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                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


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                                    FORM 8-K


                                 CURRENT REPORT
                     PURSUANT TO SECTIONS 13 OR 15(D) OF THE
                       SECURITIES AND EXCHANGE ACT OF 1934




       Date of Report (Date of earliest event reported) September 18, 1998
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                                    CONECTIV
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               (EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)





         Delaware                      1-13895                   51-0377417
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(STATE OR OTHER JURISDICTION         (COMMISSION               (IRS EMPLOYER
     OF INCORPORATION)               FILE NUMBER)            IDENTIFICATION NO.)




800 King Street, P.O. Box 231, Wilmington, Delaware                    19899
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    (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                          (ZIP CODE)




         Registrant's Telephone Number, Including Area Code 302-429-3114
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                                      None
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          (FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)



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ITEM 5.  OTHER EVENTS

         On August 19, 1998, an Administrative Law Judge (the "ALJ") from the
New Jersey Office of Administrative Law issued an initial decision on Atlantic
City Electric Company's ("ACE") stranded costs and unbundled rate filing. The
ALJ, in reviewing ACE's filing, recognized that ACE's stranded costs were $812
million for non utility generation contracts and $397 million for generation.
The ALJ made no specific recommendations on rate issues. Legal briefs on
exceptions to the ALJ decision are required to be filed with the New Jersey
Board of Public Utilities ("BPU") by October 2, 1998 and reply briefs must be
filed by October 31, 1998. A final BPU decision would be expected in
mid-December, unless an extension is permitted and only after the necessary
legislation is approved by the New Jersey legislature and signed by the
Governor.

                                      * * *

         The "Electric Discount and Energy Competition Act" was introduced into
the New Jersey legislature as Bill A-10 (the "Bill") on September 14, 1998.
Among other things, the Bill would require the BPU to provide for retail choice
of electric power suppliers; deregulation of electric power rates and other
competitive services, such as metering and billing; separation of competitive
and regulated services; unbundling of rates for electric power service; and
licensing of electric and gas suppliers. The Bill provides June 1, 1999 as the
starting date for each utility to provide retail choice of electric power
suppliers for its customers. Full implementation of retail choice is expected
within four months of the start date of retail competition.

         In connection with the deregulation of electric power rates, the Bill
would authorize the BPU to permit electric public utilities to recover a portion
of their stranded costs through a non-bypassable market transition charge of
limited duration. In addition, the Bill would provide for the issuance of
transition bonds to finance portions of a given utility's stranded costs, as
determined by the BPU.

         The Bill contains provisions which mandate reductions in rates by a
minimum of five to ten percent, relative to the aggregate level of bundled rates
in effect as of April 30, 1997. Under certain circumstances, the minimum rate
reductions may be implemented according to specified time frames. Rate
reductions in addition to the minimums prescribed may be ordered by the BPU, if
it determines that such reductions are necessary in order to achieve just and
reasonable rates. The Company believes that any rate reductions, including the
minimums required by the proposed legislation, should be made by giving
consideration to a utility's financial integrity, and should be made to result
in just and reasonable rates.

         The Bill provides for immediate effectiveness of the Act. The Bill also
grants authority to the BPU, retroactive to April 1, 1997, with respect to such
matters as the holding of hearings, the issuance of orders and the establishment
of various standards in connection with deregulation. As directed by the BPU,
ACE, a wholly owned subsidiary of the Company, has participated in unbundling
and stranded cost proceedings before the Office of Administrative Law, and in
separate proceedings before the BPU with respect to various restructuring
issues, beginning with ACE's deregulation filings submitted in July 1997.

         If enacted in its present form, rate reductions, as mandated in the
Bill, could have a material adverse effect upon the financial condition of the
Company and ACE. It is not possible to predict the form in which industry
deregulation legislation may be enacted. As a result, the Company cannot predict
the timing or the ultimate effects on the Company and ACE of deregulation as it
may be implemented in the State of New Jersey.



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                                    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.




                                                         Conectiv
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                                                       (Registrant)



Date:    September 18, 1998                          /s/ L.M. Walters
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                                                         Treasurer










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