SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 13G

Under the Securities Exchange Act of 1934
(Amendment No. )*

Advanced Energy Industries, Inc.
(Name of Issuer)

Common Stock .001 par value
(Title of Class of Securities)

007973 10 0
(CUSIP Number)

*The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior page.

The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

(Continued on following page(s))

Page 1 of 4 Pages 
CUSIP No.                             13G                 Page  2  of  4  Pages
          ---------                                            ---    ---

-------------------------------------------------------------------------------
 (1) Names of Reporting Persons.  S.S. or I.R.S. Identification Nos. of Above
     Persons

     Douglas S. Schatz
-------------------------------------------------------------------------------
 (2) Check the Appropriate Box if a Member     (a)  / /
     of a Group*                               (b)  / /
-------------------------------------------------------------------------------
 (3) SEC Use Only

-------------------------------------------------------------------------------
 (4) Citizenship or Place of Organization
     United States
-------------------------------------------------------------------------------
Number of Shares              (5) Sole Voting
 Beneficially                       Power        12,139,500
 Owned by                    --------------------------------------------------
 Each Reporting               (6) Shared Voting
 Person With                        Power                 0
                             --------------------------------------------------
                              (7) Sole Dispositive
                                    Power        12,139,500
                             --------------------------------------------------
                              (8) Shared Dispositive
                                    Power                 0
-------------------------------------------------------------------------------
 (9) Aggregate Amount Beneficially Owned by Each Reporting Person
                                                 12,139,500
-------------------------------------------------------------------------------
(10) Check Box if the Aggregate Amount in Row (9) Excludes Certain Shares*

-------------------------------------------------------------------------------
(11) Percent of Class Represented by Amount in Row (9)
                                                       54.1%
-------------------------------------------------------------------------------
(12) Type of Reporting Person*
                                                         IN
-------------------------------------------------------------------------------
                    *SEE INSTRUCTION BEFORE FILLING OUT!

Page 3 of 4 Pages

ITEM 1(A). NAME OF ISSUER
Advanced Energy Industries, Inc.
ITEM 1(B). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES
1625 Sharp Point Drive, Fort Collins, CO 80525
ITEM 2(A). NAME OF PERSON(S) FILING
Douglas S. Schatz
ITEM 2(B). ADDRESS OF PRINCIPAL BUSINESS OFFICE OR, IF NONE, RESIDENCE
1625 Sharp Point Drive, Fort Collins, CO 80525
ITEM 2(C). CITIZENSHIP
Douglas S. Schatz is a citizen of the United States
ITEM 2(D). TITLE OF CLASS OF SECURITIES
Common Stock .001 par value
ITEM 2(E). CUSIP NUMBER
007973 10 0

ITEM 3. IF THIS STATEMENT IS FILED PURSUANT TO RULES 13D-1(B), OR 13D-2(B), CHECK WHETHER THE PERSON FILING IS A Not Applicable

(a) / / Broker or Dealer registered under Section 15 of the Act

(b) / / Bank as defined in section 3(a)(6) of the Act

(c) / / Insurance Company as defined in section 3(a)(19) of the Act

(d) / / Investment Company registered under section 8 of the Investment Company Act

(e) / / Investment Adviser registered under section 203 of the Investment Advisers Act of 1940

(f) / / Employee Benefit Plan, Pension Fund which is subject to the provisions of the Employee Retirement Income Security Act of 1974 or Endowment Fund; see Rule 13d-1(b)(1)(ii)(F)

(g) / / Parent Holding Company, in accordance with Rule 13d-1(b)(ii)(G)
(Note: See Item 7)

(h) / / Group, in accordance with Rule 13d-1(b)(1)(ii)(H)

Page 4 of 4 Pages

ITEM 4. OWNERSHIP

(a) Amount Beneficially Owned:
12,139,500
(b) Percent of Class:
54.1%

(c) Number of shares as to which such person has:

(i) sole power to vote or to direct the vote 12,139,500
(ii) shared power to vote or to direct the vote 0
(iii) sole power to dispose or to direct the disposition of 12,139,500
(iv) shared power to dispose or to direct the disposition of 0

ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following. / /

ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON
Not Applicable
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY
Not Applicable
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP
Not Applicable
ITEM 9. NOTICE OF DISSOLUTION OF GROUP
Not Applicable

ITEM 10. CERTIFICATION Not Applicable

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired in the ordinary course of business and were not acquired for the purpose of and do not have the effect of changing or influencing the control of the issuer of such securities and were not acquired in connection with or as a participant in any transaction having such purposes or effect.

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
2/13/98
(Date) 

/s/ Douglas S. Schatz
----------------------------------------
(Signature)
President and CEO
----------------------------------------
(Name/Title)