FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report: December 19, 1996
PECO ENERGY COMPANY
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 1-1401 23-0970240
(State or other (SEC (IRS Employer
jurisdiction of file number) Identification
incorporation) Number)
230l Market Street, Philadelphia, Pennsylvania 19101
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(215) 841-4000
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Item 5. Other Events
In an Order issued December 19, 1996, the Pennsylvania Public Utility
Commission (PUC) approved, with minor modifications, a Company proposal to
eliminate the Energy Cost Adjustment (ECA)--the current billing surcharge
mechanism used to recover the Company's energy costs--and instead, roll these
costs into the base rates charged to the Company's customers, effective December
31, 1996. The Company's proposal was prompted by the recently enacted
Electricity Generation Customer Choice and Competition Act (Competition Act)
which provides that as of January 1, 1997, electric rates in Pennsylvania will
be capped at their current levels for a period of up to nine years.
In addition, the PUC recognized the Company's right to defer and, in
the future, seek recovery of a) an estimated $102 million attributable to its
anticipated undercollection of $80 million in energy costs through 1996 and the
$22 million 1996 nuclear performance bonus, and b) approximately $198 million of
future energy costs that would not have otherwise been recoverable. Subject to
the rate cap limitations imposed by the Competition Act, the Order provides that
these additional amounts may be recovered either through the stranded cost
recovery mechanisms provided in the Competition Act or an automatic adjustment
clause provided in the Public Utility Code.
As noted by the PUC in a press release announcing its Order, under
traditional regulation, as of December 31, 1996, the Company would have been
entitled to an increase of $125 million in its ECA.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PECO ENERGY COMPANY
\s\ J. B. Mitchell
Vice President - Finance
and Treasurer
December 20, 1996
