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 October 11, 1994
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(Date of earliest event reported)
New York State Electric & Gas Corporation
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Exact name of registrant as specified in its charter)
New York 1-3103-2 15-0398550
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
P.O. Box 3287, Ithaca, NY 14852-3287
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Address of principal executive offices) (Zip Code)
607-347-4131
Registrant's telephone number, including area code . . . . . .
NA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
Dividend
On October 14, 1994, New York State Electric & Gas
Corporation (Company) issued the following news release regarding
its common stock dividend.
DIVIDEND REDUCTION "TURNING POINT" FOR NYSEG
FOR IMMEDIATE RELEASE
The board of directors of New York State
Electric & Gas Corporation (NYSEG) today
declared a quarterly dividend of 35 cents a
share on the common stock of the corporation
payable November 15, 1994 to holders of
record October 25, 1994. The dividend for
the last quarter was 55 cents a share.
"Today's dividend reduction is a turning
point for NYSEG," said James A. Carrigg,
chairman, president and chief executive
officer. "No doubt the pace of change in our
industry will continue to accelerate.
Financial flexibility will be essential in a
competitive environment, and stronger
utilities will command higher stock
valuations. This dividend reduction will
allow us to improve the financial integrity
of NYSEG and offer improved shareholder value
over the long term."
NYSEG continues to implement strategies
to improve earnings. Those strategies
include negotiating flexible rate contracts
with key industrial customers, offering
incentive rates for increased energy usage,
investing in energy-related business
opportunities and promoting energy-efficient
electrotechnologies.
The company also continues to
aggressively pursue additional cost savings.
"We are working hard to eliminate the New
York State gross receipts tax on utilities
and will continue to develop ways to lessen
the impact of mandated purchases from non-
utility generators," Mr. Carrigg said.
"Let me assure you, we remain deeply
committed to our shareholders, and we
understand the importance of the dividend.
While difficult, this action is a crucial
step in positioning NYSEG for a competitive
environment. We remain convinced that NYSEG
will succeed and that we will provide
attractive returns for our shareholders," Mr.
Carrigg said.
The board also declared quarterly
dividends on the following series of
preferred stock payable January 1, 1995 to
holders of record at the close of business
December 7, 1994.
Series Dividend Per Share
3.75% 93.75 cents
4 1/2% $1.125
6.48% $1.62
8.95% ($25 par value) 55.9375 cents
7.40% ($25 par value) 46.25 cents
6.30% $1.575
Adjustable rate series B 39.75 cents
Legal Proceeding
By complaint dated August 12, 1994, as amended October 11,
1994, a class action lawsuit was commenced against the Company
and an officer of the Company ("Defendants") in the United States
District Court for the Eastern District of New York. The lawsuit
was brought on behalf of purchasers of the Company's Common Stock
pursuant to its Dividend Reinvestment and Stock Purchase Plan
between May 13 and August 10, 1994, and on behalf of purchasers
of the Company's securities on the open market between March 15,
1994 and August 10, 1994. The complaint alleges that the
Defendants violated the federal securities laws by materially
misstating the financial health of the Company. Plaintiffs are
seeking to recover damages in an unspecified amount, which they
allegedly sustained as a result of purchasing securities of the
Company at artificially inflated prices. The Defendants believe
that they did not violate the federal securities laws and that
this lawsuit is without merit.
<PAGE>
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.
NEW YORK STATE ELECTRIC & GAS CORPORATION
(Registrant)
By Everett A. Robinson
Everett A. Robinson
Vice President and Controller
Date: October 14, 1994
