File No. 70-8867
SECURITIES AND EXCHANGE COMMISSION
450 FIFTH STREET, N.W.
WASHINGTON, D.C. 20549
__________________________________________
POST-EFFECTIVE AMENDMENT NO. 3
TO
FORM U-1 APPLICATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
____________________________________________
Cinergy Corp.
139 East Fourth Street
Cincinnati, Ohio 45202
(Name of company filing this statement
and address of principal executive offices)
Cinergy Corp.
(Name of top registered holding company parent)
William L. Sheafer
Vice President and Treasurer
Cinergy Corp.
(address above)
(Name and address of agent of service)
Applicant requests that the Commission direct all notices,
orders and communications in this matter to:
George Dwight II
Senior Counsel
Cinergy Corp.
(address above)
513-287-2643
513-287-3810 (fax)
[email protected]
This document is being filed as Post Effective Amendment No. 3 to
include the Exhibits to Post-Effective Amendment No. 2 which were not
submitted as part of the filing. The following Exhibits should be included
with the Post-Effective Amendment No. 2 filing:
F-1 Preliminary opinion of counsel
FS-1 Cinergy Pro Forma Consolidated Financial Statements, dated
June 30, 1998
FS-2 Cinergy Pro Forma Financial Statements, dated June 30, 1998
FS-3 Cinergy Consolidated Financial Data Schedule
FS-4 Cinergy Financial Data Schedule
<PAGE>
SIGNATURE
Pursuant to the requirements of the Act, the undersigned company has
duly caused this statement to be signed on its behalf by the undersigned
thereunto duly authorized.
Dated: September 22, 1998
CINERGY CORP.
By: /s/William L. Sheafer
Vice President and Treasurer
EXHIBIT F-1
September 10, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Cinergy Corp./ File No. 70-8867
Ladies and Gentlemen:
I am Associate General Counsel of Cinergy Corp. ("Cinergy"), a
Delaware corporation and registered holding company under the Public
Utility Holding Company Act of 1935, as amended (the "Act") and am
furnishing this opinion as an exhibit to Cinergy's Application on Form U-1
in the above file, as amended by Post-Effective Amendments Nos. 1 and 2
(the latter being filed concurrently herewith) (as so amended, and as it
may be further amended, the "Application").
In the Application, Cinergy requests authority to make an
additional investment in the Nth Power Technologies Fund I, L.P. (the
"Fund"), and thereby to acquire an additional limited partnership interest
therein, all as more particularly described in the Application. In
connection with this opinion, I have reviewed the Application and such
agreements, instruments and other materials as I have deemed necessary or
appropriate in order to render this opinion.
I am a member of the Bar of the State of Ohio and do not purport to
be an expert on the laws of any other jurisdiction. I have examined the
Delaware General Corporation Law ("DGCL") to the extent necessary to
express the opinions set forth herein. The opinions expressed below are
limited solely to matters governed by the laws of the State of Ohio and the
DGCL.
Based upon and subject to the foregoing, and assuming that the
proposed transactions are carried out in accordance with the Application
and the Commission's order to be issued with respect thereto, together with
any requisite corporate authorizations applicable to Cinergy's
participation, I am of the opinion that:
(a) All state laws applicable to Cinergy's participation in the
proposed transactions will have been complied with.
(b) Cinergy will legally acquire the additional limited partnership
interest in the Fund to be acquired by it.
(c) The consummation of the proposed transactions will not violate
the legal rights of the holders of any securities issued by
Cinergy or any associate company thereof.
I hereby consent to the use of this opinion in connection with the
Application.
Very truly yours,
/s/ Jerome A. Vennemann
Associate General Counsel
FINANCIAL STATEMENTS
TWELVE MONTHS ENDED JUNE 30, 1998
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM U-1
CINERGY CORP. CONSOLIDATED
(Unaudited)
Pages 1 through 6
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
CONSOLIDATED BALANCE SHEET
AT JUNE 30, 1998
(unaudited)
(dollars in thousands)
ASSETS
<S> <C> <C> <C>
Pro Forma
Actual Adjustments Pro Forma
Utility Plant - Original Cost
In service
Electric $9,048,447 $ - $9,048,447
Gas 759,774 - 759,774
Common 186,236 - 186,236
---------- ------ ----------
9,994,457 - 9,994,457
Accumulated depreciation 3,922,498 - 3,922,498
---------- ------ ----------
6,071,959 - 6,071,959
Construction work in progress 219,154 - 219,154
---------- ------ ----------
Total utility plant 6,291,113 - 6,291,113
Current Assets
Cash and temporary cash investments 86,934 - 86,934
Restricted deposits 1,507 - 1,507
Notes receivable 78 - 78
Accounts receivable less accumulated
provision for doubtful accounts
of $14,520 528,923 - 528,923
Materials, supplies, and fuel
- at average cost
Fuel for use in electric production 72,272 - 72,272
Gas stored for current use 29,282 - 29,282
Other materials and supplies 70,475 - 70,475
Prepayments and other 68,126 - 68,126
---------- ------ ----------
857,597 - 857,597
Other Assets
Regulatory assets
Amounts due from customers
- income taxes 398,237 - 398,237
Post-in-service carrying costs
and deferred operating expenses 174,557 - 174,557
Coal contract buyout costs 112,936 - 112,936
Deferred merger costs 87,684 - 87,684
Deferred demand-side management costs 91,793 - 91,793
Phase-in deferred return and depreciation 82,232 - 82,232
Unamortized costs of reacquiring debt 64,443 - 64,443
Other 44,241 - 44,241
Investments in unconsolidated subsidiaries 589,724 - 589,724
Other 385,746 3,303 389,049
---------- ------ ----------
2,031,593 3,303 2,034,896
$9,180,303 $3,303 $9,183,606
Page 2 of 6
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
AT JUNE 30, 1998
(unaudited)
(dollars in thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
Pro Forma
Actual Adjustments Pro Forma
Common Stock Equity
Common stock - $.01 par value;
authorized shares - 600,000,000;
outstanding shares - 158,535,278 $ 1,585 $ - $ 1,585
Paid-in capital 1,599,435 - 1,599,435
Retained earnings 905,556 (140) 905,416
Accumulated other comprehensive income (3,330) - (3,330)
---------- ------ ----------
Total common stock equity 2,503,246 (140) 2,503,106
Cumulative Preferred Stock of Subsidiaries
Not subject to mandatory redemption 92,688 - 92,688
Long-term Debt 2,192,975 - 2,192,975
---------- ------ ----------
Total capitalization 4,788,909 (140) 4,788,769
Current Liabilities
Long-term debt due within one year 251,569 - 251,569
Notes payable and other short-term
obligations 1,120,559 3,303 1,123,862
Accounts payable 655,241 - 655,241
Accrued taxes 187,197 (75) 187,122
Accrued interest 35,420 215 35,635
Other 88,405 - 88,405
---------- ------ ----------
2,338,391 3,443 2,341,834
Other Liabilities
Deferred income taxes 1,209,293 - 1,209,293
Unamortized investment tax credits 161,464 - 161,464
Accrued pension and other
postretirement benefit costs 315,348 - 315,348
Other 366,898 - 366,898
---------- ------ ----------
2,053,003 - 2,053,003
$9,180,303 $3,303 $9,183,606
</TABLE>
Page 3 of 6
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
CONSOLIDATED STATEMENT OF INCOME
TWELVE MONTHS ENDED
JUNE 30, 1998
(unaudited)
(in thousands, except per share amounts)
<S> <C> <C> <C>
Pro Forma
Actual Adjustments Pro Forma
Operating Revenues
Electric $4,433,854 $ - $4,433,854
Gas 427,264 - 427,264
---------- ----- ----------
4,861,118 - 4,861,118
Operating Expenses
Fuel used in electric production 719,153 - 719,153
Gas purchased 224,643 - 224,643
Purchased and exchanged power 1,775,207 - 1,775,207
Other operation 716,203 - 716,203
Maintenance 174,095 - 174,095
Depreciation 292,445 - 292,445
Amortization of phase-in deferrals 17,821 - 17,821
Amortization of post-in-service
deferred operating expenses - net 4,362 - 4,362
Income taxes 204,975 - 204,975
Taxes other than income taxes 266,617 - 266,617
---------- ----- ----------
4,395,521 - 4,395,521
Operating Income 465,597 - 465,597
Other Income and Expenses - Net
Allowance for equity funds used
during construction (141) - (141)
Phase-in deferred return 7,626 - 7,626
Equity in earnings of unconsolidated
subsidiaries 43,283 - 43,283
Income taxes 57,623 75 57,698
Other - net (52,510) - (52,510)
---------- ----- ----------
55,881 75 55,956
Income Before Interest and Other Charges 521,478 75 521,553
Interest and Other Charges
Interest on long-term debt 175,113 - 175,113
Other interest 69,489 215 69,704
Allowance for borrowed funds
used during construction (6,176) - (6,176)
Preferred dividend requirements
of subsidiaries 9,882 - 9,882
---------- ----- ----------
248,308 215 248,523
Net Income Before Extraordinary Item $ 273,170 (140) $ 273,030
Extraordinary Item - Equity Share of
Windfall Profits Tax (Less
Applicable Income Taxes of $0) (109,400) - (109,400)
---------- ----- ----------
Net Income $ 163,770 $ (140) $ 163,630
Average Common Shares Outstanding 157,790 - 157,790
Earnings Per Common Share
Net income before extraordinary item $ 1.73 - $ 1.73
Extraordinary item ( .69) - ( .69)
Net income $ 1.04 - $ 1.04
Earnings Per Common Share - Assuming Dilution
Net income before extraordinary item $ 1.72 - $ 1.72
Extraordinary item ( .69) - (.69)
Net income $ 1.03 - $ 1.03
Dividends Declared Per Common Share $ 1.80 - $ 1.80
</TABLE>
Page 4 of 6
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
CONSOLIDATED STATEMENT OF CHANGES IN COMMON STOCK EQUITY
(dollars in thousands)
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Accumulated
Other Total Total
Common Paid-in Retained Comprehensive Comprehensive Common Stock
Stock Capital Earnings Income Income Equity
Twelve Months Ended June 30, 1998
Balance July 1, 1997 $1,577 $1,570,533 $1,021,210 $(1,973) $2,591,347
Comprehensive income
Net income 163,770 $163,770 163,770
Other comprehensive income,
net of tax
Foreign currency translation
adjustment (224) (224)
Minimum pension liability
adjustment (1,133) (1,133)
--------
Other comprehensive income
total (1,357) (1,357)
--------
Comprehensive income total $162,413
Issuance of 856,149 shares of
common stock - net 8 28,859 28,867
Treasury shares purchased (2) (5,406) (5,408)
Treasury shares reissued 2 5,748 5,750
Dividends on common stock (283,956) (283,956)
Other (299) 4,532 4,233
------ ---------- ---------- ------- ----------
Actual Balance June 30, 1998 $1,585 $1,599,435 $ 905,556 $(3,330) $2,503,246
Pro Forma Adjustment - - (140) - (140)
------ ---------- ---------- ------- ----------
Pro Forma Balance June 30, 1998 $1,585 $1,599,435 $ 905,416 $(3,330) $2,503,106
</TABLE>
Page 5 of 6
<PAGE>
CINERGY CORP.
Pro Forma Consolidated Journal Entries to Give Effect to
Borrowing of $3,303,000 and Subsequent Investment by Cinergy Corp. of $3,303,000
Entry No. 1
Cash and temporary cash investments $3,303,000
Notes payable and other short-term obligations $3,303,000
To record issuance of $3,303,000 of short-term notes payable.
Entry No. 2
Other interest $ 214,695
Accrued interest $ 214,695
To record interest on $3,303,000 of notes payable at 6.5% annum.
Entry No. 3
Accrued taxes $ 75,143
Income taxes $ 75,143
To record the reduction in income taxes due to increased interest expense on
notes payable. ($214,695 at an assumed tax rate of 35%)
Entry No. 4
Other - Other Assets $3,303,000
Cash and temporary cash investments $3,303,000
To record investment in Nth Power Technologies Fund.
Page 6 of 6
FINANCIAL STATEMENTS
TWELVE MONTHS ENDED JUNE 30, 1998
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM U-1
CINERGY CORP.
(Unaudited)
Pages 1 through 6
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
BALANCE SHEET
AT JUNE 30, 1998
(unaudited)
(dollars in thousands)
ASSETS
<S> <C> <C> <C>
Pro Forma
Actual Adjustments Pro Forma
Current Assets
Cash and temporary cash investments $ 7,897 $ - $ 7,897
Notes receivable from affiliated companies 43 - 43
Accounts receivable - net 310 - 310
Accounts receivable from affiliated companies 32,389 - 32,389
Taxes receivable 5,404 75 5,479
Prepayments and other 3,059 3,059
---------- ----- ----------
49,102 75 49,177
Other Assets
Investments in consolidated subsidiaries 3,163,633 - 3,163,633
Investments in unconsolidated subsidiaries (6,853) - (6,853)
Other 6,568 3,303 9,871
---------- ------ ----------
3,163,348 3,303 3,166,651
$3,212,450 $3,378 $3,215,828
</TABLE>
Page 2 of 6
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
BALANCE SHEET
AT JUNE 30, 1998
(unaudited)
(dollars in thousands)
CAPITALIZATION AND LIABILITIES
<S> <C> <C> <C>
Pro Forma
Actual Adjustments Pro Forma
Common Stock Equity
Common stock - $.01 par value; authorized
shares - 600,000,000; outstanding shares -
158,535,278 at June 30, 1998 $ 1,585 $ - $ 1,585
Paid-in capital 1,599,435 - 1,599,435
Retained earnings 905,556 (140) 905,416
Accumulated other comprehensive income (3,330) - (3,330)
---------- ------ ----------
Total common stock equity 2,503,246 (140) 2,503,106
Current Liabilities
Notes payable 698,500 3,303 701,803
Accounts payable 1,113 - 1,113
Accounts payable to affiliated companies 9,591 - 9,591
Other -___ 215 215
---------- ------ ----------
709,204 3,518 712,722
$3,212,450 $3,378 $3,215,828
</TABLE>
Page 3 of 6
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
STATEMENT OF INCOME
TWELVE MONTHS ENDED
JUNE 30, 1998
(unaudited)
(dollars in thousands)
<S> <C> <C> <C>
Pro Forma
Actual Adjustments Pro Forma
Other Income and Expenses - Net
Equity in earnings of consolidated
subsidiaries $205,622 $ - $205,622
Equity in earnings of unconsolidated
subsidiaries (2,913) - (2,913)
Income taxes 7,491 75 7,566
Other - net (12,054) - (12,054)
-------- ----- --------
198,146 75 198,221
Income Before Interest 198,146 75 198,221
Interest 34,376 215 34,591
-------- ----- --------
Net Income $163,770 $(140) $163,630
</TABLE>
Page 4 of 6
<PAGE>
<TABLE>
<CAPTION>
CINERGY CORP.
STATEMENT OF CHANGES IN COMMON STOCK EQUITY
(dollars in thousands)
(unaudited)
<S> <C> <C> <C> <C> <C> <C>
Accumulated
Other Total Total
Common Paid-in Retained Comprehensive Comprehensive Common Stock
Stock Capital Earnings Income Income Equity
Twelve Months Ended June 30, 1998
Balance July 1, 1997 $1,577 $1,570,533 $1,021,210 $(1,973) $2,591,347
Comprehensive income
Net income 163,770 $163,770 163,770
Other comprehensive income,
net of tax
Foreign currency translation
adjustment (224) (224)
Minimum pension liability
adjustment (1,133) (1,133)
--------
Other comprehensive income
total (1,357) (1,357)
--------
Comprehensive income total $162,413
Issuance of 856,149 shares of
common stock - net 8 28,859 28,867
Treasury shares purchased (2) (5,406) (5,408)
Treasury shares reissued 2 5,748 5,750
Dividends on common stock (283,956) (283,956)
Other (299) 4,532 4,233
------ ---------- ---------- ------- ----------
Actual Balance June 30, 1998 $1,585 $1,599,435 $ 905,556 $(3,330) $2,503,246
Pro Forma Adjustment - - (140) - (140)
------ ---------- ---------- ------- ----------
Pro Forma Balance June 30, 1998 $1,585 $1,599,435 $ 905,416 $(3,330) $2,503,106
</TABLE>
Page 5 of 6
<PAGE>
CINERGY CORP.
Pro Forma Consolidated Journal Entries to Give Effect to
Borrowing of $3,303,000 and Subsequent Investment by Cinergy Corp. of $3,303,000
Entry No. 1
Cash and temporary cash investments $3,303,000
Notes payable $3,303,000
To record issuance of $3,303,000 of short-term notes payable.
Entry No. 2
Interest $ 214,695
Other - current liabilities $ 214,695
To record interest on $3,303,000 of notes payable at 6.5% annum.
Entry No. 3
Taxes receivable $ 75,143
Income taxes $ 75,143
To record the reduction in income taxes due to increased interest expense on
notes payable. ($214,695 at an assumed tax rate of 35%)
Entry No. 4
Other - Other Assets $3,303,000
Cash and temporary cash investments $3,303,000
To record investment in Nth Power Technologies Fund.
Page 6 of 6
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS, CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED
STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1998
<PERIOD-START> JUL-01-1997 JUL-01-1997
<PERIOD-END> JUN-30-1998 JUN-30-1998
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 6,291,113 6,291,113
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 857,597 857,597
<TOTAL-DEFERRED-CHARGES> 1,645,847 1,645,847
<OTHER-ASSETS> 385,746 389,049
<TOTAL-ASSETS> 9,180,303 9,183,606
<COMMON> 1,585 1,585
<CAPITAL-SURPLUS-PAID-IN> 1,599,435 1,599,435
<RETAINED-EARNINGS> 902,226 902,086
<TOTAL-COMMON-STOCKHOLDERS-EQ> 2,503,246 2,503,106
0 0
92,688 92,688
<LONG-TERM-DEBT-NET> 2,192,975 2,192,975
<SHORT-TERM-NOTES> 1,120,559 1,123,862
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 251,569 251,569
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 3,019,266 3,019,406
<TOT-CAPITALIZATION-AND-LIAB> 9,180,303 9,183,606
<GROSS-OPERATING-REVENUE> 4,861,118 4,861,118
<INCOME-TAX-EXPENSE> 204,975 204,975
<OTHER-OPERATING-EXPENSES> 4,190,546 4,190,546
<TOTAL-OPERATING-EXPENSES> 4,395,521 4,395,521
<OPERATING-INCOME-LOSS> 465,597 465,597
<OTHER-INCOME-NET> 55,881 55,956
<INCOME-BEFORE-INTEREST-EXPEN> 521,478 521,553
<TOTAL-INTEREST-EXPENSE> 248,308 248,523
<NET-INCOME> 163,770 163,630
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 163,770 163,630
<COMMON-STOCK-DIVIDENDS> 283,956 283,956
<TOTAL-INTEREST-ON-BONDS> 175,113 175,113
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 1.04 1.04
<EPS-DILUTED> 1.03 1.03
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS, CONSOLIDATED STATEMENTS OF INCOME AND CONSOLIDATED
STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1998
<PERIOD-START> JUL-01-1997 JUL-01-1997
<PERIOD-END> JUN-30-1998 JUN-30-1998
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 49,102 49,177
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 3,163,348 3,166,651
<TOTAL-ASSETS> 3,212,450 3,215,828
<COMMON> 1,585 1,585
<CAPITAL-SURPLUS-PAID-IN> 1,599,435 1,599,435
<RETAINED-EARNINGS> 902,226 902,086
<TOTAL-COMMON-STOCKHOLDERS-EQ> 2,503,246 2,503,106
0 0
0 0
<LONG-TERM-DEBT-NET> 0 0
<SHORT-TERM-NOTES> 698,500 701,803
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 10,704 10,919
<TOT-CAPITALIZATION-AND-LIAB> 3,212,450 3,215,828
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 0 0
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 0 0
<OTHER-INCOME-NET> 198,146 198,221
<INCOME-BEFORE-INTEREST-EXPEN> 198,146 198,221
<TOTAL-INTEREST-EXPENSE> 34,376 34,591
<NET-INCOME> 163,770 163,630
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 163,770 163,630
<COMMON-STOCK-DIVIDENDS> 283,956 283,956
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0.00 0.00
<EPS-DILUTED> 0.00 0.00
</TABLE>