:
:
IN THE MATTER OF :
:
ALLEGHENY POWER SYSTEM, INC. et al. :
: CERTIFICATE
File No. 70-8411 : PURSUANT TO RULE 24
: FOR THE QUARTER ENDED
(Public Utility Holding : JUNE 30, 1996
Company Act of 1935) :
:
:
As of June 30, 1996, Allegheny Power System, Inc. ("APS") has made
capital contributions to AYP Capital, Inc. ("AYP Capital") totaling
$4,455,428.35. During the second quarter, AYP Capital performed studies and
completed preliminary development activities in connection with the ownership
of companies in the areas of emerging technologies closely related to APS's
core business. Other specific activities performed by AYP Capital during the
second quarter are shown below.
I. Description of Activities
A. Consulting and Engineering Services
AYP Capital provided engineering and consulting services to
nonaffiliated entities and completed preliminary development and
marketing activities associated with the provision of such
services to nonaffiliated entities.
B. Energy Management Services - APS Cogenex
AYP Capital and EUA-Cogenex agreed to cease joint marketing
activities for energy management services under the terms of their
joint venture agreement for APS Cogenex. Pending resolution of
outstanding jobs, the APS Cogenex joint venture continues to
exist.
C. EWGs and FUCOs
AYP Capital, through the Latin American Energy and Electricity
Fund I, L.P. ("FondElec"), a limited partnership formed to invest
in and develop electric energy opportunities in Latin America,
continued to investigate FUCO investments. On May 8, 1996,
Fondelec acquired an interest in the electric distribution company
in the province of Entre Rios, Argentina for $12,060,604.58, of
which AYP Capital's share was $1,200,030.16. As of the end of the
second quarter of 1996, AYP Capital has invested $1,942,434.80 in
Fondelec.
AYP Capital continued to seek and receive necessary regulatory
approvals to purchase Duquesne Light Company's 50% interest in
Unit No. 1 of the Fort Martin Power Station. AYP Capital's
limited purpose subsidiary, AYP Energy, Inc., has received its
certification as an exempt wholesale generator ("EWG") from FERC.
Pending certain additional regulatory approvals, AYP Energy
expects to close on the purchase in the third quarter of 1996.
D. Real Estate Activities
Acting as agent on behalf of APS, AYP Capital performed
studies and completed preliminary activities in connection
with the potential development of non-utility real estate
assets owned by APS subsidiaries.
II. Guarantees or assumption of liabilities by APS on behalf of AYP Capital
or its subsidiaries
APS did not provide any guarantees or assume liabilities on behalf of
AYP Capital or its subsidiaries in the second quarter.
III. Services Provided by AYP Capital to Associate Companies
AYP Capital did not provide any services to associate companies.
IV. Factoring Activities
AYP Capital did not perform any activities associated with the factoring
of accounts receivables.
The Balance Sheet and Statement of Income for AYP Capital for the
quarter ended June 30, 1996 are also included as a part of this filing.
ALLEGHENY POWER SYSTEM, INC.
By NANCY L. CAMPBELL
Nancy L. Campbell
Vice President & Treasurer
AYP CAPITAL, INC.
By NANCY L. CAMPBELL
Nancy L. Campbell
Vice President & Treasurer
Dated: August 27, 1996
U:\DUMP\AYP\RULE24.696
AYP Capital, Inc.
BALANCE SHEET
As of June 30, 1996
Current Assets
Cash, FNB of Maryland $464,799.16
Account Recv, Other 42,000.00
Account Recv, Affiliates 41,637.45
Total Current Assets $548,436.61
Property and Equipment
Nonutility Property $45,968.20
Accum Deprec, Nonutility Prop (3,159.20)
Total Property and Equipment $42,809.00
Other Long-Term Assets
Invst in EnviroTech, net $415,435.46
Invst in FondElec, net 1,942,434.80
Invst in APS Cogenex, net 200,070.94
Other Deferred Charges 640,752.19
Total Other Assets $3,198,693.39
Total Assets $3,789,939.00
Current Liabilities
Accounts Payable, Other $1,076.95
Accounts Payb, Affiliates 291,819.45
Taxes Payable 65,515.00
Other Current Liabilities 184.54
Total Current Liabilities $358,595.94
Long-Term Liabilities
Total Long-Term Liabilities $0.00
Total Liabilities $358,595.94
Capital
Common Stock Issued * $1,000.00
Other Paid-In Capital 4,454,428.35
Retained Egs, Unappropriated (572,037.57)
Net Income (452,047.72)
Total Capital $3,431,343.06
Total Liabilities & Capital $3,789,939.00
*1,000 shares authorized, 100 shares outstanding
AYP Capital, Inc.
STATEMENT OF INCOME
For the Period Ending June 30, 1996
Description QTR YTD 12MOS
Operating Revenues
Svcs Rendered to Nonaffiliates $31,300.00 $52,300.00 $61,500.00
Total Operating Revenues $31,300.00 $52,300.00 $61,500.00
Operating Expenses
Exempt Wholesale Gen $0.00 $0.00 $0.00
Foreign Utility Companies 0.00 0.00 0.00
Factoring of Accts Recv 0.00 0.00 0.00
Other Operations 239,824.11 646,800.68 927,627.73
Depreciation Expense 861.60 1,723.20 3,159.20
Taxes Other Than Income 675.00 1,835.00 1,863.00
Income Taxes (234,410.00) (243,410.00) (243,410.00)
Total Operating Expenses $6,950.71 $406,948.88 $689,239.93
Operating Income $24,349.29 ($354,648.88) ($627,739.93)
Other Revenues & (Expenses)
Investment Income ($78,807.45) ($102,826.26) ($113,061.26)
Other, net 2,502.41 5,427.42 5,341.86
Total Nonoperating Activity ($76,305.04) ($97,398.84) ($107,719.40)
Net Income ($51,955.75) ($452,047.72) ($735,459.33)
