<PAGE>
Page 1 of 14
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended September 30, 1997
Commission File Number 1-5164
MONONGAHELA POWER COMPANY
(Exact name of registrant as specified in its charter)
Ohio 13-5229392
(State of Incorporation) (I.R.S. Employer Identification No.)
1310 Fairmont Avenue, Fairmont, West Virginia 26554
Telephone Number - 304-366-3000
The registrant (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months and (2) has been subject to such
filing requirements for the past 90 days.
At November 13, 1997, 5,891,000 shares of the Common Stock
($50 par value) of the registrant were outstanding, all of which
are held by Allegheny Energy, Inc., the Company's parent.
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MONONGAHELA POWER COMPANY
Form 10-Q for Quarter Ended September 30, 1997
Index
Page
No.
PART I--FINANCIAL INFORMATION:
Statement of income - Three and nine months ended
September 30, 1997 and 1996 3
Balance sheet - September 30, 1997
and December 31, 1996 4
Statement of cash flows - Nine months ended
September 30, 1997 and 1996 5
Notes to financial statements 6-8
Management's discussion and analysis of financial
condition and results of operations 9-13
PART II--OTHER INFORMATION 14
<PAGE>
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MONONGAHELA POWER COMPANY
Statement of Income
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
(Thousands of Dollars)
ELECTRIC OPERATING REVENUES:
<S> <C> <C> <C> <C>
Residential $ 48,677 $ 48,253 $ 148,640 $ 155,866
Commercial 31,682 31,431 89,640 91,737
Industrial 49,690 47,811 145,052 152,013
Wholesale and other, including affiliates 22,593 20,655 67,825 66,893
Bulk power transactions, net 5,598 4,017 13,964 13,401
Total Operating Revenues 158,240 152,167 465,121 479,910
OPERATING EXPENSES:
Operation:
Fuel 36,363 33,073 104,023 105,268
Purchased power and exchanges, net 21,600 23,616 71,797 74,692
Deferred power costs, net 16 (2,729) (8,867) 1,108
Other 19,570 19,827 55,331 57,400
Maintenance 15,060 18,136 50,869 56,017
Restructuring charges - 2,087 - 15,931
Depreciation 14,355 13,881 43,018 41,589
Taxes other than income taxes 10,039 10,223 30,088 30,682
Federal and state income taxes 12,744 9,625 36,188 27,160
Total Operating Expenses 129,747 127,739 382,447 409,847
Operating Income 28,493 24,428 82,674 70,063
OTHER INCOME AND DEDUCTIONS:
Allowance for other than borrowed funds
used during construction 181 97 470 185
Other income, net 4,097 1,808 7,450 5,118
Total Other Income and Deductions 4,278 1,905 7,920 5,303
Income Before Interest Charges 32,771 26,333 90,594 75,366
INTEREST CHARGES:
Interest on long-term debt 8,958 9,122 27,199 27,533
Other interest 572 405 1,767 1,427
Allowance for borrowed funds used during
construction (216) (111) (559) (212)
Total Interest Charges 9,314 9,416 28,407 28,748
NET INCOME $ 23,457 $ 16,917 $ 62,187 $ 46,618
</TABLE>
See accompanying notes to financial statements.
<PAGE>
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MONONGAHELA POWER COMPANY
Balance Sheet
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
ASSETS: (Thousands of Dollars)
<S> <C> <C>
Property, Plant, and Equipment:
At original cost, including $44,368,000
and $33,366,000 under construction $ 1,921,348 $ 1,879,622
Accumulated depreciation (830,777) (790,649)
1,090,571 1,088,973
Investments:
Allegheny Generating Company - common stock at equity 53,818 54,798
Other 292 346
54,110 55,144
Current Assets:
Cash 149 2,290
Accounts receivable:
Electric service, net of $966,000 and $1,949,000
uncollectible allowance 65,268 65,615
Affiliated and other 14,280 13,365
Materials and supplies - at average cost:
Operating and construction 18,888 19,785
Fuel 18,646 16,694
Prepaid taxes 19,229 18,331
Other 3,702 10,693
140,162 146,773
Deferred Charges:
Regulatory assets 165,282 171,692
Unamortized loss on reacquired debt 14,568 15,256
Other 15,445 8,917
195,295 195,865
Total Assets $ 1,480,138 $ 1,486,755
CAPITALIZATION AND LIABILITIES:
Capitalization:
Common stock $ 294,550 $ 294,550
Other paid-in capital 2,441 2,441
Retained earnings 247,533 215,221
544,524 512,212
Preferred stock 74,000 74,000
Long-term debt and QUIDS 455,501 474,841
1,074,025 1,061,053
Current Liabilities:
Short-term debt 38,450 31,139
Long-term debt due within one year 19,600 15,500
Accounts payable 1,044 12,997
Accounts payable to affiliates 18,586 10,170
Taxes accrued:
Federal and state income 668 3,788
Other 19,106 21,464
Deferred power costs 3,587 12,419
Interest accrued 11,905 8,234
Restructuring liability 1,075 13,997
Other 6,763 13,613
120,784 143,321
Deferred Credits and Other Liabilities:
Unamortized investment credit 18,834 20,445
Deferred income taxes 230,239 225,841
Regulatory liabilities 17,464 18,554
Other 18,792 17,541
285,329 282,381
Total Capitalization and Liabilities $ 1,480,138 $ 1,486,755
</TABLE>
See accompanying notes to financial statements
<PAGE>
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MONONGAHELA POWER COMPANY
Statement of Cash Flows
<TABLE>
<CAPTION>
Nine Months Ended
September 30
1997 1996
(Thousands of Dollars)
CASH FLOWS FROM OPERATIONS:
<S> <C> <C>
Net income $ 62,187 $ 46,618
Depreciation 43,018 41,589
Deferred investment credit and income taxes, net 13,626 (350)
Deferred power costs, net (8,867) 1,108
Unconsolidated subsidiaries' dividends in excess of earnings 1,034 1,152
Allowance for other than borrowed funds used
during construction (470) (185)
Restructuring liability (12,922) 11,119
Changes in certain current assets and
liabilities:
Accounts receivable, net (568) 10,480
Materials and supplies (1,055) 3,572
Other current assets/liabilities (6,550) 12,888
Deferred charges (4,179) 4,239
Accounts payable (3,537) (7,848)
Taxes accrued (5,478) (6,941)
Interest accrued 3,671 3,420
Other, net 549 8,293
80,459 129,154
CASH FLOWS FROM INVESTING:
Construction expenditures (less allowance for
equity funds used during construction) (44,536) (40,290)
CASH FLOWS FROM FINANCING:
Retirement of long-term debt (15,500) (18,500)
Short-term debt, net 7,311 (21,169)
Dividends on capital stock:
Preferred stock (3,778) (3,778)
Common stock (26,097) (37,032)
(38,064) (80,479)
NET CHANGE IN CASH (2,141) 8,385
Cash at January 1 2,290 117
Cash at September 30 $ 149 $ 8,502
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the quarter for:
Interest (net of amount capitalized) $27,949 $24,304
Income taxes 24,218 22,854
</TABLE>
See accompanying notes to financial statements.
<PAGE>
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MONONGAHELA POWER COMPANY
Notes to Financial Statements
1. The Company's Notes to Financial Statements in the Allegheny
Power System companies' combined Annual Report on Form 10-K
for the year ended December 31, 1996, should be read with the
accompanying financial statements and the following notes.
With the exception of the December 31, 1996, balance sheet in
the aforementioned annual report on Form 10-K, the
accompanying financial statements appearing on pages 3
through 5 and these notes to financial statements are
unaudited. In the opinion of the Company, such financial
statements together with these notes, contain all adjustments
(which consist only of normal recurring adjustments)
necessary to present fairly the Company's financial position
as of September 30, 1997, the results of operations for the
three and nine months ended September 30, 1997 and 1996, and
cash flows for the nine months ended September 30, 1997 and
1996.
2. The Statement of Income reflects the results of past
operations and is not intended as any representation as to
future results. For purposes of the Balance Sheet and
Statement of Cash Flows, temporary cash investments with
original maturities of three months or less, generally in the
form of commercial paper, certificates of deposit, and
repurchase agreements, are considered to be the equivalent of
cash.
3. The Company owns 27% of the common stock of Allegheny
Generating Company (AGC), and affiliates of the Company own
the remainder. AGC owns an undivided 40% interest, 840 MW,
in the 2,100-MW pumped-storage hydroelectric station in Bath
County, Virginia, operated by the 60% owner, Virginia
Electric and Power Company, a nonaffiliated utility.
Following is a summary of income statement information for
AGC:
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
(Thousands of Dollars)
Electric operating revenues $19,664 $20,825 $60,288 $62,757
Operation & maintenance expense 856 1,299 3,612 3,633
Depreciation 4,284 4,290 12,852 12,870
Taxes other than income taxes 1,185 1,174 3,581 3,582
Federal income taxes 3,109 3,296 9,374 10,002
Interest charges 3,888 4,081 11,765 12,490
Other income, net (9,054) (l) (9,055) (4)
Net income $15,396 $ 6,686 $28,159 $20,184
The Company's share of the equity in earnings above was $4.2
million and $1.8 million for the three months ended September
30, 1997 and 1996, respectively, and $7.6 million and $5.4
million for the nine months ended September 30, 1997 and
1996, respectively, and was included in other income, net, on
the Statement of Income. The increases in other income,
<PAGE>
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net, and the resulting increases in net income for the 1997
periods was due to an interest refund on a tax-related
contract settlement.
4. On April 7, 1997, Allegheny Power System, Inc. (Allegheny
Power) and DQE, Inc. (DQE), parent company of Duquesne Light
Company in Pittsburgh, Pennsylvania, announced that they have
agreed to merge in a tax-free, stock-for-stock transaction.
The combined company will be called Allegheny Energy, Inc.
(Allegheny Energy). It is expected that Allegheny Energy
will continue to be operated as an integrated electric
utility holding company and that the regulated electric
utility companies will continue to exist as separate legal
entities, including the Company and Duquesne Light Company.
The merger is conditioned, among other things, upon the
approval of each company's shareholders, the Pennsylvania
Public Utility Commission (PUC), the Securities and Exchange
Commission (SEC), the Federal Energy Regulatory Commission
(FERC), the Nuclear Regulatory Commission (NRC), and the
Department of Justice/Federal Trade Commission under the
Hart, Scott, Rudino legislation. Additionally, Allegheny
Power has requested the Maryland Public Service Commission
(PSC) to indicate its approval of the issuance of additional
Allegheny Power stock to accomplish the transaction. The
companies have established a schedule to obtain all
regulatory approvals by June 1, 1998. On May 2, 1997,
Allegheny Power filed a registration statement with the SEC
on Form S-4 containing a joint proxy statement/prospectus
with DQE concerning the merger and the transactions
contemplated thereby. In late June, the S-4 became effective
allowing Allegheny Power and DQE to pursue shareholder
approval for the proposed merger that would create Allegheny
Energy. Allegheny Power and DQE each held a separate
shareholder meeting on August 7, 1997, at which the
combination of the two companies was decisively approved by
the shareholders of both companies. At Allegheny Power's
meeting, the shareholders also decisively approved the change
in Allegheny Power's name to Allegheny Energy, Inc.
(Allegheny Energy).
On August 1, 1997, Allegheny Power and DQE jointly filed
requests for merger approval with the PUC and FERC, DQE filed
the necessary approval requests with the NRC, and Allegheny
Power filed its request with the PSC for approval to issue
Allegheny Power stock. The PUC has established a schedule of
proceedings which is expected to result in an approval order
by the end of May 1998. The FERC has not scheduled hearings.
Absent such hearings, Allegheny Energy expects a FERC order
on or before the end of May 1998. The PSC instituted a
proceeding against The Potomac Edison Company, the Company's
Maryland public utility affiliate, to examine the effect of
the merger on Maryland customers for which a final
determination is expected by May 1, 1998.
On September 16, 1997, Allegheny Power officially changed its
name to Allegheny Energy, Inc. by filing the appropriate
papers in Maryland. Allegheny Energy began trading on the
New York Stock Exchange under its new symbol, AYE, on October
1, 1997.
<PAGE>
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On September 29, 1997, the City of Pittsburgh filed an
antitrust and conspiracy lawsuit in Federal District Court
for the Western District of Pennsylvania against Allegheny
Power, the Company's Pennsylvania affiliate, West Penn Power
Company (West Penn), DQE, and Duquesne Light Company. The
verified complaint alleges eight counts, two of which are
claimed violations of the federal antitrust statutes and six
are state law claims. The relief sought includes a request
that the proposed merger between Allegheny Power and DQE be
stopped, and a request for unspecified monetary damages
relating to alleged collusion by the two companies in their
actions dealing with proposals to provide electric service to
the city's redevelopment zones. On October 27, 1997,
Allegheny Power, West Penn, DQE, and Duquesne Light Company
filed motions to dismiss the complaint. While Allegheny
Energy cannot predict the outcome of this action, it believes
the suit is without merit.
5. On August 1, 1997, in combination with Allegheny Power's
merger approval filing, the Company's Pennsylvania affiliate,
West Penn, filed with the PUC a comprehensive stand-alone
restructuring plan to implement full customer choice of
electric generation suppliers as required by the Customer
Choice Act. The filing included an unbundling of West Penn's
electric service rates into their generation, transmission
and distribution components, a plan for eventual replacement
of the existing Power Supply Agreement (PSA) under which the
Company and its existing two utility affiliates, share
capacity, energy, capacity reserves and transmission
resources with a more efficient structure, and a plan for
recovery of stranded costs through a Competitive Transition
Charge (CTC).
6. Restructuring charges in the first nine months of 1996 ($9.5
million, net of tax) include expenses associated with a
reorganization, which is essentially complete.
7. For the most part, regulatory assets and liabilities are not
included in rate base. Income tax regulatory
assets/(liabilities), net of $139 million at September 30,
1997, are primarily related to investments in electric
facilities and under a continuing regulated environment,
would be recovered over a period of from 20 to 40 years. The
remaining recovery period for items other than income taxes,
is from three to seven years. See page 13 for information
concerning a West Virginia Public Service Commission Task
Force and an Ohio legislative committee created to study
electric utility restructuring and competition.
8. The Company has spent considerable time and effort over the
past several years on the issue of the year 2000 software
compliance, and the effort is continuing. Certain software
has already been made year 2000 compliant by upgrades and
replacement, and analysis is continuing on others, in
accordance with a schedule planned to permit the Company to
process information in the year 2000 and beyond without
significant problems. Expenditures for the software
modifications and upgrades are not expected to have a
material impact on the Company's results of operations or
financial position.
<PAGE>
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MONONGAHELA POWER COMPANY
Management's Discussion and Analysis of Financial Condition
and Results of Operations
COMPARISON OF THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1997
WITH THIRD QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 1996
Review of Operations
NET INCOME
Net income for the third quarter and first nine months of
1997 and 1996, and the after-tax restructuring charges included
in the 1996 periods are shown below.
Net Income
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
(Millions of Dollars)
Net Income as Reported $23.5 $16.9 $62.2 $46.6
Restructuring Charges - 1.2 - 9.5
Net Income Adjusted $23.5 $18.1 $62.2 $56.1
The increase in third quarter net income, before
restructuring charges, was primarily due to a 10% increase in
kilowatt-hour (kWh) sales to industrial customers, a reduction of
expenses achieved through restructuring efforts and other cost
controls, and an interest refund on a tax-related contract
settlement by the Company's 27% owned subsidiary, Allegheny
Generating Company (AGC), recorded in other income as increased
equity in earnings of AGC. See Note 3 to the Financial
Statements for additional information. KWh sales to residential
and commercial customers were also up slightly for the quarter.
The increase in year-to-date net income, before
restructuring charges, resulted from a reduction of expenses
achieved through restructuring efforts and other cost controls,
and increased equity in earnings from AGC. These increases were
offset by a 3% decrease in kWh sales to residential customers due
to mild first quarter winter weather (heating degree days 9%
below normal and 16% below the first quarter of 1996) and the
mild summer weather. Commercial kWh sales were down .4% for the
first nine months of 1997.
SALES AND REVENUES
Retail kWh sales in the third quarter to residential,
commercial, and industrial customers increased .4%, 1%, and 10%,
respectively, for a net increase of 5%. In the first nine
months, kWh sales to residential and commercial customers
decreased 3% and .4%, respectively, while industrial
<PAGE>
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sales increased .5%, for a net decrease of 1%. As discussed
above, residential kWh sales, which are more weather sensitive
than the commercial and industrial classes, decreased in the
first nine months due to the mild weather. Commercial kWh
sales also decreased in the first nine months primarily because
of the mild weather. Industrial kWh sales increased for the
third quarter due primarily to increased sales to the iron and
steel and chemical customer groups. The year-to-date increase
in kWh sales to industrial customers was due primarily to
increased sales to the lumber products customer groups. The
year-to-date decrease in industrial revenue was primarily due
to a decrease in the fuel and energy cost component of
industrial sales.
The changes in revenues from sales to residential,
commercial, and industrial customers resulted from the following:
Change from Prior Periods
Quarter Nine Months
(Millions of Dollars)
Fuel and energy cost adjustment clauses* $ .4 $(12.1)
Increased (decreased) kWh sales 2.0 (4.1)
Other .2 (.1)
Change in retail revenues $2.6 $(16.3)
*Changes in revenues from fuel and energy cost adjustment
clauses have little effect on net income. Changes in the
costs of fuel, purchased power, and certain other costs, and
changes in revenues from sales to other utilities, including
transmission services, have had little effect on net income
because such changes have been passed on to customers by
adjustment of customer bills through fuel and energy cost
adjustment clauses.
The increase in wholesale and other revenues for the
third quarter and first nine months of 1997 was due primarily to
an increase in sales of capacity and transmission services
provided to affiliated companies, offset in part by decreased
sales of energy and spinning reserve to affiliated companies.
All of the Company's wholesale customers have signed contracts to
remain as customers until December 1, 2000.
Revenues from bulk power transactions consist of the
following items:
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
(Millions of Dollars)
Revenues:
From transmission services $2.4 $3.2 $ 7.6 $ 9.8
From sales of Company generation 3.2 .8 6.4 3.6
Total $5.6 $4.0 $14.0 $13.4
Revenues from transmission services decreased primarily
due to reduced demand, primarily because of mild weather. The
increases in sales of Company generation resulted primarily from
<PAGE>
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increased sales to brokers and power marketers. About 90% of the
aggregate benefits from bulk power transactions are passed on to
retail customers through fuel and energy adjustment clauses
(described above) and have little effect on net income.
OPERATING EXPENSES
Fuel expenses for the third quarter increased 10%
primarily due to an increase in kWh generated due to increased
bulk power sales from Company generation to brokers and power
marketers, increased sales to industrial customers, and higher
average fuel prices. For the first nine months of 1997, fuel
expenses decreased 1% due to an overall decrease in kWh
generated. Fuel expenses are primarily subject to deferred power
cost accounting procedures to match fuel and energy cost
adjustment clause revenues, with the result that changes in fuel
expenses have little effect on net income.
"Purchased power and exchanges, net" represents power
purchases from and exchanges with nonaffiliated companies and
purchases from qualified facilities under the Public Utility
Regulatory Policies Act of 1978 (PURPA), capacity charges paid to
Allegheny Generating Company (AGC), an affiliate partially owned
by the Company, and other transactions with affiliates made
pursuant to a power supply agreement, whereby each company uses
the most economical generation available in the Allegheny Energy
System at any given time, and consists of the following items:
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
(Millions of Dollars)
Nonaffiliated transactions:
Purchased power:
From PURPA generation* $15.4 $16.6 $51.3 $50.7
Other 2.4 2.0 6.2 7.8
Power exchanges, net (.6) - .1 .9
Affiliated transactions:
AGC capacity charges 4.3 5.0 14.0 15.3
Energy and spinning reserve
charges .1 - .2 -
Purchased power and
exchanges, net $21.6 $23.6 $71.8 $74.7
*PURPA cost per kWh $.050 $.053 $.053 $.053
Other purchased power decreased in the nine months ended
September 30, 1997 because of decreased demand due to decreased
sales to retail customers. The cost of power purchased,
including power from PURPA generation and affiliated
transactions, is mostly recovered from customers currently
through the regular fuel and energy cost recovery procedures
followed by the Company's regulatory commissions, and is
primarily subject to deferred power cost accounting procedures
with the result that changes in such costs have little effect on
net income.
The decreases in other operation expense for the three
and nine months ended September 1997 resulted primarily from
decreases in salaries and wages and employee benefit costs
achieved through restructuring efforts.
<PAGE>
- 12 -
Maintenance expenses represent costs incurred to maintain
the power stations, the transmission and distribution (T&D)
system, and general plant, and reflect routine maintenance of
equipment and rights-of-way as well as planned major repairs and
unplanned expenditures, primarily from forced outages at the
power stations and periodic storm damage on the T&D system.
Variations in maintenance expense result primarily from unplanned
events and planned major projects, which vary in timing and
magnitude depending upon the length of time equipment has been in
service without a major overhaul and the amount of work found
necessary when the equipment is dismantled. Maintenance expenses
decreased $3.1 million and $5.1 million for the third quarter and
first nine months of 1997, respectively, due primarily to reduced
expenses achieved through restructuring efforts and other cost
controls.
Restructuring charges in the third quarter and first nine
months of 1996 include expenses associated with a reorganization,
which is essentially complete.
The increases in depreciation expense for the third
quarter and first nine months of 1997 resulted from additions to
electric plant. Future depreciation expense increases are
expected to be less than historical increases because of reduced
levels of planned capital expenditures.
The net increases in federal and state income taxes in
the three and nine-month periods resulted primarily from
increases in income before taxes. The nine-month period increase
in income before taxes was primarily related to restructuring
charges recorded in 1996.
The increases in other income, net, of $2.3 million for
the third quarter and first nine months of 1997, respectively,
were primarily due to an interest refund on a tax-related
contract settlement received by the Company's subsidiary,
Allegheny Generating Company.
Other interest expense reflects changes in the levels of
short-term debt maintained by the Company throughout the year, as
well as the associated rates.
Financial Condition and Requirements
The Company's discussion on Financial Condition and
Requirements and Competition in Core Business in the Allegheny
Power System companies' combined Annual Report on Form 10-K for
the year ended December 31, 1996, should be read with the
following information.
In the normal course of business, the Company is subject
to various contingencies and uncertainties relating to its
operations and construction programs, including cost recovery in
the regulatory process, laws, regulations and uncertainties
related to environmental matters, legal actions, restructuring of
the electric utility industry, and, as described in Note 4 to the
Financial Statements, merger activities.
The Company expects to use exchange-traded and over-the-
counter futures, options, and swap contracts both to hedge its
exposure to changes in electric power prices and for trading
purposes. The risks to which the Company is exposed include
underlying price volatility, credit risk, and variations in cash
flows, among others. The Company has implemented risk
<PAGE>
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management policies and procedures consistent with industry
practices and Company goals.
The Company is working actively within its states to
advance customer choice. However, the Company believes that
federal legislation is necessary to ensure that electric
restructuring is implemented consistently across state and
regional boundaries so that all electric customers have an equal
opportunity to benefit from competition and customer choice by a
date certain. Federal legislation is also needed to remove
barriers to competition, including the Public Utility Holding
Company Act of 1935 (PUHCA) and the Public Utility Regulatory
Policies Act of 1978 (PURPA).
The West Virginia Public Service Commission has created a
task force to study electric utility restructuring and
competition. On October 15, the group issued a final report
addressing various issues of competition and customer choice.
The task force, which includes the Company as a member, will
continue to further discuss issues relevant to electric utility
competition.
A House and Senate legislative committee in Ohio is
developing a report on electric utility restructuring and
competition. The Public Utilities Commission of Ohio continues
roundtable discussion on universal service and stranded costs.
<PAGE>
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MONONGAHELA POWER COMPANY
Part II - Other Information to Form 10-Q
for Quarter Ended September 30, 1997
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) (27) Financial Data Schedule
(b) No reports on Form 8-K were filed on behalf of the
Company for the quarter ended September 30, 1997.
Signature
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
MONONGAHELA POWER COMPANY
/s/ THOMAS J. KLOC
Thomas J. Kloc
Controller
(Chief Accounting Officer)
November 13, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 149
<SECURITIES> 0
<RECEIVABLES> 80,514
<ALLOWANCES> 966
<INVENTORY> 37,534
<CURRENT-ASSETS> 140,162
<PP&E> 1,921,348
<DEPRECIATION> 830,777
<TOTAL-ASSETS> 1,480,138
<CURRENT-LIABILITIES> 120,784
<BONDS> 455,501
0
74,000
<COMMON> 294,550
<OTHER-SE> 249,974
<TOTAL-LIABILITY-AND-EQUITY> 1,480,138
<SALES> 465,121
<TOTAL-REVENUES> 465,121
<CGS> 273,153
<TOTAL-COSTS> 346,259
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 28,407
<INCOME-PRETAX> 98,375
<INCOME-TAX> 36,188
<INCOME-CONTINUING> 62,187
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 62,187
<EPS-PRIMARY> 0.00<F1>
<EPS-DILUTED> 0.00<F1>
<FN>
<F1>All common stock is owned by parent, no EPS required.
</FN>
</TABLE>
