FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April, 1995
MAINE PUBLIC SERVICE COMPANY
(Exact name of registrant as specified in its charter)
Maine 1-3429 01-0113635
(State, or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
209 State Street, Presque Isle, Maine 04769
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code 207-768-5811
Current Report, Form 8-K for Date of Report:
Maine Public Service Company April, 1995
Item 5. Other Material Events
Maine Yankee Atomic Power Company (Maine Yankee) to Further Explore
Sleeving of All Steam Generator Tubes Reference is made to the Company's Form
10-K dated March 29, 1995, Part I, "Subsidiaries and Affiliated Companies,"
in which the Company reported that Maine Yankee was experiencing degradation
of its steam generator tubes in the form of circumferential cracking. During
the refueling-and-maintenance shutdown that started in early February of
1995, Maine Yankee detected an increased rate of degradation of the Plant's
steam generator tubes in excess of the number expected and started evaluating
several courses of action. The Company owns 5% of the Common Stock of Maine
Yankee. In 1994, Maine Yankee provided 43.3% of the Company's power
requirements.
On April 7, 1995, Maine Yankee announced its intention to further
explore sleeving all 17,000 steam generator tubes. Although testing of all
tubes revealed that approximately 40% of the tubes are free of defects, Maine
Yankee plans to sleeve all of the tubes as a preventative safety measure.
Sleeving involves the inserting of a tube of slightly smaller diameter into
the defective tube, the sleeve is welded in place and acts as a new tube.
Sleeving is a proven technology and must meet rigorous federal standards of
safety and licensing. If the sleeving option is approved and implemented,
Maine Yankee projects that the plant could return to service in the final
quarter of 1995. The Company estimates that its share of the cost of this
option could be approximately $2.5 million.
At this time, the Company cannot predict whether the sleeving option
will be approved for implementation. While Maine Yankee is not operating,
the Company estimates that the additional costs for replacement power can be
as high as approximately $500,000 to $600,000 per month.
These replacement power costs have traditionally been subject to
collection under the fuel adjustment clause. Reference is made to the
Company's Form 8-K dated February 13, 1995 in which the Company announced its
intention to file a five-year rate plan with the Maine Public Utilities
Commission (MPUC). As an element of that rate plan, the Company intended to
propose elimination of the fuel adjustment clause except for the cost of
power purchased from the Wheelabrator-Sherman Energy Company, an independent
power producer. The Company had proposed to file its rate plan on April 10,
1995, but has delayed that filing until the scope of Maine Yankee's situation
is better known. The Company is now re-examining its plan in order to
account for the additional expenses resulting from Maine Yankee's repair and
extended shutdown. The Company cannot predict the timing or the extent of
the recovery of these additional expenses.
MAINE PUBLIC SERVICE COMPANY
Registrant
April 11, 1995 Larry E. LaPlante
Larry E. LaPlante, Vice President
Finance and Treasurer
