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. 70-8002 *
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, July 8, 1993, and June
30, 1995, respectively, this is to certify that the following
transactions were carried out during the three (3) months ended
March 31, 1996 by Entergy Enterprises, Inc. (formerly Electec,
Inc.) pursuant to the authorization of the SEC.
Programs Authorized
Pursuant to the Orders, Entergy Enterprises, Inc.
(Enterprises) is authorized to (a) conduct preliminary
development activities with respect to various investment
opportunities for the Entergy System, (b) market to non-
associates the System's expertise and capabilities in energy-
related areas, including the expertise of Entergy Power, Inc.
(EPI) gained from its bulk power business, (c) market to non-
associates intellectual property developed by System companies,
(d) provide various consulting, management, administrative and
support services to associate companies, excluding certain
associate companies (Excluded Companies<FN1>), (e) provide directly,
or indirectly through one or more special purpose subsidiary
companies of Entergy or Enterprises, various operations and
maintenance services to non-associate or associate companies
(other than Excluded 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
During the quarter, 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 $2,277,604 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 $1,614,828 for preliminary development activities
associated with potential investments that would qualify as
"foreign utility companies" under Section 33 of the Act.
Enterprises also expended $635,337 for preliminary development
activities associated with potential investments that would
qualify as "nonutility business." Finally, Enterprises expended
$128,246 and $198,669 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.,Entergy Argentina S.A. Ltd., Entergy Integrated Solutions,
Inc. (EIS), formally Entergy Systems and Service, Inc. (Entergy
SASI), Entergy Power Development Corporation (EPDC), Entergy
Power Development International Corporation (EPDIC), Entergy
Pakistan, Ltd. (EPL), Entergy Power Edegel, Inc. (Edegel),
Entergy Power Holding I, Ltd. (EPHIL) and Entergy Richmond Power
Corporation (ERPC). Enterprises charged these companies for
costs incurred plus an indirect loading based upon current month
Enterprises administrative charges. In regard to EPI
($295,442.55), 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.($24,332.94),
Entergy Argentina S.A. ($10,614.34), Entergy Argentina S. A. Ltd.
($105,220.40), Entergy Integrated Solutions, Inc. ($37,897.63),
Entergy Power Development Corp. ($3,248,477.85), Entergy Power
Development International Corp. ($1,333,514.04), Entergy Pakistan
Ltd. ($17,518.07), E.P. Edegel ($514,584.79), Entergy Power
Holding I, Ltd. ($391.70) and Entergy Richmond Power Corp
($8,489.98), these services were related to management oversight
and project development.
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. The Louisiana Hydroelectric Ltd. Partnership was
charged $13,000 for services rendered during this quarter.
IV. First Pacific Networks, Inc. Transactions
A. Description of Progress in Development and Field
Testing of CCLM/AFS
As previously reported during the fourth quarter of
1995, Enterprises concluded its CCLM testing program and
does not intend to resume testing of CCLM dedicated systems
in the foreseeable future. However, consistent with
Enterprises' authorization to engage in preliminary
development activities, Enterprises continues to
investigate other utility and energy related applications of
communications technologies, including automated meter
reading, power outage reporting and consumer accessible
information such as real-time meter information and bill
estimation systems. Amounts expended by Enterprises in
connection with such preliminary development activities are
reported as "nonutility business" related expenses under
Item "1" above.
B. Costs and Revenues Re: CCLM
Total costs incurred by Enterprises in connection with the
development, field testing and marketing of CCLM or other CCLM
systems during the three-month period ending March 31, 1996,
were $ 82,900. Enterprises has no information on costs incurred
by FPN in connection with the development or marketing of
CCLM/AFS.
As previously reported, notwithstanding the amendment to the
License Agreement noted above, FPN may proceed independently with
the development of a CCLM system. Pursuant to the License
Agreement, as amended, in the event that FPN unilaterally
completes development of a CCLM system and makes it available for
commercialization, Enterprises has retained a license to use or
market CCLM within the service territory of the Entergy System.
Furthermore, Enterprises has rights under the amended License
Agreement to share in the revenues derived from the marketing of
CCLM by FPN to non-affiliates of Entergy. No such revenues were
received during the quarter.
V. Financing, Amortization and Financial Statements
During the three months ended March 31, 1996:
A. Enterprises incurred amortization expenses relating to
the organization of Entergy SASI in the amount of $6,307.
B. Enterprises' unaudited unconsolidated Balance Sheet and
unconsolidated Income Statement for the three month period ended
March 31, 1996 are included as Exhibit 1.
<PAGE>
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 15th day of May, 1996.
ENTERGY CORPORATION
By: /s/ Gerald D. McInvale
Gerald D. McInvale
Executive Vice President & Chief Financial Officer
ENTERGY ENTERPRISES, INC.
By: /s/ Terry L. Ogletree
Terry L. Ogletree
Executive Vice President
_______________________________
<FN1> The Excluded Companies are Entergy's retail operating
companies (Entergy Arkansas Inc., Entergy Louisiana Inc.,
Entergy Mississippi Inc., New Orleans Inc. and Gulf States
Inc.), System Energy Resources, Inc., System Fuels, Inc.,
Entergy Operations, Inc., Entergy Services, Inc., and any
other subsidiaries that Entergy may create whose activities
and operations are primarily related to the domestic sale
of electric energy at retail or at wholesale to affiliates
or the provision of goods or services thereto.
Exhibit 1
Page 1 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1996
(UNAUDITED)
ASSETS
PROPERTY
Furniture and Equipment $ 1,904,039.35
Intangible Assets 293,512.95
---------------
Total Property 2,197,552.30
---------------
INVESTMENTS
Investment in FPN 3,859,278.76
Investment in Entergy SASI, Inc. 138,500,000.00
Earnings from Entergy SASI, Inc. (53,565,458.97)
Special Deposits 30,000.00
---------------
88,823,819.79
---------------
CURRENT & ACCRUED ASSETS
Cash 562,198.04
Working Funds/Travel Advances 41,650.00
Temporary Cash Investments 1,996,486.38
Accounts Receivable 6,706.33
Accounts Receivable - Associated Companies 12,851,168.64
Accrued Interest 3,633.95
---------------
Total Current and Accrued Assets 15,461,843.34
---------------
DEFERRED DEBITS
Accumulated Deferred Income Tax-Fed & State 7,318,280.22
Miscellaneous Deferred Debits (342,803.46)
---------------
Total Deferred Debits 6,975,476.76
---------------
Total Assets $113,458,692.19
===============
These are interim financial statements prepared without notes.
<PAGE>
Exhibit 1
Page 2 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 1996
(UNAUDITED)
CAPITAL
Common Stock $ 54,400,000.00
Miscellaneous Paid-in Capital 125,000,000.00
Retained Earnings (74,155,057.98)
---------------
Total Capital 105,244,942.02
---------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 90,415.62
Accounts Payable to Associated Companies 229,711.76
Taxes Accrued 746,505.87
Tax Collections Payable 11,743.73
Miscellaneous Current & Accrued Liabilities 2,409,741.09
---------------
Total Current & Accrued Liabilities 3,488,118.07
---------------
DEFERRED CREDITS
Other Deferred Credits 4,725,632.10
---------------
Total Deferred Credits 4,725,632.10
---------------
Total Liabilities 8,213,750.17
---------------
Total Capital & Liabilities $113,458,692.19
===============
These are interim financial statements prepared without notes.
<PAGE>
Exhibit 1
Page 3 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED INCOME STATEMENT
THREE MONTHS ENDED MARCH 31, 1996
(UNAUDITED)
REVENUE
Services Rendered Non-Associates $ 60,899.17
Services Rendered Associates 3,310,881.39
Equity in Earnings of Subsidiaries (6,861,395.52)
Interest Income 94,883.43
--------------
Total Revenue (3,394,731.53)
--------------
EXPENSES
Salaries, Wages and Benefits 3,339,441.64
Outside Services 1,629,967.36
Rent 313,180.24
Administrative and General 1,305,953.82
Active Development Credit (1,601,967.07)
Insurance 56,601.00
Directors' Fees and Expenses 6,000.00
--------------
Total Administrative and General Expense 5,049,176.99
--------------
Taxes Other Than Income 1,263.45
Depreciation and Amortization 211,702.05
Amortization of SASI Organization Costs 6,306.81
Amortization of FPN Organization Costs
Miscellaneous Expenses 3,486.37
--------------
Total Expenses 5,271,935.67
--------------
Interest Expense 0.00
--------------
Income (Loss) Before Income Taxes (8,666,667.20)
Income Taxes - Federal (283,353.17)
Income Taxes - State (Benefit) (56,238.05)
Provision for Deferred Income Taxes - Federal (295,693.28)
Provision for Deferred Income Taxes - State (58,687.22)
--------------
Net Income (Loss) $(7,972,695.48)
==============
These are interim financial statements prepared without notes.
