UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
. . . . . . . . . . . . . . . . . . . . . . . . . .
.
In the Matter of .
.
ENTERGY ARKANSAS, INC. .
ENTERGY LOUISIANA, INC. .
ENTERGY MISSISSIPPI, INC. .
ENTERGY NEW ORLEANS, INC. .
.
File No. 70-5015 .
________________ CERTIFICATE
PURSUANT TO
In the Matter of RULE 24
.
SYSTEM FUELS, INC. .
SYSTEM ENERGY RESOURCES, INC. .
ENTERGY ARKANSAS, INC. .
ENTERGY LOUISIANA, INC. .
ENTERGY MISSISSIPPI, INC. .
ENTERGY NEW ORLEANS, 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
third quarter ended September 30, 1999, 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 - 1999 Fuel Supply
Programs
Expenditures for SFI's fuel program for 1999 during the 3rd
quarter are indicated below:
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
1999 Fuel Supply Program:
1. Gas and Oil Development
and Production 0 (183)
2. Nuclear Fuel Procurement 8,392 70,841
3. Fuel Oil Program (9,702) (5,650)
------- ---------
TOTAL EXPENDITURES (1,310) 65,008
------- ---------
Less funds derived through
amortization & depreciation
Charges
Amortization of Gas & Oil
Development & Production Costs (825) (648)
Depreciation & Other
Amortization (38) (134)
------- ---------
TOTAL depreciation & amortization (863) (782)
------- ---------
Net Expenditures (2,173) 64,226
(Increase) decrease in:
Outside financing -
System Money Pool borrowings (38,060) 22,226
------- ---------
TOTAL (increase)decrease
in borrowings (38,060) 22,226
------- ---------
Increase (decrease) in working
Capital $ 39 $ (87)
======= =========
1. Gas and Oil Development and
Production
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
Gas and Oil Development
and Production $ (4) $ (183)
==== =========
Effective July 1, 1996, SFI sold its interest in the
properties associated with its Gas and Oil Development and
Production Program (the "program").
During this quarter, SFI had insignificant expenditures
relative to the continuing shutdown of this operation. As
of September 30, 1999, accumulated net proceeds of
approximately $22,226 are retained at SFI for the
continuing shutdown activities.
Calculation of the net expenditures (proceeds) from the
continuing shutdown activities of the Program, is:
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
Sales to non-System parties:
Natural gas 0 (1)
Condensate -
Crude oil -
------ -------
TOTAL 0 0
Miscellaneous income (including -
sale of assets)
------ -------
TOTAL 0 (1)
General and administrative
expense (1) (3)
Operating expense 0 0
Interest expense 0 0
Amortization adjustment 0 183
------ -------
Net proceeds $ (825) $(2,449)
====== =======
2. Nuclear Fuel Procurement
(See Item III)
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
Nuclear Fuel Procurement $ 8 $ 71
===== ======
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
Activities during the period:
Expenditures for nuclear
materials and processing
services $ 7,825 $ 21,997
General and administrative
expense 106 291
Interest expense 432 1,437
-------- --------
TOTAL 8,361 23,726
-------- --------
Sales of nuclear materials and
processing services to
System companies (30) 47,115
-------- --------
Net effect on inventory $119,105 $119,105
======== ========
3. Fuel Oil Program
(See Item II)
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
Fuel Oil Inventory $(9,702) $(5,650)
======= =======
a) Fuel Oil Inventory:
Barrels Book Value
Inventory as of: (In Thousands)
September 30, 1999 1,662 35,429
June 30, 1998 2,616 45,131
March 31, 1998 1,649 32,302
December 31, 1997 2,613 33,412
September 30, 1997 2,017 29,650
June 30, 1997 2,406 31,647
During 3rd Quarter
(In Thousands)
Barrels Value
Sales price per barrel
to System companies
excluding period cost:
#2 Fuel Oil 91 17.41
#6 Fuel Oil 1,140 10.55
SFI has a fuel oil contract with Marathon Oil Company dated April
15, 1982 that was originally scheduled to terminate on December
31, 1996. On January 1, 1994 Marathon breached the contract by
refusing to deliver product and on December 29, 1994 SFI filed
suit against Marathon in federal court in New Orleans, Louisiana.
During the first quarter 1996, SFI and Marathon reached a
negotiated settlement to the dispute, and Marathon resumed
delivery. However, a different grade of fuel oil was substituted
for the fuel oil originally required to be delivered under the
contract. Deliveries of the substitute fuel oil began on March 1,
1996 and will continue through February 28, 1999.
4. Other Items:
a) As of September 30,1999, SFI's outstanding debt and Parent
Companies investment consisted of:
Parent Companies: In Thousands
Common Stock 20
Notes payable 34,000
-------
TOTAL 34,020
System Money Pool 33,628
Banks 0
-------
TOTAL $67,648
=======
b) As of January 1, 1987, SFI's employees were transferred to
Entergy Services, Inc. (Entergy Services). Entergy
Services bills SFI for labor associated with the operation
of continuing activities for SFI and other services
provided to SFI (financial, legal, administrative, and
other activities). For the 3rd quarter of 1999, SFI was
billed by Entergy Services for the following amounts:
Total
July August September 3rd Qtr
Cost of service
charged to
Service Requests
established to
track cost of functions
previously performed by
SFI personnel:
Direct Cost:
Labor and related
cost 12,411 3,484 4,332 20,227
Other direct cost 3,352 1,404 1,683 6,439
Indirect Cost 2,888 810 1,009 4,706
-----------------------------------------
TOTAL 18,651 5,698 7,024 31,371
-----------------------------------------
Cost of services
charged to Service
Requests not related
to transfer of SFI
personnel: 116,837 98,922 126,379 342,138
-----------------------------------------
Total cost of services
performed by Entergy
Services $135,488 $104,620 $133,403 $ 373,511
=========================================
Amounts billed to
Operating Companies for
the Fuel Oil Program* $ 87,114 $ 76,683 $103,913 $ 267,710
Charged to Nuclear Fuel
Procurement 48,374 27,937 29,490 105,800
-----------------------------------------
TOTAL $135,488 $104,620 $133,403 $ 373,512
=========================================
o Charged to the Fuel Oil Program as a component of period
costs. Effective January 1, 1998, Fuel Oil Program period costs
are recorded by plant, to the extent possible, and direct billed
to the operating company that owns the facility where incurred.
Costs which cannot be directly associated with a facility or an
operating company, continue to be allocated as before. For the
3rd quarter of 1999, such Fuel Oil Program period costs were
allocated 10% to ENTERGY ARKANSAS, INC., 53% to ENTERGY
LOUISIANA, INC., 27% to ENTERGY MISSISSIPPI, INC., and 10% to
ENTERGY NEW ORLEANS, 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 shut down, financing
nuclear fuel inventory and fuel oil inventory and facilities, and
accounting functions related to these continuing activities.
On September 2, 1997, SFI filed an Application-Declaration, on
Form U-1, with the SEC, in File No. 70-9103 (the "U-1"). SFI has
requested authorization, among other things, for it to function
as a supplier of transmission and distribution related equipment
and materials for the Entergy Corporation Operating Companies.
Also requested, is for Entergy Gulf States, Inc. to acquire an
ownership interest in SFI and assume a share of the debt
financing for SFI on the same proportionate basis as the other
operating companies. The U-1 is pending, and an amendment is
forthcoming.
II. File No 70-7574 Bank of America Agreement
This financing agreement expired January 31, 1996.
III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement
(Yasuda)
This loan agreement expired September 26, 1997 and was not
renewed nor replaced.
IV. File No 70-8331 Entergy Corporation Revolving Credit
Agreement (Entergy)
As indicated previously, in a filing pursuant to the SEC
order dated November 26, 1996, (Release No. 35-26617) in File No.
70-8899, activity pertaining to this loan agreement will be
reported by Entergy Services, Inc. under File No. 70-8899.
IN WITNESS WHEREOF, SFI has caused this certificate to be
executed as of the 27th of October 1999.
ENTERGY ARKANSAS, INC.
ENTERGY LOUISIANA, INC.
ENTERGY MISSISSIPPI, INC.
ENTERGY NEW ORLEANS, INC.
SYSTEM ENERGY RESOURCES, INC.
ENTERGY CORPORATION
BY: /s/ Nathan E. Langston
Nathan E. Langston
Vice President and
Chief Accounting Officer
SYSTEM FUELS, INC.
BY: /s/ Steven C. McNeal
Steven C. McNeal
Vice President
and Treasurer
