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 January 1, 1997 to
March 31, 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 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 March 31, 1997. See Exhibit C.
(2) Balance sheet for period ended March 31, 1997. See Exhibit D.
(3) Statement of cash flow for the period ended March 31, 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 15th day of May 1997.
EnerShop, Inc.
/s/ Kenneth C. Raney, Jr.
Secretary
EXHIBIT A
EnerShop Energy Services and Demand-Side Management Activities
For Period Ended Calendar Quarter March, 1997
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 quarter ended December 1996
through the quarter ended March 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 March 31, 1997
Name Type of Service Amount
- ------------------------------------ -------------------------- ----------
Central and South West Services, Inc. Salaries, and overheads in $77,635
(Wholly owned subsidiary of support of EnerShop, Inc.
Central and South West Corporation)
EXHIBIT C
EnerShop, Inc.
Income Statement
For The Quarter Ended March 31, 1997
Contract Revenue $300,557
Professional Service Revenue 3,333
Financing Fee Revenue --
Other Revenue 3,381
---------
Total Revenue 307,271
Cost of Revenue 268,238
---------
Gross Profit 39,033
Salaries and Employee Benefits 371,309
Marketing and General 46,480
Outside Services - CSWS 99,104
Consulting and Legal Fees 139,536
Travel and Entertainment 34,591
Administrative and General 48,624
Depreciation 4,680
---------
Total Expenses 744,324
Interest Expense 32,923
Federal Income Taxes (258,375)
---------
Net Income / (Loss) $(479,839)
=========
EXHIBIT D
EnerShop, Inc.
Balance Sheet
As of March 31, 1997
ASSETS
Current Assets
Accounts Receivable $324,405
Prepaid Warranty Costs 22,429
Federal Income Tax Benefit 252,662
Work In Progress 109,041
Other 18,972
-----------
Total Current Assets 727,509
Office Furniture & Equipment 111,079
Accumulated Depreciation (15,600)
-----------
Net Furniture & Equipment 95,479
Prepaid Benefit Plan Costs 26,218
-----------
Total Assets $849,206
===========
LIABILITIES & EQUITY
Current Liabilities
Accounts Payable - Trade $246,628
Accounts Payable - Affiliated Company 2,696,429
-----------
Total Current Liabilities 2,943,057
-----------
Total Liabilities 2,943,057
-----------
EQUITY
Common Stock 100
Additional Paid In Capital 900
Retained Earnings (2,094,851)
-----------
Total Equity (2,093,851)
-----------
TOTAL LIABILITIES & EQUITY $849,206
===========
EXHIBIT E
EnerShop, Inc.
Statement of Cash Flows
For The Period Ended March 31, 1997
OPERATING ACTIVITIES
Net (Income) Loss $(479,839)
Change in Trade Accounts Receivable (126,438)
Change in Work in Progress 29,376
Change in Fixed Assets 93
Change in Accumulated Depreciation 4,680
Change in Other Assets (15,790)
Change in Trade Accounts Payable 33,655
Change in Affiliated Accounts Payable 102,225
Change in Accrued Benefit Plan Liabilities 750
Change in Other Liabilities 6,667
Change in Accrued Federal Income Tax 107,048
---------
Total Operating Activities (337,573)
FINANCING ACTIVITIES
Change in Short Term Debt 337,573
---------
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 March 31, 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 March 31, 1997
Hours
Associated Company RENDERED
CSW Services, Inc. 918
(Wholly owned subsidiary of CSW)
