AEP CSW
AMERICAN ==================================
ELECTRIC CENTRAL AND SOUTH WEST CORPORATION
POWER ==================================
Exhibit 99.2
Contact for American Electric Power:
Pat Hemlepp 614/223-1620
Contact for Central and South West:
Larry Jones 214/777-1276
FOR IMMEDIATE RELEASE:
AEP, CSW Remain Confident In proposed Merger;
Will Seek Prompt Regulatory Review
Columbus, Ohio, and Dallas, Texas (Nov. 24, 1998) - American Electric Power
Company, Inc., ("AEP") [NYSE: AEP] and Central and South West Corp. ("CSW")
[NYSE: CSR] expressed confidence in the timely completion of their proposed
merger after agreeing today to a procedural schedule guiding the Federal Energy
Regulatory Commission's (FERC) hearing on the merger.
The procedural schedule calls for hearings before an administrative law judge
(ALJ) to begin June 1, 1999. The companies will seek a FERC order early in the
fourth quarter of 1999. The FERC schedule would extend by several months the
merger's previously targeted completion date in the first half of 1999.
"We believe the FERC schedule preserves our ability to close the merger in 1999
and that it indicates a desire on the part of the FERC to proceed in an
expeditious manner," said Rich Munczinski, AEP senior vice president, corporate
planning and budgeting. "Our goal would be to receive a FERC order in October.
"Today's events do not change our view of this merger," Munczinski said. "In
fact, with the continued consolidation within our industry, this merger
continues to make all the sense in the world, and we will continue to work to
complete the merger in a timely manner."
Munczinski said AEP and CSW would continue settlement discussions with the FERC,
other regulatory bodies and intervenors in the proceedings. The two companies
already have reached settlements with several groups in Texas and Arkansas, and
the Nuclear Regulatory Commission (NRC) approved the license transfer
application filed by CSW's Central Power and Light Company subsidiary regarding
the South Texas Project nuclear power plant.
"We are encouraged by the positive progress we have been able to make in the
states of Arkansas and Texas," Munczinski said. "We continue to make progress in
the remaining federal and state filings."
In Arkansas, AEP, CSW and Southwestern Electric Power Company (SWEPCO), a CSW
subsidiary, have reached a settlement with the general staff of the Arkansas
Public Service Commission (APSC) on the regulatory plan phase related to the
proposed merger. A hearing to consider approval of the settlement is scheduled
for Dec. 1.
In Texas, the companies' settlement-in-principle with the Office of Public
Utility Counsel and the Steering Committee of the cities of McAllen, Corpus
Christi, Victoria, Abilene, Big Lake, Vernon and Paducah would result in
combined rate reductions totaling approximately $180 million over a six-year
period for Texas customers of the three CSW Texas electric operating companies.
The settlement resolves all issues of the signing parties if it is approved by
the Public Utility Commission of Texas (PUCT) and the merger is completed as
planned.
AEP and CSW will refile their case with the FERC by Jan. 13, 1999. Today's
scheduling conference was held as the result of a FERC order issued Nov. 10. The
order instructed AEP and CSW to address several competitive issues related to
the merger.
AEP and CSW jointly filed with the FERC on April 30, 1998 for approval of their
proposed merger. The companies also have filed applications seeking approval of
the merger with the Arkansas and Texas commissions, as well as the Louisiana
Public Service Commission, the Oklahoma Corporation Commission, and the
Securities and Exchange Commission. The companies plan to make the final two
filings associated with approval of the merger with the Federal Communications
Commission and the Department of Justice in the near future.
The companies announced a definitive merger agreement for a tax-free,
stock-for-stock transaction on Dec. 22, 1997.
Central and South West Corporation is a Dallas-based public utility holding
company that owns four U.S. electric utility subsidiaries with 1.7 million
customers, a regional electricity company serving 2 million customers in the
United Kingdom, and nonutility subsidiaries involved in energy-related
investments as well as subsidiaries that offer telecommunications, energy
efficiency and financial transactions.
American Electric Power Company, Inc., a global energy company, is one of the
United States' largest investor-owned utilities, providing energy to 3 million
customers in Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and West
Virginia. AEP has holdings in the United States, the United Kingdom, China and
Australia. Wholly owned subsidiaries provide power engineering, energy
consulting and energy management services around the world. The company is based
in Columbus, Ohio.
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News releases and other information about AEP can be found on the World Wide Web
at http://www.aep.com.
News releases and other information about CSW can be found on the World Wide Web
at http://www.csw.com.