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 .
________________ .
.
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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
fourth quarter ended December 31, 2002 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 2002 during the 4th
quarter are indicated below:
Net Expenditures
(In Thousands)
4th Quarter Year-To-Date
2002 Fuel Supply Program:
1. Gas and Oil Development
and Production $ 0 $ 0
2. Nuclear Fuel Procurement 13,188 (14,524)
3. Fuel Oil Program 706 (5,266)
----------- ---------
TOTAL EXPENDITURES 13,894 (19,790)
----------- ---------
Less funds derived through
Amortization & depreciation
Charges
Amortization of Gas & Oil
Development & Production Costs 0 (326)
Depreciation & Other
Amortization 7 22
----------- ---------
TOTAL depreciation & amortization 7 (304)
----------- ---------
Net Expenditures 13,901 (20,094)
(Increase) decrease in:
Outside financing
System Money Pool borrowings 0 27,741
----------- ---------
TOTAL (increase)decrease
in borrowings 0 27,741
----------- ---------
Increase (decrease) in working
Capital $ (13,901) $(7,647)
=========== =========
1. Gas and Oil Development and
Production
Net Expenditures
(In Thousands)
4th 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 December
31, 2002, accumulated net proceeds of approximately
$578,134 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)
4th 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 (326)
---- ----
Net proceeds $ 0 ($326)
===== =====
2. Nuclear Fuel Procurement
Net Expenditures
(In Thousands)
4th Quarter Year-To-Date
Nuclear Fuel Procurement $13,188 ($14,524)
======= ========
Net Expenditures
(In Thousands)
4th Quarter Year-To-Date
Activities during the period:
Expenditures for nuclear
Materials and processing
Services $13,019 $ 70,031
General and administrative
Expense 133 383
Interest expense 36 463
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TOTAL 13,188 70,877
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Sales of nuclear materials and
Processing services to
System companies 0 85,401
------- ----------
Net effect on inventory $13,188 ($14,524)
======= ==========
3. Fuel Oil Program
Net Expenditures
(In Thousands)
4th Quarter Year-To-Date
Fuel Oil Inventory $ 706 $(5,266)
====== =======
a) Fuel Oil Inventory:
Barrels Book Value
Inventory as of: (In Thousands)
December 31, 2002 1,382 28,177
September 30, 2002 1,370 27,471
June 30, 2002 1,373 27,607
March 31, 2002 1,445 28,880
December 31, 2001 1,731 33,442
During 4th
Quarter
Barrels Value
Sales price per barrel
to System companies
Excluding period cost:
#2 Fuel Oil 50,010 32.15
#6 Fuel Oil 24,111 14.20
4. Other Items:
a) As of December 31, 2002, 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 0
Banks 0
-------
TOTAL 34,020
=======
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 4th quarter 2002, SFI was
billed by Entergy Services for the following amounts:
Total
October November December 4th 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 $ 2,830 $ 8,049 $ 6,121 $ 17,000
Other direct cost 1,304 2,428 2,015 5,747
Indirect Cost 752 1,902 1,477 4,131
-------- ------- -------- ---------
TOTAL 4,886 12,379 9,613 26,878
-------- ------- -------- ---------
Cost of services charged
to Service Requests not
Related to transfer of
SFI personnel: 54,921 63,870 130,760 249,551
-------- ------- -------- ---------
Total cost of services
performed by Entergy
Services $ 59,807 $76,249 $140,373 $ 276,429
======== ======= ======== =========
Amounts billed to
Operating Companies for
The Fuel Oil Program* $ 51,753 $53,474 $ 82,129 $187,356
Charged to Nuclear Fuel
Procurement 8,054 22,775 58,244 89,073
-------- ------- -------- ---------
TOTAL $ 59,807 $76,249 $140,373 $276,429
======== ======= ======== =========
* 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 4th quarter of 2002, such
Fuel Oil Program period costs were allocated 9.97% to
ENTERGY ARKANSAS, INC., 48.81% to ENTERGY LOUISIANA, INC.,
29.50% to ENTERGY MISSISSIPPI, INC., and 11.72% 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 23rd of January 2003.
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
Sr. Vice President and
Chief Accounting Officer
SYSTEM FUELS, INC.
BY: /s/ Steven C. McNeal
Steven C. McNeal
Vice President
and Treasurer