<PAGE> File No. 70-8527
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
POST-EFFECTIVE 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
addresses of principal executive offices)
* * *
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
(Name of top registered holding company
parent of each applicant or declarant)
* * *
A. A. Pena, Treasurer
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
John F. DiLorenzo, Jr., Associate General Counsel
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
(Names and addresses of agents for service)
<PAGE>
Ohio Valley Electric Corporation ("OVEC") hereby amends its
Application-Declaration on Form U-1 in File No. 70-8527, as
follows:
ITEM 1. DESCRIPTION OF PROPOSED TRANSACTION.
Under the Commission's Order dated December 28, 1994 in this
file, OVEC was authorized to incur short-term indebtedness through
the issuance and sale of notes to banks in an aggregate amount not
to exceed $25,000,000 outstanding at any one time, from time to
time prior to January 1, 1997, as funds may be required, provided
that no such notes shall mature later than June 30, 1997.
OVEC hereby requests that said authorization be extended
through December 31, 2001.
Notes will mature not more than 270 days after the date of
issuance or renewal thereof; provided that no note will mature
later than June 30, 2002. Notes will bear interest at an annual
rate not greater than the bank's prime commercial rate in effect
from time to time. Such credit arrangements may require the pay-
ment of a fee that is not greater than 1/5 of 1% per annum of the
size of the line of credit made available by the bank and the main-
tenance of additional balances of not greater than 20% of the line
of credit.
The maximum effective annual interest cost under any of the
above arrangements, assuming full use of the line of credit, will
not exceed 125% of the prime commercial rate in effect from time to
time, or not more than 10.625% on the basis of a prime commercial
rate of 8.5%.
The proceeds of the short-term debt incurred by OVEC will be
added to its general funds and used to pay its general obligations
and for other corporate purposes.
Certificates of notification pursuant to rule 24 would con-
tinue to be filed quarterly when there are outstanding borrowings
in any quarter.
Compliance with Rule 54
Rule 54 provides that in determining whether to approve cer-
tain transactions other than those involving exempt wholesale
generators ("EWG") or foreign utility companies ("FUCO"), as de-
fined in the 1935 Act, the Commission will not consider the effect
of the capitalization or earnings of any subsidiary which is an EWG
or FUCO if Rule 53(a), (b) and (c) are satisfied. The requirements
of Rule 53(a), (b) and (c) are satisfied.
Rule 53(a)(1): As of June 30, 1996, AEP, through its sub-
sidiary, AEP Resources, Inc., had invested $3,265,000 in AEPRI.
This investment represents less than 1% of $1,438,761,000, the
average of the consolidated retained earnings of AEP reported on
Form 10-K or Form 10-Q, as applicable, for the four consecutive
quarters ended June 30, 1996.
Rule 53(a)(2): AEPRI will maintain books and records and make
available the books and records required by Rule 53(a)(2).
Rule 53(a)(3): No more than 2% of the employees of the oper-
ating subsidiaries of AEP will, at any one time, directly or
indirectly, render services to AEPRI.
Rule 53(a)(4): AEP has submitted and will continue to submit
a copy of Item 9 and Exhibits G and H of AEP's Form U5S to each of
the public service commissions having jurisdiction over the retail
rates of AEP's operating utility subsidiaries.
Rule 53(b): In addition, (i) neither AEP nor any subsidiary
of AEP is the subject of any pending bankruptcy or similar pro-
ceedings; (ii) AEP's average consolidated retained earnings for the
four most recent quarterly periods ($1,438,761,000) represented an
increase of approximately $38,153,000 (or 0.3%) in the average con-
solidated retained earnings from the previous four quarterly
periods ($1,400,608,000); and (iii) for the year ended December 31,
1995, there were no losses attributable to AEP's direct or indirect
investments in AEPRI other than $93,000 in preliminary development
start-up costs.
Rule 53(c): Rule 53(c) is inapplicable because the require-
ments of Rule 53(a) and (b) have been satisfied.
ITEM 2. FEES, COMMISSIONS AND EXPENSES.
No fees, commissions or other expenses are to be paid or
incurred, directly or indirectly, by OVEC or any associated company
in connection with the proposed transactions, other than fees and
expenses to be billed at cost by the American Electric Power
Service Corporation and not to exceed $2,000 in the aggregate.
ITEM 5. PROCEDURE.
It is requested, pursuant to Rule 23(c) of the Rules and Regu-
lations of the Commission, that the Commission's Order granting
this Post-Effective Amendment to its Application or Declaration on
Form U-1 be issued on or before December 1, 1996. OVEC waives any
recommended decision by a hearing officer or by any other respon-
sible officer of the Commission and waives the 30-day waiting
period between the issuance of the Commission's Order and the date
it is to become effective, since it is desired that the Commis-
sion's Order, when issued, become effective forthwith. OVEC con-
sents to the Office of Public Utility Regulation assisting in the
preparation of the Commission's decision and/or Order in this
matter, unless the Office of Public Utility Regulation opposes the
matters covered by this Post-Effective Amendment to its Application
or Declaration on Form U-1.
SIGNATURES
Pursuant to the requirements of the Public Utility
Holding Company Act of 1935, the undersigned company has duly
caused this Post-Effective Amendment No. 1 to be signed on its
behalf by the undersigned thereunto duly authorized.
OHIO VALLEY ELECTRIC CORPORATION
By: G. P. Maloney
Vice President
Dated: October 22, 1996
