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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: September 23, 1994
LONG ISLAND LIGHTING COMPANY
(Exact name of registrant as specified in charter)
New York 1-3571 11-1019782
(State of Incorporation) (Commission File No.) (I.R.S. Employer
Identification No.)
175 East Old Country Road, Hicksville, New York 11801
516-755-6650
(Address and telephone number of Principal Executive Offices)
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Item 1. Changes in Control of Registrant
Not applicable.
Item 2. Acquisition or Disposition of Assets
Not applicable.
Item 3. Bankruptcy or Receivership
Not applicable.
Item 4. Changes in Registrant's Certifying Accountant
Not applicable.
Item 5. Other Information
On September 8, 1994, Administrative Law Judges (the "ALJs") of
the Public Service Commission of the State of New York (the "PSC") issued a
recommended decision ("RD") to the PSC with respect to the Company's electric
rate plan for the three year period beginning December 1, 1994. The ALJs agreed
with the Company's proposed 11% return on common equity and its proposal to
freeze base electric rates for the first rate year. While no explicit
recommendation was made, the RD implies that base rates could remain frozen for
the second rate year as well. Although base electric rates would be frozen,
annual rate increases in these years of approximately 1% and 2%, respectively,
can be expected to result from the operation of the Company's fuel cost
adjustment ("FCA") mechanism. The FCA captures, among other amounts, any
increases in the cost of fuel above the level reflected in base rates, and
amounts to be recovered or refunded to ratepayers in excess of $15 million
which may result from the reconciliation of revenue, certain expenses and earned
performance incentives.
With respect to the third rate year beginning December 1, 1996,
the ALJs determined that it was not appropriate for them to issue a
recommendation since, in their opinion, the Company's revenue requirements for
this third year cannot be precisely determined at this time. Alternatively,
the ALJs encouraged the Company and the other parties in this proceeding to
negotiate a settlement concerning any rate increase for this third rate year.
If a settlement is not reached, the RD contemplates that the Company would file
a subsequent proposal with the PSC at the appropriate time. The Company had
requested an overall increase of 4.3% for the third rate year.
The staff of the PSC ("Staff") and other intervening parties
had filed testimony in response to the Company's rate proposal. Staff
concurred with the Company's proposal for an 11% return on common equity in
each of the three years. However, Staff recommended an overall zero percent
rate increase for the
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first two years, contrasted with the Company's proposal for a zero percent base
rate increase and FCA adjustments of 1% and 2% in each of these years,
respectively, as described above. Staff did not make a firm recommendation
for the level of rate relief in the third year. However, Staff's proposal
incorporated the principles of the 1989 Rate Moderation Agreement, including
the full recovery of the Rate Moderation Component.
The Consumer Protection Board and Long Island Power Authority
had also jointly filed testimony in which they proposed that current electric
rates be reduced. Other intervenors proposed various adjustments to the
Company's rate proposal.
The PSC is expected to issue a final order on the Company's
rate proposal in November 1994. The Company is unable to predict the ultimate
outcome of this rate proceeding.
Item 6. Resignations of Registrant's Directors
Not applicable.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits
Not applicable.
Item 8. Change in Fiscal Year
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.
LONG ISLAND LIGHTING COMPANY
Registrant
By ANTHONY NOZZOLILLO
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ANTHONY NOZZOLILLO
Senior Vice President-Finance
Dated: September 23, 1994
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