EXHIBIT 35.1

SERVICER COMPLIANCE STATEMENT

I, Lonni L. Dieck, certify that:

(a) A review of AEP Texas Inc.’s (the “Servicer”) activities during the reporting period covered by this Report on Form 10-K and of its performance under that certain Transition Property Servicing Agreement dated as of March 14, 2012 between AEP Texas Central Transition Funding III LLC, as the Issuing Entity, and the Servicer (the "Servicing Agreement") has been made under my supervision.

(b) To the best of my knowledge, based on such review, the Servicer has fulfilled all of its obligations under the Servicing Agreement in all material respects throughout the reporting period.

Date: March 23, 2018

/s/ Lonni L. Dieck

Name: Lonni L. Dieck

Title: Treasurer and Senior Officer in Charge of

the Servicing Function, AEP Texas Inc., as Servicer