SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
In the Matter of CERTIFICATE
Cinergy Corp. et al. OF
File No. 70-8933 NOTIFICATION
(Public Utility Holding Company Act of 1935)
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 March 31,
2000, updates the business activities of Cinergy Solutions, Inc., a
Delaware corporation and direct, wholly-owned nonutility subsidiary of
Cinergy Investments ("Cinergy Solutions"), from the last quarterly
filing in this docket. Specifically, this report provides information
concerning (i) Cinergy Solutions itself and (ii) those of its
subsidiaries that, like Cinergy Solutions, 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, Cinergy Customer Care,
Inc., a Delaware corporation, Vestar, Inc., a Delaware corporation
(formerly Cinergy Business Solutions, Inc.), and four entities formed
under Canadian law, Vestar Limited (formerly Rose Technology Group
Limited), 1388368 Ontario Inc., 3036243 Nova Scotia Company and
Cinergy Solutions Limited Partnership (collectively, the "Vestar
Financing Entities"). (See the chart enclosed herewith as Exhibit A
showing Cinergy Solutions and all of its direct and indirect
subsidiaries.)
a. Energy Management Services. Cinergy Solutions does not itself
directly market any energy management services. However, as
previously reported in this docket (see the rule 24 certificate
filed February 15, 2000 together with the press release included
therewith), Vestar, Inc. and Vestar Limited 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 March
31, 2000, Vestar, Inc. and Vestar, Limited continued to be
actively engaged in their North American energy management and
performance businesses. 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.
b. Asset Management Services. None, except through certain
subsidiaries of Cinergy Solutions 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.
c. Technical/Consulting Services. In 1998 Cinergy Solutions formed
a new, wholly-owned subsidiary, Cinergy Customer Care, Inc., to
market utility billing services and/or utility call center
services to utility companies. However, this subsidiary has
never commenced active operations and remained inactive through
March 31, 2000.
d. QF Project Development and Ownership. See Cinergy's quarterly
reports on Form U-9C-3 for information concerning Cinergy
Solutions' joint venture with Trigen Energy Corporation, which
focuses on QF development.
e. Consumer Services. Cinergy Solutions is no longer offering its
appliance service contract program, called "Appliance Protection
Plus."
f. Customer Financing. Effective year-end 1999, Cinergy Services
discontinued marketing its "Quick Credit" financial services
program previously described in this file. Cinergy Solutions is
not otherwise providing any stand-alone customer financing.
g. Third-Party Alliances. See Cinergy's quarterly reports
on Form U-9C-3 for information concerning Cinergy Solutions'
joint venture with Trigen Energy Corporation.
2. During the calendar quarter ended March 31, 2000,Cinergy Services
provided various services (including accounting; finance; engineering;
executive; legal; and marketing, sales and customer service) to
Cinergy Solutions and all of its subsidiaries (including
energy-related companies under rule 58) for a total cost of
approximately $2.4 million. During that same period, The Cincinnati
Gas & Electric Company and PSI Energy, Inc. provided engineering and
construction services to Cinergy Solutions and its subsidiaries
(including energy-related companies under rule 58) totaling
approximately $199,000 and $201,000, respectively.
3. In December 1999, Cinergy issued one (1) guarantee in the principal
amount of $22 million in connection with the acquisition of Vestar
Limited. During the calendar quarter ended March 31, 2000, (a)
Cinergy issued $8.2 million in principal amount of guarantees of debt
or other obligations of Cinergy Solutions, Vestar, Inc. or Vestar,
Limited or any of the Vestar Financing Entities; and (b) Cinergy
Investments made net open-account a dvances to Cinergy Solutions, for
the benefit of Cinergy Solutions and all of its subsidiaries
(including energy-related companies under rule 58), totaling
approximately $4,501,000 at annual interest rates ranging from 6.39%
to 6.42%.
4. During the calendar quarter ended March 31, 2000, neither Cinergy
Solutions nor Vestar, Inc. nor Vestar, Limited 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.
5. Consolidated financial statements for Cinergy Solutions dated March
31, 2000 are enclosed herewith under a claim for confidential
treatment pursuant to rule 104(b) under the Act.
<PAGE>
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: May 16, 2000
CINERGY SERVICES, INC.
By: /s/Wendy L. Aumiller
Assistant Treasurer
Exhibit A
Cinergy Solutions, Inc. and Subsidiaries
Cinergy Corp. (Delaware, 6/30/1993)/1/
Cinergy Investments, Inc. (Delaware, 10/24/1994)
Cinergy Solutions, Inc. (Delaware, 2/11/1997)
1388368 Ontario Inc. (Ontario, 12/2/99)
Cinergy Solutions Limited Partnership
(Ontario, 12/14/99)/2/
3036243 Nova Scotia Company (Nova Scotia,
12/10/99)
Cinergy Solutions Limited Partnership
(Ontario, 12/14/99)/2/
Vestar, Inc. (Delaware, 4/6/98; formerly Cinergy
Business Solutions, Inc.)
Vestar Limited (Ontario, 3/9/84; formerly Rose
Technology Group Limited)/3/
Cinergy Customer Care, Inc. (Delaware, 8/21/98)
Cinergy EPCOM, LLC (Delaware, 8/20/99)
Cinergy EPCOM College Park, LLC (Delaware,
8/20/99)
Cinergy Solutions of Golden, Inc.(Delaware,
3/22/99)
Cinergy Solutions of Tuscola, Inc. (Delaware,
10/13/98)
Energy Equipment Leasing LLC (Delaware,
11/12/98)/4/
Trigen-Cinergy Solutions LLC (Delaware,
2/18/1997)/5/
Trigen-Cinergy Solutions of Ashtabula LLC
(Delaware,4-21-99)/4/
Trigen-Cinergy Solutions of Baltimore LLC
(Delaware, 11/10/98)/4/
Trigen-Cinergy Solutions of Boca Raton, LLC
(Delaware, 9/4/98)/6//6/
Trigen-Cinergy Solutions of Cincinnati LLC (Ohio,
8/29/1997)/7/
Trigen-Cinergy Solutions of College Park, LLC
(Delaware, 2/18/99)/4/
Trigen-Cinergy Solutions of Danville LLC
(Delaware, 11/29/99)
Trigen-Cinergy Solutions of Illinois L.L.C.
(Delaware, 4/17/1997)/4/
Trigen-Cinergy Solutions of Lansing LLC (Delaware,
11/3/99)/6/
Trigen/Cinergy USFOS of Lansing LLC (Delaware
11/3/99)/9/
Trigen-Cinergy Solutions of Orlando LLC (Delaware,
6/12/1998)/6/
Trigen-Cinergy Solutions of Owings Mills LLC
(Delaware, 9/20/99)/4/
Trigen-Cinergy Solutions of Owings Mills Energy
Equipment Leasing, LLC (Delaware, 10/20/99)/4/
Trigen-Cinergy Solutions of Rochester LLC
(Delaware, 10/20/99)/4/
Trigen-Cinergy Solutions of Silver Grove LLC
(Delaware, 3/18/99)/4/
Trigen-Cinergy Solutions of St. Paul LLC (Delaware
8/13/98)/4/
St. Paul Cogeneration LLC (Minnesota,
12/18/98)/8/
Trigen-Cinergy Solutions of Tuscola, LLC
(Delaware, 8/21/98)/4/
ENDNOTES
/1/ Subsidiary status shown by indentation. Some of the subsidiaries
listed are not currently engaged in active business operations.
/2/ Jointly owned 99.9% by 3036243 Nova Scotia Company and .1% by 1388368
Ontario, Inc.
/3/ 1381055 Ontario, Inc. (Ontario, 10-22-99) and Rose Technology Group
Limited (Ontario, 3-9-84) are predecessors to the amalgamation effective
12-17-99.
/4/ Jointly owned 49% by Cinergy Solutions, Inc. and 51% by Trigen
Solutions, Inc.
/5/ Jointly owned 50% each with Trigen Solutions, Inc., a subsidiary of
Trigen Energy Corporation.
/6/ Jointly owned 51% by Cinergy Solutions, Inc. and 49% by Trigen
Solutions, Inc.
/7/ Effective August 29, 1997, the former Cinergy Cooling Corp. was merged
with and into Trigen-Cinergy Solutions of Cincinnati LLC, with said LLC
being the surviving company jointly owned 51% by Cinergy Solutions, Inc.
and 49% by Trigen Solutions, Inc.
/8/ Jointly owned 50% by Trigen-Cinergy Solutions of St. Paul LLC and 50%
by Market Street Energy Company, LLC.
/9/ Jointly owned 80% by Trigen-Cinergy Solutions of Lansing LLC and 20%
by U.S. Filter Operating Services, LLC.
