SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of CERTIFICATE
Cinergy Corp. et al. OF
File No. 70-8767 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 order dated February 20, 1996
(Rel. No. 35-26474), Services hereby notifies the Commission, on behalf of
itself and the other Applicants, as follows:
1. Enclosed herewith as Exhibit A are an unaudited balance sheet and
income statement of Cinergy Cooling Corp. ("CoolCo") as of and for the
calendar quarterly period ended September 30, 1996 ("Third Quarter").
2. Summary of business activities during Third Quarter:
(a) Construction. Street construction began on the distribution
piping system that will deliver the thermal energy products (initially
chilled water) to downtown buildings in Cincinnati. Work was centered on
4th Street between Vine and Walnut streets as well as in the intersections
of 4th and Vine and 4th and Walnut.
(b) Procurement. CoolCo purchased from outside parties various
equipment and services integral to its business, including chillers,
cooling towers and distribution pipe and associated materials and
engineering services involving mechanical, electrical and structural
services. Four manufactured cooling towers and four manufactured chillers
have been purchased. These will be delivered to the central production
plant, to be located in and occupying part of an existing building at 4th
and Walnut streets. Three of the four chillers are in place in the
subbasement of the 4th and Walnut building. The fourth chiller and the
cooling towers, which will be hoisted onto the roof of the 4th and Walnut
building, are scheduled for delivery and installation in the fourth quarter
of 1996.
(c) Lease. Lease negotiations continued with respect to the
contemplated central plant building at 4th and Walnut streets between
CoolCo and Tri-State Improvement Company, a nonutility associate company of
CoolCo and the owner of the building.
(d) Customers. Letters of intent have been entered into with
potential customers covering an aggregate of about 10,000 tons of chilled
water on an annual basis.
(e) Permits. Modifications to the zoning code were finalized with
the City of Cincinnati to permit the district cooling central plant at the
4th and Walnut location. Activities associated with obtaining the actual
conditional use variance continue.
3. Summary of financing activities during Third Quarter:
(a) Investments made a series of open-account advances to CoolCo
totaling approximately $1,571,000. The advances bear interest at annual
interest rates between 5 and 6%.
4. Summary of services received by CoolCo during Third Quarter from
Cinergy Services, identifying each service by function and the aggregate
cost thereof charged to CoolCo:
(a) listing of services provided by Cinergy Services:
(i) legal, financial, marketing and executive (including project
and construction management)
(b) total dollar amount of services provided:
(i) $317,000
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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: November 25, 1996
CINERGY SERVICES, INC.
By:/s/William L. Sheafer
Treasurer
<TABLE>
<CAPTION>
CINERGY COOLING CORP.
STATEMENT OF INCOME (UNAUDITED)
QUARTER ENDED SEPTEMBER 30, 1996
(in thousands)
<S> <C>
Operating Revenues $ -
Operating Expenses
Other operation -
Income Taxes -
Taxes other than income taxes -
-
Operating Income -
Other Income and Expense - Net
Income Taxes 287
Other - net (802)
(515)
Income Before Interest and
Other Charges (515)
Other interest 20
Net Income ($535)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CINERGY COOLING CORP.
BALANCE SHEET (UNAUDITED)
AT SEPTEMBER 30, 1996
(in thousands)
<S> <C>
ASSETS
Current Assets
Accounts receivable $ -
Accounts receivable - affiliates -
Other -
-
Other Assets
Nonutility property 1,239
Accumulated depreciation -
1,239
Construction work in progress -
1,239
Other 2
1,241
$1,241
CAPITALIZATION AND LIABILITIES
Common Stock Equity
Paid-in capital $ -
Retained earnings (911)
Total common stock equity (911)
Current Liabilities
Accounts payable -
Accounts payable - affiliates 2,641
Accrued taxes (489)
2,152
Other Liabilities
Deferred income taxes -
Other -
-
$1,241
</TABLE>
