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 October 1, 1996 to
December 31, 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) Narative report of activities undertaken in connection with energy and
demand side management services. See Exhibit A.
(2) Description of any services received by EnerShop from CSW Services, Inc.
and each of the electric utility company subsidiaries of CSW aggregate
dollar value of the services by company.
See Exhibit B.
(B)
(1) Statement of Income for quarter ended December 31, 1996. See Exhibit C.
(2) Balance sheet for period ended December 31, 1996. See Exhibit D.
(3) Statement of cash flow for the period ended December 31, 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 associate companies on services rendered to
EnerShop. See Exhibit G.
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 13th day of February 1997.
EnerShop, Inc.
/s/ KENNETH C. RANEY, JR.
Kenneth C. Raney, Jr.
Secretary
EXHIBIT A
EnerShop Energy Services and Demand-Side Management Activities
Calendar Year 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 the quarter ended September,
1996 through the quarter ended December, 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 complete and final acceptance has
been received.
2. Dallas Independent School District Upgrade (Dallas County Texas )
EnerShop joined this project as a sub-contractor to Con-Real, Inc., to
provide project management support and installation of the mechanical
equipment portion of this project. The project is scheduled for completion
in the first quarter of 1997.
3. 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
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 December 31, 1996
Name Type of Service Amount
- ------------------------------------- -------------------------- -------------
Central and South West Services, Inc. Salaries, and overheads in $ 384,256
(Wholly owned subsidiary of support of EnerShop, Inc.
Central and South West Corporation)
Transok, Inc. Rent and administrative 12,891
support for Houston, TX
office.
CSW Energy, Inc. Salaries, and overheads in 18,609
(Wholly owned subsidiary of support of EnerShop, Inc.
Central and South West Corporation)
EXHIBIT C
EnerShop, Inc.
Income Statement
For The Quarter Ended December 31, 1996
Contract Revenue $899,479
Professional Service Revenue 10,000
Financing Fee Revenue 12,600
Other Revenue 5,300
-----------
Total Revenue 927,379
Cost of Revenue 714,699
-----------
Gross Profit 212,680
Salaries and Employee Benefits 885,905
Marketing and General 529,700
Outside Services - CSWS 175,552
Consulting and Legal Fees 420,475
Travel and Entertainment 111,547
Administrative and General 408,923
Depreciation 12,514
-----------
Total Expenses 2,544,616
Interest Expense 78,875
Federal Income Taxes (903,529)
-----------
Net Income $(1,507,282)
===========
EXHIBIT D
EnerShop, Inc.
Balance Sheet
December 31, 1996
ASSETS
Current Assets
Accounts Receivable $197,967
Prepaid Warranty Costs 22,327
Federal Income Tax Benefit 359,711
Work In Progress 138,417
Other 63,315
-----------
Total Current Assets 781,737
Office Furniture & Equipment 111,172
Accumulated Depreciation (10,920)
-----------
Net Furniture & Equipment 100,252
Prepaid Benefit Plan Costs 26,969
===========
Total Assets $908,958
===========
LIABILITIES & EQUITY
Current Liabilities
Accounts Payable - Trade $103,285
Accounts Payable - Affiliated Company 79,173
-----------
Total Current Liabilities 182,458
Long Term Liabilities
Notes Payable - CSWC 2,340,512
-----------
Total Long Term Liabilities 2,340,512
-----------
Total Liabilities 2,522,970
EQUITY
Common Stock 100
Additional Paid In Capital 900
Retained Earnings (1,615,012)
-----------
Total Equity (1,614,012)
-----------
TOTAL LIABILITIES & EQUITY $908,958
===========
EXHIBIT E
EnerShop, Inc.
Statement of Cash Flows
For The Quarter Ended December 31, 1996
OPERATING ACTIVITIES
Net (Income) Loss $1,507,282
Change in Trade Acounts Receivable 183,317
Change in Work in Progress 138,417
Change in Fixed Assets 111,172
Change in Office Furniture and Fixtures (10,920)
Change in Other Assets (145,091)
Change in Trade Acounts Payable (92,213)
Change in Affiliated Acounts Payable 103,513
Change in Accrued Benefit Plan Liabilities 26,968
Change in Accrued Federal Income Tax 324,161
-----------
Total Operating Activities 2,146,606
FINANCING ACTIVITIES
Change in Short Term Debt (2,146,606)
-----------
Total Financing Activities --
===========
Net Change in Cash & Cash Equivalents --
===========
Cash at Beginning of Period --
Cash at End of Period --
===========
Net Change in Cash & Cash Equivalents $ --
===========
EXHIBIT F
EnerShop, Inc.
Schedule of CSW Guarantees
At December 31, 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.
EXHIBIT G
EnerShop, Inc.
Schedule of Hours Spent in Support of EnerShop
At December 31, 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)
