[Federal Register Volume 62, Number 109 (Friday, June 6, 1997)]
[Notices]
[Pages 31182-31183]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14765]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-26722]


Filings Under the Public Utility Holding Company Act of 1935, as 
Amended (``Act'')

May 30, 1997.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated thereunder. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendments thereto is/are available for public 
inspection through the Commission's Office of Public Reference.
    Interested persons wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by June 23, 1997, to the Secretary, Securities and Exchange 
Commission, Washington, D.C. 20549, and serve a copy on the relevant 
applicant(s) and/or declarant(s) at the address(es) specified below. 
Proof of service (by affidavit or, in case of an attorney at law, by 
certificate) should be filed with the request. Any request for hearing 
shall identify specifically the issues of fact or law that are 
disputed. A person who so requests will be notified of any hearing, if 
ordered, and will receive a copy of any notice or order issued in the 
matter. After said date, the application(s) and/or declaration(s), as 
filed or as amended, may be granted and/or permitted to become 
effective.

Southwestern Electric Power Company, et al. (70-5741)

    Southwestern Electric Power Company (``SWEPCO''), 428 Travis 
Street, Shreveport, Louisiana 71156-0001, Public Service Company of 
Oklahoma (``PSO''), 212 East Sixth Street, Tulsa, Oklahoma 74119-1212, 
and Central Power and Light Company (``CPL''), 539 North Carancahua 
Street, Corpus Christi, Texas 78401-2802 (collectively, 
``Applicants''), all wholly-owned electric utility subsidiaries of 
Central and South West Corporation, a registered holding company, have 
filed a post-effective amendment under sections 6(a), 7, 9(a), 10 and 
13(b) of the Act, and rules 54, 90 and 91 thereunder. The original 
application-declaration was filed under sections 6(a), 7, 9(a), and 
13(b) of the Act, and rules 90 and 91 thereunder.
    Pursuant to prior Commission orders dated April 6, 1976 and August 
9, 1976 (HCAR Nos. 19468 and 19643), SWEPCO was authorized to acquire, 
finance, construct and operate a unit train repair facility (``Repair 
Facility'') near Alliance, Nebraska. The Repair Facility is used for 
the maintenance and repair of railroad cars for the transportation of 
coal to SWEPCO's coal-fired electricity generation plants.
    Pursuant to another Commission order dated February 22, 1979 (HCAR 
No. 20927), SWEPCO and PSO were authorized to enter into a Rail Car 
Maintenance Facility Agreement (``Facility Agreement''), which provides 
for PSO's participation in the cost, use and option to purchase a 
portion of the Repair Facility. The Facility Agreement provides for: 
(1) The payment by each company of the direct labor and

[[Page 31183]]

materials costs of maintaining its rail cars; (2) the sharing of 
indirect costs according to the ratio of each company's direct labor 
costs to total direct labor costs; (3) the sharing of costs of 
improvements to the Repair Facility according to the companies' 
agreement; (4) PSO having an option to purchase a portion of the Repair 
Facility when SWEPCO obtains legal title to the Repair Facility; and 
(5) SWEPCO retaining all tax benefits of its equitable ownership of the 
Repair Facility and PSO receiving a share of such tax benefits based on 
a weighted average cost ratio for each fiscal year. On August 9, 1996, 
the lease allowing SWEPCO to use the Repair Facility expired, and the 
title reverted to SWEPCO. PSO exercised its option to purchase a 
portion of the Repair Facility, and is a minority owner of the Repair 
Facility.
    CPL currently employs unit trains and rail cars to transport coal 
to certain of its coal-fired electricity generation plants from mines 
in Wyoming and Colorado. The rail car repair facility that CPL had used 
to repair its rail cars recently closed. CPL proposes to use the Repair 
Facility to repair its rail cars. Applicants state that CPL's unit 
trains can be run over the same tracks through Alliance, Nebraska as 
SWEPCO's and PSO's unit trains. Applicants also state that the Repair 
Facility can be expanded to furnish all of CPL's maintenance needs 
through the addition of extra workers without the need to construct 
additional plant space.
    CPL proposes to participate with SWEPCO and PSO in the use and 
costs of the maintenance of the Repair Facility pursuant to a Revised 
Rail Car Maintenance Facility Agreement (``Revised Facility 
Agreement'').
    The allocation of direct and indirect costs under the Revised 
Facility Agreement will be parallel to the allocation under the 
Facility Agreement. The Applicants propose to share according to a 
formula the cost of lease payments on the Repair Facility, general 
operation and maintenance costs and all other costs capitalized 
according to generally accepted accounting principles (the ``Indirect 
Costs''). The Applicants propose that Indirect Costs be shared among 
them on the basis of a cost ratio (the ``Cost Ratio''), which is equal 
to the ratio of each Applicant's direct labor costs for its rail cars 
actually repaired or inspected at the Repair Facility to the total 
direct labor costs for all rail cars owned by the Applicants and 
repaired at the Repair Facility. The Cost Ratio will be determined on 
the last day of each calendar month. Each Applicant will pay the actual 
direct costs of inspection and maintenance of its own rail cars, 
including parts, maintenance, labor and other expenses capable of 
direct assignment to a specific rail car. All costs to the Applicants 
will be determined in accordance with rule 91 under the 1935 Act.
    Also, as under the Facility Agreement, the cost of leasehold 
improvements to the Repair Facility will be allocated by agreement of 
the Applicants under the Revised Facility Agreement.
    In the event leasehold improvements are made in the future, the 
Applicants will share the costs of such improvements on such terms and 
conditions as are agreed to by the Applicants at the time of such 
improvements and as are approved by further application to the 
Commission. In reaching such agreement, the Applicants will give full 
consideration to which Applicant's rail cars necessitated the 
improvements.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-14765 Filed 6-5-97; 8:45 am]
BILLING CODE 8010-01-M