Central and South West Corporation Consolidated Earnings Report
Dallas, Texas (July 22, 1998) -- Central and South West Corporation (NYSE:CSR) reported consolidated earnings per share for the three-month period ended June 30, 1998 of $0.50 per basic and diluted share compared to $0.39 per basic and diluted share for the same period a year ago. Reported earnings per share for the six months ended June 30, 1998 was $0.78 per basic and diluted share compared to $0.51 per basic and diluted share for the corresponding period last year. Reported earnings per share for the twelve months ended June 30, 1998 was $0.99 per basic and diluted share compared to $1.69 per basic and diluted share for the corresponding period last year.

Second Quarter Earnings
Earnings adjusted for non-recurring factors for the quarter ended June 30, 1998 increased to $0.50 per share from $0.37 per share for the same quarter a year ago. Earnings from CSW’s U.S. Electric companies were higher due primarily to more favorable weather that increased earnings $0.11 per share and lower operations and maintenance expenses. CSW’s U.K. Electric operations were $0.05 above last year due primarily to increased KWH demand from colder weather and foreign tax credits. See the table below for recurring and non-recurring factors that impacted earnings for the quarter ended June 30, 1998.

Year-to-Date Earnings
Earnings adjusted for non-recurring factors for the six months ended June 30, 1998 increased to $0.78 per share from $0.67 per share for the same six month period a year ago. Earnings from CSW’s U.S. Electric companies were higher due primarily to more favorable weather that increased earnings $0.08 per share and lower operations and maintenance expenses. Increased non-fuel revenue was offset in part by lower rates at CSW’s Central Power and Light Company (CPL) and Public Service Company of Oklahoma (PSO) subsidiaries. CSW’s U.K. Electric operations were $0.06 above last year due primarily to earnings from SEEBOARD’s investment in the Medway project and foreign tax credits. See the table below for recurring and non-recurring factors that impacted earnings for the six months ended June 30, 1998.

Twelve Months to Date Earnings
Earnings adjusted for non-recurring factors for the twelve months ended June 30, 1998 increased to $1.99 per share from $1.92 per share for the corresponding period last year. Earnings from CSW’s U.S. Electric companies were higher due primarily to more favorable weather that increased earnings $0.04 per share and lower operations and maintenance expenses. Partially offsetting the increased non-fuel electric revenues were lower rates at CPL and PSO. CSW’s U.K. Electric operations were $0.05 above last year due primarily to earnings from SEEBOARD’s investment in the Medway project and foreign tax credits. CSW’s Energy Services operations were $0.05 below last year due primarily to start-up costs for new telecommunications activities. See the table below for recurring and non-recurring factors that impacted earnings for the twelve months ended June 30, 1998.

KWH Sales
Retail kilowatt-hour sales at CSW’s U.S. Electric companies increased 11.3% for the three months ended June 30, 1998 from the corresponding period last year due primarily to the effects of hotter than normal weather. KWH sales increased 5.3% for both the six and twelve months ended June 30, 1998 over the same periods last year due primarily to the effects of hotter than normal weather and increased customer growth and usage.

Earnings Variance Table
The following table is a summary of CSW's major earnings variances, net of tax, from 1997 to 1998 for the periods ending June 30, 1998:

Periods Ended June 30	QTR	YTD	12ME
1997 Reported Earnings per Share:	$ 0.39	$ 0.51	$ 1.69
1997 Non-Recurring Factors
TRANSOK Sale	0.00	0.00	(0.03)
CPL Rate Case Adjustments	0.00	0.00	0.05
Restructuring Charges	0.00	0.00	0.03
CPL Rate Case (1996 Effect)	0.00	0.10	0.10
El Paso Litigation	0.03	0.11	0.11
Gain/(Loss) on Reacquired Preferred Stock	(0.05)	(0.05)	(0.05)
Other	0.00	0.00	0.02
1997 Earnings from Operations	0.37	0.67	1.92
1998 vs. 1997 Recurring Factors
U.S. Electric
Non Fuel Electric Revenue	0.08	0.04	0.16
Operations and Maintenance	0.06	0.10	0.04
Depreciation and Amortization	(0.01)	(0.02)	(0.09)
Taxes other than Income	(0.02)	(0.01)	(0.05)
Other Income and Deductions	0.00	0.02	0.08
Interest Expense	(0.02)	0.00	(0.05)
Preferred Stock Dividends	0.00	(0.03)	0.03
Other	(0.01)	(0.02)	(0.01)
	0.08	0.08	0.11
U.K. Electric	0.05	0.06	0.05
Diversified Electric	0.01	0.00	(0.02)
Energy Services	(0.02)	(0.02)	(0.05)
Other Diversified	0.00	0.00	(0.02)
Other	0.01	(0.01)	0.00
1998 Earnings per Share from Operations	0.50	0.78	1.99
1998 Non-Recurring Factors
United Kingdom Windfall Profits Tax	0.00	0.00	(0.76)
Asset Write-Offs and Reserves	0.00	0.00	(0.19)
Other	0.00	0.00	(0.05)
1998 Earnings per Share:	$ 0.50	$ 0.78	$ 0.99

 

CSW's business segments referred to in this Earnings News Release are defined below.
U.S. Electric	U.K. Electric	Diversified Electric
Central Power and Light Company Public Service Company of Oklahoma Southwestern Electric Power Company West Texas Utilities Company	SEEBOARD U.S.A.	CSW Energy, Inc. CSW International, Inc. (excludes SEEBOARD U.S.A.)
Energy Services	Other Diversified
C3 Communications, Inc. EnerShop Inc. CSW Energy Services, Inc CSW Power Marketing, Inc. Business Ventures	CSW Credit, Inc. CSW Leasing, Inc Corporate and Other

 Central and South West Corporation is a Dallas-based public utility holding company that owns four U.S. electric utility subsidiaries with 1.7 million customers, a regional electricity company serving 2 million customers in the United Kingdom and nonutility subsidiaries involved in energy-related investments, as well as subsidiaries that offer telecommunications, energy efficiency and financial transactions. On December 22, 1997, Central and South West announced a definitive merger agreement for a tax-free, stock-for-stock transaction with American Electric Power Company, Inc.