UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1999 and Ending December 31, 1999
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
CENTRAL AND SOUTH WEST SERVICES, INC.
(Exact Name of Reporting Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Date of Incorporation January 8, 1969 If not Incorporated, Date of Organization.
State or Sovereign Power under which Incorporated or Organized Texas
-----
Location of Principal Executive Offices of Reporting Company Tulsa, Oklahoma
---------------
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
R. Russell Davis Controller P.O. Box 21928 Tulsa, Oklahoma 74121-1928
- ---------------- ---------- -----------------------------------------------
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
CENTRAL AND SOUTH WEST CORPORATION
<PAGE>
(This page is intentionally left blank)
2 of 27 Pages
<PAGE>
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing. --Rule 94 provides that on or before the first day of May in
each calendar year, each mutual service company and each subsidiary service
company as to which the Commission shall have made a favorable finding pursuant
to Rule 88, and every service company whose application for approval or
declaration pursuant to Rule 88 is pending shall file with the Commission an
annual report on Form U-13-60 and in accordance with the Instructions for that
form.
2. Number of Copies. --Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report becomes necessary.
3. Period Covered by Report. --The first report filed by any company shall cover
the period from the date the Uniform System of Accounts was required to be made
effective as to that company under Rules 82 and 93 to the end of that calendar
year. Subsequent reports should cover a calendar year.
4. Report Format. --Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted of the same size as a sheet of the form or
folded to each size.
5. Money Amounts Displayed. --All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of dollars
or in hundred thousands of dollars, as appropriate and subject to provisions of
Regulation S-X (210.3-01(b)).
6. Deficits Displayed. --Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference in
footnotes. (Regulation S-X,210.3-01(c))
7. Major Amendments or Corrections. --Any company desiring to amend or correct a
major omission or error in a report after it has been filed with the Commission
shall submit an amended report including only those pages, schedules, and
entries that are to be amended or corrected. A cover letter shall be submitted
requesting the Commission to incorporate the amended report changes and shall be
signed by a duly authorized officer of the company.
8. Definitions. --Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. Organization Chart. --The service company shall submit with each annual
report a copy of its current organization chart.
10. Methods of Allocation. --The service company shall submit with each annual
report a listing of the currently effective methods of allocation being used by
the service company and on file with the Securities and Exchange Commission
pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed. --The service
company shall submit with each annual report a copy of the annual statement
supplied to each associate company in support of the amount of compensation for
use of capital billed during the calendar year.
3 of 27 Pages
<PAGE>
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account Number Number
Comparative Balance Sheet Schedule I 5-6
Service Company Property Schedule II 7(a)-(b)
Accumulated Provision for Depreciation and Amortization
of Service Company Property Schedule III 8
Investments Schedule IV 9(a)
Accounts Receivable from Associate Companies Schedule V 9(b)
Fuel Stock Expenses Undistributed Schedule VI 10
Stores Expense Undistributed Schedule VII 10
Miscellaneous Current and Accrued Assets Schedule VIII 11
Miscellaneous Deferred Debits Schedule IX 11
Research, Development, or Demonstration Expenditures Schedule X 11
Proprietary Capital Schedule XI 12
Long-Term Debt Schedule XII 13
Current and Accrued Liabilities Schedule XIII 14(a)
Notes to Financial Statements Schedule XIV 14(b)-(g)
Comparative Income Statement Schedule XV 15
Analysis of Billing - Associate Companies Account 457 16
Analysis of Billing - Nonassociate Companies Account 458 17
Analysis of Charges for Service - Associate and
Nonassociate Companies Schedule XVI 18(a)-(b)
Schedule of Expense by Department or Service Function Schedule XVII 19-20
Departmental Analysis of Salaries Accounts - All 21(a)
4(a) of 27 Pages
<PAGE>
Schedule or Page
Description of Schedules and Accounts Account Number Number
Outside Services Employed Account - All 21(b)-(c)
Employee Pensions and Benefits Account 926 22(a)
General Advertising Expenses Account 930.1 22(b)-(c)
Miscellaneous General Expenses Account 930.2 23
Rents Account 931 23
Taxes Other Than Income Taxes Account 408 24(a)
Donations Account 426.1 24(b)-(c)
Other Deductions Account 426.5 25(a)
Notes to Statement of Income Schedule XVIII 25(b)-(c)
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
Organization Chart 26(a)
Methods of Allocation 26(b)-(c)
Annual Statement of Compensation for Use of Capital Billed 26(d)
Signature Clause 27
4(b) of 27 Pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
SCHEDULE I - COMPARATIVE BALANCE SHEET
(thousands)
Give balance sheet of the Company as of December 31 of the current and prior
year.
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
- ------- -----------------------
1999 1998
------------ -----------
SERVICE COMPANY PROPERTY
301-311 Service company property (Schedule II) $123,789 $119,596
107 Construction work in progress (Schedule II) 77 4,474
------------ -----------
Total Property 123,866 124,070
108-111 Less: Accumulated provision for depreciation and
amortization of service company
property (Schedule III) 46,501 39,626
------------ -----------
Net Service Company Property 77,365 84,444
------------ -----------
INVESTMENTS
123 Investments in associate companies (Schedule IV) -- --
124 Other investments (Schedule IV) 1,184 1,392
------------ -----------
Total Investments 1,184 1,392
------------ -----------
CURRENT AND ACCRUED ASSETS
131 Cash 323 1,418
134 Special deposits -- --
135 Working funds 11 85
136 Temporary cash investments (Schedule IV) -- --
141 Notes receivable -- --
143 Accounts receivable 1,377 1,553
144 Accumulated provision for uncollectible
accounts -- --
146 Accounts receivable from associate
companies (Schedule V) 37,263 38,393
152 Fuel stock expenses undistributed (Schedule VI) -- --
154 Materials and supplies -- 23
163 Stores expense undistributed (Schedule VII) -- --
165 Prepayments 24,664 19,833
174 Miscellaneous current and accrued assets
(Schedule VIII) -- --
------------ -----------
Total Current and Accrued Assets 63,638 61,305
------------ -----------
DEFERRED DEBITS
181 Unamortized debt expense -- --
184 Clearing accounts 119 124
186 Miscellaneous deferred debits (Schedule IX) 17 --
188 Research, development, or demonstration
expenditures (Sch. X) -- --
190 Accumulated deferred income taxes 1,849 1,502
------------ -----------
Total Deferred Debits 1,985 1,626
------------ -----------
TOTAL ASSETS AND OTHER DEBITS $144,172 $148,767
============ ===========
5 of 27 Pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
SCHEDULE I - COMPARATIVE BALANCE SHEET
(thousands)
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
- ------- -----------------------------------
1999 1998
------------ -----------
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $100 $100
211 Miscellaneous paid-in-capital (Schedule XI) -- --
215 Appropriated retained earnings (Schedule XI) -- --
216 Unappropriated retained earnings (Schedule XI) -- --
------------ -----------
Total Proprietary Capital 100 100
------------ -----------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) -- --
224 Other long-term debt (Schedule XII) -- --
225 Unamortized premium on long-term debt -- --
226 Unamortized discount on long-term debt-debit -- --
------------ -----------
Total Long-Term Debt -- --
------------ -----------
CURRENT AND ACCRUED LIABILITIES
228 Accumulated provision for pensions and benefits 1,162 993
231 Notes payable -- --
232 Accounts payable 23,962 23,192
233 Notes payable to associate companies
(Schedule XIII) 90,173 97,103
234 Accounts payable to associate companies
(Schedule XIII) 1,180 1,225
236 Taxes accrued 1,743 1,221
237 Interest accrued 442 451
238 Dividends declared -- --
241 Tax collections payable 560 743
242 Miscellaneous current and accrued liabilities
(Schedule XIII) 2,850 1,358
------------ -----------
Total Current and Accrued Liabilities 122,072 126,286
------------ -----------
DEFERRED CREDITS
253 Other deferred credits 7,338 8,197
255 Accumulated deferred investment tax credits -- --
------------ -----------
Total Deferred Credits 7,338 8,197
------------ -----------
282 ACCUMULATED DEFERRED INCOME TAXES 14,662 14,184
------------ -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $144,172 $148,767
============ ===========
6 of 27 Pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE II - SERVICE COMPANY PROPERTY
(thousands)
<TABLE>
<CAPTION>
BALANCE AT RETIREMENTS OTHER BALANCE
BEGINNING OR CHANGES AT CLOSE
ACCOUNT DESCRIPTION OF YEAR ADDITIONS SALES (1) OF YEAR
- ------------------- ------- --------- ---------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
301 Organization $ -- $ -- $ -- $ -- $ --
303 Miscellaneous Intangible Plant 3,371 3,639 -- -- 7,010
304 Land and Land Rights 6,381 -- -- -- 6,381
305 Structures and Improvements 42,173 -- -- -- 42,173
306 Leasehold Improvements 6,230 -- -- -- 6,230
307 Equipment (2) 33,530 4,510 (3,873) -- 34,167
308 Office Furniture and Equipment 14,741 38 (120) -- 14,659
309 Automobiles, Other Vehicles
and Related Garage Equipment 194 -- -- -- 194
310 Aircraft and Airport Equipment 12,897 -- -- -- 12,897
311 Other Service Company
Property (3) 79 -- (1) -- 78
-----------------------------------------------------------------------------
SUB-TOTALS 119,596 8,187 (3,994) -- 123,789
107 Non-Billable Construction Work
in Progress (4) 4,474 77 -- (4,474) 77
-----------------------------------------------------------------------------
TOTALS $124,070 $8,264 $(3,994) $(4,474) $123,866
=============================================================================
</TABLE>
7(a) of 27 Pages
<PAGE>
SCHEDULE II - SERVICE COMPANY PROPERTY (Continued)
(thousands)
FOOTNOTES
(1) Provide an explanation of those changes considered material:
Description
Amount Capitalized cost associated with business unit reporting project $(3,396)
Transfer of Company Billing System Project costs to ESI (109)
Business unit reporting costs charged to expense (212)
Network Project (Capitalized) (602)
Other (155)
--------
$(4,474)
========
(2) Sub accounts are required for each class of equipment owned. The service
company shall provide a listing by sub account of equipment additions during the
year and the balance at the close of the year:
BALANCE
AT CLOSE
SUB ACCOUNT DESCRIPTION ADDITIONS OF YEAR
Account 307 - Equipment
Data Processing Equipment $2,847 $27,382
Communications Equipment 943 5,480
Other 720 1,305
-----------------------
TOTALS $4,510 $34,167
=======================
(3) Describe Other Service Company Property:
Refrigerators / Ice Makers $-- $10
Appliances -- 15
Industrial Hygiene Equipment -- 11
Power Wench -- 1
Portable Generator / Submersible Pump -- 1
Electric Trimmer -- 2
Projector -- 6
Aerial Work Platform -- 7
Power Punch Machine -- 3
Exercise Equipment -- 19
VCR / TV Combination -- 2
Desk Top Labeling System -- 1
-----------------------
TOTALS $-- $78
=======================
(4) Describe Non-Billable Construction Work in Progress:
Network Operating System NMS Umbrella 77 77
-----------------------
TOTALS $77 $77
=======================
7(b) of 27 Pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION
OF SERVICE COMPANY PROPERTY
(thousands)
<TABLE>
<CAPTION>
BALANCE AT RETIREMENTS OTHER BALANCE
BEGINNING OR CHANGES AT CLOSE
ACCOUNT DESCRIPTION OF YEAR ADDITIONS SALES (1) OF YEAR
- ------------------- -----------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
301 Organization $-- $-- $ -- $ -- $ --
303 Miscellaneous Intangible Plant 1,885 1,155 -- (63) 2,977
304 Land and Land Rights -- -- -- -- --
305 Structures and Improvements 9,163 1,459 (54) (223) 10,345
306 Leasehold Improvements 2,052 482 -- -- 2,534
307 Equipment 15,911 5,528 (3,817) 282 17,904
308 Office Furniture and Equipment 8,059 1,563 (32) 80 9,670
309 Automobiles, Other Vehicles
and Related Garage Equipment 165 31 -- -- 196
310 Aircraft and Airport Equipment 2,329 477 -- -- 2,806
311 Other Service Company
Property 62 8 (1) -- 69
----------------------------------------------------------
TOTALS $39,626 $10,703 $(3,904) $ 76 $46,501
==========================================================
</TABLE>
FOOTNOTES
(1) Provide an explanation of those changes considered material:
Reclassification of accumulated depreciation from account 307
(Equipment) to account 305 (Miscellaneous Intangible Plant).
8 of 27 Pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE IV - INVESTMENTS
(thousands)
Instructions: Complete the following schedule concerning investments.
Under Account 124 "Other Investments", state each investment separately, with
description, including, the name of issuing company, number of shares or
principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each investment
separately.
<TABLE>
<CAPTION>
BALANCE AT BALANCE AT
BEGINNING CLOSE
ACCOUNT DESCRIPTION OF YEAR OF YEAR
<S> <C> <C>
Account 123 - Investment in Associate Companies $-- $--
Account 124 - Other Investments
Purchase of Mortgages 252 110
Preston Trail Golf Club Purchase of Membership 88 88
Lakewood Country Club Purchase of Membership 16 16
Northwood Club Purchase of Membership 110 110
River Bend Golf and Country Club Purchase of Membership 5 5
Brook Hollow Golf Club Purchase of Membership 80 80
Las Colinas Sports Club Purchase of Membership 15 15
Bent Tree Country Club Purchase of Membership 41 41
Texas Stadium Purchase of Texas Stadium Box Seats 591 525
Gleneagles Country Club Purchase of Membership 68 68
Oak Cliff Country Club Purchase of Membership 2 2
Barton Creek Club Purchase of Membership 30 30
El Paso Country Club Purchase of Membership 6 6
Fairfax Country Club Purchase of Membership 27 27
Royal Oaks Country Club Purchase of Membership 2 2
Sports Club at Four Seasons Purchase of Membership 46 46
Canyon Creek Country Club 4 4
Trophy Club Country Club 9 9
------ ------
SUB-TOTALS 1,392 1,184
Account 136 - Temporary Cash Investments -- --
------ ------
TOTALS $1,392 $1,184
====== ======
</TABLE>
9(a) of 27 Pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
(thousands)
Instructions: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by sub account should be provided.
BALANCE AT BALANCE AT
BEGINNING CLOSE
ACCOUNT DESCRIPTION OF YEAR OF YEAR
Account 146 - Accounts Receivable from Associate Companies
Central and South West Corporation $7,165 $4,533
Central Power and Light Company 10,064 14,431
Public Service Company of Oklahoma 6,946 5,661
Southwestern Electric Power Company 7,873 7,466
West Texas Utilities Company 4,041 3,312
CSW Credit, Inc. 170 263
CSW Energy, Inc. 410 348
CSW International, Inc. 89 86
C3 Communications, Inc. 164 116
EnerShop, Inc. 91 29
CSW Leasing, Inc. 212 222
SEEBOARD 841 724
CSW Energy Services, Inc. 270 18
CSW Power Marketing, Inc. 57 54
------------ ------------
TOTALS $38,393 $37,263
============ ============
TOTAL
Analysis of Convenience or Accommodation Payments PAYMENTS
--------
Central and South West Corporation $2,726
Central Power and Light Company 2,564
Public Service Company of Oklahoma (1,737)
Southwestern Electric Power Company 584
West Texas Utilities Company 476
CSW Energy, Inc. 767
CSW International, Inc. 68
C3 Communications, Inc. 61
EnerShop, Inc. 2
CSW Leasing, Inc. (116)
SEEBOARD 330
CSW Energy Services, Inc. 245
------------
TOTAL PAYMENTS $5,970
============
The majority of the convenience payments consist of the payment of inter-company
billings from the associate companies to the services company, taxes, corporate
insurance, relocation expenses, industry dues, and deferred compensation
payments.
9(b) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
(thousands)
Instructions: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount attributable to each
associate company. Under the section headed "Summary" listed below give an
overall report of the fuel functions performed by the service company.
ACCOUNT DESCRIPTION LABOR EXPENSES TOTAL
Account 152 - Fuel Stock Expenses Undistributed $-- $-- $--
---------------------------
TOTALS $-- $-- $--
===========================
Summary: The service company provides overall management of fuel supply and
transportation procurement, as well as general administration. The associated
costs are expensed as incurred.
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
(thousands)
Instructions: Report the amount of labor and expenses incurred with respect to
stores expense during the year and indicate amount attributable to each
associate company.
ACCOUNT DESCRIPTION LABOR EXPENSES TOTAL
Account 163 - Billable Stores Expense Undistributed
Central Power and Light Company $730 $450 $1,180
Public Service Company of Oklahoma 481 335 816
Southwestern Electric Power Company 493 321 814
West Texas Utilities Company 231 165 396
CSW Corporation 311 74 385
Others 8 8 16
-----------------------------
TOTALS $2,254 $1,353 $3,607
=============================
Note: The overall procurement and management of materials and supplies is
provided by the service company. The associated costs are charged to Account
163 and billed out to the appropriate company.
10 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE VIII - MISCELLANEOUS CURRENT AND ACCRUED ASSETS
(thousands)
Instructions: Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
ACCOUNT DESCRIPTION OF YEAR OF YEAR
- ------------------- ------- -------
Account 174 - Miscellaneous Current and
Accrued Assets $-- $--
-----------------------
TOTALS $-- $--
=======================
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
(thousands)
Instructions: Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items in each class.
BALANCE AT BALANCE AT
BEGINNING CLOSE
ACCOUNT DESCRIPTION OF YEAR OF YEAR
- ------------------- ------- -------
Account 186 - Miscellaneous Deferred Debits
Non-Billable Deferred Project Costs $-- $17
-----------------------
TOTALS $-- $17
=======================
SCHEDULE X - RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
(thousands)
Instructions: Provide a description of each material research, development,
or demonstration project which incurred costs by the service corporation during
the year.
ACCOUNT DESCRIPTION AMOUNT
- ------------------- ------
Account 188 - Billable Research, Development, or
Demonstration Expenditures $--
------
TOTAL $--
======
11 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XI - PROPRIETARY CAPITAL
(dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
NUMBER OF SHARES PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED VALUE PER SHARE NO. OF SHARES TOTAL AMOUNT
- -------------- -------------- ---------- --------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Account 201 Common Stock Issued 10,000 $10 10,000 $100
</TABLE>
Instructions: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise to the reported
amounts.
<TABLE>
<CAPTION>
ACCOUNT DESCRIPTION AMOUNT
<S> <C>
Account 211 - Miscellaneous Paid-In Capital $--
Account 215 - Appropriated Retained Earnings --
----------
TOTAL $--
==========
</TABLE>
Instructions: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed or net loss
remaining from servicing nonassociates per the General Instructions of the
Uniform System of Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date declared and date
paid.
<TABLE>
<CAPTION>
BALANCE AT BALANCE AT
BEGINNING NET INCOME DIVIDENDS CLOSE
ACCOUNT DESCRIPTION OF YEAR OR (LOSS) PAID OF YEAR
- ------------------- ------- --------- ---- -------
<S> <C> <C> <C> <C>
Account 216 - Unappropriated Retained Earnings $-- $-- $-- $--
---------- ---------- ----------- ----------
TOTALS $-- $-- $-- $--
========== ========== =========== ==========
</TABLE>
12 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XII - LONG-TERM DEBT
(thousands)
Instructions: Advances from associate companies should be reported separately
for advances on notes, and advances on open accounts. Names of associate
companies from which advances were received shall be shown under the class and
series of obligation column. For Account 224 Other long-term debt provide the
name of creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
<TABLE>
<CAPTION>
TERM OF OBLIGATION BALANCE AT BALANCE AT
NAME OF CLASS & SERIES DATE OF INTEREST AMOUNT BEGINNING CLOSE
CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS OF YEAR
- -------- ------------- -------- ---- ---------- ------- --------- ---------- -------
<S> <C> <C> <C> <C> <C>
Account 223 -
Advances From
Associate Companies $-- $-- $-- $-- $--
Account 224 -
Other Long-Term Debt -- -- -- -- --
-------------------------------------------------------------------
TOTALS $-- $-- $-- $-- $--
===================================================================
</TABLE>
13 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
(thousands)
Instructions: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number of items
in each group.
BALANCE AT BALANCE AT
BEGINNING CLOSE
ACCOUNT DESCRIPTION OF YEAR OF YEAR
Account 233 - Notes Payable to Associate
Companies
Central and South West Corporation $97,103 $90,173
---------- ----------
TOTALS $97,103 $90,173
========== ==========
Account 234 - Accounts Payable to Associate
Companies
Central and South West Corporation $1,225 $1,180
---------- ----------
TOTALS $1,225 $1,180
========== ==========
Account 242 - Miscellaneous Current and
Accrued Liabilities
Payroll $1,358 $1,917
Directors' Deferred Compensation -- 247
Vacation Accrual -- 686
---------- ----------
TOTALS $1,358 $2,850
========== ==========
14(a) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
Instructions: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars as to any
significant contingent assets or liabilities existing at the end of the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
1. Summary of Significant Accounting Policies
Effective January 1, 1996 Central and South West Services, Inc. (Company or
CSWS) adopted the Federal Energy Regulatory Commission (FERC) Uniform System of
Accounts. Prior to 1996, the Company followed the Uniform System of Accounts for
Mutual Service Companies and Subsidiary Service Companies prescribed by the
Securities and Exchange Commission. The Company, as a member of the Central and
South West System (CSW System or CSW), performs, at cost, various accounting,
engineering, tax, legal, financial, electronic data processing, centralized
economic dispatching of electric power, and other services for the CSW System
companies.
Depreciation
For financial reporting purposes, provisions for depreciation of property are
computed by the Company using the straight-line method, generally at individual
rates applied to the various classes of depreciable property. The annual
composite rates averaged 9.57% for 1999 and 9.27% for 1998.
Federal Income Taxes
The Company, together with other members of the CSW System, files a consolidated
federal income tax return and participates in a tax sharing agreement with the
other members of the CSW System. The provision for deferred federal income taxes
resulted principally from the tax deductions under accelerated methods of
depreciation, as provided by federal income tax laws, being greater than these
expenses for book purposes.
2. Benefit Plans
Cash Balance and Non-qualified Pension Plans
CSW maintains a tax qualified, non-contributory defined benefit cash balance
pension plan covering substantially all CSW employees in the United States.
Under the cash balance formula, each participant has an account, for
recordkeeping purposes only, to which credits are allocated annually based on a
percentage of the participant's pay. The applicable percentage is determined by
age and years of vested service the participant has with the CSW System as of
December 31 of each year. The fair value of the plan assets are measured as of
September 30 of each year. Pension plan assets consist primarily of stocks,
short-term and intermediate-term fixed income investments.
In addition, the CSW System has a non-qualified excess benefit pension plan.
This plan is available to all pension plan participants who are entitled to
recieve a pension benefit from CSW which is in excess of the limitations imposed
on benefits by the Internal Revenue Code through the qualified plan.
14(b) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
As the plan sponsor, CSW will continue to reflect the cost of the pension plans
according to the provisions of SFAS No.87 and allocate such costs to each of the
participating employers. SFAS No.132, adopted by CSW in 1998 amended the
disclosure requirements of SFAS No.87 and SFAS No.88 and have been incorporated
in the following disclosures.
Pension Retirement Plans
Components of Net Periodic 1999 1998
Benefit Costs (thousands)
------------------------------
Service Cost $5,105 $5,611
Interest Cost 15,969 18,164
Expected return on plan assets (24,772) (26,097)
Amortization of:
Unrecognized transition obligation 383 407
Prior service cost (1,518) (1,610)
-------------- --------------
Net periodic benefit cost $(4,833) $(3,525)
============== ==============
Weighted-average assuptions as of year end
Discount rate 7.50% 6.75%
Rate of compensation increase 4.96% 4.96%
Expected return on plan assets 9.00% 9.00%
As permitted, the amortiztion of any prior service cost is determined using a
straight-line amortization of the cost over the average remaining period of
employees expected to receive benefits under the plan.
CSW Retirement Savings Plan
The CSW System Retirement Savings Plan is a defined contribution plan
offered to all full time employees and certain part time employees who meet plan
eligibility requirements. Company contributions to this plan totaled $4.1
million in 1999 and $3.6 million in 1998.
14(c) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
Post-retirement Benefits Other Than Pensions
CSW, adopted SFAS No.106 effective January 1, 1993. The transition obligation
established at adoption is being amortized over twenty years, with thirteen
years remaining. Prior to 1993, these benefits were accounted for on a pay-as-
you-go basis.
Postretirement Benefits Other Than Pensions
1999 1998
Change in Benefit Obligation (thousands)
------------------------------
Benefit obligation at beginning of year (1)$26,750 $18,961
Service Cost 2,328 1,464
Interest Cost 1,785 1,400
Amendments -- (462)
Benefit payments (959) (593)
Plan participants' contributions 115 51
Actuarial (gain) loss (3,596) 5,721
-------------- --------------
Benefit obligation at end of year $26,423 $26,542
============== ==============
(1) Includes adjustments to beginning of year as a result of
dissolution of ChoiceCom partnership.
Change in Plan Assets
Fair value of assets at beginning of year $12,344 $10,943
Actual return on plan assets 1,840 (421)
Employer contributions 3,593 2,364
Plan participants' contributions 115 51
Benefit payments (959) (593)
-------------- --------------
Fair value of plan assets at end of year $16,933 $12,344
============== ==============
Reconciliation of Funded Status
Funded status end of year $(8,592) $(13,346)
Unrecognized:
Transition Obligation 4,690 5,051
Actuarial (gain) loss 3,902 8,295
-------------- --------------
Prepaid (accrued) benefit cost $-- $--
============== ==============
14(d) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
Amounts Recognized in 1999 1998
Balance Sheets (thousands)
------------------------------
Prepaid benefit cost $1,980 $1,301
Accrued benefit (liability) (1,980) (1,301)
-------------- --------------
Net amount recognized $-- $--
============== ==============
Components of Net Periodic Benefit Cost
Service Cost $2,328 $1,464
Interest Cost 1,785 1,400
Expected Return on Plan Assets (955) (865)
Amortization of Unrecognized:
Transition Obligation 361 361
Net actuarial (gain) loss 74 20
-------------- --------------
Total Net Periodic Benefit Cost $3,593 $2,380
============== ==============
Weighted average assumptions as of year end
Discount rate 7.50% 6.75%
Expected return on plan assets 9.00% 9.00%
Health care cost trend rate 6.00% 6.50%
(Ultimate rate of 5.00% in 2001)
Effect of 1% Change in Assumed
Health Care Cost Trend Rate
1% Increase
Service cost plus interest cost $638
APBO 3,475
1% Decrease
Service cost plus interest cost $(521)
APBO (2,907)
As permitted, the amortization of any prior service cost is
determined using straight-line amortization of the cost over the
average remaining service period of employees expected to receive
benefits under the plan.
14(e) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
3. Financial Instruments
The following methods and assumptions were used to estimate the fair value
of each class of financial instruments for which it is practicable to
estimate fair value.
Cash and temporary cash investments.
The carrying amount approximates fair value because of the short maturity
of those instruments.
Notes payable to associate companies.
The carrying amount approximates fair value because of the short maturity
of those instruments.
The estimated fair value of the Company's
financial instruments are as follows:
1999
(thousands)
Carrying Amount Fair Value
Cash and temporary cash investments $323 $323
Notes payable to associate companies 90,173 90,173
1998
(thousands)
Carrying Amount Fair Value
Cash and temporary cash investments $1,418 $1,418
Notes payable to associate companies 97,103 97,103
14(f) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
4. Short-Term Financing
The CSW System uses short-term debt, primarily commercial paper, to meet
fluctuations in working capital requirements and other interim capital needs.
CSW has established a money pool to coordinate short-term borrowings for certain
subsidiaries. As of December 31, 1999 the CSW System had revolving credit
facilities totaling $1.4 billion to back up its commercial paper program. At
December 31, 1999, CSW had $1.3 billion outstanding in short-term borrowings.
The maximum amount of such short-term borrowings outstanding during the year,
which had a weighted average interest yield for the year of 5.5%, was $1.4
billion during December 1999. Of this amount, $97.1 million pertained to the
service company.
14(g) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XV - COMPARATIVE INCOME STATEMENT
(thousands)
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
---------- ----------
INCOME
456 Other electric revenues $218 $88
457 Services rendered to associate companies 301,283 284,242
458 Services rendered to non associate companies 1,291 2,138
419 Interest Income - Other 157 --
421 Miscellaneous income or loss 250 524
447 Impact studies 245 178
---------- ----------
TOTAL INCOME 303,444 287,170
---------- ----------
EXPENSES
500-559 Power production 25,469 20,447
560-579 Transmission 6,451 8,394
580-599 Distribution 9,170 13,933
902-903 Customer accounts expense 34,447 10,657
905 Miscellaneous customer accounts 275 --
906-917 Customer service & information 7,188 9,320
920 Salaries and wages 95,624 97,424
921 Office supplies and expenses 18,837 22,299
922 Administrative expense transferred - credit (47,920) (40,196)
923 Outside services employed 37,130 33,163
924 Property insurance 110 215
925 Injuries and damages (37) 1,153
926 Employee pensions and benefits 13,208 8,932
928 Regulatory commission expense 1,747 --
930.1 General advertising expenses 4,607 4,129
930.2 Miscellaneous general expenses 9,913 13,519
931 Rents 16,856 11,883
935 Maintenance of structures and equipment 5,113 5,995
403-405 Depreciation and amortization expense 10,780 9,690
408 Taxes other than income taxes 8,893 7,542
409 Income taxes 2,530 2,813
410 Provision for deferred income taxes (3,313) (1,394)
411 Provision for deferred income taxes - credit 3,444 262
416 Expense - Sports Lighting 3 --
417 Administrative - Business Venture 1,299 3,053
426.1 Donations 674 660
426.3 -
426.5 Other deductions 3,091 3,148
427 Interest on long-term debt -- 750
430 Interest on debt to associate companies 4,704 4,388
431 Other interest expense 181 112
---------- ----------
TOTAL EXPENSE - INCOME STATEMENT 270,474 252,291
---------- ----------
COST OF SERVICE - BALANCE SHEET
107 Construction work in progress 19,172 18,945
108 Retirement work in progress 71 192
163 Stores expense undistributed 3,607 3,604
165 Prepayments (478) 478
183 Preliminary survey and investigation charges 787 627
184 Clearing accounts 1,241 1,703
186 Miscellaneous deferred debits 8,536 9,147
188 Research, development, or demonstration expenses 34 183
---------- ----------
TOTAL COST OF SERVICE - BALANCE SHEET 32,970 34,879
---------- ----------
NET INCOME OR (LOSS) $-- $--
========== ==========
Note: All accounts on this schedule reflect amounts "As Billed".
15 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
ANALYSIS OF BILLING
ASSOCIATE COMPANIES - ACCOUNT 457
(thousands)
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
457 - 1 457 - 2 457 - 3
Central and South West Corporation $ 45,335 $ 3,703 $ 837 $ 49,875
Central Power and Light Company 80,610 10,441 1,464 92,515
Public Service Company of Oklahoma 45,247 6,246 851 52,344
Southwestern Electric Power Company 54,171 7,430 1,005 62,606
West Texas Utilities Company 25,248 3,514 481 29,243
CSW Credit, Inc. 1,224 132 20 1,376
CSW Energy, Inc. 1,901 369 37 2,307
CSW International, Inc. 602 87 11 700
C3 Communications, Inc. 1,918 190 34 2,142
CSW Leasing, Inc. 120 7 -- 127
CSW Power Marketing, Inc. 590 60 11 661
CSW Energy Services, Inc. 1,192 111 23 1,326
EnerShop, Inc. 1,161 163 22 1,346
SEEBOARD 4,078 561 76 4,715
--------------------------------------------
TOTALS $263,397 $33,014 $4,872 $301,283
============================================
16 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES - ACCOUNT 458
(thousands)
Instruction: Provide a brief description of the services rendered to each
nonassociate company.:
<TABLE>
<CAPTION>
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COST COST FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
458-1 458-2 458-3 458-4
Engineering Services:
<S> <C> <C> <C> <C> <C> <C>
1. Applied Global Cogen $143 $-- $-- $143 $52 $195
2. Casino Magic 24 -- -- 24 2 26
3. City of Collinsville 1 -- -- 1 -- 1
4. City of Minden 1 -- -- 1 -- 1
5. Electric Power Research Institute 207 -- -- 207 -- 207
6. Ethicon Facility 5 -- -- 5 1 6
7. Flowers Bakery 24 -- -- 24 37 61
8. Georgia Pacific 12 -- -- 12 86 98
9. Harrah's Casino 24 -- -- 24 40 64
10. HEB Grocery 1 -- -- 1 57 58
11. Honeywell 127 -- -- 127 225 352
12. Kelco 14 -- -- 14 20 34
13. Lone Star Steel -- -- -- -- 114 114
14. Valspar 3 -- -- 3 3 6
15. Other 3 -- -- 3 19 22
Environmental Lab Services:
1. General Electric Company 2 -- -- 2 -- 2
2. Gulf State Laboratories 5 -- -- 5 -- 5
3. Sabine Mining Company 29 -- -- 29 4 33
4. Other -- -- -- -- 6 6
-----------------------------------------------------------
TOTALS $625 $-- $-- $625 $666 $1,291
===========================================================
</TABLE>
17 of 27 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XVI - ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES
(thousands)
Instruction: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis of billing
schedules.
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE
DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
ACCOUNT DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL COST COST TOTAL
- ------- -------------------- -------- ------- -------- ------ -------- ------ ------ -------- -------
COST OF SERVICE - INCOME STATEMENT
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
456 Other Electric Revenues $ (217) $ - $ (217) $ - $- $ -- $ (217) $ - $ (217)
458 Services Rendered to
Nonassociate Companies (666) - (666) 666 - 666 - - -
421 Miscellaneous Income or Loss (195) (55) (250) - - - (195) (55) (250)
447 Impact Studies (245) - (245) - - - (245) - (245)
500-559 Power Production 22,996 2,452 25,448 21 - 21 23,017 2,452 25,469
560-579 Transmission 5,347 1,104 6,451 - - - 5,347 1,104 6,451
580-599 Distribution 8,572 596 9,168 2 - 2 8,574 596 9,170
902-903 Customer Accounts Expense 34,395 52 34,447 - - - 34,395 52 34,447
905 Customer Assistance 275 - 275 - - - 275 - 275
906-917 Customer Service & Information 6,505 683 7,188 - - - 6,505 683 7,188
920 Salaries and Wages 76,343 19,266 95,609 15 - 15 76,358 19,266 95,624
921 Office Supplies and Expenses 16,361 2,475 18,836 - - - 16,361 2,475 18,836
922 Administrative Expense (46,607) (1,313) (47,920) - - - (46,607) (1,313) (47,920)
923 Outside Service Employed 35,157 1,974 37,131 - - - 35,157 1,974 37,131
924 Property Insurance 110 - 110 - - - 110 - 110
925 Injuries and Damages (148) 111 (37) - - - (148) 111 (37)
926 Employee Pensions and Benefits 12,378 830 13,208 - - - 12,378 830 13,208
928 Regulatory Comm Exp 1,747 - 1,747 - - - 1,747 - 1,747
930.1 General Advertising Expense 4,522 85 4,607 - - - 4,522 85 4,607
930.2 Miscellaneous General Expense 9,883 30 9,913 - - - 9,883 30 9,913
931 Rents 15,939 917 16,856 - - - 15,939 917 16,856
935 Maintenance of Structures
and Equipment 4,570 542 5,112 - - - 4,570 543 5,113
403-405 Depreciation and Amortization
Expense 10,440 340 10,780 - - - 10,440 340 10,780
408 Taxes Other than Income Taxes 8,735 157 8,892 - - - 8,735 157 8,892
409 Income Taxes - 2,530 2,530 - - - - 2,530 2,530
410 Provision for Deferred Income Taxes - (3,313) (3,313) - - - - (3,313) (3,313)
411 Provision for Deferred Income
Taxes - Credit - 3,444 3,444 - - - - 3,444 3,444
416 Sports Lighting 3 - 3 - - - 3 - 3
417 Administrative - Business Venture 712 - 712 587 - 587 1,299 - 1,299
419 Interest Income - Other (147) (10) (157) - - - (147) (10) (157)
426.1 Donations 667 7 674 - - - 667 7 674
426.3-
426.5 Other Deductions 3,047 44 3,091 - - - 3,047 44 3,091
427 Interest On Long-Term Debt - - - - - - - - -
430 Interest On Debt To Associate
Companies 4,704 - 4,704 - - - 4,704 - 4,704
431 Other Interest Expense 181 - 181 - - - 181 - 181
-----------------------------------------------------------------------------------------
TOTAL COST OF SERVICE - INCOME STATEMENT $235,364 $32,948 $268,312 $1,291 $- $1,291 $236,655 $32,949 $269,604
-----------------------------------------------------------------------------------------
</TABLE>
(continued)
18(a) of 27 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XVI - ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES
(thousands)
(continued)
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE
DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
ACCOUNT DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL COST COST TOTAL
- ------- -------------------- -------- ------- -------- ------ -------- ------ ------ -------- -------
COST OF SERVICE - BALANCE SHEET
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
107 Construction Work in Progress $ 19,172 $ -- $ 19,172 $ - $- $ - $19,172 $ - $ 19,172
108 Retirement Work in Progress 71 - 71 - - - 71 - 71
163 Stores Expense Undistributed 3,568 39 3,607 - - - 3,568 39 3,607
165 Prepayments (478) - (478) - - - (478) - (478)
183 Preliminary Survey &
Investigation Charges 783 4 787 - - - 783 4 787
184 Clearing Accounts 1,219 22 1,241 - - - 1,219 22 1,241
186 Miscellaneous Deferred Debits 8,536 - 8,536 - - - 8,536 - 8,536
188 Research, Development, or
Demonstration Exp. 34 - 34 - - - 34 - 34
-----------------------------------------------------------------------------------------
TOTAL COST OF SERVICE - BALANCE SHEET $32,905 $65 $32,970 $ - $- $ - $32,905 $65 $ 32,970
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $268,269 $33,013 $301,282 $1,291 $- $1,291 $269,560 $33,014 $302,574
=========================================================================================
</TABLE>
18(b) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY
DEPARTMENT OR SERVICE FUNCTION
(thousands)
Instruction: Indicate each department or service function.
(See Instruction 01-3 General Structure of Accounting System:
Uniform System of Accounts).
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------------------------------------
TOTAL TECHNICAL
ACCOUNT DESCRIPTION OF ITEMS AMOUNT OVERHEAD EXECUTIVE SERVICES ADMIN FOSSIL PRODUCTION LEGAL
- ------- -------------------- -------- -------- --------- --------- ----- ------ ---------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
456 Other Electric Revenues $ (218) $ - $ - $ - $ - $ - $ (218) $ -
419 Interest Income - Other (157) - - - - - - -
421 Miscellaneous Income or Loss (250) (36) - - - - - -
447 Impact Studies (245) - - (245) - - - -
500-559 Power Production 25,469 - 555 160 217 4,284 14,992 -
560-579 Transmission 6,451 - 81 3,874 603 - 1,881 -
580-599 Distribution 9,170 - 40 2,950 206 - 1,304 -
902-903 Customer Accounts Expense 34,447 - - 141 7,437 - - -
905 Misc. Customer Accounts/Customer Assistance 275 - - 13 - - - -
906-917 Customer Service & Information 7,188 - - 470 737 - - -
920 Salaries and Wages 95,624 1,474 9,733 2,210 22,842 189 235 5,970
921 Office Supplies and Expenses 18,837 1,873 581 271 1,953 23 290 1,562
922 Administrative Expense (47,920) - - 3,021 (53,404) 382 - 6
923 Outside Service Employed 37,130 876 13 58 4,061 10 150 18,581
924 Property Insurance 110 - - - - - - -
925 Injuries and Damages (37) - - 1 335 - - -
926 Employee Pensions and Benefits 13,208 1 13 4 12,313 - 12 4
928 Regulatory Commission Expense 1,747 - - 37 159 - 13 1,387
930.1 General Advertising Expense 4,607 - - 1 - - - -
930.2 Miscellaneous General Expense 9,913 - 22 5 7,408 - 1 377
931 Rents 16,856 9,616 - - 450 - (1) 410
935 Maintenance of Structures and Equipment 5,113 2,185 - - 347 2 - 123
403-405 Depreciation and Amortization Expense 10,780 7,904 - - 2,876 - - -
408 Taxes Other than Income Taxes 8,893 1,182 - - 7,710 - - -
409 Income Taxes 2,530 - - - 2,530 - - -
410 Provision for Deferred Income Taxes (3,313) - - - (3,313) - - -
411 Provision for Deferred Income Taxes - Credit 3,444 - - - 3,444 - - -
417 Administrative - Business Venture 1,299 - - 2 - - 713 -
416 Cost and Expense of Merchandising 3 - - - - - - -
426.1 Donations 674 - 96 7 7 - - 14
426.3-
426.5 Other Deductions 3,091 - 397 22 92 10 54 2,061
430 Interest On Debt To Associate Companies 4,704 - - - 4,704 - - -
431 Other Interest Expense 181 13 - - 168 - - -
107 Construction Work in Progress 19,172 - - 7,720 1,057 155 1,990 130
108 Retirement Work in Progress 71 - - 6 6 12 46 -
163 Stores Expense Undistributed 3,607 - - 3,162 83 362 - -
165 Prepayments (478) - - - - - - -
183 Preliminary Survey & Investigation Charges 787 - - 784 - - - -
184 Clearing Accounts 1,241 - - 232 804 15 21 10
186 Miscellaneous Deferred Debits 8,536 - - - 329 1 2 4,436
188 Research, Development, or Demonstration Exp. 34 - - 34 - - - -
-------------------------------------------------------------------------------
TOTAL COST OF SERVICE $302,574 $25,088 $11,531 $24,940 $26,161 $5,445 $21,485 $35,071
===============================================================================
</TABLE>
19 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XVII - SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT
OR SERVICE FUNCTION
(thousands)
(continued)
Instruction: Indicate each department or service function.
(See Instruction 01-3 General Structure of Accounting System:
Uniform System of Accounts).
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
--------------------------------------------------------------------------------
CORPORATE INFORMATION CORPORATE CUSTOMER
ACCOUNT DESCRIPTION OF ITEMS SERVICES MARKETING SERVICES NUCLEAR AUDITS DEVELOPMENT FUEL SERVICES
- ------- -------------------- -------- --------- -------- ------- ------ ----------- ---- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
456 Other Electric Revenues $ - $ - $ - $ - $ - $ - $ - $ -
419 Interest Income - Other (157) - - - - - - -
421 Miscellaneous Income or Loss (214) - - - - - - -
447 Impact Studies - - - - - - - -
500-559 Power Production - 11 1 340 - 441 4,467 -
560-579 Transmission - - - - - 12 - -
580-599 Distribution 11 - 4,559 - - 95 - 4
902-903 Customer Accounts Expense 4 2 3,492 - - 58 - 23,313
905 Misc. Customer Accounts/Customer Assistance - - - - - 4 - 257
906-917 Customer Service & Information 1,376 247 - - - 1 - 4,357
920 Salaries and Wages 11,256 4,561 22,738 1 2,177 10,976 396 866
921 Office Supplies and Expenses 3,757 880 4,459 - 393 2,422 157 216
922 Administrative Expense 164 14 457 - 4 327 3 1,107
923 Outside Service Employed 2,432 1,773 4,206 - 285 3,962 585 140
924 Property Insurance 110 - - - - - - -
925 Injuries and Damages (374) - - - - - - -
926 Employee Pensions and Benefits 490 - 7 - 1 357 2 2
928 Regulatory Commission Expense 46 40 2 - - 59 - 3
930.1 General Advertising Expense 4,550 - - - - 57 - -
930.2 Miscellaneous General Expense 1,145 301 198 - 1 382 74 -
931 Rents 267 614 5,490 - - 7 2 1
935 Maintenance of Structures and Equipment 657 8 1,573 - - 171 - 48
403-405 Depreciation and Amortization Expense - - - - - - - -
408 Taxes Other than Income Taxes - - - - - - - -
409 Income Taxes - - - - - - - -
410 Provision for Deferred Income Taxes - - - - - - - -
411 Provision for Deferred Income Taxes - Credit - - - - - - - -
417 Administrative - Business Venture - 481 - - - - 102 -
416 Cost and Expense of Merchandising - - - - - - - 3
426.1 Donations 550 - - - 1 - - -
426.3-
426.5 Other Deductions 154 166 - 7 - 15 8 106
430 Interest On Debt To Associate Companies - - - - - - - -
431 Other Interest Expense - - - - - - - -
107 Construction Work in Progress 9 8 4,040 - - 127 278 3,658
108 Retirement Work in Progress - - 1 - - - - -
163 Stores Expense Undistributed - - - - - - - -
165 Prepayments (478) - - - - - - -
183 Preliminary Survey & Investigation Charges - - - - - 4 - -
184 Clearing Accounts 1 14 81 - - 17 31 15
186 Miscellaneous Deferred Debits 1,437 - 4 - - 967 1,031 -
188 Research, Development, or Demonstration Exp. - 329 - - - - - -
-------------------------------------------------------------------------------
TOTAL COST OF SERVICE $27,193 $ 9,449 $51,308 $348 $2,862 $20,461 $7,136 $34,096
===============================================================================
</TABLE>
20 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
DEPARTMENTAL ANALYSIS OF SALARIES
(thousands)
<TABLE>
<CAPTION>
DEPARTMENTAL SALARY EXPENSE
-------------------------------------------------------------------------------
INCLUDED IN AMOUNTS BILLED TO
-------------------------------------------------------------
NAME OF DEPARTMENT NUMBER OF
INDICATE EACH DEPARTMENT TOTAL PARENT OTHER NON NON PERSONNEL
OR SERVICE FUNCTION AMOUNT COMPANY ASSOCIATES ASSOCIATES BILLABLE END OF YEAR
- ------------------- ------ ------- ---------- ---------- -------- -----------
<S> <C> <C> <C> <C> <C> <C>
Administration $ 30,880 $ 5,775 $ 25,058 $ -- $ 47 199
Audit 1,484 323 1,161 -- -- 21
Corporate Development 8,414 1,802 6,601 -- 11 113
Corporate Services 8,393 1,835 6,542 -- 16 92
Customer Service 13,941 581 13,373 -- (13) 524
Executive 8,161 3,962 4,199 -- -- 28
Fossil Generation 2,887 275 2,612 -- -- 36
Fuels 3,525 146 3,379 -- -- 51
Information Services 19,824 1,736 16,392 -- 1,696 282
Legal 4,655 1,422 3,233 -- -- 52
Marketing 3,559 472 3,087 -- -- 64
Nuclear Engineering 221 15 206 -- -- 1
Production Engineering 10,048 625 9,280 142 1 144
Technical Services 11,867 948 10,977 -- (58) 194
------------------------------------------------------------------------------- -------------
TOTALS $127,859 $19,917 $106,100 $142 $1,700 1,801
=============================================================================== =============
</TABLE>
These amounts may include charges to accounts throughout the Income Statement
and Balance Sheet. Therefore, they cannot be identified in total with any
particular line on Schedule XV, but are distributed among various lines.
21(a) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
(thousands)
Instructions: Provide a breakdown of outside services employed. If the
aggregate amount paid to any one payee and included within one category is less
than $100,000, only the aggregate number and amount of all such payments
included within the sub account need be shown. Provide a brief description of
the service rendered by each vendor listed.
FROM WHOM PURCHASED SERVICE PROVIDED AMOUNT
- ------------------- ---------------- ------
Auditing Services
Arthur Andersen, LLP Auditing Services $1,022
---------
$1,022
---------
Legal Services
Barlow & Hardtner, L.C. Legal Services $208
Bracewell & Patterson Legal Services 520
Broyles & Pratt Legal Services 3,111
Christy & Viener Legal Services 3,418
Doerner, Saunders, Daniel & AndeLegal Services 590
Graves, Dougherty, Hearon & MoodLegal Services 123
Jones, Day, Reavis, and Pogue Legal Services 4,123
Milbank, Tweed, Hadley & McCoy Legal Services 2,901
Sheinfeld, Maley & Kay Legal Services 664
Sidley & Austin Legal Services 993
Stipe and Associates Legal Services 115
Stone, Pigman, Walther, Wittman &
Hutchenson L.L.P. Legal Services 506
Vinson & Elkins LLP Legal Services 2,383
Wagstaff, Alvis, Stubleman, Seamster,
and Longrace L.L.P. Legal Services 654
White, Coffey, Galt & Fite Legal Services 412
Wilkinson, Carmody & Gilliam Legal Services 517
Other (84) Legal Services 1,392
---------
$22,630
---------
Consulting Services
Al Stalter and Associates Consulting Services $406
Analysts International CorporatiConsulting Services 709
AYCO Corporation Consulting Services 112
Brothers and Co. Consulting Services 364
Business Information Technology Consulting Services 107
City of McAllen Consulting Services 240
Consultants of Dallas Consulting Services 128
Craig Stevens C. Consulting Services 159
Data Dynamics Inc. Consulting Services 1,069
Database Consultants Inc. Consulting Services 581
DAVOX Corporation Consulting Services 1,050
Deloitte & Touche Consulting Services 3,133
Economists Incorporated Consulting Services 341
Edison Electric Institute Consulting Services 202
Financo, Inc. Consulting Services 110
Hewitt Associates Consulting Services 244
IBM Consulting Services 209
Inventiva Consulting Services 204
ITRON Consulting Services 253
J Kennedy and Associates Consulting Services 165
James Martin & Company Consulting Services 1,284
KEMA Consulting Consulting Services 154
Market Strategies Inc. Consulting Services 842
Maxim Group Consulting Services 135
New Energy Associates Consulting Services 163
PriceWaterhouseCoopers Consulting Services 135
Provide Technologies Consulting Services 599
Read-Powland Associates Consulting Services 112
Reynolds & Reynolds Consulting Services 331
RHI Consulting Consulting Services 218
Soft-Tech Systems Consulting Services 124
SPR Systems & Programming Consulting Services 398
Sun Technical Services Inc. Consulting Services 653
UBICS Incorporated Consulting Services 438
Utilities International Consulting Services 2,627
Utility Data Resources Consulting Services 445
Other (178) 3,126
---------
$21,570
---------
21(b) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
OUTSIDE SERVICES EMPLOYED
(thousands)
Instructions: Provide a breakdown of outside services employed. If the
aggregate amount paid to any one payee and included within one category is less
than $100,000, only the aggregate number and amount of all such payments
included within the sub account need be shown. Provide a brief description of
the service rendered by each vendor listed.
FROM WHOM PURCHASED SERVICE PROVIDED AMOUNT
- ------------------- ---------------- ------
Temporary Personnel Services
Accountemps Temporary Office and Accounting Services $115
Accounting Principals Temporary Office and Accounting Services 135
Adecco TAD Technical Temporary Office and Accounting Services 122
First Word Staffing Temporary Office and Accounting Services 108
Imprimis Group Inc. Temporary Office and Accounting Services 551
Interim Personnel Temporary Office and Accounting Services 202
Key Temporary Temporary Office and Accounting Services 2,479
Rowland Tech Staffing Temporary Office and Accounting Services 406
Staff Tek Services, Inc. Temporary Office and Accounting Services 255
Vinson and Associates Temporary Office and Accounting Services 928
Other (45) Temporary Office and Accounting Services 745
-------
$6,046
-------
Other Outside Services
Aspect Telecommunications Telecommunications Services $426
AXS Marketing Research 339
Bank Of New York Financial Services 123
Bank of Oklahoma Banking Services 872
Butlers Janitorial Service Carpet Cleaning 155
Computational Systems Inc. Service Utility 425
Database Administrators Systems Administration 114
Electric Power Research
Institute Research 7,664
Entex PC workstation support 892
Equifax Credit Information Services 250
INNIS Company Management Training 125
IOS Capital Billing Support 188
Logical Resources, Inc. Research 180
Love Envelopes, Inc. Forms Printing 627
Mail Box Statement Mailing Services 133
Merrill Corporation Printing Services 175
Micron, Inc. Information Services 184
Moody's Investor Service Security Analysis and Ratings 106
Onesource Facility Services Maintenance 155
Powertech Labs, Inc. Impact Studies 108
Primedia Training Services 126
Scott Madden & Accociates Organization Design Support 396
Simuflite Train Aviation Training 115
SODEXHO Marriot USA Catering 194
Standard & Poor's Security Analysis and Ratings 113
Teknekron Infoswitch Network Consulting 288
Trammel Crow Company Office Building Security 473
Ultimate Business
Solutions, Inc. Systems Programming 269
William Wood Lawn Maintenance Lawn Maintenance 174
World Wide Products Inc. Engineering Services 103
Xerox Corporation Network Consulting 214
Other (639) Various Services 10,561
-------
$26,267
-------
Total Outside Services $77,535
=======
These amounts summarize all outside services employed and may include charges
to accounts throughout the Income Statement and Balance Sheet. Therefore,
they cannot be identified in total with any particular line on Schedule XV,
but are distributed among various lines.
21(c) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
EMPLOYEE PENSIONS AND BENEFITS - ACCOUNT 926
(thousands)
Instructions: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited to $25,000.
DESCRIPTION AMOUNT
Pension (1) $(4,822)
Retirement Savings Plan 4,083
Medical 9,166
Educational Assistance 254
Employee Awards and Events Program 62
Job Incentive Credits (575)
Accidental Death and Disability 62
Group Life 70
Long Term Disability 750
Retired Employee Benefits 3,593
Outplacement Services 100
Executive Benefits 30
Health and Fitness Programs 42
Other 393
---------
TOTAL $13,208
=========
FOOTNOTES
(1) Effective July 1, 1997, CSW changed pension plan funding and benefit
calculation methods. The present values of accrued benefits under the existing
pension plan were converted to a "cash balance" pension plan. As a result of
these changes, the service company will continue to realize ongoing reductions
in operating and maintenance expenses related to its pension plan. (See Note 2
Benefit Plans for further information related to pensions.)
22(a) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
GENERAL ADVERTISING EXPENSE - ACCOUNT 930.1
(thousands)
Instructions: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according to the nature of
the advertising and as defined in the account definition. If a particular class
includes an amount in excess of $3,000 applicable to a single payee, show
separately the name of the payee and the aggregate amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
- ----------- ------------- ------
General Advertising Abilene Reporter News $13
Beach to Bay Relay Marathon 3
Bell South 3
Bill Welch Photography 8
Brother & Company 89
Corpus Christi Caller Times 50
D Magazines 6
Dallas Business Association 5
Dallas Mavericks 29
EL Defensor 6
Elite Home & Lifestyle, Inc. 5
Golden Banner Press, Inc. 147
GTE Southwest 10
Inventiva 183
J L Media, Inc. 1,193
KJRH 2 Tulsa 5
KTBS, Inc. 20
Langdon Publishing 12
MCMedia, L.L.C. 5
Meek's Lithographic Company 24
Moore Syndication 4
National Theatre for Children 7
National Yellowpages Direct 266
Oklahoma Press Services, Inc. 253
Oliver Publications, Inc 4
Outdoor Placement of Texas 324
Pabst Creative Communications 33
Pioneer Telephone 3
Power House Advertising 125
Progressive Marketing 475
Public Strategies 4
Read-Poland Associates 29
San Patricio Publishing Co. 4
Standard Times 8
Team Azteca 40
Tower Publishing, Inc. 3
Other (133) 47
----------
SUB-TOTAL $3,445
----------
22(b) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
GENERAL ADVERTISING EXPENSE - ACCOUNT 930.1
(thousands)
DESCRIPTION NAME OF PAYEE AMOUNT
- ----------- ------------- ------
Recruiting and Empolyment Indepth Profile Inc. $3
Advertising JWG Associates 42
World Publishing Company 5
Other (52) 9
----------
SUB-TOTAL $59
----------
Public Relations Abilene Reporter News $3
American Enterprise, Inc. 7
Ark-La-Tex Hockey Club, L.L.C. 7
Azteca Sports 45
Brothers & Company 50
Corpus Christi Caller Times 13
D Magazine 5
Dallas Mavericks 31
Dallas Morning News 10
Global Media Co. 30
Inventiva 12
J L Media, Inc. 9
Langdon Publishing 9
Nosotros Magazine 3
Oklahoma Today 7
Outdoor Placement of Texas 15
Pabst Creative Communcations 61
Power House Advertising 22
Progressive Marketing 27
Standard Times 513
Tulsa Kids 5
Tulsa Oilers Hockey, Inc. 5
Tulsa World 4
University of Tulsa 10
USS Lexington Memorial 4
Other (197) 196
----------
SUB-TOTAL $1,103
----------
TOTAL $4,607
==========
22(c) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
MISCELLANEOUS GENERAL EXPENSES - ACCOUNT 930.2
(thousands)
Instructions: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses" classifying such expenses according to their
nature. Payments and expenses permitted by Section 321(b)(2) of the Federal
Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. 441
(b)(2)) shall be separately classified.
DESCRIPTION AMOUNT
Membership Fees and Dues $7,713
Relocation Expenses 525
Trustee, Registrar, and Transfer Agent Fees 623
Directors' Fees and Expenses 343
Annual Report Expenses 299
Corporate Financial Rating Fees 405
Other 5
---------
TOTAL $9,913
=========
RENTS - ACCOUNT 931
(thousands)
Instructions: Provide a listing of the amount included in Account 931, "Rents",
classifying such expenses by major groupings of property, as defined in the
account definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
Office Space Rent $9,742
Offsite Storage Space Rent 14
Computer Timesharing Rent 97
Computer Software Rent 4,067
Computer Equipment Rent 1,651
Office Equipment Rent 739
Other Miscellaneous Rent 546
---------
TOTAL $16,856
=========
23 of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
TAXES OTHER THAN INCOME TAXES - ACCOUNT 408
(thousands)
Instructions: Provide an analysis of Account 408 "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than U.S. Government
taxes, and (2) U.S. Government taxes. Specify each of the various kinds of taxes
and show the amounts thereof. Provide a subtotal for each class of tax.
DESCRIPTION AMOUNT
Other Than U.S. Government Taxes
State Unemployment Taxes $128
Property, Franchise, Ad Valorem and Other Taxes 1,443
--------
SUBTOTAL 1,571
--------
U.S. Governmental Taxes
Social Security Taxes 7,214
Federal Unemployment Taxes 108
--------
SUBTOTAL 7,322
--------
TOTAL $8,893
========
24(a) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
DONATIONS - ACCOUNT 426.1
(thousands)
Instructions: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
- ----------------- ------------------- ------
African American
Businessmens, Assoc. Membership Dues for 1999 $5
Austin Lyric Opera Corporate Sponsor 5
Child Care Group Annual Donation 6
Circle Ten Council Boys Scouts Inner Circle Sponsorship 1999 and
Boy Scout Golf Classic 5
Communities Foundation Corporate Sponsorship 30
Cowboy Artists of America Museum Contribution for Organizational Support 9
Dallas 2012, Inc. Olympics Bid Contribution 5
Dallas Ambassadors Forum Sponsorship of 1999 Forum 10
Dallas Business Committee For
the Arts 1999 Membership Dues 5
Dallas CASA Corporate Sponsor 5
Dallas Museum of Art Corporate Partner 5
Dallas Opera Corporate Sponsor 15
Dallas Planners Association Annual Donation 10
Dallas Symphony Association, Inc. Annual Contribution 28
Dallas Theater Center Corporate Partner 10
Dallas Urban Leaders 1999 Membership Dues 10
Executive Leadership Council Membership Dues 8
Gary Niblett, Inc. Corporate Donor 3
Goodwill Industries, Inc. Corporate Sponsor 5
Greater Dallas Chamber of Commerce Annual Membership Dues 20
Greater Dallas Youth Orchestra Sponsorship of 10/24/99 Concert 6
Leadership Texas Sponsorship of 1999 Leadership Program
Partner Initiative 10
Lisa Landry Childrens Foundation 1999 Golf with the Legends Tournament 5
Medisend Corporate Contribution 5
National Alliance of Business 1999 Corporate Contribution 5
National Council for the Arts 1999 Pledge 5
National Paralysis Foundation 1999 Southwestern Ball Silver Sponsor 10
24(b) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
DONATIONS - ACCOUNT 426.1
(thousands)
Instructions: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
- ----------------- ------------------- ------
Nature Conservatory of Texas Underwrite Dallas Corporate
Conservation Leadership Award 5
Our Children, Inc. Sponsorship of Childrens Store in Dallas 10
Project Shelter Annual Golf Tournament 8
Square One Productions Corporate Contribution 6
Texas Govorners Council 1999 Banquet Donation 25
Texans for Judicial
Election Reform CSW Corporate Contribution for 2000 5
Texans for Lawsuit Reform Annual Donation 5
Texas Business and
Education Association Corporate Sponsor 5
Texas Council of
Economic Development Annual Donation for 1999 5
Texas Tech University Donation of Artwork 38
Texas Water Foul Conservatory Annual Contribution 5
Teaxes Women's Health Association To support 1999 cancer awareness forum 5
Trinity Improvement Corporate Gift 6
United Way of
Metropolitan Dallas, Inc. Corporate Contribution 76
University of Texas Southwestern Medical Foundation
(Southwestern Ball) 44
Winston Solar 1999 Challange 5
YMCA of Metropolitan Dallas Pledge for Capital Campaign 15
Young Concert Artists Corporate Contribution 5
Other (126) 159
------
TOTAL $674
======
24(c) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
OTHER DEDUCTIONS - ACCOUNTS 426.3 - 426.5
(thousands)
Instructions: Provide a listing of the amount included in Accounts 426.3
through 426.5, "Other Deductions", classifying such expenses according to their
nature.
DESCRIPTION NAME OF PAYEE AMOUNT
Expenditures for Certain Company employee and administrative $2,602
Civic, Political & costs for civic, political and
Related Activities related activities
Other Miscellaneous Deductions Company expense 489
------
TOTAL $3,091
======
25(a) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XVIII - NOTES TO STATEMENT OF INCOME
Instructions: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars as to any
significant increase in services rendered or expenses incurred during the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
The Data Center provides centralized computer services for all CSW System
companies. The following information is provided pursuant to a Securities
and Exchange Commission data request letter dated May 6, 1983.
(a)Aggregate Billings by the Data Center
The operating costs for the Data Center for the year ended December 31,
1999, were $7,595,300. See paragraph (b) for explanation of the 1999
billing procedure.
(b)Breakdown of Data Center Billings by CRU
The actual 1999 costs for the operation of the Data Center were
$7,595,300. Costs of operation of the Data Center were charged back to
the system companies based on their usage of the computer resources. CSWS
allocates its costs for computer services rendered to CSW System
companies as follows:
Computer Resource Unit (CRU) Component Simplification
CSWS utilizes the CRU, a measurement of computer services rendered to
allocate direct costs to the CSW companies. The CRU was previously made
up of forty components. CSWS, on April 1, 1990, reduced the number of
components making up the CRU to only three components: (a) tape storage
in terms of tape-days, which is used to allocate all tape related costs,
(b) disk storage in terms of track-days which is used to allocate all
disk related costs, and (c) CPU seconds which is used to allocate all
other processor related usage costs. Use of only three components
simplifies the computer billing process, reduces administrative costs and
makes the charges to the users clearer and easier to understand.
Usage Cost Allocation
Computer usage costs are allocated on the basis of two factors. A "usage"
portion is allocated based on the current number of CRUs used reflecting
incremental costs of utilizing the three CRU components. The remaining
"base" costs reflect the fixed costs of operating the data center and are
spread according to the CRU usage of each company.
The following page outlines the billing to companies separated into the
two components referenced above. It should be noted that one dollar of
usage cost equals one CRU.
25(b) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
For the Year Ended December 31, 1999
SCHEDULE XVIII - NOTES TO STATEMENT OF INCOME
(continued)
Usage Base Total
Company CRU's Billing Billing Billing
CPL 2,027,382 $2,027,382 $189,987 $2,217,369
PSO 1,174,925 1,174,925 232,541 1,407,466
SWEPCO 1,167,742 1,167,742 114,126 1,281,868
WTU 720,982 720,982 76,581 797,563
CSWS 1,595,251 1,595,251 294,835 1,890,086
CSW Energy 903 903 45 948
---------- ----------- ------------ -----------
TOTALS 6,687,185 $6,687,185 $908,115 $7,595,300
========== =========== ============ ===========
(c)Statement of Data Center Activities
The major activities of the Data Center during 1999 were the production
environment of Integrated Data Management System (IDMS) and Customer
Information Control System (CICS) for all of the system companies and Year
2K remediation activities.
The operating costs for 1999 included salaries, equipment expenses,
software services, disaster recovery, site rentals and general supplies.
25(c) of 27 pages
<PAGE>
--------------------------------------------------------------------
| Central and South West Services |
| Executive Summary Chart - December 31, 1999 |
--------------------------------------------------------------------
|
|
Chairman & Chief Exec Officer
|
|---------Dir Audits
|
|
-------------------------------------------------------------
| | |
Exec VP/General EVP/CFO Pres & Chief
Counsel | Operating Officer
| | |
| Controller VP AEP Merger ----------- |
VP Assoc Gen Treasurer |
Counsel/Corp Sec |
|
|
|
------------------------------------------------------------------
| | |
| Sr VP External Affairs SVP Electric Operations
| | ----- |
| CSW LA/AR-SWEPCO President |
| CSW Texas President |____ VP Business Opportunities
| President/PSO |
| VP Governmental Affairs |____ President/Energy Delivery
| VP Regulatory Affairs | |
| | VP Elect Del/T & D
| | EAS Project Executive
| |
| |____ President CSW Generation
| |
| |
| VP Engineering
| VP Fossil Generation
| VP Fuels
| VP Nuclear Plants
|
|
------------------------------------
|
|_________ SVP Cust Relations & Corp Dev
|
VP Customer Relations
VP Human Resources
26(a) of 27 pages
<PAGE>
METHODS OF ALLOCATION
Central and South West Services, Inc. requested and the Securities and Exchange
Commission granted on March 7, 1997, July 11, 1997*, November 7, 1997** January
23, 1998***and June 30, 1999**** the following 53 allocation methods. These
allocation methods distribute costs among the participating companies according
to the ratio of each company's applicable volumes to the total volume of all
participating companies.
1. #ARINVOICE NUMBER OF ACCOUNTS RECEIVABLE INVOICES****
2. #BANKACCTS NUMBER OF BANK ACCOUNTS
Deposit, Disbursement & Manager checking accounts
3. #CALCTRTEL NUMBER OF CALL CENTER TELEPHONES
Phones located at each OPCO's customer service phone center
4. #CELLPHONE NUMBER OF CELL PHONES/PAGERS
5. #CISCUSTML NUMBER OF CIS CUSTOMER MAILINGS
Inserts placed in electric bills
6. #CKSPRINTD NUMBER OF CHECKS PRINTED*
Checks issued to vendors
(could be several invoices on one check)
7. #CREDITCAR NUMBER OF CREDIT CARDS**
Company issued corporate credit cards
8. #COMMCUSTS NUMBER OF COMMERCIAL CUSTOMERS
Less than 1000 kw of load
9. #ELULTCUST NUMBER OF ELECTRIC ULTIMATE CUSTOMERS
Residential, Commercial, Industrial,
Public Street & Highway lighting, Railroads, Railways,
Interdepartmental Sales (FERC accounts 440-446 & 448)
10. #EMPLOYEES NUMBER OF EMPLOYEES
Full-time and Part-time (does not include contractors)
11. #GENPLTEMP NUMBER OF GENERATING PLANT EMPLOYEES
12. #GLTRANSAC NUMBER OF GENERAL LEDGER TRANSACTIONS
Lines of accounting distribution
13. #INDUSCUST NUMBER OF INDUSTRIAL CUSTOMERS
More than 1000 kw load
14. #HELPCALLS NUMBER OF INFORMATION SERVICES CALLS***
15. #JCATRANSA NUMBER OF JOB COST ACCOUNTING TRANSACTIONS
Lines of accounting distribution on Job Cost
Accounting Sub-system
16. #OFROUTERS NUMBER OF ROUTERS
Device that connects two or more Local Area Networks
17. #OFSERVERS NUMBER OF SERVERS
Large, fast-capacity computers
18. #PHCTCALLS NUMBER OF PHONE CENTER CALLS****
19. #RADIOSMOB NUMBER OF RADIOS (BASE/MOBILE/HANDHELD)
20. #REMITITEM NUMBER OF REMITTANCE ITEMS
Number of electric bill payments processed which cannot
be processed through the lock box
21. #REMOTTERM NUMBER OF REMOTE TERMINAL UNITS
SCADA system connector to control electric system
22. #RESIDCUST NUMBER OF RESIDENTIAL CUSTOMERS
23. #TELEPHONE NUMBER OF TELEPHONES
Includes all phone lines
24. #TRAVELTRN NUMBER OF TRAVEL TRANSACTIONS
Includes Hotel, Car Rental and Airline flights
25. #VEHICLESS NUMBER OF VEHICLES
Includes fleet and pool cars
26(b) of 27 pages
<PAGE>
METHODS OF ALLOCATION
(continued)
Central and South West Services, Inc. requested and the Securities and Exchange
Commission granted on March 7, 1997, July 11, 1997*, November 7, 1997** January
23, 1998***and June 30, 1999**** the following 53 allocation methods. These
allocation methods distribute costs among the participating companies according
to the ratio of each company's applicable volumes to the total volume of all
participating companies.
26. #VENDINVPT NUMBER OF VENDOR INVOICE PAYMENTS
Actual vouchers
27. #WORKSTATN NUMBER OF WORKSTATIONS
Number of personal computers
28. ALCOMMCHAN ACTIVE OWNED OR LEASED COMMUNICATION CHANNELS
29. AVGPKLD3YR AVERAGE PEAK LOAD FOR PAST THREE YEARS
30. KWHSALEULT KWH SALES
Each company's kilowatt-hour sales to ultimate customers
31. MMBTUBRALL PAST 3 MONTHS MMBTU'S BURNED (ALL FUEL TYPES)
32. MMBTUBRCOA PAST 3 MONTHS MMBTU'S BURNED (COAL ONLY)
33. MMBTUBRGAS PAST 3 MONTHS MMBTU'S BURNED (GAS TYPE ONLY)
34. MMBTUBROIL PAST 3 MONTHS MMBTU'S BURNED (OIL TYPE ONLY)
35. MMBTUSOLID PAST 3 MONTHS MMBTU'S BURNED (SOLID FUELS ONLY)
36. MWGENCAPAC MW GENERATING CAPACITY
37. MWHGENERAT MWH'S GENERATION
38. OVERHEADCR OVERHEAD CLEARING
39. PKAVGCUSAL AVERAGE OF PEAK LOAD/AVERAGE NUMBER CUSTOMERS/KWH SALES
Gives equal weighting to peak load, average number of
ultimate customers and
kilowatt-hour sales to ultimate customers
40. TLGROSSREV TOTAL GROSS REVENUES FOR THE PREVIOUS FOUR QUARTERS**
41. TCSWSB-INT TOTAL CSWS BILLING LESS INDIRECT COST AND INTEREST
Allocates costs among the participating companies based on
the percentage of company direct work orders billed to
each CSW System company
42. TFIXASSET$ TOTAL FIXED ASSET DOLLARS
43. TFIXAS-NU$ TOTAL FIXED ASSET DOLLARS - NUCLEAR
44. TGRUTIPLNT TOTAL GROSS UTILLITY PLANT (INCLUDES CWIP)
Each company's gross utility plant
45. TPOLEMILES NUMBER OF MILES OF TRANSMISSION LINES
46. TLASSET-NU TOTAL ASSETS LESS NUCLEAR PLANT
47. TTLASSETS$ TOTAL ASSET DOLLARS
Total Assets less: a/r affiliates; factored,interest
receivable affiliates; investments in subsidiaries;
money pool receivables
48. TTPKLOADLY TOTAL PEAK LOAD (PRIOR YEAR)
49. CSWSPMBILL CSWS PRIOR MONTH BILL
50. CSWS3MBILL CSWS PAST 3 MONTHS BILL
51. EVENSPREAD EVEN SPREAD OF CHARGE BY COMPANY
52. ___'3MBILL FUNCTIONAL DEPARTMENT'S PAST 3 MONTHS TOTAL BILL
53. DPOLEMILES NUMBER OF MILES OF DISTRIBUTION LINES
26(c) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
The following annual statement was supplied to each associate
company in support of the amount of compensation for use of capital billed
during 1999:
In accordance with Instruction 01-12 of the Securities and Exchange
Commission's Uniform System of Accounts for Mutual Service Companies and
Subsidiary Service Companies, Central and South West Services, Inc. submits the
following information on the billing of interest on borrowed funds to associated
companies for the year 1999:
A. Amount of interest billed to associate companies is contained on page
16, Analysis of Billing.
B. The basis for billing of interest to the associated companies is
based on the Service Company prior month bill.
26(d) of 27 pages
<PAGE>
ANNUAL REPORT OF Central and South West Services, Inc.
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange Commission
issued thereunder, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
Central and South West Services, Inc.
-------------------------------------------
(Name of Reporting Company)
By: /s/ R. Russell Davis
-------------------------------------------
(Signature of Signing Officer)
R. Russell Davis Controller
-------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 26, 2000
- ----------------------
<TABLE> <S> <C>
<ARTICLE> OPUR2
<CIK> 0000025944
<NAME> Central and South West Services
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 77,365
<TOTAL-INVESTMENTS> 1,184
<TOTAL-CURRENT-ASSETS> 63,638
<TOTAL-DEFERRED-DEBITS> 1,985
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 144,172
<TOTAL-PROPRIETARY-CAPITAL> 100
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 90,173
<OTHER-CURR-AND-ACCRUED-LIAB> 31,899
<TOTAL-DEFERRED-CREDITS> 7,338
<DEFERRED-INCOME-TAX> 14,662
<TOT-LIABIL-AND-PROPRIET-CAP> 144,172
<SERVICES-ASSOCIATE-COMPANIES> 301,283
<SERVICES-NON-ASSOCIATE-COMP> 1,291
<MISC-INCOME-OR-LOSS> 870
<TOTAL-INCOME> 303,444
<SALARIES-AND-WAGES> 127,859
<EMPLOYEE-PENSION-AND-BENEFIT> 13,208
<OTHER-EXPENSES> 162,377
<TOTAL-EXPENSES> 303,444
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 269,560
<TOTAL-EXPENSES-INDIRECT-COST> 33,014
<TOT-EXP-DIRECT-AND-INDIRECT> 302,574
<PERSONNEL-END-OF-YEAR> 1,801
</TABLE>
