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)
June 17, 2002
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Commission File Number 1-5324
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NORTHEAST UTILITIES
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(Exact name of registrant as specified in its charter)
MASSACHUSETTS 1-5324 04-2147929
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State or other jurisdiction of (Commission (I.R.S. Employer
organization) File No.) incorporation or
Identification No.)
174 BRUSH HILL AVENUE, WEST SPRINGFIELD, MASSACHUSETTS
01090-0010
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(Address of principal executive offices)
(Zip Code)
(Registrant's telephone number, including area code)
(413) 785-5871
(Former name or former address, if changed since last report)
Not Applicable
ITEM 5. OTHER EVENTS
On June 17, 2002, Northeast Utilities ("NU") issued the
following news release:
NU logo
"CL&P Criticizes DPUC Decision on Generation Rates:
NU Lowers Earnings Estimates
BERLIN, Connecticut, June 17, 2002 -- The Connecticut
Light & Power Company (CL&P), a wholly-owned subsidiary of
Northeast Utilities (NU), today criticized the decision made
by the Connecticut Department of Public Utility Control that
precludes an increase in the standard offer generation
service charge of customers' bills.
The decision also will affect the company's 2002
earnings estimates, previously forecast to be in the range
of $1.40 to $1.65 per share. NU said the higher range of
that estimate is unachievable in light of today's decision
and it will continue to evaluate the effect.
"We're extremely disappointed with the department's
decision. We feel they had ample evidence to make a
decision that would be in the best interest of electric
customers throughout the state," said Michael G. Morris, NU
chairman, president and chief executive officer.
"We can only hope that the current suppliers continue
to provide energy to CL&P so that we can continue to serve
our customers' needs," Morris added.
Select Energy, an unregulated subsidiary of NU,
currently supplies 50 percent of CL&P's standard offer
service requirements. As a result of the DPUC's decision,
NU anticipates that Select's earnings will continue to be
adversely impacted by this contract for the rest of the
standard offer period, which expires in December 2003.
In addition to Select, NRG Power Marketing Inc. (NRG)
supplies 40 percent of the standard offer contract and Duke
Energy Trading and Marketing supplies 10 percent. NRG had
formally requested that CL&P move to re-open the standard
offer docket to "restore the original intention of the
standard offer agreement to foster a competitive electric
marketplace."
CL&P had filed an application late last year seeking to
increase the generation service charge by one cent per
kilowatt hour to protect its ability to continue delivering
energy to its customers and to spur retail competition. The
department ruled in December that there was no statutory
basis for modifying the standard offer. The DPUC
subsequently opened an investigation into the viability of
power supply contracts for both CL&P and The United
Illuminating Company. Today's decision finds that there was
no legal or factual basis to commence further proceedings
regarding the standard offer.
Market prices for electricity remain substantially
higher than the current generation charge, resulting in a
lack of retail competitive suppliers seeking to do business
in the state. If NRG, or another supplier, was unable to
maintain its level of service, CL&P could be forced to buy
electricity on the open market to meet customer demand.
Under the restructuring law, CL&P could recover these
unknown costs from its customers.
CL&P's proposal would have increased the average
standard offer rate from 4.9 cents per kilowatt hour to 5.9
cents per kilowatt hour. For the average residential
customer using 500 kWh per month, this would have meant an
additional cost of $5.00 per month. The filing also
included a proposal to create a mechanism that would have
provided customers with adjustments if future market prices
change.
NU is New England's largest utility system with nearly
1.8 million electric customers in Connecticut, New Hampshire
and Massachusetts, 191,000 natural gas customers, and one of
the region's largest energy marketing businesses.
This press release includes forward-looking statements
within the meaning of the Private Securities Litigation
Reform Act of 1995, which are statements of future
expectations and not facts. Actual results or developments
might differ materially from those included in the forward-
looking statements because of factors such as competition
and industry restructuring, changes in economic conditions,
changes in historical weather patterns, changes in laws,
regulations or regulatory policies, developments in legal or
public policy doctrines, technological developments and
other presently unknown or unforeseen factors. Other risk
factors are detailed from time to time in NU's reports to
the Securities and Exchange Commission."
Reference is made to NU's and CL&P's Annual Report on
Form 10-K for the year ended December 31, 2001 and Quarterly
Report on Form 10-Q for the quarter ended March 31, 2002 for more
information.
SIGNATURE
Pursuant to the requirements of the Securities and
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
NORTHEAST UTILITIES
(registrant)
/s/ Gregory B. Butler
Name: Gregory B. Butler
Title: Vice President,
Secretary and
General Counsel
Date: June 17, 2002