FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: June, 1999
MAINE PUBLIC SERVICE COMPANY
(Exact name of registrant as
specified in its charter)
Maine 1-3429 01-0113635
(State, or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
209 State Street, Presque Isle, Maine 04769
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code 207-768-5811
Current Report, Form 8-K for Date of Report
Maine Public Service Company June, 1999
Item 5(a) Other Material Events - Sale of Generating Assets
Reference is made to the Company's Form 10-Q, item 3(b) for the
quarter ended March 31, 1999, in which the Company reported that the
Maine Public Utilities Commission (MPUC), on April 5, 1999,
approved the sale of the Company's generating assets to WPS Power
Development, Inc. (WPS-PDI). In addition, on April 14, 1999, the
Federal Energy Regulatory Commission (FERC) issued its Order
authorizing the sale of the Company's generating assets. On June 8,
1999, the Company completed the sale of its generating assets to
subsidiaries of WPS-PDI for the previously reported sale price
of $37.425 million. The generating sale consisted of hydro and
fossil generating plants with a total capacity of 91.8 megawatts.
The Company will continue to buy energy from these facilities under
power agreements with the new owners until March 1, 2000, when retail
access in Maine begins.
On June 9, 1999, the Company issued the following release:
"Maine Public Service Company Sells Generating Assets"
Presque Isle, Maine, June 9, 1999. On June 8, 1999, Maine Public
Service Company completed the sale of its generating assets, totaling
91.8 megawatts of capacity, to subsidiaries of WPS Power Development,
Inc. for $37.425 million. The sale, which was announced eleven
months ago, required approvals from the Maine Public Utilities
Commission, Federal Energy Regulatory Commission, the National Energy
Board of Canada, the Lieutenant-Governor in Council of New Brunswick
and various State, Federal and Canadian agencies. WPS-PDI is a
wholly-owned subsidiary of WPS Resources Corporation, with
headquarters in Green Bay, Wisconsin.
Facilities sold include: 34.5 MW of hydroelectric and diesel
generating units at the Canadian subsidiary, Maine & New Brunswick
Electrical Power Co., Ltd., (Tinker Plant), as well as its
transmission system and interconnection with NB Power; 31 MW of
hydroelectric, oil-fired steam, and diesel generating facilities at
the Caribou Generating Station; 1.4 MW at Squa Pan hydroelectric
generating station and storage dam; 4.2 MW at Flo's Inn diesel
generating station; a dismantled diesel unit at Houlton; the
Millinocket Lake storage dam; and the Company's joint ownership share
equivalent to 20.7 MW of Wyman Unit No. 4, an oil-fired plant in
Yarmouth, Maine.
The Company's 5% ownership share in Maine Yankee was not part of the
sale, because the plant has permanently shut down and is now
undergoing decommissioning. The rights to the 18.1 MW purchased
under an
-2-
Current Report, Form 8-K for Date of Report
Maine Public Service Company June, 1999
agreement with Wheelabrator-Sherman are not included in the final
sale. When retail access begins, MPS will auction the W-S
entitlement to a third party until 2006, when the agreement
with W-S expires. MPS has agreed to buy back electricity from
WPS-PDI at a set price to cover the period between the closing date
and February 29, 2000, when retail access begins.
"This Company's involvement in generation began in 1903, when our
Canadian Subsidiary, Maine and New Brunswick Electrical Power
Company, Limited, was formed to develop a hydroelectric facility
located at Aroostook Falls, New Brunswick." states Paul Cariani,
President and CEO of Maine Public Service Company. "Although we will
no longer be producing electricity, we will be providing our
customers with electricity under existing power contracts until March
1, 2000, when retail access begins in Maine. On March 1, 2000,
customers will choose their supplier of electricity, but we will
continue to provide their transmission and distribution services."
After paying $13.8 million (U.S.) in Canadian, Federal and State
income taxes, the remaining proceeds will be used to reduce the
Company's debt. "After the sale," Cariani stated, "our Company's
improved financial condition will allow us to meet the challenges of
deregulation. The gain from the sale of our generating assets will
also reduce stranded costs, therefore, reducing customer rates in the
future."
_________________________
This report contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. Such statements
are subject to certain risks and uncertainties that could cause
actual results to differ materially from those projected. Readers
are therefore urged not to place undue reliance on such
forward-looking statements. A number of factors that could cause
actual results to differ materially from those projected in this
report are listed in the Annual Report on Form 10-K of Maine Public
Service Company for the year ended December 31, 1998.
MAINE PUBLIC SERVICE COMPANY
Registrant
Dated: June 9, 1999 /s/ Larry E. LaPlante
Larry E. LaPlante, Vice President,
Treasurer and Chief Financial Officer
-3-