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Previous: FREDERICKS OF HOLLYWOOD INC, 10-K405, 1995-11-27 |
Next: KEYSTONE HARTWELL GROWTH FUND, NSAR-B, 1995-11-27 |
File No. 70-8721
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________
Amendment No. 1
to the
Form U-1/A
___________________________________
APPLICATION-DECLARATION
under
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
___________________________________
Gulf States Utilities Company
350 Pine Street
Beaumont, TX 77701
(Name of company filing this statement and address
of principal executive offices)
___________________________________
Entergy Corporation
(Name of top registered holding company parent of each
applicant or declarant)
___________________________________
Frank Gallaher William J. Regan, Jr.
President Vice President and
Gulf States Utilities Treasurer
Company Entergy Services, Inc.
350 Pine Street 639 Loyola Avenue
Beaumont, TX 77701 New Orleans, LA 70113
(Names and addresses of agents for service)
___________________________________
The Commission is also requested to send copies of any
communications in connection with this matter to:
Laurence M. Hamric, Esq. Thomas J. Igoe, Jr.,
Ann G. Roy, Esq. Esq.
Entergy Services, Inc. Kevin Stacy, Esq.
639 Loyola Avenue Reid & Priest LLP
New Orleans, LA 70113 40 West 57th Street
New York, NY 10019
<PAGE>
Item 1. Section A. Overview. Section A paragraph 1 is
amended in its entirety to read as follows:
Gulf States Utilities Company, a Texas corporation
("Company"), which is a wholly-owned subsidiary of Entergy
Corporation ("Entergy"), a registered holding company
under the Public Utility Holding Company Act of 1935, as
amended ("Holding Company Act"), proposes, from time to
time through December 31, 2000, (A) to issue and sell one
or more new series of the Company's First Mortgage Bonds
("Bonds") and/or one or more new sub-series of the Medium
Term Note Series of its First Mortgage Bonds ("MTNs"), in
a combined aggregate principal amount of Bonds and MTNs
(together with Debentures, but excluding Entity
Subordinated Debentures and Collateral Bonds as referred
to below) not to exceed $900 million, and/or (B) to issue
and sell one or more series of the Company's debentures
("Debentures") in an aggregate principal amount (together
with Bonds and MTNs, but excluding Entity Subordinated
Debentures and Collateral Bonds as described below) not to
exceed $900 million, and/or (C) to issue and sell (i)
through one or more special purpose subsidiaries of the
Company, one or more series of preferred securities of
such subsidiary having a stated per share liquidation
preference ("Entity Interests") and/or (ii) one or more
new series of the Company's Preferred Stock, Cumulative,
$100 Par Value and/or Preferred Stock, Cumulative, without
par value ("Preferred") and/or (iii) one or more series of
the Company's Preference Stock, Cumulative, without par
value ("Preference"), in a combined aggregate stated
amount of Entity Interests, Preferred and Preference not
to exceed $400 million, and/or (D) to enter into
arrangements for the issuance and sale of not to exceed
$250 million aggregate principal amount of tax-exempt
bonds ("Tax-Exempt Bonds") in one or more series for the
financing of certain pollution control facilities,
including but not limited to sewage and/or solid waste
disposal facilities that have not heretofore been the
subject of such financing, or for the refinancing of
outstanding Tax-Exempt Bonds issued for that purpose,
including the possible issuance and pledge of one or more
new series of Bonds, MTNs and/or Debentures ("Collateral
Bonds"), and/or the purchasing of letters of credit and/or
insurance, in an aggregate principal or stated amount
(including such Collateral Bonds, letters of credit and/or
insurance) not to exceed $275 million as collateral
security for such Tax-Exempt Bonds (the financings
contemplated in (A) through (D) above being hereinafter
collectively referred to as "New Financing Plan"), and/or
(E) to acquire, from time to time, all or a portion of one
or more series of the Company's outstanding Tax-Exempt
bonds previously issued for the benefit of the Company
(collectively, the "New Acquisition Program"). Each of
these proposed transactions is discussed in detail below:
Item 6. Exhibits and Financial Statements.
(a) Exhibits:
F-1 Opinion of Laurence M. Hamric, General
Attorney-Corporate and Securities of Entergy
Services, Inc.
F-2 Withdrawn.
G Plan of Financing for the Company and
Financial Data Schedules.
_________________________
(b). Financial Statements
Financial Statements of the Company as of September
30, 1995 (reference is made to Exhibit G hereto).
Financial Statements of Entergy Corporation and
subsidiaries, consolidated, as of September 30, 1995.
Notes to financial statements of the Company and
Entergy Corporation and subsidiaries included in the
Annual Report on Form 10-K for the fiscal year ended
December 31, 1994 and the Quarterly Reports on Form 10-Q
for the quarterly periods ended March 31, June 30, and
September 30, 1995 (filed in File No. 1-2703 incorporated
herein by reference).
Except as reflected in the Financial Statements, no
material changes not in the ordinary course of business
have taken place since September 30, 1995.
Reference is made to Exhibit G hereto for a statement
of (i) the approximate amounts, before and after giving
effect to the proposed transactions, of available net
property additions of the Company available for the
issuance of First Mortgage Bonds and (ii) the proposed
accounting treatment of the transactions herein
contemplated.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned company has duly caused this
Application/Declaration to be signed on its behalf by the
undersigned thereunto duly authorized.
GULF STATES UTILITIES COMPANY
By: /s/ William J. Regan, Jr.
William J. Regan, Jr.
Vice President and Treasurer
Dated: November 27, 1995
Exhibit F-1
[Letterhead of Entergy Services, Inc.]
New Orleans, Louisiana
November 27, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Ladies and Gentlemen:
Gulf States Utilities Company, a Texas corporation
("Company"), which is a wholly-owned subsidiary of Entergy
Corporation ("Entergy"), a registered holding company under the
Public Utility Holding Company Act of 1935, as amended ("Holding
Company Act"), proposes, from time to time through December 31,
2000, (A) to issue and sell one or more new series of the
Company's First Mortgage Bonds ("Bonds") and/or one or more new
sub-series of the Medium Term Note Series of its First Mortgage
Bonds ("MTNs"), in a combined aggregate principal amount of Bonds
and MTNs (together with Debentures, but excluding Entity
Subordinated Debentures and Collateral Bonds as referred to
below) not to exceed $900 million, and/or (B) to issue and sell
one or more series of the Company's debentures ("Debentures") in
an aggregate principal amount (together with Bonds and MTNs, but
excluding Entity Subordinated Debentures and Collateral Bonds as
described below) not to exceed $900 million, and/or (C) to issue
and sell (i) through one or more special purpose subsidiaries of
the Company, one or more series of preferred securities of such
subsidiary having a stated per share liquidation preference
("Entity Interests") and/or (ii) one or more new series of the
Company's Preferred Stock, Cumulative, $100 Par Value and/or
Preferred Stock, Cumulative, without par value ("Preferred")
and/or (iii) one or more series of the Company's Preference
Stock, Cumulative, without par value ("Preference"), in a
combined aggregate stated amount of Entity Interests, Preferred
and Preference not to exceed $400 million, and/or (D) to enter
into arrangements for the issuance and sale of not to exceed $250
million aggregate principal amount of tax-exempt bonds ("Tax-
Exempt Bonds") in one or more series for the financing of certain
pollution control facilities, including but not limited to sewage
and/or solid waste disposal facilities that have not heretofore
been the subject of such financing, or for the refinancing of
outstanding Tax-Exempt Bonds issued for that purpose, including
the possible issuance and pledge of one or more new series of
Bonds, MTNs and/or Debentures ("Collateral Bonds"), and/or the
purchasing of letters of credit and/or insurance, in an aggregate
principal or stated amount (including such Collateral Bonds,
letters of credit and/or insurance) not to exceed $275 million as
collateral security for such Tax-Exempt Bonds (the financings
contemplated in (A) through (D) above being hereinafter
collectively referred to as "New Financing Plan"), and/or (E) to
acquire, from time to time, all or a portion of one or more
series of the Company's outstanding Tax-Exempt bonds previously
issued for the benefit of the Company (collectively, the "New
Acquisition Program").
1. The Company is a corporation validly organized and
existing under the laws of the State of Texas.
2. All actions necessary to make valid the participation
by the Company in the proposed transactions described
in (A) through (E) above will have been taken when:
(a) the Application-Declaration shall have been
granted and permitted to become effective in
accordance with the applicable provisions of the
Holding Company Act;
(b) appropriate final actions shall have been taken by
the Board of Directors and/or an Authorized
Officer of the Company with respect to the
proposed transactions;
(c) each of the agreements referred to in the
Application-Declaration or otherwise related to
said proposed transactions shall have been duly
executed and delivered by each of the parties
thereto; and
(d) the Bonds, MTNs, Debentures, Entity Interests,
Preferred Stock, Preference Stock and/or Tax-
Exempt Bonds shall have been appropriately issued
and delivered for the consideration contemplated.
3. When the foregoing steps shall have been taken and in
the event said proposed transactions are otherwise
consummated (i) in accordance with the Application-
Declaration and the related order or orders of the
Commission, (ii) within the limits specified in the
Company's Mortgage and Deed of Trust, as supplemented
and as proposed to further supplemented, and the
Company's Restated Articles of Incorporation, as
amended and as proposed to be further amended and (iii)
in accordance with appropriate resolutions of the Board
of Directors and/or certificates of the authorized
officer(s) of the Company:
(a) all state laws that relate or are applicable to
the participation by the Company in the proposed
transactions (other than so-called "blue-sky" laws
or similar laws, upon which I do not pass herein)
will have been complied with;
(b) the Bonds, the MTNs, the Debentures, the Entity
Subordinated Debentures and/or the Collateral
Bonds will be valid and binding obligations of the
Company in accordance with their terms, except as
limited by bankruptcy, insolvency, reorganization
or other similar laws affecting enforcement of
mortgagees' and other creditors' rights;
(c) the Preferred Stock and/or the Preference Stock
will be validly issued, fully paid and non-
assessable, and the holders thereof will be
entitled to the rights and privileges appertaining
thereto set forth in the Company's Restates
Articles of Incorporation, as amended, and as they
are proposed to be further amended;
(d) the Company will have legally acquired all or a
portion of one or more series of the Company's
outstanding Tax-Exempt Bonds being acquired; and
(e) the consummation of the proposed transactions by
the Company will not violate the legal rights of
the holders of any securities issued by the
Company and will not violate the legal rights of
the holders of any securities issued by the
Company or any associate company thereof.
I am a member of the Texas and Louisiana Bars and do not
hold myself out herein as an expert on the law of any other
state.
I hereby consent to the reliance by Reid & Priest LLP on
this opinion in rendering their opinion to you of even date
herewith and to the use of this opinion as an exhibit to the
Application-Declaration.
Very truly yours,
/s/ Laurence M. Hamric
Laurence M. Hamric
Corporate and Securities
Entergy Services, Inc.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<SUBSIDIARY>
<NUMBER> 003
<NAME> GULF STATES UTILITIES COMPANY
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1995
<PERIOD-END> SEP-30-1995 SEP-30-1995
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 4,655,790 4,655,790
<OTHER-PROPERTY-AND-INVEST> 55,560 55,560
<TOTAL-CURRENT-ASSETS> 757,810 743,417
<TOTAL-DEFERRED-CHARGES> 1,389,063 1,437,525
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 6,858,223 6,892,292
<COMMON> 114,055 114,055
<CAPITAL-SURPLUS-PAID-IN> 1,152,469 1,152,064
<RETAINED-EARNINGS> 357,171 354,942
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,623,695 1,621,061
0 0
376,531 400,000
<LONG-TERM-DEBT-NET> 2,250,420 2,263,654
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 70,425 70,425
0 0
<CAPITAL-LEASE-OBLIGATIONS> 95,051 95,051
<LEASES-CURRENT> 37,366 37,366
<OTHER-ITEMS-CAPITAL-AND-LIAB> 2,404,735 2,404,735
<TOT-CAPITALIZATION-AND-LIAB> 6,858,223 6,892,292
<GROSS-OPERATING-REVENUE> 1,784,563 1,784,563
<INCOME-TAX-EXPENSE> 23,057 3,997
<OTHER-OPERATING-EXPENSES> 1,504,946 1,504,946
<TOTAL-OPERATING-EXPENSES> 1,528,003 1,508,943
<OPERATING-INCOME-LOSS> 256,560 275,620
<OTHER-INCOME-NET> (37,703) (37,703)
<INCOME-BEFORE-INTEREST-EXPEN> 218,857 237,917
<TOTAL-INTEREST-EXPENSE> 198,977 246,119
<NET-INCOME> 19,880 (8,202)
29,837 3,981
<EARNINGS-AVAILABLE-FOR-COMM> (9,954) (912,183)
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<SUBSIDIARY>
<NUMBER> 003
<NAME> GULF STATES UTILITITES COMPANY
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1995
<PERIOD-END> SEP-30-1995 SEP-30-1995
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 4,655,790 4,655,790
<OTHER-PROPERTY-AND-INVEST> 55,560 55,560
<TOTAL-CURRENT-ASSETS> 757,810 736,000
<TOTAL-DEFERRED-CHARGES> 1,389,063 1,424,107
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 6,858,223 6,871,457
<COMMON> 114,055 114,055
<CAPITAL-SURPLUS-PAID-IN> 1,152,469 1,146,593
<RETAINED-EARNINGS> 357,171 339,578
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,623,695 1,600,226
0 0
376,531 400,000
<LONG-TERM-DEBT-NET> 2,250,420 2,263,654
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 70,425 70,425
0 0
<CAPITAL-LEASE-OBLIGATIONS> 95,051 95,051
<LEASES-CURRENT> 37,366 37,366
<OTHER-ITEMS-CAPITAL-AND-LIAB> 2,404,735 2,404,735
<TOT-CAPITALIZATION-AND-LIAB> 6,858,223 6,871,457
<GROSS-OPERATING-REVENUE> 1,784,563 1,784,563
<INCOME-TAX-EXPENSE> 23,057 19,361
<OTHER-OPERATING-EXPENSES> 1,551,060 1,504,946
<TOTAL-OPERATING-EXPENSES> 1,528,003 1,524,307
<OPERATING-INCOME-LOSS> 256,560 260,256
<OTHER-INCOME-NET> (37,703) (37,703)
<INCOME-BEFORE-INTEREST-EXPEN> 218,857 222,553
<TOTAL-INTEREST-EXPENSE> 198,977 208,119
<NET-INCOME> 19,880 14,434
29,834 41,981
<EARNINGS-AVAILABLE-FOR-COMM> (9,954) (27,547)
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
PRO FORMA BALANCE SHEET
SEPTEMBER 30, 1995
(Unaudited)
<S> <C> <C> <C>
Adjustments to Reflect
Transactions Proposed
-------------------------------------------------------
Before In Present After
ASSETS Transaction Filing Transaction
----------------- ----------------- -----------------
(In Thousands)
Utility Plant:
Electric $6,928,954 $6,928,954
Natural gas 44,505 44,505
Steam products 77,414 77,414
Property under capital leases 79,323 79,323
Construction work in progress 118,319 118,319
Nuclear fuel under capital leases 53,102 53,102
----------------- ----------------- -----------------
Total 7,301,617 7,301,617
Less - accumulated depreciation
and amortization 2,645,827 2,645,827
----------------- ----------------- -----------------
Utility plant - net 4,655,790 4,655,790
----------------- ----------------- -----------------
Other Property and Investments:
Decommissioning trust fund 26,993 26,993
Other - at cost (less accumulated depreciation) 28,567 28,567
----------------- ----------------- -----------------
Total 55,560 55,560
----------------- ----------------- -----------------
Current Assets:
Cash and cash equivalents:
Cash 13,893 ($13,893)
Temporary cash investments - at cost,
which approximates market -
Associated companies 35,496 35,496
Other 212,849 (7,917) 204,932
----------------- ----------------- -----------------
Total cash and cash equivalents 262,238 (21,810) 240,428
Accounts receivable:
Customer (less allowance for
doubtful accounts of $0.7 million) 97,846 97,846
Associated companies 6,908 6,908
Other 11,864 11,864
Accrued unbilled revenues 82,227 82,227
Deferred fuel costs 20,932 20,932
Accumulated deferred income taxes 26,448 26,448
Fuel inventory 29,382 29,382
Materials and supplies - at average cost 101,820 101,820
Rate deferrals 95,469 95,469
Prepayments and other 22,676 22,676
----------------- ----------------- -----------------
Total 757,810 (21,810) 736,000
----------------- ----------------- -----------------
Deferred Debits and Other Assets:
Regulatory Assets:
Rate deferrals 444,195 444,195
SFAS 109 regulatory asset - net 444,420 444,420
Unamortized loss on reacquired debt 62,973 27,915 90,888
Other regulatory assets 29,683 29,683
Long-term receivables 254,432 254,432
Other 153,360 7,129 160,489
----------------- ----------------- -----------------
Total 1,389,063 35,044 1,424,107
----------------- ----------------- -----------------
TOTAL $6,858,223 $13,234 $6,871,457
================= ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
PRO FORMA BALANCE SHEET
SEPTEMBER 30, 1995
(Unaudited)
<S> <C> <C> <C>
Adjustments to Reflect
Transactions Proposed
-------------------------------------------------------
Before In Present After
CAPITALIZATION AND LIABILITIES Transaction Filing Transaction
----------------- ----------------- -----------------
(In Thousands)
Capitalization:
Common stock, no par value, authorized
200,000,000 shares; issued and
outstanding 100 shares $114,055 $114,055
Paid-in capital 1,152,469 ($5,876) 1,146,593
Retained earnings 357,171 (17,593) 339,578
----------------- ----------------- -----------------
Total common shareholder's equity 1,623,695 (23,469) 1,600,226
Preferred / Preference stock 376,531 23,469 400,000
Long-term debt 2,250,420 13,234 2,263,654
----------------- ----------------- -----------------
Total 4,250,646 13,234 4,263,880
----------------- ----------------- -----------------
Other Noncurrent Liabilities:
Obligations under capital leases 95,051 95,051
Other 76,170 76,170
----------------- ----------------- -----------------
Total 171,221 171,221
----------------- ----------------- -----------------
Current Liabilities:
Currently maturing long-term debt 70,425 70,425
Accounts payable:
Associated companies 39,388 39,388
Other 111,833 111,833
Customer deposits 21,793 21,793
Taxes accrued 48,179 48,179
Interest accrued 59,581 59,581
Nuclear refueling reserve 21,522 21,522
Obligations under capital leases 37,366 37,366
Reserve for rate refund 5,704 5,704
Other 83,255 83,255
----------------- ----------------- -----------------
Total 499,046 499,046
----------------- ----------------- -----------------
Deferred Credits:
Accumulated deferred income taxes 1,144,821 1,144,821
Accumulated deferred investment
tax credits 220,583 220,583
Deferred River Bend finance charges 64,137 64,137
Other 507,769 507,769
----------------- ----------------- -----------------
Total 1,937,310 1,937,310
----------------- ----------------- -----------------
TOTAL $6,858,223 $13,234 $6,871,457
================= ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
PRO FORMA STATEMENT OF INCOME
TWELVE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<S> <C> <C> <C>
Adjustments to Reflect
Transactions Proposed
-------------------------------------------------------
Before In Present After
Transaction Filing Transaction
----------------- ----------------- -----------------
(In Thousands)
Operating Revenues:
Electric $1,713,943 $1,713,943
Natural gas 23,545 23,545
Steam products 47,075 47,075
----------------- ----------------- -----------------
Total 1,784,563 1,784,563
Operating Expenses:
Operation and maintenance:
Fuel and fuel-related expenses 515,301 515,301
Purchased power 177,009 177,009
Nuclear refueling outage expenses 13,291 13,291
Other operation and maintenance 413,815 413,815
Depreciation and amortization 202,626 202,626
Taxes other than income taxes 116,545 116,545
Income taxes 23,057 $(3,696) 19,361
Amortization of rate deferrals 66,359 66,359
----------------- ----------------- -----------------
Total 1,528,003 (3,696) 1,524,307
----------------- ----------------- -----------------
Operating Income 256,560 3,696 260,256
----------------- ----------------- -----------------
Other Income (Deductions):
Allowance for equity funds used
during construction 1,048 1,048
Write-off of plant held for future use (85,476) (85,476)
Miscellaneous - net 23,633 23,633
Income taxes 23,092 23,092
----------------- ----------------- -----------------
Total (37,703) (37,703)
----------------- ----------------- -----------------
Interest Charges:
Interest on long-term debt 192,913 9,142 202,055
Other interest - net 6,992 6,992
Allowance for borrowed funds used
during construction (928) (928)
----------------- ----------------- -----------------
Total 198,977 9,142 208,119
----------------- ----------------- -----------------
Net Income 19,880 (5,446) 14,434
Preferred and Preference Stock Dividend Requirements
and Other 29,834 12,147 41,981
----------------- ----------------- -----------------
Earnings Applicable to Common Stock ($9,954) ($17,593) ($27,547)
================= ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
PRO FORMA STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<S> <C> <C> <C>
Adjustments to Reflect
Transactions Proposed
-------------------------------------------------------
Before In Present After
Transaction Filing Transaction
----------------- ----------------- -----------------
(In Thousands)
Retained Earnings - October 1, 1994 $367,323 $367,323
Add
Net Income 19,880 ($5,446) 14,434
----------------- ----------------- -----------------
Total 387,203 (5,446) 381,757
----------------- ----------------- -----------------
Deduct:
Dividends declared on preferred stock 29,633 8,770 38,403
Preferred stock expense 399 3,377 3,776
----------------- ----------------- -----------------
Total 30,032 12,147 42,179
----------------- ----------------- -----------------
Retained Earnings - September 30, 1995 $357,171 ($17,593) $339,578
================= ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
ADJUSTMENTS TO REFLECT TRANSACTIONS PROPOSED IN PRESENT FILING
EXCLUDING ISSUANCE OF MIPS
AT SEPTEMBER 30, 1995
<S> <C> <C>
Entry No. 1
Cash 890,625,000
Unamortized Debt Expense 9,375,000
Long-Term Debt - Bonds / Medium Term Notes 900,000,000
To record the sale of $900 million principal amount of Bonds / Medium
Term Notes at various maturity dates at various interest rates, as well as
the expenses incurred in connection with the issuance.
Entry No. 2
Interest on Long-Term Debt 76,500,000
Cash 76,500,000
To record interest, and subsequent payment, on Bonds / Medium
Term Notes (assuming 8.5% interest rate).
Entry No. 3
Long Term Debt - First Mortgage Bonds 895,000,000
Unamortized Premium 66,000
Unamortized Loss on Reacquired Debt 21,882,000
Unamortized Debt Expense 3,353,000
Cash 913,595,000
To record early redemption of First Mortgage Bonds at various
maturity dates and at various interest rates.
Entry No. 4
Cash 70,708,000
Interest Expense 70,708,000
To record the reduction in interest expense on the retirement of First Mortgage
Bonds.
Entry No.5
Cash 246,250,000
Unamortized Debt Expense 3,750,000
Long-Term Debt - Tax-Exempt Bonds 250,000,000
To record the sale of $250 million principal amount of Tax-Exempt Bonds
and related issuance expenses.
Entry No. 6
Interest on Long-Term Debt 20,000,000
Cash 20,000,000
To record annual interest, and subsequent payment, on Tax-Exempt Bonds
(assuming 8% interest rate).
Entry No. 7
Long-Term Debt - Tax-Exempt Bonds 241,700,000
Unamortized Loss on Reacquired Debt 6,033,000
Unamortized Debt Expense 2,643,000
Cash 245,090,000
To record early redemption of Tax-Exempt Bonds at various maturity
dates at various interest rates.
Entry No. 8
Cash 16,650,000
Interest on Long-Term Debt 16,650,000
To record the reduction in interest expense on the retirement of
Tax-Exempt Bonds.
Entry No. 9
Cash 394,529,000
Capital Stock Expense 5,471,000
Preferred / Preference Stock 400,000,000
To record issuance of $400 million of Preferred / Preference Stock and
related issuance costs.
Entry No. 10
Preferred and Preference Stock Dividend Requirements
and Other 38,000,000
Cash 38,000,000
To record increase in dividend payments related to issuance of Preferred /
Preference Stock.
Entry No. 11
Preferred / Preference Stock 376,531,000
Additional Paid-In Capital 405,000
Preferred and Preference Stock Dividend Requirements
and Other 3,377,000
Cash 380,313,000
To record early redemption of Preferred / Preference Stock, various issues.
Entry No. 12
Cash 29,230,000
Preferred and Preference Stock
Dividend Requirements and Other 29,230,000
To record decrease in dividend payments related to redemption
of Preferred / Preference Stock.
Entry No. 13
Cash 3,696,000
Income Taxes 3,696,000
To record the decrease in Income Taxes related to the net increase ($9,142,000)
in interest expense from refinancing of First Mortgage Bonds, Medium Term
Notes and Tax-Exempt Bonds.
Entry No. 14
Cash 7,917,000
Temporary Cash Investments 7,917,000
To reclass negative cash balance.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
PRO FORMA BALANCE SHEET
SEPTEMBER 30, 1995
(Unaudited)
<S> <C> <C> <C>
Adjustments to Reflect
Transactions Proposed
-------------------------------------------------------
Before In Present After
ASSETS Transaction Filing Transaction
----------------- ----------------- -----------------
(In Thousands)
Utility Plant:
Electric $6,928,954 $6,928,954
Natural gas 44,505 44,505
Steam products 77,414 77,414
Property under capital leases 79,323 79,323
Construction work in progress 118,319 118,319
Nuclear fuel under capital leases 53,102 53,102
----------------- ----------------- -----------------
Total 7,301,617 7,301,617
Less - accumulated depreciation
and amortization 2,645,827 2,645,827
----------------- ----------------- -----------------
Utility plant - net 4,655,790 4,655,790
----------------- ----------------- -----------------
Other Property and Investments:
Decommissioning trust fund 26,993 26,993
Other - at cost (less accumulated depreciation) 28,567 28,567
----------------- ----------------- -----------------
Total 55,560 55,560
----------------- ----------------- -----------------
Current Assets:
Cash and cash equivalents:
Cash 13,893 $0 13,893
Temporary cash investments - at cost,
which approximates market -
Associated companies 35,496 35,496
Other 212,849 212,849
----------------- ----------------- -----------------
Total cash and cash equivalents 262,238 0 262,238
Accounts receivable:
Customer (less allowance for
doubtful accounts of $0.7 million) 97,846 97,846
Associated companies 6,908 6,908
Other 11,864 11,864
Accrued unbilled revenues 82,227 82,227
Deferred fuel costs 20,932 20,932
Accumulated deferred income taxes 26,448 26,448
Fuel inventory 29,382 29,382
Materials and supplies - at average cost 101,820 101,820
Rate deferrals 95,469 95,469
Prepayments and other 22,676 22,676
----------------- ----------------- -----------------
Total 757,810 0 757,810
----------------- ----------------- -----------------
Deferred Debits and Other Assets:
Regulatory Assets:
Rate deferrals 444,195 444,195
SFAS 109 regulatory asset - net 444,420 444,420
Unamortized loss on reacquired debt 62,973 0 62,973
Other regulatory assets 29,683 29,683
Long-term receivables 254,432 254,432
Other 153,360 0 153,360
----------------- ----------------- -----------------
Total 1,389,063 0 1,389,063
----------------- ----------------- -----------------
TOTAL $6,858,223 $0 $6,858,223
================= ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
PRO FORMA BALANCE SHEET
SEPTEMBER 30, 1995
(Unaudited)
<S> <C> <C> <C>
Adjustments to Reflect
Transactions Proposed
-------------------------------------------------------
Before In Present After
CAPITALIZATION AND LIABILITIES Transaction Filing Transaction
----------------- ----------------- -----------------
(In Thousands)
Capitalization:
Common stock, no par value, authorized
200,000,000 shares; issued and
outstanding 100 shares $114,055 $114,055
Paid-in capital 1,152,469 $0 1,152,469
Retained earnings 357,171 0 357,171
----------------- ----------------- -----------------
Total common shareholder's equity 1,623,695 0 1,623,695
Preferred / Preference stock 376,531 0 376,531
Minority interest in preferred securities of subsidiary 0 0
Long-term debt 2,250,420 0 2,250,420
----------------- ----------------- -----------------
Total 4,250,646 0 4,250,646
----------------- ----------------- -----------------
Other Noncurrent Liabilities:
Obligations under capital leases 95,051 95,051
Other 76,170 76,170
----------------- ----------------- -----------------
Total 171,221 171,221
----------------- ----------------- -----------------
Current Liabilities:
Currently maturing long-term debt 70,425 70,425
Accounts payable:
Associated companies 39,388 39,388
Other 111,833 111,833
Customer deposits 21,793 21,793
Taxes accrued 48,179 48,179
Interest accrued 59,581 59,581
Nuclear refueling reserve 21,522 21,522
Obligations under capital leases 37,366 37,366
Reserve for rate refund 5,704 5,704
Other 83,255 83,255
----------------- ----------------- -----------------
Total 499,046 499,046
----------------- ----------------- -----------------
Deferred Credits:
Accumulated deferred income taxes 1,144,821 1,144,821
Accumulated deferred investment
tax credits 220,583 220,583
Deferred River Bend finance charges 64,137 64,137
Other 507,769 507,769
----------------- ----------------- -----------------
Total 1,937,310 1,937,310
----------------- ----------------- -----------------
TOTAL $6,858,223 $0 $6,858,223
================= ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
PRO FORMA STATEMENT OF INCOME
TWELVE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<S> <C> <C> <C>
Adjustments to Reflect
Transactions Proposed
-------------------------------------------------------
Before In Present After
Transaction Filing Transaction
----------------- ----------------- -----------------
(In Thousands)
Operating Revenues:
Electric $1,713,943 1,713,943
Natural gas 23,545 23,545
Steam products 47,075 47,075
----------------- ----------------- -----------------
Total 1,784,563 1,784,563
Operating Expenses:
Operation and maintenance:
Fuel and fuel-related expenses 515,301 515,301
Purchased power 177,009 177,009
Nuclear refueling outage expenses 13,291 13,291
Other operation and maintenance 413,815 413,815
Depreciation and amortization 202,626 202,626
Taxes other than income taxes 116,545 116,545
Income taxes 23,057 $0 23,057
Amortization of rate deferrals 66,359 66,359
----------------- ----------------- -----------------
Total 1,528,003 0 1,528,003
----------------- ----------------- -----------------
Operating Income 256,560 0 256,560
----------------- ----------------- -----------------
Other Income (Deductions):
Allowance for equity funds used
during construction 1,048 1,048
Write-off of plant held for future use (85,476) (85,476)
Miscellaneous - net 23,633 23,633
Income taxes 23,092 23,092
----------------- ----------------- -----------------
Total (37,703) (37,703)
----------------- ----------------- -----------------
Interest Charges:
Interest on long-term debt 192,913 0 192,913
Other interest - net 6,992 6,992
Allowance for borrowed funds used
during construction (928) (928)
Dividends on preferred securities of subsidiary 0 0
----------------- ----------------- -----------------
Total 198,977 0 198,977
----------------- ----------------- -----------------
Net Income 19,880 0 19,880
Preferred and Preference Stock Dividend Requirements
and Other 29,834 0 29,834
----------------- ----------------- -----------------
Earnings Applicable to Common Stock ($9,954) $0 ($9,954)
================= ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
PRO FORMA STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
<S> <C> <C> <C>
Adjustments to Reflect
Transactions Proposed
-------------------------------------------------------
Before In Present After
Transaction Filing Transaction
----------------- ----------------- -----------------
(In Thousands)
Retained Earnings - October 1, 1994 $367,323 $367,323
Add
Net Income 19,880 $0 19,880
----------------- ----------------- -----------------
Total 387,203 0 387,203
----------------- ----------------- -----------------
Deduct:
Dividends declared on preferred stock 29,633 0 29,633
Preferred stock expense 399 0 399
----------------- ----------------- -----------------
Total 30,032 0 30,032
----------------- ----------------- -----------------
Retained Earnings - September 30, 1995 $357,171 $0 $357,171
================= ================= =================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GULF STATES UTILITIES COMPANY
ADJUSTMENTS TO REFLECT TRANSACTIONS PROPOSED IN PRESENT FILING
INCLUDING ISSUANCE OF MIPS
AT SEPTEMBER 30, 1995
<S> <C> <C>
Entry No. 1
Cash 890,625,000
Unamortized Debt Expense 9,375,000
Long-Term Debt - Bonds / Medium Term Notes 900,000,000
To record the sale of $900 million principal amount of Bonds / Medium
Term Notes at various maturity dates at various interest rates, as well as
the expenses incurred in connection with the issuance.
Entry No. 2
Interest on Long-Term Debt 76,500,000
Cash 76,500,000
To record interest, and subsequent payment, on Bonds / Medium
Term Notes (assuming 8.5% interest rate).
Entry No. 3
Long Term Debt - First Mortgage Bonds 895,000,000
Unamortized Premium 66,000
Unamortized Loss on Reacquired Debt 21,882,000
Unamortized Debt Expense 3,353,000
Cash 913,595,000
To record early redemption of First Mortgage Bonds at various
maturity dates and at various interest rates.
Entry No. 4
Cash 70,708,000
Interest Expense 70,708,000
To record the reduction in interest expense on the retirement of First Mortgage
Bonds.
Entry No.5
Cash 246,250,000
Unamortized Debt Expense 3,750,000
Long-Term Debt - Tax-Exempt Bonds 250,000,000
To record the sale of $250 million principal amount of Tax-Exempt Bonds
and related issuance expenses.
Entry No. 6
Interest on Long-Term Debt 20,000,000
Cash 20,000,000
To record annual interest, and subsequent payment, on Tax-Exempt Bonds
(assuming 8% interest rate).
Entry No. 7
Long-Term Debt - Tax-Exempt Bonds 241,700,000
Unamortized Loss on Reacquired Debt 6,033,000
Unamortized Debt Expense 2,643,000
Cash 245,090,000
To record early redemption of Tax-Exempt Bonds at various maturity
dates at various interest rates.
Entry No. 8
Cash 16,650,000
Interest on Long-Term Debt 16,650,000
To record the reduction in interest expense on the retirement of
Tax-Exempt Bonds.
Entry No. 9
Cash 386,582,000
Unamortized Expense on Issuance of MIPS 13,418,000
Minority Interest in Preferred Securities of Subsidiary 400,000,000
To record issuance of $400 million of MIPS and related issuance costs by the
Issuing Entity.
Entry No.10
Dividends on Preferred Securities of Subsidiary 38,000,000
Cash 38,000,000
To record annual dividends paid on MIPS by the Issuing Entity (averaging
approximately 9.5%).
Entry No. 11
Preferred / Preference Stock 376,531,000
Additional Paid-In Capital 405,000
Preferred and Preference Stock Dividend Requirements
and Other 3,377,000
Cash 380,313,000
To record early redemption of Preferred / Preference Stock , various issues.
Entry No. 12
Cash 29,230,000
Preferred and Preference Stock
Dividend Requirements and Other 29,230,000
To record decrease in dividend payments related to redemption of
Preferred / Preference Stock.
Entry No.13
Cash 19,060,000
Income Taxes 19,060,000
To record the decrease in Income Taxes related to the net increase ($47,142,000)
in interest expense from refinancing of First Mortgage Bonds, Medium Term
Notes, Tax-Exempt Bonds and issuance of MIPS.
Entry No. 14
Cash 500,000
Temporary Cash Investments 500,000
To reclass negative cash balance.
</TABLE>
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