UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1997 and Ending December 31, 1997
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
ENTERGY ENTERPRISES, INC.
_________________________________________________________________
(Exact Name of Reporting Company)
A Subsidiary Service Company
____________________________________
("Mutual " or "Subsidiary")
Date of Incorporation December 30, 1983. If not Incorporated, Date
of Organization _________________ State or Sovereign Power under
which Incorporated or Organized Louisiana Location of Principal
Offices of Reporting Company 900 S. Shackleford, Little Rock, Arkansas 72211
Name, title and address of officer to whom correspondence concerning this
report should be addressed: Mr. Robert J. Cushman Vice President - Finance
P.O. Box 61000, New Orleans, La. 70161
Name of Principal Holding Company Whose Subsidiaries are served
by Reporting Company:
Entergy Corporation
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2 of 28 pages (Blank)
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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 become 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 (SS210.3-01(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, 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.
3 of 28 pages
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LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account Number Number
Comparative Balance Sheet Schedule I 5-6
Service Company Property Schedule II 7
Accumulated Provision for Depreciation and Schedule III 8
Amortization of Service Company Property
Investments Schedule IV 9
Accounts Receivable from Associate Companies Schedule V 10
Fuel Stock Expenses Undistributed Schedule VI 11
Stores Expense Undistributed Schedule VII 11
Miscellaneous Current and Accrued Assets Schedule VIII 12
Miscellaneous Deferred Debits Schedule IX 12
Research, Development, or Demonstration Expenditures Schedule X 12
Proprietary Capital Schedule XI 13
Long-Term Debt Schedule XII 14
Current and Accrued Liabilities Schedule XIII 15
Notes to Financial Statements Schedule XIV 15
Comparative Income Statement Schedule XV 16
Analysis of Billing - Associate Companies Account 457 17
Analysis of Billing - Nonassociate Companies Account 458 18
Analysis of Charges for Service - Associate and Schedule XVI 19
Nonassociate Companies
Schedule of Expense of Department or Service Function Schedule XVII 20
Departmental Analysis of Salaries Account 920 21
Outside Services Employed Account 923 21
Employee Pensions and Benefits Account 926 22
General Advertising Expenses Account 930.1 22
Miscellaneous General Expenses Account 930.2 23
Rents Account 931 23
Taxes Other Than Income Taxes Account 408 24
Donations Account 426.1 24
Other Deductions Account 426.5 25
Notes to Statement of Income Schedule XVIII 25
Annual Report of Entergy Integrated Solutions, Inc. 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
Disclaimer of Subsidization 27
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<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
Schedule I - Comparative Balance Sheet
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) $9,732,364 $5,963,020
107 Construction work in progress (Schedule II) 275,929
----------- ------------
Total Property 10,008,293 5,963,020
----------- ------------
108 Less accumulated provision for depreciation and amortization of service
company property (Schedule III) 3,169,476 2,324,315
----------- ------------
Net Service Company Property 6,838,817 3,638,705
----------- ------------
Investments
123 Investments in associate companies (Schedule IV) 59,511,557 80,448,888
124 Other Investments (Schedule IV)
128 Special Funds (Schedule IV) 372,121 82,993
----------- ------------
Total Investments 59,883,678 80,531,881
----------- ------------
Current and Accrued Assets
131 Cash 985,949 2,042,513
135 Working funds 466,712 260,990
136 Temporary cash investments (Schedule IV) 7,900,669
142 Customer Accounts Receivable (643)
143 Accounts receivable 107,464 (15,168)
144 Accumulated provision of uncollectible accounts
146 Accounts receivable from associate companies (Schedule V) 14,854,532 26,308,349
152 Fuel stock expenses undistributed (Schedule VI)
154 Materials and supplies
163 Stores expense undistributed (Schedule VII)
165 Prepayments 194,736
174 Miscellaneous current and accrued assets (Schedule VIII) 16,964
----------- ------------
Total Current and Accrued Assets 24,526,383 28,596,684
----------- ------------
Deferred Debits
181 Unamortized debt expense
184 Clearing accounts
186 Miscellaneous deferred debits (Schedule IX) (2,369,746) (980,702)
188 Research, development, or demonstration expenditures (Schedule X)
190 Accumulated deferred income taxes 6,653,037 9,074,876
----------- ------------
Total Deferred Debits 4,283,291 8,094,174
----------- ------------
TOTAL ASSETS AND OTHER DEBITS $95,532,169 $120,861,444
=========== ============
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<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
Schedule I - Comparative Balance Sheet
Account Account Liabilities and Proprietary Capital
As of December 31
Current Prior
Proprietary Capital
<S> <C> <C> <C>
201 Common stock issued (Schedule XI) $57,400,000 $57,400,000
211 Miscellaneous paid-in-capital (Schedule XI) 153,000,000 150,000,000
216 Unappropriated retained earnings (Schedule XI) (141,921,568) (108,951,736)
------------ ------------
Total Proprietary Capital 68,478,432 98,448,264
------------ ------------
Long-Term Debt
223 Advances from associate companies (Schedule XII) 4,500,000
224 Other long-term debt (Schedule XII)
225 Unamortized premium on long-term debt
226 Unamortized discount on long-term debt-debit
227 Capital Leases
------------ ------------
Total Long-Term Debt 4,500,000
------------ ------------
Current and Accrued Liabilities
231 Notes payable
232 Accounts payable 8,783,989 9,295,609
233 Notes payable to associate companies (Schedule XIII)
234 Account payable to associate companies (Schedule XIII) 5,274,365 1,077,669
236 Taxes accrued (1,880,913) 702,794
237 Interest accrued
238 Dividends declared
241 Tax collections payable 102,156 (114,979)
242 Miscellaneous current and accrued liabilities (Schedule XIII) 9,033,521 5,401,980
------------ ------------
Total Current and Accrued Liabilities 21,313,118 16,363,073
------------ ------------
Deferred Credits
253 Other deferred credits (See Note 9) 1,240,619 6,050,107
255 Accumulated deferred investment tax credits
------------ ------------
Total Deferred Credits 1,240,619 6,050,107
------------ ------------
282 Accumulated Deferred Income Taxes
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $ 95,532,169 $120,861,444
============ ============
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule II - Service Company Property
Balance at Retirements Balance
Beginning or Other (1) at Close
Description of Year Additions Sales Changes of Year
Service Company Property
Account
<S> <C> <C> <C> <C> <C> <C>
301 Organization $126,136 $ 126,136
303 Miscellaneous Intangible Plant (856) (856)
304 Land and Land Rights
305 Structures and Improvements
306 Leasehold Improvements 1,882,534 1,602,513 366,722 3,118,325
307 Equipment
308 Office Furniture and
Equipment 3,955,206 2,742,249 208,696 6,488,759
309 Automobiles, Other Vehicles
and Related Garage Equipment
310 Aircraft and Airport Equipment
311 Other Service Company
Property (3)
--------------------------------------------------------
SUB-TOTAL 5,963,020 4,344,762 575,418 9,732,364
107 Construction Work in Progress 275,929 275,929
--------------------------------------------------------
TOTAL $5,963,020 $4,620,691 $575,418 $10,008,293
========================================================
(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:
Balance at
Subaccount Description Additions Close of Year
Office Furniture and Equipment
Furniture $1,219,027 $2,763,771
Computer Equipment 550,719 2,169,813
Telephone 763,808 1,555,175
---------- ----------
TOTAL $2,533,554 $6,488,759
========== ==========
(3) Describe other service company property:
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule III - Accumulated Provision for Depreciation
and Amortization of Service Company Property
</TABLE>
<TABLE>
<CAPTION>
Balance at Additions Other Balance
Beginning Charged to Changes Add at Close
Description of Year Account 403 Retirements (Deduct) (1) of Year
Account
<S> <C> <C> <C> <C> <C> <C>
301 Organization $ 100,905 $ 25,230 $ $ 126,135
303 Miscellaneous Intangible Plant
304 Land and Land Rights
305 Structures and Improvements
306 Leasehold Improvements 704,205 3,882 700,323
307 Equipment
308 Office Furniture and Fixtures 1,519,205 823,813 2,343,018
309 Automobiles, Other Vehicles
and Related Garage Equipment
310 Aircraft and Airport Equipment
311 Other Service Company Property
-----------------------------------------------------------
TOTAL $2,324,315 $ 849,043 $3,882 $3,169,476
===========================================================
(1) Provide an explanation of those changes considered material:
</TABLE>
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule IV - Investments
Instructions:
Complete the following schedule concerning investments.
Under Account 124 "Other Investments," state each investment separately,
with description, including, the name of issuing company, number of
shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each investment
separately.
Balance at Balance at
Description Beginning of Year Close of Year
Account 123 - Investment in Associate Companies
Entergy Integrated Solutions, Inc. (13,500
Shares Common Stock) $77,619,369 $53,542,375
Entergy Operations Services, Inc. (3,000
Shares Common Stock) 2,829,519 2,483,564
Entergy Nuclear, Inc. (3,000 Shares Common
Stock) 0 3,485,618
Account 128 - Special Funds
California, Florida, Houston, Singapore,
Washington & EOSI office security deposits 82,993 372,121
Account 136 - Temporary Cash Investments
Commercial paper 0 8,448,430
Money market 0 (547,761)
----------- -----------
TOTAL $80,531,881 $67,784,347
=========== ===========
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule V - Accounts Receivable from Associate Companies
Instructions:
Complete the following schedule listing accounts receivable from each
associate company. Where the service company has provided accommodation
or convenience payments for associate companies, a separate listing of
total payments for each associate company by subaccount should be
provided.
Balance at Balance at
Description Beginning of Close of
Year Year
<S> <C> <C>
Account 146 - Accounts Receivable from Associate Companies
Entergy Richmond Power Corp. $14,631 $0
Entergy Power Development Corp. 5,950,724 1,559,217
Entergy Retail Services 0 1,112,311
Entergy S.A. 658 658
Entergy Power Development International Corp. 10,393,507 4,009,365
Entergy Power, Inc. 332,088 122,380
Entergy Power Edegel 3,607,123 186,003
Entergy ISI 73,093 348,413
Entergy Pakistan, Ltd. 24,570 18,515
Entergy Power CBA Holding, Ltd. 85,538 118,083
Entergy Power Marketing Corp. 1,053,972 1,286,627
Entergy Operations Services, Inc. 100,603 16,507
Entergy Power Operations Corp. 908,031 3,029,507
Entergy Power Edesur Holding 86,179 (4,503)
Entergy Technologies Holding Co. 3,677,603 610,408
Entergy Power Operations Pakistan, Ltd. 29 0
Entergy Services Inc. 0 (160,033)
Entergy Holdings Inc. 0 239,341
Entergy Power Generation Corp. 0 315,040
Entergy Power International Holdings Corp. 0 176,409
Entergy Security Co. 0 107,412
Entergy Technologies Corp. 0 83,947
Entergy Enterprises Inc. (Divisions) 0 809,607
Entergy International Ltd. 0 344,881
Entergy Nuclear Inc. 0 159,010
Entergy Arkansas 0 365,427
----------- -----------
TOTAL $26,308,349 $14,854,532
=========== ===========
Total
Analysis of Convenience or Accommodation Payments: Payments
Entergy Integrated Solutions, Inc. - Consulting $2,107,165
----------
TOTAL PAYMENTS $2,107,165
==========
</TABLE>
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule VI - Fuel Stock Expenses Undistributed
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 None None None
Undistributed
-------------------------------------
TOTAL $ 0 $ 0 $ 0
=====================================
Summary:
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule VII - Stores Expense Undistributed
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 None None None
-----------------------------------
TOTAL $ 0 $ 0 $ 0
===================================
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule VIII - Miscellaneous Current and Accrued Assets
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
Interest Receivable on Temporary Investments $ 0 $ 9,390
Other 0 7,574
-------- --------
TOTAL $ 0 $ 16,964
======== ========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule IX - Miscellaneous Deferred Debits
Instructions:
Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items
in each class.
Balance at Balance at
Description Beginning Close of
of Year Year
Account 186 - Miscellaneous Deferred Debits
Employee Benefits $(1,068,792) $(2,433,593)
Non-Productive Time 83,490 63,847
Intercompany Suspense 4,600 0
----------- -----------
TOTAL $ (980,702) $(2,369,746)
=========== ===========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
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 $ 0
========
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XI - Proprietary Capital
<TABLE>
<CAPTION>
Number of
Shares Par of Stated Outstanding Close of Period
Account Number Class of Stock Authorized Value Per Share No. of Shares Total Amount
<S> <C> <C> <C> <C>
201 Common Stock Issued 100,000 None 57,400 $57,400,000
</TABLE>
Instructions:
Classify amounts in each account with brief explanation, disclosing the general
nature of transactions which gave rise to the reported amounts.
Description Amount
Account 211 - Miscellaneous Paid-in Capital
Capital contribution from Entergy Corp.
to invest in Entergy ISI and Entergy
Nuclear $153,000,000
Account 215 - Appropriated Retained Earnings None
------------
TOTAL $153,000,000
============
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.
Balance at Net Income Dividends Balance at
Beginning -or (loss) Paid Close of
Description of Year Year
Account 216 - $(108,951,736) $(32,969,832) None $(141,921,568)
Unappropriated
Retained Earnings
-----------------------------------------------------
TOTAL $(108,951,736) $(32,969,832) None $(141,921,568)
=====================================================
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XII - Long-Term Debt
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.
<TABLE>
<CAPTION>
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(1) of Year
<S> <C> <C> <C> <C>
Account 223 - Advances from
Associate
Companies: Entergy Corporation $ 0 $4,500,000 $4,500,000
Account 224 - Other Long-Term
Debt: None None
--------------------------------------------
TOTAL $ 0 $4,500,000 $4,500,000
============================================
</TABLE>
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XIII - Current and Accrued Liabilities
Instructions:
Provide balance of notes and accounts payable to each associate company.
Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number
of items in each group.
Balance at Balance at
Description Beginning Close of
of Year Year
Account 233 - Notes Payable to Associate Companies None None
----------- -----------
TOTAL $ 0 $ 0
=========== ===========
Account 234 - Accounts Payable to Associate Companies
Entergy Services, Inc. $ 702,567 $2,042,103
Entergy Power, Inc. 13,200 0
Entergy Power S.A. 8,645 8,645
Entergy Power Marketing Corp. 302,920 165,324
Entergy Corporation 50,337 35,576
Entergy Retail Services 0 2,138,110
Entergy Enterprises Inc. (Divisions) 0 809,607
Entergy Power Asia Ltd. 0 75,000
---------- ----------
TOTAL $1,077,669 $5,274,365
========== ==========
Account 242 - Miscellaneous Current and
Accrued Liabilities
Benefit Plans $3,144,126 $7,809,672
Outside Directors Stock Plan (22,201) (8,833)
Accrued Liabilities - Office Relocations 2,280,055 1,232,682
---------- ----------
TOTAL $5,401,980 $9,033,521
========== ==========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
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 15-A through 15-E
15 of 28 pages
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ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC.
(UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XIV - Notes to Financial Statements
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
Entergy Enterprises, Inc. (Enterprises or the Company),
formerly Electec, Inc., is a diversified subsidiary of
Entergy Corporation (Entergy) chartered in December 1983 to
market the Entergy System's (the System) capabilities,
expertise, and resources, and to engage in preliminary
development activity relating to investments in qualifying
facilities under the Public Utility Regulatory Policies Act
(PURPA).
Enterprises' principal activities now include; (1)
preliminary development activities with respect to various
investment opportunities for the Entergy System, (2) 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, (3)
market to non-associates intellectual property developed by
System companies, (4) provide various consulting,
management, administrative and support services to associate
companies, excluding certain associate companies, (5)
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 the excluded companies),
and (6) develop and field test a proposed telecommunications
system for advanced energy management and other utility
applications.
Enterprises was first authorized to conduct business as a
subsidiary company for the System by order of the SEC dated
January 11, 1983.
All transactions between Enterprises and the System
companies are on a full cost reimbursement basis.
B. System of Accounts
The accompanying financial statements include the accounts
of Enterprises. The financial statements report
Enterprises' subsidiary, Entergy Systems and Service, Inc.
(Entergy Systems) under the equity method of accounting for
investments in common stock. The accounts of Enterprises
are maintained in accordance with the system of accounts
prescribed by the SEC.
C. Cash and Cash Equivalents
For the purpose of Statement of Cash Flows, Enterprises
considers all highly liquid instruments purchased with an
original maturity of three months or less to be cash
equivalents.
D. Depreciation and Amortization
Depreciation is computed on the declining balance method for
Enterprises over the estimated useful lives of the furniture
and equipment. Leasehold costs and improvements are
amortized over their estimated useful lives (five years).
E. Goodwill
Intangible assets consist primarily of goodwill that
represents the excess of cost over the fair value of net
assets acquired, and the balance is being amortized over
five years using the straight-line method.
F. Use of Estimates in the Preparation of Financial Statements
The preparation of 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 at the date of the
financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results
could differ from those estimates.
G. Income Taxes
The company accounts for income taxes pursuant to Statement
of Financial Accounting Standards No. 109 "Accounting For
Income Taxes" (FAS 109). This standard requires that
deferred income taxes be recorded for all temporary
differences between the financial statement and tax basis of
assets and liabilities and loss carryforwards, and that
deferred tax balances be based on enacted tax laws at tax
rates that are expected to be in effect when the temporary
differences reverse.
The Company joins its parent and the other Entergy
subsidiaries in filing a consolidated Federal income tax
return. Income taxes (or benefits) are allocated to the
Company in proportion to its contribution to consolidated
taxable income.
2. TRANSACTIONS WITH AFFILIATES
Entergy Services provides technical and consulting services
and other assistance to Enterprises at cost (except as
indicated in Note 1) which amounted to $16,348,000,
$4,367,000 and $2,875,000 for the years 1997, 1996 and 1995,
respectively.
3. INCOME TAXES
The tax sharing agreement with Entergy provides that the
Company will receive tax benefit for its taxable loss.
Accordingly, a long-term receivable has been recorded at
December 31, 1997 to reflect the tax benefit of the
Company's cumulative loss in jurisdictions in which the
Company files combined or consolidated returns. (Federal,
Arkansas, and Mississippi for 1997)
Deferred income taxes are provided in recognition of
temporary differences between the financial reporting and
income tax basis of assets and liabilities and loss
carryforwards. Deferred income tax assets (liabilities) are
comprised of the following at December 31, 1997 and 1996.
1997 1996
Deferred Tax Assets/(Liabilities):
Equipment and fixed assets 2,334,895 273,578
Deferred charges and other 541,620 3,203,615
Unrealized loss on marketable securities 2,142,726 2,142,726
Other intangible assets 1,198,646 1,665,592
Business Development Assignment 435,150 1,789,365
State net operating loss carryforwards 325,753 325,753
----------- -----------
Gross deferred tax asset/(liability) 6,978,790 9,400,629
State Deferred tax valuation allowance (325,753) (325,753)
----------- -----------
Net Deferred Tax Assets/(Liabilities) $ 6,653,037 $ 9,074,876
=========== ===========
The ultimate realization of these deferred tax assets is
dependent upon future taxable income sufficient to offset
the related deductions and loss carryforwards within the
applicable carryforward period. The valuation allowance is
based upon management's conclusions that sufficient positive
evidence, as defined as FAS 109, regarding the realization
of certain tax carryforward items does not exist and
generally relate to state loss carryforwards in states in
which Entergy or its subsidiaries do not file a combined or
consolidated return.
The provision for intercompany (benefit) expense in lieu of
federal income taxes for the year ended December 31, 1997
and 1996 consisted of the following:
1997 1996
(In dollars)
Current:
Federal $(6,485,166) $ 265,910
State (1,085,819) 98,270
----------- ----------
Total Current Income Tax Expense (Benefit) (7,570,985) 364,180
----------- ----------
Deferred:
Federal 1,595,566 (1,443,681)
State 826,273 110,630
Valuation Allowance - -
----------- ----------
Total Deferred Income Tax Expense 2,421,839 (1,333,051)
----------- ----------
Recorded income tax expense $(5,149,146) $ (968,871)
=========== ==========
The Company's total income taxes differ from the amounts
computed by applying the statutory Federal income tax rate
to income before taxes. The primary reason for the
difference is the effect of state income taxes.
At December 31, 1997, the Company had net operating loss
carryforwards available for state income tax reporting
purposes of approximately $3.3 million. These net operating
loss carryforwards expire during various periods through
2011 depending on the taxing jurisdiction.
4. INVESTMENT IN FIRST PACIFIC NETWORKS, INC. (FPN)
During 1995, the Company experienced a continuing decline in
market value per share of its investment in the common stock
of FPN, and management determined that the decline in market
value of the FPN investment was other than temporary.
Accordingly, in 1995 the Company recognized such decline in
the market value of its FPN investment in its results of
operations as an other than temporary decline. In December
1996, the Company wrote-off the book value of its investment
in FPN.
In March 1994, Enterprises consummated with FPN an amendment
to a Product License Agreement (the "License Agreement")
entered into in July 1991 in connection with utility
applications, being jointly developed by Enterprises and
FPN, for FPN's patented communications technology. The
original License Agreement primarily provided Enterprises an
exclusive irrevocable license to make, use and sell the
"Core Technology" in the "New Products" and sub-license to
"Qualifying Utilities" the right to manufacture and provide
the New Products to end users. The amendment removed
Enterprises' right to manufacture or have manufactured the
New Products. As consideration for the amendment of its
rights, Enterprises received $2 million upon the execution
of the amendment, which was recorded as a reduction of its
investment in the original license agreement amount, and a
$7 million unsecured, non-interest bearing obligation
payable on demand after March 15, 1998. Given FPN's limited
success to date in commercializing its patented
communications technology, Enterprises is uncertain as to
FPN's ability to meet its $7 million obligation.
Consequently, Enterprises has fully reserved this
receivable.
As a result of reliability problems encountered in
connection with the testing of the New Products on May 24,
1995, Enterprises and FPN entered into a new amendment to
the Product (the "Second Amended Agreement"), which, among
other things, (i) terminated the parties' joint effort to
complete the development of the New Products, (ii) retained
and expanded Enterprises' exclusive license to make, use and
market the New Products within the territorial limits of the
Entergy System; and (iii) modified Enterprises' right to
share in revenues derived from the marketing of the new
Products outside the Entergy System. Although the Second
Amended Agreement contemplates that FPN may proceed
independently with the development of the New Products,
given the above referenced problems and the resulting
uncertainty concerning the long-term commercial success of
the New Products, the Company has recognized a $1.6 million
loss on the write-down of the remaining unamortized balance
of the product license fee at December 31, 1995.
5. INVESTMENT IN SYSTEMS AND SERVICE INTERNATIONAL, INC.
In 1992, Enterprises formed a new subsidiary, Entergy
Integrated Solutions, Inc. (EISI), formerly Entergy Systems
and Service, Inc., to enter into the business of providing
energy management services with an initial focus on
efficient lighting technologies. On December 29, 1992,
Entergy Systems acquired a 9.95% equity interest in Systems
and Service International, Inc. (SASI), a manufacturer of
efficient lighting products. Entergy Systems also made a
loan to SASI, acquired the business and assets of SASI's
distribution subsidiary, and entered into an agreement to
distribute SASI's products.
In April, 1995, Entergy Systems consummated a series of
transactions with SASI which, among other things; amended
the existing Distribution Agreement to provide for lower
prices and eliminated minimum order quantities; provided for
Entergy System's purchase of certain additional SASI
developed technology; provided for a Confidentiality and Non-
Competition Agreement with SASI; and provided for the
redemption of Entergy System's common stock investment in
SASI.
In January 1997, EIS exercised its option to buy certain
Patents ($250,000) and other technology assets ($850,000)
from SASI which have ceased business operations.
6. COMMON STOCK
At December 31, 1997, Enterprises is authorized, by its
Charter, to issue 100,000 shares of its common stock.
During 1997, Enterprises issued 3,000 shares of common stock
for $3 million primarily to fund Entergy Nuclear Inc., a
subsidiary of Entergy Enterprises, Inc.
It is anticipated that Enterprises' cash flow generated by
ongoing operations may not be sufficient to fund all of
Enterprises' obligations. On June 30, 1995, the SEC
authorized Entergy to invest up to $350 million through
December 31, 1997 in Enterprises. In addition to common
stock, such investments may take the form of capital
contributions, loans, and/or guarantees of the indebtedness
or other obligations of Enterprises or certain of its
affiliated companies.
7. COMMITMENTS & CONTINGENCIES
In June 1993, Catalyst Technologies, Inc. (CTI) filed a
petition in the Civil District Court for the Parish of
Orleans, Louisiana (CDC) , against Electec, Inc., now named
Entergy Enterprises, Inc. (EEI), which is a wholly-owned non-
utility subsidiary of Entergy Corporation. The petition
alleged, among other things, breach of contract, and breach
of the obligation of good-faith and fair dealing. On August
8, 1997, a jury in the CDC returned a verdict against EEI in
the amount of $346 million plus interest of approximately
$118 million. On November 15, 1997 the trial judge entered
a judgment notwithstanding the verdict in the CTI lawsuit.
Finding as a matter of law that the jury's verdict was
incorrect, the judge ruled that no contract ever existed
between CTI and Entergy Enterprises, and that the verdict
was contrary to the law and the evidence. CTI has appealed
this ruling to the Louisiana Court of Appeal for the Fourth
Circuit. No date for the filing of appellate briefs or oral
argument has been set. On September 30, 1997, CTI filed
another lawsuit against Entergy Corporation, Entergy
Services, Entergy Enterprises and certain individuals who
are, or at one time were, directors of those corporations.
The suite claims, among other things, that CTI suffered
damages as a result of actions on the part of Entergy that
allegedly caused the individual defendants to breach their
fiduciary duties owed to Entergy Enterprises and,
indirectly, to CTI as Entergy Enterprises' judgment
creditor. After the decision of the trial judge in the
original CTI suite, CTI voluntarily moved to dismiss this
proceeding, and it was dismissed without prejudice on
January 16, 1998.
Panda Energy Corporation (Panda) has commenced litigation in
the Dallas District Court naming Entergy, Entergy
Enterprises, Entergy Power Incorporated, Entergy Power Asia
LTD, and the Company as defendants. The allegations against
the defendants include, among others, tortuous interference
with contractual relations, conspiracy, misappropriation of
corporate opportunity, unfair competition and fraud, and
constructive trust issues. Panda seeks damages of
approximately $4.8 billion, of which $3.6 billion is claimed
in punitive damages. During 1996, the trial court granted
an order that was, in effect, a summary judgment in favor of
the defendants. However, Panda Energy Corporation has
appealed and all parties have filed their briefs and are
awaiting the appellate court's decision. The Company and
Entergy continue to believe that this lawsuit is without
merit, that the damages claimed are not supportable, and
that some or all of the claims against Entergy will be
dismissed.
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XV Statement of Income
Account Description Current Year Prior Year
Income
<S> <C> <C> <C>
457 Services rendered to associate companies $48,358,384 $15,879,036
458 Services rendered to nonassociate companies 59,562 137,673
418 Subsidiary Income (22,937,331) (30,457,116)
419 Interest Income 390,704 149,723
421 Miscellaneous income or loss (380,904) 0
------------ ------------
Total Income 25,490,415 (14,290,684)
------------ ------------
Expense
920 Salaries and wages 25,216,073 10,574,432
921 Office supplies and expenses 15,751,408 4,977,511
922 Administrative expense transferred - credit (5,782,215) (5,935,364)
923 Outside services employed 20,155,172 6,558,581
924 Property insurance 24,576 56,179
925 Injuries and damages 157,707 31,381
926 Employee pensions and benefits 665,577 684,522
928 Regulatory commission expense 0 0
930.1 General advertising expenses 48,156 29,001
930.2 Miscellaneous general expenses 198,205 61,156
931 Rents 3,768,988 1,427,145
932 Maintenance of structures and equipment 62,496 10,648
940 Active Development 0 0
403 Depreciation and amortization expense 2,037,137 1,428,488
408 Taxes other than income taxes 267,465 15,149
409 Income taxes (7,570,985) 190,236
410 Provision for deferred income taxes 2,421,839 (5,708,168)
416 Cost & Expense of Merchandising 1,013,697 0
426.1 Donations 8,250 32,090
426.5 Other deductions 16,375 9,297,761
431 Other interest expense 326
------------ ------------
Total Expense 58,460,247 23,730,748
------------ ------------
Net Income or (Loss) ($32,969,832) ($38,021,432)
============ ============
</TABLE>
16 of 28 pages
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES,INC.(UNCONSOLIDATED)
For the Year Ended December 31, 1997
Analysis of Billing
Associate Companies - Account 457
Direct Indirect Compensation Total
Costs Costs For Use Amount
Name of Associate Company Charged Charged of Capital Billed
457-1 457-2 457-3
<S> <C> <C> <C> <C>
Entergy ISI $2,123,987 $0 $2,123,987
Entergy S.A. 71,516 19,494 91,010
Entergy Power International Holdings Corp. 262,111 53,535 315,646
Entergy Edesur 202,368 117,166 319,534
Entergy Transener S.A. 231,859 69,491 301,350
Entergy Operations Services Inc. 272,350 10,892 283,242
Entergy Richmond Power Corp. 20,833 6,481 27,314
Entergy Power Edegel Inc. 1,065,237 312,900 1,378,137
Entergy Power CBA Holding Ltd. 22,445 10,099 32,544
Entergy Pakistan, Ltd. 71,034 20,135 91,169
Entergy Power, Inc. 1,246,342 61,308 1,307,650
Entergy Power Development Corp. 14,306,747 7,743,864 22,050,611
Entergy Power Operations Corp. 2,733,836 705,900 3,439,736
Entergy Technologies Holding Company 1,567,927 1,903,837 3,471,764
Entergy Power Marketing Corp. 8,372,376 434,891 8,807,267
Entergy Power Development International 2,299,038 650,360 2,949,398
Entergy Power Generation Corp. 81,242 18,487 99,729
Entergy Technology Corp. 742,834 525,462 1,268,296
----------------------------------------------------
TOTAL $35,694,082 $12,664,302 - 0 - $48,358,384
====================================================
17 of 28 pages
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES,INC.(UNCONSOLIDATED)
For the Year Ended December 31, 1997
Analysis of Billing
Nonassociate Companies - Account 458
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 Charged Charged of Capital Cost Deficiency Billed
Company 458-1 458-2 458-3 458-4
<S> <C> <C> <C> <C> <C>
Vidalia-Catalyst
(Construction
Management) $ 0 $ 0 $ 0 $47,937 $47,937
SMUD 11,625 3,023 14,648 (3,023) 11,625
--------------------------------------------------------------
TOTAL $11,625 $3,023 $14,648 $44,914 $59,562
==============================================================
18 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES,INC.(UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XVI - Analysis of Charges for Service -
Associate and Nonassociate Companies
Total cost of service will equal for associate and nonassociate companies
the total amount billed under their separate analysis of billing schedules.
Nonassociate
Associate Company Charges 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
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 Salaries & wages $16,301,891 $5,783,929 $22,085,820 $10,000 $2,600 $12,600 $16,311,891 $5,786,529 $22,098,420
921 Office supplies
and expenses 13,771,297 4,886,072 18,657,369 0 0 0 13,771,297 4,886,072 18,657,369
922 Administrative expense
transferred -
credit (5,543,850) (1,966,964) (7,510,814) 0 0 0 (5,543,850) (1,966,964) (7,510,814)
923 Outside services
employed 8,739,221 3,100,686 11,839,907 1,625 423 2,048 8,740,846 3,101,109 11,841,955
924 Property insurance 0 0 0 0 0 0 0 0 0
925 Injuries and damages 19,850 7,043 26,893 0 0 0 19,850 7,043 26,893
926 Employee pensions
and benefits 120,781 42,853 163,634 0 0 0 120,781 42,853 163,634
930 General advertising
expenses 48,156 17,086 65,242 0 0 0 48,156 17,086 65,242
930.2 Miscellaneous general
expenses 203,081 72,053 275,134 0 0 0 203,081 72,053 275,134
931.0 Rents 2,005,536 711,567 2,717,103 0 0 0 2,005,536 711,567 2,717,103
932 Maintenance of
Structures and
Equipment 2,739 972 3,711 0 0 0 2,739 972 3,711
403 Depreciation and
amortization 25,230 8,952 34,182 0 0 0 25,230 8,951 34,182
expense
408 Taxes other than
income taxes 0 0 0 0 0 0 0 0 0
409 Income taxes 0 0 0 0 0 0 0 0 0
410 Provision for deferred
income taxes 0 0 0 0 0 0 0 0 0
416 Cost & Exp of
Merchandising 0 0 0 0 0 0 0 0 0
426 Donations 150 53 203 0 0 0 150 53 203
426.5 Other deductions 0 0 0 0 0 0 0 0 0
431 Other interest expense 0 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 35,694,082 12,664,302 48,358,384 $11,625 3,023 14,648 35,705,707 12,667,325 48,373,032
-------------------------------------------------------------------------------------------------------
Compensation for use of Equity
Capital
-------------------------------------------------------------------------------------------------------
430 Interest on debt to associate
companies 0 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $ 35,694,082 $12,664,302 $48,358,384 $11,625 $3,023 $14,648 $35,705,707 $12,667,325 $48,373,032
=======================================================================================================
19 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES,INC.(UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XVII - Schedule of Expense Distribution by
Department or Service Function
Instruction:
Indicate each department or service function. (See Instruction 01-3 General
Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
Account Description of Items Total Demand Side
Number Amount Executive Management Development Legal Administration
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries & wages $25,216,073 $ 2,708,683 $ 505,224 $6,450,966 $ 895,624 $4,407,092
921 Office supplies and expenses 15,751,408 6,996,238 221,690 3,817,884 314,664 1,354,231
922 Administrative expense transferred - credit (5,782,215) (273,816) (25,609) (3,137,346) (229,257) (681,626)
923 Outside services employed 20,155,172 8,184,745 3,136,148 3,405,916 1,289,175 1,106,667
924 Property insurance 24,576 20,183 237 4,156
925 Injuries and damages 157,707 130,350 750 351 7,506
926 Employee pensions and benefits 665,577 (6,246) 625 22,350 40,891 529,311
930.1 General advertising expenses 48,156 16,313
930.2 Miscellaneous general expenses 198,205 (1,689) 20 (4,015) 2,590
931 Rents 3,768,988 8,355 2,033 2,328,359 148 994,924
932 Maintenance of structures and
equipment 62,496 56,249 3,508
403 Depreciation and amortization expense 2,037,137 360,473 25,230 789,156 522,037
408 Taxes other than income taxes 267,465 220,928 9,047 5,849 29,032
409 Income taxes (7,570,985) (8,151,034) (205,596) 1,161,565
410 Provision for deferred income taxes 2,421,839 2,737,992 87,058 (764,920)
416 Cost & Exp of Merchandising 1,013,697 1,013,697
426.1 Donations 8,250 5,500 1,600
426.5 Other deductions 16,375 13,661 169 600
431 Other Interest Expense 326 326
-------------------------------------------------------------------------------
TOTAL EXPENSES $ 58,460,247 $13,968,346 $3,747,573 $13,755,467 $2,317,263 $8,678,273
===============================================================================
20 of 28 pages
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES,INC.(UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XVII - Schedule of Expense Distribution by
Department or Service Function
Instruction:
Indicate each department or service function. (See Instruction 01-3 General
Structure of Accounting System: Uniform System of Accounts).
DEPARTMENT OR SERVICE FUNCTION
Account Description of Items Bulk Entergy Technical Security
Number Power Power Mktg. Services Business
<S> <C> <C> <C> <C> <C>
920 Salaries & wages $64,663 $5,349,633 $4,512,519 $ 321,669
921 Office supplies and expenses 43,863 1,161,025 1,798,147 43,666
922 Administrative expense transferred - credit (1,434,561)
923 Outside services employed 44,001 1,776,206 1,067,682 144,632
924 Property insurance
925 Injuries and damages 18,750
926 Employee pensions and benefits 55,188 23,458
930.1 General advertising expenses 639 31,204
930.2 Miscellaneous general expenses 36,699 163,150 1,450
931 Rents 35,478 333,258 65,934 499
932 Maintenance of structures and
equipment 2,739
403 Depreciation and amortization expense 333,468 6,773
408 Taxes other than income taxes 2,609
409 Income taxes 6,425 (382,345)
410 Provision for deferred income taxes (2,657) 364,366
416 Cost & Exp of Merchandising
426.1 Donations 150 1,000
426.5 Other deductions 1,945
431 Other Interest Expense
-----------------------------------------------------
TOTAL EXPENSES $225,343 $ 9,227,380 $6,046,170 $494,432
=====================================================
20 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Departmental Analysis of Salaries - Account 920
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>
Executive $2,708,683 $2,372,435 $1,353 13
Development 17,204,674 15,068,934 8,597 101
Legal 895,624 784,444 448 8
Administration 4,407,092 3,860,008 2,202 109
----------------------------------------------------------
TOTAL $25,216,073 $22,085,821 $12,600 231
==========================================================
</TABLE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Outside Services Employed - Account 923
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-A thru 21-G $20,155,172
===========
21 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
Ablest Service Corp. P. O. Box 8000 NA 37,641
Buffalo, NY 14267
Accountemps P.O. Box 61000 NA 41,444
San Franciso, CA 94161-1683
Adams and Reese 4500 One Shell Square NA 126,287
New Orleans, LA 70139
Add-A-Temp 25025 I-45 N. #300 NA 55,646
Woodlands, TX 77380
Adirondack China Limited P. O. Box 692332 NA 32,000
Houston, TX 72269
Akin, Gump, Strauss, Hauer 1900 Penzoil Place NA 620,602
So. Tower 711 Louisiana Street
Houston, TX 77002
Allen & Overy National Westminster NA 47,779
London, England EC2P2AP
Authur Andersen, LLP (NO) P. O. Box 730260 NA 182,237
Dallas, TX 75373-0260
Arthur, Robinson & Hedderwicks GPO Box 1776Q NA 39,510
Melbourne, Australia
Asmara Limited 37 Soho Square NA 27,915
London, England WIV SDG
Beck, R. W. 2201 E. Camelback Rd. NA 37,500
Phoenix, AZ 85016-3433
Berkhemer/Clayton Inc. 800 North Alameda St. NA 41,262
Los Angeles, CA 90012
Black & Veatch P.O. Box 27-258 NA 27,270
Kansas City, MO 64180
Buchanan Ingersoll One Oxford Centre NA 158,049
301 Grant Street
Pittsburgh, PA 15219
21A of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
Cambridge Energy Research Asso Charles Square NA 118,367
20 University Rd.
Cambridge, MA 02138
Career Placement Temporaries 4444 Richmond Ave. NA 39,057
Houston, TX 77027-6798
Carregal & Funes Chemical Bank NA 90,881
Enhiesta, SA
Chadbourne & Parke 1101 Vermont Avenue NW NA 554,034
Washington, D. C. 20005
Clifford Chance 30th Floor Jardine House NA 51,672
One Connaught Place
Hong Kong
Cid de Azevedo Costa Junior Rua Cosme Velho 415 NA 35,477
Rio de Saneiro, Brazil 22241-090
Coopers & Lybrand - Checks P. O. Box 841221 NA 283,284
Dallas, TX 75284-1221
Coopers & Lybrand-London 1 Embankment Place NA 35,848
London WCZN 6NN
Coopers & Lybrand 1 Queen's Road Central NA 93,974
Hong Kong
Computer Systems Authority 6800 LBJ Freeway NA 100,900
Suite 181
Dallas, TX 75240
Cox, Mickey 1710 Royal Dr. NA 37,636
Conway, AR 72032
Cyberlan Techonologies P.O. Box 16443 NA 49,708
Little Rock, AR 72231
DLJ Securities Corp 277 Park Avenue NA 60,000
New York, NY 10172
21B of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
DecisionQuest 2050 West 190th Street NA 87,559
Torrance, CA 90504
Delaney, Andrew John 167 East 67th Street NA 28,093
New York , NY 10021
Duerod, Kurt 15603 South Marshfield NA 52,596
Harvey, IL 60426
Duke/Fluor Daniel Inc. P. O. Box 951311 NA 47,500
Dallas, TX 75395-1311
Ecoenergia de Brant Roberto Av. A Davilla 750 PB NA 52,857
Buenos Aires, Argentina 1107
Ellis, Richard, Chartered Surv Barclays Bank Plc NA 41,759
London, England EC3V
EnCon Associates 233 Needham Street NA 66,300
Newton, MA 02164
ENSR Consulting P.O. Box 17589 NA 37,925
Newark, NJ 07194
Entergy Enterprises, Inc. 900 S. Shackleford Road, A 150,979
Suite 210
Little Rock, AR 72211
Entergy Services, Inc. 639 Loyola Avenue A 8,680,585
New Orleans, LA 70113
Fernandez Quiroga & Onetto, Ab Reconguisha 379 Piso NA 33,541
Buenos Aires, Argentina
Friday, Eldridge & Clark 400 West Capitol NA 47,582
Little Rock, AR 72201
Frontier 7 Pic 9 Fridtjof Nanson Bl NA 29,245
Bulgaria
F.G. Hyde, Inc. 16316 E. Soriano Dr. NA 66,960
Hacienda Heights, CA 91745
General Physics Corporation P. O. Box 630635 NA 27,600
Baltimopre, MD 21263-0635
21C of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
Gensler, Inc. 4675 MacArthur Court NA 30,924
Newport Beach, CA 92660
Glen Irvine International Coutts & Co. NA 55,310
Mayfair London WIY 6DP
Gordon, Arata, McCollam 201 St Charles Ave NA 618,683
40th Floor
New York, NY 70170
Haley, Rick 331 HWY 287 NA 69,390
Greenbriar, AR 72058
Harza Engineering Company, Inc. 50 South LaSalle Str. NA 44,610
Chicago, IL 60675
Intercontinental Executive Gro P. O. Box 766 NA 62,400
Richboro, PA 18954-9998
International Gas Consulting 3200 Wilcrest #450 NA 131,538
Houston, TX 77042
N. Hunter Johnston 1776 Eye Street NW, Ste. 245 NA 45,479
Washington, D.C. 20006
Jones, Day, Reavis & Pogue Bucklersubury House NA 99,122
London, UK EC4N 8NA
Justic & Associates, Inc. 15818 Howard St. NA 51,000
Omaha, NE 68118-2108
Kenneth C Kern Personel Services 4444 Richmond Ave. NA 144,041
Houston, TX 77027
Leigh & Associates 18552 MacArthur Blvd. NA 27,053
Irving, CA 92612
Locke Purnell Rain Harrell 2200 Ross Avenue, Ste. 2200 NA 40,675
Dallas, TX 75201
Charlene Marsh 3 Coray Circle NA 143,551
Little Rock, AR 72211
McDermott, Will & Emery 50 Rockefeller Plaza NA 93,479
New York, NY 10020-1605
21D of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
Mayer Brown & Platt 190 South Lasalle Street NA 361,472
Chicago, IL 60604
Antonia Meneses 13605 S. Divine Hwy NA 47,540
Ste 136-508
Miami, FL 33176
Morris, Nichols, Arsht & Tunnell P. O. Box 1347 NA 54,703
Wilmington, DE 19899-1347
Morrison & Foerster LLP P.O. Box 60000 NA 56,007
San Francisco, CA 94160
Nuricon Union (PTE) Ltd. 4th Floor NA 68,641
Mubarak M
Karachi
P&E Search c/o Recruiters Network NA 78,250
Group, Inc.
12750 Merit Drive, Suite 1430
Park Central VII. LB 56
Dallas, TX 75251
Carlo Pellegatta CP Marketing NA 80,653
Via A Dello Pergola II
Milan, Italy 20159
Penpower, Inc. Power Plant Startup NA 229,378
Brandon (Tampa)FL 33511-4954
Peregrine Capital Limited The Hong Kong & Shan NA 155,705
Hong Kong
PHH Relocation PHH Centre NA 116,589
Whitehill Way, Swindo SNS 6PE
Phelps Dunbar 400 Poydras Street NA 632,475
Texaco Center
New Orleans, LA 70130
Pillsbury Madison & Sutro P.O. Box 60000 NA 155,967
San Francisco, CA 94160
Pinheiro Neto Advogados Bank of Boston Inter NA 83,831
New York, NY 2517533
21E of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
Power Generations Inc. 179 Wolf Willow Cres NA 30,000
Edmonton , Albert T5T IT3
Raytheon Engineers & Construct P. O. Box 8500- S 5450 NA 73,373
Philadelphia, PA 19178
RHR International P.O. Box 95122 NA 70,519
Chicago, IL 60694
Reid & Priest 40 West 57th Street NA 290,012
New York, NY 10019
Repovich Reynolds Group 709 E. Colorado Blvd. NA 34,260
Pasadena, CA 91101
Resolve Consulting 11 Moss Hill Lane NA 36,250
Laguna Hills, CA 92653-6054
Reuters American, Inc. Dept. LA 21054 NA 35,687
Pasadena, CA 91185-1054
SSI, Inc. dba Spencer Stuart NA 91,721
P.O. Box 98991
Chicago, IL 60693
Sade Ingenieria SADE I. Y.C.S.A. NA 50,828
Buenos Aires, Argentina 36016135
Sidley & Austin One First National Plaza NA 514,968
Chicago, IL 60603
Simplified Solutions, Inc. 6129 Brook Drive NA 54,540
Falls Church, VA 22044
Sims, Marcanthony 40 Roselle Street NA 50,034
Mineola, NY 11501
Sims, Roy 2 Shore Point Rd. NA 34,097
NLR, AR 72116
Skadden, Arps, Slate, Meagher 919 Third Ave NA 563,305
New York, NY 10022
21F of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Outside Services Employed - Account 923
Relationship
"A"- Associate
"NA" - Non
From Whom Purchased Address Associate Amount
Skidmore, Steven M. 1083 Vine Street NA 121,200
Healdsburg, CA 95448-4830
Skills & Solutions Limited 3 Arden Close NA 46,888
Bovingfon Herts HP3 OQS
Spencer Stuart & Associates P. O. Box 98991 NA 91,456
Chicago, IL 60693
Spencer Stuart (US), Inc. P. O. Box 98991 NA 49,958
Chicago, IL 60693
Stuart, Spencer P. O. Box 98991 NA 73,649
Chicago, IL 60693
Sterling Energy 26893 Calle Hermosa NA 76,053
Capistrano Beack, VA 92624
Swiatlo, David 4700 W. Ingraham Ter. NA 40,020
Coral Gables, FL 33133
The China Power Group, LLC 40 Roselle Street NA 75,000
Mineola, NY 11501
Trans Energy Management 5555 San Felipe # 1750 NA 53,014
Houston, TX 77056
Trans Lux 110 Richards Avenue NA 48,863
Norwalk, CT 06854-1692
Walker, W. S. & Company Calcdonian House NA 27,932
P.O. Box 265
George Town, Grand Cayman,
Cayman Islands
White & Case - Turkey Ziay Ur Rahman Cadde NA 85,696
Ankara, Turkey
Winthrop, Stimson, Putnam One Battery Park Plaza NA 51,009
New York, NY 10004-1490
Zai*Net Software, Inc. 747 Third Ave NA 50,663
New York, NY 10017
Others (377) Various 1,078,650
-----------
Total $20,155,172
===========
21G of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Employee Pensions and Benefits - Account 926
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
Moving Expense Reimbursement $665,577
--------
TOTAL $665,577
========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
General Advertising Expenses - Account 930.1
Instructions:
Provide a listing of the amount included in "General Advertising Expenses,"
classifying the items according to the nature of the advertising and as
defined in the account definition. If a particular class includes an amount
in excess of $3,000 applicable to a single payee, show separately the name
of the payee and the aggregate amount applicable thereto.
Description Name of Payee Amount
Entergy Power Woodlands Country Club $ 3,531
Marketing Bernard Hodes Advertising 8,161
advertisement Brian's Ads 7,672
Other 12,479
London Electricity Gavin Anderson 16,313
Advertising
--------
TOTAL $ 48,156
========
22 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Miscellaneous General Expenses - Account 930.2
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
Director Fees & Expenses (includes ($14,000) prior year
correction) $ (5,973)
Office Expenses 32,804
Employee Termination Settlement 58,000
Advertising 38,597
Dues 11,599
Misc. Employee Expenses 36,305
Training & Recruiting 12,273
Miscellaneous 14,600
--------
TOTAL $198,205
========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Rents - Account 931
Instructions.
Provide a listing of the amount included in "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 $3,668,358
Office Equipment 100,630
----------
TOTAL $3,768,988
==========
23 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Taxes Other Than Income Taxes - Account 408
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
Franchise $107,166
Social Security Tax (Argentina) 3,710
Payroll Tax Loading 156,589
--------
TOTAL $267,465
========
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Donations - Account 426.1
Instructions:
Provide a listing of the amount included in "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 Amount
National Rowling Foundation Sponsorship of rowing team $5,000
Other (5) 3,250
------
TOTAL $8,250
======
24 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Other Deductions - Account 426.5
Instructions:
Provide a listing of the amount included in "Other Deductions," classifying
such expenses according to their nature.
Description Name of Payee Amount
Club Memberships and Dues Various $16,375
-------
TOTAL $16,375
=======
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
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 15A - 15E.
25 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
For the Year Ended December 31, 1997
Schedule XIX - Annual Report of Entergy Integrated Solutions, Inc.
UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
In the Matter of .
.
Entergy Corporation .
Entergy Enterprises, Inc. .
Entergy Integrated Solutions, Inc. .
(formerly Entergy Systems and Service, Inc. .
and prior thereto Systems and .
Service U.S.A., Inc.) . CERTIFICATE PURSUANT
. TO RULE 24
File No. 70-7947 .
File No. 70-8509 .
.
(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, modified by the application(s)-declaration(s) in the above
referenced files and the related orders dated December 28, 1992 and
July 27, 1995 (collectively, the "Orders"), this is to certify that the
following paragraphs report transactions carried out by Entergy
Integrated Solutions, Inc. (EIS)<FN1> during the three (3) month and twelve
(12) month periods ended December 31, 1997 pursuant to the
authorization of the SEC and provide such other information as is
required to be reported in accordance with the provisions of the
Orders.
I. Summary of Total Assets and Revenues of EIS By Type of Activity
Energy Management & Funding of other
DSM Consulting Contractors
Total Assets * $ 116,470,308.88
Total Revenues $ 74,237,697.00
* Excludes assets that are not appropriately allocated to any specific
business activity, but which support EIS's general business operations.
II. Summary of Total Assets and Revenues of EIS By Geographic Region
U.S. (excluding World
Base Region Base Region) (excluding U.S.)
Total Assets ** $27,318,011.28 $48,397,845.34
Total Revenues $25,443,497.00 $48,794,200.00
** Excludes assets that are not dedicated to EIS's business activities
in any specific geographic region.
III. Financial Statements
EIS's unaudited Balance Sheets, as of December 31, 1997 and as of
the reporting date, respectively, and Income Statements for the twelve
month period ending December 31, 1997, and for the calendar year to
date, respectively, are attached hereto.
IV. Information Reported on an Annual Basis
A. Statement of Estimated Kilowatts Saved (12 months ending
12/31/96)
Base Region Outside Base Region
Energy Management Services 3,836.52 11,373.69
DSM Services (Utility Sponsor)
B. Terminated and/or Canceled Contracts
<TABLE>
<CAPTION>
Contract Amount of Loss Reason for
Customer Value to Entergy Termination/Cancellation
<S> <C> <C> <C>
Munro Petroleum & Terminal Corp $ 29,890 $ 29,890 Irreconcilable differences
The Sporting Club 17,373 17,373 relating to the system's
Lewis Corporation 13,342 13,342 energy efficiency level.
Misc customers (< $10,000) 672,551 245,259 "
</TABLE>
C. Bad Debt
Customer Amount of Bad Debt Expense or Loss
Munro Petroleum & Terminal Corp $ 29,890
The Sporting Club 14,146
Lewis Corporation 13,341
Sanjit B. Shad 11,088
Miscellaneous Customers (< $10,000) 284,902
<TABLE>
<CAPTION>
D. Schedule of Projects Over $100,000
EMS or DSM Investment Estimate Future
Customer Services Total Project Value
<S> <C> <C> <C>
FLEMING COMPANIES, INC. EMS 766,002 10,554,534
SEARS, ROEBUCK & COMPANY EMS 1,241,476 2,395,899
RYERSON-TULL, INC. EMS 344,913 1,566,788
FLYING J, INC. EMS 398,615 1,380,083
FLEMING COMPANIES, INC. EMS 97,171 739,061
FLEMING COMPANIES, INC. EMS 53,046 856,509
BILL'S DOLLAR STORES, INC. EMS 155,805 680,009
ABB POWER T & D COMPANY, INC. EMS 190,535 666,392
SPECTRUM STORES, INC EMS 69,284 772,286
GENERAL GROWTH MANAGEMENT, INC. EMS 206,196 506,917
RYERSON TULL, INC. DBA RYERSON COIL EMS 94,586 454,892
BERGLUND CHEVROLET, INC. EMS 53,430 466,965
PEPSI-COLA PHILADELPHIA EMS 53,268 462,827
STEVE MOORE CHEVROLET, INC. EMS 29,637 448,257
MELVIN L. DAVIS OIL COMPANY, INC. EMS 46,240 438,423
FLEMING COMPANIES, INC. EMS 6,467 340,119
ENGLEFIELD, INC. EMS 88,726 322,161
KOONS PONTIAC, OLDS, GMC TRUCK, INC. EMS 51,889 395,165
HOWMET CORP. EMS 91,454 300,496
CHARLES BARKER AUTOMOTIVE, INC EMS 47,259 376,406
ST. CLAIR DIE CASTING COMPANY EMS 90,665 280,200
D & S FOOD VENTURE, INC. EMS 40,188 333,931
HILL CITY OIL COMPANY, INC. EMS 34,575 333,919
ST. ANDREWS PARISH PARKS/P.G. COMM. EMS 43,722 332,055
RAHE, INC. EMS 32,085 331,187
SAWMILL ATHLETIC CLUB, INC. EMS 33,479 329,212
THE RANDY CO. D/B/A COURT ONE ATHLETIC EMS 23,198 322,586
HOFFMAN BEVERAGE COMPANY INC EMS 35,173 297,101
AMOCO DIRECT RETAIL OPERATIONS EMS 32,832 231,998
COLEMAN OIL CO., INC. EMS 56,284 229,779
ELLERSLIE CORPORATION EMS 43,330 219,780
CUSTOMER 1 ONE, INC. EMS 35,645 270,122
WALKER FORD COMPANY, INC. EMS 35,330 266,226
LINK-BELT CONSTRUCTION COMPANY EMS 27,107 264,747
E-Z MART STORES, INC. EMS 45,646 194,393
DIAMOND CLUBS GROUP, LLC. EMS 19,918 243,755
FAULKNER OLDSMOBILE, INC. EMS 30,216 235,508
BILL'S DOLLAR STORES, INC. EMS 26,325 233,030
LAURINBURG KFC TAKE HOME, INC. EMS 20,477 231,791
CHECK PRINTERS, INC. TEST EMS 51,149 180,736
FAULKNER CHEVROLET, INC EMS 28,163 225,492
COASTAL MART, INC. EMS 39,094 176,881
PATTERSON OLDSMOBILE-GMC-TOYOTA, INC EMS 29,472 220,657
SIERRA VEHICLES, INC. EMS 48,554 174,271
ROGER BEASLY IMPORTS, INC. EMS 19,163 217,517
SPREEN SATURN, INC. EMS 23,008 213,348
J.R. HOLCOMB & COMPANY EMS 16,919 206,943
B AND T FOODS, INC. EMS 21,363 206,271
J. A. MILES OIL COMPANY, INC. EMS 23,889 204,806
RESEDA DODGE SALES, INC. EMS 26,772 204,752
MAYFAIR WINDOW & DOOR COMPANY LP EMS 13,694 197,234
RYERSON-TULL, INC. (HOUSTON FACILITY) EMS 39,857 155,278
TRINITY MARINE INDUSTRIES EMS 38,485 155,120
TRI-CO OIL COMPANY, INC. EMS 22,943 192,635
BOWDITCH FORD, INC. EMS 49,847 146,390
O'CONNOR OIL CORPORATION EMS 16,943 183,310
AVERITT EXPRESS, INC. EMS 45,182 145,051
3166, INC. EMS 53,882 144,614
BILL STEBER CHEVROLET, INC. EMS 15,134 181,217
LAMARQUE FORD, INC. EMS 32,802 144,403
COMBINED ENTERTAINMENT, INC. EMS 16,764 180,891
GARY W. WHEATLEY DBA FOODLAND FRESH EMS 26,540 180,879
DREYER & REINBOLD, INC EMS 22,120 180,481
JIM MILES, INC. EMS 17,523 179,366
DURHAM AUTOPLEX, INC. EMS 25,585 179,346
FLOWERS BAKING CO. OF JACKSONVILLE, INC. EMS 48,044 142,647
AYERS OIL CO., INC. EMS 15,424 178,262
STEINHAGEN OIL CO., INC. EMS 15,579 141,831
BOBBY JONES FORD, INC. EMS 42,380 141,090
TRINITY MARINE PORT ALLEN EMS 28,837 140,548
GENE EVANS FORD, INC. EMS 36,245 139,647
FAULKNER HARRISBURG INC. EMS 16,368 174,749
LOXCREEN COMPANY, INC. EMS 21,502 174,328
J.R. HOLCOMB & COMPANY EMS 29,061 138,753
TEXAS MOTORS, INC. EMS 39,893 138,528
BEST OIL, INC. EMS 33,209 137,971
MAC'S "76", INC. EMS 16,938 171,744
DURHAM DEVELOPMENT CORPORATION EMS 21,683 171,661
JOHNS FORD, INC. EMS 38,771 136,774
BOX USA GROUP, INC. EMS 40,074 135,295
KOON'S OF WESTMINSTER, INC. EMS 18,244 169,041
BELLMA, INC. EMS 42,606 134,294
THE RACQUET CLUB OF COLUMBUS EMS 18,701 168,247
MALL ASSOCIATES LLC EMS 37,185 133,251
KOONS BUICK PONTIAC GMC, INC EMS 47,229 132,756
J. KOONS PONTIAC GMC TRUCK, INC. EMS 44,197 129,982
MINTO BROTHERS, INC. EMS 16,950 162,287
GERALD JONES VOLKSWAGEN, INC. EMS 43,054 129,265
M & G MARKETS, INC. EMS 20,755 160,929
GCJ ENTERPRISES, INC. EMS 17,568 160,574
CORMIER CHEVROLET COMPANY EMS 41,128 125,823
SUN STATE FORD, INC. EMS 38,270 125,332
SPRING HILL FORD, INC. EMS 20,290 157,181
HARVEY CHEVROLET CORP. EMS 17,268 157,159
COURTESY CHEVROLET MOTORS EMS 45,763 124,860
THE LOXCREEN COMPANY, INC. EMS 16,050 156,465
KTC/QUAIL, INC. EMS 35,290 124,283
AMERICAN SERVICE CENTER, LP EMS 45,956 123,438
</TABLE>
_______________________________
<FN1> By amendment to its Certificate of Incorporation, Entergy Systems and
Service, Inc. changed its name to "Entergy Integrated Solutions, Inc.",
effective May 7, 1996
<PAGE>
<TABLE>
<CAPTION>
Entergy Integrated Solutions Inc.
Statement of Operations
Quarter and Year-To-Date Ended December 31, 1997
(Unaudited)
Current Quarter Year To Date
<S> <C> <C>
Revenue $ 29,066,453.00 74,237,697.00
Operating Expense 19,238,138.00 49,539,863.00
---------------- --------------
Gross Margin 9,828,315.00 24,697,834.00
Selling Expense 3,679,940.00 15,280,906.00
Marketing Expense 70,283.00 680,971.00
Administrative & General Expense 3,628,679.00 15,510,064.00
Other Expense/Income 22,213,100.00 29,856,709.00
---------------- --------------
Net Operating Profit (Loss) Before Taxes (19,763,687.00) (36,630,816.00)
Income taxes (6,503,499.00) (12,553,820.00)
---------------- --------------
Net Profit (Loss) $ (13,260,188.00) (24,076,996.00)
================ ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Entergy Integrated Solutions Inc.
Balance Sheet
December 31, 1997
(Unaudited)
ASSETS
<S> <C>
Current assets:
Cash and cash equivalents $ 3,824,013.24
Accounts receivable 4,114,486.45
Other current assets 6,552,196.40
---------------
Total current assets 14,490,696.09
---------------
Investments:
HES service contracts, net 1,794,545.48
---------------
Total investments 1,794,545.48
---------------
Fixed Assets:
Furniture and equipment, net 7,860,437.96
Equipment inventory held for installation 11,146,284.76
Installations in process 10,298,005.53
Installed equipment 59,508,819.16
---------------
Total fixed assets 88,813,547.41
---------------
Deferred Debits:
Miscellaneous deferred debits 1,071,854.99
Deferred income taxes 9,437,671.00
Other assets, Net 861,993.91
---------------
Total deferred debits 11,371,519.90
---------------
TOTAL ASSETS $116,470,308.88
===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Entergy Integrated Solutions Inc.
Balance Sheet
December 31, 1997
(Unaudited)
LIABILITIES AND CAPITAL
<S> <C>
Current & accrued liabilities:
Accounts payable $ 1,659,666.48
Accrued liabilities 7,006,937.40
Current portion of capital lease obligations 92,019.66
Current Maturities-Other Long-term liabilities 1,483,960.25
---------------
Total current & accrued liabilities 10,242,583.79
---------------
Long-term liabilities:
Long-term liabilities 3,293,068.58
---------------
Total long-term liabilities 3,293,068.58
---------------
Deferred Credits:
Service contract revenue 49,392,282.88
---------------
Total deferred credits 49,392,282.88
---------------
Capital:
Common stock, no par value, 50,000 shares authorized,
13,500 shares issued and outstanding 13,500,000.00
Paid in capital 150,000,000.00
Accumulated deficit (109,957,626.37)
---------------
Total capital 53,542,373.63
---------------
Total liabilities and capital $116,470,308.88
===============
</TABLE>
<PAGE>
Entergy Integrated Solutions Inc.
Statement of Operations
Quarter and Year-To-Date Ended December 31, 1997
(Unaudited)
Assets by Region:
Inside Base Region $27,318,011.28
Outside Base Region 48,397,845.34
--------------
Total Assets $75,715,856.62
==============
Inside Base Region $25,443,497.00
Outside Base Region 48,794,200.00
--------------
Total Revenues $74,237,697.00
==============
<PAGE>
Entergy Integrated Solutions Inc.
Statement of Operations
Quarter and Year-To-Date Ended December 31, 1997
(Unaudited)
Assets by Activity:
Energy Management & DSM Services $116,470,308.88
===============
Revenue by Activity:
Energy Management & DSM Services $74,237,697.00
==============
<PAGE>
<TABLE>
<CAPTION>
Entergy Integrated Solutions Inc.
Statement of Operations
Quarter and Year-To-Date Ended March 31, 1998
(Unaudited)
Current Quarter Year To Date
<S> <C> <C>
Revenue $19,263,958.00 19,263,958.00
Operating Expense 13,969,533.00 13,969,533.00
-------------- --------------
Gross Margin 5,294,425.00 5,294,425.00
Selling Expense 3,565,608.00 3,565,608.00
Marketing Expense 116,035.00 116,035.00
Administrative & General Expense 2,880,790.00 2,880,790.00
Other Expense/Income 1,518,391.00 1,518,391.00
-------------- --------------
Net Operating Profit (Loss) Before Taxes (2,786,399.00) (2,786,399.00)
Income taxes (980,715.00) (980,715.00)
-------------- --------------
Net Profit (Loss) $(1,805,684.00) (1,805,684.00)
============== ==============
</TABLE>
<PAGE>
Entergy Integrated Solutions Inc.
Balance Sheet
March 31, 1998
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 820,476.07
Accounts receivable 2,870,739.36
Other current assets 7,452,518.19
---------------
Total current assets 11,143,733.62
---------------
Fixed Assets:
Furniture and equipment, net 7,600,976.16
Equipment inventory held for installation 12,574,057.97
Installations in process 12,645,564.85
Installed equipment 53,189,276.07
---------------
Total fixed assets 86,009,875.05
---------------
Deferred Debits:
Miscellaneous deferred debits 1,168,539.03
Deferred income taxes 9,437,671.00
Other assets, Net 1,077,258.43
---------------
Total deferred debits 11,683,468.46
---------------
TOTAL ASSETS $108,837,077.13
===============
<PAGE>
Entergy Integrated Solutions Inc.
Balance Sheet
March 31, 1998
(Unaudited)
LIABILITIES AND CAPITAL
Current & accrued liabilities:
Accounts payable $ 1,425,018.58
Accrued liabilities 7,772,574.92
Current portion of capital lease obligations 94,774.88
Current Maturities-Other Long-term liabilities 982,015.68
---------------
Total current & accrued liabilities 10,274,384.06
---------------
Long-term liabilities:
Long-term liabilities 1,465,952.84
---------------
Total long-term liabilities 1,465,952.84
---------------
Deferred Credits:
Service contract revenue 45,360,050.92
---------------
Total deferred credits 45,360,050.92
---------------
Capital:
Common stock, no par value, 50,000 shares authorized,
13,500 shares issued and outstanding 13,500,000.00
Paid in capital 150,000,000.00
Accumulated deficit (111,763,310.69)
---------------
Total capital 51,736,689.31
---------------
Total liabilities and capital $108,837,077.13
===============
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
Organization Chart
See page 27
Methods of Allocation
Indirect costs are allocated monthly to each project on the direct dollars
charged to the project.
Annual Statement of Compensation for Use of Capital Billed
- Not applicable -
Disclaimer of Subsidization
Enterprises represents that no Domestic Associate Company has subsidized the
operations of Central Costanera, S.A. or Edesure, S. A. and, further, that
the transfer of any personnel from, and the rendering of services by the
Domestic Associate Companies in connection with these companies have not
adversely affected the services provided by such companies to their respective
customers.
26 of 28 pages
<PAGE>
ENTERGY ENTERPRISES, INC.
Organization Chart
April 1998
DIRECTORS
William D. Bandt
Jerry D. Jackson
Edwin Lupberger
Edwin Lupberger Chairman of the Board and President
Charles J. Brown, III Group President, Project Development EPG
William D. Bandt Executive Vice President-Retail Service
Richard J. Landy Senior Vice President
Shahid J. Malik Senior Vice President
Naomi Nakagama Senior Vice President-Finance and Treasurer
Michael G. Thompson Senior Vice President-Law and Secretary
David W. Carter Vice President
Robert J. Cushman Vice President-Finance
Lawrence S. Folks Vice President
Robert A. Keegan Vice President
Steven R. Kirkeby Vice President-Marketing
John J. Ludwig Vice President-Operations
James E. Moss Vice President-Business Development
Laurence M. Hamric Assistant Secretary
Frederick F. Nugent Assistant Secretary
Stephen T. Refsell Assistant Secretary
27 of 28 pages
<PAGE>
ANNUAL REPORT TO THE SEC OF ENTERGY ENTERPRISES, INC. (UNCONSOLIDATED)
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 Enterprises, Inc.
(Name of Reporting Company)
By: /s/ Robert J. Cushman
(Signature of Signing Officer)
Robert J. Cushman
Vice President - Finance
(Print Name and Title of Signing Officer)
Date: May 1, 1998
28 of 28 pages
<TABLE> <S> <C>
<ARTICLE> OPUR2
<CIK> 0000833411
<NAME> ENTERGY ENTERPRISES, INC.
<SUBSIDIARY>
<NUMBER> 024
<NAME> ENTERGY ENTERPRISES, INC.
<S> <C> <C>
<PERIOD-TYPE> YEAR YEAR
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996
<PERIOD-END> DEC-31-1997 DEC-31-1996
<BOOK-VALUE> PER-BOOK PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 6,838,817 3,638,705
<TOTAL-INVESTMENTS> 59,883,678 80,531,881
<TOTAL-CURRENT-ASSETS> 24,526,383 28,596,684
<TOTAL-DEFERRED-DEBITS> 4,283,291 8,094,174
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 95,532,169 120,861,444
<TOTAL-PROPRIETARY-CAPITAL> 68,478,432 98,448,264
<TOTAL-LONG-TERM-DEBT> 4,500,000 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0 0
<OTHER-CURR-AND-ACCRUED-LIAB> 21,313,118 16,363,073
<TOTAL-DEFERRED-CREDITS> 1,240,619 6,050,107
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<TOT-LIABIL-AND-PROPRIET-CAP> 95,532,169 120,861,444
<SERVICES-ASSOCIATE-COMPANIES> 48,358,384 15,879,036
<SERVICES-NON-ASSOCIATE-COMP> 59,562 137,673
<MISC-INCOME-OR-LOSS> (380,904) 0
<TOTAL-INCOME> 25,490,415 (14,290,684)
<SALARIES-AND-WAGES> 25,216,073 10,574,432
<EMPLOYEE-PENSION-AND-BENEFIT> 665,577 684,522
<OTHER-EXPENSES> 32,578,597 12,471,794
<TOTAL-EXPENSES> 58,460,247 23,730,748
<NET-INCOME> (32,969,832) (38,021,432)
<TOTAL-EXPENSES-DIRECT-COST> 35,705,707 23,830,754
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<TOT-EXP-DIRECT-AND-INDIRECT> 48,373,032 36,754,607
<PERSONNEL-END-OF-YEAR> 231 100
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