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 December 31,
1993 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 December
31, 1993 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, 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 $398,815 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 $633,039 for preliminary development activities
associated with potential investments that would qualify as
"foreign utility companies" under Section 33 of the Act. II.
Management Services Provided to Associate Companies
Enterprises provided certain management and support services
to its associate companies, EPI, Entergy S.A. and Entergy
Argentina S.A. 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. and Entergy Argentina S.A., these services were related to
management oversight.
III. Consulting Activities with Non-Associate Companies
A. 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.
B. On July 14, 1993, Enterprises, in conjunction with
N.G. Gilbert, completed work under a professional services
contract with the Indonesian Public Utility to analyze and
develop a master plan to improve the management of the
distribution system on Java. A contract extension was
granted by the Indonesian Public Utility for continuance of
these services through September 14, 1993. A second
contract extension was granted through October 11, 1993. A
project completion report was submitted to the utility on
October 20. A Certificate of Completion from the utility
was issued on November 30, 1993. Enterprises utilized
contract personnel to complete the project.
C. In conjunction with its efforts to market specific
software products, Enterprises and Coopers & Lybrand (C&L)
jointly marketed a software license for Entergy's Customer
Information System (CIS) to Sacramento Municipal Utility
District (SMUD), in Sacramento, California. C&L is the
general contractor and Enterprises is the subcontractor to
provide certain specified technical services to customize
and install the software. Installation of CIS at SMUD was
completed on September 12, 1993. Consulting activity
continued until October 15, 1993. All billings related to
this project were completed by year end.
IV. First Pacific Networks, Inc. Transactions
A. Description of Progress in Development and Testing of
CCLM/AFS
During the fourth quarter of 1993, 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 CCLM/AFS system continued successful real-
time communication of meter readings with a computer host
simulator remotely located at the utility headquarters. Also
during this period installations of FPN's microprocessor-based
Intelligent Utility Units and the in-home network control devices
began in the test homes. FPN and Enterprises are continuing to
test the features of CCLM/AFS which will enable the utility to
perform such functions as: (a)program, shutdown and cycle
specific customer appliances to operate during specific times of
day as determined by the customer and utility, (b)provide time-of-
use billing and itemized appliance billing to the customer,
(c)turn power on or off to residences remotely, (d)report power
outages automatically to the utility, (e)remotely read the
customer's electric meter, (f)estimate and validate kW load
reduction potential for various control options initiated by the
utility, and (g)provide customers with a month-to-date bill
estimation. These specific tests are now completed with the
exceptions of itemized billing which is scheduled for completion
in April, 1994. 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
twelve month period ending December 31, 1993 were $495,134.
Total costs incurred by FPN and billed during the four month
period ending April 30, 1993 in connection with the development,
field testing and marketing of CCLM/AFS were $620,578. No
billings have been received from FPN since the April 1993
billing.
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 December 31, 1993:
A. Enterprises incurred amortization expenses relating to
the FPN license in the amount of $276,517 and to the organization
of Entergy Systems and Service, Inc. in the amount of $6,306.
Year to date these amounts were $1,106,068 and $25,224,
respectively.
B. Enterprises' unaudited unconsolidated Balance Sheet and
unconsolidated Income Statement are included as Exhibit 1.
<PAGE>
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 14th day of February,
1994.
ENTERGY CORPORATION
By: /s/Jack L. King
Jack L. King
Senior Vice President
ENTERGY ENTERPRISES, INC.
By: /s/Jack L. King
Jack L. King
President and
Chief Operating Officer
Exhibit 1
Page 1 of 2
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 1993
(UNAUDITED)
ASSETS
PROPERTY
Furniture & Equipment $ 713,876.90
---------------
Total Property 713,876.90
---------------
INVESTMENTS
Investment in FPN 9,744,146.88
Investment in SASI, Inc. 8,140,298.15
---------------
Total Investments 17,884,445.03
---------------
CURRENT & ACCRUED ASSETS
Cash 62,260.12
Working Funds/Travel Advances 25,448.59
Temporary Cash Investments 344,401.52
Accounts Receivable 100,191.71
Accounts Receivable to Associated Companies 2,401,169.68
Accrued Interest 2,007.41
Prepaid Expenses 0.00
---------------
Total Current & Accrued Assets 2,935,479.03
---------------
DEFERRED DEBITS
FPN License (Net of Amortization) 5,069,478.95
Accum Def Inc Tax-Fed & State 2,627,890.90
Miscellaneous Deferred Debits 52,380.75
---------------
Total Deferred Debits 7,749,750.60
---------------
Total Assets $ 29,283,551.56
===============
CAPITAL
Common Stock $ 43,550,000.00
Retained Earnings (14,884,540.53)
---------------
Total Capital 28,665,459.47
---------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 1,319,973.49
Accounts Payable to
Associated Companies 167,086.04
Taxes Accrued (1,667,412.00)
Tax Collections Payable 11,061.07
Miscellaneous Current
& Accrued Liability 287,385.00
---------------
Total Current & Accrued Liabilities 118,093.60
---------------
DEFERRED CREDITS
Other Deferred Credits 499,998.49
---------------
Total Deferred Credits 499,998.49
---------------
Total Liabilities 618,092.09
---------------
Total Capital & Liabilities $ 29,283,551.56
===============
Exhibit 1
Page 2 of 2
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED INCOME STATEMENT
TWELVE MONTHS ENDED DECEMBER 1993
(UNAUDITED)
REVENUE
Services Rendered Non-Associates $ 1,248,551.48
Services Rendered Associates 2,305,838.64
Equity in Earnings of Subsidiaries (4,111,666.77)
Interest Income 55,612.84
Miscellaneous Income 165.39
----------------
Total Revenue (501,498.42)
----------------
EXPENSES
Taxes Other Than Income 48,752.69
Depreciation and Amortization 164,254.46
Amortization of SASI Organ Costs 25,224.30
Amortization of FPN License Costs 1,106,068.08
Salaries and Wages and Benefits 3,164,445.61
Outside Services 4,115,396.65
Rent 97,483.58
Administrative & General 1,195,923.76
Insurance 28,551.48
Directors' Fees and Expenses 59,221.28
Miscellaneous Expense 37,820.10
----------------
Total Expenses 10,043,141.99
----------------
Interest Expense 10,558.33
----------------
Income (Loss) Before Income Taxes (10,555,198.74)
Income Taxes - Federal (Benefit) (1,667,412.00)
Income Taxes - State (Benefit) 0.00
Provision for Def. Inc. Taxes-Federal (Benefit) (2,131,166.96)
Provision for Def. Inc. Taxes-State (Benefit) (3,459.00)
----------------
Net Income (Loss) $ (6,753,160.78)
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