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Previous: SIT U S GOVERNMENT SECURITIES FUND INC, 24F-2NT, 1999-04-23 |
Next: KILICO VARIABLE SEPARATE ACCOUNT/IL, 485BPOS, 1999-04-23 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
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 or Organized Delaware
___________
Location of Principal 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. Nathan E. Langston VP, Chief Accounting Officer
(Name) (Title)
P.O. Box 61000, New Orleans, La. 70161
(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 becomes 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 (Sec. 210.3-01 (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, Sec. 210.3-01(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.
2 of 27 Pages
<PAGE>
<TABLE>
<CAPTION>
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account Number Number
<S> <C> <C>
Comparative Balance Sheet Schedule I 4-5
Service Company Property Schedule II 6
Accumulated Provision for Depreciation and Amortization
of Service Company Property Schedule III 7
Investments Schedule IV 8
Accounts Receivable from Associate Companies Schedule V 8
Fuel Stock Expenses Undistributed Schedule VI 9
Stores Expense Undistributed Schedule VII 9
Miscellaneous Current and Accrued Assets Schedule VIII 10
Miscellaneous Deferred Debits Schedule IX 10
Research, Development, or Demonstration Expenditures Schedule X 10
Proprietary Capital Schedule XI 11
Long-Term Debt Schedule XII 12
Current and Accrued Liabilities Schedule XIII 13
Notes to Financial Statements Schedule XIV 13
Statement of Income Schedule XV 14
Analysis of Billing - Associate Companies Account 457 15
Analysis of Billing - Nonassociate Companies Account 458 16
Analysis of Charges for Service - Associate and Schedule XVI 17
Nonassociate Companies
Schedule of Expense of Department or Service Function Schedule XVII 18-19
Departmental Analysis of Salaries Various Accounts 20
Outside Services Employed Various Accounts 20
Employee Pensions and Benefits Various Accounts 21
General Advertising Expenses Various Accounts 21
Miscellaneous General Expenses Various Accounts 22
Rents Various Accounts 22
Taxes Other Than Income Taxes Various Accounts 23
Donations Account 426.1 23
Other Deductions Account 426.5 24
Notes to Statement of Income Schedule XVIII 24
Financial Data Schedule Schedule XIX 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 26-D
dated December 29, 1986
3 of 27 Pages
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Schedule I - Comparative Balance Sheet
(In Thousands)
Give balance sheet of the Company as of December 31 of the current
and prior year.
Account Assets and Other Debits
As of December 31
Current Prior
Service Company Property
<S> <C> <C> <C>
101 Service company property (Schedule II) $ 177,775 $ 165,986
107 Construction work in progress (Schedule II) 35,784 19,263
----------- -----------
Total Property $ 213,559 $ 185,249
----------- -----------
108 Less accumulated provision for depreciation and amortization of
service company property (Schedule III) 131,018 109,167
----------- -----------
Net Service Company Property $ 82,541 $ 76,082
----------- -----------
Investments
123 Investments in associate companies (Schedule IV) - -
124 Other Investments (Schedule IV) - -
----------- -----------
Total Investments $ - $ -
----------- -----------
Current and Accrued Assets
131 Cash 4,802 8,601
134 Special deposits 166 167
135 Working funds 107 126
136 Temporary cash investments (Schedule IV) 10,169 25,202
141 Notes receivable - 121
143 Accounts receivable 5,832 13,996
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 101,987 75,606
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - 1
163 Stores expense undistributed (Schedule VII) (1) 6
165 Prepayments 15 22
174 Miscellaneous current and accrued assets (Schedule VIII) 1,285 512
----------- -----------
Total Current and Accrued Assets $124,362 $124,360
----------- -----------
Deferred Debits
181 Unamortized debt expense - 2
182 Other regulatory assets 31 -
184 Clearing accounts (590) 14
186 Miscellaneous deferred debits (Schedule IX) 8,417 10,398
188 Research, development, or demonstration expenditures (Schedule X) - -
190 Accumulated deferred income taxes 13,992 15,386
----------- -----------
Total Deferred Debits $ 21,850 $ 25,800
----------- -----------
TOTAL ASSETS AND OTHER DEBITS $ 228,753 $ 226,242
=========== ===========
4 of 27 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Schedule I - Comparative Balance Sheet
(In Thousands)
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 $ - $ -
----------- -----------
Current and Accrued Liabilities
231 Notes payable - -
232 Accounts payable 57,891 94,720
233 Notes payable to associate companies (Schedule XIII) (See Note 3) 62,156 29,104
234 Accounts payable to associate companies (Schedule XIII) 27,472 20,287
236 Taxes accrued 12,391 270
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 448 247
242 Miscellaneous current and accrued liabilities (Schedule XIII) 9,551 8,044
----------- -----------
Total Current and Accrued Liabilities $169,909 $152,672
----------- -----------
Deferred Credits
253 Other deferred credits (See Note 8) 49,019 61,443
255 Accumulated deferred investment tax credits 2,700 2,733
----------- -----------
Total Deferred Credits $ 51,719 $ 64,176
----------- -----------
282 Accumulated Deferred Income Taxes 7,105 9,374
----------- -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $ 228,753 $ 226,242
=========== ===========
5 of 27 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Schedule II - Service Company Property
(In Thousands)
Balance at Retirements Balance
Beginning or Other (1) at Close
Description of Year Additions Sales Changes of Year
Service Company Property
Account
<S> <C> <C> <C> <C> <C> <C>
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous Intangible Plant 8,277 2,045 - - 10,322
304 Land and Land Rights 1,708 - - - 1,708
305 Structures and Improvements 8,878 47 - - 8,925
306 Leasehold Improvements 8,263 2,535 - - 10,798
307 Equipment (2) 104,010 4,896 - - 108,906
308 Office Furniture and
Equipment 25,297 2,268 - (2) 27,563
309 Automobiles, Other Vehicles
and Related Garage Equipment 154 - - - 154
310 Aircraft and Airport Equipment 9,399 - - - 9,399
311 Other Service Company
Property (3) - - - - -
----------------------------------------------------
SUB-TOTAL 165,986 11,791 - (2) 177,775
107 Construction Work in Progress (4) 19,263 28,312 11,791 - 35,784
----------------------------------------------------
TOTAL $185,249 $ 40,103 $11,791 $ (2) $213,559
====================================================
(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>
Balance at
Additions Close of
Subaccount Description Year
Microwave Equipment
General Office $141 $6,999
Computer Center 337 4,968
System Operations Center - 78
EDP Equipment
General Office 3,187 51,924
Computer Center 1,231 26,727
System Operations Center - 18,210
------ --------
TOTAL $4,896 $108,906
====== ========
(3) Describe other service company property:
(4) Describe construction work in progress: Primarily computer equipment,
computer software upgrades and leasehold improvements.
6 of 27 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Schedule III - Accumulated Provision for Depreciation and Amortization
of Service Company Property
(In Thousands)
Balance at Additions Other Balance
Beginning Charged to Changes Add at Close
Description of Year Account 403 Retirements (Deduct) (1) of Year
Account
<S> <C> <C> <C> <C> <C> <C>
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous Intangible Plant 6,290 2,542 (4) 8,828
304 Land and Land Rights
305 Structures and Improvements 889 212 - 30 1,131
306 Leasehold Improvements 3,205 916 - 113 4,234
307 Equipment 76,252 13,616 - (209) 89,659
308 Office Furniture and Fixtures 17,137 3,754 1 3 20,893
309 Automobiles, Other Vehicles
and Related Garage Equipment 619 6 - 4 629
310 Aircraft and Airport Equipment 4,775 834 - 35 5,644
311 Other Service Company
Property - - - - -
-------------------------------------------------------------
TOTAL $ 109,167 $21,880 $ 1 $ (28) $ 131,018
=============================================================
(1) Provide an explanation of those changes considered material:
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 Close of
of Year Year
Account 123 - Investment in Associate Companies $ - $ -
Account 124 - Other Investments - -
Account 136 - Temporary Cash Investments - - -
Money Pool (See Note 3)
Temporary Cash Investments - Federated 25,202 10,169
Investment
-------- ---------
TOTAL $ 25,202 $ 10,169
======== =========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 Close of
of Year Year
Account 146 - Accounts Receivable from
Associate Companies
See page 8-A $ 75,606 $ 101,987
---------- ----------
TOTAL $ 75,606 $ 101,987
========== ==========
Total
Payments
Analysis of Convenience or Accommodation
Payments:
See page 8-A $ 2,524
--------
TOTAL PAYMENTS $ 2,524
========
8 of 27 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Schedule V - Accounts Receivable from Associate Companies
(In Thousands)
Balance at Balance at
Description Beginning Close of
of Year Year
Account 146 - Accounts Receivable from Associate Companies
Entergy Arkansas, Inc. $ 12,115 $ 14,217
Entergy Louisiana, Inc. 20,323 21,787
Entergy Mississippi, Inc. 1,598 8,904
Entergy New Orleans, Inc. 3,633 8,523
Entergy Corporation 4,331 3,540
Entergy Operations, Inc. 3,946 2,914
Entergy Power, Inc. - 3,513
System Fuels, Inc. 53 160
System Energy Resources, Inc. 1,272 1,216
Entergy Enterprises, Inc. 5,937 3,945
Entergy Gulf States, Inc. 22,398 33,268
Money Pool - -
----------- ----------
TOTAL $ 75,606 $ 101,987
=========== ==========
Bulk Power Other
Payments Payments
Analysis of Convenience or Accommodation Payments:
Entergy Arkansas, Inc. $(101,747) $ -
Entergy Louisiana, Inc. 113,180 -
Entergy Mississippi, Inc. (51,226) -
Entergy New Orleans, Inc. 36,484 -
Entergy Corporation - -
Entergy Operations, Inc. - -
Entergy Power, Inc. 9,714 -
System Fuels, Inc. - -
Entergy Enterprises, Inc. - 2,524
Entergy Gulf States, Inc. 186,517 -
Nonassociated Companies (192,922) -
-------- ---------
$ - $ 2,524
======== =========
8 - A
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 Undistributed None None None
---------------------------
TOTAL $0 $0 $0
===========================
Summary:
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 Undistributed $ (1) $ (0) $ (1)
-----------------------------
TOTAL $ (1) $ (0) $ (1)
=============================
9 of 27 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 Close of
of Year Year
Account 174 - Miscellaneous Current and Accrued Assets
Unbilled Expenses and other receivables $ 512 $ 1,285
-------------------
TOTAL $ 512 $ 1,285
===================
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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.
Balance at Balance at
Description Beginning Close of
of Year Year
Account 186 - Miscellaneous Deferred Debits
Long Term Incentive Plan $ 10,193 $ 7,751
Miscellaneous Accounts Receivable Refund Clearing 207 (294)
Deferred costs for companies not yet billed 5 395
Non-Expense Accrued Labor (7) 479
Other - 86
---------------------
TOTAL $ 10,398 $ 8,417
=====================
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 $ -
=====
10 of 27 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Schedule XI - Proprietary Capital
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.
Description Amount
Account 211 - Miscellaneous Paid-in Capital None
Account 215 - Appropriated Retained Earnings None
----
TOTAL $0
====
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.
<TABLE>
<CAPTION>
Balance at Net Income Dividends Balance at
Description Beginning of -or (loss) Paid Close of
Year Year
<S> <C> <C> <C> <C>
Account 216 - Unappropriated None None None None
Retained Earnings
-----------------------------------------
TOTAL $0 $0 $0 $0
=========================================
11 of 27 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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.
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>
Account 223 - Advances from
Associate
Companies: None None None
Account 224 - Other Long-Term
Debt: None None None
--------------------------------------
TOTAL $0 $0 $0 $0
======================================
12 of 27 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C>
Account 233 - Notes Payable to Associate Companies
Money Pool $ 29,104 $ 62,156
----------------------
TOTAL $ 29,104 $ 62,156
======================
Account 234 - Accounts Payable to Associate Companies
Entergy Arkansas, Inc. $ 9,679 $ 14,975
Entergy Louisiana, Inc. 820 3,512
Entergy Mississippi, Inc. 5,787 4,706
Entergy New Orleans, Inc. 332 1,409
Entergy Gulf States, Inc. 247 2,461
Entergy Operations, Inc. - 1
Entergy Power, Inc 3,089 -
System Fuels, Inc. 1 -
System Energy Resources, Inc. 115 33
Money Pool Interest 217 375
------------------------
TOTAL $ 20,287 $ 27,472
========================
Account 242 - Miscellaneous Current and Accrued Liabilities
Accrued rent expense $ 7,587 $ 7,603
Accrued savings plan expense and withholdings (153) 153
Accrued severence pay - 1,404
Accrued claims liability 520 142
Row Transmission Liability 90 249
-----------------------
TOTAL $ 8,044 $ 9,551
=======================
</TABLE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 13-A thru 13-F
13 of 27 pages
<PAGE>
Schedule XIV - Notes to Financial Statements
For the Year Ended December 31, 1998
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities, and the reported amounts of revenues and expenses.
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.
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,
which range from 5 to 15 years. Amortization of leasehold
improvements is computed on a straight-line basis over the lease
term. Amortization of computer software is computed on a straight-
line basis over a 3 year term.
Income Taxes
Entergy Services accounts for income taxes pursuant to Statement
of Financial Accounting Standards No. 109 "Accounting for Income
Taxes" (SFAS 109). This standard requires that deferred income taxes
be recorded for all temporary differences between the financial
statement and tax basis of assets, liabilities, and loss
carryforwards. Additionally, such deferred income taxes are computed
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 (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 separate company income
tax returns for Louisiana, Washington D.C., and Texas.
13-A
<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.
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.
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.
NOTE 2. INCOME TAXES
Deferred income tax assets (liabilities) are comprised of the
following at December 31, 1998 and 1997 (in thousands):
1998 1997
Deferred Tax Assets:
Deferred compensation $3,475 $4,155
Operating reserves 13,390 9,829
Other (2,873) 1,402
----------------
Total 13,992 15,386
----------------
Deferred Tax Liabilities:
Property (7,105) (9,374)
----------------
Net Deferred Tax Assets $6,887 $6,012
================
The benefit associated with these deferred tax assets has been
or will be utilized in the Entergy Corporation consolidated return.
The ultimate realization of these deferred tax assets for Entergy
Services is dependent upon the allocation of the tax benefit from the
Entergy Corporation consolidated return.
13-B
<PAGE>
Entergy Services' effective income tax rate was 100% in 1998 and
1997 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. The provision for
intercompany expense (benefit) in lieu of federal income taxes for
the years ended December 31, 1998 and 1997 consisted of the following
(in thousands):
1998 1997
Current:
Federal $3,839 $12,835
State 455 704
-----------------------
Total 4,294 13,539
-----------------------
Deferred:
Federal (744) (6,553)
State (172) 2,543
-----------------------
Total (916) (4,010)
-----------------------
Total income tax expense $3,378 $9,529
=======================
NOTE 3. LINES OF CREDIT AND RELATED SHORT-TERM BORROWINGS
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 1998 or 1997.
In addition, Entergy Services had $60 million in unused bank lines of
credit at December 31, 1998 and 1997, 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 certain other companies 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 (dollars in thousands):
1998 1997
Average borrowing $63,057 $44,163
Maximum borrowing at month end $69,921 $50,041
Average effective interest rate:
During the year 5.7% 5.6%
At end of year 5.7% 6.3%
At December 31, 1998 and 1997, Entergy Services' temporary
borrowing position in the Money Pool was $62.2 million and $29.1
million, respectively.
13-C
<PAGE>
NOTE 4. EMPLOYEE BENEFITS
Employee Benefit 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, 1998, there were shares with a cost of
$7.8 million included in Other Deferred Debits for Entergy
Corporation common stock purchased related to the Equity Plan. Under
the Equity Plan in 1998 and 1997, Entergy Services recorded
compensation expense of $4.9 million and $1.7 million, respectively.
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% of the
participant's contribution to the extent that the total participant
contribution is less than or equal to 6% of the participant's
earnings as defined in the Savings Plan. In 1998 and 1997, Entergy
Services contributed $4.0 million and $3.9 million, respectively, to
the Savings Plan.
Retirement and Other Postretirement Benefit Plans
Eligible employees of Entergy Services are provided pension and
certain health care and life insurance benefits upon retirement.
Substantially all employees may become eligible for these benefits if
they reach retirement age while working for Entergy Services.
Eligible employees of Entergy Services participate in the
Entergy Corporation Retirement Plan for Non-Bargaining Employees.
This 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 plans
include common and preferred stocks, fixed income securities,
interest in a money market fund, and insurance contracts.
Total 1998 and 1997 pension and other postretirement costs for
Entergy Services, including capitalized amounts, included the
following components (in thousands):
Other Postretirement
Pension Benefits
1998 1997 1998 1997
Service cost $10,256 $8,551 $ 4,059 $ 2,830
Interest cost 12,823 10,795 4,281 3,097
Expected return on assets (7,331) (7,257) - -
Amortization of transition asset (167) (166) 704 704
Amortization of prior service cost 228 228 - -
Recognized net (gain)/loss - - 1,956 893
--------------------------------------
Net pension cost $15,809 $12,151 $11,000 $ 7,524
======================================
13-D
<PAGE>
<TABLE>
<CAPTION>
Other Postretirement
Pension Benefits
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Change in the Projected Benefit Obligation
(PBO)/Accumulated Postretirement
Obligation (APBO)
Balance at beginning of year $169,793 $ 115,637 $47,682 $ 34,635
Service cost 10,256 8,551 4,059 2,830
Interest Cost 12,823 10,795 4,281 3,097
Actuarial (gain)/loss 26,683 37,815 16,729 9,221
Benefits paid (3,286) (3,005) (2,288) (2,101)
-------------------------------------------
Balance at end of year $ 216,269 $169,793 $70,463 $47,682
===========================================
Change in Plan Assets
Fair value of assets at beginning of year $ 118,841 $ 87,281 $ - $ -
Actual return on plan assets 20,859 15,896 - -
Employer contributions 29,501 18,669 2,288 2,101
Benefits paid (3,285) (3,005) (2,288) (2,101)
-------------------------------------------
Fair value of assets at end of year $ 165,916 $118,841 $ - $ -
===========================================
Funded status $ (50,353) $(50,952) $(70,463) $(47,682)
Unrecognized transition (asset)/obligation (1,144) (1,311) 9,841 10,545
Unrecognized prior service cost 2,202 2,431 - -
Unrecognized net (gain)/loss 60,850 47,696 31,542 16,768
-------------------------------------------
Prepaid/(accrued) pension cost $ 11,555 $ (2,136) $(29,080) $(20,369)
===========================================
The significant assumptions used in computing the pension and
other postretirement information above were as follows:
1998 1997
Weighted -average discount rate 6.75% 7.25%
Weighted-average rate of increase in 4.6% 4.6%
future compensation levels
Expected long-term rate of return on 9.0% 9.0%
plan assets
The pension transition asset is being amortized over the greater
of the remaining service period or 15 years. The other
postretirement benefits transition obligation is being amortized over
20 years.
The assumed health care cost trend rate used in measuring the
other postretirement benefits' APBO was 6.0% for 1999, gradually
decreasing each successive year until it reaches 5.0% in 2006. A one
percentage-point increase in the assumed health care cost trend rate
for 1998 would have increased the APBO by $6,945,000 and increased
the sum of the service cost and interest cost by $1,180,000. A one
percentage-point decrease in the assumed health care cost trend rate
for 1998 would have decreased the APBO by $5,741,000 and decreased
the sum of the service cost and interest cost by $954,000.
13-E
<PAGE>
NOTE 5. LEASES
At December 31, 1998, Entergy Services had noncancelable
operating leases with minimum lease payments as follows (in
thousands):
1999 $18,121
2000 16,249
2001 15,417
2002 12,070
2003 9,539
Years thereafter 60,701
--------
$132,097
========
Rent expense amounted to approximately $36.3 million and $32.7
million for 1998 and 1997.
NOTE 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.
NOTE 7. 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 $8.4 million and
$1.1 million in 1998 and 1997, respectively.
NOTE 8. OTHER DEFERRED CREDITS
Other deferred credits (Account 253) consist principally of
accrued pension and postretirement benefit liabilities in both 1998
and 1997.
13-F
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Schedule XV Statement of Income
(In Thousands)
Account Description Current Year Prior Year
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies $ 566,384 $ 512,895
458 Services rendered to nonassociate companies 362 263
421 Miscellaneous income or loss - 17
------------------------
Total Income $ 566,746 $ 513,175
------------------------
EXPENSES - Income Statement
403 Depreciation Expense 19,338 19,227
404 Amortization of Limited-Term Electric Plant 2,542 734
4081 Taxes Other than Income-Utility Operations 17,042 17,965
4082 Taxes Other Than Income-Other Inc. & Deduc 118 22
4091 Income Taxes - Utility Operating Income 4,294 13,539
4101 Provision for Deferred Inc Tax-Utility Operating Income (875) (3,848)
4114 Investment Tax Credit Adjustments-Utility Operations (41) (162)
416 Cost/Expense-Mdse, Job, Contract Work 1,763 142
4171 Expenses - Nonutility Operations 65 -
419 Interest & Dividend Income - -
4261 Donations 152 92
4263 Penalties 115 -
4264 Expenditures-Civic, Political, and Related Activities 2,837 3,426
4265 Other Deductions 4,674 4,371
430 Interest on Debt to Associate Companies 3,662 2,508
431 Other Interest Expense 49 43
500-557 Power Production 36,346 39,097
560-574 Transmission & Distribution 16,844 18,950
580-598 Distribution Expense 18,602 20,692
850-894 Gas Operations 447 508
901-905 Customer Accounts 35,009 41,728
906-910 Customer Service & Informational Expenses 12,114 17,834
911-917 Sales Expenses 34,954 31,438
920 Administration & General Salaries 99,938 89,334
921 Office Supplies and Expenses 22,698 27,634
923 Outside Services Employed 66,077 56,783
924 Property Insurance Expense 607 370
925 Injuries & Damages Expense 2,258 2,078
926 Employee Pension & Benefits 42,103 31,795
928 Regulatory Commission Expense 8,139 1,349
9301 General Advertising Expenses 1,016 1,507
9302 Miscellaneous General Expense (123) 927
931 Rents 34,246 34,331
935 Maintenance of General Plant 9,466 4,448
------------------------
Total Expenses - Income Statement $ 496,476 $ 478,862
------------------------
EXPENSES - Balance Sheet
-
107EXP Capital Charges to Expense 61,231 27,277
184EXP Other Balance Sheet Charges to Expense 9,039 7,036
------------------------
Total Expenses - Balance Sheet $ 70,270 $ 34,313
========================
Net Income or (Loss) $ - $ -
========================
14 of 27 pages
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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
Entergy Arkansas, Inc. $ 89,697 $14,939 $ - $ 104,636
Entergy Gulf States, Inc. 113,761 19,782 - 133,543
Entergy Louisiana, Inc. 96,933 17,513 - 114,446
Entergy Mississippi, Inc. 55,924 9,084 - 65,008
Entergy New Orleans, Inc. 39,260 6,572 - 45,832
Entergy Corporation 27,445 6,143 - 33,588
System Fuels, Inc. 836 226 - 1,062
Entergy Enterprises, Inc. 16,624 4,001 - 20,625
Entergy Operations, Inc. 36,874 9,980 - 46,854
Entergy Power, Inc. 441 119 - 560
Deferred 230 - - 230
----------------------------------------
TOTAL $478,025 $88,359 $ - $566,384
========================================
15 of 27 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 Company Charged Charged of Capital Cost Deficiency Billed
<S> <C> <C> <C> <C> <C> <C>
Entergy Aviation Services $ 74 $ 110 $ - $ 184 $ - $ 184
Chase Manhattan 178 - - 178 - 178
----------------------------------------------------------
TOTAL $ 252 $ 110 $ - $ 362 $ - $ 362
==========================================================
16 of 27 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 Company Charges Nonassociated 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
EXPENSES - Income Statement
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
403 Depreciation Expense $ - $ 19,338 $ 19,338 $ - $ - $ - $ - $ 19,338 $ 19,338
404 Amortization of Limited-Term
Electric Plant - 2,542 2,542 - - - - 2,542 2,542
4081 Taxes Other than Income-Utility
Operations 14,241 2,783 17,024 12 6 18 14,253 2,789 17,042
4082 Taxes Other Than Income-Other Inc.
& Deduc 118 - 118 - - - 118 - 118
4091 Income Taxes - Utility Operating
Income 4,294 - 4,294 - - - 4,294 - 4,294
4101 Provision for Deferred Inc
Tax-Utility Operating Income (875) - (875) - - - (875) - (875)
4114 Investment Tax Credit
Adjustments-Utility Operations (41) - (41) - - - (41) - (41)
416 Cost/Expense-Mdse, Job, Contract Work 1,762 1 1,763 - - - 1,762 1 1,763
4171 Expenses - Nonutility Operations 65 - 65 - - - 65 - 65
419 Interest & Dividend Income - - - - - - - - -
4261 Donations 97 55 152 - - - 97 55 152
4263 Penalties 115 - 115 - - - 115 - 115
4264 Expenditures-Civic, Political,
and Related Activities 2,837 - 2,837 - - - 2,837 - 2,837
4265 Other Deductions 4,658 16 4,674 - - - 4,658 16 4,674
431 Other Interest Expense 49 - 49 - - - 49 - 49
500-557 Power Production 34,986 1,360 36,346 - - - 34,986 1,360 36,346
560-574 Transmission & Distribution 16,564 280 16,844 - - - 16,564 280 16,844
580-598 Distribution Expense 18,089 513 18,602 - - - 18,089 513 18,602
850-894 Gas Operations 445 2 447 - - - 445 2 447
901-905 Customer Accounts 34,683 326 35,009 - - - 34,683 326 35,009
906-910 Customer Service & Informational
Expenses 11,898 216 12,114 - - - 11,898 216 12,114
911-917 Sales Expenses 34,552 402 34,954 - - - 34,552 402 34,954
920 Administration & General Salaries 79,709 19,997 99,706 154 78 232 79,863 20,075 99,938
921 Office Supplies and Expenses 15,224 7,431 22,655 32 11 43 15,256 7,442 22,698
923 Outside Services Employeed 60,938 5,129 66,067 10 - 10 60,948 5,129 66,077
924 Property Insurance Expense 603 4 607 - - - 603 4 607
925 Injuries & Damages Expense 2,109 149 2,258 - - - 2,109 149 2,258
926 Employee Pension & Benefits 39,105 2,952 42,057 33 13 46 39,138 2,965 42,103
928 Regulatory Commission Expense 8,139 - 8,139 - - - 8,139 - 8,139
9301 General Advertising Expenses 1,008 8 1,016 - - - 1,008 8 1,016
9302 Miscellaneous General Expense 1,125 (1,248) (123) - - - 1,125 (1,248) (123)
931 Rents 11,053 23,189 34,242 3 1 4 11,056 23,190 34,246
935 Maintenance of General Plant 6,653 2,804 9,457 8 1 9 6,661 2,805 9,466
-------------------------------------------------------------------------------------
Total Expenses - Income Statement $404,203 $ 88,249 $492,452 $ 252 $ 110 $ 362 $404,455 $ 88,359 $492,814
-------------------------------------------------------------------------------------
EXPENSES - Balance Sheet
107EXP Capital Charges to Expense 61,231 - 61,231 - - - 61,231 - 61,231
184EXP Other Balance Sheet Charges to Expense 9,077 (38) 9,039 - - - 9,077 (38) 9,039
-------------------------------------------------------------------------------------
Total Expenses - Balance Sheet $ 70,308 $ (38) $ 70,270 $ - $ - $ - $ 70,308 $ (38) $ 70,270
-------------------------------------------------------------------------------------
TOTAL EXPENSES $474,511 $88,211 $562,722 $ 252 $ 110 $ 362 $474,763 $ 88,321 $563,084
-------------------------------------------------------------------------------------
Compensation for use of Equity Capital - - - - - - - - -
430 Interest on Debt to Associate Companies 3,662 - 3,662 - - - 3,662 - 3,662
-------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $478,173 $88,211 $566,384 $ 252 $ 110 $ 362 $478,425 $ 88,321 $566,746
=====================================================================================
17 of 27 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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).
DEPARTMENT OR SERVICE FUNCTION Trans-
Account Total External/ Human Resources Information action
Number Description of Items Amount Overhead Govt Affairs Communications Legal & Administration Technology Center
EXPENSES - Income Statement
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
403 Depreciation Expense $ 19,338 $ - $ - $ - $ - $ (18) $ - $ 19,356
404 Amortization of Limited-
Term Electric Plant 2,542 - - - - - - 2,542
4081 Taxes Other than Income-
Utility Operations 17,042 2,569 45 230 409 832 2,855 490
4082 Taxes Other Than Income-
Other Inc. & Deduc 118 117 - - 1 - - -
4091 Income Taxes - Utility
Operating Income 4,294 4,294 - - - - - -
4101 Provision for Deferred Inc
Tax-Utility Operating Income (875) (875) - - - - - -
4114 Investment Tax Credit
Adjustments-Utility Operations (41) (41) - - - - - -
416 Cost/Expense-Mdse, Job,
Contract Work 1,763 - - - 22 (1) - -
4171 Expenses - Nonutility Operations 65 - - - 1 - - -
419 Interest & Dividend Income - - - - - - - -
4261 Donations 152 12 5 67 - 1 - -
4263 Penalties 115 49 - - - - - -
4264 Expenditures-Civic,
Political, and Related
Activities 2,837 34 2,251 - - 2 - -
4265 Other Deductions 4,674 21 529 270 93 40 5 21
430 Interest on Debt to
Associate Companies 3,662 3,662 - - - - - -
431 Other Interest Expense 49 41 - - - - - -
500-557 Power Production 36,346 59 - (4) 6 81 26 -
560-574 Transmission & Distribution 16,844 4 - - - 9 18 -
580-598 Distribution Expense 18,602 18 - - (1) 59 13 -
850-894 Gas Operations 447 - - - - 3 - -
901-905 Customer Accounts 35,009 - - - - 80 - -
906-910 Customer Service &
Informational Expenses 12,114 2 - 311 - 219 - -
911-917 Sales Expenses 34,954 128 - - 1 70 1 -
920 Administration & General
Salaries 99,938 11,754 541 2,936 5,139 9,386 34,442 6,089
921 Office Supplies and Expenses 22,698 2,214 137 774 672 3,061 10,359 396
923 Outside Services Employeed 66,077 2,213 3,054 1,102 5,465 5,427 37,118 641
924 Property Insurance Expense 607 - - - - - - 4
925 Injuries & Damages Expense 2,258 - - - 1 1 - -
926 Employee Pension & Benefits 42,103 2,192 524 95 197 31,057 1,526 272
928 Regulatory Commission Expense 8,139 - 495 27 1,548 109 179 367
9301 General Advertising Expenses 1,016 1 - 703 - 141 - -
9302 Miscellaneous General Expense (123) 866 1 5 9 46 10 47
931 Rents 34,246 2,043 9 23 127 23,893 7,540 153
935 Maintenance of General Plant 9,466 435 - 9 - 2,834 6,143 -
EXPENSES - Balance Sheet
107EXP Capital Charges to Expense 61,231 - - 13 38 781 26,545 26
184EXP Other Balance Sheet
Charges to Expense 9,039 9 - 85 14 135 574 (1)
--------------------------------------------------------------------------------------------
$566,746 $ 31,821 $ 7,591 $ 6,646 $ 13,742 $ 78,248 $ 127,354 $ 30,403
============================================================================================
18 of 27 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Schedule XVII - Schedule of Expense Distribution by Department or
Service Function
(In Thousands)
DEPARTMENT OR SERVICE FUNCTION
Planning, Chief Non-
Account Control Financial Retail Domestic Regulated Regulated
Number Description of Items Tax & Reporting Officer Services Operations Nuclear Operations Operations
EXPENSES - Income Statement
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
403 Depreciation Expense $ - $ - $ - $ - $ - $ - $ - $ -
404 Amortization of Limited-Term Electric
Plant - - - - - - - -
4081 Taxes Other than Income-Utility
Operations 158 713 102 1,042 545 543 6,509 -
4082 Taxes Other Than Income-Other Inc. & Deduc - - - - - - - -
4091 Income Taxes - Utility Operating Income - - - - - - - -
4101 Provision for Deferred Inc Tax-
Utility Operating Income - - - - - - - -
4114 Investment Tax Credit Adjustments-
Utility Operations - - - - - - - -
416 Cost/Expense-Mdse, Job, Contract Work - - - 1,742 - - - -
4171 Expenses - Nonutility Operations - - - 43 - - 21 -
419 Interest & Dividend Income - - - - - - - -
4261 Donations - 50 - 2 3 - 12 -
4263 Penalties 67 - - - - - (1) -
4264 Expenditures-Civic, Political, and
Related Activities - - - - 549 - 1 -
4265 Other Deductions 10 233 2 198 3,162 16 74 -
430 Interest on Debt to Associate Companies - - - - - - - -
431 Other Interest Expense 1 7 - - - - - -
500-557 Power Production - - - - - 4,916 31,262 -
560-574 Transmission & Distribution - - - 4 - - 16,809 -
580-598 Distribution Expense - 2 - 13 - - 18,498 -
850-894 Gas Operations - - - 1 - - 443 -
901-905 Customer Accounts - - - 336 - - 34,593 -
906-910 Customer Service & Informational Expenses - 1,179 - 5,631 - - 4,772 -
911-917 Sales Expenses - (26) - 15,036 - - 19,744 -
920 Administration & General Salaries 2,047 7,422 1,265 2,857 5,802 2,373 7,885 -
921 Office Supplies and Expenses 380 1,725 507 232 1,174 182 885 -
923 Outside Services Employeed 5,969 873 665 6 1,770 29 1,745 -
924 Property Insurance Expense - 604 - - - - (1) -
925 Injuries & Damages Expense - 965 - - - 2 1,289 -
926 Employee Pension & Benefits 74 358 276 441 351 613 4,127 -
928 Regulatory Commission Expense 62 387 - 440 3,336 43 1,146 -
9301 General Advertising Expenses 1 39 - - 111 - 20 -
9302 Miscellaneous General Expense 14 (1,228) - - 9 43 55 -
931 Rents 3 62 13 177 86 - 117 -
935 Maintenance of General Plant - - - 32 - - 13 -
EXPENSES - Balance Sheet
107EXP Capital Charges to Expense - 1 - 33 1 335 33,448 10
184EXP Other Balance Sheet Charges to Expense - - - 72 9 168 7,974 -
----------------------------------------------------------------------------------
$ 8,786 $ 13,366 $ 2,830 $28,338 $ 16,908 $ 9,263 $191,440 $ 10
==================================================================================
19 of 27 pages
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Departmental Analysis of Salaries
(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
See page 20-A $219,405 $13,516 $ 205,767 $ 122 3,028
--------------------------------------------------
TOTAL $219,405 $13,516 $ 205,767 $ 122 3,028
==================================================
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(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 20-B thru 20-K $115,966
--------
TOTAL $115,966
========
20 of 27 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Departmental Analysis of Salaries
(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>
Overhead $ 11,881 $ 7,469 $ 4,400 $ 12 35
External/Governmental Affairs 1,414 237 1,177 - 11
Communications 3,277 562 2,715 - 50
Legal 5,438 521 4,917 - 74
Human Resources & Administration 10,814 419 10,285 110 180
Information Technology 41,072 29 41,043 - 655
Transaction Center 6,457 234 6,223 - 129
Tax 2,109 104 2,005 - 34
Planning, Control & Reporting 9,164 1,910 7,254 - 116
Chief Financial Officer 1,224 238 986 - 2
Retail Services 13,874 109 13,765 - 170
Domestic Operations 7,645 1,492 6,153 - 96
Nuclear 7,163 13 7,150 - 78
Regulated Operations 97,873 179 97,694 - 1,398
--------------------------------------------------
TOTAL $219,405 $13,516 $ 205,767 $ 122 3,028
==================================================
20 - A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased * Associate Amount
OUTSIDE SERVICES - LEGAL
<S> <C> <C>
Adams & Reese NA $ 83
Baird Holm Mceachen Pedersen NA 168
Baker & Botts Llp NA 228
Balch & Bingham Attys And Counselors NA 107
Bickerstaff Heath & Smiley Llp NA 962
Clark Thomas & Winters Attorneys NA 305
Doyle & Bachman NA 48
Friday Eldredge & Clark NA 58
Gardner Carton & Douglas NA 40
Germer & Gertz Llp NA 100
Gordon Arata McCollum & Duplantis NA 84
Kullman Firm NA 47
Liskow & Lewis NA 37
Louis Lambert Attorney NA 150
McCalla Thompson Pyburn Hymowitz & Shapiro NA 115
McDermott Will & Emery NA 311
Milbank Tweed Hadley & Mccoy NA 103
Mitchell Williams Selig Gate & Woodyard Pllc NA 65
Morgan Lewis & Bockius Llp NA 708
Murov & Ward Plc NA 55
Phelps Dunbar Llp Atty At Law NA 292
Reid & Priest Llp NA 117
Ric Group Administrative Fund Dba Mccarter & English Atty NA 33
Sidley & Austin NA 106
Simon Peragine Smith & Redfearn Llp NA 26
Skadden Arps Slate Meagher & Flom NA 1,277
Stanley & Flanagan Llc NA 125
Steeg & O'Connor Llc NA 62
Steptoe & Johnson Atty At Law NA 185
Taggart Morton Ogden Staub Rougelot Et Al NA 160
Thelen Reid & Priest Llp NA 33
Trotter Law Firm Pa NA 136
Wiley Rein & Fielding NA 30
Williams & Anderson Attys NA 127
Winston & Strawn NA 272
Wise Carter Child & Caraway NA 842
Wright & Talisman Attys At Law NA 77
Wright Lindsey & Jennings NA 201
Others (60) NA 274
------
Total $8,149
------
20 - B
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
OUTSIDE SERVICE - PROFESSIONAL CONTRACT SERVICES
<S> <C> <C>
Abernathy Macgregor Frank Inc NA $ 69
Accelerated Development Systems Inc NA 236
Actuarial Sciences Assoc Inc NA 306
Addison Corp Annual Report NA 71
Alexis Driscoll NA 42
Alliance For Competitive Electricity Ace NA 103
Alma M Williams NA 44
American Teleconferencing NA 28
Analysis Group Economics Inc NA 137
Andersen Consulting Llp NA 4,666
Anixter Inc NA 238
Archie Manning NA 31
Arizona State University NA 30
Arthur Andersen & Co Andersen Consulting NA 602
Ascend Performance Solutions NA 61
Assn Of Electric Co Of Tx Inc NA 185
Asymetrix Corp NA 29
AT Kearney NA 343
AT&T NA 432
Atest Consultants Inc NA 165
Baker Engineering NA 1,912
Baton Rouge Tree Service Inc NA 30
Battelle Pacific Northwest Div NA 61
Becker Printing Co NA 25
Bellsouth Telecommunications NA 32
Berliner Assoc NA 30
Black & Veatch Llp NA 69
Blue Ridge Enterprises Inc NA 150
Bowne Llp NA 37
Bryan Assoc Inc NA 180
Burson Marsteller NA 65
C Lyle Barney Consulting Service NA 65
Cambridge Reports Research Intl NA 232
Carson Group Inc NA 50
Cegelec Esca NA 355
Chatham Partners Inc NA 457
Checkfree Corp NA 30
Cole Publications NA 123
Commonwealth Films Inc NA 26
Communispond Inc NA 47
Compuware Corp NA 82
Concept Development Inc NA 78
20 - C
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
Concorde NA $ 56
Consumers First NA 282
Continental Traffic Service Inc NA 179
Control Risks Limited NA 27
Conway Consulting NA 281
Coopers & Lybrand Llp NA 4,509
Cps Direct Inc NA 29
Cranford Johnson Robinson Woods NA 90
Creative Communications Inc NA 30
CSC Consulting NA 5,913
Data Transit Intl NA 108
Database Consultants Inc NA 438
Davis Polk & Wardwell NA 161
Day Detectives Inc NA 27
Deloitte & Touche Llp NA 67
Det Norske Veritas Industry NA 155
Diagnostic Research Intl Inc NA 69
Digital Equipment Corp NA 942
Diskcovery NA 48
Dmrs Group Inc NA 43
Don F Cass NA 69
Donn Young Photography Inc NA 91
Drake Beam Morin Inc NA 32
Dun & Bradstreet NA 194
Dwayne E Walls NA 37
E Source Inc NA 91
Econat Inc NA 469
Edison Electric Institute NA 57
Enernomics Inc NA 41
EPRI NA 167
Equifax Credit Info Services The Credit Bureau Inc. NA 137
Ernst & Young NA 320
Executive Solutions NA 51
Expertelligence Inc NA 33
Farwell Group NA 28
Financial Concepts & Applications Inc NA 52
Financial Relations Board Inc NA 83
Fisher Sheehan & Colton NA 150
Fitch Ibca Inc NA 40
Flake Wilkerson Market Insight Llc NA 68
Franklin Covey NA 36
Frederick Schneiders Research NA 59
Freeport McMoRan Inc Dba FM Services Co NA 164
Fry Consultants NA 43
Ga Tech Research Corp Grtc NA 102
20 - D
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
Gager & Assoc NA $ 39
Gartner Group Inc NA 335
General Electric NA 212
General Reliability NA 63
Georgine K Berthelot NA 88
Geoscience Engineers Llc NA 26
Goodyear Capital Corp NA 104
Hallmark Business Espressions NA 238
Harvey Press Inc NA 136
Hewitt Assoc Llc NA 134
Hooper Hooper Owen & Gould NA 184
Huey T Littleton Claims NA 170
Hunter Business Consulting NA 29
IBM Corp NA 7,194
Independent Dealer Services Inc NA 126
Infinity Data Systems Inc NA 392
Information Intellect Inc NA 53
Information Solutions Group Inc NA 32
Inter Media Marketing Inc NA 38
Intercede Inc NA 722
Intersearch Corp NA 1,660
Itron Inc NA 192
J Walter Thompson Usa Inc NA 257
JA Wright & Associates Inc NA 583
Jim Rubin NA 84
JRA Assoc NA 153
Kase & Co Inc NA 71
KFG Inc NA 158
Korn Ferry Intl NA 68
KPMG Peat Marwick Llp NA 183
Kurant Direct Inc NA 241
KW Huskey Assoc NA 30
L&R Adjustment Co Inc NA 62
Lexis Nexis NA 60
LGK Assoc Inc NA 36
Lloyd Schuh Advertising Inc NA 46
Ma Institute Of Technology NA 169
Manatech Management Technologies Inc NA 84
Margaret McCloskey NA 30
Marion E Council Pe NA 51
Market Strategies Inc NA 76
McKinsey & Co Inc NA 3,201
MCS Group NA 337
Media Vision NA 26
Metco Environmental Inc NA 120
20 - E
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
Metzler & Assoc Mgmt Consultants NA $ 260
Microstrategy Inc NA 441
Morgan Stanley & Co Inc NA 161
Ms Claims Service Inc NA 44
Natl Economic Research Assoc Inc NA 45
Natl Education Training Group (Net G) NA 72
Natl Environmental Strategies NA 206
Neos Corporation NA 26
Network Direct Inc NA 209
Nola Computer Services Inc NA 644
Norstan Communications Inc NA 145
Northbridge Group NA 937
Oracle Corp NA 108
Pace Systems Pace Sound Lighting Inc NA 51
Parker & Assoc NA 116
Parviz Rastgoufard Phd Pe NA 59
Personnel Research Assoc Inc Pra Inc NA 58
Petrocon Engineering Inc NA 366
Philip R Sharp NA 61
Pittman Portis Communications NA 40
PPM Inc NA 165
Press Association Inc NA 34
PricewaterhouseCoopers NA 936
Productivity Point Intl NA 860
Prosper Business Development NA 115
Psychological Services Inc NA 34
Public Strategies Inc NA 747
Putnam Hayes & Bartlett Inc NA 405
R Duffy Wall & Assoc NA 154
Raytheon Engineers & Constructors Inc NA 219
Repeal Puhca Now Coalition NA 154
Rhonda R Hunt NA 30
RHR Intl Co NA 684
Richmark Research NA 115
RKS Research & Consulting NA 90
RLW Analytics NA 34
Roper Starch Worldwide Inc NA 441
Roy A Giangrosso NA 48
Saterley Consulting NA 80
Savitz Research Center Inc NA 547
Scientech Inc NA 51
Seth Ginsburg NA 55
Shaver Direct Inc NA 65
Sherri McConnell NA 61
Shipley & Assoc Inc NA 37
20 - F
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
Sir Speedy NA $ 52
Software & Scanning Services NA 95
Software Innovators Inc NA 41
Software Systems Development Corp NA 55
Southern Media & Opinion Research Inc NA 54
Spectra Inc NA 424
SPL Laboratories NA 35
Strauss Radio Strategies Inc NA 49
Sun Microsystems Inc NA 40
Swedish Transmission Research Institute NA 58
Synergy Marketing Assoc NA 67
Target Vision Inc NA 54
Team Housing Solutions NA 34
Technology Partners Inc NA 807
Theodore Barry & Assoc NA 1,007
Think New Ideas Inc NA 568
Thoma & Thoma Creative Service NA 285
Timothy J Ostrowski NA 27
Tivoli Systems Inc NA 102
TJ H2B Analytical Services Inc NA 34
Transform IT Inc NA 292
Tx Perspectives Inc NA 60
Universal Weather & Aviation NA 45
University Of Pa NA 201
Utilitree Carbon Co Inc NA 40
Utility Analysts Inc NA 40
Utility Systems Services Inc NA 186
Utility Translation Systems Inc NA 39
Vanguard Communications Corp NA 81
VCI Intl NA 73
Verdi & Co Inc NA 50
Virtual Solutions Inc NA 267
W9 Trinet Poydras Llc NA 48
Wefa Group Inc NA 66
William M Mercer Meidinger Hansel Corp NA 65
Williamson Printing Corp NA 148
Woodson Inc NA 300
Woodward Clyde Consultants NA 88
Wyatt Co NA 193
Xerox Business Corp NA 103
Others (708) NA 2,178
-------
Total $64,976
-------
20 - G
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
OUTSIDE SERVICE - CONTRACT/DESIGN ENGINEERING
<S> <C> <C>
Cetrom Consulting Engineering Inc NA $ 121
Fact Based Management Inc NA 2,634
General Physics Corp NA 520
Marrero Couvillon & Assoc Inc NA 38
McDermott Will & Emery NA 485
Sizeler Architects NA 41
Wink Engineering NA 462
Others (8) NA 26
----------
Total $ 4,327
----------
OUTSIDE SERVICE - TEMPORARY EMPLOYEE SERVICES
Aerotek Inc NA $ 2,146
AM PM Temporary Services Inc NA 63
American Personnel & Temps Inc NA 282
Amicus Legal Staffing Inc NA 43
Annette R Walker NA 88
Apogee Software Systems Inc NA 557
Applied Computer Engineering Technology NA 94
Ascent Consulting Group Inc NA 170
Aura Energy Corp NA 1,322
Austin Software Foundry NA 184
Brooke Personnel Services Inc NA 101
Ca Consultants Int Ltd NA 68
Comdisco Disaster Recovery Service Inc NA 391
Computer Merchant Ltd NA 34
Computer Professionals Inc NA 800
Context Integration NA 136
Crestone Intl Llc NA 30
Cross Country Staffing NA 47
Daley Tower Service Inc NA 51
Data Edge Inc NA 190
David Lousteau NA 57
Davis Harmon Group Inc NA 256
Dell Marketing Corp NA 28
Diamond Data Systems Inc NA 1,188
Diversified Computer Consultants Llc NA 2,639
Documentum Inc NA 60
Elite Personnel Service Inc NA 186
Enterprise Resource Mgmt Inc NA 84
Express Personnel Services Inc NA 571
Ezware NA 29
20 - H
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
Frontier Systems Inc NA $ 34
Geodata Solutions Inc NA 98
Global Dynamics Inc NA 332
Green Goblin Unlimited NA 42
HC Assoc NA 82
Highland Group Inc The NA 1,071
Information Technology Staffin NA 36
Intellimark Inc NA 233
Interlynx Technology NA 128
Karls Hamlin Dba Ks Hamlin & Assoc NA 105
Kelly Services Inc NA 1,873
Kenneth Tong NA 30
Lodestar Corp NA 47
London Electricity Plc A 48
Lucille F Griffin NA 26
Manpower Temporary Services NA 749
Metamor Information Technology Services NA 565
Mitem Corp NA 365
Norrell Services Inc NA 57
NTS Technical Services Inc Div of S&W Tech Services NA 898
Paranet Inc NA 130
Patrick K Maher NA 45
PeopleSoft NA 945
Plangraphics Inc NA 316
PMCC Inc NA 166
Powercerv NA 29
Priority Communications NA 127
Pro Staff NA 56
Recon Technologies Inc NA 241
Sapient Corp NA 846
Security Center Ltd NA 61
Seek Consulting Group Inc NA 263
Source Services Corp NA 57
Special Counsel NA 52
Sprint Paranet Inc NA 1,146
Staffmark NA 994
Telephone & Computer Wiring NA 116
Teraquest Metrics Inc NA 182
Transform It Inc NA 255
Tri Com Technical Services NA 130
TRW Inc NA 42
Ultimate Marketing Inc NA 1,348
VLFR Consulting Service Inc NA 104
Wooley Contract Services Inc Wcs Inc NA 48
Others (115) NA 204
--------
Total $ 26,617
--------
20 - I
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
OUTSIDE SERVICE - OTHER
<S> <C> <C>
American Building Maintenance NA $ 210
American Citadel Guard Inc NA 178
American Express NA 48
American Payment Systems Inc NA 26
Arthur D Little Inc NA 60
Banctec Service Corp NA 88
Barts Office Furniture Repairs Inc NA 142
Bayou Cadd Inc NA 33
Broom Parrott & Assoc NA 36
Central Ms Telephone Service NA 38
Computer Conditioning Corp NA 29
Control Data Corp NA 74
Corp Express Delivery Systems NA 256
Corporate Express Delivery Sys Tem NA 618
Crown Electric Inc NA 47
Crown Roofing Services Inc NA 113
CS & Associates NA 52
Dan Gray Consulting Inc NA 113
Dana Corporation NA 173
Electrical Engineering Professional Services Inc NA 109
Electronic Systems Usa Inc NA 44
Fitness Expo NA 62
Fluor Daniel Inc NA 434
Frost Barber Inc NA 197
Fuelman NA 225
Goldman Sachs & Co NA 69
Harris Canada NA 31
Harvey Construction Co Inc NA 42
HB Neild & Sons Inc NA 147
Health Fitness Corp NA 91
Herbert Odonnell Inc NA 84
Hy Tech Roofing Services Inc NA 76
Independent Consultant Services Inc NA 25
Interactive Systems Intl NA 36
Irby Construction Co Corp NA 55
Jackson Communications Inc NA 54
Johnson Bailey Henderson Mcneel NA 194
Landis & Gyr Energy Management Inc NA 224
Landis & Staefa NA 48
Lantrip Construction Co Inc NA 93
Laser Cartridge Rechargers Inc NA 34
Linesoft NA 610
Looney & Assoc NA 40
Lumberton Tower Service Lts Inc NA 29
Mail Box Inc NA 137
20 - J
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
Main NA $ 70
Malouf Construction NA 61
Management 21 Inc NA 152
Marriott Hotel Services Inc NA 1,010
Marvin Electric Service Inc NA 204
Master Mechanical Contractors Inc NA 251
Montgomery Elevator Co NA 39
Motorola Communications & Elec Tronics Inc. NA 61
Nec America Inc NA 38
Nolan Battery Co Inc NA 51
Nolmar Servicemaster NA 192
Office Depot NA 45
Opex Corp NA 49
Otcs Inc Telecommunication & Cabling Sv NA 27
Periphonics Corp NA 156
Pinkerton Security & Investigation Services Corp NA 88
Quality Technical Services Inc NA 73
Quick Courier Services Inc NA 171
Reed Service Co Inc NA 26
Research Electronics Intl Llc NA 42
Riverbend Moving & Storage NA 71
Servicemaster Of New Orleans NA 71
Shimon Awerbuch Phd NA 652
Sun Interiors Ltd NA 85
System Management Software Inc NA 99
Tlg Services Inc NA 32
Todays Office NA 131
Todd Electric Inc NA 220
Tomba Communications & Electro Nics Inc NA 72
Total Safety NA 54
Turf Scape Weed Control Inc NA 44
Tx Industrial Contractors Inc NA 151
Vanstar Corp NA 176
Vegetation Management Specialist Inc NA 25
Vinson Guard Service Inc NA 335
Wackenhut Corp NA 29
Williamson & Son Janitorial Services Inc NA 30
Others (501) NA 1,290
--------
Total $11,897
--------
Grand total $115,966
--------
* The activity shown here may be duplicated in the "Other Deductions -
Account 426.5" Schedule or the "General Advertising Expenses
- Account 930.1" Schedule.
20 - K
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Employee Pensions and Benefits
(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 $ 14,917
Savings Plan 4,237
Pension Plans 14,797
Employee Meetings/Functions/Awards 2,291
Educational Reimbursement 434
Post Retirement Plan Benefits 8,153
Executive Supplemental Pension 4,334
Employee Stock Investment Plan 894
Other 119
-----------
TOTAL $ 50,176
===========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
General Advertising Expenses - Account 930.1
(In Thousands)
<TABLE>
<CAPTION>
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
<S> <C> <C>
Advertising in Newspapers, periodicals, Amos Tuck School Of Business Admin $ 4
billboards, radio, etc. Archbishop's Community Appeal 5
Chemekete Recreational Club Inc 8
Cleco Corporation 6
Clout Ministerial Alliance Inc 8
Coogan Crawford & Assoc Inc 29
Edies Popped Corn 3
Gulf South Minority Supplier Development Council 8
Hands Inc 8
Hearst Corp 5
JWG Assoc Inc 31
La Assn Of Broadcasters 4
La Tech University 4
Le Meridien New Orleans 8
Minority Business News USA 5
New Orleans Saints 8
21 of 27 Pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
General Advertising Expenses - Account 930.1
(In Thousands)
Description Name of Payee Amount* Amount
<S> <C> <C>
Advertising in Newspapers, periodicals, New Orleans Zephyrs Baseball $ 52
billboards, radio, etc. Nokia Sugar Bowl 11
Systems Consultants Assoc Inc 5
Times Picayune 8
US West Education Foundation 10
VCI Intl 21
Veterans Observer 4
WWL AM Sinclair Radio of N. O. 67
Advertising Matter such as Posters, Bulletins American Productivity & Quality Center Inc 8
booklets and related items Photo Images, Inc. 4
Solitaire Corp 18
Fees and expenses of advertising agencies and Independent Media Sales & Svcs 5
commercial artists J Walter Thompson USA Inc 135
J&J Specialty Advertising 16
Joe Gould Advertising Specialties Inc 35
Media Vision 44
Silas Cooper Iii & Atty Silas Cooper Jr 76
Thoma & Thoma Creative Service 10
White Advertising Specialty Inc 13
Printing of Booklets, Dodgers, Bulletins, etc. Harvey Press Inc 97
Mail Tech Inc 34
McKenna Publishing Co 6
Towery Publishing Inc 3
Supplies & Expenses in Preparing Advertising Atlantic Envelope 4
Materials Ikon Office Solutions 4
Jon D Kennedy 9
Employee expenses Payroll 15
Others Others (219) 158
-------
TOTAL $ 1,016
=======
* The activity shown here may be duplicated in the "Outside
Services Employed" Schedule.
21 - A
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Miscellaneous General Expenses
(In Thousands)
Instructions:
Provide a listing of the amount included in "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 $ 2,281
Employee relocation and outplacement 6,073
Applicant expenses 2,179
Industry Association Dues / Corporate Memberships 4,537
Other corporate expenses 504
---------
TOTAL $ 15,574
=========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Rents
(In Thousands)
Instructions.
Provide a listing of the amount included "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
Building & Property $ 24,262
Equipment & Facilities 3,825
Computer hardware 7,046
Computer software 1,124
----------
TOTAL $ 36,257
==========
22 of 27 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Taxes Other Than Income Taxes
(In Thousands)
Instructions:
Provide an analysis of "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
Taxes Other Than U.S. Government Taxes
Property taxes $ 2,517
Unemployment taxes 629
Other taxes (34)
----------
Total $ 3,112
----------
U.S. Government Taxes
FICA taxes $ 15,115
Unemployment taxes 209
----------
Total $ 15,324
----------
TOTAL $ 18,436
==========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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.
<TABLE>
<CAPTION>
Name of Recipient Purpose of Donation Amount
<S> <C> <C>
Donations:
University of Texas at Austin Ctr of Bus. Measurement and Assurance Services $ 50
University of Arkansas College of Business Administration - MBA Program 6
Southern Republican Leadership Conf. Corporate Sponsor 5
Others (20) 9
Employee Services:
Manage Contributions 79
Accrual of Incentive Compensation 3
----------
TOTAL $ 152
==========
23 of 27 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C>
Restructuring Costs- Public Strategies, Inc. $ 402
Transition to Competition Association of Electric Companies of Louisiana 379
Association of Electric Companies of Texas, Inc. 318
Consumers First 282
Alliance for Competitive Electricity Ace 160
R. Duffy Wall & Associates 154
MCS Group 149
Baker & Botts LLP 130
Cranford Johnson Robinson Woods 90
VCI International 76
Don F. Cass 69
Burson Marsteller 65
JA Wright & Associates, Inc. 63
Sherri McConnell, Inc. 61
TX Perspectives, Inc. 60
Frederick Schneiders Research 59
Williams & Anderson Attys 58
Skadden Arps Slate Meagher & Flom 55
C. Lyle Barney Consulting Service 55
Johnston & Associates LLC 50
Strauss Radio Strategies, Inc. 49
Southern Media & Opinion Research Inc. 48
Alma M. Williams 44
Northbridge Group 38
Pittman Portis Communications 38
Shipley & Associates, Inc. 37
Staffmark 36
Repeal PUHCA Now Coalition 30
Farwell Group 27
Mid-South Communications 25
Allan Katz & Associates, Inc 23
Aura Energy Corporation 20
Group 5 West, Inc. 20
Employee Salaries 923
Restructuring Costs Accrual Reversal (199)
Various Vendors (136) 268
24 of 27 pages
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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
Governmental Affairs Entergy Service Billings $ 29
Various Vendors 6
Lobbying Expenses Employee Expenses 36
Various Vendors 3
Manage Legal Affairs Contract Work (110)
Employee Salaries 17
Various Vendors 11
Market Service Offers Miscellanous General Expenses 37
Various Vendors 12
Perform Executive Functions Contract Work 42
Employee Expenses 26
Entergy Services Billings 38
Various Vendors 1
Other Expenses Various Vendors 364
----------
TOTAL $ 4,674
==========
* The activity shown here may be duplicated in the "Outside Services
Employed" Schedule.
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
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 13-A thru 13-F.
24-A
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Schedule XIX - Financial Data Schedule
Item No. Caption Heading Amount
<S> <C> <C>
1 Net Service Company Property $82,541
2 Total Investments -
3 Total Current and Accrued Assets 124,362
4 Total Deferred Debits 21,850
5 Balancing Amount For Total Assets and Other Debits -
6 Total Assets and Other Debits 228,753
7 Total Proprietary Capital 20
8 Total Long-Term Debt -
9 Notes Payable -
10 Notes Payable to Associated Companies 62,156
11 Balancing Amount For Total Current and Accrued Liabilities 107,753
12 Total Deferred Credits 51,719
13 Accumulated Deferred Income Taxes 7,105
14 Total Liabilities and Proprietary Capital 228,753
15 Services Rendered to Associate Companies 566,384
16 Services Rendered to Nonassociate Companies 362
17 Miscellaneous Income or Loss -
18 Total Income 566,746
19 Salaries and Wages 219,405
20 Employee Pensions and Benefits 50,176
21 Balancing Amount For Total Expenses 297,165
22 Total Expenses 566,746
23 Net Income (Loss) -
24 Total Expenses (Direct Costs) 478,425
25 Total Expenses (Indirect Costs) 88,321
26 Total Expenses (Total) $ 566,746
27 Number of Personnel End of Year 3,028
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Organization Charts
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 27 pages
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Organization Charts
Chairman
Chief Administrative Officer, Human Resources & Admin, and Information
Technology
External/Governmental Affairs
Communications
Legal
Human Resources & Administration
Information Technology
Finance
Financial Transaction Center
Tax
Planning, Control & Reporting
Chief Financial Officer
Retail Services
Domestic Operations
Nuclear
Regulated Operations
Non-Regulated Operations
26 - A
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Methods of Allocation
Note: Each allocation formula is based on data relevant to the
participating 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.
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.
26 - B
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Methods of Allocation
System Capacity
Based on the power level, rated in kilowatts, that could be
achieved if all generating units were operating at maximum
capability simultaneously.
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.
Square Footage
Based on square footage occupied by ESI functional business
units.
Insurance Premiums (Non-Nuclear)
Based on non-nuclear insurance premiums.
Asset Records
Based on the number of asset records at period end.
Average Outstanding Capital Expenditure Authorizations (CEAs)
Based on a twelve-month average of outstanding CEAs.
Total Assets
Based on total assets at period end.
Bank Accounts
Based on the number of bank accounts at period end.
Computer Usage Composite
Based on three components: Customers (52% weighting), General
Ledger Transactions (29% weighting) and Employees (19%
weighting), with weighting based on historical usage.
General Ledger Transactions
Based on the number of general ledger transactions for the
period.
Customers and Employees Combination
Based on the equal weighting of a twelve-month average of
residential, commercial, industrial, government, and municipal
general business electric and gas customers and on the number of
full-time employees at period end.
26 - C
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1998
Appendix
Information in Compliance With Item 4 of SEC
Letter Dated December 29, 1986
(In Thousands)
Cost of services charged to project codes 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 $59
Other direct cost 18
Indirect cost 13
---
Total 90
---
Cost of services charged to project codes not related to the
transfer of SFI personnel 972
---
Total cost of services performed by Entergy Services and
billed to SFI $1,062
======
Amounts billed to Operating Companies for Fuel Oil Program* $574
Deferred Cost/Services -
Charged to Nuclear Fuel Inventory 488
Charged to Gas and Oil Development and Production Program -
------
Total $1,062
======
* Amounts charged to the Fuel Oil Program as a component of period
cost. For 1998, based on monthly averages, period costs were
allocated 9% to Entergy Arkansas, Inc. (EAI), 54% to Entergy
Louisiana, Inc. (ELI), 27% 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, 1998
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 a process similar to all other costs incurred by
Entergy Services. Various Project Codes have been established at
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 Management Accounting (MA) 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, assist in the 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.
The Energy Management Organization (EMO) provides services that
include operation and supervision 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. 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/ Nathan E. Langston
(Signature of Signing Officer)
Nathan E. Langston
Vice President and Chief Accounting Officer
(Printed Name and Title of Signing Officer)
Date: April 23, 1999
27 of 27 pages
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