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 5, 1997
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 regulatory proceeding pursuant to utility restructuring legislation.
As previously reported, pursuant to the 1997 Maine legislation providing for
restructuring the electric utility industry in Maine, the Maine Public Utilities
Commission ("MPUC") has initiated a proceeding that will determine the Company's
stranded costs, corresponding revenue requirements and stranded-cost charges to
be charged by it when it becomes a transmission-and-distribution utility, and
has scheduled completion of the proceeding for the second half of 1998. On
December 5, 1997, the Company filed direct testimony in the proceeding
estimating its future revenue requirements as a transmission-and-distribution
utility and providing an updated estimate of its strandable costs, which are to
be defined by the MPUC later in the proceeding. The Company estimated its
strandable costs at approximately $1.2 billion. The estimate was developed
without consideration of the Company's own generating assets, which are in the
process of being sold by auction in 1998. The Company's strandable costs could
be mitigated to some extent by the results of the sale. In its estimate of
strandable costs the Company used a methodology consistent with that used by the
MPUC in its earlier announced estimate. The Company cannot predict the results
of the proceeding.
(b) Formation of holding company. On December 8, 1997, the Company filed an
application with the MPUC for authorization to create a holding company that
would have as subsidiaries the Company, the Company's existing non-utility
subsidiaries and other entities. The Company believes that a holding company
structure will facilitate the Company's transition to a partially deregulated
electricity market that provides open access to electricity for Maine consumers
beginning on March 1, 2000. Competing as an electric energy provider in that
market as of that date will require the creation of an energy company that is
legally separate from the Company.
Creation of an affiliated energy marketing affiliate is proposed in the MPUC
filing.
The Company's application to the MPUC also requests approval of the creation of
a limited liability company in which a proposed new subsidiary of the holding
company would hold a fifty percent membership interest to participate in the
natural gas distribution business in Maine, with the remaining fifty percent
interest being held by New York State Electric & Gas Corporation ("NYSEG") or
its affiliate. The Company and NYSEG have entered into an agreement to pursue
the development of a gas distribution business to serve Maine consumers who do
not have access to gas service.
The proposed holding company formation must also be approved by federal
regulators, including the Securities and Exchange Commission and the Federal
Energy Regulatory Commission, and by the holders of the Company's common stock
and 6% Preferred Stock. The Company intends to take steps to pursue these
approvals.
Item 6 through Item 9. 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
Chief Financial Officer
Dated: December 9, 1997
