Form U-13-60

ANNUAL REPORT

For the Period Beginning January 1, 2002 and Ending December 31, 2002

TO THE

U.S. SECURITIES AND EXCHANGE COMMISION

OF

Allegheny Energy Service Corporation

Date of Incorporation: November 22, 1963

A Maryland Corporation

Principal Executive:

10435 Downsville Pike
Hagerstown, MD 21740-1766


Address correspondence to:

Thomas R. Gardner,
VP & Controller
10435 Downsville Pike
Hagerstown, MD 21740-1766


Name of Principal Holding Company:

Allegheny Energy, Inc.

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 inadequate, 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 ('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, '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, schedules, 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.

2
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
DESCRIPTION OF SCHEDULES AND ACCOUNTS	SCHEDULE OR ACCT. NO.	PAGE 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
Departmental Analysis of Salaries	Account 920	25
Outside Services Employed	Account 923	26
Employee Pensions and Benefits	Account 926	27
General Advertising Expense	Account 930 .1	28
Miscellaneous General Expense	Account 930. 2	29
Rents	Account 931	30
Taxes Other Than Income Taxes	Account 408	31
Donations	Account 426.1	32
Other Deductions	Account 426.5	33
Notes to Statement of Income	Schedule XVIII	34

3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
DESCRIPTION OF REPORTS OR STATEMENTS	PAGE NO.
ORGANIZATION CHART	35
METHODS OF ALLOCATION	36
ANNUAL STATEMENT OF COMPENSATION FOR USE      OF CAPITAL BILLED	37
ANNUAL REPORT OF ALLEGHENY ENERGY SERVICE CORPORATION SIGNATURE CLAUSE	38

4
ANNUAL REPORT OF    Allegheny Energy 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
		2002	2001
	SERVICE COMPANY PROPERTY
101	Service company property (Schedule II)	18,239,438	24,598,363
107	Construction work in progress (Schedule II)	0	0
	Total Property	18,239,438	24,598,363
108	Less accumulated provision for depreciation
	and amortization of service company
	property (Schedule III)	(4,235,898)	(2,732,192)
	Net Service Company Property	14,003,540	21,866,171
	INVESTMENTS
123	Investments in associate companies
	(Schedule IV)	38,648,000	0
124	Other investments (Schedule IV)	26,060,749	2,120,000
	Total Investments	64,708,749	2,120,000
	CURRENT AND ACCRUED ASSETS
131	Cash	3,084	25,299
134	Special deposits	137,988	0
135	Working funds	0	168,520
136	Temporary cash investments (Schedule IV)	0	0
141	Notes receivable	0	0
143	Accounts receivable	1,424,206	2,149,452
144	Accumulated provision of uncollectible
	accounts	0	0
146	Accounts receivable from associate
	companies (Schedule V)	169,313,924	39,438,452
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	435,418	2,918,113
174	Miscellaneous current and accrued
	assets (Schedule VIII)	1,066,483	0
	Total Current and Accrued Assets	172,381,103	44,699,836
	DEFERRED DEBITS
181	Unamortized debt expense	0	0
184	Clearing accounts	0	0
186	Miscellaneous deferred debits (Schedule IX)	71,783,298	72,686,189
188	Research, development, or demonstration
	expenditures (Schedule X)	0	0
190	Accumulated deferred income taxes	0	0
	Total Deferred Debits	71,783,298	72,686,189
	TOTAL ASSETS AND OTHER DEBITS	322,876,690	141,372,196

5
ANNUAL REPORT OF    Allegheny Energy Service Corporation
SCHEDULE I COMPARATIVE BALANCE SHEET
ACCOUNT	LIABILITIES AND PROPRIETARY CAPITAL	AS OF DECEMBER 31
		2002	2001
	PROPRIETARY CAPITAL
201	Common stock issued (Schedule XI)	50,000	50,000
211	Miscellaneous paid-in capital (Schedule XI)	(27,370,183)	0
215	Appropriated retained earnings (Schedule XI)	0	0
216	Unappropriated retained earnings (Schedule (XI)	0	0
	Total Proprietary Capital	(27,320,183)	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
227	Obligations under capital leases-noncurrent	2,385,400	2,264,333
228	Accumulated provision for pension and benefits	244,252,838	0
	Total Long-Term Debt	246,638,238	2,264,333
	CURRENT AND ACCRUED LIABILITIES
231	Notes payable	0	0
232	Accounts payable	65,421,900	51,635,114
233	Notes payable to associate companies (Schedule XIII)	0	0
234	Accounts payable to associate companies (Schedule XIII)	0	0
236	Taxes accrued	12,353,948	198,175
237	Interest accrued	0	0
238	Dividends declared	0	0
241	Tax collections payable	768,803	584,296
242	Miscellaneous current and accrued liabilities
	(Schedule XIII)	10,010,996	1,283,286
	Total Current and Accrued Liabilities	88,555,647	53,700,871
	DEFERRED CREDITS
253	Other deferred credits	72,324,604	77,600,508
255	Accumulated deferred investment tax credits	0	0
	Total Deferred Credits	72,324,604	77,600,508
282	ACCUMULATED DEFERRED INCOME TAXES	(57,321,616)	7,756,484
	TOTAL LIABILITIES AND PROPRIETARY CAPITAL	322,876,690	141,372,196

6
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended      December 31, 2002
SCHEDULE II - SERVICE COMPANY PROPERTY
		BALANCE AT				BALANCE
		BEGINNING		RETIREMENTS-	OTHER	AT CLOSE
DESCRIPTION		OF YEAR	ADDITIONS-1/	OR SALES - 1a/	CHANGES 2/	OF YEAR
SERVICE COMPANY PROPERTY
ACCOUNT
301	ORGANIZATION
303	MISCELLANEOUS
	INTANGIBLES PLANT	3,827,220	0	0	0	3,827,220
304	LAND AND LAND RIGHTS
307	EQUIPMENT           3/	1,146,406	5,082,555	0	(2,677,563)	3,551,398
309	AUTOMOBILES, OTHER
	VEHICLES AND RELATED
	GARAGE EQUIPMENT
310	AIRCRAFT AND
	AIRPORT EQUIPMENT	8,580,574	0	0	(149,815)	8,430,759
390.2	STRUCTURES AND
	IMPROVEMENTS	8,614,102	0	8,614,102	0	0
391	OFFICE FURNITURE	1,648,811	0	0	0	1,648,811
397	COMMUNICATION
	EQUIPMENT	781,250	0	0	0	781,250
	SUBTOTAL	24,598,363	5,082,555	8,614,102	(2,827,378)	18,239,438
107	CONSTRUCTION WORK
	IN PROGRESS
	TOTAL	24,598,363	5,082,555	8,614,102	(2,827,378)	18,239,438
PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
	1/     Additions include:           Equipment - $3,955,006 represents EMC Corporation lease and $1,127,549 represents ICC Corp Lease.
	1a/   Retirements or Sales Include:           Retirement of improvements on NY office.
	2/     Other Charges Include:           Amortization of capitalized leases.

7
	3/        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:
SUB ACCOUNT DESCRIPTION		ADDITIONS	BALANCE AT CLOSE OF YEAR
Capitalized lease for equipment		5,082,555	3,551,398
TOTAL		5,082,555	3,551,398

8
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
					OTHER
		BALANCE AT	ADDITIONS	-	CHANGES	BALANCE
DESCRIPTION		BEGINNING	CHARGED TO	RETIREMENTS	ADD	AT CLOSE
		OF YEAR	ACCT 403	_	(DEDUCT)	OF YEAR
ACCOUNT
301	ORGANIZATION					0
303	MISCELLANEOUS
	INTANGIBLES PLANT	(1,605,534)	(1,336,873)	0	0	(2,942,407)
304	LAND AND LAND RIGHTS					0
306	LEASEHOLD
	IMPROVEMENTS					0
307	EQUIPMENT					0
309	AUTOMOBILES, OTHER
	VEHICLES AND RELATED
	GARAGE EQUIPMENT					0
310	AIRCRAFT AND
	AIRPORT EQUIPMENT	(378,107)	(197,290)	0	0	(575,397)
311	OTHER SERVICE
	COMPANY PROPERTY
390	STRUCTURES AND
	IMPROVEMENTS	(526,417)	526,417	0	0	0
391	OFFICE FURNITURE	(157,030)	(235,544)	0	0	(392,574)
397	COMMUNICATION EQUIPMENT
	EQUIPMENT	(65,104)	(260,416)	0	0	(325,520)
	TOTAL	(2,732,192)	(1,503,706)	0	0	(4,235,898)
PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:

9
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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
Minimum Liability - Pension		0	38,648,000
		0	38,648,0000
ACCOUNT 124 - OTHER INVESTMENTS
Long-term cash deposit on future Corporate Jet purchase		700,000	700,000
New York Mercantile Exchange seats		1,420,000	0
Transfer in of Serp Investment		0	25,360,749
		2,120,000	26,060,749
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
None.
		0	0
TOTAL		2,120,000	64,708,749

10
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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 Energy, Inc.				(62,214)	3,167,281
Monongahela Power Company				16,726,450	38,178,674
The Potomac Edison Company				16,253,986	28,035,329
West Penn Power Company				23,730,018	32,086,189
Mountaineer Gas				2,133,662	10,287,081
Mountaineer Gas Services				32,711	101,608
Allegheny Energy Supply, Inc.				(21,436,074)	52,607,364
Allegheny Energy Hunlock Creek, LLC				5,016	(2,744)
Allegheny Energy Supply Conemaugh				654	3,641
Allegheny Energy Supply Gleason Generating Facility, LLC				131,288	377,054
Allegheny Energy Supply Wheatland Generating Facility, LLC				134,098	407,741
Allegheny Energy Supply Lincoln Generating Facility, LLC				21,553	60,027
Allegheny Generating Company				55,547	35,603
Allegheny Pittsburgh Coal Company				(528)	3,799
Allegheny Ventures, Inc.				446,890	1,295,462
AYP Energy, Inc.				2	0
Allegheny Communications Connect, Inc.				804,533	1,539,314
Allegheny Energy Solutions, Inc.				401,383	946,006
Alliance Gas Services Holdings LLC				0	515
West Virginia Power & Transmission				32,281	25,002
West Penn Funding, LLC				(103)	0
Green Valley Hydro, LLC				24,609	158,978
Fellon McCord				2,690	0
TOTAL				39,438,452	169,313,924
ANALYSIS OF CONVENIENCE OR ACCOMODATION PAYMENTS:
		Monongahela	The Potomac	West Penn
DESCRIPTION		Power	Edison	Power	TOTAL
		Company	Company	Company	PAYMENTS
None
TOTAL PAYMENTS		0	0	0	0

11
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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		0	0	0

12
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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		0	0	0

13
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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
Deferred Tax Reclass - Current Asset		0	1,066,483
TOTAL		0	1,066,483

14
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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
Pension Prepayment		31,762,439	0
Miscellaneous Debits - Other Deferred Charges		1,149,529	(807)
OPEB Deferred from Mountaineer Gas		9,623,887	9,341,176
Pension Deferred from Mountaineer Gas		6,187,873	6,187,873
Deferred Hourly Wage Accruals		(403,318)	0
Deferred Tax Reclass - Asset		24,365,779	56,255,133
Treasury Deferred Receivables		0	(77)
TOTAL		72,686,189	71,783,298

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ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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
None.
TOTAL		0

16
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
SCHEDULE XI- PROPRIETARY CAPITAL
ACCOUNT				NUMBER OF	PAR OR
NUMBER		CLASS OF STOCK		SHARES	STATED VALUE		OUTSTANDING CLOSE OF PERIOD
				AUTHORIZED	PER SHARE		NO OF SHARES		TOTAL AMOUNT
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       Other paid-in Capital						2,080,532
			Excess over Unr Pr Service Cost						(49,497,000)
			Fed Inc Tx-Exce Unr Pr Svc Cst						15,860,806
			St Inc Tx-Exces Unr Pr Svc Cst						4,185,479
									(27,370,183)
ACCOUNT 215			APPROPRIATED RETAINED EARNINGS          None.						0
			TOTAL						(27,370,183)
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				0		0		0		0

17
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
SCHEDULE XII- LONG TERM DEBT
INSTRUCTIONS:   Advances from associate companies should be reported separately for
advances on notes, and 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
	OBLIGATIONS
NAME OF CREDITOR	CLASS &	DATE			BALANCE AT			BALANCE
	SERIES	OF	INTEREST	AMOUNT	BEGINNING			AT CLOSE
	OF OBLIGATIONS	MATURITY	RATE	AUTHORIZED	OF YEAR	ADDITIONS	DEDUCTIONS	OF YEAR
ACCOUNT 223-
ADVANCES FROM
ASSOCIATE
COMPANIES:
None.								0
ACCOUNT 224-
OTHER LONG-
TERM DEBT:
None.								0
TOTAL	0	0	0	0	0		0	0

18
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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
TOTAL		0	0
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
TOTAL		0	0
ACCOUNT 242 -  MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Capital leases		886,697	3,020,807
Audit Expense Liability		352,501
Deferred Tax		0	1,066,483
Impairment on Lease		0	4,909,248
Reserve Due to D&O Liability, reserve for deductible related to fiduciary liability		0	1,000,000
Workers Compensation Awards		43,845	14,458
Other Current and Accrued Liabilities - Monongahela Power		243	0
TOTAL		1,283,286	10,010,996

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ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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.
	None other than those specifically noted on various pages.

20
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
SCHEDULE XV
STATE OF INCOME
ACCOUNT	DESCRIPTION	CURRENT YEAR	PRIOR YEAR
	INCOME
457	Services rendered to associate companies	749,644,387	533,013,990
458	Services rendered to nonassociate companies		0
421	Miscellaneous income/loss	558,022	(558,200)
454	Rent from Electric Property
	Total Income	750,202,409	532,455,790
	EXPENSE
101-108	Utility plant expenses	0	101,645,560
500-557	Power production expenses	0	98,768,724
560-598	Transmission & Distribution expenses	0	59,252,383
870-894	Transmission & Distribution expenses-Gas	0	12,532,718
901-910	Customer accounts & services expenses	0	35,389,118
912-913	Sales expenses	0	5,514,662
920	Salaries and wages	(a) 310,832,188	62,746,110
921	Office supplies and expenses	97,560,679	24,249,384
922	Administrative expense transferred - credit	0	551
923	Outside services employed	60,303,328	17,500,241
924	Property insurance	1,709,232	18,000
925	Injuries and damages	1,537,102	4,039,636
926	Employee pensions and benefits	177,630,298	46,310,365
928	Regulatory commission expense	0	595,733
930.1	General advertising expenses	1,927,863	448,546
930.2	Miscellaneous general expenses	6,781,909	13,606,932
931	Rents	58,081,076	25,856,009
935	Maintenance of structures and equipment	0	4,200,502
403	Depreciation and amortization expense	667,839	0
408	Taxes other than income taxes	29,687,007	18,695,398
409	Income taxes	19,072,592	5,449,716
410	Provision for deferred income taxes	40,459,825	376,788
411	Provision for deferred income taxes - credit	(59,535,631)	(5,715,348)
411.5	Investment tax credit	0	0
418	Nonoperating Rental Income	1,936,558
426.1	Donations	1,357,870	169,784
426	Other deductions	0	565,580
427	Interest on long-term debt		0
431	Other interest expense	192,674	238,698
	Total Expense	750,202,409	532,455,790
	Net Income or (Loss)	0	(0)
(a) Note, in the current year all salaries and wages were classified in Acct. 920 as the other accounts are not applicable to Allegheny Energy Service Corporation.

21
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
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
		1/
	457-1	457-2	457-3
West Penn Power Company	86,230,393	83,590,557		169,820,950
Monongahela Power Company	73,203,994	92,503,198		165,707,192
Allegheny Energy Supply Company	147,780,110	96,498,671		244,278,781
The Potomac Edison Company	51,217,639	55,651,592		106,869,231
Mountaineer Gas	27,760,627	13,897,655		41,658,282
Allegheny Energy, Inc.	7,499,285	607,873		8,107,158
Allegheny Ventures, Inc.	2,594,018	475,589		3,069,607
Allegheny Comm. Connect, Inc.	2,715,513	1,305,233		4,020,746
AE Global Markets LLC	5,883	0		5,883
Allegheny Energy Solutions, Inc.	2,265,343	649,929		2,915,273
AE Supply Gleason Generating Facility LLC	811,851	115,116		926,967
AE Supply Wheatland Generating Facility LLC	874,925	140,562		1,015,488
Allegheny Generating Company	121,905	46,686		168,590
West Virginia Power and Transmission Company	136,639	46,318		182,957
Allegheny Energy Hunlock Creek, LLC	2,513	10,545		13,057
Green Valley Hydro, LLC	372,647	58,963		431,610
Mountaineer Gas Services	179,176	49,156		228,332
Alliance Gas Services Inc.	897	0		897
AE Supply Lincoln Generating Facility LLC	65,308	82,082		147,390
Alliance Energy Service Part	1,984	0		1,984
NYC Energy Inc.	533	0		533
Allegheny Pittsburgh Coal Co.	6,615	0		6,615
Allegheny Energy Conemaugh	10,212	0		10,212
AYP Energy, Inc.	456	0		456
Fellon McCord	55,394	0		55,394
Alliance Gas Services Holdings, LLC	802	0		802
TOTAL	403,914,662	345,729,725	0	749,644,387

22
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
	DIRECT	INDIRECT	COMPENSATION		EXCESS	TOTAL
NAME OF NONASSOCIATE COMPANY	COST	COSTS	FOR USE	TOTAL	OR	AMOUNT
	CHARGED	CHARGED	OF CAPITAL	COST	DEFICIENCY	BILLED
	458-1	458-2	458-3		458-4
None
TOTAL
INSTRUCTION: Provide a brief description of the services rendered to each nonassociate company

23
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended           December 31, 2002
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
		ASSOCIATE			NONASSOCIATE			1/ 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
920	SALARIES AND WAGES	168,119,323	142,712,865	310,832,188				168,119,323	142,712,865	310,832,188
921	OFFICE SUPPLIES AND EXPENSES	86,030,071	11,530,608	97,560,679				86,030,071	11,530,608	97,560,679
923	OUTSIDE SERVICES EMPLOYED	29,312,649	30,990,678	60,303,327				29,312,649	30,990,678	60,303,327
924	PROPERTY INSURANCE	305,119	1,404,113	1,709,232				305,119	1,404,113	1,709,232
925	INJURIES AND DAMAGES	26,347	1,510,755	1,537,102				26,347	1,510,755	1,537,102
926	EMPLOYEE PENSIONS AND BENEFITS	64,095,813	113,534,485	177,630,298				64,095,813	113,534,485	177,630,298
930.1	GENERAL ADVERTISING EXPENSES	271,338	1,656,525	1,927,863				271,338	1,656,525	1,927,863
930.2	MISCELLANEOUS GENERAL EXPENSES	5,309,939	1,471,971	6,781,910				5,309,939	1,471,971	6,781,910
931	RENTS	47,454,900	10,626,176	58,081,076				47,454,900	10,626,176	58,081,076
403	DEPRECIATION AND AMORTIZATION
	EXPENSE	667,838		667,838				667,838		667,838
408	TAXES OTHER THAN INCOME TAXES	763,664	28,923,344	29,687,008				763,664	28,923,344	29,687,008
409	INCOME TAXES		19,072,592	19,072,592					19,072,592	19,072,592
410	PROVISION FOR DEFERRED INCOME
	TAXES		40,459,825	40,459,825					40,459,825	40,459,825
411	PROVISION FOR DEFERRED INCOME
	TAXES - CREDIT		(59,535,631)	(59,535,631)					(59,535,631)	(59,535,631)
411.5	INVESTMENT TAX CREDIT
418	NONOPERATING RENTAL INCOME	1,936,558		1,936,558				1,936,558		1,936,558
426.1	DONATIONS	116,975	1,240,895	1,357,870				116,975	1,240,895	1,357,870
426	OTHER DEDUCTIONS									0
427	INTEREST ON LONG-TERM DEBT
431	OTHER INTEREST EXPENSE		192,674	192,674					192,674	192,674
INSTRUCTIONS: Total cost of service
will equal for associate and non-associate
companies the total amount billed under
their separate analysis of billing schedules.
TOTAL EXPENSES		404,410,534	345,791,875	750,202,409				404,410,534	345,791,875	750,202,409
Compensation for use of equity capital
430 INTEREST ON DEBT TO ASSOC COS.
TOTAL COST OF SERVICE		404,410,534	345,791,875	750,202,409				404,410,534	345,791,875	750,202,409

24
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
				DEPARTMENT OR SERVICE FUNCTION
		TOTAL			LEGAL	FINANCE	AUDIT
	DESCRIPTION OF ITEMS	AMOUNT	OVERHEAD	EXECUTIVE	GROUP	ADMINISTRATION	SERVICES	CONTROLLER	TREASURER
920	SALARIES AND WAGES	310,832,191	1,216,657	5,630,842	5,455,094	2,874,421	2,039,373	10,003,053	3,551,136
921	OFFICE SUPPLIES AND EXPENSES	97,560,677	73,605,776	976,651	518,003	217,629	209,076	392,400	129,471
923	OUTSIDE SERVICES EMPLOYED	60,303,326	5,601,913	3,100,435	4,427,564	1,053,197	3,018,009	2,513,835	351,194
924	PROPERTY INSURANCE	1,709,232			1,000,000			15,402	610,747
925	INJURIES AND DAMAGES	1,537,101						11	690,896
926	EMPLOYEE PENSIONS AND BENEFITS	177,630,294	(58,624,121)	994,547	974,582	299,969	376,318	1,826,643	660,418
930.1	GENERAL ADVERTISING EXPENSE	1,927,864		16,621	1,199
930.2	MISCELLANEOUS GENERAL EXPENSE	6,781,911	71,197	2,457,055	83,183		1,624	10,901	16,089
931	RENTS	58,081,076	20,432,586	185,363	140,054	15,577	53,367	443,364	81,586
935	MAINTENANCE OF STRUCTURES AND
	EQUIPMENT	0
403	DEPRECIATION AND AMORTIZATION
	EXPENSE	667,839	667,839
408	TAXES OTHER THAN INCOME TAXES	29,687,007	29,687,007
409	INCOME TAXES	19,072,592	19,072,592
410	PROVISION FOR DEFERRED INCOME
	TAXES	40,459,825	40,459,825
411	PROVISION FOR DEFERRED INCOME
	TAXES - CREDIT	(59,535,631)	(59,535,631)
411.5	INVESTMENT TAX CREDIT
418	NONOPERATING RENTAL INCOME	1,936,558	1,936,558
426.1	DONATIONS	1,357,870		1,356,537
426	OTHER DEDUCTIONS	0
427	INTEREST ON LONG-TERM DEBT
430	INTEREST ON DEBT TO ASSOCIATE
	COMPANIES
431	OTHER INTEREST EXPENSE	192,675	22,665
INSTRUCTIONS: Indicate each department or service
function. (See Instruction 01-3 General
Structure of Accounting System: Uniform
System of Accounts)
TOTAL EXPENSES		750,202,409	74,614,863	14,718,051	12,599,679	4,460,793	5,697,767	15,205,609	6,091,537

24A
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended     December 31, 2002
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
		DEPARTMENT OR SERVICE FUNCTION
		REGULATION &	CORP. COMM.	HUMAN	INFORMATION	PROCUREMENT	SYSTEM	AE SUPPLY
	DESCRIPTION OF ITEMS	RATES	& ADMIN.	RESOURCES	SYSTEMS		SECURITY	ADMINISTRATION
920	SALARIES AND WAGES	3,259,598	2,817,758	(6,765,662)	8,326,756	1,598,479	1,430,974	1,021,392
921	OFFICE SUPPLIES AND EXPENSES	221,248	193,096	55,008	1,280,591	53,179	230,401	169,125
923	OUTSIDE SERVICES EMPLOYED	353,095	2,316,040	1,382,173	9,813,556	579,891	838,150	1,299,834
924	PROPERTY INSURANCE
925	INJURIES AND DAMAGES			814,369
926	EMPLOYEE PENSIONS AND BENEFITS	618,504	318,213	153,271,382	1,599,644	291,653	261,649	424,805
930.1	GENERAL ADVERTISING EXPENSE		431,137	79,683
930.2	MISCELLANEOUS GENERAL EXPENSE	7,185	711	(2,390)	1,214		315	1,581
931	RENTS	144,948	55,999	244,366	5,269,302	59,808	44,611	6,633
935	MAINTENANCE OF STRUCTURES AND
	EQUIPMENT
403	DEPRECIATION AND AMORTIZATION EXPENSE
408	TAXES OTHER THAN INCOME TAXES
409	INCOME TAXES
410	PROVISION FOR DEFERRED INCOME TAXES
411	PROVISION FOR DEFERRED INCOME
	TAXES - CREDIT
411.5	INVESTMENT TAX CREDIT
418	NONOPERATING RENTAL INCOME
426.1	DONATIONS
426	OTHER DEDUCTIONS
427	INTEREST ON LONG-TERM DEBT
430	INTEREST ON DEBT TO ASSOCIATE COMPANIES
431	OTHER INTEREST EXPENSE			170,010
INSTRUCTION: Indicate each department or
Service function. (See Instruction 01-3 General
Structure of Accounting System: Uniform System
of Accounts.)
TOTAL EXPENSES		4,604,578	6,132,954	149,248,939	26,291,063	2,583,010	2,806,100	2,923,370
Note: Overhead amounts include adjustments and clearing that were not done at the department level.

24B
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
			DEPARTMENT OR SERVICE FUNCTION
			AE GLOBAL	INFORMATION		PRODUCTION	PROJECTS	ALLEGHENY	AP CORPORATE
			ENERGY	MANAGEMENT	PLANNING	SYSTEM & SALES	DIVISION	POWER	& AP
	DESCRIPTION OF ITEMS		MARKETS	SUPPLY	SUPPLY	SUPPLY	SUPPLY	ADMINISTRATION	HUMAN RESOURCES
920	SALARIES AND WAGES		18,379,877	1,654,305	12,783	91,510,738	9,240,619	2,118,525	2,110,335
921	OFFICE SUPPLIES AND EXPENSES		4,443,014	14,159	448,372	640,565	1,667,720	175,460	168,547
923	OUTSIDE SERVICES EMPLOYED		4,924,610	338,320	1,320,152	158,317	143,036	26,019	320,911
924	PROPERTY INSURANCE
925	INJURIES AND DAMAGES						1,495
926	EMPLOYEE PENSIONS AND BENEFITS		28,091,052	326,405		18,132,203	1,824,873	308,610	125,890
930.1	GENERAL ADVERTISING EXPENSE		3,732
930.2	MISCELLANEOUS GENERAL EXPENSE		19,063		3,855,583	5,295	83,674	12,268	255
931	RENTS		26,626,590	19,262	1,116	62,849	72,320	70,284	15,092
935	MAINTENANCE OF STRUCTURES AND EQUIPMENT
403	DEPRECIATION AND AMORTIZATION EXPENSE
408	TAXES OTHER THAN INCOME TAXES
409	INCOME TAXES
410	PROVISION FOR DEFERRED INCOME TAXES
411	PROVISION FOR DEFERRED INCOME
	TAXES - CREDIT
411.5	INVESTMENT TAX CREDIT
418	NONOPERATING RENTAL INCOME
426.1	DONATIONS					31
426	OTHER DEDUCTIONS
427	INTEREST ON LONG-TERM DEBT
430	INTEREST ON DEBT TO ASSOCIATE COMPANIES
431	OTHER INTEREST EXPENSE
INSTRUCTION: Indicate each
Department or service function.
(See Instruction 01-3 General
Structure of Accounting System:
Uniform System of Accounts.)
		TOTAL EXPENSES	82,487,938	2,352,451	5,638,006	110,509,998	13,033,737	2,711,166	2,741,030  -
Note: Overhead amounts include adjustments and clearing that were not done at the department level.

24C
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
			DEPARTMENT OR SERVICE FUNCTION
			AP	AP	AP SYSTEM	(Unregulated)
			CUSTOMER	CUSTOMER	PLANNING &	ALLEGHENY
	DESCRIPTION OF ITEMS		AFFAIRS	OPERATIONS	OPERATIONS	VENTURES
920	SALARIES AND WAGES		21,351,971	99,201,857	19,269,846	3,521,464
921	OFFICE SUPPLIES AND EXPENSES		3,093,650	5,250,522	3,337,617	69,397
923	OUTSIDE SERVICES EMPLOYED		3,605,376	5,844,727	6,846,539	126,433
924	PROPERTY INSURANCE					83,083
925	INJURIES AND DAMAGES			21,416	2,612	6,302
926	EMPLOYEE PENSIONS AND BENEFITS		3,650,126	17,835,683	3,586,487	454,759
930.1	GENERAL ADVERTISING EXPENSE		1,359,816	23,998		11,678
930.2	MISCELLANEOUS GENERAL EXPENSE		104,901	7,383	44,575	249
931	RENTS		786,840	1,963,042	1,283,337	2,780
935	MAINTENANCE OF STRUCTURES AND EQUIPMENT
403	DEPRECIATION AND AMORTIZATION EXPENSE
408	TAXES OTHER THAN INCOME TAXES
409	INCOME TAXES
410	PROVISION FOR DEFERRED INCOME TAXES
411	PROVISION FOR DEFERRED INCOME
	TAXES - CREDIT
411.5	INVESTMENT TAX CREDIT
418	NONOPERATING RENTAL INCOME
426.1	DONATIONS		1,298	4
426	OTHER DEDUCTIONS
427	INTEREST ON LONG-TERM DEBT
430	INTEREST ON DEBT TO ASSOCIATE COMPANIES
431	OTHER INTEREST EXPENSE
INSTRUCTION: Indicate each
Department or service function.
(See Instruction 01-3 General
Structure of Accounting System:
Uniform System of Accounts.)
		TOTAL EXPENSES	33,953,978	130,148,632	34,371,013	4,276,145	-
Note: Overhead amounts include adjustments and clearing that were not done at the department level.

							25
ANNUAL REPORT OF Allegheny Service Corporation
For the Year Ended December 31, 2002
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
Executive			6,847,499	1,385,035	5,462,464		27
Legal Group			5,455,094	250,179	5,204,916		52
Finance Administration			2,874,421		2,874,421		14
Audit Services			2,039,373		2,039,373		29
Controller			10,003,052	11,833	9,991,218		136
Treasurer			3,551,136	39,592	3,511,545		51
Regulation and Rates			3,259,598		3,259,598		43
Corporate Communication & Administration			2,817,758	7,089	2,810,669		22
Human Resources			(6,765,662)		(6,765,662)		54
Information Systems			8,326,756		8,326,756		110
Procurement			1,598,479		1,598,479		22
System Security			1,430,973		1,430,973		24
Allegheny Energy Supply Administration			1,021,392	12,688	1,008,704		12
AE Global Energy Markets			18,379,877	7,436	18,372,441		101
Information Management Supply			1,654,305	29,259	1,625,046		23
Planning - Supply			12,782		12,782		0
Production & Sales			91,510,738		91,510,738		1,328
Projects Division			9,240,619	50,302	9,190,316		114
Allegheny Power Administration			2,118,525	7,550	2,110,975		13
AP Corporate			2,110,335		2,110,335		108
Customer Affairs			21,351,971		21,351,971		317
Customer Operations			99,201,859	(1,124)	99,202,983		2,489
System Planning & Operations			19,269,844	2,235	19,267,609		242
Allegheny Ventures			3,521,464		3,521,464		123
		TOTAL	310,832,188	1,802,074	309,030,114	0	5,454
	In 1997 virtually all employees of associated companies were transferred to Allegheny Energy Service
	Corporation.

							26
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
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 $100,000, 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.
FROM WHOM PURCHASED						ADDRESS		AMOUNT
Legal Services:
	Vendors Over $25,000							5,608,933
	SULLIVAN & CROMWELL			125 BROAD STREET NEW YORK NY				2,478,285
	JONES DAY REAVIS & POGUE			222 E 41ST ST NEW YORK NY				526,724
	WINSTON & STRAWN LLP				36235 TREASURY CTR CHICAGO IL			438,147
	JACKSON KELLY PLLC				PO BOX 11276 CHARLESTON WV			332,898
	SIMPSON THACHER & BARTLETT				425 LEXINGTON AVE NEW YORK NY			269,405
	GALE & WENTWORTH				CAMPUS DRIVE PRINCETON NJ			245,902
	REED SMITH LLP				PO BOX 360074M PITTSBURGH PA			192,926
	JACK'S CREEK/SITKIN SMELTING				SITE ESCROW ACCOUNT BUFFALO NY			143,256
	SWIDLER BERLIN SHEREFF FRIEDMAN				PO BOX 3766 WASHINGTON DC			141,386
	ECKERT SEAMANS CHERIN & MELLOT				PO BOX 643187 PITTSBURGH PA			135,872
	BABST CALLAND CLEMENTS & ZOMNIR				2 GATEWAY CTR EIGHTH FLOOR PITTSBURGH PA			98,724
	THE ACCORD GROUP				1225 EYE ST NW WASHINGTON DC			96,000
	PRICEWATERHOUSE COOPERS LLP				2400 ELEVEN PENN CTR PHILADELPHIA PA			94,000
	ECONOMISTS INC				1200 NEW HAMPSHIRE AVE WASHINGTON DC			70,448
	CHARLES RIVER ASSOCIATES INC				D-3139 BOSTON MA			65,730
	J CHRISTOPHER LAGOW				830 E MAIN ST STE 1500 RICHMOND VA			65,284
	ZEVNIK HORTON LLP				77 W WACKER DR CHICAGO IL			60,410
	RUSSELL R JOHNSON III				3734 BYFIELD PL RICHMOND VA			49,669
	BALLARD SPAHR ANDREWS &				1735 MARKET ST 51ST FL PHILADELPHIA PA			39,941
	THROP REED & ARMSTRONG LLP				301 GRANT ST PITTSBURGH PA			33,478
	BALLARD SPAHR ANDREWS &				1735 MARKET ST 51ST FL PHILADELPHIA PA			30,448
	Miscellaneous - Under $25,000 (62)							682,289
	Total Legal Service							6,291,222
Audit Services
	Vendors Over $25,000							2,985,224
	PRICEWATERHOUSE COOPERS LLP		2400 ELEVEN PENN CTR PHILADELPHIA PA					2,985,224
	Miscellaneous - Under $25,000 (1)							780
	Total Audit Service							2,986,004
Medical Services
	Vendors Over $25,000							365,005

						26A
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
OUTSIDE SERVICES EMPLOYEE
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 $100,000, only the aggregate number and
			amount of all such payments included within the subaccount need be shown. Provide a subtotal for each
			each type of service
FROM WHOM PURCHASED					ADDRESS		AMOUNT
		GATEWAY REHABILITATION CENTER		RD 2 MOFFETT RUN RD ALIQUIPPA PA			90,613
		DRUG TESTING PROGRAMS		PO BOX 157 BRIDGEVILLE			81,817
		ACORDIA EMPLOYERS SERVICE CORP		PO BOX 3389 CHARLESTON WV			81,641
		PROFESSIONAL HEALTH SERVICES INC		83 S EAGLE RD HAVERTOWN PA			51,310
		AESTIQUE EXECUTIVE HEALTHCARE		ONE AESTHETIC WAY GREENSBURG PA			32,365
		FAIRMONT GENERAL HOSPITAL INC		PO BOX 3756 CHARLESTON WV			27,259
	Miscellaneous - Under $25,000c (184)						188,696
		Total Medical Service					553,701
Engineering Services
	Vendors Over $25,000						65,000
		EPRI		PO BOX 217097 CHARLOTTE NC			65,000
	Miscellaneous - Under $25,000 (21)						91,387
		Total Engineering Service					156,387
Temporary Staffing Services
	Vendors Over $25,000						1,064,798
		TECHNICAL SOLUTIONS INC		1817 GOLDEN MILE HWY PITTSBURGH PA			404,287
		MANPOWER INC		6TH & WOOD ST PITTSBURGH PA			346,232
		TRIGYN TECHNOLOGIES INC		1 METROPLEX DR EDISON NJ			118,719
		MAGIC LANTERN FILM & THEATRE INC		PO BOX 313 NEW YORK NY			102,038
		ACCOUNTEMPS		120 FIFTH AVENUE PLACE PITTSBURGH PA			48,781
		TODAYS STAFFING INC		PO BOX 910270 DALLAS TX			44,741
	Miscellaneous - Under $25,000 (20)						185,269
		Total Temporary Staffing					1,250,067
Rates Services
	Vendors Over $25,000						0
	Miscellaneous - Under $25,000 (3)						8,863
		Total Rates Service					8,863

26B
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
OUTSIDE SERVICES EMPLOYEE
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 $100,000, 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.
FROM WHOM PURCHASED					AMOUNT
Credit and Collection Services
	Vendors over $25,000				37,141
		TRANS UNION LLC			37,141
	Miscellaneous - Under $25,000 (17)				8,666
	Total Credit and Collection Service				45,807
Contract Work
	Vendors Over $25,000				5,667,652
		C & M COURIER SERVICE INC		BOX 4520 BRIDGEPORT WV	589,253
		ABB INC		PO BOX 88853 CHICAGO IL	425,913
		L J ASSOCIATES INC		200 PLEASANT UNITY RD STE 112 LATROBE PA	337,064
		FAYETTE CO COMMUNITY ACTION		140 N BEESON AVE UNIONTOWN PA	333,102
		COMMUNITY ACTION SOUTHWEST		315 EAST HALLAM AVE WASHINGTON PA	318,788
		INSIGHT SERVICES		345 MT LEBANON AVE PITTSBURGH PA	282,044
		LOWES HOME IMPROVEMENT WHSE		PO BOX 281791 ATLANTA GA	248,529
		COMDISCO NETWORK SERVICES		7145 COLLECTION CENTER CHICAGO IL	246,543
		WESTMORELAND HOUSING AUTH.		RD 6 BOX 223 GREENSBURG PA	200,436
		CIBER		1500 ARDMORE BLVD PITTSBURGH PA	187,931
		HIGH VOLTAGE MAINTENANCE CORP		310 VISTA PARK DR PITTSBURGH PA	182,075
		STORAGE TECHNOLOGY CORP		PO BOX 95011 CHIAGO IL	142,804
		IBM CORP		2100 CORPORATE DR WEXFORD PA	139,280
		PITNEY BOWES PRODUCTION MAIL		37 EXECUTIVE DR DANBURY CT	133,424
		TEK SYSTEMS INC		PO BOX 630853 BALTIMORE MD	103,208
		COMDISCO INC		PO BOX 96283 CHICAGO IL	95,821
		MAXIM GROUP		921 ELKRIDGE LANDING RD LINTHICUM MD	93,572
		WASHINGTON GROUP INTL		4350 NORTHERN PIKE MONROEVILLE PA	93,069
		THE WEAVERTOWN GROUP		PO BOX 692051 CINCINNATI OH	89,038
		GE - MOSTARDI PLATT		5942 COLLECTION CENTER CHICAGO IL	84,940
		IPC INFORMATION SYSTEMS INC		2009 RENAISSANCE BLVD KING OF PRUSSIA PA	83,797
		ALSTOM ESCA CORP		PO BOX 2551 CAROL STREAM IL	79,051
		OCE PRINTING SYSTEMS USA INC		116 GAITHER DRIVE MT LAUREL NJ	78,497
		A C COY CO		400 TECHNOLOGY DR CANONSBURG PA	77,745
		CENTRAL PA COMMUNITY ACTION		PO BOX 792 CLEARFIELD PA	73,416
		MARCELL ROSE ANTHONY		ALLSTATE DELIVERY SVC INC COLUMBUS OH	72,500
		SOUTH CENTRAL COMM ACTION		153 N STRATTON ST GETTYSBURG PA	70,797
		ALL CLEAR LOCATING SERVICE		401 E LOUTHER ST STE 302 CARLISLE PA	63,162
		OPTIMUS SOLUTIONS LLC		DEPT 77-6899 CHICAGO IL	61,769
		ELECTRO RENT CORP		DEPT CH 10997 PALATINE IL	53,360
		COMSYS		PO BOX 601674 CHARLOTTE NC	49,872
		AFFILIATED COMPUTER SER		14819 CENTRAL AVE SE ALBUQUERQUE NM	49,147

26C
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
OUTSIDE SERVICES EMPLOYEE
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 $100,000, 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.
FROM WHOM PURCHASED					AMOUNT
		EMC CORPORATION		176 SOUTH ST HOPKINTON MA	49,076
		LANTEK COMPUTER SERVICE		442 JANE ST CARNEGIE PA	48,282
		KFORCE.COM		PO BOX 277997 ATLANTA GA	39,348
		RAPIDIGM INC		4400 CAMPBELLS RUN RD PITTSBURGH PA	39,096
		BEDFORD-FULTON HOUSING SVC INC		10241 LINCOLN HIGHWAY EVERETT PA	36,987
		DELPHI CONSULTING INC		2435 WEST PIKE ST HOUSTON PA	35,624
		CERIDIAN EMPLOYER SERVICES		PO BOX 10989 NEWARK NJ	34,860
		ALLIN CONSULTING OF PA INC		381 MANSFIELD AVE PITTSBURGH PA	33,699
		BECKWITH MACHINERY CO		4565 WILLIAM PENN HIGHWAY MURRYSVLLE PA	32,532
		OSMOSE UTILITIES SVC INC		M & T BANK DEPT NO 560 BUFFALO NY	32,279
		XEROX CORP		PO BO 827598	31,291
		ELECTRIC POWER SYSTEMS		4227 CAMPBELLS RUN RD PITTSBURGH PA	30,890
		IPASS INC		3800 BRIDGE PARKWAY REDWOOD SHORES CA	28,975
		UTILITIES FORESTRY SERVICES INC		PO BOX 1027 CLEARFIELD PA	27,764
		RYDER INTEGRATED LOGISTICS INC		PO BOX 371264-M PITTSBURGH PA	27,002
	Miscellanous Under $25,000 (128)				343,147
	Total Contract Work				6,010,799
License and Maintenance Services
	Vendors Over $25,000				14,191,871
		ALSTOM ESCA CORP		PO BOX 2551 CAROL STREAM IL	1,681,414
		IBM CORP		2100 CORPORATE DR WEXFORD PA	1,547,725
		CIBER		1500 ARDMORE BLVD PITTSBURGH PA	863,965
		UTILITY ASSOCIATES INC		7 PIEDMONT CTR STE 300 ATLANTA GA	534,422
		COMPUTER ASSOC INTL INC		PO BOX 360355 PITTSBURGH PA	486,068
		EMC CORPORATION		176 SOUTH ST HOPKINTON MA	429,166
		TEK SYSTEMS INC		PO BOX 630853 BALTIMORE MD	397,231
		OMI INTERNATIONAL INC		1501 WOODFIELD RD WEST SCHAUMBURG IL	397,175
		A C COY CO		400 TECHNOLOGY DR CANONSBURG PA	360,890
		MAXIM GROUP		921 ELKRIDGE LANDING RD LINTHICUM MD	351,221
		ORACLE CORP		500 ORACLE PKWY REDWOOD SHORES CA	315,389
		CORPORATE SOFTWARE & TECH.		2 EDGEWATER DR NORWOOD MA	286,594
		INTEG ENTERPRISE CONSULTING		38 EAST PARK STREET NEWARK NJ	280,091
		COMSYS		PO BOX 601674 CHARLOTTE NC	274,820
		SCHLUMBERGER ELECTRICITY INC		2661 HUNTER POINT DR WEXFORD PA	269,027
		CORPSOFT INC		PO BOX 3514 BOSTON MA	238,441
		CONVERGENT GROUP CORP		DEPT 348 DENVER CO	227,960
		AFFILIATED COMPUTER SER INC		14820 CENTRAL AVE SE ALBEQUERQUE NM	220,766
		LODESTAR CORP		2 CORPORATION WAY PEABODY MA	199,404
		OPTIMUS SOLUTIONS LLC		DEPT 77-6899 CHICAGO IL	183,475
		KFORCE.COM		PO BOX 277997 ATLANTA GA	179,932
		POWERPLAN CONSULTANTS INC		1600 PARKWOOD CIRCLE ATLANTA GA	178,721
		ALLIN CONSULTING OF PA INC		381 MANSFIELD AVE PITTSBURGH PA	176,267

26D
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
OUTSIDE SERVICES EMPLOYEE
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 $100,000, 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.
FROM WHOM PURCHASED				AMOUNT
	DELPHI CONSULTING INC		2435 WEST PIKE ST HOUSTON PA	168,761
	RAPIDIGM INC		4400 CAMPBELLS RUN RD PITTSBURGH PA	165,304
	CANDLE CORP		PO BOX 92278 CHICAGO IL	147,767
	MAINLINE INFORMATION SYSTEMS		404 ONEIDA TRAIL MERCER PA	144,195
	LANTEK COMPUTER SERVICE		442 JANE ST CARNEGIE PA	142,001
	ALSTOM EAI CORP		PO BOX 88808 CHICAGO IL	140,902
	COMPUWARE CORPORATION		A/R DEPT FARMINGTON HILLS MI	127,076
	ITRON INC		PO BOX 200209 DALLAS TX	126,680
	STORAGE TECHNOLOGY CORP		PO BOX 95011 CHICAGO IL	106,557
	HYPERION SOLUTIONS CORP		PO BOX 39000 SAN FRANCISCO CA	102,225
	CGI		111 DUKE ST 3RD FL MONTREAL QC CANADA	101,507
	ITSPARC INC		214 RANDY LAND PITTSBURGH PA	98,679
	BEA SYSTEMS INC		7074 COLLECTION CENTER DR CHICAGO IL	95,963
	GE CAPITAL IT SOLUTIONS		4157 MOUNTAIN RD PMB 266 PASADENA MD	95,218
	BMC SOFTWARE DISTRIBUTION INC		PO BOX 201040 HOUSTON TX	94,199
	BENEFACTOR FUNDING CORP		PO BOX 6241 DENVER CO	89,680
	CINCOM		PO BOX 711103 CINCINNATI OH	86,437
	TERRY WATERBURY		6355 FAIRWAY VIEW COVE BARTLETT TN	84,842
	PHOENIX SOLUTIONS		PO BOX 642228 PITTSBURGH PA	82,283
	PRINCE SOFTWARE INC		3 PEARL CT ALLENDALE NJ	82,167
	LOGICAL INFORMATION MACHINES		120 W MADISON AVE STE 1200 CHICAGO IL	75,309
	DIGITAL INSPECTIONS		PO BOX 350020 BOSTON MA	74,580
	IRON MOUNTAIN		PO BOX 65017 CHARLOTTE NC	74,374
	ENTERPRISE CONSULTING PARTNERS		620 HERNDON PKWY STE 350 HERNDON VA	73,824
	AMERICAN MANAGEMENT SYSTEMS		300 CHAPEL RD MANCHESTER CT	69,833
	GDT INC		PO BOX 3506 BOSTON MA	67,750
	SOFTWARE SPECIALISTS INC		2000 CORPORATE DR SUITE 410 WEXFORD PA	66,987
	COGNOS CORPORATION		PENN CENTER WEST TWO PITTSBURGH PA	66,057
	MAXIMUS		998 OLD EAGLE SCHOOL RD STE 1215 WAYNE PA	61,480
	SECURE COMPUTING CORP		NW 7182 PO BOX 1450 MINNEAPOLIS MN	61,437
	PRIMAVERA SYSTEMS INC		50 MAIN ST SUITE 1000 WHITE PLAINS NY	51,409
	MAPFRAME CORP		4514 COLE AVE SUITE 400 DALLAS TX	49,254
	OBVIENT STRATEGIES INC		1844 BALDWIN WAY STE 100 MARIETTA	47,000
	BENTLEY SYSTEMS INC		PO BOX 828836 PHILADELPHIA PA	46,719
	EISTREAM VIEWSTAR INC		PO BOX 93104 LUBBOCK TX	45,707
	SYBARI SOFTWARE INC		353 LARKFIELD RD EAST NORTHPORT NY	45,425
	REDSIREN TECHNOLOGIES INC		100 FIRST AVE STE 900 PITTSBURGH PA	44,760
	SYBASE INC		77 S BEDFORD ST BURLINGTON MA	43,656
	JUMPSTART SERVICES INC		5646 36TH AVE SW SEATTLE WA	42,232
	EPICOR SOFTWARE CORP		DEPT 1547 LOS ANGELES CA	40,862
	MODIS SOLUTIONS		400 SOUTHPOINTE BLVD CANONSBURG PA	40,472
	HALOGEN SOFTWARE INC		17 AURIGA DR ONTARIO CANADA	36,750
	PITTSBURGH BUSINESS CONSULTANT		800 VINIAL ST SUITE B 402 PITTSBURGH PA	35,587
	ASPECT COMMUNICATIONS CORP		PO BOX 67000 DETROIT MI	35,372
	OMNIVEX CORPORATION		50A E CALDARI RD ONTARIO CANADA	34,689

26E
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
OUTSIDE SERVICES EMPLOYEE
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 $100,000, 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.
FROM WHOM PURCHASED					AMOUNT
		STERLING COMMERCE INC		PO BOX 73199 CHICAGO IL	32,322
		IQ INC		4530 WILLIAM PENN HIGHWAY MURRYSVILLE PA	32,036
		THE MATHWORKS INC		3 APPLE HILL DR NATICK MA	32,000
		INTEGRAL STRATEGIES INC		1121 BOYCE RD PITTSBURGH PA	31,582
		ALLEN SYSTEMS GROUP INC		135 S LASALLE ST DEPT 4304 CHICAGO IL	31,571
		GE SMALLWORLD (US) INC		PO BOX 643237 PITTSBURGH PA	31,289
		TELEGENIX INC		PO BOX 828529 PHILADELPHIA PA	31,044
		GEP SPATIAL INNOVATIONS INC		PO BOX 465 WASHINGTON PA	30,624
		DARWIN PARTNERS INC		PO BOX 845583 BOSTON MA	30,000
		RATIONAL SOFTWARE CORP		PO BOX 60000 SAN FRANCISCO CA	29,514
		SAS INSTITUTE INC		SAS CAMPUS DR CARY NC	29,044
		VERITAS SOFTWARE CORP		350 ELLIS ST MOUNTAIN VIEW CA	27,418
		ENOSERV		5630 S MEMORIAL STE 100 TULSA OK	27,325
		DATA PROCESSING SCIENCES CORP		TWO PARKWAY CENTER PITTSBURGH PA	26,103
		SERVICEWARE INC		333 ALLEGHENY AVE OAKMONT PA	25,623
		LEVI RAY AND SHOUP INC		2401 W MONROE ST SPRINGFIELD IL	25,244
		NEW ENERGY ASSOC LLC		PO BOX 116022 ATLANTA GA	25,000
	Miscellaneous - Under $25,000 (133)				800,186
		Total License and Maintenance Services			14,992,057
Other Services
	Vendors Over $25,000				25,836,308
		US SECURITY ASSOCIATES INC		PO BOX 931703 ATLANTA GA	1,183,820
		EPRI		PO BOX 217097 CHARLOTTE NC	949,987
		CIBER		1500 ARDMORE BLVD PITTSBURGH PA	949,027
		MELLON INVESTOR SERVICES LLC		PO BOX 360857 PITTSBURGH PA	898,453
		ORRICK HERRINGTON & SUTCLIFFE		666 FIFTH AVENUE NEW YORK NY	838,442
		SKIPPING STONE INC		29 GARRETT AVE ROSEMONT PA	821,292
		SULLIVAN & CROMWELL		125 BROAD ST NEW YORK NY	820,979
		ZOLFO COOPER LLC		292 MADISON AVE NEW YORK NY	800,000
		L J ASSOCIATES INC		200 PLEASANT UNITY RD STE 112 LATROBE PA	785,691
		SPOKANY & CO		5410 EDSON LN STE 310 ROCKVILLE MD	757,008
		LAZARD FRERES & CO LLC		30 ROCKEFELLER PLAZA 60TH FL NEW YORK NY	751,751
		LEHR CONSTRUCTION CORP		902 BROADWAY NEW YORK NY	676,443
		TEK SYSTEMS INC		PO BOX 630853 BALTIMORE MD	630,999
		MCKINSEY & CO INC		PO BOX 7247-7255 PHILADELPHIA PA	627,220
		ERNST & YOUNG LLP		PO BOX 640382 PITTSBURGH PA	605,000
		LP THEBAULT CO		PO BOX 10482 NEWARK NJ	482,986
		ALIGN COMMUNICATIONS INC		845 THIRD AVE 13TH FL NEW YORK NY	439,928
		BANK OF AMERICA - CHIC 96907		ERNST & YOUNG LLP PO BOX 96907 CHICAGO IL	439,834
		WALKER INFORMATION INC		PO BOX 663756 INDIANAPOLIS IN	436,324
		ENPORION		TWO HARBOUR PLACE TAMPA FL	432,617

26F
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
OUTSIDE SERVICES EMPLOYEE
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 $100,000, 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.
FROM WHOM PURCHASED				AMOUNT
	A C COY CO		400 TECHNOLOGY DR CANONSBURG PA	422,425
	INTERNATIONAL MANAGEMENT		15830 FOLTZ INDUSTRIAL PKWY CLEVELAND OH	410,000
	JOELE FRANK		140 EAST 45TH ST NEW YORK NY	408,826
	FTI CONSULTING INC (WIRES)		2001 ROSS AVE SUITE 1800 DALLAS TX	399,895
	DOLLAR ENERGY FUND INC		PO BOX 42329 PITTSBURGH PA	385,032
	ADP INVESTOR COMMUNICATION		PO BOX 23487 NEWARK NJH	358,116
	RISKON INC		15 CENTRAL AVE TENAFLY NJ	296,610
	DEWEY BALLANTINE LLP		1301 AVENUE OF THE AMERICAS NEW YORK NY	260,658
	PRICEWATERHOUSE COOPERS LLP		2400 ELEVEN PENN CTR PHILADELPHIA PA	260,112
	LIPPINCOTT & MARGULIES		499 PARK AVE NEW YORK NY	252,840
	DATICON SYSTEMS INC		45 KINGS HIGHWAY GALES FERRY CT	209,077
	COMSYS		PO BOX 601674 CHARLOTTE NC	198,910
	KFORCE.COM		PO BOX 277997 ATLANTA GA	194,898
	DELPHI CONSULTING INC		2435 WEST PIKE ST HOUSTON PA	192,398
	TECHNICAL SOLUTIONS INC		1817 GOLDEN MILE HIGHWAY PITTSBURGH PA	188,764
	ROBERT HALF MGMT RESOURCES		12400 COLLECTIONS CTR DR CHICAGO IL	184,709
	RAPIDIGM INC		4400 CAMPBELLS RUN RD PITTSBURGH PA	179,568
	TOWERS PERRIN INC		PO BOX 8500 S-6110 PHILADELPHIA PA	177,360
	BMC SOFTWARE DISTRIBUTION INC		PO BOX 201040 HOUSTON TX	162,286
	ONSITE COMPANIES		7 PARKWAY CTR SUITE 102 PITTSBURGH PA	158,429
	CRITT GRAHAM ASSOCIATES		2971 CLAIRMONT RD STE 850 ATLANTA GA	155,679
	PHOENIX SOLUTIONS		PO BOX 642228 PITTSBURGH PA	145,536
	EMC CORPORATION		176 SOUTH ST HOPKINTON MA	143,100
	AFFILIATED COMPUTER SVCS		14819 CENTRAL AVE SE ALBUQUERQUE NM	139,953
	909 THIRD CO LP		PO BOX 19426A NEWARK NJ	135,543
	HEIDRICK & STRUGGLES INC		135 S LASALLE DEPT 1133 CHICAGO IL	129,686
	RIPTECH INC		2800 EISENHOWER AVE ALEXANDRIA VA	121,908
	MANCINI-DUFFY INC		39 WEST 13TH ST NEW YORK NY	118,449
	DARWIN PARTNERS INC		PO BOX 845583 BOSTON MA	112,530
	EDISON ELECTRIC INSTITUTE		701 PENNSYLVANIA AVE NW WASHINGTON DC	109,165
	LEHIGH UNIVERSITY		117 ATLSS DRIVE BETHLEHEM PA	108,157
	PGH BUSINESS CONSULTANTS		800 VINIAL ST SUITE B402 PITTSBURGH PA	105,308
	RAY & BERNDTSON INC		DRAWER NO 980028 FT WORTH TX	104,217
	PARKER/HUNTER INC		600 GRANT ST 31ST FL PITTSBURGH PA	103,797
	ITSPARC INC		214 RANDY LANE PITTSBURGH PA	101,515
	IBM CORP		2100 CORPORATE DR WEXFORD PA	99,836
	BUCK CONSULTANTS INC		DEPT CH 14061 PALATINE IL	97,550
	KLETT ROONEY LIEBER & SCHORLING		ONE OXFORD CENTER PITTSBURGH PA	94,880
	INTERTECH SECURITY LLC		519 E MAIN ST STE 201 CARNEGIE PA	94,409
	TWR EXPRESS INC		38-30 CRESCENT ST LONG ISLAND CITY NY	93,293
	LAN TEK COMPUTER SERVICE		441 JANE ST CARNEGIE PA	93,189
	EMPIRE OFFICE INC		125 MAIDEN LN NEW YORK NY	93,002
	BEYOND INTERNATIONAL		PO BOX 652 NEW YORK NY	92,730
	CORNERSTONE FINANCIAL ADVISORS		THREE PARKWAY NORTH DEERFIELD IL	91,980
	BAKER BOTTS LLP		PO BOX 201626 HOUSTON TX	91,581
	SUNGGARD RECOVERY SERVICES LP		PO BOX 91233 CHICAGO IL	86,794

26G
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
OUTSIDE SERVICES EMPLOYEE
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 $100,000, 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.
FROM WHOM PURCHASED				AMOUNT
	LCG CONSULTING INC		4962 EL CAMINO REAL STE 112 LOS ALTOS CA	85,000
	SCHNADER HARRISON		1600 MARKET ST STE 3600 PHILADELPHIA PA	83,368
	IES/PETCO PLBG & HTG INC		15 WISCONSIN AVE NORWICH CT	81,174
	ALLIN CONSULTING OF PA INC		381 MANSFIELD AVE PITTSBURGH PA	80,525
	SKIPPING STONE		28 GARRETT AVE ROSEMONT PA	76,224
	BINGHAM DANA		150 FEDERAL ST BOSTON MA	75,000
	IBASE CONSULTING		PO BOX 6699 NEW YORK NY	69,300
	ACCENTURE LLP		11951 FREEDOM DR RESTON VA	69,042
	COMDISCO CONTINUITY SERV		PO BOX 91753 CHICAGO IL	66,377
	INTEGRAL STRATEGIES INC		1121 BOYCE RD PITTSBURGH PA	65,757
	EXECUTRAIN CORP OF PITTSBURGH		1000 OMEGA DR STE 1110 PITTSBURGH PA	65,525
	COMPUCOM SYSTEMS INC		PO BOX 8500-50970 PHILADELPHIA PA	65,402
	J D POWER AND ASSOCIATES		PO BOX 512778 LOS ANGELES CA	65,000
	NEW YORK STOCK EXCHANGE INC		GRAND CENTRAL STATION NEW YORK NY	64,580
	UNITED PARCEL SERVICE		3901 VERO ROAD BALTIMORE MD	64,446
	PLANALYTICE INC		1325 MORRIS DR STE 201 WAYNE PA	63,201
	OGILVY PUBLIC RELATIONS		PO BOX 8500-4106 PHILADELPHIA PA	59,108
	HEETER PRINTING CO INC		441 TECHNOLOGY DR SOUTHPOINTE PA	58,731
	BUSINESS WIRE		PO BOX 60270 LOS ANGELES CA	56,489
	JUSTIFACTS CREDENTIALS		8085 SALTSBURG RD STE 100 PITTSBURGH PA	56,152
	STRATEGIC DECISIONS GROUP		135 S LASALLE ST DEPT 4628 CHICAGO IL	54,843
	OGILVY PR WORLDWIDE		PO BOX 8500-4105 PHILADELPHIA PA	52,847
	ACORDIA EMPLOYERS SERVICE CORP		PO BOX 3389 CHARLESTON WV	51,601
	ENVIRONMENTAL CONSULTANTS INC		301 LAKESIDE DR SOUTHAMPTON PA	50,000
	POWERSPAN CORP		54 OLD BAY RD NEW DURHAM NH	50,000
	THE NEW MILLENNIUM GROUP		ST PETER PORT GUERNSEY	50,000
	ITRON INC		PO BOX 200209 DALLAS TX	49,884
	ACCOUNTEMPS		120 FIFTH AVENUE PL PITTSBURGH PA	49,230
	TGENERGY INC		PO BOX 158 BOONSBORO MD	49,128
	CRITT GRAHAM & ASSOCIATES		2970 CLAIRMONT RD STE 850 ATLANTA GA	48,971
	STANDARD & POORS		55 WATER ST NEW YORK NY	48,640
	MODIS SOLUTIONS		400 SOUTHPOINTE BLVD CANONSBURG PA	47,238
	REDSIREN TECH INC		100 FIRST AVE STE 900 PITTSBURGH PA	46,840
	URS		PO BOX 844130 DALLAS TX	46,702
	ENTERPRISE FOR EDUCATION		1316 3RD ST STE 103 SANTA MONICA CA	46,125
	AUS CONSULTANTS		155 GAITHER DR PO BOX 1050 MOORESTOWN NJ	45,864
	JANA O SHEFFER CONSULTANT		315 W 2ND ST FREDERICK MD	45,299
	COLUMBIA CONSULTING GROUP		20 S CHARLES ST 9TH FL BALTIMORE MD	43,884
	BROUDY PRINTING INC		221 AUBURN ST PITTSBURGH PA	43,249
	IRON MOUNTAIN/NUS		BO L996P PITTSBURGH PA	43,223
	ROCHESTER GAS AND ELECTRIC		89 EAST AVE ROCHESTER NY	42,712
	BEA SYSTEMS INC		7074 COLLECTION CENTER DR CHICAGO IL	42,050
	MCMANUS AND MILES		350 PARK AVE 23RD FL NEW YORK NY	41,050
	ROGER A BAUM		909 THIRD AVE NEW YORK NY	41,040
	HYPERION SOLUTIONS CORP		PO BOX 39000 SAN FRANCISCO CA	40,957

26H
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
OUTSIDE SERVICES EMPLOYEE
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 $100,000, 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.
FROM WHOM PURCHASED					AMOUNT
		JOHN S HEROLD INC		14 WESTPORT AVE NORWALK CT	40,727
		STOCK EQUIPMENT CO		16490 CHILLICOTHE RD CHAGRIN FALLS OH	40,051
		INVESTORCOM INC		800 THIRD AVE 27TH FL NEW YORK NY	39,208
		OATI INC		2300 BERKSHIRE LAND N MINNEAPOLIS MN	38,390
		BUILDING MAINTENANCE SVC LLC		PO BO 26032 NEW YORK NY	37,432
		UNIFI NETWORK INC		PO BOX 642861 PITTSBURGH PA	36,805
		COSENTINI ASSOC		2 PENNSYLVANIA PLAZA NEW YORK NY	36,610
		QUALITY SYSTEMS INC		258 E BENJAMIN FRANKLIN HWY BIRDSBORO PA	36,489
		GLOBAL INSIGHT (USA) INC		PO BOX 945937 ATLANTA GA	36,270
		META GROUP INC		208 HARBOR DR STAMFORD CT	36,213
		ALLEGHENY ENERGY		PAYMENT PROCESSING HAGERSTOWN MD	36,066
		MANAGEMENT CONCEPTS INC		8230 LEESBURG PIKE STE 800 VIENNA VA	35,748
		FITCH INC		PO BOX 26858 NEW YORK NY	35,000
		GARTNER INC		PO BOX 911319 DALLAS TX	32,728
		POWER WORLD CORP		1816 S OAK ST CHAMPAIGN IL	32,692
		WSI CORP		4 FEDERAL ST BILLERICA MA	31,265
		KNEPPER PRESS CORP		1120 ROBB HILL RD OAKDALE PA	30,868
		CREATIVE ADVISORS INC		141 E 42ND ST NEW YORK, NY	30,000
		JACKSON KELLY PLLC		PO BOX 11276 CHARLESTON WV	27,793
		R R DONNELLEY RECEIVABLES INC		PO BOX 905151 CHARLOTTE NC	26,779
		CORPORATE IMAGE INC		1801 THOMPSON AVE DES MOINES IA	26,609
		SOFTWARE SPECIALISTS INC		2000 CORPORATE DR SUITE 410 WEXFORD PA	26,543
		SYNERGY REAL ESTATE CORP		617 WILLIAM PENN PLACE PITTSBURGH PA	26,212
		MAIL-WELL ENVELOPE OHIO		PO BOX 9130 CHICAGO IL	25,532
	Miscellaneous - Under $25,000 (598)				2,172,112
		Total Other Services			28,008,421
		TOTAL OUTSIDE SERVICES			60,303,328
	These amounts summarize all outside services employed and may include charges to accounts
	throughout the Income Statement and Balance Sheet. Therefore, they can't be identified in
	total with any particular line on Schedule XV, but are distributed among various lines.

						27
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
	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
	Employee welfare payments				8,073,446
	Corporate pension plan				1,796,250
	Long-term disability				2,078,803
	Employee moving expense				1,788,107
	Group medical				28,880,484
	Group life insurance				3,039,913
	Savings plan expense				8,686,324
	Employee education assistance				373,303
	Group dental				2,458,987
	Postretirement benefits other than pensions				15,593,000
	Workforce Reduction				107,607,610
	Benefits allocated functionally				(3,124,412)
	Health & Dependent care spending plan				378,421
	Miscellaneous				62
				TOTAL	177,630,298

						28
ANNUAL REPORT OF         Allegheny Energy Service Corporation
For the Year Ended         December 31, 2002
	GENERAL ADVERTISING EXPENSES
	ACCOUNT 930.1
INSTRUCTIONS:		Provide a listing of the amount included in Account930.1, "General Advertising Expenses", classifying
		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
		General Advertising:
					ALLEGANY MARKETING CO	3,994
					ATLANTIC WOOD INDUSTRIES	6,425
					DRAKE ADVERTISING INC	61,968
					FILMET	3,491
					FREDERICK KEYS	11,722
					HAGERSTOWN SUNS	8,800
					HBP	42,704
					HEETER PRINTING CO INC	93,709
					INTERSPACE SERVICES INC	5,408
					L J ASSOCIATES INC	10,837
					MOORE SYNDICATION INC	3,000
					OGILVY PUBLIC RELATIONS	85,847
					PAT HART MARKETING & COMMUNICATION	134,765
					PITTSBURGH PIRATES	120,000
					POSTMASTER GREENSBURG POST OFFICE	18,002
					PROCESS REPRODUCTIONS INC	3,700
					PSI SIGNS	3,527
					QUORUM BROADCASTING OF MD LLC	16,400
					SPOKANY & CO	858,999
					THE BARISH GROUP	3,900
					U S BANK	3,607
					WESTMORELAND SYMPHONY ORCHESTRA	3,150
					Various	253,223
						1,757,178
		Newspaper Advertising:
					BECKLEY NEWSPAPERS	4,867
					HERALD-STAR	3,379
					HOT JOBS.COM	14,000
					THE HERALD-STANDARD	5,158
					THE STATE JOURNAL	15,985
					TRIBUNE-REVIEW	32,545
					Various	22,992
						98,926
		Publications			Various	6,013
						6,013
		Radio/TV Advertising:			WJLS RADIO	13,655
					WSAZ-TV 3	13,700
					WTAP-TV	12,750
					WV PUBLIC BROADCASTING FNDTN	3,650
					FOX SPORTS NET PITTSBURGH	7,000
					WBOY TV INC	14,000
					Various	991
						65,746
				TOTAL		1,927,863

					29
ANNUAL REPORT OF         Allegheny Energy Service Corporation
For the Year Ended        December 31, 2002
	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. 441(b)(2)) shall be separately
		classified.
			DESCRIPTION		AMOUNT
	Financial expenses				16,777
	Directors fees and expenses				39,424
	Corporate membership dues				5,981,965
	Miscellaneous				221,533
	Capital Contributions				95,750
	Professional Fees				426,461
				TOTAL	6,781,910

						30
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
	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
	Office Space and Buildings				24,033,883
	Computer Equipment				11,530,071
	Software				241
	Communication Equipment				1,656,128
	Furniture and Equipment				599,293
	Office Space Affiliated				7,167,162
	Office furniture and equipment affiliated				12,660,426
	Miscellaneous				433,872
				TOTAL	58,081,076

						31
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended     December 31, 2002
	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				808,874
		Franchise tax				3,031
		State gross premium & license				152,197
		General corporation tax				7,510
		State Sales tax				596,722
		Other				14,744
		Total Other than U. S. Government Taxes				1,583,078
	(2)	U.S. Government Taxes:
		FICA				27,761,511
		Federal unemployment				342,418
		Total U. S. Government Taxes				28,103,929
					TOTAL	29,687,007

					32
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended     December 31, 2002
	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
	ACCIDENT ELEMENTARY SCHOOL			CONTRIBUTION	30,000
	ALLEGANY COLLEGE OF MARYLAND			CONTRIBUTION	5,000
	ALLEGHENY CONFERENCE ON			CONTRIBUTION	3,000
	APPLE BLOSSOM FESTIVAL			CONTRIBUTION	5,000
	BEL AIR ELEMENTARY SCHOOL			CONTRIBUTION	30,000
	BRADLEY ELEMENTARY SCHOOL			CONTRIBUTION	30,000
	BUTLER COUNTY COMMUNITY COLLEGE			CAPITAL CONTRIBUTION	5,000
	C&O CANALFEST			CONTRIBUTION	5,000
	CAMBRIDGE ENERGY RESEARCH			MEMBERSHIP	23,000
	CAMERON CO CONSERVATION DISTRICT			CONTRIBUTION	5,000
	CENTER FOR THE PERFORMING ARTS			CONTRIBUTION	3,000
	CHARLESTON CATHOLIC HIGH SCHOOL			CONTRIBUTION	30,000
	CHARLESTON STERNWHEEL REGATTA			CONTRIBUTION	5,000
	CHILDREN'S HOSPITAL OF PITTSBURGH			CONTRIBUTION	7,500
	CITY OF HAGERSTOWN			CONTRIBUTION	3,000
	CLARION CO YMCA			CAPITAL CONTRIBUTION	5,000
	CLARION-LIMESTONE HIGH SCHOOL			CONTRIBUTION	30,000
	CONTEMPORARY AMERICAN THEATER			CONTRIBUTION	5,000
	DELAPLAINE VISUAL ARTS ED CENTER			CONTRIBUTION	5,000
	DOLLAR ENERGY FUND INC			CONTRIBUTION	180,000
	FAIRMONT STATE COLLEGE			CONTRIBUTION	5,000
	FAMILY MATTERS			CONTRIBUTION	5,000
	FOOD RESOURCES INC			CONTRIBUTION	3,000
	FRIENDS OF THE CHEAT			SPONSORSHIP	5,000
	FRIENDS OF THE POTOMAC			SPONSORSHIP	10,000
	FROSTBURG STATE UNIVERSITY			CAPITAL CONTRIBUTION	5,000
	GREENSBURG AREA CULTURAL COUNCIL			CONTRIBUTION	5,000
	GREENWORKS OF PENNSYLVANIA			SPONSORSHIP	5,000
	HOOD COLLEGE			CONTRIBUTION	3,000
	INDEPENDENT COLLEGE FUND OF MD			CONTRIBUTION	10,000
	KIDS VOTING OF MARYLAND			CONTRIBUTION	4,500
	KINGWOOD ELEMENTARY SCHOOL			CONTRIBUTION	30,000
	LIFEBRIDGE			CONTRIBUTION	4,946
	LORD FAIRFAX COMMUNITY COLLEGE			CONTRIBUTION	4,000
	MARSH INSTITUTE			CONTRIBUTION	6,500
	MIDWEST INDEPENDENT TRANSMISSION			CONTRIBUTION	15,000
	NATIONAL ACTION COUNCIL FOR			CONTRIBUTION	3,000
	NORWIN HIGH SCHOOL			CONTRIBUTION	30,000
	RIVESVILLE ELEMENTARY			CONTRIBUTION	30,000

					32A
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended     December 31, 2002
	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
	THE NATURE CONSERVANCY			CONTRIBUTION	5,000
	UNITED WAY OF ALLEGHENY COUNTY			CONTRIBUTION	12,642
	UNITED WAY OF BUTLER COUNTY			CONTRIBUTION	4,812
	UNITED WAY OF FRANKLIN COUNTY			CONTRIBUTION	3,246
	UNITED WAY OF FREDERICK COUNTY			CONTRIBUTION	6,178
	UNITED WAY OF GREENE COUNTY			CONTRIBUTION	6,963
	UNITED WAY OF HARRISON COUNTY			CONTRIBUTION	15,291
	UNITED WAY OF MARION COUNTY			CONTRIBUTION	31,571
	UNITED WAY OF MON VALLEY			CONTRIBUTION	3,068
	UNITED WAY OF MONONGALIA &			CONTRIBUTION	20,735
	UNITED WAY OF NORTHERN			CONTRIBUTION	4,974
	UNITED WAY OF RANDOLPH COUNTY			CONTRIBUTION	3,210
	UNITED WAY OF SOUTH FAYETTE INC			CONTRIBUTION	4,851
	UNITED WAY OF WASHINGTON COUNTY			CONTRIBUTION	4,977
	UNITED WAY OF WASHINGTON COUNTY			CONTRIBUTION	45,132
	UNITED WAY OF WESTMORELAND COUNTY			CONTRIBUTION	215,581
	UNIVERSITY OF PITTSBURGH			CAPTIAL CONTRIBUTION	5,000
	URBANA HIGH SCHOOL			CONTRIBUTION	30,000
	W VA ENVIROTHON ADVISORY COUNCIL			CONTRIBUTION	3,500
	WASHINGTON CO MUSEUM OF FINE ART			CONTRIBUTION	10,000
	WASHINGTON CO PLANNING COMM			CONTRIBUTION	5,000
	WEST VIRGINIA COAL MINERS STATUE			CONTRIBUTION	5,000
	WEST VIRGINIA PUBLIC THEATRE			CONTRIBUTION	9,000
	WEST VIRGINIA SYMPHONY ORCHESTRA			CONTRIBUTION	6,000
	WEST VIRGINIA UNIVERSITY			CONTRIBUTION	3,500
	WESTERN PA CONSERVANCY			CONTRIBUTION	4,500
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV INDEPENDENT COLLEGES & UNIV			CONTRIBUTION	4,000
	WV ROUNDTABLE INC			CONTRIBUTION	10,000
	Y-ME OF THE CUMBERLAND VALLEY			CONTRIBUTION	5,000
	ROUTE 40 SCHOOL			CONTRIBUTION	30,000
	SETON HILL COLLEGE			CAPITAL CONTRIBUTION	5,000

					32B
ANNUAL REPORT OF    Allegheny Energy Service Corporation
For the Year Ended     December 31, 2002
	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
	TEAM PENNSYLVANIA FOUNDATION			SPONSORSHIP	5,000
	THE EDUCATION ALLIANCE			CONTRIBUTION	11,000
	Miscellaneous (369)				187,693
					1,357,870

					33
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
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
	None
				TOTAL	0

			34
ANNUAL REPORT OF Allegheny Energy Service Corporation
For the Year Ended December 31, 2002
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.
	None other than those specifically noted on various pages.

35
ANNUAL REPORT OF Allegheny Energy Service Corporation
ORGANIZATION CHART
ALLEGHENY ENERGY ORGANIZATIONAL STRUCTURE AS OF 12/31/2002
CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER
	PRESIDENT (ALLEGHENY POWER)
		EXECUTIVE, VICE PRESIDENT, AP
			DIRECTOR, FIBER & DATA
			DIRECTOR, SAFETY, ENVIRONMENT, BUILDING SVCS & TRAINING
			DIRECTOR, ENEGY SERVICES
			DIRECTOR, PROJECT DEVELOPMENT
			VICE PRESIDENT
			VICE PRESIDENT
		VICE PRESIDENT
			DIRECTOR, CUSTOMER SERVICE
			DIRECTOR, OPERATIONS
			DIRECTOR, OPERATIONS
			DIRECTOR, SALES AND MARKETING
			SENIOR CONSULTANT
		VICE PRESIDENT
			DIRECTOR, OPERATIONS
			DIRECTOR, OPERATIONS
			DIRECTOR, OPERATIONS
			DIRECTOR, SUPPORT SERVICES
			DIRECTOR, T & D SERVICES
		VICE PRESIDENT
			DIRECTOR, ASSET MANAGEMENT
			DIRECTOR, ENERGY PROCUREMENT
			DIRECTOR, SYSTEM OPERATIONS

35A
ANNUAL REPORT OF Allegheny Energy Service Corporation
ORGANIZATION CHART
	VICE PRESIDENT, ADMINISTRATION
		DIRECTOR, INFORMATION SERVICES
		DIRECTOR, PROCUREMENT
		DIRECTOR, SYSTEM SECURITY
		DIRECTOR, COMPENSATION & BENEFITS
		DIRECTOR, EMPLOYEE RELATIONS & ORGANIZATIONAL DEVELOPMENT
		EXECUTIVE STAFF ASSISTANT
		GM, AP BUSINESS SUPPORT (a)
		DIRECTOR, HUMAN RESOURCES (SUPPLY) (b)
		MANAGER, COMMUNICATIONS (a)
	VICE PRESIDENT, CORPORATE COMMUNICATIONS
		GM, CORPORATE COMMUNICATIONS
		DIRECTOR, COMMUNICATIONS (AP) (c)
		MANAGER, COMMUNICATIONS (SUPPLY) (d)
	VICE PRESIDENT, EXTERNAL AFFAIRS
		DIRECTOR, STATE AFFAIRS
		EXECUTIVE DIRECTOR, POLICY & PROGRAMS
		DIRECTOR, STATE AFFAIRS
		DIRECTOR, STATE AFFAIRS
		DIRECTOR, STATE AFFAIRS
		VICE PRESIDENT, STATE AFFAIRS
	VICE PRESIDENT & GENERAL COUNSEL
		DEPUTY GENERAL COUNSEL, CORPORATE
		DEPUTY, GENERAL COUNSEL, SUPPLY
		DEPUTY GENERAL COUNSEL, DELIVERY
		CORPORATE SECRETARY

35B
ANNUAL REPORT OF Allegheny Energy Service Corporation
ORGANIZATION CHART
		VICE PRESIDENT, CORPORATE DEVELOPMENT
			DIRECTOR, PROJECT ANALYSIS
	SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
		VICE PRESIDENT AND TREASURER
			DIRECTOR, CASH MANAGEMENT
			DIRECTOR, CORPORATE FINANCIAL MANAGEMENT
			DIRECTOR, FINANCIAL MANAGEMENT-SUPPLY
			DIRECTOR, REGULATION AND RATES
		VICE PRESIDENT AND CONTROLLER
			DIRECTOR, FINANCIAL PROCESSING
			ASSISTANT CONTROLLER
			BUSINESS CONTROLLER-SUPPLY (e)
			BUSINESS CONTROLLER DELV (f)
			DIRECTOR, AUDIT SERVICES
		CHIEF RISK OFFICER
			DIRECTOR, RISK MANAGEMENT
		DIRECTOR, TAX
			MANAGER, INCOME TAXES & TAX PLANNING
			MANAGER, TAX ACCOUNTING & SPECIAL PROJECT
	PRESIDENT, ALLEGHENY ENERGY SUPPLY CO. LLC
		VICE PRESIDENT, PRODUCTION
			DIRECTOR, FUELS AND DISPATCH
			EXECUTIVE DIRECTOR, GAS TURBINE STATIONS

35C
ANNUAL REPORT OF Allegheny Energy Service Corporation
ORGANIZATION CHART
	PRESIDENT, ALLEGHENY ENERGY SUPPLY CO. LLC continued:
			EXECUTIVE DIRECTOR, COAL & HYDRO STATIONS
				REGIONAL DIRECTOR
				REGIONAL DIRECTOR
				REGIONAL DIRECTOR
				REGIONAL DIRECTOR
				REGIONAL DIRECTOR
				REGIONAL DIRECTOR
				REGIONAL DIRECTOR
				DIRECTOR, ADMINISTRATION
		VICE PRESIDENT, PRODUCTION SERVICES
				DIRECTOR, NEW GENERATION PROJECTS
				DIRECTOR, ENVIRONMENTAL MANAGEMENT
				DIRECTOR, DEVELOPMENT ENG & TECH SUPPORT
				DIRECTOR, PROJECT SERVICES
				DIRECTOR, CONTROL AREA
		VICE PRESIDENT, ASSET OPTIMIZATION & HEDGING
				DIRECTOR, ASSET OPTIMIZATION
				DIRECTOR, RESEARCH, STRATEGIES & MODELING
				GENERAL MANAGER, TRANSACTION SUPPORT
(a)     Reports directly to Executive, VP, AP
(b)     Reports directly to President Allegheny Energy Supply Co LLC
(c)     Reports directly to Executive VP, AP
(d)     Reports directly to President Allegheny Energy Supply Co LLC
(e)      Reports directly to Executive, VP, AP
(f)      Reports directly to President, Allegheny Energy Supply Co LLC

36

Annual Report of ALLEGHENY ENERGY SERVICE CORPORATION

2002 Methods of Allocation

                    Costs of Rendering Services:

           A.     The costs of rendering services by Allegheny Energy Service Corporation (AESC) include
                    all costs of doing business including interest on debt but excluding a return for the use of
                    AESC's initial equity capital of $50,000.

           B.     1.    AESC maintains a separate record of the expenses for 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.

                    2.     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 insurance, pensions,
                            post-retirement benefits (other than pension), medical, dental, and other welfare
                            expenses), expenses of training and development of AESC employees, rents, dues and
                            memberships, and all other expenses attributable to, or necessary to the operation of,
                            the department.

                    3.     Departmental Expenses do not include:

                            a.     Those incremental out-of-pocket expenses that are incurred for the direct benefit
                                    and convenience of a particular Client Company or a group of Client Companies
                                    and are to be charged solely to such Client Company or group of Client
                                    Companies, and;

                            b.     AESC Overhead Expenses. Such expenses include, among others, costs of
                                    maintaining the corporate existence of AESC, taxes, and other expenses, such as
                                    outside auditing and legal fees.

           C.       1.     Employees in each department are divided into two groups:

                            a.     Employees directly engaged in rendering services to Client Companies or to
                                    AESC.

                            b.     Secretaries, clerical, office service and other employees, who are not engaged
                                    directly in rendering services to Client Companies or to AESC.

36A

                  2.     Employees directly engaged in rendering services to Client Companies or to AESC                           maintain records showing time employed in rendering services, nature of services                           rendered, and identity of companies or groups of companies served. Support staff                           expenses are billed based on the billings of employees directly engaged in rendering                           services for the respective department.

           D.      Key Allocation Factors

                  1.      Delivery and Supply Allocation Factor (60, OPERCO)

                            a.     Departmental and incremental out-of-pocket expenses expended for all energy                                    sales companies are allocated to each company in the group based on the ratio of                                    the total allocation factor of such company.

                            b.      The allocation factor applicable to these companies during any year is the
                                   average of the quotients of:

                                       (1)    The total expenses of such businesses (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 at the close of each of the three years
                                                immediately preceding the current year divided by the total of such
                                                expenses of all businesses for the same period;

                                       (2)    The total number of kWhs sold by such business to customers (excluding
                                                other related businesses) at the close of each of the three years
                                                immediately preceding the current year divided by the total number of
                                                kWhs so sold by all businesses during the three years;

                                       (3)    The sum of the total amounts of electric plant-in-service on the
                                                books of such businesses (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
                                                businesses at the close of each of such three years; and

                                       (4)    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.

36B

                  2.     All System Companies Allocation Factor (ALLCO/ALLCO_MG)

                            a.      Departmental and incremental out-of-pocket expenses expended for a group
                                    which includes all AE system companies (including the Supply subsidiary and
                                    excluding AESC) are allocated among the Client Companies on the basis of the
                                    average of the prior three years' direct costs charged by AESC to each Client                                     Company.

                            b.     With the acquisition of Mountaineer Gas, additional billing allocators were
                                    required. Billing allocator 5G charges the System Operating Companies,
                                    Allegheny Energy, Inc., Allegheny Ventures, plus a portion to Mountaineer Gas.

                  3.     Power Station Allocation Factor (Series 65-XXXX billing allocator)

                            a.     The allocation factor applicable to AESC employees who provide services to
                                    Client Companies' power stations (including the Supply subsidiary) during any
                                    year is based upon the generating capacity of each power station divided by the
                                    System total generating capacity.

                  4.     Delivery Allocation Factor (Series 56, AP_3CO/5A-XXXX billing allocator, AP_4CO)

                            a.     This factor is similar to Delivery and Supply allocation factor described in 1
                                    above. The difference is that the allocations will be based on Delivery costs,
                                    KWh sales, and electric plant only. This factor will be used to allocate
                                    system-wide Delivery initiatives to each of the Delivery businesses.

                            b.     With the acquisition of Mountaineer Gas, additional billing allocators were
                                    required. Billing allocator 56 (AP_3CO) charges the three Delivery Companies.
                                    Billing allocator 5A (AP_4CO) charges the three Delivery Companies, plus a
                                    portion to Mountaineer Gas.

                  5.     Direct Assignment Allocation Factor

                            a.     This applies to other allocations that are 100% assigned to a specific company or
                                    station.

           E.     The total cost of a particular service rendered to a specified Client Company is the sum of
                   the Departmental Expenses, Overhead Expenses, cost of services rendered to AESC, and
                   incremental Out-of-Pocket Expenses, which are applicable to such Company in respect of
                   such service.

           F.     The total cost of a particular service rendered to a specific group of Client Companies is the
                   sum of the amounts of the Departmental Expenses, Overhead Expenses, costs of services
                   rendered to AESC, and incremental Out-of-Pocket Expenses which are applicable to such
                   group of companies in respect of such service.

36C

           G.      Whenever the charges to individual Customer Companies for services rendered are based                      upon estimates of AESC'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.

                    The general SEC policy on variations from approved methods is that if a change in the
                    allocation causes over $50,000 or 5% change in the cost that would be charged to a company,
                    and then the allocation method must be brought to the SEC via a 60-day letter for approval.

37

ANNUAL REPORT OF Allegheny Energy Service Corporation

ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED

         None.

38

ANNUAL REPORT OF Allegheny Energy 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 Energy Service Corporation
                                                                           (Name of Reporting Company)

                                                                     By: /s/ THOMAS R. GARDNER
                                                                            (Signature of Signing Officer)

                                                                     Thomas R. Gardner, VP & Controller              
                                                                       (Printed Name and Title of Signing Officer)



Date:   April 1, 2004