SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
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) March 14, 2000
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Commission File Number 0-7624
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WESTERN MASSACHUSETTS ELECTRIC COMPANY
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(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-1961130
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
174 BRUSH HILL AVENUE, WEST SPRINGFIELD, MASSACHUSETTS 01090-0010
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(Address of principal executive offices) (Zip Code)
(413) 785-5871
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events.
A. On March 14, 2000, The Connecticut Light and Power Company (CL&P) and
Western Massachusetts Electric Company (WMECO), two public utility
subsidiaries of Northeast Utilities (NU), completed the sale of approximately
1,289 megawatts (MW) of hydroelectric and pumped storage generating assets in
Connecticut and Massachusetts to Northeast Generation Company (NGC), a
wholly-owned subsidiary of NU Enterprises, Inc. (NUEI), the holding company
for unregulated companies in the NU system. The purchase price paid for
these assets was $865.5 million with CL&P receiving approximately $680
million, and WMECO approximately $185 million. The assets sold were 10
hydroelectric facilities in Connecticut, including the seven facilities of
CL&P's Housatonic River System (123 MW), three facilities that make up CL&P's
Eastern Connecticut System, and one gas turbine (27 MW), and the Northfield
Mountain pumped storage station (owned 81% by CL&P and 19% by WMECO) and the
Cabot and Turners Falls No. 1 hydroelectric stations located in Massachusetts
and owned by WMECO. The Massachusetts facilities have a combined capability
of 1,139 MW. Another unregulated subsidiary of NUEI, Northeast Generation
Services Company has contracted with NGC to manage and operate the plants.
NGC has also contracted to market the capacity and output of the plants
through NUEI's competitive marketing subsidiary, Select Energy, Inc.
CL&P sold its generation assets in accordance with its restructuring plan
which was approved by the Connecticut Department of Public Utility Control in
1999. CL&P had previously sold approximately 2,235 MW of fossil-fueled
generation in Connecticut to NRG Energy, Inc., a subsidiary of Northern
States Power Company, of Minneapolis, Minnesota.
WMECO's sale is in conformity with its restructuring plan which was approved
by the Department of Telecommunications and Energy in 1999. WMECO had
previously sold approximately 290 MW of fossil and hydro generation in
Massachusetts to a subsidiary of Consolidated Edison Company of New York.
Item 7. Financial Statements and Exhibits
(c) Exhibits
99 Press Release issued by Northeast Utilities System dated March 14, 2000.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WESTERN MASSACHUSETTS ELECTRIC COMPANY
(registrant)
By: /s/ Randy A. Shoop
Randy A. Shoop
Assistant Treasurer- Finance
Date: March 28, 2000
NU LOGO
CL&P AND WMECO HYDROELECTRIC PLANTS ACQUIRED
BY NORTHEAST GENERATION COMPANY
NU's Competitive Generation Subsidiary Completes $865.5 Million Purchase
Berlin, Connecticut, March 14, 2000 - Northeast Generation Company (NGC), a
wholly-owned unregulated subsidiary of Northeast Utilities (NU), today
announced it has completed its purchase of 1,289 megawatts of generating
capacity from two of NU's regulated operating companies, The Connecticut
Light and Power Company (CL&P) and Western Massachusetts Electric Company
(WMECO). The $865.5 million deal was the result of the competitively-bid
public auction process held last year as part of electric utility
restructuring in the two states.
Included in NGC's purchase of 13 hydroelectric and pumped storage generating
stations is one of New England's largest electric generating plants, the
1,080-megawatt Northfield Mountain pumped storage hydroelectric station in
Northfield, Massachusetts. NGC has also acquired the 30-megawatt Rocky River
pumped storage plant on the Housatonic River in New Milford, Connecticut. The
Rocky River facility's upper reservoir is Candlewood Lake.
NGC president Bruce D. Kenyon said, "We are very pleased to have completed
this purchase. It will be a key part in achieving NU's vision to become a
leading provider of energy in the deregulating electricity marketplace in the
northeast United States."
Northfield Mountain Station pumps water from the Connecticut River during
off-peak periods to an upper reservoir and then uses that water to generate
electricity during peak periods of demand. "This extremely flexible plant,
which can start and reach full power in less than 10 minutes, is important on
days when the New England power grid is stretched to provide adequate power
for its residents and businesses," said Kenyon. "With respect to
hydroelectric facilities, we are seeing the environmental value of this type
of generation increase as retail electricity marketers are required by law to
include a growing percentage of renewable resources in their generation mix,"
he added.
The plants' generation capacity and output will be marketed by Select Energy
Inc., NU's competitive power marketing and energy services subsidiary. The
plants will be operated and managed by another NU subsidiary, Northeast
Generation Services Company (NGS).
According to Kenyon, the price of $671 a kilowatt for generating capacity
represents a sound investment when compared to the prices paid for other
hydroelectric plants in the Northeast. NGC's purchase is being financed with
a $430 million loan from a group of banks, and the balance funded by an
equity contribution by parent Northeast Utilities. NU's competitive energy
businesses represent a significant area of growth for the parent company,
with Select Energy's 1999 revenues totaling approximately $555 million. NU's
total revenues in 1999 were $4.47 billion.
Northeast Generation Company is part of Northeast Utilities' competitive
energy business group which also includes Select Energy Inc., HEC Inc. and
NGS. Marketing under the Select Energy brand, these three companies provide
integrated energy solutions including retail and wholesale energy supply,
energy efficiency and engineering services and facilities management and
operation. For more information, visit www.selectenergy.com on the Internet.
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Executive interview available:
Bruce D. Kenyon is president of Northeast Generation Company and president of
Northeast Utilities' Generation Group.
