ATLANTIC ENERGY INC. DECLARES 1991 A POSITIVE YEAR
ATLANTIC ENERGY INC. DECLARES 1991 A POSITIVE YEAR PLEASANTVILLE, N.J., April 22 /PRNewswire/ -- Atlantic Energy Inc.
(NYSE: ATE) President Jerrold Jacobs announced today at the company's annual meeting of shareholders that 1991 was a positive year.
In his presentation, Jacobs noted that, for the 39th consecutive year, the company continued its record of increasing dividends paid to shareholders. He also credited Atlantic Electric, the company's chief subsidiary, with another exceptional performance record for the year. FINANCIAL PERFORMANCE Earnings per share increased in 1991 to $3.49 from $3.02 in 1990. Jacobs attributed the successful year in large part to Atlantic Electric's efforts in negotiating a $50-million increase in base rates, and to a 2.3 percent increase in kilowatt-hour sales. ATLANTIC ELECTRIC'S OPERATIONS The rate negotiations culminated in July with the Board of Regulatory Commissioners (BRC) approving a $50-million increase in base rates which included a reduction to 12.5 percent in the company's allowed return on equity. The customer growth slowed down to a modest 4,100 additional accounts added in 1991. "This is a direct reflection upon the state of our economy," Jacobs said. "In contrast, the depressed economy also accounted for the increase in tourist trade for our coastal regions. This, in turn, contributed to the increase in sales, resulting in a record peak demand of 10 percent over 1990." On a current note, Jacobs also reported that the company recently settled the Peach Bottom litigation involving Philadelphia Electric (NYSE: PE). The $15.5 million settlement will be paid in October. It is anticipated that Atlantic Energy shareholders will benefit from 75 percent of the net proceeds of that settlement. The company's safety record was also on the president's mind. "1991 was Atlantic Electric's safest year ever," Jacobs said. "That fine performance is continuing. Earlier this year, the production section recorded more than 1 million hours of work without a lost-time accident." OTHER SUBSIDIARY ACTIVITY As a whole, the nonutility subsidiaries did not fare as well as Atlantic Electric. In total, they lost about 22 cents per share as the result of a one-time write-off by Atlantic Generation that shed small, unprofitable projects. Jacobs also reported that one of Atlantic Generation's larger cogeneration projects began commercial operation in March 1992 and will provide Atlantic Electric with 106 megawatts of capacity and energy in 1992. Other projects are continuing according to schedule. Atlantic Energy Technology, the company's newest subsidiary, continues to work closely with the new housing market to supply energy- efficient heating and cooling systems. Atlantic Southern Properties and ATE Investment will continue on their current courses with no new investments. ATE Investment contributed two cents to earnings for Atlantic Energy in 1991. ENVIRONMENTAL FOCUS Noting that the company's annual meeting falls on Earth Day, Jacobs underscored the pride that the company takes in its environmental awareness. "We are proud of our successful efforts over the years to become even more environmentally sensitive," he said. He emphasized the innovative construction techniques used to build new transmission lines which have minimal impact on the environment, and the renovation of the Millville Holly Orchard. LOOKING AHEAD "We foresee more changes in the utility industry during the next 10 years than we have ever experienced in the past," Jacobs said. The proposed changes by the U.S. Senate in the Public Utility Holding Company Act will allow independent power producers to establish themselves as generators of electricity. In addition, the Energy Committee of the House of Representatives has included mandatory transmission access in its version of the energy bill. If enacted, electric utilities could be required to open transmission lines paid for by the utility customers and shareholders to independent power producers. In compliance with the amendments to the Clean Air Act, the company said it will continue with plans to install scrubbers at its B.L. England Generating Station in Beesley's Point. Another issue being addressed in the coming months involves the recovery of the company's costs incurred as a result of the changes in New Jersey's gross receipts and franchise tax law. The issue is currently before the BRC. In spite of these challenges, Jacobs said he is optimistic about the company's performance in 1992, and welcomes the opportunity to compare its performance with the "best of the best," always looking for ways to improve performance. He said he expects improved results from Atlantic Generation and Atlantic Energy Technology as they continue to find ways to meet today's demands for more energy efficiency. He cited Atlantic Electric's strong marketing program, the company's on-going promotion of southern New Jersey as a prime place for business, and its continuing efforts with cost control as the critical elements of another successful year. /delval/ -0- 4/22/92 /CONTACT: Martha Inman of Atlantic Energy, 609-645-4545/ (ATE) CO: Atlantic Energy, Inc. ST: New Jersey IN: UTI SU:
CC -- PH052 -- 1527 04/22/92 17:56 EDT
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|Date:||Apr 22, 1992|
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