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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or Section 15(d)
of the Securities Exchange Act of 1934
Date of Report - January 5, 1994
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
(Exact name of Registrant as specified in its charter)
New York 1-3268 14-0555980
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification
Number
284 South Avenue, Poughkeepsie, New York 12601-4879
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (914) 452-2000
<PAGE> CENTRAL HUDSON GAS & ELECTRIC CORPORATION
Item 5. Other Events.
A. Pending Electric and Gas Rate Proceedings.
1. PSC Reference is made to (i) Registrant's Annual
Report, on Form 10-K, for the fiscal year ended December 31,
1992, as amended (the "10-K Report"), and to the subcaption
"Rates - Rate Proceedings - Electric and Gas" of Item 1 thereof,
and (ii) Current Report, on Form 8-K, dated March 19, 1993 and
October 8, 1993, for a description of Registrant's pending
requests, each filed on November 12, 1992, with the Public
Service Commission of the State of New York ("PSC") to increase
its base electric and gas rates.
Registrant had sought an increase in base electric
revenues of approximately $15.7 million during the rate year
(November 1, 1993 - October 1, 1994 "Rate Year") (or 3.8%), based
on a 11.75% return on common equity, a 9.15% return on total
invested capital and a target interest coverage calculated for
regulatory purposes during the Rate Year of not less than 3.15x.
In its request, Registrant included $8 million of "Mirror CWIP"
as a rate moderator.
By Order Adopting Revenue Requirement and Rate Design
("Order"), issued and effective December 16, 1993, the PSC
permitted Registrant to increase its electric base rates by
$5.133 million (or approximately 1.3% on an annual basis), based
on a 10.6% return on common equity, an 8.5% return on total
invested capital, a resultant interest coverage during the Rate
Year of 3.17x, a recognized revenue requirement deficiency of
$14.330 million and the use of $6 million of Mirror CWIP as a
rate moderator, which reduced such deficiency to the $5.133
million authorized increase. The Order also directed that such
rates be designed to produce revenues for the period November 22,
1993 through November 21, 1994.
As a result of the application of "Mirror CWIP" under
the Order, the balance of Mirror CWIP on Registrant's books will
be reduced from $46.5 million to $35.0 million. This results
from the application of: (i) $6 million of Mirror CWIP as a rate
moderator, (ii) $5.2 million of additional Mirror CWIP to offset
deferred balance sheet items, and (iii) $300,000 of Mirror CWIP
to offset the revenues Registrant would otherwise be entitled to
collect for the period November 22, 1993 through December 20,
1993.
In addition, the PSC directed the refund (through
Registrant's electric fuel adjustment clause) to ratepayers of
$3.542 million during the 12 months beginning with the effective
date of the new electric rates; such refund relating to the
dedication of one-half of the net proceeds received from
litigation with respect to the construction of the Nine Mile 2
Plant (which Plant is described under the subcaption "Electric -
Nine Mile 2 Plant" of Item 2 of the 10-K Report).
Registrant was authorized to file its electric rate
tariff amendments to go into effect on or after December 21,
1993.
2. Gas Registrant had sought an increase in its base
rates for firm natural gas service to produce additional annual
net revenues of approximately $1.8 million during the Rate Year,
representing an overall increase in firm gas revenues of 2.52%.
In its filing, Registrant had requested an 11.75% return on
common equity and a 9.15% return on total invested capital.
In the Order, the PSC authorized no increase in
Registrant's base gas rates. The Order in effect recognizes a
$1.237 million revenue requirement deficiency, but eliminates it
by applying $537,000 of depreciation expense from a prior period
as a rate moderator, and by imputing an increase of $700,000 net
revenues from interruptible gas sales of Registrant. The Order
also bases such revenue deficiency on a 10.6% return on common
equity.
Registrant was directed to file a new gas firm
transportation tariff to become effective from December 21, 1993
through November 21, 1994.
3. Final Order The Order was issued in advance of an
opinion and order which will state in full the basis of the PSC's
determinations.
B. Roseton Plant Incident
Reference is made to (i) Item 2 of Registrant's 10-K
Report and to the subcaption "Electric - Roseton Plant" and (ii)
to Item 5 (Other Information - Roseton Steam Electric Generating
Station) of each of Registrant's Quarterly Reports for the
quarterly period ended March 31, 1993 and June 30, 1993 for a
description of the damage caused to Unit No. 2 of the Roseton
Steam Electric Generating Station on March 18, 1993.
Said Unit No. 2 was restored to full service on
December 20, 1993. Restoration costs were approximately $32
million, most of which Registrant expects to recover through
insurance.
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SIGNATURE
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 hereunto duly authorized.
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
(Registrant)
By
JOHN F. DRAIN
Vice President - Controller and Treasurer
Dated: January 5, 1994
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