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
December 31, 1996 ("Fourth Quarter").
2. Summary of business activities during Fourth Quarter:
(a) Construction. Construction of the central plant,
located at 4th and Walnut Streets in downtown
Cincinnati, began in October with an anticipated
in-service date of April 1, 1997. Mechanical, electrical
and rigging work began in the Fourth Quarter. In
addition, construction began in September on the first
element of the distribution system, consisting of a
network of underground pipes radiating from the central
plant. This work was complete, except for testing, by
the middle of December.
(b) Procurement. Equipment purchased by CoolCo included
pumps, fans, controls, low voltage electric equipment
and water treatment equipment.
(c) Lease. Lease negotiations 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, were being finalized in the
Fourth Quarter.
(d) Marketing. As of the end of the Fourth Quarter,
letters of intent covering an aggregate of about 19,000
tons of chilled water on an annual basis had been
executed with potential customers.
(e) Permits. A required conditional use variance with
respect to the central plant was obtained.
3. Summary of financing activities during Fourth Quarter:
(a) Investments made a series of open-account advances to
CoolCo totaling approximately $2,785,000 bearing
interest at annual interest rates between 5 and 6%.
4. Summary of services received by CoolCo during Fourth 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, marketing and executive (including project
and construction management)
(b) total dollar amount of services provided:
(ii) $176,000
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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: February 21, 1997
CINERGY SERVICES, INC.
By:/s/William L. Sheafer
Treasurer
<TABLE>
<CAPTION>
CINERGY COOLING CORP.
STATEMENT OF INCOME (UNAUDITED)
QUARTER ENDED DECEMBER 31, 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 (63)
Other - net 222
159
Income Before Interest and
Other Charges 159
Other interest 44
Net Income $ 115
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CINERGY COOLING CORP.
BALANCE SHEET (UNAUDITED)
AT DECEMBER 31, 1996
(in thousands)
<S> <C>
ASSETS
Current Assets
Accounts receivable $ -
Accounts receivable - affiliates -
Other -
-
Other Assets
Nonutility property 4,600
Accumulated depreciation -
4,600
Construction work in progress -
4,600
Other 5
4,605
$ 4,605
CAPITALIZATION AND LIABILITIES
Common Stock Equity
Paid-in capital $ -
Retained earnings (796)
Total common stock equity (796)
Current Liabilities
Accounts payable -
Accounts payable - affiliates 5,426
Accrued taxes (25)
5,401
Other Liabilities
Deferred income taxes -
Other -
-
$ 4,605
</TABLE>
