-----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, PTQlA0wlJca1klSEOLt6SNkkAbndQ8EdCiKUoAAAHTQjh9zJROAy+ql32FN6zr/h p/+tPRQPZzLrcwMzU8gJZg== 0000071297-96-000040.txt : 19960517 0000071297-96-000040.hdr.sgml : 19960517 ACCESSION NUMBER: 0000071297-96-000040 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 15 FILED AS OF DATE: 19960515 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: 96566783 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 first quarter of 1996: 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 1/1/96 961,675 62,533,876 10,422,314 11,383,989 Additions & Revisions through 3/31/96 - - - - --------- ----------- ---------- ---------- Balance 961,675 62,533,876 10,422,314 11,383,989 Production 1st Qtr. 1996 (96,998) (3,561,648) (593,608) (690,606) --------- ----------- ---------- ---------- Balance 3/31/96 864,677 58,972,228 9,828,706 10,693,383 --------- ----------- ---------- ----------
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 Since Quarter 1/1/96 1/1/95 1995 - 1998 --------- --------- ---------- ----------------- Samedan $439,519 $439,519 $5,856,397 $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 Inception Ended Thru 3/31/96 3/31/96 -------- -------- 2. Sales to nonaffiliates (Exhibit c.): Equivalent barrels of fuel produced 690,606 49,040,500 Average price per barrel $ 12.25 $ 14.02 ----------- ------------ Sales revenues $ 8,459,667 $687,383,496 3. Loss to NEP 7,973,306 336,804,821 4. Flow through of excess deferred 639,663 82,063,592 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 $17,072,636 $1,142,289,475 ----------- -------------- New Program: None. f. Credits applied to New England Power Company (NEP): 1. Disposition of proceeds: Amortization of cost of fuel reserves $15,738,920 $1,048,515,864 Production costs 1,069,416 79,078,888 State taxes 264,300 9,216,975 Savings to NEP - 8,701,242 Royalty to NEP - 1,099,807 Other - 65,472 ----------- -------------- Total $17,072,636 $1,146,678,248 ----------- -------------- Net income/(loss)/retained $ - $ (4,388,773) deficit ----------- -------------- -4- f. continued Quarter Inception Ended Thru 3/31/96 3/31/96 -------- --------- 2. Royalties prepaid to NEP: Beginning balance in account $ 342,312$ - ------------------------ Royalties/savings earned - (9,801,049) Royalties passed on to NEP - 10,143,361 * ------------------------ Ending balance in account $ 342,312$ 342,312 ------------------------ 3. Losses to be passed on to NEP: Beginning balance in account $ 43,731,259$ - ------------------------ Losses accrued 7,973,306 336,804,821 Losses passed on to NEP** (20,597,670) (305,697,926) ------------------------ Ending balance in account $ 31,106,895$ 31,106,895 ------------------------
* 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 December 31, 1995 (net) Subordinated notes 4,482,244 15,743,491 1 - Common stock and premium 250,000 - - ----------- ----------- ------------ Total investment by NEES 4,732,244 15,743,491 - Investment by NEES-during the quarter (net) Subordinated notes (946,082) - - Total investment by NEES through March 31, 1996 (net) Subordinated notes 3,536,162 15,743,491 - Common stock and premium 250,000 - - ----------- ----------- ------------ $ 3,786,162 $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 3/13/96$ 553,918 $ - $ - ended March 31, 1996 3/29/96 2,500,000 Payments of subordinated notes to NEES 2/15/96 (600,000) during quarter ended 2/23/96 (1,400,000) March 31, 1996 3/18/96 (2,000,000) $ - $ - ------------ ------- ------- Net change in investment $ (946,082) $ - $ - ------------ ------- ------- _______________ (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 March 31, 1996, (unaudited, subject to adjustment) Exhibit h-2 Statement of Income and Retained Deficit of NEEI for the quarter ended March 31, 1996 (unaudited, subject to adjustment) Exhibit h-3 Statement of Cash Flows of NEEI for the quarter ended March 31, 1996 (unaudited, subject to adjustment) Exhibit h-4 Computation of Bank Interest for the quarter ended March 31, 1996 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) 1st Quarter Quantity of fuel (equiv. bbl) 1,435,183.62 Average net price (per equiv. bbl) $ 6.71 ------------- Cost to NEEI $ 9,623,904 Loss from NEEI fuel exploration activities 20,597,670 ------------- Cost to NEP 30,221,574 Adjustments, inspection charges, etc. - ------------- ----------- Total $30,221,574 =========== k. Use of Proceeds from Sales of NEEI New Program Production: None. -7- Sale of NEEI Wells ------------------ Old Program - ----------- During the period from January 1, 1996 through March 31, 1996, 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 ------------ ------------------ ------------- --------------- Leslie Spring Chaves County, NM McKay Samedan Well #1&2 6/01/95* 0 State 16, #3,4 Chaves County, NM 10/01/95* 1,553 Kildare Smackover Cass County, TX E. Rodessa Unit 11/01/95* 0 Fort Cobb Caddo County, OK King Well #(1-2) 11/11/95* 0 ----- 1,553 ===== * Reported by Samedan in the first quarter of 1996.
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 1,553 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 precipitous declines in oil and gas market 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. NEEI's Old Program loss of $43,731,259, incurred in 1995, is being passed on to NEP in 1996. -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: May 15, 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 Filed herewith prospect (Old Program) c Production and net revenue Filed herewith (Old Program) h-1 Balance Sheet at March 31, 1996 Filed herewith (Unaudited, Subject to Adjustment) h-2 Statement of Income and Retained Filed herewith Deficit for the Quarter Ended March 31, 1996 (Unaudited, Subject to Adjustment) h-3 Statement of Cash Flows for the Filed herewith Quarter Ended March 31, 1996 (Unaudited, Subject to Adjustment) h-4 Computation of Bank Interest for the Filed herewith Quarter Ended March 31, 1996 i Fuel Purchased for NEP for the Filed herewith Quarter Ended March 31, 1996 j-1 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants January 1996 (Brayton Point) j-2 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants January 1996 (Salem Harbor) j-3 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants February 1996 (Brayton Point) j-4 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants February 1996 (Salem Harbor) j-5 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants March 1996 (Brayton Point) j-6 Monthly Report of Cost and Quality Filed herewith of Fuels for Electric Plants March 1996 (Salem Harbor) EX-99 3 Exhibit a NEW ENGLAND ENERGY INCORPORATED INVESTMENT IN PARTNERSHIPS BY PROSPECT - OLD PROGRAM MARCH 31, 1996
ESTIMATED TOTAL COST --------------------------------------------------- Samedan Prospect Name Exploration Development* Total - ------- ------------- ----------- ------------ --------- 62583 Brazo 50-54/37&8/65-7 17,314,784.31 49,033,189.35 66,347,973.66 62436 Eugene Island 247/8/9 5,266,643.34 23,376,143.56 28,642,786.90 61402 Northeast Chevron 2,564,439.34 23,294,427.25 25,858,866.59 62493 Eugene Island Blk 208 1,581,084.43 18,841,421.00 20,422,505.43 62559 West Delta 18/33 8,370,233.06 10,919,034.59 19,289,267.65 62479 Main Pass 90/93+4/102+5 3,857,539.09 14,655,669.24 18,513,208.33 62367 Hl 21/22/22L/34/50/51 3,950,000.92 14,215,857.33 18,165,858.25 61998 High Island A365/A376 0.00 12,032,006.97 12,032,006.97 62282 West Cameron b131/132 4,678,480.72 7,182,957.68 11,861,438.40 62289 Main Pass 107/108 1,447,333.69 8,031,094.86 9,478,428.55 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 311,363.33 5,302,574.00 5,613,937.33 62554 Eugene Island 28 1,739,766.26 3,779,200.79 5,518,967.05 62366 Brazos 400.12.13.435 1,778,642.70 3,598,632.54 5,377,275.24 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 53330 Derrick Draw/ PDR RIV 2,266,244.89 1,323,752.96 3,589,997.85 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 433/457 333,052.15 2,246,051.71 2,579,103.86 62284 Vermilion Blk 167 924,503.21 1,513,546.36 2,438,049.57 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 405,559.36 1,717,546.52 2,123,105.88 42004 Provident City/Speaks 0.00 2,041,621.10 2,041,621.10 42017 Kildare Smackover T 975,610.29 0.00 975,610.29 Other 15,755,378.27 25,656,882.16 41,412,260.43 -------------- -------------- -------------- Total Productive Samedan 91,190,163.13 254,889,191.09 346,079,354.22 -------------- -------------- -------------- Dry Holes Samedan (including depleted wells) 398,129,410.49 398,129,410.49 Work in Process Samedan 4,210,569.40 4,210,569.40 Dorchester (terminated investment) 67,401,440.17 67,401,440.17 -------------- -------------- -------------- Grand Total 560,931,583.19 254,889,191.09 815,820,774.28 ============== ============== ============== *Includes Lease Acquisition
EX-99 4 Exhibit c NEW ENGLAND ENERGY INCORPORATED PRODUCTION AND NET REVENUE - OLD PROGRAM FOR THE QUARTER ENDED MARCH 31, 1996
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 4,258.79 1,025,091.90 77,173.972,067,184.422,144,358.39 62479 Main Pass 90/93+4/102+5 400,338.96 954,617.46 954,617.46 62289 Main Pass 107/108 4,543.76 481,694.94 81,891.35 858,270.68 940,162.03 62367 Hl 21/22/22L/34/50/51 1,607.61 372,835.02 28,942.00 757,471.52 786,413.52 60998 High Island A365/A376 8,519.15 96,277.02 146,486.41 178,101.63 324,588.04 61898 Eugene Island B 24&27 6,952.72 106,363.02 116,472.83 197,713.44 314,186.27 62554 Eugene Island 28 6,223.68 91,615.98 104,312.68 163,980.38 268,293.06 62331 West Delta 27/28/48 15,869.86 2,324.04 258,100.35 4,951.33 263,051.68 62366 Brazos 400.12.13.435 531.68 130,313.04 8,769.09 247,417.18 256,186.27 62365 Matagorda Is B 586/87 96.94 152,944.98 1,565.85 238,460.58 240,026.43 62288 West Cameron Blk 290 279.85 128,983.02 4,565.74 232,103.72 236,669.46 53330 Derrick Draw/PDR RIV 12,823.41 840.00 214,530.46 511.68 214,042.14 62582 Brazos 476/491/449 68.32 103,995.96 1,218.95 193,449.66 194,668.61 42017 Kildare Smackover T 9,278.68 11,181.18 155,730.40 13,950.23 169,680.63 62493 Eugene Island Blk 208 8,567.05 3,901.98 150,961.79 10,117.19 161,078.98 62284 Vermilion Blk 167 5,683.54 6,130.98 103,733.03 15,681.57 119,414.60 Other 11,693.39 446,815.92 193,207.55 678,020.81 871,228.36 --------- ------------------------ ------------ ------------ Totals 96,998.43 3,561,647.94 1,647,662.456,812,003.488,459,665.93 ========= ======================== ============ ============
EX-99 5 Exhibit h-1 NEW ENGLAND ENERGY INCORPORATED Balance Sheet March 31, 1996 (Unaudited, Subject to Adjustment)
ASSETS - ------ Old Program New Program Combined ----------- ----------- -------- Current assets: Cash, including temporary cash investments of $4,750,000 with affiliated companies $ 4,753,622 $ 25,231 $ 4,778,853 Accounts receivable: Affiliated companies: - accrued loss to be passed on to affiliate 31,106,895 - 31,106,895 - from sales of oil 6,877,082 - 6,877,082 - other 31,857 410 32,267 Prepaid expenses 342,312 - 342,312 -------------- ------------ -------------- Total current assets 43,111,768 25,641 43,137,409 -------------- ------------ -------------- Property at cost: Cost of fuel reserves: Exploration and development costs: Samedan 744,208,765 - 744,208,765 Dorchester 67,401,440 - 67,401,440 Cost of capital 445,838,030 - 445,838,030 Other 34,873,131 - 34,873,131 -------------- ------------ -------------- 1,292,321,366 - 1,292,321,366 Less-accumulated amortization (1,048,515,864) -(1,048,515,864) -------------- ------------ -------------- Net cost of fuel reserves 243,805,502 - 243,805,502 Work in process - Samedan 4,210,569 - 4,210,569 -------------- ------------ -------------- Total property 248,016,071 - 248,016,071 -------------- ------------ -------------- $ 291,127,839 $ 25,641 $ 291,153,480 ============== ============ ============== LIABILITIES AND PARENT COMPANY'S INVESTMENT - ------------------------------------------- Current liabilities: Accrued exploration and development costs $ 27,838,513 $ $ 27,838,513* Accounts payable 3,823,354 250,309 4,073,663 Accrued interest 1,128,468 - 1,128,468 Accrued taxes payable 10,631,100 (178,054) 10,453,046 -------------- ------------ -------------- Total current liabilities 43,421,435 72,255 43,493,690 -------------- ------------ -------------- Deferred income taxes 82,302,359 (42,800) 82,259,559 -------------- ------------ -------------- Deferred credit 3,534,400 - 3,534,400 -------------- ------------ -------------- Notes payable to banks under credit agreement 166,000,000 - 166,000,000 -------------- ------------ -------------- Parent company's investment: Subordinated notes payable to parent 3,536,16215,743,491 19,279,653 Common stock, par value $1 per share 2,500 - 2,500 Paid-in capital 247,500 - 247,500 Retained deficit (7,916,517) (15,747,305) (23,663,822) -------------- ------------ -------------- Total parent company's investment (4,130,355) (3,814) (4,134,169) -------------- ------------ -------------- $ 291,127,839 $ 25,641 $ 291,153,480 ============== ============ ============== *Accrued exploration and development costs: Total (All Samedan) ------------- Exploration $10,274,339 Development 17,514,802 Work in process (299,981) Advance 349,353 ----------- $27,838,513 ===========
EX-99 6 Exhibit h-2 NEW ENGLAND ENERGY INCORPORATED Statements of Income and Retained Deficit For the Quarter Ended March 31, 1995 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating revenue: Sales of fuel to an affiliate $ 30,221,573$ -$ 30,221,573 Loss passed on to an affiliate (20,597,670) - (20,597,670) Accrued loss to be passed on to an affiliate7,973,306 - 7,973,306 Sales to nonaffiliates: Oil 1,647,663 3 1,647,666 Gas 6,812,004 3,290 6,815,294 ------------------------------------ Total operating revenue 26,056,876 3,293 26,060,169 ------------------------------------ Operating expenses: Purchases of fuel for an affiliate 9,623,904 - 9,623,904 Amortization of cost of fuel reserves 15,738,920 - 15,738,920 Production costs 1,069,416 366 1,069,782 ------------------------------------ Total operating expenses 26,432,240 366 26,432,606 ------------------------------------ Operating income/(loss) (375,364) 2,927 (372,437) Other income/(expense): Interest income - - - Interest expense (564,446) - (564,446) Other expense (18,697) - (18,697) State taxes (243,300) - (243,300) ------------------------------------ Operating and other income/(loss) (1,201,807) 2,927 (1,198,880) ------------------------------------ Federal income taxes: Current federal income taxes 8,300,200 800 8,301,000 Deferred federal income taxes (9,138,500) - (9,138,500) ------------------------------------ Net federal income taxes (838,300) 800 (837,500) ------------------------------------ Net income (363,507) 2,127 (361,380) Retained deficit at beginning of period (7,553,010)(15,749,432)(23,302,442) ------------------------------------ Retained deficit at end of period $ (7,916,517) $(15,747,305) $(23,663,822) ============ ============ ============
EX-99 7 Exhibit h-3 NEW ENGLAND ENERGY INCORPORATED Statements of Cash Flows For the Quarter Ended March 31, 1996 (Unaudited, Subject to Adjustment)
Old Program New Program Combined ----------- ----------- -------- Operating Activities: Net income $ (363,507)$ 2,127$ (361,380) Adjustments to reconcile net income to net cash provided by operating activities: Amortization of cost of fuel reserves 15,738,920 - 15,738,920 Loss passed on to an affiliate 20,597,670 - 20,597,670 Accrued loss to be passed on to an affiliate (7,973,306) -(7,973,306) Deferred income taxes (9,615,600) - (9,615,600) (Increase)/decrease in accounts receivable (excluding loss to be passed on to affiliate) (6,821,037) - (6,821,037) Increase/(decrease) in accrued exploration and development costs 603,084 - 603,084 Increase/(decrease) in accounts payable 1,985,597 366 1,985,963 Increase/(decrease) in accrued interest payable 368,212 -368,212 Increase/(decrease) in accrued taxes payable 9,074,800 800 9,075,600 ------------ --------------------- Net cash provided by operating activities $ 23,594,833 $ 3,293 $ 23,598,126 ------------ --------------------- Investing Activities: Investment in property - Samedan: Exploration (also includes dry holes, depleted wells and work in process) $ (178,190)$ -$ (178,190) Development (also reflects transfer of depleted wells) (263,874) - (263,874) Capital costs (1,973,839) - (1,973,839) Other (590,416) - (590,416) ------------ --------------------- Net cash used in investing activities $ (3,006,319)$ -$ (3,006,319) ------------ --------------------- Financing Activities: Subordinated notes payable to parent-issues $ 3,053,918 $ - $ 3,053,918 Subordinated notes payable to parent-retirements (4,000,000) - (4,000,000) Changes in notes payable to bank under credit agreement (16,000,000) - (16,000,000) ------------ --------------------- Net cash used in financing activities $(16,946,082)$ -$(16,946,082) ------------ --------------------- Net increase/(decrease) in cash and cash equivalents $ 3,642,432 $ 3,293 $ 3,645,725 Cash and cash equivalents at beginning of period1,111,190 21,938 1,133,128 ------------ --------------------- Cash and cash equivalents at end of period $ 4,753,622 $ 25,231$ 4,778,853 ------------ ---------------------
EX-99 8 Exhibit h-4 NEW ENGLAND ENERGY INCORPORATED Computation of Bank Interest Quarter Ended March 31, 1996 ------------------------------- Cost of Notes Payable to Banks Under Credit Agreement - -----------------------------------------------------
Date Paid Date or Maturity Annual Amount Issued Date Rate % Total ------ ------ ----------- ------ ----- Old Program ----------- $ 54,000,000 12/13/95 02/13/96 6.1100 $ 394,095.00 30,000,000 12/29/95 01/29/96 5.9850 139,650.00 12,000,000 11/15/95 01/16/96 6.1250 30,625.00 49,000,000 11/15/95 01/16/96 6.1725 126,021.88 47,000,000 01/16/96 04/16/96 5.8600 581,442.22 4,000,000 01/16/96 02/16/96 5.8450 20,782.22 10,000,000 01/16/96 02/16/96 5.8250 51,777.78 30,000,000 01/29/96 02/29/96 5.7975 149,768.75 40,000,000 02/13/96 02/13/97 5.2975 282,533.33 15,000,000 02/13/96 08/13/96 5.4225 108,450.00 14,000,000 02/16/96 03/18/96 5.5475 69,035.56 23,000,000 02/29/96 03/29/96 5.5475 102,782.85 14,000,000 03/18/96 04/18/96 5.6725 30,883.61 13,000,000 03/29/96 04/29/96 5.6725 6,145.21 37,000,000 12/13/95 06/13/96 5.9225 553,918.26 ------------- 2,647,911.67 Interest Rate Swap (169,839.81) Fees (Primarily facility) 55,029.19 ------------- Total Old Program $2,533,101.05 -------------
EX-99 9 Exhibit i NEW ENGLAND ENERGY INCORPORATED Fuel Purchased for NEP for the Quarter Ended March 31, 1996 -----------------------------------------
Exploration - ----------- Date purchased (delivered) Jan. 24, 1996 Jan. 29, 1996 Feb. 14, 1996 ------------- ------------- ------------- Quantity of fuel (eq. bbl) 224,543.63 153,431.23 129,225.04 Average net price (per eq. bbl) $ 7.09 $ 7.17$ 6.40 ---------- --- ---------- --- -------------- Cost to NEEI $1,593,048.63$1,100,359.21$ 827,416.61 Loss from NEEI fuel exploration activities 3,222,635.26 2,202,036.09 1,854,630.19 ---------- ---------- ---------- Cost to NEP $4,815,683.89$3,302,395.32$2,682,046.80 ---------- -- --- ------------- ------------ Date purchased (delivered) Feb. 17, 1996 Feb. 20, 1996 ------------- ------------- Quantity of fuel (eq. bbl) 149,743.13 164,582.05 Average net price (per eq. bbl) $ 7.25 $ 6.17 ------------- ---------- --- Cost to NEEI $1,085,449.76$1,015,854.76 ------------- ---------- --- Loss from NEEI fuel exploration activities 2,149,104.68 2,362,072.02 ------------- ---------- --- Cost to NEP $3,234,554.44$3,377,926.78 ---------- --- ---------- --- Date purchased (delivered) Feb. 25, 1996 Feb. 26, 1996 Mar. 12, 1996 Mar. 15, 1996 ------------ ------------- ------------- ------------- Quantity of fuel (eq. bbl) 122,189.93 163,617.15 166,829.92 161,021.55 Average net price (per eq. bbl) $ 6.40$ 6.40$ 6.72 $ 6.53 ---------------- ---------------- ------------- -------------- Cost to NEEI $ 782,371.44 $1,047,626.30 $1,120,837.94 $ 1,050,939.18 Loss from NEEI fuel exploration activities 1,753,662.76 2,348,223.78 2,394,333.35 2,310,971.88 ------------ ------------- ------------ ------------- Cost to NEP $2,536,034.20 $3,395,850.08 $3,515,171.29 $3,361,911.06 ------------- ------------- ------------- -------------
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 01/96 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 March 19, 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 02/96 BIT S 999 IM 045 CAYPA 28.2 11918 0.68 5.75 168.62 13 C 06/98 BIT S 8 WV 045 DALTEX 9.5 12358 0.72 11.36 165.40 14 C 12/96 BIT S 50 IM 999 DIABLO PASO 14.1 12874 0.72 6.05 151.33 15 C 11/95 BIT S 8 WV 045 HOBET 3.9 12358 0.72 11.36 166.10 16 C 06/98 BIT S 8 WV 045 HOBET 16.8 12358 0.72 11.36 163.32 17 C 03/96 BIT U 50 IM 999 NORTE DE SANTAN 26.6 13003 0.77 7.96 162.43 18 C 03/98 BIT U 8 KY 159 PONTIKI 31.7 12828 0.76 7.07 191.65 19 C 12/95 BIT U 8 WV 045 RUM CREEK 6.6 12562 0.75 10.81 163.08 20 C 06/96 BIT U 8 WV 045 RUM CREEK 25.2 12486 0.71 11.19 174.21 21 C 05/98 BIT S 8 WV 39 SAMPLES 14.8 12675 0.70 11.87 176.57 22 C 02/96 BIT U 08 KY 195 WHITES CLOUD 7.5 12712 0.70 6.28 142.76 (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 01/96 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 March 12, 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 37.0 12855 0.75 6.64 150.20 13 C 12/96 BIT S 50 IM 999 DIABLO PASO 77.6 12833 0.74 6.34 154.37 (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 02/96 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 April 9, 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 06/96 BIT U 08 WV 059 ASHLAND 71.1 12924 0.75 8.90 180.83 13 S 04/96 BIT U 08 WV 059 ASHLAND 29.7 13010 0.75 8.11 193.22 14 C 12/98 BIT S 45 IMP 999 EL CERREJON 33.8 12096 0.58 5.64 141.05 15 S 05/96 BIT U 8 WV 5 HAMPTON 10.0 12500 0.68 10.89 170.95 16 C 12/96 BIT U 8 KY 159 MARTIN COUNTY 18.9 12467 0.69 9.53 175.72 17 C 12/96 BIT U 8 WV 599 MINGO LOGAN 10.5 13118 0.74 8.61 185.29 18 S 04/96 BIT S 45 IMP 999 OREGANAL 42.1 11334 0.65 5.09 161.84 19 C 06/96 BIT U 8 WV 045 RUM CREEK 111.7 12480 0.70 10.76 184.41 20 C 12/96 BIT U 8 WV 059 SIDNEY COAL 21.1 12467 0.69 9.53 173.72 (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 02/96 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 April 9, 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 36.3 12906 0.66 5.68 154.45 13 C 12/96 BIT S 45 imp 999 EL CERREJON 51.3 12192 0.58 5.44 146.26 (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 03/96 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 May 14, 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 04/96 BIT U 8 WV 059 ASHLAND 40.5 12890 0.68 8.58 176.15 13 S 05/96 BIT U 8 WV 15 FOLA 15.1 12500 0.68 10.89 177.65 14 S 04/96 BIT U 8 WV 15 FOLA-CR 20.0 12633 0.65 10.79 182.67 15 C 04/96 BIT U 8 KY 159 MARTIN COUNTY 14.8 12733 0.69 9.43 182.85 16 S 04/96 BIT U 8 KY 159 MARTIN COUNTY 20.1 12641 0.75 9.54 181.57 17 C 06/96 BIT U 8 WV 045 RUM CREEK 4.9 12390 0.68 10.00 173.53 18 C 04/96 BIT U 8 WV 059 SIDNEY COAL 24.3 12733 0.69 9.43 182.85 19 S 04/96 BIT U 8 WV 059 SIDNEY COAL 20.5 12641 0.75 9.54 181.57 (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 03/96 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 May 14, 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 12/96 BIT S 45 IMP 999 EL CERREJON 36.7 12087 0.57 5.88 147.24 (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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