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UNITED STATES 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: November 19, 1998
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(Date of earliest event reported)
BOSTON EDISON COMPANY
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(Exact name of registrant as specified in its charter)
Massachusetts 1-2301 04-1278810
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation File Number) Identification No.)
800 Boylston Street, Boston, Massachusetts 02199
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(Address of principal executive offices) (Zip Code)
617-424-2000
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(Registrant's telephone number, including area code)
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Item 5. Other Events
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On November 19, 1998, Boston Edison Company issued the following press
release:
News Release
For more information:
David Tarantino Carol Wightman Mike Monahan
(508) 830-8895 (508) 830-8280 (617) 424-2460
Evenings/weekends: Evenings/weekends: Evenings/weekends:
(508) 830-8005 (508) 830-8005 (617) 541-7888
BEC Energy completes nation's first competitive bid process for a nuclear
plant
(Editor: Press conference details on page 2.)
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(Boston, MA, November 19, 1998) Boston Edison Company, a subsidiary of BEC
Energy (BSE-NYSE), today announced that Entergy Nuclear Generating Company, a
subsidiary of New Orleans based Entergy Corporation, has been selected as the
winning bidder for the purchase of the Pilgrim Nuclear Power Station in
Plymouth, Massachusetts.
In the nation's first competitive bid process for a nuclear power plant,
Entergy, the nation's fourth largest generator of electricity, will purchase
Pilgrim Station in a deal valued at an estimated $121 million. In addition,
Boston Edison will transfer the decommissioning trust fund of approximately
$466 million to Entergy reducing decommissioning payments by customers by an
estimated $154 million. Entergy will assume full liability and responsibility
for decommissioning the Pilgrim site. The sale coupled with the reduction in
decommissioning costs creates economic benefits for customers of about $275
million.
The Pilgrim sale includes the 670-megawatt generating plant, the 1600-acre
site, and the Chiltonville Training Center in Plymouth. A purchase and sale
agreement has been signed and all required approvals are anticipated in early
1999.
Thomas J. May, Boston Edison Chairman, President and CEO said, "This sale
advances BEC Energy's strategy of exiting the generation business in order to
become a premier wires and pipes delivery company." In May of this year,
Boston Edison became the first utility in the nation to close on the sale of
its complete portfolio of fossil-fueled generating plants.
"The amount of interest expressed during the bid process was a very favorable
commentary on both the plant and the people who operate it," May said.
"Pilgrim is a 'world class plant' because of the talent and commitment of an
outstanding employee team. This sale offers the Pilgrim team the opportunity
to continue to build on Pilgrim's record as an industry leader."
- more -
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- 2 -
May described Entergy as a leading global energy company with a well-
established reputation for working with its host communities. He said, "They
are known for creating programs that have a positive impact on the community,
education, youth, economic development and the environment."
Donald C. Hintz, Entergy Nuclear CEO, who was recently promoted to president
of Entergy Corporation said, "We welcome the opportunity to become an involved
neighbor in the Town of Plymouth, the surrounding communities, and the
Commonwealth of Massachusetts. We will continue to operate Pilgrim with the
same focus on safe, efficient nuclear operations."
Hintz noted the Commonwealth's leadership role in deregulating the electric
utility industry. He said, "The restructuring of the electric utility
industry in Massachusetts coupled with Boston Edison's practical, professional
approach to this process is a model for the industry."
Joe Colvin, president of the Nuclear Energy Institute, said, "This transaction
clearly demonstrates that U. S. and international electric generating
companies are investing in the future of nuclear power. These investments
reflect the outstanding performance of our nuclear power plants and the
importance of nuclear energy as an economic, emission-free source of
electricity in a competitive market."
The entrance of a global energy leader into the Massachusetts economy, will
accelerate the growth of a competitive market. Entergy is a $27 billion
organization that currently operates five nuclear power plants with a combined
capability of more than 4900 megawatts.
Competitive nuclear power is a key growth strategy for Entergy. Its plants
are consistently among the top performers in the industry. Entergy officials
say the operation of Pilgrim will help to ensure a diverse energy mix,
reliability and competitive pricing which are essential to attracting and
retaining business and jobs in Massachusetts.
Reed Consulting Group, Inc., of Burlington, MA, a unit of Metzler Group,
advised Boston Edison on the transaction.
# 30
Editors: Press conference:
Thursday, November 19, 1998, 11:00 AM
Prudential Center Skywalk, 50th floor
800 Boylston Street, Boston, Massachusetts
- End of Press Release -
Safe Harbor Cautionary Statement
Management occasionally makes forward-looking statements as defined under
securities laws. These forward-looking statements may be contained in filings
with the Securities and Exchange Commission, press releases and oral
statements. Actual results could potentially differ materially from these
statements. Therefore, no assurances can be given that the outcomes stated in
such forward-looking statements will be achieved. This filing on Form 8-K
includes forward-looking statements about the estimated value of the
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transaction and the corresponding economic benefits to customers. These
estimated amounts may differ from management's expectations based on final
closing adjustments. The timing of the final closing of the sale may also
differ from management's expectations if required approvals are delayed or not
obtained, which could impact the proceeds of the sale.
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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.
BOSTON EDISON COMPANY
By: /s/ Robert J. Weafer, Jr.
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Robert J. Weafer, Jr.
Vice President-Finance,
Controller and Chief
Accounting Officer
Date: November 20, 1998
