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
December 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 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 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 $6,903,414 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 $7,101,202 for preliminary development activities
associated with potential investments that would qualify as
"foreign utility companies" under Section 33 of the Act.
Enterprises also expended $652,492 for preliminary development
activities associated with potential investments that would
qualify as "nonutility business." Finally, Enterprises expended
$45,056 and $310,466 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
($425,266.01), 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.($1,552,276.51) 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 ($85,924.42), Entergy Power Edesur Holding Ltd.
($314,117.23), ETHC ($3,391,683.33) Entergy Power Development
Corp. ($8,242,507.64), Entergy Power Development International
Corp. ($9,339,572.07), Entergy Pakistan Ltd. ($24,569.67),
Entergy Power Edegel, Inc. ($1,613,739.38), Entergy Power CBA
Holding Ltd. ($67,722.28) Entergy Operations Services Inc.
($239,521.36), Entergy Power Operations Corp. ($901,298.67) and
Entergy Richmond Power Corp. ($21,879.44), 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 $214,731 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 December 31, 1996,
were $ 45,057 (consisting solely of costs incurred in
removing equipment installed to field test CCLM).
V. Formation and Capitalization of O&M Subsidiaries.
During the quarter, no amounts were expended to form any O&M
Subsidiaries pursuant to the Commissions' order dated June 30,
1995, and no O&M Services as described in such order were
provided by any O&M Subsidiary of Entergy or Enterprises.
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 December 31, 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 twelve month period ended
December 31, 1996 are included as Exhibit 1.
<PAGE>
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 18th day of February,
1997.
ENTERGY CORPORATION
By: /s/ Gerald D. McInvale
Gerald D. McInvale
Executive Vice President & Chief Financial Officer
ENTERGY ENTERPRISES, INC.
By: /s/ Robert A. Keegan
Robert A. Keegan
Vice President and General Manager
_______________________________
<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 DECEMBER 31, 1996 (UNAUDITED)
ASSETS
PROPERTY
Furniture and Equipment $ 3,614,330.98
Intangible Assets 24,374.77
-------------------
Total Property 3,638,705.75
-------------------
INVESTMENTS
Investment in FPN 0.00
Investment in Entergy EIS, Inc. 163,500,000.00
Earnings from Entergy EIS, Inc. (85,880,630.97)
Entergy Operations Services, Inc. 2,829,518.82
Other Investments 0.00
Special Deposits 82,992.39
-------------------
80,531,880.24
-------------------
CURRENT & ACCRUED ASSETS
Cash 2,042,513.21
Working Funds/Travel Advances 260,990.22
Temporary Cash Investments 0.00
Accounts Receivable (15,168.63)
Accounts Receivable - Associated Companies 26,308,349.15
Accrued Interest 0.00
-------------------
Total Current and Accrued Assets 28,596,683.95
-------------------
DEFERRED DEBITS
Accumulated Deferred Income Tax-Fed & State 9,074,876.34
Miscellaneous Deferred Debits (980,702.43)
-------------------
Total Deferred Debits 8,094,173.91
-------------------
Total Assets $ 120,861,443.85
===================
These are interim financial statements prepared without notes.
<PAGE>
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 1996
(UNAUDITED)
CAPITAL
Common Stock $ 57,400,000.00
Miscellaneous Paid-in Capital 150,000,000.00
Retained Earnings (108,951,736.44)
-----------------
Total Capital 98,448,263.56
-----------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 9,295,609.46
Accounts Payable to Associated Companies 1,077,669.14
Taxes Accrued 702,794.11
Tax Collections Payable (114,978.77)
Miscellaneous Current & Accrued Liabilities 5,401,979.84
-----------------
Total Current & Accrued Liabilities 16,363,073.78
-----------------
DEFERRED CREDITS
Other Deferred Credits 6,050,106.51
-----------------
Total Deferred Credits 6,050,106.51
-----------------
Total Liabilities 22,413,180.29
-----------------
Total Capital & Liabilities $ 120,861,443.85
=================
These are interim financial statements prepared without notes.
<PAGE>
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED INCOME STATEMENT
TWELVE MONTHS ENDED DECEMBER 31, 1996
(UNAUDITED)
REVENUE
Services Rendered Non-Associates $ 303,107.46
Services Rendered Associates 36,370,109.69
Equity in Earnings of Subsidiaries (39,347,048.70)
Interest Income 165,574.03
Miscellaneous Income (1,849,332.28)
--------------------
Total Revenue (4,357,589.80)
--------------------
EXPENSES
Salaries, Wages and Benefits 18,650,205.95
Outside Services 12,324,987.10
Rent 1,778,426.47
Administrative and General 8,458,071.40
Active Development Credit (4,199,340.01)
Insurance -
Directors' Fees and Expenses 27,371.00
--------------------
Total Administrative and General Expense 37,039,721.91
--------------------
Taxes Other Than Income 221,306.39
Depreciation and Amortization 866,692.33
Amortization of EIS Organization Costs 25,227.22
Miscellaneous Expenses 22,347.22
--------------------
Total Expenses 38,175,295.07
--------------------
Interest Expense 45.00
--------------------
Income (Loss) Before Income Taxes (42,532,929.87)
Income Taxes - Federal 265,910.48
Income Taxes - State (Benefit) 98,269.74
Provision for Deferred Income Taxes - Federal (1,443,680.75)
Provision for Deferred Income Taxes - State 110,630.13
--------------------
Net Income (Loss) (41,564,059.47)
====================
These are interim financial statements prepared without notes.
