Item 8.01. Other Events

On June 24, 2009, the Arkansas Court of Appeals reversed the Arkansas Public Service Commission's (APSC's) November 2007 grant of a Certificate of Environmental Compatibility and Public Need (CECPN) for the Turk plant being constructed by Southwestern Electric Power Company (SWEPCO). The Court concluded that SWEPCO's need for baseload capacity, the construction and financing of the generating plant, and the proposed transmission line construction and location should all have been considered by the APSC in one docket instead of separate dockets.

Management disagrees with the Court's conclusions and believes that the process followed by the APSC was consistent with the governing statutes and decades of past practice in Arkansas. On June 29, 2009, SWEPCO appealed this decision to the Arkansas Supreme Court. While the appeal is pending, SWEPCO intends to continue constructing the Turk plant.

As of May 31, 2009, $731 million had been spent on the Turk Plant, of which SWEPCO paid $555 million, with the remainder paid by the other owners of the Turk Plant.

Please see discussions of the Turk Plant on page 39 of the Annual Report on Form 10-K for the year ended December 31, 2008 and beginning on pages A-17 and A-53 of the Quarterly Report on Form 10-Q for the period ended March 31, 2009.

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