<TABLE> <S> <C>

<ARTICLE>  UT
<CIK>  0000092487
<NAME>  SOUTHWESTERN ELECTRIC POWER COMPANY
<SUBSIDIARY>
<NUMBER> 003
<NAME> SOUTHWESTERN ELECTRIC POWER COMPANY
<MULTIPLIER> 1,000
       
<S>                                                 <C>
<PERIOD-TYPE>                                       12-MOS
<FISCAL-YEAR-END>                                                  DEC-31-1998
<PERIOD-END>                                                       DEC-31-1998
<BOOK-VALUE>                                                          PER-BOOK
<TOTAL-NET-UTILITY-PLANT>                                            1,840,854
<OTHER-PROPERTY-AND-INVEST>                                              5,954
<TOTAL-CURRENT-ASSETS>                                                 131,767
<TOTAL-DEFERRED-CHARGES>                                                17,373
<OTHER-ASSETS>                                                          53,572
<TOTAL-ASSETS>                                                       2,049,520
<COMMON>                                                               135,660
<CAPITAL-SURPLUS-PAID-IN>                                              245,000
<RETAINED-EARNINGS>                                                    300,592
<TOTAL-COMMON-STOCKHOLDERS-EQ>                                         681,252
<PREFERRED-MANDATORY>                                                        0
<PREFERRED>                                                              4,707
<LONG-TERM-DEBT-NET>                                                   614,727
<SHORT-TERM-NOTES>                                                      40,705
<LONG-TERM-NOTES-PAYABLE>                                                    0
<COMMERCIAL-PAPER-OBLIGATIONS>                                               0
<LONG-TERM-DEBT-CURRENT-PORT>                                           40,595
<PREFERRED-STOCK-CURRENT>                                                    0
<CAPITAL-LEASE-OBLIGATIONS>                                              2,212
<LEASES-CURRENT>                                                         3,337
<OTHER-ITEMS-CAPITAL-AND-LIAB>                                         661,985
<TOT-CAPITALIZATION-AND-LIAB>                                        2,049,520
<GROSS-OPERATING-REVENUE>                                              952,952
<INCOME-TAX-EXPENSE>                                                    47,982
<OTHER-OPERATING-EXPENSES>                                             754,183
<TOTAL-OPERATING-EXPENSES>                                             802,165
<OPERATING-INCOME-LOSS>                                                150,787
<OTHER-INCOME-NET>                                                       2,451
<INCOME-BEFORE-INTEREST-EXPEN>                                         153,238
<TOTAL-INTEREST-EXPENSE>                                                55,135
<NET-INCOME>                                                            98,103
<PREFERRED-STOCK-DIVIDENDS>                                                705
<EARNINGS-AVAILABLE-FOR-COMM>                                           96,542
<COMMON-STOCK-DIVIDENDS>                                               120,000
<TOTAL-INTEREST-ON-BONDS>                                               39,233
<CASH-FLOW-OPERATIONS>                                                 226,463
<EPS-PRIMARY>                                                             0.00
<EPS-DILUTED>                                                             0.00
        

</TABLE>