-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MkDicxFvgD+6XUdKo+fmuPuas0NV5vltkZqYYoXEzFg8k0ygji8m7oX9T4BTXxf8 IdVqiPM+2DlsxwbwO2t3Vw== 0000071297-96-000009.txt : 19960216 0000071297-96-000009.hdr.sgml : 19960216 ACCESSION NUMBER: 0000071297-96-000009 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 15 FILED AS OF DATE: 19960214 SROS: BSE SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW ENGLAND ELECTRIC SYSTEM CENTRAL INDEX KEY: 0000071297 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 041663060 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: 1935 Act SEC FILE NUMBER: 070-05543 FILM NUMBER: 96518349 BUSINESS ADDRESS: STREET 1: 25 RESEARCH DR CITY: WESTBOROUGH STATE: MA ZIP: 01581 BUSINESS PHONE: 5083669011 35-CERT 1 File Nos. 70-5543/70-6958 70-7055/70-6513 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report Pursuant to Rule 24 under the Public Utility Holding Company Act of 1935 NEW ENGLAND ELECTRIC SYSTEM (NEES) NEW ENGLAND ENERGY INCORPORATED (NEEI) In accordance with the Orders of the Securities and Exchange Commission dated July 19, 1978, October 22, 1985, October 3, 1991 and December 8, 1987, following is a report for the fourth quarter of 1995: For the purpose of this report and following the Commission's Order dated October 22, 1985 (Release No. 23873), references herein to "Old Program" relate to that portion of the NEEI oil and gas exploration and development program which consists of prospects entered into through December 31, 1983. Likewise, references to "New Program" relate to prospects entered into since December 31, 1983. In 1991, NEEI sold substantially all of the properties in the New Program. No new prospects have been acquired since December 31, 1986. a. Investment in partnerships by prospect: See Exhibit a. b. Summary statement of proved and probable reserves: Old Program -----------
Natural Gas Oil and ----------- Total Condensate Equivalent Equivalent Bbl. MCF Bbl. Bbl. ---------- ---------- ---------- ---------- Balance 9/30/95 900,098 64,656,780 10,776,131 11,676,229 Additions & Revisions through 12/31/95 133,582 1,482,048 247,008 380,590 --------- ---------- ---------- ---------- Balance 1,033,680 66,138,828 11,023,139 12,056,819 Production 4th Qtr.1995 (72,005) (3,604,952) (600,825) (672,830) --------- ---------- ---------- ---------- Balance 12/31/95 961,675 62,533,876 10,422,314 11,383,989
New Program ----------- None. -2- c. Production and revenue by prospect: See Exhibit c. d. Description of Operations: NEEI has participated through its partnership with Samedan Oil Corporation (Samedan) in drilling operations with the results as summarized below. Also shown are activities on properties acquired from a former partner, Dorchester Exploration, Inc. (Dorchester), prior to termination of that partnership. NEEI sold its remaining interests in "Dorchester" properties as of June 1, 1988. Old Program ----------- Since Quarter Inception ------- --------- No. of dry holes Samedan 0 762 Dorchester 0 51 -- ----- 0 813 -- ----- No. of productive wells Samedan 0 1,139* Dorchester 0 69* -- ----- 0 1,208* -- ----- No. of wells drilled 0 2,021 (both exploration and development) -- ----- * Includes depleted/sold wells as follows: Samedan 0 469 Dorchester 0 69 -- ----- 0 538 -- ----- New Program ----------- None. INVESTMENT ---------- Budget Authorized Actual By SEC ---------------------- ----------------- Since Quarter 1/1/95 1995 - 1998 ---------- ---------- ----------------- Samedan $1,180,983 $5,416,878 $30,000,000 (A) (A) Authorized through December 31, 1998, by Order dated December 20, 1994 (Release No. 35-26197; 70-7055). -3- e. Fuel Production, Sales and Other Income: Old Program: 1. Sales to affiliates: There have been no direct sales of NEEI oil and gas production to affiliates.
Quarter Year Inception Ended Ended Thru 12/31/95 12/31/95 12/31/95 -------- --------- --------- 2. Sales to nonaffiliates (Exhibit c.): Equivalent barrels of fuel produced 672,830 3,046,920 48,349,894 Average price per barrel $ 9.19 $ 9.68 $ 14.04 ----------- ------------ -------------- Sales revenues $ 6,179,994 $ 29,502,623 $ 678,923,829 3. Loss to NEP9,100,453 43,731,259 328,831,515 4. Flow through of excess deferred 934,418 4,120,918 81,423,929 taxes 5. Investment tax credit - - 13,817,248 6. Depletion - - 6,740,318 7. Deferred tax related to reserve - - 9,080,000 addition 8. Transfer of reserve (net) from - - 6,400,000 NEES ----------- ------------ -------------- Total $16,214,865 $ 77,354,800 $1,125,216,839 ----------- ------------ -------------- New Program: None. f. Credits applied to New England Power Company (NEP): 1. Disposition of proceeds: Amortization of cost of fuel reserves $14,246,444 $ 68,708,044 $1,032,776,944 Production costs 1,275,688 5,151,823 78,009,472 State taxes 692,733 3,494,933 8,952,675 Savings to NEP - - 8,701,242 Royalty to NEP - - 1,099,807 Other - - 65,472 ----------- ------------ -------------- Total $16,214,865 $ 77,354,800 $1,129,605,612 ----------- ------------ -------------- Net income/(loss)/retained $ - $ - $ (4,388,773) deficit ----------- ------------ --------------
-4- f. continued
Quarter Year Inception Ended Ended Thru 12/31/95 12/31/95 12/31/95 -------- --------- --------- 2. Royalties prepaid to NEP: Beginning balance in account$ 342,312 $ 342,312 $ - ------------ ------------ ------------ Royalties/savings earned - - (9,801,049) Royalties passed on to NEP - - 10,143,361* ------------ ------------ ------------ Ending balance in account $ 342,312 $ 342,312 $ 342,312 ------------ ------------ ------------ 3. Losses to be passed on to NEP: Beginning balance in account $ 34,630,806 $ 39,793,816 $ - ------------ ------------ ------------ Losses accrued 9,100,453 43,731,259 328,831,515 Losses passed on to NEP** - (39,793,816) (285,100,256) ------------ ------------ ------------ Ending balance in account $ 43,731,259 $ 43,731,259 $ 43,731,259 ------------ ------------ ------------ * Includes $8,701,242 savings passed on to NEP for sales prior to 1/1/84 pursuant to Commission Order File No. 70-5543. ** Consistent with pricing policy approved in Release No. 23873, current year losses cannot be recovered until the following year.
-5- g. Investment by NEES compared with Commission Authorization:
Release No./Date -------------------------------------- 25129 24847 24847 ----- ----- ----- 8/8/90 3/29/89 3/29/89 ------ ------- ------- Maximum NEES Investment authorized: $45,000,000(1) $75,000,000 $400,000,000 ----------- ----------- ------------ 1. Investments by NEES-inception through September 30, 1995 (net) Subordinated notes 3,459,843 15,743,491 1 - Common stock and premium 250,000 - - ----------- ----------- ------------ Total investment by NEES 3,709,843 15,743,491 - Investment by NEES-during the quarter (net) Subordinated notes 1,022,401 - - Total investment by NEES through December 31, 1995 (net) Subordinated notes 4,482,244 15,743,491 - Common stock and premium 250,000 - - ----------- ----------- ------------ $ 4,732,244 $15,743,491 $ - ----------- ----------- ------------ 2. Increase or Reduction in Investment by NEES: Date Amount Date Amount Date Amount ---- ------ ---- ------ ---- ------ Issues of subordinated notes to NEES during quarter 10/13/95 $ 630,922 $ - $ - ended December 31, 1995 12/13/95 383,063 12/15/95 750,000 12/29/95 8,416 Payments of subordinated notes to NEES during quarter ended December 31, 1995 12/29/95 $ (750,000) ---------- ------- ------- Net change in investment $1,022,401 $ - $ - ---------- ------- ------- _______________ (1) Plus any after-tax net loss attributable to the expensing of interest on up to $37,200,000 of borrowings in connection with the Old Program.
-6- h. Financial Statements: Exhibit h-1 Balance Sheet of NEEI at December 31, 1995, (unaudited, subject to adjustment) Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the periods ended December 31, 1995 (unaudited, subject to adjustment) Exhibit h-3 Statement of Cash Flows of NEEI for the periods ended December 31, 1995 (unaudited, subject to adjustment) Exhibit h-4 Computation of Bank Interest for the quarter ended December 31, 1995 i. Fuel purchased during quarter for NEP: (Summary: See Exhibit i for detail.) 1. From proceeds from sale of NEEI Old Program production Date purchased (delivered) 4th Quarter Quantity of fuel (equiv. bbl) - Average net price (per equiv. bbl) $ - ------------- Cost to NEEI $ - Loss from NEEI fuel exploration activities - ------------- Cost to NEP - Adjustments, inspection charges, etc. - ------------- ----------- Total $ - =========== j. Copies of filings on Form 429 related to the above sales are attached. (See Exhibits j-1 through j-6.) k. Use of Proceeds from Sales of NEEI New Program Production: None. -7- Sale of NEEI Wells ------------------ Old Program - ----------- During the period from October 1, 1995 through December 31, 1995, NEEI disposed of its interest in Existing (Old) Program wells containing proved or probable reserves as follows: Est. Net Reserves Effective (Eq. Bbls) as Date of of Date of Prospect Location Disposition Disposition -------- -------- ----------- ------------------ Booker Ochiltree County, TX Born Well #1-119 7/1/95* 984 Spicer Wells #1-5 7/1/95* 775 Banner Canadian County, OK McDonald Well #1-12 11/1/95 0 ------ 1,759 ====== * Reported by Samedan in the fourth quarter of 1995. The order of the Securities and Exchange Commission dated October 22, 1985 (Release No. 23873) requires NEEI to include the reserves associated with the above wells as production upon which royalties would be payable to NEP, but authorizes NEEI to defer such inclusion to coincide with the estimated production cycle for each well. However, in light of the particularly small quantities of reserves represented in the table above, NEEI will include the total 0 barrels of remaining reserves in the calculation of the royalty for 1995. Due to operating losses, no royalty has been paid since 1985. Losses Passed to NEP -------------------- Through December 31, 1985, NEEI's Old Program generated customer savings. Due to low oil and gas prices, the Old Program generated operating losses for the first time during 1986. As a result of the losses during 1986, the crossover reserve, which was $24.1 MM at December 31, 1985, was exhausted. NEEI passed its 1986 losses in excess of the reserve, $277,732, on to NEP in 1987. NEEI's Old Program incurred losses in 1987 through 1994 totalling $284,822,524 which were passed on to NEP in 1988 through 1995. -8- SIGNATURES Pursuant to the requirements of the Public Utility Holding Company Act of 1935, each undersigned company has duly caused this report (Commission's File Nos. 70-5543, 70-6513, 70-6958, and 70-7055) to be signed on its behalf, as indicated, by the undersigned officer thereunto duly authorized by each such company. NEW ENGLAND ELECTRIC SYSTEM s/Michael E. Jesanis Michael E. Jesanis, Treasurer NEW ENGLAND ENERGY INCORPORATED s/John G. Cochrane John G. Cochrane, Treasurer Date: February 14, 1996 The name "New England Electric System" means the trustee or trustees for the time being (as trustee or trustees but not personally) under an agreement and declaration of trust dated January 2, 1926, as amended, which is hereby referred to, and a copy of which as amended has been filed with the Secretary of the Commonwealth of Massachusetts. Any agreement, obligation or liability made, entered into or incurred by or on behalf of New England Electric System binds only its trust estate, and no shareholder, director, trustee, officer or agent thereof assumes or shall be held to any liability therefor. EX-99 2 EXHIBIT INDEX Exhibit No. Description Page - ----------- ----------- ---- a Investment in partnerships by prospect Filed herewith (Old Program) c Production and net revenue (Old Filed herewith Program) h-1 Balance Sheet at December 31, 1995 Filed herewith (Unaudited, Subject to Adjustment) h-2 Statement of Income and Retained Filed herewith Deficit for the Periods Ended December 31, 1995 (Unaudited, Subject to Adjustment) h-3 Statement of Cash Flows for the Periods Filed herewith Ended December 31, 1995 (Unaudited, Subject to Adjustment) h-4 Computation of Bank Interest for the Filed herewith Quarter Ended December 31, 1995 i Fuel Purchased for NEP for the Quarter Filed herewith Ended December 31, 1995 j-1 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants October 1995 (Brayton Point) j-2 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants October 1995 (Salem Harbor) j-3 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants November 1995 (Brayton Point) j-4 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants November 1995 (Salem Harbor) j-5 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants December 1995 (Brayton Point) j-6 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants December 1995 (Salem Harbor) EX-99 3 Exhibit a NEW ENGLAND ENERGY INCORPORATED INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM DECEMBER 31, 1995
ESTIMATED TOTAL COST --------------------------------------------------- Samedan Prospect Name Exploration Development* Total - ------- ------------- ----------- ------------ --------- 62583 Brazo 50-54/37&8/65-7 17,314,752.43 49,033,273.38 66,348,025.81 62436 Eugene Island 247/8/9 5,266,657.06 23,376,143.56 28,642,800.62 61402 Northeast Chevron 2,564,439.34 23,294,434.19 25,858,873.53 62493 Eugene Island Blk 208 1,581,077.04 18,841,421.00 20,422,498.04 62559 West Delta 18/33 8,370,144.68 10,919,705.93 19,289,850.61 62479 Main Pass 90/93+4/102+5 3,853,792.84 14,655,669.24 18,509,462.08 62367 Hl 21/22/22L/34/50/51 3,950,000.92 14,225,813.51 18,175,814.43 61998 High Island A365/A376 0.00 12,031,850.91 12,031,850.91 62282 West Cameron b131/132 4,678,480.72 7,182,957.68 11,861,438.40 62289 Main Pass 107/108 1,447,643.02 8,016,544.23 9,464,187.25 62468 Vermilion 114/109 1,914,848.45 5,375,635.48 7,290,483.93 61898 Eugene Island B 24&27 2,966,098.22 4,028,068.37 6,994,166.59 62331 West Delta 27/28/48 2,746,928.39 3,881,364.84 6,628,293.23 21494 Banner 313,031.00 5,303,312.16 5,616,343.16 62554 Eugene Island 28 1,739,766.29 3,779,587.50 5,519,353.79 62366 Brazos 400.12.13.435 1,778,642.70 3,598,632.58 5,377,275.28 61501 Vermilion 241/261 (EC) 2,221,789.49 3,078,515.66 5,300,305.15 62365 Matagorda Is B 586/87 2,151,279.02 2,517,546.64 4,668,825.66 42017 Kildare Smackover T 975,610.29 2,596,207.24 3,571,817.53 53330 Derrick Draw/ PDR RIV 2,245,902.09 1,322,105.55 3,568,007.64 62558 South Timbalier 197 2,307,523.54 531,751.78 2,839,275.32 51673 Williston 0.00 2,641,589.99 2,641,589.99 62377 Vermilion Block 76 945,194.84 1,652,785.69 2,597,980.53 62543 West Cameron 433/457 333,045.85 2,246,051.71 2,579,097.56 62284 Vermilion Blk 167 924,493.21 1,513,546.36 2,438,039.57 62322 West Cameron Blk 67 0.00 2,420,322.67 2,420,322.67 51947 Powder River Basin 2,415,841.82 0.00 2,415,841.82 21617 Fort Cobb 405,558.73 1,717,545.11 2,123,103.84 42004 Provident City/Speaks 0.00 2,041,621.10 2,041,621.10 Other 15,756,588.89 23,054,869.38 38,811,458.27 -------------- -------------- -------------- Total Productive Samedan 91,169,130.87 254,878,873.44 346,048,004.31 -------------- -------------- -------------- Dry Holes Samedan (including depleted wells) 397,875,855.18 397,875,855.18 Work in Process Samedan 4,053,411.02 4,053,411.02 Dorchester (terminated investment) 67,401,440.17 67,401,440.17 -------------- -------------- -------------- Grand Total 560,499,837.24 254,878,873.44 815,378,710.68 ============== ============== ============== *Includes Lease Acquisition
EX-99 4 Exhibit c-1 NEW ENGLAND ENERGY INCORPORATED PRODUCTION AND NET REVENUE - OLD PROGRAM FOR THE QUARTER ENDED DECEMBER 31, 1995
Production Revenue ---------------------------------------------------------------- Oil and Prospect Condensate Gas Oil and No. Prospect Name Bbls. MCF Condensate Gas Total - -------- ------------- ---------- ----- ---------- ----- ------- 62583 Brazo 50-54/37&8/65-7 4,079.54 1,209,270.90 70,342.481,785,965.84 1,856,308.32 62367 HI 21/22/22L/34/50/51 275.84 648,000.00 4,209.06 987,520.12 991,729.18 62479 Main Pass 90/93+4/102+5 0.00 364,239.66 0.00 556,745.76 556,745.76 61998 High Island A365/A376 10,229.50 104,598.00 166,856.65 141,194.24 308,050.89 62289 Mian Pass 107/108 3,865.83 189,273.96 64,872.40 179,802.58 244,674.98 62366 Brazos 400.12.13.435 512.74 154,144.98 8,147.08 210,159.54 218,306.62 62365 Matagora Island B586/87 72.31 160,761.00 1,149.25 209,873.82 211,023.07 53330 Derrick Draw/PDR RIV 13,149.94 1,506.00 208,988.78 674.36 209,663.14 61898 Eugene Island B24&27 1,352.50 119,179.98 20,671.54 160,092.00 180,763.54 62288 West Cameron Blk 290 506.49 122,515.98 7,711.77 155,699.90 163,411.67 62493 Eugene Island Blk 208 8,929.70 4,405.98 145,163.22 7,329.67 152,492.89 42017 Kildare Smackover T 8,407.20 9,739.08 134,017.01 12,369.36 146,386.37 62554 Eugene Island 28 1,253.35 95,586.00 19,381.83 126,888.60 146,270.43 62582 Brazos 476/491/449 81.62 81,822.00 1,377.91 113,210.68 114,588.59 62284 Vermilion Blk 167 5,461.71 6,987.00 92,598.42 11,299.29 103,897.71 62331 West Delta 27/28/48 4,119.63 7,608.00 63,969.62 12,034.89 76,004.51 Other 9,707.73 325,313.52 153,930.23 345,745.73 499,675.96 --------- ------------------------ ------------ ------------ Totals 72,005.63 3,604,952.04 1,163,387.255,016,606.38 6,179,993.63 ========= ======================== ============ ============
Exhibit c-2 NEW ENGLAND ENERGY INCORPORATED PRODUCTION AND NET REVENUE - OLD PROGRAM FOR THE YEAR ENDED DECEMBER 31, 1995
Production Revenue ---------------------------------------------------------------- Oil and Prospect Condensate Gas Oil and No. Prospect Name Bbls. MCF Condensate Gas Total - -------- ------------- ---------- ----- ---------- ----- ------- 62583 Brazo 50-54/37&8/65-7 18,942.00 5,981,685.78 333,987.789,089,419.68 9,423,407.46 62479 Mian Pass 90/93+4/102+5 395.83 2,061,539.64 5,743.473,317,289.55 3,323,033.02 62367 HI 21/22/22L/34/50/51 2,508.11 1,609,391.94 41,102.622,539,944.45 2,581,047.07 62289 Mian Pass 107/108 17,232.32 1,153,334.88 293,525.531,249,105.94 1,542,631.47 61998 High Island A365/A376 41,591.18 356,262.06 702,477.70 511,041.59 1,213,519.29 62554 Eugene Isalnd 28 15,744.43 535,266.00 255,924.07 790,791.38 1,046,715.45 62366 Brazos 400.12.13.435 2,532.39 699,398.82 38,934.421,005,927.27 1,044,861.69 62365 Matagorda Is B 586/87 370.12 731,686.02 6,021.68 950,991.88 957,013.56 53330 Derrick Draw/ PDR RIV 57,638.69 11,831.82 903,804.58 6,626.38 910,430.96 61898 Eugene Island B 24&27 14,791.80 433,777.02 240,577.11 668,962.52 909,539.63 62288 West Cameron Blk 290 1,728.81 482,209.98 27,194.67 704,209.69 731,404.36 62493 Eugene Isalnd Blk 208 38,883.14 16,257.00 651,710.06 26,968.75 678,678.81 42017 Kildare Smackover T 35,687.15 37,558.08 582,923.88 50,662.84 633,586.72 62322 West Cameron Block 67 39.76 17,047.08 652.36 556,697.41 557,349.77 62582 Brazos 476/491/449 493.51 357,721.02 8,624.12 497,498.76 506,122.88 62284 Vermilion Blk 167 23,494.14 34,037.94 408,579.86 58,346.27 466,926.13 62436 Eugene Island 247/8/9 5.13 275,868.96 83.60 442,088.60 442,172.20 62331 West Delta 27/28/48 23,652.65 18,626.04 378,768.44 27,496.10 406,264.54 62468 Vermilion 114/109 688.32 183,999.12 9,131.88 182,048.61 191,180.49 62282 West Cameron B131/132 220.94 92,373.06 3,709.08 144,722.53 148,431.61 Other 42,587.87 1,156,277.40 688,552.671,099,752.81 1,788,305.48 ---------- --------------------------------------------------- Totals 339,228.29 16,246,149.66 5,582,029.58 23,920,593.01 29,502,622.59 ========== ===================================================
EX-99 5 Exhibit h-1 NEW ENGLAND ENERGY INCORPORATED Balance Sheet December 31, 1995 (Unaudited, Subject to Adjustment)
ASSETS - ------ Old Program New Program Combined ----------- ----------- -------- Current assets: Cash, including temporary cash investments of $1,100,000 with affiliated companies $ 1,111,190$ 21,938 $ 1,133,128 Accounts receivable: Affiliated companies: - accrued loss to be passed on to affiliate 43,731,259 - 43,731,259 - from sales of oil 7,825 - 7,825 - other 80,077 410 80,487 Prepaid expenses 342,312 - 342,312 -------------- ------------ -------------- Total current assets 45,272,663 22,348 45,295,011 -------------- ------------ -------------- Property at cost: Cost of fuel reserves: Exploration and development costs: Samedan 743,923,859 - 743,923,859 Dorchester 67,401,440 - 67,401,440 Cost of capital 443,864,191 - 443,864,191 Other 34,282,715 - 34,282,715 -------------- ------------ -------------- 1,289,472,205 - 1,289,472,205 Less-accumulated amortization (1,032,776,944) -(1,032,776,944) -------------- ------------ -------------- Net cost of fuel reserves 256,695,261 - 256,695,261 Work in process - Samedan 4,053,411 - 4,053,411 -------------- ------------ -------------- Total property 260,748,672 - 260,748,672 -------------- ------------ -------------- $ 306,021,335 $ 22,348 $ 306,043,683 ============== ============ ============== LIABILITIES AND PARENT COMPANY'S INVESTMENT - ------------------------------------------- Current liabilities: Accrued exploration and development costs $ 27,235,429 $ - $ 27,235,429* Accounts payable 1,837,757 249,943 2,087,700 Accrued interest 760,256 - 760,256 Accrued taxes 1,556,300 (178,854) 1,377,446 -------------- ------------ -------------- Total current liabilities 31,389,742 71,089 31,460,831 -------------- ------------ -------------- Deferred income taxes 91,705,859 (42,800) 91,663,059 -------------- ------------ -------------- Deferred credit 3,746,500 - 3,746,500 -------------- ------------ -------------- Notes payable to banks under credit agreement 182,000,000 - 182,000,000 -------------- ------------ -------------- Parent company's investment: Subordinated notes payable to parent 4,482,24415,743,491 20,225,735 Common stock, par value $1 per share 2,500 - 2,500 Paid-in capital 247,500 - 247,500 Retained deficit (7,553,010) (15,749,432) (23,302,442) -------------- ------------ -------------- Total parent company's investment (2,820,766) (5,941) (2,826,707) -------------- ------------ -------------- $ 306,021,335 $ 22,348 $ 306,043,683 ============== ============ ============== *Accrued exploration and development costs: Total (All Samedan) ------------- Exploration $10,307,482 Development 17,599,165 Work in process 25,749 Advance (696,967) ----------- $27,235,429 ===========
EX-99 6 Exhibit h-2 Page 1 of 2 NEW ENGLAND ENERGY INCORPORATED Statements of Income and Retained Deficit For the Quarter Ended December 31, 1995 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating revenue: Sales of fuel to an affiliate $ -$ -$ - Loss passed on to an affiliate - - - Accrued loss to be passed on to an affiliate9,100,453 - 9,100,453 Sales to nonaffiliates: Oil 1,163,387 123 1,163,510 Gas 5,016,607 2,507 5,019,114 ------------------------------------ Total operating revenue 15,280,447 2,630 15,283,077 ------------------------------------ Operating expenses: Purchases of fuel for an affiliate - - - Amortization of cost of fuel reserves 14,246,444 - 14,246,444 Production costs 1,275,688 8,436 1,284,124 ------------------------------------ Total operating expenses 15,522,132 8,436 15,530,568 ------------------------------------ Operating income/(loss) (241,685) (5,806) (247,491) Other income/(expense): Interest income - 106 106 Interest expense (590,449) - (590,449) State taxes (656,233) 12,000 (644,233) ------------------------------------ Operating and other income/(loss) (1,488,367) 6,300 (1,482,067) ------------------------------------ Federal income taxes: Current federal income taxes (708,853) (103,954) (812,807) Deferred federal income taxes (419,515) 8,100 (411,415) ------------------------------------ Net federal income taxes (1,128,368) (95,854) (1,224,222) ------------------------------------ Net income (359,999) 102,154 (257,845) Retained deficit at beginning of period (7,193,011)(15,851,586)(23,044,597) ------------------------------------ Retained deficit at end of period $ (7,553,010) $(15,749,432) $(23,302,442) ============ ============ ============
Exhibit h-2 Page 2 of 2 NEW ENGLAND ENERGY INCORPORATED Statements of Income and Retained Deficit For the Year Ended December 31, 1995 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating revenue: Sales of fuel to an affiliate $ 63,132,685$ -$ 63,132,685 Loss passed on to an affiliate (39,793,816) - (39,793,816) Accrued loss to be passed on to an affiliate 43,731,259 - 43,731,259 Sales to nonaffiliates: Oil 5,582,030 644 5,582,674 Gas 23,920,593 20,391 23,940,984 ------------------------------------ Total operating revenue 96,572,751 21,035 96,593,786 ------------------------------------ Operating expenses: Purchases of fuel for an affiliate 23,338,869 - 23,338,869 Amortization of cost of fuel reserves 68,708,044 - 68,708,044 Production costs 5,151,823 11,832 5,163,655 General and Administrative Costs 228,883 - 228,883 ------------------------------------ Total operating expenses 97,427,619 11,832 97,439,451 ------------------------------------ Operating income/(loss) (854,868) 9,203 (845,665) Other income/(expense): Interest income - 2,042 2,042 Interest expense (2,478,329) - (2,478,329) State taxes (3,397,433) 12,000 (3,385,433) ------------------------------------ Operating and other income/(loss) (6,730,630) 23,245 (6,707,385) ------------------------------------ Federal income taxes: Current federal income taxes 12,354,547 (98,154) 12,256,393 Deferred federal income taxes (17,388,915) 8,100 (17,380,815) ------------------------------------ Net federal income taxes (5,034,368) (90,054) (5,124,422) ------------------------------------ Net income (1,696,262) 113,299 (1,582,963) Retained deficit at beginning of period (5,856,748)(15,862,731)(21,719,479) ------------------------------------ Retained deficit at end of period $ (7,553,010) $(15,749,432) $(23,302,442) ============ ============ ============
EX-99 7 Exhibit h-3 Page 1 of 2 NEW ENGLAND ENERGY INCORPORATED Statements of Cash Flows For the Quarter Ended December 31, 1995 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating Activities: Net income $ (359,999)$ 102,154$ (257,845) Adjustments to reconcile net income to net cash provided by operating activities: Amortization of cost of fuel reserves 14,246,444 - 14,246,444 Loss passed on to an affiliate - - - Accrued loss to be passed on to an affiliate (9,100,453) -(9,100,453) Deferred income taxes 534,385 8,100 542,485 (Increase)/decrease in accounts receivable (excluding loss to be passed on to affiliate) (69,131) 203 (68,928) Increase/(decrease) in accrued exploration and development costs (1,370,242) - (1,370,242) Increase/(decrease) in accounts payable 69,197 (9,207) 59,990 Increase/(decrease) in accrued interest payable (419,002) -(419,002) Increase/(decrease) in accrued taxes (3,547,267) (99,754) (3,647,021) ------------ --------------------- Net cash provided by operating activities $ (16,068) $ 1,496$ (14,572) ------------ --------------------- Investing Activities: Investment in property - Samedan: Exploration (also includes dry holes, depleted wells and work in process) $ 4,052,099 $ -$ 4,052,099 Development (also reflects transfer of depleted wells) (5,233,083) - (5,233,083) Capital costs (2,060,031) - (2,060,031) Other (752,118) - (752,118) ------------ --------------------- Net cash used in investing activities $ (3,993,133)$ -$ (3,993,133) ------------ --------------------- Financing Activities: Subordinated notes payable to parent-issues $ 1,772,401 $ -$ 1,772,401 Subordinated notes payable to parent-retirements (750,000) -(750,000) Changes in notes payable to bank under credit agreement 2,000,000 - 2,000,000 ------------ --------------------- Net cash used in financing activities $ 3,022,401 $ -$ 3,022,401 ------------ --------------------- Net increase/(decrease) in cash and cash equivalents $ (986,800) $ 1,496$ (985,304) Cash and cash equivalents at beginning of period2,097,990 20,442 2,118,432 ------------ --------------------- Cash and cash equivalents at end of period $ 1,111,190 $ 21,938$ 1,133,128 ------------ ---------------------
Exhibit h-3 Page 2 of 2 NEW ENGLAND ENERGY INCORPORATED Statements of Cash Flows For the Year Ended December 31, 1995 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating Activities: Net income $ (1,696,262)$ 113,299$ (1,582,963) Adjustments to reconcile net income to net cash provided by operating activities: Amortization of cost of fuel reserves 68,708,044 - 68,708,044 Loss passed on to an affiliate 39,793,816 - 39,793,816 Accrued loss to be passed on to an affiliate (43,731,259) -(43,731,259) Deferred income taxes (15,432,715) 8,100 (15,424,615) (Increase)/decrease in accounts receivable (excluding loss to be passed on to affiliate) (55,169) (150) (55,319) Increase/(decrease) in accrued exploration and development costs 954,086 - 954,086 Increase/(decrease) in accounts payable (274,238) (99,871) (374,109) Increase/(decrease) in accrued interest payable (30,515) - (30,515) Increase/(decrease) in accrued taxes payable 2,644,839 (199,754) 2,445,085 ------------ --------------------- Net cash provided by operating activities $ 50,880,627 $(178,376)$ 50,702,251 ------------ --------------------- Investing Activities: Investment in property - Samedan: Exploration (also includes dry holes, depleted wells and work in process) $ 1,522,302 $ -$ 1,522,302 Development (also reflects transfer of depleted wells) (8,076,088) - (8,076,088) Capital costs (9,625,928) - (9,625,928) Other (2,722,565) - (2,722,565) ------------ --------------------- Net cash used in investing activities $(18,902,279)$ -$(18,902,279) ------------ --------------------- Financing Activities: Subordinated notes payable to parent-issues $ 3,531,364 $ 145,800 $ 3,677,164 Subordinated notes payable to parent-retirements (1,750,000) - (1,750,000) Changes in notes payable to bank under credit agreement (34,000,000) - (34,000,000) ------------ --------------------- Net cash used in financing activities $(32,218,636)$ 145,800$(32,072,836) ------------ --------------------- Net increase/(decrease) in cash and cash equivalents $ (240,088) $ (32,576)$ (272,644) Cash and cash equivalents at beginning of period1,351,478 54,514 1,405,992 ------------ --------------------- Cash and cash equivalents at end of period $ 1,111,190 $ 21,938$ 1,133,128 ------------ ---------------------
EX-99 8 Exhibit h-4 NEW ENGLAND ENERGY INCORPORATED Computation of Bank Interest Quarter Ended December 31, 1995 -------------------------------- Cost of Notes Payable to Banks Under Credit Agreement - -----------------------------------------------------
Date Paid Date or Maturity Annual Amount Issued Date Rate % Total ------ ------ ----------- ------ ----- Old Program ----------- $ 37,000,000 04/13/95 10/13/95 6.6725 $ 82,294.17 54,000,000 09/13/95 12/13/95 6.1100 669,045.00 30,000,000 08/15/95 11/15/95 6.0900 228,375.00 12,000,000 08/15/95 11/15/95 6.0300 90,450.00 19,000,000 08/15/95 11/15/95 6.1100 145,112.50 28,000,000 09/29/95 12/29/95 6.1100 422,947.78 37,000,000 10/13/95 12/13/95 6.1100 383,063.06 12,000,000 11/15/95 01/16/96 6.1250 95,958.33 49,000,000 11/15/95 01/16/96 6.1725 394,868.54 54,000,000 12/13/95 02/13/96 6.1100 174,135.00 37,000,000 12/13/95 02/13/96 5.9225 115,653.26 30,000,000 12/29/95 01/29/96 5.9850 14,962.50 --------------- 2,816,865.14 Interest Rate Swap (215,704.02) Fees (Primarily facility) 49,126.46 --------------- Total Old Program $2,650,287.58 ---------------
EX-99 9 Exhibit i NEW ENGLAND ENERGY INCORPORATED Fuel Purchased for NEP for the Quarter Ended December 31, 1995 ----------------------------------------- No fuel purchased for NEP during the quarter. EX-99 10 Exhibit j-1
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1619 02 Month & Year of Report 10/95 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Brayton Point 06 Plant Location Brayton Point Road, Somerset, MA 02726 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Mary E. O'Neil 10 Title Senior Fuel Analyst 11 Date Report Completed December 13, 1995 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 S 12/95 BIT U 45 999 999 CDC LAJAGUA 27.7 12356 0.57 4.44 153.09 13 C 02/96 BIT U 50 IM 999 NORTE DE SANTAN 26.3 12505 0.72 7.64 152.55 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 11 Exhibit j-2
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1626 02 Month & Year of Report 10/95 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Salem Harbor 06 Plant Location 24 Fort Ave., Salem, MA 01970 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Mary E. O'Neil 10 Title Senior Fuel Analyst 11 Date Report Completed Decenber 13, 1995 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 C 12/95 BIT S 50 IM 999 DIABLO PASO 36.5 13084 0.60 5.74 147.18 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 12 Exhibit j-3
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1619 02 Month & Year of Report 11/95 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Brayton Point 06 Plant Location Brayton Point Road, Somerset, MA 02726 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Mary E. O'Neil 10 Title Senior Fuel Analyst 11 Date Report Completed January 11, 1996 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 C 12/95 BIT S 50 IM 999 DIABLO PASO 36.7 12941 0.72 6.03 147.77 13 C 02/96 BIT U 50 IM 999 NORTE DE SANTAN 28.2 13388 0.73 6.74 153.06 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 13 Exhibit j-4
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1626 02 Month & Year of Report 11/95 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Salem Harbor 06 Plant Location 24 Fort Ave., Salem, MA 01970 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Mary E. O'Neil 10 Title Senior Fuel Analyst 11 Date Report Completed January 11, 1996 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 S 12/95 BIT S 45 999 999 CDC LAJAGUA 41.1 12357 0.60 4.72 152.80 13 C 12/95 BIT S 50 IM 999 DIABLO PASO 50.4 12591 0.64 7.02 146.43 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 14 Exhibit j-5
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1619 02 Month & Year of Report 12/95 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Brayton Point 06 Plant Location Brayton Point Road, Somerset, MA 02726 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Mary E. O'Neil 10 Title Senior Fuel Analyst 11 Date Report Completed 02/09/96 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 S 01/96 BIT S 45 999 999 CDC LAJAGUA 64.8 12229 0.58 4.72 162.81 13 S 01/96 BIT S 45 999 999 CERREJON CNTRL 19.3 12150 0.70 5.02 171.49 14 C 06/98 BIT S 8 WV 045 DALTEX 47.3 12313 0.74 11.51 166.57 15 C 12/95 BIT S 50 IM 999 DIABLO PASO 36.0 12850 0.72 5.89 148.27 16 S 01/96 BIT U 50 IM 999 NORTE DE SANTAN 91.9 12673 0.73 7.78 161.52 17 C 02/96 BIT U 08 KY 195 WHITES CLOUD 3.5 12712 0.70 6.28 145.56 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
EX-99 15 Exhibit j-6
Monthly Cost and Quality of Fuels for Electric Plants FERC 429 Facsimile 01 Company-Plant Code 13433-1626 02 Month & Year of Report 12/95 03 Reporting Company New England Electric 04 Page Number 1 05 Plant Name Salem Harbor 06 Plant Location 24 Fort Ave., Salem, MA 01970 07 Person to be Contacted Fuel Dept. Concerning Data Coal Group Entered on this Form 25 Research Drive, Westboro, MA 01582 08 Telephone Number 508-389-3029 / 508-389-3227 09 Signature of Official Submitting this Report s/ Mary E. O'Neil 10 Title Senior Fuel Analyst 11 Date Report Completed 02/09/96 Purchases Coal Mines Only Source Data --------- -------------------------- ------------------------------------------------------- Quality as Received Cont Fuel Coal State County Originating Quantity ------------------- Purch Price Type Expir Type Type Dist Abbr No Location Received BTU Sulfur Ash Cents/MMBT (1) (2) (3) (4) ---- ----- ---- ---- ---- ----- ------ ----------- -------- --- ------ ---- ----------- 12 S 01/96 BIT S 45 999 999 CERREJON CNTRL 44.3 12150 0.70 5.02 172.19 (1) Coal = 1,000 tons (2) Coal per lb (3) and (4) Percent Oil = 1,000 bbls Oil per gal Gas = 1,000 Mcf Gas per cu ft
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