COMMONWEALTH OF PENNSYLVANIA
PENNSYLVANIA PUBLIC UTILITY COMMISSION
P.O. BOX 3265, HARRISBURG, PA 17105-3266
FEBRUARY 13, 1997 REFER TO OUR FILE
G-00960525
XXXX X. XXXXXX ESQUIRE
WEST PENN POWER COMPANY
000 XXXXX XXXX XXXXX
XXXXXXXXXX XX 00000-0000
Affiliated Interest Agreement between
West Penn Power Company and
Allegheny Power Service Corporation
To Whom It May Concern:
This is to advise you that an Opinion and Order has been adopted by
the Commission in Public Meeting on February 13, 1997, in the above
entitled proceeding.
An Opinion and Order has been enclosed for your records.
Very truly yours,
/s/
Xxxx X. Xxxxxx, Secretary
smk
Encls.
Cert.Mail
PENNSYLVANIA
PUBLIC UTILITY COMMISSION
Harrisburg, PA 17105-3265
Public Meeting held February 13, 1997
Commissioners Present:
Xxxx X. Xxxxx, Chairman
Xxxx Xxxxxxxxxxx, Vice Chairman
Xxxx Xxxxxx, Statement attached
Xxxxx X. Xxxxx
Xxxxxx X. Xxxxx
Docket No.
Affiliated Interest Agreement Between WestG-00960525
Penn Power Company, Allegheny Power Service
Corporation and Other Operating Affiliates
OPINION AND ORDER
BY THE COMMISSION:
On November 8, 1996, an Affiliated Interest Agreement
("Agreement") between West Penn Power Company ("West Penn"), Allegheny
Power Service Corporation ("APSC") and its affiliates was filed to become
effective on December 8, 1996. On December 5, 1996, the Commission
extended the period for consideration of this Agreement to February 14,
1997.
This is an Agreement that amends a current affiliated
interest agreement between West Penn and APSC. This Agreement also seeks
approval of a new service agreement between West Penn and its other
operating affiliates (Monongahela Power Company and Potomac Edison).
The original Service Agreement was approved by the Commission
at Docket No. G-00930363. The existing Agreement addresses the
arrangement where APSC provides accounting, reporting and other
management services to the operating companies. This Agreement is being
revised in order to define new responsibilities and services which will
be provided by APSC to West Penn and its affiliates under Allegheny Power
System's reorganization.
In addition to revising the existing Service Agreement, this
Agreement seeks approval of a new Service Agreement among West Penn,
Monongahela and Potomac Edison. This is an Agreement whereby each
Company offers to furnish to any of the other affiliated companies a
variety of services including office services, operations services,
customer service center services and mail payment services.
Any service provided by one Company to another will be
provided for at cost. Cost will be calculated as the sum of facilities
charges, working capital charges, all labor charges, payroll overheads,
out-of-pocket expenses, and any overheads associated with out-of-pocket
expenses.
This Agreement enables centralized services to be provided
for activities that are deemed to be more efficient when centralized.
Customers will benefit as a result of the economies derived by these
centralizations.
The subject Agreement is filed in accordance with the
requirements of Section 2102(b) of the Public Utility Code, 66 Pa. C.S.
2102(b).
We have examined the Agreement and have determined that it
appears to be reasonable and consistent with the public interest;
however, approval of the Agreement does not preclude us from
investigating, during any formal proceeding, the reasonableness of
charges incurred under the Agreement;
THEREFORE,
IT IS ORDERED:
1. That the Affiliated Interest Agreement between West Penn
Power Company, Allegheny Power Service Corporation and other Operating
Affiliates filed on November 8, 1996, be and hereby is, approved.
2. That acceptance does not preclude the Commission from
investigating during any formal proceeding the reasonableness of charges
incurred under the Agreement.
3. That this Docket No. G-00960525 be marked closed.
BY THE COMMISSION
/s/
Xxxx X. Xxxxxx,
Secretary
(SEAL)
ORDER ADOPTED: February 13, 1997
ORDER ENTERED: FEB 13 1997
PENNSYLVANIA PUBLIC UTILITY COMMISSION
Harrisburg, Pennsylvania
AFFILIATED INTEREST AGREEMENT PUBLIC MEETING-
BETWEEN WEST PENN POWER COMPANY, FEBRUARY 13, 1997
ALLEGHENY POWER SERVICE CORPORATION FEB-97-FUS-1030*
AND ITS AFFILIATES DOCKET NO.
G-00960525
STATEMENT OF COMMISSIONER XXXX XXXXXX
The subject affiliated interest agreement is a continuation
of an agreement which has been in effect since 1993 in which West Penn
and the other APS companies perform certain regulated utility services
for each other. Since 1993, the APS companies have been able to operate
more efficiently by consolidating and avoiding duplication of these
services. The modifications at this time expand the services slightly
and reflect recent corporate reorganization, but do not change the basic
scope or nature of the consolidated services. Approval of these
efficiencies has been, and continues to be, in the public interest.
Since 1993, West Penn and APS have demonstrated actual
experience with specific services. These agreements do not raise any
issues concerning the interaction of West Penn and unregulated
competitive market services.
/s/
DATED XXXX XXXXXX, COMMISSIONER
