[Federal Register Volume 60, Number 213 (Friday, November 3, 1995)]
[Notices]
[Pages 55880-55881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27276]



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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-26402]


Filings Under the Public Utility Holding Company Act of 1935, As 
Amended (``Act'')

October 27, 1995.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated thereunder. 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 amendments thereto is/are available for public 
inspection through the Commission's Office of Public Reference.
    Interested person wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by November 20, 1995, to the Secretary, Securities and Exchange 
Commission, Washington, D.C. 20549, and serve a copy on the relevant 
applicant(s) and/or declarant(s) at the address(es) specified below. 
Proof of service (by affidavit or, in case of an attorney at law, by 
certificate) should be filed with the request. Any request for hearing 
shall identify specifically the issues of fact 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 said date, the application(s) and/or declaration(s), as 
filed or as amended, may be granted and/or permitted to become 
effective.

New England Energy Incorporated (70-6971)

    New England Energy Incorporated (``NEEI''), 25 Research Drive, 
Westborough, Massachusetts 01582, a fuel supply subsidiary of New 
England Electric System, a registered holding company, has filed a 
post-effective amendment to its application-declaration under Sections 
6(a), 7, 9(a) and 10 of the Act.
    By order dated August 16, 1984 (HCAR No. 23397), NEEI was 
authorized to enter into interest payment exchange contracts (``Swap 
Agreement(s)'') with one or more parties, on or before December 31, 
1985, covering a total principal amount of up to $150 million of its 
outstanding debt (``Covered Amounts''). The Swap Agreements could have 
a term or terms ranging between three and seven years. The Covered 
Amounts represent borrowings last authorized for NEEI under a credit 
agreement (``Credit Agreement'') with certain banks in total amounts 
outstanding at any one time of up $400 million, through December 31, 
1998 (HCAR No. 24847, March 29, 1989) (``Borrowings''). The Borrowings 
may be made at NEEI's option under any one of four interest rates.
    By order dated March 7, 1986 (HCAR No. 24046), this authority was 
extended through December 31, 1987 and the Covered Amounts could be 
increased up to $200 million. Subsequently, by order dated December 17, 
1987 (HCAR No. 24531), NEEI was authorized to enter into additional 
Swap Agreements and other types of interest rate protection mechanisms, 
up to the same principal amount, on or before December 31, 1989. 
Finally, by orders dated December 29, 1989, September 19, 1991 and 
December 1, 1993 (HCAR Nos. 25015, 25378 and 25935, respectively), all 
such authority was extended through December 31, 1995, under all of the 
same terms and conditions.
    Subsequently, by order dated April 7, 1995 (HCAR No. 26268), NEEI 
was authorized to enter into a new credit agreement (``New Credit 
Agreement'') with a group of banks headed by Credit Suisse to replace 
the Credit Agreement. The New Credit Agreement initially provides for 
borrowings in outstanding amounts of up to $225 million. Available 
amounts under the credit facility reduce incrementally according to a 
schedule through April 7, 2002. Total borrowings by NEEI at September 
30, 1995 were $180 million.
    Currently, NEEI is a party to two Swap Agreements with a combined 
notional amount of $75 million. On October 21, 1993, NEEI entered into 
a three year Swap Agreement with Merrill Lynch Capital Services, Inc. 
for a notional amount of $50 million. On June 7, 1995, NEEI entered 
into a three year Swap Agreement with Citibank, N.A. for a notional 
amount of $25 million.

[[Page 55881]]

    NEEI now seeks to extend, through December 31, 1998, its authority 
to enter into Swap Agreements and other types of interest rate 
protection mechanisms, as approved by the prior orders, except that 
Covered Amounts will be the lesser of $175 million or the amount 
available under the New Credit Agreement.

PSI Energy, Inc. (70-8727)

    PSI Energy, Inc. (``PSI Energy''), 1000 East Main Street, 
Plainfield, Indiana 46168, an electric utility subsidiary of Cinergy 
Corp. (``Cinergy''), a registered holding company, has filed an 
application under sections 9(a) and 10 and rule 54 thereunder.
    PSI Energy seeks authorization, through December 31, 1996, to enter 
into a business venture with H. H. Gregg (``Gregg''), a retail vendor 
of household electronic appliances and related consumer goods, 
involving an appliance sales program. PSI Energy believes that the 
venture with Gregg will facilitate the eventual marketing to customers 
of other energy-related and demand side management products, more fully 
utilize existing employees and offices to hold down costs, and 
strengthen ties to customers.
    Under the proposed program, PSI Energy would market Gregg's 
electronic goods and appliances at retail, on a best efforts, 
consignment basis to PSI Energy's customers at a limited number of its 
local offices. When sales are made, Gregg would deliver the product to 
the customer and bill PSI Energy the wholesale price paid by Gregg for 
the product. In connection with the program, PSI Energy will also sell 
extended service warranties covering any items purchased. PSI Energy 
would either purchase such warranties from Gregg at a wholesale price 
and resell them to customers, or sell its own warranty and contract 
with Gregg to provide any of the related warranty work. PSI Energy also 
intends to arrange for customer financing through a bank or other 
financial institution, for which PSI Energy would receive a fee of up 
to 2% of the purchase price financed.
    The current proposal involves a pilot program extending from 
November 24, 1995 through December 31, 1996. PSI Energy estimates that 
the pilot program will result in total sales revenues of approximately 
$2.6 million (of which approximately $2.3 million would accrue to 
Gregg), will utilize the full-time employee equivalent of three or four 
employees, and will involve approximately $320,000 of expenditures 
(consisting primarily of advertising and sales expenses, expenses 
associated with the use of local offices and related facilities, and 
expenses associated with employees' time). PSI Energy (or another 
Cinergy system company) may seek to extend this authorization, 
depending on the success of the pilot program.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 95-27276 Filed 11-2-95; 8:45 am]
BILLING CODE 8010-01-M