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                                                     DA  96-1781 

                            Before the
                FEDERAL COMMUNICATIONS COMMISSION
                     Washington, D.C.  20554



In the Matter of                             )
                                        )
Application of Cinergy Communications, Inc. for        )
Determination of Exempt Telecommunications        )    File No. ETC-96-18
Company Status under Section 34 of the Public Utility  )
Holding Company Act of 1935, as added by          )
Section 103 of the Telecommunications Act of 1996 )    


                              ORDER


     Adopted: October 28, 1996                    Released: October 28, 1996


By the General Counsel:


     1.   On September 27, 1996, Cinergy Communications, Inc. ("Cinergy") filed an
application with the Commission for a determination of "exempt telecommunications company"
("ETC") status pursuant to section 34(a)(1) of the Public Utility Holding Company Act of 1935
("PUHCA"), as added by section 103 of the Telecommunications Act of 1996.  Cinergy's
application was placed on public notice for comment on the adequacy and accuracy of the
application on September 30, 1996.  Cinergy Communications, Inc., Public Notice, DA No. 96-
1637 (OGC released September 30, 1996).  No parties filed any comments.  As explained below,
Cinergy satisfies the statutory criteria to merit a positive determination of ETC status and its
application is therefore granted. 

     2.   Cinergy represents that it is a Delaware corporation and an indirect wholly-owned
subsidiary of Cinergy Corp., a registered public utility holding company under PUHCA. 
Cinergy will be engaged, directly or indirectly, through one or more "affiliates," (as defined in
PUHCA section 2(a)(11)(B)), and exclusively in the business of providing telecommunications
services, information services, other services or products subject to the jurisdiction of the
Commission, and/or products or services that are related or incidental to the provision of such
products or services within the meaning of PUHCA section 34(a)(1).

     3.   Specifically, Cinergy intends to sell or lease long-haul fiber capacity on a
wholesale basis to affiliates or nonaffiliates.  These transactions will involve the provision of
bulk communications capacity to such parties, who in turn may resell the capacity to other third
parties.  In addition, Cinergy intends to provide energy management and other services to energy
consumers and other nonaffiliated entities.  Such services could include applications such as
remote utility meter reading, automatic power outage reporting, remote lighting turn-on/turn-off,
real-time energy pricing with respect to operation of major household electricity-consuming
appliances, and security services involving remote alarm monitoring and response.  In addition,
Cinergy may offer services to personal communications services ("PCS") license holders for the
establishment and maintenance of PCS networks.  Cinergy may also offer voice and data mobile
radio communications services to Cinergy's public utility subsidiaries and their customers as well
as to nonaffiliates.  These services, to the extent offered to Cinergy's public utility subsidiaries,
would be used to maintain the reliability of Cinergy's gas and electric system and would involve
the transmission of data between service vehicles and home offices. 

     4.   Based upon the representations contained in Cinergy's application, Cinergy merits
a determination that it is an exempt telecommunications company as that term is defined in
PUHCA section 34(a)(1), as amended.

     5.   Accordingly, IT IS ORDERED that the application of Cinergy IS GRANTED.  IT
IS FURTHER ORDERED that the Securities and Exchange Commission SHALL BE
NOTIFIED of this determination.


                         FEDERAL COMMUNICATIONS COMMISSION




                         William E. Kennard
                         General Counsel