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File No. 70-9119
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 2 TO
FORM U-1 APPLICATION-DECLARATION
UNDER THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
--------------------------------
CENTRAL AND SOUTH WEST CORPORATION
1616 Woodall Rodgers Freeway
P.O. Box 660164
Dallas, Texas 75266
CENTRAL AND SOUTH WEST SERVICES, INC.
1616 Woodall Rodgers Freeway
P.O. Box 660164
Dallas, Texas 75266
(Name of company filing this statement and address
of principal executive office)
---------------------------------
CENTRAL AND SOUTH WEST CORPORATION
(Name of top registered holding company parent)
---------------------------------
Wendy G. Hargus
Treasurer
Central and South West Corporation
1616 Woodall Rodgers Freeway
P.O. Box 660164
Dallas, Texas 75266-0164
Joris M. Hogan, Esq.
Milbank, Tweed, Hadley & McCloy
1 Chase Manhattan Plaza
New York, New York 10005
(Names and addresses of agents for service)
<PAGE>
Central and South West Corporation ("CSW"), a Delaware
corporation and a registered holding company under the Public Utility Holding
Company Act of 1935, as amended (the "Act"), and Central and South West
Services, Inc. ("Services" and, together with CSW, the "Applicants"), a Texas
corporation and a wholly-owned service company subsidiary of CSW, hereby file
Amendment No. 2 to the Form U-1 Application-Declaration in File No. 70-9119 (the
"Application") for the purpose of amending Item 6 thereof in the following
respects. In all other respects, the Application as previously filed and amended
will remain the same.
Item 6. Exhibits and Financial Statements.
Item 6 is hereby amended to file the following exhibit:
Exhibit 4 - Financial Statements of each of the Applicants per books
and pro forma, as of March 31, 1998.
<PAGE>
S I G N A T U R E
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, as amended, each of the undersigned Applicants have duly
caused this document to be signed on their behalf by the undersigned thereunto
duly authorized.
Dated: June 23, 1998
CENTRAL AND SOUTH WEST CORPORATION
CENTRAL AND SOUTH WEST SERVICES, INC.
By:/s/ WENDY G. HARGUS
Wendy G. Hargus
Treasurer
<PAGE>
INDEX OF EXHIBITS
EXHIBIT TRANSMISSION
NUMBER REVISED EXHIBITS METHOD
4 Financial Statements of each of Electronic
the Applicants per books and pro
forma, as of March 31, 1998.
EXHIBIT 4
INDEX
TO
FINANCIAL STATEMENTS
CENTRAL AND SOUTH WEST CORPORATION AND SUBSIDIARY COMPANIES
Consolidated Balance Sheets - Per Books and Pro Forma
as of March 31, 1998
Consolidated Statement of Income for the Twelve Months Ended
March 31, 1998
Consolidated Statement of Retained Earnings for the Twelve Months Ended
March 31, 1998
CENTRAL AND SOUTH WEST CORPORATION (CORPORATE)
Balance Sheets - Per Books and Pro Forma as of March 31, 1998
Statement of Income for the Twelve Months Ended March 31, 1998
CENTRAL AND SOUTH WEST SERVICES, INC.
Balance Sheets - Per Books and Pro Forma as of March 31, 1998
Statement of Income for the Twelve Months Ended March 31, 1998
Statement of Retained Earnings for the Twelve Months Ended
March 31, 1998
PRO FORMA ADJUSTMENTS TO BALANCE SHEETS
STATEMENT OF CHANGES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
PER BOOKS AND PRO FORMA
AS OF MARCH 31, 1998
UNAUDITED
(Millions)
Per Pro Forma Pro
Books Adjustments Forma
--------------------------------
ASSETS
FIXED ASSETS
Electric utility plant
Production $5,831 $5,831
Transmission 1,570 1,570
Distribution 4,566 4,566
General 1,402 1,402
Construction work in progress 179 179
Nuclear fuel 197 197
Other Diversified 264 264
--------------------------------
14,009 14,009
Less - Accumulated depreciation 5,399 5,399
--------------------------------
8,610 8,610
--------------------------------
CURRENT ASSETS
Cash and temporary cash investments 93 93
Accounts receivable 831 831
Materials and supplies, at average cost 167 167
Electric fuel inventory 70 70
Under-recovered fuel costs 32 32
Prepayments and other 75 75
--------------------------------
1,268 1,268
--------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Deferred plant costs 502 502
Mirror CWIP asset - net 282 282
Other non-utility investments 338 338
Securities available for sale 98 98
Income tax related regulatory assets, net 323 323
Goodwill 1,451 1,451
Other 516 516
--------------------------------
3,510 3,510
--------------------------------
$13,388 $0 $13,388
================================
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
PER BOOKS AND PRO FORMA
AS OF MARCH 31, 1998
UNAUDITED
(Millions)
Per Pro Forma Pro
Books Adjustments Forma
--------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common Stock Equity -
Common stock, $3.50 par value,
authorized 350,000,000 shares;
issued and outstanding 212,300,000 shares $743 $743
Paid-in capital 1,040 1,040
Retained earnings 1,718 1,718
Foreign currency translation and other 35 35
--------------------------------
Total Common Stock Equity 3,536 3,536
--------------------------------
Preferred stock
Not subject to mandatory redemption 176 176
Subject to mandatory redemption 26 26
Certain Subsidiary-obligated, mandatorily
redeemable preferred securities of
subsidiary trusts holding solely
Junior Subordinated Debentures of such
Subsidiaries 335 335
Long-term debt 3,883 3,883
--------------------------------
Total Capitalization 7,956 7,956
--------------------------------
CURRENT LIABILITIES
Long-term debt/preferred stock
due within twelve months 29 29
Short-term debt 911 911
Short-term debt - CSW Credit 556 556
Loan Notes 58 58
Accounts payable 474 474
Accrued taxes 177 177
Accrued interest 106 106
Other 173 173
--------------------------------
2,484 2,484
--------------------------------
DEFERRED CREDITS
Accumulated deferred income taxes 2,434 2,434
Investment tax credits 275 275
Other 239 239
--------------------------------
2,948 2,948
--------------------------------
$13,388 $0 $13,388
================================
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
FOR THE TWELVE MONTHS MARCH 31, 1998
UNAUDITED
(Millions)
OPERATING REVENUES $5,248
-----------
OPERATING EXPENSES AND TAXES
U.S. Electric fuel 1,152
U.S. Electric purchased power 84
United Kingdom Cost of Sales 1,308
Other operating 925
Maintenance 152
Depreciation and amortization 502
Taxes, other than income 193
Income taxes 164
-----------
4,480
-----------
OPERATING INCOME 768
-----------
OTHER INCOME AND DEDUCTIONS
Other 41
Non-operating income taxes 3
-----------
44
-----------
INCOME BEFORE INTEREST CHARGES 812
-----------
INTEREST AND OTHER CHARGES
Interest on long-term debt 331
Distributions on trust preferred securities 24
Interest on short-term debt and other 94
Preferred stock dividends 10
Gain on reacquired preferred stock (10)
-----------
449
-----------
INCOME BEFORE EXTRAORDINARY ITEM 363
-----------
EXTRAORDINARY ITEM - UK Windfall Profits Tax (176)
-----------
NET INCOME FOR COMMON STOCK $187
===========
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
FOR THE TWELVE MONTHS MARCH 31, 1998
UNAUDITED
(Millions)
RETAINED EARNINGS AT MARCH 31, 1997 $1,896
Add: Net income for common stock 187
-----------
2,083
-----------
Deduct: Common stock dividends 369
Retained earnings adjustment (4)
-----------
RETAINED EARNINGS AT MARCH 31, 1998 $1,718
===========
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
BALANCE SHEETS
PER BOOKS AND PRO FORMA
AS OF MARCH 31, 1998
UNAUDITED
(Millions)
Per Pro Forma Pro
Books Adjustments Forma
--------------------------------
ASSETS
FIXED ASSETS
Electric utility plant
General $1 $1
Less - Accumulated depreciation (1) (1)
--------------------------------
NET PLANT 0 0
INVESTMENTS IN COMMON STOCK
OF SUBSIDIARY COMPANIES (at equity) 3,862 3,862
--------------------------------
CURRENT ASSETS
Cash and temporary cash investments 355 355
Accounts and interest receivable -
Affiliated 257 257
Prepayments and other 7 7
--------------------------------
619 619
--------------------------------
DEFERRED CHARGES AND OTHER ASSETS 22 22
--------------------------------
$4,503 $0 $4,503
================================
CAPITALIZATION
Common Stock Equity -
Common stock, $3.50 par value;
authorized 350,000,000 shares;
issued and outstanding 212,300,000 shares $743 $743
Paid-in capital 1,040 1,040
Retained earnings 1,718 1,718
Unrealized holding gains and losses (4) (4)
--------------------------------
Total Common Stock Equity 3,497 3,497
--------------------------------
Long-term debt 0 0
--------------------------------
Total Capitalization 3,497 3,497
--------------------------------
CURRENT LIABILITIES
Short-term debt 911 911
Accounts payable and other 34 34
--------------------------------
945 945
--------------------------------
DEFERRED CREDITS 61 61
--------------------------------
$4,503 $0 $4,503
================================
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
STATEMENT OF INCOME
FOR THE TWELVE MONTHS MARCH 31, 1998
UNAUDITED
(Millions)
INCOME
Equity in earnings of subsidiaries
Central Power and Light Company $140
Public Service Company of Oklahoma 48
Southwestern Electric Power Company 96
West Texas Utilities Company 24
SEEBOARD U.S.A. (58)
CSW Credit, Inc. 12
CSW Energy, Inc. 5
CSW Leasing, Inc. 1
CSW International, Inc. (7)
CSW Communications, Inc. (12)
Enershop Inc. (3)
CSW Energy Services, Inc. (2)
Other Income 20
----------
264
----------
EXPENSES AND TAXES
General and administrative expenses 44
Depreciation and amortization expense --
Interest expense 48
Taxes, other than income 2
Federal income taxes (17)
----------
77
----------
NET INCOME $187
==========
<PAGE>
CENTRAL AND SOUTH WEST SERVICES, INC.
BALANCE SHEETS
PER BOOKS AND PRO FORMA
AS OF MARCH 31, 1998
UNAUDITED
(Millions)
Per Pro Forma Pro
Books Adjustments Forma
--------------------------------
ASSETS
General plant $120 $120
Less - Accumulated depreciation 36 36
--------------------------------
84 84
--------------------------------
CURRENT ASSETS
Cash and temporary investments 1 1
Accounts receivable affiliated 20 20
Accounts receivable non-affiliated 2 2
--------------------------------
23 23
--------------------------------
DEFERRED CHARGES AND OTHER ASSETS 19 19
--------------------------------
$126 $0 $126
================================
<PAGE>
CENTRAL AND SOUTH WEST SERVICES, INC.
BALANCE SHEETS
PER BOOKS AND PRO FORMA
AS OF MARCH 31, 1998
UNAUDITED
(Millions)
Per Pro Forma Pro
Books Adjustments Forma
--------------------------------
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Long-term debt $30 $30
--------------------------------
Total capitalization 30 30
--------------------------------
CURRENT LIABILITIES
Accounts payable non-affiliated 7 7
Advances from affiliates and other 65 65
--------------------------------
72 72
--------------------------------
DEFERRED CREDITS 24 24
--------------------------------
$126 $0 $126
================================
<PAGE>
CENTRAL AND SOUTH WEST SERVICES, INC.
STATEMENT OF INCOME
FOR THE TWELVE MONTHS MARCH 31, 1998
UNAUDITED
(Millions)
OPERATING REVENUE $0
-----------
OPERATING EXPENSES AND TAXES
Fuel Expense 2
Other Operating 185
Maintenance 9
Depreciation and amortization 9
Taxes, other than income taxes 6
Income taxes 1
-----------
212
-----------
OPERATING INCOME (212)
-----------
OTHER INCOME AND DEDUCTIONS 218
-----------
INCOME BEFORE INTEREST CHARGES 6
-----------
INTEREST CHARGES 6
-----------
NET INCOME FOR COMMON STOCK $0
===========
<PAGE>
CENTRAL AND SOUTH WEST SERVICES, INC.
STATEMENT OF RETAINED EARNINGS
FOR THE TWELVE MONTHS MARCH 31, 1998
UNAUDITED
(millions)
RETAINED EARNINGS AT MARCH 31, 1997 $0
Add: Net income (loss) for common stock 0
-----------
RETAINED EARNINGS AT MARCH 31, 1998 $0
===========
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
AND SUBSIDIARY COMPANIES
PRO FORMA ADJUSTMENTS TO BALANCE SHEETS
MARCH 31, 1998
UNAUDITED
(Millions)
DR CR
---------------------
CENTRAL AND SOUTH WEST CORPORATION AND SUBSIDIARY COMPANIES
None
CENTRAL AND SOUTH WEST CORPORATION (CORPORATE)
None
CENTRAL AND SOUTH WEST SERVICES, INC.
None
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
AND SUBSIDIARY COMPANIES
STATEMENT OF CHANGES
There have been no significant changes in the financial statements of
Central and South West Corporation and subsidiary companies subsequent to
March 31, 1998, other than in the ordinary course of business. However, on
May 28, 1998 CSW's shareholders voted on and approved the proposed merger with
American Electric Power Company, Inc.
<PAGE>
CENTRAL AND SOUTH WEST CORPORATION
AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The notes to consolidated financial statements included in Central and
South West Corporation's 1997 Combined Annual Report on Form 10-K are hereby
incorporated by reference and made a part of this report.
Page
Reference
1997 Combined Annual Report on Form 10-K pages 2-40 through 2-75
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<NUMBER> 002
<NAME> CENTRAL AND SOUTH WEST CORP.
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<OTHER-OPERATING-EXPENSES> 211
<TOTAL-OPERATING-EXPENSES> 212
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