SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTIONS 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 7, 1998
__________________CONECTIV _________________
(Exact Name of Registrant as Specified in Charter)
_____Delaware_____ 1-13895 51-0377417
(State or Other Jurisdiction <Commission (IRS Employer
of Incorporation) File Number) Identification No.)
800 King Street, P.O. Box 231, Wilmington, Delaware 19899
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code 302-429-3114
None
(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events
On November 16, 1998, the New Jersey Democratic Assembly
Energy Deregulation Task Force introduced legislation to
restructure the electric industry. Such Democratic legislation
is an alternative to the bill introduced by the Republican
majority on September 14, 1998, which had been developed in
conjunction with the Board of Public Utilities of the State of
New Jersey (BPU). The Democratic legislation would require,
among other things: an average 15% rate reduction sustained over
a period of 8 years, absent special circumstances; a prohibition
on the recovery of any stranded costs that are incurred
subsequent to the conclusion of a utility's most recent base rate
case prior to April 30, 1997; and a limitation imposed on the
recovery of stranded costs to only 65% of costs determined by the
BPU to be eligible for recovery. The Democratic legislation also
provides for the assessment of pollution impacts of electricity
generated within and outside the State of New Jersey, and an
imposition of additional sales tax on electricity produced by a
facility that violates the maximum air pollution levels pursuant
to the restructuring legislation. Additional provisions of the
Democratic legislation would require BPU approval for unregulated
subsidiaries or affiliates of regulated utilities to engage in
competitive activities and establishment of portfolios of
renewable energy resources. Such legislation would also impose
additional restrictions with respect to the disposition of
utility assets and create a fund to pay benefits for displaced
utility workers.
Conectiv cannot predict the form in which industry
restructuring may be finally enacted, or the extent to which any
portions of the Democratic legislation may be incorporated into
any final restructuring legislation in New Jersey. If enacted in
its present form, the Democratic legislation could have a
material effect upon the results of operations of Conectiv and
Atlantic City Electric Company.
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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
(Registrant)
Date: December 7, 1998 /s/ L.M. Walters
Treasurer
