As Filed with the Securities and Exchange Commission on March 31, 2003 |
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In the Matter of |
CERTIFICATE |
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Pepco Holdings, Inc. and |
OF |
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File No. 70-9947 |
NOTIFICATION |
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(Public Utility Holding |
PURSUANT TO RULE 24 |
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This Certificate of Notification is filed by Pepco Holdings, Inc., a Delaware corporation ("PHI"), pursuant to Rule 24 (17 C.F.R. Section 250.24) under the Public Utility Holding Company Act of 1935 (the "Act"). Such filing is made in connection with PHI's Form U-1 Application-Declaration, as amended (the "Application"), and as authorized by the order of the Securities and Exchange Commission (the "Commission") dated July 31, 2002, (the "Order") in the above-referenced file. The Order directs that PHI file with the Commission quarterly certificates pursuant to Rule 24 within 60 days after each of the first three calendar quarters and within 90 days after the last calendar quarter. |
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1. |
Sales of common stock or preferred securities by PHI and the purchase price per share and the market price per share at the date of the agreement of sale. |
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Purchase |
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Shares Issuable under |
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1,067129 |
863,973(1) |
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(1) Represents vested portion of 2,122,601 options granted and outstanding as of 12/31/02. |
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3. |
The number of shares of PHI common stock issued for acquisitions, the value per share and any restrictions thereon in the hands of the acquirer. |
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None |
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4. |
A list of guarantees issued during the period, including the name of the guarantor, the name of the beneficiary and the amount of the guarantee. |
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Amount of |
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PHI |
Conectiv Energy Supply, |
80,676 |
Payment/Trading |
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PHI |
Pepco Energy Services, Inc. |
36,866 |
Payment/Trading |
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PHI |
Conectiv Energy Supply, |
3,592 |
Letter of Credit/Canadian Trading |
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PHI |
Pepco Energy Services, Inc. |
85,343 |
Construction |
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Potomac Capital |
Aircraft International |
3,225 |
Payment |
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Potomac Capital |
PCI Air Management |
2,398 |
Payment |
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PHI |
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PHI |
Conectiv |
1,175 |
Letter of Credit |
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PHI |
Conectiv Bethlehem LLC |
24,170 |
Letter of Credit |
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PHI |
Conectiv Energy Supply, |
40,644 |
Letter of Credit |
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PHI |
Atlantic Generation, Inc. |
6,000 |
Letter of Credit |
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PHI |
Atlantic City Electric |
1,600 |
Letter of Credit |
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PHI |
Conectiv Delmarva |
23,441 |
Letter of Credit |
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PHI |
Conectiv Mid-Merit, Inc. |
1,627 |
Letter of Credit |
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PHI |
Conectiv Delmarva |
365 |
Letter of Credit |
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PHI |
Thermal Energy L.P. I |
31,612 |
Letter of Credit |
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PHI |
Money Pool Depositors |
436,257 |
Deposit Guarantee |
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5. |
The amount and terms of any PHI indebtedness or debt issued under the Genco limit during the period. |
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Issue |
Amount |
Interest |
Maturity |
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PHI |
9/3/02 |
350,000,000 |
5.50 |
8/15/07 |
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PHI |
9/3/02 |
750,000,000 |
6.45 |
8/15/12 |
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PHI |
9/3/02 |
250,000,000 |
7.45 |
8/15/32 |
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PHI |
9/16/02 |
150,000,000 |
5.50 |
8/15/07 |
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PHI |
Various |
411,300,000(1) |
1.78(2) |
Various |
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Conectiv Bethlehem, LLC |
Various |
* |
*(2) |
(3) |
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(1) Balance at 12/31/02 (2) Weighted average interest rate at 12/31/02 (3) Maturity date is the later of 6/25/06 or two years after loan is converted to term loan. * Confidential treatment requested. |
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6. |
Amount and terms of any short-term debt issued during the period by any Utility Subsidiary of PHI. |
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Issuer |
Amount Issued ($) |
Interest Rate (%) |
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Potomac Electric Power Company |
40,000,000(1) |
1.50(2) |
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Conectiv Delmarva Generation, Inc. |
*(1) |
*(2) |
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Conectiv Mid-Merit, Inc. |
*(1) |
*(2) |
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(1) Balance at 12/31/02(2) Interest rate at 12/31/02 * Confidential treatment requested. |
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7. |
Amount and terms of any financings consummated by any Nonutility Subsidiary not exempt under Rule 52. |
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Amount Issued |
Interest |
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Atlantic Generation, Inc. |
(1) |
(1) |
(1) |
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Conectiv |
Various |
331,803,135(2) |
2.155(3) |
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Conectiv Bethlehem, LLC |
Various |
*(2) (4) |
*(3) |
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Conectiv Communications, Inc. |
8/6/02 |
* |
* |
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Conectiv Energy Holding Company |
Various |
*(2) |
*(3) |
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Conectiv Energy Supply, Inc. |
(1) |
(1) |
(1) |
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Conectiv Thermal Systems, Inc. |
(1) |
(1) |
(1) |
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Conectiv Operating Services Company |
(1) |
(1) |
(1) |
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Conectiv Pennsylvania Generation, Inc. |
Various |
*(2) |
*(3) |
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DCTC-Burney, Inc. |
(1) |
(1) |
(1) |
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Pepco Energy Services, Inc. |
(1) |
(1) |
(1) |
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PHI Service Company |
Various |
41,616,550(2) |
2.155(3) |
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(1) To be reported on Form U-9C-3 for Pepco Holdings, Inc.(2) Balance at 12/31/02 (3) Interest rate at 12/31/02 (4) Excludes Genco debt reported in Item 5 above * Confidential treatment requested. |
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8. |
Notional amount and principal terms of any Hedge Instruments or Anticipatory Hedges during the period and the identity of the other parties thereto. |
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9. |
List of U-6B-2 forms filed with the Commission during the period, including the name of the filing entity and the date of filing. |
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Filing Entity |
Date of Filing |
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ATE Investment, Inc. |
3/31/03 |
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Atlantic Southern Properties, Inc. |
3/31/03 |
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Conectiv Properties and Investments, Inc. |
3/31/03 |
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Potomac Capital Investment Corporation |
3/31/03 |
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10. |
Consolidated balance sheet as of the end of the quarter and separate balance sheets as of the end of the quarter for each company, including PHI, that has engaged in jurisdictional financing transactions during the period. |
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FS-1 |
Balance Sheet of Pepco Holdings, Inc. and Subsidiaries as of December 31, 2002 (incorporated by reference to the filing of PHI's Annual Report on Form 10-K for the year ended December 31, 2002) |
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FS-2 |
Balance Sheet of Pepco Holdings, Inc. as of December 31, 2002 |
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FS-3 |
Balance Sheet of Potomac Electric Power Company as of December 31, 2002 (incorporated by reference to the filing of Pepco's Annual Report on Form 10-K for the year ended December 31, 2002) |
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FS-4 |
Balance Sheet of Conectiv Energy Holding Company and Subsidiaries as of December 31, 2002 (confidential treatment requested) |
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FS-5 |
Balance Sheet of Conectiv Energy Holding Company as of December 31, 2002 (confidential treatment requested) |
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FS-6 |
Balance Sheet of Conectiv Delmarva Generation, Inc. as of December 31, 2002 (confidential treatment requested) |
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FS-7 |
Balance Sheet of Conectiv Mid-Merit, Inc. as of December 31, 2002 (confidential treatment requested) |
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FS-8 |
Balance Sheet of Conectiv Bethlehem, LLC as of December 31, 2002 (confidential treatment requested) |
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FS-9 |
Balance Sheet of Atlantic City Electric Company Transition Funding LLC as of December 31, 2002 (incorporated by reference to the filing of Atlantic City Electric Company Transition Funding LLC's Annual Report on Form 10-K for the year ended December 31, 2002) |
11. |
Table showing, as of the end of the quarter, the dollar and percentage components of the capital structure of PHI on a consolidated basis and Pepco, Delmarva, ACE and CEH. |
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PHI |
Pepco |
Delmarva |
ACE |
CEH |
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Amount ($MM) |
% |
Amount ($MM) |
% |
Amount ($MM) |
% |
Amount ($MM) |
% |
Amount ($MM) |
% |
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Debt |
6,090.2 |
64.2 |
1,173.5 |
49.8 |
674.6 |
50.2 |
1,098.8 |
60.4 |
* |
* |
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Preferred Stock |
400.7 |
4.2 |
207.8 |
8.8 |
91.7 |
6.8 |
101.2 |
5.6 |
* |
* |
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Common Equity |
2.995.8 |
31.6 |
975.4 |
41.4 |
577.8 |
43.0 |
619.2 |
34.0 |
* |
* |
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Total Capitalization |
9,486.7 |
100.0 |
2,356.7 |
100.0 |
1,344.1 |
100.0 |
1,819.2 |
100.0 |
* |
* |
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* Confidential treatment requested. |
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12. |
Retained earnings analysis of PHI consolidated, Pepco, Delmarva, ACE and CEH detailing gross earnings, goodwill amortization, dividends paid out of each capital account and the resulting capital account balances at the end of the quarter. |
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PHI |
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Net Income |
210.5 |
139.1 |
49.7 |
28.2 |
* |
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Other comprehensive loss |
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Dividends: |
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Preferred Stock |
(5.0) |
(1.7) |
(0.7) |
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Common Stock |
(130.6) |
(62.6) |
(48.5) |
(29.7) |
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Dividends to Pepco Holdings |
(432.2) |
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Merger Related Transactions: |
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Transfer of ownership of PCI and PES |
54.2 |
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Premium on capital stock retired, net of expense |
18.2 |
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Transfer of premium on treasury shares |
62.1 |
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Cancellation of treasury shares and related capital stock expense |
(279.0) |
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Preferred stock expense for redeemed stock |
(0.1) |
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Treasury stock cancelled |
(215.8) |
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Balance as of December 31, 2002 |
838.2 |
468.9 |
364.4 |
153.9 |
* |
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13. |
Information showing the calculation of the portion of PHI's loss attributable to the Merger. |
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Merger related costs expensed in 2002 ($): |
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Accounting fees |
145,462 |
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Rating Agency fees |
315,425 |
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Amortization of rating fees |
337,486 |
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Amortization of debt expense |
1,229,055 |
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Amortization of legal fees |
16,683 |
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Total |
2,044,111 |
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14. |
Spreadsheet showing the actual allocation of income taxes to each of the members of the consolidated group. |
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See attached Schedule 1. |
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15. |
Registration statements filed under the Securities Act of 1933 with respect to securities that are subject to the Application. |
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Filing |
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PHI |
333-100478 |
10/10/12 |
Long-Term Debt/ Common Stock |
500 |
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Conectiv |
333-100108 |
9/26/02 |
Exchange Offer for Long-Term Debt |
250 |
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16. |
New Financing Subsidiaries established during period. |
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None. |
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SIGNATURE |
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I, Anthony J. Kamerick, Vice President and Treasurer of Pepco Holdings, Inc., certify that the transactions included in this Certificate of Notification have been carried out in accordance with the terms and conditions of and for the purposes represented in the Application. |
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March 31, 2003 |
Pepco Holdings, Inc. /s/ Anthony J. Kamerick Anthony J. Kamerick Vice President and Treasurer |