File No. 70-7956
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
POST-EFFECTIVE AMENDMENT NO. 4
TO
APPLICATION OR DECLARATION
ON
FORM U-1
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
Monongahela Power Company The Potomac Edison Company
1310 Fairmont Avenue 10435 Downsville Pike
Fairmont, WV 26554 Hagerstown, MD 21740
West Penn Power Company
800 Cabin Hill Drive
Greensburg, PA 15601
(Name of company or companies filing this statement and
addresses of principal executive offices)
Allegheny Power System, Inc.
(Name of top registered holding company parent of each
applicant or declarant)
Nancy H. Gormley, Esquire
Vice President
Allegheny Power System, Inc.
12 East 49th Street
New York, NY 10017
(Name and address of agent for service)
<PAGE>
The Applicants hereby amend their Application or Declaration on
Form U-1 as follows:
1. Applicants hereby add the following to the end of Item 1.
Description of Proposed Transactions:
The third stage of the proposed transactions involves three tax-
exempt financings in the aggregate amount of $35,295,000 by the County
Commission of Harrison County, West Virginia (the Commission) for Monongahela
Power Company (Monongahela), The Potomac Edison Company (Potomac Edison), and
West Penn Power Company (West Penn) (collectively, the APS Companies), wholly-
owned subsidiaries of Allegheny Power System, Inc., a registered public
utility holding company, of certain sludge processing, handling and disposal
facilities, waste water treatment facilities and associated land, interests in
land and equipment (hereinafter referred to as the Facilities) which are part
of a project involving the installation of a flue-gas desulfurization system
at the Harrison Power Station (Harrison) located in Harrison County, West
Virginia. The tax-exempt financings will be effected through the issuance by
the APS Companies of secured solid waste disposal notes to support the
issuance of solid waste disposal revenue bonds by the Commission.
In an Order dated April 23, 1992 (HCAR No. 25522), the Securities
and Exchange Commission (SEC) approved the APS Companies' Application or
Declaration on Form U-1 concerning the tax-exempt financing of the Facilities
up to an aggregate of $180 million. In its Order, the SEC also approved the
issuance by the APS Companies of $20 million of secured solid waste disposal
notes to support the issuance of $20 million of solid waste disposal bonds by
<PAGE>
the Commission. The SEC reserved jurisdiction over the remaining $160 million
in tax-exempt financing. In an Order dated May 18, 1993 (HCAR 25813), the SEC
approved the issuance by the APS Companies of $42,708,000 of secured solid
waste disposal notes to support the issuance of $42,708,000 of solid waste
disposal bonds by the Commission. The SEC reserved jurisdiction over the
remaining $117,292,000 of notes.
For 1994, the West Virginia Economic Development Authority
(Authority) has allocated up to $35,295,000 of tax-exempt solid waste disposal
bonds (Bonds) to finance the Facilities, which amount includes $295,000 which
was allocated to Harrison County at the end of 1993 and was carried over to
1994. Pursuant to the terms of the Authority's notice, the Commission must
issue and sell the approved $35,295,000 in Bonds no later than October 13,
1994. Harrison is jointly owned by the APS Companies with the following
undivided interests: West Penn - 42.24%; Potomac Edison - 32.76%; and
Monongahela - 25%. The cost of the Facilities will be divided among the APS
Companies in accordance with each APS Company's percentage ownership of
Harrison. It is expected that the principal amount of each series of Bonds to
be issued by the Commission at this time will not exceed $8,825,000 in respect
of Monongahela, $11,560,000 in respect of Potomac Edison and $14,910,000 in
respect of West Penn, each of such series to be issued at an interest rate
not to exceed 8.0%.
The Bonds in respect of each Company will be issued under a
supplement to a separate trust indenture with a corporate trustee, approved by
that Company, and shall be sold in one or more series, at such times (within
the time period or periods specified by the Authority), in such principal
<PAGE>
amounts, at such interest rates, for such prices, and with such other terms as
shall be approved by that Company.
Each Company's non-negotiable secured solid waste disposal note
will have terms corresponding to each series of Bonds in respect of principal
amount, interest rates, and redemption provisions. The remaining terms of the
proposed transactions will be the same as those described in the initial
Application or Declaration on Form U-1 filed by the APS Companies.
2. By adding the following material to the end of Item 2. Fees,
Commission and Expenses:
The following total estimated fees and expenses are expected to be
incurred by the APS Companies in connection with the issuance of three
separate Solid Waste Disposal Notes, Series C:
Notes-Series C
Bond Counsel Fees and Expenses 60,000
Authority Counsel Fees 15,000
Price Waterhouse 17,000
Printing Expenses 18,000
Trustee's Fees 13,500
Underwriter's Counsel Fees and Expenses 50,000
Blue Sky Fees 3,000
Rating Agency Fees 75,000
Total 251,500
<PAGE>
Each of the APS Companies will bear a proportionate share of these
expenses consistent with such APS Company's ownership interest in the Harrison
Station.
3. Applicants hereby amend Item 6. Exhibits and Financial
Statements, by filing the following:
(a) Exhibits:
A-1(ii) Form of Solid Waste Disposal Notes
(to be filed by amendment).
D-1(ii) Application to the Pennsylvania
Public Utility Commission (to be
filed by amendment).
D-2(ii) Order of the Pennsylvania Public
Utility Commission (to be filed by
amendment).
(b) Financial Statements as of March 31, 1994
1-A(ii) Balance sheets of Monongahela per books and pro
forma.
2-A(ii) Balance sheets of Potomac Edison per books and
pro forma.
3-A(ii) Balance sheets of West Penn per books and pro
forma.
4-A(ii) APS and subsidiaries consolidated balance sheet,
per books and pro forma.
1-B(ii) Statements of income and retained earnings of
Monongahela per books and pro forma.
2-B(ii) Statements of income and retained earnings of
Potomac Edison per books and pro forma.
3-B(ii) Statements of income and retained earnings of
West Penn per books and pro forma.
4-B(ii) APS and subsidiaries consolidated statements of
income and retained earnings, per books and pro
forma.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company
Act of 1935, each of the undersigned companies has duly caused this statement
to be signed on its behalf by the undersigned thereunto duly authorized on
July 12, 1994.
MONONGAHELA POWER COMPANY
THE POTOMAC EDISON COMPANY
WEST PENN POWER COMPANY
By NANCY H. GORMLEY
Nancy H. Gormley
Counsel
U:\DUMP\HARRISON.94\POSTEFF4
<TABLE>
<CAPTION>
CONTENTS
Statement
No.
Balance sheets at March 31, 1994, and pro forma giving
effect as at that date to the adjustments set forth herein:
<S> <C>
Monongahela Power Company 1-A(ii)
The Potomac Edison Company 2-A(ii)
West Penn Power Company and Subsidiaries 3-A(ii)
Allegheny Power System, Inc. and Subsidiaries 4-A(ii)
Statements of income and retained earnings for twelve months
ended March 31, 1994, and pro forma giving effect
as at beginning of period to the adjustments set forth herein:
Monongahela Power Company 1-B(ii)
The Potomac Edison Company 2-B(ii)
West Penn Power Company and Subsidiaries 3-B(ii)
Allegheny Power System, Inc. and Subsidiaries 4-B(ii)
</TABLE>
These financial statements have been prepared for Form U-1
purposes and are unaudited.
Reference is made to the Notes to Financial Statements in the
Allegheny Power System companies combined Annual Report on
Form 10-K for the year ended December 31, 1993, and to the
Form 10-Q's for the quarter ended March 31, 1994.
The income statements do not reflect any additional income from
investments which may be made with the proceeds from the
transactions set forth in this application-declaration.
<PAGE>
<TABLE>
<CAPTION>
Statement 1-A(ii)
MONONGAHELA POWER COMPANY
BALANCE SHEET - MARCH 31, 1994 PER BOOKS
AND PRO FORMA GIVING EFFECT AS AT THAT DATE
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
Assets
Property, plant, and equipment:
<S> <C> <C> <C>
At original cost 1,699,464 1,699,464
Accumulated depreciation (675,442) (675,442)
Investments and other assets:
Allegheny Generating Company -
common stock at equity 61,215 61,215
Other 576 576
Current assets:
Cash 123 8,560 8,683
Accounts receivable:
Electric service 55,238 55,238
Affiliated and other 14,246 14,246
Allowance for uncollectible accounts (1,240) (1,240)
Materials and supplies--at average cost:
Operating and construction 23,233 23,233
Fuel 19,674 19,674
Property taxes 12,833 12,833
Deferred power costs 7,220 7,220
Other 3,398 3,398
Deferred charges:
Regulatory assets 164,492 164,492
Unamortized loss on reacquired debt 12,047 12,047
Other 16,284 265 16,549
Total Assets 1,413,361 8,825 1,422,186
</TABLE>
*Proposed sale by the Company of $8,825,000 principal amount of New Pollution
Control Revenue Bonds, less estimated issuance expenses.
<PAGE>
<TABLE>
<CAPTION>
Statement 1-A(ii)
(continued)
MONONGAHELA POWER COMPANY
BALANCE SHEET - MARCH 31, 1994 PER BOOKS
AND PRO FORMA GIVING EFFECT AS AT THAT DATE
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
Capitalization and Liabilities
Capitalization:
Common stock:
Common stock - par value $50 per share,
authorized 8,000,000 shares, outstanding
5,891,000 shares (no change
<S> <C> <C> <C>
since 4-1-93) 294,550 294,550
Other paid-in capital (no change
since 4-1-93) 2,994 2,994
Retained earnings 188,462 188,462
Preferred stock:
Cumulative preferred stock - par value
$100 per share, authorized 1,500,000
shares, outstanding 640,000 shares:
Not subject to mandatory redemption 64,000 64,000
Long-term debt 461,170 8,825 469,995
Current liabilities:
Short-term debt 61,272 61,272
Accounts payable 24,298 24,298
Accounts payable to affiliates 8,165 8,165
Taxes accrued:
Federal and state income 12,609 12,609
Other 14,992 14,992
Interest accrued 10,497 10,497
Other 22,409 22,409
Deferred credits and other liabilities:
Unamortized investment credit 26,346 26,346
Deferred income taxes 192,733 192,733
Regulatory liabilities 19,080 19,080
Other 9,784 9,784
Total Capitalization and Liabilities 1,413,361 8,825 1,422,186
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement 2-A(ii)
THE POTOMAC EDISON COMPANY
BALANCE SHEET - MARCH 31, 1994 PER BOOKS
AND PRO FORMA GIVING EFFECT AS AT THAT DATE
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
Assets
Property, plant, and equipment:
<S> <C> <C> <C>
At original cost 1,880,477 1,880,477
Accumulated depreciation (643,990) (643,990)
Investments and other assets:
Allegheny Generating Company -
common stock at equity 63,482 63,482
Other 811 811
Current assets:
Cash 3,249 11,213 14,462
Accounts receivable:
Electric service 64,916 64,916
Affiliated and other 6,524 6,524
Allowance for uncollectible accounts (1,423) (1,423)
Materials and supplies--at average cost:
Operating and construction 27,160 27,160
Fuel 17,883 17,883
Prepaid taxes 11,143 11,143
Other 4,757 4,757
Deferred charges:
Regulatory assets 79,445 79,445
Unamortized loss on reacquired debt 9,039 9,039
Other 28,178 347 28,525
Total Assets 1,551,651 11,560 1,563,211
</TABLE>
*Proposed sale by the Company of $11,560,000 principal amount of New Pollution
Control Revenue Bonds, less estimated issuance expenses.
<PAGE>
<TABLE>
<CAPTION>
Statement 2-A(ii)
(continued)
THE POTOMAC EDISON COMPANY
BALANCE SHEET - MARCH 31, 1994 PER BOOKS
AND PRO FORMA GIVING EFFECT AS AT THAT DATE
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
Capitalization and Liabilities
Capitalization:
Common stock:
Common stock - no par value, authorized
23,000,000 shares, outstanding
22,385,000 shares (issued 2,500,000
<S> <C> <C> <C>
shares since 4-1-93) 447,700 447,700
Other paid-in capital (no change
since 4-1-93) 2,714 2,714
Retained earnings 189,787 189,787
Preferred stock:
Cumulative preferred stock - par value
$100 per share, authorized 5,400,046
shares, outstanding 639,784 shares:
Not subject to mandatory redemption 36,378 36,378
Subject to mandatory redemption 26,400 26,400
Long-term debt 519,245 11,560 530,805
Current liabilities:
Short-term debt 12,950 12,950
Long-term debt and preferred stock
due within one year 1,200 1,200
Accounts payable 36,596 36,596
Accounts payable to affiliates 13,598 13,598
Taxes accrued:
Federal and state income 19,920 19,920
Other 14,402 14,402
Interest accrued 11,428 11,428
Other 25,611 25,611
Deferred credits and other liabilities:
Unamortized investment credit 29,741 29,741
Deferred income taxes 135,835 135,835
Regulatory liabilities 18,733 18,733
Other 9,413 9,413
Total Capitalization and Liabilities 1,551,651 11,560 1,563,211
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement 3-A(ii)
WEST PENN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - MARCH 31, 1994 PER BOOKS
AND PRO FORMA GIVING EFFECT AS AT THAT DATE
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
Assets
Property, plant, and equipment:
<S> <C> <C> <C>
At original cost 2,833,061 2,833,061
Accumulated depreciation (975,357) (975,357)
Investments and other assets:
Allegheny Generating Company -
common stock at equity 102,025 102,025
Other 1,599 1,599
Current assets:
Cash 397 14,463 14,860
Accounts receivable:
Electric service 108,597 108,597
Affiliated and other 21,527 21,527
Allowance for uncollectible accounts (1,680) (1,680)
Notes receivable from affiliates 3,700 3,700
Materials and supplies--at average cost:
Operating and construction 38,380 38,380
Fuel 31,378 31,378
Prepaid taxes 31,199 31,199
Other 11,602 11,602
Deferred charges:
Regulatory assets 332,073 332,073
Unamortized loss on reacquired debt 11,357 11,357
Other 27,932 447 28,379
Total Assets 2,577,790 14,910 2,592,700
</TABLE>
*Proposed sale by the Company of $14,910,000 principal amount of New Pollution
Control Revenue Bonds, less estimated issuance expenses.
<PAGE>
<TABLE>
<CAPTION>
Statement 3-A(ii)
(continued)
WEST PENN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET - MARCH 31, 1994 PER BOOKS
AND PRO FORMA GIVING EFFECT AS AT THAT DATE
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
Capitalization and Liabilities
Capitalization:
Common stock:
Common stock - no par value, authorized
28,902,923 shares, outstanding
22,361,586 shares (issued 5,000,000
<S> <C> <C> <C>
shares since 4-1-93) 425,994 425,994
Other paid-in capital (decrease of
$145,000 since 4-1-93) 55,687 55,687
Retained earnings 419,242 419,242
Preferred stock:
Cumulative preferred stock - par value
$100 per share, authorized 3,097,077
shares, outstanding 1,497,077 shares:
Not subject to mandatory redemption 149,708 149,708
Long-term debt 784,130 14,910 799,040
Current liabilities:
Accounts payable 105,689 105,689
Accounts payable to affiliates 8,602 8,602
Taxes accrued:
Federal and state income 29,933 29,933
Other 11,329 11,329
Interest accrued 13,272 13,272
Other 29,927 29,927
Deferred credits and other liabilities:
Unamortized investment credit 54,876 54,876
Deferred income taxes 432,504 432,504
Regulatory liabilities 40,793 40,793
Other 16,104 16,104
Total Capitalization and Liabilities 2,577,790 14,910 2,592,700
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ALLEGHENY POWER SYSTEM, INC. AND SUBSIDIARIES Statement 4-A(ii)
CONSOLIDATED BALANCE SHEET - MARCH 31, 1994
PER BOOKS AND PRO FORMA GIVING EFFECT AS AT
THAT DATE TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
Assets
Property, plant, and equipment:
<S> <C> <C> <C>
At original cost 7,238,334 7,238,334
Accumulated depreciation (2,422,280) (2,422,280)
4,816,054 4,816,054
Investments and other assets:
Subsidiaries consolidated--excess of cost
over book equity at acquisition 15,077 15,077
Securities of associated company--at cost,
which approximates equity 1,250 1,250
Other 24,431 24,431
40,758 40,758
Current assets:
Cash 4,269 34,236 38,505
Accounts receivable:
Electric service 228,750 228,750
Other 9,587 9,587
Allowance for uncollectible accounts (4,345) (4,345)
Materials and supplies--at average cost:
Operating and construction 90,997 90,997
Fuel 68,935 68,935
Prepaid taxes 55,176 55,176
Deferred power costs 9,449 9,449
Other 16,433 16,433
479,251 34,236 513,487
Deferred charges:
Regulatory assets 582,158 582,158
Unamortized loss on reacquired debt 43,660 43,660
Other 84,914 1,059 85,973
710,732 1,059 711,791
Total Assets 6,046,795 35,295 6,082,090
Capitalization and Liabilities
Capitalization:
Common stock 147,547 147,547
Other paid-in capital 939,424 939,424
Retained earnings 908,334 908,334
1,995,305 1,995,305
Preferred stock:
Not subject to mandatory redemption 250,086 250,086
Subject to mandatory redemption 26,400 26,400
Long-term debt of subsidiaries 2,035,685 35,295 2,070,980
4,307,476 35,295 4,342,771
Current liabilities:
Short-term debt 122,504 122,504
Long-term debt and preferred stock
due within one year 11,200 11,200
Accounts payable 177,562 177,562
Taxes accrued:
Federal and state income 63,969 63,969
Other 42,221 42,221
Interest accrued 36,685 36,685
Other 89,529 89,529
543,670 0 543,670
Deferred credits and other liabilities:
Unamortized investment credit 164,247 164,247
Deferred income taxes 887,833 887,833
Regulatory liabilities 107,475 107,475
Other 36,094 36,094
1,195,649 1,195,649
Total Capitalization and Liabilities 6,046,795 35,295 6,082,090
</TABLE>
*Proposed sale by the subsidiaries of $35,295,000 principal amount of New
Pollution Control Revenue Bonds, less estimated issuance expenses.
<PAGE>
<TABLE>
<CAPTION>
Statement 1-B(ii)
MONONGAHELA POWER COMPANY
STATEMENT OF INCOME FOR TWELVE MONTHS ENDED MARCH 31, 1994
PER BOOKS AND PRO FORMA GIVING EFFECT AS AT BEGINNING OF PERIOD
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
<S> <C> <C> <C>
ELECTRIC OPERATING REVENUES 664,212 664,212
OPERATING EXPENSES:
Operation:
Fuel 146,812 146,812
Purchased power and exchanges, net 166,120 166,120
Deferred power costs, net 984 984
Other 67,292 67,292
Maintenance 69,012 69,012
Depreciation 56,793 56,793
Taxes other than income taxes 36,168 36,168
Federal and state income taxes 34,722 (248) 34,474
Total Operating Expenses 577,903 (248) 577,655
Operating Income 86,309 248 86,557
OTHER INCOME AND DEDUCTIONS:
Allowance for other than borrowed funds
used during construction 2,925 2,925
Other income, net 7,147 7,147
Total Other Income and Deductions 10,072 10,072
Income Before Interest Charges 96,381 248 96,629
INTEREST CHARGES:
Interest on first mortgage bonds 29,172 29,172
Interest on other long-term obligations 6,232 618 6,850
Other interest 2,517 2,517
Allowance for borrowed funds used during
construction (2,567) (2,567)
Total Interest Charges 35,354 618 35,972
Net Income 61,027 (370) 60,657
*Estimated interest requirements on the proposed sale of $8,825,000
New Pollution Control Revenue Bonds - assumed interest rate of 7% 618
Decrease in federal and state income taxes (248)
Decrease in Net Income 370
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement 1-B(ii)
(continued)
MONONGAHELA POWER COMPANY
STATEMENT OF RETAINED EARNINGS
FOR TWELVE MONTHS ENDED MARCH 31, 1994
(Thousands)
<S> <C>
Balance at April 1, 1993 182,791
Add:
Net income 61,027
243,818
Deduct:
Dividends on capital stock:
Preferred stock 4,458
Common stock 50,898
Total deductions 55,356
Balance at March 31, 1994 188,462
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement 2-B(ii)
THE POTOMAC EDISON COMPANY
STATEMENT OF INCOME FOR TWELVE MONTHS ENDED MARCH 31, 1994
PER BOOKS AND PRO FORMA GIVING EFFECT AS AT BEGINNING OF PERIOD
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
<S> <C> <C> <C>
ELECTRIC OPERATING REVENUES 743,304 743,304
OPERATING EXPENSES:
Operation:
Fuel 142,782 142,782
Purchased power and exchanges, net 224,864 224,864
Deferred power costs, net (10,414) (10,414)
Other 76,350 76,350
Maintenance 64,210 64,210
Depreciation 57,251 57,251
Taxes other than income taxes 47,376 47,376
Federal and state income taxes 34,103 (299) 33,804
Total Operating Expenses 636,522 (299) 636,223
Operating Income 106,782 299 107,081
OTHER INCOME AND DEDUCTIONS:
Allowance for other than borrowed funds
used during construction 4,485 4,485
Other income, net 8,220 8,220
Total Other Income and Deductions 12,705 12,705
Income Before Interest Charges 119,487 299 119,786
INTEREST CHARGES:
Interest on first mortgage bonds 36,655 36,655
Interest on other long-term obligations 5,541 809 6,350
Other interest 1,153 1,153
Allowance for borrowed funds used during
construction (2,835) (2,835)
Total Interest Charges 40,514 809 41,323
Net Income 78,973 (510) 78,463
*Estimated interest requirements on the proposed sale of $11,560,000
New Pollution Control Revenue Bonds - assumed interest rate of 7% 809
Decrease in federal and state income taxes (299)
Decrease in Net Income 510
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement 2-B(ii)
(continued)
THE POTOMAC EDISON COMPANY
STATEMENT OF RETAINED EARNINGS
FOR TWELVE MONTHS ENDED MARCH 31, 1994
(Thousands)
<S> <C>
Balance at April 1, 1993 178,161
Add:
Net income 78,973
257,134
Deduct:
Dividends on capital stock:
Preferred stock 4,408
Common stock 62,933
Charges on redemption of preferred stock 6
Total deductions 67,347
Balance at March 31, 1994 189,787
</TABLE>
<TABLE>
<CAPTION>
Statement 3-B(ii)
WEST PENN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME FOR TWELVE MONTHS ENDED MARCH 31, 1994
PER BOOKS AND PRO FORMA GIVING EFFECT AS AT BEGINNING OF PERIOD
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
<S> <C> <C> <C>
ELECTRIC OPERATING REVENUES 1,129,791 1,129,791
OPERATING EXPENSES:
Operation:
Fuel 257,932 257,932
Purchased power and exchanges, net 251,440 251,440
Deferred power costs, net 4,775 4,775
Other 136,401 136,401
Maintenance 102,592 102,592
Depreciation 83,593 83,593
Taxes other than income taxes 89,686 89,686
Federal and state income taxes 55,669 (441) 55,228
Total Operating Expenses 982,088 (441) 981,647
Operating Income 147,703 441 148,144
OTHER INCOME AND DEDUCTIONS:
Allowance for other than borrowed funds
used during construction 4,700 4,700
Other income, net 12,590 12,590
Total Other Income and Deductions 17,290 17,290
Income Before Interest Charges 164,993 441 165,434
INTEREST CHARGES:
Interest on first mortgage bonds 44,945 44,945
Interest on other long-term obligations 12,636 1,044 13,680
Other interest 1,954 1,954
Allowance for borrowed funds used during
construction (2,983) (2,983)
Total Interest Charges 56,552 1,044 57,596
Consolidated Net Income 108,441 (603) 107,838
*Estimated interest requirements on the proposed sale of $14,910,000
New Pollution Control Revenue Bonds - assumed interest rate of 7% 1,044
Decrease in federal and state income taxes (441)
Decrease in Consolidated Net Income 603
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement 3-B(ii)
(continued)
WEST PENN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
FOR TWELVE MONTHS ENDED MARCH 31, 1994
(Thousands)
<S> <C>
Balance at April 1, 1993 405,629
Add:
Consolidated net income 108,441
514,070
Deduct:
Dividends on capital stock:
Preferred stock 8,188
Common stock 86,640
Total deductions 94,828
Balance at March 31, 1994 419,242
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement 4-B(ii)
ALLEGHENY POWER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME FOR TWELVE MONTHS ENDED MARCH 31, 1994
PER BOOKS AND PRO FORMA GIVING EFFECT AS AT BEGINNING OF PERIOD
TO THE ADJUSTMENTS SET FORTH HEREIN
(Thousands)
Per Books Adjustments* Pro Forma
<S> <C> <C> <C>
ELECTRIC OPERATING REVENUES 2,421,180 2,421,180
OPERATING EXPENSES:
Operation:
Fuel 547,526 547,526
Purchased power and exchanges, net 456,711 456,711
Deferred power costs, net (4,655) (4,655)
Other 263,718 263,718
Maintenance 238,253 238,253
Depreciation 214,699 214,699
Taxes other than income taxes 181,959 181,959
Federal and state income taxes 137,696 (988) 136,708
Total Operating Expenses 2,035,907 (988) 2,034,919
Operating Income 385,273 988 386,261
OTHER INCOME AND DEDUCTIONS:
Allowance for other than borrowed funds
used during construction 12,110 12,110
Other income, net (275) (275)
Total Other Income and Deducti 11,835 11,835
Income Before Interest Charges and
Preferred Dividends 397,108 988 398,096
INTEREST CHARGES AND PREFERRED DIVIDENDS:
Interest on first mortgage bonds 110,772 110,772
Interest on other long-term obligations 43,426 2,471 45,897
Other interest 7,191 7,191
Allowance for borrowed funds used during
construction (8,385) (8,385)
Dividends on preferred stock of subsidia 17,053 17,053
Total Interest Charges and
Preferred Dividends 170,057 2,471 172,528
Consolidated Net Income 227,051 (1,483) 225,568
*Estimated interest requirements on proposed sale of $35,295,000 New Pollution Control
Revenue Bonds - assumed interest rate of 7% 2,471
Decrease in federal and state income taxes (988)
Decrease in Consolidated Net Income 1,483
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement 4-B(ii)
(continued)
ALLEGHENY POWER SYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
FOR TWELVE MONTHS ENDED MARCH 31, 1994
(Thousands)
<S> <C>
Balance at April 1, 1993 870,878
Add:
Consolidated net income 227,051
1,097,929
Deduct:
Dividends on common stock of Allegheny
Power System, Inc. (cash) 189,589
Charges on redemption of preferred stock 6
Total Deductions 189,595
Balance at March 31, 1994 908,334
</TABLE>
