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 July 1, 1997 to
September 30, 1997
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) Narrative report of activities undertaken in connection with energy and
demand side management services. See Exhibit A.
(2) Description and aggregate dollar value of any services received by
EnerShop from Central and South West Services, Inc. and each of the
electric utility subsidiary companies of CSW, by company. See Exhibit B.
(B)
(1) Statement of Income for quarter ended September 30, 1997. See Exhibit C.
(2) Balance sheet for period ended September 30, 1997. See Exhibit D.
(3) Statement of cash flow for the period ended September 30, 1997. 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 associate 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 14th day of November 1997.
EnerShop, Inc.
/s/ Kenneth C. Raney, Jr.
Secretary
EXHIBIT A
EnerShop, Inc. Energy Services and Demand-Side Management Activities
For Period Ended Calendar Quarter September, 1997
EnerShop, Inc. 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 for the quarter ended September
1997:
1. Provisional Studies and Final Contract Proposals - EnerShop performed energy
audits and/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 has signed a Letter of Intent with
several of these customers and is presently negotiating Implementation
Contracts.
EnerShop expects to provide detailed engineering studies and subsequent energy
and demand-side management projects for a number of these and other customers in
1997. EnerShop's primary focus today is the commercial business sector in Dallas
and Houston, Texas, and the service territories of the four CSW operating
companies.
EXHIBIT B
EnerShop, Inc.
Intercompany Service Transactions
For the Quarter Ended September 30, 1997
Name Type of Service Amount
- --------------------------- ----------------------- ---------
Central and South West Salaries, and overheads $ 152,565
Services, Inc. (direct and indirect)
(Wholly owned subsidiary of in support of EnerShop
Central and South West
Corporation)
EXHIBIT C
EnerShop, Inc.
Income Statement
For The Quarter Ended September 30, 1997
Unaudited
(000's)
Contract Revenue $309
Professional Service Revenue 5
Other Revenue 1
-------
Total Revenue 315
Cost of Revenue 280
-------
Gross Profit 35
Salaries and Employee Benefits 502
Marketing and General 40
Outside Services - CSWS 62
Consulting and Legal Fees 351
Travel and Entertainment 78
Administrative and General 119
Depreciation 5
-------
Total Expenses 1,157
Interest Expense 64
Federal Income Taxes (416)
-------
Net Income / (Loss) $(772)
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EXHIBIT D
EnerShop, Inc.
Balance Sheet
At September 30, 1997
Unaudited
(000's)
ASSETS
- ------------------------------------------
Current Assets:
Accounts Receivable - Trade $255
Income Tax Receivable 363
Prepaid Assets 19
-------
Total Current Assets 637
-------
Work In Progress 510
Plant, Property & Equipment:
Furniture & Fixtures 125
Accumulated Depreciation / Amortization (25)
-------
Net Plant, Property & Equipment 100
-------
Other Assets:
Prepaid Benefits 64
Other Non-Current Assets 333
-------
Total Other Assets: 397
-------
TOTAL ASSETS $1,644
=======
LIABILITIES & EQUITY
- ------------------------------------------
Current Liabilities:
Accounts Payable - CSW $46
Accounts Payable - Trade 113
Accrued Payroll & Benefits 347
Accrued Interest - CSW 21
-------
Total Current Liabilities 527
-------
Note Payable - Affiliated 4,406
Other Deferred Credits 93
Equity:
Common Stock and Additional Paid In Capital 1
Retained Earnings (3,383)
-------
Total Equity (3,382)
-------
TOTAL LIABILITIES & EQUITY $1,644
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EXHIBIT E
EnerShop, Inc.
Statement of Cash Flows
For The Quarter Ended September 30, 1997
Unaudited
(000's)
OPERATING ACTIVITIES
Net Income (Loss) $(772)
Depreciation 5
Change in Assets and Liabilities:
Change in Nonaffiliated Accounts Receivable 416
Change in Nonaffiliated Accounts Payable (44)
Change in Affiliated Accounts Payable 20
Change in Accrued Taxes 103
Change in Other 275
-----
TOTAL OPERATING ACTIVITIES 3
INVESTING ACTIVITIES
Construction Expenditures (456)
Note Receivable Increase / (Decrease) --
Other Investing Activities (323)
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TOTAL INVESTING ACTIVITIES (779)
FINANCING ACTIVITIES
Capital Contributions --
Change in Short Term Debt 775
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TOTAL FINANCING ACTIVITIES --
-----
NET CHANGE IN CASH AND CASH EQUIVALENTS --
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EXHIBIT F
EnerShop, Inc.
Schedule of CSW Guarantees
At September 30, 1997
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.
EXHIBIT G
EnerShop, Inc.
Schedule of Hours Spent in Support of EnerShop
At September 30, 1997
Hours
Associated Company RENDERED
Central and South West 730
Services, Inc.
(Wholly owned subsidiary of CSW)
