[Federal Register Volume 64, Number 107 (Friday, June 4, 1999)]
[Notices]
[Pages 30075-30076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14208]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-27033]


Filings Under the Public Utility Holding Company Act of 1935, as 
Amended (``Act'')

May 28, 1999.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated under the Act. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendments is/are available for public 
inspection through the Commission's Branch of Public Reference.
    Interested persons wishing to comment or request a hearing on the

[[Page 30076]]

application(s) and/or declaration(s) should submit their views in 
writing by June 22, 1999, to the Secretary, Securities and Exchange 
Commission, Washington, D.C. 20549-0609, and serve a copy on the 
relevant applicant(s) and/or declarant(s) at the address(es) specified 
below. Proof of service (by affidavit or, in case of an attorney at 
law, by certificate) should be filed with the request. Any request for 
hearing should identify specifically the issues of facts or law that 
are disputed. A person who so requests will be notified of any hearing, 
if ordered, and will receive a copy of any notice or order issued in 
the matter. After June 22, 1999, the application(s) and/or 
declaration(s), as filed or as amended, may be granted and/or permitted 
to become effective.

Conectiv, et al. (70-9499)

    Conectiv, a registered public utility holding company, Atlantic 
City Electric Company (``ACE''), and Delmarva Power & Light Company 
(``Delmarva''), both utility subsidiaries of Conectiv (``Applicants''), 
all located at 800 King Street, Wilmington, Delaware 19899, have filed 
a declaration under section 12(c) of the Act and rules 46(a) and 54 
under the Act.
    Applicants note that each of the states in which ACE and Delmarva 
operate, i.e., New Jersey, Delaware, Maryland and Virginia, has enacted 
restructuring legislation that is intended to result in competition for 
the supply component of the price ACE and Delmarva charge to their 
retail customers. Applicants state that because of this legislation, 
certain costs that ACE and Delmarva have incurred to serve their 
customers (``stranded costs'') may not be recoverable from these 
customers. Applicants expect that the utility commissions in Delaware, 
Maryland and Virginia will issue orders in the second and third 
quarters (``Restructuring Orders'') that will allow applicants to 
quantify the amount of stranded costs that ACE and Delmarva will have 
to charge to their retained earnings.
    Applicants state that these charges may have an effect on 
Applicants' abilities to pay dividends out of retained earnings. For 
this reason, each Applicant seeks authority to pay dividends out of 
capital or unearned surplus should the charges to retained earnings 
exceed its level of retained earnings at the time of the charge.
    Specifically, Conectiv requests authority to pay dividends with 
respect to its common stock and Class A common stock for up to six 
quarters in amounts that would aggregate up to approximately $144 
million.\1\ ACE requests authority to pay dividends out of capital or 
unearned surplus to preferred stockholders and to Conectiv as the 
holder of ACE common stock for up to four quarters in amounts that 
would aggregate up to approximately $52 million.\2\ Delmarva requests 
authority to pay dividends out of capital or unearned surplus to 
preferred stockholders and to Conectiv as the holder of Delmarva common 
stock for up to four quarters in amounts that would aggregate up to 
approximately $52.4 million.\3\
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    \1\ This represents approximately ten percent of Conectiv's 
capital surplus as of March 31, 1999.
    \2\ This represents eleven percent of the ACE capital surplus as 
of March 31, 1999.
    \3\ This represents approximately ten percent of Delmarva's 
capital surplus as of March 31, 1999.

    For the Commission by the Division of Investment Management, 
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-14208 Filed 6-3-99; 8:45 am]
BILLING CODE 8010-01-M