|                                              |  |                        |  |                     
|--------------------------------------------- |  | ---------------------- |  | --------------------
|                                              |  |                        |  | Exhibit 99.1        
|NORTHEAST GENERATION COMPANY                  |  |                        |  |                     
|                                              |  |                        |  |                     
|BALANCE SHEETS                                |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|At December 31,                               |  | 2005                   |  | 2004                
|                                              |  | (Thousands of Dollars)
|                                              |  |                        |  |                     
|ASSETS                                        |  |                        |  |                     
|                                              |  |                        |  |                     
|Current Assets:                               |  |                        |  |                     
|Cash and cash equivalents                     |  | $             16,117   |  | $             13,634
|Accounts receivable from affiliated companies |  | 14,102                 |  | 14,060              
|Notes receivable from affiliated companies    |  | 10,000                 |  | 10,000              
|Taxes receivable                              |  | 2,958                  |  | 1,977               
|Materials and supplies, at average cost       |  | 2,505                  |  | 2,359               
|Prepayments and other                         |  | 1,274                  |  | 1,761               
|                                              |  | 46,956                 |  | 43,791              
|                                              |  |                        |  |                     
|Property, Plant and Equipment:                |  |                        |  |                     
|Competitive energy                            |  | 845,524                |  | 839,927             
|Less: Accumulated depreciation                |  | 47,286                 |  | 37,077              
|                                              |  | 798,238                |  | 802,850             
|Construction work in progress                 |  | 8,083                  |  | 3,563               
|                                              |  | 806,321                |  | 806,413             
|                                              |  |                        |  |                     
|Deferred Debits and Other Assets:             |  |                        |  |                     
|Debt service special deposits                 |  | -                      |  | 31,819              
|Other                                         |  | 4,698                  |  | 6,751               
|                                              |  | 4,698                  |  | 38,570              
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|Total Assets                                  |  | $           857,975    |  | $           888,774 
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     
|                                              |  |                        |  |                     





---



|                                         |  |                        |  |                     
|---------------------------------------- |  | ---------------------- |  | --------------------
|NORTHEAST GENERATION COMPANY             |  |                        |  |                     
|                                         |  |                        |  |                     
|BALANCE SHEETS                           |  |                        |  |                     
|                                         |  |                        |  |                     
|                                         |  |                        |  |                     
|                                         |  |                        |  |                     
|                                         |  |                        |  |                     
|At December 31,                          |  | 2005                   |  | 2004                
|                                         |  | (Thousands of Dollars)
|                                         |  |                        |  |                     
|LIABILITIES AND CAPITALIZATION           |  |                        |  |                     
|                                         |  |                        |  |                     
|Current Liabilities:                     |  |                        |  |                     
|Long-term debt - current portion         |  | $                  -   |  | $             37,500
|Accounts payable                         |  | 2,414                  |  | 2,662               
|Accounts payable to affiliated companies |  | 2,800                  |  | 2,160               
|Accrued taxes                            |  | 2,372                  |  | 648                 
|Accrued interest                         |  | 5,875                  |  | 6,341               
|Other                                    |  | 4,831                  |  | 3,752               
|                                         |  | 18,292                 |  | 53,063              
|                                         |  |                        |  |                     
|Deferred Credits and Other Liabilities:  |  |                        |  |                     
|Accumulated deferred income taxes        |  | 84,620                 |  | 62,983              
|Other                                    |  | 866                    |  | -                   
|                                         |  | 85,486                 |  | 62,983              
|                                         |  |                        |  |                     
|Capitalization:                          |  |                        |  |                     
|Long-Term Debt                           |  | 320,000                |  | 320,000             
|                                         |  |                        |  |                     
|Common Stockholder's Equity:             |  |                        |  |                     
|Common stock, $1 par value - authorized  |  |                        |  |                     
|20,000 shares; 6 shares outstanding      |  |                        |  |                     
|in 2005 and 2004                         |  | -                      |  | -                   
|Capital surplus, paid in                 |  | 408,023                |  | 408,094             
|Retained earnings                        |  | 27,113                 |  | 45,782              
|Accumulated other comprehensive loss     |  | (939)                  |  | (1,148)             
|Common Stockholder's Equity              |  | 434,197                |  | 452,728             
|Total Capitalization                     |  | 754,197                |  | 772,728             
|                                         |  |                        |  |                     
|                                         |  |                        |  |                     
|                                         |  |                        |  |                     
|                                         |  |                        |  |                     
|Total Liabilities and Capitalization     |  | $       857,975        |  | $           888,774 
|                                         |  |                        |  |                     





---



|                                                    |  |                        |  |                  
|--------------------------------------------------- |  | ---------------------- |  | -----------------
|NORTHEAST GENERATION COMPANY                        |  |                        |  |                  
|                                                    |  |                        |  |                  
|STATEMENTS OF INCOME                                |  |                        |  |                  
|                                                    |  |                        |  |                  
|                                                    |  |                        |  |                  
|                                                    |  |                        |  |                  
|For the Years Ended December 31,                    |  | 2005                   |  | 2004             
|                                                    |  | (Thousands of Dollars)
|                                                    |  |                        |  |                  
|Operating Revenues                                  |  | $        154,934       |  | $         153,891
|                                                    |  |                        |  |                  
|Operating Expenses:                                 |  |                        |  |                  
|Operation -                                         |  |                        |  |                  
|Operation, maintenance and fuel                     |  | 29,633                 |  | 31,864           
|Depreciation and amortization                       |  | 10,584                 |  | 10,286           
|Taxes other than income taxes                       |  | 9,484                  |  | 9,487            
|Total operating expenses                            |  | 49,701                 |  | 51,637           
|Operating Income                                    |  | 105,233                |  | 102,254          
|                                                    |  |                        |  |                  
|Interest Expense:                                   |  |                        |  |                  
|Interest on long-term debt                          |  | 31,143                 |  | 32,623           
|Other interest                                      |  | 28                     |  | 38               
|Interest expense, net                               |  | 31,171                 |  | 32,661           
|Other Income, Net                                   |  | 1,743                  |  | 1,074            
|Income Before Income Tax Expense                    |  | 75,805                 |  | 70,667           
|Income Tax Expense                                  |  | 29,959                 |  | 28,651           
|Income Before Cumulative Effect of                  |  |                        |  |                  
|Accounting Change, Net of Tax Benefit               |  | 45,846                 |  | 42,016           
|Cumulative effect of accounting change,             |  |                        |  |                  
|net of tax benefit $346                             |  | (515)                  |  | -                
|Net Income                                          |  | $          45,331      |  | $          42,016
|                                                    |  |                        |  |                  
|STATEMENTS OF COMPREHENSIVE INCOME                  |  |                        |  |                  
|Net Income                                          |  | $          45,331      |  | $          42,016
|Other comprehensive income from                     |  |                        |  |                  
|qualified cash flow hedging instruments, net of tax |  | 209                    |  | 264              
|Comprehensive Income                                |  | $          45,540      |  | $          42,280
|                                                    |  |                        |  |                  





---



|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |                | 
|------------------------------------------- |  | ------------ |  | ------------------------------------------------ |  | ------------- |  | --------------- |  | ----------------------- |  | -------------- | 
|NORTHEAST GENERATION COMPANY                |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|STATEMENTS OF COMMON STOCKHOLDER'S EQUITY   |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|                                            |  |              |  |                                                  |  |               |  |                 |  | Accumulated             |  |               
|                                            |  |              |  |                                                  |  | Capital       |  |                 |  | Other                   |  |               
|                                            |  | Common Stock |  | Surplus,                                         |  | Retained      |  | Comprehensive   |  |                        
|                                            |  | Shares       |  | Amount                                           |  | Paid In       |  | Earnings        |  | (Loss)/Income           |  | Total         
|                                            |  |              |  | (Thousands of Dollars, except share information)
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|Balance at January 1, 2004                  |  | 6            |  | $               -                                |  | $     408,095 |  | $        31,766 |  | $              (1,412)  |  | $      438,449
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|Net income for 2004                         |  |              |  |                                                  |  |               |  | 42,016          |  |                         |  | 42,016        
|Cash dividends on common stock              |  |              |  |                                                  |  |               |  | (28,000)        |  |                         |  | (28,000)      
|Allocation of benefits - ESOP               |  |              |  |                                                  |  | (1)           |  |                 |  |                         |  | (1)           
|Other comprehensive income                  |  |              |  |                                                  |  |               |  |                 |  | 264                     |  | 264           
|Balance at December 31, 2004                |  | 6            |  | -                                                |  | 408,094       |  | 45,782          |  | (1,148)                 |  | 452,728       
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               
|Net income for 2005                         |  |              |  |                                                  |  |               |  | 45,331          |  |                         |  | 45,331        
|Cash dividends on common stock              |  |              |  |                                                  |  |               |  | (64,000)        |  |                         |  | (64,000)      
|Allocation of benefits - ESOP               |  |              |  |                                                  |  | (1)           |  |                 |  |                         |  | (1)           
|Allocation of NU parent company tax benefit |  |              |  |                                                  |  | (70)          |  |                 |  |                         |  | (70)          
|Other comprehensive income                  |  |              |  |                                                  |  |               |  |                 |  | 209                     |  | 209           
|Balance at December 31, 2005                |  | 6            |  | $               -                                |  | $     408,023 |  | $        27,113 |  | $                 (939) |  | $      434,197
|                                            |  |              |  |                                                  |  |               |  |                 |  |                         |  |               





---



|                                                          |  |                         |  |                       
|--------------------------------------------------------- |  | ----------------------- |  | ----------------------
|NORTHEAST GENERATION COMPANY                              |  |                         |  |                       
|                                                          |  |                         |  |                       
|STATEMENTS OF CASH FLOWS                                  |  |                         |  |                       
|                                                          |  |                         |  |                       
|                                                          |  |                         |  |                       
|                                                          |  |                         |  |                       
|For the Years Ended December 31,                          |  | 2005                    |  | 2004                  
|                                                          |  | (Thousands of Dollars) 
|                                                          |  |                         |  |                       
|Operating Activities:                                     |  |                         |  |                       
|Net income                                                |  | $               45,331  |  | $              42,016 
|Adjustments to reconcile to net cash flows                |  |                         |  |                       
|provided by operating activities:                         |  |                         |  |                       
|Depreciation and amortization                             |  | 10,584                  |  | 10,286                
|Deferred income taxes                                     |  | 21,823                  |  | 22,184                
|Other non-cash adjustments                                |  | 2,550                   |  | (1,432)               
|Other sources of cash                                     |  | 3                       |  | -                     
|Changes in current assets and liabilities:                |  |                         |  |                       
|Accounts receivable                                       |  | (42)                    |  | (1,072)               
|Materials and supplies                                    |  | (146)                   |  | (48)                  
|Other current assets                                      |  | 487                     |  | (1,012)               
|Accounts payable                                          |  | 342                     |  | 1,282                 
|Accrued taxes                                             |  | 743                     |  | (1,775)               
|Accrued interest                                          |  | (466)                   |  | -                     
|Other current liabilities                                 |  | 1,288                   |  | 3,245                 
|Net cash flows provided by operating activities           |  | 82,497                  |  | 73,674                
|                                                          |  |                         |  |                       
|Investing Activities:                                     |  |                         |  |                       
|Investments in competitive energy plant                   |  | (10,333)                |  | (11,788)              
|Investment in debt service special deposits               |  | 31,819                  |  | (1,615)               
|Net cash flows provided by/(used in) investing activities |  | 21,486                  |  | (13,403)              
|                                                          |  |                         |  |                       
|Financing Activities:                                     |  |                         |  |                       
|Retirement of long-term debt                              |  | (37,500)                |  | (31,500)              
|Cash dividends on common stock                            |  | (64,000)                |  | (28,000)              
|Net cash flows used in financing activities               |  | (101,500)               |  | (59,500)              
|Net increase in cash and cash equivalents                 |  | 2,483                   |  | 771                   
|Cash and cash equivalents - beginning of year             |  | 13,634                  |  | 12,863                
|Cash and cash equivalents - end of year                   |  | $               16,117  |  | $              13,634 
|                                                          |  |                         |  |                       
|Supplemental Cash Flow Information:                       |  |                         |  |                       
|Cash paid during the year for:                            |  |                         |  |                       
|Interest, net of amounts capitalized of $395 in 2005      |  |                         |  |                       
|and $599 in 2004                                          |  | $               30,495  |  | $              32,506 
|Income taxes                                              |  | $                 8,427 |  | $                9,798
|                                                          |  |                         |  |                       
|                                                          |  |                         |  |                       
|