-----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, SyvoPuTudx4gjWWgl+YzR5XGLz1ju424U7f0lxuOy9o8N0XXRx3vOQmqmFt98LKS DiodU4ZthfnjMwRIGUlNOw== 0000007323-98-000005.txt : 19980504 0000007323-98-000005.hdr.sgml : 19980504 ACCESSION NUMBER: 0000007323-98-000005 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980430 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: 98606503 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: 721229752 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 35-CERT SEC ACT: SEC FILE NUMBER: 070-05889 FILM NUMBER: 98606504 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: 98606505 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 March, 1998, 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 - 1998 Fuel Supply Programs Expenditures for SFI's fuel program for 1998 during the 1st quarter are indicated below: Net Expenditures (In Thousands) 1st Quarter 1998 Fuel Supply Program: 1. Gas and Oil Development and Production $ 5,607 2. Nuclear Fuel Procurement 671 3. Fuel Oil Program (9,432) ---------- TOTAL EXPENDITURES (3,154) ---------- Less funds derived through amortization & depreciation Charges Amortization of Gas & Oil Development & Production Costs 0 Depreciation & Other Amortization (91) ---------- TOTAL depreciation & amortization (91) ---------- Net Expenditures (3,245) (Increase) decrease in: Outside financing - System Money Pool borrowings (6,862) TOTAL (increase)decrease ---------- in borrowings (6,862) ---------- Increase (decrease) in working Capital $ 10,107 ========== 1. Gas and Oil Development and Production Net Expenditures (In Thousands) 1st Quarter Gas and Oil Development and Production $ 5,607 ========== 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. As of March 31, 1998, an additional $5.6 million were distributed to the parent companies of SFI, increasing the total distribution, from this program, to $9.1 million since year-end 1996. Currently, accumulated net proceeds of approximately $350,000 are retained at SFI for the continuing shutdown activities. Calculation of the net expenditures (proceeds) from the continuing shutdown activities of the Program, is: Net Expenditures (In Thousands) 1st Quarter Sales to non-System parties: Natural gas $ - Condensate - Crude oil - --------- TOTAL - Miscellaneous income (including - sale of assets) --------- TOTAL - General and administrative expense - Operating expense 7 Interest expense - Amortization adjustment (7) --------- Net proceeds $ - ========= 2. Nuclear Fuel Procurement (See Item III) Net Expenditures (In Thousands) 1st Quarter Nuclear Fuel Procurement $ 671 ========= Net Expenditures (In Thousands) 1st Quarter Activities during the period: Expenditures for nuclear materials and processing services $ 361 General and administrative expense 136 Interest expense 782 ------- TOTAL 1,279 Sales of nuclear materials and ------- processing services to System companies 608 ------- Net effect on inventory $ 671 ======= During the 1st quarter of 1998, SFI's purchases of nuclear materials and services totaled approximately $1.3 million. During this reporting period, SFI had sales of nuclear materials and services, totaling $608,000. 3. Fuel Oil Program (See Item II) Net Expenditures (In Thousands) 1st Quarter Fuel Oil Inventory $(9,432) ======== a) Fuel Oil Inventory: Barrels Book Value Inventory as of: (In Thousands) March 31, 1998 2,073 31,647 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 During 1st Quarter (In Thousands) Barrels Value Sales price per barrel to System companies excluding period cost: #2 Fuel Oil 25 24.98 #6 Fuel Oil 2,508 15.55 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 first quarter, SFI purchased 883,701 barrels of Bunker Grade oil from Marathon, and sold this product to a third party for approximately $10.1 million. 4. Other Items: a) As of March 31,1998, 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 62,716 Banks 0 ------- TOTAL $96,736 ======= 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 1st quarter of 1998, SFI was billed by Entergy Services for the following amounts: Total January February March 1st 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 $ 2,383 $ 3,985 $ 4,154 $ 10,522 Other direct cost 1,066 1,570 856 3,492 Indirect Cost 445 379 559 1,383 -------- ------- -------- -------- TOTAL 3,894 5,934 5,569 15,397 -------- ------- -------- -------- Cost of services charged to Service Requests not related to transfer of SFI personnel: 75,345 97,119 96,304 268,768 -------- -------- -------- -------- Total cost of services performed by Entergy Services $ 79,239 $103,053 $101,873 $284,165 ======== ======== ======== ======== Amounts billed to Operating Companies for the Fuel Oil Program* $ 38,286 $ 59,933 $ 50,915 $149,134 Charged to Nuclear Fuel Procurement 40,953 43,120 50,958 135,031 -------- ------- -------- -------- TOTAL $ 79,239 $103,053 $101,873 $284,165 ======== ======== ======== ======== Charged to the Fuel Oil Program as a component of period costs. Effective January 1, 1998, Fuel Oil Program period costs are recorded by plant, to the extent possible, and direct billed to the operating company that owns the facility where incurred. Costs which cannot be directly associated with a facility or an operating company, continue to be allocated as before. For the 1st quarter of 1998, such Fuel Oil Program period costs were allocated 8.9% to ENTERGY ARKANSAS, INC., 56.1% to ENTERGY LOUISIANA, INC., 25.4% to ENTERGY MISSISSIPPI, INC., and 9.6% 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. On September 2, 1997, SFI filed an Application-Declaration, on Form U-1, with the SEC, in File No. 70-9103 (the "U-1"). SFI has requested authorization, among other things, for it to function as a supplier of transmission and distribution related equipment and materials for the Entergy Corporation Operating Companies. Also requested, is 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 is 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) This loan agreement expired September 26, 1997 and was not renewed nor replaced. IV. File No 70-8331 Entergy Corporation Revolving Credit Agreement (Entergy) As indicated previously, in a 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 30th of April 1998. ENTERGY ARKANSAS, INC. ENTERGY LOUISIANA, INC. ENTERGY MISSISSIPPI, INC. ENTERGY NEW ORLEANS, INC. SYSTEM ENERGY RESOURCES, INC. ENTERGY CORPORATION BY: /s/Naomi A. Nakagama ------------------------ Naomi A. Nakagama Senior Vice President- Finance and Treasurer SYSTEM FUELS, INC. BY: /s/Naomi A. Nakagama ------------------------ Naomi A. Nakagama Senior Vice President- Finance, Treasurer And Assistant Secretary -----END PRIVACY-ENHANCED MESSAGE-----