-----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, P1PVwGBadII1OHDmEOPFI74hZoObSsBEZVwTG2aUONH5nIc2PodUs+Y/z0jlBPt+ CYQnIUyO2Gqj19y945zuUQ== 0000065984-96-000069.txt : 19960501 0000065984-96-000069.hdr.sgml : 19960501 ACCESSION NUMBER: 0000065984-96-000069 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960430 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARKANSAS POWER & LIGHT CO 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: 1935 Act SEC FILE NUMBER: 070-05015 FILM NUMBER: 96554043 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 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: 1935 Act SEC FILE NUMBER: 070-05889 FILM NUMBER: 96554044 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: 1935 Act SEC FILE NUMBER: 070-07574 FILM NUMBER: 96554045 BUSINESS ADDRESS: STREET 1: NORO PLAZA STREET 2: 666 POYDRAS CITY: NEW ORLEANS STATE: LA ZIP: 70130 BUSINESS PHONE: 0000000000 MAIL ADDRESS: STREET 1: PO BOX 61000 CITY: NEW ORLEANS STATE: LA ZIP: 70161 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 March 31, 1996, 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 - 1996 Fuel Supply Programs Expenditures for SFI's fuel program for 1996 during the 1st quarter and year to date are indicated below: Net Expenditures During Year 1st Qtr To Date (In Thousands) 1996 Fuel Supply Program: 1. Gas and Oil Development and Production .........$ 412 $ 412 2. Nuclear Fuel Procurement ....................... 18,400 18,400 3. Fuel Oil Program ............................... (13,497) (13,497) --------- -------- Total Expenditures ................................... 5,315 5,315 --------- -------- Less funds derived through amortization and depreciation charges: Amortization of Gas and Oil Development and Production Costs ................................. (227) (227) Depreciation and other amortization ................ (130) (130) --------- ------- Total depreciation and amortization ................... (357) (357) --------- ------- Net Expenditures ...................................... 4,958 4,958 (Increase) decrease in: Outside financing .................................. - - System Money Pool borrowings ....................... (22,122) (22,122) --------- ------- Total (increase) decrease in borrowings ............... (22,122) (22,122) --------- ------- Increase (decrease) in working capital $ 17,164 $ 17,164 ========= ======== 1. Gas and Oil Development and Production Net Expenditures During Year 1st Qtr To Date (In Thousands) Gas and Oil Development and Production ...... $ 412 $ 412 ====== ======== a) During the quarter, there was no drilling activity. b) During the 1st quarter of 1996, SFI produced 131,965 MCFs of natural gas and 8,629 barrels of oil from it's Gas and Oil Development and Production Program (Program) which were sold to non-System parties. During the 1st quarter of 1996, all of SFI's natural gas production was sold to non-System parties. This condition is expected to continue indefinitely. As a result, SFI's expenditures in the Program are being limited to amounts required to protect its existing investment in the properties. Investments in new leases are not being made at this time. During this quarter, SFI recorded net excess amortization of $227,273, which results in accumulated excess amortization of $227,273 at the end of this period. 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 1st Qtr To Date (In Thousands) Sales to non-System parties: Natural gas .................................. $ 798 $ 798 Condensate ................................... 13 13 Crude oil .................................... 94 94 ------- -------- Total ......................................... 905 905 Miscellaneous income from non-System parties.. 57 57 ------- -------- Total ......................................... 962 962 General and administrative expense ............ (123) (123) Operating expense ............................. (252) (252) Interest expense .............................. 14 14 Amortization adjustment ....................... (374) (374) ------- -------- Net proceeds .................................. $ 227 $ 227 ======= ======== 2. Nuclear Fuel Procurement (See Item III) Net Expenditures During Year 1st Qtr To Date (In Thousands) Nuclear Fuel Procurement ........................... $ 18,400 $ 18,400 ========= ======== Net Expenditures During Year 1st Qtr To Date (In Thousands) Activities during the period: Expenditures for nuclear materials and processing services ..................................... $ 35,528 $ 35,528 General and administrative expense .............. 27 27 Interest expense ................................ 1,315 1,315 --------- -------- Total ........................................... 36,870 36,870 Sales of nuclear materials and processing --------- -------- services to System companies ................. 18,469 18,469 --------- -------- Net effect on inventory ........................... $ 18,401 $ 18,401 ========= ======== During the 1st quarter of 1996, SFI's purchases totaled $23.4 million for nuclear materials and services. Also, no new contracts were entered into during this period. During this reporting period, SFI sold, to Arkansas Power & Light Company, nuclear materials and services totaling $18.5 million for use at their ANO 1 nuclear unit. 3. Fuel Oil Program (See Item II) Net Expenditures During Year 1st Qtr To Date (In Thousands) Fuel Oil Inventory ................................. $(13,497) $(13,497) ======== ======== a) Fuel Oil Inventory: Book Inventory as of: Barrels Value (In Thousands) March 31, 1996................................ 949 $ 19,764 December 31, 1995 ............................ 1,747 $ 27,950 September 30, 1995 ........................... 1,729 $ 27,518 June 30, 1995 ................................ 1,755 $ 28,459 March 31, 1995 ............................... 1,757 $ 28,359 During 1st Qtr. Barrels Cost Sales price per barrel to System companies excluding period cost: #2 Fuel Oil ............................... 94,483 $ 26.01 #6 Fuel Oil ............................... 1,350,645 $ 12.07 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 this quarter, SFI and Marathon reached a negotiated settlement to the dispute, and Marathon resumed delivery of the high sulfur product portion of the contract. This began on March 1, 1996 and will continue through February 28, 1999 to satisfy the final three years of the agreement. 4. Other Items: a) As of March 31, 1996, 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 ............................ 24,954 Banks ........................................ 30,000 -------- Total ........................................ $ 88,974 ======== 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 1996, SFI was billed by Entergy Services for the following amounts: Total During Jan Feb Mar 1st 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 $ 12,891 $ 15,058 $ 27,186 $ 55,135 Other direct cost ..... 1,835 3,694 988 6,517 Indirect cost ............ 1,570 830 1,638 4,038 -------- -------- -------- -------- Total .............. 16,296 19,582 29,812 65,690 -------- -------- -------- -------- Cost of services charged to Service Requests not related to transfer of SFI personnel: 134,725 115,854 99,062 349,641 -------- -------- -------- -------- Total cost of services performed by Entergy Services .................... $151,021 $135,436 $ 128,874 $415,331 ======== ======== ========= ======== Amounts billed to Operating Companies for the Fuel Oil Program * ................... $102,094 $ 90,663 $ 79,465 $272,222 Deferred Cost and services .. 0 0 0 0 Charged to Nuclear Fuel Procurement ................. 9,152 8,240 6,483 23,875 Charged to Gas and Oil Development and Production .. 39,776 36,532 42,926 119,234 -------- -------- -------- -------- Total .................... $151,021 $135,436 $ 128,874 $415,331 ======== ======== ========= ======== * Charged to the Fuel Oil Program as a component of period costs. For the 1st quarter of 1996 Fuel Oil Program period costs were allocated 8% to Arkansas Power & Light Company, 56% to Louisiana Power & Light Company, 26% to Mississippi Power & Light Company, and 10% 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 During the quarter, SFI had no borrowings or repayments under this financing agreement. Commitment fees of $18,958 were incurred on the unused portion of the agreement. As of March 31, 1996, the sum of the Aggregate Borrowing Base of Eligible Fuel Oil Inventory and Receivables was $16,211,781, and there were no outstanding borrowings under this agreement. III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement (Yasuda) During the quarter, SFI borrowed $0 under this financing agreement. Commitment fees of $2,025 were incurred on the unused portion of the agreement. The average outstanding principal balance, was $30,000,000 and accrued interest cost was $652,214 for the quarter. 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 27, 1996. A copy of the amended credit agreement was previously filed with the SEC. As of March 31, 1996, the book value of the nuclear fuel was $65,994,000 and there was $30,000,000 of outstanding borrowings under the Yasuda financing agreement. IV. File No 70-8331 Entergy Corporation Revolving Credit Agreement (Entergy) Pursuant to the Order issued on March 16, 1994, (Release 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 expires on December 31, 1996. As of the period ended March 31, 1996, SFI had borrowed no funds under this agreement. IN WITNESS WHEREOF, SFI has caused this certificate to be executed as of the 30th of April, 1996. ARKANSAS POWER & LIGHT COMPANY LOUISIANA POWER & LIGHT COMPANY MISSISSIPPI POWER & LIGHT COMPANY NEW ORLEANS PUBLIC SERVICE 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-----