UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM U-13-60
ANNUAL REPORT
For the Period
Beginning January 1, 1995 and Ending December 31, 1995
to the
U. S. SECURITIES AND EXCHANGE COMMISSION
of
Cinergy Services, Inc.
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
Date of Incorporation: February 23, 1994
State or Sovereign Power under which Incorporated or Organized: Delaware
Location of Principal Executive Offices of Reporting Company: Cincinnati,
Ohio
Name, title and address of officer to whom correspondence concerning this
report should be addressed:
Charles J. Winger, Comptroller, 139 East Fourth Street,
Cincinnati, Ohio 45202
Name of Principal Holding Company Whose Subsidiaries are served by Reporting
Company:
Cinergy Corp.
<PAGE>
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing. Rule 94 provides than on or before the first day of
May in each calendar year, each mutual service company and each sub-
sidiary service company as to which the Commission shall have made
a favorable finding pursuant to Rule 88, and every service company
whose application for approval or declaration pursuant to Rule 88 is
pending shall file with the Commission an annual report on Form
U-13-60 and in accordance with the Instructions for that form.
2. Number of Copies. Each annual report shall be filed in duplicate.
The company should prepare and retain at least one extra copy for
itself in case correspondence with reference to the report becomes
necessary.
3. Period Covered by Report. The first report filed by any company
shall cover the period from the date the Uniform System of Accounts
was required to be made effective as to that company under Rules 82
and 93 to the end of that calendar year. Subsequent reports should
cover a calendar year.
4. Report Format. Reports shall be submitted on the forms prepared by
the Commission. If the space provided on any sheet of such form is
inadequate, additional sheets may be inserted of the same size as a
sheet of the form or folded to each size.
5. Money Amounts Displayed. All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands
of dollars or in hundred thousands of dollars, as appropriate and
subject to provisions of Regulation S-X (210.3-01(b)).
6. Deficits Displayed. Deficits and other like entries shall be indi-
cated by the use of either brackets or a parenthesis with correspon-
ding reference in footnotes. (Regulation S-X, 210.3-01(c)).
7. Major Amendments or Corrections. Any company desiring to amend or
correct a major omission or error in a report after it has been
filed with the Commission shall submit an amended report including
only those pages, schedules, and entries that are to be amended or
corrected. A cover letter shall be submitted requesting the
Commission to incorporate the amended report changes and shall be
signed by a duly authorized officer of the company.
8. Definitions. Definitions contained in Instruction 01-8 to the Uni-
form System of Accounts for Mutual Service Companies and Subsidiary
Service Companies, Public Utility Holding Company Act of 1935, as
amended February 2, 1979 shall be applicable to words or terms used
specifically within this Form U-13-60.
9. Organization Chart. The service company shall submit with each
annual report a copy of its current organization chart.
10. Methods of Allocation. The service company shall submit with each
annual report a listing of the currently effective methods of allo-
cation being used by the service company and on file with the
Securities and Exchange Commission pursuant to the Public Utility
Company Holding Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed. The
service company shall submit with each annual report a copy of the
annual statement supplied to each associate company in support of
the amount of compensation for use of capital billed during the
calendar year.
<PAGE>
Annual Report of Cinergy Services, Inc.
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or
Description of Schedules and Accounts Account No.
Glossary of Terms
Comparative Balance Sheet - Assets Schedule I
Comparative Balance Sheet - Liabilities Schedule I
Service Company Property Schedule II
Accumulated Provision for Depreciation and
Amortization of Service Company Property Schedule III
Investments Schedule IV
Accounts Receivable from Associate Companies Schedule V
Fuel Stock Expenses Undistributed Schedule VI
Stores Expense Undistributed Schedule VII
Miscellaneous Current and Accrued Assets Schedule VIII
Miscellaneous Deferred Debits Schedule IX
Research, Development or Demonstration
Expenditures Schedule X
Proprietary Capital Schedule XI
Long-term Debt Schedule XII
Current and Accrued Liabilities Schedule XIII
Notes to Financial Statements Schedule XIV
Comparative Income Statement Schedule XV
Analysis of Billing - Associate Companies Account 457
Analysis of Billing - Nonassociate Companies Account 458
Analysis of Charges for Service - Associate
and Nonassociate Companies Schedule XVI
Schedule of Expense by Department or
Service Function Schedule XVII
Departmental Analysis of Salaries Account 920
Outside Services Employed Account 923
Employee Pensions and Benefits Account 926
General Advertising Expense Account 930.1
Miscellaneous General Expenses Account 930.2
Rents Account 931
Taxes Other Than Income Taxes Account 408
Donations Account 426.1
Other Deductions Account 426.5
Notes to Statement of Income Schedule XVIII
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Description of Reports or Statements
Organization Chart
Methods of Allocation
Annual Statement of Compensation for Use of Capital Billed
<PAGE>
GLOSSARY OF TERMS
The following commonly used abbreviations or acronyms used in the text of this
report are defined below:
Term Definition
APBO Accumulated Postretirement Benefit Obligation
Cinergy Cinergy Corp.
Cinergy Services Cinergy Services, Inc.
CG&E The Cincinnati Gas & Electric Company (a
subsidiary of Cinergy)
February 1995 Order An Indiana Utility Regulatory Commission order
issued in February 1995
PSI PSI Energy, Inc. (a subsidiary of Cinergy)
PUHCA Public Utility Holding Company Act of 1935
Resources PSI Resources, Inc., PSI's previous parent
holding company
SEC The Securities and Exchange Commission
Service Agreement An agreement between Cinergy Services and Cinergy
client companies detailing services to be provided
by Cinergy Services and the method of compensation
Statement 87 Statement of Financial Accounting Standards
No. 87, "Employers' Accounting for Pensions"
Statement 106 Statement of Financial Accounting Standards
No. 106, "Employers' Accounting for Post-
retirement Benefits Other Than Pensions"
Statement 109 Statement of Financial Accounting Standards
No. 109, "Accounting for Income Taxes"
ULH&P The Union Light, Heat and Power Company (a
wholly-owned subsidiary of CG&E)
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Years Ended December 31, 1995 and 1994
Schedule I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year
REF December 31
ACCOUNT ASSETS AND OTHER DEBITS SCHED 1995 1994
<S> <C> <C> <C>
SERVICE COMPANY PROPERTY
101 Service Company Property II $1,271,563 -
107 Construction Work in Progress II - -
Total Property 1,271,563 -
108 Accumulated Provision for Depreciation and
Amortization of Service Company Property III (30,635) -
Net Service Company Property 1,240,928 -
INVESTMENTS
123 Investments in Associate Companies IV - -
124 Other Investments IV - -
Total Investments - -
CURRENT AND ACCRUED ASSETS
131 Cash - -
134 Special Deposits - -
135 Working Funds - -
136 Temporary Cash Investments IV - -
141 Notes Receivable - -
143 Accounts Receivable V - -
144 Accumulated Provision for Uncollectible Accounts - -
146 Accounts Receivable from Associate Companies V 14,115,902 748,916
152 Fuel Stock Expenses Undistributed VI - -
154 Materials and Supplies - -
163 Stores Expense Undistributed VII - -
165 Prepayments - -
174 Miscellaneous Current and Accrued Assets VIII - -
Total Current and Accrued Assets 14,115,902 748,916
DEFERRED DEBITS
181 Unamortized Debt Expense - -
184 Clearing Accounts 313,390 -
186 Miscellaneous Deferred Debits IX 289,563 1,186
188 Research, Development or Demonstration Expenditures X - -
190 Accumulated Deferred Income Taxes - -
Total Deferred Debits 602,953 1,186
TOTAL ASSETS AND OTHER DEBITS $15,959,783 $750,102
PROPRIETARY CAPITAL
201 Common Stock Issued (Note 2) XI - -
211 Miscellaneous Paid-In-Capital XI - -
215 Appropriated Retained Earnings XI - -
216 Unappropriated Retained Earnings XI (212,501) (3)
Total Proprietary Capital (212,501) (3)
LONG-TERM DEBT
223 Advances from Associate Companies XII - -
224 Other Long-Term Debt XII - -
225 Unamortized Premium on Long-Term Debt - -
226 Unamortized Discount on Long-Term Debt - -
Total Long-Term Debt - -
CURRENT AND ACCRUED LIABILITIES
231 Notes Payable - -
232 Accounts Payable 7,634,754 130,922
233 Notes Payable to Associate Companies XIII - -
234 Accounts Payable to Associate Companies XIII 8,318,363 619,183
236 Taxes Accrued - -
237 Interest Accrued - -
238 Dividends Declared - -
241 Tax Collections Payable - -
242 Miscellaneous Current and Accrued Liabilities XIII - -
Total Current and Accrued Liabilities 15,953,117 750,105
DEFERRED CREDITS
253 Other Deferred Credits 219,167 -
255 Accumulated Deferred Investment Tax Credits - -
Total Deferred Credits 219,167 -
282 ACCUMULATED DEFERRED INCOME TAXES - -
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $15,959,783 $750,102
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule II - SERVICE COMPANY PROPERTY
BALANCE AT RETIREMENTS OTHER BALANCE
BEGINNING OR CHANGES AT CLOSE
ACCOUNT DESCRIPTION OF YEAR ADDITIONS SALES (1) OF YEAR
<S> <C> <C> <C> <C> <C>
SERVICE COMPANY PROPERTY
301 Organization - - - - -
303 Miscellaneous Intangible Plant - - - - -
304 Land and Land Rights - - - - -
305 Structures and Improvements - - - - -
306 Leasehold Improvements - - - - -
307 Equipment (2) - - - - -
308 Office Furniture and Equipment - 1,271,563 - - 1,271,563
309 Automobiles, Other Vehicles and
Related Garage Equipment - - - - -
310 Aircraft and Airport Equipment - - - - -
311 Other Service Company Property (3) - - - - -
Sub-Total - 1,271,563 - - 1,271,563
107 Construction Work In Progress (4) - - - - -
Total - $1,271,563 - - $1,271,563
<FN>
NOTES
(1) Provide an explanation of those changes considered material: None
(2) Subaccounts are required for each class of equipment owned. The Service
Company shall provide a listing by subaccount of equipment additions during
the year and the balance at the close of the year:
BALANCE
AT CLOSE
Subaccount Description Additions OF YEAR
None
(3) Describe other Service Company property: None
(4) Describe construction work in progress: None
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule III - ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY
BALANCE AT BALANCE
BEGINNING OTHER CHANGES AT CLOSE
ACCOUNT DESCRIPTION OF YEAR ADDITIONS RETIREMENTS ADD (DEDUCT)(1) OF YEAR
<S> <C> <C> <C> <C> <C>
301 Organization - - - - -
303 Miscellaneous Intangible Plant - - - - -
304 Land and Land Rights - - - - -
305 Structures and Improvements - - - - -
306 Leasehold Improvements - - - - -
307 Equipment - - - - -
308 Office Furniture and Equipment - 30,635 - - 30,635
309 Automobiles, Other Vehicles and
Related Garage Equipment - - - - -
310 Aircraft and Airport Equipment - - - - -
311 Other Service Company Property - - - - -
Total - $30,635 - - $30,635
<FN>
NOTES
(1) Provide an explanation of those changes considered material: None
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each investment separately, with
description, including the name of issuing company, number of
shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each investment separately.
DESCRIPTION BALANCE AT BALANCE AT
BEGINNING CLOSE
OF YEAR OF YEAR
<S> <C> <C>
Account 123 - Investment in Associate Companies
None
Total - -
Account 124 - Other Investments
None
Total - -
Account 136 - Temporary Cash Investments
None
Total - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided
accommodation or convenience payments for associate companies, a
separate listing of total payments for each associate company
by subaccount should be provided.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF YEAR CLOSE OF YEAR
Account 146 - Accounts Receivable
from Associate Companies:
<S> <C> <C>
CG&E $628,919 $2,696,165
POWER INTERNATIONAL, INC. - 563,053
LAWRENCEBURG GAS COMPANY 6,357 53,867
KO TRANSMISSION COMPANY - 15
MIAMI POWER CORPORATION - 15,332
ULH&P 112,837 9,449,721
WEST HARRISON GAS AND ELECTRIC COMPANY 803 4,673
TRI-STATE IMPROVEMENT COMPANY - 103,547
CINERGY RESOURCES, INC. - 10,964
CGE ECK, INC. - 7,741
CINERGY INVESTMENTS, INC. - 481,589
POWER EQUIPMENT SUPPLY CO. - 24,827
WHOLESALE POWER SERVICES, INC. - 109,782
PSI RECYCLING, INC. - 22,125
CINERGY - 448,460
PSI ARGENTINA, INC. - 124,041
Total $748,916 $14,115,902
<FN>
Analysis of Convenience or Accommodation
Payments:
None
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to fuel stock
expenses during the year and indicate amount attributable to each associate
company. Under the section headed "Summary" listed below give an overall
report of the fuel functions performed by the service company.
DESCRIPTION LABOR EXPENSES TOTAL
<S> <C> <C> <C>
Account 152 - Fuel Stock Expenses Undistributed
None
Total - - -
<FN>
Summary:
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to stores
expense during the year and indicate amount attributable to each associate
company.
DESCRIPTION LABOR EXPENSES TOTAL
<S> <C> <C> <C>
Account 163 - Stores Expense Undistributed
None
Total - - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule VIII - MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF YEAR CLOSE OF YEAR
<S> <C> <C>
Account 174 - Miscellaneous Current and
Accrued Assets
None
Total - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class showing the number of items in each class.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF YEAR CLOSE OF YEAR
<S> <C> <C>
Account 186 - Miscellaneous Deferred Debits
MISCELLANEOUS (1 ITEM) - $934
ITEMS DEFERRED PENDING INVESTIGATION 1,186 288,629
Total $1,186 $289,563
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule X - RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development,
or demonstration project which incurred costs by the service
corporation during the year.
DESCRIPTION AMOUNT
<S> <C>
Account 188 - Research, Development, or
Demonstration Expenditures
None
Total -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XI - PROPRIETARY CAPITAL
NUMBER PAR OR
ACCOUNT OF SHARES STATED VALUE - OUTSTANDING CLOSE OF PERIOD -
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
<S> <C> <C> <C> <C>
201 Common Stock Issued 100 $0.05 50 -
</TABLE>
<TABLE>
<CAPTION>
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of
transactions which gave rise to the reported amounts.
DESCRIPTION AMOUNT
<S> <C>
211 Miscellaneous Paid-In-Capital None
215 Appropriated Retained Earnings None
Total
</TABLE>
<TABLE>
<CAPTION>
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing between
compensation for the use of capital owed or net loss remaining from servicing nonassociates
per the General Instructions of the Uniform System of Accounts. For dividends paid during
the year in cash or otherwise, provide rate percentage, amount of dividend, date declared
and date paid.
BALANCE BALANCE
AT BEGINNING NET INCOME DIVIDENDS AT CLOSE
ACCOUNT DESCRIPTION OF YEAR OR (LOSS) PAID OF YEAR
<S> <C> <C> <C> <C>
216 Unappropriated Retained Earnings ($3) (212,498) - ($212,501)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately
from advances on notes and advances on open account. Names of associate
companies from which advances were received shall be shown under the
class and series of obligation column. For Account 224 - Other Long-
Term Debt, provide the name of creditor company or organization, terms
of the obligation, date of maturity, interest rate, and the amount
authorized and outstanding.
TERMS OF OBLIGATION BALANCE AT
CLASS & SERIES DATE OF INTEREST AMOUNT BEGINNING
NAME OF CREDITOR OF OBLIGATION MATURIT RATE AUTHORIZED OF YEAR ADDITIONS
<S> <C> <C> <C> <C> <C> <C>
Account 223 - Advances from
Associate Companies: None
Total
Account 224 - Other Long-Term Debt: None
Total
<FN>
NOTES:
(1) Give an explanation of deductions: None
</TABLE>
<TABLE>
<CAPTION>
(CONTINUED)
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately
from advances on notes and advances on open account. Names of associate
companies from which advances were received shall be shown under the
class and series of obligation column. For Account 224 - Other Long-
Term Debt, provide the name of creditor company or organization, terms
of the obligation, date of maturity, interest rate, and the amount
authorized and outstanding.
BALANCE
(1) AT CLOSE
NAME OF CREDITOR DEDUCTIONS OF YEAR
<S> <C> <C>
Account 223 - Advances from
Associate Companies:
Total
Account 224 - Other Long-Term Debt:
Total
<FN>
NOTES:
(1) Give an explanation of deductions: None
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XIII - CURRENT AND ACCRUED LIABILITIES
Instructions: Provide balance of notes and accounts payable to each associate company.
Give description and amount of miscellaneous current and accrued liabilities.
Items less than $10,000 may be grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF YEAR CLOSE OF YEAR
<S> <C> <C>
Account 233 - Notes Payable to Associate Companies
None
Total - -
Account 234 - Accounts Payable to Associate Companies
PSI $619,183 $8,318,363
Total $619,183 $8,318,363
Account 242 - Miscellaneous Current and
Accrued Liabilities
None
Total - -
</TABLE>
<PAGE>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XIV - NOTES TO FINANCIAL STATEMENTS
Instructions: The space below is provided for important notes regarding the
financial statements, or any account thereof. Furnish particulars as to any
significant contingent assets or liabilities existing at the end of the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
1. Summary of Significant Accounting Policies
(a) Merger - Cinergy, a registered holding company under the PUHCA, was
created in the October 1994 merger of CG&E and Resources. Cinergy Services is
a wholly-owned subsidiary of Cinergy. Cinergy's other wholly-owned
subsidiaries are CG&E, PSI, and Cinergy Investments, Inc.
(b) Nature of Operations - Cinergy Services, a Delaware corporation, is the
service company for the Cinergy system, providing member companies with a
variety of administrative, management, and support services.
(c) Management's Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities. Estimates are also required with respect to the disclosure
of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. (See Note 9)
(d) Regulation - Cinergy Services is subject to regulation by the SEC under
the PUHCA. Cinergy Services' accounting policies conform to generally accepted
accounting principles and follow the Uniform System of Accounts for Mutual
Service Companies and Subsidiary Service Companies prescribed by the SEC
pursuant to the PUHCA.
(e) Federal and State Income Taxes - Deferred tax assets and liabilities are
recognized for the expected future tax consequences of existing differences
between the financial reporting and tax reporting bases of assets and
liabilities. Cinergy Services had no deferred tax assets or liabilities at
year end.
(f) Service Company Property - Service company property is stated at the
original cost of the purchased property.
(g) Depreciation - Provisions for depreciation are determined by using the
straight-line method applied to the cost of depreciable plant in service. The
rates are based on CG&E's latest depreciation study of the estimated service
lives and net cost of removal of properties.
(h) Income and Expenses - Services provided to affiliated companies are
provided at cost. The costs of services are determined on a direct charge
basis to the extent practicable. Indirect costs are charged using the ratios
defined in the Service Agreement. (See "Methods of Allocations".)
2. Common Stock
Cinergy Services is authorized to issue 100 shares of Common Stock at a par
value of five cents ($.05) per share. During 1994, 50 shares of common stock
were issued. All of Cinergy Services' outstanding common stock is held by
Cinergy.
3. Notes Payable
To better manage cash and working capital requirements, Cinergy's
subsidiaries, including Cinergy Services, participate in a money pooling
arrangement. Under the money pool, participants with surplus short-term
funds, whether from internal sources, bank loans, or commercial paper sales,
provide short-term loans to other system companies at rates that approximate
the costs of the funds in the money pool. The SEC's approval, pursuant to the
PUHCA, of the money pool extends through May 31, 1997. At December 31, 1995,
Cinergy Services had no notes payable outstanding.
4. Leases
Cinergy and its subsidiaries, including Cinergy Services, have entered into
operating lease agreements covering various facilities and properties,
including office space and computer, communications, and transportation
equipment. Total rental payments on operating leases for each of the past two
years were as follows:
1995 1994
(in millions)
Cinergy and subsidiaries $36 $36
Future minimum lease payments required under operating leases with remaining,
non-cancelable lease terms in excess of one year as of December 31, 1995, are
as follows:
Cinergy and
Subsidiaries
1996 $28
1997 22
1998 14
1999 7
2000 5
After 2000 20
$96
5. Pension Plans
The defined benefit pension plans of Cinergy's subsidiaries, of which Cinergy
Services is a participant, cover substantially all employees meeting certain
minimum age and service requirements. Plan benefits are determined under a
final average pay formula with consideration of years of participation, age at
retirement, and the applicable average Social Security wage base or benefit
amount.
The funding policies of the operating subsidiaries are to contribute annually
to the plans an amount which is not less than the minimum amount required by
the Employee Retirement Income Security Act of 1974 and not more than the
maximum amount deductible for income tax purposes. Contributions applicable
to the 1995 and 1994 plan years for Cinergy's subsidiaries were $15.4 million
and $3.5 million, respectively. The plans' assets consist of investments in
equity and fixed income securities.
Cinergy's pension cost for 1995 and 1994 included the following components:
1995 1994
(in millions)
Benefits earned during the period $ 18.5 $ 19.4
Interest accrued on projected
benefit obligations 61.4 54.9
Actual (return) loss on plans' assets (119.3) 8.0
Net amortization and deferral 61.1 (66.3)
Net periodic pension cost $ 21.7 $ 16.0
During 1994, CG&E recognized and additional $15.6 million of accrued pension
cost in accordance with Statement of Financial Accounting Standards No. 88,
Employers' Accounting for Settlements and Curtailments of Defined Pension
Plans and for Termination Benefits. This amount represents the cost
associated with additional benefits extended in connection with a voluntary
workforce reduction program.
1995 1994
Actuarial Assumptions:
For determination of projected benefit
obligations
Discount rate 7.50% 8.50%
Rate of increase in future compensation
PSI 4.50 5.50
CG&E and subsidiaries 4.50 5.50
For determination of pension cost
Rate of return on plans' assets
PSI 9.00 9.00
CG&E and subsidiaries 9.50 9.50
The following table reconciles the plans' funded status with amounts recorded
in the Consolidated Financial Statements of Cinergy. Under the provisions of
Statement 87, certain assets and obligations of the plans are deferred and
recognized in the Consolidated Financial Statements of Cinergy in subsequent
periods.
<TABLE>
<CAPTION>
1995 1994
Plans' Plan's Plans' Plan's
Assets Exceed Accumulated Assets Exceed Accumulated
Accumulated Benefits Accumulated Benefits
Benefits Exceed Assets Benefits Exceed Assets
(in millions)
<S> <C> <C> <C> <C>
Actuarial present value
of benefits
Vested benefits $(376.9) $(227.3) $(320.7) $(206.5)
Non-vested benefits (35.1) (16.0) (25.5) (11.0)
Accumulated benefit
obligations (412.0) (243.3) (346.2) (217.5)
Effect of future
compensation
increases (120.3) (53.2) (120.3) (52.2)
Projected benefit
obligations (532.3) (296.5) (466.5) (269.7)
Plans' assets at fair value 500.6 220.0 438.4 198.7
Projected benefit
obligations in excess of
plans' assets (31.7) (76.5) (28.1) (71.0)
Remaining balance of plans'
net assets existing at
date of initial application
of Statement 87 to be
recognized as a reduction
of pension cost in future
periods (7.7) (3.4) (8.6) (3.8)
Unrecognized net gain
resulting from experience
different from that
assumed and effects of
changes in assumptions (14.1) (1.3) (7.9) (1.9)
Prior service cost not
yet recognized in net
periodic pension cost 35.2 16.8 38.1 18.2
Accrued pension cost at
December 31 $ (18.3) $ (64.4) $ (6.5) $ (58.5)
</TABLE>
6. Other Postretirement Benefits
Cinergy's subsidiaries, including Cinergy Services, provides certain health
care and life insurance benefits to retired employees and their eligible
dependents. The health care benefits include medical coverage and
prescription drugs. Additionally, PSI provides dental benefits. PSI
employees must meet minimum age and service requirements to be eligible for
these postretirement benefits. All CG&E retirees are eligible to receive
health care benefits, while life insurance is provided to retirees who
participated in the plans and earned the right to postretirement life
insurance benefits prior to January 1, 1991. The health care and dental
benefits provided are subject to certain limitations, such as deductibles and
co-payments. Neither CG&E nor PSI currently pre-funds its obligations for
these postretirement benefits; however, PSI, in connection with the settlement
which resulted in the February 1995 Order, agreed to begin pre-funding.
Postretirement benefit cost for 1995 and 1994 included the following
components:
Health Life
Care Insurance Total
(in millions)
1995
Benefits earned during the period $ 4.4 $ .1 $ 4.5
Interest accrued on APBO 15.6 2.2 17.8
Amortization of transition obligations 8.1 .3 8.4
Net periodic postretirement benefit cost $28.1 $2.6 $30.7
1994
Benefits earned during the period $ 5.2 $ .2 $ 5.4
Interest accrued on APBO 13.8 2.2 16.0
Net amortization and deferral .1 - .1
Amortization of transition obligations 8.1 .3 8.4
Net periodic postretirement benefit cost $27.2 $2.7 $29.9
The following table reconciles the APBO of the health care and life insurance
plans with amounts recorded in the Consolidated Financial Statements of
Cinergy. Under the provisions of Statement 106, certain obligations of the
plans are deferred and recognized in the Consolidated Financial Statements of
Cinergy in subsequent periods.
Health Life
Care Insurance Total
(in millions)
1995
Actuarial present value of benefits
Fully eligible active plan participants $ (11.7) $ (1.1) $ (12.8)
Other active plan participants (112.0) (2.7) (114.7)
Retirees and beneficiaries (99.2) (26.4) (125.6)
Projected APBO (222.9) (30.2) (253.1)
Unamortized transition obligations 137.1 .7 137.8
Unrecognized prior service cost (.3) - (.3)
Unrecognized net loss resulting from
experience different from that assumed
and effects of changes in assumptions 26.1 .5 26.6
Accrued postretirement benefit obligations
at December 31, 1995 $ (60.0) $(29.0) $ (89.0)
1994
Actuarial present value of benefits
Fully eligible active plan participants $ (11.4) $ (.9) $ (12.3)
Other active plan participants (84.3) (2.3) (86.6)
Retirees and beneficiaries (92.0) (23.5) (115.5)
Projected APBO (187.7) (26.7) (214.4)
Unamortized transition obligations 145.2 1.0 146.2
Unrecognized net (gain) loss resulting
from experience different from that
assumed and effects of changes in
assumptions 2.2 (2.6) (.4)
Accrued postretirement benefit obligations
at December 31, 1994 $ (40.3) $(28.3) $ (68.6)
The following assumptions were used to determine the APBO:
1995 1994
Discount rate 7.50% 8.50%
Health care cost trend rate,
gradually declining to 5%
CG&E 8.00-11.00% 9.00-12.00%
PSI 8.00-10.00 8.00-12.00
Year ultimate trend rates achieved
CG&E 2002 2002
PSI 2007 2007
Increasing the health care cost trend rate by one percentage point in each
year would increase the APBO by approximately $37 million and $27 million for
1995 and 1994, respectively, and the aggregate of the service and interest
cost components of the postretirement benefit cost for each of 1995 and 1994
by approximately $3.4 million and $3.7 million, respectively.
The majority of CG&E's and its subsidiaries' postretirement benefit costs are
subject to PUCO jurisdiction. The PUCO has authorized CG&E to recover these
costs on an accrual basis. Prior to the recovery of these health care costs
in customers' rates on an accrual basis, the PUCO authorized CG&E to defer for
future recovery the difference between postretirement benefit costs determined
in accordance with the provisions of Statement 106 and the costs determined in
accordance with CG&E's previous accounting practice. CG&E's deferrals totaled
$4 million as of December 31, 1995. CG&E is requesting authorization for
recovery of the gas portion of these costs in its current gas rate proceeding.
CG&E will request authorization to begin recovering the electric portion of
these costs in its next retail rate proceeding.
In accordance with the February 1995 Order, PSI is recovering the cost of
postretirement benefits other than pensions on an accrual basis. Prior to the
recovery of these costs in customers' rates on an accrual basis, the
difference between postretirement benefit costs determined in accordance with
the provisions of Statement 106 and the costs determined in accordance with
PSI's previous accounting practice was deferred for future recovery. PSI's
deferrals totaled $21 million as of December 31, 1995. Commencing in February
1995, approximately $6 million of costs deferred for the period January 1,
1993, through July 31, 1993, are being recovered over a five-year period.
Recovery over a five-year period of the remaining deferrals is being requested
in PSI's current retail rate proceeding.
7. Net Loss
The net loss at December 31, 1995 and 1994, represents expenses not assigned
at year end. Such expenses are properly assigned in the succeeding year.
8. Income Taxes
Cinergy Services complies with the provisions of Statement 109. Statement 109
requires recognition of deferred tax assets and liabilities for the expected
future tax consequences of existing differences between the financial
reporting and tax reporting bases of assets and liabilities. Cinergy Services
has no deferred tax assets or liabilities at year-end.
Cinergy Services provides administrative, management and support services to
all other Cinergy companies. Its revenues and/or expenses are allocated to
the other affiliates and, therefore, Cinergy Services had no stand alone
taxable income.
Cinergy Services will participate in the filing of a consolidated Federal
income tax return with Cinergy for the year ended December 31, 1995. The
current tax liability is allocated among the members of the group pursuant to
a tax sharing agreement consistent with Rule 45(c) of the PUHCA.
9. Commitments and Contingencies
(a) 1996 Voluntary Workforce Reduction Program - In January 1996, Cinergy
announced a voluntary workforce reduction program which provides enhanced
retirement and/or severance benefits to eligible employees. There are 840
employees who meet certain age and service requirements and are potentially
eligible for enhanced retirement benefits under this program. Eligible
employees who do not meet age and service requirements would receive severance
benefits upon resignation from their employment. Program costs will not be
known until after the participation election period ends on May 15, 1996.
Cinergy intends to classify these costs as costs to achieve merger savings
which, consistent with the merger savings sharing mechanisms previously
approved by regulators, will result in the portion of these costs allocable to
Ohio electric jurisdictional customers (approximately 38%) being charged to
earnings in the second quarter of 1996, and the remaining costs allocable to
other jurisdictions being deferred for future recovery through rates as an
offset against merger savings. A significant portion of these benefits will be
eligible for funding from qualified retirement plan assets.
(b) Power International Litigation - On October 25, 1995, a suit was filed in
the Federal District Court for the Southern District of Ohio by three former
employees of Power International, a subsidiary of Investments, naming as
defendants Power International, Cinergy, Cinergy Investments, CG&E, PSI, James
E. Rogers, and William J. Grealis. (Mr. Rogers and Mr. Grealis are officers
and/or directors of the foregoing companies.) The lawsuit, which stems from
the termination of employment of the three former employees, alleges that they
entered into employment contracts with Power International based on the
opportunity to participate in potential profits from future investments in
energy projects in central and eastern Europe. The suit alleges causes of
action based upon, among other theories, breach of contract related to the
events surrounding the termination of their employment and fraud and
misrepresentation related to the level of financial support for future
projects. The suit alleges compensatory damages of $154 million based upon
assumed future success of potential future investments and punitive damages of
three times that amount. All defendants intend to defend vigorously against
the charges based upon meritorious defenses. Cinergy, CG&E, and PSI are
currently unable to predict the outcome of this litigation.
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XV - COMPARATIVE STATEMENTS OF INCOME
December 31
ACCOUNT DESCRIPTION 1995 1994
<S> <C> <C>
INCOME:
457 Services Rendered to Associate Companies $190,167,376 $1,724,031
458 Services Rendered to Nonassociate Companies - -
421 Miscellaneous Income or Loss - -
Total Income 190,167,376 1,724,031
EXPENSES:
920 Salaries and Wages 88,557,249 480,385
921 Office Supplies and Expenses 27,797,960 837,766
922 Administrative Expenses Transferred - Credit 7,320 -
923 Outside Services Employed 19,795,706 60,731
924 Property Insurance 433,850 -
925 Injuries and Damages 2,741,498 1,344
926 Employee Pension and Benefits 19,317,283 83,661
928 Regulatory Commission Expense 2,211,123 -
930.1 General Advertising Expenses 60,522 -
930.2 Miscellaneous General Expenses 16,969,753 223,688
931 Rents 4,663,934 -
932 Maintenance of Structures and Equipment 2,090,272 -
403, 404 Depreciation and Amortization Expense 32,069 36,459
408 Taxes Other Than Income Taxes 5,697,526 -
409 Income Taxes - -
410 Provision for Deferred Income Taxes - -
411 Provision for Deferred Income Taxes - Credit - -
411.5 Investment Tax Credit - -
421 Miscellaneous Income or Loss - -
426.1 Donations - -
426.5 Other Deductions - -
427 Interest on Long-term Debt - -
430 Interest on Debt to Associate Companies - -
431 Other Interest Expense 3,809 -
Total Expense 190,379,874 1,724,034
NET LOSS ($212,498) ($3)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
ANALYSIS OF BILLING
ASSOCIATE COMPANIES - ACCOUNT 457
DIRECT INDIRECT COMPENSATION
COSTS COSTS FOR USE TOTAL
CHARGED CHARGED OF CAPITAL AMOUNT
NAME OF ASSOCIATE COMPANY 457-1 457-2 457-3 BILLED
<S> <C> <C> <C> <C>
PSI $64,279,959 $15,744,306 - $80,024,265
PSI ENERGY ARGENTINA, INC. 25 - - 25
CINERGY INVESTMENTS, INC. 469,154 12,239 - 481,393
POWER EQUIPMENT SUPPLY CO. 24,639 142 - 24,781
WHOLESALE POWER SERVICES, INC. 100,031 9,751 - 109,782
PSI RECYCLING, INC. 21,059 598 - 21,657
PSI ARGENTINA, INC. 123,926 34 - 123,960
CG&E 81,015,971 16,276,349 - 97,292,320
POWER INTERNATIONAL, INC. 555,644 1,556 - 557,200
LAWRENCEBURG GAS COMPANY 43,456 2,329 - 45,785
KO TRANSMISSION COMPANY 15 - - 15
MIAMI POWER CORPORATION 15,332 - - 15,332
ULH&P 7,924,614 1,563,650 - 9,488,264
WEST HARRISON GAS AND ELECTRIC COMPANY 3,847 23 - 3,870
TRI-STATE IMPROVEMENT COMPANY 1,511,602 - - 1,511,602
CINERGY RESOURCES, INC. 10,927 37 - 10,964
CGE ECK 7,741 - - 7,741
CINERGY 448,228 192 - 448,420
TOTAL $156,556,170 $33,611,206 - $190,167,376
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES - ACCOUNT 458
Instructions: Provide a brief description of the services rendered to each nonassociate company.
DIRECT INDIRECT COMPENSATION EXCESS
COSTS COSTS FOR USE OR TOTAL
CHARGED CHARGED OF CAPITAL TOTAL DEFICIENCY AMOUNT
NAME OF NONASSOCIATE COMPANY 458-1 458-2 458-3 COST 458-4 BILLED
<S> <C> <C> <C> <C> <C> <C>
None
TOTAL - - - - - -
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XVI - ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES
INSTRUCTIONS: Total cost of service will equal for associate and nonassociate companies
the total amount billed under their separate analysis of billing schedules.
DIRECT INDIRECT
ACCOUNT DESCRIPTION OF ITEMS COST COST TOTAL
<S> <C> <C> <C>
ASSOCIATE COMPANY CHARGES
920 Salaries and Wages $53,400,952 $35,156,297 $88,557,249
921 Office Supplies & Expenses 14,633,848 13,164,112 27,797,960
922 Administrative Expenses
Transferred - Credit 7,320 - 7,320
923 Outside Services Employed 11,880,290 7,915,416 19,795,706
924 Property Insurance 339,264 94,586 433,850
925 Injuries & Damages 2,656,644 84,854 2,741,498
926 Employee Pension & Benefits 11,251,358 8,065,925 19,317,283
928 Regulatory Commission Expense 1,490,803 720,320 2,211,123
930.1 General Advertising Expenses 34,869 25,653 60,522
930.2 Miscellaneous General Expenses 14,693,333 2,276,420 16,969,753
931 Rents 2,315,590 2,348,344 4,663,934
932 Maintenance of Structures
and Equipment 1,819,269 271,003 2,090,272
403 Depreciation & Amortization - 32,069 32,069
408 Taxes, Other Than Income Taxes 3,555,383 2,142,143 5,697,526
409 Income Taxes -
410 Provision for Deferred Income Taxes -
411 Provision for Deferred Income
Taxes - Credit -
411.5 Investment Tax Credit -
421 Miscellaneous Income or Loss -
426.1 Donations -
426.5 Other Deductions -
427 Interest on Long-term Debt -
431 Other Interest Expense - 3,809 3,809
Total Expenses $118,078,923 $72,300,951 $190,379,874
Compensation for Use of
Equity Capital - - -
430 Interest on Debt to Associate
Companies - - -
Total Cost of Service $118,078,923 $72,300,951 $190,379,874
NON-ASSOC COMPANY CHARGES
920 Salaries and Wages - - -
921 Office Supplies & Expenses -
922 Administrative Expenses
Transferred - Credit -
923 Outside Services Employed -
924 Property Insurance -
925 Injuries & Damages -
926 Employee Pension & Benefits -
928 Regulatory Commission Expense -
930.1 General Advertising Expenses -
930.2 Miscellaneous General Expenses -
931 Rents -
932 Maintenance of Structures
and Equipment -
403 Depreciation & Amortization -
408 Taxes, Other Than Income Taxes -
409 Income Taxes -
410 Provision for Deferred Income Taxes -
411 Provision for Deferred Income
Taxes - Credit -
411.5 Investment Tax Credit -
421 Miscellaneous Income or Loss
426.1 Donations -
426.5 Other Deductions -
427 Interest on Long-term Debt -
431 Other Interest Expense - - -
Total Expenses - - -
Compensation for Use of
Equity Capital - - -
430 Interest on Debt to Associate
Companies - - -
Total Cost of Service - - -
TOTAL CHARGES FOR SERVICE
920 Salaries and Wages $53,400,952 $35,156,297 $88,557,249
921 Office Supplies & Expenses 14,633,848 13,164,112 27,797,960
922 Administrative Expenses
Transferred - Credit 7,320 - 7,320
923 Outside Services Employed 11,880,290 7,915,416 19,795,706
924 Property Insurance 339,264 94,586 433,850
925 Injuries & Damages 2,656,644 84,854 2,741,498
926 Employee Pension & Benefits 11,251,358 8,065,925 19,317,283
928 Regulatory Commission Expense 1,490,803 720,320 2,211,123
930.1 General Advertising Expenses 34,869 25,653 60,522
930.2 Miscellaneous General Expenses 14,693,333 2,276,420 16,969,753
931 Rents 2,315,590 2,348,344 4,663,934
932 Maintenance of Structures
and Equipment 1,819,269 271,003 2,090,272
403 Depreciation & Amortization - 32,069 32,069
408 Taxes, Other Than Income Taxes 3,555,383 2,142,143 5,697,526
409 Income Taxes - - -
410 Provision for Deferred Income Taxes - - -
411 Provision for Deferred Income
Taxes - Credit - - -
411.5 Investment Tax Credit - - -
421 Miscellaneous Income or Loss
426.1 Donations - - -
426.5 Other Deductions - - -
427 Interest on Long-term Debt - - -
431 Other Interest Expense - 3,809 3,809
Total Expenses $118,078,923 $72,300,951 $190,379,874
Compensation for Use of
Equity Capital - - -
430 Interest on Debt to Associate
Companies - - -
Total Cost of Service $118,078,923 $72,300,951 $190,379,874
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XVII - SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION
INSTRUCTIONS: Indicate each department or service
function. (See Instruction 01-3
General Structure of Accounting System:
Uniform System of Account(s))
TOTAL INFORMATION METERS AND ELEC. SYSTEM
ACCOUNT DESCRIPTION OF ITEMS AMOUNT OVERHEAD SYSTEMS TRANSPORTATION MAINTENANCE
<S> <C> <C> <C> <C> <C>
920 Salaries and Wages $88,557,249 - $8,135,118 $6,906,178 -
921 Office Supplies and Expenses 27,797,960 - 3,830,130 1,566,999 2,000
922 Administrative Expense
Transferred - Credit 7,320 - - - -
923 Outside Services Employed 19,795,706 - 1,049,817 1,297 -
924 Property Insurance 433,850 - - 181,998 -
925 Injuries and Damages 2,741,498 - 21,075 27,658 -
926 Employee Pensions and Benefits 19,317,283 - 2,073,725 1,019,602 244
928 Regulatory Commission Expense 2,211,123 - - 8 -
930.1 General Advertising Expenses 60,522 - - - -
930.2 Miscellaneous General Expenses 16,969,753 4,880 742,873 909,183 -
931 Rents 4,663,934 - 1,735,206 967 -
932 Maintenance of Structures
and Equipment 2,090,272 - 823,095 2,726
403 Depreciation and Amortization Expense 32,069 32,069 - - -
408 Taxes Other Than Income Taxes 5,697,526 - 629,181 401,106 2
409 Income Taxes - - - - -
410 Provision for Deferred Income Taxes - - - - -
411 Provision for Deferred Income
Taxes - Credit - - - - -
411.5 Investment Tax Credit - - - - -
421 Miscellaneous Income or Loss - - - - -
426.1 Donations - - - - -
426.5 Other Deductions - - - - -
427 Interest on Long-term Debt - - - - -
430 Interest on Debt to Associate
Companies - - - - -
431 Other Interest Expense 3,809 3,809 - - -
Total Expenses $190,379,874 $40,758 $19,040,220 $11,017,722 $2,246
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(CONTINUED)
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XVII - SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION
INSTRUCTIONS: Indicate each department or service
function. (See Instruction 01-3
General Structure of Accounting System:
Uniform System of Account(s))
INTERNAL ELEC. TRANS. HUMAN MATERIALS
ACCOUNT DESCRIPTION OF ITEMS AUDITING & DISTRIBUTION ACCOUNTING RESOURCES MANAGEMENT
<S> <C> <C> <C> <C> <C>
920 Salaries and Wages $1,141,838 $7,165,573 $4,868,292 $10,423,658 $6,969,345
921 Office Supplies and Expenses 117,966 744,286 5,295,292 1,171,351 670,512
922 Administrative Expense
Transferred - Credit - - - - 7,320
923 Outside Services Employed - 327,569 1,474,246 70,251 574,152
924 Property Insurance - - - - 153,327
925 Injuries and Damages 3,795 20,072 11,574 844,256 14,611
926 Employee Pensions and Benefits 220,926 1,516,646 992,228 3,133,211 1,241,494
928 Regulatory Commission Expense - - - - 16
930.1 General Advertising Expenses - - - - -
930.2 Miscellaneous General Expenses - 265,320 3,403 113,419 258,806
931 Rents - 5,228 14,311 9,241 5,981
932 Maintenance of Structures
and Equipment - 980 - 9,472 173
403 Depreciation and Amortization Expense - - - - -
408 Taxes Other Than Income Taxes 84,298 517,013 369,429 301,571 407,749
409 Income Taxes - - - - -
410 Provision for Deferred Income Taxes - - - - -
411 Provision for Deferred Income
Taxes - Credit - - - - -
411.5 Investment Tax Credit - - - - -
421 Miscellaneous Income or Loss - - - - -
426.1 Donations - - - - -
426.5 Other Deductions - - - - -
427 Interest on Long-term Debt - - - - -
430 Interest on Debt to Associate
Companies - - - - -
431 Other Interest Expense - - - - -
Total Expenses $1,568,823 $10,562,687 $13,028,775 $16,076,430 $10,303,486
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(CONTINUED)
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XVII - SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION
INSTRUCTIONS: Indicate each department or service
function. (See Instruction 01-3
General Structure of Accounting System:
Uniform System of Account(s))
MARKETING & ENVIRONMENTAL PUBLIC POWER ENG. &
ACCOUNT DESCRIPTION OF ITEMS FACILITIES CUST. RELATIONS AFFAIRS AFFAIRS CONSTRUCTION
<S> <C> <C> <C> <C> <C>
920 Salaries and Wages $2,978,454 $8,133,954 $1,209,592 $852,134 $10,250,179
921 Office Supplies and Expenses 1,079,276 4,615,151 529,503 206,460 2,320,379
922 Administrative Expense
Transferred - Credit - - - - -
923 Outside Services Employed 86,817 931,775 215,255 109,467 879,234
924 Property Insurance - - - - -
925 Injuries and Damages 13,990 13,024 3,214 1,372 37,008
926 Employee Pensions and Benefits 803,650 1,176,507 267,832 392,915 2,036,404
928 Regulatory Commission Expense - - - - -
930.1 General Advertising Expenses - 388 - 45,597 -
930.2 Miscellaneous General Expenses 362,278 2,472,181 199,669 941,308 5,965,218
931 Rents 339,992 48,830 60 25,253 13,561
932 Maintenance of Structures
and Equipment 1,141,818 24,660 1,291 5,106 22,491
403 Depreciation and Amortization Expense - - - - -
408 Taxes Other Than Income Taxes 259,445 389,461 89,593 80,674 736,945
409 Income Taxes - - - - -
410 Provision for Deferred Income Taxes - - - - -
411 Provision for Deferred Income
Taxes - Credit - - - - -
411.5 Investment Tax Credit - - - - -
421 Miscellaneous Income or Loss - - - - -
426.1 Donations - - - - -
426.5 Other Deductions - - - - -
427 Interest on Long-term Debt - - - - -
430 Interest on Debt to Associate
Companies - - - - -
431 Other Interest Expense - - - - -
Total Expenses $7,065,720 $17,805,931 $2,516,009 $2,660,286 $22,261,419
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(CONTINUED)
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XVII - SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION
INSTRUCTIONS: Indicate each department or service
function. (See Instruction 01-3
General Structure of Accounting System:
Uniform System of Account(s))
INVESTOR
ACCOUNT DESCRIPTION OF ITEMS RELATIONS LEGAL RATES FINANCE RIGHT OF WAY
<S> <C> <C> <C> <C> <C>
920 Salaries and Wages $328,136 $3,394,235 $864,107 $2,208,662 $1,524,490
921 Office Supplies and Expenses 47,831 2,070,858 26,104 280,968 144,078
922 Administrative Expense
Transferred - Credit - - - - -
923 Outside Services Employed 375 3,254,442 - 207,921 4,952,971
924 Property Insurance - - - 98,525 -
925 Injuries and Damages 1,640 1,680,876 1,482 10,095 5,026
926 Employee Pensions and Benefits 45,470 907,224 213,791 623,007 250,203
928 Regulatory Commission Expense - 881,964 1,329,135 - -
930.1 General Advertising Expenses - 14,488 - - -
930.2 Miscellaneous General Expenses 917,250 482,383 460 101,101 1,767,123
931 Rents 1,529 109,533 3,377 7,952 19,247
932 Maintenance of Structures
and Equipment - 10,383 - 264 11,393
403 Depreciation and Amortization Expense - - - - -
408 Taxes Other Than Income Taxes 24,322 265,369 63,981 166,589 98,154
409 Income Taxes - - - - -
410 Provision for Deferred Income Taxes - - - - -
411 Provision for Deferred Income
Taxes - Credit - - - - -
411.5 Investment Tax Credit - - - - -
421 Miscellaneous Income or Loss - - - - -
426.1 Donations - - - - -
426.5 Other Deductions - - - - -
427 Interest on Long-term Debt - - - - -
430 Interest on Debt to Associate
Companies - - - - -
431 Other Interest Expense - - - - -
Total Expenses $1,366,553 $13,071,755 $2,502,437 $3,705,084 $8,772,685
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(CONTINUED)
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XVII - SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION
INSTRUCTIONS: Indicate each department or service
function. (See Instruction 01-3
General Structure of Accounting System:
Uniform System of Account(s))
POWER
ACCOUNT DESCRIPTION OF ITEMS FUELS PLANNING EXECUTIVE PLANNING
<S> <C> <C> <C> <C>
920 Salaries and Wages $621,786 $578,105 $4,877,956 $5,125,457
921 Office Supplies and Expenses 128,563 114,438 1,970,178 865,637
922 Administrative Expense
Transferred - Credit - - - -
923 Outside Services Employed 36,835 204 5,251,149 371,929
924 Property Insurance - - - -
925 Injuries and Damages 1,499 2,098 14,366 12,767
926 Employee Pensions and Benefits 135,508 102,199 1,018,049 1,146,448
928 Regulatory Commission Expense - - - -
930.1 General Advertising Expenses - - - 49
930.2 Miscellaneous General Expenses 946 - 1,411,939 50,013
931 Rents 428 1,478,509 844,729
932 Maintenance of Structures
and Equipment 93 - 29,152 7,175
403 Depreciation and Amortization Expense - - - -
408 Taxes Other Than Income Taxes 45,647 42,791 349,156 375,050
409 Income Taxes - - - -
410 Provision for Deferred Income Taxes - - - -
411 Provision for Deferred Income
Taxes - Credit - - - -
411.5 Investment Tax Credit - - - -
421 Miscellaneous Income or Loss - - - -
426.1 Donations - - - -
426.5 Other Deductions - - - -
427 Interest on Long-term Debt - - - -
430 Interest on Debt to Associate
Companies - - - -
431 Other Interest Expense - - - -
Total Expenses $971,305 $839,835 $16,400,454 $8,799,254
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
DEPARTMENTAL ANALYSIS OF SALARIES - ACCOUNT 920
----------- DEPARTMENTAL SALARY EXPENSE -----------
NAME OF DEPARTMENT ---- INCLUDED IN AMOUNTS BILLED TO NUMBER OF
INDICATE EACH DEPARTMENT TOTAL PARENT OTHER NON- PERSONNEL
OR SERVICE FUNCTION AMOUNT COMPANY ASSOCIATES ASSOCIATES END OF YEAR
<S> <C> <C> <C> <C> <C>
Information Systems $8,135,118 $ $8,135,118 322
Meters and Transportation 6,906,178 6,906,178 307
Electric System Maintenance - - -
Marketing and Customer Relations 8,133,954 8,133,954 190
Electric Transmission and Distribution
Engineering and Construction 7,165,573 7,165,573 232
Power Engineering and Construction 10,250,179 10,250,179 333
Human Resources 10,423,658 10,423,658 116
Materials Management 6,969,345 6,969,345 256
Facilities 2,978,454 2,978,454 165
Accounting 4,868,292 36 4,868,256 167
Power Planning 5,125,457 5,125,457 209
Public Affairs 852,134 852,134 34
Legal 3,394,235 16,891 3,377,344 71
Rates 864,107 864,107 23
Finance 2,208,662 9,123 2,199,539 47
Right of Way 1,524,490 1,524,490 54
Internal Auditing 1,141,838 1,141,838 28
Environmental Affairs 1,209,592 1,209,592 36
Fuels 621,786 621,786 8
Investor Relations 328,136 328,136 13
Planning 578,105 578,105 10
Executive 4,877,956 35,165 4,842,791 118
TOTAL
$88,557,249 $61,215 $88,496,034 $ 2,739
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
OUTSIDE SERVICES EMPLOYED - ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the
aggregate amounts paid to any one payee and included within one sub-
account is less than $25,000, only the aggregate number and amount of
all such payments included within the subaccount need by shown. Provide
a subtotal for each type of service.
RELATIONSHIP
A" - ASSOC.
FROM WHOM PURCHASED ADDRESS "NA" - NONASSOC AMOUNT
<S> <C> <C> <C>
AUDITING SERVICES:
Arthur Andersen LLP Indianapolis, IN 46204 NA $900,009
Arthur Andersen LLP Cincinnati, OH 45264 NA 101,375
TOTAL AUDITING SERVICES 1,001,384
ENGINEERING SERVICES:
ABB Power T&D Company, Inc. Cary, NC 27511 NA 73,000
Babcock & Wilcox Co. Cincinnati, OH 45246 NA 27,500
BHE Environmental, Inc. Cincinnati, OH 45241 NA 29,445
Burns & McDonnell Kansas City, MO 64141 NA 30,154
Danes & Moore Cincinnati, OH 45203 NA 41,075
Fuller, Hossbarger, Scott &
May Engineering Cincinnati, OH 45246 NA 31,938
H.C. Nutting Company Cincinnati, OH 45226 NA 49,909
Sargent & Lundy Engineers Chicago, IL 60603 NA 522,634
Stone & Webster Engineering Cherry Hill, NJ 08034 NA 135,000
Others (3) NA 51,279
TOTAL ENGINEERING SERVICES 991,934
LEGAL SERVICES:
Akin, Gump, Strauss, Hauer & Feld Washington, DC 20036 NA 554,336
Baker & Daniels Indianapolis, IN 46204 NA 32,168
Barnes & Thornburg Indianapolis, IN 46204 NA 59,332
Bingham, Summers, Welsh,
& Spilman Indianapolis, IN 46204 NA 152,859
Fulbright & Jaworski Washington, DC 20004 NA 92,686
Fuller & Henry Cincinnati, OH 45246 NA 28,692
Gallagher, Boland Neiburger &
Brosnan Washington, DC 20005 NA 115,347
Shaw, Pittman, Potts & Trowber Washington, DC 20037 NA 51,565
Skadden, Arps, Slate,
Meagher & Flom Washington, DC 20005 NA 408,955
Squire, Sanders, & Dempsey Cleveland, OH 44114 NA 177,481
Taft, Stettinius & Hollister Cincinnati, OH 45202 NA 190,497
Others (15) NA 112,805
TOTAL LEGAL SERVICES 1,976,723
TREE TRIMMING SERVICES:
Asplundh Tree Expert Co. Milford, OH 45150 NA $2,177,102
Halter Tree Service, Inc. Vincennes, IN 47951 NA 34,325
Henkels & McCoy, Inc. Blue Bell, PA 19422 NA 64,430
Nelson Tree Service, Inc. Dayton, OH 45439 NA 1,212,839
Townsend Tree Service, Inc. Muncie, IN 47308 NA 1,080,101
TOTAL TREE TRIMMING SERVICES 4,568,797
OTHER SERVICES:
Analysts International Corp. Detroit, MI 48277 NA 207,211
Applied Integration Services Milford, OH 45150 NA 56,286
Chicago Consulting Actuaries Chicago, IL 60661 NA 25,393
Cincinnati Art Museum Cincinnati, OH 45202 NA 28,188
City of Hamilton Hamilton, OH 45011 NA 74,861
Complete Business Solutions Detroit, MI 48277 NA 195,232
Consulting Center, Inc. Cincinnati, OH 45248 NA 50,475
Convergent Group - UGC Englewood, CO 80111 NA 36,275
Coopers & Lybrand Pittsburgh, PA 15264 NA 52,414
CSC Consulting Charlotte, NC 28290 NA 63,088
CSC Index Charlotte, NC 28290 NA 1,875,446
Dayton Power & Light Dayton, OH 45401 NA 139,121
Dickstein, Sharpiro & Morin LLP Washington, DC 20037 NA 38,629
East Central Area Reliability Canton, OH 44702 NA 108,154
Electric Power Research
Institute Charlotte, NC 28260 NA 89,250
Energy Investments, Inc. Boston, MA 02110 NA 29,900
Energy Systems Associates Pittsburgh, PA 15222 NA 25,588
Energy Ventures Analysis, Inc. Arlington, VA 22209 NA 37,875
Escalation Consultants, Inc. Gaithersburg, MD 20879 NA 75,955
Ethicon Endo-Surgery Cincinnati, OH 45242 NA 47,125
Federal Energy Regulatory
Commission Chicago, IL 60673 NA 241,457
Fifth Third Bank Cincinnati, OH 45202 NA 199,627
Finanacial Accounting Institute Tenafly, NJ 07670 NA 25,359
Forbes, Forbes & Associates Cleveland, OH 44113 NA 25,200
Groundwater Technology, Inc. Dallas, TX 75284 NA 36,202
Heidrick & Strubbles, Inc. Chicago, IL 60675 NA 81,698
Hillenbrand Mitsch Design Indianapolis, IN 46268 NA $37,353
Infotech Consulting, Inc. Plainfield, IN 46168 NA 238,021
Institute of Advanced Mfg. Cincinnati, OH 45216 NA 55,123
Intergraph Corporation Mason, OH 45040 NA 46,576
Harold Isaacs Columbus, OH 47201 NA 50,000
Joseph Graves & Assoc., Inc. Indianapolis, IN 46280 NA 37,590
JVR Consulting Services, Inc. Corona Del Mar, CA 92625 NA 31,651
Maciel, Norman & Associados Buenos Aries, Argentina NA 59,987
Marston & Marston, Inc. St. Louis, MO 63141 NA 202,801
McKinsey & Co., Inc. Washington, DC 20004 NA 626,100
Darrell V. Menscer Myrtle Beach, SC 29575 NA 52,604
Miami Systems Corp. Cincinnati, OH 45242 NA 90,491
Moody's Investors Service Atlanta, GA 30368 NA 41,250
The NorthBridge Group Waltham, MA 02154 NA 275,003
Ohio Edison Akron, OH 44308 NA 49,732
Origin Technology in Business Columbus, OH 43271 NA 66,569
Owen Specialty Services Fenton, MI 48430 NA 151,339
People Working Cooperatively Cincinnati, OH 45237 NA 290,129
PNC Bank Ohio, N.A. Cincinnati, OH 45203 NA 102,113
Pomeroy Computer Resources Cincinnati, OH 45203 NA 40,319
Price Waterhouse LLP Pittsburgh, PA 15264 NA 42,755
Professional Computer
Consultants Dayton, OH 45405 NA 56,313
Professional Data Resource, Inc. Cincinnati, OH 45263 NA 50,903
Resource Support Associates Denver, CO 80217 NA 94,701
Restructuring Associates, Inc. Washington, DC 20036 NA 288,250
Rockdale Temple Cincinnati, OH 45236 NA 27,000
Sap America, Inc. Pittsburgh, PA 15264 NA 155,913
Scott Madden & Associates, Inc. Raleigh, NC 27608 NA 137,632
Software Consulting Partners Media, PA 19063 NA 135,958
Software Synergy, Inc. Indianapolis, IN 46250 NA 108,072
Standard & Poor's Corporation Philadelphia, PA 19170 NA 54,900
Total Results, Inc. Scottsdale, AZ 85261 NA 65,904
Twenty-First Strategies McLean, VA 22101 NA 26,447
Warren Steele & Associates Hillsboro, OH 45133 NA 32,883
Working in Neighborhoods, Inc. Cincinnati, OH 45223 NA 36,876
Others (415) NA 3,531,601
TOTAL OTHER SERVICES 11,256,868
TOTAL OUTSIDE SERVICES $19,795,706
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
EMPLOYEE PENSIONS AND BENEFITS - ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit
program provided by the service company. Such
listing should be limited to $25,000.
DESCRIPTION AMOUNT
<S> <C>
Pension $3,255,057
Medical/Dental insurance 12,393,795
401(k)contributions 2,538,677
Life insurance 782,066
Others (5) 347,688
TOTAL $19,317,283
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
GENERAL ADVERTISING EXPENSES - ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amounts included in Account 930.1,
"General Advertising Expenses", classifying the items
according to the nature of the advertising and as defined
in the account definition. If a particular class includes
an amount in excess of $3,000 applicable to a single payee,
show separately the name of the payee and the aggregate
amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
<S> <C> <C>
Advertising Agency Fees -
Customer Education Nielsen Printing $12,189
Sportsprint Promotions 6,000
Others (44) 22,516
Promotional Items Aladdin Sales &
Marketing 15,872
Chef's Choice Catering 3,945
TOTAL $60,522
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
MISCELLANEOUS GENERAL EXPENSES - ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account
930.2, "Miscellaneous General Expenses", classifying
such expenses according to their nature. Payments and
expenses permitted by Section 321 (b)(2) of the Federal
Election Campaign Act, as amended by Public Law 94-283
in 1976 (2 U.S.C. 441 (b)(2) shall be separately
classified.
DESCRIPTION AMOUNT
<S> <C>
Company Membership Fees and Dues $1,017,513
Miscellaneous Materials and Supplies Purchase 6,701,007
Customer Incentive/Rebates - Demand-side Mana 2,140,275
Directors' Fees 239,888
Annual Report Expenses 261,211
Miscellaneous Shareholder and Trustee Expense 65,671
Technical, General, Computer and Engineering 1,126,628
Respondent's Labor, Materials and Supplies 2,985,348
Miscellaneous Stores and Transportation Expen 759,583
Other Miscellaneous Items 1,672,629
TOTAL $16,969,753
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
RENTS - ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account
931, "Rents", classifying such expenses by major
groupings of property, as defined in the account
definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
<S> <C>
Computer Equipment Rent $3,104,903
Operating and Work Equipment Rent 418,859
Accounting and Office Equipment Rent 951,906
Other Rent 188,266
TOTAL $4,663,934
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
TAXES OTHER THAN INCOME TAXES - ACCOUNT 408
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than
Income Taxes". Separate the analysis into two groups
(1)Other than U.S. Government taxes, and (2)U.S Govern-
ment taxes. Specify each of the various kinds of taxes
and show the amounts thereof. Provide a subtotal for
each class of tax.
KIND OF TAX AMOUNT
<S> <C>
Other Than U.S. Government Taxes:
Sales & Use Tax $14,749
State Unemployment 83,223
Sub-total 97,972
U.S. Government Taxes:
Federal Excise Tax on Phone Service 11,050
Social Security Taxes 5,546,892
Federal Unemployment 41,612
Sub-total 5,599,554
TOTAL $5,697,526
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
DONATIONS - ACCOUNT 426.1
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1, "Donations"
classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of detail
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
<S> <C> <C>
None
TOTAL
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
OTHER DEDUCTIONS - ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5, "Other
Deductions", classifying such expenses according to their nature.
DESCRIPTION NAME OF PAYEE AMOUNT
<S> <C> <C>
None
TOTAL
</TABLE>
<PAGE>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
Schedule XVIII - NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding
the statement of income or any account thereof. Furnish
particulars as to any significant increase in services
rendered or expenses incurred during the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
See Schedule XIV - Notes to Financial Statements
<PAGE>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
ORGANIZATION CHART
Chairman
- Executive
- Internal Auditing
|
|
Vice Chairman and
Chief Executive Officer
- Executive
|
|
_______________________________________________________________
| | |
| | |
Senior Manager, Vice-President, General General Manager,
Human Resource Strategy Counsel and Secretary Corporate Communication
& Investor Relations
- - Human Resources - Legal
- Rates - Investor Relations
- Public Affairs
Chairman
- Executive
- Internal Auditing
|
|
Vice Chairman and
Chief Executive Officer
- Executive
|
|
_______________________________________________
| |
| |
Group Vice-President and Group Vice-President,
Chief Financial Officer Chief Transformation Officer
- - Information Systems - Materials Management
- - Finance - Facilities
- - Accounting - Environmental Affairs
- - Planning - Marketing & Customer Relations
- Meters and Transportation
- Power Engineering & Construction
- Electric Transmission & Distribution
Engineering and Construction
- Electric System Maintenance
- Right of Way
- Power Planning
- Fuels
<PAGE>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
METHODS OF ALLOCATION
The allocation of expenses not directly attributable to a particular Client
Company
are based on the following factors:
1. Sales Ratio
A ratio, based on domestic firm kilowatt-hour electric sales (and/or the
equivalent cubic feet of gas sales, where applicable), excluding intra-system
sales, for the immediately preceding twelve consecutive calendar months, the
numerator of which is for a Client Company and the denominator of which is for
all domestic utility Client Companies. This ratio will be determined
annually, or at such times as may be required due a significant change.
2. Electric Peak Load Ratio
A ratio, based on the sum of the monthly domestic firm electric maximum system
demands for the immediately preceding twelve consecutive calendar months, the
numerator of which is for a Client Company and the denominator of which is for
all domestic utility Client Companies. This ratio will be determined
annually, or at such time as may be required due to a significant change.
3. Number of Customers Ratio
A ratio, based on the sum of the firm domestic electric customers (and/or gas
customers where applicable) at the end of each month for the immediately
preceding twelve consecutive calendar months, the numerator of which is for a
Client Company and the denominator of which is for all domestic utility Client
Companies. This ratio will be determined annually, or at such time as may be
required due to a significant change.
4. Number of Employees Ratio
A ratio, based on the sum of the number of employees at the end of each month
for the immediately preceding twelve consecutive calendar months, the
numerator of which is for a Client Company or Service Company Function and the
denominator of which is for all Client Companies (and Cinergy Corp.'s non-
utility and non-domestic utility affiliates, where applicable) and/or the
Service Company. This ratio will be determined annually, or at such time as
may be required due to a significant change.
5. Construction Expenditure Ratio
A ratio, based on construction expenditures, net of reimbursements, for the
immediately preceding twelve consecutive calendar months, the numerator of
which is for a Client Company and the denominator of which is for all Client
Companies. Separate ratios will be computed for total construction
expenditures and appropriate functional plant (i.e. production, transmission,
distribution, and general) classifications. This ratio will be determined
annually, or at such time as may be required due to a significant change.
6. Circuit Miles of Electric Distribution Lines Ratio
A ratio, based on installed circuit miles of domestic electric distribution
lines at the end of the immediately preceding calendar year, the numerator
of which is for a Client Company and the denominator of which is for all
domestic utility Client Companies. This ratio will be determined annually,
or at such time as may be required due to a significant change.
7. Number of Central Processing Unit Seconds Ratio
A ratio, based on the sum of the number of central processing unit seconds
expended to execute mainframe computer software applications for the
immediately preceding twelve consecutive calendar months, the numerator
of which is for a Client Company or Service Company Function, and the
denominator of which is for all Client Companies, (and Cinergy Corp.'s
non-utility and non-domestic utility affiliates, where applicable) and/or
the Service Company. This ratio will be determined annually, or at such
time as may be required due to a significant change.
<PAGE>
Annual Report of Cinergy Services, Inc.
For the Year Ended December 31, 1995
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
None
<PAGE>
ANNUAL REPORT OF Cinergy Services, Inc.
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act
of 1935 and the rules and regulations of the Securities and Exchange
Commission issued thereunder, the undersigned company has duly caused
this report to be signed on its behalf by the undersigned officer
thereunto duly authorized.
Cinergy Services, Inc.
(Name of Reporting Company)
By: /S/ Charles J. Winger
(Signature of Signing Officer)
Charles J. Winger, Comptroller
(Printed Name and Title of Signing Officer)
Date: April 30, 1996
<TABLE> <S> <C>
<ARTICLE> OPUR2
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FORM U-13-60 OF CINERGY SERVICES, INC., AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH DOCUMENT.
</LEGEND>
<CIK> 0000899652
<NAME> CINERGY CORP.
<SUBSIDIARY>
<NUMBER> 2
<NAME> CINERGY SERVICES, INC.
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 1,240,928
<TOTAL-INVESTMENTS> 0
<TOTAL-CURRENT-ASSETS> 14,115,902
<TOTAL-DEFERRED-DEBITS> 602,953
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 15,959,783
<TOTAL-PROPRIETARY-CAPITAL> (212,501)
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 15,953,117
<TOTAL-DEFERRED-CREDITS> 219,167
<DEFERRED-INCOME-TAX> 0
<TOT-LIABIL-AND-PROPRIET-CAP> 15,959,783
<SERVICES-ASSOCIATE-COMPANIES> 190,167,376
<SERVICES-NON-ASSOCIATE-COMP> 0
<MISC-INCOME-OR-LOSS> 0
<TOTAL-INCOME> 190,167,376
<SALARIES-AND-WAGES> 88,557,249
<EMPLOYEE-PENSION-AND-BENEFIT> 19,317,283
<OTHER-EXPENSES> 82,505,342
<TOTAL-EXPENSES> 190,379,874
<NET-INCOME> (212,498)
<TOTAL-EXPENSES-DIRECT-COST> 118,078,923
<TOTAL-EXPENSES-INDIRECT-COST> 72,300,951
<TOT-EXP-DIRECT-AND-INDIRECT> 190,379,874
<PERSONNEL-END-OF-YEAR> 2,739
