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 March 31, 1997
("First
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 First 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. This company has entered into a contract with
a
nonaffiliated third-party for the sale of its 3%
ownership
interest in ECK s.r.o.
(d) Midlands. No new information to report.
3. Information on intercompany service transactions involving
the Special
Purpose Subsidiaries during the First 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) $23,000
(ii) $176,000
4. The following unaudited financial statements are filed
herewith:
(a) Unaudited Special Purpose Subsidiaries Financial
Statements,
dated March 31, 1997
<PAGE>
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: May 14, 1997
CINERGY SERVICES, INC.
By:/s/William L. Sheafer
Vice President and 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
(each, a "FUCO Parent") organized for the exclusive purpose of
acquiring
and owning or holding, directly or indirectly, interests in
FUCOs: 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 Energy Partners plc, Midlands Electricity
plc
("Midlands"). Costanera Power Corp., PSI Argentina, Inc., 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 MARCH 31, 1997
PSI Energy Cinergy
Argentina Argentina CGE ECK U.K.
(in thousands)
<S> <C> <C> <C> <C>
Operating Revenues ....................................... $-- $-- $ -- $ --
Operating Expenses
Other operation .......................................... -- -- -- --
Income Taxes ............................................. -- -- -- --
Taxes other than income taxes ............................ -- -- -- --
----- ----- -------- --------
Operating Income ......................................... -- -- -- --
Other Income and Expense - Net
Income Taxes ............................................. (89) (158) 3 (4,214)
Equity in Earnings of Avon Holdings ...................... -- -- -- 26,500
Other - net .............................................. 255 417 -- (181)
----- ----- -------- --------
166 259 3 22,105
Income Before Interest and
Other Charges ............................................ 166 259 3 22,105
Other interest ........................................... -- -- 10 1,208
Net Income ............................................... $ 166 $ 259 $ (7) $ 20,897
<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.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
SPECIAL PURPOSE SUBSIDIARIES
BALANCE SHEETS (UNAUDITED)
AT MARCH 31, 1997
PSI Energy Cinergy
Argentina Argentina CGE ECK U.K.
(in thousands)
ASSETS
<S> <C> <C> <C> <C>
Current Assets
Accounts receivable ...................................... $ 122 $ -- $ -- $ --
Accounts receivable - affiliates ......................... 18,207 478 -- --
Other .................................................... 84 13 -- --
------- ------- -------- --------
18,413 491 -- --
Other Assets
Investment in Avon Holdings .............................. -- -- -- 593,099
Other .................................................... -- 10,705 -- 322
------- ------- -------- --------
-- 10,705 -- 593,421
$18,413 $11,196 $ -- $593,421
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C> <C>
Common Stock Equity
Paid-in capital .......................................... $ 9,587 $10,705 $ -- $ 483,462
Retained earnings (deficit) .............................. 7,921 276 (507) 47,327
Cumulative foreign currency translation
adjustment ............................................... -- -- -- (1,166)
------- ------- --------- ---------
Total common stock equity ................................ 17,508 10,981 (507) 529,623
Current Liabilities
Notes payable ............................................ -- -- -- 19,000
Accounts payable ......................................... 66 -- -- 771
Accounts payable - affiliates ............................ -- 14 719 1,776
Accrued taxes ............................................ 529 201 (212) 2,034
Accrued interest ......................................... -- -- -- 15
------- ------- --------- ---------
595 215 507 23,596
Other Liabilities
Long-term bank borrowing ................................. -- -- -- 40,770
Deferred income taxes .................................... 134 -- -- (568)
Other .................................................... 176 -- -- --
------- ------- --------- ---------
310 -- -- 40,202
$18,413 $11,196 $ -- $ 593,421
<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.
</FN>
</TABLE>
