U-9C-3 1 u9c3112901.htm U-9C-3 FOR THE QUARTER ENDED SEPTEMBER 30, 2001 ITEM 1 - ORGANIZATION CHART

 

 

 

 

UNITED STATES

SECURITES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM U-9C-3

 

 

 

QUARTERLY REPORT PURSUANT TO RULE 58

 

 

For the quarter ended September 30, 2001

 

 

 

 

 

 

 

ALLEGHENY ENERGY, INC.

(Name of registered holding company)

 

 

 

10435 Downsville Pike, Hagerstown, Maryland 21740-1766

(Address of principal executive offices)

 

 

 

 

Inquiries concerning this Form U-9C-3 should be directed to:

Thomas J. Kloc
Allegheny Energy, Inc.
10435 Downsville Pike
Hagerstown, MD 21740 -1766
(301) 665-2711
 
 
 
 

 

 

ITEM 1 - ORGANIZATION CHART
           

Name
of Reporting
Company

Energy or
Gas-related
Company


Date of
Organization

State
Of
Organization

Percentage
of Voting
Securities Held
           

Allegheny Energy, Inc.

(1)

        

                 |

          

Allegheny Ventures, Inc.

(2)

        

                 |

          

Allegheny Energy
Solutions, Inc.


(3)


Energy


July 23, 1997


Delaware


100%

                 

          

Allegheny Energy, Inc.

(4)

        

                 |

          

Allegheny Energy Supply
Company, LLC


(5)

        

                 |

Mon Synfuel, LLC

(6)

Energy

May 15, 2000

Maryland

2.458%

                 

          

Allegheny Energy, Inc.

(7)

        

                 |

          

Allegheny Energy Supply
Company, LLC


(8)

        

                 |

Allegheny Energy Global
Markets, LLC


(9)


Energy


March 16, 2001


Delaware


100%

Nature of Business:

(1)  Allegheny Energy, Inc. holds directly all of the outstanding securities in Allegheny Ventures, Inc.

(2)  Allegheny Ventures, Inc. holds directly all of the outstanding securities in Allegheny Energy Solutions, Inc.

(3)  Allegheny Energy Solutions, Inc. currently develops competitive generation solutions (i.e. distributed
      generation, cogeneration, prime power, green power, and uninterrupted power source (UPS)) for customers
      through products such as reciprocating generators, microturbines, steam turbines, combustion turbines, fuel cells,
      wind turbines, and solar cells.

(4)  Allegheny Energy, Inc. owns 98.033% of Allegheny Supply Company, LLC, the remaining ownership of
      1.967% is owned by ML IBK Positions, Inc..

(5)  Allegheny Energy Supply Company, LLC holds a percentage membership in Mon Synfuel, LLC.

(6)  Mon Synfuel, LLC is developing the expansion of a coal fines recovery facility located at Monview Mine and
       the addition of a facility for the production of coal-based synthetic fuel from the coal fines.

(7)  Allegheny Energy, Inc. owns 98.033% of Allegheny Supply Company, LLC, the remaining ownership of
      1.967% is owned by ML IBK Positions, Inc..

(8)  Allegheny Energy Supply Company, LLC owns 100% of Allegheny Energy Global Markets, LLC.

(9)  Allegheny Energy Global Markets, LLC is an energy commodity marketing and trading business.

 

 

 

 

ITEM 2 - ISSUANCES AND RENEWALS OF SECURITIES AND CAPITAL CONTRIBUTIONS
     

Company
Contributing
Capital

Company
Receiving
Capital

Amount
Of Capital
Contribution
     

None

    
     

ITEM 3 - ASSOCIATE TRANSACTIONS
 

Part I - Transactions performed by reporting companies on behalf of associate companies
             

Reporting
Company
Rendering
Services

Associate
Company
Receiving
Services


Types of
Services
Rendered


Direct
Costs
Charged


Indirect
Costs
Charged


Cost
Of
Capital


Total
Amount
Billed
             

No services have been provided by the reporting company to associate companies to date.
             
             

Part II - Transactions performed by associate companies on behalf of reporting companies
             

Associate
Company
Rendering
Services

Reporting
Company
Receiving
Services


Types of
Services
Rendered


Direct
Costs
Charged


Indirect
Costs
Charged


Cost
Of
Capital


Total
Amount
Billed
             

Allegheny Energy
Service Corporation

Allegheny Energy
Solutions, Inc.

Technical
support; planning
& implementation
of financial
programs; counsel
on corporate,
legal and
regulatory
matters; general
and administrative
services.

$651,297

$104,119

  

$755,416

Allegheny Energy
Service Corporation

Allegheny Energy
Global Markets,
LLC

Technical
support; planning
& implementation
of financial
programs; counsel
on corporate,
legal and
regulatory
matters; general
and administrative
services and risk
management.

$637,745

$444,706

  

$1,082,451

 

 

ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT
       

(Thousands of Dollars)

      
       

Investments in energy-related companies:

      
       

Total consolidated capitalization as of September 30, 2001

$7,484,851

  

line 1
       

Total capitalization multiplied by 15%
(line 1 multiplied by 0.15)


$1,122,728

  


line 2
       

Greater of $50 million or line 2

  

$1,122,728

line 3
       

Total current aggregate investment:
(categorized by major line of energy-related business)

      

     Allegheny Energy Solutions, Inc.

$     21,170

    

     Mon Synfuel, LLC

$          250

    

     Allegheny Energy Global Markets, LLC

$   890,114

    
       

          Total current aggregate investment

  

$  911,534

line 4
       

Difference between the greater of $50 million or 15%
of capitalization and the total aggregate investment
of the registered holding company system
(line 3 less line 4)

  




$  211,194




line 5
       
       

Investments in gas-related companies:

      
       

None

      

ITEM 5 - OTHER INVESTMENTS
       

Major Line
of Energy-Related
Business

Other
Investment in Last
U-9C-3 Report

Other
Investment in This
U-9C-3 Report


Reason for Difference in
Other Investment
       

None

      

 

 

ITEM 6 - FINANCIAL STATEMENTS AND EXHIBITS

Allegheny Energy Solutions, Inc.:
 

Statement of Operations for the Three and Nine Months
     Ended September 30, 2001
 

Balance Sheet as of September 30, 2001
 

Allegheny Energy Global Markets, LLC:
 

Statement of Operations for the Three Months Ended September 30, 2001 and from Purchase Date (March 2001) through September 30, 2001
 

Balance Sheet as of September 30, 2001
 

Note: Allegheny Energy, Inc. (Allegheny Energy), Allegheny Energy Supply, LLC (Supply) and Allegheny Energy Global Markets (Global Markets) intend that (1) all trading activity effected by Supply directly or by Global Markets as agent for Supply from the closing of the acquisition ("Post-Closing Trades") be done for the account of Supply and recorded solely on the financial records of Supply (and not Global Markets), (2) the closing acquired trades be acquired for the account of Supply and be recorded solely on the financial records of Supply (and not Global Markets) and (3) the novated trades be purchased by Supply from Global Markets on the date of novation for the net fair market value (positive or negative) of such trades as of such date. Certain accounting entries do not conform to the parties intentions. In order that the accounting entries conform to the above during the fourth quarter of 2001, Allegheny Energy will revise the stand-alone financial statements of Global Markets and Supply. Allegheny Energy is in the process of determining the adjustments to be recorded. The adjustments will not alter the consolidated financial results of Supply. Upon completion of the accounting entries Allegheny Energy will immediately file the amended Balance Sheet and Statement of Operations for Global Markets.

Signature

 

     Pursuant to the requirements of the Public Utilities Holding Company Act of 1935, Allegheny Energy, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ALLEGHENY ENERGY, INC.

 

/s/     THOMAS J. KLOC
 

Thomas J. Kloc

Vice President and Controller

(Chief Accounting Officer)

November 29, 2001

Allegheny Energy Solutions, Inc.

STATEMENT OF OPERATIONS

(Thousands of Dollars)

    
 

Unaudited

Unaudited

Three months ended
September 30, 2001

Nine months ended
September 30, 2001
     

Operating revenues

                $   6,494

                $  30,978
     

Operating Expenses:

    

  Cost of goods sold

                     6,385

                    22,969

  General and administrative expenses

                        239

                    10,550

  Maintenance

                           8

                           30

  Taxes other than income taxes

                          19

                         123

  Federal and state income taxes

                        (60)

                     (1,017)

  Total operating expenses

                     6,591

                    32,655

         Operating Income (Loss)

                        (97)

                    (1,677)
     

Other Income and Deductions:

    

  Other income, net

                       (178)

                         322
     
     

Net Income (Loss)

              $       (275)

              $     (1,355)
     

Allegheny Energy Solutions, Inc.

BALANCE SHEET
   
 

Unaudited

September 30, 2001

(Thousands of Dollars)

  
   
   

ASSETS

  

  Property, plant and equipment

          $        353

  Accumulated Depreciation

                    (32)
 

                    321

  Investments in other assets:

  

    Unregulated investments

                 1,860
   
   

 Current Assets:

  

    Cash

                 2,781

    Accounts Receivable:

  

      Utility service

                 1,720

      Other

                 2,094

      Allowance for uncollectible accounts

                (2,094)

    Materials and supplies -at average cost:

  

       Operating and construction

                      30

    Prepaid taxes

                 1,098

    Other current assets

                    918
 

                 6,547
   

    Deferred charges

                      14
   

         Total Assets

         $      8,742
   

CAPITALIZATION AND LIABILITIES

  

    Common stock

         $            1

    Other paid-in capital

                 9,169

    Retained Earnings

               (6,391)
 

                 2,779
   

Current Liabilities:

  

  Short-term debt

                 2,000

  Accounts Payable

                    125

  Accounts Payable, to affiliates, net

                    510

  Other accrued taxes

                      44

  Other

                 2,897
 

                 5,576
   

Deferred Credits and Other Liabilities:

  

   Deferred Income Taxes

                   381

    Other

                       6
 

                   387
   

Total Capitalization and Liabilities

         $     8,742
   

Allegheny Energy Global Markets, LLC

 

 

STATEMENT OF OPERATIONS

BALANCE SHEET

Note: Allegheny Energy, Inc. (Allegheny Energy), Allegheny Energy Supply, LLC (Supply) and Allegheny Energy Global Markets (Global Markets) intend that (1) all trading activity effected by Supply directly or by Global Markets as agent for Supply from the closing of the acquisition ("Post-Closing Trades") be done for the account of Supply and recorded solely on the financial records of Supply (and not Global Markets), (2) the closing acquired trades be acquired for the account of Supply and be recorded solely on the financial records of Supply (and not Global Markets) and (3) the novated trades be purchased by Supply from Global Markets on the date of novation for the net fair market value (positive or negative) of such trades as of such date. Certain accounting entries do not conform to the parties intentions. In order that the accounting entries conform to the above during the fourth quarter of 2001, Allegheny Energy will revise the stand-alone financial statements of Global Markets and Supply. Allegheny Energy is in the process of determining the adjustments to be recorded. The adjustments will not alter the consolidated financial results of Supply. Upon completion of the accounting entries Allegheny Energy will immediately file the amended Balance Sheet and Statement of Operations for Global Markets.