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): December 30, 1996
BALTIMORE GAS AND ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Maryland 1-1910 52-0280210
(State of incorporation) (Commission (IRS Employer
File Number) Identification No.)
39 W. Lexington Street Baltimore, Maryland 21201
(Address of principal executive offices) (Zip Code)
410-783-5920
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed
since last report)
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ITEM 5. Other Events
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Charge to Earnings for Settlement of Fuel Rate Proceedings about Calvert Cliffs
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Nuclear Power Plant Extended Outage
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As reported in our 1995 Annual Report on Form 10-K, during 1989 through 1991 we
experienced extended outages at our Calvert Cliffs Nuclear Power Plant. The
replacement energy costs associated with these extended outages are estimated to
be $458 million. The extended outages have been the subject of ongoing fuel rate
proceedings before the Maryland Public Service Commission (PSC) for several
years.
On December 30, 1996, we entered into a settlement agreement with People's
Counsel (the advocates for residential ratepayers) and the PSC Staff proposing a
resolution to these fuel rate proceedings. We agreed that ratepayers will not
fund a total of $118 million of deferred electric fuel costs associated with the
extended outages. This represents $83 million in addition to the $35 million
reserve for possible disallowance of replacement energy costs we recorded in
1990. Under the accounting rules, the agreement results in a charge to earnings
in the fourth quarter of 1996 totaling $58 million after tax, or 39 cents per
share. Technically, the accounting entries are as follows: we will record a
reserve to write off $83 million of deferred electric fuel costs (in addition to
the previous $35 million reserve). Additionally, we will record a reserve to
write off $5.5 million of accrued carrying charges related to the deferred fuel
balances.
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 thereunto duly authorized.
BALTIMORE GAS AND ELECTRIC COMPANY
(Registrant)
Date December 30, 1996 /s/ C.W. Shivery
C. W. Shivery, Vice President
on behalf of the Registrant and
as Principal Financial Officer
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