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,
consolidated 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 nine-months period ended, September 30,
1999.
2. The following lists amounts expended by Cinergy Investments, CGR
and CGPI on investments during the calendar quarter ended September 30,
1999 ("Third 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 and
EWGs/FUCOs is 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 Third Quarter.
b) CGR made no investments in such subsidiaries during the
Third Quarter.
c) CGPI made no investments in such subsidiaries during the
Third Quarter.
3. The following provides information concerning the nature and
extent of services provided by Intermediate Parents during the Third
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 Third
Quarter are as follows:
Moravske Teplarny a.s. $8,100
Plzenska Energetika s.r.o. $9,000
Cinergetika U/L, a.s. $5,400
Energetika Chropyne, a.s. $1,500
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 Third Quarter are as
follows:
Copperbelt Energy Corporation PLC $125,000
4. The following provides information concerning the formation and
capitalization of any new Intermediate Parents and/or Nonutility Companies
during the Third Quarter.
During the Third Quarter, the following Intermediate Parents and/or
Nonutility Companies were formed Northeolic Pico Gallo, S.L., Cinergy
Global 3 B.V., Cinergy Global 4 B.V. 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 Third 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 Third 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 Third 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 Third Quarter, Cinergy reorganized certain of its
subsidiary companies that hold (or were formed to hold) interests in EWGs
and FUCOs.
More specifically, effective September 21, 1999, CGPI reorganized part
of its subsidiary corporate structure. Prior to the reorganization, 15
subsidiaries previously formed in the Cayman Islands were each direct
wholly-owned subsidiaries of CGPI. In order to realize potential tax
savings, effective September 21, 1999, a reorganization was effected as a
result of which Cinergy Global (Cayman) Holdings, Inc. ("Cayman Holdings")
(formerly Cinergy MPI III, Inc.) remained a direct wholly-owned subsidiary
of CGPI, while the remainder of the Cayman Island subsidiaries became
direct wholly-owned subsidiaries of Cayman Holdings.
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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: November 29, 1999
CINERGY SERVICES, INC.
By: /s/William L. Sheafer
Vice President and Treasurer
