[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
