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): April 29, 2002
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Commission Exact Name of Registrant as States of I.R.S.
File Number Specified in its Charter and Incorporation Employer
Principal Office Address and Identification
Telephone Number Number
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1-16681 The Laclede Group, Inc. Missouri 74-2976504
720 Olive Street
St. Louis, MO 63101
314-342-0500
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1-1822 Laclede Gas Company Missouri 43-0368139
720 Olive Street
St. Louis, MO 63101
314-342-0500
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NONE
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(Former name or former address, if changed since last report)
Item 5. Other Events
Updates on Regulatory and Legal Proceedings
As previously disclosed, Laclede Gas Company was named a defendant
in a lawsuit in the Circuit Court of the City of St. Louis, Missouri, Ronald
J. Johnson vs. Laclede Gas Company, alleging that a class of persons
residing in homes provided natural gas by Laclede Gas through direct buried
copper service lines have, among other things, suffered diminution in
property values and annoyance and discomfort due to residing in homes served
by such allegedly corroded lines. The Missouri Public Service Commission
("MoPSC") filed a motion to intervene and a motion to strike plaintiff's
prayer for injunctive relief and to stay matters within the primary
jurisdiction of the MoPSC. The Circuit Court subsequently granted the
MoPSC's request for intervention. Laclede Gas filed a motion to dismiss that
urged, among other things, the exclusive jurisdiction of the MoPSC as to gas
safety matters generally and the direct buried copper service replacement
program in particular. The Circuit Court granted Laclede Gas' motion to
dismiss the lawsuit on February 22, 2002. The plaintiff did not file an
amended petition within the time granted by the Court but filed an appeal on
April 3, 2002. On May 13, 2002, the plaintiff dismissed his appeal.
On March 15, 2002, the Staff of the MoPSC filed its recommendation
in a proceeding established to review Laclede Gas' gas costs for fiscal
2000. In its recommendation, the Staff proposed to disallow the recovery of
approximately $2.6 million in gas costs on the alleged grounds that Laclede
Gas had slightly more transportation capacity than it needed to serve its
customers. On May 7, 2002, the Staff revised its recommendation so as to
note that although it does not agree with some of Laclede Gas' assumptions,
Laclede Gas and the Staff's estimated requirements were fairly close and it
no longer proposed to disallow the $2.6 million in gas costs.
Laclede Gas had a Gas Supply Incentive Plan ("GSIP") through
September 30, 2001. Under the GSIP, Laclede Gas shared with its customers
certain gains and losses related to the acquisition and management of its
gas supply assets but retained all income resulting from sales made outside
its traditional service area. These activities continued to provide benefits
to both Laclede Gas' customer and shareholders. Overall cost savings for
Laclede Gas and its customers were $40.4 million in 2001, $28.9 million in
2000, and $28.4 million in 1999. These efforts resulted in pre-tax income to
shareholders of $10.0 million in 2001, $9.6 million in 2000 and $5.4 million
in 1999. On November 17, 2000, Laclede Gas filed a proposal with the MoPSC
to extend, add a fixed price component and make other modifications to the
GSIP. On September 20, 2001, the MoPSC, with one dissent, ruled that the
GSIP should be allowed to expire. Laclede Gas requested clarification and
rehearing, which the Commission denied. However, pursuant to the settlement
of its 2001 rate case, the MoPSC authorized Laclede Gas to retain, effective
December 1, 2001, all income from the release of pipeline capacity. Laclede
Gas filed a petition for judicial review of the MoPSC's decision along with
a motion requesting a stay of the MoPSC's decision. On May 13, 2002 the
Court denied the request for a stay. The appeal of the MoPSC's decision
remains pending.
Previously Laclede Gas Company appealed the MoPSC's decision in its
1999 rate case relative to the calculation of Laclede Gas' depreciation
rates. The Circuit Court remanded the decision to the MoPSC based on
inadequate findings of fact. The MoPSC upheld its previous order and Laclede
Gas appealed this second order to the Court. On April 29, 2002, the Court
ruled that the MoPSC's second order was lawful and reasonable. Laclede Gas
intends to appeal the Circuit Court's decision to the Missouri Western
District Court of Appeals.
Item 7. Exhibits.
See the Index to Exhibits.
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 LACLEDE GROUP, INC.
(Registrant)
By: /s/ Douglas H. Yaeger
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Douglas H. Yaeger
Chairman of the Board, President
And Chief Executive Officer
May 28, 2002
(Date)
Index to Exhibits
Exhibit No.
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3.1 Amendment to Articles of Incorporation of Laclede Gas Company,
adopted October 1, 2001.
3.2 Amendment to Articles of Incorporation of Laclede Gas Company
adopted January 18, 2002.
3.3 Restated Articles of Incorporation of Laclede Gas Company effective
March 18, 2002.
3.4 Bylaws of Laclede Gas Company effective January 18, 2002.
3.5 Amendment to bylaws of The Laclede Group, Inc. adopted September
27, 2001.
10.1 Loan Agreement between The Laclede Group and U.S. Bank National
Association.