SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of
Cinergy Corp. et al.
File No. 70-8933
(Public Utility Holding Company
Act of 1935)<PAGE>
CERTIFICATE
OF
NOTIFICATION<PAGE>
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 quarterly period ended March 31,
1998 ("First Quarter 1998"), 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. Cinergy Solutions continued
marketing on a pilot basis its "On-Site Energy Manager" program, under
which large industrial customers may 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.
b. Asset Management Services. 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. Finally, in the First
Quarter 1998, Cinergy Solutions also began marketing transmission
and distribution engineering, procurement and construction
services to municipals, cooperatives, universities and certain
governmental entities (collectively, "T&D Services"). Specific
T&D Services include construction of transmission and
distribution lines, procurement of materials, construction of
substations, complete turnkey projects, and project management.
c. Consulting Services. Nothing to report, except to the extent
included within the other activities described herein.
d. QF 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. (collectively,
"Cinergy-Trigen Joint Venture Companies").
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. See Cinergy's Quarterly Reports on Form
U-9C-3 for information with respect to the Cinergy-Trigen Joint
Venture Companies.
2. During the First Quarter 1998, Cinergy Services provided accounting,
executive, legal, information systems, marketing and customer
relations, and engineering and construction services to Cinergy
Solutions for a total cost of approximately $1,551,000. During that
same period, The Cincinnati Gas & Electric Company and PSI Energy,
Inc. provided engineering and construction and project management
services to Cinergy Solutions totaling approximately $30,000 and
$5,000, respectively.
3. During the First Quarter 1998, neither Cinergy nor Cinergy Investments
guaranteed any financial obligations of Cinergy Solutions. During the
First Quarter 1998, Cinergy Investments made net open-account advances
to Cinergy Solutions totaling approximately $1,300,000 at annual
interest rates ranging from 6.0% to 6.15%.
4. During the First Quarter 1998, Cinergy Solutions did not enter into
any long-term contract by which Cinergy Solutions performs long-term
operations, load control or network control of any electric
generation, transmission or distribution facility.
5. Filed herewith under a request for confidential treatment pursuant to
rule 104 under the Act are unaudited financial statements for Cinergy
Solutions dated March 31, 1998.<PAGE>
<PAGE>
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: May 14, 1998
CINERGY SERVICES, INC.
By: /s/ William L. Sheafer
Vice President and Treasurer
