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): November 17, 1998
Exact Name of
Commission Registrant as IRS Employer Registrants'
File Specified in its State of Identification Telephone
Number Charter Incorporation Number Number
- - ---------------------- ---------------------------- ------------- ------------------ -----------------
(Number Applied For) CMP Group, Inc. Maine 01-0519429 207 623-3521
1-5139 Central Maine Power Company Maine 01-0042740 207 623-3521
83 Edison Drive, Augusta, Maine 04336
(Address of principal executive offices) (zip code)
Item 1 through Item 4. Not applicable.
Item 5. Other Events.
FPL Group, Inc. ("FPL"), which had agreed on January 6, 1998, to purchase the
non-nuclear generation assets of Central Maine Power Company ("Central Maine")
and certain of its affiliates for approximately $846 million in cash, announced
on November 17, 1998, that it had filed a civil action with a federal court
(United States District Court for the Southern District of New York) requesting
a declaratory judgment that Central Maine cannot meet essential terms of the
January agreement. FPL said in a release that "it had concluded, based on recent
Federal Energy Regulatory Commission (FERC) rulings on transmission access, as
well as other issues, that it should not be bound to complete the transaction."
The FPL release further asserted that the FERC rulings will limit FPL's ability
to market its power "unconstrained by transmission limitations caused by new
power plants being added to the New England Power Pool (NEPOOL) system", and
that "without such priority access being assured, FPL Group would not have bid
for the assets." FPL requests in the court complaint that it be "excused without
further obligation or liability from effecting the purchase of [Central Maine's]
generating assets."
The FERC rulings, issued on October 28, 1998, directed NEPOOL to file a new
method for determining how it will address future transmission needs, and
associated costs, as the New England region seeks to accommodate changes in a
restructured utility industry.
CMP Group, Inc. ("CMP Group"), and Central Maine believe that the basic
positions asserted by FPL in the court action are without legal merit and intend
to contest the court action vigorously. CMP Group and Central Maine are
reviewing the complaint, but cannot predict the outcome of the court action or
whether, or the terms on which, the generation-asset sale transaction will be
completed.
Item 6 through Item 9. Not applicable.
Pursuant to the requirements of the Securities Exchange Act of 1934,
each Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CMP GROUP, INC.
By /s/ David E. Marsh____________
David E. Marsh
Chief Financial Officer
CENTRAL MAINE POWER COMPANY
By /s/ Curtis I. Call_______________
Curtis I. Call
Treasurer
Dated: November 17, 1998