[Federal Register: February 26, 1999 (Volume 64, Number 38)] [Notices] [Page 9550-9551] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr26fe99-109] ======================================================================= ----------------------------------------------------------------------- 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. --------------------------------------------------------------------------- \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. --------------------------------------------------------------------------- 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\ --------------------------------------------------------------------------- \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