ANNUAL REPORT PUBLIC UTILITIES COMMISSION STATE OF MAINE. YEAR ENDED December 31, 2016 TO THE OF THE FOR THE. Central Maine Power Company.

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1 ANNUAL REPORT OF Name Address 83 Edison Drive, Augusta, ME TO THE PUBLIC UTILITIES COMMISSION OF THE STATE OF MAINE FOR THE YEAR ENDED December 31, 2016

2 PART I : IDENTIFICATION 01 Exact Legal Name of Respondent 02 Year of Report 03 Previous Name and Date of Change (If name changed during year) December 31, Address of Principal Business Office at End of Year (Street, City, State, Zip Code) 83 Edison Drive, Augusta, ME Name of Contact Person 06 Title of Contact Person Jack E. Jessop Director, Networks Accounting 07 Address of Contact Person (Street, City, State, Zip Code) 70 Farm View Drive, New Gloucester, ME Telephone and of Contact Person 09 This Report Is 10 Date of Report (1) An Original (2) A Resubmission (Mo, Da, Yr) X Jack.Jessop@Avangrid.com 11 Name of Officer Having Custody of the Books of Account 12 Title of Officer Eric N. Stinneford Vice President, Controller, Treasurer and Clerk 13 Address of Officer Where Books of Account Are Kept (Street, City, State, Zip code) 83 Edison Drive, Augusta, ME Name of State Where 15 Date of Incorporation 16 If applicable, Reference to Law Respondent is Incorporated (Mo, Da, Yr) Incorporated Under Chapter 129, Private and Special Laws of 1905 of the Maine 7/20/1905 State of Maine 17 Explanation of Manner and Extent of Corporate Control (If the respondent controls or is controlled by any other corporation, business trust, or similar organization) The Merger between Energy East Corporation and Green Acquisition Capital, Inc., a wholly-owned subsidiary of Iberdrola S.A. (Iberdrola) became effective September 16, As a result of the merger, Iberdrol holds through direct ownership, 100% of the voting stock of CMP Group. On December 1, 2009, Energy East changed its legal and operating name to Iberdrola USA, Inc. On November 20, 2013, Iberdrola USA Networks, Inc. was formed when Iberdrola USA, Inc. was reorganized to become the parent company of Iberdrola USA Networks, Inc. Iberdrola USA Networks, Inc. was a wholly-owned subsidiary of Iberdrola USA, Inc. In late 2015, Avangrid, Inc., formerly Iberdrola USA, Inc., was reorganized to become the parent company of Avangrid Networks, Inc., formerly Iberdrola USA Networks Inc. PART II: ATTESTATION The undersigned officer certifies that he/she has examined the accompanying report; that to the best of his/her knowledge, information, and belief, all statements of fact contained in the accompanying report are true and the accompanying report is a correct statement of the business and affairs of the above named respondent in respect to each and every matter set forth therein during the period from and including January 1 to and including December 31 of the year of the report. 01 Name 03 Signature 04 Date Signed (Mo/ Da/Year) Eric N. Stinneford 02 Title Vice President, Controller, Treasurer and Clerk 4/3/2017 MPUC Page 1 IOU T&D

3 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 AFFILIATED INTERESTS Include on this page, a summary listing of all affiliated interests of the respondent and its parent. Indicate the relationship to the parent and the respondent and the percentage owned by the corporate group. (Refer to M.R.S.A. 707 for the definition of affiliated interests. CMP Group, Inc: 100% common stock owned by Avangrid Networks, Inc. : 100% common stock owned by CMP Group, Inc. NORVARCO: 100% owned by Chester SVC Partnership: 50% Owned by NORVARCO Maine Electric Power Company, Inc. (MEPCO): 78.3% owned by MaineCom Services: 100% owned by CMP Group, Inc. The Union Water-Power Company: 100% owned by CMP Group, Inc. Maine Yankee Atomic Power Company: 38% owned by Avangrid Networks Inc., is a wholly owned subsidiary of Avangrid, Inc., which is a 81.5% owned subsidiary of Iberdrola, S.A. (Iberdrola), a corporation organized under the laws of the Kingdom of Spain. MPUC Page 2

4 Name of Respondent This Report is: Date of Report Year of Report (2) A Resubmission Dec. 31, 2016 PART III: COMPARATIVE BALANCE SHEET Ref. Balance at Balance at Line Title of Account Page No. Beginning of Year End of Year No. (a) (b) (c) (d) UTILITY PLANT 02 Utility Plant ( , 114) $3,917,474,732 $4,066,205, Construction Work in Progress (107) $153,002,593 $159,122, TOTAL Utility Plant (Enter Total of lines 2 and 3) $4,070,477,325 $4,225,328, (Less) Accum. Prov. for Depr. Amort. Depl. (108, 111, 115) ($809,732,946) ($878,530,272) 06 Net Utility Plant (Enter total of line 04 less 05) $3,260,744,379 $3,346,797, Nuclear Fuel ( , 120.6) 08 (Less) Accum. Prov. for Amort. of Nucl. Fuel Assemblies (120.5) 09 Net Nuclear Fuel (Enter Total of Line 7 less 8) $0 $0 10 Net Utility Plant (Enter Total of lines 6 and 9) $3,260,744,379 $3,346,797, Utility Plant Adjustments (116) 12 Gas Stored Underground-Noncurrent (117) OTHER PROPERTY AND INVESTMENTS Nonutility Property (121) $8,334,663 $9,684, (Less) Accum. Prov. for Depr. and Amort. (122) ($1,369,977) ($1,377,344) 16 Investments In Associated Companies (123) 17 Investments In Subsidiary Companies (123.1) $26,755,195 $27,410, (For Cost of Account 123.1, See Footnote Page 224, line 42) 19 Noncurrent Portion of Allowances 20 Other Investments (124) 21 Special Funds ( ) $414,978 $406, TOTAL Other Property and Investments (Total lines 14-17, 19-21) $34,134,859 $36,124, CURRENT AND ACCRUED ASSETS Cash (131) $915,872 $1,699, Special Deposits ( ) $173,150 $197, Working Funds (135) $5,180 $5, Temporary Cash Investments (136) $1,000 $1, Notes Receivable (141) 29 Customer Accounts Receivable (142) $78,302,576 $77,475, Other Accounts Receivable (143) $48,334,090 $101,869, (Less) Accum. Prov. for Uncollectible Acct.-Credit (144) ($3,226,642) ($2,861,377) 32 Notes Receivable from Associated Companies (145) $22,750,000 $32,100, Accounts Receivable from Assoc. Companies (146) $3,550,719 $1,667, Fuel Stock (151) 35 Fuel Stock Expenses Undistributed (152) 36 Residuals (Elec) and Extracted Products (Gas) (153) 37 Plant Materials and Operating Supplies (154) $15,247,626 $14,437, Merchandise (155) 39 Other Materials and Supplies (156) 40 Nuclear Materials Held for Sale (157) 41 Allowances (158.1 and 158.2) 42 (Less) Noncurrent Portion of Allowances 43 Stores Expense Undistributed (163) 44 Gas Stored Underground - Current (164.1) 45 Liquefied Natural Gas Stored and Held for Processing ( ) 46 Prepayments (165) $103,037,384 $11,660, Advances for Gas ( ) 48 Interest and Dividends Receivable (171) $34,934 $13, Rents Receivable (172) 50 Accrued Utility Revenues (173) $23,112,603 $28,309, Miscellaneous Current and Accrued Assets (174) 52 TOTAL Current and Accrued Assets (Enter Total of lines 24 thru 51) $292,238,492 $266,575,040 MPUC Page 3 IOU T&D

5 Name of Respondent This Report is: Date of Report Year of Report (2) A Resubmission Dec. 31, 2016 COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS) (Continued) Ref. Balance at Balance at Line Title of Account Page No. Beginning of Year End of Year No. (a) (b) (c) (d) DEFERRED DEBITS Unamortized Debt Expense (181) $4,713,036 $4,227, Extraordinary Property Losses (182.1) 56 Unrecovered Plant and Regulatory Study Costs (182.2) 57 Other Regulatory Assets (182.3) $541,571,516 $506,326, Prelim. Survey and Investigation Charges (Electric) (183) $2,161,196 $15,856, Prelim. Sur. and Invest. Charges (Gas) (183.1, 183.2) 60 Clearing Accounts (184) 61 Temporary Facilities (185) 62 Miscellaneous Deferred Debits (186) $4,341,999 $2,906, Def. Losses from Disposition of Utility Plt. (187) 64 Research, Devel. and Demonstration Expend. (188) 65 Unamortized Loss on Reacquired Debt (189) $1,269,462 $1,020, Accumulated Deferred Income Taxes (190) $51,833,225 $54,739, Unrecovered Purchased Gas Costs (191) 68 TOTAL Deferred Debits i(enter Total of lines 54 thru 67) $605,890,434 $585,077, TOTAL Assets and other Debits (Enter Total of lines 10, 11, 12, 22, 52, and 68) $4,193,008,164 $4,234,574,723 MPUC Page 4

6 (SUBSTITUTE PAGE FOR PART III) Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 COMPARATIVE BALANCE SHEET (LIABILITIES AND CREDITS) (Continued) Line Ref. Balance at Balance at No. Title of Account Page No. Beginning of Year End of Year (a) (b) (c) (d) 1 2 PROPRIETARY CAPITAL Common Stock Issued (201) $156,057,355 $156,057,355 3 Preferred Stock Issued (204) $571,300 $571,300 4 Capital Stock Subscribed (202, 205) 5 Stock Liability for Conversion (203, 206) 6 Premium on Capital Stock (207) $269,813,541 $269,813,541 7 Other Paid-In Capital ( ) $444,078,684 $494,078,684 8 Installments Received on Capital Stock (212) 9 (Less) Discount on Capital Stock (213) 10 (Less) Capital Stock Expense (213) 11 Retained Earnings (215, 215.1, 216) $770,936,408 $804,807, Unappropriated Undistributed Subsidiary Earnings (216.1) $6,262,122 $6,917,166 13a (Less) Reacquired Capital Stock (217) 13b (Less) Accumulated Other Comprehensive Income ($8,514,705) ($6,647,364) 14 TOTAL Proprietary Capital (Enter Total of lines 2 thru 13b) $1,639,204,705 $1,725,598, LONG-TERM DEBT XXXXXXXXXXXXXXX XXXXXXXXXXXXXXX 16 Bonds (221) $1,080,000,000 $1,040,000, (Less) Reacquired Bonds (222) Advances from Associated Companies (223) Other Long-Term Debt (224) Unamortized Premium on Long-Term Debt (225) 21 (Less) Unamortized Discount on Long-Term Debt-Debit. (226) ($51,428) ($36,390) 22 TOTAL Long-Term Debt (Enter Total of lines 16 thru 21) $1,079,948,572 $1,039,963, OTHER NONCURRENT LIABILITIES XXXXXXXXXXXXXXXX XXXXXXXXXXXXXXX 24 Obligations Under Capital Leases - Noncurrent (227) $3,541,852 $2,941, Accumulated Provision for Property Insurance (228.1) 26 Accumulated Provision for Injuries and Damages (228.2) $3,067,647 $4,785, Accumulated Provision for Pensions and Benefits (228.3) $226,559,841 $194,715, Accumulated Miscellaneous Operating Provision (228.4) $5,874,184 $4,432,599 29a Accumulated Provision for Rate Refunds (229) $20,897,814 $21,591,711 29b Long Term Portion of Derivative Instrument - Liabilities Hedge $269,732 29c Asset Retirement Obligation (230) $751,981 $792, TOTAL Other Noncurrent Liabilities (Enter Total of lines 25 thru 29b) $260,963,051 $229,258, CURRENT AND ACCRUED LIABILITIES XXXXXXXXXXXXXXX XXXXXXXXXXXXXXX 32 Notes Payable (231) 33 Accounts Payable (232) 34 Notes Payable to Associated Companies (233) 35 Accounts Payable to Associated Companies (234) 36 Customer Deposits (235) 37 Taxes Accrued (236) Interest Accrued (237) 39 Dividends Declared (238) 40 Matured Long-Term Debt (239) 41 Matured Interest (240) 42 Tax Collections Payable (241) 43 Miscellaneous Current and Accrued Liabilities (242) 44a Obligations Under Capital Leases-Current (243) 44b Derivative Instrument Liabilities -- Hedges 44c (Less) Long Term Portion of Derivative Instrument Liabilities - Hedges $93,747,098 $34,478,641 $19,914,977 $15,108,775 $18,652,938 $1,542,282 $34,473,869 $645,531 $665,038 $123,335,660 $35,977,576 $15,776,157 $562,536 $17,836,278 $1,572,811 $28,826,684 $4,482,243 $164, TOTAL Current and Accrued Liabilities (Enter Total of lines 32 thru 44) $219,229,149 $228,534,191 MPUC Page 5 IOU T&D

7 (SUBSTITUTE PAGE FOR PART III) Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 Line Ref. Balance at Balance at No. Title of Account Page No. Beginning of Year End of Year (a) (b) (c) (d) DEFERRED CREDITS Customer Advances for Construction (252) $217,700 $217, Accumulated Deferred Investment Tax Credits (255) 49 Deferred Gains from Disposition of Utility Plant (256) 50 Other Deferred Credits (253) $18,664,493 $16,859, Other Regulatory Liabilities (254) $99,956,649 $96,702, Unamortized Gain on Reacquired Debt (257) 53 Accumulated Deferrred Income Taxes ( ) $874,823,845 $897,440, TOTAL Deferred Credits (Enter Total of lines 47 thru 53) $993,662,687 $1,011,219, TOTAL Liabilities and Other Credits (Enter Total of lines 14, 22, and 54) $4,193,008,164 $4,234,574,723 MPUC Page 6 IOU T&D

8 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 STATEMENT OF INCOME FOR THE YEAR 1. Report amounts for accounts 412 and 413, 5. Give concise explanations concerning unsettled Revenue and Expenses from Utility Plant Leased to rate proceedings where a contingency exists such that Others, in another utility column (i,k,m,o) in a similar refunds of a material amount may need to be made to manner to a utility department. Spread the amount(s) the utility's customers or which may result in a material over lines 02 thru 24 as appropriate. Include these refund to the utility with respect to power or gas puramounts in columns (c) and (d) totals. chases. State for each year affected the gross revenues 2. Report amounts in account 414, Other Utility or costs to which the contingency relates and the tax ef- Operating Income, in the same manner as accounts 412 fects together with an explanation of the major factors and 413 above. which affect the rights of the utility to retain such revenues 3. Report data for lines 7,9, and 10 for Natural Gas or recover amounts paid with respect to power and gas companies using accounts 404.1,404.2,404.3, purchases. and Give concise explanations concerning significant 4. Use page 122 for important notes regarding the amounts of any refunds made or received during the year statement of income for any account thereof. TOTAL (Ref.) Line Account Page No. No. Current Year Previous Year (a) (b) (c) (d) 1 UTILITY OPERATING INCOME 2 Operating Revenues (400) Operating Expenses 4 Operation Expenses (401) Maintenance Expenses (402) Depreciation Expense (403) 7 Amort. & Depl. of Utility Plant ( ) 8 Amort. of Utility Plant Acq. Adj. (406) 9 Amort of Property Losses, Unrecovered Plant and Regulatory Study Costs (407) 10 Amort. of Conversion Expenses (407) 11 Regulatory Debits (407.3) 12 (Less) Regulatory Credits (407.4) 13 Taxes Other Than Income Taxes (408.1) Income Taxes - Federal (409.1) Other (409.1) Provision for Deferred Income Taxes (410.1) 17 (Less) Provision for Deferred Income Taxes-Cr. (411.1) 18 Investment Tax Credit Adj. - Net (411.4) 19 (Less) Gains from Disp. of Utility Plant (411.6) 20 Losses from Disp. of Utility Plant (411.7) 21 (Less) Gains from Disposition of Allowances (411.8) 22 Losses from Disposition of Allowances (411.9) $826,934,599 $350,880,957 $67,789,597 $93,425,964 $5,417,244 $47,789,908 $52,175,856 $12,815,969 $336,037,843 ($323,214,012) $809,280,758 $358,938,858 $71,561,434 $92,773,790 $5,588,901 $1,563,155 $41,013,273 ($17,213,659) $20,611,556 $397,818,194 ($327,725,672) 23 TOTAL Utility Operating Expenses $643,119,326 $644,929,830 (Enter Total of lines 4 thru 22) 24 Net Utility Operating Income (Enter Total of $183,815,273 $164,350,928 line 2 less 23) (Carry forward to page 117, line 25) MPUC Page 7 IOU T&D

9 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 STATEMENT OF INCOME FOR THE YEAR (Continued) resulting from settlement of any rate proceeding affect- basis of allocations and apportionments from those used ing revenues received or costs incurred for power or gas in the preceding year. Also give the approximate dollar purchases, and a summary of the adjustments made to effect of such changes. balance sheet, income, and expense accounts. 9. Explain in a footnote if the previous year's figures 7. If any notes appearing in the report to stockholders are different from that reported in prior reports. are applicable to this Statement of Income, such notes 10. If the columns are insufficient for reporting addimay be attached at page 19. tional utility departments, supply the appropriate account 8. Enter on page 19 a concise explanation of only titles, lines 2 to 23, and report the information in the blank those changes in accounting methods made during the space on page 19 or in a supplemental statement year which had an effect on net income, including the ELECTRIC UTILITY GAS UTILITY OTHER UTILITY Line Current Year Previous Year Current Year Previous Year Current Year Previous Year No. (e) (f) (g) (h) (i) (j) $826,934,599 $809,280, $350,880,957 $358,938,858 4 $67,789,597 $71,561,434 5 $93,425,964 $92,773,790 6 $5,417,244 $5,588,901 7 $0 $0 8 $0 $1,563,155 9 $0 $0 $0 $0 10 $0 $0 11 $0 $0 12 $47,789,908 $41,013, $52,175,856 ($17,213,659) 14 $12,815,969 $20,611, $336,037,843 $397,818, ($323,214,012) ($327,725,672) 17 $0 $0 18 $0 $0 19 $0 $0 20 $0 $0 21 $0 $0 22 $643,119,326 $644,929,830 $0 $0 $0 $0 23 $183,815,273 $164,350,928 $0 $0 $0 $ MPUC Page 8 IOU T&D

10 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 STATEMENT OF INCOME FOR THE YEAR TOTAL Ref Page Account Number Current Year Previous Year Line (a) (b) (c) (d) No. 25 Net Utility Operating Income (Carried forward from page 12) $183,815,273 $164,350, Other Income and Deductions Other Income Nonutility Operating Income Revenues from Merchandising, Jobbing, and Contract Work (415) (Less) Costs and Exp. of Merch., Job, & Contract Work (416) Revenues From Nonutilty Operations (417) $ (Less) Expenses of Nonutility Operations (417.1) Nonoperating Rental Income (418) ($7,252) 34 Equity in Earnings of Subsidiary Companies (418.1) $1,540,573 $1,290, Interest and Dividend Income (419) $729,962 $385, Allowance for Other Funds Used During Construction (419.1) $3,643,545 $5,616, Miscellaneous Nonoperating Income (421) $362,818 $742, Gain on Disposition of Property (421.1) $79,973 $128, TOTAL Other Income (Enter Total of lines 29 thru 38) $6,349,619 $8,163, Other Income Deductions Loss on Disposition of Property (421.2) ($2,633) $3, Miscellaneous Amortization (425) Miscellaneous Income Deductions ( ) $653,430 $2,327, TOTAL Other Income Deductions (Total of lines 41 thru 43) $650,797 $2,331, Taxes Applic. to Other Income and Deductions Taxes Other Than Income Taxes (408.2) $134,110 $141, Income Taxes - Federal (409.2) $1,528,516 $1,753, Income Taxes - Other (409.2) $428,231 $491, Provision for Deferred Inc. Taxes (410.2) (Less) Provision for Deferred Income Taxes - Cr. (411.2) Investment Tax Credit Adj. - Net (411.5) (Less) Investment Tax Credits (420) TOTAL Taxes on Other Inc. and Ded. (Total of 46 thru 52) $2,090,857 $2,385, Net Other Income and Deductions (Enter Total line 39 less 44 & 53) $3,607,965 $3,446, Interest Charges Interest on Long-Term Debt (427) $50,201,880 $52,050, Amort. of Debt Disc. and Expense (428) $504,578 $514, Amortization of Loss on Reaquired Debt (428.1) $248,801 $295, (Less) Amort. of Premium on Debt-Credit (429) (Less) Amortization of Gain on Reaquired Debt-Credit (429.1) Interest on Debt to Assoc. Companies (430) $224,675 $17, Other Interest Expense (431) $2,309,406 $3,164, (Less) Allowance for Borrowed Funds Used During Const.- Cr.(432) ($1,512,122) ($2,126,209) 64 Net Interest Charges (Enter Total of lines 56 thru 63) $51,977,218 $53,916, Income Before Extraordinary Items (Enter Total of lines 25, 54, less 64) $135,446,020 $113,880, Extraordinary Items Extraordinary Income (434) (Less) Extraordinary Deductions (435) Net Extraordinary Items (Enter Total of lines 67 and 68) $0 $ Income Taxes - Federal and Other (409.3) Extraordinary Items After Taxes (Enter Total of line 69 less line 70) $0 $0 72 Net Income (Enter Total of lines 65 and 71) $135,446,020 $113,880,738 MPUC Page 9

11 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 STATEMENT OF RETAINED EARNINGS FOR THE YEAR 1. Report all changes in appropriated retained earnings, unappropriated retained earnings, and 5. Show dividends for each class and series of unappropriated undistributed subsidiary earnings capital stock. for the year. 6. Show separately the State and Federal income tax 2. Each credit and debit during the year effect of items shown in Account 439, Adjustments to should be identified as to the retained earnings Retained Earnings. account in which recorded (Accounts 433, Explain in a footnote the basis for determining inclusive). Show the contra primary account the amount reserved or appropriated. If such reseraffected in column (b). vation or appropriation is to be recurrent, state the 3. State the purpose and amount for each number and annual amounts to be reserved or appropriated reservation or appropriation of retained earnings. as well as the totals eventually to be accumulated. 4. List first Account 439, Adjustments to 8. If any notes appearing in the report to stock- Retained Earnings, reflecting adjustments to the holders are applicable to this statement, attach them opening balance of retained earnings. Follow by at page 19. credit, then debit items, in that order. Contra Line Item Primary Amount No. Account Affected (a) (b) (c) UNAPPROPRIATED RETAINED EARNINGS (Account 216) 1 Balance-Beginning of Year $770,936,408 2 Changes (Identify by prescribed retained earnings accounts) 3 Adjustments to Retained Earnings (Account 439) 4 Credit: 5 Credit: 6 Credit: 7 Credit: 8 Credit: 9 TOTAL Credits to Retained Earnings (Account 439)(Enter Total of lines 4 thru 8) $0 10 Debit: 11 Debit: 12 Debit: 13 Debit: 14 Debit: 15 TOTAL Debits to Retained Earnings (Account 439)(Enter Total of lines 10 thru 14) $0 16 Balance Transferred from Income (Account 433 less Account 418.1) $133,905, Appropriations of Retained Earnings (Account 436) TOTAL Appropriations of Retained Earnings (Account 436)(Total of lines 18 thru 21) $0 23 Dividends Declared-Preferred Stock (Account 437) 24 6% Preferred Stock ($34,278) 29 TOTAL Dividends Declared-Preferred Stock (Account 437)(Total of lines 24 thru 28) ($34,278) 30 Dividends Declared-Common Stock (Account 438) ($100,000,000) 36 TOTAL Dividends Declared-Common Stock (Account 438)(Total of lines 31 thru 35) ($100,000,000) 37 Transfers from Acct , Unappropriated Undistributed Subsidiary Earnings 38 Balance-End of Year (Total of lines 01, 09, 15, 16, 22, 29, 36 and 37) $804,807,577 MPUC Page 10

12 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 STATEMENT OF RETAINED EARNINGS FOR THE YEAR (Continued) Line Item Amount No. (a) (b) APPROPRIATED RETAINED EARNINGS (Account 215) State balance and purpose of each appropriated retained earnings amount at end of year and give accounting entries for any applications of appropriated retained earnings during the year TOTAL Appropriated Retained Earnings (Account 215) APPROPRIATED RETAINED EARNINGS-AMORTIZATION RESERVE, FEDERAL (Account State below the total amount set aside through appropriations of retained earnings, as of the end of the year, in compliance with the provisions of Federally granted hydroelectric project licenses held by the respondent. If any reductions or changes other than the normal annual credits hereto have been made during the year, explain such items in a footnote. 46 TOTAL Appropriated Retained Earnings-Amortization Reserve, Federal (Account 215.1) 47 TOTAL Appropriated Retained Earnings (Accounts 215,215.1)(Enter Total of lines 45 & 46) $0 48 TOTAL Retained Earnings (Account 215,215.1,216) (Enter Total of lines 38 and 47) $804,807,577 UNAPPROPRIATED UNDISTRIBUTED SUBSIDIARY EARNINGS (216.1) 49 Balance-Beginning of Year (Debit or Credit) $6,262, Equity in Earnings for Year (Credit) (Account 418.1) $1,540, (Less) Dividends Received (Debit) ($885,529) 52 Other Changes (Explain) 53 Balance-End of Year (Total of lines 49 thru 52) $6,917,166 MPUC Page 11

13 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 STATEMENT OF CASH FLOWS 1. If the notes to the cash flow statement in the responde 2. Under "Other" specify significant amounts and group annual stockholders report are applicable to this state- others. ment, such notes should be attached to page 19. Infor 3. Operating Activities-Other: Include gains and losses permation about noncash investing and financing activities taining to operating activities only. Gains and losses pershould be provided on page 19. Provide also on page 19 taining to investing and financing activities should be a reconciliation between "Cash and Cash Equivalents at reported in those activities. Show on page 19 the amounts End of Year" with related amounts on the balance sheet. of interest paid (net of amounts capitalized) and income taxes paid. Line DESCRIPTION (See instructions for Explanation of Codes) Amount No. (a) (b) 1 2 Net Cash Flow from Operating Activities Net Income for Northern (from page 14) $135,446,020 3 Noncash Charges (Credits) to Income: 4 Depreciation and Depletion $101,137,587 5 Amortization of (Specify) Other Assets & Liabilities ($10,538,585) 6 Amortization and Depletion of Utility Plant $5,417,244 7 Pension Income (Expense) $22,432,953 8 Deferred Income Taxes (Net) $12,823,831 9 Investment Tax Credit Adjustments (Net) 10 Net (Increase) Decrease in Receivables $35,011, Net (Increase) Decrease in Inventory $809, Net Increase (Decrease) in Fuel Purchase Commitments 13 Net Increase (Decrease) in Payables and Accrued Expenses $240, Net (Increase) Decrease in Other Regulatory Assets ($7,060,474) 15 Net Increase (Decrease) in Other Regulatory Liabilities $27,227, (Less) Allowance for Other Funds Used During Construction ($3,643,545) 17 (Less) Undistributed Earnings from Subsidiary Companies ($655,044) Other: Miscellaneous ($3,627,759) 18 Pension & Other Post Retirement Benefit Contributions ($20,735,715) 19 Net Increase (Decrease) in Accrued Interest Expense 20 Net (Increase) Decrease in Deferred Fuel Costs 21 Net Cash Provided by (Used in) Operating Activities 22 (Total of lines 2 thru 20) $294,286, Cash Flows from Investment Activities Construction and Acquisition of Plant (including land): 26 Gross Additions to Utility Plant (less nuclear fuel) ($194,349,283) 27 Gross Additions to Nuclear Fuel 28 Gross Additions to Common Utility Plant 29 Gross Additions to Nonutility Plant ($1,350,197) 30 (Less) Allowance for Other Funds Used During Construction $3,643, Other: Cash Outflows for Plant (Total of lines 26b thru 33) ($192,055,935) Acquisition of Other Noncurrent Assets (d) 37 Proceeds from Disposal of Noncurrent Assets (d) Investments in and Advances to Assoc. and Subsidiary Companies 40 Contributions and Advances from Assoc. and Subsidiary Companies Disposition of Investments in (and Advances to) Associated and Subsidiary Companies Purchase of Investment Securities (a) 45 Proceeds from Sales of Investment Securities (a) MPUC Page 12 IOU T&D

14 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 STATEMENT OF CASH FLOWS (Continued) 4. Investing Activities 5. Codes used: Include at Other (line 31) net cash outflow to acquire other (a) Net proceeds or payments. companies. Provide a reconciliation of assets acquired with (b) Bonds, debentures and other long-term liabilities assumed on page 19. (c) Include commercial paper. Do not include on this statement the dollar amount of (d) Identify separately such items as investments, leases capitalized per USofA General Instruction 20; in- fixed assets, intangibles, etc. stead provide a reconciliation of the dollar amount of leases capitalized with the plant cost on page Enter on page 19 clarifications and explanations Line DESCRIPTION (See Instruction No. 5 for Explanation of Codes) Amount No. (a) (b) 46 Loans Made or Purchased 47 Collections on Loans Net (Increase) Decrease in Receivables 50 Net (Increase) Decrease in Inventory 51 Net (Increase) Decrease in 52 Allowances Held for Speculation 53 Net Increase (Decrease) in Payables and Accrued Expenses 54 Other: Subsidiary Companies ($9,350,000) Net Cash Provided by (Used in) Investing Activities 57 (Total of lines 34 thru 55) ($201,405,935) Cash Flows from Financing Activities Proceeds from Issuance of: 61 Long-Term Debt (b) 62 Preferred Stock 63 Common Stock 64 Other: Equity infusion $50,000, Net Increase in Short-Term Debt (c) 67 Other: Cash Provided by Outside Sources (Total of lines 61 thru 69) $50,000, Payments for Retirement of Long-Term Debt (b) ($40,000,000) 74 Preferred Stock 75 Common Stock 76 Other: Obligation under Capital Leases ($2,038,416) Net Decrease in Short-Term Debt (c) Dividends on Preferred Stock ($34,278) 81 Dividends on Common Stock ($100,000,000) 82 Net Cash Provided by (Used in) Financing Activities 83 (Total of lines 70 thru 81) ($92,072,694) Net Increase (Decrease) in Cash and Cash Equivalents 86 (Total of lines 22, 57 and 83) $808, Cash and Cash Equivalents at Beginning of Year $1,095, Cash and Cash Equivalents at End of Year $1,903,266 MPUC Page 13

15 Name of Respondent: For the Year Ended: December 31, 2016 REVENUES SUBJECT TO MPUC ASSESSMENT Subject to Assessment* Not Subject to Assessment Total REVENUES FROM ELECTRIC SALES Revenues (not Including Standard Offer Revenue) Transmission & Distribution Revenues $306,261,937 $306,261,937 Standard Offer Revenues $0 Other Revenues $0 505 Sales to Other Electric Utilities and Interstate Sales $22,702,923 $22,702,923 $0 $0 Total Sales from Delivery of Electric Energy $306,261,937 $22,702,923 $328,964,860 OTHER ELECTRIC REVENUES 510 Rent from Electric Property: $0 Equipment and Transformers $1,099,236 $1,099,236 Special Facilities Charge $665,929 $665,929 Pole Space Rental and Other $17,181,299 $17,181,299 $0 511 Interdepartmental Rents $0 $0 512 Customers Forfeited Discounts and Penalties $2,371,717 $2,371,717 $0 513 Misc. Electric Revenues: $0 Service Charges, Line Extensions $0 Wheeling and Transmission $477,122,737 $477,122,737 Support Payments $0 Unbilled Revenue $0 Other (Explain) See Note B & C ($13,271,099) $7,431,148 ($5,839,951) Miscellaneous Service Revenues $3,520,797 $3,520,797 Billing & Collections Revenue $1,847,975 $1,847,975 $0 $0 Total Other Electric Revenues ($3,765,445) $501,735,184 $497,969,739 Total Electric Operating Revenues $302,496,492 $524,438,107 $826,934,599 * 35 M.R.S.A. 17 as Amended Comments: Note A: Unbilled Revenues are included in Revenues, Accounts , Note B: Other Revenues Subject to Assessment include sundry overhead charges, contributions in aid of construction, insufficient check fees and amortizations and deferrals of Regulatory Assets/Liabilities. MPUC Page 14 T&D IOU Note C: Other Revenues Not Subject to Assessment include magnetic tape fees, intercompany transactions, and other miscellaneous revenues.

16 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 DELIVERY OF ELECTRICITY BY RATE SCHEDULE 1. Report below for each rate schedule in effect during the year the MWH of electricity delivered, revenue, average number of customer, average Kwh per customer, and average revenue per Kwh, excluding data for Sales for Resale. 2. Provide a subheading and total for each prescribed operating revenue account in the sequence followed in "Electric Operating Revenues", FERC Form 1, page If the sales under any rate schedule are classified in more than one revenue account, list the rate schedule and sales data under each applicable revenue account subheading. 3. Where the same customers are served under more than one rate schedule in the same revenue account classification (such as a general residential schedule and an off peak water heating schedule), the entries in column (d) for the special schedule should denote the duplication in number of reported customers. 4. The average number of customers should be the number of bills rendered during the year divided by the number of billing periods during the year (12 if all billings are made monthly). 5. For any reschedule having a fuel adjustment clause state in a footnote the estimated additional revenue billed thereto. 6. Report amount of unbilled revenue as of end of year for each applicable revenue subheading. Average Line Number and Title of Rate Schedule MWh Sold Revenue Number of Customers KWh of Sales per Customer Revenue per KWh Sold No. (a) (b) (c) (d) (e) (f) 1 Residential Sales: 2 Residential Inverted 3,552,535 $289,778, ,279 6, Load Management 1,080 $51, , Time of Use 76,688 $6,155,960 6,127 12, Retired Employee 32 $2, , Unbilled Distribution Sales $1,820,192 7 Transmission Revenues (3,630,335) ($92,507,769) Commodity - Coburn Gore 88 $12, Total (Account 440) 88 $205,313, ,588 2, Commercial & Industrial Sales: 12 Small General Service 577,546 $42,578,408 52,981 10, Medium General Service 1,936,628 $83,037,853 10, , Intermediate General Service 590,711 $23,090, ,298, Large General Service 2,029,107 $27,940, ,142, Intercompany Electric Delivery $56, Other 187,928 $4,869,497 1, , Unbilled Distribution Sales ($181,087) 19 Transmission Revenues (5,321,920) ($89,676,141) Commodity - Coburn Gore 205 $33, Total (Account 442) 205 $91,749,320 65, Public Street & Highway Lighting: 24 Street Lights 26,805 $7,079, , Area Lights 9,282 $2,095, Unbilled Distribution Sales $97, Transmission Revenues (36,087) ($669,974) Commodity - Coburn Gore 2 $ Total (Account 444) 2 $8,602, , Intracompany Electric Delivery $596, Total (Account 448) $596, Total Billed 295 $304,524, , , Total Unbilled Revenue 0 $1,737, Total 295 $306,261, , , MPUC Page 15

17 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 Chapter 820 Reporting Requirements Summary of Affiliated Transactions Provide a reporting of all transactions with affilitiates during the past year in accordance with the requirements of Chapter 820 of the Public Utilities Commission's Rules and Regulations. Please refer to page 16a for Chapter Annual Report. MPUC Page 16

18 MPUC Chapter 820 Report Year Ended December 31, 2016 Affiliate Name Equipment Facilities Materials Other Personnel Services CWIP Company Total AVANGRID Service Company 499, ,631 AVANGRID Networks, Inc. 43, ,716 New York State Electric & Gas Corporation 23,608 18,016 3, , ,560 1,474 17,707 1,291,534 Rochester Gas and Electric Corporation 26,097 18,201 1, , ,473 1,394 6, ,186 MaineCom Services 494, ,113 The Union Water Power Company Maine Electric Power Company, Inc. 8,434 5, , ,689 5, ,438 CNE Energy Services Group 1 1 Maine Natural Gas Corporation 2,851 16,959 19,810 Grand Total 58, ,730 4,793 1,815,177 1,259,943 2,868 29,613 3,712,263 Note: All values above exclude income taxes, property taxes, non-employee benefit insurances, interest income and expense, and equity in earnings of subsidiary companies.

19 Name of Respondent This Report Is: Date of Report Year of Report (2) A Resubmission December 31, 2016 Chapter 830 Reporting Requirements Political Activities, Institutional Advertising, Promotional Advertising and Promotional Allowances Include on this page all information required by Chapter 830 of the Public Utilities Commission's Rules. Item 1 - Advertising Expenses - See page 17a Item 2 - Political Activities Expenses - See page 17b Item 3 - Promotional Allowances - No Promotional Allowances were given in MPUC Page 17

20 MPUC - Chapter Annual Report Advertising Expenses Page 1 of 1 Order # Informational Safety Advertising 47, Other Informational/Instructional Advertising 502, Tree Care Advertising 17, Total Informational Expenses 567, Institutional Image Building 144, Total Institutional 144, Promotional Value of Electricity 42, Total Promotional Expenses 42, General Brand Services 169, Web Oversight 10, Arrears Management Program Communicatio 7, Customer Rights Advertising 3, General Advertising 403, Renewable Funds 6, Total General Expenses 600, Total Expenditures $ 1,355, a

21 CENTRAL MAINE POWER COMPANY MPUC Chapter Annual Report Political Activities Expenses Political Activities Expenses Internal CMP Group External Total Other Activities - Note A & B (010) $ 62, $ - $ 175, $ 238, Major Activities (011) CMPCo Employee PAC - Note B & C (012) $ - $ - - TOTALS $ 62, $ - $ 175, $ 238, Note A: Other Political Activities - FERC Account Legal, Consulting, Lobbying, and Other Outside Services & Expenses: Amount Mahoney Jackson $ 55, Mitchell Tardy 99, The Allen Group 9, Courtney Policy Group 6, Corporate Salaries and Related Internal Expenses: Executive - Manager 22, Analyst 10, Miscellaneous Expenses 3, Benefits 13, Other Labor Related 12, Association and Membership Dues: Edison Electric Institute Membership Lobbyist Registration - Donations and Sponsorships: CMP Employee PAC 5, TOTAL OF POLITICAL ACTIVITIES EXPENSES: $ 238, Political Activities Quarterly Hours Report: Quantity Title Q1 Q2 Q3 Q4 Total Hours 1 Manager Note B: Current projections are that the aggregate spending on any one individual political activity (as defined in Chapter 83) included in Other Activities will not exceed: (1) $50, (2) 10% of the total of all political activities' expenditures over the most recent twelve-month period or (3) 10% of the political expenditures for the calendar year 17b

22 Name of Respondent This Report Is: Date of Report (2) A Resubmission Year of Report December 31, 2015 Revenues by Standard Offer Class Delivery MWhs Transmission Distribution Stranded Cost Conservation For Delivery Services Small Standard Offer Class Medium Standard Offer Class Large Standard Offer Class Total 0 $0 $0 $0 $0 Total Delivery $0 Supply Supply Services MWhs Revenues Billed by Utility (a) Small Standard Offer Class Medium Standard Offer Class Large Standard Offer Class Total Supply Billed by Utility 0 $0 Sold by Utility (b) Small Standard Offer Class Medium Standard Offer Class Large Standard Offer Class Total Supply Sold by Utility 0 $0 (a) - "Billed by Utility" should be all usage and revenues associated with supply services that the utility billed on behalf of itself or others for both standard offer and CEP supply. (b) - "Sold by Utility" should only include usage and revenues associated with supply services sold directly by the utility itself. Comments: Optional MPUC Page 18 T&D IOU

23 Name of Respondent This Report Is: Date of Report Year of Report (Mo, Da, Yr) December 31, A M.R.S.A. 504(2) Reporting Return on Common Equity on Investments Subject to Commission Jurisdiction Each large, investor-owned transmission and distrubtion utility, as defined in section 3201, subsection 12, shall provide the Maine Commission Jurisdiction For Years Ended December 31, Line No Total Net Income $ 127,056,770 $ 111,625,307 $ 113,880,738 $ 135,446,020 less Preferred Dividends $ (34,278) $ (34,278) $ (34,280) $ (34,278) Total Net Income available for Common $ 127,022,492 $ 111,591,029 $ 113,846,458 $ 135,411,742 Adjustments to reflect income from activites not 2 subject to Commission jurisdiction (specify): 3 Income from Transmission Sales $ (90,990,528) $ (74,682,921) $ (88,583,208) $ (91,652,970) 4 Other Nonutiilty Income 5 Interest Synchronization to Regulatory Capital Structure $ (1,258,473) $ (847,379) $ 267,601 $ (213,754) 6 Income Associated with Stranded/ELP/DSM $ 1,494,474 $ (753,657) $ 3,400,380 $ (1,063,712) 7 AMI Capability (Docket No ) $ 266,380 $ 266,380 8Basis Repairs/Unity of Property (Docket No ) $ 1,479,888 $ 1,479, Total Net Income from Commission Jurisdiction $ 36,267,965 $ 35,307,072 $ 30,677,499 $ 44,227, Total Common Equity 1,295,248,572 1,518,223,521 1,580,940,658 1,621,343,968 Adjustments to reflect Common Equity on investments not subject to Commission 14 Jurisdiction (Show how calculated) 15 Common Equity for Transmission Investment 738,742, ,601, ,619, ,457, Common Equity for Non-Utility Invesment 17 Other Common Equity (81,190,285) (7,660,300) 90,837, ,301, Goodwill 302,129, ,129, ,129, ,129, Total Common Equity for Investments Subject to Commission Jurisdiction 335,566, ,152, ,354, ,455, Return on Common Equity Subject to Commission 24 Jurisdiction (Line 11/Line 22) 10.81% 9.56% 8.04% 11.36% Rate Base Distribution 713,971, ,305, ,709, ,910, Rate Base Stranded Costs Notes: 1) Line 22: Derivation of Common Equity for Investments Subject to Commission Jurisdiction: Distribution Rate Base 713,971, ,305, ,709, ,910,448 Common Equity Ratio for Distribution Regulatory 47.0% 50.0% 50.0% 50.0% Distribution Rate Base Attributed to Common Equity 335,566, ,152, ,354, ,455,224 2) Line 24: ROE Calculations for 2013 were originally filed with the MPUC as part of CMP's annual ARP 2008 Compliance filings (Docket No ) 2014's ROE calculation determined using common equity stipulated to in Docket calculations have been updated to reflect the adjustments reflected in the re-stated 2013 FERC Form 1. MPUC Page 19

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25 Name of Respondent This Report Is: Date of Report Year of Report (Mo, Da, Yr) December 31, 2016 Return on Common Equity on Investments Subject to FERC Jurisdiction Each large, investor-owned transmission and distrubtion utility, as defined in section 3201, subsection 12, shall provide FERC Jurisdiction For Years Ended December 31, Line No Total Net Income $ 127,056,770 $ 111,625,307 $ 113,880,738 $ 135,446,020 less Preferred Dividends $ (34,278) $ (34,278) $ (34,280) $ (34,278) 1a Total Net income available for Common $ 127,022,492 $ 111,591,029 $ 113,846,458 $ 135,411,742 Adjustments to reflect income from activites not 2 subject to FERC jurisdiction (specify): 3 Income from Distribution Sales $ (37,526,438) $ (36,154,451) $ (28,663,630) $ (42,695,060) 4 Income from Stranded Costs $ 1,494,474 $ (753,657) $ 3,400,380 $ (1,063,712) 5 Other Nonutiilty Income 6 Normalize regulatory effect of annual true up (in rates) 7 RNS Reserve Adjustment $ 16,776, Adj Income Taxes to Statutory Rate $ (7,512,585) $ (913,521) Total Net Income from FERC Jurisdiction $ 83,477,943 $ 90,546,376 $ 88,583,208 $ 91,652, Total Common Equity 1,295,248,572 1,518,223,521 1,580,940,658 1,621,343,968 Adjustments to reflect Common Equity on investments not subject to FERC Jurisdiction 14 (Show how calculated) 15 Common Equity for Distribution Investment 335,566, ,152, ,354, ,455, Common Equity for Stranded Cost Investment 17 Common Equity for Non-Utility Invesment 18 Other Common Equity (81,190,285) (7,660,300) 90,837, ,301, Goodwill 302,129, ,129, ,129, ,129, Total Common Equity for Investments Subject to FERC Jurisdiction 738,742, ,601, ,619, ,457, Return on Common Equity Subject to FERC 24 Jurisdiction (Line 11/Line 22) 11.30% 10.60% 10.98% 11.34% Rate Base Transmission (Note 1) 1,264,980,035 1,510,048,436 1,425,236,144 1,446,894,288 Notes: 1) Line 26 is comprised of historic test year investment, forecasted incremental plant additions, incentives and MPRP Construction Work in Progress (CWIP) weighted for the average calendar year. MPUC Page 20

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