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): March 23, 1995
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.
The Company owns 38 percent of the common stock of Maine
Yankee Atomic Power Company ("Maine Yankee"), which is the owner
and operator of an 860-megawatt nuclear generating plant in
Wiscasset, Maine (the "Maine Yankee Plant" or the "Plant"), and
purchases approximately the same percentage of the Plant's output
at a rate based on Maine Yankee's costs. The Maine Yankee Plant,
like other pressurized water reactors, has been experiencing
degradation of its steam generator tubes, principally in the form
of circumferential cracking, which, until early 1995, was
believed to be limited to a relatively small number of tubes. In
the past the detection of defects has resulted in plugging the
degraded tubes to prevent their subsequent use.
During the refueling-and-maintenance shutdown that
commenced in early February of 1995 and is continuing, Maine
Yankee detected through new inspection methods and procedures
increased degradation of the steam generator tubes well above its
expectations and is assessing the extent of degradation and
evaluating available courses of action to address the matter.
The detection of a significantly larger number of degraded tubes
would adversely affect the operation of the Maine Yankee Plant
and result in substantial additional costs to Maine Yankee, with
the Company being responsible for its pro-rata share of non-
capital costs under its power contract with Maine Yankee. In
addition, the Company would incur substantial costs for
replacement power, the amount of which would depend on the length
of time the Plant is out of service and the prices paid for the
replacement power.
With the termination of the reconcilable fuel-and-
purchased-power adjustment under the Company's Alternative Rate
Plan ("ARP") that became effective on January 1, 1995, the cost
of replacement power during a Maine Yankee outage would in
general be treated like other Company expenses, would be limited
by the ARP's price index mechanism, and would not be deferred and
collected through a specific fuel-rate adjustment as it would
have been under the regulatory mechanisms in place prior to
January 1, 1995. The result, absent extraordinary circumstances
that under certain provisions of the ARP could result in a rate
adjustment based on low earnings or the incurring of
extraordinary costs by the Company, is that costs associated with
replacement power during an extended Maine Yankee outage would
have an adverse impact on Central Maine's financial results,
during 1995.
In addition, substantial capital expenditures could be
required to restore the Maine Yankee Plant to service, especially
if it is determined that the Plant's three steam generators
should be replaced. The cost of replacement generators would
depend to a large extent on whether suitable generators were<PAGE>
already available from a previously canceled plant or otherwise,
and, if such generators are available, the Plant could be out of
service for up to 12 to 18 months. If it were necessary to
manufacture and install new generators, the Plant could be out of
service for a substantially longer period. If the generators are
replaced, Maine Yankee might request equity contributions from
its common stockholders, including the Company, under its capital
funds agreements with them, and the stockholders would be
required to contribute their pro-rata shares, subject in some
cases to regulatory approvals.
The Company cannot now predict what remedial action Maine
Yankee will adopt, to what extent the operation of the Plant will
be affected, or what costs will ultimately be borne by the
Company, but such costs could be material.
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:
D. E. Marsh
Vice President, Corporate
Services, and Chief
Financial Officer
Dated: March 23, 1995<PAGE>
