FILED PURSUANT TO RULE 433
File File No. 333-133548
PUBLIC SERVICE COMPANY OF OKLAHOMA
| $150,000,000 | 6.15% Senior Notes, Series F, due 2016 |
PRICING TERM SHEET
Underwriting Agreement dated August 7, 2006
| Designation: | 6.15% Senior Notes, Series F, due 2016 |
| Principal Amount: | $150,000,000 |
| Maturity: | August 1, 2016 |
| Coupon: | 6.15% |
| Interest Payment Dates: | February 1 and August 1 |
| First Interest Payment Date: | February 1, 2007 |
| Treasury Benchmark: | 5.125% due May 15, 2016 |
| Treasury Price: | $101-18 + |
| Treasury Yield: | 4.919% |
| Reoffer Spread: | 1.250% |
| Yield to Maturity: | 6.169% |
| Price to Public: | 99.862% of the principal amount thereof |
| Redemption Terms: | |
Make-whole call: | At any time at a discount rate of the Treasury Rate plus 20 basis points |
| Minimum Denomination: | $1,000 |
| Joint Book-Running Managers: | Barclays Capital Inc. Greenwich Capital Markets, Inc. |
| Settlement Date: | August 10, 2006 (T+3) |
| CUSIP: | 744533BH2 |
| Ratings: | Baa1 by Moody’s Investors Service, Inc. BBB by Standard & Poor’s Ratings Services A- by Fitch Ratings Ltd. |
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed registration statements (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Barclays Capital Inc. toll free at 888-227-2275, ext. 2663 or Greenwich Capital Markets, Inc. toll free at 866-884-2071.
