U-9C-3 1 u9c3.htm

 

 

 

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, 2005

 

 

 

 

ALLEGHENY ENERGY, INC.

(Name of registered holding company)

 

 

800 Cabin Hill Drive, Greensburg, PA 15601

(Address of principal executive offices)

 

 

 

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

Thomas R. Gardner
Allegheny Energy, Inc.
800 Cabin Hill Drive
Greensburg PA 15601

 

 

 

 

 

 



 

 

 

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 Supply
  Company, LLC

 

(4)

 

 

 

 

     

 

 

 

 

 

Buchanan Energy Company of Virginia, LLC

 

(5)

Energy

March 14, 2002

Virginia

100%

     

 

 

 

 

 

Allegheny Energy Supply

Development Services, LLC

 

(6)

 

Energy

 

October 11, 2001

 

Delaware

 

100%

 

 

 

 

 

 

Nature of Business:

 

 

 

 

 

 

 

 

 

 

 

(1)   Allegheny Energy, Inc. holds directly all of the outstanding securities in Allegheny Ventures, Inc. and holds directly approximately 98.60% 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.

 

(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 Supply Company, LLC holds 100% ownership in Buchanan Energy Company of Virginia, LLC and Allegheny Energy Supply Development Services, LLC.

 

(5)   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.

(6)  Allegheny Energy Supply Development Services, LLC was formed to develop electric generation facilities. No facilities are currently in development.

 

 

 



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 companies 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

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

Allegheny Energy
Service Corporation

Allegheny Energy
Solutions, Inc.

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

$56

$102

$--

$158

Allegheny Energy
Service Corporation

Allegheny Ventures, Inc.

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

$13

$379

$--

$392

 

 

 



 

 

 

Allegheny Energy
Service Corporation

Allegheny Energy Supply Company, LLC

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

$7,190

$24,479

$--

$31,669

 

 

 

 

 

 

 

 

ITEM 4 – SUMMARY OF AGGREGATE INVESTMENT

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

Investments in energy-related companies:

 

 

 

 

 

 

 

Total consolidated capitalization as of September 30, 2005

$5,990,303

 

line 1

 

 

 

 

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


$898,545

 


   line 2

 

 

 

 

Greater of $50.0 million or line 2

 

$898,545

line 3

 

 

 

 

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

 

 

 

 

 

 

 

Allegheny Ventures, Inc.: (including Allegheny Energy       Solutions, Inc.)

$11,512

 

 

Allegheny Energy Supply Company, LLC: (including,

Buchanan Energy Company of Virginia, LLC and       Allegheny Energy Supply Development Services, LLC)

 

 

$29,698

 

 

 

 

 

 

Total current aggregate investment

 

$41,210

line 4

 

 

 

 

Difference between the greater of $50.0 million or 15%
of capitalization and the total aggregate investment
of the registered holding company system
(line 3 less line 4)

 




$857,335




   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:

 

Allegheny Energy Solutions, Inc. Statement of Operations for the Three and Nine

Months Ended September 30, 2005

 

Allegheny Energy Solutions, Inc. Balance Sheet at September 30, 2005

 

Allegheny Ventures, Inc. Consolidated Statements of Operations for the Three and Nine

Months Ended September 30, 2005

 

Allegheny Ventures, Inc. Consolidated Balance Sheet at September 30, 2005

 

Buchanan Energy of Virginia, LLC Statements of Operations for the Three and Nine

Months Ended September 30, 2005

 

Buchanan Energy of Virginia, LLC Balance Sheet at September 30, 2005

 

Allegheny Energy Supply Development Services, LLC Balance Sheet at September 30, 2005

 

Allegheny Energy Supply Company, LLC Consolidated Statements of Operations for the Three

and Nine Months Ended September 30, 2005

 

Allegheny Energy Supply Company, LLC Consolidated Balance Sheet at September 30, 2005

 

 



 

 

ALLEGHENY ENERGY SOLUTIONS, INC

STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

Three Months Ended

Nine Months Ended

(In thousands)

September 30, 2005

September 30, 2005

 

 

 

Operating revenues

$10,048

$19,343

 

 

 

Operating expenses:

 

 

Operations and maintenance

9,721

18,768

Depreciation and amortization

43

129

Taxes other than income taxes

13

62

Total operating expenses

9,777

18,959

 

 

 

Operating income

271

384

 

 

 

Other income, net

22

42

 

 

 

Interest (income) expense

(2)

14

 

 

 

Income before income taxes

295

412

 

 

 

Income tax expense

1,080

157

 

 

 

Net (loss) income

$(785)

$255

 

 

 



 

 

ALLEGHENY ENERGY SOLUTIONS, INC

BALANCE SHEET

(unaudited)

 

 

 

September 30,

(In thousands)

2005

ASSETS

 

Current assets:

 

Cash and cash equivalents

$1,540

Accounts receivable:

 

Accounts payable to affiliates, net

(80)

Other

731

Allowance for uncollectible accounts

(4)

Other current assets

441

Total current assets

2,628

 

 

Property, plant and equipment, net:

 

In service, at original cost

860

Accumulated depreciation

(473)

Total property, plant and equipment, net

387

 

 

Other assets

26

 

 

Total assets

$3,041

 

 

LIABILITIES AND STOCKHOLDER’S EQUITY

 

 

 

Current liabilities:

 

Other accounts payable

1,637

Affiliated accounts payable

63

Accrued taxes

(419)

Other current liabilities

606

Total current liabilities

1,887

 

 

Deferred income taxes

(2,291)

 

 

Stockholder’s equity

3,445

 

 

Total liabilities and stockholder’s equity

$3,041

 

 

 



 

 

ALLEGHENY VENTURES, INC

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three Months Ended

Nine Months Ended

(In thousands)

September 30, 2005

September 30, 2005

 

 

 

Operating revenues

$12,752

$28,180

 

 

 

Operating expenses:

 

 

Operations and maintenance

27,092

43,006

Depreciation and amortization

670

1,911

Taxes other than income taxes

189

597

Total operating expenses

27,951

45,514

 

 

 

Operating loss

(15,199)

(17,335)

 

 

 

Other income and expenses, net

(159)

3,555

 

 

 

Net interest income

(22)

(186)

 

 

 

(Loss) before income taxes

(15,336)

(13,593)

 

 

 

Income tax benefit

(4,499)

(5,563)

 

 

 

Net (loss)

$(10,837)

$(8,030)

 

 

 

 



 

 

ALLEGHENY VENTURES, INC

CONSOLIDATED BALANCE SHEET

(unaudited)

 

 

September 30,

(In thousands)

2005

ASSETS

 

Current assets:

 

Cash and cash equivalents

$6,516

Accounts receivable:

 

Customer

1,408

Other

2,174

Allowance for uncollectible accounts

(34)

Materials and supplies

2,443

Prepaid taxes

177

Other

460

Total current assets

13,144

 

 

Property, plant and equipment, net:

 

In service, at original cost

44,608

Accumulated depreciation

(10,605)

Subtotal

34,003

Construction work in progress

(534)

Total property, plant and equipment, net

33,469

 

 

Investments and other assets:

 

Unregulated investments

3,061

Other

360

Total investments and other assets

3,421

 

 

Deferred charges

45

 

 

Total assets

$50,079

 

 

LIABILITIES AND STOCKHOLDER’S EQUITY

 

Current liabilities:

 

Other accounts payable

$18,794

Accounts payable to affiliates, net

707

Accrued taxes

(3,731)

Other current liabilities

(2,169)

Total current liabilities

13,601

 

 

Deferred credits:

 

Income tax credits

(24,442)

Other

1,062

Total deferred credits

(23,380)

 

 

Stockholder’s equity

59,858

 

 

Total liabilities and stockholder’s equity

$50,079

 

 

 

 

 

 

 



 

 

BUCHANAN ENERGY COMPANY OF VIRGINIA, LLC

STATEMENTS OF OPERATIONS

(unaudited)

 

 

 

 

Three Months Ended

 

Nine Months Ended

(In thousands)

September 30, 2005

September 30, 2005

 

 

 

Operating revenues

$--

$--

 

 

 

Operating expenses

--

--

 

 

 

Operating income

--

--

 

 

 

Other income and expenses, net

(14)

(133)

 

 

 

Loss before income taxes

(14)

(133)

 

 

 

Income tax benefit

(5)

(48)

 

 

 

Net loss

$(9)

$(85)

 

 

 



 

 

BUCHANAN ENERGY COMPANY OF VIRGINIA, LLC

BALANCE SHEET

(unaudited)

 

 

 

September 30,

(In thousands)

2005

ASSETS

 

Cash

$343

 

 

Unregulated investments

25,300

 

 

Total assets

$25,643

 

 

LIABILITIES AND MEMBER’S EQUITY

 

Accrued taxes

$(865)

 

 

Deferred income taxes

1,703

 

 

Member’s equity

24,805

 

 

Total liabilities and member’s equity

$25,643

 

 

 



 

 

ALLEGHENY ENERGY SUPPLY DEVELOPMENT SERVICES, LLC

BALANCE SHEET

(unaudited)

 

 

September 30,

(In thousands)

2005

ASSETS

 

Accounts receivable from affiliates, net

$67

 

 

LIABILITIES AND MEMBER’S EQUITY

 

Current liabilities:

 

Accounts payable to affiliates, net

741

Accrued taxes

(656)

Total current liabilities

85

 

 

Deferred income taxes

(4,911)

 

 

Member’s equity

4,893

 

 

Total liabilities and member’s equity

$67

 

 

 



 

 

ALLEGHENY ENERGY SUPPLY COMPANY, LLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

Three Months Ended

Nine Months Ended

(In thousands)

September 30, 2005

September 30, 2005

 

 

 

Operating revenues

$387,892

$1,064,348

 

 

 

Operating expenses:

 

 

Fuel consumed in electric generation

165,738

430,767

Purchased power and transmission

2,874

46,383

Operations and maintenance

52,911

191,334

Depreciation and amortization

29,585

88,336

Taxes other than income taxes

14,316

42,921

Total operating expenses

265,424

799,741

 

 

 

Operating income

122,468

264,607

 

 

 

Other income and expenses, net

2,245

15,949

 

 

 

Interest expense

77,850

169,178

 

 

 

Income from continuing operations before

 

 

income taxes and minority interest

46,863

111,378

 

 

 

Income tax expense from continuing operations

13,265

32,472

 

 

 

Minority interest in net income of subsidiaries

1,703

5,176

 

 

 

Income from continuing operations

31,895

73,730

 

 

 

Loss from discontinued operations, net of tax

(927)

(9,374)

 

 

 

Net Income

$30,968

$64,356

 

 

 



 

 

ALLEGHENY ENERGY SUPPLY COMPANY, LLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(unaudited)

 

 

 

September 30,

(In thousands)

2005

 

 

ASSETS

 

Current assets:

 

Cash and cash equivalents

$52,845

Accounts receivable:

 

Wholesale and other

55,961

Allowance for uncollectible accounts

(1,717)

Note receivable from affiliate

23,294

Materials and supplies

46,029

Fuel

47,148

Deferred income taxes

64,385

Prepaid taxes

17,966

Assets held for sale

1,521

Commodity contracts

11,862

Collateral deposits

132,246

Restricted funds

1,835

Other

4,752

Total current assets

458,127

 

 

Property, plant and equipment, net:

 

Generation

4,721,330

Transmission

83,030

Other

18,498

Accumulated depreciation

(2,282,146)

Subtotal

2,540,712

Construction work in progress

63,407

Total property, plant and equipment, net

2,604,119

 

 

Investments and other assets:

 

Assets held for sale

46,998

Goodwill

367,287

Investments in unconsolidated affiliate

25,300

Other

18,242

Total investments and other assets

457,827

 

 

Deferred charges:

 

Commodity contracts

1,608

Other

23,504

Total deferred charges

25,112

 

 

Total assets

$3,545,185

 

 

 



 

 

ALLEGHENY ENERGY SUPPLY COMPANY, LLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET (continued)

(unaudited)

 

 

September 30,

(In thousands)

2005

 

 

LIABILITIES AND MEMBERS’ EQUITY

 

Current liabilities:

 

Long-term debt due within one year

$2,673

Accounts payable

88,627

Accounts payable to affiliates, net

5,165

Accrued taxes

24,706

Commodity contracts

98,456

Accrued interest

34,464

Other

8,352

Total current liabilities

262,443

 

 

Long-term debt

2,422,955

 

 

Deferred credits and other liabilities:

 

Commodity contracts

35,787

Investment tax credit

55,301

Deferred income taxes

40,697

Other

114,074

Total deferred credits and other liabilities

245,859

 

 

Minority interest

47,509

 

 

Members’ equity

566,419

 

 

Total liabilities and members’ equity

$3,545,185

 

 



 

 

 

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.

 

 

 

 

 

 

 

 

 

 

By:

/s/ Thomas R. Gardner

 

 

Thomas R. Gardner

 

 

Vice President, Controller &

November 29, 2005

 

Chief Accounting Officer