-----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, R62XEFFsGJ3kVSUU2TsfpF3ldKywDvdnM9RQXNqS7nspGbnn4I/xonPExmaOYO3f TgTedYOFJLs7XSd2OHWxeA== 0000065984-95-000009.txt : 19950420 0000065984-95-000009.hdr.sgml : 19950420 ACCESSION NUMBER: 0000065984-95-000009 CONFORMED SUBMISSION TYPE: U5S/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19931231 FILED AS OF DATE: 19950419 SROS: NONE 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: U5S/A SEC ACT: 1935 Act SEC FILE NUMBER: 001-11299 FILM NUMBER: 95529712 BUSINESS ADDRESS: STREET 1: PO BOX 61000 CITY: NEW ORLEANS STATE: LA ZIP: 70161 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 U5S/A 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM U5S/A ANNUAL REPORT For the Year Ended December 31, 1993 Filed Pursuant to the Public Utility Holding Company Act of 1935 by ENTERGY CORPORATION 639 Loyola Avenue New Orleans, Louisiana 70113 The attached audited financial statements are being filed by this amendment to Entergy Corporation's U5S for the year ended December 31, 1993, pursuant to commitments to do so made to the Commission Staff during the audit visit with respect to Entergy Services, Inc. Entergy Power Development Corporation Consolidated Financial Statements for the Years Ended December 31, 1993 and 1992 and Independent Auditors' Report ENTERGY POWER DEVELOPMENT CORPORATION AND SUBSIDIARY CONSOLIDATED FINANCIAL STATMENTS TABLE OF CONTENTS DESCRIPTION PAGE NO. Independent Auditors' Report 1 Consolidated Balance Sheets 2 Consolidated Statements of Income 3 Consolidated Statements of Retained Earnings 4 Consolidated Statements of Cash Flows 5 Notes to Consolidated Financial Statements 6 - 7 INDEPENDENT AUDITORS' REPORT To the Shareholder of Entergy Power Development Corporation We have audited the accompanying consolidated balance sheets of Entergy Power Development Corporation as of December 31, 1993 and 1992, and the related consolidated statements of income, retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the Company at December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. As discussed in Note 1 an equity investee of the Company is currently involved in negotiations to amend a power sales contract under which it may be in default. It is uncertain what impact any potential amendment will have on the Company's ability to recover its investment. /s/ Deloitte & Touche LLP DELOITTE & TOUCHE LLP December 6, 1994 ENTERGY POWER DEVELOPMENT CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS AT DECEMBER 31, 1993 AND 1992 ASSETS 1993 1992 INVESTMENTS: Investment in Richmond Power Enterprises LP $11,755,000 $12,500,000 ----------- ----------- CURRENT ASSETS: Cash 181,203 12,500,000 Temporary cash investments 12,869,560 - ----------- ----------- Total cash and cash equivalents 13,050,763 12,500,000 Accounts receivable: Associated companies 5,000 - Other 96 - Interest receivable 3,002 - Prepaid taxes 578,922 - ----------- ----------- Total 13,637,783 12,500,000 ----------- ----------- DEFERRED DEBITS: Organizational costs 539,448 712,128 ----------- ----------- Total $25,932,231 $25,712,128 =========== =========== LIABILITIES AND CAPITALIZATION CAPITALIZATION : Common stock, no par value, 25,000 shares issued and outstanding $25,000,000 $25,000,000 Retained earnings 465,912 - ----------- ----------- Total 25,465,912 25,000,000 ----------- ----------- CURRENT LIABILITIES: Accounts payable: Associated companies 86,976 10,035 Other 75,809 702,093 ----------- ----------- Total 162,785 712,128 ----------- ----------- DEFERRED CREDITS: Accumulated deferred income taxes 303,534 - ----------- ----------- Total $25,932,231 $25,712,128 =========== =========== See Notes to Consolidated Financial Statements ENTERGY POWER DEVELOPMENT CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 REVENUES: Equity in Earnings of Richmond Power Enterprises, LP $1,010,000 $ - Interest income 407,444 - ---------- ----------- Total 1,417,444 - ---------- ----------- EXPENSES: Amortization 639,868 - Outside services 14,087 - Taxes other than income 500 - Administrative and general 449 - ---------- ----------- Total 654,904 - ---------- ----------- INCOME BEFORE INCOME TAXES 762,540 - ---------- ----------- Income taxes- federal 1,182 - Income taxes- state (8,088) - Deferred income taxes- federal 249,694 - Deferred income taxes- state 53,840 - ---------- ----------- Total 296,628 - ---------- ----------- NET INCOME $465,912 $ - ========== =========== See Notes to Consolidated Financial Statements ENTERGY POWER DEVELOPMENT CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 Retained Earnings, January 1 - $ - Add: Net Income $465,912 - ---------- ----------- Retained Earnings, December 31 $465,912 $ - ========== =========== See Notes to Consolidated Financial Statements ENTERGY POWER DEVELOPMENT CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 OPERATING ACTIVITIES: Net Income $465,912 $ - Noncash items included in net income: Equity in earnings of unconsolidated subsidiary (1,010,000) - Amortization 639,868 - Deferred income taxes 303,534 - Changes in working capital: Receivables (5,096) - Accounts payable (549,343) $712,128 Prepaid taxes (578,922) - Other current assets (3,002) - Net cash flow provided (used) by operating ---------- ----------- activities (737,049) 712,128 ---------- ----------- INVESTING ACTIVITIES: Investment returned 1,250,000 - Investment in nonregulated properties - (12,500,000) Organizational costs 37,812 (712,128) Net cash flow provided (used) by investing ---------- ----------- activities 1,287,812 (13,212,128) ---------- ----------- FINANCING ACTIVITIES: Issuance of common stock - 25,000,000 ---------- ----------- Net increase in cash and cash equivalents 550,763 12,500,000 Cash and cash equivalents at beginning of year 12,500,000 - ----------- ----------- Cash and cash equivalents at end of year $13,050,763 $12,500,000 =========== =========== Supplemental Disclosure of Cash Flow Information Cash paid during the period for: Income taxes $572,016 - See Notes to Consolidated Financial Statements ENTERGY POWER DEVELOPMENT CORPORATION AND SUBSIDIARY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Entergy Power Development Corporation (the Company) is a wholly owned subsidiary of Entergy Corporation (Entergy) chartered in 1992. The Company was created as an Exempt Wholesale Generator (EWG) holding company under the provisions of the Energy Act, and through its subsidiary (which is also an EWG), Entergy Richmond Power Corporation, owns a 50% interest in Richmond Power Enterprises LP (RPELP), which owns a 250-MW gas- fired, combined-cycle independent power plant in Richmond, Virginia. RPELP is jointly-owned and operated by the Enron Power Corporation, a developer of independent power projects. RPELP has a 25-year contract to sell electricity to Virginia Electric and Power Company. The Company's investment in RPELP is recorded on the equity basis. Entergy Corporation has been notified by Enron that the facility did not meet the FERC efficiency test to maintain qualifying facility status as required by the contract with VEPCO. Enron has indicated that the facility has met the test in 1994. The failure to meet the test prior to 1994 could result in a potential default under the VEPCO contract. However, Entergy Richmond Power Corporation, Enron, and VEPCO are currently involved in negotiations to amend the contract to resolve this issue. Summarized financial information of RPELP during the periods of Entergy Richmond Power Corporation's investment is as follows: 1993 1992 (In Thousands) Net plant $124,212 $127,670 Current and other assets $ 18,873 $ 16,864 Long term debt $127,901 $133,718 Current and other liabilities $ 13,902 $ 8,938 Revenues $ 36,823 - Net Income $ 1,945 - Depreciation and Amortization Depreciation of RPELP's power plant is computed on the straight-line method over the estimated useful life. Excess of purchase price over book value of the Company's investment in RPELP ($11,114,000 at December 31, 1993) is being amortized over a 23 year period. Cash and Cash Equivalents All unrestricted highly liquid debt instruments purchased with an original maturity of three months or less are considered to be cash equivalents. NOTE 2. INCOME TAXES Effective January 1, 1993, the Company adopted Statement of Financial Accounting Standard (SFAS) 109. This new standard requires that deferred income taxes be recorded for all temporary differences and carry forwards, and that deferred tax balances be based on enacted tax laws at tax rates that are expected to be in effect when the temporary differences reverse. Since the Company was formed in December 1992, there is no cumulative effect of the adoption of SFAS 109. The Company joins its parent and the other Entergy subsidiaries in filing a consolidated Federal income tax return. Income taxes (or benefits) are allocated to the Company in proportion to its contribution to consolidated taxable income. There are temporary differences in reporting certain items for financial statement and Federal income tax purposes. The principal differences relate to the period of depreciation of the cost of RPELP's power plant and the accounting for organization expenses. Deferred income taxes are provided for these temporary differences. The Company files a consolidated Arkansas state income tax return with certain other Entergy subsidiaries. NOTE 3. COMMON STOCK The Company is authorized, by its Charter, to issue 100,000 shares of its common stock. During 1992, the Company sold 25,000 shares of its common stock to Entergy at $1,000 per share. The proceeds of this sale were used primarily to fund the Company's investment in Richmond Power Enterprises LP. NOTE 4. SUBSEQUENT EVENT (Unaudited) In August 1994 the Company invested $50 million in Entergy Pakistan, which in turn invested $50 million for a 10% interest in the Hub River Company, which is constructing an electric generating station near Karachi, Pakistan. Entergy Richmond Power Corporation Financial Statements for the Years Ended December 31, 1993 and 1992 and Independent Auditors' Report ENTERGY RICHMOND POWER CORPORATION NOTES TO FINANCIAL STATEMENTS TABLE OF CONTENTS DESCRIPTION PAGE NO. Independent Auditors' Report 1 Balance Sheets 2 Statements of Income 3 Statements of Retained Earnings 4 Statements of Cash Flows 5 Notes to Financial Statements 6 - 7 INDEPENDENT AUDITORS' REPORT To the Shareholder of Entergy Richmond Power Corporation We have audited the accompanying balance sheets of Entergy Richmond Power Corporation as of December 31, 1993 and 1992, and the related statements of income, retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the Company at December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. As discussed in Note 1 an equity investee of the Company is currently involved in negotiations to amend a power sales contract under which it may be in default. It is uncertain what impact any potential amendment will have on the Company's ability to recover its investment. /s/ Deloitte & Touche LLP DELOITTE & TOUCHE LLP December 6, 1994 ENTERGY RICHMOND POWER CORPORATION BALANCE SHEETS AT DECEMBER 31, 1993 AND 1992 ASSETS 1993 1992 INVESTMENTS: Investment in Richmond Power Enterprises LP $11,755,000 $12,500,000 ----------- ----------- CURRENT ASSETS: Cash 1,105 1,000,000 Temporary cash investments 1,137,935 - ----------- ----------- Total cash and cash equivalents 1,139,040 1,000,000 Accounts receivable: Associated companies 95,000 - Other 96 - Prepaid taxes 666,785 - Interest receivable 3,002 - ----------- ----------- Total 1,903,923 1,000,000 ----------- ----------- DEFERRED DEBITS Organizational costs 522,990 676,925 ----------- ----------- Total $14,181,913 $14,176,925 =========== =========== LIABILITIES AND CAPITALIZATION CAPITALIZATION : Common stock, no par value 13,500 shares issued and outstanding $13,500,000 $13,500,000 Retained earnings 236,863 - ----------- ----------- Total 13,736,863 13,500,000 ----------- ----------- CURRENT LIABILITIES: Accounts payable: Associated companies 86,281 - Other 55,235 676,925 ----------- ----------- Total 141,516 676,925 ----------- ----------- DEFERRED CREDITS: Accumulated deferred income taxes 303,534 - ----------- ----------- Total $14,181,913 $14,176,925 =========== =========== See Notes to Financial Statements ENTERGY RICHMOND POWER CORPORATION STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 REVENUES: Equity in Earnings of Richmond Power Enterprises, LP $1,010,000 $ - Interest income 27,732 - ----------- ----------- Total 1,037,732 - ----------- ----------- EXPENSES: Amortization 635,752 - Outside services 14,087 - Taxes other than income 198 - Administrative and general 30 - ----------- ----------- Total 650,067 - ----------- ----------- INCOME BEFORE INCOME TAXES 387,665 - ----------- ----------- Income taxes- Federal (122,152) - Income taxes- state (30,580) - Deferred income taxes- federal 249,694 - Deferred income taxes- state 53,840 - ----------- ----------- Total 150,802 - ----------- ----------- NET INCOME $236,863 $ - =========== =========== See Notes to Financial Statements ENTERGY RICHMOND POWER CORPORATION STATEMENTS OF RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 Retained Earnings, January 1 - $ - Add: Net Income $236,863 - ----------- ----------- Retained Earnings, December 31 $236,863 $ - =========== =========== See Notes to Financial Statements ENTERGY RICHMOND POWER CORPORATION STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992 1993 1992 OPERATING ACTIVITIES: Net Income $236,863 $ - Noncash items included in net income: Equity in earnings of unconsolidated subsidiary (1,010,000) - Amortization 635,752 - Deferred income taxes 303,534 - Changes in working capital: Receivables (95,096) - Accounts payable (535,409) $676,925 Prepaid taxes (666,785) - Other current assets (3,002) - Net cash flow provided by operating ----------- ----------- activities (1,134,143) 676,925 ----------- ----------- INVESTING ACTIVITIES: Investment returned 1,250,000 - Investment in nonregulated properties - (12,500,000) Organizational costs 23,183 (676,925) ----------- ----------- Net cash flow provided (used) by investing activities 1,273,183 (13,176,925) ----------- ----------- FINANCING ACTIVITIES: Issuance of common stock - 13,500,000 ----------- ----------- Net increase in cash and cash equivalents 139,040 1,000,000 Cash and cash equivalents at beginning of year 1,000,000 - ----------- ----------- Cash and cash equivalents at end of year $1,139,040 $1,000,000 =========== ========== Supplemental Disclosure of Cash Flow Information Cash paid during the period for: Income taxes $514,053 - See Notes to Financial Statements ENTERGY RICHMOND POWER CORPORATION NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Entergy Richmond Power Corporation (the Company) is an indirect wholly owned subsidiary of Entergy Corporation (Entergy) chartered in 1992. The Company, an Exempt Wholesale Generator (EWG), owns a 50% interest in Richmond Power Enterprises LP (RPELP), which owns a 250-MW gas-fired, combined-cycle independent power plant in Richmond, Virginia. RPELP is jointly- owned and operated by the Enron Power Corporation, a developer of independent power projects. RPELP has a 25-year contract to sell electricity to Virginia Electric and Power Company. The Company's investment in RPELP is recorded on the equity basis. Entergy Corporation has been notified by Enron that the facility did not meet the FERC efficiency test to maintain qualifying facility status as required by the contract with VEPCO. Enron has indicated that the facility has met the test in 1994. The failure to meet the test prior to 1994 could result in a potential default under the VEPCO contract. However, the Company, Enron, and VEPCO are currently involved in negotiations to amend the contract to resolve this issue. Summarized financial information of RPELP during the periods of the Company's investment is as follows: 1993 1992 (In Thousands) Net plant $124,212 $127,670 Current and other assets $ 18,873 $ 16,864 Long term debt $127,901 $133,718 Current and other liabilities $ 13,902 $ 8,938 Revenues $ 36,823 - Net Income $ 1,945 - Depreciation and Amortization Depreciation of RPELP's power plant is computed on the straight- line method over the estimated useful life. Excess of purchase price over book value of the Company's investment in RPELP ($11,114,000 at December 31, 1993) is being amortized over a 23 year period. Cash and Cash Equivalents All unrestricted highly liquid debt instruments purchased with an original maturity of three months or less are considered to be cash equivalents. NOTE 2. INCOME TAXES Effective January 1, 1993, the Company adopted Statement of Financial Accounting Standard (SFAS) 109. This new standard requires that deferred income taxes be recorded for all temporary differences and carry forwards, and that deferred tax balances be based on enacted tax laws at tax rates that are expected to be in effect when the temporary differences reverse. Since the Company was formed in December 1992, there is no cumulative effect of the adoption of SFAS 109. The Company joins its parent and the other Entergy subsidiaries in filing a consolidated Federal income tax return. Income taxes (or benefits) are allocated to Entergy Richmond Power in proportion to its contribution to consolidated taxable income. There are temporary differences in reporting certain items for financial statement and Federal income tax purposes. The principal differences relate to the period of depreciation of the cost of RPELP's power plant and the accounting for organization expenses. Deferred income taxes are provided for these temporary differences. NOTE 3. COMMON STOCK The Company is authorized, by its Charter, to issue 25,000 shares of its common stock. During 1992, the Company sold 13,500 shares of its common stock to Entergy Power Development Corporation at $ 1,000 per share. The proceeds of this sale were used primarily to fund the Company's investment in RPELP. Entergy Transener S.A. Financial Statements for the Year Ended December 31, 1993 and Independent Auditors' Report ENTERGY TRANSENER S.A. FINANCIAL STATEMENTS TABLE OF CONTENTS DESCRIPTION PAGE NO. Independent Auditors' Report 1 Balance Sheet 2 Income Statement 3 Statement of Retained Earnings 3 Statement of Cash Flows 4 Notes to Financial Statements 5 - 6 INDEPENDENT AUDITORS' REPORT To the Shareholder of Entergy Transener S.A. We have audited the accompanying balance sheet of Entergy Transener S.A. as of December 31, 1993, and the related statements of income, retained earnings, and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of the Company at December 31, 1993, and the results of its operations and its cash flows for the year then ended in conformity with generally accepted accounting principles. /s/ Deloitte & Touche LLP DELOITTE & TOUCHE LLP December 6, 1994 ENTERGY TRANSENER S.A. BALANCE SHEET AT DECEMBER 31, 1993 ASSETS INVESTMENTS: Investment in associated company $18,513,581 CURRENT ASSETS: Cash 50,028 Accounts receivable - associated companies 1,939,579 ----------- Total 1,989,607 ----------- TOTAL $20,503,188 =========== LIABILITIES AND CAPITALIZATION CAPITALIZATION : Common stock, $1.00 par value, 11,999 shares issued and outstanding (Note 4) $ 11,999 Additional paid-in capital 20,488,001 Retained earnings 3,188 ----------- Total 20,503,188 ----------- TOTAL $20,503,188 =========== See Notes to Financial Statements ENTERGY TRANSENER S.A. STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1993 REVENUES: Interest income $ 28 Miscellaneous income 3,160 ------ Total 3,188 ------ EXPENSES: Administrative and general - ------ NET INCOME $3,188 ====== See Notes to Financial Statements ENTERGY TRANSENER S.A. STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 1993 Retained Earnings, January 1 $ - Add: Net Income 3,188 ------ Retained Earnings, December 31 $3,188 ====== See Notes to Financial Statements ENTERGY TRANSENER S.A. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 1993 OPERATING ACTIVITIES: Net Income $ 3,188 Changes in working capital: Receivables (1,939,579) ------------ Net cash used by operating activities (1,936,391) ------------ INVESTING ACTIVITIES: Investment in associated company (18,513,581) ------------ Net cash used by investing activities (18,513,581) ------------ INVESTING ACTIVITIES: Issuance of common stock 20,500,000 ------------ Net change in cash and cash equivalents 50,028 Cash and cash equivalents at beginning of year - ------------ Cash and cash equivalents at end of year $ 50,028 ============ See Notes to Financial Statements ENTERGY TRANSENER S.A. NOTES TO FINANCIAL STATEMENTS NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Entergy Transener S.A. (Entergy Transener) is a wholly owned subsidiary of Entergy Corporation chartered in July 1993. Entergy Transener owns 15% of Citelec S.A. (an investment company) with other nonaffiliated companies. Citelec S.A. acquired a 65% interest in a transmission system (Transener S.A.) providing service in the Republic of Argentina. Transener S.A. owns and operates a major system of high voltage transmission lines and consists of over 6,800 kilometers (4,250 miles) of 500 kV and 560 kilometers (356 miles) of 220 kV transmission lines. Transener S.A. must allow access to system users whenever there is available capacity in its facilities. The system serves most of the Republic of Argentina. Entergy Transener's investment in Citelec S.A. is carried at cost. Regulation Entergy Transener is a "Foreign Utility Company" as defined in The Energy Policy Act of 1992 section 33(a)(3). Entergy Transener, as a subsidiary of Entergy Corporation, which is a registered public utility holding company under the Public Utility Holding Company Act of 1935, as amended (PUHCA), is subject to the broad regulatory provisions of PUHCA, which requires, among other things, Securities and Exchange Commission (SEC) approval for certain transactions, except as exempted under the provisions of the Energy Policy Act of 1992 cited above. NOTE 2. TRANSACTIONS WITH AFFILIATES Entergy Corporation and its subsidiaries incurred approximately $1,832,000 of organization and development costs during 1993 related to the formation of Entergy Transener. NOTE 3. INCOME TAXES Entergy Transener accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes"("FAS 109"). This standard requires that deferred income taxes be recorded for all differences between the tax and financial statement bases of assets and liabilities and for certain carry forward items. Deferred tax balances are based on enacted tax laws at tax rates that are expected to be in effect when the temporary differences reverse. Entergy Transener files its income tax returns in Argentina. During 1993 there were no significant temporary differences between the tax basis and financial statement basis of its assets and liabilities. In 1993, Entergy Transener's effective income tax rate was 0%, compared to the statutory Argentina income tax rate of 30%. The primary reason for the difference between the effective income tax rate and the statutory income tax rate is that Entergy Transener's reported items of income and expense are not taxable or deductible for Argentina income tax purposes. NOTE 4. COMMON STOCK Entergy Transener is authorized, by it's Charter, to issue 2,212,000 shares of its common stock. During 1993, Entergy Transener sold 11,999 shares of its common stock ($1.00 par value) to Entergy Corporation for $20,500,000. The proceeds of this sale were used primarily to fund Entergy Transener's participation in a consortium with other nonaffiliated companies to acquire an interest in Transener S.A. NOTE 5. SUBSEQUENT EVENT Certain debt issues of Citelec S.A. are callable in March and June of 1995. In the event that Citelec S.A. is unable to refinance the debt, Entergy Transener may be required to invest up to $10.5 million in Citelec S.A. for the purpose of refunding the debt. SIGNATURE Each undersigned system company has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935. The signature of each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries. ENTERGY RICHMOND POWER CORPORATION ENTERGY POWER DEVELOPMENT CORPORATION By: /s/ Terry L. Ogletree Terry L. Ogletree President and Chief Operation Officer ENTERGY TRANSENER S. A. By: /s/ Terry L. Ogletree Terry L. Ogletree President Dated: April 19, 1995 EX-27 2 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 YEAR YEAR DEC-31-1993 DEC-31-1992 DEC-31-1993 DEC-31-1992 PER-BOOK PER-BOOK 0 0 11,755,000 12,500,000 13,637,783 12,500,000 539,448 712,128 0 0 25,932,231 25,712,128 25,000,000 25,000,000 0 0 465,912 0 25,465,912 25,000,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 466,319 712,128 25,932,231 25,712,128 1,417,444 0 296,628 0 654,904 0 951,532 0 465,912 0 0 0 0 0 0 0 465,912 0 0 0 465,912 0 0 0 0 0 (737,049) 712,128 0 0 0 0
EX-27 3 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
OPUR1 YEAR YEAR DEC-31-1993 DEC-31-1992 DEC-31-1993 DEC-31-1992 PER-BOOK PER-BOOK 0 0 11,755,000 12,500,000 1,903,923 1,000,000 522,990 676,925 0 0 14,181,913 14,176,925 13,500,000 13,500,000 0 0 236,863 0 13,736,863 13,500,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 445,050 676,925 14,181,913 14,176,925 1,037,732 0 150,802 0 650,067 0 800,867 0 236,863 0 0 0 0 0 0 0 236,863 0 0 0 236,863 0 0 0 0 0 (1,134,193) 676,925 0 0 0 0
EX-27 4
OPUR1 YEAR DEC-31-1993 DEC-31-1993 PER-BOOK 0 18,513,581 1,989,607 0 0 20,503,188 11,999 20,488,001 3,188 20,503,188 0 0 0 0 0 0 0 0 0 0 0 20,503,188 3,188 0 0 0 3,188 0 0 0 3,188 0 3,188 0 0 (1,936,391) 0 0
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