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File Number 70-9307
As filed with the Securities and
Exchange Commission on July 8, 1998
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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AMENDMENT NO. 1 TO
FORM U-1
APPLICATION
UNDER THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
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Atlantic City Electric Company
6801 Black Horse Pike
Egg Harbor Township, NJ 08234
(Name of company filing this statement
and address of principal executive office)
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Conectiv
(Name of top registered holding company parent)
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Louis M. Walters
Treasurer
Atlantic City Electric Company
800 King Street
Wilmington, DE 19899
(Name and address of agents for service)
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The Commission is requested to send copies of all notices, orders and
communications in connection with this Application/Declaration to:
Peter F. Clark, Esq.
Conectiv Joyce Koria Hayes, Esq.
800 King Street 7 Graham Court
Wilmington, DE 19899 Newark, DE 19711
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The Application as previously filed is hereby amended as follows:
Insert the following at the end of Item 1:
Statement Pursuant to Rule 54
Rule 54 promulgated under the Act states that in determining whether to
approve the issue or sale of a security by a registered holding company for
purposes other than the acquisition of an Exempt Wholesale Generator ("EWG") or
a Foreign Utility Company ("FUCO"), or other transactions by such registered
holding company or its subsidiaries other than with respect to EWGs or FUCOs,
the Commission shall not consider the effect of the capitalization or earnings
of any subsidiary which is an EWG or a FUCO upon the registered holding company
system if Rules 53(a), (b) or (c) are satisfied. As demonstrated below, such
rules are satisfied.
Rule 53 requires that the aggregate investment in EWGs and FUCOs not
exceed 50% of a system's consolidated retained earnings. Conectiv and its
subsidiaries will not make any investments in EWGs and FUCOs that cause it to
exceed that limitation, unless the Commission otherwise authorizes. Currently,
Conectiv has one insignificant indirect interest in an EWG. DCTC-Burney, Inc.,
an indirect subsidiary of Conectiv, holds a 45% direct and indirect interest in
Burney Forest Products, A Joint Venture, which is an EWG. As of March 31, 1998,
the book value of the investment was $0.
Conectiv and its subsidiaries will maintain books and records to identify
the investments in and earnings from EWGs and FUCOs in which they directly or
indirectly hold an interest, thereby satisfying Rule 53(a)(2). In addition, the
books and records of each such entity will be kept in conformity with United
States generally accepted accounting principles ("GAAP"), the financial
statements will be prepared according to GAAP, and Conectiv undertakes to
provide the Commission access to such books and records and financial statements
as it may request.
Employees of Conectiv's domestic public-utility companies will not render
services, directly or indirectly, to any EWGs or FUCOs in the Conectiv System,
thereby satisfying Rule 53(a)(3).
Conectiv, in connection with any Form U-1 seeking approval of EWG or FUCO
financing, will submit copies of such Form U-1 and every certificate filed
pursuant to Rule 24 with every federal, state or local regulator having
jurisdiction over the retail rates of the public utility companies in the
Conectiv System. Rule 53(a)(4) will be correspondingly satisfied.
None of the conditions described in Rule 53(b) exists with respect to
Conectiv, thereby satisfying Rule 53(b) and making Rule 53(c) inapplicable.
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SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, the undersigned company has duly caused this statement to be signed on its
behalf by the undersigned thereunto duly authorized.
Atlantic City Electric Company
By /s/ Louis M. Walters
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Louis M. Walters
Treasurer
Dated: July 8, 1998
