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) November 15, 1994
COLONIAL GAS COMPANY
(Exact name of registrant as specified in its charter)
Massachusetts 0-10007 04-1558100
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation or File Number) Identification
organization) Number)
40 Market Street, Lowell, Massachusetts 01852
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (508) 458-3171
(Former name or former address, if changed since last report)
Not applicable
Item 5. Other Events
Colonial Gas Company (the "Company") announced on
November 15, 1994 two cost saving measures involving an
early retirement program and closing its two retail
appliance stores.
The early retirement program is designed to reduce the
Company's workforce by 5% or 25 positions. To meet this
goal, the Company is offering the optional program to 66
employees -- representing 13% of its current utility
workforce of 522 people. Eligible employees must make their
decision by December 31, 1994 and retire by January 31,
1995.
The Company will record the costs of this program in the
fourth quarter of 1994. These costs will be recovered by
lower payroll and fringe expenses in the future, resulting
in a payback period of less than two years. If all eligible
employees choose to retire early, the program's after-tax
costs are expected not to exceed $2.8 million, while its
after-tax savings are estimated at $1.6 million per year.
The Company projects that about half of all eligible
employees will participate in the program -- resulting in
after-tax costs of $1.4 million and after-tax savings of
$0.8 million per year.
The Company will close its two retail appliance stores
on December 31, 1994. While the Company will no longer sell
appliances such as refrigerators, freezers, and dishwashers,
it will continue to market gas heating and hot water
systems. The store closings are not expected to result in
any layoffs or significant lost sales. The Company will
record the full cost of discontinuing this line of business,
estimated not to exceed $394,000 after tax, during the
fourth quarter of 1994.
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.
COLONIAL GAS COMPANY
(Registrant)
Date: November 16, 1994 By: Nickolas Stavropoulos
Vice President - Finance and
Chief Financial Officer
[END OF FORM 8-K FOR COLONIAL GAS COMPANY]
