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. Financial statement information for the 12 months ended December
31, 1999 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 will be provided as part of Cinergy's Annual
Report on Form U-5S.
2. The following lists amounts expended by Cinergy Investments, CGR
and CGPI on investments during the calendar quarter ended December 31, 1999
("Fourth Quarter 1999") 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 $15 million in investments in such
subsidiaries during the Fourth Quarter 1999.
b) CGR made no investments in such subsidiaries during the Fourth
Quarter 1999.
c) CGPI made no investments in such subsidiaries during the Fourth
Quarter 1999.
3. The following provides information concerning the nature and extent of
services provided by Intermediate Parents during the Fourth Quarter 1999,
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 Fourth Quarter
1999 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 Fourth 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 fourth Quarter 1999.
During the Fourth Quarter 1999, the following Intermediate Parents and/or
Nonutility Companies were formed or acquired (entities formed or acquired
in connection with the acquisition of Rose Technology are omitted; for
information with respect to such entities, see the certificate for the
Fourth Quarter 1999 filed in File No. 70-8933) Anglian Straw Limited,
Cinergy Global Foote Creek II, Inc., Cinergy Global Power Africa (Pty)
Limited, Cinergy Telecommunications Networks Holdings, Inc., Desarrollos
Eolico El Aguila, S.A., Escambeo, S.L., Ely Power Limited, Foote Creek II,
LLC, Sinergia Aragonesa, S.L., St. Paul Cogeneration LLC, Trigen-Cinergy
Solutions of Danville LLC, Trigen-Cinergy Solutions of Lansing LLC,
Trigen-Cinergy Solutions of Owings Mills LLC, Trigen-Cinergy Solutions of
Owings Mills Energy Equipment Leasing, LLC, Trigen-Cinergy Solutions of
Rochester LLC, Trigen-Cinergy Solutions of Silver Grove LLC and
Ventoabrego, S.L.
Each of these entities is an indirect subsidiary of Cinergy Investments or
CGR and was acquired or established either as an energy-related company
under rule 58, an exempt telecommunications company, or an EWG or FUCO or
project parent thereof. Any EWG/FUCO project parent or exempt
telecommunications company in such enumeration was nominally capitalized.
Capitalization information with respect to the balance of the enumerated
companies is set forth in Cinergy's reports on Form U-9C-3 or U-57's or
other filings with the Commission respecting EWGs and 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 Fourth Quarter 1999
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 Fourth Quarter 1999.
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 Fourth Quarter
1999, including the identity of the companies involved and their lines of
business and corporate structure both before and after the consolidation or
reorganization.
No such consolidations or reorganizations occurred in the Fourth Quarter
1999.
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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: March 1, 2000
CINERGY SERVICES, INC.
By: /s/ Andrew M. Turk
Vice President and Treasurer
