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Previous: AMERICAN FIDELITY SEPARATE ACCOUNT B, 485BPOS, 2000-04-28 |
Next: PAPP AMERICA PACIFIC RIM FUND INC, 485BPOS, 2000-04-28 |
<PAGE>
Form U-13-60
Mutual and Subsidiary Service Companies
ANNUAL REPORT
For the Period
Beginning January 1, 1999 and Ending December 31, 1999
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
CONECTIV RESOURCE PARTNERS, INC.
A Subsidiary Service Company
Date of Incorporation: January 16, 1998
State or Sovereign Power under which Incorporated or Organized: Delaware
Location of Principal Executive Offices of Reporting Company:
800 King Street
Wilmington, DE 19899
Name, title, and address of officer to whom correspondence
concerning this report should be addressed:
James P. Lavin, Controller
Accounting and Finance
800 King Street
Wilmington, DE 19899
Name of Principal Holding Company Whose Subsidiaries are served
by Reporting Company:
Conectiv
<PAGE>
INSTRUCTIONS FOR USE OF FORM U-13-60
1. TIME OF FILING. Rule 94 provides that on or before the first day of May in
each calendar year, each mutual service company and each subsidiary service
company as to which the Commission shall have made a favorable finding
pursuant to Rule 88, and every service company whose application for
approval or declaration pursuant to Rule 88 is pending shall file with the
Commission an annual report on Form U-13-60 and in accordance with the
Instructions for that form.
2. NUMBER OF COPIES. Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra coupe for itself in
case correspondence with reference to the report become necessary.
3. PERIOD COVERED BY REPORT. The first report filed by any company shall cover
the period from the date the Uniform System of Accounts was required to be
made effective as to that company under Rules 82 and 93 to the end of that
calendar year. Subsequent reports should cover a calendar year.
4. REPORT FORMAT. Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted of the same size as a sheet of the form
or folded to such size.
5. MONEY AMOUNTS DISPLAYED. All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (Section 210.3-01(c)).
6. DEFICITS DISPLAYED. Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference in
footnotes. (Regulation S-X, Section 210.3-01 (c) ).
7. MAJOR AMENDMENTS OR CORRECTIONS. Any company desiring to amend or correct a
major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages,
schedules, and entries that are to be amended or corrected. A cover letter
shall be submitted requesting the Commission to incorporate the amended
report changes and shall be signed by a duly authorized officer of the
company.
8. DEFINITIONS. Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February
2, 1979 shall be applicable to words or terms used specifically within this
Form U-13-60.
9. ORGANIZATION CHART. The service company shall submit with each annual
report a copy of its current organization chart.
-1-
<PAGE>
10. METHODS OF ALLOCATION. The service company shall submit with each annual
report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED. The service
company shall submit with each annual report a copy of the annual statement
supplied to each associate company in support of the amount of compensation
for use of capital billed during the calendar year.
12. ELECTRONIC FILERS. Electronic filers are subject to Regulation S-T and the
EDGAR Filer Manual. Any rule or instruction therein shall be controlling
unless otherwise specifically provided in rules or instructions pertaining
to the submission format documents.
Data that appears in tabular or columnar format shall be marked as
prescribed in the EDGAR Filer Manual.
Signatures shall be in typed form rather than manual format. See rule 13 of
Regulation S-T.
-2-
<PAGE>
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNT
Schedule or Page
Description of Schedules and Accounts Account Number Number
COMPARATIVE BALANCE SHEET Schedule I 4-5
Service Company Property Schedule II 6-7
Accumulated Provision for Depreciation and
Amortization of Service Company Property Schedule III 8
Investments Schedule IV 9
Accounts Receivable from Associate Companies Schedule V 10
Fuel Stock Expenses Undistributed Schedule VI 11
Stores Expense Undistributed Schedule VII 12
Miscellaneous Current and Accrued Assets Schedule VIII 13
Miscellaneous Deferred Debits Schedule IX 14
Research, Development, or Demonstration
Expenditures Schedule X 15
Proprietary Capital Schedule XI 16
Long-Term Debt Schedule XII 17
Current and Accrued Liabilities Schedule XIII 18
Notes to Financial Statements Schedule XIV 19-20
COMPARATIVE STATEMENT OF INCOME Schedule XV 21
Analysis of Billing - Associate Companies Account 457 22
Analysis of Billing - Non associate Companies Account 458 23
Analysis of Charges for Service - Associate
and Non associate Companies Schedule XVI 24
Schedule of Expense by Department or
Service Function Schedule XVII 25-27
Departmental Analysis of Salaries Account 920 28-29
Outside Services Employed Account 923 30-33
Employee Pensions and Benefits Account 926 34
General Advertising Expenses Account 930.1 35
Miscellaneous General Expenses Account 930.2 36
Rents Account 931 37
Taxes Other Than Income Taxes Account 408 38
Donations Account 426.1 39-40
Other Deductions Account 426.5 41
Notes to Statement of Income Schedule XVIII 42
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Description of Reports or Statements
ORGANIZATION CHART 43
METHODS OF ALLOCATION 44-50
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED 51
SIGNATURE 52
-3-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31
of the current and prior year
<TABLE>
<CAPTION>
As of
Account Assets and Other Debits December 31
Current Prior
1999 1998
(In Thousands)
<S> <C> <C>
SERVICE COMPANY PROPERTY
101 Service Company Property (Schedule II) $ 84,119 $ 11,774
107 Construction work in progress (Schedule II) - 379
-------------------
Total Property $ 84,119 $ 12,153
--------------------
108 Less accumulated provision for depreciation
and amortization of service company property
(Schedule III) $ 6,537 $ 611
--------------------
Net Service Company Property $ 77,582 $ 11,542
--------------------
INVESTMENTS
121 Nonutility Property $ 8,286 $ 5,796
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
--------------------
Total Investments $ 8,286 $ 5,796
--------------------
CURRENT AND ACCRUED ASSETS
131 Cash 2 1
134 Special deposits - -
135 Working funds 46 87
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 26 -
144 Accumulated provision for uncollectible accounts - -
146 Accounts receivable from associate companies
(Schedule V and XIV) 38,851 34,486
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 1,193 930
174 Miscellaneous current and accrued assets - -
--------------------
Total Current and Accrued Assets $ 40,118 $ 35,504
--------------------
DEFERRED DEBITS
181 Unamortized debt expense - -
183 Preliminary Survey and Investigation - 22
184 Clearing accounts 50 127
186 Miscellaneous deferred debits (Schedule IX) (111) 7
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes - -
--------------------
Total Deferred Debits $ (61) $ 156
--------------------
TOTAL ASSETS AND OTHER DEBITS $125,925 $ 52,998
-------------------
</TABLE>
-4-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
SCHEDULE I - COMPARATIVE BALANCE SHEET
<TABLE>
<CAPTION>
As of
Account Assets and Other Debits December 31
Current Prior
1999 1998
(In Thousands)
<S> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $ 1 $ 1
211 Miscellaneous paid-in-capital (Schedule XI)
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) (131) (26)
------------------------
Total Proprietary Capital $ (130) $ (25)
------------------------
LONG - TERM DEBT
223 Advances from associate companies $ - $ -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt - -
------------------------
Total Long - Term Debt $ - $ -
------------------------
CURRENT AND ACCRUED LIABILITIES
184 Clearing accounts $ 10 $ (7)
231 Notes payable - -
232 Accounts payable 15,355 7,501
233 Notes payable to associate companies
(Schedule XIII and XIV) 84,654 37,327
234 Accounts payable to associate companies
(Schedule XIII and XIV) - -
236 Taxes accrued (4,667) (1,123)
237 Interest accrued 267 94
238 Dividends declared - -
241 Tax collections payable (102) 1,323
242 Miscellaneous current and accrued liabilities
(Schedule XIII) 20,311 6,560
------------------------
Total Current and Accrued Liabilities $115,828 $51,675
------------------------
DEFERRED CREDITS
253 Other deferred credits $ 37 $ 3
254 Other regulatory liabilities 2,496 -
255 Accumulated deferred investment tax credits - -
------------------------
Total Deferred Credits $ 2,533 $ 3
------------------------
ACCUMULATED DEFERRED INCOME TAXES
282 Accumulated deferred income taxes-Other Property $ 6,137 $ -
283 Accumulated deferred income taxes-Other 1,557 1,345
------------------------
Total Accumulated Deferred Income Taxes $ 7,694 $ 1,345
------------------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $125,925 $52,998
========================
</TABLE>
-5-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE II - SERVICE COMPANY PROPERTY
<TABLE>
<CAPTION>
Balance At Retirements Balance At
Beginning or Other Close
Description of Year Additions Sales Changes (1) of Year
<S> <C> <C> <C> <C> <C>
SERVICE COMPANY
PROPERTY
Account
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous
Intangible Plant 8,250 16,317 (9,909) - 14,658
304 Land and Land
Rights - - - - -
305 Structures and
Improvements - 14,262 - - 14,262
306 Leasehold
Improvements - - - -
307 Equipment(2) 3,524 45,837 - - 49,361
308 Office Furniture
and Equipment - 5,838 - - 5,838
309 Automobiles,
Other Vehicles
and Related Garage
Equipment - - - - -
310 Aircraft and Airport
Equipment - - - - -
311 Other Service
Company Property(3) - - - - -
--------------------------------------------------------------------------------
SUBTOTAL $ 11,774 $ 82,254 $ (9,909) $ - $ 84,119
107 Construction Work in
progress (4) 379 (379) - - -
---------------------------------------------------------------------------------
TOTAL $ 12,153 $ 81,875 $ (9,909) $ - $ 84,119
=================================================================================
</TABLE>
(1) Provide an explanation of those changes considered material:
-6-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE II - CONTINUED
(2) Sub accounts are required for each class of equipment owned. The service
company shall provide a listing by sub account of equipment additions
during the year and the balance at the close of the year:
<TABLE>
<CAPTION>
Balance At
Close of
Subaccount Description Additions Year
<S> <C> <C>
Computer Hardware $ 37,285 $ 40,809
Computer Software 8,132 8,132
Typewriters, Calculators, Copiers, & Duplicating - -
Office Services Printing and Stationary Equipment - -
Cafeteria & Kitchen Equipment 420 420
----------------------------
TOTAL $ 45,837 $ 49,361
============================
</TABLE>
(3) Describe Other Service Company Property:
Not Applicable
(4) Describe Construction Work in Progress:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Asset Under Construction Capitalized Date Value Description
------------------------ ---------------- ----- -----------
Not Applicable
</TABLE>
-7-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
<TABLE>
<CAPTION>
Balance At Additions Other Balance At
Beginning Charged to Changes Add Close
Description of Year Account 403 Retirements (Deduct) (1) of Year
<S> <C> <C> <C> <C> <C> <C>
Account
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous
Intangible Plant 441 2,929 (1,268) - 2,102
304 Land and Land
Rights - - - - -
305 Structures and
Improvements - 156 - - 156
306 Leasehold
Improvements - - - - -
307 Equipment(2) 170 4,028 - - 4,198
308 Office Furniture
and Equipment - 81 - - 81
309 Automobiles,
Other Vehicles
and Related Garage
Equipment - - - - -
310 Aircraft and Airport
Equipment - - - - -
311 Other Service
Company Property - - - - -
--------------------------------------------------------------------------------
TOTAL $ 611 $ 7,194 $ (1,268) $ - $ 6,537
================================================================================
</TABLE>
(1) Provide an explanation of those changes considered material:
NOT APPLICABLE
-8-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each investment separately,
with description, including the name of the issuing company, number of
shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each investment
separately.
<TABLE>
<CAPTION>
Balance At Balance At
Beginning Close
Description of Year of Year
<S> <C> <C>
Account 123 - Investment in Associate Companies $ - $ -
Account 124 - Other Investments - -
Account 136 - Temporary Cash Investments - -
--------------------------------------
TOTAL $ - $ -
======================================
</TABLE>
-9-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided
accomodation or convenience payments for associate companies, a
separate listing of total payments for each associate company by
subaccount should be provided.
<TABLE>
<CAPTION>
Balance At Balance At
Beginning Close
Description of Year of Year
<S> <C> <C>
Account 146 - Accounts Receivable from Associate
Companies
Christiana Capital Management $ 122 $ -
DCI I, Inc. 34 -
DCI II, Inc. - 28
Conectiv Operating Services Company 29 2,427
DCTC-Burney, Inc. - 12
Delmarva Power & Light 12,001 18,040
Atlantic City Electric 8,771 11,902
Delmarva Capital Investments 40 378
Conectiv Energy Supply, Inc. 198 1,663
Atlantic Energy Enterprises, Inc. 451 -
Enertech Capital Partners, LP 18 -
Delmarva Services Company 8 4
Power Consulting Group, Inc. 182 -
Conectiv Solutions LLC 7,200 887
Conectiv Communications, Inc. 3,835 2,424
Conectiv Services, Inc. 1,643 1,004
Petron Oil Corporation 26 -
Conectiv Plumbing, LLC 48 -
Conectiv Holding Company (120) 45
ATE Investments, Inc. - 322
Atlantic Southern Properties - 54
Atlantic Generation, Inc. - 89
Conectiv Energy, Inc. - (3,754)
Conectiv Thermal Systems - 125
Enerval, LLC - 2,576
Atlantic Jersey Thermal Systems Inc. - 1
Thermal Energy Limited Partnership - 617
King Street Assurance Ltd. - 7
------------ ------------
TOTAL RECEIVABLES $ 34,486 $ 38,851
============ ============
Total
Payments
Analysis of Convenience or Accomodation Payments:
$ -
------------
TOTAL PAYMENTS $ -
============
</TABLE>
-10-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE VI - FUEL STOCK EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount
attributable to each associate company. Under the section headed
"summary" listed below give an overall report of the fuel
functions performed by the service company.
<TABLE>
<CAPTION>
Description Labor Expenses Total
----------- ----- -------- -----
<S> <C> <C> <C>
Account 152 - Fuel Stock Expenses Undistributed $ - $ - $ -
--------------------------------------------------------------------------
TOTAL $ - $ - $ -
==========================================================================
</TABLE>
Summary:
Not Applicable
-11-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
stores expense during the year and indicate amount attributable to
each associate company.
<TABLE>
<CAPTION>
Description Labor Expenses Total
----------- ----- -------- -----
<S> <C> <C> <C>
Account 163 - Stores Expense Undistributed $ - $ - $ -
-------------------------------------------------------------
TOTAL $ - $ - $ -
=============================================================
</TABLE>
-12-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE VIII - MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
<TABLE>
<CAPTION>
Balance At Balance At
Beginning Close
Description of Year of Year
-----------
<S> <C> <C>
Account 174 - Miscellaneous Current and $ - $ -
-------------------------------------------
Accrued Assets
TOTAL $ - $ -
===========================================
</TABLE>
-13-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class, showing the number of items in each
class.
<TABLE>
<CAPTION>
Balance At Balance At
Beginning Close
Description of Year of Year
-----------
<S> <C> <C>
Account 186 - Miscellaneous Deferred Debits
Suspense-Procurement $ 9 $ (135)
Exp in connection with Mgmt Life Insurance Program (2) (2)
Other - 26
-------------------------------------------
TOTAL $ 7 $ (111)
===========================================
</TABLE>
-14-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service
corporation during the year.
Description Amount
----------- ------
Account 188 - RESEARCH, DEVELOPMENT,
OR DEMONSTRATION EXPENDITURES $ -
TOTAL $ -
==============
-15-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
SCHEDULE XI - PROPRIETARY CAPITAL
<TABLE>
<CAPTION>
Outstanding
Number of Par or Stated Close of Period
Account Shares Value No. of Total
Number Class of Stock Authorized Per Share Shares Amount
<S> <C> <C> <C> <C> <C>
201 Common Stock Issued 1,000 $ 1.00 1,000 $ 1,000
</TABLE>
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which gave rise to
the reported amounts.
<TABLE>
<CAPTION>
Description Amount
<S> <C>
Account 211 - Miscellaneous Paid-In Capital $ -
Account 215 - Appropriated Retained Earnings
---------------
TOTAL $ -
</TABLE>
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed or
net loss remaining from servicing nonassociates per the General
Instructions of the Uniform System of Accounts. For dividends paid
during the year in cash or otherwise, provide rate percentage,
amount of dividend, date declared and date paid.
<TABLE>
<CAPTION>
Balance At Net Income Balance At
Beginning or Dividends Close
Description of Year (Loss) Paid of Year
<S> <C> <C> <C> <C>
Account 216 - Unappropriated
Retained Earnings $ (26) $ (105) $ - $ (131)
-------------------------------------------------------------------------
TOTAL $ (26) $ (105) $ - $ (131)
=========================================================================
</TABLE>
-16-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes, and advances on open account. Names of
associate companies from which advances were received shall be
shown under the class and series of obligation column. For Account
224 - Other Long-Term Debt provide the name of the creditor
company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and
outstanding.
<TABLE>
<CAPTION>
Terms of Oblig Date Balance At Balance At
Class & Series of Interest Amount Beginning Deductions Close
of Obligation Maturity Rate Amortized of Year Additions (1) of Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Account 223 - Advances from
Associate Companies: $ - $ -
Account 224 - Other Long-Term Debt - -
TOTAL $ - $ -
</TABLE>
(1) Give an explanation of deductions:
Not Applicable
-17-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and
accrued liabilities. Items less than $10,000 may be grouped,
showing the number of items in each group.
<TABLE>
<CAPTION>
Description Beginning Close
----------- of Year of Year
<S> <C> <C>
Account 233 - Notes Payable to Associate Companies
Conectiv Money Pool $ 12,327 $ 84,654
Conectiv Holding Company $ 25,000 $ -
------------------------------------------
TOTAL $ 37,327 $ 84,654
==========================================
Account 234 - Accounts Payable to Associate Companies $ - $ -
- -
------------------------------------------
TOTAL $ - $ -
==========================================
Account 242 - Miscellaneous Current and Accrued Liabilities
General Liability Insurance $ 314 $ 55
Life Insurance 120 -
Health Claims Reserve - 1,355
Severance - 5,129
Pension - 4,295
Deferred Compensation 5,834 8,479
Deferred Savings and Thrift 292 968
Other - 30
------------------------------------------
TOTAL $ 6,560 $ 20,311
==========================================
</TABLE>
-18-
<PAGE>
ANNUAL REPORT OF: CONECTIV RESOURCE PARTNERS, INC.
For the Year Ended December 31, 1999
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars
as to any significant contingent assets of liabilities existing
at the end of the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
1. Service Company Property and Non-Utility Property
Service Company property and non-utility property are stated at
original cost, including property additions. Capitalized interest is
included in the original cost and represents the cost of borrowed and
equity funds used to finance construction of new facilities. The annual
provision for depreciation on service company and non-utility property
is computed on the straight-line basis using composite rates by classes
of depreciable property. Accumulated depreciation is charged with the
cost of depreciable property retired, including removal costs less
salvage and other recoveries.
2. Income Taxes
CRP, as a subsidiary of Conectiv, is included in the consolidated
federal income tax return of Conectiv. Income taxes are allocated to
CRP based upon its taxable income or loss, determined on a separate
return basis. The financial statements include two categories of income
taxes-current and deferred. Current income taxes represent CRP's share
of amounts of tax expected to be reported on Conectiv's federal and
state income tax returns. Deferred income tax assets and liabilities
represent the tax effects of temporary differences between the
financial statements and tax bases of existing assets and liabilities
and are measured using presently enacted tax rates. Deferred income tax
expense represents the net change during the reporting period in the
net deferred tax liability.
3. Pension and Other Postretirement Benefits
CRP employees are covered by the Conectiv pension plan which as
of December 31, 1999 had a projected benefit obligation of $673.1
million and trust fund assets with a fair value of $1,017.8 million,
resulting in an over-funded status of $344.7 million of which $35.0
million was reflected on Conectiv's Consolidated December 31, 1999
Balance Sheet. During 1999, CRP was billed by associated Conectiv
subsidiaries for $4.3 million for pension service and interest costs,
net of expected return on assets.
CRP employees are covered by Conectiv's other postretirement
benefit plans which as of December 31, 1999 had a projected benefit
obligation of $194.0 million and trust fund assets with a fair value of
$120.1 million, resulting in an under-funded status of $73.9 million.
Due to an unrecognized actuarial gain, a liability of $96.4 million was
reflected on Conectiv's Consolidated December 31, 1999 Balance Sheet.
During 1999, CRP was billed by associated Conectiv subsidiaries for
$2.5 million for other postretirement service and interest costs; net
of expected return on assets.
-19-
<PAGE>
Conectiv also maintains 401(k) savings plans for covered
employees, including employees of CRP. Conectiv contributes to the
plan, in the form of Conectiv stock, at varying levels up to $0.50 for
each dollar contributed by employees, for up to 6% of employee base
pay. The amount expensed by CRP for Conectiv's matching contributions
was $1.8 million in 1999.
4. Rents
CRP leases office buildings and business equipment from associate
companies. These leases are accounted for as operating leases.
5. Money Pool
The Money Pool exists to permit affiliate companies to borrow
excess cash from other affiliate companies. Conectiv Resource Partners,
Inc. serves as the Administrator for the System Money Pool.
-20-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Years Ended December 31, 1999 and 1998
(In Thousands)
SCHEDULE XV - COMPARATIVE STATEMENT OF INCOME
<TABLE>
<CAPTION>
Current Prior
Year Year
Account Description 1999 1998
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies $ 253,927 $ 136,562
458 Services rendered to nonassociate companies - -
421 Miscellaneous income or loss
- -
------------------------------------
TOTAL INCOME $ 253,927 $ 136,562
====================================
EXPENSE
912-13 Marketing & Advertising $ 288 $ 273
920 Salaries and wages 92,785 46,578
921 Office Supplies and expenses 18,871 8,157
922 Administrative expenses transferred-credit - -
923 Outside services employed 65,985 28,803
924 Property insurance 1,261 -
925 Injuries and damages 1,429 574
926 Employee pensions and benefits 26,809 18,608
928 Regulatory commission expense - -
929 Duplicate charges-credit (4,153) (246)
930.1 General advertising expense 145 755
930.2 Miscellaneous general expenses 9,935 18,114
931 Rents 28,187 13,517
932 Maintenance of structures and equipment - -
403 Depreciation and amortization expense 7,194 611
408 Taxes other than income taxes 202 14
409 Income taxes (6,245) (1,319)
410 Provision for deferred income taxes 6,350 1,345
411 Provision for deferred income taxes-credit - -
411.5 Investment tax credit - -
426.1 Donations 1,201 49
426.5 Other deductions - -
427 Interest on long-term debt - -
430 Interest on debt to associate companies 3,788 755
431 Other interest expense
-----------------------------------
TOTAL EXPENSES $ 254,032 $ 136,588
-----------------------------------
NET INCOME OR (LOSS) $ (105) $ (26)
===================================
</TABLE>
-21-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
ANALYSIS OF BILLING
ASSOCIATE COMPANIES - ACCOUNT 457
<TABLE>
<CAPTION>
Direct Indirect Compensation Total
Costs Costs For Use Amount
Name of Associate Company Charged Charged of Capital Billed
457-1 457-2 457-3
<S> <C> <C> <C> <C>
Delmarva Power & Light Company $ 60,945 $ 76,917 $ 2,080 $ 139,942
Atlantic City Electric Company 30,383 47,530 1,322 79,235
Delmarva Capital Investments 104 204 2 310
Conectiv Energy Supply, Inc. 576 532 - 1,108
DCTC-Burney, Inc. 84 - - 84
Petron Oil 33 55 - 88
Conectiv Operating Services Co. 221 328 - 549
Delmarva Services Company - 20 4 24
Conectiv Services, Inc. 1,599 2,716 48 4,363
Power Consulting Group, Inc. 173 - - 173
Conectiv Energy, Inc. 296 - - 296
Conectiv Solutions LLC 3,928 5,446 68 9,442
Conectiv Communications, Inc. 7,546 7,380 221 15,147
Atlantic Southern Properties 9 100 4 113
Atlantic Generation, Inc. 307 179 - 486
ATE Investment, Inc. 35 6 - 41
King Street Assurance LTD 6 - - 6
Enerval, LLC 510 42 - 552
Thermal Energy Limited Partnership 96 - - 96
Atlantic Jersey Thermal Systems Inc. 1 - - 1
Conectiv Thermal Systems 384 841 39 1,264
Conectiv Holding Company, Inc. 1 606 - 607
---------- ---------- ----------- -----------
TOTAL $ 107,237 $ 142,902 $ 3,788 $ 253,927
========== ========== =========== ===========
</TABLE>
-22-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES - ACCOUNT 458
<TABLE>
<CAPTION>
Direct Indirect Compensation Excess Total
Costs Costs For Use Total or Amount
Name of Nonassociate Company Charged Charged of Capital Cost Deficiency Billed
458-1 458-2 458-3 458-4
<S> <C> <C> <C> <C> <C> <C>
TOTAL $ - $ - $ - $ - $ - $ -
======== ======== ========= ======== ========= =======
</TABLE>
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociate company.
NOT APPLICABLE
-23-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE XVI - ANALYSIS OF CHARGES FOR SERVICES
ASSOCIATE AND NONASSOCIATE COMPANIES
<TABLE>
<CAPTION>
Associate Nonassociate
Company Charges Company Charges
Direct Indirect Direct Indirect Direct
Description of Items Costs Costs Total Costs Costs Total Costs
<S> <C> <C> <C> <C> <C> <C> <C>
912-13 Marketing & Advertising $ - $ 288 $ 288 $ - $ - $ - $ -
920 Salaries and wages 66,487 26,298 92,785 - - - 66,487
921 Office Supplies and expenses 7,507 11,364 18,871 - - - 7,507
922 Administrative expenses transferred-credit - - - - - - -
923 Outside services employed 13,941 52,044 65,985 - - - 13,941
924 Property insurance - 1,261 1,261 - - - -
925 Injuries and damages - 1,429 1,429 - - - -
926 Employee pensions and benefits 12,868 13,941 26,809 - - - 12,868
928 Regulatory commission expense - - - - - - -
929 Duplicate charges-credit - (4,153) (4,153) -
930.1 General advertising expense - 145 145 - - - -
930.2 Miscellaneous general expenses 6,434 3,501 9,935 - - - 6,434
931 Rents - 28,187 28,187 - - - -
932 Maintenance of structures and equipment - - - - - - -
403 Depreciation and amortization expense - 7,194 7,194 - - - -
408 Taxes other than income taxes - 202 202 - - - -
409 Income taxes - (6,350) (6,350) - - - -
410 Provision for deferred income taxes - 6,350 6,350 - - - -
411 Provision for deferred income taxes-credit - - - - - - -
411.5 Investment tax credit - - - - - - -
426.1 Donations - 1,201 1,201 - - - -
426.5 Other deductions - - - - - - -
427 Interest on long-term debt - - - - - - -
431 Other interest expense - - - - - - -
---------------------------------------------------------------------------
TOTAL EXPENSES $ 107,237 $ 142,902 $250,139 $ - $ - $ - $107,237
===========================================================================
Compensation for Use of Equity Capital
430 Interest on debt to associate companies 3,788 - - - $ -
-------------------------------------------------
TOTAL COST OF SERVICES $253,927 $ - $ - $ - $107,237
=================================================
<CAPTION>
Total Charges
for Service
Indirect
Costs Total
<S> <C> <C> <C>
912-13 Marketing & Advertising $ 288 $ 288
920 Salaries and wages 26,298 92,785
921 Office Supplies and expenses 11,364 18,871
922 Administrative expenses transferred-credit - -
923 Outside services employed 52,044 65,985
924 Property insurance 1,261 1,261
925 Injuries and damages 1,429 1,429
926 Employee pensions and benefits 13,941 26,809
928 Regulatory commission expense - -
929 Duplicate charges-credit (4,153) (4,153)
930.1 General advertising expense 145 145
930.2 Miscellaneous general expenses 3,501 9,935
931 Rents 28,187 28,187
932 Maintenance of structures and equipment - -
403 Depreciation and amortization expense 7,194 7,194
408 Taxes other than income taxes 202 202
409 Income taxes (6,350) (6,350)
410 Provision for deferred income taxes 6,350 6,350
411 Provision for deferred income taxes-credit - -
411.5 Investment tax credit - -
426.1 Donations 1,201 1,201
426.5 Other deductions - -
427 Interest on long-term debt - -
431 Other interest expense - -
----------------------------
TOTAL EXPENSES $ 142,902 $ 250,139
============================
Compensation for Use of Equity Capital
430 Interest on debt to associate companies 3,788 3,788
----------------------------
TOTAL COST OF SERVICES $ 146,690 $ 253,927
============================
</TABLE>
INSTRUCTION: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis
of billing schedules.
-24-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
Total Executive Environmental Corporate SAP
Description of Items Amount Overhead Management & Safety Communications Services
<S> <C> <C> <C> <C> <C> <C> <C>
912-13 Marketing & Advertising $ 288 $ - $ - $ - $ 1 $ -
920 Salaries and wages 92,785 1,620 2,789 1,786 630 1,530
921 Office Supplies and expenses 18,871 (6) 358 152 922 1,216
922 Administrative expenses transferred-credit -
923 Outside services employed 65,985 28 1,308 157 1,472 2,266
924 Property insurance 1,261
925 Injuries and damages 1,429
926 Employee pensions and benefits 26,809 26,544
928 Regulatory commission expense -
929 Duplicate Charges-credit (4,153) (1)
930.1 General advertising expense 145 1 135
930.2 Miscellaneous general expenses 9,935 75 67 48 56 40
931 Rents 28,187 4 21 3 12 3,564
932 Maintenance of structures and equipment -
403 Depreciation and amortization expense 7,194
408 Taxes other than income taxes 202
409 Income taxes (6,245) (6,245)
410 Provision for deferred income taxes 6,350 6,350
411 Provision for deferred income taxes-credit -
411.5 Investment tax credit -
426.1 Donations 1,201 (2) 4 6 1,168
426.5 Other deductions -
427 Interest on long-term debt -
430 Interest on debt to associate companies 3,788 2,524
431 Other interest expense -
-----------------------------------------------------------------------------
TOTAL EXPENSES $ 254,032 $30,893 $ 4,547 $ 2,151 $ 4,396 $ 8,616
=============================================================================
<CAPTION>
Information Customer Corporate
Services Marketing Service Secretary
<S> <C> <C> <C> <C> <C>
912-13 Marketing & Advertising $ - $ 133 $ 1 $ -
920 Salaries and wages 7,804 1,403 17,273 170
921 Office Supplies and expenses 6,160 207 2,696 156
922 Administrative expenses transferred-credit
923 Outside services employed 24,588 10,022 7,202 435
924 Property insurance
925 Injuries and damages
926 Employee pensions and benefits
928 Regulatory commission expense
929 Duplicate Charges-credit (2,180) (1,698)
930.1 General advertising expense 6
930.2 Miscellaneous general expenses 2,313 536 4,650 4
931 Rents 11,001 3 1,862
932 Maintenance of structures and equipment
403 Depreciation and amortization expense 2,965 1,355
408 Taxes other than income taxes
409 Income taxes
410 Provision for deferred income taxes
411 Provision for deferred income taxes-credit
411.5 Investment tax credit
426.1 Donations 2 5
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies 489 95
431 Other interest expense
--------------------------------------------------------
TOTAL EXPENSES $ 53,140 $ 12,306 $ 33,447 $ 765
========================================================
</TABLE>
-25-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
Internal Human
Description of Items Audit Legal Resources Controller Planning
<S> <C> <C> <C> <C> <C>
912-13 Marketing & Advertising $ - $ - $ 2 $ - $ -
920 Salaries and wages 402 1,185 4,325 2,469 1,232
921 Office Supplies and expenses 15 112 581 71 110
922 Administrative expenses transferred-credit
923 Outside services employed 67 210 4,565 533 2,223
924 Property insurance
925 Injuries and damages 10 9
926 Employee pensions and benefits 260
928 Regulatory commission expense
929 Duplicate Charges-credit (17)
930.1 General advertising expense 2
930.2 Miscellaneous general expenses 10 2 411 (16) 11
931 Rents 5 188 6
932 Maintenance of structures and equipment
403 Depreciation and amortization expense 837
408 Taxes other than income taxes 21
409 Income taxes
410 Provision for deferred income taxes
411 Provision for deferred income taxes-credit
411.5 Investment tax credit
426.1 Donations 1 1
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies 184
431 Other interest expense
---------------------------------------------------------------
TOTAL EXPENSES $ 499 $ 1,502 $ 11,386 $ 3,064 $ 3,576
===============================================================
<CAPTION>
Risk &
Description of Items Finance Tax Insurance Treasury Regulatory
<S> <C> <C> <C> <C> <C>
912-13 Marketing & Advertising $ - $ - $ - $ - $ -
920 Salaries and wages 1,096 525 634 1,115 1,589
921 Office Supplies and expenses 81 97 24 108 29
922 Administrative expenses transferred-credit
923 Outside services employed 61 621 8 1,546 26
924 Property insurance 1,261
925 Injuries and damages 1,410
926 Employee pensions and benefits
928 Regulatory commission expense
929 Duplicate Charges-credit
930.1 General advertising expense
930.2 Miscellaneous general expenses 4 (4) 2 13 9
931 Rents 18 61 2 5
932 Maintenance of structures and equipment
403 Depreciation and amortization expense
408 Taxes other than income taxes
409 Income taxes
410 Provision for deferred income taxes
411 Provision for deferred income taxes-credit
411.5 Investment tax credit
426.1 Donations
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies
431 Other interest expense
----------------------------------------------------------------
TOTAL EXPENSES $ 1,260 $ 1,300 $ 3,339 $ 2,784 $ 1,658
================================================================
</TABLE>
-26-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
Procurement Facility Real Vehicle
Description of Items & Supply Chain Services Estate Management Security
<S> <C> <C> <C> <C> <C>
912-13 Marketing & Advertising $ - $ - $ - $ - $ -
920 Salaries and wages 1,448 415 396 319 107
921 Office Supplies and expenses 115 26 5 27 7
922 Administrative expenses transferred-credit
923 Outside services employed 2,349 201 2 43 336
924 Property insurance
925 Injuries and damages
926 Employee pensions and benefits 1
928 Regulatory commission expense
929 Duplicate Charges-credit (19) (1)
930.1 General advertising expense
930.2 Miscellaneous general expenses 503 113 8 78 6
931 Rents 10,924 2 7
932 Maintenance of structures and equipment
403 Depreciation and amortization expense 215 35
408 Taxes other than income taxes 173
409 Income taxes
410 Provision for deferred income taxes
411 Provision for deferred income taxes-credit
411.5 Investment tax credit
426.1 Donations
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies 255 5
431 Other interest expense
---------------------------------------------------------------------
TOTAL EXPENSES $ 4,415 $ 12,304 $ 412 $ 514 $ 456
=====================================================================
<CAPTION>
Document Delivery Supply Enterprises
Description of Items Services Services Services Service
<S> <C> <C> <C> <C>
912-13 Marketing & Advertising $ - $ 2 $ 146 $ 3
920 Salaries and wages 559 14,075 22,521 3,368
921 Office Supplies and expenses 3,613 410 1,136 443
922 Administrative expenses transferred-credit
923 Outside services employed 2,367 1,514 1,308 527
924 Property insurance
925 Injuries and damages
926 Employee pensions and benefits 4
928 Regulatory commission expense
929 Duplicate Charges-credit (21) (216)
930.1 General advertising expense 1
930.2 Miscellaneous general expenses 130 264 546 56
931 Rents 228 104 63 104
932 Maintenance of structures and equipment
403 Depreciation and amortization expense 1,552 222 13
408 Taxes other than income taxes 6 2
409 Income taxes
410 Provision for deferred income taxes
411 Provision for deferred income taxes-credit
411.5 Investment tax credit
426.1 Donations 3 11 2
426.5 Other deductions
427 Interest on long-term debt
430 Interest on debt to associate companies 186 38 12
431 Other interest expense
---------------------------------------------------------
TOTAL EXPENSES $ 6,897 $ 18,099 $ 25,777 $ 4,529
=========================================================
</TABLE>
-27-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
DEPARTMENTAL ANALYSIS OF SALARIES - ACCOUNT 920
<TABLE>
<CAPTION>
Departmental Salary Expense Number of
Name of Department Included in Amounts Billed to Personnel
Indicate each department Total Parent Other Non End of
or service function. Amount Company Associates Associates Year
<S> <C> <C> <C> <C> <C>
Executive Management $ 2,789 $ 109 $ 2,680 $ - 12
Environmental & Safety 1,786 - 1,786 - 13
Corporate Communications 630 - 630 - 15
SAP Applications 1,530 - 1,530 - 30
Information Systems 7,804 - 7,804 - 103
Marketing 1,403 - 1,403 - 18
Customer Services 17,273 - 17,273 - 385
Corporate Secretary 170 - 170 - 1
Internal Audit 402 - 402 - 6
Legal 1,185 119 1,066 - 14
Human Resources 4,325 - 4,325 - 56
Controller 2,469 26 2,443 - 39
Planning 1,232 56 1,176 - 9
Finance 1,096 - 1,096 - 10
Tax 525 - 525 - 9
Risk & Insurance 634 - 634 - 13
Treasury 1,115 63 1,052 - 12
Regulatory 1,589 - 1,589 - 21
Procurement & Supply Chain 1,448 - 1,448 - 29
Facility Services 415 - 415 - 8
</TABLE>
-28-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
DEPARTMENTAL ANALYSIS OF SALARIES - ACCOUNT 920 (continued)
<TABLE>
<CAPTION>
Departmental Salary Expense Number of
Name of Department Included in Amounts Billed to Personnel
Indicate each department Total Parent Other Non End of
or service function. Amount Company Associates Associates Year
<S> <C> <C> <C> <C> <C>
Real Estate $ 396 $ - $ 396 $ - 10
Vehicle Management 319 - 319 - 5
Security 107 - 107 - 3
Document Services 559 - 559 - 13
Delivery Shared Services 14,075 - 14,075 - 201
Supply Shared Services 22,521 - 22,521 - 287
Enterprises Shared Services 3,368 - 3,368 - 74
Corporate 1,620 - 1,620 - -
-------- ------- -------- ------ ------
$ 92,785 $ 373 $ 92,412 $ - 1,396
======== ======= ======== ====== ======
</TABLE>
-29-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
OUTSIDE SERVICES EMPLOYED - ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If
the aggregate amounts paid to any one payee and included within
one subaccount is less than $100,000, only the aggregate number
and amount of all such payments included within the subaccount
need be shown. Provide a subaccount for each type of service.
<TABLE>
<CAPTION>
Relationship
Recruiting Services "A"=Associate
From Whom Purchased Description "NA"=Nonassociate Amount
<S> <C> <C> <C>
Temporary Services:
INTEGRITY STAFFING SOLUTIONS Temporary Employment Services NA $ 915
JOULE TEMPORATIES INC. Collection Services NA 901
MANPOWER TEMPORARY SERVICES Temporary Employment Services NA 860
THE CALDWELL GROUP Temporary Employment Services NA 823
PLACERS TEMPS Market Research Consultants NA 542
MAXIM GROUP Market Research Consultants NA 378
RHI CONSULTING Temporary Employment Services NA 224
ACCOUNTEMPS Temporary Employment Services NA 146
MISCELLANEOUS NA 193
-------
(5 ITEMS LESS THAN $100,000)
TOTAL $4,982
-------
Market Research Services:
MARKET STRATEGIES INC Market Research Consultants NA $ 216
MISCELLANEOUS NA 498
-------
(11 ITEMS LESS THAN $100,000)
TOTAL $ 714
-------
Maintenance Services:
FORTE SYSTEMS, INC. Computer Consultants/Services NA $4,635
XEROX BUSINESS SERVICES Copier Services NA 949
SUN MICROSYSTEMS INC Computer Consultants/Services NA 717
DORSET PROFESSIONAL SERVICES INC Computer Consultants/Services NA 598
IBM CORPORATION Computer Consultants/Services NA 465
WILTEL Computer Consultants/Services NA 98
CORPORATE INTERIORS OF DELAWARE INC Consulting Services NA 110
GTE COMMUNICATIONS Communications Services NA 559
HITACHI DATA SYSTEMS Computer Consultants/Services NA 3,145
LUCENT TECHNOLOGIES INC Communications Services NA 278
NETWORK EQUIPMENT TECHNOLOGIES INC Communications Services NA 319
SIEMENS INFORMATION & TECH Computer Consultants/Services NA 284
VANTIVE CORPORATION Computer Consultants/Services NA 175
NUCLEUS CORPORATION Computer Consultants/Services NA 219
BANCBOSTON LEASING, INC. Consulting Services NA 127
COMPAQ Computer Consultants/Services NA 107
NEW ENERGY ASSOCIATES LLC Consulting Services NA 169
DECISIONONE Computer Consultants/Services NA 15
MISCELLANEOUS NA 678
-------
(56 ITEMS LESS THAN $100,000)
TOTAL $13,647
-------
</TABLE>
-30-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
OUTSIDE SERVICES EMPLOYED - ACCOUNT 923 (Continued)
<TABLE>
<CAPTION>
Relationship
"A"=Associate
From Whom Purchased Description "NA"=Nonassociate Amount
<S> <C> <C> <C>
Legal Services:
THE WALLACE LAW REGISTRY Legal Temporary Services NA $ 12
BOOZ ALLEN & HAMILTON Professional Legal Services NA 518
SKADDEN ARPS SLATE MEAGEHER & FLOM Professional Legal Services NA 983
KLETT LIEBER ROONEY & SCHORLING Professional Legal Services NA 106
LEBOEUF, LAMB, GREENE & MACRAE Professional Legal Services NA 286
PEPPER HAMILTON & SCHEETZ Professional Legal Services NA 238
POTTER ANDERSON & CORROON Professional Legal Services NA 620
THELEN REID & PRIEST LLP Professional Legal Services NA 191
MISCELLANEOUS NA 533
--------
(18 ITEMS LESS THAN $100,000)
TOTAL $ 3,487
--------
Audit Services:
PRICEWATERHOUSECOOPERS LLP Audit Services NA $ 266
--------
TOTAL $ 266
--------
Internet Services:
STANTON COMMUNICATIONS Communications Services NA $ 823
MISCELLANEOUS NA 54
--------
(3 ITEMS LESS THAN $100,000)
TOTAL $ 877
--------
Advertising Services:
GILLESPIE INC Advertising Services NA $ 5,875
HARTING GRAPHICS LTD Graphics Design Services NA 299
MISCELLANEOUS NA 132
--------
(2 ITEMS LESS THAN $100,000)
TOTAL $ 6,306
--------
Training Services:
RWD TECHNOLOGIES INC. Training Services NA $ 388
MISCELLANEOUS NA 314
--------
(13 ITEMS LESS THAN $100,000)
TOTAL $ 702
--------
Other Services:
DELOITTE & TOUCHE LLP Operations & Computer Consulting NA $ 8,758
FLK CONSULTING SERVICES Consulting Services NA 1,719
NAVIGANT CONSULTING GROUP Consulting Services NA 1,326
LOCHRIDGE & COMPANY Market Research Services NA 1,230
ERNST & YOUNG LLP Management Consulting Services NA 1,105
UTILITY SYSTEMS SOLUTIONS Operations Consulting Services NA 976
</TABLE>
-31-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
OUTSIDE SERVICES EMPLOYED - ACCOUNT 923 (Continued)
<TABLE>
<CAPTION>
Relationship
"A"=Associate
From Whom Purchased Description "NA"=Nonassociate Amount
<S> <C> <C> <C>
SAP AMERICA INC Computer Consulting Services NA 935
DMR CONSULTING Consulting Services NA 755
INTERNATIONAL NETWORK SERVICES Consulting Services NA 653
ACSYS Recruiting Services NA 641
THE BANK OF NEW YORK Treasury Services NA 622
CREDIT SUISSE FIRST BOSTON Consulting Services NA 611
AUXIS INC Consulting Services NA 585
GTE COMMUNICATIONS Communications Services NA 559
NCO FINANCIAL SYSTEM INC Collection Services NA 492
FUTURTECH CONSULTING INC Computer Consulting Services NA 453
BROOKS COURIER SERVICE INC Courier Services NA 429
THE BLACKSTONE GROUP LP Financial Consulting Services NA 426
BAIN & COMPANY INC Financial Consulting Services NA 422
ORACLE CORPORATION Computer Consulting Services NA 419
COMDISCO DISASTER RECOVERY Disaster Recovery Services NA 405
GARY GASPER HR Staffing Services NA 391
TOWERS PERRIN Actuarial Services NA 381
OXFORD GLOBAL RESOURCESINC Consulting Services NA 361
GENESIS MICRO SOLUTIONSINC Consulting Services NA 351
BELL & HOWELL ACCEPTANCE CORP Consulting Services NA 334
THE SIEGFRIED GROUP LLP Financial Consulting Services NA 333
FOUR STAR ASSOC INC Consulting Services NA 331
PBS CONSULTING, INC. Consulting Services NA 319
PROTECTION TECHNOLOGY, INC. Computer Consulting Services NA 317
TR SYSTEMS INC Consulting Services NA 284
CAB TECHNOLOGIES INC Consulting Services NA 266
INFO SYSTEMS INC Computer Consulting Services NA 245
INTERNATIONAL THOUGHT LEADERSHIP CN Consulting Services NA 242
LOGICAL BUSINESS SOLUTIONS Consulting Services NA 239
AIRBORNE EXPRESS Courier Services NA 219
COMPUTER PEOPLE INC Computer Consulting Services NA 204
AJILON Computer Consulting Services NA 183
WEFA INC Consulting Services NA 177
RELIABLE TELCOM INC Communications Services NA 175
TRANSACTION INFORMATION SYSTEMS INC Computer Consulting Services NA 170
RR DONNELLEY RECEIVABLES Financial Printing Services NA 169
MENTOR CONSULTANTS Consulting Services NA 168
RPM SYSTEMS Consulting Services NA 167
KEANE INC Computer Consulting Services NA 165
ARTHUR ANDERSON LLP Financial Consulting Services NA 160
MAY & SPEH INC Consulting Services NA 158
I-CORE Consulting Services NA 157
COMPUTER TASK GROUP Computer Consulting Services NA 156
FOSTER CHAMBERLAIN Consulting Services NA 152
</TABLE>
-32-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
OUTSIDE SERVICES EMPLOYED - ACCOUNT 923 (Continued)
<TABLE>
<CAPTION>
Relationship
"A"=Associate
From Whom Purchased Description "NA"=Nonassociate Amount
<S> <C> <C> <C>
OUTSOURCING PARTNERSHIP Consulting Services NA 146
RJL PARTNERS INC Consulting Services NA 146
MODERN PRESS INC Consulting Services NA 130
COMPUTER AID, INC. Recruiting Services NA 116
SALESLOGIX Consulting Services NA 126
FOSTER WHEELER USA CORP Consulting Services NA 125
WATSON WYATT & COMPANY Human Resources, Comp & Benefits NA 120
HEIDRICK & STRUGGLES INC Consulting Services NA 118
MBS/MULTIMODE INC Collection Services NA 118
THOMAS KEENAN Consulting Services NA 117
COMPUTER AID, INC. Computer Services NA 116
ADP INVESTOR COMMUNICATION SERVICES Consulting Services NA 115
NEW YORK STOCK EXCHANGE Financial Services NA 104
THE GELFOND GROUP Consulting Services NA 102
MISCELLANEOUS NA 2,810
-------
(193 ITEMS LESS THAN $100,000)
TOTAL $35,004
-------
GRAND TOTAL $65,985
=======
</TABLE>
-33-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
EMPLOYEE PENSIONS AND BENEFITS - ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited to
$25,000.
Description Amount
Pension $ 4,295
Medical 7,238
OPEB expenses 2,496
Life insurance 1,025
Dental 847
Vision 137
Savings & Thrift 1,750
Payroll tax expenses 6,629
Education Plan 126
Long-Term Disability 179
Employee Association 70
Workman's Compensation Insurance 961
Wellness 51
Administration Fees 96
Employee deductions (811)
Other 1,720
-------
TOTAL $26,809
=======
-34-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
GENERAL ADVERTISING EXPENSES - ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according to
the nature of the advertising and as defined in the account
definition. If a particular class includes an amount in excess of
$3,000 applicable to a single payee, show separately the name of
the payee and the aggregate amount applicable thereto.
Description Name of Payee Amount
Yellow Pages Advertising Bell Atlantic $ 128
Newspaper Advertising Alstin Advertising 4
Miscellaneous 13
------
TOTAL $ 145
======
-35-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
MISCELLANEOUS GENERAL EXPENSES - ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses", classifying such expenses
according to their nature. Payments and expenses permitted by
Section 321(b) (2) of the Federal Election Campaign Act, as
amended by Public Law 94-283 in 1976 (2 U.S.C. Section 441 (b)
(2)) shall be separately classified.
Description Amount
Material expenses $2,201
Computer systems expense 2,103
IT Phone expenses 1,417
Collection Agency fees 1,090
Internal consulting 731
Utilities expense 455
Sponsorships/Associations 436
Software maintenance 259
Training expenses 164
Relocation costs 99
Recruiting 90
Employee physicals 34
Employee background checks 30
Logo items 23
Legal fees 13
Other Miscellaneous expenses 790
------
$9,935
======
-36-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
RENTS - ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents",
classifying such expenses by major groupings of property, as
defined in the definition of the Uniform System of Accounts.
Type of Property Amount
Office Rents $ 11,197
Office Equipment - Computer 16,520
Vehicle Leases 137
Miscellaneous Rents 333
---------
TOTAL $ 28,187
=========
-37-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
TAXES OTHER THAN INCOME TAXES - ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than U.S.
Government taxes, and (2) U.S. Government taxes. Specify each of
the various kinds of taxes and show the amounts thereof. Provide a
subtotal for each class of tax.
Kind of Tax Amount
(1) Other Than U.S. Government Taxes
City of Wilmington $ 24
State of Delaware 1
Property Taxes 173
Other Miscellaneous Taxes 4
-------
SUBTOTAL $ 202
(2) U.S. Government Taxes $ -
SUBTOTAL $ -
-------
TOTAL $ 202
=======
-38-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
DONATIONS - ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000 may
be shown in lieu of details.
<TABLE>
<CAPTION>
Name of Recipient Purpose of Donation Amount
<S> <C> <C> <C>
United Way Community Welfare $ 254
Good Neighbor Energy Fund Shareholder Fund Distribution 64
Prosperity New Jersey Community Welfare 50
Local Initiative Support Corp Community Welfare 27
Delaware Public Policy Community Welfare 25
Shore Memorial Hospital Community Welfare 25
The Nature Conservation Land protection efforts 21
New Jersey Shares Community Welfare 19
University of Delaware Scholarship Funds 19
American Heart Association Community Welfare 18
Business/Public Education Council Community Welfare 15
Delaware Arts Stabilization Community Welfare 15
Delaware State Chamber of Commerce Community Welfare 14
Jewish Community Center of Atlantic City Community Welfare 13
Cecil Community College Community Welfare 12
Community Service Building Corp Grant 10
Delaware Community Foundation Educational Fund 10
Salisbury State University Educational Fund 10
YMCA Building Campaign 10
Bob Baker Memorial Fund Memorial Fund 8
Urban Youth Golf Program-Atlantic City Community Welfare 8
Utility Business Education Annual Support 8
City of Wilmington Community Welfare 7
Junior Achievement of DE Community Welfare 7
March of Dimes Community Welfare 6
West End Neighborhood House Community Welfare 6
Delaware College of Art & Design Capital Improvements 6
Hispanic Alliance Community Welfare 6
Junior Achievement of South Jersey Community Welfare 6
Boys and Girls Club Community Welfare 5
Delaware Center for the Arts Community Welfare 5
Pennsylvania Congress of Parents Community Welfare 5
Rutgers University Educational Fund 5
Slam Dunk to the Beach Community Welfare 5
Sussex Pregnancy Care Center Community Welfare 8
The Arc of Delaware Grant 5
Waterfront Arts Community Welfare 5
West Jersey Health and Hospital Community Welfare 5
Swingin with a Star Charity Golf Tournament 5
</TABLE>
-39-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
DONATIONS - ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000 may
be shown in lieu of details.
<TABLE>
<CAPTION>
Name of Recipient Purpose of Donation Amount
<S> <C> <C>
Meals on Wheels Delaware Community Welfare $4
Goldey Beacum College Educational Fund 4
Reading is Fundamental Community Welfare 4
Delaware Technical and Community College Educational Fund 4
Rowan College Foundation Educational Fund 4
William P Frank Scholarship Fund Scholarship Fund 4
Wilmington Music School Educational Fund 3
Wor-Wic Community College Endowment Fund 3
Cohanzick Zoological Society Community Welfare 3
Delaware State University Scholarship 3
Jersey Shore Council, BSA Community Welfare 3
New Jersey Council on the Arts Community Welfare 3
Public Allies Delaware Community Welfare 3
Society of Women Engineers Community Welfare 3
Other Miscellaneous Donations 401
-------
TOTAL $ 1,201
=======
</TABLE>
-40-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
OTHER DEDUCTIONS - ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5, "Other
Deductions", classifying such expenses according to their nature.
Description Name of Payee Amount
$ -
TOTAL $ -
=======
-41-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
SCHEDULE XVIII - NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars as
to any significant increase in services rendered or expenses
incurred during the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by reference.
See Notes to Financial Statements, Schedule XIV, pages 19-20
-42-
<PAGE>
CONECTIV RESOURCE PARTNERS, INC.
Organization Chart
Howard E. Cosgrove
Chairman & CEO
John C. van Roden, Jr.
Senior Vice President & CFO
Barbara S. Graham
Senior Vice President
Thomas S. Shaw
Executive Vice President
Barry R. Elson
Executive Vice President
Robert L. Aveyard
Vice President
David Blake
Vice President
Donald E. Cain
Vice President
John W. Land
Vice President
Lonnie C. Scott
Vice President
Phillip S. Reese
Vice President & Treasurer
Moira K. Donoghue
Secretary
Diana C. DeAngelis
Assistant Secretary
Elizabeth M. Miller
Assistant Secretary
James P. Lavin
Controller
-43-
<PAGE>
CONECTIV RESOURCE PARTNERS, INC
Current Methods of Allocation
Described below are the methods used to allocate costs of the Service Company to
Client Companies which cannot practicably be direct charged.
Service Department
or Function Basis of Allocation *
----------- ---------------------
Executive Management Blended ratio
Procurement & Supply Chain Material stock expense ratio
Vehicle Resource Management Vehicle $ ratio
Facilities Services Square footage ratio for
office space and non-
office space
Document Services Employee ratio
Real Estate Real estate investment ratio
Security Labor $ ratio
Insurance Administration Blended ratio
Claims Administration Historical claims ratio
Regulatory Affairs Utility cost ratio
Shared Services Administration Blended ratio
Property insurance and miscellaneous
insurance coverage Asset cost ratio
General liability insurance Labor $ ratio
Directors and Officers insurance Asset cost ratio
Cost of Benefits Employee ratio
* Definitions of ratios follows Methods of Allocation pages
-44-
<PAGE>
CONECTIV RESOURCE PARTNERS, INC
Current Methods of Allocation (continued)
Service Department
or Function Basis of Allocation
----------- -------------------
Compensation and Benefits Services Employee ratio
Personnel, Employment and Staffing Employee ratio
Employee/Labor Relations Employee ratio
Training and Management Development Employee ratio
Performance Improvement Employee ratio
Organizational Development Employee ratio
Legal Services Actual legal direct labor
charges of prior year
Audit Services O&M ratio
Management of Customer Care Number of customers ratio
Special Billing Number of special bills ratio
Corporate Marketing O&M ratio
Voice Service Telephone ratio
Data Management Storage ratio
Operations Management CPU time ratio
Applications Support End user ratio
Desktop/Network Support End user ratio
IS General Management and Administration Blended ratio
-45-
<PAGE>
CONECTIV RESOURCE PARTNERS, INC
Current Methods of Allocation (continued)
Service Department
or Function Basis of Allocation
----------- -------------------
Governmental Affairs O&M ratio
Communications Employee ratio
General Corporate Advertising/Branding O&M ratio
Environmental & Safety Blended ratio
Delivery Services T&D O&M ratio
System Operations Services Kwh Output ratio
Maintenance Services Kwh Output ratio
Other Delivery Services T&D O&M ratio
Energy Supply Management
and Administration Kwh generated ratio
Merchant Functions Merchant cost ratio
Supply Engineering and Support Kwh generated ratio
Enterprise Business Group Information Actual Direct labor charges of
Technology Services group
Enterprise Business Group Financial Number of financial analysts
Analysis Services ratio
Enterprise Business Group Call Center Number of call center
representatives ratio
Accounts Payable Accounting Services Number of checks issued ratio
Payroll Accounting Services Number of employees paid ratio
Asset & Project Accounting Services Asset system cost ratio
All Other Financial Services O&M ratio
-46-
<PAGE>
Definition of Service Company Current Allocation Methods
Ratio Title Ratio Description
- ----------- -----------------
Employee Ratio A ratio the numerator of which is the number of
employees of a Client Company, the denominator of
which is the number of employees in all Client
Companies using the service. This ratio will be
calculated quarterly.
Square Footage Ratio
office space A ratio the numerator of which is the number of
square feet of office space occupied by a Client
Company, the denominator of which is the total
number of square feet of office space occupied by
all Client Companies using the service.
non-office space A ratio the numerator of which is the number of
square feet of non-office space occupied by a
Client Company, the denominator of which is the
total number of square feet of non-office space
occupied by all Client Companies using the
service.
Telephone Ratio A ratio the numerator of which is the number of
telephones used by a Client Company, the
denominator of which is the number of telephones
used by all Client Companies using the service.
CPU Time Ratio A ratio the numerator of which is the number of
hours of CPU time used for a particular system
application, the denominator of which is the total
number of CPU hours used by all companies. Costs
are allocated to Orders based on this ratio. That
cost is then either included in the cost of other
Service Company services or directly routed to the
appropriate Client Company.
End User Ratio A ratio the numerator of which is the number of
users of computer systems within a Client Company,
the denominator of which is the total number of
users of computer systems within all Client
Companies using the service.
Labor $ Ratio A ratio the numerator of which is the amount of
labor $ of a Client Company, the denominator of
which is total labor $ for all Client Companies
using the service. This ratio will be calculated
monthly.
Historical Claims Ratio A ratio the numerator of which is the total claims
expense of a Client Company, the denominator of
which is the total claims expense for all Client
Companies using the service.
-47-
<PAGE>
Asset Cost Ratio A ratio the numerator of which is the total cost
of assets in a Client Company, the denominator of
which is the total costs of assets for all Client
Companies using the service. Assets are limited to
plant, property and investments.
O&M Ratio A ratio the numerator of which is the total direct
(i.e., excludes charges allocated by the Service
Company) operations and maintenance expense,
excluding depreciation and fuel costs, of a Client
Company, the denominator of which is total direct
operations and maintenance expense, excluding
depreciation and fuel costs, of all Client
Companies using the service.
Revenue A ratio the numerator of which is the total
revenues of a Client Company, the denominator of
which is the total number of customers for all the
Client Companies using the service.
Number of Customers Ratio A ratio the numerator of which is number of
customers served by a Client Company, the
denominator of which is the total number of
customers for all Client Companies using the
service.
Number of Utility Customers A ratio the numerator of which is number of
Ratio utility customers served by a Client Company, the
denominator of which is the total number of
utility customers for all Client Companies using
the service.
Nuclear Installed A ratio the numerator of which is the nuclear
Capacity Ratio facility installed capacity of a Client Company,
the denominator of which is the total nuclear
facility installed capacity of all Client
Companies using the service.
Materials Stock A ratio the numerator of which is the materials
Expense Ratio stock expense of a Client Company, the denominator
of which is the total materials stock expense of
all Client Companies using the service.
Real Estate Investment A ratio the numerator of which is the cost of real
estate leases and land and buildings owned by a
Client Company, the denominator of which is the
total cost of real estate leases and land and
buildings for all Client Companies using the
service.
Number of Special Bills A ratio the numerator of which is the number of
Ratio special bills issued for a Client Company, the
denominator of which is the total number of
special bills issued for all Client Companies.
Utility Asset Cost Ratio A ratio the numerator of which is the total cost
of utility assets in a Client Company, the
denominator of which is the total costs of utility
assets for all Client Companies using the service.
-48-
<PAGE>
T&D O&M Ratio A ratio the numerator of which is the total direct
(i.e., excludes charges allocated by the Service
Company), operations and maintenance expense,
excluding depreciation and fuel costs, of a
Transmission and Distribution Client Company, the
denominator of which is total direct operations
and maintenance expense, excluding depreciation
and fuel costs, of all Transmission and
Distribution Client Companies.
Kwh Generated Ratio A ratio the numerator of which is the number of
kilowatt hours generated by a Client Company, the
denominator of which is the total number of
kilowatt hours generated by all Client Companies
using the service.
Kwh Output Ratio A ratio the numerator of which is the number of
kilowatt hours purchased and generated by a Client
Company, the denominator of which is the total
number of kilowatt hours purchased and generated
by all Client Companies using the service.
Merchant Cost Ratio A ratio the numerator of which is the dollar
amount of direct charges of the merchant function
to a specific Client Company, the denominator of
which is the total dollar amount of direct charges
of the merchant function to all Client Companies
using the service.
Vehicle $ Ratio A ratio the numerator of which is the dollar
amount of vehicle charges in a specific Client
Company, the denominator of which is the total
amount of vehicle charges in all Client Companies
using the services.
Blended Ratio A composite ratio which is comprised of an average
of the Employee Ratio, the Labor $ Ratio, and the
Asset Cost Ratio, for all Client Companies using
the service.
Number of Checks Issued A ratio the numerator of which is the number of
Ratio checks issued for a Client Company, the
denominator of which is the total number of checks
issued for all Client Companies using the service.
Number of Employees Paid A ratio the numerator of which is the number of
Ratio employees paid for a Client Company, the
denominator of which is the total number of
employees paid for all Client Companies using the
service.
Asset System Cost Ratio A ratio the numerator of which is the total cost
of assets for a Client Company on the asset &
project system, the denominator of which is the
total cost of assets for all Client Companies
using the service on the asset & project system.
-49-
<PAGE>
Data Storage Ratio A ratio the numerator of which is the gigabytes of
data storage space used for a particular system
application, the denominator of which is the total
gigabytes of data storage space used for all
system applications. Costs are allocated to Orders
or Cost Centers based on this ratio. That cost is
then either included in the cost of other Service
Company services or directly routed to the
appropriate Client Company.
Number of Call Center A ratio the numerator of which is the number of
Representatives dedicated call center representatives for a Client
Company, the denominator of which is the total
number of dedicated call center representatives
for all Client Companies using the service.
Number of Financial A ratio the numerator of which is the number of
Analysts Ratio dedicated financial analysts for a Client Company,
the denominator of which is the total number of
financial analysts for all Client Companies using
the service.
-50-
<PAGE>
ANNUAL REPORT OF: Conectiv Resource Partners, Inc.
For the Year Ended December 31, 1999
(In Thousands)
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
Allocation Total
of Indirect Allocation
Company Percent Interest * of Interest
Delmarva Power & Light Company 54.9% $2,080 $2,080
Atlantic City Electric Company 34.9% 1,322 1,322
Delmarva Capital Investments 0.1% 2 2
Conectiv Energy Supply, Inc. - - -
DCTC-Burney, Inc. - - -
Petron Oil - - -
Conectiv Operating Services Co. - - -
Delmarva Services Company 0.1% 4 4
Conectiv Services, Inc. 1.3% 48 48
Power Consulting Group, Inc. - - -
Conectiv Energy, Inc. - - -
Conectiv Solutions LLC 1.8% 68 68
Conectiv Communications, Inc. 5.8% 221 221
Atlantic Southern Properties 0.1% 4 4
Atlantic Generation, Inc. - - -
ATE Investment, Inc. - - -
King Street Assurance LTD - - -
Enerval, LLC - - -
Thermal Energy Limited Partnership - - -
Atlantic Jersey Thermal Systems Inc. - - -
Conectiv Thermal Systems 1.0% 39 39
Conectiv Holding Company, Inc. - - -
------ ------ ------
TOTAL 100.0% $3,788 $3,788
====== ====== ======
* Reflects average BLENDED rate for the year.
-51-
<PAGE>
ANNUAL REPORT OF: CONECTIV RESOURCE PARTNERS, INC
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of 1935
and the rules and regulations of the Securities and Exchange Commission issued
thereunder, the undersigned company has duly caused this report to be signed on
its behalf by the undersigned officer thereunto duly authorized.
Conectiv Resource Partners, Inc.
--------------------------------------
(Name of Reporting Company)
By: /s/ James P. Lavin
--------------------------------------
(Signature of Signing Officer)
James P. Lavin, Controller
--------------------------------------
(Printed Name and Title of Signing
Officer)
Date: April 28, 2000
-52-
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