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): May 30, 1997
Commission Registrant; State of Incorporation; IRS Employer
File Number Address; and Telephone Number Identification No.
1-11375 UNICOM CORPORATION 36-3961038
(an Illinois corporation)
37th Floor, 10 South Dearborn Street
Post Office Box A-3005
Chicago, Illinois 60690-3005
312/394-7399
1-1839 COMMONWEALTH EDISON COMPANY 36-0938600
(an Illinois corporation)
37th Floor, 10 South Dearborn Street
Post Office Box 767
Chicago, Illinois 60690-0767
312/394-4321
Item 5. Other Events.
Rate Order Appeal Decision
On May 30, 1997, the Illinois Appellate Court issued an opinion
in the pending appeal of the rate order ("Rate Order") issued by the
Illinois Commerce Commission ("ICC") in January 1995 in connection
with Commonwealth Edison Company's ("ComEd") most recent rate case.
The Appellate Court affirmed the Rate Order in all respects with the
exception of two issues which it remanded to the ICC for the purpose
of providing further analysis. Those issues relate to: (i) the
manner in which certain costs are recovered and which customers
should pay these costs, and (ii) the proper rate of return on common
equity for ComEd. ComEd believes that the ICC can satisfy the
Appellate Court's remand directions on the basis of the existing
record from the ICC proceedings which led to the Rate Order.
With respect to the rate of return issue, the ICC had determined
in the Rate Order that ComEd's cost of common equity was 12.28%.
Intervenors had submitted testimony recommending a lower number of
11.50%, and ComEd had submitted testimony recommending a higher
number. The ICC ultimately adopted a recommendation made by an ICC
Staff witness. The Appellate Court decision requires the ICC to
clarify the basis for certain of its findings relating to its
rejection of the intervenors' recommendation and to analyze further
how the Staff witness arrived at his conclusions. The Appellate
Court stated that "After reanalyzing these bases, the Commission can
determine whether or not [the Staff witness'] cost of equity
presentation should still be followed." Each tenth of one percent
change in the common equity rate of return has an approximately $8.3
million effect on the level of rates.
The Appellate Court decision does not have any immediate effect
on ComEd's rates or require any refunds. In connection with the
initiation of the appeal, ComEd committed that "in the event that a
final, non-appealable order is entered reversing the ICC's rate order
in this case, that Commonwealth Edison will refund to its customers any amounts
collected pursuant to the Rate Order that are subsequently determined
by the Commission on remand, and affirmed by all reviewing courts in the
event of an appeal, to have been in excess of the 'just and
reasonable' rates that would have been in effect under a proper rate
order as determined by the Commission, plus interest at the legal rate." As
of March 31, 1997, electric operating revenues of approximately $754
million (excluding revenue taxes) were subject to refund. As noted,
the Appellate Court's decision did not reverse the Rate Order.
Therefore, no refunds are required by the Appellate Court's decision.
It is expected that the Appellate Court's decision will be appealed
by the intervenors to the Illinois Supreme Court.
Pending Deregulation Legislation
As discussed under "Changes in the Electric Utility Industry" in
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the Quarterly Report on Form 10-Q for the
quarterly period ended March 31, 1997, various legislative proposals
have been pending in the Illinois legislature for the purpose of,
among other things, introducing price-based competition into the
supply of electric energy in Illinois under a less regulated
structure. That process will continue into the Fall of 1997. On May
30, 1997, the Illinois House of Representatives approved, on a vote
of 85 to 12, a bill that would have provided for a 10% residential
rate reduction commencing in 1998, customer access to other electric
suppliers in a phased-process over several years, the recovery by
utilities of a portion of their invested costs that might not
otherwise be recoverable in charges in a less regulated market, and
a leveling of certain regulatory and tax provisions as applied to
various electric service providers. The Illinois Senate, however,
deferred final consideration of the bill until the Fall veto session
scheduled for October 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrants have duly caused this report to be
signed on their behalf by the undersigned thereunto duly authorized.
UNICOM CORPORATION
(Registrant)
Date: May 30, 1997 By: John C. Bukovski
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John C. Bukovski
Vice President
COMMONWEALTH EDISON COMPANY
(Registrant)
Date: May 30, 1997 By: John C. Bukovski
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John C. Bukovski
Vice President