SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report: March 24, 1999
The Providence Gas Company
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(Exact name of registrant as specified in its charter)
Rhode Island 0 - 1160 05-0203650
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(State of incorporation (Commission (IRS Employer
or organization) File Number) Identification No.)
100 Weybosset Street, Providence, Rhode Island 02903
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (401) 272-5040
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N/A
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(Former name or former address, if changed since last report)
The Providence Gas Company (the "Company") and its representatives may,
from time to time, make written or oral statements, including statements
contained in the Company's filings with the Securities and Exchange Commission
and in its annual report to shareholders, including its Form 10-K for the fiscal
year ended September 30, 1998, which constitute or contain "forward-looking"
information as that term is defined in the private Securities Litigation Reform
Act of 1995.
All statements other than the financial statements and other statements of
historical facts included in this Form 8-K regarding the Company's financial
position and strategic initiatives and addressing industry developments are
forward-looking statements. Where, in any forward-looking statement, the Company
or its management, expresses an expectation or belief as to future results, such
expectation or belief is expressed in good faith and believed to have a
reasonable basis, but there can be no assurance that the statement of
expectation or belief will result or be achieved or accomplished. Factors which
could cause actual results to differ materially from those stated in the
forward-looking statements may include, but are not limited to, general and
specific economic, financial and business conditions; federal and state
regulatory, legislative and judicial developments which affect the Company or
significant groups of its customers; the impact of competition on the Company's
revenues; fluctuations in weather from normal levels; changes in development and
operating costs; the availability and cost of natural gas; the availability and
terms of capital; exposure to environmental liabilities; the costs and effects
of unanticipated legal proceedings; the successful implementation and
achievement of internal performance goals; the impact of unusual items resulting
from ongoing evaluations of business strategies and asset valuations; and
changes in business strategy.
Item 5. Other events.
The Providence Gas Company ("ProvGas") and the Rhode Island Division of
Public Utilities and Carriers (the "Division") have reached agreement for
recovery of exogenous changes which allows ProvGas to recover $2.45 million.
Currently, the Rhode Island Public Utilities Commission is reviewing the
exogenous change agreement to ensure consistency with the terms of Energize RI.
ProvGas sought recovery for two exogenous changes that significantly decreased
revenues: (1) severe warmer-than-normal temperatures; and (2) significantly
lower-than-expected non-firm margins. The impact of warmer-than-normal in FY98
was $4.0 million. Further, the level of relative market pricing of natural gas
versus alternative fuels, primarily oil prices, resulted in a non-firm margin
shortfall of $1.6 million in FY98.
ProvGas, a subsidiary of Providence Energy Corporation, is Rhode Island's
largest natural gas distribution company, serving more than 160,000 homes and
businesses in 25 Rhode Island cities and towns.
SIGNATURES
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.
THE PROVIDENCE GAS COMPANY
By: /s/ James H. Dodge
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Chairman, President and
Chief Executive Officer
Date: March 24, 1999
