-----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, A1JGg1YgSoCeWZ1Trl/hs8L30kwvCIdyEGJRoRKIjlHfWS3nLzh1ofP9kaczslMN gFkNMzRorev6/b5zkrltlA== 0000044570-96-000003.txt : 19961101 0000044570-96-000003.hdr.sgml : 19961101 ACCESSION NUMBER: 0000044570-96-000003 CONFORMED SUBMISSION TYPE: 35-CERT PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19961031 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: 1935 Act SEC FILE NUMBER: 070-05015 FILM NUMBER: 96651248 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 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: 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: 96651249 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: 96651250 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 September 30, 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 3rd quarter and year to date are indicated below: Net Expenditures During Year 3rd Qtr To Date (In Thousands) 1996 Fuel Supply Program: 1. Gas and Oil Development and Production $ - $ 494 2. Nuclear Fuel Procurement ............. (7,879) 12,112 3. Fuel Oil Program ..................... (137) (7,188) ------ ------ Total Expenditures ......................... (8,016) 5,418 ------ ------ Less funds derived through amortization and depreciation charges: Amortization of Gas and Oil Development and Production Costs ....................... (1,659) (3,250) Depreciation and other amortization ...... (113) (366) ------ ------ Total depreciation and amortization ......... (1,772) (3,616) ------ ------ Net Expenditures ............................ (9,788) 1,802 (Increase) decrease in: Outside financing ........................ - 30,000 System Money Pool borrowings ............. 15,641 (30,213) ------ ------- Total (increase) decrease in borrowings ..... 15,641 (213) ------ ------- Increase (decrease) in working capital $ (5,853) $ (1,589) ====== ======= 1. Gas and Oil Development and Production Net Expenditures During Year 3rd Qtr To Date (In Thousands) Gas and Oil Development and Production ..... $ - $ 494 ======= ======= On September 6, 1996, effective July 1, 1996, SFI sold its interest in the properties associated with its Gas and Oil Development and Production Program, and recoginized a net gain, after tax, of approximately $1.3 million. During this quarter, SFI recovered its expenditures and recorded $1.7 million to excess proceeds. This activity increased accumulated excess proceeds to approximately $3.7 million at September 30, 1996. SFI and the purchaser of the oil & gas properties have 90 days in which to finalize all their transactions/adjustments. The accumulated net proceeds are deferred on SFI's books for later distribution to its parent companies. Calculation of net proceeds from sales to non-System parties from the Program, including net proceeds from the sale of the assets, is: Net Expenditures During Year 3rd Qtr To Date (In Thousands) Sales to non-System parties: Natural gas ........................... $ 230 $ 1,737 Condensate ............................ (6) 33 Crude oil ............................. 68 395 ----- ------ Total .................................. 292 2,165 Miscellaneous income (including sale of assets)......................... 7,134 7,253 ----- ------ Total .................................. 7,426 9,418 General and administrative expense ..... (5,963) (6,130) Operating expense ...................... 12 (512) Interest expense ....................... 34 89 Amortization adjustment ................ 150 385 ----- ----- Net proceeds ........................... $ 1,659 $ 3,250 ===== ===== 2. Nuclear Fuel Procurement (See Item III) Net Expenditures During Year 3rd Qtr To Date (In Thousands) Nuclear Fuel Procurement ................ $ (7,879) $ 12,112 ====== ====== Net Expenditures During Year 3rd Qtr To Date (In Thousands) Activities during the period: Expenditures for nuclear materials and processing services ............................. $ 23,528 $ 59,579 General and administrative expense ....... 23 72 Interest expense ......................... 1,106 3,467 ------ ------ Total .................................... 24,657 63,118 Sales of nuclear materials and processing ------ ------ services to System companies .......... 32,536 51,005 ------ ------ Net effect on inventory .................... $ (7,879) $12,112 ====== ====== During the 3rd quarter of 1996, SFI's purchases totaled $23.5 million for nuclear materials and services. Several new contracts were entered into, during this period, to provide uranium deliveries from 1998 to the year 2001. During this reporting period, SFI sold nuclear materials and services costing $32.5 million to System Energy Resources, Inc. for use in its Grand Gulf Nuclear Unit. 3. Fuel Oil Program (See Item II) Net Expenditures During Year 3rd Qtr To Date (In Thousands) Fuel Oil Inventory ....................... $ (137) $ (7,189) ====== ======= a) Fuel Oil Inventory: Book Inventory as of: Barrels Value (In Thousands) September 30, 1996.................. 1,008 $ 20,761 June 30, 1996 ...................... 1,038 $ 20,898 March 31, 1996 ..................... 949 $ 19,764 December 31, 1995 .................. 1,747 $ 27,950 September 30, 1995 ................. 1,729 $ 27,518 During 3rd Qtr. Barrels Cost Sales price per barrel to System companies excluding period cost: #2 Fuel Oil ..................... 23,460 $ 24.82 #6 Fuel Oil ..................... - $ - 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, 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. The product delivered is being sold to a third party. 4. Other Items: a) As of September 30, 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 ............................ 33,045 Banks ........................................ 0 ------- Total ........................................ $ 67,065 ======= 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 1996, SFI was billed by Entergy Services for the following amounts: Total During Jul Aug Sep 3rd 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.... $ 19,228 $ 28,911 $ 22,866 $ 71,005 Other direct cost ........ 1,805 2,518 2,248 6,571 Indirect cost ............... 1,415 775 8,733 10,923 ------ ------ ------ ------ Total ................. 22,448 32,204 33,847 88,499 ====== ====== ====== ====== Cost of services charged to Service Requests not related to transfer of SFI personnel: 146,119 130,441 78,996 355,556 ------- ------- ------- ------- Total cost of services performed by Entergy Services .................... $168,567 $162,645 $112,843 $444,055 ======= ======= ======= ======= Amounts billed to Operating Companies for the Fuel Oil Program * ................... $131,819 $111,262 $ 65,565 $308,646 Deferred Cost and services .. 0 0 0 0 Charged to Nuclear Fuel Procurement ................. 7,637 6,882 5,585 20,104 Charged to Gas and Oil Development and Production .. 29,111 44,501 41,693 115,305 ------- ------- ------- ------- Total ....................... $168,567 $162,645 $112,843 $444,055 ======= ======= ======= ======= * 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 ENTERGY ARKANSAS, INC., 56% to ENTERGY LOUISIANA, INC., 26% to ENTERGY MISSISSIPPI, INC., and 10% 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, 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 This financing agreement expired January 31, 1996. Commitment fees, incurred and paid for the month of January, 1996, were $6,458 on the unused portion of that agreement. As of September 30, 1996, there are no plans to renew this agreement. III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement (Yasuda) During the quarter, SFI did not borrow, nor repay anything, under this financing agreement. Commitment fees of $16,842 were incurred on the unused portion of the agreement. There were no outstanding principal balance, no accrued interest cost for the 3rd 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 September 30, 1996, the book value of the nuclear fuel was $59,706,000 and there was no amount outstanding 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 September 30, 1996, SFI had borrowed no funds under this agreement. IN WITNESS WHEREOF, SFI has caused this certificate to be executed as of the 31st of October, 1996. ENTERGY ARKANSAS, INC. ENTERGY LOUISIANA, INC. ENTERGY MISSISSIPPI, INC. ENTERGY NEW ORLEANS, INC. SYSTEM ENERGY RESOURCES, INC. ENTERGY CORPORATION BY: /s/William J. Regan, Jr. William J. Regan, Jr. Vice President and Treasurer SYSTEM FUELS, INC. BY: /s/William J. Regan, Jr. William J. Regan, Jr. Vice President, Treasurer and Assistant Secretary -----END PRIVACY-ENHANCED MESSAGE-----