SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) November 30, 2004
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AEP TEXAS CENTRAL COMPANY
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(Exact Name of Registrant as Specified in Its Charter)
Texas
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(State or Other Jurisdiction of Incorporation)
1-346 74-0550600
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(Commission File Number) (IRS Employer Identification No.)
1 Riverside Plaza, Columbus, OH 43215
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(Address of Principal Executive Offices) (Zip Code)
614-716-1000
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 7.01. Regulation FD Disclosure
The information, including the exhibit attached hereto, in this Current
Report, is being furnished and shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise
subject to the liabilities of that section. The information in this Current
Report shall not be incorporated by reference into any registration statement or
other document pursuant to the Securities Act of 1933, except as otherwise
stated in such filing.
Attached and incorporated herein by reference as Exhibit 99.1 is a copy of
the press release of AEP Texas Central Company regarding the findings of an
Administrative Law Judge in a rate case with the Public Utility Commission of
Texas.
Item 9.01. Financial Statements and Exhibits
(c) Exhibits
99.1 Press release issued by AEP Texas Central Company, dated
November 30, 2004.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AEP TEXAS CENTRAL COMPANY
By: /s/ Thomas G. Berkemeyer
Name: Thomas G. Berkemeyer
Title: Assistant Secretary
November 30, 2004
EXHIBIT INDEX
Exhibit No. Description
99.1 Press release issued by AEP Texas Central Company, dated November 30, 2004.
MEDIA CONTACT:
Larry Jones
Communications Manager
512/391-2970
ALJ RECOMMENDATIONS IN TCC TRANSMISSION AND DISTRIBUTION RATE CASE SENDS
WRONG MESSAGE TO SOUTH TEXAS
AUSTIN, Texas, Nov. 30, 2004 -- AEP Texas, a unit of American Electric Power
(NYSE: AEP), will file exceptions strongly objecting to revised
recommendations issued by administrative law judges (ALJs) in its Texas
Central Company (TCC) rate case. TCC is seeking a $41 million increase in
rates to cover the costs associated with meeting the increasing energy
delivery demands of south Texas' growing economy. The revised ALJs'
recommendations call for a $51 million decrease.
"TCC provides quality electric delivery service at reasonable
prices," said Charles Patton, AEP Texas president and chief operating
officer. "To recommend reducing our rates by 10 percent when we are already
earning less than a 5 percent return will not support the transmission and
distribution infrastructure necessary to maintain reliable service to
customers and to support the competitive market in Texas. We are optimistic
that, after a thorough review of all the evidence, the Public Utility
Commission of Texas (PUCT) will reject these recommendations when it
considers them in January 2005.
"The initial proposal for decision was flawed, and the revised
proposal for decision is worse," Patton continued. "The revised proposal for
decision, issued by administrative law judges for the State Office of
Administrative Hearings, will have a number of extremely negative
repercussions if ultimately approved by the PUCT. If these recommendations
are approved, TCC will be operating at a loss. Losing money is not a recipe
for reliable service, and reliable electric service is an important factor
in meeting the needs of existing customers and attracting new business and
industry to Texas.
"This recommendation doesn't properly recognize the growing economy
and infrastructure needs in south Texas, nor does it appreciate the impact
of reducing our rates by $51 million, which would be the same as cutting
TCC's entire annual distribution operating and maintenance budget," Patton
continued. "The judges' recommendation disallows important company expenses
in providing customer services, such as customer billing, computer services,
human resources and economic development. The recovery of these service
company costs is a standard operating procedure for virtually all of the
state's electric utilities, as well as any company with multiple business
units attempting to gain efficiencies through the sharing of resources."
Denying recovery of TCC costs will not help most residential
electricity users in the TCC service territory, just as an increase would
not hurt them, because prices for residential customers of CPL Retail Energy
are fixed under the "Price to Beat" provisions of the Texas restructuring
law.
"A fair outcome in this case is not just important for our company, but
for the residential and business customers we serve throughout south Texas,"
said Patton.
TCC is a transmission and distribution utility providing energy
delivery service to a 44,000-square-mile area of south Texas. TCC's service
territory generally includes the southern portion of Texas from just south
of San Antonio to the Mexican border and from Bay City west to Eagle Pass.
Major cities in TCC's service area include Corpus Christi, McAllen,
Harlingen, Laredo and Victoria. TCC's service territory is entirely within
the Electric Reliability Council of Texas (ERCOT). All of the retail
customers in TCC's service territory have retail choice. TCC provides
distribution service to approximately 700,000 end use customers receiving
electric service from 68 retail electric providers.
American Electric Power owns more than 36,000 megawatts of generating
capacity in the United States and is the nation's largest electricity
generator. AEP is also one of the largest electric utilities in the United
States, with more than 5 million customers linked to AEP's 11-state
electricity transmission and distribution grid. The company is based in
Columbus, Ohio.
This report made by AEP and certain of its subsidiaries contains
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934. Although AEP and each of its registrant
subsidiaries believe that their expectations are based on reasonable
assumptions, any such statements may be influenced by factors that could
cause actual outcomes and results to be materially different from those
projected. Among the factors that could cause actual results to differ
materially from those in the forward-looking statements are: electric load
and customer growth; weather conditions, including storms; available sources
and costs of, and transportation for, fuels; availability of generating
capacity and the performance of AEP's generating plants; the ability to
recover regulatory assets and stranded costs in connection with
deregulation; new legislation, litigation and government regulation
including requirements for reduced emissions of sulfur, nitrogen, mercury,
carbon and other substances; resolution of pending and future rate cases,
negotiations and other regulatory decisions (including rate or other
recovery for new investments and environmental compliance); oversight and/or
investigation of the energy sector or its participants; resolution of
litigation (including pending Clean Air Act enforcement actions and disputes
arising from the bankruptcy of Enron Corp.); AEP's ability to reduce its
operation and maintenance costs; the success of disposing of investments
that no longer match AEP's business model; AEP's ability to sell assets at
acceptable prices and on other acceptable terms; international and
country-specific developments affecting foreign investments including the
disposition of any foreign investments; the economic climate and growth in
AEP's service territory and changes in market demand and demographic
patterns; inflationary trends; AEP's ability to develop and execute a
strategy based on a view regarding prices of electricity, natural gas, and
other energy-related commodities; changes in the creditworthiness and number
of participants in the energy trading market; changes in the financial
markets, particularly those affecting the availability of capital and AEP's
ability to refinance existing debt at attractive rates; actions of rating
agencies, including changes in the ratings of debt and preferred stock;
volatility and changes in markets for electricity, natural gas, and other
energy-related commodities; changes in utility regulation, including the
establishment of a regional transmission structure; accounting
pronouncements periodically issued by accounting standard-setting bodies;
the performance of AEP's pension plan; prices for power that AEP generates
and sells at wholesale; changes in technology and other risks and unforeseen
events, including wars, the effects of terrorism (including increased
security costs), embargoes and other catastrophic events.
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