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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)January 3, 1996
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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 January 3, 1996, the Department of Public Utility Control
("DPUC"), in Docket No. 92-02-19 Application of Yankee Gas
Services company for an Increase in Rates - Reopen II, approved a
joint stipulation between Yankee Energy System, Inc.'s regulated
natural gas distribution subsidiary, Yankee Gas Services Company
("Yankee Gas"), and the Office of Consumer Counsel ("OCC") which
allows for the recovery of certain deferred expense items in
exchange for Yankee Gas agreeing not to increase its rates before
October 1, 1998.
The stipulation and agreement are effective as of September
30, 1995 and shall continue through September 30, 1998, after
which it shall expire. During the term of the agreement:
Yankee Gas may apply transition credits from pipeline
refunds, interruptible excess margin, deferred gas costs,
capacity release and off system sales to eliminate or reduce
certain expenses, which received deferred accounting
treatment in prior DPUC Decisions. These transition credits
to be applied against the deferred expenses shall be
provided by the mechanism established by the DPUC to pay the
transition costs resulting from the implementation of
Federal Energy Regulatory Commission Order No. 636.
Yankee Gas' rates will not be increased prior to September
29, 1998 unless:
Yankee Gas' actual return on average equity is less than
10.5% in any fiscal year during the term in this agreement,
as demonstrated by Yankee Gas' monthly return on average
equity filing with the DPUC for September of such year, in
which case Yankee Gas will have the option of (i) applying
to the DPUC for a rate increase or (ii) retaining up to 80%
of any Off-System Sales Margin and Excess Interruptible
Margin as may be necessary to bring it rate on average
equity for such year up to 10.5%.<PAGE>
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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: January 24, 1996 ---------------------------
Mary J. Healey
Vice President, General
Counsel and Secretary
