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


PRICING SUPPLEMENT NO. 3 Dated December 16, 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 94-3


Interest Rate:        8.10%

Maturity Date:        December 22, 1997

Principal Amount:     $3,000,000

Acceptance Date:      December 14, 1994

Original Issue Date:  December 21, 1994

Form of Delivery:     Book-entry only

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

Issue:                94-3

Original Issue
Discount New Bond:    No

Price of New Bonds:


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

     Per New Bond     100.00%         0.350%         99.650%
     Total          $3,000,000       $10,500       $2,989,500


                      REDEMPTION PROVISIONS

   The New Bonds will not be redeemable at the option of the
Company, as a whole or in part, at any time prior to maturity.




                  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.