AEP Texas Central Transition Funding III 10-K 2012 FY Annual report

EXHIBIT 35.1

SERVICER COMPLIANCE STATEMENT

I, Julia A. Sloat, Treasurer of AEP Texas Central Company (the "Servicer"), certify that:

(a) A review of the Servicer's activities during the reporting period covered by this Report on Form 10-K and of its performance under that certain Transition Property Servicing Agreement dated as of March 14, 2012 between AEP Texas Central Transition Funding III LLC, as the Issuing Entity, and the Servicer (the "Servicing Agreement") has been made under my supervision.

(b) To the best of my knowledge, based on such review, the Servicer has fulfilled all of its obligations under the Servicing Agreement in all material respects throughout the reporting period.

Date: March 28, 2013

/s/ Julia A. Sloat                 

Name:  Julia A. Sloat

Title: Treasurer and Senior Officer in Charge of the Servicing Function, AEP Texas Central Company, as Servicer