********************************************************    
                         NOTICE
********************************************************

This document was converted from
WordPerfect to ASCII Text format.

Content from the original version of the document such as
headers, footers, footnotes, endnotes, graphics, and page numbers
will not show up in this text version.

All text attributes such as bold, italic, underlining, etc. from the
original document will not show up in this text version.

Features of the original document layout such as
columns, tables, line and letter spacing, pagination, and margins
will not be preserved in the text version.

If you need the complete document, download the
WordPerfect version or Adobe Acrobat version, if available.

*****************************************************************
                                                  FCC 96-152
                           Before the
               FEDERAL COMMUNICATIONS COMMISSION
                        Washington, D.C.
                                



In re Application of                    )
CSW Communications, Inc.           )
for Status as an Exempt            )
Telecommunications Company         )          File No. ETC-96-1
under the Public Utility Holding Company     )
Act of 1935, As Amended by Section 103  )              
of the Telecommunications Act of 1996   )    


                             ORDER
                                
Adopted:  April 3, 1996                 Released:  April 4, 1996 
By the Commission:

     1.   On February 8, 1996, CSW Communications, Inc. ("CSW Communications")
filed for a determination of "exempt telecommunications company" status under Section 34(a)(1)
of the Public Utility Holding Company Act of 1935 ("PUHCA"), as added by Section 103 of the
Telecommunications Act of 1996.  CSW Communications is a subsidiary of Central and South
West Corporation ("CSW"), a Delaware corporation and a registered holding company under
PUHCA.  In this Order we grant the application, which was unopposed.  

     2.   Under Section 34(a)(1) of PUHCA, an "exempt telecommunications company"
("ETC") is any person determined by the Federal Communications Commission to be "engaged
directly or indirectly, wherever located, through one or more affiliates (as defined in section
2(a)(11)(B) of PUHCA), and exclusively in the business of providing (A) telecommunications
services; (B) information services; (C) other services or products subject to the jurisdiction of the
[Commission]; or (d) products or services that are related or incidental to the provision of a
product or service described in subparagraph (A), (B) or (C)."  A person applying in good faith
for a determination of ETC status under Section 34(a)(1) is deemed to be an ETC until the
Commission renders a decision.  Moreover, the Commission must make this determination
within 60 days of the receipt of an application.  Finally, the Commission is required to notify the
Securities and Exchange Commission ("SEC") whenever it determines that a person is an exempt
telecommunications company.

     3.   Prior to the enactment of the new legislation, it was difficult for registered holding
companies to enter into telecommunications businesses.  However, Congress recognized that
holding company entry into telecommunications industries could "significantly promote and
accelerate competition in telecommunications services and deployment of advanced networks"
and could also result in lower prices and greater choice for consumers.  Section 34(a)(1) of
PUHCA thus was designed to foster such entry by allowing holding companies to enter
telecommunications businesses by acquiring and maintaining an interest in an "exempt
telecommunications company."

     4.   In its application, CSW Communications states that it will be engaged, directly or
indirectly, and exclusively in the business of providing telecommunications and information
services, as well as products or services that are "related or incidental to" the provision of such
services, or that fall within the jurisdiction of the Commission. Specifically, CSW
Communications states that it intends to construct a fiber optic system that will be used to
provide utility communications services and demand-side management services to CSW's public
utility companies, their affiliates and customers, and to lease reserve capacity to non-affiliated
third parties that provide other communications services.  In addition, CSW states that it may
offer mobile radio service to CSW's public utility companies and affiliates, their customers, and
non-affiliated third parties that such entities can use to maintain the reliability of CSW's electric
system and to provide other energy services.  CSW further states that it intends to provide to its
customers and non-affiliated third parties Customer Choice & Control, an energy management
service that relies on advanced communications systems.  Accordingly, CSW Communications
represents that it is an exempt telecommunications company under Section 34(a)(1) of PUHCA. 
     
     5.   Based upon the representations contained in CSW Communications' application,
the Commission determines that CSW Communications is an exempt telecommunications
company as that term is defined in Section 34(a)(1) of PUHCA, as amended.

     6.   Accordingly, IT IS ORDERED that the application of CSW Communications for
status as an exempt telecommunications company IS GRANTED.  IT IS FURTHER ORDERED
that the Secretary notify the Securities and Exchange Commission of this determination.  

     7.   IT IS FURTHER ORDERED that the General Counsel is delegated authority to
act upon applications for a determination of exempt telecommunications company status.  The
Managing Director is delegated authority promptly to make conforming rule changes.  


                         FEDERAL COMMUNICATIONS COMMISSION



                         William F. Caton
                         Acting Secretary