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
June 30, 1997 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, and (f) develop and field test
telecommunications systems 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 $6,109 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
recorded $8,109,282 for preliminary development activities
associated with potential investments that would qualify as
"foreign utility companies" under Section 33 of the Act.
Enterprises also expended $437,801 for preliminary development
activities associated with potential investments that would
qualify as "nonutility business." Finally, Enterprises recorded
a credit of $2,215 and an expenditure of $1,961,231 for
preliminary development activities associated with demand side
management activities and power brokering/marketing activities,
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., Entergy S.A., Entergy
Integrated Solutions, Inc. (EIS), Entergy Technology Holding
Company (ETHC), Entergy Power Development Corporation, Entergy
Power Development International Corporation, Entergy Pakistan,
Ltd., EP Edegel, Inc., Entergy Power CBA Holding Ltd.,(formerly
Entergy Power Holding I, Ltd.), Entergy Operations Services Inc.,
Entergy Power Operations Corp., Entergy Richmond Power
Corporation and Entergy Nuclear, Inc. (ENI). Enterprises
charged these companies for direct costs incurred plus an
indirect loading based upon current month Enterprises
administrative charges. In regard to EPI ($388,205), 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.($1,855,601) 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 ($482,343), Entergy
Power Edesur Holding Ltd. (a credit of $138,985), ETHC
($971,176), Entergy Power Development Corp. ($5,940,299), Entergy
Power Development International Corp. ($894,489), Entergy
Pakistan Ltd. ($18,106), EP Edegel, Inc. (a credit of $87,173),
Entergy Power CBA Holding Ltd. (a credit of $13,755), Entergy
Operations Services Inc. ($156,397), Entergy Power Operations
Corp. ($625,988), Entergy Richmond Power Corp. ($8,061) and
Entergy Nuclear, Inc. ($415,244), 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 $15,630 for services rendered during this quarter.
IV. 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.
V. Formation and Capitalization of O&M Subsidiaries
During the quarter, no amounts were expended to form any O&M
Subsidiaries pursuant to the Commission's order dated June 30,
1995.
VI. Nature and Extent of O&M Services Provided.
During the quarter, Enterprises' wholly owned subsidiary,
Entergy Nuclear, Inc. (ENI), provided nuclear O&M services to
Maine Yankee Atomic Power Company that included
(i) assisting Maine Yankee in developing and implementing a
restart readiness plan;
(ii) supporting, planning, scheduling and implementing the
1997 refueling outage;
(iii) other similiar projects related to the Maine Yankee plant
operations.
On August 6, 1997, the board of directors of Maine Yankee announced
the permanent closure of the nuclear plant based on economic concerns
and uncertainty about the oparation of the plant. Entergy
Nuclear will continue to provide management services under its short
term contract to prepare for decommissioning. The contract
expires on September 30, 1997, but may be extended by Maine
Yankee through March 31, 1998. ENI was paid a fixed monthly fee
for providing these services and was reimbursed its actual expenses
for labor and related charges at cost for the services provided.
The total charges to Maine Yankee for services in the second quarter
were $2,442,485, consisting of a market based fee and reimbursable
expenses.
In addition, during the quarter, Enterprises' wholly owned
subsidiary, Entergy Operations Services, Inc. (EOSI), provided
professional advice and technical expertise to the City of Austin
(the "City") concerning the management and operation of certain
coal generating units (at the Fayette Power Project) and nuclear
power generating units (at the South Texas Project) that are
partially owned by the City. Such services principally involved
review and evaluation of the performance of the subject power
plants to assist the City in performing oversight with respect to
its ownership interest. Total charges for services rendered by
EOSI to the City during this period were $8,481. This amount was
billed at market prices in accordance with a price schedule that
was the result of competitive bidding.
During the quarter, $428,618 was billed to Liberty Power by
Entergy Power Operations Pakistan, LDC. for providing technical
expertise and construction oversite services; such charges to
Liberty Power are market based.
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.
VII. Financing, Amortization and Financial Statements
During the three months ended June 30, 1997:
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 six month period ended
June 30, 1997 are included as Exhibit 1.
<PAGE>
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 14th day of August, 1997.
ENTERGY CORPORATION
By: /s/William J. Regan
William J. Regan
Vice President & Treasurer
ENTERGY ENTERPRISES, INC.
By:/s/Stephen Refsell
Stephen Refsell
Asst. Secretary
_______________________________
<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 JUNE 30, 1997
(UNAUDITED)
<TABLE>
ASSETS
<S> <C>
PROPERTY
Furniture and Equipment $ 5,607,719.72
Intangible Assets 11,761.16
---------------
Total Property 5,619,480.88
---------------
INVESTMENTS
Investment in FPN 0.00
Investment in Entergy IS, Inc. 69,850,743.03
Investment in EOSI 2,674,100.63
Investment in ENI 3,861,336.67
--------------
76,386,180.33
--------------
CURRENT & ACCRUED ASSETS
Cash 6,250,589.00
Working Funds/Travel Advances 423,416.40
Special Deposits 142,570.39
Temporary Cash Investments 6,636,295.17
Accounts Receivable 23,317.44
Accounts Receivable - Associated Companies 9,466,449.39
Accounts Receivable - Customer Service 720.59
Accrued Interest 5,833.33
--------------
Total Current and Accrued Assets 22,949,191.71
--------------
DEFERRED DEBITS
Accumulated Deferred Income Tax-Fed & State 9,043,477.92
Miscellaneous Deferred Debits (2,738,977.17)
---------------
Total Deferred Debits 6,304,500.75
---------------
Total Assets $111,259,353.67
===============
These are interim financial statements prepared without notes.
</TABLE>
<PAGE>
<TABLE>
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 1997
(UNAUDITED)
CAPITAL
<S> <C>
Common Stock $ 57,400,000.00
Miscellaneous Paid-in Capital 153,000,000.00
Retained Earnings (119,369,065.50)
---------------
Total Capital 91,030,934.50
---------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 5,021,530.42
Accounts Payable to Associated Companies 3,784,691.21
Taxes Accrued 1,307,474.04
Tax Collections Payable 210,987.31
Miscellaneous Current & Accrued Liabilities 4,889,332.52
--------------
Total Current & Accrued Liabilities 15,214,015.50
--------------
LONG TERM LIABILITIES
Notes Payable - Entergy Corp. 500,000.00
Accum. Misc. Operating Provision 1,000,000.00
--------------
Total Current & Accrued Liabilities 1,500,000.00
--------------
DEFERRED CREDITS
Other Deferred Credits 3,514,403.67
--------------
Total Deferred Credits 3,514,403.67
--------------
Total Liabilities 20,228,419.17
--------------
Total Capital & Liabilities $111,259,353.67
===============
These are interim financial statements prepared without notes.
</TABLE>
<PAGE>
<TABLE>
ENTERGY ENTERPRIS, INC.
UNCONSOLIDATED INCOME STATEMENT
SIX MONTHS ENDED JUNE 30, 1997
(UNAUDITED)
REVENUE
<S> <C>
Services Rendered Non-Associates $ 24,491.60
Services Rendered Associates 20,019,622.56
Equity in Earnings of Subsidiaries (7,062,707.52)
Interest Income 102,635.25
Dividend Income 22,583.78
---------------
Total Revenue 13,106,625.67
---------------
EXPENSES
Salaries, Wages and Benefits 11,465,470.34
Outside Services 6,761,097.42
Selling and Marketing Expenses 2,223,490.70
Rent 1,390,135.35
Administrative and General 4,749,536.53
Active Development Credit (2,349,034.12)
Insurance 4,736.00
---------------
Total Administrative and General Expense 24,245,432.22
Taxes Other Than Income 298,568.60
Depreciation and Amortization 861,191.18
Amortization of EIS Organization Costs 12,613.61
Miscellaneous Expenses 15,442.41
---------------
Total Expenses 25,433,248.02
---------------
Income (Loss) Before Income Taxes (12,326,622.35)
Income Taxes - Federal (1,600,848.92)
Income Taxes - State (Benefit) (317,968.54)
Provision for Deferred Income Taxes - Federal 26,195.37
Provision for Deferred Income Taxes - State 5,203.05
---------------
Net Income (Loss) (10,439,203.31)
================
These are interim financial statements prepared without notes.
</TABLE>
