-----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, EI+VAvPkY/cKCG6Ypu486Dk7510l7XbjpO9KU11nTYGqZ9azti3Ub4d9OA84EwUT JTIybFzpeY3TYjJE5SjrcQ== 0000008192-95-000061.txt : 19951121 0000008192-95-000061.hdr.sgml : 19951121 ACCESSION NUMBER: 0000008192-95-000061 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19951116 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATLANTIC CITY ELECTRIC CO CENTRAL INDEX KEY: 0000008192 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 210398280 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03559 FILM NUMBER: 95594375 BUSINESS ADDRESS: STREET 1: 6801 BLACK HORSE PIKE CITY: PLEASANTVILLE STATE: NJ ZIP: 08232 BUSINESS PHONE: 6096454100 MAIL ADDRESS: STREET 1: PO BOX 1264 CITY: PLEASANTVILLE STATE: NJ ZIP: 08232 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATLANTIC ENERGY INC CENTRAL INDEX KEY: 0000806393 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 222871471 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09760 FILM NUMBER: 95594376 BUSINESS ADDRESS: STREET 1: 6801 BLACK HORSE PIKE CITY: PLEASANTVILLE STATE: NJ ZIP: 08232 BUSINESS PHONE: 6096454500 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (x) Quarterly Report Pursuant to Section 13 OR 15 (d) of The Securities Exchange Act of 1934 For Quarter ended March 31, 1995 ( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission Registrant; State of Incorporation; IRS Employer File No. Address; and Telephone No. Identification No. 1-9760 Atlantic Energy, Inc. 22-2871471 (New Jersey) 6801 Black Horse Pike Pleasantville, NJ 08232 (609) 645-4500 1-3559 Atlantic City Electric Company 21-0398280 (New Jersey) P.O. Box 1264 6801 Black Horse Pike Pleasantville, NJ 08232 (609) 645-4100 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuers' classes of common stock, as of the latest practicable date: Atlantic Energy, Inc. 52,739,385 (as of May 10, 1995) All of the outstanding shares of Common Stock of Atlantic City Electric Company are owned by Atlantic Energy, Inc. Part I. Financial Information Item 1. Financial Statements CONSOLIDATED STATEMENT OF INCOME Thousands of Dollars Quarter and Year-to-Date Ended March 31, 1995 1994 (unaudited) Operating Revenues-Electric $218,626 $232,098 Operating Expenses: Energy 47,225 55,432 Purchased Capacity 46,145 30,858 Operations 37,638 35,535 Maintenance 6,823 9,092 Depreciation and Amortization 19,457 18,321 State Excise Taxes 24,759 26,396 Federal Income Taxes 6,197 12,640 Other Taxes 2,798 4,112 Total Operating Expenses 191,042 192,386 Operating Income 27,584 39,712 Other Income: Allowance for Equity Funds Used During Construction 484 909 Other-Net 1,611 1,729 Total Other Income 2,095 2,638 Interest Charges: Interest on Long Term Debt 14,597 15,879 Other Interest Expense 203 (75) Total Interest Charges 14,800 15,804 Allowance for Borrowed Funds Used During Construction (377) (625) Net Interest Charges 14,423 15,179 Less Preferred Stock Dividend Requirements of Subsidiary 3,787 4,309 Net Income $ 11,469 $ 22,862 Average Number of Shares of Common 53,475 53,743 Stock Outstanding (in thousands) Per Common Share: Earnings $ .21 $ .43 Dividends Declared $ .385 $ .385 Dividends Paid $ .385 $ .385 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CASH FLOWS Thousands of Dollars Quarter and Year-to-Date Ended March 31, 1995 1994 (unaudited) Cash Flows Of Operating Activities: Net Income $ 11,469 $ 22,862 Deferred Purchased Power Costs 3,921 3,645 Deferred Energy Costs (362) (6,266) Preferred Stock Dividend Requirements of Subsidiary 3,787 4,309 Depreciation and Amortization 19,457 18,321 Deferred Income Taxes-Net 1,582 16,123 Prepaid State Excise Taxes (73,958) (111,114) Employee Separation Costs (6,779) - Net Increase in Other Working Capital (12,526) (35,591) Other-Net (595) (1,031) Net Cash Used in Operating Activities (54,004) (88,742) Cash Flows Of Investing Activities: Utility Cash Construction Expenditures (19,502) (22,332) Leased Property (1,623) (1,308) Nuclear Decommissioning Trust Fund Deposits (1,606) (1,606) Other-Net 891 (1,099) Net Cash Used in Investing Activities (21,840) (26,345) Cash Flows Of Financing Activities: Proceeds from Long Term Debt 14,900 - Increase in Short Term Debt 101,550 72,900 Proceeds from Common Stock Issued - 3,348 Repurchases of Common Stock (18,381) - Dividends Declared on Preferred Stock (3,787) (4,309) Dividends Declared on Common Stock (20,391) (16,990) Other-Net 1,425 1,236 Net Cash Provided by Financing Activities 75,316 56,185 Net Decrease in Cash and Temporary Investments (528) (58,902) Cash and Temporary Investments, beginning of period 5,114 73,635 Cash and Temporary Investments, end of period $ 4,586 $ 14,733 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET Thousands of Dollars March 31, December 31, 1995 1994 (unaudited) ASSETS Electric Utility Plant: In Service $2,369,792 $2,348,873 Less Accumulated Depreciation 742,229 725,999 Net 1,627,563 1,622,874 Construction Work in Progress 106,636 110,078 Land Held for Future Use 6,941 6,941 Leased Property-Net 40,174 42,030 Electric Utility Plant-Net 1,781,314 1,781,923 Investments and Nonutility Property: Investment in Leveraged Leases 78,429 78,216 Nuclear Decommissioning Trust Fund 54,306 52,004 Nonutility Property and Equipment-Net 18,870 18,163 Other Investments and Funds 29,907 28,940 Total Investments and Non- Utility Property 181,512 177,323 Current Assets: Cash and Temporary Investments 4,586 5,114 Accounts Receivable: Utility Service 55,677 54,554 Miscellaneous 12,874 14,067 Allowance for Doubtful Accounts (3,300) (3,300) Unbilled Revenues 29,513 32,070 Fuel (at average cost) 23,857 28,030 Materials and Supplies (at average cost) 27,209 27,823 Working Funds 14,695 14,475 Deferred Energy Costs 11,361 10,999 Deferred Income Taxes 11,589 12,264 Prepaid State Excise Tax 81,635 5,287 Other 5,921 6,596 Total Current Assets 275,617 207,979 Deferred Debits: Unrecovered Purchased Power Costs 111,617 115,538 Recoverable Future Federal Income Taxes 85,854 85,854 Unrecovered State Excise Taxes 71,444 73,834 Unamortized Debt Costs 37,296 38,184 Other Regulatory Assets 50,729 47,055 Other 16,135 17,865 Total Deferred Debits 373,075 378,330 Total Assets $2,611,518 $2,545,555 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET Thousands of Dollars March 31, December 31, 1995 1994 (unaudited) LIABILITIES AND CAPITALIZATION Capitalization: Common Shareholders' Equity: Common Stock $ 575,108 $ 593,475 Retained Earnings 240,192 249,181 Total Common Shareholders' Equity 815,300 842,656 Preferred Stock of Atlantic Electric: Not Subject to Mandatory Redemption 40,000 40,000 Subject to Mandatory Redemption 149,250 149,250 Long Term Debt 766,071 778,288 Total Capitalization (excluding current portion) 1,770,621 1,810,194 Current Liabilities: Cumulative Preferred Stock Redemption Requirement 12,250 12,250 Long Term Debt - Current Portion 28,147 1,000 Short Term Debt 110,150 8,600 Accounts Payable 51,150 66,080 Taxes Accrued 13,482 10,409 Interest Accrued 15,506 19,168 Dividends Declared 24,245 24,681 Accrued Employee Separation Costs 19,821 26,600 Other 15,388 19,813 Total Current Liabilities 290,139 188,601 Deferred Credits and Other Liabilities: Deferred Income Taxes 414,115 412,574 Deferred Investment Tax Credits 51,013 51,646 Capital Lease Obligations 39,240 41,111 Other 46,390 41,429 Total Deferred Credits and Other Liabilities 550,758 546,760 Total Liabilities and Capitalization $2,611,518 $2,545,555 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Atlantic Energy, Inc. (the Company or AEI) is a public utility holding company. Its principal subsidiary is Atlantic City Electric Company (ACE), an electric utility. On January 1, 1995, AEI transferred direct ownership of its nonutility companies to a new subsidiary, Atlantic Energy Enterprises, Inc. (AEE). AEE will serve as the holding company for the following nonutility companies: Atlantic Generation, Inc. (AGI), ATE Investment, Inc. (ATE), Atlantic Southern Properties, Inc. (ASP), Atlantic Energy Technology, Inc. (AET), and Atlantic Thermal Systems, Inc., (ATS). The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly- owned. All significant intercompany accounts and transactions have been eliminated in consolidation. The results of operations of the nonutility companies are not significant and are classified under Other Income in the Consolidated Statement of Income. These consolidated financial statements reflect all normal, recurring adjustments and accruals which, in the opinion of management, are necessary for a fair presentation of the consolidated financial statements presented. The notes to the consolidated financial statements accompanying the Company's 1994 Annual Report to Shareholders and on Form 10-K filed with the Securities and Exchange Commission should be read in conjunction with this report. Note 1 of these annual reports specifically identifies the significant accounting policies of the Company. The consolidated balance sheet contained in the financial statements presented herein that is labeled December 31, 1994 was derived from the audited consolidated balance sheet presented in the 1994 Annual Report to Shareholders and Form 10-K. Certain prior year amounts have been reclassified to conform to the current year reporting. 2. Components of Federal Income Tax expense are as follows (in thousands of dollars): Quarter and Year-to-Date Ended March 31, 1995 1994 (unaudited) Current $ 5,151 $(3,123) Deferred 1,534 16,086 Total Federal Income Tax Expense 6,685 12,963 Less Amounts Included in Other Income 488 323 Federal Income Taxes Included in Operating Expenses $ 6,197 $12,640 A reconciliation of the expected Federal income taxes compared to the reported Federal Income Tax expense computed by applying the statutory rate follows: Tax Computed at the Statutory Rate of 35% $ 7,680 $14,047 Utility Plant Basis Differences 362 1,110 Investment Tax Credits (637) (634) Other-Net (720) (1,560) Total Federal Income Tax Expense $ 6,685 $12,963 Effective Federal Income Tax Rate 30% 32% The Internal Revenue Service has proposed certain adjustments in taxes for 1984 through 1986 which would increase the Federal income tax liability by approximately $5 million. The Company is protesting certain of the proposed adjustments, and in the opinion of management, the ultimate outcome will not have a material effect on the Company's financial position. 3. On April 17, 1995, ACE filed a petition with the New Jersey Board of Public Utilities (BPU) requesting a $37.0 million increase in annual levelized energy clause (LEC) revenues. The petition requests that the proposed LEC rates be made effective for service rendered on and after June 1, 1995. The requested LEC increase is due primarily to increased costs associated with the purchase of energy and capacity from Independent Power Producers (IPP's). ACE has BPU approved contracts with four IPP's. This LEC request represents the first filing that includes a full year of contract costs for all four IPP's. Though ACE's petition supports a $67.6 million increase in LEC revenues, ACE has voluntarily reduced its request by $30.6 million in order to keep its rates competitive. This reduction was accomplished by offering to forego the recovery of $10 million in LEC revenues under the Southern New Jersey Economic Initiative tariff rider and to defer recovery of $20.6 million of LEC costs. ACE will seek full recovery of the $20.6 million deferred LEC costs in its next LEC filing. On November 1, 1994, ACE filed a Motion with the BPU for reconsideration of its order in the matter of the Generic Proceeding on the double recovery of Capacity Costs. By its order the BPU found that the Ratepayer Advocate had reserved its right to argue for an adjustment to the LEC rates approved in the 1992,1993 and 1994 LEC proceedings. ACE's Motion argues that the Stipulation settling the 1992 LEC and the BPU's order approving that Stipulation did not include language granting such rights to the Ratepayer Advocate. On March 22, 1995, ACE's Motion was denied by the BPU on the grounds that this issue was previously addressed in its initial order. At this time ACE has not determined if it will appeal the BPU's decision in this matter. As to the Generic Proceeding, evidentiary hearings are scheduled throughout 1995 and a final decision is expected in 1996. ACE cannot predict the outcome of that decision at this time. 4. At March 31, 1995, ACE had outstanding $110.2 million of short term debt with maturities of one to four months. ACE's Cumulative Preferred Stock and long term debt securities are not widely held and generally trade infrequently. Their estimated aggregate fair market values at March 31, 1995 is approximately $193 million and $725 million, respectively. At March 31, 1995, ATE had outstanding $14.9 million from its revolving credit and term loan facility. The estimated aggregate fair market value at March 31, 1995 of ATE's Senior Notes was approximately $15 million. 5. As of March 31, 1995 and December 31, 1994, 53,138,311 and 54,155,245 shares of common stock were outstanding, respectively. During the first quarter of 1995, the Company reacquired and retired 1,018,600 shares of its common stock. The prices paid for these shares ranged from $17.625 to $18.875 per share, for a total cost of $18.4 million. Funding for the stock acquisition has been provided in part by advances in the form of notes payable from subsidiary companies. As of March 31, 1995 notes payable from subsidiaries amounted to $12.0 million. Shares issued during 1995 were through the Company's Equity Incentive Plan. CONSOLIDATED STATEMENT OF INCOME Thousands of Dollars Quarter and Year-to-Date Ended March 31, 1995 1994 (unaudited) Operating Revenues-Electric $218,666 $232,134 Operating Expenses: Energy 47,225 55,432 Purchased Capacity 46,145 30,858 Operations 37,690 35,681 Maintenance 6,830 9,114 Depreciation and Amortization 19,457 18,321 State Excise Taxes 24,759 26,396 Federal Income Taxes 6,197 12,640 Other Taxes 2,798 4,112 Total Operating Expenses 191,101 192,554 Operating Income 27,565 39,580 Other Income: Allowance for Equity Funds Used During Construction 484 909 Miscellaneous Income-Net 2,153 1,820 Total Other Income 2,637 2,729 Interest Charges: Interest on Long Term Debt 14,597 15,879 Other Interest Expense 203 (75) Total Interest Charges 14,800 15,804 Allowance for Borrowed Funds Used During Construction (377) (625) Net Interest Charges 14,423 15,179 Net Income 15,779 27,130 Less Preferred Dividend Requirements 3,787 4,309 Balance Available for Common Shareholder $ 11,992 $ 22,821 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CASH FLOWS Thousands of Dollars Quarter and Year-to-Date Ended March 31, 1995 1994 (unaudited) Cash Flows Of Operating Activities: Net Income $ 15,779 $ 27,130 Deferred Purchased Power Costs 3,921 3,645 Deferred Energy Costs (362) (6,266) Depreciation and Amortization 19,457 18,321 Deferred Federal Income Taxes-Net 833 15,600 Prepaid State Excise Taxes (73,958) (111,114) Employee Separation Costs (6,779) - Net Increase in Other Working Capital (12,533) (36,640) Other-Net 666 (455) Net Cash Used in Operating Activities (52,976) (89,779) Cash Flows Of Investing Activities: Cash Construction Expenditures (19,502) (22,332) Leased Property (1,624) (1,308) Nuclear Decommissioning Trust Fund Deposits (1,606) (1,606) Notes Receivable - Affiliates (6,685) - Other-Net 2,452 (1,073) Net Cash Used in Investing Activities (26,965) (26,319) Cash Flows Of Financing Activities: Increase in Short Term Debt 101,550 72,900 Capital Contributions 328 19,000 Dividends Declared on Preferred Stock (3,787) (4,309) Dividends Declared on Common Stock (20,458) (20,729) Other-Net 1,478 1,236 Net Cash Provided by Financing Activities 79,111 68,098 Net Decrease in Cash and Temporary Investments (830) (48,000) Cash and Temporary Investments, beginning of period 3,459 60,243 Cash and Temporary Investments, end of period $ 2,629 $ 12,243 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET Thousands of Dollars March 31, December 31, 1995 1994 (unaudited) ASSETS Electric Utility Plant: In Service $2,369,792 $2,348,873 Less Accumulated Depreciation 742,229 725,999 Net 1,627,563 1,622,874 Construction Work in Progress 106,636 110,078 Land Held for Future Use 6,941 6,941 Leased Property-Net 40,174 42,030 Electric Utility Plant-Net 1,781,314 1,781,923 Investments and Nonutility Property Nuclear Decommissioning Trust Fund 54,306 52,004 Other Property, Investments and Funds 1,883 3,139 Total Investments and Nonutility Property 56,189 55,143 Current Assets: Cash and Temporary Investments 2,629 3,459 Accounts Receivable: Utility Service 55,677 54,554 Miscellaneous 14,964 15,804 Allowance for Doubtful Accounts (3,300) (3,300) Unbilled Revenues 29,513 32,070 Fuel (at average cost) 23,857 28,030 Materials and Supplies (at average cost) 27,209 27,823 Working Funds 14,695 14,475 Deferred Energy Costs 11,361 10,999 Deferred Income Taxes 11,484 12,141 Prepaid State Excise Taxes 81,635 5,287 Notes Receivable from Affiliates 6,685 - Other 4,914 6,473 Total Current Assets 281,323 207,815 Deferred Debits: Unrecovered Purchased Power Costs 111,617 115,538 Recoverable Future Federal Income Taxes 85,854 85,854 Unrecovered State Excise Taxes 71,444 73,834 Unamortized Debt Costs 37,201 38,083 Other Regulatory Assets 50,729 47,055 Other 14,713 16,071 Total Deferred Debits 371,558 376,435 Total Assets $2,490,384 $2,421,316 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET Thousands of Dollars March 31, December 31, 1995 1994 (unaudited) LIABILITIES AND CAPITALIZATION Capitalization: Common Shareholder's Equity: Common Stock $ 54,963 $ 54,963 Premium on Capital Stock 231,081 231,081 Contributed Capital 263,077 262,749 Capital Stock Expense (2,300) (2,300) Retained Earnings 241,301 249,767 Total Common Shareholder's Equity 788,122 796,260 Cumulative Preferred Stock: Not Subject to Mandatory Redemption 40,000 40,000 Subject to Mandatory Redemption 149,250 149,250 Long Term Debt 751,071 763,288 Total Capitalization (excluding current portion) 1,728,443 1,748,798 Current Liabilities: Cumulative Preferred Stock Redemption Requirement 12,250 12,250 Long Term Debt - Current Portion 12,247 - Short Term Debt 110,150 8,600 Accounts Payable 51,098 65,632 Federal Income Taxes Payable-Affiliate 10,960 9,537 Other Taxes Accrued 4,404 3,490 Interest Accrued 15,108 19,048 Dividends Declared 24,245 24,681 Accrued Employee Separation Costs 19,821 26,600 Other 14,791 19,134 Total Current Liabilities 275,074 188,972 Deferred Credits and Other Liabilities: Deferred Income Taxes 351,506 350,697 Deferred Investment Tax Credits 51,013 51,646 Capital Lease Obligations 39,228 41,102 Other 45,120 40,101 Total Deferred Credits and Other Liabilities 486,867 483,546 Total Liabilities and Capitalization $2,490,384 $2,421,316 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. Atlantic City Electric Company (the Company) is a wholly- owned subsidiary of Atlantic Energy, Inc. The consolidated financial statements include the accounts of the Company and its subsidiary, which is wholly-owned. All significant intercompany accounts and transactions have been eliminated in consolidation. These consolidated financial statements reflect all normal, recurring adjustments and accruals which, in the opinion of management, are necessary for a fair presentation of the consolidated financial statements presented. The notes to the consolidated financial statements accompanying the Company's 1994 Annual Report on Form 10-K filed with the Securities and Exchange Commission should be read in conjunction with this report. Note 1 of these annual reports specifically identifies the significant accounting policies of the Company. The consolidated balance sheet contained in the financial statements presented herein that is labeled December 31, 1994 was derived from the audited consolidated balance sheet presented in the 1994 Form 10-K. Certain prior year amounts have been reclassified to conform to the current year reporting. 2. The components of Federal Income Tax expense are as follows (in thousands of dollars): Quarter and Year-to-Date Ended March 31, 1995 1994 (unaudited) Current $ 6,071 $(2,541) Deferred 833 15,600 Total Federal Income Tax Expense 6,904 13,059 Less Amounts Included in Other Income 707 419 Federal Income Taxes Included in Operating Expenses $ 6,197 $12,640 A reconciliation of the expected Federal income taxes compared to the reported Federal Income Tax expense computed by applying the statutory rate follows: Tax Computed at the Statutory Rate of 35% $ 7,939 $14,067 Utility Plant Basis Differences 362 1,110 Investment Tax Credits (634) (634) Other-Net (763) (1,484) Total Federal Income Tax Expense $ 6,904 $13,059 Effective Federal Income Tax Rate 30% 32% The Internal Revenue Service has proposed certain adjustments in taxes for 1984 through 1986 which would increase the Federal income tax liability by approximately $5 million. The Company is protesting certain of the proposed adjustments, and in the opinion of management, the ultimate outcome will not have a material effect on the Company's financial position. 3. On April 17, 1995, the Company filed a petition with the New Jersey Board of Public Utilities (BPU) requesting a $37.0 million increase in annual levelized energy clause (LEC) revenues. The petition requests that the proposed LEC rates be made effective for service rendered on and after June 1, 1995. The requested LEC increase is due primarily to increased costs associated with the purchase of energy and capacity from Independent Power Producers (IPP's). The Company has BPU approved contracts with four IPP's. This LEC request represents the first filing that includes a full year of contract costs for all four IPP's. Though the Company's petition supports a $67.6 million increase in LEC revenues, the Company has voluntarily reduced its request by $30.6 million in order to keep its rates competitive. This reduction was accomplished by offering to forego the recovery of $10 million in LEC revenues under the Southern New Jersey Economic Initiative tariff rider and to defer recovery of $20.6 million of LEC costs. The Company will seek full recovery of the $20.6 million deferred LEC costs in its next LEC filing. On November 1, 1994, the Company filed a Motion with the BPU for reconsideration of its order in the matter of the Generic Proceeding on the double recovery of Capacity Costs. By its order the BPU found that the Ratepayer Advocate had reserved its right to argue for an adjustment to the LEC rates approved in the 1992,1993 and 1994 LEC proceedings. The Company's Motion argues that the Stipulation settling the 1992 LEC and the BPU's order approving that Stipulation did not include language granting such rights to the Ratepayer Advocate. On March 22, 1995, the Company's Motion was denied by the BPU on the grounds that this issue was previously addressed in its initial order. At this time the Company has not determined if it will appeal the BPU's decision in this matter. As to the Generic Proceeding, evidentiary hearings are scheduled throughout 1995 and a final decision is expected in 1996. The Company cannot predict the outcome of that decision at this time. 4. At March 31, 1995, the Company had outstanding $110.2 million of short term debt with maturities of one to four months. The Company's Cumulative Preferred Stock and long term debt securities are not widely held and generally trade infrequently. Their estimated aggregate fair market values at March 31, 1995 is approximately $193 million and $725 million, respectively. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (unaudited) The following is management's discussion and analysis of significant factors which affected the Company's interim financial condition and results of operations. To properly assess and evaluate the Company's performance one should read, in conjunction with this report, the Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Company's 1994 Annual Report to Shareholders (pages 25-33). ACE is the principal subsidiary of the Company and the following discussion focuses primarily on ACE. LIQUIDITY AND CAPITAL RESOURCES The operating needs of the Company, representing those of the consolidated group, are dependent upon the results of its subsidiaries, principally those of ACE. The Company reacquired and retired 1,018,600 shares of its common stock during the first quarter of 1995 for a total cost of $18.4 million. Funding for the stock acquisition has been provided in part by notes payable from its subsidiary companies. As of March 31, 1995 notes payables by AEI to subsidiaries amounted to $12.0 million. In the first quarter of 1995, ACE issued $101.6 million in short term debt, all of which consisted of notes payable to banks. Proceeds were largely used for the remittance of the annual state excise tax payment as discussed below. During the same period ATE increased the debt outstanding from its revolving credit and term loan facility by $13.9 million to $14.9 million. Proceeds were used to support the activities of affiliated companies. In March 1995, ACE made its annual payment to the State of New Jersey in the amount of $98.7 million for state excise taxes. This payment was responsible for causing a net cash usage in operating activities, as indicated on the Consolidated Statement of Cash Flows. RESULTS OF OPERATIONS Net income and earnings per share decreased for the quarter and year-to-date ended March 31, 1995 by 49.8% and 51.2%, respectively. The decrease in year-to-date net income is primarily due to the decline in sales of electricity when compared to the same period of 1994. ACE's Southern New Jersey Economic Initiative has also contributed to the reduction in the current year earnings because recovery of otherwise eligible energy costs were foregone. Significant factors contributing to these changes are explained below. Unless otherwise specified, changes are in terms of the current year period compared to the corresponding prior year period. Utility Revenues Changes in Operating Revenues-Electric are disclosed in the following table: Quarter and Year-To-Date Ended March 31, 1995 (Thousands of Dollars) Base Revenues $ (1,263) Levelized Energy Clauses 13,521 Kilowatt-hour Sales (19,365) Unbilled Revenues 5,654 Sales for Resale (12,056) Other Revenues 37 Total $(13,472) Levelized Energy Clause (LEC) Revenues for the period increased due to rate increases in July 1994 of $55 million on an annual basis. Changes in Kilowatt-hour Sales are explained in the following section 'Billed Sales to Ultimate Utility Customers'. The changes in Unbilled Revenues are a result of the amount of kilowatt-hours consumed but not yet billed by ultimate customers at the end of the respective periods, which are affected by weather and economic conditions and the corresponding price per kilowatt-hour. The changes in Sales for Resale to wholesale customers are a function of ACE's energy mix strategy, which in turn is dependent upon ACE's needs for energy, the energy needs of other utilities participating in the regional power pool of which ACE is a member, and the sources and prices of energy available. The drop in Sales for Resale reflects the decrease in the demands of the regional power pool due to the mild winter conditions during the current year when compared to the extreme weather conditions of 1994. Billed Sales to Ultimate Utility Customers Changes in billed kilowatt-hour sales are generally due to changes in the average number of customers and average customer use, which is affected by economic and weather conditions. Energy sales statistics, stated as percentage changes from the corresponding periods of the prior year, are shown below. Quarter and Year-To-Date Ended March 31, 1995 Average Customer Class Sales Cust Use Residential (12.7)% 1.2% (13.7)% Commercial (3.2) 1.9 ( 5.0) Industrial (11.4) 1.3 (12.6) Total ( 9.0) 1.3 (10.1) The large decreases in Residential sales and average use for the period is due to significantly above normal temperatures experienced in the current period in contrast to the well below normal temperatures in the same period of 1994. Commercial sales also decreased due to the temperature contrast noted above. Approximately one-half of the increase in the number of commercial customers is due to the continuing popularity of ACE's night lighting programs. Industrial sales were down primarily as a result of a former customer taking energy service from an independent power producer. Expenses Total Operating Expenses for the current period decreased by 0.7%. Excluding depreciation and taxes, Total Operating Expenses increased by 5.3%. Energy expense reflects the amount of energy needed to meet load requirements, as well as the various fuel and purchased energy sources used and the operation of the LEC. Changes in costs reflect the varying availability of low-cost generation from ACE- owned and purchased energy sources and in the unit prices of the energy sources used, as well as changes in the needs of other utilities participating in the regional power pool. The cost of energy is recovered from customers primarily through the operation of the LEC. Until 1994, earnings were generally not affected by Energy costs because these costs are adjusted to match the associated LEC revenues. In any period, the actual amount of LEC revenue recovered from customers will be greater or less than the actual amount of energy cost incurred and eligible for recovery in that period. Such respective overrecovery or underrecovery of energy costs is recorded on the consolidated balance sheet as a liability or asset as appropriate. Amounts in the balance sheet are recognized in the consolidated statement of income within Energy expense during the period in which they are subsequently recovered through the LECs. ACE was underrecovered by $11.4 million at March 31, 1995 as compared to $11 million at December 31, 1994. Energy expense decreased by 14.8% for the current period. Production-related energy costs decreased by 22.1% mostly due to the reduction in the generation of ACE's wholly-owned stations because of the extreme mild weather conditions in 1995 compared to 1994. This decrease was offset by the effects of ACE's Southern New Jersey Economic Initiative which foregoes recovery of otherwise eligible energy costs. The Southern New Jersey Economic Initiative reduced after tax income by $5.0 million in the first quarter of 1995. Purchased Capacity expense reflects contract payments for generating capacity owned by others. The 49.5% increase in Purchased Capacity expense reflects the current period charges for capacity supplied by a cogeneration facility which became operational in the last quarter of 1994. Sources of Energy by Fuel Source for the current period are as follows: Quarter and Year-to-Date Ended March 31, 1995 Coal 36% Nuclear 24 Interchanged and Purchased 16 Nonutility Purchased 23 Oil and Natural Gas 1 Total 100% Operations expense increased 5.5% due to the annual billing for the settlement of prior year administrative and general costs from ACE's jointly owned nuclear facilities. The 1994 settlement of this annual billing resulted in a reduction in Operations expense. Maintenance expense decreased 25.1% for the period from the previous year due to cost saving measures in maintenance activities. The 6.2% increase in Depreciation Expense is the result of an increase in ACE's electric plant in service. The decrease in State Excise Tax Expense of 6.2% from the previous year reflects the decrease in energy sales for the current period. Federal Income Tax Expense decreased 51% due to the reduction in pretax income for the current quarter. In December 1994, ACE recorded the expected costs for a voluntary employee separation program. A total of 319 ACE employees volunteered for the separation package. A majority of the employee separations occurred as of March 1, 1995, with the remaining separations to take place by December 1995. The balance of the accrued separation costs on the Consolidated Balance Sheet at March 31, 1995 is $19.8 million compared to $26.6 million at December 31, 1994. Settlement of this obligation is not expected to be completed until the latter part of 1996. NONUTILITY ACTIVITIES On January 1, 1995, AEI transferred direct ownership of its nonutility companies to a new subsidiary, Atlantic Energy Enterprises, Inc. (AEE). AEE will serve as the holding company for all of the Company's nonutility subsidiaries. Nonutility operations, which include AEI parent, for the quarter and year-to-date March 31, 1995 and 1994 resulted in a net loss of $523 thousand and net income of $41 thousand, respectively. Operations of AEE and subsidiaries for the period resulted in a net loss of $196 thousand for 1995 and net income of $98 thousand in 1994. The 1995 loss is largely due to administrative and general costs incurred for the development of nonutility businesses, offset in part by increased revenues of cogeneration facilities. On March 15, 1995, AEE joined with a previously unaffiliated company to form Atlantic CNRGY LLC (Limited Liability Corporation). This joint venture will develop natural gas marketing opportunities with commercial and industrial users. AEE's initial investment was not significant. Operating activities are expected to begin during the second quarter of 1995. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (unaudited) The following is management's discussion and analysis of significant factors which affected the Company's interim financial condition and results of operations. To properly assess and evaluate the Company's performance one should read, in conjunction with this report, the Management's Discussion and Analysis of Financial Condition and Results of Operations included in the Company's 1994 Annual Report on Form 10-K filed with the Securities and Exchange Commission. LIQUIDITY AND CAPITAL RESOURCES In the first quarter of 1995, the Company issued $101.6 million in short term debt, all of which consisted of notes payable to banks. Proceeds were used largely for the remittance of the annual state excise tax payment as discussed below. During the first quarter of 1995, the Company advanced its parent company $6.7 million in the form of notes receivable. In March 1995, the Company made its annual payment to the State of New Jersey in the amount of $98.7 million for state excise taxes. This payment was responsible for causing a net cash usage in operating activities, as indicated on the Consolidated Statement of Cash Flows. RESULTS OF OPERATIONS Net Income decreased for the quarter by 41.8% from the corresponding period of 1994 due to the decline in sales of electricity. The Company's Southern New Jersey Economic Initiative has also contributed to the reduction in the current year earnings because recovery of otherwise eligible energy costs were foregone. Significant factors contributing to these changes are explained below. Unless otherwise specified, changes are in terms of the current year period compared to the corresponding prior year period. Revenues Changes in Operating Revenues-Electric are disclosed in the following table: Quarter and Year-To-Date Ended March 31, 1995 (Thousands of Dollars) Base Revenues $ (1,259) Levelized Energy Clauses 13,521 Kilowatt-hour Sales (19,365) Unbilled Revenues 5,654 Sales for Resale (12,056) Other Revenues 37 Total $(13,468) Levelized Energy Clause (LEC) Revenues for the period increased due to rate increases in July 1994 of $55 million on an annual basis. Changes in Kilowatt-hour Sales are explained in the following section 'Billed Sales to Ultimate Customers'. The change in Unbilled Revenues are a result of the amount of kilowatt-hours consumed but not yet billed by ultimate customers at the end of the respective periods, which are affected by weather and economic conditions and the price per kilowatt-hour in effect. The changes in Sales for Resale to wholesale customers are a function of the Company's energy mix strategy, which in turn is dependent upon its needs for energy, the energy needs of other utilities participating in the regional power pool of which the Company is a member, and the sources and prices of energy available. The drop in Sales for Resale reflects the decrease in the demands of the regional power pool due to the mild winter conditions during the current year when compared to the extreme weather conditions of 1994. Billed Sales to Ultimate Customers Changes in billed kilowatt-hour sales are generally due to changes in the average number of customers and average customer use, which is affected by economic and weather conditions. Energy sales statistics, stated as percentage changes from the corresponding period of the prior year, are shown below. Quarter and Year-To-Date Ended March 31, 1995 Average Customer Class Sales Cust Use Residential (12.7)% 1.2% (13.7)% Commercial ( 3.2) 1.9 ( 5.0) Industrial (11.4) 1.3 (12.6) Total ( 9.0) 1.3 (10.1) The large decreases in Residential sales and average use for the period ended is due to significantly above normal temperatures experienced in the current period in contrast to the well below normal temperatures in the same period of 1994. Commercial sales also decreased due to the temperature contrast noted above. Approximately one-half of the increase in the number of commercial customers is due to the continuing popularity of ACE's night lighting programs. Industrial sales were down primarily as a result of a former customer taking energy service from an independent power producer. Expenses Total Operating Expenses for the current period ended March 31, 1995 decreased by 0.8% compared to the same period of the prior year. Excluding depreciation and taxes, Total Operating Expenses increased by 5.2%. Energy expense reflects the amount of energy needed to meet load requirements, as well as the various fuel and purchased energy sources used and the operation of the LEC. Changes in costs reflect the varying availability of low-cost generation from Company-owned and purchased energy sources and in the unit prices of the energy sources used, as well as changes in the needs of other utilities participating in the regional power pool. The cost of energy is recovered from customers primarily through the operation of the LEC. Until 1994, earnings were generally not affected by Energy expense because these costs are adjusted to match the associated LEC revenues. In any period, the actual amount of LEC revenue recovered from customers will be greater or less than the actual amount of energy cost incurred and eligible for recovery in that period. Such respective overrecovery or underrecovery of energy costs is recorded on the consolidated balance sheet as a liability or asset as appropriate. Amounts in the balance sheet are recognized in the consolidated statement of income within Energy expense during the period in which they are subsequently recovered through the LEC. The Company was underrecovered by $11.4 million at March 31, 1995 as compared to $11 million at December 31, 1994. Energy expense decreased by 14.8% for the current period. Production-related energy costs decreased by 22.1% mostly due to the reduction in the generation of the Company's wholly-owned stations because of the extreme mild weather conditions in 1995 compared to 1994. This decrease was offset by the effects of the Company's Southern New Jersey Economic Initiative which forgoes recovery of otherwise eligible energy costs. The Southern New Jersey Economic Initiative reduced after tax income by $5.0 million in the first quarter of 1995. Purchased Capacity expense reflects contract payments for generating capacity owned by others. The 49.5% increase in Purchased Capacity expense reflects the current period charges for capacity supplied by a cogeneration facility which became operational in the last quarter of 1994. Sources of Energy by Fuel Source for the current period are as follows: Quarter and Year-to-Date Ended March 31, 1995 Coal 36% Nuclear 24 Interchanged and Purchased 16 Nonutility Purchased 23 Oil and Natural Gas 1 100% Operations expense increased 5.6% due to the annual billing for the settlement of prior year administrative and general costs from the Company's jointly owned nuclear facilities. The 1994 settlement of this annual billing resulted in a reduction of Operations expense. Maintenance expense decreased 25.1% for the period from the previous year due to cost saving measures in maintenance activities. The 6.2% increase in Depreciation Expense is the result of an increase in the Company's electric plant in service. The decrease in State Excise Tax Expense of 6.2% from the previous year reflects the decrease in energy sales for the current period. Federal Income Tax Expense decreased 51% due to the reduction in pretax income for the current quarter. In December 1994, the Company recorded the expected costs for a voluntary employee separation program. A total of 319 of the Company's employees volunteered for the separation package. A majority of the employee separations occurred as of March 1, 1995, with the remaining separations to take place by December 31, 1995. The balance of the accrued separation costs on the Consolidated Balance Sheet at March 31, 1995 is $19.8 million compared to $26.6 million at December 31, 1994. Settlement of this obligation is not expected to be completed until the latter part of 1996. Part II. Other Information Item 1. Legal Proceedings Certain developments have occurred in connection with matters previously reported under Part I, Item 1-Business in the Annual Report on Form 10-K for the fiscal year ended December 31, 1994 for Atlantic Energy, Inc. (AEI) and Atlantic City Electric Company (ACE). In addition, certain new information is contained herein. Rate Matters ACE's rates for electric service at retail are subject to the approval of the New Jersey Board of Public Utilities (BPU). Reference is made to Note 3 of the Notes to Financial Statements for AEI and ACE filed herewith for information pertaining to the petition filed with the New Jersey Board of Public Utilities (BPU) for changes in the Levelized Energy Clause (LEC) revenues, and the issue of the double recovery of capacity costs. On March 27, 1995, the BPU approved a one-year extension in the enrollment period of the Company's Redevelopment Program Service (RPS). The RPS, approved by the BPU in May 1994, provides incentive pricing for new or expanding commercial customer load. In its order, the BPU found that the RPS has been a valuable incentive for expanding and attracting businesses to the region. The enrollment deadline, set to expire on April 30, 1995, was extended to April 30, 1996 for service commencing on or before April 30, 1998. On March 30, 1995, legislation (S-1940) was introduced in the New Jersey State Senate that would permit natural gas and electric utility companies to offer discounts and alternate ratemaking to businesses that are considering buying power from independent energy producers or moving their operations from the State of New Jersey because of high energy costs. Under S-1940, the BPU would set standards for the maximum term of a discount, minimum prices and filing requirements. Once an agreement is reached between a business and an electric utility, a discount in electric rates would go into effect unless rejected by the BPU. The legislation would not permit recovery of lost revenues from other ratepayers until the next base-rate case filing, and then only under two conditions: 1) if the utility can demonstrate that the business discount benefitted all ratepayers, that is, the business would have left the utility's system and caused a rate hike for the remaining ratepayers; and 2) if the discount provides some other tangible economic benefit to the State, such as creating or maintaining jobs. The legislation was referred to the Senate Natural Resources, Trade and Economic Development Committee; ACE cannot predict the Committee's timing or action with regard to S-1940. ACE supports S-1940 as a way to retain and expand business in the State and to encourage an equitable transition to a restructured industry which includes competition between utilities, IPPs and power marketers. Item 5. Other Information On March 29, 1995, the Federal Energy Regulatory Commission issued a Notice of Proposed Rulemaking (NOPR) regarding several key electric utility industry issues such as transmission access, transmission pricing and recovery guidelines for stranded costs stemming from wholesale transactions. According to the NOPR, within 60 days of passage of a final rule, which is expected before year-end 1995, utilities must file nondiscriminatory open- access transmission tariffs that may be utilized by any participant in the wholesale market, such as utilities, nonutility generators, power marketers, municipalities and/or cooperatives. The NOPR further includes the requirement that utilities take service under the tariffs for their own wholesale sales and purchases of electric energy. The NOPR would permit utilities to recover stranded costs that may be incurred when a customer stops buying power from the utility and, instead, uses the utility's transmission service to obtain power from another source. Initially, the Company is required to file two generic pro-forma tariffs which would take effect under rates established by the NOPR; one tariff will represent network service, while a second tariff will provide point-to-point service. Utilities, and others may then file for modified tariffs. ACE is currently reviewing the NOPR and intends to provide comments during the appropriate comment period. At this time, pro-forma tariffs are being developed and it is not known what effect open access will have on ACE's customer base. By letter dated March 16, 1995, the Company has notified Pennsylvania Power & Light Company (PP&L) that the capacity and energy sales agreement dated June 1983 will be terminated effective March 1998. The agreement, for the purchase of 125 megawatts (MW), was originally scheduled through September 30, 2000. For the years 1998 through 2000, the expected capacity costs under the agreement were $12.6 million, $14.2 million and $12.3 million, respectively. To replace the PP&L arrangement for capacity and energy, the Company has signed a letter of intent with PECO Energy (PECO) for the period beginning March 1, 1998 through May 31, 2000. Preliminary savings estimates are approximately $7 million based on lower payments for capacity and higher availability of energy. Nonutility Generation The Pedricktown Cogeneration Limited Partnership (PCLP), in which Atlantic Generation, Inc. owns a 50% interest, operates a 116 megawatt gas-fired cogeneration facility located in Pedricktown, New Jersey. This facility began commercial operation in March 1992 supplying 10 MW of electricity and byproduct steam to GEON (formerly B.F.Goodrich). Under the terms of a BPU-approved purchase power agreement, 106 MW of capacity and energy is being supplied to ACE. An amendment to the agreement, designed to reduce contract costs and increase operating efficiencies, was executed in July 1994 and approved by the BPU in March 1995. The contract amendment reduces the energy component of the contract payment resulting in a more marketable commodity, increases the available capacity of the facility to ACE from 106 MW to 116 MW and returns GEON to ACE as a retail electric customer. The Company estimates that GEON will account for approximately $6.5 million in annual electric revenue and is expected to return to ACE's system in the beginning of the third quarter of 1995. Nuclear Salem ACE has been advised by Public Service Electric & Gas Company (PS), operator of the Salem Nuclear Generating Station (Salem), that on March 21, 1995, representatives of the Nuclear Regulatory Commission (NRC) staff met with the Boards of Directors of Public Service Enterprise Group and PS to reiterate the previously expressed concerns with regard to Salem's operations, including: plant materiel conditions that required operators to operate various systems manually, maintenance backlog, root cause analysis, quality assurance, engineering, repeat equipment failures, procedure adherence, four events over the past four years causing the NRC to conduct four Augmented Inspection Team reviews, leadership, employee concerns, attention to balance of plant, management oversight and vertical communication with employees and oversight of contractors. The NRC staff acknowledged that PS had made efforts to improve Salem's operations, including making senior management changes, but indicated that demonstrated sustained results have not yet been achieved. PS also advised that in March 1995, the Institute of Nuclear Power Operations (INPO) reported an assessment of Salem's operations that indicated that improvement was needed in a wide range of areas, with significant improvement required in areas such as equipment performance and plant materiel conditions, management and supervision, engineering activities and training. ACE has been advised that on April 21, 1995, the NRC commenced an inspection, expected to take about four weeks, to assess how effectively Salem is currently performing from a safety perspective in the areas of problem identification; prioritizing and conducting work on plant equipment; and management oversight of plant performance. This inspection is currently ongoing. PS advised ACE that PS is in agreement with the assessment of the NRC staff, as well as that of the INPO, that Salem's operations must be further improved in order to assure continued reliable operation. PS is fully committed to take the actions needed to improve Salem's operations and is committed to safe and conservative operations before production. PS cannot predict what further action, if any, the NRC may take with respect to Salem's operations. ACE owns a 7.41% interest in the Salem station. ACE has been advised that on April 12, 1995, PS received notification of a Level II violation including an $80,000 civil penalty for an incident that occurred in December 1992 in which two former Salem station managers did not properly respond to safety concerns raised by two employees. The incident was thoroughly investigated and brought to the NRC's attention by PS at that time. PS has agreed to pay the penalty and has instituted several measures to reinforce to personnel that their concerns about safety and all issues relating to the operation of the nuclear facilities can be openly brought to management's attention. ACE has been advised by PS that PS has been notified of an NRC enforcement conference to be held on June 1, 1995 pertaining to valves that were incorrectly positioned after a plant modification was installed in May 1993 and several examples of inadequate root cause determination of events, which led to insufficient corrective actions at Salem. During this enforcement conference, PS will address the issues identified and ensure they are clearly understood, establish the safety significance of the issues and discuss the mitigating factors related to these issues. PS cannot predict what action, if any, the NRC may take as a result of this meeting. ACE has been advised by PS that in March 1995, the State of Delaware agreed to withdraw its hearing request related to Salem's NJPDES permit in return for PS funding a number of environmental projects in Delaware, similar to and including certain NJPDES permit conservation measures, which will not materially increase the cost of compliance with the permit. In May 1995, PS resolved all issues with the remaining intervenors, thus eliminating a hearing and any further challenge to the Salem permit. Hope Creek ACE, a 5% owner of the Hope Creek Nuclear Generating Station (Hope Creek) has been advised by PS, operator of Hope Creek, that on April 5, 1995 a small amount of low-level radioactive materials was released to the atmosphere at Hope Creek. The release did not exceed federal limits nor pose any danger to the public or plant employees; however, a trailer driven offsite had exceeded the limit for releasing materials. The trailer was later cleaned. PS and the NRC have investigated the event and met on this issue. An enforcement conference is currently scheduled for the end of June 1995. The equipment responsible for generating the release has been secured until the NRC has had the opportunity to review corrective actions. Additionally, similar equipment will be reviewed for deficiencies. PS will also be holding meetings with New Jersey and local government officials to address any concerns relating to the incident. PS cannot predict what actions, if any, the NRC will take as a result of this incident. Item 6. Exhibits and Reports on 8-K Exhibits: See Exhibit Index Attached Reports on Form 8-K: None. 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. Atlantic Energy, Inc. Atlantic City Electric Company (Registrant) Date: May 12, 1995 By: /s/ J. L. Jacobs J. L. Jacobs President and Chief Executive Officer of Atlantic Energy, Inc. Chairman and Chief Executive Officer of Atlantic City Electric Company Date: May 12, 1995 By: /s/ L. M. Walters L. M. Walters Treasurer of Atlantic Energy,Inc. and Vice President, Treasurer and Assistant Secretary of Atlantic City Electric Company EXHIBIT INDEX 27 Financial Data Schedules for Atlantic Energy, Inc. and Atlantic City Electric Company for periods ended March 31, 1995. EX-27 2
UT 0000008192 Atlantic City Electric Company 3-MOS DEC-31-1995 MAR-31-1995 PER-BOOK 1,781,314 56,189 281,323 371,558 0 2,490,384 54,963 491,858 241,301 788,122 149,250 40,000 751,071 110,150 0 0 12,247 12,250 39,228 0 588,066 2,490,384 218,666 6,197 184,904 191,101 27,565 2,637 30,202 14,800 15,779 3,787 11,992 20,458 0 (52,976) 0 0
EX-27 3
UT 0000806393 Atlantic Energy, Inc. 3-MOS DEC-31-1995 MAR-31-1995 PER-BOOK 1,781,314 181,512 275,617 373,075 0 2,611,518 575,108 0 240,192 815,300 149,250 40,000 766,071 110,150 0 0 28,147 12,250 39,240 0 651,110 2,611,518 218,626 6,197 184,845 191,042 27,584 2,095 29,679 14,800 11,469 3,787 11,469 20,391 0 (54,004) 0.21 0.21
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