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): December 18, 1996
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
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Item 1 through Item 4. Not applicable.
Item 5. Other Events.
(a) Maine Yankee Atomic Power Company. On December 20, 1996, Maine Yankee
Atomic Power Company ("Maine Yankee") announced that its President and Chief
Executive Officer, Charles D. Frizzle, had submitted his resignation to
facilitate a broad restructuring effort. The announcement stated that Mr.
Frizzle, President of Maine Yankee since January 1989, would continue to carry
out his duties and assist the Board of Directors in the transition process, then
step down once a successor had been selected, which is expected to be in early
1997. A temporary committee of the board will oversee all major aspects of the
transition, which will include a comprehensive review of management.
Central Maine Power Company (the "Company") owns 38 percent of the common
stock of Maine Yankee and is responsible for an equal amount of its costs. As
previously reported, the Maine Yankee nuclear generating plant at Wiscasset,
Maine (the "Plant") has been limited to operating at 90 percent of capacity
throughout most of 1996 pending the resolution of issues related to
investigations initiated by the U.S. Nuclear Regulatory Commission ("NRC"). On
December 6, 1996, the Plant was taken off line to resolve cable-separation and
associated issues, which Maine Yankee has said could be completed by early
January 1997. The NRC has notified Maine Yankee, however, that returning the
Plant to service will require NRC approval. Although Maine Yankee has said it
does not expect the inspection to result in an extended outage, it cannot
predict when the Plant will be allowed to return to service. The Company has
been incurring incremental replacement-power costs of approximately $1 million
per week while the Plant has been off-line and expects such costs to continue at
approximately the same rate until the Plant returns to service.
(b) Credit ratings under review. On December 18, 1996, Moody's Investors
Service placed the credit ratings of the Company under review for possible
downgrade. In its release Moody's said the "review is in response to the
increased likelihood that CMP's financial results will be depressed, due to
planned increases in nuclear-related operating and capital expenses, primarily
at the 860-megawatt Maine Yankee plant."
Moody's said the ratings under review were the Company's General and
Refunding Mortgage Bonds (rated "Baa2"), its unsecured medium-term notes and
unsecured pollution-control bonds (rated "Baa3"), its shelf registration for
General and Refunding Mortgage Bonds (rated "(P)Baa2"), and its preferred stock
(rated "baa3"), as well as its counterparty rating of "Baa3" and its "Prime-2"
short-term rating for commercial paper.
Item 6 through Item 8. Not applicable.
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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,
Treasurer, and Chief Financial
Officer
Dated: December 20, 1996
