AEP INVESTMENTS, INC.
                     QUARTERLY REPORT PER REQUIREMENTS
                 OF HOLDING COMPANY ACT RELEASE NO. 25667
                    FOR THE QUARTER ENDED JUNE 30, 1995


                                 CONTENTS

                                                                          Page

Statement of Income and Statement of Retained Earnings                      1

Balance Sheet                                                               2

Statement of Cash Flows                                                     3

Notes to Financial Statements                                               4



                           AEP INVESTMENTS, INC.
                           STATEMENT OF INCOME 
                     THREE MONTHS ENDED JUNE 30, 1995
                                (UNAUDITED)



                                                              (in thousands)

REVENUES                                                           $ -   

EXPENSES
 Affiliated Services                                                   3
 Ohio Corporate Franchise Taxes                                        7
 Research and Development                                            200
 Other                                                                 1

  TOTAL OPERATING EXPENSES                                           211

OPERATING LOSS                                                      (211)

OTHER INCOME DEDUCTIONS                                               75

LOSS BEFORE FEDERAL INCOME TAXES                                    (286)

FEDERAL INCOME TAX CREDIT                                           (100)

NET LOSS                                                           $(186)

                                                         

                      STATEMENT OF RETAINED EARNINGS
                     THREE MONTHS ENDED JUNE 30, 1995
                                (UNAUDITED)



                                                              (in thousands)

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

NET LOSS                                                             (186)

BALANCE AT END OF PERIOD*                                         $(8,416)

     *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
                               JUNE 30, 1995
                                (UNAUDITED)



                                                              (in thousands)

ASSETS

INVESTMENTS:
  Intersource Technologies, Inc.                                  $11,500
  Envirotech Investment Fund I                                        197

    TOTAL INVESTMENTS                                              11,697

CURRENT ASSETS:
  Cash                                                                 43
  Notes Receivable - Intersource Technologies, Inc.                 1,000
  Accounts Receivable                                                  40
  Prepayments                                                          14

    TOTAL CURRENT ASSETS                                            1,097

DEFERRED FEDERAL INCOME TAXES                                       4,485

DEFERRED DEBITS                                                       234

      TOTAL ASSETS                                                $17,513


CAPITALIZATION AND LIABILITIES

Paid-in Capital                                                   $13,385

Accumulated Deficit                                                (8,416)

  TOTAL CAPITALIZATION                                              4,969

CURRENT LIABILITIES - Taxes Accrued                                     4

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

      TOTAL CAPITALIZATION AND LIABILITIES                        $17,513




     See Notes to Financial Statements.



                           AEP INVESTMENTS, INC.
                          STATEMENT OF CASH FLOWS
                     THREE MONTHS ENDED JUNE 30, 1995
                                (UNAUDITED)


                                                              (in thousands)
OPERATING ACTIVITIES:

  Net Loss                                                        $(186)

  Changes in Certain Assets and Liabilities:
    Prepayments                                                      (2)
    Deferred Federal Income Taxes                                   (96)
    Accounts Payable                                                 (3)
    Taxes Accrued                                                    17

  Net Cash Flows Used For Operating Activities                     (270)

INVESTING ACTIVITIES - Envirotech Investment Fund I                (197)

FINANCING ACTIVITIES - Capital Contributions from Parent Company    475

NET INCREASE IN CASH                                                  8

CASH AT BEGINNING OF PERIOD                                          35

CASH AT END OF PERIOD                                             $  43

SUPPLEMENTAL DISCLOSURE:
  Cash received for income tax refund was $20,000.






     See Notes to Financial Statements.


                           AEP Investments, Inc.
                       Notes to Financial Statements
                               June 30, 1995



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 July 31, 1995
while efforts are made to commercialize the technology.