SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of CERTIFICATE
Cinergy Corp. et al. OF
File No. 70-8589 NOTIFICATION
(Public Utility Holding Company
Act of 1935)
With reference to the transactions (a) proposed in the
Application-Declaration on Form U-1, as amended, in the above
proceeding filed by Cinergy Corp., a registered holding company
("Cinergy"), Cinergy Investments, Inc., Cinergy's nonutility
subholding company ("Investments"), and Cinergy Services, Inc.,
Cinergy's service company subsidiary ("Cinergy Services"; and
together with Cinergy and Investments, the "Applicants"),
and (b) authorized by the Commission in its orders with respect
thereto dated, respectively, March 8, 1996 (Rel. No. 35-26486)
and September 21, 1995 (Rel. No. 35-26376), Services hereby
notifies the Commission, on behalf of itself and the other
Applicants, as follows:
1. For the calendar quarterly period ended March 31, 1996
("First Quarter 1996"), none of the Special Purpose
Subsidiaries/1/ issued any Recourse Debt Securities./2/
2. General description of activities of Investments and Special
Purpose Subsidiaries during the First Quarter 1996 and of
projects in which they have an ownership interest:
(a) Investments. Investments acts as a subholding company
of Cinergy with respect to the Cinergy system's nonutility
subsidiaries. In that capacity, Investments continued to act as
a pass-through financing vehicle (i.e., with funds from Cinergy)
for its direct and indirect subsidiaries.
(i) PSI Argentina, Inc. PSI Argentina ("PSIArg"),
which owns all the outstanding common stock of Costanera Power
Corporation ("Costanera") and otherwise engages in no business
activities, remained inactive in the First Quarter 1996 in
consequence of the sale by Costanera in the fall of 1995 of
substantially all its assets (an equity interest in an Argentine
power plant) to nonassociates.
(b) Costanera Power Corp. Costanera remained inactive in
the First Quarter 1996 (see above).
(c) PSI Energy Argentina, Inc. PSI Energy Argentina
continued to own an indirect interest in and to participate in
the operation of Edesur, S.A., an electric distribution system
serving the southern half of Buenos Aires, Argentina. PSI Energy
Argentina acquired its interest in Edesur in the privatization of
electric distribution assets in Argentina in 1992 and is an 8%
shareholder in Distrilec Inversora, S.A., which owns 51% of the
stock of Edesur. For further information respecting PSI Energy
Argentina, reference is made to the Application and to the Form
U-57 Notification of FUCO Status filed by Cinergy in respect of
PSI Energy Argentina on February 21, 1995.
(d) PSI T&D International, Inc. This Special Purpose
Subsidiary owns all of the outstanding capital stock of PSI
Yacyreta, Inc. and otherwise was inactive during the First
Quarter 1996.
(e) PSI Yacyreta, Inc. This Special Purpose Subsidiary
remained inactive during the First Quarter 1996.
(f) CGE ECK, Inc. This Special Purpose Subsidiary owns 3%
of the outstanding capital stock of Eck s.r.o. and otherwise was
inactive during the First Quarter 1996. Eck s.r.o. is a Czech
limited liability company
that owns and operates a generating facility in the Czech
Republic.
(g) PSI Power Resource Development, Inc., PSI Power
Operations, Inc., PSI International, Inc. and PSI Sunnyside, Inc.
All of these Special Purpose Subsidiaries remained inactive
during the First Quarter 1996.
3. Information on intercompany service transactions involving
the Special
Purpose Subsidiaries during the First Quarter 1996:
(a) name of each associate company providing services and
associate company recipient:
(i) Cinergy Services (service provider)/PSIArg
(service recipient)
(ii) PSI Energy, Inc. (service provider)/PSIArg
(service recipient)
(b) listing of services provided:
(i) Cinergy Services - accounting/tax, financial
(ii) PSI Energy - marketing and corporate development
(c) total dollar amount of services provided per associate
company service provider:
(i) Cinergy Services - $26,000
(ii) PSI Energy - $1,000
4. The following financial statements are filed herewith:
(a) Special Purpose Subsidiaries Consolidating Financial
Statements, dated March 31, 1996
<PAGE>
S I G N A T U R E
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, as amended, the undersigned company has duly
caused this document to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 15, 1996
CINERGY SERVICES, INC.
By:/s/William L. Sheafer
Treasurer
<PAGE>
ENDNOTES
/1/ As used herein, "Special Purpose Subsidiaries" refers to the
following direct or indirect subsidiaries of Cinergy: Costanera
Power Corp. ("Costanera"), PSI Argentina, Inc., PSI Energy
Argentina, Inc., PSI T&D International, Inc., PSI Yacyreta, Inc.,
CGE ECK, Inc., PSI Power Resource Development, Inc., PSI Power
Resource Operations, Inc., PSI International, Inc. and PSI
Sunnyside, Inc. The foregoing entities, together with E P
EDEGEL, Inc. ("EDEGEL"), were referred to in the Application as
the "Existing Special Purpose Subsidiaries." EDEGEL was sold to
an associate company of Entergy Corporation on September 27,
1995.
"Special Purpose Subsidiaries" was further defined in the
Application to include "New Special Purpose Subsidiaries" - that
is, companies (in addition to the Existing Special Purpose
Subsidiaries) to be organized (directly or indirectly) by Cinergy
or Investments, from time to time through December 31, 1999, for
the purpose of engaging exclusively (directly or indirectly) in
the business of acquiring and holding the securities of, and/or
providing services to, exempt wholesale generators ("EWGs") and
foreign utility companies ("FUCOs").
/2/ Recourse Debt Securities means any promissory note, bond or
other evidence of indebtedness issued by a Special Purpose
Subsidiary to a nonassociate company with respect to which
Cinergy or Investments issues a guarantee (including obtaining a
letter of credit).
