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, 1995 and Ending December 31, 1995
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 :
10435 Downsville Pike
Thomas J. Kloc, Controller Hagerstown, MD 21740-1766
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company :
Allegheny Power System, Inc.
SEC 1926 (6-82)
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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.
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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
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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
1995 1994
SERVICE COMPANY PROPERTY
<S> <C> <C>
101 Service company property (Schedule II) 1,749,831 2,320,097
107 Construction work in progress (Schedule II) 0 0
Total Property 1,749,831 2,320,097
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) 957,429 683,606
Net Service Company Property 792,402 1,636,491
INVESTMENTS
123 Investments in associate companies
(Schedule IV) 0 0
124 Other investments (Schedule IV) 8,699 10,500
Total Investments 8,699 10,500
CURRENT AND ACCRUED ASSETS
131 Cash 640 24,697
134 Special deposits 0 0
135 Working funds 34,509 34,052
136 Temporary cash investments (Schedule IV) 0 0
141 Notes receivable 0 0
143 Accounts receivable 866,586 455,758
144 Accumulated provision of uncollectible
accounts 0 0
146 Accounts receivable from associate
companies (Schedule V) 18,205,825 6,614,756
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 995,886 0
174 Miscellaneous current and accrued
assets (Schedule VIII) 0 0
Total Current and Accrued Assets 20,103,446 7,129,263
DEFERRED DEBITS
181 Unamortized debt expense 0 0
184 Clearing accounts 489 375
186 Miscellaneous deferred debits (Schedule IX) 59,883 59,883
188 Research, development, or demonstration
expenditures (Schedule X) 0 0
190 Accumulated deferred income taxes 1,894,364 2,262,305
Total Deferred Debits 1,954,736 2,322,563
TOTAL ASSETS AND OTHER DEBITS 22,859,283 11,098,817
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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
<S> <C> <C>
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 4,140,995 4,305,539
233 Notes payable to associate
companies (Schedule XIII) 0 0
234 Accounts payable to associate
companies (Schedule XIII) 34,717 4,427
236 Taxes accrued 539,780 971,938
237 Interest accrued 0 0
238 Dividends declared 0 0
241 Tax collections payable 206,407 186,867
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 17,191,079 4,377,286
Total Current and Accrued Liabilities 22,112,978 9,846,057
DEFERRED CREDITS
253 Other deferred credits 696,305 1,202,760
255 Accumulated deferred investment tax credits 0 0
Total Deferred Credits 696,305 1,202,760
282 ACCUMULATED DEFERRED INCOME TAXES 0 0
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 22,859,283 11,098,817
</TABLE>
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<TABLE>
<CAPTION>
6
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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
<S> <C> <C> <C> <C>
IMPROVEMENTS 836,368 836,368
307 EQUIPMENT 2/ 784,934 (606,243) 178,691
308 OFFICE FURNITURE
AND EQUIPMENT 698,795 35,977 734,772
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY 3/
SUBTOTAL 2,320,097 35,977 (606,243) 1,749,831
107 CONSTRUCTION WORK
IN PROGRESS
TOTAL 2,320,097 35,977 (606,243) 1,749,831
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Amortization of capitalized leases.
</TABLE>
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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 52,317
Communications equipment 0 126,374
TOTAL 0 178,691
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, 1995
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 404,205 195,525 599,730
307 EQUIPMENT 39,825 11,935 51,760
308 OFFICE
FURNITURE
AND FIXTURES 239,576 66,363 305,939
309 AUTOMOBILES,
OTHER VEHICLES
AND RELATED
GARAGE EQUIP.
310 AIRCRAFT AND
AIRPORT
EQUIPMENT
311 OTHER SERVICE
COMPANY
PROPERTY
TOTAL 683,606 273,823 957,429
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, 1995
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 3,500 1,699
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
None.
TOTAL 10,500 8,699
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10
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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 BEGINNING CLOSE
OF YEAR OF YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
Allegheny Power System, Inc. 109,303 23,928
Monongahela Power Company 1,458,169 4,380,120
The Potomac Edison Company 1,575,984 5,271,554
West Penn Power Company 3,458,823 8,345,436
Allegheny Generating Company 11,663 5,223
Allegheny Pittsburgh Coal Company 814 620
AYP Capital, Inc. 0 179,082
Davis Power Project 0 (138)
TOTAL 6,614,756 18,205,825
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 63,022 13,243 62,268 138,533
DP equipment and software 1,569 0 0 1,569
Printing expenses 1,033 351 772 2,156
Engineering services 0 0 0 0
Communication equipment 0 0 0 0
Company vehicle expenses 0 0 3,991 3,991
Other outside services 0 116 3,613 3,729
Network subscription 211 127 862 1,200
service
TOTAL PAYMENTS 65,835 13,837 71,506 151,178
<PAGE>
11
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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, 1995
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
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13
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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
None.
TOTAL 0 0
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14
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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
NY Headquarters security deposit 58,458 58,458
Miscellaneous (2) 1,425 1,425
TOTAL 59,883 59,883
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15
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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
Storm Warning System 17,288
Evaluation of Dist. Planning & Design Methods 6,719
Administrative - Area 1 - General R&D Support 38,713
Administrative - Area 2 - Generation Performance 18,399
Administrative - Area 3 - Generation Environmental 45,862
Administrative - Area 4 - Transmission 18,278
Administrative - Area 5 - Distribution 34,248
Administrative - Area 6 - Utilization/Economic Development 35,476
Administrative - Area 7 - System Operations and Analysis 14,329
Administrative - Area 8 - Information Systems 22,910
Incipient System Voltage Collapse Ananlysis 5,151
Electric & Magnetic Fields - Research Scoping Study 30,145
Electronic Voltage Diagnostic Unit Field Trial 19,040
DOE Developmental Fixed Bed Gasifier 13,462
Administrative - Area 9 - Alternate Energy 24,628
Dist. System Testing Applications, & Research Program 22,193
Optical Current Transformers 8,264
Demonstrate On-Line Carbon in Fly Ash Measurement System 7,723
Evaluation of MIS Transformer Gas Analyzer 15,500
Advanced ANNSTLF, Host Utility Testing, Support & Enhance 17,425
Techniques for Improving CEM Flow Measurement Accuracy 5,568
Electric Vehicle Infrastructure Development 5,444
Miscellaneous (37 projects under $5,000 each) 53,291
TOTAL 480,056
<PAGE>
<TABLE>
<CAPTION>
16
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XI - PROPRIETARY CAPITAL
NUMBER PAR OR STATED
OF SHARES VALUE OUTSTANDING CLOSE OF PERIOD
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
<S> <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>
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<TABLE>
<CAPTION>
17
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately for advances on notes, an
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 MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS 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>
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18
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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 20,973
The Potomac Edison Company 128 1,777
West Penn Power Company 4,218 6,065
Monongahela Power Company 81 5,902
TOTAL 4,427 34,717
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Employee benefits - pension plan 3,767,759 3,703,762
Capital leases 609,527 52,317
Restructuring Liability 0 13,435,000
TOTAL 4,377,286 17,191,079
<PAGE>
19
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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.
The System is undergoing a reorganization and
reengineering process (restructuring) to simplify its
management structure and to increase efficiency. As a
consequence of this process, approximately 200 employees,
primarily in the Bulk Power Supply department, have been
placed in a staffing force. In January 1996, these
employees were offered an option to resign immediately
under a Voluntary Separation Program (VSP) or to remain
employed subject to involuntary separation (layoff)
after one year, if during that year they have not found
other employment within the System.
In 1995, the company recorded restructuring charges
of $13.8 million, for the estimated liabilities
related primarily to staffing force employees'
involuntary separation costs. Further separation costs
for these employees will be recorded in 1996
depending upon those employees who elect early
separation under the VSP, which provides enhanced
separation benefits. Additional restructuring costs may
be required as the restructuring process is completed for
other departments.
<PAGE>
20
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
INCOME
457 Services rendered to associate companies 113,851,035 95,989,759
458 Services rendered to nonassociate
companies 0 0
421 Miscellaneous income or loss 6,823 7,375
Total Income 113,857,858 95,997,134
EXPENSE
920 Salaries and wages 51,318,480 46,657,218
921 Office supplies and expenses 4,819,360 4,486,827
922 Administrative expense transferred -
credit (359,873) (1,039,182)
923 Outside services employed 10,138,567 9,048,419
924 Property insurance 2,955 3,403
925 Injuries and damages 62,682 383,973
926 Employee pensions and benefits 21,486,539 10,183,919
928 Regulatory commission expense 359,873 1,039,182
930.1 General advertising expenses 0 0
930.2 Miscellaneous general expenses 145,048 39,095
931 Rents 20,754,098 20,292,397
932 Maintenance of structures and
equipment 1,212,801 1,171,257
403 Depreciation and amortization expense 273,823 155,146
408 Taxes other than income taxes 3,762,280 3,469,509
409 Income taxes (539,582) 680,173
410 Provision for deferred income taxes 598,467 857,044
411 Provision for deferred income taxes -
credit (230,526) (1,473,380)
411.5 Investment tax credit 0 0
426.1 Donations 1,385 315
426 Other deductions 10 2
427 Interest on long-term debt 0 0
431 Other interest expense 51,471 41,817
Total Expense 113,857,858 95,997,134
Net Income or (Loss) 0 0
<PAGE>
21
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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 31,512,109 1,439,524 0 32,951,633
The Potomac Edison Company 25,447,714 1,133,117 0 26,580,831
West Penn Power Company 50,801,690 2,284,345 0 53,086,035
Allegheny Power System, Inc. 361,886 9,300 0 371,186
Allegheny Generating Company 137,792 1,958 0 139,750
Allegheny Pittsburgh Coal Co. 8,749 490 0 9,239
AYP Capital 686,419 25,942 0 712,361
TOTAL 108,956,359 4,894,676 0 113,851,035
<PAGE>
<TABLE>
<CAPTION>
22
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation 23
For the Year Ended December 31, 1995
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
ASSOCIATE NONASSOCIATE TOTAL CHARGES
COMPANY CHARGES COMPANY CHARGES FOR SERVICE
DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL COST COST TOTAL
<S> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 50,579,063 739,417 51,318,480 50,579,063 739,417 51,318,480
921 OFFICE SUPPLIES AND EXPENSES 4,662,191 157,169 4,819,360 4,662,191 157,169 4,819,360
922 ADMINISTRATIVE EXPENSES
TRANSFERRED - CREDIT (359,873) 0 (359,873) (359,873) 0 (359,873)
923 OUTSIDE SERVICES EMPLOYED 7,866,664 2,271,903 10,138,567 7,866,664 2,271,903 10,138,567
924 PROPERTY INSURANCE 2,955 0 2,955 2,955 0 2,955
925 INJURIES AND DAMAGES 62,682 0 62,682 62,682 0 62,682
926 EMPLOYEE PENSIONS AND BENEFITS 20,828,592 657,947 21,486,539 20,828,592 657,947 21,486,539
928 REGULATORY COMMISSION EXPENSE 359,873 0 359,873 359,873 0 359,873
930.1 GENERAL ADVERTISING EXPENSES 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSES 138,068 6,980 145,048 138,068 6,980 145,048
931 RENTS 20,129,784 624,314 20,754,098 20,129,784 624,314 20,754,098
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENT 1,182,479 30,322 1,212,801 1,182,479 30,322 1,212,801
403 DEPRECIATION AND AMORTIZATION
EXPENSE 0 273,823 273,823 0 273,823 273,823
408 TAXES OTHER THAN INCOME TAXES 3,500,496 261,784 3,762,280 3,500,496 261,784 3,762,280
409 INCOME TAXES 0 (539,582) (539,582) 0 (539,582) (539,582)
410 PROVISION FOR DEFERRED INCOME
TAXES 0 598,467 598,467 0 598,467 598,467
411 PROVISION FOR DEFERRED INCOME
TAXES - CREDIT 0 (230,526) (230,526) 0 (230,526) (230,526)
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0
421 MISCELLANEOUS INCOME 0 (6,823) (6,823) 0 (6,823) (6,823)
426.1 DONATIONS 1,385 0 1,385 1,385 0 1,385
426 OTHER DEDUCTIONS 0 10 10 0 10 10
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 0 51,471 51,471 0 51,471 51,471
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 108,954,359 4,896,676 113,851,035 108,954,359 4,896,676 113,851,035
COMPENSATION FOR USE OF EQUITY CAPITAL
430 INTEREST ON DEBT TO
ASSOCIATE COMPANIES 0 0 0 0 0 0
TOTAL COST OF SERVICE108,954,359 4,896,676 113,851,035 108,954,359 4,896,676 113,851,035
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation 24
For the Year Ended December 31, 1995
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
FIELD: FIELD: FIELD: FIELD: FIELD: FIELD:
BPS BPS BPS BPS BPS
TOTAL BULK PROJECT ENGIN- CONSTRUC-
DESCRIPTION OF ITEMS AMOUNT OVERHEAD POWER ADMIN. COST PLANNING EERING TION
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 51,318,480 303,241 323,792 823,402 1,189,876 4,278,656 10,689,037 2,779,216
921 OFFICE SUPPLIES AND EXPENSES 4,819,360 95,953 49,691 7,111 46,988 334,657 756,534 458,350
922 ADMINISTRATIVE EXPENSES
TRANSFERRED - CREDIT (359,873) 0 0 0 0 0 (755) 0
923 OUTSIDE SERVICES EMPLOYED 10,138,567 2,232,267 71 448,530 394,968 289,984 418,212 46,848
924 PROPERTY INSURANCE 2,955 0 0 0 0 0 0 0
925 INJURIES AND DAMAGES 62,682 0 0 0 0 0 0 0
926 EMPLOYEE PENSIONS AND BENEFITS 21,486,539 14,040,314 24,459 100,332 227,004 605,998 1,559,212 465,966
928 REGULATORY COMMISSION EXPENSE 359,873 0 0 0 0 0 755 0
930.1 GENERAL ADVERTISING EXPENSE 0 0 0 0 0 0 0 0
930.2 MISCELLANEOUS GENERAL EXPENSE 145,048 4,718 0 0 0 3,022 17,328 32,500
931 RENTS 20,754,098 599,600 43,548 14,123 221,694 684,970 2,096,084 381,714
935 MAINTENANCE OF STRUCTURES AND 0
EQUIPMENT 1,212,801 9,672 235 0 3,152 4,967 20,367 4,713
403 DEPRECIATION AND AMORTIZATION
EXPENSE 273,823 273,823 0 0 0 0 0 0
408 TAXES OTHER THAN INCOME TAXES 3,762,280 236,093 12,558 50,262 85,667 303,377 766,160 200,240
409 INCOME TAXES (539,582) (539,582) 0 0 0 0 0 0
410 PROVISION FOR DEFERRED INCOME
TAXES 598,467 598,467 0 0 0 0 0 0
411 PROVISION FOR DEFERRED INCOME
TAXES - CREDIT (230,526) (230,526) 0 0 0 0 0 0
411.5 INVESTMENT TAX CREDIT 0 0 0 0 0 0 0 0
426.1 DONATIONS 1,385 0 0 0 0 0 0 0
426 OTHER DEDUCTIONS 10 10 0 0 0 0 0 0
427 INTEREST ON LONG-TERM DEBT 0 0 0 0 0 0 0 0
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES 0 0 0 0 0 0 0 0
431 OTHER INTEREST EXPENSE 51,471 51,471 0 0 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 113,857,858 17,675,521 454,354 1,443,760 2,169,349 6,505,631 16,322,934 4,369,547
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation 25
For the Year Ended December 31, 1995
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
FIELD: FIELD: CS: FIELD: FIELD: CS: HQ: HQ: HQ: HQ: HQ:
ADMIN., HR CS INFO SVC, LEG. EXECUTIVE EMPLOYEE &
PURCHASING, RATES RISK MGMT., AND LEGAL RATES CUSTOMER &
ACCOUNT BPS PROCEDURES, AND FIN MGMT, & ADMINI- AND AND PUBLIC
NUMBER OPERATING & SECURITY ACCOUNTING CORP DEV STRATION SECRETARY ACCOUNTING FINANCIAL RELATIONS
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 8,468,755 5,047,254 3,364,760 9,717,447 1,050,683 591,971 199,000 716,808 356,354
921 904,964 403,353 192,131 1,021,649 108,613 140,980 21,324 103,817 60,866
922 (23,519) 0 (277,871) (58,192) 0 0 464 0 0
923 482,830 271,806 289,166 5,025,027 51,038 2,407 0 27,235 30,668
924 0 0 0 2,955 0 0 0 0 0
925 0 0 3,518 59,164 0 0 0 0 0
926 1,273,242 738,770 479,134 1,404,526 78,585 48,199 34,575 97,969 56,447
928 23,519 0 277,871 58,192 0 0 (464) 0 0
930.1 0 0 0 0 0 0 0 0 0
930.2 2,720 5,490 250 5,145 3,875 0 0 0 70,000
931 6,386,670 866,512 506,898 8,431,722 87,095 203,189 38,104 114,312 76,291
935 11,637 6,826 4,388 1,130,524 591 14,812 0 619 299
403 0 0 0 0 0 0 0 0 0
408 0 357,109 239,769 694,555 39,843 23,198 7,705 29,962 18,102
409 604,466 0 0 0 0 0 0 0 0
410 0 0 0 0 0 0 0 0 0
411 0 0 0 0 0 0 0 0 0
411.5 0 0 0 0 0 0 0 0 0
426.1 0 250 0 0 0 135 0 1,000 0
426 0 0 0 0 0 0 0 0 0
427 0 0 0 0 0 0 0 0 0
430 0 0 0 0 0 0 0 0 0
431 0 0 0 0 0 0 0 0 0
18,135,284 7,697,370 5,080,014 27,492,714 1,420,323 1,024,891 300,708 1,091,722 669,027
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Allegheny Power Service Corporation 25A
For the Year Ended December 31, 1995
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
OU: ADMIN. OU: ADMIN. OU:
PRESIDENT, ASSISTANT ENGINEERING
ACCOUNT OPERATING TO THE OU: AND
NUMBER UNITS PRESIDENT MARKETING CONSTRUCTION
<S> <C> <C> <C> <C>
920 577,827 352,368 488,033
921 80,303 710 19,596 11,770
922 0 0 0 0
923 55,807 62,812 3,364 5,527
924 0 0 0 0
925 0 0 0 0
926 100,857 43,055 107,895
928 0 0 0 0
930.1 0 0 0 0
930.2 0 0 0 0
931 0 0 1,572 0
935
403 0 0
408 37,824 21,050 34,340
409 0 0 0 0
410 0 0 0 0
411 0 0 0 0
411.5 0 0 0 0
426.1 0 0 0 0
426 0 0 0 0
427 0 0 0 0
430 0 0 0 0
431 0 0 0 0
852,618 63,522 441,005 647,565
</TABLE>
<PAGE>
26
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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
Bulk Power Supply:
Administrative 824,888 824,888 5
Project Cost 1,207,081 1,207,081 28
Planning 4,300,295 4,300,295 79
Engineering 10,717,143 4,351 10,712,792 193
Construction 2,802,312 2,802,312 38
Operating 8,493,799 8,493,799 143
Central Services:
CS Administrative, Per-
sonnel, Purchasing,
Procedures, and Security 4,865,301 4,865,301 118
Rates and Accounting 3,375,204 29,030 3,346,174 61
Information Services,
Legal, Financial Management,
Financial Planning, Risk
Mamagement, Corporate
Development 9,766,048 26,404 9,739,644 185
Staffing Force 192,763 23 192,740 6
Headquarters:
Executive and Adminis-
trative 1,089,102 24,393 1,064,709 5
Legal and Secretarial 598,425 22,530 575,895 10
Bulk Power Supply 329,671 77 329,594 2
Rates and Accounting 201,798 1,103 200,695 1
Financial 725,256 12,505 712,751 6
Employee & Customer Rela-
tions and Public Infor-
mation 360,511 797 359,714 4
Field Operations:
Operating Units:
President, Operating Units 598,089 42 598,047 5
Marketing 362,499 362,499 11
Engineering & Construction 508,295 508,295 6
TOTAL 51,318,480 121,255 51,197,225 906
<PAGE>
27
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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 642,273
Canonsburg, PA 15317
ABB Systems Control Co. c/o First Chicago Bank NA 101,390
P.O. Box 73367
Chicago, IL 60673-7367
American Management P.O. Box 4725 NA 118,016
Systems Buffalo, NY 14240-4725
American Software, Inc. P.O. Box 101593 NA 37,637
Atlanta, GA 30392
BGS Systems Inc. P.O. Box 8500 (S-1480) NA 103,000
Philadelphia, PA
19178-1480
BMC Software, Inc. Nationsbank Texas NA 91,782
P.O. Box 840043
Dallas, TX 75284-0043
Candle Corp. P.O. Box 92278 NA 151,212
Chicago, IL 60675-2278
Cincom Systems, Inc. Department 405 NA 193,622
Cincinnati, OH 45296
<PAGE>
27A
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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)
Computer Associates P.O. Box 360355 NA 196,042
International, Inc. Pittsburgh, PA
15251-6355
Compuware Corporation Drawer #64376 NA 107,757
Detroit, MI 48264-0376
Digital Equipment P.O. Box 360566M NA 35,232
Corporation Pittsburgh, PA
15251-6566
Hitachi Data Systems P.O. Box 99257 NA 27,558
Chicago, IL 60693
International P.O. Box 91945 NA 1,243,667
Business Machines Chicago, IL 60695
INACOM-North Central P.O. Box 8500 (41835) NA 34,193
Reg. Philadelphia, PA 19178
Information Management STE 500 NA 129,610
26750 US Highway 19 N.
Clearwater, FL 34621
Information Technology 777 Penn Ctr. Blvd. NA 29,059
Solutions, Inc. Suite 600
Pittsburgh, PA
15235-5906
<PAGE>
27B
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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)
Integraph Corporation P.O. Box 13700 NA 94,513
Newark, NJ 07188-0700
KCS Computer Service, 777 Penn Center Blvd. NA 200,143
Inc. Suite 600
Pittsburgh, PA
15235-5906
Legent Corporation Department #1709 NA 61,488
Columbus, OH 43271-1709
M&I Data Services Inc. Bin 440 NA 29,250
Milwaukee, WI 53288-0440
Montare International 15303 Dallas Parkway NA 69,147
Suite 1060 LB 22
Dallas, TX 75248
Passage Systems Inc. 10596 N. Tantau Ave. NA 102,077
Cupertino, CA 95014
Platinum Technology Dept. 77-2604 NA 39,032
Chicago, IL 60678-2604
Protellicess STE 460 NA 28,766
429 Santa Monica Blvd.
Santa Monica, CA 90401
<PAGE>
27C
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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)
Schuchert & Associates 9665 S. Tayside Drive NA 71,955
South Jordan, UT 84095
Sterling Software, Inc. P.O. Box 73199 NA 116,911
Chicago, IL 60673
Stream International P.O. Box 3514 NA 55,976
Inc. Boston, MA 02241
Sybase Inc. P.O. Box 60000 NA 43,147
San Francisco, CA 94160
Texas Instruments, Inc. P.O. Box 198645 NA 124,659
Atlanta, GA 30384-8645
Thomson Software P.O. Box 120228 NA 25,478
International Stamford, CT 06912-0228
Trinzic Corp. P.O. Box 44198 NA 27,247
San Francisco, CA 94144
Usconnect Pittsburgh STE 625 NA 37,109
2100 Wharton Street
Pittsburgh, PA 15203
<PAGE>
27D
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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)
Utilities International 2860 River Road NA 69,908
Suite 375
Des Plaines, IL 60018
Miscellaneous - 105 vendors NA 526,538
4,965,394
Engineering Service:
Miscellaneous - 4 vendors NA 28,984
28,984
Legal Service:
Carter, Ledyard, & 2 Wall Street NA 95,720
Milburn New York, NY 10005
Dolgin & Associates Suite 800 NA 88,569
7800 Forsyth Blvd.
St. Louis, MO 63105
Miscellaneous - 2 vendors NA 9,105
193,394
Medical Service:
Miscellaneous - 1 vendor NA 320
<PAGE>
27E
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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:
Antech Limited One Triangle Drive NA 84,761
Export, PA 15632
Brissenden McFarland 721 Rt. 202-206 NA 48,693
Bridgewater, NJ 08807
Heidrick & Struggles P.O. Box 92227 NA 49,101
Inc. Chicago, IL 60675-4510
Levitan & Associates 99 Summer Street NA 35,706
Inc. STE 1720
Boston, MA 02110
ManPower Inc. Box 68-6003 NA 40,657
Milwaukee, WI 53267
Metzler & Associates 520 Lake Cook Road NA 506,749
Deerfield, IL 60015
New Harbor Inc. 12th Floor NA 161,104
885 Third Avenue
New York, NY 10022
Ohio Edison Co. 76 S. Main Street NA 31,979
Akron, OH 44308
<PAGE>
27F
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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
ADDRESS ASSOCIATE AMOUNT
Other Service: (continued)
Putnam Hayes & One Memorial Drive NA 33,481
Bartlett Cambridge, MA 02142
SE Technologies, Inc. 98 Vanadium Road NA 267,369
Bridgeville, PA 15017
Spectrum Technology 3421 US Highway 22 NA 32,333
Group Somerville, NJ 08876-9951
Towers Perrin P.O. Box 8500 (S-6110) NA 55,533
Philadelphia, PA 19178
Miscellaneous - 93 vendors NA 210,757
1,158,165
West Penn Power Company Charges:
Principally payroll, accounting,
billing control, personnel, and
general office services at cost
for the field operation depart-
ments. A 3,392,252
Total 10,138,567
<PAGE>
28
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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 2,414,976
Restructuring Charges 13,435,000
Postretirement benefits other than pensions 2,567,000
Corporate pension plan 587,179
Savings plan expense 1,269,967
Group life insurance 465,139
Employee education assistance 124,914
Group dental 209,309
Employee moving expense 299,694
Home sale plan payments 68,814
Miscellaneous (7) 44,547
TOTAL 21,486,539
<PAGE>
29
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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, 1995
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 134,080
Miscellaneous 10,968
TOTAL 145,048
<PAGE>
31
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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 7,855,950
Power control center equipment and space 3,666,649
Microwave and telecommunications equipment 2,510,665
Other office space 6,041,697
Other office furniture and equipment 455,744
Miscellaneous 223,393
TOTAL 20,754,098
<PAGE>
32
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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 151,545
New York City commercial rent or occupancy tax 42,748
New York City general occupation tax 7,268
Franchise tax 5,045
State gross premium 234
B & O Utility Op Inc 50,971
(2) U.S. Government Taxes:
FICA 3,449,631
Federal unemployment 53,044
Other than federal 1,794
TOTAL 3,762,280
<PAGE>
33
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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 (7) 1,385
TOTAL 1,385
<PAGE>
34
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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
Miscellaneous (1) 10
TOTAL 10
<PAGE>
35
ANNUAL REPORT OF Allegheny Power Service Corporation
For the Year Ended December 31, 1995
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.
See notes on page 19, Schedule XIV.
<PAGE>
36
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
PRESIDENT AND CHIEF OPERATING OFFICER
VICE PRESIDENT, GOVERNMENTAL AFFAIRS
DIRECTOR, STATE GOVERNMENTAL RELATIONS
SENIOR VICE PRESIDENT (BULK POWER)
VICE PRESIDENT, PLANNING AND COMPLIANCE BUSINESS UNIT
DIRECTOR, PLANNING AND COMPLIANCE
DIRECTOR, PLANNING AND COMPLIANCE
VICE PRESIDENT, TRANSMISSION BUSINESS UNIT
DIRECTOR, TRANSMISSION PROJECTS
DIRECTOR, TRANSMISSION PROJECTS
DIRECTOR, TRANSMISSION PROJECTS
DIRECTOR, TRANSMISSION MARKETING
DIRECTOR, OPERATIONS
VICE PRESIDENT, GENERATION BUSINESS UNIT
DIRECTOR, GENERATION PROJECTS
DIRECTOR, GENERATION PROJECTS
DIRECTOR, GENERATION PROJECTS
DIRECTOR, FUEL PROCUREMENT
DIRECTOR, OPERATIONS
DIRECTOR, GENERATION MARKETING
<PAGE>
36A
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF OPERATING OFFICER (CONTINUED)
VICE PRESIDENT (ACCOUNTING AND RATES)
ASSISTANT CONTROLLER (APSC) AND DIRECTOR, ACCOUNTING STUDIES
CONTROLLER
MANAGER, ACCOUNTING SERVICES
MANAGER, SYSTEM TAXES
DIRECTOR, RATES
MANAGER, RATE ANALYSIS
MANAGER, RATE STUDIES
DIRECTOR, SYSTEM INTERNAL AUDITS
MANAGER, EDP INTERNAL AUDITS
MANAGER, INTERNAL AUDITS (GREENSBURG)
MANAGER, INTERNAL AUDITS (FAIRMONT)
MANAGER, INTERNAL AUDITS (HAGERSTOWN)
VICE PRESIDENT (ADMINISTRATION)
EXECUTIVE DIRECTOR, CENTRAL SERVICES
COORDINATOR, ELECTRONIC COMMERCE
MANAGER, PROCEDURES AND EDP METHODS
MANAGER, PURCHASING
DIRECTOR, INFORMATION SERVICES
MANAGER, EDP OPERATIONS
MANAGER, EDP USER SUPPORT AND R&D
<PAGE>
36B
ANNUAL REPORT OF Allegheny Power Service Corporation
ORGANIZATION CHART
PRESIDENT AND CHIEF OPERATING OFFICER (CONTINUED)
VICE PRESIDENT (ADMINISTRATION) (CONTINUED)
EXECUTIVE DIRECTOR, CENTRAL SERVICES (CONTINUED)
DIRECTOR, INFORMATION SERVICES (CONTINUED)
MANAGER, TECHNICAL INFORMATION SERVICES AND NETWORK SUPPORT
MANAGER, APPLICATIONS DEVELOPMENT AND SUPPORT
DIRECTOR, HUMAN RESOURCES
HUMAN RESOURCES POLICY DIRECTOR (1)
MANAGER, HUMAN RESOURCES
MANAGER, HUMAN RESOURCES
DIRECTOR, SYSTEM SECURITY
DIRECTOR, PUBLIC INFORMATION
VICE PRESIDENT (LEGAL)
VICE PRESIDENT, LEGAL SERVICES
MANAGER, CLAIMS
DIRECTOR, LEGAL SERVICES
SECRETARY
<PAGE>
36C
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 (2)
VICE PRESIDENT AND TREASURER
MANAGER, CORPORATE DEVELOPMENT
ASSISTANT TREASURER
INVESTOR RELATIONS ADMINSTRATOR (2)
SENIOR VICE PRESIDENT (OPERATING UNITS)
VICE PRESIDENT, CORPORATE AFFAIRS
VICE PRESIDENT, CORPORATE AFFAIRS
VICE PRESIDENT, MARKETING
MANAGER, MAJOR ACCOUNTS
COORDINATOR, CUSTOMER RELATIONS
DIRECTOR, ENGINEERING AND CONSTRUCTION
NOTE: THIS ORGANIZATIONAL CHART REFLECTS ONLY SERVICE COMPANY POSITIONS.
IT DOES NOT INCLUDE OPERATING COMPANY POSITIONS WHICH ARE DIRECTED BY
THE SERVICE COMPANY.
(1) REPORTS TO VICE PRESIDENT ADMINISTRATION AND DIRECTOR, HUMAN RESOURCES.
(2) REPORTS TO SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER & VICE
PRESIDENT AND TREASURER.
<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: THOMAS J. KLOC
(Signature of Signing Officer)
Thomas J. Kloc, Controller
(Printed Name and Title of Signing Officer)
Date: April 29, 1996
<PAGE>
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