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) October 13, 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. NU's Earnings For The Quarter Ending September 30, 1997;
Millstone Restart Schedules
On October 27, 1997, Northeast Utilities (NU) issued the following press
release:
"HARTFORD, Connecticut, October 27, 1997--Northeast Utilities (NU) today
reported a loss of $51.7 million, or 40 cents a share, in the third quarter
of 1997, compared with a profit of $1.0 million, or 1 cent a share, for the
same period of 1996.
For the first nine months of 1997, NU lost $98.7 million, or 76 cents a
share, compared with a profit of $78.2 million, or 61 cents a share, for the
same period of 1996.
Michael G. Morris, NU chairman, president and chief executive officer,
attributed the weaker third-quarter results to the higher costs NU is
incurring as a result of the ongoing outages at the Millstone nuclear power
station in Waterford, Connecticut. Nonfuel operation and maintenance costs
were $446.4 million in the third quarter of 1997, compared with about $371.3
million in third quarter of 1996. The 1997 third-quarter results included a
$36 million net increase in reserves set aside to cover expenditures at
Millstone Station that will be made in future quarters to comply with Nuclear
Regulatory Commission standards.
NU hopes to return Millstone 3 to service in the first quarter of 1998;
Millstone 2 two to three months after Millstone 3; and Millstone 1 two to
three months after Millstone 2. None of the three units has generated power
since March 1996. Morris said that Millstone-related costs have risen over
the past several months as the company completes the engineering, physical
and programmatic efforts needed to return the units to service. As a result,
NU would expect to recognize a loss in the fourth quarter of 1997, prior to
any charges against reserves previously established for nuclear compliance
costs.
Offsetting some of those losses were higher revenues and lower
subsidiary preferred dividends. Revenues were $977.1 million in the third
quarter of 1997, compared with $955.5 million in the same period of 1996.
The higher revenues reflect a 1.0 percent increase in third-quarter 1997
retail sales, compared with the same period of 1996. For the first nine
months of 1997, retail sales were down 1.2 percent, compared with the same
period of 1996, primarily because of an unusually mild winter.
NU is the largest electric utility system in New England, with about 1.7
million customers in Connecticut, New Hampshire and Massachusetts."
For more information regarding this matter, see NU's Quarterly Reports on
Form 10-Q for the quarters ended March 31, 1997 and June 30, 1997 and "Item
1. Business-Overview of Nuclear and Related Financial Matters and -Nuclear
Generation" in NU's 1996 Form 10-K.
2. Connecticut Rate Matters
Connecticut law requires the Connecticut Department of Public Utility
Control (DPUC) to review a utility's rates every four years if there has not
been a rate proceeding during such period. The DPUC has been conducting such
a review of the rates of The Connecticut Light and Power Company (CL&P), a
wholly owned subsidiary of NU, including an analysis of the possibility of
removing one or more of the Millstone nuclear units from CL&P's rate base.
At the October 23, 1997 hearing in this proceeding, CL&P announced that
it would not seek any replacement power costs from customers incurred during
the ongoing Millstone outages. Earlier this year, the DPUC had denied CL&P's
right to request recovery of such costs, and CL&P had appealed that decision.
CL&P is expensing such replacement power costs until the Millstone units
return to service.
For more information regarding this matter, see NU's Current Report on
Form 8-K dated June 26, 1997, Quarterly Reports on Form 10-Q for the quarters
ended March 31, 1997 and June 30, 1997 and "Item 1.
Business-Rates-Connecticut Retail Rates" in NU's 1996 Form 10-K.
3. New Hampshire Rate Matters
On October 13, 1997, the New Hampshire Public Utilities Commission
(NHPUC) orally ordered a temporary rate reduction for Public Service Company
of New Hampshire (PSNH), another wholly owned subsidiary of NU, at a revenue
level 6.43 percent lower than current rates. The temporary rates will be
effective December 1, 1997. The NHPUC also set an interim return on equity of
11 percent. A final decision in PSNH's permanent rate proceeding is not
expected to be issued until mid-1998.
All or a portion of this reduction may be offset or eliminated by an
increase to rates through the Fuel and Purchased Power Adjustment Clause due
to take effect December 1, 1997.
For more information regarding this matter, see NU's Current Reports on
Form 8-K dated March 19, 1997, June 26, 1997, September 2, 1997, Quarterly
Reports on Form 10-Q for the quarters ending March 31, 1997 and June 30, 1997
and "Item 1. Business-Rates-New Hampshire Retail Rates" 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 October 31, 1997 By /s/John B. Keane
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John B. Keane
Vice President and Treasurer
