U-9C-3 1 u9c3.htm U-9C-3

 

 

 

 

UNITED STATES
SECURITES AND EXCHANGE COMMISSION
Washington, D.C. 20549




FORM U-9C-3




QUARTERLY REPORT PURSUANT TO RULE 58



For the periods ending September 30, 2002, and December 31, 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:

Bruce E. Walenczyk
Allegheny Energy, Inc.
10435 Downsville Pike
Hagerstown, MD 21740 -1766
(301) 665-2775

 
 
 
 

 

 

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%

     |

         

     |  1Fellon-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%

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.2

(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.



_________________________________________
1 Fellon McCOrd was sold during the 1st quarter of 2003.

2 Id.

 

 

 (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. The investment in Mon Synfuel, LLC was written off by Allegheny Energy Supply Company, LLC., in September 2002.

(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. The project is scheduled to be cancelled in the 4th quarter of 2002 or 1st quarter of 2003.

 

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.

 

 

$ [not available]

$ [not available]

$ [not available]

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.

$ [not available]

$ [not available]

$ [not available]

             

ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT

       

(Thousands of Dollars)

     
       

Investments in energy-related companies:

     
       

Total consolidated capitalization as of December 31, 2002

$ [not available]

 

line 1

       

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


$ [not available]

 


line 2

       

Greater of $50 million or line 2

 

$ [not available]

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)

 

$ [not available]

   

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

 

$ [not available

   
       
       

          Total current aggregate investment

 

$ [not available]

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)

 




[not available]




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:

(A) Current Period Financial Statements:

 

As previously announced, Allegheny Energy, Inc.'s financial statements for the fiscal year ended December 31, 2002 are not yet available. Allegheny is undertaking a comprehensive review of its financial statements in conjunction with the audit of 2002 financial results. Allegheny commits to file the financial information required by this report as soon as practicable after the filing of its Annual Report on Form 10-K for the year ended December 31, 2002.

 
 
 
 
 

 

 

 

 

 

 

ALLEGHENY ENERGY SOLUTIONS, INC.

Statement of Operations

Unaudited

Unaudited

Three Months Ended

Twelve Months Ended

December 31

December 31

(In thousands)

2002

2002

Operating revenues 

    $      

           

Cost of revenues

           

           

   Net revenues

           

           

Other operating expenses:

Operation expense

           

           

Workforce reduction costs

           

           

Depreciation and amortization

           

                    41

 Taxes other than income taxes

           

           

    Total other operating expenses

           

           

    Operating income

           

       

Other income and expenses

         

           

Interest charges

             

           

Loss before income taxes

         

            

Federal and state income tax expense (benefit)

           

           

Net loss

    $      

    $      

 

ALLEGHENY ENERGY SOLUTIONS, INC.

Balance Sheet

(Financial Data to be supplied)

Unaudited

September 30,

(In Thousands)

2002

ASSETS:

  Current Assets:

    Cash and temporary cash investments

     $      

    Accounts receivable

            

    Allowance for uncollectible accounts

            

    Deferred income tax

            

    Taxes receivable

            

    Other

            

            

  Property, plant, and equipment:

    At original cost

                    

    Accumulated depreciation

            

            

   Deferred charges:

   Deferred income taxes

         

Total assets

     $      

STOCKHOLDERS' EQUITY AND LIABILITIES:

  Current Liabilities:

    Accounts payable

     $      

    Accounts payable affiliates, net

            

    Other accrued taxes

          

    Other

            

            

Deferred credits:

          

    Deferred income taxes

          

    Other

            

              

   Stockholders' equity:

   Common stock

            

   Other paid in capital

           

   Retained earnings

            

   

            

Total stockholders' equity and liabilities

     $      

 

 

ALLEGHENY ENERGY SOLUTIONS, INC.

Balance Sheet

(Financial Data to be supplied)

Unaudited

December 31, 2002

(In Thousands)

ASSETS:

  Current Assets:

    Cash and temporary cash investments

     $      

    Accounts receivable

            

    Allowance for uncollectible accounts

            

    Deferred income tax

            

    Taxes receivable

            

    Other

            

            

  Property, plant, and equipment:

    At original cost

                    

    Accumulated depreciation

            

            

   Deferred charges:

   Deferred income taxes

         

Total assets

     $      

STOCKHOLDERS' EQUITY AND LIABILITIES:

  Current Liabilities:

    Accounts payable

     $      

    Accounts payable affiliates, net

            

    Other accrued taxes

          

    Other

            

            

Deferred credits:

          

    Deferred income taxes

          

    Other

            

              

   Stockholders' equity:

   Common stock

            

   Other paid in capital

           

   Retained earnings

            

   

            

Total stockholders' equity and liabilities

     $      

 

 

ALLEGHENY VENTURES, INC.

Consolidated Statement of Operations

Unaudited

Unaudited

Three Months Ended

Nine Months Ended

December 31

December 31,

(In thousands)

2002

2002

Operating revenues

       $       

      $      

Cost of revenues:

  Natural gas purchases

              

             

  Other

              

             

    Cost of revenues

              

             

    Net revenues

              

             

Other operating expenses:

  Operation expense

              

             

Workforce reduction costs

              

     

  Depreciation and amortization

              

             

  Taxes other than income taxes

              

             

    Total other operating expenses

              

             

    Operating income

              

           

Other income and expenses

               

             

Interest charges

              

             

Consolidated loss before income taxes and minority interest

              

              

Federal and state income tax benefits

              

              

Minority interest

              

             

Consolidated net loss

      $       

     $       

 

 

ALLEGHENY VENTURES, INC.

Consolidated Balance Sheet

 

December 31

In thousands)

2002

ASSETS:

Current Assets:

    Cash and temporary cash investments

     $       

    Accounts receivable:

    Electric service

             

      Other

             

        Allowance for uncollectible accounts

              

    Materials and supplies at average cost:

        

      Operating and maintenance

             

      Fuel

             

    Deferred income taxes

            

   Natural gas retail contracts

             

   Income taxes receivable

             

    Prepaid taxes

             

    Other

             

             

Property, plant, and equipment:

        At original cost

             

        Accumulated depreciation

             

             

Investments and Other Assets:

    Excess of cost over net assets acquired

             

    Nonutility investments

             

    Intangible assets

             

             

Deferred Charges:

    Natural gas retail contracts

             

    Deferred income taxes

           

    Other

             

             

Total assets

    $        

 

 

ALLEGHENY VENTURES, INC.

Consolidated Balance Sheet

 

September 30,

In thousands)

2002

ASSETS:

Current Assets:

    Cash and temporary cash investments

     $       

    Accounts receivable:

    Electric service

             

      Other

             

        Allowance for uncollectible accounts

              

    Materials and supplies at average cost:

        

      Operating and maintenance

             

      Fuel

             

    Deferred income taxes

            

   Natural gas retail contracts

             

   Income taxes receivable

             

    Prepaid taxes

             

    Other

             

             

Property, plant, and equipment:

        At original cost

             

        Accumulated depreciation

             

             

Investments and Other Assets:

    Excess of cost over net assets acquired

             

    Nonutility investments

             

    Intangible assets

             

             

Deferred Charges:

    Natural gas retail contracts

             

    Deferred income taxes

           

    Other

             

             

Total assets

    $        

 

 

ALLEGHENY VENTURES, INC.

Consolidated Balance Sheet (Cont'd)

September 30,

(In thousands)

2002

STOCKHOLDERS' EQUITY AND LIABILITIES:

  Current liabilities:

    Accounts payable

      $       

    Accounts payable affiliates, net

              

    Notes payable, affiliates

              

    Deferred income taxes

              

    Taxes accrued:

      Federal and state taxes

             

      Other

               

    Natural gas retail contracts

              

    Interest accrued

              

              

    Other

              

              

  Long-term debt

              

  Deferred credits:

    Natural gas retail contracts

              

    Deferred income taxes

              

    Other

              

        

              

    Minority interest

              

Stockholders' equity:

   Common stock

          

   Other paid in capital

              

   Retained earnings

               

   Other comprehensive income

              

   

              

Total capitalization and liabilities

      $       

 

 

ALLEGHENY VENTURES, INC.

Consolidated Balance Sheet (Cont'd)

December 31,

(In thousands)

2002

STOCKHOLDERS' EQUITY AND LIABILITIES:

  Current liabilities:

    Accounts payable

      $       

    Accounts payable affiliates, net

              

    Notes payable, affiliates

              

    Deferred income taxes

              

    Taxes accrued:

      Federal and state taxes

             

      Other

               

    Natural gas retail contracts

              

    Interest accrued

              

              

    Other

              

              

  Long-term debt

              

  Deferred credits:

    Natural gas retail contracts

              

    Deferred income taxes

              

    Other

              

        

              

    Minority interest

              

Stockholders' equity:

   Common stock

          

   Other paid in capital

              

   Retained earnings

               

   Other comprehensive income

              

   

              

Total capitalization and liabilities

      $       

 

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/ BRUCE E. WALENCZYK

 

Bruce E. Walenczyk

Senior Vice President and Chief Financial Officer

March 31, 2003