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
Conectiv
Exact Name of Registrant as Specified in its Charter
Delaware 1-13895 51-0377417
(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 14 to the Consolidated Financial Statements
included in Item 8 of Part II of Conectiv's 2000 Annual Report on Form 10-K and
in Note 11 to the Consolidated Financial Statements included in Item 1 of Part I
of Conectiv's Quarterly Report on Form 10-Q for the period ended June 30,
2001, 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 8 to the Consolidated Financial Statements
included in Item 1 of Part I of Conectiv'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.
CONECTIV
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