<PAGE> File No. 70-8335
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1
TO
FORM U-1
APPLICATION OR DECLARATION
under the
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
* * *
OHIO VALLEY ELECTRIC CORPORATION
P.O. Box 468, Piketon, Ohio 45661
(Name of company filing this statement and
address of principal executive offices)
* * *
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
ALLEGHENY POWER SYSTEM, INC.
12 East 49th Street, New York, New York 10017
(Name of top registered holding company
parent of each applicant or declarant)
* * *
G. P. Maloney, Executive Vice President
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
A. Joseph Dowd, General Counsel
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
(Names and addresses of agents for service)
<PAGE>
The undersigned Ohio Valley Electric Corporation ("OVEC")
hereby amends its Application or Declaration on Form U-1 in File
No. 70-8335 as follows:
1. By adding the following paragraphs at the beginning of
ITEM 1. DESCRIPTION OF PROPOSED TRANSACTIONS:
"OVEC was organized in October, 1952 by fifteen
investor-owned utilities for the purpose of providing
the electric power requirements for the United States
Department of Energy's ("DOE") Portsmouth Area Uranium
Enrichment Plant (the "Portsmouth Facility"). The
fifteen utilities are all shareholders or affiliates of
shareholders of OVEC (the "Sponsoring Companies").
OVEC and the United States of America, acting by and
through the United States Atomic Energy Commission (now
the DOE), entered into a Power Agreement dated October
15, 1952 (the "Power Agreement"). The Power Agreement
requires the DOE to make payments to OVEC for power
delivered from the Kyger Creek Plant of OVEC and the
Clifty Creek Plant of IKEC to the DOE's Portsmouth
facility.
The Power Agreement establishes the quantity of
power the DOE is obligated to purchase and the cost of
that power. The fundamental purpose of the Power
Agreement is to give the DOE the right to purchase the
power generated by the two plants, for which right the
DOE pays for the costs associated with the plants. The
DOE has agreed to pay a demand charge for the full
contract quantity under the Power Agreement, although
from time to time and to various extents that
requirement has been waived. The demand charge
encompasses OVEC's costs (except for fuel costs) and
the return on equity. The demand charge is payable
whether or not the energy is delivered. The DOE also
pays an energy charge which is based on the cost of
providing fuel consumed in the production of energy.
Electricity not used by the DOE is sold to the
Sponsoring Companies.
OVEC is subject to the rate jurisdiction of two
regulatory commissions: (1) The Public Utilities
Commission of Ohio (the "PUCO") and (2) the Federal
Energy Regulatory Commission (the "FERC"). The PUCO
regulates the retail electric service OVEC provides to
the Portsmouth Facility, which is supplied pursuant to
the Power Agreement. In addition, OVEC sells power and
energy not used at the Portsmouth Facility to the
Sponsoring Companies. Such sales are regulated by the
FERC.
IKEC is only subject to the rate jurisdiction of
the FERC. IKEC sells all of the power and energy it
produces to OVEC at wholesale."
2. By adding the following paragraphs at the end of ITEM
1. DESCRIPTION OF PROPOSED TRANSACTIONS:
"OVEC does not intend to use the services of Ohio
Power Company's Cook Coal Terminal for transloading
services, but intends to utilize Enron Transportation
Services, L. P.'s Terminal at Cora, Illinois. Indiana
Michigan Power Company's River Transportation Division
will not supply barge services to OVEC. OVEC has
already contracted with American Commercial Barge Line
Company and The Ohio River Company to provide such
services.
OVEC's Clifty Creek Plant will burn approximately
3,000,000 tons of Powder River Basin coal each year,
which will require up to 515 railcars. Attached hereto
and incorporated herein by reference as Appendix A is a
chart describing how OVEC has calculated the number of
railcars needed to support such a movement.
If OVEC enters into a lease, the purchase price of
the railcars would be paid by the lessor. If OVEC
purchases the railcars, OVEC would include such cost in
its rates.
The initial term of the lease would not exceed 15
years. The lease payments would depend on several
factors, including the term of the lease and the
prevailing pricing conditions regarding debt and equity
at the time the lease is negotiated. The lease
payments would be considered an energy charge under the
Power Agreement.
In order to minimize its costs associated with its
railcars, OVEC will sublease the railcars to its
associate companies and, during times of non-
utilization by OVEC and its associated companies, to
non-affiliates. OVEC will charge the associate
companies for the use of such railcars at cost pursuant
to Rules 90 and 91 of the 1935 Act.
The railcars would only be subleased if they were
unnecessary for OVEC/IKEC use during periods of idle
capacity. OVEC would sublease the railcars only if the
revenue generated by the sublease covered all variable
costs and makes a contribution to the fixed costs. The
reduction in fixed costs would benefit the customers of
OVEC."
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.
OHIO VALLEY ELECTRIC CORPORATION
By__/s/ G. P. Maloney___________
Vice President
Dated: March 15, 1994
railcars.ovc\amendu-1.#1
<PAGE>
APPENDIX A
Assumptions: Clifty Creek's western coal needs are approximate-
ly 3,000,000 tons per year.
One train set has 117 cars.
Each train set can cycle 60 times per year.
Deliveries will be consistent throughout the year.
<TABLE>
Volume No. of Trips No. of
in Tons Cars per Year Train Sets TOTAL VOLUME
<C> <C> <C> <C> <C> <C> <C> <C> <C>
120 x 117 x 60 x 3 = 2,527,200 tons per year
120 x 117 x 60 x 4 = 3,369,600 tons per year
</TABLE>
To move 3,000,000 tons of coal, OVEC needs 4 train sets.
(4 x 117 = 468 railcars)
10% spare railcars for maintenance purposes.
(468 x 1.1 = 515 railcars)
