FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report: April 14, 1997
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
The Pennsylvania Public Utility Commission's (PUC) Administrative Law
Judge (ALJ) assigned to the Company's Asset Securitization proceeding today
issued his recommended decision in the case.
The ALJ recommended that the Company not be authorized to issue
transition bonds at this time, due to the insufficient time available for the
PUC to evaluate the proposal. The ALJ asserts that the time limit, included in
the Pennsylvania Electricity Generation Customer Choice and Competition Act
(Competition Act) passed in December 1996, is so constraining that it is
"fundamentally unfair" to customers. The Competition Act provides the PUC with
120 days to consider the filing and issue a final decision.
The ALJ has made an alternative recommendation - authorization to issue
$328 million of transition bonds - which provides for the event the PUC does not
agree with the legal concepts that form the basis of the ALJ's primary
recommendation.
The table below outlines the items included in the alternative
recommendation:
(000)
Carrying Charges on 50% of Limerick Common $120,512
Unamortized loss on Reacquired Debt 123,186
Carrying Charges on 50% of Common (Salem/PB/Eddystone) 11,927
Deferred Fuel 65,915
Transition Costs 6,538
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$328,078
The ALJ also recommended that the record in this proceeding be incorporated into
the record of the restructuring proceeding.
The recommended decision pertains to the Asset Securitization case only. The PUC
must issue its final decision in this proceeding by May 22, 1997.
The determination of the appropriate amount of stranded costs to be recovered
will be addressed in the Company's restructuring proceeding which was filed with
the PUC on April 1, 1997.
* * *
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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
April 14, 1997
