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: June 26, 1998
EASTERN EDISON COMPANY
(Exact name of registrant as specified in this charter)
Massachusetts 1-8480 04-1123095
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
750 W. Center Street, West Bridgewater, Massachusetts 02109
(Address of principal executive offices) (Zip Code)
Item 5. Other Events.
In a press release dated June 25, 1998, Eastern Utilities Associates (EUA)
announced that it's Montaup Electric Company subsidiary has agreed to sell its
2.9 percent (33.7 megawatt) share of the Seabrook Station nuclear power plant
in Seabrook, New Hampshire to the Great Bay Power Corp. subsidiary of BayCorp
Holdings, Ltd. Montaup is a direct subsidiary of Eastern Edison. Eastern
Edison is a direct subsidiary of EUA. This sale is subject to federal and
state regulatory approvals, including that of the Nuclear Regulatory
Commission.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
Exhibit 99a Press Release dated June 25, 1998.
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
President
Date: June 26, 1998
Exhibit 99a
June 25, 1998
Upon Receipt
Michael J. Hirsh
(508) 559-2000 ext. 3101
or
Clifford J. Hebert, Jr.
(617) 357-9590
Eastern Utilities Announces Sale
Of Its Seabrook Nuclear Plant Share
BOSTON, June 25 Eastern Utilities Associates (NYSE: EUA) today announced
that its Montaup Electric Co. generation subsidiary has agreed to sell its
2.9 percent (33.7-megawatt) share of the Seabrook Station nuclear power
plant in Seabrook, N. H., to the Great Bay Power Corp. subsidiary of BayCorp
Holdings, Ltd. (Amex: MWH).
BayCorp Holdings, which already owns 12.1 percent of the Seabrook plant,
will pay EUA $3.2 million and assume responsibility for EUA's share of the
plant's future operating and post-closing costs. Under the agreement,
Montaup will pre-fund the decommissioning liability associated with its
share of the plant. Great Bay has agreed to supply a share of EUA's
standard offer obligations to provide electricity to its customers in
Massachusetts and Rhode Island who do not choose an alternative supplier.
In announcing the sale agreement, Donald G. Pardus, Chairman and Chief
Executive Officer of EUA, said: "This sale of nuclear generation ownership
is a milestone in achieving our goal of full divestiture of Montaup's
generation assets."
EUA is divesting all its generation assets as part of negotiated settlement
agreements to restructure the electric utility industry in Massachusetts and
Rhode Island.
Frank W. Getman, Jr., BayCorp's President and Chief Executive Officer, said
his company was pleased to be able to acquire Montaup's Seabrook capacity,
adding he believes Seabrook "will be a low cost supplier of electricity in
the emerging competitive generation market in New England. We believe
nuclear power will remain an important part of the energy mix in New England
and throughout the country."
EUA has previously announced agreements to sell its share of the Canal
Generating Station in Sandwich, Mass., diesel-powered generating units in
Rhode Island and its power purchase contract with the Ocean State Power
station in northern Rhode Island. Its remaining assets are being sold in a
continuing auction process.
The Seabrook sale is subject to federal and state regulatory approvals,
including that of the Nuclear Regulatory Commission.
BayCorp Holdings' Great Bay Power subsidiary is an exempt wholesale
generator of power in New England, whose principal asset is its share of the
Seabrook Power Plant. This ownership interest entitles the company to
approximately 140 megawatts of Seabrook's output.
EUA is a Boston-based diversified energy services company whose shares are
traded on the New York and Pacific Stock Exchanges. Subsidiaries include
Blackstone Valley Electric Co.; Eastern Edison Co.; Newport Electric Corp.;
EUA Cogenex Corp.; EUA Energy Investment Corp.; EUA Ocean State Corp.; EUA
Service Corp.; EUA Energy Services, Inc.; and Montaup Electric Co. Together,
the companies are known as the EUA System. Information about EUA is
available on the World Wide Web at http://www.eua.com
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