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Previous: SKYLINE FUND, 497J, 1996-05-01 |
Next: FIRST INVESTORS MULTISTATE INSURED TAX FREE FUND, 497J, 1996-05-01 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1995 and Ending December 31, 1995
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
Entergy Services, Inc.
(Exact Name of Reporting Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Date Incorporation:February 11, 1963 If not Incorporated:Date of Organization:
State or Sovereign Power under which Incorporated or Organized Delaware
Location of Principal Executive Offices of Reporting Company
639 Loyola Avenue, New Orleans, Louisiana
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
Mr. Louis E. Buck, Jr. Vice President & Chief Accounting Officer,
(Name) (Title)
P. O. Box 61000, New Orleans, LA. 70116
(Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
Entergy Corporation
<PAGE>
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing.
Rule 94 provides that on or before the first day of May in each
calendar year, each mutual service company and each subsidiary service
company as to which the Commission shall have made a favorable finding
pursuant to Rule 88, and every service company whose application for
approval or declaration pursuant to Rule 88 is pending shall file with the
Commission an annual report on Form U-13-60 and in accordance with the
Instructions for that form.
2. Number of Copies.
Each annual report shall be filed in duplicate. The company should
prepare and retain at least one extra copy for itself in case
correspondence with reference to the report become necessary.
3. Period Covered by Report.
The first report filed by any company shall cover the period from
the date the Uniform System of Accounts was required to be made effective
as to that company under Rules 82 and 93 to the end of that calendar year.
Subsequent reports should cover a calendar year.
4. Report Format.
Reports shall be submitted on the forms prepared by the Commission.
If the space provided on any sheet of such form is inadequate, additional
sheets may be inserted of the same size as a sheet of the form or folded to
each size.
5. Money Amounts Displayed.
All money amounts required to be shown in financial statements may be
expressed in whole dollars, in thousands of dollars or in hundred thousands
of dollars, as appropriate and subject to provisions of Regulation S-X
(SS210.3-01(b)).
6. Deficits Displayed.
Deficits and other like entries shall be indicated by the use of
either brackets or a parenthesis with corresponding reference in footnotes.
(Regulation S-X, SS210.3-01(c))
7. Major Amendments or Corrections.
Any company desiring to amend or correct a major omission or error
in a report after it has been filed with the Commission shall submit an
amended report including only those pages, schedules, and entries that are
to be amended or corrected. A cover letter shall be submitted requesting
the Commission to incorporate the amended report changes and shall be
signed by a duly authorized officer of the company.
8. Definitions.
Definitions contained in Instruction 01-8 to the Uniform System of
Accounts for Mutual Service Companies and Subsidiary Service Companies,
Public Utility Holding Company Act of 1935, as amended February 2, 1979
shall be applicable to words or terms used specifically within this Form U-
13-60.
9. Organization Chart.
The service company shall submit with each annual report a copy of
its current organization chart.
10. Methods of Allocation.
The service company shall submit with each annual report a listing
of the currently effective methods of allocation being used by the service
company and on file with the Securities and Exchange Commission pursuant to
the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed.
The service company shall submit with each annual report a copy of
the annual statement supplied to each associate company in support of the
amount of compensation for use of capital billed during the calendar year.
<PAGE>
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account Number Number
Comparative Balance Sheet Schedule I 5
Service Company Property Schedule II 7
Accumulated Provision for Depreciation and Amortization Schedule III 8
of Service Company Property.
Investments Schedule IV 9
Accounts Receivable from Associate Companies Schedule V 9
Fuel Stock Expenses Undistributed Schedule VI 10
Stores Expense Undistributed Schedule VII 10
Miscellaneous Current and Accrued Assets Schedule VIII 11
Miscellaneous Deferred Debits. Schedule IX 11
Research, Development, or Demonstration Expenditures Schedule X 11
Proprietary Capital Schedule XI 12
Long-Term Debt Schedule XII 13
Current and Accrued Liabilities Schedule XIII 14
Notes to Financial Statements Schedule XIV 14
Comparative Income Statement Schedule XV 15
Analysis of Billing - Associate Companies Account 457 16
Analysis of Billing - Nonassociate Companies Account 458 17
Analysis of Charges for Service - Associate and Schedule XVI 18
Nonassociate Companies
Schedule of Expense of Department or Service Function Schedule XVII 19-20
Departmental Analysis of Salaries Account 920 21
Outside Services Employed Account 923 21
Employee Pensions and Benefits Account 926 22
General Advertising Expenses. Account 930.1 22
Miscellaneous General Expenses. Account 930.2 23
Rents Account 931 23
Taxes Other Than Income Taxes Account 408 24
Donations Account 426.1 24
Other Deductions Account 426.5 25
Notes to Statement of Income Schedule XVIII 25
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
Organization Chart 26
Methods of Allocation 26
Annual Statement of Compensation for Use of Capital Billed 26
Appendix
Information in compliance with Item 4 of SEC letter dated 26 - E
December 29, 1986
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
<TABLE>
<CAPTION>
Schedule I - Comparative Balance Sheet
(In Thousands)
Give balance sheet of the Company as of December 31 of the
current and prior year.
<S> <C> <C> <C>
Account Assets and Other Debits As of December 31
- - ------- ----------------------------------------------------------- -------------------
Current Prior
-------- --------
Service Company Property
101 Service company property (Schedule II) $145,686 $126,195
107 Construction work in progress (Schedule II) 14,181 20,496
-------- --------
Total Property 159,867 146,691
-------- --------
108 Less accumulated provision for depreciation and amortization of service
company property (Schedule III) 77,786 58,105
-------- --------
Net Service Company Property 82,081 88,586
-------- --------
Investments
123 Investments in associate companies (Schedule IV)
124 Other Investments (Schedule IV)
-------- --------
Total Investments
-------- --------
Current and Accrued Assets
131 Cash 10,396 4,108
134 Special deposits 259 1,593
135 Working funds 62 139
136 Temporary cash investments (Schedule IV) 0 58,508
141 Notes receivable 0 12
143 Accounts receivable 10,024 6,202
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate companies (Schedule V) 43,465 36,034
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies 252 252
163 Stores expense undistributed (Schedule VII)
165 Prepayments 3,807 342
174 Miscellaneous current and accrued assets (Schedule VIII) 98
-------- --------
Total Current and Accrued Assets 68,265 107,288
-------- --------
Deferred Debits
181 Unamortized debt expense
184 Clearing accounts 0 136
186 Miscellaneous deferred debits (Schedule IX) 1,616 3,531
188 Research, development, or demonstration expenditures (Schedule X)
190 Accumulated deferred income taxes 1,275 1,430
-------- --------
Total Deferred Debits 2,891 5,097
-------- --------
TOTAL ASSETS AND OTHER DEBITS $153,237 $200,971
========= ========
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
<TABLE>
<CAPTION>
Schedule I - Comparative Balance Sheet
(In Thousands)
<S> <C> <C> <C>
Account Account Liabilities and Proprietary Capital As of December 31
- - -------- ---------------------------------------------- ---------------------
Current Prior
-------- --------
Proprietary Capital
201 Common stock issued (Schedule XI) $20 $20
211 Miscellaneous paid-in-capital (Schedule XI)
215 Appropriated retained earnings (Schedule XI)
216 Unappropriated retained earnings (Schedule XI)
-------- --------
Total Proprietary Capital 20 20
-------- --------
Long-Term Debt
223 Advances from associate companies (Schedule XII)
224 Other long-term debt (Schedule XII) 0 1,619
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt-debit
-------- --------
Total Long-Term Debt 0 1,619
-------- --------
Current and Accrued Liabilities
231 Notes payable 0 65,000
232 Accounts payable 66,737 61,303
233 Notes payable to associate companies (Schedule XIII) 10,545
234 Accounts payable to associate companies (Schedule XIII) 27,529 26,799
236 Taxes accrued 279 789
237 Interest accrued
238 Dividends declared
241 Tax collections payable 548 1,347
242 Miscellaneous current and accrued liabilities (Schedule XIII) 5,910 5,674
-------- --------
Total Current and Accrued Liabilities 111,548 160,912
-------- --------
Deferred Credits
253 Other deferred credits (See Note 9) 40,637 37,666
255 Accumulated deferred investment tax credits 1,032 754
-------- --------
Total Deferred Credits 41,669 38,420
-------- --------
282 Accumulated Deferred Income Taxes
-------- --------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $153,237 $200,971
======== ========
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Schedule II - Service Company Property
(In Thousands)
<S> <C> <C> <C> <C> <C> <C>
Balance at Retirements Balance
Beginning or Other (1) at Close
Description of Year Additions Sales Changes of Year
- - --------------------------------------------------------------------------------------
Service Company Property
Account
301 Organization
303 Miscellaneous $5,814 $21 $5,835
Intangible Plant
304 Land and Land Rights 1,705 2 1,707
305 Structures and 8,719 600 9,319
Improvements
306 Leasehold 4,948 601 5,549
Improvements
307 Equipment (2) 80,676 13,316 (2) 93,990
308 Office Furniture and
Equipment 14,744 4,951 2 19,697
309 Automobiles, Other
Vehicles
and Related Garage 190 190
Equipment
310 Aircraft and Airport 9,399 9,399
Equipment
311 Other Service
Company Property (3)
---------- ------- ------- -------- --------
SUB-TOTAL 126,195 19,491 145,686
---------- ------- ------- -------- --------
107 Construction Work in 20,496 13,176 19,491 14,181
Progress (4) ---------- ------- ------- -------- --------
TOTAL $146,691 $32,667 $19,491 $0 $159,867
========== ======= ======= ======== ========
</TABLE>
(1) Provide an explanation of those changes considered
material: Reclassifications of property.
(2) Subaccounts are required for each class of equipment
owned. The service company shall provide a listing by
subaccount of equipment additions during the year and the
balance at the close of the year:
<TABLE>
<CAPTION>
<S> <C> <C>
Balance at
Subaccount Description Additions Close of Year
- - --------------------------------------------------------- ---------- -------------
Microwave Equipment
General Office $2,082 $2,595
Computer Center $2,986
System Operations $2,150
Center
EDP Equipment
General Office 10,407 36,715
Computer Center 827 31,340
System Operations 18,204
Center --------- -----------
TOTAL $13,316 $93,990
========= ===========
</TABLE>
(3) Describe other service company property:
(4) Describe construction work in progress: Primarily WAN infrastructure
improvements and property to be transferred to plant.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Schedule III - Accumulated Provision for Depreciation and
Amortization of Service Company Property
(In Thousands)
<S> <C> <C> <C> <C> <C> <C>
Balance at Additions Other Balance
Beginning Charged to Changes Add at Close
Account Description of Year Account 403 Retirements (Deduct) (1) of Year
- - ------- -------------------------- ----------- ----------- ------------- ------------ ----------
301 Organization
303 Miscellaneous Intangible $3,133 $1,344 $4,477
Plant
304 Land and Land Rights
305 Structures and Improvements 204 282 486
306 Leasehold Improvements 1,850 416 2,266
307 Equipment 39,926 12,317 $2,312 54,555
308 Office Furniture and 10,520 2,050 12,570
Fixtures
309 Automobiles, Other Vehicles
and Related Garage Equipment 122 20 142
310 Aircraft and Airport 2,350 940 3,290
311 Other Service Company
Property
------- ------- ------ -------
TOTAL $58,105 $17,369 $2,312 $77,786
======= ======= ====== =======
</TABLE>
(1) Provide an explanation of those changes considered material:
Other charges for amortization of leased property not
charged to Acccount 403 (see Note 5).
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule IV - Investments
(In Thousands)
Instructions:
Complete the following schedule concerning investments.
Under Account 124 "Other Investments," state each investment
separately, with description, including, the name of issuing
company, number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each
investment separately.
Balance at Balance at
Description Beginning of Close of Year
Year
Account 123 - Investment in Associate None None
Companies
Account 124 - Other Investments None None
Account 136 - Temporary Cash Investments- 58,508 None
Money Pool ( See Note 3) ------ -------
TOTAL - 0 - - 0 -
======= =======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule V - Accounts Receivable from Associate Companies
(In Thousands)
Instructions:
Complete the following schedule listing accounts receivable
from each associate company. Where the service company has
provided accommodation or convenience payments for associate
companies, a separate listing of total payments for each
associate company by subaccount should be provided.
Balance at Balance at
Description Beginning of Close of Year
Year
Account 146 - Accounts Receivable from
Associate Companies
See page 9-A $36,034 $43,465
------- -------
TOTAL $36,034 $43,465
======= =======
Total
Payments
Analysis of Convenience or Accommodation Payments:
See page 9-A $6,790
------
TOTAL PAYMENTS $6,790
======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule V - Accounts Receivable from Associate Companies
(In Thousands)
Balance at Balance at
Description Beginning of Year Close of Year
----------------- -------------
Account 146 - Accounts Receivable from
Associate Companies
Arkansas Power & Light Company $1,641 $2,424
Louisiana Power & Light Company 13,053 18,947
Mississippi Power & Light Company (132) 1,263
New Orleans Public Service Inc. 512 2,137
Entergy Corporation 1,265 683
Entergy Operations, Inc. 5,259 3,159
Entergy Power, Inc. 253 275
System Fuels, Inc. 108 77
Entergy Enterprises, Inc. 338 514
Gulf States Utilities, Inc. 9,924 13,986
Money Pool 3,813
------- -------
TOTAL $36,034 $43,465
======= =======
Bulk Power Other
Payments Payments
----------- ----------
Analysis of Convenience or
Accommodation Payments:
Arkansas Power & Light Company ($188,770) $1,185
Louisiana Power & Light Company 165,715 760
Mississippi Power & Light Company (22,674) 635
New Orleans Public Service Inc. 37,990 163
Entergy Corporation 675
Entergy Operations, Inc. 2,391
Entergy Power, Inc. 3,408 9
System Fuels, Inc. 97
Entergy Enterprises, Inc. 347
Gulf States Utilities, Inc. 2,902 528
Nonassociated Companies 1,429
----- -----
$0 $6,790
===== ======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule VI - Fuel Stock Expenses Undistributed
(In Thousands)
Instructions:
Report the amount of labor and expenses incurred with
respect to fuel stock expenses during the year and indicate
amount attributable to each associate company. Under the
section headed "Summary" listed below give an overall report
of the fuel functions performed by the service company.
Description Labor Expenses Total
- - ---------------------------------- --------- ----------- --------
Account 152 - Fuel Stock Expenses None None None
Undistributed
----- ----- -----
TOTAL - 0 - - 0 - - 0 -
===== ===== =====
Summary:
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule VII - Stores Expense Undistributed
(In Thousands)
Instructions:
Report the amount of labor and expenses incurred with
respect to stores expense during the year and indicate
amount attributable to each associate company.
Description Labor Expenses Total
- - --------------------------------- ------ --------- --------
Account 163 - Stores Expense None None None
Undistributed
----- ----- -----
TOTAL - 0 - - 0 - - 0 -
===== ===== =====
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule VIII - Miscellaneous Current and Accrued Assets
(In Thousands)
Instructions:
Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each
group.
Balance at Balance at
Description Beginning of Close of
Year Year
- - ------------------------------------------- ------------- -----------
Account 174 - Miscellaneous Current and
Accrued Assets
See page 11 - A $98 $0
---- ----
TOTAL $98 $0
==== ====
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule IX - Miscellaneous Deferred Debits
(In Thousands)
Instructions:
Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items
ineach class.
Balance at Balance at
Description Beginning of Close of
Year Year
- - --------------------------------------------- ------------- ----------
Account 186 - Miscellaneous Deferred
Debits
See page 11-A $3,531 $1,616
------ ------
TOTAL $3,531 $1,616
====== ======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule X - Research, Development or Demonstration
Expenditures
(In Thousands)
Instructions.
Provide a description of each material research,
development, or demonstration project which incurred costs
by the service corporation during the year.
Description Amount
- - --------------------------------------------------- ----------------
Account 188 - Research, Development, or None
Demonstration Expenditures
-----
TOTAL - 0 -
=====
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule VIII - Miscellaneous Current and Accrued Assets
(In Thousands)
Balance at Balance at
Description Beginning of Close of
Year Year
Account 174 - Miscellaneous Current and
Accrued Assets
Unbilled expenses and other receivables $98 $0
---- ----
TOTAL $98 $0
==== ====
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule IX - Miscellaneous Deferred Debits
(In Thousands)
Balance at Balance at
Description Beginning of Close of
Year Year
- - ------------------------------------------------- ------------ ----------
Account 186 - Miscellaneous Deferred
Debits
Noncurrent receivable for Associate $3,362 $1,528
Companies
Deferred ESOP credit 148 148
Other (3) 21 (60)
------ ------
TOTAL $3,531 $1,616
====== ======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Schedule XI - Proprietary Capital
<S> <C> <C> <C> <C> <C>
Number of Par or Stated Outstanding Close of Period
Shares Value per No. of Shares Total Amount
Authorized Share
Account Number Class of Stock
- - ------------------- --------------- ---------- ------------ ------------- -----------------
201 Common Stock
Issued 50,000 $10.00 2,000 $20,000
====== =======
</TABLE>
Instructions:
Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give
rise to the reported amounts.
Description Amount
- - ------------------------------------------------ ---------
Account 211 - Miscellaneous Paid-in Capital None
Account 215 - Appropriated Retained Earnings None
-----
TOTAL - 0 -
=====
<TABLE>
<CAPTION>
Instructions:
Give particulars concerning net income or (loss) during the
year, distinguishing between compensation for the use of
capital owed or net loss remaining from servicing
nonassociates per the General Instructions of the Uniform
System of Accounts. For dividends paid during the year in
cash or otherwise, provide rate percentage, amount of
dividend, date declared and date paid.
<S> <C> <C> <C> <C>
Balance at Net Income Dividends Balance at
Description Beginning of -or (loss) Paid Close
Year of Year
- - ------------------------------------------ ------------- ---------- --------- ----------
Account 216 - Unappropriated None None None None
Retained Earnings
----- ----- ----- -----
TOTAL - 0 - - 0 - - 0 - - 0 -
===== ===== ===== =====
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
<TABLE>
<CAPTION>
Schedule XII - Long-Term Debt
(In Thousands)
Instructions:
Advances from associate companies should be reported
separately for advances on notes, and advances on open
account. Names of associate companies from which advances
were received shall be shown under the class and series of
obligation column. For Account 224 - Other long-term debt
provide the name of creditor company or organization, terms
of the obligation, date of maturity, interest rate, and the
amount authorized and outstanding.
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Terms of
Obligation
Class & Balance at Balance at
Series of Date of Interest Amount Beginning Close
Name of Creditor Obligation Maturity Rate Authorized of Year Additions Deductions(1) of Year
- - ------------------------ ----------- --------- -------- ---------- --------- ---------- ------------- ----------
Account 223 - Advances
from associate companies None None None
Account 224 - Other Long-
Term debt
Lease 6/30/96 11% $17,200 $1,619 - 0 - $1,619 $0
Obligation
(See Note 5)
------ ----- ------ ----
TOTAL $1,619 - 0 - $1,619 $0
====== ===== ====== ====
</TABLE>
(1) Give an explanation of Deductions:
Payment of lease obligation ($1,619) .
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XIII - Current and Accrued Liabilities
(In Thousands)
Instructions:
Provide balance of notes and accounts payable to each
associate company. Give description and amount of
miscellaneous current and accrued liabilities. Items less
than $10,000 may be grouped, showing the number of items in
each group.
Balance at Balance at
Description Beginning of Close of
Year Year
- - --------------------------------------------- -------------- -----------
Account 233 - Notes Payable to
Associate Companies
Money Pool $0 $10,545
---- -------
TOTAL $0 $10,545
==== =======
Account 234 - Accounts Payable to
Associate Companies
See page 14-A $26,799 $27,529
------- -------
TOTAL $26,799 $27,529
======= =======
Account 242 - Miscellaneous Current and
Accrued Liabilities
See page 14-A $5,674 $5,910
------ ------
TOTAL $5,674 $5,910
====== ======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XIV - Notes to Financial Statements
Instructions:
The space below is provided for important notes regarding
the financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes relating
to financial statements shown elsewhere in this report may
be indicated here by reference.
See pages 14 - B thru 14 - H
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XIII - Current and Accrued Liabilities
(In Thousands)
Balance at Balance at
Description Beginning of Close of
Year Year
- - ----------------------------------------------- ----------- ----------
Account 234 - Accounts Payable to
Associate Companies
Arkansas Power & Light Company $17,842 $22,936
Louisiana Power & Light Company 283 2
Mississippi Power & Light Company 2,869 1,051
New Orleans Public Service Inc.
Gulf States Utilities, Inc. 5,360 801
Entergy Corporation 6 2,483
Entergy Operations 215 74
Entergy Power, Inc
Entergy Enterprise, Inc.
System Fuels, Inc.
Money Pool Interest 224 182
------- -------
TOTAL $26,799 $27,529
======= =======
Account 242 - Miscellaneous Current And
Accrued Liabilities
Accrued rent expense $1,030 $1,030
Accrued savings plan expense and withholdings 205 469
Accrued benefit plans expense and withholdings 2,422 1,711
Accrued Severence Pay 1,412 2,431
Accrued Audit Expense (6) 28
Accrued Claims Liability 611 241
------ ------
TOTAL $5,674 $5,910
====== ======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XIV - Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization and System of Accounts
Entergy Services, Inc. (Entergy Services), a wholly owned
subsidiary of Entergy Corporation (Entergy), was authorized
to conduct business as a service company for Entergy and
Subsidiaries (the System) by order of the Securities and
Exchange Commission (SEC) dated March, 1963 and made
permanent March 1965. Entergy Services is organized along
functional lines to accomplish its purpose of providing
management, administrative, and technical services to the
System companies. Such services are priced so that Entergy
Services operates on a break-even basis.
On December 31, 1993, Entergy merged with Gulf States
Utilities Company (Gulf States). As a result of the
merger, Entergy Services began providing services to Gulf
States in 1994 and a number of Gulf States employees became
Entergy Services employees.
The accounts of Entergy Services are maintained in
accordance with the Public Utility Holding Company Act of
1935, as administered by the SEC, which has adopted a system
of accounts consistent with the system of accounts
prescribed by the Federal Energy Regulatory Commission.
B. Use of Estimates in the Preparation of Financial Statements
The preparation of Entergy Services' financial statements, in
conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that
affect reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities as of December 31, 1995 and
1994, and the reported amounts of revenues and expenses during
fiscal years 1995, 1994, and 1993. Adjustments to the reported
amounts of assets and liabilities may be necessary in the future
to the extent that future estimates or actual results are different
from the estimates used in 1995 financial statements.
C. Depreciation and Amortization
Depreciation is computed on a straight-line basis at rates
based on the estimated service lives of the various classes
of property. Amortization of leasehold improvements is
computed on a straight-line basis over the lease term.
D. Income Taxes
Entergy Services joins in the filing of a consolidated
Federal income tax return with the System. The income tax
effects of Entergy Services' taxable income or loss are
allocated to the other System Companies under an intra-
System income tax allocation agreement. Although Entergy
Services is not allocated Federal income taxes, Entergy
Services is allocated the benefits of investment tax
credits.
Investment tax credits are deferred and amortized based upon
the average useful life of the related property, beginning
with the year utilized on the consolidated tax return.
Entergy Services files a consolidated Arkansas state income
tax return with certain other System companies, a combined
Mississippi state income tax return with other System
companies, and a separate company Louisiana state income
tax return.
Effective January 1, 1993, Entergy Services adopted the
Financial Accounting Standards Board (FASB) Statement of
Financial Accounting Standards (SFAS) 109, "Accounting for
Income Taxes."
This new standard requires that deferred income taxes be
recorded for all temporary differences and carryforwards,
and that deferred tax balances be based on enacted tax laws
at tax rates expected to be in effect when the temporary
differences reverse. There was no significant impact from
the adoption of SFAS 109 on the financial statements of
Entergy Services.
Entergy Services' effective income tax rate was 100% in
1995, 1994 and 1993, compared to the current Federal
statutory income tax rate of 35%. The primary reason for
the difference between the effective and statutory income
tax rates is that the Company collects revenue adequate to
fund its income tax expense.
E. Cash and Cash Equivalents
Entergy Services considers all unrestricted highly liquid
debt instrument purchases with an original maturity of
three months or less to be cash equivalents.
F. Fair Value Disclosures
Entergy Services considers the carrying amounts of financial
instruments classified as current assets and liabilities to be
a reasonable estimate of their fair value because of the short
maturity of these instruments. In addition, Entergy Services
does not expect that performance of its obligations will be
required in connection with certain off-balance sheet commitments
and guarantees considered financial instruments. Due to this
factor, and because of the related-party nature of these
commitments and guarantees, determination of fair value is not
considered practicable.
2. INCOME TAXES
Effective January 1, 1993, Entergy Services adopted the Financial
Accounting Standards Board (FASB) Statement of Financial Accounting
Standards (SFAS) 109, "Accounting for Income Taxes." This standard
requires that deferred income taxes be recorded for all temporary
differences and carryforwards, and that deferred tax balances be
based on enacted tax laws at tax rates expected to be in effect when
the temporary differences reverse. There was no significant impact
from the adoption of SFAS 109 on the financial statements of Entergy
Services.
At December 31, 1995 and 1994, Entergy Services had deferred tax
assets totaling $1.3 million and $1.4 million, respectively, consisting
of pension accruals, severance accruals, FASB 106 accruals, and
depreciation differences. Entergy Services also had $1.0 million and
$0.8 million in deferred taxes for unamortized investment tax credits
at December 31, 1995 and 1994, respectively.
Entergy Services' effective income tax rate was 100% in 1995, 1994 and
1993, compared to the current Federal statutory income tax rate of 35%.
The primary reason for the difference between the effective and statutory
income tax rates is that the Company collects revenue adequate to fund
its income tax expense.
3. NOTES PAYABLE
Entergy Services has a line of credit expiring November 30, 1996
with Entergy which was for $90 million through November 30,
1994 and increased to $150 million. This line of credit was
not used during 1995, 1994 or 1993.
Entergy Services had $70 million in unused bank lines of
credit at December 31, 1995 and 1994 which carry commitment fee of
0.125% on the undrawn balance. At December 31, 1994,
Entergy Services had a total of $65 million in notes payable
to a number of regional banks. These notes, which were
guaranteed by Entergy and had an average effective interest
rate of 7.1% at December 31, 1994, were paid in 1995.
Entergy Services participates with certain other System
companies in a System Money Pool (Money Pool) arrangement
whereby those companies with available funds may invest in
the Money Pool while other System companies, except Entergy
Corporation, may borrow on a short-term basis, from the
Money Pool, thereby reducing the System's dependence on
external short-term borrowings. As authorized by the SEC,
the borrowings by Entergy Services from the Money Pool may
not exceed the amount of the unused portion of the line of
credit discussed above.
The borrowings and applicable interest rates under the Money
Pool arrangement were as follows (in thousands):
1995 1994 1993
Average borrowings $ 44,612 $ 52,258 $41,084
Maximum borrowing at month end 66,523 71,239 42,768
Average effective interest rate:
During the year 6.0% 4.0% 3.2%
At end of year 6.0% 6.1% 3.3%
At December 31, 1995, Entergy Services had a $10.5 million
temporary borrowing position in the Money Pool and at
December 31, 1994, Entergy Services had a $62.3 million
temporary investment position in the Money Pool, which was
considered to be a cash equivalent since the maturity is
less than three months.
4. POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS
Pension Plan
Entergy Services has a defined benefit pension plan covering
substantially all of its employees. The pension plan is
noncontributory and provides pension benefits that are based
on employees' credited service and average compensation,
generally during the last five years before retirement.
Entergy Services funds pension costs in accordance with
contribution guidelines established by the Employee
Retirement Income Security Act of 1974, as amended, and the
Internal Revenue Code of 1986, as amended. The assets of
the plan consist primarily of common and preferred stocks,
fixed income securities, interest in a money market fund and
insurance contracts.
Effective January 1, 1995, all Entergy Services employees
were transferred to the Entergy Corporation Retirement Plan
for non-bargaining employees. This new plan has provisions
substantially identical to the previous plan.
Entergy Services' total 1995, 1994, and 1993 allocated
pension cost, including amounts capitalized, included the
following components (in thousands):
1995 1994 1993
Service cost-benefits earned during
the period $ 5,097 $ 5,314 $3,079
Interest cost on the projected
benefit obligation 6,064 5,948 4,229
Actual return on plan assets (13,202) 410 (4,219)
Net amortization and deferral 8,908 (2,504) 1,678
-------- ------- ------
Net pension cost $ 6,867 $ 9,168 $4,767
======== ======= ======
The funded status of the pension plan, with respect to
Entergy Services, at December 31, 1995 and 1994 was as
follows (in thousands):
1995 1994
Actuarial present value of accumulated
pension plan benefits:
Vested $ 57,413 $49,414
Nonvested 900 1,060
-------- -------
Accumulated benefit obligation $ 58,313 $50,474
======== =======
Plan assets at fair value $ 66,011 $49,914
Projected benefit obligation 89,133 75,971
-------- -------
Plan assets less than projected (23,122) (26,057)
benefit obligation
Unrecognized prior service cost 2,887 2,874
Unrecognized transition asset (1,644) (1,811)
Unrecognized net loss (gain) 10,608 15,374
--------- -------
Accrued pension liability $ (11,271) $(9,620)
========= =======
The significant actuarial assumptions used included a
weighted average discount rate of 7.5% for 1995, 8.5% for
1994 and 7.5% for 1993, and a weighted average rate of
increase in future compensation levels of 4.6% for valuing
the projected benefit obligation for 1995, 5.1% for 1994 and
5.6% for 1993. An assumed expected long-term rate of return
on plan assets of 8.5% was used for 1995, 1994 and 1993.
Transition assets are being amortized over the average
remaining service period of active participants.
Entergy Services has adopted the Supplemental Retirement
Plan of Entergy Corporation and Subsidiaries and the Post-
Retirement Plan of Entergy Corporation and Subsidiaries for
certain executive officers. Certain participants in these
plans receive benefits based on a percentage of their
salaries. The actuarially projected obligation for these
plans, which is not included in the pension plan tables
above, was recorded during 1992. These plans are unfunded
and benefits are paid from general Company assets. At
December 31, 1995 and 1994, the recorded liability for these
plans was approximately $16.1 million and $15.7 million,
respectively. The discount rate used in the determination
of these liabilities was 8.25% in 1995 and 1994.
Entergy Services' total recorded pension liability
(including the funded plan covering substantially all
employees and the supplemental unfunded plans described
above) at December 31, 1995 and 1994, was $27.3 million and
$25.3 million, respectively.
Other Postretirement Benefits
Entergy Services also provides certain health care and life
insurance benefits for retired employees. Substantially all
employees may become eligible for these benefits if they
reach retirement age while still working for Entergy
Services.
Effective January 1, 1993, Entergy Services adopted SFAS
106, "Employers' Accounting for Postretirement Benefits
Other Than Pensions". The new standard required a change
from a cash method to an accrual method in accounting for
these benefits. At January 1, 1993, the actuarially
determined accumulated postretirement benefit obligation
earned by retirees and active employees was estimated to be
approximately $14.1 million. This obligation is being
amortized as expense over a 20-year period beginning in
1993. Entergy Services is recovering the increased cost of
other postretirement benefits due to the adoption of SFAS
106 under the Services Agreements with the System companies.
Total postretirement benefit costs of Entergy Services for
1995, 1994 and 1993, including amounts capitalized, included
the following components (in thousands):
1995 1994 1993
Service cost-benefits earned
during the period $ 1,863 $ 1,850 $1,069
Interest cost on accumulated 1,660 1,259 1,141
postretirement benefit
obligation (APBO)
Net amortization and deferral 785 794 704
-------- ------- ------
Net periodic postretirement $ 4,308 $ 3,903 $2,914
benefit cost ======== ======= ======
The funded status of Entergy Services' postretirement plans
as of December 31, 1995 and 1994, was (in thousands):
1995 1994
Accumulated postretirement benefit
obligation:
Retirees $ 7,039 $5,084
Other fully eligible participants 4,900 4,628
Other active participants 11,288 7,288
------- -------
23,227 17,000
Plan assets at fair value - -
------- -------
Plan assets less than APBO (23,227) (17,000)
Unrecognized transition obligation 11,953 12,657
Unrecognized net loss (gain) 1,735 (1,574)
-------- -------
Accrued postretirement benefit $ (9,539) $(5,917)
liability ======== =======
The assumed health care cost trend rate used in measuring
the APBO of Entergy Services was 8.4%, gradually decreasing
each successive year until it reaches 5.0% in 2005. A one
percentage increase in the assumed health care cost trend
rate for each year would have increased the APBO of Entergy
Services as of December 31, 1995 by 14.6% and the sum of the
service cost and interest cost by approximately 16.4%. The
assumed discount rate and rate of increase in future
compensation used in determining the APBO were 7.5% for
1995, 8.5% for 1994 and 7.5% for 1993, and 4.6% for 1995,
5.1% for 1994 and 5.5% for 1993, respectively.
5. LEASES
The Company records the assets and related obligations
applicable to capital leases. The assets and liabilities
associated with the capital lease at December 31, 1995 and
1994 are presented below (in thousands):
1995 1994
Assets:
Computer equipment $ 9,673 $9,673
Accumulated amortization (8,269) (5,957)
------- -------
Net $ 1,404 $3,716
======= ======
Liabilities:
Capital lease obligation $ - $1,619
Current portion of capital lease 1,404 2,097
obligation
------- ------
Total $ 1,404 $3,716
======= ======
At December 31, 1995, Entergy Services had capital and
noncancelable operating leases with minimum lease payments
as follow (in thousands):
Capital Operating
Lease Leases
1996 $ 1,519 $19,221
1997 - 16,734
1998 - 13,377
1999 - 12,808
2000 - 11,292
For years thereafter - 70,416
------- --------
Minimum rental commitments 1,519 $143,848
Less amount representing interest 115 ========
-------
Present value of net minimum lease $ 1,404
payments =======
Rental expense for capital and operating leases amounted to
approximately $28.7 million, $33.4 million, and $18.0
million for 1995, 1994 and 1993, respectively. Entergy has
guaranteed Entergy Services' obligations under the capital
leases.
6. BULK POWER SYSTEM OPERATIONS
Entergy Services acts as agent for the coordination of joint
bulk power system operations among the System operating
companies. All amounts receivable from the power purchasers
or payable to the power suppliers as a result of the bulk
power transactions are recorded in Entergy Services'
accounts receivable or accounts payable balances, and have
no effect on Entergy Services' income or expenses.
7. SALE AND LEASEBACK OF COMPUTER CENTER
During 1985, Entergy Services entered into an agreement for
the sale and leaseback of the Computer Center land and
building. The related lease has been classified as an
operating lease for accounting purposes and, accordingly,
the net book value of the building has been removed from the
balance sheet. A gain on the sale of approximately $3.5
million was deferred and is being amortized over the primary
term of the lease which is twenty-five years with the option
to extend the lease for six additional consecutive terms of
five years each. Estimated future minimum rental
commitments related to this lease are included in Note 4 -
"Leases."
8. CANCELED LEASE PAYABLE
Effective January 1, 1991, Entergy Services entered into a
sublease agreement for a leased office building. Entergy
Services recorded a loss on its 1991 financial statements of
$6.2 million primarily for the difference between the
remaining lease payments and the expected future rentals to
have been received. In 1992, Entergy Services canceled the
lease agreement and replaced it with a new agreement with
the new owners of the building. In conjunction with the
lease cancellation, Entergy Services received a payment of
$4.7 million from the sublessor in settlement of its
obligation under the sublease, and an additional loss of
$1.3 million was recorded, primarily for the difference
between the amount received for cancellation of the sublease
and the expected future rental amount utilized in the
initial computation of the loss. The new arrangement
provides for monthly payments of $171,000 through September
1997.
The noncurrent liability represents the amounts payable
under the new arrangement, net of approximately $2.1 million
for the current portion included in Accounts Payable. The
noncurrent receivable from associated companies represents
amounts not yet collected from billing of the losses.
9. OTHER DEFERRED CREDITS
Other Deferred Credits (Account # 253) consist of the
following:
1995 1994
Unamortized gain on the sale of Computer Center $2,154 $2,294
(Note 6)
Accrued pension and postretirement benefit 36,887 31,227
liabilities (Note 3)
Cancelled lease payable (Note 7) 1,359 3,408
Accrued rental liability 445
Other 237 292
------- -------
$40,637 $37,666
======= =======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XV Statement of Income
(In Thousands)
Account Description Current Prior Year
Year
Income
457 Services rendered to associate companies $397,530 $411,162
458 Services rendered to nonassociate companies 148 240
421 Miscellaneous income or loss 454 126
------- -------
Total Income 398,132 411,528
======= =======
Expense
920 Salaries and wages 167,723 164,140
921 Office supplies and expenses 38,648 42,560
922 Administrative expense
transferred - credit
923 Outside services employed 48,582 51,249
924 Property insurance 1,054 467
925 Injuries and damages 119 37
926 Employee pensions and benefits 26,220 36,479
928 Regulatory commission expense
930.1 General advertising expenses 4,906 2,526
930.2 Miscellaneous general expenses 19,383 16,927
931 Rents 36,603 46,088
932 Maintenance of structures and equipment 17,843 11,358
403 Depreciation and amortization expense 17,369 23,341
408 Taxes other than income taxes 15,550 13,745
409 Income taxes (689) 124
410 Provision for deferred income taxes 155
411 Provision for deferred income taxes - credit (243)
411.5 Investment tax credit 277 128
426.1 Donations 4
426.5 Other deductions 26
427 Interest on long-term debt
430 Interest on debt to associate companies 2,202 2,467
431 Other interest expense 2,161 131
------- -------
Total Expense 398,132 411,528
======= =======
Net Income or $0 $0
(Loss)
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Analysis of Billing
Associate Companies - Account 457
(In Thousands)
Direct Indirect Compensation Total
Costs Costs For Use Amount
Name of Associate Company Charged Charged of Capital Billed
457-1 457-2 457-3
Arkansas Power & Light Company 65,794 $16,802 $82,596
Gulf States Utilities, Inc. 89,244 23,136 112,380
Louisiana Power & Light Company 66,834 17,182 84,016
Mississippi Power & Light Company 34,889 8,972 43,861
New Orleans Public Service Inc. 18,657 4,920 23,577
Entergy Corporation 14,607 4,404 19,011
System Fuels, Inc. 1,509 468 1,977
Entergy Enterprises, Inc. 1,856 671 2,527
Entergy Operations, Inc. 21,113 6,175 27,288
Entergy Power, Inc. 166 54 220
Deferred 69 8 77
-------- ------- ----- --------
TOTAL $314,738 $82,792 - 0 - $397,530
======== ======= ===== ========
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Analysis of Billing
Nonassociate Companies - Account 458
(In Thousands)
Instruction:
Provide a brief description of the services rendered to each
nonassociate company:
Direct Indirect Compensation Excess Total
Cost Cost For Use Total Or Amount
Name of Nonassociate Charged Charged of Capital Cost Deficiency Billed
Company
458-1 458-2 457-3 458-4
<S> <C> <C> <C> <C>
Entergy Services Pension $140 $8 $148 $148
Plan
Administration of
Entergy Services
pension plan
---- ---- ---- ---- ---- ----
TOTAL $140 $8 $0 $148 $0 $148
==== ==== ==== ==== ==== ====
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XVI - Analysis of Charges for Service Associate and
Nonassociate Companies
(In Thousands)
Instruction:
Total cost of service will equal for associate and
nonassociate companies the total amount billed under their
separate analysis of billing schedules.
Associate Co. Charges Nonassociate Co.Charges Total Charges for Service
Direct Indirect Direct Indirect Direct Indirect
Account Description of Items Cost Cost Total Cost Cost Total Cost Cost Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages $124,688 $42,899 $167,587 $134 $2 $136 $124,822 $42,901 $167,723
921 Office Supplies and Expenses 34,986 3,661 38,647 1 1 34,987 3,661 38,648
922 Administrative Expense
Transferred - Credit
923 Outside Services Employed 45,579 3,003 48,582 45,579 3,003 48,582
924 Property Insurance 243 811 1,054 243 811 1,054
925 Injuries and Damages 62 57 119 62 57 119
926 Employee Pensions and Benefits 25,298 916 26,214 6 6 25,298 922 26,220
928 Regulatory Commission Expense
930.1 General Advertising Expenses 4,846 60 4,906 4,846 60 4,906
930.2 Miscellaneous General Expenses 16,598 2,787 19,385 (2) (2) 16,596 2,787 19,383
931 Rents 33,657 2,939 36,596 7 7 33,664 2,939 36,603
932 Maintenance of Structures 15,532 2,311 17,843 15,532 2,311 17,843
and Equipment
403 Depreciation and Amortization 91 17,278 17,369 91 17,278 17,369
Expense
408 Taxes Other Than Income Taxes 13,338 2,212 15,550 13,338 2,212 15,550
409 Income Taxes (689) (689) (689) (689)
410 Provision for Deferred Income 155 155 155 155
Taxes
411 Provision for Deferred Income
Taxes - Credit
411.5 Investment Tax Credit 277 277 277 277
426.1 Donations
426.5 Other Deductions 26 26 26 26
427 Interest on Long-Term Debt
431 Other Interest Expense 2,161 2,161 2,161 2,161
------- ------ ------- ---- --- ---- -------- ------- --------
TOTAL EXPENSES 314,944 80,838 395,782 140 8 148 315,084 80,846 395,930
Compensation for use of
Equity Capital
430 Interest on Debt to Associate 2,202 2,202 2,202 2,202
Companies -------- ------- -------- ---- --- ---- -------- ------- --------
TOTAL COST OF SERVICE $314,944 $83,040 $397,984 $140 $8 $148 $315,084 $83,048 $398,132
======== ======= ======== ==== === ==== ======== ======= ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XVII - Schedule of Expense Distribution by
Department or Service Function
(In Thousands)
Instruction:
Indicate each department or service function. (See
Instruction 01-3 General Structure of Accounting System:
Uniform System of Accounts).
Account
Total Adminis- Environ- Legal External Fuel
Number Description of Items Amount Overhead tration Aviation mental Services Finance Affairs Operations
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages $167,723 $17,475 $6,341 $1,568 $1,831 $4,527 $22,036 $7,030 $6,755
921 Office Supplies and Expenses $38,648 782 3,182 2,349 699 576 2,684 1,712 1,010
923 Outside Services Employed $48,582 1,686 1,691 274 1,590 5,706 3,100 2,957 1,006
924 Property Insurance $1,054 (2) 1,085 (29)
925 Injuries and Damages $119 12
926 Employee Pensions and $26,220 250 1,030 182 229 458 2,795 771 822
Benefits
928 Regulatory Commission Expense
930.1 General Advertising Expenses $4,906 17 11 1 1 10 1,731
930.2 Miscellaneous General $19,383 7,582 239 318 238 171 611 533 1,082
Expenses
931 Rents $36,603 27 20,377 3,532 19 8 235 71 775
932 Maintenance of Structures $17,843 136 3,455 1,690 48 2 64 6 204
and Equipment
403 Depreciation and $17,369 10,746
Amortization Expense
408 Taxes Other Than Income Taxes $15,550 1,573 682 336 166 395 1,938 615 614
409 Income Taxes ($689) (689)
410 Provision for Deferred $155 155
Income Taxes
411 Provision for Deferred
Income Taxes - Credit
411.5 Investment Tax Credit $277 277
426.1 Donations
426.5 Other Deductions $26 26
427 Interest on Long-Term Debt
430 Interest on Debt to $2,202 2,202
Associate Companies
431 Other Interest Expense $2,161 2,083 36 42
-------- ------- ------- ------- ------ ------- ------- ------- -------
TOTAL EXPENSES $398,132 $44,585 $36,749 $10,285 $4,821 $11,844 $34,612 $15,397 $12,268
======== ======= ======= ======= ====== ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XVII - Schedule of Expense Distribution by
Department or Service Function
(In Thousands)
Human Information Customer Plant Trans & Integrated Fossil
Resources Services Marketing Service Operations Dist. Planning Operations
<S> <C> <C> <C> <C> <C> <C> <C> <C>
920 $8,411 $19,763 $11,113 $23,542 $12,084 $15,376 $4,865 $5,006
921 1,548 6,894 3,390 7,960 2,403 2,439 952 68
923 2,655 8,432 6,057 3,825 4,446 560 4,555 42
924
925 107
926 7,374 2,368 1,512 3,593 1,584 1,876 520 856
928
930.1 9 2,966 114 3 3 40
930.2 2,722 1,445 935 1,813 519 422 130 623
931 40 10,455 45 269 72 433 23 222
932 32 9,833 244 609 985 520 12 3
403 90 6,533
408 756 1,757 941 2,049 1,129 1,387 752 460
409
410
411
411.5
426.1
426.5
427
430
431
------- ------- ------- ------- ------- ------- ------- ------
$23,547 $61,037 $27,203 $43,881 $23,225 $23,016 $18,382 $7,280
======= ======= ======= ======= ======= ======= ======= ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Departmental Analysis of Salaries - Account 920
(In Thousands)
Departmental Salary Expense
Name of Department Included in Amounts Billed to Number of
Indicate each department Total Parent Other Non Personnel
or service function Amount Company Associates Associates End of Year
<S> <C> <C> <C> <C> <C>
See page 21-A $167,723 $6,939 $160,648 $136 2,568
-------- ------ -------- ---- -----
TOTAL $167,723 $6,939 $160,648 $136 2,568
======== ====== ======== ===== =====
</TABLE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Outside Services Employed - Account 923
(In Thousands)
Instructions:
Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee and
included within one subaccount is less than $25,000, only
the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Address Associate Amount
See pages 21-B thru 21-H $48,582
=======
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Departmental Analysis of Salaries - Account 920
(In Thousands)
Departmental Salary Expense
Name of Department Included in Amounts Billed to Number of
Indicate each department Total Parent Other Non Personnel
or service function Amount Company Associates Associates End of Year
<S> <C> <C> <C> <C> <C>
Corporate 17,475 1,919 15,556 40
Administration 6,341 315 6,026 93
Aviation 1,568 265 1,303 29
Environmental Support 1,831 8 1,823 31
Legal Services 4,527 468 4,059 77
Finance 22,036 1,857 20,127 52 385
External Affairs 8,005 690 7,315 111
Fuel 6,755 42 6,713 114
Human Resources 8,411 183 8,144 84 141
Information Services 19,763 688 19,075 347
Marketing 11,113 46 11,067 177
Customer Service 23,542 236 23,306 508
Plant Operations 12,084 60 12,024 175
Transmission & 15,376 74 15,302 273
Distribution
Integrated Planning 3,890 49 3,841 63
Fossil Operations 5,006 39 4,967 4
-------- ------ -------- ---- -----
$167,723 $6,939 $160,648 $136 2,568
======== ====== ======== ==== =====
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
OUTSIDE SERVICE - LEGAL
Chisenhall, Nestrud & Julian NA $42
Failure Analysis Associates NA 110
Friday, Eldredge & Clark NA 327
Germer & Gertz LLP NA 122
Howry & Simon NA 42
Huber Lawrence & Abell NA 43
Jones, Walker, Waechter, et.al. NA 86
Juge Napolitano Leyva NA 33
Kullman, Inman, Bee, Downing & Banta NA 243
McGlinchey Stafford & Lang NA 82
Monroe & Lemann NA 85
Morgan Lewis & Bockius NA 114
Nationsbanc Leasing Cop NA 32
Phelps Dunbar NA 65
Reid & Priest NA 1,112
Skadden, Arps, Slate, Meagher NA 199
Steeg & O'Connor NA 34
Steptoe & Johnson NA 661
Stone, Pigman, Walther NA 641
Taylor, Porter, Brooks & Phillip NA 87
Watkins, Ludlam & Stennis NA 41
Winston & Strawn NA 149
Wise, Carter, Child & Caraway NA 658
Others (120) NA 565
-----
Total 5,573
-----
OUTSIDE SERVICE - ENGINEERING
Baker Consulting Group NA 30
Flour Daniel NA 167
General Electric NA 70
Independent Consultant Services Inc. NA 32
International Loss Control Institute NA 46
Joe Pohlman Consultants NA 52
Odessa Engineering NA 89
Petrocon Engineering NA 383
Raytheon Engineers NA 343
Others ( 34 ) NA 6
-----
Total 1,218
-----
OUTSIDE SERVICE - AUDITING
Coopers & Lybrand NA 64
----
Total 64
----
OUTSIDE SERVICE - MANAGEMENT
CONSULTANTS
A T Kearney NA 547
Gartner Group NA 135
Joe Donnelly NA 100
McKinsey & Company, Inc. NA 2,373
Metzler & Associates NA 1,365
Reed Whittle Associates Inc. NA 314
RHR International Co. NA 41
Stern Stewart Co. NA 63
Sweeney & Co., Inc. NA 161
Others (23 ) NA 123
-----
Total 5,222
-----
OUTSIDE SERVICE - OTHER
A Test Consultants, Inc. NA 59
AAA Travel Agency NA 27
Acculab, Inc. NA 43
Acruarial Sciences Associates, Inc. NA 316
Addison Corp Annual Report NA 50
Addison Whitney NA 55
ADM Associates, Inc NA 246
Advantage Business Systems NA 45
Aerotek NA 136
American Citadel Guard Inc. NA 392
American Management Systems, Inc. NA 110
Ameridata, Inc. NA 455
Andersen Consulting NA 865
APG USA, Inc. NA 486
AR Analytical, Inc. NA 26
Archie Manning NA 29
Arkansas Power & Light A 207
Arthur Andersen & Co. NA 254
Aspen Systems Corp. NA 328
A T Kearney NA 3,411
A T & T NA 504
Atlas Van Lines NA 42
Barakat & Chamberlin, Inc. NA 589
Bart's Office Furniture NA 53
Bauerlein, Inc. NA 59
Bellsouth Billing Services NA 116
Bewley Construction Co. NA 63
Bobrow Consulting Group, Inc. NA 88
Brooks & Jackson, Inc. NA 31
BRS Group, Inc. NA 53
Bryan Associates, Inc. NA 232
BSG Alliance IT Inc. NA 409
Burns & McDonnell NA 181
Business Solutions, Inc. NA 29
Cambridge Energy Research NA 39
CCN, Inc. NA 29
Christensen & Associates NA 43
Clayton A Arnold NA 53
Comdisco NA 295
Compuserve NA 27
Computer Prep, Inc. NA 33
Comshare Inc. NA 38
Connally Consulting NA 44
Coopers & Lybrand LLP NA 121
Crown Sterling International NA 111
Datronics, Inc. NA 183
David Schaper & Karen Glenn NA 37
DCM Services NA 115
Delta-Comm, Inc. NA 258
Dempsey Thomas Films NA 63
Dennis Thomas & Associates NA 109
Diamond Data Systems, Inc NA 198
Diversified Computer Consultants NA 943
Document Information Systems NA 168
Doug Rye & Associates NA 33
Drake Beam Morin, Inc. NA 72
DRT Systems International, LP NA 88
Dun & Bradstreet Information Systems NA 41
Econat Inc. NA 384
Edu-Tech Industries NA 580
Electric Power Research Institute NA 965
Electronic Data Systems Corp. NA 123
Electrostatic on Site Service NA 36
EMCO Co, Inc. NA 53
Energy Management Associates, Inc. NA 83
Energy Market Solutions NA 34
Entergy Operations, Inc. A 97
Energy Rated Homes of Arkansas NA 32
Energy Ventures Analysis Inc. NA 87
Enterprise Resource Management, Inc. NA 128
Entre Computer Center NA 193
Environmental Science & Engineering NA 33
Equifax Credit Info Services NA 51
Federal Express Corporation NA 149
Financial Concepts & Applications NA 94
First Commerce Corp. NA 29
First National Bank of Commerce NA 71
Flight Safety Foundation NA 39
Focus Research NA 72
Freeport McMoran NA 143
Fry Consultants NA 122
FTN Associates, LTD NA 40
General Electric Company NA 49
General Physics Corporation NA 565
Glen Summit NA 29
GPS Technologies, Inc. NA 146
Gulf States Utilities, Inc. A 1,801
Guideline Research Corp. NA 74
Hagler Bailly Consulting, Inc. NA 171
Hauppauge Computer Works, Inc. NA 33
Hederman Brothers NA 46
Hewitt Associates NA 172
Hibernia National Bank NA 155
Hooper Hooper Owen & Gould NA 190
I. William Sizeler NA 44
Inacom Information Systems, Inc. NA 68
Infinity Data Systems NA 457
Infonet Computer Training NA 72
Infotech Corp NA 81
Innova Group, Inc. NA 71
Intercede, Inc. NA 94
ISSC Solutions Center Phoenix NA 37
Jerry Jackson & Associates NA 156
Kass Uehling, Inc. NA 66
Kelley Temporary Services NA 27
Kennedy and Associates NA 182
KFG Inc. NA 194
Kirk Tyson International NA 25
KMPG Peat Marwick NA 51
Kwasha Lipton NA 331
LA Department of Revenue & Taxation NA 74
Louisiana Power & Light Co., Inc A 129
Louisiana State University NA 25
Lamalie Associates, Inc. NA 179
Learning & Development Inc. NA 44
Lenora Cousin NA 36
Macromedia User Journal NA 32
Management Resources, Intl. NA 33
Maris West & Baker, Inc. NA 140
Marshall & Juntunen NA 185
Martin Marietta Info Systems NA 341
Mental Health Network NA 53
Meta Group NA 88
Metco Environmental Inc. NA 533
Microsoft Corp. NA 29
Miller Research Group, Inc. NA 43
MTU Data Systems, Inc. NA 184
Multi Media Corp. NA 29
Net Work Information Systems NA 63
New York Life NA 42
NOLA Computer Service, Inc. NA 303
North Carolina State University NA 25
One Poydras Plaza Venture NA 52
Optibase NA 42
Oracle Corp. NA 460
Orchard Software Corp. NA 89
Oxford Associates, Inc. NA 31
Pace Systems NA 96
Pacific Mutual NA 37
Peter Mayer Advertising NA 68
Price Waterhouse NA 516
Professional Health Services, Inc. NA 138
Prostaff Temporary Services NA 74
Radian Corp. NA 108
RCG Hagler Bailly Inc. NA 411
RMB Consulting & Research NA 37
Romac Professional Temps NA 25
RR Donnelley Receivables, Inc. NA 34
Saic The Flemming Group NA 227
SE Huey Co. NA 55
Seek Consulting Group, Inc. NA 340
Seno & Associates, Inc. NA 43
SETRPC NA 28
Spectra, Inc. NA 85
Strategic Mapping, Inc. NA 85
Sun Microsystems, Inc. NA 464
Synectics, Inc. NA 195
Target Vision NA 55
Tasc at Hand NA 91
Tech Resources, Inc. NA 38
Terra Consulting Corp NA 39
Texas State Technical College NA 32
Thoma & Thoma Creative Service NA 192
Tivoli Systems, Inc. NA 26
TLG Services, Inc. NA 62
Tom Hicks ROW Contractors NA 77
Transaction Systems & Services NA 59
Tulane University NA 175
Ultimate Marketing, Inc. NA 30
UMS Group Incorporated NA 137
Unimar Group, LTD NA 34
Unitrac Software Corp. NA 130
University of New Orleans NA 98
Vantage Consulting Inc. NA 66
VLFR Consulting Service, Inc. NA 101
Walk Haydel & Associates, Inc. NA 44
Walker CSM NA 1,397
Walker Information NA 297
Walls Environmental Consulting NA 47
Warren Forthought Inc. NA 61
WEFA Group NA 57
West Publishing Corp. NA 71
William G. Davis NA 29
Williamson Printing Corp. NA 183
Woodward Clyde Consultants NA 100
Working Capital Co, Inc. NA 208
WSI Corp. NA 135
Wyatt Co. NA 561
Xenergy, Inc. NA 42
Others ( 1042 ) NA 3,326
------
Total 36,505
------
TOTAL $48,582
=======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Employee Pensions and Benefits - Account 926
(In Thousands)
Instructions:
Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be
limited to $25,000.
Description Amount
Medical &Other Benefits Under Flex Benefit Programs $7,867
Savings Plan 3,256
Pension Plans 6,620
Employee Meetings/Functions/Awards 2,644
Educational Reimbursement 417
Post Retirement Plan Benefits 5,122
Employee Stock Investment Plan 274
Other 20
-------
TOTAL $26,220
=======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
General Advertising Expenses - Account 930.1
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses," classifying the items
according to the nature of the advertising and as defined in
the account definition. If a particular class includes an
amount in excess of $3,000 applicable to a single payee,
show separately the name of the payee and the aggregate
amount applicable thereto.
Description Name of Payee Amount Amount
Advertising in Newspapers, Arkansas Livestock Show $6
periodicals, billboards, Audubon Institute 3
radio, etc. Bella Luna Restaurant 10
Blenheim Trade Shows 3
Bluffs on Thompson Creek 7
Bravo Special Events 30
Broussard Economic Development 9
Carencro Economic Development 5
Carlson Marketing 24
Clear Channel Communications 5
Coco Marina #1 4
Convention Connection 8
Cranford Johnson & Robinson 591
Daly Enterprise 4
Dillon Poche Catering Inc 8
Doug's Hunting Lodge 3
Edison Electric Institute 8
East Feliciana Parish 5
Fitzgerald Advertising, Inc. 19
Fairmont Hotel 15
Grand Prix Du Mardi Gras 38
Group C Communications 29
Greater Baton Rouge Economic Prog. 6
Greater New Orleans Sports Foundation 4
Hackberry Rod & Gun 3
Hotel Inter Continental 76
Houston Oilers 4
Information Architecture 29
Iberville Business Development 5
Jackson Generals 3
Keating Magee Long 6
LA Department of Economic Dev. 21
LA Furnishings Industry Assoc. 5
Lewis Advertising 44
Louisiana State University 5
Louisian Assn. of Business & Industry 6
Le Meridien New Orleans 14
Little Rock Club 5
Lodge at the Bluffs 5
Loews Anatole Hotel 8
New Orleans Hilton 55
New Orleans Saints 13
Saenger Theater 15
Synergistic Control Systems 15
Town of Oak Grove 15
United Way 45
Loyola University 10
Mariott's Grand Hotel 8
Metromarketing Services Inc. 9
Miller Freeman Publications 3
Newswatch on Channel 15 34
Nichols State University 7
Ouchita Enterprise Corp 4
Plimsoll Club 18
Radisson Hotel 7
Razorback Foundation Inc. 6
Red Apple Inn 8
Reddy Communications Inc 15
River Bend Promotions 6
Riverfest Inc. 3
Sandestin Resorts, Inc. 20
Santa Maria Golf Course 4
Southern Christian Leadership 5
Southern Dev & Investment Group 10
Sportsmans Paradise 4
Stephens Sports Managament 35
Sulpher Mines Assn. 3
Texas Black Pages 3
Texas Engineering Extension Svc. 4
Tiger Athletic Foundation 7
Towery Publishing Inc. 9
University of Arkansas 16
University of New Orleans 9
USWest Education Foundation 25
Westin Canal Place 9
White House Promotions 67
Wildlife Farms 63
Winnsboro Economic Development 5
WYES-TV12 7
Advertising Matter Adlers 5
such as Posters, Bulletins American Specialty Advertising 11
booklets and related items Aramark Corp 10
Bauerlein 94
Boudreaux's 6
Chateau Golf & Country Club 5
City Park 4
Classic Foundation, Inc. 10
Deposit Guaranty Golf Classic 6
Economic Development 10
Foster Associates, Inc. 19
Freeport-McMoran Golf Classic 58
Goodbuy Sportswear 4
Graphic Reproductions, Inc. 4
Krewe of Bacchus, Inc. 4
Land's End, Inc 11
Long & Associates, Inc. 25
Maris, West & Baker Inc 1,021
McDonald's 10
Oxford Screen Printing 10
RSVP Catering 3
Thoma & Thoma 256
Timberlane Country Club 6
Woodlands 28
World Trade Center 11
Fees and expenses of Alexander & Ainsworth 9
advertising agencies and Ann Lee & Associates 9
commercial artists Archie Manning 25
Available Lighting & Motion Pictures 4
Benchmark Advertising Co. 6
Bertrand Designs 6
Margaret M Carver 4
Colonnade Group 19
Conway Data, Inc 15
Creative Marketing 5
Demand Management Co 7
Dempsey Thomas Films 367
Dixie Marketing Group, Inc 7
Doug Rye & Associates 4
Electrotechnology Marketing 28
Evans, David A 3
James A. Beckham, Jr. 18
Ferguson, Belinda A 4
Focus Research 6
Heidi Flynn Allen 7
Stephen G Hunt 4
Industrial Developers Research 25
Marketplace Information Corp 6
Marlo Carter Sibley 4
Miller Research Group Inc. 10
Morgan Anderson & Co 13
Pace Systems 13
Robertson & Associates, Inc. 8
Rosalini Film Productions, Inc. 189
Silas Lee III 5
Stephen C. Williamson 5
Printing of Booklets,
Dodgers, Bulletins, etc.
AR Express 4
ASAP 5
Capitol Advertising 23
Direct Mail & Computer Service 18
Dom Greishaber Promotions 4
GB Enterprises 7
Gemini Manufacturing 6
H K Stewart Creative Services 29
Joe A Cummins Advertising 23
Little Rock Advertising & Printing 12
Mail Comm Inc 7
Monahan Printers 5
Print Works, Inc. 4
Quick Print Printing 10
Ramona Robuck Advertising 8
Sherwood Printing Co. 57
United Mail Service, Inc 6
Vi Com, Inc. 3
Supplies & Expenses in Dell Computer Corp 8
Preparing Advertising Hederman Bros. 12
Materials MSG Systems Inc. 3
Sandra M. Steudlein 5
Party Basket 5
Perfect Timing Watersavers 4
Postmaster 58
Reed Exhibitions Inc. 6
Ultimate Marketing Inc. 11
Others 413
----
TOTAL $4,906
======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Miscellaneous General Expenses - Account 930.2
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses," classifying such expenses
according to their nature. Payments and expenses permitted
by Section 321(b)(2) of the Federal Election Campaign Act,
as amended by Public Law 94-283 in 1976 (2 U.S.C.
SS441(b)(2)) shall be separately classified.
Description Amount
Employee development $2,194
Employee relocation and outplacement 3,135
Applicant expenses 615
Industry Associatoin Dues / Corporate Memberships 7,227
Other corporate expenses 6,212
-------
TOTAL $19,383
=======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Rents - Account 931
(In Thousands)
Instructions.
Provide a listing of the amount included in Account 931,
"Rents," classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
Type of Property Amount
General office $19,576
Office furniture and fixtures 1,185
Computer hardware 9,891
Computer software 1,708
Aircraft 3,400
Other 843
-------
TOTAL $36,603
=======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Taxes Other Than Income Taxes - Account 408
(In Thousands)
Instructions:
Provide an analysis of Account 408, "Taxes Other Than Income
Taxes." Separate the analysis into two groups: (1) other
than U.S. Government taxes, and (2) U.S. Government taxes.
Specify each of the various kinds of taxes and show the
amounts thereof. Provide a subtotal for each class of tax.
Kind of Tax Amount
See page 24-A $15,550
-------
TOTAL $15,550
=======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Donations - Account 426.1
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 426.1,
"Donations," classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000
may be in lieu of details.
Name of Recipient Purpose of Donation Amount
None -0-
TOTAL
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Taxes Other Than Income Taxes - Account 408
(In Thousands)
Kind of Tax Amount
Taxes Other Than U.S. Government Taxes
Property taxes $2,121
Unemployment taxes 685
Franchise taxes 115
Other taxes 200
-----
Total 3,121
=====
U.S. Government Taxes
FICA taxes 12,253
Unemployment taxes 176
------
Total 12,429
------
TOTAL $15,550
=======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Other Deductions - Account 426.5
(In Thousands)
Instructions:
Provide a listing of the amount included in Account 426.5,
"Other Deductions," classifying such expenses according to
their nature.
Description Name of Payee Amount
Penalty on use tax assessment State of Louisiana $26
---
TOTAL $26
===
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Schedule XVIII - Notes to Statement of Income
Instructions:
The space below is provided for important notes regarding
the statement of income or any account thereof.
Furnishparticulars as to any significant increases in
services rendered or expenses incurred during the year.
Notes relating tofinancial statements shown elsewhere in
this report may be indicated here by reference.
See Notes to Financial Statements on pages 14 - B thru 14 - H
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Organization Chart
See pages 26 - A
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
See page 26 - B thru 26 - D
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Annual Statement of Compensation for Use of Capital Billed
- None -
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Organization Chart
Chairman
Human Resources & Administration
Human Resources
Administration
Customer Service
Marketing
Customer Service
Transmission & Distribution
Aviation
Finance
Finance
Information Services
External Affairs
Vice Chairman
Legal Services
External Affairs
Fossil Operations
Fossil Operations
Plant Operations
Fuels Operations
Integrated Planning
Environmental Support
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
Note: Each allocation formula is based on data relevant to
the participating State Legal Entity.
Energy Sales
Based on total electric/gas energy sold to Residential,
Commercial, Industrial, Government and Municipal
consumers.
Customers
Based on a twelve month average of Residential,
Commercial, Industrial, Government and Municipal
general business
electric/gas customers.
Employees
Based on the number of full time employees at year-end.
Capability/Responsibility Ratio
The Capability/Responsibility Ratio of a company is the
System capability multiplied by the ratio obtained by
dividing a company's peak load by the System peak load.
The company's peak load is the average of the twelve
monthly highest clock hour demands in kilowatts of the
Company's interconnected system, occurring each month
coincident with the System peak load, during the twelve
month period ending with the current month.
Composite - Energy Sales, Customers, Employees and
Capability/Responsibility Ratio
Based on four components with equal weighting to each:
kilowatt-hour energy sales, average customers, number
of employees and capability responsibility ratio.
Composite - Energy Sales, Customers and DCS Employees
Based on three components of equal weighting: energy
sales, average customers and number of Distribution and
Customer Service employees.
Transmission Line Miles
Based on the number of miles of transmission lines,
weighted for design voltage. (Voltage < 500kv = 1,
Voltage >= 500kv = 2)
Substations
Distribution Substations is based on the number of high
voltage substations weighted for voltage. (Voltage <
500kv = 1, Voltage >= 500kv = 2)
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
Aircraft Ridership
Based on employee use of company aircraft.
Disaster Recovery Applications
Based on the number of software applications that
require alternate mainframe processing support for
business continuity during a computer center disaster.
Equity/Capitalization Ratio
This ratio is computed for Entergy Corporation and the
Client Companies as follows: . Entergy Corporation's
allocation is the ratio of common shareholders equity
to total capitalization; . the Client Companies
allocation is the ratio of preferred stock plus long
term debt to total capitalization.
Final Bill Processing
Based on the total number of final bills processed for
collection.
Gas Consumption
Based on the volume of natural gas consumed annually by
all gas fired generating units within the Entergy
system.
Income and Deduction Ratio
Based on the previous years federal income tax return,
total income plus total deductions.
Level of Service
Based on Entergy Services' total billings to each
Client Company excluding corporate overhead.
Money Pool Transactions
Based on each company's use of the money pool, weighted
75% on frequency of transactions, and 25% on dollar
amount of the transaction.
Nuclear and Casualty/Property Insurance Premiums
Based on total Client Company costs for the previous
year's insurance premium.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
Participants in Plans
Several formulae are based on the number of
participants in various Client Company plans and
programs, such as:
. Savings Plan
. Flexible Benefits Programs
. Master Trust Plan
. ESOP
. Student/Parent Loan Program
. Systemwide Welfare Plans
. Benefits Plus Flexible Spending Account
. Non-Qualified Defined Contribution Restoration Plan
. Personal Effects Floater Plan
. Personal Property and Casualty Benefits
Preferred Stockholders
Based on total number of preferred stockholders at
year-end.
Revenues
Based on total general business revenues from energy
sales to Residential, Commercial, Industrial,
Government and Municipal consumers.
System Capacity
Based on the power level, rated in kilowatts, that
could be achieved if all generating units were
operating at maximum capability simultaneously.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Appendix
Information in Compliance With Item 4 of SEC
Letter Dated December 29, 1986
(In Thousands)
Cost of services charged to Service Requests
established to track cost of functions performed by
System Fuels, Inc. SFI)personnel transferred to
Entergy Services, Inc. (Entergy Services) Amount
Direct Cost:
Labor and related cost $247
Other direct cost 39
Indirect cost 29
-----
Total 314
-----
Cost of services charged to Service Requests not
related to the transfer of SFI personnel 1,663
------
Total cost of services performed by Entergy
Services and billed to SFI $1,977
======
Amounts billed to Operating Companies for Fuel Oil
Program* $1,371
Deferred Cost/Services (4)
Charged to Nuclear Fuel Inventory 134
Charged to Gas and Oil Development and Production
Program 476
------
Total $1,977
======
*Amounts charged to the Fuel Oil Program as a component of
period cost. For 1995, based on monthly averages, period
costs were allocated, 8% to Arkansas Power & Light Company
AP&L), 56% to Louisiana Power & Light Company, 26% to
Mississippi Power & Light Company and 10% to New Orleans
Public Service Inc.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1995
Appendix
Information in Compliance With Item 4 of SEC
Letter Dated December 29, 1986
Allocation of Indirect Cost
Indirect cost is comprised of labor loading and variable
overhead. The labor loading and variable overhead are
allocated to Service Requests on the basis of labor dollars
charged to each Service Request.
Fuels Department Cost
The labor costs of Entergy Services personnel, performing
work for SFI, are recorded by the Service Request process
similar to all other costs incurred by Entergy Services.
Various Service Requests have been established in Entergy
Services to track the cost of functions performed by Entergy
Services personnel for SFI matters which are billed 100% to
SFI.
Services Provided
The Fuel Accounting Section , of Corporate Accounting &
Reporting(CA&R) , provides accounting services to SFI in the
following areas: fuel oil inventory accounting, nuclear fuel
inventory accounting, disbursements of royalties and
revenues to joint venture partners, billing of fuels and
services provided to the Operating Companies, coordination
and preparation of budgets and forecasts for SFI , and, data
required by various regulatory agencies and others. General
ledger and financial and operating reports services are
provided by the General Ledger Process Section of CA&R,
and, Source Systems provide accounts payable services. The
Property Accounting provides accounting services relative to
SFI's properties, both owned and leased properties.
An SFI Business Unit provides services that include
operation and supervision of the operating oil and gas
wells, administering contracts for product sales, collecting
and distributing of revenues from product sales,
administering operating agreements including collection of
expenses from other working interest and maintenance of fuel
oil facilities.
Changes in Organization
As previously reported, the System's fuels planning and
procurement administration was reorganized during 1988,
which redefined the fuels management roles and placed the
responsibility for most fuel procurement decisions with the
Entergy Corporation System Executives.
In general, the Operating Companies execute and administer
power plant gas and coal contracts under an acquisition and
administration policy. 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.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Signature Clause
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935 and the rules and regulations of the
Securities and Exchange Commission issued thereunder, the
undersigned company has duly caused this report to be signed
on its behalf by the undersigned officer thereunto duly
authorized.
Entergy Services, Inc.
---------------------------
(Name of Reporting Company)
By: /s/ Louis E. Buck, Jr.
(Signature of Signing Officer)
Louis E. Buck, Jr., Vice President & Chief Accounting Officer
---------------------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 30, 1996
---------------
<TABLE> <S> <C>
<ARTICLE> OPUR2
<MULTIPLIER> 1,000
<CIK> 0000810347
<NAME> ENTERGY SERVICES, INC.
<SUBSIDIARY>
<NUMBER> 027
<NAME> ENTERGY SERVICES, INC.
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-END> DEC-31-1995 DEC-31-1994
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 82,081 88,586
<TOTAL-INVESTMENTS> 0 0
<TOTAL-CURRENT-ASSETS> 68,265 107,288
<TOTAL-DEFERRED-DEBITS> 2,891 5,097
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 153,237 200,971
<TOTAL-PROPRIETARY-CAPITAL> 20 20
<TOTAL-LONG-TERM-DEBT> 0 1,619
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 10,545 0
<OTHER-CURR-AND-ACCRUED-LIAB> 101,033 160,912
<TOTAL-DEFERRED-CREDITS> 41,669 38,420
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 153,237 200,971
<SERVICES-ASSOCIATE-COMPANIES> 397,530 411,162
<SERVICES-NON-ASSOCIATE-COMP> 148 240
<MISC-INCOME-OR-LOSS> 454 126
<TOTAL-INCOME> 398,132 411,528
<SALARIES-AND-WAGES> 167,723 164,140
<EMPLOYEE-PENSION-AND-BENEFIT> 26,220 36,479
<OTHER-EXPENSES> 204,189 210,909
<TOTAL-EXPENSES> 398,132 411,528
<NET-INCOME> 0 0
<TOTAL-EXPENSES-DIRECT-COST> 315,084 325,879
<TOTAL-EXPENSES-INDIRECT-COST> 80,846 85,808
<TOT-EXP-DIRECT-AND-INDIRECT> 395,930 411,687
<PERSONNEL-END-OF-YEAR> 2,568 2,631
</TABLE>
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