Business Context and Reporting Period
This Form 8-K, filed on November 28, 2000, by Commonwealth Edison Company (ComEd), reports a change in certifying accountants following the October 20, 2000, merger of PECO Energy Company and Unicom Corporation to form Exelon Corporation. ComEd is now a 99.9% owned subsidiary of Exelon.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures. The document focuses exclusively on the administrative change of the independent auditor.
Material Changes
- Accountant Change: Effective November 28, 2000, PricewaterhouseCoopers LLP (PwC) was selected as the new independent accountant for Exelon and its subsidiaries, including ComEd.
- Dismissal: Arthur Andersen LLP was dismissed as ComEd's certifying accountant on the same date.
- Reasoning: The change aligns with the merger structure, as PwC was already the independent accountant for PECO Energy prior to the merger.
Outlook, Risks, and Unusual Items
Audit History: Arthur Andersen's reports for the two most recent fiscal years and interim periods contained no adverse opinions, disclaimers, or qualifications regarding uncertainty, audit scope, or accounting principles.
Disagreements: There were no disagreements with Arthur Andersen on accounting principles, financial statement disclosures, or auditing procedures during the two most recent fiscal years through November 27, 2000.
Consultations: ComEd consulted with PwC regarding two like-kind exchange transactions completed in 2000 involving Unicom Investments Inc. Arthur Andersen reviewed and concurred with PwC's accounting conclusions on these matters prior to the auditor selection process.
Investor Verification Checklist
- Verify the effective date of the auditor transition (November 28, 2000).
- Confirm that no disagreements existed between ComEd and the former auditor, Arthur Andersen.
- Review the SAS No. 50 reports (Exhibits 99-1 and 99-2) regarding the like-kind exchange transactions.
- Check Exhibit 16 for Arthur Andersen's letter to the SEC confirming the statements made in this filing.