0000893220-01-500782.txt : 20011026
0000893220-01-500782.hdr.sgml : 20011026
ACCESSION NUMBER: 0000893220-01-500782
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011018
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20011022
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: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-03559
FILM NUMBER: 1763545
BUSINESS ADDRESS:
STREET 1: 800 KING STREET
STREET 2: PO BOX 231
CITY: WILMINGTON
STATE: DE
ZIP: 19899
BUSINESS PHONE: 6096454100
MAIL ADDRESS:
STREET 1: 800 KING STREET
STREET 2: PO BOX 231
CITY: WILMINGTON
STATE: DE
ZIP: 19899
8-K
1
w54134be8-k.txt
FORM 8-K - ATLANTIC CITY ELECTRIC COMPANY
UNITED STATES
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):
October 18, 2001
Atlantic City Electric Company
Exact Name of Registrant as Specified in its Charter
New Jersey 1-3559 21-0398280
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
800 King Street, P.O. Box 231, Wilmington, Delaware 19899
(Address of Principal Executive Offices) (Zip Code)
(302) 429-3018
(Registrant's telephone number, including area code)
(Former Name or Former Address, if Changed Since Last Report)
Item 5. Other Information
As previously disclosed in Note 11 to the Consolidated Financial Statements
included in Item 8 of Part II of Atlantic City Electric Company's 2000 Annual
Report on Form 10-K, Atlantic City Electric Company, a wholly owned subsidiary
of Conectiv (ACE), previously entered into agreements to sell certain electric
generating plants.
Pursuant to agreements with PSEG Nuclear LLC (as assignee of PSEG Power LLC) and
Exelon Generation Company, LLC (as assignee of PECO Energy Company) for the sale
of ownership interests in nuclear electric generating plants, ACE sold its 7.51%
interest (representing 164 megawatts of capacity) in Peach Bottom, its 7.41%
interest (representing 167 megawatts of capacity) in Salem and its 5.00%
interest (representing 52 megawatts of capacity) in Hope Creek on October 18,
2001 for approximately $11.3 million. Also, ACE received proceeds for the net
book value of nuclear fuel on hand and used such proceeds to repay in part the
related lease obligation. In accordance with the agreements, ACE transferred its
decommissioning trust funds and related obligation for decommissioning the
nuclear plants to the purchasers.
As previously disclosed in Note 4 to the Consolidated Financial Statements
included in Item 1 of Part I of ACE's Quarterly Report on Form 10-Q for the
period ended June 30, 2001, the New Jersey Board of Public Utilities (NJBPU)
issued a Final Decision and Order to ACE, dated March 30, 2001, concerning
restructuring ACE's electricity supply business, including among other things,
stranded cost recovery and securitization. Following the issuance of the NJBPU
Final Decision and Order, ACE filed a petition with the NJBPU on June 25, 2001,
seeking the authority to issue up to $2 billion in transition bonds to fund the
securitization of stranded costs, including the restructuring of purchased power
contracts with non-utility generators.
As previously reported, NJBPU issued an Order, dated July 21, 2000, approving
the sale of ACE's ownership interests in the Peach Bottom, Salem and Hope Creek
nuclear electric generating plants. The NJBPU, in its July 21, 2000 Order,
stated that it would reserve its decision regarding the amount, if any, of ACE's
stranded costs eligible for securitization until after ACE's sale of its
baseload fossil fuel-fired assets had been evaluated and considered by the
NJBPU.
NJBPU issued a separate Decision and Order, dated September 17, 2001, addressing
the issue of eligible stranded costs associated with the nuclear assets. The
NJBPU determined the amount of such stranded costs eligible for recovery by ACE
to be approximately $297.9 million, after income taxes, as of December 31, 1999,
subject to further adjustments at the time of closing and subsequent
verification to reflect actual data at the time of closing. NJBPU also found
that ACE shall have the opportunity to recover the eligible stranded costs
through its market transition charge, in a time frame and manner to be
determined by NJBPU.
Conectiv issued a press release on October 18, 2001 relating to ACE's sale of
its ownership interests in the Peach Bottom, Salem and Hope Creek nuclear
electric generating plants, a copy of which is attached hereto as an exhibit and
incorporated by reference in its entirety herein.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(a) Not applicable.
(b) Not applicable.
(c) Exhibits
Exhibit 99-A Press Release dated October 18, 2001 in
connection with sales of nuclear interests by
Atlantic City Electric Company
SIGNATURE
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 CITY ELECTRIC COMPANY
By: /s/ Philip S. Reese
------------------------------
Philip S. Reese
Vice President and Treasurer
Date: October 18, 2001
Exhibit Index
Exhibit No.
99-A Press Release dated October 18, 2001 in connection with sales
of nuclear interests by Atlantic City Electric Company
EX-99.A
3
w54134bex99-a.txt
PRESS RELEASE
EXHIBIT 99A
FOR IMMEDIATE RELEASE
October 18, 2001
Media Contact:
Tim Brown (302) 283-5803
Investor Contact:
Bob Marshall (302) 429-3164
CONECTIV SUBSIDIARY COMPLETES SALE OF NUCLEAR INTERESTS
Wilmington, Delaware - Conectiv (NYSE:CIV, CIVA), a leading Mid Atlantic energy
provider, today announced that its wholly owned subsidiary, Atlantic City
Electric Company (Atlantic), had completed the sale of its ownership interests
in three nuclear plants to PSEG Nuclear LLC (PSEG Nuclear) and Exelon Generation
Company, LLC (Exelon). The ownership interests were sold for approximately $
11.3 million, excluding reimbursement of estimated fuel inventory, subject to
adjustment. As a result of the sale, the following interests in nuclear
generation assets, comprising all of Atlantic's nuclear interests, were
transferred:
- A 7.51-percent interest (164 megawatts) in the Peach Bottom Atomic Power
Station Units 2 and 3 (Peach Bottom) was sold in equal shares to co-owners
PSEG Nuclear and Exelon, each of which, prior to the sale, owned about 46
percent of Peach Bottom. Exelon is the operator of that facility.
- A 7.41-percent interest (167 megawatts) in the Salem Nuclear Generation
Station Units 1 and 2 (Salem) was sold to PSEG Nuclear, an indirect
subsidiary of Public Service Enterprise Group Incorporated. PSEG Nuclear is
the operator of Salem and, prior to the sale, owned about 50percent of that
facility.
- A 5.00-percent interest (52 megawatts) in the Hope Creek Nuclear Generation
Station Units 1 and 2 (Hope Creek) was sold to PSEG Nuclear. PSEG Nuclear
is the operator of Hope Creek and, prior to the sale, owned 95percent of
that facility.
PSEG Nuclear and PECO have also assumed full responsibility for the ultimate
decommissioning of Atlantic's interests in Peach Bottom, Salem and Hope Creek.
Conectiv President and Chief Operating Officer Thomas Shaw said the sale is
consistent with the company's strategy of focusing on its two core energy
businesses: Conectiv Energy, the company's integrated generation and asset
optimization group, and Conectiv Power Delivery, the company's regulated
delivery business.
Shaw said, "The sale represents another milestone in the execution of our
focused business strategy. We have sold baseload nuclear and fossil fired power
plants that do not fit our strategy and have made progress developing and
building new, fast-response, 'mid-merit' generation units that can meet the
region's need for power. This
focus on a segment of the generation market where we have a competitive
advantage -- combined with our stable energy delivery business -- should allow
us to continue to drive growth and value for our shareholders."
Mid merit units are distinguished by their ability to start and stop quickly in
response to changes in the demand for power. Shaw pointed to the company's
success in bringing on line 350 MWs of additional mid-merit capacity this past
summer at the company's Hay Road power plant in Wilmington, DE, as a sign of
Conectiv's progress in strengthening its already strong competitive position
within PJM's mid-merit market.
---#####---
Conectiv, a Fortune 500 company headquartered in Wilmington, DE, is focused on
two core energy businesses. Conectiv Power Delivery provides safe, reliable, and
affordable energy service to more than one million customers in New Jersey,
Delaware, Maryland, and Virginia. Conectiv Energy uses a sophisticated
power-trading unit to optimize the value of a growing portfolio of "mid-merit"
power plants that can start and stop quickly in response to changes in the
demand for power within the PJM [Pennsylvania-New Jersey-Maryland] power pool.
FORWARD-LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 (the "Litigation Reform
Act") provides a "safe harbor" for forward-looking statements to encourage such
disclosures without the threat of litigation, provide those statements are
identified as forward-looking and are accompanied by meaningful, cautionary
statements identifying important factors that could cause the actual results to
differ materially from those projected in the statements. Forward-looking
statements have been made in this Press Release. Such statements are based on
beliefs of Conectiv's (the "Company's") management ("Management") as well as
assumptions made by and information currently available to Management. When used
herein, the words "will," "anticipate," "estimate," "expect," "objective," and
similar expressions are intended to identify forward-looking statements. In
addition to any assumptions and other factors referred to specifically in
connection with such forward-looking statements, factors that could cause actual
results to differ materially from those contemplated in any forward-looking
statements include, among others, the following: deregulation of energy supply
and telecommunications; the unbundling of delivery services; and increasingly
competitive energy and telecommunications marketplace; results of any asset
dispositions; sales retention and growth; the effects of weather; federal and
state regulatory actions; future litigation results; cost of construction;
operating restrictions; increased costs and construction delays attributable to
environmental regulations; nuclear decommissioning and the availability of
reprocessing and storage facilities for spent nuclear fuel; and credit market
concerns. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. The foregoing list of factors pursuant to the Litigation
Reform Act should not be construed as exhaustive or as admission regarding the
adequacy of disclosures made prior to the effective date of the Litigation
Reform Act.