Text

Annual Rept 1993 PECO Energy
	ML20069B597
Person / Time
Site:	Salem, Hope Creek
Issue date:	12/31/1993
From:	Paquette J; PECO ENERGY CO., (FORMERLY PHILADELPHIA ELECTRIC
To:	;
Shared Package
ML18100B099	List: ML18100B098; ML20069B597;
References
	NUDOCS 9405270313
	Download: ML20069B597 (48)
	v • d • e

{{#Wiki_filter:, i l l l l Building a new Company to meet the i l challenges of a competitive market. i i i w I i y ; :.. i i i f ~- i AnnualReport i993 l i, s v PECO ENERGY l 9405270313 940520 PDR ADOCK 05000272 I. PDR

c..

..:..7..> - -.~... c, / _.s ...l....-~ - '.r.. ~- ;. 4,. :..,. -.. _ y,..,. -..,.. - _ - - . :- 7, ; ;'..: ....e -...,.,. e,. '..,,.. ; .e: f .y ': . k...:,"'.:,;..{ ' j '. '\\;.. *

y j,: -.

..) f ' '. '; ;* '.$,'h. l ', ; v. :,. _'.Y I 'y.. ; ^ - (. .:. ~ ?j f.?,".4. v.': l.. _..'p,,j. .'.,.;.- _h ~ ;'-.l'[.'.. ? '$ '. s[f.,'.b f. ,:,. f l;[ 9.: :- '.c,'. ;.,. [. '_ ll 3 , ; - 1 . "..".i, 4 .., ; >.(.:~ f'. :.,y{. 5;. !.., g' ' l': L 3:', l &l. f)':. ',' ' ~ ? ' - ' ~- -l s ' ,~,- n.' .~ ',. .., _.,. ;, ;. 1 -,.,i.,.",') .. D; )1 - 'u' ); ".....: ,. ; rf..:lf.g. %

.)..,,, :' ;,

_.;.,',a 4,..

n y.' } -l

'^

17,;,,. : { '.- .s ;

}., I ;gi y ;;,.

' q. x : '- :- 3IA;,>:,.. ; ;. ;.; a.~.,,, O a , a;:.i '. .n:. - s, .:..g: ;,. '.,. J.t. .:,.. :.. ' ) ~ y ,n

..?

y.r.. ;;. - c L..,.i - :.u* * '.(s u ' ?;.,,.,. s .V,,. ~r: :'%". ~.. ~. c., q.' 4];.. }.,... a..., :v ' ~{ ^ ?.:;,. j *,c.;r.':. f i.:,

p..y,* >.c. ^ ". m) ;,"..:... ' ' '._ _., '.,.,;,, ' ay'.
' s..'..: . Wz ' 'N.. ).

.. e,%.. o ' e, :,' l,; '...' ..;..,.?",. i.s. . i..:. -;..,i, Q:':. -

g: * '

c

- - s-s

r -. ;. >

a T1.., J V,...',<. 7fl. 4."; : #..,%. ' ; O,.: '. i... '. W..,d ,c.'. e t ..\\,, h;.-; s. - ( * (./..,:,t,..... ; _ v.

.,,.r c.,;.- -. ;. *

.,.i..., y; 3 ;~.,, g,.. w,.:,.. w,.( ;.. ( y._.. ..... a..,;.,...,.,. s. . 2 ~..6,.f. :. .;,,,,i - s.. ,,y t, 3 ...,3,>. f... j...;,...,r. '.., s }r. *]; A _.[.,~- .. ; - l, - ...e,,.~,'.:,..., '.* ...7,,] '.f. ' y,3.,. :.. i, ; -.V. Jf.. * #, : l /0.3e: u a.

f. A,g; R:';. QJ.'. iq,f. g....a -. c..,...

.e. s J., '.: ' e -. 3. D s..- J. ' - {. _ ;,. - x -. \\' ' ;;,.. l: ,, -.. :, v, '..... :.,Mf.i. : ; : ' n..,'..,,.,,,: v.

, ' '. !.,,.s. %

C.'.,_*- q.: :: -.,.. '.. . ', ' : ^ - n: v..J ; ? ..:...,,.-..:... : h....- . m... -.

y....p n

u. 4 ... e .~.:. :.. ,.x . e,.. *..: :.....,., '. ',~,.,,., s. r. u:.;,.

,. *.. ',. *;L r :.. <. -

o e. ..a.. '...E s -. -:.r'...>- ....-.'..' 'or :

s. 5

..t. ^ - [,b 5. k,[/., ' i.. ^ y [b.[i._,. 'If '(( + ,.")... J, '. ',....,.........,(':.,;;,..,:,.,s,' r-...,.,,..,',-....,.......g,.,e.., s..- ........c., 3_',,. ,: u. ..: u

9... ::

..,. ;is' a s ;.....:......... ~., ~. .r.f,~...l...n..;'..'<.,,... -..........s '.b...,.o ' '.,. *,,.....' L:. ..,., se *,,.. . v, .f.. 5..,p.... ;... 2.. g .y h

f

!^ ': :'., '..,. ',. '-.-... ,s :f.,.,...,,,. Y. }'*:. f,. ', ,. :. g, c '- N. I, '_. e, ^ -

... '....:... -..,....,..~;,.;;

~n x..,..-- .t.,. '...,, ',. r..,..*.a, " y ,J',...* f,,.. ,s. E..".".... - i.. 6.:.. *

t.

e 'g.-.

a

.,6 :)., :.. ~....-. ,'g,. .1'..., ".! / ,..M... .a ? w .....9 .<t.'+. f% ? 9 k [ i. t,, ):):;.;? ;!)l.... '.:,. c.r ? ', ' ' Y-- t.....

a

...t. z. ', ' As.'.' ll-....,.., - ...f4%ek,.........t&%neth. &. sh,., iynpuineheifejUkenSJh..I00;h,00l$$WipQ U$$.,,k.e 3 .,, e$3

..-.,. '..,,..j t,..

..r..y V- ?.: s..t -..c s.. .-y .m..., m.. - ,...,.,.r - -~ :: e, ..-.,.,, a ;-..., 1,. .......p'. .e '...,:,.._n . ;,os .'1.. J f '(. '. fd '[,.'I '- A '",..,.'h,..s, ( *..., ',.*'l-

s. / g.

.. ',.:. l;'; , ( ",,., ~e }, ' l f. j, # .C ' 'l ' [, ' ' ', WeMsse[*p,ip $spiisp' o'sWeidh$aiMai dM,0..' 'i: jejspahselrep t'l;7.,M [; 5 '.' .h',D$$!iiM.-p! h ##(i4/ M;. i fj .ll, _. f. ' ' N { A ',. .',, .f'- l ?

N * ' ' *-

.' ' 'f. b ' '.l. ^ ' l ',; j l 'l 'f.h Ll, f.' ' % f',, ,. ';i..,.\\ ;.

L.

' _ ' q, ._;...- 3. ',

'.,'. *'*.,.v.:-'.

i - ;,. ' - ?.,,;. ; #,

..,,, : ' f, p' .l-, i,' .l.' h, ', ' ' ' ' ' ?. 'k .[ s 'l 4,, [ '. :.- ; ; '. ' '... / 'I

.? '; '. 't....,.,,-Q'_'_'.

V r... ;-

r..

_ < q:: s: .a

..g_...S

. f *..u '. ',':' ' , }*[:...: - '. ' v.. * ',;*,'._... :. lc - ( ;; ' ~ 0 '[ L' .):, i...... ;, y _'l ,.c..' ,.e ,',i_'_l., .,y

,'J..~.'..:.. : '. :.

. _, ': ;. '... '\\ (. * ( :. J._ _ '..,.: i,., f. '[6 G ^: . f ', ' *. : ;"..[. :[ ;} -ll....y $ G.t '.' " *-:.; - *. - ' _ il:; : ^ ' '

e.,

.. [.J. ' ' ' c

l,9 Q [,,. _[ 3: L & : : ' N.

,_.'.'..,,..'..=.....:.:l.:i f i L }.% . ; : '.;;. :.. J. ',i_ ^ ' : . i:.,. ; l V '. - ?,..*.. ..:...,.-....L. ".... , ;<,_ '. : y, _ _ , ;... zc,- ' l :. '. ; ; ; .a,p.., .,.n ,. f.,.._,.'.',..,.,..,. .l s.:.. ..,.l. ' _,., [

p..

...s,. ?_ .\\.. .. '. - l', i:' ?..?.}.,... ' _;, z,.,'.... - n.'

:;,,, :l;.:. ', 'se,...- '. -..... ;

r...,,.s..,. ., -. ' '.,..,.. ' ','......j,. .3:..-

l y...

...g... 5 ,,,;f. ,..,':q., ..* y.,.l'

,.., -. f ;' :%

s .c,[ ;. (,' c ' '.,' : /.,,.j:,. -, ,, _ ; ',., L.j ',;-.,*' - -,..M,, Y<'

l. !

S, c'..,"'. e.,..... -. ...N_. c :# ?., ' t .5 6 .4 9 I ? l, .. c l I, b -' .~ '.,i l s .p. '..;'.'* ' -'.....

4. >,e;. ;. _,:. v...,.,.. _.,..,

N:

' ^' ?' 4 l .c '..'.~,,4.- '.,.?...' .. _=_..'.. ~,.,._...,.;.:;, e. .i.y,~. '_,'..r ? y.,'.. .,. :. ? * -:......ld. ,,'.r._.s's.,.., '. *.,.,, 2, '. -*s.r,-';

~ - -. -

r ... h,.z.,.'.; T. ?..;' . '...'.) .g' :, t; \\ , fL'.,, y..- ;,,, ;. *.) i- + -( -..~....,- '- ', ' _ *: ' ' -. ... '..*, ',:. '. n !. 5,, l ,-s, i W, ',, "f _,, g.,,:, ,.n' W.. :. ',.. ' :.,,.. '. _..,.l'.'w;k .. j },s. > .g,., .y.s,, ...y ,,...1, :.., ..;q'.g, L e l h.Y, s ' c.. .f:_ _, ;. ' ; (_s f M f i,y,;s l l; y_._ l_ Q

Q.I;/ :l :'

.,s p)'gm& g &p'm.,[ & v e &m &m m ~& &,,,Q'.~ 'm.V-lm.. W l': Q '. x.,:i;,.. <.m.., *- (eTm..w.,r-,.v. un, )www.,n.,.y. w* ]'.. # rv, f's = = l.~r:. .c .h '.m. n.4. ' f

f'

..l,',,. ,.,,=,,g,. .b $. -

', ',l i,/,, p.,,s...',, '..

,y ';, ' _. [ 7,' ;, i 7r. r..

' 4 f

q . h. f.. .?. n'- ,,, ', ' ';'**..,.',m,1,.f',V**/ ' ). -{ e=,s,,,4 y/, .-;, r.,. ',, T-1 j e.,yj#.,, g(f"J Q. i,y.9;,;, ; g.4 ; M ,',/.. ' y.*:[ * '. 9- . '.I,.-.- , '. sDf y 'gn,s. o.p.,w, Q,R g(., :,,9.-: y y,',.,' ),. x >: :q;g ', e . (,.,,, K, M ':,;,'.< y *. ',

y. i. y 'r.. ';. ?..;e.'..'.'-

i' 37 * ). {.; pf ' ',.,,...( ',g.,a.p... .',,;.,.j,, .) g. ,y ~., < v,e g y., j., 3 _ ;q y

,,-,i,j

's, y y p ,.- ;( gjg o,,,

,: s.'..r. g.'y-.c'..

n. :;..,. f,l, y;;D \\

g

, yr y, g. __.

.,.,-.',. ~:.. : y.,, e 4, . +

e ;? :),

.c.. .,.!:.! }... :.::,%,,,;.; ,, j.;, o. ; n... q, n j ;.:i,,g.: - y.. i, ; r. :;.., (, n. ..:. y qa.. .h ......... a Y. : . M. qQ.;ip*p;.5,Q, ;.bf%,,. p W: Yi? yr., n p... c, -.s.- x e;> t.w: C'. a ,\\. .;,.. _ l.. '. J ;..m:. Mf,!y,"l; a .Wd

y. 3.:u /:
. ; s y ;.'

j -Q*k t . > :. 2::',Wl . es v

ir >.. !._,~,h 0

- n h'.a.9 v M

,p,,,

ggy %...> e.,<

M,.;",n',.*). y _l. ~,f(:l..,c:.m Q) tc T. 5%. t, 3 '7 g};..lif,., p( L*{,* .'

h n

.}.,. k r 7,-z.,,.,.'o. '.... - m ,, '\\ n ,.. c., '+ ;' 'e; a.., ... v,',: y.. 'lg ' *f_ t,,!

l., V,f.g a,.4>.h..*

y 'i;'.$. Y.h, yh ? Pls. p,,j.'} :.,, '..,. -. _ _ -. , ; '. 1 :: ..,,;g,.,.,'e.'. Q ~ yn.. 9: ' ,.h. '.=; .e :' .t: ..[ r..,.,.,.-.c,+,,.:,;,.~,: ,..s,s. s .y .,,s,~ f,$'.,:I,..........;...,..,,,.,q , p ,, + ,.;.y,, .r.,, .., y ,m, ,.,, \\... 9. 9y_ g.e

/

.]._t,., }. lNb.S J: \\ / [,",M N,, '. '..,, ;,.?").. '. I...... ( b.i c, i l', k,. g s,.:,. ,t .g ,y, M \\(. ,,_g ,oj;:,g, ..l .s y 'h ' $p M f., ^ # ? AI#. MN',I" '.f "..\\ l 0 .. / 'Y ,,'l. ' ' ' '.;. 1 ',' ','7. $- . g* i 4. ,m. ; a'. n. :..... I.' n, :. ;;( m '.:.7, k, ' .,s ; 'h* ,7' -, '. _j. ' * (({* '.~ ' qq &,h.w, ::;. ' - + l ' 'e fi ', f * ...,,. k d a 2 (. Y M*tl( [,3.,..'fl, ",[, ,[.* , e. m..::,'w 4 p.g m wy!r. ; .. g 7 ; +. n m,, y ; ,t l * - ,. ' ' i,,' ;f 3 'f* q ,[ 5,

I't' '
E:.
*~

-'-? o'-

I 's 5 '. hi'.

T k:.I 5( M-l, l

'E'

"' " W' Y ', * ' ' '? A '., ..'t..'- i, , hd [ ,s, .,... i .4,,) ' N,* ' y-.,i..*.' '.,.z.j' !. ' 'Ij N.[] I'* p d,.h :p.):.j f l *' ',,, N t'- [.,:': '.d';p...'I.'. .8,'* [, ' ' f^., ' ;. .l. ' ' l -

7 s

hh 7-l. j,r g, )., e.

[ $J 0

..%.g g r;,;Q t,Q

g,; a 'l

de., 6,ltl,, *

,.6 :...

, _* '., - }f

p',dp.,

',.U ' ' $)'s.,. ya, 4

s.,e-

,'i ,,l ,,. y'>

.4p: ,4...;....

f.,., e' '....;; '.,., -,... T.. t At; * ;.,,. y,,.."./.-

n. ~

. m.

s g. ' 7,'_ s* i,. M'i..

p. ht, f, - Q. ',..'

,p. .,.,;,g f. 6 4 ', ',. ;.-s' '.;,( s .e ,G s, - ;; s.;*- - i *-* r' y; f ,8 e. .I. l* ,..",q..'f,'a ',, p. p'* , s . y_.',,..., 3.- ., ~ ,y,'... %. ;,,g,1;.h. %,,

,J,

. l

.,r ,. ~,. ~ =.,,.': 4.ha.,=. -l ,,h - ~

p...

.s. %. *, %..) ..);4.,,:er;9 r ',, .y .,.s /..V... ,'t,gt,,,t , ;f, .'O,,q \\. *" '. i *'- p. ', - ' - :,. ./- = 'E.. ' Y,.<l l-8, , y, a W' a .v .m, a a... : n.:..... m : r.... m m

.-]

.. l ' ' ', ;,'*

',[ e, ......,f '! tl 'l ' 5. ' ',,, * ' "., ',, O l*' Y ' ',_,.,? II - .z l l,' ._,. *,:=}'j;l';' k l ,,' _ f,7

,'v,, -

' h *, -. '. ,\\ ,( 2. [ '. .F ,r ,"l' j. i b,. '[ ' '* l 7.:[ ,,,., *, ',., [ h ' '. .[. " ' *

kt *," f j,' ' [, '

. e :: 1- ' ' "-, j-n.'~. "m.: e:. : ;.

v. n e w :7' s... !,.a..,;,..',,....,./

1:: t.:..,,., :.,.;.,,:? <~ ~ J. ' \\ _.. n,. "e

..' >... ::..n,,... c'.. :: :. > ::, J..: ',... .j[" ..:.>.'..'.^': w.': p.. p. ;. r.. : : n..a :~. :., ; v., L,,. J. :~... r :. :..w .M + f ..,'.. :.. z. :,. ~.,, :.. y.., g.. '... s,, :.y %... ;.'. ;,.' ' ':.';. <... ..,,G,.. z *. < : ^;..C

s

< ~.. .- e e\\ '. -l

3's.

y ;

. ; y

. 4,. ;.. n.,, p:y.,r': z..; },. ' n.,., : :' ;. 1- .. ',. = fc l.,; e, s

..?

..., :..y

,,, n, ,s'.. -; 7., ;. r s'.. ; q ~,,. :. ;..,.,

.;....., g..

.y.

..a 7 3.. '..,..,.,,',..... :,..,...

-,,,:-.:..;.;;,..,._:~._.."s..,.,..,c::...'. ....... ;. h.. og..".,...e,..

u. y _ ~. :,,.,......s<t..:..;-

..y... ~..f' u... ......%,, '. ;,.,..... : 3 : .,,c.m,,. .s ,,6 ,.c.

..,: w.

, + e,j:. :.. r.. , {. t . ' - + 6,.;. 9:,.?p..:. /p. 3.,. .,s..'.-..

<.4; '..~. ;. '...,:.. :. n Y ~.:. :

,~.'..g;...:..-.e~:........ .c 4 n, y..+. :. w.:....:, .* ?,.: - - : :. . ::). f.L.'

A..,.,j'..',...,r.~.'.'".;*'c,'.

s. n.,g

.,e- ..y

a,': ..* c & '.~ -: :-.

,..e.',=:Y..,' (;n ;. 3; s... d'?;,t :/.:. : n... : ^ yQ :.:J '. ' ;...: W.y "; &,( ;;,.,.f.* t,. ' :;. v. g. 3,. '. i '

v:,. % l< s.'..,;;.g,;;:; ;;;,.

4,.... T

- u

> 4, y..,....,..,, ..:. ;,,. c.. 3.. ,.^gi.... g ., i

n..

,,s '.l. 3(' : a; :. g...';;,}; ; >' !%.. ',..'qA,J V f '. 3.% .., s. 1 -..;;; ?.'1, _ , ' f. 5, .;,R ".... ^., ; a...9 'a... .. l6 .o -:....: /. '.v.,...;.. 'N 7.1. i.. :.'"4.l % d.;,.4 L'g:y,k.. _ ';. < : .c ', :....v~

, yq;'.,@m,: . n s.. :.

3... i '.... ;;.,,.. ; 9,.- ..t...

s..Y:

r: < ; Q:.ng.;y;g.; n..< :.* / , y, i l ~,, '....o.. cp,.s,6 : y.,,...... >. ;..,.j:. y,;',,.. f ,1 /l l P 1.: l i, (,'....,.:- '.. ' ;J y,;/, 3., i '- ..*.. 9.c .t. C. 7 /; ',. T....x -.... .m. t.,

y ;....,....<.,

,s.;.,

, +.,: Nc

+g;,. r 7., ?,.f.,'*'6?. .c e ,.f t. .-,';,,.'.. '+ g. - _ v:n,n. ,.,'.;...'./.r"'s< f f J,~ w, ,.... ~' : :;.. L, '.,'. : s-i,. ; 's ",%~+ $I,.

... \\

.,, ' ',;..l.. 'n,,j,,,. :;.., y f s ',. : :,....:, _.. ? -... -....,, ;.....'.'3..),'. *,., . ;. ;,. : :,~., , n.

l l PECO Energy Company CONTENTS Financial Highlights I993 I991 % Change Operating Revenues $3,988.129,000 $3,962,469JXX) 0.6% Letter to Shareholders Operating Expenses, excluding Taxes $2,300,195,000 $2,382,742JXK) (3.5 fr<. Taxes Charged to Operations $652,523,000 $546,351JXK) 19.49 Operating income $1,035,411,000 $1,033,376JXX) 0.2% Report of 1993 Operations Other income and Deductions $12,057,000 $(49,065JXX)) 124.6 % Earnings Applicable to Common Stock $541,590,000 $418,210JXX) 29.5 % Earnings per Average Common Share $2.45 $ 1.90 28.9% Management's Discussion and Analysis f Financial Condition and Cash Dividends Paid per Common Share $1.43 $1.325 7.9% Results of Operations Average Shares of Common Stock Outstanding 221,072,000 220,245fXX) 0.4% Construction Expenditures $574,650,000 $563,546,000 2.09 Common Shareholders' Equity $4,263,418,000 $4,022.169J)00 6.09 Re ort ofIndependent Accountants 1 l Consolidated Financial Statements Notes to Consolidated Financial Statements 1 Financial Statistics Operating Statistics Officers and Directors Shareholder information i l Ont l i j

To Our Shoreholders. I'm pleased to report to you that 1993, the final year for the Company - "n called Philadelphia Electric, was a successful one. ~ ~ Earnings increased to $2.45 per share, up 299' over depressed 1992 earn-i c a: hj$]f[Q.y ings.The dividend rate was increased 99c' and the overall financial condition of R ..... s the Company continued to recover from the adverse 1990 Limerick Unit No. 2 t i h Rate Order by the Pennsylvania Public Utility Commission. Operations were also successful in 1993. Electric and gas energy sales ~ jfy p Q g Q,j' set records and new peak loads were established. Our cost-containment program continued to produce benefits, especially the reduction of the cost of capital through j we - p our on-going debt and preferred stock refinancing and redemption program. A The Company's nuclear units produced a record amount of electricity ~M y,/ by operating at a combined capacity factor of over 789c', which is above the fk national average. Our electric and gas customers benefitted once again from . y lower average bills during the year. g{ Building A New Company With the approval of our shareholders, the Company's name was changed corNn utewin' >r' to PECO Energy Company on January 1,1994. Despite the fact that the recent performance by the Company has been strong, your management has been ag-Pmi*"'and l gressively building a new Company to prepare for the increased level of compe-chiefo eruringoffkcr v tition which is anticipated in the electric utility market.The name change is a small, but highly visible, part of that strategy and conveys a new image of a more i modern Company that is preparing itself for the future. It also signifies that we l do much more than merely sell electricity in Philadelphia. As a part of our new image, this annual report is a deliberate depar-l ture from past ones, designed to hold production costs to a minimum and yet continue to convey essential information to our investors and other inter-i ested parties. The need to build a new Company grew from the 1987 Peach Bottom shutdown when we recognized that the Company was ill prepared to face the future. The pace of change accelerated as a result of the 1990 dividend reduc-tion, the passage of the 1992 National Energy Policy Act, which enhances com-petition in the electric generation market, and the realization that open competition in all markets could be on the horizon.Over the past six years, we have taken a number of major steps to improve the Company's future prospects such as: assembling a new senior management team with widely diversified experi-t ence, including executives from unregulated industries; introducing a Company-wide Quality Management program to assist our employees in improving individual and team performance; establishing nationally recognized programs for the selection and training of supervisors and for management development; initiating an effective cost-containment program; authorizing a number of projects which will extend the economic lives and improve the efficiency of our base-load steam and hydroelectric generating fa-cilities; and using reengineering techniques to redesign and dramatically improve some of our basic work processes, starting with the way we serve our customers. l j !WO l - - ~..

I h r l l l l During 1993, as progress was made in all of these programs, two other significant events occurred. In June, eligible employees voted overwhelmingly against union representation. Remaining union-free enables the Company to retain the flexibility to address the changes re-quired to compete more effectively, thus strengthening the Company and providing high employ-ment security to the overwhelming majority of employees. In September, we announced plans to reorganize the Company into five strategic business units. The reorganization is expected to be fully implemented by January 1,1995. The five units will be as follows: the Consmner Energy Services Group will distribute energy pmducts and services to the Company's retail customers and will consist primarily of the existing seven geographic divi-sions, plus marketing, sales, engineering and support services; l the Gas Services Group will be responsible for managing the Company's gas operations; the Nuclear Generation Group will be responsible for operating the Company's nuclear generating stations; l the Power Generation Group will be responsible for operating the Company's fossil-fired and hydroelectric generating units; and Bulk Power Enterprises will market and sell energy products to wholesale customers inside and outside the Company's service territory. The units have been structured according to their different regulatory and customer focuses to position them to take advantage of specific opportunities in their evolving energy markets. LooMagAhead The immediate future is going to be challenging, and possibly chaotic, for the electric utility industry. By anticipating the need to change and with a commitment to customer satisfac-tion, operational excellence and superior shareholder value as the key components of our corpo-rate strategy, I believe PECO Energy will be well positioned to address the challenges and opportunities of the increasingly competitive marketplace of the future. l We appreciate the support of our shareholders during these l interesting times. I have great confidence in our strong management /oseph F. raquerre.>r. team and our talented and caring employees who have demonstrated Chairman of she Board Continued commitment to enhancing customer satisfaction and share-and Cherf Em utiic Ogim holder value. Together, we are determined to fulfill your expectations for the new PECO Energy Company. ? g. l l 5-. u.s.y .,,r 3 f {Qf. } [.... !s. \\ '., J. F. Paquette, Jr. s." r' Chaimian of the Board / and Chief Executive l ~ ~ Officer y t g three I

a.

. '. * - ~. a' xp., ...M-A EARNINGS IMPROVE; DIVIDEND INCREASES N 7;i:g j Common stock eamings improved to $2.45 per share in 1993, up from a .w : Cd r>W ;.g "/ $1.90 in 1992. The earnings increase was primarily attributable to the +- ,. n - g1 settlement of the Peach Bottom litigation which depressed 1992 earn-F, 4W# ings, more favorable weather in 1993, the Company's on-going debt f and preferred stock refinancing and redemption program and lower 'i' charges for uncollectible accounts. These improvements were par-4 tially offset by non-recurring federal income tax settlements in 1992 and the higher 1993 federal iacome tax rate. In October, the Board of Directors increased the quarterly common stock dividend by 9% from $0.35 per share to 0.38 per share, or $1.52 per share on an annualized basis, beginning with the December 1993 payment.This is the third increase since the 1990 dividend reduction and reflects the Company's continued fi-nancial improvement. Philadelphia Electric is now SALES CLIMB Total electric kilowatthour sales increased PECO Energy Company. 6% primarily due to warmer weather and increased sales to other utilities. Gas soki ThiS new C0fporate ident t/ and transported increased 9% primarily due to higher interruptible sales and gas used at re[lectS O new, more the Company's Cromby electric generating station which was converted in 1992 to bum Customer-f0CUSed OrganIZ0 tion. either natural gas or oil. The number of electric and gas customers in all classes except large commercial and industrial increased. pur

I FINANCING HIGHLIGHTS The Company sold $2.1 billion of securities in 1993, the proceeds of which were used to refinance higher-cost debt and preferred stock, as summarized below: Month Security Millions of Dollars I e bruary Mortgage bonds due 2003 60 6-5/89 $ 250 Mortgage bonds due 2023 @ 7-3/49 100 March Preferred stock @ $7.48 50 April Tatexempt bonds--floating rate l54 May Mortgage bonds due 2003 @ 6-1/29 200 Mortgage bonds due 2023 @ 7-3/49 250 June Preferred stock @ 56.12 43 August Mortgage bonds due 1998 @ 5-3/89 225 Mortgage bonds due 2005 @ 6-3/89 75 Mortgage bonds due 2023 @ 7-1/8% 2fX) Tas-exempt bonds-floating rate 43 September Tas-exempt bonds-floating rate 23 October Mortgage bonds due 2024 @ 7-l/49 225 Mortgage bonds due 2001 (d 5-5/89 250 Total 52,138 E A R NINGS A ND "" "S ' "E Wi EN s the redemption of $199 million of securi-Dollars Per Share ties with internally generated funds and the restructuring of a 5250 million nuclear 2.50 - 2.50 fuel financing, result in annualized sav-ings of approximately $55 million, or 2,00 - - - 2.00 $0.15 per share in earnings. I.so - l.so C A PITAL EXPENDITUR ES S TA BILIZ E l 00 l 00 Capital expenditures for 1993 were 5575 million compared to $564 million in 1992. .50 .50 Major outlays were for expansion of the electric transmission and distribution sys-0 o 89 90 91 92 93 ERE Earnings Per Shore ENBC Dividends Poid Per Share PECO [NERGY se l

tem and nuclear fuel Budgeted capital With the prospect ofinCreaSed I outlays for 1994 of $575 million are all expected to be supplied by internally gen' Competition, PECO Energy will erated funds, as was the case in 1993. proyide unj ue Solutions to meet R ATE MATTERS q in September, the Pennsylvania Public Utility Commission (PUC) denied the customers'Speci[IC Deeds. Company's request for a 1.5% electric rate increase to recover currently"the costs associated with the implementation of Statement of Financial Accounting Standards (SFAS) No.'106," Employers' Accounting for Postretirement Benefits OtherThan Pensions." Neverthe-less, the PUC permitted the Company to defer these costs for future recovery subject to consider-ation in the Company's next base-rate case. The Company has appealed the PUC's decision to the Commorwealth Court. The Company's future earnings will be adversely affected if full recov-ery of these deferred costs is not perrr.itted. O v g, J i

COMMON STOCK P RIC E VS. B O O K V A L U E In December 1993, following a three-year investigation, the g,,,,,, p,, 33,,, PUC approved a cost-recovery mechanism for Demand Side Man-agement (DSM) programs that allows the current recovery of DSM 35 35 program costs, recovery through base-rate cases oflost revenues and the ability to earn a performance incentive. As part of the order, the 30 30 -]-- 25 Company is required to file a DSM surcharge tariff and a DSM 25 progress plan by March 1994. The Company is currently evaluating 20 20 the appropriate programs to include in the plan. 15 - - is For 64 years, the Company has supplied electric ser- '~ ~ ~ - - vice to its Maryland subsidiary Conowingo Power Company 5 ~~ --~ ~~~ -- - ~5 (COPCO). The service is currently provided under a tariff approved l by the Federal Energy Regulatory Commission. In 1993, the o-o 89 90 91 92 93 Maryland Public Service Commission (MdPSC) ordered an in-stock prices High gang g,,g y,y,, s.. vestigation to determine whether the current power supply from 4 aoyar PECO Energy is COPCO's least-cost alternative. In the spirit of competitive bidding, the MdPSC has also invited other utilities to participate in this proceed-l ing. The investigation is not expected to be completed until late 1994. The Company is developing strategies to protect both customer and shareholder interests in this matter. PJM SEPAR ATES FROM COMPANY Since its establishment in 1927 as the nation's first major power pool, the Pennsylvania-New Jersey-Maryland (PJM) Interconnection was administered by the Company using Company em-playees. PJM fully integrates the bulk-power generating and transmission operations of eleven electric utilities, including the Company, thereby enabling member comp mies 'o share resources and supply electricity more cost-effectively by using the lowest cost power a' ailable. Effective July 1,1993, PJM became responsible for handling its own administrative ser-vices. The 120 people who worked at PJM became employees of the newly formed PJM Intercon-nection Association. Severing administrative ties with the Company provides PJM with greater flexibility and better positions it to function in the emerging competitive environment. PECO ENERGY seven

i ) 1 OPER ATING HIGHLIGHTS ~ The Company's 1993 operational achievements reflect the Company's preparation for the challeng-ing, competitive environment of the future, j Customer Operations - Delinquent accounts deemed uncollectible and charged to expense de-j creased by $31 million due to the Company's aggressive campaign to reduce delinquent accounts. i Customer Connections - More than 7,300 new residential units were connected in 1993. Electric space heating was installed in 28% of these units and gas heat in 55% for a total market penetration of 83% of new residential units. } Station Upgrades - Work on the $54 million overhaul of Eddystone Unit No. 2 was com-pleted, and work on a $32 million program to extend the life of the Conowingo llydroelectric I Station continued on schedule. The Company also began converting Eddystone Units No. 3 and No. 4 to use natural gas or oil. Gas Operations - The Company ELECTRIC S ALES continued to promote the use of natural - B illi o n xilo w a e e h o u ri gas vehicles in its service territory. PECO Energy currently has 95 natural gas ve-hicles in its own fleet and plans to replace an additional 200 vehicles with natural - 40 - 40 gas vehicles within the next two years. 30 l- - - - -30 Nuclear-The Company's nuclear units performed at a record capacity "E 20 - --- Company camed a performance bonus io - - - - - io of $10 million which is reflected in 1993 income, The bonus is achieved under ~ -~~ - [,[93' the nuclear performance standard estab- ,o man soie, c other util;<;e, man a,cais sales pany's nuclear generation produced an er .n

_ ~. -.. 4 \\ \\ 1 ii i a 1 f l estimated $550 million of fuel savings for its customers in 1993. v s In March, Limerick Unit No. 2 completed a refueling outage. l 1 i in only 53 days, the most eRicient in the Company's history. This ] 4 j compares to the previous best Limerick refueling outage of 75 days. } Similarly, Peach Bottom Unit No. 3 completed a 58-day refueling i i outage in November which was significantly shorter than any previ-ous Peach Bottom refueling outage since 1986. h ~ All four Company-operated nuclear units (at Limerick and Peach 1 Bottom) now are loaded with fuel designed for 242 month operatingcycles i between refuelings, rather than the previous 18-month cycle.This has j j improved capacity factors and upgraded licensing and testing programs. The comprehensive reorganization of nuclear operations which began 1 last year progressed significantly in 1993 and is to be completed in early 1995. The reorganization is expected to eliminate 613 positions through retirements l and transfers and produce annual savings of approximately $31 million. j During 1993, the Company nego-tiated an innovative agreement with the l Long Island Power Authority (LIPA) l which will produce significant benefits At PECO Energy, for the Company's shareholders and customers. Under the agreement, LIPA Customer Satisfaction agreed to transfer slightly irradiated 1 nuclear fuel from Shoreham Nuclear j iS the target Power Station on Long Island, New York, l to the Company for use at Limerick. LIPA l Of eOCh empIOyee. wiii pay the Company 546 million to as-sume ownership of the fuel.The fuel trans-fer is expected to save PECO Energy i 4 i PECO ENERGY i i I

i i t I. customers about $70 million in future years, because it will replace fuel that otherwise would l have to be purchased. By year-end, the Company had received 18 of the expected 33 shipments. l UNION ORGANIZATION ATTEMPT FAILS An attempt by the International Brotherhood of Electrical Workers (IBEW) and the indepen- ] dent Group Association (IGA) to represent the Company's production, transmission and dis-l tribution maintenance, clerical and some professional employees was overwhelmingly voted l down by employees. The National Labor Relations Board-ordered election took place in June with 3.530 l employees (64% of the votes cast) voting "No Union." The IBEW and the IGA received 1,260 and 719 f votes, respectively. The Company's management team campaigned strongly against union representation because it believes that a union-free work environment enables the Company to work more closely with its employees to better address the increasingly competitive nature of our industry and to enhance the future prospects of the Company. j ECONOMIC DEVELOPMENT l-After many years of financial decline and negative publicity, Phila-xe j

llfI l

1 + -... i& ' $ 4y v-j ii,x(Lyfl% i e j , q. ..g f 4 j ten } 4 .. _...,... - ~,.....,,..... -

G AS S ALES & TRANSPORTED GAS Mon Cubec reet delphia, through the leadership of the city's new mayor and the president of city council, has effectively built a coalition for change. Philadelphia has balanced 90 - - - - 90 its budget, privatized many city services and received a widespread vote of con- - 80 80 T u fidence from Wall Street and the local business community. Philadelphia's im-7g. 7g age has rebounded not only locally, but nationally and internationally. In 1993, [ _,_'1__ _ q 6g 60 h s h the Philadelphia region was ranked the third best place to live out of 343 metro-30 so a politan areas in North America, according to Places Rated Almanac. In addition, 40 - d - -j- - p 40 Fartune Magazine has rated Philadelphia as one of the ten best cities for skilled 30 [-l- - /> ) 30 a h-l-)- g 20 technical workers and the general quality of its labor force. 20 - 'O Despite a sluggish national economy, there are some positive economic f - ~~ ~ - 'O O- --O developments in the region. The recently completed Pennsylvania Convention 89 90 91 92 93 Center in center city Philadelphia, the second largest convention facility in the Northeast,is expected to create approximately 6,000 permanent jobs by 1995. Infrastructure improvements to Philadelphia International Airport also bode well for the region's future business outlook. In 1993, the Company's targeted and aggressive marketing campaign attracted 19 companies and 4,000 jobs to the region. The success of Quality Management depends upon teamwork. 4 PECO ENERGY u ewen

ELECTRIC FUEL COST & F NUCLEAR GENERATION 1 tlkWh % Nuclear 2.50 [- Q-D D-60 W 2.00-- t 45 {" .3... 1.50-- .g... -30 jk i,. 1.00" l .50 - i i 0- -0 1 89 90 91 92 93 t- ^ Nuclear j , ' ^ g mumm Fuel Cost O Generation {; g,L;. L

a.. g. -

j; '. 2 ~- HGURE2 CONSTRUCTION je .f EXPENDITURES & f-' INTERNAL CASH FLOW j. Milhon.I

,200 1,200 l.-

t i,w0 . i.0* p 800- - 800 e U !.E 600- - 600 N

Despite

~ L 400 4% j. V isignificant chbnges,; 2w- "2% }. I O- -0 i 'he Com^pany ~ remains e t 89 90 91 92 93 C.n,,,,c,,,,, l.,te,..I i-meme Expenditures amma Cash 4 Committed to increOSing um ,n,,L oggy, i. INTEREST CHARGES 11 Debt interest i' Mdhon_$ . Shareholder VQlUe. 1* 1.. 6,000-600 [ 5,000 " 500 1-j, 4,000-- -400 3,000-- "300 3 2,000-- 100 L 1,000- -100 O-0 89 90 91 92 93 4 P summ Debt e interest . ~- _.,

financial Progress Continues reduced from a peak of $656 million in 1989 to $469 mil-During 1993, the Company continued to make progress lion in 1993. This reduction of $187.nillion is due in part in strengthening its fundamental financial position and to debt reduction, but more directly to the Company's increasing shareholder value, aggressive refinancing program. Since 1989, over $4.4 Total revenues approached $4.0 billion in 1993 - up billion of long-term debt has been refinanced and the aver-0.6'7c from 1992 primarily due to favorable weather. Net age interest cost of outstanding debt has been reduced income of $591 million was up 23% Earnings per share from 10% to 7E The annualized interest savings from in 1993 totaled $2.45,29% above 1992 despite a slight 1993 refinancings amount to $55 million, or 50.15 on increase in the number of shares outstanding. The annual an earnings per share basis. dividend rate was increased by 9% to $1.52 per share, With the reduction in the level of debt, long-term debt beginning with the December 1993 payment. as a percentage of total capital has significantly improved j The charts on page 12 illustrate some of the financial from the peak level of 1990, decreasing from 57.2% to achievements over the past five years. Electric fuel and 51.3% at year-end 1993. energy interchange costs (Figure 1) have decreased 40% Total shareholder return measures the combined return since 1989. The restart of Peach Bottom in 1989 and the of stock price appreciation and accumulated dividends, start-up of Limerick Unit No. 2 in 1990 significantly in-Figure 4 shows that the total return for Company share-creased the nuclear component of the Company's total holders for the five-year period 1989 through 1993 has electric power output, which now amounts to 60E exceeded both the S&P 500 stock index and the Dow The resulting lower fuel costs are passed along to retail Jones Utility Aserage. Assuming an initial investment of customers through the Energy Cost Adjustment; however, $100 at year-end 1988 in each attemative, the $100 invest-l under the tenns of the Limerick Unit No. 2 rate case settle. ment in Company stock more than doubled, amounting to ment, beginning in April 1994, a portion of the Limerick $213 including accumulated dividends. This return was energy savings will be retained by the Company to benefit. 25'7o more than the Dow Jones Utility Average at $170 earnings for common shareholders and partially offset the and 8% higher than the S&P 500 stock index at $197. Limerick Unit No. 2 excess capacity penahy. See note 2 of Notes to Consolidated Financial Statements. Total employment, including contractors, has decreased from 18,700 in 1988 to 11,800 at the end of 1993. Most TOTAL SHAREHOLDER REWRN of the reduction through 1990 represents the release of contract labor used to build Limerick Unit No. 2. The dom 250 250 number of Company employees has decreased from 1 I,300 in 1988 to 9,400 in 1993 primarily due to an early retire-ment program which was completed in 1991. The total 200~ 7200 reduction of 6,900 positions lowered annual expenditures hy over $410 million. y'. Construction expenditures (Figure 2) decreased dra-150-- ,/ 150 l matically with the completion of the nuclear construction program. Annual construction expenditures are now ex-pected to be $500 to $600 million. Internal cash flow has 100 100 also increased significantly and now exceeds construction i needs, allowing the Company to reduce debt to further strengthen the balance sheet. O N"* N88 0 89 90 91 92 93 Total debt (Figure 3) has decreased from $5.9 billion

# # "jono oo, in 1990 to $5.3 billion in 1993. Annualinterest has been thereen

PECO Energy Company and S u b sidia r y C o m p a rt i e s &nagemen:N Diwuwdon and Analysis of Icinancial Condit ? and.Resulever operations Earnings and Dividends The unusually cool summer of 1992 was the major reason Earnings per common share in 1993 were $2.45 compared for decreased residential sales. to $1.90 in 1992. The increase in earnings was primarily Gas revenues increased $9 million in 1992 compared to due to the settlement of the litigation in connection with 1991 primarily as a result of higher sales to house-heating the 1987 shutdown of the peach Bottom Atomic Power customers due to the cooler weather and an increase in Station (Peach Bottom), which reduced 1992 eamings by house-heating customers. $0.27 per share; more favorable weather in 1993, w hich increased earnings by $0.26 per share; and the Company's fuel and Energy interchange Expense on-going debt and preferred stock refinancing and redemp-1993 vs 1992 tion program, which increased earnings by 50.18 per share. Fuel and energy interchange costs decreased $50 million in These improvements were partially offset by non-recurring 1993 compared to 1992 primarily due to the Company's federal income tax settlements, which increased 1992 carn-increased nuclear generation, which reduced higher-cost ings by 50.10 per share, and the higher 1993 federal income interchange purchases, and lower cost of fuel. Nuclear gen-tax rate, which decreased camings by $0.04 per share. eration utilizes the Company's lowest cost fuel. These As a result of its improved financial conditian, the decreases were partially offset by increased output. Company increased its annual common stock dividend by 1992 vs 1991 9% to $1.52 per share, effective with the dividend paid in Fuel and energy interchange costs decreased $70 million in December 1993. 1992 compared to 1991 primarily due to lower fuel costs and to slightly lower output. Operating Revenues Electric Revenue Increase /(Decrease) Other Operatmg and Maintenance Expenses pfillions o/Dollarsi '93 ss '92 '92 vs '91 1993 v51992 Sales 100 $ U0i) .her operating and maintenance expenses decreased $44 '"*E " ' "* I" Tax Adjustment Revenues (19) 48 c rges f r une c wounts, lown adminhadm Fuel Adjustment Revenue (106) (22) E"""" * "*#*

- Y "* " * *"

Energy and Capacity Sales 33 12 ' "'E* 8i $ (65) Nuclear Group Voluntary Early Retirement Program and m Voluntary Separation Package. These decreases were par-1993 rs1992 tially offset by increases in other operating and mainte. Electric revenues increased $8 million in 1993 compared nance charges related to the Company's generating units. to 1992 primarily as a result of favorable weather and 1992 vs 1991 higher sales to other utilities, partially offset by the pass-Other operating and maintenance expenses increased $85 through of lower fuel costs to customers and lower rev-million in 1992 compared to 1991 primarily due to higher enues from large commercial and industrial customers. charges for uncollectible accounts, non-recurring mainte-Effective April 1,1993, the Energy Cost Adjustment nance expenditures incurred at the Company's nuclear (ECA) was changed from a credit value of 3.764 mills per generating facilit es, the charge for the Nuclear Group i kilowatthour (kWh) to a credit value of 7.600 mills per Voluntary Early Retirement Program and Voluntary Sepa-kWh, which represents a decrease in annual revenue of ration Package, higher accruals for environmental liabilities $123 million. and increases in other administrative and general expenses. l Gas revenues increased $17 million in 1993 compared to 1992 primarily as a result of higher interruptible sales Depreciation Expense resulting from favorable market conditions and an in. Depreciation expense increased in both 1993 and 1992 crease in gas being used at the Cempany's electric gen-comparad to the prior year primarily due to additions to erating stations. plant in service. 1992 rs199/ Electric revenues decreased $65 million in 1992 compared Allowance for Funds Used During Construction to 1991 primarily as a result of lower sales to residential /993 vs 1992 customers and large commercial and industrial customers Allowance for Funds Used During Construction (AFUDC) and the pass-through of lower fuel costs to customers. This increased in 1993 compared to 1992 primarily due to an was partially offset by increased sales to house-heating increase in Construction Work in Progress, partially offset customers and small commercial and industrial customers. by a decrease in the 1993 AFUDC rate. founeen l ~-

PEco Ene rgy Company and Subsidiary Unmpanies scial Condition andtesidts on ask m ManagementY &caulon and Analysis of g 1992 vs 1991 primarily due to the Company's on-going program to i AFUDC decreased in 1992 compared to 1991 primarily afinance and redeem higher-interest long-term debt and due to a decrease in the 1992 AFUDC rate, lower interest rates on bank borrowings. Income Taxes Preferred Stock Dividends As discussed further in note 12 of Notes to Consolidated Preferred stock dividends decreased in both 1993 ud 1992 Financial Statements, the Financial Accounting Standards compared to the prior year primarily due to the reduced Board (FASB) issued Statement of Financial Accounting number of preferred shares outstanding and the refinancing Standards (SFAS) No.109. " Accounting for income of higher-cost preferred stock. Taxes," which was adopted in the first quarter of 1993. Adoption of SFAS No.109 did not have a material effect Liquidity and capital Resources l upon the Company's results of operations as the Company The Company's capital requirements are primarily for expects to receive recovery foc n ses when paid. capital expenditures for its construction program and for 1993 vs 1992 debt service. Capital resources available to meet these income taxes charged to operations and to other income requirements and dividend paymints are funded from cash 1 increased in 1993 compared to 1992 due to the cost provided by utility operations and, to the extent necessary, associated with the 1992 settlement of the Peach Bottom external financing. co-owners' litigation, higher pre-tax income, lower The Company meets its short-term liquidity require-interest expense, the reduction in 1992 income taxes as ments primarily through bank lines of credit, which were a result of the settlement of the Company's 1984-1986 $351.2 million at December 31,1993, against which I federal income tax returns and the change in the fed. $119.4 million was outstanding, and through a $150 eral income tax rate from 34% to 35% in 1993. These million commercial paper program. No amounts were increases were partially offset by a first-quarter 1993 outstanding at year-end under the commercial paper adjustment of excess deferred federal income taxes, program. The Company believes these sources of short-This adjustment resulted from a change in estimate to term liquidity are adequate. ratably decrease dcferred federal income taxes in accord-During 1993 and 1992, the Company met its capital ance with the tax-rate decrease mandated by the Tax requirements with cash generated through operations. Net Reform Act of 1986. cash provided by operating activities for 1993 was $1.3 1992 vs 199/ billion. For 1994 through 1997, the Company expects that income taxes charged :o operations and to other income all of its capital needs will be provided through intemally decreased in 1992 compared to 1991 primarily due to generated funds. lower pre-tax income and the cost associated with the Construction program expenWtures for 1993 were $575 settlement of the Peach Bottom co-owners' litigation. million and are estimated to be $575 million in 1994 and $1.5 billion for 1995 to 1997. The estimated expenditures other Taxes do not include any amounts for cooling towers at Salem 1993 vs1992 Generating Station (Salem) that may be required for envi-Other taxes increased in 1993 compared to 1992 primarily ronmental reasons. The Company does not presently an-i due to a settlement of the 1990 Pennsylvania Capital Stock ticipate that construction of the Salem cooling towers will Tax and an adjustment of the 1991 Pennsylvania Capital be required; however,if mandated, the estimated cost to Stock Tax in 1992, and an increase in the real estate tax base, the Company would be $230 to $300 million and may 1992 vs 1991 require external sources of financing. Certain facilities Other taxes increased in 1992 compared to 1991 primarily under construction and to be constructed may require per-due to the refunds in 1991 of prior years' real estate tax mits and licenses which the Company has no assurance - over-collections, will be granted. The current level of the Company's capital expendi-Interest charges tures, as a result of the completion ofits nuclear construc-1993 vs 1992 tion program, has improved the Company's financial Interest charges decre tsed in 1993 compued to 1992 pri-condition. Also contributing to this improvement were the marily due to the Company's on-gomg program to refi-effects of the Company's cost-containment program, an nance and redeem higher-interest long-term debt. aggressive bill-collection program and revenues from sales 1992 vs 199/ of capacity and energy to other utilities. Interest charges dec eased in 1992 compared to 1991 Influenced by favorable financial market conditions, the , Wen l l

~.- .-~ 1 i f f PECO Energy Company and Subsidiary Companies l j Company has continued its aggressive refinancing and cient operation of Limerick, to increase future earnings, redemption program. During 1993,$2.1 billion of long-See note 2 of Notes to Consolidated Financial Statements tenn debt and preferred stock were sold to replace debt for a description of the ECA and the terms of the Limerick and preferred stock carrying significantly higher rates Unit No. 2 rate case settlement. of interest and dividends. Also during 1993, the Company - At December 31,1993, the Company had agreements utilized internally generated cash to repay $154 million of with other utilities to sell up to 799 megawatts (mW) of debt and to redeem $45 million of preferred stock. These installed generating capacity and/or associated energy. transactions resulted in a reduction of approximately $49 All of these agreements are either for weekly purchases million in annualized interest and $6 million in annualized of energy only or expire during 1994.The Company ex-preferred stock dividends. The ratios under the Company's pects to renew these agreements or negotiate new agree-mortgage indenture and Articles of Incorporation at ments and to sell over $100 million of capacity and/or December 31,1993 were 4.20 and 2.47 times, respec-energy through such agreements in 1994. The Company's tively, compared with minimum issuance requirements future results of operations are dependent in part on its of 2.00 and 1.50. ability to successfully market its excess generating capac-During 1993, Dividend Reinvestment and Stock Pur-ity and associated energy. chase Plan requirements were satisfied by the purchase of Annual and quarterly operating results can be affected shares of common stock on the open market. Depending by weather, which can have a significant positive or nega-on the Company's specific requirements, the Company tive impact. For example,1993 earnings compared to 1992 will decide whether to issue shares or purchase shares on were favorably impacted by $0.26 per share due to the the open market in the future, summer being one of the hottest in Company history. Con-The Company's capital structure as of December 31, versely, the Company's earnings were negatively impacted 1993 was common equity,42.6Vr; preferred stock,6.19c; by $0.35 per share in 1992 compared to 1991 due to oae of l and long-term debt,51.3?c; compared to its capital struc-the coolest summers ever experienced in the Company's ture as of December 31,1992 of common equity,40.39c; service territory. preferred stock,6.6% ; and long-term debt,53.1% The inflation impacts the Company through increased Company anticipates that its improved financial condition operating costs and increased capital costs for utility will allow it to further strengthen its balance sheet. plant. The Company expects that it would recover any increased operating costs, but in times of high inflation, outlook the Company could be adversely impacted by the regula-The Company's financial condition and its future operating tory lag in reflecting these increased costs in rates. In resuhs are dependent on a number of factors affecting the addition, the replacement costs of the Company's utility Company and the utility industry in general. These factors plant are significantly higher than the historical costs include the regulation and operation of nuclear generating reflected in the financial statements. facilities, increased competition, regulatory and accounting The Company expects its level of capital investment in changes and compliance with environmental regulations, utility plant to remain relatively stable since it has suffi-cient electric generating capacity to meet the anticipated General Business outlook needs of its service territory well into the next decade. The Company's financial condition and future operating Because of the Company's substantial investment in and results are in part dependent on the continued successful reliance on its nuclear generating units, any changes in operation of its nuclear genemting facilities. The Company's regulations by the Nuclear Regulatory Commission (NRC) i nuclear generating facilities represent approximately 44% requiring additional investments or resulting in increased of its installed generating capacity. During 1993, the operating costs of nuclear generating units could adversely Company's nuclear plants operated at a 787c weighted affect the Company. average capacity factor and produced 60% of the Company's The Company's budgeted capital expenditures through j output. Substantial nuclear generation is the most cost-1997 include all costs of compliance with Phase I of the i effective way for the Company to meet customer needs Clean Air Act of 1990 (Clean Air Act), including its share and any commitments for off-system sales. In addition, of the costs of scrubbers being installed at Conemaugh continued operation of the nuclear plants above 60% of Generating Station. As a result of its prior investments in capacity is necessary to avoid penalties under the ECA. scrubbers for Eddystone and Cromby and its investment in Additionally, the terms of the 1991 settlement of the nuclear generating capacity, the Company believes that Limerick Unit No. 2 rate case afford the Company the compliance with the Clean Air Act will have less impact opportunity, through sales to other utilities and the effi-on the Company's electric rates than on the rates of other smeen ~- ,~

l PECO Energy Company and S u b sidia r y Companies f ManamementVihuuien and Analph of Finandalfondith n and Resulla of Operaduns Pennsylvania utilities which are more dependent on coal-competition fired generation. The electric atility industry, in particular power generation to An evaluation of Company sites for potential environ-serve the needs of large users such as municipal customers mental clean-up liability is on-going, including approxi-and for off-system sales, has become increasingly competi-mately 20 sites where manufactured gas plant activities tive. Companies that are able to provide energy at a lower may have resulted in site contamination. Past activities cost are likely to benefit from this competition. Competitors at several sites have resulted in actual site contamination. include co-generators and independent power producers. The Company is presently engaged in performing de-Nonutility generation has resulted, and in the future could tailed evaluations at certain of these sites to define the result, in the loss of revenues from ind astrial customers. nature and extent of the contamination, to determine the These factors will continue to challenge the Company to necessity of remediation and to identify possible remedi-maintain current revenue levels, ation alternatives. As of December 31,1993 and 1992, The National Enetgy Policy Act of 1992 (Energy Act) the Company has accrued $17. and $13 million, respec-encourages competition among utilities and nonutility gen-l tively, of study and remediation costs that currently can erators by allowing access to utility transmission facilities be reasonably estimated. The Company cannot currently for wholesale wheeling. The Energy Act directs the Federal predict whether it will incur other significant liabilities Energy Regulatory Commission (FERC) to set prices for for any additional remediation costs at these or additional wheeling to allow utilities to recover all legitimate, verifi. sites identified by the Company, environmental agencies able and economic costs for providing wheeling services, i or others, including the cost of expanding their transmission facilities SFAS No. I12," Employers' Accounting for Postemploy-to accommodate required transmission access. Retail w heel-ment Benefits," must be adopted by the first quarter of 1994. ing is prohibited under the Energy Act. Re' ail wheeling J The Company cannot currently determine the effect of this would, however, challenge the Company to assure that statement upon the results of operations. it continues to be the provider of service to its large com-The Company would ultimately seek to recover through mercial and industrial customers and that it positions itself l the ratemaking pmcess all capital costs and any increased to take advantage of opportunities to expand its customer j operating costs, including those associated with NRC base by marketing its reliable power sources. i regulation of the Company's nuclear generating stations The Comoany is currently involved in deliberations l and environmental compliance and remediation, although before the Maryland Public Service Commission (MdPSC) such recovery is not assured. and FERC concerning the continued purchase by Cono-wingo Power Company (COPCO), a wholly owned Regulatory Assets subsidiary of the Company, of all of its power from the l At December 31,1993, the Company had deferred on its Company. COPCO's purchases from the Company repre-balance sheet certain regulatory assets for which current sent less than 27e of the Company's annual revenues ' recovery has not yet been approved by the PUC. These Hearings on this matter are to commence in September regulatory assets include $91 million of operating and 1994 and result from a MdPSC order that COPCO per-maintenance expenses, depreciation and accrued carrying form a study of its power supply alternatives, including ( charges on its investment in Limerick Unit No. 2 and 509 competitive bidding. The Company has filed with the of Limerick common facilities, deferred pursuant to a FERC a proposal to add an exit fee for the recovery from Declaratory Order of the PUC; $45 million of costs not COPCO of the stranded investment costs,if the power associated with construction activity related to the adop-supply needs of COPCO are obtair ed from a source other tion of SFAS No.106," Employers' Accounting for than the Company, Postretirement Benefits Other Thun Pev w"; and $107 In September 1993, the Board of Directors of the j million recognized for the effect on c 'xes of the Company approved a plan to reorganize the Company's I change in the statutory federal incore m 7 tom 34% operations to better enable it to meet the challenges of a l to 35% in 1993. See notes 2,6 and 1 L n g : vely, of competitive environment. The Company's operations will - Notes to Consolidated Financial Star a + be divided into five strategic business units by January 1, These and other regulatory assets are deferred pur-1995. The business units will be Consumer Energy Services suant to PUC action. Any deferred costs that are not Group, Bulk Power Enterprises, Power Generation Group, recovered through base rates would be charged against Nuclear Generation Group, and Gas Services Group. The income immediately. The Company has announced its plan calls for each business unit to eventually operate as intention not to seek an electric retail base-rate increase an individual profit center, separate from the other busi-in 1994. ness units. Seventeen

i l t PICoEnergy Company and S u b s idia r y Compannes MTiiH HD5 NUWPNTfMMMfi' A mf9 f1NWif1mM mrIn fHimmfrnN In October,in response to its perception of business risk producer of electricity with a high dependency on its nuclear created by intensifying competition within the electric utility generation. Also, the perceived outlook for the economy of l industry, the Standard & Poor's (S&P) rating agency tight-the Company's service territory and the Northeast in general ened the financial ratic benchmarks it uses to rate electric contributed to this characterization. l utility cornpany debt. This action has affected a significant Moody's investors Service (Moody's) has also an-portion of the investor-owned electric utility industry, nounced that the changing electric utility business environ-l Although the Company's current debt ratings have been ment could, over the next three to five years, lead to bond l affirmed by S&P. the Company's outhiok, along with 47 rating downgrades. Moody's also believes that business other electric utilities, has been changed from " stable" to risk in the electric utility industry is rising due to deregula-l " negative." The Company and 21 other electric utilities have tion and the resulting competition. had their business positions categorized as "below average." For a discussion of other contingencies, see notes 2 and S&P determined the Company's business position to be 3 of Notes to Consolidateu Financial Statements. "below average" because it is considered to be a high-cost I l [lD*TM A fMWiF.M?tfimm 1 i To the Shareholders and Board of Directors PECO Energy Company: We have audited the accompanying consolidated balance sheets of PECO Energy Company and Subsidiary Companies as of December 31,1993 and 1992, and the related consolidated state "ents of income, cae flows, and changes in common shareholders' equity and preferred stock for each of the three years in the period ended December 31,1993. These financial statements are the responsibility of the Companies' management. Our responsibility is to express an opinion on these finan-cial statements 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 w hether the financial statements are free of material misstate-l ment. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial state-ments. An audit also includes assessing the accounting principles used and significant estimates rnade 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 consolidated finan-cial position of PECO Energy Company and Subsidiary Companies as of December 31,1993 and 1992, and the consoli-dated results of their operations and their cash flows for each of the three years in the period ended December 31.1993, in conformity with generally accepted accounting principles. l As discussed in Note 4 of the consolidated financial statements, the Company changed its methods of accounting for non-pension postretirement employee benefits and income taxes in 1993. 2400 Eleven Penn Center j Philadelphia, Pennsylvania Y j January 31,1994 l e y ee

PECO Energy Company and S u b sidia ry Companies Ce:Midated Statemestin of Identte-Eor the Years EndrJ Den ember 31 lThousands of Dollars 1 Operating Revenues 1993 1992 1991 Electric $ 3,605,425 $ 3,597,141 $ 3,662,573 Gas 382,704 365,328 356,013 Total Operating Revenues 3,988,129 3,962,469 4,018,586 Operating Expenses Fuel and Energy Interchange 659,580 709,115 778,674 Other Operating 851,254 906,346 842,375 Maintenance 364,409 353,502 332,269 Depreciation 424,952 413,779 400,572 Income Taxes 354,391 264,483 308,945 Other Taxes 298,132 281,868 j _ 274,561 Total Operating Expenses 2,952,718 2,929,093 2,937,396 Operating income 1,035,411 1,033,376 1,081,190 Other income and Deductions Allowance for Other Funds Used During Construction i1,885 10,461 10,619 Settlement of Peach Bottom Litigation (103,078) Income Taxes (l1,808) 40,I60 (16,442) Other, Net i1,980 3,392 28,696 Total Other income and Deductions 12,057 (49,065) 22,873 income Before interest Charges _ l.047,468 _ 984,31l_ ..__ 1,104,063 Interest Charges Long-Term Debt 432,707 484,153 545,488 Short-Term Debt 36,002, 31,419 36,36() _ Totallnterest Charges 468,709 515.572 581,848 Allowance for Borrowed Funds Used During Construction (11,889) (10,202) (12,465_) Net interest Charges 456,820 505,370. 569,383 Net income 590,648 478,941 } 534,680 Preferred Stock Dividends 49,058 60,731 l 66,104 Earnings Applicable to Common stock 541,590 418,210j $ 468,576 _ 220.245 ]1 Average Shares of Common Stock Outstanding (Thousands) 221,072 1 218.234 Earnings Per Average Common Shore (Dollars) 2.45 1.90 2.15 Dividends Per Common Shore (Dollars) 1,43 1,325 l.225 A 2 Ser %tes ro ConschJared Iinam ial Statements. l l l l nineteen

[ l PECO Energy C o m p a rt y and Subsidiary Co mpa nie s i Assets December 31, (Thousands ofDollars) 19V3 1992 Utility Plant, at Original Cost Electric $ 13,102,088 $ 12,797,389 Gas 843,205 781,708 Common 203,747 162,061 14,149,040 13,741,158 Less Accumulated Provision for Depreciation 3.946.805 3,587,317 10,132,235 10,153.841 Nuclear Fuel, Net 179,529 188,609 Construction Work in Progress 381,247 348,792 Leased Property, Net 194.702 209,994 Net Utility Plant 10,957,713 10,901,236 Current Assets Cash and Temporary Cash Investments 46,923 50,369 Accounts Receivable Net Customers 122,581 138,880 i -: Other -47.768 62,571 Inventories, at Average Cost Fossil Fuel 67,040 63,688 Materials and Supplies 142,132 156,706 Deferred Income Taxes 30,185 39,285 Other 58,205 38,466 TotalCurrent Assets 514,834 549,965 Deferred Deb 6ts and Other Assets Recoverable Deferred Income Taxes 2,297,368 Deferred Limerick Costs 433.605 455,161 Deferred Non-Pension Postretirement Benefit Costs 44,691 Investments 218.636 202,422 Loss on Reacquired Debt 343,004 273,120 Other 222,476 196,323 Total Deferred Debits and Other Assets 3,559,780 1,127,026 Total } 15,032,327 $ 12,578,227 See Notes to Conwledated Finuncial Statements twenty

.= PECO l'nergy Company and Subsidiary C o m p a nie s CanySdated Balance Sheets 1 Capitalisation and Liabilities December 31. (Thousands of Dollarsk I993 1992 Capitalisation Common Shareholders' Equity Common Stock $ 3,483,477 5 3,459,131 Other Paid-In Capital 1,214 1,214 Retained Eamings 773,727 561,824 4,263,418 4,022,169 Preferred and Preference Stock Without Mandatory Redemption 422,472 422,472 With Mandatory Redemption 186,500 231,130 j Long-Term Debt 4,884,343 _ 5,203,961 Total Capitalization 9,756,733 9,879,732 i Current Liabilities Notes Payable, Bank i19,350 110,500 Long-Term Debt Due Within One Year 252,263 98,998 Capital Lease Obligations Due Within One Year 60,500 58,998 l Accounts Payable 242,239 241,462 l-Taxes Accrued 24,939 24,334 Deferred Energy Costs 48,691 72,999 Interest Accrued 97,540 115,923 Dividends Payable 18.345 19,459 j Other 90 710 87,887 Total Current Llobilities 95f577 830j60 7 i Deferred Credsts and Other Liabilities Capital Lease Obligations 134,202 150,996 Deferred Income Taxes 3,386,136 1,001,939 Unamortized Investment Tax Credits 386,162 302,508 Pension Obligation for Early Retirement Plan 135,286 141,675 Non-Pension Postretirement Benefits Obligation 51,781 Other 227 450 270,817 ; Total Deferred Credits and Other Liabihties 4,321/ 17 1 867,935 1 Comenitments and Contingencies (Notes 2 and 3) Total $ 15,032,327, $_12J78,227 See Notes to C<msoludated F nam ial Srarements l l twer:tysne i

,. - ~. l' T k PECO Energy Company and Subsidiary C o m p a n'i e s Connalidated Ntatemeatn of Cash Flows. ,i } (Thousands of Dollars) Cash Flows From Operating Activities 1993 '1992 1991 Net income 590,648 478,941 534,680 Adjustments to Reconcile Net income to Net Cash Provided by Operating Activities: Depreciation and Amortization 507.069 491,186 499,675 Deferred Income Taxes 139,846 81,943 77,836 Unrecovered Phase-In Plan Revenue 142,267 96,705 Deferred Energy Costs (24,308) 52,959 16,593 3 Sale of Accounts Receivable 125,000 Amortization of Leased Property 58,400 54,600 59,400 9 Changes in Working Capital: j Accounts Receivable 31,102 82,151 (70,907) Inventories 11,222 1,395 (26,926) } Accounts Payable 777 (47,403) 36,326 i Other Current Assets and Liabilities (34,694) (136,627) 54,633 Other items Affecting Operations (18,287) (28,569) 20,073, 4 Net Cash Flows Provided by Operating Activities 1.261,775 1,172,843 1,423,088 Cash Flows From Investing Activities investment in Plant (568,076) (571,829) (473,448) Increase in Other investments 116,2141 (32,769) (43,827) Net Cash Flows Used by Investing Activities (584,290) (604.598) (517,275) Cash Flows From Financing Activities Change in Short-Term Debt 8,850 .I10,500 (68,500) Issuance of Common Stock 29,346 12,465 66,453 issuance of Preferred Stock 142,700 140,000 Retirement of Preferred Stock (187,330) (224,462) (15,330) Issuance of Long-Term Debt 1,994,765 1,369,540 278,000 Retirement of Long-Term Debt (2,148,963) (1,504,877) (692,867) Loss on Reacquired Debt (69,884) (85,380) (58,419) Dividends on Preferred and Common Stock (366,081) (349,856) (333.319) Change in Dividends Payable (1,114) (16,607) 8,575 Expenses of issuing Long-Term Debt and Preferred Stock (24,820) (11,660) (68) Capital Lease Payments (58,400)q (54,600) (59,400) Net Cash Flows from Financing Activities (680,931) (614,937) (874,875) (Decrease) Increase in Cash and Cash Equivalents t3,446) (46,692) 30,938 Cash and Cash Equivalents at beginning of period 50,369 97,061 66,123-Cash and Cash Equivalents at end of period 46,923 50,369 _97,061 Ser kres to Conwlidated Finam ial Statements. twenty-two m.

h PECO Energy Company and S u b sidia r y Compa nies Other Common Stock Paid-In Retained Preferred Stock (All Anmuntiin Thou3 ands, Shares Amount Capital Earnings Shares Amount Balance, January 1,1991 216,953 $3,380.213 1,214 $ 243,106 7,534 5 753,394 l ) Net income 534,680 Cash Dividends Declared Preferred Stock (at specified annual rates) (65,966) Common Stock ($1.225 per share) (267,353) Expenses of Capital Stock Actisity (68) I I Issuance of Sto,;k Dividend Reinvestment and Stock Purchase Plan 2,925 l 63.207 l Long-Term incentive Plan 152 i 3,246 I Redemptions j_ (153). (15,330)' 220,030 l 3,446,666 Balance, December 31,1991 1,214 441,399 7.381 738,064 l Net Income l 478,94i Cash Dividends Declared j Preferred Stock j i (at specified annual rates) l (58,021) Common Stock ($1,325 per share) { (291,835) Expenses of Capital Stock Activity (11,660) I f issuance of Stock 1 Long. Term incentise Plan 504l 12,465 Issuances 1,400 140,000 Redemptions j (2,245)_ (224,462) Balance, December 31,1992 220,534 3,459,131 1.214 561,824 6,536 653,602 l Net income l F90,648 Cash Disidends Declared l Preferred Stock (at specified annual rates) (49,919) Common Stock l ($1.43 per share) (316,162) Espenses of Capital Stock Actisity (5,625) i Issuance of Stock 1,ong Term Incentise Plan 982 29,346 (7,039) Issuances 1,427 '142,700 Redemptions _j_ (1,873) (187,330) llalance, December 31,1993 221,516 $3,488,4_77j ' 1,214 $_773/127_ 6,090 $ 608,972 See Notes to Consultdated Fmancial Statements twenty-three i ,.n, ..-.n

.~. PECoEnergy Company and S u b sidiar y C o m p a n le s Note < so Consstidated finaswiel Statements

f. significant Accounting Polfcles Peach Bottom Atomic Power Station (Peach Bottom) and General Salem Generating Station (Salem) is accounted for as a The consolidated financial statements of PECO Energy capital lease. Nuclear fuel at Limerick is owned.

Company (Company), formerly known as Philadelphia Electric Company, include the accounts of its utility sub-Depreciation and Decomminioning sidiary companies, all of which are wholly owned. Non-The annual provision for depreciation is provided over the utility subsidiaries are not material and are accounted for estimated service lives of plant on the straight-line method. on the equity method. Accounting policies are in accord-Annual depreciation pres isions for financial reporting ance with those prescribed by the regulatory authorities purposes, expressed as a percent of average depreciable having jurisdiction, principally the Pennsylvania Public utility plant in service, were approximately 2.75% in 1993 Utility Commission (PUC) and the Federal Energy Regu-and 1992 and 2.74% in 1991. latory Commission (FERC). The Company's share of the estimated costs for de-commissioning nuclear gerierating stations currently is Revenues being charged to operations over the expected service Customers' meters are read and bills are prepared on a life of the related plant. The amounts recovered from cycle basis. At the end of each month, the Company customers are deposited in escrow and trust accounts accrues an estimate for the unbilled amount of energy and invested for funding of future costs, and credited to delivered to customers. accumulated depreciation (see note 3). Pursuant to a phase-in plan approved by the PUC in its electric base-rate order dated April 19,1990, the Com-Income rans pany recorded revenue equal to the full amount of the In 1993, the Company adopted Statement of Financial rate increase approved, based on kilowatthours rendered Accounting Standards (SFAS) No,109," Accounting for to customers. On April 5,1991, that plan was amended Income Taxes," which requires an asset and liability ap-by the PUC as part of the settlement of all appeals arising proach for financial accounting and reporting of income from the Limerick Generating Station (Limerick) Unit taxes. In addition, the effects of the Alternative Minimum No. 2 rate proceer'.ing to permit recovery of the remaining Tax (AMT) are normalized. Investment Tax Credit (ITC) unrecovered revenue by December 31,1992 (see note 2). is deferred and amortized to income over the estimated As of December 31,1993 and 1992,the Company had no useful lives of the related utility plant. ITC related to plant unrecovered phase-in plan revenue. in service, not included in rate base, is accounted for on the flow-through method. fuel and Energy Cast Adjustment Clauses The Company's classes of service are subject to fuel ad-Allowance for funds Used During Construction (AFUDC) justment clauses designed to recover or refund the differ-AFUDC is the cost, during the period of construction, of ences between actual costs of fuel, energy interchange, and debt and equity funds used to finance construction pro-purchased power and gas, and the amounts of such costs jects. AFUDC is recorded as a charge to Construction included in base rates. Differences between the amounts Work in Progress, and the credits are to Interest Charges billed to customers and the actual costs recoverable are for the pre-tax cost of borrowed funds and to Other in-deferred and recovered or refunded in future periods by come and Deductions for the remainder as the allowance means of prospective adjustments to rates. Generally, for other funds. The rates used for capitalizing AFUDC, such rates are adjusted every twelve months. In addition which averaged 9.39% in 1993,10.61% in 1992 and to reconciling fuel costs and revenues, the Company's 10.88% in 1991, are computed under a method prescribed Energy Cost Adjustment (ECA), established by the PUC, by the regulatory authorities. AFUDC is not included in incorporates a nuclear performance standard which allows regular taxable income and the depreciation of capitalized for financial bonuses or penalties depending upon whether AFUDC is not w deductible. the Company's system nuclear capacity factor exceeds or falls below a specified range (see note 2). Nuclear Outage Cus Incremental nuclear maintenance and refueling outage Nuclear fuel costs are accrued over the unit operating cycle. For each Nuclear fuel is capitalized and charged to fuel expense on unit, an accrual for incremental nuclear maintenance and the unit of production method. Estimated costs of nuclear refueling outage expense is estimated based upon the fuel disposal are charged to fuel expense as the related latest planned outage schedule and estimated costs for fuel is consumed. The Company's share of nuclear fuel at the outage. Differences between the accrued and actual twemy-four

_ ___. _ = _ PECoEnergy Company and .% u b s s d i a r y Companies l SFAS No.106 through the ratemaking process. While non-The Company's operations have in the past and may in pension postretirement benefits costs traditionally have the future require substantial capital expenditures in order been allowed for ratemaking on a pay-as90u-go basis, to comply with environmental laws. The Company expects recovery of the deferred costs through the ratemaking that any capital expenditures to construct facilities for com-process is not assured. pliance with environmental laws and the operating costs of such facilities would be recoverable through the rate-umerick tdnit No. 2 Declaratory order making process, although such recovery is not assured. Pursuant to a Declaratory Order of the PUC, the Company deterred the operating and maintenance expenses, depre-Nuclear insurance ciation and accrued carrying charges on its capital invest-The Price-Anderson Act, as amended (Price-Anderson ment in Limerick Unit No. 2 and 50% of Limerick common Act), sets the limit ofliability of approximately $9.4 billion facilities during the period from January 8,1990, the com-for claims that coul 1 arise from an incident involving any merciai operation date of Limerick Unit No. 2, until April licensed nuclear facility in the natia. The limit is subject 20,1990, the effective date of the Limerick Unit No. 2 rate to increase to reflect the effects of in0ation and changes in order. At December 31,1993 and 1992, such costs included the number of licensed reactors. All utilities with nuclear in Deferred Limerick Costs totalled $91 million. Recovery generating units, including the Company, have obtained of such costs deferred pursuant to the Declaratory Order will coverage for these potential claims through a combination be addressed by the PUC in a subsequent electric base-rate of private insurances of $200 million and mandatory par-case, although such recovery is not assured. Any amounts ticipation in a financial protection pool. Under the Price-not recovered would be charged against income. Anderson Act, all nuclear reactor licensees can be assessed up to $76 million per reactor per incident, payable at $10 Energy Cost Adjustment million per reactor per incident per year. This assessment The Company is subject to a PUC-established electric ECA is subject to inflation, state premium taxes and an addi-which,in addition to reconciling fuel costs and revenues, tional surcharge of 5% if the total amount of claims and incorporates a nuclear perfonnance standard which allows legal costs exceeds the basic assessment. for financial bonuses or penalties depen < ling on whether if the damages from an incident at a licensed nuclear the Company's system nuclear capacity factor exceeds or facility exceed $9.4 billion, the President of the United ) falls below a specified range. The bonuses or penalties are States is to submit to Congress a plan for providing addi- ) based upon average system replacement energy costs. If tional compensation to the injured parties. Congress could l the capacity factor is within the range of 60-709, there is impose further resenue-raising measures on the nuclear i no bonus or penalty. If the capacity factor exceeds the industry to pay claims. The Price Anderson Act and the specified range, progressive incremental bonuses are extensive regulation of nuclear safety by the Nuclear i earned and, if the capacity factor falls below the specified Regulatory Commission (NRC) do not preempt claims range, progressive incremental penalties are incurred. under state law for personal, property or punitive damages For the years ended December 31,1993,1992 and 1991, related to radiation hazards, the Company's nuclear capacity factors were 78%,71% and The Company maintains property insurance, including 75%, respectively. This entitled the Company to bonuses decontamination expense coverage and premature decom-reflected in 1993,1992 and 1991 income of $10, $1 and missioning coverage, for loss or damage to its nuclear l $5 million, respectively. .acilities. Although it is not possible to determine the total amount of the loss that may result from an occurrence at

3. commitments and conungendes these facilities the Company maintains its $2.75 billion construcuan Expenditures proportionate share for each station. Under the terms of -

Construction expenditures are estimated to be $575 million the various insurance agreements, the Company could be for 1994 and $1.5 billion for 1995-1997, For 1994-1997, assessed up to $35 million for losses incurred at any plant the Company expects that all of its capital needs will be insured by the insurance companies. The Company is self-provided through internally generated funJs. These con-insured to the extent that any losses may exceed the struction expenditure estimates are reviewed and revised amount ofinsurance maintained. Any such losses,if not periodically to reflect changes in economic conditions, re-recovered through the ratemaking proces.. could have a vised load forecasts and other appropriate factors. Certain material adverse effect on the Company's financial condition. facilities under construction and to be constructed may The Company is a member of an industry mutual insur-l require permits and licenses which the Company has no ance company which provides replacement power cost assurance will be granted, insurance in the event of a major outage at a nuclear toevsa l . - - -. - - - - - - - - - - ~ ~ - ~. -. - - - - - -- - -~ ~ -.- - ---- - ~ ~~~~d

3 f PECo Energy Company and Subsidiary Companies Note to Cosuso% dated Hnatwiul Mtatepwste expense for the outage are recorded when such differ-benefit from the sale of up to 399 mW of capacity and/or ences are known. associated energy and the retained Limerick energy savings is limited to $106 million per year a ith any excess accruing Capitalized Software Costs to customers. Beginning in 1995, in addition to retaining the Software projects which exceed $5 million are capitalized. first $106 million, the Company will share in any excess At December 31,1993 and 1992, capitalized software above $106 million with the Company's share of the excess costs totalled $56 million and $40 million (net of $3 mil-being 10% in 1995,20% in 1996 and 30% in 1997 and lion and $1 million accumulated amortization), respec-thereafter. During 1993,1992 and 1991, the Company tively. Such capitalized amounts are amortized ratably recorded as revenue net of fuel costs $38, $34 and $25 mil-over the expected lives of the projects when they become lion, respectively, as a result of the sale of the 399 mW of operational, not to exceed 10 years. capacity and/or associated energy. As a part of the settlement, the Company agreed not to Gains and Losses on Reacquired Debt file an electric base-rate increase before April 1,1994, Gains and losses on reacquired debt are deferred and except as allowed by the PUC or for emergency or single-amortized to interest expense over the period approved for issue rate filings to recover costs associated with new legis-ratemaking purposes. lation or regulations. SFAS No. II2 Single-Issue Electrk Bose-Rate increass filed SFAS No. I12. " Employers' Accounting for Postemploy-On September 11,1992, the Company filed with the PUC ment Benefits," must be adopted by the first quarter of a request for a 1.5% electric case-rue increase designed to 1994. The Company cannot currently determine the effect recover the increased cos;s associated with the implemen-of this statement upon the results of operations. tation of SFAS No.106." Employers' Accounting for Post-retirement Benefits Other Than Pensions." See notes 4 Reclassifications and 6. Certain prior-year amounts have been reclassified for On March 25,1993, the PUC issued a policy statement comparative purposes. These reclassifications had no for implementation of SFAS No.106 which states that the effect on net income. PUC " intends to move all jurisdictional utilities to SFAS No.106 accrual accounting for ratemaking purposes with-

2. Rate Matters in approximately five years and to allow the recovery m Lirnerick Unit No. 2 Electrk Rate Order base rates of all deferreJ amounts in approximately 20 years As part of the April 19,1990 PUC urder, the PUC ap-to the extent that costs are prudently incurred and exam-proved recovery of $285 million of deferred Limerick ined in a base-rate proceeding prior to rate recognition."

i costs representing carrying charges and depreciation asso-On September 2,1993, the PUC issued an order deny-ciated with 50% of Limc rick common facilities. These ing the Company current recovery of these costs, stating costs are included in base rates and are being recovered that the settlement of all appeals arising from the PUC's over the life of Limerick. The PUC also approved recovery 1990 Limerick Unit No. 2 order precluded the Company of $137 million of Limerick Unit No. I costs which had from seeking an increase in electric base rctes for these previously been deferred pursuant to a Declaratory Order costs before April 1,1994. The September 2,1993 order dated September 28,1984. These costs are being recovered authorized the Company to defer the additional SFAS No. over a ten-year period without a return on investment. 106 expense as a regulatory asset in accordance with the On April 5,1991, the PUC approved the settlement of PUC policy statement. On September 30,1093, the Com-all appeals arising from the Limerick Unit No. 2 rate order. pany filed with the Commonwealth Court of Pennsylvania Under the terms of the settlement, the Company is allowed a petition for review of the PUC's final order, to retain for shareholders any proceeds above the average Recovery through rates of the Company's SFAS No. energy cost for sales of up to 399 megawatts (mW) of capac-106 transition obligation of $505 million and amounts ity and/or associated energy, since the PUC had ruled that the deferred pursuant to the PUC's September 2,1993 Order Company had 399 mW of near-term excess capacity in the will be permitted only if included in a general base-rate Limerick Unit No. 2 rate order. Beginning on April 1,1994, case within approximately five years and deemed pru-the settle ent provides for the Company to share in the dently incurred. The Company's future earnings will be benefits which result from the operation of both Limerick adversely affected to the extent that the Company is not Unit No. I and Unit No. 2 through the retention of 16.5% of ultimately permitted to recover the additional non-pension the energy savings. Through 1994, the Company's potential postretirement benefits costs resulting from the adoption of twenty %t .-----, -+- +

PECO Energy Company and Subsideury Campanies %elt5 to Cosmolidated FistancialSistestgestin I l l l station. The premium for this coverage is subject to an liability and a related regulatory asset, which at December l assessment for adverse loss experience. The Company's 31,1993 and 1992 was $69 and $96 million, respectively. l maumum share of any assessment is $17 million per year. The Company is currently recovering in rates costs for l nuclear decommissioning and decontamination and spent l Nuclear Decommissioning and 5 pent fuel 5torege fuel storage. The Company believes that the ultimate costs In conjunction with the PUC's April 19,1990 electric base-of decommissioning and decontamination, spent fuel dis-l rate order, the PUC recognized a revised decommissioning posal and any assessment under the Energy Act will con-cost estimate based upon total cost. The Company's share tinue to be recoverable through rates, although such of this revised cost is $643 million expressed in 1990 dol-recovery is not assured. i lars, which the Company believes would be substantially unchanged at December 31,1993. Environmental lieues Under a contract with the U.S. Department of Energy Under federal and state environmental law s, the Company (DOE), the DOE is obligated ultimately to take possession is generally liable for the costs of remediating environ-of all spent nuclear fuel generated by the Company's mental contamination of property now or formerly owned nuclear units for long-term storage by no later than 1998. by the Company and of property contaminated by hazard. The contract curremly requires that a spent fuel disposal ous waste generated by the Company. The Company owns fee of one mill (5.001) per net kilowatthour generated be or leases a substantial number of real estate parcels, in. paid to the DOE. The fee may be adjusted prospectively in cluding parcels on which its operations or the operations of order to ensure full cost recovery. others may have resulted in contamination by substances The DOE has stated that it will not be able to open a which are considered hazardous under the environmental permanent, high level nuclear waste storage facility until laws. The Company is currently involved in a number of 2010, at the earliest. The DOE stated that the delay was a proceedings relating to sites where hazardous waste has result ofits seeking new data about the suitability of the been deposited and may be subject to additional proceed-proposed storage facility site at Yucca Mountain, Nevada, ings in the future. An evaluation of Company sites for opposition to this location for the repository and the potential environmental clean-up liability is on-going, DOE's revision of its civilian nuclear waste program. The including approximately 20 sites where manufactured gas DOE stated that it would seek legislation from Congress plant activities may have resulted in site contamination. for the construction of a temporary storage facility which Past activities at several sites have resulted in actual site would accept spent nuclear fuel from utilities in 1998 or contamination. The Company is presently engaged in soon thereafter Although progress is being made at Yucca performing detailed evaluations at certain of these sites l Mountain and several communities have expressed interest to define the nature and extent of the contamination, to in providing a temporary storage site, the Company cannot determine the necessity of remediation and to identify l predict when the temporary and permanent federal storage possible remediation alternatives. As of December 31, facilities will become available. 1993 and 1992, the Company had accrued $17 and $13 Peach Bottom and Limerick have on-site storage facili-million, respectively, for various investigation and remedi-ties with the capacity to store spent fuel discharged f rom ation costs that currently can be reasonably estimated. The the units through the late 1990's and, by further modifying Company cannot currently predict whether it will incur spent fuel storage facilities, capacity could be provided other significant liabilities for additional investigation and until approximately 2010. Salem has spent fuel storage remediation costs at these or additional sites identified - capacity through 1998 for Unit No. I and 2002 for Unit by the Company, environmental agencies or others, or No. 2. Public Service Electric and Gas (PSE&G) is plan. whether any such costs will be recoverable through rates ning expansion of the fuel storage capacity of Salem. or from third parties. The National Energy Policy Act of 1992 (Energy Act) provides, among other things that utilities with nuclear othe ungation reactors must pay for the decommissioning and decontami-On April 11,1991,33 former employees of the Company nation of the DOE nuclear fuel enrichment facilities. The filed an amended class action suit against the Company in total costs are estimated to be $150 million per year for the United States District Court for the Eastern District of 15 years, of which the Company's share was estimated at Pennsylvania (Eastem District Court) on behalf of ap-December 31,1992 to be $6 million per year, subsequently _ proximately 141 persons who retired from the Cumluny revised to $5 million in September 1993. The Energy Act between January and April 1990. The lawsuit, filed under provides that these costs are to be recoverable in the same the Employee Retirement Income Security Act (ERIS A), manner as other fuel costs. The Company has recorded the alleges that the Company fraudulently and/or negligently wentneven ,-r,- ,,.. - - - -,,.. ~, - -. - .,nn w- ,mw,,,en ,+v ..nmnr,w

T PECO Energy Company and Subsidiary Companies I MIEEEIEEE e i I misrepresented or concealed facts concerning the Com-ages and the awarding to the plaintiffs of the costs and pany's 1990 Early Retirement Plan and thus induced the disbursements of the action, including attorneys' fees, plaintiffs to retire or not to defer retirement immediately Any monetary damages which may be recovered, net of before the initiation of the Early Retirement Plan, thereby expenses, would be paid to the Company because the law-depriving the plaintiffs of substantial pension and salary suit is brought derivatively by shareholders on behalf of benefits. On June 6,1991, the plaintiffs filed amended the Company. complaints adding additional plaintiffs. The lawsuit names The Company is involved in various other litigation the Company, the Company's Service Annuity Plan (SAP) matters, the ultimate outcomes of which, while uncertain, and two Company officers as defendants. The plaintiffs are not expected to have a material adverse effect on the seek approximately $20 million in damages representing, Company's financial condition; however, they could have among other things, increased pension benefits and nine a material effect on quarterly operating results when re-months' salary pursuant to the terms of the Early Retire-solved in a future period. ment Plan, as well as punitive damages. The ultimate outcome of this matter is not expected to have a material

4. Changes in Accountmg adverse effect on the Company's financial condition.

Effective January 1,1993, the Company adopted SFAS On May 2,1991,37 fonner employees of the Company No.106," Employers' Accounting for Postretirement Ben-filed an amended class action suit against the Company, efits Other Than Pensions," which requires the recognition the SAP and three former Company officers in the Eastern of the expected costs of the benefits during the years em-District Court, on behalf of 147 former employees who ployees render service, but not later than the date eligible retired from the Company from January through June for retirement using the prescribed accrual method. For 1987. The lawsuit was filed under ERISA and concerns the 1992 and prior, the Company recognized these costs on a August 1,1987 amendment to the S AP. The plaintiffs pay-as-you go basis.The Company is currently recovering claim that the Company concealed or misrepresented the in base rates the pay-as-you-go costs Adoption of SFAS fact that the amendment to the S AP was planned to increase No.106 resulted in a transition obligation of $505 million, retirement benefits and, as a consequence, they retired which is being amortized on a straight line basis over 20 prior to the amendment to the SAP and were deprived of years. Adoption of SFAS No.106 had no impact on the significant retirement benefits. The complaint does not Company's results of operations as the Company is defer-specify any dollar amount of damages. The ultimate out-ring these increased costs (see note 6). come of this matter is not expected to have a material Effective January 1,1993, the Company adopted SFAS adverse effect on the Company's financial condition. No.109," Accounting for Income Taxes," which requires an On May 25,1993, the Company received a letter from asset and liability approach for financial accounting and attorneys on behalf of a shareholder demanding that the reporting for income taxes utilizing the cumulative method Company's Board of Directors commence legal action of adoption. As a result, the Company recognized a charge against certain Company officers and directors with re-of $3 million or 50.02 per share during 1993. The Com-spect to the Company's credit and collections practices. pany has also recorded an additional accumulated deferred The basis of the demand is the findings and conclusions income tax liability along with a corresponding recoverable contained in the Credit and Collection section of the May deferred income tax asset of $2.3 billion at December 31, 1991 PUC Management Audit Repott prepared by Ernst & 1993 (see note 12). Young. At its June 28,1993 meeting, the Board of Direc-tors appointed a special committee of directors to consider

5. Hetirement sencras whether such legal action is in the best interest of the The Company and its subsidiaries have non-contributory Company and its shareholders.

trusteed retirement plans applicable to all regular employ-On July 26,1993, attorneys on behalf of Iwo sharehold-ecs. The benefits are based primarily upon employees' ers reinstituted a shareholder derivative action against years of service and average carnings prior to retirement. several of the Company's present and former officers alleg. The Company's funding policy is to contribute, at a mini-ing mismanagement, waste of corporate assets and breach mum, amounts sufficient to meet ERISA requirements. of fiduciary duty in connection with the Company's credit Approximately 71%,78% and 79% of pension costs were and collections practices. This action is also based on the charged to operations in 1993,1992 and 1991, respec-findings and conclusions contained in the Credit and tively, and the remainder, associated with construction Collections section of the May 1991 PUC Management labct, to the cost of new utility plant. Audit Report prepared by Ernst & Young. The plaintiffs seek, among other things, an unspecified amount of dam-twentpeight

.~ -.. - - ._.. - -. -.., - ~-... -.. . _ ~ - ~~~. -.. - ~,., - - PEcoEnergy Company and Subsidiary Companies Notes to ('on$nlidated Iinanda1 Statements Pension costs for 1993,1992 and 1991 included the (Thousunds of oottaro ~ 1993 1992 following components: Actuarial present value of accumulated plan (Thousands of noitars 1993 1992 1991 benefit obligations: Service cost - benefits i Vested benefit obligations $(1,482,868) $(1,315,292) earned during Accumulated benefit j the period S 33,673 $ 30,191 $ 23,092 obligation (1,600,768) (1,410y7) Interest cost on Projected benefit obligation I projected benefit for services rendered obligations 134,658 129,000 121,826 to date $(1,972,332) S(l,740,013) j Actual return on Plan assets at fair value 1,844,281 1,709,802 plan assets (226,240) (122,869) (345,677) Funded status 7 128.051) (30,211) Amortization of Unrecognized transition transition asset 14,538) (4,539) (4,539) asset (53,865) (58,402) Amortization and Unrecognized prior service deferral 87,733 (5,741) 227,038 costs 95.728 101,955 Net pension cost $ 25,286 $ 26,042 $ 22,340 Unrecognized net gain (77,245) (183,820) i Pension liability $ (163,433) $_(1,70.478 ) .) The changes in net periodic pension costs in 1993,1992 and 1991 were as follows: l

6. Non-Pension Postretirernent Benefits (Thousands ofoottarn 1993 1992 1991 The Company provides certain health care and life insur-Change in number, char, ance benefits for retired employees. Company employees acteristics and salary will become eligible for these benefits if they retire from j

levels of partic, the Company with ten years of service. These benefits and pants and net similar benefits for active employees are provided by an actuarial gain (756) $ (840) $ 3,402 insurance company whose premiums are based upon the Change in plan benefits paid during the year. In the past, the Company has provisions 1,978 recognized the cost of providing these benefits by charging Change in actuarial the annual insurance premiums to expense. assumptions 4,542 4,754 The transition obligation resulting from the adoption of I " "I " ""'Y Net change (756) $ 3,702 l $10,134 which represents the previously unrecognized accumulated non-pension postretirement benefit obligation. The transi-l Plan assets consist principally of common stock, U.S. tion obligation is being amortized on a straight line basis government obligations and other fixed income instru. over an allowed 20-year period. The annual accrual for ments. In determining pension costs, the assumed long-non-pension postretirement benefits costs (including amor-term rate of return on assets was 9.50% for 1993,1992 tization of the transition obligation)is $83 million. The and 1991. Company's comparable pay-as you-go costs for these The weighted-average discount rate used in determin-benefits, which are currently being recovered in base rates, ing the actuarial present value of the projected benefit were $31 million in 1993. On September 11,1992,the obligation was 7% at December 31,1993 and 7.75% at Company filed with the PUC a request for a 1.5% electric December 31,1992 and 1991. The average rate of increase base-rate increase designed to recover the costs associated in future compensation levels ranged from 4% to 6% at with the implementation of SFAS No.106 (see note 2). December 31,1993 and ranged from 4.5% to 6.5% at The transition obligation was determined by applica-December 31,1992 and 1991, tion of the terms of medical, dental and life insurance Prior service cost is amortized on a straight-line basis plans, including the effects of established maximums over the average remaining service period of employees on covered costs, together with relevant actuarial assump-expected to receive benefits under the plan. The funded tions and health care cost trend rates, which are projected status of the plan at December 31,1993 and 1992 is sum-to range from 12% in 1993 to 5% in 2002. The effect of marized as follows: a 1% annual increase in these assumed cost trend rates twenty.nnne ,.. - -.. -, _.. _ -....... - -.-,-.-,--,.,..,-.i-, ,,,-i

PEcoInergy Company and SubstJiary Compannes Notes. Consolidated Financial Statements would increase the accumulated postretirement benefit this agreement. The Company retains the servicing re-pon-obligation by $50 million and the annual service and sibility for these receivables. interest costs by $8 million. By terms of this agreement, under certain circum-Total costs for all plans amounted to $83, $17 and $15 stances, a portion of deferred Limerick costs may be in-million in 1993,1992 and 1991, respectively, for 6.000 cluded in the pool of eligible receiv bles. At December 31, i retirees during 1993,1992 and 1991 and for 9,723 active 1993, $43 million of deferred Limerick costs were in-employees during 1993. The cost was higher in 1993 than cluded in the pool of eligible receivables. in 1992 primarily due to the adoption of SFAS No.106. The net periodic benefits costs for 1993 included the

s. common stock following components:

At December 31,1993 and 1992, common stock without (Thousands vf Dollars) par value consisted of 500,000,000 shares authorized and Service cost - benefits camed during the period $15,615 ' 221.516.299 and 220,534.048 shares outstanding, respec-Interest cost on projected benefit obligations 41,70g tively. At December 31,1993, there were 4,800,000 shares Amortization of the transition obligation 25,251 reserved for issuance under stock purchase plans. Actual return on plan assets The Company maintains a Long-Term Incentive Plan i Amortization and deferral (LTIP) for certain full-time salaried employees of the Comp ny.The types of long-term incentive awards which - Net periodic postretirement benefits costs $82,574 may be granted under the LTIP are non-qualified options to purchase shares of the Company's common stock, divi-The funded status of the plan at December 31,1993 is dend equivalents and shares of restricted common stock. summarized as follows: Pursuant to the LTIP, 1,961,882 shares of stock were (Thomunsi of Dollars) authorized for issuance upon exercise of options at Accumulated postretirement benefit December 31,1993. obligation: The following table summarizes option activity during Retirees $ 476,059 1993,1992 and 1991: Fully eligible active plan participants 39,367 Other active plan participants 79,808 1993 1992 1991 Total 595,234 Balance at Plan assets at fair value January 1 2,445,833 1,656,244 1,126.675 Accumulated postretirement benefit obligation Options granted 533,800 1,380.000 1,018.500 in excess of plan assets 595,234 Options exercised (981,551) (504.41l) (151,996) Unrecognized transition obligation (479,778) Options cancelled (36,200) (86,000)_ 1336,935)_ Unrecognized net gain -(63,675) Balance at Accrued postretirement benefits cost 1 December 31 1,9f61 dh2 2,445,833 lh56J44_ recognized on the balance sheet $ 51,781 ! i Exercisable at December 31 1.,4982_1,162,833_] 800,744y Measurement of the accumulated postretirement benefits obligation was based on a 7.25% assumed discount rate. Options were exercised at average option prices of L Accounts Receivam $22.66 per share, $24.73 per snare and $21.35 per share in Acents receivable at December 31,1993 and 1992 in-1993,1992 and 1991, respectively. The average exercise cluded unbilled operating revenues of.$115 and$111 mil-prices of shares under option were $25.12 per share, lion, respectively. Accounts receivable at December 31, $23.18 per share and $20.34 per share at December 31, 1993 and 1992 were net of an allowance for uncollectible 1993,1992 and 1991. respectively, accounts of $15 and $ I 8 million, respectively, The Company is party to an agreement with a financial institution whereby it can sell on a daily basis and with limited recourse an undivided interest in up to $325 mil-lion of designated accounts receivable until January 24, [ 1996. At December 31,1993 and 1992, the Company had I sold a $325 million interest in accounts receivable under tw

~ PICo linergs company and hubstJuary Compantes Notes.80fonsolidated Fiflancial Statements

9. Preferred and Preference Stock At December 31,1993 and 1992, Series Preference Stock consisted of 100,000,0(X) shares authorized, of w hich no shares were outstanding. At December 31,1993 and 1992, cumulative Prefered Stock, no par value, consisted of 15,(XX),000 shares authorized.

Current Shares Amount Redemption outstanding (Thousands of Dollars) Price (a) 1993 1992 1993 1992 Series (without mand story redemption! ~ ~ ~ '~ $ 10.75 500.000 $ 50,000 $7.85 101.00 500,000 500.(XX) ! $ 50,000 l 50,000 $7.80 101.00 750,000 750,000 l 75,000 75,000 $7.75 101.00 200,000 200,(XX) 20,000 20.000 $4.68 104.00 150,000 150,000 15,000 ; 15,000 $4.40 112.50 274,720 274,720 27,472 1 27,472 1 $4.30 102.00 150,000 150,000 15,000 15,00() $3.80 106.00 300,000 300,000 30,000 30,000 $7.96t h) (c) 1.400,000 1,400,000 : 140,000 140.(XX) $7.18 (d) 500,000 50,000, i 4,224,720 1 4,224,720 422,472 1 422,472 u Series Iwith mandatory redemptioni (e) $9.875 102.50 390,000 650,000 39,000 65,000 $9.5' 200.000 ' 20,000 $9.501986 Series 675,000 67,500 $8.751978 Series I 200,300 - 20,030 $7.325 101.46 300,000 330,000 30,000 33,000 $7.00 101.00 248,000 256,(X)0 24.800 25.600 ! $6. I2 (f) 927,000 92,700, 1,865,000 2,311,300 l 186,500 l 231,130 Total Preferred Stock 6,089,720 6,536.020 l $608,972 l ~$653.602 .-d =-- 4 -.==c (al Redeemable, at the option of the Company, at the (d) None of the shares of this series are subject to re-indicated dollar amounts per share, plus accrued dividends. demption prior to April 1,2003. l (b) Ownership of this series of preferred stock is evi-(e) Sinking fund requirements ($100 per share)in the denced by depositary receipts, each representing one-period 1994-1996 are $16,800,000 annually and fourth of a share of preferred stock. $3,800,(P0 annually in the period 1997-1998. (c) None of the shares of this series are subject to re-(f) None of the shares of this series are subject to re-demption prior to October 1,1997, demption prior to August 1,1999. i 1 .--o-, .r-.- ,e ..w --._,..ge . - -,., *n

PECO Energy Company and Subsidiary C o m p a nie s Notes to e 'onsolidated Financial Statenients I0. Long-Term Debt (Thousands of Dollars) At December 31. Series Due. 1993 1992 First and Refunding Mortgage Bonds (a) 61/2% 1993 60,000 4 1/2 % - 13.05 % 1994 170,000 170,000 9% 1995 31,200 81/4% 1996 80,000 61/8% 1997 75,000 75,000 5 3/8 % - 10 % 1998 225,000 250,000 5 5/8 % - 11 % 1999-2003 1,635,069 1,255,200 6 % - 10 1/4 % 2004-2008 131,875 384,437 (b) 2(X)9-2013 154,200 8 7/8 % - 11 % 2014-2018 129,900 479,900 6 5/8G - 10 i/2% 2019-2024 1,776,561 1.207,130 1 Total First and Refunding Mortgage Bonds 4,297,605 4,012,867 Notes Payable - Banks (c) 1993-1996 167,000 372,000 Revolving Credit and Term Loan Agreements (d) 1995-1997 425,000 525,000 Pollution Control Notes (e) 1997-2025 65,565 173,700 Debentures 10.05 % - 1i % 1993-2011 62.000 87,000 Medium-Term Notes (f) 1994-2005 150,000 150,000 Sinking Fund Debentures - PECO Energy Power Company, a Subsidiary 41/2% 1995 10,550 11,350 Unamortired Debt Discount and Premium, Net (41.114) (28,9584 Total Long-Term Debt 5,136,606 5,302,959 Due Within One Year (g) 252,263 98,998 Long-Term Debt included in Capitalization (h) h 4,884,34 $ 5,203,961 (a) Utility Plant is subject to the lien of the Company's involving yields on several types of debt instruments. There mortgage. is an annual commitment fee of 0.15% on the unused amount. (b) Floating rates, which were an average annual interest The average annual interest rate for this revolving credit rate of 2.40% at December 31,1993, agreement was 3.64% at December 31,1993. The Company (c) The Company has entered into interest rate swap agree-also has a $150 million revolving credit and tenn loan agree-ments to fix the effective interest rates on certain of these ment with a group of banks.The revolving credit agreement notes. At December 31,1993 and 1992, the Company had converts into a term loan in July.1995 and the commitment two and three interest rate swap agreements outstanding tenninates in 1997. There is an annual commitment fee of with commercial banks, for a total notional principal 0.2% on the unused amount. At December 31,1993 and amount of $167 and $242 million, respectively, These 1992, no amount was outstanding under this agreement, agreements are subject to performance by the commercial (e) Floating rates, which were an average annual interest banks, which are counterparties to the interest rate swaps. rate of 2.24% at December 31,1993, flowever, the Company does not anticipate nonperfor-(f) Medium-term notes collateralized by mongage bonds. mance by the counterparties. The annual interest rate for . The average annual interest rate was 7.61% at December these notes, giving effect to the interest rate swaps, was 31,1993. .10.61% at December 31,1993. (g) Long-term debt maturities, including mandatory sink-(d) The Company has a $525 million revolving credit and ing fund requirements, in the period 1995-1998 are as temi loan agreement with a group of banks. The revolving follows: 1995 5201,213,000; 1996 $393,463,000; 1997-credit arrangement converts into a term loan on October 3, $266,463,000; 1998-$241,463,000. 1994. The borrowings are due in six semi-annual install-(h) The annualized interest on long term debt at Decem-ments with the first payment due six months after the conver-ber 31,1993, was $368 million, of which $326 million was sion into the term loan. Interest on outstanding borrowings associated with mortgage bonds and $42 million was asso-is based on specific foimulas selected by the Company - ciated with other long-term debt. thirty two m,,

- - ~ .....~._,. ~ i i PEC0 Energy Company anJ Subsidiary C o mp a nle s Notes to ('unsolidated Hnandal Ntalements I I } II. $hort-Term Debt (Thousands of Dollars) 1V9.1 1992 1991 l Average Borrowings 113,193 50,161 13,493 j _ Average Interest Rates, Computed on Daily Basis 3.35 % 3.72 % 6.17% l Maximum Borrowings Outstanding 368,400 255,500 81,000 Average Interest Rates at December 31 3.45 % 3.729 At December 31,1993, the Company had formal and infonnal lines of credit with banks aggregating $351 million against which $119 million of short-temi debt was outstanding, fhe Company does not have formal compenstting balance arrange-ments with these banks. The Company has a $150 million commercial paper program and at December 31,1993, there was no commercial paper outstanding. I2. Income Toxes (Thousands ofDollars) 1993 1992 1991 Included in Operating income: Federal Current 117,535 131,054 $ ~ l20,646 - Deferred 113,054 66,281 67,914 Investment Tax Credit, Net 43,344 (3,495) 58,078 State l Current 70,740 78,546 71,516 Deferred 9,718 (7,903) (9,2091 354,391 264,483 '308,945 included in Other income and Deductions: Federal Current 13,650) (45,295) (1,957) Deferred 15,926 20,237 16,483 State Current (1,615) (18,430) (732) Deferred 1,147 3,328 2,648 11,808 (40,160)4 16,442_ 5 366,199 224,323 l $ 325,387 Total in accordance with SFAS No.109, the Company has $2.3 billion at December 31,1993, representing primarily also recorded an additional accumulated net deferred in-the cumulative amount of federal and state income taxes come tax liabili y and pursuant to SFAS No. 71," Account-associated with the elimination of the net-of tax AFUDC t . ing for the Effects of Certain Types of Regulation," a accounting methodology. corresponding recoverable deferred income tax asset of I thirty-three . -, a-

PECofnergy Company and Suhaidiary Companies Noten to Consolidated FinancialFeatesments The $2.' billion accumulated net deferred income tax credits generated from 1988 through 1992 have not been liabilit - .cs the tax effect of anticipated revenues and utilized due to limitations 1 ased on taxahle income. These reverse as the related temporary differences reverse over credits, which expire between 2003 and 2007, may be used the life of the related depreciable assets concurrent with to reduce federal income taxes in future years, the recovery of their cost in rates. The Internal Rn enue Service (IRS) has completed its Also included in the accumulated deferred income tax examinations of the Company's federal income tax returns liability are other accumulated deferred income taxes, through 1986. The 1987 federal income tax return has not principally associated with liberalized tax depreciation, been audited and the 1988 through 1990 federal income established in accordance with the ratemaking policies of tax returns are currently under exan ination. the PUC based on Dow-through accounting. For the years 1987 through 1990, the Company's cur-ITC and other general business credits reduced federal rent tax liability was determined under the AMT method income taxes currently payable by $60, $41 and $71 mil-resulting in a cumulative tax credit of $176 million which lion in 1993,1992 and 1991, respectively. Under the Tax can be utilized in future years w hen regular tax liability Reform Act of 1986, ITC was repealed effective January exceeds AMT liability. 1,1986 with the exception of transition property. The The tax effect of temporary differences which give rise Company believes that Limerick Unit No. 2 qualifies as to the Company's net deferred tax liability as of December transition property eligible for ITC. 31,1993 are as follows: Approximately $36 million of additional business IMdlions of Dollars) Liability Nature of Temporary Difference: "' (A S '(!) Utility Plant Accelerated Depreciation 1,270 Deferred Investment Tax Credits 346 AMT Credits (176) Other Plant Related Temporary Differences 1,335 Taxes Recoverable Through Future Rates, Net 980 Deferred Debt Refinancing Costs 142 Other, Net (155) Deferred income Taxes per the Balance Sheet 3,742 The net deferred tax liability shown above is comprised Consolidated Statement of Income for the year ended of $4.182 billion of deferred tax liabilities partly offset by December 31,1993. This change also resulted in a $107 $440 million of deferred tax assets. million increase in the Deferred Income Taxes liability The Omnibus Budget Reconciliation Act of 1993 on the December 31,1993 Consolidated Balance Sheet, changed the federal income tax rate for corporations to because the Company expects to receive recovery of all 35% from 34%, effective January 1,1993. This change taxes when paid, resulted in an $8 million increase in income Taxes in the m7

,.w-n

~ -. ~, - -, - -v.--~ -,,-,,n+--.v-,,-,-- e v r ,n.-,,-

i i l PECo Fnergy Company and SubstJiary C o m t* a n t e s l l Notes to Consolidated Financial Stateenents Provisions for deferred income taxes consist of the tax effects of the following timing differences: (Thousands ollballarsl 1993 _ __ _1992 lYYI __ Depreciation and Amortization 78,324 i 5 93,469 l $ 89,760 Deferred Energy Costs 19,013 ' ( 18,033)l (19,916), Early Retirement Plan - i I,865 j 16,024 l Incremental Nuclear hiaintenance and Refueling Outage Costs (827)! (1,627 ); (5,629)l Uncollectible Accounts 625 ; (2,629)j (7,750 )' . eacquired Debt 28,959 { 39,123 ( 18,688 R Unrecovered Revenue (806[ (56,050 [ (43,983) Alternative h1inimum Tax -i -i 6.331 i Limerick Plant Disallowances and Phase In Plan 17,073 i 15,118l 16.634 l Other - _ _.(2,516 )l. 10,707 - -- 677 l 7, y I'8*' I39 845 j $ __ __81,943j $_._77,836q The total income tax provisions differed from amounts computed by applying the federal statutory tax rate to income and adjusted income before income taxes as shown below: (Thousands of DollarsI 1993 1942 1941 i Net Income 590,648 478,941 [ $ 534,680 j Total Income Tax Provisions 366,199 224,323 j _ _325,387j i l Income Before Income Taxes 956,847 703.264 l 860,067 l l Deduct: Allowance for Funds Used During Construction _ 23,774, _ 20,6_63 23,084 i Adjusted income Before income Taxes 933,073 682,601 i $ 836,983 ; l Income Taxes on Above at Federal Statutory ~ ] i i Rate of 35% in 1993 and 347c in 1992 and 1991 326,576 232,084 284,574 l increase (Decrease) due to: Depreciation Timing Differences Not Normalized 9,721 10,427 ! 15,258 j I Limerick Plant Disallowances and Phase-in Plan 5,094 2,159 3,490 I Unbilled Revenues Not Normalized (5,766)! 5,620 (24,624)j. (17,030) State income Taxes. Net of Federal Income Tax Benefits 51,994 36,657 42,387 Amortization of Investment Tax Credits (13,470) Prior Period income Taxes (3,942) (20,655)l (13.227) _ 9,774) . (5,959) __ 4,315 l Other, Net ( Totallncome Tax Provisions 366,199 i $ 224,323 l 325,387 l Provisions for Income Taxes as a Percent of: l l ~l ~~ Income Before Income Taxes 38,3'7c 1 31.99 : 37.8r7e Adjusted income Before locome Taxes 39.2% l _ 32.9% I 38.9% __4 nrnr_, I3. Taxes Other Thon income - Operating tThousands of Dollars) _ 1992_ _ _1991 1993 l Gross Receipts 155,407 158,314 ; $ 158,719 Capital Stock 38,990 28,013 ' 34,924 Real Estate 71.445 63,593 l 43,023 Payroll 31,490 29,410 j 31,439 Other 8001 ___2,5_38 :i ___ _ 6,456 y Toeos 298,132 j $_281_,868J $ 274,561 a theffve ~

.~_. = _ _ l'ECO Energy Company and Subsidiary C o mp a nie s

14. Leases Leased property included in Utility Plant at December 31, was as follows:

(Thousands of Dollars) 1Yet 1992 Nuclear Fuel 448,203 471,276 Electric Plant 2,169 _ 2.234 Gross Leased Property 450,372 473,510 Accumulated Amortization (255,670) (263,516) Net leased Property 194.702 209,994 The nuclear fuel obligation is amortized as the fuel is consumed. Amortization of leased property totalled $58, $55 and $59 million for the years ended December 31,1993,1992 and 1991, respectively. Other operating expenses included interest on capital lease obligations of $8, $7 and $10 million in 1993,1992 and 1991, respectively. Minimum future lease payments as of December 31,1993 were: Year Ending December 31, (Thousanas of Dollars) Capital Leases Operating Leases Total 1994 70,413 97,982 168,395 1995 65,988 96,821 162,809 1996 59,273 60,501 119,774 1997 18,220 59,538 77,758 1998 92 55,861 55,953 Remaining Years 1,181 616,834 618,015 Total Minimum Future Lease Payments 215,167 987,537 $ 1,2030]4 Imputed Interest (rates ranging from 6.5% to 17.0%) (20,465) Present Value of Net Minimum Future Lease Puyments 194.702 j Rental expense under operating leases totalled $99, $94 and $89 million in 1993,1992 and 1991, respectively, l

15. Jointly Owned Electric Utility Plant The Company's ownership interests in jointly owned electric utility plant at December 31,1993 were as follows:

Transmission and Pnxluction Plants Other Plant Peach _ _ _ _ _.. _ _. Bottom Salem Keystone Conemaugh Operator PECO Public Service Pennsylvania Pennsylvania Energy Electric and Electric Electric Various Company Gas Com.pany Company Co_mpany Companies Participating Interest 42.49 % 42.59 % 20.99 % 20.72 % 21% to 43% Company's share of crhousands of Dollars > Utility Plant 708,532 1,174,379 86,742 91,299 87,809 Accumulated Depreciation 253,057 370,825 42,735 43,443 26,795 Construction Work in Progress 21.764 40,562 10,850 54,252 991 The Company's participating interests are financed with Company funds and, when placed in service, all operations are accounted for as if such participating interests were wholly owned facilities. On April 2,1992, the United States District Court for the District of New Jersey approved a settlement of the lawsuits filed against the Company by the other co-owners of Peach Bottom concerning the 1987 shutdown of Peach Bottom ordered by the NRC, As part of the settlement, the Company paid $131 million to the other co-owners on October 1,1992 and the thtrty-six

PEcoEnergy Company and S u h.s I J i a r y C o mpa nie s l Notes to Connalidated Financial. State nents I l l Company recognized a charge against income ($76 million, net of taxes)in the first quarter of 1992. In 1990, the Company received net proceeds of $28 million ($16 million, net of taxes) in settlement of a shareholders' derivative suit in connection with the 1987 Peach Bottom shutdown, Recognition of the $28 million had been deferred pending the resolution of the co-owners' litigation. As a result of the settlement of the co-owners' litigation, the $28 million was recognized as other income in the first quarter of 1992 and reported as an offset against the amount of the above-men-tiened charge relating to the settlement of the co-owners' litigation. I6. Segment Information (Thouaands of Dollars 1 I993 1992 I99I Electric Operations Operating Revenues $ 3,605,425 $ 3,597,141 $ 3,662,573 Operating Expenses, excluding Depreciation 2.228,507 2,236,907 2,253.159 Depreciation 400,851 390,846 379,607 Operating Income 976,067 969,388 $ 1,029,807 a Utility Plant Additions 458,125 461,407 422,780 Gas Operations ] Operating Revenues 382,704 365,328 356,013 Operating Expenses, excluding Depreciation 299,259 278,407 283,665 Depreciation 24.101 22,933 20,965 51,383_i Operating Income 59,344 63,988 5 Utility Plant Additions 72,481 74,858 $5,098 Identifiable Assets

l Electric

$ 10,395,488 $ 10,393,449 $ 10,213,296 Gas 727,690 658,825 590,151 Nonallocable Assets 3,909,149 1,525,953 1,720,013 4 Total Anets $ 15,032,327 $ 12.578,227,! $ 12,523,460 9

Includes Utility Plant less accumulated depreciation, inventories and allocated common utility property,

81. Cash and Cash Equivalenn For purposes of the Statements of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The following disclosures supplement the accompanying Statements of Cash Flows:

iThoinands of Dollars J 1993 Igg 1991 Cash Paid During the Year: Interest (net of amount cap;talized) 474,735 515.696 $51,944 Income taxes (net of refunds) 182,751 224,352 193,340 Noncash investing and Financing: Capital lease obligations incurred 42,484 40,757 41,905 thr!Tf-Seven <4

PLCo Energy Company and S u b s idia r y Companies rptWWemweildstadMannciat mtem6a I8. Investments (Thousands of Dollarsi Daember.4i, 199I 1002 l Trusts and Escrow Deposits for Decommissioning Nuclear Plants 149,932 125,703 Real Estate Developments and Other Ventures 46,741, 48,273

_z Nonutility Property 21,262 !

23,141 = Gas Exploration and Development Joint Ventures 625 5,026 Other Deposits 76 279 218,636] $ 202.4;2 J rotal l

19. Fmancial Instruments SFAS No.107," Disclosure About Fair Value of Financial Instruments," requires additional disclosure about the fair

~ value of financial instruments, including liabilities, for which it is practicable to estimate fair value. Fair values are estimated based on quoted market prices for the same or similar issues. The carrying amounts and fair values of the Company's financial instruments as of December 31,1993 and 1992 were as follows: 1993 1992 Carrying Fair Carrying Fair erhousands of Dollarsi Amount Value Amount Value Cash and Temporary Cash Investments $ 46,923 $ 46,923 $ 50,369 $ 50,369 Long-Term Debt (including amounts due within one year) 5,136,606 5,375,427 5,302.959 5.546.896 Trusts and Escrow. Accounts for Decommissioning Nuclear Plants 149,932 160,141 125,703 131,138 Financial instruments w hich potentially subject be in excess of the Federal Depository insurance Corpora-the Company to concentrations of credit risk consist tion limit. Concentrations of credit risk with respect to principally of temporary cash investments and cus-customer accounts receivable are limited due to the tomer accounts receivable. The Company places its Company's large number of customers and their dispersion temporary cash investments with high-credit, quality across many industries, financial institutions. At times, such investments may

20. Nuclear fuel Agreement with Long Island Power Authority (LIPA)

On March 1,1993, the Company entered into an agreement being recognized in income. The Company recognized with LIPA and other parties, subsequently revised on Sep- $20 million as other income in the Consolidated Statement tember 14,1993, to receive $46 million as compensation for of Income for the year ended December 31,1993, and accepting slightly irradiated nuclear fuel from Shoreham deferred $6 million of payments received on the December Nuclear Power Station. The Company is to receive the $46 31,1993 Consolidated Balance Sheet, pursuant to this million in installments as the shipments of nuclear fuel are agreement. The Company estimates that the acquisition of accepted. The first of the thirty-three shipments arrived at the fuel will result in benefits to the Company's customers Limerick on September 28,1993. As of December 31,1993, of $70 million over the next 12 to 15 years due to reduced the Company had received 18 shipments of the nuclear fuel. fuel-purchase requirements. The payments from LIPA, in excess of related costs, are ~ [hlr[y-effl[

PECoEnergy Company and Subsidiary Companies Notest4MidaidMhMtsNtGEWn 2l. Quarterly Data (L)noudoted) The data shown below include all adjustments w hich the Company considers necessary for a fair presentation of such amounts: (Thousand1 of voltarsj Operating Revenues Operating Income Net income Quarter Ended 1993 1992 1993 1992 1993 1992 March 31 $1,071,492 $ 1,079,890 $281,734 $274,580 $l62,356 $ 88,401 June 30 901,703 903,245 223,196 222,426 107,691 94,325 September 30 1,073,134 996,138 290,937 268,699, 181,683 142,338 December 31 941,800 983,196 239,544 267,671 l 138,918 153,877 Earnings Applicable Average Shares Earnings (Thousands o/Dollarsi_ to Corr. mon Stock Outstanding. Per Aserage Share Quarter Ended 1993 1992 1993 1992 1993 1992 March 31 $149,305 $ 72,013 220,609 220,068 $0.68 $0.33 June 30 94,540 78,207 220,856 220,170 0.43 0.35 September 30 169,727 128,754 221,318 220,327 0.77 0.59 December 31 128,018 139,236 221,493 220,411 0.58 0.63 1992 first quarter results include a net charge of $103 1992 fourth quarter results include a net benefit of $24 million ($60 million, net of taxes), or $0.27 per share, as million, or $0.11 per share, as a result of the settlement of a result of the settlement of the litigation concerning the the Company's 19841986 federalincome tax returns. 1987 shutdown of Peach Bottom (see note 15). tmrty rune

PECO Energy Company and Substdnars Campannes Summary of Earnings and financial Condition r Whm..f Do!ian, For the Year [:nded I993 I992 1991 l990 1989 1988 1 Operating Revenues $ 3,988.1 ! $ 3,962.5 4,018.6 $ 3,786.7 l $ 3,473.8 j $ 3,246.3 l Operating Income 1,035.4 ! I,033.4 ! 1,081.2, 767.7 809.3, 742.6 ) 478.9 li 534.7 l 105.8 590.5 l 566.0 l n income from Continuing Operations 590.6 l 478.9 Net Income 590.6 ! 534.7 i 214.2 590.5 ' 566.0 l 493.9 ! Earnings Applicable to Common Stock 541.6 l 418.2 468.6 ! 123.9 i 468.8 f a Earnings Per Average Common Share ( l j From Continuing Operations (Dollars) 2.45 l 1.90 ! 2.15 l 0.07 l 2.36 j 2.33 j Eamings Per Average Common l l l l { l Share (Dollars) 2.45 ' l.90, 2.15 0.58 i 2.36 ' 2.33 ! h, 1.325 l 1.225 1.45 ! 2.20 ! 2.20 Dividends Per Common Share (Dollars) 1.43 Common Stock Equity (Per Share) 19.25 l 18.24 j 17.69 l 16.7 l l 17.67 17.39, j Average Shares of Common Stock l l l Outstanding (Millions) 221.1 l 220.2 l 218.2 ! 214.4 208.9 l 201.5 l l l At Det ember 31 Net Utility Plant, at Original Cost $10,763.0 ! $10,691.2 l $10,598.4 $10,591.3 ; $10,720.8 $ 10.048.5 t Leased Property, Net 194.7 ' 210.0 ! 223.8 241.3 j 273.5 287.5 l Total Current Assets 514.8 550.0 l 783.2 ; 745.0 l 655.0 502.5 j Total Deferred Debits and Other Assets _ 3,559.8_ _ l_,127.0_j 918.1j _ _938.6 _ _ 972.8j __953.9 y Total Assets $15,032.3.. $ 12,57_8.2 $I2,523.5j $12,516.2 l $12,622.l_j $11,7jt.4 l ..-_m Common Shareholders' Equity $ 4,263.4 ! $ 4,022.2 $ 3,892.3 $ 3,624.5 ; $ 3,744.8 I $ 3,592.6 Preferred and Preference Stock f Without Mandatory Redemption 422.5 l 422.5 422.5 422.5 l i 622.4 s 622.4 l With Mandatory Redemption 186.5 l 231.1 ! 315.6 330.9 j 351.1 i 368.1 i Long-Term Debt 4,884_.3 ! 5,203.9 ' 5,415.6 ! 5,830.8 l 5,762.7 5,219.5 ! a 4 Total Capitalization 9,756.7 ! 9,879.7 10,046.0 i 10.208.7 ! 10,481.0 9,802.6 Total Current Liabilities 954.6 i 830.6 823.4 i 783.8) bb.5 [I Total Deferred Credits and l Other Liabilities 4,321.0 ! 1,867.9 ! 1,654.1 j _1,523_.7j _1,350 6 3,_ 1,327.4 Total Capitalization and Liabilities $15.032.3 ! $12.578.2 l $12.523.5 $12,516.2 ' $12,622.1 i $11,792.4 i = = = d._= = = ~ = - D Y

PECoEnergy Company and Subsidiary Companies Oddrating1ilMistics Electric Operations IWl IW2 1991 1990 1989 19M 7,913 l Output (Millions of Kilowatthours) l Fossil 10,352 j 8,082 ' 7,376 10,470 10,225 Nuclear 27,026 i 24,428 25,735 23,715 12,890 12,328 flydro 1,699 l 1,803 1,388 2,266 1,743 1,307 I Pumped Storage Output 1,478 i 1,597 l 1,653 1,437 1,354 1,515 Pumped Storage input (2,192 h (2,217)l (2,355) (2,059) ( 1,937 ), (2,163) Purchase and Interchange 6,447 l 8,675 j 8,603 ' 5,787 11,192 i 11,802 Internal Combustion 56 l 29 i 79 152 348 285 Other j __ _ _ - - _ _ 180 -j l.063 Sales (Millions of Kilowatthours) 37,123 ]: 35,299 l Totaf Electric output -... _ _ _44,866 i 42,397 l 42,479 39,391 q Residential 10,657 9,894 10,311 9,815 9,974 10,058 Small Commercial and Industrial 5,773 5,367 5,284 5,066 4,921 4,666 Large Commercial and Industrial 15,935 15,770, 16.177 16,554, 16,749 ! 16,516 Other 771. --962l 1,029 1,010 ! 1,031 ' 999 1 Service Territory 33,136 ' 31,993 l 32,801 32,445 : 32,675 32,239 i 2,751 lI Interchange Sales 457 1,231 ' I,612 ' 2,027 435 Sales to Other Utilities 8,670 6,699 5.445 1,865 t 37,061 l __ _34,702 l Tota: Electric output 42,263 39,923 39,858 32,674 .___J_ Number of Customers, December 31 Residential 1.341,873 1,333,926 1,324,795 1,320,126 I 1,309,717 1,296,784 Small Commercial and Industrial 142,363 141,253 140,901 140,305 138,244 135,274 Large Commercial and Industrial 3,742 3,972 4,162 4,344 4,449 4,520 Other 888 ! 857 840 817i 775 779 Total Electric Customers 1,4M8,866 _1,480g)8_ _1,4_7(1698_ _ l_,4,65,592j 1,453,185 1,437J57 Operating Revenues (Malions of Dollars) \\ Residential $ 1,354.1 $ 1,304.5 $ 1,342.3 $ 1,229.8 $ 1,157.0 ' $ 1,127.8 Small Commerciei and Industrial 678.9, 669.8 641.0 595.2 537.1 489.4 Large Commerc al and Industrial 1,164.0 l 1,223.2 1,278.9 1,247.1 1,182.0 1,089.3 i Other 161.2 i 168.0 170.4 166.9, 143.9 143.8 Service Territory 3,358.2 3,365.5 3,432.6 3,239.0 3,020.0 2.850.3 3 Interchange Sales 14.3 l 32.1 42.8 81.5 68.2 17.6 Sales to Other Utilitiu _ __ 2 32.9j _ _l.99.5_ _ _187.( 81.1 Total Electric Revenue: $ 3,605.4 ! $ 3,597.1 $ 3,662.6 $ 3,401.6 $ 3,088.2 I $ ^'2,867.9 I ~ operating Expenses (Minions of Dollars) l l i i I Operating Expenses, excluding j Depreciation $ 2,228.5 I $ 2,236.9 l $ 2,253.2 $ 2,325.2 $ 2,077.4 $ 1,931.3 Depreciation 400.8 l 390.8 l 379.6 337.7 257.4 245.5 H -1 y Total Operating Expenses $ 2,629,3 l $ 2,627.7 i $ 2,632.8 $ 2,662.9 $_2_,334.8 l 5_2_,17_6.8.d' .g Electric operating income 976.1l$ 969.4 $ 1,029.8 738 753.4 I $ 691,1 ! Average Use per Residential Customer l . _ _ _ _ _ _ q.7 i $_ _ -- q ----- J (Lilowatthours) Without Electric IIcating 6,727 e 6,259 6,707 6,376 6,488 6,667 With Electric Ileating 17.096 l 16.298, 16.201 16,038 17,250 17,738 Total 7,970 7,443 ' 7,801 7,464 7,655 7,807 Electrical Peak Load, Demand (thousands ofiilowatts) 7,100 6,617 7,096 6,755 6,467 6,826 Mt Electric Generating Capacity - Year-End Summer Rating 8,766 7,759 l 7,762 phousands of Lilowatts) 8.877 8,836 8,766 l $ Cost t r Fuel per Million Btu 0.90 0.82 $ 0.92 j 1.13 1.37l$ 1.19 Btu per Net Kilowatthour Generated 10,675 _10,657_J 10.849J 10,844_ 10,8_94 j 10 881 1 (wty we

PECO Energy Company and S u b sidia r y Compantes OperatinkStatiMIts Gas Operations 1991 1992 199/ _ 1990 1989 l9xN Sales (Millions of Cubic feet) Residential 1,637 1,819 1,746 1,778 1,951 1,933 llouse 11 eating 30,687 29,750 26,423 25,303 28,301 28,112 Commercial and Industrial 22,943 21,497 20,492 23,228 30,038 39,073 Other 5,656 2,146 534 1.567 2,344 2,228 Totai ca Sales 60,923 55,212 49,195 51,876 62.634 71,346 Gas Transported for Customers 22,946 22.060 21,414 24,413 18,033 9.272 Total Gas sales a 7-ansported 83,869 77,272 70,609 76,289 80.667 80,618 Number of Customers, December 3 D Residential 59,573 59,859 62,444 63,267 65,544 66,599 Ilouse lleating 277,500 269,577 260,473 254,564 246,273 239,022 Commercial and Industrial 31,573 30,956 30,2N J 29,456 28.369 27,119 Total Gas Customers 368,646 360,392 _353,121 j 347,287 340,186 _332,740 Operating Revenues (Millions of Don.rs) l Residential 15.0 16.4 17.0 ' $ 18.1 5 18.0 17.0 llouse 11 eating 205.5 201.9 192.4 2(X).8 195.8 180.6 Commercial and Industrial 124.2 121.1 123.6 144.7 152.5 165,1 Other 15.2 2.8 2.2 5.6 7.3 61 Subtotal $ 359.9 $ 342.2 $ 335.2 $ 369.2 $ 373.6 $ 369.3 Other Revenues (including Transported for Customers) 22.8 23.1 20.8 15.8 12.1 9.1 Total Gas Revenues $ 382.7 $ 365.3 $ 356.0 $ 385.0 $ 385.7 i $ 378.4 Operating Expenses (Milloons of Dollars) l Operating Expenses, excluding Depreciation $ 299.3 $ 278.4 $ 283.7 $ 336.2 $ 310.2 $ 308.3 Depreciation 24.1 22L 21.0 19.8 19.6 i 18.6 Total Operating Expenses $ 323.4 $ 301.3 $ 3N.7 $ 356.0 $ 329[$ 326.9 55.9 ! $ 5 Gas Operating income (Mstlions of Dollars) 59.3 64.0 51.3 29.0 ,$===r-J =r,1.5

:r=m __=

r- -- r; Securities Statistics Ratings on PECO Energy Company's Securities Mortgage Bonds Debentures Preferred Stock Agency Rating Date Established Rating Date Established Rating Date Established Duff and Phelps,Inc. IIIUi U 4/92 BBB 4/92 IiBII-8/91 Fitch Investors Service, Inc. A-9/92 BBB+ 9/92 BBB+ 9/92 Moody's Investors Service Baal 4/92 Baa2 4/92 baa2 4N2 Standard & Poor's Corporation BBB+ 4/92 BBB 4/92 BBB 4/92 NYSE-Composite Common Stock Prices, Earnings and Dividends 13y Quarter (Per Shore) 1993 1992 Fourth Third Second First Fourth Third Second First _ Quarter Quarter Quarter Quarter _ Quarter _ Quarter Quarter _ Quarter liigh Price $32 7/8 $231/2 $31-1/8 $30-3'8 $26-3/4 $26-3/4 $26-5/8 $26 Low Price $27-3/8 $30-3/8 $27-3/4 $251/2 $25 $25 $23-5/8 $22-5/8 Close $30-l/4 $32-3/4 $30 5/8 $30 $26-1/8 $26-3/8 $26-3/8 $24 5/8 Earnings 58v 77c 43c 68v 63c 59c 35c 33e Dividends 38v 35c 35c 35c 35c 32.5c 32.5e 32.5e forry4wo l

PECO Energy Company and Subsidiary C o m p,a n i, RW Joseph F, Paquette, Jr. (59) David R. Helwig (42) William H. Smith, Ill(45) Chairman and Chief Vice President Limerick Vice President, Planning and Executi,e Officer Generating Station Performance Corbin A. McNeill, Jr. (54) Thomas P. Hill, Jr. (45) Albert J. Solecki(53) President and Chief Vice President and Contreia Vice President, Support Services Operating Officer Kenneth G. Lawrence (46) Alvin J. Weigand (55) William L Bardeen (55) Vice President, Gas Operations Vice President. Transmission and Distribution Services Senior Vice President, Finance and John M. Madara, Jr. (50) Chief Financial Officer Vice President, Production Lucy S. Binder (56) James W. Du.hom (56) Albert G. Mikolauskas (57) Secretary Senior Vice President and Vice President, Customer and J. Barry Mitchell(46) General Counsel Marketing Services Assistant Treasurer and Director William J. Kaschub (5 l) Gerald R. Rainey {44) of Financial Operations Senior Vice President, Vice President, Peach Bottom Atomic James F. Hohenstein (50) lluman Resources Power Station Assistant Treasurer Gwandolyn S. King (53) Morton W. Rimerman (64) M. Dorothy Lyons (52) b Senior Vice President, Corporate Vice President, Finance and Treasurer Assistant Secretary and Public Affairs Todd D. Cutler (33) Dickinson M. Smith (60) Assistant Secretary Senior Vice President, Nuclear I i Management Changes: Donald B. Miller resigned as Vice President, Peach Bot-Gerald R. Rainey was elected Vice President, Peach Bot-tom Atomic Power Station, effective November 24,1993, tom Atomic Power Station, effective November 24.1993. j l bb forty-three \\

FECO Energy Company and S u b sidia ry C o m p a nie s Board of Directors l Susan W. Catherwood {50) Nelson G. Harris (67) Joseph J. McLaugl fin * (65) Chairman, Trustee Board, Chairman of the Executive Committee, Former President and Chief Executive 4 j The University of Pennsylvania Tasty Baking Company Officer, Beneficial Mutual Savings Bank ,j ifealth System Robert D. Harrison (10) Corbin A. McNeill,Jr. (54) M. Walter D'Alessio (60) Management and marketing President and Chief Operating Officer President and Chief Executive Officer, consultant of the Company Latimer & Buck, Inc. (Mortgage Joseph C. Ladd (67) John M. Palms, PhD. (58) banking and real estate Former Chairman. President, University of development.) The Fidelity Mutual Life South Carolina Richard G. Gilmore* (66) Insurance Company Joseph F. Paquette, fr.* (59) Former Senior Vice President, Edithe J. Levit, M.D. (67) Chairman and Chief Executive Finance and Chief Financial President Emeritus and Life Member Officer of the Company j j Officer of the Company of the Board, National Board Ronald Rubin *(62) } Richard H. Gianton, Esquire (47) of Medical Examiners General Partner Richard I. Rubia & Co. Partner of the law firm Reed Smith Admiral Kinnaled R. McKee* (64) (Real estate development Director Emeritus, U.S. Navy and management) ) Shaw & McClay James A. Hagen* gol) Nuclear Propulsion A Chairman, President and Chief t Executive Officer Conrail,Inc. i l a l

Member of Executive Committee 1

4 f fortpfour m

,,,......:.*<.....A. 'm ,q,., ey. -..:.,' i 'l... ..-4.

u.

",2
','.l e :..':.

-s.- ,2 .c ~a t -...s a...... ..&.., g..,....: -, -. ..,...,.;.....,s. -. f. .. s.. p. r~,:. <-\\' e.-,.*. .f, k.l,l f y.'..., ., ' ). < l '. '.v;, ' 1:. s,..-. . ' \\; - l.. -.

^

';.}.. ':.,, f., h, - Q, l..,f. 5.~ l : l., .:.f,', ,k'y.l_ ,f. 'l*.,.) l, _ f..,b.. ' ' ;. f..'.,,... _ : ? '..,,: ; '.,, ', hy,.' ' j:.; <..s.l :' n;f:;. &,'.c.g

. ;.., ;: . :.l_y....'-

.,.( ); q e '; ; : 1.; . 9,e :.s.,.,' z :.,.;. ,,.. ; ' % - -....y,_.. y ly :

? '

. h.; } !;

.. f. #,, ".. i.* y

~? 's.a(a.; y ~ '.4,5.;.. i' : ** ;.. ].. ; i... :. ' Q':. '.~.f~ '.';.., g:;,.:, s-}ll. ~ ~- 3' ~. *v k':' t., 's.- l ; ;k i. :.,,: ',. > - '-.,., y.4..3 u-l,. 4,, -, 'g e.,. f. ., I., 'l7.g ;. ',;4*:. ' * '. 1 i .w . ;.. s ;?;;. ".'.... . i. ' - ' '.:? .. ' C ' -l fl.'.; y - \\ .,s,,.-..* ... _;,. ; r.. g:..,<- ,3;f, w. 3 y,.n;... - g...., "g: - s e t i :.;, /i.-

l _.... ',%q..!,., :

,... s; g z,

Y: i. l'.h I' .. *,, '

{l-l . y . =. <.,. ;; { 'S ' *I.f. !

h l,
.,N:

. ? l;.', : * ". _W ? .N., $_, ',.h: !Il,',f.;l '(( ? ;[ f; ?

* ' \\0.' :".'5 ?, :[, f k.

.,R.f $hfh.p;., s l f. 'j ' ~ N..l. s;~._ $,r.,,.,.,,', q,fr.. ^ N.$ & & _ hl, h. ,q,. $....., \\... ;.): ;. /.,q ; ; f;f.. 0.$$. '. ,.,., _, y;;.,, ;, ;,,,,.....;,,:...' <;,s ,; Q.h k WI.fn..7..'.,.,;,:,,, '., '. - ., 3,.,., *l.. _.,.,. 3, '.. !d ; y;'

.3 h

_N .!',..^ 'l'. ' _: ?.,:;.,._,'..c l.l f.0,.,,"::':' #.! '.? ' .,:..',~ i,. v.% ..:.%..i,..';,.. .r 7 .._ e : .c,.- .....c; ,.,,S,,.- - g.... e.s .,n . :f.;dk'..:s}.l 'l,f. ;N,:,j,f. f,. ';I',}: '_{l .I;., fs:';* l';::, ..l.; . j Q:.,;.;.f_,l R-[f:;,f. A. . j.,. _.. ~ a : w,,f- ; ',*:,,;',a l+ =:

- s',..

s.

,. - yo :. *

.....,:~'<. . '.>, '.i;,_ ? j,.....;Ll.';;' ?; l.;. ; ? _; :_,

- ~..2.:

\\. c.. - '; b, ;, ;. ' - . _,;,.. _, _,..[.',. q,lj. ' - ,) 's_"[*;.;;[ t- ', ~. y: f ;. l, ^,'"l ' a ' .. '.. <: -.>.>..; y .,,,Jt' ;', '. '.. '*;'-l,, * :. . 4.. p n. ., g '.f y ;;... ~; '..;e;. ':,.ll s ' _. } .L..,;,;.'..:. i i. ...r s.; x o, r 1

, )

'.v

f.. l W. ; ; _ [... l 3~ ', v. k ;..,;,. ' f.;,, _' ' ' :3, '[ ' ! ),,, ' *l. ( ; i'. 4;y. '.,,,,vl'_.._

.. cp- ..'.q..;:.'. -}, ;. [ l ' ** j;;,_. -^ ' 3., )., j: f *. : {,. ' .....),._,- [ ^~,;.,,:;V_,..... ...'{. ".; ; __ ..,s' 3.1;.., '5: *._Q .'o l. .,,i ( I.,.;'

;, _.,.,.h.

l' k :: h '5' 'I e.:. '. Y W.. ;w'e mmegiim* simp.f f.Se p'somt,Aempwarp%Dow+acl'.,!.qe t

f ;..

,i. ? ?. y' I; j, .' 5 .( .y.s .g"s., ,5 - _

g....... ;

.._,,.3.,

[: *)'

l I

i:* e.

?,., L : *:.; ^: '- Y- ^ ,,l l .l' Y W Y' w' f e l, .,l^., h l f ll) ^ N M N M.k, hM4 M M M M M N $ . h N.abb[k h.[l.j:(1k.;i.V$ S I ( k .N} f. t'" ^ - (l, ',..J. I,. [., 'f !- l '.., f, _ ' l, '.. ;

l'l l

' (.. '.,_ '*, I;.f \\:., .. 5. l.', '..

e _ ' l i'.
f

) k.b h 'h

' - " ' ' ' */' *

I' ' ' d ' 0 - '.' ..l\\','. 'l': ..' f.. t f,. ) I iL 5 i,, I k[...... 'l ' i,. l [, '. ' ',;. E' 'I;. } h., ' 1 i.... I'.,.} i,.;. 2;O ?e / ( k ', d., ;; ' ( ' ',.. ;.', \\.,.. ' ' [. ' l ' ', , f '.., i\\ [

,.I g...,

h. l .I .. (,.. il ,..[,.lc .. Jewh.W w w m y @ g 4 0. v a min @ am w @$ w i w w' J r 2 W.c [.,, ) [. N, I - ....[. . :;, ~,..' *y',' ",I ' ' 3 ' ), "....: $ ', 1 I ;,,.

s

?.', : 'l .e [.' ,3 I {.. ',,.'f'. [ h.' f[ ' ' . iJ%H63%.wyW@kt%lWCWitic V2MMsi ' 3Tw'fN dWaL:I L,'.' ?..H: % s, '., .j h,, '?. '.,2, [,#, 7.., },.. '. [ i ...'f ,'h E. ll. ,. '

l. ' q:. 0 ' '

^* I \\... i ,t '.l-1 3.,. ; O 4,. ,..;j.,..s,'.

j..?-

.....mk r, :; . - l' ". :j '.,..., /s.? ht

y y

..,,. h II. #, .. '., ',,,,,. '. [ l, l. .M!, , ;f = ,' S f . k. ' .D:'. h - 4 I .k ; ? [, ' llY... Y.. ,,i, . '. '0.' i.,

l..h.. ; I'.

f. '.,_:: l '. l i,. t 'h, q... 1 I .,I ^;, ., !. ;-). A) '.fl, -{ * ' k. [' '[ ,... '.. ').. .Y,,, - 9 ' '., ,' *.,, h, 'l. j e 3 l:f,' [..';[q ;., c ,7 'l ,; $ ';: l . l l. ',,4. W f." ' ' h.0L : '. :I ~-^ ~ ,,\\, f N.: ? ' { 4 l, ' ' ?. h;.f, h ' l.Q. N. .,.... ). h ~,v. -,'.'.'i'. l ' f.: ..,,.. :s ?. , _' U. ?:, f.. ' ' ,'l t. % % @ m M % w u E,!w 1ll$*"^ft~sse,.'W WW),[,, %? f ? ?

^ ' ' ' * '
, [g,.

e ^ ,a, V._. ,' ~ ,f '.,. ',I - ',] ;[ ' ' i, :.. ( h f.,' )

: '. p.

.'..,w.. t-l ^. ', N.,.,ll..,, ? N.'.,3. . ',"~ll- .] l,'. .A.*.... - h i ? f a

h. g,.,..

,<I'** " <?. I' ,.k '- -.- .., ; '.,d'.i,

s. '

.t'. O., f -,,., ','

..),* ?..',.?'ll, l

,Y '

',< ' :l '.' ! f',.P,,, t t

.'. ' hL ,k....7, 3.. ,..y- ,f s. ,,,. i,.g-..,;. . J. - e :.::...,*:....,...s.>g.... ;, y,.;, ,~ '., f ;. y '., '; ,y .;Q,.. 3q.; n, J ,L. ,.,.r p ,a,.*e- _. ',,..do.: 2 e,,,,., ....._,,,;._.}'0.,,,'.'e .{,,g.],,,'..,),,',.' 3.:, '., ', z., Q '. ' ". .s .., ' i..;.

- ? t c,. '. '..

l,'.... V : f.)

G *.,p

,,..<.,'oh'.,',','.:.'.?:- .. _,f.e_.;,.y'o,.:y., ^ '. '";.',,,,';I.]'. e _,.',e. ... '.. ^.,, '. ..? c' e,'.

4.,.'1.+,,..,'..:,-. -.

..;)'.-. '.. .: ;. c '. 6.,,,'. ',;., '::,,,.,.:e., -'- 9.>, ..e. e .,. -z> 's * ;.., r,,...y 'l 'i~,t.:., v. ':<.,, ;f. ' '....,; 9 ,.L,c.';',',',,.',.>."_,:.=, ~, ;. m. ,,).;~ ,. u,. f,. _t r- +- - .... :. ~.. ;. ' ;: i f. '4

v, n,

. ~,,

r F -v s..... ,.L.._. k.,. ' g,., , _,;',, s... ':_' ' ",,.,v. ;;, su

s

g _ *

, ' 3, r- ,g.. 5 ....,,,,._;._;;,z.'..,,',, ;,',.., '.. ~,,_ _ s

l* ;.p: .-;.,,

, ;,'.-, ;;;. q. _ -',_ y',_ ... :, q; Q '_, a '... * ;. j,g, 3,, _ - ', ;',.,.

.f ' T

, \\...,.,,,,, '. ;. ;.; L .p, s.,, ,. i ,l. 3. 'a. 4.....,.;,,- ' ....,.<~c. >.;..i ,..,y... y .g. .,p:. l_,... a*;,... ,]

h. ?'. '.,.. '.,,,,.: ').j

<c'u,,...,

f., q....,'..;

~. .,,.s,n. : ' S ' '. 5 -,,~... r.

.'.y.<l........,;3....

s. l s

v. ' ".

s *.-, e e- .v .zP ,.., ':.'.').. ' '; L',. ;.. ..y c".,,. , 'l'... ..'i,,1. E.;'<, ',,> ':;', -.....;'.',,',i'.,,.,'i...,..,;;,.... '.

*. Q., '... tj.

).,. , ,,s':.,y % '.) -

,,,,'e*' ! ' *: .; f*" 'i '* p.'. ',

_.',.,.'s ,.,..f...;.,.,,'.,;.." q,- .,Y"".*;..'c :,J;,*. ';,,,... '. _,..., '.,. _., ~- _,' l, f.,, '_ g '.9,,' 'I. - ' n- ,f,,,',,,!- v; ,2, - l J r. i.; : _.,' . '. ", '. ;'.g:(,,.,._ ';,:.. },.

W' b. 4..~......%,.,!..'.8.

et. r '. ;.' l' *. } :;':' y.;,;Q.'.'., ; U._:: u ~..,, 4, I* f '. _'.,,:.';,,. ':

i.

...,.,., ;. x Q ',.W...,.'. 3 -_'..l.,','.. 3.'. 'l ..'J J ). !l,. .'.I,.. ., '..._.>'," '._ ' 'l ' q. ' * *. ' ',..,' .<e a ..a a s .f . 'q e 1, ..,..,..L::- 1 .' -* ;. ; v. ,.,/.,,, I'. P , ' '--'.'..s s + ',,. _-.. '. + - '+[..' t, - *.'i' * ". -' '. =

' PECO Energy Cmpany l-2.tol Market Street Ok l Philadelphia, PA 14101 3 L d, Y { t. a i i e E i + L 6 i i f h i 2 l' i 1 4 A 1 4 y a k e a VA 4 i i N 4 1 4 i l .i 1 a 5 4 4 -.,_,..,4-,-.-._..J....._ ....m

D l 1 iv.lvunaua hw j j ..c n w; t

i.q L-

.g ' ./ ' Q ~ 1, 3 ~ L - xa-uk p bbanIla( I 4" s gz

f..@

a -. 5,? N;i 14 'N ~ J g .0.. mn:= sw

a 'l-y g Y 4 + I 5 4 a s, s t t 'r ,o ( "(. n, .gq [s. a t t. : g.. e .. " z %y, lL e + .g 6 > ~ z 1, n: t "\\ ' ^) ff ~ ~ W . t, &; a.f ~ -- f Lf,

y a

+ ( ./-

e?

's-e i .a a e ,~ + 1 n ' ~ o a 1 x s< ~,' q, e r e ~ r 4 r

- e;t)<

^ +,, e- .s a t 0 4 4 '? - ~. g, ~ _f s ,'s.- [f i

?

so k k E f g Y v',, -s + <s ,I o 4 p. e e , a <,= </<, n o , w = 'l i;

);,

s it ip o > M.. t. =Q ' __'s,

e a

.a a r, + 1 '%,t. my o a = s j r ( e. c 4 4 s. 1 + kJ j f } W' h .i ' s 1, t e 4 g '*p ..'Y 9 f 1,:. ,a^ s. ,'f= 0 =e' 4

j,,, ^

s, , j' s'

jy c,1 s

ts o s ) ,P 3' / d / 1; i, " . O e n m. ~ s n. ,g 'e .'6.- .'e._ ~ _. -y. "~ (11 ~.vi. 3 p s 4 4

- ; r, y

i sisi g

+ P T + f 4 . ;.=.;.A _ Wipyst%g:,.ab. jeqsn8 erthwkest! G < gg;A".e,.;q.p 4'p' 2%,,:i,O. y'

? "; a r.. ;u g.qJ.,. fd,.f.'

t. ,F, ., r 4 g.: 4).r..W.;_.,,k:.+.:,Q43.i .w.._.... g Q N Q & ln;[ hwnfCaiesnC.Sfbf(:( g &.. W,.up.,-.3.',;,'n.;;;r.:;Q.:g&;_m n;7.x.i: U. .;( " - : a Q3 n!{y gf. & y;. 7 g y .9 ;h. M v'[:Q y & )

y. f

.QQ QQ g$g I, jf.'.N. '^ [l.I,; l \\.I ', '.. ',y. l

!. }

. ij ;* ,.I; .[. - j, /ff..k; 3. fI L [ h.'. J. 6 4 ). .O (

r 0.M%sE4W5!MMAirM,..

.$, M.x.h5.S1 M !9.4 M M,6 M W.' M M D.a-h d ' I .. q_ r...... $,,. 9.g,.... f,.,- y,:,. _ -- j P. ,h 3 . : e.,9

g. >. :.Am.3 ,,.

W; c..

: . ; 9.

.c..; _,..., g. 9, _ ;9. ~.4_-.-W,.,,~ ,_..;~.c,c. ..;.,.,..v .,...,...t_y. +,. y ; ;;:. Q,

l,3

..;.,. ;;,.. ;,' !, ;r_. , 3.,. : ..... : : ;. y. 7: .. ( :. g. ,,.m _,. ! /... :. j.... . - -.: y:? : .. i..-. ". c... ',... <, f.. a. ; v in; ;...:;..- .;.~ ~ ' y. ..~.~....:.~.: ...7,,,,.1 i i.

\\.

s z.

+..... q...:.

.ff k..kY. V ???. ';:.llf?. ll.l C..? S f...;Y.*' [. {l:f: ?.) i

k W.

h?.l(?5 k.Nll..{,::?.E;;..:l: l h[:.(,'? $$hk.*@&'& MkMNM@D;NNYl;[ff ff.

}._f.l; fy

' ?[f". 5 f:.:._,.f..h.l. h;/.f.N. [.; .?:J f!*f N);h..i.\\ " i [ 5MyT: 7 M ??:6..5. U.i. 1:3.i. N .'- l f., W? .f;( l- : ....4:.;.,;.. .., :. a.~.. 1 .v... t. . v.; .,...u.. ~..,.+:.., w v.; .c s ......., -. ;; ; 3;

_7..

q,.....g. :.., _.,. :. ..r. ~... . : +.

v..;.:... :,

.. ~. s.... .,,.:-p..- -: 8 +- .i. o.. r . O :.a...:.'..... 2 .s.. :.. :O. R..... :.7.. y,L..w. ..:... w. ;.: .:, c.;..:......+.;.' ;.s J.x., . / g' :. : [,. ',J:.... s:s " .. u. '.. ~, ;;;;...:...; :. .:;;. L ?. :::. t. .' ~

c.:......-

. ~...... .. c.v; w. c... o :-; x.. m:.

p

. c ....... 3 ;;:; , ;. 3... : - w m 7 r... - - - .:...:. v '. ; -._.:l: a ".. m,; ;..'.. a. ;.x: -7. y n. ::W. 1,.:.. - -~.. :::...... 3 . '..; V : a,;...; s.,......_._...,..,.;.._...>:...<;n.7.. ~ .. ;; y- + c; ; ;.... b.:...:.,. 3..;. ;c....~.e,.., q ~ .. ~. - c. g. ?, R,.. u . ;p 7 - .y ~..;.. :... v .,.. ~ . ~...~.v .. c:.. . c;. v 2. .a:.e .n. ::u- / _

y... a.,..

L ;. _: y. :. ' '.e..; ;., :,: w :. .c.,./),.., :...... - ^ ~., it.; p.. ". ;:. - ([: ) ; *; "!......;, -[ '. ..l:,.l; _..:....., .. & J:... 7:::.; ; ' k _! J :.. : ;, ,p. - 1.. .,. y c. ..3, ' ".): l. . ;. : :...,.u;.<... .L ...g-: .: (,.......,.. ,, _ 9 s.. l. 7.,_ ~. -. g.. <, ?-: _..,.._y;.. .._...i.....-,9.. .c.... .,3.,... ~.,.:.- ~ '...... - s..

. 7.g.

....a.__ '( (. :. R. _ i..

3.:; ;... ; >.;.. '.

......r . e:. : ::. v ;... ....u..,. . ~.;.. - 4- ...:..?.,.,.,._.,. i.~,,.., r ...';..\\(.. s, .;;:.+ x ':n'.. z - ....,;..y._',..,.' .. +. ..y. ' s y.; :.. : '..*#~ ~ _ ^: v: v ,,e e:

-: . ; _.,y _

. _:. ;,. ;.. ;.._;.,.. f. ; -. ,e.

.; 3

..... ;...;,.. ;.3: : g; :... ,. 9, (.' '. y.7 j. ',), ' ; '.o.. ?.y 6. } ',i' 7.. ",f }' ~,;~ y: -', ', } _ ;, '., ' ~ j. y;. ..i,f.,< :.',. - - ][; ..c,

h - jj

g

.~ I ..oe b h h,. ! k 'l N ( y M'[ N S - -y- }} j 4:n l i ,-f28f lb% .b Jy i w, Yr $ld% $ $!5 S, .i w -s a s-3 ~ 4lh js ? ?- ' Y Ud. Mi h n d: I l i %V egy l j r ll I ( M. b I ! i S e o - M! 8 q, ,yS:. ( l J l > [ ll jnLuis#O?rEl 9 NAE. I j' i r t k N. ? k n % 2 2 $ % F M b i,.,M E F 9 D y WK Mw j . 9l = i l ' kj, u - ..y.. f ~d' y h $ $$ % Q d$d @ @5sd M M $ k Q fp h M [ J. 1, - {I 4 bbbiC4 $bCN24 N b&d2 NN' J t $ddb A.!dShdiNM # Nb$ $ DM ' b Z ' A TJ \\ ~ n:::. ? m. v

h. ~ : In ;, v c, A J/> './

10 nn . oni:. ~. c x l 't ~ i t. o. I te, : i. IO 9 g7 .) mo1%o /5: '~ ..W %. ".m t o~ N$ pg n ~ 20185

. u w. a, v.

t. -

\\ ':a a n i...,a,,ha. h. pan .!' nien d gg y. .n .m,. nw, uc o. a r o; 45 ' 1 o ,ni. u.* Qu ?. ' t. :: r -,, ll : r' \\ '; u # < l v:. o, p, . la n c. i c, .ni nc,i N 7 iw on/v nl:nc 7 W- ' i 1:ia o ' o i te '. : a, c a u ls icJ :,

d n, i,

g tu ,.u. i~.,~,. an ' vy,, av u, .v~ f E. o,o/, t '. ", / n / /c. o o .,,,oo,o pa on" f .n.!,vi., iv a :. u~ q u a r. - ) I i vo c ai, a n E3 90 91 92 93 89,90 91 92 93' ., u / /n,,, i n /, ,m u /, %,,i ',o e,, a.. 4 o i, r - Attrntic Energy g _ . Market Price g,s n u,,,,.,,u,,,,,,,c, f, ,y Atlantic Energy J-[-. r" U. e./a, v ei. p/ ro 'l-J"c" 6"' r'mo" Earnings and Dividends Paid Per Snare of ~~ Common Stoch J. e. / w "n " ' " ' l'm>'i <i'o .'v< Per Share of Common Stock 's U 11RvlNGs . This is the ciming price of '

l-: ~ b.inu ar nu h n o.

.,n, c... Q g,p;gj>gSt>5 AtlanticEnertly' Common s Stock on the last tradintidate' Eamingspsrshare<f Com' mon - feach ywr, as ramrtedby the ' o Stax:k is net income ditidedby the Nac York Stock Exchange unra te number </mmmon shares Comsmsite Transactions listin' :, O~ s y outstanding.1)uidends paidper shareis the sum ofthe clu trterly dividendtwyments madeidJanuary. r April. July andOctober i ' puneQ e g ca, S k ', (

4.. ;: ;';.v;.. o. -,,'f T l :

. Y.,; - %,.~.. 3... ) ', f.. a.

.,

4

4..;,. '. '- : '..b ', l;l ll s : J ': '

..,..y .: - ".. ', ? 'r. n.

q ;'. '.( f. ' -,,." -', ; f ',. * ; n..

',J_ .V ;' ?.:^.. b ':.ll,. ~ ,a..,_ 4 . ; A:t }' ) ~4 ;'.:: 'q { ;..." ^ ;. ;, g' : : ' : '.- ';l.; ':. ' .\\;,. l,:, ;. J : L ,,,;.;,. ;.,.n :,. y. *.. ' ',: 2 - ; *g, *.n.. 5 ; ::., ;... ; :; : J. ;, f., ;. ' Ll '. :'.i: .A .. o Q: . {.'.. g.,[. ' n. '%.g ; -,,....l ',, z a ,9

t..

9e.b-9 7. r. 4 et. s.- .h ....,u .3... . '.... ; ;... :;g.. r *. r... y t

n

>......: };. *.,.x, ; 9 ( _ ', b ~.. _.,' n,.._ ;.g:,;,'... <. y, : c ' _. - 3.. g..

s. :..;.; (.,._;. : y..,:.'-' '.

e a...; ;,. ..>-: ;.,.i : 3,. _ ( f p. ... b s _ ' y - j.. '. _,.. '; *'. n. ..}:;.:f.r&gg'.g .g;.34.,." Q:f,

y..,_._

kffej\\....f.Ohi9&iAd&sh t,ili.1[jhiQtuptislf5$ujaitsg' y Q;p ;.G. ; j,:..%pgikrse

t., :

.,; :[ .,..n , ".Q ;, :,, ; ' [.Q[ll;.h.., r ll

l

?-* ,:.,'~..... ' ' ;; i.... p.. .l ;. .,'3.,.. ... ;;.c ... ". 's'..<-.,,a.?. _,~._n, 4 :~. : 7 s s k k OI N ,I [ .1 M . 1 f 8 .s.::...,,- s. ,..._;y....,

,, ; q.. r :.,....y-1..,

,yb......... o., ~...-.. .c ,.,..,e...; ,.l. is.

......'.t..

s; w._.. . :~.. :... ...y... ..y c. ..e. ,.s.v ' l., .f. f,b ,,. - ~,.. -......".,.:' << ;'. : <.:. : '.. _ _. 4. q >g ..; : '. 1 ;.: _ f - '- '

..u...

,..?'

f fgtklQt(tl.. l$hgf f h hh.._.f. p g.: ; ^._ l.l.;f;. f- .~ :.,. ;

p. ;..e.. -.

,r._

..,$,'... e.. ;........;..

.g y p. g...,..

., f '

g (). &$$8 9 : G ) ' ' ' ;.'.C !.., '., ' ; ;..,. f. q : ,l...

-c- ')

.'... c. : f.. (. *V.;.'.. 'i 's,. I E /l3 - ,.s,: ', I.T....;i'~, ",, '. s 1' ?? ;... .7 i

3 ' : (. ^. :.

<.) ; M % & @y% @ % & @i & H %it @ Q M y . 5 .,;...,_~;1.'.;. '-;y 'M, .z. .. l ; w. r,'...,. , +... ;. 6 [..,* /.: :.' ,'e ' q,;. -,.,,...,... .u '. k?VfQ$. t. $[.flf, ? ;.,. ll:..?. Y ? l. l'. t e.[ . ~. Qy';'y : * ;:.. 5 q ;,. ,...., j

l j. _,,:

9'.<.._ S..., n. y. _... p :. r.. }. +3 <y>.R..m ~, l - < . :. 1.. y..,... k. ; g ::,,.,;

q,..:,;. :.;

a.

e,'

,b. l{ lYhRf NNN)$k,.... }........hUhWh,Ub hh,tk$ hun ,, gf,l, T,'y,,$.(;f..f y ;b{., _*"f. ,...i.. f.

4 j' 1..;w.9, 9 s; ;

t. :. y. c,,..._',..:.,_ l l{'],:ff~i

, \\.. _- fJf *.f f:.l '.... ('.{;.pc(. $hl)YY ( W,GY.M.00Wtl..lfil qQ&... 3..

f. ' :.,'.

..,{. 3,f65tep,f95er$$, iir6. [:,l.le...f.,...:, :t., ;,.. .J.q g ,,yj y

,...f f ;

.l ..;;:. '. :. ; ;.. , ;, ;!;l'( S'.l l.,,,. ] [.

. A., './, )c.' j,. - f., ?

( .s z.. , ~. y.c 2 .,.s< .s f% N,ynQoli4}.e S $_.'.,G. 9. . '.-'g Q Q ?...s s.;a_.;. 4 m: c

g.,..._ ; s..., 3 -.

,.y ,m. ,..-.,.,l.3.. ., n...,.,-..,.,.,,,.....:...,,.s .a 5.f ; f '7 l- </, ?.' 'f 0 Y l l.. .} l.. . c . ~...,,.. '. -, g ~,, n ;.......n ...s... ',. -,.,,.,; c< ,y-f .r. it.ASlQ*f$$R $fff fhMff]Q. ,^^ ; ;l.. -[.. '.'.:., ;.i ;. 'l. v., -..,,. ?- ^? Y! E. D ;. l !: N.f'Y f. ,.l lllll $Wfffl,$.h$$ f.' G l>,.,.,, y ; , '. 'A g..-

-'., ' ;. g, '.;., _.: ,; ;i, ;c. ', J ^' ' ; _ ; y. ;L ;.,'...,<

.'..._T~'.m* >;.l p 1i t. s. i,. ,,.y ,3 .y a ..:....L. :'.* g

.. x-,.: .. -' ' '

sm - - i,:.,. ,e,, -"- >.. -,.,... l'...,. y j,..e f .f, j.'l:

j. :.f.

- If,f ?_ f E o.. : t O ..,..,'. y ': '. l. A ...... 3. i ).., {,,.,,, ,,.,,.. ~,.., 7.r -

7,,,-

.;...j ... v ,-i,. ...3 6_,,qj.,,p. f. g, - y,,. *,..... ; e.- .*;-.,. p.. a. 3 NI ' M, f [- ' I [. 'I'. ( l - -.i I N. ,j. {j .,g. -.i ' 3 [.':,

c. - [h,-

's.[* i. k f . '[ g. ' '. '.. ' Y,'., ',....,,'d [' E ',....l { ! [" h,f....,

f.,'

l',' '. {'-s . l, '

... ; ; '. } 9

7~ {.l, ,, y 'J:,

l. <?:.. L.'

L.* 4.. '. - ~. l Y.

lo.; s-

' I. 4, '; t ;v } : '.'.; * ;','l si: * :. ' ' L, Y : '

(l' V :* j.Y ' ' '; ^ '..".. ]. :.

't K ' ': :' .' ; Q.,. l t ', [ %.' ; M y 4ll'.:;g ;. fg.; *, '; ;. ll,.l,;, 3-r

a. _'l-

.;., ; f,

,*( J 'l - Y I.. l[..' ' ? .',...j' _ ' ' _ '_;.[' j _ Y L. '. ,.j,,.. ,l l hf. "f',*W h* 'YY:n ' 'Y" ~ *&T,{ )'h '.'Y .f* ,'.y,E & 'fi : j f.fl [ ', :.'. & I U, % v.k.

_ > :Yl ; ? }

ll.. l. ';

3 _; fkfk ,I (h k [.f ^' N.hhh h hns. l~ 4,, gr.../.;-[ ; 9. .7 f,* :7

5.., s < i. ".,i,: sea-

^ ' '., 3 3.m.. '. ,;. :..;,.s.- c 8., ,t 't M., t.. l...n4..e.. 6..... g;.A... <..... M"l M..I. l ' k.... k.:n ie. W... n.. ' ", './. I .". 'J. l . - _. ',Q O^ : -.. <.:.e. 'lE "jp k '. '4: /.. W._t, - & q, Y.:, it' % ' u,','.: U. } ', * ^ :..!,. r.;.; - t s s J - y .g .f. 3 .g*- 3,.

..'er'

?**,k h --.. j_,f ; .C .. l. ? :*

C i%

),' 6.

,....,,9s s.

~4 7, ; 9 i..,-.,.. .n N. ....i.... .cf ..e 7. g 3 t. . /, ;, ;; ;,,

s..}:

-l-, l f,,s s...%,... - ; ....;,f' .,, l ' ']

.,g l j.,,,,

fl. ..-l,'.* .._f.', ,..,,j.f.. hh.'.' p h ., SYU Nhk /,. ' s }, (. ..,.,p.* . ' ',. : * " ",. - '. k.f '

'..-2

<- c. *,. f.'.',.s+.,-.., :,.,.. " ' ' '- g- .,1;. ; .,'f,, ..','j' ~ " - ,y ,, f, I , I '. :l, ~.: O e l' ' { '. t..:'...L:, ; c.. W ' ';, f'. y, ;.: *.', f tn '. NeW '.'. Q.. ') ', ' ,. s h, n-

:= -

~, ' i:,, ' Nf I,, 6, ,._ : ; C V. : l...L *..,. ' ', 'g.;,,_.,.' -. ' ^2 L, ' ) .[ ':, : " y ',,l 1,_'y._._ Y', ' : & l '

... -.', ' sh :! *'; '. ;

,j') '9 [: ~ [. E' . N:, , * * ;', ;. l,, * ,'...:.:',.,r.. $[: -. '.' ' ;. L,,. -. l '*>**l'"? \\ '.[l. ',Q ',. :'. i. f ; ; j.;;l,'.,..h,.j.',.. }'l, 4, e *,. *;., - '.,,', ;l;,,f I, . lG,'.',:, : '* !, ' l'. ;. ]_ . _: ', _ 'e.);,,,' : C.'.' f.;' } l 'U : M :* h'j'L :;, ;,1 . _l.? 'l . _ k. 'u:

* *.: p l.

....'.,t,,_..,.., '.,..,. _. ,,l .,. s t, =...... ',+,s : ; _,, .qe - ~. ,.. '. - '.: '~;.., ~ r, .v.(. - ~..- a,'-. -.., p+ ' :. ...00,, y..V ,....Q.. .....4,.*_. o +

_ yj.

g._-. l_ + e ra. s,? _ ', ', :.:. s. 'g.-',. -, '. ', ' _s*..*i. '.,."..',.-[a..-)? ..'.,,1.y,: -.p %e ,..,.,"I. ,*,4 %.4.' ::. , ' ',..,, '" ~~ {,..q ' bs. ,a,,..- ..,,..,o, ',l ^ ; : 'A !_ [s:}c.e.l.: _. l _ ' }.. ,'.'.it .),. g ..' _ _ [ J. o. O ', i ~. '. -. ' I. T;_ { ! L:. ;; ; (;,l ,,f.*e l, ' t. ' :l.. :. 4. ;: 3 y. '.. Y....,'._'} a -... .^ QQ. ',3 :. ..r

s... ;,.'. t.,:.,..' ',; '. ;

1...,,.. L i. a.". y *,

t., .<,s <y J.,., ; _ 's. -... c

_c,... ; e. p ;r;..,

t.% .y , _ :/ ;.,,

j. :

.,%'j.} (.. *l*'.. ' ',

r. j,..,, :

?.. 6 :?. V. ' ('.. ce. ~l. :' :, g.7 s . ~.;._,

' u ' : ' '.. ' A: '.. '

. l ,-l'u.,. u .., ' -d: '?

X'.' :, _

'...,.*',?,:.*,- ,?.:.* '.,L.' ., u,c. - ry

(.p '.. - _. L g.[ Q;._ _, ~ (( ((.. [ . y.. } [ :. - ; } 2; n '

} *: .[

f,.[ l. *(. " _L. [.v e.;.; ; n g g, .v ' =A. :.. D ' ' ' L;,[ [ _...j -r. ;'.:g*}l.. ...I; : o c ..;y :. :.. : 3._ _. ..:.a 7.:- ll}'j . '.i -i:? : . ',.L,.A ' .} ; [ . l. : } +.: ' * ;.[:.: :'.. y.,,. :: :;: m ;... ' /. '. n:J: *.... ;,L. ' ; \\. /. ;..,..,.a. l i.'- T f, J.. C>.

W..'*l. .,,* q :v.4. -

.. f. .Y J:.a: ; v v ., ; f.. %.... :;. :.. r n.:r ; :....

Y'*;

. c % } J..,, * ". ,:...,..' y ' f.....> _..... ; t. ;..,..; ' o

v-:^ :

... ~

,.yL X q,.-.,: n i

.s +'..:...

!.T. :

2 k, i.

1. %.

. ~. T. n-

. c.: : n.?*;.,q :

. +... t s..;

. s m

7. ; :.<. : c>v:?.,

).?jdtdt$4rdtRef thisgett, $$ QNfstockj> rims!!5.pqd44rp.,etdyearehdintong.Wilk mdrho.. o.,.. ~ r..>. ~,utWutilillet. A5#f. w.,Ut{l Ni y. s.:, ;..:.; y w~ ., w : o.

,.;g;.

, :3

4y. g'r.; ; r. ;;;....

9;,;

p gwwwwgogg.: .,yMc yw.yb +.m

.. ; ~ 8 -,., +

f. x.: itleMnMdyisn/tkplmgo%.tiyy nie'rteles/loukshurfoMMIng'to; Y y; ".Wgn erenpriang OQaybncy} :~,- ), _

n ...:,, :,, n , m x.. ..;.y..v .~. .A 1 N rR$$ di Ooh Ytht? 'thrk$ e nd$i@b fe$ff fu$it ... c. ... e :.., -

-.c.

J N.. ' l

- l*

... o....:.,:....:..;,.. :

., a

..c .y. .- c3.....:-,. c... ~ ~. kfut thiureelIN&ls.inShntliesyleddqndwh4l;uSdo aboditMe bdliese nurhtrunyth wincakefrorn.hehyr.W.:..

lkkskhhh Ste%custanretsnokdsknaNnhAkrNNhithjourkranothersneehr!

,-...,.,:.<:.) ., +,,,-+.,... ,q 8 1

' m-...

~.. +g A 4'* f g *, g.2.,. - .g j. m. 3..: >. .p. .j ..q 4, .j.. ' ...:....., ~ ....,q... $rNY$b' YNth. YnAf0 h; O*f 0$ kUY0 tor 00 Of O W Y$$ O Y Us vs.tU k0 .'f % ret &, i.NisgYokrikrag! rate & merihakHstr5rerdhiiperNtes.Uattuti&inadecltkijs&tNitWl _3 + = 8 + '+, 's.. ',s \\ A, [- { . f ~ a J '.+ ,8 '+- *,_.+ f A etNN$$ 0 0\\W lI$e $NY AN blCI Q 0 O hU Y N fU62 Tft h llN f 0 M Y 'l 8 8_ .I... 3.}. N.:~.b f :l [.3. ^ :..;.;.. c.. v. ~ - 5 D... a * ['.} f. j.Q ..y' I Q.l.[j.[] f.gl. _.f,~; includen'.edubfkdorSanbmicinitiatide~to'&es&r$e r .,fy_, -._ ( ;. ;. .. - ?: -,....,, - p- ^ 4? e + .y' ,g .' w' .,"~.. . c [ g,. b; =.' y /./ v;.:;; _ y:.j }flMntic$lectric tvillprovide heutirtg a,ndcotpiirig to Atlantje City?s~ ~ [.. "... ., : 4 )}:y+ i n.- s v. :..a y,. = '. ; ^

; 8

';'... ;:;^/\\ 'L'. . :f ;,j _ [. [.; f [ ;.V b. ,;gyyggy gg g.g' jyg y ygg ?- 3 :;x ? ( -.,.

~;g33.3 ;: -. ; ~ ;... ; 3.:.,,.. _., s. ;

x_ ..,, c ; * .r ...._ ' ' ' / 4,%l. D.. ' ' ! l-l,, [ : 5 NQthet:pl$)ts [Or NgitlR,fjC.0lg in.,({Ude,d 5kOQ. }f.tg Gtidt. hl6tfd,ipphtRt c' ll P -RI, "g*l' +E* I +8 ,+,, -- ,'%+".- '.[ g Q$gy;ngyjQp$jgQnd qijkhskpfg(gyggjyfjpgjggg,gyllpyp, };. ,,g L 4 nll g) y a..;;yl.;.,y[3.,. .p. v. y. ;..

g./.;. ;.g g 3 ;

,x . ~. .c,m Q [-}ectskre4es$lopsd95fJatine$ AlegsqWettritNe(lNill##ofhegI'.j.j./ }}y

L 4 3.

Y.l[].b}'f.,..f.ff alg.+ hf.el 00l*hW?uftefw&Gwnteindustristysturger}xpkn,de <m m-_m~.. ~ m 1.m

m

- % L-9..& :. L' Q W f :.;. # y L"J ":Ol '.r.,;,; ' v G : F i ?.,: ". l1 LI.'. ? b..... ' p;. W W : ' m a:. ~ fff9 $r$8ht. ~. .f qf.l.}w. ~, $0h N Q.lh-l.}'ln}lgg 4l, . ~ g j .. Qy .m... -...... _, - .,...y... (., . ~..,. - .n::.

.y.,.

s- .-y_... ... af : '.h O hrOY$C

f. ;;,$6;f.h., ' l....f..,9,J. l,,

3 (3: L y y.;'J; }7..f $r:peeszigtnkd)tokt entikcrowin@#e ar I. .. '; l y ~ ..n gg .y. u. NM[;;.7:N=M*N mi g_ W~ _W v e @k W aM 46<McM'M Wt/=MatNd4 7... tYft V)$$N d Ofny $' t$fhU$, yhWff$Q Y f ffbQ'bth CQ M y gy y.-. * );. r n N}iQi.... 6 ..y( ', a, '"l. g Mae -..,,, '; ' I I. ' ' ' i*....**'. ), ,l',.,8'i *.g .~ Y '[i.,I' / .A;, f I 94 j t '} ,'l,,,..,. ' ' '- ,,?

'[,5

,.,,/. __,; p9,.'. ...9:,v .~. ,,,' c. g :*. ' ' _ '.,, ~ u ; q;. 3 . c 3 ;- , J. . - ' ;.;... yl. v y ['<.L.,j :--. ijf (( ; ' ;.~f s ' ( [ ][a,d: [:' . =,.., ;c...;.,.. V - " :. ,e:,. ; -.' J %. L . '.;~ - '. : L

...: L g. c L ;.

.L. b I. w,. 715, L/g. g' ' '. [. . ]..L.. [. f L '.f. L..., b.1 f. . g.;. :.s. w c.. w...... ;- v ?. m-: m. s :, ~. ' s ., '. ; ;0;., %, s. ..;v. '. ' :. } u ^:^ - . : : ', ' ; ~ ^.:. ' ', _ ; i'"* .,J ':.s.Li.....

. ' :. L... : ' ' ' L s.?.

- ; +I. : ~ " l _... '

l.

{, ^: r {. '. - ' m i f J... &.WalgenMeyete answen.'A.' t. f$e$.Wp; ape e'Me(Wafenestementeer.;b :. if w ;]..V +. ., * ; f.../.; 1:L,;.%..*'.. J y i 7.^;:-e ,.....,','.,,,,.,:.,'.4

. '=..

.. (. t ' \\ ? ',y. q..., ' * '. 4...- '..,, L. p . ;. ' ' i, [ ' '..:, *. ' ' l}, ;_, "'. ;.::... l ';*!. 3... s. l. ;,.,

_ ', _ '.,.

...4.c

,v;

.y,',.; . c+ ... + ': \\ ',e .t f *. ' U : :. _ '_. ' q.y ;_.._.. ._.-(. ...'+4 *'I +.*..

.o

..e g.J .,f 't

cost savings over the life of home. The program provides the tree. As an added bene-extended hours for customers' y 'Q fit, the compatible trees are calls and greater coverage r ^' grown at Atlantic Electric's for heavy calling periods, p j Millville llolly Orchard. Computer terminals and ^ phone lines set up in employ-ces' homes workjust like the } The combined capacity fac-ones in the o/Tice, giving cus-tor ofAtlantic Electric's five tomers the fuH range ofser-jointly-owned nuclear units vices. Data coHectedfrom the tras 70.8% in 1993. This fig-pilot project will be used to ure is wcH trithin the range evaluate expanding the pro-of acceptable performance gram. Preliminary benefits title. The team identified as defined by New Jersey's of the program include bet-1)[ '3 ((i k improvements and signifi. nuclear performance stan-ter coverage during periods lL cant cost savings to the com. dard. As a result, Atfantic ofheavy callvolume and dur-pany's prescription plan. Electric is not subject to any ing major storms. Award Winnin9 Team members pictured penalties for 1993. Performance New Peak abore are (back row, I to r) The Financial Page Established The New Jersey Business and Eileen CappeHucci, ReHy Throughout theyear, Atlantic On July 10,1993, Atlantic Industry Associa: ion's Award Faringer, Cindy Hirsh (leader), Ox suedandsold $240 Electric hit a new level of for ExceHence was presented Li: PuHan, Jiu Perna, JoAnn m n dmaHum tam nota peak demand af1,%2 i to Atlantic Electric in recop-Fit: gerald, Mary Parrish, M L Hwi W am vart m ey a u'a H (M\\t's). This I nition ofits products andser-Li: Thomas, Jo-Ann Hurley ing maturhy date betu'un recordsurpas e the 1991 rices as weH as the work the andRiesa Levine (facilitator); and M yu n. y ham a rxod oH,WI Ms by 22% company does to improve the (front row, I to r) Andy Dias, uy avaageinfant raN We mHd summa of 1992 quality oflife in southern Harry Phiuips. Bob Pavlovski o n in aM n, AdanHe didn 't break any records.) New Jersey. and Ron Migliore. Dectrici uedand oldthree Reserve margin (additional The Edison Electric Previous Atlantic Gectric aie oWintModgageBonds araHable capacity) at the Institute (eel) recogni:cd winners were: the ACT team fu a total of$225 mHHon time of the peak was 11.2% Atlantic Electric with its 1993 from customer service who Common Goals attard for its streamline'l and redesigned U".wipal am unt. The neu' Teamwork nta hadintnest rain of trork in partnership trith the ha:ardous condition report-Triumphs

' I#0 0'""l' D' I 5 0'"*h Bayside Prison. Atfantic ing;and the Morale Boosters

""0 D' I 0 0""l* P"*"0 ~ Electricprovides supplies and team from Deepwater om Hie M and First to meet the chauenge ofpeak \\ tools for inmates to build nest Generating Station who "I "0' 0"" "'"'"#'0 U boxes for a variety of threat-greathi improved safety at pn'marily to refund higher Wwkes at Attentic Electric,s ened birds. EElcited Atlantic the station. Electric's concern for the coupon debt. This refinanc. B.L. England Generating neY S ing bring a savings ofroughly Station baHied ectgrass, a ent ironment and its com-Grow on Trees munity invoirement as rea-S5 million in interest e.YPense fine hair-like seaweed that sons for the award. A group ofAtlantic Electric annuaHy. clogged intake screens and for the third consecutive emplayus found a way to The Dividend Reinvestment reduced water pressure at the 1 tiear, an Atlantic Electric saw money and benefit the and Stock Purchase Plan had plant. k keep the water flow-l employee involvement team environment: a tree replace-another banneryear in 1993. ing, an hands took turns at has won the Team ExceHence ment program. Under this Shareholders invested over cleaning the two-story tall ) Atrard for its region given by pn> gram, " compatible " or S30 million in new shares of screens. it'orking around the the Association for Quality lower-growing shade trees Common Stock through their clock for six weeks, they j and Participation. The BEACH ""' used to replace yroblem participation in theplan. remwedfour x>-gaHon drums Patrol team, made up of trees that grow up into power Home Based employees from human lines, causing outages and Business resource services, wiu go on injuries. Compatible trees eUnt, employees kept the In Apn,!, Atlantic L,iecin,c plant running and the to compete for the national retain their shape and appear-began a phot program to pown on. 4 ante without being trimmed, i representing a substantial aHou' employw to uwk from i ) 8 Mlantic Energy c n w ,n.,,--vm,e,,-.-,-,,--,-,,,,.n.n.,-.-,-,,-_-_

'..'I ",I. ',. ', < -,.";..... 4.. :.n

-[ k I,

['" f. '. *. >*;- '- '/.

j

? g_l 'f, ' '

-{ J'. [' ;) ' 'f ']. ;j. **. ,,,.-{,'l1,.',- y ' 4l ".. ' ' , y,.} ,p 'L,.,}- ~;., ' b. ~, N% .A0.,'<'.., ..).. g i. l. '* ',,q +'"yi 'y, .' *4j.Q '. s ' +,... : *.:. .g.,., l.* W."t' ,='

f *,e,,..*b,">,,.,,.s, s-e.,' <: '.: 4,

..c. ', ' ;.a ;. - ',,

s.

,z 4. .I .i 's ' E. .,... '. [. 0 ".'..'I.'. e .l.;. ' '; ' h,,U; Q...: ',Q": &,

y,1

~'; '. '. !'. lcD.::. ?..... ; s ..g

v. es e

....^.;. ' l, s 4

i,. f g. '.). N ; ? ?... ;, ;. g.:.,

.. t,. -;. j',* ';j [

l'd ;7 '; {j:.. *:...

.... / **.. .r ..I,....,- l -' ::,. -i.-.. c : -l*f.s ,. ' ' c: i% y.. l '.l l,l,l*})ii.', ',-,(,.. ^ ,,.;,.,y*'.{., 1,I, ;, ;,,;. l. :+ <. :, / e y' ' '.. g .5.,. . v '.. + -. - ,.,,,:.".g,5 I ' ( -, , '.'d ' e 'ag,.,9 ;. { 'c' '..[', ' ;, [* /;

y.

.',*g, ';j.. ',o I ' qt '/.?e,. e L. , : - l r.. ~ *. . ; {,.,,,j

5

., sl(;'6 ,.u3'.,.- ....',f,3 -,'.'r. J' '. + - .,9.>* ' '.+"..i 8, a..'- i :* -e. 5 e - j 8 ,r<l,,,.-, .,?.. , ;...? (*:.'.'..: ,,,,_V

r.. f*:,.,;,).., g a;gl::k..f *.l,l.;.3:.;:.(. ';. f.' V y ',, ;,..,lk, 7 3

..; s, - ;, ' R, _. ' :. ; * ',Q *

4, :,. ';., c,l. ',.,.

'1*,,. M'.z:

~ ::.y., t:7.,' e ::.,.

l , y. L. _, p, w<n .,._,,;,>,.,.,.;..,.,....:....._,.p ,~ L,,;... ;...,,3 y ; g . m.. .;;, pk.:'. e..,.,,,- ,,, M, ",;.i ....e... .s.> -,..c

.. i y

? .~.. ,...vl.. .,.. ;, 4 .:j : -;- ;i,, @ t ,+ .x t i - : ,.a... ::.'. fr.),0l.-' ' l' ' *:'... - L.. 6 I '..: ^~5,,. r I 5,' '. ':l ? l? ? ' - l ..Q'.?:',tf. -. *:'l '.' ., C '. ".G i' * '.? h ~sb' ' y.l,L.

ll} ::_,

s . '. 1,% . ~..'- \\- '.'u f _, ;';' '. ' *, i.. ' ' " ' ;} ' ~_' ' '.:.m.' f' :&:% ' i - ( I; ?. *.. - ' l- . > l,. : ' l: : + ';,l:$.E. :,:.., ' } !,3. ; l1 :6].

':. ', ll

'). c. f L l 'p : 'fa

v

( s'. :... ; ' ,,......g.,c. Q]-%.': b;; 9, Q. - ,'.;. : :,m ~ f l

95.., (j ql,, a ? <

."U.".,. * *:

e;, s. .. ~ ?.'".,. ;..;.l ;..,', : ' ::> >. ' :: '..l, +;.-_- :

' (',1:

,..:.:.g. .. i '. '.,.. ", < L *'3._'._'. 4.^,; L " ' ' 3 ?. ':,

, j _

:,,. Y d

, lt -['Q G'::y. '....,,il y;t..:j:[l. ; n a ' _., ' ;L ;..' ' ', ,;,, l

(t:._ [..,,.

y :,_; G.y l',q .s,;:;. :..

r. ;....,.... -.,.:

' ; ? ".:s

',9 z. ;,; l . ; '. 9 '::, : } ,l . f,,,,.[ ..'.....%.,,:..,.,~-.-ea',; y .,..[ . ': y -:..... e, ,.-...,,.*,.:,.,~>- - ' s.., s*a. ' s. % ;: <ry...,.

s c. :::,,o:-

p.v.

l. '., l. f.;; :

.,.m l ' ; h, *. .l., d ', L. - ' ?:. f:. 'n u '

...,.p, q._. - :. :.. '.

l :'., ',) ll ', I. ..f 'f. _* \\. :, '. :(:^t...'. :. :.r. ': P. 6':.:^;n. :l .!.^.;..; y, _, L 3.;; ' :.. ' ;_. .. ;J:':.. ~ '... .o1 "c..; r, -. e I k+kf,n,h..fkh.\\.Y_g?hD $;n ~?bI ,m;:) ' D. lm:?.: ::%,?: b; l^ $W _.-~ - ~ '.Q:.li h l.? !l:? i.l;' D l?fA':D; k j l 3 r.w.fy.n!#m.e.. y:.2.. yrn m.'c&ww.?.J. n , ;. w. . - n 1,;. v. n. m - .L s .y ....:.. ; y.q ~ q.. m.. ; : r :.; ;.:.. :";. ..;.:: 3 :.d: 8:- g w. 7.;;e. v w. -.h t L. _ _i.: L ;'..: :' _ ~. :[.. V ? *:,,,, '.,. :.. ,l ,.. '... *- '.:: ;;. t....;,.. H. ';. l-

P: :. ; :'. *

- ? ' ) Q.. ' ^l l ___ ' \\'5_. -;,; ,~T*;.'_... ': '. ; [] i n'-

_\\,...'.'.

^

l,; ;!. '

. l ,'c ._,.;."',;',l,._._ % ll.',*. ' ?.:. ' 1,:. '

q.p.cl ? qf ;;..;g :yg 4 ;f'.'. ;' :...':: ^

^ ' l *: '.i.:t '.l- ['.;n ' %s '.e.... p

.\\ '. '. f... ?;.'

'?'. i p L,. w,._ " L 1,: { f;ylIl D[$ j} : Mj72]'yC:MmW6ts;jntgrestep $ntattiltjesWis4 '.*,]'._. ,..;_, '." ~;; f,.....L

,/..:.., '. ::- ^ ;?

.,3.::f. r l p;.!,.{.; D C {h ..A.'- . ~g! g:.;'.:,.?.~. y 4:.: y .l .32.j.fi$8.jiF4M4iMthesi Mininghg Andbe 4,$G. f.(,f 53.v...nwe; 7,, M ?t%.fk ly W M i @ W ' S Mb yM M .e QW ggw y.yc;;,.4mmsamu, w.mo,n.mx

y. r, i

, g.. c i 5.. .s.- a. +

v.. ".;,..,,..

.f. .e ..... c s,... ..,..,...i.. v,. f.;., f, ' li' 4 7,_ u4. D. '.. h. 3 Wg:M.....{ C...:.:7. 5. ~:. 9.,. m.. W.., M.. :,,; D:,. J..,.. 5. 4.:?%.. )e=. 4mme, s*Wa%o~,, weW.. W.) . k...,p :.. ..,j.

s...

m.r .....w e... s. (..., . v .u, c. ,.y:yLh'by..:'g, %. u :. v:r [.&. h..;s .:.. s.;F q. y:;..y_ i. ; ;.

l. ? ";.y 4.. :.,s.l.3

' ',L ;s.'g? L l., l._'lQ:. ) ;l:5.f. y.:..l;;; >.:. T..y L q,.. l'. Y : ' fi: y,. /.:::f:n;,f,,n, ': y..? ?. .y.; 1. c m: /.'...ec .s.. .s s,.,:.7.. 3:.. ..]. e.. ;;. 9W

9.. c. :..b : s.;: ^ v: ;.:; g. :.. m : ;q,.;:::r.:; a:> ':v'M ' ^:':::7 2 :..

.a.:

.....e....-..

. : c ;. e c. .s.

y -...

. :. v : *., R:.:...s ' : 5. : ;

):

4 .r...;. 4 w a n a n n;. s y % w m % y wmn m=ggg M $g y r m a ; w.n w y y @ % A WW m un s@.3 d $ s. O N 6 @: gW$g gg Mz dDMdMMONWMOkliiN#Nt q.y g:mg p m@3m y g ge*,eepe% W9. w% M M msgingeh eg w WWW m... z...., wg g g a i= o m%... ,,? ,' '.y, s.. f '. ;. '.. s..a.,. > <.

n. n/.:... v.... p.s.;.. w ->> m :.,, m.....e.g..sw m, m.,ww.....y+.

a..,.

.,.,,,...,:...a,,,:.'.';......,w .s ',.'",a,..,'.i........-.y.. g #, . u.. r, ',/*,,#..~ e.* ,b,4., ..J'.,.., ', I.,..'a,,',.",_f. /..,e..

.-, l.

g,,..r..' ,[ .E 7 j y . i .w w.w. w "a gucce u% 3:gg 9y;%u w. mly&ihEMAtQJ>>l .; ;p .7;:J3 p. Jin g a m p ptngn w. M s m y n4pswie gm = y w. w ; f. n g 2 :p m.y)l;.p:.n%... <%x.wgw.M p; w. ,m n[ Q Q;. ./ y ~y O b M f. Q. (( .. W M.ur ' m y m.%.g;

. n. _: ,... n.....,. o :-........

((*-) f,. 21.. '__' '. '., '....,').,..:...-,. ... a, ;n.., > ...w. ....a,. ~,.x.... u....,.. o. n. e . p '.....,w+,....~,.~t..n.v...........,: .g d *

[. '

{#,.;, ' [*) ,';h f f '.. ', ; $,,...:l.[1l: '[.l.. i f.; l'l?f,.f lf .l-

..,'.,....... ' '..., '.,,.'(.,, ' ',. -'. ',,.,'

'[, /. j .) e,. ......a.,... '. '.... y. .. ~, .-.y yq;. ~.. ..f: ^f: n;.l...j;lk.. w [ ',' l.).' f;.;.. ll l. !.b.ly..f lp. ,.l[ l.' p '. :.... ;..! - r

%... V;;:, i. J ';. 9;...,. Y J'.

A; J.> - b...;.. .L. %". . r '..*;: s. u p :. i. y tw;.,, ' n; ;. -. ;. : ^ v.; hl ^ ! ' h:. : ; % '.... :.. c.e .:.

q, :s...

1

:b'.... ;

,.f.);q..r., y ;..;. .,?

. :. s ' < i ;;A.:..a,g ;, ;..... :;,.,.. ; {:.., L;. '

.n. ..t.;p;. ". q:.,.,.,. ; ;' e'...: 3 ;q u..' : .-. ; (_

b., ;.. +

.y >...,,. ' ; L ; m . :- ". r:: , 9,... _.,,..::.m..:. ...... Lg ~v.. ,Ae., ^;;.... -.,; r. . p. ' n...>. . :, - ::.. L.x '. " n. p...;._ Lqy ... i."h_ l. c v.:..;. i "{.~ . _ n ' ' 'f..,.;h }p1

g..,\\,K );.:. _:l } W.M. I ~ ' ' ; Y ;;^! ';l l, j.L,:l'.) l ; b ].)..

5 ?.h f Q J' ' I '.': l;

;z..

hI, N nll ';l ~. \\ ,7 x l ('j ' [ a D c ;% w a ad jg : ( J e. p{W 9{ y h m %D cy w; W lWl 4;; e i h; o t3 mgem ,;/0g,,,. MjlpDA A aw." J, k y&S d V j y W jf:ta 7 ~. ggg - ~ M o %(. C

d U g6 M = i y.fN ya y n gg ~- 4 g w g a .4 i 6

w n

,,7 en 3 _ q n n,, 7 .,$. D. hOlk 5 l 4 .6 t, w 3 y y x 1 4 s e $Q5Mhl, $^ [ f \\ y s.. ,w id.; p M,_ : mgu - M .t.. t m f l ' E ~ 4 3 , di i a s - s i a2> n J f'R h a 1 1 heidn ',x i."

3. -

1' h 1 y m h ! ; g$, 9a

E " ' ' I.

'u ;'. Les l 'i a u p,[. 3 [ a E ..e y,_.ag ~ ~ k pg !. k; ps4kgga.entk.k 4, j' w p' nr grdh ~ -e '.,? y y- - w 4 N s h A $ bi & "' % '

N~
?8 A

M b &' Y~ W( onh;istfL 2*

i i ? %h . ntedfol ? y q 7 $ 3g y e h, a p a y p,,!aea y m sa w )w w w w w t y v u u s a : bhbf k ft w? M E N +u N _ nam $ $e ) a@ 3 N h namp n(.( sva r N N6 i umz su,m.uunt w r - 2U I w n ;e w-e y vyv a w nw 1 ,c g"q# g jg g w' yep ~ m l, C , I +f ) g " l N ' )gjl -- 'g ~ 'e a Ae [a<4 X. M. a.a. W.. j ~ 2 t r c hky "bathnu ctk,/M[h f,MEl y m r $~f ! $;k ~ a g n n ,^ ~

ei ',

1 J 1r W I i $] 1: 1A wlL [h'i jhaninesbit, ilya fonall:s 1 ere compet $. [ . on: [ f1 M i dpf I-

m a,a,msyg~,ac, m u-u s-xunu w

3gy77 rg ay w'$ ' R. y a s ~ n E ? I. w u

BlBa,B,IBBB,E ilR r .w-*e %m'TN[hQe0 HWY INiMated z z L y sn e pw c ,y# s ke M%N E V 00$ \\ . WO : ' J ^ Y ~ ~ ~ ' p hk w$as Asar#,1 t >2 at +r aa 19p appC Z 45R$$MB E!? . m c 4 ESI ?4 - 1_ 4 em o ay u g$$NW$7 O F L P P 4 '

- il i

i 1-Win %gd. : ? ~

.O.

h W$%uyartG$10;#ner tudt W< Qn. _. " * ;......L c h)gfMMi

.ni... &I&

5 w. N. . v ' Y., y, ,c

b. y:

\\ v m[ 2 + n e$ n A r m, w-g' Q $ q,1n 07fklO Q U 5Gg t! ^ w .a n tJ$4% gagg >^ . + V ' S 'E 2:c ~ m' <hl,ent 31 .O Qd. .I.

. I ; R : /. ~ '; c;.

.f i .h h. 5 9 - %c.. .-9 ' e: s p u x l . 9" rim ' ktr

- l

.e. .O'<.. m e+gg. a uW ~~

4 Y

Y j ji ^k n'l .[ fb h kih a k M m,,a,,_a,.Q.QW ~s.simgp,igHmn n w&gg.yj ~hpge$pW ~ - * * * * * " * * * * ****** o m 4 C"- Jens Sleush, director of p.urchantag -j gg ! Nhh Nk a w R@maman[h5hfN$ dss $bnitausnighek ' MW wseijiGQW$95 $i i. MN h M M N m.,S W 5 d & g , n!" E l pa. B,B, n W5MWM.,$8@n$$yQ,m M,,,gpER E M ae a y _MW R E..R. T.J-n,M 7 T!sV W1N

O44 pcsa a$WTM$,.$oy,,,,,p,s,,,,Jypp,al,y*W..

.d.gp 9 c le wo w g g ,.r h.h..h,"h*hh N h h he h a>> d r u d r ' h.,,i k fffh +h 3 a u &. h f N;. e, . N h: m, ~ h k ,Nh.aR,s,iMESER W ^ u,N e n w ,-a ,h B R M E n usab hw M ~h, A T,RB2fi h .h h k a a. n way e

m]J'e needed to replace the old lighting in our parking lots. But ice u ere on a tight budget to get it I l done, 'said Les \\\\'ilson, vice president ofplant operations. "\\\\~e got some costly estimates and asked Atlantic Electric for help. Through their Night Guard leased lighting program, u'e u ere able to get efficient, uniform lights that really improve visibility. ur biggest problem tras tinding an alTordable pole design that matched u' hat n'e already had in some areas. \\t'ith a lot ofhard work, Atlantic Electric found us a great alternative. Nou', all of the old lights have been replaced andice're getting more llght out there for less money, 'he added. 1 afety was the hospital's prime concern, especially fi>r night shift employees. "Before the new lights, we'd wait for security or other employees to go out to our cars, ' explained nurse Janeen Buirch. "\\t'e used to tralk out in pairs, but in LN some parts of the parking lot, ~ you couldn't see cach other very well. " )uirch is an enthust-l astic customer of the ) [ 3 new lights. "They make a world ofdiffi>rence O' because they make me feel safe. Even x,, t our patients and t visitors hare com-AM'e s mented about the

lights. I'm really 4

glad that Atlantic Electric b and Ihe haspital worked together to brighten up the parking lot. " u i . %) y .\\ lh \\; ,- 7

i i n our 107 years in business, we have been a source oflight, heat, products andservices. lYe 're an employer, 4 j a supplier and a buyer. Most important ofall, we're a neighbor. As we look to the future, our success will come from being an integralpart of the community. It requires us to build a j basisfor mutual understanding-common ground-on which we allcan stand I 11 [ do that by being involved and accessible. Nowhere in our area have we renewed that commitm i e l l 1 more firmly than in Atlantic City. Earlier this year, we re-established an office in the city to be more i closely in touch with an important part of our business at a critical time in its development. ver the next few years, plans for growth in Atlantic City include the addition ofa new convention l center, new and expanded hotels and a shopping and entertainment l 4 } complex to rival ones in Baltimore and New York. i l That amounts to over $1 billion in planned investment-- c> the largest economic development venture in South Je li' hat's more, it is the first cohesive etfort put forth by city and } l state government, business andindustry to make Atlantic City i 1 a first-class destination. l tlantic Electric is at the forefront afthese developments. On the business side, we willbe providing heating and coalirg to the new convention center. On the human side, our people are lending their time and expertise to many commu-nity organizations, helping them grow and prosper along with the city. M One such organization that Atlantic Electric has teamed up with is the i b Ananue Energy

i,Educationfom"pattop! gg; f$yp ,n,det '> 'systdfWlenhdhssdM 1 g (Atlanti' i. h2;ewish 1 mmqm$$$y y$ AdygdgQgwi dQ dhh p g n' /hg dfl$j x [in e p est ~ i{ JhQd@ndsNok!unfC s h5HiexplainedNh t)frja g N ?y m e'verghis nnfrig%tleri F sy a g te$ 4fo dellbnketh Qnctajpnd umakreson x'nn gfsc .s a 3 nu, 9 m gg

ap y

. %y up y w g x -- M gf 1pariety)W h} grams tat 4) Q2 y 3 Jw s vA. re%,n I ns nk . nonne',een$an:etaan% A .iima ,o s u y ' 46 d i 9T ?~ ' pro *$ . W e s c2 ]

emsvery mkontent p

'aum poto . Inm ,t. d k be b kstrbidr5undteacYrs ,akiS6enene. ' i j Ekk WW lV ~ Nh JQu$$$edert sit farts $ $b & l J 17i pri ! her t endi t t g )h; Di$ 0 epungh !alowth f ellegeku. . r,; serk

T 3

W h 3 l v g e n; 3 q$ $ $ch m$ r IIk / 1% erstespunnett& ors Nd-3 k p %d .dti thc hjhh'teseentem6:hhhk h As helgdemohors staienteleurni V wasummema,s:i mmwammumame emm ensn&w kallQt%oingthind abdic@nud d ' Q M y$@% n kMSF $F4 g f lf Q Q @g 4 W Ej)P M $p K g d G%ppsu ~ ritimpres@sdylth)%fWQelekerNrp At f y Q4 jh fgElectrichayhpwnito j $fetindatt m nytd MkhhhbkhhhNlheYqn { kf gkeducattonal comntunlighdidJ,ewigTheybelieve assfy hbhMNhhk M!$NbMh$dledupation;is;to everyone%@ $ eidoJfhat:provihp quell $M hh hh hhhh h h .beetuintersetdtebuildeabetter4rdme workfo ceat(strorgerqrsu %Wommunit/nnd a more: vita &c'onymyg# hiQWNitkiff{f dhNhhMgh NNhMMMNbMM$kh@ ( d%P ded340 I $ $ x$ - a L ~

.,a f i i \\ i i i t i l 4 I f i l } . re. $ f ';- th.~.,, ~-' .f. s..

.sg;.

.e i m ps p& k 9 .y ( ~ ' i ~ ,e u I M i l cW CH <~~~~~> Q w

M,B R I E, h,a r c ; u y,A, a ta,as g 4 y p n ;g;,7 c s p3 y + v s ..w. n n' "y gp5HE. 1 x qu n. i Pa c

o p ($ y e.. y l a y

i.w n

gt,,3g - - g,Q4.

Je s + 3 .giw 3 m ~> g p 4 y, g s g ** 4,. L %\\,L hi bW$}2%$~ as 4 ~ $Y 5 ~ ' hg., nebjQ}sb* f (m i ya * ~ %" o~p4 _. $,os too *e, 31;cui 'me g or j gr 7 ~ g y, w, r .m a wp. i. k w.' d'h.I,,., i< - .8 3,,# 7 f. m l 'n t emy c. e

l' h

l, hhh h YN hhf %n a, - + g. n,+ w +a"9!g g l F Q "gp ' aFr y & j kJ h h h rh % Tf ; hg@E;i;g! J${$$lf ;""i.. 3s a! Ml$$$$$a$$y$a$u$;co %. h .c y arecA, : niscSlectge o v., aim uun i w.y.e.*.6 ph hWg , ~..,ugu , NV ', y I i,

W s. a s y .,JJ$ it ey ,I l } l b g

tL J uma

~ j i j "pyg~- o! g ! ]i gh. y 2__ s M l t : I 4

3. ;...

tj 1. O. ,. l. ? + 1 i V

~

q I ,c-- m _~ f-N'l qt ewt the . 4;"

f j

s- _ g ' g( n gy, pe 'Il l

Ittt M1l,

[ .. ^^[f[~:: no ( g e k lin ? R, i ^ c ri..n ( y . ' ' ~ 4- - 7 i, [dMa .-.q f ~ , "", li '} 4 t, j )s - 3. egg,94 ..,4 3 [. g. a. N, al ' 'B6 ~ b 'it ~- 3-- q n . sp i

*i.

h l NO ., -- l y. 3l n i a, I j~ g 3 4a _7 y, - 1 se (m j 7 7y ._;. w a r't 6: sir i N h$Nf3 O .. M a v,

= 1 3 i un hese homes are etticient and clean. They cost very little .' Q $. y m. - l 10 run and don't burn any fuels. There are no emissions going i into the air or into the house. They are also safe. Since there's no llame, you can locate the unit almost anywhere you i like. And, they take reusable well water and exchange l l only its heat. They're good for the environment 4 i l all around " he added. nT1 he people who've bought these homes y are really happy with them," Gajewski l remarked. "I've sold quite a few. Even dur-l iny the slow real estate market over the l l last few years, these homes sold l l well. Ihave a few under construction i l now and I have plans for a small development in the near future." i er1he employees at Atlantic Electric are a great resource. 7' hey 1 give r:e any information Ineed for people who are interested in i f geothermal systems. They also put me in touch with all the right i i l vendors and manufacturers so that I can have the latest I equipment and expert advice. Atlantic Electric's pro-l l grams are first rate. I wouldn 't have come this far without them. " 1 1 i

s' 3. s . / _., }. $ f.', :N,. ; :[. - l ' ;., L ; ;..; L.. Y L }_ - y' .l :'..._..; Q : ;. : Q. :. ? ~ 4.y '_., }. q'

.f..[. ' ' ; 3., c > -, a: .;. : -. ' n :: : '. :~

O 9 ' y, R'; ....,..v..(.: ?X.. ;..Li N. J: : .c y.. ,,_ [ f.;;; n'

G.,R[" 9;;;i,.;.;;q p; ;.; };,.
. ;,.,. p,, { 7,,. ;. ;;;;; ~

J f,0.f 4.. j.. f..g . ' :-. ; ; i ; ;. (.. J..j f,.,. 3....:: y,,: - - (,f 7.,3. J..s... f... e. s,., y f y '., y,,., q; [ 7,. 3 .. g... i :...;[..... g...; :q l, b. i. :

y

..;;;,; : L ;.,., "- . f ;%.';i f:.g.:5."',. .3. ,..,.. s i.., n., c.4 .. - o... - p

,....,2,-

. r - n.,.,. ; 3 g ; . ~,..... ?..,.. ;+;....... ...;.. g. 3 a...,,. g o.y ) ....g.,. .y. ., ;. 7... q..,4, .... ? ; ....VWff.i.. W.) ' ? j.,. c. 3. ~... -. :.. ;.,c.,.. Q'[h.t&f &.. &..;f. &&....l.i&. ffl!g .. _. ( _. p.n,,....,,;,;... ;.... ... n w,;. ; u Y,.l;f[$ &..g &,,) j.d. &.....&. [ ),Q q ;[th { Q,Y.4 h.{f' : 4: ^' c v. c N i' n.,. .._...;., ;.... f.,.., _,.,. "i. ,,~. }, ,5 [- p q,.'{- ;,., g ...m. p..,

I

,[, p

f...,
-. 1.,.

s b [. ,,;.~,..

g. ;..

.:q ..v,.. ...7 ; <,,; ' a. .c o. ....'lh,Y fh. ).' ..p[ ( ll[ f,, y t' {. s., f, f... l (f..... z .L % 4,?.. =. h. f... ',; h.,. . f.j.. s ^ h _~,,,...,.:;'4., J,:';... ~.,, ',... [ [, I. L_h ~%- ,. ). ..[ 9. L, l < *_ '.. _.y. e, ,,1 . } ..;_ ', i "l:.. s '..'.g,7.. ..,. - ;).- . a: _. '.....p- [;5;l... 9:;'W. p [.. ;., ! ;... _.. ; y of, : g.7.; -... 4 .;-.i-~: 'l, [,,..- ;.:. [, ' '. :.. ; '; '.y y, @,. ' ' _ k... l.; s,,,. .._.,,~,.'_~,f. Qf. R; + ~., .'v...'..~,'

4. t.

,....3, t.. y. ;_., '.. .? -q . _:W

;.' q ;'..'_=,,,',...: 2 ;,. _ ; :. _

, '.,..;,.;, j- .) h.f[.ff;.- u~ ..:) k, fs k i:,. p. ' h ., :.f.Y.h j.D." n..{,

i..;[ *[h. h, '(/

~..,f ;:..,9 c ' j. ;..'?..q,.

.g... (c: .,

. h l..y: ,1 ...._.,..,.;.....'..;.7. (, . hf ; ..:..... _.. y ;;., -_g~

i '- (f

/ $ *].h /k / .l 7 c-4... ~s -r [ ] ' ' j.- 2.':z, ','.[ i [.,7 [ O . + c.. m . : c n ~:..,.,.k.R _.. - ;

..c I'

['. 'O. *. i ' L 'f.'E q's . g. ;,,$ 6 5 G ' i. N .[. [....' i"-, _- 3, y ~.... 3....,,,,.-/-., ,..y.. .a'., ..y . I ~..'<.:... '....",s l * '. ' 4.. - c. , ::,.) .. ((' ' ' '" -. ~.. . s ,.....,,s. '[.,...;- s.cl ..., ^. l- ', ; ; :;... e.; '\\ . ; J ; >..., -'; " : 'l .;c,_.- ' f;

_' j ;.l l c -l. I:?_J
l_.

: l.;'. ^h]:* _.. ll.._;

f *l ' h' ' ?h' k...h,p (:l_5 O J W W 1/ k hf W "h. & lb ?.$ h &.h l k h 0I. D P M. @h.f \\ :; -. li : ' 'x ;' l ' ' [ ._lf. A, l ^.l ; [.l .[( _.,-,(?^* hh .'_...;.~._.

3.;.

L. D . :;._ ;., ;. _ z....Q t_ u+ L :,_ *_. ' ' ' h. :,.:} ' [ ' ; } " :'.... .f _ :! - ', ;..,

y. _': l'a j } -. ?;, ;,' ; ;.[

.s ^- ^ Nl~ .~A c.' ,.c,.c.,... . p, ;. ;. q %:; '.;;,.; ).: ' '; ; 1., lg.ff$ hkYly'ffh.h. m. :ik f. fkh,L ~.;. ; 'h Y.0h, h f,f f f ~ j .. < ..,j. n.; ,lf .+ g

' ; ',, ;.[ t'-

., C Q: l% O ' }. _; l }' l u Y .l.$, " (,'k ( bkb 'qj:lf h ~....f,

y(

~ _.. _.., 4j_

- '; '. - '. ^;','...;.

i '. 'c: [ ', ' ' . t. r ). 7; ' ?.."_' l j..... ' +... 'p }. 4.....- 'Y ': A ? 'l [ ; _ [.; ' ?, p

?f 'ih.[l.. l_l, l $ j - l l.!.:

,n. .: ~. -.:. Y:..L ^ :. .k J.[ -*', ..c a.. . l. 0. l Y, j )Ihl.!S UYAN? nh. ..s

-I s.

. v.. ..' 5 YW; f \\l!:. ... :, h &, . u. : ~ f i. ~. ! Ylh E.$ i$N lY fk 'f.j-f]: t. .f.h $ Y.$4.? i. i ~!$;. _..... N.f} l.h. h. ' s /, x ,. v., .r. .y .....- 7.;. ; ;. g.;_ yu;;, 3

x. y.

~ [_. -- : w.- .;. s > ,g .m; ;... .v A S. t, %...:.; ::n ~ Y.O\\h&Y. j ~ ' -..-l,/.]l;l.f, ;m.1?f: :Hf. ;$b.f fj.f'!. L&h jNf.ty?$c,h+ h. f,Q(Ih!,h ,n-

e. (.

n. .~ : Q, :v. j ; 7..,...i:.-- / ,.,. ;; c.,,,. ~.. ;,., 9. s.

f

. /.. >

s. _; c_. 2 .v . a[. c..,,py, .7,. ~., ; = >. +. o ~, .. 3 4.- 4 t; - .i:^1.,. *.m,,.. ... - <> i f -[ 7 I' [ ' .w.,... ;. ; p.;;. a -, - -.,. ;,., _:.,, ~ e;. ;. ', L ~. ' ':,... 'h.. n.;.[. ;..,.,;..,...- [. - v g ..,...:. x ? ce

. e,

..' i' i t .;.. :.. a. 3, g. ,-* ^ -,. t [. -jIf,. *' + a.,,,; ,...r. e.. . ~.. ., ;. _ g. l y..,..., ...r, ,.1 c. ., _. '..:,,,.,/.

,.. y u: .. -

... 5- .,3 .. p,. t. <l.,. '.:'\\.. '_ l.:,' / :.. - f, ;-2-[\\. .. G.'[ 3'^.*- .b. :.; ^- l 'j '.; j :-.. 3 ;[y. \\ _ '. [:__ .'}' 'l_>*. a : :

y; s..

r s 3 ;.:.

._.s. .' ' l ci, : ' ' + ;' - \\.. :c' ^ ::... y .~.y:,,,. .._q _ ( - e - , f:(: :: }, :. 3.:' ' ' ;; ' '.: p;f j.f _ l:.g 9,:: g :::p.n. 3 i.; 4_.;.y.

::.,;. ! - ;. y
y;

. 2: . ~ v,.; - e. T yt ; - l n ; ; ... 4 ;w; c. - M:/. %;' ~..,. ; Y: e s.': L L \\'. s; .;c y.. ay. l _4,< - ;.M

.i

. ~:.. y. ;. :: : e, o, W;'% ;,; j '.- ) .p;. )'./.pg.C ' y; :.s.-w. i. QL., 'f.,',3., :. 3 .g'y. [ ~.. l ' -. q(f.c;;.4 q v 4 ..,.. ~ ? f l. ( V

.'f. ". N. '

?., ' l . " i.* /..L;=.. v.~. .*_ f

.t

'I l

*.~ l,,;l j, '

. -'."i,

,Q.

.=., G .'J'.' v s ^' f. 4 'l 'a

w I&~fL '

f - p.: gg~f Q ~.,YW'f'* 3: ' 1.' ?: ! ^.j',.. ' j : j _l ...x wx g s, n i i:r :r: +L I, =.. - s. 4..,.!-. ..h lW- .: im n e:.w>., ..~ ~ ' ~ ' 'E L

f

,e - ^ :. '( ),7 :.; _ ?.. c, r

.w: y. wl,b,,y

' f.1 1 :[! O W . ;i' ? L > T ya +-..;. 4' .:..? .3 e s r, '

c. -

y :.g. 8.ay:d. 7.. _(

.4

.i. [ ,. \\ ;. ., e.,,m. * .r c.. g ::a..: ' :.:9. j.. . s.. 7-Q,.. ...;. f. t ', R L. F ,:..~ W,,4- . + 6.,... ?g:;: v g:: p;. ,,.s. Y ..l ::. '. l . f* [: '.L 'l' .) [ ,)_;.; y

, p <:~.c - o. ', :_ j;g z.,.v.s

. +.... - e. D'.,,,.

s

.. : - 1:: ,v. l 1 ny i' ll. - -; -t. x; d ,.3.[:oy } [.:, ,f.:,..;;.;. ;- xy[.(y gf;f;;.fm 'N '.;y%gl;v., . ' '; E, [.l >'.l $ l ' l 'Y ,..; _ y (..,.y, f.::

f

.. ;i.!,:);f;:..[.. ~yn .. : :.t ?. ~ ~ : : '. .2 x: ~...% ; p-. %;,7%':p.;.., / ..c

. y cy.

.. g' / w. .;7

^;~

7,, . 2. .Nn. . - :. ~: > < ~ :. - > vv

7..3':.a.W.7.

_ Jh *.,. '. '.,. - ~ ai y.. ::.. ...:.. ~ a Y. Y!.' w: :' T' , ; a:. ww;:. . y<:. ;.... - - * ' [, ;. 3 * '. - 'y;, %

J

.:+c: : . _~. J

l.$g,. '. W..G,sSf ;., 'll ':'.l.,.~<l
,y; r v

.V. ;; ;::wl:n : ~. _ v.. s 3.: :::q.y;.:y :. 'e ~ ~,. :.. 3..,, ; .z;.. ., 'f

L _

[, l, . 3_ ,. ' m m : L. L.' y ; ' e ;., ~. ' '. (; t .;.. ;:. p..' g ?...,w,e _:.. g ~,. ,4 y_;3 M; ',.(

. ; w s

OT L D :.: O., p... ..{ { l '. . {. ] ^ .? [;g ; i y..:L :f, p % .t ,,.. y., 3. '-(]{,- ' 'j.. 7. .,.-.",J, ,l.- j ;t p f....f y ,? .,7, .i g;:, .}l . t v : '*" :y, ; 4., s,. ul' n r h

s. m fI...

o y ~ . m m.;.::a.u l .c! .'. [ ],. j + 3,'.. [a - y; .u g. 3 -L.,.,. v: \\ . !y : -: e ;

. M;,

4,. 'K'[ ;t '., .g . -. K y.n,;.. c j..., _.. b. l}iAW ,. g f.1;[g l ' l MlJ. ? [_ _ ~f. l* y. h u '. ; ). .' / hg.liY $l.?( /j.

; _ _?

? s.te10 Mrotseen seawe Jonesiden >petakse, Lesette mirre. seere6 hegne ' ' [.}.f"i ? & N Date ~ e4eeeay vedre rews Jones sesmosen, Laura s(sesiniismimus #sas. ~ -w!. . s m syn w genereysnaiew Pet meerersenFeurth reen te.einermesfero, Peteroemissees somepseA sis s' - " ' ~ sJeff:$ thio 6549een Ungst : 1

1 _ 1, j+,, \\ ^ * 'N u g. , ' f3 gg (. [ ,e ; } ' # i 1 7 s l 1'.

.y.r; g

..('. i - 1 -r g s \\' _s \\.- 9.- 'l j. 7 .page 18 'a t vj p.., y....,;, ^ 4 + . L. s {. ,., yg p ang e 19 e - 3 .I k., ' (,. ,] r 4D .y 6 .g, g,' 'em a,. ,.;l5, p.n ye 21 ( 121 " J - page 22 7.. c.j, p% 1 4 nn og 3 1 mummmmmmmme x,.. 4 I 3 t h ' l,'?, s W v. ,q .\\. -,.- - ),t,.,. i. t,- ~ M. d, Q-t 4 x q,;.. -,m - 'I 'L i 4 '5 1 4 0-d( ' Hi[ ';Ip'f; ~ g r <x q'. a(:. e t s 3-;.

@Q) 9 ' k k#' . $9, ////' IMAGE EVALUATION N k//77 i* $hf* TEST TARGET '(MT-3) /g gf)ly[*4 \\ / p! g pjjp ppp + <4 I.0 lt; M M M 1 {l 2.2 32 E ilt l,l hU lhlN "~' l.8 1.25 1.4 1.6 4 150mm 4 6" 4h,*zzzzzk//

zzNza

+ 4 \\g $" [ ) / f ['\\ p g l 4'6#hhl,0 PHOTOGRAPHIC SCIENCES CORPORATION W,4 h 770 BASKET ROAD Yf'h' 'S'40 P.O. BOX 338 <j{;, WEBSTER, NEW YORK 14580 4 (716) 265-1600

gjg

fh O

g8;h %k [# [ / [ [j + ' IMAGE EVALUATION ih /// % h/ TEST TARGET '(MT-3) \\ y// ///// ~ + r l.0 !f.f a LB C IO llil 2.2 t~ lilln= 233hE 1.1 l _1.8_ l.25 1.4 l 1.6 l d 150mm 4 6" 4

+<$

A%4 h ,A %[,JG/,%jpj,)zzz, 4 i ////4h o an*S. 4 ~6 g PHOTOGRAPHIC SCIENCES CORPORATION h d(O" jh 770 BASKET ROAD P.O. BOX 338

?g WEBSTER, NEW YORK 14580

'#O (716) 265 1600

2 AST a; - " e / 'i. + ' s- %, $ q+W" ^h'W"W* v t s s w wN n;, r s... <r c -r.. ?:: (- ? J; a [' t bD 111/N $

.U.'

gt < ),9P7 r9. r v l %, S.@,._ 'f p ? I YsChh;l 9l ~.Y ~~: en.,, W?.fy,Q 4 l .%;. Pd. 4 j-[y.. b r t - i, g

i W%

s,~,.. 'dd s 3:Q w L,, .;u ^ ^ r p b 1 q g d.# c N. W;q i.m 49' fmmmmm + =,n a,c M M,". l-w}N e.d 1" r IP i..* li1 rp. ^ J r' , v,( H.P t'il $ <- C [ ( -(' 4 '~ t.W)/ 3 Q, s. 6 i+W h 4 ".'.W.s l 3 1 a c l: l .v . v. .f. -g....,:,,m I?: l:. ., }$ l ., l .N M ' lJll

g W.o s.k...,e,es.... 3 %n, hc 'Ay 2

h .o. te, l S*. ,IG y,i ~,a.,7. p l. e, j f",y %. !, 4S.l.,) ' O O.lj ; Y' ( c.j.,.,N, yld; =

3 t

w. ~. n;,,, p ?.' d y?c.; y. <.:&;.f 3 y ?.p y ) ~. j q '.?,4~ < ..l'

g,.p12 1.,.f,7 })..;-,

S g ~ j, -. ,..,,n . s:!.%. .+@,. t x:~ y>,, ,.5. ;,.,.,;.,,., -,s !3..q.., t., + yh &.....n. .r,. =.., 2

v. 9 :.~.

-g "vy % s.g>.?. i .h r .4,03 ~ : <., ;. i,,, g...... :;,;,..: ; y,s.0;..',( *y..; :f_:,.; p.",%. j.W: * '-) 9 A w.W. .,.. x, . ~. r..-

e..

v.4 .c r .5 A 4 .... Jg.. ... ' 'w',,Q. v.,..f.z.;;;2 $TQ g /g c. 3'S, l; A ',, ;_ g; ;.& ;(.)"c. g' !* .-m < 4 3-.. g.%, v, w 4 4 y 1 ,,, g

,.a.,

,.e..:. -,...,,.~#

l ey

.+35 ,.a.., 7

c. s.*.,..., ptn...

.. ~ 4. i *

.,t s

1

a. '{L (.,, j (,*,p'. ] *

, ' "tj() ? ( ;.,".11.f i 4,, ).. "4.} } ' Rj

k.

w,

W: :' L 9

i ^T - + n..,.a.~3

....,. g. '.>*,1

. q.,,.; r.5.c g.. 4'. 3 n 1

e ~-,.

.; t,... >7 ?. 7: ...A. ,1 .? ... g. ;,.,.., 4.,- c.q,y...'., ',,j y;; 7 f+ 3,. < & qv - .. :.,....,r .e w .s n.- w, I Sw ' i %)....[.3., sg t3,pq3g3 p3 ea f.s ..-W,, 49.)..r,.y.. g.,,3y.;,,. g ..g e w ,Npg4 '.,m. .c. .. L-.,. - h.'.W. ',: ~.Mr', i,,, f ,4

n ",

M[^ /: 4b:./ ~.'.l. ' I I. [ -..,. n ;)3 ' ' ' ;;;,,_.,

D If J / '- 7. - U

d eC
Q.Q % % : -

"p... ; 4:. i N '.- f.%j, M P / - +. f gJ .2 s ( " % ry..y.3,./ _. p;;:n i.j !W gc. W.:v. n 4. 7 mM;.;.fl.Q:.2, s '

P / p...,. Rt pin t ol % na ecinen t page,, H epoilp I ic \\ndit i ononit tcc W p...,. Indep<ndeni \\ ndit oi s Rtpoil ~ page 20 ( onsohdalcd 5talcinc nl O o f lju u m c page 2, a i on.solida t ed st at e me n t 9 , of ( a sli l h m s 1 page $2 ( on solidaled I;alant c 5hect W p.. 2. (unsohdatid slatt mcnl of in ( ogn mo n sit.n c thano.s luilde t s l quit s 'page 25 g M \\otes to( on sohdated l'in a ni ial sl a t c on al s ,4 p...it s % naucme n t s l h st u s s o,n a nd \\nah us ul I inant tal ( ondit oin and Ursuit al(>prialnins N u m mai c l inant hal a s ( 5tafalical Rrcicu 19'l l '#.s. ' page.. In ve st oi i n toi m.fl u in o ..,,_,,,,i-..- M-P"'- T m

EPORT OF MANAGEMENT l The management of Atlantic Energy, Inc. and its subsid-as they relate to the fairness of the financial statements. iaries (the Company) is responsible for the preparation Their audits are based on procedures belived by them of the fmancial statements presented in this Annual to provide reasonable assurance that the financial state-Heport. The financial statements have been prepared in ments are free of material misstatement. conformity with generally accepted accounting princi-The Company's internal auditing function conducts ples. In preparing the financial statements, management audits and appraisals of the Company s operations. It made informed judgments and estimates, as necessary, ev luates the system of internal accounting, financial relating to events and transactions reported. Management and operational controls and compliance with estab-is also responcible for the preparation of other financial

E *C" "I**'

information included elsewhere in this Annual Report. mternal auditors periodically make recommendations Management has established a system of internal account-concerning the Company's internal control structure ing and financial controls and procedures designed to to management and the Audit Committee of the Board provide reasonable assurance as to the integrity and of Directors. Management responds to such recommen-reliability of financial reporting. In any system of finan-dations as appropriate in the circumstances. None of the cial reporting controls, there are inherent limitations. recommendations made for the year ended December Management continually examines the effectiveness 31,1993 represented significant deficiencies in the design and efficiency of this system, and actions are taken when or operation of the Company's internal control structure, j opportunities for improvement are identified. Manage-l ment believes that, as of December 31,1993, the system of internal accounting and financial controls over financial reporting is effective. Management also recog- [ nizes its responsibility for fostering a strong ethical J.L.Jacobs climate in which the Company's affairs are conducted President and Chief Executive Officer according to the highest standards of corporate conduct. l 71is responsibility is characterized and reflected in the Company's code of ethics and business conduct policy. l i The financial statements have been audited by Deloitte J G.Salomone & Touche, Certified Public Accountants. Deloitte & Vice President and Treasurer Touche provides an objective, independent audit as to management's discharge of its responsibilities insofar January 31,1994 i m

EPORT OF THE AUDIT COMMITTEE The Audit Committee of the Board of Directors is com-meets regularly with the internal auditors and Deloitte prised solely ofindependent directors. The members of & ouche, without management present, to discuss the the Committee are: Jos. Michael Galvin, Jr., Gerald A. results of their activities, the adequacy of the Company's Hale, Matthew Holden, Jr., Kathleen MacDonnell and system of accounting, financial and operational con-Harold J. Havechd. The Committee held three meetings trols and the overall quality of the Company's financial dWg 1993. reporting. The meetings are designed to facilitate any private communication with the Committee desired by The Committee oversees the Company's financ. l report-ia the internal auditors or Deloitte & Touche. No signifi-ing process on behalf of the Board of Directors. In ful-cant actions by the Committee were required during the filling its responsibility, the Committee recommended year ended December 31,1993 as a result of any private to the Board of Directors, subject to shareholder ratifica~ communications conducted. tion, the selection of the Company's independent audi-tors, Deloitte & Touche. The Committee discussed with the Company's internal auditors and Deloitte & Touche the overall scope of and specific plans for their respec- / r tive activities concerning the Company. The Committee also discussed the Company's consolidated financial Matthew Holden, Jr. statements with Deloitte & Touche. The Committee Chairman, Audit Committee January 31,1994 NDEPENDENT AUDITORS' REPORT Deloitte& ^"a sia"i'ic^"t estim tes =>de br =>">aeme"t as we" s duaung me meran handal catement mesenta-TantrihU Certified Public Accountants a muu tion. We believe that our audits provide a reasonable h ar i Jersey 0'7054 n n ,. +. In our opinion. such consolidated financial statements .he,,,, are, o,:u,ers anu...tne uoaru or uirectors so t present fairly, in all material respects, the financial of Atlantic Energy,Inc.: position of Atlantic Energy, Inc. and its subsidianes We have audited the accompanying consolidated balance at December 31,1993 and 1992 and the results of their .heets of Atlantic Energy,Inc. and subsidiaries as of operations and their cash flows for each of the three December 31,1993 and 1992 and the related consolidated years in the period ended December 31,1993 in con-statements of income, changes in common sharehold. formity with generally accepted accounting principles. ers' equity, and ca;h flows for each of the three years in As discussed in Note 2 to the consolidated financial the period ended December 31,1993. These financial statements, in 1993 the Company changed its method statements are the responsibility of the Company's of accounting for income taxes to conform with State-management. Our responsibility is to express an op.m-ment of Financial Accounting Standards No.109. As ion on these financial statements bascd on our audits. discussed in Note 4 to the consolidated financial state-We conducted our audits in accordance with generally ments, in 1993 the Company changed its method of accepted auditing standards. Those standards require accounting for the costs of postretirement benefits that we plan and perform the audit to obtain reasonable other than pensions to conform with Statement of assurance about whether the financial statements are Financial Accounting Standards No.106. free of material misstatement. An audit includes exam-ining, on a test basis, evidence supporting the amounts o d',d., [ %,<.e.d and disebsures in the financial statements. An audit also includes assessir'g the accounting principles used January 31,1994 AHanOc Enngy h

ONSOLIDATED STATEMENT OF INCOME .waminnergy. iz unssuosaarws iThousands ofikflars) For the Wars l'nded[Wember 31, ./.'~ >7 1;. 1993 1992-1991 Operating Revenues-Electric $865,675 $816,825 5808.374 Operating Expenses: Energy 159,438 161,134 182,972 Purchased Capacity 110,781 103,173 79,314 Operations 162,151 148,917 146,548 Maintenance 45,360 49,837 51,960 Depreciation and Amortization 67,950 69,371 66,023 State Excise Taxes 104,280 97,969 88,932 l Federal lncome Taxes 45,277 37,143 36,244 Other Taxes 10,854 12,113 11,525 Total Operating Expenses 706,091 679.657 663,518 Operating Income 159,584 137,16S 144,856 Other Income: Allowance for Equity Funds Used During Construction 2,368 2,212 1,814 Litigation Settiement, net of tax of: 1993-$(1,321); 1992-$4.982 (2,564) 9,671 Other-Net 12,884 9.519 7,043 Total Other income 12,688 21,402 8,857 Income Befor_e Interest Charges 172,272 158.570 153.713 Interest Charges: Interest on Long Term Debt 59,385 53,284 51,601 interest on Short Term Debt 1,421 = 1,579 1,946 Other interest Expense 212 1,099 1,179 Total Interest Charges 61,018 55,962 54,726 Allowance for Borrowed Funds Used During Construction (1,448) (1,414) (3,059) Net Interest Charges 59,570 54,548 51,667 j Less Preferred Stock Dividend Requirements of Subsidiary 17,405 17,812 16.411 Net income S 95,297 5 86,210 $ 85,635 Average Number of Shares of Common Stock Outstanding (in thousands) 52,888 51.592 49,008 Per Common Share: Earnings 1.80 1.67 5 1.C Dividends Declared _ S 1.535 $ 1.515 $ 1.495 Dividends Paid 1.53 1.51 1.49 nua,me.-g we, n, c,,nu,a.a,a rmana swmes.,,on,,a,au! ca,i er,n,m mi,mwi, I b Adance Energy J

G N dO LID AT E D STATEMENT O'F ' C A S H ' F L O W S : .titantic energy. inc. anaus<istorics (Thousands of Dollars) For the Years EnJedDecember 31, L ~ $ps;p '~ '.il992,. ~1991 '. Cash Flows Of Operating Activities: Net income - $ 95,297 $ 86,210 $ 85,635 Deferred Purchased Power Costs (6,050) 13,410 (12,938) Deferred Energy Costs (15,269) (6,143) 13,180 Preferred Stock Dividend Requirements of Subsidiary 17,405 17,812 16,411 Depreciation and Amortization 67,950 69,371 66,023 Allowance for Funds Used During Construction ' (3,816) (3,626) (4,873) Nuclear Decommissioning Reserve 6,424 6,424 3,010 Deferred Income Taxes-Net 20,901 23,386 13,413 i Prepaid State Excise Taxes (35,982) 540 (98) Net Decrease (increase) in Other Working Capital 32,364 7,685 (2,723) Other-Net (1,074) 2,852 7,498 Net Cash Provided by Operating Activities 178,150 217,921 184,538 Cash Flows OfInvesting Activities: - Utility Cash Construction Expenditures (138,111) (130,700) (172,425) Leased Property (9,946) (9,565) (8,793) Nuclear Decommissioning Trust Fund Deposits (6,424) (6,424) (13,777) Other-Net (9,832) (8,524) (8,557) Net Cash Used by Investing Activities - (164,313) (155.213) (203,552) Cash Flows Of Financing Activities: Proceeds from Long Term Debt 464,633 74,655 38,779 - Retirement and blaturity of Long Term Debt (370,541) (40,599) (50,170) Decrease in Short Term Debt - (14,600) (6,000) (23,350) Proceeds from Capital Lease Obligations 9,946 9,565 8.793 Proceeds from Common Stock Issued 16,208 16,110 72,698 . Proceeds from Preferred Stock Issued 69,720 Dividends Declared on Preferred Stock (17,405) (17,812) (16,411) Dividends Declared on Common Stock (67,259) (65,644) (62,769) Other Net (S,831) (5,403) (9,170) Net Cash Provided (Used) by Financing Activities 14,151 (35,128) 28,120 Net Increase in Cash and Temporary Investments 27,988 27,580 9,106 Cash and Temporary Investments, beginning of year 45,647 18,067 8,961 Cash and Temporary Investments, end of year S 73,635 $ 45,647 $ 18,067 Supplemental Schedule of Payments: Interest S 52,765 5 55,275 $ 57,221 Income taxes. $ 19,565 $ 24,312 $ 23,721 Noncash Financing Activities: Common Stack issued from dividends declared under dividend reinvestment plan $ 14,088 $ 12,692 $ 11,304 The accompanyisig Notes to coruolidated Mr.ancial Statements are ar integral part of these statements. Atkntic Energy -

ONSOLiDATED BALANCE SHEET a:iaraic tnern tw. ans sussuiaries (Thousands of fktlars) Iwember 31, I).,. {., I,. 1.

. $92.

Assets Electric Utility Plant: In Service: Production $1,054,217 $1,042,567 Transmission 338,584 312,374 Distribution 627,649 583,890 General 173,206 155,679 Total In Service 2,193,656 2,094,510 Less Accumulated Depreciation 668,832 607.198 Net 1,524,824 1,4S7,312 Construction Work in Progress 156,590 130,248 l Land lleid for Future Use 6,901 5,045 Leased Property-Net 45,268 49,304 Electric Utility Plant-Net 1,733,583 1,671,909 Nonutility Property and Investments: Investment in Leveraged Leases 77,268 76,465 Nuclear Decommissioning Trust Fund 43,163 34,617 Nonutility Property and Equipment-Nel 14,535 15,561 Other Investments and Funds 18,102 11.132 Total Nonutility Property and Investments 153,068 137,775 Current Assets: Cash and Temporary Investments 73,635 45,647 Accounts Receivable: Utility Service 51,502 47,928 Miscellaneous 11,420 12,533 Allowance for Doubtful Accounts (3,000) (3,000) Unbilled Revenues 39,309 39,281 Fuel (at average cost) 14,635 20,874 Materials and Supplies (at average cost) 28,230 25,763 Working Funds 14,315 15,433 Prepaid State Excise Taxes 8,386 6,110 Other Prepayments 7,410 4,137 Deferred Energy Costs 7,180 Deferred Income Taxes 3,283 6,218 Total Current Assets 256,305 220,924 Deferred Debits: Unrecovered Purchased Power Costs 130,458 124,408 Recoverable Future Federal income Taxes 85,855 Unrecovered State Excise Taxes 33,706 Unamortized Debt Costs 39,306 20,693 Property Abandonment Costs-Net 10,325 10,297 Other Regulatory Assets 31,380 23,655 Other 13,522 9,677 TINal fieferred Debits ~~ 344,552 188,730 Total Assets $ 2,487,508 $2.219,338 rs, m ominm, nom w cone,i,ua rin .a sw,nwo,un in,ma nn,,mm eso,ou AtlantK Erkrgy k.

f O N SO LID AT E D DALANCE SHEET mza.a,ar-rgv i. r a af s#um.o (Thousands ofDollars} December 31 (.h $lhh5fh[!?l,jk,Nhh$kbl$$$@th&5$Y&$$h&bb$$&$$$hifh$k Liabilitle: and Capitalization Capitalization: Common Shareholders' Equity: Common Stock, no par value; 75,000,000 shares authorized; issued and outstanding: 1993 - 53,506,786; 1992 - 52,198,624 S 579,443 $ 549,147 Retained Earnings 256,549 242,768 Total Common Shareholders' Equity 835,992 791,915 Preferred Stock of Atlantic City Electric Company; Not Subject to Mandatory Redemption 40,000 40,000 Subject to Mandatory Redemption 173,750 190,250 Long Term Debt 766,101 631,580 Total Capitalization (excluding current portion) 1,815,843 1,653,745 Current Liabilities: Preferred Stock Redemption Requirement 12,250 1,050 Long Term Debt due within one year 19,356 Capital Lease Obligations due within one year 861 79 Short Term Debt 14,600 Accounts Payable 63,847 52,028 Taxes Accrued 16,020 7,697 Interest Accrued 22,149 14,706 Dividends Declared 24,910 24,275 Customer Deposits 2,890 2,955 Deferred Energy Costs 8.089 Other Total Current Li,nilities 21,8 7_5___ 16,794 164,802 162,348 Deferred Credits and Other Liabilities: Deferred Income Taxes 383,347 276,492 Deferred Investment Tax Credits 54,180 56,715 Capital Lease Obligations 44,407 48,505 Other 24,929 21,533 Total Deferred Credits and Other Liabilities 506,863 403,245 Commitments and Contingencies (Note 10) Total Liabilities and Capitalization $2,487,508 $2.219,338 l l l Atimuc Erwrgy i

ONSOLIDATED STATEMENT OF CHANGES IN COMMON SHAREHOLDERS' EQUlTY .ws,aa ro,rar i,w. m a u,istanc< Commun Retained (Thousands otDollarst Sitares Stak Earnings Balance, December 31,1990 45,951,976 $ 436,343 $ 223,749 Common Stock issued: Public offering 4,000,000 66,970 Other 944,098 17,032 Net income 85,635 Capital stock expense of subsidiary (417) Common stock dividends (74,073) Balance, December 31,1991 50,896,074 520,345 234,894 Common Stock issued 1,302,550 28,802 Net income 86.210 Common stock dividends (78.336) Balance, December 31,1992 52,198,624 549,147 242,768 Common Stock issued 1,308,162 30,296 Net income 95,297 Capital stock expense of subsidiary (169) Common stock dividends (81,347) Balance, December 31,1993 53,506,786 $579,443 S256,549 The acamparirmd %tn to Otmunidated Fmancial Statements are ar, mt,<gt as part of these statettwrits Common Stock issued in 1993,1992 and 1991 was July 1993, an additional 2,000.000 shares of Common through the Dividend Reinvestment and Stock Pur-Stock were registered for issuance under the DRP. At chase Plan (DPP) and Atlantic City Electric Company December 31,1993,1,423,468 and 135,992 shares ( ACE) employee benent plans. In 1991, Common were reserved fu ssuance under the DRP and ACE Stock was also issued through a public offering. In employee benefit plans, respectively. 0l Athouc rnergy

OTES TO CONSOLIDATED l FINANCIAL STATEMENTS i s1 WinfMMHIH NLIND i Organization Regulation ' Atlantic Energy, Inc. (the Company or parent) is the The accounting policies and rates of ACE are subject - parent of a consolidated group consisting of the follow- - to the regulations of the BRC and in certain respects to ing wholly-owned subsidiaries: Atlantic City Electric the Federal Energy Regulatory Commission (FERC). All l Company (ACE), Atlantic Energy Technology, Inc. significant accounting policies and practices used in ] (AET), Atlantic Generation,Inc.(aGI), Atlantic the determination of rates are also used for financial Southern Properties, Inc. (ASP) and ATE Investment, reporting purposes. .l Inc. (ATE). ACE is a public utility primarily engaged in "*'**'"8""*""" the generation, transmission, distribution and sale of electric energy. Rates for :ervice are regulated by the Revenues are recognized when electric energy services are rendered, and include estimates for amounts l New Jersey Board of Regulatory Commissioners (BRC). ACE's service territory encompasses approximately unbilled at the end of the period for energy used subse-2,700 square miles within the southern one-third of quent to the la billing cycle. New Jersey. The majority of ACE's customers are resi-Nuclear Fuel ~ dential and commercial. ACE, with its wholly-owned Fuel costs associated with ACE's participation in subsidiary that operates certain generating facilities > jointly-o vned nuclear generating stations, including is the primary company within the consolidated group. spent nuclear fuel disposa! costs, are charged to Energy AET invests in companies with energy-related products expense based on the units of thermal energy produced. and technologies and has a wholly-owned subsidiary that owns patented technology for geothermal heating Electric Utility Plant and cooling systems. ACI and its wholly-owned subsid-Property is stated at original cost. Cencrally, the plant iaries are engaged in the development of cogeneration is subject to a first mortgage lien. The cost of property power projects which are located in New Jersey and additions, including replacement of units of property New York through several partnership arrangements. and betterments,is capitalized included in certain ASP owns, develops and manages a commercial office property additions is an Allowance for Funds Used and warehouse facility located in southern New Jersey. During Construction (AFDC), which is defined in the ATE provides fund management and financing to applicable regulatory system of accounts as the cost affiliates and manages its portfolio ofinvestments in during the period of construction of borrowed funds leveraged leases for equipment used in the airline and used for construction purposes and a reasonable rate. ) shipping industries. on other funds when so used. AFDC has been calculated using a semi-annually compounded rate of 8.95%, as 1 Principles of Consolidation ,g The consolidated fmancial statements include the July 31,1993. Cffective August 1,1993, ACE reduced accounts of the Company and its subsidiaries. All the AFDC rate to 8.25%, as approved by the BRC on an significant inter-company accounts and transactions interim basis. have been climinated in consolidation. ACE, AET and l AGI consolidate their respective subsidiaries. AGI Depreciation l accounts for another investment using the equity ACE provides for straight-line depreciation based on method by recognizing its proportionate share of the the estimated remaining life of transmission and distri-results of operations of that investment.The results bution property, remaining life of the related nuclear of operations of the nonutility companies are not plant operating license for nuclear property, and esti-significant and are classified under Other income in mated average service life for all other depreciable j the Consolidated Statement ofincome. property. The overall composite. e of depreciation was approximately 3.3% in 1993,3.5% in 1992 and 3.7% ~ in 1991. Accumulated depreciation is charged with the m anu a n. -E

OTES TO CONSOLIDATED FINANCIAL STATEMENTS cost of depreciable property retired together with representing energy costs incurred that are to be col-removal costs less salvage and other recoveries, lected from customers) or overrecovery (a liability Depreciable property of the nonutility companies representing previously collected energy costs to be is not significant. returned to customers) of costs is deferred on the Con-solidated Balance Sheet as Deferred Energy Costs. These Nuclear Decornmissioning Trust dhd m mognized in the Consolidated Statement ACE has a trust to fund the future costs of decommis-of income as Energy expense during the period in which sioning each of the five nuclear units in which it has thev are subsequently included in the LECs. an ownership interest. The current annual funding amount, as authorized by the BRC, totals $6.4 million income Taxes and is provided for in rates charged to customers. The Effective January 1.1993. deferred Federal and state funding amount is based on estiraates of the future cost income taxes are provided on all significant temporary of decommissioning each of the units, dates that decom-differences between book bases and tax bases of assets missioning activities are expected to occur and return and liabilities, transactions that enter taxable income to be earned by the assets of the fund. The BRC has in an earlier or later year than for book income and tax established that the total estimated cost to decommis-carryforwards. Prior to 1993, deferred Federal and state sion ACE's share in nuclear units is $65.5 million in income taxes were provided on all significant current 1987 dollars. The BRC has further established that transactions for which the timing of recognition differs decommissioning activities are expected to begin in for 'sook and tax purposes. Investment tax credits, which 2006 and continue through 2032. Actual costs and tim-at used to reduce current Federal income taxes. are de-ing of decommissioning activities may vary from the fe: red on the Consolidated Balance Sheet and recognized current estimates. ACE will seek to adjust these esti-in book income over the life of the related property The mates and the level of rates collected from customers Company and its subsidiaries file a consolidated Federal in future BRC proceedings to reflect changes in decom-income tax return. Income taxes are allocated to each of missioning cost estimates and the expected levels of the companies within the consolidated group based on inflation and interest to be earned by the assets in the the separate return method. trust. As of December 31,1993, the trust had a market unm ed purchased p w costs value of $16.4 million. Of the $43.2 million in the trust, $31.9 million has been qualified for Federal income tax ACE has an arrangement for 125 megawatts (NWs) of purposes. ACE had an associated accumulated habilitv capachy and related energy from Pennsylvania Power for decommissioning costs of $42.2 million at and Light Company (llP&L) which commenced in 1983 December 31.1993. and contmues through beptember 30,2000. Levehzed base rates were approved by the BRC to recover certain Deferred Energy Costs estimated costs to be incurred over the term of the As approved by the llRC, ACE has Levelized Energy arrangement. Through September 30,1991, estimated Clauses (LECs) through which energy and energy-costs exceeded levelized revenues and these excess costs related costs (energy) are charged to customers. LEC were deferred on the Consolidated Balance Sheet as ( rates are based on projected energy costs and prior l'nrecovered Purchased Power Costs. The BRC granted a l period underrecoveries or overrecoveries of energy return on these unrecovered amounts. Subsequent to costs. Energy costs are recovered through levelized September 30,1991, levelized revenues are greater than rates over the period of projection, which is generally the estimated costs, permitting the previously deferred a 12-month period. In any period, the actual amount of costs to be charged to Purchased Capacity expense on LEC revenues recovered from customers will be greater the Consolidated Statement of Income over the remain-l or less than the actual amount of energy costs incurred ing term of the arrangement. Differences between actual in that period. Energy expense is adjusted to match the costs incurred and the estimated costs being recovered associated LEC revenues. Any underrecovery tan asset are subject to the usual base rate consideration. Also included within linrecovered Purchased Power Costs are amounts paid by ACE associated with contract renego-tiations with independent power producers, for which ACE expects recovery through rates (see Notes 3 and 10). b hoc Fme

l 1

1 Property Abandonrnent Costs is 15 years) and asbestos removal of $9.9 million (re-Certain costs of property of ACE, for which the purpose of covery period is over the life of the related generating the property was subsequently terminated or cancelled, station), Recovery of regulatory assets for Unrecovered continue to be recorded as assets. This is because these Purchased Power Costs (Note 1), Recoverable Future costs have been permitted by the BRC to be recovered in Federal income Taxes (Note 2) and Postretirement rates over more than one year, or because future recov-Benents other than Pension's (Note 4) are sep'rately ery in rates is probable. At December 31,1993, costs discussed in the Notes to Consolidated Financial State-that are being recovered in rates with no return on the ments where indicated. Other regulatory assets for unamortized amount invested are as follows: which future recovery is probable amounted to $5.1 Net Remainine million at December 31,1993. Prewn! Dwmortized Recowry Financial Instrurnents Offshore Nuclear A number ofitems w.thm. Current Assets and Current - i Generating Units $ 774 $1,119 6 Nuclear Generating Liabilities on the Consolidated Balance Sheet are con-Unit 2.745 3.578 4 sidered to be 6nancialinstruments because they are Unrecovered Nuclear cash or are to be settled in cash. Due to their short term Fuel Advances 1,646 2,518 8 nature, the carrying values of these items approximate Proposed plant Site 1,114 1.333 3 M W Md s'h he MhUm' The excess of the costs of the assets listed in the above Service and Unbilled Revenues are subject to concentra-table over their discounted present values was recognized tion of credit risk because they pertain to utility service as a loss at the date of abandonment. The discount, which conducted within a con 6ned geographic region. Invest-is not significant,is being restored to income by accre-ments in leveraged leases are subject to concentration tion over the amortization period of the abandoned costs of credit risk because they are exclusive to a small num-allowed for ratemaking. Costs being recovered are amor. ber of parties within two industries. The Company has. tized to expense over the recovery period. Other aban-recourse to the affected assets under lease. These leased doned property for which future recovery is probable assets are of general use within the respective industries. amounted to $4.0 million at December 31,1993. j Regulatory Assets Debt premium, discount and expenses of ACE are amor-l Costs incurred by ACE that have been permitted by the tized over the life of the related debt. Costs associated l HRC to be deferred for recovery in rates in more than with debt reacquired by refundings are amortized over one year, or for which future recovery is probable, have the life of the newly issued debt as permitted by the BilC been recorded as regulatory assets. Regulatory assets in accordance with FERC guidelines. Temporary invest-are amortized to expense over the period of recovery.Un. ments considered as cash equivalents for Consolidated j amortized costs currently being recovered in rates at Statement of Cash Flows purposes represent purchases December 31,1993 are: Unrecovered State Excise Taxes of of highly liquid debt instruments maturing in three $33.7 million tremaining recovery period is nine years): months or less. decommissioning and decontaminating Federally-owned Certain prior year amounts have been reclassi6ed to nuclear units of $8.4 million (remaining recovery period conform to the current year reporting of these items. ' Adanuc Energy b J

OTES TO CONSOLIDATED FINANCIAL STATEMENTS !E2 IH M m u Fur the Wars EndedDecember3L (000) 1993 1992 1991 The components of Federal income tax expease are as follows: Current $25,349 $22,441 $24,202 Deferred 20,247 23,154 13,043 Investment Tax Credits Recognized on Leveraged Leases (12) i233) (500) Total Federal Income Tax Expense 45,584 45,362 36,745 Lass Amounts Included in Other income 307 8.219 501 Federal Income Taxes included in Operating Expenses $45,277 $37,143 $36.244 A reconciliation of the expected Federalincome taxes compared to the reported Federal income tax expense computed by applying the statutory rate follows: Statutory FederalIncome Tax Rate 35% 34 % 34 % Income Tax Computed at the Statutory Rate $55,400 $50,791 $47,189 Plant Basis Differences (5,171) 2,022 (4,477) Amortization of Investment Tax Credits (2,546) (2,767) (3,038) Deferred Tax Adjustments (2,071) - -(3,757) (2,641) Other-Nct (28) (927) (288) Total Federal Income Tax Expense $45,584 $45.362 $36.745 Effective Federal Income Tax Rate 29% 30% 26% State income tax expense is not significant. Items comprising deferred tax amounts are as follows at December 31,1993 and 1992: 1993 1992 Deferred Tax Liabilities: Plant Basis Differences $295,445 $177,124 Leveraged Leases 53,461 47,722 Unrecovered Purchased Power Costs 38,792 42,694 Staic Excise Taxes 11,797 (813) Other 21,057 12.290 Total Deferred Tax Liabilities 420,552 279,017 Deferred Tax Assets: Deferred investment Tax Credits 29,247 Other 11,741 8,743 Total Deferred Tax Assets 40,988 8,743 Total Deferred Taxes-Net $379,564 $270.274 Effective January 1,1993, the Company adopted State-effect for revenue requirements. Due to the tax rate in-ment of Financial Accounting Standards No.109 enti-crease discussed below, net deferred Federal income tax tied " Accounting for Income Taxes." Statement No.109 liabilities of ACE increased by $13.8 million in 1993. The changes the recording methodology relating to deferred deferred tax costs associated with these additional liabili-income taxes to an asset and liability approach. The prin-ties are recorded on the Consolidated Balance Sheet as cipalimpacts to the Company relate to recording.on a Recoverable Future Federal Income Taxes in recognition current basis, the effect of changes in enacted income of the probable amount of revenue to be collected from tax rates on the amount of income taxes recorded and ratepayers for these additional taxes to be paid in later the recording of deferred tax liabilities not previously years. The adoption of Statement No.109 by the nonutil-iecorded by ACE. Upon adoption of Statement No.109, ity subsidiaries of the Company did r.ot have a material ACE recorded an increase in deferred Federal income effect on the consolidated financial statements. tax liabilities of approximately $85 million after giving b m ec Energy

I l On August 10,1993, the Omnibus Budget Reconcil-The effects of the valuation allowances and state NOLs iation Act of 1993 was signed into law. The most signifi-are not material to consolidated results of operation and j c mt aspect of this law affecting the Company was an financial position. is crease in the corporate Federal income tax rate to 35% The Company is subject to Federal Alternative Mini-fri m 34%, effective retroactively to January 1,1993. The mum Tax ( AMT), which is attributable to nonutility effect of this tax rate increase on the 1993 consolidated onorations. At December 31,1993, there is an estimated Federal income tax expense was not material . cumula3ve AMT credit of $18 million.The AMT credit At December 31,1993, valuation allowances exist is availabit for an indefinite carryforward period against i against deferred tax assets primarily for cumulative net future Feder. l income tax payable, to the extent that j operating losses (NOLs) for state income tax purposes. the regular I ederal income tax payable exceeds future AMT payab.e. s3 UTE UTTED H ME Energy Clause Proceedings between ACE and Staff and authorized ACE to begin recovery of the Salem deferred costs concurrent with Changes in Levelized Energy Clause Rates 1991-1993 the BRC's approval and implementation of ACE's then IIh pen 6g Mruay M, M M peon. d oate pare raed (milliomi (mit/iomi orective On February 28,1992, ACE filed with the BRC a peli-3/91 $30.6 $31.3 6/91 tion relating to its LEC rates for the period June 1,1992 through May 31,1993. requesting no change in its cur-1~ j ' 3 rent rates. On April 30,1992, ACE filed revisions to its ACE's Levelized Energy Clauses (LECs) are subject to petition that would result in a decrease of $6.6 million, annual review by the BRC. reflecting an allocation to customers of 25% of the net In March 1991 ACE tiled a petition requesting LEC settlement reached in March 1992 in the lawsuit against revisions to reflect an increase of $30.6 million for the PECO (See Note 10), and an update for the projected period June 1,1991 through May 31,1992. On June 11, overrecovery of prior LEC costs and associated interest. 1991, the BRC ordered a net increase in annual LEC The parties entered into a stipulation dated August 14,- revenues of $21.3 million. effective on that date. In its 1992 regarding the February 28,1992 petition and April order, the HNC denied ACE's request for retention of 30,1992 revisions thereto. In October 1992, the BRC a portion of fuel and energy savings associated with a issued its written order adopting the stipulation which power purchase arrangement with PECO Energy Com-resulted in a reduction in annual LE' revenues of $8.5 pany (formerly Philadelphia Electric Company-PECO). milhon that was implemented Oc%ber 20,1992, includ-The BRC also continued to defer consideration of previ-ing the recovery over a three-year period of the $10.4 ously deferred costs associated with outages at the million Salem deferred costs. The amount allocated to Salem Nuclear Generating Station in 1983. customers from the PECO settlement was subject to in January 1992, ACE filed a request with the BRC for later review by the BRC in ACE's 1993 LEC proceeding. rehearing and reconsideration of the issues above. On On March 31,1993, ACE filed a petition with the BRC February 10,1992. ACE withdrew its request for rehear-requesting a $14.2 million increase in LEC revenues for ing with respect to recovery of interest payments and the period June 1,1993 through May 31,1994. Included retention of fuel and energy savings. In late May 1992, in the request were (1) an estimated payment of $569 ACE and the Staff of the BRC (Staff) entered into a stipu-thousand expected to be made in October 1993 for ACE's lation to settle the Salem deferred costs. By the terms of assessment of the Department of Energy (DOE) decom-the stipulation, ACE would begin recovery, mer a three-missioning and decontamination fund as required by year period, of $10.4 million of Salem deferred costs. the Energy Policy Act of 1992 and (2) a $48 thousand On September 2,1992, the BRC adopted the stipulation penalty for 1992 nuclear operations as required by the @) wnnanmy j

OTES TO CONSOLIDATED FINANCIAL STATEMENTS Nuclear Performance Standard (NPS). The filing also expire in May 1994 and an initiative by ACE of $28 mil-reflected the 25% ($3.8 million) allocation to ratepayers lion to keep its rates competitive. Included in ACE's i in 1992 of the settlement with PECO. request is the recovery over five years of $20 million I On August 27,1993, the parties to ACE's 1993 LEC paid by ACE in December 1993 in connection with con-petition entered into a stipulation of settlement which tract renegotiations with an IPP. ACE has requested that resulted in a $10.9.million increase in annual LEC rev. the BRC approve the proposed LEC rates to be effective enues. Provisions of the stipulation included (1) an for service rendered on or after June 1.1994. additional 25% ($3.8 million) of the Peach Bottom set-Base Rate Case Proceedings tiement together with accrued interest at a rate of 6.5% Changes in Base Rates 1991-1993 to be returned to customers during the 1994-1995 LEC IcNN rest period;(2) recovery of $400 thousand for the assessment amount ammmt overannut< N' "W"#*d Gra"'#d I'd Gm'*"' Fear for the DOE decommissioning and decontamination nled imillimu) (millions t Effective Granted % Equity % Endina fund. with any difference between the recovered amount 9/90 $113.0 $50.0 7/91 10,52 12.50 5/91 and the actual assessment being included in the deferred 8/91 25.8 12.9 10/92 fuel balance and recovered during the next LEC period; j (3) full LEC recovery of all future assessments for the in September 1990 ACE nled a petition with the BRC i DOE decommissioning and decontamination fund and requesting an increase in annual base rate revenues of } (4) recognition of the $48 thousand penalty for 1992 $113 million. ACE also requested that a $41.6 million j nuclear operations as required by the NPS. The stipula-provisional base rate increase, granted by the BRC effec-j tion was approved by the BRC on September 29,1993. tive June 1990, be confirmed and placed permanently in The LEC tariffs resulting from this stipulation of settle. base rates. ACE also requested recovery of the first year ment were ordered effective for service rendered on and costs of the PECO power purchase agreement not cov-after October 1,1993. The additional 25% allocation of ered by the provisional increuse, plus full recovery of the i the Peach Bottom settlement has been provided for in costs for the remaining three years of the agreement. I the 1993 financial statements. In its 61ing, ACE requested an allowed overall rate of return of 11,13% and an authorized return on common At the BRC's open public meeting on July 7,1993, the BRC initiated a generic proceeding to address the recov-equity of 13.7%. At that time, ACE had an allowed over-all return of 11.42% and an authorized return on com-l ery of the capacity costs associated with purchases of f power from nonutility generation projects. This issue mon equity of 14.1%. I relates to Rate Counsers contention that present BRC On June 24,1991, the Administrative LawMge policy provides for a -double recovery" of cogeneration (ALD issued ao initial decisioni attepiing < 3tipulation capacity costs. On August 17,1993, Rate Counseliden. between ACE and the parties in the base rate proceed-ti6ed ACE as one of the electric utilities for which they ing. The stipulation provided, among other things, for considered the double recovery of capacity costs to be at an increase in annual base rate revenues of $50 million issue. Various motions by both parties have been filed based upon a test year ending May 31,1991, an allowed and are awaiting BRC decision. ACE cannot predict the overall rate of return of 10.52% and an authorized re-outcome of this matter at this time. turn on common equity of 12.5%. In addition, the par-On February 8,1994, ACE filed a petition with the ties agreed to confirm and make permanent in base BRC requesting an increase in LEC revenues of $63 mil-r tes the $41.6 million provisionalincrease. lion for the period June 1,1994 through May 31,1995. On July 3,1991, the BRC adopted the initial decision The increase is primarily due to the added costs to be of the ALJ and the stipulation of the parties and author-incurred from two additional independent power pro. ized an increase in annual base rate revenues of $50 mil-ducers (IPPs) scheduled to begin commercial operation lion. During the course of the proceeding. the ALJ ruled in February 1994 and January 1995 from which ACE has that a Phase 11 proceeding was appropriate for the deter-contracted to purchase capacity and energy. The total mination of the regulatory treatment of consolidated projected costs for fuel and capacity for the LEC period Federal income tax benefits derived from af61iated non-are $147 million. ACE has reduced the requested utility entities. The stipulation also provided that ACE amount by $84 million as a result of the following: the would not be prevented from requesting regulatory utilization of $56 million of current base rate revenue treatment in a Phase 11 proceeding of any obligations associated with a utility power purchase contract due to arising from changes in state law with respect to gross @l) 3g,ngc gnmy

receipts and franchise taxes (state excise taxes) that state excise tax payments to the state. With respect to l were enacted on June 30,1991, consolidated Federal income tax benefits, the BRC On August 30,1991, ACE filed its Phase Il request ordered that a rate base adjustment be made in the i with the BRC for an increase in annual base rate rev. amount of $15.4 million. This represents one-half of the l enues of $25.8 million to recover the increased costs total tax benefits for 1990 and the total tax benefits for relating to the changes in the state excise tax law. The 1991 realized by affiliated nonutility entities in filing petition also addressed the regulatory treatment of con _ consolidated Federal income tax returns. This rate base solidated Federal income tax benefits derived from affil. adjustrnent resulted in a reduction in annual base rate lated nonutility entities. In May 1992, the AU issued an revenues of $2.2 million. On December 23.1992, Rate initial decision in the proceeding. The ALJ recommended. Counsel filed a Notice of Appeal with the Superior Court among other things, that a consolidated Federal income of New Jersey, Appellate Division relating to the BRC's tax benefit adjustment be made to reduce ACE's rate base, order allowing ACE to increase its base rates with I that Rate Counsel's calcuibn of cash working capital respect to changes in state excise tax. In its filing Rate l' be adopted and that ACE be provided a ten-year recovery Counsel asserted that the BRC's order was unreasonable, of the additional state excise tax payments with interest not supported by evidence and results in unjust rates. on the unamortized balance calculated using the aver. Briefs have bee:. filed by ACE and Rate Counsel, and a age prime rate, decision is anticipated by the end of the second quarter in October 1992, the BRC issued its written order in f1994. ACE cannot predict the outcome of this matter ACE's Phase 11 base rate proceeding, accepting the rec-at this time. ommendations of the AU with certain modifications. BY other Rate Proceedings its order, the BRC authorized a net increase in annual On November 30,1993. ACE filed a petition requesting base rate revenues of $12.9 million effective October 20, modifications to the llotd Casino Tariff, which would l 1992. The change in base rates included the recovery allow those customers to be served by existing commer-of $95.6 million in additional state excise tax payments cial rate schedules. The schedules provide lower rates over a ten-year period with interest imputed on the un-i than the specific rates currently charged to hotel / casino amortized balance at the rate of 7.5E This amounted customers. lf all hotel / casino customers elect this to an increase in annual base rate revenues of approxi-option,it will result in a revenue reduction to ACE of up mately $13.5 million. The BRC also granted an increase to $5 million a year. The BRC is expected to act on this m annual base rate revenges of $1.6 million to reflect matter during the first quarter ofl994. ACE cannot pre-the cash working capitalimpacts of the acceleration of dict the outcome of this matter. E4 REHREHH HHW Pension Net periodic pension costs for 1993,1992 and 1991 ACE has a noncontributory defined benefit pension plan included the following components: l covering substantially all of its employees and those of mm 1993 i9e irai its wholly-owned subsidiary. Benefits are based on an service cost-employee's years of service and average fmal pay. The benetits earned plan's policy is to fund pension costs within the guide _ during the period 7,196 $ 7,310 $ 6.662 S I" *' lines of the minimum required by the Employee Retire- ,n 18,oi s 17.301 16,517 ment income Security Act and the maximum allowable Actual return on as a tax deduction. Each company is allocated its partici-plan assets (23,2003 (13,283) (22.188) pative share of plan costs and contributions. Amortizatian of deferred gain (loss) 5,637 (3.623) 7.211 Other-net (141) (172) (172) Net periodic pension costs $ 5,508 $ 7.533 $ 8.030 Atlanac Enugy h

1 TO CONSOLIDATED [ OTES FINANCIAL STATEMENTS l Approximately $5.2 million, $4.8 million and $5.1 million Effective January 1,1993, ACE adopted Statement of these costs were charged to operating expense in of Financial Accounting Standards No.106 entitled 1993,1992 and 1991, respectively, and the remaining " Employers' Accounting for Postretirement Benefits costs, which are associated with construction labor. Other Than Pensions." This statement requires employ-were charged to the cost of new utility plant. ers to record an obligation for unfunded accumulated A reconciliat;on of the funded status of the plan a3 other postretirement benefits earned to date and to re-l of December 31.1993 and 1992 is as follows: cord on the accrual basis the net periodic benents cost earned each year. Prior to 1993. the companies recorded l wn 1993 Iw2 only the annual cost of benefits, based on the amount of. Fair value of plan assets $213,600 $218.800 projected benefit obligation 207,246 213.459 funding provided. As permitted by the Statement, the Plan assets in excess of companies elected to recognize the unfunded accumu-l projected benefit obhgation 6,354 5.341 lated obligation existing at January 1,1993 (transition tinrecognized net transition asset (1,894) (2.066) obligation) of $77.9 million as a component of nel peri-l:nrecogmzed prior service cost 329 ~ od c benefits cost on a straight-line basis over 20 years. Unrecognized net gain (638) (2.784) prepad penston cost S 4,151 491 The cost of other postretirement benents was $13.1 Accumulated Lenefit obligation: million, $6.0 million and $4.9 million in 1993,1992 and Vested benefits $165,872 $160.507 1991, respectively. These costs were allocated as follows: Nonvested benetits 1,216 646 ,,yjffj,yg g,93 fyyy j3gf Total $167,088 $161.153 Operating expense $3.3 $3.8 $3.0 At December 31,1993, approximately 62% of plan assets New utility plant-associated with construction labor 1.7 2.2 1.9 were invested in equity securities,21% in 6xed income Regulatory asset 8.1 securit.ws and 17% m. other investments. The assumed rates used in determining the actuarial The regulatory asset in 1993 represents the effects of the l present value of the projected benefit ohiigation at year. new accounting standara in excess of the amount of cost l end were as follows: recognized under the previous method and currently 1993 fra allowable in rates. This excess cost is deferred as author-l Weighted average discount 7.5% 8.00 % ized by an accounting order of the BRC. l Anticipated increase in compensation 3.5% 4.50"" The net periodic other postretirement benents cost The assumeu long term rate of return on plan assets was for 1993 calculated under the new accounting stanJard 8.5% for 1993 and 8.00% for 1992 and 1991. comprises the following components: f!HHI) l Other Postretirement Benefits Service cost-benefits attributed ACE and its subsidiary provide certain health care and to service during the period 5 3.045 life insurance benefits for retired employees and their Interest cost on accumulated ehgible dependents. Substantially all employees may be_ postretirement benefits obligation 7.133 Actual retum on plan ans s come eligible for these benefits if they reach retirement Amortization of unrecognized age while working for the companies. Benefits are pr - t ransition obligation 3,893 vided through insurance companies and other plan pro-Other-net (711) viders whose premiums and related plan costs are based Net periodic other on the benefits paid during the year. ACE has a tax.quali. postretirement benefits cost $13.103 fied trust to fund these benents. Each company is allocat-A reconciliation of the funded status of the plan and the ed its participative share of plan costs and contributions. obligation for other postretirement benents recognized 1 Adanue Enugy

in the Consolidated Balance Sheet as of December 31, At December 31,1993, approximately 82% of plan assets 1993 is as follows: were invested in fixed income securities and 18% in roov; other investments. Accumulated benefits obligation: The assumed health care costs trend rate for 1993 is Retirees $ 32,720 11%, and is assumed to evenly declint to an ultimate constant rate G in h yeaN ad GereaRer. U r icip nts 21,267 Other active plan participants 49.125 the assumed health care costs trend rate was increased Total accumulated bene 6ts by 1% in each future year, the aggregate service and obligation 103.112 interest costs of the 1993 net periodic benefits cost Less fairvalue of plan assets 14,400 would increase by $1.6 million, and the accumulated Accumulated benefits obligation in postretirement benefits obligation at December 31,1993 would increase by $14.5 million. The weighted average Unr c gr z nct loss f 9) Unamortized unrecognized discount rate assumed in determining the accumulated transition obligation (73.968) benefits obligation was 7.5%. The assumed long term Accrued other postretirement return rate on plan assets was 7%. benefits cost obligation 5 8.105 M J01.5T101.\\ED GUEkATlH STATMH ACE owns jointly with other utilities several electric The amounts r,hown represent ACE's share of each production facilities. ACE is responsible for its pro-rata plant at, or for the year ending, December 31, including share of the costs of construction, operation and main-AFDC as appropriate. tenance of each facility. h ach Ilope Keystone Conemaugh Hottom Salem Creek Energy Source Coal Coal Nuclear Nuclear Nuclear Company's Share (%/BlWs) 2.47/42.3 3.83/65.4 7,51/157.0 7.41/164.0 5.00/52.0 Electric Plant in Service (000h i 1C93 $ 10,746 $ 18,055 $ 123,428 $ 203,858. $237,496 1992 10,422 16.718 121.494 195.201 _ 235,738 Accumulated 1)epreciation (000): I 1993 $ 3,231 $ 5,971 $ 51,871 78,383 $ 46,933 1992 3,068 5.861 48,958 71,511 40,492 Construction Work in Progress (000): 1993 758 $ 9,956 7,983 10,799 $ 1,022 1992 249 4.718 5.283 7.213 2.268 Operation and Blaintenance Expenses (including fuel) (000): 1993 $ 5,323 $ G,855 $ 31,479 27,021 $ 9,764 1992 4,976 7,194 29,618 25,461 9,541 1991 5.398 10,061 28,651 23.720 9,640 Working Funds (000): 1993 44 69 S 4,772 5,249 $ 2,061 1992 44 69 5.148 5.780 2,506 Generation 01Wil): 1993 293,876 416,263 1,043,485 840,043 440,118 1992 294,222 457,771 958,740 737,356 351,672 1991 235.506 463,113 758,637 1.068.307 368,900 ACE provides financing during the construction period the Consolidated Statement ofincome. Additionally, for its share of the jointly-owned plants and includes its ACE prcvides an amount of working funds to the opera-share of direct operations and maintenance expenses in tors of the stations to fund operational needs. Atlantic Enugy m__a.7...p -9 ,--4-~m, e y eie e p..--re--ef r r-t-- -, + - - 1- * - 9r ^

AL STATEMENTS !!6.\\0HTIUIT [0MHIES ~ The Company (AEI)is the parent holding company of AET's 1993 results are due to the receipt ofinsurance the consolidated group. Its primary activities are the proceeds by its subsidiary company. In 1993 this sub-management of investments in the subsidiary compa-sidiary discontinued its operating activities and now nies, issuance of common equity and performance of concentrates on licensing its patented proprietary. administrative functions on behalf of the consolidated knowledge. AET's 1992 results reflect the provision for group. Principal assets of each of the subsidiary compa-the restructuring of its subsidiary's activities. nies are: AET-capitalinvestment of approximately $3.0 AGl's 1993 and 1992 results reflect the operation of million in a geothermal heating and cooling technology two cogeneration facilities that became operational dur-subsidiary; AGI-capitalinvestments of approximately ing 1992. ACI's results for 1991 primarily reflect its. $24.5 million in cogeneration development projects and equity share oflosses attributable to the reduction of partnerships: ASP-commercial real estate site with a carrying values of certain cogeneration projects that net book value of $13.2 million and ATE-leveraged were subsequently sold at a loss by one ofits peuhips. lease investments of approximately $77.3 mil' ion. ASP's results in each year reflect tt inability to rent Other financial information regarding the subsidiary vacant space in its commercial site due to generally poor companies and parent-only operations of the Cornpany market conditions in commercial real estate. is as follows: ATE's 1993 result's were reduced by increased deferred company vet Amt Results o/o erati""' state income taxes. ATE's 1992 results benefitted from r M001 1993 1M2 1993 152 191 lower interest rates on amounts outstanding under its AET $ 2,069 $(5,763) $ 524 $(4.793) $ (970) 'olving credit agreement. AGI 18,746 2,122 4,459 1,366 ,1,015) l Asp 5,131 5,478 (347) (263) (415) Results of operations of AEI above exclude its equity ATE 9,182 9,959 (777) 667 511 in the results of subsidiary companies and generally AEI reflect administrative expenses. Net assets of AEI (parent (parent only) - (183) (401) (493) only) shown on the Consolidated Balance Sheet repre-l sent investments in and intercompany balances with the l subsidiary companies and common stock issued on behalf of the consolidated group. b Atlantic Energy

=- E71l3111\\IlVE filEFEllllED STOCE 0f.i(E ACE has authorized 799,979 shares of Cumulative Pre-Stock, No Par Value. Information relating to outstanding ferred Stock, $100 Par Value, two million shares of No Par shares at December 31 is shown in the table below. i Preferred Stock and three million shares of Preference 1993 1992 Current Optional Series Par Value Shares ^ Amount (000) Shares. Amount (000) ' RedemptionPrice Not Subject to Mandatory Redemption: L _4% $100 77,000 7,700, 77,000 $ 7,700 ' $105.50 4.10% 100 72,000 7,200 72,000 7,200 101.00 4.35% 100 15,000 1,500 15.000 1,500 101.00 4.35% 100 36,000 3,600 36,000 .3,600 101.00 4.75 % 100. 50,000 5,000 50,000 5,000 101.00 - 1 5% 100 50,000 5,000 50,000 5,000 100.00 7.52 % 100 100,000 10,000 100,000 -10,000 101.88-Total $ 40,000 $ 40.000 Subject to Mandatory Redemption: 48,000 $ 4,800 . 9.96% $100 S $8.25 None 60,000 6,000 65,000-6,500 104.87 ' $8.53 None 600,000 60,000 600,000 60,000- -103.00 l $8.20 None 500,000 50,000 500,000 50,000 l $7.80 None 700,000 70,000 700,000 - 70,000 Total 186,000 191,300 Less portion due within one year 12,250 1,050 Total $173,750 $190,250 l i Cumulative Preferred Stock Not Subject to Mandatory Beginning May 1,2001 and annually through 2005, l Redemption is redeemable solely at the option of ACE. 115,000 shares of $7.80 No Par Preferred Stock must be in May 1993, ACE redeemed all of the outstanding redeemed through the operation of a sinking fund at a shares of the Cumulative Preferred Stock,9.96% Series redemption price of $100 per share. On May 1,2006, the. at a price of $103.54 per share.On. November I of each remaining shares outstanding must be redeemed at $100 year,2,500 shares of the $8.25 No Par Preferred Stock per share. ACE has the option to redeem up to an addi-must be redeemed through the operation of a sinking lional 115,000 siwres without premium on each hiay i fund at a redemption price of $100 per share. ACE may through 2005. This series is not refundable prior to redeem not more than an additional 2,500 shares on any May 1,2006. sinking fund date without premium. ACE redeemed For the next five years, the annual minimum sinking 5.000 shares in 1993 and 2,500 shares in each of the fund requirements of the Cum.ulative Preferred Stock years 1992 and 1991. Subject to Mandatory Redemption are $12.25 million in i Beginning November 1,1994 and until fully redeemed, each of the years 1994 and 1995, and $22.25 million in 120,000 shares of the $8.53 No Par Preferred Stock must each of the years 1996,1997 and 1998. be redeemed through the operation of a sinking fund at Cumulative Preferred Stock of ACE is not widely 1 id a redemption price of $100 per share. At the option of and generally trades infrequently. The estimated aggre-ACE, not more than an additional 120,000 shares may be gate fair market value at December 31,1993 of ACE's redeemed on any sinking fund date without premium. Cumulative Preferred Stock was approximately $231 Beginning August 1,1996 and annually thereafter, milliou. This fair market value determination is based 100,000 shares of the $8.20 No Par Preferred Stock must on actual trades of certain series of ACE's Preferred be redeemed through the operation of a sinking fund at Stock on or nearest to December 31,1993 and on actual a redemption price of $100 per share. At the option of trades of preferred stock of other companies with simi. ACE, not more than an additional 100,000 shares may he f ar credit quality, coupon rates and maturities. redeemed on any sinking fund date without premium. This series is not refundable prior to August 1,2000. Atlantic Energy

@TES T O - C.O N S O L I D A T E D FI N A N C I A L. S T AT E M E N T S s8 LOH TEM DEBT Decernher 31 Series 4faturily Date 1993 1992 Medmm Term NotebMTNs' have varymg maturdy dates and are shown with the weighred average interent rat 6 of all the related issues withm the year of maturity 4%% First Mortgage Bonds 3/1/1993 S $ 9,540 5%% First Mortgage Bonds 2/1/1996 9,980 9,980 95,000 8% First Mortgage Bonds 11/1/1996 Medium Term Notes Series B-(6.28%) 1998 56,000 Medium Term Notes Series A-(7,52%) 1999 30,000 30,000 19,000 8%% First Mortgage Bonds 9/1/2000 Medium Term Notes Series B-(6.83%) 2000 46,000 27,000 8% First Mortgage Bonds 5/1/2001 7%% First Mortgage Bonds 4/1/2002 20,000 20,000 Medium Term Notes Series B47.18%) 2003 20,000 7%% First Mortgage Bonds 5/1/2003 29,976 29,976 Medium Term Notes Series A-(7.98%) 2004 30,000 30,000 Medium Term Notes Series B-(7.125%) 2004 28,000 7%% Pollution Control 1/1/2005 6,500 6,500 Medium Term Notes Series B-(6.45%) 2005 40,000 6%% Pollution Control 12/1/2006 2,500 2,500 Medium Term Notes Series ING.76%) 2008 50,000 10M% Pollution Control Series B 7/15/2012 850 850 6%% First Mortgage Bonds 8/1/2013 75,000 7%% Pollution Control Series A 4/15/2014 18,200-18.200 10M% Pollution Control Series C 7/15/2014 23,150-23.150 8%% First Mortgage Bonds 5/1/2016 125,000 8%% Pollution Control Series A 7/15/2017 4,400 4,400 9%% First Mortgage Bonds 10/1/2019 65,767 135,000 6.80% Pollution Control Series A 3/1/2021 38,865-38.865 7% First Mortgage Bonds 9/1/2023 75,000-5.60% Pollution Control Series A 11/1/2025 4,000. 7% First Mortgage Bonds 8/1/2028 75,000 Total 749,188 624,961 Debentures: 5%% 2/1/1996 2,267 2,267 7%% 5/1/1998 2,6 i 9 2.619 Total 4[886 4,886 Unamortized Premium and Discount-Net (2,973) (4,039) Total Long Term Debt of ACE 751,101 625.808 Long Term Debt of ATE 15,000 23,900 Long Term Debt of 0ther Subsidiaries 1,228 19.356 Less portion due within one year Total Long Term Debt $766,101 $631,580 in 1993, ACE redeemed principal amounts of the follow-principal amount of First Mortgage Bonds,9%% Series ing series of First Mortgage Bonds: $95 million,8% due due October 2019.The aggregate cost of these redemp-November 1996; $19 million,8%% due September 2000; tions and acquisitions was $13.1 million, net of related $27 million,8% duc May 2001 and $125 million,8%% Federal income taxes. due May 2016. ACE acquired and retired $69.233 million ) Atlantic Energy

Sinking fund deposits are required for retirement of ACE's long term debt s'ecurities are not widely held the 5%% Debentures annually on February 1 through and generally trade infrequently. The estimated aggre-1995 and for the 7%% Debentures annually on blay I gate fair market value at December 31,1993 of ACE's through 1997 in amounts in each case sufficient to long term debt was approximately $768 million, based redeem $100,000 principal amount. ACE may, at its on actual trades of ACE's long term debt that occurred option, redeem an additional $100,000 annually in each on or nearest to December 31,1993. case. Through December 31,1933, ACE acquired and Long term debt of ATE consists of $15 million of cancelled $433,000 and $281,000 principal amount of 7.44% Senior Notes due 1999. ATE has a revolving credit the 5%% and 7%% Debentures, respectively, which and term loan agreement which provides for borrowings amounts are sufficient to satisfy its requirements for of up to $35 million during successive revolving credit 1994 and subsequent years. Certain series of First blort-and tum loan periods. There were no borrowings out-gage Honds contain provisions for deposits of cash or standing under this agreement at December 31,1993, certification of bondable property currently amounting and commitment fees on the unused credit line were not to $250,000, which ACE may elect to satisfy through significant. In accordance with provisions of the agree-property additions. Additional sinking fund requirements ment, the expiration of the revolving credit period was - are as follows: exter ; ad from June 1,1993 to June 1,1994. Interest sinNms "W #""##W" N series mvinnma nae 6%% Pollution Centrol by reference to periodic pricing options available under Series Due 2006 December 1,1997 $ 75,000 the facility The estimated aggregate fair market value at 7%% Pollution Control December 31,1993 of ATE's senior notes was approxi-Series Due 2005 January 1. 2000 500,000 mately $15.8 million, based on the present value of the For the next five years, the annual amount of sched-future cash flows to the date of maturity. uled debt maturities and sinking fund requirements of ACE's long term debt are $12.247 million in 1996, $75 thousand in 1997 and $58.619 million in 1998. s9 SINT TEMI DEBT As of December 31,1993, ACE had available for use bank ACE had no short term debt outstandmg as of ^ lines of credit of $150 million. ACE is charged commit-December 31,1993. As of December 31 1992, ACE had ment fees, which were not material, for these available $14.6 million in notes payable to banks outstanding. credit lines. As of December 31,1993, ACE had no com-and as of December 31,1991, had $20.6 million in com-pensating balance requirements. mercial paper outstanding. Additionalinformation regarding short term debt of ACE is as follows: 1000; For the year ended: 1993 1992 1991 Maximum amount of total.< bort term debt at any month end: Commercial Paper $45,500 $107,400 $82,700 Notes Payable to Banks 88,300 14,600 Average amounts of short term debt (based on daily outstanding balances): Commercial Paper $ 8,790 $ 31.567 $26,802 Notes Payable to Banks 29,269 2,785 Weighted daily average interest rates on short term debt: Commercial Paper 3.2% 4.0% 6.6% Notes Payable to Banks 3.2% 3.4 % Atta' tic Entrh n

T iOTES TO C O N S O LID AT E D 'I FINANCIAL STATEMENTS E10 (0.\\l.\\llDIEW W (OHIHUfIES i l Construction Program Energy and Capacity Arrangements { ACE's cash construction expenditures for 1994 are esti. UTiuTY mated to be approximately $150 million.. Current com-ACE has an arrangement for the purchase of125 MWs ( l mitments for the construction of major production and of capacity and related energy from PP&L through transmission facilities approximate $62.3 million, of September 30,2000. Capacity costs are charged to Pur-which it is estimated that $45.3 million will be expended chased Capacity expense on the Consolidated Statement in 1994.These amounts exclude AFDC and customer ofIncome and totaled $24.4 million, $25.1 million and contributions. $28.7 million in 1993,1992 and 1991, respectively. Energy cost is charged to Energy expense on the Consolidated insurance Programs g g g ACE is a member of certain insurance programs that million and $8.6 million, respectively. Commitments for provide coverage for decontamination and property capacity costs expected to be incurred over the next five damage to members' nuclear generating plants. years are $10.5 million, $10.9 million, $11.2 million, $11.6 Facilities at the Peach Bottom, Salem and liope Creek million and $12.3 million in each of the years 1994-1998, stations are msured against property damage losses up respectively, and aggregate $25.3 million thereafter. l to $2.75 bilhon per site under these programs. ACE has an arrangement for the purchase of 200 MWs - 1 in addition. ACE is a member of an insurance program of capacity and related energy from PECO through May which provides coverage for the cost of replacement 31,1994. Capacity costs charged to Purchased Capacity power durmg prolonged outages of nuclear units caused expense totaled $55.9 million, $52.5 million and $48.2 by certam specific conditions, Under the property and re-rnillion in 1993,1992 and 1991, respectively. Energy cost l placement power insurance programs, ACE could be as-charged to Energy expense amounted to $21.0 million. I sessed retrospective premiums in the event the insurers, $19.2 million and $22.6 million, respectively. ACE is losses exceed their reserves. As of December 31,1993, committed to capacity charges of $23.5 million in 1994. the maximum amount of retrospective premiums ACE These costs are subject to adjustment under certain con-could be assessed for losses during the current pohey ditions. ACE has another arrangement with PECO for year was $6.19 milhon under these programs. the purchase of energy only. Energy cost charged to The Price-Anderson provisions of the Atomic Energy Energy expense amounted to $19.0 million, $17.5 million Act of 1954, as amended by the Price-Anderson Amend-and $14.4 million. in 1993.1992 and 1991. resnectivelv. ments Act of 1988, govern liability and indemnification ACE periodically enters into arrangements with cer for nuclear mcidents. All nuclear facilities could be tain other electric utilities for short term generating and acessed. after exhaustion of private insurance, up to transmission capacity and the purchase of energy on an $79.2,a million each, payable at $10 milhon per year, as-needed basis, which are utilized to the extent they are per reactor and per mcident. Based on its ownership economic and available. Costs of capacity and energy share of ntl clear facilities, ACE could be assessed up t Wh to W N d li m N 4 $27.6 milhon per meident. This amount would be pay-lion and $16.4 million in 1993,1992 and 1991, respectively, able at $3.48 milhon per year, per incident. h Auanue F.nngy

ACE is a member of the Pennsylvania-New Jersey-In addition, discussions have commenced with a third 51aryland Interconnection (PJS1), an integrated power nonutility project sponsor to amend its power purchase pool that is connected with other utilities for the inter-agreement. Expected savings from changes to all three change of energy on an as-needed and as-available basis. nonutility power purchase agreements are estimated to ACE is required to plan for reserve capacity based on be between $15 million and $20 million annually in the aggregate PJS1 requirements allocated to member com-early years of the agreements. panies. ACE has satisfied its current reserve requirements. ACE also has an interchange agreement with the City of Vineland, New Jersey, which operates a municipal utility The provisions of Title IV of the Clean Air Act Amend-located in ACE's service territory. The cost of energy ments f1990 (CAAA) will require, among other things, purchased through interchange agreements charged to phased reductions of sulfur dioxide (SO:) emissions by 10 illi n tons per year, and a hmit or, S0r emissions Energy expense totaled $9.9 million, $9.4 million and $11.3 million in 1993,1992 and 1991, respectively. nati nwide by the year 2000, and reductions in emis-sions of nitrogen oxides (nod by approximately 2 mil-NONtmuTY lion tons per year. ACE's wholly-owned B.L England ACE has contracted and received BRC approval for a Units I and 2 and its jointly-owned Conemaugh Station total of 569 blWs of capacity and related - Iy from are affected during Phase 1 (1995) and all of ACE's other nonutility sou rces, primarily cogenerat( o project s fossil-fuel steam generating units are affected by Phase totaling 18131Ws are currently operational. ' me of these 11 (2000) of the CAAA. ACE is installing flue gas desulfu-projects is owned 50% by wholly-owned subsidiaries of rization equipment (scrubber) on B.L England Unit 2 AGl. Of the remaining two projects under construction, costing approximately $75 million to $80 million. By one project providing 188 31Ws is expected to be in oper-scrubbing B.L England Unit 2. Phase I SO2 emission ation in the spring of1994, and the other providing 200 requirements at e met for both units. Construction is blWs is expected to be operational in early 1995. Non-scheduled for completion in early 1995. The Conemaugh utility capacity costs charged to Purchased Capacity owners have elected to install scrubbers on Conemaugh expense totaled $30.2 million, $24.4 million and $1.0 Units 1 and 2, with ACE's 3.83% share of the total cost million, and energy purchased charged to Energy estimated to be $14 million. Construction for Conemaugh expense totaled $36.0 million, $27.6 million and $3.2 Unit 1 is to be completed in 1994, and for Conemaugh million, in 1993,1992 and 1991, respectively. Capacity Unit 2 in 1995. The jointly-owned Keystone Station is and energy costs from nonutility sources are recovered impacted by the SO2 and NOx provisions of Title IV of the through the LECs. CAAA during Phase 11, and the Keystone owners are study-ACE has concluded negotiations with one project spon. ing various methods of compliance. In addition, certain sor of a facility under construction lo amend its power pur. power purchase arrangements will be affected by the chase agreement in an effort to make the cost of energy CAAA, in amounts that are not presently determinable, obtained from the facility more economical for ACE's cus-Federal and state legislation authorize various tomers. The amendments, which have received BRC governmental authorities to issue orders comnelling approval, will result in savings from increased dispatch of responsible parties to take cleanup action at sites deter-the unit, lower energy payments and lower capacity pay-mined to present danger from releases of hazardous sub-ments. As part of the contract arnendants,in December stances. The various statutes irnpose joint and several 1993. ACE was required to pay $20 million to the project liability without regard to fault for certain investigative lenders for termination ofinterest rate swap agreements and cleanup costs for all potentially responsible parties. entered into by Ihe project developer. ACE has requested recovery of such payment in its 19941.EC filing. ACE has signed a letter ofintent with another nonu. tility project to amend its power purchase agreement. Subsidiaries of AGI have a 50% ownership interest in this project. ACE expects that the contract renegotia-tions with this facility will be concluded in 1994. Ananw Enun b t

OTES TO CONSOLIDATED FINANCIAL STATEMENTS ACE has received notification with respect to two sites Other within New Jersey as one of a number of alleged respon-ACE is subject to a performance standard for all of its l sible parties for cleanup and remedial actions, Both sites jointly-owned nuclear units. This standard is used by ] are contained within the National Priority Lists. As to the BRC in determining recovery of replacement energy one site, litigation has been instituted by the Federal costs. The standard establishes a target aggregate capac-government. The second site is the subject of a Notice ity factor within a zone of reasonable performance to be of Directive by the New Jersey Department of Environ-achieved by the units. Performance outside of the zone mental Protection and Energy (NJDEPE). The total results in penalties or rewards. Any penalties incurred amount of cleanup and remedia! measures associated would not be permitted to be recovered from customers with these sites as claimed by the authorities for all and would be charged against income. For 1993, the defendants is currently stimated to be $178 million. aggregate capacity factor of ACE's nuclear units is ACE believes that primary responsibility for the claims within the reasonable performance zone, which will will be borne by other parties and its share,if any, of the result in no penalty or reward. claims would not be material. ACE plans to defend these in 1990, the NJDEPE issued to Public Service Electric matters aggressively. & Gas (PS) a revised Draft Permit fer surface water dis-Public interest over the possibility of health effects charges for Salem Station. PS is the operator of the sta-due to electric and magnetic fields (EhlF) exposure is an tion,in which ACE has a 7.41% ownership interest. The emerging national issue. Some states have adopted EhlF Draft Permit contained stringent terms and conditions limits. To date, there is no conclusive scientific evidence and,if adopted as proposed, could require the construc-to support such concerns. The New Jersey Commission tion of cooling towers and the immediate shutdown of on Radiation Protection is considering promulgation the two generating units for up to a four-year period of regulations which wc;uld authorize the NJDEPE to pending this construction. Public hearings on the Draft review all new power line projects of100 kilovolts (KV) Permit have been had and PS has filed written com-or more. The promulgation of such regulations may ments and demonstrations, which PS believes establish affect the design and location of ACE's existing and its position that cooling towers are not required. PS esti-future electric power lines and facilities and the cost mates that if construction of cooling towers is neces-thereof. ACE has a program of Prudent Field Blanage-sary, under the most adverse scenario, the costs of ment, implementing reasonable measures, at modest construction are currently estimated to be $555 million, cost, to limit magnetic field levels in the design and of which ACE's share would be 7.41% Replacement location of new facilities. Such amounts as may be nec-power costs during such four-year outage would amount essary to comply with any new ENF rules cannot be to approximately $25 million per year for ACE. In addi-I determined at this time and are not in:luded in ACE's tion,a permanent de-rating of 5% of the station capacity 1994-1998 estimated construction expenditures. At the would also occur. ACE has been advised that on Slarch 4, April 14,1993 regular open public meeting of the BRC, 1993 PS submitted a Supplement to its Application for a motion was approved which required all New Jersey Renewal of the Salem, New Jersey Pollutant Discharge electric utilities to sponsor a survey of EhlF readings at Elimination System Permit. The Supplement proposes schools located near 69 KV lines and above. Ajoint sur-that Salem continue operation with a once-through vey protocol was developed among the New Jersey utili-cooling system, and includes provisions for plant modific-ties and approved by the BRC. Fifteen schools in ACE's ations and environmental enhancements to the Delaware service territory fall within the criteria. A report of sur-River estuary in the vicinity of the Station. On June 24, vey results was presented to the BRC in December 1993. 1993, the NJDEPE issued a draft permit which essentially The survey results demonstrated that the E31F levels incorporated as Special Conditions the proposal made by were within the expected range for transmission and PS in its Application Supplement. A final permit is distribution supply lines generally. expected to be issued by the NJDEPE subsequent to a public comment period. Two public hearings and a round table discussion for interested parties have been held. The NJDEPE has indicated it expects to issue a final permit in the first quarter of 1994.While it is not possi-ble to determine what action the NJDEPE will ulti-mately take with respect to the terms and conditions of b Ananuc Enne

the final Permit, certain environmental interest groups of 188 MWs of capacity from the independent power pro-have indicated their intent to challenge the NJDEPE's ducer upon commerut operation of the facility, which actions if, at the end of the public comment period, a is expected in the spring of 1994. final Permit is issued which contains the Special in 1993, ACE restructured its organization to better - Conditions proposed in the 1993 Draft Fermit instead of position itself in an emerging competitive environment. requiring that the Salem Station be retrofitted with _ During the year, ACE offered severance and incentive cooling towers In that event, PS would also participate programs to employees that were terminated or elected in any such further proceedings. to retire. ACE recorded expenses of $5.4 million, net ACE and the other nonoperating co-owners of the of Federal income taxes of $2.7 million, in the Consoli-Peach Bottom Atomic Power Station reached a settle-dated Statement ofIncome for 1993 for these and con-ment in 1992 with PECO, the operator of the station,in tinuing reorgamzation activities. At December 31,1993,' connection with litigation regarding the Nuclear Regula-the remaining liability for the program payments was tory Commission shutdown of the station from blarch $6.8 million. 1987 through October 1989. According to the terms of AGI through its subsidiaries has partnership interests the agreement. ACE received $18.5 million in October in common with affiliates of Columbia Gas System, Inc. 1992 as its share of the settlement. Of this amount, $3 (Columbia) in certain cogeneration pro.iects. Columbia million represented reimbursement for legal fees previ-is currently operating under Chapter 11 of the Federal ously incurred and expensed during the litigation, and llankruptcy Code, Columbia has filed a plan of reorgani-the remaining settlement proceeds of $15.5 million were zation. AGI cannot predict what effect,if any. Columbia's allocated 75% to shareholders and 25% to customers. situation may have on AGl's interests in these cogenera-This allocation was determined by ACE to be the amount tion projects. of costs borne by each respective group during the sta-The Energy Policy Act of1992 permits the Federal tion's outage. The BRC had approved this allocation sub-government to assess investor-owned electric utilities ject to later review. in 1992, ACE recorded $9.7 m.illion-that have ownership interests in nuclear generating. net of related Federal income taxes of $4.9 million, as facilities an amount to fund the decontamination and Other income, and $3.8 million as a liability to reim^ decommissioning of three Federally operated nuclear burse customers through the LECs. In August 1993, ACE enrichment facilities. ACE currently estimates that, agreed. in its then pending 1993 LEC filing, to allocate based on its ownership in five nuclear generating units, to customers an additional $3.8 million of the litigation its remaining assessment to be paid over the next 14 years settlement received in 1992,in 1993, ACE recorded $2.6 could amount to approximately $8 million. ACE has pro-million, net of related Federal income taxes of $1.3 mil-vided a liability in this amount at December 31,1993. lion, as Other Expenses, and $3.8 million as a liability t ACE has a regulatory asset of $8.4 million at December reimburse customers. This reimbursement is to be made 31,1993 as a consequence of this liability. Amounts are through the 1994 LEC which ACE has requested t currently being recovered in rates for this liability and become effective in June 1994. the regulatory asset is concurrently being amortized to ACE delivers process steam, water and by-product expense based on the annual assessment billed by the electricity under a contract with a third-party facility. Federal government. Equipment at ACE's Deepwater Station provides these The Financial Accounting Standards Board issued g services. In 1993, ACE received $4.3 million for the sup-Statement No.112 " Employers' Accounting for Post-ply of steam and related services. and $8.3 million in rev' employment Benefits " This statement is effective for enues for electric services rendered to the third party. the Company in 1994 and concerns benefits provided to ACE received a notice of contract termination from this inactive and terminated but not yet retired employees. third party. effective August 31,1994, at which time such it is expected that the annual costs calculated under steam and electric requirements are to be served by an the new standard will not be significantly different from independent power producer. ACE is; resently negotiat-those recorded under the current method of accounting ing contract termination provisions, including the timing and that any additionalliabilities recorded will not be of service termination, equipment removal and termi~ material to the financial statements, nation payments. ACE has contracted for the purchase Aninnannn b

OTES TO CONSOLIDATED FINANCIAL STAYEMENTS 511 LE.tSES 4 ACE leases various types of property and equipment reduced as the fuel is burned and are increased as addi-for use in its operations. Certain of these lease agree-tional fuel purchases are made. No commitments for ments are capital leases consisting of the following at future payments beyond satisfaction of the outstanding f December 31: obligation exist. Operating expenses for 1993,1992 and tomn 1993 1992 1991 include leased nuclear fuel costs of $13.9 million, Production plant 513,521 $ 13.521 $13.5 million and $14.7 million, respectively, and rentals Less accumulated amortization 8,840 8.0 L and lease payments for all other capital and operating Net 4,675 5A73 leases of $4.8 million, $4.8 million and $4.5 million. I as p erty-net S 2 noncancellable lease agreements are not signihcant to ACE has a contractual obligation to purchase nuclear ACE's operations. Rental charges of other subsidiary fuel for the Salem, Hope Creek and Peach Bottom stations. companies are not significant. The asset and related obligation for the leased fuel are E12 IR.\\hTBLY Hm(1\\L RESf LIS RHf DITED) Quarterly financial data, retlecting all adjustments necessary in the opinion of the Company for a fair presentation of such amounts. are as follows: operating operatir:g . Vet fierenues income income Earnmqs Dividends PaiJ quarter (000) t000) (000) Per Share Per Share 1993 1st $203,656 $ 35,445 $ 19,995 $.38 $.38 2nd 192,538 27,381 11,093 .21 .38 3rd 268,883 68,580 52,329 .99 .385 4th 200,596 28,177 11,880 .22 .385 Annual $865,675 $159,584 $ 95,297 $1.80 $1.53 Ist $ 197,833 $ 33,290 $ 27,937 $.55 $.375 2nd 187,387 24,949 10,908 .21 .375 3rd 236,892 54,118 39,570 .76 .38 4th 194,713 24,811 7,795 .15 .38 Annual $ 816.825 $ 137.168 $ 8 6,210 $ 1.67 $ 1.51 Individual quarters may not add to the total due to round-The revenues of ACE are subject to seasonal fluctuations ing and the effect on earnings per share of increasing due to increased sales and higher residential rates during average,iu Tiber of common shares outstanding. the summer months. .? b AuanUc Energy

ANAGEMENT'S DISCUSSION AND A N A LY SIS OF FINANCIAL CONDITION L AND RESULTS OF OPERATIONS Atlantic Energy, Inc. (the Company or parent) is the Financial Results parent of a consolidated group consisting of the follow-Consolidated operating revenues for the twelve months ing wholly-owned subsidiaries: Atlantic City Electric ended December 31,1993,1992 and 1991 were $865.7 Company (ACE), Atlantic Energy Technology, Inc. (AET), million, $816.8 million and $808.4 million, respectively. Atlantic Generation, Inc. (AGI), Atlantic Southern The increased revenues for 1993 and 1992 reflect the Properties, Inc. (ASP) and ATE Investment, Inc. (ATE). effect of net rate increases effective in those years. The ACE, the primary subsidiary, is an electric utility regu-revenue increase in 1993 is also due to increased sales lated by the New Jersey Board of Regulatory Commis-of energy as a result of summer weather, sioners (BRC). ACE has a wholly-owned subsidiary that Consolidated earnings per share for 1993 were $1.80 operates certain cenerating facilities. AET has a wholly-on net income of $95.3 million, compared with $1.67 owned subsidiary that owns patented technology for geo-on net income of $86.2 million in 1992 and $1.75 on thermal heating and cooling systems. AGI is engaged in net income of $85.6 million in 1991. In 1993. ACE con-the development and operation of cogeneration and tributed $1.73 to consolidated earnings, primarily as a alternate energy projects through various partnership result ofincreased kilowatt-hour sales from more normal arrangements. ASP owns, develops and manages com-summer weather. ACE's 1993 carnings were reduced by mercial real estate property. ATE manages its portfolio approximately $.10 as a result of nonrecurrmg charges for of leveraged lease investments and provides financing reorganizatian activities. In 1992, ACE contributed $1.74 and fund managen'ent to an affdiate, to repor'ed consolidated earnings. ACE's 1992 earnings The Company's business plan will continue to be con-were increased by several nonrecurring items, including centrated on the operatians of ACE. The emergence of $.15 from a settlement of a lawsuit with PECO Energy competition in the area of electric generation, relatively Company (formerly Philadelphia Electric Company slow growth in energy sales. Federal deregulation of -PECO) relating to the shutdown of the Peach Bottom i wholesale energy sales, prospective retail wheeling Atomic Power Station several years ago and $.11 from initiatives coupled with a public utility's obligation to certain other nonrecurring items. Earnings in 1992 serve, and the need to mitigate future rate increases, has were adversely affected by lower energy sales resulting caused ACE to reexamine its traditional approach to its from cooler than normal summer weather conditions business. ACE's current business plan recognizes the and decreased sales to Industrial customers. increasingly corrpetitive nature of the electric energy Nonutility operations resulted in net income for l business and the need to encourage economic growth 1993 of $3.7 million and losses for 1992 and 1991 of l and stability in the service territory and surrounding $3.4 million and $5.4 million, respectively. Nonutility I region. ACE is reevaluating its revenue requirements net income for 1993 is primarily the result of higher and service pricing, the implementation of additional earnings of AGI derived from the full year's commercial cost controls and the development of new sources of operation of two of its cogeneration projects. The loss revenue. Nonutility business strategies are expected to in 1992 is primarily due to provisions made by AET re-pursue new investment opportonities closely Nlated to lating to restructuring of certain business activities. the utility business. That loss is offset,in part, by earnings of AGI resulting from the initial commercial operation during the year of two ofits cogeneration projects and earnings of ATE resulting from lower interest expense. The loss recog-nized in 1991 is attributable to ACl's equity share of writedowns of carrying values by one of its partner. ships of certain cogeneration projects that were subsequently sold. mne ene 03

ANAGEMENT'S DISCUSSION AND A N A LY SIS OFFINANCIAL C O N DITIO N AND RESULTS OF OPERATIONS In June 1993, the quarterly dividend on Common equity through public offerings. optional cash purchases Stock was increased from $.38 to $.385 per share, or an under the Dividend Reinvestment and Stock Purchase annual rate of $1.54 per share. information with respect Plan iDRP) and ACE's employee benefit plans, are shown to Common Stock for the period 1991-1993 is as follows: as follows: 1993 193 IW1 lommcc or rommon W A 1993 Iw2 /WI Dividends Paid Per Share $ 1.53 $ 1.51 $ 1.49 Public Offerings flook Value fer Share $15.62 $ 15.17 $ 14.84 Shares issued 4.000,000 Annualized Dividend Proceeds 1000) $67,140 Yield 7.0% 6.6% ,.3 % DRp Optional Cash Purchases Return on Average Shares issued 690,466 719.324 301,272 Common Equity 11.7 % 11.1 % 12.1 % Proceeds (000) $15,985 $16,034 $ 5,537 Total Return (Dividends Employee lienefit Plans paid plus change in Shares issued 8,033 10.897 12,416 l l share price) o.6% 20.2% 29.8 % _ Proceeds (000) 258 $ 259 $ 249 Market to llook Value 139% 152 % 138 % l Price /Earnhgs Ratio 12 14 12 Additional common equity is provided by reinvested Closing Price-New York dividends through the DRP. Common shares issued Stod Fachange $21.75 $23.13 $20.50 from such reinvested dividends in 1993,1992 and 1991 Liquidity and Capital itesources were 609,663, 5a,329 and 630.410, respectively. The overview Company's current financing plans for 1994-1996 con-The Company's cash flows are dependent on the cash template the issuance of approximately $14 millio iin flows of its subsidiaries, primarily ACE. Principal cash in-additional common equity, to be obtained through the DRP. flows of the Company are dividends from ACE and funds provided by the issuance of Common Stock. Principal Major cash outflows of the Company were as follows: cash outflows of the Company are investments (capital 1883 1"2 1"1 contributions and advances) in its subsidiaries for their Dividends to Shareholders $s1.3 $78.3 $74.1 mvesting activit.ies and dividends to common sharehold' Advances and Capital ers. Cash invested in ACE is utilized primarily for the cont:ibutions' construction of utility generating, transmission and dis _ to Subsidiaries 29.8 24.1 83.8 tribution wcilities, redemption and maturity oflong and ' M d nmuna short term debt and redemption of preferred stock. Cur-ACE rent investing activities of the nonutility subsidiaties Cash const ruction exnenditurn for the 1441 1mn ar e primmily for the developmeni of nonuiility power generation projects. period amounted to $441.2 million and included expen-ditures for a new combustion turbine unit, upgrades .fo facilitate the activit.ies and operations of the to existing transmission and distribut.ica facilit.ies and subsid.iane3. separate credit support agreements ex. t is compliance with provisions of the Clean Air Act Amend-between the C,ompany and ATE, and ASP. In addition, ments of 1990 iCAAA). AL,E,s current estimate of cash agreements between the C.ompany and its subsidianes construct. ion expenditures for the 1994-1996 pe nod provide for allocat. ion of tax liabilities and benefits gen- . $3,e,,e., m.llion. These estimated expenditures reflect is 3 i erated by the respective subsidiar - necessary improvements to transmission and distribu-In 1993,1992 and 1991, tae Company recorded $81.3 tion facilities and compliance with provisions of million, $78.3 million and $74.1 million, respectively, in the C AAA. I dividends from ACE. 0ther sources of funds available to ACE also utilizes cash for mandatory redemptions the Company, which.incluJe the issuance of common of Preferred Stock and maturities oflong term debt. Optional redemptions of securities are reviewed on an ongoing basis with a view toward reducing the overall cost of funds. 05 muc Encru

Redemptions of Preferred Stock (at par or stated expenditures and internally generated funds in the indi-value) and redemptions, reacquisitions and retirements, vidual years. Through 2000, ACE's cash flows will be and maturities of First Mortgage Bonds for the period positively affected by the recovery ofits Unrecovered 1991-1993 are shown as follmvs: Purchased Power Costs. ACE expects that such recovery 1993 In2 1H/ will provide $14 million, $15 million and $16 million in preferred Stock cash flows in 1994,1995 and 1996, respectively. (Series] On an interim basis, ACE finances that portion ofits 9.96% (Shares) 48,000 8,000 8.000. $8.25 (Shares) 5,000 2.500 2.500 construction costs and other capital requirements in Aggregate Amount (000) S 5,300 $ 1.050. $ 1,050 excess ofinternally generated funds through the issuance First Mortgage Bonds of unsecured short term debt consisting of commercial Prmcipal Amount retired 1000) $344,773 $10.350 $49.000 paper and borrowings from banks. Permanent 6nancm. g by ACE is undertaken by the issuance ofits long term First Mortgage Boods redeemed or acquired and debt and Preferred Stock and from capital contributions retired in 1993 were as follows: by the parent company. ACE's nuclear fuel requirements tsate scrics />rincin/ Ammmt mooi rrice m associated with its jointly-owned units have been March 1993 8% due 1996 $ 95,000 100.91 nnanced through arrangements with a third party. March 1993 8 %% due 2000 19,000 102.41 In 1993, ACE issued and sold $469 milh.on oflong March 1993 8% due 2001 27,000 102.53 March 1993 4 K% due 1993 9.540 100.00 term debt consisting of $240 million of Series B Medium September 1993 9 %% due 2019 69.233 110.95* Term Notes, $225 million of First Mortgage Bonds and September 1993 8 u% due 2016 125.000 104.80 $4 million of Pollution Control Bonds. The proceeds amaW " from the 1993 financings were used for refunding Scheduled debt maturities and mandatory Preferred higher cost debt, as detailed above, and construction Stock sinking fund requirements aggregate $59 million purposes. In 1992, ACE issued and sold $60 million of for the years 1994-1996. Series A Medium Term Notes, the proceeds of which On or before Aprd I of each year, ACE and other New were used for ACE's construction program. In 1991, ACE Jersey utilities are required to pay state excise taxes to issued and sold 700,000 shares of $7.80 No Par Preferred the State of New Jersey. In March 1993, ACE paid $139.2 Stock and issued $38.865 million of Pollution Control million. Included in this amount was $45 million repre. Bonds. The proceeds from the 19916nancings were senting one-half of an additional year's tax payment, as used for construction and refunding ACE's 11% required by state law. This payment was funded by ACE Pollution Control Bonds due 2011. During the three-through the issuance of short term debt. ACE expects to year period 1994-1996, ACE expects to issue $160 mil-pay state excise taxes of approximately $140 million in lion in new long term debt, and in such period ACE March 1994, which will include the final installment of expects to receive $14 million in capital contributions one-half the required additional year's tax payment. ACE from the Company. expects to fund this payment with short term debt. In ACE's debt securities are rated "A-/A3" by the December 1993 ACE paid $20 million in connection major rating agencies and its Preferred Stock is rated with renegotiation of a nonutility purchased power con. "BBB+/ Baal."In October 1993, ACE was advised that a tract. ACE has deferred such amount on its Consolidated major rating agency lowered its rating on ACE's out-Balance Sheet, pending recovery through its LEC. standing securities as follows: senior secured debt to "A " ACE's cash flows from operating activities after divi-from "A," senior unsecured debt and preferred stock to dends on Preferred Stock and Common Stock (internal "BBB +" from "A," and commercial paper to "A-2" from generation) amounted to $75.9 million. or 54.9% of "A-1."In November 1993, ACE was advised that a second 1993 construction expenditures. In 1992 and 1991, major rating agency lowered its ratings of ACE's out-ACE's internal generation was $116.8 million and $85.2 standing securities as follows: first mortgage bonds, million, and represented 89.3% and 49.4% respectively, secured pollution control revenue bonds and secured of construction expenditures. For the three-year period medium term notes to "A3" from "A2," debentures to 1994-1996, ACE's internal generation is expected to "Baa1" from "A3." preferred stock to ' Baal" from "A3." average 75% of currently estimated construction expen. and commercial paper to "P2" from "Pl."In taking j ditures. However, actual levels may vary within the such action, both agencies cited increasing business period based upon specific amounts of construction risks from competition, significant purchased power AHanOc Energy b

ANAGEMENT'S DISCUSSION AND A N A LY SIS OF FINANCIAL C O N DIYlO N AND RESULTS OF OPERATIONS commitments, anticipated modest sales growth and high y at #2 electric rates relative to the Slid-Atlantic region as fac. u tors contributing to their respective decisions. W 'a U u Provisions of ACE's charter, mortgage and debenture a agreements can limit, in certain cases, the amount and type of additional financing which may be used. At af

December 31,1993 ACE estimates additional funding capacities of $293 million of First Mortgage Bonds, or g

$463 million of Preferred Stock, or $345 million of un. secured debt. These amounts are not necessarily additive. AET AET invests in and manages investments in companies with energy related products and technologies. AET's only investment at December 31,1993 is a capital invest-ment of $3 million in a wholly-owned subsidiary that e owns a patemeu technology and has proprietary know-ledge relating to geothermal heating and cooling sys-tems. AET obtained the funds for this investment ' so to si through capital contributions from the parent company, se so ei sa es. en es The amount of this investment has been written down from $5.1 million at December 31.1992 as a result of planned reorganization activities that had been provided for in 1992. The subsidiary discontinued its operations and will now concentrate on licensing its proprietary knowledge. In 1993 AET received insuiance proceeds of $500 thousand through its subsidiary. Additional invest-ments by AET will be under review in 1994 but are not 11;' l, expected to be significant. L,' l' - AGI w ,i AGI s activities are represented by partnership interests - ~ in cogeneration projects. At December 31,1993, total investments amounted to $24.5 million. Cash outlays for investments (comprised of capitalinvestment, advances and loans) by AGl for the period 1991-1993 l totaled $15.1 million. ACI obtained the funds for its investments through capital contributions from the parent company. During the period 1991-1993, AGI utcome of these discussions cannot be determined at this time. received distributions from the partnerships totaling $6.4 million from return of investment and repayment ASP of outstanding advances and loans. A cogeneration pr - ASP's real estate investment at December 31,1993 is ject is under construction and is expected to become a 280.000 square-foot office and warehouse facility in operational in May 1994 requiring an equity payment Atlantic County, New Jersey, with a net book value of of $2 million. This commitment will be funded by a cap- $13.2 million. As of December 31,1993, ASP's invest-ital contribution from the parent company. AGI expects ment has been funded by capital contributions from the to invest an additional $8 million in domestic indepen' parent company and borrowings under a loan agreement dent power projects in the years 1994-1996. Operators with ATE. ASP's current agreement with ATE provides of a nonutility power project in which AGI subsidiaries for the repayment of such borrowings on or before have a 50% ownership interest are presently negotiat-December 31,1994. Extensions to repay these borrow-ing amendments to its power purchase contract. The ngs have been routinely granted in the past. ASP gener-b Adanne Enugy _J

~ 'h a j ggG E'M E N 7 t SSD 8 S C U'S S'I'O NO A N DS z. < ~ l A' N A 1.Y'S l'S( On F I N A N 'C I AMC O N 'D' I T:t O N L AIN D'r 11 E S U L TlSi O F 0 P E'R ALT I O N Si s 1 .q L commitments) anticipated mlodest sales growth and high [: ' " electric rates relative to the MidiAtlantic region as fac- ~ 4 1 C l tors contributing to their respective decisions. ^

n. s

) y IProvisions of AClfs charter,.mortdage and debenture m . agreements.canl limit,in certain ca$es, the amount and ' a b' Ltype of ad'ditional finanEing which may b'e used. At ' 3 1 qH ('

December 31/1993, ACE estimates additional fundingi i

-- capacities of $293 million of First Mortgage Bonds, or.. b s$463 million of Preferred Stock,;or $345 million of un- [( secured debt. These amounts are not necessarily additiven l-l- -AET f' iAET invests in and manages' investments in companies - 5 x L with energy-related products and technologies (AET's?- only investment al December 31,1993 is a capital invest? rnent of $3 million in a wholly-owned subsidiary that. 2 . owns a patented technology and has proprietary know-y -ledge relating to geothermal heating snd cooling sysi = tems. AET 6btained the funds for this investment y, c

through capital contrib'utions from the parent company,1 A m 9a

' ha

J*u 1

89 90 o The amount of this investment has been written dovm from $5.1 million at December 31,1992 as a result of - m planned reorganization activities th'at had been provided.

for in 1992. The subsidiary discontinued its operations?

and will now concentrate on licensing its proprietary ; knowledge. In 1993, AET received insurance proceeds of. ~ $500 thousand through its subsidiary. Additional invest-ments by AET will be under review in 1994 but are not' ~ ~ expected to be significant. 4GI AGl's activities are represented by partnership interests - 1 in cogeneration projects. At December 31,1993, total ~ investments amounted to $24.5 million. Cash outlays. for investments (comprised of capital investment, advances and loans) by AGI for the period 1991-1993. totaled $15.1 million. AGI obtained the funds for its investments through capital contributions from the outcome of thesidiscussions cannot be determined at parent company. During the period 1991-1993, AGI. this time. received distributions from the partnerships totaling.: $6.4 million from return of investment and repayment - ASP. of outstanding advances and loans. A cogeneration pro-ASP's real estate investment at December 31,1993 is . ject is under construction and is expected to become. _ a 280,000 ' square-foot office and warehouse facility in : operational in May 1994 requiring an equity payment ' Atlantic County, New Jersey, with a net book'value of J . of $2 million. This commitment will be funded by a cap- $13.2 million; As of December 31,1993; ASP's mvest-ital contribution from the parent ce npany. AGl ~ expects ment has been funded by capital contributions from the to invest an additional $8 million in domestic indepen-parent company and borrowings under a loan agreement dent power projects in the years 1994-1996. Operators with ATE. ASP's current agreement with ATE provides - of a nonutility power project in which AGI subsidiaries for the repayment of such borrowings on or before have a 50% ownership interest are presently negotiat' December 31,1994. Extensions to repay these borrow, -ing amendments to its power purchase contract. The ings have been routinely granted in the past. ASP gener.: j0 - " AuandcMed .. 7J

w .+

3 ; a, v4 t

'i a l - 2 1obtained funds for its business adtiClies and ' loans to - ' ASP thr.ough caA.21 contributionA from the pareht como 2a i* ,,' e pany and external borrowings.' ATE has outstanding $151 i million t rincipal amount of 7.44% Senior Notes due 1999. 2w A' revolving credit and term loan facility for borrowings ; ~ . of up to $35 million is available to ATE. 'At December 31k 1993[there were no borrowings outstanding under th'is M ~

facility. ATE's positive cash flows la're proylded from lekse rental receipts and realization'6f existing iax bensfits' a -: a generated by the leveraged liases sufficient to sustain 1 2

. / i 1 operations. It is' exi ected that'these will continue to be 9 d the only sources of cash flods for the foredekable future. RESULTS OF OPERATIONS ' 10perating results are d' ependent upon th4 performance ; (of the subsidiaries, primsrily ACElSince ACE is thi i principaliubsidiary within the consolidated group, the ; + .o Soperating results presented in the Consolidated States Ement ofincome are those of ACE,after elimination'ofe

n. so n

.2 .a . "a,so ^ transactions among' members of the consolidated group. e .2 m J Results of the nonutility companies are reported in)

OthsrIncome/

~ s During 1993, ACE under'took reorganization efforts. t to enable it to streamline its operat'i6ns and become - > more competitive. Provisions for. severance and early retirement costs' associated with the reorganization ' amounted to $5.4 million after taxes, or $.10 per share

of Common Stock.

a . Revenues, Operating Revenues-Electric increased 6.0% and LOW

--- 1 in 1993 dna 1932, muniively. C6 pip 6nenii6iihe avec.

~ allchanges are shown as follows: 'finillions) 1993' Im

Base Revenues '

S12.2- . $ 11.0. 9

Levelized Energy Clauses

- (5.0) i .23.0 . Kilowatt-hour Sales. 42.s. 1 28.7)? t Unbilled Revenues .(1.2). -(2.0) ates sufficient cash flows from its rental insome to sus-- Sales for Resale - 0.7 ~ .5.5' ~ Other (0.4) - (0.3)' L tain its operations. Oyer half of the office space is ' ' Tota! .s48.9; $ -.815 ~ presently leased to ACE.' ASP and ACE are exploring Base Revenues increased in 1993 as a result of a $12.9 options to modify ACE's current lease obligations. In the second ha' lf of 1993, another tenant leased all the avail-n bage rate increase e#ectwe m Odokr M92j Base: nu ' able warehouse space. No real estate activity beyond the - evenues increased in 1992 as a result of the Octobere 992 increase and a $50.0 million base rate increase effec- . existing site is contemplated at this time by ASP. t.tve m July 199L Levelized Energy Clause (LEC) revenues -ATE. decreased in 1993 as a result'of the net effects'of a $10.9

ATE has invested $77.3 million in leveraged le'ases of million increase effective in October 1993 and an $8.5 -

three commercial aircraft and two containerships. ATE million decrease effective in October 1992. LEC revenues

has loans outstanding to ASP, including unpaid interest, increased in 1992 as a result of the October 1992 decrease ;

. which totaled $8.9'million at December 31,1993. ATE and a $21.3 million LEC increase' effective in June 19's1. E notig r.nngy.

obtained funds for its business activities and loans to 1 - 1 8#

g

, y e ASP through capital contributions from the parent com-pany and external borrowings. ATE has outstanding $15 million principal amount of 7.44% Senior Notes due 1999. ase m A revolving credit and term loan facility for borrowings . m of up to $35 million is available to ATE. At December 31, t - 1993, there were no borrowings outstanding under this 8" facility. ATE's positive cash flows are provided from lease s-m u .. M M rental receipts and realization of existing tax benefits n generated by the leveraged leases sufficient to sustain ~ operations. It is expected that these will continue to be ~ [a the only sources of cash flows for the foreseeable future.

8 Me m

ni RESULTS OF OPERATIONS Operating results are dependent upon the performance of the subsidiaries, primarily ACE. Since ACE is the Y z. se principal subsidiary within the consolidated group, the operating results presented in the Consolidated State-ment of Income are those of ACE, after elimination of transactions among members of the consolidated group. e' e. se so ei se es-se so es sa sa Results of the nonutility companies are reported in ms.... Other Income. During 1993. ACE undertook reorganization efforts to enable it to streamline its operations and become .1,.,..,,:, w $,"[,7,7,7 ' P , [l,,L",[','ll,( more competitive. Provisions for severance and early i ~ m,, w a,,, s m m,r e retirement costs associated with the reorganization eoine< w amounted to $5.4 million after taxes, or $.10 per share ,, n o u,, c m, ..m. .m,. 07 C... gj[g'lll of Common Stock. ~,,,..,..,..,,,.s..s.,.m Revenues nm m,,.,. s,,..# ,,,,,_,,,o .. aaan. uom, ,.,,,g.,,, m,f g,y. y fg,., u.,m,,,s.g.yg g n us._ s, o .,,m.,,,,,,- Operating Revenues-Elcetric increased 6.0% anJ 1.0% tu nu a :nw.. a.n av 3w,,,,,,,, n, 3 g,ws %.m,anm m anw.u,,.wr sia a ssa assu 1304, Itopettivtly. LUIUponent5 of me over- ((,), , ), Ans, l.;f,C,, f;.fllJ;'3ll: ' all changes are shown as follows: , c

..,s.w. i+is.. r n, h cra,,,

%nm are, a,, a..,,, anh ' i tmillioral 1993 im 'n,a! i s wqta,a J.n,d th . a, a wa,se o s.w. :. liase Revenues $12.2 $11.0 "an n rn. an..'"" ' u Levelized Energy Clauses (S.0) 23.0 '[,l,j,',';M, ' ' Kilowatt-hour Sales 42.0 (28.7) c Unbilled Revenues (1.2) (2.0) Sales for Hesale 0.7 5.5 ates sufficient cash flows from its rental income to sus-Other (0.4) 10.3) tain its operatims. Over half of the office space is Total S48.9 $ 8.5 presentiv 1, ased to ACE. ASP and ACE are exploring ~ Base Revenues. increased m. 1993 as a result of a $12.9 options to n >dify ACE,s current lease obligations. In the million base rate increase effective m October 1992. Base second half of 1993, another tenant leased all the avail-Revenues.mcreased in 1992 as a result of the October able warehouse space. No real estate activity beyond the 1992 increase and a $50.0 milh.on base rate increase effec-existing site is contemplated at this time by ASP. tive m July 1991. Levelized E.nergy Clause (LEC) revenues ATE decreased in 1993 as a result of the net effects of a $10.9 ATE has invested $77.3 million in leveraged leases of million increase effective in October 1993 and an $8.3 three commercial aircraft and two containerships. ATE million decrease effective in October 1992. LEC revenues has loans outstanding to ASP, including unpaid interest, increased in 1992 as a result of the October 1992 decrease which totaled $8.9 million at December 31,1993. ATE and a $21.3 million LEC increase effective in June 1991. Atlantic Energy b

ANAGEMENT'S DISCUSSION AND A N A LY SIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Changes in kilmeatt-hour sales are discussed under and 8.1% of 1993 industrial kilowatt-hour sales and rev- " Billed Sales to lillimate l:tility Customers." Overall, the enues, respectively. Sales to this customer amounted to combined effects of changes in rates charged to customers 1.6"S of 1993 total kilmvatt-hour sales and 1.0% of 1993 and kilmvatt-hour sales resulted in increases of 0.8% and total energy revenues, ACE will also lose additional rev-4.4% in revenues per kilowatt-hour in 1993 and 1992, enues from this customer for other services that respectively. The changes in Unbilled Revenues are a amounted to $4.3 million in 1993. result of the amount of kilowatt-hours consumed by ulti-Costs and Expenses mate customets at the end of the respective periods, which Total Operating Expenses increased 3.9% and 2.4% in I are affected by weather and economic conditions, and l the corresponding price per kilowatt-hour. The changes 1993 and 1992, respectively. Included in these expenses are the costs of energy l purchased capacity, operations, l in Sales for Hesale are a function of ACE's energy mix maintenance, depreciation and taxes. strategy,which in turn is dependent upon ACE's needs for energy. the energy needs of other utilities participat-Energy expense reflects costs incurred to meet load ing in the regional power pool of which ACE is a mem. requirements, energy supply mix used and operation of ber, and the sources and prices of energy available. the LECs. Changes in costs reflect the varying availabil-ity oflow-cost generation from ACE-owned and purchased Billed Sales to Ultimate Utility Customers energy sources, and the corresponding unit prices of the Changes in kilowatt-hour sales are generally due to energy sources used, as well as changes in the needs of changes in the average number of customers and average other utilities participating in the Pennsylvania-New customer use, which is affected by economic and weather Jersey-Maryland Interconnection.The cost of energy is conditions. Energy sales statistics, stated as percentage recovered from customers primarily through the opera-changes from the previous year, are shown as follows: tion of the LECs. Earnings are not affected by Energy expme kam NW Ms aN aMM to maid b 1993 /w tm a= w w associated LEC revenues. In any period, the actual n- % w, n .m s 34, n sus .imount of LEC revenue recovered from customers will Residential 6.7% 5.9% 0.8% (2.M%(3J)% 0.9 % he greater or less than the actual amount of energy cost Commercial 5.1 3.2 1.9 (1.5) ( 3.2 ) 1.5 lodustrial 2.6 4.6 (1.9) ( 10.2 ) 19.u go m incurred in that period. Such respective overrecovery or Other 1.2 1.6 (.4) m.3 ) 10.3) underrecovery of energy costs is recorded on the Consol-Total 5.4 4.4 0.9 (3.5) 14.5) 1.u idated Balance Sheet as a liability or an asset, as appro-In 1993. total kilowatt-hour sales increased primarily priate. Amounts in the balance sheet are recognized in I " * "" ""U due io ihe tolder winier iempeviured duiiog the iirsi quarter, and more normal temperatures during the third expense during the period in which they are subsequently quarter in contrast to the cooler temperatures in the rec vered through the LECs. ACE was underrecovered ) same period of 1992. Improved economic conditions by 57.2 million and overrecovered by $8.1 million at I)ece her 31,1993 and 1992. respectively. also contributed to the increase in 1993 sales. In 1992, total kilowatt-hour sales declined primarily due to lower in 1993. Energy expense decreased 1.1% primarily be-sales to Industrial customers because two large indus-cause there was a larger amount of fuel costs underrecov-t rial customers obtained primary service from indepen-cred in 1993 than in 1992. Production-related energy dent nonutility sources. Sales also dechned in 1992 due costs for 1993 increased by 6.7% largely due to increased to cooler temperatures in the third quarter, generation of 4.8%. The average unit cost for energy in ACE continues to experience the effects of competi. 1993 increased to 1.82 cents per kilowatt-hour compar-tion in the electric utility business. One large Industrial ed to 1.80 cents per kilowatt-hour in 1992. The 1993 in-customer is expected to receive primary electric service crease in the per unit cost is a result of increased amounts from an independent power producer commencing in of higher-cost energy from nonutility sources and a the spring of 1994. This customer accounted for 10.1% decreased supply of lower cost energy from coal I Us an om.

sources. Energy expense for 1992 decreased 11.9% pri-Preferred Stock Dividend Requirements of ACE marily due to an underrecovery of fuel costs in 1992 com-decreased 2.3% in 1993 and reflects the redemption of pared to an overree try in 1991. The decrease was 48.000 shares of 9.96% No Par Preferred Stock in Slay partially offset by increased production-related energy 1993. Preferred Stock Dividend Requirements of ACE costs associated with a 3.4% increase in net generation. increased 8.5% in 1992 and reflects the issuance and Purchrsed Capacity expense retlects entitlements to sah> of 700.000 shares of $7.N0 No Par Preferred Stock in i generating capacity owned by others. Purchased Capacity Slay 1991. Embedded cost of Preferred Stock as of expense increased 7.4% in 1993 and 30.1% in 1992 pri_ December 31.1993,1992 and 1991 was 7.7%,7.7% and I marily due to capacity supplied by two nonutility power 7.8% respectively. producers beginning in September 1991 and 31 arch New accounting standards concerning the account-1992, respectively. ing for postretirement benefits other than pensions and Operations expense increased 8.9"4 in 1993 due pri. income taxes became effective for the Company in 1993. marily to corporate reorganization activities by ACE. The effect of adopting these standards did not materially Operations expense increased 2.8% in 1992 primarily affect net income in 1993, primarily because the incre-due to nuclear decommissioning expenses previously mental costs to ACE resulting from these standards have classified as depreciation expense, in accordance with been deferred on the Consolidated Balance Sheet subject BRC requirements. >laintenance expense decreased to future recovery in rates. 9.0% and 4.1% in 1993 and 1992, resnectively, due to outlook the timing of maintenance projects. The nature of the electric utility business is capitalinten-The method of computing state excise taxes was sive. ACE's ability to generate cash flows from operating changed by legislation in 1992 to a unit tax that is based activities and its continued access to the capital markets ~ on kilowatt-hours sold during the year. In prior years, is affected by the timing and adequacy of rate relief, com-such taxes were based on revenues collected from cus-petition and the economic vitality of its service territory. tomers. State Excise Taxes expense increased in 1993 The financial performance of ACE will be affected in and 1992 by 6.4% and 10.2% respectively. The increase the future by the level of aales of energy and the impacts in 1993 is due to higher kilowatt-hour sales during the of regulation. The amount earned on capital im estments year and an additional amount of tax required under by the utility is subject to general business conditions recently enacted state law. The increase in 1992 reflects and regulations. Other issues which may impact the additional tax liabilities incurred as a result of changes electric utility business include public health safety. in legislation-environmental legislation and competition. Federal Income Taxes increased 21.9% and 2.5% in Changes in operating revenues in the future will result 1993 and 1992, respectively, due to an increased level of from changes in customer rates, energy consumption taxable income and in part to the increase in the Federal and general economic conditions in the service area as income tax rate to 35% from 34% for 1993. well as the impacts ofload management and conserva-Interest on Long Term Debt increased 11.4% in 1993 tion programs instituted by ACE. ACE's revenues could reflecting the net effects ofissuance of $469 million of also be affected by the loss of sales through increasing First Stortgage Bonds during the year, and the maturity, competition in the generation of electricity by other redemption and reacquisition of various series of First utility and nonutility sources. Stortgage Bonds totaling $344.S million principal The emergence of competition among suppliers of amount. Interest on Long Term Debt increased 3.3% electricity may require ACE to create new rate structures in 1992 reflecting the net effects ofissuance of $60 mil-and offer dbcounts to its Commercial and Industrial lion of 31edium Term Notes in Slay 1992 with a weighted customers. ACE has petitioned the BRC to permit hotel / average interest rate of 7.75% and the maturity of $10.35 casino customers to take electric service under existing million rincipal amount of First 31ortgage Bonds,4% commercial rate tariffs, which are lower than those rates Series due in July 1992. At December 31,1993.1992 and currently charged to hotel / casinos. If all hotel / casinos 1991, ACCs embedded cost oflong term debt was 7.8% make such an election. ACE's annual revenues would be 8.8% and 8.9%. respectively. reduced by approximately $5 million. We En g t

ANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Net income of ACE can he affected by the operational The Clean Air Act Amendments (CAAA) enacted in performance of nuclear generating facilities. ACE is sub-1990 relating to acid rain and limitations on emissions ject to a BRC mandated nuclear unit performance star.- at electric generating plants will require modifications dard, l'nder the standard, penalties or rewards are based at certain of ACE's facilities. Compliance with the CAM on the aggregate capacity factor of ACE's five jointly-will cause ACE to incur additional operating and/or owr.ed nuclear units. Any penalties incurred would not capital costs. Presently, ACE's cash construction budget = be permitted to be recovered from customers and would for 1994 through 1996 includes approximately $47 mil-be charged against income. lion related to the cost of compliance. In addition, certain An accounting standard inued but not yet effective for power purchase arrangements will be affected by the ~ the Company concerns benefits provided to inactive and CAAA, the effects of which are not presently determinable, terminated but not yet retired employees. It i3 expected The New Jersey Department of Environmental Protec-that the annual costs calculated under the new standard tion and Energy (NJDEPE) has proposed modifications will not be significantly different from those recorded to certain environmental permits at Salem Station. The -~ under the current method of accounting and that any Salem owners have opposed these modifications that additional liabilities recorded will not be material to the would require the immediate shutdown of both Salem i consolidated financial statements. units, the construction of cooling towers at costs which The Energy Policy Act, enacted in October 19ei2, pro _ are estimated to be substantial, and extended outages vides, among other things, for increased comt son for the design, licensing and construction of such tow between utility and nonutility electric generators and ers. In additmo to the cost of construction, ACE would permits wholesale transmission acc ess. or wheeling, be required to purchase replacement energy, the cost of with certain requirements. Other competitive pressures which could also be substantial, The retrofitting of cool-such as increased customer demands for discounted ing towers at Salem would also result in a permanent rates, potential loss of municipal power sales. excess capacity de-rating of up to 120 MWs, as well as increased generating capacity, together with the emergence of operation and maintenance costs. As more fully Jetailed nonutility energy sources, are expected to increase the in Note 10 of the financial statements. Public Service amount of business risk for electric utilities in the Electric & Gas (PS), the operator, filed a Supplement future. In addition, the extent to w hich New Jersey pub. to its Application which proposed that Salem continue lic utility regulation is modified to be redective of these operation with a once-through cooling system, and pro-new competitive realities will be a key factor affecting vided for plant modifications and environmental enhance-the Company, ments to the Delaware lhver in the vicinity of the Station. Devdopmem of ciectric generaar g facmues ny non. b he M"3, the N!DEPE, sued a Draft Pcrmit,chich utilities has occurred in ACE's serv ce territory. Effects essentially incorporated the provisions made by PS in its of nonutility generation could be cFset to some extent pmposal. Costs of this proposal would not be significant. hy natural growth in the service ter,itory and additiona The NJDEPE indicates it expects to issue a final permit efforts by ACE to reduce the impact of the notential loss in the first quarter of 1994. The outcome of this matter of kilowatt-hour sales and revenues. As a result of eco-cannot be predicted at this time. nomic conditions in the ser, ice territory, ACE estimates Federal and state legislation authorize various govern-that the rate of growth of overall sales of energy will mental authorities to issue orders compelhng responsi-be modest, ble parties to take cleanup action at sites determined to present danger from releases of hazardous substances. The various statutes impose joint and several liability without regard to fault for certain investigative and cleanup costs for all potentially responsible parties. ACE has received notification with respect to certain sites as one of a number of alleged rtsponsible parties for cleanup k IOk { NOIfy

_m., ~ .q y o iJ ,'h -( ' t w

and remedial actlons. The total amount ~of cleanup and re.

'larianon.; medial measures associated with these sites as claimed by - Inflation affects the level of operating expenses and als? - the auth6rities for all defendants is currently estimated i the co' t of new utiliti plant placed in' service. Traditionally,y s i16 be;$178 millioncACE helieves that primary responsi-the ratemaking practices that have applied to ACE haYe '; ' bility for the claims will be borne by other parties and its. involved the use of historical test years and the actual - .-l - share,if any, of the claims would not be significant. ACE - : cost 6f utility plan't. llowever/the ab'ility to recover ine

plans to pursue lth'ese matters' aggressively. '

creased costs th' rough' rates, whether resul' tins from ? . inflation or ottierwis'ei depdids upon th'c fiequency,\\

timins and results 6f ratejasidecisions? "

~ 4 y G e 10 10 .g i ;12 8 ~ + a , 4' yi - cs

m

'}4. ... l '.l i m 2% g. m b t 3E M,3ygg 3 34 p3 l c 2 2 . / .....-- _.,...e. e.,. . w = k n 6 it Ill 91 W 53 O + a I Athnlic Energy m =- _1_= _ = = = _ -m 1

and remedial actions. The total amount of cleanup and re_ annation medial measures associated with these sites as claimed by inflation affects the level of operating expenses and also the authorities for all defendants is currently estimated the cost of new utility plant placed in service. Traditionally, to be $178 million. ACE believes that primary resporisi-the ratemaking practices that have applied to ACE have bility for the claims will be borne by other parties and its involved the use of historical test years and the actual share,if any, of the claims would not be significant. ACE cost of utility plant. Ilowever, the ability to recover in-plans to pursue these matters aggressively, creased costs through rates, whether resulting from inflation or otherwise, depends upon the frequency, timing and results of rate case decisions. d 10 'A t' -n 11% tt fis 5, Is 1,, m 1 411 l34 17 e IG IE Irll 1 141 ,,u - >= e W-14% 4 4 g g JN e.. 4.. 2 " 49 90 et 92 93 99 90 91 92 93 0 b ,, i. y...,, <j,,s ei ,,,,n.,,.. h j,,j,',,. 4e ,t .,

i M} -

s // -'.j F.f. f [d d'g M ', I, 4

h

UMMARY FINANCIAL AND STATISTICAL REVIEW 1993-1983 1993 1992 1991 1990 i Atlantic Energy, Inc. 1 investor Information Operating Revenues (000) S 865,675 $ 816,825 5 808,374 5 740,894 Net income (000) S 95,297 $ 86.210 $ 85.635 $ 68,879 Average Number of Common Shares Ouhtanding (000) 52,888 51,592 49,008 45,590 Earnings per Average Common Share 1.80 1.67 1,75 1.51 Total Assets (Year-end) 1000) $2,487,500 $2,219,338 $2,151,416 $2,006,010 J Long Term Debt and Cumulative Preferred Stock Subject to Mandatory ReJemption (Year end) (000) S 952,101 $ 842,236 $ 807,347 $ 747,877 Capital Lease Obligations (Year-end) (000) S 45,268 $ 49,303 $ 53,093 $ 57,971 Dividends DeclareJ on Common Stock S 1.535 1.515 1.493 1,47 Dividend Payout Ratio 85% 90% 85 % 97% Book Value per Share (Year-end; S 15.62 15.17 14.S4 14.36 Price / Earnings Ratio (Year-end) 12 14 12 11 Times FixeJ Charges Earned \\ l Ipre-tax, Atlantic Electric) 3.54 3.76 3.68 2.94 Common Shareholders (Year-end t 47,832 46,521 43,802 42,295 Employees ( Atlantic Electric) (Year-enJ) 1 835 2.023 2,032 2.055 7 Atlantic City Electric Company (Principal Subsidiary) Facilities for Service Total l'tility Plant (000) S2,402,415 $2,279,107 $2,175,601 $2,027,138 Additions to Utility Plant (000) $ 141,927 $ 134,326 $ 177,29h $ 170.772 Generating Capacity (Kilowatts) (Year-endi f a)(b) 2,307,700 2,160,700 2,090.700 1,959.700 Maximum Utility System Demand (Kilowatts) 1,962,000 1,796,000 1,911,000 1,741,000 Capacity Reserve at Time of Peak (% ofInstalled Generation) 11.2 % 16.9 % 5.2 % I t.,9% Energy Supply (mwh): Net Generation 6,025,861 5.775,098 6,300,891 6,267,559 Purchased and ing changeJ 3 753,433 3,553.247 3.124.024 2.606.067 1 Totai System LotJ 9,779,294 9.328.345 9.424.915 8,873.626 Electric Sales to Ult' mate Customers (mwh1: Residential 3,495,722 3,276,330 3,370,327 3,267,606 Commercial 3,259,541 3.100,133 3.147,318 3,063,069 inJustrial 1,261,069 1,229,211 1,36S.329 1,376,423 All Others 50,080 49.464 49,626 49.769 TotallaHe) O D66,412 7.655.138 7.935.600 7,756.867 g i Ren!:!rn!!c! Rlrrtric Nrrr!re t % -af per C: t:=c e Amount of Electricity Used During the Year (kwhi 8,608 S,131 8.440 8,251 Revenue for a Year's Service S 969.86 $ 903.91 $ 906.66 $ 844,37 Revenue per Kilowatt-hour 11.27c 11.12( 10.74( 10.23c l'ltimate Customer Data ( Average) Residential With Electric lleating 82,385 82,206 81.833 81,479 Residential Without Elec tric Heating _ 323,7_22 320,744 317,486 314.529 Total Residential 406,107 402,950 399,324 396,008 Commercial 52,988 51,996 51,077 50,274 Industrial 971 990 998 1,002 All Others 522 524 524 537 _ Totallitimate Customers (c) 460_,588 456,460 451,923 447.821 Operating Revenues (000) Electric Service: Residential S 393,866 $ 364.232 $ 362,050 $ 334,375 Commercial 315,089 299,866 292,349 271,68S Industrial 100,812 97,475 102,202 96,766 All Ot hers 10,575 10,548 10.136 9.668 Total from Electric Service 820,342 772.121 766,737 712,49 t i Unbilled Revenues-Nel 28 1,203 3,229 (1,055) l Sales for Resale 36,576 35.884 30,404 24,11.7 Other Electric Revenues 8,853 7.723 8,112 8,418 Total Operating Revenues (c) S 865,799 5 816.931 $ 808.482 $ 741,005 ta) Enludes opacity a!!acats d to a larp mdustnal customer. (M Intludes umt purchases anJ sales of caraaty unJu contracts with certarn other ut Wtn s and norutsto m includes sales to an ahibate v,ithm the Adantic Enegy amsohdated gmup. -\\tlantg Enogy 1

1989 1958 1987 19X6 1985 1984 1983 $ 723,216 $ 687,335 $ 635,657 $ 604,716 $ 612,035 $ 582,386 $ 526,681 $ 80.964 5 72,171 $ 73,765 5 54,940 $ 46,150 $ 56,433 $ 59,717 43,268 39,186 36,622 36,532 36,138 35,169 13,845 1.87 1.84 2,01 1,50 1,28 1.60 1.76 $ 1.864,461 $ 1,660.286 $ 1.499,381 $ 1,401.064 $ 1,319,027 $ 1.253,083 $ 1,170,993 $ 725,329 $ 594,461 $ 522,815 5 534,822 $ 521,612 $ 473.462 5 459,366 $ 33,146 5 32,880 $ 37,694 $ 37,603 $ 38,857 5 41,722 $ 39,228 1,425 1.37 $ 1.3575 1,305 $ 1.2775 1.225 1,16 75 % , a% 66 % 87% 99% 76 % 65% 14.27 13.58 12.86 12,18 11.98 11,95 11.60 10 9 8 12 11 8 7 3.19 3.06 3.6S 3.99 3,03 3.62 4.14 43,383 44,473 45,5S6 47.133 48,635 47,446 48,299 2,021 2,092 2,148 2,168 2,099 2.012 1.995 $ 1.846,122 $ 1,712,614 $ 1,602,801 $ 1.503,010 $1.438,643 $1.351,392 $ 1,265,393 $ 147,886 $ 130.281 $ 105.521 $ 109,303 $ 105,213 $ 95.388 $ 83,673 1,879,700 1,807,700 1,660,700 1,660,700 1,605.700 1,594,200 1,594,200 1,700,000 1,636,000 1,609.000 1,459.000 1,432,000 1,298,800 1,346,700 9.6% 9.5% 3.1 % 12.1 % 10,8 % 18.5 % 15.5 % 6,260,942 5,863,119 6,157,938 5,966,600 5.817,254 6,237,724 5,913,196 2,597,623 2,567,871 1,773,837 1,454.491 1,333,174 940,987 1,065,704 8.558.565 8.430,990 7,931,775 7.421.091 7,150,428 7,178.711 6.978,900 3.260,918 3.213,010 3.040,410 2.839.114 2.638,121 2,646,813 2,545,351 2.91',162 2,741.976 2.592.239 ' 401,199 2.298.895 2,150,161 2,019,168 1,38),832 1.339,005 1,323.567 1,222,9s1 1,204,971 1,197,392 1,225,637 53,872 56,289 58,191 58,120 57,685 59.122 60,978 7,617,784 7.350,2X0 _7,014.400 6.521,414 6,199,672 6.053.791 5.851.434 8,382 8.460 8.281 7,982 7,643 7,866 7,715 $ 810.34 838.70 $ 508.14 $ 791.09 $ 799.29 $ 783.47 $ 713.79 10.03t 9.9 ) ( 9.76C 9.914 10.46( 9.96( 9.25e 80,409 78.80a ,5,900 72,Ci0 68,871 65,261 62,272 309,24a 300,974 291,253 283.062 276,305 271.207 264,642 389,654 379,779 367.153 355.702 345,176 336,468 329,914 49,509 48,398 46,775 45.359 44,256 43,615 43,152 1,008 1,014 1,015 1,022 1,020 1,015 1,021 549 552 554 554 551 544 549 440,720 429,743 415.497 402,637 391.006 381,642 374,636 $ 327,413 $ 318.520 $ 296.712 $ 281,393 $ 275,897 $ 263,612 $ 235,488 256,199 240,890 222,129 214.230 216,052 190,435 169,795 94,634 91,661 84,476 80,037 83,628 79,123 72,633 9.901 9,935 10.199 10,230 10,470 10,403 9,960 658,177 661,006 613.516 585,890 586,047 543,575 487,876 7,215 6,716 385 (1,8131 3,076 (l.340) 5.671 18.196 11,476 12.840 13,015 15,656 32.855 26,130 9,765 8.137 8,916 <,a9 4 7,256 7,296 7.001 5 723.353 $ 687.333 $ 635.657 $ 604,716 $ 612,035 5 582,3h6 $ 526.681 Auontic tn.:rgy b

NVESTOR INFORMATION (as of DenmNr 31,1993) lihere shouldIsendinquiries concerning my \\\\ho is the trustee andinterest paying agent for Atlantic I investment in Atlantic Energy or Atlantic Electric? Electric's bonds and debentures? The Company serves as recordkeeping agent, dividend Ph.si unlgage Bond recordkeeping and interest disburs-l disbursing agent and also as Transfer Agent for Common ing are performed by The Bank of New York,101 Barclay l Stock and Atlantic Electric's Preferred Stock. Correspon-Street, New York, New York 10286. Debenture record-dence concerning such matters as the replacement of keeping and interest disbursing are performed by First g dividend checks or stock certificates, address changes, Fidelity Bank, N.A.,765 Broad Street, Newark, transfer of certificates, Dividend Reinvestment and Stock New Jersey 07102. Purchase Plan inquiries or any general information about />oes the Company have a Diridend Reinrestment and Stock the Company should be addressed to: Purchase Plan? p Atlantic Energy, Inc. Yes. The Plan allows shareholders of record and inter- / Investor Records ested investors to automatically invest their cash divi-6801 Black llorse Pike dends and/or optional cash payments in shares of the 7 P.O. Box 1334 Company's Common Stock. Other services available to A Pleasantville, New Jersey 08232 DRP participants include certificate safekeeping and Telephone (609) 645-4506 or (609) 645-4507 automatic investment. Holders of record of Common H hen are dividends paidy Stock or interested investors desiring to enroll in the Plan should contact investor Records at the address The proposed record dates and payable dates are listed, in addition, shareholders whose stock is held as foHows: in a brokerage account may be able to participate in the Plan.These shareholders should contact their ch 1.1994 ril 5.1 94 June 20,1991 July 15,1994 broker or Investor Records for more information. September 19.1994 October 17,1993 U here is the Company's stock listed? Dece mber 19.1994 January 16.199a Common Stock is listed on the New York, Pacific and The following table indicates dividends paid per share Philadelphia Stock Exchanges. The trading symbol of in 1993 and 1992 on Common Stock: the Company's Common Stock is ATE; however, news-1888 "*2 paper listings generally use AtlEnrg or AtlanEngy. First Quarter S.38 $.373 Second Quarter .38 .375 The high and low sale prices of the Common Stock Third Quarter .385 .38 reported in the Wall Street Journal as New York Stock Foagtp ouarter .385 .3s Exchance-Composite Transactions for the nerioJs indi- - ~ - - - - - - un u,, -n annna u na cated were as follows: Dividend checks are mailed to reach shareholders approx- ,,,3 ,g32 imately on the payment date. If a dividend check is not ingh to, niya i.om received within 10 days of the payment date, or if one is First Quarter $25.000 $21.875 $21.000 $? 8.000 p4.625 f2.500 00 8D ecu Qu der 23.au 21.e25 lost or stolen, contact Investor Records. Dividend checks 'l hird Quarter 25.375 22.625 may be automatically deposited into a checking, savings. Fourth Quarter 23.875 20.375 23.500 21J50 money market or credit union account at any financial is additionalinformation about the Company available? mstitution that accepts electronic <hrect deposit. Contact The annual report to the Securities and Exchange investor Records for an authorization form. Commission on Form 10-K and other reports containing Dividends paid on C,ommon Stock m. 1993 and 1992 hnanc. l data are available to shareholders. Spec.fic ia i were ft.lly taxable. Some state and local governments requests should be addressed to: may impose personal property taxes on shares held m Atlantic Electric certain corporations. Shareholders residing in those states should consult their tax advisors with regard to Financi l Services Department 6801 Black llorse Pike personal property tax liability. ~ Pleasantville, New Jersey 0S232 Telephone (609) 645-4655 or (609) 645-4888 FAX (609) 645-4132 b h- ~_______________________________.___________m.______ ___m_________.,_._____m_._______

F F 1 C E Ft S 0 At!aticI:nern inc andht~,iscia (see years of wrrke anivaceer n. lun JERROLD L. JACODS (5 F321 Ms. McMillian has served as Secretary of Atlantic Energy and President anJ Chief Executive Ollicer of Atlantic Energy Atlantic Electric since 19% She was electeJ Vice Pre,ident-D' rector of Atlantic Energy and all subsidiaries Legal anJ Secretary of Atlantic Electric in 199:i 0,e joined Chairman, PresiJent and Chief Executive Officer of, Atlantic Electric in 1985 as Assistant to the irporate Atlantic Electric Secretary. Ms. McMillian is an attorney. Nr. Jacobs was elected President and Chief Executive Ofncer of JOHN M. CARDEN l75/261 Atlantic Encray and Atlantic Electric in 1993. Since 1990, he V ce President-Ocean Region of Atlantic Electric served as President of Atlantic Energy and President and Chief Operating Off cer of Atlantic Electric. Prior to that, he was Mr. Carden was named Jice President-Ocean Region of Atlantic Electric in 1993. Prior to that, he was Vice President-Executive \\ ice President of Atlantic Electrie. Mr. Jacobs jo.med Customer Service and Vice President-Administratice Services Atlantic Electric in 1961 as an engineer. of Atlantic Electric,liejoined Atlantic Electric in 1967 as an MEREDITH 1. H ARL ACHER, JR. ($1/28) engineer. (retired effective 1/3/94) Vice President of Athsntic Energy FRANK F. FRANKOWSKI H3/lo) Director of Atlantic Energy Technology, Atlantic Southern V ce President-Controller and Assistant Treasurer of Properties and ATE Investment Atlantic Electric Senior \\ ice President-Energy burply of Atlantic Electric Certitied Public Accountant Mr. liarlacher has served as Vice President of Atlantic Energy Mr. Frankowski was named Vice President-Controller and since 19q7 and was named %enior \\ ice President -Energy Assistant Treasurer of Atlantic Electric in 1993. lie was Supply or Atlantic Electnc m 1993. I rior to that, he was Senior \\ we President-l:tility Operations and Senior bce viously Controller-Corporate Services. Prior to that, he Pres, dent 4,orporate f lannmg and Services of Atlantic held management positions in accounting and taxes. lie i Electric. lic jomed Atlantic Electnc m 1965 as an engineer. joined Atlantic Electricin 1983 as Manager ofInternal Auditing Services. HENRY K. LEVARI, JR. fl.P22) JAMES J. LEES (19'231 i ec r faI idi Vice President-Marketing of Atlantic Electric Senior Vice President-Marketing & Customer Operations of Mr. Lees was named Vice President. Marketing of Atlantie Atlantic Electric Electric in 1993. Ile was previously " ice President-Marketing Mr. Levari has served as Vice President of Atlantic Energy and Rates and Vice President-Rates of Atlantic Electric. lie since 1991 and was named Senior Vice President-Marketing joined Atlantic Electnc m 1970 as an engineer. & Customer Opt rations of Atlantic Electric in 1993. Prior to ERNEST L. JOLLY (11/131 that, he was Senior Vice President-Corporate Planning and Vice President-External Affairs of Atlantic Electric Services and Vice President-Power lklivery of Atlantic Mr. Jolly was named Vice President-External Affairs of Atlantic Electric. lie joined Atlantic Electric in 1971 as an engineer. Elect ric in 1992. Prior to that, he held station manager posi. J. G. (J ERRY) S ALOMONE (53'l7) lions at Deepwater Generating Station from 1987 to 1992, fie Vice Pr'sident and Treasurer of Atlantic Energy joined Atlantic Electric in 1930 as an engineer. Director of all subsidiaries J. DAVID McCANN (12/21/ Senior Vice President-Finance & Administration of Vice President-Engineering & Construction Services of Atlantic Electric A;bntic glcc;nc Certified Public Accountant Mr. N -Cann was named Vice President-Engineering & Mr. Salomone has served as Vice President of Atlantic Energy Cons action Services of Atlantic Electric in 1993. Pnor to since 1987. lie was named Senior Vice I resident-Finance & that, he was Vice President-Power Ddivery and Vice President. Administration of Atlantic Electric in 1993. Prior to that, he Treasurer and Assistant Secretary of Atlantic Electric, lie was Senior Vice President-Finance & Accounting and joined Atlantic Electric in 1972 a's an engineer. Treasurer. lle has served as Chief Financial and Accounting Officer of Atlantic Electric since 13S L lie joined Atlantic HENRY C. SCHWEMM, JR. (52/2J1 Electric as Assistant Controller in 1976. Vice President-Power Generation & Fuels Management of Atlantic Electric SCOTT D. UNDERER (35/13) Mr. Schwemm was named Vice President-Power Generation & bce President of Atlantic Energy Fuels Management of Atlantic Electric in 1993. Prior to that, President and Director of Atlantic Southern Properties, he served as Vice President-Production of Atlantic Electric Atlantic Generation, Atlantic Energy Technology and A,TE Investment since 1980. lie joined Atlantic Electric in 1969 as an engineer. Mr. Ungerer was elected to the above positions in January LOUIS M. WALTERS (11/151 1994. Prior to that he served as Manager-Production Vice President-Treasurer and Assistant Secretary of Economics, Manager-Joint Generation Projects and most Atlantic Electric recently Manager-flusiness Planning Services. lie joined Treasurer of Atlantic Southern Properties, Atlantic Atlantic Electric in 1980 as an engineer. Generation, Atlantic Energy Technology and ATE lovestment Certined Public Accountant SABRINA D. McMILLIAN (JW) W.W d Vice President-Treasurer and Assistant Secretary of Atlantic Energy Secretary of Atlantic Electric in 1993. Since 1991, he had bce President-Legal and Secretary of Atlantic Electn.c served as General Manager-Treasuiy and Finance of Atlantic Acting Secretary of Atlantic Southern Properties, Electric. Prior to that, he held management positions in treas-Atlantic Generation, Atlantic Energy Technology and AT E Investment ury, taxes and accounting. lie joined Atlantic Electric in 1978 mn xcountant, b

OARD OF DIRECTORS 1!!anW Cww (v nl %hn!. ias of Dmmher31. lWh JOS. MICH AEL GALVIN, JR. JERROLD L. JACOBS Mr. Galvin. a Director since 1978, is president and chief Mr.Jacobs is President and Chief Executive Of6cer of the Com-executive of6cer of the South Jersey Health Corporation-pany and of Atlantic City Electric Company. lie is a Director of The Memorial llospital of Salem County. lie is a director of all of the Company's subsidiat ies and has been with the Com-i l Woodstown National Bank and the Center for llcalth Affairs. pany for 32 years. He is a graduate of the Newark College of l lie is a graduate of the University of Scranton and holds a Master Engineering (New Jersey Institute of Technologyh Age: 54. i of Busmess Administration from Xavier University. Age: 48. Professional Experience: utility operations. Professional Experience: personnel, health care management. Committee Membership: Ex-of6cio member of all committees h Committee Chairman: Personnel Committee Membership: except Audit and Personneh Audit: Energy, Operations & Research; Pension & Insurance. KATHLEEN MacDONNELL GERALD A. HALE Ms. MacDonnell was elected as a Director in 1993. She is vice Mr. Hale, a Director since 1983,is president of flate Resources, president of Campbell Soup Company and president of its Inc., a health care, industrial / natural resource company. lie is Frozen Poods Group. She is a member of the board of trustees a director of New Jersey Manufacturers insurance Company, of the West Jersey llospital System, a member of the board of New Jersey Business and Industry Association and Hoke. Inc. directors of the Camden County Girl Scouts and a trustee of lie is a graduate of Western Michigan University. Age: 66. the Campbell Foundation. She is a graduate of the l'niversity Professional Experience: industrial minerals. chemicals and of Massachusetts and holds a Master of laternational Manage- [k fabricated 0.E.M. products. ment from the American Graduate School ofInternational Committee Chairman: Corporate Development. Committee Management. Age: 45. Professional Experience; consumer Membership: Audit; Energy, Operations & Research: Personnt.l. products, marketing and international management. Committee Membership: Audit; Energy, Operations & M ATTHEW HOLDEN, JR. Rese n' n nce & Inves r Reladons; Pension & Insurance. Mr. Holden, a Director since 1981,is the Henry L. and Grace M. Doherty Professor of Government and Foreign Affairs RICHARD B. McGLYNN at the University of Virginia. He is a former commissioner of Mr. McGlynn, a partner in the law firm of LeBoeuf, Lamb, j-the Federal Energy Regulatory Commission anJ the Wisconsin Leiby & MacRae. has been a Director since 1986. lie is a former L Public Service Commission. Ile holds a Doctorate of Political commissioner of the New Jersey Board of Public Utilities and Science from Northwestern University. Age: 62. Professional a former judge in Essex County, New Jersey. He is a graduate Experience: regulatory affairs, ene rgy consultation, arbitration. of Rutgers Law School and Princeton University. Age: 55. Committee Chairman: Audit. Committee Membership: Professional Experience: law, utility regulation. Corporate Development: Pension & Insurance: Personnel Committee Chairman: Pension & Insurance. Committee Membership: Corporate Development; Enecy, Operations CYRUS H. HOLLEY & Resead n nee & Inner Mahnt Mr. Holley, a Director since 1990, is president of Management Consulting Services. lie was formerly chief operating officer, BERNARD J. MORG AN executive vice president and a director of Engelhard Corpora-Mr. Morgan, a banking industry executive, was elected as a tion. He is a graduate of Texas A & M University. Age: 57. Profes-Director in 1988. lie is a director of St. Joseph's University and sional Experience: industrial minerals, chemicals and precious a member of the Business Advisory Board of the Girl Scouts of meuh Greater Philadelphia. lie holds a Master of Business Adminis-tration from the u harten Schoo! of the Umversity of !'enn-c._ _ c u,.._. e - n _ m

c. o _, ~ '

Committee Membership: Corporate Development; Finance sylvania. Age: 57 Professional Experience: banking, tinance. & Inve3 tor Relations; Personnel. Committee Chairman: Finance & Investor Relations. Committee Membership: Corporate Development; Pension E. DOUGLAS HUGGAP9 " *"" C # ; # *""# Mr. Iluggard. a Director since 19% is Chairman of the Board of the Company. lie served as Chairman and Chief Executive HAROLD J. RAVECH8 Officer of the Company and Atlantic City Electric Company Dr. Raveche, who became a Director in 1990, is president of the from 1989 until 1993, when he retired after completing 38 years Stevens Institute of Technology. lie was formerly the dean of of service. Prior to that, he was Director PresiJent and Chief science of the Rennsselaer Polytechnic institute. lie is a direc-Executive Officer of the Company and Atlantic City Ekctric tor of National Westminster Bancorp,Inc and National West-Company. He holds a Master of Mechanical Engineering from minster Bank NJ, a commissioner of the New Jersey Commission the University of Delaware. Age: 60. Professional Experience: on Science and Technology and a mernber of the Newark Inter-utility operations. national Airport Advisory Committee. lie holds a Doctorate of Committee Membership: Ex-officio member of all committees Physical Chemistry from the University of California. Age: 50. except AuJit and Personnel Professional Experience: higher education, science and tech-nology policy. Committee Membership: AuJit; Corporate Developmtot; Energy, Operations & Research: Finance & Investor Re'ations. w

.. _ = _.., _ _ _ _ w s. OARD OF99950 TORS g 6 \\ s o e 9 a eq?l9 u mm enw (:.;r f-+-- y' Q Q

y % :M i

g .I'[ %;2 3 57 1 1j ~ i ~

p

[. L

Jes.Itichaelcalvia,Jr.

Gerald A. Hale Matthew Helden, Jr. Cyrus H. Helley E. Douglas Huggard = ~ Jerroldt Jacobs Kathleen MacDonnell Richard B. McClynn Bernard J. Morgan Harold J. Ravechd s 4 = - - - - ~ _.. '. _. _.. _ -. _ _. - -. __a e o W b S A c. e ar T b ^ t p g R w ____--------___--_----____--_--.--_-..-n

v...

y ' n un ~. e <-.= ~ -.c w I 'I' ' ' ^ l' h \\ f . M. ,.p, r' V D-r. .,s s.g -*u v;& T}St r .e' 3 ( ' ; x. 4 ( '(WE,' 1 g J > V' 13 5 l i '\\ tl s \\

s.

\\ \\, ; \\ \\ \\

* \\

i y,- ',[] ) L 9 6 p.. s ns %4 s,f 1p gj}i Q s.._, y t t yqq.

et
p.

3 .f... l.[el( ;3, w Y- [. / j - ' f:..' ~ Vf k'. r 4 ~; s

D f

ytn c a

', e i.l, h 'h.

- y }5 .1, p$ -f g >_ r u)w - -- m 6, t' /--

"j <>.
w y,

r, -y,.,., .x-8 u.. a - i. s f 12 Q c q_ m, > t - s o , y; -,m ",4 e - t 'i. T r,

v. g y',1

,a s i ci a' v' ,,.'.' d. c., s o, a1, i, a 4 ..,p-. , arc

e. <,

s i /., f' f }p[g- 'y t ji. ' p' n, _.v 'I -^. ? s ,w

i L '
)')

.r.'.". m' ' y).',.'.' .. ll A g b } '-..,,g..y L pg c.,. N'.',2 g 5 -fbi .n [ b n'.'\\.wl a', 4 y , / tgg g 4,. y., J -g y.V[ [ b { 't', 4.y', s P

v y 'y a

< x 6 < 'D N #).-,

u y 's 4 8 .( . y$ S; . j9 h* r M" st.v

e. b: -

t t v y p s j 4.4 s ~ n, o.. y; -e h

N.5. i'-Y-r

+.- -,9,.f " [ ' re 4; - o n '[' Y $." Y i ,j g. f li> ..p -.Q ' ' 'y h,f ,"O' / g n 'y', 'l l ', 'h i ~3. '),_ 4 Y, g f 3,. _.4 _ 9 q. 4 g 4. r% by 4 f ,) f.., q ^ y e. g I T L _m _p.. .9, 4 j..,/ T [h[i. \\,O, 6 ] MN 4 j g i,. 1+ 4, i s o + p p- .u 4.93 ., -. . p~., g g..p'jr4 > g,, a

?'t,{

1 1J w r,.+(; 4' p.;.. ; cp LL ',' ; ny$w 9 . r', . y . s A,,,

%y u

v s. QQ ' d 'd i ) y _Y? CG3 99 y },, d_ sl f y a

1 e c

my t

it/4 e e 4

s 4 m, yl'Q'e ' :.%m, ': {3. - ms 4 .Q . n ,:b; r,, t a, is. s r-

. ; h

.,4 F ~ ,,7R.s. , s.i s " ' r '3 ;g yn)y-sy,'s,G,f), A D* " 7, ;r;p,' )y ': c, ,p J $p ' - ~, z 4 ?,. i t t'. 3 ht e p. Q ' c_ ~ > x g6 n yg; ~ ' Ap.;%

v. p

<~21 .as.s e - a f,0 l. l 1 w,.'J:'.,"(' f L- ,.c

f., M,, &<....

,J,. : ,s., +,e n,,n . + ,w ,,, 4 ,.3, p,, ~3 y a.n

m. -

_ s, -. w. x r um 4 x <Og Up i.i g y%r + s g, i.d,5::, / {;,', ' / g. xy y, t l f -,. d ,jk '?. )'"" v. m; Le -: .,,, t j.g g. 7 9>, c6 8 O!1e B 1 a"c:kO H o r. s e !P I k e', _ P,1 e_.a s a n tlv I I 1:e1 J'N e3.wMJ e r:s elydo 8 2j3'2l %y * .n; p. ~.,.,.:'. - un. ~., M "*- y}S.. : + 's 4

.,0 /

tYf 4 ,5 c% ' ^ 5 .,.s.!.. m v - 7;. t w < ~ st i ') ',j[ " " ' ' ' ','b,,' .,s [ 3,, 't ,. ^ v - t-~ F ",%,'*,..,,.hg, . f. > -(s-.i

f. %

g,_ \\ yl .h' L g I )- q y nyy '. ^,:,t 5. V, $r ,f. 4 N > m'b{. N ', ~ l[T y *y. : p, ',7; e' 4 , _f; _y 1.a,,,, y y_ /.. g

c: . h -

j w, ,s 2 i - = ?,

3 -

s 9*g q v,. ~o-3 n f .,. +,- r 0, / 'J-, j +. f ', 1 ' ?p 'i bf [* f 1 ,,.,..J:g,gyQ / , h.g.'* .n. <rv}.,.. '.%y j s. x 'h &, b u f't'. 4f '?.; I) E Y, O n& s, . ~.;~ r s' ,i v ib-o E-w

m..

. rr u r pv 5

^..

g ,,9_ M? ?.lJf h 11-X#'. t f .y M ..s-- z..N,,4 6 4

E i.: + 1 '

L 4%, 4' + t ! T .,s q t (f-4 f'. 7 7 / ,s..@ e ,4' ? b ,a 3 i .> 0,s y q f. J. tf4 4 i s 4 M'% 4 / 4 ~ ) 4.- s 4 4 h%b--- L ~ ?'4 A 1 4 6-e 4 g I [j. i i-75e ?? A y .f 3 ,. 9 + ,'f 3.,;, +, y; 5 Q_ s iM )gg; r a.,y. yn \\ +

en

- nr :' >n a, _-, [, ' k 9

0 J

i > p't s y g?, + i ? ~ us ? ' M \\ ~ l?. c.y,..-_ ,.n'. -\\ '.,{- f4 fG .f.a u 'Y ) .'n) f.,.O } ^ e t u. %

p' e

rr t 4 i -) 5* Y q, 4 7 - W; k, o' > 1_ g ;, 3.L. ,7 + q / I a r. '[- .t3.t,. j7. %.e-i )

.e,.

t u } p 7 4 k s 4'. ' _, : -

c. T

,f..A r

e. s f

4 .,{ d, ~. + t ' a s ri-e y I Y -- ,?' T (V( .}.} } } ~','s k, [ ..~ 4 p 3 c m' [ m. ,:;s {: i ?L. [ I, / 3 2 0 1 I \\ .+ s 4 ..Q1.'. I 3 .~ 1 l ho@k, I kin &, I w NN_____- M- _ -. - _ _. ~ - - -. -. _ -. _ - - - _ _ - - -

' l :* _ ' l. } [,., l, 'c '., l.,.': ' ' '; .',:'- i ', 5 I [ [y,' '. ;,.;s J, L/ ' [ ' ', ':. :'., ~ *g'l' ~.. ;. [.,:.e..f ',' '.'.*..,. _.f: - } '.\\ ?, -',,.s..'*(,,_' '[ ' l;_t . l. ',i. *, v. .Q *.;. '.,,'t *,Q '. [* ; ; s,._ '\\,.', ' ; Y'_, ,' 1:.,.,; '. ,[ , ", ; ;T i ..- '&,',,',g,p*'.,.,,n,',.Y'.,-- e.,_ :~...:; b f,y;. ~.[,: ;w*f. .v'..Y}9 .r.- ,__.*(.,- -.g.', 4.4

-.y...y

.. p '.o.\\ 1.'_.;,,,_;,,g.O-..'..- S :' +:.[ ;. l.,: y .t , e's

s

*. ??, ~: '. h..f.,.-,, ';,,.,., '. -

L ":.ld;fN:'.b';':.\\,Y'% ',.lj. :,g ;. y ::Q' ' 3 : l. ' '..< * ?. ' F p;, 1.. ;f '):. *j v.. q,.'.. .;r ,.; y,... ',.,..

C t: : e ? ; _,.,.,
, x li._,q

[ " - 's,,y; { ')( ', ;: - >. s. 'l.:,,.i,' \\. ?;Ql. :, '.:,l::,j ;'.v.. ' v S' 'f i.;,1. 4..G. l.::.a :.?q-[; ; _ ~., s _ .s,,; ,C:n- ..;l c: h, L ... *y . l. Lb. ?

. %; V L ';: ', ',

. ? v.a;; 4...y..-:.,,..., - ,..' y; . '.).

$;.,',., _ a: ; _,...

I ..':.... N'"... 3,;. .y..;;s ;..c..' .o , l ,...._,....,;._s.,* o _;. ; y,, $,.. s.n,,.w.,,,-..- .....,h..!.,..,:~.: n . ;,,.y;. ;. ...*(.._,. ,s,.... s .+

;..,,a-*

r e,.. i.,,; .r Q,!.K,; ..e. .. - '. n'. t,, ' 'a. 4 ....j. %,; l ;. 3 '

a.

..'u. c .._,z.1. ', :i s. "-. ' - -l -^-... '.,* v.. ; '

.V ':..

. /,. a:- lh. .F.. : l: ,. _. *...?-. n. ;,.. u;.c3... ? ~ : _e ;t.. ...y;. '( ,',.'.n, y. '.. '..:.. s *. y <_y- 'l .',c^ - b ;. y 3.In; ~

f.... ' _ -

l . i;..'.. t...:. ['.,,.?. 5 i.i.e }' j_ b...l:; g _.- : -.. .kr 'e y

f,. ;.,.; ; ~s; ;{_% l. : j 'l.

';'l.l', %: 7 .c. ...:. ;y...,.. ;.-....

i. ;..z. * -

1.y z, _... t.,, L ' }'. ',; , ' if., } \\' ;, ' ' * ' *,:- l }.. ?ll.: {l, '..-. .- l.;..{ ),' , ' ' ; ".3.' Y ', ' l'. T. C. d,

_ n., y;.. -l,.L '.

_)...i ;; :'.;.;, Q: ' '., %........',.: ....,,.y;,' M. y *,7 ' s.'.,.': y V.,:., ;:.i,..!'.. \\ ';'..-..,.. < f u, v ;. ;n,,,.Y '. y ' ' ,:: f. f..., ',. _,. _..l V, i: s ..W"...y'!..- c. + -. a.-., ,w:s;.. '.. q,_~;.,',,, % l. : .,;). 3 '. ',. h., '.M * # : : v; - 9_.,.,, :. c ,,.o....,. . ;,, _ : c,,.:,_ r...,_..:...m.p

:n

.c, q 4.. .9, y - p, g A.;...:'..', .m- ^..,: a ... r,, '. 1,3,..'.'....:;- 1. s, y ?_,. :, '.y

... o. y.; A:

.! s, w;,. ..1'l .,..,,_.. _ q.; ,o.c.,....,::..- c. .P... -.. - , y -.:...>" y -

.... '; o -

'? . v '. :_ - y; . '. '. *.. M../.'. N. ', :,.,.. ,.J. (, ,, s ' ;

t +:

..-..'..i'.,.., ?...,. '.; ..._.......j.*5::..,,

s ' 9,...-

b z ,. '., ', i. ' i '. 9 ;* '.. ' *'.-.1,...,.., " - ....,.., '..,:r..,.. .t.~ -.... _,. -,e e.;. :.. ,..,,.q,_.....,...;s.

.i*.>-

.,,.... :..c.

a o'..,s 3 %,.>,._,,..,,..t s.4.. c v t >. ;.e....., ; c

^.., ;.>_-

..., ; f s.y..... .'..,.7,<. y.

o..:,, 9.. :. c
q,,..,

.s r s.

,,;, l;,......

3 a _.,,c,1jf ..g . o.. ),,.....;3,. p _,.-.. - : ,, 4 ...;,...>. r.,..c.:.,. 'l,*-' l1 l*.-,_ r ..jp . !...,q..,.., .. -,, -it r,.',1.'...v..

./'.-

..3 y. .ti ...3...:, . :; 7 . q Q'., f- -l' l[. ?,'_.,.'_e* }' l - l.. ' '. ' '. s;* *:.,-.. ',.,;, b . q' s, ; ?;, * * : '.',,_'Y..,'.,;*.' c s' r. ..,.....j c.. .f \\E,.. ,s ., 'q j 1:' . ; ' g.,. e:' s 6... r. ,,h :;y.,'._ ..4 (

ll,;j..'.n Y v*..,

'. :.L r, ;_ 'l...[. -, .'>._s ,...., -. ' [ '.. ;).,. : ;, j l

'. _. ~,?.

v-. .y.. - -.;.~ z..c _. # '.,.s ,,.,. a. ..,s.,. ...:'; 'g,3, ,o v.- ,.* Ws. 7,,,. .. ~ . ;.. r. .. _ ',,.._.. > - e. t .. '.. -.s k...'.,,....~w'., ., '. di. e f,'.,..._n.L.._.f :: '..,j; ;. y.*, -*y. :3. ~ _, g. ; '.\\,:. t 'h. c,T:7- ',".',.;

s '. :.. s.y.u.

'. l. *I.'c.'.<'..- e. .Q.,,,...s, y ;;. i. :n ; ;f%,..;.7..,. 6 '.. W - x g..,,, - a :q::;?,s, .7,.'. m i: ,i y .u P;.: n;.".s.,;. y' ..:.. v..,- _3., ..s ..y ;: d; 1

3. ;...

...l:,.. - u..:s ".. - 4 *..: i ~9,; ' J.. e. v; : s c" :,., J r:.'., :,- .? .?. .;'~ ~.'r, U'c;:' .y . :*. 1 n. .,.. T_.,,.,,. _..~'. .,oc.. _ ; ; ; q, p ..3 4. .?

,. p(.g r.q

_ '..;.,: C g.: ; ,.:. f.','f.p.- ,'; y ';.,; _ _;,- ., w,. . p. ,,91.;;.,% T. ,.'.-..,': ' 'e :.! "i. , M y. ...:? 1 e c. ,. ~ y ..t .a t y/q

. m:4

~f,.,.. . ; -.a ..^ .i f. pf

.., p

.?. '.v ,.g s e s >- ( '.}' y,l 'h '. ' - ' h'. '. .~ h,,., h. *... ' ',[ . '.; u, [ [ ' ' .,a,. .e ,.,....... " "j. 3,. d..f.,., ;.. l s -.., ,A l' -.v...,..,, t gj s :. c. r... .(.. :. n;,. +s . 5 ...,g. .-m e,..',.:.' => 9 el ...s...~- .,q,.....:._,:,:,. -.... - 4::w.. .. _ j: . i; ...- - ' -;i .,.-.7.'..',:

.,l s

.s w ,s,,<;. r.a...

3 -i y,, :

c. '\\.,, :.. ;-- . n. n. .L ;'. l, :, 4, q. ',. ...K,'(*,- .. ;e v y;... : ; C. y:.,. c x,. - s. s. ... \\ v ? _,..;-~-...... .s. > ; e

,.)._.,*'.

,, 1 y,:

: -Q. ;

r

- n; -. _.* \\ 's

z. _

i :,; t..- . p : 3. ;.- l.;. , ;. ;4.,

v. c ",,. i, ; j ;_, j:._3,

u4, ;,i,, . ;;...f., g ;,.,i -,.,. j ; - '.'.,;., ~, _ f, e,g ,.* 4.s .,. f, : i,,.- -,..p,.y e. W, .1 :'-.. ,...1 a-A.i.8m o p% ".f,,. ca '" ~- ,p' r- ,+ n' ,,......- a_._a .....a l- '....,. ir 3 ,.. ~ et- ,a+ M .' ','. ;I..,',i '.: *... q :':'(;4, .;I,. ' \\. ,.3 l a. \\ _,.,'jt"i._ ; s .,t'.'. .b* -' ',. '....l ...t s h '. K.. *:,,..=. ;- [ '.^ '-.,-'...;, ' '..,f'..,:_ "...,..,,,..;j..,.,_.).,"',,';,;. J,.,6. 3, y. g' _ ' '. l. ; ;r *...- 1 .?. ".y '7,l,'l.,. y, .r'.;.,' ~. - -r

l

,'.....,,.,'l-

L*

,. ';. :.,,,... - '..:.':,'.'. * ;.I \\ '.1 +. ',... - -.,: [....- J. '... ) [ : r. s . ; l ^ 'l-a ->..~,._d.'s.'

T'.*'.'=

's.$. , Q I,:* ' s* '.s,l'.;)'..',i..':.'t'r.-'..'L. ~

'.~.'*...... '., ':

p ..; v' ' =...:;......-.;, r ', g..

:.,, ;;,." */ll:,.' *. ' ' '.,

.'.,',',','.4

-,i f f"*'.'s c [ '..''*.'": t a', ...:.9 'l.. ?, R.'i; ? c ' '., '.* ".,.,, 4, -.U.).:. 's-t .( ' [, ,*e.OE _.i,;*. ....'*;,'.d*m' g..:..q. v :: -... ', ;:,'.....x:.._ w.', q:? -..c - l... : : -,.,..... + .~

V :c,. .

'. :,.L,. '..s.. : 9 ). _., ':.J ...y s.:... ~ - .n. '. - '.'.:,,

l' g :,, :.. s. '*. '. 7,

-n e-' .c... ~ * '-

f..' * &. ', ' '. -

,.k.;'.',...".^... ..;.',:'1.. V m t'. x..A ./,. - '.. ,. ;., -[ .r.. l, f'[.,. N;_,'.,,,) . C i- [,~',, .l' }. ' ; -.,. '.'I h. ^ I. v :. l ^ ..;. g ~ q:...:, i .U'.,n,. ...., -'j...:.,-... s_. ..,'.L., r.- c..,.'i..i.,.- f.p.Q :v(t y<.'. ;..' -' .. !.r.z a g" .p,,,-.. l.. ?

. :g.....

q... '..,.p..s..,,.3

. :t e

y,. r N .y.h.'.. .1 '. ',:l ' )., ',., l;' _ '.+L.[,,:[:", .,., _... h 7,_';l_; q' e. f' 7 _. ;..

f. ',,., ;, :,,,.

+.- * -.7._ '.:[. J..,. ';_ l.3_ '. 7 ;;.:_ ' _ l ' j -' - : ; :; _: ' :.. l} ; ' ',l,., _;,.-.~ ; ...l;' q. ';.., . i [ : j ') .7,,.'.-;,.'.<s,..'

i_ '

,,o ? _., 3. +- ', :' ,,. - Q,; _ _,;.,

..b',...

.w., ,s. :.;.:,y.- .L E:l..::,, '..* Q. ;.\\; )...'.:..V c ,,1,...s 7.., g.a,..>

'..: j '... ;.. 7...". y.- ]3.:

..o ....,_....',L',,:.s..-.. '., '. .......?.'*['.'. .n.; "

. ;-{-

,V. l.;.1.: ' : >: :..... y ;.. -,., :..9:. >,, : - .,, m..i;, ,'y_- ' r '... l.... **.;) ' .. '.

r.,.. :: =

._,. /..' ;., :...,.,,.. :.,... 's:...- s.'. :~ ; e c ... _a 4,

o

. ev. q ..;..,.-.. ;-.,...,. -v.3, \\,. 9 y:*: *~, u '. ....y ..~,...,,,....q.;3.:._ D, ...-1 z.

)...

.......,y...:y.'.", w......,::.., y v. 4 . e. : ..<r..i:.,,.,;; %., 3. *:.. ;..... ',. '. ;... e. 3,. ;.c,,.. ' '.,. '...,,,. _ :;. _c.v. .~ oa.q

.y'_,.,...

.n. ..v. ..:.,. :...... <,. -.., : y. ?.; ;',...

~.: ,...q.

-...Q.. y :

.; 3

. :...;..:,. :-i;

. ~.:. :......

s.a. ".f..:; ;_ y; :. ;.'.l... y.. : .,.t ..,c...:s n. ~;,

.,: ~..
i,: ...... k...,

'y -..r..:. iv 8. n. ui

e.'f^...

. %. " :' 4 ',.i-.'-l'..'i'_-' .\\......i _ ~. - s. .a....

...e. :....... ;, ;,:

. c,., :. e o .c' '

r. ;. :.

n...; ;. :,,. r c.,

. ~.

.- e ::-'%: .:)* ;'.. ' *1;.-..?. f... ' l.* r... - ;'. :. 2..'.,*.v,t .....;,,'..',...=./.- .'.} u s. c'.:.. : .? .L..; . u ;'... >. '. ,.,&.,.,c, e. C.'... :a. ? J'

.,.,. P.i i '.,

-L

3., : -l

-i.. [.l. ;.;-'..l.',.,,. '.,_.,,'..,

g'@.".'. - j'

i

', ' ;), 'e.': ,;,. _a.' : ,. ? 1 .,..r ' i.' ' _

?.

.:? :. 'r e '. . ?.i,,:~ .O-' ( : ; ~'b '" ',t 'ig ;.'.: ,...n, .. y..' -. l; * ^. - 4., ' _ a. V..ls;,. ' ..,.'.':.;.....; _ J.._. - ' < \\ L,l,',',,*~ .o

~

.,' ;.'+,..'v.,; 4... :. :. .1 .;... n. y ;. q .,.~.,;;..Y.., . P .....- :., '-.Q.,2. e: g[;;.;;. jQgy;g .s. ,r .n. L..e._,.}.... n ? N __ 'Y. -lY;, ;'"'h ' Q.".. ^~'," ' _ ".K. : <.) f '.D,Q.?_Y,f.'

3 ',.,' _,_ y.y,$ 'i. :. ".;.l.'

l I' lb k?' ;.j._, y;. ; '

l;

.;;'J...',.:.,.i. .'.,[ - ',." h.i;l, .?'l I:::i ' ' '..~i?. * $' (:*:,..;.,,.;. w.,_pr;.,;..?l.S,,. :- y .: ; ;,, s,.;; ll-l., S-'1WVt'\\'A . _ $__5.:, w.. E. t .u N mamaN._ - % s, .,,:,, G ':C :. * ; -

'. s;.... s.{ j ;: .

q. ' _ ', ; p' ml- ,. z :, b.. y,,.s.. * ,. ;. ', ~.,y. ;[ *~ [. Q ; *^* s. ',:..,'_ ;.,,l _ :. A .. ' v :, _, L. ;'.. k; i. '.' '.l ;'.:'.,, ',,:...;., 3, *y,*..,.: :, - ".;*'.,, _e '.a' ,, ? 4.,; v

g. ;. :.s.r, m'.

3:_ _._ 'd b.,,.i : :.. <_,.q, h - .,.,.,'._,,$',._.._.A.._,I,,,::. *,,.7,'. 'y' s.^., _^ f.: : _J. j ';;.'c._'_ '.' ) ;,,: '- :;.-..; -.g., _. ,.; s,.;< .,,. y, : 4, :,.> (. '7'.,._. ..., ) :.

c. ;,...

- _ '.. _,..,:... l. .( .._;....;:,_,, ; ;, $.. (. & , +

e..,. <...'.., ; _.,,,'.e-.;.';._,-

a,.

.,:.. '.: s, ' 7 -. :c. '.%'.'.' '.,?' s y'.' 1..;, ;'.' : I ;,.

s.

..; Q :,,.... s{..,.

_J'.V~_;,,".,',,*_:.,W,ia ' as_;,., .l,, t '. v . J'..,', c- '? + w. . *., r ','. s

. :_'.. v' ;, ' '.* l

.? . '., p. \\, ;.;. y *? 4..* ".... (, : ~ r,

V,

.. '.i r '? '.., ...,.:,.','l.,,',m. + y,.h,.d ;. r-.,,3 ;-.v_'.., a,. _4.~:. s '.,. -. ;.,, : r, 7 4 a ';,..,:...~- .,.:.f,...

(,'-V,'..-

a-.. a_ ,.'.:,; *:,) , ' ' ',,-.,, '..L:'.,.:,' ....,....;4,..,,. g ,, f. G. i. O 'I (,*j ~,.. ?., l- ,t,.,. .q,.

,, 3

. -;l .. 4, ~ ', _., - s s. -.s. 'a. 3 ,u. n - ( s

.'...,l.

' _ '.. : :?.,..'... : ' n..

.: A,. l '.-. ;

N 'l. p ; : ', ', ':.;.% I D * :

f. f;-'...'.::di 4..U G:.

t -(rK <. %;f ' ;. ,,*(',".g, > ( .r ..,..sa's. , ':..fn-:..',.,,.'.1 ,+....,,,j .. > + ~

- C;

~..,s.1',, e, s , r g,. r. .s N f.W.' :T.::qj<,ff;i.[ A.'. ll l,'.'.:W,k,O '.'c. TW ?, 'n ' 'U '.N..? {. T..,. -.

. u ; a

.s.,.w J. k;,', g....,: ,.,l ',l'N. l ': ; h ~. f %.k ;.. ; f' 'f..' 9.. \\. ,, ;. s. 3 ". ' h 5 '.

r. '.,'.." -4..'f.,,"

- ;e '. 2,h.eN... l Ill ',, ',f,. ;.:.;lQ [ L - ' '*l +,: ;.. , + 'e,,g f, J.,'.Jg,. : - l ' ' ' >. - : ,', b' l '.., f.- ;4 ."/'.q".l.'l'.:_.,....:s...*. o. u. , dy '+ * ~;..'? ;,,. :. _ ;, .. ' ?l, *. ' i :?, g y., .],,.

g: , ' s Y. ', ;;

.; s

L: >',,.. *., ',,

i "a. 'f- ~;"-, '. 6... q_ '. :. ;_ h.,'.v p. e s .,A

?,

_ ' "Q-

f.,,f.,y '..:'Q'.:. b '.pi,..t

.s, N(

n.j;._*

,;, 1 *,; ' j: L. ' :. &'; ; " '.'. _ }./.. '. ' 2 - e....<,;'-., y *., i

..<:,';, ;;.- ' ',.. ---- }^; I

.,..i; "f. ,.oi.;*..,'..g

'. ' \\'-'.

.., 0. ;.Y; 'w,,... ', ', i...-

. e, '.l, ;.

. l'\\ [ ,.s, ;,,'.',.'.4..,-*, '_uj_ - no 3.: p.' x,y p: '.,'.,'. : q q ;. : .i,,,..:,.,3.'f:._,...,..;._..;..,...-.iQ',a'u..'.,",;',';p;',,*~..t.f.y. '; f.;..... t ^.'.,x . N .N:..,.,,.')_..','. t.,_..,,ag,-...,....,...:q

j *

, +, .N .,*f W:;;.s., ?' t'l t L l..e,.. ;,. (< i .'!^ . r.. ';,'j. : : 0j '_. ;3 h ': .. _._.,'.7,.. :, m ;- ;.-...: s:,.?.);,K:;. 1,- s _;'.x ':.* .,y,s..

h..y

.,. ' '.,; ; % ;.. y; '.;..g's.,(.,,,,...,

- q. ; '. :-
. ~.: . N

,v ._s. m.. v..;..,,,.;; t;.

.,1 7

.-30

r. z...,...:.. c;,

. & g'ai_ L: i.'\\,, .,y a...,.. - '3 ,,r.:.... s .,.,.'y's... if n , '. '...,s', ,'.%.,n....,_,,,;.;- v <'...:^-lir+;.'..__y.--.. f. [,.- _ t, ;, 4:, :2 9.R,., ,1.(r< ',.: t, -., .....y.,

s.

.\\

, ' ' s.

'. ";. :.,.;,,.: ~;i ;a -,y'._,' '.: ; q s. ,...a. ~. ;.. '...,:,- } :,. m: ..s.~.,- ll ^

V s.'

s

.,tY ', - ,-_;,-,,_,- _,.y.,.. i '; ?.: 4...., ; m. o_ .f s f, ,3,. 6 :,;..: _ .y e f'_Q,,r' s 6. } {. ', ',...',..r,..u;,':..'.'.o,.,.,~'.~.S; '. ?; *:. 4' ..g ,-.,Q,'..'...p.l",*.,. s x '.,.s .h.'._ ._ ;.s. '. v,. - ; ;.y t_ s:. ;' .'r .,. -.eb.,'..;.._- y.'..,,.. ,.s e,L .,. -w?- s..,

r,.;' ; ;, '; ?.;j,..~..,..',. :, __

.s t: - >'-l_'....

.. lJ

.:b -.l-v '".,'.yy.;.,.. W,., :..,-.. -:,j,-.. a: .-9 !..' : ' ),;h; ':: y. . a .. 2.; .. f;1.:.

\\, : :- '

, \\ " '- -; c _;*.'!,,i. '., y' ;.;p'".,.._,,_..-lC., -s .,... v' 4 .y :- n .,4.,,.',y i: y ;;'** 1 .'.'...? ^ 'l,. , \\ :. ':n.:.,,. L q :,,_. _.. ; 7. .. ;_ o m'? .. h ;.,. * -,,.,........s.._..* _y...,~_.:..

_, ' j,,,;,,..,

, r..',. ' ) ;J :;.. ',,_,,.. ,4

j

,, 3,:..

,.. ;_ ' ?

..; 7 ) .. i ' _... ;. i, -v., +. -.. k..,;. '.. 9 ,i.,...".,,.- .. q t,3... * ;g,. g... w '. :*,,;>.: e.,__.,ey- ;y .. ;.....r.'... .... -.,y..:.=.._ -,...s- ,.,., <...I. y -a ,(, f;,_..,,,e5 ., :,.....a.. g,. ;., s.; J. i ;.. ,.,. y*.,,- . o r,, +. .....4,o .g ,e .y- .,..... ~,.., ;-. -r: c, ,. :. l q,,,., .a .,. -, e .. ;e... .....,....;f p f',.$.,.,,,,.,,,.,....,,.... - ,, s..... ...:.,,,,., /,,..,.. - _.;y..;- ...y,<.- ,'.?'.'. l 1 .~ ,. : u:,,..;-,,.... -..:..,.4...,-..... e.z; ..,'s,.....

-...,.Q.;

g ;;_ q _ -.-.,,

.(

?.*_.~'.'.....-.~,y

.s .,;.._t....: v

('., ;. _,

..s.. ..,,.A ~ ' '. ;..'.'., r 1 :_*.. ;. [- 1* . '. i.,'.'C ',. ' %.,. s:J e,. '.. - '.3..'.f.',...'. '_ ,; 7 +f '. 9 -..^~ ..r.#. '...,.././,- .,, -.. ~. '. - .s p '. f.?..' : ',,-l.-

.',.'J'.i.*.

I- .4 ..,.;,... (. y,. .'.'1F.'. <...m..,.

q

.g:..,.'

,,;.i

? 1..

1 y ' :'.',,L v.

y c;,.. ;.n..

t

...,; ?. qt.; f, p

,., :3

_ / ..a ....i;,'.. - p ,c '. : .?:,.t :.;' "'. l :'.

y % ), e y. ;.,,.: a. -.,_...,'sl.

c f.,. ;,, ',. ~. ;. '. K..j.. w. ', 4. ., ~. !.s ;((:.._ F..., -'.,

: 4.?...s..a-.

r_.[ e' '.,,,,. g. e ..:..3 f,_...,..._a.#.,..(,,:. '. e.;,.:' . r ;,.-.,>-. ._..,;.,,..,,, _, p.-,..C f ; ' ::.'.t. r_,l._,. ,.~-. ..y,,, (. - *,,., ;.( ..... ], ;:., ; ; ' _-'r.. )'_ ', *;. '., ' ?. z il. :,..,,',.. ' _ . ;j : By ,%:,y G

?:..

., '. ~.:,. " - _ .. ; j; f

y: .: :- ;,... _... u.} w... n ; _,. 9:.

- q,',;:l., Q',y'l _ y.;,[,, f g;,, % - p. ,- n.. ;-,._..:.......-'.. t .. v.g :.' ',c. '}.f : '.,',,(.[ f. &..., g_9.....y;,,. ; ov. f:,3.';.;: l, j n _.-ly ;pff.:r[.y j';,,. %a^.... ;' a c ;..q f 9 ' f l. '._? ' gy.. 7,.; [.

;!;. ',.; ': :p:

. ~ j. " _ '., ( :.'. ;l; )', l'l' 'l _ f _._ f,., Q,.,:,\\,, '.", '. '., ; ' l '. -l l. n.j.,'. Q r l y yl. p;3 ;j ? 4:f):,QQ.jf^Q. ['r,.*l:Q).f.[)l .)c ,r r- _' yl;. y -[:. , k.{.h}'@$ t v..';(i t n {Gje'l ,._) f.,. J lTl. y.,,,. ;;,L;,,,, e

.-, -': . :) - i.;;d. * *,

..-s.y. L ~ ',. .. t x. ;. : .=.ylk)::lh._. _,. 6 :. f '.l _'i ' ' N,.,. O. 'l'. 0 '. ?, ? '.}."; .i. } R 'll.Rs 0.;...: v ., - m?

h..

ar.. .. g..q s y.

9. ; ;.'..'.'.' _'f.; ': _

Mc f.rQ.%+ G ": 't..,.,.. y ;,. : ; - r,.,,.l. ; _,. q(_g; ' ' ; w :;p' '.y/ e., m ') f.g.- b "f .:.., c. ; 3..; ),4 #m*431.b".:.p j., Y, #,.g. ,3 8

1 ',' :,,'.' \\!(..

l] f','l.i, f.'.jf. ' N _,,;l.))ll;.j:.k. 'l:{ g'0'!' '.. ':}.[ 5.1. Q. $.:;?b, $l

. '; } : : i.. f... ;c;.u )' ' '.

6 ff.$b)h,,.,.pfy.jp..p,; f'h q , Y~ , j f*,l?..b$1 i b y.. s)y?. e; t 7,,. : ;-.s : ':. ;.._, - .-;.. : a,..$..

1.. yl._ l,..,,.-.--,4 h+_. ; y '* f,, y, p,y0;J,;. e ;.*l'.;.4 : <' -(,.f,.

.v -..,. '~jL;,'* .. t,y

4>

s....'.,,-v.'.1.'\\.,,,.y ~ _< a.,-7,, . _:y., M ' _..; :::. -;".- .p. :' m_ ( . }, Q' 9 l.l,. ; :l\\ }_l'q,,1.p.v. p '; d, s, -

a f

, v: :..

.-1; y " :

. c y',t, "c',. ;, i,s.

if:;j..' 'A&, ..w

rv: ,[ }[c.

,,.... -p'... : :f

.i. e -1
4.,..: of s y t,h,:.@$'&g) V;yj.4., 9; h. l,l, m,. ].

r ? ' y p p M[(.. ',..l:.i ' j ', j ' ![' ',, :. : [: 1.:;5 l- .? w.-: w:. 'l. a. 'y Q w v. =. w : - l n. .-)> .p;'[;.p&m(q.mfy~.n..n,.. O:.7 +.. :. x. :... '. ~

n :s : 5..

.+ me me . n W:n.. ;; ' i.q % : :r,]:.:.; 5. ; ::. lxy. f fiky;y 4 p. ' p. .... m: v. c. ~... p...:,, wl.%w n,,u..'."

W w

-Q

Lf: :. '; l;;;:.c. '. 3 "" l. l :kJ:

. e .f,; 0f. I y,'..) 5 Y

.'..'....v,.....; 2

- > ; '. :. z,."..... a::'.;;r. '... :s,..: ' e.:.,1,i....:...,,.., - -y

.v. ,,s r .s .-f.., .s ;.. -...; . ; +,.; ,,.t.7-,3....,,....,.. ..v~a ...,~.....;..

,. ;. t r,...,.r

..r.,s.. ,...... - < '...,.,,........... ; ;.) ;, ~., ;

3. g O,.,.,.g E,

.,..c.. .g ..e.- g..... .....,4,. ..3,..- y...;-.'s...>;...., - 2 4.... : :.. - ; n. .s ,").. .,.,. =,.... -, -.. <..-,+ _, _+,.s..^'..,,.. :+.., :?.., ' '- r.,...c,.-..', c., ,c....-.s'.:..,. 3 ...s. ..:... '.-.,*;*'.s,...~. .:+ +.. ' -. * ..~,y: > +.. .y i s o. " ;;; ,c. ..,g. .'..,.f,..-; . ?, ...<,e..,, 7. (

t,

..,.;_ ". ;.., _.', -.; -.'i- ;i,s. 'R '.'.'(,a,4,,,. ',. '...;.;' ?,y;-'.' . ;'v. .s.;.,..*.- . : : '- ' '. +. '.,..[,.,....g... )..; j...,..,0.,o , d ,a- ..,.9 y g,f.1, - ,..+.. +.;,.,.5,....,. ',, i ~ ,y.. u..,.,.,.i.,.;. P -,... ? w,( L. q, ;.. - - '.,.g* 4 i n. .);...r. s,...'.,n.r.. : .c .d.,'.,~, je 't (. s ~. n. ..5 + _.O'.. .. ^ a

y. :;. ;.. - '.

..-;...... ~.., .? ., -.... f. ;;,, *.., ...~ +r , + ,e .. -. ~ - - L.., ..,.e.._y.. <;, :y,y ~,.. .,...u ..e.'. t 'c -. \\; ,.m ..,.v ~ ' .'u ,._t u,. ;.... '. u..'.: ..x.;. ^ e. . ;.,M,, i,,.. ;,.. ' ;) z.7-:. +.,

. Y,.

.6 ..>...q.. . y'.._..,.,.:.r,..._.~.,u."..i

;:...:...;.....-.. i.: ;,a.>.,,

.s. .......~. :, :.c..:,.<...:.. g g,; L. '., ,,v.~:..<;..,:. . L :; re.. ,;. ; :,;,:.e.:

.s.., ; ;...: ^

. _ y.cm. ;<.=v. ,A ,.,...,t, .,.;-. ;.,;.'2...,. ., t ,.,;<x(,y*t-

.v'.,.;.'%..

. 'n.,. :~, :: :; '* e.L.'+r., ,. ' +..,,-, ?:* i i. ', - -. --i.t.., i b y .G 'A.,%.-*' '.',!+.*.r.-. .. -v:

,s.,*.

+;. ^

.m

+,

9..': '4 ,r - c (.;s,,: '.,.' n. a : (, . -,w.' g ;,.., -,,,. ?. y ,.3.. t..- **. a.+' .l'.} g..- ;;. .e 4,..'*.-',-"... ; '~ ..(..3.,.,,,_. < r[.,, '.:g'. +, .. -,...',...'.L'., .i.. ;..:,.J y - . 6 ;, . - + v.-. ; W~.,.,,..,.... .r (_*, z..'.. j -

L.,

1 -. ?' : ..\\ 1 - ( ?,,. -....Y;.: 3 I. 'y .. j.....s y,,, '.; ' ; g...,, l, f.' /..,:- .j ' j, -;f.; ,v-

s,s.,.

'Nf<.,, . f

e.,..'.s.-k

.,4 3;. ..... -y... e.._, lh. ,..,A.+, ,I, _.s. .e. ..'y ~... - -.,,. .\\.. '. '.,;,,,..-.. s. ,,....,......,.....;,.g ,,,s.,,.. ,.,4 . _. -i., q;. 4,,(: -..,,n. ~.,,i,.g..... .3.,, .j ..n

;. ~

.,. e.-...,s._q,...,_,.;.,,. .g.:.,. w e,, r, .3 , ;$., :. 1 . s -,., e.,., _ ,?.-s s- ...,,n... s.e.-.. v w.,. :

'....x-e..,.

.. c ;,. j.g.,. s. :. o.),. :.. p: <( ..c. .,.. ><'v ',..t

';7

.. : ^ j \\' - .~..n n y n..,., ,s.,.,..,...... -'N... ,+ ..,3(

.s;e ;

,: *.,./s .r t. '.h,," - te

. 4 p.

/ '

'.y' { '.', 4,'j. l..,. :.< -.... +,+

s,' t,'- + z i,ls, ;..' _, < ' ,\\.'..,.;l,y.,,., ...L,..:;.. -i. ;..,,.. -jx, ,....'.?. . * ' +*.., A.,..y 4, :. l. ". , '7 -.' ,o-~ y - n 1 r - . t ,0 i 6 ...: 9.s o: 't g+. +.,, i( T. g '." ,e f j*." + .,.,;3:.o;. y ', s. '.-

- y,.

~l:. G., z :.. -.;' '.. - ;. ?... ; - a C^ ' c i.. w:: 9..,,, ,,r. ~ +-.'..... _. ; f.; {. {, ;,..','..:.. '....., . '. '. ^, - -., ;

9. r ;,,n},,l *'. * ' '.s;f, *:. ' *...

' I*:'

*}.;'l

'l',.

..j.,

. ; J _ '-l o

il l. ' j.. '. .y W* ..,;.. __..... :.l \\. ' *)...-** .~,./.._' + .. F. ;.....; - ..,,, - ++, .,.. -.- - r.,,., .a .;-t..:-.*. -;,(_.. , c.. :n _._. -. "t.. -:-. ..1.,+y +J.',+ ,*,h, .g %_+ 'g + g.*. + ' .ujy 4 f.,,- +g*:.., g 9, +'

.....;,a'.;

g + . sy..y,. ;,., -c _ -u ,.,., ~ ~...... : c.:...:. <;.. ~ :,,.- -. ~ : 4-r,. -; ...,... ~ ... 4 i -.'.' ',.::: '- ^-. : - -.u. -.x..l.

w. :: v.,.,
.e,-: : - /

..s,. .w . ;~,..;..(/.-:'.:.. r.;.a, .,,._,1 i: cn:-, :.: T.'.. ......v. .,i ; C ',. u. ..,... - :-C .,,,; 3..... * :.. - ..,/ o .,. '.i.., ; "[;: *.. u :;.,.-;: A. ;;.c_ . ' ; C.'p.;. .;.,.' O.;". q j. u.- ; "

: y: i

. q.:.:.... f _:. L,.;:: ,s .j....,;.,,.,.,.. .....e. .1 ,.;.i.., ..a,..,'. L, .. c,.,,.: J' .:a s 'n'..I.. *....u.... ... ~........ f 'l ' 7,.,i, _ ,,,'c.,* s,_ + '.'f e.,,

$ i-. ' *

.J [,,l .D', .,'_h:.- .<:. s....,..'d,.. ?.., . ---.;.c..'..- ..... cz... ~ .( - l e : n. ... ~ -.. 3. .,s......,. r -.,.. * =+.. ,,.- ~,.,-.. .s % y,:, ~. + P... ' !y.,; :9: - :.. '...s$.. -.,.,.. "t.:+..~-a-g. ~..:. .>........i, a.. ..-.: s . u r :,

~

y p).....

z. :.,.._.-....y..,'. c. - W.. b ~:;. %(

2 . q '<. '. .... ' *: 8 * ' ... e. 9... L, . ~. .'.q,.

.;;.. {... '..

:f-.

p..s,7..% (,.. '.. ;.g..

'. '. _v,... j. t.. - [ ',.,.,.'., A ' '.s,. L,...,,.., '.,....' ......,.... ',....+..., + *, ..,y., .s a.. . -; - ;.._. ;. t.. ':; .- !'.3,: :.,:-; 't 7..1, 4 4....,.,..... -. A. ...d- ^.. - :, .r - .s- ?...f :.,.

. '. 's.. -/ 4 9 e7,e.,..........,..., ;., s.;...:...,.~.. * '. -l ' -. ). 8 7'....

,y -..,,. - '... * \\ ,r v. c;- .e . j k. .u

a..*

'._.y.

.....,..-. ~. ...8 '..,...g...y..;.

...n.

,v. s_ .~ u:r w

. s...

....~......:. .;.3.........s....... ..,....g........,.,....,.- ?..... :,: ; ,s _. c. v. ,,.'.';.,. ',. -, --,.;...e,: .er..,,. s...;. a. ..,,. _..:; 4. : q., m....',.. q :; ;,... ,s. 4..,, : ; ",. _',,, < 2 ?, ;u .c..,.. c.>.. .s.._...... _.....,. '... - J:. .....:.c,.,. ~. z.; ;,. b.1 ;. -. 2.. : .:.\\.... ,4 's. ,.......;.....+.s... a, : :.. -

s.....

+ 1 u ...s....,. ~,;,..,; ; -;..;,,.... '.:'.':.;..,..,

s

,.. -:;.L, _ _ -(,.}, ',.. . 4 '.: t.. : ~ ;...... _.~%:.f.<- (.. '. - -.;,. 3,../. .s + > -- : e ?.- _,,.;. 7 %,.. . -.. e- ... m - .e; ' - L ^^. .s'. . '..u + _ '. . ::. :. ~ - . h. _ _.,';' ;......, _.' '. ', ' .L;, . * 'i Y - l* s '..'.l - :.. h. %*.*:_,' '. ~ -:,,.- _' ' _ - * .. '. +.'.:... ;;., ..,i,Y.:'-'.'..,' .e' -4....y

vc-

' '. ~. ' 0 - ^;.::: . *+ . - - +..*. '... . -,' e ^ _.e ,,.:.,f.. s.:- v c' s.' *,.. ;_9,. j.,'z .u ..'q't_. ..:+;.,_ _~. .;..; - _L9.,l._..-. . y. n; -,, _. ' - :. _. ,? s. .m - '.,.' ~ L.)..., ' ; ' ...i;'.1:.-l: .en, ..i..,,.- ~ - '.,-

v.. ;. ::;.. :^. v

.-. '.-.._:.. ;.'-' -.-v . ; - 'e:..

c '.'.- '. :

... '. s

.1 L,'.,' ...y

. 3..; a. ;;.." : '" '. '.

u. ~L

u fQ,i,u ':'u T..... : <: - -

a..: ',: : }' _f. n ? . L ; ': ' -. s,., .,.;.,. i.:..g. ..'t.,.v.. -.,{-,- .'--. n... ~, N ('.: ..,.:{.. ;. : l ), -

'. ' s

.a ,6. - +.. . 4.. , [ _ 3,: -.... >c-.i..... 4.. -.,:.i.* l: vl....,, i..-. ', :l.., s t. .,.f.:, t.. t.;,q.,t'. "p r. 1~ s'.^ ::, #; ..-m,

,. b < ' *..s,e ?. ~

. 1;. a,.7. E .u A . +- ',.>:..,u m. .....c..-l> e .e e. ..4..:.... ...r. ,?.-1.,,, .s. .... ~.. . p,. ;c.. q.,,.. sc s : c,.,. -,,,, - .... 1 g ,, j- - f..q,y : .~.t;.. -cr.;,3.. ., ~. ......,-,.,c.. t

~. -,,,... ;,.....,.......,:.....-:,.

s. : (.- -,.a.

q..~. *..., ~ '

..r. ..,.t r. c 3-oh .e a n :

{ Q

N:;_I;;.* R g._', '. '.: '.,, _ ', ',

.,[_:+- *. $. _' '. 1. ) **il } ? l... ...;. q. m.-: :, e,.._,..-+ -*;l.Y '!* <.. fl _ '

2. ~

,, ' *; ;.f. : jf,, _., - N '-l a s... :.,, Ul.._v....v r,. - c,. r l :._..... 7..'.e,,. ...s..- . ;:q.. ,. -.:. ;;.. '".. ~ 4. .t . -.<t..

f. ';. -

.o

s..:g : _.,._.,-...'39 s. _. -.'.;,.:,-

<.-,+,,.3..,n"..~. ,:1Y 2, _; r. ,-.p. ,z......;. , ; p.- : ,3 i r, -s. ... '. w', ( ; l..., c. o w.. -, y '; l -~ ya;- ; 7

; ', l} * ; f. '. i, ~ r ;.,...' ~

ll l':h; : y b l J,:,. ,J.;. {. &. ; ', s.: ~ ';.. ',+t','.. Q &..<.?,f '....f }.l. >.c.,1.....-...: S {.

l,'l g ; #.

s v. r s'

.y t v,a s

..,-t.. .v. ..,y,s ? '.~,'7,.: ,?. ,s. +... ....,.,.,.sr .y,, y.'...,,-,* ,t, y, ...,.f.,. ,, - *,'.,'.3 ,1,, .- = ~. -, '. - ,.s .... ; s.;

a.

c.L..,.,r..*.. -.'. _ y, ;,,r~.:vr.*.'.,y..- .? 1 ,...,,n...,,..,.c,..,.,,. '.

< -,- q.:.;,,. $, ;.

.? p 'i. 3

f. W. 2,., ' -

J / [, '., 3N ', ] *,.*.,.) t ,....,..;(,, '- l, }., . g}' (, '. p ;,,, %, ' ; ' f, c.

s 1

l , Q. 4- ~. ' - +. 2 ' 4. ...,.. '.. - *.4'..,..'.. f r t.,Q F j'Q ':. - g.. .1: m..,.... '... ' * ,d. w p j.,;->.,. I- _..,......y. y,,.. ', /.[., -.> p ; p.. [ ;. '.'[ ..;i, , ;.. 0,l, j,; lo, i g, 7 -^. s --.,,,, . y. \\ 3 .. : J, l s.:y ',;g yl.. y..,:..q./. k.:- j_. K.^ y ;_ ^ ;:3 : ^;.., L,, _ -[,.. _...l . :f. :;. 7.:,. +t .,,;. j.,-, f. '.:.:, y,., :, c

f. v,.,...

y,.~... :.i

s..3..r.. s.L..'*..T.-

-+*-....--.~...

..,,r,,~,..m... ...-...l..,...,......3.,.:;..,,, _,...,.. .c.... ...... u ;., t i,,, - y p v .._ _-men . imensuesuuusuet.. - ....,-,.....--.a.,.~.-. w'.-.1'i.*s- -.J...'L- '~:...-- -.. - ,r, .,m,- u meessiempusumumme - ? * ' ? '.J. i.. :. 'I i. ; -l...., 1'4 l, f. : -, t,,, ,L f i *y g;s,.b c.Q 'lA '.'.*' %.n....,. ;, '.. f .*). e !'.' i. i. 3.:f, ;. ' * '.L, ~ s ^.'

.i

+., _. ' - - .s l.'_,'.:.W,*,;..r', ....',y' ? l,, ..... '.: u c :*' '. %% : '.. ',. : '~... L ': l.

..f,'-

u,;. n p*.: .v.. ,n,. n. ek.,$.e ; *{. +, f'. / ),.,., v.

s- -.,,,,,.,-,

.4 m ....r

.,'. +_'.

,y;,. "/...-a- .-...:.+. ' .is .:.. ~li L ^. .,l,; l y

_ h? * *?.,'..,."

y' .y ,.'~.','.',l <*+5 ........ '.:....,'.'l) + t !,. N,j; $.l, ':

c-.,,,,.

,*l_.,.,.s,.' .*..l,,..,...... -l l..

i.

.,..,...,...?.,.'.4,,o .,,,.,.......s t.. s '..

>.C i "... * ;.'-,,, -,. -, -. +..,

? j s. ..s.. ,e,.,b,-.,'.

+ -

.,,', -.,,,.,.( ..,r '4i; *. n *: g .tc.' :.,.,.-'..,.. 9 z,

3 s.

.. ~:. tw,,, V. Q. *., v f-Q:.... ,L f. - ' - *.r. p -. *; x., ::.. ', 't s-g..-.;y.c.s'r g. ,.;. 3. ; ;. ,a7.. ' - s, , 1 ,c. :4'. s, 6. p-.. >. >3- .C. .n- ,(, ' [ M, '.. h.

f. J..

' [: , }.i" : i, '..b ,.,y,-.< ~v ..qu.x.,.a...

m... s::..c.....

..,<.p.;..a.wr u &.[c,.,.I M., (.. ~. ' 'f O- . ~... w.c..;. p e...x-s,' .: ;l.- .. ;.a m.. m)-

.. M *:.-.-t.

2 a. .L.. s,; --.; y.:.nm-a; y... n. / 9 :. .s.- .,.,.'.-.:p.....:.-...J..,'..

t. y

',yl. a.O !;< ,.s. v.*. '.. a.; - ...w- ^ -,.. .~r ....,.-.;..,.'..i':

-..,' > ~.'; -

..a r;' a t -w. .c.. a- ': k ' -.., '.,., _..,..... '.. ',,.. -,,, -,, ' _

', J,..n %'

; ; l, y ': j ' t

+

, '.,e,,..'.. .,..,.., w _' '. \\ :' '. J. ;' L 's t;D,.

V..

. !.*,..- 4',. :'.. + .f. g ' '....., C .,v &',~ -+ .c. .,,y ,e ' - ' ;...-* 77.'*'....,... y ;; c .-.,; m' : r.,.'.b....I,,,;. v.:.... ^. .i..:e,a..*E.>....p.',)*.'.V.*.!.....~..R,.*,e.:t..',0.o t-o f. -,,1-', s + + h',,. ' * [A' .'.'s1

4. ^[: el. I _ '. l a

.N...,-?..:?. v..,k -.'.&,'.'.'.;'.:)4.'s.+.- +.. s.. m:. *....+..'

.' ' v..y r.

M -,i

- '..'-.- ? : *.':..~-...s..s:.-

',, _ --. + >%.',\\-.., .,,9 :..

.nv

r
~ ;

. ~...., ., w,... :. r ... M, '. ';,q:. s

a.. s.*. '..,.

-C..:,.. Q.. ; ;. ;,.,.....W.'.'.'.. <,... .,l.--. . e.,T_ .' 1; s ..' 'a ! n ' ~.

;k* ~.e4;

.. hc; .f.....?.,, ;;k ' -.'.y ) :...Y. .,...-....J. ?~ . )*,,.-(. o ( V, < ~: l ~.,_'*% '*..;-.*.',., )[:. n,..:

,.,.b.

t.

. ;..y...,.;. . +j;.,,.-.._..- _ m.;. c.. n.v.).. s. se.,. .b'. y. ; !. ..)y ;. ...,, ~.. + .,s -,,.. ~ a ;. -., ~- *n, n..;*;> c . ' '.~ ...? < L ': , ? *.:. . : :.\\. ~ i.' N, l' \\*; f., 9 ; '.h. \\. '.-. - 7 e. .. '.* /: ', r:... . -l..'. :, n'.-i<.' ', "' '..<' ', ;., i l ' '.',e ~,;'. f.g, ' N,..*:

.':. ? '

,,.f,h, +,,

l

,3.+1...'13 j [.. :.,'. : ; c.. ' f.*. .,.,a,.s. .ll *Il t'

T.

...L,6,. -1 . J... - ~ + *: ...',...,.,...t' 3,.. f ',.,6 -t n.s-: ; L..+.'...t. ..t*. .-g,.n.,.- w f-a. "..,.,. ; 4 +. < i ',.,;.. a-a.. ..o, s. L...y ,,yf.,. ..,...A...,+........... c ,,f h 49.s(,s.,,'.. c. .2. + l': ... u :... .r. -.,..;+.,'.,i , p.. s. -m +,h*.-.3,n,3.c....,..,..- a.- .,3..1. .a - -., .L.. v. n,, ... -......-..-...1 ,g .. c.: ..;.. '.,.,.,, s;-~,4,,... .a.. .u.... x,... . S J e;... k. %.........i.

m r

-..a..: ,) .3 g., 4 ...(..,..u .."._.:..,..,.-,.+,.-. j. ) , ~ >.....

c..

z.

y.,..

w.,. .t<

.. x-

,+ ._:...-.c.....;..,;,._ p,. c..)(......,.x-r w. s;.. _e.. v s... , 4 ;.... ,s -. f,,,,; g '; : :. _ - ..s ;. ;...#..e n. s .y.; 3 - -.q y,, ',.;',..-o w. ._...v... ,4, .1,, ;. :..l2_. p.g :. '...l:- [...,,.;-,.;=......'. 4 \\! y. ' :. *' -l.,'_ u '. : :;* '-,'. n.:. ; ., - [., ;. : ;'._.b.. r .4 ,.7,.. 3 a - .a _... -, :. y v.c...,. ~.., .t - .,'..s.:J.d.' ^.a: ^. -.,,..,. .s, L.. L I ,e.- . ',< :w,.mi.;a. p. '~. : ^ e. . : e *.

-t

';;< :*ig.

./. :.:t, .. 'ur lf..,D.,:;y..:%.~v.;G ._ v 'y-..,'n..-.,. ., e..... : ; '. e.' ':., 3'..

3;;.

? : :.

. :. ': ? _, ;:w.

. :.-.,.;... f... :'. N '. ;- . _b. w:. ; - . * :.0 ; d: '+ :.s '-VL- -::L, b 'm ...;.. /..

. h. _.

1 . L. ...?.:,,'-.. <.. " . >. <. >..:. s._.;.: ;.-,. - ~ %,s ; : ...;'.s.-... *. .,s

n. i..:.

..=i:. . o. v,:. . 4,:. :. ;.9 .~r y' p.:[. :;.., .-l r r.c.... _ .)._.;y. ,' _,,.[..f.. (;,;j ;.)... n '-;..,.. a;;:y,. v8.: . g ;.[ -$ l:... :,; 3.. g.; ; :).._}.,,.,..

.'r;.. _;_..: ., ;..;.';. [._.

+.s.~:,. .*e. . e.e...,"2,..,km: ~.,e...P ,..w . :, : ;,...,. t ,...,<,.,.,....5.,- .,e,- g...,.,. < -. w-

t. f.

..s.s... -.,.,.,.y. g,...3, .8 j p r.,.'.:,,.ie.,.... 3.,;.. 3, 4.. n.- w,- .i.- +...,....,. m,....e x,.: .m. g -.i. :..,: ; ;;> . c o,.,.,.-- ,.i vm..,,.'.,.<,....,.,s.- ......n....n...s.. ...;,, r1 e... ., c;....y :.. ..L..,.;?.,,:v,r,,p.. c ... u 7,- ..;.:. u, s. -.. ;.;...y.. ;......,;,.a. s,

m. :.. v.,.....y

...J.:.1.e:.+..y:',:.i,...~.,..,....- W.l..f' ;fl' i.&'.7. U.h.j$,..i;l{ ?)Q :)'. (~ d.f^.;f;,;. ~ ;. s..,, t,.,. ..:, f 'YM Y.~..&,N.f.;.W?t.$?!f'Q. 0%:: v. .V..,.,,.. ...,..,s.,...:....1...-.a~....re.

....... ~.

n'.. ... 4.,..,,.:.. : ~. : ".. ~.y..,, ;.. y cV::;;

e..,,e:

.,.. V. :,. t..,t ?f'.i. p' : &j : &.[.ll).. 4 '.' ~ v.I'.O.l l N::; se

f.;;.~

[. ~.... w......., ..% '. 7 -* ' ? :~...?' l y,, ~ ~ [ * ] q.G R }:_lJ:'. " y )..,:...,. .,. s.... u u. <.~ s...> %Q. ?s..-%w..;' '..; q:;~ W, hg)... .y% % .';f;; ;&.,. f:: \\ c:h.. :.%,. 3; ;,, .i * .,._..$ '.:;; i :* f..... . '.!,x,,..f.'..*:. !,, ti, * ? n > 9,'. h "ll:.. ..J..l.}

1.. c.?. c.i'... '...': j,f.+: n,..x ll.;

). .t t.. . m< :.,.;. ;..,5.: ,.,.w",...,. - .t.. v ~ c.:w..m.. -

c. M..,,.,,. y..'. y::q
c..

,z i :.. ',.a . a' :w. :,)-. ~

...s..

e ...m ,.v...,. ....j ...,e ....x.,,...- ,,,. :9. ):..;.,...,,r.,.. .:., q:Y _.. : a,. n.s , ;,.s a;; :... ...p; ..yo ..c... ..v...,,..:,.._.v...,...t....s..,.y..... g,..... ..c ):.&,..=.m..p. ;:,'.. -

1 y - e.3

.. 9, ~.;~..... ,g, ; c ...~e....,. ..,z 9 1 .. e: .c......,, r. p:. 3 <sv. .t,. .i!,, ! ,.+, , :.7 v... n.t .y- . >.v-..,.s.x.:'..o.a,...f .e... ..s%v.

..,. c..

-:., n, ;u...., r .s. t.:...,-

1,.

y.., 4,.. w.?$ - W ;,'h{$* f;..;. ! ..yl ^.. s. y<,'_.,'.,,..j,,f'.'f,>.}.;',fy p t 4[',?. ;;{ '; <; y. ,,,., y,,;. ;,;;;.f,; _,,.

m }<. 's';.f

^ -..

. Q :_,, d. ' y;,.:,,(:,}*

.',...r.sg.,.,._.'.'.,'j,.'.;.

. Q f:. : ' ' ; . _.. s...g:.

7..m. ;c,:

.., o g..; .a.t..xi_;, ',:.'.,,.'. ;;y* s y; ;C; t..;..;..~ '* ' r; I --.y.;,p;. ', . 5 c,.

...) ;

. c. ..,.:.-.... s ' f.:j?.. {,.,ln.y ;g - _

..y ;.. r.. ~.;;-....,, ;.;..,. _

4:. ; 5: y .,.. a ....,r r .s c ... r .l.".s'~,'. hjbll :'. 'l i..;' N.. Q;:h. ;... sf *.', ',l. 'f].'.[<. _. l,', ;' l).' ';.. j4.i ' :

_'

s ....w. .-. '.lL..f ,'*.).-j,,Q N.. l N~ ?. d i.Q.l.,..)p..S A ' A*?.h '.q'.' N.l:i P,;r":' l- -l,'[:.. .). Y., ;:.a

'.s (i. )'" '.f' ]: .. i;, ';.,% ). ?

t.i.y.*b ;f * j: q :r:)

't

ir**.. 1. ;

'*.G:'.;W, e :' * ".'

;..yl[1,_ q.;.' :..* ;,s:

,.',*; G..y '*'\\.*.2

-'..

. \\ i

O* ?

r. pi v.], a- ,';c'.,.,'.V . l ;Ql... v....<*.d 1,,.,. ;,._ 'p._ . l l s s. : +* *. n.**';...f,...* ,, g,.,< f ;., 3.,.., _ ' g, 7.*t';. -..,4._,, n. g, g:. -..,., f, p. .y ..f ...:...s.-

g. '

[ jes _. . ;,. s.4., v:.. jy ;y y . t - '.,.pffg. '- ,n.,

n.. a.. :.;

,...y.. .,.., ;i ;.5....g*jv.H..,;'.;, >4 4,,'jv,o.. ' ;'..;.j C, <~,- y.g..'.;; ,.y. J....g.,..,.'..".'M.,'s..,y.,.5, .,/,,9...,3 1-,.., g. ,..,.',;6;.;,.<v

., p

,s, ;. -.3 g - ,' ;:.,'a i '. (. . f, i3 .;1 L g,. ,. : y4...; .. n,,..... t.. n t s,, ,}}

ML20069B597

Text

:r=m __=

Navigation menu

Search