-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NbNkZC6hbco75Z2ExX5QocSbICqDtnAKUF1JDJk1mlsoYduVUSw6lljRZOwLaRht HGORWP2b3AdpmoP7zlc7bg== 0000007323-98-000001.txt : 19980202 0000007323-98-000001.hdr.sgml : 19980202 ACCESSION NUMBER: 0000007323-98-000001 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980130 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY ARKANSAS INC CENTRAL INDEX KEY: 0000007323 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 710005900 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: SEC FILE NUMBER: 070-05015 FILM NUMBER: 98518410 BUSINESS ADDRESS: STREET 1: 425 WEST CAPITOL AVE STREET 2: 40TH FLOOR CITY: LITTLE ROCK STATE: AR ZIP: 72201 BUSINESS PHONE: 5013774000 MAIL ADDRESS: STREET 1: P O BOX 551 CITY: LITTLE ROCK STATE: AR ZIP: 72203 FORMER COMPANY: FORMER CONFORMED NAME: ARKANSAS POWER & LIGHT CO DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY CORP /DE/ CENTRAL INDEX KEY: 0000065984 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 135550175 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: SEC FILE NUMBER: 070-05889 FILM NUMBER: 98518411 BUSINESS ADDRESS: STREET 1: 639 LOYOLA AVE CITY: NEW ORLEANS STATE: LA ZIP: 70113 BUSINESS PHONE: 5045295262 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY GSU HOLDINGS INC /DE/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY CORP /FL/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: MIDDLE SOUTH UTILITIES INC DATE OF NAME CHANGE: 19890521 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYSTEM FUELS INC CENTRAL INDEX KEY: 0000096035 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: SEC FILE NUMBER: 070-07574 FILM NUMBER: 98518412 BUSINESS ADDRESS: STREET 1: NORO PLAZA STREET 2: 639 LOYOLA AVENUE PO BOX 61000 CITY: NEW ORLEANS STATE: LA ZIP: 70181 BUSINESS PHONE: 0000000000 MAIL ADDRESS: STREET 1: PO BOX 61000 STREET 2: 639 LOYOLA AVENUE CITY: NEW ORLEANS STATE: LA ZIP: 70181 35-CERT 1 UNITED STATES OF AMERICA BEFORE THE SECURITIES AND EXCHANGE COMMISSION Washington, D. C. . . . . . . . . . . . . . . . . . . . . . . . . . . . In the Matter of . . ENTERGY ARKANSAS, INC. . ENTERGY LOUISIANA, INC. . ENTERGY MISSISSIPPI, INC. . ENTERGY NEW ORLEANS, INC. . . File No. 70-5015 . ________________ CERTIFICATE PURSUANT TO In the Matter of RULE 24 . SYSTEM FUELS, INC. . SYSTEM ENERGY RESOURCES, INC. . ENTERGY ARKANSAS, INC. . ENTERGY LOUISIANA, INC. . ENTERGY MISSISSIPPI, INC. . ENTERGY NEW ORLEANS, 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 December, 1997, 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 March 16, 1994 ..................................... IV I. File No. 70-5015 and File No. 70-5889 - 1997 Fuel Supply Programs Expenditures for SFI's fuel program for 1997 during the 3rd quarter and year to date are indicated below: Net Expenditures (In Thousands) 4th Quarter Year to Date 1997 Fuel Supply Program: 1. Gas and Oil Development and Production $ 0 $ (9) 2. Nuclear Fuel Procurement (10,501) (2,699) 3. Fuel Oil Program 17,605 6,908 ________ __________ TOTAL EXPENDITURES 7,104 4,230 ________ __________ Less funds derived through amortization & depreciation charges Amortization of Gas & Oil Development & Production Costs (5,624) (5,625) Depreciation & Other amortization (72) (363) _______ _______ TOTAL depreciation & amortization (5,696) (5,988) Net Expenditures 1,408 (1,758) (Increase) decrease in: Outside financing - - System Money Pool borrowings (9,877) 583 _______ _______ TOTAL (increase)decrease in borrowings (9,877) 583 _______ _______ Increase (decrease) in working capital $ 8,469 $ 1,174 ======== ========= 1. Gas and Oil Development and Production Net Expenditures (In Thousands) 4th Quarter Year to Date Gas and Oil Development and Production $ - $ - Effective July 1, 1996, SFI sold its interest in the properties associated with its Gas and Oil Development and Production Program (the "program"). During this quarter, SFI had insignificant expenditures relative to the continuing shutdown of this operation. At December 31, 1997, Income tax benefits of approximately $5.6 million were credited to this discontinued program resulting from the adjustment needed to the recorded book estimate for 1996's Income Tax Expense when compared to the actual Return for the same period. As previously reported, SFI distributed $3.5 million of the accumulated net proceeds to its parent companies, on December 31, 1996. Currently, accumulated net proceeds of approximately $6.0 are to be distributed to the parent companies. Calculation of the net expenditures (proceeds) from the continuing shutdown activities of the Program, is: Net Expenditures (In Thousands) 4th Quarter Year to Date Sales to non-System parties: Natural gas $ - $ - Condensate - - Crude oil - - TOTAL - - Miscellaneous income (including - (3) sale of assets) TOTAL - (3) General and administrative expense (5,613) (5,616) Operating expense - (566) Interest expense - - Amortization adjustment 10 8 _________ ________ Net proceeds $(5,603) $(5,605) ========= ======== 2. Nuclear Fuel Procurement (See Item III) Net Expenditures (In Thousands) 4th Quarter Year to Date Nuclear Fuel Procurement $(10,501) $(2,669) _________ ________ Net Expenditures (In Thousands) 4th Quarter Year to Date Activities during the period: Expenditures for nuclear materials and processing services $28,283 $32,993 General and administrative expense (792) (318) Interest expense 842 3,571 ________ ________ TOTAL 28,333 36,246 ________ ________ Sales of nuclear materials and processing services to System companies 38,834 38,915 ________ _______ Net effect on inventory $(10,501) $(2,669) ========= ======== During the 4th quarter of 1997, SFI's purchases of nuclear materials and services totaled $28.3 million. During this reporting period, SFI had sales of nuclear materials and services, totalling $38.8 million. 3. Fuel Oil Program (See Item II) Net Expenditures (In Thousands) 4th Quarter Year to Date Fuel Oil Inventory $17,605 $ 6,908 ======= ======= a) Fuel Oil Inventory: Barrels Book Value Inventory as of: (In Thousands) December 31, 1997 2,099 41,079 September 30, 1997 1,220 23,474 June 30, 1997 1,368 27,319 March 31, 1997 1,255 26,319 December 31, 1996 1,657 34,171 During 4th Quarter (In Thousands) Barrels Value Sales price per barrel to System companies excluding period cost: #2 Fuel Oil 16,539 25.35 #6 Fuel Oil 2,260,543 16.97 SFI has a fuel oil contract with Marathon Oil Company dated April 15, 1982 that was originally scheduled to terminate on December 31, 1996. On January 1, 1994 Marathon breached the contract by refusing to deliver product and on December 29, 1994 SFI filed suit against Marathon in federal court in New Orleans, Louisiana. During the first quarter 1996, SFI and Marathon reached a negotiated settlement to the dispute, and Marathon resumed delivery. However, a different grade of fuel oil was substituted for the fuel oil originally required to be delivered under the contract. Deliveries of the substitute fuel oil began on March 1, 1996 and will continue through February 28, 1999. During the fourth quarter, SFI purchased 1,054,288 barrels of Bunker Grade oil from Marathon, and sold this product to a third party for approximately $16.7 million. 4. Other Items: a) As of December 31, 1997, SFI's outstanding debt and Parent Companies investment consisted of: Parent Companies: In Thousands Common Stock $ 20 Notes payable 34,000 _______ TOTAL 34,020 System Money Pool 55,854 Banks 0 _______ TOTAL $89,874 ======= b) As of January 1, 1987, SFI's employees were transferred to Entergy Services, Inc. (Entergy Services). Entergy Services bills SFI for labor associated with the operation of continuing activities for SFI and other services provided to SFI (financial, legal, administrative, and other activities). For the 4th quarter of 1997, SFI was billed by Entergy Services for the following amounts: Total October November December 4th Qtr Cost of service charged to Service Requests established to track cost of functions previously performed by SFI personnel: Direct Cost: Labor and related cost $ 5,377 $ 3,668 $ 4,201 $ 13,246 Other direct cost 944 569 511 2,024 Indirect Cost 460 329 420 1,209 _____ _____ _____ ______ TOTAL 6,781 4,566 5,132 16,479 _____ _____ _____ ______ Cost of services charged to Service Requests not related to transfer of SFI personnel: 91,141 46,871 98,791 236,803 ______ ______ ______ _______ Total cost of services performed by Entergy Services $ 97,922 $ 51,437 $103,923 $253,282 ======== ======== ======== ======== Amounts billed to Operating Companies for the Fuel Oil Program $ 51,932 $(8,856) $ 24,094 $ 67,170 Charged to Nuclear Fuel Procurement 45,990 60,293 79,829 186,112 ________ ________ ________ ________ TOTAL $ 97,922 $ 51,437 $103,923 $253,282 ======== ======== ======== ======== * Charged to the Fuel Oil Program as a component of period costs. For the 4th quarter of 1997 Fuel Oil Program period costs were allocated 8% to ENTERGY ARKANSAS, INC., 56% to ENTERGY LOUISIANA, INC., 26% to ENTERGY MISSISSIPPI, INC., and 10% to ENTERGY NEW ORLEANS, 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 shut down, financing nuclear fuel inventory and fuel oil inventory and facilities, and accounting functions related to these continuing activities. During the third quarter, SFI filed an Application-Declaration, on Form U-1 in File No. 70-9103 (the "U-1"), with the SEC requesting authorization, among other things, (I) for SFI to function as a supplier of transmission and distribution related equipment and materials for the Entergy Corporation Operating Companies, and (ii) for Entergy Gulf States, Inc. to acquire an ownership interest in SFI and assume a share of the debt financing for SFI on the same proportionate basis as the other operating companies. The U-1 is pending, and an amendment id forthcoming. II. File No 70-7574 Bank of America Agreement This financing agreement expired January 31, 1996. III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement (Yasuda) As indicated in the previous filing pursuant to the SEC order dated November 27, 1996, (Release No. 35-26617) in File No. 70-8899, activity pertaining to this loan agreement will be reported by Entergy Services, Inc. under File No. 70-8899. This loan agreement expired September 26, 1997 and will not be renewed. IV. File No 70-8331 Entergy Corporation Revolving Credit Agreement (Entergy) As indicated in the previous filing pursuant to the SEC order dated November 26, 1996, (Release No. 35-26617) in File No. 70-8899, activity pertaining to this loan agreement will be reported by Entergy Services, Inc. under File No. 70-8899. IN WITNESS WHEREOF, SFI has caused this certificate to be executed as of the 29th of January, 1998. ENTERGY ARKANSAS, INC. ENTERGY LOUISIANA, INC. ENTERGY MISSISSIPPI, INC. ENTERGY NEW ORLEANS, INC. SYSTEM ENERGY RESOURCES, INC. ENTERGY CORPORATION BY: /s/William J. Regan ________________________ William J. Regan Vice President and Treasurer SYSTEM FUELS, INC. BY: /s/William J. Regan ____________________________ William J. Regan Vice President, Treasurer and Assistant Secretary -----END PRIVACY-ENHANCED MESSAGE-----