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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
April 1, 1994 to June 30, 1994
PURSUANT TO RULE 24
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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 second
quarter of 1994 include engineering consulting fees, home
office costs, construction costs, and the HVDC supplier's
costs.
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EXPENDITURES BY PROJECT :
COLETO WALKER HVDC
CREEK COUNTY EAST (1)
QUARTER ENDED JUNE 30, 1994 (thousands)
CPL $-- $64 $1, 910
PSO -- 58 ----
SWP -- 64 1,910
WTU -- 22 ----
TOTAL $-- $208 $3,820
(1) Excludes non-affiliated interests in these projects.
COLETO WALKER HVDC
CREEK COUNTY EAST (1)
SIX MONTHS ENDED JUNE 30, 1994 (thousands)
CPL $-- $66 $2,842
PSO -- 59 ----
SWP -- 66 2,842
WTU -- 22 ----
TOTAL $-- $213 $5,684
(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.
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(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.
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
$14,458 for the quarter.
EXPENDITURES BY PROJECT:
(thousands)
QUARTER ENDED SOUTH DOLET WALKER KARNACK
JUNE 30, 1994 HALLSVILLE HILLS GRIMES WOODLAWN
(1) (1)
CPL $---- $ --- $86 $7
PSO ---- --- 78 6
SWP 4,390 (28) 85 7
WTU ---- --- 29 2
TOTAL $4,390 $(28) $278 $22
(1) Excludes non-affiliated interests in these projects.
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SIX MONTHS ENDED SOUTH DOLET WALKER KARNACK
JUNE 30, 1994 HALLSVILLE HILLS GRIMES WOODLAWN
(1) (1)
CPL $ ---- $ --- $119 $9
PSO ---- --- 108 8
SWP 4,425 (17) 118 9
WTU ---- --- 40 3
TOTAL $4,425 $(17) $385 $29
(1) Excludes non-affiliated interests in these projects.
QTR ENDED SIX MONTHS ENDED
JUNE 30, 1994 JUNE 30, 1994
BUDGET ACTUAL BUDGET ACTUAL
SOUTH HALLSVILLE (1) $175 $4,390 $365 $4,425
DOLET HILLS (1) --- (28) --- (17)
WALKER GRIMES 19 278 58 385
KARNACK WOODLAWN 2 22 6 29
TOTAL $196 $4,662 $429 $4,822
(1) Excludes non-affiliated interests in these projects.
SINCE
CUMULATIVE EXPENDITURES JANUARY 1, 1984
(thousands)
SOUTH HALLSVILLE (1) $17,627
DOLET HILLS (1) 8,291
WALKER GRIMES 16,231
KARNACK/WOODLAWN 5,398
ABANDONED PROJECTS 587
TOTAL $48,134
(1) Excludes non-affiliated interests in these projects.
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II. FUEL PRODUCTION ACTIVITIES
CONTRACT
TOTAL TOTAL MINER'S TOTAL
TONS TONS DELIVERED COST OF
PRODUCED SHIPPED COST/TON FUEL/TON
(3)
QUARTER ENDED
JUNE 30, 1994
SOUTH HALLSVILLE (1) 649,191 634,024 $17.00 $17.50
DOLET HILLS (2) 233,011 235,756 20.84 22.05
SIX MONTHS ENDED
JUNE 30, 1994
SOUTH HALLSVILLE (1) 1,370,487 1,342,318 $30.86 $31.77
DOLET HILLS (2) 507,808 496,958 44.37 46.44
The above amounts exclude non-affiliated interests in these
projects.
(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.
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III. OIL AND GAS ACTIVITIES
CPL incurred expenditures primarily for the operation and
development of existing leases in south Texas.
QUARTER ENDED SIX MONTHS ENDED
JUNE 30, 1994 JUNE 30, 1994
(thousands) (thousands)
CPL $78 $120
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SIGNATURE
As requested by oder 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 26th day of August
1994.
By : /s/ R. RUSSELL DAVIS
R. Russell Davis
Controller
Central and South West Services,
Inc.
2 West 2nd Street
P.O. Box 21928
Tulsa, Oklahoma 74121-1928
Telephone (918) 594-2000
