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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTIONS 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): June 15, 2000
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Commission Registrant, State of Incorporation I.R.S. Employer
File Number Address and Telephone Number Identification Number
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1-13895 Conectiv (a Delaware Corporation) 51-0377417
800 King Street
P.O. Box 231
Wilmington, Delaware 19899
Telephone (302) 429-3114
1-1405 Delmarva Power & Light Company 51-0084283
(a Delaware and Virginia Corporation)
800 King Street
P.O. Box 231
Wilmington, Delaware 19899
Telephone (302) 429-3114
1-3559 Atlantic City Electric Company 21-0398280
(a New Jersey Corporation)
800 King Street
P.O. Box 231
Wilmington, Delaware 19899
Telephone (302) 429-3114
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Item 5. Other Events
DEREGULATED GENERATION AND POWER PLANT SALES
As previously disclosed, Conectiv is changing the mix of the types of electric
generating plants it owns in conjunction with implementing its asset-backed,
"merchant" strategy focusing on "mid-merit" electric generating plants.
Mid-merit electric generating plants can quickly increase or decrease their kWh
output level on an economic basis. Mid-merit plants typically have relatively
low fixed operating and maintenance costs and also can use different types of
fuel. These plants are generally operated during times when demand for
electricity rises and prices are higher. DPL and ACE have entered into
agreements to sell their nuclear and non-strategic baseload fossil electric
generating plants. Baseload electric generating plants run almost continuously
to supply the base level of demand for electricity, or the minimum demand level
that generally always exists on an electrical system. In a deregulated
electricity supply market, management expects that mid-merit electric generating
plants will be more profitable and provide higher returns on invested capital
than baseload electric generating plants.
Conectiv is constructing new mid-merit generating units seeking to establish a
leading position in the mid-merit generation market for the region served by the
PJM. Conectiv is currently constructing a new mid-merit, electric power plant in
northern Delaware comprised of three combustion turbines, waste heat recovery
boilers and a steam turbine (combined cycle unit). Assuming all permits and
licenses are obtained, the new mid-merit power plant will be installed on the
site which currently includes the Hay Road combined cycle unit and the Edge Moor
power plant. The new mid-merit power plant is expected to cost approximately
$300 million and have a capacity of approximately 550 MW. The three new
combustion turbine units are expected to be installed by the third quarter of
2001 and the waste heat recovery boiler and steam turbine is expected to be
installed by the third quarter of 2002. In addition, Conectiv is beginning
construction of another 550 MW combined cycle unit ($300 million estimated cost)
which is expected to be phased into service over a twelve month period starting
in early-to-mid-2002.
In connection with the Company's strategic plan to further grow its mid-merit
generating business, on June 9, 2000, Conectiv's Board of Directors authorized
the expenditure of up to an additional $45 million to preserve the option to
purchase up to fifteen additional combustion turbine units and for expenses
associated with power plant site development and procurement.
FORWARD-LOOKING STATEMENTS
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 (THE "LITIGATION REFORM
ACT") PROVIDES A "SAFE HARBOR" FOR FORWARD-LOOKING STATEMENTS TO ENCOURAGE SUCH
DISCLOSURES WITHOUT THE THREAT OF LITIGATION, PROVIDED THOSE STATEMENTS ARE
IDENTIFIED AS FORWARD-LOOKING AND ARE ACCOMPANIED BY MEANINGFUL, CAUTIONARY
STATEMENTS IDENTIFYING IMPORTANT FACTORS THAT COULD CAUSE THE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE PROJECTED IN THE STATEMENT. FORWARD-LOOKING
STATEMENTS HAVE BEEN MADE IN THIS PRESS RELEASE. SUCH STATEMENTS ARE BASED ON
BELIEFS OF THE COMPANY'S MANAGEMENT ("MANAGEMENT") AS WELL AS ASSUMPTIONS MADE
BY AND INFORMATION CURRENTLY AVAILABLE TO MANAGEMENT. WHEN USED HEREIN, THE
WORDS "WILL," "ANTICIPATE," "ESTIMATE," "EXPECT,"
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"OBJECTIVE," AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING
STATEMENTS. IN ADDITION TO ANY ASSUMPTIONS AND OTHER FACTORS REFERRED TO
SPECIFICALLY IN CONNECTION WITH SUCH FORWARD-LOOKING STATEMENTS, FACTORS THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED IN ANY
FORWARD-LOOKING STATEMENTS INCLUDE, AMONG OTHERS, THE FOLLOWING: DEREGULATION OF
ENERGY SUPPLY AND TELECOMMUNICATIONS; THE UNBUNDLING OF DELIVERY SERVICES; AND
INCREASINGLY COMPETITIVE ENERGY AND TELECOMMUNICATIONS MARKETPLACE; RESULTS OF
ANY ASSET DISPOSITIONS; SALES RETENTION AND GROWTH; FEDERAL AND STATE REGULATORY
ACTIONS; FUTURE LITIGATION RESULTS; COST OF CONSTRUCTION; OPERATING
RESTRICTIONS; INCREASED COSTS AND CONSTRUCTION DELAYS ATTRIBUTABLE TO
ENVIRONMENTAL REGULATIONS; NUCLEAR DECOMMISSIONING AND THE AVAILABILITY OF
REPROCESSING AND STORAGE FACILITIES FOR SPENT NUCLEAR FUEL; AND CREDIT MARKET
CONCERNS. THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE. THE FOREGOING LIST OF FACTORS PURSUANT TO THE LITIGATION
REFORM ACT SHOULD NOT BE CONSTRUED AS EXHAUSTIVE OR AS ADMISSION REGARDING THE
ADEQUACY OF DISCLOSURES MADE PRIOR TO THE EFFECTIVE DATE OF THE LITIGATION
REFORM ACT.
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SIGNATURE
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.
CONECTIV
Delmarva Power & Light Company
Atlantic City Electric Company
Date: June 15, 2000 /s/Philip S. Reese
Vice President and Treasurer
