UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 6, 1997
POTOMAC ELECTRIC POWER COMPANY
(Exact name of registrant as specified in its charter)
District of Columbia and Virginia 1-1072 53-0127880
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)
1900 Pennsylvania Avenue, N. W., Washington, D. C. 20068
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (202) 872-3526
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
PEPCO
Form 8-K
Item 5. Other Events.
Exhibit 99 attached hereto is hereby incorporated by
reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description of Exhibit Reference
99 News Release of Potomac
Electric Power Company,
Potomac Capital Investment
Corporation and RCN
Corporation dated
August 6, 1997................Filed herewith.
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.
Potomac Electric Power Company
(Registrant)
By /s/ A. J. KAMERICK
Anthony J. Kamerick
Vice President and Treasurer
August 6, 1997
DATE
-2-
<PAGE>
[PEPCO/RCN logo here] For Immediate Release
August 6, 1997
Contacts:
Nancy Moses, PEPCO/PCI
202-872-2680
Jim Maiella, RCN
212-376-4399
PEPCO Subsidiary Joins RCN Corporation to Bring Washington Area
A Single-Source Package of Telecommunications and Cable Services
- - News Conference Aug 6. 10:30 am Sheraton Washington; Connecticut
& Woodley (Kansas Room).
- - To participate in the news conference by telephone, call
1-800-263-9155
- - Replay of the news conference until August 8, 1997:
1-800-633-8284 (PIN# 3009364).
Washington, DC -- Potomac Capital Investment Corporation (PCI),
an unregulated subsidiary of local utility Potomac Electric Power
Company (PEPCO), today announced an agreement to form a joint
venture with RCN Corporation (RCN) to provide Washington-area
residents and businesses local and long-distance telephone, cable
television and Internet services as a package from a single source.
The joint venture will be equally owned by PCI and RCN, and
each will invest up to $150 million over the next three years to
provide the "bundled" services over an advanced fiber optic
network. Initial network construction will begin in the District
of Columbia and portions of Maryland and Northern Virginia. Within
three years, the new company will be offering to more than 40 major
communities the bundled services that include the first full-
service alternative to current cable television providers. In
advance of the buildout of the fiber optic network, a competitive
package of local and long distance telephone and Internet services
will be offered throughout the Washington area. The joint
venture, which will be headquartered in the District of Columbia
and will have more than 200 employees, could ultimately expand to
more than 200 communities.
PEPCO President John M. Derrick, Jr., said, "Through this
venture, PEPCO is responding to the desires of our technology-savvy
customers who want many communication options yet simplicity of
service. By becoming an integrated provider of energy and
telecommunications services in the Washington metropolitan area,
PEPCO will be better able to successfully compete in a deregulated
environment."
-more-
<PAGE>
PCI/RCN 2-2-2
"We had always planned to launch RCN in Washington," said David
C. McCourt, Chairman and CEO of RCN Corporation. "But the
overwhelming demand for our bundled telecommunications services in
New York City and Boston encouraged us to enter this market earlier
than we had originally anticipated. Washington is a fantastic
market for this joint venture because the population craves
information and access to the type of services it will provide."
RCN is the nation's first and largest facilities-based
telecommunications company to offer a package of competitive local
and long-distance telephone, cable television and high-speed
Internet access to residential and commercial customers over
advanced fiber optic networks. RCN currently provides bundled
telecommunications services in New York City and, in concert with
Boston Edison, in the Boston metropolitan area.
PCI President John D. McCallum said, "The recent
Telecommunications Act has given us the opportunity, and
competition has given us the impetus, to offer area customers a
superior, price-competitive, integrated telecommunications service.
We are very pleased to have found a partner with the depth of
telecommunications experience, reputation and strength of RCN."
"When we decided to enter the Washington market, we evaluated
a list of potential local partners and PCI and its parent, PEPCO,
were head and shoulders above the other candidates. We are
thrilled to be in business with a company that has such deep roots
in the community and such a demonstrated commitment to quality
service and customer care," McCourt said.
PCI is a wholly owned subsidiary of PEPCO (NYSE: POM). PEPCO
provides electric service to 682,000 businesses and households in
the Washington, D.C. and the Maryland suburbs. PCI conducts
PEPCO's ongoing nonutility businesses and has been operated
separately from the regulated utility since its inception in 1983.
RCN is a subsidiary of C-TEC Corporation (Nasdaq: CTEX, CTEXB)
headquartered in Princeton, NJ. C-TEC has received approval from
the Internal Revenue Service to spin RCN off into its own separate,
publicly traded company by the end of 1997. It is anticipated that
RCN will trade on The Nasdaq Stock Market.
Consumers can reach PCI by calling 202-775-4623 and RCN by
calling 1-800-RINGRCN. Information can also be obtained by
visiting RCN's site on the World Wide Web at www.rcn.com.
# # #
<PAGE>
