[Federal Register Volume 69, Number 149 (Wednesday, August 4, 2004)]
[Notices]
[Pages 47188-47189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17770]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-27879]


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

July 29, 2004.
    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 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 August 23, 2004, to the Secretary, Securities and Exchange 
Commission, Washington, DC 20549-0609, 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 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 August 23, 2004, the application(s) and/or 
declaration(s), as filed or as amended, may be granted and/or permitted 
to become effective.

Columbia Energy Group (70-9421)

    Columbia Energy Group (``Columbia Energy''), a registered holding 
company, and a wholly-owned subsidiary of NiSource Inc., also a 
registered holding company, of 801 East 86th Avenue, Merrillville, 
Indiana 46410, and Columbia Gas of Ohio, Inc., (``Columbia Ohio'') a 
wholly-owned public utility subsidiary of Columbia Energy, of 200 Civic 
Center Drive, Columbus, Ohio 43215, (Columbia Energy and Columbia Ohio 
together referred to as ``Columbia''), have filed with the Commission a 
post-effective amendment (``Amendment'') to an application-declaration 
previously filed under sections 6(a), 7, 9(a), 10, and 12(b) of the Act 
and rules 45 and 54 under the Act.
    Columbia Energy's public utility subsidiaries are Columbia Gas of 
Kentucky, Inc., Columbia Gas of Maryland, Inc., Columbia Ohio,

[[Page 47189]]

Columbia Gas of Pennsylvania, Inc. and Columbia Gas of Virginia, Inc. 
Together, these companies provide gas utility service to approximately 
2.2 million residential, commercial and industrial customers in 
portions of Ohio, Virginia, Pennsylvania, Maryland and Kentucky. 
Columbia Energy also directly or indirectly owns all of the outstanding 
securities of non-utility subsidiaries that are engaged in natural gas 
transportation and storage and other energy and gas-related activities.
    By prior Commission order dated August 23, 1999 (HCAR No. 27064) 
(``Prior Order''), Columbia Energy was authorized to engage in the 
business of factoring customer accounts receivable (``Receivables'') 
through one or more existing or newly formed or acquired, direct or 
indirect subsidiaries (``Factoring Subsidiaries'') to supplement 
customer financings and other intrasystem financing activities, which 
are not deemed to require additional Commission approval. Columbia 
Energy was also authorized to capitalize the Factoring Subsidiaries 
with any combination of debt or equity or to provide guarantees for 
their obligations, in amounts that, in the aggregate do not exceed $25 
million. In addition, Columbia Energy was permitted to factor the 
Receivables of associate and certain types of non-associate companies 
in the energy industry, subject to certain limitations. To date, the 
Factoring Subsidiaries have not factored Receivables for non-associate 
companies, and Columbia states that the Factoring Subsidiaries will not 
be used to purchase Receivables originated by non-associate companies, 
without prior Commission order. Under the Prior Order, the Factoring 
Subsidiaries were required to resell the Receivables to third party 
financial institutions (``Purchasers'') on the date the Receivables 
were acquired. Under the Prior Order, Columbia is also required to 
report the acquisition and sale of all Receivables as ``sales'' under 
generally accepted accounting principles. In order to achieve true 
``sale'' treatment, Columbia states that a Factoring Subsidiary must be 
capitalized with a sufficient level of equity.
    Pursuant to the Prior Order, in September 1999, Columbia Energy, 
through its financing subsidiary, Columbia Finance Corporation, 
organized and acquired the common stock of Columbia Accounts Receivable 
Corporation (``CARC'') to handle the sale of Receivables by Columbia 
Ohio. Under its agreement with CARC, Columbia Ohio sold, without 
recourse, all of its trade receivables, other than certain low-income 
payment plan receivables, as they were originated. CARC, in turn, 
entered into an agreement under which it sold an undivided ownership 
interest in the Receivables to a commercial paper conduit formed by 
Canadian Imperial Bank of Commerce (``CIBC'').
    Effective May 13, 2004, Columbia Ohio, CARC and CIBC terminated the 
existing Receivables sale program, and all right, title and interest of 
CARC and the CIBC conduit in the Receivables were transferred back to 
Columbia Ohio. The next day, Columbia Ohio sold the same Receivable 
pool to a new Factoring Subsidiary of Columbia Ohio, Columbia of Ohio 
Receivables Corporation (``CORC''), which in turn sold an undivided 
interest in such Receivables to Beethoven Funding Corporation 
(``BFC''), as Purchaser. BFC is a commercial paper funding conduit 
formed by Dresdner Bank AG, New York Branch, as agent. Columbia Energy 
states that the new Receivables sale program operates substantially 
similar to the CIBC program that it replaced.
    Pursuant to the terms of the sale agreement between Columbia Ohio 
and CORC, on the initial closing date, Columbia Ohio made a capital 
contribution of Receivables having an aggregate outstanding balance of 
$25 million. On or before November 14, 2004, Columbia Ohio is obligated 
to make an additional $15 million capital contribution, in the form of 
a contribution of Receivables.
    Columbia now requests a supplemental order authorizing an increase 
in the maximum aggregate capitalization that Columbia may have, 
directly or indirectly, in all Factoring Subsidiaries from the current 
$25 million to $85 million. Columbia requests that the Commission 
authorize Columbia Ohio to make an incremental $15 million investment 
in CORC and reserve jurisdiction over the additional requested 
investment of $45 million whether in CORC or in any other Factoring 
Subsidiary, pending completion of the record. In addition, without 
further order of the Commission in this proceeding, Columbia states it 
will not, directly or indirectly, form or acquire the securities of any 
Factoring Subsidiary other than CORC, nor will CORC be used to purchase 
receivables originated by any company other than Columbia Ohio. 
Columbia requests that the Commission reserve jurisdiction, pending 
completion of the record, over (i) the formation and acquisition of any 
securities of any Factoring Subsidiary other than CORC and (ii) the 
factoring by CORC of receivables originated by any company other than 
Columbia Ohio.
    Columbia states that the increase in the maximum aggregate 
capitalization for CORC is warranted in part due to the dramatic 
increase in the cost of gas since 1999, when the Prior Order was 
issued. Columbia states that it expects that the price of gas will 
continue to increase. All other terms, conditions and restrictions 
under the Prior Order will continue to apply to Columbia Energy and its 
subsidiaries.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
J. Lynn Taylor,
Assistant Secretary.
[FR Doc. 04-17770 Filed 8-3-04; 8:45 am]
BILLING CODE 8010-01-P