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                                                        DA 96-953


                            Before the
                FEDERAL COMMUNICATIONS COMMISSION
                     Washington, D.C.  20554



In the Matter of                             )
                                        )
Application of Allegheny Communications           )
Connect, Inc. for Determination of Exempt         )
Telecommunications Company Status            )    File No. ETC-96-11
under Section 34 of the Public Utility            )
Holding Company Act of 1935, as added by          )
Section 103 of the Telecommunications Act of 1996 )    


                              ORDER


     Adopted:  June 14, 1996                 Released:  June 14, 1996


By the General Counsel:


     1.   On April 18, 1996, Allegheny Communications Connect, Inc. ("ACC") filed an
application with the Commission for a determination of "exempt telecommunication company"
("ETC") status pursuant to section 34(a)(1) of the Public Utility Holding Company Act of 1935
("PUHCA"), as added by section 103 of the Telecommunications Act of 1996.  ACC's
application was placed on public notice for comment on the adequacy and accuracy of the
application on April 17, 1996.  Allegheny Communications Connect, Inc. Public Notice DA No.
96-611 (OGC Released April 19, 1996).  No parties filed any comments.  As explained below,
ACC satisfies the statutory criteria to merit a positive determination of ETC status and its
application is therefore granted. 

     2.   ACC states that it is a Delaware corporation that intends to become a direct or
indirect subsidiary of Allegheny Power System, Inc., a registered public utility holding company
under PUHCA.  ACC states that it will be engaged, directly or indirectly, through one or more
"affiliates" (as defined in PUHCA section 2(a)(11)(B)), and exclusively in the business of
providing telecommunications services, information services, other services or products subject
to the jurisdiction of the Commission, and/or products or services that are related or incidental to
the provision of such products or services within the meaning of PUHCA section 34(a)(1).

     3.   Specifically, ACC represents that it will offer services to personal
communications services ("PCS") license holders for the establishment and maintenance of their
PCS networks.  According to ACC, these services will include location and construction of
antenna facilities, as well as maintenance and management of PCS sites for PCS license holders. 
ACC also represents that it may also offer services for the development, design, and construction
of fiber optic systems for use in providing utility communications services and demand-side
management services to Allegheny Power's public utility companies, their affiliates and their
customers.  Moreover, ACC represents that it may provide long-haul fiber capacity on a
wholesale basis to non-affiliated companies, who may then resell such capacity to third parties. 
In addition, ACC states that it may offer mobile radio communications services to Allegheny
Power's public utility companies and affiliates, their customers and non-affiliated third parties to
maintain the reliability of Allegheny's system and to provide other energy services, remote meter
reading, real-time pricing, load control and coordination, transmission of data between service
vehicles and home offices, and other similar uses.  Finally, ACC states that it may provide
energy management and other related services which would permit Allegheny's customers to
save on their monthly utility bills.

     4.   Based upon the representations contained in ACC's application, it is determined
that ACC is an exempt telecommunications company as that term is defined in PUHCA section
34(a)(1), as amended.

     5.   Accordingly, IT IS ORDERED that the application of ACC IS GRANTED.  IT IS
FURTHER ORDERED that the Securities and Exchange Commission SHALL BE NOTIFIED
of this determination.


                         FEDERAL COMMUNICATIONS COMMISSION




                         William E. Kennard
                         General Counsel