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): July 6, 1998
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.
Strategic Objectives
Unicom Corporation (the "Company") announced several objectives
(the "Objectives") that it is adopting for the operations of its
electric utility subsidiary, Commonwealth Edison Company
("ComEd"), and its other subsidiaries. Among other things, the
Objectives contemplate that ComEd will undertake steps to offer
for sale its coal-fired generation plants, representing an
approximate aggregate capacity of 5,600 megawatts. Such plants
have an aggregate book value of approximately $1.1 billion.
ComEd would retain its existing nuclear, oil and gas-fired
generating units, which represent an aggregate capacity of
approximately 13,500 megawatts, and its transmission and
distribution assets. A copy of the Objectives is filed as an
exhibit to this Current Report on Form 8-K.
Forward-Looking Statements. Except for historical data, the
information contained in the Objectives constitutes
forward-looking statements. Forward-looking statements are
inherently uncertain and subject to risks; consequently, such
statements should be viewed with caution. Actual results or
experience could differ materially from the forward-looking
statements as a result of many factors. The statements regarding
expected or targeted reductions, as well as overall savings, in
expenditures relating to operations and maintenance, capital, and
fuel and purchased power are subject to the ability of the
Company to achieve targeted workforce reductions and the ability
of internal savings initiatives to achieve expected savings,
changes in the scope of work for needed maintenance and for
capital expenditures, fluctuations in the market prices for fuel
and purchased power, and the ability of the Company to achieve
the nuclear capacity factors that are targeted. The statement
regarding targeted earnings per share is subject to unforeseen
developments in the market for electricity in Illinois resulting
from regulatory changes, the influence of developments in the
regulatory environments in other Midwestern states, adverse
weather conditions, and changes in the overall economy, any or
all of which may affect ComEd's sales of electricity; the ability
of the Company's strategic plans to produce targeted
efficiencies, the ability to complete the disposition of ComEd's
coal-fired generation units at anticipated prices and terms, and
the ability to reduce the Company's cost of capital through the
issuance of asset-backed securities by ComEd. The statement
regarding targeted gross margins for natural gas sales is subject
to the ability of the Company to achieve its goals in the
competitive market for natural gas. The statements regarding the
profitability of the performance contracting business are subject
to the Company's ability to achieve the efficiencies it seeks in
a competitive market. The statement regarding projected sales,
profits and market share in the restructured energy markets are
subject to unforeseen changes in the market as a result of
changing regulations and the emergence of competition. The
statement regarding the estimated return to service of ComEd's
LaSalle nuclear generating units is subject to the concurrence of
the Nuclear Regulatory Commission with proceeding to power
operations for those units and changes in the scope of work. The
earnings per share goals assume 185 million average outstanding
shares in 2000. The Company makes no commitment to disclose any
revisions to the forward-looking statements, or any facts,
events, or circumstances after the date hereof that may bear upon
the forward-looking statements.
Accounting for Impairment of Long-Lived Assets
The Staff of the Securities and Exchange Commission (SEC) has
recently issued interpretive guidance regarding the application
of Statement of Financial Accounting Standards No. 121,
Accounting for the Impairment of Long-Lived Assets to Be Disposed
Of (SFAS 121), when a regulated enterprise such as an electric
utility discontinues regulatory accounting practices for
separable portions of its operations and assets. Under SFAS
121, an asset is considered impaired, and should be written down
to fair value, if its future cash flows are insufficient to
recover the carrying value of the asset. The interpretive
guidance concludes that for purposes of applying SFAS 121,
supplemental regulated cash flows such as a Competitive
Transition Charge (CTC) should be excluded from the cash flows of
assets in a portion of the business not subject to regulatory
accounting practices. If such assets are impaired, a regulatory
asset should be established if such costs are recoverable through
regulated cash flows. The guidance also addresses the extent to
which assets should be grouped to determine impairment.
ComEd discontinued the application of regulatory accounting
principles in December 1997 for the generation portion of its
business and performed an SFAS 121 impairment analysis that
concluded that future revenues, including the collection of the
CTC, expected to be recovered from electric supply services will
be sufficient to cover the costs of its generating assets.
However, reflecting the SEC's recent interpretive guidance,
ComEd's revised impairment evaluation is expected to result in a
plant impairment of approximately $3 billion. Under the
SEC's interpretive guidance the impairment would be reflected as
a reduction in plant assets. Because future CTC revenues
collected through regulated cash flows are expected to provide
recovery of the impaired plant assets, a regulatory asset would
be recorded for the same amount. Accordingly, this balance sheet
reclassification would not effect results of operation. ComEd
expects to record this balance sheet adjustment in the second
quarter of 1998. This regulatory asset will be amortized over a
transition period which is expected to end by 2006, but may be
extended to 2008 if certain conditions are met.
<PAGE>
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: July 6, 1998 By: John C. Bukovski
------------------------
John C. Bukovski
Senior Vice President
COMMONWEALTH EDISON COMPANY
(Registrant)
Date: July 6, 1998 By: John C. Bukovski
------------------------
John C. Bukovski
Senior Vice President
EXHIBIT INDEX
Exhibit
Number Description of Exhibit
99. Unicom Directions
Recommitment, Restructuring and Renewal
Exhibit (99)
UNICOM DIRECTIONS
Recommitment, Restructuring And Renewal
Corporate Purpose
In response to the Illinois Restructuring Act and to
increasing competition in the electric industry, Unicom will
recommit itself to improving operations, restructuring its
finances and operations and renewing its competitive and cultural
focus. Our goal is to maximize shareholder value from the
regulated assets of our Commonwealth Edison subsidiary, while
delivering a 20 percent rate reduction through the transition
period to residential customers, and to grow value through the
operations of our unregulated subsidiaries, strategic alliances
and acquisitions. To that end, we seek to be one of the nation's
most effective operators of regulated energy delivery systems,
one of its most effective operators of nuclear power plants and
the Midwest's leading retail supplier of electricity, natural gas
and energy services.
This plan will serve as a clear but fluid statement of
direction, a concise record of accomplishments and a basis for
holding management accountable for future performance. It will
be reviewed regularly and modified as required to address
developments in the marketplaces and regulatory systems in which
we operate.
Recommitment
Objective 1
We will provide a reliable supply of electricity as the
competitive marketplace evolves and improve the efficiency,
dependability and quality of our delivery service.
The Illinois Restructuring Act heralds the development of a
competitive electricity generation market and will change the
role of utilities in maintaining reliability. Traditionally,
ComEd has been responsible for providing both adequate supply and
reliable delivery. In the future, ComEd will continue to be
obligated to provide a reliable delivery system. However, we
will be obligated to provide adequate supply only for those
customers we continue to serve under tariffs for electricity, but
not for those customers who choose to rely upon the marketplace.
Until the competitive marketplace is functioning well, ComEd
must provide both an adequate supply and reliable delivery of
electricity-a challenge that has been particularly acute this
summer. The combination of severe thunderstorms, hot weather and
equipment outages on our system and neighboring systems have
threatened shortfalls and caused public outcry. The capacity
situation should improve next year when generating stations that
are currently out of service are brought back on line. However,
the capacity situation will remain tight until new entrants build
additional generating capacity. To that end, Unicom must do all
that it can to promote the development of a competitive
generation marketplace so that the burdens and opportunities of
maintaining adequate supplies can be shifted to the marketplace.
Unicom Directions
Page 2
The transmission and distribution business of the future
will be a regulated delivery business with limited opportunities
for earning above a stated return through performance-based rate
making. The key to success in this business will be to meet
customers' changing expectations while reducing costs. While the
frequency and duration of ComEd service interruptions compare
favorably against other utilities nationwide, we must develop
cost effective improvements.
Milestones Achieved
Capacity & Supply
1. The Quad Cities nuclear station was returned to service
adding 1183 mw of capacity for the summer of 1998. Eight of
ComEd's 10 nuclear units are now available for this summer.
2. ComEd's fossil capacity is in its best condition in many
years. Since 1994, we have spent more than $500 million to
improve performance, increase output, and enhance reliability of
our coal-fired plants. We have completed work at Joliet 6;
Joliet 7 & 8; Fisk 19; Waukegan 6, 7,& 8; Powerton 5, and
Crawford 7 & 8. An increase in capacity of 400 mw was obtained
through these efforts.
3. ComEd has purchased over 3,800 mw of replacement power for
June and over 4,200 mw of replacement power for July and August.
In addition, we have reserved over 3,000 mw of firm transmission
capacity, along with over 1,000 additional mw of non-firm
transmission capacity to serve our customers this summer.
4. ComEd installed 100 mw of portable peaking generators at key
substations and also installed 80 portable cooling towers at
Dresden Station to manage potential summer water temperature
limitations.
5. ComEd has supplemented its right to interrupt more than 300
mw of load under certain conditions through service agreements by
paying customers to voluntarily interrupt another 400 mw.
Transmission & Distribution
6. ComEd spent over $350 million on transmission and
distribution capacity upgrades during 1997 and the first half of
1998, outspending the majority of utilities in its peer group.
7. ComEd installed two synchronous condensers at Zion Station
to improve system stability and power import capability in the
northern quadrant of our service territory.
Unicom Directions
Page 3
Milestones Achieved (cont'd)
Market Development
8. ComEd worked extensively with the Chicago Board of Trade to
assist in developing tradable instruments to help hedge risk in
the emerging wholesale and retail power markets. The new
instrument, known as the "ComEd Contract", is expected to begin
exchange trading later this summer.
9. ComEd has evaluated and published a list of preferable sites
for the installation of new generation in Northern Illinois.
Milestones Ahead
Capacity & Supply
1. We must keep the lights and air conditioners on. We must do
everything possible to prevent firm service interruptions due to
capacity limitations.
2. We must return LaSalle 1 to service in the third quarter of
1998 and LaSalle 2 in the first quarter of 1999.
3. We must enhance load curtailment rates and establish
programs to incent customers to reduce load during peak periods.
Transmission & Distribution
4. We must meet the needs of the City of Chicago and the other
communities we serve by improving our distribution delivery
service. In spite of ComEd's record of continuous improvement,
consumer expectations continue to rise and we must keep pace with
that trend without increasing customer rates.
5. We must improve our ability to respond to customers'
questions regarding service interruptions and power quality.
6. We must complete the design and installation of the Lockport
- Lombard - Plano 345kv transmission line to improve power
transfer capability within the ComEd System.
Unicom Directions
Page 4
Milestones Ahead (cont'd)
Market Development
7. We must gain approval of and implement the Midwest
Independent System Operator (ISO) which will enhance reliability
by providing control of transmission operations over a larger
area.
8. We must assist those who wish to build new generation in
connecting to our transmission facilities. This includes
expedited interconnection analysis and the potential sale of
ComEd owned land for the siting of such facilities.
9. We must actively and aggressively explore opportunities with
third parties to develop a Midwest (preferably Chicago-based)
real-time cash electricity exchange. This exchange would
complement the CBOT futures contract, thus insuring Chicago's
place as a center of electricity open market development.
Objective 2
We will become a top quartile operator of competitive nuclear
plants by insisting that each plant produce power safely and
economically.
During the 1960s and 1970s, ComEd committed itself to 13
units-the largest nuclear power program in the United States.
Nuclear power plants present unique political, regulatory and
operating challenges. ComEd did not meet those challenges as
well as others in the industry, which was the principal reason
for ComEd's falling short (by some $5 billion) in earning its
allowed return on equity over the past decade.
ComEd cannot serve its customers well and Unicom cannot
serve its shareholders well without radical improvements in the
operation of its nuclear fleet. These improvements must come
simultaneously with an ever-improving record of meeting the
Nuclear Regulatory Commission's (NRC) requirements and an ever-
improving record of performance by the Institute of Nuclear Power
Operators' (INPO) standards. Passionate commitment to
performance must be accompanied by coldly objective analyses of
the market value of the potential nuclear unit output: those
units that cannot produce power safely at a cost below the
competitive market price will be shut down.
Unicom Directions
Page 5
Milestones Achieved
1. A new management team is in place with the authority,
experience, budget and unambiguous responsibility to improve
operations.
2. The Quad Cities units were returned to service and the
LaSalle training program was re-accredited.
3. For the first six months of 1998, all Nuclear Generation
Group (NGG) operating units are ahead of target:
To date in 1998, we are exceeding the projected capacity
factor by 4.8% (51.5% compared to 46.7%).
Braidwood's capacity factor year-to-date is 98.3%.
Braidwood unit 1 is in its longest continuous run.
Dresden's capacity factor year-to-date is 73.5% -- and
expected to continue to improve.
4. The Zion units were shut down in January 1998 after
determining that required equipment modifications would not
enable the plant to be cost competitive.
5. Planned outage performance for the NGG this year has
improved significantly:
Byron 1 successfully replaced its steam generators
Byron 2 completed the shortest refueling outage in its
history
Dresden 2 also completed its shortest refueling ever
6. We redesigned processes to increase productivity and
performance while decreasing the workforce. The number of
contractors has been reduced from 3,900 to 2,050 and streamlining
the Downers Grove administrative group will reduce staff from
1,075 to 750 .
Milestones Ahead
1. We must bring all 10 of ComEd's nuclear units back to 18- to
24-month operating cycles, without regulatory shutdowns, by 1999.
2. We must achieve capacity factors at all ten units of 80% or
greater by the year 2001.
3. We must achieve top quartile operational performance as
measured by the INPO index for all stations by 2001.
Unicom Directions
Page 6
Milestones Ahead (cont'd)
4. We must demonstrate consistent improvement in NRC
evaluations of the operation and material condition of our plants
by reversing the declining trend at Quad Cities and receiving
permission to restart LaSalle. We must also improve operations
at Dresden and LaSalle so that their performance warrants removal
from the NRC's watch list.
5. We must operate our nuclear plants safely at costs below the
average market price of electricity, or shut them down.
Restructuring
Objective 3
We will refocus ComEd's generation business by offering to sell a
substantial portion of our fossil generation with safeguards to
assure continued availability.
ComEd currently operates 9,400 mw of nuclear plants with a
book value of $9 billion, 5,600 mw of coal-fired plants with a
book value of $1.1 billion, and 4,100 mw of oil and gas-fired
generation. We believe the market value of our coal-fired
generation facilities is greater than their book value and
greater than the value that we could realize through continued
ownership. We intend to sell most or all of these units. This
sale will accomplish three goals: first, to raise cash for new
investments, which are more likely to fulfill our corporate
purpose; next, to facilitate the development of a competitive
wholesale market (thereby implementing the Illinois Restructuring
Act); and finally, to accrue accounting gains which will offset
the further amortization or write-down of our nuclear fleet. We
intend to condition the sale upon short-term power purchase
contracts and call options to assure availability. We expect to
retain Collins Station and our peaking units, which will support
the network with 4,100 mw and prove a valuable adjunct to the
operation of Unicom's nuclear fleet. These retained assets will
be continuously evaluated as the new market evolves.
While this decision implies a departure from the commodity
generation market, where national and international competitors
have a likely edge, we expect to invest some of the proceeds in
distributed generation where customer relationships can provide a
competitive advantage.
Milestones Achieved
1. The Illinois Restructuring Act permits the sale of utility-
owned generating plants as long as supply reliability is not
impaired and permits utilities to write-down other assets
consistent with generally accepted accounting principles.
Unicom Directions
Page 7
Milestones Achieved (cont'd)
2. ComEd pioneered the sale of generation facilities in this
market by selling its State Line and Kincaid stations subject to
power purchase agreements.
Milestones Ahead
1. We must design a sale process that will make it possible to
conclude a transaction upon acceptable terms in 1999.
2. We must establish short-term power purchase agreements with
the new owner that will cover the period until all customers have
choice. These power purchase agreements may also include call
options on the full output of the generating stations.
3. We must work with union leadership to determine sale
provisions that will provide as many opportunities for employees
as possible, while obtaining maximum value for the coal plants.
4. We must develop severance and early retirement plans for
employees who will not be continuing employment with the new
owner.
5. We must establish incentive plans to maintain our focus on
adhering to high operating standards during this transition
period.
Objective 4
We will deliver competitive earnings while restructuring the
balance sheet to reflect the realities of the marketplace and the
duration of our transition charges.
ComEd provides nearly all of Unicom's net income and will
continue to do so for the next several years as Unicom invests in
new unregulated activities. However, the Illinois Restructuring
Act requires ComEd to reduce rates resulting in revenue
reductions of an estimated $160 million in 1998 and $400 million
in 1999 and caps ComEd's rates until January 1, 2005. Therefore,
Unicom must cut costs and improve operations to earn reasonable
returns over the next few years and maintain its dividend.
Unicom must also adopt a strict approach to resource allocation,
continuously assess the economic viability of each of its
activities and pursue opportunities which prove profitable while
exiting ventures which prove unrewarding. The fossil plant sale
and operating efficiency improvements should enhance earnings
over the next several years and make mergers and acquisitions
more attractive to shareholders. Unicom will continue to
evaluate these opportunities. By the end of the transition
period provided by the Restructuring Act, our nuclear investment
must correlate with its potential market value. Over $9 billion
is now on the books for these plants and market prices are
unlikely to allow for full recovery of this investment.
Unicom Directions
Page 8
Milestones Achieved
1. The Illinois Restructuring Act provides a transition period
for the introduction of retail competition, transition charges to
recover some of ComEd's fixed costs, and provisions for the
issuance of bonds backed in part by those charges to reduce
capital costs.
2. ComEd has filed an application to issue $3.4 billion in new
securities backed by a stream of future revenues, which will
drive down our cost of capital by refinancing existing higher
cost debt and equity securities.
3. Under recent SEC guidelines ComEd, in the second quarter
1998, declared certain nuclear assets impaired, wrote down those
assets by $2.6 billion and set up a corresponding regulatory
asset to be amortized over the transition period. A similar
action was taken with respect to $500 million of fossil
generation assets. In addition to the impairment write-down,
current rates of nuclear depreciation less capital improvements
should reduce the nuclear investment base by over $2.5 billion
through the transition period. The result will be book values
that reflect anticipated market values at the end of the
transition period.
Milestones Ahead
1. We expect to reduce operating and maintenance expenses by
$200 million this year compared to last year, including Zion and
NGG workforce reductions and internal savings initiatives (e.g.,
Unicom Competes).
2. We must obtain a funding order from the Illinois Commerce
Commission and successfully issue $3.4 billion in asset-backed
securities prior to year-end 1998.
3. We must achieve earnings per share of $3.00 in 2000 and
maintain a common dividend of $1.60 per share.
4. We must reduce ComEd operating and maintenance expenses by
$200 million and annual capital expenditures by $100 million by
2001. Fuel and purchased power expenses must be reduced by more
than $300 million by 2001 principally as a result of improved
nuclear capacity factors.
Unicom Directions
Page 9
Milestones Ahead (cont'd)
5. We must better align corporate financial performance with
shareholder interests. The shareholder value added (SVA)
performance measurement, which is now being piloted in the fossil
division, will be used in all business units in 1999.
6. We must apply comprehensive benchmarking techniques to
promote continuous improvement throughout the company.
Renewal
Objective 5
We will market a diverse portfolio of products and services to
become the Midwest's leading retail supplier of electricity,
natural gas and energy services.
With the passage of the Illinois Restructuring Act, Unicom's
retail energy business is poised to become the third leg of our
plan, along with ComEd's T&D and nuclear operations. We will
provide our customers with innovative products and services
ranging from energy management to distributed generation and
microturbines. While our focus will be in the Midwest, we may
market certain products and services in other regions of the U.S.
and, potentially, internationally. International markets for
microturbines may be especially attractive. We also will explore
strategic alliances and acquisitions to complement and enhance
our existing business lines.
Milestones Achieved
1. Unicom Energy Services (UES) has formed an alliance with
AlliedSignal to market its microturbine in 12 Midwestern states,
Ontario, Canada and Puerto Rico.
2. UES entered into a joint venture with Sonat Inc. to market
natural gas in Illinois and Michigan as well as other states. We
have customers under contract for a total annualized billing
value of nearly $60 million and are on target with our business
plan, which projects gross margins in the Chicago market of $1
million in the first year.
3. The Unicom Active Energy Management System, which monitors
gas, electric and water usage on a real-time basis, is being
utilized in Hyatt Hotels in Illinois and California. More than
30 Dominick's Finer Food Stores are installing these systems this
summer. Other customers include Ford, Nestle and Kohl's
Department Stores.
Unicom Directions
Page 10
Milestones Achieved (cont'd)
4. The Energy Solutions Group is a performance contracting
business that today is the market share leader in Northern
Illinois. We are doing major work in the governmental sector,
including contracts with the Great Lakes Naval Base, Argonne
National Laboratory and Fermi Laboratory. We expect to be
profitable in this line of business in 1998.
5. We are the principal partner with McDonald's Corporation in
developing the Energy Efficient McDonalds, which will feature the
Unicom Energy Services / AlliedSignal TurboGenerator and the
Unicom Active Energy Management System.
Milestones Ahead
1. We must reach annual sales levels of $500 million dollars
and profit in excess of $50 million over the next three years for
both existing unregulated product lines and new retail ventures.
2. We must obtain a minimum 15% share of the competitive market
for non-tariffed electricity and gas in the Midwest over the next
5 to 7 years.
3. We must become the provider of choice in the emerging
competitive market by offering a customer focused range of
products, services and price options and improving our approach
to service through enhanced database and real time information to
be provided by the Customer Information Management System (CIMS).
4. We must restructure our commercial operations into three
customer units: residential, mid-market, and large industrial and
commercial. This structure will enable us to focus on customer
needs and profitability.
5. We must reposition Unicom Thermal (UT Holdings) as a part of
Unicom Energy Services' product portfolio. We will streamline
the infrastructure, drive down overhead and selectively pursue
only those projects that have competitive returns.
6. We must provide state-of-the-art customer-based distributed
generation which encompasses industrial co-generation and
microturbines.
Unicom Directions
Page 11
Objective 6
We will transform the culture of the Unicom Companies to achieve
higher performance, increased accountability, superior customer
focus and greater diversity.
The corporate culture of today's Unicom is dominated by the
ComEd heritage -- a tightly regulated, technically proficient,
honest and hard-working lineage. Among the many virtues of this
culture is an exceptional ability to rise to meet a crisis.
However, the combination of regulated operations and
entrepreneurial activity springing from the Illinois
Restructuring Act will require a higher level of performance,
more innovation, increased customer focus and new ways of working
with and rewarding our people. The evolving marketplace will
require adaptability and a willingness to adjust to multiple
demands, shifting priorities and rapid change. We also may see
different cultures evolving among the ComEd nuclear organization,
the regulated ComEd T&D organization and the newer more
entrepreneurial activities of other Unicom subsidiaries.
Beyond this, we operate in one of the most diverse and
dynamic regions of the United States. We have the opportunity to
develop a workforce that represents, at all levels, the talents
of the many groups that make up our society and our customer
base. Dealing with all of the opportunities and challenges that
face us requires new approaches and perspectives that are best
obtained by having a diverse work group.
Milestones Achieved
1. We created a smaller and more functional executive
management team.
2. The Nuclear Generation Group is already demonstrating
improved performance and accountability.
3. We have enhanced the link to shareholder value with non-
qualified stock option programs.
4. In August 1998, we will deliver a 15 percent rate reduction
for residential customers in accordance with the Illinois
Restructuring Act.
5. There is more focus on measurable, quantifiable "line of
sight" targets in the annual incentive program.
6. Our TeamFest and Unicom Competes initiatives have
established a platform for continuous improvement through
teamwork, operating efficiencies and cost reduction targets.
Unicom Directions
Page 12
Milestones Ahead
1. We must combine our continuous improvement, teamwork and
benchmarking initiatives and align rewards with performance goals
for individuals, business units and the Company.
2. We must increase equity holdings of corporate officers and
other executives through formal stock ownership guidelines
effective January 1999.
3. We must establish clear goals and management incentives to
recruit and retain qualified minority and female representation
at senior levels and throughout the Company, making diversity one
of Unicom's corporate values.
4. We must aggressively develop ways to secure the involvement
of all employees including Local 15 in transforming the culture
and finding new and creative ways to help Unicom compete and
grow.
5. We must build credibility by honoring commitments internally
and externally and developing an exemplary record of compliance
with the open access, code of conduct, reliability and affiliate
transaction rules established by the FERC and the Illinois
Commerce Commission.
6. We must experiment with new methods of reducing the
environmental burdens of the electricity business, particularly
those that enhance the efficient use of electricity.
7. We must provide development opportunities for employees to
acquire the tools they will need in the new environment and
ensure an ongoing, open two-way communication with shareholders,
customers, and employees.
# # #
PLEASE NOTE: Except for historical information, the information
in this document constitutes forward-looking statements. Forward-
looking statements are inherently uncertain and subject to risks
and should be viewed with caution. Actual results or experience
could differ materially from the forward-looking statements as a
result of many factors. Please refer to the Company's Periodic
Report on Form 8-K filed July 6, 1998 for a discussion of factors
that could affect the actual results or experience.
