[Federal Register Volume 69, Number 122 (Friday, June 25, 2004)]
[Notices]
[Pages 35692-35693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-14449]


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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