ML20072V454

From kanterella
Jump to navigation Jump to search
PECO Energy Annual Rept 1993
ML20072V454
Person / Time
Site: Peach Bottom, Limerick  Constellation icon.png
Issue date: 12/31/1993
From: Paquette J
PECO ENERGY CO., (FORMERLY PHILADELPHIA ELECTRIC
To:
NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
NUDOCS 9409190377
Download: ML20072V454 (46)
v • d • e


Text

.

. Str.tlen Suppsrt DepatDasnt 10CFR 50.71 i

CO m mGY

eco '" >av ce-a "r fJuclear Group Headquarters a

965 Chesterbrook Boulevard Wayne, PA 19087-5691 September 9,1994 Docket Nos. 50-277

'50-278 50452-50-353' Ucense Nos. DPR-44 DPR-56 NPF-39 NPF-85 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555

SUBJECT:

Peach Bottom Atomic Power Station, Units 2 & 3 Umerick Generating Station, Units 1 & 2 PECO Energy Company Annual Financial Statements

Dear Sirs:

Attached is the 1993 Annual Report of PECO Energy Company, operator of Peach Bottom Atomic Power Station and Umerick Generating Station.

This Annual Report contains the annual financial statements for 1993.

Very truly yours, 11.0.Alcyr., b.

G. A. Hunger, J f

Director Ucensing Section Attachment cc:

T. T. Martin, Administration, Region 1. USNRC '

N. S. Perry, USNRC Senior Resident inspector, LGS W. L Schmidt, USNRC Senior Resident inspector, PBAPS o:\\eac\\gah\\pocoafs.ttr 10"~Cl 1 BD 9409190377.931231

\\k PDR ADOCK 05000277 I

'PDR

.1

Building a new Conipany to meet the challenges of a conipetitive market.

l l

.j+

y

_._ VQIlf, '

W

)

Annual Report 1993

,/**~'

T'd. /s A

A

=

i w

Y PECO E\\ERGY l

sn

._..',s....,,.. %.;.. ? ', ; i ~,.,,, :. '. - _ z. '.y...

p.. *

. :'..; *es, ': :

f. t.

3._ ;,.. y. 4r... : ~..; q, ; ~.; *. 3. :,.. A:.: 3:.',...

r v:

,v

~.:~, <

. J '.;t. :. :' _ y-..[ 3...,. f f<; ,':. :..

".,. -r! :',.- i

......f,,..

. y 7 ;;
2.

,l ;

.-q

. :t <

.,..%,,._.. :. '.~ :

, "....,,.. ;;-..:, '.. ' a -.

....:'.'."l.:

' k,:;.

.; s'...;.'..<r. c<.......;..:.;

.- \\

.,.e g o..: '_..i.'.,.:,.., ; ~.. ;'.,

. q c....

.. i.;. 8 y

~..,...:...i..(,.e.,,,..,,., ~ ?., :.., ;j : e. :W c,,,,,. '/.

-, ',.,4.. ',. m,.;., ~,,

..+,g,..'.'.',:..a :

- i::.a. a ;..,:.;,.. _ c..,,

L.,.'...

,,. ~

s._.

w

. _,, 1 3.y

(

.. ~ :, %

i;' '

'."'a oip. ' ;-,..

v:i

.'. ;. 'Q. n:'&.,'.y. s

. i,., g g :- / c., i ;...,, ' ?.'

v..

... '.F L ',. :
e.,, f. 3.,,. w.,.c. : ;; c... -. ;.l~:-

a* :.y+.N;,'.

,. s l.

,.g

.,; w::

... 3 -l+g.. T> g,;, i. n,.;

r.

, - g

,7.

. y : '. :.

,.....,..,.. f,, i, ;,1:

7,y j..

q.

..g c

,e,,,,.

.........;e

..,.,..,.,.)

p.y.,,,. f.ff,*

,,s.. '. e

'..,,,,,.,o.,

y v..

..s

,,....;..,7

>....p.,

n 4,

g ?A.,c..

s..

,a

,j u

.,:.'i,*...

. y,'..,,,. b:(. %.q c.

c. : '.

.s

. 7 q, 1,.

,(-.g f, l :.

.M-

,q - '.; *. .,, ; '. ' : ::.'.;*,*.',,y-c.

  • E**,: -
  • i.;.._.,f '..'.....'; (..,... r.s.. '.,a;. :

.. h'.,,;,. 'y, 3 e-s.:,..,

~1..

.o

  • .." : s tv,.,.,

,o

.,.o

..,.'s.,....,.t r...s..-l',...

....s

  • .:- : ',.. a, n,.:f, s* ;y,. :s

'..,a.-y,...

,... ".k...,..-

.^

.,o..,._.,

..-l.?,

l..y;-; . e.,. v.,.,..,,

a.

...>,..'a

.~.

i.

,y.,.0.,...

.... ; ',q. m y

,...",...yl,s e

.e:

, _ e; s

,::.o. s.,.e

.a,2,. ;; :v.r; y...' '_. * ::;.;;, ' -

' y;;.

M l1.

n.

c -.:

.,,..-a,.r., y :,.,.. _ y:z:,.,,.,~. '.,:.... '..... w y _ x.,.,,,... '.s

'*.,3

.9 l.

o

..... -:3.--

y ::.

,..m.-

.. y

.a..

e,y,V :. : n ;,.y/

. :~,

r..,....

c.

,, d..+f l~,. p ::...... ',

-. :..s.-.

4..r..... s : ; ::

3,.. ;,. -.

7'..v;.

,n.-,.

  • .,...'..,:,e

,.. ;F...1. n.., ; '-

a.p 4,:....

a.

k.. 3 :. ~,. *, -

..y.-,. - '.. :...

...t

..4,-

' i.+ ; L..'.,,,,.;u..

. :. ~.. >,.

g,...,. x

r. - e; e. y. '.. Y ', _.;C._';.."*:..

'.,e.-;;% { '

Q, g

..,*,.,\\

!. n, z... ". :,.. ;" - < ;*

. ~9.:,c; ;*'" ::;,n. :.... ; ;.';, :...,.:v,...t. _.. ',. ;. ;."-. ? % '. ',(; ;5.., -*-' '[ ;

n.

._.L

f. :.

.,,,.,..Q..o

.Jf

.i.. ~ ~ :^ :s.

T

.v

. ' N' % :, :.., - : :.;

4'

' l:: f '. :.-'

4,...

,..',.c.;.

. - v.a. -

-; L,., * <. '~.-

".. +

. C:... :

?-

,.:. '.. o

.;.L._..'r.-

, m,..... ; ;..

'.'s*- ' -

. - 2 i.,

,l. ' _ '

,v r

?.

t.

..,b,....*,... '.,

t

.:. N>W,...... -...

...,s ;,,.,,. _..,.....;...,.

,t

)s #...:-

.v.

p

.....i,_.

.- +,,

f t

'.,t?q..

  • I ;".;

_?,';.<,.

s; hi h '.. 4-ll '*

,.n...

. l.?......

... '. " '" ' ','.; '.. '.. ', ;:lc l' :.. : i. s '.,

M.

.'.l

' :; d

C.I.

. *.. ~ + * **;' l  : ' '. '. ',. ~ :. $ '. J

'h'.

.?.,..'

+

s.

a,. ' ;.

1 G' <,

,. ',... -r

,e,.:,..,,,.'

, '. _s-

,>t

~.,.:,..-. ~. - -

l'-

.. ~. _ '..;_......-

cy l' ^

h.

.c........ -- -

4.. - :.-

.e

~.......

... r.a i.

l.

. t i ^

l

-.. bg. :_ * ' a.: J.. }..... $. m,' n :... - ?. q ' ' ' ': '. '

v.s.

2.' : **..'-' n,,

...n. (.

3'

2? '.. '

.,f...'. ff,t ['

...'.u-

"; .._; ; ;;-l s

e.'. /;

,ca.-

... ;.;.;. - :..,_. - y,p.,..,..,, *.

10 e."

,,s>

,'..v

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

... ; ^

k

......n.

?[,.'. h'

[.

r

-l'l'"

3 ^'

.. ',. ';-* [ Al: ", '; _.,..[ '.. ". [ _ } ^ : _ l, n '. _ 0.[ * -, ' ;:.-i, J. [';.
~.'_ - : :'

l_

_n d

_ l

. l,.l ?*;.', f ^ [ ' ':. ',:.^( *^ L.

If ?,' _' n.

'?f l '

\\..< ' \\ ; f,, ' '. ' *

' ' li: l~._'.^;.'...'.'c. '.'

',,I,,'

,' ':.,- -.... ' 'II l-

.'I.

l,

.l>... f..h ' ':_.... *-

.,' ^

,.Y..i','

..-'p.. '; ;....,;,,- L

'g ' '-

  • l.; 's.,.e. :'.;h : L.f ' ' ".;, 'v_. :.-, '......':x...':....,.,

~;,.

,f'*

..'.'l e z:,. r - ;: *

'm

.., %, ;.. u,..

.n,, ' y. '.

'y-3 y '..<-

.m. ;_.....:.,_.

~.;y

.; {'._

.,. : ; ; * :,'..t :., y,

u.

,.r

.y., :~ l'.

.. - :. l',; [. ' :' ' _.. '. _ '.. :

. 7 '.

, ' ' i

,;.._ '..[ :. l;,;. " - <:-

.... ; '.;.;
'., ', z _ ; l' _ - ; ^.. '...,,,_,.; ;. ' u

'.'._.',. T,p., ;..* 4

,(,.':.. ;,,, ' ; ;.,. ' ' y -,; q ' '. '

?;

)1. _ ;..

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

,v

...3,

' :... T., -.. _ z ' r.'.

  • A ;f;>... e,.,:,

p: s ::_

. 'y;;, ;. _, _,..,,*.. _..

.;;? --* -: :; '...,,r.

t

[. [

,.j...,,' ' _.. rq.

, ' _,. ~,,' >..,':,'

;.(
.:.f.,:, *.. *, y....

_ G;'; nlE.;y,{. :,.,r..,~:,, ' ' ;...,

',<.L z.,

s.j

. ;?..

l, j.

...:.- - -' ' ' *,..; > ;~. -

, z. u.':

_J

,,..;,,..,':..+; y ;,...

,,,'.'s,.~.

r

. '..... --,v.....c

.sC.. L,.,.. -

z..

-<,.s.y*.

. v,;:_.,s'-

p._.,,,

f.

4

.. ', ~.,

,,..;. ;.,.., R ;;;,. y -.;..-

. :; _..,:e..'....;

p.

.;... ',.:.-..a_.,,

t..e.,..'-

..s...

,, L;,, _ _. -..,... < - -

1.".

c..-

' "....i...

.s

, t;;.v.....

e..,

4.,

+-

a-

-1

, v' f

i, l.

.,.,;>,'.;.ma.*,

,;.. ',,6_b'.'.'.:.;. >...y.,..',

..,?,-

f.,, 3 ' a.

. '.. '., i '...;-' <',,;..l:',', y'.'.'.',

).A,,y
: ;.. -.

T 3-'. ' ' '

r., _ :.c

, L:

. ; f. e....

m.

3.. * : e,. - 9..y \\,;'. '..

lD.."..,',,:.c._*.

a ;. 'y :;- *..., ;' s * ;;_, _ ',., ;.,. _ ' -

<?, '..,,:_,.: I *r, '.

_h, ~,;".-l". *..::l,;.,'. ',,'.. %.. :".k' '..,".;i,M. 'sg:]!'.. &,%.

',,,;n,.,.

,,q_.

,1

'* s.',' ; ",;3,.. '. f.;e n ~. _. +.,

)-

,-.f

'. l L I'.

  • -;'....,:...n.o; n':

.._;. \\ ;,, ;.

e..

z...

' 4:. ; '. '.

',*cf..,

. !!; ['l-l, ;,. { '. 'h ':l'j; l1*,__',..'.c,.-

g

.f...

, >y ',Q ':.. A.,

  • ..; 9;;,,.; (:;. L '
s _,,,[.

'(*'^t'-

i.':-L.l. ** ^ \\ : i f l

\\,';%, llf:;..},,..l.U'.E:;_ *'cG_ $..

t.i

,.. ;. _ s:

.~ :, ' -

,.".......,5.,

- 8c

< ^ s: :1

. 4_,,;

e...~.:., '.

r

. a

p..s.

s.:-

_. : - rp

.v,.

.n v

c, -

. :,.. 8..,:~:

..., t; V_., j,_.,.,.,;. 'y,4;,. _ *f,;

.-s,*

Y.,,":.g,',,_':

_ ;-,C,r.. 3:.- Q., [,'.[ g ;;.. :*4,,__,,,s,.,;,.,,

^

f

%n

.s,q

...,,L,4.,;,....,.p

3...,..a

. e 4

xt,,L.

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

W

,H r,-

.r~,..'.:.,_.,.

. Q',-.r t.o..J.1'/. f :e., ;,f ;.

..,3

[

.g

,,v.

. ) *

- ;. :h; rQ [

  • ': ',q'.z A n > ;*.

43

}',.

W

..a. :.;,,...;
.,;';.,.
y y,,1 %_ ff;:.q, % ' ; ;. ('.g.,...,

\\.....' L -.,,3 Q3 p, '. '-lz' y ;'

,,,,. " :. ).,. -

Vj:'k., rj,_e_.._;. u:

.:' ' s ;'

g. ',

M'.l

r:,,,,

m.. e...

'l.

' 9, y },1.s.,j ' T:- i* 'l

'. ::'::'.8-l :-

.;_&P.'..,'.'.'

h.'l& '., ' u..;. :

','.4,i^,.

,,i':

~,U l,2.. e?  :

. @..J.f. $ .1, k

.[

,) $' ' ih, '",, ';.' Y:. :b,,'. ' '.'

.,,l f.

. *Ihl ' t.'[. :[( ',,

."t.fi,y' ; [.,'{: a*';_?:.1)

  • ,a

,. : "4

.s[ff ;& [

.l c.:,.

l*

_R' n

.h, h;

9.I]W

'l,i*h. M:,

I 2'h, Os,.x, lg*.%[.Wy2, Q(, g* [,'...,:G R, *[, $'Yh '

j.8 E,I

M.

,y",

.. :..h..-l.. d. i. ' '... ', f,

. Q:.,.:,, ?.. :;f." i;^.:) '.'.:.. :.. : '.- 'n,". -'...,,;t,'.

f i,

4 yl,b %j &.,..i. 4.. X.e'{,.+, l. ' p't

.f-c. -..' ;

...;,.. g. l, ' i o>

L n:

gare

. _, :.. ;., j,v..

.s:

4..

1 ',

.'/. '

~,\\.

.l^,.. ; : O, y;e ;., jfq ;; Qql,,..a -. c.oj'

l&' ;.;

.}, '.f.({; '. y '.l,U ll"l. ;.q... h :,. ' ?' -' & ' ., ;'.. ' ~. l. - '. -

^..

)., ',. V'_f'*' y' 'z,,.:.

f ' _. {!.. ':

  • ?;

'i'l-l*;.} k ';(y.

u

_, :.. ' ~.y..;

.^:. '.. '

a;;;-

,l g Me,':)

.'. A :

fl',

.r

  • * ;):[,y (lQ ~,,l-] ' U.,y ;,

,'Y- * :&,,:. l'Q' e

1,.. ?.,..:,2Y,,, -:.,. ; _. g ', l *: } ', :... ;, ..a,l,'._;,1..- l^ g._;,., ': ".'. '. h' ' ' ' l.Y. ,,. }, C <. u V.'>%j' /... ' n _[.. ..g., ' 9,. . *,.. ** ;.; : '.- :,... i.' e, L,'_ [ ::

.e '
  • ; f,. a ;*: l Q-.. s,, s. ' '

.j *. a :. c,. : _ a M, ?).... - ^., } s ' - J. . : *'l,_,y^,'. q ' l z,. n'

L:-

f;;\\ y)l:.,{;N : i, ., _ '. !..l_: ' y. ^.. '. ', '. ': 'll!, 3, .,'l.

  • j.

l ^ af, ., f:[.', ' i fl,. ' {,3' }.. ;l:' )~: u.l. .,., [, l [h ,j, ' /.. i,.,,.. '.,. w ;.; ;..: + ..g.'., _.....,.,_. '. y '... '., ,,..N. K'

' s

~ ".v q ^' yr) * ',. : f..^ :. 'h'.n,..;-v- - _,

.. ;, r_,:**....;d :: ;.

.v**, H; ** ' ',9;: ' ."...r,...i,.*.~.,_;....',..,;..,;.:.._,_s' r,. ;,... . f: y ;y;p $. h. 3 $,;,...;. 9) :-;..,O ...., ;,..,.::, :.;-u. 1-. '.9 y-yo h6 .wu.

p ..

s,,f ; r, _..s.* .....r.....'o. .,w',

i, ' f ;..;9.y.... _.,[
"

U, ,p ,s ,-,.j.)l. Q ,Q. :f, y,. Q'.Y',..,,.,,,,~,';n.. f,:.:),1,} );:'.. :$&. 'V . ?.: l [ [,.a., ;

. ; } :,

. f,.

}.

.,... _,.s ', [ '.l.}... ; ..,.,,!i. q.j:.'3,p y v'; si-.9 ....,..,.~.,........,..,,;,.,p.,..,. .. ::. <,, '. _, ' \\ ", :,.. ' s ..,.,.p.

),.i ;.;r,g.,,.,,...,p., ;,. i,

p 4 a .g,.. g ys R$lh., :;,y,f_lj.,; 9 ;.....,jp,, c .g,y..g g 3-9.-

. 0;q,; ;,, -,.. - j,,,,.j. ;,.,,,,. ',, ;,
,sh;' '.,?
. ~,:*

.c . i.: _,,. '.. ;';y";;. :QL.,4 _f ' ' R. '.A., e,og!,g1f,; _

y., f i,,.,. - l a t (. r-. _,.

^ [:.a r.;f,.',.(;.b'...;',f.,.l f. l l,:l - ;,'s

q.__

) g :.]y

.Y,o, -

?' ,Y '.?' ' '.,. :,., ;;,.,. :;. ya. .,._n,. <,,:,... l~l ;. '), "-)':t. ~',.qf.. ' _ _ y ; "j,: l) ;'. ' ' '. 0

) '\\. ^ ' ; f..,'14,f,.',s ih. qf

. f ',f ', f;.(*, *:., ' ' ',, llIr,~l' f.f :c. ;;. '., ' Y,_ ,f ~ r ..v.*,,e;..c. _o., ..... c-.,; ;,,, ,,.,....,,,4..,.- . y, s..i:,9,. .,v c_., . _. N ' ?. ' t .. ;a _ (, t, ,.b,:,. '. '..,: '*,~.\\..f,L.. <*.z'.....':)<.'.',.'%-N. l.. * 'Y : '. ' N,. , ~ $.. ' :. ;','lll'... ' 'N*." 'l . ?. '! 'o.  : . ^ I '.*b l _r,,'.' ,._:+f;f,.: Y ? '.... ','. ] :.

  • .*.].f. ',. Y, '.] g*T' a'.. '. L V. uS.,0. Y ;-

-V

, a... r L,*, *.'.,$ A;., ','., '. ;J..

^: : : s . ~:,' :" t - - -l)Ry' ;,.. ' < -..:,. - *.., _ "; f. a,, 'Q';lf.,Q,Wl.ytM-Q[i.:."' :: f(,f.- {::..,, ,,.6 j, ":.g g;% s. ..'.:. ;;:.,-.",'- \\; ;.l.h

~;.*.

-n. ,,,., ' h".[l ?,,,..:, l~ c. . ;:-, 'r L. r. n::. t.n. l:j,' L..:_ _ _ ".[' l,.l.,} :'.,:[.,;f. /,';',. y','.;;3 l ' f.? ::;; ?;::: !i;. ;;.,. O ' ' "; ',

  • .,., ;).,., -
p.,.:

, ' '. ;,.' ;. p. ;..,p., : ;.; . " ;;*~; y;.,., u. g,., *,. .,.,,.s

, [;t.

,,9 s ; __,,,,,

    • ; g: :_

y n'... L ; ,'c .%;:'.; y f. 'y_ v. h ': ;' ' ;.'"7. ;'. v ', ' :;s. +r;.o :..%

~,.
: :.... ) ~ ;;.. ;
, ! -,. m,y a

.o :. : u i:... n g : 3-;. ' ?,2 h

  • r..... '; %

4: '. s.

u L,--
n '- *

..,s.: M' . : J, ' l, s,% ') ; : s-y.e c..', e ,r.,

v c <.f ~,.. '.4w '..,.

. ~;k,. ,. v.s,,.yu . :: ~., . -,.,n .:...._...,,,,:.,r:,J. v.,,.;.- t c 1 .s,.wq...,.. ,r- .. ;.e,.. ; s. ,s s9 y-a,,- .- 7.3'4.'..,' ;' .;,v. y. y .t', hv.. *: w;;;.,,,.. : g f:;.,D.;, '.:....? ,.r.;, :.', y ; *'. ;....c '. v.l.,',.j.. g. [1..:. i '.,...: i < :.,, ;.. ". ' ; p.;," '. ;; >.:y. '. . :,. 'j, <,,.. :, [a,;?]% l \\ ' w,.n. ' t. ' 3.: ^!,, 4.., . +, .?,,,-. iy, ' v ;:.... ,,. 7 *,.;.,..;;a. .,y,.s,.,,..; m

,,.,.<..<::,~'..r,.

.,.;,.,s.p.~:'....,..q%, .c =.,n....g;,..,...,... .,.,.3 ..,.c.,.,.,..,,,.c. 4 ., :: m.l,w. ng..,_.

r..#.

.,,.... ;.. e, s,..: 'a.,,o. ,.'; :i,.. ' Q.,,,,.,; ;,,,.

  • w:.,v 1

- ;._,.;~,'-...,a' q..o. 2.,i.'

..a' y,..,.,k"...
<c.

..,t. -yF.. ., 9 s m :.s.* ;~,*,,.v-1l."'..

  • A,\\,.. ;,.

p,'.;'..,.., o a,.s g s, ,4;:w- - *- e ,y ;., z...'....., 1... ...~i..a. >. : (.,; -c y *: - A.. .c y.... t.t v ) -1.. t, , y. is -s e- ..:'.,...r.:.-

r.'. 9, n.;...y;
s ;t.:.

. -.z ':., ;. :., -n:,y.

!..>s

., *. -:ro, n + >: y ;.',? l')t.. vi ; .g: . 7, : g; s...,;..~,,.I.ap,. - a .,,. >.-). x;>,. ;, #:

p
;;_ _. y ;.( _:,

1.l f l

  • t'; g'.

'.. a.,.- ,. u.. +g4,.r.. y

,'f;N.
'
#'~ ".A 3.
  • e ;{' }_'.. ';,q;. i ? f ;7'.[y...l,,R;,'_ ; y ', f L:.:, T, ;:.:..,

q ,....,,w ,1..

  • .C

.n,yl, ;?.8.:l:,.' I.. 1. ;f b $l'.Q', "l:l1 'y %.":n'~f .O,'.'9','.. - ;, ^V .g..,,'p,. .h *, (.

mpwgap n; y f;*1g(Q Y W ?" w s fh Y A. < Qr;a,lal:. n t p-g,py A[t y S ~ m^) in& P l h' l y < W r Mj.p '$2 < 3h "'.- - - - - 'w e . gj f-m E ! * 'bl.' L" ki Y hhh hY ' fi ... Nu $ffMM5 i M k / $h2Nk W M [sperempg@e#Me$saW iiM4 U W E"I 3h

  1. z g$ $@ f A g e d $ s q $@ $ $ n 4 @

M ess@2mese M Wa#41 ^ j d l } A@ 4!$$ $e s e @; 4 d ps f i 81 )$4 L M e i# eg g g f E u. l [p IDMdisM @0$k!$NN $ M$ i WpS$ pnpa{ngsn#%ptpMepp%;[$J L a as,,d y 9 _;z - g " ) ag;" ~ ^ .r, g4g.ggr y w Arm y g' W

  1. Su+yk$+

]g,..-,, lg empw 4 hhh b . k .' l l

  • {

-fl g. e y w..g pg&1R!p ?i. ? n 4 y u Wi. - Q V.,..,, :.Y ; ~ F..._. 1 g&;g. hhh ~ a, y c n-c. m: ly y r~~ e en> r s n, ,m l 0 N 4 a M[w %g%l@g s' m-mw: y +dj l / -- p .g k 4 h C@f; fg a MM 1 t C) j ? 11 ~

  • y%i i.yWBi??g yig Q

fun p p M gWhe 4 quag "g Y +f D ~ m [eg 1 f) / M! Fs V, 1 w

1. J l < a t

6 y l w e y <:j m(:9 ar g g 5. sy s y 8 p dphy@ k] // JMiW W-i ~ Y- =[ l ..h j' Yi f'

7 .a f. Y PECO Energy Company CONTENTS DnincioI Highlights 1993 8991 % Change Operating Revenues $3.988,129,000 $3,962,4691XX) 0.6% Letter to Shareholders / Operating Expenses, excluding Taxes $2,300,195,000 $2.382,742/KX) (3.5)% f Taxes charged io Operations $652,523,000 $546.351J00 19.4 % Operating income $1,035,411,000 $1,033,376,000 0.2% Report of 1993 Operations Other Income and Deductions $12,057,000 $(49,065fx)0) 124.6 % Earnings Applicable to Common Stock $541.590,000 $4I8,210/MX) 29.5 % Earnings per Aserage 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 7.99 Results d operations Ascrape Shares of Common Stock Outstanding 221.072,000 220,245JXX) 0.4% g Construction Expenditures $574,650.000 $563.546JXK) 2.0% t-t Common Shareholders' Equity $4,263,418,000 $4,022,169.0(K) 6.0% Report of Independent Accountants Consolidated Financial Statements l Notes to Consolidated Financial Statements I Financial Statistics i Operating Statistics 1 Officers and Directors l l Shareholder Information l l l i 1 we i t

To Our Shareholders: W l'm pleased to report to you that 1993, the final year for the Company @@M called Philadelphia Electric, was a successful one. p., E Earnings increased to $2.45 per share, up 29% over depressed 1992 earn-4 $p. g ings. The dividend rate was increased 9% and the overall financial condition of b. ~ m. m l M.k Egyd[y j"g' the Company continued to recover from the adverse 1990 Limerick Unit No. 2 Rate Order by the Pennsylvania Public Utility Commission. Operations were also successful in 1993. Electric and gas energy sales jy C set records and new peak loads were established. Our cost-containment program W yyy continued to produce benefits, especially the reduction of the cost of capital through g,g our on-going debt and preferred stock refinancing and redemption program. jyy/ The Company's nuclear units produced a record amount of electricity s ""g by operating at a combined capacity factor of over 78% which is above the Mb M national average. Our electric and gas customers benefitted once again from f) h lower average bills during the year.

j y N

Building A New Company With the approval of our shareholders, the Company's name was changed 0 "* * * "

  • U

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-President and gressively building a new Company to prepare for the increased level of compe-cAiefo uarinxoscu c 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. modern Company that is preparing itself for the future. It also signifies that we do much more than merely sell electricity in Philadelphia. As a part of our new image this annual report is a deliberate depar-. 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-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 elecine generation market, a'nd the realization that open competition j 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-ence, including executives from unregulated industries: i 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 etrective 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 trengineering techniques to redesign and dramatically improve some of 4 our basic work processes, starting with the way we serve our customers. f fWO ( ?

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 Consumer Energy Services Group will distribute energy products 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; the Gas Services Group will be responsible for managing the Company's gas operations: the Nuc/ car Generation Group will be responsible for operating the Company's nuclear generating stations; the Power Generation Group will be responsible for operating the Company's fossil-fired and bydroelectric 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. LookingAhead 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. We appreciate the support of our shareholders during these interesting times. I have great confidence in our strong management Joseph F. Paquette,lr team and our talented and Caring employees who have demonstrated Chairman of the Board Continued commitment to enhancing customer satisfaction and share-and ChiefEm urire offic er holder value. Together, w e are determined to fulfill your expectations for the new PECO Energy Company. S /i .g g .,....-.4 y +. @( y,. -} ~ '.: Sj l 4? J. F. Paquette, Jr. is' Chairman of the Board

v and Chief Executive l

f Officer .+ N'N February 1,1994 thme l t

p./ ' l' - .pe .s

h EARNINGS IMPROVE; l'

DIVIDEND INCRE ASES ? y Common stock earnings improved to $2.45 per share in 1993, up from $1.90 in 1992. The camings increase was primarily attributable to the settlement of the Peach Bottom litigation which depressed 1992 eam- . y i,e.J ings, more favorable weather in 1993, the Company's on-going debt and preferred stock refinancing and redemption program and lower {kOf.f 7 ' ; charges for uncollectible accounts. These improvements were par-p '[- )N tially offset by non-recurring federal income tax settlements in 1992 and the higher 1993 federal income tax rate. In October, the Board of Directors increased the quarterly common stock dividend by 9r7e 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. 6'7t. primarily due to warmer weather and This new Corporate identity increased sales to other utilities. Gas sold and transported increased 9r7e primarily due to higher interruptible sales and gas used at reflects a new, more the Company's Cromby electric generating station which was convened in 1992 to bum Customer-focused organiZ0 tion. either natural gas or oil. The number of electric and gas customers in all classes except large commercial and industrial increased. fu

FINANCING HIGHLIGHTS The Company sold $2.1 billion of securities in 1993, the proceeds of which were used to retinance higher-cost debt and preferred stock. as summarized below: Month Security Milhons of Dollars I ebruary Mortgage h>nds due 2003 6i (>-5/M9 5 250 Mortgage bonds due 2023 @ 7-3/49 100 March Preferred stock @ $7.48 50 April lax-exempt bonds-floating rate 154 May Mortgage bonds due 2003 @ 6-1/29 200 Mortgage bonds due 2023 @ 7-3/49 250 June Preferred stock @ 56.12 93 August Mortgage bonds due 1998 @ 5-3/89 225 Mongage bonds due 2005 (et 6-3/89 75 Mongage bonds due 2023 @ 7 1/89 200 Tax exempt bonds-floating rate 43 September ' lax-exempt bonds-floating rate 23 October Mongage bonds due 2024 @ 7-1/49 225 Mortgage bonds due 2001 # 5-5/89 250 Total 52.138 l "" "b ' "b E ARNINGS AND DIVIDENDS the redemption of $199 million of securi-Dollars Per Shore ties with intemally generated funds and the restructuring of a $250 million nuclear 2.50 - 2.50 fuel financing, result in annualized sav-ings of approximately $55 million, or 2.00 - 2.00 50.15 per share in camings. CA PITA L EXPENDITUR ES , _So . g go S TA BILIZ E lN ~ ~ 1M Capital expenditures for 1993 were $575 million compared to $564 million in 1992. .50 - .50 Major outlays were for expansion of the o. .o electric transmission and distribution sys-89 90 91 92 93 4.h M Earnings Per Shore M Dividends Poid Per Shore fhe I I l l l l 1 i

l tem and nuclear fuel. Budgeted capital With the prospect ofinCreaSed outlays for 1994 of $575 million are all exp:cted to be supplied by intemally gen-Competition, PECO Energy will erated funds, as was the case in 1993. RATE MATTERS proyjde Unique Solutions to meet In September, the Pennsylvania Public Utility Commission (PUC) denied the Customers' SPECIFIC needS. 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-3 ation in the Company's next base-rate case. The Company has appealed the PUC's decision to the Commonwealth Court. The Company's future earnings will be adversely affected if full recov-ery of these deferred costs is not permitted. i . _ }' - +s y n. a 9 9 e, 4 bX

COMMON STOCK PRICE VS. B O O K VA LU E in December 1993, following a three-year investigation, the g,,,,,, p,7 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 of lost revenues and the ability to eam a performance incentive. As part of the order, the 30 -- 30 -g Company is required to file a DSM surcharge tariff and a DSM 2s 2s 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 by the Federal Energy Regulatory Commission. In 1993, the o- ---o 89 90 91 92 93 Maryland Public Service Commission (MdPSC) ordered an in. se.ck Prices 5:. High gag g,,g y,;,, vestigation to determine whetherthe current power supply from oyyng 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-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. P)M SEPA R ATES FROM COM PA N Y 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-l l playees. PJM fully integrates the bulk-power generating and transmission operations of eleven 1 electric utilities, including the Company, thereby enabling member companies to share resources l l and supply electricity more cost-effectively by using the lowest cost power available. Effective July 1,1993, PJM became responsible for handling its own administrative ser-l vices. The 120 people who worked at PJM became employees of the newly formed PJM Intercon-1 nection Association. Severing administrative ties with the Company provides PJM with greater flexibility and better positions it to function in the emerging competitive environment. M PECO ENERGY smo I 1 l

OPER ATING HIGHLIGHTS The Company's 1993 operational achievements reflect the Company's preparation for the challeng-ing, competitive environment of the future. Customer Operations - Delinquent accounts deemed uncollectible and charged to expense de-creased by $31 million due to the Company's aggressive campaign to reduce delinquent accounts. 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 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 E LECTRIC S ALES continued to promote the use of natural. B illio n K 11o w a t t h o u r s gas vehicles in its service terTitory. PECO Energy currently has 95 natural gas ve-hicles in its own fleet and plans to replace 50-So an additional 200 vehicles with natural 40 - -- - 40 gas vehicles within the next two years.- 10 --l----10 Nuclear-The Company's nuclear 30 ~l- - - - '30 units performed at a record capacity factor of 78%. By exceeding 70% the Company earned a performance bonus of $10 million which is reflected in 1993 income. The bonus is achieved under 0 ',, ~ ~ -~~,[~,[,3 the nuclear performance standard estab-Y ~ ema sases so osser uswsies mas nesan soies pany's nuclear generation produced an ept

l i i I 8 l t estimated $550 million of fuel savings for its customers in 1993. j in March, Limerick Unit No. 2 completed a refueling outage l ~ in only 53 days, the most elTicient in the Company's history. This i l compares to the previous best Limerick refueling outage of 75 days. ( Similarly, Peach Bottom Unit No. 3 completed a 58-day refueling outage in November which was significantly shorter than any previ-ous Peach Bottom refueling outage since 1986. All four Company-operated nuclear units (at Limerick and Peach Bottom) now me loaded with fuel designed for 24-month opemtingcycles between refuelings, rather than the previous 18-month cycle.This has improved capacity factors and upgraded licensing and testing programs. The comprehensive reorganization of nuclear operations which began last year progressed significantly in 1993 and is to be completed in early 1995. The reorganization is expected to eliminate 613 positions through retirements and transfers and produce annual savings of approximately $31 million. During 1993, the Company nego-i I tiated an innovative agreement with the Long Island Power Authority (LIPA) which will produce significant benefits At PECO Energy, for the Company's shareholders and customers. Under the agreement, LIPA Customer Satisfact/On agreed to transfer slightly irradiated nuclear fuel from Shoreham Nuclear is the target Power Station on Long lsland, New York, to the Company for use at Limerick. LIPA of each employee. will pay the company $46 million to as-sume ownership of the fuel.The fuel trans-fer is expected to save PECO Energy

'4h:'.'. (( t g_yV . kg ~ n 1 ten 1 l GAS SALES & TRANSPORTED GAS Bilhon Cubic Feet delphia, through the leadership of the city's new mayor and the president of city J 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 ' fidence from Wall Street and the local business community. Philadelphia's im- ,g. _ _ __ _.,g age has rebounded not only locally, but nationally and internationally. In 1993, ,o. _ _._ __ __ yo the Philadelphia region was ranked the third best place to live out of 343 metro-30 50 politan areas in North America, according to Places Rated Almanac. In addition, 40 - - - - - - 40 i Fortune Magazine has rated Philadelphia as one of the ten best cities for skilled 30 - - - - - - 30 ~ technical workers and the general quality ofits labor force. 20 - -- - - ---- - 20 'O~ '30 Despite a sluggish national economy, there are some positive economic U~ developments in the region. The recently completed Pennsylvania Convention ,o ,i 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 l jobs to the region. i i The success of i Quality Management ) i ! depends upon y y 7 teamwork. l a - s PECO ENERGY g l ELECTRIC FUEL COST & NUCLEAR GENERATION 2.50 - O

  • 45 1.50 -

$%$f'3 ,e 30 j J" e4 5 ' '.... ].,g {. '?' 89 90 91 92 93 uclear h j , f.'i /,l' ![.: :: CONSTRUCTION FIGURE 2

"p c-

,../'. yl EXPENDITURES & j .[ [c INTERNAL CASH FLOW '. g ;g[ I,200 ""l 1.200 ~ '..%v 7 m. l.000 - -+ 1,000 800 - I1 800 A 600 - 600 Despite 400: l 400 1w significant changes, l 2w+ 2 I I 0 O-the Company remains .n',,*r, '.',, I,,,'e n.1 c ses Expenditures suam Cash committed to increasing

ricune s

,,,,t,,,,, INTEREST CHARGES Debt Interest shareholder value. 7.000 - , 700 4 6,000 i 4 +600 5,000 -h 4500 4.000 i 400 3,000 + ! 300 2.000 ;

  • 200 1.000,

' 100 89 90 91 92 93 - Debt <> Interest [ Financial Progress Continues reduced from a peak of 5656 million in iv89 to $469 mil-During 1993, the Company continued to make progress lion in 1993. This reduction of $187 million 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 54.0 billion in 1993 - up billion of long-term debt has been refinanced and the aver. 0.69 from 1992 primarily due to favorable weather. Net age interest cost of outstanding debt has been reduced income of $591 million was up 239. Earnings per share from 10% to 79. The annualized interest savings from in 1993 totaled 52.45,29% above 1992 despite a slight 1993 refinancings amount to 555 million, or 50.15 on increase in the number of shares outstanding. The annual an earnings per share basis. dividend rate was increased by 94 to $1.52 per share. With the reduction in the level of debt, long-term debt beginning with the December 1993 pay ment. as a percentage of total capital has significantly improved 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 409 Total shareholder retum 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 thmugh 1993 has electric power output, which now amounts to 60%. exceeded both the S&P 500 stock index and the Dow The resulting lower fuel costs are passed along to retail Jones Utility Average. Assuming an initial investment of customers through the Energy Cost Adjustment; however, $100 at year-end 1988 in each alternative. the $100 invest-under the terms 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 sasings will be retained by the Company to benefit 259 more than the Dow Jones Utility Average at $170 earnings for common shareholders and partially of fset the and 89 higher than the S&P 500 stock index at $197. Limerick Unit No. 2 excess capacity penalty. See note 2 of ) Notes to Consolidated Financial Statements. I 1 1 Total employment, including contractors, has decreased HGURE 4 from 18,700 in 1988 to 11,800 at the end of 1993. Most TOTAL SHAREHOLDER EWRN of the reduction through 1990 represents the release of U contract labor used to build Limerick Unit No. 2. The 250-q 250 l number of Company employees has decreased from i1,300 in 1988 to 9,400 in 1993 primarily due to an early retire-ment program which was completed in 1991. The total 2004 f 4200 l reduction of 6,900 positions lowered annual expenditures l j by over $410 million. y' Construction expenditures (Figure 2) decreased dra-150y / 4 150 ) matically with the completion of the nuclear construction l q.. ' f ) program. Annual construction expenditures are now ex-I N l pected to be $500 to $600 million. Internal cash flow has 100) } 100 also increased significantly and now exceeds construction L J needs, allowing the Company to reduce debt to further i strengthen the balance sheet. OL NW'd N8 'O 89 90 91 92 93 Total debt (Figure 3) has decreased from 55.9 billion o,jon,, A PECO A Sd P 500 ^ Utdstics m 1990 to 55.3 billion in 1993. Annual interest has been 1 j threen PECO Enerxy Compuny and 5 a b sidia r y C e m pa nir a 4taeagreent% lhcomion med Analpis of Finascist Condhion aqd Results af Opersiloh i Eornings 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 earnings by house-heating customers. $0.27 per share; more favorable weather in 1993, which increased earnings by $0.26 per share; and the Company's Fuel and Energy interchange Expense on-gomg debt and preferred stock refinsmcing and redemp-1993 v51992 tion program, which increased earnings by $0.18 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 $0.10 per share, and the higher 1993 federai income interchange purchases, and lower cost of fuel. Nuclear gen-tax rate, which decreased earnings by $0.04 per share. eration utilizes the Company's lowest cost fuel. These As a result of its improved financial condition, the decreases were partially offset by increased output. Company increased its annual common stock dividend by 1992 rs l991 9r7c 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 tc lower fuel costs and to slightly lower output. Operating Revenues Electric Revenue increase /(Decrease) Other Operating and Maintenance Expenses tMdlions nf Dollars) '93 s s '92 '92 vs '91 1993US1992 paa ng an ma ntenance ews heased W Sales 100 b $ (103) milhon m 1993 compared to 1992 primarily due to lower Tax Adjustment Revenues (19) 48 charges for uncollectible accounts, lower administrative Fuel Adjustment Revenue (106) (22) and general expenses primarily as a result of a reduction in Energy and Capacity Sales 3 the number of employees and the 1992 charge for the l ) Nuclear Group Voluntary Early Retirement Program and Voluntary Separation Package. These decreases were par-1993 rs 1992 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. j to 1992 primarily as a result of favorable weather and 1992 rs 1991 I 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 I 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 facilities, the charge for the Nuclear Group 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. 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 Company's electric gen-compared to the prior year primarily due to additions to 4 erating stations. plant in service. .j 1992 vs 1991 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 l993 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 A PECO Energy Company e n s 'o u b s i d i a r y Companies Managespenf's Discussion and Analysis of Finanelai Condition and Results of Operationw 1992 vs 1991 primarily due to the Company's on-going program to AFUDC decreased in 1992 compared to 1991 primarily refinance and redeem higher-interest long-term debt and due to a decrease in the 1992 AFUCC rate. lower interest rates on bank borrowings. Incorne Taxes Preferred Stock Dividends As discussed further in note 12 of Notcs to Consolidated Preferred stock dividends decreased in both 1993 and 1992 - Fmancial 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 Drst quarter of 1993. Adoption of SFAS No.109 did not have a material effect Liquidity and Capitol flesources upon the Company's results of operations as the Company The Company's capital requirements are primarily for expects to receive recovery for taxes 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 payments are funded from cash 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 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 deferred 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 1991 billion. For 1994 through 1997, the Company expects that income taxes charged to operations and to other income all of its capital needs will be provided through internally decreased in 1992 compared to 1991 primarily due to generated funds. lower pre-tax income and the cost associated with the Construction program expenditures for 1993 were $575 I 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 vs 1992 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-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 l 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 p %r 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 of its nuclear construc-1993 vs 1992 tion program, has improved the Company's financial Interest charges decreased in 1993 compared to 1992 pri-condition. Also contributing to this improvement were the marily due to the Company's on-going 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 i p 1992 vs 1991 of capacity and energy to other utilities. Interest charges decreased in 1992 compared to 1991 Influenced by favorable financial market conditions, the fifteen ~ V. e PECO Energy Company and subsidiary Companies Management's Discussion and Analpis eUinancialt'andition and Resitatiof operations 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 term 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, ofinterest 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 eriergy. chase Plan requirements were satisfied by the purchase of Annual and quarterly operating resu?.ts 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 live impact. For example,1993 camings compared to 1992 will decide whether to issue shares or purchase shares on were favorably impacted by 50.26 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,42.69; preferred stock,6.1%; by $0.35 per share in 1992 compared to 1991 due to one of and long-term debt,51.3%; compared to its capital struc-the coolest summers ever experienced in the Company's ture as of December 31,1992 of common equity,40.34; 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, i 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 results 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. 1 The Company's financial condition and future operating Because of the Company's substantial investment in and i results are in part dependent on the continued successful reliance on its nuclear generating units, any changes in operation of its nuclear generating facilities. The Company's regulations by the Nuclear Regulatory Commission (NRC) ] 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 78% weighted affect the Company. ' average capacity factor and produced 60% of the Company's The Company's budgeted capital expenditures through output. Substantial nuclear generation is the most cost-1997 include all costs of compliance with Phase 1 of the 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 ofits 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 sm een _ ~. - A PECO Energy Campany and S u b sidia r y Co mp a nie s ManagemenFs IMwsmion.and Analpin of Financial Omditie and Reuestas of Operations 4 Pennsylvania utilities which are more dependent on coal. Competition fired generation. The electric utility 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 w here 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 industrial customers. nature and extent of the comamination, 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 Energy Policy Act of 1992 (Energy Act) the Company has accrued $17 and $13 million, respec-encourages competition among utilities and nonutility gen-tively, of study and remediation costs that currently can crators by allowing access to utility transmission facilities i he reasonably estimated. The Company cannot currently for w holesale w heeling. 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 w heeling to allow utilities to recover all legitimate. verifi-sites identified by the Company, environmental agencies able and economic costs for providing wheeling services, or others. including the cost of expanding their transmission facilities SFAS No. I12," Employers' Accounting for Postemploy-to accommodate required transmission access. Retail wheel-ment Benefits," must be adopted by the first quarter of 1994. ing is prohibited under the Energy Act. Retail wheeling 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 the ratemaking process all capital costs and am increased to take advantage of opportunities to expand its customer I operating costs, including those associated with NRC base by marketing its reliable power sources. I regulation of the Company's nuclear generating stations The Company is currently involved in deliberations and environmental compliance and remediation, although before the Maryland Public Service Commission (MdPSC) i such recovery is not assured. and FERC concerning the continued purchase by Cono-wingo Power Company (COPCO), a w holly owned Regulatory Assets subsidiary of the Company, of all ofits power from the 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 2% of the Company's annual revenues. recovery has not yet been approved by the PUC. These llearings on this matter are to commence in September I regulatory assets include 591 million of operating and 1994 and result from a MdPSC order that COPCO per-I 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 50% 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 obtained from a source other tion of SFAS No.106," Employers' Accounting for than the Company. j Postretirement Benefits Other Than Pensions"; and $107 In September 1993, the Board of Directors of the _ j million recognized for the effect on deferred taxes of the Company approved a plan to reorganize the Company's-l change in the statutory federal income tax rate from 34% operations to better enable it to meet the challenges of a l to 35% in 1993. See notes 2,6 and 12, respectively, of competitive environment. The Company's operations will Notes to Consolidated Financial Statements. 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 Gtoup, l 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. sen.nteen PECO Lnergy Company and Subsodiary Companies W2"ImhTIGEDEDRCIEfMMZBlT_GMFlMLUM 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 outhiok for the economy of industry, the Standard & Poor's (S&P) rating agency tight-the Company's service territory and the Northeast in general ened the financial ratio benchmarks it uses to rate electric contributed to this characterization. utility company 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-Although the Company's current debt ratings have been ment could, over the next three to five years, lead to bond affinned by S&P, the Company's outlook, 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- " 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 j S&P determined the Company's business position to be 3 of Notes to Consolidated Financial Statements. i "below average" because it is considered to be a high-cost 1 l 1 $NiSH4t#isEibileiOidi!bilitiGin 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 statements of income, cash 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 whether the financial statements are free of material misstate-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 made 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. 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 A Philadelphia, Pennsylvania Y January 31,1994 ecreen - =. ~. .A-' PECO; Energy Company and S u b sidia r y Co m p a nie s 4 'nsreutidsled Statesnests, ad lacome For the Years Ended December 31, . (Thousands ojDollars) Operating Revenues 199.1 1992 1991 Electric $ 3,605,425 l. $ 3.597,141 _ $ 3,662,573 Gas 382,704 j 365,328 356,013 i Total Operating Revenues 3,988.129 3.962,469 4,018.586 . Operating Empenses I Fuel and Energy Interchange 659,580 709.115 778.674 . Other Operating 851,254 906,346 842,375 Maintenance 364,409 l 353,502 ! 332,269 Depreciation 424,952 l 413,779 400,572 ' income Taxes 354,391 264,483-308,945 Other Taxes 298.132 281,868 274,561 Total Operating Expenses 2,952,7I8 2,929,093 2,937,396 i i Operating incorne 1,035,4 1.033 _ 1,081,190 Other income and Deductions Allowance for Other Funds Used During Construction 11,885 10.461 10,619 Settlement of Peach Bottom Litigation (103.078) income Taxes (I1,808) 40,160 (16,442) Other, Net 11,980 3,392 28,696 Total Other income and Deductions 12,057 (49,065) 22.873 I locome Before interest Chorges 1,047,468 984,31l' 1,104,063 i interest Charges - Long-Tenn Debt 432,707 484,153, 545,488 i Short-Term Debt 36,002 31,419 ' '36,360 Totalinterest Chorges 468,709 515,572 581,848 Allowance for Borrowed Funds Used During Construction (11,889) (10,202) (12,465) Net interest Chorges 456,820 505,370 1569,383 ( Net income 590,648 478,941 534,680 i l Preferred Stock Dividends 49,058 60,731 66.104 t l. Earnings Applica'ble to Common Stock 541,590, $ 418.210 468,576 4 l - Average Shares of Common Stock Outstanding (Thousands) 221,072 220.245 218.234 Earnings Per Average Common Share (Dollars) 1.45 1.90 2,15 Dividends Per Common Shore (Dollars) 1.43 j $ 1.325 1,225 i j 5er Notes to Conwhdated [ manna! Scarements.- f l nineteen l' s 1 i =. PECO Energy Company and subsidiary Co mp a nie s e Assets December 31, s (Thousands ofDollarsI 1993 ^1992 Utility Plant, at Origmal Cost l Electric $ 13,102,088 $ 12.797.389 l 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 10,202,235 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 Total current Anets '514.834 549,965 Deferred Debits 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; rosor SA032,327 $ 12.578,227 i See Noses to ConwhdarrJ Fmancial $satements. 1 1 I twenty i ...,.N ,n_- 5, u a,, . _. - -.. ~ ) i l 2 PECO Enersy C ompa ny-a n J $ a bsidia ry Componlei t on.ohdated liatam e sheets j k -r Capitalisation and Llobilities Darmher 31, - (Thousands of Dollars) 1993 1992. Capitalisation l Common Shareholders' Equity Common Stock $ 3,488,477 $ 13,459,131 Other Paid-In Capital - 1,214 1,214 -[ Retained Earnings 773,727 561,824 4,263,418 4,022,169 j Preferred and Preference Stock i Without Mandatory Redemption 422,472 ~ 422,472 With Mandatory Redemption 186,500 231,130' Long-Term Debt 4,884,343 5,201 961- 'l Totai capitalisation 9,756,733 9,879,732 I Current Llobilities Notes Payable, Bank i19,350 110,500 l 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 Liabilities 954,577' 830,560 Deferred Credits and Other Liabilities Capital Lease Obligations 134,202 '150,996 ' Deferred IncomeTaxes 3,386,136 1,001,939 l Unamortized Investment Tax Credits 386,162 302,508 l Pension Obligation for Early Retirement Plan 135.286 141,675 l = Non-Pension Postretirement Benefits Obligation 51,781 1 Other 227,450 270,817 - Total Deferred Credits and Other Llobilities 4,321,017 1,867,935 Cornmitments and Contingencies (Notes 2 and 3) l Totei $ 15,032,3_27_ $ 12J578,.227 li i See Notes to Conwhdated Fonancial Statemenn. l l i t-I' + f 1 .~ l -. l l twentyone ( P E C o li n e r g y Campany and S u b sidia r y Ca m p a nie s Comentidated Stateenents of Cash flows "? IThousands of Dollars > Cash flows from Operating Activities 1993 1992 1991 Net Income 590,648 478,941 5 534,680 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 77,836 142,267 96,705 Unrecovered Phase-In Plan Revenue Deferred Energy Costs (24,308) 52,959 16,593 Sale of Accounts Receivable 125,000 Amortization of Leased Property 58,400 54.600 59,400 Changes in Working Carital: Accounts Receis abic 31,102 82,151 (70,907) Inventories 11,222 1,395 (26,926) Accounts Payable 777 (47,403) 36,326 Other Current Assets and Liabilities 134A94) (136.627) 54,633 Otheritems Affecting Operations (18,287L (28,569) 20.073 Net Cash Flows Provided by Operating Activities 1,261,775 1,172,843 1.423,088 Cash Hows From Investing Activities investment in Plant (568,076) (571,829) (473,448) Increase in Other Investments (16,214)J (32,769) (43,827) Net Cash Flows Used by hvesting Activities (584.290) (604,598)- (517,275) Cash Daws from nnoncing Activtties Change in Short-Term Debt 8,850 110,500 (68,500) i 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 L(mg-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 tI,114) (16,607) 8,575 Expenses of Issuing Long-Term Debt and Preferred Stock (24,820) (11,660) (68) Capital Lease Payments (58,400). (54.600) (59,400) Net Cash Flows from Financing Activities (680,931) (614,937) (874,875) i (Decrease) Increase in Cash and Cash Equivalents (3,446) (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, 5 50,369 5 97,061 g See %:es to Conwhdated hnam ial Starrments. twenty-two PECO Eroergy Company and Subsidiary C o at p a n i e s E Other Common Stock Paid-In Retained Preferred Stock (Atl amounis in r/musands/ Shares Amnunt Capital Eamings Shares Amount Balance, January 1,1991 216,953 $3,380.213 1,214 $ 243,106 7.534 $ 753,394 ' 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 Activity (68) Issuance of Stock Dividend Reinvestment and Stock Purchase Plan 2,925 63,207 1,ong-Tenn Incentive Plan 152 3,246 Redemptions j_ (153) (15,330) Balance, December 31,1991 220,030 3,446,666 1,214 444,399 7,381 738,064 Net income 478,941 Cash Dividends Declared j Preferred Stock (at specified annual rates) (58,021) 't Common Stock ($1,325 per share) (291,835) Expenses of Capital Stock Activity (11,660) Issuance of Stock Long-Tenn incentive Plan .504 12,465 ' Issuances 1.400 140,000 Redemptions (2,245) (224,462) Balance, December 31,1992 220,534 3,459,131 1,214 561,824 6,536 653,602 Net income 590,648 Cash Dinidends Declared Preferred Stock (at specified annual rates) (49,919) l Common Stock ($1.43 per share) (316,162) ' hpenses of Capital Stock Actisity (5,625) i Issuance of Stock I.ong Term Incentise Plan 982 29,346 (7,039) Issuances 1,427 142,700 t ' Redemptions (1,873) (187,330) ' Dalance, December 31,1993 -221,516 53,488,477 1,214 5 773,727 6,090 $ 608,972 _.J 3rr Notes to Cumsoludated i maw sal Siatements. twenty-three l PEcoEnergy Company and Subsidiary Companies Naten its Cessnestidated Haanttial Ntatementh

s. signiFcont Accounting Policies Peach Bottom Atomic Power Station (Peach Bottom) and ceneral 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 occommissioning 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 provisions 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-1 commissioning nuclear generating stations currently is nennues 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 row, 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," w hich requires an asset and liability ap-by the PUC as part of the settlement of all appeals arising proach for financial accounting and reporting ofincome from the Limerick Generating Station tLimerick) Unit taxes. In addition, the effects of the Alternative Minimum i No. 2 rate proceeding to permit recovery of tFe 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. ruel and Energy Cost Adjustment Clauses The Company's classes of service are subject to fuel ad-Arrowance for runds used ouring Construction (ArvoC) 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 Chrrges 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 tax deductible. the Company's system nuclear capacity factor exceeds or falls below a specified range (see note 2). Nuclear Outage Costs incremental nuclear maintenance and refueling outage ' Nuclear ruel 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 t~enw=r PECO 3nrray Cemrany and Suhsidiary Cempanies (htstes to t tsetimsHdated Haastrial %tatettients expense for the outage are recorded w hen 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, with any excess aceming capaonnd softwore costs to customers. Beginning in 1995, in addition to retaining the Software projects which exceed 55 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 th' 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. Suen capitalized amounts are amortized ratably recorded as revenue net of fuel costs $38, $34 and $25 mil-over the expected lives of the projects when they become lion, respectively, as a result of the sale of the 399 mW of operational, not to exceed 10 years. capacity and/or associated energy. As a part of the settlement, the Company agreed not to Gains and tosses on neocquired Debt file an electric base-rate increase before April 1,1994, Gains and losses on reacquired debt are deferred and except as allowed by the PUC or for emergency or single-amortized to interest expense over the period approved for issue rate filings to recover costs associated with new legis-ratemaking purposes. lation or regulations. SFAS No. II2 Single-issae Dectric Bose-Rate increase filed SFAS No. I12," Employers' Accounting for Postemploy-On September 11,1992, the Company filed with the PUC ment Benefits " must be adopted by the first quarter of a request for a 1.5% electric base-rate increase designed to 1994. The Company cannot currently determine the effect recover the increased costs associated with the implemen. of this statement upon the results of operations. tation of SFAS No.106," Employers' Accounting for Post-retirement Benefits Other Than Pensions." See notes 4 l Reclon$ cottons 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. Rote Matters in approximately five years and to allow the recovery in timeric6 Unit No. 2 Dectric Rote Order base rates of all deferred amounts in approximately 20 years As part of the April 19,1990 PUC order, 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."

costs representing carrying charges and depreciation asso-On September 2,1993, the PUC issued an order deny-ciated with 50% of Limerick 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 Lirnerick 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 rates for these previously been deferred pursuant to a Declaratory Order costs before April I,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 retum 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 30,1993, 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 settlement provides for the Company to snare 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 ncm-pension the energy savings. Through 1994, the Company's potential postretirement benefits costs resulting from the adoption of t.ew he } l i a PFCo' Energy Company and S a ks e dia ry Companies Noten to Casteolidated I'Iftsac&al Statemeretts i SFAS No.106 through the ratemaking process. While non-The Company's operations have in the past and may in l 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-timerick una No. 2 Dettoratory order making process, although such recovery is not assured. Pursuant to a Declaratory Order of the PUC, the Company deferred the operating and maintenance expenses, depre-Nuclear fasurance 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 i facilities during the period from January 8,1990, the com-for claims that could arise from an incident involving any mercial operation date of Limerick Unit No. 2, until April licensed nuclear facility in the nation. The limit is subject - 20,1990, the effective date of the Limerick Unit No. 2 rate to increase to reflect the effects of inflation and changes in order. At December 31,1993 and 1992, such costs ircluded the number oflicensed reactors. All utilities with nuclear in Defe:Ted Limerick Costs totalled $91 million. R4.:overy generating units, including the Company, have obtained l 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-i 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 tocrgy cos Adjunment 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 performance standard which allows legal costs exceeds the basic assessment, for financial bonuses or penalties depending 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 the capacity factor is within the range of 60-70%, there is impose funher revenue-raising measures on the nuclear 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 camed 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%,719 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 $$ million, respectively. facilities. Although it is not possible to determine the total amount of the loss that may result from an occurrence at J. comme ments and contingencJes these facilities, the Company maintains its $2.75 billion - conurucuan E9endnures proportionate share for each station. Under the temis 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 ofits capital needs will be insured by the insurance companies. The Company is self-provided through internally generated funds. These con-insured to the extent that any losses may exceed the struction expenditure estimates are reviewed and revised amount of insurance maintained. Any such losses, if not periodically to reflect changes in economic conditions, re-recovered through the ratemaking process, 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-require permits and licenses which the Company has no ance company w hich provides replacement power cost assurance will be granted, insurance in the event of a major outage at a nuclear raemy sa FFC0 Fneegy Campany and 5uhsidiary C e m p a nic s station. The premium for this coverage is subject to an liability and a related regulatory asset, which at December assessment for adverse loss experience. The Company's 31,1993 and 1992 was $69 and $96 million, respectively. maximum share of any assessment is $17 million per year. The Company is currently recovering in rates costs for i nuclear decommissioning and decontamination and spent mercar occommissioning and spent ruel storage 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-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 $643 million expressed in 1990 dol-recovery is not assured, lars, which the Company believes would be substantially unchanged at December 31,1993. Enwonmental issues i Under a contract with the U.S. Department of Energy Under federal and state environmental laws, the Company (DOE), the DOE is obligated ultimately to take possession is generally liable for the costs of remediating environ-of all spent nutlear fuel generated by the Company's mental contamination of property now or formerly owned 3 nuclear units for long-term storage by no later than 1998. by the Company and of property contaminated by hazard- [ The contract currently requires that a spent fuel disposal ous waste generated by the Company. The Company owns fee of one mill ($.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 w hich 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 of its seeking new data about the suitability of the been deposited and may be subject to additional proceed-i proposed storage facility site at Yucca Mountain, Nevada, ings in the future. An evaluation of Company sites for opposition to this h> cation 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 i DOE stated that it would seek legislation from Congress plant activities may have resulted in site contamination. l 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 f soon thereafter. Although progress is being made at Yucca performing detailed evaluations at certain of these sites 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 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 from ation costs that currently can be reasonably estimated. The the units through the late 1990's and, by further modifying Company cannot currently predict w hether it will incur spent fuel storage f acilities, capacity could be provided other significant liabilities for additional investigation and until approximately 2010. Salem has spent iuel 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-w hether 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) l provides, among other things, that utilities with nuclear other titiration reactors must pay for the decommissioning and decontami-On April 11,1991,33 fonner employees of the Company nation of the DOE nuclear feel enrichment facilities. The filed an amended class action suit against the Company in i total costs are estimated to be $150 million per ycar for the United States District Court for the Eastern District of l 15 years, of w hich the Company's share was estimated at Pennsylvania lEastern District Court) on behalf of ap-December 31,1992 to be $6 million per year, subsequently proximately 141 persons who retired from the Company revised to 55 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 { m sw l ~.. - I L PECU Energy Company and Subsidiary Companies s % Irs to ( hnwinf aled l inancial %latt nwnts t 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. l plaintif fs 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-l 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 l seek approximately $20 million in damages representing, Company's financial condition; h6 wever, they could have ~ i 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 Accour ting adverse effect on the Company's financial condition.

Effective January 1,1993, the Company adopted SFAS i On May 2,1991,37 former employees of the Company No.106 " Employers' Accounting for Postretirement Ben-l 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 I,1987 amendment to the SAP. 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 SAP was planned to increase No.106 resuhed 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 impac: 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 53 million or $0.02 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 Report 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. Retuernen senepu whether such legal action is in the best L'terest 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, attomeys on behalf of two sharehold-ees.The benefits are based primarily upon employees' ers reinstituted a shareholder derivative action against years of service and average earnings 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 lively, and the remainder, associated with construction Collections section of the May 1991 PUC Management labor, to the cost of new utility plant. Audit Report prepared by Ernst & Young. The plaintiffs seek, among other things, an unspecified amount of dam-twentrept ( s' PECO Energy Cempany a n d 5 a b sidia r y Cempantes i Nutts tu ( uswdidated Haancial Ntatements Pension costs for 1993.1992 and 1991 included the (Thousand, ofDollars; 1993 1992 following components: Actuarial present value of accumulated plan (Thousands of Dollard 1993 1992 1991 benefit obligations: ~ k Service cost-benefits Vested benefit obligations $(1,482,868) $(l.315.292) camed during Accumulated benefit the period 5 33,673 $ 30,191 $ 23,692 obligation (1.600,768) (l 410,777) Interest cost on Projected benefit obligation projected benefit for services rendered i obligations 134,658 129,000 121,826 to date $(1,972,332) $(1,740,013) . Actual retum on Plan assets at fair value 1,844,281 1,709.802 j plan assets (226,240) (122,869) (345.677) Funded status 0 28,051) (30.211) Amortization of Unrecognized transition transition asset (4,538) (4.539) ' (4.539) asset (53,865) (58,402) Amortization and l Unrecognized prior service deferral 87.733 l (5,741) 227.038 costs 95,728 101,955 25.286 f $ 26.042_ Net pension cost 5 $ 22,340 Unrecognized net gain (77.245) (183,820) Pension liability $ (163,433) $ (170,478) I The changes in net periodic pension costs in 1993,199' and 1991 were as follows: i

6. Non-Pension Postretirement Benefits l

. (Thousands ufDollard 1993 1992 199/ The Company provides certain health care and life insur-Change in number, char _ j ance benefits for retired employees. Company employees acteristics and salary l will become eligible for these benefits if they retire from levels of partici-the Company with ten years of service. These benefits and pants and net similar benefits for active employees are provided by an j j actuarial gain (756) $ (840) $ 3,402 insurance company w hose piemiums are based upon the 3 Change in plan benefits paid during the year. In the past, the Compar.y has [ provisions 1,978 recognized the cost of providing these benefits by charging j Change in actuarial the annual insurance premiums to expense. I assumptions 4,542 4,754 The transition obligation resulting from the adoption of [

  • " " * ' """ 'Y I' Net change (756)

$ 3,702 $10,134 which represents the previously unrecognized accumulated non-pension postretirement benefit obligation. The transi-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 irstru-over an allowed 20-year period. The annual accrual for ments. In determining pension costs, the assumed long-non-pension postretirement benefits costs (including amar-l l term rate of return on assets was 9.50% for 1993,1992 tization of the transition obligation) is $83 million. The. l. 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, 1 ing the actuarial present value of the projected benefit were $31 million in 1993. On September 11,1992, the l obligation was 7% at December 31,1993 and 7.75% at Company filed with the PUC a request for a 1.5% electric j 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). t December 31,1993 and ranged from 4.5% to 6.5% at - The transition obligation was determined by applica-j 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 l 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 l k wem - i r y' + .mp 4 .a.i -. mw 1 f PECO Energy Company and S u b sidia ry Co m p a nie s a Nates to t oesol'idated Financial Statements i l would increase the accumulated postretirement benefit this agreement. The Company retains the servicing respon-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 receivables. At December 31, retirees during 1993,1992 and 1991 and for 9,723 active 1993, $43 million of deferred Limerick costs were in-i 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 scock following components:

At December 31,1993 and 1992, common stock without trhousands of ponarsi par value consisted of 500,000,000 shares authorized and Service cost - benefits earned during the period $15,615 221,516.299 arid 220,534,048 shares outstanding, respec-interest cost on projected benefit obligations 41,708 lively. 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 Amortization and deferral -J (LTIP) for certain full-time salaried employees of the l ? Net periodic postretirement benefits costs $82,574 ! Company. The types of long-term incentive awards which _m 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. I I summarized as follows: Pursuant to the LTIP, 1,961,882 shares of stock were (Thousands of Donard 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 I i Other active plan participants 79,808 199.1 1992 199/ 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) (504,411) (151,996) Unrecognized transition obligation (479,778) Options cancelled (36,2001 (86.0001 _{336,935) i Unrecognized net gain (63,675) Balance at Accrued postretirement benefits cost December 31 1,961,882 2,445 833 L656 24 a 1 recognized on the balance sheet $ 51,781 ~ Exercisable at December 31 1,447,282 1,162.833 800,744 Measurement of the accumulated postretirement benefits j obligation was based on a 7.25% assumed discount rate. l Options were exercised at average option prices of

7. Accounts neceivem

$22.66 per share, $24.73 per share and $21.35 per share in l Accc*mts 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, j lion, respectively. Accounts receivable at December 31, $23.18 per share and $20.34 per share at December 31, i 1993 and 1992 were net of an allowance for uncollectible 1993,1992 and 1991, respectively, accounts of $15 and $18 million,respectively, The Company is party to an agreement with a financial l institution whereby it can sell on a daily basis and with i limited recourse an undivided interest in up to $325 mil-5 lion of designated accounts receivable until January 24, j 1996. At December 31,1993 and 1992, the Company had sold a $325 million interest in accounts receivable under u, ).] P I: C o Energy Company and S a lIs i d i a r y Companies holes le ( onwlidated Iinancial Ntatements

9. Preferred and Preference Stock At December 31,1993 and 1992 Series Preference Stock consisted of 100,000,000 shares authorized, of which no shares were outstanding. At December 31,1993 and 1992, cumulative Preferred Stock, no par value, consisted of 15,000,000 shares authorized Current Shares Amount Redemption outstanding (Thousands ofDollars)

Price (a) 1993 1992 1993 1992 Series (without mandatory redemption) $10.75 500.000 $ 50,000 t1 $7.85 101.00 500.000 500,000 $ 50,000 50,000 $7.80 101.00 750.000 750,000 75,000 75,(XX) $7.75 101.00 200,000 200,000 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 27,472 $4.30 102.00 150,000 150,000 15,000 15,000 $3.80 106.fX) 300,000 300,000 30,000 30,000 $7.96(h) (c) 1,400,000 1,400,000 140,000 140,000 $7.48 (d) 500,000 50,000 l 4,224,720 4,224,720 422,472 422,472 Series (with mandatory redemption) (e) - $9.875 102.50 390,000 650,000 39,000 65,000 $9.52 200,0(X) 20,000 $9.501986 Series 675,000 67,500 $8.751978 Series 200,200 20.030 $7.325 101.46 300,000 330,000 30,000 33,000 i l $7.00 101.00 24N,000 256,000 24,800 25,600 l $6.I2 (f) 927,000 92,700 [ 1,865,000 2,311,300 186.500 231,130 Total Preferred Stock 6.089.720 6.536,020 $608,972 $653,602 i I i (a) 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. (h) 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 j founh of a share of preferred stock. $3,800,000 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-l l demption prior to October 1,1997. demption prior to August 1,1999, l i I l I tht!T -One V 1 l 1 1 l PECO Energy _ Company and.. Snbsidiar_y C o mp a nie s e %en in 4 imsohdated F inancial statements 1 l I '1

10. Long-Terrn Debt

) (Thousands ofDollars) 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 i 9% 1995 - 51,200 I 81/4% 1996 80.000 61/8% 1997 75,000 75,000 5 3/8% -10% 1998 225,000 250,000 1 5 5/8 % - 11 % 1999-2003 - 1,635,069 1,255.200 6 % - 10 1/4 % 2004-2008 131,875 384,437 (b) 2009-2013 154,200 8 7/8 % - 11 % 2014 2018 129,900 479,900 65/8%-101/2% 2019-2024 1,776,561 1,207.130 Total First and Refunding Mongage 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 (c) 1997-2025 65,565 173,700 Debentures 10.05 % - 11 % 1993-2.011 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 Unamortized Debt Discount and Premium, Net (41,114) (28,958) -1 Total Long-Term Debt 5,136,606 5,302,959 Due Within One Year (g) 252,263 98,998 'I Long-Term Debt included in Capitalization (h) ] $ 4,884,343 $ 5,203,961 (a) Utility Plant is subject to the lien of the Company's involving yields on several types of debt instruments. There j mortgage. is an annual commitment fee of 0.15% on the unused amount. (h) Floating rates, which were an average annual interest The average annual interest rate for this revolving credit i rate of 2.40% at December 31,1993. agreement was 3.64% at December 31,1993. The Company i (c) The Company has entered into interest rate swap agree-also has a $150 million revolving credit and temi 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 annualinterest banks, which are counterparties to the interest rate swaps. rate of 2.24% at December 31,1993. Ilowever, the Company does not anticipate nonperfor-(f) Medium-tenn 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 p ~ term loan agreement with a group of banks. The revolving follows: 1995-$201,213,000; 1996-$393,463,000; 1997-credit arrangement converts into a ter.o loan ca October 3, $266,463,000; 1998-$241,463,000. 1994. The borrowings are due in six semi-ann ur' hstall-(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-l' is based on specific formulas selected by the Company ciated with other long-tenn debt. thety4wo l PECO Energy C o m p a n'y and Snbsidiary Co mpa nie s Notes in ( emwlidated } inannal Statements ~ i t iI, short-Terrn Debt (Thousands ofDollars) 1993 1992 1991 Average Borrowings 113,193 50,161 13,493 l - Average Interest Rates, Computed on Daily Basis 3,35 % 3.72 % 6.17 % I - Maximum Barrowings Outstanding 368,400 255,500 81,0(X) Average Interest Rates at December 31 3.45 % 3.72 % At December 31,1993, the Company had formal and informal lines of credit with banks aggregating' $351 million against which $119 million of short-term debt wa, outstanding. The Company does not have formal compensating balance arrange-i ments with these baniss. The Company has a $150 million commercial paper program and at December 31,1993, there was no commercial paper outstanding. I2. Income Tases (Thousands of Dollars > I993 1992 1991 [ Included in Operating Income: I Federal 7 Current 117.535 131,054 120,M6 Deferred i13,054 66,281 67,914 j Investment Tax Credit, Net ' 43,344 (3,495) 58,078 State Current 70,740 78,546 71,516 i Deferred 9,718 ,[7,903) (9.209). 354.391 264,483 308,945 ~ ' Included in Other income and Deductions: Federal s 1,957) l Current (3,650) (45,295) ( Deferred 15,926 20,237. 16,483 { State Current (1,615) (18,430) (732) i Deferred 1,147 3,328 2,648 l 11,808 (40,160) 16,442 l l . Total-366,199 224,323 325,387 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 liability and pursuant to SFAS No. 71," Account-associated with the elimination of the net-of-tax AFUDC ing for the Effects of Certain Types of Regulation," a accounting methodology. i - corresponding recoverable deferred income tax asset of 1 i e i I I umree ~. ~-- PECO Energy Company and-Subsidiary C o m p a nie s 't Notes to ('emsolidated Hnandal Ntatements The $2.3 billion accumulated net defened income tax credits generated from 1988 through 1992 have not been liability reflects the tax effect of anticipated revenues and utilized due to limitations based on taxable income. These reverses 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 Revenue 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 retums are currently under examination. the PUC based on flow-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 $60,541 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 when regular tax liability Reform Act of 1986,ITC was repealed effective January exceeds AMTliability. I,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 (Millions of Dollars) Liability Nature of Temporary Difference: "I f AM'I 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 panly 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, i changed the federal income tax rate for corporations to because the Company expects to receive recovery of all 35% from 34E effective January 1,1993. This change taxes when paid. resulted in an $8 million increase in income Taxes in the thwty f;)ut l l + .. ~. 'l 'PECO. Energy C o m p a n y' ' a n d S u b s i d d e r y Companies ') Ndes to I'onsoledated Finanaal Ntatements Provisions for deferred income taxes consist of the tax effects of the following timing differences: ITiwusands of Dullarsi 1993 1992 1991 Depreciation and Amortization 78,324 5 93,469 89,760 Deferred Energy Costs 19.013 (18.033) (19,916) Early Retirement Plan 1,865 16,024 Incremental Nuclear Maintenance and Refueling Outage Costs (827) (1,627) (5,629) Uncollectible Accounts. 625 (2,629) (7,750) Reacquired Debt 28,959 39,123 18,688 Unrecovered Revenue (806) (56,050) (.43,983) Alternative Minimum Tax 6,331 Limerick Plant Disallowances and Phase-In Plan 17,073 15,118 16,634 Other (2.516) 10,707 7,677 j Total 139,845 81,943 77,836 .j The total income tax provisions differed from amounts computed by applying the federal statutory tax rate to income and c adjusted income before income taxes as shown below: (Thousands of Dollars) 1993 199: 1V91 ' Net income 590,648 478,941 534,680 Totallncome Tax Provisions 366,199 224,323 325,387 l Income Before income Taxes 956,847 703,264 860,067 -l Deduct: Allowance for Funds Used During Construction 23,774 20,663 23,084 Adjusted income Before income Tames S 933,073 682,601_ 836,983 income Taxes on Above at Federal Statutory Rate of 35% in 1993 and 34% in 1992 and 1991 326,576 232,084 284,574 j Increase (Decrease) due to: t Depreciation Timing Differences Not Normalized 9,721 10,427 15,258 Limerick Plant Disallowances and Phase-In Plan 5.094 2,159 3,490 - Unbilled Revenues Not Normalized (5,766) 5,620 i State income Taxes. Net of Federal Income Tax Benefits 51,994 36,657 42,387 Amortization of Investment Tax Credits (13,470) ' (24.624)' (17,030) Prior Period Income Taxes (3,942) (20,655) (13,227) Other, Net (9.774) (5,9591 4,315 Torollacome Tan provmons 366,199 224,323 325,387 i F t Provisions for Income Taxes as a Percent of-income Before income Taxes 38.3 % 31.9 % ' 37.8% ' Adjusted Income Before Income Taxes 39,2 % 32.9 % 38.9 %

13. Tames Other Than income - Operating

^ Thouwnds of Dollars) 1993 IV92 199) ( Gross Receipts 155,407 158,314 158,719 j Capital Stock 38,990 28,013 34,924 Real Estate 71,445 63.593 43,023 .f

Payroll '

31,490 29,410 31,439 .j Other 800 2,538 6,456 Total 298,132 281,868 5 274,561 j ? I thif'y-five i I n ~- f PECo Energy Company a n d' 5 u b sidia ry Co m pa nie s ; %tes to (imsohdated Finamdal Ntatements s N-l I4. Leases Leased property included in Utility Plant at December 31, was as follows: l 'i ' (Thousands of Dollarsi IV91 I992 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, (Thousands 01 Dollarst _ Capital Leases Operating Leases Total 1994 70,413 97,982 168,395' 1995 65,988 96,821 162,809 f 1996 59,273 60,501, -119,774 'I 1997 18,220 59,538 77,758 -l998 92 55,861 55,953 l Remaining Years ll8L 616,834 618,015 Total Minimum Future Lease Payments 5 215,167 987,537 $ 1,202,704 ~ Imputed Interest (rates ranging from 6.5% to 17.0%) (20,465) Present Value of Net Minimum Future Lease Payments 194,702 Rental expense under operating leases totalled $99, $94 and $89 million in 1993,1992 and 1991, respectively.

15. Jointly Owned Liectric Utility Plant

.l The Company's ownership interests in jointly owned electric utility plant at December 31,1993 were as follows: Transmission and Production Plants Other Plant Peach Bottom Salem Keystone . Conemaugh l Operator PECO Public Service Pennsylvania Pennsylvania. j Energy Electric and Electric Electric Various. l Company Gas Company Comp,any Company Companies } Participating Interest 42.49 % 42.59 % 20.99 % 20.72 % 21% to 43%. t Company's share of (Thousands of Do11arsa

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 settlernent, the Company paid $131 million to the other co-owners on October 1,1992 and the i thirty-sm

  • e e

5 4 PECoknergy Company and S u b sidia r y Compantes Notes serensutidated Financial Statesments 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' htigation. As a result of the settlement of the co-owners' litigation, the $28 million was recognized as other income in the first quarter of 1992 and reported as an offset against the amount of the above-men-tioned charge relating to the settlement of the co-owners' litigation. I6. Segment Information (Thousands of Dollars a 1493 1992 1991 Electric Operations Operating Revenues -$ 3,605,425 i 5 3.597,141 l $ 3,662,573 j i Operating Expenses, excluding Depreciation 2,228,507 2.236,907 i 2,253,159 l Depreciation 400,851 390.846 { 379,607 ! Operating income 976.067 l $ 969,388 j $ 1.029.807 j Utility Plant Additions 458,125 l 5 461.407 i $ 422,780 ; -- - _ b d Gas Operations f Operating Revenues 382,70._4,: 365,328 l 5 356,013 ' 1 Operating Expenses. excluding Depreciation 299,259 ' 278.407 l 283,665 l Depreciation 24,101 22,933j 20.065j Operating income 59,344 5 63,988 ! $ 51,383 i Utihty Plant Additions 72,481 5 74,858 5 55,098 i identifiable Assets

  • i-Electric

$ 10,395,488 5 10.393,449 $ 10.213,296 i Gas 727,690 658,825 590,151 l Nonallocable Assets _ _3,909,149 1,525,953 1,720.013 1 q q Total Assets $ 15.032,327 $ 12.578,227 ' $ 12,523.460 =====d' md

  • Includes Utility Plant less accumulated depreciation, inventories and allocated common utility property,
11. Cash and Cash Equivalents 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 equisalents. The following disclosures supplement the accompanying Statements of Cash Flows:

(Thousands of DollarsI i993 1992 1991 Cash Paid During the Year: l Interest (net of amount capitalized) 474,735 l $ 515,696 551,944 income taxes (net of refunds) 182,751 l 224.352 193,340 Noncash Investing and Financing: Capital lease obligations incurred 42,484 1 40,757 ' 41,905 th w seven i PECO Energy Company a n d S u bsidia ry C o m p 'a n i e s %: tem to ( onsolidated Finaarial Natenernts I8. Investments (Thousands of Dollarsi December 31; 1993 1992 l Trusts and Escrow Deposits for Decommissioning Nuclear Plants 149,932 5 125,703 Real Estate Developments and Other Ventures 46,741 48,273 Nonutility Property 21,262 23,141 Gas Exploration and Development Joint Ventures - 625 5,026 Other Deposits 76 279 Total 218,636 202,422 J

19. Financial 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 I values of the Company's financial instruments as of December 31.1993 and 1992 were as follows: 1993' 1992 Carrying Fair Carrying Fair (ThousandwfDollaisi Amount Value Amount Value Cash and Temporary Cash investments $ 46,923 l $ 46,923 $ 50,369 5 = 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 i 149,932 160.141 125,703, 131,138 Financial instruments which 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 I 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 546 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 thiny-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 $70 million over the next 12 to 15 years due to reduced the Company had received 18 shipments of the nuclear fuel. fuel-purchase requirements. The payments from LIPA,in excess of related costs, are thaty erght I 4 l PECO Energy C o m p a n y ~a n d Subsidiary Companies Nutr$ In Conwisdated Financial Ntatements 6 - 21. Quarterly Data (Unaudited) The data shown below include all adjustments w hich the Company considers necessary for a fair presentation of such ( . amounts: Operatgg Revenues Operating income Net income (7/musumis of thstars) 1993l_. i Quarter Ended 1993 1992 1993 1992 1992 March 31 $1,071,492 $1,079,890 $281,734 $274.580 $162.356 $ 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 31 941,800 983,196 239,544 267,671 138,918 153,877 i J Earnings Applicable Average Shares Eamings (7housumis o/Dqstars) _to Common Stock Outstanding Per Average Share l 1 i Quarter Ended 1993 1992 l 1993 l 1992 1993 1992 March 31 $149,305 $ 72,013 ' 220.609 220,068 50.68 $0.33 June 36 94,540 78,207 220,856 220.170 0.43 0.35 l September 30 169.727 128,754 221,318 220,327' O.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 $0.1 I per share, as a result of the settlement of a result of the settlement of the litigation concerning the the Company's 1984-1986 federal income tax returns. j 1987 shutdown of Peach Bottom (see note 15). i s eUf!f-fhf5f PFCO Energy Company and SubstJiary C o m p a nie s F6mancial Statistics Summary of Earnings and Financial Conchtion Ohl!wn of flatlant For the Year Ended 1993 1992 19VI 1990 1989 1988 Operating Revenues $ 3,988.1 5 3,962.5 ' $ 4.018.6 $ 3,786.7 $ 3,473.8, 5 3,246.3 Operating Income 1,035.4 1,033.4 1,081.2 767.7 809.3 742.6 Income from Continuing Operations 590.6, 478.9 534.7 105.8 590.5 566.0 Net income 590.6 l 478.9, 534.7 214.2 590.5 566.0 Earnings Applicable to Common Stock 541.6 418.2 l 468.6 123.9 493.9 468.8 Earnings Per Average Common Share j From Continuing Operations (Dollars) 2.45 1.90 ; 2.15 0.07 2.36 j 2.33 2.36 l Earnings Per Average Common j Share (Dollars) 2.45 1.90 ; 2.15 l 0.58 2.33 Dividends Per Common Share (Dollars) 1,43 1.325 i 1.225 1.45 2.20 2.20 Common StocL Equity (Per Share) 19.25 j 18.24 17.69 16.71 17.67 17.39 Average Shares of Common Stock i Outstanding (Millions) 221.1 } 220.' ' '18.2 ; 214.4 l 208.9 201,5 As Ikt ember 31 l ? Net Utility Plant, at Original Cost $10,763.0 $10,691.2 $10,598.4 l $10.591.3 $10.720.8 $10,048.5 Leased Property, Net 194.7 210.0, 223.8 l 241.3 273.5 287.5 Total Current Assets 514.8 550.0 l 783.2 { - 745.0 655.0 502.5 Total Deferred Debits and Other Assets _3,559.M_ _ l.127.0 j _ 918.lj _ 938.6 j _972.8_ 953.9 Total Asseis $_l 5,032.3 $12,578.2] $12,523.5j $12,516.2 $12,622.1 $11,792.4 Common Shareholders' Equity $ 4,263.4 $ 4,022.2 l $ 3,892.3 $ 3,624.5 $ 3,744.8 $ 3,592.6 Preferred and Preference Stock l Without Mandatory Redemption 422.5 422.5 l 422.5 i 422.5 622.4 622.4 With Mandatory Redemption 186.5 231.1j 315.6 330.9 351.1 ' 368.1 Long-Term Debt 4,884.3 q 5,203.9.' _ 5,415.6 _ 5,830.8_ 5.762.7 _ S.219.5 Total Capitalization 9.756.7 j 9,879.7 10.046.0 10,208.7 10,481.0 ! 9.802.6 j Total Current i.iabilities 954.6 ! 830.6 823.4 783.8 790.5 662.4 Total Deferred Credits and Other Liabilities 4,321.0 1,867.9 1,654.1 1,523.7 1,350.6 1,327.4 Total Capitalization and 1.iabilities $15,0321._ $12,578.2 $12,523.5_ ; $124_16.2 $ _12,622. l_... _ - __ _ $_I 1,792.4 _ J 'l (04 PECo Energy Company and Subsidiary C o mp a nie s Operating statWirs Electric Operations 199.1 1992 199/ 1990 1989 1988 Output (Milhons of Kilowatthours) Fossil 10,352 8,082 7,376 7,913 10,470 10,225 Nuclear 27,026 24,428 25,735 23,715 12,890 12,328 flydro 1,699 1,803 1,388 2,266 1,743 1,307 Pumped Storage Output 1,478 1,597 1,653 1,437 1,354 1,515 Pumped Storage Input (2,192) (2,217) (2,355) (2,059) (1,937 )- (2,163) Purchase and Interchange 6,447 8.675 8,603 5,787 11,192 11,802 Internal Combustion 56 29 79 152 348 285 ' Other 180 1,063 Total Electric output 44,866 42,397 42,479 39,391 37,123 35.299 Sales (MHlions of Kilowatthours) 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 771 962 1,029 1,010g 1,031 999 Service Territory 33,136 31,993 32,801 32,445 ' 32,675 32,239 Interchange Sales 457 1,231 1,612 2,751 2,027 435 Sales to Other Utilities 8,670 6.699 5.445 1,865 Total Electric Output 42,263 39,923 39,858 37,061 34,702 32,674 Number of Customers, December 3I Residential 1,341,873 1,333,926 1,324,795 1,320,126 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 888 857 840 817 775 779 Total Electric customer 1,488,866 _l.480 008_ _l.470,698_ 1,465,592 1,453.185 1,437,357 Operating Revenues (Mnilions of Dollars) - Residential $ 1,354.1 $ 1,304.5 5 1,342.3 $ 1,229.8 $ 1,157.0 $ 1,127.8 Small Commercial and Industrial 678.9 669.8 641.0 595.2 537.1 489.4 1.arge Commercial and Industrial 1,164.0 1,223.2 1,278.9 1,247,1 1,182.0 1,089.3 Other 161.2 168.0 170.4 166.9_ 143.9 143.8 Service Territory 3,358,2 3,365.5 3,432.6 3,239.0 3,020.0 2,850.3 Interchange Sales 14,3 32.1 42.8 81.5 68.2 17.6 Sales to Other Utilities 232.9 1991 187.2 81.1 Totoi Electric Revenue: $ 3,605,4 5 3,597.1 $ 3,662.6 5 3,401.6 $ 3,088.2 $ 2.867.9 Operating Expenses (Millions of Dollars) Operating Expenses, excluding Depreciation S 2,228.5 $ 2,236.9 $ 2,253.2 $ 2,325.2 5 2,077.4 $ 1,931.3 Depreciation 400.8 390.8 379.6g 337.7 257L 245.5 Total Operating Expenses $ 2.629.3 $ 2.627.7 $ 2.632.8 l $ 2,662.9 $ 2,334.8 $ 2,176.8 Electric operating income 976.1 969.4 $ 1,029.8 738.7 5 753 4 5 691.1 - -1 Average Use per Residential Customer (kilowarthours) Without Electric lleating 6,727 6,259 6,707 6,376 6,488 6,667 With Electric lleating 17,096 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 ofkilowatts) 7,100 6,617 7,096 6,755 6,467 6,826 Net Electric Generating Capacity - Year End Summer Rating (thousands of kilowatts) 8,877 8,836 8,766 8.766 7,759 7,762 Cost of Fuel per Million Btu 0.90 0.82 0.92 I.13 1.37 1.19 Bru per Net Kilowarthour Generated 10,675 10,657 10,849 10,844 10,894 10,881 favne l PEcoEnergy Cnmpany andSuhaidtury Companies Operstl43 StatAMtieh Gas Operations 1993 199 199/ 1990 1989 19M 4 Sales (W,billons of Cubic feet) Residential 1,637 1,819 1,746 1,778 1,951 1,933 llouse lieating 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 l retai cas sales 64,923 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 cas sores a rronsported 83,869 77,272 70,609 76,289 80,667 80,618 l Number of Customers, December 31 l Residential 59,573 59,859 62,444 63,267 65,544 66,599 i llouse lleating 277,500 269.577 260,473 254,564 246,273 239,022 l Commercial and Industrial 31,573 30.956 30,204 29,456 28,369 27,119 1 1 Total cas Customers -368.646., _36. _0,3 _92 .353,121 347,287_ 340,186 : 332,7_4_0_ q Operating Revenues (Millions of Dollars) Residential 15.0 16.4 17.0 18.1 18.0 17.0 llouse lleating 205.5 201.9 192.4 200.8 195.8 180.6 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 6.6 Subtotal $ 359.9 $ 342.2 5 335.2 $ 369.2 $ 373.6 $ 369.3 Other Revenues (including Transported for Customers) 22.8 23.1 20.8 l 15.8 12.1 9.1 Total cas Revenue: $ 382.7 365.3 $ 356.0 $ 385.0 $ 385.7 $ 378.4 Operating Eapenses (Millions of Dollars) Operating Expenses, excluding Depreciation $ 299.3 $ 278.4 $ 283.7 $ 336.2 $ 310.2 $ 308.3 j Depreciation 24.1 22.9 21.0 19.8 19.6 18.6 Total Operating Expenses $ 323.4 $ 301.3 $ 304.7 $ 356.0 $ 329.8 5 326.9 Ces Operating income (Mmions of Dollars) 59.3 $_64.0 51.3_ _$_29.0_ 55.9 $_ 51.5] Securftles 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. BBB+' 4/92 BBB 4/92 BBB-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 4/92 l Standard & Poor's Corporation BBB+ 4/92 BBB 4/92 BBB 4/92 NYSE-Compostte Common Stock Prices, Lornings and Dividends By Quarter (Per Shore) 1993 1992 Fourth Third Second First Fourth Third 5econd First . Quarter _ Quarter _ Quarter Quarter _ Quarter _Q_uarter Quarter _ Quarter. liigh Price $32-7/8 $33-1/2 $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 $25-1/2 $25 $25 $23-5/8 $22-5/8 Close $30-1/4 $32 3/4 $30 5/8 $30 $26-1/8 $26-3/8 $26-3/8 $24-5/8 Earnings 58c 77c 43c 68c 63e 59e 35c 33c Dividends 38c 35c 35c 35v 35e 32.5c 32.5e 32.5c l forty-t*O o ... = l5 g. j P E C' O E n e r g y.C o m p a n y and S u li s i d i a r y Companies j Offiwrs ')

Joseph F. Paquette, Jr. (59).

David R. Helwig (42) William H. Smith, Ill(45) Chairman and Chief Vice President, Limerick Vice President, Planning and i Executive Officer Generating Station Performance Corbin A. McNeill,Jr. (54) Thomas P. Hill, Jr. (45) Albert J. Solecki(53) President and Chief .Vice President and Controller Vice President, Support Services - ~ Operating Officer Kenneth G. Lawrence (46) Alvin J. Weigand (55) - .l Wilflom L Bardeen (55) Vice President, Gas Operations Vice President, Transmission and Senior Vice President, Finance and John M. Madara, fr. (50) Distribution Services Chief Financial Officer Vice President, Production Lucy S Binder (56) James W. Durham (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 l Senior Vice President, Vice President, Peach Bottom Atomic James F. Hohenstein (50) Iluman Resources Power Station Assistant Treasurer -[ . Gwendolyn S. King (53) Morton W. RImerman (64) M. Dorothy Lyons (52) Senior Vice President, Corporate Vice President, Finance and Treasurer Assistant Secretary and Public Affairs Todd D. Cutler (33) Dickinson M. Smith (60) Assistant Secietary i Senior Vice President, Nuclear f Monogement Chenges: b i i 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 ) 1 ~. I fortf three -l .i PECO Energy Company a n d. S u b sidia r y -C o mp a n ie s Susan W. Catherwood(50) Nelson G. Harris (67) Joseph J. McLaughlin* (65) Chainnan, Trustee Board, Chairman of the Executive Comrnittee, Former President and Chief Executive The University of Pennsylvania Tasty Baking Company Officer. Beneficial Mutual Savings Bank flealth System Robert D. Harrison (70) 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, Jr.*(59) Former Senior Vice President-Edithe J. Levit, M.D. (67) Chairman and Chief Executive Finance and Chief Fiiancial President Emeritus and Life Member Officer of the Company Officer of the Company of.he Board, National Board Ronald Rubin *(62) Richard H. Gianton, Esquire (47) of Medical Examiners General Partner. Richard I. Rubin & Co. Partner of the law finn Reed Smith Admiral Kinnaird R. McKee* (64) (Real estate development Shaw & McClay Director Emeritus, U.S. Navy and management) James A. Hagen* (6I) Nuclear Propulsion Chairman. President and Chief Executive Of ficer, Conrail. Inc.

  • Member of Executive Committee forTtfour

.J [q .. j] e 'H5?' 1 " 9 jp$${. t En4 :; ~ ' i { . o y m Ijf ,j ( ge { y }" nmQ&id, y.smp,ewge%y", g ,s%_#,mg x,%y ~~ @w% w p,A p @q$en p@ m,y sgmar a J %We#g m. enapvas gm G g cp Aw l ? d-p- g . - _9_qq _ g _q p q -- ~ _ 3 ~ s .. b '[. g _ds w e; 3 9 -i l g Cop $j))JS Qf g- ~ ljpf eu %M^ h s -_y wpe m i wggg,gg I mrga Appp#p%i Wm@MYNOy b,$

  • U N N

,M b k 1 y mvh& ken #wam M w y1 n m meew+g 1 Ap. wwwau y" e. W M $w e @g e n tn e % wMd i . f4@w,MM. a a q % mdsp u w* @M 39 g* p W b ww*p m % 4 f g g g ~'" C gLeghww%p* e Jek:Wqegr -- 9 - Med !$f %4@ %hQ eq 1 . 2 ~% v QLsgpss4 .f.;f y 66 k'A M3% w g%e y meu

n. ~w
g. a$ yO N

%y%m hS . ' 2 d $ s$ N * * * $5f. 7h Nf.lsasI MQk I d %U ~ 4 WR$ i mau en i, n c w M W@ @m + A p @% m n m Wm 1 37gmBy,ggp. l 4 pF fMN g$ i k ^ eraqp 5ptdyseh p hv l en# an \\ MW ~ d a p!g l ll lp 4 >=gp%waksuw&cx C j l. !M in w W l;; $3M_#y$lN@y g--,~ 2 M' ' _. m M, - g; e, E-g g

f.,y g, Nin?

F e % e yly y y 3 yby4 i ~Rf ' X ' _ Mi' ynfCi d g imm mia i m f -^ f,_

7

} gi M M L g 7 g g g_ A g [ rpt - g g _m y, t ' e u+. g == m we p 4,~ ~we we = g { EdIis#d YE@ifydiffS f _y % efN GWbF#$ f l iC L 7 C - J' j meheem ure J5fsl

l 4

w

r. _#

.m m a %g%pf TE * *"* " { { f,k._- f$$ l

  • ] y

^ - 1 :g g ge 3 7 We o p. 4_

gg JE#4' 9pagpp?#2W JINhif6A,~#gy,M@hjf, L l~

,MJ%s pso E'a R 41 g 7 ~ ' w m m e s a s p e h@9 R R,. -.E # R A $p _R..,y % W D M ffh _h i ~~yr ip e a ~3-h, 9 [( - f;

S rp
y Q

h-Y .,. e y s ~,> e y y } s a W ~ b J g. % _ ly .i-- PFCO Energy Compny i ' l + 1 2Mt Market Street PO Box 8699

Ph2ladelphia.PA 19101

. l i l 1 -l Ii L s i e h - i f f t b i F i 1 1 i 1 l i 1 l '1 i I .j*.;,,.... q. ' ;*' : s

  • [ :, '. i - 7 ',",
. +..; 3

....,,, e .x,. J. ; _, *e.,, _,y . ? :._.

  • ; ;;,' ~
    :. Y,

,\\ - [

    • , +. :.

.. ;..., _,,. ;, c.y -Q. J

l a.' ";..',,,., -...,,, -

e ,s c- -a c .;*., c' '(. i.r '..l, ' : '.. '.L i ' ' r ,.?., r * ] :G '..i...g,.:. .'?

::..)c

- %.!. l..: - .% ; '.:. s*; -., ; o,, . e- '.. lr. s. '.s l,

... > ; "
.., ;, - y '...; ;; n:

n'*;.....,j'_.'~'.- ,,.l.- . q :.. t o. .';., c :;,,; -:,.

. a
,. <. ":,-

p :.. .p q.",,,. ':.:p-:. '- ..v ,..g, y.,. l:,. '.,. 's;:...:'..'.',,,,.. .,, *<q . 'q ', : e,. ',,.. '.....k 1 (..*- : *.,,. :~;...s',;', f'.. ;4,:,f i.(,:-' a'., o.<.. o.-' s.%..',- v: ;<>

. r

.*. :(.. :<,..; ,.:.y,, i s.- c,-,.'.J '.. e. i T..lau..* G. y ss; y ::/..o..h . -' t-.N d ,$..:4..,.....,.., t -: i y? '. -), e x ,r ,- -:- v * :'. - -'M

7
. :.-

ye:,; 4... '. r*-' e ;,r;

...
v. *,,.,: ',, ;.

..'_.,U...'...,..;:*.~::.N,'...".'..;'s.!, ~ ..4.,

a

,e - ;:. e ,..G .; n..,; -,,n,',T.' .q,.,H 't e, s, :..: ',? ..,,...., b l - (,0._ . " y.ls s. : 9,.

  • .'r

.n ,G.*,,*, .< " : ' - :s :,

  • n;;r.

...s., J:' ' : ;,.. o -:'.~? 9 7,* ,, p ','i.,,:: f '.' 5'.',:.?:l, '.... '?; lp. :.y ' ' ~., f. ' '_,,. ..} ,&f. f tf h<$r_,.- -.,> - : *.: g.., n,. '. c.v ;t... s. _..,,, -, ' E \\ b ;',,.5 ^ ;;., :Q.,}n 4;. hk ' ' ' ' ' 't ;.lr :, ' k. !, '.i u 'y *.', ' J)* p'. .;- _ ;. - s v. .... :.. W - 4r .s :.:'. k,.. :.- - ^ e,..., ~ t _..g e .-..,.1 ; :.'..,,n: :'* w... -:M.[,. z, ?:pf..~;';.,'.'...

f'..".~

,^' .,es.....s

. ;,..,. p 7. '.,, ;... _ _* ?,. : ':;,.[.

..,':- :.. 'd .G -' '..,;*. ,:~ r,..

..*
. s.'

5.I,. ,:~ ~ - .e*,~..':* s.,..,' 'p'.,, c.., :.:.,$. ;:'..,.. : ::..,.,',4 .g

" : ~ * -.:.

....}. - . f.. , 1;.......,... ,,,,.'.;'n:.',,.'s,'.,.'..:.e .,t', Y,.'*,2g.... e ts.., .y. ,* 4 ... ; e.*I'.,'.1,. ',... - y.. 1...-,, ".. 5.;,. s .e....,, .,.b.. -},.,L *[. ;,. ... * ~ -1 ? 9 .s*::" ( .c..,', j; -..'i.,',..;.,,': .,; c. .. :s,. A J. if,

  • - *.. ' '. ' 3 < ;,- (..'l.,' ', ',

,u- ,.. c. g..q

  • ,'t'

.j.'. f",.t.'s.',- J '.,,.. <. ' '.. 9,.f.. ;; f.,.., l'.., ; '. j,... r '... - -i. '..,.).) -.,..., ',, '. - .,.,,,.f,,*/'4h,.,.,'.':.'.- i1",. ,'7,a.. .c.c ;,- e.,' - -[ j' : f ; ",. y,$,.,.,,.,* : '- s fa q y ", ; ;,'. ...o. , +,,,...,,.,,,'.'y: a. 3 - y.4,. s 6..,.r,,.p.s., ,- ;..~ ' . :..'..4. ,e

-a 1,.t..,,

r- +

s o

c ..h,,...,...,.-*..,'.",.e. y,.g,....,,,..' 3

4-
.'s g,f.

-,, ', *.-.*.;,.n'. r f s..... / : ...,r,.",.-'.'.e.......: 3 .'...p e.,..'...J.:...I A,... ..*. yy r,:. ' g .,*,.. l:. * *,

  • .. l. :- *..,.. ^ '

': '.lg n - ' ' { t lb.':, '.. .N' .h 9 I l s. o .l t, l = ..:/ _,,, ' l ' i 'l,' n . l. ^ ! : ? -., h ' _, r.i '.'k 'h '.,. .I<-~ f, - ). ' 'U .c ls [,, . i J.; f' l. .N. ' ' _', 1 Q, ) 3.. [ .l '. ...Y,i.. (NN4tMie NNfjpkjMsik$ssu$ynidMsadesida.shnee$ [N. .,,,,H.:. ? 3: W'. ',/ N[ kj O I, '.4~-' sG [ f ^ y,. ~,. ; ...}., '.., f [ ',, '. 'l ,*.'. '.. - j l.! ,t. %C[

  • ' ':. ' h y i, :. f

's. ' ( l l.. _ lv '1 ,;[^,,,.., % ;_'.[. (.,. ,.;.a. m,-.}..,' [ '}s' ;.. <*., :.. _. \\ 5,,. J f. ..{4 ~, /.E ', 7 [.'... N 4,' }. ./ '. =.

  • I..;T. ' '

' '...' Y ' 3 ..l

k'. %..

I

l.. '

? I' O . *'

l. % [ :

N' [. h M f [ t[ h N M.Ne @ M W @-F E } j i 1

j..,.\\

,f., '[' ] f J. , [, '.

,,. 5

,,.. l, e

.l f

I':l 3 ? ,l s 7 :i.gsubheyhpe$t$rdiNdeiadninstWesed WWi4)ss MJ f Minefiddlity%hhdienf Assetsson.N'.Q ' F @,f 9:9 '.': 3 'f ;/ "[ l. -[ .,. { ' l[. '( f ,i,,,.; [, %% % M *Wm9'w wamaniw h @ r4 W Be w?.?:.;. ~

  1. .1 %

m.. I ,.' -' ', '.,.',., [. f' -..., a 3 'm ,J,), 'f [. !j _..., [ (

  • j., -.

.:.,.'s f'. g *. ;. . ~ [.. s.. l,.. (,, L s b l'. .' [.... s _,y. },}. l ;, _,.,;[Q,- Q' ...%.StuOime.s.. ll ' l.:[ f,l,[ f ; _l..f.. s .:.. ;.u . "~ ^ Wl%%gmWpup shopaiWeeamu( nesismianW% MEnasipiuMGaigner.8.6 4. R %.* N },[ '}, [ [ ((. -.' h 4 '. i.. '. l' '. '. ',... f, ^ i.. ; :o ( , [,: l 8 ,' ' '), .h,[,...*a-. j.... 2, s. . i.. .",,n',,-. [ ., i ',. .. i, / *..,,f,.j..<.u..- "' ~-. ....,.. -.......3, w/,, . F,.', ,,.,-]/'..,.,p..',$. n .,(.*g,.,* ..e.,,.,a .. e. .i,"+,c.. f,,,..: e:. ".., ..,,,',.,".....,..,s.,,,. - * ,...;,c..,.'.,,..f y 9 i.-'.. - .......a'.

, 1

<

  • y ; d.,.,,,...- :
..3.

. s.,. , f, p .s O.,.t'i,. ...,.,f. ..:.~.:.". c=,. .t,.,ej...e.i ...i.; t ,,,Y... .h .g. ' E. ' ':E',- -3 ( a,, '. N. ?. ' % ?.

l. : I.

,T l' ...,:m ,\\. h - .Y. ?':,. ',',,,? ' ?. 'hl. : @,,, ) *:. { .k ~,. -.,; ' [.,' [.,. l, ' k... il. Jl. ' ~ "j, '. '[ I '_;,,~ ' ' l [. f ;., l,.:f : _,

l. "

.[, N N ,'_ 'k f ',. '. '.. '.... i,..Y.. ' :?.l . ~;, N '. ' _', A ' h, 4 ', ( f }I 0 ;. '. 'k'

. l:..'

):;.' ( +, ',}.- .l -[ }' '.'-[*. ll, .j. ;,;..' Ll[' ; ,['! ~ l.. ". ', .k. } '. ' } _

=*-

WA?%%%wgeganskidmenhemWpig@We, y' ' p; " T C. '.[.~ ' l'f 1;. ?. l] t.y.. S 1 if.i.o-.. e '. '..,~; .Y, . [

  • [

^; '.' t _g ' *..i,'. g. ^' I

  • I

,',Y,f. _',e ; l. '.' ' .'cc',, ',. - ., l 'q. '.:.: N ';,, '. ?,. ' *. :.. I

.' ' l

~.',,.'.}', * ',4 [ $ ~ *-.-..~ '..,.. .*l.' '.-

  • l:.

' '. ':s. '.. ?...,, ' _ '.i.,l . ' 3 ;.. r; ,Y', ', ' '; r :',. -,, ' I:. l ' ' '.Y ; ', ' _'\\ '.. g.' l 1- ....r.-., e,'

... ; <',
f -

.t i i*.l.. :', -.',. ., - n('.,*; g., z. !. ;! n....-(.. .,e- "'r~. ...c.-.,...,)*s,..;=~.,_.,+_,,~..,.. .:.p.,..'.,f..... .1.. -.,..\\..

.:~'%^..

a, ..,;M::.::,, ::n:e ::, v. p. ' q,.. .!.,.^'a ..,....., '- *.;,,:.). 'se .w .a ,v'

r..

I..e... ; ~. )V&)-.'r.,y,'.,'. A ~,l, ; * '.. :,.,n .._,l'. ,,'.._'..',,g J .,f.y..:, 7.,... : ~ 1:!..,..y. _-O ol l ' I y _ j. :. " : '._;.[:l. *; _'; { ' ', l. :' (' y. }..; i,, ;.- '.'t,

e. '.....,.

7,' " .. u .,... '......,.,c s, e a., o .e' .'- y -Q. ;%, ' 4[;. ' ' y '. ' f *...'. Q'; -, f',,3 ',.: fg '.'; :~.' '., ". " :.": ( ) :(.,? f sl."-Q,. i 27_g [' l';. ' '. ' ' _ -l - :Q-[.

  1. [','.

's a.] 'e.. f..I ,;..'p<., .',,.l.'.',.,.,'",i.3'..i. ,.,','...,.eh.. h * ' +. .$. f., ; g'[..,-5 . ".,'...i,'al,,v,.$'.,;[J.,'2,.s--

  1. [.. ;, '
'%.'lfu. m,.

[,.1>,'.,.'. " o I, l E 'l. '.:-, ,',.5. ',; g f

.i

,'y. ). l' '.h, '.,.,,' '.* l [.k ' 'h7'..c,i.,,.,= ,v.",..s.f, u, .y,..',,.<'. per 's .,,** ' *= f A: ., '.,g.',...; -p 9 g ...,e, .a, ,"*q .+.J y, ,,..,,.,(y',., .u * *,..,',c'e + ,,b.  : *..,p., (, e - '; y, '.g i.- . ', ;f,

  • J.

.,,,, 'i .J,' .f..,..,,,,.7 7. ,",I ;f ,J.,.' .,.,,,] ,.+-.p',.,,"..; ' :.,,,. 4* y.,...c. f. J;, g_, -;,.,,;,.

q ;<..o, i;,. jl...- i,.-".,...'.,,.g.

,e .. *; - - o *;, ', :. ; ,.g..,c..e, ,'.,: :. n...,,.: ; %.., ,...gr....,,,* s^ f

e. * ; q5,,.'.,,,,#,-

c ,.c .;......s. . '.,. j., **,,.,.,3,..,i,,, ..P,,,,' -. ; *,f q e r. g 3*. .,y 3

.,,. ;. N,;.. <..: uc ',.,. y.. [,;..:,, f'.,i -*
e,.....,;

t,

- i'.,
. c.."

~, - ? . q.'.s .-.- - y ~:a.- g ~. '.a 3.. J ~,,n., ?..... e'. p~

.. ;.; ; ; ;. l; ;;.. r.,,.4.,,,1. _;: c yy.

.. ;,;.,,..c

,-.:...-,...e ~L ;,,:.,.1.,.

c a i.. ;y ',. 9,, y s. :..,,...., 3 _....,'.', n n. < i.;

  • c
n

, ;.;,.., g >, ...,..,,,4'm .,;s:.. .c, :

Q,. '. s...: 7,:..,. ;.;; '. ;.. q.;

y g.. ,.,'..,./;.,.'.~. ..;f. .p .'eu',.,,. ': r ,.3,

f.3 '.

', s%,' ': l :. c., ... v:.,p:.. ;, _ ..'..,,'..L1,,9..!.s<. s w... '...' ',, i;. y, :.'.'i,'....:.:..s. *.:r':a:-'.. P..y.'6'; ;. 9,;..'. u., l .".,n. ...R . :. -i.: +, s,,.,.,,, -' '....' L.

c..,.

. s,. v.-; :: ' i. g.. .. v. :'.:.. ...&: :.9 .s. v. . :: 3., :< '. ' ^ ', , ? '.,' i : l ;..;.. .;..,".'.+v. -).r..... " - :;',M '.;.. ' '..

'.c,.- '-

L. N o' r :: c. . J: n ..": v..;3. :':. .e _.,.,....x..t;.". . -...,.--:..,.,.....';;,... s :_ u ;.e :. - 3 ,.,,s-C l' a.. .:<L e.. -

u

. - >. ; t .. =.-. '.',[ , \\.,.. ............,., ' '...'.'... '.. ' '. 'i.'....., f PECO f,rungy Company - 2301 McLet Street g to Hon $6W . Philmfelphia.1% 19101 I _}}

Retrieved from "https://kanterella.com/w/index.php?title=ML20072V454&oldid=4407283"