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Previous: BPI PACKAGING TECHNOLOGIES INC, 10-K405/A, 1999-04-26 |
Next: CROSS TIMBERS OIL CO, DEF 14A, 1999-04-26 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
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. Nathan E. Langston VP, Chief Accounting Officer
(Name) (Title)
P.O. Box 61000, New Orleans, La. 70161
(Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
Entergy Corporation
<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.
2 OF 27 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Listing Of Schedules and Analysis of Accounts
<TABLE>
<CAPTION>
Schedule or Page
Description of Schedules and Accounts Account Number Number
<S> <C> <C>
Comparative Balance Sheets Schedule I 4-5
Service Company Property Schedule II 6
Accumulated Provision for Depreciation and Amortization of Service
Company Property Schedule III 7
Investments Schedule IV 8
Accounts Receivable from Associate Companies Schedule V 8
Fuel Stock Expenses Undistributed Schedule VI 9
Stores Expense Undistributed Schedule VII 9
Miscellaneous Current and Accrued Assets Schedule VIII 10
Miscellaneous Deferred Debits Schedule IX 10
Research, Development, or Demonstration Expenditures Schedule X 10
Proprietary Capital Schedule XI 11
Long-Term Debt Schedule XII 12
Current and Accrued Liabilities Schedule XIII 13
Notes to Financial Statements Schedule XIV 13
Comparative Income Statements Schedule XV 14
Analysis of Billing - Associate Companies Account 457 15
Analysis of Billing - Nonassociate Companies Account 458 16
Analysis of Charges for Service - Associate and Nonassociate Schedule XVI 17
Companies
Schedule of Expense Distribution by Department or Service Function Schedule XVII 18-19
Departmental Analysis of Salaries Various Accounts 20
Outside Services Employed Various Accounts 20
Employee Pensions and Benefits Various Accounts 21
General Advertising Expenses Various Accounts 21
Miscellaneous General Expenses Various Accounts 22
Rents Various Accounts 22
Taxes Other Than Income Taxes Various Accounts 23
Donations Various Accounts 23
Other Deductions Various Accounts 24
Notes to Statement of Income Schedule XVIII 24
Financial Data Schedule Schedule XIX 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
Signature 27
3 OF 27 PAGES
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
Schedule I - Comparative Balance Sheets
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,
1998 1997
SERVICE COMPANY PROPERTY
<S> <C> <C> <C>
101 Service company property (Schedule II) $11,964,652 $11,254,383
107 Construction work in progress (Schedule II) 49,316 636,230
-------------------------
Total Property 12,013,968 11,890,613
-------------------------
108 Less accumulated provision for depreciation and amortization of service
company property (Schedule III) 9,399,162 8,460,608
-------------------------
Net Service Company Property 2,614,806 3,430,005
-------------------------
INVESTMENTS
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
-------------------------
Total Investments - -
-------------------------
CURRENT AND ACCRUED ASSETS
131 Cash 338 2,901
135 Working funds 2,893 5,517
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - 193,570
145 Notes receivable from associate companies 27,000 22,000
146 Accounts receivable from associate companies (Schedule V) 40,483,602 46,432,407
152 Fuel stock expenses undistributed (Schedule VI) - -
163 Stores expense undistributed (Schedule VII) - -
174 Miscellaneous current and accrued assets (Schedule VIII) 335,145 142,381
-------------------------
Total Current and Accrued Assets 40,848,978 46,798,776
-------------------------
DEFERRED DEBITS
184 Clearing accounts 237,448 7,981
186 Miscellaneous deferred debits (Schedule IX) 620,005 1,434,387
188 Research, development, or demonstration expenditures (Schedule X) - -
190 Accumulated deferred income taxes 1,302,284 493,019
-------------------------
Total Deferred Debits 2,159,737 1,935,387
-------------------------
TOTAL ASSETS AND OTHER DEBITS $45,623,521 $52,164,168
=========================
4 OF 27 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
Schedule I - Comparative Balance Sheets
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31,
1998 1997
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) - -
------------------------
Total Long-term Debt - -
------------------------
OTHER NON-CURRENT LIABILITIES
228 Accumulated provision for pensions & benefits and injuries & damages 294,234 247,334
------------------------
Total Other Non-current Liabilities 294,234 247,334
------------------------
CURRENT AND ACCRUED LIABILITIES
232 Accounts payable 11,197,393 10,443,709
233 Notes payable to associate companies (Schedule XIII) 6,947,693 14,951,887
234 Accounts payable to associate companies (Schedule XIII) 25,640,279 24,134,183
236 Taxes accrued - 305,564
241 Tax collections payable 3,255 2,082
242 Miscellaneous current and accrued liabilities (Schedule XIII) 26,942 37,426
------------------------
Total Current and Accrued Liabilities 43,815,562 49,874,851
------------------------
DEFERRED CREDITS
253 Other deferred credits 318,473 250,000
------------------------
Total Deferred Credits 318,473 250,000
------------------------
283 Accumulated deferred income taxes - other 195,252 791,983
------------------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $45,623,521 $52,164,168
========================
5 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
For the Year Ended December 31,1998
Schedule II - Service Company Property
<TABLE>
<CAPTION>
Balance at Retirements Other Balance at
Beginning or Changes Close of
Description of Year Additions Sales (1) Year
Service Company Property
Account
<S> <C> <C> <C> <C> <C>
303 Miscellaneous Intangible Plant $1,271,722 $ 103,484 $ - $(18,255) $1,356,951
306 Leasehold Improvements
3,239,633 254,794 - - 3,494,427
307 Equipment (2)
3,956,680 320,436 - 18,255 4,295,371
308 Office Furniture and Equipment
2,290,632 31,555 - - 2,322,187
309 Automobiles, Other Vehicles
and Related Garage Equipment
5,767 - - - 5,767
310 Aircraft and Airport Equipment
489,949 - - - 489,949
SUBTOTAL 11,254,383 710,269 - - 11,964,652
--------------------------------------------------------
107 Construction Work in Progress (3)
636,230 123,355 710,269 - 49,316
--------------------------------------------------------
TOTAL $11,890,613 $ 833,624 $710,269 $ - $ 12,013,968
========================================================
(1) Provide an explanation of those changes considered material:
Adjustments in the "Other Changes" column reclassified property to the equipment
account to more appropriately identify such assets.
(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:
</TABLE>
Balance at
Subaccount Description Additions Close of
Year
307.02 Communications and Dispatch $ - $ 1,597,340
307.03 Data Processing
320,436 2,698,031
----------------------
TOTAL $ 320,436 $ 4,295,371
======================
(3) Describe construction work in progress:
Purchase of office equipment and lease
hold improvements to corporate offices.
6 OF 27 PAGES
<PAGE>
ANNUAL REPORT FOR ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 Retirements (Deduct)(1b) of Year
403 (1a)
Account
<S> <C> <C> <C> <C> <C> <C>
303 Miscellaneous Intangible Plant $ 455,786 $ 177,937 $ - $ 462,354 $ 1,096,077
306 Leasehold Improvements 1,763,967 674,200 - (365,882) 2,072,285
307 Equipment 3,672,362 (181,171) - 11,727 3,502,918
308 Office Furniture and Equipment 2,067,953 14,211 - 150,002 2,232,166
309 Automobiles, Other Vehicles
and Related Garage Equipment 5,959 - - (192) 5,767
310 Aircraft and Airport Equipment 494,581 - - (4,632) 489,949
--------------------------------------------------------------
TOTAL $ 8,460,608 $ 685,177 $ - $ 253,377 $ 9,399,162
==============================================================
(1) Provide an explanation of those changes considered material:
(b) This column includes additions to accumulated depreciation and amortization as well as reclasses
between categories.
(b) This column includes adjustments related to the reversal of depreciation and amortization charged
in excess of the underlying assets' original costs as well as adjustments related to certain
Construction Work in Progress, which had not been closed to plant and depreciated for a number
of months.
7 OF 27 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Schedule IV - Investments
</TABLE>
<TABLE>
<CAPTION>
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 Close of Year
Year
<S> <C> <C>
Account 123 - Investment in Associate Companies $ - $ -
Account 124 - Other Investments - -
Account 136 - Temporary Cash Investments - -
---------------------
TOTAL $ - $ -
=====================
</TABLE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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.
<TABLE>
<CAPTION>
Balance at Balance at
Description Beginning of Year Close of Year
Account 146 - Accounts Receivable from Associate Companies
<S> <C> <C>
Entergy Arkansas, Inc. $ 5,760,336 $ 2,898,650
System Energy Resources, Inc. 24,653,914 21,628,858
Entergy Louisiana, Inc. 2,919,678 2,850,043
Entergy Services, Inc. (460,601) (440)
Entergy Corporation - 74,575
Entergy Gulf States, Inc. 13,559,080 13,031,916
-------------------------------
TOTAL $ 46,432,407 $ 40,483,602
===============================
Total
Payments
-----------
$ -
-----------
TOTAL PAYMENTS $ -
===========
8 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Schedule VI - Fuel Stock Expenses Undistributed
<TABLE>
<CAPTION>
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.
<S> <C> <C> <C>
Description Labor Expenses Total
Account 152 - Fuel Stock Expenses Undistributed $ - $ - $ -
---------------------------
TOTAL $ - $ - $ -
===========================
Summary:
N/A
</TABLE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Schedule VII - Stores Expense Undistributed
<TABLE>
<CAPTION>
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.
<S> <C> <C> <C>
Description Labor Expenses Total
Account 163 - Stores Expense Undistributed $ - $ - $ -
--------------------------
TOTAL $ - $ - $ -
==========================
9 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 of Close of
Year Year
Account 174 -
Miscellaneous Current and Accrued Assets
Unbilled Jobbing Orders $ 48,249 $ 46,999
Tax refunds receivable
- 288,146
Other 94,132 -
----------------------
TOTAL $142,381 $335,145
======================
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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
Long Term Incentive Plan $ 909,000 $174,054
Other 352,936 445,951
Accounts Receivable Miscellaneous Vouchers 172,451 -
----------------------
TOTAL $1,434,387 $620,005
======================
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 $ - $ -
=======================
10 OF 27 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Schedule XI - Proprietary Capital
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Number of Shares Par or Stated Outstanding Close of Period
Account Number Class of Stock Authorized Value Per Share No. of Shares Total Amount
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.
<TABLE>
<CAPTION>
Balance at Net Income Dividends Balance at
Beginning of -or (loss) Paid Close of Year
Description Year
<S> <C> <C> <C> <C>
Account 216 -
Unappropriated Retained Earnings $- $- $- $-
-------------------------------------------------
TOTAL $- $- $- $-
=================================================
11 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Schedule XII - Long-Term Debt
<TABLE>
<CAPTION>
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.
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Terms of Balance Balance
Obligation at at
Class & Series Date of Interest Amount Beginning Close
Name of Creditor of Obligation Maturity Rate Authorized of Year Additions Deductions(1) of Year
Account 223 - Advances from
Associate Companies: $ - $ - $ - $ - $ -
Account 224 -
Other Long-Term Debt: - - - - -
-----------------------------------------------------
TOTAL $ - $ - $ - $ - $ -
=====================================================
(1) Give an explanation of Deductions:
N/A
12 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ending December 31, 1998
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 of Close of Year
Year
Account 233 -
Notes Payable to Associate Companies $ 14,951,887 $ 6,947,693
---------------------------
TOTAL $ 14,951,887 $ 6,947,693
===========================
Account 234 -
Accounts Payable to Associate Companies
Entergy Arkansas, Inc. $ 2,779,933 $ 2,226,421
System Energy Resources, Inc. 11,582,537 11,687,294
Entergy Louisiana, Inc. 7,175,451 8,070,306
Entergy Services, Inc. 2,065 18,320
Money Pool Interest Payable 31,575 81,347
Entergy Gulf States, Inc. 2,562,622 3,556,591
--------------------------
TOTAL $24,134,183 $ 25,640,279
==========================
Account 242 -
Miscellaneous Current and Accrued
Liabilities Other - External Director
Stock Plan $ 37,426 $ 26,942
-------------------------
TOTAL $ 37,426 $ 26,942
=========================
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 13 ( 2 ) through 13 ( 8 )
13 OF 27 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 basis and tax basis of assets, liabilities, and loss
carryforwards. Temporary differences are recorded based on enacted tax
laws at tax rates that are expected to be in effect when the temporary
differences reverse.
13 OF 27 (2)
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 tax assets (liabilities) are comprised of the
following at December 31, 1998 and 1997:
1998 1997
Deferred Tax Assets:
Excess capital loss $402,968 $402,968
Deferred compensation 593,421 -
Depreciation 305,895 71,676
Operating reserves - 18,375
------------------------
Total $ 1,302,284 $493,019
========================
Deferred Tax Liabilities:
Injuries and damages reserves (164,536) (164,536)
Pension and benefits (OPEB) reserves (16,890) (34,829)
Operating reserves (13,826) -
Deferred compensation - (592,618)
------------------------
Total (195,252) (791,983)
========================
Net deferred tax assets /
liabilities $1,107,032 $(298,964)
========================
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.
13 OF 27 (3)
Entergy Operations' effective income tax rate was 100% in 1998
and 1997 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
1998 and 1997 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, 1998 and 1997 consisted of the following:
1998 1997
Current:
Federal $1,392,898 $(774,665)
State 218,097 (112,172)
-------------------------
Total 1,610,995 (886,837)
=========================
Deferred:
Federal (1,222,206) 1,004,473
State (183,789) 151,051
-------------------------
Total (1,405,995) 1,155,524
=========================
Total income tax expense $ 205,000 $ 268,687
=========================
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 of up to $20 million through a borrowing arrangement
with interest rates based on a prime rate. This borrowing arrangement
was not used during 1998 and 1997.
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 1998 and 1997 were as follows (dollars in thousands):
1998 1997
Average borrowing $12,827 $16,054
Maximum borrowing at month end $18,653 $19,511
Average effective interest rate during the year 5.7% 5.6%
Average effective interest rate at end of year 5.8% 6.3%
13 OF 27 (4)
NOTE 4. OPERATING LEASES
Total rent expense for 1998 and 1997 was $10.0 million and $7.2
million, respectively. As of December 31, 1998, Entergy Operations
had non-cancelable operating leases with future minimum rental
commitments on building space as follows (in thousands):
Minimum
lease payments
1999 $ 2,962
2000 3,004
2001 2,832
2002 2,848
2003 2,865
Years Thereafter 4,772
--------
Total $ 19,283
========
NOTE 5. EMPLOYEE BENEFITS
Employee Benefit Plans
Certain key employees of Entergy Operations participate in the
Equity Ownership Plan of Entergy Corporation and Subsidiaries (Equity
Plan). The Equity Plan grants stock options, equity awards, and
incentive awards to key employees. The costs of equity and incentive
awards are charged to income over the period of the grant or
restricted period, as appropriate. Amounts charged to compensation
expense were $358,000 and $202,000 in 1998 and 1997, respectively. As
of December 31, 1998, there were shares with a cost of $174,000
included in Other Deferred Debits for Entergy Corporation common stock
purchased related to the Equity Plan.
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. Effective
December 31, 1997, the Employee Stock Ownership Plan of Entergy
Corporation and Subsidiaries (Entergy ESOP) and the Gulf States
Utilities Company Employees' Thrift Plan were merged into the Savings
Plan. Effective December 31, 1998, the Gulf States Utilities Company
Employee Stock ownership Plan was also merged into the Savings Plan
due to the utilization of all available tax credits. Subsequent to
these mergers, the Savings Plan constitutes two plans: a Profit
Sharing Plan and an Employee Stock Ownership Plan. The Savings Plan
is a defined contribution plan covering eligible employees of Entergy
and its subsidiaries who have completed certain service requirements.
Entergy's subsidiaries' contributions to the Profit Sharing Plan and
voluntary participant contributions to the ESOP, and any income
thereon, are invested in shares of Entergy Corporation common stock.
The Profit Sharing Plan provides that the employing Entergy
subsidiary may make matching contributions to the plan in an amount
equal to 50% of the participant's basic contribution, up to 6% of
their salary, in shares of Entergy Corporation common stock. Entergy
Operations contributed $4.8 million in 1998 and $4.5 million in 1997
to the Profit Sharing Plan.
13 OF 27 (5)
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.
In 1998 prior to the merger of the GSU ESOP into the Savings Plan,
Entergy Gulf States contributed $7.7 million based on the remaining
unutilized investment tax credits. There were no contributions to the
GSU ESOP in 1997. No additional investment tax credits are available
for contribution under the GSU ESOP or the Entergy ESOP. Therefore,
management does not expect to make any future contributions to the
Employee Stock Ownership Plan within the Savings Plan.
Retirement and Other 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.
Eligible employees of Entergy Operations participate in the
Entergy Corporation retirement plans. Entergy Corporation has two
retirement benefit plans, "Entergy Corporation Retirement Plan for Non-
Bargaining Employees" and "Entergy Corporation Retirement Plan for
Bargaining Employees", covering substantially all of its domestic
employees. 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 and its subsidiaries 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 plans include common and
preferred stocks, fixed income securities, interest in a money market
fund, and insurance contracts.
The pension and other postretirement obligations of Grand Gulf 1
and Entergy Operations headquarters' employees are reflected in the
financial statements of Entergy Operations.
Total 1998 and 1997 pension and other postretirement costs for
Entergy Operations - Grand Gulf 1 and headquarters' employees,
including capitalized amounts, included the following components (in
thousands):
<TABLE>
<CAPTION>
Other
Postretirement
Pension Benefits
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Service cost $ 2,494 $ 2,389 $ 871 $ 939
Interest cost 3,265 2,942 652 648
Expected return on assets (3,979) (3,480) (446) (214)
Amortization of transition asset (597) (597) 262 262
Amortization of prior service cost 80 80 - -
Recognized net (gain)/loss - - (79) -
--------------------------------------------
Net pension cost $ 1,263 $ 1,334 $ 1,260 $ 1,635
============================================
</TABLE>
<PAGE>
13 OF 27 (6)
<TABLE>
<CAPTION>
Other
Postretirement
Pension Benefits
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Change in the Projected Benefit
Obligation (PBO)/Accumulated
Postretirement Obligation (APBO)
Balance at beginning of year $ 46,433 $ 38,401 $ 10,464 $ 7,849
Service cost 2,494 2,389 871 939
Interest Cost 3,265 2,942 652 648
Actuarial (gain)/loss 4,005 3,302 (573) 1,225
Benefits paid (658) (601) (346) (197)
---------------------------------------------
Balance at end of year $ 55,539 $ 46,433 $ 11,068 $ 10,464
=============================================
Change in Plan Assets
Fair value of assets at beginning of year $ 52,539 $ 43,824 $ 4,835 $ 2,289
Actual return on plan assets 8,440 9,044 721 511
Employer contributions 211 272 1,947 2,232
Benefits paid (658) (601) (347) (197)
---------------------------------------------
Fair value of assets at end of year $ 60,532 $ 52,539 $ 7,156 $ 4,835
=============================================
Funded status $ 4,993 $ 6,106 $ (3,912) $ (5,629)
Unrecognized transition (asset)/obligation (4,097) (4,694) 3,670 3,932
Unrecognized prior service cost 941 1,021 - -
Unrecognized net (gain)/loss (7,100) (6,645) (1,327) (559)
---------------------------------------------
Prepaid/(accrued) pension cost $ (5,263) $ (4,212) $ (1,569) $ (2,256)
=============================================
</TABLE>
The significant assumptions used in computing the pension and
other postretirement information above were as follows:
1998 1997
Weighted-average discount rate 6.75% 7.25%
Weighted-average rate of increase in future compensation levels 4.6% 4.6%
Expected long-term rate of return on plan assets 9.0% 9.0%
The pension transition asset is being amortized over the greater
of the remaining service period or 15 years. The other postretirement
benefits transition obligation is being amortized over 20 years.
The assumed health care cost trend rate used in measuring the
other postretirement benefits' APBO was 6.0% for 1999, gradually
decreasing each successive year until it reaches 5.0% in 2006. A one
percentage-point increase in the assumed health care cost trend rate
for 1998 would have increased the APBO by $1,248,000 and increased the
sum of the service cost and interest cost by $250,000. A one
percentage-point decrease in the assumed health care cost trend rate
for 1998 would have decreased the APBO by $1,025,000 and increased the
sum of the service cost and interest cost by $201,000.
<PAGE>
13 OF 27 (7)
NOTE 6. TRANSACTIONS WITH AFFILIATES
Entergy Operations has been authorized, pursuant to certain
operating agreements, to act as an agent for the Companies in the
operation, 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. In 1998 and 1997, Entergy Operations was paid or
reimbursed a total of $469.5 million and $423.6 million, respectively
from ANO, River Bend, Waterford, and Grand Gulf 1 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 $46.9 million in 1998 and $46.5 million in 1997
with the Companies reimbursing Entergy Operations for their respective
portions.
13 OF 27 (8)
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Schedule XV - Comparative Income Statements
<TABLE>
<CAPTION>
Account Description Current Year Prior Year
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies $666,573,160 $700,419,098
458 Services rendered to nonassociate companies
- -
---------------------------
TOTAL INCOME 666,573,160 700,419,098
===========================
EXPENSES - Income Statement
500-557 Power production 415,498,562 471,761,330
560-598 Transmission and distribution expenses 18,434 37,069
901-905 Customer accounts (45) -
906-917 Customer service and information 295 -
920 Salaries and wages 19,460,407 21,216,508
921 Office supplies and expenses 4,472,270 5,758,704
923 Outside services employed 11,071,252 15,336,913
924 Property insurance (1,772,138) 184,469
925 Injuries and damages 3,509,993 3,193,125
926 Employee pensions and benefits 22,162,864 20,257,555
928 Regulatory commission expenses 514,460 611,691
930.1 General advertising expenses 111,616 85,617
930.2 Miscellaneous general expenses 2,758,652 3,405,991
931 Rents 10,019,416 7,150,725
935 Maintenance of general plant 1,606,939 265,735
403-404 Depreciation and amortization expense 685,177 1,395,027
408 Taxes other than income taxes 17,664,435 16,055,563
409 Income taxes (benefits) 1,610,995 (886,837)
410-411 Provision for deferred income taxes (1,405,995) 1,155,524
421 Miscellaneous nonoperating income (154,889) (22,887)
426.1 Donations 200,465 158,503
426.3 Penalties 6,170 56
426.4 Civic, political, and related activities 10,754 (905)
426.5 Other deductions 41,555 170,735
430 Interest on debt to associate companies 747,598 838,112
---------------------------
TOTAL EXPENSES - Income 508,839,242 568,128,323
Statement ===========================
EXPENSES - Balance Sheet
107EXP Construction work in progress 149,315,171 109,788,304
154EXP General inventory 8,436,156 26,118,270
163EXP Stores expense undistributed (214,468) (3,761,856)
165EXP Prepaid expense (3,538,924) (676,654)
174EXP Miscellaneous current and accrued expense 62,534 123,269
184EXP Other expenses 3,673,449 699,442
---------------------------
TOTAL EXPENSES - Balance Sheet 157,733,918 132,290,775
===========================
---------------------------
NET INCOME (LOSS) $ - $ -
===========================
14 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Analysis of Billing - Associate Companies - Account 457
<TABLE>
<CAPTION>
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 $247,492,888 $5,802,227 $ - $253,295,115
Waterford 3 Nuclear Station 130,557,809 5,212,324 - 135,770,133
Grand Gulf Nuclear Station (1) 143,470,114 5,260,721 - 148,730,835
River Bend Nuclear Station 123,505,163 5,271,914 - 128,777,077
---------------------------------------------------
TOTAL $645,025,974 $21,547,186 $ - $666,573,160
===================================================
(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 there allocated
costs.
15 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Analysis of Billing - Nonassociate Companies - Account 458
<TABLE>
<CAPTION>
Instruction:
Provide a brief description of the services rendered to each nonassociate company:
<S> <C> <C> <C> <C> <C> <C>
Direct Indirect Compensation Excess Total
Cost Cost For Use Total Or Amount
Name of Nonassociate Company Charged Charged of Capital Cost Deficiency Billed
458-1 458-2 458-3 458-4
$ - $ - $ - $ - $ - $ -
-----------------------------------------------------------------
TOTAL $ - $ - $ - $ - $ - $ -
=================================================================
16 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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.
<TABLE>
CAPTION>
Associate Company Charges Nonassociate Total Charges for Service
Company Charges
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>
500-557 Power production $411,167,899 $4,330,663 $415,498,562 $411,167,899 $4,330,663 $415,498,562
560-598 Transmission and 18,434 18,434 18,434 - 18,434
distribution expenses -
901-905 Customer accounts (45) (45) (45) - (45)
-
906-917 Customer service and 295 295 295 - 295
information -
920 Salaries & wages 16,587,496 2,872,911 19,460,407 16,587,496 2,872,911 19,460,407
921 Office supplies and 3,606,066 866,204 4,472,270 3,606,066 866,204 4,472,270
expenses
923 Outside services employed 10,116,477 954,775 11,071,252 10,116,477 954,775 11,071,252
924 Property insurance (1,762,844) (9,294) (1,772,138) (1,762,844) (9,294) (1,772,138)
925 Injuries and damages 3,243,530 266,463 3,509,993 3,243,530 266,463 3,509,993
926 Employee pensions and 14,877,447 7,285,417 22,162,864 14,877,447 7,285,417 22,162,864
benefits
928 Regulatory commission 474,730 39,730 514,460 474,730 39,730 514,460
expenses
930.1 General advertising 95,098 16,518 111,616 95,098 16,518 111,616
expenses
930.2 Miscellaneous general 2,359,987 398,665 2,758,652 2,359,987 398,665 2,758,652
expenses
931 Rents 8,631,367 1,388,049 10,019,416 8,631,367 1,388,049 10,019,416
935 Maintenance of general 1,592,283 14,656 1,606,939 1,592,283 14,656 1,606,939
plant
403-404 Depreciation and 685,177 685,177 - 685,177 685,177
amortization expense -
408 Taxes other than income 17,386,404 278,031 17,664,435 17,386,404 278,031 17,664,435
taxes
409 Income taxes (benefits) - 1,610,995 1,610,995 - 1,610,995 1,610,995
410-411 Provision for deferred - (1,405,995) (1,405,995) - (1,405,995) (1,405,995)
income taxes
421 Miscellaneous nonoperating (154,889) - (154,889) (154,889) - (154,889)
income -
426.1 Donations 33,308 167,157 200,465 33,308 167,157 200,465
426.3 Penalties 6,170 - 6,170 6,170 - 6,170
426.4 Civic, political, and 8 10,746 10,754 8 10,746 10,754
related activities
426.5 Other deductions 16,327 25,228 41,555 16,327 25,228 41,555
107EXP Construction work in 149,315,171 - 149,315,171 149,315,171 - 149,315,171
progress
154EXP General inventory 8,436,156 - 8,436,156 8,436,156 - 8,436,156
163EXP Stores expenses (1,155,808) 941,340 (214,468) (1,155,808) 941,340 (214,468)
undistributed
165EXP Prepaid expense (3,538,924) - (3,538,924) (3,538,924) - (3,538,924)
174EXP Miscellaneous current and 62,534 - 62,534 62,534 - 62,534
accrued expense
184EXP Other expenses 3,611,297 62,152 3,673,449 3,611,297 62,152 3,673,449
-------------------------------------------------------------------------------------------------
TOTAL EXPENSES 645,025,974 20,799,588 665,825,562 645,025,974 20,799,588 665,825,562
Compensation for use of
Equity Capital
430
Interest on debt to - 747,598 747,598
associate companies - 747,598 747,598
--------------------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $645,025,974 $21,547,186 $666,573,160 $645,025,974 $21,547,186 $666,573,160
==================================================================================================
17 OF 28 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 $415,498,562 $411,167,899 $138,585,728 $102,214,212 $89,930,939 $80,437,020
560-598 Transmission and distribution expenses 18,434 18,434 4,663 4,604 4,559 4,608
901-905 Customer accounts (45) (45) (12) (11) (11) (11)
906-917 Customer service and information 295 295 96 65 65 69
920 Salaries & wages 19,460,407 16,587,496 4,348,204 4,221,955 3,942,297 4,075,040
921 Office supplies and expenses 4,472,270 3,606,066 934,181 930,401 881,684 859,800
923 Outside services employed 11,071,252 10,116,477 2,610,317 2,592,999 2,260,124 2,653,037
924 Property insurance (1,772,138) (1,762,844) 28,890 (1,849,147) 28,696 28,717
925 Injuries and damages 3,509,993 3,243,530 986,991 993,436 632,544 630,559
926 Employee pensions and benefits 22,162,864 14,877,447 3,845,446 2,124,410 3,010,174 5,897,417
928 Regulatory commission expenses 514,460 474,730 213,062 249,025 24 12,619
930.1 General advertising expenses 111,616 95,098 20,182 25,210 23,388 26,318
930.2 Miscellaneous general expenses 2,758,652 2,359,987 847,170 801,077 553,751 157,989
931 Rents 10,019,416 8,631,367 3,754,153 875,308 860,576 3,141,330
935 Maintenance of general plant 1,606,939 1,592,283 337,699 423,099 325,711 505,774
403-404 Depreciation and amortization expense 685,177
408 Taxes other than income taxes 17,664,435 17,386,404 6,117,860 3,933,414 3,830,859 3,504,271
409 Income taxes (benefits) 1,610,995
410-411 Provision for deferred income taxes (1,405,995)
421 Miscellaneous nonoperating income (154,889) (154,889) (133,586) (7,101) (7,101) (7,101)
426.1 Donations 200,465 33,308 8,591 12,143 5,543 7,031
426.3 Penalties 6,170 6,170 1,547 1,541 1,541 1,541
426.4 Civic, political, and related activities 10,754 8 2 2 2 2
426.5 Other deductions 41,555 16,327 13,368 12,631 13,051 (22,723)
430 Interest on debt to associate companies 747,598
107EXP Construction work in progress 149,315,171 149,315,171 75,423,484 30,402,434 24,671,060 18,818,193
154EXP General inventory 8,436,156 8,436,156 8,246,659 (506,417) 1,107,237 (411,323)
163EXP Stores expenses undistributed (214,468) (1,155,808) (169,975) (1,235,236) (2,230,298) 2,479,701
165EXP Prepaid expense (3,538,924) (3,538,924) (12,685) (3,500,893) (12,673) (12,673)
174EXP Miscellaneous current and accrued expense 62,534 62,534 17,519 7,230 6,267 31,518
184EXP Other expenses 3,673,449 3,611,297 1,463,335 743,723 717,800 686,439
----------------------------------------------------------------------------------
TOTAL EXPENSES $666,573,160 $645,025,974 $247,492,889 $143,470,114 $130,557,809 $123,505,162
==================================================================================
18 OF 27 PAGES
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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>
500-557 Power production $4,330,663 $1,460,218 $967,316 $936,953 $966,176
920 Salaries & wages 2,872,911 755,742 711,626 702,711 702,832
921 Office supplies and expenses 866,204 241,824 209,458 207,451 207,471
923 Outside services employed 954,775 239,939 238,325 238,244 238,267
924 Property insurance (9,294) (2,322) (2,324) (2,324) (2,324)
925 Injuries and damages 266,463 54,829 70,545 70,544 70,545
926 Employee pensions and benefits 7,285,417 1,858,774 1,810,963 1,807,674 1,808,006
928 Regulatory commission expenses 39,730 300 5,290 34,140
-
930.1 General advertising expenses 16,518 13,089 1,163 1,128 1,138
930.2 Miscellaneous general expenses 398,665 35,907 120,920 120,918 120,920
931 Rents 1,388,049 357,659 343,123 342,511 344,756
935 Maintenance of general plant 14,656 3,666 3,663 3,663 3,664
403-404 Depreciation and amortization 685,177 171,343 171,278 171,278 171,278
expense
408 Taxes other than income taxes 278,031 53,038 72,186 77,012 75,795
409 Income taxes (benefits) 1,610,995 402,828 402,749 402,709 402,709
410-411 Provision for deferred income (1,405,995) (351,569) (351,496) (351,465) (351,465)
taxes
426.1 Donations 167,157 41,790 41,789 41,789 41,789
426.4 Civic, political, and related 10,746 2,685 2,687 2,687 2,687
activities
426.5 Other deductions 25,228 6,307 6,307 6,307 6,307
430 Interest on debt to associate 747,598 186,901 186,899 186,899 186,899
companies
163EXP Stores expenses undistributed 941,340 257,070 228,019 228,136 228,115
184EXP Other expenses 62,152 12,209 25,525 12,209 12,209
----------------------------------------------------------------
TOTAL EXPENSES $21,547,186 $5,802,227 $5,260,721 $5,212,324 $5,271,914
================================================================
19 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Departmental Analysis of Salaries
<TABLE>
<CAPTION>
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> <C>
Directs - Arkansas Nuclear One $85,918,356 $85,918,356 1,179
Directs - River Bend Nuclear Station 52,155,925 52,155,925 757
Directs - Grand Gulf Nuclear Station (1) 57,103,645 57,103,645 797
Directs - Waterford 3 Nuclear Station 53,706,476 53,706,476 764
Indirects - Arkansas Nuclear One 3,371,168 3,371,168 29
Indirects - River Bend Nuclear Station 2,607,289 2,607,289 18
Indirects - Grand Gulf Nuclear Station (1) 2,689,972 2,689,972 19
Indirects - Waterford 3 Nuclear Station 2,650,641 2,650,641 18
---------------------------------------------------------------
TOTAL $260,203,472 $260,203,472 3,581
===============================================================
(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.
</TABLE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 20 (2) through 20 (8)
20 OF 27 PAGES (1)
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year ended December 31, 1998
Outside Services Employed
<TABLE>
<CAPTION>
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 - Engineering
ABB COMBUSTION ENGINEERING INC NA $2,767,308
ABB POWER T&D CO INC NA 250,676
AURA ENERGY CORP NA 2,574,793
BARNHART CRANE & RIGGING INC NA 1,013,725
BCP TECHNICAL SERVICES INC NA 3,401,131
BECHTEL POWER CORP NA 3,508,814
BECHTEL SOFTWARE INC NA 97,549
BENSINGER DUPONT & ASSOC NA 81,453
BWIP INTL INC NA 31,138
BWIP INTL PUMP DIVISION NA 66,307
CETROM CONSULTING ENGINEERING INC NA 78,449
CHEM NUCLEAR SYSTEMS LLC NA 1,094,413
CSI BURKHALTER RIGGING NA 67,843
DOMINION ENGINEERING INC NA 333,927
DP ENGINEERING NA 536,527
DUKE ENGINEERING & SERVICES NA 2,973,733
ERIN ENGINEERING & RESEARCH INC NA 253,213
FRAMATOME TECHNOLOGIES INC NA 13,549,064
GENERAL ELECTRIC NA 955,910
GENERAL ELECTRIC NUCLEAR ENERGY NA 912,639
HOLTEC INTL NA 1,668,987
IEPSON CONSULTING ENGINEERS INC NA 441,240
KALSI ENGINEERING INC NA 125,766
KEYSTONE ENGINEERING INC NA 106,292
MDM ENGINEERING CORP NA 101,348
MECHANICAL DYNAMICS & ANALYSIS INC NA 183,101
NAI ENGINEERING SERVICES NA 78,521
NTS TECHNICAL SERVICES INC NA 1,053,432
OMEGA TECHNICAL SERVICES INC NA 71,153
ONSITE ENGINEERING & MGMT INC NA 119,521
OTHER ENGINEERING SERVICES <$25,000 (16) NA 117,244
RAYTHEON ENGINEERS & CONSTRUCTORS INC NA 2,853,289
RAYTHEON NUCLEAR INC NA 3,204,437
SARGENT & LUNDY LLC NA 1,816,581
SCIENCE APPLICATIONS INTL CORP NA 287,472
SIEMENS POWER CORP NA 10,793,639
SIERRA NUCLEAR CORP NA 26,997
STONE & WEBSTER ENGINEERING CORP NA 17,954,041
STRUCTURAL INTEGRITY ASSOC NA 283,445
TELEDYNE BROWN ENGINEERING NA 34,610
THERMAL ENGINEERING INTL NA 9,892,025
VOLT TECHNICAL SERVICES NA 70,777
WESTINGHOUSE ELECTRIC CORP NA 31,359,237
ZEMAN SALES & ENGINEERING CO NA 52,023
-----------
Subtotal 117,243,790
-----------
Outside Services - Management Consultants
ANDERSON ENGINEERING CONSULTANTS INC NA 31,811
ATLANTIC GROUP INC NA 1,058,048
C&A CONSULTING SERVICES NA 67,877
C&E CONSULTING SERVICES NA 27,456
CALGON CORP NA 1,625,039
COMMUNICATIONS SPECIALISTS INC NA 69,114
DIALOGIC COMMUNICATIONS CORP NA 44,136
DIVERSIFIED TECHNOLOGY SERVICE INC NA 329,586
ENERCON SERVICES INC NA 3,056,383
ENERGY SYSTEMS SOLUTIONS INC NA 51,250
GALLE CONSULTING SERVICES NA 59,898
GD BARRI & ASSOC INC NA 291,353
HURST TECHNOLOGIES NA 268,879
INDEPENDENT CONSULTANT SERVICES INC NA 162,286
INNOVATIVE SOLUTIONS INC NA 156,486
JANUS MANAGEMENT ASSOC INC NA 83,841
LIBERTY TECHNOLOGIES NA 46,974
MERIT CONSULTANTS INC NA 29,800
MOLTEN METAL TECHNOLOGIES INC NA 3,305,733
NILSSON PROFESSIONAL CONSULTING NA 291,606
NUCLEAR ADVISORY GROUP INC NA 56,637
NUCLEAR ENERGY INSTITUTE NA 107,379
NUCLEAR LOGISTICS INC NA 77,045
NWS TECHNOLOGIES NA 130,427
OTHER MGT CONSULTING SERVICES <$25,000 (26) NA 240,664
PERFORMANCE IMPROVEMENT INTL NA 499,926
PERFORMANCE TECHNOLOGY NA 35,805
RADIATION PROTECTION SERVICES INC NA 216,000
SPEC GROUP HOLDINGS INC NA 1,112,682
TODAYS OFFICE NA 52,069
VERTECHS SOFTWARE SOLUTIONS NA 99,189
WILLIAMS COMMUNICATIONS SOLUTIONS NA 84,898
WOODWARD CLYDE CONSULTANTS NA 40,739
----------
Subtotal 13,811,016
----------
Outside Services - Other
AAP STAFF SERVICES INC NA 46,040
ACCESS FLOOR SYSTEMS INC NA 27,517
ADVANCED MANAGEMENT SYSTEMS NA 36,723
AIR PRODUCTS & CHEMICALS INC NA 26,595
AIR PRODUCTS AND CHEMICALS INC NA 123,252
ALLIED TECHNOLOGY GROUP NA 106,513
ALTRIS SOFTWARE INC NA 74,475
AM PM TEMPORARY SERVICES INC NA 92,541
AMERICAN CONTRACTORS & LABOR SERVICES INC NA 86,376
AMERICAN EXPRESS NA 30,584
AMERICAN TECHNICAL SERVICES NA 740,623
AMERON PROTECTIVE COATINGS NA 97,103
ANALYTICS INC NA 40,498
ANATEC INTL INC NA 1,470,554
ANBEROKA SERVICES NA 63,432
APAC MISSISSIPPI INC NA 63,475
AR DEPT OF FINANCE & ADMIN ISTRATION NA 920,578
AR TECH UNIVERSITY NA 28,730
ARKWRIGHT MUTUAL INSURANCE CO NA 324,399
AZ PUBLIC SERVICE CO NA 29,180
BAILEY CONTROLS CO CORP NA 129,029
BALL MECHANICAL SERVICE INC NA 80,421
BARRON SERVICES NA 66,429
BECHTEL SOFTWARE INC NA 43,008
BNFL INSTRUMENTS INC NA 48,123
BOH BROS CONSTRUCTION CO LLC NA 130,634
BROWN CUNNINGHAM & GANNUCH NA 84,604
BROWNING FERRIS INDUSTRIES INC NA 64,222
CAIN INDUSTRIAL SERVICES NA 599,322
CALDON INC NA 63,304
CANBERRA INDUSTRIAL INC NA 444,502
CARBON STEEL INSPECTION INC NA 79,750
CAREER CHECK INC NA 29,618
CASE MATE INC NA 182,642
CATARACT INC NA 341,101
CENTRAL INTERSTATE LOW LEVEL RADWASTE COMPACT COMMISSION NA 187,000
CETROM ARCHITECTS & ENGINEERS NA 33,488
CHAR SERVICES INC NA 27,841
CHELAN INC NA 67,770
CHOICEPOINT SERVICES INC NA 179,232
CHUCK WHITE & ASSOC INC NA 69,824
CLEVELAND ELECTRIC CO OF AR NA 37,275
COMPUTER ASSOC INTL INC NA 33,946
CONSUMERS ENERGY NA 127,335
CONTINENTAL TRAFFIC SERVICE INC NA 31,347
CONTROL COMPONENTS INC NA 28,650
CONTROL TECHNOLOGIES INC NA 120,326
COOPER CAMERON CORP NA 66,331
COOPER CAMERON VALVES NA 194,091
COOPERHEAT INC NA 81,122
CORROSION SERVICES INC NA 88,885
DATA PORT INC NA 90,430
DATAPLEX CORP NA 40,266
DEFENDER SERVICES INC NA 523,182
DEPENDABLE A/C CO INC NA 55,302
DEPT OF EMERGENCY MGMT EAST BATON ROUGE PARISH NA 35,000
DIGITAL EQUIPMENT CORP NA 59,541
DONALD C SHELTON NA 56,460
DOVER ELEVATOR CO NA 70,730
DRYADES SAVINGS BANK NA 59,130
EASTERN TECHNOLOGIES INC NA 88,974
ECOLOCHEM INC NA 37,483
EMERALD COAST SERVICES INC NA 199,864
ENTERGY SERVICES INC A 44,472,897
ENVIROSOLVE SOUTHWEST INC NA 74,304
EPRI NA 662,625
EXCEL SERVICES CORP NA 234,543
EXPRESS PERSONNEL SERVICES INC NA 383,275
EYELINE OPTICAL NA 51,807
FEDERAL EMERGENCY MANAGEMENT INC NA 507,091
FISCAL SERVICES DIVISION NA 315,177
FISHER SCIENTIFIC CO NA 56,417
FRANK W HAKE ASSOC NA 408,706
FRU CON TECHNICAL SERVICES INC NA 27,765
FUELMAN OF MS CORP NA 74,981
FUELMAN OF NEW ORLEANS CORP NA 52,662
FURMANITE AMERICA INC NA 172,581
GAMMA METRICS INC NA 33,932
GARDEN & PET CENTER NA 55,055
GDS ASSOC INC NA 151,299
GENERAL PHYSICS CORP NA 108,331
GMW MAINTENANCE INC NA 93,686
GRAY HILSMAN MD PA LUCY COOPER NA 52,764
GREENBRIAR DIGGING SERVICE LP NA 816,902
GSE POWER SYSTEMS NA 175,175
GSE SYSTEMS INC NA 25,667
GTS DURATEK BEAR CREEK INC NA 803,501
H BROWN MACHINE SHOP INC NA 272,316
HBS&S NA 39,955
HENDERSON SPECIALITIES INC NA 160,066
HEWLETT PACKARD CO INC NA 25,769
HI POINT INC NA 92,212
HI TECH SERVICES INC NA 163,178
HINDS COMMUNITY COLLEGE RCU FOR ECONOMIC DEV NA 40,315
HJ MERRIHUE INC NA 75,453
HONEYWELL INC NA 205,465
HUGG & HALL EQUIPMENT NA 34,035
HYDROCHEM INDUSTRIAL SERVICES INC NA 65,462
HYTORC CORP DIV UNEX CORP NA 37,807
I POWER DISTRIBUTION GROUP NA 305,042
INDUSTRIAL EQUIPMENT & VEHICLE MAINTENANCE NA 29,301
INDUSTRIAL LEAK DETECTION ILD NA 68,338
INDUSTRIAL MEDICAL CENTER NA 49,047
INFORMATION HANDLING SERVICES INC NA 141,768
INGERSOLL DRESSER PUMP CO INC NA 29,354
INSTITUTE OF NUCLEAR POWER OPERATIONS INPO INC NA 227,954
INSULATIONS INC NA 369,048
INTECH INC NA 199,342
INTEGRA SERVICES TECHNOLOGY INC NA 71,095
IONICS INC NA 1,095,916
JE MERIT CONSTRUCTORS INC NA 94,503
JOHN M MONTGOMERY NA 30,332
JOHNSTON PUMP CO NA 63,081
JULIUS A PAYNE CO INC NA 65,953
KALY NUCLEAR SERVICES NA 159,280
KINDRICK TRUCKING CO INC NA 54,581
KOS INC NA 97,125
LA DEPT OF ENVIRONMENTAL QUALITY NA 89,120
LA LANDSCAPING MAINTENANCE CO INC NA 37,250
LA LIFT & EQUIPMENT NA 39,548
LA OFFICE OF EMERGENCY PREPAREDNESS NA 51,750
LAFAYETTE WESTERN SIZZLIN OPERATIONS INC NA 53,870
LANIER WORLDWIDE INC NA 27,534
LECTRODRYER NA 115,758
LEROY DANOS MAINTENANCE SERVICES NA 100,570
LOVEJOY CONTROLS CORP NA 196,735
LSU FIREMEN TRAINING PROGRAM NA 50,223
M DIRK ORY MD APMC NA 98,550
MEASUREMENTS INC NA 38,884
MGP INSTRUMENTS INC NA 68,183
MILITARY DEPT STATE OF LA NA 25,875
MONTGOMERY KONE INC NA 97,927
MPR ASSOC NA 186,944
MS EMERGENCY MANAGEMENT AGENCY NA 246,100
MS ENTERPRISE FOR TECHNOLOGY NA 287,271
MS IMPRESSION PRODUCTS INC NA 63,656
NC STATE UNIVERSITY NA 50,000
NCS CORP NA 81,276
NEXUS TECHNICAL SERVICES CORP NA 144,484
NORSTAN COMMUNICATIONS INC NA 74,207
NORTH AMERICAN CONTRACT EMP SERVICES NA 615,529
NORTH AMERICAN POWER RESOURCES NA 148,328
NUENERGY INC NA 156,375
NUKEM INC NA 143,371
NUMANCO LLC NA 2,127,391
NWT MFG CORP NA 38,057
OCHSNER CLINIC NA 93,031
OEM INC NA 340,779
OTHER SERVICES <$25,000 (714) NA 3,432,599
OSI SOFTWARE INC NA 140,369
OUR LADY OF THE LAKE REGIONAL MEDICAL CENTER NA 105,971
OVERLY MFG CO NA 26,765
PANASONIC INDUSTRIAL CO NA 25,942
PAR SYSTEMS INC NA 43,518
PARSONS POWER GROUP NA 184,397
PDMA CORP NA 51,506
PHILLIP PLATO INC NA 26,321
PINKERTON SECURITY & INVESTIGATION SERVICES CORP NA 53,867
PLANT MACHINE WORKS INC NA 84,863
PLASTOCOR INC NA 137,325
PN SERVICES INC NA 296,663
POOLED EQUIPMENT INVENTORY CO PEIC NA 85,515
POWER EQUIPMENT MAINTENANCE IN NA 561,582
POWER LOGIC INC NA 43,688
PRECISE FINISHING SYSTEMS NA 151,625
PROFESSIONAL BUILDING SERVICE NA 477,848
QUEST DIAGNOSTICS NA 28,423
RHODIA INC NA 163,715
RHONE POULENC BASIC CHEMICAL NA 157,892
RHR INTERNATIONAL CO NA 60,236
RIVER PARISH DISPOSAL INC NA 82,102
RIVER PARISH MAINTENANCE NA 1,196,216
RIVER REGION MEDICAL CORP NA 161,518
RNI TECHNOLOGIES NA 209,978
ROCKBESTOS CO INC NA 80,499
SAYBOLT INC NA 46,402
SCHEMA CORP NA 124,974
SCOTT CONSTRUCTION EQUIPMENT NA 26,743
SEA BREX MARINE NA 127,789
SEAMOSS INC NA 103,490
SG PINNEY & ASSOC INSTR SALES NA 36,890
SILICON GRAPHICS COMPUTER SYSTEMS NA 59,520
SMITHKLINE BEECHAM CLINICAL LAB NA 28,048
SNELL INFRARED NA 31,525
SOFTWARE SENSE SYSTEMS INC NA 41,950
SOUTH MS ELECTRIC POWER ASSN NA 53,786
SOUTHERLAND FABRICATION NA 38,805
SOUTHWEST RESEARCH INSTITUTE NA 25,409
STANDARD SUPPLY & HARDWARE CO INC NA 230,483
STAR SERVICE INC OF BATON ROUGE NA 189,683
STATE OF LA MILITARY BUILDING NA 25,875
STEVENSON & ASSOC NA 36,200
STEWART D EBNETER NA 122,317
STUDSVIK OF AMERICA NA 76,048
SYNERGY NA 26,097
SYSECA INC NA 480,400
TAYLOR BACKHOE & NURSERY NA 82,038
TEAM INDUSTRIAL SERVICES INC NA 63,729
TENSAS PARISH POLICE JURY NA 89,088
TEST & MEASUREMENTS INSTRUMENT NA 81,436
THOMAS SERVICE INC NA 42,066
TJ SULLIVAN & ASSOC INC NA 56,692
TODD ELECTRIC INC NA 46,429
TRANSCO PRODUCTS INC NA 1,226,815
TRENTEC NA 43,930
TULANE UNIVERSITY NA 70,000
TURBO CARE NA 132,006
UNDERWATER CONSTRUCTION CORP NA 568,514
UNIVERSITY OF MD NA 139,708
UTILITY SYSTEMS SERVICES INC NA 1,158,445
VATTENFALL USA NA 1,103,900
VERNER & JAMES INC NA 45,324
VISION ASSOCIATES INC NA 126,920
WACHS TECHNICAL SERVICES INC NA 132,624
WACKENHUT CORP NA 16,278,495
WASHINGTON PUBLIC POWER SUPPLY SYSTEM NA 80,000
WASTE MANAGEMENT NA 94,280
WASTE MANAGEMENT RSVL DISTRICT NA 61,802
WD ASSOC INC NA 175,968
WELDING TESTING LAB INC NA 42,837
WESTERN TEMPORARY SERVICES INC NA 28,793
WHOLESALE CARPETS & INTERIORS INC NA 27,522
WISCONSIN ELECTRIC POWER CO POINT BEACH PLANT NA 55,363
WMG INC NA 35,702
WYLE LABORATORIES NA 162,174
XEROX BUSINESS CORP NA 527,587
------------
Subtotal 102,353,098
------------
TOTAL $233,407,904
============
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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
Medical & Other Benefits Under Flex Benefit Programs $15,741,507
Savings Plan 5,195,207
Pension Plans (3,175)
Employee Meetings/Functions/Awards 598,463
Educational Reimbursement 541,553
Employee Stock Investment Plan 1,023,009
-----------
TOTAL $23,096,564
===========
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 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 Miller & Associates $18,894
Nuclear Energy Institute 7,803
Channing L Bete Co Inc. 3,941
Others less than $3,000 7,448
Recruiting Entergy Services Inc. 70,975
Others less than $3,000 2,555
--------
TOTAL $111,616
========
21 OF 27 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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
Electric Power Research Institute fees $2,601,165
Institute of Nuclear Power Operations, Inc. fees 2,141,103
Nuclear Energy Institute fees 1,010,381
Directors fees and expenses 30,935
Industry association dues/ corporate memberships 302,038
----------
TOTAL $6,085,622
==========
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 $6,273,147
Office equipment 4,611,857
Computer Equipment 1,202,479
Telecommunications 2,616,502
-----------
TOTAL $14,703,985
===========
22 OF 27 PAGES
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 $300,956
Franchise (3,894)
State Unemployment 424,436
Other Payroll Taxes 86,622
-----------
SUBTOTAL 808,120
-----------
U.S. GOVERNMENT TAXES:
FICA 16,134,814
Federal Unemployment 216,780
Other Payroll Taxes 739,629
-----------
SUBTOTAL 17,091,223
-----------
TOTAL $17,899,343
===========
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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.
<TABLE>
<CAPTION>
Name of Recipient Purpose of Donation Amount
<S> <C> <C>
United Way Charity $121,610
Junior Achievement of Mississippi Contribution 9,760
Mississippi Business Journal Contribution 5,000
Mississippi State University Foundation Contribution 4,243
Chamber of Commerce Contribution 4,000
Russellville High School Contribution 3,683
Port Gibson Main St Inc Contribution 3,000
Others less than $3,000 (98) Contribution 49,169
--------
TOTAL $200,465
========
23 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Other Deductions
Instructions:
Provide a listing of the amount included in "Other Deductions,"
classifying such expenses according to their nature.
<TABLE>
<CAPTION>
Description Name of Payee Amount
<S> <C> <C>
Employee meetings, functions and awards Dixie Marketing Group, Inc. $3,849
Various employees and other vendors (15) 5,461
Congressional Information Program expenses Westin Canal Place 10,257
Legal services William Ferguson Attorney at law 8,350
Other miscellaneous expenses Various employees and other vendors (16) 13,638
-------
TOTAL $41,555
=======
</TABLE>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
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 13 ( 2 ) through 13 ( 8 ).
24 OF 27 PAGES
<PAGE>
<TABLE>
<CAPTION>
ANNUAL REPORT OF ENTERGY OPERATIONS, INC.
For the Year Ended December 31, 1998
Schedule XIX - Financial Data Schedule
Item No. Caption Heading Amount
<S> <C> <C>
1 Net Service Company Property $2,614,806
2 Total Investments -
3 Total Current and Accrued Assets 40,848,978
4 Total Deferred Debits 2,159,737
5 Balancing Amount For Total Assets and Other Debits -
6 Total Assets and Other Debits 45,623,521
7 Total Proprietary Capital 1,000,000
8 Total Long-Term Debt -
9 Notes Payable -
10 Notes Payable to Associated Companies 6,947,693
11 Balancing Amount For Total Current and Accrued Liabilities 37,162,103
12 Total Deferred Credits 318,473
13 Accumulated Deferred Income Taxes 195,252
14 Total Liabilities and Proprietary Capital 45,623,521
15 Services Rendered to Associate Companies 666,573,160
16 Services Rendered to Nonassociate Companies -
17 Miscellaneous Income or Loss -
18 Total Income 666,573,160
19 Salaries and Wages 19,460,407
20 Employee Pensions and Benefits 22,162,864
21 Balancing Amount For Total Expenses 624,949,889
22 Total Expenses 666,573,160
23 Net Income (Loss) -
24 Total Expenses (Direct Costs) 645,025,974
25 Total Expenses (Indirect Costs) 21,547,186
26 Total Expenses (Total) 666,573,160
27 Number of Personnel End of Year 3,581
25 OF 27 PAGES
</TABLE>
<PAGE>
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1998
Organization Charts
President and Chief Executive Officer
Regulated Nuclear Operations
Non-Regulated Nuclear Operations
Operations Support
Nuclear Fuels Procurement
Operations and Maintenance Technical Support
Materials, Purchasing and Contracts Support
Nuclear Safety and Licensing Support
Information Technology Support
Chemical, Environmental, and Radioactive Waste Support
Total Quality Review and Assessment
Legal Services and Risk Management
Security
Engineering
Design Engineering
Engineering Support
Nuclear Engineering Analysis
Engineering Programs
Business Development
Project Management
Financial Control
Outage Management & Work Control
Finance
Financial Control
Regulatory and Performance Reporting
ANNUAL REPORT OF ENTERGY OPERATIONS INC.
For the Year Ended December 31, 1998
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, 1998
Annual Statement of Compensation for Use of Capital Billed
- None -
26 of 27 PAGES
<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 thereunder, the undersigned company
has duly caused this report to be signed on its behalf by the
undersigned officer thereunto duly authorized.
Entergy Operations, Inc.
(Name of Reporting Company)
By: /s/ Nathan E. Langston
(Signature of Signing Officer)
Nathan E. Langston
Vice President and Chief Accounting Officer
(Printed Name and Title of Signing Officer)
Date: April 26, 1999
27 OF 27 PAGES
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