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UNITED STATES
SECURITES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-9C-3
QUARTERLY REPORT PURSUANT TO RULE 58
For the quarter ended September 30, 1998
ALLEGHENY ENERGY, INC.
(Name of registered holding company)
10435 Downsville Pike, Hagerstown, Maryland 21740-1766
(Address of principal executive offices)
Inquiries concerning this Form U-9C-3 should be directed to:
Kenneth M. Jones
Allegheny Energy, Inc.
10435 Downsville Pike
Hagerstown, MD 21740-1766
(301) 665-2710
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ITEM 1 - ORGANIZATION CHART
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<CAPTION>
<S> <C> <C> <C> <C>
Name Energy or State Percentage
of Reporting gas-related Date of Of of Voting
Company Company Organization Organization Securitie Held
Allegheny Energy, Inc. (1)
AYP Capital, Inc. (2)
Allegheny Energy (3) Energy July 23, 1997 Delaware 100
Solutions, Inc.
</TABLE>
Nature of Business:
(1) Allegheny Energy, Inc. holds
directly all of the outstanding
securities in AYP Capital, Inc.
(2) AYP Capital, Inc. holds directly
all of the outstanding securities in
Allegheny Energy Solutions, Inc.
(3) Allegheny Energy Solutions, Inc.
marketed electric power generation
within the scope of the Pennsylvania
retail customer choice pilot program.
Allegheny Energy Solutions, Inc. also
offered products and services,
complementing energy sales, to meet the
needs of both business and residential
customers. While Allegheny Energy
Solutions, Inc. will cease operations
as an electric generation supplier and
will discontinue supplying generation
services upon January 1999 customer
meter reading dates, the company will
continue to market nonutility energy
sales to retail customers under the
brand name of Allegheny Energy, under
the direction of a newly created Energy
Supply Business Unit.
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ITEM 2 - ISSUANCES AND RENEWALS OF SECURITIES AND CAPITAL CONTRIBUTIONS
Company Company Amount
Contributing Receiving Of Capital
Capital Capital Contribution
AYP Capital, Inc. Allegheny Energy $1,000 100 Shares of
Solutions, Inc. Common Stock
AYP Capital, Inc. Allegheny Energy $3,242,620 Capital Contributions
Solutions, Inc.
ITEM 3 - ASSOCIATE TRANSACTIONS
Part I - Transactions performed by reporting companies on
behalf of associate companies
Reporting Associate
Company Company Types of Direct Indirect Cost Total
Rendering Receiving Services Costs Costs Of Amount
Services Services Rendered Charged Charged Capital Billed
No services have been provided by the reporting
company to associate companies to date.
Part II -- Transactions performed by associate companies on
behalf of reporting companies
Associate Reporting
Company Company Types of Direct Indirect Cost Total
Rendering Receiving Services Costs Costs Of Amount
Services Services Rendered Charged Charged Capital Billed
Allegheny Allegheny Technical $91,9265 $34,197 - $726,122
Power Energy support;
Service Solutions, planning &
Corporation Inc. implementation
of financial
programs;
counsel on
corporate,
legal and
regulatory
matters;
general and
administrative
services
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ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT
Investments in energy-related
companies:
Total consolidated
capitalization as of
September 30, 1998 $4,396,995,000 line 1
Total capitalization multiplied by
15%
(line 1 multiplied by 0.15) $ 659,549,250 line 2
Greater of $50 million or line 2 $ 659,549,250 line 3
Total current aggregate investment:
(categorized by major line of
energy-related business)
Allegheny Energy Solutions, $ 942,016
Inc.
Total current aggregate $ 942,016 line 4
investment
Difference between the greater of $50 million or
15%
of capitalization and the total
aggregate investment
of the registered holding
company system
(line 3 less line 4) $658,607,234 line 5
Investments in gas-related companies:
None
ITEM 5 - OTHER INVESTMENTS
Major Line Other Other
of Energy- Investment Investment Reason for
Related in Last in This Difference in
Business U-9C-3 U-9C-3 Other
Report Report Investment
None
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ITEM 6 - FINANCIAL STATEMENTS AND EXHIBITS
Allegheny Energy Solutions, Inc. Statement of Income
for the Quarter and Year-to-date ended September 30, 1998.
Allegheny Energy Solutions, Inc. Balance Sheet as of
September 30, 1998.
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Signature
Pursuant to the requirements of the Public Utilities
Holding Company Act of 1935, Allegheny Energy, Inc. has duly
caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ALLEGHENY ENERGY, INC.
/s/ KENNETH M. JONES
Kenneth M. Jones
(Chief Accounting Officer)
November 24, 1998
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ALLEGHENY ENERGY SOLUTIONS, INC.
STATEMENT OF INCOME
FOR THE PERIODS ENDED SEPTEMBER 30, 1998
Three Months EndYear To Date Ended
September 30, 19September 30, 1998
OPERATING REVENUES:
Residential $1,619,176 $4,667,100
Commercial 3,244,064 8,904,946
Industrial 1,924,637 5,305,882
Wholesale and Other 4 21
Total Operating Revenues 6,787,881 18,877,949
OPERATING EXPENSES:
Power costs:
Purchased Power 6,268,240 16,956,417
Customer Accounting & Services 588,289 2,005,596
Administrative & General 502,222 1,261,224
Total Operation & Maintenance 7,358,751 20,223,237
Depreciation 4,535 13,552
Taxes other than income taxes 375,524 979,724
Federal and state income taxes (207,487) (463,950)
Total Operating Expenses 7,531,323 20,752,563
Operating Income (743,442) (1,874,614)
Other Income, Net 373,592 1,037,725
Interest Charges 15,482 24,731
Net Income ($385,332) ($861,620)
Unaudited
ALLEGHENY ENERGY SOLUTIONS, INC.
BALANCE SHEET
As of September 30, 1998
Assets
Property, Plant and Equipment:
At Original Cost $424,505
Accumulated Depreciation (16,468)
408,037
Current assets:
Cash 2,156,815
Accounts Receivable:
Electric Service 3,816,872
Other 2,093,696
Allowance for Uncollectibles (98,723)
Accounts Receivable - Affiliates 10,008
7,978,668
Deferred charges:
Other 36,218
Total Assets $8,422,923
Capitalization and Liabilities
Capitalization:
Common stock $1,000
Other paid-in capital 3,242,620
Retained earnings (2,301,604)
942,016
Current liabilities:
Short - Term Debt 0
Accounts payable - Affiliated 599,551
Accounts payable - Other 2,144,186
Taxes accrued:
Federal & State Income 3,209,414
Other 884,502
6,837,653
Deferred credit and liabilities
Other 643,254
Total Capitalization and Liabilities $8,422,923
Unaudited
