U-9C-3 1 u9c3.htm ALLEGHENY ENERGY, INC - 06/30/02 QUARTER 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 June 30, 2002

 

 

 

 

 

 

 

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:

Ronald K. Clark
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%

    

         

      -Fellon-McCord Associates, Inc.
      -Alliance Energy Services Partnership 
      -Alliance Gas Services Holdings, LLC

(4)

Energy

November 1, 2001

Kentucky

100%

see (4) below

60%

           

  -Allegheny Energy Supply
     Company, LLC


(5)

       

      

         

          -Mon Synfuel, LLC

(6)

Energy

May 15, 2000

Maryland

2.458%

      

         

         -Buchanan Energy of VA, LLC
                     "NEW"

(7)

Energy

March 26, 2002

Virginia

100%

       

        -Allegheny Energy Supply
           Development Services, LLC

                |

-NYC Energy, LLC "NEW"

(8)

Energy

June 2002

New York

50%

 

ITEM 1 - ORGANIZATION CHART (continued)

Nature of Business:

(1)   Allegheny Energy, Inc. holds directly all of the outstanding securities in Allegheny Ventures, Inc. and holds directly 98.033% of the
       outstanding voting securities in Allegheny Energy Supply Company, LLC.

(2)   Allegheny Ventures, Inc. holds directly all of the outstanding securities in Allegheny Energy Solutions, Inc., and Allegheny Ventures, Inc
.       holds directly all of the outstanding securities in Fellon-McCord Associates, 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)   Fellon-McCord Associates, Inc. provides energy consulting and management services. Alliance Gas Services  Holdings, LLC and Alliance
         Energy Services Partnership provide natural gas and other energy-related services  to large commercial and industrial end-use customers.

            Alliance Gas Services Holdings, LLC, is owned 40% by Energy Corporation of America and 60% by Allegheny Ventures, Inc. Allegheny
              Energy Services Partnership is owned 50% by Allegheny Ventures, Inc. and the  remaining 50% ownership is held by Alliance Gas
              Services Holding, LLC.

  (5)   Allegheny Energy Supply Company, LLC holds a percentage membership in Mon Synfuel, LLC and holds a 100% ownership in
         Buchanan Energy Company of Virginia, LLC. Allegheny Energy Supply Company, LLC also holds a 100% interest in Allegheny Supply
         Development Services, 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)    Buchanan Energy Company of Virginia, LLC is a 50% owner of Buchanan Generation, LLC. The generating
         facility is a merchant power plant from which the  capacity, energy and ancillary services are sold to wholesale  markets.

(8)    NYC Energy, LLC is developing a 79-MW barge-mounted, natural gas-fired combustion turbine generating facility that will be located in
         the Brooklyn Navy Yard. Allegheny Energy Supply Development Services, LLC, under contractual agreement, has acquired a
         50 % interest in NYC Energy, LLC.

 

 

 

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 an associate company 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.

$486,874

$(69,431)

 

$417,443

Allegheny Energy
Service Corporation

Allegheny Ventures, Inc.

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

$658,743

$(84,473)

$574,270

             

 

 

ITEM 4 SUMMARY OF AGGREGATE INVESTMENT

       

(Thousands of Dollars)

     
       

Investments in energy-related companies:

     
       

Total consolidated capitalization as of June 30, 2002

$7,633,339

 

line 1

       

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


$1,145,001

 


line 2

       

Greater of $50 million or line 2

 

$1,145,001

line 3

       

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

     

     Allegheny Ventures, Inc. : (including Allegheny Energy
           Solutions, Fellon-McCord, Alliance Energy, and Alliance
           Gas Services Holdings)



$    124,446

   

    Allegheny Energy Supply Company LLC: (including,
           MonSyn Fuel , NYC Energy, LLC and Buchanan Energy
           of VA LLC)*



$    52,563

   
       
       

          Total current aggregate investment

 

$    177,009

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)

 




$  967,992




line 5

       

 *Note: Previous filings separated MonSyn Fuel ($250 thousand) with a subtotal for all other Rule 58 investments on a separate               line.

       

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

(A) Revised Financial Statements:

Note: In the previous U9C3 filed for the three month period ended March 31, 2002, the Statements of Operations and Balance Sheets for Allegheny Energy Solutions, Inc. (AE Solutions) included the activity for Fellon McCord and Associates, Inc. (Fellon-McCord), Alliance Energy Solutions, Inc. (Alliance Energy), Alliance Gas Services, Inc. (Alliance Gas) and Alliance Gas Services Holdings, LLC (Alliance Gas Services) in calculating the consolidation of AE Solutions. The Statement of Operations and the Balance Sheet for AE Solutions should have been presented on a stand-alone basis. The previously referenced entities were properly included in the consolidated presentation of Allegheny Ventures, Inc . (Allegheny Ventures). Accordingly, revised Statements of Operations and Balance Sheets for AE Solutions for the three month period ended March 31, 2002 have been provided. The Statement of Operations and Balance Sheet for Allegheny Ventures do not require any revisions for the three month period ended March 31, 2002.

           Revised Allegheny Energy Solutions, Inc. Statement of Operations for the Three
                             Months Ended March 31, 2002

           Revised Allegheny Energy Solutions, Inc. Balance Sheet at March 31, 2002

(B) Current Period Financial Statements:

 

            Allegheny Energy Solutions, Inc. Statement of Operations for the Three and Six
                 Months Ended June 30, 2002

 

           Allegheny Energy Solutions, Inc. Balance Sheet at June 30, 2002

 

           Allegheny Ventures, Inc. Statement of Operations for the Three and Six
                 Months Ended June 30, 2002

 

           Allegheny Ventures, Inc. Balance Sheet at June 30, 2002

 

 

 

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/     RONALD K. CLARK

 
 

Ronald K. Clark

Vice President and Controller

(Chief Accounting Officer)

August 29, 2002

 

Allegheny Energy Solutions

Statement of Operations

Unaudited

Revised

Three Months

Three Months

Ended

Adjustment (1)

Ended

(Thousand of dollars)

March 31,

Debit /

March 31,

2002

(Credit)

2002

Operating revenues:

         $149,485

        $ 122,240

               $27,245

Cost of revenues:

  Natural gas purchases

           118,569

          (118,569)

  Other

             25,205

                        

                 25,205

    Cost of revenues

           143,774

          (118,569)

                 25,205

    Net revenues

               5,711

               3,671 

                   2,040

Other operating expenses:

  Operation expense

               4,056

              (1,993)

                  2,063

  Depreciation and amortization

                  860

                 (850)

                       10

  Taxes other than income taxes

                  155

                 (106)

                       49

    Total other operating expenses

               5,071

              (2,949)

                  2,122

    Operating income

                  640

                  722

                     (82)

Other income and expenses

                1,051

                  674 

                     377

Interest charges

                     (5)

                         

                       (5)

Consolidated income before income taxes and minority interest

                1,696

                1,396

                     300

Federal and state income taxes

                   387

                 (268)

                     119

 Minority interest

                   121

                 (121

                           

Consolidated net income

          $    1,188

           $  1,007

            $       181

Note (1)   The adjustment reflects the removal of entities previously reported in the consolidation of Allegheny Energy Solutions, Inc.. See details provided in Item 6 above.

 

 

Allegheny Energy Solutions

Balance Sheet

Unaudited

(Thousands of dollars)

Adjustment (1)

Revised

March 31, 2002

Debit / (Credit)

March 31, 2002

ASSETS:

   Property, Plant, and Equipment:

        At original cost

            $    2,048

      $      (1,000)

            $   1,048

        Accumulated depreciation

                   (587)

                  535

                    (52)

                  1,461

               ( 465)

                   996

   Investments and Other Assets:

        Excess of cost over net assets acquired

                29,520

            (29,520)

                         

        Nonutility investments

                  6,904

                6,904

        Intangible assets

                23,025

            (23,025)

                         

                59,449

           (52,545)

                6,904

    Current Assets:

        Cash and temporary cash investments

               18,513

           (18,471)

                     42

        Accounts receivable:

            Electric Service

                 7,885

                7,885

            Other

               52,865

           (45,827)

                7,038

            Allowance for uncollectible accounts

                (2,895)

                 607

               (2,288)

        Accounts receivable affiliate, net

                 1,885

                   36

                1,921

        Materials and supplies - at average cost

            Operating and construction

                  639

              (612)

                    27

        Natural gas retail contracts

              17,891

          (17,891)

                       

        Other

                   965

                   29

                  994

             97,748

          (82,129)

             15,619

   Deferred Charges:

        Natural gas retail contracts

               3,586

            (3,586)

                      

        Deferred income taxes

               6,552

               6,552

        Other

                      2

                      

                      2

             10,140

            (3,586)

               6,554

   Total Assets

         $168,798

      $(138,725)

           $30,073

Note (1) The adjustment reflects the removal of entities previously reported in the consolidation of Allegheny Energy Solutions, Inc.. See details provided in Item 6 above.

 

Allegheny Energy Solutions

Balance Sheet (Cont'd)

(Thousands of dollars)

Unaudited

Adjustment (1)

Revised

March 31, 2002

Debit / (Credit)

March 31, 2002

CAPITALIZATION & LIABILITIES:

   Capitalization:

        Common stock

             $           1

           $           1

        Other paid in capital

                 44,496

          $ 28,881

               15,615

        Retained earnings

                 (2,170)

               1,007

               (3,177)

        Other comprehensive income

                     314

                  314

                         

   Total Capitalization

                42,641

             30,202

              12,439

   Current Liabilities:

        Accounts payable

               72,760

            61,978

             10,782

        Taxes accrued:

            Federal and state taxes

                 7,204

                 362

               6,842

            Other

                    645

                 640

                      5

        Natural gas retail contracts

               34,394

            34,394

               

        Other

                      26

                   26

                        

             115,029

            97,400 

             17,629

    Minority interest

                 3,174

              3,174 

                        

    Deferred credits:

        Natural gas retail contracts

                 7,879

              7,879

                   

        Other

                      75

                   70 

                      5

        

                 7,954

              7,949 

                      5

 Total Capitalization and Liabilities

           $168,798

        $138,725 

           $30,073

Note (1) The adjustment reflects the removal of entities previously reported in the consolidation of Allegheny Energy Solutions, Inc.. See details provided in Item 6 above.

 

 

Allegheny Energy Solutions

Statement of Operations

Unaudited

Three Months Ended

Six Months Ended

(Thousand of dollars)

June 30,

June 30,

2002

2002

Operating revenues 

            $10,272

             $37,517

Cost of revenues

                9,469

              34,674

   Net revenues

                   803

                2,843

Other operating expenses:

  Operation expense

                   943

               3,006

  Depreciation and amortization

                     31

                    41

  Taxes other than income taxes

                     62

                  111

    Total other operating expenses

                1,036

               3,158

    Operating income

                  (233)

                (315)

Other income and expenses

               (1,741)

             (1,364)

Interest charges

                         

                   (5)

Loss before income taxes

               (1,974)

             (1,674)

Federal and state income tax benefits

                  (795)

                (676)

Net loss

           $  (1,179)

          $    (998)

 

 

Allegheny Energy Solutions

Balance Sheet

(Thousands of dollars)

Unaudited

June 30, 2002

ASSETS:

   Property, Plant, and Equipment:

        At original cost

             $  1,138

        Accumulated depreciation

                    (82)

                 1,056

   Investments and Other Assets:

        Nonutility investments

                 5,133

    Current Assets:

        Cash and temporary cash investments

               10,481

        Accounts receivable

               16,862

        Allowance for uncollectible accounts

                (2,277)

        Taxes receivable

                 3,146

         Other

                      88

               28,300

   Deferred Charges:

        Deferred income taxes

                 3,375

        Other

                        2

                 3,377

   Total Assets

             $37,866

CAPITALIZATION & LIABILITIES:

   Capitalization:

        Common stock

             $           1

        Other paid in capital

                 27,642

        Retained earnings

                 (5,953)

   Total Capitalization

                21,690

   Current Liabilities:

        Accounts payable

                 4,589

        Accounts payable affiliates, net

                    601

        Deferred income taxes

                      52

        Other accrued taxes

                      27

        Other

               10,902

               16,171

    Deferred credits

                       5

        

 Total Capitalization and Liabilities

           $  37,866

 

Allegheny Ventures, Inc.

Consolidated Statement of Operations

Unaudited

Three Months Ended

Six Months Ended

(Thousand of dollars)

June 30,

June 30,

2002

2002

Operating revenues

         $132,741

           $284,064

Cost of revenues:

  Natural gas purchases

           111,017

            229,586

  Other

             13,339

              39,488

    Cost of revenues

           124,356

            269,074

    Net revenues

               8,385

              14,990

Other operating expenses:

  Operation expense

               5,552

              10,810

  Depreciation and amortization

                  385

                1,245

  Taxes other than income taxes

                  404

                   634

    Total other operating expenses

               6,341

              12,689

    Operating income

               2,044

                2,301

Other income and expenses

             (9,111)

           (10,876)

Interest charges

                 200

                  195

Consolidated loss before income taxes and minority interest

             (7,267)

              (8,770)

Federal and state income tax benefits

             (2,825)

              (3,766)

Minority interest

                   75

                  196

Consolidated net loss

       $    (4,517)

       $    (5,200)

 

 

 

Allegheny Ventures, Inc.

Consolidated Balance Sheet

(Thousands of dollars)

Unaudited

June 30, 2002

ASSETS:

   Property, Plant, and Equipment:

        At original cost

              $ 46,277

        Accumulated depreciation

                 (3,314)

                42,963

   Investments and Other Assets:

        Excess of cost over net assets acquired

                30,697

        Nonutility investments

                40,174

       Intangible assets

                16,531

                87,402

   Current Assets:

        Cash and temporary cash investments

                22,625

        Accounts receivable:

            Electric service

                18,565

            Other

                51,118

            Allowance for uncollectible accounts

                (2,974)

        Materials and supplies at average cost

                 5,475

        Natural gas retail contracts

               11,826

        Income taxes receivable

                 4,766

        Prepaid taxes

                      54

        Other

                    380

             111,835

   Deferred Charges:

        Natural gas retail contracts

                 2,779

        Deferred income taxes

                 7,422

        Other

                    530

               10,731

Total Assets

           $252,931

 

 

 

Allegheny Ventures, Inc.

Consolidated Balance Sheet (Cont'd)

(Thousands of dollars)

Unaudited

June 30, 2002

CAPITALIZATION & LIABILITIES:

Capitalization:

        Common stock

               $           1

        Other paid in capital

                 180,058

        Retained earnings

                  (41,431)

        Other comprehensive income

                       (445)

   

                 138,183

   Long-term debt

                   10,500

                 148,683

   Current Liabilities:

        Accounts payable

                   53,913

        Accounts payable affiliates, net

                     2,347

        Deferred income taxes

                         29

        Taxes accrued:

          Federal and state taxes

                    3,996

          Other

                       178

        Natural gas retail contracts

                  26,279

        Interest accrued

                         53

        Other

                   10,966

                  97,761

    Minority interest

                    2,954

    Deferred credits

        Natural gas retail contracts

                   3,400

        Other

                      133

        

                   3,533

 Total Capitalization and Liabilities

             $252,931