AEP INVESTMENTS, INC.
                       QUARTERLY REPORT PER REQUIREMENTS
                   OF HOLDING COMPANY ACT RELEASE NO. 25667
                     FOR THE QUARTER ENDED MARCH 31, 1995


                                   CONTENTS

                                                                          Page

Statement of Income                                                         1

Balance Sheets                                                              2

Statement of Cash Flows                                                     3

Notes to Financial Statements                                               4



                              AEP INVESTMENTS, INC.
                             STATEMENT OF INCOME 
                       THREE MONTHS ENDED MARCH 31, 1995
                                  (UNAUDITED)



                                                              (in thousands)

REVENUES                                                            $ - 

EXPENSES:
  Affiliated Services                                                 23
  Ohio Corporate Franchise Taxes                                       7
  Other                                                                1

    Total Expenses                                                    31

LOSS BEFORE FEDERAL INCOME TAXES                                     (31)

FEDERAL INCOME TAX CREDIT                                            (11)

NET LOSS                                                            $(20)

                                                           

                        STATEMENT OF RETAINED EARNINGS
                       THREE MONTHS ENDED MARCH 31, 1995
                                  (UNAUDITED)



                                                              (in thousands)

BALANCE AT BEGINNING OF PERIOD*                                   $(8,210)

NET LOSS                                                              (20)

BALANCE AT END OF PERIOD*                                         $(8,230)

*Parentheses Denote Accumulated Deficit.

The common stock of the Company is wholly owned
by American Electric Power Company, Inc.

See Notes to Financial Statements.


                             AEP INVESTMENTS, INC.
                                 BALANCE SHEET
                                MARCH 31, 1995
                                  (UNAUDITED)



                                                              (in thousands)

ASSETS

INVESTMENTS - Intersource Technologies, Inc.                      $11,500

CURRENT ASSETS:
  Cash                                                                 35
  Notes Receivable - Intersource Technologies, Inc.                 1,000
  Accounts Receivable                                                  40
  Accrued Tax Benefit                                                  13
  Prepayments                                                          12

    TOTAL CURRENT ASSETS                                            1,100

DEFERRED FEDERAL INCOME TAXES                                       4,389

DEFERRED DEBITS                                                       234

      TOTAL ASSETS                                                $17,223


CAPITALIZATION AND LIABILITIES

Paid-in Capital including 100 shares outstanding
  of $1 par value common stock                                    $12,910
Accumulated Deficit                                                (8,230)

  TOTAL CAPITALIZATION                                              4,680

CURRENT LIABILITIES - Accounts Payable, Affiliated Company              3

PROVISION FOR LOSS - InterSource Technologies, Inc.                12,540

  TOTAL CAPITALIZATION AND LIABILITIES                            $17,223

See Notes to Financial Statements.



                              AEP INVESTMENTS, INC.
                            STATEMENT OF CASH FLOWS
                       THREE MONTHS ENDED MARCH 31, 1995
                                  (UNAUDITED)


                                                              (in thousands)

OPERATING ACTIVITIES:

  Net Loss                                                          $ (20)

  Changes in Certain Current Assets and Liabilities:
      Accounts Payable                                                (22)
      Prepayments                                                     (12)
      Taxes Accrued                                                   (11)
      Deferred Debits                                                (234)

  Net Cash Flows Used For Operating Activities                       (299)

INVESTING ACTIVITIES                                                  -

FINANCING ACTIVITIES - Capital Contributions
  from Parent Company                                                 300

NET INCREASE IN CASH                                                    1

CASH AT BEGINNING OF PERIOD                                            34

CASH AT END OF PERIOD                                               $  35


See Notes to Financial Statements.



                              AEP INVESTMENTS, INC.
                         NOTES TO FINANCIAL STATEMENTS
                                MARCH 31, 1995        
                                  (UNAUDITED)


PROVISION FOR LOSS

In June 1994 the Company recorded a provision of $12,540,000 ($8,151,000 net
of a provision for deferred federal income taxes) for its investment in and
advances to Intersource Technologies, Inc., which has been engaged in
development of a new lighting technology called the E-lamp.  Efforts are
being made to recoup a portion of the investment.  The Company has agreed to
forbear its right to exercise any of the remedies specified in the Note
Purchase Agreement and related Security Agreement until April 30, 1995
while efforts are made to commercialize the technology.