NU Announces First-Quarter Earnings

Apr 24, 2001, 01:00 ET from Northeast Utilities (NU)

    HARTFORD, Conn., April 24 /PRNewswire Interactive News Release/ --
 Northeast Utilities (NU) today announced first-quarter 2001 earnings before
 the cumulative effect of an accounting change of $134.6 million, or $0.93 per
 share, compared with earnings of $74.6 million, or $0.55 per share, for the
 same period of 2000.
     Including the accounting change, a $22.4 million charge related to the
 adoption of SFAS-133 (Accounting for Derivative Instruments and Hedging
 Activities), NU earned $112.2 million, or $0.78 per share, in the first
 quarter of 2001.
     Michael G. Morris, NU chairman, president and chief executive officer,
 said the first-quarter results included two major nonrecurring items, in
 addition to the adoption of SFAS-133.  NU recognized an after-tax gain of
 $124.8 million, or 87 cents per share, related to the sale of the Millstone
 Nuclear Station to Dominion Resources, Inc. on March 31, 2001.  The gain
 related primarily to the sale of the Millstone 3 interests of Public Service
 Company of New Hampshire (PSNH) and several unaffiliated owners, not to the
 Millstone interests of The Connecticut Light and Power Company (CL&P) and
 Western Massachusetts Electric Company (WMECO).  The net gain from the sale of
 the CL&P and WMECO interests in Millstone was used to write down the two
 companies' stranded costs.  CL&P, WMECO and PSNH are all NU operating
 subsidiaries.
     Additionally, NU recorded a non-cash charge of $43.4 million, or 30 cents
 a share, related to the forward purchase of 10.1 million NU common shares in
 December 1999 and January 2000.  Those shares were purchased at an average
 price of $21.26.  Under new accounting rules, NU was required to write down
 the difference between $21.26 and the price at which NU shares closed on March
 30, 2001 ($17.38), plus carrying charges for the first quarter.  NU is closing
 out that forward share purchase this week with the proceeds of the Millstone
 sale and financing related to industry restructuring and expects to record a
 gain or loss in the second quarter of 2001 relating to the difference between
 $17.38 and the closing price of NU shares the day the forward purchase is
 closed.
     Absent the nonrecurring gains and losses noted above, NU earned $53.2
 million, or $0.36 per share, in the first quarter of the year.  There were no
 significant nonrecurring items in the first quarter of 2000.   Morris said the
 earnings of NU's regulated subsidiaries were reduced in 2001 by the scheduled
 refueling of the Millstone 3 nuclear plant, which began February 3 and ended
 March 31.  The refueling resulted in higher costs and lower revenues for CL&P
 and WMECO, costing NU approximately $19 million after-tax, or $0.13 per share,
 compared with the first quarter of 2000.  Regulated business operating
 earnings also fell by nearly $7 million, or $0.05 per share, as a result of a
 5 percent rate reduction that took effect at PSNH on October 1, 2000.
     On the other hand, Yankee Energy Services, Inc., parent of Connecticut's
 largest natural gas distribution company, earned $15.6 million in the first
 quarter of 2001.  Yankee Energy merged with NU on March 1, 2000 and in March
 2000 it earned $1.9 million.  The full quarter of Yankee Energy results added
 approximately $0.10 per share to earnings.
     Operation and maintenance costs for the regulated electric companies
 declined slightly, despite an after-tax charge of approximately $4 million, or
 $0.03 per share, for NU's Voluntary Separation Program under which
 approximately 340 NU employees accepted an early retirement offer.  Those
 employees are retiring between March 1, 2001 and February 28, 2002 and the
 resulting savings are expected to benefit year-over-year financial results
 over the next four quarters, Morris said.
     Results at NU's unregulated energy companies were also hurt by nuclear
 refueling outages.   Extended refueling outages at Millstone 3 and the
 Seabrook nuclear plant caused Select Energy, Inc., NU's unregulated energy
 marketing subsidiary, to have to acquire energy for resale at higher costs.
 As a result, NU's unregulated energy businesses lost $4.2 million, or $0.03
 per share, in the first quarter of 2001, compared with a profit of $10
 million, or $0.07 per share, in the first quarter of 2000.
     Morris said NU continues to project operating earnings of between $1.40
 per share and $1.60 per share in 2001.  That estimate excludes nonrecurring
 items.
     NU operates New England's largest energy delivery system with
 approximately 1.77 million electric customers in Connecticut, New Hampshire
 and Massachusetts and 187,000 natural gas customers in Connecticut, and is one
 of the largest competitive energy suppliers in New England.  With the closing
 out of the forward share purchase noted earlier, NU will reduce its
 outstanding share count from approximately 144 million shares to approximately
 134 million shares.
 
     This press release includes forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995, which are statements
 of future expectations and not facts.  Actual results or developments might
 differ materially from those included in the forward-looking statements
 because of factors such as competition and industry restructuring, changes in
 economic conditions, changes in historical weather patterns, changes in laws,
 regulations or regulatory policies, developments in legal or public policy
 doctrines, technological developments and other presently unknown or
 unforeseen factors. Other risk factors are detailed from time to time in NU's
 reports to the Securities and Exchange Commission.
 
 
                      NORTHEAST UTILITIES AND SUBSIDIARIES
                                FINANCIAL REPORT
 
                             Three Months Ended        Twelve Months Ended
                                  March 31,                 March 31,
                             2001         2000         2001           2000
                              (Thousands of Dollars, Except Share Information)
 
     Operating Revenues  $1,800,544    $1,382,321   $6,294,843    $4,810,165
     Earnings for
      common shares:
     Before extraordinary
      loss and cumulative
      effect of accounting
      changes,net of taxes $134,595       $74,587     $265,303       $90,359
     Extraordinary (loss),
      net of tax benefits
      of $169,562                --            --    (233,881)            --
     Cumulative effect of
      accounting changes,
      net of tax benefits
      of $14,908           (22,432)            --     (22,432)            --
 
     Total Net Income      $112,163       $74,587       $8,990       $90,359
 
     Fully Diluted Earnings
      Per Common Share:
     Before extraordinary
      loss and cumulative
      effect of accounting
      changes, net of taxes   $0.93         $0.55        $1.84         $0.68
     Extraordinary (loss),
      net of taxes               --            --       (1.63)            --
     Cumulative effect of
      accounting changes,
      net of taxes           (0.15)            --       (0.15)            --
 
     Total Fully Diluted
      Earnings Per
      Common Share            $0.78         $0.55        $0.06         $0.68
 
     Common Shares
      Outstanding
      (fully diluted)   144,314,339   136,229,530  144,046,071   133,088,092
 
 
 
                            Northeast Utilities and
                                  Subsidiaries
 
                           Consolidated Statements of
                                     Income
 
 
                          Three Months Ended          Twelve Months Ended
                               March 31,                   March 31,
                           2001           2000         2001           2000
                              (Thousands of Dollars, Except Share Information)
 
 
     Operating Revenues  $1,800,544     $1,382,321   $6,294,843     $4,810,165
     Operating
      Expenses:
       Operation
       Fuel,purchased
       and net
       interchange power  1,166,972        768,372    3,719,825      2,243,670
       Other                182,796        201,461      830,952        863,704
       Maintenance           88,681         50,768      293,797        294,036
       Depreciation          60,629         60,392      240,035        278,349
       Amortization of
        regulatory
        assets, net         719,856         45,132      950,863        579,043
       Federal and
        state income
        taxes                54,381         62,425      221,989        220,868
       Taxes other than
        income taxes         75,887         58,362      256,112        249,101
       Gain on sale of
        utility plant      (653,872)         -         (653,297)      (308,914)
            Total
             operating
             expenses     1,695,330      1,246,912    5,860,276      4,419,857
     Operating Income       105,214        135,409      434,567        390,308
     Other Income:
       Gain on sale of
        utility plant       202,159          -          202,159          -
       Loss on share
        repurchase
        contracts           (43,443)         -          (43,443)         -
       Nuclear related
        costs                 2,140         (2,801)     (12,966)       (72,496)
       Other, net            (1,333)         7,474        4,091        (19,468)
       Minority
        interest in
        loss of
        subsidiary           (2,325)        (2,325)      (9,300)        (9,300)
       Income taxes         (57,918)         7,836        2,552         83,714
        Other income,
         net                 99,280         10,184      143,093        (17,550)
        Income before
         interest charges   204,494        145,593      577,660        372,758
     Interest Charges:
       Interest on
        long-term debt       43,668         55,884      188,481        246,517
       Other interest        23,527         10,364      111,768         14,309
           Interest
            charges,
            net              67,195         66,248      300,249        260,826
           Income after
            interest
            charges         137,299         79,345      277,411        111,932
     Preferred
      Dividends of
      Subsidiaries            2,704          4,758       12,108         21,573
       Income before
        extraordinary
        loss and cumulative
        effect of accounting
        changes, net
        of taxes            134,595         74,587      265,303         90,359
     Extraordinary
      (loss), net of
      tax benefits
       of $169,562            -              -         (233,881)         -
     Cumulative effect
      of accounting
      changes,
      net of tax
      benefits of
      $14,908               (22,432)         -          (22,432)         -
     Net Income            $112,163        $74,587       $8,990        $90,359
     Fully Diluted
      Earnings Per
      Common Share:
       Before
        extraordinary
        loss, net of
        taxes                 $0.93          $0.55        $1.84          $0.68
       Extraordinary
        (loss), net of
        taxes                  -              -           (1.63)          -
       Cumulative
        effect of
        accounting
        changes,
        net of taxes          (0.15)          -           (0.15)          -
     Total Fully
      Diluted Earnings
      Per Common Share        $0.78          $0.55        $0.06          $0.68
     Common Shares
      Outstanding
      (fully diluted)   144,314,339    136,229,530  144,046,071    133,088,092
 
 
 
                            Northeast Utilities and Subsidiaries
                                Consolidated Balance Sheets
 
                                                            March 31,
                                                      2001           2000
                                                     (Thousands of Dollars)
     ASSETS
 
     Utility Plant, at cost:
       Electric                                    $6,009,696     $9,237,679
       Gas and other                                  860,351        826,495
                                                    6,870,047     10,064,174
     Less: Accumulated provision for depreciation   3,487,588      6,373,365
                                                    3,382,459      3,690,809
       Unamortized PSNH acquisition costs                  --        317,332
       Construction work in progress                  206,851        179,516
       Nuclear fuel, net                               29,264        113,378
 
     Total net utility plant                        3,618,574      4,301,035
 
     Other Property and Investments:
       Nuclear decommissioning trusts, at market       57,170        717,246
       Investments in regional nuclear generating
        companies, at equity                           62,480         82,456
       Other, at cost                                 170,980        108,753
                                                      290,630        908,455
     Current Assets:
       Cash and cash equivalents                    1,472,454        369,738
       Investments in securitizable assets            256,431         80,742
       Receivables, net                               532,573        448,356
       Unbilled revenues                              118,927         88,918
       Fuel, materials and supplies, at average cost   94,195        174,442
       Recoverable energy costs, net - current portion    337         85,052
       Prepayments and other                          139,384        108,338
                                                    2,614,301      1,355,586
 
     Deferred Charges:
       Regulatory assets                            4,031,123      3,596,828
       Unamortized debt expense                        40,735         43,839
       Goodwill and other purchased
        intangible assets                             334,512        345,372
       Prepaid pension                                157,455         63,003
       Other                                          158,605        126,890
                                                    4,722,430      4,175,932
 
     Total Assets                                 $11,245,935    $10,741,008
 
 
                                                              March 31,
                                                         2001           2000
                                                       (Thousands of Dollars)
 
     CAPITALIZATION AND LIABILITIES
 
     Capitalization:
      Common shareholders' equity:
      Common shares, $5.00 par value - authorized
      225,000,000 shares; 148,807,333 shares issued and
      143,978,260 shares outstanding in 2001 and
      148,546,234 shares issued and 143,150,550 shares
      outstanding in 2000                            $744,037       $742,731
     Capital surplus, paid in                       1,086,918      1,102,278
     Deferred contribution plan - employee stock
      ownership plan                                (111,264)      (124,626)
     Retained earnings                                593,646        642,092
     Accumulated other comprehensive income             5,745          1,524
 
       Total common shareholders' equity            2,319,082      2,363,999
     Preferred stock not subject
      to mandatory redemption                         116,200        136,200
     Preferred stock subject
      to mandatory redemption                              --        119,789
     Long-term debt                                 2,148,297      2,443,989
 
       Total capitalization                         4,583,579      5,063,977
 
     Rate reduction bonds                           1,438,400             --
     Minority Interest in Consolidated Subsidiary     100,000        100,000
 
     Obligations Under Capital Leases                  17,363         53,126
 
     Current Liabilities:
      Notes payable to banks                        1,111,416        984,000
      Long-term debt and preferred stock -
       current portion                                243,859        346,123
      Obligations under capital leases -
       current portion                                144,840        115,285
      Accounts payable                                653,281        437,492
      Payable to Millstone 3 joint owners              84,512             --
      Accrued taxes                                   376,944        130,252
      Accrued interest                                 58,753         56,088
      Other                                           136,163        127,338
 
                                                    2,809,768      2,196,578
 
     Deferred Credits and Other Long-term Liabilities:
      Accumulated deferred income taxes             1,358,660      1,721,263
      Accumulated deferred investment tax credits     131,760        144,882
      Decommissioning obligation - Millstone 1              -        686,609
      Deferred contractual obligations                237,108        341,983
      Other                                           569,297        432,590
 
                                                    2,296,825      3,327,327
 
 
     Total Capitalization and Liabilities         $11,245,935    $10,741,008
 
 
     The data contained in this report is preliminary and is unaudited. This
     report is being submitted for the sole purpose of providing information to
     present shareholders about the Northeast Utilities System and is not a
     representation, prospectus, or intended for use in connection with any
     purchase or sale of securities.
 
 
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SOURCE Northeast Utilities (NU)
    HARTFORD, Conn., April 24 /PRNewswire Interactive News Release/ --
 Northeast Utilities (NU) today announced first-quarter 2001 earnings before
 the cumulative effect of an accounting change of $134.6 million, or $0.93 per
 share, compared with earnings of $74.6 million, or $0.55 per share, for the
 same period of 2000.
     Including the accounting change, a $22.4 million charge related to the
 adoption of SFAS-133 (Accounting for Derivative Instruments and Hedging
 Activities), NU earned $112.2 million, or $0.78 per share, in the first
 quarter of 2001.
     Michael G. Morris, NU chairman, president and chief executive officer,
 said the first-quarter results included two major nonrecurring items, in
 addition to the adoption of SFAS-133.  NU recognized an after-tax gain of
 $124.8 million, or 87 cents per share, related to the sale of the Millstone
 Nuclear Station to Dominion Resources, Inc. on March 31, 2001.  The gain
 related primarily to the sale of the Millstone 3 interests of Public Service
 Company of New Hampshire (PSNH) and several unaffiliated owners, not to the
 Millstone interests of The Connecticut Light and Power Company (CL&P) and
 Western Massachusetts Electric Company (WMECO).  The net gain from the sale of
 the CL&P and WMECO interests in Millstone was used to write down the two
 companies' stranded costs.  CL&P, WMECO and PSNH are all NU operating
 subsidiaries.
     Additionally, NU recorded a non-cash charge of $43.4 million, or 30 cents
 a share, related to the forward purchase of 10.1 million NU common shares in
 December 1999 and January 2000.  Those shares were purchased at an average
 price of $21.26.  Under new accounting rules, NU was required to write down
 the difference between $21.26 and the price at which NU shares closed on March
 30, 2001 ($17.38), plus carrying charges for the first quarter.  NU is closing
 out that forward share purchase this week with the proceeds of the Millstone
 sale and financing related to industry restructuring and expects to record a
 gain or loss in the second quarter of 2001 relating to the difference between
 $17.38 and the closing price of NU shares the day the forward purchase is
 closed.
     Absent the nonrecurring gains and losses noted above, NU earned $53.2
 million, or $0.36 per share, in the first quarter of the year.  There were no
 significant nonrecurring items in the first quarter of 2000.   Morris said the
 earnings of NU's regulated subsidiaries were reduced in 2001 by the scheduled
 refueling of the Millstone 3 nuclear plant, which began February 3 and ended
 March 31.  The refueling resulted in higher costs and lower revenues for CL&P
 and WMECO, costing NU approximately $19 million after-tax, or $0.13 per share,
 compared with the first quarter of 2000.  Regulated business operating
 earnings also fell by nearly $7 million, or $0.05 per share, as a result of a
 5 percent rate reduction that took effect at PSNH on October 1, 2000.
     On the other hand, Yankee Energy Services, Inc., parent of Connecticut's
 largest natural gas distribution company, earned $15.6 million in the first
 quarter of 2001.  Yankee Energy merged with NU on March 1, 2000 and in March
 2000 it earned $1.9 million.  The full quarter of Yankee Energy results added
 approximately $0.10 per share to earnings.
     Operation and maintenance costs for the regulated electric companies
 declined slightly, despite an after-tax charge of approximately $4 million, or
 $0.03 per share, for NU's Voluntary Separation Program under which
 approximately 340 NU employees accepted an early retirement offer.  Those
 employees are retiring between March 1, 2001 and February 28, 2002 and the
 resulting savings are expected to benefit year-over-year financial results
 over the next four quarters, Morris said.
     Results at NU's unregulated energy companies were also hurt by nuclear
 refueling outages.   Extended refueling outages at Millstone 3 and the
 Seabrook nuclear plant caused Select Energy, Inc., NU's unregulated energy
 marketing subsidiary, to have to acquire energy for resale at higher costs.
 As a result, NU's unregulated energy businesses lost $4.2 million, or $0.03
 per share, in the first quarter of 2001, compared with a profit of $10
 million, or $0.07 per share, in the first quarter of 2000.
     Morris said NU continues to project operating earnings of between $1.40
 per share and $1.60 per share in 2001.  That estimate excludes nonrecurring
 items.
     NU operates New England's largest energy delivery system with
 approximately 1.77 million electric customers in Connecticut, New Hampshire
 and Massachusetts and 187,000 natural gas customers in Connecticut, and is one
 of the largest competitive energy suppliers in New England.  With the closing
 out of the forward share purchase noted earlier, NU will reduce its
 outstanding share count from approximately 144 million shares to approximately
 134 million shares.
 
     This press release includes forward-looking statements within the meaning
 of the Private Securities Litigation Reform Act of 1995, which are statements
 of future expectations and not facts.  Actual results or developments might
 differ materially from those included in the forward-looking statements
 because of factors such as competition and industry restructuring, changes in
 economic conditions, changes in historical weather patterns, changes in laws,
 regulations or regulatory policies, developments in legal or public policy
 doctrines, technological developments and other presently unknown or
 unforeseen factors. Other risk factors are detailed from time to time in NU's
 reports to the Securities and Exchange Commission.
 
 
                      NORTHEAST UTILITIES AND SUBSIDIARIES
                                FINANCIAL REPORT
 
                             Three Months Ended        Twelve Months Ended
                                  March 31,                 March 31,
                             2001         2000         2001           2000
                              (Thousands of Dollars, Except Share Information)
 
     Operating Revenues  $1,800,544    $1,382,321   $6,294,843    $4,810,165
     Earnings for
      common shares:
     Before extraordinary
      loss and cumulative
      effect of accounting
      changes,net of taxes $134,595       $74,587     $265,303       $90,359
     Extraordinary (loss),
      net of tax benefits
      of $169,562                --            --    (233,881)            --
     Cumulative effect of
      accounting changes,
      net of tax benefits
      of $14,908           (22,432)            --     (22,432)            --
 
     Total Net Income      $112,163       $74,587       $8,990       $90,359
 
     Fully Diluted Earnings
      Per Common Share:
     Before extraordinary
      loss and cumulative
      effect of accounting
      changes, net of taxes   $0.93         $0.55        $1.84         $0.68
     Extraordinary (loss),
      net of taxes               --            --       (1.63)            --
     Cumulative effect of
      accounting changes,
      net of taxes           (0.15)            --       (0.15)            --
 
     Total Fully Diluted
      Earnings Per
      Common Share            $0.78         $0.55        $0.06         $0.68
 
     Common Shares
      Outstanding
      (fully diluted)   144,314,339   136,229,530  144,046,071   133,088,092
 
 
 
                            Northeast Utilities and
                                  Subsidiaries
 
                           Consolidated Statements of
                                     Income
 
 
                          Three Months Ended          Twelve Months Ended
                               March 31,                   March 31,
                           2001           2000         2001           2000
                              (Thousands of Dollars, Except Share Information)
 
 
     Operating Revenues  $1,800,544     $1,382,321   $6,294,843     $4,810,165
     Operating
      Expenses:
       Operation
       Fuel,purchased
       and net
       interchange power  1,166,972        768,372    3,719,825      2,243,670
       Other                182,796        201,461      830,952        863,704
       Maintenance           88,681         50,768      293,797        294,036
       Depreciation          60,629         60,392      240,035        278,349
       Amortization of
        regulatory
        assets, net         719,856         45,132      950,863        579,043
       Federal and
        state income
        taxes                54,381         62,425      221,989        220,868
       Taxes other than
        income taxes         75,887         58,362      256,112        249,101
       Gain on sale of
        utility plant      (653,872)         -         (653,297)      (308,914)
            Total
             operating
             expenses     1,695,330      1,246,912    5,860,276      4,419,857
     Operating Income       105,214        135,409      434,567        390,308
     Other Income:
       Gain on sale of
        utility plant       202,159          -          202,159          -
       Loss on share
        repurchase
        contracts           (43,443)         -          (43,443)         -
       Nuclear related
        costs                 2,140         (2,801)     (12,966)       (72,496)
       Other, net            (1,333)         7,474        4,091        (19,468)
       Minority
        interest in
        loss of
        subsidiary           (2,325)        (2,325)      (9,300)        (9,300)
       Income taxes         (57,918)         7,836        2,552         83,714
        Other income,
         net                 99,280         10,184      143,093        (17,550)
        Income before
         interest charges   204,494        145,593      577,660        372,758
     Interest Charges:
       Interest on
        long-term debt       43,668         55,884      188,481        246,517
       Other interest        23,527         10,364      111,768         14,309
           Interest
            charges,
            net              67,195         66,248      300,249        260,826
           Income after
            interest
            charges         137,299         79,345      277,411        111,932
     Preferred
      Dividends of
      Subsidiaries            2,704          4,758       12,108         21,573
       Income before
        extraordinary
        loss and cumulative
        effect of accounting
        changes, net
        of taxes            134,595         74,587      265,303         90,359
     Extraordinary
      (loss), net of
      tax benefits
       of $169,562            -              -         (233,881)         -
     Cumulative effect
      of accounting
      changes,
      net of tax
      benefits of
      $14,908               (22,432)         -          (22,432)         -
     Net Income            $112,163        $74,587       $8,990        $90,359
     Fully Diluted
      Earnings Per
      Common Share:
       Before
        extraordinary
        loss, net of
        taxes                 $0.93          $0.55        $1.84          $0.68
       Extraordinary
        (loss), net of
        taxes                  -              -           (1.63)          -
       Cumulative
        effect of
        accounting
        changes,
        net of taxes          (0.15)          -           (0.15)          -
     Total Fully
      Diluted Earnings
      Per Common Share        $0.78          $0.55        $0.06          $0.68
     Common Shares
      Outstanding
      (fully diluted)   144,314,339    136,229,530  144,046,071    133,088,092
 
 
 
                            Northeast Utilities and Subsidiaries
                                Consolidated Balance Sheets
 
                                                            March 31,
                                                      2001           2000
                                                     (Thousands of Dollars)
     ASSETS
 
     Utility Plant, at cost:
       Electric                                    $6,009,696     $9,237,679
       Gas and other                                  860,351        826,495
                                                    6,870,047     10,064,174
     Less: Accumulated provision for depreciation   3,487,588      6,373,365
                                                    3,382,459      3,690,809
       Unamortized PSNH acquisition costs                  --        317,332
       Construction work in progress                  206,851        179,516
       Nuclear fuel, net                               29,264        113,378
 
     Total net utility plant                        3,618,574      4,301,035
 
     Other Property and Investments:
       Nuclear decommissioning trusts, at market       57,170        717,246
       Investments in regional nuclear generating
        companies, at equity                           62,480         82,456
       Other, at cost                                 170,980        108,753
                                                      290,630        908,455
     Current Assets:
       Cash and cash equivalents                    1,472,454        369,738
       Investments in securitizable assets            256,431         80,742
       Receivables, net                               532,573        448,356
       Unbilled revenues                              118,927         88,918
       Fuel, materials and supplies, at average cost   94,195        174,442
       Recoverable energy costs, net - current portion    337         85,052
       Prepayments and other                          139,384        108,338
                                                    2,614,301      1,355,586
 
     Deferred Charges:
       Regulatory assets                            4,031,123      3,596,828
       Unamortized debt expense                        40,735         43,839
       Goodwill and other purchased
        intangible assets                             334,512        345,372
       Prepaid pension                                157,455         63,003
       Other                                          158,605        126,890
                                                    4,722,430      4,175,932
 
     Total Assets                                 $11,245,935    $10,741,008
 
 
                                                              March 31,
                                                         2001           2000
                                                       (Thousands of Dollars)
 
     CAPITALIZATION AND LIABILITIES
 
     Capitalization:
      Common shareholders' equity:
      Common shares, $5.00 par value - authorized
      225,000,000 shares; 148,807,333 shares issued and
      143,978,260 shares outstanding in 2001 and
      148,546,234 shares issued and 143,150,550 shares
      outstanding in 2000                            $744,037       $742,731
     Capital surplus, paid in                       1,086,918      1,102,278
     Deferred contribution plan - employee stock
      ownership plan                                (111,264)      (124,626)
     Retained earnings                                593,646        642,092
     Accumulated other comprehensive income             5,745          1,524
 
       Total common shareholders' equity            2,319,082      2,363,999
     Preferred stock not subject
      to mandatory redemption                         116,200        136,200
     Preferred stock subject
      to mandatory redemption                              --        119,789
     Long-term debt                                 2,148,297      2,443,989
 
       Total capitalization                         4,583,579      5,063,977
 
     Rate reduction bonds                           1,438,400             --
     Minority Interest in Consolidated Subsidiary     100,000        100,000
 
     Obligations Under Capital Leases                  17,363         53,126
 
     Current Liabilities:
      Notes payable to banks                        1,111,416        984,000
      Long-term debt and preferred stock -
       current portion                                243,859        346,123
      Obligations under capital leases -
       current portion                                144,840        115,285
      Accounts payable                                653,281        437,492
      Payable to Millstone 3 joint owners              84,512             --
      Accrued taxes                                   376,944        130,252
      Accrued interest                                 58,753         56,088
      Other                                           136,163        127,338
 
                                                    2,809,768      2,196,578
 
     Deferred Credits and Other Long-term Liabilities:
      Accumulated deferred income taxes             1,358,660      1,721,263
      Accumulated deferred investment tax credits     131,760        144,882
      Decommissioning obligation - Millstone 1              -        686,609
      Deferred contractual obligations                237,108        341,983
      Other                                           569,297        432,590
 
                                                    2,296,825      3,327,327
 
 
     Total Capitalization and Liabilities         $11,245,935    $10,741,008
 
 
     The data contained in this report is preliminary and is unaudited. This
     report is being submitted for the sole purpose of providing information to
     present shareholders about the Northeast Utilities System and is not a
     representation, prospectus, or intended for use in connection with any
     purchase or sale of securities.
 
 
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 SOURCE  Northeast Utilities (NU)