35-CERT 1 const.txt RULE 024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 File No. 70-6802 Report Date: October 1, 2000 through December 31, 2000 In the matter of: Central and South West Services, Inc. I. CONSTRUCTION AND FUEL PROJECTS Central and South West Corporation (CSW) is a public utility holding company with four electric operating subsidiaries: Central Power and Light Company (CPL); Public Service Company of Oklahoma (PSO); Southwestern Electric Power Company (SWP) and West Texas Utilities Company (WTU). Central and South West Services, Inc. (CSWS) performs at cost, accounting, engineering, tax, legal, financial, marketing, fuel planning, electronic data processing, centralized economic dispatching of electric power and other services for CSW and its subsidiaries. CSWS is required to file quarterly reports concerning: (a) description of activities for each construction project; (b) method of accounting for each project; (c) information on fuel projects and (d) information on the project billing allocations. (A) METHOD OF ACCOUNTING The cost of materials, labor, outside services and other expenditures directly attributable to construction of the jointly-owned projects are paid by CSWS and SWP as agents for the participating companies. Controlled-disbursement bank accounts for each project and the CSW money pool facilitate funding of construction checks. Each company must provide financing for its share of the construction costs. A summary statement of activity is provided monthly by CSWS and SWP to the participating companies. A series of service ID's and account numbers enables the participating companies to record their respective ownership shares of construction work in progress, retentions payable, accrued sales tax, vendor accounts payable and cash paid. (B) CONSTRUCTION ACTIVITIES COLETO CREEK UNIT #2 This project has been suspended. Accordingly, no new construction or engineering activities occurred on this project during the quarter. CSWS is continuing to provide contract administration, including contract suspension costs, and maintenance of environmental permits during the project's dormant period. No costs were incurred this quarter. WALKER COUNTY UNIT #1 This project has been suspended. Accordingly, no new construction or engineering activities occurred on this project during the quarter. No costs were incurred this quarter.
EXPENDITURES BY PROJECT : (thousands) COLETO WALKER CREEK COUNTY QUARTER ENDED December 31, 2000 CPL $ -- $ -- PSO -- -- SWP -- -- WTU -- -- TOTAL $ -- $ -- EXPENDITURES BY PROJECT : (thousands) COLETO WALKER CREEK COUNTY TWELVE MONTHS ENDED December 31, 2000 CPL $ -- $ -- PSO -- -- SWP -- -- WTU -- -- TOTAL $ -- $ --
(C) FUEL PROJECTS SOUTH HALLSVILLE: Work on this project consisted of overseeing the contract miner's reclamation activities. Land and lignite lease ----------------- maintenance comprised the majority of the work on this project. DOLET HILLS: Land and lignite lease maintenance as well as advance royalty payments comprised the majority of the work on this project. The property is now in production and advanced royalty payments are being recouped.
(D) BASIS FOR PROJECT BILLING ALLOCATIONS SWP PROJECTS: SOUTH DOLET OWNERSHIP PERCENTAGE HALLSVILLE HILLS SWP 85.936% 46.094% NON-AFFILIATED ENTITIES 14.064% 53.906% TOTAL 100.000% 100.000%
The South Hallsville project and the Dolet Hills project are in the production stage. ADMINISTRATIVE AND GENERAL ACTIVITIES: Administrative and general activities included continuing maintenance of a Land Management System. Expenditures for these activities, along with legal, accounting, procurement, employee relations, treasury and information services were $ 146,526 for the fourth quarter.
EXPENDITURES BY PROJECT: (thousands) QUARTER ENDED SOUTH DOLET DECEMBER 31, 2000 HALLSVILLE HILLS (1) (1) CPL -- -- PSO -- -- SWP 1,729 151 WTU -- -- TOTAL $1,729 $151 (1) Excludes non-affiliated interests in these projects. TWELVE MONTHS ENDED SOUTH DOLET December 31, 2000 HALLSVILLE HILLS (1) (1) CPL -- -- PSO -- -- SWP $4,641 $625 WTU -- -- TOTAL $4,641 $625 (1) Excludes non-affiliated interests in these projects.
QUARTER ENDED TWELVE MONTHS ENDED DECEMBER 31, 2000 DECEMBER 31, 2000 BUDGET ACTUAL BUDGET ACTUAL SOUTH HALLSVILLE (1) $148 $1,729 $338 $4,641 DOLET HILLS (1) 486 151 1,570 625 TOTAL $634 $1,880 $1,908 $5,266 (1) Excludes non-affiliated interests in these projects.
SINCE CUMULATIVE EXPENDITURES JANUARY 1, 1984 (thousands) SOUTH HALLSVILLE (1) $39,503 DOLET HILLS (1) 12,311 ABANDONED PROJECTS 24,101 TOTAL $ 75,915 (1) Excludes non-affiliated interests in these projects. II. FUEL PRODUCTION ACTIVITIES
CONTRACT TOTAL TOTAL MINER'S TOTAL TONS TONS DELIVERED COST OF PRODUCED SHIPPED COST/TON FUEL/TON (3) QUARTER ENDED DECEMBER 31, 2000 SOUTH HALLSVILLE (1) 894,900 896,154 $10.43 $10.90 DOLET HILLS (2) 285,950 287,781 $24.11 $26.21 TWELVE MONTHS ENDED DECEMBER 31, 2000 SOUTH HALLSVILLE (1) 2,964,245 2,972,654 $14.24 $16.96 DOLET HILLS (2) 1,146,491 1,177,040 $21.08 $22.77 The above amounts exclude non-affiliated interests in these projects.
(1) Lignite reserves are owned and controlled by SWP, Oklahoma Municipal Power Authority (OMPA) and Northeast Texas Electric Cooperative (NTEC) and mined by Sabine Mining Company. All tonnage was delivered to the Henry W. Pirkey Power Plant which is also owned by SWP, OMPA, and NTEC. The total cost of fuel is the sum of the contract miner's delivered cost, lease maintenance and royalty costs, overhead costs and amortization costs. (2) Lignite reserves are owned and controlled by SWP, Central Louisiana Electric Company, Inc. (CLECO) and OMPA. NTEC acquires its ownership share from SWP once the lignite is delivered to the plant. The lignite is mined by Dolet Hills Mining Venture. All tonnage was delivered to the Dolet Hills Power Plant which is owned by SWP, CLECO, OMPA and NTEC. The total cost of fuel is the sum of the miner's delivered cost, lease maintenance and royalty costs, overhead costs and amortization costs. (3) The cost per ton is estimated each month and then adjusted to actual cost the following month. III. OIL AND GAS ACTIVITIES CPL incurred no expenditures related to the operation and development of existing leases in south Texas. SIGNATURE As requested by order of the Securities and Exchange Commission pursuant to the Public Utility Holding Company Act of 1935, Central and South West Services, Inc. has duly caused this report to be signed on the 23th day of February, 2001. By : /s/ Armando Pena ------------------------- Armando Pena Treasurer