<PAGE>
___________________________________
:
IN THE MATTER OF :
:
AYP CAPITAL, INC. :
: CERTIFICATE
File No. 70-8951 : PURSUANT TO RULE 24
: FOR THE QUARTER ENDED
(Public Utility Holding : DECEMBER 31, 1997
Company Act of 1935) :
___________________________________ :
During the fourth quarter, AYP Capital, Inc. (AYP
Capital) continued its activities in marketing and selling heat
pumps. To date, in connection with these activities, AYP Capital
has spent a total of $604,624 in operation and maintenance
expenses, $39,075 in capital expenditures less $5,252 in
depreciation expenses for a net $33,823. Attached are
consolidated financial statements for the quarter ended December
31, 1997.
AYP CAPITAL, INC.
By /s/ Thomas K. Henderson
Thomas K. Henderson
Vice President
AYP Capital, Inc.
Dated: March 2, 1998
<PAGE>
AYP CAPITAL
CONSOLIDATED STATEMENT OF INCOME
FOR TWELVE MONTHS ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
QTR YTD 12MOS
<S> <C> <C> <C>
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 Deductio 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)
</TABLE>
Unaudited
AYP CAPITAL
CONSOLIDATED STATEMENT OF INCOME
FOR TWELVE MONTHS ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
QTR YTD 12MOS
<S> <C> <C> <C>
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 Deductio 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)
</TABLE>
Unaudited
<PAGE>
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
