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: $35,000,000.
4 Annual rate of interest: Variable.
5 Date of issue: February 26, 1997.
6 Date of maturity: April 1, 2022, subject to prior redemption.
7 Name of acquiree of Note: the City of Princeton, Indiana ("City").
8. Collateral: Irrevocable direct-pay letter of credit issued by Morgan
Guaranty Trust Company of New York ("Bank") expiring on February 1, 2002
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
February 26, 1997 of the City's Pollution Control Revenue Refunding Bonds,
1997 Series (PSI Energy, Inc. Project).
10. Application of proceeds of the Note: Redemption of the City's
$35,000,000 7.60% Pollution Control Refunding Revenue Bonds, 1987 Series
(Public Service Company of Indiana, Inc. Project C), dated as of March 15,
1987, which refunded the City's 12.75% Pollution Control Revenue Bonds 1982
Series B (Public Service Company of Indiana, Inc. Project C), which were
issued to finance PSI's portion of the costs of acquiring and constructing
PSI's 50.05% undivided interest in certain pollution control and solid
waste disposal facilities at Unit 5 of PSI's Gibson Generating Station in
Gibson County, Indiana.
11. Exemption claimed: Rule 52(a).
PSI ENERGY, INC.
By: /s/ William L. Sheafer
Treasurer
Dated: March 4, 1997
