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 .
.
(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 September 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
I. File No. 70-5015 and File No. 70-5889 - 1995 Fuel Supply
Programs
Expenditures for SFI's fuel program for 1995 during the 3rd
quarter and year to date are indicated below:
Net Expenditures
During Year
3rd Qtr To Date
(In Thousands)
1995 Fuel Supply Program:
1. Gas and Oil Development and Production . $ 105 $ 105
2. Nuclear Fuel Procurement ............... 15,466 9,294
3. Fuel Oil Program ........................ (941) (1,007)
------ -----
Total Expenditures ............................14,630 8,392
------ -----
Less funds derived through amortization and
depreciation charges:
Amortization of Gas and Oil Development and
Production Costs .......................... (849) (1,723)
Depreciation and other amortization ......... (137) (420)
------ ------
Total depreciation and amortization ............ (986) (2,143)
------ ------
Net Expenditures ...............................13,644 6,249
(Increase) decrease in:
Outside financing ...........................15,000 23,000
System Money Pool borrowings ...............(21,646) (9,056)
-------- -------
Total (increase) decrease in borrowings ........(6,646) 13,944
-------- ------
Increase (decrease) in working capital $(6,998) $(20,193)
======== ========
1. Gas and Oil Development and Production
Net Expenditures
During Year
3rd Qtr To Date
(In Thousands)
Gas and Oil Development and Production $ 105 $ 105
======= =======
a) During the quarter, there was no drilling activity.
b) During the 3rd quarter of 1995, SFI produced 294,126
MCFs of natural gas and 13,638 barrels of oil from it's
Gas and Oil Development and Production Program (Program)
which were sold to non-System parties.
During the 3rd 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
investment in the properties. Investments in new leases
are not being made at this time.
During this quarter, SFI recorded net excess
amortization of $849,000, which resulted in accumulated
excess amortization of $1,723,000 at September 30, 1995.
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
3rd Qtr To Date
(In Thousands)
Sales to non-System parties:
Natural gas .......................... $ 692 $ 1,936
Condensate ............................ 26 126
Crude oil ............................. 132 517
------- -------
Total ................................. 850 2,579
Miscellaneous income from non-System parties.. 75 211
------- ------
Total .................................. 925 2,790
General and administrative expense ..... (24) (110)
Operating expense ...................... (100) (754)
Interest expense ....................... 15 (3)
Amortization adjustment ................ 33 (200)
------- --------
Net proceeds ........................... $ (849) $ (1,723)
========= ========
2. Nuclear Fuel Procurement (See Item III)
Net Expenditures
During Year
3rd Qtr To Date
(In Thousands)
Nuclear Fuel Procurement .................... $ 15,466 $ 9,294
======== =======
Net Expenditures
During Year
3rd Qtr To Date
(In Thousands)
Activities during the period:
Expenditures for nuclear materials and
processing services ..................... $ 14,759 $ 91,938
General and administrative expense ........ 53 128
Interest expense ........................... 654 1,980
-------- ------
Total .................................... 15,466 94,046
Sales of nuclear materials and processing
services to System companies ........ - 84,752
-------- -------
Net effect on inventory .................... $ 15,466 $ 9,294
======== =======
During the 3rd quarter of 1995, SFI's purchases totaled $15.5
million for nuclear materials and services. No new contracts
were entered into and no sales were made during the quarter.
3. Fuel Oil Program (See Item II)
Net Expenditures
During Year
3rd Qtr To Date
(In Thousands)
Fuel Oil Inventory .......................... $ (941) $ (1,007)
========= ========
a) Fuel Oil Inventory:
Book
Inventory as of: Barrels Value
(In Thousands)
September 30, 1995 ................... 1,735 $ 27,518
June 30, 1995 ....................... 1,755 $ 28,459
March 31, 1995 ....................... 1,757 $ 28,359
December 31, 1994 .................... 1,759 $ 28,526
During 3rd Qtr.
Barrels Cost
Sales price per barrel to System companies
excluding period cost:
#2 Fuel Oil ....................... 39,891 $ 22.92
#6 Fuel Oil ....................... 2,097 $ 11.71
SFI has a fuel oil contract with Marathon Oil Company dated
April 15, 1982. On January 1, 1994 Marathon 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 to
prepare 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 September 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 ............................ 21,646
-------
Total ........................................ $ 55,666
=======
b) As of January 1, 1987, SFI's employees were
transferred to Entergy Services, Inc. (Entergy Services).
Entergy Services bills SFI for labor associated with the
operation of continuing activites for SFI and other
services provided to SFI (financial, legal,
administrative, and other activities). For the 3rd
quarter of 1995, SFI was billed by Entergy Services for
the following amounts:
Total
During
Jul Aug Sep 3rd 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 $ 14,896 $ 21,330 $ 21,234 $ 57,460
Other direct cost .... 902 2,105 2,172 5,179
Indirect cost ........... 1,620 980 2,408 5,008
------- ------- ------ ------
Total ............. 17,418 24,415 25,814 67,647
------- ------- ------ ------
Cost of services charged to
Service Requests not related
to transfer of SFI personnel: 102,134 183,720 156,311 442,165
------- ------- ------- -------
Total cost of services
performed by Entergy
Services ................... $119,552 $208,135 $ 182,125 $509,812
======= ======= ======= =======
Amounts billed to Operating
Companies for the Fuel Oil
Program * .................. $ 72,651 $149,394 $ 133,211 $322,256
Charged to Nuclear Fuel
Procurement ................ 14,726 22,351 10,574 47,651
Charged to Gas and Oil
Development and Production . 32,175 36,390 38,340 106,905
------- ------- ------- -------
Total ................... $119,552 $208,135 $ 182,125 $509,812
======= ======= ======= =======
* Charged to the Fuel Oil Program as a component of
period costs. For the 3rd quarter of 1995 Fuel Oil Program
period costs were allocated 8% to Arkansas Power & Light
Company, 56% to Louisiana Power & Light Company, 26% 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
During the quarter, SFI had no borrowings or repayments
under this financing agreement. Commitment fees of $19,042 were
incurred on the unused portion of the agreement. As of September
30, 1995, the sum of the Aggregate Borrowing Base of Eligible
Fuel Oil Inventory and Receivables was $10,794,699, and there
were no outstanding borrowings under this agreement.
III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement
(Yasuda)
During the quarter, SFI had no borrowings and repaid
$15,000,000 under this financing agreement. Commitment fees of
$18,123 were incurred on the unused portion of the agreement.
The average outstanding principal balance was $0 and interest
cost totaled $92,839 for the quarter.
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 27, 1996. A copy of the amended
credit agreement was previously filed with the SEC.
As of September 30, 1995, the book value of the nuclear fuel
was $46,583,933 and there was no outstanding borrowings under the
Yasuda financing 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 expires on December
31, 1996.
During the quarter ended September 30, 1995, SFI borrowed
$21,646,000 under this agreement.
<PAGE>
IN WITNESS WHEREOF, SFI has caused this certificate to be
executed as of the 31st of October, 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
