-----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, RroTULY5wx0MQAaeBV6I4STU8Vk35NR+nVvq83Mq85WArW4v60V1CJ9F6NBzmMl0 FcW8Z0Vo6QPcu7ZdXL+ZGA== 0000950159-01-000038.txt : 20010130 0000950159-01-000038.hdr.sgml : 20010130 ACCESSION NUMBER: 0000950159-01-000038 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010112 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PECO ENERGY CO CENTRAL INDEX KEY: 0000078100 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 230970240 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-01401 FILM NUMBER: 1517859 BUSINESS ADDRESS: STREET 1: 2301 MARKET ST STREET 2: P O BOX 8699 CITY: PHILADELPHIA STATE: PA ZIP: 19101 BUSINESS PHONE: 2158414000 FORMER COMPANY: FORMER CONFORMED NAME: PHILADELPHIA ELECTRIC CO DATE OF NAME CHANGE: 19920703 8-K 1 0001.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 January 12, 2001 (Date of earliest event reported) PECO ENERGY COMPANY (Exact name of registrant as specified in its charter) PENNSYLVANIA 1-1401 23-0970240 (State or other (SEC (IRS Employer jurisdiction of file number) Identification incorporation) Number) 230l Market Street Philadelphia, Pennsylvania 19101 (Address of principal executive offices) Registrant's telephone number, including area code: (215) 841-4000 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. On January 12, 2001, Exelon Corporation (Exelon) restructured the operations of PECO Energy Company's (PECO) generation and ventures businesses into newly formed subsidiaries of Exelon. Effective January 1, 2001, PECO transferred, at book value, its generating and ventures businesses to Exelon Generation Company, LLC (Exelon Generation) and Exelon Enterprises Company, LLC (Exelon Enterprises), respectively. Under the new business structure, Exelon serves as the holding company for a group of subsidiaries. The corporate restructuring separates PECO's regulated energy delivery business from its unregulated generation and ventures businesses. PECO's regulated energy delivery business is continuing to operate as and be identified as PECO. The restructuring created Exelon Ventures Company, LLC, which is comprised of the unregulated competitive businesses and assets, including Exelon Generation and Exelon Enterprises. The restructuring also created Exelon Business Services Company, which provides a full range of support services such as legal, human resources and financial services to Exelon business units. The restructuring transaction involved the transfer of the assets and liabilities of PECO's generation and ventures businesses, at book value, to the respective subsidiaries of Exelon mentioned above, and accordingly, involved no consideration. The book value of the transferred assets is based on the audited net book value at December 31, 2000, which has not been finalized as of the date of this filing. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (b) Pro Forma Financial Information UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS The following unaudited pro forma condensed financial statements should be read in conjunction with the consolidated historical financial statements and related notes of PECO which are included in PECO's Quarterly Report on Form 10-Q for the quarter ended September 30, 2000 and PECO's Annual Report on Form 10-K for the year ended December 31, 1999. The unaudited pro forma condensed statements of income for the nine months ended September 30, 2000 and for the year ended December 31, 1999 assume that these transactions were completed on January 1, 1999. The unaudited pro forma condensed balance sheet as of September 30, 2000 assumes that these transactions occurred on that date. The following unaudited pro forma condensed financial statements are for illustrative purposes only. They are not necessarily indicative of the financial position or operating results that would have occurred had these transactions been completed on January 1, 1999 or September 30, 2000, as assumed above; nor is the information necessarily indicative of future financial position or operating results. Results of operations and financial position in the first year after restructuring could differ significantly from the unaudited pro forma combined condensed financial statements, which are based on past operations. Future operations will be affected by various factors including operating performance, energy market developments and other matters. The historical financial statements of PECO included in the accompanying pro forma combined condensed financial statements for the nine months ended September 30, 2000 are unaudited. The December 31, 1999 historical financial statements of PECO were derived from audited financial statements but do not include all disclosures required by GAAP. The pro forma financial statements and description of the pro forma adjustments reflect the transfer of PECO's generation and ventures business units to Exelon Generation and Exelon Enterprises, respectively. The book value of the transferred assets and liabilities is based on the audited net book value at December 31, 2000 which has not been finalized as of the date of this filing. PECO Energy Company Unaudited Pro Forma Condensed Statement of Income (In millions, Except Per Share Data) For the Nine Month Period Ended September 30, 2000
Pro Forma Pro As Filed Adjustments(1) Forma -------- --------------- ------ Operating Revenues........................ $4,366 $(1,883) $2,483 ------ ------- ------ Operating Expenses Fuel and Energy Interchange............. 1,515 (525) 990 Operation and Maintenance............... 1,305 (975) 330 Depreciation and Amortization........... 244 (171) 73 Taxes Other Than Income Taxes........... 197 (72) 125 ------ ------- ------ Total Operating Expenses.............. 3,261 (1,743) 1,518 ------ ------- ------ Operating Income.......................... 1,105 (140) 965 ------ ------- ------ Other Income and Deductions Interest Expense........................ (333) 95 (238) Other, net.............................. 71 (58) 13 ------ ------- ------ Total Other Income and Deductions..... (262) 37 (225) ------ ------- ------ Income Before Income Taxes and Extraordinary Item....................... 843 (103) 740 Income Tax Expense........................ 316 (27) 289 ------ ------- ------ Income Before Extraordinary Item.......... $ 527 $ (76) $ 451 ====== ======= ====== Preferred Stock Dividends................. $ 8 $ -- $ 8 ====== ======= ====== Income Before Extraordinary Item per Share.................................... $ 2.96 $ 2.53 ====== ====== Income Before Extraordinary Item per Share--Diluted........................... $ 2.94 $ 2.52 ====== ====== Average Basic Shares Outstanding.......... 175.0 175.0 ====== ====== Average Diluted Shares Outstanding........ 176.0 176.0 ====== ======
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements. PECO Energy Company Unaudited Pro Forma Condensed Statement of Income (In millions, Except Per Share Data) For the Year Ended December 31, 1999
Pro Forma Pro As Filed Adjustments(1) Forma ----------- -------------- ------ Operating Revenues................... $5,437 $(2,180) $3,257 ------ ------- ------ Operating Expenses Fuel and Energy Interchange........ 2,145 (984) 1,161 Operation and Maintenance.......... 1,384 (878) 506 Depreciation and Amortization...... 237 (129) 108 Taxes Other Than Income Taxes...... 262 (58) 204 ------ ------- ------ Total Operating Expenses......... 4,028 (2,049) 1,979 ------ ------- ------ Operating Income..................... 1,409 (131) 1,278 ------ ------- ------ Other Income and Deductions Interest Expense................... (396) 1 (395) Other, net......................... (36) 69 33 ------ ------- ------ Total Other Income and Deductions...................... (432) 70 (362) ------ ------- ------ Income Before Income Taxes and Extraordinary Item.................. 977 (61) 916 Income Tax Expense................... 358 (7) 351 ------ ------- ------ Income Before Extraordinary Item..... $ 619 $ (54) $ 565 ====== ======= ====== Preferred Stock Dividends............ $ 12 $ -- $ 12 ====== ======= ====== Income Before Extraordinary Item per Share............................... $ 3.10 $ 2.82 ====== ====== Income Before Extraordinary Item per Share--Diluted...................... $ 3.08 $ 2.80 ====== ====== Average Basic Shares Outstanding..... 196.3 196.3 ====== ====== Average Diluted Shares Outstanding... 197.6 197.6 ====== ======
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements. PECO Energy Company Unaudited Pro Forma Condensed Balance Sheet (In millions) As of September 30, 2000
As Pro Forma Pro Forma Filed Adjustments(2) Balance ------- -------------- --------- ASSETS Utility Plant, net ........... $ 5,196 $ (1,310) $ 3,886 Current Assets Cash and Temporary Cash Investments................ 169 (119) 50 Accounts Receivable, net.... 776 (512) 264 Inventories, at average cost....................... 232 (148) 84 Other Current Assets........ 180 (136) 44 ------- -------- ------- 1,357 (915) 442 ------- -------- ------- Deferred Debits and Other Assets Regulatory Assets........... 6,016 -- 6,016 Goodwill.................... 192 (192) -- Investments and Other Property, net.............. 722 (707) 15 Other....................... 184 (121) 63 ------- -------- ------- 7,114 (1,020) 6,094 ------- -------- ------- Total..................... $13,667 $ (3,245) $10,422 ======= ======== ======= CAPITALIZATION AND LIABILITIES Capitalization Common Stock Equity......... $ 1,727 (1,636) $ 91 Preferred and Preference Stock...................... 174 -- 174 Company Obligated Mandatorily Redeemable Preferred Securities. 128 -- 128 Long-Term Debt.............. 6,252 (382) 5,870 ------- ------- ------- 8,281 (2,018) 6,263 ------- ------- ------- Current Liabilities Notes Payable, Bank......... 284 (284) -- Accounts Payable............ 308 (150) 158 Other Current Liabilities... 938 (354) 584 ------- ------- ------- 1,530 (788) 742 ------- ------- ------- Deferred Credits and Other Liabilities Deferred Income Taxes....... 2,444 551 2,995 Unamortized Investment Tax Credits.................... 275 (245) 30 Other....................... 1,137 (745) 392 ------- -------- ------- 3,856 (439) 3,417 ------- -------- ------- Total..................... $13,667 $ (3,245) $10,422 ======= ======== =======
See accompanying Notes to Unaudited Pro Forma Condensed Financial Statements. Notes to Unaudited Pro Forma Condensed Financial Statements (1) To eliminate the income and expenses of the generation and ventures businesses for the entire applicable periods. (2) To transfer the assets and liabilities of the generation and ventures businesses included in the consolidated balance sheet of PECO as of September 30, 2000 to Exelon Generation and Exelon Enterprises, respectively. SIGNATURES 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. PECO ENERGY COMPANY /S/ Thomas P. Hill, Jr. --------------------------- Thomas P. Hill, Jr. Vice President & Chief Accounting Officer January 29, 2001 -----END PRIVACY-ENHANCED MESSAGE-----