WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>

    <PAGE>
  
  
  <ARTICLE>                         UT
  <LEGEND>                          THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
                                      EXTRACTED FROM THE BALANCE SHEET AND RELATED STATEMENTS OF
                                      INCOME, RETAINED EARNINGS AND CASH FLOWS OF THE
                                      NARRAGANSETT ELECTRIC COMPANY, AND IS QUALIFIED IN ITS
                                      ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
  </LEGEND>
  <SUBSIDIARY>
     <NUMBER>                       3
     <CIK>                          0000069659
     <NAME>                         THE NARRAGANSETT ELECTRIC COMPANY
  <MULTIPLIER>                      1,000
         
  <S>                                                                 <C>
  <FISCAL-YEAR-END>                DEC-31-1998
  <PERIOD-END>                     DEC-31-1998
  <PERIOD-TYPE>                         12-MOS
  <BOOK-VALUE>                        PER-BOOK
  <TOTAL-NET-UTILITY-PLANT>            525,488
  <OTHER-PROPERTY-AND-INVEST>                0
  <TOTAL-CURRENT-ASSETS>                83,004
  <TOTAL-DEFERRED-CHARGES>              55,628    <F1>
  <OTHER-ASSETS>                             0
  <TOTAL-ASSETS>                       664,120
  <COMMON>                                56,624
  <CAPITAL-SURPLUS-PAID-IN>            105,794
  <RETAINED-EARNINGS>                   86,465
  <TOTAL-COMMON-STOCKHOLDERS-EQ>       249,120    <F3>
  <PREFERRED-MANDATORY>                      0
  <PREFERRED>                            7,238
  <LONG-TERM-DEBT-NET>                 168,702
  <SHORT-TERM-NOTES>                    26,675
  <LONG-TERM-NOTES-PAYABLE>                  0
  <COMMERCIAL-PAPER-OBLIGATIONS>             0
  <LONG-TERM-DEBT-CURRENT-PORT>          8,000
  <PREFERRED-STOCK-CURRENT>                  0
  <CAPITAL-LEASE-OBLIGATIONS>                0
  <LEASES-CURRENT>                           0
  <OTHER-ITEMS-CAPITAL-AND-LIAB>       204,385
  <TOT-CAPITALIZATION-AND-LIAB>        664,120
  <GROSS-OPERATING-REVENUE>            475,654
  <INCOME-TAX-EXPENSE>                  16,177
  <OTHER-OPERATING-EXPENSES>           409,570
  <TOTAL-OPERATING-EXPENSES>           425,747
  <OPERATING-INCOME-LOSS>               49,907
  <OTHER-INCOME-NET>                       801
  <INCOME-BEFORE-INTEREST-EXPEN>        50,708
  <TOTAL-INTEREST-EXPENSE>              18,455
  <NET-INCOME>                          32,253
  <PREFERRED-STOCK-DIVIDENDS>              567
  <EARNINGS-AVAILABLE-FOR-COMM>         31,686
  <COMMON-STOCK-DIVIDENDS>              73,612
  <TOTAL-INTEREST-ON-BONDS>             14,925
  <CASH-FLOW-OPERATIONS>                64,203
  <EPS-PRIMARY>                              0    <F2>
  <EPS-DILUTED>                              0    <F2>
  <FN>
  <F1>                              Total deferred charges includes other assets.
  <F2>                              Per share data is not relevant because the Company's common stock
                                      is wholly-owned by New England Electric System.
  <F3>                              Total common stockholders equity includes the unrealized gain on
  securities.
  </FN>