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) June 26, 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. Nuclear Matters - Nuclear Training Programs
On June 27, 1997, nuclear management of Northeast Utilities (NU)
temporarily suspended all nuclear training programs at Millstone to address
programmatic deficiencies identified by Northeast Nuclear Energy Company
(NNECO)and Nuclear Regulatory Commission (NRC) inspectors during reviews of
the System's licensed operator training programs at the System's four
Connecticut nuclear units. The decision to suspend the nuclear training
programs was primarily based on a determination that there is insufficient
feedback between work functions and training so as to ensure training
programs are appropriately refined to reflect such items as changing needs
and experience.
Management has not yet determined when the various training programs
will be fully operational, but is currently developing a list of priorities
for programs to get back on line. Management does not believe at this time
that the suspension will affect the System's schedule to restart the
Millstone nuclear units. Management continues to proceed with its current
work towards restart and announced on June 30, 1997 that Millstone 2 was
ready to begin the Independent Corrective Action Verification Program
(ICAVP), as scheduled, and requested that the NRC identify the particular
systems to be reviewed by the Millstone 2 ICAVP contractor. The ICAVP
contractor for Millstone 3 began its inspections on May 27, 1997, also as
scheduled.
The three Millstone units are located in Waterford, Connecticut.
Millstone 1, 2 and 3 have been out of service since November 4, 1995,
February 21, 1996 and March 30, 1996, respectively.
For additional information regarding nuclear performance matters and
nuclear regulatory requirements, see NU's Form 10-Q for the quarter ended
March 31, 1997 and "Item 1. Business - Electric Operations - Nuclear
Generation" in NU's 1996 Form 10-K.
2. Connecticut Rate Matters
Prudence Investigation
In response to motions filed by various intervenors, the Connecticut
Department of Public Utility Control (DPUC) on June 27, 1997 orally granted
summary judgment in The Connecticut Light and Power Company's (CL&P) prudence
docket, disallowing recovery of costs associated with the ongoing outages at
Millstone. CL&P has projected that the total costs for the Millstone
outages, including replacement power, operation and maintenance and capacity
reliability projects, will be about $990 million.
CL&P had not requested cost recovery and had said that it did not expect
to seek recovery for a substantial portion of these costs and did not intend
to request any cost recovery until the units had returned to operation. Any
requests for recovery would include only costs for projects CL&P would have
undertaken under normal operating conditions or that provide long-term value
for CL&P customers. The DPUC did leave open the possibility for CL&P in a
future rate case to seek recovery of up to $40 million of capital costs
associated with capacity reliability projects. CL&P currently expects to
appeal the decision to the Connecticut Superior Court. CL&P does not expect
this decision to have a material financial impact on 1997 results.
Continued Unit Operation Studies
On July 1, 1997, CL&P submitted continued unit operation studies to the
DPUC showing that, under base case assumptions, Millstone 1 will have a value
to System customers (as compared to the cost of shutting down the unit and
incurring replacement power costs) of approximately $70 million during the
remaining thirteen years of its operating license and Millstone 2 will have a
value to System customers (on the same assumptions as used with Millstone 1)
of approximately $500 million during the remaining eighteen years of its
operating license. These studies had been previously requested by the DPUC.
For additional information regarding these matters, see NU's Form 10-Q
for the quarter ended March 31, 1997 and "Item 1. Business - Rates -
Connecticut Retail Rates" in NU's 1996 Form 10-K.
3. Elimination of the Sinking Fund under the CL&P Indenture
With the issuance of CL&P's 1997 Series B First and Refunding Mortgage
Bonds on June 26, 1997, the 1% annual sinking fund provided for in CL&P's
Indenture Mortgage and Deed of Trust dated as of May 1, 1921, as amended, was
eliminated under the provisions of the Sixty-Seventh Supplemental Indenture,
dated as of June 1, 1997.
4. New Hampshire Rate Matters
On June 30, 1997, the court-appointed mediator in the industry
restructuring dispute between the State of New Hampshire and PSNH and NU,
filed a letter report with the U. S. District Court in Rhode Island, stating
"it is my professional judgment that the mediation is progressing toward a
resolution and should continue." Under the court's original order
establishing the mediation, this report extends the mediation to August 4,
1997.
For additional information regarding this matter, see NU's Form 10-Q for
the quarter ended March 31, 1997 and "Item 1. Business - Rates - New
Hampshire Retail Rates" in NU's 1996 Form 10-K.
5. Seabrook Return to Service
On June 28, 1997, the Seabrook nuclear unit in New Hampshire returned to
service following a 50-day planned refueling and maintenance outage.
6. Rocky River Realty Company
On July 1, 1997, NU's Connecticut real estate affiliate, Rocky River
Realty Company (RRR), received a commitment for the purchase of approximately
$11.8 million of notes that RRR was required to repurchase from the current
holders as a result of a trigger event set forth in the original note
agreement. RRR intends to repurchase the remaining $26 million of notes on
July 14, 1997. Management does not expect the resolution of this matter to
have a material adverse impact on its financial condition or liquidity.
For additional information regarding this matter, see NU's Form 10-Q for
the quarter ended March 31, 1997 and "Item 1. Business - Financing Program -
Financing Limitations" in NU'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 July 2, 1997 By /s/John B. Keane
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John B. Keane
Vice President and Treasurer
