SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of CERTIFICATE
Cinergy Corp., et al. OF
File No. 70-9319 NOTIFICATION
(Public Utility Holding Company Act of 1935)
Pursuant to the Commission's order dated March 1, 1999 (HCAR No.
26984) (the "Order") granting and permitting to become effective the
application-declaration as amended in the above docket filed by Cinergy
Corp. ("Cinergy"), a Delaware corporation and registered holding company
under the Public Utility Holding Company Act of 1935 (the "Act") and
Cinergy Investments, Inc. ("Cinergy Investments"), a Delaware corporation
and direct, wholly-owned nonutility subsidiary of Cinergy, Cinergy provides
the following information (any capitalized terms used but not defined
herein having the respective meanings assigned thereto in the Order):
1. Cinergy is concurrently filing with the Commission under a request for
confidential treatment pursuant to rule 104(b) under the Act, balance
sheets and income statements for Cinergy Investments, Cinergy Global
Resources, Inc. ("CGR"), a Delaware corporation and direct, wholly-owned
subsidiary of Cinergy, and Cinergy Global Power, Inc. ("CGPI"), a Delaware
corporation and direct, wholly-owned subsidiary of CGR, each dated as of,
or for the six-months period ended, June 30, 1999.
2. The following lists amounts expended by Cinergy Investments, CGR and
CGPI on investments during the calendar quarter ended June 30, 1999
("Second Quarter") in their direct subsidiaries that are not energy-related
companies as defined in rule 58 ("rule 58 companies"), exempt wholesale
generators ("EWGs") or foreign utility companies ("FUCOs"; information with
respect to Cinergy's investments in rule 58 companies, EWGs and FUCOs being
provided in Cinergy's quarterly reports on Form U-9C-3 and quarterly
certificates filed in File No. 70-9011, respectively).
a) Cinergy Investments made no investments in such subsidiaries during
the Second Quarter.
b) CGR made no investments in such subsidiaries during the Second
Quarter.
c) CGPI made no investments in such subsidiaries during the Second
Quarter.
3. The following provides information concerning the nature and extent of
services provided by Intermediate Parents during the Second Quarter,
identifying the customer company, the service and the charge, and the
transfer pricing therefor (i.e., whether the charge was computed at cost,
market or pursuant to another method).
a) Cinergy Global Resources, a.s., a wholly-owned subsidiary of CGR and
CGPI organized under the laws of the Czech Republic, provided the
following services to certain associate project companies located in
the Czech Republic, each of which is a FUCO (identified below):
i. Intermediation with financial institutions to obtain financing by
project companies;
ii. Currency and interest rate risk management;
iii. Consulting services in the area of financial and operational
management of project companies; and
iv. Re-engineering studies and implementation.
The fees charged for these services are a flat monthly fee which was
established by the historical and anticipated hours of work which have been
or will be provided by Cinergy Global Resources, a.s. personnel to project
companies including the estimated related business expenses incurred in
providing these services.
The project companies served and the fees charged for the Second Quarter
are as follows:
Moravske Teplarny a.s. $7,500
Plzenska Energetika s.r.o. $8,550
Cinergetika U/L, a.s. $0
Energetika Chropyne, a.s. $0
b) Cinergy Global Power Services Limited ("CGPS"), a wholly-owned
subsidiary of CGR and CGPI organized under the laws of the United Kingdom,
provided the following services to the associate project company identified
below, a Zambian FUCO:
i. Consulting services in the area of management of project
companies and ongoing business development; and
ii. Re-engineering and restructuring services.
The fee charged for these services is a flat quarterly fee which was
established according to a management agreement between CGPS and its
partners in the project.
The project company served and the fee charged for the Second Quarter are
as follows:
Copperbelt Energy Corporation PLC $187,500
4. The following provides information concerning the formation and
capitalization of any new Intermediate Parents and/or Nonutility Companies
during the Second Quarter.
During the Second Quarter, the following Intermediate Parents and/or
Nonutility Companies were formed Cinergy Global Foote Creek, Inc., a
Delaware corporation; Cinergy Global 3 B.V., a Dutch corporation; and
Cinergy Global 4 B.V., a Dutch corporation. Each of these entities is an
indirect wholly-owned subsidiary of both CGR and CGPI; was nominally
capitalized; and was established to hold direct or indirect ownership
interests in EWGs or FUCOs.
5. The following provides information concerning any loans made by
Cinergy, Intermediate Parents or Nonutility Companies to associate
Intermediate Parents or Nonutility Companies during the Second Quarter that
are not exempt under rule 52(b) and the issuance of any securities that are
not exempt under rule 52(b) by Intermediate Parents or Nonutility Companies
during the Second Quarter.
No such loans were made or securities issued.
6. The following provides information concerning the completion of any
consolidation or reorganization of Cinergy's ownership interest in
Intermediate Parents and/or Nonutility Companies during the Second Quarter,
including the identity of the companies involved and their lines of
business and corporate structure both before and after the consolidation or
reorganization.
During the Second Quarter, Cinergy reorganized certain of its subsidiary
companies that hold (or were formed to hold) interests in EWGs and FUCOs.
More specifically, effective May 15, 1999, CGPI reorganized part of its
subsidiary corporate structure. Prior to the reorganization, Cinergy
Global Holdings, Inc., a Delaware corporation, and Cinergy Holdings B.V., a
Dutch corporation (together with its subsidiaries), were each direct
wholly-owned subsidiaries of CGPI. In order to realize tax savings,
effective May 15, 1999 a reorganization was effected as a result of which
Cinergy Holdings B.V. (and its subsidiaries) became a direct wholly-owned
subsidiary of Cinergy Global Holdings, Inc. The latter remains a direct
wholly-owned subsidiary of CGPI.
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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: August 31, 1999
CINERGY SERVICES, INC.
By: /s/William L. Sheafer
Vice President and Treasurer
