SECURITIES AND EXCHANGE COMMISSION
	Washington, DC  20549


	FORM 8-K

	CURRENT REPORT


	Pursuant to Section 13 of the
	Securities Exchange Act of 1934


	Date of Earliest Event Reported: August 15, 2001


	NEW ENGLAND POWER COMPANY

	(exact name of registrant as specified in charter)


Massachusetts	  1-6564	   04-1663070
(state or other	(Commission	(I.R.S. Employer
jurisdiction of	 File No.)	 Identification No.)
incorporation)




	25 Research Drive, Westborough, Massachusetts 01582

(Address of principal executive offices)

(508) 389-2000

(Registrant's telephone number, including area code)



Item 5.  Other Events
- ---------------------

On August 15, 2001, Vermont Yankee Nuclear Power Corporation
(Vermont Yankee) announced that it had reached an agreement to
sell the Vermont Yankee nuclear plant to Entergy Nuclear
Northeast, a subsidiary of Entergy Corporation for $180 million.
 New England Power Company (the Company) has a 22.5 percent
ownership interest in Vermont Yankee. The Company's portion of
the sale price would be $40.5 million ($32.6 million for the
plant and related assets and $7.9 for nuclear fuel).  The press
release issued by Vermont Yankee in connection with the sale
announcement is filed herewith as Exhibit 99 and incorporated
herein by reference.

Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
- -----------------------------------------------------------------

	Exhibit 99 Press Release of Vermont Yankee Nuclear Power
Corporation issued August 15, 2001.






	SIGNATURE

Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this Current Report on
Form 8-K to be signed on its behalf by the undersigned thereunto
duly authorized.

NEW ENGLAND POWER COMPANY


							s/Peter G. Flynn
By_______________________________
   Peter G. Flynn
   President


Date:   August 23, 2001






EXHIBIT INDEX

EXHIBIT	DESCRIPTION	PAGE

99	Press Release of Vermont Yankee 	Filed herewith
Nuclear Power Corporation issued
August 15, 2001.





										EXHIBIT 99

LOGO
	Entergy					VERMONT YANKEE
						Nuclear Power Corporation
- ----------------------------------------------------------------


	Date:	August 15, 2001		NEWS
				RELEASE
	For Release:	Immediate

	Contacts:	Entergy Nuclear	Vermont Yankee
		Carl Crawford	Rob Williams
		(News Media)	(802) 258-4181
		(601) 368-5658 office	rob.williams@vynpc.com
		(888) 432-5493 pager
		ccrawfo@entergy.com

		Nancy Morovish	JPMorgan
		(Investor Relations)	Paul Dabbar
		(504) 576-5506	(212) 622-2287
		nmorovi@entergy.com


Note to Editors:  Entergy and Vermont Yankee will hold a joint
News Conference on this sale at 12 noon EDT (11 a.m. CDT)
Wednesday.  You may listen in or ask a question by dialing (719)
219-0214, password 500777




ENTERGY WILL BUY VERMONT YANKEE FOR $180 MILLION

NEW ORLEANS - Entergy Corporation (NYSE: ETR) and the
Vermont Yankee Nuclear Power Corporation have reached an
agreement to sell the Vermont Yankee nuclear power plant in
Vernon, VT, to Entergy for $180 million.
Vermont Yankee will become Entergy's 10th nuclear unit and its
fifth in the Northeast.  Entergy Nuclear has operated five nuclear
units in Arkansas, Mississippi and Louisiana for more than 20
years and began buying its properties in the Northeast in 1999.
The $180 million in cash represents $145 million for the
plant and related assets, and $35 million for nuclear fuel.
"We expect to realize significant operating efficiencies
since Vermont Yankee is a sister plant to our Pilgrim plant in
Plymouth, Mass., and our FitzPatrick plant in Oswego County,
N.Y.," said Wayne Leonard, Chief Executive Officer of Entergy.
All three are boiling water reactors designed by General Electric
and, as a result, many resources such as inventories and spare
parts, best safety practices, group purchasing, specialized
technical skills, manpower, key management and financing can be
shared.
Ross Barkhurst, President and Chief Executive Officer of
Vermont Yankee, said, "We are pleased to be selling this
outstanding nuclear plant to a national leader in nuclear plant
operations with a strong track record of safe operations. We are
very pleased that the auction process run by JPMorgan has been so
successful.  We were able to execute the auction on a timely basis
with a process which garnered significant interest and clearly
maximized the value of the plant."
In addition to $180 million, Entergy will retain the plant's
450 employees at their same salary and comparable benefits.
Entergy will also receive nuclear fuel and all materials and
spare parts inventory as well as the plant, switchyard and related
real estate in nearby Brattleboro.  Entergy will also assume
decommissioning liability for the plant and the plant's
decommissioning trust fund, which is required by the U.S. Nuclear
Regulatory Commission.  No decommissioning top-off or any other
financing by Vermont Yankee Nuclear Power Corporation is
anticipated with the transaction.
The deal calls for Entergy to provide the current output
level of the plant to Vermont Yankee's present sponsors at average
annual prices ranging from $39 - $45 per megawatt-hour through
2012, when the present operating license expires.
The agreement includes a "low market adjuster" that protects
Vermont Yankee owner-utilities and their power consumers in case
power market prices drop significantly.  If a prior year's average
market price of power is more than five percent below the annual
agreement price for the current year, the agreement price would
drop to 105 percent of the previous year's average market price.
The Vermont Yankee Nuclear Power Corporation is owned by 12
New England utilities.  The largest shareholder is Central
Vermont Public Service Corp. in Rutland, VT, 31.3 percent, and
the others are New England Power Co., 22.5 percent; Green
Mountain Power Corp., 17.9 percent; Connecticut Light and Power
Co., 9.5 percent; Central Maine Power Co. and Public Service
Company of New Hampshire, 4 percent each; Burlington Electric
Department, 3.6 percent; Cambridge Electric Light and Western
Massachusetts Electric Co., 2.5 percent each; Vermont Electric
Cooperative, Inc., 1 percent, and Washington Electric Cooperative
Inc. and Village of Lyndonville Electric Department, 0.6 percent
each.
Entergy Nuclear Chief Executive Officer Jerry Yelverton said
the power purchase agreement benefits Entergy as well as New
England.  "New England power consumers will have a reliable source
of electricity with built-in price stability.  That reduces our
risk and allows us to focus our time and attention on increasing
the plant's capacity factor, achieving cost synergies with other
plants, and maintaining the highest level of safe operations."
The sale is subject to the approval of the Public Service
Board of Vermont, the U.S. Nuclear Regulatory Commission, the
Federal Energy Regulatory Commission and other regulatory
authorities.  After their approvals, a closing is targeted for the
spring of 2002.
Vermont Yankee is the largest power generator in Vermont,
producing about 30 percent of the power used by Vermont consumers.
With a 510-megawatt capacity, the unit can produce enough power to
supply about 500,000 homes.
The plant has been an excellent performer with an average
capacity factor of 89 percent over the past 10 years, the second
highest of all boiling water power reactors in the nation.
"The men and women of Vermont Yankee have worked hard
fulfilling our commitment to a high standard of operations," said
Barkhurst, Vermont Yankee's president.  "Entergy's purchase is a
clear indication that our hard work is valued by a nuclear
industry leader.  Our employees' culture of excellence will be
welcomed by Entergy's successful national operation."
Yelverton, Entergy Nuclear's CEO, said Entergy will be
committed to high environmental standards and close, supportive
relations with local communities, as the current Vermont Yankee
owners have been.
Vermont Yankee Chairman Robert Young said, "This agreement
preserves the economic benefits that Vermont Yankee provides the
state and the region and the price stability inherent in the
purchase power agreement helps protect New England's electric
consumers from the volatility of the electricity market. We look
forward to bringing this agreement before our regulators for a
thorough review in the coming months."
The plant and related assets will be transferred to Entergy
Nuclear Vermont Yankee LLC, an Entergy subsidiary, and will become
part of the Entergy Nuclear Northeast fleet.
In addition to the three boiling water reactors mentioned,
Entergy also owns and operates the Indian Point 3 unit, purchased
from the New York Power Authority last November, and is preparing
to close the purchase of the Indian Point 2 plant from Con Edison
this fall.  Both are Westinghouse pressurized water reactors and
located on the same site in north Westchester County, N.Y.
The nuclear businesses of Entergy Corporation are
headquartered in Jackson, Miss.  As a global energy company,
Entergy, based in New Orleans, is the third largest power
generator in the nation with more than 30,000 megawatts of
generating capacity, about $9 billion in annual revenue and over
2.6 million customers in Arkansas, Mississippi, Louisiana and
Texas.
Entergy Nuclear South operates five nuclear units from its
regional office in Jackson, Miss.  Its newly acquired units are
managed from its Entergy Nuclear Northeast regional office in
White Plains, N.Y.  Entergy Nuclear also manages decommissioning
activities and furnishes license renewal engineering services to
the U.S. nuclear power industry.
JPMorgan acted as exclusive financial advisor to Vermont
Yankee on the sale, and has been advisor on the sale of 11 of the
last 13 nuclear units sold in the U.S., including Millstone, Nine
Mile Point, Indian Point 3 and James A. Fitzpatrick.
- -30-
Entergy's on-line address is www.entergy-nuclear.com
Vermont Yankee's on-line address is www.vermontyankee.com
THE FOLLOWING CONSTITUTES A "SAFE HARBOR" STATEMENT UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:  Investors are
cautioned that forward-looking statements contained herein with
respect to the revenues, earnings, performance, strategies,
prospects and other aspects of the business of Entergy Corporation,
Entergy Arkansas, Inc., Entergy Gulf States, Inc., Entergy
Louisiana, Inc., Entergy Mississippi, Inc., Entergy New Orleans,
Inc., and System Energy Resources, Inc. and their affiliated
companies may involve risks and uncertainties.  A number of factors
could cause actual results or outcomes to differ materially from
those indicated by such forward-looking statements.  These factors
include, but are not limited to, risks and uncertainties relating
to:  the effects of weather, the performance of generating units
and transmission systems, the possession of nuclear materials, fuel
and purchased power prices and availability, the effects of
regulatory decisions and changes in law, litigation, capital
spending requirements, the onset of competition, including the
ability to recover net regulatory assets and other potential
stranded costs, the effects of recent developments in the
California electricity market on the utility industry nationally,
advances in technology, changes in accounting standards, corporate
restructuring and changes in capital structure, the success of new
business ventures, changes in the markets for electricity and other
energy-related commodities, changes in interest rates and in
financial and foreign currency markets generally, the economic
climate and growth in Entergy's service territories, changes in
corporate strategies, and other factors.