UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
* * * * * * * * * * * * * * * * *
In the Matter of *
*
ENTERGY CORPORATION * CERTIFICATE
ENTERGY ENTERPRISES, INC. * PURSUANT TO RULE 24
*
File No. 70-7851 *
File No. 70-7947 *
File No. 70-8002 *
File No. 70-8010 *
File No. 70-8105 *
*
(Public Utility Holding Company *
Act of 1935) *
* * * * * * * * * * * * * * * * *
Pursuant to Rule 24 promulgated by the Securities and
Exchange Commission (SEC) under the Public Utility Holding
Company Act of 1935, as amended (Act), modified by the
application(s) - declaration(s), as amended, in the above
referenced files and the related orders dated July 25, 1991,
December 14, 1992(2), December 28, 1992 and July 8, 1993,
respectively, this is to certify that the following transactions
were carried out during the three (3) months ended June 30, 1994
by Entergy Enterprises, Inc. (formerly Electec, Inc.) pursuant to
the authorization of the SEC.
Programs Authorized
Pursuant to the Orders, Entergy Enterprises, Inc.
(Enterprises) was authorized during the quarter ended June 30,
1994 to (a) conduct preliminary development activities with
respect to various investment opportunities for the Entergy
System, (b) market management, operating, technical, training
and other expertise and intellectual properties developed by
System companies to non-affiliates, (c) render various consulting
services to certain affiliated companies in connection with
investments in Argentina, (d) be responsible for marketing the
expertise of Entergy Power, Inc. (EPI) gained through its bulk
power business, (e) provide certain management and support
services to associate companies excluding those which are
affiliated retail electric companies, exempt wholesale
generators, or foreign utility companies, and (f) develop and
field test a proposed telecommunications system for advanced
energy management and other utility applications.
During the quarter, Enterprises participated in the
following:
I. Preliminary Development Activities
Enterprises has been engaged in preliminary development
activities relating to investigating sites, research, contract
drafting and negotiations, acquiring options or rights,
partnership selection and other activities necessary to identify
and analyze investment opportunities for Entergy Corporation
(Entergy). These development activities include domestic and
international opportunities.
During the quarter, Enterprises expended $725,335 for
preliminary development activities associated with potential
investments that would qualify as "exempt wholesale generators"
under Section 32(a) of the Act. In addition, Enterprises
expended $233,383 for preliminary development activities
associated with potential investments that would qualify as
"foreign utility companies" under Section 33 of the Act.
Enterprises also expended $33,079 for preliminary development
activities associated with potential investments that would
qualify as "nonutility business." Finally, Enterprises expended
$272,205 and $130,201 for preliminary development activities
associated with demand side management activities and non-exempt
domestic wholesale generating and transmission facilities,
respectively.
II. Management Services Provided to Associate Companies
Enterprises provided certain management and support services
to its associate companies, EPI, Entergy S.A., Entergy Argentina
S.A. and Entergy Systems and Service, Inc. (Entergy SASI). In
regard to EPI, these services included marketing of EPI capacity
and energy to other utilities at wholesale, preparation of
contracts and regulatory filings, oversight of plant operations
and maintenance by plant operators, and procurement of
transmission services. In regard to Entergy S.A., Entergy
Argentina S.A. and Entergy SASI, these services were related to
management oversight.
III. Consulting Activities with Non-Associate Companies
Enterprises, under contract with Louisiana Hydroelectric
Ltd. Partnership, continues to provide an array of technical
services/support for a hydro electric transmission line project.
Certain Entergy Services, Inc. personnel are providing the
services.
IV. First Pacific Networks, Inc. Transactions
A. Description of Progress in Development and Testing of
CCLM/AFS
During the second quarter of 1994, Enterprises and First
Pacific Networks, Inc. (FPN) continued the development and
modification of FPN's PX System in order to create a Customer
Controlled Load Management/Automated Feedback System (CCLM/AFS)
for advanced energy management and other utility applications.
During this period, the Intelligent Utility Units and the in-
house networks that had been installed continued successful
operation of the program, shutdown and cycle of specific customer
appliances to operate during specific times of day as determined
by the customer and the utility. Also during this period,
software changes were being installed and tested in the host
simulator that is remotely located at the utility headquarters.
This temporarily suspended the ability to perform other tests
such as (a) providing the customer with time-of-use billing and
itemized appliance usage data, (b) turning power on or off to the
residence remotely, (c) report power outages automatically to the
utility, (d) remotely reading the customer's electric meter and
(e) estimate and validate kw load reduction potential for various
control options initiated by the utility. The Intelligent
Utility Unit presently installed is performing the Non-Intrusive
Appliance Load Monitoring operation that is the core technology
needed to perform itemized appliance usage data; however, the
accuracy of such data cannot be determined until the new host
simulator software is installed and tested. These software
changes were completed in July 1994. The other tests are
scheduled to be completed by the end of the year. Test results
will be used to evaluate third party supplied hardware and to
generate customer feedback as to the desired features of
CCLM/AFS.
B. Costs and Revenues Re: CCLM/AFS
Total costs incurred by Enterprises in connection with the
development, field testing and marketing of CCLM/AFS during the
three month period ending June 30, 1994 were $396,532.
Total costs incurred by FPN and billed for 1993 in
connection with the development, field testing and marketing of
CCLM/AFS were $966,296. No billings have been received from FPN
for product development since April 1993 and for field testing
since December 1993.
No revenues have been received by Enterprises in connection
with the CCLM/AFS product.
V. Financing, Amortization and Financial Statements
During the three months ended June 30, 1994:
A. Enterprises incurred amortization expenses relating to
the FPN license in the amount of $238,360 and to the organization
of Entergy SASI in the amount of $6,307.
B. Enterprises' unaudited unconsolidated Balance Sheet and
unconsolidated Income Statement for the six month period ended
June 30, 1994 are included as Exhibit 1.
<PAGE>
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 15th day of August, 1994.
ENTERGY CORPORATION
By: /s/ Lee W. Randall
Lee W. Randall
Vice President and
Chief Accounting Officer
ENTERGY ENTERPRISES, INC.
By: /s/ Terry L. Ogletree
Terry L. Ogletree
Executive Vice President
Exhibit 1
Page 1 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 1994
(UNAUDITED)
ASSETS
PROPERTY
Furniture and Equipment $ 744,919.53
Intangible Assets 88,298.50
---------------
Total Property 833,218.03
---------------
INVESTMENTS
Investment in FPN 9,531,240.00
Investment in Entergy SASI, Inc. 13,500,000.00
Earnings from Entergy SASI, Inc. (9,386,458.46)
--------------
13,644,781.54
--------------
CURRENT & ACCRUED ASSETS
Cash 301,199.67
Working Funds/Travel Advances 29,898.59
Temporary Cash Investments 2,335,080.08
Accounts Receivable 23,000.28
Accounts Receivable - Associated Companies 655,064.92
Accrued Interest 10,025.27
Prepaid Expenses 0.00
--------------
Total Current and Accrued Assets 3,354,268.81
--------------
DEFERRED DEBITS
Investments in Active Development 303,592.09
Reserve for Investments in Active Development (303,592.09)
FPN License (Net of Amortization) 2,554,601.46
Accumulated Deferred Income Tax-Fed & State 2,726,416.80
Miscellaneous Deferred Debits 819,470.13
--------------
Total Deferred Debits 6,100,488.39
--------------
Total Assets $23,932,756.77
==============
<PAGE>
Exhibit 1
Page 2 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 1994
(UNAUDITED)
CAPITAL
Common Stock $ 47,550,000.00
Retained Earnings (21,849,920.52)
---------------
Total Capital 25,700,079.48
---------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 529,671.14
Accounts Payable to Associated Companies 9,020.51
Taxes Accrued (4,107,469.19)
Tax Collections Payable 9,127.74
Miscellaneous Current & Accrued Liabilities 525,407.52
---------------
Total Current & Accrued Liabilities (3,034,242.28)
---------------
DEFERRED CREDITS
Long-Term Incentive Compensation 1,266,919.57
Other Deferred Credits ---------------
Total Deferred Credits 1,266,919.57
---------------
Total Liabilities (1,767,322.71)
---------------
Total Capital & Liabilities $ 23,932,756.77
===============
<PAGE>
Exhibit 1
Page 3 of 3
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED INCOME STATEMENT
SIX MONTHS ENDED JUNE 30, 1994
(UNAUDITED)
REVENUE
Services Rendered Non-Associates $ 100,287.16
Services Rendered Associates 687,437.57
Equity in Earnings of Subsidiaries (4,026,756.61)
Interest Income 41,713.64
Miscellaneous Income 548,169.12
--------------
Total Revenue (2,649,149.12)
--------------
EXPENSES
Salaries, Wages and Benefits 3,124,080.23
Outside Services 1,855,539.39
Rent 147,517.55
Administrative and General 672,592.96
Active Development Reserve 303,592.09
Insurance 32,325.20
Directors' Fees and Expenses 21,375.00
--------------
Total Administrative and General Expense 6,157,022.42
Taxes Other Than Income (9,886.24)
Depreciation and Amortization 146,579.28
Amortization of SASI Organization Costs 12,613.61
Amortization of FPN Organization Costs 514,877.49
Miscellaneous Expenses 31,607.40
--------------
Total Expenses 6,852,813.96
--------------
Interest Expense 0.00
--------------
Income (Loss) Before Income Taxes (9,501,963.08)
Income Taxes - Federal (Benefit) (1,952,871.68)
Income Taxes - State (Benefit) (485,185.51)
Provision for Deferred Income Taxes - Federal (98,525.90)
Provision for Deferred Income Taxes - State 0.00
--------------
Net Income (Loss) $(6,965,379.99)
==============
