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) December 31, 1994
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Commission File Number 33-43508
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NORTH ATLANTIC ENERGY CORPORATION
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(Exact name of registrant as specified in its charter)
NEW HAMPSHIRE 06-1339460
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(State of 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 officers) (Zip Code)
(603) 669-4000
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(Registrant's telephone number, including area code)
Not Applicable
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(Former name of former address, if changed since last report)
Item 5. Other Events
1. Nuclear Operations
Overall capacity factors for the five nuclear power plants operated by
subsidiaries of Northeast Utilities in 1994 fell to 67.5%, compared to 80.8%
in 1993. A summary of these results follows:
1994 Actual 1994
Unit (Preliminary) Goal
Connecticut Yankee 75.4% 90.0%
Millstone Unit One 58.3% 72.1%
Millstone Unit Two 48.2% 72.9%
Millstone Unit Three 94.0% 87.3%
Seabrook 61.6% 74.7%
Five unit average 67.5% 79.4%
The lower 1994 composite capacity factor was primarily the result of
extended refueling and maintenance outages at Millstone Unit 1, Millstone
Unit 2 and Seabrook nuclear power plants.
On October 1, 1994, Millstone 2 began a planned refueling and
maintenance outage that was originally scheduled for 63 days. Millstone 2 is
100% owned by NU's subsidiaries The Connecticut Light and Power Company
(CL&P)and Western Massachusetts Electric Company (WMECO). The outage has
encountered several unexpected difficulties which have lengthened the
duration of the outage. The magnitude of the schedule impact is currently
under review, but the outage is presently expected to last through at least
early March. CL&P expects that replacement power costs in the range of $5
million per month will be attributable to the extension of the outage.
Recovery of these costs will be subject to scrutiny by the DPUC.
The Nuclear Regulatory Commission's (NRC) latest Systematic Assessment
of Licensee Performance (SALP) report for the Millstone Station, issued
August 26, 1994, noted significant weaknesses in Millstone 2's operations and
maintenance, in particular, but also observed that the unit had been operated
in a safe manner. In a recent public statement, a senior NRC official
expressed disappointment with the continued weaknesses in Millstone 2's
performance.
Management believes that the primary cause of the NRC's disappointment
with Millstone 2's performance is that, despite its recognition that there
has been significant management attention and action over a period of years,
the NRC does not believe it has seen enough objective evidence of improvement
in reducing procedural non-compliances and other human errors.
Management has acknowledged the basis for the NRC's concern with
Millstone 2 and has been devoting increased attention to resolving these
issues. If the NRC continues to have these or heightened concerns, CL&P and
WMECO could be required to expend additional monies to remedy such problems,
in amounts not now determinable but which could be significant.
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.
NORTH ATLANTIC ENERGY CORPORATION
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Registrant
Date January 10, 1995 By /s/ Bernard M. Fox
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Bernard M. Fox
Vice Chairman and Chief Executive
Officer, and Director