|UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
|------------------------------------------------------------------------
|FORM 10-Q                                                               
|                                                                        





|Commission
File Number                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                         | Exact name of registrants as specified in their charters,
 State of organization, address of principal executive offices
and registrants' telephone number | IRS Employer
Identification
Number           
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                         |                                                                                                                                                            |                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                         |                                                                                                                                                           
|333-52397                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | ESI TRACTEBEL ACQUISITION CORP.(a Delaware corporation) | 65-0827005                                                                                                                                                
|333-52397-01                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | NORTHEAST ENERGY, LP(a Delaware limited partnership)    | 65-0811248                                                                                                                                                
|c/o FPL Energy, LLC
700 Universe Boulevard
Juno Beach, Florida 33408
(561) 691-7171                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) have been subject to such filing requirements for the past 90 days.
       Yes  [   ]    No  [X]                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, non-accelerated filers, or smaller reporting companies. See the definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Securities Exchange Act of 1934. (Check one):                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Large accelerated filers [   ]                          | Accelerated filers [   ]                                                                                                                                   | Non-accelerated filers [X]                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                         |                                                                                                                                                            | (Do not check if a smaller reporting company)
|Indicate by check mark whether the registrants are shell companies as defined in Rule 12b-2 of the Securities Exchange Act of 1934.        Yes  [   ]    No  [X]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|APPLICABLE ONLY TO CORPORATE ISSUERS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|As of April 30, 2008, there were issued and outstanding 20 shares of ESI Tractebel Acquisition Corp.'s common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                         |                                                                                                                                                           
|This combined Form 10-Q represents separate filings by ESI Tractebel Acquisition Corp. (Acquisition Corp.) and Northeast Energy, LP (NE LP). Information contained herein relating to an individual registrant is filed by that registrant on its own behalf. Each registrant makes representations only as to itself and makes no representations whatsoever as to the other registrant. The registrants make no representations whatsoever as to ESI Tractebel Funding Corp. (Funding Corp.), and Acquisition Corp. makes no representations whatsoever as to Northeast Energy Associates, a limited partnership (NEA) or North Jersey Energy Associates, a limited partnership (NJEA, and collectively with NEA, the Partnerships).

|FORWARD-LOOKING STATEMENTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|This report includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to expectations, beliefs, plans, objectives, assumptions, future events or performance, climate change strategy or growth strategies (often, but not always, through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "aim," "believe," "could," "estimated," "may," "plan," "potential," "projection," "target," "outlook", "predict," "intend") are not statements of historical facts and may be forward-looking. Forward-looking statements involve estimates, assumptions and uncertainties. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following important factors (in addition to any assumptions and other factors referred to specifically in connection with such forward-looking statements) that could have a significant impact on the Acquisition Corp.'s and/or NE LP's (together, the registrants) operations and financial results, and could cause Acquisition Corp.'s and/or NE LP's actual results to differ materially from those contained in forward-looking statements made by or on behalf of either of the registrants in this combined Form 10-Q, in presentations, in response to questions or otherwise.
|·                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
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|These and other risk factors are included in Part I, Item 1A. Risk Factors of the registrants' Annual Report on Form 10-K for the year ended December 31, 2007 (2007 Form 10-K).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Any forward-looking statement speaks only as of the date on which such statement is made, and the registrants undertake no obligation to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which such statement is made. New factors emerge from time to time, and it is not possible for management to predict all of such factors, nor can it assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         





|PART I - FINANCIAL INFORMATION
|------------------------------
|Item 1. Financial Statements  



|NORTHEAST ENERGY, LP (A PARTNERSHIP) AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Thousands of Dollars)
(Unaudited)
|------------------------------------------------------------------------------------------------------------------------------



|                                       |                                                                                                                              | March 31,
2008                |         |         | December 31,
2007 |  
|-------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | ------- | ------- | ----------------- | -
|                                       |                                                                                                                              |                               |         |         |                   |  
|ASSETS                                 |                                                                                                                              |                               |         |         |                   |  
|Current assets:                        |                                                                                                                              |                               |         |         |                   |  
|                                       | Cash and cash equivalents                                                                                                    |                               | $       | 110,962 |                   |  
|                                       | Accounts receivable                                                                                                          |                               |         | 76,440  |                   |  
|                                       | Spare parts inventories                                                                                                      |                               |         | 5,323   |                   |  
|                                       | Fuel inventories                                                                                                             |                               |         | 3,915   |                   |  
|                                       | Prepaid expenses and other current assets                                                                                    |                               |         | 806     |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total current assets          |         |         | 197,446           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|Non-current assets:                    |                                                                                                                              |                               |         |         |                   |  
|                                       | Deferred debt issuance costs (net of accumulated amortization of $5,884 and $5,781, respectively)                            |                               |         | 1,076   |                   |  
|                                       | Land                                                                                                                         |                               |         | 4,712   |                   |  
|                                       | Cogeneration facilities and carbon dioxide facility (net of accumulated depreciation of $185,758 and $180,912, respectively) |                               |         | 331,158 |                   |  
|                                       | Power purchase agreements (net of accumulated amortization of $635,266 and $614,636, respectively)                           |                               |         | 306,091 |                   |  
|                                       | Other assets                                                                                                                 |                               |         | 4,562   |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total non-current assets      |         |         | 647,599           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|TOTAL ASSETS                           |                                                                                                                              | $                             | 845,045 |         |                   | $
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|LIABILITIES AND PARTNERS' EQUITY       |                                                                                                                              |                               |         |         |                   |  
|Current liabilities:                   |                                                                                                                              |                               |         |         |                   |  
|                                       | Current portion of notes payable - the Funding Corp.                                                                         |                               | $       | 51,801  |                   |  
|                                       | Current portion of note payable - the Acquisition Corp.                                                                      |                               |         | 22,000  |                   |  
|                                       | Current portion of note payable - affiliate                                                                                  |                               |         | 3,661   |                   |  
|                                       | Accrued interest payable                                                                                                     |                               |         | 7,472   |                   |  
|                                       | Accounts payable                                                                                                             |                               |         | 14,767  |                   |  
|                                       | Due to related parties                                                                                                       |                               |         | 5,877   |                   |  
|                                       | Other accrued expenses                                                                                                       |                               |         | 7,537   |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total current liabilities     |         |         | 113,115           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|Non-current liabilities:               |                                                                                                                              |                               |         |         |                   |  
|                                       | Deferred revenue                                                                                                             |                               |         | 46,528  |                   |  
|                                       | Notes payable - the Funding Corp.                                                                                            |                               |         | 119,839 |                   |  
|                                       | Note payable - the Acquisition Corp.                                                                                         |                               |         | 127,600 |                   |  
|                                       | Note payable - affiliate                                                                                                     |                               |         | 10,566  |                   |  
|                                       | Energy bank and other liabilities                                                                                            |                               |         | 151     |                   |  
|                                       | Lease payable                                                                                                                |                               |         | 443     |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total non-current liabilities |         |         | 305,127           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|COMMITMENTS AND CONTINGENCIES          |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|Partners' equity:                      |                                                                                                                              |                               |         |         |                   |  
|                                       | General partners                                                                                                             |                               |         | 8,535   |                   |  
|                                       | Limited partners                                                                                                             |                               |         | 418,268 |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total partners' equity        |         |         | 426,803           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|TOTAL LIABILITIES AND PARTNERS' EQUITY |                                                                                                                              | $                             | 845,045 |         |                   | $
|                                       |                                                                                                                              |                               |         |         |                   |  



|This report should be read in conjunction with the Notes to Condensed Consolidated Financial Statements herein and the Notes to Consolidated and Combined Financial Statements appearing in the 2007 Form 10-K for NE LP and Subsidiaries.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|NORTHEAST ENERGY, LP (A PARTNERSHIP) AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of Dollars)
(Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------



|                        |                                     |                           |  |  |  |  |  |  |  | Three Months Ended
March 31, |        
|----------------------- | ----------------------------------- | ------------------------- |  |  |  |  |  |  |  | ---------------------------- | -------
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              | 2008   
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|REVENUES                |                                     |                           |  |  |  |  |  |  |  | $                            | 116,671
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|COSTS AND EXPENSES:     |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        | Fuel (net of fuel sales)            |                           |  |  |  |  |  |  |  |                              |        
|                        | Operations and maintenance          |                           |  |  |  |  |  |  |  |                              |        
|                        | Depreciation and amortization       |                           |  |  |  |  |  |  |  |                              |        
|                        | General and administrative          |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     | Total costs and expenses  |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|OPERATING INCOME        |                                     |                           |  |  |  |  |  |  |  |                              | 41,553 
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|OTHER EXPENSE (INCOME): |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        | Amortization of debt issuance costs |                           |  |  |  |  |  |  |  |                              |        
|                        | Interest expense                    |                           |  |  |  |  |  |  |  |                              |        
|                        | Interest income                     |                           |  |  |  |  |  |  |  |                              |        
|                        | Loss on disposal of assets          |                           |  |  |  |  |  |  |  |                              |        
|                        | Other, net                          |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     | Total other expense - net |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        
|NET INCOME              |                                     |                           |  |  |  |  |  |  |  | $                            | 36,264 
|                        |                                     |                           |  |  |  |  |  |  |  |                              |        





|CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
(Unaudited)
|----------------------------------------------------------------------------------



|                                                  |                                                                  |                                       |  |  |  |  |  |  |  | Three Months Ended
March 31, |        
|------------------------------------------------- | ---------------------------------------------------------------- | ------------------------------------- |  |  |  |  |  |  |  | ---------------------------- | -------
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              | 2008   
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|NET CASH PROVIDED BY OPERATING ACTIVITIES         |                                                                  |                                       |  |  |  |  |  |  |  | $                            | 67,757 
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|CASH FLOWS FROM INVESTING ACTIVITIES:             |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Capital expenditures                                             |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  | Net cash used in investing activities |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|CASH FLOWS FROM FINANCING ACTIVITIES:             |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Principal payments on the Funding Corp. notes                    |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Principal payments on the Acquisition Corp. note                 |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Distributions to partners                                        |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  | Net cash used in financing activities |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|Net increase in cash and cash equivalents         |                                                                  |                                       |  |  |  |  |  |  |  |                              | 65,705 
|Cash and cash equivalents at beginning of period  |                                                                  |                                       |  |  |  |  |  |  |  |                              | 45,257 
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|Cash and cash equivalents at end of period        |                                                                  |                                       |  |  |  |  |  |  |  | $                            | 110,962
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Cash paid for interest                                           |                                       |  |  |  |  |  |  |  |                              | $      
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:   |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Additions to cogeneration facilities and carbon dioxide facility |                                       |  |  |  |  |  |  |  |                              | $      



|This report should be read in conjunction with the Notes to Condensed Consolidated Financial Statements herein and the Notes to Consolidated and Combined Financial Statements appearing in the 2007 Form 10-K for NE LP and Subsidiaries.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
CONDENSED COMBINED BALANCE SHEETS
(Thousands of Dollars)
(Unaudited)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                                       |                                                                                                                              | March 31,
2008                |         |         | December 31,
2007 |  
|-------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | ------- | ------- | ----------------- | -
|                                       |                                                                                                                              |                               |         |         |                   |  
|ASSETS                                 |                                                                                                                              |                               |         |         |                   |  
|Current assets:                        |                                                                                                                              |                               |         |         |                   |  
|                                       | Cash and cash equivalents                                                                                                    |                               | $       | 110,941 |                   |  
|                                       | Accounts receivable                                                                                                          |                               |         | 76,440  |                   |  
|                                       | Spare parts inventories                                                                                                      |                               |         | 5,323   |                   |  
|                                       | Fuel inventories                                                                                                             |                               |         | 3,915   |                   |  
|                                       | Prepaid expenses and other current assets                                                                                    |                               |         | 806     |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total current assets          |         |         | 197,425           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|Non-current assets:                    |                                                                                                                              |                               |         |         |                   |  
|                                       | Land                                                                                                                         |                               |         | 4,712   |                   |  
|                                       | Cogeneration facilities and carbon dioxide facility (net of accumulated depreciation of $185,758 and $180,912, respectively) |                               |         | 331,158 |                   |  
|                                       | Power purchase agreements (net of accumulated amortization of $635,266 and $614,636, respectively)                           |                               |         | 306,091 |                   |  
|                                       | Other assets                                                                                                                 |                               |         | 4,562   |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total non-current assets      |         |         | 646,523           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|TOTAL ASSETS                           |                                                                                                                              | $                             | 843,948 |         |                   | $
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|LIABILITIES AND PARTNERS' EQUITY       |                                                                                                                              |                               |         |         |                   |  
|Current liabilities:                   |                                                                                                                              |                               |         |         |                   |  
|                                       | Current portion of notes payable - the Funding Corp.                                                                         |                               | $       | 51,801  |                   |  
|                                       | Accrued interest payable                                                                                                     |                               |         | 4,192   |                   |  
|                                       | Accounts payable                                                                                                             |                               |         | 14,767  |                   |  
|                                       | Due to related parties                                                                                                       |                               |         | 5,877   |                   |  
|                                       | Other accrued expenses                                                                                                       |                               |         | 7,537   |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total current liabilities     |         |         | 84,174            |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|Non-current liabilities:               |                                                                                                                              |                               |         |         |                   |  
|                                       | Deferred revenue                                                                                                             |                               |         | 46,528  |                   |  
|                                       | Notes payable - the Funding Corp.                                                                                            |                               |         | 119,839 |                   |  
|                                       | Lease payable                                                                                                                |                               |         | 443     |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total non-current liabilities |         |         | 166,810           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|COMMITMENTS AND CONTINGENCIES          |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|Partners' equity:                      |                                                                                                                              |                               |         |         |                   |  
|                                       | General partners                                                                                                             |                               |         | 5,929   |                   |  
|                                       | Limited partners                                                                                                             |                               |         | 587,035 |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              | Total partners' equity        |         |         | 592,964           |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|                                       |                                                                                                                              |                               |         |         |                   |  
|TOTAL LIABILITIES AND PARTNERS' EQUITY |                                                                                                                              | $                             | 843,948 |         |                   | $
|                                       |                                                                                                                              |                               |         |         |                   |  



|This report should be read in conjunction with the Notes to Condensed Combined Financial Statements herein and the Notes to Consolidated and Combined Financial Statements appearing in the 2007 Form 10-K for NEA and NJEA.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
CONDENSED COMBINED STATEMENTS OF OPERATIONS
(Thousands of Dollars)
(Unaudited)
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                        |                               |                           |  |  |  |  |  |  |  | Three Months Ended
March 31, |        
|----------------------- | ----------------------------- | ------------------------- |  |  |  |  |  |  |  | ---------------------------- | -------
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  | 2008                         |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|REVENUES                |                               |                           |  |  |  |  |  |  |  | $                            | 116,671
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|COSTS AND EXPENSES:     |                               |                           |  |  |  |  |  |  |  |                              |        
|                        | Fuel (net of fuel sales)      |                           |  |  |  |  |  |  |  |                              |        
|                        | Operations and maintenance    |                           |  |  |  |  |  |  |  |                              |        
|                        | Depreciation and amortization |                           |  |  |  |  |  |  |  |                              |        
|                        | General and administrative    |                           |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|                        |                               | Total costs and expenses  |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|OPERATING INCOME        |                               |                           |  |  |  |  |  |  |  |                              | 41,553 
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|OTHER EXPENSE (INCOME): |                               |                           |  |  |  |  |  |  |  |                              |        
|                        | Interest expense              |                           |  |  |  |  |  |  |  |                              |        
|                        | Interest income               |                           |  |  |  |  |  |  |  |                              |        
|                        | Loss on disposal of assets    |                           |  |  |  |  |  |  |  |                              |        
|                        | Other, net                    |                           |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|                        |                               | Total other expense - net |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|                        |                               |                           |  |  |  |  |  |  |  |                              |        
|NET INCOME              |                               |                           |  |  |  |  |  |  |  | $                            | 39,647 
|                        |                               |                           |  |  |  |  |  |  |  |                              |        





|CONDENSED COMBINED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
(Unaudited)
|------------------------------------------------------------------------------



|                                                  |                                                                  |                                       |  |  |  |  |  |  |  | Three Months Ended
March 31, |        
|------------------------------------------------- | ---------------------------------------------------------------- | ------------------------------------- |  |  |  |  |  |  |  | ---------------------------- | -------
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  | 2008                         |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|NET CASH PROVIDED BY OPERATING ACTIVITIES         |                                                                  |                                       |  |  |  |  |  |  |  | $                            | 67,747 
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|CASH FLOWS FROM INVESTING ACTIVITIES:             |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Capital expenditures                                             |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  | Net cash used in investing activities |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|CASH FLOWS FROM FINANCING ACTIVITIES:             |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Principal payments on notes                                      |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Distributions to partners                                        |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  | Net cash used in financing activities |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|Net increase in cash and cash equivalents         |                                                                  |                                       |  |  |  |  |  |  |  |                              | 65,695 
|Cash and cash equivalents at beginning of period  |                                                                  |                                       |  |  |  |  |  |  |  |                              | 45,246 
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|Cash and cash equivalents at end of period        |                                                                  |                                       |  |  |  |  |  |  |  | $                            | 110,941
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Cash paid for interest                                           |                                       |  |  |  |  |  |  |  |                              | $      
|                                                  |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:   |                                                                  |                                       |  |  |  |  |  |  |  |                              |        
|                                                  | Additions to cogeneration facilities and carbon dioxide facility |                                       |  |  |  |  |  |  |  |                              | $      



|This report should be read in conjunction with the Notes to Condensed Combined Financial Statements herein and the Notes to Consolidated and Combined Financial Statements appearing in the 2007 Form 10-K for NEA and NJEA.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ESI TRACTEBEL FUNDING CORP.
CONDENSED BALANCE SHEETS
(Thousands of Dollars)
(Unaudited)
|---------------------------------------------------------------------------------------



|                                           |                                                                              | March 31,
2008            |         |        | December 31,
2007 |  
|------------------------------------------ | ---------------------------------------------------------------------------- | ------------------------- | ------- | ------ | ----------------- | -
|                                           |                                                                              |                           |         |        |                   |  
|ASSETS                                     |                                                                              |                           |         |        |                   |  
|Current assets:                            |                                                                              |                           |         |        |                   |  
|                                           | Cash                                                                         |                           | $       | 1      |                   |  
|                                           | Interest receivable from the Partnerships                                    |                           |         | 4,192  |                   |  
|                                           | Current portion of notes receivable from the Partnerships                    |                           |         | 51,801 |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|                                           |                                                                              | Total current assets      |         |        | 55,994            |  
|                                           |                                                                              |                           |         |        |                   |  
|Notes receivable from the Partnerships     |                                                                              |                           | 119,839 |        |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|TOTAL ASSETS                               |                                                                              | $                         | 175,833 |        |                   | $
|                                           |                                                                              |                           |         |        |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|LIABILITIES AND STOCKHOLDERS' EQUITY       |                                                                              |                           |         |        |                   |  
|Current liabilities:                       |                                                                              |                           |         |        |                   |  
|                                           | Current portion of debt securities payable                                   |                           | $       | 51,801 |                   |  
|                                           | Accrued interest payable                                                     |                           |         | 4,192  |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|                                           |                                                                              | Total current liabilities |         |        | 55,933            |  
|                                           |                                                                              |                           |         |        |                   |  
|Debt securities payable                    |                                                                              |                           | 119,839 |        |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|COMMITMENTS AND CONTINGENCIES              |                                                                              |                           |         |        |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|Stockholders' equity:                      |                                                                              |                           |         |        |                   |  
|                                           | Common stock, no par value, 10,000 shares authorized, issued and outstanding |                           |         | 1      |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|                                           |                                                                              |                           |         |        |                   |  
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |                                                                              | $                         | 175,833 |        |                   | $
|                                           |                                                                              |                           |         |        |                   |  







|CONDENSED STATEMENTS OF OPERATIONS
(Thousands of Dollars)
(Unaudited)
|---------------------------------------------------------------------



|                            |  |  |  |  |  |  |  |  |  | Three Months Ended
March 31, |       
|--------------------------- |  |  |  |  |  |  |  |  |  | ---------------------------- | ------
|                            |  |  |  |  |  |  |  |  |  |                              |       
|                            |  |  |  |  |  |  |  |  |  | 2008                         |       
|                            |  |  |  |  |  |  |  |  |  |                              |       
|Interest income - affiliate |  |  |  |  |  |  |  |  |  | $                            | 4,192 
|Interest expense            |  |  |  |  |  |  |  |  |  |                              | (4,192
|                            |  |  |  |  |  |  |  |  |  |                              |       
|                            |  |  |  |  |  |  |  |  |  |                              |       
|NET INCOME                  |  |  |  |  |  |  |  |  |  | $                            | -     
|                            |  |  |  |  |  |  |  |  |  |                              |       



|These reports should be read in conjunction with the Notes to Condensed Financial Statements herein and the Notes to Financial Statements appearing in the 2007 Form 10-K for the Funding Corp.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|ESI TRACTEBEL FUNDING CORP.
CONDENSED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
(Unaudited)
|-------------------------------------------------------------------------------------------------



|                                                  |                                                  |                                           |  |  |  |  |  |  |  | Three Months Ended
March 31, |  
|------------------------------------------------- | ------------------------------------------------ | ----------------------------------------- |  |  |  |  |  |  |  | ---------------------------- | -
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  | 2008                         |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|NET CASH PROVIDED BY OPERATING ACTIVITIES         |                                                  |                                           |  |  |  |  |  |  |  | $                            | -
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|CASH FLOWS FROM INVESTING ACTIVITIES:             |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  | Principal payment received from the Partnerships |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  | Net cash provided by investing activities |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|CASH FLOWS FROM FINANCING ACTIVITIES:             |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  | Principal payment on debt                        |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  | Net cash used in financing activities     |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|Net change in cash                                |                                                  |                                           |  |  |  |  |  |  |  |                              | -
|Cash at beginning of period                       |                                                  |                                           |  |  |  |  |  |  |  |                              | 1
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|Cash at end of period                             |                                                  |                                           |  |  |  |  |  |  |  | $                            | 1
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |                                                  |                                           |  |  |  |  |  |  |  |                              |  
|                                                  | Cash paid for interest                           |                                           |  |  |  |  |  |  |  |                              | $



|These reports should be read in conjunction with the Notes to Condensed Financial Statements herein and the Notes to Financial Statements appearing in the 2007 Form 10-K for the Funding Corp.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|ESI TRACTEBEL ACQUISITION CORP.
CONDENSED BALANCE SHEETS
(Thousands of Dollars)
(Unaudited)
|-------------------------------------------------------------------------------------------



|                                           |                                                                                       | March 31,
2008                |         |         | December 31,
2007 |  
|------------------------------------------ | ------------------------------------------------------------------------------------- | ----------------------------- | ------- | ------- | ----------------- | -
|                                           |                                                                                       |                               |         |         |                   |  
|ASSETS                                     |                                                                                       |                               |         |         |                   |  
|Current assets:                            |                                                                                       |                               |         |         |                   |  
|                                           | Interest receivable from NE LP                                                        |                               | $       | 2,988   |                   |  
|                                           | Current portion of note receivable from NE LP                                         |                               |         | 22,000  |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       | Total current assets          |         |         | 24,998            |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|Non-current assets:                        |                                                                                       |                               |         |         |                   |  
|                                           | Due from NE LP                                                                        |                               |         | 152     |                   |  
|                                           | Note receivable from NE LP                                                            |                               |         | 127,600 |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       | Total non-current assets      |         |         | 127,752           |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|TOTAL ASSETS                               |                                                                                       | $                             | 152,740 |         |                   | $
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|LIABILITIES AND STOCKHOLDERS' EQUITY       |                                                                                       |                               |         |         |                   |  
|Current liabilities:                       |                                                                                       |                               |         |         |                   |  
|                                           | Income taxes payable                                                                  |                               | $       | 45      |                   |  
|                                           | Accrued interest payable                                                              |                               |         | 2,988   |                   |  
|                                           | Current portion of debt securities payable                                            |                               |         | 22,000  |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       | Total current liabilities     |         |         | 25,033            |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|Non-current liabilities:                   |                                                                                       |                               |         |         |                   |  
|                                           | Debt securities payable                                                               |                               |         | 127,600 |                   |  
|                                           | Other                                                                                 |                               |         | 24      |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       | Total non-current liabilities |         |         | 127,624           |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|TOTAL LIABILITIES                          |                                                                                       |                               | 152,657 |         |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|COMMITMENTS AND CONTINGENCIES              |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|Stockholders' equity:                      |                                                                                       |                               |         |         |                   |  
|                                           | Common stock, $.10 par value, 100 shares authorized, 20 shares issued and outstanding |                               |         | -       |                   |  
|                                           | Retained earnings                                                                     |                               |         | 83      |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|                                           |                                                                                       |                               |         |         |                   |  
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |                                                                                       | $                             | 152,740 |         |                   | $
|                                           |                                                                                       |                               |         |         |                   |  





|CONDENSED STATEMENTS OF OPERATIONS
(Thousands of Dollars)
(Unaudited)
|---------------------------------------------------------------------



|                            |  |  |  |  |  |  |  |  |  | Three Months Ended
March 31, |       
|--------------------------- |  |  |  |  |  |  |  |  |  | ---------------------------- | ------
|                            |  |  |  |  |  |  |  |  |  |                              |       
|                            |  |  |  |  |  |  |  |  |  | 2008                         |       
|                            |  |  |  |  |  |  |  |  |  |                              |       
|Interest income - affiliate |  |  |  |  |  |  |  |  |  | $                            | 2,988 
|Interest expense            |  |  |  |  |  |  |  |  |  |                              | (2,986
|                            |  |  |  |  |  |  |  |  |  |                              |       
|Income before income taxes  |  |  |  |  |  |  |  |  |  |                              | 2     
|Income tax expense          |  |  |  |  |  |  |  |  |  |                              | (1    
|                            |  |  |  |  |  |  |  |  |  |                              |       
|                            |  |  |  |  |  |  |  |  |  |                              |       
|NET INCOME                  |  |  |  |  |  |  |  |  |  | $                            | 1     
|                            |  |  |  |  |  |  |  |  |  |                              |       



|These reports should be read in conjunction with the Notes to Condensed Financial Statements herein and the Notes to Financial Statements appearing in the 2007 Form 10-K for the Acquisition Corp.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





|ESI TRACTEBEL ACQUISITION CORP.
CONDENSED STATEMENTS OF CASH FLOWS
(Thousands of Dollars)
(Unaudited)
|-----------------------------------------------------------------------------------------------------



|                                                  |                                       |                                           |  |  |  |  |  |  |  | Three Months Ended
March 31, |  
|------------------------------------------------- | ------------------------------------- | ----------------------------------------- |  |  |  |  |  |  |  | ---------------------------- | -
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  | 2008                         |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|NET CASH PROVIDED BY OPERATING ACTIVITIES         |                                       |                                           |  |  |  |  |  |  |  | $                            | -
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|CASH FLOWS FROM INVESTING ACTIVITIES:             |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  | Principal payment received from NE LP |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       | Net cash provided by investing activities |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|CASH FLOWS FROM FINANCING ACTIVITIES:             |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  | Principal payment on debt             |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       | Net cash used in financing activities     |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|Net change in cash                                |                                       |                                           |  |  |  |  |  |  |  |                              | -
|Cash at beginning of period                       |                                       |                                           |  |  |  |  |  |  |  |                              | -
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|Cash at end of period                             |                                       |                                           |  |  |  |  |  |  |  | $                            | -
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  |                                       |                                           |  |  |  |  |  |  |  |                              |  
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |                                       |                                           |  |  |  |  |  |  |  |                              |  
|                                                  | Cash paid for interest                |                                           |  |  |  |  |  |  |  |                              | $



|These reports should be read in conjunction with the Notes to Condensed Financial Statements herein and the Notes to Financial Statements appearing in the 2007 Form 10-K for the Acquisition Corp.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|NORTHEAST ENERGY, LP (A PARTNERSHIP) AND SUBSIDIARIES
NORTHEAST ENERGY ASSOCIATES, A LIMITED PARTNERSHIP AND
NORTH JERSEY ENERGY ASSOCIATES, A LIMITED PARTNERSHIP
ESI TRACTEBEL FUNDING CORP.
ESI TRACTEBEL ACQUISITION CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONDENSED COMBINED FINANCIAL STATEMENTS
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|The accompanying Condensed Consolidated Financial Statements, Condensed Combined Financial Statements and Condensed Financial Statements should be read in conjunction with the 2007 Form 10-K for the registrants. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair financial statement presentation have been made. The results of operations for an interim period generally will not give a true indication of results for the year.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1.  Combined Statement of Partners' Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|NEA's and NJEA's general partner (GP) and limited partner (LP) equity balances are comprised of the following:                                                                                                                                                                                                                                                                                                                                                                                               



|                            |  | NEA                    |       | NJEA |   | Combined | 
|--------------------------- |  | ---------------------- | ----- | ---- | - | -------- | 
|                            |  |                        |       |      |   |          | 
|                            |  | GP                     |       | LP   |   | Total    | 
|                            |  |                        |       |      |   |          | 
|                            |  | (Thousands of Dollars) |      
|                            |  |                        |       |      |   |          | 
|Balances, December 31, 2007 |  | $                      | 1,968 |      | $ | 194,846  | 
|Balances, March 31, 2008    |  | $                      | 2,056 |      | $ | 203,570  | 



|The Partnerships paid distributions to NE LP totaling $0.0 million and $25.1 million for the three months ended March 31, 2008 and 2007, respectively. NE LP paid distributions to its partners totaling $0.0 million and $4.8 million for the three months ended March 31, 2008 and 2007, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2.  Accounting for Derivative Instruments and Hedging Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Derivative instruments are recorded on NE LP's and the Partnerships' condensed consolidated and combined balance sheets as either an asset or liability (in prepaid expenses and other current assets, other assets and other accrued expenses) measured at fair value in accordance with Statement of Financial Accounting Standards No. (FAS) 133 "Accounting for Derivative Instruments and Hedging Activities," (as amended). NE LP and the Partnerships use derivative instruments (primarily forward purchases and sales, swaps and options) to manage the commodity price risk inherent in fuel and electricity contracts and to optimize the value of power generation assets and related contracts. To a lesser extent NE LP and the Partnerships also engage in limited trading activities to take advantage of expected favorable price movements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|All changes in the derivatives' fair value (unrealized mark-to-market gains and losses) for power purchases and sales are recognized on a net basis in revenues, and fuel purchases and sales are recognized on a net basis in fuel expense unless hedge accounting is applied. While substantially all of NE LP's and the Partnerships' derivative transactions are entered into for the purposes described above, hedge accounting is only applied where specific criteria are met and it is practicable to do so. In order to apply hedge accounting, the transaction must be designated as a hedge at inception and it must be highly effective in offsetting the hedged risk. Additionally, for hedges of commodity price risk, physical delivery for forecasted commodity transactions must be probable.  NE LP and the Partnerships believe that where offsetting positions exist at the same location for the same time, the transactions are considered to have been netted and therefore physical delivery has been deemed not to have occurred for financial reporting purposes. Transactions for which physical delivery is deemed not to have occurred are presented on a net basis. Generally, the hedging instrument's effectiveness is assessed utilizing regression analysis at the inception of the hedge and on at least a quarterly basis throughout its life. At March 31, 2008, no cash flow hedges existed at NE LP and the Partnerships. The effective portion of the gain or loss on a derivative instrument designated as a cash flow hedge is reported as a component of other comprehensive income (OCI) and is reclassified into earnings in the period(s) during which the transaction being hedged affects earnings. The ineffective portion of the net unrealized gains (losses) on these hedges is reported in earnings in the current period. Settlement gains and losses are included within the line items in the statements of operations to which they relate. There were no net gains/losses on cash flow hedges in comprehensive income for the three months ended March 31, 2008 and 2007. As a result, there were no differences between comprehensive income and net income for the three months ended March 31, 2008 and 2007, respectively.
|Unrealized mark-to-market losses on derivative transactions were $2.8 million and $5.3 million for the quarters ended March 31, 2008 and 2007, respectively, and are included in fuel expense (net of fuel sales) on the condensed consolidated and combined statements of operations. The current portion of the derivative liability was $0.4 million at March 31, 2008 and is included in the condensed consolidated and combined balance sheets under other accrued expenses. There were no non-current derivative liabilities at March 31, 2008. There were no derivative assets at March 31, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|3.  Fair Value Measurements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Effective January 1, 2008, NE LP and the Partnerships adopted FAS 157, "Fair Value Measurements," which clarifies how to measure fair value and requires expanded fair value measurement disclosures. The standard emphasizes that fair value is a market-based measurement not an entity-specific measurement, and sets out a fair value hierarchy intended to disclose information about the relative reliability of fair value measurements with the highest priority being quoted prices in active markets for identical assets or liabilities. FAS 157 was effective January 1, 2008 for financial assets and liabilities, and for any other fair value measurements made on a recurring basis. The impact of adopting the recognition provisions of the standard were not material to NE LP and the Partnerships. For all other fair value measurements, FAS 157 will be effective January 1, 2009.  NE LP and the Partnerships are continuing to evaluate the impact of FAS 157 as it applies to non-financial assets and liabilities that are not remeasured at fair value on a recurring basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|NE LP and the Partnerships were permitted to adopt FAS 159, "The Fair Value Option for Financial Assets and Financial Liabilities" on January 1, 2008. NE LP and the Partnerships did not elect to account for any existing financial assets or liabilities under FAS 159 at January 1, 2008, but may elect to account for new financial assets and liabilities at fair value in the future.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|4.  Commitments and Contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|The long-term contractual obligations of NE LP and the Partnerships at March 31, 2008 are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   





|NE LP AND THE PARTNERSHIPS
March 31, 2008
(Thousands of Dollars)
|----------------------------------------------------------------



|                              | Total                                                                                                                                                                                                                |         | 2008    |   | 2009 - 10 |        | 2011 - 12 |         | Thereafter
|----------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- | ------- | - | --------- | ------ | --------- | ------- | ----------
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|CONTRACTUAL OBLIGATIONS       |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|The Partnerships:             |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|                              | Funding Corp. debt(a)                                                                                                                                                                                                | $       | 202,297 |   | $         | 67,304 |           | $       | 134,993   
|                              | Operating leases                                                                                                                                                                                                     |         | 1,318   |   |           | 232    |           |         | 654       
|                              | Other long-term obligations:                                                                                                                                                                                         |         |         |   |           |        |           |         |           
|                              | Administrative agreement(b)                                                                                                                                                                                          |         | 6,450   |   |           | 450    |           |         | 1,200     
|                              | O&M agreement(b)                                                                                                                                                                                                     |         | 13,125  |   |           | 1,125  |           |         | 3,000     
|                              | Fuel management agreement(b)                                                                                                                                                                                         |         | 14,175  |   |           | 675    |           |         | 1,800     
|                              | Natural gas, including transportation and storage                                                                                                                                                                    |         | 44,633  |   |           | 7,514  |           |         | 20,366    
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|Total Partnerships            |                                                                                                                                                                                                                      | 281,998 |         |   | 77,300    |        |           | 162,013 |           
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|NE LP:                        |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|                              | Acquisition Corp. debt(a)                                                                                                                                                                                            |         | 182,119 |   |           | 33,514 |           |         | 78,650    
|                              | Affiliate debt(a)                                                                                                                                                                                                    |         | 16,677  |   |           | 4,765  |           |         | 9,530     
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|Total NE LP                   |                                                                                                                                                                                                                      | 198,796 |         |   | 38,279    |        |           | 88,180  |           
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|Total contractual obligations | $                                                                                                                                                                                                                    | 480,794 |         | $ | 115,579   |        | $         | 250,193 |           
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|                              |                                                                                                                                                                                                                      |         |         |   |           |        |           |         |           
|(a)                           | Includes principal and interest.                                                                                                                                                                                    
|(b)                           | Represents the minimum obligation under the terms of the agreement. The minimum obligation is subject to an annual inflation factor adjustment, which is excluded from the minimum obligation included in the table.





|Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|This discussion should be read in conjunction with the Notes to Condensed Consolidated Financial Statements, Notes to Condensed Combined Financial Statements and Notes to Condensed Financial Statements contained herein (the Notes) and Management's Discussion and Analysis of Financial Condition and Results of Operations appearing in the 2007 Form 10-K for the registrants. The results of operations for an interim period generally will not give a true indication of results for the year. In the following discussion, all comparisons are with the corresponding items in the prior year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|NE LP Consolidated and the Partnerships - NE LP's consolidated net income for the first quarter of 2008 was $36.3 million compared to $22.0 million for the same period in 2007, and the Partnerships' net income for the first quarter of 2008 was $39.6 million compared to $25.9 million for the same period in 2007.  The increase in net income for the three months ended March 31, 2008 was due primarily to higher revenues net of purchased power of $62.4 million resulting from increased generation of power at the Partnerships' facilities in 2008 to fulfill their obligations under the power purchase agreements, decreases in unrealized mark-to-market losses on derivatives of $2.5 million, and lower interest expense of $1.9 million due to lower outstanding debt balances. These increases were partially offset by unfavorable pricing of $7.2 million under the power purchase agreements during the quarter, higher fuel expense of $44.8 million resulting from increased generation of power at the Partnerships' facilities in 2008, and a decrease of $1.5 million in energy bank amortization due to NEA's satisfaction of the energy bank liability balance in January 2007.                                                                                                                                                                     
|Revenue increased for the three months ended March 31, 2008 compared to the same period in 2007 primarily due to increased generation of power at the Partnerships' facilities in 2008, partially offset by unfavorable pricing of $7.2 million under the power purchase agreements during the quarter, and a decrease of $1.5 million in energy bank amortization due to NEA's satisfaction of the energy bank liability balance in January 2007. NE LP's revenues for the three months ended March 31, 2008 and 2007 were comprised of $116.7 million and $62.7 million of power sales to utilities, net of purchased power, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Fuel expense, net of fuel sales, increased for the three months ended March 31, 2008 compared to the same period in 2007 by $42.4 million due to higher fuel expense of $44.8 million resulting from increased generation of power at the Partnerships' facilities in 2008, partially offset by decreases in unrealized mark-to-market losses on derivatives of $2.5 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Operations and maintenance expense increased for the three months ended March 31, 2008 compared to the same period in 2007 primarily as a result of increased generation of power at the NJEA facility, in addition to a scheduled maintenance outage at the NEA facility.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Depreciation and amortization increased for the three months ended March 31, 2008 compared to the same period in 2007 due primarily to increased depreciation on combustion turbine assets resulting from increased generation of power at the NJEA facility.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|NE LP and the Partnerships make scheduled interest and principal payments on their outstanding debt. NE LP and the Partnerships are scheduled to make semi-annual principal and interest payments on June 30 and December 30. Under the terms of the trust indentures, the December 30, 2006 debt service payment was made on January 2, 2007, and included $19.2 million of accrued interest at December 31, 2006. Interest expense for NE LP and the Partnerships decreased in the first three months of 2008 due to decreasing principal balances on their outstanding debt.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Interest income decreased for the first quarter of 2008 compared to the same period in 2007 primarily due to decreased rates of return on cash balances.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|In connection with repair work performed on one of NEA's combustion turbines in November 2007, NE LP and the Partnerships recognized a loss on disposal of assets of $2.8 million in 2007. In March 2008 NEA entered into an agreement with a supplier (the Replacement Parts Agreement) where NEA will recover up to $2.1 million of the losses recognized on the disposed assets as credits against the future purchase of replacement turbine parts. In March 2008 NEA placed orders with the supplier for $3.6 million of replacement turbine parts, which utilized all of the credits under the Replacement Parts Agreement, and a $1.8 million recovery under that agreement has been recorded in other income for the three months ended March 31, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Transcontinental Gas Pipeline Corporation (Transco) filed a new general rate case on August 31, 2006 with the Federal Energy Regulatory Commission (FERC). The rate case proposed rate increases for most services, fueled largely by a proposed increase of approximately $250 million in the cost of service. NEA currently holds 50,508 MMBtu/day of capacity on Transco's system, and the proposed rates would have resulted in an annual increase of approximately $0.7 million in transportation costs for NEA. FPL Energy, LLC (FPL Energy) on behalf of NEA and other plants operated by FPL Energy, filed a protest of the rate increase with the FERC on September 12, 2006. The filed rates went into effect on March 1, 2007. On August 2, 2007, an agreement in principal was reached by the parties whereby the settle rates will result in an annual savings of $0.3 million in transportation costs for NEA from the filed rates, with the difference between any amounts paid on the filed rates and the settled rates through the date of the final settlement to be refunded to NEA.  On November 28, 2007, the proposed settlement agreement was submitted to the FERC for review and approval. The FERC accepted the settlement agreement on March 7, 2008. NEA anticipates receiving a refund of approximately $0.4 million under the settlement in mid-2008.
|The Funding Corp. and the Acquisition Corp. - Both the Funding Corp. and the Acquisition Corp. use interest income and principal payments received from the notes receivable from the Partnerships and NE LP, respectively, to make scheduled interest and principal payments on their outstanding debt. Both entities are scheduled to make semi-annual principal and interest payments on June 30 and December 30. Under the terms of the trust indentures, the December 30, 2006 debt service payment was made on January 2, 2007 and included $12.1 million and $7.1 million of accrued interest at December 31, 2006 for the Funding Corp. and the Acquisition Corp., respectively. Interest expense for both the Funding Corp. and Acquisition Corp. decreased in the first three months of 2008 as a result of decreasing principal balances on their outstanding debt.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Liquidity and Capital Resources                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|NE LP and the Partnerships - The decreases in net cash provided by operating activities for NE LP and the Partnerships for the three months ended March 31, 2008 compared to the three months ended March 31, 2007 were primarily due to increased payments for fuel resulting from the increased generation of power at the NJEA facility, partially offset by an increase in accounts receivable for generation of power at the NJEA facility and a decrease in cash paid for interest. The decrease in cash and cash equivalents at March 31, 2008 compared to March 31, 2007 is primarily the result of decreases in net cash provided by operating activities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Capital expenditures for the Partnerships were $2.1 million and $2.1 million for the three months ended March 31, 2008 and 2007, respectively, and related to various upgrades of equipment at the two generating facilities. For the three months ended March 31, 2008, the Partnerships acquired replacement turbine parts in a non-cash transaction with a value of $0.5 million under the Replacement Parts Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|NE LP and each of the Partnerships make scheduled interest and principal payments on their outstanding debt. Each is scheduled to make semi-annual principal and interest payments on June 30 and December 30. Under the terms of the trust indentures, the December 30, 2006 debt service payment was made on January 2, 2007, and included $19.2 million of accrued interest at December 31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|The Funding Corp. and the Acquisition Corp. - Both the Funding Corp. and the Acquisition Corp. use interest income and principal payments received from the notes receivable from the Partnerships and NE LP, respectively, to make scheduled interest and principal payments on their outstanding debt on June 30 and December 30. Under the terms of the trust indentures, the December 30, 2006 debt service payment was made on January 2, 2007, and included $12.1 million and $7.1 million of accrued interest at December 31, 2006 for the Funding Corp. and the Acquisition Corp., respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Market Risk Sensitivity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|Commodity Price Risk - The prices received by the Partnerships for power sales under their long-term contracts do not move precisely in tandem with the prices paid by the Partnerships for natural gas. To manage the price risk associated with purchases of natural gas and purchases of power, the Partnerships may, from time to time, enter into certain transactions either through public exchanges or by means of over-the-counter transactions with specific counterparties. The Partnerships manage their risk associated with purchases of natural gas and power through the use of natural gas and power swap agreements. The swap agreements require the Partnerships to pay a fixed price (absolutely or within a specified range) in return for a variable price on specified notional quantities of natural gas and power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|NE LP and the Partnerships use a value-at-risk (VaR) model to measure market risk in their trading and mark-to-market portfolios. The VaR is the estimated nominal loss of market value based on a one-day holding period at a 95% confidence level using historical simulation methodology. As of March 31, 2008 and December 31, 2007, the VaR figures (in thousands) are as follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            



|                                                  |                                                                                                                                                                                                                                                                                             | Trading and Managed Hedges(a) |   | Non-Qualifying Hedges and Hedges in
OCI(b) |   | Total
|------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | - | ------------------------------------------ | - | -----
|                                                  |                                                                                                                                                                                                                                                                                             |                               |   |                                            |   |      
|December 31, 2007                                 |                                                                                                                                                                                                                                                                                             | $                             | - |                                            | $ | 27   
|March 31, 2008                                    |                                                                                                                                                                                                                                                                                             | $                             | - |                                            | $ | 10   
|Average for the three months ended March 31, 2008 |                                                                                                                                                                                                                                                                                             | $                             | - |                                            | $ | 15   
|                                                 
|                                                  |                                                                                                                                                                                                                                                                                            
|(a)                                               | Trading and managed hedges are essentially all changes in the derivatives' fair value for power purchases and sales and trading activities, which are recognized on a net basis in operating revenues and for fuel purchases and sales which are recognized on a net basis in fuel expense.
|(b)                                               | Non-qualifying hedges are employed to reduce the market risk exposure to physical assets which are not marked to market. The VaR figures for the non-qualifying hedges and hedges in OCI category do not represent the economic exposure to commodity price movements.                     



|Concentration of Credit Risk - At March 31, 2008 and December 31, 2007, a majority of NE LP's and the Partnerships' trade receivables were derived from electricity sales to three utilities under long-term power purchase agreements. If any one or more of these customers' receivable balances should be deemed uncollectible, it could have a material adverse effect on NE LP's and the Partnerships' results of operations and financial condition.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                       
|See Management's Discussion and Analysis of Financial Condition and Results of Operations - Market Risk Sensitivity.                                                                                                                                                                                                                                                                                                                                      
|Item 4T.  Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                         
|(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(b)                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                          







|PART II - OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Item 1A.  Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|There were no material changes from the risk factors disclosed in the registrants' 2007 Form 10-K. The factors discussed in Part 1, Item 1A. Risk Factors in the Acquisition Corp.'s and NE LP's 2007 Form 10-K, as well as other information set forth in this report, which could materially affect the Acquisition Corp.'s and NE LP's business, financial condition and/or future operating results should be carefully considered. The risks described in the registrants' 2007 Form 10-K are not the only risks facing the registrants. Additional risks and uncertainties not currently known to the registrants, or that are currently deemed to be immaterial, also may materially adversely affect the registrants' business, financial condition and/or future operating results.
|Item 6.  Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Exhibit
Number                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|3.1(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|3.1.1(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|3.1.2(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|3.2(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|3.2.1(3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|3.3(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|3.4(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|3.5(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|3.6(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|3.7(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|3.8(2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|31(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|31(b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|31(c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|31(d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|32(a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|32(b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       



|(1) | Incorporated herein by reference from the Registration Statement on Form S-4 filed with the Securities and Exchange Commission by the Funding Corp. on February 9, 1995 (file no. 33-87902).                             
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Incorporated herein by reference from the Annual Report on Form 10-K filed by the Funding Corp. and the Partnerships on March 27, 1998 (file nos. 33-87902, 33-87902-01 and 33-87902-02).                                
|(3) | Incorporated herein by reference from the Registration Statement on Form S-4 filed with the Securities and Exchange Commission by the Acquisition Corp. and NE LP on May 12, 1998 (file nos. 333-52397 and 333-52397-01).







|SIGNATURES                                                                                                                                                                                   
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.



|                    | NORTHEAST ENERGY, LP
(ESI Northeast Energy GP, Inc. as Administrative General Partner)
  ESI TRACTEBEL ACQUISITION CORP.
(Registrants)                                                               | 
|------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|                    |                                                                                                                                                                                                      | 
|Date:  May 12, 2008
|                    |                                                                                                                                                                                                      | 
|                    |                                                                                                                                                                                                      | 
|                    |                                                                                                                                                                                                      | 
|                    | MARK R. SORENSEN                                                                                                                                                                                     | 
|                    |                                                                                                                                                                                                      | 
|                    | Mark R. SorensenVice President and Treasurer of ESI Northeast Energy GP, Inc.
 Treasurer of ESI Tractebel Acquisition Corp.(Principal Financial and Principal Accounting Officer of the Registrants) |