UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Public Utility Holding Company Act of 1935
File No. 70-9119
Report Date: Janurary 1, 2000 to March 31, 2000
In the Matter of:
Central and South West Corporation
CSW Energy Services, Inc.
This report is filed under Rule 24 of the Public Utility Holding Company Act of
1935 by Central and South West Corporation (CSW) pursuant to an order issued by
the Securities and Exchange Commission (SEC) dated August 24, 1998 (HCAR
35-26910). This matter requires the filing of quarterly reports by CSW to the
commission, concerning the business activities and financings carried out
pursuant to the authorizations granted by this order, to contain the following
information: (a) balance sheets and income statements for CSW Energy Services,
Inc. (Services) as of the end of the reporting period covered; (b) a statement
showing (i) revenues of Services derived from the EV Business (TotalEV) in the
states comprising the Service Areas and (ii) revenues derived from the EV
Business in all other states, both during the period covered and cumulatively;
(c) a description of expenditures and investments made by CSW and/or Services in
EV Business activities, both during the period covered and cumulatively,
including details in tabular form as to : (i) the amount(s) invested, the
identity of all other corporations, parties or joint ventures involved, the
percentage of Services' investment in joint arrangements, and a description of
the activities being conducted, (ii) third party financing used to finance EV
Business activities conducted by any entity in which CSW and/or Services has a
direct or indirect ownership interest and (iii) financing obtained by CSW and/or
Services in order to engage in EV Business activities; (d) a description of any
state utility commission findings concerning EV Business activities or related
transactions, and (to be filed as exhibits) copies of all applications to, and
<PAGE>
orders issued by, such commissions pertaining to EV Business activities or
related transactions; and (e) a narrative description of Services' EV Business
activities during the reporting period, including but not limited to, narrative
information relating to all EV Business related contracts (i) with unrelated
parties and (ii) between or among CSW system companies; and, provided further,
that no later than August 15th of each year, Applicants will file balance sheets
for Services as of June 30th of that year and income statements for Services for
the six-month period ending June 30th of the year. This report covers the period
from January 1, 2000 through March 31, 2000.
The requested information for the reporting period January 1, 2000 through March
31, 2000, is as follows:
a) Services balance sheet as of March 31, 2000 and income statements for the
three and twelve months ended March 31, 2000 are attached as Exhibit 1 which
is being filed confidentially under Form SE.
b) i. Revenue derived from states within the service area:
For the reporting period ended March 31, 2000: $152,117
Inception to date: $608,541
ii. Revenue derived from states outside of the service area:
For the reporting period ended March 31, 2000: $322,911
Inception to date: $1,008,029
c) Description of expenditures and investments made by CSW and/or Services in
the EV business for the reporting period ended March 31, 2000 and, inception
to date, are attached in Exhibit 2.
d) State Commission findings concerning EV Business activities: None
e) Description of Services EV Business activities during the reporting period:
"CSW Total EV commenced its business of distributing electric
bicycles and related products following SEC approval in late August
of 1998. Through the first quarter of 2000, Total EV has placed over
5,000 environmentally-friendly e-bike products into the market place
since its inception. Approximately 400 independent bicycle shops in
34 states are retailing electric bicycles, scooters, and related
products distributed by Total EV.
At the close of the first quarter of 2000, Total EV has
agreements to distribute e-bikes and related products with 10
manufacturers and re-sellers: Currie Technologies (electric bikes,
scooters and conversion kits); ZAPWORLD.com, formerly ZAP Power
Systems (electric bikes, adult three wheelers, scooters, and
conversion kits); Condor Industries (electric bicycles); Montague
<PAGE>
Bicycles (electric folding bicycles); Bikit (conversion kits); The
Electric Transportation Company (electric bicycles and electric
folding bikes); Merida Bicycles (electric bicycles); and EV Rider
(electric scooters); Heinzmann Motors (electric bikes and conversion
kits); and HCF (electric scooters). Negotiations are under way with
several other electric bicycle and scooter manufacturers for the
rights to distribute their products. No contracts are in place with
any other unrelated parties or among CSW system companies."
<PAGE>
S I G N A T U R E
As requested by order of this Commission pursuant to the Public Utility
Holding Company Act of 1935, Central and South West Corporation has duly caused
this report to be signed on its behalf on this 10th day of May 2000.
Central and South West Corporation
CSW Energy Services, Inc.
/s/ Lawrence B. Connors
Lawrence B. Connors
Controller and Chief
Accounting Officer
<PAGE>
INDEX TO EXHIBITS
Exhibit
Number Exhibit
1 Balance sheet as of March 31, 2000 and income statements
for the three and twelve months ended March 31, 2000 are
filed confidentially under Form SE.
2 Description of expenditures and investments made by CSW
and/or Services in the EV Business for the reporting
period ended March 31, 2000 and inception to date.
EXHIBIT 1
Page 1 of 2
CSW Energy Services, Inc
Consolidated Balance Sheet
as of March 31, 2000
(unaudited)
Assets
Current Assets
Accounts Receivable - Affiliated $ 12,280
Accounts Receivable - Non-Affiliated/Trade 35,222,077
Materials and Supplies 3,145,133
Inventory - EV 825,019
Prepaid and Other 1,457,106
-----------------
Total Current Assets 40,661,615
-----------------
Property, Plant & Equipment
Furniture & Fixtures 6,963,803
Accumulated Depreciation/Amortization (63,809)
-----------------
Net Property, Plant & Equipment 6,899,994
-----------------
Other Assets
Equity and Other Investments 4,131,332
Deferred Charges and Other Assets 21,119,713
-----------------
Total Other Assets 25,251,045
Total Assets $ 72,812,654
=================
Liabilities & Equity
Current Liabilities
Accounts Payable - Affiliated $ 171,910
Accounts Payable - Non-Affiliated 41,184,882
Taxes Payable 2,474,326
Other Current Liabilities 1,862
-----------------
Total Current Liabilities 43,832,980
-----------------
Long-Term Debt
Notes Payable - Corp 33,645,765
Notes Payable - Other 250,000
-----------------
Total Long-Term Debt 33,895,765
-----------------
Other Deferred Credits 471,538
Equity
Capital Stock - Common 1,000
Retained (Loss) - Prior Years (2,756,039)
Retained Earnings/(Loss) - Current Year (2,632,590)
-----------------
Total Equity (5,387,629)
-----------------
Total Liabilities & Equity $ 72,812,654
=================
<PAGE>
EXHIBIT 1
Page 2 of 2
CSW Energy Services, Inc
Income Statements
(unaudited)
For the Three Months For the Twelve Months
Ended March 31, 2000 Ended March 31, 2000
-------------------- ---------------------
Revenues
Energy Services $ - $ 57,995
Unbilled Revenues - Energy Services - -
Lignite Sales - -
Electric Vehicles - TotalEV, net of returns 475,027 1,418,631
--------------- --------------
Total Revenue 475,027 1,476,626
Cost of Revenues
Energy Services Costs (1,426) 23,887
Lignite Costs - -
Electric Vehicles - TotalEV 392,427 1,223,126
--------------- --------------
Total Cost of Revenues 391,001 1,247,013
Gross Margin 84,026 229,613
General and Administrative Expense
Operations 175,591 1,581,924
Sales, Customer Service, & Marketing 106,306 310,488
Employee Benefits 31,328 71,659
Outside Services 130,676 266,913
Legal 731 37,831
CSWS Allocations 38,553 187,896
Rental 10,274 231,912
--------------- --------------
Total General and Administrative Expense 493,459 2,688,623
Operating Income/(Loss) (409,433) (2,459,010)
Taxes - Other than Income 17,601 64,940
Other (Income) / Deducts 3,075,947 (9,130,775)
--------------- --------------
EBITDA (3,502,981) 6,606,825
Depreciation Expense 25,245 86,526
Interest Expense - CSW Corp 521,087 1,397,937
--------------- --------------
Earnings Before Income Taxes (4,049,313) 5,122,362
Provision for Deferred Income Tax - (197,006)
State Income Tax Savings (250) 99,248
Federal Income Tax 1,416,973 (1,613,331)
--------------- --------------
Net Income $(2,632,590) $ 3,411,273
=============== ==============
Central and South West Corporation EXHIBIT 2
File No: 70-9119 Page 1 of 2
Report For Period: January 1, 2000 to March 31, 2000
C) Description of investments and expenditures made by CSW and/or Services in
the EV Business:
(i) Identify all other corporations, parties or joint ventures involved, the
percentage of Services' investment in joint arragements, and a
description of the activities being conducted:
INVESTMENTS
a)For the reporting period ending: March 31, 2000
<TABLE>
<CAPTION>
Parties Investing Percentage of Services' Description of Activities being
Investment Investment Conducted
------------------------------ ------------- ---------- --------------------------------
<S> <C> <C> <C> <C>
NONE 0% $ - N/A
</TABLE>
b)For the cumulative period ending: March 31, 2000
<TABLE>
<CAPTION>
Parties Investing Percentage of Services' Description of Activities being
Investment Investment Conducted
------------------------------ ------------- ---------- --------------------------------
<S> <C> <C> <C> <C>
NONE 0% $ - N/A
</TABLE>
EXPENDITURES
a)For the reporting period ending: March 31, 2000
<TABLE>
<CAPTION>
Parties Investing Percentage of Services' Description of Activities being
Investment Investment Conducted
------------------------------ ------------- ---------- --------------------------------
<S> <C> <C> <C> <C>
NONE 0% $ - N/A
</TABLE>
b)For the cumulative period ending: March 31, 2000
<TABLE>
<CAPTION>
Parties Investing Percentage of Services' Description of Activities being
Investment Investment Conducted
------------------------------ ------------- ---------- --------------------------------
<S> <C> <C> <C> <C>
NONE 0% $ - N/A
</TABLE>
<PAGE>
Central and South West Corporation EXHIBIT 2
File No: 70-9119 Page 2 of 2
Report For Period: January 1, 2000 to March 31, 2000
Item C (cont'd)
(ii)Third party financing used to finance EV Business activities:
a) For the reporting period ending:March 31, 2000
<TABLE>
<CAPTION>
Amount Purpose of
Name of Third party Financed Financing
--------------------------- ---------------- ---------------------------------
<S> <C> <C> <C>
NONE $ - N/A
</TABLE>
b) For the cumulative period ending March 31, 2000
<TABLE>
<CAPTION>
Amount Purpose of
Name of Third party Financed Financing
--------------------------- ---------------- ---------------------------------
<S> <C> <C> <C>
NONE $ - N/A
</TABLE>
(iii) Financing obtained by CSW and/or Services in order to engage in EV
Business activities:
The EV Business is totally financed through a combination of
internally generated funds and short-term debt by the parent company, Central
and South West Corporation.
