a:\qtr1\Ventures-R24-0300.doc
___________________________________
:
IN THE MATTER OF :
:
ALLEGHENY ENERGY, INC. et. al. :
: CERTIFICATE
File No. 70-8411 : PURSUANT TO RULE 24
: FOR THE QUARTER ENDED
(Public Utility Holding : MARCH 31, 2000
Company Act of 1935) :
___________________________________ :
Through March 31, 2000, Allegheny Energy, Inc.
(Allegheny) has made capital contributions to Allegheny
Ventures, Inc. ("Allegheny Ventures") and its subsidiaries
totaling $78,850,765. See attached consolidated financial
statements for the quarter ended March 31, 2000. During the
first quarter of 2000, Allegheny Ventures performed studies
and completed preliminary development activities in connection
with the ownership of companies in the areas of emerging
technologies closely related to Allegheny's core business.
Other specific activities performed by Allegheny Ventures
during the first quarter of 2000 are shown below.
I. Description of Activities
A. Consulting and Engineering Services
Allegheny Ventures provided engineering,
consulting, procurement and distributed generation
services to nonaffiliated entities and completed
development and marketing activities associated with
the provision of such services to nonaffiliated
entities.
B. Energy Management Services - APS Cogenex
As previously reported, Allegheny Ventures and EUA-
Cogenex agreed to cease joint marketing activities
for energy management services under the terms of
their joint venture agreement for APS Cogenex.
Pending resolution of outstanding jobs, the APS
Cogenex joint venture continues to exist.
Allegheny Ventures developed energy management
products and services to be offered to customers in
and around the service territory of its affiliates.
<PAGE>
C. EWGs and FUCOs
Allegheny Ventures, through the Latin American
Energy and Electricity Fund I, L.P., a limited
partnership formed to invest in and develop
electric energy opportunities in Latin America,
continued to investigate FUCO investments. No new
investments were made in the first quarter. As of
the end of the first quarter of 2000, Allegheny
Ventures has invested $4,219,120 in LAEEF.
D. Real Estate Activities
In March, 1999, Allegheny Ventures entered into
four agreements, all subject to SEC approval, to
purchase property adjacent to property on which
Allegheny's and Potomac Edison's Corporate Centers
are located. Allegheny Ventures made a down
payment into an escrow account in connection with
the purchase of one of the properties. Allegheny
Ventures has decided not to purchase these
properties, and they were purchased by an affiliate
in early 2000. On November 8, 1999, Allegheny and
Allegheny Ventures withdrew the Post-Effective
Amendment in connection with this matter. The
deposit payment made by Allegheny Ventures was
repaid, with interest, in December 1999.
Allegheny Ventures is engaged in various land
management activities related to unused real
property owned by its affiliates, including
investigation of a joint venture with a real estate
developer to develop and market a portion of these
properties.
E. Development Activities
Allegheny Ventures is investigating the
development of distributed generation and forming
strategic alliances with equipment manufacturers
and suppliers.
II. Guarantees or assumption of liabilities by
Allegheny on behalf of Allegheny Ventures or its
subsidiaries
As of January 1, 2000, AYP Energy Inc. revoked
all guarantees which were provided by Allegheny Energy
in support of trading. As of March 31, 2000, in
connection with AYP Energy's trading activities,
Allegheny Energy had no guarantees of support outstanding.
III. Services Provided by Allegheny Ventures to Associate
Companies
<PAGE>
Except as stated above, Allegheny Ventures did
not provide any services to associate companies
during the first quarter of 2000.
IV. Factoring Activities
Allegheny Ventures did not perform any
activities associated with the factoring of
accounts receivable in the first quarter of 2000.
ALLEGHENY ENERGY, INC.
By /s/ Thomas K. Henderson
Thomas K. Henderson
Vice President
ALLEGHENY VENTURES, INC.
By /s/ Thomas K. Henderson
Thomas K. Henderson
Vice President
Dated: May 30, 2000
