Boston Edison Reports 1996 Earnings.

BOSTON--(BUSINESS WIRE)--Jan. 23, 1997--Boston Edison Company (BSE-NYSE) today reported earnings per common share of $0.09 and $2.61 for the three and twelve months ended December 31, 1996, respectively versus earnings of $0.11 and $2.52 per share for the same periods in 1995. Reported earnings for the three and twelve months ending December 31, 1995 exclude nonrecurring restructuring charges of $0.33 and $0.44 per common share, respectively.

Thomas J. May, chairman and chief executive officer, attributed the solid financial results to a healthy local economy and a continued focus on core business operations. Reflecting the strong economic conditions, electric sales to commercial customers increased 4.6 percent in 1996. Operationally, Pilgrim Station achieved its highest-ever capacity factor of 90.5 percent. In addition, we continue to streamline processes, improve productivity and reduce costs across all business units.

May added, "We took dramatic steps in our evolution from a local utility to a regional energy, energy services, and telecommunications provider. Our restructuring settlement sets the stage for an orderly transition from regulation to competition and allows us to focus on the challenges ahead. Our joint ventures create exciting new growth opportunities. Our partners, RCN Inc. (telecommunications) and Williams Energy Group (retail energy marketing), have shown an ability to develop successful new businesses aggressively, provide superior customer service and create a variety of value-added products."

Earnings increased 3.6 percent over 1995, excluding the nonrecurring restructuring charge in 1995, primarily due to a combination of a 2.8 percent increase in retail sales, higher performance related revenues, a decrease in operations and maintenance expense, and a decrease in interest costs. These were partially offset by an increase in depreciation expense, primarily due to a change in the estimated economic life of certain fossil generating units.

Financial Data (in thousands except per share data)

3 months ended December 31:           1996        1995   % Change
Operating revenues                 $390,730    $369,443     5.8%
Net income/(loss)                    $8,405     ($6,397)     NM
Preferred dividends provided         $3,817      $3,890    (1.9%)
Earnings/(loss) per share             $0.09      ($0.21)     NM
Earnings per share impact of non-
   recurring restructuring charge        NA      ($0.33)     NM
Weighted average # of shares         48,464      47,966     1.0%
Dividend declared per share
   of common stock                    $0.47       $0.47     ---


12 months ended December 31:          1996        1995   % Change
Operating revenues               $1,666,303  $1,628,503     2.3%
Net income                         $141,546    $112,310    26.0%
Preferred dividends provided        $15,365     $15,571    (1.3%)
Earnings per share                    $2.61       $2.08    25.5%
Earnings per share impact of non-
   recurring restructuring charge        NA      ($0.44)     NM
Weighted average # of shares         48,265      46,592     3.6%
Dividends declared per share
   of common stock                   $1.880      $1.835     2.5%

NA  Not Applicable
NM  Not Meaningful

CONTACT: Boston Edison

Philip J. Lembo

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