CSW
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Central and South West Corporation
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NEWS RELEASE
1616 Woodall Rodgers Freeway
P.O. Box 660164 * Dallas, Texas 75266-0164
Central Power and Light Company, Corpus Christi
Public Service Company of Oklahoma, Tulsa
Southwestern Electric Power Company, Shreveport
West Texas Utilities Company, Abilene
Central and South West Services, Inc., Dallas
and Tulsa
CSW Communications, Inc., Austin
CSW Credit, Inc., Dallas
CSW Energy, Inc., Dallas
CSW International, Inc., Dallas
CSW Leasing, Inc., Dallas
EnerShop Inc., Dallas
SEEBOARD plc, Crawley, West Sussex, U.K.
FOR IMMEDIATE RELEASE
CSW voices displeasure
Over PUCT Commissioners' Statements
Dallas (March 6, 1997) -- Central and South West Corporation (NYSE: CSR)
voiced strong displeasure about statements made March 5 by members of the Public
Utility Commission of Texas (PUCT). The statements were made regarding the
pending base rate case of CSW's subsidiary Central Power and Light Company.
"We are extremely troubled by some of the remarks the commissioners made
regarding the pending final decision in CPL's rate case," said E.R. Brooks, CSW
chairman, president and chief executive officer. "Some of these statements seem
to raise an issue of whether the Commission is bound by its prior decisions. We
believe it is."
Administrative law judges for the State Office of Administrative
Hearings on Jan. 21 issued a Proposal for Decision on CPL's request for a $71
million rate increase. The administrative law judges' recommendations would
increase CPL's annual revenues by $7.2 million.
Moody's Investors Service, in a Jan. 24 opinion update concerning CPL's
bond rating, described the CPL rate case as "pivotal" for CPL because it will
determine whether or not the company can mitigate its fixed costs and regulatory
assets associated with its participation in the South Texas Project nuclear
generating plant (STP).
During the Wednesday meeting, Commissioner Judy Walsh questioned whether
the PUCT is bound by its findings in prior rate cases regarding recovery of
invested capital. Specifically, Commissioner Walsh suggested that the recovery
of invested capital should be based upon the current competitive environment
rather than the reasonableness of the utility's investment as previously
determined by the PUCT.
Brooks emphasized that "If the Commission's final decision is
inconsistent with prior orders that determined that all of STP costs currently
in rate base are reasonable, CPL will vigorously pursue its legal rights for
full recovery of its invested capital."
Commissioners on Wednesday pushed back the procedural deadline for a
final decision until March 31. Meetings to discuss the case are tentatively
scheduled for March 18 and 19, and a final decision is now expected during the
March 26 Commission meeting.
In November 1995 CPL filed a request to increase its retail base rates
by $71 million. The proposed rate increase was put into effect under bond in May
1996. The difference between the bonded rates collected since May 1996 and the
rate levels ultimately approved by the Commissioners is subject to refund to
customers with accrued interest. CSW's management cannot predict the ultimate
outcome of CPL's rate case.
Central and South West Corporation is a public utility holding company
based in Dallas. Central and South West owns four electric operating
subsidiaries in the United States, a regional electricity company in the United
Kingdom, and non-utility subsidiaries that offer independent power production,
telecommunications, energy efficiency and financial transactions.
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Media contact: Larry Jones, senior communications consultant for Central and
South West Corporation, 214 683-3703.
Financial community contact: Sharon R. Peavy, director of investor relations for
Central and South West Corporation, 214 777-1277.
Internet inquiries: corpcom @csw.com