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 April 1, 1998 TO
June 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 April 1,
1998 through June 30, 1998.
<PAGE>
2nd QUARTER 1998
SWEPCO RAIL CAR MAINTENANCE FACILITY
RULE 24 REPORT
SWEPCO PSO CPL TOTAL
A. NUMBER OF RAIL CARS SERVICED
APRIL 233 0 0 233
MAY 361 0 0 361
JUNE 615 2 0 617
TOTAL 1,209 2 0 1,211
B. AMOUNT OF EXPENDITURES
DETAIL
DIRECT LABOR -
APRIL $40,848.69 $847.48 $10,179.68 $51,875.85
MAY 71,752.20 430.88 0.07 72,183.15
JUNE 50,072.00 498.04 -- 50,570.04
TOTAL $162,672.89 $1,776.40 $10,179.75 $174,629.04
DIRECT MATERIAL -
APRIL $165,286.27 $0.00 $0.00 $165,286.27
MAY 387,597.89 -- -- 387,597.89
JUNE 304,808.79 1,163.90 -- 305,972.69
TOTAL $857,692.95 $1,163.90 $0.00 $858,856.85
OTHER DIRECT EXPENSES -
APRIL ($14,874.64) $26,551.68 $1,887.59 $13,564.63
MAY (87,354.39) (4,388.74) 2,228.68 (89,514.45)
JUNE (85,873.00) 19,744.49 8,836.17 (57,292.34)
TOTAL ($188,102.03) $41,907.43 $12,952.44 ($133,242.16)
INDIRECT EXPENSES SHARED ON
COST RATIO
APRIL $46,462.49 $962.78 $11,583.02 $59,008.29
MAY 79,605.84 478.05 0.08 80,083.97
JUNE 66,169.51 658.15 -- 66,827.66
TOTAL $192,237.84 $2,098.98 $11,583.10 $205,919.92
TOTAL EXPENDITURES
APRIL $237,722.81 $28,361.94 $23,650.29 $289,735.04
MAY 451,601.54 (3,479.81) 2,228.83 450,350.56
JUNE 335,177.30 22,064.58 8,836.17 366,078.05
TOTAL $1,024,501.65 $46,946.71 $34,715.29 $1,106,163.65
C. COMPUTATION OF COST RATIO
APRIL 1998
DIRECT LABOR $40,848.69 $847.48 $10,179.68 $51,875.85
COST RATIO 78.74% 1.64% 19.62% 100.00%
MAY 1998
DIRECT LABOR $71,752.20 $430.88 $0.07 $72,183.15
COST RATIO 99.40% 0.60% 0.00% 100.00%
JUNE 1998
DIRECT LABOR $50,072.00 $498.04 $0.00 $50,570.04
COST RATIO 99.02% 0.98% 0.00% 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 5th day of August, 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 April 1998 statement furnished by SWEPCO to Electronic
PSO and CPL detailing PSO and CPL's rail
car charges
2 May 1998 statement furnished by SWEPCO by to Electronic
PSO and CPL detailing PSO and CPL's rail
car charges
3 June 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
APRIL 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 233 PSO 0 CPL 0
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $165,286.27
PR4018 Stores Salvage - SWEPCO (74,754.52)
PR4101 Direct Labor to SWEPCO Coal Cars 32,516.92
PR4104 Direct Labor to Rework SWEPCO Material 8,331.77
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 0.00
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 0.00
PR4238 Depreciation Expense - SWEPCO 0.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 59,877.37
PR4272 Switching Fees - SWEPCO 0.00
PR4277 Repainting Coal Cars - SWEPCO 0.00
----------------
Total 100% SWEPCO Costs $191,257.81
================
COSTS ASSIGNED 100% TO CPL: CPL
PR 4003 Direct Material to CPL Coal Cars 0.00
PR 4014 Inventory Carrying Charges - CPL 1,173.27
PR4021 Stores Salvage - CPL 0.00
PR4105 Direct Labor to CPL Coal Cars 74.02
PR4106 Direct Labor to Rework CPL Material. 10,105.66
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 718.05
PR4274 Switching Fees - CPL 0.00
PR4279 Repainting Coal Cars - CPL 0.00
----------------
Total 100% CPL Costs $12,071.00
================
<PAGE>
Exhibit 1
Page 2 of 4
COSTS ASSIGNED 100% TO PSO: PSO
PR4002 Direct Material to PSO Coal Cars $0.00
PR4015 Inventory Carrying Charges - PSO 2,451.47
PR4019 Stores Salvage - PSO 16,223.33
PR4102 Direct Labor to PSO Coal Cars 0.00
PR4103 Direct Labor to Rework PSO Material 847.48
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 0.00
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 0.00
PR4239 Depreciation Expense - PSO 0.00
PR4271 Outside Maintenance of PSO Coal Cars 7,697.98
PR4273 Switching Fees - PSO 0.00
PR4278 Repainting Coal Cars - PSO 0.00
----------------
Total 100% PSO Costs $27,220.26
================
<PAGE>
Exhibit 1
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $10,326.65
PR4011 Small Tools 1,057.73
PR4012 Facility Maintenance - Material 1,294.19
PR4601 Sale of Crops (Cr.) 780.00
PR4016 Switch Engine Operation and Maintenance 1,535.64
PR4017 Equipment Operation and Maintenance 2,222.76
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 0.00
PR4111 Clerical 2,819.26
PR4112 Training and Safety 1,463.80
PR4113 General Shop Labor 3,731.70
PR4114 Facility Maintenance - Labor 7,015.94
PR4116 Switch Engine Operation and Maintenance 4,512.04
PR4201 Ad Valorem Taxes - Facility 0.00
PR4203 Taxes - Other 0.00
PR4206 Data Processing Charges 574.40
PR4207 General Office Overhead 627.21
PR4210 Employee Activities 0.00
PR4211 Employee Expenses 1,409.59
PR4212 Employee Fringe Benefits 361.81
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 0.00
PR4225 Maintenance of Facilities (Contracted) 2,975.00
PR4226 Office Supplies and Expenses 1,102.93
PR4232 Payroll Taxes (FICA & UC) - Other 0.00
PR4233 Special Services 0.00
PR4234 Utilities - Heat, Light, Power and Water 14,019.92
PR4235 Utilities - Telephone 739.50
PR4236 Vehicle Expense 56.14
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous 382.08
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} - $59,008.29
----------------
SWEPCO 78.74% $46,465.00
----------------
CPL 19.62% $11,579.29
----------------
PSO 1.64% $964.00
----------------
<PAGE>
Exhibit 1
Page 4 of 4
Capital Recovery on Capital Expenditures not
Covered Under Lease Agreement {Cost Ratio} 177.68
----------------
TOTAL COSTS FOR THE MONTH
SWEPCO $237,722.81
================
CPL $23,650.29
================
PSO $28,361.94
================
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $40,848.69 78.74% SWEPCO
102, 103 Direct Labor CPL $10,179.68 19.62 CPL
102, 103 Direct Labor PSO 847.48 1.64 PSO
------------- --------
Total Direct Labor $51,875.85 100.00%
============= ========
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
MAY 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 361 PSO 0 CPL 0
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $387,597.89
PR4018 Stores Salvage - SWEPCO (116,894.22)
PR4101 Direct Labor to SWEPCO Coal Cars 53,047.95
PR4104 Direct Labor to Rework SWEPCO Material 18,704.25
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 22,109.34
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 5,260.23
PR4238 Depreciation Expense - SWEPCO 0.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 255.66
PR4272 Switching Fees - SWEPCO 1,914.60
PR4277 Repainting Coal Cars - SWEPCO 0.00
----------------
Total 100% SWEPCO Costs $371,995.70
================
COSTS ASSIGNED 100% TO CPL: CPL
PR4003 Direct Material to CPL Coal Cars $0.00
PR4014 Inventory Carrying Charges - CPL 0.00
PR4021 Stores Salvage - CPL (40.03)
PR4105 Direct Labor to CPL Coal Cars 0.07
PR4106 Direct Labor to Rework CPL Material 0.00
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 2,268.71
PR4274 Switching Fees - CPL 0.00
PR4279 Repainting Coal Cars - CPL 0.00
----------------
Total 100% CPL Costs $2,228.75
================
<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 0.00
PR4019 Stores Salvage - PSO (4,567.60)
PR4102 Direct Labor to PSO Coal Cars 0.00
PR4103 Direct Labor to Rework PSO Material 430.88
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 82.58
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 3,150.00
PR4239 Depreciation Expense - PSO 0.00
PR4271 Outside Maintenance of PSO Coal Cars (3,440.07)
PR4273 Switching Fees - PSO 321.44
PR4278 Repainting Coal Cars - PSO 0.00
----------------
Total 100% PSO Costs ($4,022.77)
================
<PAGE>
Exhibit 2
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $4,877.10
PR4011 Small Tools 92.92
PR4012 Facility Maintenance - Material 1,001.67
PR4601 Sale of Crops (Cr.) (14.00)
PR4016 Switch Engine Operation and Maintenance 0.00
PR4017 Equipment Operation and Maintenance 3,888.18
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 18,174.77
PR4111 Clerical 6,184.04
PR4112 Training and Safety 469.99
PR4113 General Shop Labor 8,828.23
PR4114 Facility Maintenance - Labor 13,513.07
PR4116 Switch Engine Operation and Maintenance 7,476.30
PR4201 Ad Valorem Taxes - Facility 0.00
PR4203 Taxes - Other 0.00
PR4206 Data Processing Charges 0.00
PR4207 General Office Overhead 30.45
PR4210 Employee Activities 0.00
PR4211 Employee Expenses 2,898.87
PR4212 Employee Fringe Benefits 2,483.83
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 0.00
PR4225 Maintenance of Facilities (Contracted) 2,282.79
PR4226 Office Supplies and Expenses 991.72
PR4232 Payroll Taxes (FICA & UC) - Other 886.48
PR4233 Special Services 0.00
PR4234 Utilities - Heat, Light, Power and Water 5,519.41
PR4235 Utilities - Telephone 666.68
PR4236 Vehicle Expense 0.00
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous (168.54)
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} - $80,083.96
----------------
SWEPCO 99.40% $79,605.84
----------------
CPL 0.00% $0.08
----------------
PSO .60% $478.05
----------------
<PAGE>
Exhibit 2
Page 4 of 4
Capital Recovery on Capital Expenditures not
Covered Under Lease Agreement {Cost Ratio} 64.91
----------------
TOTAL COSTS FOR THE MONTH
SWEPCO $451,601.54
================
CPL $2,228.83
================
PSO ($3,479.81)
================
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $71,752.20 99.40% SWEPCO
102, 103 Direct Labor CPL 0.07 0.00 CPL
102, 103 Direct Labor PSO 430.88 0.60 PSO
------------- --------
Total Direct Labor $72,183.15 100.00%
============= ========
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
JUNE 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 615 PSO 2 CPL 0
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $304,808.79
PR4018 Stores Salvage - SWEPCO (124,423.82)
PR4101 Direct Labor to SWEPCO Coal Cars 38,318.41
PR4104 Direct Labor to Rework SWEPCO Material 11,753.59
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 9,607.48
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 4,779.54
PR4238 Depreciation Expense - SWEPCO 0.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 19,945.50
PR4272 Switching Fees - SWEPCO 4,218.30
PR4277 Repainting Coal Cars - SWEPCO 0.00
----------------
Total 100% SWEPCO Costs $269,007.79
================
COSTS ASSIGNED 100% TO CPL: CPL
PR4003 Direct Material to CPL Coal Cars $0.00
PR4014 Inventory Carrying Charges - CPL 0.00
PR4021 Stores Salvage - CPL 0.00
PR4105 Direct Labor to CPL Coal Cars 0.00
PR4106 Direct Labor toRework CPL Material 0.00
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 - CPL 426.89
PR4240 Depreciation Expense - CPL 0.00
PR4269 Outside Maintenance of CPL Coal Cars 1,841.97
PR4274 Switching Fees - CPL 6,567.31
PR4279 Repainting Coal Cars - CPL 0.00
----------------
Total 100% CPL Costs $8,836.17
================
<PAGE>
Exhibit 3
Page 2 of 4
COSTS ASSIGNED 100% TO PSO: PSO
PR4002 Direct Material to PSO Coal Cars $1,163.90
PR4015 Inventory Carrying Charges - PSO 0.00
PR4019 Stores Salvage - PSO 9,655.73
PR4102 Direct Labor to PSO Coal Cars 353.79
PR4103 Direct Labor to Rework PSO Material 144.25
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 95.63
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 3,675.19
PR4239 Depreciation Expense - PSO 0.00
PR4271 Outside Maintenance of PSO Coal Cars 5,889.39
PR4273 Switching Fees - PSO 321.44
PR4278 Repainting Coal Cars - PSO 0.00
----------------
Total 100% PSO Costs $21,299.32
================
<PAGE>
Exhibit 3
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $5,232.18
PR4011 Small Tools 770.76
PR4012 Facility Maintenance - Material 1,353.83
PR4601 Sale of Scrap (Cr.) 4,520.00
PR4016 Switch Engine Operation and Maintenance 0.00
PR4017 Equipment Operation and Maintenance 5,120.73
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 12,663.27
PR4111 Clerical 4,009.33
PR4112 Training and Safety 551.30
PR4113 General Shop Labor 4,165.39
PR4114 Facility Maintenance - Labor 8,039.24
PR4116 Switch Engine Operation and Maintenance 6,480.68
PR4201 Ad Valorem Taxes - Facility 0.00
PR4203 Taxes - Other 0.00
PR4206 Data Processing Charges 0.00
PR4207 General Office Overhead 0.00
PR4210 Employee Activities 0.00
PR4211 Employee Expenses 1,578.53
PR4212 Employee Fringe Benefits 10,632.09
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 0.00
PR4225 Maintenance of Facilities (Contracted) 2,055.00
PR4226 Office Supplies and Expenses 698.74
PR4232 Payroll Taxes (FICA & UC) - Other (2,545.55)
PR4233 Special Services 0.00
PR4234 Utilities - Heat, Light, Power and Water 239.05
PR4235 Utilities - Telephone 911.28
PR4236 Vehicle Expense 318.51
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous 33.30
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} - $66,827.66
----------------
SWEPCO 99.02% $66,169.51
----------------
CPL 0.00% $0.00
----------------
PSO .98% $658.15
----------------
<PAGE>
Exhibit 3
Page 4 of 4
Capital Recovery on Capital Expenditures not
Covered Under Lease Agreement {Cost Ratio} 107.11
----------------
TOTAL COSTS FOR THE MONTH
SWEPCO $335,177.30
================
CPL $8,836.17
================
PSO $22,064.58
================
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $50,072.00 99.02% SWEPCO
102, 103 Direct Labor CPL 0.00 0.00 CPL
102, 103 Direct Labor PSO 498.04 0.98 PSO
------------- --------
Total Direct Labor $50,570.04 100.00%
============= ========
