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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 - December 19, 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
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (914) 452-2000
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
Item 5. Other Events.
A. City of Newburgh Matter
Reference is made to Registrant's Quarterly
Report, on Form 10-Q, for the quarterly period ended September
30, 1994, and to the caption "Legal Proceedings - Environmental
Claims" of Part II thereof for a description of the possible
migration of a tar-like substance from a site owned by Registrant
to the site of a wastewater treatment plant owned by the City of
Newburgh, New York ("City").
On November 28, 1994, Registrant received a letter
from counsel to the City, which letter purports to be a notice
pursuant to the "Citizens' Suit" provisions of the federal
Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. Section
6972, that the City intends to file a citizens' suit against
Registrant. The letter asserts that an "imminent and substantial
endangerment to health and the environment" exists by virtue of
the release of allegedly hazardous coal-tar material from the
former Water Street gas manufacturing plant site owned by
Registrant.
Any such action, if successful, could require
Registrant to take remedial action, potentially including removal
of any solid or hazardous waste which is determined to present
"imminent and substantial endangerment to health or the
environment." RCRA authorizes the award of the costs of
litigation including reasonable attorney and expert witness fees,
if found to be appropriate by the Court.
Under RCRA, the City has a 90 day waiting period
(expiring on or about February 27, 1995), before which it can
commence any such action. If, however, prior to the commencement
of any such action by the City, either the Administrator of the
U.S. Environmental Protection Agency (the "Administrator") or the
State of New York has (i) commenced and is diligently prosecuting
a civil action against Registrant under RCRA, (ii) actually
engaged in a removal action under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 ("CERCLA"), or
(iii) in the case of the Administrator, incurred costs to
initiate a Remedial Investigation and Feasibility Study under
CERCLA and is diligently proceeding with a remedial action
thereunder, any action by the City under the citizens' suit
provision of RCRA would be precluded. At this time no action has
been taken by either the State of New York or the Administrator
with respect to this matter.
Registrant can make no prediction as to whether
any action will be commenced either by the City, the
Administrator, the State of New York, or by any other
governmental entity. Registrant cannot predict whether any
action commenced by the City could also include other claims
including damages. Registrant can make no reasonable estimate of
the cost to it if it were held liable to the City in this matter;
however, Registrant intends to seek reimbursement from its
insurance carriers for the cost of any such liability, but cannot
predict the extent of such reimbursement at this time.
Registrant's study of this matter is continuing
and Registrant has not yet been able to determine whether it was
the generator of the tar-like substance in question.
B. Asbestos Litigation
Reference is made to Registrant's Quarterly Report
on Form 10-Q for the quarterly period ended September 30, 1994
("10-Q Report") and to the caption "Asbestos Litigation" in Part
II, Item 1 (Legal Proceedings) thereof for a discussion of the
litigation regarding asbestos currently pending against
Registrant.
In addition to the asbestos lawsuits referred to
in the 10-Q Report, Registrant has been served with a complaint
dated November 21, 1994 by which ten (10) additional plaintiffs
have sued Registrant. This complaint is filed in the New York
State Supreme Court, County of New York. The plaintiffs allege
that they were employees of independent contractors who were
injured by exposure to asbestos while working at Registrant's
facilities. Each of these ten plaintiffs seeks $10,000,000 in
compensatory damages, plus punitive damages.
As of December 13, 1994, Registrant is a defendant
or third-party defendant in 276 asbestos lawsuits. Although the
Registrant is presently unable to assess the validity of these
276 lawsuits, based on information known to the Registrant at
this time, including its experience in settling asbestos cases
and in obtaining dismissals of asbestos cases, the Registrant
believes that the costs to be incurred in connection with these
lawsuits will not have a material adverse effect on the
Registrant's financial position. However, if the Registrant were
ultimately held liable under these lawsuits and insurance
coverage were not available, the cost thereof could have a
material adverse effect (a reasonable estimate of which cannot be
made at this time) on the financial condition of the Registrant
if the Registrant could not recover all or a substantial portion
thereof in rates. Registrant's insurance does not extend to
punitive damages.
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SIGNATURES
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 - Finance and Controller
Dated: December 19, 1994
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