Page 1 of 8
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 March 31, 1995
Commission file number 0-14688
ALLEGHENY GENERATING COMPANY
(Exact name of registrant as specified in its charter)
Virginia 13-3079675
(State of Incorporation) (I.R.S. Employer Identification No.)
12 East 49th Street, New York, New York 10017
Telephone number 212-752-2121
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 May 12, 1995, 1,000 shares of the Common Stock ($l.00 par value)
of the registrant were outstanding.
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ALLEGHENY GENERATING COMPANY
Form 10-Q for Quarter Ended March 31, 1995
Index
Page
No.
PART I - FINANCIAL INFORMATION:
Statement of income -
Three months ended March 31, 1995 and 1994 3
Balance sheet -
March 31, 1995 and December 31, 1994 4
Statement of cash flows -
Three months ended March 31, 1995 and 1994 5
Notes to financial statements 6
Management's discussion and analysis of financial
condition and results of operations 7
PART II - OTHER INFORMATION 8
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ALLEGHENY GENERATING COMPANY
Statement of Income
<TABLE>
<CAPTION>
Three Months Ended
March 31
1995 1994
(Thousands of Dollars)
<S> <C> <C>
ELECTRIC OPERATING REVENUES $22 096 $22 431
OPERATING EXPENSES:
Operation and maintenance expense 1 796 1 833
Depreciation 4 224 4 236
Taxes other than income taxes 1 299 1 340
Federal income taxes 3 223 3 513
Total Operating Expenses 10 542 10 922
Operating Income 11 554 11 509
OTHER INCOME AND DEDUCTIONS - 2
Income Before Interest Charges 11 554 11 511
INTEREST CHARGES:
Interest on long-term debt 4 199 4 194
Other interest 786 232
Total Interest Charges 4 985 4 426
NET INCOME $ 6 569 $ 7 085
See accompanying notes to financial statements.
</TABLE>
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ALLEGHENY GENERATING COMPANY
Balance Sheet
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
(Thousands of Dollars)
ASSETS
Property, Plant, and Equipment
At original cost, including $982,000
<S> <C> <C>
and $21,000 under construction $ 826 239 $ 824 714
Accumulated depreciation (148 181) (143 965)
678 058 680 749
Current Assets:
Cash 94 45
Accounts receivable 580 1 516
Materials and supplies - at average cost 2 076 2 193
Other 2 117 2 237
4 867 5 991
Deferred Charges:
Regulatory assets 4 450 4 449
Unamortized loss on reacquired debt 10 465 10 653
Other 12 371 12 394
27 286 27 496
Total Assets $ 710 211 $ 714 236
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock - $1.00 par value per share,
authorized 5,000 shares, outstanding
1,000 shares $ 1 $ 1
Other paid-in capital 209 999 209 999
Retained earnings 10 348 12 729
220 348 222 729
Long-term debt:
Debentures, net 148 478 148 454
Commercial paper 27 106 41 736
Medium-term notes 74 600 76 975
Notes payable to affiliates 10 400 -
480 932 489 894
Current liabilities:
Long-term debt due within 1 year 3 375 1 000
Accounts payable 17 48
Interest accrued 1 239 4 900
Taxes accrued 4 323 33
Other 728 503
9 682 6 484
Deferred Credits:
Unamortized investment credit 51 967 52 297
Deferred income taxes 139 367 137 297
Regulatory liabilities 28 263 28 264
219 597 217 858
Total Capitalization and Liabilities $ 710 211 $ 714 236
See accompanying notes to financial statements.
</TABLE>
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ALLEGHENY GENERATING COMPANY
Statement of Cash Flows
<TABLE>
<CAPTION>
Three Months Ended
March 31
1995 1994
(Thousands of Dollars)
CASH FLOWS FROM OPERATIONS:
<S> <C> <C>
Net income $ 6 569 $ 7 085
Depreciation 4 224 4 236
Deferred investment credit and income taxes, net 1 740 1 759
Changes in certain current assets and liabilities:
Accounts receivable, net 936 388
Materials and supplies 117 (32)
Accounts payable (31) 9
Taxes accrued 4 290 2 580
Interest accrued (3 661) (3 819)
Other, net 582 264
14 766 12 470
CASH FLOWS FROM INVESTING:
Construction expenditures (1 537) (471)
CASH FLOWS FROM FINANCING:
Retirement of long-term debt (4 230) (3 082)
Cash dividends on common stock (8 950) (8 875)
(13 180) (11 957)
NET CHANGE IN CASH 49 42
Cash at January 1 45 15
Cash at March 31 $ 94 $ 57
Supplemental cash flow information:
Cash paid during the quarter for:
Interest (net of amount capitalized) $ 8 411 $ 8 022
Income taxes - 453
See accompanying notes to financial statements.
</TABLE>
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ALLEGHENY GENERATING 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, 1994, should be read with the accompanying
financial statements and the following notes. With the exception of
the December 31, 1994 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 thereto contain all adjustments (which
consist only of normal recurring adjustments) necessary to present
fairly the Company's financial position as of March 31, 1995, and the
results of operations and cash flows for the three months ended March
31, 1995 and 1994.
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 repurchase agreements, are considered to be
the equivalent of cash.
3. Common stock dividends per share declared and paid during the periods
for which income statements are included are as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31
1995 1994
<S> <C> <C>
Number of Shares 1 000 1 000
Amount per Share $8 950 $8 875
</TABLE>
Earnings per share are not reported inasmuch as the common stock of
the Company is 100% owned by its parents, Monongahela Power Company
(27%), The Potomac Edison Company (28%), and West Penn Power Company
(45%).
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- 7 -
ALLEGHENY GENERATING COMPANY
Management's Discussion and Analysis of Financial Condition
and Results of Operations
COMPARISON OF FIRST QUARTER OF 1995 WITH FIRST QUARTER OF 1994
The changes in revenues and net income are primarily due to a
continuing reduction in the Company's net plant (the major component of
rate base).
The increase in other interest was due to interest paid on the revenue
refund pursuant to the settlement agreement described below.
LIQUIDITY AND CAPITAL RESOURCES
The Company's discussion on Liquidity and Capital Resources and
Results of Operations in the Allegheny Power System companies' combined
Annual Report on Form 10-K for the year ended December 31, 1994, should be
read with the following information.
On March 23, 1995, the Federal Energy Regulatory Commission (FERC)
approved the settlement agreement filed for the cases to determine the
return on equity (ROE) earned by the Company. The Company's ROE was
reduced to 11.13% for the period from March 1, 1992 through December 31,
1994, and increased to 11.20% beginning in 1995. In April 1995, revenue
refunds for the period March 1992 through December 1994, including
interest, were made to customers, for which adequate reserves had
previously been provided.
A settlement agreement is still pending before the FERC regarding the
prior tax payment of approximately $12 million to be included in rate base
which will produce about $1.4 million in additional annual revenues.
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ALLEGHENY GENERATING COMPANY
Part II--Other Information to Form 10-Q
for Quarter Ended March 31, 1995
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
1. (a) Date and Kind of Meeting:
The annual meeting of shareholders was held at New York,
New York, on March 2, 1995. No proxies were solicited.
(b) Election of Directors:
The holders of all 1,000 shares of common stock voted
to elect the following Directors at the annual meeting
to hold office until the next annual meeting of
shareholders and until their successors are duly chosen
and qualified.
Klaus Bergman
Stanley I. Garnett, II
Kenneth M. Jones
Alan J. Noia
Peter J. Skrgic
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 March 31, l995.
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.
ALLEGHENY GENERATING COMPANY
THOMAS J. KLOC
Thomas J. Kloc
Comptroller
(Chief Accounting Officer)
May 12, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> 0
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<EXCHANGE-RATE> 1
<CASH> 93
<SECURITIES> 0
<RECEIVABLES> 4,370
<ALLOWANCES> 0
<INVENTORY> 2,115
<CURRENT-ASSETS> 6,645
<PP&E> 826,667
<DEPRECIATION> 4,225
<TOTAL-ASSETS> 710,943
<CURRENT-LIABILITIES> 8,053
<BONDS> 247,781
<COMMON> 1
0
0
<OTHER-SE> 222,880
<TOTAL-LIABILITY-AND-EQUITY> 710,943
<SALES> 22,096
<TOTAL-REVENUES> 22,096
<CGS> 6,019
<TOTAL-COSTS> 7,319
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,984
<INCOME-PRETAX> 9,793
<INCOME-TAX> 3,224
<INCOME-CONTINUING> 6,569
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,569
<EPS-PRIMARY> 0<F1>
<EPS-DILUTED> 0<F1>
<FN>
<F1>All common stock is owned by Parent. No EPA required.
</FN>
</TABLE>
