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: April 11, 1996
EASTERN EDISON COMPANY
(Exact name of registrant as specified in this charter)
Massachusetts 0-8480 04-1123095
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
110 Mulberry Street, Brockton, Massachusetts 02403
(Address of principal executive offices) (Zip Code)
Item 5. Other Events.
Montaup Electric Company ("Montaup"), a direct subsidiary of Eastern
Edison Company and an indirect wholly owned subsidiary of Eastern Utilities
Associates ("EUA"), has a 4.01% ownership interest in Millstone 3, an 1154-MW
nuclear unit that is jointly owned by a number of New England utilities,
including subsidiaries of Northeast Utilities ("Northeast"). Northeast is the
lead participant in Millstone 3, and on March 30, 1996, Northeast determined
to shut down the unit following an engineering evaluation which determined
that four safety-related valves would not be able to perform their design
function during certain postulated events.
On April 5, 1996, Northeast filed a Form 8-K (the "April 5 8-K") with the
Securities and Exchange Commission describing the shutdown and various issues
which the Nuclear Regulatory Commission ("NRC") has raised with respect to
Millstone 3 and certain of the other nuclear units in which Northeast and its
subsidiaries, either individually or collectively, have the largest ownership
shares, including a 582-MW unit owned by Connecticut Yankee Atomic Power
Company, in which Montaup has 4.5% ownership share.
In the April 5 8-K, Northeast reports that the NRC will require, among
other things, certain technical issues to be resolved before Millstone 3 can
be restarted, and that Northeast's management cannot predict when Millstone 3
will return to service or the amount of the incremental direct costs which
will be incurred to address the issues raised by the NRC.
While Millstone 3 is out of service, Montaup will incur incremental
replacement power costs estimated at $550,000 to $800,000 per month. Montaup
would bill its replacement power costs through its fuel adjustment clause, a
wholesale tariff jurisdictional to the Federal Energy Regulatory Commission
("FERC"). However, there is no comparable clause in Montaup's FERC-approved
rates which at this time would permit Montaup to recover Montaup's share of
the incremental direct costs incurred by Northeast. Northeast has not yet
estimated such costs but it is likely Montaup would be billed for its 4.01%
share of such costs.
Northeast's April 5 8-K reports that the NRC has requested certain
information concerning the 582-MW nuclear unit owned by Connecticut Yankee
Atomic Power Company, but that the NRC letter requesting the information does
not currently require that the requested information be provided prior to
restarting the unit, were it to shut down.
EUA cannot predict the ultimate outcome of the NRC inquiries or the
impact which they may have on Montaup and the EUA system. EUA is also
evaluating its rights and obligations under the various agreements relating to
the ownership and operation of Millstone 3 and Connecticut Yankee Atomic Power
Company.
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.
EASTERN EDISON COMPANY
(Registrant)
By: /s/ John R. Stevens
John R. Stevens
Vice Chairman
Date: April 11, 1996
