SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-1004
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) October 13, 1997
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Commission File Number 1-6392
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PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
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(Exact name of registrant as specified in its charter)
NEW HAMPSHIRE 02-018150
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1000 ELM STREET, MANCHESTER, NEW HAMPSHIRE 03105
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(Address of principal executive offices) (Zip Code)
(603) 669-4000
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name or former address, if changed since last report)
Item 5. Other Events
1. Millstone Restart Schedules
On October 27, 1997, Northeast Utilities (NU) issued the following press
release:
"HARTFORD, Connecticut, October 27, 1997--Northeast Utilities (NU) today
reported a loss of $51.7 million, or 40 cents a share, in the third quarter
of 1997, compared with a profit of $1.0 million, or 1 cent a share, for the
same period of 1996.
For the first nine months of 1997, NU lost $98.7 million, or 76 cents a
share, compared with a profit of $78.2 million, or 61 cents a share, for the
same period of 1996.
Michael G. Morris, NU chairman, president and chief executive officer,
attributed the weaker third-quarter results to the higher costs NU is
incurring as a result of the ongoing outages at the Millstone nuclear power
station in Waterford, Connecticut. Nonfuel operation and maintenance costs
were $446.4 million in the third quarter of 1997, compared with about $371.3
million in third quarter of 1996. The 1997 third-quarter results included a
$36 million net increase in reserves set aside to cover expenditures at
Millstone Station that will be made in future quarters to comply with Nuclear
Regulatory Commission standards.
NU hopes to return Millstone 3 to service in the first quarter of 1998;
Millstone 2 two to three months after Millstone 3; and Millstone 1 two to
three months after Millstone 2. None of the three units has generated power
since March 1996. Morris said that Millstone-related costs have risen over
the past several months as the company completes the engineering, physical
and programmatic efforts needed to return the units to service. As a result,
NU would expect to recognize a loss in the fourth quarter of 1997, prior to
any charges against reserves previously established for nuclear compliance
costs.
Offsetting some of those losses were higher revenues and lower
subsidiary preferred dividends. Revenues were $977.1 million in the third
quarter of 1997, compared with $955.5 million in the same period of 1996.
The higher revenues reflect a 1.0 percent increase in third-quarter 1997
retail sales, compared with the same period of 1996. For the first nine
months of 1997, retail sales were down 1.2 percent, compared with the same
period of 1996, primarily because of an unusually mild winter.
NU is the largest electric utility system in New England, with about 1.7
million customers in Connecticut, New Hampshire and Massachusetts."
For more information regarding this matter, see NU's Quarterly Reports on
Form 10-Q for the quarters ended March 31, 1997 and June 30, 1997 and "Item
1. Business-Overview of Nuclear and Related Financial Matters and -Nuclear
Generation" in NU's 1996 Form 10-K.
2. New Hampshire Rate Matters
On October 13, 1997, the New Hampshire Public Utilities Commission
(NHPUC) orally ordered a temporary rate reduction for Public Service Company
of New Hampshire (PSNH), a wholly owned subsidiary of NU, at a revenue level
6.43 percent lower than current rates. The temporary rates will be effective
December 1, 1997. The NHPUC also set an interim return on equity of 11
percent. A final decision in PSNH's permanent rate proceeding is not
expected to be issued until mid-1998.
All or a portion of this reduction may be offset or eliminated by an
increase to rates through the Fuel and Purchased Power Adjustment Clause due
to take effect December 1, 1997.
For more information regarding this matter, see NU's Current Reports on
Form 8-K dated March 19, 1997, June 26, 1997, September 2, 1997, Quarterly
Reports on Form 10-Q for the quarters ending March 31, 1997 and June 30, 1997
and "Item 1. Business-Rates-New Hampshire Retail Rates" in NU's 1996 Form
10-K.
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.
PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE
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Registrant
Date October 31, 1997 By /s/John B. Keane
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John B. Keane
Vice President and Treasurer