UNITED STATES OF AMERICA
BEFORE THE SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
. . . . . . . . . . . . . . . . . . . . . . . . . .
.
In the Matter of .
.
ENTERGY ARKANSAS, INC. .
ENTERGY LOUISIANA, INC. .
ENTERGY MISSISSIPPI, INC. .
ENTERGY NEW ORLEANS, INC. .
.
File No. 70-5015 .
________________ . CERTIFICATE
. PURSUANT TO
In the Matter of . RULE 24
.
SYSTEM FUELS, INC. .
SYSTEM ENERGY RESOURCES, INC. .
ENTERGY ARKANSAS, INC. .
ENTERGY LOUISIANA, INC. .
ENTERGY MISSISSIPPI, INC. .
ENTERGY NEW ORLEANS, 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 March 31, 1997, 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 - 1997 Fuel Supply
Programs
Expenditures for SFI's fuel program for 1997 during the 1st
quarter and year to date are indicated below:
Net Expenditures
During Year
1st Qtr To Date
(In Thousands)
1997 Fuel Supply Program:
1. Gas and Oil Development and Production .........$ (16) $ (16)
2. Nuclear Fuel Procurement ....................... 5,590 5,590
3. Fuel Oil Program ............................... (7,852) (7,852)
-------- -------
Total Expenditures ................................... (2,278) (2,278)
-------- -------
Less funds derived through amortization and
depreciation charges:
Amortization of Gas and Oil Development and
Production Costs ................................. - -
Depreciation and other amortization ................ (107) (107)
-------- -------
Total depreciation and amortization ................... (107) (107)
-------- -------
Net Expenditures ...................................... (2,385) (2,385)
(Increase) decrease in:
Outside financing .................................. - -
System Money Pool borrowings ....................... 12,484 12,484
-------- -------
Total (increase) decrease in borrowings ............... 12,484 12,484
-------- -------
Increase (decrease) in working capital $(10,099) $(10,099)
======== ========
<PAGE>
1. Gas and Oil Development and Production
Net Expenditures
During Year
1st Qtr To Date
(In Thousands)
Gas and Oil Development and Production ............. $ - _ $ - _
======== =======
Effective July 1, 1996, SFI sold its interest in the
properties associated with its Gas and Oil Development and
Production Program (the "program").
During this quarter, SFI had insignificant
expenditures relative to the continuing shutdown of this
operation. As previously reported, SFI distributed $3.5
million of the accumulated net proceeds to its parent
companies, on December 31, 1996. The remaining accumulated
proceeds of approximately $300,000 are being retained by
SFI to cover continuing shut down expenses to be completed
in 1997. Following completion of this work, any remaining
proceeds, or costs, will be distributed to the parent
companies.
Calculation of the net expenditures (proceeds)
from the continuing shutdown activities of the Program,
is:
Net Expenditures
During Year
1st Qtr To Date
(In Thousands)
Sales to non-System parties:
Natural gas .................................. $ - $ -
Condensate ................................... - -
Crude oil .................................... - -
------- -------
Total ...................................... - -
Miscellaneous income(including sale of assets). 8,137 8,137
------- -------
Total ......................................... 8,137 8,137
General and administrative expense ............ (551) (551)
Operating expense ............................. (556) (556)
Interest expense ............................ - -
Amortization adjustment (7,020) (7,020)
------- -------
Net proceeds ................................. $ 0 $ 0
======= =======
2. Nuclear Fuel Procurement (See Item III)
Net Expenditures
During Year
1st Qtr To Date
(In Thousands)
Nuclear Fuel Procurement ........................... $ 5,590 $ 5,590
========== =======
Net Expenditures
During Year
1st Qtr To Date
(In Thousands)
Activities during the period:
Expenditures for nuclear materials and processing
services .................................... $ 4,611 $ 4,611
General and administrative expense .............. 130 130
Interest expense ................................ 849 849
---------- --------
Total ........................................... 5,590 5,590
Sales of nuclear materials and processing ---------- --------
services to System companies ................. 0 0
---------- --------
Net effect on inventory ........................... $ 5,590 $ 5,590
========== ========
During the 1st quarter of 1997, SFI's purchases of nuclear
materials and services totaled $5.6 million. No new contracts
for nuclear materials and services were entered into during
this period.
During this reporting period, SFI had no sales of nuclear
materials and services.
3. Fuel Oil Program (See Item II)
Net Expenditures
During Year
1st Qtr To Date
(In Thousands)
Fuel Oil Inventory ................................. $(7,852) $(7,852)
======= =======
a) Fuel Oil Inventory:
Book
Inventory as of: Barrels Value
(In Thousands)
March 31, 1997 . ........................... 1,255 $ 26,319
December 31, 1996............................. 1,657 $ 34,171
September 30, 1996 ........................... 1,008 $ 20,761
June 30, 1996 ................................ 1,038 $ 20,898
March 31, 1996 ............................... 949 $ 19,764
During 1st Qtr.
Barrels Cost
Sales price per barrel to System companies
excluding period cost:
#2 Fuel Oil ............................... 33,808 $ 27.16
#6 Fuel Oil ............................... 1,413,156 $ 18.24
SFI has a fuel oil contract with Marathon Oil Company dated April
15, 1982 that was originally scheduled to terminate on December
31, 1996. 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 the first quarter 1996, SFI and Marathon reached a
negotiated settlement to the dispute, and Marathon resumed
delivery. However, a different grade of fuel oil was substituted
for the fuel oil originally required to be delivered under the
contract. Deliveries of the substitute fuel oil began on March 1,
1996 and will continue through February 28, 1999.
During the first quarter 1997, SFI purchased 1,165,882 barrels of
Bunker Grade oil from Marathon, and sold this product to a third
party for approximately $17.7 million.
4. Other Items:
a) As of March 31, 1997, 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 ............................ 43,954
Banks ........................................ 0
--------
Total ........................................ $ 77,974
========
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 activities for SFI and other
services provided to SFI (financial, legal,
administrative, and other activities). For the 1st
quarter of 1997, SFI was billed by Entergy Services for
the following amounts:
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 $ 10,845 $ 6,351 $ 6,371 $ 22,567
Other direct cost ..... 446 1,101 (603) 944
Indirect cost ............ 804 1,386 910 3,100
------------------------------------------
Total .............. 12,095 8,838 5,678 26,611
------------------------------------------
Cost of services charged to
Service Requests not related
to transfer of SFI personnel: 111,307 103,384 145,066 359,757
------------------------------------------
Total cost of services
performed by Entergy
Services .................... $123,402 $112,222 $ 150,744 $386,368
==========================================
Amounts billed to Operating
Companies for the Fuel Oil
Program * ................... $118,867 $ 69,563 $ 82,235 $270,665
Charged to Nuclear Fuel
Procurement ................. 4,535 42,659 68,509 115,703
------------------------------------------
Total .................... $123,402 $112,222 $ 150,744 $386,368
==========================================
* Charged to the Fuel Oil Program as a component of
period costs. For the 1st quarter of 1996 Fuel Oil Program
period costs were allocated 8% to ENTERGY ARKANSAS, INC.,
56% to ENTERGY LOUISIANA, INC., 26% to ENTERGY MISSISSIPPI,
INC., and 10% to ENTERGY NEW ORLEANS, 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 shut down, 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
This financing agreement expired January 31, 1996.
III. File No 70-7668 Yasuda Trust and Banking Co., Ltd. Agreement
(Yasuda)
As indicated in the previous filing pursuant to the SEC
order dated November 27, 1996, (Release No. 35-26617) in File No.
70-8899, activity pertaining to this loan agreement will be
reported by Entergy Services, Inc. under File No. 70-8899.
IV. File No 70-8331 Entergy Corporation Revolving Credit
Agreement (Entergy)
As indicated in the previous filing pursuant to the SEC
order dated November 26, 1996, (Release No. 35-26617) in File No.
70-8899, activity pertaining to this loan agreement will be
reported by Entergy Services, Inc. under File No. 70-8899.
IN WITNESS WHEREOF, SFI has caused this certificate to be
executed as of the 1st of May, 1997.
ENTERGY ARKANSAS, INC.
ENTERGY LOUISIANA, INC.
ENTERGY MISSISSIPPI, INC.
ENTERGY NEW ORLEANS, INC.
SYSTEM ENERGY RESOURCES, INC.
ENTERGY CORPORATION
BY: /s/William J. Regan
William J. Regan
Vice President
and Treasurer
SYSTEM FUELS, INC.
BY: /s/William J. Regan
William J. Regan
Vice President, Treasurer
and Assistant Secretary
