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: October 15, 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 October 15, 1998, Eastern Utilities Associates (EUA)
announced that its Montaup Electric Company subsidiary has agreed to sell its
Somerset Station electric generating plant for $55 million to NRG Energy, Inc.
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.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
Exhibit 99a Press Release dated October 15, 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: October 15, 1998
Exhibit 99a
News Release
DATE: October 15, 1998
RELEASE: Upon Receipt
CONTACT: Financial: Clifford J. Hebert Jr.
(617) 357-9590
General: Frederick L. Mason III
(508) 559-2000 ext. 3662
Eastern Utilities Sells Somerset Station
to Minnesota-based NRG Energy
SOMERSET, Mass., Oct. 15 Eastern Utilities Associates (NYSE:EUA) announced
today that its Montaup Electric Co. subsidiary has signed an agreement to sell
its Somerset (Mass.) Station electric generating plant for $55 million to NRG
Energy, Inc., a wholly-owned subsidiary of Northern States Power Co. (NYSE:
NSP), based in Minneapolis, Minn. Sale of the 160-megawatt (MW) power plant is
expected to be completed in the first quarter of 1999 following regulatory
approvals.
"We are very pleased to have a company with NRG's international reputation and
track record in the power industry make a commitment to power generation in
this region," said Donald G. Pardus, EUA's Chairman and Chief Executive
Officer. "This sale represents completion of divestiture of all of Montaup's
wholly-owned power generation assets."
Montaup is selling its generating assets under terms of its settlement
agreements with Massachusetts and Rhode Island as part of the ongoing
deregulation of New England's electric industry. The purchase price for
Somerset Station is about 1.8 times the station's book value.
Pardus noted that EUA plans to file for approval of this sale with the
Massachusetts Department of Telecommunication and Energy and the Federal Energy
Regulatory Commission (FERC) later this month. The sale will help lower EUA's
stranded costs in accordance with the company's settlement agreements with
FERC.
The sale also includes an additional 69 MW of currently deactivated generating
capacity, real estate as well as generating equipment at the 1.2 megawatt
Pawtucket Hydro Station in Pawtucket, R.I., owned by another EUA
subsidiary Blackstone Valley Electric Co. Details of the Pawtucket Hydro
sale are expected to be completed in a week or two.
NRG Energy is one of the world's leading independent power producers,
specializing in the development, construction, operation, maintenance and
ownership of reliable, cost-efficient and environmentally sensitive power
plants. Established in 1989, NRG is involved in more than 10,500 megawatts of
projects throughout the United States, Europe, the Pacific Rim and Latin
America. NRG Energy's World Wide Web site is <www.nrgenergy.com>
Shares of Boston-based EUA are traded on the New York and Pacific Stock
Exchanges. Besides Montaup, EUA's electric utility subsidiaries in
Massachusetts and Rhode Island are Eastern Edison, Blackstone Valley Electric
and Newport Electric, collectively serving more than 300,000 customers. Other
subsidiaries include EUA Cogenex Corp.; EUA Energy Investment Corp.; EUA Ocean
State Corp.; EUA Service Corp.; and EUA Energy Services, Inc. Information
about EUA is available on the World Wide Web at <www.eua.com>
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