UNITED STATES OF AMERICA

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 forth quarter ended December 31, 2003 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 2003 during the 4th quarter are indicated below:

 

 

Net Expenditures
(In Thousands)

 

4th Quarter

Year-To-Date

2003 Fuel Supply Program:

 

 

1. Gas and Oil Development
    and Production
 

 
$       0 

 
$      578 

2. Nuclear Fuel Procurement

   9,147 

   2,443 

3. Fuel Oil Program

  (6,235)

   13,930 

 

 

 

TOTAL EXPENDITURES

   2,912 

  16,951 

 

 

 

Less funds derived through

 

 

  Amortization & depreciation

 

 

  Charges

 

 

Amortization of Gas & Oil

 

 

  Development & Production Costs

        0 

       0 

Depreciation & Other

 

 

  Amortization

        0 

       2 

 

 

 

TOTAL depreciation & amortization

        0 

       2 

 

 

 

Net Expenditures

  2,912 

  16,953 

 

 

 

(Increase) decrease in:

 

 

  Outside financing

 

 

  System Money Pool borrowings

   52,421 

  27,212 

 

 

 

TOTAL (increase)decrease

 

 

  in borrowings

   52,421 

  27,212 

 

 

 

Increase (decrease) in working

 

 

 Capital

$ (55,333)

  $(44,165)

 

 

 

1. Gas and Oil Development and

 

 

    Production

 

 

 

Net Expenditures
(In Thousands)

 

4thquarter

Year-To-Date

Gas and Oil Development

 

 

  and Production

$        0 

$        578

 

 

 

   

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 December 31, 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
(In Thousands)

 

4thQuarter

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
(In Thousands)

 

4thQuarter

Year-To-Date

Nuclear Fuel Procurement

$  9,147

$  2,443

 

 

 

 

 

 

 

Net Expenditures
(In Thousands)

 

4thQuarter

Year-To-Date

Activities during the period:

 

 

  Expenditures for nuclear

 

 

   Materials and processing

 

 

   Services

$29,784

$86,035

  General and administrative

 

 

   Expense

    109

    332

  Interest expense

     74

    438

 

 

 

TOTAL

29,967

86,805

Sales of nuclear materials and

 

 

  Processing services to

 

 

  System companies

  20,820

  84,363

 

 

 

Net effect on inventory

$ 9,147

$  2,442


3.  Fuel Oil Program

 

 

   

 

 

Net Expenditures
(In Thousands)

 

4thQuarter

Year-To-Date

Fuel Oil Inventory

$  (6,235)

$ 15,684

 

 

 

a)  Fuel Oil Inventory:

 

 

 

Barrels

Book Value

Inventory as of:

(In Thousands)

 

 

 

 

 

 

  December 31, 2003

  1,622

43,861

  September 30, 2003

  1,762

49,475

  June 30, 2003

  1,659

50,172

  March 31, 2003

  1,464

51,586

  December 31, 2002

  1,382

28,177

 

 

 

 

 

 

 

During 4th
Quarter

 

 

Barrels

Value

Sales price per barrel

 

 

  to System companies

 

 

  Excluding period cost:

 

 

    #2 Fuel Oil

   22,458

   38.42

    #6 Fuel Oil

  941,724

   26.91

 

 

 

 

4. Other Items:

    a) As of December 31,2003, 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

(27,212)

Banks

      0 

 TOTAL

6,808 

 

 

 

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 of 2003, SFI was billed by Entergy Services for the following amounts:


 

 
October

 
November

 
December

Total
4thQtr

Cost of service charged

 

 

 

 

to Service Requests

 

 

 

 

established to track

 

 

 

 

cost of functions

 

 

 

 

previously performed by

 

 

 

 

SFI personnel:

 

 

 

 

 

 

 

 

 

  Direct Cost:

 

 

 

 

   Labor and related

 

 

 

 

    Cost

$  8,889

$  4,975

$  4,328

$  18,192

   Other direct cost

   4,389

   3,237

   2,639

   10,265

  Indirect Cost

   3,620

   2,143

  (1,648)

    4,115

        TOTAL

  16,898

  10,355

   5,319

   32,572

 

 

 

 

 

Cost of services charged

 

 

 

 

to Service Requests not

 

 

 

 

Related to transfer of

 

 

 

 

SFI personnel:

  64,331

  52,553

  120,500

  237,384

 

 

 

 

 

Total cost of services

 

 

 

 

performed by Entergy

 

 

 

 

Services

$ 81,229

$ 62,908

$ 125,819

$ 269,956

 

 

 

 

 

Amounts billed to

 

 

 

 

Operating Companies for

 

 

 

 

The Fuel Oil Program*

$ 64,675

$ 46,623

$  92,102

$ 203,400

 

 

 

 

 

Charged to Nuclear Fuel

 

 

 

 

Procurement

  16,554

  16,285

   33,717

   66,556

 

 

 

 

 

TOTAL

$ 81,229

$ 62,908

$ 125,819

$ 269,956

 

 

 

 

 

 

* 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 2003, such Fuel Oil Program period costs were allocated 9.77% to ENTERGY ARKANSAS, INC., 50.43% to ENTERGY LOUISIANA, INC., 28.12% to ENTERGY MISSISSIPPI, INC., and 11.68% 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 31st of January 2004.

 

                                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
                                 Senior Vice President and
                                  Chief Accounting Officer



                                SYSTEM FUELS, INC.

 

                                BY:  /s/ Steven C. McNeal
                                      Steven C. McNeal
                                  Vice President and Treasurer