[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,
[[Page 9551]]
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