-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U37fgBcmteXBF9iVxLgRq2U6a7iGTLkvzQsRmVkLO14XgojUPIG2ulu5f6Xx0peL AxRyf/SiBl8vRaZHE7cFdg== 0000899652-98-000113.txt : 19980716 0000899652-98-000113.hdr.sgml : 19980716 ACCESSION NUMBER: 0000899652-98-000113 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980715 ITEM INFORMATION: FILED AS OF DATE: 19980715 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PSI ENERGY INC CENTRAL INDEX KEY: 0000081020 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 350594457 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-03543 FILM NUMBER: 98666893 BUSINESS ADDRESS: STREET 1: 1000 E MAIN ST CITY: PLAINFIELD STATE: IN ZIP: 46168 BUSINESS PHONE: 3178399611 FORMER COMPANY: FORMER CONFORMED NAME: PUBLIC SERVICE CO OF INDIANA INC DATE OF NAME CHANGE: 19900509 8-K 1 SECOND QTR. CHARGES 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): June 30, 1998 PSI Energy, Inc. (Exact name of registrant as specified in its charter) Indiana 1-3543 35-0594457 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 1000 East Main Street, Plainfield, IN 46168 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (317) 839-9611 ITEM 5. OTHER EVENTS. PSI Energy, Inc. (Company), a subsidiary of Cinergy Corp., will take a one-time charge against second quarter 1998 earnings of $80 million ($50 million after tax), reflecting implementation of a 1989 settlement of a dispute with the Wabash Valley Power Association, Inc. (WVPA). The dispute with WVPA resulted from the cancellation of the Marble Hill nuclear power station in 1984. The Company has assumed WVPA's liability to Rural Utilities Service and the National Rural Utilities Cooperative Finance Corporation and will repay the obligation with interest over a 35-year term. The Company will use the net proceeds from a 35-year power sales agreement with WVPA to fund the principal amount of and interest on the obligation. The Company also announced that it will provide additional reserves of $7 million ($4 million after tax) in the second quarter of 1998 for its electric trading business. These additional reserves reflect the results of the Company's reassessment of the basis upon which it provides reserves, including those for credit exposure, on its existing contracts. The Company expects no realized loss from its trading operations in the second quarter of 1998, despite dramatic swings in the electricity market caused by unseasonably hot weather in June, scheduled and unplanned generating unit outages in the region and defaults by several power marketers on their supply obligations. The Company considered the effects of these events in estimating the value of its existing contract positions. 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. PSI Energy, Inc. (Registrant) Date: July 15, 1998 By: /s/ John P. Steffen ----------------------------- John P. Steffen, Vice President and Comptroller (Signature) -----END PRIVACY-ENHANCED MESSAGE-----