[Front Cover]
[Close-up image of electric light bulb filament]
CENTRAL AND SOUTH WEST CORPORATION
SUMMARY ANNUAL REPORT 1999
staying
power
[Front inside Cover]
Central and South West Corporation
Incorporated in Delaware in 1925
Central and South West Corporation is an investor-owned electric utility holding
company based in Dallas, Texas. CSW owns four electric utilities in the United
States: Central Power and Light Company, Public Service Company of Oklahoma,
Southwestern Electric Power Company and West Texas Utilities Company. These
companies serve 1.8 million customers in an area covering 152,000 square miles
of Texas, Oklahoma, Louisiana and Arkansas. CSW also owns a regional energy
company in the United Kingdom, SEEBOARD plc, which serves 2 million customers in
South East England. CSW engages in international energy, telecommunications and
energy services businesses through its nonutility subsidiaries, primarily CSW
International, Inc., C3 Communications, Inc., and CSW Energy, Inc. On December
22, 1997, Central and South West Corporation and American Electric Power
Company, Inc., announced a definitive merger agreement for a tax-free
stock-for-stock transaction. On December 16, 1999, CSW and AEP mutually agreed
to amend the merger agreement to extend its term until June 30, 2000.
Highlights
FINANCIAL DATA IN MILLIONS
For the years ended December 31, 1999 1998
- ----------------------------------------------------------------
Operating Revenues $5,537 $5,482
U.S. Electric Fuel and Purchased Power 1,333 1,301
United Kingdom Cost of Sales 1,133 1,204
Other Operating Expenses 1,808 1,719
Taxes 397 392
- ----------------------------------------------------------------
Operating Income 866 866
Other Income 59 42
Interest and Other Charges (456) (468)
Extraordinary Item (14) -
- ----------------------------------------------------------------
Net Income for Common Stock $ 455 $ 440
================================================================
COMMON STOCK DATA AND DIVIDENDS
At December 31, 1999 1998
- ----------------------------------------------------------------
Basic and Diluted Earnings per Share $2.14 $2.07
Dividends per Share $1.74 $1.74
Book Value per Share $17.32 $17.04
Average Common Shares Outstanding (millions) 212.6 212.4
Return on Average Common Equity 12.8% 12.4%
Dividend Yield 8.7% 6.3%
Dividend Payout Ratio 81% 84%
Year-End Market Price $20 $27 7/16
================================================================
QUARTERLY RESULTS
Closing Market Dividends
Price
High Low Paid
- ----------------------------------------------------------------
1999
First Quarter $28 $23 7/16 $0.435
Second Quarter 26 3/16 23 5/16 0.435
Third Quarter 23 1/2 20 7/8 0.435
Fourth Quarter 22 1/2 19 9/16 0.435
- ----------------------------------------------------------------
$1.74
=========
1998
First Quarter $27 13/16 $26 1/4 $0.435
Second Quarter 27 5/8 25 5/8 0.435
Third Quarter 28 3/4 25 1/4 0.435
Fourth Quarter 30 1/16 27 3/8 0.435
- ----------------------------------------------------------------
$1.74
=========
Copies of Central and South West Corporation's 1999 consolidated financial
statements may be obtained by calling our Investor Services Department at
1-800-527-5797.
1
Letter to Our Shareholders
I am pleased to report that 1999 was a very successful year for Central and
South West Corporation. It was marked by major developments in three strategic
areas.
|X|Legislation to open the electric industry to greater competition was enacted
by the states of Texas and Arkansas, which joined Oklahoma and 20 other
states that have taken similar actions. As a result, we project that 70
percent of CSW's United States electric revenues will face competition by
2002.
|X|Our merger with American Electric Power Company reached many important
milestones. It received approvals from all four states served by CSW,
conditional approval from the Federal Energy Regulatory Commission and
antitrust clearance from the Department of Justice. We now anticipate
receiving all remaining regulatory approvals needed to close the merger in
the second quarter of 2000.
|X|CSW's earnings per share increased 3.4 percent in 1999 to $2.14. CSW Energy
was a major contributor to this improvement in earnings as a result of the
sale of a 50 percent interest in one of its cogeneration projects. The
after-tax effect of this transaction contributed 16 cents a share to
consolidated net income.
These developments and others--such as successfully handling the many
technological challenges for Year 2000--give us confidence in the staying power
of your investment. I believe the combination of CSW and American Electric Power
Company will increase the value of your investment.
2
DECADE OF CHANGE
A decade ago, we began streamlining Central and South West to make it more
competitive. We flattened our organization, lowered our operating costs, updated
our technological systems and focused our employees on meeting our customers'
needs. We also worked to expand the corporation through major mergers and
acquisitions and to improve its total return through asset portfolio management.
During this period, we have achieved many impressive results in our U.S Electric
operations. Our prices in all customer categories compare favorably to our
competitors', with our residential prices down about 7.5 percent; our fuel costs
per Btu are improved; our recurring U.S. Electric capital spending and our
operations and maintenance expense are well under control; and our electric
expense per customer is about 20 percent below the regional average. All of
these improvements have been achieved while we reduced our U.S. employment by 18
percent.
These critical measures show how CSW has prepared for the changes now under way.
In particular, we anticipated a future of rapid change and structured the
company to operate not only as a single integrated electric system, but also as
a group of competitive lines of business. The confirmation of our vision came in
1999, when both the Texas Legislature and the Arkansas General Assembly passed
laws to restructure the electric utility industry in their states by 2002.
3
HOW THE NEW ELECTRIC BUSINESS WILL OPERATE
The new laws require vertically integrated electric utilities to be unbundled.
Electricity is to be provided by three entities: unregulated generating
companies to produce the electricity and to trade power and boiler fuels on the
wholesale market, regulated transmission and distribution companies to deliver
power from various generators to customers' homes and businesses, and
competitive retail marketing companies to sell the electricity to consumers and
act as their point of contact for service arrangements.
CSW functionally is organized into these activities already; therefore, the
changes should not be dramatic for us. Nevertheless, a great deal of work is
involved in preparing filings with the state and federal regulatory commissions,
in deciding out how best to divide the business and in planning competitive
strategies for each of these three lines of business. We also must explain the
changes to our customers and help them adapt to new ways of doing business with
us and other electric service providers.
It is likely, too, that we will have to continue cutting costs to achieve higher
productivity in our organization. We also will have to continually improve our
work methods and to act faster in handling opportunities and risks. These are
the same challenges faced by virtually all companies in deregulated industries,
including natural gas, telecommunications, railroads and airlines.
For electricity customers, many choices will result. First, consumers will be
able to select their retail electric provider, whether based on price, type of
energy source or the availability of other bundled consumer services, such as
telecommunications, Internet service, cable TV, natural gas supply or home
security. Second, costs will come down because of legislative mandate or
competition. Third, innovative business models will evolve to benefit consumers,
in the same way that Internet retailers now are changing the way we buy books,
cars, clothes, stocks and just about everything else.
4
[Close-up photo of turbine blades on a generator with the cutline: generation]
[Bar charts: Return on Average Common Equity for 1995-99
Percent
1995 13.1%
1996 12.1%
1997 4.2%
1998 12.4%
1999 12.8%
and Earning and
Dividends per Share for 1995-99]
Reported
Dividends Earnings
1995 1.72 2.10
1996 1.74 2.07
1997 1.74 0.72
1998 1.74 2.07
1999 1.74 2.14
CSW also must make critical choices. We must choose where to compete in the
future, what energy services and products to sell and whether to form marketing
affiliations with other companies. These are major decisions that go to the
heart of the company's long-term strategy.
MERGER EXPECTED TO PROVIDE SIZABLE BENEFITS
For a company like CSW, which has been in this business for a long time,
opportunities abound. Our company has low-cost power supplies, a large number of
customers and strong relationships in hundreds of communities. Whether competing
on cost, reliability of energy supply or the capability to satisfy future market
demands, CSW can meet the challenge and succeed.
Why, then, did CSW's board of directors seek to merge with AEP? The answer is
staying power. The primary reason is to achieve the size necessary to
successfully compete on price, service and innovation. During the past 10 years,
CSW has pursued numerous opportunities to increase its size and strength. This
combination of CSW with AEP will create the largest generating company in North
America. The merged company will have more customers than any other U.S.
electric utility. It also will combine our vast transmission and distribution
operations--stretching from Canada to Mexico--to serve 11 states, including
Texas, the country's largest energy market. Just as important, the new AEP will
have some of the most experienced managers in the electric industry.
A merger with AEP will yield the efficiency and earnings necessary to compete in
the future. The new company will have a formidable regional, national and
international presence, an expanded growth potential and new strategic
strengths, such as greater fuel diversity and more power-trading capacity. The
6
[Pie chart: 1999 Revenues, with percentages for U.S. Electric, U.K.
Electric and Other]
U.S. Electric 64%
U.K. Electric 31%
Other 5%
greater size also will add to the financial strength of the merged company; its
stronger balance sheet will offer the capability to undertake larger
investments, to attract global partners and to invest in ventures that offer
higher potential returns. Greater size, in short, will contribute to higher
long-term returns.
At the start of the merger, the two companies initially estimated $2 billion in
merger savings through the elimination of duplicative costs. During the past two
years, CSW and AEP employees have devoted thousands of hours to finding the best
ways to operate the combined company in the most efficient manner. As a result
of these efforts, we now project that AEP will be able to achieve significant
additional savings. In CSW's four states, merger settlement agreements and rate
plans provide major price reductions for our retail electric customers. With the
closing of the merger, I believe these merger benefits should be more fully
recognized and valued by the financial markets.
We have made great strides toward satisfying the conditions to complete the
merger. AEP and CSW have received many of the required regulatory approvals
needed and are expecting a ruling soon from the Securities and Exchange
Commission.
To provide sufficient time to satisfy all the closing conditions, the boards of
CSW and AEP have extended the term of the merger agreement until June 30, 2000.
After that date, either party may terminate the merger agreement if the merger
has not closed. The agreement continues to provide that CSW shareholders will
receive 0.6 a share of AEP common stock for each CSW common share at closing. We
also expect that CSW will continue paying its current quarterly dividend rate of
43.5 cents a share until the merger closes, based upon the corporation's
financial results and the decisions of CSW's board of directors.
7
[Close-up photo of electrical socket plate with the cutline: transmission &
distribution]
RESULTS IN 1999
CSW's net income for common stock was $455 million in 1999, compared to $440
million in 1998. Earnings per share increased 7 cents to $2.14.
The increase was primarily due to a one-time gain from the sale of half of CSW's
equity ownership interest in Sweeny Cogeneration Limited Partnership. CSW's
after-tax earnings from the proceeds of the sale were $33 million, or 16 cents a
share.
Earnings for 1999 adjusted for nonrecurring factors decreased to $1.98 a share
from $2.15 a share in 1998. Earnings from our U.S. Electric operations were
lower, mainly due to higher operations and maintenance expenses, which decreased
earnings 19 cents a share. Adding to O&M expenses was a settlement with a
transmission service provider, higher tree-trimming costs, an adjustment to FERC
transmission rates and additional power plant costs. Earnings from our U.K.
Electric operations improved 2 cents a share above those for 1998. The increase
was primarily due to lower energy purchase costs. Earnings from Diversified
Electric operations were 4 cents above those of 1998, primarily due to
contributions from several CSW Energy plants.
ELECTRIC OPERATIONS DURING 1999
Our total U.S. electric sales for 1999 were 66.8 billion kilowatt-hours, a
decline of less than 1 percent below 1998 sales. Summer weather in the Southwest
during 1999 returned to normal compared with the summer of 1998, which was one
of the hottest on record. Our total domestic retail electric sales declined by
1.5 percent, from 58.7 billion kilowatt-hours to 57.8 billion kilowatt-hours.
Sales for resale increased by 8.4 percent to 9.0 billion kilowatt-hours.
Our electric operations encountered no problems related to the Year 2000
computer programming issue. CSW began an extensive program in early 1996 to test
all major systems and to correct any date-related problems. We conducted
extensive internal tests, checked services from our suppliers and participated
in a number of national industry-readiness drills. This extensive effort to
assure reliable operations cost approximately $33 million during the past four
years, including $21 million in 1999.
9
In the fourth quarter of 1999, the gas and electricity regulator in the United
Kingdom cut the allowed prices of U.K. electricity distributors, including CSW's
SEEBOARD plc unit. Although the new prices did not affect 1999 earnings, they
are expected to lower our U.K. Electric earnings by $40 million in 2000 and by
$60 million in 2001. As part of our merger with AEP, we have sought government
approval for the common ownership of SEEBOARD and Yorkshire Electricity Group,
in which AEP owns a 50 percent interest. The U.K. Department of Trade and
Industry has approved this change, subject to certain conditions that restrict
joint operation of the U.K. interests.
CHANGING FROM REGULATION TO COMPETITION
In evolving from a regulated to a competitive industry in the U.S., many larger
utilities face the issue of recovering "stranded costs." These are investments
that were made prudently to serve customers but no longer will be economically
competitive in a restructured marketplace. The Texas Legislature included in the
state's restructuring law provisions for utilities to recover reasonable amounts
for their stranded investments.
Securitization is a financial mechanism for charging customers for these costs.
Essentially, new bonds are sold to refinance a portion of the debt and equity of
facilities built under a regulated market structure. Securitization allows the
costs that customers are currently paying for these assets to be paid off
sooner, resulting in lower customer prices in the future than otherwise would be
possible.
In October, CSW's Central Power and Light Company subsidiary filed with the
Public Utility Commission of Texas for permission to securitize $1.27 billion of
stranded investment related to regulatory assets. In February 2000, the Texas
PUC approved a settlement allowing CPL to securitize $764 million of regulatory
assets and to recover much of the remaining cost in the future. CPL expects to
issue bonds before the end of 2000, depending on the timing of receiving a final
nonappealable financing order from the commission and on market conditions. A
second phase of the securitization process will occur in 2001. CPL's stranded
costs are subject to a final review by the Texas PUC in 2004. The other CSW
operating companies do not have any stranded investments.
10
[Close-up photo of electric range Calrod heating coil with cutline:
retail marketing]
[Head-and-shoulders photo with cutline: E.R. Brooks, Chairman and Chief
Executive Officer]
In January 2000, CSW filed with the Texas PUC a plan to unbundle the company's
electric utility services into three entities, as required under the state's new
electric utility restructuring law. CSW's plan proposes a separation to ensure a
smooth transition for our customers while providing a cost-effective way to
divide the energy delivery, power generation and retail business functions.
Based on the experience of utilities in other states, we estimate that the total
cost to restructure the entire CSW system to implement retail competition will
range from $100 million to $200 million.
STAYING POWER FOR THE FUTURE
For 75 years, Central and South West has demonstrated enormous staying power.
Its operating companies were among the fastest-growing businesses during the
early part of this century as they electrified the expanding economy of the
Southwest. Later, CSW was one of the few holding companies with the managerial
strength to weather the terrible financial collapse of the Great Depression and
to remain intact after Congress passed the Public Utility Holding Company Act of
1935--which was a virtual death sentence for most utility holding companies of
that era.
During the years of war and peace that followed, our employees worked
tirelessly. They contributed in many ways to the growth and welfare of the 735
communities we now serve while they earned attractive returns for the investors
who placed their confidence in CSW. As the Southwest grew during the second half
of the 20th century, CSW's electric companies were there to generate the power
needed for a new industrial economy and the energy to make life in the Southwest
more comfortable. The company's continuing record of financial, operational and
civic achievements has made it an industry leader in developing new
opportunities in the U.S. and other countries.
Now, we look forward to the future and to continuing the staying power of our
business. To succeed in the electricity business of the future, we believe a
12
company must possess the size and strength to compete and to innovate. As an
integral part of the new American Electric Power Company, the CSW system will
contribute to that necessary size and strength by helping AEP to grow in new
markets such as power trading, wholesale generation and international
investments.
To help lead the new AEP after the merger closes, Thomas V. Shockley, III,
president and chief operating officer of CSW, will be joining AEP as vice
chairman and as a member of its board of directors. In addition, four outside
CSW directors--Dr. Donald M. Carlton, William R. Howell, James L. Powell and Dr.
Richard L. Sandor--will be nominated for election to the AEP board.
I will be retiring as a company officer with the completion of the merger but
will remain active as a new director of AEP. I look forward to continuing my
role as a steward of your investment and to safeguarding the trust placed in the
new company by its customers. The coming years will bring dramatic changes to
this industry, and I am confident that our company's shareholders and customers
alike will benefit from them.
E. R. Brooks
Chairman and Chief Executive Officer
March 15, 2000
13
Board of Directors and Corporate Officers
BOARD OF DIRECTORS
Molly Shi Boren
Attorney
Norman, Oklahoma
E. R. Brooks
Chairman and Chief Executive Officer
Central and South West Corporation
Dallas, Texas
Donald M. Carlton, Ph.D.
Retired President and
Chief Executive Officer
Radian International LLC
Austin, Texas
T. J. Ellis, CBE
Chairman and Chief Executive
SEEBOARD plc
Crawley, West Sussex, United Kingdom
Joe H. Foy
Retired Partner
Bracewell and Patterson
Kerrville, Texas
William R. Howell
Chairman Emeritus
J. C. Penney Company, Inc.
Dallas, Texas
Robert W. Lawless, Ph.D.
President
The University of Tulsa
Tulsa, Oklahoma
James L. Powell
Ranching and Investments
Fort McKavett, Texas
Richard L. Sandor, Ph.D.
Chairman and Chief Executive Officer
Environmental Financial Products Limited
Chicago, Illinois
Thomas V. Shockley, III
President and Chief Operating Officer
Central and South West Corporation
Dallas, Texas
OFFICERS
E. R. Brooks
Chairman and Chief Executive Officer
Thomas V. Shockley, III
President and Chief Operating Officer
Ferd. C. Meyer, Jr.
Executive Vice President and General Counsel
Glenn D. Rosilier
Executive Vice President and Chief Financial Officer
Glenn Files
Senior Vice President, Electric Operations
Thomas M. Hagan
Senior Vice President, External Affairs
Venita McCellon-Allen
Senior Vice President, Customer Relations
and Corporate Development,
and Assistant Corporate Secretary
Stephen J. McDonnell
Vice President, AEP Merger
Kenneth C. Raney, Jr.
Vice President, Associate General Counsel
and Corporate Secretary
Michael D. Smith
Vice President, Business Opportunities
Lawrence B. Connors
Controller
Wendy G. Hargus
Treasurer
COMMITTEES OF THE BOARD OF DIRECTORS
1. The Audit Committee recommends to the board of directors the independent
public accountants to be appointed, subject to shareholder approval. The Audit
Committee reviews with the independent public accountants and the corporation's
internal auditors the scope of external and internal audits and the adequacy of,
and the compliance with, the corporation's system of internal accounting
controls.
2. The Executive Compensation Committee reviews benefit programs and
management-succession programs and determines the compensation of executive
officers.
3. The Nominating Committee reviews and recommends candidates for election to
the board of directors.
4. The Policy Committee reviews and makes recommendations to the board of
directors concerning major policy issues; considers on a continuing basis the
composition, structure and functions of the board of directors and its
committees; and reviews existing corporate policies and recommends changes when
appropriate. The Policy Committee has authority to act in place of the board of
directors when the board is not in session, to the extent permitted by law.
The membership of these committees is as follows: Molly Shi Boren (1) (2); E. R.
Brooks, chairman of the Policy Committee (4); Donald M. Carlton (1) (3); Joe H.
Foy, chairman of the Executive Compensation Committee (2) (4); William R. Howell
(2) (3); Robert W. Lawless, chairman of the Audit Committee (1) (4); James L.
Powell, chairman of the Nominating Committee (3) (4); and Richard L. Sandor (1)
(2).
14
Shareholder Information
COMMON STOCK LISTING
Central and South West Corporation's common stock is traded under the ticker
symbol CSR and is listed on the New York and the Chicago stock exchanges. You
can find stock quotations from the New York Stock Exchange in most daily
newspapers.
COMMON STOCK DIVIDENDS
Dividends of 43.5 cents a share were paid in each quarter of 1999. All dividends
paid by the corporation represent taxable income to shareholders for federal
income tax purposes. In January 2000, the corporation's board of directors
maintained the quarterly dividend rate of 43.5 cents a share. CSW anticipates
continuing its current dividend policy until the close of its merger with
American Electric Power Company and paying a second-quarter dividend in 2000 to
shareholders of record on or about May 5, 2000, unless the merger closes before
that date. Future cash dividends will be determined by the board of directors
and based upon the corporation's earnings, financial condition and other
factors.
LOST DIVIDEND CHECK OR STOCK CERTIFICATE
If you do not receive your dividend check or stock certificate, or if either is
lost, destroyed or stolen, please contact our Investor Services Department
immediately.
STOCK TRANSFER
Central and South West Services, Inc., is the transfer agent and registrar for
Central and South West Corporation's common stock and for the preferred stocks
of the corporation's subsidiaries. To transfer your stock to another name, write
the new name, address and tax identification number on the back of the
certificate and sign your name exactly as it appears on the front. Then have
your signature Medallion-guaranteed by a commercial bank or stockbroker.
Signatures cannot be Medallion-guaranteed by a notary public. Your stock
certificates should be sent to our Investor Services Department by registered or
certified mail. If you have questions about transferring your shares, please
contact our Investor Services Department.
TAXPAYER ID NUMBER
Federal law requires each shareholder to provide a taxpayer identification
number for all shareholder accounts. For individual shareholders, your ID number
is your Social Security number. You must provide your ID number when opening a
new account in our stock, even if you already own stock in existing accounts in
your name. If you do not provide the ID number, the corporation is required to
withhold 31 percent from your dividends payable to the Internal Revenue Service.
If your stock is registered in a joint account, it is important to tell us the
taxpayer ID number of the primary owner you designate. If you are custodian for
a minor or act as a trustee on an account, please provide the beneficial owner's
tax identification number. This will ensure that your dividends are reported
under the correct name, address and taxpayer ID number. If you have not yet
given us your taxpayer ID number, please contact our Investor Services
Department to request a W-9 form. Complete, sign and return the form as soon as
possible.
DIRECT DEPOSIT OF DIVIDENDS
We are pleased to offer direct deposit of dividend payments to your checking,
savings or credit union account at any financial institution that accepts direct
electronic deposits. Direct deposit eliminates the possibility of your check
being lost or stolen, and the funds are credited to your account on the dividend
payment date. If you would like an enrollment card, please contact our Investor
Services Department.
PROXY AND DIVIDEND MAILINGS
Duplicate mailings of proxies and dividend checks cannot be eliminated unless
the registration is the same name for all of your accounts. If your account
registrations are identical, notify our Investor Services Department that you
want to combine your accounts. If your account registrations are different and
you want to combine your accounts, all certificates must be issued in the one
registration you prefer. To have your certificates reissued, please follow the
instructions under Stock Transfer.
ADDITIONAL INFORMATION
We will be pleased to send you additional copies of this Summary Annual Report.
Also available are the 1999 Financial Report that accompanies this Summary
Annual Report, CSW's 1999 Annual Report on Form 10-K, a preliminary quarterly
financial report, a Five-Year Financial and Statistical Review of the Central
and South West System and our latest Environmental Report of the Central and
South West System.
Central and South West Corporation is subject to the informational and reporting
requirements of the Securities Exchange Act of 1934 and files reports and other
information statements with the Securities and Exchange Commission. These
reports may be inspected at the SEC's offices and on its Internet site as well
as at the New York and Chicago stock exchanges. We will provide copies of these
reports without charge to any Central and South West shareholder. If you would
like to receive a report, please contact our Investor Services Department.
INSTRUCTIONS FOR EXCHANGING CSW SHARES FOR AEP SHARES
Central and South West Corporation expects that all approvals for closing its
merger with American Electric Power Company, Inc., will be obtained in the
second quarter of 2000. Near the close of the merger, we will mail instructions
and forms for exchanging your CSW shares for AEP shares.
15
INVESTOR SERVICES
Our Investor Services staff is available Monday through Friday from 9 a.m. to
4 p.m. central time to answer your questions. Our address and telephone numbers
are:
Central and South West Corporation
Investor Services Department
P. O. Box 660164
Dallas, Texas 75266-0164
1-800-527-5797
E-mail: invest@csw.com
INVESTOR RELATIONS
Security analysts should contact:
Becky Hall
Director of Investor Relations
Central and South West Corporation
214-777-1277
If you would like to be added to our mailing list to receive our news releases
and other information, please contact our Investor Services Department.
Certain matters discussed in this summary annual report are forward-looking
statements intended to qualify for the safe harbor from liability established by
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements can generally be identified as such because the context of the
statement will include words such as CSW "believes," "anticipates" or "expects,"
or words of similar import. Similarly, statements that describe CSW's future
plans, objectives and goals also are forward-looking statements. Such statements
address future events and conditions concerning capital expenditures, earnings,
litigation, rate and other regulatory matters, liquidity and capital resources,
and accounting matters. Actual results in each case may differ materially from
those currently anticipated in such statements, by reason of factors such as
effects of state and federal regulatory approvals or proceedings and other
conditions precedent to the proposed merger with AEP, which may or may not be
satisfied; electric utility industry restructuring, including ongoing state and
federal legislative and regulatory activities; future economic conditions;
developments in the domestic and international markets in which CSW and its
subsidiaries operate; and other circumstances affecting anticipated business
activities, revenues and costs.
(C)2000 by Central and South West Corporation. All rights reserved.
American Electric Power(R)is a registered trademark of American Electric Power
Company, Inc.
Design: Walsh Associates Photography: Jim Reisch; Stuart Simons/Photonica
Printed on recycled paper
16
[inside back cover]
The CSW System
[Map of the states of Texas, Oklahoma, Louisiana and Arkansas with colored
overlays of the four CSW U.S. Electric operating companies' service areas, the
corporate and operating companies' headquarters cities, major cities in the
service areas, CSW system power plants and major transmission lines; an outline
map of the United Kingdom with an overlay showing the trade territory of
SEEBOARD plc and its headquarters city]
[Back cover]
CENTRAL AND SOUTH WEST CORPORATION
1616 Woodall Rodgers Freeway
P.O. Box 660164
Dallas, Texas 75266-0164
www.csw.com
[Picture of cover of Central and South West System 1999 Environmental Report]
To receive the latest Environmental Report of the Central and South West System,
please call our Investor Services Department at 1-800-527-5797 or send an e-mail
to invest@csw.com.
Printed in U.S.A.
CSWAR99 160