UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
. . . . . . . . . . . . . . . . . . . . . . . . .. .
.
In the Matter of .
.
ARKANSAS POWER & LIGHT COMPANY .
LOUISIANA POWER & LIGHT COMPANY .
MISSISSIPPI POWER & LIGHT COMPANY .
NEW ORLEANS PUBLIC SERVICE INC. .
.
File No. 70-5015 .
________________ . CERTIFICATE
. PURSUANT TO
In the Matter of . RULE 24
.
SYSTEM FUELS, INC. .
SYSTEM ENERGY RESOURCES, INC. .
ARKANSAS POWER & LIGHT COMPANY .
LOUISIANA POWER & LIGHT COMPANY .
MISSISSIPPI POWER & LIGHT COMPANY .
NEW ORLEANS PUBLIC SERVICE INC. .
.
File No. 70-5889 .
File No. 70-7574 .
File No. 70-7668 .
.
________________ .
.
In the Matter of .
.
SYSTEM FUELS, INC. .
ENTERGY CORPORATION .
.
File No. 70-8331 .
.
(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, modified by request in the application(s) - declaration(s)
referenced above, this is to certify that the following
transactions were carried out and borrowings made, during the
quarter ended March 31, 1995, pursuant to System Fuels, Inc.'s
(SFI) function as a supplier of fuel for the Entergy Corporation
Operating Companies (System) in accordance with the terms and
conditions of and for the purposes represented in the
application(s) - declaration(s), as amended, and pursuant to the
Orders of the SEC, indicated below:
70-5015 December 17, 1971 ................................... I
70-5889 April 28, 1978 ...................................... I
70-7574 January 31, 1989 ................................... II
70-7668 September 27, 1989 ................................. III
70-8331 March 16, 1994 ..................................... IV
<PAGE>
I. File No. 70-5015 and File No. 70-5889 - 1995 Fuel Supply Programs
Expenditures for SFI's fuel program for 1995 during the 1st quarter
are indicated below:
Net Expenditures
During
1st Qtr
(In Thousands)
1995 Fuel Supply Program:
1. Gas and Oil Development and Production .............. $ 1
2. Nuclear Fuel Procurement ............................ (3,139)
3. Fuel Oil Program .................................... (167)
--------
Total Expenditures ......................................... (3,305)
--------
Less funds derived through amortization and
depreciation charges:
Amortization of Gas and Oil Development and
Production Costs ..................................... (410)
Depreciation and other amortization ..................... (142)
--------
Total depreciation and amortization ........................ (552)
--------
Net Expenditures ........................................... (3,857)
(Increase) Decrease in:
Outside financing ....................................... 8,000
System Money Pool borrowings ............................ 633
Parent Companies borrowings ............................. 0
--------
Total (increase) decrease in borrowings .................... 8,633
--------
(Increase) Decrease in working capital .....................$ (4,776)
========
1. Gas and Oil Development and Production
Net Expenditures
During
1st Qtr
(In Thousands)
Gas and Oil Development and Production .................. $ 1
========
a) During the quarter, there was no drilling activity
b) SFI produced, during the quarter, 385,400 MCF of natural gas and
14,400 barrels of oil from its Gas and Oil Development and Production
Program (Program) which were sold to non-System parties.
During the 1st quarter of 1995, all of SFI's natural gas production
was sold to non-System parties. This condition is expected to
continue indefinitely. As a result, SFI's expenditures in the Program
are being limited to amounts required to protect its existing
investments in the properties. No investments in new leases are
being made at this time.
During this quarter, SFI recorded net excess amortization of $409,000,
which results in accumulated excess amortization of $449,000 at
this period's end.
c) Calculation of net proceeds(amortization) from sales to non-System
parties from the Program used to amortize the investment in the Program:
Net Expenditures
During
1st Qtr
(In Thousands)
Sales to non-System parties:
Natural Gas ....................................... $ 591
Condensate ........................................ 43
Crude Oil ......................................... 191
--------
Total .............................................. 825
Miscellaneous income from non-System parties........ 67
--------
Total .............................................. 892
General and administrative expense ................. (71)
Operating expense .................................. (184)
Interest expense ................................... (5)
Amortization adjustment ............................ (222)
--------
Net proceeds ....................................... $ 410
========
2. Nuclear Fuel Procurement (See Item III)
Net Expenditures
During
1st Qtr
(In Thousands)
Nuclear Fuel Procurement ................................ $ (3,139)
========
Net Expenditures
During
1st Qtr
(In Thousands)
Activities during the period:
Expenditures for nuclear materials and processing
services .......................................... $ 7,752
General and administrative expense ................... 36
Interest expense ..................................... 709
--------
Total ................................................ 8,497
--------
Sales of nuclear materials and processing
services to System companies ...................... (11,636)
--------
Net effect on inventory ................................ $ (3,139)
========
During the quarter, SFI's purchases totaled $7,752,000
for Nuclear materials and services for use in 1995.
During the quarter, SFI had sales of Nuclear materials
and services to System Energy Resources, Inc., totaling
$11.6 million, for use in its Grand Gulf nuclear unit .
3. Fuel Oil Program (See Item II)
Net Expenditures
During
1st Qtr
(In Thousands)
Fuel Oil Inventory ...................................... $ (167)
========
a) Fuel Oil Inventory:
Book
Inventory as of: Barrels Value
(In Thousands)
December 31, 1994 ............................ 1,759 $ 28,526
March 31, 1995 ............................... 1,757 $ 28,359
During 1st Qtr.
Barrels Cost
Sales price per barrel to System companies
excluding period cost:
#2 Fuel Oil ............................... 18,147 $ 23.54
#6 Fuel Oil ............................... 4,681 $ 11.54
During this quarter, SFI and Marathon Oil Company had no discussions
regarding the continuation of suspension of the fuel oil deliveries
under a supply contract with Marathon dated April 15, 1982. As
previously reported, SFI filed litigation in December, 1994. A trial
date has been set for Monday, November 27, 1995. Other than Marathon,
SFI has no long term contracts for fuel oil.
4. Other Items:
a) As of March 31, 1995, SFI's outstanding debt and Parent Companies
investment consisted of:
(In Thousands)
Parent Companies:
Common stock .............................. $ 20
Notes payable ............................. 34,000
--------
Total .................................. 34,020
--------
System Money Pool ............................ 11,957
--------
Outside Financing:
Bank borrowings ........................... 15,000
--------
Total ........................................ $ 60,977
========
b) As of January 1, 1987, SFI's employees were transferred to Entergy
Services, Inc. (Entergy Services) where some of them continue to
operate the continuing activities of SFI. For the 1st quarter of
1995, SFI was billed by Entergy Services, Inc. the following amounts
for services performed for SFI that were previously performed by
SFI employees. SFI also reimbursed Entergy Services, at cost, for
other services received (financial, legal, administrative and other
activities).
Total
During
Jan Feb Mar 1st Qtr
Cost of services charged to
Service Requests established
to track cost of functions
previously performed by SFI
personnel:
Direct Cost:
Labor and related cost $ 7,566 $ 33,435 $ 31,533 $ 72,534
Other direct cost ..... 5,876 10,595 10,740 27,211
Indirect cost ............ 3,982 7,952 7,786 19,720
-------- -------- -------- --------
Total .............. 17,424 51,982 50,059 119,465
-------- -------- -------- --------
Cost of services charged to
Service Requests not related
to transfer of SFI personnel. 100,986 129,419 120,007 271,694
-------- -------- -------- --------
Total cost of services
performed by Entergy
Services .................... $118,410 $181,401 $170,066 $469,877
======== ======== ======== ========
Amounts billed to Operating
Companies for the Fuel Oil
Program * ................... $ 83,863 $137,988 $121,867 $343,718
Charged to Nuclear Fuel
Procurement ................. 5,581 5,835 6,180 17,596
Charged to Gas and Oil
Development and Production .. 28,966 37,578 42,019 108,563
-------- -------- -------- --------
Total .................... $118,410 $181,401 $170,066 $469,877
======== ======== ======== ========
* Charged to the Fuel Oil Program as a component of period costs.
For the 1st quarter of 1995 Fuel Oil Program period costs were
allocated 6% to Arkansas Power & Light Company, 61% to Louisiana
Power & Light Company, 23% to Mississippi Power & Light Company
and 10% to New Orleans Public Service Inc.
c) As previously reported, the System's fuels planning and procurement
administration was reorganized during 1988, redefining the fuels
management roles and placing the responsibility for most fuel
procurement decisions with Entergy Corporation System Executives.
SFI, utilizing Entergy Services personnel, continues to be
responsible for gas and oil production, financing nuclear fuel
inventory and fuel oil inventory and facilities, and accounting
functions related to these continuing activities.
II. File No 70-7574 Bank of America Agreement (B of A)
During the quarter, SFI did repay $8.0 million of loans under this
financing agreement. Commitment fees of $16,166 were incurred
on the unused portion of the agreement. The average outstanding
principal balance, during the quarter, was $2.8 million, and interest
cost was $43,917.
As of March 31, 1995, the sum of the Aggregate Borrowing Base of
Eligible Fuel Oil Inventory and Receivable was $10,269,000 and there
were no borrowings outstanding under the B of A agreement.
III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement
(Yasuda)
During the quarter, SFI did not borrow or repay any loans under this
financing agreement. Commitment fees of $13,315 were incurred on the
unused portion of the agreement. The average outstanding principal
balance was $15 million and interest cost was $265,599.
As previously reported, the Yasuda credit agreement was amended,
pursuant to SEC authorization (See HCAR No. 25634, dated September 17,
1992) to increase the commitment fees and margins payable on certain
loans and to extend the termination date of the agreement to September
30, 1995. A copy of the amended credit agreement was filed.
As of March 31, 1995, the book value of the nuclear fuel was
$34,151,331 and there was $15 million in borrowings outstanding under
the Yasuda agreement.
IV. File No 70-8331 Entergy Corporation Revolving Credit Agreement
(Entergy)
Pursuant to the Order issued on March 16, 1994 (Release 35-26006),
SFI entered into a loan agreement with Entergy Corporation on March
21, 1994. The agreement allows SFI to borrow and reborrow from
Entergy Corporation amount not to exceed $30,000,000 at any one time.
This agreement terminates on December 31, 1996.
During the quarter ended March 31, 1995, SFI did not borrow under
this agreement.
<PAGE>
IN WITNESS WHEREOF, SFI has caused this certificate to be executed as
of the 1st of May, 1995.
ARKANSAS POWER & LIGHT COMPANY
LOUISIANA POWER & LIGHT COMPANY
MISSISSIPPI POWER & LIGHT COMPANY
NEW ORLEANS PUBLIC SERVICE INC.
SYSTEM ENERGY RESOURCES, INC.
ENTERGY CORPORATION
SYSTEM FUELS, INC.
BY: /s/ Gerald D. McInvale
Gerald D. McInvale
Senior Vice President and
Chief Financial Officer
