<PAGE>
___________________________________
:
IN THE MATTER OF :
:
AYP CAPITAL, INC. :
: CERTIFICATE
File No. 70-8951 : PURSUANT TO RULE 24
: FOR THE QUARTER ENDED
(Public Utility Holding : SEPTEMBER 30, 1997
Company Act of 1935) :
___________________________________:
During the third quarter, AYP Capital, Inc. (AYP
Capital) continued its activities in marketing and selling heat
pumps. In connection with these activities, through the third
quarter of 1997 AYP Capital has spent $396,813 in operation and
maintenance expenses, $39,075 in capital expenditures less $3,298
in depreciation expenses for a net $35,777.
Attached are consolidated financial statements for the
quarter ended September 30, 1997.
AYP CAPITAL, INC.
By /s/ Thomas K. Henderson
Thomas K. Henderson
Vice President
AYP Capital, Inc.
Dated: November 26, 1997
<PAGE>
AYP CAPITAL
CONSOLIDATED STATEMENT OF INCOME
FOR TWELVE MONTHS ENDED SEPTEMBER 30, 1997
<TABLE>
<CAPTION>
QTR YTD 12MOS
<S> <C> <C> <C>
ELECTRIC OPERATING REVENUES 28,334,752 52,872,630 54,954,359
OPERATING EXPENSES:
Operation:
Fuel 5,915,550 17,796,907 18,524,406
Purchased Power & Exchange 17,129,328 22,739,647 24,074,231
Other 1,867,252 3,678,912 4,805,522
Transmission & Distribution 1,082,251 2,868,850 3,127,170
Cust. Accts & Services 1,581,474 1,750,813 1,837,988
Administrative & General 1,780,473 4,611,159 5,470,634
Total Operation & Maintenance 29,356,328 53,446,288 57,839,951
Depreciation 2,305,433 4,948,966 4,960,239
Taxes other than income taxes 1,290,542 3,741,772 4,507,334
Federal and state income taxes (2,834,992) (6,826,539) (8,754,118)
Total Operating Expenses 30,117,310 55,310,488 58,553,406
Operating Income (1,782,558) (2,437,858) (3,599,047)
OTHER INCOME AND DEDUCTIONS:
Other income, net 144,031 335,128 511,358
Total Other Income and Deductio 144,031 335,128 511,358
Income Before Interest Charges and
Preferred Dividends (1,638,527) (2,102,730) (3,087,689)
INTEREST CHARGES AND PREFERRED DIVIDENDS:
Interest on other long-term obligations 2,772,267 8,226,400 10,064,533
Other interest (2,737) 19,130 19,145
Total Interest Charges and
Preferred Dividends 2,769,530 8,245,530 10,083,679
Consolidated Net Income (4,408,056) (10,348,260) (13,171,368)
</TABLE>
Unaudited
<PAGE>
AYP Capital, Inc.
CONSOLIDATED BALANCE SHEET
As of September 30, 1997
Assets
Property, plant, and equipment:
At original cost 175,038,454
Accumulated depreciation (4,983,875)
170,054,579
Investments and other assets:
Nonutility investments 6,403,149
6,403,149
Current assets:
Cash and temporary cash investments 8,175,611
Accounts receivable:
Electric service 7,253,615
Other 1,642
Accts. Receivable - Affiliates 352,564
Materials and supplies--at average cost:
Operating and construction 2,491,782
Fuel 2,446,476
Other 3,531,655
24,253,346
Deferred charges:
Other 492,775
492,775
Total Assets 201,203,848
Capitalization and Liabilities
Capitalization:
Common stock 1,000
Other paid-in capital 39,368,573
Retained earnings (14,228,887)
25,140,686
Preferred stock:
Long-term debt of subsidiaries 160,000,000
Long-term debt of subsidiaries 0
185,140,686
Current liabilities:
Accounts payable - Affil. 4,848,975
Accounts payable - Other 3,521,620
Taxes accrued:
Federal and state income 632,459
Other 1,969,884
Interest accrued 1,838,133
Payrolls Accrued 0
Other 390,566
13,201,638
Deferred credits and other liabilities:
Deferred income taxes 2,557,570
Other 303,954
2,861,524
Total Capitalization and Liabilities 201,203,848
Unaudited
