File No. 33-49193
                                                Rule 424(b)(2)


PRICING SUPPLEMENT NO. 1 Dated September 20, 1994

(To Prospectus Dated August 12, 1994)

                    NEW ENGLAND POWER COMPANY
          (A SUBSIDIARY OF NEW ENGLAND ELECTRIC SYSTEM)

                    SECURED MEDIUM-TERM NOTES
        (General and Refunding Mortgage Bonds, Series Y)
                           Issue 94-1


Interest Rate:        8.53%

Maturity Date:        September 20, 2024

Principal Amount:     $5,000,000

Acceptance Date:      September 14, 1994

Original Issue Date:  September 21, 1994

Form of Delivery:     Book-entry only

Depositary:           The Depository Trust Company
                      55 Water Street
                      New York, New York

Issue:                94-1

Original Issue
Discount New Bond:    No

Price of New Bonds:


                     Initial
                     Price to      Underwriting    Proceeds to
                     Public         Discounts        Company
                    -----------    ------------    -----------

     Per New Bond     100.00%         0.750%         99.250%
     Total          $5,000,000       $37,500       $4,962,500


                      REDEMPTION PROVISIONS

   The New Bonds will not be redeemable prior to September 20, 2004. 
Thereafter the New Bonds will be redeemable at the option of the Company, as a
whole or in part, at any time prior to maturity, whether or not on an interest
payment date, on at least 30 days' notice, given as provided in the Indenture,
at the following general redemption prices expressed as percentages of the
principal amount.  The New Bonds will also be redeemable, on like notice,
through the application of replacement fund, insurance, eminent domain, or
other moneys held by the Trustee, at the following special redemption prices
similarly expressed, together in each case with accrued and unpaid interest to
the redemption date.


                        REDEMPTION PRICES

   If redeemed at any time in the respective twelve months' period beginning
September 20 in each of the following years:

                          GENERAL        SPECIAL
                         REDEMPTION     REDEMPTION
        YEAR              PRICES         PRICES
        ----             ----------     ----------

        2004              104.27%        100.00%
        2005              103.84%        100.00%
        2006              103.41%        100.00%
        2007              102.99%        100.00%
        2008              102.56%        100.00%
        2009              102.13%        100.00%
        2010              101.71%        100.00%
        2011              101.28%        100.00%
        2012              100.85%        100.00%
        2013              100.43%        100.00%
        2014              100.00%        100.00%
        2015              100.00%        100.00%
        2016              100.00%        100.00%
        2017              100.00%        100.00%
        2018              100.00%        100.00%
        2019              100.00%        100.00%
        2020              100.00%        100.00%
        2021              100.00%        100.00%
        2022              100.00%        100.00%
        2023              100.00%        100.00%

If this New Bond is called in whole or in part, and if provision has been duly
made for notice of such call and for payment as required in the Indenture,
thereafter this New Bond, or such called part of the principal amount hereof,
shall cease to be secured by the lien of the Indenture, no interest shall
accrue on this New Bond or such called part hereof on and after the date fixed
for redemption, and the Company after said date fixed for redemption shall be
under no further liability in respect of the principal of or premium, if any,
or interest on this New Bond or such called part hereof (except as expressly
provided in the Indenture); and if less than the whole principal amount hereof
shall be so called, the registered owner hereof shall be entitled, in addition
to the sums payable on account of the part called, to receive, without expense
to such owner, on surrender of this New Bond duly endorsed or accompanied by a
duly executed instrument of transfer, one or more Secured Medium-Term Notes
(General and Refunding Mortgage Bonds - Series Y, Issue 94-1) for an aggregate
principal amount equal to that part of the principal amount hereof not then
called and paid.

                  DISTRIBUTION OF THE NEW BONDS

   The New Bonds were sold to CS First Boston Corporation as Agent in
connection with the offering of the New Bonds described in this Pricing
Supplement.