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) April 25, 1994
THE MONTANA POWER COMPANY
(Exact name of registrant as specified in its charter)
Montana 1-4566 81-0170530
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
40 East Broadway, Butte, Montana 59701
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code (406) 723-5421
<PAGE>
ITEM 5. Other Events
The Montana Public Service Commission approved electric and natural gas
rate increases for The Montana Power Company totaling $13.4 million annually
effective April 28, 1994. In October 1993, $12.8 million of annual increases
were included in rates on an interim basis. In its updated application, the
Company had requested general rate increases of $30.9 million annually for
electricity and $9.6 million annually for natural gas based upon a 12.25 percent
return on common equity. Lower interest costs resulting from refinancings
reduced the combined request by approximately $3.0 million.
The Commission allowed Montana Power a $7.6 million annual electric rate
increase, down $1.2 million from the interim increase of $8.8 million. The
Commission allowed an annual natural gas rate increase of $5.8 million, up
$1.8 million from the interim increase of $4.0 million.
The order reduced the Company's authorized return on common equity from
12.1 percent to 11.0 percent for both the electric and natural gas utilities.
Parties to the proceeding have approximately ten days in which to file
requests for reconsideration. <PAGE>
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.
THE MONTANA POWER COMPANY
(Registrant)
By /s/ W. C. Verbael
W. C. Verbael
Vice President - Accounting,
Finance and Information Services
Dated: April 26, 1994
