SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
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) March 19, 1997
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Commission File Number 1-5324
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NORTHEAST UTILITIES
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(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-2147929
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
174 BRUSH HILL AVENUE, WEST SPRINGFIELD, MASSACHUSETTS 01090-0010
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(Address of principal executive offices) (Zip Code)
(413) 785-5871
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events
1. Dividend Suspension
On March 25, 1997, the Board of Trustees of Northeast Utilities (NU)
adopted a resolution suspending the quarterly dividends on NU s common shares
indefinitely, beginning with the dividend that would have otherwise been
payable for the quarter ending June 30, 1997. This action will not affect the
payment of the dividend due on March 31, 1997.
This action was taken primarily in light of the extended outages at
Millstone Station and the adverse restructuring order of the New Hampshire
Public Utilities Commission. Suspension of the dividend will enable NU to
conserve approximately $130 million on an annual basis.
2. Charter Oak Energy, Inc.
On March 25, the NU Board of Trustees also approved the offering for
sale of Charter Oak Energy, Inc. (COE). COE develops and invests in domestic
and international private power projects and currently has interests in five
operating projects. NU had a net investment in COE of approximately $69.5
million as of December 31, 1996. COE no longer fits with NU s core business
strategy of being of being a leading energy and energy services provider in
the Northeastern United States. NU hopes to complete a sale by late 1997.
3. New Hampshire Public Utilities Commission (NHPUC) Restructuring Plan
On March 19, 1997, the NHPUC issued a stay of its February 28, 1997
restructuring orders (Restructuring Orders) pending conclusion of rehearing
on the Restructuring Orders. The NHPUC s stay is identical in scope and
wording to the temporary restraining order issued by the United States
District Court for Rhode Island (Federal District Court) on March 10, 1997.
The March 10, 1997 order stayed the Restructuring Orders to the extent, and
only to the extent, those orders established a rate-setting methodology that
is not designed to recover Public Service Company of New Hampshire's (PSNH)
costs of providing service and would require PSNH to write off any regulatory
asset under applicable accounting standards.
On March 20 and 21, 1997, the Federal District Court held hearings on
PSNH s and affiliates action concerning the Restructuring Orders. The
Federal District Court heard evidence concerning whether the case was ready
to be decided by a court and whether the Federal court system was the correct
forum. After testimony, the Federal District Court took these questions
under advisement. The Federal District Court also issued an Amended
Restraining Order staying the applicability of the Restructuring Orders in
their entirety as to PSNH until further order of the Court.
On March 24, 1997, the NHPUC held a procedural hearing in this matter
and broadened its reconsideration to include matters relating to the
relationship between PSNH s Rate Agreement and potential events of default
specified in PSNH s and North Atlantic Energy Corporation s credit
agreements. A procedural schedule is expected to be issued on March 31.
For further information on New Hampshire restructuring issues, see "Item
1. Business-Competition and Cost Recovery and Rates-New Hampshire Retail
Rates" in the Registrant s 1996 Form 10-K.
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 hereunto duly authorized.
NORTHEAST UTILITIES
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Registrant
Date March 27, 1997 By /s/John B.Keane
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John B. Keane
Vice President and Treasurer
