FORM U-6B-2
CERTIFICATE OF NOTIFICATION
under the Public Utility Holding Company Act of 1935 ("Act")
PSI Energy, Inc. ("PSI"), an Indiana corporation and electric utility
subsidiary of Cinergy Corp., a registered holding company under the Act,
hereby notifies the Commission that it has issued the securities described
below pursuant to an exemption from Section 6(a) of the Act as further
described below:
1. Type of security: Promissory note ("Note").
2. Issue, renewal or guaranty: Issuance.
3. Principal amount: $24,600,000.
4. Annual rate of interest: Variable.
5. Date of issue: November 7, 1996.
6. Date of maturity: March 1, 2019, subject to redemption prior to maturity,
including a mandatory sinking fund redemption in the aggregate
principal amount of $19,600,000 on January 1, 2014.
7. Name of person to whom Note was issued: the City of Princeton, Indiana
("City").
8. Collateral: Irrevocable direct-pay letter of credit issued by Canadian
Imperial Bank of Commerce ("Bank") expiring on November 7, 2001 unless
terminated or extended. PSI will reimburse the Bank for all amounts
drawn under the letter of credit.
9. Consideration received for the Note: Loan by the City to PSI in an equal
aggregate principal amount of the proceeds from the issue and sale on
November 7, 1996 of the City's Pollution Control Revenue Refunding
Bonds, 1996 Series (PSI Energy, Inc. Project).
10. Application of proceeds of the Note: Redemption of the City's $19,600,000
Pollution Control Revenue Bonds, 1973 Series (Public Service Company of
Indiana, Inc. Project A), dated as of December 15, 1973, originally
issued in the principal amount of $22,000,000, and the City's
$5,000,000 Pollution Control Revenue Bonds, 1979 Series (Public Service
Company of Indiana, Inc. Project B), dated as of March 1, 1979,
originally issued to finance PSI's portion of the costs of acquiring
and constructing certain pollution quality facilities at PSI's Gibson
Generating Station in Gibson County, Indiana.
11. Exemption claimed: Rule 52(a).
<PAGE>
PSI ENERGY, INC.
By: /s/ William L. Sheafer
Treasurer
Dated: November 12, 1996
