35-CERT 1 a11205.htm

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                              .
    ________________                              .
                                                  .
                                                  .
    (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 first quarter ended March 31, 2005 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, dated December 17, 1971 in File No. 70-5015 and April 28, 1978 in File No. 70-5889.

Expenditures for SFI's fuel program for 2005 during the 1st quarter are indicated below:

 

Net Expenditures
(In Thousands)
 

1st Quarter

Year-To-Date

2005 Fuel Supply Program:

    

1. Gas and Oil Development
    and Production

$ 0 

$ 0 

2. Nuclear Fuel Procurement

(6,010)

(6,010)

3. Fuel Oil Program

    533 

    533 
     

TOTAL EXPENDITURES

 (5,477)

 (5,477)
     

Less funds derived through

    

 Amortization & depreciation

    

 Charges

    

Amortization of Gas & Oil

    

 Development & Production Costs

0 

 0  

Depreciation & Other

Amortization

       0 

      0 
     

TOTAL depreciation & amortization

       0 

      0 

Net Expenditures

(5,477)

(5,477)
     

(Increase) decrease in:

    

  Outside financing

    

  System Money Pool borrowings

 (56,202)

 (56,202)
     

TOTAL (increase)decrease

    

 in borrowings

 (56,202)

 (56,202)
     

Increase (decrease) in working

    

 Capital

$ 61,679 

$ 61,679 
     

1. Gas and Oil Development and

    

    Production

    
 

Net Expenditures
(In Thousands)
 

1st Quarter

Year-To-Date

Gas and Oil Development

    

 and Production

$     0 

$     0 
     

Effective July 1, 1996, SFI sold its interest in the properties associated with its Gas and Oil Development and Production Program (the program).

As of September 30, 2003, there are no remaining proceeds 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

Year-To-Date

Sales to non-System parties:

    

Natural gas

$ 0     

$ 0     

Condensate

0     

0     

Crude oil

  0     

  0     
     

TOTAL

0     

0     

Miscellaneous income (including

    

sale of assets)

  0     

  0     

TOTAL

0     

0     
     

General and administrative

    

Expense

0     

0     

Operating expense

0     

0     

Interest expense

0     

0     

Amortization adjustment

  0     

  0     
     

Net proceeds

$ 0     

$ 0     
     
     

2. Nuclear Fuel Procurement

    

 
 

Net Expenditures
(In Thousands)
 

1st Quarter

Year-To-Date

Nuclear Fuel Procurement

$(6,010)

$(6,010)
     
     
 

Net Expenditures
(In Thousands)
 

1st Quarter

Year-To-Date

Activities during the period:

    

  Expenditures for nuclear

    

   Materials and processing

    

   Services

$33,966   

$33,966   

  General and administrative

    

   Expense

146   

146   

  Interest expense

     169   

     169   
     

TOTAL

  34,281   

  34,281   

Sales of nuclear materials and

    

  Processing services to

  System companies

  40,291   

  40,291   
     

Net effect on inventory

$ (6,010)  

$ (6,010)  

 

 

3. Fuel Oil Program

    

 
 

Net Expenditures
(In Thousands)
 

1st Quarter

Year-To-Date

Fuel Oil Inventory

$ 533

$ 533
     

a) Fuel Oil Inventory:

    
 

Barrels

Book Value

Inventory as of:

(In Thousands)
     
 March 31, 2005 2,065 61,814
 December 31, 2004 1,936 61,281
 September 30, 2004 2,015 61,002
 June 30, 2004 2,177 65,154
 March 31, 2004 1,437 41,546
     
     
 

During 1st Quarter

  
     
 

Barrels

Value

Sales price per barrel

    

  to System companies

    

  Excluding period cost:

    
    #2 Fuel Oil 13,072      45.69
    #6 Fuel Oil 301,322      29.56

 

4. Other Items:

a) As of March 31, 2005, 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

56,202    

Banks

      0    
   

TOTAL

$90,222    
   

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 2005, SFI was billed by Entergy Services for the following amounts:

 
 


January


February


March

Total
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

$ 7,706  

$ 8,222  

$  3,110  

$ 19,038

 Other direct cost

6,145  

3,734  

(1,774) 

   8,105

Indirect Cost

  2,113  

  2,050  

     533  

   4,696

      TOTAL

 15,964  

 14,006  

   1,869  

  31,839
         

Cost of services charged

to Service Requests not

        

Related to transfer of

       

SFI personnel:

 62,096  

 40,656  

 143,128  

 245,880

       

Total cost of services

        

performed by Entergy

        

Services

$78,060  

$54,662  

$144,997  

$277,719
         

Amounts billed to

        

Operating Companies for

        

The Fuel Oil Program*

$38,045  

$27,082  

$ 93,813  

$158,940
         

Charged to Nuclear Fuel

       

Procurement

 40,015  

 27,580  

  51,184  

 118,779
         

TOTAL

$78,060  

$54,662  

$144,997  

$277,719
         

* 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 2005, such Fuel Oil Program period costs were allocated 9.77% to ENTERGY ARKANSAS, INC., 50.43% to ENTERGY LOUISIANA, INC., 28.12% to ENTERGY MISSISSIPPI, INC., and 11.68% 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.

 

IN WITNESS WHEREOF, SFI has caused this certificate to be executed as of the 29th of April 2005.

 

ENTERGY ARKANSAS, INC.
ENTERGY LOUISIANA, INC.
ENTERGY MISSISSIPPI, INC.
ENTERGY NEW ORLEANS, INC.
SYSTEM ENERGY RESOURCES, INC.

BY: /s/ Nathan E. Langston
Nathan E. Langston
Senior Vice President and
Chief Accounting Officer

 
 

SYSTEM FUELS, INC.
 
 

BY: /s/ Steven C. McNeal
 Steven C. McNeal
Vice President and Treasurer