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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) November 29, 1993
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SOUTHWESTERN ENERGY COMPANY
(Exact name of registrant as specified in its charter)
Arkansas 1 - 8246 71-0205415
(State of incorporation (Commission (I.R.S. Employer
or organization) File Number) Identification No.)
1083 Sain Street, P.O. Box 1408, Fayetteville, Arkansas 72702-1408
(Address of principal executive offices, including zip code)
(501) 521-1141
(Registrant's telephone number, including area code)
No Change
(Former name, former address and former fiscal year; if changed
since last report)
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Item 5.
Other Events
On November 29, 1993, the Arkansas Public Service Commission
("Commission" or "APSC") issued an order in a three-year old gas
cost case involving purchases by the Registrant's utility
subsidiary, Arkansas Western Gas Company ("AWG"), under a contract
with one of the Registrant's gas producing subsidiaries. The order
was the result of a hearing conducted by the Commission in January,
1993. The order found AWG's purchases under the contract in
question to be in violation of Arkansas' so-called "least cost
purchasing" statute. The order found that the price paid by AWG to
its affiliate was too high, determined that purchases under the
contract should be indexed to an "appropriate market price", but
stated that "additional evidence is necessary in order to determine
the most equitable pricing methodology" and that "the parties
should provide testimony on any premium that should be attached to
the published price to reflect AWG's gas requirements." The
Commission scheduled a public hearing on these issues to begin on
January 18, 1994. A press release dated December 1, 1993, and
filed as Exhibit (1) per Item 7. of this report, is hereby
incorporated by reference for further details.
On December 21, 1993, a class action refund complaint was
filed against the Registrant's utility subsidiary, AWG, asking the
APSC to order AWG to refund amounts related to gas costs collected
from its customers since 1978. The claim purports to be a class
action, although no Arkansas law specifically authorizes the
pursuit of class action complaints before the APSC. The complaint
is based on the APSC's order discussed above. The complaint
requests that the Commission order AWG to refund its ratepayers and
customers at least $14 million per year since 1978 or $210 million
or the amount by which the rates charged have exceeded the amount
reasonably justified by the Rules of the APSC and the Statutes of
Arkansas. The complaint does not explain how the refund amount was
calculated and no refund amount can be calculated from the order
because the order made no finding as to the appropriate price. In
the order issued by the APSC, the Commission reiterated its
position that refunds were not at issue in this docket and that
AWG's gas purchasing practices, affiliate transactions, gas costs
and gas cost allocation practices were being addressed on a
prospective basis only.
The Registrant believes this is a frivolous lawsuit and will
promptly file a response to the claim and aggressively pursue its
dismissal. A press release dated December 6, 1993, and filed as
Exhibit (2) per Item 7. of this report, is hereby incorporated by
reference for further details.
Item 7.(c)
Exhibits Reference
(1) Press release dated December 1, 1993. p. 4-6
(2) Press release dated December 6, 1993. p. 7-8
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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, thereunto duly authorized.
SOUTHWESTERN ENERGY COMPANY
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Registrant
DATE: January 17, 1994 BY: /s/ GREGORY D. KERLEY
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Gregory D. Kerley
Vice President - Treasurer
and Secretary, and Chief
Accounting Officer
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