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: May, 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 May, 1995
Item 5. Other Material Events
Maine Yankee Board of Directors Approves Repair of Steam Generator
Tubes
Reference is made to the Company's Form 8-K dated April 11, 1995
and Form 10-Q dated May 10, 1995, in which the Company reported that
Maine Yankee was investigating the repairs of all tubes in the plant's
three steam generators.
On May 22, 1995, the Maine Yankee Board of Directors approved a
plan to repair these tubes using welded sleeves. 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 has been used at other nuclear facilities.
In addition to the extensive technical analysis on the steam generators
performed by the Maine Yankee technical staff, two independent studies
on the overall condition of the plant were also undertaken. Those
studies conducted by the Bechtel Corp. and Yankee Nuclear Services
Division examined all components in the primary and secondary sides of
the plant. Both studies concluded that the overall mechanical condition
of the plant was very good.
The sleeving of the steam generator tubes is estimated to cost
approximately $40 million, with the Company's share being $2 million.
Maine Yankee projects that the plant will return to service by the end
of 1995. While Maine Yankee is being repaired, 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. On May 1, 1995, the Company filed its five-year rate
plan with the Maine Public Utilities Commission (MPUC). As an element
of that rate plan, the Company proposes the elimination of the fuel
adjustment clause except for the cost of power purchased from the
Wheelabrator-Sherman Energy Company, an independent power producer. As
proposed, the rate plan also defers the replacement power costs
associated with this Maine Yankee extended outage. The rate plan also
proposes a mechanism to handle similar unexpected Maine Yankee outages
during the rate plan period. In addition, the rate plan proposes the
amortization of the sleeving expenses over a five-year period.
MAINE PUBLIC SERVICE COMPANY
Registrant
May 24, 1995 /s/ Larry E. LaPlante
Larry E. LaPlante, Vice President
Finance and Treasurer
