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 .
________________
.
.
.
(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 third quarter ended September 30, 2004 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, dated December 17, 1971 in File No. 70-5015 and April 28, 1978 in File No. 70-5889.
Expenditures for SFI's fuel program for 2004 during the 3rd quarter are indicated below:
|
Net Expenditures |
||
|
3rd Quarter |
Year-To-Date |
|
|
2004 Fuel Supply Program: |
||
|
1. Gas and Oil Development |
|
|
|
2. Nuclear Fuel Procurement |
3,322 |
11,265 |
|
3. Fuel Oil Program |
(4,152) |
17,762 |
|
TOTAL EXPENDITURES |
(830) |
29,027 |
|
Less funds derived through |
||
|
Amortization & depreciation |
||
|
Charges |
0 |
0 |
|
Amortization of Gas & Oil |
||
|
Development & Production Costs |
0 |
0 |
|
Depreciation & Other |
||
|
Amortization |
0 |
2 |
|
TOTAL depreciation & amortization |
0 |
2 |
|
Net Expenditures |
(830) |
29,029 |
|
(Increase) decrease in: |
||
|
Outside financing |
||
|
System Money Pool borrowings |
(10,191) |
(71,651) |
|
TOTAL (increase)decrease |
||
|
in borrowings |
(10,191) |
(71,651) |
|
Increase (decrease) in working |
||
|
Capital |
$11,021 |
$ 42,622 |
|
1. Gas and Oil Development and |
||
|
Production |
||
|
Net Expenditures |
||
|
3rd Quarter |
Year-To-Date |
|
|
Gas and Oil Development |
||
|
and Production |
$ 0 |
$ 0 |
Effective July 1, 1996, SFI sold its interest in the properties associated with its Gas and Oil Development and Production Program (the program).
As of September 30, 2003, there are no remaining proceeds at SFI for the continuing shutdown activities.
Calculation of the net expenditures (proceeds) from the continuing shutdown activities of the Program, is:
|
Net Expenditures |
||
|
3rd Quarter |
Year-To-Date |
|
|
Sales to non-System parties: |
||
|
Natural gas |
$ 0 |
$ 0 |
|
Condensate |
0 |
0 |
|
Crude oil |
0 |
0 |
|
TOTAL |
0 |
0 |
|
Miscellaneous income (including |
||
|
sale of assets) |
0 |
0 |
|
TOTAL |
0 |
0 |
|
General and administrative |
||
|
Expense |
0 |
0 |
|
Operating expense |
0 |
0 |
|
Interest expense |
0 |
0 |
|
Amortization adjustment |
0 |
0 |
|
Net proceeds |
$ 0 |
$ 0 |
|
2. Nuclear Fuel Procurement |
||
|
|
||
|
Net Expenditures |
||
|
3rd Quarter |
Year-To-Date |
|
|
Nuclear Fuel Procurement |
$3,322 |
$11,265 |
|
Net Expenditures |
||
|
3rd Quarter |
Year-To-Date |
|
|
Activities during the period: |
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|
Expenditures for nuclear |
||
|
Materials and processing |
||
|
Services |
$3,137 |
$ 45,156 |
|
General and administrative |
||
|
Expense |
117 |
205 |
|
Interest expense |
136 |
229 |
|
TOTAL |
3,390 |
45,590 |
|
Sales of nuclear materials and |
||
|
Processing services to |
||
|
System companies |
68 |
34,325 |
|
Net effect on inventory |
$3,322 |
$ 11,265 |
|
3. Fuel Oil Program |
||
|
|
||
|
Net Expenditures |
||
|
3rd Quarter |
Year-To-Date |
|
|
Fuel Oil Inventory |
$(4,152) |
$ 17,762 |
|
a) Fuel Oil Inventory: |
||
|
Barrels |
Book Value |
|
|
Inventory as of: |
(In Thousands) |
|
|
September 30, 2004 |
2,015 |
61,002 |
|
June 30, 2004 |
2,177 |
65,154 |
|
March 31, 2004 |
1,437 |
41,546 |
|
December 31, 2003 |
1,622 |
43,861 |
|
September 30, 2003 |
1,762 |
49,475 |
|
During 3rd Quarter |
||
|
Barrels |
Value |
|
|
Sales price per barrel |
||
|
to System companies |
||
|
Excluding period cost: |
||
|
#2 Fuel Oil |
26,434 |
36.91 |
|
#6 Fuel Oil |
2,428,817 |
29.94 |
4. Other Items:
a) As of September 30, 2004, SFI's outstanding debt and Parent Companies investment consisted of:
|
Parent Companies: |
In Thousands |
|
Common Stock |
$ 20 |
|
Notes payable |
34,000 |
|
TOTAL |
34,020 |
|
System Money Pool |
71,651 |
|
Banks |
0 |
|
TOTAL |
$105,671 |
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 3rd quarter of 2004, SFI was billed by Entergy Services for the following amounts:
|
|
|
|
Total |
|
|
Cost of service charged |
||||
|
to Service Requests |
||||
|
established to track |
||||
|
cost of functions |
||||
|
previously performed by |
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|
SFI personnel: |
||||
|
Direct Cost: |
||||
|
Labor and related |
||||
|
Cost |
$ 6,977 |
$ 6,235 |
$5,987 |
$ 19,199 |
|
Other direct cost |
(459) |
6,506 |
1,988 |
8,035 |
|
Indirect Cost |
1,575 |
1,754 |
1,352 |
4,681 |
|
TOTAL |
8,093 |
14,495 |
9,327 |
31,915 |
|
Cost of services charged |
||||
|
to Service Requests not |
||||
|
Related to transfer of |
||||
|
SFI personnel: |
55,542 |
48,486 |
45,568 |
149,596 |
|
|
||||
|
Total cost of services |
||||
|
performed by Entergy |
||||
|
Services |
$63,635 |
$ 62,981 |
$ 54,895 |
$181,511 |
|
Amounts billed to |
||||
|
Operating Companies for |
||||
|
The Fuel Oil Program* |
$23,592 |
$23,510 |
$20,080 |
$67,182 |
|
Charged to Nuclear Fuel |
||||
|
Procurement |
40,043 |
39,471 |
34,815 |
114,329 |
|
TOTAL |
$63,635 |
$ 62,981 |
$ 54,895 |
$181,511 |
* Charged to the Fuel Oil Program as a component of period costs. Effective January 1, 1998, Fuel Oil Program period costs are recorded by plant, to the extent possible, and direct billed to the operating company that owns the facility where incurred. Costs which cannot be directly associated with a facility or an operating company, continue to be allocated as before. For the 3rd quarter of 2004, such Fuel Oil Program period costs were allocated 9.73% to ENTERGY ARKANSAS, INC., 50.88% to ENTERGY LOUISIANA, INC., 28.90% to ENTERGY MISSISSIPPI, INC., and 10.49% 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.
IN WITNESS WHEREOF, SFI has caused this certificate to be executed as of the 29th of October 2004.
|
ENTERGY ARKANSAS, INC. |
|
BY: /s/ Nathan E. Langston |
|
SYSTEM FUELS, INC. |
|
BY: /s/ Steven C. McNeal |