<PAGE> 1
UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY
HOLDING COMPANY ACT OF 1935
in the matter of
CENTRAL AND SOUTH WEST SERVICES, INC.
File No. 70-6802
Dallas, Texas 75266-0164
REPORT FOR PERIOD
January 1, 1994 to March 31, 1994
PURSUANT TO RULE 24
<PAGE> 2
I. CONSTRUCTION AND FUEL PROJECTS
Central and South West Corporation (CSW) is a public utility holding
company with four electric operating subsidiaries: Central Power and
Light Company (CPL); Public Service Company of Oklahoma (PSO);
Southwestern Electric Power Company (SWP) and West Texas Utilities
Company (WTU). Central and South West Services, Inc. (CSWS) performs at
cost, accounting, engineering, tax, legal, financial, marketing, fuel
planning, electronic data processing, centralized economic dispatching
of electric power and other services for CSW and its subsidiaries. CSWS
is required to file quarterly reports concerning: (a) description of
activities for each construction project; (b) method of accounting for
each project; (c) information on fuel projects and (d) information on
the project billing allocations.
(A) METHOD OF ACCOUNTING
The cost of materials, labor, outside services and other expenditures
directly attributable to construction of the jointly-owned projects are
paid by CSWS and SWP as agents for the participating companies.
Controlled-disbursement bank accounts for each project and the CSW money
pool facilitate funding of construction checks. Each company must
provide financing for its share of the construction costs.
A summary statement of activity is provided monthly by CSWS and SWP to
the participating companies. A series of work orders and account
numbers enables the participating companies to record their respective
ownership shares of construction work in progress, retentions payable,
accrued sales tax, vendor accounts payable and cash paid.
(B) CONSTRUCTION ACTIVITIES
COLETO CREEK UNIT #2
No new construction or engineering activities occurred on this project
during the quarter. This project has been suspended. CSWS is
continuing to provide contract administration, including contract
suspension costs, and maintenance of environmental permits during the
project's dormant period. No costs were incurred this quarter.
WALKER COUNTY UNIT #1
No new construction or engineering activities occurred on this project
during the quarter. This project has been suspended. No significant
activity occurred during the quarter other than payment of fees for
water rights and property taxes.
HIGH VOLTAGE DIRECT CURRENT LINES (HVDC)
SOUTH: In December 1985, all engineering and construction related work
on the south Texas HVDC Interconnection project was suspended.
EAST: In 1987, CSW received an order from the Federal Energy Regulatory
Commission (FERC) approving the East HVDC Tie. During 1992 SWP and CPL
entered into an agreement with Houston Lighting & Power Company and
Texas Utilities Electric Company to construct and operate an East Texas
HVDC transmission interconnection. This interconnection will consist of
a back-to-back converter station and 16 miles of 345 kilovolt
transmission line connecting transmission substations at SWP's Welsh
Power Plant and Texas Utilities Electric Company's Monticello Power
Plant near Mount Pleasant, Texas. Application for a Certificate of
Convenience and Necessity for the transmission interconnection was
approved by the Public Utility Commission of Texas on March 24, 1993. A
turn key contract for the provision and installation of the major
equipment was entered into with Siemens Energy and Automation, Inc. on
March 24, 1993. This 600,000 kilowatt project is scheduled to be
completed in 1995. Costs incurred in the first quarter of 1994 include
engineering consulting fees, home office costs, construction costs, and
the HVDC supplier's costs.
<PAGE> 3
EXPENDITURES BY PROJECT :
COLETO WALKER HVDC
CREEK COUNTY EAST (1)
QUARTER ENDED MARCH 31, 1994 (thousands)
CPL $-- $2 $ 932
PSO -- 1 ---
SWP -- 2 932
WTU -- 0 ---
TOTAL $-- $5 $1,864
(1) Excludes non-affiliated interests in these projects.
(C) FUEL PROJECTS
SOUTH HALLSVILLE: Work on this project consisted of making all the
payments relating to each lignite lease and overseeing the contract
miner's reclamation activities.
DOLET HILLS: Land and lignite lease maintenance as well as advance
royalty payments comprised the majority of the work on this project.
The property is now in production and advanced royalty payments are
being recouped.
WALKER/GRIMES: Land and lignite lease maintenance as well as advance
royalty payments comprised the majority of the work on this project.
KARNACK/WOODLAWN: Land and lignite lease maintenance as well as advance
royalty payments comprised the majority of the work on this project.
(D) BASIS FOR PROJECT BILLING ALLOCATIONS
SWP PROJECTS:
SOUTH DOLET
OWNERSHIP PERCENTAGE HALLSVILLE HILLS
SWP 85.936% 46.094%
NON-AFFILIATED ENTITIES 14.064% 53.906%
TOTAL 100.000% 100.000%
The South Hallsville project and the Dolet Hills project are in the
production stage.
<PAGE> 4
JOINT VENTURE PROJECTS:
KARNACK WALKER
ALLOCATION PERCENTAGES WOODLAWN GRIMES
CPL 30.87% 30.87%
PSO 28.08% 28.08%
SWP 30.67% 30.67%
WTU 10.38% 10.38%
TOTAL 100.00% 100.00%
ADMINISTRATIVE AND GENERAL ACTIVITIES:
Administrative and general activities included continuing maintenance of
a Land Management System. Expenditures for these activities, along with
legal, accounting, procurement, employee relations, treasury and
information services were $23,640 for the quarter.
EXPENDITURES BY PROJECT:
(thousands)
QUARTER ENDED SOUTH DOLET WALKER KARNACK
MARCH 31, 1994 HALLSVILLE HILLS GRIMES WOODLAWN
(1) (1)
CPL $ -- $ -- $33 $2
PSO -- -- 30 2
SWP 35 11 33 2
WTU -- -- 11 1
TOTAL $35 $11 $107 $7
(1) Excludes non-affiliated interests in these projects.
QTR ENDED
MARCH 31, 1994
BUDGET ACTUAL
SOUTH HALLSVILLE (1) $190 $35
DOLET HILLS (1) 0 11
WALKER GRIMES 39 107
KARNACK WOODLAWN 4 7
TOTAL $233 $160
(1) Excludes non-affiliated interests in these projects.
<PAGE> 5
SINCE
CUMULATIVE EXPENDITURES JANUARY 1, 1984
(thousands)
SOUTH HALLSVILLE (1) $13,237
DOLET HILLS (1) 8,319
WALKER GRIMES 15,953
KARNACK/WOODLAWN 5,377
ABANDONED PROJECTS 587
TOTAL $43,473
(1) Excludes non-affiliated interests in these projects.
II. FUEL PRODUCTION ACTIVITIES
CONTRACT
TOTAL TOTAL MINER'S TOTAL
TONS TONS DELIVERED COST OF
PRODUCED SHIPPED COST/TON FUEL/TON
(3)
QUARTER ENDED
MARCH 31, 1994
SOUTH HALLSVILLE (1) 721,296 708,294 $13.86 $14.27
DOLET HILLS (2) 274,797 261,202 23.53 24.39
(1) Lignite reserves are owned and controlled by SWP, Oklahoma
Municipal Power Authority (OMPA) and Northeast Texas Electric
Cooperative (NTEC) and mined by Sabine Mining Company. All tonnage was
delivered to the Henry W. Pirkey Power Plant which is also owned by SWP,
OMPA, and NTEC. The total cost of fuel is the sum of the contract
miner's delivered cost, lease maintenance and royalty costs, overhead
costs and amortization costs.
(2) Lignite reserves are owned and controlled by SWP, Central Louisiana
Electric Company, Inc. (CLECO) and OMPA. NTEC acquires its ownership
share from SWP once the lignite is delivered to the plant. The lignite
is mined by Dolet Hills Mining Venture. All tonnage was delivered to
the Dolet Hills Power Plant which is owned by SWP, CLECO, OMPA and NTEC.
The total cost of fuel is the sum of the miner's delivered cost, lease
maintenance and royalty costs, overhead costs and amortization costs.
(3) The cost per ton is estimated each month and then adjusted to
actual cost the following month.
<PAGE> 6
III. OIL AND GAS ACTIVITIES
CPL incurred expenditures primarily for the operation and development of
existing leases in south Texas.
QUARTER ENDED
MARCH 31, 1994
(thousands)
CPL $42
<PAGE> 7
SIGNATURE
As requested by order of the Securities and Exchange Commission pursuant
to the Public Utility Holding Company Act of 1935, Central and South
West Services, Inc. has duly caused this report to be signed on the 31st
day of May 1994.
By / S/ R. Russell Davis
R. Russell Davis
Controller
Central and South West Services, Inc.
1616 WOODALL RODGERS FREEWAY
P.O. BOX 660164
DALLAS, TEXAS 75266-0164
TELEPHONE (214) 754-1000
