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 August 26, 1996
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(Date of earliest event reported)
New York State Electric & Gas Corporation
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(Exact name of registrant as specified in its charter)
New York 1-3103-2 15-0398550
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(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)
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Item 5. Other Events
Rate Matter (See Form 10-Q for quarter ended June 30, 1996, Item
2(a) - Liquidity and Capital Resources, Rate Matters)
On August 27, 1996, New York State Electric & Gas
Corporation (company) issued the following news release regarding
the rate design for years two and three of the company's three-
year electric rate settlement agreement, which was approved by
the Public Service Commission of the State of New York on August
1, 1995.
NYSEG TO FILE PETITION FOR REHEARING ON
ELECTRIC RATE MATTER
FOR IMMEDIATE RELEASE
New York State Electric & Gas
Corporation (NYSEG) will challenge
yesterday's New York State Public Service
Commission (PSC) order which put on hold,
through December 30, 1996, plans for NYSEG to
increase electric rates this year and again
next year.
"It is difficult to understand the
reasons for the PSC delaying a rate increase
it approved only a year ago," said Jack H.
Roskoz, NYSEG's executive vice president.
"Plans for implementing the increase have
undergone extensive review since January, and
a final plan was issued for PSC action three
months ago. We fully expect the PSC to honor
commitments it made under the existing
agreement and to approve the second- and
third-year increases. We will file a petition
for rehearing on this matter and take
whatever additional action may be necessary
to ensure the terms of the agreement are
upheld."
Under the terms of the agreement
approved last year, NYSEG was to have
received a $45.3 million, or 2.8%, electric
rate increase on August 1, 1996, and a $45.5
million, or 2.7%, electric rate increase on
August 1, 1997. NYSEG received a $45.1
million, or 2.9%, electric rate increase on
August 1, 1995.
<PAGE>
The rate increases for years two and
three of the agreement are primarily to
cover:
- Increases in the cost of mandated
purchases of power from nonutility
generators.
- Increases in taxes.
- Past expenditures, made on behalf of
customers, that were not collected in
order to lessen previous rate increases.
The proposed rate design for years two
and three of the electric rate agreement
includes a price freeze for about 1,600
industrial and high load factor commercial
and public authority customers; an average
increase of 2.8% for most other
nonresidential customers; and an average
increase of 3.7% for residential customers,
mostly collected through an increase in the
basic monthly service charge.
The industrial price freeze, which is
intended to stimulate job growth in New York,
would cost residential customers about 50
cents a month.
<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 Sherwood J. Rafferty
Sherwood J. Rafferty
Senior Vice President and
Chief Financial Officer
Date: August 27, 1996
