-----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, WC905JvVdR/GZ6LYN0+SEvJCz402ObGLvhVdV7PuG7hgvcNqLO35is0WiMMRCfN9 XQVBV1AcrUAGCJepEzuH8Q== 0000071297-97-000055.txt : 19970828 0000071297-97-000055.hdr.sgml : 19970828 ACCESSION NUMBER: 0000071297-97-000055 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 5 FILED AS OF DATE: 19970827 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: 070-07950 FILM NUMBER: 97670382 BUSINESS ADDRESS: STREET 1: 25 RESEARCH DR CITY: WESTBOROUGH STATE: MA ZIP: 01581 BUSINESS PHONE: 5083669011 35-CERT 1 File Nos. 70-7950/70-8555 CERTIFICATE OF NOTIFICATION (Rule 24) SECURITIES AND EXCHANGE COMMISSION BY NEES GLOBAL TRANSMISSION, INC. (NGT) (Formerly New England Electric Resources, Inc. (NEERI)) In accordance with the orders of the Securities and Exchange Commission dated September 4, 1992 and May 15, 1995, the following is a report for the second quarter of 1997: 1. Effective July 1, 1997, NEERI changed its name to NEES Global Transmission, Inc. (NGT). NGT is a Massachusetts corporation which was formed in January 1992. NGT was not capitalized until October 13, 1992 when one thousand shares of NGT common stock were issued to New England Electric System (NEES). To assist Nantucket Electric Company (NEC) in meeting its short-term needs for reliable energy, NGT provided materials, delivery, installation, interconnection and start-up testing services for a fully automated two unit diesel driven electric generating plant at the existing NEC Airport Generating Station. The agreement provided for billing over a three year period at $25,070 per month. As of May 31, 1997, the balance was paid in full. NGT is a party to an agreement with a company located in Pennsylvania to provide ongoing work as a subcontractor for electric meter retrofit services. The work took place in Massachusetts. $70,000 was recognized in the second quarter. NGT is a party to three agreements to provide construction related services at job sites in Massachusetts and Minnesota. A total of $10,000 was recognized under these contracts in the second quarter of 1997. 2. As of June 30, 1997, NEES had purchased 1,000 shares of NGT common stock and made subordinated loans totaling $10,200,000 to NGT. 3. As of June 30, 1997, NGT employed no permanent personnel. However, during the three month period ending June 30, 1997, 81 employees of associated companies of NEES billed portions of their time to NGT. 4. As of June 30, 1997, NGT had not purchased or received from associated companies of NEES any intellectual property. 5. During the three month period ending June 30, 1997, NGT received legal, financial, and other administrative services from New England Power Service Company, amounting to $847,000. 6. In July, 1996 NEERI International, a wholly-owned subsidiary of NGT, was formed under the laws of the Cayman Islands. NGT owns two shares of NEERI International, which will serve as a Project Parent for prospective EWG/FUCO investments under File No. 70-8783. NEERI International has no employees. In the quarter ending June 30, 1997, NEERI International had no revenues, but had $717,000 in expenses related to FUCO project development. 7. Attached in Exhibits A through C are the consolidated financial statements of NGT. These statements include a balance sheet, income statement, and statement of cash flows. All significant intercompany transactions have been eliminated. In May, 1995 NGT invested $1,000,000 in Separation Technologies, Inc. (STI). This investment is in the form of 153,846 shares of 6% cumulative convertible preferred stock. NGT also provides maintenance services for STI equipment on an as needed basis, for which no revenues were recognized in the second quarter of 1997. In July, 1996 NGT invested $475,000 in Monitoring Technologies, Inc. This investment is in the form of 271,429 shares of Series E convertible preferred stock. SIGNATURE Pursuant to the requirements of the Public Utility Holding Company Act of 1935, the undersigned company has duly caused this certificate of notification (Commission's File Nos. 70-7950 and 70-8555) to be signed on its behalf by the undersigned officer thereunto duly authorized. NEES GLOBAL TRANSMISSION, INC. s/John G. Cochrane By: _________________________________ John G. Cochrane Treasurer Date: August 27, 1997 EX-99 2 EXHIBIT INDEX Exhibit No. Description Page - ----------- ----------- ---- A Balance Sheet at June 30, 1997 Filed (Unaudited, subject to adjustment) herewith B Statement of Income and Accumulated Filed Deficit for the twelve months ended herewith June 30, 1997 (Unaudited, subject to adjustment) C Statement of Cash Flows for the Filed twelve months ended June 30, 1997 herewith (Unaudited, subject to adjustment) EX-99 3 EXHIBIT A Exhibit A NEES GLOBAL TRANSMISSION, INC. Balance Sheet June 30, 1997 (Unaudited, Subject to Adjustment) (thousands of dollars) ASSETS - ------ Current assets: Cash $ 105 Accounts receivable 279 Accounts receivable from associated companies 582 Prepayments 449 ------- Total current assets 1,415 ------- Investment in Separation Technologies, Inc., at cost 1,000 Investment in Monitoring Technologies, Inc., at cost 475 ------- Total other assets 1,475 ------- Total assets $ 2,890 ======= LIABILITIES AND PARENT COMPANY'S INVESTMENT - ------------------------------------------- Current liabilities: Accounts payable to associated companies $ 40 Accounts payable 415 Taxes payable 1 ------- Total liabilities 456 Parent company's investment: Common stock, par value $1 per share 1 Subordinated notes payable to parent 10,174 Accumulated deficit (7,741) ------- Total parent company's investment 2,434 ------- Total liabilities and parent company's investment $ 2,890 ======= EX-99 4 EXHIBIT B Exhibit B NEES GLOBAL TRANSMISSION, INC. Statement of Income and Accumulated Deficit For the Twelve Months Ended June 30, 1997 (Unaudited, Subject to Adjustment) (thousands of dollars) INCOME - ------ Services rendered to nonassociated companies $ 1,464 ------- Total Income $ 1,464 ------- EXPENSE - ------- Administrative and General Expenses $ 8,320 Income taxes (2,366) ------- Total Expenses 5,954 Net Income/(Loss) $(4,490) ======= Accumulated deficit at beginning of period (3,251) Accumulated deficit at end of period $(7,741) ======= EX-99 5 EXHIBIT C Exhibit C NEES GLOBAL TRANSMISSION, INC. Statement of Cash Flows For the Twelve Months Ended June 30, 1997 (Unaudited, Subject to Adjustment) (thousands of dollars) Operating Activities: Net loss $(4,490) Adjustments to reconcile net loss to net cash provided by operating activities: Deferred income taxes (113) (Increase)/decrease in accounts receivable (370) (Increase)/decrease in prepayments 183 Increase/(decrease) in accounts payable 275 Increase/(decrease) in taxes payable 1 ------- Net cash used in operating activities $(4,514) ======= Investing Activities: Investment in Monitoring Technologies, Inc. $ (475) ------- Net cash used in investing activities $ (475) ======= Financing Activities: Subordinated notes payable to parent-issues $ 5,000 ------- Net cash provided by financing activities $ 5,000 ======= Net increase/(decrease) in cash and cash equivalents $ 11 Cash and cash equivalents at beginning of period 94 ------- Cash and cash equivalents at end of period $ 105 ======= -----END PRIVACY-ENHANCED MESSAGE-----