-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, ORtfmBTPFmsvPp016zFvYQonZFmijf79mfMpljDwx/Ffa3dwKcPJ1Y7RIu+7JCN+ Mk5X6pvsGtj71l7gbbzlLA== 0000950131-97-003759.txt : 19970603 0000950131-97-003759.hdr.sgml : 19970603 ACCESSION NUMBER: 0000950131-97-003759 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970530 ITEM INFORMATION: Other events FILED AS OF DATE: 19970602 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNICOM CORP CENTRAL INDEX KEY: 0000918040 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 363961038 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11375 FILM NUMBER: 97617860 BUSINESS ADDRESS: STREET 1: 10 SOUTH DEARBORN STREET 37TH FLOOR STREET 2: P O BOX 767 CITY: CHICAGO STATE: IL ZIP: 60690 BUSINESS PHONE: 3123944321 MAIL ADDRESS: STREET 1: P O BOX 767 CITY: CHICAGO STATE: IL ZIP: 60690 FORMER COMPANY: FORMER CONFORMED NAME: CECO HOLDING CO DATE OF NAME CHANGE: 19940125 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMONWEALTH EDISON CO CENTRAL INDEX KEY: 0000022606 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 360938600 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01839 FILM NUMBER: 97617861 BUSINESS ADDRESS: STREET 1: ONE FIRST NATIONAL PLZ 37TH FL STREET 2: P O BOX 767 CITY: CHICAGO STATE: IL ZIP: 60690 BUSINESS PHONE: 3123944321 MAIL ADDRESS: STREET 1: 10 SOUTH DEARBORN STREET STREET 2: 37TH FLOOR CITY: CHICAGO STATE: IL ZIP: 606900767 8-K 1 FORM 8-K 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): May 30, 1997 Commission Registrant; State of Incorporation; IRS Employer File Number Address; and Telephone Number Identification No. 1-11375 UNICOM CORPORATION 36-3961038 (an Illinois corporation) 37th Floor, 10 South Dearborn Street Post Office Box A-3005 Chicago, Illinois 60690-3005 312/394-7399 1-1839 COMMONWEALTH EDISON COMPANY 36-0938600 (an Illinois corporation) 37th Floor, 10 South Dearborn Street Post Office Box 767 Chicago, Illinois 60690-0767 312/394-4321 Item 5. Other Events. Rate Order Appeal Decision On May 30, 1997, the Illinois Appellate Court issued an opinion in the pending appeal of the rate order ("Rate Order") issued by the Illinois Commerce Commission ("ICC") in January 1995 in connection with Commonwealth Edison Company's ("ComEd") most recent rate case. The Appellate Court affirmed the Rate Order in all respects with the exception of two issues which it remanded to the ICC for the purpose of providing further analysis. Those issues relate to: (i) the manner in which certain costs are recovered and which customers should pay these costs, and (ii) the proper rate of return on common equity for ComEd. ComEd believes that the ICC can satisfy the Appellate Court's remand directions on the basis of the existing record from the ICC proceedings which led to the Rate Order. With respect to the rate of return issue, the ICC had determined in the Rate Order that ComEd's cost of common equity was 12.28%. Intervenors had submitted testimony recommending a lower number of 11.50%, and ComEd had submitted testimony recommending a higher number. The ICC ultimately adopted a recommendation made by an ICC Staff witness. The Appellate Court decision requires the ICC to clarify the basis for certain of its findings relating to its rejection of the intervenors' recommendation and to analyze further how the Staff witness arrived at his conclusions. The Appellate Court stated that "After reanalyzing these bases, the Commission can determine whether or not [the Staff witness'] cost of equity presentation should still be followed." Each tenth of one percent change in the common equity rate of return has an approximately $8.3 million effect on the level of rates. The Appellate Court decision does not have any immediate effect on ComEd's rates or require any refunds. In connection with the initiation of the appeal, ComEd committed that "in the event that a final, non-appealable order is entered reversing the ICC's rate order in this case, that Commonwealth Edison will refund to its customers any amounts collected pursuant to the Rate Order that are subsequently determined by the Commission on remand, and affirmed by all reviewing courts in the event of an appeal, to have been in excess of the 'just and reasonable' rates that would have been in effect under a proper rate order as determined by the Commission, plus interest at the legal rate." As of March 31, 1997, electric operating revenues of approximately $754 million (excluding revenue taxes) were subject to refund. As noted, the Appellate Court's decision did not reverse the Rate Order. Therefore, no refunds are required by the Appellate Court's decision. It is expected that the Appellate Court's decision will be appealed by the intervenors to the Illinois Supreme Court. Pending Deregulation Legislation As discussed under "Changes in the Electric Utility Industry" in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 1997, various legislative proposals have been pending in the Illinois legislature for the purpose of, among other things, introducing price-based competition into the supply of electric energy in Illinois under a less regulated structure. That process will continue into the Fall of 1997. On May 30, 1997, the Illinois House of Representatives approved, on a vote of 85 to 12, a bill that would have provided for a 10% residential rate reduction commencing in 1998, customer access to other electric suppliers in a phased-process over several years, the recovery by utilities of a portion of their invested costs that might not otherwise be recoverable in charges in a less regulated market, and a leveling of certain regulatory and tax provisions as applied to various electric service providers. The Illinois Senate, however, deferred final consideration of the bill until the Fall veto session scheduled for October 1997. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. UNICOM CORPORATION (Registrant) Date: May 30, 1997 By: John C. Bukovski --------------------- John C. Bukovski Vice President COMMONWEALTH EDISON COMPANY (Registrant) Date: May 30, 1997 By: John C. Bukovski -------------------- John C. Bukovski Vice President -----END PRIVACY-ENHANCED MESSAGE-----