-----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, S/P/Ku2h9yYxktaepqHrt1BZom+DUax6fQ6F58+SmZ9Q4Nq9sSQd0gnmUktJHLQ/ F0jcYLoVqAB0jM0T0SpVEA== 0000899652-97-000155.txt : 19970602 0000899652-97-000155.hdr.sgml : 19970602 ACCESSION NUMBER: 0000899652-97-000155 CONFORMED SUBMISSION TYPE: U-1/A PUBLIC DOCUMENT COUNT: 28 FILED AS OF DATE: 19970530 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CINERGY CORP CENTRAL INDEX KEY: 0000899652 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 311385023 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: U-1/A SEC ACT: 1935 Act SEC FILE NUMBER: 070-09015 FILM NUMBER: 97616960 BUSINESS ADDRESS: STREET 1: 139 E FOURTH ST CITY: CINCINNATI STATE: OH ZIP: 45202 BUSINESS PHONE: 5133812000 MAIL ADDRESS: STREET 1: 139 E FOURTH STREET CITY: CINCINATI STATE: OH ZIP: 45202 U-1/A 1 FORM U-1/A File No. 70-9015 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________ AMENDMENT NO. 2 TO FORM U-1 APPLICATION-DECLARATION UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ____________________________________________ Cinergy Corp. Cinergy Investments, Inc. Cinergy Services, Inc. The Cincinnati Gas & Electric Company The Union Light, Heat and Power Company The West Harrison Gas and Electric Company Lawrenceburg Gas Company Miami Power Corporation Tri-State Improvement Company KO Transmission Company 139 East Fourth Street Cincinnati, Ohio 45202 PSI Energy, Inc. 1000 East Main Street Plainfield, Indiana 46168 (Name of companies filing this statement and addresses of principal executive offices) Cinergy Corp. (Name of top registered holding company parent) William L. Sheafer Treasurer Cinergy Corp. (address above) (Name and address of agent of service) Applicants request that the Commission send copies of all notices, orders and communications in connection herewith to: Jerome A. Vennemann William T. Baker Associate General Counsel Reid & Priest LLP Cinergy Corp. 40 West 57th (address above) New York, New York 10019 The application-declaration as previously amended is hereby amended and restated in its entirety to read as follows: Item 1. Description of Proposed Transactions Cinergy Corp. ("Cinergy"), a registered holding company under the Public Utility Holding Company Act of 1935, as amended (the "Act"); Cinergy Investments, Inc., Cinergy's subsidiary nonutility company ("Investments"); PSI Energy, Inc., an electric utility subsidiary of Cinergy ("PSI"), The Cincinnati Gas & Electric Company, an electric and gas utility subsidiary of Cinergy ("CG&E"); CG&E's utility subsidiaries: Lawrenceburg Gas Company ("Lawrenceburg"), The West Harrison Gas and Electric Company ("West Harrison") and Miami Power Corporation ("Miami"); and CG&E's nonutility subsidiaries: Tri-State Improvement Company ("Tri-State") and KO Transmission Company ("KO"), propose to engage in the transactions hereinafter described. PSI, an Indiana corporation, is engaged in the production, transmission, distribution and sale of electricity in north central, central and southern Indiana and serves an estimated population of two million people located in 69 of Indiana's 92 counties, including the cities of Bloomington, Columbus, Kokomo, Lafayette, New Albany and Terre Haute. CG&E and its subsidiaries ULH&P, Lawrenceburg and West Harrison provide electric and/or gas service in the southwestern portion of Ohio and adjacent areas in Kentucky and Indiana. The area served with electricity, gas, or both covers approximately 3,000 square miles and includes the cities of Cincinnati and Middletown in Ohio, Covington and Newport in Kentucky, and Lawrenceburg in Indiana. Miami owns a 138 kV transmission line running from Miami Fort Power Station to a point near Madison, Indiana. KO, a Kentucky corporation, transports gas between Kentucky and Ohio by means of an interstate pipeline located almost entirely in Kentucky in which it has a one-third ownership interest. Tri-State, an Ohio corporation, acquires and holds property in Ohio, Kentucky and Indiana for substations, electric and gas rights of way, office space and other uses in connection with CG&E's and its subsidiaries' utility operations. Cinergy Services, Inc. ("Cinergy Services") is a service company that provides various services exclusively to associate companies. Investments functions as a holding company with respect to certain of Cinergy's nonutility subsidiaries. A. August 1995 Order By order dated August 25, 1995 (Release No. 35-26362) ("August 1995 Order"), Cinergy, CG&E, PSI, ULH&P, West Harrison, Lawrenceburg, Miami, Cinergy Services, Tri-State and KO were authorized to engage in the following transactions through May 31, 1997: (1) PSI, ULH&P, Lawrenceburg, West Harrison and Miami were authorized to incur short-term borrowings from banks and, in PSI's case, through the issuance and sale of commercial paper; (2) Cinergy was authorized to issue guarantees and provide letters of credit in connection with short-term bank borrowings of its utility and nonutility subsidiaries; and (3) all of the foregoing companies, together with CG&E, Cinergy Services, Tri-State and KO, were authorized to implement a money pool ("Money Pool") to coordinate and provide for their short-term cash and working capital requirements. The proceeds of such short-term borrowings were to be utilized by PSI, ULH&P, Lawrenceburg, West Harrison and Miami for general corporate purposes including (1) interim financing of capital requirements, (2) working capital needs, (3) repayment, redemption or refinancing of debt or preferred stock, and (4) loans through the Money Pool. The August 1995 Order limited the aggregate principal amount of short-term borrowings at any one time outstanding (whether through the Money Pool or from banks or the sale of commercial paper) to the following amounts: PSI, $400 million; ULH&P, $35 million; West Harrison, $200,000; Lawrenceburg, $3 million; and Miami, $100,000. Finally, the August 1995 Order limited the maximum amount of guarantees and letters of credit issued or obtained by Cinergy to a $375 million aggregate limitation imposed by the Commission in another proceeding (Release No. 35-26215, January 11, 1995). In March 1996 (Release No. 35-26488, March 12, 1996) ("March 1996 Order"), the Commission authorized Cinergy to incur short-term bank borrowings, issue and sell commercial paper and obtain letters of credit in an aggregate principal amount at any one time outstanding not to exceed $1 billion through December 31, 1999. B. Summary of Requested Authorizations Applicants herein seek authority to engage in the following proposed transactions, in each case through December 31, 2002: 1. In connection with the continued use of the Money Pool, (a) PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to make loans to and incur borrowings from one another thereunder, and (b) Cinergy, Cinergy Services, CG&E, Tri-State and KO propose to make loans to PSI, ULH&P, Lawrenceburg, West Harrison and Miami thereunder; 2. PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to incur short-term bank borrowings and PSI proposes to issue and sell commercial paper; and 3. Cinergy and Investments propose to guarantee the debt or other obligations of certain existing Cinergy system companies and companies whose securities may be acquired by Cinergy or any subsidiary thereof from time to time through December 31, 2002 pursuant to and in accordance with rule 58 (Release No. 35-26667, February 14, 1997). Proceeds of any short-term borrowings by PSI, ULH&P, Lawrenceburg, West Harrison and Miami (whether from banks, the Money Pool or, in PSI's case, through the sale of commercial paper) would be used by such companies for general corporate purposes, including (1) interim financing of capital requirements; (2) working capital needs; (3) repayment, redemption, refinancing of debt or preferred stock; (4) cash requirements to meet unexpected contingencies and payment and timing differences; (5) loans through the Money Pool; and (6) other transactions relating to these Applicants' utility businesses. Under the authority requested herein, the maximum principal amount of short-term borrowings outstanding at any one time by PSI, ULH&P, Lawrenceburg, West Harrison and Miami (whether from banks, the Money Pool or, in PSI's case, through the sale of commercial paper) (each, a "Borrowing Limitation") would not exceed the following amounts: PSI, $400 million; ULH&P, $50 million; West Harrison, $200,000; Lawrenceburg, $3 million; and Miami, $100,000. PSI's and ULH&P's estimated capital requirements for 1997 are approximately $447 million and $33 million, respectively. Guarantees issued (I) by Cinergy would be subject to the $1 billion aggregate limitation specified in the March 1996 Order (subject to any increases in that authorization that Cinergy may obtain pursuant to one or more further orders of the Commission), and (ii) by Investments would not exceed $250 million at any one time outstanding. C. Money Pool Subject to the respective Borrowing Limitations, from time to time through December 31, 2002, PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to make loans to each other, and Cinergy, Cinergy Services, CG&E, Tri-State and KO propose to make loans to PSI, ULH&P, Lawrenceburg, West Harrison and Miami, all pursuant to and in accordance with the Money Pool./1/ Applicants propose no changes to the Money Pool as authorized in the August 1995 Order and embodied in the related Money Pool Agreement./2/ Under the Money Pool, funds are made available from the following sources from time to time for short-term loans to Money Pool Participants: (1) surplus treasury funds of Money Pool Participants ("Internal Funds") and (2) proceeds from bank borrowings by Money Pool Participants or the sale of commercial paper by Cinergy, CG&E or PSI ("External Funds"). Funds are made available from such sources in such order as Cinergy Services, as administrator of the Money Pool, determines would result in a lower cost of borrowing, consistent with the individual borrowing needs and financial standing of the companies providing funds to the Money Pool. Companies that borrow from the Money Pool borrow pro rata from each lending company, in the proportion that the total amount loaned by each such lending company bears to the total amount then loaned through the Money Pool. On any day when more than one fund source with different rates of interest is used to fund loans through the Money Pool, each borrowing company borrows pro rata from each such fund source in the same proportion that the amount of funds provided by that fund source bears to the total amount of short-term funds available to the Money Pool. No Money Pool Participant is required to borrow through the Money Pool if it determines that it could borrow at a lower cost directly from banks or through the sale of commercial paper. Cinergy may not borrow from the Money Pool. Fees paid to banks to maintain credit lines by Money Pool Participants lending External Funds to the Money Pool are paid by the Money Pool Participant maintaining the line quarterly. A portion of those costs are allocated to the companies borrowing such External Funds through the Money Pool in proportion to their outstanding borrowings of such External Funds. When only Internal Funds comprise the funds available in the Money Pool, the interest rate applicable to loans thereof is the CD yield equivalent of the 30-day Federal Reserve "AA" Industrial Commercial Paper Composite Rate, which rate parallels the lenders' effective cost of capital with respect to such internal funds. When only External Funds comprise the funds available in the Money Pool, the interest rate applicable to loans thereof is equal to the lending company's cost for such External Funds (or a composite rate equal to the weighted average of the of the costs incurred by the respective Money Pool Participants for such External Funds, if more than one Money Pool Participant had made available External Funds on such day). In circumstances where both Internal Funds and External Funds are concurrently borrowed through the Money Pool, the rate applicable to all loans comprised of such "blended" funds is a composite rate equal to the weighted average of (a) the cost of all such Internal Funds and (b) the cost of all such External Funds. Where both Internal Funds and External Funds are available for loans through the Money Pool, loans may be made exclusively from Internal Funds or External Funds, rather than from a "blending" of such funds, to the extent it is determined that such loans would result in a lower cost of borrowing. Money Pool loans are in the form of open-account advances documented and evidenced on the books of the Money Pool Participants, although each lending party is entitled upon demand to receive from any Money Pool Participant to whom it advances funds one or more promissory notes evidencing any or all of its advances. Each party receiving a Money Pool loan is required to repay the principal amount of such loan, together with all interest accrued thereon, upon demand and in any event not later than one year from the date of the advance. All Money Pool loans are prepayable by the borrower in whole or in part at any time without premium or penalty. Money Pool advances accrue interest monthly. Funds not required to make Money Pool loans (other than funds required to satisfy the Money Pool's liquidity requirements) may be invested in one or more short-term investments, including (1) interest-bearing accounts with banks, (2) obligations issued or guaranteed by the U.S. Government or its agencies and instrumentalities, including obligations under repurchase agreements, (3) obligations issued or guaranteed by any state or political subdivision thereof rated not less than "A" by a nationally recognized rating agency, (4) commercial paper rated not less than "A-1" or "P-1" or their equivalent by a nationally recognized rating agency, (5) money market funds, (6) bank certificates of deposit, (7) Eurodollar time deposits and certificates of deposit, and (8) such other investments as are permitted by section 9 of the Act and rule 40 thereunder. Interest income and investment income earned on loans and investments of surplus funds are allocated among the Money Pool Participants in accordance with the proportion each participant's contribution bears to the total amount of funds in the Money Pool and the cost of funds provided to the Money Pool by such participant. Operation of the Money Pool, including record-keeping and coordination of loans, is administered by Cinergy Services on an "at cost" basis under the authority of the appropriate officers of the Money Pool Participants. Cinergy, CG&E and PSI expressly acknowledge in the Money Pool Agreement that none of such companies will seek to overturn, reverse, set aside, change or enjoin, whether through appeal or the initiation or maintenance of any action in any forum, a decision or order of the Public Utilities Commission of Ohio ("PUCO") or the Indiana Utility Regulatory Commission ("IURC") which pertains to recovery, disallowance, allowance, deferral or ratemaking treatment of any expense, charge, cost or allocation incurred or accrued by CG&E or PSI in or as a result of a contract, agreement, arrangement or transaction with any affiliate, associate, holding, mutual service or subsidiary company on the basis that such expense, charge, cost or allocation has itself been filed with or approved by the Securities and Exchange Commission or was incurred pursuant to a contract, arrangement or allocation method which was filed with or approved by the Securities and Exchange Commission. D. Short-Term Bank Borrowings and Commercial Paper Subject to the respective Borrowing Limitations, from time to time through December 31, 2002, (a) PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to borrow short-term funds from banks or other financial institutions pursuant to formal or informal credit facilities, and (b) PSI proposes to issue and sell commercial paper to commercial paper dealers. 1. Bank Borrowings Bank borrowings would be evidenced by promissory notes, each of which would be issued on or before December 31, 2002 and would mature no later than one year from the date of issuance (except in the case of borrowings by ULH&P, which would mature no later than two years from the date of issuance)/3/, would bear interest at a rate no higher than the prime rate for commercial bank loans prevailing on the date of such borrowing, and may require fees to the lender not to exceed 50 basis points per annum on the total commitment. 2. Commercial Paper Subject to the Borrowing Limitation applicable to it, from time to time through December 31, 2002, PSI also proposes to issue and sell commercial paper to one or more dealers (or directly to financial institutions if the resulting cost of money is equal to or less than that available from dealer-placed commercial paper). PSI proposes to issue and sell the commercial paper at market rates with varying maturities not to exceed 270 days. The commercial paper will be in the form of book-entry unsecured promissory notes with varying denominations of not less than $25,000 each. No commission or fee will be payable in connection with the issue and sale of the commercial paper. However, the purchasing dealer will re-offer the commercial paper at a rate less than the rate to PSI. The discount rate to dealers will not exceed the maximum discount rate per annum prevailing at the date of issuance for commercial paper of comparable quality and the same maturity. The purchasing dealer will re-offer the commercial paper in such a manner as not to constitute a public offering within the meaning of the Securities Act of 1933. E. Cinergy/Investments Guarantees Subject in the case of Cinergy to the $1 billion aggregate limitation set forth in the March 1996 Order (including any increase in such limitation pursuant to one or more further orders of the Commission), and in the case of Investments to an aggregate limitation at any one time outstanding not to exceed $250 million, Cinergy and Investments seek authorization from time to time through December 31, 2002 to guarantee the debt and other obligations of (1) certain existing Cinergy system companies and (2) any "energy-related companies" whose securities Cinergy or any subsidiary thereof may acquire from time to time pursuant to and in accordance with rule 58. (The companies referenced in clauses (1) and (2) are collectively referred to as "Primary Obligors.") The existing Cinergy system companies as to which Cinergy and Investments seek authorization to issue guarantees are (as to Cinergy only) Cinergy Services and (as to both Cinergy and Investments) certain nonutility subsidiaries of Cinergy and Investments, namely, KO, Tri-State, Cinergy Resources, Inc. (formerly CG&E Resource Marketing, Inc.), Cinergy Capital & Trading, Inc. (formerly Wholesale Power Services, Inc.), Cinergy Technology, Inc. (formerly PSI Environmental Corp.) and Enertech Associates, Inc. (formerly Power International, Inc.). All of the foregoing nonutility companies were in existence at the date of the Commission's 1994 order authorizing the Cinergy merger and related transactions (Release No. 35-26146, October 21, 1994), and accordingly are subject to the Commission's pending reservation of jurisdiction with respect to the ultimate retainability of such companies and the other then-existing nonutility companies and nonutility business intersts of Cinergy and its subsidiaries. That reservation of jurisdiction expires on October 21, 1997 and Cinergy will be filing with the Commission on or before that date an application seeking a release of such jurisdiction. In that regard, Cinergy believes that some or all of such companies may be retainable pursuant to rule 58. In any event, Cinergy and Investments acknowledge that any grant by the Commission herein of the requested guarantee authority in respect of such nonutility companies in no way affects resolution of the question of the ultimate retainability of such companies. Debt financing of any Primary Obligor which is so guaranteed will not exceed 30 years and will bear interest either at a floating rate not in excess of 200 basis points over the prime rate, applicable LIBOR or other appropriate index in effect from time to time or at a fixed rate not in excess of 300 basis points above the yield at the time of issuance of U.S. Treasury obligations of a comparable maturity. Any commitment or other fees on the debt will not exceed 100 basis points on the total amount of debt financing. Obligations (other than debt) of Primary Obligors that Cinergy and Investments propose to receive authorization to guarantee or otherwise act as indemnitor or surety would involve a Primary Obligor's obligation to perform under contracts with sellers or customers. Guarantees issued by Cinergy or Investments in these circumstances may take the form of procuring bid bonds and the like; guaranteeing a Primary Obligor's performance; or other similar direct or indirect guarantees of a Primary Obligor's contractual obligations. These arrangements may be necessary in order for a Primary Obligor to satisfy a seller or a customer that it has adequate support for its contractual obligations. Cinergy will not seek recovery through higher rates to customers of Cinergy's utility subsidiaries in order to compensate it or Investments for any potential losses they may sustain resulting from such guarantees. F. Reporting Obligations Within 45 days after the end of each calendar quarter, Cinergy Services, on behalf of the Applicants, will file a certificate with the Commission pursuant to rule 24 under the Act setting forth the following information with respect to the preceding calendar quarter: (I) each Applicant's maximum principal amount of external short-term borrowings outstanding at any one time outstanding (i.e., bank borrowings and, in PSI's case, commercial paper); (ii) with respect to the operation of the Money Pool, (a) the average annual interest rate applicable to borrowings through the Money Pool, (b) the maximum principal amount of Money Pool borrowings by the respective Applicants outstanding at any one time, and the maximum principal amount of funds loaned through the Money Pool by the respective Applicants outstanding at any one time; and (iii) a summary of any guarantees issued by Cinergy or Investments. G. Rule 54 Statement Under Rule 54, in determining whether to approve the issue or sale of a security by a registered holding company for purposes other than the acquisition of an EWG or a FUCO other transactions by such registered holding company or its subsidiaries other than with respect to EWGs and FUCOs, the Commission shall not consider the effect of the capitalization or earnings of any subsidiary which is an EWG or a FUCO if the conditions in Rule 53(a), (b) and are satisfied. As set forth below, all applicable conditions of Rule 53(a) are and, upon consummation of the proposed transactions, will be satisfied, and none of the conditions specified in Rule 53(b) exists or, as a result of the proposed transactions, will exist. Rule 53(a)(1): At December 31, 1996, Cinergy had invested, directly or indirectly, an aggregate of approximately $487 million in EWGs and FUCOs. The average of the consolidated retained earnings of Cinergy reported on Form 10-K or Form 10-Q, as applicable, for the four consecutive quarters ended December 31, 1996 was $990 million. Accordingly, based on Cinergy's "consolidated retained earnings" at December 31, 1996, and taking into account EWG /FUCO investments as of that date, the current Rule 53 aggregate investment limitation is approximately $8 million (i.e., 50% of "consolidated retained earnings" $495 million minus "aggregate investment" at December 31, 1996 $487 million). Rule 53(a)(2): Cinergy maintains books and records enabling it to identify investments in and earnings from each EWG and FUCO in which it directly or indirectly holds an interest. At present, Cinergy does not hold any interest in a domestic EWG; Rule 53(a)(2)(I) is therefore inapplicable. In accordance with Rule 53(a)(2)(ii), the books and records and financial statements of each foreign EWG and FUCO which is a "majority-owned subsidiary company" of Cinergy are kept in conformity with and prepared according to U.S. generally accepted accounting principles ("GAAP"). Cinergy will provide the Commission access to such books and records and financial statements, or copies thereof, in English, as the Commission may request. In accordance with Rule 53(a)(2)(iii), for each foreign EWG and FUCO in which Cinergy directly or indirectly owns 50% or less of the voting securities, Cinergy will proceed in good faith, to the extent reasonable under the circumstances, to cause each such entity's books and records to be kept in conformity with, and the financial statements of each such entity to be prepared according to, GAAP. If such books and records are maintained, or such financial statements are prepared, according to a comprehensive body of accounting principles other than GAAP, Cinergy will, upon request of the Commission, describe and quantify each material variation from GAAP in the accounting principles, practices and methods used to maintain such books and records and each material variation from GAAP in the balance sheet line items and net income reported in such financial statements, as the case may be. In addition, Cinergy will proceed in good faith, to the extent reasonable under the circumstances, to cause access by the Commission to such books and records and financial statements, or copies thereof, in English, as the Commission may request, and in any event will make available to the Commission any such books and records that are available to Cinergy. Rule 53(a)(3): No more than 2% of the employees of Cinergy's operating utility subsidiaries will, at any one time, directly or indirectly, render services to EWGs and FUCOs. Rule 53(a)(4): Cinergy will simultaneously submit a copy of this statement and of any Rule 24 certificate hereunder, as well as a copy of Cinergy's Form U5S and Exhibits H and I thereto, to each public utility commission having jurisdiction over the retail rates of any Cinergy utility subsidiary. Rule 53(b): The provisions of Rule 53(a) are not made inapplicable to the authorization herein requested by reason of the provisions of Rule 53(b). Rule 53(b)(1): Neither Cinergy nor any subsidiary thereof is the subject of any pending bankruptcy or similar proceeding. Rule 53(b)(2): Cinergy's average consolidated retained earnings for the four quarters ended December 31, 1996 are $990 million, versus $926 million for the four quarters ended December 31, 1995, a difference of approximately $64 million (representing an increase of 6.9%). Rule 53(b)(3): For the twelve months ended December 31, 1996, Cinergy did not report operating losses attributable to its direct and indirect investments in EWGs and FUCOs aggregating in excess of 5% of consolidated retained earnings. Item 2. Fees, Commissions and Expenses The fees, commissions and expenses ("Fees") to be incurred, directly or indirectly, by Applicants or any associate companies thereof in connection with the proposed transactions are estimated as follows: Fees of Cinergy Services $15,000 Fees of Reid & Priest $5,000 TOTAL $20,000 Item 3. Applicable Statutory Provisions Applicants consider that sections 6(a), 7, 9(a), 10 and 12(b) of the Act and rules 40, 43, 45, 52 and 54 thereunder are or may be applicable to the proposed transactions. Item 4. Regulatory Approval The IURC does not have jurisdiction over short-term borrowings by PSI, Lawrenceburg, West Harrison and other Indiana utilities with maturities of one year or less. The Kentucky Public Service Commission does not have securities issuance jurisdiction over short-term borrowings by ULH&P and other Kentucky utilities with maturities of two years or less. Under the Ohio Revised Code, a public utility which is an electric light company, such as CG&E, when authorized by an order of the PUCO, may issue notes or other evidences of indebtedness payable at periods of not more than 12 months. The foregoing provision does not apply to the issue, renewal or assumption of liability of notes and other evidences of indebtedness maturing not more than 12 months after the date of such issue, renewal or assumption of liability and aggregating (together with all other then outstanding notes and other evidences of indebtedness of a maturity of 12 months or less on which such electric light company is primarily or secondarily liable) not more than 5% of the par value of the other stocks, bonds, notes and other evidences of indebtedness of such electric light company then outstanding (the "Ohio Statutory Exemption"). By orders dated May 4, 1995 (Case Nos. 95-275-GE-AIS and 95-358-GE-AIS) and June 20, 1996 (Case No. 96-488-GE-AIS), the PUCO authorized CG&E to become a participant in the Money Pool and to issue and renew unsecured notes, including commercial paper, and other evidences of short-term indebtedness, maturing at periods of not more than 12 months, from time to time through (initially) June 30, 1996 and (by the later order) through June 30, 1997, provided that CG&E's aggregate principal amount of short-term indebtedness, including any short-term indebtedness incurred pursuant to the Ohio Statutory Exemption, did not exceed $400 million at any time outstanding. The orders also authorized CG&E to apply the proceeds of such short-term borrowings to specified purposes including Money Pool loans. By order dated May 15, 1997 in Case No. 97-362-GE-AIS (Exhibit D-2 hereto), the PUCO authorized CG&E to issue and renew, from time to time through June 30, 1998, unsecured notes, including commercial paper, and other evidences of short-term indebtedness, maturing at periods of not more than 12 months, provided that CG&E's aggregate principal amount of short-term indebtedness, including any short-term indebtedness incurred pursuant to the Ohio Statutory Exemption, does not exceed $400 million at any time outstanding. The order also authorized CG&E to apply the proceeds of such short-term borrowings to specified purposes including Money Pool loans. No other state or federal regulatory agency has jurisdiction over the proposed transactions. Item 5. Procedure Applicants request that the Commission issue and publish by not later than March 28, 1997 the requisite notice under Rule 23 with respect to the filing of this Application-Declaration. Applicants further request that such notice specify a date not later than April 21, 1997 as the date after which the Commission may issue an order granting and permitting to become effective this Application-Declaration, and that the Commission issue such order as soon as practicable thereafter. Applicants waive a recommended decision by a hearing officer or other responsible officer of the Commission; consent that the Staff of the Division of Investment Management may assist in the preparation of the Commission's order; and request that there be no waiting period between the issuance of the Commission's order and its effectiveness. Item 6. Exhibits and Financial Statements (a) Exhibits: A-1 Form of note evidencing borrowings from banks (incorporated by reference from File No. 70-8587). A-2 Form of commercial paper note of PSI (incorporated by reference from File No. 70-8587). A-3 Form of note evidencing borrowings under Money Pool (incorporated by reference from File No. 70-8587). B Form of Money Pool Agreement (incorporated by reference from File No. 70-8587). C Not applicable D-1 Application of CG&E to PUCO (Case No. 97-362-GE-AIS) (filed herewith) D-2 Finding and Order of PUCO (Case No. 97-362-GE-AIS) (filed herewith) E Not applicable F-1 Preliminary opinion of Jerome A. Vennemann, Esq. (filed herewith) F-2 Preliminary opinion of Ronald J. Brothers, Esq. (filed herewith) F-3 Preliminary opinion of David T. Musselman, Esq. (filed herewith) G Form of Federal Register notice (previously filed) (b) Financial Statements: FS-1 Cinergy Consolidated Financial Statements, dated December 31, 1996 (filed herewith) FS-2 Cinergy Financial Statements, dated December 31, 1996 (filed herewith) FS-3 Investments Consolidated Financial Statements, dated December 31, 1996 (filed herewith) FS-4 Cinergy Services Financial Statements, dated December 31, 1996 (filed herewith) FS-5 CG&E Consolidated Financial Statements, dated December 31, 1996 (filed herewith) FS-6 ULH&P Financial Statements, dated December 31, 1996 (filed herewith) FS-7 West Harrison Financial Statements, dated December 31, 1996 (filed herewith) FS-8 Lawrenceburg Financial Statements, dated December 31, 1996 (filed herewith) FS-9 Miami Financial Statements, dated December 31, 1996 (filed herewith) FS-10 Tri-State Financial Statements, dated December 31, 1996 (filed herewith) FS-11 KO Financial Statements, dated December 31, 1996 (filed herewith) FS-12 PSI Consolidated Financial Statements, dated December 31, 1996 (filed herewith) FS-13 Cinergy Consolidated Financial Data Schedule (included as part of electronic submission only) FS-14 Cinergy Financial Data Schedule (included as part of electronic submission only) FS-15 Investments Consolidated Financial Data Schedule (included as part of electronic submission only) FS-16 Cinergy Services Financial Data Schedule (included as part of electronic submission only) FS-17 CG&E Consolidated Financial Data Schedule (included as part of electronic submission only) FS-18 ULH&P Financial Data Schedule (included as part of electronic submission only) FS-19 West Harrison Financial Data Schedule (included as part of electronic submission only) FS-20 Lawrenceburg Financial Data Schedule (included as part of electronic submission only) FS-21 Miami Financial Data Schedule (included as part of electronic submission only) FS-22 Tri-State Financial Data Schedule (included as part of electronic submission only) FS-23 KO Financial Data Schedule (included as part of electronic submission only) FS-24 PSI Consolidated Financial Data Schedule (included as part of electronic submission only) Item 7. Information as to Environmental Effects (a) The Commission's action in this matter will not constitute major federal action significantly affecting the quality of the human environment. (b) No other federal agency has prepared or is preparing an environmental impact statement with regard to the proposed transactions. SIGNATURE Pursuant to the requirements of the Act, the undersigned companies have duly caused this statement to be signed on their behalf by the undersigned thereunto duly authorized. Dated: May 30, 1997 Cinergy Corp. By: /s/ William L. Sheafer Vice President and Treasurer Cinergy Investments, Inc. By: /s/ William L. Sheafer Vice President and Treasurer Cinergy Services, Inc. By: /s/ William L. Sheafer Vice President and Treasurer The Cincinnati Gas & Electric Company By: /s/ William L. Sheafer Vice President and Treasurer The Union Light, Heat and Power Company By: /s/ William L. Sheafer Vice President and Treasurer The West Harrison Gas and Electric Company By: /s/ William L. Sheafer Vice President and Treasurer Lawrenceburg Gas Company By: /s/ William L. Sheafer Vice President and Treasurer Miami Power Corporation By: /s/ William L. Sheafer Vice President and Treasurer Tri-State Improvement Company By: /s/ William L. Sheafer Vice President and Treasurer KO Transmission Company By: /s/ William L. Sheafer Vice President and Treasurer PSI Energy, Inc. By: /s/ William L. Sheafer Vice President and Treasurer ENDNOTES /1/ Any borrowings by Cinergy Services, CG&E, Tri-State and KO from each other under the Money Pool or from the other Money Pool Participants thereunder will be exempt (together with the corresponding loans) pursuant to rule 52. /2/ Cinergy, Cinergy Services, CG&E, Tri-State, KO, PSI, ULH&P, Lawrenceburg, West Harrison and Miami are sometimes herein collectively referred to as the "Money Pool Participants." The August 1995 Order also approved a proposal to establish a similar money pool arrangement for nonutility companies in the Cinergy system ("Nonutility Money Pool"). However, Cinergy has not implemented the Nonutility Money Pool and has no present intention to do so. Cinergy does not seek to continue any authority granted in the August 1995 Order that related to the Nonutility Money Pool, including with respect to combined short-term investments of surplus funds. /3/ See Item 4 with respect to the varying scope of short-term securities issuance jurisdiction exercised by the Kentucky Public Service Commission, the IURC and the PUCO. EX-99.D-1 2 EXHIBIT D-1 Exhibit D-1 File No. 70-9015 BEFORE THE PUBLIC UTILITIES COMMISSION OF OHIO In the Matter of the Application of ) The Cincinnati Gas & Electric Company ) for authority to issue not in excess ) Case No. 97-362-GE-AIS of $400,000,000 at any one time of ) short-term unsecured notes and other ) evidences of indebtedness ) APPLICATION AND STATEMENT OF THE CINCINNATI GAS & ELECTRIC COMPANY To the Honorable The Public Utilities Commission of Ohio: The Cincinnati Gas & Electric Company (CG&E), a public utility as defined in Section 4905.02, Ohio Revised Code, represents the following: 1. At December 31, 1996, CG&E could have borrowed without approval of this Commission a total of $115,128,650 of notes or other evidences of indebtedness payable at periods of not more than 12 months, pursuant to the provisions of Section 4905.401(A), Ohio Revised Code. Par Values of the outstanding securities of CG&E: Long-term Bonds and Notes $1,519,291,159 Preferred Stock $100 Par Value 21,145,600 Common Stock $8.50 Par Value 762,136,231 Total Par Value $2,302,572,990 5% of $2,302,572,990 $ 115,128,650 As of December 31, 1996, CG&E had $30,900,000 of outstanding notes payable with a maturity less than 12 months from date of issuance, $130,000,000 of long-term debt maturing in 1997 and $160,000,000 of long-term debt scheduled for early redemption in 1997. 2. Presently, CG&E has, in accordance with Section 4905.401 Revised Code, the necessary consent and authority of the Commission (Case No. 96-488-GE-AIS) to issue and/or renew its promissory notes and other evidences of indebtedness, including commercial paper, in excess of the statutory exemption in an aggregate principal amount such that its total outstanding short-term indebtedness does not exceed $400,000,000 at any one time through June 30, 1997. CG&E by this application requests an order granting the necessary consent and authority of this Commission, supplementing and replacing such existing authority, to continue to issue and/or renew unsecured short-term notes or other evidences of indebtedness, including commercial paper, in an aggregate principal amount not exceeding $400,000,000 at any one time between the date of an order entered herein and June 30, 1998. 3. CG&E was granted authority (Case No. 95-275-GE-AIS) to enter into and file at the Securities and Exchange Commission (the "SEC") the Cinergy Corp. Utility Money Pool (the "Money Pool"). The purpose of the Money Pool is to assist Cinergy's utility subsidiaries in least-cost financing of their interim capital requirements. By order dated August 25, 1995 (Release No. 35-26362), the SEC granted authority, under the Public Utility Holding Company Act of 1935, to Cinergy and its utility subsidiaries to implement the Money Pool through May 31, 1997. The Money Pool contract, as approved by this Commission in Case No. 95-275-GE-AIS, remains in effect. Cinergy has filed an Application (see Exhibit A attached hereto) to extend the SEC authority for implementation of the Money Pool through December 31, 2002. 4. CG&E proposes to issue the notes in excess of its statutory exemption for the following purposes: discharge or lawful refunding of its obligations including debt and/or preferred stock; necessary acquisitions of property, construction, completion, extension, renewal and improvement of its facilities; improvement of its service; reimbursement of moneys actually expended for the foregoing purposes from its income or from any other moneys in its treasury not secured or obtained from the issue of its stocks, bonds, notes or other evidences of indebtedness; for loans to other participants in the Money Pool; and, for working capital and other general corporate purposes. 5. The terms upon which the unsecured notes and other evidences of indebtedness in excess of its statutory exemption are to be issued are as follows: CG&E intends to borrow under the herein requested authority from banks or other financial institutions on unsecured promissory notes, through the issuance of commercial paper and other evidences of short-term indebtedness, and through participation in the Money Pool referred to above, to afford more latitude in obtaining short-term financing as required. No maturity will be more than 12 months from the date of issuance. The commercial paper will be issued at the going rate of discount on the date of issuance. Unsecured bank notes and other evidences of indebtedness will bear interest at the then prevailing prime rate or the best available rate. 6. CG&E has attached hereto and submits the following exhibits as a part of this application: Exhibit B - Pages 1 and 2. The Cincinnati Gas & Electric Company - Balance Sheet as of December 31, 1996. Exhibit C - The Cincinnati Gas & Electric Company - Income Statement for the 12 Months Ended December 31, 1996. WHEREFORE, The Cincinnati Gas & Electric Company requests that this Commission issue an order finding that: (1) This application was filed under the provisions of Section 4905.401, Revised Code. (2) Pursuant to Section 4905.401, Revised Code, Applicant was permitted to have outstanding notes and other evidences of short-term indebtedness issuable without authority of this Commission (the "Statutory Exemption") in the amount of $115,128,650 as of December 31, 1996. (3) Applicant has existing authority (Case No. 96-488-GE-AIS) to issue not in excess of $400,000,000 at any one time of unsecured notes and other evidences of indebtedness (including commercial paper) through June 30, 1997. Applicant, as of December 31, 1996, had $30,900,000 of short-term debt outstanding with a maturity less than 12 months from date of issuance, $130,000,000 of long-term debt maturing in 1997, and $160,000,000 of long-term debt scheduled for early redemption in 1997. (4) Applicant is requesting consent and authority to issue, reissue and/or renew through June 30, 1998, unsecured notes and other evidences of indebtedness (including commercial paper) payable at periods of less than 12 months, in an aggregate amount of up to $400,000,000 at any one time. Such aggregate amount of short-term indebtedness is to be in addition to any other financing which may be undertaken during the period with the approval of this Commission. (5) The proceeds derived by Applicant from the issuance and renewal of the short-term indebtedness in excess of its Statutory Exemption will be applied by the Applicant for the purposes set forth in Section 4905.40, Revised Code. Such purposes and application of proceeds both being reasonably required by Applicant to meet its present and prospective obligations to provide utility service. (6) The commercial paper will be issued at the going rate of discount on the date of issuance and the unsecured notes and other evidences of indebtedness will bear interest at the then prevailing prime rate or the best available rate. (7) The amount of the issue of such unsecured notes, and other evidences of indebtedness (including commercial paper), and the probable cost thereof are just and reasonable, and the effect of the issuance and cost thereof on present and prospective revenue requirements of the Applicant is dependent upon future interest rates and the extent of utilization of the authority herein requested, neither of which can be accurately predicted at this time. and ordering that: (1) Applicant, The Cincinnati Gas & Electric Company, be, and hereby is, authorized, without further order of this Commission, to issue and/or renew its promissory notes and other evidences of indebtedness maturing at periods of not more than 12 months (including commercial paper) in excess of the statutory exemption in an aggregate amount such that Applicant's total outstanding short-term indebtedness does not exceed $400,000,000 through June 30, 1998. Said amount may be outstanding during such time irrespective of any other financing which the Applicant may undertake with approval of this Commission; (2) The commercial paper will be issued at the going rate of discount on the date of issuance and the unsecured notes and other evidences of indebtedness will bear interest at the then prevailing prime rate or the best available rate; (3) The proceeds derived by Applicant under the authority herein granted shall be applied pursuant to Finding (5) above; (4) Nothing herein contained shall be construed to imply any guaranty or obligation as to said unsecured notes and other evidences of indebtedness (including commercial paper) or the interest thereon on the part of the State of Ohio; (5) The authority herein granted may be exercised from and after the date of an Order. Respectfully submitted this 28th day of March, 1997. THE CINCINNATI GAS & ELECTRIC COMPANY Bradley C. Arnett, Esq. James B. Gainer, Esq. P.O. Box 960 Cincinnati, Ohio 45201 By /s/ J. Wayne Leonard Attorneys for Applicant J. Wayne Leonard Group Vice-President and Chief Financial Officer /s/ William L. Sheafer William L. Sheafer, Treasurer STATE OF OHIO : : SS COUNTY OF HAMILTON : The undersigned J. Wayne Leonard and William L. Sheafer personally appearing before me, a Notary Public, and each being duly sworn says that the facts and allegations contained in the foregoing application and statement are true to the best of his knowledge and belief. /s/ J. Wayne Leonard J. Wayne Leonard /s/ William L. Sheafer William L. Sheafer Sworn to and subscribed before me this 28th day of March, 1997. /s/ Anita M. Schafer Notary Public EX-99.D.2 3 EXHIBIT D-2 BEFORE THE PUBLIC UTILITIES COMMISSION OF OHIO In the Matter of the Application of ) The Cincinnati Gas and Electric ) Company for Authority to Issue not ) Case No. 97-362-GE-AIS in Excess of $400,000,000 at Any ) One Time of Short-Term Unsecured ) Notes and Other Evidences of ) Indebtedness ) FINDING AND ORDER The Commission finds: (1) Applicant, The Cincinnati Gas & Electric Company, is an Ohio Corporation and a public utility as defined in Section 4905.02, Ohio Revised Code, subject to the jurisdiction of this Commission. (2) This Application is filed under provision of Sections 4905.40, 4905.401(A), 4905.41, Ohio Revised Code. (3) Applicant has existing authority (Case No. 96-488-GE-AIS), through June 30, 1997, to issue and/or renew its unsecured notes and other evidences of short-term indebtedness, including commercial paper, maturing for periods of not more than twelve months, provided that the aggregate principal amount of short-term indebtedness will not exceed $400 million at any one time. (4) To supplement and replace such existing authority, Applicant is now requesting Commission authority, through June 30, 1998, to continue to issue and/or renew its unsecured notes and other evidences of short-term indebtedness, including commercial paper maturing for periods of not more than twelve months, in an aggregate principal amount not to exceed $400 million at any one time. (5) Pursuant to Section 4905.401, Revised Code, Applicant was permitted to have outstanding notes and other evidences of short-term indebtedness issuable without prior authority of this Commission (the "Statutory Exemption") in the amount of $115 million. Applicant had about $50 million of short-term debt outstanding, as of March 31, 1997. (6) The proceeds from the issuance of the short-term debt will be used to refund Applicant's obligations, including high-cost debt or preferred stock, temporarily finance its construction program, to acquire property and for loans to other participants in the Cinergy Utility Money Pool (authorization from this Commission to issue and acquire promissory notes in connection with the Utility Money Pool was rendered in Case No. 95-275-GE-AIS) and for working capital and other general corporate purposes. (7) Based on information contained in the Application and exhibits thereto, the purposes for which the proceeds from the issuance of the short-term debt will be applied appear to (sic) reasonably required for the Applicant's lawful capital purposes, and the Commission is satisfied that consent and authority should be granted accordingly. It is, therefore, ORDERED, That The Cincinnati Gas & Electric Company is hereby authorized, through June 30, 1998, to issue and/or renew unsecured notes, including commercial paper, and other evidences of short-term indebtedness, maturing at periods of not more than twelve months, provided that Applicant's aggregate principal amount of short-term indebtedness, including the Statutory Exemption, does not exceed $400 million at any one time. It is, further, ORDERED, That the proceeds derived by the Applicant under the authority granted herein shall be applied for the purposes specified in this Order, or otherwise pursuant to the provisions of Section 4905.401, Revised Code. It is, further, ORDERED, That the authorization granted by this Order shall not be construed as limiting the Commission's determination of the appropriateness of Applicant's future long-term security offerings. It is, further, ORDERED, That nothing in this Order shall be construed to imply any guaranty or obligation by as to the unsecured notes or other evidences of indebtedness, or the associated interest, on the part of the State of Ohio. It is, further, ORDERED, That nothing in this Order shall be construed to imply any guaranty or obligation by the Commission to ensure completion of any specific construction project of the Applicant. It is, further, ORDERED, That nothing in this Order shall be deemed to be binding upon this Commission in any future proceeding or investigation involving the justness or reasonableness of any rate, charge, rule or regulation. It is, further, ORDERED, That a copy of this Order be served upon all parties of record. THE PUBLIC UTILITIES COMMISSION OF OHIO /s/ Crag A. Glazer, Chairman /s/Jolynn Barry Butler /s/Ronda Hartman Fergus /s/David W. Johnson /s/Judith A. Jones SEJ:dj EX-99.F-1 4 EXHIBIT F-1 EXHIBIT F-1 May 15, 1997 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Cinergy Corp., et al./ File No. 70-9015 Ladies and Gentlemen: I am Associate General Counsel of Cinergy Corp. ("Cinergy"), a Delaware corporation and registered holding company under the Public Utility Holding Company Act of 1935, as amended (the "Act") and am furnishing this opinion as an exhibit to the Application-Declaration on Form U-1 in the above docket, as previously amended and as proposed to be further amended by Amendment No. 2 thereto filed herewith (such amended statement, including any further amendments, if any, thereto, the "Application"), filed by Cinergy and certain of its direct and indirect subsidiary companies namely, Cinergy Investments, Inc. ("Investments"), Cinergy Services, Inc. ("Cinergy Services"), The Cincinnati Gas & Electric Company ("CG&E"), The Union Light, Heat and Power Company ("ULH&P"), The West Harrison Gas and Electric Company ("West Harrison"), Lawrenceburg Gas Company ("Lawrenceburg"), Miami Power Corporation ("Miami"), Tri-State Improvement Company ("Tri-State"), KO Transmission Company ("KO") and PSI Energy, Inc. ("PSI" and, collectively with the aforementioned companies, the "Applicants"). Capitalized terms used herein but not defined herein have the respective meanings assigned thereto in the Application. In the Application, Applicants request authority to engage in the following transactions (collectively, "Proposed Transactions"), in each case through December 31, 2002: (1) in connection with the continued use of the Money Pool, (a) PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to make loans to and incur borrowings from one another thereunder, and (b) Cinergy, Cinergy Services, CG&E, Tri-State and KO propose to make loans to PSI, ULH&P, Lawrenceburg, West Harrison and Miami thereunder; (2) PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to incur short-term bank borrowings and PSI proposes to issue and sell commercial paper; and (3) Cinergy and Investments propose to guarantee (each, a "Guarantee") the debt or other obligations of (a) certain existing Cinergy system companies and (b) companies whose securities may be acquired by Cinergy or any subsidiary thereof from time to time pursuant to rule 58 under the Act. In connection with this opinion, I have reviewed the Application and such other documents, records and other materials as I have deemed necessary or appropriate in order to render this opinion. I am a member of the Bar of the State of Ohio and do not purport to be an expert on the laws of any other jurisdiction. I have also examined the Delaware General Corporation Law ("DGCL") to the extent necessary to express the opinions set forth herein. The opinions expressed below are limited solely to matters governed by the laws of the State of Ohio and the DGCL. Based upon and subject to the foregoing, and assuming that the Proposed Transactions are carried out (i) in accordance with the Application and the Commission's order to be issued granting and permitting the Application to become effective and (ii) in accordance with all other requisite approvals and authorizations, regulatory, corporate or otherwise, I am of the opinion that: (a) Cinergy and Investments are validly incorporated and duly existing under the laws of the State of Delaware. (b) All state laws applicable to the Proposed Transactions will have been complied with. (c) With reference to transactions under the Money Pool, Cinergy, Cinergy Services, CG&E and Tri-State will legally acquire any promissory notes or other evidences of indebtedness to be issued to either of them by any borrowing Applicant in exchange for loans to such Applicant thereunder. (d) Any Guarantees to be issued by Cinergy or Investments will be valid and binding contingent obligations of Cinergy or Investments, as the case may be, in each case enforceable in accordance with the terms thereof, except to the extent such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally or by applicable principles of equity (regardless of whether such enforceability is sought in a proceeding at law or in equity). (e) the consummation of the proposed transactions will not violate the legal rights of the holders of any securities issued by Cinergy, Investments, Cinergy Services, CG&E, Tri-State or any associate company thereof I hereby consent to the use of this opinion in connection with the Application. Very truly yours, /s/ Jerome A. Vennemann Associate General Counsel EX-99.F-2 5 EXHIBIT F-2 EXHIBIT F-2 May 15, 1997 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Cinergy Corp., et al./ File No. 70-9015 Ladies and Gentlemen: I am Senior Counsel of Cinergy Corp. ("Cinergy"), a Delaware corporation and registered holding company under the Public Utility Holding Company Act of 1935, as amended (the "Act") and am furnishing this opinion as an exhibit to the Application-Declaration on Form U-1 in the above docket, as previously amended and as proposed to be further amended by Amendment No. 2 thereto filed herewith (such amended statement, including any further amendments, if any, thereto, the "Application"), filed by Cinergy and certain of its direct and indirect subsidiary companies namely, Cinergy Investments, Inc. ("Investments"), Cinergy Services, Inc. ("Cinergy Services"), The Cincinnati Gas & Electric Company ("CG&E"), The Union Light, Heat and Power Company ("ULH&P"), The West Harrison Gas and Electric Company ("West Harrison"), Lawrenceburg Gas Company ("Lawrenceburg"), Miami Power Corporation ("Miami"), Tri-State Improvement Company ("Tri-State"), KO Transmission Company ("KO") and PSI Energy, Inc. ("PSI" and, collectively with the aforementioned companies, the "Applicants"). Capitalized terms used herein but not defined herein have the respective meanings assigned thereto in the Application. In the Application, Applicants request authority to engage in the following transactions (collectively, "Proposed Transactions"), in each case through December 31, 2002: (1) in connection with the continued use of the Money Pool, (a) PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to make loans to and incur borrowings from one another thereunder, and (b) Cinergy, Cinergy Services, CG&E, Tri-State and KO propose to make loans to PSI, ULH&P, Lawrenceburg, West Harrison and Miami thereunder; (2) PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to incur short-term bank borrowings and PSI proposes to issue and sell commercial paper; and (3) Cinergy and Investments propose to guarantee the debt or other obligations of (a) certain existing Cinergy system companies and (b) companies whose securities may be acquired by Cinergy or any subsidiary thereof from time to time pursuant to rule 58 under the Act. In connection with this opinion, I have reviewed the Application and such other documents, records and other materials as I have deemed necessary or appropriate in order to render this opinion. I am a member of the Bar of the Commonwealth of Kentucky and the opinions expressed below are limited solely to matters governed by the laws of such Commonwealth. Based upon and subject to the foregoing, and assuming that the Proposed Transactions are carried out (i) in accordance with the Application and the Commission's order to be issued granting and permitting the Application to become effective and (ii) in accordance with all other requisite approvals and authorizations, regulatory, corporate or otherwise, I am of the opinion that: a. ULH&P and KO are validly incorporated and duly existing under the laws of the Commonwealth of Kentucky. b. All state laws applicable to the Proposed Transactions will have been complied with. c. With reference to transactions under the Money Pool, ULH&P and KO will legally acquire any promissory notes or other evidences of indebtedness to be issued to either of them by any borrowing Applicant in exchange for loans to such Applicant thereunder. d. All notes or other evidences of indebtedness to be issued by ULH&P pursuant to the Proposed Transactions, whether in connection with short-term borrowings under the Money Pool or from banks, will be valid and binding obligations of ULH&P enforceable in accordance with the terms thereof, except to the extent such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally or by applicable principles of equity (regardless of whether such enforceability is sought in a proceeding at law or in equity). e. the consummation of the proposed transactions will not violate the legal rights of the holders of any securities issued by ULH&P or KO or any associate company thereof. I hereby consent to the use of this opinion in connection with the Application. Very truly yours, /s/ David T. Musselman Senior Counsel EX-99.F-3 6 EXHIBIT F-3 EXHIBIT F-3 May 15, 1997 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Cinergy Corp., et al./ File No. 70-9015 Ladies and Gentlemen: I am Associate General Counsel of Cinergy Corp. ("Cinergy"), a Delaware corporation and registered holding company under the Public Utility Holding Company Act of 1935, as amended (the "Act") and am furnishing this opinion as an exhibit to the Application-Declaration on Form U-1 in the above docket, as previously amended and as proposed to be further amended by Amendment No. 2 thereto filed herewith (such amended statement, including any further amendments, if any, thereto, the "Application") filed by Cinergy and certain of its direct and indirect subsidiary companies namely, Cinergy Investments, Inc. ("Investments"), Cinergy Services, Inc. ("Cinergy Services"), The Cincinnati Gas & Electric Company ("CG&E"), The Union Light, Heat and Power Company ("ULH&P"), The West Harrison Gas and Electric Company ("West Harrison"), Lawrenceburg Gas Company ("Lawrenceburg"), Miami Power Corporation ("Miami"), Tri-State Improvement Company ("Tri-State"), KO Transmission Company ("KO") and PSI Energy, Inc. ("PSI" and, collectively with the aforementioned companies, the "Applicants"). Capitalized terms used herein but not defined herein have the respective meanings assigned thereto in the Application. In the Application, Applicants request authority to engage in the following transactions (collectively, "Proposed Transactions"), in each case through December 31, 2002: (1) in connection with the continued use of the Money Pool, (a) PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to make loans to and incur borrowings from one another thereunder, and (b) Cinergy, Cinergy Services, CG&E, Tri-State and KO propose to make loans to PSI, ULH&P, Lawrenceburg, West Harrison and Miami thereunder; (2) PSI, ULH&P, Lawrenceburg, West Harrison and Miami propose to incur short-term bank borrowings and PSI proposes to issue and sell commercial paper; and (3) Cinergy and Investments propose to guarantee (each, a "Guarantee") the debt or other obligations of (a) certain existing Cinergy system companies and (b) companies whose securities may be acquired by Cinergy or any subsidiary thereof from time to time pursuant to and in accordance with rule 58 under the Act. In connection with this opinion, I have reviewed the Application and such other documents, records and other materials as I have deemed necessary or appropriate in order to render this opinion. I am a member of the Bar of the State of Indiana and the opinions expressed below are limited solely to matters governed by the laws of such State. Based upon and subject to the foregoing, and assuming that the Proposed Transactions are carried out (i) in accordance with the Application and the Commission's order to be issued granting and permitting the Application to become effective and (ii) in accordance with all other requisite approvals and authorizations, regulatory, corporate or otherwise, I am of the opinion that: a. PSI, Lawrenceburg, West Harrison and Miami are validly incorporated and duly existing under the laws of the State of Indiana. b. All state laws applicable to the Proposed Transactions will have been complied with. c. With reference to transactions under the Money Pool, PSI, Lawrenceburg, West Harrison and Miami will legally acquire any promissory notes or other evidences of indebtedness to be issued to either of them by any borrowing Applicant in exchange for loans to such Applicant thereunder. d. All notes or other evidences of indebtedness to be issued by PSI, Lawrenceburg, West Harrison and Miami pursuant to the Proposed Transactions, whether in connection with short-term borrowings under the Money Pool or from banks or, in PSI's case, the issuance of commercial paper, will be valid and binding obligations of PSI, Lawrenceburg, West Harrison or Miami, as the case may be, in each case enforceable in accordance with the terms thereof, except to the extent such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally or by applicable principles of equity (regardless of whether such enforceability is sought in a proceeding at law or in equity). e. the consummation of the proposed transactions will not violate the legal rights of the holders of any securities issued by PSI, Lawrenceburg, West Harrison or Miami or any associate company thereof. I hereby consent to the use of this opinion in connection with the Application. Very truly yours, /s/ Ronald J. Brothers Associate General Counsel EX-99.FS.1 7 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 CINERGY CORP. CONSOLIDATED AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
CINERGY CORP. PRO FORMA CONSOLIDATED STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands, except per share amounts) OPERATING REVENUES Electric ......................................................... $ 2,768,706 $ -- $ 2,768,706 Gas .............................................................. 474,034 -- 474,034 ----------- ----------- ----------- 3,242,740 -- 3,242,740 OPERATING EXPENSES Fuel used in electric production ................................. 713,250 -- 713,250 Gas purchased .................................................... 249,116 -- 249,116 Purchased and exchanged power .................................... 158,838 -- 158,838 Other operation .................................................. 598,434 -- 598,434 Maintenance ...................................................... 193,908 -- 193,908 Depreciation ..................................................... 282,763 -- 282,763 Amortization of phase-in deferrals ............................... 13,598 -- 13,598 Post-in-service deferred operating expenses - net ................................................... (1,509) -- (1,509) Income taxes ..................................................... 218,269 -- 218,269 Taxes other than income taxes .................................... 257,815 -- 257,815 ----------- ----------- ----------- 2,684,482 -- 2,684,482 OPERATING INCOME ................................................. 558,258 -- 558,258 OTHER INCOME AND EXPENSES - NET Allowance for equity funds used during construction ..................................................... 1,225 -- 1,225 Post-in-service carrying costs ................................... 1,223 -- 1,223 Phase-in deferred return ......................................... 8,372 -- 8,372 Equity in earnings of unconsolidated subsidiary .................. 25,430 -- 25,430 Income taxes ..................................................... 19,536 5,481 25,017 Other - net ...................................................... (40,464) -- (40,464) ----------- ----------- ----------- 15,322 5,481 20,803 INCOME BEFORE INTEREST AND OTHER CHARGES ......................... 573,580 5,481 579,061 INTEREST AND OTHER CHARGES Interest on long-term debt ....................................... 190,617 -- 190,617 Other interest ................................................... 31,169 15,660 46,829 Allowance for borrowed funds used during construction .............................................. (6,183) -- (6,183) Preferred dividend requirements of subsidiaries ..................................................... 23,180 -- 23,180 ----------- ----------- ----------- 238,783 15,660 254,443 NET INCOME ....................................................... $ 334,797 $ (10,179) $ 324,618 COSTS OF REACQUISITION OF PREFERRED STOCK OF SUBSIDIARY .............................................. (18,391) -- (18,391) ----------- ----------- ----------- NET INCOME APPLICABLE TO COMMON STOCK ............................ $ 316,406 $ (10,179) $ 306,227 AVERAGE COMMON SHARES OUTSTANDING ................................ 157,678 157,678 EARNINGS PER COMMON SHARE Net Income ....................................................... $ 2.12 $ (0.06) $ 2.06 Costs of reacquisition of preferred stock of subsidiary .................................................... (0.12) -- (0.12) ----------- ----------- ----------- Net Income Applicable to Common Stock ............................ $ 2.00 $ (0.06) $ 1.94 DIVIDENDS DECLARED PER COMMON SHARE .............................. $ 1.74
CINERGY CORP. PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) UTILITY PLANT - ORIGINAL COST In service Electric ......................................................... $8,809,786 $ -- $8,809,786 Gas .............................................................. 713,829 -- 713,829 Common ........................................................... 185,255 -- 185,255 ---------- ---------- ---------- 9,708,870 -- 9,708,870 Accumulated depreciation ......................................... 3,591,858 -- 3,591,858 ---------- ---------- ---------- 6,117,012 -- 6,117,012 Construction work in progress .................................... 172,614 -- 172,614 ---------- ---------- ---------- Total utility plant .............................................. 6,289,626 -- 6,289,626 CURRENT ASSETS Cash and temporary cash investments .............................. 19,327 261,006 280,333 Restricted deposits .............................................. 1,721 -- 1,721 Accounts receivable less accumulated provision for doubtful accounts of $10,618 ....................... 199,361 -- 199,361 Materials, supplies and fuel - - at average cost Fuel for use in electric production .............................. 71,730 -- 71,730 Gas stored for current use ....................................... 32,951 -- 32,951 Other materials and supplies ..................................... 80,292 -- 80,292 Property taxes applicable to subsequent year ..................... 123,580 -- 123,580 Prepayments and other ............................................ 37,049 -- 37,049 ---------- ---------- ---------- 566,011 261,006 827,017 OTHER ASSETS Regulatory Assets Amounts due from customers - income taxes ........................ 377,194 -- 377,194 Post-in-service carrying costs and deferred operating expenses ...................................... 186,396 -- 186,396 Coal contract buyout costs ....................................... 138,171 138,171 Deferred demand-side management costs ............................ 134,742 -- 134,742 Phase-in deferred return and depreciation ........................ 95,163 -- 95,163 Deferred merger costs ............................................ 93,999 -- 93,999 Unamortized costs of reacquiring debt ............................ 70,518 -- 70,518 Other ............................................................ 72,483 -- 72,483 Investment in unconsolidated subsidiary .......................... 592,660 592,660 Other ............................................................ 231,551 -- 231,551 ---------- ---------- ---------- 1,992,877 -- 1,992,877 $8,848,514 $ 261,006 $9,109,520
CINERGY CORP. PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - $.01 par value; Authorized shares - 600,000,000 Outstanding shares - 157,679,129 Actual ....................... $ 1,577 $ -- $ 1,577 Paid-in capital ............................................... 1,590,735 -- 1,590,735 Retained earnings ............................................. 992,273 (10,179) 982,094 Cumulative foreign currency translation adjustment .................................................... (131) -- (131) ----------- ----------- ----------- Total common stock equity ..................................... 2,584,454 (10,179) 2,574,275 CUMULATIVE PREFERRED STOCK OF SUBSIDIARIES Not subject to mandatory redemption ........................... 194,232 -- 194,232 LONG-TERM DEBT ................................................ 2,534,978 -- 2,534,978 ----------- ----------- ----------- Total capitalization .......................................... 5,313,664 (10,179) 5,303,485 CURRENT LIABILITIES Long-term debt due within one year ............................ 140,000 -- 140,000 Notes payable ................................................. 713,617 261,006 974,623 Accounts payable .............................................. 305,420 -- 305,420 Litigation settlement ......................................... -- -- -- Accrued taxes ................................................. 323,059 (5,481) 317,578 Accrued interest .............................................. 55,590 15,660 71,250 Other ......................................................... 114,653 -- 114,653 1,652,339 271,185 1,923,524 OTHER LIABILITIES Deferred income taxes ......................................... 1,146,263 -- 1,146,263 Unamortized investment tax credits ............................ 175,935 -- 175,935 Accrued pension and other postretirement benefit costs ................................................. 263,319 -- 263,319 Other ......................................................... 296,994 -- 296,994 ----------- ----------- ----------- 1,882,511 -- 1,882,511 $ 8,848,514 $ 261,006 $ 9,109,520
CINERGY CORP. PRO FORMA CONSOLIDATED STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 ......................................... $ 950,216 $ -- $ 950,216 Net income ........................................................ 334,797 (10,179) 324,618 Dividends on common stock ......................................... (274,358) -- (274,358) Costs of reacquisition of preferred stock of subsidiary ..................................................... (18,391) -- (18,391) Other ............................................................. 9 -- 9 --------- -------- --------- BALANCE DECEMBER 31, 1996 ......................................... $ 992,273 $(10,179) $ 982,094
CINERGY CORP. Pro Forma Consolidated Journal Entries to Give Effect to the Borrowing of Up to $453,300,000 from Banks Entry No. 1 Cash and temporary cash investments $261,005,933 Notes payable $261,005,933 To record the issuance of notes payable of The Union Light, Heat, and Power Company, The West Harrison Gas and Electric Company, Lawrenceburg Gas Company, Miami Power Corporation, and PSI Energy, Inc. net of $147,129,000 of notes payable outstanding as of December 31, 1996. Entry No. 2 Other interest $ 15,660,356 Accrued interest $ 15,660,356 To record interest on $261,005,933 of notes payable at 6% per annum. Entry No. 3 Accrued taxes $ 5,481,125 Income taxes $ 5,481,125 To record the reduction in income taxes due to increased interest expense on notes payable. ($15,660,356 at an assumed tax rate of 35%). EX-99.FS.1 8 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 CINERGY INVESTMENTS, INC. CONSOLIDATED AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
CINERGY INVESTMENTS, INC. PRO FORMA CONSOLIDATED STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands) OTHER INCOME AND EXPENSES - NET Equity in earnings of unconsolidated subsidiary ....................... $ 25,430 $ -- $ 25,430 Income taxes .......................................................... 7,537 -- 7,537 Other - net ........................................................... (13,994) -- (13,994) -------- ------- -------- 18,973 -- 18,973 INCOME BEFORE INTEREST ................................................ 18,973 -- 18,973 INTEREST .............................................................. 1,308 -- 1,308 NET INCOME ............................................................ $ 17,665 $ -- $ 17,665 Note: Cinergy Investments, Inc. has no pro forma consolidated journal entries relating to this proposed transaction.
CINERGY INVESTMENTS, INC. PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) CURRENT ASSETS Cash and temporary cash investments .............................. $ 682 $ -- $ 682 Accounts receivable less accumulated provision for doubtful accounts of $171 .......................... 6,579 -- 6,579 Accounts receivable from affiliated companies ........................................................ 19,005 -- 19,005 Other materials and supplies ..................................... 1 -- 1 Prepayments and other ............................................ 432 -- 432 -------- -------- -------- 26,699 -- 26,699 OTHER ASSETS Investment in unconsolidated subsidiary .......................... 592,660 -- 592,660 Other ............................................................ 7,391 -- 7,391 -------- -------- -------- 600,051 -- 600,051 $626,750 $ -- $626,750 Note: Cinergy Investments, Inc. has no pro forma journal entries relating to this proposed transaction.
CINERGY INVESTMENTS, INC. PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - $.01 par value; Authorized shares - 100; Outstanding shares - 100 Actual .................................. $ -- $ -- $ -- Paid-in capital .................................................. 515,473 -- 515,473 Retained earnings ................................................ 15,715 -- 15,715 Cumulative foreign currency translation adjustment ....................................................... (131) -- (131) --------- --------- --------- Total common stock equity ........................................ 531,057 -- 531,057 CURRENT LIABILITIES Notes payable .................................................... 27,000 -- 27,000 Accounts payable ................................................. 10,459 -- 10,459 Accrued taxes .................................................... (982) -- (982) Other ............................................................ 65,355 -- 65,355 --------- --------- --------- 101,832 -- 101,832 OTHER LIABILITIES Deferred income taxes ............................................ (6,678) -- (6,678) Other ............................................................ 539 -- 539 --------- --------- --------- (6,139) -- (6,139) $ 626,750 $ -- $ 626,750 Note: Cinergy Investments, Inc. has no pro forma journal entries relating to this proposed transaction.
CINERGY INVESTMENTS, INC. PRO FORMA CONSOLIDATED STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 .................................. $ (1,950) $ -- $ (1,950) Net income ................................................. 17,665 -- 17,665 -------- ------ -------- BALANCE DECEMBER 31, 1996 .................................. $ 15,715 $ -- $ 15,715 Note: Cinergy Investments, Inc. has no pro forma journal entries relating to this proposed transaction.
EX-99.FS.1 9 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 MIAMI POWER CORPORATION AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
MIAMI POWER CORPORATION PRO FORMA STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands, except per share amounts) ELECTRIC OPERATING REVENUES Affiliated companies .................................................... $39 $-- $39 OPERATING EXPENSES Other operation ......................................................... 16 -- 16 Maintenance ............................................................. 1 -- 1 Depreciation ............................................................ 1 -- 1 Income taxes ............................................................ 6 -- 6 Taxes other than income taxes ........................................... 6 -- 6 --- ---- --- 30 -- 30 OPERATING INCOME ........................................................ 9 -- 9 OTHER INCOME AND EXPENSES - NET ......................................... -- 2 2 --- ---- --- INCOME BEFORE INTEREST .................................................. 9 2 11 INTEREST ................................................................ -- 6 6 --- ---- --- NET INCOME .............................................................. $ 9 $ (4) $ 5
MIAMI POWER CORPORATION PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) ELECTRIC UTILITY PLANT - ORIGINAL COST In service ................................................................ $564 $-- $564 Accumulated depreciation .................................................. 555 -- 555 ---- ---- ---- Total electric utility plant .............................................. 9 -- 9 CURRENT ASSETS Cash ...................................................................... 67 100 167 Accounts receivable from affiliated companies ............................. 1 -- 1 ---- ---- ---- 68 100 168 $ 77 $100 $177
MIAMI POWER CORPORATION PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - without par value; $1 stated value Authorized shares - 10,000 Outstanding shares - 1,000 Actual ......................................... $ 1 $-- $ 1 Retained earnings (deficit) ............................................... (6) (4) (10) ----- ----- ----- Total capitalization ...................................................... (5) (4) (9) CURRENT LIABILITIES Notes payable ............................................................. -- 100 100 Accounts payable to affiliated companies .................................. 75 -- 75 Accrued taxes ............................................................. 2 (2) (0) Accrued interest .......................................................... -- 6 6 ----- ----- ----- 77 104 181 OTHER LIABILITIES Deferred income taxes ..................................................... (32) -- (32) Accrued pension and other postretirement benefit costs ............................................................. 4 -- 4 Other ..................................................................... 33 -- 33 ----- ----- ----- 5 -- 5 $ 77 $ 100 $ 177
MIAMI POWER CORPORATION PRO FORMA STATEMENT OF CHANGES IN RETAINED EARNINGS (DEFICIT) YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 ...................................... $ 15 $-- $ 15 Net income ..................................................... 9 (4) 5 Dividends on common stock ...................................... (30) -- (30) ---- --- ---- BALANCE DECEMBER 31, 1996 ...................................... $ (6) $(4) (10)
MIAMI POWER CORPORATION Pro Forma Journal Entries to Give Effect to the Borrowing of Up to $100,000 from Banks Entry No. 1 Cash $100,000 Notes payable $100,000 To record the issuance of $100,000 of notes payable. Entry No. 2 Interest $ 6,000 Accrued interest $ 6,000 To record interest on $100,000 of notes payable at 6% per annum. Entry No. 3 Accrued taxes $ 2,100 Income taxes $ 2,100 To record the reduction in income taxes due to increased interest expense on notes payable. ($6,000 at an assumed tax rate of 35%). EX-99.FS.1 10 FINANCIAL STATEMENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 PSI ENERGY, INC. CONSOLIDATED AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
PSI ENERGY, INC. PRO FORMA CONSOLIDATED STATEMENT OF INCOME TWELVE MONTHS ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands) OPERATING REVENUES Non-affiliated companies ................................... $ 1,309,878 $ -- $ 1,309,878 Affiliated companies ....................................... 22,084 -- 22,084 ----------- ----------- ----------- $ 1,331,962 $ -- $ 1,331,962 OPERATING EXPENSES Fuel ....................................................... 364,053 -- 364,053 Purchased and exchanged power Non-affiliated companies ................................... 112,505 -- 112,505 Affiliated companies ....................................... 43,343 -- 43,343 Other operation ............................................ 268,478 -- 268,478 Maintenance ................................................ 97,703 -- 97,703 Depreciation ............................................... 121,812 -- 121,812 Post-in-service deferred operating expenses - net ............................................. (4,799) -- (4,799) Income taxes ............................................... 73,194 -- 73,194 Taxes other than income taxes .............................. 49,911 -- 49,911 ----------- ----------- ----------- 1,126,200 -- 1,126,200 OPERATING INCOME ........................................... 205,762 -- 205,762 OTHER INCOME AND EXPENSES - NET Allowance for equity funds used during construction ............................................... -- -- -- Post-in-service carrying costs ............................. 1,223 -- 1,223 Income taxes ............................................... (3,997) 5,033 1,036 Other - net ................................................ 1,878 -- 1,878 ----------- ----------- ----------- (896) 5,033 4,137 INCOME BEFORE INTEREST ..................................... 204,866 5,033 209,899 INTEREST Interest on long-term debt ................................. 67,001 -- 67,001 Other interest ............................................. 14,511 14,381 28,892 Allowance for borrowed funds used during construction ........................................ (2,324) -- (2,324) ----------- ----------- ----------- 79,188 14,381 93,569 NET INCOME ................................................. 125,678 (9,348) 116,330 PREFERRED DIVIDEND REQUIREMENT ............................. 12,537 -- 12,537 ----------- ----------- ----------- NET INCOME APPLICABLE TO COMMON STOCK ...................... $ 113,141 $ (9,348) $ 103,793
PSI ENERGY, INC. PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (in thousands) ELECTRIC UTILITY PLANT - ORIGINAL COST In service ....................................................... $4,178,181 $ -- $4,178,181 Accumulated depreciation ......................................... 1,723,279 -- 1,723,279 ---------- ---------- ---------- 2,454,902 -- 2,454,902 Construction work in progress .................................... 76,630 -- 76,630 ---------- ---------- ---------- Total utility plant .............................................. 2,531,532 -- 2,531,532 CURRENT ASSETS Cash and temporary cash investments .............................. 2,911 239,688 242,599 Restricted deposits .............................................. 550 -- 550 Notes receivable from affiliated companies ....................... 3 -- 3 Accounts receivable less accumulated provision for doubtful accounts of $1,269 ........................ 74,289 -- 74,289 Accounts receivable from affiliated companies .................... 4,016 -- 4,016 Materials, supplies and fuel - - at average cost Fuel ............................................................. 41,865 -- 41,865 Other materials and supplies ..................................... 28,268 -- 28,268 Prepayments and other ............................................ 3,184 -- 3,184 ---------- ---------- ---------- 155,086 239,688 394,774 OTHER ASSETS Regulatory assets Amounts due from customers - income taxes ........................ 33,068 -- 33,068 Post-in-service carrying costs and deferred operating expenses ...................................... 44,904 -- 44,904 Coal contract buyout costs ....................................... 138,171 -- 138,171 Deferred demand-side management costs ............................ 101,208 -- 101,208 Deferred merger costs ............................................ 76,290 -- 76,290 Unamortized costs of reacquiring debt ............................ 32,079 -- 32,079 Other ............................................................ 52,938 -- 52,938 Other ............................................................ 129,667 -- 129,667 608,325 -- 608,325 $3,294,943 $ 239,688 $3,534,631
PSI ENERGY, INC. PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - without par value; $.01 stated value; Authorized shares - 60,000,000 Outstanding shares -53,913,701 Actual .......................... $ 539 $ -- $ 539 Paid-in capital ................................................ 402,947 -- 402,947 Retained earnings .............................................. 626,089 (9,348) 616,741 ---------- ----------- ---------- Total common stock equity ...................................... 1,029,575 (9,348) 1,020,227 CUMULATIVE PREFERRED STOCK Not subject to mandatory redemption ............................ 173,086 -- 173,086 LONG-TERM DEBT ................................................. 969,870 -- 969,870 ---------- ----------- ---------- Total capitalization ........................................... 2,172,531 (9,348) 2,163,183 CURRENT LIABILITIES Long-term debt due within one year ............................. 10,000 -- 10,000 Notes payable .................................................. 147,129 239,688 386,817 Notes payable to affiliated companies .......................... 13,186 -- 13,186 Accounts payable ............................................... 114,330 -- 114,330 Accounts payable to affiliated companies ....................... 12,850 -- 12,850 Accrued taxes .................................................. 73,206 (5,033) 68,173 Accrued interest ............................................... 24,045 14,381 38,426 Other .......................................................... 17,107 -- 17,107 ---------- ----------- ---------- 411,853 249,036 660,889 OTHER LIABILITIES Deferred income taxes .......................................... 372,997 -- 372,997 Unamortized investment tax credits ............................. 52,750 -- 52,750 Accrued pension and other postretirement benefit costs .................................................. 98,037 -- 98,037 Other .......................................................... 186,775 -- 186,775 ---------- ----------- ---------- 710,559 -- 710,559 $3,294,943 $ 239,688 $3,534,631
PSI ENERGY, INC. PRO FORMA CONSOLIDATED STATEMENT OF CHANGES IN RETAINED EARNINGS TWELVE MONTHS ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands) BALANCE DECEMBER 31, 1995 ................................. $ 625,275 $ -- $ 625,275 Net income ................................................ 125,678 (9,348) 116,330 Dividends on preferred stock .............................. (12,629) -- (12,629) Dividends on common stock ................................. (112,076) -- (112,076) Other ..................................................... (159) -- (159) --------- ------- --------- BALANCE DECEMBER 31, 1996 ................................. $ 626,089 $(9,348) $ 616,741
PSI ENERGY, INC. Pro Forma Consolidated Journal Entries to Give Effect to the Borrowing of Up to $400 Million from Banks Entry No. 1 Cash $239,688,000 Notes payable $239,688,000 To record the issuance of notes payable net of $160,312,000 of notes receivable from affiliated companies and all notes payable as of December 31, 1996. Entry No. 2 Other interest $ 14,381,280 Accrued interest $ 14,381,280 To record interest on $239,688,933 of notes payable at 6% per annum. Entry No. 3 Accrued taxes $ 5,033,448 Income taxes $ 5,033,448 To record the reduction in income taxes due to increased interest expense on notes payable. ($14,381,280 at an assumed tax rate of 35%). EX-99.FS.1 11 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 CINERGY SERVICES, INC. AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 5
CINERGY SERVICES, INC. PRO FORMA STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands) OPERATING REVENUES ......................................... $ 615,348 $ -- $ 615,348 OPERATING EXPENSES Other operation ............................................ 603,158 -- 603,158 Depreciation ............................................... 157 -- 157 Taxes other than income taxes .............................. 11,158 -- 11,158 --------- --------- --------- 614,473 -- 614,473 OPERATING INCOME ........................................... 875 -- 875 OTHER INCOME AND EXPENSES - NET Other - net ................................................ (93) -- (93) --------- --------- --------- (93) -- (93) INCOME BEFORE INTEREST ..................................... 782 -- 782 INTEREST Other interest ............................................. 569 -- 569 --------- --------- --------- 569 -- 569 NET INCOME ................................................. $ 213 $ -- $ 213 Note: Cinergy Services has no pro forma journal entries relating to this proposed transaction.
CINERGY SERVICES, INC. PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) CURRENT ASSETS Cash and temporary cash investments .............................. $ 7,009 $ -- $ 7,009 Accounts receivable .............................................. 477 -- 477 Accounts receivable from affiliated companies ........................................................ 14,357 -- 14,357 ------- ------- ------- 21,843 -- 21,843 OTHER ASSETS Other ............................................................ 6,949 -- 6,949 ------- ------- ------- 6,949 -- 6,949 $28,792 $ -- $28,792 Note: Cinergy Services has no pro forma journal entries relating to this proposed transaction.
CINERGY SERVICES, INC. PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - $.05 par value; Authorized shares - 50 Outstanding shares - 50 Actual ............................... $ -- $ -- $ -- Retained earnings ............................................ -- -- -- -------- ------- -------- Total common stock equity .................................... -- -- -- CURRENT LIABILITIES Notes payable to affiliated companies .................................................... 18,489 -- 18,489 Accounts payable ............................................. 10,963 -- 10,963 Accounts payable to affiliated companies .................................................... 1,840 -- 1,840 Accrued taxes ................................................ (2,567) -- (2,567) -------- ------- -------- 28,725 -- 28,725 OTHER LIABILITIES Deferred income taxes ........................................ 67 -- 67 -------- ------- -------- 67 -- 67 $ 28,792 $ -- $ 28,792 Note: Cinergy Services has no pro forma journal entries relating to this proposed transaction.
CINERGY SERVICES, INC. PRO FORMA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 .................................... $(213) $-- $(213) Net income ................................................... 213 -- 213 ----- ---- ----- BALANCE DECEMBER 31, 1996 .................................... $-- $-- $-- Note: Cinergy Services has no pro forma journal entries relating to this proposed transaction.
EX-99.FS.1 12 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 THE UNION LIGHT, HEAT, AND POWER COMPANY AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
THE UNION LIGHT, HEAT, AND POWER COMPANY PRO FORMA STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands, except per share amounts) OPERATING REVENUES Electric ......................................................... $ 190,900 $ -- $ 190,900 Gas .............................................................. 76,868 -- 76,868 --------- --------- --------- Total operating revenues ......................................... 267,768 -- 267,768 OPERATING EXPENSES Electricity purchased from parent company for resale ....................................................... 143,839 -- 143,839 Gas purchased .................................................... 41,185 -- 41,185 Other operation .................................................. 30,934 -- 30,934 Maintenance ...................................................... 4,997 -- 4,997 Depreciation ..................................................... 11,909 -- 11,909 Income taxes ..................................................... 9,834 -- 9,834 Taxes other than income taxes .................................... 4,036 -- 4,036 --------- --------- --------- 246,734 -- 246,734 OPERATING INCOME ................................................. 21,034 -- 21,034 OTHER INCOME AND EXPENSES - NET Allowance for equity funds used during construction ..................................................... (8) -- (8) Income taxes ..................................................... (352) 408 56 Other - net ...................................................... (1,417) -- (1,417) --------- --------- --------- (1,777) 408 (1,369) INCOME BEFORE INTEREST ........................................... 19,257 408 19,665 INTEREST Interest on long-term debt ....................................... 4,016 -- 4,016 Other interest ................................................... 703 1,167 1,870 Allowance for borrowed funds used during construction .............................................. (58) -- (58) --------- --------- --------- 4,661 1,167 5,828 NET INCOME ....................................................... $ 14,596 $ (759) $ 13,837
THE UNION LIGHT, HEAT, AND POWER COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) UTILITY PLANT - ORIGINAL COST In service Electric ............................................................... $195,053 $ -- $195,053 Gas .................................................................... 148,203 -- 148,203 Common ................................................................. 19,285 -- 19,285 -------- -------- -------- 362,541 -- 362,541 Accumulated depreciation ............................................... 122,310 -- 122,310 -------- -------- -------- 240,231 -- 240,231 Construction work in progress .......................................... 9,050 -- 9,050 -------- -------- -------- Total utility plant .................................................... 249,281 -- 249,281 CURRENT ASSETS Cash and temporary cash investments .................................... 1,197 19,451 20,648 Notes receivable from affiliated companies ............................. 100 -- 100 Accounts receivable less accumulated provision for doubtful accounts of $1,024 .............................. 12,763 -- 12,763 Accounts receivable from affiliated companies .......................... 620 -- 620 Materials, supplies, and fuel - - at average cost Gas stored for current use ............................................. 6,351 -- 6,351 Other materials and supplies ........................................... 716 -- 716 Property taxes applicable to subsequent year ........................... 2,600 -- 2,600 Prepayments and other .................................................. 370 -- 370 -------- -------- -------- 24,717 19,451 44,168 OTHER ASSETS Regulatory Assets Deferred merger costs .................................................. 5,218 -- 5,218 Unamortized costs of reacquiring debt .................................. 3,764 -- 3,764 Other .................................................................. 2,357 -- 2,357 Other .................................................................. 5,146 -- 5,146 -------- -------- -------- 16,485 -- 16,485 $290,483 $ 19,451 $309,934
THE UNION LIGHT, HEAT, AND POWER COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - $15.00 par value; Authorized shares - 1,000,000 Outstanding shares - 585,333 Actual ............................... $ 8,780 $ -- $ 8,780 Paid-in capital ................................................... 18,839 -- 18,839 Retained earnings ................................................. 92,484 (759) 91,725 -------- --------- -------- Total common stock equity ......................................... 120,103 (759) 119,344 LONG-TERM DEBT .................................................... 44,617 -- 44,617 -------- --------- -------- Total capitalization .............................................. 164,720 (759) 163,961 CURRENT LIABILITIES Notes payable ..................................................... -- 19,451 19,451 Notes payable to affiliated companies ............................. 30,649 -- 30,649 Accounts payable .................................................. 12,018 -- 12,018 Accounts payable to affiliated companies .......................... 16,771 -- 16,771 Accrued taxes ..................................................... 1,014 (408) 606 Accrued interest .................................................. 1,284 1,167 2,451 Other ............................................................. 5,248 -- 5,248 -------- --------- -------- 66,984 20,210 87,194 OTHER LIABILITIES Deferred income taxes ............................................. 33,463 -- 33,463 Unamortized investment tax credits ................................ 4,797 -- 4,797 Accrued pension and other postretirement benefit costs ..................................................... 12,983 -- 12,983 Income taxes refundable through rates ............................. 5,121 -- 5,121 Other ............................................................. 2,415 -- 2,415 -------- --------- -------- 58,779 -- 58,779 $290,483 $ 19,451 $309,934
THE UNION LIGHT, HEAT, AND POWER COMPANY PRO FORMA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 .................................. $ 82,863 $-- $ 82,863 Net income ................................................. 14,596 (759) 13,837 Dividends on common stock .................................. (4,975) -- (4,975) -------- ----- -------- BALANCE DECEMBER 31, 1996 .................................. $ 92,484 $(759) $ 91,725
THE UNION LIGHT, HEAT, AND POWER COMPANY Pro Forma Journal Entries to Give Effect to the Borrowing of Up to $50,000,000 from Banks Entry No. 1 Cash and temporary cash investments $19,451,000 Notes payable $19,451,000 To record the issuance of notes payable net of $30,549,000 of notes receivable from affiliated companies and notes payable to affiliated companies as of December 31, 1996. Entry No. 2 Other interest $ 1,167,060 Accrued interest $ 1,167,060 To record interest on $19,451,000 of notes payable at 6% per annum. Entry No. 3 Accrued taxes $ 408,471 Income taxes $ 408,471 To record the reduction in income taxes due to increased interest expense on notes payable. ($1,167,060 at an assumed tax rate of 35%). EX-99.FS.1 13 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 THE WEST HARRISON GAS AND ELECTRIC COMPANY AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
THE WEST HARRISON GAS AND ELECTRIC COMPANY PRO FORMA STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands, except per share amounts) ELECTRIC OPERATING REVENUES ....................................... $540 $-- $540 OPERATING EXPENSES Fuel .............................................................. 1 -- 1 Purchased and exchanged power Affiliated companies .............................................. 363 -- 363 Other operation ................................................... 55 -- 55 Maintenance ....................................................... 11 -- 11 Depreciation ...................................................... 19 -- 19 Income taxes ...................................................... 30 -- 30 Taxes other than income taxes ..................................... 12 -- 12 ---- ----- ---- 491 -- 491 OPERATING INCOME .................................................. 49 -- 49 OTHER INCOME AND EXPENSES - NET ................................... -- 4 4 ---- ----- ---- INCOME BEFORE INTEREST ............................................ 49 4 53 INTEREST .......................................................... 3 12 15 ---- ----- ---- NET INCOME ........................................................ $ 46 $ (8) $ 38
THE WEST HARRISON GAS AND ELECTRIC COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) ELECTRIC UTILITY PLANT - ORIGINAL COST In service ................................................................ $585 $-- $585 Accumulated depreciation .................................................. 189 -- 189 ---- ---- ---- Total electric utility plant .............................................. 396 -- 396 CURRENT ASSETS Cash ...................................................................... 11 200 211 Accounts receivable ....................................................... 75 -- 75 Accounts receivable from affiliated companies ............................. 4 -- 4 Prepayments ............................................................... 8 -- 8 ---- ---- ---- 98 200 298 OTHER ASSETS Amounts due from customers - income taxes ................................. 11 -- 11 Other ..................................................................... 9 -- 9 ---- ---- ---- 20 -- 20 $514 $200 $714
THE WEST HARRISON GAS AND ELECTRIC COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - $10.00 par value; Authorized shares - 10,000 Outstanding shares - 2,000 Actual ....................................... $ 20 $-- $ 20 Retained earnings ....................................................... 297 (8) 289 ---- ----- ---- Total capitalization .................................................... 317 (8) 309 CURRENT LIABILITIES Notes payable ........................................................... -- 200 200 Accounts payable ........................................................ 28 -- 28 Accounts payable to affiliated companies ................................ 48 -- 48 Accrued taxes ........................................................... 8 (4) 4 Accrued interest ........................................................ 2 12 14 Other ................................................................... 8 -- 8 ---- ----- ---- 94 208 302 OTHER LIABILITIES Deferred income taxes ................................................... 73 -- 73 Unamortized investment tax credits ...................................... 12 -- 12 Accrued pension and other postretirement benefit costs ........................................................... 14 -- 14 Other ................................................................... 4 -- 4 ---- ----- ---- 103 -- 103 $514 $ 200 $714
THE WEST HARRISON GAS AND ELECTRIC COMPANY PRO FORMA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 .................................... $ 271 $-- $ 271 Net income ................................................... 46 (8) 38 Dividends on common stock .................................... (20) -- (20) ----- --- ----- BALANCE DECEMBER 31, 1996 .................................... $ 297 $(8) $ 289
THE WEST HARRISON GAS AND ELECTRIC COMPANY Pro Forma Journal Entries to Give Effect to the Borrowing of Up to $200,000 from Banks Entry No. 1 Cash $200,000 Notes payable $200,000 To record the issuance of $200,000 of notes payable. Entry No. 2 Interest $ 12,000 Accrued interest $ 12,000 To record interest on $200,000 of notes payable at 6% per annum. Entry No. 3 Accrued taxes $ 4,200 Income taxes $ 4,200 To record the reduction in income taxes due to increased interest expense on notes payable. ($12,000 at an assumed tax rate of 35%). EX-99.FS.1 14 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 LAWRENCEBURG GAS COMPANY AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
LAWRENCEBURG GAS COMPANY PRO FORMA STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands, except per share amounts) OPERATING REVENUES .............................................. $ 7,633 $ -- $7,633 OPERATING EXPENSES Gas purchased ................................................... 3,976 -- 3,976 Other operation ................................................. 1,229 -- 1,229 Maintenance ..................................................... 162 -- 162 Depreciation .................................................... 417 -- 417 Income taxes .................................................... 515 -- 515 Taxes other than income taxes ................................... 292 -- 292 ------- ------- ------ 6,591 -- 6,591 OPERATING INCOME ................................................ 1,042 -- 1,042 OTHER INCOME AND EXPENSES - NET ................................. (14) 33 19 ------- ------- ------ INCOME BEFORE INTEREST .......................................... 1,028 33 1,061 INTEREST ........................................................ 191 94 285 ------- ------- ------ NET INCOME ...................................................... $ 837 $ (61) $ 776
LAWRENCEBURG GAS COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) UTILITY PLANT - ORIGINAL COST In service .......................................................... $14,570 $ -- $14,570 Accumulated depreciation ............................................ 4,026 -- 4,026 ------- ------- ------- 10,544 -- 10,544 Construction work in progress ....................................... 132 -- 132 ------- ------- ------- Total utility plant ................................................. 10,676 -- 10,676 CURRENT ASSETS Cash ................................................................ 153 1,567 1,720 Accounts receivable less accumulated provision for doubtful accounts of $17,488 .......................... 1,843 -- 1,843 Gas stored for current use .......................................... 14 -- 14 Prepayments ......................................................... 12 -- 12 ------- ------- ------- 2,022 1,567 3,589 OTHER ASSETS Unrecovered purchased gas cost ...................................... 919 -- 919 Other ............................................................... 249 -- 249 ------- ------- ------- 1,168 -- 1,168 $13,866 $ 1,567 $15,433
LAWRENCEBURG GAS COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - without par value; Authorized shares - 11,000 Outstanding shares - 10,768 Actual ................................ $ 539 $ -- $ 539 Retained earnings ................................................. 5,943 (61) 5,882 ------- -------- ------- Total common stock equity ......................................... 6,482 (61) 6,421 LONG-TERM DEBT 9-3/4% Sereies due October 1, 2001 ................................ 1,200 -- 1,200 ------- -------- ------- Total capitalization .............................................. 7,682 (61) 7,621 CURRENT LIABILITIES Notes payable ..................................................... -- 1,567 1,567 Notes payable to affiliated companies ............................. 1,433 -- 1,433 Accounts payable .................................................. 998 -- 998 Accounts payable to affiliated companies .......................... 315 -- 315 Accrued taxes ..................................................... 315 (33) 282 Accrued interest .................................................. 33 94 127 Accrued employee benefits ......................................... 74 -- 74 Other ............................................................. 86 -- 86 ------- -------- ------- 3,254 1,628 4,882 OTHER LIABILITIES Deferred income taxes ............................................. 1,513 -- 1,513 Unamortized investment tax credits ................................ 222 -- 222 Accrued pension and other postretirement benefit costs ..................................................... 493 -- 493 Amounts due customers - income taxes .............................. 108 -- 108 Accrued environmental costs ....................................... 128 -- 128 Refunds from gas suppliers received ............................... 93 -- 93 Other ............................................................. 373 -- 373 ------- -------- ------- 2,930 -- 2,930 $13,866 $ 1,567 $15,433
LAWRENCEBURG GAS COMPANY PRO FORMA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 ................................... $5,106 $-- $5,106 Net income .................................................. 837 (61) 776 ------ ---- ------ BALANCE DECEMBER 31, 1996 ................................... $5,943 $(61) $5,882
LAWRENCEBURG GAS COMPANY Pro Forma Journal Entries to Give Effect to the Borrowing of Up to $3,000,000 from Banks Entry No. 1 Cash $1,566,933 Notes payable $1,566,933 To record the issuance of notes payable net of $1,433,067 of notes payable to affiliated companies. Entry No. 2 Interest $ 94,016 Accrued interest $ 94,016 To record interest on $1,566,933 of notes payable at 6% per annum. Entry No. 3 Accrued taxes $ 32,906 Income taxes $ 32,906 To record the reduction in income taxes due to increased interest expense on notes payable. ($94,016 at an assumed tax rate of 35%). EX-99.FS.1 15 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 KO TRANSMISSION COMPANY AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
KO TRANSMISSION COMPANY PRO FORMA STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands, except per share amounts) GAS OPERATING REVENUES ........................................... $573 $-- $573 OPERATING EXPENSES Other operation .................................................. 274 -- 274 Depreciation ..................................................... 104 -- 104 Income taxes ..................................................... 68 -- 68 Taxes other than income taxes .................................... 25 -- 25 ---- ---- ---- 471 -- 471 OPERATING INCOME ................................................. 102 -- 102 OTHER INCOME AND EXPENSES - NET .................................. 2 -- 2 ---- ---- ---- INCOME BEFORE INTEREST ........................................... 104 -- 104 INTEREST ......................................................... -- -- -- ---- ---- ---- NET INCOME ....................................................... $104 $-- $104 Note: KO Transmission Company has no pro forma journal entries relating to this proposed transaction.
KO TRANSMISSION COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) GAS UTILITY PLANT - ORIGINAL COST In service ....................................................... $8,033 $ -- $8,033 Accumulatededepreciation ......................................... 6,850 -- 6,850 ------ ------ ------ Total gas utility plant .......................................... 1,183 -- 1,183 CURRENT ASSETS Accounts receivable .............................................. 18 -- 18 ------ ------ ------ 18 -- 18 OTHER ASSETS Other ............................................................ 469 -- 469 ------ ------ ------ 469 -- 469 $1,670 $ -- $1,670 Note: KO Transmission Company has no pro forma journal entries relating to this proposed transaction.
KO TRANSMISSION COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - $.00 par value; Authorized shares - ,000 Outstanding shares - ,000 Actual .................................... $ -- $ -- $ -- Paid-in capital ..................................................... 515 -- 515 Retained earnings ................................................... 29 -- 29 ------- ------- ------- Total capitalization ................................................ 544 -- 544 CURRENT LIABILITIES Accounts payable .................................................... 53 -- 53 Accounts payable to affiliated companies ............................ 1,038 -- 1,038 Accrued taxes ....................................................... 50 -- 50 ------- ------- ------- 1,141 -- 1,141 OTHER LIABILITIES Deferred income taxes ............................................... (15) -- (15) ------- ------- ------- (15) -- (15) $ 1,670 $ -- $ 1,670 Note: KO Transmission Company has no pro forma journal entries relating to this proposed transaction.
KO TRANSMISSION COMPANY PRO FORMA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 .................................. $-- $ -- $-- Net income ................................................. 104 -- 104 Dividends on common stock .................................. (75) -- (75) ----- ------ ----- BALANCE DECEMBER 31, 1996 .................................. $ 29 $ -- $ 29 Note: KO Transmission Company has no pro forma journal entries relating to this proposed transaction.
EX-99.FS.1 16 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 TRI-STATE IMPROVEMENT COMPANY AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
TRI-STATE IMPROVEMENT COMPANY PRO FORMA STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands) OTHER INCOME AND EXPENSES - NET Income taxes .................................................... $(205) $-- $(205) Other - net ..................................................... 981 -- 981 ----- ---- ----- 776 -- 776 INCOME BEFORE INTEREST .......................................... 776 -- 776 INTEREST ........................................................ 401 -- 401 NET INCOME ...................................................... $ 375 $-- $ 375 Note: Tri-State Improvement Company has no pro forma journal entries relating to this proposed transaction.
TRI-STATE IMPROVEMENT COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) NONUTILITY PROPERTY - ORIGINAL COST In service ....................................................... $31,727 $ -- $31,727 Accumulated depreciation ......................................... 256 -- 256 ------- ------- ------- Total nonutility property ........................................ 31,471 -- 31,471 CURRENT ASSETS Accounts receivable .............................................. 1,790 -- 1,790 Accounts receivable from affiliated companies ........................................................ 956 -- 956 ------- ------- ------- 2,746 -- 2,746 OTHER ASSETS Other ............................................................ 4 -- 4 ------- ------- ------- 4 -- 4 $34,221 $ -- $34,221 Note: Tri-State Improvement Company has no pro forma journal entries relating to this proposed transaction.
TRI-STATE IMPROVEMENT COMPANY PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - without par value; $25 stated value; Authorized shares - 1000; Outstanding shares - 1000 Actual .......................................... $ 25 $ -- $ 25 Retained earnings ......................................................... 429 -- 429 ------- ------- ------- Total common stock equity ................................................. 454 -- 454 Long-term Debt ............................................................ 29,691 -- 29,691 ------- ------- ------- Total capitalization ...................................................... 30,145 -- 30,145 CURRENT LIABILITIES Accounts payable .......................................................... 301 -- 301 Accrued taxes ............................................................. 710 -- 710 ------- ------- ------- 1,011 -- 1,011 OTHER LIABILITIES Deferred income taxes ..................................................... 3,054 -- 3,054 Other ..................................................................... 11 -- 11 ------- ------- ------- 3,065 -- 3,065 $34,221 $ -- $34,221 Note: Tri-State Improvement Company has no pro forma journal entries relating to this proposed transaction.
TRI-STATE IMPROVEMENT COMPANY PRO FORMA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 ...................................... $ 54 $ -- $ 54 Net income ..................................................... 375 -- 375 ---- ----- ---- BALANCE DECEMBER 31, 1996 ...................................... $429 $ -- $429 Note: Tri-State Improvement Company has no pro forma journal entries relating to this proposed transaction.
EX-99.FS.1 17 FINANCIAL STATEMENTS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM U-1 THE CINCINNATI GAS & ELECTRIC COMPANY CONSOLIDATED AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
THE CINCINNATI GAS & ELECTRIC COMPANY PRO FORMA CONSOLIDATED STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands, except per share amounts) OPERATING REVENUES Electric Non-affiliated companies ............................................ $ 1,458,828 $ -- $ 1,458,828 Affiliated companies ................................................ 43,180 -- 43,180 Gas Non-affiliated companies ............................................ 474,034 -- 474,034 Affiliated companies ................................................ 7 -- 7 ----------- ----------- ----------- Total operating revenues ............................................ 1,976,049 -- 1,976,049 OPERATING EXPENSES Fuel used in electric production .................................... 349,197 -- 349,197 Gas purchased ....................................................... 249,116 -- 249,116 Purchased and exchanged power ....................................... -- -- Non-affiliated companies ............................................ 46,333 -- 46,333 Affiliated companies ................................................ 21,921 -- 21,921 Other operation ..................................................... 330,169 -- 330,169 Maintenance ......................................................... 96,205 -- 96,205 Depreciation ........................................................ 160,951 -- 160,951 Amortization of phase-in deferrals .................................. 13,598 -- 13,598 Amortization of post-in-service deferred operating expenses ............................................................ 3,290 -- 3,290 Income taxes ........................................................ 145,075 -- 145,075 Taxes other than income taxes ....................................... 207,904 -- 207,904 ----------- ----------- ----------- 1,623,759 -- 1,623,759 OPERATING INCOME .................................................... 352,290 -- 352,290 OTHER INCOME AND EXPENSES - NET Allowance for equity funds used during construction ........................................................ 1,225 -- 1,225 Phase-in deferred return ............................................ 8,372 -- 8,372 Income taxes ........................................................ 9,139 448 9,587 Other - net ......................................................... (21,296) -- (21,296) ----------- ----------- ----------- (2,560) 448 (2,112) INCOME BEFORE INTEREST .............................................. 349,730 448 350,178 INTEREST Interest on long-term debt .......................................... 123,616 -- 123,616 Other interest ...................................................... 2,793 1,279 4,072 Allowance for borrowed funds used during construction ................................................. (3,859) -- (3,859) ----------- ----------- ----------- 122,550 1,279 123,829 NET INCOME .......................................................... $ 227,180 $ (831) $ 226,349 PREFERRED DIVIDEND REQUIREMENT ...................................... 10,643 -- 10,643 COSTS OF REACQUISITION OF PREFERRED STOCK ............................................................... 18,391 -- 18,391 ----------- ----------- ----------- NET INCOME APPLICABLE TO COMMON STOCK ............................... $ 198,156 $ (831) $ 197,315
THE CINCINNATI GAS & ELECTRIC COMPANY PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) UTILITY PLANT - ORIGINAL COST In service Electric ......................................................... $4,631,605 $ -- $4,631,605 Gas .............................................................. 713,829 -- 713,829 Common ........................................................... 185,255 -- 185,255 ---------- ---------- ---------- 5,530,689 -- 5,530,689 Accumulated depreciation ......................................... 1,868,579 -- 1,868,579 ---------- ---------- ---------- 3,662,110 -- 3,662,110 Construction work in progress .................................... 95,984 -- 95,984 ---------- ---------- ---------- Total utility plant .............................................. 3,758,094 -- 3,758,094 CURRENT ASSETS Cash and temporary cash investments .............................. 5,120 21,318 26,438 Restricted deposits .............................................. 1,171 -- 1,171 Notes receivable from affiliated companies ....................... 31,740 -- 31,740 Accounts receivable less accumulated provision for doubtful accounts of $9,178 ........................ 117,912 -- 117,912 Accounts receivable from affiliated companies .................... 2,453 -- 2,453 Materials, supplies, and fuel - - at average cost Fuel for use in electric production .............................. 29,865 -- 29,865 Gas stored for current use ....................................... 32,951 -- 32,951 Other materials and supplies ..................................... 52,023 -- 52,023 Property taxes applicable to subsequent year ..................... 123,580 -- 123,580 Prepayments and other ............................................ 32,433 -- 32,433 ---------- ---------- ---------- 429,248 21,318 450,566 OTHER ASSETS Regulatory Assets Amounts due from customers - income taxes ........................ 344,126 -- 344,126 Post-in-service carrying costs and deferred operating expenses ...................................... 141,492 -- 141,492 Phase-in deferred return and depreciation ........................ 95,163 -- 95,163 Deferred demand-side management costs ............................ 33,534 -- 33,534 Deferred merger costs ............................................ 17,709 -- 17,709 Unamortized costs of reacquiring debt ............................ 38,439 -- 38,439 Other ............................................................ 19,545 -- 19,545 Other ............................................................ 89,908 -- 89,908 ---------- ---------- ---------- 779,916 -- 779,916 $4,967,258 $ 21,318 $4,988,576
THE CINCINNATI GAS & ELECTRIC COMPANY PRO FORMA CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - $8.50 par value; Authorized shares - 120,000,000 Outstanding shares - 89,663,086 Actual ......................... $ 762,136 $ -- $ 762,136 Paid-in capital ................................................ 536,276 -- 536,276 Retained earnings .............................................. 247,403 (831) 246,572 ---------- ----------- ---------- Total common stock equity ...................................... 1,545,815 (831) 1,544,984 CUMULATIVE PREFERRED STOCK Not subject to mandatory redemption ............................ 21,146 -- 21,146 LONG-TERM DEBT ................................................. 1,565,108 -- 1,565,108 ---------- ----------- ---------- Total capitalization ........................................... 3,132,069 (831) 3,131,238 CURRENT LIABILITIES Long-term debt due within one year ............................. 130,000 -- 130,000 Notes payable .................................................. 30,488 21,318 51,806 Notes payable to affiliated companies .......................... 103 -- 103 Accounts payable ............................................... 166,064 -- 166,064 Accounts payable to affiliated companies ....................... 12,726 -- 12,726 Accrued taxes .................................................. 267,841 (448) 267,393 Accrued interest ............................................... 30,570 1,279 31,849 Other .......................................................... 32,191 -- 32,191 ---------- ----------- ---------- 669,983 22,149 692,132 OTHER LIABILITIES Deferred income taxes .......................................... 767,085 -- 767,085 Unamortized investment tax credits ............................. 123,185 -- 123,185 Accrued pension and other postretirement benefit costs .................................................. 165,282 -- 165,282 Other .......................................................... 109,654 -- 109,654 ---------- ----------- ---------- 1,165,206 -- 1,165,206 $4,967,258 $ 21,318 $4,988,576
THE CINCINNATI GAS & ELECTRIC COMPANY PRO FORMA CONSOLIDATED STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 ......................................... $ 427,226 $-- $ 427,226 Net income ........................................................ 227,180 (831) 226,349 Dividends on preferred stock ...................................... (10,643) -- (10,643) Dividends on common stock ......................................... (377,969) -- (377,969) Costs of reacquisition of preferred stock ......................... (18,391) -- (18,391) --------- ----- --------- BALANCE DECEMBER 31, 1996 ......................................... $ 247,403 $(831) $ 246,572
THE CINCINNATI GAS & ELECTRIC COMPANY Pro Forma Consolidated Journal Entries to Give Effect to the Borrowing of Up to $53,300,000 from Banks Entry No. 1 Cash and temporary cash investments $21,317,933 Notes payable $21,317,933 To record the issuance of notes payable of The Union Light, Heat, and Power Company, The West Harrison Gas and Electric Company, Lawrenceburg Gas Company, and Miami Power Corporation net of $31,982,067 of notes receivable from affiliated companies and all notes payable as of December 31, 1996. Entry No. 2 Other interest $ 1,279,076 Accrued interest $ 1,279,076 To record interest on $21,317,933 of notes payable at 6% per annum. Entry No. 3 Accrued taxes $ 447,677 Income taxes $ 447,677 To record the reduction in income taxes due to increased interest expense on notes payable. ($1,279,076 at an assumed tax rate of 35%). EX-99.FS.1 18 FINANCIAL STATEMENTS WASHINGTON, D.C. FORM U-1 CINERGY CORP. AS OF DECEMBER 31, 1996 (Unaudited) Pages 1 through 6
CINERGY CORP. PRO FORMA STATEMENT OF INCOME YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (in thousands, except per share amounts) OTHER INCOME AND EXPENSES - NET Equity in earnings of consolidated subsidiaries ..................... $ 347,556 $ (10,179) $ 337,377 Income taxes ........................................................ 6,857 -- 6,857 Other - net ......................................................... (1,501) -- (1,501) --------- --------- --------- 352,912 (10,179) 342,733 INCOME BEFORE INTEREST .............................................. 352,912 (10,179) 342,733 INTEREST ............................................................ 18,115 -- 18,115 NET INCOME .......................................................... $ 334,797 $ (10,179) $ 324,618
CINERGY CORP. PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 ASSETS Pro Forma Actual Adjustments Pro Forma (dollars in thousands) CURRENT ASSETS Cash and temporary cash investments .......................... $ 3,605 $ -- $ 3,605 Notes receivable from affiliated companies .................................................... 42 -- 42 Accounts receivable - net .................................... 104 -- 104 Accounts receivable from affiliated companies .................................................... 10,780 -- 10,780 Prepayments .................................................. 1,000 -- 1,000 ----------- ----------- ---------- 15,531 -- 15,531 OTHER ASSETS Investment in consolidated subsidiaries ...................... 3,101,501 (10,179) 3,091,322 Other ........................................................ 2,071 -- 2,071 ----------- ----------- ---------- 3,103,572 (10,179) 3,093,393 $ 3,119,103 $ (10,179) $3,108,924
CINERGY CORP. PRO FORMA BALANCE SHEET AT DECEMBER 31, 1996 CAPITALIZATION AND LIABILITIES Pro Forma Actual Adjustments Pro Forma (dollars in thousands) COMMON STOCK EQUITY Common stock - $.01 par value; Authorized shares - 600,000,000 Outstanding shares - 157,679,129 Actual .................... $ 1,577 $ -- $ 1,577 Paid-in capital ............................................ 1,590,735 -- 1,590,735 Retained earnings .......................................... 992,273 (10,179) 982,094 Cumulative foreign currency translation adjustment ................................................. (131) -- (131) ----------- ----------- ----------- Total common stock equity .................................. 2,584,454 (10,179) 2,574,275 CURRENT LIABILITIES Notes payable .............................................. 509,000 -- 509,000 Notes payable to affiliated companies .................................................. 7 -- 7 Accounts payable ........................................... 2,597 -- 2,597 Accounts payable to affiliated companies .................................................. 23,196 -- 23,196 Accrued taxes .............................................. (14,439) -- (14,439) Accrued interest ........................................... 975 -- 975 ----------- ----------- ----------- 521,336 -- 521,336 OTHER LIABILITIES Deferred income taxes ...................................... 13,287 -- 13,287 Other ...................................................... 26 -- 26 ----------- ----------- ----------- 13,313 -- 13,313 $ 3,119,103 $ (10,179) $ 3,108,924
CINERGY CORP. PRO FORMA STATEMENT OF CHANGES IN RETAINED EARNINGS YEAR ENDED DECEMBER 31, 1996 Pro Forma Actual Adjustments Pro Forma (dollars in thousands) BALANCE DECEMBER 31, 1995 ......................................... $ 950,216 $ -- $ 950,216 Net income ........................................................ 334,797 (10,179) 324,618 Dividends on common stock ......................................... (274,358) -- (274,358) Costs of reacquisition of preferred stock of subsidiary ..................................................... (18,391) -- (18,391) Other ............................................................. 9 -- 9 --------- -------- --------- BALANCE DECEMBER 31, 1996 ......................................... $ 992,273 $(10,179) $ 982,094
CINERGY CORP. Pro Forma Journal Entries to Give Effect to the Various Cinergy System Companies' Pro Forma Journal Entries Involving Interest and Income Tax Expense from the Borrowing of Up to $453,300,000 from Banks on Cinergy Corp. Entry No. 1 Equity in earnings of subsidiaries $10,179,231 Investment in subsidiaries $10,179,231 To record the net effect of the various Cinergy sytem companies' pro forma journal entries involving interest and income tax expense on Cinergy Corporation. EX-27.1 19
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 1 CINERGY CORP. 1000 YEAR YEAR DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 DEC-31-1996 DEC-31-1996 PER-BOOK PRO-FORMA 0 0 0 0 15531 15531 0 0 3103572 3093393 3119103 3108924 1577 1577 1590735 1590735 992142 981963 2584454 2574275 0 0 0 0 0 0 509007 509007 0 0 0 0 0 0 0 0 0 0 0 0 25642 25642 3119103 3108924 0 0 (6857) (6857) (346055) (335876) (352912) (342733) 352912 342733 0 0 352912 342733 18115 18115 334797 324618 0 0 316406 306227 0 0 0 0 0 0 0.00 0.00 0.00 0.00
EX-27.0 20
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 0 CINERGY CORP. (CONSOLIDATED) 1000 YEAR YEAR DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 DEC-31-1996 DEC-31-1996 PER-BOOK PRO-FORMA 6289626 6289626 0 0 566011 827017 1168666 1168666 824211 824211 8848514 9109520 1577 1577 1590735 1590735 992142 981963 2584454 2574275 0 0 194232 194232 2534978 2534978 713617 974623 0 0 0 0 140000 140000 0 0 0 0 0 0 2681233 2691412 8848514 9109520 3242740 3242740 218269 218269 2466213 2466213 2684482 2684482 558258 558258 15322 20803 573580 579061 215603 231263 357977 347798 23180 23180 316406 306227 274358 274358 190617 190617 0 0 2.00 1.94 2.00 1.94
EX-27.2 21
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 2 CINERGY SERVICES, INC. 1000 YEAR YEAR DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 DEC-31-1996 DEC-31-1996 PER-BOOK PRO-FORMA 0 0 0 0 21843 21843 0 0 6949 6949 28792 28792 0 0 0 0 0 0 0 0 0 0 0 0 0 0 18489 18489 0 0 0 0 0 0 0 0 0 0 0 0 10303 10303 28792 28792 615348 615348 0 0 614473 614473 614473 614473 875 875 (93) (93) 782 782 569 569 213 213 0 0 213 213 0 0 0 0 0 0 0.00 0.00 0.00 0.00
EX-27.5 22
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 5 THE CINCINNATI GAS & ELECTRIC CO. (CONSOLIDATED) 1000 YEAR YEAR DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 DEC-31-1996 DEC-31-1996 PER-BOOK PRO-FORMA 3758094 3758094 0 0 429248 450566 690008 690008 89908 89908 4967258 4988576 762136 762136 536276 536276 247403 246572 1545815 1544984 0 0 21146 21146 1565108 1565108 30591 51909 0 0 0 0 130000 130000 0 0 0 0 0 0 1674598 1675429 4967258 4988576 1976049 1976049 145075 145075 1478684 1478684 1623759 1623759 352290 352290 (2560) (2112) 349730 350178 122550 123829 227180 226349 10643 10643 198146 197315 0 0 123616 123616 0 0 0.00 0.00 0.00 0.00
EX-27.7 23
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 7 THE UNION LIGHT, HEAT AND POWER CO. 1000 YEAR YEAR DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 DEC-31-1996 DEC-31-1996 PER-BOOK PRO-FORMA 249281 249281 0 0 24717 44168 11339 11339 5146 5146 290483 309934 8780 8780 18839 18839 92484 91725 120103 119344 0 0 0 0 44617 44617 30649 50100 0 0 0 0 0 0 0 0 0 0 0 0 95114 95873 290483 309934 267768 267768 9834 9834 236900 236900 246734 246734 21034 21034 (1777) (1369) 19257 19665 4661 5828 14596 13837 0 0 14596 13837 0 0 0 0 0 0 0.00 0.00 0.00 0.00
EX-27.8 24
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 8 THE WEST HARRISON GAS AND ELECTRIC CO. 1000 YEAR YEAR DEC-31-1994 DEC-31-1996 JAN-01-1994 JAN-01-1996 DEC-31-1994 DEC-31-1996 PER-BOOK PRO-FORMA 396 396 0 0 98 298 0 0 20 20 514 714 20 20 0 0 297 289 317 309 0 0 0 0 0 0 0 200 0 0 0 0 0 0 0 0 0 0 0 0 197 205 514 714 540 540 30 30 461 461 491 491 49 49 0 4 49 53 3 15 46 38 0 0 46 38 0 0 0 0 0 0 0.00 0.00 0.00 0.00
EX-27.9 25
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 9 LAWRENCEBURG GAS CO. 1000 YEAR YEAR DEC-31-1994 DEC-31-1996 JAN-01-1994 JAN-01-1996 DEC-31-1994 DEC-31-1996 PER-BOOK PRO-FORMA 10676 10676 0 0 2022 3589 919 919 249 249 13866 15433 539 539 0 0 5943 5882 6482 6421 0 0 0 0 1200 1200 1433 3000 0 0 0 0 0 0 0 0 0 0 0 0 4751 4812 13866 15433 7633 7633 515 515 6076 6076 6591 6591 1042 1042 (14) 19 1028 1061 191 285 837 776 0 0 837 776 0 0 0 0 0 0 0.00 0.00 0.00 0.00
EX-27.10 26
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 10 MIAMI POWER CORP. 1000 YEAR YEAR DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 DEC-31-1996 DEC-31-1996 PER-BOOK PRO-FORMA 9 9 0 0 68 168 0 0 0 0 77 177 1 1 0 0 (6) (10) (5) (9) 0 0 0 0 0 0 0 100 0 0 0 0 0 0 0 0 0 0 0 0 82 86 77 177 39 39 6 6 24 24 30 30 9 9 0 2 9 11 0 6 9 5 0 0 9 5 0 0 0 0 0 0 0.00 0.00 0.00 0.00
EX-27.12 27
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 12 TRI-STATE IMPROVEMENT CO. 1000 YEAR YEAR DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 DEC-31-1996 DEC-31-1996 PER-BOOK PRO-FORMA 0 0 31471 31471 2746 2746 0 0 4 4 34221 34221 25 25 0 0 429 429 454 454 0 0 0 0 29691 29691 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4076 4076 34221 34221 0 0 0 0 0 0 0 0 0 0 776 776 776 776 401 401 375 375 0 0 375 375 0 0 0 0 0 0 0.00 0.00 0.00 0.00
EX-27.11 28
OPUR1 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEETS AND STATEMENTS OF INCOME AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 0000899652 CINERGY CORP. 11 KO TRANSMISSION CO. 1000 YEAR YEAR DEC-31-1996 DEC-31-1996 JAN-01-1996 JAN-01-1996 DEC-31-1996 DEC-31-1996 PER-BOOK PRO-FORMA 1183 1183 0 0 18 18 0 0 469 469 1670 1670 0 0 515 515 29 29 544 544 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1126 1126 1670 1670 573 573 68 68 403 403 471 471 102 102 2 2 104 104 0 0 104 104 0 0 104 104 0 0 0 0 0 0 0.00 0.00 0.00 0.00
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