ATLANTIC CITY ELECTRIC TRANSITION FUNDING, LLC
STATEMENTS OF CASH FLOWS
(Unaudited)

Nine Months Ended September 30,

2004

2003

(Millions of Dollars)

OPERATING ACTIVITIES

Net income

$    - 

$   - 

Adjustments to reconcile net income to net
  cash from operating activities:

    Amortization of bondable transition property

31.6 

19.4 

    Transition bond charge receivable from Servicer

(5.4)

(8.5)

    Accrued interest and other

5.3 

15.3 

Net Cash From Operating Activities

31.5 

26.2 

INVESTING ACTIVITIES

Deposit of restricted funds held by trustee

(17.0)

(24.6)

Net Cash Used by Investing Activities

(17.0)

(24.6)

FINANCING ACTIVITIES

Long-term debt redeemed

(13.7)

- 

Debt issuance costs

(0.8)

(1.6)

Net Cash Used By Financing Activities

(14.5)

(1.6)

Net Change in Cash and Cash Equivalents

- 

- 

Cash and Cash Equivalents at Beginning of Period

- 

- 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$    - 

$   - 

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