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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) July 9, 1997
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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 Wednesday, July 9, 1997, the Connecticut Department of
Public Utility Control (DPUC) issued its expected decision in
Docket No. 96-08-05, DPUC Financial and Operational Review of
Yankee Gas Services Company, the regulated gas utility subsidiary
of Yankee Energy System, Inc. The DPUC decision, which is not a
rate order, calls for a lowering of Yankee Gas' authorized Return
On Equity (ROE) from 12.43 percent (set in 1992) to 11.15
percent, citing "current economic conditions" as the reason for
the reduction.
The DPUC believed that lower current interest rates and recently
allowed rates of return for other Connecticut utilities justified
a lower ROE for Yankee Gas than that set in the 1992 rate case.
The decision does not call for any change in customer rates or
reductions in Yankee's revenues.
The decision offers Yankee Gas the option of making a proposal by
September 2, 1997, which would apply any revenues in excess of
the 11.15 percent ROE, which the DPUC estimates to be $3.2
million, to the amortization of regulatory assets or to
increasing plant investment. Yankee Gas management is currently
evaluating these alternatives, as well as other options, to
address this issue. If Yankee Gas does not choose to make a
proposal, the DPUC will initiate a full rate case proceeding.
The decision was issued after the DPUC completed its mandatory
financial and operations review of Yankee Gas as called for by
Conn. Gen. Stat. Section 16-19a. The statute requires the DPUC
to conduct a review of any major State utility company which has
not filed a full rate case for at least four years. Yankee Gas
last filed a rate case in 1992 and received the currently
authorized ROE of 12.43 percent.
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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: July 22, 1997 ---------------------------
Mary J. Healey
Vice President, General
Counsel and Secretary
