EXHIBIT 18.1

LETTER RE:  CHANGE IN ACCOUNTING PRINCIPLE


Re:      Central and South West Corporation (CSW)
         Form 10-Q Report for the quarter ended March 31, 1997

Ladies and Gentlemen:

         This letter is written to meet the requirements of Regulation S-K
calling for a letter from a registrant's independent accountants whenever there
has been a change in accounting principle or practice.

         As stated in Note 1 in the Notes to Financial Statements of this Form
10-Q, effective January 1, 1997, Central Power and Light Company (CPL), a CSW
subsidiary, began utilizing the Last-In First-Out (LIFO) method for valuation of
its coal inventory. Prior to January 1, 1997, CPL utilized the weighted average
costs method. The change was made to be consistent with the fossil fuel
inventory valuation method used by CSW's other Texas utility subsidiary, West
Texas Utilities Company (WTU). In addition, effective January 1, 1997, WTU began
utilizing the LIFO method of inventory valuation for all of its fossil fuel
inventory. Prior to January 1, 1997, WTU utilized a LIFO method for coal and a
weighted average costs method for fossil fuel inventories other than coal. The
change was made to be consistent with its coal inventory valuation method.
Neither of these changes in accounting had an effect of the results of
operations due to the regulatory treatment of such costs.

         A complete coordinated set of financial and reporting standards for
determining the preferability of accounting principles among acceptable
alternative principles has not been established by the accounting profession.
Thus, we cannot make an objective determination of whether the change in
accounting described in the preceding paragraph is to a preferable method.
However, we have reviewed the pertinent factors, including those related to
financial reporting, in this particular case on a subjective basis, and our
opinion stated below is based on our determination made in this manner.

         We are of the opinion that the Corporation's change in method of
accounting is to an acceptable alternative method of accounting, which, based
upon the reasons stated for the change and our discussions with management, is
also preferable under the circumstances in this particular case. In arriving at
this opinion, we have relied on the business judgment and business planning of
your management. We have not made an audit in accordance with generally accepted
auditing standards of the financial statements of the three month period ended
March 31, 1997 or 1996 and, accordingly, we express no opinion thereon or on the
financial information filed as part of the Form 10-Q of which this letter is to
be an exhibit.


                                Very truly yours,



                               ARTHUR ANDERSEN LLP