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 "March 1999 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 March 1999
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 three-months ended, March 31, 2000.
2. The following lists amounts expended by Cinergy Investments, CGR
and CGPI on investments during the calendar quarter ended March 31, 2000 in
their direct subsidiaries - namely, Cinergy Communications, Inc. and its
subsidiaries - that are neither (i) energy-related companies as defined in
rule 58 ("rule 58 companies"), (ii) exempt wholesale generators ("EWGs")
nor foreign utility companies ("FUCOs") nor EWG/FUCO holding companies nor
(iii) Cinergy Solutions, Inc. and its subsidiaries. (Investment
information with respect to Cinergy's investments in rule 58 companies,
EWGs/FUCOs and EWG/FUCO holding companies and Cinergy Solutions, Inc. and
its subsidiaries is provided in Cinergy's quarterly reports on Form U-9C-3
and quarterly certificates filed in Files No. 70-9011 9EWGs and FUCOs) and
70-8933 (Cinergy Solutions, Inc.), respectively.)
a. Cinergy Investments made $5.25 million in investments in Cinergy
Communications, Inc. and its subsidiaries in the calendar quarter
ended March 31, 2000.
b. CGR made no investments in such subsidiaries in the calendar quarter
ended March 31, 2000.
c. CGPI made no investments in such subsidiaries in the calendar quarter
ended March 31, 2000.
3. The following provides information concerning the nature and extent of
services provided by Intermediate Parents (as that term is used in the
March 1999 Order) during the calendar quarter ended March 31, 2000,
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 calendar quarter
ended March 31, 2000 are as follows:
Moravske Teplarny a.s. $7,445
Plzenska Energetika s.r.o. $8,272
Cinergetika U/L, a.s. $4,963
Energetika Chropyne, a.s. $1,379
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 calendar quarter
ended March 31, 2000are 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 calendar quarter ended March 31, 2000.
During the calendar quarter ended March 31, 2000, the following
Intermediate Parents and/or Nonutility Companies were formed or acquired -
Anglian Ash Limited (formed under English law), Cinergy Global One, Inc.
(formed under Delaware law), Cinergy Telecommunication Networks, Inc.
(formed under Delaware law), Cinergy Telecommunication Networks -Ohio, Inc.
(formed under Delaware law), Cinergy Telecommunication Networks -Kentucky,
Inc. (formed under Delaware law), Cinergy Telecommunication Networks
- -Indiana, Inc. (formed under Delaware law), CZECHPOL ENERGY spol s.r.o.
(formed under Czech law), Renewable Trading Limited (formed under English
law) and TCS-USFOS of Lansing LLC (formed under Delaware law).
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 Forms U-9C-3 and U-57 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 calendar quarter
ended March 31, 2000 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 calendar quarter ended March 31,
2000.
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 calendar
quarter ended March 31, 2000, 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 calendar quarter
ended March 31, 2000.
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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: May 26, 2000
CINERGY SERVICES, INC.
By: /s/Wendy L. Aumiller
Assistant Treasurer
