<PAGE> 1
November 15, 1996
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington D.C. 20549
Interim Report Under Rule 24 of the
Public Utility Holding Company Act of 1935
Columbia Energy Services Corporation
12355 Sunrise Valley Drive
Suite 300
Reston, VA 20191-3420
File No. 70-8775
Ladies and Gentlemen:
In compliance with the terms and conditions of Rule 24 under the
Public Utility Holding Company Act of 1935, and the order of the Commission
dated March 25, 1996, authorizing the financing transactions and business
activities as more fully described in the Joint Application/Declaration, as
amended (the "Application"), the undersigned hereby certifies to the Commission
that:
1) For the period July 1, 1996, through September 30, 1996, Consumer
Service Partners, Inc. ("Partners") sold and Columbia Energy
Services purchased, 50 shares of Common Stock ($25 par value) for
$500,000.
For the cumulative period ended September 30, 1996, Consumer Service
Partners, Inc. ("Partners") sold and Columbia Energy Services ("CES")
purchased, 100 shares of Common Stock ($25 par value) for $1,000,000.
2) For the period July 1, 1996, through September 30, 1996, and
cumulatively through September 30, 1996, Partners recorded $3,997.00
in revenues. The percentage of revenues attributable to each type of
service provided by Partners, and the amount of revenues derived from
customers residing in the states in which the Columbia Gas
Distribution Companies operate in relation to Partners total revenues
are illustrated below.
<TABLE>
<CAPTION>
3rd Quarter Cumulative
----------- ----------
Sales by Activity
----------------------------------
<S> <C> <C> <C> <C>
Payment Partner - Kentucky $415 10% $415 10%
Payment Partner - Ohio $662 17% $662 17%
Appliance Partner - Ohio $713 18% $713 18%
Gas Line Warranty - Ohio $2,206 55% $2,206 55%
------ ----- ------ -----
Gross Sales $3,996 100% $3,996 100%
</TABLE>
<PAGE> 2
<TABLE>
<CAPTION>
3rd Quarter Cumulative
----------- ----------
Sales by State
------------------------------------
<S> <C> <C> <C> <C>
Kentucky $415 10% $415 10%
Ohio $3,581 90% $3,581 17%
------ ----- ------ -----
Total $3,996 100% $3,996 100%
</TABLE>
3) For the period July 1, 1996, through September 30, 1996, and
cumulatively through September 30, 1996, Columbia LDC's provided services
to Partners which Partners in turn reimbursed Columbia LDC's.
Illustrated below by individual Columbia LDC are the services that were
provided and the applicable cost for each type.
Statement of Services Provided by Columbia LDC's
<TABLE>
<CAPTION>
3rd Quarter Cummulative
----------- -----------
<S> <C> <C> <C> <C>
Columbia Kentucky - Labor $658 8% $658 8%
Columbia Ohio - Labor $7,340 92% $7,340 92%
------ ----- ------ -----
Total $7,998 100% $7,998 100%
</TABLE>
Statement of Services Paid for and Provided by Columbia LDC's
<TABLE>
<CAPTION>
3rd Quarter Cumulative
--------------- ----------------
<S> <C> <C> <C> <C>
Columbia Kentucky - Labor * $0 0% $0 0%
Columbia Ohio - Labor $7,340 92% $7,340 92%
------ ----- ------ -----
Total $7,340 100% $7,340 100%
</TABLE>
* Timing only. Columbia Kentucky was reimbursed in the fourth quarter which is
outside the time period applicable to this filing.
4) Partners entered into Affiliated Interest Agreements (attached as
Exhibit A and Exhibit B) with certain of Columbia's Local Distribution
Companies ("LDC's").
Very Truly yours,
COLUMBIA ENERGY SERVICES CORPORATION
By: //s//J. W. Trost
---------------------------------
J. W. Trost, Vice President
<PAGE> 3
EXHIBIT A
Commonwealth of Pennsylvania
Pennsylvania Public Utility Commission
P.O. Box 3265, Harrisburg, PA 17105-3265
Affiliated Interest Agreement between
Columbia Gas of Pennsylvania, Inc., Columbia Gas of Maryland, Inc., Columbia
Gas of Ohio, Inc., Columbia Service Partners, Inc., and Columbia Energy
Services, Inc.
AGREEMENT AMONG
AFFILIATED INTERESTS
This AGREEMENT, dated as of the 26th day of April, 1996, is by
and among the following:
Columbia Gas of Pennsylvania, Inc.
Columbia Gas of Maryland, Inc.
Columbia Gas of Ohio, Inc.
Columbia Service Partners, Inc.
WHEREAS, the foregoing companies are wholly-owned subsidiaries
of The Columbia Gas System, Inc. ("Columbia"), and therefore affiliates; and
WHEREAS, Columbia has received an order from the Securities
and Exchange Commission ("Order") authorizing formation of a nonutility
subsidiary to provide energy-related consumer services of a nature described
herein and in the attached Order, and
WHEREAS, Columbia has incorporated Columbia Service Partners,
Inc. ("Partners") to engage in the business of providing such energy-related
consumer services; and
WHEREAS, Partners will require from the foregoing companies
services described herein and in the attached Order;
NOW THEREFORE, in consideration of the mutual covenants
contained herein, the parties hereto agree as follows:
<PAGE> 4
ARTICLE I
SERVICES AND SUPPLIES TO
BE FURNISHED BY OR ON
BEHALF OF AFFILIATES
Any of the affiliated companies may from time to time provide Partners
with customer billing, accounting, and other energy-related services for
consumer services offered to end-user customers. Such consumer services may
include safety inspections, appliance financing, billing insurance, appliance
repair warranty, gas line repair warranty, merchandising of energy-related
goods, commercial equipment service, bill risk management products, consulting
and fuel management services, electronic measurement services and incidental
services as described in the attached Order.
ARTICLE II
PAYMENT OF CHARGES
All services between the foregoing companies and Partners, or between
Partners and any other Columbia company, required to conduct the new consumer
services will be billed at cost, in accordance with Section 13(b) of the Public
Utility Holding Company Act of 1935 and rules thereunder.
ARTICLE III
BILLING PRACTICES
As soon as practical after the last day of each month, or such other
period as may be agreed upon by the respective companies, a billing shall be
rendered for all amounts due for services and expenses for such period,
computed pursuant to this Agreement. These bills shall be in sufficient detail
to show separately the charge for each class of service rendered. All amounts
so billed shall be paid within a reasonable time after receipt. The companies
shall keep their books and records
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available at all times for inspection by representatives of the other
companies or by regulatory bodies having jurisdiction over them, and upon
request, shall furnish any and all information required with respect to
the services rendered, the costs thereof and the allocation of such costs among
all companies party to this Agreement.
This Agreement shall be in full force and effect as of the date first
mentioned above, and shall continue until terminated by any of the parties
hereto giving the others sixty days written notice of termination; provided,
however, this Agreement shall be subject to termination or modification at any
time to the extent necessary to comply with the provisions of the Public
Utility Holding Company Act of 1935, as amended, or any rule, regulation or
order of the Securities and Exchange Commission; provided further that this
Agreement shall be subject to the approval of any state or federal regulatory
body or agency, the approval of which is a legal prerequisite to the execution,
acceptance or performance of this Agreement. This Agreement shall terminate
immediately with regard to any party as of the date such company ceases to be
an affiliate of all of the other parties to this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first written above.
WITNESS: COLUMBIA GAS OF PENNSYLVANIA, INC.
//s//S. J. Sagun //s//Gary J. Robinson
- ----------------------- ------------------------------------
Gary J. Robinson
President
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WITNESS: COLUMBIA GAS OF MARYLAND, INC.
//s//S. J. Sagun //s//Gary J. Robinson
- ----------------------- -----------------------------------
Gary J. Robinson
President
WITNESS: COLUMBIA GAS OF OHIO, INC.
//s//Norma LeMaster //s//Robert C. Skaggs, Jr
- ----------------------- -----------------------------------
Robert C. Skaggs, Jr.
President
WITNESS: COLUMBIA SERVICE PARTNERS, INC.
//s//W. R. Barnes //s//Jeffrey A. Meyers
- ----------------------- -----------------------------------
Jeffrey A. Meyers
Vice President
<PAGE> 7
EXHIBIT B
PENNSYLVANIA
PUBLIC UTILITY COMMISSION
HARRISBURG, PA 17105-3265
Public Meeting held September 5, 1996
Commissioners Present:
John M. Quain, Chairman
Lisa Crutchfield, Vice Chairman
John Hanger
David W. Rolka
Robert K. Bloom
Affiliated Interest Agreement Between
Columbia Gas of Pennsylvania, Inc.
Columbia Gas of Maryland, Inc., Columbia
Gas of Ohio, Inc., Columbia Service Partners,
Inc., and Columbia Energy Services, Inc.
G-00960483
OPINION AND ORDER
BY THE COMMISSION:
On August 7, 1996, Columbia Gas of Pennsylvania, Inc. ("Columbia")
filed an agreement to the Affiliated Interest Agreement with Columbia Gas of
Maryland, Inc., Columbia Gas of Ohio, Inc. And Columbia Service Partners, Inc.
The original affiliated interest agreement was approved by Order of this
Commission on July 18, 1996, at the same Docket No. (G-00960483). The
amendment contemplates Columbia providing accounting, operating,
administrative, billing and other related services to Columbia Energy Services,
Inc. ("Services"), the parent company of Columbia Service Partners, Inc. This
filing is to become effective on September 7, 1996. Upon review of the
agreement, the Commission has found need for additional information.
Section 2102 (b) of the Public Utility Code, 66 Pa. C.S. Section 2102
(b), provides that the agreement shall be deemed approved if a written order is
not entered at the end of thirty days after filing of this agreement, unless
the Commission extends the thirty day period. In order to adequately review
the agreement, it is necessary that we extend the consideration period for an
additional sixty-nine days, or to November 15, 1996; THEREFORE,
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IT IS ORDERED:
That the period for consideration of the amendment to the
Affiliated Interest Agreement between Columbia Gas of Pennsylvania, Inc.,
Columbia Gas of Maryland, Inc., Columbia Gas of Ohio, Inc., and Columbia
Service Partners, Inc., filed August 7, 1996, to become effective September 7,
1996, is hereby extended for an additional sixty-nine days, or to November 15,
1996.
BY THE COMMISSION,
//s//John G. Alford
Secretary
(SEAL)
ORDER ADOPTED: September 5, 1996
ORDER EXTENDED: September 5, 1996
