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. 70-8002 *
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, July 8, 1993, and June
30, 1995, respectively, this is to certify that the following
transactions were carried out during the three (3) months ended
December 31, 1995 by Entergy Enterprises, Inc. (formerly Electec,
Inc.) pursuant to the authorization of the SEC.
Programs Authorized
Pursuant to the Orders, Entergy Enterprises, Inc.
(Enterprises) is authorized to (a) conduct preliminary
development activities with respect to various investment
opportunities for the Entergy System, (b) market to non-
associates the System's expertise and capabilities in energy-
related areas, including the expertise of Entergy Power, Inc.
(EPI) gained from its bulk power business, (c) market to non-
associates intellectual property developed by System companies,
(d) provide various consulting, management, administrative and
support services to associate companies, excluding certain
associate companies (Excluded Companies [FN]The Excluded
Companies are Entergy's retail operating companies (Arkansas
Power & Light Company, Louisiana Power & Light Company,
Mississippi Power & Light Company, New Orleans Public Service
Inc. and Gulf States Utilities Company), System Energy Resources,
Inc., System Fuels, Inc., Entergy Operations, Inc., Entergy
Services, Inc., and any other subsidiaries that Entergy may
create whose activities and operations are primarily related to
the domestic sale of electric energy at retail or at wholesale to
affiliates or the provision of goods or services thereto.), (e)
provide directly, or indirectly through one or more special
purpose subsidiary companies of Entergy or Enterprises, various
operations and maintenance services to non-associate or associate
companies (other than Excluded 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
During the quarter, 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 $3,371,873 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 $3,678,004 for preliminary development activities
associated with potential investments that would qualify as
"foreign utility companies" under Section 33 of the Act.
Enterprises also expended $275,446 for preliminary development
activities associated with potential investments that would
qualify as "nonutility business." Finally, Enterprises recorded
a credit due to prior overbilling of ($198,595)(due to $361,000
correction of expenses accrued in a previous quarter) and
$256,099 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., Entergy Systems and Service, Inc. (Entergy SASI), Entergy
Power Development Corporation (EPDC), and Entergy Pakistan, Ltd.
(EPL). Enterprises charged these companies for costs incurred
plus an indirect loading based upon current month Enterprises
administrative charges. In regard to EPI ($388,152.03), 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.($53,564.50), Entergy Argentina S.A.
($160,738.11), Entergy SASI ($16,113.78), EPDC
($9,100,306.81),and EPL ($78,302.23), these services were related
to management oversight and project development.
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. The Louisiana Hydroelectric Ltd. Partnership was
charged $13,000 for services rendered during this quarter.
IV. First Pacific Networks, Inc. Transactions
A. Description of Progress in Development and Field
Testing of CCLM/AFS
As previously reported during the third quarter of
1995, Enterprises concluded its CCLM testing program and
does not intend to resume testing of CCLM dedicated systems
in the foreseeable future. However, consistent with
Enterprises' authorization to engage in preliminary
development activities, Enterprises continues to
investigate other utility and energy related applications of
communications technologies, including automated meter
reading, power outage reporting and consumer accessible
information such as real-time meter information and bill
estimation systems. Amounts expended by Enterprises in
connection with such preliminary development activities are
reported as "nonutility business" related expenses under
Item "1" above.
B. Costs and Revenues Re: CCLM
Total costs incurred by Enterprises in connection with the
development, field testing and marketing of CCLM or other CCLM
systems during the three-month period ending December 31, 1995,
included a credit due to prior overbilling of ($237,544), due to
$361,000 correction of expenses accrued in a previous quarter.
Total costs incurred by FPN and billed for the three-month period
ending December 31, 1995 with respect to the testing and support
of CCLM or other CCLM systems were $75,000. Enterprises has
no information on costs incurred by FPN in connection with the
development or marketing of CCLM/AFS.
As previously reported, notwithstanding the amendment to the
License Agreement noted above, FPN may proceed independently with
the development of a CCLM system. Pursuant to the License
Agreement, as amended, in the event that FPN unilaterally
completes development of a CCLM system and makes it available for
commercialization, Enterprises has retained a license to use or
market CCLM within the service territory of the Entergy System.
Furthermore, Enterprises has rights under the amended License
Agreement to share in the revenues derived from the marketing of
CCLM by FPN to non-affiliates of Entergy. No such revenues were
received during the quarter.
V. Financing, Amortization and Financial Statements
During the three months ended December 31, 1995:
A. Enterprises incurred amortization expenses relating to
the FPN license in the amount of $156,517 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 twelve month period ended
December 31, 1995 are included as Exhibit 1.
<PAGE>
IN WITNESS WHEREOF, the undersigned companies have caused
this certificate to be executed on this 16th day of February, 1996.
ENTERGY CORPORATION
By: /s/Gerald D. McInvale
Gerald D. McInvale
Executive Vice President & Chief Financial Officer
ENTERGY ENTERPRISES, INC.
By:
Terry L. Ogletree
Executive Vice President
ENTERGY ENTERPRISES, INC. Exhibit 1
UNCONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 1995
(UNAUDITED)
ASSETS
PROPERTY
Furniture and Equipment $ 2,085,140.27
Intangible Assets 50,457.67
--------------------
Total Property 2,135,597.94
--------------------
INVESTMENTS
Investment in FPN 1,876,038.29
Investment in Entergy SASI, Inc. 138,500,000.00
Earnings from Entergy SASI, Inc. (46,704,063.45)
Special Deposits 30,000.00
--------------------
93,701,974.84
--------------------
CURRENT & ACCRUED ASSETS
Cash 361,927.03
Working Funds/Travel Advances 113,750.00
Temporary Cash Investments 4,482,334.17
Accounts Receivable 24,285.99
Accounts Receivable - Associated Companies 14,506,717.05
Accrued Interest 9,758.53
--------------------
Total Current and Accrued Assets 19,498,772.77
--------------------
DEFERRED DEBITS
Accumulated Deferred Income Tax-Fed & State 7,741,825.72
Miscellaneous Deferred Debits (215,678.69)
--------------------
Total Deferred Debits 7,526,147.03
--------------------
Total Assets $ 122,862,492.58
====================
These are interim financial statements prepared without notes.
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 1995
(UNAUDITED)
CAPITAL
Common Stock $ 54,400,000.00
Miscellaneous Paid-in Capital 125,000,000.00
Retained Earnings (67,387,676.97)
--------------------
Total Capital 112,012,323.03
--------------------
LIABILITIES
CURRENT & ACCRUED LIABILITIES
Accounts Payable 2,828,275.71
Accounts Payable to Associated Companies 542,368.96
Taxes Accrued 1,086,097.09
Tax Collections Payable 61,245.86
Miscellaneous Current & Accrued Liabilities 2,149,908.12
--------------------
Total Current & Accrued Liabilities 6,667,895.74
--------------------
DEFERRED CREDITS
Other Deferred Credits 4,182,273.81
--------------------
Total Deferred Credits 4,182,273.81
--------------------
Total Liabilities 10,850,169.55
--------------------
Total Capital & Liabilities $ 122,862,492.58
====================
These are interim financial statements prepared without notes.
ENTERGY ENTERPRISES, INC.
UNCONSOLIDATED INCOME STATEMENT
YEAR ENDED DECEMBER 31, 1995
(UNAUDITED)
REVENUE
Services Rendered Non-Associates $ 137,673.61
Services Rendered Associates 15,879,035.80
Equity in Earnings of Subsidiaries (30,457,116.22)
Interest Income 149,722.74
--------------------
Total Revenue (14,290,684.07)
--------------------
EXPENSES
Salaries, Wages and Benefits 11,258,954.27
Outside Services 6,558,580.78
Rent 1,427,145.45
Administrative and General 5,019,313.03
Active Development Credit (5,935,364.17)
Insurance 87,560.30
Directors' Fees and Expenses 59,003.22
--------------------
Total Administrative and General Expense 18,475,192.88
Taxes Other Than Income 15,148.52
Write-down of FPN License 1,617,342.60
Write-down of FPN Stock 7,655,201.72
Depreciation and Amortization 777,192.17
Amortization of SASI Organization Costs 25,227.22
Amortization of FPN Organization Costs 626,068.20
Miscellaneous Expenses 57,306.31
--------------------
Total Expenses 29,248,679.62
--------------------
Interest Expense 0.00
--------------------
Income (Loss) Before Income Taxes (43,539,363.69)
Income Taxes - Federal 464,955.53
Income Taxes - State (Benefit) (274,719.16)
Provision for Deferred Income Taxes - Federal (4,762,866.49)
Provision for Deferred Income Taxes - State (945,301.73)
--------------------
Net Income (Loss) $ (38,021,431.84)
====================
These are interim financial statements prepared without notes.
