SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of CERTIFICATE
Cinergy Corp. et al. OF
File No. 70-8589 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 orders with
respect thereto dated, respectively, March 8, 1996 (Rel. No. 35-26486) and
September 21, 1995 (Rel. No. 35-26376), Services hereby notifies the
Commission, on behalf of itself and the other Applicants, as follows:
1. For the calendar quarterly period ended December 31, 1996
("Fourth Quarter"), none of the Special Purpose Subsidiaries/1/ issued any
Recourse Debt Securities./2/
2. General description of activities of Investments and Special
Purpose Subsidiaries during the Fourth Quarter and of projects in which
they have an ownership interest:
(a) Investments. No new information to report.
(b) Energy Argentina. No new information to report.
(c) CGE ECK. No new information to report.
(d) Midlands. No new information to report.
3. Information on intercompany service transactions involving
the Special Purpose Subsidiaries during the Fourth Quarter:
(a) name of each associate company providing services and
associate company recipient:
(i) Cinergy Services/Energy Argentina
(ii) Cinergy Services/Cinergy UK
(b) listing of services provided:
(i) legal and executive
(ii) accounting, financial, legal and executive
(c) total dollar amount of services provided per associate
company service provider:
(i) $28,000
(ii) $640,000
4. The following unaudited financial statements are filed
herewith:
(a) Unaudited Special Purpose Subsidiaries Financial
Statements, dated December 31, 1996
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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 13, 1997
CINERGY SERVICES, INC.
By:/s/William L. Sheafer
Treasurer
Endnotes
/1/ As used herein, "Special Purpose Subsidiaries" refers to the
following direct or indirect subsidiaries of Cinergy that are either exempt
wholesale generators ("EWGs") or foreign utility companies ("FUCOs") or
companies organized for the exclusive purpose of acquiring and owning or
holding, directly or indirectly, interests in FUCOs (each, a "FUCO
Parent"): PSI Energy Argentina, Inc.("Energy Argentina"), CGE ECK, Inc. ("CGE
ECK"), Cinergy UK, Inc. (formerly M.E. Holdings, Inc.) ("Cinergy UK"),
Avon Energy Partners Holdings ("Avon Holdings"), Avon Energy Partners plc
("Avon Energy"), Midlands Electricity plc ("Midlands"). Costanera Power
Corp. ("Costanera"), PSI Argentina, Inc.("PSI Argentina"), PSI T&D
International, Inc., PSI Yacyreta, Inc., PSI Power Resource Development,
Inc., PSI Power Resource Operations, Inc., PSI International, Inc. and PSI
Sunnyside, Inc. are all inactive Cinergy system companies formed to act as
EWGs or FUCO Parents.
/2/ Recourse Debt Securities means any promissory note, bond or other
evidence of indebtedness issued by a Special Purpose Subsidiary to a
nonassociate company with respect to which Cinergy or Investments issues a
guarantee (including obtaining a letter of credit).
<TABLE>
<CAPTION>
CINERGY CORP.
SPECIAL PURPOSE SUBSIDIARIES
STATEMENTS OF INCOME (UNAUDITED)
QUARTER ENDED DECEMBER 31, 1996
PSI Energy Cinergy
Argentina Argentina CGE ECK U.K.
(in thousands)
<S> <C> <C> <C> <C>
Operating Revenues $ 0 $ 0 $ 0 $ 0
Operating Expenses
Other operation 0 0 0 0
Income Taxes 0 0 0 0
Taxes other than income taxes 0 0 0 0
0 0 0 0
Operating Income 0 0 0 0
Other Income and Expense - Net
Income Taxes (85) (11) 4 2,700
Equity in Earnings of Avon Holdings 0 0 0 13,861
Other - net 245 29 0 (644)
160 18 4 15,917
Income Before Interest and
Other Charges 160 18 4 15,917
Other interest 1 1 11 870
Net Income $ 159 $ 17 $ (7) $ 15,047
<FN>
NOTE: The following companies are inactive and thus have no activity to report;
COSTANERA POWER CORP.
PSI T&D INTERNATIONAL, INC.
PSI YACYRETA, INC.
PSI POWER RESOURCE DEVELOPMENT, INC.
PSI POWER RESOURCE OPERATIONS, INC.
PSI INTERNATIONAL, INC.
PSI SUNNYSIDE, INC.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
SPECIAL PURPOSE SUBSIDIARIES
BALANCE SHEETS (UNAUDITED)
AT DECEMBER 31, 1996
PSI Energy Cinergy
Argentina Argentina CGE ECK U.K.
(in thousands)
ASSETS
<S> <C> <C> <C> <C>
Current Assets
Accounts receivable $ 122 $ 0 $ 0 $ 0
Accounts receivable - affiliates 18,241 41 0 0
Other 94 33 0 0
18,457 74 0 0
Other Assets
Investment in Avon Holdings 0 0 0 592,661
Other (39) 10,705 0 424
(39) 10,705 0 593,085
$ 18,418 $ 10,779 $ 0 $ 593,085
CAPITALIZATION AND LIABILITIES
Common Stock Equity
Paid-in capital $ 9,587 $ 10,705 $ 0 $ 475,462
Retained earnings 7,756 17 (500) 26,430
Cumulative foreign currency
translation adjustment 0 0 0 (131)
Total common stock equity 17,343 10,722 (500) 501,761
Current Liabilities
Notes payable 0 0 0 27,000
Short-term bank borrowing 0 0 0 65,355
Accounts payable 66 0 0 0
Accounts payable - affiliates 0 0 711 1,719
Accrued taxes 699 57 (211) (2,680)
765 57 500 91,394
Other Liabilities
Deferred income taxes 134 0 0 (70)
Other 176 0 0 0
310 0 0 (70)
$ 18,418 $ 10,779 $ 0 $ 593,085
<FN>
NOTE: The following companies are inactive and thus have no activity to report;
COSTANERA POWER CORP.
PSI T&D INTERNATIONAL, INC.
PSI YACYRETA, INC.
PSI POWER RESOURCE DEVELOPMENT, INC.
PSI POWER RESOURCE OPERATIONS, INC.
PSI INTERNATIONAL, INC.
PSI SUNNYSIDE, INC.
</TABLE>
