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 OPERATIONS, INC.
_________________________________________________________________
(Exact Name of Reporting Company)
A Subsidiary Service Company
____________________________________
("Mutual " or "Subsidiary")
Date of Incorporation June 6, 1990. If not Incorporated, Date
of Organization _________________ State or Sovereign Power under
which Incorporated or Organized Delaware Location of Principal
Offices of Reporting Company 1340 Echelon Parkway, Jackson, Mississippi
Name, title and address of officer to whom correspondence concerning this
report should be addressed: Mr. Louis E. Buck, Jr. VP, Chief Accounting
Officer P.O. Box 61000, New Orleans, La. 70161
Name of Principal Holding Company Whose Subsidiaries are served
by Reporting Company:
Entergy Corporation
<PAGE>
2 OF 28 PAGES (BLANK)
<PAGE>
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing
Rule 94 provides that on or before the first day of May in
each calendar year, each mutual service company and each
subsidiary service company as to which the Commission shall
have made a favorable finding pursuant to Rule 88, and
every service company whose application for approval or
declaration pursuant to Rule 88 is pending shall file with
the Commission an annual report on Form U-13-60 and in
accordance with the Instructions for that form.
2. Number of Copies
Each annual report shall be filed in duplicate. The company
should prepare and retain at least one extra copy for
itself in case correspondence with reference to the report
becomes necessary.
3. Period Covered by Report
The first report filed by any company shall cover the
period from the date the Uniform System of Accounts was
required to be made effective as to that company under
Rules 82 and 93 to the end of that calendar year.
Subsequent reports should cover a calendar year.
4. Report Format
Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form
is inadequate, additional sheets may be inserted of the
same size as a sheet of the form or folded to each size.
5. Money Amounts Displayed
All money amounts required to be shown in financial
statements may be expressed in whole dollars, in thousands
of dollars or in hundred thousands of dollars, as
appropriate and subject to provisions of Regulation S-X
(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, SS210.3-01(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
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Listing Of Schedules and Analysis of Accounts
Schedule or Page
Description of Schedules and Accounts Account Number Number
Comparative Balance Sheets Schedule I 5-6
Service Company Property Schedule II 7
Accumulated Provision for Depreciation and
Amortization of Service Company Property Schedule III 8
Investments Schedule IV 9
Accounts Receivable from Associate Companies Schedule V 9
Fuel Stock Expenses Undistributed Schedule VI 10
Stores Expense Undistributed Schedule VII 10
Miscellaneous Current and Accrued Assets Schedule VIII 11
Miscellaneous Deferred Debits Schedule IX 11
Research, Development, or Demonstration
Expenditures Schedule X 11
Proprietary Capital Schedule XI 12
Long-Term Debt Schedule XII 13
Current and Accrued Liabilities Schedule XIII 14
Notes to Financial Statements Schedule XIV 14
Comparative Income Statements Schedule XV 15
Analysis of Billing - Associate Companies Account 457 16
Analysis of Billing - Nonassociate Companies Account 458 17
Analysis of Charges for Service - Associate
and Nonassociate Companies Schedule XVI 18
Schedule of Expense Distribution by
Department or Service Function Schedule XVII 19-20
Departmental Analysis of Salaries Various Accounts 21
Outside Services Employed Various Accounts 21
Employee Pensions and Benefits Various Accounts 22
General Advertising Expenses Various Accounts 22
Miscellaneous General Expenses Various Accounts 23
Rents Various Accounts 23
Taxes Other Than Income Taxes Various Accounts 24
Donations Various Accounts 24
Other Deductions Various Accounts 25
Notes to Statement of Income Schedule XVIII 25
Page
Description of Reports or Statements Number
Organization Chart 26
Methods of Allocation 26
Annual Statement of Compensation for Use of Capital Billed 26
4 OF 28 Pages
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
Schedule I - Comparative Balance Sheets
<TABLE>
<CAPTION>
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,
1997 1996
SERVICE COMPANY PROPERTY
<S> <C> <C> <C>
101 Service company property (Schedule II) $11,254,383 $11,254,383
107 Construction work in progress (Schedule II) 636,230 576,495
----------- -----------
Total Property 11,890,613 11,830,878
----------- -----------
108 Less accumulated provision for depreciation and amortization of service
company property (Schedule III) 8,460,608 7,025,297
----------- -----------
Net Service Company Property 3,430,005 4,805,581
----------- -----------
INVESTMENTS
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
----------- -----------
Total Investments - -
----------- -----------
CURRENT AND ACCRUED ASSETS
131 Cash 2,901 -
134 Special deposits - -
135 Working funds 5,517 7,138
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable 193,570 182,882
143 Accounts receivable - 721,197
144 Accumulated provision for uncollectible accounts - -
145 Notes receivable from associate companies 22,000 -
146 Accounts receivable from associate companies (Schedule V) 46,432,407 35,283,720
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments - 4,488
174 Miscellaneous current and accrued assets (Schedule VIII) 142,381 448,665
----------- -----------
Total Current and Accrued Assets 46,798,776 36,648,090
----------- -----------
DEFERRED DEBITS
181 Unamortized debt expense 2,888 -
184 Clearing accounts 7,981 -
186 Miscellaneous deferred debits (Schedule IX) 1,001,341 1,870,442
188 Research, development, or demonstration expenditures (Schedule X) - -
190 Accumulated deferred income taxes 721,829 856,559
----------- -----------
Total Deferred Debits 1,734,039 2,727,001
----------- -----------
TOTAL ASSETS AND OTHER DEBITS $51,962,820 $44,180,672
=========== ===========
PAGE 5 OF 28 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
Schedule I - Comparative Balance Sheets
<TABLE>
<CAPTION>
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31,
1997 1996
PROPRIETARY CAPITAL
<S> <C> <C> <C>
201 Common stock issued (Schedule XI) $5,000 $5,000
211 Miscellaneous paid-in-capital (Schedule XI) 995,000 995,000
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
----------- -----------
Total Proprietary Capital 1,000,000 1,000,000
----------- -----------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
----------- -----------
Total Long-term Debt - -
----------- -----------
OTHER NON-CURRENT LIABILITIES
228 Accumulated provision for pensions & benefits and injuries & damages (182,824) 221,391
----------- -----------
Total Other Non-current Liabilities (182,824) 221,391
----------- -----------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable - -
232 Accounts payable 10,443,709 16,531,875
233 Notes payable to associate companies (Schedule XIII) 14,951,887 14,907,757
234 Accounts payable to associate companies (Schedule XIII) 24,134,183 8,934,063
236 Taxes accrued 305,564 1,253,685
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 2,082 -
242 Miscellaneous current and accrued liabilities (Schedule XIII) 37,426 78,249
----------- -----------
Total Current and Accrued Liabilities 49,874,851 41,705,629
----------- -----------
DEFERRED CREDITS
253 Other deferred credits 250,000 1,253,652
255 Accumulated deferred investment tax credits - -
----------- -----------
Total Deferred Credits 250,000 1,253,652
----------- -----------
282 Accumulated deferred income taxes - other property - -
283 Accumulated deferred income taxes - other 1,020,793 -
----------- -----------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $51,962,820 $44,180,672
=========== ===========
PAGE 6 OF 28 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Schedule II - Service Company Property
<TABLE>
<CAPTION>
Balance at Retirements Other Balance at
Beginning Additions or Changes Close of
Description of Year Sales (1) Year
Service Company Property
Account
<S> <C> <C> <C> <C> <C> <C>
301 Organization $ - $ - $ - $ - $ -
303 Miscellaneous Intangible Plant 1,271,722 - - - 1,271,722
304 Land and Land Rights - - - - -
305 Structures and Improvements - - - - -
306 Leasehold Improvements 3,239,633 - - - 3,239,633
307 Equipment (2) 3,956,680 - - - 3,956,680
308 Office Furniture and Equipment 2,290,632 - - - 2,290,632
309 Automobiles, Other Vehicles
and Related Garage Equipment 5,767 - - - 5,767
310 Aircraft and Airport Equipment 489,949 - - - 489,949
311 Other Service Company Property (3) - - - - -
--------------------------------------------------------
SUBTOTAL 11,254,383 - - - 11,254,383
--------------------------------------------------------
107 Construction Work in Progress (4) 576,495 59,735 - - 636,230
--------------------------------------------------------
TOTAL $11,830,878 $59,735 $ - $ - $11,890,613
========================================================
</TABLE>
(1) Provide an explanation of those changes considered material:
N/A
(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
307.02 Communications and Dispatch $ - $1,597,340
307.03 Data Processing - 2,359,340
---------- ----------
TOTAL $ - $3,956,680
========== ==========
(3) Description of other service company property:
N/A
(4) Description of construction work in progress:
Purchase of office equipment and leasehold improvements to
corporate offices.
7 OF 28 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Schedule III - Accumulated Provision for Depreciation
and Amortization of Service Company Property
<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 $ - $ - $ - $ - $ -
303 Miscellaneous Intangible Plant 249,379 185,517 - 20,890 455,786
304 Land and Land Rights - - - - -
305 Structures and Improvements - - - - -
306 Leasehold Improvements 1,511,851 232,722 - 19,394 1,763,967
307 Equipment 2,763,042 909,320 - 3,672,362
308 Office Furniture and Equipment 2,000,485 67,468 - - 2,067,953
309 Automobiles, Other Vehicles
and Related Garage Equipment 5,959 - - - 5,959
310 Aircraft and Airport Equipment 494,581 - - - 494,581
311 Other Service Company Property - - - - -
-----------------------------------------------------------
TOTAL $7,025,297 $1,395,027 $ - $40,284 $8,460,608
===========================================================
(1) Provide an explanation of those changes considered material:
N/A
</TABLE>
8 OF 28 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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 $ - $ -
Account 124 - Other Investments - -
Account 136 - Temporary Cash Investments - -
--------- ----------
TOTAL $ - $ -
========= ==========
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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 Year Close of Year
Account 146 - Accounts Receivable from
Associate Companies
Entergy Arkansas, Inc. $5,428,556 $5,760,336
System Energy Resources, Inc. 15,053,214 24,653,914
Entergy Louisiana, Inc. 985,364 2,919,678
Entergy Services, Inc. (295,999) (460,601)
Entergy Corporation 789,955 -
Entergy Gulf States, Inc. 13,322,630 13,559,080
----------- -----------
TOTAL $35,283,720 $46,432,407
=========== ===========
Total
Analysis of Convenience or Accommodation Payments
Payments: $ -
---------
TOTAL PAYMENTS $ -
=========
9 OF 28 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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 $ - $ - $ -
Undistributed
-------------------------------------
TOTAL $ - $ - $ -
=====================================
Summary:
N/A
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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 $ - $ - $ -
-----------------------------------
TOTAL $ - $ - $ -
===================================
10 OF 28 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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
Unbilled Jobbing Orders $448,205 $48,249
Other 460 94,132
-------- --------
TOTAL $448,665 $142,381
======== ========
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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
ARM Vouchers $172,451 $172,451
Long Term Incentive Plan 1,786,753 909,000
Other (88,762) (80,110)
---------- ----------
TOTAL $1,870,442 $1,001,341
========== ==========
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Schedule X - Research, Development, or Demonstration Expenditures
Instructions.
Provide a description of each material research,
development, or demonstration project which incurred costs
by the service corporation during the year.
Balance at Balance at
Description Beginning Close of
of Year Year
Account 188 - Research, Development, or $ - $ -
Demonstration Expenditures
-------- --------
TOTAL $ - $ -
======== ========
11 OF 28 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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>
Account 201-Common Stock Issued 1,000 $5.00 1,000 $5,000
</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 $995,000
Account 215 - Appropriated Retained Earnings -
--------
TOTAL $995,000
========
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 - $ - $ - $ - $ -
Unappropriated
Retained Earnings
------------------------------------------------
TOTAL $ - $ - $ - $ -
================================================
12 OF 28 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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 of Year
<S> <C> <C> <C> <C> <C>
Account 223 - Advances from
Associate
Companies: $ - $ - $ - $ - $ -
Account 224 - Other Long-Term
Debt: - - - - -
----------------------------------------------------
TOTAL $ - $ - $ - $ - $ -
====================================================
(1) Give an explanation of Deductions:
N/A
</TABLE>
13 OF 28 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
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 $14,907,757 $14,951,887
----------- -----------
TOTAL $14,907,757 $14,951,887
=========== ===========
Account 234 - Accounts Payable to Associate Companies
Entergy Arkansas, Inc. ($1,826,844) $2,779,933
System Energy Resources, Inc. 3,999,051 11,582,537
Entergy Louisiana, Inc. 4,697,483 7,175,451
Entergy Services, Inc. 3,260,817 2,065
Entergy Corporation 163,148 -
Money Pool Interest Payable 66,162 31,575
Entergy Gulf States, Inc. (1,425,754) 2,562,622
---------- -----------
TOTAL $8,934,063 $24,134,183
========== ===========
Account 242 - Miscellaneous Current and
Accrued Liabilities
Severance Payroll Accruals $42,647 $ -
Other - External Director Stock Plan 35,602 37,426
------- -------
TOTAL $78,249 $37,426
======= =======
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
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 14 ( 2 ) through 14 ( 6 )
14 OF 28 PAGES ( 1 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Schedule XIV - Notes To Financial Statements
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Entergy Operations, Inc. (Entergy Operations) is a nuclear
management service company wholly owned by Entergy Corporation.
Entergy Operations has been authorized to act as an agent in the
operations, but not ownership, of Arkansas Nuclear One Steam Electric
Generating Station Units 1 and 2 (ANO), River Bend Steam Electric
Generating Station (River Bend), Waterford Steam Electric Generating
Station Unit No. 3 (Waterford 3), and Grand Gulf Steam Electric
Generating Station Unit 1 (Grand Gulf 1), subject to oversight by
Entergy Arkansas, Inc., Entergy Gulf States, Inc., Entergy Louisiana,
Inc., and System Energy Resources, Inc. (collectively, the Companies),
respectively. The Companies and the Grand Gulf 1 co-owner retained
their ownership interests, associated capacity, and energy
entitlements and pay directly or reimburse Entergy Operations for the
costs associated with the operation and maintenance of these units.
Entergy Corporation entered into separate guarantee agreements with
the Companies whereby Entergy Corporation guaranteed the financial
ability of Entergy Operations to meet its various financial
obligations to the Companies under the operating agreements, as long
as the Companies continue to meet their payment obligations to Entergy
Operations under the applicable operating agreements.
System of Accounts
Entergy Operations maintains its accounts in accordance with the
Public Utility Holding Company Act of 1935, as administrated by the
Securities and Exchange Commission (SEC), and has adopted a system of
accounts consistent with the system prescribed by the Federal Energy
Regulatory Commission. Certain previously reported amounts have been
reclassified to conform to current classifications with no effect on
net income or shareholder's equity.
Use of Estimates in the Preparation of Financial Statements
The preparation of Entergy Operations' financial statements, in
conformity with generally accepted accounting principles, requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities, and the reported amounts of revenues and expenses.
Adjustments to the reported amounts of assets and liabilities may be
necessary in the future to the extent that future estimates or actual
results are different from the estimates used.
Depreciation and Amortization
Depreciation is computed on a straight-line basis at rates based
on the estimated service lives of the various classes of property,
which range from 5 to 15 years. Amortization of leasehold
improvements is computed on a straight-line basis over the lease
terms.
Income Taxes
Entergy Operations accounts for income taxes pursuant to
Statement of Financial Accounting Standards No. 109 "Accounting For
Income Taxes" (SFAS 109). This standard requires that deferred income
taxes be recorded for all temporary differences between the financial
statement and tax basis of assets and liabilities, and loss
carryforwards, and be based on enacted tax laws at tax rates that are
expected to be in effect when the temporary differences reverse.
Entergy Operations joins its parent and the other Entergy
Corporation subsidiaries in filing a consolidated Federal income tax
return. Income taxes (or benefits) are allocated to Entergy
Operations in proportion to its contribution to consolidated taxable
income. SEC regulations require that neither Entergy Corporation nor
its affiliates pay more income taxes than it would have paid had a
separate income tax return been filed. In addition, Entergy
Operations files a consolidated Arkansas and combined Mississippi
income tax return with certain other Entergy Corporation subsidiaries
and a separate income tax return for Louisiana.
Cash and Cash Equivalents
Entergy Operations considers all unrestricted highly
liquid debt instruments purchased with an original maturity of three
months or less to be cash equivalents.
Fair Value Disclosure
Entergy Operations considers the carrying amounts of financial
instruments classified as current assets and liabilities to be a
reasonable estimate of their fair value because of the short maturity
of these instruments.
NOTE 2. INCOME TAXES
Deferred income 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 (in thousands):
1997 1996
Deferred Tax Assets:
Excess capital loss carryforward $ 403 $ 403
Severance reserve - 16
Deferred compensation - 573
Operating reserves 18 39
Depreciation 72 -
Other - 2
------ -------
Total 493 1,033
------ -------
Deferred Tax Liabilities:
Depreciation - (176)
Deferred compensation (593) -
Injuries and damages reserve (164) -
Pension and benefits (OPEB) reserve (35) -
-------- ---------
Total (792) (176)
-------- ---------
Net Deferred Tax Assets/(Liabilities) $ (299) $ 857
======== =========
The benefit associated with these deferred tax assets has been or
will be utilized in the Entergy Corporation consolidated return. The
ultimate realization of these deferred tax assets for Entergy
Operations is dependent upon the allocation of the tax benefit from
the Entergy Corporation consolidated return.
Entergy Operations' effective income tax rate was 100% in
1997, 1996, and 1995, compared to the current federal statutory income
tax rate of 35%. The primary reason for the difference between the
effective and statutory income tax rates is that Entergy Operations
collects revenue adequate to fund its income tax expense. The income
tax expense for 1997, 1996, and 1995 resulted primarily from non-
deductible permanent items and state income taxes. The provision for
intercompany expense (benefit) in lieu of federal income taxes for the
years ended December 31, 1997, 1996, and 1995 consisted of the
following (in thousands):
1997 1996 1995
Current:
Federal $ (775) $ 372 $ 64
State (112) 1,214 (57)
-------------------------------------
Total (887) 1,586 7
-------------------------------------
Deferred:
Federal 1,005 18 223
State 151 2 34
-------------------------------------
Total 1,156 20 257
-------------------------------------
Total income tax expense $ 269 $ 1,606 $ 264
=====================================
NOTE 3. LINES OF CREDIT AND RELATED SHORT-TERM BORROWINGS
Entergy Operations has SEC authorization, through November 30,
2001, to effect short-term borrowings from Entergy Corporation in an
aggregate amount outstanding at any one time of up to $20 million
through a borrowing arrangement with interest rates based on a prime
rate. This borrowing arrangement was not used during 1997, 1996, or
1995.
Entergy Operations participates with certain other Entergy
Corporation subsidiaries in the System Money Pool (Money Pool), an
intra-system borrowing arrangement designed to reduce the dependence
on external short-term borrowings. As authorized by the SEC, the
borrowings by Entergy Operations from the Money Pool, combined with
any external borrowings, may not exceed the amount of the unused
portion of the borrowing arrangement discussed above.
The borrowings from the Money Pool and applicable interest rates
for 1997, 1996, and 1995 were as follows (dollars in thousands):
1997 1996 1995
Average borrowing $ 16,054 $ 10,208 $ 9,521
Maximum borrowing at month end $ 19,511 $ 14,908 $ 11,519
Average effective interest rate during the year 5.6% 5.4% 6.0%
Average effective interest rate at end of year 6.3% 5.9% 5.9%
NOTE 4. COMMITMENTS AND CONTINGENCIES
In connection with the Entergy Corporation-Entergy Gulf States,
Inc. merger (Merger), Entergy Gulf States Inc. filed two applications
with the Nuclear Regulatory Commission (NRC) in January 1993 to amend
the River Bend operating license. The applications sought the NRC's
consent to the Merger and to a change in the licensed operator of the
facility from Entergy Gulf States, Inc. to Entergy Operations. The NRC
Staff issued the two license amendments for River Bend, which were
effective immediately upon consummation of the Merger. On February
14, 1994, Cajun Electric Power Cooperative, Inc. (Cajun) filed with
the United States Court of Appeals for the District of Columbia
Circuit (D.C. Circuit) petitions for review of the two license
amendments for River Bend. In March 1995, the D.C. Circuit ordered
that the NRC order and license amendments be set aside, and remanded
the case to the NRC for further consideration. Subsequently, the NRC
affirmed its original findings and reissued the two license
amendments. Cajun and the Arkansas Cities and Cooperatives (Cities of
Benton, North Little Rock, Prescott and Osceola; the Conway
Corporation, the West Memphis Utilities Commission and the Farmer's
Electric Cooperative) filed petitions for review of those NRC orders
with the D.C. Circuit. On May 8, 1997, the D.C. Circuit granted
Cajun's motion to dismiss its appeal. Arkansas Cities and
Cooperatives' appeal has been briefed and remains pending. The two
license amendments are currently in full force and effect.
NOTE 5. OPERATING LEASES
Total rent expense for 1997, 1996, and 1995 was
approximately $15.5 million, $9.4 million, and $14.3 million,
respectively. As of December 31, 1997, Entergy Operations had non-
cancelable operating leases with future minimum rental commitments on
building space as follows (in thousands):
Minimum Lease
Payments
1998 $ 2,906
1999 3,004
2000 2,832
2001 2,848
2002 2,865
Years thereafter 4,772
---------------
TOTAL $ 19,227
===============
NOTE 6. EMPLOYEE BENEFITS
Employee Benefit Plans
Certain key employees of Entergy Operations participate in the
Equity Ownership Plan of Entergy Corporation and Subsidiaries (Equity
Plan) in which they receive shares of common stock based upon
achievement of specified performance goals, the costs of which are
initially deferred and then charged to income over the restricted
period. At December 31, 1997, there were shares with a cost of
$909,000 included in Other Deferred Debits for Entergy Corporation
common stock purchased related to the Equity Plan. Under the Equity
Plan in 1997 and 1996, Entergy Operations recorded compensation
expense of $202,000 (representing approximately 6,000 shares) and
$258,000 (representing approximately 8,000 shares), respectively.
Employees of Entergy Operations are also eligible to participate
in the Savings Plan of Entergy Corporation and Subsidiaries (Savings
Plan) upon meeting certain eligibility requirements. The Savings Plan
provides that the employing Entergy subsidiary may make matching
contributions to the Savings Plan in an amount equal to 50% of the
participant's contribution to the extent that the total participant
contribution is less than or equal to 6% of the participant's earnings
as defined in the Savings Plan. In 1997, 1996, and 1995, Entergy
Operations contributed $4.5 million, $4.5 million, and $4.6 million,
respectively, to the Savings Plan.
Eligible employees of Entergy Operations may participate in the
Employee Stock Ownership Plan of Entergy Corporation and Subsidiaries
(ESOP). The ESOP is a defined contribution plan. Contributions to
the ESOP, and any income thereon, are invested in Entergy Corporation
common stock and are based on the expected utilization of additional
investment tax credits in the applicable federal income tax return of
Entergy Corporation and its subsidiaries. There were no contributions
to the ESOP in the years ended December 31, 1997, 1996 and 1995. No
additional investment tax credits are available for contribution under
the ESOP. Therefore, effective January 1998, the ESOP was merged into
the Savings Plan.
Effective December 31, 1997, the Gulf States Utilities Employee
Stock Ownership Plan was amended to include eligible employees of
Entergy Operations. This plan is a defined contribution plan.
Contributions to this plan, and any income thereon, are invested in
Entergy Corporation common stock and are based on the expected
utilization of additional investment tax credits in the federal income
tax return of Entergy Gulf States, Inc.
Postretirement Benefit Plans
Eligible employees of Entergy Operations are provided pension and
certain health care and life insurance benefits upon retirement.
Substantially all employees may become eligible for these benefits if
they reach retirement age while working for Entergy Operations.
Effective June 1990, all System Energy Resources, Inc. employees
became employees of Entergy Operations. However, the employees still
remained under System Energy Resources, Inc.'s postretirement benefit
plans, and no transfers of related liabilities and assets were made.
Also, ANO and Waterford 3 employees who transferred to Entergy
Operations in June 1990 remained under Entergy Arkansas, Inc.'s and
Entergy Louisiana, Inc.'s plans, and River Bend employees who
transferred to Entergy Operations in January 1994 remained under
Entergy Gulf States, Inc.'s plans with no transfer of related
liabilities and assets.
The Retirement Plans of Entergy Corporation and its various
subsidiaries were amended to transfer assets and related liabilities
to a single Entergy Corporation Retirement Plan for all non-bargaining
employees effective January 1, 1995, and for all bargaining employees
effective December 31, 1996. The pension plans are noncontributory
and provide pension benefits that are based on employees' credited
service and compensation during the final years before retirement.
Entergy Corporation's policy is to fund pension costs in accordance
with contribution guidelines established by the Employee Retirement
Income Security Act of 1974, as amended, and the Internal Revenue Code
of 1986 as amended. The assets of the pension plans include common
and preferred stocks, fixed income securities, interest in a money
market fund, and insurance contracts.
NOTE 7. TRANSACTIONS WITH AFFILIATES
Entergy Operations has been authorized, pursuant to certain
operating agreements, to act as an agent for the Companies in the
operations, but not ownership, of ANO, River Bend, Waterford 3, and
Grand Gulf 1, respectively. In return, the Companies pay directly or
reimburse Entergy Operations for the costs associated with operating
those units.
Entergy Operations receives, pursuant to a service agreement,
technical and advisory services from Entergy Services, Inc. These
services amounted to $46.5 million in 1997, $35.4 million in 1996, and
$27.3 million in 1995 with the Companies reimbursing Entergy
Operations for their respective portions.
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Schedule XV - Comparative Income Statements
Account Description Current Year Prior Year*
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies $700,419,098 $598,545,937
458 Services rendered to nonassociate companies - -
421 Miscellaneous income or loss - -
------------ ------------
TOTAL INCOME 700,419,098 598,545,937
------------ ------------
EXPENSES - Income Statement
500-557 Power production 471,761,331 413,906,450
562 Station expenses 37,069 159,910
920 Salaries and wages 21,216,508 26,503,088
921 Office supplies and expenses 5,758,704 13,150,506
922 Administrative expense transferred - credit - -
923 Outside services employed 15,336,913 24,042,404
924 Property insurance 184,469 2,924,264
925 Injuries and damages 3,193,125 1,399,130
926 Employee pensions and benefits 20,257,555 17,915,140
928 Regulatory commission expenses 611,691 1,413,036
930.1 General advertising expenses 85,617 -
930.2 Miscellaneous general expenses 3,405,990 2,788,749
931 Rents 7,150,725 3,421,147
932 Maintenance of structures and equipment 265,735 -
403-404 Depreciation and amortization expense 1,395,027 1,161,477
408 Taxes other than income taxes 16,055,563 17,692,827
409 Income taxes (benefits) (886,837) 1,585,729
410-411 Provision for deferred income taxes 1,155,524 20,650
411.5 Investment tax credit - -
421 Miscellaneous nonoperating income (22,887) (160,000)
426.1 Donations 158,503 86,691
426.3 Penalties 56 -
426.4 Civic, political, and related activities (905) 1,605
426.5 Other deductions 170,735 50,300
427 Interest on long-term debt - -
430 Interest on debt to associate companies 838,112 560,941
431 Other interest expense - 357,967
------------ ------------
TOTAL EXPENSES - Income Statement 568,128,323 528,982,011
------------ ------------
EXPENSES - Balance Sheet
107EXP Construction work in progress 109,788,304 101,919,897
154EXP General inventory 26,118,270 (3,670,646)
163EXP Stores expense undistributed (3,761,856) (15,816,630)
165EXP Prepaid expense (676,654) (442,459)
174EXP Miscellaneous current and accrued expense 123,269 (12,487,435)
184EXP Other expenses 699,442 61,199
------------ ------------
TOTAL EXPENSES - Balance Sheet 132,290,775 69,563,926
------------ ------------
NET INCOME (LOSS) $ - $ -
============ ============
* Prior year totals were restated to comply with the FERC Uniform Systems of
Accounts, which is currently being utilized by Entergy Operations, Inc.
These totals should be used for comparative purposes only.
15 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
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
457 457-2 457-3
<S> <C> <C> <C> <C>
Arkansas Nuclear One $195,016,927 $12,767,091 $ - $207,784,018
Waterford 3 Nuclear Station 180,726,803 13,443,929 - 194,170,732
Grand Gulf Nuclear Station (1) 113,555,391 13,760,687 - 127,316,078
River Bend Nuclear Station (1) 157,107,988 14,040,282 - 171,148,270
------------ ----------- --------- ------------
TOTAL $646,407,109 $54,011,989 $ - $700,419,098
============ =========== ========= ============
(1) EOI does not render bills directly to non-associate owners of this
facility. EOI renders a bill to Associate Companies who provide invoices
to the co-owners for their allocated costs.
16 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
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> <C>
$ - $ - $ - $ - $ - $ -
--------------------------------------------------------------
TOTAL $ - $ - $ - $ - $ - $ -
==============================================================
17 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
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>
500-557 Power production $468,273,280 $3,488,051 $471,761,331 $468,273,280 $3,488,051 $471,761,331
562 Station expenses 37,069 37,069 37,069 37,069
920 Salaries & wages 15,182,055 6,034,453 21,216,508 15,182,055 6,034,453 21,216,508
921 Office supplies
and expenses 4,415,583 1,343,121 5,758,704 4,415,583 1,343,121 5,758,704
922 Administrative expense
transferred - crediT
923 Outside services
employed 13,453,374 1,883,539 15,336,913 13,453,374 1,883,539 15,336,913
924 Property insurance 181,997 2,472 184,469 181,997 2,472 184,469
925 Injuries and damages 2,659,616 533,509 3,193,125 2,659,616 533,509 3,193,125
926 Employee pensions
and benefits (10,319,957) 30,577,512 20,257,555 (10,319,957) 30,577,512 20,257,555
928 Regulatory commission
expenses 236,949 374,742 611,691 236,949 374,742 611,691
930.1 General advertising
expenses 68,091 17,526 85,617 68,091 17,526 85,617
930.2 Miscellaneous general
expenses 2,319,481 1,086,509 3,405,990 2,319,481 1,086,509 3,405,990
931 Rents 5,828,731 1,321,994 7,150,725 5,828,731 1,321,994 7,150,725
932 Maintenance of
general plant 257,165 8,570 265,735 257,165 8,570 265,735
403-404 Depreciation and
amortization 1,395,027 1,395,027 1,395,027 1,395,027
expense
408 Taxes other than
income taxes 15,163,723 891,840 16,055,563 15,163,723 891,840 16,055,563
409 Income taxes (benefits) (886,837) (886,837) (886,837) (886,837)
410-411 Provision for deferred
income taxes 1,155,524 1,155,524 1,155,524 1,155,524
412 Investment tax credit
421 Miscellaneous
nonoperating income (22,887) (22,887) (22,887) (22,887)
426.1 Donations 7,381 151,122 158,503 7,381 151,122 158,503
426.3 Penalties 56 56 56 56
426.4 Civic, political,
and related (601) (304) (905) (601) (304) (905)
activities
426.5 Other deductions 120,240 50,495 170,735 120,240 50,495 170,735
427 Interest on long-term debt
431 Other interest expense
107EXP Construction work
in progress 109,788,304 109,788,304 109,788,304 109,788,304
154EXP General inventory 26,118,270 26,118,270 26,118,270 26,118,270
163EXP Stores expenses
undistributed (7,506,868) 3,745,012 (3,761,856) (7,506,868) 3,745,012 (3,761,856)
165EXP Prepaid expense (676,654) (676,654) (676,654) (676,654)
174EXP Miscellaneous current
and accrued expense 123,269 123,269 123,269 123,269
184EXP Other expenses 699,442 699,442 699,442 699,442
-------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 646,407,109 53,173,877 699,580,986 646,407,109 53,173,877 699,580,986
-------------------------------------------------------------------------------------------------------
Compensation for use of Equity
Capital
-------------------------------------------------------------------------------------------------------
430 Interest on debt to associate 838,112 838,112 838,112 838,112
companies
-------------------------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $646,407,109 $54,011,989 $700,419,098 $646,407,109 $54,011,989 $700,419,098
=======================================================================================================
18 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
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
Total Arkansas Grand Gulf Waterford 3 River Bend
Account Description of Items Directs & Total Nuclear Nuclear Nuclear Nuclear
Number Indirects Directs One Station Station Station
<S> <C> <C> <C> <C> <C> <C> <C>
500-557 Power production $471,761,331 $468,273,280 $137,651,211 $85,084,434 $134,839,109 $110,698,526
562 Station expenses 37,069 37,069 13,315 7,982 9,496 6,276
920 Salaries & wages 21,216,508 15,182,055 4,151,054 3,453,957 3,555,755 4,021,289
921 Office supplies and expenses 5,758,704 4,415,583 1,127,475 1,215,342 839,922 1,232,844
922 Administrative expense transferred - credit
923 Outside services employed 15,336,913 13,453,374 3,446,007 3,257,561 3,162,453 3,587,353
924 Property insurance 184,469 181,997 13,652 140,984 13,708 13,653
925 Injuries and damages 3,193,125 2,659,616 556,110 721,056 695,173 687,277
926 Employee pensions and benefits 20,257,555 (10,319,957) (3,615,011) (67,811) (1,881,373) (4,755,762)
928 Regulatory commission expenses 611,691 236,949 483 235,500 483 483
930.1 General advertising expenses 85,617 68,091 11,359 20,230 19,229 17,273
930.2 Miscellaneous general expenses 3,405,990 2,319,481 717,248 682,523 509,935 409,775
931 Rents 7,150,725 5,828,731 941,624 878,020 860,617 3,148,470
932 Maintenance of general plant 265,735 257,165 73,657 60,890 60,259 62,359
403-404 Depreciation and amortization expense 1,395,027
408 Taxes other than income taxes 16,055,563 15,163,723 5,479,103 2,979,653 3,789,022 2,915,945
409 Income taxes (benefits) (886,837)
410-411 Provision for deferred income taxes 1,155,524
411.5 Investment tax credit
421 Miscellaneous nonoperating income (22,887) (22,887) (5,721) (5,722) (5,722) (5,722)
426.1 Donations 158,503 7,381 1,942 2,018 2,654 767
426.3 Penalties 56 56 14 14 14 14
426.4 Civic, political, and related activities (905) (601) (140) (154) (155) (152)
426.5 Other deductions 170,735 120,240 30,060 29,780 29,750 30,650
427 Interest on long-term debt
430 Interest on debt to associate companies 838,112
431 Other interest expense
107EXP Construction work in progress 109,788,304 109,788,304 43,220,628 18,704,196 26,530,328 21,333,152
154EXP General inventory 26,118,270 26,118,270 2,367,728 294,780 5,782,272 17,673,490
163EXP Stores expenses undistributed (3,761,856) (7,506,868) (1,313,968) (3,873,946) 1,724,705 (4,043,659)
165EXP Prepaid expense (676,654) (676,654) (78,911) (426,173) (69,693) (101,877)
174EXP Miscellaneous current and accrued expense 123,269 123,269 31,766 30,929 60,574
184EXP Other expenses 699,442 699,442 196,242 129,348 258,862 114,990
-------------------------------------------------------------------------------
TOTAL EXPENSES $700,419,098 $646,407,109 $195,016,927 $113,555,391 $180,726,803 $157,107,988
===============================================================================
19 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
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
Total Arkansas Grand Gulf Waterford 3 River Bend
Account Description of Items Indirects Nuclear Nuclear Nuclear Nuclear
Number One Station Station Station
<S> <C> <C> <C> <C> <C> <C>
500-557 Power production $3,488,051 ($154,245) $1,170,314 $1,325,571 $1,146,411
562 Station expenses
920 Salaries & wages 6,034,453 1,552,490 1,521,018 1,471,146 1,489,799
921 Office supplies and expenses 1,343,121 380,160 307,616 278,772 376,573
922 Administrative expense transferred - credit
923 Outside services employed 1,883,539 439,759 534,414 452,613 456,753
924 Property insurance 2,472 618 618 618 618
925 Injuries and damages 533,509 127,818 121,564 108,963 175,164
926 Employee pensions and benefits 30,577,512 7,645,632 7,644,518 7,641,881 7,645,481
928 Regulatory commission expenses 374,742 8,547 154 258 365,783
930.1 General advertising expenses 17,526 3,510 4,934 3,120 5,962
930.2 Miscellaneous general expenses 1,086,509 327,303 275,426 256,383 227,397
931 Rents 1,321,994 332,729 324,152 337,690 327,423
932 Maintenance of general plant 8,570 2,159 2,136 2,136 2,139
403-404 Depreciation and amortization expense 1,395,027 347,347 353,793 347,841 346,046
408 Taxes other than income taxes 891,840 304,781 197,964 197,490 191,605
409 Income taxes (benefits) (886,837) (221,754) (221,709) (221,687) (221,687)
410-411 Provision for deferred income taxes 1,155,524 288,927 288,881 288,858 288,858
411.5 Investment tax credit
421 Miscellaneous nonoperating income
426.1 Donations 151,122 37,992 37,710 37,710 37,710
426.3 Penalties
426.4 Civic, political, and related activities (304) (76) (76) (76) (76)
426.5 Other deductions 50,495 12,516 12,517 12,517 12,945
427 Interest on long-term debt
430 Interest on debt to associate companies 838,112 209,528 209,528 209,528 209,528
431 Other interest expense
107EXP Construction work in progress
154EXP General inventory
163EXP Stores expenses undistributed 3,745,012 1,121,350 975,215 692,597 955,850
165EXP Prepaid expense
174EXP Miscellaneous current and accrued expense
184EXP Other expenses -------------------------------------------------------------
TOTAL EXPENSES $54,011,989 $12,767,091 $13,760,687 $13,443,929 $14,040,282
=============================================================
20 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Departmental Analysis of Salaries
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>
Directs - Arkansas Nuclear One $78,715,999 $78,715,999 1,201
Directs - River Bend Nuclear Station (1) 52,711,246 52,711,246 773
Directs - Grand Gulf Nuclear Station (1) 46,872,075 46,872,075 807
Directs - Waterford 3 Nuclear Station 54,583,464 54,583,464 758
Indirects - Arkansas Nuclear One 5,786,322 5,786,322 61
Indirects - River Bend Nuclear Station (1) 4,813,345 4,813,345 40
Indirects - Grand Gulf Nuclear Station (1) 4,846,943 4,846,943 41
Indirects - Waterford 3 Nuclear Station 4,746,224 4,746,224 39
------------ ------------ -----
TOTAL $253,075,618 $253,075,618 3,720
============ ============ =====
</TABLE>
(1) EOI does not render bills directly to non-associate owners of this
facility. EOI renders a bill to Associate Companies who provide
invoices to the co-owners for their allocated costs.
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Outside Services Employed
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 (2) through 21 (11)
21 OF 28 PAGES ( 1 )
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Outside Services Employed
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
<S> <C> <C>
Outside Services - Auditing
COOPERS & LYBRAND NA $76,833
-------
Subtotal 76,833
-------
Outside Services - Engineering
ABB CE NUCLEAR POWER NA 13,238,299
APTECH ENGINEERING SERVICES NA 151,941
AURA ENERGY CORP NA 1,958,920
BARNHART CRANE & RIGGING NA 188,191
BCP TECHNICAL SERVICES INC NA 5,473,617
BECHTEL POWER CORPORATION NA 1,299,882
BENSINGER DUPONT & ASSOC INC NA 111,736
BWIP INTERNATIONAL INC NA 80,350
CHEM NUCLEAR SYSTEMS INC NA 1,406,385
COOPER ENERGY SERVICES GROUP NA 313,370
COSTA DEL MAR ENGINEERING CO NA 254,380
CRITERIUM STEIN ENGINEERS NA 47,400
CSI BURKHALTER RIGGING NA 62,451
DOMINIION ENGINEERING INC NA 63,000
DP ENGINEERING NA 563,725
DUKE ENGINEERING & SERVICES INC NA 4,045,130
ERIN ENGINEERING & RESEARCH NA 434,606
FRAMATOME TECHNOLOGIES INC NA 5,405,458
GENERAL ELECTRIC CO NA 3,910,211
GENERAL ELECTRIC NUCLEAR ENERGY NA 2,063,252
GULF ENGINEERING CO INC NA 2,508,364
HARSTEAD ENGINEERING ASSOCIATES INC NA 71,476
HENNIGAN ENGINEERING CO INC NA 256,180
INSERVICE ENGINEERING CO NA 194,446
KALSI ENGINEERING INC NA 309,700
KEYSTONE ENGINEERING INC NA 169,060
MDM ENGINEERING CORP NA 335,531
MECHANICAL DYNAMICS & ANALYSIS INC NA 264,573
NAI ENGINEERING SERVICES NA 62,878
OAK RIDGE RISK MANAGEMENT NA 166,102
OMEGA TECHNICAL SERVICES INC NA 180,885
ONSITE ENGINEERING & MANAGEMENT INC NA 172,259
OTHER ENGINEERING SERVICES <$25,000 (17) NA 88,732
PATSCO BELCAN TECHNICAL SERVICES NA 201,457
RAYTHEON ENGINEERS NA 11,291,078
SARGENT & LUNDY ENGINEERS NA 2,883,762
SCIENCE APPLICATIONS INTERNATIONAL CORP NA 908,049
SCIENTECH INC NA 286,617
SCIENTIFIC ECOLOGY GROUP INC NA 2,355,260
SCOTT MADDEN & ASSOCIATES NA 99,176
SIEMENS POWER CORP. NA 9,090,765
SIERRA NUCLEAR CORP NA 127,017
STRUCTURAL INTEGRITY ASSOC INC NA 114,244
SWEC - GMC NA 39,722,132
THERMAL ENGINEERING INTERNATIONAL NA 3,359,036
VECTRA TECHNOLOGIES INC NA 1,554,798
VOLT TECHNICAL SERVICES NA 1,896,029
WESTINGHOUSE ELECTRIC CORP NA 16,388,337
ZETEC INC NA (225,623)
------------
Subtotal 135,904,624
------------
Outside Services - Management Consultants
ANDERSON ENGINEERING CONSULTANTS NA 144,969
APPLIED REASEARCH & ENGINEERING SERVICES NA 75,842
ATLANTIC GROUP INC NA 3,391,065
C & E CONSULTING SERVICES NA 27,035
CALGON INC NA 1,359,032
COMMUNICATIONS SPECIALIST INC NA 55,102
DEVONRUE LTD INC NA 120,142
ENERCON SERVICES INC NA 4,591,718
ENERGY SYSTEMS SOLUTIONS INC NA 28,750
GALLE CONSULTING SERVICES NA 30,816
HELGESON SCIENTIFIC SERVICES NA 55,979
HURST CONSULTING, INC NA 320,927
IEPSON CONSULTING ENGINEERS NA 442,066
INDEPENDENT CONSULTANT SERVICES NA 221,921
INNOVATIVE TECHNOLOGY SOLUTIONS INC NA 33,495
MARATHON CONSULTING GROUP INC NA 42,685
MOLTEN METAL TECHNOLOGIES INC NA 763,235
NILSSON PROFESSIONAL CONSULTING NA 668,598
NUCLEAR CONSULTING SERVICES INC NA 73,291
OTHER MGT CONSULTING SERVICES <$25,000 (17) NA 168,444
SEEK CONSULTING GROUP INC NA 189,560
SPEC CONSULTANTS INC NA 1,258,149
THERMO NUTECH EBERLINE ANAYLTICAL NA 45,718
TJBG CONSULTING INC NA 135,864
ULTIMATE POWER SOLUTIONS INC NA 62,692
ULTRA QUEST MANAGEMENT CORP NA 114,060
-----------
Subtotal 14,421,155
-----------
Outside Services - Other
3M COMPANY NA 38,482
3SPACE INC NA 31,086
ABBOTT LABS NA 33,314
A E C L TECHNOLOGIES NA 135,665
A & W INDUSTRIAL PAINTING NA 65,174
AETNA HEALTH PLANS NA 109,455
AGGREKO INC NA 246,102
AIR PRODUCTS & CHEMICALS INC NA 26,211
ALGOR INC NA 28,857
ALLWASTE ENVIRONMENTAL SERVICES NA 196,904
ALTRAN CORP NA 146,300
ALTRIS SOFTWARE INC NA 220,544
AM PM TEMPORARY SERVICES NA 202,968
AMERICAN CONTRACTORS & LABOR SERVICE NA 381,974
AMERICAN ECOLOGY RECYCLE CENTER NA 643,500
AMERICAN ELECTRIC POWER CO INC NA 35,000
AMERICAN SOCIETY OF MECHANICAL ENGINEERS NA 50,299
AMERICAN TECHNICAL INSTITUTE NA 100,783
AMERICAN TECHNICAL SERVICES NA 183,655
AMERON PROTECTIVE COATINGS NA 107,903
ANBEROKA SERVICES NA 106,503
ANCHOR DARLING VALVE CO NA 36,115
APOGEE SOFTWARE SYSTEMS INC NA 299,747
ARKANSAS DEPT OF FINANCE & ADMINISTRATION NA 721,631
ARKANSAS TECH UNIVERSITY NA 35,475
ARKWRIGHT MUTUAL INSURANCE NA 319,003
ASSOCIATED TECHNICAL TRAINING SERVICES NA 111,900
BAKER TANKS GULF SOUTH INC NA 53,118
BALL MECHANICAL SERVICES NA 26,752
BARRON SERVICES INC NA 179,587
BATON ROUGE MACHINE WORKS INC NA 28,259
BATTELLE NORTHWEST NA 97,546
BECHTEL SOFTWARE INC NA 115,386
BENTLY NV CORP NA 45,231
BR BLACKMARR & ASSOCIATES NA 34,845
BRAND SCAFFOLD BUILDERS INC NA 122,817
BRENT NOBLE CARPENTRY NA 90,364
BROWN CUNNINGHAM AND GANNUCH NA 112,383
BROWNING FERRIS INDUSTRIES NA 82,455
BUQUET & LEBLANC INC NA 35,848
BURRIS INC NA 33,919
CAIN INDUSTRIAL SERVICES NA 344,118
CALDON INC NA 123,394
CALVERT CO NA 184,375
CANBERRA INDUSTRIAL INC NA 109,039
CARBOLINE CO INC NA 29,095
CAREER CHECK INC NA 48,172
CARTER CHAMBERS SUPPLY INC NA 29,318
CASE MATE INC NA 135,000
CATARACT INC NA 308,347
CENTRAL INTERSTATE NA 255,000
CETROM ARCHITECTS & ENGINEERS NA 35,174
CHAR SERVICES INC NA 130,952
CHELAN INC NA 540,911
CHOICEPOINT NA 326,245
CIRLOT AGENCY NA 26,162
CLEVELAND ELECTRIC CO OF ARKANSAS NA 35,607
CM TECH CORP NA 39,767
COLTEC INDUSTRIES INC NA 32,979
COMPUTATIONAL SYSTEMS INC NA 293,750
COMPUTER ASSOCIATES INTERNATIONAL INC NA 28,949
CONCO SERVICES CORP NA 26,020
CONTINENTAL TRAFFIC SERVICE INC NA 83,353
CONTROL TECHNOLOGIES INC NA 179,803
COOLING TOWER TECHNOLOGIES INC NA 250,703
COOPER CAMERON CORP NA 76,412
COOPERHEAT INC NA 57,432
COPELAND & JOHNS INC NA 29,696
COREY REGAN INC NA 85,240
COUNTRY CARPETS NA 33,002
CRANCH HARDY & ASSOCIATES INC NA 42,989
CROSBY VALVE & GAGE NA 485,724
DATA PORT INC NA 87,995
DATAPLEX CORP NA 57,059
DEFENDER SERVICES INC NA 322,204
DEPENDABLE A/C CO INC NA 45,390
DEPOSIT GUARANTY NATIONAL BANK NA 71,367
DEPARTMENT OF EMERGENCY MANAGEMENT NA 35,000
DIGITAL EQUIPMENT CORP NA 87,556
DIVERSIFIED TECHNOLOGY SERVICE INC NA 514,365
DONALD C SHELTON NA 69,275
DOUGLAS INC NA 28,623
DOVER ELEVATOR CO NA 77,015
DRESSER RAND NA 59,929
DRYADES SAVINGS BANK NA 49,465
DUBOSE NATIONAL ENERGY SERVICES INC NA 283,968
EARTH TECH NA 36,172
EASTERN TECHNOLOGIES INC NA 697,755
ECOLOCHEM INC NA 42,916
EG&G INSTRUMENTS NA 28,000
ELECTRO TEST INC NA 157,343
ELITE PERSONNEL SERVICE INC NA 76,905
EMERALD COAST SERVICES INC NA 345,768
ENCORE COMPUTER CORP NA 35,310
ENERGY TRANSPORTATION INC NA 35,000
ENERTECH INC NA 195,916
ENGINEERING SERVICE NA 32,611
ENTERGY SERVICES INC A 12,627,613
ENVIRONMENTAL ENTERPRISES INC NA 91,732
ENVIROSOLVE SOUTHWEST INC NA 67,490
EPRI NA 1,106,800
E W SAYBOLT & CO INC NA 52,507
EXCEL SERVICES CORP NA 638,148
EXPRESS SERVICES INC NA 252,399
EYELINE OPTICAL NA 39,429
FEDERAL EMERGENCY MANAGEMENT INC NA 585,984
FILENET CORP NA 29,115
FIRST UNION NATIONAL BANK NA 30,159
FISCAL SERVICES NA 721,519
FISHER SCIENTIFIC CO NA 33,922
FLOWMORE SERVICES INC NA 43,500
FPI INTERNATIONAL NA 40,882
FREEZE TECHNOLOGY INTERNATIONAL INC NA 89,113
FRHAM SAFETY PRODUCTS INC NA 144,632
FROST-BARBER INCORPORATED NA 53,950
FRU CON TECHNICAL SERVICES INC NA 127,618
FTN ASSOCIATION NA 25,022
FUEL TANK MAINTENANCE NA 117,527
FURMANITE AMERICA INC NA 137,937
GARDEN & PET CENTER NA 88,164
GARRISON CO NA 36,468
GCR & ASSOCIATES INC NA 37,534
GD BARRI AND ASSOCIATES NA 222,637
GDS ASSOCIATES INC NA 83,482
GENERAL PHYSICS CORP NA 1,196,784
GERHARDTS INC NA 41,072
GMW MAINTENANCE INC NA 83,184
GRAY HILSMAN MD NA 99,280
GREENBRIAR DIGGING SERVICE NA 502,327
H BROWN MACHINE SHOP INC NA 125,595
H PARKER & CO INC NA 51,950
HENDERSON SPECIALTIES INC NA 160,131
HI POINT INC NA 46,476
HI TECH SERVICES, INC NA 418,503
HINDS COMMUNITY COLLEGE NA 32,947
HJ MERRIHUE INC NA 204,546
HOLTEC INTERNATIONAL NA 340,850
HONEYWELL INC NA 122,560
HYDROCHEM INDUSTRIAL SERVICES INC NA 309,268
ICESOLV INC NA 46,550
INDUSTRIAL EQUIPMENT & VEHICLE MAINTENANCE NA 88,221
INDUSTRIAL MEDICAL CENTER NA 80,158
INDUSTRIAL PRESSURE INC NA 30,222
INFORMATION HANDLING SERVICES INC NA 131,371
INGERSOLL DRESSER PUMP CO INC NA 163,103
INSTITUTE OF NUCLEAR POWER NA 73,520
INSULATIONS INC NA 1,596,321
INTECH INC NA 204,750
INTEGRA SERVICES TECHNOLOGY INC NA 28,427
INTERGRAPH CORP NA 53,447
IONICS INC NA 796,837
J E MERIT CONSTRUCTORS INC NA 532,646
JOHN H CARTER CO INC NA 33,384
JOHN M MONTGOMERY NA 125,326
JULIUS A PAYNE CO INC NA 35,806
KALY NUCLEAR SERVICES NA 182,159
KELLY INDUSTRIES INC NA 39,384
KEPNER TREGOE INC NA 38,202
KINDRICK TRUCKING CO INC NA 30,886
KOCH SULFUR PRODUCTS CO INC NA 31,071
KOS INC NA 109,094
LA DEPARTMENT OF ENVIRONMENTAL QUALITY NA 163,945
LA LANDSCAPING MAINTENANCE CO NA 25,205
LA LIFT & EQUIPMENT NA 33,045
LA MAINTENANCE SERVICES INC NA 1,048,687
LA OFFICE OF EMERGENCY PREPAREDNESS NA 69,000
LOUISIANA STATE UNIVERSITY NA 123,591
LAIDLAW ENVIRONMENTAL SERVICES NA 70,489
LASSO & ASSOCIATES NA 29,898
LEASING SOLUTIONS INC NA 41,511
LEROY DANOS MAINTENANCE SERVICES NA 132,174
LIBERTY TECHNOLOGIES NA 65,857
M DIRK ORY MD NA 39,468
MANPOWER INC NA 49,979
MANUFACTURING SCIENCES CORP NA 185,705
MARRIOT HOTEL SERVICES INC NA 27,380
MEASUREMENTS INC NA 25,730
MGP INSTRUMENTS INC NA 33,068
MID SOUTH DREDGING CO NA 159,599
MONTGOMERY KONE INC NA 104,616
MPR ASSOCIATES NA 454,394
MS EMERGENCY MANAGEMENT AGENCY NA 248,350
MS ENTERPRISE FOR TECHNOLOGY NA 237,249
NALCO CHEMICAL CO NA 43,030
NCS CORPORATION NA 76,812
NES INC NA 46,953
NICHOLAS ACOUSTICS & SPECIALTY CO NA 49,802
NICHOLS CONSTRUCTION CORP NA 44,750
NISYS CORP NA 112,784
NOLA COMPUTER SERVICES INC NA 36,985
NORSTAN COMMUNICATIONS INC NA 357,200
NORTH AMERICAN CONTRACT EMPLOYEE SERVICES NA 135,842
NORTH CAROLINA STATE UNIVERSITY NA 25,000
NSSI SOURCES & SERVICES INC NA 26,000
NTS TECHNICAL SERVICES INC NA 1,918,198
NUCLEAR LOGISTICS INC NA 66,027
NUCLEAR PLACEMENT SERVICES NA 111,734
NUCON INC NA 40,782
NUENERGY INC NA 50,558
NUKEM INC NA 110,247
NUMANCO LLC NA 3,384,067
NUS INFORMATION SERVICES INC NA 26,500
NWT MFG CORP NA 29,977
OCHSNER CLINIC NA 124,521
OEM INC NA 697,583
ON TARGET TECHNOLOGIES NA 172,144
OPERATION TECHNOLOGY INC NA 33,949
OTHER SERVICES - <$25,000 (959) NA 4,547,497
OXFORD & ASSOCIATES INC NA 282,401
PACE ANALYTICAL SERVICES INC NA 25,862
PANASONIC INDUSTRIAL CO NA 45,284
PAR SYSTEMS INC NA 144,232
PCI ENERGY SERVICES NA 210,435
PDMA CORP NA 75,294
PEFCO TECHNICAL INC NA 61,862
PERFORMANCE CONTRACTING INC NA 291,168
PETER B STARK & ASSOCIATES INC NA 66,380
PHILIP C WAGNER NA 70,561
PINKERTON SECURITY & INVESTIGATION NA 174,085
PLANT MACHINE WORKS INC NA 36,196
PLASTOCOR INC NA 49,122
PN SERVICES, INC NA 172,534
POLAROID CORP NA 27,449
POOLED EQUIPMENT INVENTORY CO NA 59,314
POWER AND CONTROL SYSTEMS INTERNATIONAL NA 51,578
POWERCERV NA 26,796
PRODUCTIVITY POINT INTERNATIONAL NA 53,226
PROFESSIONAL BUILDING SERVICE NA 471,949
PYBURN & ODOM INC NA 35,511
PYTHON CORP NA 108,760
RALPH A HILLER CO NA 235,048
RAZORBACK DISPOSAL INC NA 48,414
RED SIMPSON INC NA 44,409
RED STICK ARMATURE WORKS INC NA 82,114
RHONE POULENC BASIC CHEMICAL NA 164,572
RHR INTERNATIONAL CO NA 232,089
RIVER PARISH DISPOSAL INC NA 132,603
RIVER PARISH MAINTENANCE NA 2,840,955
RIVER REGION MEDICAL CORP NA 124,747
RIVERLANDS HORTICULTURAL SERVICE NA 38,999
RNI TECHNOLOGIES NA 44,630
ROBERT D MARTIN NA 29,284
S3 TECHNOLOGIES NA 71,741
SALCO CONSTRUCTION NA 72,605
SANFORD & ASSOCIATES NA 39,656
SAXON MACHINE TOOL REBUILDERS INC NA 65,485
SCOTT CONSTRUCTION EQUIPMENT NA 32,835
SEA BREX MARINE NA 891,929
SEAMOSS INC NA 27,567
SEARCH & RECRUIT INTERNATIONAL NA 70,350
SECURITY SUPPORT SERVICES NA 27,536
SERVICE PUMP & COMPRESSOR INC NA 47,211
SHEPHERD SALES & SERVICE INC NA 33,136
SILICON GRAPHICS COMPUTER SYSTEMS NA 26,071
SMITHKLINE BEECHAM CLINICAL LAB NA 31,925
SOFTWARE SENSE SYSTEMS INC NA 32,954
SOUTH MISSISSIPPI EPA NA 48,684
SOUTHERLAND FABRICATION NA 36,824
SOUTHWEST ELECTRIC CO NA 126,777
SOUTHWEST RESEARCH INSTITUTE NA 76,019
SPECTRA INC NA 58,153
SPH CRANE & HOIST INC NA 32,615
ST CHARLES PARISH NA 95,000
ST JOHN THE BAPTIST PARISH NA 120,000
STANDARD MAINTENANCE & RENTALS NA 55,613
STANDARD SUPPLY & HARDWARE NA 281,982
STAR SERVICE INC NA 197,822
STATE OF LOUISIANA MILITARY DEPARTMENT NA 34,500
STEVENSON & ASSOCIATES NA 40,624
STEWART D EBNETER NA 44,271
STONE & WEBSTER CONSTRUCTION CO NA 116,974
STUDSVIK OF AMERICA NA 37,205
SULZER BINGHAM PUMPS INC NA 26,360
SYNERGY NA 113,679
SYNETICS CORP NA 183,707
SYSECA INC NA 42,615
TARGET ROCK CORP NA 35,317
TAYLOR BACKHOE & NURSERY NA 102,150
TEAM INDUSTRIAL SERVICES INC NA 62,153
TEMPO INC NA 296,773
TENERA OPERATIONS CO NA 28,970
TENSAS PARISH OFFICE OF EMERGENCY NA 90,934
TERRY TRANE SERVICE AGENCY INC NA 44,388
TN VALLEY AUTHORITY NA 114,124
TODAY'S OFFICE NA 216,926
TODD ELECTRIC INC NA 193,851
TRAINA MECHANICAL INC NA 40,336
TRANSCO PRODUCTS INC NA 648,571
TULANE UNIVERSITY NA 70,000
UNDERWATER CONSTRUCTION CORP NA 45,039
UNIVERSAL PERSONNEL SERVICE CO NA 48,353
UNIVERSITY OF MARYLAND OFFICE NA 115,657
UTILITY SYSTEMS SERVICES INC NA 558,563
VATTENFALL USA NA 663,990
VECTRA WASTE SERVICES NA 412,264
VISION ASSOCIATES INC NA 125,115
VPA CORPORATION NA 131,776
WACHS TECHNICAL SERVICES INC NA 63,610
WACKENHUT CORP NA 13,009,817
WAL MART STORES INC NA 25,015
WASHINGTON PUBLIC POWER SUPPLY NA 110,000
WASTE MANAGEMENT NA 93,971
W D ASSOCIATES INC NA 981,818
WELDING SERVICES INC NA 315,061
WELDING TESTING LAB INC NA 37,214
WESTERN STAFF SERVICES NA 336,868
WESTERN TEMPORARY SERVICES NA 359,506
WESTROPE INDUSTRIAL COATING NA 82,388
WILLIAMS INDUSTRIAL SERVICES INC NA 194,430
WILTEL COMMUNICATIONS SYSTEMS NA 88,141
WOOD RESOURCES CORP NA 54,000
WYLE LABORATORIES NA 148,717
YANKEE ATOMIC ELECTRIC NA 25,440
YORK INTERNATIONAL CORP NA 89,305
------------
Subtotal 84,761,057
------------
TOTAL $235,163,669
============
21 OF 28 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Employee Pensions and Benefits
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
Group Dental Insurance $177,444
Group Life Insurance 761,662
Group LTD Insurance 593,965
Group Medical Insurance 13,970,842
Savings Plan 4,488,177
Special Services - Entergy Services Inc. 1,858,974
-----------
TOTAL $21,851,064
===========
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
General Advertising Expenses
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
Public Relations J & J Specialty Advertising $414,113
Ramona Robuck Advertising Corp 16,651
Millner & Associates 15,114
Ketco Advertising Specialities Co 5,526
Channing L Bete Co Inc. 4,496
Natchez Democrat 3,905
Others less than $3,000 16,929
Recruiting Entergy Services Inc. 35,418
Others less than $3,000 3,965
--------
TOTAL $516,117
========
22 OF 28 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Miscellaneous General Expenses
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 $115,583
Nuclear Energy Institute Fees 1,119,838
Institute of Nuclear Power Operations Inc. Fees 2,056,630
Electric Power Research Institute Fees 2,709,071
Other 173,760
----------
TOTAL $6,174,882
==========
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Rents
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 $3,383,568
Office Equipment 2,546,224
Tool 451,323
Computer Equipment 2,229,545
Telecommunications 1,104,472
Entergy Services Inc. Billings 3,540,401
Other 2,291,951
-----------
TOTAL $15,547,484
===========
23 OF 28 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Taxes Other Than Income Taxes
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
OTHER THAN U.S. GOVERNMENT TAXES:
Ad Valorem $89,785
Franchise 2,643
State Unemployment 308,099
Other Payroll Taxes (315,987)
-----------
SUBTOTAL 84,540
-----------
U.S. GOVERNMENT TAXES:
FICA 14,933,035
Federal Unemployment 154,201
Other Payroll Taxes 2,019,129
-----------
SUBTOTAL 17,106,365
-----------
TOTAL $17,190,905
===========
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Donations
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 Purpose of Donation Amount
United Way Charity $57,145
Junior Achievement of Mississippi Contribution 8,585
Chamber of Commerce Contribution 5,500
Mississippi State University Foundation Contribution 4,254
USS Louisiana Commissioning Foundation Contribution 4,500
Art Forms Screenprinting Contribution 3,956
Mississippi Manufacturers Association Contribution 3,250
Port Gibson Main St Inc. Contribution 3,000
Van Winkle Elementary School Contribution 3,000
Various Associations/Charities Contribution 65,313
--------
TOTAL $158,503
========
24 OF 28 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Other Deductions
Instructions:
Provide a listing of the amount included in "Other Deductions," classifying
such expenses according to their nature.
Description Name of Payee Amount
Legal, consulting, entertainment Entergy Services Inc. $120,186
and other
Congressional Information Program Nuclear Energy Institute 12,258
sponsorships
Awards J & J Specialty Advertising 11,512
Congressional Information Program Wyndham Hotel 9,205
lodging
Entertainment and other Various 17,574
--------
TOTAL $170,735
========
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
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 14 ( 2 ) through 14 ( 6 ).
25 OF 28 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Organization Chart
See pages 26 (1) through 26 (9)
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Methods of Allocation
The allocation of expenses not directly attributable to a particular nuclear
station are based on factors such as generating capacity, number of employees,
number of plant sites, number of vouchers, and man hours worked. These
expenses are allocated using expense work orders which have a fixed allocation
method assigned. New allocation methods are added and existing methods are
modified as needed.
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1997
Annual Statement of Compensation for Use of Capital Billed
- None -
26 OF 28 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #1 - Group President & Chief Nuclear Operations Officer
President & Chief Nuclear Operations Officer
Senior Executive Secretary
Senior Executive Secretary
Direct Reports:
Director, Business Services
Director, Nuclear Fuels
Director, Total Quality
Director, Human Resources - Nuclear
Executive Vice President
Vice President, Operations
Vice President, Finance & Administration/Assistant Treasurer
General Attorney - Generation
Chart #2 - Director of Business Services
Director, Business Services
Senior Secretary
Direct Reports:
Manager, Regulatory & Performance Reporting
Manager, Financial Control
26 OF 28 PAGES ( 1 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #3 - Manager, Regulatory and Performance Reporting
Manager, Regulatory and Performance Reporting
Direct Reports:
Senior Lead Accountant
Senior Staff Accountant
Senior Lead Financial Analyst
Senior Lead Financial Analyst
Financial Analyst II
Chart #4 - Manager, Financial Control
Manager, Financial Control
Direct Reports:
Financial Analyst III
Financial Analyst III
Financial Analyst III
Financial Analyst III
Senior Financial Analyst
Senior Accountant
Specialist IV - Central
Student Employee
26 OF 28 PAGES ( 2 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #5 - Director, Nuclear Fuels
Director, Nuclear Fuels
Senior Secretary
Direct Reports:
Senior Engineer
Coordinator, Nuclear Fuels Supply
Chart #6 - Director, Total Quality
Director, Total Quality
Senior Secretary
Direct Reports:
Coordinator, Quality
Coordinator, Safety Review
Technical Specialist IV
Quality Specialist IV
Senior Lead Facilitator
Senior Lead Facilitator
Senior Lead Facilitator
Senior Facilitator
26 OF 28 PAGES ( 3 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #7 - Director, Human Resources - Nuclear
Director, Human Resources - Nuclear
Senior Secretary
Direct Reports:
Lead Human Resources Representative
Lead Human Resources Representative
Human Resources Representative
Human Resources Representative
Human Resources Representative
Manager, Employee Relations
Manager, Employee Relations
Manager, Employee Relations
Manager, Employee Relations
Specialist IV - Central
Student Employee
Chart #8 - Executive Vice President
Executive Vice President
Senior Executive Secretary
Direct Reports:
Vice President Operations - River Bend
Vice President Operations - Grand Gulf Nuclear
Vice President Operations - Waterford 3
Vice President Operations - Arkansas Nuclear One
Vice President Support
Vice President Engineering
26 OF 28 PAGES ( 4 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #9 - Vice President Operations River Bend Nuclear Station
Vice President Operations River Bend Nuclear Station
Executive Secretary
Direct Reports:
Director, Training
Director, Site Support
Director, Nuclear Safety & Regulatory Affairs
Director, Quality
General Manager, Plant Operations
Manager, Change
Coordinator, Site Administration Program
Trainee, Operations Management
Chart #10 - Vice President Operations Grand Gulf Nuclear Station
Vice President Operations Grand Gulf Nuclear Station
Executive Secretary
Direct Reports:
Director, Nuclear Safety & Regulatory Affairs
Director, Plant Project & Support
Director, Quality
General Manager, Plant Operations
Manager, Training
Coordinator, Site Administration Program
26 OF 28 PAGES ( 5 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #11 - Vice President Operations Waterford 3 Nuclear Station
Vice President Operations Waterford 3 Nuclear Station
Executive Secretary
Direct Reports:
Director, Quality
Director, Nuclear Safety & Regulatory Affairs
Director, Plant Modifications & Construction
Director, Site Support
Director, Training
General Manager, Plant Operations
Chart # 12 - Vice President Operations Arkansas Nuclear One
Vice President Operations Arkansas Nuclear One
Executive Secretary
Direct Reports:
Director, Licensing
Director, Training
Director, Support
Director, Quality
Director, Quality
Business Agent
Manager, Plant Modifications
General Manager, Plant Operations
Coordinator, Site Administration Program
26 OF 28 PAGES ( 6 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #13 - Vice President Operations Support
Vice President Operations Support
Executive Secretary
Direct Reports:
Director, Nuclear Support-Operations, Maintenance &
Technical
Director, Material, Purchasing & Contracts
Director, Nuclear Safety & Licensing
Manager, Corporate Assessments
Administrator Coordinator II
Manager, Security
Chart #14 - Vice President Engineering
Vice President Engineering
Executive Secretary
Direct Reports:
Director, Design Engineering
Director, Design Engineering
Director, Design Engineering
Director, Design Engineering
Manager, Engineering Support
Manager, Engineering Programs
Manager, Nuclear Engineering Analysis
Project Manager, Steam Generation
26 OF 28 PAGES ( 7 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #15 - Vice President Operations
Vice President Operations
Direct Reports:
Director, Modification & Special Projects
Director, Nuclear Licensing
Manager, Engineering Design
Chart #16 - Vice President, Finance &
Administration/Assistant Treasurer
Vice President, Finance & Administration/Assistant Treasurer
Senior Secretary
Direct Reports:
Director, Human Resources - Maine Yankee
General Manager
Manager, Financial Control
Manager, Engineering Design
Senior Financial Analyst
Senior Financial Analyst
Senior Accountant
Technician Assistant
Technician Assistant
Communication Specialist III
Engineer II
26 OF 28 PAGES ( 8 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1997
Organization Charts
Chart #17 - General Attorney - Generation
General Attorney, Generation
Executive Secretary
Direct Reports:
Coordinator, Legal & Risk Management
Analyst III
26 OF 28 PAGES ( 9 )
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
Signature Clause
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange Commission
issued the reunder, the undersigned company has duly caused this report to
be signed on its behalf by the undersigned officer the reunto duly authorized.
Entergy Operations, Inc.
(Name of Reporting Company)
By: /s/ Louis E. Buck, Jr.
(Signature of Signing Officer)
Louis E. Buck, Jr. Vice President and
Chief Accounting Officer
(Printed Name and Title of Signing Officer)
Date: April 29, 1998
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR2
<CIK> 0000867439
<NAME> ENTERGY OPERATIONS, INC.
<SUBSIDIARY>
<NUMBER> 026
<NAME> ENTERGY OPERATIONS, 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> 3,430,005 4,805,581
<TOTAL-INVESTMENTS> 0 0
<TOTAL-CURRENT-ASSETS> 46,798,776 36,648,090
<TOTAL-DEFERRED-DEBITS> 1,734,039 2,727,001
<OTHER-ASSETS-AND-DEBITS> 0 0
<TOTAL-ASSETS-AND-DEBITS> 51,962,820 44,180,672
<TOTAL-PROPRIETARY-CAPITAL> 1,000,000 1,000,000
<TOTAL-LONG-TERM-DEBT> 0 0
<NOTES-PAYABLE> 0 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 14,951,887 14,907,757
<OTHER-CURR-AND-ACCRUED-LIAB> 34,922,964 26,797,872
<TOTAL-DEFERRED-CREDITS> 250,000 1,253,652
<DEFERRED-INCOME-TAX> 1,020,793 0
<TOT-LIABIL-AND-PROPRIET-CAP> 51,962,820 44,180,672
<SERVICES-ASSOCIATE-COMPANIES> 700,419,098 598,545,937
<SERVICES-NON-ASSOCIATE-COMP> 0 0
<MISC-INCOME-OR-LOSS> 0 0
<TOTAL-INCOME> 700,419,098 598,545,937
<SALARIES-AND-WAGES> 21,216,508 26,503,088
<EMPLOYEE-PENSION-AND-BENEFIT> 20,257,555 17,915,140
<OTHER-EXPENSES> 658,945,035 554,127,709
<TOTAL-EXPENSES> 700,419,098 598,545,937
<NET-INCOME> 0 0
<TOTAL-EXPENSES-DIRECT-COST> 646,407,109 515,089,570
<TOTAL-EXPENSES-INDIRECT-COST> 54,011,989 83,456,367
<TOT-EXP-DIRECT-AND-INDIRECT> 700,419,098 598,545,937
<PERSONNEL-END-OF-YEAR> 3,720 3,728
</TABLE>
