SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM U5S
ANNUAL REPORT
For the year ended December 31, 1995
Filed pursuant to the Public Utility Holding
Company Act of 1935
By
PECO ENERGY POWER COMPANY
2301 Market Street, Philadelphia, Pennsylvania 19103
<PAGE>
- 2 -
ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF DECEMBER 31,
1995
<TABLE>
<CAPTION>
% of Issuer Owner's
Number of Common Voting Book Book
Name of Company Shares Owned Power Value Value
<S> <C> <C> <C> <C>
PECO Energy Power Company
(PEPCO) (the registrant
and owner) (1)
Susquehanna Power Company
(SPCO) (the issuer) 1,273,000 100% $58.31 $58.31
The Proprietors of the
Susquehanna Canal (2*)
(1) $74,226,114 investment in Susquehanna Power Company
(2) This Company was acquired in connection with the development of the
Conowingo Hydroelectric Project. It is an inactive company, owning
no properties and conducting no business activities of any nature.
The total investment therein is reflected on the books of
Susquehanna Power Company at $1.
</TABLE>
ITEM 2. ACQUISITIONS OR SALES OF UTILITY ASSETS
None
ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM
SECURITIES
None
ITEM 4. ACQUISITION, REDEMPTION OR RETIREMENT OF SYSTEM SECURITIES
The Company was required to make annual sinking fund payments (cash
and/or debentures), to the trustee for the 4-1/2% Sinking Fund
Debentures due 1995.
Sinking fund requirements in 1995 were: $9,750,000.
On March 1, 1995, the Company's $9,750,000 of 4-1/2% Sinking Fund
Debentures matured and were paid.
ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES
None
<PAGE>
- 3 -
ITEM 6. OFFICERS AND DIRECTORS
PART I. AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
Name of System
Companies with
Which Connected
---------------------------
PEPCO SPCO
<S> <C> <C> <C>
C. A. McNeill, Jr. 2301 Market St., Philadelphia, PA 19103 Pres. - Director Pres. - Director
K .G. Lawrence 2301 Market St., Philadelphia, PA 19103 VP - Director VP - Director
J. M. Madara, Jr. 2301 Market St., Philadelphia, PA 19103 VP - Director VP - Director
J. B. Mitchell 2301 Market St., Philadelphia, PA 19103 Treasurer Treasurer
K. K. Combs 2301 Market St., Philadelphia, PA 19103 Secretary Secretary
E. J. Cullen, Jr. 2301 Market St., Philadelphia, PA 19103 Assist. Sec. Assist. Sec.
D. M. Kelly 2301 Market St., Philadelphia, PA 19103 Assist. Treas. Assist. Treas.
G. S. Shicora 2301 Market St., Philadelphia, PA 19103 Assist. Treas. Assist. Treas.
J. W. Durham 2301 Market St., Philadelphia, PA 19103 Director Director
J. F. Paquette, Jr. 2301 Market St., Philadelphia, PA 19103 Director Director
</TABLE>
PART II.
<TABLE>
<CAPTION>
Position Held Applicable
Name of Officer Name and Location of in Financial Exemption
or Director Financial Institution Institution Rule
--------------- --------------------- ------------- ----------
<S> <C> <C> <C>
J. F. Paquette, Jr. Meridian Bancorp, Inc. Director 70(e),(f)
Philadelphia, PA
Meridian Bank Director 70(e),(f)
Philadelphia, PA
</TABLE>
<PAGE>
- 4 -
PART III.
(a) COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS OF SYSTEM
COMPANIES
None
(b) STOCK OPTIONS OR OTHER RIGHTS TO ACQUIRE SECURITIES
None
(c) CONTRACTS AND TRANSACTIONS
None
(d) INDEBTEDNESS
None
(e) BONUS AND PROFIT SHARING ARRANGEMENTS
None
(f) INDEMNIFICATION
None
ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS
None
ITEM 8. SERVICE, SALES, AND CONSTRUCTION CONTRACTS
Part I: None
Part II: None
Part III: None
ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES
Part I: None
Part II: None
Part III: None
<PAGE>
- 5 -
ITEM 10. FINANCIAL STATEMENTS AND EXHIBITS
(a) Index to Financial Statements and Schedules:
PAGE
----
6 Report of Independent Accountants
7 Consolidating Statement of Income for the year ended December
31, 1995
8 - 9 Consolidating Balance Sheet as of December 31, 1995
10 Consolidating Statement of Cash Flows for the year ended
December 31, 1995
11 Consolidating Statement of Changes in Shareholder's Equity
for the year ended December 31, 1995
12-16 Notes to Consolidating Financial Statements
Ex. 27 Financial Data Schedule as of December 31, 1995
(b) Index to Exhibits
Exhibit A
None
Exhibit B
1. PECO Energy Power Company's Certificate of Organization and
Charter, By-laws amended as of December 23, 1993, and
amendment to Articles of Incorporation filed February 8,
1994, are incorporated herein by reference (1991 Form U5S and
1993 Form 10-K, File No.1-1392).
2. Susquehanna Power Company's Certificate of Organization is
incorporated herein by reference (1991 Form U5S, File No. 1-
1392); By-laws amended December 23, 1993, and Charter
amendment filed February 8, 1994 are incorporated herein by
reference (1993 Form U5S, File No. 1-1392).
Exhibit C
None
Exhibit D
None
Exhibit E
None
Exhibit F
None
Exhibit G
See Item 10(a), Index to Financial Statements and Schedules.
Exhibit H
None
Exhibit I
None
- 6 -
COOPERS Coopers & Lybrand L.L.P.
& LYBRAND a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors
PECO Energy Power Company
Philadelphia, Pennsylvania
We have audited the consolidating and individual financial statements
and the financial statement schedule of PECO Energy Power Company
(subsidiary of PECO Energy Company) and subsidiary company listed in
Item 10 of this Form U5S. These financial statements and the financial
statement schedule are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial
statements and financial statement schedule based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the consolidating and individual
financial positions of PECO Energy Power Company and subsidiary company
as of December 31, 1995, and the consolidated and individual results of
their operations and their cash flows for the year ended December 31,
1995, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND, L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 2, 1996
<PAGE>
<TABLE>
<CAPTION>
- 7 -
PECO ENERGY POWER COMPANY & SUBSIDIARY COMPANY
CONSOLIDATING STATEMENT OF INCOME
For the Year Ended December 31, 1995
PECO
Energy Susquehanna
Power Power
Company Company Eliminations Consolidated
-------- ----------- ------------ ----------
<S> <C> <C> <C> <C>
Rentals from Utility Plant Leased to Others
Affiliates $657,609 $14,192,287 --- $14,849,896
Others 255,897 --- --- 255,897
---------- ------------ ------------ ------------
Total Rentals from Utility Plant
Leased to Others 913,506 14,192,287 --- 15,105,793
---------- ------------ ------------ ------------
Expenses of Utility Plant Leased to Others
General 50,000 54,349 --- 104,349
Depreciation and Amortization 45,294 1,593,732 --- 1,639,026
Income Taxes 217,581 3,508,478 --- 3,726,059
Other Taxes 128,610 2,382,966 --- 2,511,576
---------- ------------ ------------ ------------
Total Expenses of Utility Plant Leased to Others 441,485 7,539,525 --- 7,981,010
---------- ------------ ------------ ------------
Income from Leased Utility Plant 472,021 6,652,762 --- 7,124,783
---------- ------------ ------------ ------------
Other Income and Deductions
Allowance for Other Funds Used
During Construction --- 53,808 --- 53,808
Income Taxes (3,028) (65,339) --- (68,367)
Other, Net 7,186 81,940 --- 89,126
Equity in Net Income of Subsidiary 6,769,629 --- (6,769,629) ---
---------- ------------ ------------ ------------
Total Other Income and Deductions 6,773,787 70,409 (6,769,629) 74,567
---------- ------------ ------------ ------------
Income Before Interest Charges 7,245,808 6,723,171 (6,769,629) 7,199,350
---------- ------------ ------------ ------------
Net Interest Charges
Interest on Debt 4,727 --- --- 4,727
Allowance for Borrowed Funds Used
During Construction --- (47,695) --- (47,695)
Other 7,668 1,237 --- 8,905
---------- ------------ ------------ ------------
Net Interest Charges 12,395 (46,458) --- (34,063)
---------- ------------ ------------ ------------
Net Income $7,233,413 $6,769,629 ($6,769,629) $7,233,413
========== ============ ============ ============
See Notes to Consolidating Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- 8 -
PECO ENERGY POWER COMPANY & SUBSIDIARY COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1995
(ASSETS)
PECO
Energy Susquehanna
Power Power
Company Company Eliminations Consolidated
-------- ------------ ------------ ----------
ASSETS
<S> <C> <C> <C>
<C>
Utility Plant - at original cost $6,103,452 $121,348,962 --- $127,452,414
Less Accumulated Provision for Depreciation
and Amortization 598,775 37,932,463 --- 38,531,238
------------- -------------- -------------- -------------
5,504,677 83,416,499 --- 88,921,176
------------- -------------- -------------- -------------
Construction Work in Progress --- 3,447,933 --- 3,447,933
------------- -------------- -------------- -------------
5,504,677 86,864,432 --- 92,369,109
------------- -------------- -------------- -------------
Investments
Investment in Subsidiary Company 74,226,114 --- ($74,226,114) ---
Nonutility Property, Net 384,727 1,000,132 --- 1,384,859
------------- -------------- -------------- -------------
74,610,841 1,000,132 (74,226,114) 1,384,859
------------- -------------- -------------- -------------
Current Assets
Cash and Temporary Cash Investments 68,143 773,443 --- 841,586
Accounts Receivable, Affiliates 8,497,856 1,348,421 (8,401,800) 1,444,477
Accounts Receivable, Other 67,749 (4,180) --- 63,569
Prepayments 30,168 2,622,348 --- 2,652,516
------------- -------------- -------------- -------------
8,663,916 4,740,032 (8,401,800) 5,002,148
------------- -------------- -------------- -------------
Deferred Debits
Recoverable Deferred Income Taxes 100,465 15,917,068 --- 16,017,533
Deferred Debits (200) 28,328 --- 28,128
------------- -------------- -------------- -------------
100,265 15,945,396 --- 16,045,661
------------- -------------- -------------- -------------
Total Assets $88,879,699 $108,549,992 ($82,627,914) $114,801,777
============= ============== ============== =============
See Notes to Consolidating Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- 9 -
PECO ENERGY POWER COMPANY & SUBSIDIARY COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1995
(CAPITALIZATION & LIABILITIES)
PECO
Energy Susquehanna
Power Power
Company Company Eliminations Consolidated
-------- ------------ ------------ ------------
CAPITALIZATION & LIABILITIES
<S> <C> <C> <C>
<C>
Capitalization
Common Shareholder's Equity
Common Stock ($25 par)
Authorized 1,500,000 Shares, $24,600,000 --- --- $24,600,000
Outstanding 984,000 Shares
Common Stock (without par value) --- $47,047,450 ($47,047,450) ---
Authorized 1,500,000 Shares,
Outstanding 1,273,000 Shares
Other Paid-In Capital 48,740,078 22,215,078 (22,215,078) 48,740,078
Retained Earnings 5,798,855 4,963,586 (4,963,586) 5,798,855
------------- -------------- -------------- --------------
79,138,933 74,226,114 (74,226,114) 79,138,933
------------- -------------- -------------- --------------
Current Liabilities
Notes Payable --- --- --- ---
Long-Term Debt due Within One Year --- --- --- ---
Accounts Payable, Affiliates 9,028,258 12,402,032 (8,401,800) 13,028,490
Accounts Payable, Other 15,240 (43,817) --- (28,577)
Taxes Accrued 347,383 1,290,287 --- 1,637,670
Interest Accrued (5,231) (5,303) --- (10,534)
------------- -------------- -------------- --------------
9,385,650 13,643,199 (8,401,800) 14,627,049
------------- -------------- -------------- --------------
Deferred Credits
Unamortized Gain on Reacquired Debt --- --- --- ---
Unamortized Investment Tax Credits --- 949,633 --- 949,633
Deferred Income Taxes 355,116 19,731,046 --- 20,086,162
------------- -------------- -------------- --------------
355,116 20,680,679 --- 21,035,795
------------- -------------- -------------- --------------
Total Capitalization & Liabilities $88,879,699 $108,549,992 ($82,627,914) $114,801,777
============= ============== ============== =============
See Notes to Consolidating Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- 10 -
PECO ENERGY POWER COMPANY & SUBSIDIARY COMPANY
CONSOLIDATING STATEMENT OF CASH FLOWS
For the Year Ended December 31, 1995
PECO
Energy Susquehanna
Power Power
Company Company Eliminations Consolidated
-------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Cash Flows from Operating Activities
Net Income $7,233,413 $6,769,629 ($6,769,629) $7,233,413
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation and Amortization 45,294 1,593,732 --- 1,639,026
Deferred Income Taxes 201,370 4,367,819 --- 4,569,189
Investment Tax Credits, Net --- (13,730) --- (13,730)
(Increase)/Decrease in Receivables (8,850,500) 829,317 --- (8,021,183)
Increase in Payables and
Accrued Expenses 8,488,570 10,821,124 --- 19,309,694
Recoverable Deferred Income Taxes 18,775 (6,383,597) --- (6,364,822)
Other, Net (69,116) (1,235,314) --- (1,304,430)
---------- ------------ ------------ ------------
Net Cash Flows Provided by Operating Activities 7,067,806 16,748,980 (6,769,629) 17,047,157
---------- ------------ ------------ ------------
Cash Flows from Investing Activities
Investment in Utility Plant --- (5,994,739) --- (5,994,739)
Nonutility Plant --- 8,359 --- 8,359
Net Investment in Subsidiary Company 1,617,093 --- (1,617,093) -- -
---------- ------------ ------------ ------------
Net Cash Flows Used by Investing Activities 1,617,093 (5,986,380) (1,617,093) (5,986,380)
---------- ------------ ------------ ------------
Cash Flows from Financing Activities
Capital Contribution from Parent Company 12,240,078 15,078 (15,078) 12,240,078
Repayment of Long-Term Debt (9,750,000) --- --- (9,750,000)
Change in Short-Term Debt (2,350,000) (1,649,344) --- (3,999,344)
Other, Net 4,366 --- --- 4,366
Dividends on Common Stock (8,905,201) (8,401,800) 8,401,800 (8,905,201)
---------- ------------ ------------ ------------
Net Cash Flows Used by Financing Activities (8,760,757) (10,036,066) 8,386,722 (10,410,101)
---------- ------------ ------------ ------------
Decrease in Cash and Cash Equivalents (75,858) 726,534 --- 650,676
---------- ------------ ------------ ------------
Cash & Cash Equivalents at beginning of period 144,001 46,909 --- 190,910
---------- ------------ ------------ ------------
Cash & Cash Equivalents at end of period $68,143 $773,443 --- $841,586
========== ============ ============ ============
See Notes to Consolidating Financial Statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- 11 -
PECO ENERGY POWER COMPANY & SUBSIDIARY COMPANY
CONSOLIDATING STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
For the Year Ended December 31, 1995
Capital
Contributions
From
Balance Net Parent Balance
1/1/95 Dividends Income Company 12/31/95
---------- ---------- ---------- -------------- --------
<S> <C> <C> <C> <C> <C>
PECO Energy Power Company
Common Stock $24,600,000 --- --- --- $24,600,000
Other Paid-In Capital 36,500,000 --- --- 12,240,078 48,740,078
Retained Earnings 7,470,643 (8,905,201)* 7,233,413 --- 5,798,855
Susquehanna Power Company
Common Stock 47,047,450 --- --- --- 47,047,450
Other Paid-In Capital 22,200,000 --- --- 15,078 22,215,078
Retained Earnings 6,595,757 (8,401,800)** 6,769,629 --- 4,963,586
Eliminations
Common Stock (47,047,450) --- --- --- (47,047,450)
Other Paid-In Capital (22,200,000) --- --- (15,078) (22,215,078)
Retained Earnings (6,595,757) 8,401,800 (6,769,629) --- (4,963,586)
Consolidated
Common Stock 24,600,000 --- --- --- 24,600,000
Other Paid-In Capital 36,500,000 --- --- 12,240,078 48,740,078
Retained Earnings 7,470,643 (8,905,201) 7,233,413 --- 5,798,855
* $9.05 per share
** $6.60 per share
</TABLE>
<PAGE>
- 12 -
NOTES TO CONSOLIDATING FINANCIAL STATEMENTS
1. Significant Accounting Policies:
CONSOLIDATION
The consolidating financial statements include the accounts of
PECO Energy Power Company (Company) and its subsidiary,
Susquehanna Power Company (SPCO). The Company and SPCO
(Companies) are owned by PECO Energy Company (Parent Company),
which together with another subsidiary leases and operates the
utility plant of the Company and SPCO.
The Companies are joint holders of a license from the Federal
Energy Regulatory Commission (FERC) for Project No. 405
(Conowingo Project).
DEPRECIATION AND AMORTIZATION
The annual provision for depreciation is provided over the
estimated service lives of plant on the straight-line method.
The annual provision for financial reporting purposes in 1995,
expressed as a percent of average depreciable plant in service,
was 1.07% for the property of the Company and 1.42% for the
property of SPCO.
Costs for relicensing the Conowingo Hydroelectric Project are
being amortized over 30 years on the straight-line method.
INCOME TAXES
The Companies join with the Parent Company and its other
subsidiaries in filing a consolidated federal income tax return.
The provision for federal income taxes is computed on a separate
return basis after giving consideration to consolidated return
savings.
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION (AFUDC)
AFUDC is the cost, during the period of construction, of debt and
equity funds used to finance construction projects. AFUDC is
recorded as a charge to Construction Work in Progress and the
credits are to Interest Charges for the cost of borrowed funds
and to Other Income and Deductions for the remainder as the
allowance for other funds. The rate used for capitalizing AFUDC,
which averaged 9.88% in 1995, was computed under a method
prescribed by the regulatory authorities on the basis of the
Parent Company's book balances and cost rates, and is utilized by
all of the subsidiaries of the Parent Company, including the
Companies. AFUDC is not included in regular taxable income and
the depreciation of capitalized AFUDC is not tax deductible.
GAINS AND LOSSES ON REACQUIRED DEBT
Gains and losses on reacquired debt are deferred and amortized to
interest expense over the period approved for ratemaking
purposes.
<PAGE>
- 13 -
2. Sinking Fund Requirements:
The Company retired the $9,750,000 of 4-1/2% Sinking Fund Debentures on
March 1, 1995.
3. Income Taxes:
<TABLE>
<CAPTION>
PECO Energy Susquehanna
Power Power
Company Company Consolidated
----------- ----------- -----------
<S> <C> <C> <C>
Current $ (2,563) $5,563,220 $5,560,657
Deferred 220,144 (2,038,470) (1,818,326)
Amortization of Investment
Tax Credits -- (16,272) (16,272)
--------- ----------- -----------
Total 217,581 3,508,478 3,726,059
Included in other income-
current and deferred 3,028 65,339 68,367
--------- ----------- -----------
Total income tax provision $ 220,609 $3,573,817 $3,794,426
========= =========== ===========
</TABLE>
In accordance with Statement of Financial Accounting Standards (SFAS) No.
109, "Accounting for Income Taxes," the Companies have recorded an
accumulated net deferred income tax liability and pursuant to SFAS No.
71, "Accounting for the Effects of Certain Types of Regulation," a
corresponding recoverable deferred income tax asset of $16.0 million at
December 31, 1995.
The $16.0 million accumulated net deferred income tax liability reflects
the tax effect of anticipated revenues and reverses as the related
temporary differences reverse over the life of the related depreciable
assets concurrent with the recovery of their costs in rates. Also
included in the accumulated deferred income tax liability are other
accumulated deferred income taxes, principally associated with
liberalized tax depreciation, established in accordance with the
ratemaking policies of the Pennsylvania Public Utility Commission (PUC)
based on flow-through accounting.
<PAGE>
- 14 -
The tax effect of temporary differences which give rise to the Companies' net
deferred tax liability as of December 31, 1995 are as follows:
<TABLE>
<CAPTION>
Nature of Temporary Difference: Liability or (Asset)
-------------------------------------
PECO Energy Susquehanna
Power Power
Company Company Consolidated
----------- ------------ ------------
<S> <C> <C> <C>
Utility Plant
Accelerated Depreciation $ 261,527 $ 4,048,598 $ 4,310,125
Deferred Investment Tax Credit - 949,633 949,633
Other Plant Related Temporary
Differences 51,393 8,997,279 9,048,672
Taxes Recoverable Through
Future Rates, Net 42,196 6,685,169 6,727,365
---------- ----------- ------------
Deferred Income Taxes per
the Balance Sheet $ 355,116 $20,680,679 $21,035,795
========== =========== ============
</TABLE>
The net deferred tax liability shown above is comprised of $21.2 million of
deferred tax liabilities partly offset by $247,498 of deferred tax assets.
The total provision for income taxes was less than the amount computed by
applying the federal statutory rate of 35% to income before income taxes
for the following reasons:
<TABLE>
<CAPTION>
Percent of Income Before Income Taxes
-------------------------------------
PECO Energy Susquehanna
Power Power
Company Company Consolidated
------------ ----------- ------------
<S> <C> <C> <C>
Federal statutory rate 35% 35% 35%
Reimbursement of income taxes
included in rentals from
utility plant leased to
affiliates (8) (8) (8)
State income tax, net of federal
income tax benefits 4 4 4
Flow through of gain on
reacquired debt (3) - -
Other 1 (1) (1)
---- --- ---
Effective rate 29% 30% 30%
==== === ===
</TABLE>
<PAGE>
- 15 -
4. Taxes, Other Than Income Taxes:
<TABLE>
<CAPTION>
PECO Energy Susquehanna
Power Company Power Company Consolidated
------------- ------------- ------------
<S> <C> <C> <C>
Capital Stock $108,000 $634,800 $742,800
Real Estate 20,467 1,713,996 1,734,463
Gross Receipts - 8,886 8,886
Superfund 143 14,514 14,657
Other - 10,770 10,770
-------- ---------- ----------
$128,610 $2,382,966 $2,511,576
======== ========== ==========
</TABLE>
5. Notes Payable, Banks:
There are no specific requirements for compensating balances in
conjunction with the bank loans. The Parent Company maintains normal
working balances with all lending banks. During 1995, the Parent Company
discontinued its compensating balance agreements for these credit lines.
At December 31, 1995, the Companies had no outstanding loans under formal
and informal lines of credit aggregating approximately $9.5 million.
6. Utility Plant - Leased to Related Parties:
Utility plant consists principally of a hydroelectric generating station
and related transmission facilities and is leased to and operated by
affiliated companies. Rentals are based on an annual return on net
original cost of utility plant plus working capital together with a
reimbursement of operating expenses, taxes and depreciation as reflected
in the Consolidating Statement of Income. The license granted by the
Federal Energy Regulatory Commission for the Conowingo Project expires in
2014. Minimum rental payments due in future years through 2014
aggregated $151.3 million at December 31, 1995, with approximately $8.7
million of rentals, net of expenses, due in each of the next five years.
7. Cash and Cash Equivalents:
For purposes of the Consolidating Statement of Cash Flows, the Companies
consider all highly liquid debt instruments purchased with a maturity of
three months or less to be cash equivalents. The following disclosures
supplement the accompanying Consolidating Statement of Cash Flows:
<TABLE>
<CAPTION>
PECO Energy Susquehanna
Power Company Power Company Consolidated
------------- ------------- ------------
<S> <C> <C> <C>
Cash Paid During the Year:
Interest (net of amount
capitalized) $ 237,659 $ (38,192) $ 199,467
Income taxes (net of refunds) $(111,407) $7,676,677 $7,565,270
</TABLE>
<PAGE>
- - 16 -
8. Adjustment for Billing Effect of Deferred Income Taxes
The Companies have discovered that they did not deduct accumulated
deferred income taxes from their rate bases when calculating the fixed
rental amounts billed to PECO Energy. As a result, PECO Energy was
overbilled by PECO Energy Power Company by $89,277 and by Susquehanna
Power Company by $1,487,424 for a total overbilling of $1,576,701.
These amounts reduced revenues from affiliates for utility plant leased
to others on the Companies income statement for the year ended December
31, 1995, and increased accounts payable to affiliates on the Companies
balance sheet as of December 31, 1995.
<PAGE>
SIGNATURE
The undersigned system company has duly caused this annual report
to be signed on its behalf by the undersigned thereunto duly authorized
pursuant to the requirements of the Public Utility Holding Company Act
of 1935. The signature of the undersigned company shall be deemed to
relate only to matters having reference to such company or its
subsidiary.
PECO ENERGY POWER COMPANY
Date: By:
---------------------------- ---------------------------
J.Barry Mitchell, Treasurer
<PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND> O
<CIK> 0000078103
<NAME> PECO ENERGY POWER COMPANY
<SUBSIDIARY>
<NUMBER> 1
<NAME> SUSQUEHANNA POWER COMPANY
<CURRENCY> DOLLAR
<FISCAL-YEAR-END> 12/95
<S> <C>
<PERIOD-TYPE> 12-MOS
<PERIOD-END> DEC-31-1995
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 92369
<OTHER-PROPERTY-AND-INVEST> 1385
<TOTAL-CURRENT-ASSETS> 5002
<TOTAL-DEFERRED-CHARGES> 16046
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 114802
<COMMON> 24600
<CAPITAL-SURPLUS-PAID-IN> 48740
<RETAINED-EARNINGS> 5799
<TOTAL-COMMON-STOCKHOLDERS-EQ> 79139
0
0
<LONG-TERM-DEBT-NET> 0
<SHORT-TERM-NOTES> 0
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0
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0
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</TABLE>
