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Previous: SKYLINE FUND, 497J, 1997-04-30 |
Next: PENN MUTUAL VARIABLE LIFE ACCOUNT I, 485BPOS, 1997-04-30 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1996 and Ending December 31, 1996
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 of Incorporation February 11, 1963 If not Incorporated, Date of
Organization State or Sovereign Power under which Incorporated 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 VP & Chief Accounting Officer P. O. Box 61000,
New Orleans, LA. 70161
<Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
Entergy Corporation
- -------------------------------------------------------------------------------
1 of 28 pages
<PAGE>
BLANK
2 of 28 pages
<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.
3 of 28 pages
<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 26
Billed
Appendix
Information in compliance with Item 4 of SEC letter 26 - D
dated December 29, 1986
4 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Schedule I - Comparative BalanceSheet
(In Thousands)
Give balance sheet of the Company as of December 31 of the current and
prior year.
<TABLE>
<CAPTION>
Account Assets and Other Debits As of December 31
Current Prior
Service Company Property
<S> <C> <C> <C>
101 Service company property (Schedule II) $154,300 $145,686
107 Construction work in progress (Schedule II) 16,799 14,181
--------------------
Total Property 171,099 159,867
--------------------
108 Less accumulated provision for depreciation
and amortization of service
company property (Schedule III) 89,253 77,786
--------------------
Net Service Company Property 81,846 82,081
-------------------
Investments
123 Investments in associate companies
(Schedule IV)
124 Other Investments (Schedule IV) --------------------
Total Investments 0 0
--------------------
Current and Accrued Assets
131 Cash 5,712 10,396
134 Special deposits 279 259
135 Working funds 150 62
136 Temporary cash investments (Schedule IV) 16,662
141 Notes receivable 56
143 Accounts receivable 12,819 10,024
144 Accumulated provision of uncollectible
accounts
146 Accounts receivable from associate 88,057 43,465
companies (Schedule V)
152 Fuel stock expenses undistributed
(Schedule VI)
154 Materials and supplies 252
163 Stores expense undistributed (Schedule VII)
165 Prepayments 58 3,807
174 Miscellaneous current and accrued assets 462
(Schedule VIII) --------------------
Total Current and Accrued Assets 124,255 68,265
--------------------
Deferred Debits
181 Unamortized debt expense
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) 10,314 1,616
188 Research, development, or demonstration
expenditures (Schedule X)
190 Accumulated deferred income taxes 2,164 1,275
--------------------
Total Deferred Debits 12,478 2,891
--------------------
TOTAL ASSETS AND OTHER DEBITS $218,579 $153,237
====================
</TABLE>
5 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Schedule I - Comparative Balance Sheet
(In Thousands)
<TABLE>
<CAPTION>
Account Account Liabilities and Proprietary Capital As of December 31
Current Prior
Proprietary Capital
<S> <C> <C> <C>
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)
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term
debt-debit
---------------------
Total Long-Term Debt 0 0
---------------------
Current and Accrued Liabilities
231 Notes payable
232 Accounts payable 103,871 66,737
233 Notes payable to associate companies 17,052 10,545
(Schedule XIII)
234 Accounts payable to associate companies 15,473 27,529
(Schedule XIII)
236 Taxes accrued 678 279
237 Interest accrued
238 Dividends declared
241 Tax collections payable 1,164 548
242 Miscellaneous current and accrued 23,645 5,910
liabilities (Schedule XIII) ---------------------
Total Current and Accrued Liabilities 161,883 111,548
---------------------
Deferred Credits
253 Other deferred credits (See Note 9) 53,781 40,637
255 Accumulated deferred investment tax credits 2,895 1,032
---------------------
Total Deferred Credits 56,676 41,669
---------------------
282 Accumulated Deferred Income Taxes
---------------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $218,579 $153,237
=====================
6 OF 28 PAGES
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
Schedule II - Service Company Property
<In Thousands>
<TABLE>
<CAPTION>
Balance at Retirements Balance
Beginning or Other (1) at Close
Description of Year Additions Sales Changes of Year
Service Company Property
<S> <C> <C> <C> <C> <C>
Account
301 Organization
303 Miscellaneous Intangible
Plant $ 5,835 $ 1,774 $ 445 $ 7,164
304 Land and Land Rights 1,707 1,707
305 Structures and
Improvements 9,319 122 478 ($59) 8,904
306 Leasehold Improvements 5,549 624 575 6,748
307 Equipment (2) 93,990 13,298 10,099 (631) 96,558
308 Office Furniture and
Equipment 19,697 4,073 208 106 23,668
309 Automobiles, Other
Vehicles and Related
Garage Equipment 190 16 63 9 152
310 Aircraft and Airport
Equipment 9,399 9,399
311 Other Service Company
Property (3)
-------------------------------------------------------------------
SUB-TOTAL 145,686 19,907 11,293 0 154,300
-------------------------------------------------------------------
107 Construction Work in
Progress (4) 14,181 22,525 19,907 16,799
-------------------------------------------------------------------
TOTAL $159,867 $42,432 $31,200 $0 $171,099
====================================================================
</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>
Balance at
Close of
Subaccount Description Additions Year
<S> <C> <C>
Microwave Equipment
General Office $ 480 $ 5,223
Computer Center 1,776 4,515
System Operations Center 77
EDP Equipment
General Office 9,056 47,651
Computer Center 1,917 20,882
System Operations Center 69 18,210
----------------------
TOTAL $13,298 $96,558
- -----------------------------------------------------------======================
(3) Describe other service company property:
- ---------------------------------------------------------------------------------
(4) Describe construction work in progress: Primarily computer equipment, fiber
optics equipment and furniture/fixtures.
7 of 28 pages
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
Schedule III - Accumulated Provision for Depreciation and Amortization
of Service Company Property
(In Thousands)
<TABLE>
<CAPTION>
Balance at Additions Other Balance
Beginning Charged to Changes Add at Close
Description of Year Account 403 Retirements (Deduct)(1) of Year
<S> <C> <C> <C> <C> <C>
Account
301 Organization
303 Miscellaneous Intangible Plant $ 4,477 $ 1,079 $ 5,556
304 Land and Land Rights
305 Structures and Improvements 486 245 $ 54 677
306 Leasehold Improvements 2,266 531 2,797
307 Equipment 54,555 15,487 10,344 $1,404 61,102
308 Office Furniture and Fixtures 12,570 2,109 112 14,567
309 Automobiles, Other Vehicles
and Related Garage Equipment 142 471 613
310 Aircraft and Airport Equipment 3,290 651 3,941
311 Other Service Company Property
--------------------------------------------------------------------------
TOTAL $77,786 $20,573 $10,510 $1,404 $89,253
==========================================================================
(1) Provide an explanation of those changes considered material:
Other charges for amortization of leased property not charged to Account 403 (see Note 5).
8 of 28 pages
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Year Close of Year
<S> <C> <C>
Account 123 - Investment in Associate Companies None None
Account 124 - Other Investments None None
Account 136 - Temporary Cash Investments - Money Pool ( See Note 3 ) None $16,662
---------------------------------
TOTAL - 0 - $16,662
=================================
</TABLE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Balance at Balance at
Beginning Close
Description of Year of Year
<S> <C> <C>
Account 146 - Accounts Receivable from Associate Companies
See page 9-A $43,465 $88,057
--------------------------
TOTAL $43,465 $88,057
==========================
Total
Payments
Analysis of Convenience or Accommodation Payments: ---------
See page 9-A $ 5,257
---------
TOTAL PAYMENTS $ 5,257
=========
9 of 28 pages
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
Schedule V - Accounts Receivable from Associate Companies
(In Thousands)
<TABLE>
<CAPTION> Balance at Balance
Beginning Close
Description of Year of Year
<S> <C> <C>
Account 146 - Accounts Receivable from Associate Companies
Entergy Arkansas, Inc. $ 2,424 $ 4,819
Entergy Louisiana, Inc. 18,947 21,186
Entergy Mississippi, Inc. 1,263 2,909
Entergy New Orleans, Inc. 2,137 8,534
Entergy Corporation 683 11,265
Entergy Operations, Inc. 3,159 4,381
Entergy Power, Inc. 275 331
System Fuels, Inc. 77 201
Entergy Enterprises, Inc. 514 688
Entergy Gulf States, Inc. 13,986 33,740
Money Pool 3
------------------------
TOTAL $43,465 $88,057
========================
Bulk Power Other
Payments Payments
Analysis of Convenience or Accommodation Payments:
Entergy Arkansas, Inc. ($225,310) $1,036
Entergy Louisiana, Inc. 198,612 1,014
Entergy Mississippi, Inc. (35,278) 573
Entergy New Orleans, Inc. 55,804 280
Entergy Corporation 1,351
Entergy Operations, Inc. (27)
Entergy Power, Inc. 4,241 15
System Fuels, Inc. 196
Entergy Enterprises, Inc. 810
Entergy Gulf States, Inc. 174,342 9
Nonassociated Companies (172,411)
-----------------------
$ - $5,257
=======================
9-A
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Description Labor Expenses Total
<S> <C> <C> <C>
Account 152 - Fuel Stock Expenses Undistributed None None None
------------------------------
TOTAL $ 0 $ 0 $ 0
==============================
Summary:
</TABLE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Description Labor Expenses Total
<S> <C> <C> <C>
Account 163 - Stores Expense Undistributed None None None
------------------------------
TOTAL $ 0 $ 0 $ 0
==============================
10 of 28 pages
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Close of
Year Year
<S> <C> <C>
Account 174 - Miscellaneous Current and Accrued Assets
See page 11 - A $0 $462
----------------------
TOTAL $0 $462
======================
</TABLE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
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 in each class.
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Close of
Year Year
<S> <C> <C>
Account 186 - Miscellaneous Deferred Debits
See page 11-A $1,616 $10,314
--------------------------
TOTAL $1,616 $10,314
==========================
</TABLE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Description Amount
<S> <C>
Account 188 - Research, Development, or Demonstration Expenditures None
-------
TOTAL $ 0
=======
11 of 28 pages
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
Schedule VIII - Miscellaneous Current and Accrued Assets
(In Thousands)
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Close of
Year Year
<S> <C> <C>
Account 174 - Miscellaneous Current and Accrued Assets
Advance payments $0 $462
------------------
TOTAL $0 $462
==================
</TABLE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
Schedle IX - Miscellaneous Deferred Debits
(In Thousands)
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Close of
Year Year
<S> <C> <C>
Account 186 - Miscellaneous Deferred Debits
Noncurrent receivable for Associate Companies $1,528 $0
Deferred ESOP credit 148 0
Deferred cost for new company - to be billed in 1997 0 347
Long Term Incentive Plan 0 9,936
Other (5) (60) 31
-------------------
TOTAL $1,616 $10,314
===================
11-A
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
Schedule XI - Proprietary Capital
<TABLE>
<CAPTION>
Number of Shares Par or Stated Outstanding Close of Period
Account Number Class of Stock Authorized Value Per Share No. of Shares Total Amount
<S> <C> <C> <C> <C> <C>
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.
<TABLE>
<CAPTION>
Description Amount
<S> <C>
Account 211 - Miscellaneous Paid-in Capital None
Account 215 - Appropriated Retained Earnings None
----------
TOTAL $ 0
==========
</TABLE>
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 nonassoicates 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.
<TABLE>
<CAPTION>
Balance at Net Income Dividends Balance at
Description Beginning of Year -or (loss) Paid Close of Year
<S> <C> <C> <C> <C>
Account 216 - Unappropriated Retained Earnings None None None None
-----------------------------------------------
TOTAL $0 $ 0 $ 0 $ 0
===============================================
12 of 28 pages
</TABLE>
<PAGE>
Annual Report of Entergy Services, Inc.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Terms of Obligation Balance at Balance at
Class & Series Date of Interest Amount Beginning Close
Name of Creditor of Obligation Maturity Rate Authorized of Year Additions Deductions of Year
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Account 223 - Advances from
Associate
Companies: None None None
Account 224 - Other Long-Term
Debt: None None None
--------------------------------------------
TOTAL $0 $0 $0 $0
============================================
13 of 28 pages
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Close of
Year Year
<S> <C> <C>
Account 233 - Notes Payable to Associate Companies
Money Pool $10,545 $17,052
-------------------
TOTAL $10,545 $17,052
===================
Account 234 - Accounts Payable to Associate Companies
See page 14-A $27,529 $15,473
-------------------
TOTAL $27,529 $15,473
===================
Account 242 - Miscellaneous Current and Accrued Liabilities
See page 14-A $ 5,910 $23,645
-------------------
TOTAL $ 5,910 $23,645
===================
</TABLE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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 - G
14 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Schedule XIII - Current and Accrued Liabilities
(In Thousands)
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Year Close of Year
<S> <C> <C>
Account 234 - Accounts Payable to Associate Companies
Entergy Arkansas, Inc. $22,936 $ 8,842
Entergy Louisiana, Inc. 2 569
Entergy Mississippi, Inc. 1,051 3,381
Entergy New Orleans, Inc. 327
Entergy Gulf States, Inc. 801 1,224
Entergy Corporation 2,483 1,248
Entergy Operations, Inc. 74 (251)
Entergy Power, Inc
Entergy Enterprises, Inc.
System Fuels, Inc.
Money Pool Interest 182 133
-----------------------------
TOTAL $27,529 $15,473
=============================
Account 242 - Miscellaneous Current And Accrued Liabilities
Accrued rent expense $ 1,030 $ 1,030
Accrued savings plan expense and withholdings 469 233
Accrued benefit plans expense and withholdings 1,711 2,122
Accrued severence pay 2,431 1,623
Accrued audit expense 28
Accrued claims liability 241 569
Industry transition liability 18,068
-----------------------------
TOTAL $ 5,910 $23,645
=============================
14 - A
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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, was authorized to conduct business as a service company
for Entergy Corporation and its various subsidiaries (Entergy) 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 Entergy. Such services are priced so that Entergy
Services operates on a break-even basis.
Entergy Services maintains its accounts in accordance with the Public Utility
Holding Company Act of 1935, as administered by the SEC, and has adopted a
system of accounts consistent with the system of accounts prescribed by the
Federal Energy Regulatory Commission. Certain reclassifications have been made
to conform to current period presentation.
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, 1996 and
1995, and the reported amounts of revenues and expenses during fiscal years
1996, 1995, and 1994. 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 1996 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 accounts for income taxes pursuant to Statement of Financial
Accounting Standards No. 109 "Accounting for Income Taxes" (FAS 109). This
standard requires that deferred income taxes be recorded for all temporary
differences between the financial statement and tax basis of assets and
liabilities and loss carryforwards, and that deferred tax balances be based on
enacted tax laws at tax rates that are expected to be in effect when the
temporary differences reverse.
Entergy Services joins its parent and the other Entergy Corporation
subsidiaries in filing a consolidated Federal income tax return. Income taxes
(or benefits) are allocated to Entergy Services in proportion to its
consolidated taxable income. SEC regulations require that neither Entergy
Services nor its affiliates pay more income taxes than it would have paid had
a separate income tax return been filed. In addition, Entergy Services files a
consolidated Arkansas and combined Mississippi income tax return with certain
other Entergy Corporation subsidiaries, and a separate company Louisiana income
tax return.
14-B
<PAGE>
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.
E. Cash and Cash Equivalents
Entergy Services considers all unrestricted highly liquid debt instruments
purchased 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.
2. INCOME TAXES
At December 31, 1996 and 1995, Entergy Services had deferred tax assets
totaling $2.2 million and $1.3 million, respectively, consisting of pension
accruals, severance accruals, deferred compensation, SFAS 106 accruals, and
depreciation differences. The benefit associated with these deferred tax
assets has been or will be utilized in the Entergy Corporation dependent upon
the allocation of the tax benefit from the Entergy Corporation consolidated
return. Entergy Services also had $2.9 million and $1.0 million in deferred
taxes for unamortized investment tax credits at December 31, 1996 and 1995,
respectively.
Entergy Services'effective income tax rate was 100% in 1996, 1995, and 1994,
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 Entergy Services collects revenue adequate to fund its income tax
expense.
3. NOTES PAYABLE
Entergy Services has SEC authorization, through November 30, 2001, to effect
short-term borrowings from Entergy Corporation in an aggregate amount
outstanding at any one time of up to $150 million through a borrowing
arrangement with interest rates based on a prime rate. This borrowing
arrangement was not used during 1996, 1995, or 1994. In addition, Entergy
Services had $70 million in unused bank lines of credit at December 31, 1996
and 1995, which carried commitment fees of 0.125% on the undrawn balance.
Entergy Services participates with certain other Entergy companies in a System
Money Pool (Money Pool) arrangement whereby those companies with available funds
may invest in the Money Pool while other companies, except Entergy Corporation,
may borrow on a short-term basis from the Money Pool, thereby reducing the
dependence on external short-term borrowings. As authorized by the SEC, the
borrowings by Entergy Services from the Money Pool, combined with any external
borrowings, may not exceed the amount of the unused portion of the borrowing
arrangement discussed above.
The borrowings and applicable interest rates under the Money Pool arrangement
were as follows (amounts in thousands):
</TABLE>
<TABLE>
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Average borrowing $43,026 $44,612 $52,258
Maximum borrowing at month end $50,642 $66,523 $71,239
Average effective interest rate:
During the year 5.4% 6.0% 4.0%
At end of year 5.9% 6.0% 6.1%
</TABLE>
At December 31, 1996 and 1995, Entergy Services' temporary borrowing position
in the Money Pool was $17.1 million and $10.5 million, respectively.
14-C
<PAGE>
4. EMPLOYEE BENEFIT PLANS
Employee Benefits Plans
Certain key employees of Entergy Services participate in the Equity Ownership
Plan of Entergy Corporation and Subsidiaries (Equity Plan) in which they
receive shares of common stock based upon achievement of specified performance
goals, the costs of which are initially deferred and then charged to income over
the restricted period. At December 31, 1996, there were shares with a cost of
$9.9 million included in Other Deferred Debits for Entergy Corporation common
stock purchased related to the Equity Plan. In 1996, $2.6 million was charged to
compensation expense under the Equity Plan, representing 95,056 shares.
Employees of Entergy Services are also eligible to participate in the Savings
Plan of Entergy Corporation and Subsidiaries (Savings Plan) upon meeting certain
eligibility requirements. The Savings Plan provides that the employing Entergy
subsidiary may make matching contributions to the Savings Plan in an amount
equal to 50 percent of the participant's basic contribution. In 1996, 1995, and
1994, Entergy Services contributed $3.2 million, $3.3 million, and $2.7 million,
respectively, to the Savings Plan.
Eligible employees of Entergy Services may participate in the Employee Stock
Ownership Plan of Entergy Corporation and Subsidiaries (ESOP). The ESOP is a
defined contribution plan. Contributions to the ESOP, and any income thereon,
are invested in Entergy Corporation common stock and are based on the expected
utilization of additional investment tax credits in the applicable Federal
income tax return of Entergy Corporation and its subsidiaries. There was no
contribution to the ESOP in the years ended December 31, 1996 and 1994.
Entergy Services contributed approximately $250,000 to the ESOP for the year
ended December 31, 1995.
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 compensation during
the final 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 include 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 1996, 1995, and 1994 allocated pension cost, including
amounts capitalized, included the following components (in thousands):
<TABLE>
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Service cost-benefits earned
during the period $ 7,481 $ 5,097 $ 5,314
Interest cost on the projected
benefit obligation 7,995 6,064 5,948
Actual return on plan assets (9,961) (13,202) 410
Net amortization and deferral 4,010 8,908 (2,504)
--------------------------------
Net pension cost $ 9,525 $ 6,867 $ 9,168
================================
14-D
</TABLE>
<PAGE>
The funded status of the pension plan, with respect to Entergy Services, at
December 31, 1996 and 1995, was as follows (in thousands):
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Actuarial present value of accumulated
pension plan benefits:
Vested $ 73,939 $57,413
Nonvested 1,146 90
-------------------------
Accumulated benefit obligation $ 75,085 $ 58,313
=========================
Plan assets at fair value $ 87,971 $ 66,011
Projected benefit obligation 115,637 89,133
-------------------------
Plan assests less than projected
benefit obligation (27,666) (23,122)
Unrecognized prior service cost 2,658 2,887
Unrecognized transition asset (1,477) (1,644)
Unrecognized net loss 17,831 10,608
-------------------------
Accrued pension liability $ (8,654) $(11,271)
=========================
</TABLE>
The significant actuarial assumptions used in computing the information above
for 1996, 1995, and 1994 were as follows: weighted average discount rate,
7.75% for 1996, 7.5% for 1995, and 8.5% for 1994; weighted average rate of
increase in future compensation levels, 4.6% for 1996 and 1995, and 5.1% for
1994; and expected long-term rate of return on plan assets, 9.0% for 1996, and
8.5% for 1995 and 1994. 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, 1996, and 1995, the
recorded liability for these plans was approximately $19.7 million and $16.1
million, respectively. The discount rate used in the determination of these
liabilities was 8.25% in 1996 and 1995.
Entergy Services' total recorded pension liability (including the funded plan
covering substantially all employees and the supplemental unfunded plans
described above) at December 31, 1996 and 1995, was $28.4 million and
$27.3 million, respectively.
Other Postretirement Benefit
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 No. 106, "Employers'
Accounting for Postretirement Benefits Other Than Pensions" (SFAS 106). The
new standard required the use of an accrual method in accounting for these
benefits. At January 1, 1993, the actuarially determined accumulated
postretirement benefit obligation (APBO) 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 Entergy
companies.
14-E
<PAGE>
Total postretirement benefit costs of Entergy Services for 1996, 1995, and
1994, including amounts capitalized, included the following components
(in thousands):
<TABLE>
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Service cost-benefits earned
during the period $ 2,960 $ 1,863 $ 1,850
Interest cost on APBO 2,338 1,660 1,259
Net amortization and deferral 1,297 785 794
-----------------------------
Net periodic postretirement
benefit cost $ 6,595 $ 4,308 $ 3,903
=============================
</TABLE>
The funded status of Entergy Services' postretirement plans as of
December 31, 1996 and 1995, was (in thousands):
<TABLE>
<CAPTION>
1996 1995
<S> <C> <C>
Accumulated postretirement benefit obligation:
Retirees $ 12,373 $ 7,039
Other fully eligible participants 6,809 4,900
Other active participants 15,453 11,288
--------------------
$ 34,635 $ 23,227
Plan assets at fair value - -
---------------------
Plan assets less than APBO (34,635) (23,227)
Unrecognized transition obligation 11,249 11,953
Unrecognized net loss (gain) 8,440 1,735
---------------------
Accrued postretirement benefit liability $(14,946) $ (9,539)
=====================
</TABLE>
The assumed health care cost trend rate used in measuring the APBO of Entergy
Services was 7.6% for 1997, 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, 1996, by 14.6% and the sum of the service cost and interest
cost by approximately 16.5%. The assumed discount rate and rate of increase in
future compensation used in determining the APBO were 7.75% for 1996, 7.5% for
1995, and 8.5% for 1994, and 4.6% for 1996 and 1995, and 5.1% for 1994,
respectively. The expected long-term rate of return on plan assets was 9.0%
for 1996, and 8.5% for 1995 and 1994.
5. LEASES
Entergy Services records the assets and related obligations applicable to
capital leases. Entergy Services' capital lease on computer equipment expired
in June 1996, and the lease was renewed as an operating lease. At December 31,
1996, there were no outstanding capital leases. The asset, net of accumulated
amortization, and the liability associated with this capital lease at
December 31, 1995, were approximately $1.4 million.
14-F
<PAGE>
At December 31, 1996, Entergy Services had noncancelable operating leases with
minimum lease payments as follows (in thousands):
<TABLE>
<CAPTION>
Minimum lease
Payments
-------------
<S> <C>
1997 $ 15,934
1998 14,736
1999 13,830
2000 12,198
2001 11,900
For years thereafter 103,778
-------------
$ 172,376
=============
</TABLE>
Rental expense for operating leases amounted to approximately $31.5 for 1996
and rental expense for capital and operating leases amounted to approximately
$28.7 million and $33.4 million for 1995 and 1994, respectively.
6. BULK POWER SYSTEM OPERATIONS
Entergy Services acts as agent for the coordination of joint bulk power system
operations among the Entergy 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 5 - Leases.
8. TRANSACTIONS WITH AFFILIATES
Various Entergy Corporation subsidiaries rent office facilities and provide
certain general and administrative services to Entergy Services. These
expenses amounted to approximately $13.7 million, $14.3 million and $21.4
million in 1996, 1995, and 1994, respectively.
9. OTHER DEFERRED CREDITS
Other Deferred Credits (Account #253) consist of the following:
<TABLE>
<CAPTION>
1996 1995
------------------
<S> <C> <C>
Unamortized gain on the sale of $ 2,014 $ 2,154
Computer Center (Note 7)
Accrued pension and postretirement 51,610 36,887
benefit liabilities
Canceled lease payable 1,359
Other 157 237
-----------------
$53,781 $40,637
=================
14-G
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Schedule XV Statement of Income
(In Thousands)
<TABLE>
<CAPTION>
Account Description Current Year Prior Year
Income
<S> <C> <C> <C>
457 Services rendered to associate companies $440,283 $397,530
458 Services rendered to nonassociate companies 201 148
421 Miscellaneous income or loss 187 454
------------------------
Total Income 440,671 398,132
------------------------
Expense
920 Salaries and wages 171,008 167,723
921 Office supplies and expenses 41,703 38,648
922 Administrative expense transferred - credit
923 Outside services employed 78,703 48,582
924 Property insurance 535 1,054
925 Injuries and damages 61 119
926 Employee pensions and benefits 36,170 26,220
928 Regulatory commission expense
930.1 General advertising expenses 9,652 4,906
930.2 Miscellaneous general expenses 15,720 19,383
931 Rents 31,465 36,603
932 Maintenance of structures and equipment 18,364 17,843
403 Depreciation and amortization expense 20,573 17,369
408 Taxes other than income taxes 13,602 15,550
409 Income taxes 933 (689)
410 Provision for deferred income taxes (889) 155
411 Provision for deferred income taxes - credit
411.5 Investment tax credit (162) 277
426.1 Donations
426.5 Other deductions 26
427 Interest on long-term debt
430 Interest on debt to associate companies 2,367 2,202
431 Other interest expense 866 2,161
-----------------------
Total Expense 440,671 398,132
=======================
Net Income or (Loss) $0 $0
15 of 28 pages
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Analysis of Billing
Associate Companies - Account 457
(In Thousands)
<TABLE>
<CAPTION>
Direct Indirect Compensation Total
Costs Costs For Use Amount
Name of Associate Company Charged Charged of Capital Billed
457-1 457-2 457-3
<S> <C> <C> <C> <C>
Entergy Arkansas, Inc. $ 68,812 $17,998 $ 86,810
Entergy Gulf States, Inc. 92,222 24,416 116,638
Entergy Louisiana, Inc. 70,446 18,389 88,835
Entergy Mississippi, Inc. 37,556 9,624 47,180
Entergy New Orleans, Inc. 21,268 5,282 26,550
Entergy Corporation 28,146 4,779 32,925
System Fuels, Inc. 1,242 494 1,736
Entergy Enterprises, Inc. 2,688 765 3,453
Entergy Operations, Inc. 28,606 6,842 35,448
Entergy Power, Inc. 299 65 364
Deferred 344 0 344
-------------------------------------------------------
TOTAL $351,629 $88,654 $ 0 $440,283
=======================================================
16 of 28 pages
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Analysis of Billing
Nonassociate Companies - Account 458
(In Thousands)
Instruction:
Provide a brief description of the services rendered to each nonassociate
company:
<TABLE>
<CAPTION>
Direct Indirect Compensation Excess Total
Cost Cost For Use Total Or Amount
Name of Nonassociate Company Charged Charged of Capital Cost Deficiency Billed
458-1 458-2 457-3 458-4
<S> <C> <C> <C> <C> <C> <C>
Entergy Services Pension Plan $146 $0 $146 $146
Administration of Entergy
Services pension plan
Other 55 0 55 55
----------------------------------------------------------------------------------
TOTAL $201 $0 $0 $201 $0 $201
==================================================================================
17 of 28 pages
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Associate Company Charges Nonassociate Company 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>
920 Salaries and Wages $126,102 $44,766 $170,868 $140 $140 $126,242 $44,766 $171,008
921 Office Supplies and Expenses 37,521 4,181 41,702 1 1 37,522 4,181 41,703
922 Administrative Expense
Transferred - Credit
923 Outside Services Employed 74,727 3,976 78,703 74,727 3,976 78,703
924 Property Insurance 200 335 535 200 335 535
925 Injuries and Damages 31 30 61 31 30 61
926 Employee Pensions and Benefits 35,870 300 36,170 35,870 300 36,170
928 Regulatory Commission Expense
930.1 General Advertising Expenses 9,631 21 9,652 9,631 21 9,652
930.2 Miscellaneous General Expenses 10,881 4,839 15,720 10,881 4,839 15,720
931 Rents 29,306 2,099 31,405 60 60 29,366 2,099 31,465
932 Maintenance of Structures
and Equipment 15,897 2,467 18,364 15,897 2,467 18,364
403 Depreciation and Amortization
Expense 77 20,496 20,573 77 20,496 20,573
408 Taxes Other Than Income Taxes 11,542 2,060 13,602 11,542 2,060 13,602
409 Income Taxes 933 933 933 933
410 Provision for Deferred
Income Taxes (889) (889) (889) (889)
411 Provision for Deferred Income
Taxes - Credit
411.5 Investment Tax Credit (162) (162) (162) (162)
426.1 Donations
426.5 Other Deductions
427 Interest on Long-Term Debt
431 Other Interest Expense 866 866 866 866
---------------------------------------------------------------------------------------
TOTAL EXPENSES 351,785 86,318 438,103 201 201 351,986 86,318 438,304
Compensation for use
of Equity Capital
430 Interest on Debt
to Associate Companies 2,367 2,367 2,367 2,367
---------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $351,785 $88,685 $440,470 $201 $201 $351,986 $88,685 $440,671
=======================================================================================
18 of 28 pages
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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).
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
------------------------------------------------------------------------------
Account Description Total Administration Aviation Gas Legal Finance External Fuels &
Number of Items Amount Overhead Operations Services Affairs Operations
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages $171,008 $21,303 $ 5,281 $1,542 $ 771 $ 4,623 $18,713 $ 7,228 $3,452
921 Office Supplies
and Expenses $41,703 1,228 3,629 1,964 115 799 2,370 1,894 402
923 Outside Services
Employed $78,703 3,898 1,065 342 83 6,214 3,090 23,151 187
924 Property Insurance $ 535 535
925 Injuries and Damages $ 61
926 Employee Pensions and
Benefits $36,170 150 828 123 71 351 1,863 544 245
928 Regulatory Commission
Expense
930.1 General Advertising
Expenses $ 9,652 32 1 38 32 6,335 1
930.2 Miscellaneous General
Expenses $15,720 1,073 243 203 (7) 73 1,327 721 524
931 Rents $31,465 22 19,825 2,099 5 16 156 77 3
932 Maintenance of
Structures and
Equipment $18,364 71 3,242 549 62 2 5 24 13
403 Depreciation and
Amortization Expense $20,573 20,573
408 Taxes Other Than
Income Taxes $13,602 2,127 429 116 58 347 1,471 541 256
409 Income Taxes $ 933 933
410 Provision for Deferred
Income Taxes ($ 889) (889)
411 Provision for Deferred
Income Taxes - Credit
411.5 Investment Tax Credit ($ 162) (162)
426.1 Donations
426.5 Other Deductions
427 Interest on Long-Term
Debt
430 Interest on Debt to
Associate Companies $ 2,367 2,367
431 Other Interest Expense $ 866 866
-----------------------------------------------------------------------------------------------
TOTAL EXPENSES $440,671 53,710 34,425 6,938 1,196 12,425 29,562 40,515 5,083
================================================================================================
19 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Schedule XVII - Schedule of Expense Distribution by
Department or Service Function
(In Thousands)
DEPARTMENT OR SERVICE FUNCTION Distri-
Human Information Marketing Customer Plant Trans & Integrated Fossil Nuclear Transmission bution
Account Resources Systems Service Operations Dist. Support Planning Operations
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 $8,596 $26,981 $11,895 $13,389 $11,292 $8,621 $2,031 $2,418 $17,369 $5,503
921 1,840 7,807 2,957 6,769 3,260 2,195 455 526 2,810 683
923 2,048 23,211 4,938 2,971 3,958 167 23 275 336 1,145 1,601
924
925 61
926 22,073 2,485 1,052 1,827 1,051 922 159 333 1,589 504
928
930.1 10 10 2,564 511 10 24 69 2 9 4
930.2 1,356 1,483 1,373 974 469 (26) 194 3,191 1,299 1,250
931 26 7,435 38 39 54 240 5 158 1,260 7
932 35 10,647 110 379 1,475 757 8 20 648 317
403
408 650 2,181 918 1,031 854 650 157 68 1,313 435
409
410
411
411.5
426.1
426.5
427
430
431
---------------------------------------------------------------------------------------------------------------------------
$36,634 $82,240 $25,845 $27,890 $22,423 $13,611 $3,101 $6,991 $336 $27,442 $10,304
===========================================================================================================================
20 of 28 Pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Departmental Analysis of Salaries - Account 920
(In Thousands)
Departmental Salary Expense
Name of Department Included in Amounts Billed 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 $171,008 $9,521 $161,347 $140 2,573
-------- ------ -------- ---- -----
TOTAL $171,008 $9,521 $161,347 $140 2,573
======== ====== ======== ==== =====
</TABLE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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-I $78,703
=======
21 of 28 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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 $21,303 $3,443 $17,860 15
Administration 5,281 377 4,822 $82 108
Aviation 1,542 290 1,252 23
Gas Operations 771 4 767 13
Legal Services 4,623 411 4,212 64
Finance 18,713 1,654 17,001 58 324
External Affairs 7,228 998 6,230 114
Fuel & Operations 3,452 23 3,429 20
Human Resources 8,596 149 8,447 142
Information Systems 26,981 1,075 25,906 517
Marketing 11,895 629 11,266 179
Customer Service 13,389 157 13,232 252
Plant Operations 11,292 65 11,227 171
Transmission & Distribution Support 8,621 67 8,554 177
Integrated Planning 2,031 17 2,014 14
Fossil Operations 2,418 20 2,398 44
Transmission 17,369 110 17,259 307
Distribution 5,503 32 5,471 89
-----------------------------------------------------------
$171,008 $9,521 $161,347 $140 2,573
===========================================================
21 - A
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
<S>
OUTSIDE SERVICES - LEGAL <C> <C>
Baker & Botts, LLP NA $50
Balch & Bingham Attnys & Consultants NA 220
Friday Eldredge & Clark NA 126
Germer & Gertz, LLP NA 266
Gordon Arata McCollam & Duplantis NA 74
Healey & Associates NA 92
Kullman, Inman, Bee, Downing, & Banta NA 131
McCalla Thompson Pyburn Hymowi NA 167
McDermott Will & Emery NA 94
Monroe & Lemann Corp NA 194
Morgan Lewis & Bockius NA 606
Orgain Bell & Tucker NA 94
Phelps Dunbar NA 37
Reid & Priest NA 241
Skadden Arps Slate Meagher NA 778
Slover & Loftus NA 353
Steeg & O'Connor NA 48
Steptoe & Johnson NA 791
Strictly Legal, Inc. NA 29
Swidler & Berlin NA 69
Thompson & Llewellyn PA NA 55
Winston & Strawn NA 185
Wise Carter Child & Caraway NA 521
Others (91) NA 289
-----
Total 5,510
-----
OUTSIDE SERVICES - ENGINEERING
Associated Waterproof Corp. NA $41
ECSI Corporation DBA Linesoft NA 103
Geoscience Engineers LLC NA 30
Landmark Surveying, Inc. NA 62
Odessa Engineering NA 43
Petrocon Engineering, Inc. NA 391
Stone & Webster Engineering Co. NA 62
Tinsley Mullen Engineers, Inc. NA 61
</TABLE>
21 - B
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
<S> <C> <C>
Others (31) NA 66
----
Total 859
----
OUTSIDE SERVICE - AUDITING
Bruno & Tervalon, CPAs NA $31
Coopers & Lybrand, LLP NA 381
Others (1) NA 2
----
Total 414
----
OUTSIDE SERVICE - MANAGEMENT
CONSULTANTS
Andersen Consulting NA $1,620
Berliner Assoc NA 70
Change Partners NA 246
Chatham Partners, Inc. NA 106
Coopers & Lybrand, LLP NA 164
CPI Consulting Associates, Inc. NA 28
Deloitte & Touche, LLP NA 115
Dennis Thomas & Associates NA 55
Destra Consulting Group, Inc. NA 41
Econat, Inc. NA 73
Fulcrum Technologies, Inc. NA 32
JA Wright & Associates, Inc. NA 139
James A Richardson NA 35
Koll Management Services, Inc. NA 65
Mark Kubow NA 360
McKinsey & Co, Inc. NA 2,219
Mesa, Inc. NA 53
Metzler & Associate Mgmt Consultant NA 2,153
Northbridge Group NA 353
Personnel Research Associates, Inc. NA 83
Philip R. Sharp NA 38
Reed Whittle Associates, Inc. NA 1,305
RHR Int'l Co NA 163
Savage Consulting Group, Inc. NA 91
</TABLE>
21 - C
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
<S> <C> <C>
Sheldon B. Hughes Jr. NA 334
Spectra NA 178
Sweeney & Co., Inc. NA 56
Others (38) NA 232
------
Total 10,407
------
OUTSIDE SERVICE - OTHER
A Milton Smith NA $25
A&C Enercom NA 45
Accounting Partners, Inc. NA 88
Actuarial Sciences Assoc, Inc. NA 205
Addison Corp Annual Report NA 60
Advanced Grounding Concepts NA 34
AEE Energy Books NA 38
Aerotek, Inc. NA 996
Aetna Life & Casualty NA 230
Alana Oldham NA 27
Alpharel, Inc. NA 45
American Citadel, Inc. NA 61
American Interplex Laboratories NA 26
Ameridata, Inc. NA 736
Andersen Consulting NA 2,966
APG USA, Inc. NA 137
Apogee Software Systems, Inc. NA 47
Arthur Andersen & Co NA 36
Aspen Systems Corp NA 203
AT Kearney NA 212
AT&T NA 108
Atest Consultants, Inc. NA 77
Austin Software Foundry NA 472
AVPRO, Inc. NA 48
Barakat & Chamberlin, Inc. NA 145
Barts Furniture Repairs, Inc. NA 54
Bayou Cadd, Inc. NA 26
Belcher Chesson, Inc. NA 98
BellSouth NA 610
Bill Grimes & Assoc, Inc. NA 39
Bobrow Consulting Group NA 117
Brandi Dempsey NA 29
21 - D
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
<S> <C> <C>
Brooks & Jackson, Inc. NA 32
BRS Group, Inc. NA 39
Bryan Assoc., Inc. NA 247
Burns & McDonnell NA 133
Business Expertise NA 50
Cambridge Energy Research Associates NA 38
Cartwright Consultation Jeanne NA 37
Catherine P Willems NA 25
Central & SW Corp NA 40
Chetwood Co. Inc. NA 99
Comdisco Disaster Recovery Service NA 314
Computer Merchant Ltd. NA 94
Computer Professionals, Inc. NA 902
Computer Systems Authority, Inc. NA 199
Comshare, Inc. NA 36
Consulting & Training Services NA 98
Contract Solutions NA 53
Conway Consulting NA 26
Coopers & Lybrand, LLP NA 910
Cox Electronic Publishing, Inc. NA 28
Cranford Johnson Robinson Wood NA 77
Crown Sterling Int'l, Inc. NA 31
Dan Baw & Company NA 113
Datronics NA 845
David Schaper & Karen Glenn NA 55
Davis Harmon Group, Inc. NA 443
DCM Services, LLC NA 176
Deloitte & Touche NA 75
Delta Com, Inc. NA 244
Diamond Data Systems, Inc. NA 117
Diversified Computer Consultants NA 1,973
Document Information Systems NA 220
Donn Young Photography, Inc. NA 27
Dorothy F Ramoneda NA 154
Dow Jones & Co. Inc. NA 26
DRT Systems Int'l LP NA 82
Dun & Bradstreet NA 208
Eagle Systems Technology, Inc. NA 215
Edison Electric Institute NA 113
EDU Tech Industries NA 348
Eileen Pohlman NA 32
Electonic Data Systems Corp NA 35
</TABLE>
21 - E
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
<S> <C> <C>
Electra Service Corp NA 53
Electric Power Research Institute NA 263
Electric USA NA 25
Electrotek Concepts, Inc. NA 42
EMCO Co, Inc. NA 60
Emjay Contract Services NA 159
Energy Market Solutions NA 37
Energy Ventures Analysis, Inc. NA 50
Entergy Arkansas, Inc. A 281
Entergy Gulf States, Inc. A 1,641
Entergy Louisiana, Inc. A 129
Entergy Mississippi, Inc. A 26
Entergy New Orleans, Inc. A 259
Entergy Operations, Inc. A 401
Enterprise Resource Mgmt, Inc. NA 125
Equifax Credit Info Services NA 48
Espey Huston & Associates, Inc. NA 63
Ezware NA 123
FedEx Corp NA 159
Filenet Corp NA 252
Financial Concepts & Applications NA 138
Finnin & Assoc, Inc. NA 74
First Commerce Corp NA 30
Frederick Schneiders Research NA 96
Fredericksen Consulting NA 42
Freeport McMoRan, Inc. NA 175
Fry Consultants NA 86
FTN Assoc Ltd NA 41
GAI Consultants, Inc. NA 41
Gartner Group NA 185
GCR & Assoc. Inc. NA 38
General Electric Co NA 92
General Electric Support Services NA 54
General Mechanical Contractors NA 26
General Physics Corp NA 1,249
Geodata Solutions, Inc. NA 179
Glen Summit NA 43
Gordon C Morse NA 27
Grantham & Nichols NA 27
Hagler Bailly Consulting, Inc. NA 99
Harvey Press, Inc. NA 57
Hewitt Associates NA 135
</TABLE>
21 - F
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
<S> <C> <C>
Hibernia Nat'l Bank NA 125
Highland Group Inc. NA 135
Hilton Computer Stategies NA 37
HK Stewart Creative Services NA 35
Hooper Hooper Owen & Gould NA 189
IBM Corp NA 347
ICF Kaiser Consulting Group NA 88
Impulse Telecommunications NA 31
Independent Consultant Service NA 44
Infinity Data Systems, Inc. NA 397
Innova Group, Inc. NA 34
Int'l Business Machines Corp NA 171
Integrated Systems Management NA 44
Integrated Systems Solutions NA 38
Interactive Systems Int'l NA 926
Interim Legal Services Co. NA 26
Irby Construction Co. Corp NA 59
Jennifer Palmer & Co NA 25
Jess Leo Beaty NA 78
John Berry Personnel Consultants NA 60
John Galt Development, Inc. NA 274
Johnsons Secretarial Service I NA 27
Jones Lundin Assoc, Inc. NA 58
JP Systems, Inc. NA 27
Kass Uehling, Inc. NA 317
Kelly Temporary Services, Inc. NA 101
KFG Inc. NA 236
Kwasha Lipton NA 350
LA State University NA 33
Lenora Cousin NA 27
Littleton Group NA 44
Lucille F Griffin NA 30
Lyall Sprong NA 69
Maris West & Baker, Inc. NA 143
Marketing Corp of America NA 415
Marks Paper Co NA 111
Marshall & Juntunen, Inc. NA 58
Meta Group NA 82
Metco Environmental, Inc. NA 400
Microsoft NA 121
Millennium Rankin Technologies NA 35
</TABLE>
21 - G
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
<S> <C> <C>
MTU Data Systems, Inc. NA 250
Nell McCallum & Assoc NA 88
Network Information Systems NA 69
NOLA Computer Services, Inc NA 901
Pace Sound & Lighting NA 125
Pacific Learning System, Inc. NA 43
Paranet, Inc. NA 86
Parker & Associates NA 106
Parviz Rastgoufard PHD NA 70
Peoplesoft NA 37
Personnel Research Assoc Inc NA 173
Pinnacle Group, Inc. NA 154
Plangraphics, Inc. NA 278
Powercerv NA 245
PRI Associates, Inc. NA 57
Price Waterhouse NA 190
Probe Research, Inc. NA 75
Productivity Point International NA 29
Prostaff Temporary Services NA 223
Psychological Services, Inc. NA 32
Public Strategies, Inc. NA 1,205
Radian Corp NA 39
RCG Hagler Bailly, Inc. NA 162
Recon Technologies, Inc. NA 124
RLW Analytics, Inc. NA 135
RMB Consulting & Research NA 31
Robert Walters NA 73
Romac Professional Temps NA 127
RR Donnelley Receivables, Inc. NA 34
RSVP Catering NA 64
Saterley Consulting NA 27
S E Huey Co. NA 36
Seek Consulting Group, Inc. NA 644
Seno & Associates, Inc. NA 50
Setrpc Air Monitoring NA 29
Smead H Grimmett NA 37
Software Innovators, Inc. NA 151
Software Spectrum NA 35
Spectra, Inc. NA 36
Spencer Stuart NA 59
Sun Microsystems, Inc. NA 402
Synectics, Inc. NA 66
</TABLE>
21 - H
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Outside Services Employed - Account 923
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased Associate Amount
<S> <C> <C>
Target Vision, Inc. NA 60
Technology Solutions NA 64
TeraQuest Metrics, Inc. NA 336
Thoma & Thoma Creative Services NA 293
Thomas D Mouras NA 28
TLG Services, Inc. NA 94
Tulane University NA 135
TX Perspectives, Inc. NA 156
Unimar Grup Ltd. NA 50
University of New Orleans NA 150
Utility Marketing Services NA 109
Utility Systems Services, Inc. NA 48
VLFR Consulting Service, Inc. NA 96
Waldemar's Nelson & Co., Inc. NA 65
Walker Information NA 1,689
Walls Environmental Consulting NA 50
WEFA Group, Inc. NA 170
West Publishing Co. Corp NA 69
Williamson Printing Corp NA 166
WLM Inc. NA 73
Woodward Clyde Consultants NA 222
WSI Corp NA 69
Wyatt Data Services NA 94
Xenergy, Inc. NA 25
Zenger Miller NA 29
Restructuring Cost Accrual - Transition to Competition NA 18,068
Others (959) NA 2,282
-------
Total 61,513
-------
Total $78,703
=======
21 - I
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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 $11,285
Savings Plan 3,236
Pension Plans 8,938
Employee Meetings/Functions/Awards 2,798
Educational Reimbursement 325
Post Retirement Plan Benefits 9,239
Employee Stock Investment Plan 316
Other 33
-------
TOTAL $36,170
=======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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.
<TABLE>
<CAPTION>
Description Name of Payee Amount Amount
<S> <C> <C>
Advertising in Newspapers, periodicals, AAS Company $9
billboards, radio, etc. Arkansas Energy Office 25
Arkansas Livestock Show 4
ASHRAE 10
Association of Electric Companies 20
Association of Energy Engineers 35
Audubon Institute 203
Automated Interchange Matching 48
Bano Quality Produce, Inc. 4
BellSouth Billing Services 7
Bluffs on Thompson Creek 9
Burges Smoked Turkeys & Hams 9
Business Council for the United Way 5
Capital Hotel 10
Chamber New Orleans 4
Coco Marina #1 9
Commanders Palace 5
</TABLE>
22 of 28 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
General Advertising Expenses - Account 930.1
(In Thousands)
Description Name of Payee Amount Amount
<S> <C> <C>
Advertising in Newspapers, periodicals, Community Communications Co. 7
billboards, radio, etc. Cranford Johnson Robinson Wood 4,939
Daly Enterprise 8
Dougs Hunting Lodge, Inc. 4
Entergy Corp. 4
Fitzgerald Advertising, Inc. 33
Four Seasons Hotel 5
Golf Channel 14
Group C Communications, Inc. 4
Home Builders Association of MS 3
Home Design Alternatives 7
Institutional Investor, Inc. 3
KYFX 22
LA Department of Economic Development 67
Lake Charles Harbor & Terminal 15
Le Meridien New Orleans 27
Loyola University 7
LSU Department of Athletics 5
LSU Sports Network 9
Marriott 5
Metrovision Partnership Foundation 4
New Beaumont Club 3
New Orleans Hilton 26
New Orleans Saints 14
New Orleans Superbowl XXXI 7
Oxford American, Inc. 24
Pace Systems 5
Panther Tract, Inc. 11
Parkdale Mall Merchants Assoc 3
Planet Symphony 6
Professional Sports Publication 3
Pyramid Discount Golf 6
Radisson Hotel 18
RCG Hagler Bailly, Inc. 29
Reddy Communications, Inc. 5
River City Promotions 17
Riverfest, Inc. 3
Royal Sonesta Hotel 17
Santa Maria Golf Course 5
Science Applications Int'l Corp. 11
Sheraton Hotel New Orleans 15
Southern Christian Leadership 5
Spectra 6
Tiger Athletic Foundation 14
Tulane University 25
</TABLE>
22 - A
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
General Advertising Expenses - Account 930.1
(In Thousands)
Description Name of Payee Amount Amount
<S> <C> <C>
Advertising in Newspapers, periodicals, UALR Tojan Basketball 8
billboards, radio, etc. United Way 41
University of Arkansas Fayetteville 10
University of New Orleans 8
Veterans Observer 5
WADU 4
WAPT TV 8
Western Telematic 11
Westin Canal Place 5
White House Promotions, Inc. 47
World Economic Development 4
WWL AM 44
WYES TV12 15
Advertising Matter such as Posters, Bulletins Andrews Sports Co., Inc. 10
booklets and related items Aramark Corp 7
Balboa Co. 11
Bauerlein, Inc. 127
Boudreaux's 5
Bravo Special Events Management 7
Castlewoods Country Club 5
Chateau Golf & Country Club 5
Chenal Country Club 10
Colonial Country Club 3
Deposit Guaranty Golf Classic 6
Exhibit Designs, Inc. 5
Foster Assoc, Inc. 10
Freeport McDermott 49
Hammond Chamber of Commerce 5
Houston Golf Association 18
Kass Uehling, Inc. 4
Krewe of MidCity 12
Louisiana Gas Association 4
Long & Associates, Inc. 8
Maris West & Baker, Inc. 960
Petroleum Helicopters, Inc. 6
Pleasant Valley Country Club 9
RSVP Catering 3
Thoma & Thoma Creative Service 164
Woodlands Country Club 4
</TABLE>
22 - B
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
General Advertising Expenses - Account 930.1
(In Thousands)
Description Name of Payee Amount Amount
<S> <C> <C>
Fees and expenses of advertising agencies and Access Speakers Bureau 18
commercial artists Advanced Marketing Team 4
Archie Manning 37
Barakat & Chamberlin, Inc. 5
BBI Marketing Services, Inc. 63
Benson Smith & Associates 3
Colonnade Group, Inc. 35
Conway Data 6
Dempsey Thomas Films 215
Doug Rye & Associates, Inc. 10
Flake Wilkerson Market Insight 19
Information Decision Systems 4
J&J Specialty Advertising 11
James A Beckham Jr. 10
Jones Lundin & Associates, Inc. 15
Lloyd Schuh Advertising, Inc. 15
Marketing Corp of America 75
Peter O'Carroll Advertising 8
Public Strategies, Inc. 647
RKS Research & Consulting 4
Robertson & Associates, Inc. 5
Robertson Video & Still Productions 3
Rohms Floral Designs, Ltd. 4
Southern Research Group 5
Still Current Design, Inc. 3
Understanding Unlimited 52
Varoga & Rice The Research Age 8
Video Monitoring Services 10
WEMCO 3
Printing of Booklets, Dodgers, Bulletins, etc. Betty Hunley Designs 6
Capitol Advertising Specialties 10
Dom Grieshaber Promotions 6
Gemini Manufacturing 9
Joe A Cummins Advertising Specialties 14
Kays Composition Co. 26
Louisiana Press Association 3
</TABLE>
22 - C
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
General Advertising Expenses - Account 930.1
(In Thousands)
Description Name of Payee Amount Amount
<S> <C> <C>
Printing of Booklets, Dodgers, Bulletins, etc. Mail Comm, Inc. 8
New Orleans Publishing Group 9
Quick Print Printing 5
Service Printers, Inc. 20
Sherwood Printing Co. 11
United Mail Service, Inc. 10
Vaughn Duplication 4
Supplies & Expenses in Preparing Advertising A Flag Shop, Inc. 3
Materials AAA Travel Agency 38
Absolute Amusements Rental Co. 5
American Express Travel 22
Bond, Walter 6
Brignac, John J 6
Brown, Robert R 7
Eldon H Douglas III 7
Hancock, Joseph D 5
Hederman Brothers 5
Jeter, James R 4
Lee, George M 4
Machu Picchu Travel Services 3
Monograms Unlimited 8
Postmaster 3
Spell, Wayne F 14
Steudlein, Sandra 13
Tommy Gibbs 5
Williamson, Stephen C 5
Others Others 498
------
TOTAL $9,652
======
</TABLE>
22 - D
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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 $2,128
Employee relocation and outplacement 4,796
Applicant expenses 1,222
Industry Association Dues / Corporate Memberships 3,435
Other corporate expenses 4,139
-------
TOTAL $15,720
=======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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 $19,174
Office furniture and fixtures 1,362
Computer hardware 7,096
Computer software 1,023
Aircraft 2,558
Other 252
-------
TOTAL $31,465
=======
23 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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 $13,602
-------
TOTAL $13,602
=======
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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 $ 0
====
24 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
Taxes Other Than Income Taxes - Account 408
(In Thousands)
Kind of Tax Amount
Taxes Other Than U.S. Government Taxes
Property taxes $1,975
Unemployment taxes 439
Franchise taxes
Other taxes 94
------
Total 2,508
------
U.S. Government Taxes
FICA taxes 10,916
Unemployment taxes 178
------
Total 11,094
------
TOTAL $13,602
=======
24 - A
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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
None
----
TOTAL $0
====
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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. Furnish particulars as to any significant
increases in services rendered or expenses incurred during the year. Notes
relating to financial statements shown elsewhere in this report may be
indicated here by reference.
See Notes to Financial Statements on pages 14 - B thru 14 - G
25 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Organization Chart
See page 26 - A
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
See pages 26 - B thru 26 - C
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Annual Statement of Compensation for Use of Capital Billed
- None -
26 of 28 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Organization Chart
Chairman
Human Resources & Administration
Human Resources
Administration
Retail Services
Marketing
Customer Service
Aviation
Finance
Finance
Information Systems
External Affairs
Vice Chairman
Legal Services
External Affairs
Fossil Operations
Fossil Operations
Plant Operations
Fuel & Operations
Integrated Planning
Nuclear
Gas Operations
Gas Operations
Transmission & Distribution
Distribution
Transmission & Distribution Support
Transmission
26 - A
<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 kilowatt-hours of energy sold to 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.
Responsibility Ratio
The Responsibility Ratio of a company is the ratio of the company's
load at time of system peak load. The 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 - Transmission, Distribution/Customer Service
Based on four components of equal weighting: kilowatt-hour energy sales;
average customers; number of distribution and customer service/support
employees; and the Transmission/Substation Composite Allocation Method
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)
Composite - Transmission Line Miles and Substations
Based on two components: Transmission line miles with a 30%
weighting and the number of high voltage substations with a 70%
weighting.
26 - B
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
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.
System Capacity
Based on the power level, rated in kilowatts, that could be achieved
if all generating units were operating at maximum capability
simultaneously.
Computer Usage for Each System Company
Based on the mainframe computer usage as measured in Computer Resource
Units.
Labor Dollars Billed
Based on total labor dollars billed to each company.
Distribution Line Miles
Based on the number of miles of distribution lines.
Coal Consumption
Based on the quantity of tons of coal delivered annually to each coal
plant within the Entergy System.
Accounts Payable Transactions
Based on the number of accounts payable transactions processed annually
for each Entergy System Company.
26 - C
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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 $237
Other direct cost 35
Indirect cost 23
----
Total 295
----
Cost of services charged to Service Requests not related
to the transfer of SFI personnel 1,441
------
Total cost of services performed by Entergy Services and $1,736
billed to SFI ======
Amounts billed to Operating Companies for Fuel Oil Program* $1,105
Deferred Cost/Services 0
Charged to Nuclear Fuel Inventory 281
Charged to Gas and Oil Development and Production Program 350
------
Total $1,736
======
* Amounts charged to the Fuel Oil Program as a component of period cost.
For 1996, based on monthly averages, period costs were allocated 8% to
Entergy Arkansas, Inc. (EAI), 56% to Entergy Louisiana, Inc. (ELI),
26% to Entergy Mississippi, Inc. (EMI), and 10% to Entergy New Orleans,
Inc. (ENOI).
26 - D
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1996
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.
Fuel 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 Corporate Accounting & Fixed Assets (CA&FA) Department provides
accounting services to SFI in the following areas: financial and
operating information services, accounting services relative to SFI's
owned and leased properties, 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 providing data required by various
regulatory and other agencies. Source Systems provides accounts
payable services.
An SFI Business Unit provides services that include operation and
supervision of the operating oil and gas wells, administering
contracts for product sales, collection and distribution 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 fuel 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, continued to be responsible for gas and oil production
until September 6, 1996, when it sold its interest in those
activities effective July 1, 1996. Financing nuclear fuel
inventory and fuel oil inventory and facilities, and accounting
functions related to these continuing activities are still
performed by Entergy Services personnel.
26 - E
<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
(Signature of Signing Officer)
Louis E. Buck Vice President &
Chief Accounting Officer
(Printed Name and Title of Signing Officer)
Date: April 30, 1997
27 of 28 pages
BLANK
28 of 28 pages
<TABLE> <S> <C>
<ARTICLE> OPUR2
<MULTIPLIER> 1,000
<CIK> 0000810347
<NAME> ENTERGY SERVICES, INC.
<SUBSIDIARY>
<NUMBER> 034
<NAME> ENTERGY SERVICES, INC.
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 81,846 82,081
<TOTAL-INVESTMENTS> 0 0
<TOTAL-CURRENT-ASSETS> 124,255 68,265
<TOTAL-DEFERRED-DEBITS> 12,478 2,891
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 218,579 153,237
<TOTAL-PROPRIETARY-CAPITAL> 20 20
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 17,052 10,545
<OTHER-CURR-AND-ACCRUED-LIAB> 144,831 101,003
<TOTAL-DEFERRED-CREDITS> 56,676 41,669
<DEFERRED-INCOME-TAX> 0 0
<TOT-LIABIL-AND-PROPRIET-CAP> 218,579 153,237
<SERVICES-ASSOCIATE-COMPANIES> 440,283 397,530
<SERVICES-NON-ASSOCIATE-COMP> 201 148
<MISC-INCOME-OR-LOSS> 187 454
<TOTAL-INCOME> 440,671 398,132
<SALARIES-AND-WAGES> 171,008 167,723
<EMPLOYEE-PENSION-AND-BENEFIT> 36,170 26,220
<OTHER-EXPENSES> 233,493 204,189
<TOTAL-EXPENSES> 440,671 398,132
<NET-INCOME> 0 0
<TOTAL-EXPENSES-DIRECT-COST> 351,986 315,084
<TOTAL-EXPENSES-INDIRECT-COST> 86,318 80,846
<TOT-EXP-DIRECT-AND-INDIRECT> 438,304 395,930
<PERSONNEL-END-OF-YEAR> 2,573 2,568
</TABLE>
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