SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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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): March 10, 1997
NIAGARA MOHAWK POWER CORPORATION
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(Exact Name of Registrant as specified in its charter)
New York 1-2987 15-026555
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(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
300 Erie Boulevard West, Syracuse, NY 13202
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(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 315-474-1511
Not Applicable
(Former Name or Former Address,
if changed Since Last Report)
Item 5. Other Events
The Company announced on March 10, 1997 an agreement in principle to restructure
or terminate 44 power purchase contracts. The agreement in principle
contemplates that Niagara Mohawk would pay the counterparties to these contracts
approximately $3.6 billion in cash and/or debt securities and 46 million common
shares, representing approximately 25 percent of the anticipated fully diluted
common shares. In addition, Niagara Mohawk would enter into new agreements that
would further compensate these counterparties and hedge specified amounts of
power at specified prices (subject in certain cases to adjustment for changes in
gas or other indices). The contracts may be in the form of fixed financial and
physical agreements, options, indexed financial instruments, or a combination
thereof. Set forth below is a schedule of possible quantities and prices to be
reflected in such contracts.
HYDRO COAL AND WASTE** GAS**
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QUANTITY PRICE/ QUANTITY PRICE/ QUANTITY PRICE/
YEAR (GWH) MWH* (GWH) MWH (GWH) MWH
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1 875 $86 - $98 353 $ 28 4,630 $ 46
2 875 88 - 100 353 28 4,640 46
3 875 93 - 101 353 29 4,640 47
4 875 94 - 103 353 30 4,690 44
5 875 96 - 102 353 31 4,731 46
6 875 97 - 113 353 32 7,736 49
7 875 99 - 115 353 33 7,755 52
8 875 99 - 116 353 34 7,766 53
9 875 100 - 119 353 35 7,778 55
10 875 86 - 121 353 36 7,787 57
11 875 86 - 123 353 37 8,000 62
12 875 87 - 124 353 38 8,000 64
13 875 86 - 126 353 39 -- --
14 875 89 - 126 353 41 -- --
15 875 90 - 117 353 42 -- --
16 802 101 - 122 353 43 -- --
17 802 104 - 124 176 45 -- --
18 802 115 - 125 -- -- -- --
19 802 115 - 127 -- -- -- --
20 802 114 - 129 -- -- -- --
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* Prices subject to final negotiation.
** May be subject to adjustment in certain cases for changes in gas or other
indices.
A press release describing the terms of the agreement in concept (and various
conditions thereto) is filed as an exhibit hereto, and is incorporated hereto
by reference.
Item 7. Financial Statements and Exhibits
99.1 Press Release dated March 10, 1997.
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, hereto duly authorized.
NIAGARA MOHAWK POWER CORPORATION
By /s/ Steven W. Tasker
Name: Steven W. Tasker
Title: Vice President-Controller
Date: March 10, 1997
Exhibit Index
Exhibit No. Description
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99.1 Press Release dated March 10, 1997.