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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 (Date of earliest event reported) October 1, 1997
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YANKEE ENERGY SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
CONNECTICUT
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(State or Other Jurisdiction of Incorporation)
0-17605 06-1236430
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(Commission (IRS Employer
File Number) Identification No.)
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 former address, if changed since last report)
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Item 5. Other Events
On Wednesday, October 1, 1997, the Connecticut Department of
Public Utility Control (DPUC) issued its final decision in Docket
No. 96-08-05, DPUC Financial and Operational Review of Yankee Gas
Services Company (Yankee Gas), the regulated gas utility
subsidiary of Yankee Energy System, Inc. The DPUC decision
approves a one-time $3.2 million credit to consumers during
fiscal 1998, as proposed in a settlement by Yankee Gas and the
state Office of Consumer Counsel, and allows Yankee Gas to
maintain its base rates until the end of fiscal year 2000 (as a
result of this decision, Yankee Gas will have gone without an
increase in its base rates for an eight-year period). Reaching
this settlement was beneficial to Yankee Gas and the consumer
because failure to provide the DPUC with a proposal would have
resulted in a full rate case proceeding.
The DPUC decision comes in response to the July 9, 1997 DPUC
decision which recommended a reduced future allowed return on
equity for Yankee Gas. Using the newly reduced return on equity,
the DPUC estimated Yankee Gas would earn $3.2 million during
fiscal year 1998 over the previously authorized returns
established in Yankee's 1992 rate case. This decision will
result in a typical residential consumer receiving approximately
$27 in total credits on their natural gas bills covering the
period from November 1997 through March 1998.
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.
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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.
YANKEE ENERGY SYSTEM, INC.
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(Registrant)
Date: October 29, 1997 /s/ Mary J. Healey
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Mary J. Healey
Vice President, General
Counsel and Secretary
