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 -- December 5, 1997
ROCHESTER GAS AND ELECTRIC CORPORATION
(Exact name of registrant as specified in charter)
New York
(State or other jurisdiction of incorporation)
1-672
(Commission File Number)
16-0612110
(IRS Employer Identification No.)
89 EAST AVENUE, ROCHESTER, NEW YORK 14649
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (716) 546-2700
ITEM 5. OTHER EVENTS
Competitive Opportunities Case Settlement Approval. By an Order issued
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November 26, 1997 (the "Order") in the "Competitive Opportunities Proceeding"
(see the Company's Form 10-Q for the quarterly period ended September 30, 1997,
Item 2, Management's Discussion and Analysis of Financial Condition and Results
of Operations under the heading "Competition - PSC Competitive Opportunities
Case Settlement") the New York State Public Service Commission ("PSC") approved,
with certain changes, the Amended and Restated Settlement Agreement dated
October 23, 1997 (the "Settlement"). The Company has accepted the changes made
pursuant to the Order and, on December 1, 1997, filed documents to implement the
provisions of the Settlement as modified.
The description of the Settlement in the Form 10-Q referenced above remains
accurate, except as modified by the discussion that follows.
Rate Plan. The overall rate reductions provided for in the Settlement are
modified to the extent of increasing the reduction in Rate Year 5 (the year
ending June 30, 2002) by $13.5 million, from $51.1 million to $64.6 million. In
addition, the special rate commencing July 1, 1999 for Incremental Manufacturing
Load is decreased from an average of $0.059 per kilowatt hour ("KWH") to an
average of $0.045 per KWH. This incentive rate only applies to incremental
load.
The Settlement provision that would have allocated up to $.8 million of
earnings in excess of an effective 11.50 percent return on common equity (as
determined over the entire five-year term of the Settlement) to reduce rates for
certain large industrial and commercial customer subclasses is eliminated.
Retail Access. The Settlement's timetable for implementation of full
retail access is moved up by one year but the earlier phase-in is not otherwise
modified. All retail customers will be eligible to purchase energy and capacity
from alternative suppliers as of July 1, 2001. In light of this change, a
provision that would have allowed acceleration of the retail access schedule if
certain conditions were met has been eliminated.
In contemplation of the PSC's potential resolution of issues addressed in
the August 1997 Staff Report on Nuclear Generation ("Staff Report") (see the
Company's Form 10-Q for the quarterly period ended September 30, 1997, Item 2,
Management's Discussion and Analysis of Financial Condition and Results of
Operations under the heading "Competition - PSC Position Paper on Nuclear
Generation") the portion of the Settlement stating that no change
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in the treatment of the Company's nuclear facilities would be implemented until
at least January 1, 2000, is changed to provide that no such change would be
implemented prior to the Commission's resolution pertaining to the Staff Report.
Corporate Structure. The provision of the Settlement authorizing the
Company to initially fund unregulated activities without further PSC approval is
modified to increase the authorized amount from $50 million to $100 million.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits: See Exhibit Index below.
EXHIBIT INDEX
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Exhibit No. Description
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None.
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SIGNATURES
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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 hereunto duly authorized.
ROCHESTER GAS AND ELECTRIC CORPORATION
(Registrant)
Date: December 5, 1997 By: /s/ J. B. Stokes
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J. Burt Stokes
Senior Vice President,
Corporate Services and
Chief Financial Officer
Date: December 5, 1997 By: /s/ William J. Reddy
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William J. Reddy
Controller
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