SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) September 8, 1997
Connecticut Energy Corporation
(Exact Name of Registrant as Specified in Charter)
Connecticut 1-8369 06-0869582
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
855 Main Street, Bridgeport, Connecticut 06604
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (800) 760-7776
_____________________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Events
____________
As previously reported, The Southern Connecticut Gas Company ("Southern"),
a wholly owned subsidiary of Connecticut Energy Corporation (the "Company"),
has identified coal tar residue at three sites in Connecticut resulting from
coal gasification operations conducted at those sites by Southern's
predecessors from the late 1800s through the first part of this century. Many
gas distribution companies throughout the country carried on such gas
manufacturing operations during the same period. The coal tar residue is not
designated a hazardous material by any federal or Connecticut agency, but
some of its constituents are classified as hazardous.
On April 27, 1992, Southern notified the Connecticut Department of
Environmental Protection ("DEP") and the United States Environmental
Protection Agency of the presence of coal tar residue at the sites. On
November 9, 1994, the DEP informed Southern that it had performed a
preliminary review of the information provided to it by Southern and had
determined that, based on current priorities and limited staff resources, a
comprehensive review of the site conditions and subsequent participation by
the DEP "are not possible at this time."
On September 8, 1997, Southern received a letter from the DEP informing it
that the three sites had been entered on the Connecticut Inventory of
Hazardous Waste Sites. The letter states that the site located on Pine
Street in Bridgeport, Connecticut may be of particular interest to the State
of Connecticut because of its proximity to the Connecticut Department of
Transportation expansion project of the U.S. Highway Route #95 Corridor.
Placement of the sites on the Inventory of Hazardous Waste Sites means that
the DEP may pursue remedial action pursuant to the Connecticut General
Statutes.
Each site is located in an area that permits Southern to voluntarily
perform any remedial action. Connecticut law also allows Southern to retain a
Licensed Environmental Professional to conduct further environmental
assessments and, if necessary, to develop remedial action plans in accordance
with Connecticut Remediation Standard Regulations. Southern intends to confer
with officials of the DEP and the Department of Transportation to establish
priorities in connection with the environmental assessments.
Management cannot at this time predict the costs of any future site
analysis and remediation, if any, nor can it estimate when any such costs, if
any, would be incurred. While such future analytical and cleanup costs could
possibly be significant, management believes, based upon the provisions of
the Partial Settlement in Southern's most recent rate order and regulatory
precedent with other local gas distribution companies in Connecticut, that
Southern will be able to recover these costs through its customer rates.
Although the method, timing and extent of any recovery remain uncertain,
management currently does not expect that the incurrence of such costs will
materially adversely impact the Company's financial condition or results of
operations.
SIGNATURES
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.
CONNECTICUT ENERGY CORPORATION
(Registrant)
Date: September 10, 1997 By: /s/Vincent L. Ammann, Jr.
__________________ __________________________
Vincent L. Ammann, Jr.
Vice President and
Chief Accounting Officer
