UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1999 and Ending December 31, 1999
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.
<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 5-6
Service Company Property Schedule II 7
Accumulated Provision for Depreciation and Amortization of
Service Company Property Schedule III 8
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
Statement of Income 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
Nonassociate Companies Schedule XVI 18
Schedule of Expense of Department or Service Function Schedule XVII 19-20
Departmental Analysis of Salaries Various Accounts 21
Outside Services Employed Various Accounts 21
Employee Pensions and Benefits Various Accounts 22
General Advertising Expenses Various Accounts 22
Miscellaneous General Expenses Various Accounts 23
Rents Various Accounts 23
Taxes Other Than Income Taxes Various Accounts 24
Donations Account 426.1 24
Other Deductions Account 426.5 25
Notes to Statement of Income Schedule XVIII 26
Financial Data Schedule Schedule XIX 26
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Page
Description of Reports or Statements Number
Organization Chart 27
Methods of Allocation 27
Annual Statement of Compensation for Use of Capital Billed 27
Appendix
Information in compliance with Item 4 of SEC letter dated 27
December 29, 1986
</TABLE>
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<PAGE>
<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) $ 202,752 $ 177,775
107 Construction work in progress (Schedule II) 32,543 35,784
---------- ----------
Total Property $ 235,295 $ 213,559
---------- ----------
108 Less accumulated provision for depreciation and amortization of
service company property (Schedule III) 144,025 131,018
---------- ----------
Net Service Company Property $ 91,270 $ 82,541
---------- ----------
Investments
123 Investments in associate companies (Schedule IV) - -
124 Other Investments (Schedule IV) - -
---------- ----------
Total Investments $ - $ -
---------- ----------
Current and Accrued Assets
131 Cash 3,332 4,802
134 Special deposits 90 166
135 Working funds 25 107
136 Temporary cash investments (Schedule IV) 42,479 10,169
141 Notes receivable - -
143 Accounts receivable 12,604 5,832
144 Accumulated provision of uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 99,511 101,987
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) (1) (1)
165 Prepayments 372 15
174 Miscellaneous current and accrued assets (Schedule VIII) 2,181 1,285
---------- ----------
Total Current and Accrued Assets $ 160,593 $ 124,362
---------- ----------
Deferred Debits
181 Unamortized debt expense - -
182 Other regulatory assets - 31
184 Clearing accounts (4,709) (590)
186 Miscellaneous deferred debits (Schedule IX) 7,579 8,417
188 Research, development, or demonstration expenditures
(Schedule X) - -
190 Accumulated deferred income taxes 23,341 13,992
---------- ----------
Total Deferred Debits $ 26,211 $ 21,850
---------- ----------
TOTAL ASSETS AND OTHER DEBITS $ 278,074 $ 228,753
========== ==========
</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 75,508 57,891
233 Notes payable to associate companies (Schedule XIII) - -
234 Accounts payable to associate companies (Schedule XIII) 105,647 89,628
236 Taxes accrued 11,930 12,391
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 162 448
242 Miscellaneous current and accrued liabilities (Schedule XIII) 5,900 9,551
---------- ----------
Total Current and Accrued Liabilities $ 199,147 $ 169,909
---------- ----------
Deferred Credits
253 Other deferred credits (See Note 8) 65,080 49,019
255 Accumulated deferred investment tax credits 2,700 2,700
---------- ----------
Total Deferred Credits $ 67,780 $ 51,719
---------- ----------
282 Accumulated Deferred Income Taxes 11,127 7,105
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $ 278,074 $ 228,753
========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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
<S> <C> <C> <C> <C> <C> <C>
Account
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous Intangible Plant 10,322 13,084 - - 23,406
304 Land and Land Rights 1,708 - - - 1,708
305 Structures and Improvements 8,925 73 - - 8,998
306 Leasehold Improvements 10,798 2,222 - - 13,020
307 Equipment (2) 108,906 7,568 - - 116,474
308 Office Furniture and
Equipment 27,563 1,999 - - 29,562
309 Automobiles, Other Vehicles
and Related Garage Equipment 154 31 - - 185
310 Aircraft and Airport Equipment 9,399 - - - 9,399
311 Other Service Company
Property (3) - - - - -
----------------------------------------------------
SUB-TOTAL 177,775 24,977 202,752
----------------------------------------------------
107 Construction Work in Progress (4) 35,784 21,736 24,977 32,543
----------------------------------------------------
TOTAL $ 213,559 $ 46,713 $ 24,977 $ - $235,295
====================================================
</TABLE>
(1) Provide an explanation of those changes considered material:
(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
Subaccount Additions Close of Year
Description
<S> <C> <C>
Microwave Equipment
General Office $ 225 $ 7,265
Computer Center 521 5,447
System Operations Center 78
EDP Equipment
General Office 4,706 56,631
Computer Center 1,398 28,125
System Operations Center 718 18,928
---------- ----------
TOTAL $ 7,568 $ 116,474
========== ==========
</TABLE>
(3) Describe other service company property:
(4) Describe construction work in progress: Primarily computer equipment,
computer software upgrades and leasehold improvements.
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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
<S> <C> <C> <C> <C> <C> <C>
Account
301 Organization
303 Miscellaneous Intangible Plant $ 8,828 $ 2,515 $ 11,343
304 Land and Land Rights
305 Structures and Improvements 1,131 268 1,399
306 Leasehold Improvements 4,234 657 4,891
307 Equipment 89,659 6,749 96,408
308 Office Furniture and Fixtures 20,893 1,975 22,868
309 Automobiles, Other Vehicles
and Related Garage Equipment 629 9 638
310 Aircraft and Airport Equipment 5,644 834 6,478
311 Other Service Company
Property
-----------------------------------------------------------------
TOTAL $ 131,018 $ 13,007 $ - $ - $ 144,025
=================================================================
(1) Provide an explanation of those changes considered material:
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 Close of Year
Year
<S> <C> <C>
Account 123 - Investment in Associate Companies $ - $ -
Account 124 - Other Investments - -
Account 136 - Temporary Cash Investments - -
- Federated Investment 10,169 42,479
-------- --------
TOTAL $ 10,169 $ 42,479
======== ========
</TABLE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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
Description Beginning of Close of
Year Year
<S> <C> <C>
Account 146 - Accounts Receivable from Associate Companies
See page 9-A $ 101,987 $ 99,511
----------- ---------
TOTAL $ 101,987 $ 99,511
=========== =========
</TABLE>
Total
Payments
Analysis of Convenience or Accommodation Payments:
See page 9-A $ 2,046
-----------
TOTAL PAYMENTS $ 2,046
===========
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Schedule V - Accounts Receivable from Associate Companies
(In Thousands)
Balance at Balance at
Description Beginning of Close of
Year Year
<S> <C> <C>
Account 146 - Accounts Receivable from Associate Companies
Entergy Arkansas, Inc. $ 14,217 $ 13,843
Entergy Louisiana, Inc. 21,787 28,009
Entergy Mississippi, Inc. 8,904 7,866
Entergy New Orleans, Inc. 8,523 5,052
Entergy Corporation 3,540 2,226
Entergy Operations, Inc. 2,914 4,118
Entergy Power, Inc. 3,513 3,893
System Fuels, Inc. 160 198
System Energy Resources, Inc. 1,216 1,568
Entergy Enterprises, Inc. 3,945 6,853
Entergy Gulf States, Inc. 33,268 25,885
Money Pool (See Note 3) - -
----------- ------------
TOTAL $ 101,987 $ 99,511
=========== ============
Bulk Power Other
Payments Payments
Analysis of Convenience or Accommodation Payments:
Entergy Arkansas, Inc. $ (98,268) $ -
Entergy Louisiana, Inc. 152,427 -
Entergy Mississippi, Inc. (2,412) -
Entergy New Orleans, Inc. 38,886 -
Entergy Corporation - -
Entergy Operations, Inc. - -
Entergy Power, Inc. 12,259 -
System Fuels, Inc. - -
Entergy Enterprises, Inc. - 2,046
Entergy Gulf States, Inc. 190,304 -
Nonassociated Companies (293,196) -
---------- -----------
$ - $ 2,046
========== ===========
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ - $ - $ -
==== ====== ======
Summary:
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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) $ - $ (1)
-------- --------- -------
TOTAL $ (1) $ - $ (1)
======== ========= =======
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ 1,285 $ 2,181
---------- ---------
TOTAL $ 1,285 $ 2,181
========== =========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 Close of
of Year Year
<S> <C> <C>
Account 186 - Miscellaneous Deferred Debits
Long Term Incentive Plan $ 7,751 $ 6,994
Miscellaneous Accounts Receivable Refund Clearing (294) (121)
Deferred costs for companies not yet billed 395 16
Non-Expense Accrued Labor 479 585
Aircraft Chargeback Clearing - 105
Other 86 -
---------- ----------
TOTAL $ 8,417 $ 7,579
========== ==========
</TABLE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ -
=====
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $-
====
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
=========================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $- $- $- $-
======================================
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 Close of
of Year Year
<S> <C> <C>
Account 233 - Notes Payable to Associate Companies $ - $ -
-------- ----------
TOTAL $ - $ -
======== ==========
Account 234 - Accounts Payable to Associate Companies
Entergy Arkansas, Inc. $ 14,975 $ 14,814
Entergy Louisiana, Inc. 3,512 540
Entergy Mississippi, Inc. 4,706 945
Entergy New Orleans, Inc. 1,409 156
Entergy Gulf States, Inc. 2,461 1,228
Entergy Corporation - 57
Entergy Operations, Inc. 1 20
Entergy Power, Inc - -
System Fuels, Inc. - -
System Energy Resources, Inc. 33 -
Money Pool Interest (See Note 3) 62,531 87,887
--------- ----------
TOTAL $ 89,628 $ 105,647
========= ==========
Account 242 - Miscellaneous Current and Accrued Liabilities
Accrued rent expense $ 7,603 $ 4,584
Accrued savings plan expense and withholdings 153 142
Accrued severence pay 1,404 646
Accrued claims liability 142 44
Row Transmission Liability 249 484
--------- ---------
TOTAL $ 9,551 $ 5,900
========= =========
</TABLE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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-A thru 14-F
<PAGE>
Schedule XIV - Notes to Financial Statements
For the Year Ended December 31, 1999
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.
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, 1999 and 1998 (in thousands):
1999 1998
Deferred Tax Assets:
Deferred compensation $(281) $3,475
Operating reserves 14,236 13,390
Other 9,386 (2,873)
--------- ------
Total 23,341 13,992
--------- ------
Deferred Tax Liabilities:
Property (11,127) (7,105)
--------- ------
Net Deferred Tax Assets $ 12,214 $6,887
========= ======
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.
Entergy Services' effective income tax rate was 100% in 1999 and
1998 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 inter-
company expense (benefit) in lieu of federal income taxes for the
years ended December 31, 1999 and 1998 consisted of the following (in
thousands):
1999 1998
Current:
Federal $3,748 $3,839
State 173 455
------- ------
Total 3,921 4,294
------- ------
Deferred:
Federal (3,969) (744)
State (1,539) (172)
------- ------
Total (5,508) (916)
------- ------
Total income tax expense $(1,587) $3,378
======= ======
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 2000 or 1999.
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):
1999 1998
Average borrowing $83,922 $63,057
Maximum borrowing at month end $82,282 $69,921
Average effective interest rate:
During the year 5.3% 5.7%
At end of year 5.4% 5.7%
At December 31, 1999 and 1998, Entergy Services' temporary
borrowing position in the Money Pool was $87.5 million and $62.2
million, respectively.
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, 1999, there were shares with a cost of
$7.0 million included in Other Deferred Debits for Entergy
Corporation common stock purchased related to the Equity Plan. Under
the Equity Plan in 1999 and 1998, Entergy Services recorded
compensation expense of $3.1 million and $4.9 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 1999 and 1998, Entergy
Services contributed $3.9 million and $4.0 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 1999 and 1998 pension and other postretirement costs for
Entergy Services, including capitalized amounts, included the
following components (in thousands):
Pension Other Postretirement
Benefits
1999 1998 1999 1998
Service cost $11,843 $10,256 $ 4,586 $ 4,059
Interest cost 14,286 12,823 4,659 4,281
Expected return on assets (11,911) (7,331) - -
Amortization of transition asset (166) (167) 704 704
Amortization of prior service cost 226 228 - -
Recognized net (gain)/loss - - 2,051 1,956
------------------------------------
Net pension cost $14,278 $15,809 $12,000 $11,000
====================================
<TABLE>
<CAPTION>
Other Postretirement
Pension Benefits
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Change in the Projected Benefit Obligation
(PBO)/Accumulated Postretirement Obligation (APBO)
Balance at beginning of year $ 216,269 $169,793 $70,463 $ 47,682
Service cost 11,843 10,256 4,586 4,059
Interest Cost 14,286 12,823 4,659 4,281
Actuarial (gain)/loss (31,025) 26,683 (8,460) 16,729
Benefits paid (3,839) (3,286) (2,247) (2,288)
--------------------------------------------
Balance at end of year $ 207,534 $216,269 $ 69,001 $ 70,463
============================================
Change in Plan Assets
Fair value of assets at beginning of year $ 165,916 $118,841 $ - $ -
Actual return on plan assets 12,269 20,859 - -
Employer contributions 10,519 29,501 2,247 2,288
Benefits paid (3,839) (3,285) (2,247) (2,288)
--------------------------------------------
Fair value of assets at end of year $ 184,865 $165,916 $ - $ -
============================================
Funded status $ (22,669) $(50,353) $(69,001) $(70,463)
Unrecognized transition (asset)/obligation (978) (1,144) 9,137 9,841
Unrecognized prior service cost 1,976 2,202 - -
Unrecognized net (gain)/loss 29,467 60,850 21,031 31,542
--------------------------------------------
Prepaid/(accrued) pension cost $ 7,796 $11,555 $(38,833) $(29,080)
============================================
</TABLE>
The significant assumptions used in computing the pension and
other postretirement information above were as follows:
1999 1998
Weighted -average discount rate 7.5% 6.75%
Weighted-average rate of increase in future 4.6% 4.6%
compensation levels
Expected long-term rate of return on plan 9.0% 9.0%
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 5.5% for 2000, gradually
decreasing each successive year until it reaches 5.0% in 2005 and
beyond. A one percentage-point increase in the assumed health care
cost trend rate for 1999 would have increased the APBO by $6,355,000
and increased the sum of the service cost and interest cost by
$1,165,000. A one percentage-point decrease in the assumed health
care cost trend rate for 1999 would have decreased the APBO by
$5,292,000 and decreased the sum of the service cost and interest
cost by $949,000.
NOTE 5. LEASES
At December 31, 1999, Entergy Services had noncancelable
operating leases with minimum lease payments as follows (in
thousands):
2000 $21,599
2001 18,650
2002 10,244
2003 9,539
2004 9,425
Years thereafter 51,277
--------
$120,734
========
Rent expense amounted to approximately $43.8 million and $36.3
million for 1999 and 1998.
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 $13.0 million and
$8.4 million in 1999 and 1998, respectively.
NOTE 8. OTHER DEFERRED CREDITS
Other deferred credits (Account 253) consist principally of
accrued pension and postretirement benefit liabilities in both 1999
and 1998.
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Schedule XV Statement of Income
(In Thousands)
Account Description Current Year Prior Year
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies $ 586,299 $ 566,384
458 Services rendered to nonassociate companies 239 362
421 Miscellaneous income or loss - -
--------- ----------
Total Income $ 586,538 $ 566,746
--------- ----------
EXPENSES - Income Statement
403 Depreciation Expense 12,243 19,338
404 Amortization of Limited-Term Electric Plant 2,515 2,542
4081 Taxes Other than Income-Utility Operations 17,371 17,042
4082 Taxes Other Than Income-Other Inc. & Deduc 40 118
4091 Income Taxes - Utility Operating Income 3,921 4,294
4101 Provision for Deferred Inc Tax-Utility Operating Income (5,508) (875)
4114 Investment Tax Credit Adjustments-Utility Operations - (41)
416 Cost/Expense-Mdse, Job, Contract Work 431 1,763
4171 Expenses - Nonutility Operations 81 65
419 Interest & Dividend Income - -
4261 Donations 3,503 152
4263 Penalties - 115
4264 Expenditures-Civic, Political, and Related Activities 3,399 2,837
4265 Other Deductions 5,630 4,674
430 Interest on Debt to Associate Companies 4,511 3,662
431 Other Interest Expense 29 49
500-557 Power Production 36,776 36,346
560-574 Transmission & Distribution 17,728 16,844
580-598 Distribution Expense 15,588 18,602
850-894 Gas Operations 363 447
901-905 Customer Accounts 40,785 35,009
906-910 Customer Service & Informational Expenses 18,052 12,114
911-917 Sales Expenses 12,862 34,954
920 Administration & General Salaries 102,578 99,938
921 Office Supplies and Expenses 23,406 22,698
923 Outside Services Employed 52,846 66,077
924 Property Insurance Expense 303 607
925 Injuries & Damages Expense 3,054 2,258
926 Employee Pension & Benefits 51,773 42,103
928 Regulatory Commission Expense 9,778 8,139
9301 General Advertising Expenses 1,216 1,016
9302 Miscellaneous General Expense 3,818 (123)
931 Rents 33,900 34,246
935 Maintenance of General Plant 17,150 9,466
--------- ----------
Total Expenses - Income Statement $ 490,142 $ 496,476
--------- ----------
EXPENSES - Balance Sheet
-
107EXP Capital Charges to Expense 83,819 61,231
184EXP Other Balance Sheet Charges to Expense 12,577 9,039
--------- ----------
Total Expenses - Balance Sheet $ 96,396 $ 70,270
========= ==========
Net Income or (Loss) $ - $ -
========= ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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
<S> <C> <C> <C> <C>
Entergy Arkansas, Inc. $ 97,991 $ 15,885 $ - $ 113,876
Entergy Gulf States, Inc. 119,408 20,702 - 140,110
Entergy Louisiana, Inc. 104,391 16,610 - 121,001
Entergy Mississippi, Inc. 55,338 9,558 - 64,896
Entergy New Orleans, Inc. 39,155 6,973 - 46,128
Entergy Corporation 15,779 3,556 - 19,335
System Fuels, Inc. 1,057 243 - 1,300
Entergy Enterprises, Inc. 21,661 3,094 - 24,755
Entergy Operations, Inc. 41,571 9,153 - 50,724
Entergy Power, Inc. 788 143 - 931
Deferred 3,421 (178) - 3,243
--------------------------------------------
TOTAL $ 500,560 $ 85,739 $ - $ 586,299
============================================
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ 69 $ 55 $ - $ 124 $ - $ 124
Chase Manhattan 63 52 - 115 - 115
----------------------------------------------------------
TOTAL $ 132 $ 107 $ - $ 239 $ - $ 239
==========================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ 1,751 $ 10,492 $ 12,243 $ - $ - $ - $ 1,751 $ 10,492 $ 12,243
404 Amortization of Limited-Term
Electric Plant - 2,515 2,515 - - - - 2,515 2,515
4081 Taxes Other than Income-Utility
Operations 13,200 4,102 17,302 38 31 69 13,238 4,133 17,371
4082 Taxes Other Than Income-Other Inc.
& Deduc 1 39 40 - - - 1 39 40
4091 Income Taxes - Utility Operating
Income - 3,921 3,921 - - - - 3,921 3,921
4101 Provision for Deferred Inc
Tax-Utility Operating Income - (5,508) (5,508) - - - - (5,508) (5,508)
4114 Investment Tax Credit
Adjustments-Utility Operations - - - - - - - - -
416 Cost/Expense-Mdse, Job, Contract Work 431 - 431 - - - 431 - 431
4171 Expenses - Nonutility Operations 81 - 81 - - - 81 - 81
419 Interest & Dividend Income - - - - - - - - -
4261 Donations 3,350 153 3,503 - - - 3,350 153 3,503
4263 Penalties (1) 1 - - - - (1) 1 -
4264 Expenditures-Civic, Political,
and Related Activities 3,386 13 3,399 - - - 3,386 13 3,399
4265 Other Deductions 5,325 305 5,630 - - - 5,325 305 5,630
431 Other Interest Expense 4 25 29 - - - 4 25 29
500-557 Power Production 35,797 979 36,776 - - - 35,797 979 36,776
560-574 Transmission & Distribution 17,530 198 17,728 - - - 17,530 198 17,728
580-598 Distribution Expense 15,172 416 15,588 - - - 15,172 416 15,588
850-894 Gas Operations 360 3 363 - - - 360 3 363
901-905 Customer Accounts 40,392 393 40,785 - - - 40,392 393 40,785
906-910 Customer Service & Informational
Expenses 17,369 683 18,052 - - - 17,369 683 18,052
911-917 Sales Expenses 12,660 202 12,862 - - - 12,660 202 12,862
920 Administration & General Salaries 71,336 31,173 102,509 38 31 69 71,374 31,204 102,578
921 Office Supplies and Expenses 15,964 7,457 23,421 (8) (7) (15) 15,956 7,450 23,406
923 Outside Services Employeed 49,971 2,861 52,832 8 6 14 49,979 2,867 52,846
924 Property Insurance Expense 265 38 303 - - - 265 38 303
925 Injuries & Damages Expense 1,474 1,580 3,054 - - - 1,474 1,580 3,054
926 Employee Pension & Benefits 48,391 3,360 51,751 12 10 22 48,403 3,370 51,773
928 Regulatory Commission Expense 9,778 - 9,778 - - - 9,778 - 9,778
9301 General Advertising Expenses 926 290 1,216 - - - 926 290 1,216
9302 Miscellaneous General Expense 3,688 130 3,818 - - - 3,688 130 3,818
931 Rents 32,388 1,439 33,827 40 33 73 32,428 1,472 33,900
935 Maintenance of General Plant 16,699 444 17,143 4 3 7 16,703 447 17,150
-------------------------------------------------------------------------------------
Total Expenses - Income Statement $417,688 $ 67,704 $485,392 $ 132 $ 107 $ 239 $417,820 $ 67,811 $485,631
-------------------------------------------------------------------------------------
EXPENSES - Balance Sheet
107EXP Capital Charges to Expense 70,455 13,364 83,819 - - - 70,455 13,364 83,819
184EXP Other Balance Sheet Charges to Expense 12,442 135 12,577 - - - 12,442 135 12,577
-------------------------------------------------------------------------------------
Total Expenses - Balance Sheet $ 82,897 $ 13,499 $ 96,396 $ - $ - $ - $ 82,897 $ 13,499 $ 96,396
-------------------------------------------------------------------------------------
TOTAL EXPENSES $500,585 $81,203 $581,788 $ 132 $ 107 $ 239 $500,717 $ 81,310 $582,027
-------------------------------------------------------------------------------------
Compensation for use of Equity Capital - - - - - - - - -
430 Interest on Debt to Associate Companies - 4,511 4,511 - - - - 4 511 4,511
-------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $500,585 $85,714 $586,299 $ 132 $ 107 $ 239 $500,717 $ 85,821 $586,538
=====================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 Chief
Account Total Human Resources Public Relations Transition Domestic Financial
Number Description of Items Amount Overhead & Administration Legal & Affairs Projects Operations Officer
EXPENSES - Income Statement
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
403 Depreciation Expense $ 12,243 $ 1,824 $ - $ - $ - $ - $ - $ -
404 Amortization of Limited-
Term Electric Plant 2,515 (12) - - - - - -
4081 Taxes Other than Income-
Utility Operations 17,371 (21,093) 2,565 1,159 1,693 34 486 2,661
4082 Taxes Other Than Income-
Other Inc. & Deduc 40 39 - 1 - - - -
4091 Income Taxes - Utility
Operating Income 3,921 3,921 - - - - - -
4101 Provision for Deferred Inc
Tax-Utility Operating Income (5,508) (5,508) - - - - - -
4114 Investment Tax Credit
Adjustments-Utility Operations - - - - - - - -
416 Cost/Expense-Mdse, Job,
Contract Work 431 - - (2) - - - -
4171 Expenses - Nonutility Operations 81 - - - - - - -
419 Interest & Dividend Income - - - - - - - -
4261 Donations 3,503 2,759 17 - 600 - - 54
4263 Penalties - - - - - - - -
4264 Expenditures-Civic,
Political, and Related
Activities 3,399 70 1 - 2,656 - - -
4265 Other Deductions 5,630 119 141 402 2,390 1,610 16 217
430 Interest on Debt to
Associate Companies 4,511 4,511 - - - - - -
431 Other Interest Expense 29 29 - - - - - -
500-557 Power Production 36,776 14 65 11 8 - 78 -
560-574 Transmission & Distribution 17,728 - 59 4 - - 2 -
580-598 Distribution Expense 15,588 20 332 1 - - - -
850-894 Gas Operations 363 - 15 - - - - -
901-905 Customer Accounts 40,785 - 32 - - - - -
906-910 Customer Service &
Informational Expenses 18,052 17 59 6 166 - - 523
911-917 Sales Expenses 12,862 7 58 - - - - -
920 Administration & General
Salaries 102,578 14,469 10,774 6,366 6,482 34 2,708 14,582
921 Office Supplies and Expenses 23,406 934 7,248 674 1,619 31 263 3,221
922 Administration Expense
Transferred - Credit - - - - - - - -
923 Outside Services Employeed 52,846 7,861 5,234 3,687 1,254 166 796 8,776
924 Property Insurance Expense 303 - - 1 - - - 294
925 Injuries & Damages Expense 3,054 1,012 (18) - - - - 913
926 Employee Pension & Benefits 51,773 3,344 (35,676) 2,365 3,441 32 2,102 5,611
928 Regulatory Commission Expense 9,778 - 43 2,163 2,001 3,596 158 394
9301 General Advertising Expenses 1,216 27 31 - 603 - 98 221
9302 Miscellaneous General Expense 3,818 3,979 (651) 12 1 - - 171
931 Rents 33,900 5 24,417 112 98 - 2 113
935 Maintenance of General Plant 17,150 - 4,853 1 - - - 6
EXPENSES - Balance Sheet - - - - - - - -
107EXP Capital Charges to Expense 83,819 1 547 36 59 - 1,353 13,670
184EXP Other Balance Sheet
Charges to Expense 12,577 24 63 40 82 - - 650
--------------------------------------------------------------------------------------------
$586,538 $ 18,373 $ 20,209 $ 17,039 $ 23,153 $ 5,503 $ 8,062 $ 52,077
============================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Schedule XVII - Schedule of Expense Distribution by Department or
Service Function
(In Thousands)
DEPARTMENT OR SERVICE FUNCTION
Finance
Account Information Operations Supply Regulated Retail
Number Description of Items Technology Cennter Chain Nuclear Operations Services
EXPENSES - Income Statement
<S> <C> <C> <C> <C> <C> <C> <C>
403 Depreciation Expense $ - $ 10,419 $ - $ - $ - $ -
404 Amortization of Limited-Term Electric
Plant - 2,527 - - - -
4081 Taxes Other than Income-Utility
Operations 7,263 1,190 1,082 1,389 15,109 3,833
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 - - - - - 433
4171 Expenses - Nonutility Operations - - - - 4 77
419 Interest & Dividend Income - - - - - -
4261 Donations 9 - - - 49 15
4263 Penalties - - - - - -
4264 Expenditures-Civic, Political, and
Related Activities 1 - 1 - 670 -
4265 Other Deductions 58 5 5 8 548 111
430 Interest on Debt to Associate Companies - - - - - -
431 Other Interest Expense - - - - - -
500-557 Power Production 448 2 967 5,678 29,505 -
560-574 Transmission & Distribution 137 - 146 - 17,380 -
580-598 Distribution Expense 368 - 609 - 14,226 32
850-894 Gas Operations - - 1 - 340 7
901-905 Customer Accounts 1 - - - 40,331 421
906-910 Customer Service & Informational Expenses 2 - - - 3,339 13,940
911-917 Sales Expenses 6 - 1 - 1,459 11,331
920 Administration & General Salaries 32,932 5,282 2,915 2,863 177 2,994
921 Office Supplies and Expenses 6,787 448 653 300 996 232
922 Administration Expense Transferred-Credit - - - - - -
923 Outside Services Employeed 22,931 411 519 438 772 1
924 Property Insurance Expense - 5 - - 2 1
925 Injuries & Damages Expense - - - - 1,145 2
926 Employee Pension & Benefits 17,019 3,663 2,486 2,552 36,862 7,972
928 Regulatory Commission Expense 43 223 4 38 872 243
9301 General Advertising Expenses 109 - 43 - 86 (2)
9302 Miscellaneous General Expense 141 (197) 230 65 62 5
931 Rents 8,492 121 14 324 95 107
935 Maintenance of General Plant 12,273 - - - 1 16
EXPENSES - Balance Sheet
107EXP Capital Charges to Expense 33,111 1,366 454 384 32,778 60
184EXP Other Balance Sheet Charges to Expense 305 71 5,008 258 5,458 618
------------------------------------------------------------
$142,436 $ 25,536 $ 15,138 $14,297 $ 202,266 $ 42,449
============================================================
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 21-A $191,442 $ 5,126 $ 186,253 $ 63 2,767
---------------------------------------------------
TOTAL $191,442 $ 5,126 $ 186,253 $ 63 2,767
===================================================
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 21-B thru 21-N $129,377
--------
TOTAL $129,377
========
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ 14,288 $1,281 $ 12,991 $ 16 11
Human Resources & Administration 9,057 375 8,665 17 161
Legal 5,691 350 5,341 - 79
Public Relations & Affairs 7,555 420 7,135 - 109
Transition Projects 390 24 366 - 4
Domestic Operations 2,561 73 2,488 - 25
Chief Financial Officer 13,288 1,716 11,542 30 179
Information Technology 33,944 277 33,667 - 521
Finance Operations Center 5,076 192 4,884 - 116
Supply Chain 5,946 34 5,912 - 85
Nuclear 6,560 26 6,534 - 81
Regulated Operations 73,086 263 72,823 - 1,275
Retail Services 14,000 95 13,905 - 121
--------------------------------------------------
TOTAL $191,442 $5,126 $186,253 $ 63 2,767
==================================================
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased * Associate Amount
OUTSIDE SERVICES - LEGAL
Adams & Reese NA $ 33
Baker & Botts Llp NA 183
Baker & McKenzie NA 47
Bruce R. Daily Attorney NA 56
Gardner Carton & Douglas NA 86
Gordon Arata McCollum & Duplantis NA 196
King & Spalding NA 25
Kullman Firm NA 44
Locke Liddell & Sapp Llp NA 26
McCalla Thompson Pyburn Hymowitz & Shapiro NA 85
McDermott Will & Emery NA 479
Milbank Tweed Hadley & Mccoy NA 262
Morgan Lewis & Bockius Llp NA 775
Phelps Dunbar Llp Atty At Law NA 105
Skadden Arps Slate Meagher & Flom NA 1,580
Stanley & Flanagan Llc NA 100
Steptoe & Johnson Atty At Law NA 126
Stone Pigman Walther Wittman NA 43
Taggart Morton Ogden Staub Rougelot Et Al NA 220
Taylor Porter Et Al NA 33
Thelen Reid & Priest Llp NA 214
Trotter Law Firm Pa NA 155
Williams & Anderson Attys NA 127
Winston & Strawn NA 332
Wise Carter Child & Caraway NA 425
Wright Lindsey & Jennings NA 44
Others (49) NA 236
------
Total $6,037
------
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
OUTSIDE SERVICE - PROFESSIONAL CONTRACT SERVICES
Accelerated Development Systems Inc NA $ 259
Actuarial Sciences Assoc Inc NA 386
Addison Design Co. NA 76
Albert Garaudy & Associates NA 28
Alliance For Competitive Electricity Ace NA 91
Alma M Williams NA 78
American Meter Services NA 644
American Metrocommunication NA 27
Andersen Consulting LLP NA 17,329
Andrews Financial Association NA 33
AR Analytical, Inc. NA 43
Arizona State University NA 57
Arthur Andersen LLP NA 1,355
Ascend Performance Solutions NA 71
Assn Of Electric Co Of Tx Inc NA 273
AT Kearney NA 1,425
Atest Consultants Inc NA 103
Aura Energy Corp. NA 105
Baker Engineering NA 708
Balanced Scorecard Collaborative, Inc. NA 540
Baw & Co. NA 425
Bob Collins Corporate Writing & Comm. NA 38
Bryan Assoc Inc NA 71
Burns & McDonnell NA 42
C Lyle Barney Consulting Service NA 60
Cambridge Reports Research Intl NA 31
Carson Group Inc NA 94
Central Arkansas Surveying, Inc. NA 40
Chasemellon Shareholder NA 34
Chatham Partners Inc NA 459
Communispond Inc NA 41
Consumers First NA 102
Continental Traffic Service Inc NA 85
Conway Consulting NA 52
Coopers & Lybrand LLP NA 84
Cornell University NA 80
Corporate Advisory Board NA 72
Cranford Johnson Robinson Woods NA 186
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
Creative Communications Inc NA $ 30
CSC Consulting NA 1,578
Cushman & Wakefield of Texas, Inc. NA 244
Dan Gray Consulting, Inc. NA 88
Deloitte & Touche Llp NA 63
Denali Group NA 214
Det Norske Veritas Industry NA 61
Digital Equipment Corp NA 249
Diversified Computer NA 589
Don F Cass NA 72
Drake Beam Morin Inc NA 52
Dun & Bradstreet NA 34
E Source Inc NA 90
Econat Inc NA 281
Environmental Systems Corporation NA 41
EPRI NA 127
Equifax Credit Info Services The Credit Bureau Inc. NA 237
Ernst & Young NA 989
ESCA Corporation NA 411
Exeter Association, Inc. NA 25
Filenet Corporation NA 55
Flake Wilkerson Market Insight Llc NA 115
Fossil Energy Research Corporation NA 46
Freeport McMoRan Inc Dba FM Services Co NA 112
Fried, Frank, Harris, Shriver Et al NA 72
FTN Association NA 33
Futures NA 28
Ga Tech Research Corp Grtc NA 114
Gartner Group Inc NA 201
General Electric NA 104
General Physics Corporation NA 428
General Reliability NA 35
Gerald Tucker CPA NA 64
Green Goblin Unlimited NA 36
Haglar Bailly Consulting NA 36
Hall Green & Associates NA 96
Hamilton Consultants NA 80
Hansen Holm Alonso & Co. NA 35
Haynie & Associates NA 40
Hewitt Assoc Llc NA 28
Hooper Hooper Owen & Gould NA 186
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Huey T Littleton Claims N $ 238
Hullin Metz & Co, LLC NA 53
IBM Corp NA 7,290
Infinity Data Systems Inc NA 26
Information Intellect Inc NA 164
Internet Security Systems, Inc. NA 36
Intersearch Corp NA 1,798
Itron Inc NA 229
JA Wright & Associates Inc NA 311
Janus Management Association NA 37
Jerry Fuller NA 86
JM Cannell, Inc. NA 64
JRA Assoc NA 130
Kelly Services NA 58
Kennedy Reporting Service, Inc. NA 34
King & Spalding NA 54
KPMG Peat Marwick Llp NA 101
Kronish Lieb Weiner & Hellman NA 165
L&R Adjustment Co Inc NA 70
Leading Leaning Communities NA 71
Lek Alcar Consulting Group LLP NA 5,724
Lexis Nexis NA 73
LSN Group, Inc. NA 150
Ma Institute Of Technology NA 294
Marion E Council Pe NA 61
Mastech NA 245
McKinsey & Co Inc NA 1,071
MCS Group NA 603
Meta Group NA 25
Metamor Information Technology NA 47
Metco Environmental Inc NA 204
Micon , Inc. NA 176
Microsoft Corporation NA 77
Milbank, Tweed, Hadley & McCoy NA 63
Mind Cellar Consulting NA 51
Monitor Labs, Inc. NA 249
Ms Claims Service Inc NA 40
Murov & Ward PLC NA 63
Nola Computer Services Inc NA 302
Norstan Communications Inc NA 89
Northbridge Group NA 1,870
NTS Technical Services, Inc. NA 164
Oakwood Corporate Group NA 299
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Pace Systems Pace Sound Lighting Inc NA $ 80
Parker & Assoc NA 129
Parviz Rastgoufard Phd Pe NA 88
Peoplesoft USA, Inc. NA 533
Periphonics Corporation NA 68
Petrocon Engineering Inc NA 347
PGI New Orleans NA 38
Phillip D. Bryant NA 25
PMCC, Inc. NA 44
PPM Inc NA 131
Press Association Inc NA 37
PriceWaterhouseCoopers LLP NA 2,684
Professional Health Services NA 195
Profit Finding Services, Inc. NA 90
PYSCOR International NA 30
Public Energy Services LLC NA 40
Public Strategies Inc NA 761
Putnam Hayes & Bartlett Inc NA 415
Qualitative Marketing Software NA 39
Quick Courier Services NA 28
R Duffy Wall & Assoc NA 205
Raytheon Engineers & Constructors Inc NA 710
Regional Economic Research NA 40
Regional Financial Associates NA 46
Repeal Puhca Now Coalition NA 220
RGA Labs, Inc. NA 113
RHR Intl Co NA 113
Richmark Research NA 250
RKS Research & Consulting NA 152
Robin & Associates NA 30
Roger Morin NA 75
RR Donnelley & Sons NA 40
Saterley Consulting NA 43
Science Applications International NA 11,092
Securities & Exchange NA 97
Sherri McConnell NA 60
Sir Speedy NA 49
Sizeler Architects NA 32
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Software Systems Development Corp NA $ 98
Solid Systems, Inc. NA 55
Sonnenschein Nath & Rosenhal NA 72
Southern Media & Opinion Research Inc NA 62
Spectra Inc NA 148
SPL Laboratories NA 64
ST Carter, Inc. NA 33
Staffmark NA 65
Startmart, Inc. NA 50
Stone & Webster Management NA 102
Strategic Decisions Group NA 1,649
Team Housing Solutions NA 91
Teknekron Infoswitch Corporation NA 806
Teleformation, Inc. NA 438
Theodore Barry & Associates NA 27
Thoma & Thoma Creative Service NA 96
Tivoli Systems Inc NA 60
TLG Services NA 104
Touch Technologies NA 43
Towers Perrin NA 74
Texas Department of Housing & Community NA 85
Utilities International NA 37
Utility Translation Systems Inc NA 35
VA Security Company NA 33
Vanguard Communications Corp NA 31
VCI Intl NA 61
Vinson Guard Service NA 154
W9 Trinet Poydras Llc NA 56
Walter Bond NA 102
Williamson Printing Corp NA 93
Wink Engineering NA 190
Xerox Business Corp NA 165
Others (681) NA 2,467
-------
Total $82,816
-------
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
OUTSIDE SERVICE - CONTRACT/DESIGN ENGINEERING
Chatham Partners, Inc. NA $ 130
CS & Associates NA 62
Express Personnel Services NA 25
Fact Based Management Inc NA 510
FP Louisiana LLC NA 30
General Electric Co. NA 77
Gensler & Associates NA 60
IT Corporation NA 62
Linesoft NA 61
Marrero Couvillon & Assoc Inc NA 158
Mathes Group NA 47
Sizeler Architects NA 27
Others (16) NA 77
-------
Total $ 1,326
-------
OUTSIDE SERVICE - TEMPORARY EMPLOYEE SERVICES
Aerotek Inc NA $ 2,265
AM PM Temporary Services Inc NA 47
American Personnel & Temps Inc NA 326
Ameritech Data Networking Solutions NA 81
Amicus Legal Staffing Inc NA 89
Anixter, Inc. NA 123
Apogee Software Systems NA 523
Ascent Consulting Group Inc NA 340
Aura Energy Corp NA 841
Austin Software Foundry NA 55
Ca Consultants Int Ltd NA 482
Comdisco Disaster Recovery Service Inc NA 54
Computer Professionals Inc NA 185
Crestone Intl Llc NA 285
Cross Country Staffing NA 125
CSC Consulting NA 964
Darwin Partners NA 48
Data Port, Inc. NA 100
Diamond Data Systems Inc NA 1,040
Diversified Computer Consultants Llc NA 2,281
Elite Personnel Service Inc NA 39
Enterprise Resource Mgmt Inc NA 86
Express Personnel Services Inc NA 321
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Frontier Systems Inc NA $ 171
General Electric Capital NA 108
Green Goblin Unlimited NA 28
Highland Group Inc The NA 1,285
Hillhouse Power Solutions NA 55
IBM Corporation NA 539
Inacom Information Systems NA 56
Infinity Data Systems NA 256
Informatica Corporation NA 60
Information Technology Staffin NA 116
Intellimark Inc NA 193
Intercede , Inc. NA 174
Intrasolv Consulting NA 43
Kelly Temporary Services, Inc. NA 1,680
Lodestar Corp NA 38
Lucille F Griffin NA 27
Manpower, Inc. NA 428
Maxim Group NA 56
Metamor Information Technology Services NA 301
Micon, Inc. NA 189
Mitem Corp NA 50
Motorola, Inc, NA 41
NOLA Computer Services NA 501
Norrell Services Inc NA 39
Nortel Networks USA NA 87
NTS Technical Services Inc Div of S&W Tech Services NA 603
Oracle Corporation NA 28
Paranet Inc NA 70
PeopleSoft NA 86
PMCC Inc NA 244
Priority Communications NA 110
Professional Temporaries USA NA 38
Recon Technologies Inc NA 160
Science Applications International NA 583
Software & Scanning Services NA 140
Sprint Paranet Inc NA 987
Staffmark NA 584
Sun Microsystems NA 90
Teksystems NA 34
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Teraquest Metrics Inc NA $ 42
Terra Prise Solutions NA 85
Truepro Consulting Services NA 75
Tulane University NA 42
Ultimate Marketing Inc NA 304
Utility Systems Services NA 91
VLFR Consulting Service Inc NA 110
Wink Engineering NA 349
Wooley Contract Services Inc Wcs Inc NA 35
Working Capital Co. NA 34
Xerox Business Corporation NA 41
Other (112) NA 460
-------
Total $22,646
-------
OUTSIDE SERVICE - OTHER
Actuarial Sciences Association NA $ 48
Alabama MidSouth Services NA 59
Alistair Preston PHD NA 82
AME Services NA 74
American Building Maintenance NA 329
American Citadel Guard Inc NA 129
American Citadel Industrial NA 56
American Express NA 76
American Payment Systems Inc NA 105
Asplundh Tree Expert NA 230
Association Office Sytems of LA NA 93
AZ Tech Commercial Cleaning NA 74
Barts Office Furniture Repairs Inc NA 195
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
Bayou Cadd Inc NA $ 31
Bell South Billing Services NA 63
Bourgeois & Associates NA 199
Browning Ferris Industries, Inc. NA 42
Cain Industrial Services NA 34
CLM Services NA 82
Comdisco Disaster Recovery NA 290
Control Data Corp NA 41
Conway Consulting NA 36
Corp Express Delivery Systems NA 684
CRI Services NA 33
Crown Electric Inc NA 29
Crown Roofing Services Inc NA 37
CS & Associates NA 221
Cummins Midsouth NA 335
Dana Corporation NA 832
David Domangue Equipment NA 34
Day Detectives NA 32
Diamond Data Systems NA 44
Digital Equipment Corporation NA 73
Dixie Environmental Services NA 26
Don Lightfoot Construction NA 25
Dubos Refinishers NA 31
Electrical Engineering Professional Services Inc NA 75
Electronic Systems Usa Inc NA 52
ESCA Corporation NA 223
Express Personnel Services NA 33
Fact Based Management, Inc. NA 469
Fluor Daniel Inc NA 695
Frost Barber Inc NA 291
Fuelman NA 110
Gee Cee Group NA 103
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
<S> <C> <C>
General Physics Corporation NA $ 45
Georgine Berthelot NA 49
Gregg Engineering NA 28
H & S Maintenance NA 28
Hale Construction NA 46
Harris Canada NA 26
Harvey Construction Co Inc NA 42
Herbert Odonnell Inc NA 165
Highlines Construction NA 225
Independent Consultant Services Inc NA 34
Instinctive Technology NA 38
Intersearch Corporation NA 75
Irby Construction Co Corp NA 1,472
ISS Cleaning Services Group NA 45
Jackson Communications Inc NA 82
Jim Rubin NA 79
Kay Electronics NA 33
KV Electric NA 31
LA Service & Contracting NA 54
Lantrip Construction Co Inc NA 258
Lawn Specialties NA 43
Leasetec Corporation NA 112
LGK Association NA 87
Linesoft NA 642
Lumberton Tower Service Lts Inc NA 63
M & P Construction NA 27
Main NA 44
Mannington Commercial NA 46
Marriott Hotel Services Inc NA 97
Marvin Electric Service Inc NA 179
Max Derbes NA 40
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Monroe Communications NA $ 39
Montgomery Elevator Co NA 66
Montgomery Kone, Inc. NA 40
Motorola Communications & Elec Tronics Inc. NA 201
Mr. Kleans Carpet & Janitorial NA 116
Nolan Battery Co Inc NA 85
Nolmar Servicemaster NA 405
Northstar Helicopters NA 92
Onesource Facility Services NA 82
Onsite Engineering & Management NA 26
Opex Corp NA 34
Osmose Wood Perserving NA 49
Otcs Inc Telecommunication & Cabling Sv NA 26
Pack Engineering NA 158
Panther Helicopters NA 42
Pinkerton Security & Investigation Services Corp NA 62
Pohlman & Wilbanks NA 50
Professional Construction NA 822
Quality Technical Services Inc NA 51
Quick Courier Services Inc NA 105
Reed Service Co Inc NA 57
Rental Systems, Inc. NA 27
RHR International NA 208
Riverbend Moving & Storage NA 87
Roy Shanker Phd NA 47
Servicemaster Of New Orleans NA 294
Shimon Awerbuch Phd NA 170
Sodexho NA 875
Southern Helicopters NA 26
Southwest Electric Co. NA 93
Star Service, Inc. NA 749
Telephone System & Computer Wiring NA 83
Tivoli Systems NA 372
Todays Office NA 35
Todd Electric Inc NA 77
Tomba Communications & Electro Nics Inc NA 78
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Outside Services Employed
(In Thousands)
Relationship
"A" - Associate
"NA" - Non
From Whom Purchased* Associate Amount
Trane Company NA $ 80
Two Way Communications NA 66
Tx Coatings Application NA 174
Tx Industrial Contractors Inc NA 238
Universal Personnel Service NA 50
Uretek USA NA 41
US Lawns of New Orleans NA 36
Utility Systems Services NA 28
Vanstar Corp NA 43
Vegetation Management Specialist Inc. NA 28
Vinson Guard Service Inc NA 181
Wackenhut Corp NA 73
Waste Management, Inc. NA 203
Wink Engineering NA 51
Woodson, Inc. NA 256
Others (670) NA (1,915)
--------
Total $16,552
--------
Grand Total $129,377
========
* The activity shown here may be duplicated in the "Other Deductions - Account
426.5" Schedule or the "General Advertising Expenses - Account 930.1"
Schedule.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ 15,280
Savings Plan 3,999
Pension Plans 13,239
Employee Meetings/Functions/Awards 2,653
Educational Reimbursement 442
Post Retirement Plan Benefits 11,269
Executive Supplemental Pension 12,223
Employee Stock Investment Plan 616
Other 11
--------
TOTAL $ 59,732
========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 Newpapers, Periodicals, Teleformation, Inc. $ 341
Billboards, Radio, etc. Audubon Institute 100
New Orleans Brass, Inc. 44
JWG Association, Inc. 32
Power Gen 30
Beaumont Enterprise 25
VCI International 12
Audio Recording Corporation of Arkansas 10
Clout Ministerial Alliance, Inc. 10
TMP Interactive, Inc. 9
New Orleans Saints 5
Black Caucus Police Jury of Louisiana 5
Louisiana Municipal Association Black Caucus 5
Louisiana Polico Recreation Club 5
National Conference of Black Mayors, Inc. 5
News Star 3
Creative Graphics 8
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
General Advertising Expenses - Account 930.1
(In Thousands)
Description Name of Payee Amount* Amount
<S> <C> <C>
Fees and expenses of advertising agencies and Korn Ferry International 182
commercial artists Thoma & Thoma Creative Service 124
Norrell Services, Inc. 33
White Advertising Specialty 18
OMNI Partners 4
Advanced Marketing Team 3
Printing of Booklets, Dodgers, Bulletins, etc. MCS Group 101
International Business Publishers, Inc. 24
GMC & Company, Inc. 16
United Way Greater New Orleans 5
Supplies & Expenses in Preparing Advertising Gary B. Silbert 7
Materials Bryan L. Harding 5
Employee Expenses Payroll 7
Others Others (96) 38
------
Total $1,216
======
</TABLE>
* The activity shown here may be duplicated in the "Outside Services
Employed" Schedule.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ 2,201
Employee relocation and outplacement 4,569
Applicant expenses 865
Industry Association Dues / Corporate Memberships 2,635
Other corporate expenses (90)
-
---------
TOTAL $ 10,180
=========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ 25,290
Equipment & Facilities 2,935
Computer hardware 5,790
Computer software 9,808
Telephone lines and equipment 56
----------
TOTAL $ 43,879
==========
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 $ 2,504
Unemployment taxes 453
Other taxes 167
--------
Total $ 3,124
U.S. Government Taxes --------
FICA taxes 10,982
Unemployment taxes 211
--------
Total $ 11,193
--------
TOTAL $ 14,317
========
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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:
Enterprise Corp. of Delta Corporate Sponsorship $ 2,500
Foundation for the MidSouth Annual Support 250
Randy Zeagler Fund Corporate Match for Deceased Employee 75
University Of Texas at Austin Corporate Sponsorship 50
NRCC Building Fund Building Fund Contribution 50
Democratic National Committee Building Fund Contribution 49
City Park Improvement Association Corporate Sponsorship 16
R&R Brush & Weed, Inc. Corporate Sponsorship 13
Arkansas Game & Fish Foundation Corporate Sponsorship 12
Junior Achievement Corporate Sponsorship 10
Associated Office Systems of Louisiana Corporate Sponsorship 7
Congressional Sportsmens Corporate Sponsorship 6
Lab Safety Supply, Inc. Corporate Sponsorship 5
Business Institute Corporate Sponsorship 5
Central High School Corporate Sponsorship 5
Mangolia Boys & Girls Club Corporate Sponsorship 5
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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
Public Forum Institute Corporate Sponsorship $ 5
Indoff, Inc. Corporate Sponsorship 5
American Coal Foundation Corporate Sponsorship 3
Public Affairs Council Corporate Sponsorship 3
University of Arkansas Foundation Corporate Sponsorship 3
Others (86) 59
Employee Services:
Manage Contributions 367
--------
TOTAL $ 3,503
========
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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
Restructuring Costs - Northbridge Group $1,371
Transition to Competition Public Strategies, Inc. 488
Association of Electric Companies 358
of Texas, Inc.
Association of Electric Companies 188
of Louisiana
Cranford Johnson Robinson 185
Baker & Botts LLP 169
JA Wright & Associates 159
Consumers First LLC 102
Alma M. Williams 78
Jonhnston & Associates LLC 75
VCI International 61
Sherri McConnell, Inc. 60
Southern Media & Opinion 56
Williams & Anderson Attys 52
BAW & Company, Inc. 50
Teleformation, Inc. 44
Don F. Cass 42
Haynie & Associates, Inc. 40
Thoma & Thoma Creative Service 34
Creative Communications, Inc. 30
Robin & Associates 30
Allen R. Bares PLC 24
Farwell Group 24
Spradley & Spradley 24
Sutton Mapes & Yelerton, Inc. 20
ML Bud Mapes & Associates 20
Harry L. Benoit 18
Jones Productions 17
Aura Energy Corporation 16
Hilton Jackson 16
Bill Sanchez 15
Maxine Cormier 15
Putnam Hayes & Bartlett, Inc. 13
Allan Katz & Associates, Inc. 12
Alton Ashy 12
Yale Club of New York 11
Sarah Whalen & Associates 10
Peerless 10
Robert S. Gray 8
Paul N. Means 7
Janie L. Urbanic 5
B. Lehman & Associates, Inc. 5
C. Lyle Barney Consulting 5
Kimberly H. Despeaux 5
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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
Restructuring Costs - Transition Kay Kelley Arnold $ 4
to Competition Econate, Inc. 4
Alltel Mobile Communications 4
Field Management Specialists 4
Staffmark 4
Rosiland O. Smith 3
James F. Kenney 3
Allwin Direct 3
Group 5 West, Inc. 2
Nick Clark Printing 2
Gary B. Silbert 2
Employees Salaries 819
Various Vendors (63) 25
Perform Executive Functions Contract Work 103
Miscellaneous Income Deduction 8
Payroll 6
Various Vendors 3
Charge Injuries & Damages Reserve Other 107
General Ledger Services Other 77
Perform Lobbying Activities Payroll 50
Employee Benefits 11
Employee Expenses 9
Payroll Taxes 4
Conduct Flight Operations Employee Expenses 58
Develop and Administer Business Miscellaneous Income Deduction 35
Plans Public Relation Expenses 15
Varios Vendors 1
Perform Info System Payroll 35
Administration Support Employee Benefits 5
Payroll Taxes 3
Various Vendors
Manage Governmental Affairs Public Relation Expenses 37
Manage Wholesale Transactions Public Relation Expenses 18
Miscellaneous General Expenses 8
Other Expenses Various Vendors 174
------
TOTAL $5,630
======
* The activity shown here may be duplicated in the "Outside Services
Employed" Schedule.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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-A through 14-F.
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Schedule XIX - Financial Data Schedule
Item No. Caption Heading Amount
<S> <C> <C>
1 Net Service Company Property $ 91,270
2 Total Investments -
3 Total Current and Accrued Assets 160,593
4 Total Deferred Debits 26,211
5 Balancing Amount For Total Assets and Other Debits -
6 Total Assets and Other Debits 278,074
7 Total Proprietary Capital 20
8 Total Long-Term Debt -
9 Notes Payable -
10 Notes Payable to Associated Companies -
11 Balancing Amount For Total Current and Accrued Liabilities 199,147
12 Total Deferred Credits 67,780
13 Accumulated Deferred Income Taxes 11,127
14 Total Liabilities and Proprietary Capital 278,074
15 Services Rendered to Associate Companies 586,299
16 Services Rendered to Nonassociate Companies 239
17 Miscellaneous Income or Loss -
18 Total Income 586,538
19 Salaries and Wages 191,442
20 Employee Pensions and Benefits 59,732
21 Balancing Amount For Total Expenses 335,364
22 Total Expenses 586,538
23 Net Income (Loss) -
24 Total Expenses (Direct Costs) 500,717
25 Total Expenses (Indirect Costs) 85,821
26 Total Expenses (Total) $586,538
27 Number of Personnel End of Year 2,767
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Organization Charts
See page 27 - A
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Methods of Allocation
See pages 27 - B thru 27 - C
ANNUAL REPORT OF ENTERGY SERVICES, INC.
Annual Statement of Compensation for Use of Capital Billed
- None -
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Organization Charts
Chairman
Corporate
Human Resources & Administration
Legal
Public Relations & Affairs
Transition Projects
Domestic Operations
Finance
Chief Financial Officer
Information Technology
Finance Operations Center
Supply Chain
Retail Services
Nuclear
Regulated Operations
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Methods of Allocation
Note: Each allocation formula is based on data relevant to the
participating Client Companies to whom the services are provided and
the department providing the service.
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 < 400kv = 1, Voltage >= 400kv = 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.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 of 34.5kv or
less.
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 and quick payment centers 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.
Fiber
Based on capacity and use of the Entergy System's fiber optic
network.
Paychecks Issued
Based on the number of paychecks issued to each Legal Entity.
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
Appendix
Information in Compliance With Item 4 of SEC
Letter Dated December 29, 1986
(In Thousands)
Amount
Cost of services charged to project codes
established to track cost of functions per
formed by System Fuels, Inc. (SFI) personnel
transferred to Entergy Services, Inc.
(Entergy Services).
Direct Cost:
Labor and related cost $ 69
Other direct cost 25
Indirect cost 16
----
Total 110
----
Cost of services charged to project codes not
related to the transfer of SFI personnel 1,189
------
Total cost of services performed by Entergy $1,299
Services and billed to SFI ======
Amounts billed to Operating Companies for Fuel Oil $ 752
Program*
Deferred Cost/Services -
Charged to Nuclear Fuel Inventory 547
Charged to Gas and Oil Development and Production Program -
-------
Total $ 1,299
=======
* Amounts charged to the Fuel Oil Program as a component of period
cost. For 1999, based on monthly averages, period costs were
allocated 9% to Entergy Arkansas, Inc. (EAI), 53% to Entergy
Louisiana, Inc. (ELI), 28% to Entergy Mississippi, Inc. (EMI), and
10% to Entergy New Orleans, Inc. (ENOI).
<PAGE>
ANNUAL REPORT OF ENTERGY SERVICES, INC.
For the Year Ended December 31, 1999
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 Finance Operations Center 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, provides data required by various regulatory and other
agencies, and 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.
<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 26, 2000
