NEW RC PRO FORMA COMBINED STATEMENT OF EARNINGS (Unaudited) FOR THE TWELVE MONTHS ENDED JUNE 30, 2001
(Millions of Dollars, Except Per Share Amounts)	Pepco	Conectiv (As Reclassified)	Merger Pro Forma Adjs. Dr. (Cr)		NEW RC Merged Pro Forma	Financing Pro Forma Adjs. Dr. (Cr)		NEW RC (Pro Forma)
Operating Revenue
Utility	$2,127.6	$2,238.5	$18.0	(a)	$4,348.1			$4,348.1
Competitive operations	547.8	3,566.0			4,113.8			4,113.8
Gain on divestiture of generation          and other assets	474.0	313.8			787.8			787.8
Total Operating Revenue	3,149.4	6,118.3	18.0		9,249.7			9,249.7
Operating Expenses
Fuel and purchased energy	1,314.6	4,266.8			5,581.4			5,581.4
Other operation and maintenance	396.9	613.3			1,010.2			1,010.2
Depreciation and amortization	196.6	248.7	16.4	(e)	461.7			461.7
Other taxes	199.1	76.9			276.0			276.0
Interest	195.3	199.0			394.3	185.7	(l)	580.0
Impairment loss	45.7				45.7			45.7
Total Operating Expenses	2,348.2	5,404.7	16.4		7,769.3	185.7		7,955.0
Loss from Equity Investments, Principally        Telecommunication Entities	(19.6)	67.2			47.6			47.6
Operating Income	781.6	780.8	(34.4)		1,528.0	(185.7)		1,342.3
Distributions on Preferred Securities of Sub. Trust	9.2	20.4			29.6			29.6
Income Tax Expense	373.7	319.6	(9.6)	(a),(e)	683.7	(74.3)	(m)	609.4
INCOME FROM CONTINUTING OPERATIONS	398.7	440.8	(24.8)		814.7	(111.4)		703.3
Dividends and Redemption Premium/Expenses        on Preferred Stock	5.2				5.2			5.2
Earnings From Continuing Operations     Available For Common Stock	$393.5	$440.8	$(24.8)		$809.5	$(111.4)		$698.1
Weighted Average Shares Outstanding        (in millions)
Common stock	110.4	82.7	(34.9)	(f)	158.2	33.3	(n)	191.5
Class A Common Stock	-	5.7	(5.7)	(f)	-			-
Earnings Per Share of Common Stock, On
Income from Continuing Operations
Common Stock, Basic	$3.56	$5.19			$5.12			$3.65
Common Stock, Diluted	$3.56	$5.19			$5.09			$3.62
Class A Common Stock	-	$2.02			-			-
Dividends Declared Per Share
Common Stock	$0.250	$0.88			1.46			1.46
Class A Common Stock	-	$2.65			-			-