-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, MpYFyRO1FBttarWGOEf2Q70i8YqnThYLMiR2AZfJJsywj5DIrJ8/Bd1OEgFdYwf2 3TlLhXIhSt1TCiB5raxgoA== 0000007323-94-000016.txt : 19940503 0000007323-94-000016.hdr.sgml : 19940503 ACCESSION NUMBER: 0000007323-94-000016 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19940502 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARKANSAS POWER & LIGHT CO CENTRAL INDEX KEY: 0000007323 STANDARD INDUSTRIAL CLASSIFICATION: 4911 IRS NUMBER: 710005900 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: 1935 Act SEC FILE NUMBER: 070-05015 FILM NUMBER: 94525709 BUSINESS ADDRESS: STREET 1: PO BOX 551 STREET 2: 40TH FLOOR CITY: LITTLE ROCK STATE: AR ZIP: 72203 BUSINESS PHONE: 5013774000 MAIL ADDRESS: STREET 1: P O BOX 551 CITY: LITTLE ROCK STATE: AR ZIP: 72203 35-CERT 1 FILE NO. 70-5015 UNITED STATES OF AMERICA BEFORE THE SECURITIES AND EXCHANGE COMMISSION Washington, D. C. . . . . . . . . . . . . . . . . . . . . . . . . .. . . In the Matter of . . ARKANSAS POWER & LIGHT COMPANY . LOUISIANA POWER & LIGHT COMPANY . MISSISSIPPI POWER & LIGHT COMPANY . NEW ORLEANS PUBLIC SERVICE INC. . . File No. 70-5015 . ________________ . CERTIFICATE . PURSUANT TO In the Matter of . RULE 24 . SYSTEM FUELS, INC. . SYSTEM ENERGY RESOURCES, INC. . ARKANSAS POWER & LIGHT COMPANY . LOUISIANA POWER & LIGHT COMPANY . MISSISSIPPI POWER & LIGHT COMPANY . NEW ORLEANS PUBLIC SERVICE INC. . . File No. 70-5889 . File No. 70-7574 . File No. 70-7668 . . (Public Utility Holding Company Act of 1935) . . . . . . . . . . . . . . . . . . . . . . . . . .. . Pursuant to Rule 24 promulgated by the Securities and Exchange Commission (SEC) under the Public Utility Holding Company Act of 1935, modified by request in the application(s) - declaration(s) referenced above, this is to certify that the following transactions were carried out and borrowings made, during the quarter ended March 31, 1994, pursuant to System Fuels, Inc.'s (SFI) function as a supplier of fuel for the Entergy Corporation Operating Companies (System) in accordance with the terms and conditions of and for the purposes represented in the application(s) - declaration(s), as amended, and pursuant to the Orders of the SEC, indicated below: 70-5015 December 17, 1971 .................................. I 70-5889 April 28, 1978 ..................................... I 70-7574 January 31, 1989 ................................... II 70-7668 September 27, 1989 ................................. III 70-8331 December 29, 1993 .................................. IV I. File No. 70-5015 and File No. 70-5889 - 1994 Fuel Supply Programs Expenditures for SFI's fuel program for 1994 during the 1st quarter are indicated below: Net Expenditures During 1st Qtr (In Thousands) 1994 Fuel Supply Program: 1. Gas and Oil Development and Production $ 106 2. Nuclear Fuel Procurement 5,900 3. Fuel Oil Program (3,279) Total Expenditures 2,727 Less funds derived through amortization and depreciation charges: Amortization of Gas and Oil Development and Production Costs (411) Depreciation and other amortization (134) Total depreciation and amortization (545) Net Expenditures 2,182 (Increase) Decrease in: Outside financing 0 System Money Pool borrowings 1,449 Parent Companies borrowings 0 Total (increase) decrease in borrowings 1,449 (Increase) Decrease in working capital $ 3,631 1. Gas and Oil Development and Production Net Expenditures During 1st Qtr (In Thousands) Gas and Oil Development and Production $ 106 a) During the quarter, there was no drilling activity b) SFI produced, during the quarter, 198,000 MCF of natural gas and 12,600 barrels of oil from its Gas and Oil Development and Production Program (Program) which were sold to non-System parties. During the 1st quarter of 1994, all of SFI's natural gas production was sold to non-System parties. This condition is expected to continue indefinitely. As a result, SFI's expenditures in the Program are being limited to amounts required to protect its existing investments in the properties. As previously reported, amortization has exceeded SFI's investment in the program, and the first quarter's results are an added excess of $305,054 for a total of $2,068,107. No investments in new leases are being made at this time. c) Calculation of net proceeds(amortization) from sales to non-System parties from the Program used to amortize the investment in the Program: Net Expenditures During 1st Qtr (In Thousands) Sales to non-System parties: Natural Gas $ 438 Condensate 11 Crude Oil 154 Total 603 Miscellaneous income from non-System parties 61 Total 664 General and administrative expense (139) Operating expense (133) Interest expense 16 Amortization adjustment 3 Net proceeds $ 411 2. Nuclear Fuel Procurement (See Item III) Net Expenditures During 1st Qtr (In Thousands) Nuclear Fuel Procurement $ 5,900 Net Expenditures During 1st Qtr (In Thousands) Activities during the period: Expenditures for nuclear materials and processing services $ 5,661 General and administrative expense 24 Interest expense 215 Total 5,900 Sales of nuclear materials and processing services to System companies 0 Net effect on inventory $ 5,900 During the quarter, SFI's purchases totaled $5,661,000 for Nuclear materials and services for use in 1994. During the quarter, SFI had no sales of Nuclear materials and services . 3. Fuel Oil Program (See Item II) Net Expenditures During 1st Qtr (In Thousands) Fuel Oil Inventory $(3,279) a) Fuel Oil Inventory: Book Inventory as of: Barrels Value (In Thousands) December 31, 1993 2,070 31,596 March 31, 1994 1,790 $28,316 During 1st Qtr. Barrels Cost Sales price per barrel to System companies excluding period cost: #2 Fuel Oil 57,828 $24.84 #6 Fuel Oil 819,190 $ 9.85 During the quarter, SFI and Marathon Oil Company began discussions regrding the continuation of suspension of the fuel oil deliveries under a supply contract with Marathon dated April 15, 1982. Other than Marathon, SFI has no long term contracts for fuel oil. 4. Other Items: a) As of March 31, 1994, SFI's outstanding debt and Parent Companies investment consisted of: (In Thousands) Parent Companies: Common stock $ 20 Notes payable 34,000 Total 34,020 System Money Pool 26,779 Outside Financing: Bank borrowings 0 Total $60,799 b) As of January 1, 1987, SFI's employees were transferred to Entergy Services, Inc. (Entergy Services) where some of them continue to operate the continuing activities of SFI. For the 1st quarter of 1994, SFI was billed by Entergy Services, Inc. the following amounts for services performed for SFI that were previously performed by SFI employees. SFI also reimbursed Entergy Services, at cost, for other services received (financial, legal, administrative and other activities). Total During Jan Feb Mar 1st Qtr Cost of services charged to Service Requests established to track cost of functions previously performed by SFI personnel: Direct Cost: Labor and related cost $ 7,566 $ 33,435 $ 31,533 $ 72,534 Other direct cost 5,876 10,595 10,740 27,211 Indirect cost 3,982 7,952 7,786 19,720 Total 17,424 51,982 50,059 119,465 Cost of services charged to Service Requests not related to transfer of SFI personnel 97,290 95,763 78,641 271,694 Total cost of services performed by Entergy Services $114,714 $147,745 $128,700 $391,159 Amounts billed to Operating Companies for the Fuel Oil Program * $ 80,167 $104,332 $ 80,501 $265,000 Charged to Nuclear Fuel Procurement 5,581 5,835 6,180 17,596 Charged to Gas and Oil Development and Production 28,966 37,578 42,019 108,563 Total $114,714 $147,745 $128,700 $391,159 *Charged to the Fuel Oil Program as a component of period costs.For the 1st quarter of 1994 Fuel Oil Program period costs were allocated 15% to Arkansas Power & Light Company, 54% to Louisiana Power & Light Company, 19% to Mississippi Power & Light Company and 12% to New Orleans Public Service Inc. c) As previously reported, the System's fuels planning and procurement administration was reorganized during 1988, redefining the fuels management roles and placing the responsibility for most fuel procurement decisions with Entergy Corporation System Executives. SFI, utilizing Entergy Services personnel, continues to be responsible for gas and oil production, financing nuclear fuel inventory and fuel oil inventory and facilities, and accounting functions related to these continuing activities. II. File No 70-7574 Bank of America Agreement (B of A) During the quarter, SFI did not borrow or repay any loans under this financing agreement. Commitment fees of $18,750 were incurred onthe unused portion of the agreement. There was no average outstanding principal balance and no interest cost. As of March 31, 1994, the sum of the Aggregate Borrowing Base of Eligible Fuel Oil Inventory and Receivables was $10,950,000 and there were no borrowings outstanding under the B of A agreement. III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement (Yasuda) During the quarter, SFI did not borrow or repay any loans under this financing agreement. Commitment fees of $19,973 were incurred on the unused portion of the agreement. There was no average outstanding principal balance and no interest cost. As previously reported, the Yasuda credit agreement was amended, pursuant to SEC authorization (See HCAR No. 25634, dated September 17, 1992) to increase the commitment fees and margins payable on certain loans and to extend the termination date of the agreement to September 30, 1995. A copy of the amended credit agreement was filed. As of March 31, 1994, the book value of the nuclear fuel was $19,836,000 and there were no borrowings outstanding under the Yasuda agreement. IV. File No 70-8331 Entergy Corporation Revolving Credit Agreement (Entergy) Pursuant to the Order issued on March 16, 1994 (Release 35- 26006), SFI entered into a loan agreement with Entergy Corporation on March 21, 1994. The agreement allows SFI to borrow and reborrow from Entergy Corporation amount not to exceed $30,000,000 at any one time. This agreement terminates on December 31, 1996. During the quarter ended March 31, 1994, SFI did not borrow under this agreement. IN WITNESS WHEREOF, SFI has caused this certificate to be executed as of the 2nd of May, 1994. BY: /s/Glenn E. Harder Glenn E. Harder Treasurer and Assistant Secretary -----END PRIVACY-ENHANCED MESSAGE-----