UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
- ----------------------------------------------
In the matter of
CSW Energy, Inc. REPORT FOR PERIOD
Dallas, Texas 75266-0789 October 1, 1997 to
December 31, 1997
File No. 070-07758 PURSUANT TO RULE 24
This report is filed under Rule 24 of the Public Utility Holding Company
Act of 1935 by CSW Energy, Inc. ("CSW Energy"), a wholly owned subsidiary of
Central and South West Corporation ("CSW"). Under HCAR 35-26417, CSW Energy is
authorized to participate in cogeneration projects and to provide consulting
services with respect to IPPs. Attached is the information required pursuant to
HCAR 35-26417.
(1) A balance sheet as of the relevant report date. See Exhibit A.
(2) Income statements for the twelve months ended. See Exhibit B.
(3) Name, owner, and location of each IPP served by CSW Energy during the
quarter. None.
(4) The amount of compensation received for each IPP project. None.
(5) Information on intercompany transactions with CSW Energy related to CSW
Energy's consulting services, including (a) the name of each associate
company providing services, (b) a listing of services provided and (c)
the total dollar amount of services provided, broken down by associate
company. See Exhibit C.
<PAGE>
S I G N A T U R E
As requested by order of this Commission pursuant to the Public Utility
Holding Company Act of 1935, CSW Energy, Inc. has duly caused this report to be
signed on its behalf on this 2nd day of March, 1998.
CSW Energy, Inc.
/s/ Sandra S. Bennett
Sandra S. Bennett
Controller
CSW Energy, Inc.
Balance Sheet
DECEMBER 31, 1997
(Unaudited)
($000's)
ASSETS
Current Assets
Cash and cash equivalents $2,774
Accounts receivable 273
Prepaid expenses 67
--------
Total current assets 3,114
Investments In and Advances to Energy Projects 172,918
Notes Receivable - Affiliate 54,291
Other Assets
Construction in progress and project development costs 185,508
Other - net 27,083
--------
Total other assets 212,591
--------
Total assets $442,914
========
LIABILITIES AND SHAREHOLDER'S EQUITY
Current Liabilities
Accounts payable $17,909
Accrued liabilities and other 5,342
--------
Total current liabilities 23,251
Long Term Debt 199,845
Deferred Income Taxes 47,963
Other 63,026
--------
Total liabilities 334,085
Shareholder's Equity
Common stock 1
Additional paid-in-capital 108,120
Accumulated retained earnings 708
--------
Total shareholder's equity 108,829
--------
Total liabilities and shareholder's equity $442,914
========
CSW Energy, Inc.
Statements of Income
For the Twelve Months Ended December 31, 1997 & 1996
(Unaudited)
($000's)
Dec. 31, Dec. 31,
1997 1996
-------- --------
OPERATING REVENUE:
Equity in income from energy projects $15,805 $17,387
Operation and maintenance services 4,271 4,098
Other 1,162 282
-------- --------
Total operating revenue 21,238 21,767
OPERATING EXPENSES:
Salaries, wages, and benefits 5,186 5,145
Loss on construction contract -- 191
Operation and maintenance services 4,460 2,575
General and administrative 1,056 5,677
Nonrecoverable project development costs -- 6,187
-------- --------
Total operating expenses 10,702 19,775
-------- --------
INCOME FROM OPERATIONS 10,536 1,992
OTHER INCOME (EXPENSE)
Interest income 8,497 1,052
Interest expense (10,027) (9,846)
Other, net 2,922 (10,900)
-------- --------
Total other income (expense) 1,392 (19,694)
-------- --------
INCOME (LOSS) BEFORE INCOME TAXES 11,928 (17,702)
PROVISION (BENEFIT) FOR INCOME TAXES 4,766 (6,927)
-------- --------
Net income (loss) $7,162 $(10,775)
======== ========
CSW Energy, Inc.
Intercompany Service Transactions
For the Twelve Months Ended December 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Name Type of Service Amount
- ---------------------------------- ------------------------------- -------------
<S> <C> <C>
Central and South West Services, Inc. Salaries, overheads, and travel $2,772,116
(Wholly owned subsidiary of in support of CSW Energy, Inc.
Central and South West Corporation) projects.
Central Power and Light Company Salaries, overheads, and travel 29,067
(Wholly owned subsidiary of in support of CSW Energy, Inc.
Central and South West Corporation) projects.
Central and South West Corporation Net Interest on cash advances 3,350,604
(Parent) provided to CSW Energy, Inc.
</TABLE>
