UNITED STATES
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): MAY 9, 2000
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
<PAGE>
ITEM 5. OTHER EVENTS.
On May 9, 2000, The Cincinnati Gas & Electric Company, a wholly-owned subsidiary
of Cinergy Corp., announced that it reached a stipulated agreement with various
parties regarding its Proposed Transition Plan for electric deregulation and
customer choice for the State of Ohio.
Reference is made to the press release of Cinergy Corp., dated May 9, 2000,
announcing the agreement and its key features, 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 May 9, 2000.
<PAGE>
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: MAY 10, 2000 BY: /S/BERNARD F. ROBERTS
----------------------------------------
Bernard F. Roberts
Vice President & Comptroller
(Signature)
<PAGE>
EXHIBIT 99
News contact: Steve Brash 513-287-2226 (w) 513-231-6895 (h)
Investor contact: Steve Schrader 513-287-1083
Website: www.cinergy.com
FOR IMMEDIATE RELEASE - MAY 9, 2000
CG&E, INTERVENORS REACH AGREEMENT ON OHIO TRANSITION PLAN
CINCINNATI - The Cincinnati Gas & Electric Co., a subsidiary of Cinergy Corp.
(NYSE:CIN), announced that it has reached a stipulated agreement with the staff
of the Public Utilities Commission of Ohio (PUCO), the Ohio Consumers' Counsel
(OCC), Ohio Department of Development, the Industrial Energy Users-Ohio, The
Kroger Co., Enron Energy, the Ohio Hospital Association, the Ohio Manufacturers'
Association, the Ohio Council of Retail Merchants, Exelon Energy, Newenergy, WPS
Energy, Dynegy, Cincinnati\Hamilton County Community Action Agency, Supporting
Council of Preventive Effort (SCOPE), Columbia Energy Services, Columbia Energy
Power Marketing, Strategic Energy, Mid-Atlantic Power Supply Association and
People Working Cooperatively with respect to its proposal to implement electric
customer choice in Ohio beginning January 1, 2001.
"We are very encouraged by this settlement, which brings electric customer
choice to our Ohio service area," said James E. Rogers, vice chairman,
president, and chief executive officer of Cinergy. "The settlement expands upon
the Ohio legislative framework enacted in June of 1999, and provides the roadmap
that allows us to move forward and finalize our plans for the competitive
electric environment in Ohio."
Under Ohio's customer choice legislation and CG&E's settlement, residential
customer rates will be frozen through December 31, 2005. This frozen rate
continues a base rate freeze which began in 1994, and includes fuel costs that
are significantly lower today than in 1994. In addition, residential customers
of CG&E will receive a 5% reduction in the generation portion of their electric
rates, effective January 1, 2001. This is expected to reduce a typical
residential bill by about $2.30 a month, saving customers approximately $81
million over the five-year transition period. Finally, under the settlement CG&E
has agreed to provide $4 million over the next five years in support of energy
efficiency and weatherization services for low income customers.
The settlement also resolves all other issues associated with CG&E's December
28, 1999 transition filing. The settlement provides for the creation of a
Regulatory Transition Charge, or RTC, designed to recover CG&E's regulatory
assets and other transition costs over a ten-year period.
Other major features of the agreement include:
* "Unbundled" and separately stated charges for the different components of
electric service, including transmission, distribution, ancillary services,
and generation;
* Authority for CG&E to transfer its generation assets to a separate,
non-regulated corporate subsidiary to provide flexibility to manage its
generation asset portfolio in a manner that enhances opportunities in a
competitive marketplace;
* Standard offer "default" service, which ensures that CG&E will be the
supplier of last resort so that no customer will be without a supplier;
* Authority for CG&E to apply the proceeds of transition cost recovery to
costs incurred during the transition period including, but not limited to,
implementation costs and purchased power costs that may be incurred by CG&E
to continue to maintain a sufficient reserve margin necessary to provide
reliable and adequate service to its customers.
The agreement also stimulates the creation of a competitive market in CG&E's
service territory by providing shopping credits to switching customers. The
first 20% of the load in each customer class - residential, commercial and
industrial customers - have an additional incentive, through enhanced credits,
to choose an alternative supplier. Attached is a schedule showing average
unbundled rates, shopping credits by rate schedule, and regulatory transition
charges.
"As a company that has been a leading advocate of electric industry competition,
we wanted to encourage the early development of a competitive market," said
James L. Turner, president of CG&E. "We recognized that our traditionally low
rates could serve to discourage competition in the short term, so we worked with
our customers and future competitors to develop a creative way to increase
customers' interest in other suppliers."
Cinergy expects the settlement to be approved prior to the end of the third
quarter of 2000.
Cinergy Corp. is one of the nation's leading diversified energy companies, with
a total capitalization of $7.2 billion and assets of $10 billion. Cinergy owns
or operates more than 16,500 megawatts of electrical and combined heat plant
generation that is either operational or under development. It also has 55,000
miles of electric and gas transmission lines in the United States and abroad and
approximately 9,000 employees in nine countries. Its largest operating
companies, The Cincinnati Gas & Electric Company and PSI Energy, Inc., serve
more than 1.4 million electric customers and 478,000 gas customers in Indiana,
Ohio and Kentucky.
Cinergy is active in U.S. power and natural gas markets and maintains a
24-hour-a-day, seven-day-a-week trading operation. The interconnections of
Cinergy's Midwestern transmission assets give it access to 37 percent of the
total U.S. energy consumption. In 1998 the New York Mercantile Exchange selected
Cinergy to be its transmission hub for Midwest electricity futures trading,
which has become the most liquid, active hub in the United States.
In addition to its U.S. operations, Cinergy owns and operates power generation,
transmission and distribution assets in the Czech Republic, Spain, the United
Kingdom, Zambia, and Estonia. Cinergy is also active in European gas and
electricity markets.
Statements made in this release that convey the company's or management's
intentions, expectations or predictions of the future are forward-looking
statements. The company's actual results could differ materially from those
projected in the forward-looking statements, and there can be no assurance that
estimates of future results will be achieved. Please refer to the company's sec
filings for additional information concerning factors that could cause actual
results to differ materially from those in the forward-looking statements.
<TABLE>
<CAPTION>
THE CINCINNATI GAS & ELECTRIC COMPANY
OHIO TRANSITION PLAN SETTLEMENT
<S> <C> <C> <C> <C> <C> <C>
Secondary Secondary
Distribution Distribution Primary
Residential Small Large Distribution Transmission Lighting
------------- ------------- -------------- -------------- -------------- ----------
1999 Sales (kWh) 6,660,212,723 534,795,290 6,548,752,097 2,575,780,877 3,347,918,025 99,915,207
Average Unbundled Rates (cents per kWh)(1)
Generation Charge 4.5521 5.3601 4.8145 3.8877 3.2700 3.0057
Transmission and Distribution
Charges 2.1564 3.2157 1.2773 0.8336 0.3302 3.9570
Ancillary Services, Universal
Service Fund and Ohio Excise Tax 0.6084 0.6000 0.5820 0.5122 0.4714 0.4680
Residential Generation Credit (0.2276) - - - - -
Total Unbundled Rates 7.0893 9.1758 6.6738 5.2335 4.0716 7.4307
Shopping Credit Through 12/31/05 for
Customers Who Switch Suppliers During
Market Development Period (cents per kWh)
First 20% of Switchers 5.0000 5.3601 4.8145 3.8877 3.2700 3.0057
Next 80% of Switchers 3.9407 4.5438 4.2460 3.5145 3.0322 2.8272
Regulatory Transition Charge Beginning
1/1/06 for Customers Who Switch Suppliers
During Market Development Period and
for All Other Customers Following End of
Market Development Period (cents per kWh) 0.6114 0.9499 0.6719 0.4562 0.3043 0.2290
<FN>
(1) Average rates do not include monthly distribution-related customer charges.
</FN>
</TABLE>
