EXHIBIT 99





ATLANTIC CITY ELECTRIC COMPANY


PRO FORMA FINANCIAL STATEMENTSGENERATION ASSET SALE





General





In 1999, the electric utility business of Atlantic City Electric Company (ACE) was restructured pursuant to legislation
enacted in New Jersey and a Summary Order issued by the New Jersey Board of Public Utilities (NJBPU). The restructuring of ACEs electric utility business is discussed in ACEs 2001 Annual Report on Form 10-K in Notes 1, 5, 6, 7 and 10 to
the Consolidated Financial Statements, included in Item 8 of Part II.





Electric Generating Plants Sold During 2001





On October 18, 2001, ACE sold for $29.6 million its 7.51% (164 MW) interest in Peach Bottom Atomic Power Station (Peach Bottom), 7.41% interest (167 MW)
in Salem Nuclear Generating Station (Salem) and 5.0% interest (52 MW) in Hope Creek Nuclear Generating Station (Hope Creek) and the related nuclear fuel to the utilities that operate the plants. ACEs trust funds and obligation for
decommissioning the plants were transferred to the purchasers in conjunction with the sale. The net assets sold had a carrying value of $27.3 million, which reflects a write-down in 1999 related to discontinuing Statement of Financial Accounting
Standards No. 71, Accounting For the Effects of Certain Types of Regulation (SFAS No. 71). ACE used $20.5 million of the proceeds to repay the lease obligations related to the nuclear fuel. There was a $2.4 million pre-tax gain on the
sale, which did not affect earnings due to the terms of the 1999 restructuring of the electricity generation business of ACE; instead, the pre-tax gain on the sale decreased the balance of deferred recoverable stranded costs.





Agreements for Sale of Electric Generating Plants





As discussed in Note 9 to the Consolidated Financial Statements included in Item 8 of Part II of Conectivs 2001 Annual Report on Form 10-K, as of December 31, 2001, ACEs fossil fuel-fired electric
generating plants (Deepwater Station, Conemaugh and Keystone Stations and B.L. England Station) were under agreements for sale to NRG for approximately $178 million (before adjustments for inventories, expenses, and other items). The plants to be
sold have electric generating capacity of 739.7 MW, and as of December 31, 2001, the carrying value of the plants was approximately $117 million. Due to the terms of ACEs electric utility restructuring in 1999 and expected sales proceeds, (i)
the loss expected to be realized on the sale of the Deepwater Station was included in the extraordinary charge to earnings in 1999, (ii) the loss expected to be realized on the sale of the B.L. England Station is included in recoverable stranded
costs, and (iii) any net gain that may be realized on the sale of ACEs interests in Conemaugh and Keystone Stations is expected to reduce the amount of stranded costs to be recovered from ACEs utility customers.




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Description of Pro Forma Financial Information





The following consolidated financial statements for ACE are filed with this Exhibit:





| |  |  | Unaudited Pro Forma Consolidated Balance Sheet at December 31, 2001, and
| | - |  | ------------------------------------------------------------------------




| |  |  | Unaudited Pro Forma 2001 Consolidated Statement of Income.
| | - |  | ----------------------------------------------------------




The following major assumptions were made in preparing these pro forma financial statements:





| |  |  | For purposes of the Pro Forma Consolidated Balance Sheet, (i) ACEs fossil fuel-fired electric generating plants that are subject to the agreements for sale, as discussed
in Note 9 to the Consolidated Financial Statements included in Item 8 of Part II of ACEs 2001 Annual Report on Form 10-K, were assumed to be sold as of December 31, 2001, and (ii) the proceeds from the sale of ACEs fossil fuel-fired
electric generating plants were assumed to be used to repay short-term and long-term debt, after considering expected debt retirement costs and tax payments on the gain on the sale of the electric generating plants.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| |  |  | For purposes of the Pro Forma 2001 Consolidated Statement of Income, the following sale and expected sale were assumed to have occurred on January 1, 2001: (i) the sale of
ACEs ownership interests in nuclear electric generating plants (383 MW) on October 18, 2001, and (ii) the expected sale of ACEs fossil fuel-fired electric generating plants (739.7 MW), which were under agreements for sale as of December
31, 2001. As a result, expenses related to the electric generating plants that were assumed to be sold were eliminated for the period of operations during 2001.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| |  |  | To replace the kilowatt-hours produced by the electric generating plants that were assumed to be sold, replacement energy and capacity were assumed to be purchased from the PJM
Interconnection, L.L.C. (PJM). The energy costs were based on an hourly PJM Locational Marginal Price (LMP) and the capacity costs were based on average PJM capacity rates.
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| |  |  | Under its rates for electricity supplied to utility customers, ACE was assumed to be permitted to earn a return on the stranded costs resulting from the power plant sales and
to no longer earn a return on the power plants sold.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| |  |  | Revenues which resulted from the Wholesale Transaction Confirmation Letter Agreements during 2001, as discussed in Note 9 to the Consolidated Financial Statements included in
Item 8 of Part II of ACEs 2001 Annual Report on Form 10-K, were assumed not to have been earned due to the assumption that the nuclear power plants were sold on January 1, 2001.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| |  |  | The net pro forma gain from the sale of ACEs fossil fuel-fired electric generating plants was primarily recorded as a reduction to recoverable stranded costs. A gain on
the Deepwater electric generating plant (primarily due to depreciation subsequent to the 1999 write-down associated with discontinuing the application of SFAS No. 71 to ACEs electric generation business) and the recognition of unamortized
deferred investment tax credits were credited to retained earnings.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| |  |  | An effective tax rate of 40% was utilized to calculate the income tax effects of adjustments to the Pro Forma 2001 Consolidated Statement of Income.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------



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These Pro Forma Consolidated Financial Statements have been prepared for comparative purposes only and do not purport to be indicative
of operations or financial condition which would have actually resulted if the sale of generation assets or other related transactions occurred on the dates of the period presented, or which may result in the future. Further, these Pro Forma
Consolidated Financial Statements have been prepared using information available at the date of this filing. As a result, certain amounts indicated herein are preliminary in nature and, therefore, will be subject to adjustment in the future.





Description of Pro Forma Adjustments





The Unaudited Pro Forma Consolidated Statement of Income and Balance Sheet filed with this Exhibit reflect the following adjustments:





Adjustments to the Consolidated Statement of Income





| | 1. |  | A net decrease in Operating revenues due to (i) no revenues from the operations of the deregulated Deepwater electric generating plant, and (ii) no revenues earned
under the Wholesale Transaction Confirmation Letter Agreements from ACEs interests in the nuclear electric generating plants.
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | 2. |  | An increase in Electric fuel and purchased energy and capacity primarily because the cost increase from ACE purchasing all energy and capacity requirements to meet
its retail load exceeded the cost decrease from no longer purchasing fuel for the electric generating units.
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| | 3. |  | Decreases in other operating expenses as a result of the assumed sales of certain electric generating plants as of January 1, 2001.
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| | 4. |  | A decrease in the amount of Deferred electric service costs associated with ACEs Basic Generation Service because (i) for ratemaking purposes, the total
return earned on the stranded costs of ACE is less than the total return earned on the generation rate base of ACEs divested plants, and (ii) there is a net reduction in the operating expenses associated with supplying ACEs load, which
results in a related reduction in the operating expenses deferred. For additional information, see Basic Generation Service in Note 6 to the Consolidated Financial Statements included in Item 8 of Part II of Conectivs 2001 Annual
Report on Form 10-K.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | 5. |  | A decrease in Interest charges as a result of retirement of debt due to the sale of certain electric generating plants.
| | -- |  | -------------------------------------------------------------------------------------------------------------------------




| | 6. |  | A decrease in income taxes due to the decrease in income before income taxes.
| | -- |  | -----------------------------------------------------------------------------




Adjustments to the Consolidated Balance Sheet





| | 1. |  | A net increase to Cash and cash equivalents primarily as a result of net proceeds received from the sale of certain electric generating plants, less cash used for
the retirement of short-term and long-term debt.
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | 2. |  | Net decreases in Fuel and Materials and supplies inventories, Investments, Property, plant and equipment, Other
within Deferred Charges and Other Assets, and Prepaid income taxes as a result of the sale of certain electric generating plants.
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | 3. |  | A decrease in Recoverable stranded costs, net due to an expected net gain on ACEs interests in Conemaugh and Keystone Stations, which, along with ACEs
B.L. England Station and ACEs former interests in nuclear electric generating plants, are subject to stranded cost recovery.
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| | 4. |  | Decreases to Short-term debt and Long-term debt because the proceeds from the sale of ACEs fossil fuel-fired electric generating plants were
assumed to be used to repay short-term and long-term debt, after considering expected debt retirement costs and tax payments on the gain on the sale of the electric generating plants.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | 5. |  | Changes to Deferred income taxes, net, Deferred investment tax credits, and Other within Deferred Credits and Other Liabilities
as a result of the sale of certain electric generating plants.
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




| | 6. |  | A gain on the Deepwater electric generating plant, primarily due to depreciation subsequent to the 1999 write-down associated with discontinuing the application of SFAS No. 71
to ACEs electric generation business, and the recognition of unamortized deferred investment tax credits was credited to retained earnings.
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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ATLANTIC CITY ELECTRIC COMPANY


UNAUDITED CONSOLIDATED PRO FORMA
STATEMENTS OF INCOME


YEAR ENDED DECEMBER 31, 2001





Reported


Adjustments


Pro Forma(Dollars in Thousands)OPERATING REVENUES

$
1,041,171


$
(53,308
)(1)

$
987,863OPERATING EXPENSESElectric fuel and purchased energy and capacity


636,552



42,143
(2)


678,695Operation and maintenance


249,247



(84,012
)(3)


165,235Depreciation and amortization


84,703



(30,821
)(3)


53,882Taxes other than income taxes


34,118



(1,180
)(3)


32,938Deferred electric service costs


(143,190
)


45,271
(4)


(97,919
)861,430



(28,599
)


832,831OPERATING INCOME


179,741



(24,709
)


155,032OTHER INCOME


11,504







11,504INTEREST EXPENSEInterest charges


62,166



(9,417
)(5)


52,749Allowance for borrowed funds used duringconstruction and capitalized interest


(714
)






(714
)61,452



(9,417
)


52,035PREFERRED DIVIDEND REQUIREMENTS ONPREFERRED SECURITIES OF SUBSIDIARY TRUSTS


7,619







7,619INCOME BEFORE INCOME TAXES


122,174



(15,292
)


106,882INCOME TAXES


46,698



(6,117
)(6)


40,581NET INCOME


75,476



(9,175
)


66,301DIVIDENDS ON PREFERRED STOCK


1,683







1,683EARNINGS APPLICABLE TO COMMON STOCK

$
73,793


$
(9,175
)

$
64,618




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ATLANTIC CITY ELECTRIC COMPANY


UNAUDITED CONSOLIDATED PRO FORMA
BALANCE SHEETS


As of December 31, 2001





Reported

Adjustments


Pro Forma(Dollars in Thousands)ASSETSCurrent AssetsCash and cash equivalents

$
14,261

$
20,328
(1)

$
34,589Accounts receivable net of allowances of $7,804


159,679






159,679Inventories, at average costFuel (coal and oil)


20,331


(20,331
)(2)


Materials and supplies


10,738


(1,839
)(2)


8,899Prepaid income taxes


41,044


(20,328
)(2)


20,716Other prepayments


1,756






1,756Deferred income taxes, net


181






181247,990


(22,170
)


225,820Investments


3,666


(3,590
)(2)


76Property, Plant and EquipmentElectric generation


136,152


(136,152
)(2)


Electric transmission and distribution


1,276,896


(1,007
)(2)


1,275,889Other electric facilities


116,215






116,215Other property, plant, and equipment


5,772






5,7721,535,035


(137,159
)


1,397,876Less: Accumulated depreciation


569,495


(19,879
)(2)


549,616Net plant in service


965,540


(117,280
)


848,260Construction work-in-progress


74,780






74,780Leased nuclear fuel, at amortized cost









1,040,320


(117,280
)


923,040Deferred Charges and Other AssetsRegulatory assetsRecoverable stranded costs, net


930,036


(27,971
)(3)


902,065Deferred electric service costs


106,259






106,259Other non-current regulatory assets


82,944






82,944Unamortized debt expense


12,966






12,966Other


8,149


1,104
(2)


9,2531,140,354


(26,867
)


1,113,487Total Assets

$
2,432,330

$
(169,907
)

$
2,262,423




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ATLANTIC CITY ELECTRIC COMPANY


CONSOLIDATED BALANCE SHEETS


As of December 31, 2001





Reported

Adjustments


Pro Forma(Dollars in Thousands)CAPITALIZATION AND LIABILITIESCurrent LiabilitiesShort-term debt

$
44,951

$
(44,951
)(4)

$
Long-term debt due within one year


221,450


(120,001
)(4)


101,449Variable rate demand bonds


22,600






22,600Accounts payable


58,001






58,001Interest accrued


17,224






17,224Dividends payable


6,302






6,302Other


40,461






40,461410,989


(164,952
)


246,037Deferred Credits and Other LiabilitiesDeferred income taxes, net


470,420


(718
)(5)


469,702Deferred investment tax credits


28,482


(7,114
)(5)


21,368Regulatory liability for New Jersey income tax benefit


49,262






49,262Above-market purchased energy contracts and









other electric restructuring liabilities


16,615






16,615Pension benefit obligation


35,529






35,529Other postretirement benefit obligation


36,429






36,429Other


13,311


(4,648
)(5)


8,663650,048


(12,480
)


637,568CapitalizationCommon stock, $3 par value; shares authorized: 25,000,000 ; shares outstanding: 18,320,937


54,963






54,963Additional paid-in capital


410,194






410,194Retained earnings


156,152


7,525
(6)


163,677Total common stockholders equity


621,309


7,525



628,834Preferred stock not subject to mandatory redemption


6,231






6,231Preferred stock subject to mandatory redemption


12,450






12,450Company obligated mandatorily redeemable preferred securities of subsidiary trusts holding solely company debentures


95,000






95,000Long-term debt


636,303






636,3031,371,293


7,525



1,378,818Total Capitalization and Liabilities

$
2,432,330

$
(169,907
)

$
2,262,423




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