ATLANTIC CITY ELECTRIC TRANSITION FUNDING, LLC
STATEMENTS OF EARNINGS AND MEMBER'S EQUITY
(Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

2004

2003

2004

2003

(Millions of Dollars)

Operating Revenue

   Utility

$19.6 

$13.5 

$51.4 

$35.1 

Operating Expenses

  Amortization of bondable transition property

13.0 

8.3 

31.6 

19.4 

  Interest expense

6.6 

5.1 

19.8 

15.3 

  Servicing and administrative expenses

- 

0.1 

- 

0.4 

    Total Operating Expenses

19.6 

13.5 

51.4 

35.1 

Operating Income

- 

- 

- 

- 

Other Income

  Interest and dividend income

- 

- 

- 

- 

    Total Other Income

- 

- 

- 

- 

Income Before Income Tax Expense

- 

- 

- 

- 

Income Tax Expense

- 

- 

- 

- 

Net Income

$   - 

$   - 

$   - 

$   - 

Member's equity, beginning of period

$ 3.0 

$ 2.2 

$3.0 

$ 2.2 

Net Income

- 

- 

- 

- 

Member's equity, end of period

$ 3.0 

$ 2.2 

$3.0 

$ 2.2 

The accompanying Notes are an integral part of these Financial Statements.