Effective February 17, 2005, the Company entered into a severance and consulting agreement (the “S&C Agreement”) with Senior Vice President, Corporate Development & Administration, Doris F. Galvin. Under the S&C Agreement, which amends her employment agreement with the Company (the “Employment Agreement”) in certain respects, Ms. Galvin will end her employment at the Company on April 1, 2005.
Ms. Galvin’s departure is a termination “without Cause” under the Employment Agreement, and, as a result, she will receive certain severance benefits. The principal severance item is payment of Ms. Galvin’s base salary for 1 year beginning April 1, 2005. Ms. Galvin also has agreed, among other things, to consult with the Company during her severance period with respect to matters on which she worked while she was employed by the Company.
Item 8.01 Rate Adjustment for Battle Creek (Michigan) Area Approved
On February 15, 2005, the City Commission of Battle Creek, Michigan (the “CCBC”), approved a rate settlement that (i) increases in the Company’s base rates in its Battle Creek service area, and (ii) institutes an index-based Gas Cost Rate (the “GCR”) to replace a fixed rate (or “frozen”) gas cost rate The base rate increases, which go into effect on April 1, 2005, and on April 1 of 2006 and 2007, are expected to generate $3.55 million, $3.7 million and $3.85 million in additional revenue for the Company, respectively, over the next three years. The GCR goes into effect on April 1, 2005. A copy of the press release announcing the CCBC action is attached hereto as Exhibit 99.2 and is incorporated herein in its entirety by reference.
Item 9.01(c) Exhibits.
| 99.1 | Severance and Consulting Agreement between the Company and Doris F. Galvin effective February 17, 2005. |
| 99.2 | Press Release issued February 17, 2005. |
