[Federal Register Volume 62, Number 227 (Tuesday, November 25, 1997)]
[Notices]
[Pages 62791-62793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-30861]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-26781]
Filings Under the Public Utility Holding Company Act of 1935, as
Amended (``Act'')
November 18, 1997.
Notice is hereby given that the following filing(s) has/have been
made with the Commission pursuant to provisions of the Act and rules
promulgated thereunder. All interested persons are referred to the
application(s) and/or declaration(s) for complete statements of the
proposed transaction(s) summarized below. The application(s) and/or
declaration(s) and any amendments thereto is/are available for public
inspection through the Commission's Office of Public Reference.
Interested persons wishing to comment or request a hearing on the
application(s) and/or declaration(s) should submit their views in
writing by December 12, 1997, to the Secretary, Securities and Exchange
Commission, Washington, D.C. 20549, and serve a copy on the relevant
applicant(s) and/or declarant(s) at the address(es) specified below.
Proof of service (by affidavit or, in case of an attorney at law, by
certificate) should be filed with the request. Any request for hearing
shall identify specifically the issues of fact or law that are
disputed. A person who so requests will be notified of any hearing, if
ordered, and will receive a copy of any notice or order issued in the
matter. After said date, the application(s) and/or declaration(s), as
filed or as amended, may be granted and/or permitted to become
effective.
Eastern Utilities Associates (70-6583)
Eastern Utilities Associates (``EUA''), P.O. Box 2333, Boston,
Massachusetts 02107, a registered holding company, has filed a post-
effective amendment to its application-declaration filed under Sections
6(a) and 7 of the Act and rule 54 under the Act.
EUA is currently authorized under an order of the Commission dated
December 19, 1994 (HCAR No. 26193) (``Prior Order'') to sell up to 6.8
million of its authorized common shares under its Dividend Reinvestment
and Common Share Purchase Plan (``Plan'') through December 31, 1997.
Under the Prior Order, EUA is authorized to issue these shares or to
purchase them on the open market. As of November 1, 1997, EUA has sold
6,042,088 of its authorized common shares under the Plan.
EUA now proposes to extend its authority to sell the remaining
757,912 shares of its common stock under the Plan through December 31,
2000. In addition, EUA proposes to sell up to one million additional
shares of its common stock under the Plan from time to time through
December 31, 2000. EUA will either issue the shares of its common stock
it sells under the Plan or purchase them on the open market.
EUA will use the proceeds from the sale of common shares under the
Plan for investment in its subsidiaries, payment of its indebtedness
and/or for its general corporate purposes.
Consolidated Natural Gas Company, et al. (70-8621)
Consolidated Natural Gas Company (``Consolidated''), CNG Tower,
Pittsburgh, Pennsylvania 15222-3199, a registered holding company, and
its wholly owned nonutility subsidiary, CNG Energy Services Corporation
(``Energy Services''), One Park Ridge Center, Pittsburgh, Pennsylvania
15244-
[[Page 62792]]
0746, have filed a post-effective amendment to an application-
declaration under sections 6(a), 7, 9(a), 10, 12(b) and 13(b) of the
Act and rules 45, 54, 83-91 thereunder.
By order dated February 27, 1987 (HCAR No. 24329), the Commission
authorized Energy Services, among other things, to be the gas marketing
subsidiary for the Consolidated System. This order authorized Energy
Services, as a gas marketer, to purchase, pool, transport, exchange,
store and sell gas supplies from competitively priced sources,
including the spot markets, independent producers and brokers, and CNG
Producing Company (``Gas Related Activities'').
By order dated July 26, 1995 (``Order'') Energy Services was
authorized, through December 31, 1997, to invest an aggregate amount up
to $150 million to acquire: (1) An ownership interest, which may be up
to 50% of the voting or nonvoting stock, in one or more corporations
established for the sole purpose of engaging in Gas Related Activities;
(2) either in its own name or through a wholly owned special purpose
subsidiary company, up to 50% of the general partnership interest in
one or more partnerships, or up to 50% voting equity interest in one or
more other joint business entities such as joint ventures or limited
liability companies, which are established for the sole purpose of
engaging in Gas Related Activities; and/or (3) up to 100% of the
limited partnership interests in one or more partnerships established
for the sole purpose of engaging in Gas Related Activities
(collectively, ``Authorized Activities''). None of the projects in
which Energy Services may invest can be a public-utility company.
As of June 30, 1997 Energy Services has invested, under the Order,
$19.168 million and $14.845 million in two pipeline gathering systems,
respectively, in the Main Pass area near the Alabama coast of the Gulf
of Mexico. The Order also authorized Consolidated and Energy Services
to guarantee their obligations incurred as a result of equity
investments made in the joint entities. To date, no guarantees have
been issued.
The applicants now propose to extend the period of authorization,
through December 31, 2002, whereby the applicants may invest the
remaining $115.987 million and an additional $84.013 million (totaling
$200 million) in Authorized Activities under the terms and conditions
set forth in the Order.
Consolidated and Energy Services also propose to continue to make
guarantees of obligations to make equity investments in the joint
entities, up to an aggregate principal amount of $200 million under the
terms and conditions set forth in the Order.\1\
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\1\ The guarantees would be calculated as part of the maximum $2
billion authority to guarantee obligations of subsidiaries granted
to Consolidated and its subsidiaries in Consolidated Natural Gas
Co., Holding Co. Act Release No. 26500 (Mar. 28, 1996).
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Energy Services proposes to continue to enter into service
agreements with one or more of the entities in which it is investing.
These agreements would be in the form of an operating and maintenance
agreement under which Energy Services would operate and manage the
business of the entity, and/or administrative services agreement
whereby Energy Services would provide certain administrative services.
Under the proposed service agreements, Energy Services would be
compensated according to the ``at cost'' requirements of section 13 and
the corresponding rules.
Energy Services proposes to finance its $200 million investment in
Authorized Activities by: (1) Selling shares of its common stock \2\ to
Consolidated; (2) open account advances; \3\ and (3) long-term
loans.\4\
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\2\ Energy Services currently has authorized 4,000 shares of
common stock par value $1.00 per share. However, it has requested in
a pending proceeding in File No. 70-8981 for authority to increase
its common stock equity to 50,000 shares of common stock, par value
$10,000 per share.
\3\ Open account advances may be made to Energy Services on a
revolving basis to finance the Authorized Activities. Open account
advances will be made under letter agreement with Energy Services
and will be repaid on or before a date not more than one year from
the date of the first advance with interest at the same effective
rate of interest as Consolidated's weighted average effective rate
for commercial paper and/or revolving credit borrowings. If no
borrowings are outstanding, the interest rate shall be predicated on
the Federal Funds' effective rate of interest as quoted daily by the
Federal Reserve Bank of New York. Only outstanding amounts of open
account advances will be calculated against the $200 million
financing limits requested in this filing.
\4\ Loans to Energy Services will be evidenced by long-term non-
negotiable notes of Energy Services maturing over a period of time
(not in excess of 50 years) to be determined by the officers of
Consolidated, with the interest predicated on and equal to
Consolidated's cost of funds for comparable borrowings. In the event
Consolidated has not had recent comparable borrowings, the rates
will be tied to the Salmon Brothers, Inc. Bond Market Roundup or
similar publication on the date nearest to the time of takedown. All
loans may be prepaid at any time without premium or penalty.
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Monongahela Power Company, et al. (70-9121)
Monongahela Power Company (``Monongahela''), 1310 Fairmont Avenue,
Fairmont, West Virginia 26554, The Potomac Edison Company (``Potomac
Edison''), 10435 Downsville Pike, Hagerstown, Maryland 21740, and West
Penn Power Company (``West Penn''), 800 Cabin Hill Drive, Greensburg,
Pennsylvania 15601, each an electric utility subsidiary of Allegheny
Energy, Inc., a registered holding company, have filed a declaration
under sections 6(a), 7, 9(a), 10 and 12(c) of the Act and rule 53 under
the Act.
By order dated February 4, 1977 (HCAR No. 19875), the Commission
authorized Monongahela, Potomac Edison and West Penn (``Declarants'')
to issue notes (``Series A Notes'') to The Greene County Industrial
Authority, Greene County, Pennsylvania (``Authority''). Declarants
issued these notes in connection with the issuance of five series of
Bonds (together, ``Series A Bonds'') by the Authority used to finance
certain pollution control equipment and facilities (``Facilities'') at
a generating station in Greene County that is jointly owned by
Declarants. The Series A Bonds were issued in an aggregate principal
amount of $27.495 million, of which $24.995 million currently remains
outstanding.
The Authority intends to issue three series of the bonds in an
aggregate principal amount of $24.995 million (together, ``Series B
Bonds''), the proceeds of which will be used to refund the Series A
Bonds that remain outstanding. Declarants now request authority through
December 31, 2002 to issue notes (``Series B Notes'') to support the
contemporaneous issuance of the Series B Bonds by the Authority. The
Series A Notes will be canceled.
The Series B Bonds will be issued under a supplemental trust
indenture with a corporate trustee, approved by Declarants, and sold at
a time, interest rate, and price approved by Declarants. The interest
rate for the Series B Bonds will not exceed the interest rate of the
corresponding series of Series A Bonds presently outstanding. The
Series B Bonds will mature no later than the year 2020.
Each Declarant will issue a Series B Note that will correspond to
that series of Series B Bonds issued by the Authority on its behalf
with respect to principal amount, interest rate and redemption
provisions. In addition, each Series B Notes will have principal
payment installments that correspond to any mandatory sinking fund
payments and stated maturities of the corresponding Series B Bonds. The
Series B Notes will be secured by a second lien on the Facilities and
certain other properties, subject to the lien securing each Declarant's
first mortgage bonds.
[[Page 62793]]
Payment on the Series B Notes will be applied to pay the maturing
principal and redemption price of and interest and other costs on the
Series B Bonds as such amounts become due. Each Declarant also proposes
to pay any trustees' fee or other expenses incurred by the Authority.
Yankee Atomic Electric Company (70-9135)
Yankee Atomic Electric Company (``Yankee Atomic''), 580 Main
Street, Bolton, Massachusetts 01740, an indirect electric utility
subsidiary of New English Electric System and Northeast Utilities, both
registered holding companies, has filed a declaration under Sections
6(a) and 7 of the Act and rule 54 under the Act.
By order dated December 28, 1995 (HCAR No. 26441), the Commission
authorized Yankee Atomic to incur short-term borrowings through
December 31, 1997 from banks up to an aggregate principal amount of $10
million at any one time. Yankee Atomic now requests an extension of
this authority through December 31, 2002.
Yankee Atomic will evidence its borrowings through the issuance of
notes that will be payable in less than one year from the date of
issuance. The interest rate will not exceed the lending bank's base or
prime lending rate, or the high federal funds rate, plus 1% in either
case. Yankee Atomic pays fees to the banks in lieu of compensating
balance arrangements. Yankee Atomic will use the proceeds to meet its
working needs.
For the Commission, by the Division of Investment Management,
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-30861 Filed 11-24-97; 8:45 am]
BILLING CODE 8010-01-M