<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K\A
AMENDMENT NO. 1*
CURRENT REPORT
Pursuant to Section 13 or Section 15 (d)
of the Securities Exchange Act of 1934
Date of Report - August 4, 1998
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
(Exact name of Registrant as specified in its Charter)
New York 1-3268 14-0555980
______________ _________________ _____________
State or other (Commission File (IRS Employer
jurisdiction of Identification) Number)
incorporation 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
*The purpose of this Amendment is to submit Appendix C to Exhibit
10(1) - Order of the Public Service Commission, which Appendix
was inadvertently omitted from the Current Report on Form 8-K,
dated, and filed with the Securities and Exchange Commission on,
July 24, 1998.
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
Item 7. Financial Statements and Exhibits
(c) Exhibits. Following is the list of Exhibits
furnished in accordance with the provisions of Item 601 of
Regulation S-K, filed as part of this Current Report on Form 8-K:
Exhibit No.
(Regulation S-K
Item 601
Designation)
EXHIBITS
(10) (1) Order of the Public Service Commission of the
State of New York, issued and effective June 30, 1998,
explaining in greater detail and reaffirming its
Abbreviated Order, issued and effective February 19,
1998, as described in Registrant's Current Report, on
Form 8-K, dated February 10, 1998
(10) (2) By laws of the Company in effect on the date
of this report.
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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: (SGD.) DONNA DOYLE
DONNA DOYLE
Controller
Dated: August 4, 1998<PAGE>
EXHIBIT INDEX
Following is the index of Exhibits furnished in accordance
with the provisions of Item 601 of Regulation S-K, filed as part
of this Current Report on Form 8-K:
Exhibit No.
(Regulation S-K
Item 601
Designation)
Exhibits
(10) (1) Order of the Public Service Commission of the
State of New York, issued and effective June 30, 1998,
explaining in greater detail and reaffirming its
Abbreviated Order, issued and effective February 19,
1998, as described in Registrant's Current Report, on
Form 8-K, dated February 10, 1998
(10) (2) By laws of the Company in effect on the date
of this report.<PAGE>
APPENDIX C
(CH LETTERHEAD)
February 26, 1998
Hon. John C. Crary
Secretary
Public Service Commission
of the State of New York
Three Empire State Plaza
Albany, NY 12223
Dear Secretary Crary:
Re: Commission Case No. 96-E-0909
In the Commission's Order Adopting Terms of Settlement
Subject to Modifications and Conditions (Issued and Effective
February 19, 1998), the Commission stated that the Amended and
Restated Settlement Agreement ("revised Agreement") dated January
2, 1998, "generally offer(s) a sound regulatory framework for
Central Hudson, its competitors, and its customers in the
transition to fully competitive generation and energy service
markets...." The Commission also stated in such Order that it
was "requiring modifications and adding conditions" to the
revised Agreement, which modifications and conditions were
enumerated as items (1) through (10) in such Order. In addition,
the Commission further stated that it adopted "...the terms of
the revised Agreement...subject to the modifications and
conditions (it) enunciated" and incorporated"... the revised
Agreement's terms...by reference into" the Order.
Furthermore, Ordering Paragraph "3." of the Order (Mimeo,
p.7) provides that Central Hudson:
"...must submit a written statement of unconditional
acceptance of the modifications and conditions
contained in this order, signed and acknowledged by a
duly authorized officer by February 26, 1998. This
statement, along with substitute language responding to
Appendix C, should be filed with the Secretary of the
Commission and served on all parties in this
proceeding."
In response to these provisions, the signatories to the
revised Settlement submit herewith a document entitled
"Modifications to Amended and Restated Settlement Agreement."
This document reflects the unconditional agreement of the revised
Agreement's signatories to i) the "modifications and conditions"
set forth in the Commission's Order, ii) the provisions of
Appendix B of that Order and iii) to language implementing the
provisions of Appendix C of the Order.
In addition, the Commission's condition (10) states that the
revised Agreement was being adopted "on the condition (that)
Central Hudson agrees to accept the Commission Order, issued June
23, 1997, concerning the farmer and food processor pilot program
(Case 96-E-00948 [sic])." In response to this provision, please
be advised that Central Hudson agrees to accept the Commission
Order of June 23, 1997 in Case No. 96-E-0948 insofar as that
Order is applicable to Central Hudson. In this connection, it is
noted that the revised Agreement contains a Retail Access Program
that will supersede (see, revised Agreement, Part V.C. at p. 33)
the farmer and food processor pilot program of Case 96-E-0948.
In adopting and approving the revised Agreement (with
modifications), the Commission reserved its options in the event
of subsequent judicial action altering a portion of the
agreements. Central Hudson trusts that the Commission accords
the same option to other signatories to the agreements.
Attaining the revised Agreement (and the Modifications
Agreement) was possible because the participants committed
significant resources to discussing, defining and memorializing
mutual objectives and because these agreements contain mutual
concessions and commitments. We are encouraged by the
cooperation shown in developing these agreements that all
participants will continue to implement these agreements in the
same spirit.
Central Hudson's success as a low cost provider of regulated
utility services has established core values that will guide us
in the transition to competition and continue to be lodestars to
its transition to the new, holding company authorized in the
revised Agreement. In addition to providing the springboard for
continued growth in shareholder value by restructuring Central
Hudson, the adoption of the revised Agreement by the Commission
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and of the "Modifications Agreement" by the signatories
establishes a broad and far-reaching program for implementing the
Commission's competitive vision and benefitting consumers in the
Mid-Hudson Valley. Central Hudson looks forward to implementing
the new initiatives with a focus on customer values in a
government-private partnership oriented around market-developed
solutions and innovations.
Very truly yours,
(SGD.) ARTHUR R. UPRIGHT
ARTHUR R. UPRIGHT
cc: All Active Parties in Case No. 96-E-0909
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STATE OF NEW YORK
PUBLIC SERVICE COMMISSION
In the Matter of Central Hudson
Gas & Electric Corporation's Case 96-E-0909
Plans for Electric Rate/
Restructuring Pursuant to
Opinion No. 96-12.
MODIFICATIONS TO AMENDED AND
RESTATED SETTLEMENT AGREEMENT
WHEREAS, by Order Adopting Terms of Settlement Subject to
Modifications and Conditions (Issued and Effective February 19,
1998), the Commission stated that the terms of the Amended and
Restated Settlement Agreement ("revised Agreement") dated January
2, 1998 "...generally offer a sound regulatory framework for
Central Hudson, its competitors, and its customers in the
transition to fully competitive generation and energy service
markets;" and
WHEREAS, the Commission also stated in such Order that it
was "requiring modifications and adding conditions" to the
revised Agreement, which modifications and conditions were
enumerated as items (1) through (10) in such Order; and
WHEREAS, the Commission adopted "...the terms of the revised
Agreement...subject to the modifications and conditions
enunciated" and incorporated "...the revised Agreement's
terms..by reference into" the Order; and
WHEREAS, the signatories to the revised Agreement have
conferred and agreed to the modifications and conditions
identified in Commission's Order and have executed this document
to memorialize all the modifications to the revised Agreement;
NOW, THEREFORE, the signatories agree to modify the revised
Agreement as follows:
1. The revised Agreement shall be deemed to contain each of the
ten modifications, conditions or understandings enumerated
by the Commission at pages 2-4 of the Order, as if
incorporated in full therein.
2. The revised Agreement shall be deemed to include the
provisions of Appendix B of the Order, as if set forth in
full therein.
3. With respect to the provisions of Appendix C of the Order,
the revised Agreement shall be deemed to be modified as
follows:
A. The definition of "Strandable Costs" (p. 13 of revised
Agreement) shall be modified to read: "Those production
expenditures made by Central Hudson in fulfilling its
obligation to serve and provide safe, reliable electric
service to customers within its franchise territory
which are not expected to be recoverable in a
competitive electricity market. The description and
components of Fossil Generation Strandable costs are
contained in Part VIII, A".
B. The definition of "NTAC" (p. 10 of the revised
Agreement) shall be revised to read "...(NYPA")
Transmission Adjustment Charge...."
C. Part V, D. (p. 34-36 of the revised Agreement) shall be
revised by the insertion of the following material at
the end of the carry-over paragraph on the top of page
35 of the revised Agreement (before the paragraph which
begins "Options ii' or iii' above...."): "Until such
time as Retail Access becomes available to S.C. No. 13
customers pursuant to the procedures set forth in
Section V, J., S.C. No. 13 customers will not be
required to enter into full or partial requirements
contracts with Central Hudson to receive the 5% base
rate reduction. Effective February 27, 1998, S.C. No.
13 energy, demand and RKVA will be billed at 95% of the
full monthly rates. The discount is not applicable to
that portion of a customer's load served under the
Growth Incentive Discount or Power for Jobs Special
Provisions contained within S.C. No. 13. At the time
Retail Access becomes an approved tariff option for
S.C. No 13 customers, S.C. No. 13 customers will be
required to contract with Central Hudson to either
continue to receive the 5% discount or to select the
50% CTC Retail Access tariff option."
D. Part VI, B., 13 (p. 51-53) of the revised Agreement) is
modified by changing the period to a comma at the end
of the first paragraph thereof and adding: "to the
extent that the provision of such energy products or
services benefits Regco's customers."
E. Part XIII, A. (p. 92-93) of the revised Agreement), is
modified to read, in its entirety, as follows: "This
Agreement shall become effective as of the Effective
Date and shall continue to effect until June 30, 2001;
provided however that the obligations of Parts V. K.,
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VI. B., VII. G., H. and I. VIII. B., X. A., B., C., E.
and F., XII. A., XIII. B. and C., and Attachments H and
I of this Agreement shall survive the termination of
this Agreement; and provided further that the provision
of parts IV. F., G., I. and L. shall remain effective
until such time as the Commission authorizes a general
rate change to become effective pursuant to Part IV.
A., or pursuant to condition (4) of the Commission's
February 19, 1998 Order."
4. This Agreement may be executed in counterparts.
WHEREFORE, the signatories to the revised Agreement have
executed these modifications as of February 26, 1998.
Central Hudson Gas & Electric Corporation
By: (SGD.) Arthur Upright
Staff of the Department of Public Service
By: (SGD.) Philip S. Teumim
Pace Energy Project
By:
New York State Consumer Protection Board
By: (SGD.) Timothy S. Carey
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