-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, oAiXDmv5L1kfkjTi4k/kQg4VX9Wexc5QtVlMnM507E9hrnTHmIejrg8mdtcNlav0 1Yg3dY/QC2W7LOTWkSwVzQ== 0000071337-95-000010.txt : 19950512 0000071337-95-000010.hdr.sgml : 19950512 ACCESSION NUMBER: 0000071337-95-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950511 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW ENGLAND POWER CO CENTRAL INDEX KEY: 0000071337 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 041663070 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06564 FILM NUMBER: 95536410 BUSINESS ADDRESS: STREET 1: 25 RESEARCH DR CITY: WESTBOROUGH STATE: MA ZIP: 01582 BUSINESS PHONE: 6173669011 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1995 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 0-1229 (LOGO) NEW ENGLAND POWER COMPANY (Exact name of registrant as specified in charter) MASSACHUSETTS 04-1663070 (State or other (I.R.S. Employer jurisdiction of Identification No.) incorporation or organization) 25 Research Drive, Westborough, Massachusetts 01582 (Address of principal executive offices) Registrant's telephone number, including area code (508-389-2000) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes (X) No ( ) Common stock, par value $20 per share, authorized and outstanding: 6,449,896 shares at March 31, 1995. PART I FINANCIAL INFORMATION Item 1. Financial Statements - ---------------------------- NEW ENGLAND POWER COMPANY Statements of Income Periods Ended March 31 (Unaudited)
Three Months Twelve Months ------------ ----------- 1995 1994 1995 1994 ---- ---- ---- ---- (In Thousands) Operating revenue, principally from affiliates $391,118 $399,574 $1,532,301 $1,553,523 -------- -------- ---------- ---------- Operating expenses: Fuel for generation 60,596 73,359 247,777 273,405 Purchased electric energy 145,341 120,838 538,086 520,898 Other operation 50,156 44,402 202,364 178,700 Maintenance 30,429 20,906 120,051 106,662 Depreciation and amortization 29,933 34,658 133,254 132,451 Taxes, other than income taxes 15,302 15,356 54,346 52,922 Income taxes 19,272 33,182 82,686 100,716 -------- -------- ---------- ---------- Total operating expenses 351,029 342,701 1,378,564 1,365,754 -------- -------- ---------- ---------- Operating income 40,089 56,873 153,737 187,769 Other income: Allowance for equity funds used during construction 2,401 1,776 9,767 4,337 Equity in income of nuclear power companies 1,400 1,287 4,929 5,348 Other income (expense) - net, including related taxes (2,362) (2,371) (284) (1,595) -------- -------- ---------- ---------- Operating and other income 41,528 57,565 168,149 195,859 -------- -------- ---------- ---------- Interest: Interest on long-term debt 11,238 9,152 40,797 42,738 Other interest 2,115 39 4,032 4,945 Allowance for borrowed funds used during construction - credit (2,807) (815) (7,846) (2,390) -------- -------- ---------- ---------- Total interest 10,546 8,376 36,983 45,293 -------- -------- ---------- ---------- Net income $ 30,982 $ 49,189 $ 131,166 $ 150,566 ======== ======== ========== ========== Statements of Retained Earnings Retained earnings at beginning of period $372,763 $346,153 $ 370,289 $ 342,655 Net income 30,982 49,189 131,166 150,566 Dividends declared on cumulative preferred stock (858) (866) (3,432) (4,351) Dividends declared on common stock (30,637) (24,187) (125,773) (117,711) Premium on redemption of preferred stock (870) -------- -------- ---------- ---------- Retained earnings at end of period $372,250 $370,289 $ 372,250 $ 370,289 ======== ======== ========== ========== The accompanying notes are an integral part of these financial statements. Per share data is not relevant because the Company's common stock is wholly owned by New England Electric System.
NEW ENGLAND POWER COMPANY Balance Sheets (Unaudited)
March 31, December 31, ASSETS 1995 1994 ------ ---- ---- (In Thousands) Utility plant, at original cost $2,551,652 $2,524,544 Less accumulated provisions for depreciation and amortization 1,020,356 1,001,393 ---------- ---------- 1,531,296 1,523,151 Net investment in Seabrook 1 under rate settlement 30,549 38,283 Construction work in progress 330,360 314,777 ---------- ---------- Net utility plant 1,892,205 1,876,211 ---------- ---------- Investments: Nuclear power companies, at equity 46,459 46,349 Non-utility property and other investments, at cost 22,979 22,980 ---------- ---------- Total investments 69,438 69,329 ---------- ---------- Current assets: Cash 1,507 377 Accounts receivable, principally from sales of electric energy: Affiliated companies 197,383 197,655 Others 55,066 69,532 Fuel, materials, and supplies, at average cost 74,124 73,361 Prepaid and other current assets 27,701 33,729 ---------- ---------- Total current assets 355,781 374,654 ---------- ---------- Accrued Yankee Atomic costs 110,661 122,452 Deferred charges and other assets 183,809 170,192 ---------- ---------- $2,611,894 $2,612,838 ========== ========== CAPITALIZATION AND LIABILITIES ------------------------------ Capitalization: Common stock, par value $20 per share, authorized and outstanding 6,449,896 shares $ 128,998 $ 128,998 Premiums on capital stocks 86,829 86,829 Other paid-in capital 288,000 288,000 Retained earnings 372,250 372,763 ---------- ---------- Total common equity 876,077 876,590 Cumulative preferred stock, par value $100 per share 60,516 60,516 Long-term debt 710,389 695,466 ---------- ---------- Total capitalization 1,646,982 1,632,572 ---------- ---------- Current liabilities: Long-term debt due within one year 10,000 Short-term debt (including $8,050,000 and $16,575,000 to affiliates 91,875 145,575 Accounts payable (including $61,414,000 and $69,089,000 to affiliates) 167,818 179,761 Accrued liabilities: Taxes 21,021 6,133 Interest 9,612 9,914 Other accrued expenses 12,109 10,866 Dividends payable 30,637 ---------- ---------- Total current liabilities 343,072 352,249 ---------- ---------- Deferred federal and state income taxes 365,973 364,073 Unamortized investment tax credits 58,539 59,014 Accrued Yankee Atomic costs 110,661 122,452 Other reserves and deferred credits 86,667 82,478 ---------- ---------- $2,611,894 $2,612,838 ========== ========== The accompanying notes are an integral part of these financial statements.
NEW ENGLAND POWER COMPANY Statements of Cash Flows Quarters Ended March 31 (Unaudited)
1995 1994 ---- ---- (In Thousands) Operating activities: Net income $ 30,982 $ 49,189 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 31,661 35,803 Deferred income taxes and investment tax credits - net 2,763 4,090 Allowance for funds used during construction (5,208) (2,591) Decrease (increase) in accounts receivable 14,738 24,456 Decrease (increase) in fuel, materials, and supplies (763) (11,978) Decrease (increase) in prepaid and other current assets 6,028 1,178 Increase (decrease) in accounts payable (11,943) 9,079 Increase (decrease) in other current liabilities 15,830 5,470 Other, net (13,141) (6,746) -------- -------- Net cash provided by operating activities $ 70,947 $107,950 -------- -------- Investing activities: Plant expenditures, excluding allowance for funds used during construction $(40,259) $(62,317) -------- -------- Net cash used in investing activities $(40,259) $(62,317) -------- -------- Financing activities: Dividends paid on common stock $ $(14,512) Dividends paid on preferred stock (858) (866) Changes in short-term debt (53,700) (28,650) Long-term debt - issues 35,000 Long-term debt - retirements (10,000) -------- -------- Net cash used in financing activities $(29,558) $(44,028) -------- -------- Net increase in cash and cash equivalents $ 1,130 $ 1,605 Cash and cash equivalents at beginning of period 377 610 -------- -------- Cash and cash equivalents at end of period $ 1,507 $ 2,215 ======== ======== Supplementary information: Interest paid less amounts capitalized $ 11,104 $ 9,068 -------- -------- Federal and state income taxes paid $ (4,771) $ 21,881 -------- -------- The accompanying notes are an integral part of these financial statements.
Note A - Investments in Nuclear Power Companies - ----------------------------------------------- A summary of combined results of operations, assets and liabilities of the four Yankee Nuclear Power Companies in which the Company has investments is as follows: Quarters Ended March 31, - ----------------- 1995 1994 ---- ---- (In Thousands) Operating revenue $207,280 $150,649 ======== ======== Net income $ 8,318 $ 7,922 ======== ======== Company's equity in net income $ 1,400 $ 1,287 ======== ======== March 31, December 31, 1995 1994 ---- ---- (In Thousands) Plant $ 518,354 $ 566,836 Other assets 1,475,406 1,304,715 Liabilities and debt (1,746,804) (1,624,643) ----------- ----------- Net assets $ 246,956 $ 246,908 =========== =========== Company's equity in net assets $ 46,459 $ 46,559 =========== =========== At March 31, 1995, $12,516,000 of undistributed earnings of the nuclear power companies were included in the Company's retained earnings. The Company has a 20 percent ownership interest in the Maine Yankee Atomic Power Company (Maine Yankee) which owns an 880 megawatt (MW) nuclear generating station in Wiscasset, Maine. Since January 1995, the station has been shut down for refueling and inspection. During the inspection, Maine Yankee detected substantial deterioration of its steam generator tubes. To correct the situation, Maine Yankee is considering the installation of welded sleeves (involving the insertion of a partial new tube Note A - Investments in Nuclear Power Companies - Continued - ------------------------------------------------ inside the existing tube) on all of the steam generator tubes. Assuming Maine Yankee proceeds with sleeving, the station would be expected to return to service by approximately the end of 1995. Similar repairs have been undertaken at other nuclear plants in the United States and abroad, but not on the scale proposed at Maine Yankee. The cost of sleeving could total approximately $40 million (the Company's share of approximately $8 million would be charged to purchased power expense). A final decision regarding sleeving is not expected until late May 1995. Note B - Hazardous Waste - ------------------------ The Federal Comprehensive Environmental Response, Compensation and Liability Act, more commonly known as the "Superfund" law, imposes strict, joint and several liability, regardless of fault, for remediation of property contaminated with hazardous substances. A number of states, including Massachusetts, have enacted similar laws. The electric utility industry typically utilizes and/or generates in its operations a range of potentially hazardous products and by-products. New England Electric System subsidiaries currently have in place an environmental audit program intended to enhance compliance with existing federal, state, and local requirements regarding the handling of potentially hazardous products and by-products. The Company has been named as a potentially responsible party (PRP) by either the U.S. Environmental Protection Agency or the Massachusetts Department of Environmental Protection for six sites at which hazardous waste is alleged to have been disposed. Private parties have also contacted or initiated legal proceedings against the Company regarding hazardous waste cleanup. The Company is currently aware of other sites, and may in the future become aware of additional sites, that it may be held responsible for remediating. Predicting the potential costs to investigate and remediate hazardous waste sites continues to be difficult. There are also significant uncertainties as to the portion, if any, of the investigation and remediation costs of any particular hazardous waste site that may ultimately be borne by the Company. Where Note B - Hazardous Waste- Continued - ------------------------ appropriate, the Company intends to seek recovery from its insurers and from other PRPs, but it is uncertain whether and to what extent such efforts would be successful. The Company believes that hazardous waste liabilities for all sites of which it is aware will not be material to its financial position. Note C - Purchased Power Contract Dispute - ----------------------------------------- In October 1994, the Company was sued by Milford Power Limited Partnership (MPLP), a venture of Enron Corporation and Jones Capital that owns a 149 MW gas-fired power plant in Milford, Massachusetts. The Company purchases 56 percent of the power output of the facility under a long-term contract with MPLP. The suit alleges that the Company has engaged in a scheme to cause MPLP and its power plant to fail and has prevented MPLP from finding a long-term buyer for the remainder of the facility's output. The complaint includes allegations that the Company has violated the Federal Racketeer Influenced and Corrupt Organizations Act, engaged in unfair or deceptive acts in trade or commerce, and breached contracts. MPLP also asserts that the Company deliberately misled regulatory bodies concerning the Manchester Street repowering project. MPLP seeks compensatory damages in an unspecified amount, as well as treble damages. The Company believes that the allegations of wrongdoing are without merit. The Company has filed counterclaims and crossclaims against MPLP, Enron Corporation, and Jones Capital, seeking monetary damages and termination of the purchased power contract. MPLP also intervened in the Company's recent rate filing making similar allegations to those asserted in MPLP's lawsuit. MPLP also intervened in a recent Massachusetts Electric Company rate filing. Note D - New Accounting Standard - -------------------------------- In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of (FAS 121), effective for fiscal year 1996. This standard clarifies when and how to recognize an impairment of long- lived assets. In addition, FAS 121 requires that all regulatory assets be written off unless they continue to meet the criteria for Note D - New Accounting Standard - Continued - -------------------------------- initially recording such regulatory assets. In order to be initially recorded, a regulatory asset must have a high probability of future recovery. However, once written off, a regulatory asset can be restored if it again becomes probable of recovery. The impact of this standard will be driven by the facts and circumstances that exist when the standard is adopted and thereafter. Note E - ------ In the opinion of the Company, these statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of the results of its operations for the periods presented and should be considered in conjunction with the notes to the financial statements in the Company's 1994 Annual Report. Item 2. Management's Discussion and Analysis of Financial --------------------------------------------------------- Condition and Results of Operations ----------------------------------- This section contains management's assessment of New England Power Company's financial condition and the principal factors having an impact on the results of operations. This discussion should be read in conjunction with the Company's financial statements and footnotes and the 1994 Annual Report on Form 10-K. Earnings - -------- Net income for the first three months of 1995 decreased $18 million from the corresponding period in 1994. The decrease in first quarter earnings is due to: (a) increased purchased power costs resulting from overhauls and refueling shutdowns of partially-owned generating units, (b) increased maintenance of wholly-owned generating units, and (c) decreased revenues due to decreased sales and increased credits to the Company's retail affiliates. These decreases in net income were partially offset by a reduction in the Company's Seabrook 1 nuclear unit (Seabrook 1) amortization in connection with its W-95 rate agreement. Maine Yankee Atomic Power Company - --------------------------------- The Company has a 20 percent ownership interest in the Maine Yankee Atomic Power Company (Maine Yankee) which owns an 880 megawatt nuclear generating station in Wiscasset, Maine. Since January 1995, the station has been shut down for refueling and inspection. During the inspection, Maine Yankee detected substantial deterioration of its steam generator tubes. To correct the situation, Maine Yankee is considering the installation of welded sleeves (involving the insertion of a partial new tube inside the existing tube) on all of the steam generator tubes. Assuming Maine Yankee proceeds with sleeving, the station would be expected to return to service by approximately the end of 1995. Similar repairs have been undertaken at other nuclear plants in the United States and abroad, but not on the scale proposed at Maine Yankee. The cost of sleeving could total approximately $40 million (the Company's share of approximately $8 million would be charged to purchased power expense). A final decision regarding sleeving is not expected until late May 1995. Rate Activity - ------------- In February 1995, the Federal Energy Regulatory Commission (FERC) approved a rate agreement filed by the Company. Under the agreement, which became effective January 1995, the Company's base rates are frozen until 1997. Before this rate agreement, the Company's rate structure contained two surcharges which were recovering the costs of a coal conversion project and a portion of the Company's investment in Seabrook 1. Under the rate agreement, these two surcharges, which were due to expire in mid-1995, have been rolled into base rates. The agreement also allows for full recovery of costs associated with the Manchester Street Station repowering project, which is scheduled for completion later this year. In addition, the agreement allows the Company to recover approximately $50 million of deferred costs associated with terminated purchased power contracts and postretirement benefits other than pensions (PBOPs) over seven years. The agreement also provides for full recovery of currently incurred PBOP costs commencing in 1995. The agreement further provides for the recovery over three years of $27 million of costs related to the dismantling of The Narragansett Electric Company's (Narragansett Electric) retired generating station and the replacement of a turbine rotor at one of the Company's generating units. The agreement also increases the Company's recovery of depreciation expense by approximately $8 million annually to recognize costs that will be incurred upon the eventual dismantling of its Brayton Point and Salem Harbor generating plants. Under the agreement, approximately $15 million of the $38 million in Seabrook 1 costs due to be recovered in 1995 pursuant to a 1988 settlement agreement will be deferred and recovered in 1996. Finally, the agreement provided that the Company would reimburse its wholesale customers for discounts provided by these customers under service extension discount (SED) programs. Under these programs, retail customers are entitled to such discounts only if they have signed an agreement not to purchase power from another supplier or generate any additional power themselves for a three to five year period. Reimbursements in 1995 are expected to total $13 million. The FERC's approval of this rate agreement applies to all of the Company's customers except the Town of Norwood, Massachusetts and the Milford Power Limited Partnership, who intervened in the rate case. A separate hearing will be conducted to determine the appropriate rate to charge these two parties, who together represent less than 2 percent of the Company's sales. Operating Revenue - ----------------- The following table summarizes the changes in operating revenue: Increase (Decrease) in Operating Revenue First Quarter ------------- 1995 vs 1994 ------------- (In Millions) Sales decrease $(3) Narragansett integrated facilities credit (4) SED reimbursements (3) Fuel recovery 1 Other 1 --- $(8) === The decrease in sales in the first three months of 1995 reflects the effects of a decrease in peak demands due to unusually mild weather conditions in the first quarter of 1995. The entire output of Narragansett's generating capacity is made available to the Company. Narragansett receives a credit on its purchased power bill from the Company for its fuel costs and other generation and transmission related costs. The increased credit reflects increased costs associated with a new transmission line and with the dismantlement of Narragansett's previously retired South Street generating facility. See "Rate Activity" section for a discussion of SED reimbursements. Operating Expenses - ------------------ The following table summarizes the changes in operating expenses: Increase (Decrease) in Total Operating Expenses First Quarter ------------- 1995 vs 1994 ------------- (In Millions) Fuel costs $ 1 Purchased energy excluding fuel 11 Other operation and maintenance 15 Depreciation and amortization (5) Taxes (14) ---- $ 8 ==== Total fuel costs represents fuel for generation and the portion of purchased electric energy permitted to be recovered through the Company's fuel adjustment clause. Purchased energy excluding fuel represents the remainder of purchased electric energy costs. The increase in purchased energy excluding fuel reflects overhauls and refueling shutdowns by partially-owned nuclear power suppliers in the first quarter of 1995 as well as amortization of previously deferred purchase power termination costs. The increase in other operation and maintenance expense during the first quarter reflects increased production maintenance costs associated with overhauls, increased PBOP costs, and general increases in other areas. Increased PBOP costs include amortization of costs previously deferred under a prior FERC settlement, as well as PBOP costs incurred on a current basis. The decrease in depreciation and amortization is due to decreased amortization of the Seabrook 1 nuclear power plant in accordance with the Company's 1995 rate agreement, partially offset by the effects of increased depreciation rates approved in the Company's 1995 rate agreement and depreciation of new plant expenditures. The decrease in taxes for the first three months of 1995 is primarily due to decreased income. Allowance For Funds Used During Construction (AFDC) - -------------------------------------------------- AFDC increased for the first quarter of 1995 due to increased construction work in progress, principally associated with the repowering of the Manchester Street Station, scheduled to commence operation in late 1995 (see "Utility Plant Expenditures and Financings" section). Interest Expense - ---------------- The increase in interest expense is primarily due to increased long-term and short-term debt balances and higher interest rates in the first quarter of 1995. Competitive Conditions - ---------------------- The electric utility business is being subjected to increasing competitive pressures, stemming from a combination of trends, including increasing electric rates, improved technologies, and new regulations and legislation intended to foster competition. See the Company's Annual Report on Form 10- K for the year ended December 31, 1994. On March 29, 1995, the FERC issued a notice of proposed rule-making in which it stated that recovery in rates of legitimate and verifiable stranded costs should be allowed and that direct assignment of stranded costs to departing customers is the appropriate method for recovery of costs stranded as the result of wholesale competition. Under the FERC policy proposal, costs stranded as a result of retail competition would be subject to state commission review if the state commission has the necessary statutory authority, and subject to FERC review if the state commission does not have such authority. A final decision is expected in late 1995 or early 1996. In February 1995, the Massachusetts Department of Public Utilities (MDPU) initiated a proceeding regarding the structure and regulation of the electric utility industry. Massachusetts Electric Company (Massachusetts Electric), the Company's retail affiliate, along with a coalition of environmental and independent power producer groups, filed a set of principles which the coalition proposes to be the basis for restructuring. The proposed principles included provisions to allow gradually increased customer choice while allowing utilities to recover the cost of their past commitments, as well as provisions for protecting residential customers, encouraging renewable resources and energy conservation, and honoring contracts with independent power producers. Hearings are underway. Massachusetts Electric cannot predict what action the MDPU may take in this proceeding or when such action would take place. The Rhode Island Public Utilities Commission and the New Hampshire Public Utilities Commission have also begun considering industry restructuring issues, including the recovery of stranded costs. New Accounting Standard - ----------------------- In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for Long- Lived Assets to Be Disposed Of (FAS 121), effective for fiscal year 1996. This standard clarifies when and how to recognize an impairment of long-lived assets. In addition, FAS 121 requires that all regulatory assets be written off unless they continue to meet the criteria for initially recording such regulatory assets. In order to be initially recorded, a regulatory asset must have a high probability of future recovery. However, once written off, a regulatory asset can be restored if it again becomes probable of recovery. The impact of this standard will be driven by the facts and circumstances that exist when the standard is adopted and thereafter. Utility Plant Expenditures and Financings - ----------------------------------------- Cash expenditures for utility plant totaled $40 million for the first three months of 1995 including $19 million related to the Company's share of the Manchester Street Station repowering project. The funds necessary for utility plant expenditures during the period were provided by net cash from operating activities, after the payment of dividends. In the first quarter of 1995, the Company issued $25 million of long-term debt at interest rates ranging from 7.40 percent to 7.94 percent. In addition, the Company refinanced $10 million of variable rate mortgage bonds in the first quarter of 1995. The Company plans to issue an additional $25 million of long-term debt by the end of 1995. At March 31, 1995, the Company had $92 million of short-term debt outstanding including $84 million in the form of commercial paper borrowings. At March 31, 1995, the Company had lines of credit and bond purchase facilities with banks totaling $490 million which are available to provide liquidity support for commercial paper borrowings and for $342 million of the Company's outstanding variable rate mortgage bonds in tax-exempt commercial paper mode and for other corporate purposes. There were no borrowings under these lines of credit at March 31, 1995. For the twelve-month period ending March 31, 1995, the ratio of earnings to fixed charges was 5.36. PART II. OTHER INFORMATION Item 1. Legal Proceedings - -------------------------- Information concerning Federal Energy Regulatory Commission approval of a rate agreement filed by the Company, discussed in Part I of this report in Management's Discussion and Analysis of Financial Condition and Results of Operations, is incorporated herein by reference and made a part hereof. Information concerning a lawsuit filed against the Company by Milford Power Limited Partnership on October 28, 1994, discussed in Note C of Notes of Unaudited Financial Statements, is incorporated herein by reference and made a part hereof. Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- The Company is filing the following revised exhibit for incorporation by reference into its registration statements on Form S-3, Commission file Nos. 33-48257, 33-48897, and 33-49193: 12 Statement re computation of ratios The Company is filing Financial Data Schedules. The Company filed reports on Form 8-K dated January 12, 1995 and February 8, 1995, each containing Item 5, Other Events. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report on Form 10-Q for the quarter ended March 31, 1995 to be signed on its behalf by the undersigned thereunto duly authorized. NEW ENGLAND POWER COMPANY s/ Michael E. Jesanis Michael E. Jesanis, Treasurer, Authorized Officer, and Principal Financial Officer Date: May 11, 1995 EX-99 2 EXHIBIT INDEX EXHIBIT INDEX ============= EXHIBIT NUMBER DESCRIPTION PAGE - -------------- ----------- ---- 12 Statement re Computation Filed Herewith of Ratios 27 Financial Data Schedule Filed Herewith EX-99 3 EXHIBIT 12 NEW ENGLAND POWER COMPANY Computation of Ratio of Earnings to Fixed Charges (SEC Coverage) (Unaudited)
12 Months Ended March 31, 1995 Years Ended December 31, Actual -------------------------------------------------------------- (Unaudited) 1994 1993 1992 1991 1990 -------------- ---- ---- ---- ---- ---- (In Thousands) Net Income $131,166 $149,373 $141,468 $134,151 $134,747 $222,219 - ---------- Less undistributed income of nuclear power companies (99) 6 544 320 (240) (133) -------- -------- -------- -------- -------- -------- 131,265 149,367 140,924 133,831 134,987 222,352 Add income taxes and fixed charges - ---------------------------------- Current federal income taxes 50,800 61,350 62,454 64,417 62,182 50,543 Deferred federal income taxes 19,371 20,501 17,745 4,741 11,134 38,367 Investment tax credits - net (3,586) (3,577) (2,606) (1,328) (7,732) (26,026) State income taxes 15,073 17,328 17,242 14,596 15,526 21,867 Interest on long-term debt 40,797 38,711 45,837 59,382 67,426 67,385 Interest on short-term debt and other interest 4,032 1,956 5,427 2,071 2,490 6,900 Estimated interest component of rentals 3,573 3,635 3,851 4,121 4,115 1,447 -------- -------- -------- -------- -------- -------- Net earnings available for fixed charges $261,325 $289,271 $290,874 $281,831 $290.129 $382,825 ======== ======== ======== ======== ======== ======== Fixed charges: Interest on long-term debt $ 40,797 $ 38,711 $ 45,837 $ 59,382 $ 67,426 $ 67,385 Interest on short-term debt and other interest 4,032 1,956 5,427 2,071 2,490 6,900 Estimated interest component of rentals 3,573 3,635 3,851 4,121 4,115 1,447 -------- -------- -------- -------- -------- -------- Total fixed charges $ 48,402 $ 44,302 $ 55,115 $ 65,574 $ 74,031 $ 75,732 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges 5.40 6.53 5.28 4.30 3.92 5.06 - ----------------------------------
EX-27 4 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND RELATED STATEMENTS OF INCOME, RETAINED EARNINGS AND CASH FLOWS OF NEW ENGLAND POWER COMPANY, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 DEC-30-1995 DEC-31-1994 MAR-31-1995 MAR-31-1994 3-MOS 3-MOS PER-BOOK PER-BOOK 1,892,205 0 69,438 0 355,781 0 294,470 0 0 0 2,611,894 0 128,998 0 374,829 0 372,250 0 876,077 0 0 0 60,516 0 710,389 0 91,875 0 0 0 0 0 10,000 0 0 0 0 0 0 0 863,037 0 2,611,894 0 391,118 399,574 19,272 33,182 331,757 309,519 351,029 342,701 40,089 56,873 1,439 692 41,528 57,565 10,546 8,376 30,982 49,189 858 866 EARNINGS-AVAILABLE-FOR-COMM> 30,124 48,323 30,637 24,187 11,238 9,152 70,947 107,950 0 0 0 0 Total deferred charges includes other assets and accrued Yankee Atomic costs. Short-term notes includes commercial paper obligations and notes payable to associated companies. Per share data is not relevant because the Company's common stock is wholly owned by New England Electric System. -----END PRIVACY-ENHANCED MESSAGE-----