[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