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, 2001, 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 2001 during the 3rd
quarter are indicated below:
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
2001 Fuel Supply Program:
1. Gas and Oil Development
and Production $ 0 $ 0
2. Nuclear Fuel Procurement 1,871 (4,144)
3. Fuel Oil Program (3,427) (2,365)
--------- --------
TOTAL EXPENDITURES (1,556) (6,509)
--------- --------
Less funds derived through
amortization & depreciation
Charges
Amortization of Gas & Oil
Development & Production Costs 50 322
Depreciation & Other
Amortization (6) (20)
--------- --------
TOTAL depreciation & amortization 44 302
--------- --------
Net Expenditures (1,512) (6,207)
(Increase) decrease in:
Outside financing
System Money Pool borrowings 18,651 48,663
--------- --------
TOTAL (increase)decrease
in borrowings 18,651 48,663
--------- --------
Increase (decrease) in working
Capital $ (17,139) $(42,456)
========= ========
1. Gas and Oil Development and
Production
Net Expenditures
(In Thousands)
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).
During this quarter, SFI had no expenditures relative to
the continuing shutdown of this operation. As of September
30, 2001, accumulated net proceeds of approximately
$279,522 are retained at SFI for the continuing shutdown
activities.
Calculation of the net expenditures (proceeds) from the
continuing shutdown activities of the Program, is:
Net Expenditures
(In Thousands)
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 28 327
Operating expense 0 0
Interest expense 0 0
Amortization adjustment 22 (5)
---- ----
Net proceeds $ 50 $322
==== ====
2. Nuclear Fuel Procurement
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
Nuclear Fuel Procurement $1,871 $(4,144)
====== =======
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
Activities during the period:
Expenditures for nuclear
materials and processing
services $ 1,530 $22,882
General and administrative
expense 66 389
Interest expense 322 1,137
------- -------
TOTAL 1,918 24,408
------- -------
Sales of nuclear materials and
processing services to
System companies 47 28,552
------- -------
Net effect on inventory $ 1,871 $(4,144)
======= =======
3. Fuel Oil Program
Net Expenditures
(In Thousands)
3rd Quarter Year-To-Date
Fuel Oil Inventory $(3,427) $(2,365)
======= =======
a) Fuel Oil Inventory:
Barrels Book Value
Inventory as of: (In Thousands)
September 30, 2001 2,107 38,232
June 30, 2001 1,588 41,659
March 31, 2001 2,136 58,529
December 31, 2000 1,220 40,597
September 30, 2000 1,872 46,027
During 3rd
Quarter
Barrels Value
Sales price per barrel
to System companies
Excluding period cost:
#2 Fuel Oil 23,605 35.61
#6 Fuel Oil 2,588,870 17.56
4. Other Items:
a) As of September 30, 2001, 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 37,746
Banks 0
-------
TOTAL 71,766
=======
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 2001, SFI was
billed by Entergy Services for the following amounts:
Total
July August September 3rd Qtr
Cost of service charged
to Service Requests
established to track
cost of functions
previously performed by
SFI personnel:
Direct Cost:
Labor and related
Cost $ 4,869 $ 5,205 $ 4,084 $ 14,158
Other direct cost 3,765 3,474 3,096 10,335
Indirect Cost 1,564 1,647 1,483 4,694
-------- ------- -------- --------
TOTAL 10,198 10,326 8,663 29,187
-------- ------- -------- --------
Cost of services charged
to Service Requests not
Related to transfer of
SFI personnel: 62,311 69,861 72,075 204,247
-------- ------- -------- --------
Total cost of services
performed by Entergy
Services $ 72,509 $80,187 $ 80,738 $233,434
======== ======= ======== ========
Amounts billed to
Operating Companies for
The Fuel Oil Program* $ 72,186 $55,595 $ 42,318 $170,099
Charged to Nuclear Fuel
Procurement 323 24,592 38,420 63,335
-------- ------- -------- --------
TOTAL $ 72,509 $80,187 $ 80,738 $233,434
======== ======= ======== ========
* 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 2001, such
Fuel Oil Program period costs were allocated 9.95% to
ENTERGY ARKANSAS, INC., 49.67% to ENTERGY LOUISIANA, INC.,
29.41% to ENTERGY MISSISSIPPI, INC., and 10.97% 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 30th of October 2001.
ENTERGY ARKANSAS, INC.
ENTERGY LOUISIANA, INC.
ENTERGY MISSISSIPPI, INC.
ENTERGY NEW ORLEANS, INC.
SYSTEM ENERGY RESOURCES, INC.
BY: /s/ Nathan E. Langston
Nathan E. Langston
Vice President and
Chief Accounting Officer
SYSTEM FUELS, INC.
BY: /s/ Steven C. McNeal
Steven C. McNeal
Vice President
and Treasurer