May 4, 1995
Securities and Exchange Commission
Operations Center
6432 General Green Way
Alexandria, VA 22312-2413
Gentlemen:
We are transmitting herewith Indiana Gas Company, Inc.'s
Current Report on Form 8-K.
Very truly yours,
/s/Kathleen S. Morris
Kathleen S. Morris
KSM:rs
Enclosure
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): May 4, 1995
INDIANA GAS COMPANY, INC.
(Exact name of registrant as specified in its charter)
INDIANA 1-6494 35-0793669
(State or other (Commission File No.) (IRS Employer
jurisdication Identification Number)
of incorporation)
1630 North Meridian Street, Indianapolis, Indiana 46202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (317) 926-3351
Item 5. Other Events
See the following press release dated May 4, 1995,
announcing the receipt by Indiana Gas Company, Inc. of
an order issued by the Indiana Utility Regulatory
Commission on May 3, 1995.
FOR IMMEDIATE RELEASE
INDIANA GAS COMPANY ASSESSES EFFECT OF RATE ORDER
The Indiana Utility Regulatory Commission, in an
order issued May 3, 1995, has determined that costs
incurred by Indiana Gas Company to investigate and
clean up former manufactured gas plant sites are not
recoverable as operating expenses from its customers.
The Commission did indicate that in Indiana Gas' next
rate case it will be appropriate for Indiana Gas to
quantify the effect of these investigation and clean-up
activities as part of the business risk to be
considered by the Commission in establishing Indiana
Gas' overall rate of return.
L. A. Ferger, president and chief executive officer
of Indiana Gas and its parent, Indiana Energy, Inc., in
a statement reacting to the order, said, "We believe
that the Commission's decision regarding the recovery
of the investigation and clean-up costs does not
correctly interpret and apply Indiana law and is
contrary to the decisions reached by courts or
commissions in every other state that has considered
the recoverability of these costs. Accordingly, we
will appeal the Commission's order." Ferger further
stated that, "Based upon clean-up costs of
approximately $13.5 million recorded to date and
recoveries attributable to those costs from all
sources, including insurance carriers and potentially
responsible parties, the order will have no immediate
impact on Indiana Gas' earnings. Cash payments from
those sources to date are approximately $11 million.
Although there can be no assurance of success, we will
continue to manage the manufactured gas plant
remediation program so that amounts received from these
sources will be sufficient to fund all such costs."
On April 14, 1995, Indiana Gas filed suit against a
number of other insurance carriers for payment of
claims for investigation and clean-up costs already
incurred, as well as for a determination that those
carriers are obligated to pay these costs in the
future. Also, Indiana Gas will continue its
negotiations with PSI Energy, Inc. and Northern Indiana
Public Service Company regarding their obligations as
potentially responsible parties to fund investigation
and clean-up costs incurred at the sites.
The Commission's order did authorize Indiana Gas to
recover the costs related to post-retirement benefits
other than pensions under the accrual method of
accounting consistent with the Financial Accounting
Standards Board's Statement of Financial Accounting
Standard No. 106. This will result in an increase in
annual rates and charges of approximately $4.5 million,
which will mean a 1.28-percent increase for the typical
residential customer. In addition, the order directs
Indiana Gas to present information to the Commission
within 30 days regarding whether a related external
trust fund is appropriate.
Indiana Gas is a natural gas distribution company
serving 455,000 customers in north central, central and
southern Indiana.
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
thereunto duly authorized.
INDIANA GAS COMPANY, INC.
Registrant
Dated May 4, 1995 /s/Niel C. Ellerbrook
Niel C. Ellerbrook
Senior Vice President
and Chief Financial Officer
Dated May 4, 1995 /s/Jerome A. Benkert
Jerome A. Benkert
Controller
