NEWSReport No. GN 96-5        GENERAL ACTION                  April 4, 1996

            COMMISSION GRANTS FIRST TELECOM ACT APPLICATION 
             FOR UTILITY COMPANY TO ENTER TELECOMMUNICATIONS

     Less than two months after enactment of the Telecommunications Act of 1996, the
Commission today announced that it has granted the first application under the Act to allow a
public utility holding company to enter telecommunications markets.   The Commission
granted the application of CSW Communications, Inc. for status as an "exempt
telecommunications company" (ETC).

     In granting the application, the Commission recognized that utility companies have the
potential to be significant new competitors in telecommunications markets, and that such
entry can result in lower prices and greater choice for consumers.  Prior to enactment of the
new legislation, it was difficult for registered holding companies to enter telecommunications
markets.  By acquiring or maintaining an interest in an ETC, registered holding companies
can now enter telecommunication markets without the approvals historically required under
the Public Utility Holding Company Act of 1935 (PUHCA).  The new law vests the
Commission with jurisdiction to determine whether a company warrants ETC status based on
enumerated statutory criteria.

     According to the application, CSW intends to construct a fiber optic system that will
be used to provide utility communications services and demand-side management services,
and will lease reserve capacity to unaffiliated entities for the provision of communications
services.  In addition, CSW indicated that it intends to provide to its customers and others an
energy management service that relies on advanced communications systems.

     CSW was the first company to file an application under Section 34(a)(1) of PUHCA,
as added by the Telecommunications Act of 1996.  CSW is a subsidiary of Central and South
West Corporation, a registered public utility holding company under PUHCA.

     Action by the Commission April 3, 1996, by Order (FCC 96-152).  Chairman Hundt,
Commissioners Quello, Ness, and Chong. 
    
                                    
                                  -FCC-

     News Media contact:  Audrey Spivack at (202) 418-0500
     Office of General Counsel, Competition Division contacts:  James W. Olson or
          Lawrence Spiwak at 202-418-1880