[Federal Register: June 25, 2004 (Volume 69, Number 122)]
[Notices]
[Page 35692-35693]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25jn04-140]
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SECURITIES AND EXCHANGE COMMISSION
[(Release No. 35-27859)]
Filings Under the Public Utility Holding Company Act of 1935, as
Amended (``Act'')
DATES: June 18, 2004.
Notice is hereby given that the following filing(s) has/haven been
made with the Commission pursuant to provisions of the Act and rules
promulgated under the Act. All interested persons are referred to the
application(s) and/or declaration(s) for complete statements of the
proposed transaction(s) summarized below. The application(s) and/or
declaration(s) and any amendment(s) is/are available for public
inspection through the Commission's Branch of Public Reference.
Interested persons wishing to comment or request a hearing on the
application(s) and/or declaration(s) should submit their views in
writing by July 13, 2004, to the Secretary, Securities and Exchange
Commission, Washington, DC 20549-0609, and serve a copy on the relevant
application(s) and/or declarant(s) at the address(es) specified below.
Proof of service (by affidavit or, in the case of an attorney at law,
by certificate) should be filed with the request. Any request for
hearing should identify specifically the issues of facts or law that
are disputed. A person who so requests will be notified of any hearing,
if ordered, and will receive a copy of any notice or order issued in
the matter. After July 13, 2004, the application(s) and/or
declaration(s), as filed or as amended, may be granted and/or permitted
to become effective.
Cinergy Services, Inc. (70-10228)
Cinergy Service, Inc., a Delaware corporation (``Cinergy Services''
or ``Applicant''), 139 East Fourth Street, Cincinnati, Ohio 45202, a
service company subsidiary of Cinergy Corporation (``Cinergy''), a
registered holding company, has filed an application (``Application'')
with the Commission under section 13(b) of the Act and rules 54, 90,
91, and 93(d) under the Act.
Cinergy Services requests a waiver from the requirement under the
rule 93 of the Act that service companies maintain their books and
records as prescribed by 17 CFR part 257 in accordance with the
accounts established in the Commission's Uniform System of Accounts for
Mutual Service Companies and Subsidiary Service Companies(``System of
Accounts'').\1\ Specifically, Cinergy Services requests a waiver under
rule 93(d) to use the chart of accounts in the Federal Energy
Regulatory Commission's (``FERC'') Uniform System of Accounts
Prescribed for Public Utilities and Licensees Subject to Provisions of
the Federal Power Act(``FERC Chart of Accounts''),\2\ Instead of the
System of Accounts, for all purposes for which Cinergy Services would
otherwise use the System of Accounts. Cinergy Services states that the
proposed adoption of the FERC Chart of Accounts, which contains
additional accounts relevant to Cinergy Services functions not included
in the System of Accounts, will permit the Cinergy system to realize
process improvements and other efficiencies in its accounting
system.\3\ Cinergy Services also requests authority to amend its
existing service agreements to make conforming textual revisions
reflecting the proposed use of the FERC Chart of Accounts. In all other
respects, Cinergy Services states that it will continue to
[[Page 35693]]
comply fully with rule 93 and the System of Accounts.\4\
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\1\ See 17 CFR 256.00-1, et seq.
\2\ See 18 CFR 101.
\3\ See Energy East Corp., HCAR No. 27729; Sept. 30, 2003
(allowing a comparable use of the FERC Chart of Accounts).
\4\ By implementing this change, the Cinergy system;s FERC
reporting will not change; rather, Cinergy Services' reporting will
be modified to include FERC functionalized accounts.
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Cinergy Services was organized to act as a service company
subsidiary for Cinergy in connection with the merger that created the
Cinergy holding company system.\5\ Cinergy Services renders its
services under separate Commission-approved service agreements with
Cinergy's utility and nonutility subsidiaries.\6\
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\5\ See Cinergy Corp., HCAR No. 26146; Oct. 21, 1994 (``Merger
Order''). Cinergy directly or indirectly owns all the outstanding
common stock of five public utility companies, the most significant
of which are PSI Energy, Inc. (``PSI''), an Indiana electric
utility, and The Cincinnati Gas & Electric Company (``CG&E'') a
combination Ohio electric and gas utility and holding company. PSI
and CG&E (including the utility subsidiaries of CG&E, the most
significant of which is The Union Light, Heat and Power Company, a
Kentucky combination electric and gas utility) collectively provide
electric and gas service to approximately 1.6 million retail and
wholesale customers in parts of Indiana, Ohio and Kentucky. The
Cinergy system also includes numerous nonutility subsidiaries
engaged in energy-related business and other nonutility businesses
authorized under the Act, by Commission order or otherwise.
\6\ The Commission approved the Service Agreements in the Merger
Order. In 1997, the Commission authorized an amendment to the
Nonutility Services Agreements under which Cinergy Services was
authorized to provide an expanded roster of services to associated
nonutility companies (HCAR No. 2662; Feb. 7, 1997).
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Applicant states that the Cinergy system intends to implement a new
accounting and reporting system in early 2005. Currently, the system
maintains multiple charts of account, including the System of Accounts
for Cinergy Services and the FERC Chart of Accounts for the FERC-
jurisdictional companies. Under the proposed accounting system, the
multiple charts of accounts now used throughout the system will
consolidated into a single chart of accounts. Applicant states that the
decision to consolidate the various charts of account into a single
chart of accounts reflects Cinergy's view of industry ``best
practices'', including avoidance of account rollup structures,\7\ and
is expected to yield a number of other system benefits, including: (1)
Improving internal processes; (2) standardizing and streamlining
processes; and (3) enhancing reporting system performance. Cinergy
Services states that the proposed transactions only affect account-
record keeping and reporting presentations and will provide greater
transparency regarding its various reporting requirements.
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\7\ For example, because the System of Accounts requires Cinergy
Services to record operating and maintenance expenses in the
administrative and general expense accounts, while under the broader
FERC System of Accounts the same type of expenses incurred by FERC-
jurisdictional companies are recorded in more specialized functional
accounts, Cinergy Services currently maintains a duplicate set of
account rollup structures in order to facilitate proper reporting
for both Commission and FERC purposes.
For the Commission, by the Division of Investment Management,
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pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 04-14449 Filed 6-24-04; 8:45 am]
BILLING CODE 8010-01-M