ALLEGHENY ENERGY INC
U-12-IB, 1998-03-31
ELECTRIC SERVICES
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                         UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     Washington, DC  20549

                 Three-year period ending 2000

             FORM U-12(I)-B (THREE-YEAR STATEMENT)

       STATEMENT PURSUANT TO SECTION 12(i) OF THE PUBLIC
        UTILITY HOLDING COMPANY ACT OF 1935 BY A PERSON
         REGULARLY EMPLOYED OR RETAINED BY A REGISTERED
          HOLDING COMPANY OR A SUBSIDIARY THEREOF AND
           WHOSE EMPLOYMENT CONTEMPLATES ONLY ROUTINE
              EXPENSES AS SPECIFIED IN RULE 71(b)

         (To be filed in DUPLICATE.  If acknowledgment
                is desired, file in triplicate)


1.   Name and business address of person filing statement:

     PETER J. SKRGIC
     800 CABIN HILL DRIVE
     GREENSBURG, PA  15601

2.   Names and business addresses of any persons through whom the
     undersigned proposes to act in matters included  within  the
     exemption provided by paragraph (b) of Rule 71:

          NONE

3.   Registered  holding  companies and subsidiary  companies  by
     which the undersigned is regularly employed or retained:

     ALLEGHENY  ENERGY, INC., A REGISTERED HOLDING  COMPANY,  AND
     CERTAIN  OF  ITS  SUBSIDIARY COMPANIES, INCLUDING  ALLEGHENY
     POWER SERVICE CORPORATION

4.   Position  or  relationship  in  which  the  undersigned   is
     employed or retained by each of the companies named in  Item
     3,  and  brief  description  of nature  of  services  to  be
     rendered in each such position or relationship:

     SENIOR   VICE   PRESIDENT   OF   ALLEGHENY   POWER   SERVICE
     CORPORATION.  POSITIONS HELD WITHOUT  COMPENSATION:   SENIOR
     VICE  PRESIDENT  OF ALLEGHENY ENERGY, INC.; VICE  PRESIDENT,
     DIRECTOR   AND   MEMBER  OF  THE  OPERATING   COMMITTEE   OF
     MONONGAHELA  POWER  COMPANY, WEST PENN  POWER  COMPANY,  THE
     POTOMAC  EDISON  COMPANY, AYP CAPITAL,  INC.  AND  ALLEGHENY
     COMMUNICATIONS  CONNECT,  INC.;  AND  VICE   PRESIDENT   AND
     DIRECTOR OF ALLEGHENY GENERATING COMPANY

5.        a)    Compensation received during the current year and
          estimated  to  be received over the next  two  calendar

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          years  by  the  undersigned  or  others,  directly   or
          indirectly,  for services rendered by the  undersigned,
          from  each of the companies designated in Item 3.  (Use
          column  (a) as supplementary statement only.)  [Amended
          in  Release No. 35-26031 (Paragraph 85,337),  effective
          May 31, 1994, 59 F.R. 21922.]


               Salary or other compensations
              received      to be             Person or company
Name of                    received           from whom received
Recipient        (a)         (b)              or to be received

P. J. SKRGIC                                  Allegheny Power
      1997                $256,988            Service Corp.
      1998                $280,008
      1999                $291,208
      2000                $302,856

          (b)  Basis for compensation if other than salary.

               Mileage


6.   (To  be  answered  in  supplementary  statement  only.   See
     instructions.)  Expenses incurred by the undersigned, or any
     person  named in Item 2 above, during the calendar  year  in
     connection  with the activities described in Item  4  above,
     and the source or sources of reimbursement for same.

          (a)  Total amount of routine expenses
               charged to client: $21,357.42

          (b)  Itemized list of all other expenses:



Dated: February 18, 1998

                                   /s/ Peter J. Skrgic







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