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File Number 70-7258
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Post Effective Amendment No. 4
to
FORM U-1
APPLICATION-DECLARATION UNDER THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
By
CONSOLIDATED NATURAL GAS COMPANY
CNG Tower
Pittsburgh, Pennsylvania 15222-3199
(a registered holding company and
the parent of the other parties)
CNG COAL COMPANY CONSOLIDATED SYSTEM LNG COMPANY
CNG ENERGY COMPANY HOPE GAS, INC.
CNG IROQUOIS, INC. THE EAST OHIO GAS COMPANY
CNG PRODUCING COMPANY THE PEOPLES NATURAL GAS COMPANY
CNG RESEARCH COMPANY THE RIVER GAS COMPANY
CNG STORAGE SERVICE COMPANY WEST OHIO GAS COMPANY
CNG TRANSMISSION CORPORAITON CNG PIPELINE COMPANY
CONSOLIDATED NATURAL GAS CNG GAS SERVICES CORPORATION
SERVICE COMPANY, INC. VIRGINIA NATURAL GAS, INC.
Names and addresses of agents for service:
S. E. WILLIAMS, Senior Vice President
and General Counsel
Consolidated Natural Gas Company
CNG Tower
625 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3199
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File Number 70-7258
H. P. PAYNE, JR., Senior Attorney
CONSOLIDATED NATURAL GAS SERVICE COMPANY, INC.
CNG COAL COMPANY
CNG ENERGY COMPANY
CNG PRODUCING COMPANY
CNG RESEARCH COMPANY
CNG STORAGE SERVICE COMPANY
CNG TRANSMISSION CORPORATION
CONSOLIDATED SYSTEM LNG COMPANY
HOPE GAS, INC.
THE EAST OHIO GAS COMPANY
THE PEOPLES NATURAL GAS COMPANY
THE RIVER GAS COMPANY
WEST OHIO GAS COMPANY
CNG PIPELINE COMPANY
CNG GAS SERVICES CORPORATION
VIRGINIA NATURAL GAS, INC.
CNG Tower
625 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3199
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File Number 70-7258
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Post Effective Amendment No. 4
to
FORM U-1
APPLICATION-DECLARATION UNDER THE PUBLIC UTILITY
HOLDING COMPANY ACT OF 1935
Item 1. DESCRIPTION OF PROPOSED TRANSACTION
The response under Item 1(a) is restated in its
entirety to read as follows.
PARTIES TO THE PROCEEDING
_________________________
Consolidated Natural Gas Company ("Consolidated") is a
Delaware corporation and a public utility holding company
registered as such under the Public Utility Holding Company Act
of 1935 ("Act"). It is engaged solely in the business of owning
and holding all of the outstanding securities, with the exception
of certain minor long-term debt, of fifteen subsidiaries. These
subsidiary companies are primarily engaged in natural gas
exploration, production, purchasing, gathering, transmission,
storage, distribution, by-product operation, research and other
activities related to the natural gas business.
Consolidated, CNG Tower, Pittsburgh, Pennsylvania
15222-3199 is the parent company of CNG Energy Company,
Consolidated System LNG Company, CNG Research Company and
Consolidated Natural Gas Service Company, Inc. ("Service
Company"), also located at CNG Tower, Pittsburgh, Pennsylvania
15222-3199; CNG Coal Company, CNG Producing Company, and its
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subsidiary CNG Pipeline Company, CNG Tower, 1450 Poydras Street,
New Orleans, Louisiana 70112-6000; CNG Transmission Corporation
("Transmission") and its wholly owned subsidiary, CNG Iroquois,
Inc. ("CNGI") and CNG Storage Service Company, 445 West Main
Street, Clarksburg, West Virginia 26301; CNG Gas Services
Corporation, One Park Ridge Center, P. O. Box 15746, Pittsburgh,
PA 15244-0746; and Consolidated's wholly-owned public utility
subsidiaries companies, The Peoples Natural Gas Company, CNG
Tower, Pittsburgh, Pennsylvania 15222-3197; The East Ohio Gas
Company, 1717 East Ninth Street, Cleveland, Ohio 44114; The River
Gas Company, 324 Fourth Street, Marietta, Ohio 45740; Virginia
Natural Gas, Inc., 5100 East Virginia Beach Boulevard, Norfolk,
Virginia 23502-3488; Hope Gas, Inc., P.O. Box 2868 Clarksburg,
West Virginia 26302-2868; and West Ohio Gas Company, 319 West
Market Street, Lima, Ohio 45802, (collectively referred to as
"Applicants").
PREVIOUS MONEY POOL ORDERS
__________________________
By Securities and Exchange Commission ("Commission") orders
dated June 12 and July 16, 1986, HCAR No. 24128 and 24150,
respectively, (collectively referred to as "Original Orders")
under this file number, Consolidated and all except four of its
above-mentioned subsidiaries were authorized to establish the
Consolidated System Money Pool ("Money Pool"). By Order dated
May 27, 1987, HCAR No. 24399 under this file number, CNG Pipeline
Company and CNG Gas Services Corporation (formerly, CNG Trading
Company) were authorized to become participants in the
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Money Pool. By Order dated February 14, 1990, HCAR No. 25040,
under File No. 70-7667, Virginia Natural Gas, Inc. was authorized
to become a participant in the Money Pool. By Order dated May
13, 1991, HCAR No. 25311, under File No. 70-7729, CNG Storage
Service Company was authorized to become a participant in the
Money Pool.
The Original Orders established that funds from the money
pool be administrated by Service Company and loaned on a
short-term basis to each participant company which have a need
for short-term funds, other than Consolidated. Consolidated is a
participant not a borrower. After satisfaction of borrowing
needs of the participant companies and after any possible
prepayment of outstanding indebtedness, Service Company, as agent
for the pool, invests excess funds and allocates the earnings
among those participant companies providing such excess funds.
Contributions to and borrowings from the pool is documented on
the books of each participant company. Loans are payable on
demand, may be prepaid without premium or penalty, and bear
interest, payable monthly, at a rate equal to the effective
short-term borrowing costs to Consolidated. In the event no such
loans are outstanding, the federal funds effective rate as quoted
daily by the Federal Reserve Bank of New York applies. These
rates are adjusted monthly to reflect the opportunity cost of
investments to the extent borrowings are obtained from
contributions that otherwise would be invested as surplus by the
lending participant company. In addition, any participant may
withdraw funds contributed to the money pool at any time.
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CNGI APPLICATION TO JOIN MONEY POOL
___________________________________
CNGI now joins in this filing as an applicant for the
purpose of becoming a full participant in the Money Pool. By
orders dated January 9, 1991, February 28, 1991 and May 7, 1991,
HCAR Nos. 25239, 25263, and 25308, respectively, relating to File
No. 70-7641 (collectively, referred to as "1991 Orders"), the
Commission authorized Transmission to provide, through June 30,
1993, up to $35,000,000 of financing to CNGI through the purchase
of common stock of CNGI and/or the making of open account
advances to CNGI. By order dated July 6, 1993 (HCAR No.
25845), the Commission extended the above-mentioned
authorization through June 30, 1996, except that the aggregate
amount of financing was reduced to $20 million ("1993 Order").
The open account advances under the 1993 Orders are to be under a
letter agreement between CNGI and Transmission and are to be
payable on demand at any time without premium or penalty and will
bear interest, payable monthly, equal to the effective cost of
short-term borrowings to Consolidated. If no such borrowings are
outstanding, the interest is to be predicated on the Federal
Funds' effective rate of interest as quoted daily by the Federal
Reserve Bank of New York. The purpose of the financing is to
provide funds to CNGI for use relating to its 9.4% general
partnership interest in Iroquois Gas Transmission System, L.P.,
which was formed to construct and own an interstate natural gas
pipeline extending from Canadian border to Long Island, New York.
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CNGI's participation in the Money Pool would allow its
available cash and/or short-term borrowing requirements to be
matched on a daily basis with those of other participants in the
pool, thereby minimizing the need for short-term borrowing from
Transmission. If CNGI's participation in the pool is authorized,
funds will be loaned from the Money Pool in the form of open
account advances under the same terms and limitations as
described in the Original Orders except that the interest rate on
such borrowings will be the same effective rate of interest as
Consolidated's weighted average effective rate of commercial
paper and/or revolving credit borrowings. Specifically, the
authorization period for participation in the Money Pool would be
through June 30, 1996. Since CNGI would continue to be permitted
under the 1993 Order to borrow an aggregate outstanding amount of
$20 million from all sources of financing described therein, any
borrowings from the Money Pool would be limited to $20 million
less the amount of financing obtained pursuant to the 1993 Order
from sources other than open account advances and previous open
account advances outstanding at the date of the Order issued in
this proceeding. In anticipation of future Partnership
distributions to CNGI, CNGI also proposes to contribute such
distributions in the form of available cash to the Money Pool.
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CHANGE IN INTER-AFFILIATE MONEY POOL INTEREST RATE
__________________________________________________
Where loans are made by CNGI to a subsidiary(ies)
through the Money Pool, the rate paid by the borrowing
subsidiary(ies) are equivalent to the rate earned by CNGI. It is
requested by the Applicants that the interest rate on borrowings
by participants in the Money Pool be changed from a rate equal to
the effective short-term borrowing costs of Consolidated, as
stated in the Original Orders dated June 12, 1986, to the same
effective rate of interest as Consolidated's weighted average
effective rate of commercial paper and/or revolving credit
borrowings, as stated as the interest to be paid to Consolidated
with respect to its contributions to the Money Pool in Commission
Order dated June 30, 1993, Release No. 35-25841, File No.
70-8195, authorizing the Consolidated System financing for the
period July 1, 1993 through June 30, 1994. This change in the
intra-affiliate interest rate would thus conform such rate to the
interest rate paid by the Money Pool participants to Consolidated
with respect to its contributions to the Money Pool.
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SIGNATURES
___________
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned Company has duly caused this
statement to be signed on its behalf by the undersigned thereunto
duly authorized.
CONSOLIDATED NATURAL GAS COMPANY
By L. D. Johnson
Executive Vice President
and Chief Financial Officer
CNG COAL COMPANY
CNG ENERGY COMPANY
CNG IROQUOIS, INC.
CNG PRODUCING COMPANY
CNG RESEARCH COMPANY
CNG STORAGE SERVICE COMPANY
CNG TRANSMISSION CORPORATION
CONSOLIDATED NATURAL GAS SERVICE
COMPANY, INC.
CONSOLIDATED SYSTEM LNG COMPANY
HOPE GAS, INC.
THE EAST OHIO GAS COMPANY
THE PEOPLES NATURAL GAS COMPANY
THE RIVER GAS COMPANY
THE EAST OHIO GAS COMPANY
CNG PIPELINE COMPAMNY
CNG GAS SERVICES CORPORATION
VIRGINIA NATURAL GAS, INC.
By H. P. Payne, Jr.
Their Attorney
Dated: March 11, 1994
