MUTUAL ASSISTANCE AGREEMENT
---------------------------
WHEREAS, the Massachusetts Electric Company, Nantucket
Electric Company, The Narragansett Electric Company, Granite
State Electric Company, New England Power Company, New England
Electric Transmission, New England Hydro-Transmission
Corporation and New England Hydro-Transmission Electric
Company, Inc. (individually, a Company and together, the
Companies) are each an operating electric utility and an
affiliated company within the New England Electric System,
Massachusetts,
WHEREAS, each of the Companies from time to time have
required and may continue to require limited incidental
assistance and services to ensure that their electric utility
operations and equipment are maintained and perform in
accordance with good utility practice,
WHEREAS, each of the Companies may find it from time to
time economic and efficient to obtain from one another such
needed services and assistance, and to provide the same to one
another at cost,
NOW, THEREFORE, the Companies enter into this Mutual
Assistance Agreement.
COVENANTS
1. Each Company will, to the extent possible, respond to
requests from any other Company for specific or general
incidental assistance and services. Such requests may be
modified or canceled by the requesting Company and may be
refused by the responding Company.
2. Requests for incidental assistance and services shall
generally be for the types of services set forth in Exhibit A,
attached hereto and incorporated by reference.
3. All incidental assistance and services rendered under
this Mutual Assistance Agreement will be at actual cost
thereof. Direct charges will be made for assistance and
services.
4. Bills for incidental assistance and services will be
rendered as soon as practicable after the close of each month.
Bills shall be paid as promptly as practicable following
receipt.
5. This Mutual Assistance Agreement is subject to
modification or termination at any time to the extent that its
performance may conflict with any federal or state law or any
rule, regulation or order of a federal or state regulatory body
having jurisdiction thereover. This Agreement is furthermore
subject to approval of any federal or state regulatory body
whose approval is a legal prerequisite to its execution and
performance.
6. This Agreement shall be in effect for calendar year
1997.
7. Any number of counterparts of this Mutual Assistance
Agreement may be executed, and each shall have the same force
and effect as an original instrument, as if all parties to all
counterparts had signed the same instrument.
MASSACHUSETTS ELECTRIC COMPANY
By
Title
NANTUCKET ELECTRIC COMPANY
By
Title
THE NARRAGANSETT ELECTRIC
COMPANY
By
Title
GRANITE STATE ELECTRIC COMPANY
By
Title
NEW ENGLAND POWER COMPANY
By
Title
NEW ENGLAND ELECTRIC
TRANSMISSION
By
Title
NEW ENGLAND HYDRO-TRANSMISSION
CORPORATION
By
Title
NEW ENGLAND HYDRO-TRANSMISSION
ELECTRIC COMPANY
By
Title
Exhibit A
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Description of Assistance and Services Available
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Construction and Maintenance
Manpower and equipment for construction, extension,
improvement, maintenance or repair of electric properties.
Emergencies
Assistance in emergency maintenance and restoration of
utility service and in mobilization of personnel and equipment.
Engineering
Engineering services; technical advice, design,
installation, supervision, planning, research, testing,
operation of communications, and operation and maintenance of
specialized technical equipment.
Stores
Services re storing of materials, supplies and equipment.
Miscellaneous
Consulting and monitoring services; land and/or real
facilities rentals related to transmission or wholesale power
sales; reimbursement of convenience expenses.
Exhibit B
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Determination of Cost of Service
--------------------------------
Cost of service will be determined in accordance with the
rules, regulations and orders of the Securities Exchange
Commission, and will include all costs of doing business
incurred by the providing Company.
Records will be maintained for each unit of the providing
Company in order to accumulate all costs of doing business and
to determine the cost of service. These costs will include
wages and salaries of employees and related expenses such as
insurance, taxes, pensions and other employee welfare expenses,
and general administrative costs.
Charges for services rendered and related expenses and
non-
personnel expenses (e.g., use of automotive equipment, etc.)
will be billed directly to the requesting Company.
Charges for services will be determined from the time
sheets of employees and will be computed on the basis of each
employee's hourly rate plus a percentage factor to cover
related expenses and general administrative expenses. Records
of such related expenses and general administrative expenses
will be maintained and subjected to periodic review.
Out-of-pocket expenses which are incurred for the
requesting Company will be billed at cost. Charges for non-personnel expenses, such as for use of automobiles, trucks and
heavy equipment, will normally be computed on the basis of
costs per hour or per mile.
