35-CERT 1 w52939ae35-cert.txt 35-CERT FOR CONECTIV DATED AUGUST 29, 2001 1 As Filed with the Securities and Exchange Commission on August 29, 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 Act of 1935) PURSUANT TO RULE 24 -------------------------------------- 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, August 17, 2000 and June 7, 2001 (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 April 1, 2001 through June 30, 2001. 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 Average Cumulative Issuance During Period Price per Share Issuance Amount Amount ------------- --------------- --------------- ------ ------------------------------- ---------------------------- ---------------------------- ---------------------------- 0 N/A 0 0 ------------------------------- ---------------------------- ---------------------------- ----------------------------
Note: Conectiv's issuance of common stock and long-term debt is limited to $500 million in aggregate pursuant to the Order dated February 26, 1998. 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). An additional $500 million of long-term debt issuance was authorized in the Order dated December 14, 1999, subject to a reservation of jurisdiction. 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 Order dated February 26, 1998 is $250 million less any additional long-term debt 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 0 14,900 ---------------------------------------- -------------------------------------- --------------------------------------
2 During the period, no stock options or shares of restricted stock were issued under the Conectiv Incentive Compensation Plan. During the period, no shares of Conectiv Common Stock were issued 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 2,909,500 common stock options and 752,100 shares of restricted stock. 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 (see Item 1 above); 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 and, therefore, cannot issue any additional long-term debt without a release from the reservation of jurisdiction. 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 $782,921,576 4.66% $799,159,000 ------------------------------- ---------------------------- ---------------------------- ---------------------------- Delmarva 0 N/A 0 ------------------------------- ---------------------------- ---------------------------- ----------------------------
Note: Conectiv's daily balance cannot exceed $2 billion pursuant to the Orders; Delmarva's daily balance cannot exceed $275 million pursuant to the Orders and 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. Conectiv Atlantic Generation, L.L.C.: None Conectiv Delmarva Generation, Inc.: None 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. Aggregate financing by Conectiv Atlantic Generation, L.L.C., Conectiv Delmarva Generation, Inc. and any New Utility Subsidiary cannot exceed $1 billion. 8. Non-utility financing during the period not exempt pursuant to Rule 52:
--------------------------------------------- ---------------------------------- ---------------- -------------------- Company Type of Borrowing Amount ($) Interest Rate (%) --------------------------------------------- ---------------------------------- ---------------- -------------------- Atlantic Generation, Inc. Money Pool Advance 10,660,279 4.66 --------------------------------------------- ---------------------------------- ---------------- -------------------- Conectiv Energy Supply, Inc. Money Pool Advance 230,915,779 4.66 --------------------------------------------- ---------------------------------- ---------------- -------------------- Conectiv Thermal Systems, Inc. Money Pool Advance 275,910 4.66 --------------------------------------------- ---------------------------------- ---------------- -------------------- Conectiv Energy Holding Company Money Pool Advances 181,353,852 4.66 --------------------------------------------- ---------------------------------- ---------------- -------------------- Conectiv Mid-Merit, Inc. Parent Company Advance 162,039,947 4.66 --------------------------------------------- ---------------------------------- ---------------- -------------------- Various Surety Bonds 67,860,668 N/A --------------------------------------------- ---------------------------------- ---------------- --------------------
3 9. Guarantees issued by Conectiv and Non-utility Subsidiaries as of end of period: ------------------------------------------------------------ --------------------------------------------------------- Conectiv $683.6 million ------------------------------------------------------------ --------------------------------------------------------- Non-Utility Subsidiaries $8.8 million ------------------------------------------------------------ ---------------------------------------------------------
Note: Guarantees by Conectiv cannot exceed $1.5 billion; 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. 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- Atlantic Southern Properties, Inc. 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- Conectiv Communications, Inc. 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- Conectiv Plumbing LLC 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- Conectiv Properties and Investments, Inc 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- Conectiv Resource Partners, Inc. 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- Conectiv Services, Inc 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- Conectiv Solutions, LLC 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- DCI I, Inc 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- DCI II, Inc. 8/29/01 ------------------------------------------------------------ --------------------------------------------------------- King Street Assurance Ltd 8/29/01 ------------------------------------------------------------ ---------------------------------------------------------
12. Financial Statements: - Conectiv Balance Sheet (Incorporated by reference to the filing of Conectiv on Form 10-Q for the period ended June 30, 2001) - Delmarva Balance Sheet (Incorporated by reference to the filing of Delmarva on Form 10-Q for the period ended June 30, 2001) 13. Registration Statements filed pursuant to the Securities Act of 1933: On April 26, 2001, Atlantic City Electric Transition Funding LLC filed a Registration Statement on Form S-3. 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 1 Investments Quarters) Four is 10% less than Quarters) 2) ----------------------------------------------------------------------------------------------------------------------- 6/30/01 79,320 26,800 196% N/A 350,000 156,300 193,700 -----------------------------------------------------------------------------------------------------------------------
15. Conectiv Investment in EWG Projects: Conectiv's investments in EWGs as of June 30, 2001 was $156.3 million. 4 16. Conectiv's Consolidated Capitalization Ratios as of June 30, 2001: ($ thousands) ---------------------------------------- -------------------------------------- -------------------------------------- Debt 3,110,684 67.23% ---------------------------------------- -------------------------------------- -------------------------------------- Preferred Stock 273,383 5.91% ---------------------------------------- -------------------------------------- -------------------------------------- Common Equity 1,242,840 26.86% --------- ------ ---------------------------------------- -------------------------------------- -------------------------------------- Total Capitalization 4,626,907 100.00% ---------------------------------------- -------------------------------------- --------------------------------------
17. Market/Book Ratio of Conectiv Common Stock:
----------------------------------------- ------------------------------ --------------------------- ----------------- Closing Price @ 6/30/01 Book Value @ 6/30/01 Ratio ----------------------------------------- ------------------------------ --------------------------- ----------------- Conectiv Common Stock $21.60 $14.01 1.54 ----------------------------------------- ------------------------------ --------------------------- ----------------- Conectiv Class A Common Stock $19.50 $14.01 1.39 ----------------------------------------- ------------------------------ --------------------------- -----------------
18. New EWG Projects during Preceding Quarter: During the period, Conectiv Mid-Merit, Inc. acquired an interest in Energy Systems North East, LLC, which is an EWG. 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. 5 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. August 29, 2001 /s/ Philip S. Reese ------------------- Philip S. Reese Vice President and Treasurer