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 (Date of earliest event reported): May 20, 1998
-----------------
THE UNITED ILLUMINATING COMPANY
(Exact name of registrant as specified in its charter)
Connecticut 1-6788 06-0571640
- ----------------------------- ----------- -------------------
(State, or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
157 Church Street, New Haven, Connecticut 06506
- ----------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number,
Including Area Code (203) 499-2000
- ------------------------------ --------------
None
-------------------------------------------------------------
(Former name or former address, if changed since last report)
Item 5. Other Events.
In April 1998, Connecticut enacted legislation to restructure the
State's electric utility industry. The business of generating and supplying
electricity to consumers will be opened to competition and will be separated
from the business of delivering electricity to consumers, beginning in the year
2000. The business of delivering electricity will remain with the incumbent
franchised electric utility companies, including Registrant. The legislation
provides that each incumbent electric utility company, in order to recover its
costs associated with above-market long-term purchased power contract
obligations, generation-related regulatory assets and above-market investments
in generating plants, must sell all of its non-nuclear generation assets, or
submit all such assets to a public auction process pursuant to a divestiture
plan submitted to the Connecticut Department of Public Utility Control (DPUC) by
October 1, 1998 and approved by the DPUC. On May 20, 1998, Registrant announced
that it would commence the process of selling, through a two-stage bidding
process, all of its non-nuclear generation assets in compliance with this
statute. The assets offered for sale include Registrant's three fossil-fueled
generating stations located in Bridgeport and New Haven, Connecticut, two
long-term contracts for the purchase of power from cogeneration facilities
located in Bridgeport and Shelton, Connecticut, one long-term contract for the
purchase of power from a hydroelectric generating station located in Derby,
Connecticut, and Registrant's 5.45% participating share in the Hydro-Quebec
transmission intertie facility linking New England and Quebec, Canada. The
aggregate generating capability represented by these assets is approximately
1,308 megawatts; and the total book value of the three fossil-fueled generating
stations is approximately $220 million. In addition to the DPUC, the sale of
these assets must be approved by the Federal Energy Regulatory Commission, the
Federal Trade Commission, and the United States Department of Justice.
- 2 -
SIGNATURE
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.
THE UNITED ILLUMINATING COMPANY
Registrant
May 28, 1998 By /s/ Robert L. Fiscus
- --------------------------- ------------------------------------------
Robert L. Fiscus
Vice Chairman of the Board of Directors
and Chief Financial Officer
- 3 -