SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of AMENDMENT TO CERTIFICATE
Cinergy Corp. et al. OF
File No. 70-8933 NOTIFICATION
(Public Utility Holding Company Act of 1935)
Cinergy Services, Inc. recently filed a certificate of notification in
the above docket, reporting certain information for transactions carried out in
the quarterly period ended September 30, 2000 ("September 30, 2000 Reporting
Certificate"), which contained an inaccuracy regarding the dollar amount of
service transactions provided by Cinergy Services, Inc., as reported in the
first sentence of Item 2, which was overstated. The following restates and
supersedes in its entirety the September 30, 2000 Reporting Certificate. As so
restated, the September 30, 2000 Reporting Certificate reads as follows:
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 (the "1997 Order"), Cinergy Services
hereby provides the following information:
1. The following summary, covering the quarterly period ended September 30,
2000, updates the business activities of Cinergy Solutions Holding Company,
Inc. (formerly Cinergy Solutions, Inc.) ("Cinergy Solutions Holdings"), a
Delaware corporation and direct, wholly-owned nonutility subsidiary of
Cinergy Investments, from the last quarterly filing in this docket.
a. Name Change; New Cinergy Solutions, Inc. As recently reported in this
docket, the legal entity named "Cinergy Solutions, Inc." recently
changed its name to "Cinergy Solutions Holding Company, Inc." to
emphasize the new focus of this company. In the future, although
certain business activities may continue to be conducted by this
company directly (in which regard see paragraphs "g" and "i" below of
this item 1), Cinergy Solutions Holdings is anticipated to act
primarily as a holding company over its various operating company
subsidiaries. In that connection, as previously reported, Cinergy
Solutions Holdings has formed a new wholly-owned subsidiary, Cinergy
Solutions, Inc. ("Cinergy Solutions"), for the purpose of conducting
certain project-related preliminary developmental activities,
principally related to cogeneration projects, formerly conducted by
Cinergy Solutions Holdings itself (i.e, prior to the name change) and
other energy-related businesses.
b. Scope of Report. This report provides information concerning Cinergy
Solutions Holdings and those subsidiaries of Cinergy Solutions
Holdings that, like Cinergy Solutions Holdings itself, may not be
considered "energy-related companies" within the meaning of rule 58
(and whose activities are therefore not separately covered in
Cinergy's quarterly reports on Form U-9C-3), namely, (i) Vestar, Inc.,
a Delaware corporation (formerly Cinergy Business Solutions, Inc.) and
its subsidiaries, including Vestar Limited (formerly Rose Technology
Group Limited), and (ii) 1388368 Ontario Inc., 3036243 Nova Scotia
Company and Cinergy Solutions Limited Partnership (the latter three
entities, collectively, the "Vestar Financing Entities"). The Vestar
Financing Entities were formed for the sole purpose of assisting in
the realization by Cinergy of certain tax benefits or other financial
efficiencies in connection with the financing of the acquisition of
Vestar, Limited. (See the chart enclosed herewith as Exhibit A showing
Cinergy Solutions Holdings and its subsidiaries as of September 30,
2000.)
c. Energy Management Services. As previously reported in this docket,
Vestar, Inc. and Vestar Limited (and their subsidiaries) are in the
business of marketing energy management services and solutions,
intended to create cost savings and improve efficiency and
productivity, to institutional, commercial and industrial customers in
the United States and Canada. In the calendar quarter ended September
30, 2000, Vestar, Inc. and Vestar, Limited continued to be actively
engaged in their North American energy management and energy
performance contracting businesses.
d. Asset Management Services.None, (i) except to the extent a part of the
energy performance contracting businesses of Vestar, Inc. and Vestar
Limited and their subsidiaries, and (ii) except to the extent
conducted by certain subsidiaries of Cinergy Solutions Holdings that
are energy-related companies within the meaning of rule 58 and with
respect to which information is reported in Cinergy's quarterly
reports on Form U-9C-3 (e.g., the various subsidiaries formed pursuant
to the joint venture with Trigen Energy Corporation devoted to the
development, ownership and/or operation of cogeneration facilities).
e. Technical/Consulting Services. In 1998 Cinergy Solutions Holdings
formed a wholly-owned subsidiary, Cinergy Customer Care, Inc., to
market utility billing services and/or utility call center services to
utility companies. However, this subsidiary never commenced active
operations and was recently dissolved.
f. QF Project Development and Ownership. See Cinergy's quarterly reports
on Form U-9C-3 for information concerning Cinergy Solutions Holdings'
joint venture with Trigen Energy Corporation, which focuses on QF
development, and the numerous project companies that have been formed
to serve customers acquired pursuant to these joint venture
activities. In the future subsidiaries of Cinergy Solutions Holdings
are anticipated to develop cogeneration projects outside of the joint
venture with Trigen.
g. Consumer Services. Cinergy Solutions Holdings is offering various
products and services to Cinergy's residential utility customers,
including an underground utility line warranty service.
h. Customer Financing. Effective year-end 1999, Cinergy Solutions
Holdings discontinued marketing its "Quick Credit" financial services
program previously described in this file. Cinergy Solutions Holdings
is not otherwise providing any stand-alone customer financing, either
directly or through any of its subsidiaries.
i. Third-Party Alliances. See Cinergy's quarterly reports on Form U-9C-3
for information concerning Cinergy Solutions Holdings' joint venture
with Trigen Energy Corporation. In addition, Cinergy Solutions
Holdings recently entered into a marketing agreement with a
nonaffiliate concerning microturbines.
2. During the calendar quarter ended September 30, 2000,Cinergy Services
provided various services (including accounting; finance; engineering;
executive; legal; and human resources services) to Cinergy Solutions
Holdings and its subsidiaries (including energy-related companies under
rule 58) for a total cost of approximately $2,900,000. During that same
period, The Cincinnati Gas & Electric Company and PSI Energy, Inc.
provided engineering and construction services to Cinergy Solutions
Holdings and its subsidiaries (including energy-related companies under
rule 58) totaling approximately $326,000 and $87,000, respectively.
3. During the calendar quarter ended September 30, 2000, (a) Cinergy had
guarantees outstanding covering outstanding debt or other obligations
of Cinergy Solutions Holdings and its subsidiaries totaling
approximately $97 million; and (b) Cinergy Investments made net
open-account advances to Cinergy Solutions Holdings, for the benefit of
Cinergy Solutions Holdings and all of its subsidiaries (including
energy-related companies under rule 58), totaling approximately
$16,754,000 at annual interest rates ranging from 6.57%to 6.69%.
4. During the calendar quarter ended September 30, 2000, neither Cinergy
Solutions Holdings nor any subsidiary thereof entered into any
long-term contract by which any of such entities performs long-term
operations, load control or network control of any electric generation,
transmission or distribution facility, other than in respect of
qualifying cogeneration facilities or customer-owned facilities in
situations where the provision of such services does not render Cinergy
Solutions Holdings or any such subsidiary a public utility under state
law.
5. Consolidated financial statements for Cinergy Solutions Holdings dated
September 30, 2000 are enclosed herewith under a claim for confidential
treatment pursuant to rule 104(b) under the Act.
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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 20, 2000
CINERGY SERVICES, INC.
By: /s/Wendy L. Aumiller
Assistant Treasurer
