EXHIBIT 99.1 CENTRAL AND SOUTH WEST CORPORATION AND SUBSIDIARIES REPORT FACTORS EXPECTED TO AFFECT SECOND QUARTER EARNINGS Dallas, Texas (June 24, 1996) -- Central and South West Corporation (NYSE:CSR) today said that it expects to report an after tax gain of approximately $115 million in the second quarter of 1996 from the sale of its Transok, Inc. subsidiary to Tejas Gas Corporation. Central and South West is performing a strategic review in conjunction with its continuing efforts to better position itself to meet increased competition in the electric utility industry. As part of that continuing strategic review, Central and South West said that it is currently evaluating certain investments and contingencies. Among other items included in this review are investments made in prior years for plant sites, engineering studies and lignite reserves, as described in the Corporation's 1995 Annual Report on Form 10-K. Central and South West's U.S. electric operating companies, Central Power and Light Company, Public Service Company of Oklahoma, Southwestern Electric Power Company and West Texas Utilities Company, have made approximately $24 million, $38 million, $34 million and $15 million of such investments, respectively. Central and South West and its subsidiaries are currently reassessing future plans and evaluating the probability of recovery of all or a portion of certain assets and evaluating certain reserves for contingencies. In the event Central and South West and its subsidiaries decide to record appropriate non-cash reserves in the second quarter of 1996, the total amount of these one-time reserves could offset a significant portion of the gain from the sale of Transok in Central and South West's consolidated results of operations. Furthermore, as a result of any non-cash reserves established, certain of Central and South West's U.S. electric operating companies could experience a net loss for the second quarter of 1996. However, there would be a positive cash flow impact resulting from any tax benefits generated. In addition, there would be no material adverse effect on Central and South West's or its U.S. electric operating companies' ongoing results of operation or financial condition. Central and South West sold Transok to Tejas for $690 million in cash on June 6, 1996. As part of the transaction, Transok retained $200 million of its existing debt. Central and South West Corporation, a Dallas-based public utility holding company, owns four electric subsidiary companies in the United States, a regional electricity company in the United Kingdom and nonutility subsidiaries involved in independent power production, telecommunications, energy efficiency and financial transactions.