Date: Fri 31-Jul-1998

Publication: Bee

Author: CURT

Quick Words:

business-NU-profits

Full Text:

NU Posts Small Profit In Second Quarter

BERLIN (AP) -- Northeast Utilities has reported second-quarter earnings of

$6.3 million, as mothballed nuclear plants lowered company expenses and the

company collected insurance payments from northern ice storms.

The profit, which came out to 5 cents a share, compares with a loss of $47

million, or 37 cents per share, from a year ago.

Revenues were $874.8 million, down 3 percent from revenues of $903.3 million a

year ago. NU attributed the drop to rate cuts, including the removal of costs

associated with the Millstone 1 and 2 nuclear power plants from the rate base

of Connecticut Light & Power.

At the same time, NU reported retail sales of electricity increased 1.7

percent during the second quarter, which ended June 30.

NU cut expenses nearly $140 million during the quarter, in part because of

changes to its nuclear operations.

Three nuclear power plants NU owns or has a share in will not return to

service: Connecticut Yankee in Haddam Neck, Millstone 1 in Waterford and Maine

Yankee in Wiscasset, Maine. Also, costs diminished as the company came closer

to returning the Millstone 3 plant to service and because the Seabrook, N.H.

plant did not refuel.

NU also received a $32 million insurance payment during the quarter for costs

related to the January ice storms in northern New England.

For the first six months of the year, the company reported a loss of $11.7

million, or 9 cents per share, compared with a loss of $46.1 million, or 36

cents a share a year ago. Revenues for the first six months were $1.83

billion, down from $1.88 billion in 1997.

NU is New England's largest utility, serving about 1.7 million customers in

Connecticut, Massachusetts and New Hampshire.