UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
* * * * * * * * * * * * * * * * *
In the Matter of *
*
ENTERGY CORPORATION * CERTIFICATE
ENTERGY ENTERPRISES, INC. * PURSUANT TO RULE 24
*
File No. 70-7851 *
File No. 70-7947 *
File No. 70-8002 *
File No. 70-8010 *
File No. 70-8105 *
*
(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, as amended (Act), modified by the
application(s) - declaration(s), as amended, in the above
referenced files and the related orders dated July 25, 1991,
December 14, 1992(2), December 28, 1992 and July 8, 1993,
respectively, this is to certify that the following transactions
were carried out during the three (3) months ended September 30,
1994 by Entergy Enterprises, Inc. (formerly Electec, Inc.)
pursuant to the authorization of the SEC.
Programs Authorized
Pursuant to the Orders, Entergy Enterprises, Inc.
(Enterprises) was authorized during the quarter ended September
30, 1994 to (a) conduct preliminary development activities with
respect to various investment opportunities for the Entergy
System, (b) market management, operating, technical, training
and other expertise and intellectual properties developed by
System companies to non-affiliates, (c) render various consulting
services to certain affiliated companies in connection with
investments in Argentina, (d) be responsible for marketing the
expertise of Entergy Power, Inc. (EPI) gained through its bulk
power business, (e) provide certain management and support
services to associate companies excluding those which are
affiliated retail electric companies, exempt wholesale
generators, or foreign utility companies, and (f) develop and
field test a proposed telecommunications system for advanced
energy management and other utility applications.
During the quarter, Enterprises participated in the
following:
I. Preliminary Development Activities
Enterprises has been engaged in preliminary development
activities relating to investigating sites, research, contract
drafting and negotiations, acquiring options or rights,
partnership selection and other activities necessary to identify
and analyze investment opportunities for Entergy Corporation
(Entergy). These development activities include domestic and
international opportunities.
During the quarter, Enterprises expended $1,139,697 for
preliminary development activities associated with potential
investments that would qualify as "exempt wholesale generators"
under Section 32(a) of the Act. In addition, Enterprises
expended $237,726 for preliminary development activities
associated with potential investments that would qualify as
"foreign utility companies" under Section 33 of the Act.
Enterprises also expended $35,305 for preliminary development
activities associated with potential investments that would
qualify as "nonutility business." Finally, Enterprises expended
$403,420 and $140,436 for preliminary development activities
associated with demand side management activities and non-exempt
domestic wholesale generating and transmission facilities,
respectively.
II. Management Services Provided to Associate Companies
Enterprises provided certain management and support services
to its associate companies, EPI, Entergy S.A., Entergy Argentina
S.A. and Entergy Systems and Service, Inc. (Entergy SASI). In
regard to EPI, these services included marketing of EPI capacity
and energy to other utilities at wholesale, preparation of
contracts and regulatory filings, oversight of plant operations
and maintenance by plant operators, and procurement of
transmission services. In regard to Entergy S.A., Entergy
Argentina S.A. and Entergy SASI, these services were related to
management oversight.
III. Consulting Activities with Non-Associate Companies
Enterprises, under contract with Louisiana Hydroelectric
Ltd. Partnership, continues to provide an array of technical
services/support for a hydro electric transmission line project.
Certain Entergy Services, Inc. personnel are providing the
services.
IV. First Pacific Networks, Inc. Transactions
A. Description of Progress in Development and Testing of
CCLM/AFS
During the third quarter of 1994, Enterprises and First
Pacific Networks, Inc. (FPN) continued the development and
modification of FPN's PX System in order to create a Customer
Controlled Load Management/Automated Feedback System (CCLM/AFS)
for advanced energy management and other utility applications.
During this period, the testing of the system revealed a
potential problem with the in-house communications protocol. A
decision has been made to replace the existing proprietary in-
home communications protocol with a more open system. This is
requiring some hardware and software changeouts and/or upgrades
to both the in-home network and the Intelligent Utility Units.
All changeouts and upgrades should be completed during the fourth
quarter of 1994 and the first quarter of 1995. Further testing
will continue after these changes are made.
B. Costs and Revenues Re: CCLM/AFS
Total costs incurred by Enterprises in connection with the
development, field testing and marketing of CCLM/AFS during the
three month period ending September 30, 1994 were $286,525.
Total costs incurred by FPN and billed for 1993 and 1994 in
connection with the development, field testing and marketing of
CCLM/AFS were $1,173,432. No billings have been received from
FPN for product development since April 1993 and for field
testing since July 1994.
Enterprises received $350,000 from Sprint in connection with
the CCLM/AFS product. In exchange for this fee, Sprint and
Southern Company are allowed to obtain information from the field
testing of the CCLM/AFS product.
V. Financing, Amortization and Financial Statements
During the three months ended September 30, 1994:
A. Enterprises incurred amortization expenses relating to
the FPN license in the amount of $154,674 and to the organization
of Entergy SASI in the amount of $6,307.
B. Enterprises' unaudited unconsolidated Balance Sheet and
unconsolidated Income Statement for the nine month period ended
September 30, 1994 are included as Exhibit 1.
<PAGE>
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 14th day of November,
1994.
ENTERGY CORPORATION
By: /s/Gerald D. McInvale
Gerald D. McInvale
Chief Financial Officer
ENTERGY ENTERPRISES, INC.
By: /s/Terry L. Ogletree
Terry L. Ogletree
Executive Vice President
<PAGE>
Exhibit 1
Page 1 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 1994
(UNAUDITED)
ASSETS
PROPERTY
Furniture and Equipment $ 1,096,682.02
Intangible Assets 81,991.69
---------------
Total Property 1,178,673.71
---------------
INVESTMENTS
Investment in FPN 9,531,240.00
Investment in Entergy SASI, Inc. 13,500,000.00
Earnings from Entergy SASI, Inc. (12,344,972.45)
Special Deposits 30,000.00
---------------
10,716,267.55
---------------
CURRENT & ACCRUED ASSETS
Cash 243,445.63
Working Funds/Travel Advances 130,848.59
Temporary Cash Investments 3,153,277.98
Accounts Receivable 11,500.29
Accounts Receivable - Associated 823,133.31
Companies
Accrued Interest 10,776.35
--------------
Total Current and Accrued Assets 4,372,982.15
--------------
DEFERRED DEBITS
Investments in Active Development 831,042.46
Reserve for Investments in Active (615,993.02)
Development
FPN License (Net of Amortization) 2,399,927.85
Accumulated Deferred Income Tax- 2,762,304.60
Fed & State
Miscellaneous Deferred Debits 1,074,802.83
--------------
Total Deferred Debits 6,452,084.72
--------------
Total Assets $22,720,008.13
==============
These are interim financial statements prepared without notes.
<PAGE>
Exhibit 1
Page 2 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 1994
(UNAUDITED)
CAPITAL
Common Stock $ 51,550,000.00
Retained Earnings (26,733,859.10)
---------------
Total Capital 24,816,140.90
---------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 498,794.20
Accounts Payable to Associated 410,009.46
Companies
Taxes Accrued (5,429,262.25)
Tax Collections Payable 7,534.81
Miscellaneous Current & Accrued 766,410.90
Liabilities ---------------
Total Current & Accrued (3,746,512.88)
Liabilities ---------------
DEFERRED CREDITS
Long-Term Incentive Compensation 1,650,380.11
Other Deferred Credits 0.00
---------------
Total Deferred Credits 1,650,380.11
---------------
Total Liabilities (2,096,132.77)
---------------
Total Capital & Liabilities $ 22,720,008.13
===============
These are interim financial statements prepared without notes.
<PAGE>
Exhibit 1
Page 3 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED INCOME STATEMENT
NINE MONTHS ENDED SEPTEMBER 30, 1994
(UNAUDITED)
REVENUE
Services Rendered Non-Associates $ 111,787.15
Services Rendered Associates 1,292,950.78
Equity in Earnings of Subsidiaries (6,985,270.60)
Interest Income 66,377.67
Miscellaneous Income 898,164.19
--------------
Total Revenue (4,615,990.81)
--------------
EXPENSES
Salaries, Wages and Benefits 5,047,515.56
Outside Services 2,921,270.90
Rent 291,732.35
Administrative and General 1,197,725.53
Active Development Reserve 615,993.02
Insurance 30,181.20
Directors' Fees and Expenses 31,106.00
--------------
Total Administrative and 10,135,524.56
General Expense --------------
Taxes Other Than Income (10,886.24)
Depreciation and Amortization 280,504.73
Amortization of SASI Organization 18,920.42
Costs
Amortization of FPN Organization 669,551.10
Costs
Miscellaneous Expenses 33,977.14
--------------
Total Expenses 11,127,591.71
--------------
Interest Expense 0.00
---------------
Income (Loss) Before Income Taxes (15,743,582.52)
Income Taxes - Federal (Benefit) (3,011,621.35)
Income Taxes - State (Benefit) (748,228.90)
Provision for Deferred Income (134,413.70)
Taxes - Federal
Provision for Deferred Income 0.00
Taxes - State
---------------
Net Income (Loss) $(11,849,318.57)
===============
These are interim financial statements prepared without notes.
