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 - November 23, 1999
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
(Exact name of registrant as specified in its charter)
NEW YORK 1-3268 14-0555980
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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
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Item 5. Other Events.
1. AUCTION OF THE ROSETON AND DANSKAMMER PLANTS
Reference is made to (i) the caption "Auction of Fossil
Generation Plants" in Note 2 of the Notes to Financial Statements referred to in
Item 8 of the Registrant's Annual Report, on Form 10-K, for the year ended
December 31, 1998 and (ii) Part II, Item 5(c) of the Registrant's Quarterly
Report, on Form 10-Q, for the quarterly period ended September 30, 1999, for a
discussion of the sale of the Registrant's interests in the Roseton Steam
Electric Generating Plant ("Roseton Plant") and the Danskammer Electric
Generating Station ("Danskammer Plant") required by that certain Amended and
Restated Settlement Agreement, dated January 2, 1998, by and among the
Registrant, the Staff of the New York State Public Service Commission ("PSC")
and others ("Settlement Agreement"), which Settlement Agreement was thereafter
accepted and approved by the PSC by final Order issued and effective on June 30,
1998.
In the Settlement Agreement, the consideration received by the
Registrant, after transaction costs, in the sale of its interests in such Plants
is available to the Registrant, up to the net book value of such Plants, for
investment in unregulated operations or other disposition for the benefit of
shareholders without PSC approval ("Unregulated Investments"). In the Settlement
Agreement, the Registrant also retained the right for an affiliate to
participate in the auction process of such Plants. In the event that no
Registrant affiliate were to bid in such auction, the Registrant would retain,
for Unregulated Investments, an additional amount of such consideration equal to
10% of the consideration of such sale in excess of the net book value of its
interest in such Plants; such excess being hereinafter called the "Earned
Auction Incentive". However, the aggregate of all such consideration to be so
available to the Registrant cannot exceed $17.5 million ("Cap").
On November 19, 1999, the Registrant filed with the PSC for
review and approval an auction plan for a combined auction of the Roseton Plant
and the Danskammer Plant ("Auction Plan"). The Auction Plan filing also requests
the PSC's approval for certain accounting and ratemaking proposals relating to
the Settlement Agreement, including the following:
1. An increase in the Cap, on a formula basis, not to exceed
$18.5 million;
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2. Any Earned Auction Incentive would be recognized as income over a
period of three (3) to five (5) years; and
3. The Earned Auction Incentive would apply not just to the
Company's interest in the Roseton Plant and the Danskammer Plant
(two other utilities own co-tenancy interests in the Roseton
Plant), but would apply to the gross consideration received from
a combined auction of these Plants less the gross proceeds to be
provided to the other owners of the Roseton Plant. In the Auction
Plan filing, the Registrant stated to the PSC that it is willing
to waive
the right of an affiliate of the Registrant to participate in such auction if
the PSC approves all of the accounting and ratemaking proposals described in the
Auction Plan filing.
The Registrant can make no prediction as to what action the PSC
will take on the Auction Plan filing, including said accounting and ratemaking
proposals.
2. APPOINTMENT OF OFFICERS
At the November 19, 1999 meeting of the Board of Directors of
Registrant, the following appointments were made as officers of Registrant:
Ms. Donna S. Doyle: Vice President - Accounting and Controller
Ms. Gladys L. Cooper: Corporate Secretary and Assistant Vice
President - Governmental Relations
Ms. Denise D. VanBuren: Assistant Vice President - Corporate
Communications
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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: /s/ Steven V. Lant
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STEVEN V. LANT
Chief Financial Officer and Treasurer
Dated: November 23, 1999
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