UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
- ----------------------------------------------
In the matter of
EnerShop Inc. REPORT FOR PERIOD
Dallas, Texas 75266 April 1, 1996 to
June 30, 1996
File No. 070-08645 PURSUANT TO RULE 24
This report is filed under Rule 24 of the Public Utility Holding Company
Act of 1935 by EnerShop, Inc. ("EnerShop"), a wholly owned subsidiary of Central
and South West Corporation ("CSW"). Under HCAR 35-26367, EnerShop is authorized
to provide energy and demand side management services to nonassociates; loans to
subsidiary; guarantees of subsidiary's obligations; and customer financing by
subsidiary. Attached is the information required pursuant to HCAR 35-26367.
(A)
(1) A narrative report of activities undertaken in connection with energy
and demand side management services. See Exhibit A.
(2) Description of any services received to EnerShop by Central and South
West Services, Inc. and each of the electric utility company
subsidiaries of CSW and the aggregate dollar value of the services by
company. See Exhibit B.
(B)
(1) Statement of Income for quarter ended June 30, 1996. See Exhibit C.
(2) Balance Sheet for the period ended June 30, 1996. See Exhibit D.
(3) Statement of Cash Flows for the period ended June 30, 1996. See
Exhibit E.
(4) Amounts and forms of currently effective CSW guarantees of and similar
arrangements concerning the performance and undertaking of obligations
by EnerShop. See Exhibit F.
(5) Measure of hours spent by associated companies on services rendered to
EnerShop. See Exhibit G.
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S I G N A T U R E
As requested by order of this Commission pursuant to the Public Utility
Holding Company Act of 1935, EnerShop, Inc. has duly caused this report to be
signed on its behalf on this 15th day of August, 1996.
EnerShop, Inc.
/s/ KENNETH C. RANEY, JR.
Kenneth C. Raney, Jr.
Secretary
EXHIBIT A
EnerShop Energy Services and Demand-Side Management Activities
For Period Ended Calendar Quarter June, 1996
EnerShop is an energy services company, providing cost-effective energy
management solutions and strategies for commercial and industrial customers,
both inside and outside the service territories of the CSW electric operating
companies. EnerShop's turn-key energy efficiency and demand-side management
solutions include engineering, design specification, equipment installation,
project management and financing placement. EnerShop analyzes potential
customer's operations and identifies equipment, usage, and other changes that
will lower their overall energy bills or provide greater productivity. On most
projects EnerShop manages the efforts of several parties, including equipment
vendors, engineering firms, and subcontractors. This management allows our
customers to look to a sole-source conduit for activities that would otherwise
detract from their time and resources.
The following represents EnerShop's activities from end of the quarter ended
March, 1996 through June, 1996:
1. Matagorda County Energy Efficiency Project (Matagorda County Texas - CPL
service territory) - EnerShop won a competitive public bid to provide energy
efficiency retrofits for four County facilities. The services to be provided
include: lighting system retrofit, chiller and cooling tower replacement,
installation of an energy management system, and annual preventative
maintenance. The project is currently under construction and the County is
expected to save over 50% of their current utility costs.
2. Provisional Studies - EnerShop performed energy audits or developed energy
efficiency proposals for a number of commercial customers. These studies or
proposals typically consisted of a facility energy and operational audit,
estimates of energy and operational saving opportunities, and associated
equipment costs.
EnerShop expects to provide detailed engineering studies and subsequent energy
and demand-side management projects for a number of these and other customers in
1996. EnerShop's primary focus today is the commercial business sector in
Dallas, Texas, Houston, Texas, and the service territories of the four CSW
operating companies.
Enershop, Inc.
Intercompany Service Transactions
For the Quarter Ended June 30, 1996
Name Type of Service Amount
- -------------------------------- -------------------------- ---------------
Central and South West Services, Salaries, and overheads in $371,494
Inc. (Wholly owned subsidiary of support of Enershop, Inc.
Central and South West
Corporation)
Transok, Inc. Rent and administrative 12,891
(Wholly owned subsidiary of support for Houston, TX
Central and South West office.
Corporation)
CSW Energy, Inc. Salaries, and overheads in 18,609
(Wholly owned subsidiary of support of Enershop, Inc.
Central and South West
Corporation)
ENERSHOP, INC.
Income Statement
For The Quarter Ended June 30, 1996
Revenue
Financing Fee Revenue $12,600
Professional Service Revenue 10,000
-----------
Total Revenue 22,600
Selling & Administrative Expenses
Salaries and Employee Benefits 361,463
Marketing and General 322,116
Outside Services - CSWS 143,195
Consulting and Legal Fees 148,894
Travel and Entertainment 44,145
Administrative and General 140,267
-----------
Total Expenses 1,160,080
Interest Expense 24,115
Federal Income Taxes (406,558)
-----------
Net Income $(755,037)
===========
ENERSHOP, INC.
Balance Sheet
June 30, 1996
ASSETS
Current Assets
Accounts Receivable $10,000
Contract Cost in Excess of Billings 84,611
Prepaid Warranty Costs 23,922
Federal Income Tax Benefit 406,559
Office Furniture and Fixtures 68,610
Other 1,342
===========
TOTAL ASSETS 595,044
===========
LIABILITIES & EQUITY
Current Liabilities
Accounts Payable - Trade 56,757
Accounts Payable - Affiliated 31,912
Long Term Liabilities
Notes Payable - CSWC 1,367,142
-----------
Total Liabilities 1,455,811
EQUITY
Common Stock 100
Additional Paid In Capital 900
Retained Earnings (862,767)
-----------
Total Equity (861,767)
-----------
TOTAL LIABILITIES & EQUITY $594,044
===========
ENERSHOP, INC.
Statement of Cash Flows
For The Quarter Ended June 30, 1996
OPERATING ACTIVITIES
Net (Income) Loss $755,037
Change in Trade Acounts Receivable 10,000
Change in Work in Progress 69,961
Change in Other Assets (145,437)
Change in Office Furniture and Fixtures 68,610
Change in Trade Acounts Payable 82,394
Change in Affiliated Acounts Payable (48,410)
Change in Accrued Federal Income Tax 371,009
-----------
Total Operating Activities 1,163,164
FINANCING ACTIVITIES
Change in Short Term Debt (1,163,164)
-----------
Total Financing Activities (1,163,164)
===========
Net Change in Cash & Cash Equivalents --
===========
Cash at Beginning of Period --
Cash at End of Period --
===========
Net Change in Cash & Cash Equivalents $ --
===========
ENERSHOP, INC.
Schedule of CSW Guarantees
At June 30, 1996
CSW will guarantee or act as surety on bonds, indebtedness and performance and
other obligations undertaken by EnerShop in connection with the Matagorda County
Project which involves Signet Bank's $504,000 lease.
ENERSHOP, INC.
Schedule of Hours Spent in Support of Enershop
At June 30, 1996
Hours
Associated Company Rendered
CSW Services, Inc. 3,715
(Wholly owned subsidiary of CSW)
CSW Energy, Inc. 250
(Wholly owned subsidiary of
Central and South West Corporation)
