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 docket filed by Cinergy
Corp., a Delaware corporation ("Cinergy"), a registered holding company
under the Public Utility Holding Company Act of 1935 (the "Act"), Cinergy
Investments, Inc., a Delaware corporation and direct, wholly-owned
nonutility subsidiary of Cinergy ("Cinergy Investments"), and Cinergy
Services, Inc., a Delaware corporation and direct, wholly-owned service
company subsidiary of Cinergy ("Cinergy Services") and (b) authorized by
the Commission in its order dated February 7, 1997, Rel. No. 35-26662,
Cinergy Services hereby provides the following information:
1. The following summary, covering the calendar quarterly period ended
September 30, 1997 ("Third Quarter 1997"), updates the business activities
of Cinergy Solutions, Inc. ("Cinergy Solutions"), a Delaware corporation
and direct, wholly-owned nonutility subsidiary of Cinergy Investments, as
previously reported in this docket:
a. Energy Management Services ("EMS"). Within this authorized
line of business, Cinergy Solutions continued marketing its "On-Site Energy
Manager" program on a pilot basis. Under this initiative, large industrial
customers would hire a qualified Cinergy Solutions "energy advisor" to be
posted on site at the customer's facilities to identify, develop and manage
a comprehensive turn-key program to realize energy savings and cost
reductions at those facilities. In connection with the formation of the
Cadence joint venture (see Cinergy's quarterly report on Form U-9C-3 for
the quarter ended September 30, 1997) Cinergy Solutions terminated its
"ProActiv Energy Services" (described in the previous rule 24 certificate
in this file).
b. Asset Management Services. Within this category, Cinergy
Solutions continued to market 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 Quarterly
Reports on Form U-9C-3 for information concerning Trigen-Cinergy Solutions
LLC, Trigen-Cinergy Solutions of Cincinnati LLC, and Trigen-Cinergy
Solutions of Illinois L.L.C., each a direct subsidiary of Cinergy Solutions
and of an affiliate of Trigen Energy Corporation, a thermal energy company
headquartered in White Plains, New York. The foregoing companies have been
established to own, operate or conduct preliminary developmental activities
with respect to cogeneration and/or thermal energy systems and facilities.
e. Consumer Services. In partnership with an outside provider,
Cinergy Solutions continued 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, Cinergy Solutions
continued 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 noted above, no new
information to report. See Cinergy's quarterly report on Form U-9C-3 for
the Third Quarter 1997 for information concerning Cadence Network LLC, a
joint venture company owned equally by subsidiaries of Cinergy, New Century
Energies and Florida Progress.
2. During the Third Quarter 1997, Cinergy Services provided financial,
executive, legal, accounting, marketing and customer relations, and
engineering and construction services to Cinergy Solutions for a total cost
of approximately $1,318,000.
3. During the Third Quarter 1997, neither Cinergy nor Cinergy Investments
guaranteed any financial obligations of Cinergy Solutions. During the
Third Quarter 1997, Cinergy Investments made net open-account advances to
Cinergy Solutions totaling approximately $622,444 at annual interest rates
between 5.99% and 6.03%.
4. During the Third Quarter 1997, Cinergy Solutions entered into no long-term
contract pursuant to which Cinergy 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 dated September 30,
1997 for Cinergy 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: November 14, 1997
CINERGY SERVICES, INC.
By: /s/ William L. Sheafer
Vice President and Treasurer
