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
September 30, 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 Corporation (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. These development activities include domestic and
international opportunities.
During the quarter, Enterprises expended $4,141,762 for
preliminary development activities associated with potential
investments that would qualify as "exempt wholesale generators"
(EWG's) under Section 32(a) of the Act. In addition, Enterprises
expended $1,231,053 for preliminary development activities
associated with potential investments that would qualify as
"foreign utility companies" under Section 33 of the Act.
Enterprises also expended $713,757 for preliminary development
activities associated with potential investments that would
qualify as "nonutility business." Finally, Enterprises expended
$233,509 and $317,809 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 Power Marketing Corp.,
Entergy Power Edesur Holding Ltd. (formally Entergy Argentina
S.A. & Entergy Argentina S.A. Ltd.), Entergy S.A., Entergy
Integrated Solutions, Inc. (EIS) (formally Entergy Systems and
Service, Inc.), Entergy Power Development Corporation, Entergy
Power Development International Corporation, Entergy Pakistan,
Ltd., Entergy Power Edegel, Inc., Entergy Power CBA Holding
Ltd.,(formally Entergy Power Holding I, Ltd.), Entergy Operations
Services Inc., Entergy Power Operations Corp., and Entergy
Richmond Power Corporation. Enterprises charged these companies
for costs incurred plus an indirect loading based upon current
month Enterprises administrative charges. In regard to EPI
($1,659,783.13), 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 Power Marketing
Corp.($1,883,475.73) these services included marketing of energy
to utilities at wholesale, preparation of contracts and
regulatory filings and procurement of transmission services. In
regard to EIS ($130,336.63), Entergy Power Edesur Holding Ltd.
($757,921.33), Entergy Power Development Corp. ($6,858,446.05),
Entergy Power Development International Corp. ($1,035,002.40),
Entergy Pakistan Ltd. ($31,331.38), Entergy Power Edegel, Inc.
($698,885.64), Entergy Power CBA Holding Ltd. ($17,816.11)
Entergy Operations Services Inc. ($96,072.29) and Entergy
Richmond Power Corp. ($24,732.26), 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 $13,294 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, 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
CCLM during the three-month period ending September 30,
1996, were $ 44,022 (consisting solely of costs incurred in
removing equipment installed to field test CCLM).
V. Formation and Capitalization of O&M Subsidiaries.
During the quarter, Enterprises acquired 3,000 shares of the
common stock of Entergy Operations Services, Inc., a Delaware
corporation, for a total purchase price of $3,000,000. EOSI was
organized as an "O&M Subsidiary" pursuant to the Commission's
order dated June 30, 1995 in File No. 70-8105. EOSI was organized
to engage in the business of providing operations and maintenance
services (O&M Services), to developers, owners and operators of
domestic power projects.
Entergy and Enterprises represent that no Excepted Company has
subsidized the operations of Enterprises or any O&M Subsidiary,
and that the rendering of O&M Services by O&M Subsidiaries is in
compliance with the applicable rules, regulations and orders of
the Commission and has not adversely affected the services
provided by any Excepted Company to its customers.
VI. Financing, Amortization and Financial Statements
During the three months ended September 30, 1996:
A. Enterprises incurred amortization expenses relating to
the organization of EIS in the amount of $6,307.
B. Enterprises' unaudited unconsolidated Balance Sheet and
unconsolidated Income Statement for the nine month period ended
September 30, 1996 are included as Exhibit 1.
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 14th day of November,
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., Entergy New Orleans Inc. and Entergy 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.
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 1996
(UNAUDITED)
ASSETS
PROPERTY
Furniture and Equipment $ 2,000,962.60
Intangible Assets 30,681.57
---------------
Total Property 2,031,644.17
---------------
INVESTMENTS
Investment in FPN 1,876,038.28
Investment in Entergy EIS, Inc. 163,500,000.00
Earnings from Entergy EIS, Inc. (68,051,897.97)
Entergy Operations Services, Inc. 2,951,920.29
Other Investments 90.36
Special Deposits 79,444.11
---------------
100,355,595.07
---------------
CURRENT & ACCRUED ASSETS
Cash (218,952.65)
Working Funds/Travel Advances 183,900.00
Temporary Cash Investments 0.00
Accounts Receivable (173,311.78)
Accounts Receivable - Associated Companies 19,474,976.61
Accrued Interest 931.17
---------------
Total Current and Accrued Assets 19,267,543.35
---------------
DEFERRED DEBITS
Accumulated Deferred Income Tax-Fed & State 9,226,122.24
Miscellaneous Deferred Debits (999,722.96)
---------------
Total Deferred Debits 8,226,399.28
----------------
Total Assets $ 129,881,181.87
================
These are interim financial statements prepared without notes.
<PAGE>
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 1996
(UNAUDITED)
CAPITAL
Common Stock $ 57,400,000.00
Miscellaneous Paid-in Capital 150,000,000.00
Retained Earnings (90,561,279.73)
----------------
Total Capital 116,838,720.27
----------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 852,242.96
Accounts Payable to Associated Companies 393,564.71
Taxes Accrued 3,180,864.65
Tax Collections Payable (444,155.49)
Miscellaneous Current & Accrued Liabilities 3,524,694.18
----------------
Total Current & Accrued Liabilities 7,507,211.01
----------------
DEFERRED CREDITS
Other Deferred Credits 5,535,250.59
----------------
Total Deferred Credits 5,535,250.59
----------------
Total Liabilities 13,042,461.60
----------------
Total Capital & Liabilities $ 129,881,181.87
================
These are interim financial statements prepared without notes.
<PAGE>
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED INCOME STATEMENT
NINE MONTHS ENDED SEPTEMBER 30, 1996
(UNAUDITED)
REVENUE
Services Rendered Non-Associates $ 88,376.33
Services Rendered Associates 21,072,776.27
Equity in Earnings of Subsidiaries (21,395,914.23)
Interest Income 126,657.72
Miscellaneous Income 26,706.00
----------------
Total Revenue (81,397.91)
----------------
EXPENSES
Salaries, Wages and Benefits 11,981,516.50
Outside Services 7,812,446.59
Rent 1,248,817.11
Administrative and General 5,623,673.87
Active Development Credit (3,138,218.97)
Insurance
Directors' Fees and Expenses 20,776.00
----------------
Total Administrative and General Expense 23,549,011.10
Taxes Other Than Income 60,001.40
Depreciation and Amortization 545,929.69
Amortization of EIS Organization Costs 18,920.42
Miscellaneous Expenses 14,568.60
----------------
Total Expenses 24,188,431.21
----------------
Interest Expense 45.00
----------------
Income (Loss) Before Income Taxes (24,269,874.12)
Income Taxes - Federal 323,725.26
Income Taxes - State (Benefit) 64,299.90
Provision for Deferred Income Taxes - Federal (1,238,332.80)
Provision for Deferred Income Taxes - State (245,963.72)
----------------
Net Income (Loss) $ (23,173,602.76)
================
These are interim financial statements prepared without notes.
<PAGE>
