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
October 1, 1997 through December 31, 1997
PURSUANT TO RULE 24
<PAGE>
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 service ID's 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
This project has been suspended. Accordingly, no new construction or engineering
activities occurred on this project during the quarter. 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
This project has been suspended. Accordingly, no new construction or engineering
activities occurred on this project during the quarter. No costs were incurred
this quarter.
EXPENDITURES BY PROJECT :
COLETO WALKER
CREEK COUNTY
QUARTER ENDED DECEMBER 31, 1997 (thousands) (thousands)
CPL $ -- $ --
PSO -- --
SWP -- --
WTU -- --
TOTAL $ -- $ --
<PAGE>
EXPENDITURES BY PROJECT :
COLETO WALKER
CREEK COUNTY
TWELVE MONTHS ENDED DECEMBER 31, 1997 (thousands) (thousands)
CPL $ -- $ --
PSO -- --
SWP -- --
WTU -- --
TOTAL $ -- $ --
(C) FUEL PROJECTS
SOUTH HALLSVILLE: Work on this project consisted of overseeing the
contract miner's reclamation activities. Land and lignite lease maintenance
comprised the majority of the work on this project.
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. This lease was
terminated late in 1996.
KARNACK/WOODLAWN: Land and lignite lease maintenance as well as advance royalty
payments comprised the majority of the work on this project. This lease was
terminated late in 1996.
(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>
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 $ 8,413 for the fourth quarter.
EXPENDITURES BY PROJECT:
(thousands)
QUARTER ENDED SOUTH DOLET
DECEMBER 31, 1997 HALLSVILLE HILLS
(1) (1)
CPL $ -- $ --
PSO -- --
SWP 1,699 1,024
WTU -- --
TOTAL $ 1,699 $ 1,024
(1) Excludes non-affiliated interests in these projects.
TWELVE MONTHS ENDED SOUTH DOLET
DECEMBER 31, 1997 HALLSVILLE HILLS
(1) (1)
CPL $ -- $ --
PSO -- --
SWP 5,759 1,073
WTU -- --
TOTAL $ 5,759 $ 1,073
(1) Excludes non-affiliated interests in these projects.
<PAGE>
QUARTER ENDED TWELVE MONTHS ENDED
DECEMBER 31, 1997 DECEMBER 31, 1997
BUDGET ACTUAL BUDGET ACTUAL
SOUTH HALLSVILLE (1) $ 2,383 $ 1,699 $ 9,596 $ 5,759
DOLET HILLS (1) 89 1,024 356 1,073
TOTAL $ 2,472 $ 2,723 $ 9,952 $ 6,832
(1) Excludes non-affiliated interests in these projects.
SINCE
CUMULATIVE EXPENDITURES JANUARY 1, 1984
(thousands)
SOUTH HALLSVILLE (1) $ 28,185
DOLET HILLS (1) 11,076
ABANDONED PROJECTS 24,101
TOTAL $ 63,362
(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
DECEMBER 31, 1997
SOUTH HALLSVILLE (1) 992,629 986,055 $10.71 $11.28
DOLET HILLS (2) 219,820 215,045 $26.81 $27.71
TWELVE MONTHS ENDED
DECEMBER 31, 1997
SOUTH HALLSVILLE (1) 3,551,435 3,551,151 $11.99 $12.57
DOLET HILLS (2) 992,304 1,019,398 $23.43 $24.52
The above amounts exclude non-affiliated interests in these projects.
<PAGE>
(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.
III. OIL AND GAS ACTIVITIES
CPL incurred expenditures primarily for the operation and development of
existing leases in south Texas.
QUARTER ENDED TWELVE MONTHS ENDED
DECEMBER 31, 1997 DECEMBER 31, 1997
(thousands) (thousands)
CPL $ 0 $ 13
<PAGE>
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 27th day of February 1998.
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
