<PAGE>
:
:
IN THE MATTER OF :
:
ALLEGHENY ENERGY, INC. et al. :
: CERTIFICATE
File No. 70-8491 : PURSUANT TO RULE 24
: FOR THE YEAR ENDED
(Public Utility Holding : DECEMBER 31, 1997
Company Act of 1935) :
:
:
As of December 31, 1997, AYP Capital, Inc., through
Envirotech, had made investments and security transactions
as outlined on Exhibit A, attached hereto.
The Balance Sheet and Statement of Income for AYP
Capital for the year ended December 31, 1997 are also included
as a part of this filing.
AYP CAPITAL, INC.
By /s/ Carol G. Russ
Carol G. Russ
Counsel
Dated: June 30, 1998
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Exhibit A
1) A description of the nature of each of the Envirotech Partnership's
investments and the cost of AYP Capital's 9.9% interestf:
<TABLE>
<CAPTION>
Company Investment Date Description Cost
<S> <C> <C> <C>
Active Power, Inc. May 1996 Flywheel energy storage systems
for UPS applications $1,800,003
AutomationSolutions December 1996 Machine automation and control $2,036,986
International LLC systems
Cycloid Company June 20, 1996 Designs, markets and manufactures
a tire inflation system $1,375,912
Inframetrics, Inc. September 30, 1996 Thermography systems and
thermal imagers $1,063,979
Lightware, Inc. June 1997 Manufactures ultraportable LCD
multimedia projectors $1,350,000
NSA Engineering, Inc. July 1997 Underground engineering software
and services $ 342,858
OK International, Inc. November 1996 Surface mount technology,
solder/desolder tools and
industrial equipment $1,785,999
Progressive System January 1996 Automated handling equipment for
Technologies, Inc. semiconductor and flat panel
industries $1,146,225
Valdor Fiber Optics, June 1997 Fiber optic connectors $ 574,974
Inc.
2) Detail of the receipt and disposition of each security received by AYP
Capital as an in-kind distribution during the reporting period:
The following company was divested in November 1997 with proceeds
reinvested in Envirotech.
Company Investment Date Description Cost
Revolve Technologies, June 1996 Compressor seals, magnetic
Inc. bearings $ 372,482
</TABLE>
AYP CAPITAL
CONSOLIDATED STATEMENT OF INCOME
FOR TWELVE MONTHS ENDED DECEMBER 31, 1997
QTR YTD 12MOS
ELECTRIC OPERATING REVENUES 32,923,176 85,795,805 85,795,805
OPERATING EXPENSES:
Operation:
Fuel 6,386,255 24,183,161 24,183,161
Purchased Power & Exchange 20,923,581 43,663,228 43,663,228
Other 1,405,092 5,084,005 5,084,005
Transmission & Distribution 886,972 3,755,822 3,755,822
Cust. Accts & Services 1,375,937 3,126,750 3,126,750
Administrative & General 3,415,261 8,026,420 8,026,420
Total Operation & Maintenance 34,393,098 87,839,386 87,839,386
Depreciation 1,656,853 6,605,819 6,605,819
Taxes other than income taxes 1,165,412 4,907,185 4,907,185
Federal and state income taxes (2,377,692) (9,204,231)(9,204,231)
Total Operating Expenses 34,837,671 90,148,159 90,148,159
Operating Income (1,914,495) (4,352,353)(4,352,353)
OTHER INCOME AND DEDUCTIONS:
Other income, net 1,123,762 1,458,889 1,458,889
Total Other Income and Deduction 1,123,762 1,458,889 1,458,889
Income Before Interest Charges and
Preferred Dividends (790,733) (2,893,464)(2,893,464)
INTEREST CHARGES AND PREFERRED DIVIDENDS:
Interest on other long-term obligations 2,772,267 10,998,667 10,998,667
Other interest 4,989 24,118 24,118
Total Interest Charges and
Preferred Dividends 2,777,255 11,022,785 11,022,785
Consolidated Net Income (3,567,989) (13,916,249(13,916,249)
Unaudited
AYP Capital, Inc.
CONSOLIDATED BALANCE SHEET
As of December 31, 1997
Assets
Property, plant, and equipment:
At original cost 175,404,888
Accumulated depreciation (6,621,112)
168,783,776
Investments and other assets:
Nonutility investments 4,992,433
4,992,433
Current assets:
Cash and temporary cash investments 12,299,437
Accounts receivable:
Electric service 16,165,512
Other 1,060,715
Allowance for Uncollectible Accounts (6,080)
Accts. Receivable - Affiliates 139,657
Materials and supplies--at average cost:
Operating and construction 2,361,347
Fuel 2,166,526
Other 3,337,138
37,524,252
Deferred charges:
Other 278,139
278,139
Total Assets 211,578,599
Capitalization and Liabilities
Capitalization:
Common stock 1,000
Other paid-in capital 43,869,066
Retained earnings (17,796,876)
26,073,190
Preferred stock:
Long-term debt of subsidiaries 160,000,000
Long-term debt of subsidiaries 0
186,073,190
Current liabilities:
Accounts payable - Affil. 4,010,613
Accounts payable - Other 12,598,101
Taxes accrued:
Federal and state income 1,610,362
Other 1,637,935
Interest accrued 1,838,133
Payrolls Accrued 0
Other 456,176
22,151,321
Deferred credits and other liabilities:
Deferred income taxes 3,095,250
Other 258,837
3,354,087
Total Capitalization and Liabilities 211,578,599
Unaudited
