99-4777. Filings Under the Public Utility Holding Company Act of 1935, as Amended (``Act'')  

  • [Federal Register Volume 64, Number 38 (Friday, February 26, 1999)]
    [Notices]
    [Pages 9550-9551]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-4777]
    
    
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    SECURITIES AND EXCHANGE COMMISSION
    
    [Release No. 35-26979]
    
    
    Filings Under the Public Utility Holding Company Act of 1935, as 
    Amended (``Act'')
    
    February 19, 1999.
        Notice is hereby given that the following filing(s) has/have been 
    made with the Commission pursuant to provisions of the Act and rules 
    promulgated under the Act. All interested persons are referred to the 
    applications(s) and/or declaration(s) for complete statements of the 
    proposed transaction(s) summarized below. The application(s) and/or 
    declaration(s) and any amendments is/are available for public 
    inspection through the Commission's Office of Public Reference.
        Interested persons wishing to comment or request a hearing on the 
    application(s) and/or declaration(s) should submit their views in 
    writing by March 16, 1999, to the Secretary, Securities and Exchange 
    Commission,
    
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    Washington, DC 20549, and serve a copy on the relevant applicant(s) 
    and/or declarant(s) at the address(es) specified below. Proof of 
    service (by affidavit or, in case of an attorney at law, by 
    certificate) should be filed with the request. Any request for hearing 
    should identify specifically the issues of fact or law that are 
    disputed. A person who so requests will be notified of any hearing, if 
    ordered, and will receive a copy of any notice or order issued in the 
    matter. After March 16, 1999, the application(s) and/or declaration(s), 
    as filed or as amended, may be granted and/or permitted to become 
    effective.
    
    The Southern Company
    
        The Southern Company (``Southern''), 270 Peachtree Street, NW, 
    Atlanta, Georgia 30303, a registered holding company, has filed a post-
    effective amendment under sections 6(a), 7, 12(b), 32 and 33 of the Act 
    and rules 45, 53, and 54 under the Act.
        Southern is currently authorized under the terms of four separate 
    orders to finance the operations of its subsidiaries by (1) issuing and 
    selling additional shares of its common stock, (2) issuing guarantees 
    of the securities of certain subsidiaries, and (3) issuing notes and 
    commercial paper. By order dated August 3, 1995 (HCAR No. 26348), 
    Southern is authorized to issue and sell, through December 31, 1999, up 
    to 25 million additional shares of its authorized common stock 
    (adjusted as needed to account for a share split). By order dated 
    August 5, 1995 (HCAR No. 26347), Southern is authorized to issue and 
    sell, through December 31, 1999, additional shares of its authorized 
    common stock under its dividend reinvestment and employee savings and 
    stock ownership plans, in an amount equal to 37 million shares of stock 
    (adjusted as needed to account for a share split). By order dated 
    February 2, 1996 (HCAR No. 26468), Southern is authorized, through 
    December 31, 2000, to guarantee the securities of one or more exempt 
    wholesale generators (``EWGs'') or foreign utility companies 
    (``FUCOs'') (collectively, ``Exempt Projects'') or subsidiaries which 
    directly or indirectly hold interests in Exempt Projects 
    (``Intermediate Subsidiaries''), in amounts that in the aggregate would 
    not exceed $1.2 billion outstanding.\1\ By order dated March 13, 1996 
    (HCAR No. 26489), Southern is authorized to issue and sell, through 
    March 31, 2000, notes and/or commercial paper in an aggregate principal 
    amount not exceed $2 billion outstanding.
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        \1\ Southern was also authorized in this order to issue 
    guarantees, through December 31, 2003, with respect to other 
    obligations of Exempt Projects, Intermediate Subsidiaries and other 
    entities, in amounts not to exceed $800 million.
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        By order dated April 1, 1996 (HCAR No. 26501) (``100% Order''), 
    Southern is authorized to invest the proceeds of the issuance and sale 
    of common stock and debt in Exempt Projects and to guarantee the 
    obligations of these entities, so long as its ``aggregate investment,'' 
    as defined in rule 53 of the Act, in Exempt Projects does not exceed 
    100% of Southern's ``consolidated retained earnings,'' as defined in 
    the rule. As of December 31, 1998, Southern has invested or committed 
    to invest, directly or indirectly, an aggregate amount of approximately 
    $3.566 billion in Exempt Projects, or approximately 90% of its 
    consolidated retained earnings. Southern's consolidated retained 
    earnings was approximately $3.944 billion at December 31, 1998.
        Southern now seeks to modify the limitation in the 100% Order so 
    that it may invest the proceeds of authorized Southern financings in 
    Exempt Projects, through December 31, 2005, in an aggregate amount not 
    to exceed the greater of $4 billion over amounts authorized in the 100% 
    Order, or 175% of consolidated retained earnings (``Proposed Investment 
    Limitation''). In addition, Southern seeks to further modify the 
    limitation in the 100% Order so that it may issue guarantees of the 
    securities or other obligations of Exempt Projects in an aggregate 
    amount that, when combined with its investment in Exempt Projects, does 
    not exceed the Proposed Investment Limitation.
        Southern asserts that the use of financing proceeds and guarantees 
    to make investments in Exempt Projects in an aggregate amount of up to 
    the Proposed Investment Limitation will not have a substantial adverse 
    impact on the financial integrity of the Southern system, or an adverse 
    impact on any utility subsidiary of Southern, its customers, or the 
    ability of the affected state commissions to protect customers. In 
    addition, Southern states that it will not seek recovery through higher 
    rates to its utility subsidiaries' customers in order to compensate for 
    any possible losses that may be sustained on investments in Exempt 
    Projects or for any inadequate returns on these investments.
    
    American Electric Power Co. (70-8779)
    
        American Electric Power Company, Inc. (``AEP''), a registered 
    holding company, 1 Riverside Plaza, Columbus, Ohio, 43215, has filed a 
    post-effective amendment to an application-declaration filed under 
    sections 6(a), 7, 9(a), 10 and 12(b) of the Act and rules 45 and 54 
    under the Act.
        By orders dated September 13, 1996 (HCAR No. 26572), September 27, 
    1996 (HCAR No. 26583), May 2, 1997 (HCAR No. 26713) and November 30, 
    1998 (HCAR 26947) (collectively ``Prior Orders''), AEP was authorized, 
    among other things, to guarantee, through December 31, 2000, up to $100 
    million of debt (``Guarantee Authority'') of certain nonutility 
    subsidiaries (``New Subsidiaries'').
        AEP now proposes, through December 31, 2002, to: 1) extend the 
    Guarantee Authority; and 2) increase the Guarantee Authority for New 
    Subsidiaries from $100 million up to $200 million under the terms and 
    conditions stated in the Prior Orders. AEP states that this increase in 
    its Guarantee Authority is to support the additional brokering and 
    marketing activities associated with its recent acquisition of certain 
    gas trading assets.\2\
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        \2\ See American Electric Power Company Inc., Holding Company 
    Act Release No. 26933 (Nov. 2, 1998) (authorizing acquisition of 
    energy assets incidental to marketing, brokering and trading 
    activities).
    
        For the Commission by the Division of Investment Management, 
    under delegated authority.
    Jonathan G. Katz,
    Secretary.
    [FR Doc. 99-4777 Filed 2-25-99; 8:45 am]
    BILLING CODE 8010-01-M
    
    
    

Document Information

Published:
02/26/1999
Department:
Securities and Exchange Commission
Entry Type:
Notice
Document Number:
99-4777
Pages:
9550-9551 (2 pages)
Docket Numbers:
Release No. 35-26979
PDF File:
99-4777.pdf