You may certainly generate under the CA Telon 5.1 PWS. This will create the COBOL source code for you.
You then have two choices, but both do involve the CA Telon release 5.1 on the mainframe:
1. You may then export your source and bring it to the mainframe, where it will be generated again and compiled. You will need to ensure that your macros on the pc are in sync with the macros on your mainframe.
2. You may generate on the pc and bring your cobol program to the mainframe, where it will be compiled and executed.
Compilation and execution are done on the mainframe.
The CA Telon 5.1 PWS is used mainly to design in the TDF as well as generate there if you would like.