35-CERT 1 w47205ae35-cert.txt 35-CERT FOR CONECTIV DATED 3/30/2001 1 As Filed with the Securities and Exchange Commission on March 30, 2001 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------------------------- In the Matter of INTERIM CERTIFICATE Conectiv and Subsidiaries OF File No. 70-9095 NOTIFICATION (Public Utility Holding Company PURSUANT TO RULE 24 Act of 1935) -------------------------------------- This Certificate of Notification is filed by Conectiv, a Delaware corporation, pursuant to Rule 24 (17 C.F.R. Section 250.24). Such filing is made in connection with Conectiv's Form U-1 Application-Declaration, as amended (the "Application-Declaration"), and authorized by the orders of the Securities and Exchange Commission (the "Commission") dated February 26, 1998, August 21, 1998, September 28, 1998, October 21, 1998, November 13, 1998, December 14, 1999 and August 17, 2000 (the "Orders") in the above-referenced file. The Orders directed that Conectiv file with the Commission quarterly certificates pursuant to Rule 24 within 60 days after each of the first three calendar quarters and within 90 days after the last calendar quarter. This certificate reports transactions from the period October 1, 2000 through December 31, 2000. Capitalized terms not otherwise defined herein have the meaning ascribed in the Application-Declaration. 1. Conectiv Common Stock issued during period (new issue shares only):
---------------------------------------------------------------------------------------------------------------- #Of Shares Issued During Average Cumulative Issuance Period Price per Share Issuance Amount Amount ---------------------------------------------------------------------------------------------------------------- 0 N/A N/A N/A ----------------------------------------------------------------------------------------------------------------
Note: Conectiv's issuance of common stock and long-term debt is limited to $500 million in aggregate pursuant to the Orders. Of this amount, no more than $250 million of long-term debt can be issued (subject to a reservation of jurisdiction on the remaining $250 million of long-term debt). Conectiv has already issued $250 million of long-term debt as noted in Item 4 below. Therefore, the remaining capacity for the issuance of common stock pursuant to the Orders is $250 million less any additional long-term is issued pursuant to a release from the reservation of jurisdiction. 2. Conectiv Common Stock issued pursuant to dividend reinvestment plans and Common Stock and options issued pursuant to benefit plans:
------------------------------------------------------------------------------------------------------------------ Common Stock # Of Shares Issued During Period Cumulative # Of Shares Issued ------------------------------------------------------------------------------------------------------------------ Dividend Reinvestment 0 0 ------------------------------------------------------------------------------------------------------------------ Employee Benefit Plans 11,300 14,900 ------------------------------------------------------------------------------------------------------------------
During the period, 463,500 shares of restricted stock were issued under the Conectiv Incentive Compensation Plan. During the period, 11,300 shares of Conectiv Common Stock were issued at an average price of $18.04 pursuant to the exercise of options under the Conectiv Incentive Compensation Plan. There were no stock options exercised under the Delmarva Long-Term Incentive Plan during the quarter and no shares of Common Stock were issued. To date, awards under the employee benefit plans include 2,251,000 common stock options and 674,700 shares of restricted stock. 2 Note: Cumulative shares issued for dividend reinvestment plans cannot exceed 5 million shares; cumulative shares issued for employee benefit plans cannot exceed 5 million shares. 3. Conectiv Common Stock issued for acquisitions:
------------------------------------------------------------------------------------------------------------------ # Of Shares Issued During Period Value per Share Restricted (Y/N) ------------------------------------------------------------------------------------------------------------------ 0 N/A N/A ------------------------------------------------------------------------------------------------------------------
4. Conectiv Long-Term Debt issued during period: None Note: Aggregate long-term debt financing by Conectiv cannot exceed $250 million pursuant to the Orders; an additional $750 million of long-term debt is subject to a reservation of jurisdiction. Conectiv has already issued $250 million of long-term debt pursuant to the Orders. 5. Short-Term Debt issued by Conectiv and Delmarva Power & Light Company ("Delmarva") during period:
---------------------------------------------------------------------------------------------------------------- Company Balance at Period-End Weighted Average Cost Highest Daily Balance ---------------------------------------------------------------------------------------------------------------- Conectiv $709,530,398 7.42% $774,696,000 ---------------------------------------------------------------------------------------------------------------- Delmarva 0 N/A 0 ----------------------------------------------------------------------------------------------------------------
Note: The aggregate daily balance of Conectiv and Delmarva cannot exceed $1.3 billion per Orders; Delmarva's daily balance cannot exceed $275 million pursuant to the order of the Virginia State Corporation Commission. 6. Interest rate risk management transactions during period by Conectiv and/or Utility Subsidiaries: No activity. 7. Utility Subsidiary financings during period: Delmarva: See Item 5 above. Note: Short-term and long-term financings by Atlantic City Electric Company are exempt pursuant to Rule 52; long-term financings by Delmarva are exempt pursuant to Rule 52. 8. Non-utility financing during the period not exempt pursuant to Rule 52: None. 9. Guarantees issued by Conectiv and Non-utility Subsidiaries as of end of period: ------------------------------------------------------------------------------- Conectiv $248.7 million ------------------------------------------------------------------------------- Non-Utility Subsidiaries $8.8 million ------------------------------------------------------------------------------- Note: Guarantees by Conectiv cannot exceed $350 million; guarantees by Non-Utility Subsidiaries cannot exceed $100 million. 10. Borrowings from System Money Pool during period: Pursuant to the Orders, the limit on borrowings by individual Non-Utility Subsidiaries was eliminated and the applicable borrowings are reported on Form U-6B-2 filed contemporaneously herewith. 11. Forms U-6B-2 filed with Commission during period: ------------------------------------------------------------------------------- Filing Entity Date of Filing ------------------------------------------------------------------------------- ATE Investment, Inc. 3/30/01 ------------------------------------------------------------------------------- Atlantic Southern Properties, Inc. 3/30/01 ------------------------------------------------------------------------------- Conectiv Communications, Inc. 3/30/01 ------------------------------------------------------------------------------- Conectiv Plumbing LLC 3/30/01 ------------------------------------------------------------------------------- Conectiv Properties and Investments, Inc. 3/30/01 ------------------------------------------------------------------------------- Conectiv Resource Partners, Inc. 3/30/01 ------------------------------------------------------------------------------- 3 ------------------------------------------------------------------------------- Conectiv Services, Inc 3/30/01 ------------------------------------------------------------------------------- Conectiv Solutions, LLC 3/30/01 ------------------------------------------------------------------------------- DCI I, Inc 3/30/01 ------------------------------------------------------------------------------- DCI II, Inc. 3/30/01 ------------------------------------------------------------------------------- DCTC-Burney, Inc. 3/30/01 ------------------------------------------------------------------------------- Enertek Energy Partners, LP 3/30/01 ------------------------------------------------------------------------------- King Street Assurance Ltd 3/30/01 ------------------------------------------------------------------------------- 12. Financial Statements: o Conectiv Balance Sheet (Incorporated by reference to the filing of Conectiv on Form 10-K for the period ended December 31, 2000) o Delmarva Balance Sheet (Incorporated by reference to the filing of Delmarva on Form 10-K for the period ended December 31, 2000) 13. Registration Statements filed pursuant to the Securities Act of 1933: Registration Statement on Form S-8 pursuant to the Conectiv Savings & Investment Plan filed on December 1, 2000 (Registration No. 333-51068) 14. Computation under Rule 53(a):
---------------------------------------------------------------------------------------------------- ($ THOUSANDS) 1 2 3 4 5 6 7 ---------------------------------------------------------------------------------------------------------------------- Average Average 10% Test 2% of Capital Maximum EWG Aggregate Remaining Retained Retained Invested in Investments EWG Capacity for Earnings Earnings Utility Plant per Orders Investments EWG (Last Four (Previous (Use only if Investments Quarters) Four 1 is 10% less Quarters) than 2) ---------------------------------------------------------------------------------------------------------------------- 12/31/00 4,822 (14,989) 132% N/A 350,000 47,500 302,500 ----------------------------------------------------------------------------------------------------------------------
15. Conectiv Investment in EWG Projects: Conectiv's investments in EWGs as of December 31, 2000 consisted of $47.5 million in Conectiv Mid-Merit, Inc. 16. Conectiv's Consolidated Capitalization Ratios as of December 31, 2000:
($ thousands) ------------------------------------------------------------------------------------------------------------ Debt 2,990,470 67.42% ------------------------------------------------------------------------------------------------------------ Preferred Stock 284,883 6.42% ------------------------------------------------------------------------------------------------------------ Common Equity 1,160,269 26.16% --------- ------ ------------------------------------------------------------------------------------------------------------ Total Capitalization 4,435,622 100.00% ------------------------------------------------------------------------------------------------------------
17. Market/Book Ratio of Conectiv Common Stock:
---------------------------------------------------------------------------------------------------------------------- Closing Price @ 12/31/00 Book Value @ 12/31/00 Ratio ---------------------------------------------------------------------------------------------------------------------- Conectiv Common Stock $20.0625 $13.10 1.53 ---------------------------------------------------------------------------------------------------------------------- Conectiv Class A Common Stock $12.875 $13.10 0.98 ----------------------------------------------------------------------------------------------------------------------
18. New EWG Projects during Preceding Quarter: There were three EWG projects initiated during the fourth quarter of 2000: PIP28, #5217164 and #5216521. 19. Consolidated and EWG Earnings Growth: There currently are no operating EWG projects. 20. EWG Revenue and Net Income: There currently are no operating EWG projects. 4 SIGNATURE Pursuant to the requirements of the Public Utility Holding Company Act of 1935, the undersigned companies have duly caused this Certificate of Notification to be signed on their behalf by the undersigned thereunto duly authorized. The signatures of the applicants and of the persons signing on their behalf are restricted to the information contained in this application which is pertinent to the application of the respective companies. Conectiv Delmarva Power & Light Company Conectiv Resource Partners, Inc. Conectiv Energy Supply, Inc. Conectiv Properties and Investments, Inc. Conectiv Services, Inc. DCI I, Inc. DCI II, Inc. DCTC-Burney, Inc. Conectiv Operating Services Company Conectiv Solutions, LLC Conectiv Plumbing, LLC Atlantic City Electric Company Atlantic Generation, Inc. Atlantic Southern Properties, Inc. ATE Investment, Inc. Conectiv Thermal Systems, Inc. Binghamton General, Inc. Binghamton Limited, Inc. Pedrick General, Inc. Vineland Limited, Inc. Vineland General, Inc. ATS Operating Services, Inc. King Street Assurance, Ltd. Atlantic Jersey Thermal Systems, Inc Conectiv Atlantic Generation, L.L.C. ACE REIT, Inc. Conectiv Communications, Inc. Conectiv Delmarva Generation, Inc. Conectiv Energy Holding Company Conectiv Mid-Merit, Inc. March 30, 2001 /s/ Philip S. Reese ------------------- Philip S. Reese Vice President and Treasurer