Connecticut Light & Power Co – ‘8-K’ for 6/28/96

As of:  Wednesday, 7/3/96   ·   For:  6/28/96   ·   Accession #:  23426-96-21   ·   File #:  1-11419

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Form 8-K for the Connecticut Light & Power Company     3±    15K 


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 28, 1996        
                                           -----------------

Commission File Number 0-404        
               -----

THE CONNECTICUT LIGHT AND POWER COMPANY         
---------------------------------------         
(Exact name of registrant as specified in its charter)      

CONNECTICUT                      06-0303850       
-----------                      ----------       

(State or other jurisdiction of          (I.R.S. Employer             
incorporation or organization)         Identification No.)          

SELDEN STREET, BERLIN, CONNECTICUT             06037-1616       
-------------------------------------------------------------         
(Address of principal executive officers)         (Zip Code)          

(203) 665-5000          
--------------          
(Registrant's telephone number, including area code)          

Not Applicable          
--------------          
(Former name of former address, if changed since last report)           
Item 5.  Other Events                                                           

1.  Nuclear Operations                                                          

 Millstone Unit 1, a 660-MW boiling water reactor, and Millstone Unit 2,
an 870-MW pressurized water reactor, are each owned 81 percent by The           
Connecticut Light and Power Company ("CL&P") and 19 percent by Western          
Massachusetts Electric Company ("WMECO").  Millstone Unit 3, a 1154-MW          
pressurized water reactor, is jointly owned by CL&P (52.93 percent), WMECO      
(12.24 percent), Public Service Company of New Hampshire ("PSNH") (2.85         
percent) and other New England utilities.  CL&P, WMECO and PSNH are             
subsidiaries of Northeast Utilities ("NU").                                     

The three Millstone units are located in Waterford, Connecticut.      
Millstone Units 1, 2 and 3 have been out of service since November 4, 1995,     
February 21, 1996 and March 30, 1996, respectively.                             

On January 31, 1996, the Nuclear Regulatory Commission ("NRC") placed 
Millstone station on its "watch list" as a Category 2 facility.  Facilities     
in this category have been identified by the NRC as having weaknesses that      
warrant increased NRC attention until the licensee demonstrates a period of     
improved performance, but do not necessarily require formal NRC approval by     
vote to restart once shut down.  In a letter dated June 28, 1996, the NRC       
informed Northeast Utilities Service Company ("NUSCO"), an NU subsidiary,       
that Millstone station had been reclassified to a Category 3 facility.  The     
NRC deems Category 3 plants as having significant weaknesses that warrant       
maintaining the plant in shutdown condition until it is demonstrated that       
adequate programs have been established and implemented to ensure substantial   
improvement.  The NRC's letter also informed NUSCO that this designation        
would require the NRC staff to obtain NRC approval by vote prior to restart.    

Beginning in December 1995, the NRC issued a series of letters seeking
assurances the Millstone units would be operated in accordance with the terms   
of their operating licenses, their Updated Final Safety Analysis Reports and    
all NRC regulations (the "50.54(f) letters") before it would allow restart of   
the Millstone Units.                                                            

On July 2, 1996, NUSCO filed an 800-page document with the NRC        
responding to the NRC's 50.54(f) letter concerning Millstone 3.  The filing     
is frank and self-critical. NUSCO takes responsibility for past management      
weaknesses and commits to a comprehensive plan to restore nuclear excellence.   
The response outlines a revised corrective action program for Millstone         
station in response to criticism of this program contained in a June 6 letter   
from the NRC.  The July 2 filing identifies approximately 1,200 design and      
configuration discrepancies at Millstone 3, about half of which management      
presently expects will have to be resolved before the unit can be returned to   
service.  Some of these have already been resolved.  Management believes most   
of the remaining items can be resolved with additional inspections,             
documentation changes or additional analysis, but a small number will require   
hardware modifications.                                                         

 Management anticipates resolving the remaining pre-start items over the
course of the summer and does not expect that this work will materially         
increase the $40 million previously estimated as the direct costs associated    
with the NRC reviews.                                                           

Management cannot predict at this time the results of the NRC's review
of the Millstone Unit 3 documentation, how long it will take Management to      
demonstrate the effectiveness of the corrective action program to the NRC or    
when the NRC will ultimately allow any of the Millstone units to return to      
service.                                                                        
 For further information, see "Electric Operations - Nuclear Operations"
in NU's, CL&P's, WMECO's and PSNH's 1995 Form 10-K, Form 8-K dated March 30,    
1996 and Form 10-Q for the quarterly period ended March 31, 1996; NU's and      
PSNH's Form 8-K dated June 3, 1996; CL&P's and WMECO's Form 8-K dated June 6,   
1996; and NU's and CL&P's Form 8-K dated June 18, 1996.                         

2.   Rate Settlement                                                            

On July 1, 1996, the Connecticut Department of Public Utility Control 
("DPUC") approved a modified settlement agreement (the "Modified Settlement")   
that had been jointly submitted on June 25, 1996 to the DPUC by The             
Connecticut Light and Power Company ("CL&P"), the Office of Consumer Counsel    
("OCC") and the independent Prosecutorial Division ("PRO") of the DPUC.  The    
Modified Settlement responds to the DPUC's June 18, 1996 draft decision         
("Draft") rejecting without prejudice the original settlement agreement         
("Settlement") submitted by CL&P, OCC and PRO on April 15, 1996.  For           
complete descriptions of the Settlement and the Draft, see Item 5 in            
Northeast Utilities' and CL&P's April 15, 1996 and June 18, 1996 Form 8-Ks,     
respectively.                                                                   

The Modified Settlement is based on the second of two renegotiation   
scenarios proposed in the DPUC's Draft as acceptable modifications to the       
Settlement.  Base rate increases and potential total bill increases that had    
caused the Draft's rejection of the Settlement were avoided by eliminating a    
proposed $73 million annual increase in base rate levels as a result of a       
fossil fuel fold-in.  In order to offset a portion of that change, the          
Modified Settlement allows CL&P to retain $36 million of Generation             
Utilization Adjustment Clause ("GUAC") revenues that would have been foregone   
under the Settlement.  Collection of that $36 million will be extended over     
the full 18-month settlement period rather than during the eight months ended   
February 1997 as would have occurred in the absence of any settlement.          

The projected earnings impact of the Modified Settlement is not       
substantially different for 1996 and 1997 than the effects of the Settlement,   
as originally proposed.  CL&P's cash flows under the Modified Settlement are    
reduced by $24 million in 1996 and $49 million in 1997, as compared with the    
original Settlement.                                                            

Finally, the Modified Settlement results in an accelerated recovery of
CL&P's regulatory assets of between $127-175 million during 1996 and 1997, as   
compared to the $200-240 million acceleration of such asset in the original     
Settlement.  These amounts are in addition to the regulatory assets CL&P was    
already amortizing annually through rates.                                      

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.                                           

           THE CONNECTICUT LIGHT AND POWER COMPANY
           ---------------------------------------
          Registrant

Date  July 3, 1996             By   /s/ John B. Keane                           
------------------            ------------------------------------    
   John B. Keane
                  Vice President and Treasurer

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘8-K’ Filing		Date		Other Filings
Filed on:		7/3/96
		7/2/96
		7/1/96
For Period End:		6/28/96
		6/25/96
		6/18/96		8-K
		6/6/96		8-K
		6/3/96
		4/15/96		8-K
		3/31/96		10-Q
		3/30/96		8-K
		2/21/96
		1/31/96		8-K
		11/4/95
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