Exhibit 99.1
AEP CSW
AMERICAN ==================================
ELECTRIC CENTRAL AND SOUTH WEST CORPORATION
POWER ==================================
Contact for American Electric Power: Contact for Central and South West:
Deb Strohmaier 614/223-1656 Larry Jones 214/777-1276
For Immediate Release:
Arkansas Public Service Commission Approves Regulatory Plan
On Merger Between American Electric Power and Central and South West
Columbus, Ohio, and Dallas, Texas (Dec. 22, 1998) - The Arkansas Public Service
Commission (APSC) on Dec. 17 issued a final order granting approval of a
stipulated agreement related to the proposed merger regulatory plan of American
Electric Power Company, Inc. ("AEP") [NYSE: AEP] and Central and South West
Corporation ("CSW") [NYSE: CSR]. CSW is the parent company of Southwestern
Electric Power Company (SWEPCO) SWEPCO serves portions of East Texas, Northwest
Louisiana and West Arkansas, including Fayetteville, Booneville, Rogers and
Eureka Springs.
Arkansas is the first state jurisdiction to approve the proposed merger between
AEP and CSW. The APSC in August approved the merger between the two companies,
subject to any findings issued during the review of the proposed regulatory plan
for sharing of merger benefits in Arkansas.
The Arkansas regulatory plan is the result of a settlement between the merger
applicants and the APSC general staff. In November, AEP, CSW and SWEPCO
announced a settlement with the APSC general staff on the merger regulatory plan
related to the proposed merger. The settlement calls for SWEPCO to reduce rates
through a net merger savings rider for its Arkansas retail customers by amounts
totaling approximately $6 million over the five-year period following completion
of the merger. The parties filed the settlement with the APSC on Nov. 3.
The APSC order notes the possibility of decisions in other jurisdictions
adversely affecting provisions of the Arkansas settlement. Consequently, the
APSC approval is conditioned on its consideration of approval of the merger at
other state and federal regulatory bodies.
Richard E. Munczinski, senior vice president - corporate planning and budgeting
for AEP, noted that he was "pleased that we were able to reach agreement in
Arkansas so that SWEPCO's customers can enjoy the benefits of the merger."
Munczinski said AEP and CSW will continue settlement discussions with the
Federal Energy Regulatory Commission, other regulatory bodies and intervenors in
the various merger proceedings. The two companies already have reached
settlements with several groups in Texas and the Nuclear Regulatory Commission
has approved the license transfer application filed by CSW's Central Power and
Light Company subsidiary regarding the South Texas Project nuclear power plant.
"We have now received two approvals related to our merger," Munczinski said. "We
continue to be encouraged by the positive progress we have been able to make in
the state of Texas. We are also pleased with the cooperation we have received in
other jurisdictions to assure that the merger is considered expeditiously."
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 following completion of the merger for Texas customers of the three CSW
Texas electric operating companies. If approved by the city councils and the
Public Utility Commission of Texas, the settlement will resolve all issues of
the signing parties.
"We expect to continue to make progress in the remaining federal and state
filings," Munczinski added.
The companies announced a definitive merger agreement for a tax-free,
stock-for-stock transaction on Dec. 22, 1997. 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 Oklahoma Corporation Commission, the Louisiana
Public Service Commission, the Federal Energy Regulatory 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.
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. AEP's 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.