|UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
FOR ANNUAL AND TRANSITION REPORTS
PURSUANT TO SECTIONS 13 OR 15d OF THE
SECURITIES EXCHANGE ACT OF 1934
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN
GENERAL INSTRUCTIONS I (1)(a) AND (b) OF FORM 10-K AND
IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.
[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the fiscal year ended December 31, 2000
OR
[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] For the transition period from ___________ to ____________                                                                                                                                                                                                                                                                            
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|Commission File
Number                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|333-79619                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Securities registered pursuant to Section 12(b) of the Act:  None.
Securities registered pursuant to Section 12(g) of the Act:  None.
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  [ ]
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES [X]    NO[   ]
1
The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant:
None.
|DOCUMENTS INCORPORATED BY REFERENCE.
Not applicable.


2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            





|WEST PENN FUNDING LLC
FORM 10-K ANNUAL REPORT TO
THE SECURITIES AND EXCHANGE COMMISSION
FOR THE YEAR ENDED DECEMBER 31, 2000
|----------------------------------------------------------------------------------------------------------------------------





|TABLE OF CONTENTS
|-----------------
|Page             
|PART I           
|Item 1           
|Item 2           
|Item 3           
|Item 4           
|PART II          
|Item 5           
|Item 6           
|Item 7           
|Item 7A          
|Item 8           
|                 
|                 
|                 
|                 
|                 
|Item 9           
|PART III         
|Item 10          
|Item 11          
|Item 12          
|Item 13          
|PART IV          
|Item 14          
|                 
|                 

3



|Glossary of Terms and AbbreviationsCAPITAL SUBACCOUNT - An account held by the Trustee under the Indenture which is funded by a contribution to West Penn Funding LLC by West Penn Funding Corporation at the date of issuance of each series of transition bonds.
COMPETITION ACT - The Pennsylvania Electricity Generation Customer Choice and Competition Act, enacted in Pennsylvania in December 1996.
GENERAL SUBACCOUNT - An account held by the Trustee under the Indenture, into which Intangible Transition Charge remittances by the Servicer are deposited.  The Trustee allocates the funds from the General Subaccount to other subaccounts on the
quarterly payment dates.
INDENTURE - The Indenture entered into by West Penn Funding LLC and the Trustee, providing for the issuance of transition bonds.
ITC - Intangible Transition Charge, which West Penn has been authorized by the PaPUC to impose on customer bills and to collect through a nonbypassable billing mechanism to recover Qualified Transition Expenses.
ITP - Intangible Transition Property, which is the property right created under the Competition Act representing the irrevocable right of West Penn Funding LLC to receive, through ITC, amounts sufficient to recover all Qualified Transition Expenses.
OVERCOLLATERALIZATION SUBACCOUNT - An account held by the Trustee under the Indenture, which is funded ratably from collections of ITC over the term of each series of transition bonds.
PaPUC - The Pennsylvania Public Utility Commission.
QUALIFIED RATE ORDER - The final order issued by the PaPUC to West Penn in November 1998, in connection with West Penn's restructuring filing under the Competition Act, as supplemented by an August 1999 PaPUC order.
QUALIFIED TRANSITION EXPENSES - The transition or stranded costs of an electric utility approved by the PaPUC for recovery through the issuance of transition bonds; the costs of retiring existing debt or equity capital of the electric utility or its
holding company parent, including accrued interest and acquisition or redemption premium, costs of defeasance, and other related fees, costs and charges, through the issuance of transition bonds or the assignment, sale or other transfer of ITP; and the
costs incurred to issue, service or refinance the transition bonds, including accrued interest and acquisition or redemption premium, and other related fees, costs and charges associated with the transition bonds, or to assign, sell or otherwise transfer
ITP.
RESERVE SUBACCOUNT - An account held by the Trustee under the Indenture, which consists of remaining funds available after required allocations on the quarterly payment dates.
SERVICER - West Penn acting in this capacity under the Servicing Agreement.  In this capacity, West Penn calculates, bills and collects ITC, and maintains applicable accounting records, among other duties.
SERVICING AGREEMENT - The Intangible Transition Property Servicing Agreement between West Penn, as Servicer, and West Penn Funding LLC, as Issuer.
TRUSTEE - Bankers Trust Company, a New York banking corporation, as Trustee under the Indenture.
WEST PENN - West Penn Power Company, a Pennsylvania corporation.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4

|WEST PENN FUNDING LLC
ITEM 1. 	BUSINESS
GeneralWest Penn Funding LLC (the Company) is a Delaware limited liability company, whose sole member is West Penn Funding Corporation.  West Penn Funding Corporation is a wholly owned subsidiary of West Penn Power Company (West Penn).  The Company was
organized in May 1999, for the sole purpose of purchasing and owning Intangible Transition Property (ITP), issuing transition bonds (the Bonds), pledging its interest in ITP and other collateral to the Trustee under an Indenture between the Company and
the Trustee to collateralize the Bonds, and performing activities that are necessary to accomplish these purposes.  The Company's organizational documents require it to operate in a manner so that its assets will not be consolidated with the bankruptcy
estate of West Penn or West Penn Funding Corporation in the event that West Penn or West Penn Funding Corporation becomes subject to a bankruptcy proceeding.
The only material business conducted by the Company has been the acquisition of ITP from West Penn Funding Corporation and the issuance in November 1999 of $600 million of Bonds, Series 1999-A, Class A-1 through Class A-4.  The specific interest rate
and maturity of each class of bonds is specified in Note C of the Notes to Financial Statements.  Each series of Bonds have been registered in the name of Cede & Co., as nominee of the Depository Trust Company.  All of the Bonds were sold to a
syndicate of underwriters.
In 1999, the Company used the proceeds of the issuance of the Bonds to pay expenses of issuance and to purchase the transferred ITP from West Penn Funding Corporation.  West Penn arranged for the formation of West Penn Funding Corporation as a
bankruptcy remote special purpose entity for the purpose of holding ITP before the issuance of the first series of the Bonds.
West Penn, as Servicer under the Servicing Agreement, is required to manage, service, administer and make collections of the ITP.  The Servicing Agreement also requires West Penn, as Servicer, to file adjustment requests on each calculation date, and
the Competition Act and the Qualified Rate Order require the Pennsylvania Public Utility Commission (PaPUC) to act upon these requests within specified time periods.  These adjustment requests are based on actual Intangible Transition Charge (ITC)
collections and updated assumptions by the Servicer as to projected future usage of electricity by customers, expected delinquencies and write-offs, and future payments and expenses relating to the ITP and the Bonds.    In October 2000, the Servicer filed
an adjustment request, and new rates became effective on January 1, 2001.
Intangible Transition Property
The ITP represents the irrevocable right of West Penn, or its successor or assignee, to collect a non-bypassable ITC from customers pursuant to the Qualified Rate Order in accordance with the Competition Act.  The Qualified Rate Order authorized
West Penn to securitize up to $670 million of its stranded costs.  West Penn, or any assignee of West Penn to whom ITP is sold, may issue and sell, in reliance on the Qualified Rate Order, one or more series of the Bonds, each series in one or more
classes, secured by ITP.  The Company acquired the ITP and issued the Bonds in November 1999.  The principal amount of the Bonds, interest, fees, and funding of the Overcollateralization Subaccount will be recovered through ITC payable by retail consumers
of electricity within West Penn's service territory who receive electric delivery service from West Penn.
ITEM 2.	PROPERTIES
The Company has no physical property.  Its primary asset is the ITP described above in Item 1 ("Business - 
Intangible Transition Property").

5
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|ITEM 3. 	LEGAL PROCEEDINGSNone.ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSOmitted pursuant to Instruction I of Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        



|PART II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(a)	Sales of Unregistered Securities.  There is no established public trading market for the Company's equity securities.  West Penn Funding Corporation, which is a wholly owned subsidiary of West Penn, owns all of the
Company's equity.  In December 2000, West Penn Funding Corporation transferred $1.622 million to the Company as an additional capital contribution to enable the Company to pay amounts due to West Penn for reimbursement of certain debt issuance
expenses.   Such transaction was exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(2).  The Company made no other sales of unregistered securities in 2000.                                                                                                                                                                                            
|(b)	Restriction on Dividends.  The Company may not make any payments, distributions or dividends to any member of the Company with respect to its membership interest in the Company except in accordance with the Indenture.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(c)	Bondholders.  As of December 31, 2000, the sole holder of the Bonds was Cede & Co., as nominee of the Depository Trust Company.  The Bonds are not registered on any national securities exchange and are not
traded on any established trading market.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|ITEM 6.	SELECTED FINANCIAL DATA                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Omitted pursuant to Instruction I of Form 10-K.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
RESULTS OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|The following analysis of the results of operations and financial condition of the Company is in an abbreviated format pursuant to Instruction I of Form 10-K.  Such analysis should be read in conjunction with the financial
statements attached hereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|As discussed above under Item 1 "Business - General," the Company is a Delaware limited liability company, whose sole member is West Penn Funding Corporation, which is a wholly owned subsidiary of West Penn.  As discussed
in Note C to Financial Statements, on November 16, 1999, the Company issued the Bonds and transferred the proceeds in exchange for all rights, title and interest in the ITP from West Penn Funding Corporation.  As the Company was formed for
limited purposes, as discussed under Item 1 "Business - General," the statement of operations effects were limited primarily to revenue from collections of ITC by the Servicer, interest income earned on the Capital Subaccount maintained by the Trustee and
on temporary investments, interest expense on the Bonds, amortization of the ITP, servicing fees and other administrative expenses.



6





|During 2000, the income generated from the ITP was approximately $96,024,000.  The Company also earned approximately $489,100 in interest, of which $45,300 was earned from the Capital Subaccount maintained by the Trustee,
$439,400 was earned from the General Subaccount and $4,400 from the Overcaollateralization Subaccount.  Interest expense of approximately $40,678,000 consists of interest on the Bonds, amortization of debt issuance expenses and the discount on the Bonds.
The Company also incurred servicing fees of approximately $1,250,000 and other administrative fees of $111,000.  The increase from 1999 to 2000 resulted from the difference in the collection period covered by each reporting period.  The 1999 revenues
represent activities from the bond issue dates in November 1999 through December 1999, compared to the bond activity for 2000, which was a full twelve-month period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|The principal amount of the Bonds, interest, fees, and funding of the Overcollateralization Subaccount will be recovered through ITC payable by retail consumers of electricity within West Penn's service territory who
receive electric delivery service from West Penn.  As part of West Penn's responsibility as Servicer under the Servicing Agreement, as discussed in Item 1 "Business - General," West Penn remitted to the Trustee $88,844,400 of ITC collections for the
period from January 1, 2000 to December 31, 2000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|On scheduled payment dates in March, June, September and December 2000, the Trustee made quarterly payments of Bond principal, interest and related expenses.  ITC collections were sufficient to pay interest and a portion
of the schedule principal payment on the Bonds.  However, due to the lag in ITC billed by West Penn to its customers and funds collected from customers during the initial period for the implementation of the ITC, the Trustee was required to withdraw
$3,000,000 from the Capital Subaccount.  Under the Competition Act and the Qualified Rate Order, withdrawals from the Capital Subaccount must be replenished by increases in ITC by the end of the next reconciliation period.  Principal payments on the Bonds
were $2.9 million less than scheduled as of December 31, 2000.  To reduce the likelihood that shortfalls will occur in 2001, West Penn, as servicer, filed a request for an adjustment to the ITC with the PaPUC on October 2, 2000.  Approval, which was
granted by the PaPUC on December 20, 2000, effective January 1, 2001, will allow West Penn to produce additional revenues sufficient to replenish the Capital Subaccount prior to the December 2001 quarterly payment date.  This did not constitute an Event
of Default under the Indenture.FINANCIAL CONDITION, REQUIREMENTS, AND RESOURCES
Liquidity and Capital Requirements
|West Penn Funding Corporation, parent of the Company, contributed $1.6 million in cash to enable the Company to pay amounts due to West Penn for reimbursement of certain debt issuance expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Derivative Instruments and Hedging Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities."  SFAS No. 133 was subsequently amendedby
SFAS No. 137, "Accounting for Derivative Instruments and Hedging Activities - Deferral of the Effective Date of FASB Statement No. 133 - an amendment of FASB Statement No. 133" and SFAS No. 138, "Accounting for Certain Derivative Instruments and Certain
Hedging Activities - an amendment of FASB Statement No. 133."  Effective January 1, 2001, the Company implemented the requirements of these accounting standards.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|The Company has completed an inventory of financial instruments, commodity contracts, and other commitments for the purpose of identifying and assessing all of the Company's derivatives.  From this inventory, the Company
determined that it had no financial instruments, commodity contracts, or other commitments that required recognition as assets or liabilities on the balance sheet at fair value under the provisions of SFAS 133. Based on the Company's current activities,
SFAS No. 133 is not expected to create a significant increase in the volatility of reported earnings and other comprehensive income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

7

|New Accounting Standard                                                                                                                                                                                                                                                                                                                                                                                                                  
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|In September 2000, the FASB issued SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".  The Statement provides accounting and reporting standards to transfers of
and servicing of financial assets and extinguishments of liabilities and is effective for transfers occurring after March 31, 2001.  The statement is not expected to have a material impact on the Company.
|ITEM 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK                                                                                                                                                                                                                                                                                                                                                                   
|None.                                                                                                                                                                                                                                                                                                                                                                                                                                    



8



|ITEM 8.  	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATASTATEMENT OF OPERATIONS
|----------------------------------------------------------------------------



|                                               | Year Ended
December 31,2000 | From May 26,
Inception to
December 31,1999
|---------------------------------------------- | --------------------------- | ------------------------------------------
|                                               | (Thousands of Dollars)     
|                                               |                             |                                           
|Revenues:                                      |                             |                                           
|Intangible transition charges                  | $   96,024                  | $   7,502                                 
|Interest income                                | 489                         | 6                                         
|Total Revenues                                 | 96,513                      | 7,508                                     
|                                               |                             |                                           
|Operating Expenses:                            |                             |                                           
|Amortization of intangible transition property | 54,298                      | 2,323                                     
|Interest on transition bonds                   | 39,545                      | 4,944                                     
|Amortization of debt issuance costs            | 1,133                       | 126                                       
|Administrative and general expense             | 1,361                       | 105                                       
|Total operating expenses                       | 96,337                      | 7,498                                     
|Operating income                               | 176                         | 10                                        
|                                               |                             |                                           
|Income tax expense                             | 60                          | 4                                         
|                                               |                             |                                           
|Net income                                     | $116                        | $6                                        
|                                               |                             |                                           
|                                               |                             |                                           
|                                               |                             |                                           
|STATEMENT OF MEMBER'S EQUITY                   |                             |                                           
|                                               |                             |                                           
|Balance at May 26, 1999                        | $                           | $                                         
|Balance at January 1                           | 3,031                       |                                           
|                                               |                             |                                           
|Add:                                           |                             |                                           
|Investment from Member                         | 1,622                       | 3,025                                     
|Net income                                     | 116                         | 6                                         
|                                               |                             |                                           
|Balance at December 31                         | $ 4,769                     | $ 3,031                                   

See accompanying notes to financial statements.



9





|STATEMENT OF CASH FLOWS                         |                           
|----------------------------------------------- | --------------------------
|                                                | Year EndedDecember 31,2000
|                                                | (Thousands of Dollars)    
|                                                |                           
|Cash Flows from Operations:                     |                           
|Net Income                                      | $     116                 
|Amortization of intangible  transition property | 54,298                    
|Changes in certain current assets               |                           
|and liabilities:                                |                           
|Accounts receivable from West Penn              | (7,520)                   
|Unamortized debt issuance expense, net          | (328)                     
|Interest and taxes accrued                      | (4,482)                   
|Accounts payable to West Penn                   | (633)                     
|                                                | 41,451                    
|                                                |                           
|Cash Flows from Investing:                      |                           
|Purchase of intangible transition property      |                           
|                                                |                           
|Cash Flows from Financing:                      |                           
|Proceeds from issuance of transition bonds      |                           
|Retirement of transition bonds                  | (46,833)                  
|Change in restricted funds                      | 3,006                     
|Equity contribution from member                 | 1,622                     
|                                                | (42,205)                  
|                                                |                           
|Net Change in Cash and Temporary Cash           |                           
|Investments                                     | (754)                     
|Cash and Temporary Cash Investments             |                           
|at January 1,                                   | 1,003                     
|Cash and Temporary Cash Investments             |                           
|at December 31                                  | $249                      
|                                                |                           
|                                                |                           
|Supplemental Cash Flow Information              |                           
|Cash paid during the period:                    |                           
|Interest                                        | $  44,089                 
|Income taxes                                    | $                         

See accompanying notes to financial statements.
*Certain amounts have been restated for comparison purposes.



10



|BALANCE SHEET                                                                                                |                       
|------------------------------------------------------------------------------------------------------------ | ----------------------
|                                                                                                             | December 31           
|                                                                                                             | 2000                  
|                                                                                                             | (Thousands of Dollars)
|                                                                                                             |                       
|ASSETS                                                                                                       |                       
|                                                                                                             |                       
|Current Assets:                                                                                              |                       
|Cash and temporary cash investments                                                                          | $         249         
|Accounts receivable from West Penn                                                                           | 14,994                
|Restricted funds                                                                                             | -                     
|Intangible transition property                                                                               | 56,280                
|                                                                                                             | 71,523                
|                                                                                                             |                       
|                                                                                                             |                       
|Noncurrent Assets:                                                                                           |                       
|Intangible transition property                                                                               | 482,039               
|Unamortized debt issuance expense                                                                            | 4,781                 
|                                                                                                             | 486,820               
|                                                                                                             |                       
|Total                                                                                                        | $558,343              
|                                                                                                             |                       
|                                                                                                             |                       
|LIABILITIES AND MEMBER'S EQUITY                                                                              |                       
|                                                                                                             |                       
|Current Liabilities:                                                                                         |                       
|Long-term debt due within one year                                                                           | $    60,184           
|Accounts payable to West Penn                                                                                |                       
|Federal and state income taxes accrued                                                                       | 65                    
|Interest accrued                                                                                             | 401                   
|                                                                                                             | 60,650                
|                                                                                                             |                       
|                                                                                                             |                       
|                                                                                                             |                       
|Long-term debt, net of discount                                                                              | 492,924               
|                                                                                                             |                       
|Member's Equity                                                                                              | 4,769                 
|                                                                                                             |                       
|Total                                                                                                        | $558,343              
|See accompanying notes to financial statements.
*Certain amounts have been restated for comparison purposes. |                       



11





|NOTES TO FINANCIAL STATEMENTS(These notes are an integral part of the financial statements.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NOTE A:  NATURE OF OPERATIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|West Penn Funding LLC (the Company), a limited liability company established under the laws of the State of Delaware, was formed on May 26, 1999.  West Penn Funding Corporation is the sole member of the Company.  West Penn
Funding Corporation is a wholly owned subsidiary of West Penn Power Company (West Penn), an operating electric utility.  West Penn is a wholly owned subsidiary of Allegheny Energy, Inc. (Allegheny Energy), a public utility holding company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|The Company was organized for the sole purpose of purchasing and owning Intangible Transition Property (ITP), issuing Transition Bonds (Bonds), pledging its interest in ITP and other collateral to the bond trustee, and
performing activities that are necessary, suitable or convenient to accomplish these purposes.  ITP represents the irrevocable right of West Penn, or its successor or assignee, to collect a non-bypassable Intangible Transition Charge (ITC) from customers
pursuant to a Qualified Rate Order (PaPUC Order) issued November 19, 1998, and supplemented by order dated August 12, 1999, by the PaPUC in accordance with the Pennsylvania Electricity Generation Customer Choice Order and Competition Act (applicable law)
enacted in Pennsylvania in December 1996.  The PaPUC Order authorizes the ITC to be sufficient to recover the principal amount of Bonds issued by the Company, plus an amount sufficient to provide for any credit enhancement, to fund any reserves and to pay
interest, redemption premiums, servicing fees and other expenses relating to the Bonds.
|West Penn transferred the ITP to West Penn Funding Corporation, which then sold the ITP to West Penn Funding LLC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|The Company issued $600.0 million of Bonds in four different classes on November 16, 1999 (see Note C for additional information).  The proceeds were used to fund the purchase of ITP.  The ITP and restricted funds were
used to collateralize the Bonds.  Under applicable law, the Bonds are recourse to the Company and are collateralized on a pro rata basis by the ITP and the equity and assets of the Company.  The source of repayment is the ITC authorized pursuant to the
PaPUC Order, which charges are collected from West Penn customers by West Penn, as servicer.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|ITC collections are deposited by West Penn with the Company and are used to pay the expenses of the Company, to pay debt service on the Bonds and to fund credit enhancement for the Bonds.  The Company also pledged the
capital contributed by West Penn Funding Corporation to collateralize the debt service requirements of the Bonds.  The Bonds are non-recourse to West Penn Funding Corporation, West Penn, and Allegheny Energy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|NOTE B:  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Use of EstimatesThe preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates that affect the reported amounts of assets, liabilities, revenues, expenses, and disclosures of contingencies
during the reporting period.  Actual results could differ from these estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|Cash and Temporary Cash InvestmentsFor purposes of the statement of cash flows, temporary cash investments with original maturities of three months or less, generally in the form of commercial paper, certificates of deposit, and repurchase agreements, are considered to be the
equivalent of cash.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|Restricted FundsUnder the Indenture, the Company deposited an amount equal to 0.5% of the initial principal amount of the Bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

12











|into the "Capital Subaccount" with the Bond Trustee (Bankers Trust Company, a New York banking corporation).  West Penn Funding Corporation contributed this amount to the Company.  This account is the last account drawn in
the event that "General Subaccount" collections are insufficient to make required allocations.  If the "Capital Subaccount" is used, it will be replenished from the ITC remittances to its original level through the periodic reconciliation process.
Accordingly, the "Capital Subaccount" is classified as Restricted Funds on the balance sheet.  (See Note C for additional information.)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|RevenueThe Company records intangible transition revenues in the period ITC is billed to customers by West Penn.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|Amortization of Intangible Transition PropertyThe ITP is being amortized over the life of the Bonds, based on ITC revenues, interest accruals and other fees.  The schedule of amortization, calculates the monthly amortization based on actual ITC revenues to date, and the projection of ITC
revenues on a going forward basis, adjusting future months estimated amortization over the remaining life of the bonds.                                                                                                                                                                                                      
|Amortization of Debt Issuance Costs and Discount on DebtThe costs associated with the issuance of the Bonds are amortized over the life of the Bonds utilizing the effective interest method.                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Income TaxesThe Company joins with its Parents and affiliates in filing a consolidated federal income tax return.  The consolidated tax liability is allocated among the participants generally in proportion to the taxable
income of each participant, except that no subsidiary pays tax in excess of its separate return tax liability.  For the Company, the difference between the effective tax rate and the statutory tax rate of 35% is not significant.                                                                                                                                                             
|Comprehensive IncomeSFAS No. 130, "Reporting Comprehensive Income," effective for 1998, established standards for reporting comprehensive income and its components (revenues, expenses, gains, and losses) in the financial statements.
The Company does not have any elements of other comprehensive income to report in accordance with SFAS No. 130.                                                                                                                                                                                                                                                                      
|NOTE C:  LONG-TERM DEBT                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|In November 1999, the Company issued $600.0 million of Series 1999-A Bonds.  The Bonds consist of four classes with various interest rates, ranging from Class A-1 at 6.32% to Class A-4 at 6.98% (refer to schedule below).
The Company used the proceeds from the Bonds to purchase ITP from West Penn Funding Corporation.  The ITP and other assets of the Company collateralize the Bonds.                                                                                                                                                                                                                               

13









|                                                                               
|-------------------------------------------------------------------------------
|Scheduled maturities and interest rates for the Bonds at December 31, 2000 are:



|Class                                                        | Bond Rate                                               | Initial Class
PrincipalBalance                              | Expected FinalPayment Date                                       | Final
Maturity Date                                                 
|------------------------------------------------------------ | ------------------------------------------------------- | ----------------------------------------------------------- | ---------------------------------------------------------------- | --------------------------------------------------------------------
|                                                             |                                                         | ($ Thousands)                                               |                                                                  |                                                                     
|A-1
A-2
A-3
A-4                                              | 6.320%
6.630%
6.810%
6.980%                             | $  27,167
         172,000
         198,000
        156,000 | June 25, 2001
December 26, 2003
September 25, 2006
June 25, 2008 | June 25, 2003
December 26, 2005
September 25, 2008
December 26, 2008
|Total
Current Maturities
Unamortized Discount
Long-term Debt | $553,167
        ( 60,184)
        (59)
       $492,924 |                                                             |                                                                 
|                                                             |                                                        
|                                                             |                                                        
|                                                             |                                                        

|The source of repayment is ITC.  West Penn is collecting this non-bypassable charge from consumers of electricity within West Penn's service territory who received electricity delivery service from West Penn.  The Servicer
deposits collections of the ITC monthly into a "General Subaccount" maintained by the Trustee under the Indenture.  Each quarter, such monies are used to make principal and interest payments on the Bonds and pay fees, costs and charges specified in the
Indenture.  The Indenture also includes a "Reserve Subaccount" that is maintained for the purpose of retaining any excess amount of ITC collections and investment earnings not released to the Company.  The Indenture also provides for an "Ov
ercollateralization Subaccount."  The overcollateralization for these securities will be funded over the life of the series 1999-A Bonds and is expected to reach 0.5% of the initial principal balance of this series of transition bonds.Additionally, an amount equal to 0.5% of the initial principal amount of the Bonds was deposited into the "Capital Subaccount" under the indenture on the date of issuance.  If amounts available in the "General
Subaccount", "Reserve Subaccount", and the "Overcollateralization Subaccount" are not sufficient on any payment date to make scheduled payments specified in the Indenture, the Trustee will draw on amounts in the "Capital Subaccount."  On payment in full
of the Bonds, any remaining amounts that collateralize the Bonds will be released to the Company.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NOTE D:  INCOME TAXESThe total provision for income taxes is different from the amount produced by applying the federal income statutory tax rate of 35% to financial accounting income, as set forth below:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                            
|(Thousands of Dollars)                                                                                                                                                                                      
|Income before income taxes and                                                                                                                                                                              
|extraordinary charge                                                                                                                                                                                        
|Amount so produced                                                                                                                                                                                          
|Other, net                                                                                                                                                                                                  
|Total                                                                                                                                                                                                       

Income taxes payable on the balance sheet of $65,000 and $4,000, for 2000 and 1999, respectively, result from accruals for current tax liabilities based on current activity and estimates of book to tax adjustments.

14





|NOTE E: FAIR VALUE OF FINANCIAL INSTRUMENTSThe carrying amounts and estimated fair value of financial instruments at December 31 were as follows:
|-------------------------------------------------------------------------------------------------------------------------------------------------

|                               | 2000           | 1999     
|------------------------------ | -------------- | ---------
|(Thousands of Dollars)         | CarryingAmount | FairValue
|Long-term debt-
    Debentures |                |          
|$553,108                       | $569,276       | $599,941 

|The fair value of debentures was estimated based on actual market prices or market prices of similar issues.  The Company has no financial instruments held or issued for trading purposes.                                                                                                                                                                                                                           
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|NOTE F:  SIGNIFICANT AGREEMENTS AND RELATED PARTY TRANSACTIONS                                                                                                                                                                                                                                                                                                                                                        
|Under the Servicing Agreement, West Penn is required to manage and administer the ITP of the Company and to collect the ITC on behalf of the Company.  The Company will pay a maximum annual service fee of $1.25 million to
West Penn.  For the period ended December 31, 2000, the Company recorded servicing fees of $1.25 million, included in general and administrative expenses on the statement of operations.
|Debt issuance costs of approximately $1.5 million were incurred and recorded by the Company during 2000.  The Company will reimburse West Penn for any additional debt issuance costs it incurs for the transition bonds.                                                                                                                                                                                             
|At December 31, 2000, the balance sheet includes a receivable from West Penn of approximately $15.0 million for ITC collections.                                                                                                                                                                                                                                                                                      

15

|REPORT OF INDEPENDENT ACCOUNTANTS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|To West Penn Funding Corporation, the Sole Member
of West Penn Funding LLC:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|In our opinion, the accompanying balance sheets and related statements of operations, member's equity and cash flows present fairly, in all material respects, the financial position of West Penn Funding LLC (the Company)
at December 31, 2000 and 1999, and the results of its operations and its cash flows for the year ended December 31, 2000 and from May 26, 1999 (inception date) through December 31, 1999 in conformity with accounting principles generally accepted in the
United States of America.  These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audits.  We conducted our audits of these statements in
accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable basis for our opinion.
|PricewaterhouseCoopers LLP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|Pittsburgh, Pennsylvania
February 24, 2001                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 



16



|ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURENone.
PART III
ITEM 10.	DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Omitted pursuant to Instruction I of Form 10-K.
ITEM 11.	EXECUTIVE COMPENSATION
Omitted pursuant to Instruction I of Form 10-K.
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
Omitted pursuant to Instruction I of Form 10-K.
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Omitted pursuant to Instruction I of Form 10-K.
PART IV
ITEM 14.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a)	The following documents are filed as part of this report:
1.     Financial Statements (included in response to Item 8).
Report of Independent Accountants
Statement of Income and Member's Equity for the year ended December 31, 2000 and from May 26, 1999 
        (inception date ) to December 31, 1999
Statement of Cash Flows for the year ended December 31, 2000 and from May 26, 1999 (inception date ) to 
        December 31, 1999
Balance Sheet at December 31, 2000 and December 31, 1999
2.      Financial Statement Schedules.
None.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17



|3.	Exhibits.
See Exhibit Index, which appears following the Signature page to this report.
(b)	Reports on Form 8-K:
None.
|-------------------------------------------------------------------------------------------------------------------------



|SIGNATURESPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                                                          
|Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the date indicated.                  





|Name                                                         | Title                                                                    | Date          
|------------------------------------------------------------ | ------------------------------------------------------------------------ | --------------
|                                                             |                                                                          |               
|By  /s/ Michael P. Morrell
     Michael P. Morrell           | President (Principal Executive Officer)                                  | March 29, 2001
|                                                             |                                                                          |               
|By  /s/ Keith L. Warchol
     Keith L. Warchol               | Treasurer (Principal Financial Officer and
Principal Accounting Officer) | March 29, 2001
|                                                             |                                                                          |               
|By  /s/ Bruce M. Sedlock
     Bruce M. Sedlock               | Director                                                                 | March 29, 2001
|                                                             |                                                                          |               
|By   
     Terence A. Burke                                  | Director                                                                 |               
|                                                             |                                                                          |               
|By  /s/ Thomas C. Sheppard, Jr.
     Thomas C. Sheppard, Jr. | Director                                                                 | March 29, 2001







18



|SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS FILED PURSUANT TO SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED SECURITIES PURSUANT TO SECTION 12 OF THE ACT.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                                                                                                                                                       
|No such annual report, proxy statement, form of proxy or other soliciting material has been sent to security holders.                                                                  

|INDEX TO EXHIBITS
|-----------------
|                 
|3.1              
|3.2              
|3.3              
|3.4              
|4.1              
|4.2              
|4.3              
|10.2             
|10.3             
|99               



19