:
:
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 : MARCH 31, 1996
Company Act of 1935) :
:
:
As of March 31, 1996, Allegheny Power System, Inc. ("APS") has made
capital contributions to AYP Capital, Inc. ("AYP Capital") totaling
$2,685,027.60. During the first 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
first 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 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 made no additional investments in FUCOs 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. As
of the end of the first quarter of 1996, AYP Capital has
invested $801,625.00 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.
In the first quarter, AYP Capital formed a limited purpose
subsidiary, AYP Energy, Inc., which will hold the interest
in Ft. Martin Unit No. 1. AYP Energy will apply to the
Federal Energy Regulatory Commission to be certified as
an exempt wholesale generator ("EWG") and will sell the
output at market prices. AYP Capital expects a closing in
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.
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 March 31, 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: May 29, 1996
U:\DUMP\AYP\RULE24.396
AYP CAPITAL, INC.
BALANCE SHEET
AS OF MARCH 31, 1996
CURRENT ASSETS
CASH, FNB OF MARYLAND $ 128,192.37
ACCOUNT RECV, OTHER 21,577.96
ACCOUNT RECV, AFFILIATES 65,101.45
TOTAL CURRENT ASSETS $ 214,871.78
PROPERTY AND EQUIPMENT
NONUTILITY PROPERTY $ 17,232.25
ACCUM DEPREC, NONUTILITY PROP (2,297.60)
TOTAL PROPERTY AND EQUIPMENT $ 14,934.65
OTHER LONG-TERM ASSETS
INVST IN ENVIROTECH, NET $ 435,751.35
INVST IN LAEEF I, NET 801,625.00
INVST IN APS COGENEX, NET 118,816.94
INVST IN FONDELEC GP, NET 0.00
OTHER DEFERRED CHARGES 302,835.16
TOTAL OTHER ASSETS $1,659,028.45
TOTAL ASSETS $1,888,834.88
CURRENT LIABILITIES
ACCOUNTS PAYABLE, OTHER $ 292.66
ACCOUNTS PAYB, AFFILIATES 173,580.08
TAXES PAYABLE 1,925.00
OTHER CURRENT LIABILITIES 139.08
TOTAL CURRENT LIABILITIES $ 175,936.82
LONG-TERM LIABILITIES
TOTAL LONG-TERM LIABILITIES $ 0.00
TOTAL LIABILITIES $ 175,936.82
CAPITAL
COMMON STOCK ISSUED * $ 1,000.00
OTHER PAID-IN CAPITAL 2,684,027.60
RETAINED EGS, UNAPPROPRIATED (572,037.57)
NET INCOME (400,091.97)
TOTAL CAPITAL $1,712,898.06
TOTAL LIABILITIES & CAPITAL $1,888,834.88
* $10 PAR, 1,000 SHARES AUTHORIZED, 100 SHARES OUTSTANDING.
<PAGE>
AYP CAPITAL, INC.
STATEMENT OF INCOME
FOR THE PERIOD ENDING MARCH 31, 1996
DESCRIPTION QTR YTD 12MOS
OPERATING REVENUES
SVCS RENDERED TO NONAFFILIATES $ 21,000.00 $ 21,000.00 $ 30,200.00
TOTAL OPERATING REVENUES $ 21,000.00 $ 21,000.00 $ 30,200.00
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 406,976.57 406,976.57 825,048.11
DEPRECIATION EXPENSE 861.60 861.60 2,297.60
TAXES OTHER THAN INCOME 1,160.00 1,160.00 1,714.00
INCOME TAXES (9,000.00) (9,000.00) (9,000.00)
TOTAL OPERATING EXPENSES 399,998.17 399,998.17 820,059.71
OPERATING INCOME (378,998.17) (378,998.17) (789,859.71)
OTHER REVENUES & (EXPENSES)
INVESTMENT INCOME (24,018.81) (24,018.81) (34,253.81)
OTHER, NET 2,925.01 2,925.01 2,839.45
TOTAL NONOPERATING ACTIVITY (21,093.80) (21,093.80) (31,414.36)
NET INCOME $(400,091.97) $(400,091.97) $(821,274.07)
