UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
File No. 70-5741
REPORT FOR PERIOD October 1, 1998 to December 31,1998 PURSUANT TO RULE 24
In the Matter of
SOUTHWESTERN ELECTRIC POWER COMPANY
Shreveport, Louisiana 71156
PUBLIC SERVICE COMPANY OF OKLAHOMA
Tulsa, Oklahoma 74102
CENTRAL POWER AND LIGHT COMPANY
Corpus Christi, Texas 78401
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 October 1,
1998 through December 31, 1998.
<PAGE>
FOURTH QUARTER 1998
SWEPCO RAIL CAR MAINTENANCE FACILITY
RULE 24 REPORT
A. NUMBER OF RAIL CARS SERVICED
SWEPCO PSO CPL TOTAL
OCTOBER 424 31 207 662
NOVEMBER 436 2 0 438
DECEMBER 454 0 0 454
-----------------------------------------------------
TOTAL 1,314 33 207 1,554
=====================================================
B. AMOUNT OF EXPENDITURES
DETAIL SWEPCO PSO CPL TOTAL
DIRECT LABOR -
OCTOBER 44,354.81 16,641.67 8,316.72 69,313.20
NOVEMBER 43,290.05 1,450.82 145.21 44,886.08
DECEMBER 43,950.33 354.08 106.16 44,410.57
-----------------------------------------------------
TOTAL 131,595.19 18,446.57 8,568.09 158,609.85
=====================================================
DIRECT MATERIAL -
OCTOBER 32,920.16 44,239.62 15,333.41 92,493.19
NOVEMBER 158,342.30 3,728.00 - 162,070.30
DECEMBER 158,450.99 - - 158,450.99
-----------------------------------------------------
TOTAL 349,713.45 47,967.62 15,333.41 413,014.48
=====================================================
OTHER DIRECT EXPENSES -
OCTOBER 20,603.20 (1,281.70) 5,157.11 24,478.61
NOVEMBER 54,544.36 (11,911.71) 3,623.90 46,256.55
DECEMBER (62,521.36) 9,705.60 1,868.96 (50,946.80)
-----------------------------------------------------
TOTAL 12,626.20 (3,487.81) 10,649.97 19,788.36
=====================================================
INDIRECT EXPENSES SHARED ON
COST RATIO
OCTOBER 77,670.26 29,110.17 14,567.91 121,348.34
NOVEMBER 79,795.31 1,805.16 - 81,600.47
DECEMBER 63,932.02 515.06 154.42 64,601.50
-----------------------------------------------------
TOTAL 221,397.59 31,430.39 14,722.33 267,550.31
=====================================================
TOTAL EXPENDITURES
OCTOBER 175,548.43 88,709.76 43,375.15 307,633.34
NOVEMBER 335,972.02 (4,927.73) 3,769.11 334,813.40
DECEMBER 203,811.98 10,574.74 2,129.54 216,516.26
-----------------------------------------------------
TOTAL 715,332.43 94,356.77 49,273.80 858,963.00
=====================================================
C. COMPUTATION OF COST RATIO SWEPCO PSO CPL TOTAL
OCTOBER 1998
DIRECT LABOR 44,355 16,642 8,317 69,313
COST RATIO 63.99% 24.01% 12.00% 100.00%
NOVEMBER 1998
DIRECT LABOR 43,290 1,451 145 44,886
COST RATIO 96.44% 03.23% 00.32% 100.00%
DECEMBER 1998
DIRECT LABOR 43,950 354 106 44,411
COST RATIO 98.96% 00.80% 00.24% 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 22nd day of January, 1999.
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 October 1998 statement furnished by SWEPCO to Electronic
PSO and CPL detailing PSO and CPL's rail
car charges
2 November 1998 statement furnished by SWEPCO to Electronic
PSO and CPL detailing PSO and CPL's rail
car charges
3 December 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
OCTOBER 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 424 PSO 31 CPL 207
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $32,920.16
PR4018 Stores Salvage - SWEPCO (43,757.91)
PR4101 Direct Labor to SWEPCO Coal Cars 36,029.67
PR4104 Direct Labor to Rework SWEPCO Material 8,325.14
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 6,868.20
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 3,374.33
PR4238 Depreciation Expense - SWEPCO 42,777.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 8,129.40
PR4272 Switching Fees - SWEPCO 3,229.36
PR4277 Repainting Coal Cars - SWEPCO 0.00
------------
Total 100% SWEPCO Costs $97,895.35
============
COSTS ASSIGNED 100% TO CPL: CPL
PR4003 Direct Material to CPL Coal Cars 15,333.41
PR4014 Inventory Carrying Charges - CPL 1,237.17
PR4021 Stores Salvage - CPL 0.00
PR4105 Direct Labor to CPL Coal Cars 8,316.72
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 1,292.02
PR4218 Payroll Taxes (FICA & UC) - Direct Labor - CPlL 632.63
PR4240 Depreciation Expense - CPL 0.00
PR4269 Outside Maintenance of CPL Coal Cars 2,002.91
PR4274 Switching Fees - CPL 0.00
PR4279 Repainting Coal Cars - CPL 0.00
------------
Total 100% CPL Costs $28,814.86
============
<PAGE>
Exhibit 1
Page 2 of 4
COSTS ASSIGNED 100% TO PSO: PSO
PR4002 Direct Material to PSO Coal Cars $44,239.62
PR4015 Inventory Carrying Charges - PSO 1,926.23
PR4019 Stores Salvage - PSO (11,424.31)
PR4102 Direct Labor to PSO Coal Cars 10,951.19
PR4103 Direct Labor to Rework PSO Material 5,690.48
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 2,512.03
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 1,269.17
PR4239 Depreciation Expense - PSO 0.00
PR4271 Outside Maintenance of PSO Coal Cars 3,150.80
PR4273 Switching Fees - PSO 1,259.56
PR4278 Repainting Coal Cars - PSO 0.00
------------
Total 100% PSO Costs $59,574.77
============
<PAGE>
Exhibit 1
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $6,694.20
PR4011 Small Tools 418.21
PR4012 Facility Maintenance - Material 1,609.85
PR4013 Sale of Crops (Cr.) (5,300.00)
PR4016 Switch Engine Operation and Maintenance 421.94
PR4017 Equipment Operation and Maintenance 4,227.86
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 17,620.46
PR4111 Clerical 6,575.09
PR4112 Training and Safety 4,881.13
PR4113 General Shop Labor 8,868.47
PR4114 Facility Maintenance - Labor 15,683.87
PR4116 Switch Engine Operation and Maintenance 14,892.56
PR4201 Ad Valorem Taxes - Facility 0.00
PR4203 Taxes - Other 0.00
PR4206 Data Processing Charges 574.40
PR4207 General Office Overhead 583.05
PR4210 Employee Activities 1,347.64
PR4211 Employee Expenses 1,494.15
PR4212 Employee Fringe Benefits 10,775.90
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 14,395.56
PR4225 Maintenance of Facilities (Contracted) 2,399.03
PR4226 Office Supplies and Expenses 2,911.83
PR4232 Payroll Taxes (FICA & UC) - Other 5,216.03
PR4233 Special Services 0.00
PR4234 Utilities - Heat, Light, Power and Water 4,250.92
PR4235 Utilities - Telephone 672.19
PR4236 Vehicle Expense 0.00
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous 134.01
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} - $121,348.35
------------
SWEPCO 63.99% $77,653.07
------------
CPL 12.00% $14,560.29
------------
PSO 24.01% $29,134.99
------------
<PAGE>
Exhibit 1
Page 4 of 4
Capital Recovery on Capital Expenditures not
Covered Under Lease Agreement {Cost Ratio} 0.00
------------
TOTAL COSTS FOR THE MONTH
SWEPCO $175,548.42
============
CPL $43,375.15
============
PSO $88,709.76
============
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $44,354.81 63.99 % SWEPCO
105, 106 Direct Labor CPL 8,316.72 12.00 CPL
102, 103 Direct Labor PSO 16,641.67 24.01 PSO
---------- -------
Total Direct Labor $69,313.20 100.00 %
========== =======
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
NOVEMBER 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 436 PSO 2 CPL 0
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $158,342.30
PR4018 Stores Salvage - SWEPCO (2,435.59)
PR4101 Direct Labor to SWEPCO Coal Cars 36,074.58
PR4104 Direct Labor to Rework SWEPCO Material 7,215.47
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 5,867.92
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 1,816.08
PR4238 Depreciation Expense - SWEPCO 10,487.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 33,937.14
PR4272 Switching Fees - SWEPCO 5,968.16
PR4277 Repainting Coal Cars - SWEPCO 0.00
------------
Total 100% SWEPCO Costs $257,273.06
============
COSTS ASSIGNED 100% TO CPL: CPL
PR4003 Direct Material to CPL Coal Cars $0
PR4014 Inventory Carrying Charges - CPL 1,262.94
PR4021 Stores Salvage - CPL 0.00
PR4105 Direct Labor to CPL Coal Cars 145.21
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 - CPL 0.00
PR4240 Depreciation Expense - CPL 0.00
PR4269 Outside Maintenance of CPL Coal Cars 977.54
PR4274 Switching Fees - CPL 1,119.43
PR4279 Repainting Coal Cars - CPL 0.00
------------
Total 100% CPL Costs $3,505.12
============
<PAGE>
Exhibit 2
Page 2 of 4
COSTS ASSIGNED 100% TO PSO: PSO
PR4002 Direct Material to PSO Coal Cars $3,728.00
PR4015 Inventory Carrying Charges - PSO 1,966.34
PR4019 Stores Salvage - PSO (23,614.51)
PR4102 Direct Labor to PSO Coal Cars 392.94
PR4103 Direct Labor to Rework PSO Material 1,057.88
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 132.76
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 41.09
PR4239 Depreciation Expense - PSO 0.00
PR4271 Outside Maintenance of PSO Coal Cars 7,163.60
PR4273 Switching Fees - PSO 1,566.65
PR4278 Repainting Coal Cars - PSO 0.00
------------
Total 100% PSO Costs ($7,565.25)
============
<PAGE>
Exhibit 2
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $3,677.22
PR4011 Small Tools 1,364.74
PR4012 Facility Maintenance - Material 3,436.41
PR4013 Sale of Crops (Cr.) 0.00
PR4016 Switch Engine Operation and Maintenance 7,397.82
PR4017 Equipment Operation and Maintenance 2,766.04
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 11,499.15
PR4111 Clerical 3,677.15
PR4112 Training and Safety 215.35
PR4113 General Shop Labor 4,371.18
PR4114 Facility Maintenance - Labor 12,739.86
PR4116 Switch Engine Operation and Maintenance 5,737.14
PR4201 Ad Valorem Taxes - Facility 0.00
PR4520 Land Credit 0.00
PR4210 Employee Activities 140.00
PR4206 Data Processing Charges 574.40
PR4207 General Office Overhead 583.05
PR4211 Employee Expenses 0.00
PR4212 Employee Fringe Benefits 5,476.20
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 1,233.19
PR4225 Maintenance of Facilities (Contracted) 1,975.00
PR4226 Office Supplies and Expenses 990.51
PR4232 Payroll Taxes (FICA & UC) - Other 1,610.34
PR4233 Special Services 0.00
PR4234 Utilities - Heat, Light, Power and Water 10,772.39
PR4235 Utilities - Telephone 611.80
PR4236 Vehicle Expense 451.53
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous 300.00
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} - $81,600.47
------------
SWEPCO 96.45% $78,698.96
------------
CPL 0.32% $263.99
------------
PSO 3.23% $2,637.52
------------
<PAGE>
Exhibit 2
Page 4 of 4
Capital Recovery on Capital Expenditures not
Covered Under Lease Agreement {Cost Ratio} 0.00
------------
TOTAL COSTS FOR THE MONTH
SWEPCO $335,972.02
============
CPL $3,769.11
============
PSO ($4,927.73)
============
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $43,290.05 96.45 % SWEPCO
105, 106 Direct Labor CPL 145.21 0.32 CPL
102, 103 Direct Labor PSO 1,450.82 3.23 PSO
---------- -------
Total Direct Labor $44,886.08 100.00 %
========== =======
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
DECEMBER 1998
A. NUMBER OF RAIL CARS SERVICED
SWEPCO 454 PSO 0 CPL 0
B. AMOUNT OF EXPENDITURES: SWEPCO
COSTS ASSIGNED 100% TO SWEPCO:
PR4001 Direct Material to SWEPCO Coal Cars $158,450.99
PR4018 Stores Salvage - SWEPCO (78,197.21)
PR4101 Direct Labor to SWEPCO Coal Cars 36,865.45
PR4104 Direct Labor to Rework SWEPCO Material 7,084.88
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 5,991.32
PR4230 Payroll Taxes (FICA & UC) - Direct Labor - SWEPCO 1,854.60
PR4238 Depreciation Expense - SWEPCO 0.00
PR4263 Lease - Supplemental Expenses - SWEPCO 0.00
PR4270 Outside Maintenance of SWEPCO Coal Cars 1,055.84
PR4272 Switching Fees - SWEPCO 6,774.09
PR4277 Repainting Coal Cars - SWEPCO 0.00
------------
Total 100% SWEPCO Costs $139,879.96
============
COSTS ASSIGNED 100% TO CPL: CPL
PR4003 Direct Material to CPL Coal Cars $0.00
PR4014 Inventory Carrying Charges - CPL 1,274.04
PR4021 Stores Salvage - CPL 0.00
PR4105 Direct Labor to CPL Coal Cars 106.16
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 14.47
PR4218 Payroll Taxes (FICA & UC) - Direct Labor - CPL 4.49
PR4240 Depreciation Expense - CPL 0.00
PR4269 Outside Maintenance of CPL Coal Cars 575.96
PR4274 Switching Fees - CPL 0.00
PR4279 Repainting Coal Cars - CPL 0.00
------------
Total 100% CPL Costs $1,975.12
============
<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 1,983.63
PR4019 Stores Salvage - PSO 6,737.63
PR4102 Direct Labor to PSO Coal Cars (0.04)
PR4103 Direct Labor to Rework PSO Material 354.12
PR4205 Ad Valorem Taxes - Facility - Direct - PSO 0.00
PR4214 Employee Fringe Benefits - Direct Labor - PSO 48.29
PR4231 Payroll Taxes (FICA & UC) - Direct Labor - PSO 14.95
PR4239 Depreciation Expense - PSO 0.00
PR4271 Outside Maintenance of PSO Coal Cars 608.16
PR4273 Switching Fees - PSO 312.94
PR4278 Repainting Coal Cars - PSO 0.00
------------
Total 100% PSO Costs $10,059.68
============
<PAGE>
Exhibit 3
Page 3 of 4
COSTS TO BE SHARED {Ratio of Direct Labor}: SHARED
PR4010 Shop Material $4,532.46
PR4011 Small Tools 1,689.13
PR4012 Facility Maintenance - Material 547.11
PR4013 Sale of Scrap (Cr.) (42.18)
PR4016 Switch Engine Operation and Maintenance 50.16
PR4017 Equipment Operation and Maintenance 7,271.41
PR4020 Stores Salvage - Joint 0.00
PR4110 Supervision 11,040.63
PR4111 Clerical 3,499.75
PR4112 Training and Safety 712.35
PR4113 General Shop Labor 3,442.57
PR4114 Facility Maintenance - Labor 8,219.45
PR4116 Switch Engine Operation and Maintenance 6,729.94
PR4201 Ad Valorem Taxes - Facility 0.00
PR4520 Land, Credit 0.00
PR4210 Employee Activities 94.61
PR4206 Data Processing Charges 574.40
PR4207 General Office Overhead 583.05
PR4211 Employee Expenses 899.17
PR4212 Employee Fringe Benefits 5,004.84
PR4215 Employee Sick Benefits 0.00
PR4220 Injuries and Damages 0.00
PR4221 Insurance - Liability and Property 1,233.19
PR4225 Maintenance of Facilities (Contracted) 3,055.00
PR4226 Office Supplies and Expenses 662.17
PR4232 Payroll Taxes (FICA & UC) - Other 1,419.86
PR4233 Special Services 0.00
PR4234 Utilities - Heat, Light, Power and Water 2,456.21
PR4235 Utilities - Telephone 531.27
PR4236 Vehicle Expense 24.95
PR4237 Depreciation Expense 0.00
PR4250 Miscellaneous 370.00
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} - $64,601.50
------------
SWEPCO 98.96% $63,932.02
------------
CPL 0.24% $154.42
------------
PSO 0.80% $515.06
------------
<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 $203,811.98
============
CPL $2,129.54
============
PSO $10,574.74
============
C. COMPUTATION OF COST RATIO:
101, 104 Direct Labor SWEPCO $43,950.33 98.96 % SWEPCO
105, 106 Direct Labor CPL 106.16 0.24 CPL
102, 103 Direct Labor PSO 354.08 0.80 PSO
---------- -------
Total Direct Labor $44,410.57 100.00 %
========== =======
