1
February 24, 1994
Securities and Exchange Commission
Washington, D.C. 20549
Gentlemen:
We are filing a copy of the report of Niagara Mohawk Power
Corporation on Form 8-K dated February 24, 1994.
We have also filed this report with the New York State Stock
Exchange.
Very truly yours,
Steven W. Tasker
Vice President -
Controller
SWT:gms
8-K-cvr.edg
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
DATE OF REPORT - FEBRUARY 24, 1994
NIAGARA MOHAWK POWER CORPORATION
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(Exact name of registrant as specified in its charter)
State of New York 15-0265555
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Commission file Number 1-2987
300 Erie Boulevard West Syracuse, New York 13202
(Address of principal executive offices) (zip code)
(315) 474-1511
Registrant's telephone number, including area code
Item 5. Other Events
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On February 23, 1994, Standard & Poors (S&P) announced that
they were lowering their ratings on Company securities. These
revised S&P ratings are now as follows: senior secured debt
(including First Mortgage Bonds) to BBB- from BBB, senior unsecured
debt and preferred stock to BB+ from BBB- and commercial paper to
A-3 from A-2. In addition, S&P announced that the ratings outlook
for the Company would continue to be negative.
A number of factors reflecting "prospects for insufficient
financial improvement" were considered in S&P's decision to
downgrade, including large and increasing purchased power costs
required to be paid to unregulated generators, weak sales growth
prospects because of the sluggish economy in the Company's service
territory and the potential for modest revenue losses resulting
from discounted rates to larger customers who may otherwise bypass
the Company's electric system for other suppliers.
S&P noted that the Company has taken steps to control
operating expenses and limit exposure to unregulated generator
costs and to otherwise improve revenues. They expressed concern,
however, as to whether the Company could, among other things,
continue to contain costs and sustain its strong nuclear
performance level achieved in 1993.
Moody's Investors Service has indicated that they will be
maintaining their current ratings on all existing debt and will
extend such rating to the upcoming debt offering.
SIGNATURE
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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.
NIAGARA MOHAWK POWER CORPORATION
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(Registrant)
Date: February 24, 1994 By /s/Steven W. Tasker
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Steven W. Tasker
Vice President-Controller and
Principal Accounting Officer