Exhibit FS-8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
I. Actual Consolidated Statements of Income for Conectiv, Inc. (Exhibit FS-5
CON), Delmarva Power & Light Company (Exhibit FS-1 DPL), and Atlantic City
Electric Company (Exhibit FS-3 ACE) for the twelve month period ended September
30, 2000 are presented.
The actual results of operations for the twelve months ended September
30, 2000 exclude the write down of Peach Bottom in the third quarter
of 1999 that resulted from discontinuing the application of Statement
of Financial Accounting Standards (SFAS) No. 71, "Accounting for the
Effects of Certain Types of Regulation," to Delmarva Power and Light
Company's (DPL) and Atlantic City Electric Company's (ACE) electricity
supply businesses because of deregulation. The charge for the
write-down occurred prior to the twelve-month period ended September
30, 2000; thus, no adjustment to actual results is presented for this
item. The effect of deferred investment tax credits which reverse upon
completion of the sale and adjustments to the estimated write-down
recorded in connection with deregulation were credited to retained
earnings for DPL and were credited to regulatory liabilities and
charged to regulatory assets for ACE.
II. Pro Forma Consolidated Balance Sheets for Conectiv, Inc. (Exhibit FS-6 CON),
Delmarva Power & Light Company (Exhibit FS-2 DPL), and Atlantic City Electric
Company (Exhibit FS-4 ACE). The columns on each proforma balance sheet represent
the following:
Column 1: The consolidated balances as of September 30, 2000---which
reflect the effects of the write-down of Peach Bottom in the third
quarter of 1999 that resulted from discontinuing the application of
SFAS No. 71 to DPL's and ACE's electricity supply businesses because
of deregulation.
Column 2: The pro forma effects of the sale of Peach Bottom.
Column 3: The Consolidated Balance Sheet as of September 30, 2000 on a
pro forma basis to include the expected effects of the sale of Peach
Bottom.
