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: October 15, 1998
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
As previously reported in the Company's Current Report on Form 8-K dated July
17, 1998, AmerGen Energy Company, LLC (AmerGen), the joint venture between the
Company and British Energy Company, entered into a Letter of Intent to purchase
Unit No. 1 at the Three Mile Island Nuclear Generating Station (TMI-1),
currently owned by GPU Inc.'s electric utility subsidiaries - Jersey Central
Power & Light Company, Metropolitan Edison Company and Pennsylvania Electric
Company (GPU), and operated by GPU Nuclear, Inc., another GPU, Inc. subsidiary.
On October 15, 1998, AmerGen and GPU signed a definitive asset purchase
agreement to purchase TMI-1.
Agencies which must approve the sale include the Nuclear Regulatory Commission,
the Federal Energy Regulatory Commission, the Securities and Exchange
Commission, the Pennsylvania Public Utility Commission and the New Jersey Board
of Public Utilities. Target date for final regulatory approvals is mid-year
1999.
Until the sale is completed, GPU and GPU Nuclear, Inc. will continue to be fully
responsible for the ownership and operation of TMI-1. The sale does not include
the shut down TMI Unit No. 2, which will continue to be owned by GPU.
The definitive agreement affirms the sale price of $100 million - $23 million
for the reactor and $77 million, payable over five years, for the plant's
nuclear fuel. The ultimate sale price will be partly determined by possible
additional payments depending on the actual energy market clearing prices
through 2010. AmerGen will assume full responsibility for the decommissioning of
TMI-1, which will be pre-funded by GPU.
The agreement includes a power purchase agreement in which GPU will purchase the
energy and capacity from TMI-1 from closing through December 31, 2001.
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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
October 19, 1998
