SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of CERTIFICATE
Cinergy Corp. et al. OF
File No. 70-8933 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 docket filed
by Cinergy Corp. ("Cinergy"), a Delaware corporation and 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 December
31, 1998 ("Fourth 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 file:
a. Energy Management Services. Cinergy Solutions did not market
energy management services to any prospective new customers in
the Fourth Quarter 1998, but did continue to provide EMS services
to one customer under an existing contract whose term expires in
approximately two years.
b. Asset Management Services. As previously reported, Cinergy
Solutions no longer directly markets large and small asset
management services. Cinergy Business Solutions ("CBS"), a
wholly-owned nonutility subsidiary of Cinergy Solutions, was
formed in 1998 to market similar utility asset management
services. (For more information on CBS, see Cinergy's quarterly
reports on Form U-9C-3). In the Fourth Quarter 1998, Cinergy
Solutions continued marketing to municipals, cooperatives,
universities, governmental institutions and similar entities
various transmission and distribution engineering, procurement
and construction services, including construction of transmission
and distribution lines, procurement of materials, construction of
substations, complete turnkey projects, and project management.
c. Technical/Consulting Services. In 1998 Cinergy Solutions formed
a new, wholly-owned subsidiary, Cinergy Customer Care, Inc., to
market utility billing services and/or utility call center
services to utility companies. This subsidiary remained inactive
through the Fourth Quarter 1998.
d. QF Project Development and Ownership. See Cinergy's quarterly
reports on Form U-9C-3 for information concerning Cinergy
Solutions' joint venture with Trigen Energy Corporation.
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 concerning Cinergy Solutions' joint
venture with Trigen Energy Corporation.
2. During the Fourth 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 $1,886,000. During that
same period, The Cincinnati Gas & Electric Company, PSI Energy, Inc.
and The Union Light, Heat and Power Company provided engineering and
construction and project management services to Cinergy Solutions
totaling approximately $43,000, $20,000 and $67,000, respectively.
3. During the Fourth Quarter 1998, (a) Cinergy issued no guarantees of
financial or performance obligations of Cinergy Solutions, and (b)
Cinergy Investments made net open-account advances to Cinergy
Solutions totaling approximately $5,040,000 at annual interest rates
ranging from 5.42% to 5.55%.
4. During the Fourth Quarter 1998, Cinergy Solutions did 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. Financial statements for Cinergy Solutions dated December 31, 1998 are
being filed as an exhibit to Cinergy's Annual Report on Form U5S for
the year ended December 31, 1998 and are hereby incorporated by
reference.
<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: February 18, 1999
CINERGY SERVICES, INC.
By: /s/William L. Sheafer
Vice President and Treasurer
