SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
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) April 11, 1997
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Commission File Number 0-404
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THE CONNECTICUT LIGHT AND POWER COMPANY
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(Exact name of registrant as specified in its charter)
CONNECTICUT 06-0303850
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
SELDEN STREET, BERLIN, CONNECTICUT 06037-1616
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(Address of principal executive offices) (Zip Code)
(860) 665-5000
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events
On April 11, 1997, Northeast Utilities (parent company)(NU) and two of
its electric operating subsidiaries, The Connecticut Light and Power Company
(CL&P) and Western Massachusetts Electric Company (WMECO), entered into an
interim arrangement (Interim Arrangement), which expires on May 30, 1997,
whereby NU, CL&P and WMECO will seek regulatory approval for certain
amendments to its three year revolving credit agreement with a group of
banks, which was executed in November 1996 (Original Credit Agreement). Under
the Original Credit Agreement NU, CL&P and WMECO were able to borrow on a
revolving basis up to $150 million, $313.75 million and $150 million,
respectively, subject to a total borrowing limit of $313.75 million for all
three borrowers. Because of NU's and CL&P's potential violations of various
financial ratio tests, the companies obtained a series of short-term waivers
beginning February 12, 1997, in order to maintained limited access to the
Original Credit Agreement. These have been superseded by the Interim
Arrangement. Under the short-term waivers, NU, CL&P and WMECO were entitled
to access $27 million, $100 million and $150 million, respectively, under the
Original Credit Agreement.
Under the Interim Arrangement, CL&P and WMECO are able to borrow up to
$100 million and $90 million, respectively, or $190 million in the aggregate.
NU has agreed not to borrow under the Interim Arrangement. The Interim
Arrangement contemplates that CL&P and WMECO will collateralize future
borrowings with first mortgage bonds and that certain financial ratio
covenants in the Original Loan Agreement will be amended in light of current
earnings expectations. Once the companies receive final regulatory approval
of the amendments (Amended Credit Agreement), CL&P and WMECO will be able to
borrow, subject to the availability of first mortgage bond collateral, up to
their full respective amounts under the Original Credit Agreement, $313.75
million and $150 million. NU, which cannot issue first mortgage bonds, will
be able to borrow up to $50 million if NU consolidated, CL&P and WMECO each
meet certain interest coverage tests for two consecutive quarters.
The arrangements proposed under the Amended Credit Agreement require
approval from the Securities and Exchange Commission (SEC), the Connecticut
Department of Public Utility Control (DPUC), and the Massachusetts Department
of Public Utilities (DPU). The companies have already filed applications
with the DPUC and DPU and expect to file with the SEC shortly. The companies
are hoping to receive all necessary approvals by the end of May.
Management believes that the Amended Credit Agreement and other existing
credit facilities should provide the companies with sufficient liquidity to
meet their needs as they work to return to service the three nuclear power
plants at Millstone Station in Waterford Connecticut. The companies
currently anticipate having one unit ready to restart in the third quarter of
1997, a second in the fourth quarter of 1997, and the third in the first
quarter of 1998. Management hopes to have at least one unit operating in the
second half of 1997.
CL&P and WMECO also are planning to issue $200 million and $60 million,
respectively, in aggregate principal amount of new first-mortgage bonds to
the public in the next few months. Assuming these public sales of bonds are
consummated, CL&P and WMECO could issue approximately $230 million and $90
million, respectively, of additional first mortgage bonds as collateral to
the banks under the Amended Credit Agreement.
For more information regarding the companies' financial condition and
other available credit facilities, see "Item 1. "Business - Overview of
Nuclear and Related Financial Matters" and "Financing Program" in NU's,
CL&P's and WMECO 1996 Form 10-K.
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 hereunto duly authorized.
THE CONNECTICUT LIGHT AND POWER COMPANY
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Registrant
Date April 21, 1997 By /s/John H. Forsgren
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John H. Forsgren
Executive Vice President and
Chief Financial Officer
