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, 1994 and Ending December 31, 1994
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)
<PAGE>
1
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
1994 1993
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) 2,320,097 1,809,953
107 Construction work in progress (Schedule II) 0 0
Total Property 2,320,097 1,809,953
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) 683,606 528,460
Net Service Company Property 1,636,491 1,281,493
INVESTMENTS
123 Investments in associate companies
(Schedule IV) 0 0
124 Other investments (Schedule IV) 10,500 7,000
Total Investments 10,500 7,000
CURRENT AND ACCRUED ASSETS
131 Cash 24,697 75,289
134 Special deposits 0 0
135 Working funds 34,052 62,615
136 Temporary cash investments (Schedule IV) 0 0
141 Notes receivable 0 0
143 Accounts receivable 455,758 421,678
144 Accumulated provision of uncollectible
accounts 0 0
146 Accounts receivable from associate
companies (Schedule V) 6,614,756 4,472,246
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 0 580
174 Miscellaneous current and accrued
assets (Schedule VIII) 0 21,882
Total Current and Accrued Assets 7,129,263 5,054,290
DEFERRED DEBITS
181 Unamortized debt expense 0 0
184 Clearing accounts 375 698
186 Miscellaneous deferred debits (Schedule IX) 59,883 1,768,800
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income taxes 2,262,305 1,645,969
Total Deferred Debits 2,322,563 3,415,467
TOTAL ASSETS AND OTHER DEBITS 11,098,817 9,758,250
<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 0
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 0
CURRENT AND ACCRUED LIABILITIES
231 Notes payable 0 0
232 Accounts payable 4,305,539 2,981,491
233 Notes payable to associate
companies (Schedule XIII) 0 0
234 Accounts payable to associate
companies (Schedule XIII) 4,427 1,884,541
236 Taxes accrued 971,938 36,112
237 Interest accrued 0 0
238 Dividends declared 0 0
241 Tax collections payable 186,867 192,114
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 4,377,286 4,057,347
Total Current and Accrued Liabilities 9,846,057 9,151,605
DEFERRED CREDITS
253 Other deferred credits 1,202,760 556,645
255 Accumulated deferred investment tax credits 0 0
Total Deferred Credits 1,202,760 556,645
282 ACCUMULATED DEFERRED INCOME TAXES 0 0
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 11,098,817 9,758,250
<PAGE>
6
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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 836,368 836,368
307 EQUIPMENT 2/ 293,629 950,592 (459,287) 784,934
308 OFFICE FURNITURE
AND EQUIPMENT 679,956 18,839 698,795
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY 3/
SUBTOTAL 1,809,953 969,431 (459,287) 2,320,097
107 CONSTRUCTION WORK
IN PROGRESS
TOTAL 1,809,953 969,431 (459,287) 2,320,097
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 947,259 658,560
Communications equipment 3,333 126,374
TOTAL 950,592 784,934
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, 1994
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 324,449 79,756 404,205
307 EQUIPMENT 28,057 11,768 39,825
308 OFFICE
FURNITURE
AND FIXTURES 175,954 63,622 239,576
309 AUTOMOBILES,
OTHER VEHICLES
AND RELATED
GARAGE EQUIP.
310 AIRCRAFT AND
AIRPORT
EQUIPMENT
311 OTHER SERVICE
COMPANY
PROPERTY
TOTAL 528,460 155,146 683,606
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, 1994
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
AirScrip Certificates 0 3,500
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
None.
TOTAL 7,000 10,500
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10
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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. 896,834 109,303
Monongahela Power Company 2,603 1,458,169
The Potomac Edison Company 0 1,575,984
West Penn Power Company 3,577,887 3,458,823
Allegheny Generating Company (6,589) 11,663
Allegheny Pittsburgh Coal Company 1,511 814
TOTAL 4,472,246 6,614,756
ANALYSIS OF CONVENIENCE OR ACCOMODATION PAYMENTS:
Monongahela The Potomac West Penn
DESCRIPTION Power Edison Power TOTAL
Company Company Company PAYMENTS
Employee expenses, safety
awards, training, and
manuals 25,766 14,517 31,111 71,394
DP equipment and software 3,583 227 51,423 55,233
Printing expenses 17,480 13,040 16,820 47,340
Engineering services 11,946 0 0 11,946
Communication equipment 0 0 8,724 8,724
Company vehicle expenses 0 0 3,909 3,909
Other outside services 0 0 2,830 2,830
Network subscription 426 256 383 1,065
service
TOTAL PAYMENTS 59,201 28,040 115,200 202,441
<PAGE>
11
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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:
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12
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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, 1994
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 21,882 0
TOTAL 21,882 0
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14
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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 1,768,800 0
NY Headquarters security deposit 0 58,458
Miscellaneous (2) 0 1,425
TOTAL 1,768,800 59,883
<PAGE>
15
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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
Distribution Feeder Operational Analysis 10,983
Storm Warning System 17,553
Evaluation of Distribution Planning And Design Methods 8,143
Administrative - Area 1 - General R&D Support 12,182
Administrative - Area 2 - Generation Performance 10,756
Administrative - Area 3 - Generation Environmental 58,581
Administrative - Area 4 - Transmission 12,760
Administrative - Area 5 - Distribution 39,689
Administrative - Area 6 - Utilization/Economic Development 41,218
Administrative - Area 7 - System Operations and Analysis 12,477
Administrative - Area 8 - Information Systems 23,021
Administrative - Area 9 - Alternate Energy 12,899
DOE Developmental Fixed Bed Gasifier 31,326
Shell Coal Gasification Technology Transfer Program 7,817
Dist. Systems Testing, Applications, and Research Program 14,453
Optical Current Transformers 10,163
Evaluation of MIS Transformer Gas Analyzer 13,451
Field Test of Boiler Tube Coatings 9,924
Use of Passive Treatment Wetland Systems at Springdale P.S. 19,390
Miscellaneous (30 projects under $5,000 each) 45,557
TOTAL 412,343
<PAGE>
<TABLE>
<CAPTION>
16
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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
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
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
17
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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.
TERMS OF OBLIG DATE BALANCE AT BALANCE
NAME OF CREDITOR CLASS & SERIES OF INTEREST AMOUNT BEGINNING AT CLOSE
OF OBLIGATION MATURITYRATE AUTHORIZED OF YEAR ADDITIONSDEDUCTIONS OF YEAR
ACCOUNT 223-ADVANCES FROM
ASSOCIATE
COMPANIES:
None.
ACCOUNT 224-OTHER LONG-TERM
DEBT:
None.
<S> <C> <C> <C> <C>
TOTAL 0 0 0 0
</TABLE>
<PAGE>
18
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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. 386,585 0
The Potomac Edison Company 502,147 128
West Penn Power Company 890 4,218
Monongahela Power Company 994,919 81
TOTAL 1,884,541 4,427
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Employee benefits - pension plan 3,886,759 3,767,759
Capital leases 170,588 609,527
TOTAL 4,057,347 4,377,286
<PAGE>
19
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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, 1994
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
INCOME
457 Services rendered to associate companies 95,989,759 87,898,989
458 Services rendered to nonassociate
companies 0 0
421 Miscellaneous income or loss 7,375 3,896
Total Income 95,997,134 87,902,885
EXPENSE
920 Salaries and wages 46,657,218 44,073,708
921 Office supplies and expenses 4,486,827 4,745,728
922 Administrative expense transferred -
credit (1,039,182) (630,022)
923 Outside services employed 9,048,419 6,774,436
924 Property insurance 3,403 11,609
925 Injuries and damages 383,973 146,362
926 Employee pensions and benefits 10,183,919 8,215,042
928 Regulatory commission expense 1,039,182 630,022
930.1 General advertising expenses 0 0
930.2 Miscellaneous general expenses 39,095 38,386
931 Rents 20,292,397 19,727,864
935 Maintenance of structures and
equipment 1,171,257 993,643
403 Depreciation and amortization expense 155,146 152,391
408 Taxes other than income taxes 3,469,509 3,285,333
409 Income taxes 680,173 468,412
410 Provision for deferred income taxes 857,044 128,955
411 Provision for deferred income taxes -
credit (1,473,380) (955,866)
411.5 Investment tax credit 0 0
426.1 Donations 315 390
426 Other deductions 2 0
427 Interest on long-term debt 0 0
430 Interest on debt to associate
companies 0 98,252
431 Other interest expense 41,817 (1,760)
Total Expense 95,997,134 87,902,885
Net Income or (Loss) 0 0
<PAGE>
21
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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 29,103,651 1,112,363 0 30,216,014
The Potomac Edison Company 20,756,851 838,255 0 21,595,106
West Penn Power Company 41,857,926 1,655,510 0 43,513,436
Allegheny Power System, Inc. 475,372 11,587 0 486,959
Allegheny Generating Company 169,635 2,897 0 172,532
Allegheny Pittsburgh Coal Co. 5,350 362 0 5,712
TOTAL 92,368,785 3,620,974 0 95,989,759
<PAGE>
<TABLE>
<CAPTION>
22
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
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.
TOTAL
INSTRUCTION: Provide a brief description of the services rendered to
each nonassociate company:
</TABLE>
<PAGE>
ANNUAL REPORT OF Allegheny Power Service Corporation
23
For the Year Ended December 31, 1994
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 45,857,530 799,688 46,657,218
921 OFFICE SUPPLIES AND EXPENSES 4,370,493 116,334 4,486,827
922 ADMIN. EXP. TRANSFERRED - CREDIT (1,039,182) 0 (1,039,182)
923 OUTSIDE SERVICES EMPLOYED 7,444,653 1,603,766 9,048,419
924 PROPERTY INSURANCE 3,403 0 3,403
925 INJURIES AND DAMAGES 383,973 0 383,973
926 EMPLOYEE PENSIONS AND BENEFITS 9,934,365 249,554 10,183,919
928 REGULATORY COMMISSION EXPENSE 1,039,182 0 1,039,182
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 39,051 44 39,095
931 RENTS 19,806,848 485,549 20,292,397
935 MAINTENANCE OF STRUCTURES AND EQUIP. 1,154,325 16,932 1,171,257
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 155,146 155,146
408 TAXES OTHER THAN INCOME TAXES 3,373,829 95,680 3,469,509
409 INCOME TAXES 0 680,173 680,173
410 PROVISION FOR DEFERRED INCOME TAXES 0 857,044 857,044
411 PROV. FOR DEFERRED INCOME TAXES - CR. 0 (1,473,380) (1,473,380)
411.5 INVESTMENT TAX CREDIT 0 0 0
421 MISCELLANEOUS INCOME 0 (7,375) (7,375)
426.1 DONATIONS 315 0 315
426 OTHER DEDUCTIONS 0 2 2
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 0 41,817 41,817
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 92,368,785 3,620,974 95,989,759
COMPENSATION FOR USE OF EQUITY CAPITAL
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
TOTAL COST OF SERVICE 92,368,785 3,620,974 95,989,759
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation 23A
For the Year Ended December 31, 1994
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE
DIRECT INDIRECT DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL
<S> <C> <C> <C>
920 SALARIES AND WAGES 45,857,530 799,688 46,657,218
921 OFFICE SUPPLIES AND EXPENSES 4,370,493 116,334 4,486,827
922 ADMINISTRATIVE EXPENSE TRANSFERRED - CREDIT (1,039,182) 0 (1,039,182)
923 OUTSIDE SERVICES EMPLOYED 7,444,653 1,603,766 9,048,419
924 PROPERTY INSURANCE 3,403 0 3,403
925 INJURIES AND DAMAGES 383,973 0 383,973
926 EMPLOYEE PENSIONS AND BENEFITS 9,934,365 249,554 10,183,919
928 REGULATORY COMMISSION EXPENSE 1,039,182 0 1,039,182
930.1 GENERAL ADVERTISING EXPENSES 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 39,051 44 39,095
931 RENTS 19,806,848 485,549 20,292,397
935 MAINTENANCE OF STRUCTURES AND EQUIP. 1,154,325 16,932 1,171,257
403 DEPRECIATION AND AMORTIZATION EXPENSE 0 155,146 155,146
408 TAXES OTHER THAN INCOME TAXES 3,373,829 95,680 3,469,509
409 INCOME TAXES 0 680,173 680,173
410 PROVISION FOR DEFERRED INCOME TAXES 0 857,044 857,044
411 PROV. FOR DEFERRED INCOME TAXES - CR. 0 (1,473,380) (1,473,380)
411.5 INVESTMENT TAX CREDIT 0 0 0
421 MISCELLANEOUS INCOME 0 (7,375) (7,375)
426.1 DONATIONS 315 0 315
426 OTHER DEDUCTIONS 0 2 2
427 INTEREST ON LONG-TERM DEBT 0 0 0
431 OTHER INTEREST EXPENSE 0 41,817 41,817
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 92,368,785 3,620,974 95,989,759
COMPENSATION FOR USE OF EQUITY CAPITAL
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 0 0 0
TOTAL COST OF SERVICE 0 0 0 92,368,785 3,620,974 95,989,759
</TABLE>
<PAGE>
ANNUAL REPORT OF Allegheny Power Service Corporation 24
For the Year Ended December 31, 1994
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR
SERVICE FUNCTION
FIELD:
BPS
TOTAL ADMIN-
DESCRIPTION OF ITEMS AMOUNT OVERHEAD ISTRATIVE
920 SALARIES AND WAGES 46,657,218 118,434 695,215
921 OFFICE SUPPLIES AND EXPENSES 4,486,827 24,412 6,753
922 ADMINISTRATIVE EXPENSES
TRANSFERRED - CREDIT (1,039,182) 0 (3,721)
923 OUTSIDE SERVICES EMPLOYED 9,048,419 1,564,167 4,040
924 PROPERTY INSURANCE 3,403 0 0
925 INJURIES AND DAMAGES 383,973 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 10,183,919 49,583 129,443
928 REGULATORY COMMISSION EXPENSE 1,039,182 0 3,721
930.1 GENERAL ADVERTISING EXPENSE 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSE 39,095 0 0
931 RENTS 20,292,397 442,652 11,825
935 MAINTENANCE OF STRUCTURES
AND EQUIP. 1,171,257 12 0
403 DEPRECIATION AND
AMORTIZATION EXP. 155,146 155,146 0
408 TAXES OTHER THAN INCOME TAXES 3,469,509 49,257 46,217
409 INCOME TAXES 680,173 680,173 0
410 PROVISION FOR DEFERRED
INCOME TAXES 857,044 857,044 0
411 PROV. FOR DEFERRED
INCOME TAXES - CR. (1,473,380) (1,473,380) 0
411.5 INVESTMENT TAX CREDIT 0 0 0
426.1 DONATIONS 315 0 0
426 OTHER DEDUCTIONS 2 2 0
427 INTEREST ON LONG-TERM DEBT 0 0 0
430 INTEREST ON DEBT TO
ASSOCIATE COMPANIES 0 0 0
431 OTHER INTEREST EXPENSE 41,817 41,817 0
INSTRUCTION: Indicate each department
or service function. (See Instruction
01-3 General Structure of Accounting
System: Uniform System of Accounts.)
TOTAL EXPENSES 95,997,134 2,509,319 893,493
<PAGE>
ANNUAL REPORT OF Allegheny Power Service Corporation 24A
For the Year Ended December 31, 1994
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
PROJECT
DESCRIPTION OF ITEMS COST PLANNING ENGINEERING CONSTRUCTION
920 SALARIES AND WAGES 705,571 3,878,307 10,553,324 2,432,697
921 OFFICE SUPPLIES AND EXPENSES 49,219 332,146 894,199 352,908
922 ADMINISTRATIVE EXPENSES
TRANSFERRED - CREDIT (75) (20,774) 0 (9,036)
923 OUTSIDE SERVICES EMPLOYED 509,100 216,386 415,450 107,922
924 PROPERTY INSURANCE 0 0 0 0
925 INJURIES AND DAMAGES 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 169,640 841,564 2,221,693 520,849
928 REGULATORY COMMISSION EXPENSE 75 20,774 0 9,036
930.1 GENERAL ADVERTISING EXPENSE 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSE 0 2,022 16,455 2,125
931 RENTS 797,173 599,871 2,033,670 369,599
935 MAINTENANCE OF STRUCTURES
AND EQUIP. 5,033 5,551 27,251 4,798
403 DEPRECIATION AND
AMORTIZATION EXP. 0 0 0 0
408 TAXES OTHER THAN INCOME TAXES 52,985 292,780 798,439 184,208
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 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 2,288,721 6,168,627 16,960,481 3,975,106
<PAGE>
ANNUAL REPORT OF Allegheny Power Service Corporation 25
For the Year Ended December 31, 1994
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
CS ADMIN., INFOR. SERV. HEADQUARTERS:
PERSONNEL, LEGAL, RISK EXECUTIVE
RATES PURCHASING, MGMT., FIN. AND
ACCOUNT AND PROCEDURES, PLNG., & ADMINI-
NUMBER OPERATING ACCOUNTING & SECURITY CORP. DEV. STRATION
920 8,392,740 3,311,546 4,956,467 8,995,927 700,240
921 969,019 164,430 417,363 805,377 104,888
922 (56,099) (823,641) 0 (125,372) 0
923 497,493 307,532 186,545 5,178,955 1,416
924 0 0 0 3,403 0
925 0 3,016 0 380,957 0
926 1,840,862 684,526 1,300,775 1,906,496 128,070
928 56,099 823,641 0 125,372 0
930.1 0 0 0 0 0
930.2 3,370 250 2,100 1,273 1,500
931 6,038,243 460,265 797,709 8,172,611 60,661
935 12,499 5,291 20,031 1,075,688 1,626
403 0 0 0 0 0
408 627,719 247,231 371,370 678,620 30,953
409 0 0 0 0 0
410 0 0 0 0 0
411 0 0 0 0 0
411.5 0 0 0 0 0
426.1 0 0 200 0 0
426 0 0 0 0 0
427 0 0 0 0 0
430 0 0 0 0 0
431 0 0 0 0 0
18,381,945 5,184,087 8,052,560 27,199,307 1,029,354
<PAGE>
ANNUAL REPORT OF Allegheny Power Service Corporation 25A
For the Year Ended December 31, 1994
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
EMPLOYEE &
LEGAL RATES CUSTOMER &
ACCOUNT AND BULK AND PUBLIC
NUMBER SECRETARY POWER ACCOUNTING FINANCIAL RELATIONS
920 478,732 285,761 213,111 614,120 325,026
921 133,384 48,735 18,507 99,524 65,963
922 0 0 (464) 0 0
923 5,027 189 23 21,767 32,407
924 0 0 0 0 0
925 0 0 0 0 0
926 89,742 50,435 51,711 136,691 61,839
928 0 0 464 0 0
930.1 0 0 0 0 0
930.2 0 10,000 0 0 0
931 224,087 44,406 43,030 121,682 74,913
935 13,060 0 0 417 0
403 0 0 0 0 0
408 22,119 12,472 9,185 27,805 18,149
409 0 0 0 0 0
410 0 0 0 0 0
411 0 0 0 0 0
411.5 0 0 0 0 0
426.1 105 0 0 10 0
426 0 0 0 0 0
427 0 0 0 0 0
430 0 0 0 0 0
431 0 0 0 0 0
966,256 451,998 335,567 1,022,016 578,297
<PAGE>
26
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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 682,831 1,955 680,876 5
Project Cost 531,068 3,378 527,690 27
Planning 3,896,787 1,245 3,895,542 75
Engineering 10,694,054 4,619 10,689,435 195
Construction 2,383,414 521 2,382,893 61
Operating 8,522,932 1,238 8,521,694 147
Rates and Accounting 3,321,874 19,863 3,302,011 56
CS Administrative, Per-
sonnel, Purchasing,
Procedures, and Security 4,971,457 4,971,457 114
Information Services,
Legal, Risk Management,
Financial Planning,
and Corporate Development 9,027,945 54,802 8,973,143 184
Headquarters:
Executive and Adminis-
trative 702,230 35,687 666,543 3
Legal and Secretarial 480,224 35,693 444,531 9
Bulk Power Supply 287,752 153 287,599 2
Rates and Accounting 212,931 473 212,458 1
Financial 616,371 15,541 600,830 6
Employee & Customer Rela-
tions and Public Infor-
mation 325,348 835 324,513 4
TOTAL 46,657,218 176,003 46,481,215 889
<PAGE>
27
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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 415,074
Canonsburg, PA 15317
American Software, Inc. P.O. Box 101593 NA 78,003
Atlanta, GA 30392
BMC Software, Inc. Nationsbank Texas NA 47,517
P.O. Box 840043
Dallas, TX 75284-0043
Candle Corp. P.O. Box 92278 NA 111,824
Chicago, IL 60675-2278
Cincom Systems, Inc. Department 405 NA 175,264
Cincinnati, OH 45296
Computer Associates P.O. Box 360355 NA 164,072
International, Inc. Pittsburgh, PA
15251-6355
Compuware Corporation Drawer #64376 NA 169,093
Detroit, MI 48264-0376
Corporate Software, P.O. Box 3514 NA 66,792
Inc. Boston, MA 02241
<PAGE>
27A
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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)
Digital Equipment P.O. Box 360566M NA 27,784
Corporation Pittsburgh, PA
15251-6566
International P.O. Box 91945 NA 1,112,743
Business Machines Chicago, IL 60695
Information Technology 777 Penn Ctr. Blvd. NA 104,498
Solutions, Inc. Suite 600
Pittsburgh, PA
15235-5906
Integraph Corporation P.O. Box 13700 NA 98,827
Newark, NJ 07188-0700
KCS Computer Service, 777 Penn Center Blvd. NA 370,172
Inc. Suite 600
Pittsburgh, PA
15235-5906
Legent Corporation Department #1709 NA 103,942
Columbus, OH 43271-1709
Lucas Management P.O. Box 101514 NA 50,160
Systems Atlanta, GA 30392
<PAGE>
27B
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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)
Manager Software P.O. Box 5-0405 NA 38,842
Product Inc. Woburn, MA 01815-0405
McGladrey & Pullen 445 Minnesota Street NA 56,199
National Info. Tech. St. Paul, MN 55101
Consulting Corp.
Montare International 15303 Dallas Parkway NA 207,795
Suite 1060 LB 22
Dallas, TX 75248
Must Software P.O. Box 120228 NA 116,217
International Stanford, CT
06912-228
S.A.S. Institute, Inc. P.O. Box 65505 NA 55,700
Charlotte, NC 28265
Sterling Software, Inc.P.O. Box 73199 NA 151,130
Chicago, IL 60673
Storage Technology P.O. Box 14090 NA 26,883
Corporation Newark, NJ 07198
<PAGE>
27C
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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)
Texas Instruments, Inc. P.O. Box 198645 NA 127,810
Atlanta, GA 30384-8645
Miscellaneous - 106 vendors NA 456,973
4,333,314
Engineering Service:
Putnam, Hayes, & One Memorial Drive NA 50,880
Bartlett, Inc. Cambridge, MA 02142
Miscellaneous - 2 vendors NA 4,896
55,776
Legal Service:
Carter, Ledyard, & 2 Wall Street NA 106,724
Milburn New York, NY 10005
Dolgin & Associates Suite 800 NA 80,976
7800 Forsyth Blvd.
St. Louis, MO 63105
<PAGE>
27D
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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: (continued)
Squire, Sanders 4900 Society Center NA 69,807
& Dempsey 127 Public Square
Cleveland, OH
44114-1304
Miscellaneous - 8 vendors NA 9,746
267,253
Medical Service:
Miscellaneous - 1 vendor NA 225
Rates Service:
Miscellaneous - 1 vendor NA 3,795
Other Service:
Antech Limited One Triangle Drive NA 30,587
Export, PA 15632
Chester Environmental P.O. Box 641421 NA 62,711
Pittsburgh, PA
15624-1421
Putnam, Hayes, & One Memorial Drive NA 863,436
Bartlett, Inc. Cambridge, MA 02142
<PAGE>
27E
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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: (continued)
SE Technologies, Inc. 98 Vanadium Road NA 437,219
Bridgeville, PA 15017
Miscellaneous - 94 vendors NA 302,336
1,696,289
West Penn Power Company Charges:
Principally payroll, accounting,
billing control, personnel, and
general office services at cost
for the field operation depart-
ments. A 2,691,767
Total 9,048,419
<PAGE>
28
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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 2,422,887
Postretirement benefits other than pensions 2,673,825
Corporate pension plan 2,747,340
Savings plan expense 1,137,630
Group life insurance 426,641
Employee education assistance 245,408
Group dental 203,507
Employee moving expense 121,512
Home sale plan payments 64,780
Long-term disability expense 46,350
Meal allowances 38,210
Medical fees for employees 34,792
Miscellaneous (5) 21,037
TOTAL 10,183,919
<PAGE>
29
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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, 1994
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 36,075
Miscellaneous 3,020
TOTAL 39,095
<PAGE>
31
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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 8,721,130
Power control center equipment and space 3,220,453
Microwave and telecommunications equipment 2,350,222
Other office space 5,185,438
Other office furniture and equipment 637,803
Miscellaneous 177,351
TOTAL 20,292,397
<PAGE>
32
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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 152,380
New York City commercial rent or occupancy tax 43,136
New York City general occupation tax 2,800
Franchise tax 6,606
(2) U.S. Government Taxes:
FICA 3,212,666
Federal unemployment 51,921
TOTAL 3,469,509
<PAGE>
33
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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) 315
TOTAL 315
<PAGE>
34
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1994
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, 1994
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
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
PRESIDENT AND CHIEF OPERATING 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
DIRECTOR, ENVIRONMENTAL SERVICES
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, ENGINEERING STUDIES
MANAGER, RESEARCH AND DEVELOPMENT
<PAGE>
36A
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF OPERATING 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, 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
COORDINATOR, HUMAN RESOURCES
<PAGE>
36B
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF OPERATING 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
DIRECTOR, PROJECT COST
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 OPERATING OFFICER (CONTINUED)
VICE PRESIDENT (ADMINISTRATION)
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
DIRECTOR, HUMAN RESOURCES POLICY DEVELOPMENT
COORDINATOR, HUMAN RESOURCES
COORDINATOR, EQUAL EMPLOYMENT OPPORTUNITY
DIRECTOR, SYSTEM SECURITY
DIRECTOR, PUBLIC INFORMATION
VICE PRESIDENT (LEGAL AND REGULATORY)
DIRECTOR, LEGAL SERVICES
SECRETARY
<PAGE>
36D
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF OPERATING OFFICER (CONTINUED)
SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
DIRECTOR, FINANCIAL MANAGEMENT
MANAGER, CORPORATE RISK MANAGEMENT
MANAGER, FINANCIAL PLANNING
INVESTOR RELATIONS ADMINISTRATOR*
VICE PRESIDENT AND TREASURER
MANAGER, CORPORATE DEVELOPMENT
ASSISTANT TREASURER
INVESTOR RELATIONS ADMINSTRATOR*
SENIOR VICE PRESIDENT (APSC) AND PRESIDENT (MP, PE & WPP)
EXECUTIVE VICE PRESIDENT (PE)
VICE PRESIDENT (MP)
VICE PRESIDENT (WPP)
VICE PRESIDENT (MP, PE & WPP)
VICE PRESIDENT, LEGAL SERVICES (MP & PE)
EXECUTIVE DIRECTOR, CUSTOMER RELATIONS (MP, PE & WPP)
EXECUTIVE DIRECTOR, ENGINEERING AND CONSTRUCTION (MP, PE & WPP)
ASSISTANT TO THE PRESIDENT
* REPORTS TO SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER & VICE
PRESIDENT AND TREASURER.
NOTE: MONONGAHELA POWER COMPANY (MP), THE POTOMAC EDISON COMPANY (PE),
WEST PENN POWER COMPANY (WPP)
<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 and;
(ii) Service Company's Overhead Expenses. Such expenses include, among
others, costs of maintaining the corporate existence of Service
Company; 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.
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.
<PAGE>
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
on the basis of the average of the prior three years' direct costs
charged by the Service Company to each Operating Company and APS. 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.
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;
<PAGE>
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) and cost of
services rendered to Service Company 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, 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, 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.
<PAGE>
38
ANNUAL REPORT OF Allegheny Power Service Corporation
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
None.
<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:
(Signature of Signing Officer)
Robert D. Reeping, Assistant Comptroller
(Printed Name and Title of Signing Officer)
Date: April 24, 1995
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