UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
. . . . . . . . . . . . . . . . . . . . . . . . .. .
.
In the Matter of .
.
ARKANSAS POWER & LIGHT COMPANY .
LOUISIANA POWER & LIGHT COMPANY .
MISSISSIPPI POWER & LIGHT COMPANY .
NEW ORLEANS PUBLIC SERVICE INC. .
.
File No. 70-5015 .
________________ . CERTIFICATE
. PURSUANT TO
In the Matter of . RULE 24
.
SYSTEM FUELS, INC. .
SYSTEM ENERGY RESOURCES, INC. .
ARKANSAS POWER & LIGHT COMPANY .
LOUISIANA POWER & LIGHT COMPANY .
MISSISSIPPI POWER & LIGHT COMPANY .
NEW ORLEANS PUBLIC SERVICE INC. .
.
File No. 70-5889 .
File No. 70-7574 .
File No. 70-7668 .
.
(Public Utility Holding Company Act of 1935) .
. . . . . . . . . . . . . . . . . . . . . . . . .. .
Pursuant to Rule 24 promulgated by the Securities and Exchange
Commission (SEC) under the Public Utility Holding Company Act of
1935, modified by request in the application(s) - declaration(s)
referenced above, this is to certify that the following
transactions were carried out and borrowings made, during the
quarter ended March 31, 1994, pursuant to System Fuels, Inc.'s
(SFI) function as a supplier of fuel for the Entergy Corporation
Operating Companies (System) in accordance with the terms and
conditions of and for the purposes represented in the
application(s) - declaration(s), as amended, and pursuant to the
Orders of the SEC, indicated below:
70-5015 December 17, 1971 .................................. I
70-5889 April 28, 1978 ..................................... I
70-7574 January 31, 1989 ................................... II
70-7668 September 27, 1989 ................................. III
70-8331 December 29, 1993 .................................. IV
<PAGE>
I. File No. 70-5015 and File No. 70-5889 - 1994 Fuel Supply
Programs
Expenditures for SFI's fuel program for 1994 during the 1st
quarter are indicated below:
Net
Expenditures
During
1st Qtr
(In Thousands)
1994 Fuel Supply Program:
1. Gas and Oil Development and Production $ 106
2. Nuclear Fuel Procurement 5,900
3. Fuel Oil Program (3,279)
Total Expenditures 2,727
Less funds derived through amortization and
depreciation charges:
Amortization of Gas and Oil Development and
Production Costs (411)
Depreciation and other amortization (134)
Total depreciation and amortization (545)
Net Expenditures 2,182
(Increase) Decrease in:
Outside financing 0
System Money Pool borrowings 1,449
Parent Companies borrowings 0
Total (increase) decrease in borrowings 1,449
(Increase) Decrease in working capital $ 3,631
1. Gas and Oil Development and Production
Net
Expenditures
During
1st Qtr
(In Thousands)
Gas and Oil Development and Production $ 106
a) During the quarter, there was no drilling activity
b) SFI produced, during the quarter, 198,000 MCF of
natural gas and 12,600 barrels of oil from its Gas and
Oil Development and Production Program (Program) which
were sold to non-System parties.
During the 1st quarter of 1994, all of SFI's natural
gas production was sold to non-System parties. This
condition is expected to continue indefinitely. As a
result, SFI's expenditures in the Program are being
limited to amounts required to protect its existing
investments in the properties. As previously reported,
amortization has exceeded SFI's investment in the
program, and the first quarter's results are an added
excess of $305,054 for a total of $2,068,107. No
investments in new leases are being made at this time.
c) Calculation of net proceeds(amortization) from sales
to non-System parties from the Program used to amortize
the investment in the Program:
Net
Expenditures
During
1st Qtr
(In Thousands)
Sales to non-System parties:
Natural Gas $ 438
Condensate 11
Crude Oil 154
Total 603
Miscellaneous income from non-System parties 61
Total 664
General and administrative expense (139)
Operating expense (133)
Interest expense 16
Amortization adjustment 3
Net proceeds $ 411
2. Nuclear Fuel Procurement (See Item III)
Net
Expenditures
During
1st Qtr
(In Thousands)
Nuclear Fuel Procurement $ 5,900
Net
Expenditures
During
1st Qtr
(In Thousands)
Activities during the period:
Expenditures for nuclear materials and processing
services $ 5,661
General and administrative expense 24
Interest expense 215
Total 5,900
Sales of nuclear materials and processing
services to System companies 0
Net effect on inventory $ 5,900
During the quarter, SFI's purchases totaled $5,661,000
for Nuclear materials and services for use in 1994.
During the quarter, SFI had no sales of Nuclear materials
and services .
3. Fuel Oil Program (See Item II)
Net
Expenditures
During
1st Qtr
(In Thousands)
Fuel Oil Inventory $(3,279)
a) Fuel Oil Inventory:
Book
Inventory as of: Barrels Value
(In Thousands)
December 31, 1993 2,070 31,596
March 31, 1994 1,790 $28,316
During 1st Qtr.
Barrels Cost
Sales price per barrel to System companies
excluding period cost:
#2 Fuel Oil 57,828 $24.84
#6 Fuel Oil 819,190 $ 9.85
During the quarter, SFI and Marathon Oil Company began
discussions regrding the continuation of suspension of the
fuel oil deliveries under a supply contract with Marathon
dated April 15, 1982. Other than Marathon, SFI has no long
term contracts for fuel oil.
4. Other Items:
a) As of March 31, 1994, SFI's outstanding debt and Parent
Companies investment consisted of:
(In Thousands)
Parent Companies:
Common stock $ 20
Notes payable 34,000
Total 34,020
System Money Pool 26,779
Outside Financing:
Bank borrowings 0
Total $60,799
b) As of January 1, 1987, SFI's employees were
transferred to Entergy Services, Inc. (Entergy Services)
where some of them continue to operate the continuing
activities of SFI. For the 1st quarter of 1994, SFI was
billed by Entergy Services, Inc. the following amounts
for services performed for SFI that were previously
performed by SFI employees. SFI also reimbursed Entergy
Services, at cost, for other services received
(financial, legal, administrative and other activities).
Total
During
Jan Feb Mar 1st Qtr
Cost of services charged to
Service Requests established
to track cost of functions
previously performed by SFI
personnel:
Direct Cost:
Labor and related cost $ 7,566 $ 33,435 $ 31,533 $ 72,534
Other direct cost 5,876 10,595 10,740 27,211
Indirect cost 3,982 7,952 7,786 19,720
Total 17,424 51,982 50,059 119,465
Cost of services charged to
Service Requests not related
to transfer of SFI personnel 97,290 95,763 78,641 271,694
Total cost of services
performed by Entergy
Services $114,714 $147,745 $128,700 $391,159
Amounts billed to Operating
Companies for the Fuel Oil
Program * $ 80,167 $104,332 $ 80,501 $265,000
Charged to Nuclear Fuel
Procurement 5,581 5,835 6,180 17,596
Charged to Gas and Oil
Development and Production 28,966 37,578 42,019 108,563
Total $114,714 $147,745 $128,700 $391,159
*Charged to the Fuel Oil Program as a component of
period costs.For the 1st quarter of 1994 Fuel Oil Program
period costs were allocated 15% to Arkansas Power & Light
Company, 54% to Louisiana Power & Light Company, 19% to
Mississippi Power & Light Company and 12% to New Orleans
Public Service Inc.
c) As previously reported, the System's fuels planning
and procurement administration was reorganized during
1988, redefining the fuels management roles and placing
the responsibility for most fuel procurement decisions
with Entergy Corporation System Executives.
SFI, utilizing Entergy Services personnel, continues
to be responsible for gas and oil production, financing
nuclear fuel inventory and fuel oil inventory and
facilities, and accounting functions related to these
continuing activities.
II. File No 70-7574 Bank of America Agreement (B of A)
During the quarter, SFI did not borrow or repay any loans
under this financing agreement. Commitment fees of $18,750
were incurred onthe unused portion of the agreement. There
was no average outstanding principal balance and no interest
cost.
As of March 31, 1994, the sum of the Aggregate Borrowing
Base of Eligible Fuel Oil Inventory and Receivables was
$10,950,000 and there were no borrowings outstanding under
the B of A agreement.
III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement
(Yasuda)
During the quarter, SFI did not borrow or repay any loans
under this financing agreement. Commitment fees of $19,973
were incurred on the unused portion of the agreement. There
was no average outstanding principal balance and no interest
cost.
As previously reported, the Yasuda credit agreement was
amended, pursuant to SEC authorization (See HCAR No. 25634,
dated September 17, 1992) to increase the commitment fees
and margins payable on certain loans and to extend the
termination date of the agreement to September 30, 1995. A
copy of the amended credit agreement was filed.
As of March 31, 1994, the book value of the nuclear fuel
was $19,836,000 and there were no borrowings outstanding
under the Yasuda agreement.
IV. File No 70-8331 Entergy Corporation Revolving Credit Agreement
(Entergy)
Pursuant to the Order issued on March 16, 1994 (Release 35-
26006), SFI entered into a loan agreement with Entergy
Corporation on March 21, 1994. The agreement allows SFI to
borrow and reborrow from Entergy Corporation amount not to
exceed $30,000,000 at any one time. This agreement
terminates on December 31, 1996.
During the quarter ended March 31, 1994, SFI did not
borrow under this agreement.
<PAGE>
IN WITNESS WHEREOF, SFI has caused this certificate to be
executed as of the 2nd of May, 1994.
BY: /s/Glenn E. Harder
Glenn E. Harder
Treasurer and Assistant
Secretary
