SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of CERTIFICATE
Cinergy Corp. et al. OF
File No. 70-8933 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") under the Public
Utility Holding Company Act of 1935 (the "Act"), Cinergy Investments, Inc.,
a nonutility subsidiary company of Cinergy ("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 7, 1997 (Rel. No. 35-26662),
Cinergy Services hereby notifies the Commission, on behalf of itself and the
other Applicants, that:
1. The following summarizes the business activities of Cinergy Solutions,
Inc. ("Solutions") from the date of the Commission's order through June 30,
1997 ("Start-Up Period")./1/
a. Energy Management Services ("EMS"). Within this authorized line
of business, Solutions began marketing various "National Energy Services"
(under the name "ProActiv Energy Services") to industrial and commercial
customers with facilities at multiple locations throughout the United States
to enable such "multi-account" customers to optimize their energy costs.
Specific services include (1) metering assessments, upgrade plans and
installation of real-time equipment, load and usage analysis; (2) billing
services, including summary billing and bill auditing; and (3) pricing
services consisting of rate analysis, negotiation assistance and price
consulting. Also within the EMS category, Solutions began marketing, on a
pilot basis, an "On-Site Energy Manager" concept, whereby large industrial
customers would retain, at the customer's facilities, a qualified Solutions
"energy advisor" to identify, develop and manage a comprehensive turn-key
program focused on energy savings and cost reduction within the customers'
facilities.
b. Asset Management Services. Within this category, Solutions began
marketing two types of services, large and small asset management, under the
names "Customized Cinergy Solutions" and "Energy Project Services,"
respectively. "Customized Cinergy Solutions" provide large commercial and
industrial customers assistance in managing their power needs. Specific
services include engineering services, turnkey energy project management
services, asset maintenance, operation, fuel procurement and financing/
leasing assistance. Target projects focus in the areas of substation, power
reliability, boilers, propane storage systems, and coal and fly ash handling.
"Energy Project Services" provide commercial and industrial customers
assistance in managing their energy needs within their facilities. Specific
services include auditing services, turnkey energy project management
services, financing/ leasing and facility energy management assistance.
Projects focus in the areas of power factor correction, lighting, HVAC, and
energy management systems.
c. Consulting Services. Nothing to report, except to the extent
comprising a part of the other activities described herein.
d. Project Development and Ownership. See Cinergy's Report on Form
U-9C-3 for the period ended June 30, 1997, the information therein relating
to Trigen-Cinergy Solutions LLC, a subsidiary company of Solutions.
e. Consumer Services. In partnership with an outside provider,
Solutions began offering to residential customers on a pilot basis a service
contract program (called "Appliance Protection Plus") covering parts and
labor for mechanical breakdowns of existing appliances and HVAC systems.
f. Customer Financing. In tandem with a bank, Solutions began
marketing "Quick Credit," a financial services program providing residential,
commercial, and institutional customers with financing for retrofit or
replacement of their HVAC systems and other types of energy related projects.
g. Third-Party Alliances. Other than as set forth above, and in
Cinergy's Report on Form U-9C-3 for the period ended June 30, 1997, with
respect to Trigen-Cinergy Solutions LLC, nothing to report.
2. During the Start-Up Period, Solutions received financial, executive,
legal, marketing and customer relations, engineering and construction, and
energy-related facility maintenance services from Cinergy Services
aggregating approximately $1,316,000.
3. Neither Cinergy nor Investments guaranteed any financial obligations of
Solutions during the Start-Up Period. Investments made net open-account
advances to Solutions totaling approximately $1,790,000 at annual interest
rates between 5.50% and 6%.
4. During the Start-Up Period Solutions entered into no long-term contract
pursuant to which Solutions engages in long-term operations, load control or
network control of any electric generation, transmission or distribution
facility.
5. Filed herewith, pursuant to a request for confidential treatment under
rule 104 of the Act, are unaudited financial statements for Solutions, dated
July 30, 1997 of Solutions.
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S I G N A T U R E
Pursuant to the requirements of the Act, the undersigned company has
duly caused this document to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: August 15, 1997
CINERGY SERVICES, INC.
By: /s/ William L. Sheafer
Vice President and Treasurer
ENDNOTES
/1/ The separation of these activities into separate "lines of business,"
using the classification scheme of the Commission's order, is somewhat
artificial in that certain aspects of certain activities overlap more than
one of the categories specified in the Commission's order.
