-----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, HchkCk6WgTm8bsssH7WffmwAZxwBjmE8AX7twv+XXZcizrNqhunZcGMZ0t7fa4Gz vOlXjp3KYJfb3mBZkjKkWA== 0000096035-98-000001.txt : 19980803 0000096035-98-000001.hdr.sgml : 19980803 ACCESSION NUMBER: 0000096035-98-000001 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980731 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: 98675123 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: 98675124 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: 98675125 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 June, 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 2nd quarter are indicated below: Net Expenditures (In Thousands) 2nd Quarter Year-To-Date 1998 Fuel Supply Program: 1. Gas and Oil Development and Production $ 3 $ 5,610 2. Nuclear Fuel Procurement (10,318) (9,647) 3. Fuel Oil Program 4,429 (5,003) ------- --------- TOTAL EXPENDITURES (5,886) (9,040) ------- --------- Less funds derived through amortization & depreciation Charges Amortization of Gas & Oil Development & Production Costs (263) (263) Depreciation & Other Amortization ( 85) (176) ------- --------- TOTAL depreciation & amortization (348) (439) ------- --------- Net Expenditures (6,234) (9,479) (Increase) decrease in: Outside financing - System Money Pool borrowings 6,254 (608) ------- --------- TOTAL (increase)decrease in borrowings 6,254 (608) ------- --------- Increase (decrease) in working Capital $ (20) $ 10,087 ======= ========= 1. Gas and Oil Development and Production Net Expenditures (In Thousands) 2nd Quarter Year-To-Date Gas and Oil Development and Production $ 3 $ 5,610 ======= ========== 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 June 30, 1998, accumulated net proceeds of approximately $608,000 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) 2nd Quarter Year-To-Date Sales to non-System parties: Natural gas $ 273 $ 273 Condensate - Crude oil - ------ -------- TOTAL 273 273 Miscellaneous income (including - - sale of assets) ------ -------- TOTAL 273 273 General and administrative expense - - Operating expense 3 10 Interest expense - - Amortization adjustment 7 - ------ -------- Net proceeds $ 263 $ 263 ====== ======== 2. Nuclear Fuel Procurement (See Item III) Net Expenditures (In Thousands) 2nd Quarter Year-To-Date Nuclear Fuel Procurement $ (10,318) $ (9,647) ========= ======== Net Expenditures (In Thousands) 2nd Quarter Year-To-Date Activities during the period: Expenditures for nuclear materials and processing services $ 40,563 $40,925 General and administrative expense 97 232 Interest expense 712 1,494 -------- ------- TOTAL 41,372 42,651 -------- ------- Sales of nuclear materials and processing services to System companies 51,690 52,298 -------- ------- Net effect on inventory $(10,318) $(9,647) ======== ======= 3. Fuel Oil Program (See Item II) Net Expenditures (In Thousands) 2nd Quarter Year-To-Date Fuel Oil Inventory $ 4,429 $ (5,003) ======= ======== a) Fuel Oil Inventory: Barrels Book Value Inventory as of: (In Thousands) June 30, 1998 2,406 36,076 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 During 2nd Quarter (In Thousands) Barrels Value Sales price per barrel to System companies excluding period cost: #2 Fuel Oil 56 23.22 #6 Fuel Oil 2,462 11.67 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 second quarter, SFI purchased 1,330,229 barrels of Bunker Grade oil from Marathon, and sold this product to a third party for approximately $13.8 million. 4. Other Items: a) As of June 30,1998, 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 56,463 Banks 0 ------- TOTAL $90,483 ======= 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 2nd quarter of 1998, SFI was billed by Entergy Services for the following amounts: Total April May June 2nd 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 $ 3,124 $ 7,348 $ 5,326 $ 15,798 Other direct cost 885 1,758 1,435 4,078 Indirect Cost 459 1,360 1,002 2,821 --------------------------------------- TOTAL 4,468 10,466 7,763 22,697 --------------------------------------- Cost of services charged to Service Requests not related to transfer of SFI personnel: 92,161 82,260 7,596 182,017 --------------------------------------- Total cost of services performed by Entergy Services $ 96,629 $ 92,726 $ 15,359 $204,714 ======================================= Amounts billed to Operating Companies for the Fuel Oil Program* $ 49,485 $ 45,518 $ 14,129 $109,132 Charged to Nuclear Fuel Procurement 47,144 47,208 1,230 95,582 --------------------------------------- TOTAL $ 96,629 $ 92,726 $ 15,359 $204,714 ======================================= 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 2nd 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 31th of July 1998. ENTERGY ARKANSAS, INC. ENTERGY LOUISIANA, INC. ENTERGY MISSISSIPPI, INC. ENTERGY NEW ORLEANS, INC. SYSTEM ENERGY RESOURCES, INC. ENTERGY CORPORATION BY: /s/ Louis E. Buck Louis E. Buck Vice President - Chief Accounting Officer and Assistant Secretary SYSTEM FUELS, INC. BY: /s/ Steven C. McNeal Steven C. McNeal Assistant Treasurer -----END PRIVACY-ENHANCED MESSAGE-----