:
:
IN THE MATTER OF :
:
ALLEGHENY POWER SYSTEM, INC. et al. :
: CERTIFICATE
File No. 70-8411 : PURSUANT
: TO RULE 24
(Public Utility Holding : FOR THE QUARTER ENDED
Company Act of 1935) : DECEMBER 31, 1995
:
:
As of December 31, 1995, Allegheny Power System, Inc. ("APS") has
made capital contributions to AYP Capital, Inc. ("AYP Capital") totaling
$1,838,303. During the fourth 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
fourth 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
activities associated with the provision of such services to
nonaffiliated entities.
B. Energy Management Services - AYP Cogenex
AYP Capital continued to jointly pursue with EUA-Cogenex
opportunities for demand-side management activities which
included, but were not limited to, marketing and sales,
auditing, bidding, and job procurement and performance.
Such development activities were performed by the joint
venture within Washington, D.C. and the states of Maryland,
Ohio, Pennsylvania, Virginia and West Virginia.
C. EWGs and FUCOs
AYP Capital funded investments of $700,174 in 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. FondElec purchased
2.36% of the securities of Ontario-Quinta A.V.V. (Aruba),
which in turn owns 60% of an electric distribution company
in Lima, Peru. AYP Capital has committed to invest up to $5
million in FondElec.
AYP Capital agreed to purchase Duquesne Light Company's 50%
interest in Unit No. 1 of the Fort Martin Power Station for
$169 million. AYP Capital intends to utilize its share of
the unit as an exempt wholesale generator ("EWG") and sell
the output at market prices. Obtaining the necessary
regulatory approvals will likely take several months. AYP
Capital expects a closing in 1996.
AYP Capital also performed studies and completed preliminary
development activities in connection with the ownership of
companies for the acquisition and ownership of EWGs.
<PAGE>
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.
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 December 31, 1995 are also attached hereto and 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: February 28, 1996
U:\DUMP\AYP\RULE24.D95
AYP Capital, Inc.
BALANCE SHEET
DECEMBER 31, 1995
ASSETS
CURRENT ASSETS :
CASH 16,763.77
UNBILLED CHARGES 52,240.22
ACCOUNTS RECEIVABLE 9,720.00
TOTAL CURRENT ASSETS 78,723.99
PROPERTY, PLANT, & EQUIPMENT :
AT ORIGINAL COST 17,232.25
ACCUMULATED DEPRECIATION (1,436.00)
TOTAL PROPERTY, PLANT, & EQUIPMENT 15,796.25
INVESTMENTS & OTHER ASSETS :
INVESTMENT IN ENVIROTECH PARTNERSHIP 314,236.70
UNDISTRIBUTED EARNINGS OF ENVIROTECH (10,235.00)
INVESTMENT IN FONDELEC PARTNERSHIP 700,174.00
INVESTMENT IN APS COGENEX JOINT VENTURE 71,803.60
TOTAL INVESTMENTS & OTHER ASSETS 1,075,979.30
OTHER DEFERRED CHARGES 275,572.48
TOTAL ASSETS 1,446,072.02
LIABILITIES AND CAPITALIZATION
CURRENT LIABILITIES :
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 179,082.40
OTHER ACCOUNTS PAYABLE 723.85
TOTAL LIABILITIES 179,806.25
CAPITALIZATION :
COMMON STOCK, $10 PAR, 1,000 SHARES AUTHORIZED,
100 SHARES OUTSTANDING 1,000.00
OTHER PAID-IN CAPITAL 1,837,303.34
RETAINED EARNINGS (572,037.57)
TOTAL CAPITALIZATION 1,266,265.77
TOTAL LIABILITIES AND CAPITALIZATION 1,446,072.02
AYP Capital, Inc.
STATEMENT OF INCOME
FOR THE PERIOD ENDED DECEMBER 31, 1995
YEAR TWELVE
QUARTER TO DATE MONTHS
OPERATING REVENUES :
SERVICES RENDERED 9,200.00 25,006.27 25,006.27
OPERATING EXPENSES :
EXEMPT WHOLESALE GENERATORS 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 64,920.81 584,733.28 584,733.28
DEPRECIATION 1,436.00 1,436.00 1,436.00
TAXES OTHER THAN INCOME 28.00 554.00 554.00
TOTAL OPERATING EXPENSES 66,384.81 586,723.28 586,723.28
OPERATING INCOME (57,184.81) (561,717.01) (561,717.01)
OTHER (INCOME) / DEDUCTIONS 10,296.95 10,317.60 10,317.60
INTEREST CHARGES 2.96 2.96 2.96
NET INCOME (LOSS) (67,484.72) (572,037.57) (572,037.57)
