-----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, srWVCAS8qaNiU/FRlOXZgdBThLnaPvBPNHuFgewevvKFh2ohwW6OSwMB/sM2H+px O7I4PQflOW8b1+DbCJPggw== 0000007323-94-000021.txt : 19940729 0000007323-94-000021.hdr.sgml : 19940729 ACCESSION NUMBER: 0000007323-94-000021 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19940728 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: 94540368 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 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 . ---------------- In the Matter of . . SYSTEM FUELS, INC. . ENTERGY CORPORATION . . File No. 70-8331 . . (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 June 30, 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 2nd quarter and year to date are indicated below: Net Expenditures During Year 2nd Qtr To Date (In Thousands) 1994 Fuel Supply Program: 1. Gas and Oil Development and Production ......... $ 79 $ 186 2. Nuclear Fuel Procurement ....................... 23,213 29,113 3. Fuel Oil Program ............................... (898) (4,177) -------- --------- Total Expenditures .................................... 22,395 25,122 -------- --------- Less funds derived through amortization and depreciation charges: Amortization of Gas and Oil Development and Production Costs ................................. 125 (287) Depreciation and other amortization ................ (171) (304) -------- -------- Total depreciation and amortization ................... (46) (591) --------- -------- Net Expenditures ...................................... 22,349 24,531 (Increase) Decrease in: Outside financing .................................. (23,000) (23,000) System Money Pool borrowings ....................... 13,984 12,535 Parent Companies borrowings ........................ 0 0 --------- -------- Total (increase) decrease in borrowings ............... (9,016) (10,465) --------- -------- (Increase) Decrease in working capital ................$ 13,333 $ 14,066 ========= ======== 1. Gas and Oil Development and Production Net Expenditures During Year 2nd Qtr To Date (In Thousands) Gas and Oil Development and Production ............. $ 79 $ 186 ======== ======== a) During the quarter, there was no drilling activity b) SFI produced, during the quarter, 234,000 MCF of natural gas and 14,000 barrels of oil from its Gas and Oil Development and Production Program (Program) which were sold to non-System parties. During the 2nd 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 expenditures in the Program are being limited to amounts required to protect its existing investments in the properties. No investments in new leases are being made at this time. As previously reported, amortization continues to exceed SFI's investment in this program. Excess amortization, during this quarter, was eroded by the payment of a judgment rendered in a thirteen year old lawsuit. The net effect was $204,000 reduction of the accumulated excess, which now stands at $1,863,795, at June 30, 1994. (c) Calculation of net proceeds from sales to non-System parties from the Program used to amortize the investment in the Program: Net Expenditures During Year 2nd Qtr To Date (In Thousands) Sales to non-System parties: Natural Gas .................................. $ 161 $ 599 Condensate ................................... 19 30 Crude Oil .................................... 106 259 --------- -------- Total ......................................... 286 888 Miscellaneous income from non-System parties.. 71 132 --------- -------- Total ......................................... 357 1,020 General and administrative expense ............ (88) (228) Operating expense ............................. (258) (391) Interest expense .............................. (161) (145) Amortization adjustment ....................... 25 31 -------- ------- Net proceeds .................................. $ (125) $ 287 ======== ======= 2. Nuclear Fuel Procurement (See Item III) Net Expenditures During Year 2nd Qtr To Date (In Thousands) Nuclear Fuel Procurement ........................... $ 23,213 $ 29,113 ======== ======== Net Expenditures During Year 2nd Qtr To Date (In Thousands) Activities during the period: Expenditures for nuclear materials and processing services ..................................... $ 22,645 $ 28,306 General and administrative expense .............. 52 76 Interest expense ................................ 516 731 --------- -------- Total ........................................... 23,213 29,113 -------- -------- Sales of nuclear materials and processing services to System companies ................. 0 0 -------- -------- Net effect on inventory ........................... $ 23,213 $ 29,113 ======== ======== During the quarter, SFI's purchases totaled $22.6 million for nuclear materials and services. SFI entered into contracts for the supply of 2.673 million puounds of U3O8. SFI had no sales of nuclear materials and services during this reporting period. 3. Fuel Oil Program (See Item II) Net Expenditures During Year 2nd Qtr To Date (In Thousands) Fuel Oil Inventory ................................. $ (898) $ (4,177) ======== ======== 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 June 30, 1994 ................................ 1,652 $ 27,418 During 2nd Qtr. Barrels Cost Sales price per barrel to System companies excluding period cost: #2 Fuel Oil ............................... 47,032 $ 24.75 #6 Fuel Oil ............................... 972,477 $ 10.36 During this quarter, there was no resolution between SFI and Marathon Oil Company regarding the continuation of suspension of the fuel oil deliveries under the April, 1982 supply contract. Discussions continue. Other than Marathon, SFI has no long term contracts for fuel oil. 4. Other Items: a) As of June 30, 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 ............................ 12,795 -------- Outside Financing: Bank borrowings ........................... 23,000 -------- Total ........................................ $ 69,815 ======== 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 2nd 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 Apr May Jun 2nd 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 $ 31,854 $ 39,510 $ 31,906 $103,270 Other direct cost ..... 14,025 9,862 530 24,417 Indirect cost ............ 7,857 4,834 3,774 16,465 -------- -------- --------- -------- Total .............. 53,736 54,206 36,210 144,152 -------- -------- --------- -------- Cost of services charged to Service Requests not related to transfer of SFI personnel. 125,143 95,674 337,587 558,404 -------- -------- --------- -------- Total cost of services performed by Entergy Services .................... $178,879 $149,880 $373,797 $702,556 ======== ======== ======== ======== Amounts billed to Operating Companies for the Fuel Oil Program * ................... $119,053 $ 98,914 $242,872 $460,839 Deferred Cost/Services....... 2,139 747 (3,073) (187) Charged to Nuclear Fuel Procurement ................. 6,891 5,555 25,120 37,566 Charged to Gas and Oil Development and Production .. 50,796 44,664 108,878 204,338 -------- -------- -------- -------- Total .................... $178,879 $149,880 $373,797 $702,556 ======== ======== ======== ======== * Charged to the Fuel Oil Program as a component of period costs. For the 2nd 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 borrowed $8,000,000 under this financing agreement. Commitment fees of $11,375 were incurred on the unused portion of the agreement. The average outstanding principal balance, for the quarter, was $5,538,000 and interest cost totaled $66,500.00. As of June 30, 1994, the sum of the Aggregate Borrowing Base of Eligible Fuel Oil Inventory and Receivables was $17,584,000 and $8,000,000 was outstanding under the B of A agreement. III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement (Yasuda) During the quarter, SFI borrowed $15,000,000 under this financing agreement. Commitment fees of $13,463 were incurred on the unused portion of the agreement. The average outstanding principal balance, for the quarter, was $10,385,000 and interest cost totaled $119,766. 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 with the SEC. As of June 30, 1994, the book value of the nuclear fuel was $43,050,000 and there was $15,000,000 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, (Realease 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 amounts not to exceed $30,000,000 at any one time. This agreement terminates on December 31, 1996. During the quarter ended June 30, 1994, SFI did not borrow under this agreement. IN WITNESS WHEREOF, SFI has caused this certificate to be executed as of the 27th of July, 1994. ARKANSAS POWER & LIGHT COMPANY LOUISIANA POWER & LIGHT COMPANY MISSISSIPPI POWER & LIGHT COMPANY NEW ORLEANS PUBLIC SERVICE INC. SYSTEM ENERGY RESOURCES, INC BY: /s/Glenn E. Harder Glenn E. Harder Vice President - Financial Strategies and Treasurer ENTERGY CORPORATION BY: /s/Glenn E. Harder Glenn E. Harder Treasurer SYSTEM FUELS, INC. BY: /s/Glenn E. Harder Glenn E. Harder Treasurer and Assistant Secretary -----END PRIVACY-ENHANCED MESSAGE-----