SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of CERTIFICATE
Cinergy Corp. et al. OF
File No. 70-9015 NOTIFICATION
(Public Utility Holding Company
Act of 1935)
With reference to the transactions proposed in the
Application-Declaration on Form U-1, as amended (the "Application"), in the
above proceeding filed by Cinergy Corp. ("Cinergy") and certain of its
subsidiary companies - namely, Cinergy Services, Inc. ("Cinergy Services"),
Cinergy Investments, Inc. ("Cinergy Investments"), The Cincinnati Gas &
Electric Company ("CG&E"), PSI Energy, Inc. ("PSI"), The Union Light, Heat
and Power Company ("ULH&P"), Lawrenceburg Gas Company ("Lawrenceburg"), The
West Harrison Gas and Electric Company ("West Harrison"), Miami Power Corp.
("Miami"), Tri-State Improvement Company ("Tri-State") and KO Transmission
Company ("KO"; and, together with Cinergy and the aforementioned associate
companies, the "Applicants") - and the Commission's order dated May 30,
1997 with respect thereto (Rel. No. 35-26723), Cinergy Services, on behalf
of itself and the other Applicants, notifies the Commission that:
1. The following lists the maximum principal amount of external
short-term borrowings - i.e., bank borrowings and/or commercial paper - at
any time outstanding during the calendar quarter ended June 30, 1998
("Second Quarter 1998") for the following companies: (a)CG&E - $145
million; (b) PSI - $169.1 million; (c) ULH&P - $0; (d) Lawrenceburg - $0;
(e) West Harrison - $0; (f) Miami - $0; (g) Tri-State - $0; (h) KO - $0;
and (i) Cinergy Services - $0.
2. With respect to the operation of the Cinergy system money pool
during the Second Quarter 1998: (a) the average annual interest rate
applicable to borrowings by participating companies was 5.73%; (b) the
maximum principal amount of money pool borrowings incurred by the
respective Applicants and outstanding at any time during the Second
Quarter 1998 was as follows: (i) CG&E - $42.8 million, (ii) PSI - $102.4
million, (iii) ULH&P - $27.3 million, (iv) Lawrenceburg - $0.4 million, (v)
West Harrison - $0, (vi) Miami - $0, (vii) Tri-State - 0, (viii) KO - $0,
and (ix) Cinergy Services - $53.1 million; and (c) the maximum principal
amount of funds loaned through the money pool by the respective Applicants
and outstanding at any time during the Second Quarter 1998 was as follows:
(i) Cinergy - $14.7 million, (ii) CG&E - $111.3 million, (iii) PSI - $71.1
million, (iv) ULH&P - $1.6 million, (v) Lawrenceburg - $0, (vi) West
Harrison - $0, (vii) Miami - $0, (viii) Tri-State - $0, (ix) KO - $0, and
(x) Cinergy Services - $15.8 million.
3. At March 31, 1998, Cinergy and Cinergy Investments had $62.1
million and $10 million, respectively, in guarantees issued and
outstanding. During the Second Quarter 1998, Cinergy issued 13 guarantees
totaling $94.5 million and Cinergy Investments cancelled the guarantee it
had outstanding. In addition, Cinergy UK, Inc. had outstanding borrowings
under a bank credit facility totaling $96 million at June 30, 1998 as to
which Cinergy has obligations under a parent support agreement. Therefore,
at the end of the Second Quarter 1998, Cinergy and Cinergy Investments had
guarantees outstanding of $252.6 million and $0, respectively.
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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: August 12, 1998
CINERGY SERVICES, INC.
By: /s/ William L. Sheafer
Vice President and Treasurer
