Applications, hearings, determinations, etc.: Public utility holding company filings,

[Federal Register: June 4, 1999 (Volume 64, Number 107)]

[Notices]

[Page 30075-30076]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr04jn99-113]

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 filedwith 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 filedor 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\

\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. 99-14208Filed6-3-99; 8:45 am]

BILLING CODE 8010-01-M