File No. 70-9567
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 4
TO
FORM U-1
APPLICATION/DECLARATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
_________________________________
Name of company filing this statement and address of
principal executive offices
Allegheny Energy, Inc.
10435 Downsville Pike
Hagerstown, Maryland 21740
Monongahela Power Company
(d/b/a Allegheny Power)
1310 Fairmont Avenue
Fairmont, West Virginia 26554
__________________________________
Name of top registered holding company
Allegheny Energy, Inc.
10435 Downsville Pike
Hagerstown, Maryland 21740
Names and addresses of agents for service
The Commission is requested to send copies of all notices,
orders and communications in connection with this Application/
Declaration to:
Thomas K. Henderson, Esq.
Vice President and General Counsel
Allegheny Energy, Inc.
10435 Downsville Pike
Hagerstown, MD 21740
<PAGE>
Applicants hereby amend Item No. 1, Description of the
Proposed Transaction, by replacing the following section:
A. Introduction
1. Authorizations Requested
Allegheny Energy, Inc. ("Allegheny"), a registered
holding company under the Public Utility Holding Company Act
of 1935, as amended ("Act"), seeks authorization to acquire,
indirectly through Monongahela Power Company d/b/a Allegheny
Power, a wholly owned electric utility subsidiary of
Allegheny ("Monongahela Power"), all of the West Virginia
based electric and gas utility assets and properties owned
by UtiliCorp United Inc. ("UtiliCorp"),1 an electric and gas
utility based in Kansas City, Missouri ("Transaction").
Additionally, the applicants seek authorization to retain
the gas system.2
Applicants hereby amend Item No. 3, Applicable Statutory
Provisions by adding the following sentence to replacing
Section 2i(1) with the following:
Monongahela Power and West Virginia Power are
interconnected and have the ability to exchange power via a
contract path created by the Monongahela Power - American
Electric Power contract. Additionally, Monongahela Power is
currently studying the costs associated with constructing a
substation or interconnection between its system and West
Virginia Power's system. The Applicants intend to either
extend the existing contract with American Electric Power or
construct a direct interconnection between the systems prior
to the expiration of the contract.
The Commission has previously indicated that a single
integrated system exists even based solely on a planned,
future interconnection, provided that such physical
interconnection is "contemplated or ... possible within the
reasonably near future" and not just something that "might
occur in the remote future, and whose occurrence has not
been foreshadowed by any facts shown in the record."3 In
the Matter of Cities Service Power & Light Corporation,4 the
Commission held that the integration standard was met where
______________________________
1 UtiliCorp does business in West Virginia as West
Virginia Power.
2 The purchase of utility assets is subject to approval
by the West Virginia Public Service Commission and as such,
the acquisition falls within Section 9(b) of the Act and no
approval by this Commission is required.
3 In the Matter of the North American Company and Its
Subsidiaries, HCAR No. 4505 (Apr. 15, 1942). See Also, In
the Matter of Hudson River Power Corporation, HCAR No. 2415
(Dec. 9, 1940) (integration standard not met where "the
record discloses no definite plan for bringing about any
such interconnection"); In the Matter of Cities Service
Power & Light Corporation, HCAR No. 5256 (Aug. 30, 1944)
(integration standard met where "Derby contemplates the
construction of such interconnection facilities").
4 HCAR No. 5256 (Aug. 30, 1944)
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the applicant was contemplating the construction of
interconnection facilities. Similarly, in approving the
application of New Century Energies to combine the then
Public Service Company of Colorado and Southwestern Public
Service, the Commission approved the application
notwithstanding the fact that no actual interconnection
existed - only a proposed interconnection in five years.5
In this matter, the contiguous nature of the
Monongahela Power and West Virginia Power service areas,
together with Monongahela Power's existing contract path to
West Virginia Power via American Electric Power and the
applicant's commitment to continue the contract or directly
interconnect the systems, fully satisfies the Commission's
requirements.
SIGNATURE
Pursuant to the requirements of the Public Utility
Holding Company Act of 1935, the undersigned company has
duly caused this statement to be signed on its behalf by the
undersigned thereunto duly authorized.
MONONGAHELA POWER COMPANY
By /s/ THOMAS K. HENDERSON
Thomas K. Henderson
Vice President
Dated: December 23, 1999
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5 See New Century Energies, HCAR No.26748 (August 1, 1997).
