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File Number 70-7508
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Amendment No. 7
to
FORM U-1
APPLICATION-DECLARATION UNDER THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
By
CONSOLIDATED NATURAL GAS COMPANY
CNG Tower
625 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3199
(a registered holding company and the
parent of the other party)
CNG FINANCIAL SERVICES, INC.
CNG Tower
625 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3199
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
N. F. Chandler, General Attorney
Consolidated Natural Gas Service Company
CNG Tower
625 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3199
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File Number 70-7508
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 7
To
FORM U-1
APPLICATION-DECLARATION UNDER THE PUBLIC UTILITY
HOLDING COMPANY ACT OF 1935
Consolidated Natural Gas Company et al. hereby amend
their application-declaration under the above file number as
follows:
Item 1. Description of Proposed Transaction
___________________________________
1. The following two paragraphs are inserted after the
fifth paragraph under "II. PROPOSED TRANSACTIONS, A.
General", which place is on page 6 of Amendment No. 6.
"The increased use of Gas Equipment will lead to
greater consumption of natural gas by customers who
receive their gas supply through CNGT's pipelines
system; this increase in throughput, in turn, should
result in more competitive transportation rates for the
wholesale customers of CNGT, including the System LDCs,
and lower intrastate transportation costs on CNGT's
system as well. Such lower rates could be passed on to
the retail customers, thereby causing benefits to gas
customers at both the wholesale and
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retail level. The increased activity in CNGT's system
could also enhance the investments that CNGT's
customers, including the System LDCs, have made in
service agreements with it.
More utilization of Gas Equipment will also assist
customers of CNGES in solving their fuel problems. By
offering the financing services of CNGF to potential
customers in order to entice them to switch from using
fuels other than gas, it is possible for CNGES to
create new gas markets for itself while at the same
time causing such new customers to obtain the benefit
of more economical and clean burning natural gas. Some
of these new gas customers could also be transportation
customers of System LDCs, accordingly such new business
would also benefit the System LDCs."
2. The second paragraph under "A. Section 11(b)(1)
Functional Relationship Test", which paragraph begins on
page 15 of Amendment No. 6, is restated to read as follows.
"Like the appliance merchandising activities
involved in the ENGINEERS case, CNGF's activities will
have a close operating or functional relationship to
Consolidated"s gas utility business. Such activities
will also have a close operating or functional
relationship to the CNG System interstate pipeline and
marketing businesses which, in turn, significantly
benefit the System LDCs. The ability to provide Gas
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Equipment financing to Financing Customers (as defined
further herein) will enhance the ability of System
LDCs, CNGT and CNGES to compete with alternative fuels,
promote new uses of gas and familiarize customers with
new or unfamiliar gas utilizing equipment and
technologies. The increased use of Gas Equipment by
Financing Customers will, in many cases, lead to
greater consumption of natural gas and increased gas
sales and/or transportation by the System LDCs, CNGT
and CNGES. Increased gas sales and revenue will allow
the fixed costs of service to be shared by new
consumers, and the earnings expected from the
additional revenues as well as any profits derived from
Gas Equipment financing activities will benefit
Consolidated"s investors."
3. A footnote reference "(27)" is inserted at the end
of the first sentence of the sixth paragraph under "IV.
PROPOSED METHOD OF CONDUCTING BUSINESS," which paragraph is
on page 24 of Amendment No. 6; and a new footnote, reading
as follows, is added at the bottom of the page containing
the new footnote reference.
"(27) It should be noted that CNGF will also perform
financing activities for customers of CNGT and
CNGES, which are integral parts of the CNG
System. CNGT provides vital gas transportation
for all the System LDCs except West Ohio Gas
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Company. CNGES provides gas supply, storage and
transportation services to System LDCS, and may
also provide such types of services to customers
of System LDCs.
To the extent CNGT and CNGES also increase CNG
System throughput by providing services to
customers other than System LDCs, the spreading
of costs over a broader customer base should
also result in a reduction in gas costs of
System LDCs. Thus the benefits to CNGT and
CNGES from the financing activities of CNGF are
deemed to also significantly benefit the System
LDCs."
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 FINANCIAL SERVICES, INC.
By N. F. Chandler
Secretary
Dated: February 2, 1995
