Filings Under the Public Utility Holding Company Act of 1935, as Amended (“Act”), 53259-53260 [E5-4850]

Download as PDF Federal Register / Vol. 70, No. 172 / Wednesday, September 7, 2005 / Notices Room (PDR) Reference staff at 1–800– 397–4209, 301–415–4737, or by e-mail to pdr@nrc.gov. These documents may also be viewed electronically on the public computers located at the NRC’s PDR, O1 F21, One White Flint, 11555 Rockville Pike, Rockville, MD 20852. The PDR reproduction contractor will copy documents for a fee. Dated at Rockville, Maryland, this 16th day of August, 2005. For the Nuclear Regulatory Commission. Daniel M. Gillen, Deputy Director, Decommissioning Directorate, Division of Waste Management and Environmental Protection, Office of Nuclear Material Safety and Safeguards. [FR Doc. E5–4852 Filed 9–6–05; 8:45 am] BILLING CODE 7590–01–P NUCLEAR REGULATORY COMMISSION Sunshine Act Meeting AGENCY HOLDING THE MEETINGS: Nuclear Regulatory Commission. DATE: Weeks of September 5, 12,19, 26, October 3, 10, 2005. PLACE: Commissioners’ Conference Room, 11555 Rockville Pike, Rockville, Maryland. STATUS: Public and Closed. MATTERS TO BE CONSIDERED: Week of September 5, 2005 Wednesday, September 7, 2005 9 a.m. Discussion of Security Issues (Closed—Ex. 1). 1:30 p.m. Discussion of Security Issues (Closed—Ex. 3 & 9). Thursday, September 8, 2005 9:25 a.m. Affirmation Session (Public Meeting) (Tentative). a. Private Fuel Storage Independent Spent Fuel Storage Installation) Docket No. 72–22–ISFSI; Review of Utah Contention K (Aircraft Crash Hazards) Rulings (Tentative). 9:30 a.m. Discussion of Security Issues (Closed—Ex. 1). Week of September 12, 2005—Tentative There are no meetings scheduled for the Week of September 12, 2005. Week of October 3, 2005—Tentative There are no meetings scheduled for the Week of October 3, 2005. Week of October 10, 2005—Tentative There are no meetings scheduled for the Week of October 10, 2005. *The schedule for Commission meetings is subject to change on short notice. To verify the status of meetings call (recording)—(301) 415–1292. Contact person for more information: Michelle Schroll, (301) 415–1662. * * * * * The NRC Commission Meeting Schedule can be found on the Internet at: https://www.nrc.gov/what-we-do/ policy-making/schedule.html. * * * * * The NRC provides reasonable accommodation to individuals with disabilities where appropriate. If you need a reasonable accommodation to participate in these public meetings, or need this meeting notice or the transcript or other information from the public meetings in another format (e.g. braille, large print), please notify the NRC’s Disability Program Coordinator, August Spector, at 301–415–7080, TDD: 301–415–2100, or by e-mail at aks@nrc.gov, Determinations on requests for reasonable accommodation will be made on a case-by-case basis. * * * * * This notice is distributed by mail to several hundred subscribers; if you no longer wish to receive it, or would like to be added to the distribution, please contact the Office of the Secretary, Washington, DC 20555 (301–415–1969). In addition, distribution of this meeting notice over the Internet system is available. If you are interested in receiving this Commission meeting schedule electronically, please send an electronic message to dkw@nrc.gov. Dated: September 1, 2005. Dave Gamberoni, Office of the Secretary. [FR Doc. 05–17776 Filed 9–2–05; 10:04 am] BILLING CODE 7590–01–M SECURITIES AND EXCHANGE COMMISSION [Release No. 35–28024] Week of September 19, 2005—Tentative There are no meetings scheduled for the Week of September 19, 2005. Filings Under the Public Utility Holding Company Act of 1935, as Amended (‘‘Act’’) August 31, 2005. Week of September 26, 2005—Tentative There are no meetings scheduled for the Week of September 26, 2005. VerDate Aug<18>2005 18:03 Sep 06, 2005 Jkt 205001 Notice is hereby given that the following filing(s) has/have been made with the Commission pursuant to provisions of the Act and rules PO 00000 Frm 00112 Fmt 4703 Sfmt 4703 53259 promulgated under the Act. All interested persons are referred to the application(s) and/or declaration(s) for complete statements of the proposed transaction(s) summarized below. The application(s) and/or declaration(s) and any amendment(s) is/are available for public inspection through the Commission’s Branch 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 September 26, 2005, to the Secretary, Securities and Exchange Commission, 100 F Street, NE., Washington, DC 20549–9303, 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 the case of an attorney at law, by certificate) should be filed with the request. Any request for hearing should identify specifically the issues of facts 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 September 26, 2005, the application(s) and/or declaration(s), as filed or as amended, may be granted and/or permitted to become effective. American Electric Power Company, Inc., et al. (70–10313) American Electric Power Company, Inc. (‘‘AEP’’), a registered holding company, and its wholly owned indirect nonutility subsidiary AEP Credit, Inc. (‘‘AEP Credit’’), both at 1 Riverside Plaza, Columbus, Ohio 43215, have filed an application with the Commission under sections 9(a) and 10 of the Act and rule 54 under the Act. I. Background By order dated June 14, 2000 (Holding Company Act Release No. 27186), the Commission authorized AEP to acquire all of the issued and outstanding common stock of Central and South West Corporation (‘‘CSW’’), a registered holding company, and all of its subsidiaries, including CSW Credit, Inc. (‘‘CSW Credit’’). On August 21, 2000, CSW Credit was renamed AEP Credit, and continued to operate under various grants of authority, some of which are described below. A. Prior Orders By order dated July 19, 1985 (Holding Company Act Release No. 23767, ‘‘Original Order’’), the Commission authorized AEP Utilities, Inc. (‘‘AEP Utilities’’), formerly known as Central and South West Corporation, to organize a special-purpose entity, CSW Credit, to E:\FR\FM\07SEN1.SGM 07SEN1 53260 Federal Register / Vol. 70, No. 172 / Wednesday, September 7, 2005 / Notices factor the accounts receivable of AEP’s public-utility company subsidiaries. The Commission also authorized CSW Credit to issue debt securities to finance its accounts receivable purchases and AEP Utilities to make equity investments in CSW Credit. See Original Order. By order dated July 31, 1986, (Holding Company Act Release No. 24157, ‘‘1986 Order’’), the Commission authorized, among other things, CSW Credit to expand the scope of the activities to include the factoring receivables of nonassociate utilities. As a condition of the 1986 Order, CSW Credit was required to limit its acquisition of utility receivables from non-associate utilities (‘‘NonAssociate Limit’’). Later, as a condition of granting CSW Credit temporary relief from the Non-Associate Limit, the Commission imposed upon the company a quarterly reporting requirement (‘‘Rule 24 Reporting Requirement’’). See Holding Co. Act Release No. 26684 (March 11, 1997). The Commission required that CSW Credit maintain the percentage of its debt to equity at not less than 5% debt and 95% equity (‘‘Debt-Equity Requirement’’). See Holding Company Act Release No. 25138 (August 30, 1990). Most recently, the Commission authorized AEP Credit to continue to factor the accounts receivable of associate and non-associate utility companies, subject to certain conditions, through September 30, 2005. B. AEP Credit’s Current Operations AEP Credit has entered into agreements to purchase accounts receivable from the following publicutility company subsidiaries of AEP: Appalachian Power Company, Columbus Southern Power Company, Indiana Michigan Power Company, Kentucky Power Company, Kingsport Power Company, Ohio Power Company, Public Service Company of Oklahoma, Southwestern Electric Company, and Wheeling Power Company (collectively, ‘‘Operating Companies’’). AEP Credit no longer purchases accounts receivable from non-associate public-utility companies. Purchases of accounts receivable are at a discount, based on AEP Credit’s cost of funds and collection history.1 1 Currently, there are two components of the discount calculation: (1) A financing cost component; and (2) a bad debt component. The financing cost component (‘‘Carrying Charge’’) is based on AEP Credit’s actual weighted average cost of funds. It includes the actual cost of amounts borrowed from the external markets (currently bank conduits), a return on equity contribution from Credit’s parent and actual costs of any amounts VerDate Aug<18>2005 15:05 Sep 06, 2005 Jkt 205001 AEP Credit then sells the accounts receivable to third party financial institutions. Applicants state that transactions between AEP Credit and the Operating Companies comply with the ‘‘at cost’’ rules under the Act and, consequently, there is no crosssubsidization. AEP Credit has entered into agency agreements with each of the Operating Companies. Those agreements provide that the Operating Companies act as a collection agent for the receipt of customer payments and collection and remit these payments to AEP Credit. The amount of the receivables bought by AEP Credit varies from month to month, based on the electric usage by the Operating Company’s customers. These sales are on a non-recourse basis to the Operating Companies. The Operating Companies are not required to sell their accounts receivable to AEP Credit for any specified period of time; an Operating Company may terminate its relationship with AEP Credit on 30 days notice. AEP Credit funds its purchases of the receivables using funds it obtains under a receivables purchase agreement (‘‘RPA’’). Under the RPA, AEP Credit sells a certain undivided ownership interest in the accounts receivable on a revolving basis to a group of financial institutions, mentioned above. The RPA also provides that American Electric Power Service Corporation (‘‘AEP Service’’), a service company subsidiary of AEP, administers the collections received by AEP Credit and reports information regarding the receivables and collections to the agent of the financial institutions. AEP Service is reimbursed for all costs and expenses it incurs in connection with the services it provides under the agreement. In addition to the funds obtained under the RPA, AEP Credit obtains funds to purchase receivables through equity contributions by AEP and a subordinated revolving loan by AEP. Sales of the accounts receivable by the Operating Companies qualify for treatment as true sales of assets under Financial Accounting Standards Board Statement No. 140 (rather than as a loan secured by the receivables). AEP Credit is intended to be bankruptcy remote to borrowed through the subordinated loan from AEP. Credit’s actual cost of equity is the State authorized return on common equity of each individual Operating Company. AEP Credit’s interest charges to the Operating Companies used in the Carrying Charge have always been and are anticipated to be less than the ‘‘prime rate of interest,’’ as that term is normally used. The bad debt component is based on AEP Credit’s actual bad debt charge-offs for the receivable pool. It is calculated as a rolling average of the actual historical charge-off statistics for the receivable pools of each Operating Company. PO 00000 Frm 00113 Fmt 4703 Sfmt 4703 isolate the receivables from the creditors of the Operating Companies. Applicants state that the factoring program allows the Operating Companies to reduce their working capital needs by accelerating the receipt of cash from the collection of customer accounts receivable thereby reducing the dependence of the Operating Companies upon more costly sources of working capital. Credit, as a specialpurpose financing entity, can borrow money more cheaply than the Operating Companies can individually. Through the use of Credit, the Operating Companies are able to consolidate their accounts receivable into a larger pool and eliminate duplicate administrative costs in administering the program. II. Requested Authority Applicants request (1) authority for AEP to retain AEP Credit, whose business consists solely of factoring the accounts receivable of associate publicutility companies; (2) request that the Commission eliminate the Rule 24 Reporting Requirement; and (3) that the Commission eliminate the Debt-Equity Requirement. For the Commission by the Division of Investment Management, pursuant to delegated authority. Jonathan G. Katz, Secretary. [FR Doc. E5–4850 Filed 9–6–05; 8:45 am] BILLING CODE 8010–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–52360; File No. SR–Amex– 2004–76] Self-Regulatory Organizations; American Stock Exchange LLC; Notice of Filing of Proposed Rule Change and Amendment Nos. 1 and 2 Relating to Contingency Trading Procedures August 30, 2005. Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’),1 and Rule 19b–4 thereunder,2 notice is hereby given that on September 10, 2004, the American Stock Exchange LLC (‘‘Amex’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II, and III below, which Items have been prepared by the Exchange. On August 26, 2005, the Exchange submitted Amendment No. 1 to the 1 15 2 17 E:\FR\FM\07SEN1.SGM U.S.C. 78s(b)(1). CFR 240.19b–4. 07SEN1

Agencies

[Federal Register Volume 70, Number 172 (Wednesday, September 7, 2005)]
[Notices]
[Pages 53259-53260]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-4850]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-28024]


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

August 31, 2005.
    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 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendment(s) is/are available for public 
inspection through the Commission's Branch 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 September 26, 2005, to the Secretary, Securities and 
Exchange Commission, 100 F Street, NE., Washington, DC 20549-9303, 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 the 
case of an attorney at law, by certificate) should be filed with the 
request. Any request for hearing should identify specifically the 
issues of facts 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 September 26, 2005, the 
application(s) and/or declaration(s), as filed or as amended, may be 
granted and/or permitted to become effective.

American Electric Power Company, Inc., et al. (70-10313)

    American Electric Power Company, Inc. (``AEP''), a registered 
holding company, and its wholly owned indirect nonutility subsidiary 
AEP Credit, Inc. (``AEP Credit''), both at 1 Riverside Plaza, Columbus, 
Ohio 43215, have filed an application with the Commission under 
sections 9(a) and 10 of the Act and rule 54 under the Act.

I. Background

    By order dated June 14, 2000 (Holding Company Act Release No. 
27186), the Commission authorized AEP to acquire all of the issued and 
outstanding common stock of Central and South West Corporation 
(``CSW''), a registered holding company, and all of its subsidiaries, 
including CSW Credit, Inc. (``CSW Credit''). On August 21, 2000, CSW 
Credit was renamed AEP Credit, and continued to operate under various 
grants of authority, some of which are described below.

A. Prior Orders

    By order dated July 19, 1985 (Holding Company Act Release No. 
23767, ``Original Order''), the Commission authorized AEP Utilities, 
Inc. (``AEP Utilities''), formerly known as Central and South West 
Corporation, to organize a special-purpose entity, CSW Credit, to

[[Page 53260]]

factor the accounts receivable of AEP's public-utility company 
subsidiaries. The Commission also authorized CSW Credit to issue debt 
securities to finance its accounts receivable purchases and AEP 
Utilities to make equity investments in CSW Credit. See Original Order.
    By order dated July 31, 1986, (Holding Company Act Release No. 
24157, ``1986 Order''), the Commission authorized, among other things, 
CSW Credit to expand the scope of the activities to include the 
factoring receivables of non-associate utilities. As a condition of the 
1986 Order, CSW Credit was required to limit its acquisition of utility 
receivables from non-associate utilities (``Non-Associate Limit''). 
Later, as a condition of granting CSW Credit temporary relief from the 
Non-Associate Limit, the Commission imposed upon the company a 
quarterly reporting requirement (``Rule 24 Reporting Requirement''). 
See Holding Co. Act Release No. 26684 (March 11, 1997).
    The Commission required that CSW Credit maintain the percentage of 
its debt to equity at not less than 5% debt and 95% equity (``Debt-
Equity Requirement''). See Holding Company Act Release No. 25138 
(August 30, 1990).
    Most recently, the Commission authorized AEP Credit to continue to 
factor the accounts receivable of associate and non-associate utility 
companies, subject to certain conditions, through September 30, 2005.

B. AEP Credit's Current Operations

    AEP Credit has entered into agreements to purchase accounts 
receivable from the following public-utility company subsidiaries of 
AEP: Appalachian Power Company, Columbus Southern Power Company, 
Indiana Michigan Power Company, Kentucky Power Company, Kingsport Power 
Company, Ohio Power Company, Public Service Company of Oklahoma, 
Southwestern Electric Company, and Wheeling Power Company 
(collectively, ``Operating Companies''). AEP Credit no longer purchases 
accounts receivable from non-associate public-utility companies.
    Purchases of accounts receivable are at a discount, based on AEP 
Credit's cost of funds and collection history.\1\ AEP Credit then sells 
the accounts receivable to third party financial institutions. 
Applicants state that transactions between AEP Credit and the Operating 
Companies comply with the ``at cost'' rules under the Act and, 
consequently, there is no cross-subsidization.
---------------------------------------------------------------------------

    \1\ Currently, there are two components of the discount 
calculation: (1) A financing cost component; and (2) a bad debt 
component. The financing cost component (``Carrying Charge'') is 
based on AEP Credit's actual weighted average cost of funds. It 
includes the actual cost of amounts borrowed from the external 
markets (currently bank conduits), a return on equity contribution 
from Credit's parent and actual costs of any amounts borrowed 
through the subordinated loan from AEP. Credit's actual cost of 
equity is the State authorized return on common equity of each 
individual Operating Company. AEP Credit's interest charges to the 
Operating Companies used in the Carrying Charge have always been and 
are anticipated to be less than the ``prime rate of interest,'' as 
that term is normally used. The bad debt component is based on AEP 
Credit's actual bad debt charge-offs for the receivable pool. It is 
calculated as a rolling average of the actual historical charge-off 
statistics for the receivable pools of each Operating Company.
---------------------------------------------------------------------------

    AEP Credit has entered into agency agreements with each of the 
Operating Companies. Those agreements provide that the Operating 
Companies act as a collection agent for the receipt of customer 
payments and collection and remit these payments to AEP Credit. The 
amount of the receivables bought by AEP Credit varies from month to 
month, based on the electric usage by the Operating Company's 
customers.
    These sales are on a non-recourse basis to the Operating Companies. 
The Operating Companies are not required to sell their accounts 
receivable to AEP Credit for any specified period of time; an Operating 
Company may terminate its relationship with AEP Credit on 30 days 
notice.
    AEP Credit funds its purchases of the receivables using funds it 
obtains under a receivables purchase agreement (``RPA''). Under the 
RPA, AEP Credit sells a certain undivided ownership interest in the 
accounts receivable on a revolving basis to a group of financial 
institutions, mentioned above. The RPA also provides that American 
Electric Power Service Corporation (``AEP Service''), a service company 
subsidiary of AEP, administers the collections received by AEP Credit 
and reports information regarding the receivables and collections to 
the agent of the financial institutions. AEP Service is reimbursed for 
all costs and expenses it incurs in connection with the services it 
provides under the agreement.
    In addition to the funds obtained under the RPA, AEP Credit obtains 
funds to purchase receivables through equity contributions by AEP and a 
subordinated revolving loan by AEP.
    Sales of the accounts receivable by the Operating Companies qualify 
for treatment as true sales of assets under Financial Accounting 
Standards Board Statement No. 140 (rather than as a loan secured by the 
receivables). AEP Credit is intended to be bankruptcy remote to isolate 
the receivables from the creditors of the Operating Companies.
    Applicants state that the factoring program allows the Operating 
Companies to reduce their working capital needs by accelerating the 
receipt of cash from the collection of customer accounts receivable 
thereby reducing the dependence of the Operating Companies upon more 
costly sources of working capital. Credit, as a special-purpose 
financing entity, can borrow money more cheaply than the Operating 
Companies can individually. Through the use of Credit, the Operating 
Companies are able to consolidate their accounts receivable into a 
larger pool and eliminate duplicate administrative costs in 
administering the program.

II. Requested Authority

    Applicants request (1) authority for AEP to retain AEP Credit, 
whose business consists solely of factoring the accounts receivable of 
associate public-utility companies; (2) request that the Commission 
eliminate the Rule 24 Reporting Requirement; and (3) that the 
Commission eliminate the Debt-Equity Requirement.

    For the Commission by the Division of Investment Management, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. E5-4850 Filed 9-6-05; 8:45 am]
BILLING CODE 8010-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.