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 (Date of earliest event reported): July 5, 1994
CENTRAL MAINE POWER COMPANY
(Exact name of registrant as specified in its charter)
Maine 1-5139 01-0042740
(State of Incorporation) (Commission (IRS Employer
File Number) Identification Number)
83 Edison Drive, Augusta, Maine 04336
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code:(207) 623-3521<PAGE>
Item 1 through Item 4. Not applicable.
Item 5. Other Events.
(a) Approval of stipulation in power contracts prudence
investigation. As previously reported, on April 4, 1994 the
Maine Public Utilities Commission ("PUC") had approved a
stipulation supported by the Company and other parties to an
earlier proceeding on non-utility generator ("NUG") contracts
that resolved or limited a number of regulatory issues. As part
of that stipulation the parties agreed that any further prudence
investigation by the PUC of the Company's administration prior
to April 4, 1994 of NUG contracts of more than ten megawatts
would conclude with the issuance of a final PUC order no later
than October 1, 1994.
On July 5, 1994, the PUC approved a stipulation that
provides that the Company will not be subject to any further
investigations, disallowances, or other financially adverse
consequences with respect to its administration prior to March
22, 1994, of the contracts that were being investigated. In the
approved stipulation the Company also agreed to provide regular
reports to the PUC on the status of renegotiation of its high-
cost NUG contracts and to postpone current recovery of $.5
million associated with earned 1991 demand-side-management
incentives. The Company further agreed that it would not seek
recovery of such deferred incentives if its earned rate of
return on common equity exceeds 6.8% in 1994. The Company
believes that the PUC's approval of this stipulation resolves
another of the complex issues that have been posing risks to the
Company since the PUC's initiation of a general investigation of
the Company's administration of NUG contracts by its order of
October 28, 1993.
(b) Approval of fuel cost adjustment stipulation. On
July 18, 1994, the PUC approved a stipulation entered into by
the Company and other parties providing for an annual fuel-
clause revenue increase of $23.3 million. The increase is
composed primarily of a fuel cost adjustment, except for $.8
million for recovery of non-utility generator contract buyout or
restructuring costs and $.6 million in unrecovered 1991 demand-
side management incentives pursuant to the July 5, 1994
stipulation discussed in paragraph (a) above.
In addition, the approved stipulation provides for an
expedited approval process for the Company to implement new
special-rate contracts with individual customers. The expedited
treatment is limited to contracts totaling in the aggregate not
more than 45 megawatts of demand and is subject to other
eligibility criteria, but the Company believes the new approval
process will provide significant flexibility in meeting the
increased competition affecting its customer base. The July 18
stipulation approval also resolves several other ratemaking and
accounting matters that had been pending before the PUC.
Item 6 through Item 8. Not applicable. <PAGE>
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 thereunto duly
authorized.
CENTRAL MAINE POWER COMPANY
By
David E. Marsh
Vice President, Corporate Services,
and Chief Financial Officer
Dated: July 21, 1994<PAGE>
