SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event reported) - December 17,
1997
TEXAS UTILITIES COMPANY
Formerly known as TUC Holding Company
(Exact name of registrant as specified in its charter)
TEXAS 1-12833 75-2669310
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
2001 Bryan Tower, Dallas, Texas 75201
(Address of principal executive offices)
Registrant's telephone number, including area code -
(214) 812-4600
ITEM 5. OTHER EVENTS
On December 17, 1997, TU Electric, a wholly owned
subsidiary of the Registrant announced a proposed settlement with
respect to the retail rates that it would charge and the
mitigation of potentially stranded costs that it would achieve
during 1998 and 1999. The proposal is not unanimous, but is a
joint agreement among TU Electric, the staff of the Public
Utility Commission of Texas (PUC), the Office of Public Utility
Counsel, and certain consumer groups and industrial customers
served by TU Electric. The proposal is subject to PUC approval,
which is anticipated on an interim basis before the end of the
year. Pursuant to the agreement, TU Electric will implement base
rate reductions effective January 1, 1998, equal to 4% for
residential customers, 2% for general service customers taking
electric service at secondary voltages (typically small and
medium size businesses), and 1% for all other retail customers.
Effective January 1, 1999, an additional reduction of 1.4% would
apply to the base rate charges to residential customers. These
rate credits are expected to produce revenue reductions of $118
million in 1998 and $145 million in 1999. In addition, the
settlement caps the return on invested capital that TU Electric
will earn in 1998 and 1999. Any return in excess of the cap will
be applied as additional production depreciation to mitigate
potentially stranded costs. The settlement also provides for
mitigation of potentially stranded costs through the redirection
of transmission and distribution depreciation during the two-year
period, amounting to approximately $335 million, as additional
production depreciation.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
TEXAS UTILITIES COMPANY
By: /s/ Robert S. Shapard
-----------------------------
Robert S. Shapard
Treasurer and Assistant Secretary
Date: December 17, 1997
