OMB Approval
OMB 3235-0153
Expires Nov 30, 1984
Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1993 and Ending December 31, 1993
TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF
Allegheny Power Service Corporation
(Exact Name of Reporting Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Date of Incorporation November 22, 1963.
If not Incorporated, Date of Organization N/A
State or Sovereign Power under which Incorporated or Organized Maryland
Location of Principal Executive Offices of Reporting Company
12 East 49th Street
New York, NY 10017
Name, title, and address of officer to whom correspondence concerning this
report should be addressed :
Allegheny Power Service Corporation
800 Cabin Hill Drive
Robert D. Reeping, Assistant Comptroller Greensburg, PA 15601
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by Reporting
Company :
Allegheny Power System, Inc.
SEC 1926 (6-82)
1
<PAGE>
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing. Rule 94 provides that on or before the first day
of May in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable finding
pursuant to Rule 88, and every service company whose application for approval
or declaration pursuant to Rule 88 is pending shall file with the Commission
an annual report on Form U-13-60 and in accordance with the Instructions for
that form.
2. Number of Copies. Each annual report shall be filed in duplicate.
The company should prepare and retain at least one extra copy for itself in
case correspondence with reference to the report become necessary.
3. Period Covered by Report. The first report filed by any company
shall cover the period from the date the Uniform System of Accounts was
required to be made effective as to that company under Rules 82 and 93 to the
end of that calendar year. Subsequent reports should cover a calendar year.
4. Report Format. Reports shall be submitted on the forms prepared
by the Commission. If the space provided on any sheet of such form is inade-
quate, additional sheets may be inserted of the same size as a sheet of the
form or folded to such size.
5. Money Amounts Displayed. All money amounts required to be shown
in financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (Section 210.3-01(b)).
6. Deficits Displayed. Deficits and other like entries shall be
indicated by the use of either brackets or a parenthesis with corresponding
reference in footnotes. (Regulation S-X, Section 210.3-01(c))
7. Major Amendments or Corrections. Any company desiring to amend or
correct a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages, sched-
ules, and entries that are to be amended or corrected. A cover letter shall
be submitted requesting the Commission to incorporate the amended report
changes and shall be signed by a duly authorized officer of the company.
8. Definitions. Definitions contained in Instruction 01-8 to the
Uniform System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. Organization Chart. The service company shall submit with each
annual report a copy of its current organization chart.
10. Methods of Allocation. The service company shall submit with each
annual report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed. The
service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use of capital billed during the calendar year.
<PAGE>
2
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
SCHEDULE OR PAGE
DESCRIPTION OF SCHEDULES AND ACCOUNTS ACCT. NO. NO.
COMPARATIVE BALANCE SHEET Schedule I 4-5
Service Company Property Schedule II 6-7
Accumulated Provision for Depreciation and
Amortization of Service Company Property Schedule III 8
Investments Schedule IV 9
Accounts Receivable from Associate Companies Schedule V 10
Fuel Stock Expenses Undistributed Schedule VI 11
Stores Expense Undistributed Schedule VII 12
Miscellaneous Current and Accrued Assets Schedule VIII 13
Miscellaneous Deferred Debits Schedule IX 14
Research, Development, or Demonstration
Expenditures Schedule X 15
Proprietary Capital Schedule XI 16
Long-Term Debt Schedule XII 17
Current and Accrued Liabilities Schedule XIII 18
Notes to Financial Statements Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
Analysis of Billing - Associate Companies Account 457 21
Analysis of Billing - Nonassociate Companies Account 458 22
Analysis of Charges for Service - Associate
and Nonassociate Companies Schedule XVI 23
Schedule of Expense by Department or
Service Function Schedule XVII 24-25
Departmental Analysis of Salaries Account 920 26
Outside Services Employed Account 923 27
Employee Pensions and Benefits Account 926 28
General Advertising Expense Account 930.1 29
Miscellaneous General Expense Account 930.2 30
Rents Account 931 31
Taxes Other Than Income Taxes Account 408 32
Donations Account 426.1 33
Other Deductions Account 426.5 34
Notes to Statement of Income Schedule XVIII 35
<PAGE>
3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
PAGE
DESCRIPTION OF REPORTS OR STATEMENTS NO.
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR USE
OF CAPITAL BILLED 38
<PAGE>
4
ANNUAL REPORT OF Allegheny Power Service Corporation
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and
prior year.
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
CURRENT PRIOR
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) 1,809,953 2,745,929
107 Construction work in progress (Schedule II) 0 0
Total Property 1,809,953 2,745,929
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) 528,460 376,069
Net Service Company Property 1,281,493 2,369,860
INVESTMENTS
123 Investments in associate companies
(Schedule IV) 0 0
124 Other investments (Schedule IV) 7,000 854,981
Total Investments 7,000 854,981
CURRENT AND ACCRUED ASSETS
131 Cash 75,289 336,187
134 Special deposits 0 0
135 Working funds 62,615 56,302
136 Temporary cash investments (Schedule IV) 0 0
141 Notes receivable 0 0
143 Accounts receivable 421,678 478,036
144 Accumulated provision of uncollectible
accounts 0 0
146 Accounts receivable from associate
companies (Schedule V) 4,472,246 5,789,693
152 Fuel stock expenses undistributed (Schedule VI) 0 0
154 Materials and supplies 0 0
163 Stores expense undistributed (Schedule VII) 0 0
165 Prepayments 580 7,932,786
174 Miscellaneous current and accrued
assets (Schedule VIII) 21,882 76,728
Total Current and Accrued Assets 5,054,290 14,669,732
DEFERRED DEBITS
181 Unamortized debt expense 0 0
184 Clearing accounts 698 671
186 Miscellaneous deferred debits (Schedule IX) 1,768,800 2,211,000
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income taxes 1,645,969 819,058
Total Deferred Debits 3,415,467 3,030,729
TOTAL ASSETS AND OTHER DEBITS 9,758,250 20,925,302
<PAGE>
5
ANNUAL REPORT OF Allegheny Power Service Corporation
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
CURRENT PRIOR
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 50,000 50,000
211 Miscellaneous paid-in capital (Schedule XI) 0 0
215 Appropriated retained earnings (Schedule XI) 0 0
216 Unappropriated retained earnings
(Schedule XI) 0 0
Total Proprietary Capital 50,000 50,000
LONG-TERM DEBT
223 Advances from associate
companies (Schedule XII) 0 2,500,000
224 Other long-term debt (Schedule XII) 0 0
225 Unamortized premium on long-term debt 0 0
226 Unamortized discount on long-term
debt-debit 0 0
Total Long-Term Debt 0 2,500,000
CURRENT AND ACCRUED LIABILITIES
231 Notes payable 0 0
232 Accounts payable 2,981,491 2,128,420
233 Notes payable to associate
companies (Schedule XIII) 0 0
234 Accounts payable to associate
companies (Schedule XIII) 1,884,541 11,436,545
236 Taxes accrued 36,112 29,328
237 Interest accrued 0 19,953
238 Dividends declared 0 0
241 Tax collections payable 192,114 153,603
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 4,613,992 4,607,453
Total Current and Accrued Liabilities 9,708,250 18,375,302
DEFERRED CREDITS
253 Other deferred credits 0 0
255 Accumulated deferred investment tax credits 0 0
Total Deferred Credits 0 0
282 ACCUMULATED DEFERRED INCOME TAXES 0 0
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 9,758,250 20,925,302
<PAGE>
6
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE II - SERVICE COMPANY PROPERTY
BALANCE AT RETIRE- BALANCE
BEGINNING MENTS OTHER 1/ AT CLOSE
DESCRIPTION OF YEAR ADDITIONS OR SALES CHANGES OF YEAR
SERVICE COMPANY PROPERTY
ACCOUNT
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND AND LAND
RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS 836,367 836,367
307 EQUIPMENT 2/ 1,255,782 6,759 (968,911) 293,630
308 OFFICE FURNITURE
AND EQUIPMENT 653,780 26,176 679,956
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY 3/
SUBTOTAL 2,745,929 32,935 (968,911) 1,809,953
107 CONSTRUCTION WORK
IN PROGRESS
TOTAL 2,745,929 32,935 (968,911) 1,809,953
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Amortization of capitalized leases.
<PAGE>
7
SCHEDULE II - CONTINUED
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE
SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT
ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
BALANCE
AT CLOSE
SUBACCOUNT DESCRIPTION ADDITIONS OF YEAR
Capitalized lease for data processing equipment 0 170,588
Communications equipment 6,759 123,042
TOTAL 6,759 293,630
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
None.
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
None.
<PAGE>
8
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
ADDITIONS OTHER
BALANCE AT CHARGED CHANGES BALANCE
BEGINNING TO RETIRE- ADD AT CLOSE
DESCRIPTION OF YEAR ACCT 403 MENTS (DEDUCT) 1/ OF YEAR
ACCOUNT
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE
PLANT
304 LAND AND LAND
RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS 244,693 79,756 324,449
307 EQUIPMENT 16,793 11,264 28,057
308 OFFICE
FURNITURE
AND FIXTURES 114,583 61,371 175,954
309 AUTOMOBILES,
OTHER VEHICLES
AND RELATED
GARAGE EQUIP.
310 AIRCRAFT AND
AIRPORT
EQUIPMENT
311 OTHER SERVICE
COMPANY
PROPERTY
TOTAL 376,069 152,391 528,460
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
None.
<PAGE>
9
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124 "Other Investments", state each
investment separately, with description, including, the
name of issuing company, number of shares or principal
amount, etc.
Under Account 136, "Temporary Cash Investments", list each
investment separately.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES
None.
ACCOUNT 124 - OTHER INVESTMENTS
Membership Certificates 7,000 7,000
Executive Life Insurance 847,981 0
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
None.
TOTAL 854,981 7,000
<PAGE>
10
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
from each associate company. Where the service company has
provided accommodation or convenience payments for associate
companies, a separate listing of total payments for each
associate company by subaccount should be provided.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNGING CLOSE
OF YEAR OF YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
Allegheny Power System, Inc. 190,340 896,834
Monongahela Power Company 1,206,607 2,603
The Potomac Edison Company 1,519,529 0
West Penn Power Company 2,885,673 3,577,887
Allegheny Generating Company (13,254) (6,589)
Allegheny Pittsburgh Coal Company 798 1,511
TOTAL 5,789,693 4,472,246
ANALYSIS OF CONVENIENCE OR ACCOMODATION PAYMENTS:
Monongahela The Potomac West Penn
DESCRIPTION Power Edison Power TOTAL
Company Company Company PAYMENTS
DP equipment and software 5,832 0 67,412 73,244
Engineering services 29,591 23,663 6,891 60,145
DP services 0 0 15,589 15,589
Other outside services 13,994 2,231 92 16,317
Employee expenses,
training, and manuals 10,137 8,787 12,089 31,013
Company vehicle expenses 0 0 2,918 2,918
Heat pump rebate 0 0 750 750
TOTAL PAYMENTS 59,554 34,681 105,741 199,976
<PAGE>
11
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with
respect to fuel stock expenses during the year and
indicate amount attributable to each associate company.
Under the section headed "Summary" listed below give an
overall report of the fuel functions performed by the
service company.
DESCRIPTION LABOR EXPENSES TOTAL
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED
None.
TOTAL
SUMMARY:
<PAGE>
12
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with
respect to stores expense during the year and indicate
amount attributable to each associate company.
DESCRIPTION LABOR EXPENSES TOTAL
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED
None.
TOTAL
<PAGE>
13
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less
than $10,000 may be grouped, showing the number of
items in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS
Federal and state income tax refund
receivable 73,817 21,882
Personal computer equipment inventory 2,911 0
TOTAL 76,728 21,882
<PAGE>
14
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less
than $10,000 may be grouped by class showing the
number of items in each class.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Pension regulatory asset 2,211,000 1,768,800
TOTAL 2,211,000 1,768,800
<PAGE>
15
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research,
development, or demonstration project which incurred
costs by the service corporation during the year.
DESCRIPTION AMOUNT
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR
DEMONSTRATION EXPENDITURES
Miscellaneous (72 projects under $5,000 each) 22,764
TOTAL 22,764
<PAGE>
16
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XI - PROPRIETARY CAPITAL
NUMBER OF PAR OR STATED
OF SHARES VALUE OUTSTANDING CLOSE OF PERIOD
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
<C> <C> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 50,000 $10 5,000 $50,000
</TABLE>
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise to the reported
amounts.
DESCRIPTION AMOUNT
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL None.
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS None.
TOTAL
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed or net loss
remaining from servicing nonassociates per the General Instructions of the
Uniform System of Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date declared and date
paid.
BALANCE AT NET INCOME BALANCE AT
DESCRIPTION BEGINNING OR DIVIDENDS CLOSE
OF YEAR (LOSS) PAID OF YEAR
ACCOUNT 216 - UNAPPROPRIATED
RETAINED EARNINGS
None.
TOTAL
<PAGE>
17
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes, and advances on open account. Names of associate
companies from which advances were received shall be shown under the class
and series of obligation column. For Account 224 - Other long-term debt provide
the name of creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
<TABLE>
<CAPTION>
TERMS OF OBLIG DATE BALANCE AT BALANCE
NAME OF CREDITOR CLASS & SERIES OF INTEREST AMOUNT BEGINNING 1 /AT CLOSE
OF OBLIGATION MATURITYRATE AUTHORIZED OF YEAR ADDITIONSDEDUCTIONS OF YEAR
ACCOUNT 223-ADVANCES FROM
ASSOCIATE
COMPANIES:
<S> <C> <C> <C> <C>
Allegheny Power System, Inc.promissory note12-31-94 2/ 7,500,000 2,500,000 2,500,000 0
ACCOUNT 224-OTHER LONG-TERM
DEBT:
None.
TOTAL 7,500,000 2,500,000 2,500,000 0
</TABLE>
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
Promissory note paid in full on December 23, 1993.
2/ A rate equal to the average interest rate on short-term borrowings by
Allegheny Power System, Inc. (APS) during each calendar quarter, or, for any
quarter during which APS had no short-term borrowings outstanding, at the
United States commercial bank prime rate in effect from time to time. The
interest rate fluctuated between 6% and 3.1% in 1993.
<PAGE>
18
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to
each associate company. Give description and
amounts of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped,
showing the number of items in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE
COMPANIES
None.
TOTAL
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
Allegheny Power System, Inc. 0 386,585
The Potomac Edison Company 2,256,259 502,147
West Penn Power Company 7,087,308 890
Monongahela Power Company 2,092,978 994,919
TOTAL 11,436,545 1,884,541
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
OPEB accrual 0 556,645
Directors' deferred compensation 592,195 0
Employee benefits - pension plan 2,875,759 3,886,759
Capital leases 1,139,499 170,588
TOTAL 4,607,453 4,613,992
<PAGE>
19
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
None.
<PAGE>
20
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
INCOME
457 Services rendered to associate companies 87,898,989 80,553,562
458 Services rendered to nonassociate
companies 0 0
421 Miscellaneous income or loss 3,896 5,190
Total Income 87,902,885 80,558,752
EXPENSE
920 Salaries and wages 44,073,708 41,873,765
921 Office supplies and expenses 4,745,728 4,366,035
922 Administrative expense transferred -
credit (630,022) (677,890)
923 Outside services employed 6,774,436 5,897,043
924 Property insurance 11,609 13,846
925 Injuries and damages 146,362 126,991
926 Employee pensions and benefits 8,215,042 4,941,026
928 Regulatory commission expense 630,022 677,890
930.1 General advertising expenses 0 0
930.2 Miscellaneous general expenses 38,386 47,518
931 Rents 19,727,864 18,759,646
932 Maintenance of structures and
equipment 993,643 886,371
403 Depreciation and amortization expense 152,391 155,232
408 Taxes other than income taxes 3,285,333 3,089,208
409 Income taxes 468,412 98,921
410 Provision for deferred income taxes 128,955 157,203
411 Provision for deferred income taxes -
credit (955,866) 0
411.5 Investment tax credit 0 0
426.1 Donations 390 135
426.5 Other deductions 0 0
427 Interest on long-term debt 0 0
430 Interest on debt to associate
companies 98,252 107,400
431 Other interest expense (1,760) 38,412
Total Expense 87,902,885 80,558,752
Net Income or (Loss) 0 0
<PAGE>
21
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
DIRECT INDIRECT COMPENSATION TOTAL
NAME OF ASSOCIATE COMPANY COSTS COSTS FOR USE AMOUNT
CHARGED CHARGED OF CAPITAL BILLED
457-1 457-2 457-3
Monongahela Power Company 27,645,907 659,617 30,537 28,336,061
The Potomac Edison Company 19,374,502 495,350 22,932 19,892,784
West Penn Power Company 37,937,934 949,740 43,968 38,931,642
Allegheny Power System, Inc. 633,353 16,130 746 650,229
Allegheny Generating Company 84,952 1,486 69 86,507
Allegheny Pittsburgh Coal Co. 1,766 0 0 1,766
TOTAL 85,678,414 2,122,323 98,252 87,898,989
<PAGE>
22
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
<TABLE>
<CAPTION>
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NAME OF NONASSOCIATE COMPANY COST COST FOR USE TOTAL OR AMOUNT
CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
<C> <C> <C> <C>
458-1 458-2 458-3 458-4
None.
</TABLE>
TOTAL
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociate company:
<PAGE>
ANNUAL REPORT OF Allegheny Power Service Corporation 23
For the Year Ended December 31, 1993
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
ASSOCIATE COMPANY CHARGES
DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL
920 SALARIES AND WAGES 43,325,544 748,164 44,073,708
921 OFFICE SUPPLIES AND EXPENSES 4,619,911 125,817 4,745,728
922 ADMIN. EXP. TRANSFERRED - CREDIT (630,022) 0 (630,022)
923 OUTSIDE SERVICES EMPLOYED 5,163,845 1,610,591 6,774,436
924 PROPERTY INSURANCE 11,609 0 11,609
925 INJURIES AND DAMAGES 146,244 118 146,362
926 EMPLOYEE PENSIONS AND BENEFITS 8,941,268 (726,226) 8,215,042
928 REGULATORY COMMISSION EXPENSE 630,022 0 630,022
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 33,915 4,471 38,386
931 RENTS 19,266,366 461,498 19,727,864
932 MAINTENANCE OF STRUCTURES AND EQUIP. 977,619 16,024 993,643
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 152,391 152,391
408 TAXES OTHER THAN INCOME TAXES 3,191,703 93,630 3,285,333
409 INCOME TAXES 0 468,412 468,412
410 PROVISION FOR DEFERRED INCOME TAXES 0 128,955 128,955
411 PROV. FOR DEFERRED INCOME TAXES - CR. 0 (955,866) (955,866)
411.5 INVESTMENT TAX CREDIT 0 0 0
421 MISCELLANEOUS INCOME 0 (3,896) (3,896)
426.1 DONATIONS 390 0 390
426.5 OTHER DEDUCTIONS 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 0 (1,760) (1,760)
INSTRUCTION: Total cost of service will
equal for associate and nonassociate
companies the total amount billed under their
separate analysis of billing schedules.
TOTAL EXPENSES 85,678,414 2,122,323 87,800,737
COMPENSATION FOR USE OF EQUITY CAPITAL
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 98,252 98,252
TOTAL COST OF SERVICE 85,678,414 2,220,575 87,898,989
<PAGE>
ANNUAL REPORT OF Allegheny Power Service Corporation 23A
For the Year Ended December 31, 1993
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
<TABLE>
<CAPTION>
NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE
DIRECT INDIRECT DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL
<C> <S> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 43,325,544 748,164 44,073,708
921 OFFICE SUPPLIES AND EXPENSES 4,619,911 125,817 4,745,728
922 ADMIN. EXP. TRANSFERRED - CREDIT (630,022) 0 (630,022)
923 OUTSIDE SERVICES EMPLOYED 5,163,845 1,610,591 6,774,436
924 PROPERTY INSURANCE 11,609 0 11,609
925 INJURIES AND DAMAGES 146,244 118 146,362
926 EMPLOYEE PENSIONS AND BENEFITS 8,941,268 (726,226) 8,215,042
928 REGULATORY COMMISSION EXPENSE 630,022 0 630,022
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 33,915 4,471 38,386
931 RENTS 19,266,366 461,498 19,727,864
932 MAINTENANCE OF STRUCTURES AND EQUIP. 977,619 16,024 993,643
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 152,391 152,391
408 TAXES OTHER THAN INCOME TAXES 3,191,703 93,630 3,285,333
409 INCOME TAXES 0 468,412 468,412
410 PROVISION FOR DEFERRED INCOME TAXES 0 128,955 128,955
411 PROV. FOR DEFERRED INCOME TAXES - CR. 0 (955,866) (955,866)
411.5 INVESTMENT TAX CREDIT 0 0 0
421 MISCELLANEOUS INCOME 0 (3,896) (3,896)
426.1 DONATIONS 390 0 390
426.5 OTHER DEDUCTIONS 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 0 (1,760) (1,760)
INSTRUCTION: Total cost of service will
equal for associate and nonassociate
companies the total amount billed under their
separate analysis of billing schedules.
TOTAL EXPENSES 0 0 0 85,678,414 2,122,323 87,800,737
COMPENSATION FOR USE OF EQUITY CAPITAL
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 98,252 98,252
TOTAL COST OF SERVICE 0 0 0 85,678,414 2,220,575 87,898,989
</TABLE>
24
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR
SERVICE FUNCTION
FIELD:
BPS
TOTAL ADMIN-
DESCRIPTION OF ITEMS AMOUNT OVERHEAD ISTRATIV PLANNING
<C> <S> <C> <C> <C>
920 SALARIES AND WAGES 44,073,708 73,827 628,076 3,485,700
921 OFFICE SUPPLIES AND EXPENSES 4,745,728 41,209 5,251 280,562
922 ADMINISTRATIVE EXPENSES
TRANSFERRED - CREDIT (630,022) 0 (352) (1,450)
923 OUTSIDE SERVICES EMPLOYED 6,774,436 1,563,514 3,601 156,401
924 PROPERTY INSURANCE 11,609 0 0 0
925 INJURIES AND DAMAGES 146,362 118 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 8,215,042 201,137 95,410 620,642
928 REGULATORY COMMISSION EXPENSE 630,022 0 352 1,450
930.1 GENERAL ADVERTISING EXPENSE 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSE 38,386 1,800 0 2,000
931 RENTS 19,727,864 206,997 11,586 572,065
932 MAINTENANCE OF STRUCTURES AND EQUIP. 993,643 0 0 2,668
403 DEPRECIATION AND AMORTIZATION EXP. 152,391 152,391 0 0
408 TAXES OTHER THAN INCOME TAXES 3,285,333 47,771 41,738 262,928
409 INCOME TAXES 468,412 468,412 0 0
410 PROVISION FOR DEFERRED INCOME TAXES 128,955 128,955 0 0
411 PROV. FOR DEFERRED INCOME TAXES - CR. (955,866) (955,866) 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0
426.1 DONATIONS 390 0 0 0
426.5 OTHER DEDUCTIONS 0 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 98,252 98,252 0 0
431 OTHER INTEREST EXPENSE (1,760) (1,760) 0 0
INSTRUCTION: Indicate each department
or service function. (See Instruction
01-3 General Structure of Accounting
System: Uniform System of Accounts.)
Total Expenses 87,902,885 2,026,757 785,662 5,382,966
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation 24A
For the Year Ended December 31, 1993
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
RATES
AND
DESCRIPTION OF ITEMS ENGINEERING CONSTRUCTION OPERATING ACCOUNTING
<C> <S> <C> <C> <C> <C>
920 SALARIES AND WAGES 10,516,380 2,037,924 8,785,650 3,099,985
921 OFFICE SUPPLIES AND EXPENSES 981,674 289,271 1,042,328 174,142
922 ADMINISTRATIVE EXPENSES
TRANSFERRED - CREDIT (2,381) 0 (23,036) (572,674)
923 OUTSIDE SERVICES EMPLOYED 403,892 574,605 442,840 293,115
924 PROPERTY INSURANCE 0 0 0 0
925 INJURIES AND DAMAGES 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 1,838,880 358,012 1,608,740 529,579
928 REGULATORY COMMISSION EXPENSE 2,381 0 23,036 572,674
930.1 GENERAL ADVERTISING EXPENSE 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSE 16,295 1,000 1,060 250
931 RENTS 2,140,250 1,075,799 5,379,015 402,561
932 MAINTENANCE OF STRUCTURES AND EQUIP. 33,015 7,722 6,136 2,017
403 DEPRECIATION AND AMORTIZATION EXP. 0 0 0 0
408 TAXES OTHER THAN INCOME TAXES 795,504 155,610 661,510 231,728
409 INCOME TAXES 0 0 0 0
410 PROVISION FOR DEFERRED INCOME TAXES 0 0 0 0
411 PROV. FOR DEFERRED INCOME TAXES - CR. 0 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0
426.1 DONATIONS 0 0 0 0
426.5 OTHER DEDUCTIONS 0 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0 0
431 OTHER INTEREST EXPENSE 0 0 0 0
INSTRUCTION: Indicate each department
or service function. (See Instruction
01-3 General Structure of Accounting
System: Uniform System of Accounts.)
Total Expenses 16,725,890 4,499,943 17,927,279 4,733,377
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation 25
For the Year Ended December 31, 1993
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
CS ADMIN., HEADQUARTERS:
PERSONNEL, INFOR. SERV., EXECUTIVE
PURCHASING, LEGAL, RISK AND LEGAL RATES EMPLOYEE &
ACCOUNT PROCEDURES, MNGMT., & ADMINI- AND BULK AND CUSTOMER &
NUMBER & SECURITY FIN. PLNG. STRATION SECRETARY POWER ACCOUNTING FINANCIAL PUB. RELATIONS
<C> <C> <C> <C> <C> <C> <C> <C> <C>
920 4,807,028 8,273,120 580,007 433,013 248,967 212,220 577,097 314,714
921 442,491 998,921 87,280 120,144 47,091 28,040 120,965 86,359
922 0 (30,129) 0 0 0 0 0 0
923 260,824 2,984,473 11,843 31,311 46 0 20,604 27,367
924 0 11,609 0 0 0 0 0 0
925 0 146,244 0 0 0 0 0 0
926 1,091,051 1,449,685 89,892 73,125 54,504 47,968 105,089 51,328
928 0 30,129 0 0 0 0 0 0
930.1 0 0 0 0 0 0 0 0
930.2 4,638 1,343 10,000 0 0 0 0 0
931 753,948 8,448,098 65,046 291,003 65,046 65,046 151,775 99,629
932 9,969 920,611 0 11,505 0 0 0 0
403 0 0 0 0 0 0 0 0
408 362,034 624,014 23,342 18,435 10,199 8,667 25,045 16,808
409 0 0 0 0 0 0 0 0
410 0 0 0 0 0 0 0 0
411 0 0 0 0 0 0 0 0
411.5 0 0 0 0 0 0 0 0
426.1 200 0 100 80 0 0 10 0
426.5 0 0 0 0 0 0 0 0
427 0 0 0 0 0 0 0 0
430 0 0 0 0 0 0 0 0
431 0 0 0 0 0 0 0 0
7,732,183 23,858,118 867,510 978,616 425,853 361,941 1,000,585 596,205
</TABLE>
<PAGE>
26
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE NUMBER
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL
Indicate each dept. TOTAL PARENT OTHER NON END OF
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
Field Operations:
Bulk Power Supply:
Administrative 629,025 629,025 4
Planning 3,494,750 3,494,750 69
Engineering 10,530,789 308 10,530,481 208
Construction 2,042,653 373 2,042,280 46
Operating 8,791,364 4,562 8,786,802 166
Rates and Accounting 3,105,205 84,252 3,020,953 57
CS Administrative, Per-
sonnel, Purchasing,
Procedures, and Security 4,826,023 4,826,023 119
Information Services,
Legal, Risk Management,
and Financial Planning 8,280,040 41,103 8,238,937 174
Headquarters:
Executive and Adminis-
trative 580,397 30,584 549,813 2
Legal and Secretarial 432,727 171,875 260,852 9
Bulk Power Supply 250,284 2,542 247,742 2
Rates and Accounting 213,414 1,894 211,520 2
Financial 579,378 105,630 473,748 6
Employee & Customer Rela-
tions and Public Infor-
mation 317,659 1,534 316,125 4
TOTAL 44,073,708 444,657 43,629,051 868
<PAGE>
27
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
Data Processing Service:
A. C. Coy P.O. Box 1262 NA 103,417
Cannonsburg, PA 15317
Candle Corp. P.O. Box 92278 NA 51,663
Chicago, IL 60675-2278
Cincom Systems, Inc. Department 405 NA 104,586
Cincinnati, OH 45296
Computer Associates P.O. Box 360355 NA 146,366
International, Inc. Pittsburgh, PA
15251-6355
Computerland Sales P.O. Box 1350 NA 39,423
Gibsonia, PA 15044
Compuware Corporation Drawer #64376 NA 79,261
Detroit, MI 48264-0376
Contingency Planning 131 Jericho Turnpike NA 39,500
Research, Inc. Suite 104
Jericho, NY 11753
Dylakor, Inc. P.O. Box 73226 NA 43,955
Chicago, IL 60673
<PAGE>
27A
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
Data Processing Service (continued)
Gartner Group, Inc. P.O. Box 10799 NA 25,011
Newark, NJ 07193-0799
International Business P.O. Box 91945 NA 1,002,160
Machines Chicago, IL 60693
Integraph Corporation P.O. Box 13700 NA 89,051
Newark, NJ 07188-0700
KCS Computer Service, 777 Penn Center Blvd. NA 306,155
Inc. Suite 600
Pittsburgh, PA
15235-5906
Legent Corporation Department #1709 NA 71,278
Columbus, OH 43271-1709
Lucas Management P.O. Box 101514 NA 40,702
Systems Atlanta, GA 30392
S.A.S. Institute, Inc. P.O. Box 65505 NA 45,463
Charlotte, NC 28265
Sterling Software, Inc.P.O. Box 73199 NA 25,479
Chicago, IL 60673
<PAGE>
27B
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
Data Processing Service (continued)
Storage Technology P.O. Box 14090 NA 27,666
Corporation Newark, NJ 07198
Syncsort, Inc. 134 Flanders Road NA 25,546
Westboro, MA 01581
Telco Research Corp. Drawer #T-5548 NA 56,395
Nashville, TN 37244
Texas Instruments, Inc.P.O. Box 198645 NA 292,273
Atlanta, GA 30384-8645
Miscellaneous - 107 vendors NA 510,890
3,126,240
Engineering Service:
Putnam, Hayes, & One Memorial Drive NA 131,507
Bartlett, Inc. Cambridge, MA 02142
Miscellaneous - 5 vendors NA 12,046
143,553
<PAGE>
27C
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
Legal Service:
Carter, Ledyard, & 2 Wall Street NA 47,327
Milburn New York, NY 10005
Milbank, Tweed, Hadley,1 Chase Manhattan Plaza NA 77,282
& McCloy New York, NY 10005
Miscellaneous - 10 vendors NA 15,872
140,481
Medical Service:
Miscellaneous - 4 vendors NA 2,054
Rates Service:
TLG Engineering, Inc. Route 67 NA 26,565
Box 237
Bridgewater, CT 06752
Miscellaneous - 2 vendors NA 9,126
35,691
<PAGE>
27D
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
RELATIONSHIP
"A"-ASSOCIATE
"NA"-NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
Other Service:
REB Management Co. 4861 Granada Drive NA 28,066
Yorba Linda, CA 92686
ROMAC 1700 Market Street NA 35,051
Suite 2702
Philadelphia, PA 19103
SE Technologies, Inc. 98 Vanadium Road NA 416,770
Bridgeville, PA 15017
Miscellaneous - 89 vendors NA 218,487
698,374
West Penn Power Company Charges:
Principally payroll, accounting,
billing control, personnel, and
general office services at cost
for the field operation depart-
ments. A 2,628,043
Total 6,774,436
<PAGE>
28
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit
program provided by the service company. Such
listing should be limited to $25,000.
DESCRIPTION AMOUNT
Group medical 2,576,408
Postretirement benefits other than pensions 1,903,237
Corporate pension plan 1,456,560
Savings plan expense 1,023,801
Group life insurance 344,500
Employee education assistance 234,188
Group dental 189,178
Supplemental payments to retired employees 173,685
Employee moving expense 163,302
Long-term disability expense 88,915
Medical fees for employees 45,216
Miscellaneous (6) 16,052
TOTAL 8,215,042
<PAGE>
29
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account
930.1, "General Advertising Expenses", classifying
the items according to the nature of the advertising
and as defined in the account definition. If a
particular class includes an amount in excess of
$3,000 applicable to a single payee show separately
the name of the payee and the aggregate amount
applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
None.
TOTAL
<PAGE>
30
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account
930.2, "Miscellaneous General Expenses", classifying
such expenses according to their nature. Payments and
expenses permitted by Sections 321(b)(2) of the Federal
Election Campaign Act, as amended by Public Law 94-283
in 1976 (2 U.S.C. Section 441(b)(2)) shall be separately
classified.
DESCRIPTION AMOUNT
Corporate membership dues 35,016
Miscellaneous 3,370
TOTAL 38,386
<PAGE>
31
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account
931, "Rents", classifying such expenses by major
groupings of property, as defined in the account
definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
Data processing equipment and space 8,940,221
Power control center equipment and space 3,155,337
Microwave and telecommunications equipment 1,816,191
Other office space 5,086,966
Other office furniture and equipment 562,755
Miscellaneous 166,394
TOTAL 19,727,864
<PAGE>
32
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than
Income Taxes". Separate the analysis into two groups:
(1) other than U.S. Government taxes, and (2) U.S.
Government taxes. Specify each of the various kinds
of taxes and show the amount thereof. Provide a
subtotal for each class of tax.
KIND OF TAX AMOUNT
(1) Other than U.S. Government Taxes:
State unemployment tax 176,856
New York City commercial rent or occupancy tax 42,925
New York City general occupation tax 2,996
Franchise tax 2,854
(2) U.S. Government Taxes:
FICA 3,007,706
Federal unemployment 51,996
TOTAL 3,285,333
<PAGE>
33
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
DONATIONS
ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account
426.1, "Donations", classifying such expenses by its
purpose. The aggregate number and amount of all
items of less than $3,000 may be shown in lieu of
details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
Miscellaneous (6) 390
TOTAL 390
<PAGE>
34
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account
426.5, "Other Deductions", classifying such expenses
according to their nature.
DESCRIPTION NAME OF PAYEE AMOUNT
None.
TOTAL
<PAGE>
35
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1993
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes
regarding the statement of income or any account
thereof. Furnish particulars as to any significant
increase in services rendered or expenses incurred
during the year. Notes relating to financial
statements shown elsewhere in this report may be
indicated here by reference.
None.
<PAGE>
36
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF EXECUTIVE OFFICER
SENIOR VICE PRESIDENT (BULK POWER)
EXECUTIVE DIRECTOR, PLANNING
MANAGER, LOAD MODIFICATION PLANNING
MANAGER, SYSTEM LOAD FORECASTS
DIRECTOR, GENERATION PLANNING
MANAGER, GENERATION PLANNING
DIRECTOR, TRANSMISSION PLANNING
MANAGER, AREA TRANSMISSION PLANNING
MANAGER, EHV TRANSMISSION PLANNING
MANAGER, ENVIRONMENTAL CONTROL
EXECUTIVE DIRECTOR, ENGINEERING
DIRECTOR, ENGINEERING SERVICES
MANAGER, DRAFTING SERVICES
MANAGER, LINES STANDARDS
MANAGER, SUBSTATION AND METHODS STANDARDS
MANAGER, SURVEYS AND RIGHTS-OF-WAY SERVICES
DIRECTOR, POWER ENGINEERING
MANAGER, POWER ENGINEERING PROJECTS
MANAGER, ENGINGEERING STUDIES
MANAGER, RESEARCH AND DEVELOPMENT
<PAGE>
36A
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF EXECUTIVE OFFICER (CONTINUED)
SENIOR VICE PRESIDENT (BULK POWER) (CONTINUED)
EXECUTIVE DIRECTOR, ENGINEERING (CONTINUED)
DIRECTOR, TRANSMISSION ENGINEERING
MANAGER, CONTROLS ENGINEERING
MANAGER, LINES ENGINEERING
MANAGER, SUBSTATION ENGINEERING
EXECUTIVE DIRECTOR, CONSTRUCTION
DIRECTOR, POWER CONSTRUCTION
MANAGER, POWER AND FACILITIES CONSTRUCTION
MANAGER, TRANSMISSION CONTRUCTION
MANAGER, CONSTRUCTION SERVICES
MANAGER, START-UP
EXECUTIVE DIRECTOR, OPERATING
DIRECTOR, FUELS
MANAGER, FUELS
DIRECTOR, POWER STATIONS
MANAGER, BUDGETS AND COST CONTROL
MANAGER, POWER STATION MAINTENANCE
MANAGER, TESTS AND RESULTS
<PAGE>
36B
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF EXECUTIVE OFFICER (CONTINUED)
SENIOR VICE PRESIDENT (BULK POWER) (CONTINUED)
EXECUTIVE DIRECTOR, OPERATING (CONTINUED)
DIRECTOR, SYSTEM OPERATIONS
MANAGER, POWER CONTROL
MANAGER, SYSTEM OPERATIONS ENGINEERING
MANAGER, POWER STATION OCCUPATIONAL HEALTH, SAFETY AND TRAINING
VICE PRESIDENT AND COMPTROLLER
DIRECTOR, ACCOUNTING SERVICES AND ASSISTANT COMPTROLLER
MANAGER, ACCOUNTING SERVICES
DIRECTOR, RATES
ASSISTANT DIRECTOR, RATES
MANAGER, RATE ANALYSIS
MANAGER, RATE RESEARCH
MANAGER, RATE STUDIES
DIRECTOR, SYSTEM INTERNAL AUDITS
MANAGER, EDP INTERNAL AUDITS
MANAGER, INTERNAL AUDITS (GREENSBURG)
MANAGER, INTERNAL AUDITS (FAIRMONT)
MANAGER, INTERNAL AUDITS (HAGERSTOWN)
MANAGER, SYSTEM TAXES
<PAGE>
36C
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF EXECUTIVE OFFICER (CONTINUED)
EXECUTIVE DIRECTOR, CENTRAL SERVICES
DIRECTOR, INFORMATION SERVICES
MANAGER, EDP OPERATIONS
MANAGER, EDP USER SUPPORT AND R&D
MANAGER, REVENUE AND ACCOUNTING SYSTEMS
MANAGER, TECHNICAL INFORMATION SERVICES AND NETWORK SUPPORT
MANAGER, TECHNICAL, MATERIALS AND PERSONNEL SYSTEMS
MANAGER, PROCEDURES AND EDP METHODS
MANAGER, PURCHASING
VICE PRESIDENT (LEGAL AND REGULATORY)
GROUP GENERAL COUNSEL
SECRETARY
VICE PRESIDENT (EMPLOYEE RELATIONS)
DIRECTOR, PERSONNEL POLICY DEVELOPMENT AND ADMINISTRATION
MANAGER, COMPENSATION AND BENEFITS
MANAGER, EMPLOYEE RELATIONS
DIRECTOR, SYSTEM SECURITY
<PAGE>
36D
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF EXECUTIVE OFFICER (CONTINUED)
SENIOR VICE PRESIDENT, FINANCE
ASSISTANT TREASURER
INVESTOR RELATIONS ADMINISTRATOR
MANAGER, CORPORATE RISK MANAGEMENT
MANAGER, FINANCIAL PLANNING
VICE PRESIDENT AND TREASURER
MANAGER, CORPORATE DEVELOPMENT
DIRECTOR, PUBLIC INFORMATION
<PAGE>
37
ANNUAL REPORT OF Allegheny Power Service Corporation
METHODS OF ALLOCATION
1. The costs of rendering services by Service Company include all costs of
doing business including interest on debt but excluding a return for
the use of Service Company's initial equity capital amounting to $50,000.
2. (a) Service Company maintains a separate record of the expenses of each
department. These expenses include expenses that are directly
attributable to the department, and an appropriate portion of those
expenses that are not directly attributable to the department but
which are necessary to its operation.
(b) The aggregate of these expenses will be referred to hereinafter as
"Departmental Expenses," and such expenses consist of salaries of
officers and other employees, employee welfare expenses (i.e., social
security taxes, life, pension, post-retirement benefits (other than
pension), medical, dental, and other welfare expenses), expenses of
training and development of Service Company's employees, rents, dues
and memberships, and all other expenses attributable to, or necessary
to the operation of, the department.
(c) Departmental Expenses do not include:
(i) Those incremental Out-of-Pocket Expenses that are incurred for
the direct benefit and convenience of a particular Customer
Company or a group of Customer Companies and are to be charged
solely to such Customer Company or group of Customer Companies;
(ii) Service Company's Overhead Expenses. Such expenses include, among
others, costs of maintaining the corporate existence of Service
Company; supplemental payments to retired employees; taxes; two-
thirds of the New York Secretary and Office Services Department
(the estimated portion of this department's expenses for general
office services, telephone switchboard, mail and messenger service
and central records), and other expenses, such as outside auditing
and legal fees, and;
(iii) Compensation for Use of Capital, which represents interest on
notes payable to the parent company, Allegheny Power System, Inc.
(APS).
3. (a) Employees in each department are divided into two groups:
(i) Employees directly engaged in rendering services to Customer
Companies or to Service Company are designated as Group A
employees.
(ii) Secretaries, clerical, office service and other employees, who are
not engaged directly in rendering services to Customer Companies
or to Service Company, are designated as Group B employees.
(b) Group A employees maintain records showing time employed in rendering
services ("Chargeable Hours"), nature of services rendered, and
identity of companies or groups of companies served.
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37A
ANNUAL REPORT OF Allegheny Power Service Corporation
METHODS OF ALLOCATION
(c) An hourly departmental expense billing rate for each Group A employee
is calculated monthly as follows:
(i) The total Chargeable Hours of all Group A employees of each
department are summarized from the Group A time records for the
month.
(ii) The hourly departmental expense billing rate for each Group A
employee of the department is the quotient obtained by dividing
the Chargeable Hours for the department (as determined in Section
3.(c)(i)) into the total Departmental Expenses for the department
(as defined in Section 2.(b)).
4. The Chargeable Hours and incremental Out-of-Pocket Expenses expended in
respect of specific services rendered to individual Customer Companies or to
Service Company are separately recorded.
5. (a) Chargeable hours and incremental Out-of-Pocket Expenses expended for a
group of Operating Companies are allocated to each Operating Company in
the group based on the ratio that the Allocation Factor of such
Operating Company, determined as hereinafter provided, bears to the
total of the Allocation Factors of all the Operating Companies in such
group.
(b) Chargeable hours and incremental Out-of-Pocket Expenses expended for a
group which includes APS are allocated among the constituent companies
initially on the basis of 25% to APS and 75% to the Operating Companies
in such group. The portion thus allocated to the Operating Companies
is thereupon distributed among such companies in accordance with the
Allocation Factors applicable to such companies, determined as
hereinafter provided.
Effective January 1, 1994 Chargeable hours and incremental Out-of-
Pocket Expenses expended for a group which includes APS will be
allocated among the constituent companies on the basis of the average
of the prior three years' direct costs charged by the Service Company
to each Operating Company and APS.
6. The Allocation Factor applicable to an Operating Company during any year is
the average of the quotients of:
(a) The total electric operating revenues of such Operating Company
(excluding revenues from sales to Operating Companies) for the three
years immediately preceding the current year divided by the total of
such revenues of all Operating Companies for the three-year period;
(b) The total expenses of such Operating Company (excluding costs of power
purchased from other utilities and fuel costs) charged to Operating and
Maintenance Expense Accounts under the Uniform System of Accounts
prescribed for Public Utilities and Licensees subject to the provisions
of the Federal Power Act for the same three-year period divided by the
total of such expenses of all Operating Companies for the same period;
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37B
ANNUAL REPORT OF Allegheny Power Service Corporation
METHODS OF ALLOCATION
(c) The total number of kwhs sold by such Operating Company to regular
customers (excluding other Operating Companies) during the same three-
year period divided by the total number of kwhs so sold by all
Operating Companies during the three years; and
(d) The sum of the total amounts of electric plant in service on the books
of such Operating Company (less reserves for depreciation and
amortization) at the close of each of the three years immediately
preceding the current year divided by the sum of the total amounts of
electric plant in service (less reserves for depreciation and
amortization) on the books of all Operating Companies at the close of
each of such three years.
(e) If the use of the aforesaid bases of allocation results in inequity,
the bases of allocation are adjusted so as to effect a more equitable
distribution of group service charges based upon more appropriate
functional relationships between the services rendered and the
allocation formula employed.
7. The amount of Departmental Expenses charged to a Customer Company or to
Service Company are the sum of the products obtained by multiplying the
estimated hourly departmental expense billing rate in respect of each
Group A employee by the sum of (a) the number of Chargeable Hours expended
by each such Group A employee on services performed specifically for such
Customer Company or Service Company as described in Section 4. above, and
(b) the number of Chargeable Hours of each such Group A employee allocated
to such Customer Company in respect of services performed for Groups of
Customer Companies of which the aforesaid company is a constituent member,
as described in Section 5. above.
8. Overhead Expenses (as defined in Section 2.(c)(ii) above), cost of services
rendered to Service Company and Compensation for Use of Capital (as defined
in Section 2.(c)(iii) above) are distributed among Customer Companies in
direct proportion to the amounts of Departmental Expenses charged to or
allocated to such companies, as described in Sections 4. and 5. above,
respectively.
9. The total cost of a particular service rendered to a specified Customer
Company is the sum of the Departmental Expenses, Overhead Expenses, cost of
services rendered to Service Company, Compensation for Use of Capital, and
incremental Out-of-Pocket Expenses which are applicable to such Company in
respect of such service.
10. The total cost of a particular service rendered to a specific group of
Customer Companies is the sum of the amounts of the Departmental Expenses,
Overhead Expenses, costs of services rendered to Service Company,
Compensation for Use of Capital, and incremental Out-of-Pocket Expenses
which are applicable to such group of companies in respect of such service.
11. Whenever the charges to individual Customer Companies for services rendered
are based upon estimates of Service Company's costs, such service charges
are adjusted to actual cost at the end of each year, as required by the
terms of Rule 90(a)(2) promulgated under the 1935 Act.
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38
ANNUAL REPORT OF Allegheny Power Service Corporation
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
To: C. V. Burkley April 11, 1994
K. M. Jones, New York
T. J. Kloc, Hagerstown
R. E. Myers, Fairmont
Compensation for Use of Capital
(In Accordance with SEC Uniform System of Accounts,
Instruction 01-12)
Compensation for use of capital of Allegheny Power Service
Corporation for 1993 arises from interest on a $2,500,000 promissory note to
Allegheny Power System, Inc. (APS) dated January 1, 1993. This note bears
interest at a rate equal to the average interest rate on short-term borrowings
by APS during each calendar quarter, or for any quarter during which APS had
no short-term borrowings outstanding, at the prime rate in effect during the
quarter. Such rates averaged 3.93% in 1993 resulting in total interest
expenses of $98,251.65 which were allocated to the associate companies based
on the proportion of total billings to such companies, excluding compensation
for use of capital and indirect and incremental costs, as follows:
Total Billings, Excluding
Compensation for Use Compensation
of Capital and Indirect for Use
and Incremental Costs of Capital
$ % $
Allegheny Power System, Inc. $ 604,993.94 .76% $ 746.71
Monongahela Power Company (1) 24,630,035.65 31.08 30,536.61
The Potomac Edison Company 18,490,322.02 23.34 22,931.94
West Penn Power Company (2) 35,440,916.80 44.75 43,967.61
Allegheny Generating Company 52,858.40 .07 68.78
Allegheny Pittsburgh Coal Co. 1,765.53 - -
Total $79,220,892.34 100.00% $ 98,251.65
(1) Includes billings applicable to Davis power station project and to
Albright, Fort Martin, Harrison, and Pleasants power stations operations
and construction which are redistributed to owners in accordance with
their ownership percentages.
(2) Includes billings applicable to Hatfield power station operations and
construction which are redistributed to owners in accordance with their
ownership percentages.
ROBERT D. REEPING
Robert D. Reeping
<PAGE>
39
ANNUAL REPORT OF Allegheny Power Service Corporation
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility
Holding Company Act of 1935 and the rules and regulations of the
Securities and Exchange Commission issued thereunder, the
undersigned company has duly caused this report to be signed
on its behalf by the undersigned officer thereunto duly
authorized.
Allegheny Power Service Corporation
(Name of Reporting Company)
By: ROBERT D. REEPING
(Signature of Signing Officer)
Robert D. Reeping, Assistant Comptroller
(Printed Name and Title of Signing Officer)
Date: April 26, 1994
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