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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report(Date of earliest event reported)September 27, 1995
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YANKEE ENERGY SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
Connecticut 0-17605 06-1236430
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
599 Research Parkway, Meriden, Connecticut, 06450-1030
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203)639-4000
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n/a
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(Former name or address, if changed since last report)
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ITEM 5 - Other Events
On June 27, 1995, the Board of Directors of Yankee Energy
System, Inc. (the "Company") approved a voluntary early
retirement program for the employees of the Company's wholly-
owned subsidiary, Yankee Gas Services Company ("Yankee Gas").
The program was offered to Yankee Gas employees at least 55 years
of age and with a minimum of ten years of service. The program
included a social security bridge payment, added three years of
age and three years of service for each employee for purposes of
calculating retirement benefits and provided a cash incentive of
two percent of the employee's current salary per year of service,
up to a maximum of 18 years. Eligible employees were given until
August 25, 1995 to elect to participate in the program, and a
total of 34 employees retired early pursuant to the terms of the
program.
At its June 27, 1995 meeting, the Company's Board of
Directors also authorized the implementation of an involuntary
severance program following the voluntary early retirement
program in order to further the accomplishment of the Company's
reorganization objectives to improve operation efficiency,
contain costs, increase sales effectiveness and improve customer
service. On September 27, 1995, the Company effected a workforce
reduction of 39 salaried and clerical employees. Affected
employees will receive salary, health plan and life insurance
benefits continued for a period of time equal to one week for
every full year of service. Affected employees will also receive
out-placement counseling.
As a result of the programs, the Company will record a net
pre-tax charge against earnings of approximately $3,425,000 in
the fourth quarter of its fiscal year which ends September 30,
1995. The charge consists of approximately $3,100,000 in
additional expense in connection with the voluntary early
retirement program and approximately $325,000 in additional
expense in connection with the severance program. On an after-
tax basis, the impact of both programs will result in a decrease
in fourth quarter and fiscal year earnings of approximately
$1,976,000 or $0.19 per share. The Company estimates that the
annual payroll and benefits savings resulting from the workforce
reduction programs will total $3,900,000 on a pre-tax basis.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
YANKEE ENERGY SYSTEM, INC.
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(Registrant)
/s/ Mary J. Healey
Date: October 4, 1995 ---------------------------
Mary J. Healey
Vice President, General
Counsel and Secretary
