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 .
________________ .
.
In the Matter of .
.
SYSTEM FUELS, INC. .
ENTERGY CORPORATION .
.
File No. 70-8331 .
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(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 June 30, 1995, 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 March 16, 1994 ..................................... IV
<PAGE>
I. File No. 70-5015 and File No. 70-5889 - 1995 Fuel Supply
Programs
Expenditures for SFI's fuel program for 1995 during the 2nd
quarter and year to date are indicated below:
Net Expenditures
During Year
2nd Qtr To Date
(In Thousands)
1995 Fuel Supply Program:
1. Gas and Oil Development and Production ......... $ 0 $ 1
2. Nuclear Fuel Procurement ....................... (3,034) (6,173)
3. Fuel Oil Program ............................... 100 (67)
--------- --------
Total Expenditures .................................... (2,934) (6,239)
--------- --------
Less funds derived through amortization and
depreciation charges:
Amortization of Gas and Oil Development and
Production Costs ................................. (464) (874)
Depreciation and other amortization ................ (141) (282)
--------- --------
Total depreciation and amortization ................... (605) (1,156)
--------- --------
Net Expenditures ...................................... (3,539) (7,395)
(Increase) Decrease in:
Outside financing .................................. 0 8,000
System Money Pool borrowings ....................... 11,957 12,590
Parent Companies borrowings ........................ 0 0
--------- --------
Total (increase) decrease in borrowings ............... 11,957 20,590
--------- --------
(Increase) Decrease in working capital ................$ (8,418) $(13,195)
========= ========
1. Gas and Oil Development and Production
Net Expenditures
During Year
2nd Qtr To Date
(In Thousands)
Gas and Oil Development and Production ............. $ 0 $ 1
======== ========
a) During the quarter, there was no drilling activity
b) SFI produced, during the quarter, 399,500 MCF of
natural gas and 14,000 barrels of oil from its Gas and Oil
Development and Production Program (Program) which were
sold to non-System parties.
During the 2nd quarter of 1995, 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. No investments in new
leases are being made at this time.
During this quarter, SFI recorded net excess
amortization of $464,000, which results in accumulated
excess amortization of $874,000 at the end of this period.
c) Calculation of net proceeds from sales to
non-System parties from the Program used to amortize the
investment in the Program:
Net Expenditures
During Year
2nd Qtr To Date
(In Thousands)
Sales to non-System parties:
Natural Gas .................................. $ 654 $ 1,245
Condensate ................................... 56 99
Crude Oil .................................... 194 385
------- --------
Total ......................................... 904 1,729
Miscellaneous income from non-System parties.. 70 137
------- --------
Total ......................................... 974 1,866
General and administrative expense ............ (15) (86)
Operating expense ............................. (470) (654)
Interest expense .............................. (14) (19)
Amortization adjustment ....................... (11) (233)
-------- --------
Net proceeds .................................. $ (464) $ (874)
======== ========
2. Nuclear Fuel Procurement (See Item III)
Net Expenditures
During Year
2nd Qtr To Date
(In Thousands)
Nuclear Fuel Procurement ........................... $ (3,034) $ (6,172)
======== ========
Net Expenditures
During Year
2nd Qtr To Date
(In Thousands)
Activities during the period:
Expenditures for nuclear materials and processing
services ..................................... $ 69,430 $ 77,179
General and administrative expense .............. 36 75
Interest expense ................................ 617 1,326
--------- --------
Total ........................................... 70,083 78,580
--------- --------
Sales of nuclear materials and processing
services to System companies ................. 73,117 84,752
--------- --------
Net effect on inventory ........................... $ (3,034) $ (6,172)
======== ========
During the quarter, SFI's purchases totaled $70.1 million
for nuclear materials and services. Also, SFI entered into two
contracts for the purchase of uranium and conversion services.
During this reporting period, SFI sold, to Arkansas Power &
Light Company, and , Louisiana Power & Light Company, nuclear
materials and services totaling $73.1 million.
3. Fuel Oil Program (See Item II)
Net Expenditures
During Year
2nd Qtr To Date
(In Thousands)
Fuel Oil Inventory ................................. $ 100 $ (67)
======== ========
a) Fuel Oil Inventory:
Book
Inventory as of: Barrels Value
(In Thousands)
December 31, 1994 ............................ 1,759 $ 28,526
March 31, 1995 ............................... 1,757 $ 28,359
June 30, 1995 ................................ 1,755 $ 28,459
During 2nd Qtr.
Barrels Cost
Sales price per barrel to System companies
excluding period cost:
#2 Fuel Oil ............................... 29,603 $ 21.63
#6 Fuel Oil ............................... 645 $ 11.21
SFI has a fuel oil supply contract with Marathon Oil Company
dated April 15, 1982. On January 1, 1994, Marathon Oil
Company breached the contract by refusing to deliver product,
and on December 29, 1994 SFI filed suit against Marathon in
federal court in New Orleans, Louisiana. During this quarter,
SFI continued with preparations for the trial which was
rescheduled from November 27, 1995 to January 29, 1996, at
the request of the court.
4. Other Items:
a) As of June 30, 1995, 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 ............................ 0
--------
Outside Financing:
Bank borrowings ........................... 15,000
--------
Total ........................................ $ 49,020
========
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 2nd quarter of 1995, 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
Apr May Jun 2nd 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 $ 17,359 $ 26,917 $ 20,089 $ 64,365
Other direct cost ..... 2,808 2,170 3,499 8,477
Indirect cost ............ 593 3,306 2,904 6,803
-------- -------- --------- --------
Total .............. 20,760 32,393 26,492 79,645
-------- -------- --------- --------
Cost of services charged to
Service Requests not related
to transfer of SFI personnel. 140,077 129,770 136,864 406,711
-------- -------- --------- --------
Total cost of services
performed by Entergy
Services .................... $160,837 $162,163 $163,356 $486,356
======== ======== ======== ========
Amounts billed to Operating
Companies for the Fuel Oil
Program * ................... $121,156 $111,851 $105,364 $338,371
Deferred Cost/Services....... 0 0 0 0
Charged to Nuclear Fuel
Procurement ................. 8,976 14,593 8,779 32,348
Charged to Gas and Oil
Development and Production .. 30,705 35,719 49,213 115,637
-------- -------- -------- --------
Total .................... $160,837 $162,163 $163,356 $486,356
======== ======== ======== ========
* Charged to the Fuel Oil Program as a component of
period costs. For the 2nd quarter of 1995 Fuel Oil Program
period costs were allocated 6% to Arkansas Power & Light
Company, 61% to Louisiana Power & Light Company, 23% to
Mississippi Power & Light Company and 10% 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 amount
under this financing agreement. Commitment fees of $11,766 were
incurred on the unused portion of the agreement. There were no
outstanding borrowings, during this quarter, under this
agreement.
As of June 30, 1995, the sum of the Aggregate Borrowing Base
of Eligible Fuel Oil Inventory and Receivables was $10,655,000.
III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement
(Yasuda)
During the quarter, SFI did not borrow, or repay, any
amounts under this financing agreement. Commitment fees of
$13,463 were incurred on the unused portion of the agreement.
The average outstanding principal balance, for the quarter, was
$15,000,000 and interest cost totaled $269,948.
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 previously filed with the SEC.
As of June 30, 1995, the book value of the nuclear fuel was
$31,118,000 and there was $15,000,000 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 amounts not to exceed
$30,000,000 at any one time. This agreement terminates
on December 31, 1996.
During the quarter ended June 30, 1995, SFI did not
borrow under this agreement.
<PAGE>
IN WITNESS WHEREOF, SFI has caused this certificate to be
executed as of the 31st of July, 1995.
ARKANSAS POWER & LIGHT COMPANY
LOUISIANA POWER & LIGHT COMPANY
MISSISSIPPI POWER & LIGHT COMPANY
NEW ORLEANS PUBLIC SERVICE INC.
SYSTEM ENERGY RESOURCES, INC
ENTERGY CORPORATION
BY: /s/William J. Regan, Jr.
William J. Regan, Jr.
Vice President
and Treasurer
SYSTEM FUELS, INC.
BY: /s/William J. Regan, Jr.
William J. Regan, Jr.
Vice President, Treasurer
and Assistant Secretary
