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: January 9, 1998
PECO ENERGY COMPANY
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 1-1401 23-0970240
(State or other (SEC file number) (IRS Employer
jurisdiction of 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
As previously reported, the Company has been involved in a restructuring
proceeding, which began April 1, 1997, pursuant to the Pennsylvania Electricity
Generation Customer Choice and Competition Act.
On December 23, 1997, the Pennsylvania Public Utility Commission (PUC) entered
an Opinion and Order in the proceeding. On January 7, 1998, the Company filed
with the PUC a Petition for Rehearing, Reconsideration, Clarification and
Amendment of the Opinion and Order. The petition identifies eight errors in the
PUC's quantification of stranded costs which understated the level of these
costs by $629 million and one error which overstated stranded costs by $471
million (net impact of errors is $158 million). It also requests clarification
of the PUC's discussion of the Company's consumer education program and requests
a stay for several months of the requirement that the open enrollment period
begin March 1, 1998. Although the petition identifies certain specific errors in
the December 23, 1997 Order, it does not address the Company's fundamental
concerns with the Order. As a result, and consistent with its intent to
vigorously oppose the implementation of the Order, the Company is evaluating its
options with respect to appeals and other legal challenges.
The Company is continuing to evaluate the financial impact of the Order,
including the impact on the Company's accounting and whether the Company will
incur a significant charge against earnings as a result of the Order. The impact
of competition on the Company's financial condition will depend on many factors,
including, among other things, future energy prices and fuel costs and the
Company's ability to compete for wholesale and retail generation customers.
Based on its preliminary analysis, the Company believes that the December 23,
1997 Order, if implemented, could jeopardize the Company's ability to earn the
current dividend and could threaten the Company's credit ratings.
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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. Barry Mitchell
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Vice President, Finance
and Treasurer
January 9, 1998
