[Federal Register Volume 63, Number 128 (Monday, July 6, 1998)]
[Notices]
[Pages 36460-36462]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17716]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-26891]
Filings Under the Public Utility Holding Company Act of 1935, as
Amended (``Act'')
June 26, 1998.
Notice is hereby given that the following filling(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
application(s) and/or declaration(s) for complete statements of the
proposed transactions(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 July 21, 1998, to the Secretary, Securities and Exchange
Commission, Washington, D.C. 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 July 21, 1998, the application(s) and/or declaration(s),
as filed or as amended, may be granted and/or permitted to become
effective.
New England Electric System (70-9167)
New England Electric System (``NEES''), 25 Research Drive,
Westborough, Massachusetts 01582, a registered holding company, has
filed a post-effective amendment to its declaration under sections 6(a)
and 7 of the Act and rule 54 under the Act.
By order dated March 25, 1998 (HCAR No. 26849) (``March Order''),
the Commission authorized NEES to issue, no later than December 31,
2002, up to one million shares of its common stock to be used to
acquire the stock or assets
[[Page 36461]]
of one or more ``energy-related companies,'' as defined in rule 58
under the Act. The March Order authorized NEES to make the acquisitions
directly or indirectly through a nonutility subsidiary of NEES.
NEES now proposes to increase its authorization under the March
Order to issue an additional one million shares of its common stock, no
later than December 31, 2002, totalling two million shares of its
common stock available to be used to acquire the stock or assets of one
or more ``energy-related companies,'' as defined in rule 58 under the
Act.
Central and South West Corporation, et al. (70-9119)
Central and South West Corporation (``CSW''), a registered holding
company, and Central and South West Services, Inc., a service company
subsidiary of CSW (``Services'' and, together with CSW,
``Applicants''), both at 1616 Woodall Rodgers Freeway, P.O. Box 660164,
Dallas, Texas 75266, have filed an application-declaration under
sections 6(a), 7, 9(a), 10, 11 and 12(b) of the Act, and rules 45 and
54 under the Act.
The Applicants request authority through December 31, 2003 to
permit: (a) Services to engage in the business of marketing, selling,
leasing and renting to consumers certain electric bicycles, electric
tricycles, electric skateboards and electric scooters (``Electric
Vehicles'' or ``EVs''), as well as retrofit kits to convert traditional
bicycles to electric bicycles (collectively, ``EV Sales & Leasing'');
(b) Services to provide financing to, or guarantee borrowings by,
creditworthy commercial and non-commercial customers other than
individuals in connection with their purchase or lease of EVs (``EV
Customer Financing'') utilizing funds available to Services through its
participation in the CSW money pool; and (c) Services to use borrowings
from the CSW money pool to fund the management, operation and
administrative costs of the EV Business and to finance the EV Business
by making loans and providing guarantees and other credit support to
commercial and institutional customers, and CSW to provide guarantees
and other credit support on behalf of Services, up to an aggregate
amount outstanding at any time of $25 million (``EV Business
Financing'', and together with EV Sales & Leasing and EV Customer
Financing, ``EV Business'').
Services proposes to provide EV Sales & Leasing activities to
sporting equipment stores, bicycle shops, non-commercial entities
including universities and government organizations and, on a smaller
scale, to individuals via the Internet. In connection with EV Sales &
Leasing, Services proposes to provide the EV Customer Financing to
support the purchase of Electric Vehicles and to encourage public
utilization of Electric Vehicles for transportation. The Applicants
will obtain funds to finance the EV Business through the CSW money
pool, as authorized by the Commission under prior orders. EV Business
Financing would be conducted through use of the CSW money pool, as
authorized by Commission orders dated March 31, 1993, September 28,
1993, March 18, 1994, June 15, 1994, February 1, 1995, March 21, 1995,
March 28, 1997 and April 3, 1998 (HCAR Nos. 25777, 25897, 26007, 26066,
26226, 26254, 26697 and 26854, respectively).
EV Customer Financing provided by Services may take the form of
guarantees, capital leases, operating leases or promissory notes with
terms of one to five years, with pricing to be competitive with that
readily available in the market for similar financial instruments.
Loans made by Services directly or, with respect to which Services, or
CSW on behalf of Services, is providing a guarantee, will have an
average annual interest rate not to exceed prime plus 7%. These loans
may be unsecured or secured by a lien or other security interest in the
Electric Vehicle or other real or personal property other than utility
assets. Services will obtain funding through its participation in the
CSW money pool system. In some instances, the Applicants expect that
Services may place the EV Customer Financing with third party lenders
and leasing companies.
By increasing the availability of Electric Vehicles through sales
and financing efforts, the Applicants hope to advance new electro-
technologies and the use of electricity as an alternative source of
fuel for vehicles. The Applicants also anticipate that the marketing
and sale of new technologies associated with the Electric Vehicles will
increase customer awareness of other potential uses of electricity,
resulting in an increase in overall demand for electric service, both
within the states in CSW's service areas and in surrounding regions.
CSW has four operating company subsidiaries--Public Service Company of
Oklahoma, Southwestern Electric Power Company, West Texas Utilities and
Central Power & Light Company (``Operating Companies'')--which service
portions of Texas, Oklahoma, Louisiana and Arkansas (``Service
Areas''). The Applicants expect that promotion of a new market for
Electric Vehicles will spur demand for electricity and help the
Operating Companies make a successful transition from a regulated
industry to a competitive one. EV Sales & Leasing activities are also
expected to enhance CSW's name recognition and customer loyalty.
The Applicants propose to engage in the EV Business both within the
Service Areas of the CSW Operating Companies and in all other areas of
the United States. During the twelve-month period beginning on the
first day of January in the year following the date the Applicants
commence the EV Business under approval of the Commission, and for each
subsequent calendar year, total revenues of Services derived from the
EV Business in the states comprising the Service Areas will exceed
total revenues of Services derived from the EV Business in all other
states.
The Applicants will treat its EV Business as a separate cost an
revenue center for accounting purposes. CSW proposes to provide EV
Business Financing to Services in an aggregate amount outstanding at
any time of up to $25 million. These funds would be designated for
specific use by Services in support of the EV Business. CSW further
proposes to guarantee or to act as surety on bonds, indebtedness and
performance and other obligations undertaken by Services in connection
with its EV Business. Guarantees or arrangements may be made from time
to time through December 31, 2002, and will expire or terminate no
later than December 31, 2003. The total amount of all loans and
guarantees for which authorization is sought will not exceed $25
million at any time outstanding.
The Applicants state that Services currently has an insufficient
staff to engage in the EV Business and will hire outside individuals or
firms to conduct the EV Business activities. Hiring will be done on a
contract basis, and the additional personnel will be deemed independent
contractors of Services. These independent contractors will be paid by
Applicants through commissions only and will receive no salary or
employee benefits from Applicants. Through the date of the filing of
the application-declaration, Applicants have executed one agreement
with a manufacturer or certain Electric Vehicles which gives Applicants
the right to market, sell, lease and rent these vehicles in several
states.
Indiana Michigan Power Company (70-9315)
Indiana Michigan Power Company (``I&M''), One Summit Square, P.O.
Box
[[Page 36462]]
60, Fort Wayne, Indiana 46801, an electric public utility subsidiary
company of American Electric Power Company, Inc., a registered holding
company, has filed an application-declaration under sections 6(a), 7,
9(a) and 10 and rule 54 under the Act.
I&M proposes to guarantee loan payments, including principal,
interest and penalties, on a promissory note (``Note'') from one of its
industrial customers, Iron Dynamics, Inc. (``IDI''), an Indiana
corporation, which is constructing a main mill substation, power
distribution facilities from main mill to coal preparation facilities,
coal reparation facilities and submerged arc furnace transformers and
vaults (``Equipment'') to be installed on IDI's property in DeKalb,
Indiana, which is in I&M's service territory. The Note will evidence a
loan by GE Capital Corporation (``GE Capital'') or a similar lender
(``Lender'') to IDI in an amount up to $6.5 million to acquire the
Equipment. I&M will supply electric service to IDI's facility.
The loan will be made under a loan agreement (``Loan Agreement'')
which provides, among other things, that the interest rate on the Note
may be variable or fixed. The variable interest rate will be equal to
an index rate (``Index Rate'') plus 1.75%. On the date the initial loan
is made, the index Rate will be the interest rate equal to the per
annum interest rate for commercial paper issued by GE Capital for the
period of time closest to 90-days on such date (``CPR''), and the Index
Rate will be adjusted every 90 days and be equal to the CPR in effect
on the tenth day preceding the end of each 90 day period during the
term of the loan. If, for any reason, GE Capital does not issue the
commercial paper on the applicable date, the CPR will be equal to the
rate listed for ``3 Month'' commercial paper under the column
indicating an average rate as stated in the Federal Reserve Statistical
Release H. 15 (519) for the calendar month preceding the calendar month
in which the 90-day period ends. If, for any reason, the Federal
Reserve Statistical Release H.15 (519) is no longer published, the CPR
will be equal to the latest commercial paper rate for high grade
unsecured notes of 90-day maturity sold through dealers by major
corporations in multiples of $1,000, as indicated in the ``Money
Rates'' column of the Wall Street Journal, Eastern Edition, published
on the tenth day prior to the end of each 90-day period or the first
business day thereafter.
Under the terms of the Loan Agreement, IDI may elect to convert the
interest rate on the Note to a fixed rate. The fixed rate will be equal
to 1.75% over the average of one, three and five-year U.S. Treasuries
as published in the Wall Street Journal on the date of IDI's election
to convert to a fixed rate. IDI is responsible to the Lender for any
costs incurred as a result of converting to a fixed rate.
The Notes will mature in not more than 96 months and be secured by
a first lien on the Equipment. There will be no consideration paid by
IDI for the guarantee.
In an alternative to I&M's loan guarantee, I&M requests authority
to make a direct loan to IDI and to acquire the Note on substantially
the same terms as the loan from GE Capital or Lender to IDI.
For the Commission, by the Division of Investment Management,
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 98-17716 Filed 7-2-98; 8:45 am]
BILLING CODE 8010-01-M
