SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 10, 1999
Cinergy Corp.
(Exact name of registrant as specified in its charter)
Delaware 1-11377 31-1385023
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
139 East Fourth Street, Cincinnati, OH 45202
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (513) 287-2644
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ITEM 5. OTHER EVENTS.
Reference is made to the press release of Cinergy Corp., dated August 10, 1999,
announcing estimated earnings impacts of extreme weather during the third
quarter 1999, which is attached hereto as Exhibit 99 and incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
The following exhibit is filed herewith:
Exhibit
Designation Nature of Exhibit
99 Press release of Cinergy Corp., dated August 10, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Cinergy Corp.
(Registrant)
Date: August 10, 1999 By: /s/Madeleine W. Ludlow
--------------------------------------
Madeleine W. Ludlow
Vice President & Chief Finance Officer
(Signature)
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Exhibit 99
News contact: Steve Brash 513-287-2226 (w) 513-231-6895 (h)
Angeline Protogere 317-838-1338(w) 317-298-3090 (h)
Investor contact: Steve Schrader 513-287-1083
Website: www.cinergy.com
FOR IMMEDIATE RELEASE - August 10, 1999
CINERGY ESTIMATES EARNINGS IMPACT OF EXTREME WEATHER
CINCINNATI--Cinergy Corp. (NYSE:CIN) expects a $.36 per share reduction in July
earnings related to the extreme weather conditions late in the month. While
increased sales from retail operations contributed $.10 per share, or $16
million after tax, cash losses reflecting costs to serve wholesale power
contracts were $.36 per share, or $57 million after-tax, and anticipated
liquidated damage claims were $.10 per share, or $16 million after tax.
The extreme weather conditions required the purchase of power needed to
supplement generation to meet record wholesale and retail customer demand. The
anticipated liquidated damages are related to supply curtailments to eight power
marketers for four-to-six hours July 30.
"We are committed to meeting all of our obligations in the market all of the
time," said James E. Rogers, Cinergy vice chairman, president and chief
executive officer. "In July, we faced extraordinary circumstances including
record heat, record peak demands and major transmission constraints into the
region. We made the decision to meet human needs and avoid the severe scenario
of rotating blackouts that others experienced during the heat wave. We chose to
maintain service to our customers in Ohio, Indiana and Kentucky as well as our
wholesale obligations such as municipals, while curtailing service to some power
trading customers."
(more)
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Page 2. Cinergy estimates earnings impact of extreme weather
Conditions in Cinergy's service area included record-setting temperatures and
extraordinary levels of demand. Preliminary figures indicate electric demand in
the Cinergy system's tri-state service territory peaked at 10,858 megawatts July
22. On July 30 demand peaked at an estimated 10,811 megawatts. An aggressive
call for voluntary conservation, including 2,600 contacts with large-volume
power users as well as implementation of standard industrial interruptible
contracts, reduced the potential peak by more than 600 megawatts. If not for
voluntary conservation, this summer's peak on the Cinergy system would have
exceeded last summer's record peak by approximately 1,000 megawatts.
Additionally the company experienced regional transmission constraints which
prevented it from receiving significant amounts of prescheduled power and
further limited hourly purchases from the north, east and west for both service
territory and off-system obligations.
"In an embryonic, competitive market, the risks and costs of meeting
unprecedented peaks are difficult to predict," said Rogers. "Volatility related
to serving peak obligations should decline over time as contracts expire,
customer choice is implemented, new generation is constructed in the Midwest and
the market matures. Clearly our mission now is to aggressively pursue a
combination of alternatives to mitigate the risk of meeting our obligations
during times of 'super peaks' like we experienced in July."
This release should not be construed as imposing any duty on Cinergy to update
the information set forth above.
