UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
July 1, 1999
(Date of earliest
event reported)
PECO ENERGY COMPANY
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 1-1401 23-0970240
(State or other (Commission (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
<PAGE>
Item 5. Other Events
As previously reported in the Company's Current Report on Form 8-K dated April
15, 1999, AmerGen Energy Company, LLC (AmerGen), the joint venture between the
Company and British Energy, entered into an interim agreement to purchase the
Clinton Nuclear Power Station (Clinton) from Illinois Power (IP), a subsidiary
of Illinova Corporation. On June 30, 1999, AmerGen and IP signed a definitive
asset purchase agreement to purchase Clinton.
The basic terms of the definitive asset purchase agreement are not materially
different from the terms established in the March 31, 1999 interim agreement.
According to the definitive asset purchase agreement, and following receipt of
all necessary regulatory approvals, at closing, AmerGen will pay IP $20.0
million for Clinton including all fuel in the reactor at closing. AmerGen will
assume full responsibility and liability for operating and ultimately
decommissioning the nuclear station. Closing is anticipated by year-end 1999.
Illinois Power will transfer to AmerGen the existing decommissioning trust
funds, expected to total approximately $95 million at the end of 1999. Illinois
Power also will make additional payments to the decommissioning trust funds
intended to be sufficient to provide for the actual decommissioning of Clinton
at the end of its licensed life.
AmerGen and IP will enter into a Power Purchase Agreement (PPA) providing for
IP's purchase of 75% of the energy produced at Clinton from closing through
December 31, 2004. AmerGen expects to sell the energy produced by Clinton in the
wholesale market beyond 2004.
<PAGE>
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\ Jean H. Gibson
---------------------------
Vice President & Controller
July 1, 1999
