UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
In the Matter of
SOUTHWESTERN ELECTRIC POWER COMPANY REPORT FOR PERIOD
Shreveport, Louisiana 71156 July 1, 1998 TO
September 30, 1998
PUBLIC SERVICE COMPANY OF OKLAHOMA PURSUANT TO RULE 24
Tulsa, Oklahoma 74102
CENTRAL POWER AND LIGHT COMPANY
Corpus Christi, Texas 78401
File No. 70-5741
This report is filed by Southwestern Electric Power Company (SWEPCO) on behalf
of itself, Public Service Company of Oklahoma (PSO) and Central Power and Light
Company (CPL) pursuant to Rule 24 promulgated under the Public Utility Holding
Company Act of 1935 by the Securities and Exchange Commission pursuant to
Sections 6(a), 7, 9(a) and 10 of said Act. SWEPCO's, PSO's and CPL's
Application-Declaration, as further amended by post-effective amendments, in
this matter proposed the filing by SWEPCO of quarterly reports to the
Commission, pursuant to Rule 24 of the Act, providing as to the activities
during each quarter: (a) total number of rail cars serviced by month for each of
SWEPCO, PSO and CPL; (b) the amount of expenditures by month for direct labor
cost, direct material cost, and indirect expenses for each of SWEPCO, PSO and
CPL; (c) computation by month of allocated cost to be shared by SWEPCO, PSO and
CPL on the basis of the "Cost Ratio", and (d) copies of the monthly reports
furnished by SWEPCO to PSO and CPL detailing the work and charges associated
with PSO and CPL rail cars assigned to the facility which were repaired during
the previous month, within the context of the Rail Car Maintenance Facility
Agreement between SWEPCO, PSO and CPL. This report covers the period July 1,
1998 through September 30, 1998.
<PAGE>
3rd QUARTER 1998
SWEPCO RAIL CAR MAINTENANCE FACILITY
RULE 24 REPORT
A. NUMBER OF RAIL CARS SERVICED
SWEPCO PSO CPL TOTAL
JULY 254 154 122 530
AUGUST 128 309 2 439
SEPTEMBER 288 245 1 534
TOTAL 670 708 125 1,503
B. AMOUNT OF EXPENDITURES
DETAIL SWEPCO PSO CPL TOTAL
DIRECT LABOR -
JULY $37,316.70 $9,343.01 $2,006.10 $48,665.81
AUGUST 22,350.01 25,459.10 394.05 48,203.16
SEPTEMBER 17,638.87 29,511.76 0.14 47,150.77
TOTAL $77,305.58 $64,313.87 $2,400.29 $144,019.74
DIRECT MATERIAL -
JULY $213,425.49 $88,525.68 $12,450.27 $314,401.44
AUGUST - - - 0.00
SEPTEMBER 76,962.78 - - 76,962.78
TOTAL $290,388.27 $88,525.68 $12,450.27 $391,364.22
OTHER DIRECT EXPENSES -
JULY ($103,108.23) $16,801.53 $3,348.24 ($82,958.46)
AUGUST 155,321.84 82,906.50 3,574.73 241,803.07
SEPTEMBER 78,279.59 65,507.64 2,021.74 145,808.97
TOTAL $130,493.20 $165,215.67 $8,944.71 $304,653.58
INDIRECT EXPENSES SHARED ON
COST RATIO
JULY $60,232.68 $15,080.50 $3,238.04 $78,551.22
AUGUST 30,625.47 34,885.73 539.96 66,051.16
SEPTEMBER 23,376.89 39,112.09 0.19 62,489.17
TOTAL $114,235.04 $89,078.32 $3,778.19 $207,091.55
TOTAL EXPENDITURES
JULY $207,866.64 $129,750.72 $21,042.65 $358,660.01
AUGUST 208,297.32 143,251.33 4,508.74 356,057.39
SEPTEMBER 196,258.13 134,131.49 2,022.07 332,411.69
TOTAL $612,422.09 $407,133.54 $27,573.46 $1,047,129.09
C. COMPUTATION OF COST RATIOS
SWEPCO PSO CPL TOTAL
JULY 1998
DIRECT LABOR $37,316.70 $9,343.01 $2,006.10 $48,665.81
COST RATIO 76.68% 19.20% 04.12% 100.00%
AUGUST 1998
DIRECT LABOR $22,350.01 $25,459.10 $394.05 $48,203.16
COST RATIO 46.37% 52.81% 00.82% 100.00%
SEPTEMBER 1998
DIRECT LABOR $17,638.87 $29,511.76 $0.14 $47,150.77
COST RATIO 37.41% 62.59% 00.00% 100.00%
<PAGE>
D. COPIES OF MONTHLY REPORTS
Copies of the monthly statements furnished by SWEPCO to PSO and CPL detailing
charges associated with PSO and CPL rail cars are attached as Exhibits 1, 2 and
3.
<PAGE>
S I G N A T U R E
As required by Order of this Commission pursuant to the Public Utility Holding
Company Act of 1935, Southwestern Electric Power Company has duly caused this
report to be signed on its behalf on this the 6th day of November, 1998.
SOUTHWESTERN ELECTRIC POWER COMPANY
By /s/ R. Russell Davis
R. Russell Davis
Controller and
Chief Accounting Officer
<PAGE>
INDEX TO EXHIBITS
Exhibit Transmission
Number Exhibit Method
1 July 1998 statement furnished by SWEPCO to Electronic
PSO and CPL detailing PSO and CPL's rail
car charges
2 August 1998 statement furnished by SWEPCO by to Electronic
PSO and CPL detailing PSO and CPL's rail
car charges
3 September 1998 statement furnished by SWEPCO to Electronic
PSO and CPL detailing PSO and CPL's rail
car charges
CENTRAL AND SOUTH WEST SERVICES, INC Exhibit 1
P.O. BOX 21928 TULSA, OKLAHOMA Page 1 of 4
TELEPHONE NUMBER (918) 594 - 2000
STATEMENT OF PARTICIPATION IN RAIL CAR MAINTENANCE FACILITY
AT ALLIANCE, NEBRASKA PER SWEPCO - PSO AGREEMENT
JULY 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 254 PSO154 CPL 122
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $213,425.49
PR4018 Stores Salvage - SWEPCO (134,695.55)
PR4101 Direct Labor to SWEPCO Coal Cars 26,851.26
PR4104 Direct Labor to Rework SWEPCO Material 10,465.44
PR4202 Ad Valorem Taxes - SWEPCO Coal Cars 0.00
PR4204 Ad Valorem Taxes - Facility - Direct - SWEPCO 0.00
PR4213 Employee Fringe Benefits - Direct Labor - SWEPCO 7,162.93
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 2,732.74
PR4238 Depreciation Expense - SWEPCO 0.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 20,716.23
PR4272 Switching Fees - SWEPCO 975.42
PR4277 Repainting Coal Cars - SWEPCO 0.00
------------
Total 100% SWEPCO Costs $147,633.96
============
COSTS ASSIGNED 100% TO CPL: CPL
PR 4003 Direct Material to CPL Coal Cars 12,450.27
PR 4014 Inventory Carrying Charges - CPL 170.00
PR 4021 Stores Salvage - CPL 0.00
PR4105 Direct Labor to CPL Coal Cars 1,852.55
PR4106 Direct Labor to Rework CPL Material. 153.55
PR4216 Ad Valorem Taxes - Facility - Direct - CPL 0.00
PR4217 Employee Fringe Benefits - Direct Labor - CPL 328.53
PR4218 Payroll taxes (FICA & UC) - Direct Labor - CPlL 150.28
PR4240 Depreciation Expense - CPL 0.00
PR4269 Outside Maintenance of CPL Coal Cars 2,452.89
PR4274 Switching Fees - CPL 246.54
PR4279 Repainting Coal Cars - CPL 0.00
------------
Total 100% CPL Costs $17,804.61
============
<PAGE>
Exhibit 1
Page 2 of 4
COSTS ASSIGNED 100% TO PSO: PSO
PR4002 Direct Material to PSO Coal Cars $88,525.68
PR4015 Inventory Carrying Charges - PSO 0.00
PR4019 Stores Salvage - PSO (4,280.79)
PR4102 Direct Labor to PSO Coal Cars 5,712.02
PR4103 Direct Labor to Rework PSO Material 3,630.99
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 1,794.57
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 684.66
PR4239 Depreciation Expense - PSO 15,016.51
PR4271 Outside Maintenance of PSO Coal Cars 1,498.52
PR4273 Switching Fees - PSO 0.00
PR4278 Repainting Coal Cars - PSO 0.00
------------
Total 100% PSO Costs $112,582.16
============
<PAGE>
Exhibit 1
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $8,503.89
PR4011 Small Tools 310.79
PR4012 Facility Maintenance - Material 1,168.07
PR4013 Sale of Crops (Cr.) 0.00
PR4016 Switch Engine Operation and Maintenance 1,038.96
PR4017 Equipment Operation and Maintenance 7,863.02
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 10,579.17
PR4111 Clerical 4,196.75
PR4112 Training and Safety 80.14
PR4113 General Shop Labor 3,441.81
PR4114 Facility Maintenance - Labor 7,275.82
PR4116 Switch Engine Operation and Maintenance 6,818.80
PR4201 Ad Valorem Taxes - Facility 0.00
PR4203 Taxes - Other 4,628.75
PR4206 Data Processing Charges 0.00
PR4207 General Office Overhead 5.35
PR4210 Employee Activities 0.00
PR4211 Employee Expenses 1,174.18
PR4212 Employee Fringe Benefits 6,438.58
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 0.00
PR4225 Maintenance of Facilities (Contracted) 3,146.17
PR4226 Office Supplies and Expenses 666.87
PR4232 Payroll Taxes (FICA & UC) - Other 2,376.99
PR4233 Special Services 0.00
PR4234 Utilities - Heat, Light, Power and Water 8,222.83
PR4235 Utilities - Telephone 614.28
PR4236 Vehicle Expense 0.00
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous 0.00
PR4262 Lease - Basic - All Except Coal Cars 0.00
PR4264 Lease - Supplemental Expenses - Facility 0.00
Total Costs Shared on Cost Ratio
{see computation below} - $78,551.22
------------
SWEPCO 76.68% $60,232.68
------------
CPL 4.12% $3,238.04
------------
PSO 19.20% $15,080.50
------------
<PAGE>
Exhibit 1
Page 4 of 4
Capital Recovery on Capital Expenditures not
Covered Under Lease Agreement {Cost Ratio} 2,088.06
------------
TOTAL COSTS FOR THE MONTH
SWEPCO $207,866.64
============
CPL $21,042.65
============
PSO $129,750.72
============
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $37,316.70 76.68 % SWEPCO
105, 106 Direct Labor CPL $2,006.10 4.12 CPL
102, 103 Direct Labor PSO 9,343.01 19.20 PSO
---------- ------
Total Direct Labor $48,665.81 100.00 %
========== ======
CENTRAL AND SOUTH WEST SERVICES, INC Exhibit 2
P.O. BOX 21928 TULSA, OKLAHOMA Page 1 of 4
TELEPHONE NUMBER (918) 594 - 2000
STATEMENT OF PARTICIPATION IN RAIL CAR MAINTENANCE FACILITY
AT ALLIANCE, NEBRASKA PER SWEPCO - PSO AGREEMENT
AUGUST 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 128 PSO 309 CPL 2
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $0.00
PR4018 Stores Salvage - SWEPCO 125,441.50
PR4101 Direct Labor to SWEPCO Coal Cars 13,059.61
PR4104 Direct Labor to Rework SWEPCO Material 9,290.40
PR4202 Ad Valorem Taxes - SWEPCO Coal Cars 0.00
PR4204 Ad Valorem Taxes - Facility - Direct - SWEPCO 0.00
PR4213 Employee Fringe Benefits - Direct Labor - SWEPCO 4,287.57
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 1,635.77
PR4238 Depreciation Expense - SWEPCO 0.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 22,027.64
PR4272 Switching Fees - SWEPCO 1,929.36
PR4277 Repainting Coal Cars - SWEPCO 0.00
------------
Total 100% SWEPCO Costs $177,671.85
============
COSTS ASSIGNED 100% TO CPL: CPL
PR4003 Direct Material to CPL Coal Cars $0
PR4014 Inventory Carrying Charges - CPL 986.08
PR4021 Stores Salvage - CPL 680.00
PR4105 Direct Labor to CPL Coal Cars 154.06
PR4106 Direct Labor to Rework CPL Material 239.99
PR4216 Ad Valorem Taxes - Facility - Direct - CPL 0.00
PR4217 Employee Fringe Benefits - Direct Labor - CPL 75.40
PR4218 Payroll taxes (FICA & UC) - Direct Labor - CPlL 28.77
PR4240 Depreciation Expense - CPL 0.00
PR4269 Outside Maintenance of CPL Coal Cars 1,804.48
PR4274 Switching Fees - CPL 0.00
PR4279 Repainting Coal Cars - CPL 0.00
------------
Total 100% CPL Costs $3,968.78
============
<PAGE>
Exhibit 2
Page 2 of 4
COSTS ASSIGNED 100% TO PSO: PSO
PR4002 Direct Material to PSO Coal Cars $0.00
PR4015 Inventory Carrying Charges - PSO 2,060.35
PR4019 Stores Salvage - PSO 57,073.90
PR4102 Direct Labor to PSO Coal Cars 21,765.93
PR4103 Direct Labor to Rework PSO Material 3,693.17
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 4,888.82
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 1,865.16
PR4239 Depreciation Expense - PSO 0.00
PR4271 Outside Maintenance of PSO Coal Cars 7,688.66
PR4273 Switching Fees - PSO 3,585.16
PR4278 Repainting Coal Cars - PSO 0.00
------------
Total 100% PSO Costs $102,621.15
============
<PAGE>
Exhibit 2
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $4,206.87
PR4011 Small Tools 376.89
PR4012 Facility Maintenance - Material 1,165.21
PR4013 Sale of Crops (Cr.) (6.72)
PR4016 Switch Engine Operation and Maintenance 780.53
PR4017 Equipment Operation and Maintenance 3,117.12
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 11,857.94
PR4111 Clerical 4,518.83
PR4112 Training and Safety 2,620.14
PR4113 General Shop Labor 3,428.02
PR4114 Facility Maintenance - Labor 8,709.11
PR4116 Switch Engine Operation and Maintenance 7,326.66
PR4201 Ad Valorem Taxes - Facility 0.00
PR4520 Land Credit (1,420.00)
PR4601 Sale of Crops, Credit (1,404.00)
PR4206 Data Processing Charges 574.40
PR4207 General Office Overhead 583.05
PR4211 Employee Expenses 1,285.37
PR4212 Employee Fringe Benefits 7,594.96
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 0.00
PR4225 Maintenance of Facilities (Contracted) 2,316.96
PR4226 Office Supplies and Expenses 606.44
PR4232 Payroll Taxes (FICA & UC) - Other 2,817.90
PR4233 Special Services 153.25
PR4234 Utilities - Heat, Light, Power and Water 4,244.89
PR4235 Utilities - Telephone 572.95
PR4236 Vehicle Expense 9.39
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous 15.00
PR4262 Lease - Basic - All Except Coal Cars 0.00
PR4264 Lease - Supplemental Expenses - Facility 0.00
Total Costs Shared on Cost Ratio
{see computation below} - $66,051.16
------------
SWEPCO 46.37% $30,625.47
------------
CPL 0.82% $539.96
------------
PSO 52.81% $34,885.75
------------
<PAGE>
Exhibit 2
Page 4 of 4
Capital Recovery on Capital Expenditures not
Covered Under Lease Agreement {Cost Ratio} 5,744.43
------------
TOTAL COSTS FOR THE MONTH
SWEPCO $208,297.32
============
CPL $4,508.74
============
PSO $143,251.33
============
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $22,350.01 46.37 % SWEPCO
105, 106 Direct Labor CPL 394.05 0.82 CPL
102, 103 Direct Labor PSO 25,459.10 52.81 PSO
---------- ------
Total Direct Labor $48,203.16 100.00 %
========== ======
CENTRAL AND SOUTH WEST SERVICES, INC Exhibit 3
P.O. BOX 21928 TULSA, OKLAHOMA Page 1 of 4
TELEPHONE NUMBER (918) 594 - 2000
STATEMENT OF PARTICIPATION IN RAIL CAR MAINTENANCE FACILITY
AT ALLIANCE, NEBRASKA PER SWEPCO - PSO AGREEMENT
SEPTEMBER 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 288 PSO 245 CPL 1
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $76,962.78
PR4018 Stores Salvage - SWEPCO 66,550.88
PR4101 Direct Labor to SWEPCO Coal Cars 13,868.62
PR4104 Direct Labor to Rework SWEPCO Material 3,770.25
PR4202 Ad Valorem Taxes - SWEPCO Coal Cars 0.00
PR4204 Ad Valorem Taxes - Facility - Direct - SWEPCO 0.00
PR4213 Employee Fringe Benefits - Direct Labor - SWEPCO 2,561.27
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 1,353.81
PR4238 Depreciation Expense - SWEPCO 0.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 70.91
PR4272 Switching Fees - SWEPCO 7,742.72
PR4277 Repainting Coal Cars - SWEPCO 0.00
------------
Total 100% SWEPCO Costs $172,881.24
============
COSTS ASSIGNED 100% TO CPL: CPL
PR4003 Direct Material to CPL Coal Cars $0.00
PR4014 Inventory Carrying Charges - CPL 1,219.10
PR4021 Stores Salvage - CPL 0.00
PR4105 Direct Labor to CPL Coal Cars 0.05
PR4106 Direct Labor toRework CPL Material 0.09
PR4216 Ad Valorem Taxes - Facility- Direct- CPL 0.00
PR4217 Employee Fringe Benefits - Direct Labor - CPL 0.00
PR4218 Payroll taxes (FICA & UC) - Direct Labor - CPlL 0.00
PR4240 Depreciation Expense - CPL 0.00
PR4269 Outside Maintenance of CPL Coal Cars 802.64
PR4274 Switching Fees - CPL 0.00
PR4279 Repainting Coal Cars - CPL 0.00
------------
Total 100% CPL Costs $2,021.88
============
<PAGE>
Exhibit 3
Page 2 of 4
COSTS ASSIGNED 100% TO PSO: PSO
PR4002 Direct Material to PSO Coal Cars $0.00
PR4015 Inventory Carrying Charges - PSO 1,898.09
PR4019 Stores Salvage - PSO 53,837.12
PR4102 Direct Labor to PSO Coal Cars 23,507.36
PR4103 Direct Labor to Rework PSO Material 6,004.40
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 4,583.18
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 2,244.09
PR4239 Depreciation Expense - PSO 0.00
PR4271 Outside Maintenance of PSO Coal Cars 111.15
PR4273 Switching Fees - PSO 2,834.01
PR4278 Repainting Coal Cars - PSO 0.00
------------
Total 100% PSO Costs $95,019.40
============
<PAGE>
Exhibit 3
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $1,918.71
PR4011 Small Tools 0.00
PR4012 Facility Maintenance - Material 494.19
PR4013 Sale of Scrap (Cr.) 0.00
PR4016 Switch Engine Operation and Maintenance 1,156.41
PR4017 Equipment Operation and Maintenance 4,405.65
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 11,237.89
PR4111 Clerical 4,116.43
PR4112 Training and Safety 473.69
PR4113 General Shop Labor 3,302.78
PR4114 Facility Maintenance - Labor 8,498.92
PR4116 Switch Engine Operation and Maintenance 11,617.28
PR4201 Ad Valorem Taxes - Facility 0.00
PR4520 Land, Credit 0.00
PR4601 Sale of Crops - Credit 0.00
PR4206 Data Processing Charges 574.40
PR4207 General Office Overhead 583.05
PR4211 Employee Expenses 1,325.96
PR4212 Employee Fringe Benefits 6,191.42
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 0.00
PR4225 Maintenance of Facilities (Contracted) 2,269.72
PR4226 Office Supplies and Expenses 691.29
PR4232 Payroll Taxes (FICA & UC) - Other 2,991.62
PR4233 Special Services 0.00
PR4234 Utilities - Heat, Light, Power and Water 6.80
PR4235 Utilities - Telephone 632.96
PR4236 Vehicle Expense 0.00
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous 0.00
PR4262 Lease - Basic - All Except Coal Cars 0.00
PR4264 Lease - Supplemental Expenses - Facility 0.00
Total Costs Shared on Cost Ratio
{see computation below} - $62,489.17
------------
SWEPCO 37.41% $23,376.89
------------
CPL 0.00% $0.19
------------
PSO 62.59% $39,112.09
------------
<PAGE>
Exhibit 3
Page 4 of 4
Capital Recovery on Capital Expenditures not
Covered Under Lease Agreement {Cost Ratio} 0.00
------------
TOTAL COSTS FOR THE MONTH
SWEPCO $196,258.13
============
CPL $2,022.07
============
PSO $134,131.49
============
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $17,638.87 37.41 % SWEPCO
105, 106 Direct Labor CPL 0.14 0.00 CPL
102, 103 Direct Labor PSO 29,511.76 62.59 PSO
---------- ------
Total Direct Labor $47,150.77 100.00 %
========== ======
