UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
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OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 1-14161
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KEYSPAN GAS EAST CORPORATION
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(Exact name of Registrant as specified in its charter)
New York 11-3434848
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
175 East Old Country Road, Hicksville, New York 11801
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(Address of principal executive offices) (Zip Code)
(631) 755-6650
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(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has 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 (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class of Common Stock Outstanding
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$.01 par value All Common stock, 100 shares, are held by
KeySpan Corporation
The registrant meets the conditions set forth in Generation Instruction
(H)(1)(a) and (b) of Form 10-Q and is therefore filing this form with the
reduced disclosure format.
<PAGE>
KEYSPAN GAS EAST CORPORATION
INDEX
Part I. FINANCIAL INFORMATION Page No.
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Item 1. Financial Statements
Statement of Income -
Three and Nine Months Ended September 30, 2000 and 1999 3
Balance Sheet -
September 30, 2000 and December 31, 1999 4
Statement of Cash Flows -
Nine Months Ended September 30, 2000 and 1999 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis Of Financial
Condition and Results of Operations 10
Part II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 14
Signatures 15
2
<PAGE>
<TABLE>
STATEMENT OF INCOME
(Unaudited)
(IN THOUSANDS OF DOLLARS)
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
REVENUES $ 95,229 $ 72,956 $ 512,470 $ 441,228
-------------- --------------------- --------------------- ---------------------
OPERATING EXPENSES
Purchased gas 43,517 28,102 242,464 195,690
Operations and maintenance 28,785 33,340 102,219 86,457
Depreciation, depletion and
amortization 10,374 7,155 30,550 21,394
Operating taxes 19,400 16,953 66,557 61,446
-------------- --------------------- --------------------- ---------------------
Total Operating Expenses 102,076 85,550 441,790 364,987
-------------- --------------------- --------------------- ---------------------
OPERATING INCOME (6,847) (12,594) 70,680 76,241
OTHER INCOME 12 449 2,245 945
-------------- --------------------- --------------------- ---------------------
INCOME BEFORE INTEREST
CHARGES AND INCOME TAXES (6,835) (12,145) 72,925 77,186
INTEREST CHARGES 13,501 11,603 38,228 38,264
INCOME TAXES (7,341) (8,585) 11,437 13,344
-------------- --------------------- --------------------- ---------------------
NET INCOME (LOSS) $ (12,995) $ (15,163) $ 23,260 $ 25,578
============== ===================== ===================== =====================
</TABLE>
See accompanying Notes to the Financial Statements.
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<TABLE>
BALANCE SHEET
(IN THOUSANDS OF DOLLARS)
<CAPTION>
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SEPTEMBER 30, 2000 December 31, 1999
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(Unaudited) (Audited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Customer accounts receivable $ 79,271 $ 122,889
Accounts receivable, intercompany 45,924 43,405
Other accounts receivable 62,088 117,738
Allowance for uncollectible accounts (7,814) (5,310)
Gas in storage, at average cost 107,125 72,741
Materials and supplies, at average cost 7,031 5,507
Other 516 1,445
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294,141 358,415
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PROPERTY
Gas 1,468,351 1,393,533
Accumulated depreciation (266,602) (245,956)
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1,201,749 1,147,577
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DEFERRED CHARGES
Regulatory assets 190,913 179,742
Deferred income tax 27,694 52,065
Other 1,684 373
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220,291 232,180
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TOTAL ASSETS $ 1,716,181 $ 1,738,172
================== ==================
</TABLE>
See accompanying Notes to the Financial Statements.
4
<PAGE>
<TABLE>
BALANCE SHEET
(IN THOUSANDS OF DOLLARS)
<CAPTION>
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SEPTEMBER 30, 2000 December 31, 1999
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(Unaudited) (Audited)
<S> <C> <C>
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES
Current maturities of long-term debt $ - $ 397,000
Accounts payable and accrued expenses 123,416 142,481
Taxes accrued (1,019) 5,005
Customer deposits 3,986 3,845
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126,383 548,331
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INTERCOMPANY ACCOUNTS PAYABLE, LONG-TERM 227,794 258,079
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DEFERRED CREDITS AND OTHER LIABILITIES
Regulatory liabilities 27,269 20,888
Operating reserves and other 82,498 81,896
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109,767 102,784
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CAPITALIZATION
Premium on capital stock 657,862 657,862
Retained earnings 18,471 (4,788)
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Total common shareholders' equity 676,333 653,074
Long-term debt 575,904 175,904
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TOTAL CAPITALIZATION 1,252,237 828,978
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TOTAL LIABILITIES AND CAPITALIZATION $ 1,716,181 $ 1,738,172
======================== ========================
</TABLE>
See accompanying Notes to the Financial Statements.
5
<PAGE>
<TABLE>
STATEMENT OF CASH FLOWS
(Unaudited)
(IN THOUSANDS OF DOLLARS)
<CAPTION>
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NINE MONTHS ENDED Nine Months Ended
SEPTEMBER 30, 2000 September 30, 1999
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<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 23,260 $ 25,578
ADJUSTMENTS TO RECONCILE NET INCOME TO
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Depreciation and amortization 30,550 21,394
Deferred income tax 23,639 49,670
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable 99,253 54,706
Materials and supplies and
gas in storage (35,908) (12,292)
Accounts payable and accrued expenses (25,134) 9,130
Other (12,202) (22,901)
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Net Cash Provided by Operating Activities 103,458 125,285
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INVESTING ACTIVITIES
Capital expenditures (76,173) (61,344)
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Net Cash (Used in) Investing Activities (76,173) (61,344)
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FINANCING ACTIVITIES
Issuance of long-term debt 400,000 -
Repayment of long-term debt (397,000) -
Intercompany accounts payable
- long-term debt (30,285) (63,941)
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Net Cash (Used in) Financing Activities (27,285) (63,941)
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Net Increase in Cash and Cash Equivalents - -
======================================================
Cash and cash equivalents at
beginning of period $ - $ -
Net Increase in cash and cash equivalents - -
------------------------------------------------------
Cash and Cash Equivalents at $ - $ -
End of Period (See Note 5)
======================================================
</TABLE>
See accompanying Notes to the Financial Statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
KeySpan Gas East Corporation, d/b/a KeySpan Energy Delivery Long Island (the
"Company") is a wholly owned subsidiary of KeySpan Corporation d/b/a KeySpan
Energy (the "Parent"). The Company provides gas distribution services to
approximately 478,000 customers in the Long Island counties of Nassau and
Suffolk and the Rockaway Peninsula of the Borough of Queens.
1. BASIS OF PRESENTATION
In the opinion of the Company, the accompanying unaudited Financial
Statements contain all adjustments necessary to present fairly the financial
position of the Company as of September 30, 2000, and the results of its
operations for the three and nine months ended September 30, 2000 and
September 30, 1999, as well as cash flows for the nine months ended
September 30, 2000 and September 30, 1999 . The accompanying financial
statements should be read in conjunction with the financial statements and
notes included in the Company's 1999 Annual Report on Form 10-K. Income from
interim periods may not be indicative of future results. Certain
reclassifications were made to conform prior period financial statements
with the current period financial statement presentation. Other than as
noted, adjustments were of a normal, recurring nature.
2. REVENUES
The gas distribution business is influenced by seasonal weather conditions.
Annual gas revenues are substantially realized during the heating season
(November 1 to April 30) as a result of the large proportion of heating
sales, primarily residential, compared with total sales. Accordingly,
results of operations for gas distribution operations historically are most
favorable in the three months ended March 31, with results of operations
being next most favorable in the three months ended December 31.
Historically, results for the quarters ended June 30 are marginally
profitable or unprofitable, and losses are generally incurred in the
quarters ended September 30.
The Company operates under a utility tariff that contains a weather
normalization adjustment that largely offsets shortfalls or excesses of firm
net revenues (i.e., revenues less gas costs and revenue taxes) during a
heating season due to variations from normal weather.
3. ENVIRONMENTAL MATTERS
The Company has identified nineteen manufactured gas plant ("MGP") sites
which were historically owned or operated by the Company (or its
predecessors). These former sites, some of which are no longer owned by the
Company, have been identified to the New York State Department of
Environmental Conservation ("DEC") for inclusion on appropriate waste site
inventories.
The Company presently estimates the cost of its MGP-related environmental
cleanup activities will be approximately $76 million; which amount has been
accrued by the Company as its current best estimate of its aggregate
environmental liability for known sites. The currently-known conditions
7
<PAGE>
of the former MGP sites, their period and magnitude of operation, generally
observed cleanup requirements and costs in the industry, current land use
and ownership, and possible reuse have been considered in establishing
contingency reserves. The Company believes that in the aggregate, the
accrued liability for investigation and remediation of the MGP sites
identified above are reasonable estimates of likely cost within a range of
reasonable, foreseeable costs.
Eleven sites identified are currently the subject of Administrative Consent
Orders ("ACO") with the DEC and one identified site is subject to the
negotiation of an agreement under the DEC's Voluntary Clean-up Program. The
Company's remaining MGP sites may not become subject to ACOs in the future;
accordingly no liability has been accrued for these sites.
The current rate plan in effect provides for recovery of environmental
costs. At September 30, 2000, the Company has reflected a regulatory asset
of approximately $79 million. Expenditures incurred to date by the Company
with respect to MGP-related activities total $5.8 million.
4. ISSUANCE OF LONG-TERM DEBT
The Company filed a shelf registration statement with the Securities and
Exchange Commission ("SEC") in December 1999 for the issuance of up to $600
million of Medium Term Notes. On February 1, 2000, the Company issued $400
million 7.875% Notes due February 1, 2010. The net proceeds from the
issuance were used to repay the Parent for its costs in extinguishing $397
million of promissory notes due the Long Island Power Authority ("LIPA")
that matured in June 1999. The Medium Term Notes are fully and
unconditionally guaranteed by the Parent. Currently, $200 million of Medium
Term Notes remain available for issuance under the shelf registration
statement.
5. RELATED PARTY TRANSACTIONS
The Company engages in various transactions with affiliates of the Parent.
In addition, all cash collected from the Company's gas customers is
collected and held by the Parent's corporate and administrative subsidiary.
Further, all payments to third parties for Company payables, including
labor, are made by the Parent's corporate and administrative subsidiary on
behalf of the Company. The Company is also obligated to reimburse the Parent
for the Company's allocated share of principal and interest on the
promissory notes due to LIPA. Accordingly, accrued interest related to these
notes is recorded as an intercompany payable. At September 30, 2000 and
December 31, 1999, the Company had current intercompany accounts receivable
balances of $45.9 million and $43.4 million respectively, from the Parent's
corporate and administrative subsidiary. These balances approximate twelve
months of interest payments on the Company's long-term debt outstanding at
September 30, 2000 and December 31, 1999.
The balance of intercompany accounts payable amounted to $227.8 million and
$258.1 million at September 30, 2000 and December 31, 1999, respectively.
These balances reflect, primarily, the Company's allocated pension and other
postretirement liability due to the Parent, as well as natural gas purchases
and taxes payable.
8
<PAGE>
The Company incurs expenses related to services it provides to affiliates of
the Parent. These expenses are offset by intercompany billings to the
various affiliates of the Parent for which the Company provides such
services. Billings to various affiliates of the Parent amounted to $0.4
million and $1.5 million for the three and nine months ended September 30,
2000, respectively and $1.3 million and $2.8 million for the three and nine
months ended September 30, 1999, respectively. These billings reduced
operating expenses in the accompanying Statement of Income.
6. ACQUISITION OF EASTERN ENTERPRISES
On November 8, 2000, the Parent acquired Eastern Enterprises ("Eastern"), a
Massachusetts business trust and the parent of several gas utilities
operating in Massachusetts. Also on November 8, 2000, Eastern acquired
EnergyNorth, Inc., the parent of a gas utility operating in central New
Hampshire. The acquisitions are valued at approximately $2.5 billion - $1.96
billion in equity and the assumption of $550 million in debt. The Parent
will ultimately finance the acquisitions by issuing $1.65 billion in
long-term debt and the balance with commercial paper. The Agreement and Plan
of Merger is included as an exhibit to the Parent's Form 10-K filed on
December 31, 1999.
Following the closing of these transactions, the Parent became a registered
holding company under the Public Utility Holding Company Act of 1935, as
amended. As such, the corporate and financial activities of the Parent and
its subsidiaries, including such entities' ability to pay dividends, are
subject to regulation by the Securities and Exchange Commission ("SEC").
7. NEW FINANCIAL ACCOUNTING STANDARDS
In June 1999, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard ("SFAS") No. 137, "Accounting
for Derivative Instruments and Hedging Activities - Deferral of the
Effective Date of SFAS No. 133." SFAS No. 137 defers the effective date of
SFAS No. 133 to fiscal years beginning after July 15, 2000. The Company
will therefore adopt SFAS No. 133 in the first quarter of fiscal year 2001.
SFAS No. 133 establishes accounting and reporting standards for derivative
instruments and for hedging activities. It requires that an entity
recognize all derivatives as either assets or liabilities in the statement
of financial position and measure those instruments at fair value.
In June 2000, the FASB issued SFAS No. 138, "Accounting for Certain
Derivative Instruments and Certain Hedging Activities - An Amendment of FASB
Statement No 133." SFAS No. 138 amends the accounting and reporting
standards of SFAS No. 133 for a number of transactions. The most significant
amendment to SFAS 133 as it relates to the Company is that the normal
purchases and normal sales exception found in SFAS 133 may now be applied to
contracts that implicitly or explicitly permit net settlement, and contracts
that have a market mechanism to facilitate net settlement. Therefore, under
SFAS 138, the Company's gas procurement contracts are not considered
derivative instruments. As of September 30, 2000, the Company did not have
any derivative instruments.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
NET REVENUES AND GAS SALES QUANTITIES
<TABLE>
The table below highlights net revenues and sales quantity statistics for the
Company for the periods indicated.
<CAPTION>
(IN THOUSANDS OF DOLLARS)
------------------------------------------------------------------------------------------------------------------------------------
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues $ 95,229 $ 72,956 $ 512,470 $ 441,228
Purchased gas 43,517 28,102 242,464 195,690
Revenue taxes 4,036 3,335 21,109 21,674
----------------------------------------------------------------------------------------------------------------------------------
Net Revenues 47,676 41,519 248,897 223,864
----------------------------------------------------------------------------------------------------------------------------------
Firm gas sales (MDTH) 5,740 5,008 42,138 38,510
Firm transportation (MDTH) 754 720 4,023 3,723
Transportation -
Electric Generation (MDTH) 14,711 32,352 45,342 61,763
Other sales (MDTH) 2,353 5,334 16,269 18,189
Warmer than normal N/A N/A 5.9% 9.7%
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
An MDTH is 10,000 therms (British Thermal Units) and reflects the
heating content of approximately one million cubic feet of gas. A
therm reflects the heating content of approximately 100 cubic feet of
gas.
Net gas revenues increased during the third quarter of 2000, compared to the
third quarter of last year, by $6.2 million or 14.8%. For the nine months ended
September 30, 2000, net gas revenues increased by $25.0 million or 11.1%
compared to the corresponding period of last year. The increase in net gas
revenues for both periods was due to continued gas sales growth. Long Island has
a low natural gas saturation rate and significant gas-sales growth opportunities
are believed to be available. The Company estimates that less than 30% of the
residential and the multi-family markets, and 70% of the commercial market
currently use natural gas for space heating. The Company will continue to seek
growth through the expansion of its distribution system as well as through the
conversion of residential homes from oil-to-gas for space heating purposes, and
the pursuit of opportunities to grow multi- family, industrial and commercial
markets.
10
<PAGE>
The increase in gas costs for the three and nine months ended September 30, 2000
compared to the corresponding periods last year was due to the increase in gas
sales growth and generally higher gas prices. Variations in gas costs have
little impact on operating results as the Company's current gas rate structure
includes a gas adjustment clause, pursuant to which variations between actual
gas costs and gas cost recoveries are deferred and subsequently refunded to or
collected from customers.
Firm gas sales and transportation quantities increased during the three and nine
months ended September 30, 2000, respectively over the corresponding periods in
1999, due to an increase in firm sales resulting from gas-sales growth and an
increase in firm gas transportation quantities as the Company continues its
natural gas deregulation initiatives. The Company's net margins are not affected
by customers opting to purchase their gas supply from sources other than the
Company, since distribution rates charged to transportation customers are the
same as those charged to full sales service customers.
Transportation quantities related to electric generation reflects the
transportation of gas to the Parent's electric generating facilities located on
Long Island. Net revenues from these services are minimal.
Other sales quantities include on-system interruptible quantities, off-system
sales quantities (sales made to customers outside of the Company's service
territory) and related transportation. A subsidiary of the Parent, which is
responsible for gas procurement and off-system sales, has an agreement with
Coral Energy Resources, L.P., a subsidiary of Shell Oil Company ("Coral") in
which Coral assists in the origination, structuring, valuation and execution of
energy-related transactions on behalf of the Company. A sharing exists between
gas ratepayers and the Company for off-system gas transactions; the remaining
profits on such transactions are then shared with Coral. The Company also shares
in revenues arising from certain transactions initiated by Coral.
OPERATING EXPENSES
Operations and maintenance expense decreased by $4.6 million, or 13.7%, in the
third quarter of 2000 compared to the corresponding quarter last year. However,
for the nine months ended September 30, 2000 compared to the nine months ended
September 30, 1999, operations and maintenance expense has increased by $15.8
million, or 18.2% reflecting, generally, higher labor costs and associated
employee benefit expenses, additional provisions for uncollectible accounts and
higher marketing costs and incentives related to the Company's gas expansion
initiatives. The increase in depreciation and amortization expense generally
reflects the effects of continued property additions and the amortization of
certain regulatory items previously deferred and now being recovered through
revenue recovery mechanisms. Further, operating taxes which include state and
local taxes on property have increased as the applicable property base and tax
rates generally have increased.
11
<PAGE>
OTHER EXPENSES
The increase in interest expense for the quarter ended September 30, 2000
compared to the corresponding period last year is due to the issuance of $400
million of medium term notes in February 2000. Income tax expense reflects the
level of pre-tax income for the quarter and nine months ended September 30,
2000, compared to the corresponding periods last year.
LIQUIDITY, CAPITAL EXPENDITURES AND FINANCING
LIQUIDITY
The Company does not maintain a cash balance. All cash generated from billings
to customers for gas service is maintained by the Parent's corporate and
administrative subsidiary. Further, all payments to third parties for Company
payables, including labor, are made by the Parent's corporate and administrative
subsidiary on behalf of the Company. (See Note 5 to the Financial Statements,
"Related Party Transactions".) The Company records as an intercompany accounts
receivable or intercompany accounts payable to the Parent's corporate and
administrative subsidiary the difference between the cash received from
customers compared to third party payments. At September 30, 2000, the Company
had an intercompany accounts payable of $227.8 million due to the Parent's
corporate and administrative subsidiary. In addition, at September 30, 2000 the
Company had a current intercompany accounts receivable balance of $45.9 million
from the Parent's corporate and administrative subsidiary, approximating twelve
months of interest payments on the Company's long- term debt outstanding at
September 30, 2000.
The Company estimates that cash provided from operating activities will be
sufficient for the Company to satisfy its obligations for the foreseeable
future. To the extent the Company requires additional funding, on a short-term
basis, the Company has the ability to borrow such funds from the Parent or a
Parent subsidiary.
CAPITAL EXPENDITURES
Capital expenditures were $76.2 million for the nine months ended September 30,
2000, and $61.3 million for the nine months ended September 30, 1999. Capital
expenditures were primarily for the renewal and replacement of mains and
services and for the expansion of the gas distribution system on Long Island.
The amount of capital expenditures is reviewed on an ongoing basis and can be
affected by timing, scope and changes in investment opportunities.
12
<PAGE>
FINANCING
The Company has an effective shelf registration statement on file with the
Securities and Exchange Commission for the issuance of up to $600 million of
Medium Term Notes. On February 1, 2000, the Company issued $400 million 7.875%
Notes due February 1, 2010. The net proceeds from this issuance were used to
repay the Parent for its costs in extinguishing $397 million of promissory notes
due LIPA that matured in June 1999. The notes issued are fully and
unconditionally guaranteed by the Parent. Currently, $200 million of Medium Term
Notes remain available for issuance under the shelf registration statement.
GAS DISTRIBUTION - RATE MATTERS
By orders dated February 5, 1998 and April 14, 1998 the Public Service
Commission of the State of New York ("NYPSC") approved a Stipulation and
Agreement ("Stipulation") among KeySpan Energy Delivery New York, Long Island
Lighting Company, the Staff of the NYPSC and six other parties that established
gas rates for the Company. On November 30, 2000, the Company's rate agreement
with the NYPSC expires. Under the terms of the agreement, current gas
distribution rates will remain in effect for 2001 unless either the Company or
the NYPSC initiate a rate proceeding. The Company does not intend to initiate
such a proceeding and at this time the Company has no reason to believe that the
NYPSC will initiate a proceeding. Therefore, the Company expects current gas
distribution rates to remain in effect through 2001. (For more information on
these agreements refer to the Company's Annual Report on Form 10-K for the year
ended December 31, 1999.)
ENVIRONMENTAL MATTERS
The Company is subject to various federal, state and local laws and regulatory
programs related to the environment. Ongoing environmental compliance
activities, which have not been material, are charged to operation and
maintenance activities. The Company estimates that the remaining minimum cost of
its MGP-related environmental cleanup activities will be approximately $76
million and has recorded a related liability for such amount. Further, as of
September 30, 2000, the Company has expended a total of $5.8 million. (See Note
3 to the Financial Statements "Environmental Matters".)
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this Form 10-Q concerning expectations, beliefs,
plans, objectives, goals, strategies, future events or performance and
underlying assumptions and other statements which are other than statements of
historical facts, are "forward-looking statements" within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended. Without limiting the
foregoing, all statements relating to the Company's future outlook, anticipated
capital expenditures, future cash flows and borrowings, pursuit of potential
future acquisition opportunities and sources of funding are forward-looking
statements. Such forward-looking statements reflect numerous assumptions and
involve a number of risks and uncertainties and actual results may differ
materially from those discussed in such statements. Among the factors that could
cause actual results to differ materially
13
<PAGE>
are: general economic trends; available sources and cost of gas; federal and
state regulatory initiatives that increase competition, threaten cost and
investment recovery, and impact rate structures; the ability of the Company to
successfully reduce its cost structure; inflationary trends and interest rates;
and other risks detailed from time to time in other reports and other documents
filed by the Company with the Securities and Exchange Commission. For any of
these statements, the Company claims the protection of the safe harbor for
forward-looking information contained in the Private Securities Litigation
Reform Act of 1995, as amended.
PART II OTHER INFORMATION
-------------------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(27)* Financial Data Schedule on Schedule U-T for the quarter ended September
30, 2000.
-------------------------
*Filed Herewith
14
<PAGE>
KEYSPAN GAS EAST CORPORATION
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on behalf of the undersigned
there unto duly authorized.
KEYSPAN GAS EAST CORPORATION
(Registrant)
Date: November 14, 2000 /s/ Anne C. Jordan
----------------------------------
Anne C. Jordan
Vice President and Chief Financial
Officer
Date: November 14, 2000 /s/ Paul R. Nick
----------------------------------
Paul R. Nick
Controller and Chief Accounting
Officer
15
