[Federal Register Volume 61, Number 130 (Friday, July 5, 1996)]
[Notices]
[Pages 35274-35275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17151]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-26538]


Filings Under the Public Utility Holding Company Act of 1935, as 
amended (``Act'')

June 28, 1996.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated thereunder. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendments thereto is/are available for public 
inspection through the Commission's Office of Public Reference.
    Interested persons wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by July 22, 1996, to the Secretary, Securities and Exchange 
Commission, Washington, D.C. 20549, and serve a copy on the relevant 
applicant(s) and/or declarant(s) at the address(es) specified below. 
Proof of service (by affidavit or, in case of an attorney at law, by 
certificate) should be filed with the request. Any request for hearing 
shall identify specifically the issues of fact or law that are 
disputed. A person who so requests will be notified of any hearing, if 
ordered, and will receive a copy of any notice or other issued in the 
matter. After said date, the application(s) and/or declaration(s), as 
filed or as amended, may be granted and/or permitted to become 
effective.

System Energy Resources, Inc., et al. (70-8511)

    Entergy Corporation (``Entergy''), P.O. Box 61005, New Orleans, 
Louisiana 70161, a registered holding company, and its subsidiary 
companies System Energy Resources, Inc. (``SERI''), Echelon One, 1340 
Echelon Parkway, Jackson, Mississippi 39213; Entergy Arkansas, Inc., 
formerly Arkansas Power & Light Company (``Entergy Arkansas''), P.O. 
Box 551, Little Rock, Arkansas 72203; Entergy Louisiana, Inc., formerly 
Louisiana Power & Light Company (``Entergy Louisiana''), 639 Loyola 
Avenue, New Orleans, Louisiana 70113; Entergy Mississippi, Inc., 
formerly Mississippi Power & Light Company (``Entergy Mississippi''), 
P.O. Box 1640, Jackson, Mississippi 39205; and Entergy New Orleans, 
Inc., formerly New Orleans Public Service Inc. (``Entergy New Orleans'' 
and together with Entergy Arkansas, Entergy Louisiana, and Entergy 
Mississippi, ``Operating Subsidiaries''), 639 Loyola Avenue, New 
Orleans, Louisiana 70113, have filed a post-effective amendment to 
their application-declaration pursuant to Sections 6(a), 7, 9(a), 10, 
12(b) and 12(d) of the Act and Rules 44, 45 and 54 thereunder.
    By orders dated May 9, 1995 (HCAR No. 26287) and August 18, 1995 
(HCAR No. 26358) (``Orders''), the Commission authorized SERI, from 
time to time through December 31, 1996, to (a) issue and sell one or 
more series of its first mortgage bonds (``Bonds'') and one or more 
series of its debentures (``Debentures'') in an aggregate principal 
amount not to exceed $265 million, and (b) enter into arrangements for 
the issuance and sale of tax-exempt revenue bonds (``Tax-Exempt 
Bonds'') in an aggregate principal amount not to exceed $235 million 
through December 31, 1996. The Commission additionally authorized SERI 
through December 31, 1996 to issue and pledge one or more new series of 
its first mortgage bonds (``Collateral Bonds'') in an aggregate 
principal amount not to exceed $251 million as security for the Tax-
Exempt Bonds.
    In the Orders, the Commission reserved jurisdiction over proposals 
by SERI to enter into reimbursement agreements underlying letters of 
credit (``Letters of Credit'') issued to support SERI's obligations in 
connection with the Tax-Exempt Bonds, pending completion of the record.
    SERI proposes to increase its authorization to issue and sell one 
or more series of the Bonds and/or Debentures to a combined aggregate 
principal amount not to exceed $540 million. SERI further proposes to 
increase its authority to incur obligations in connection with the 
issuance and sale of Tax-Exempt Bonds to an aggregate principal amount 
not to exceed $350 million. Also, SERI proposes to increase its 
authority to issue and pledge Collateral Bonds, as security for the 
Tax-Exempt Bonds, to an aggregate principal amount not to exceed $395 
million. SERI requests authority to extend its authorization to enter 
into the above transactions through December 31, 2000.
    All other terms and conditions authorized in the Orders will remain 
the same, other than a change in the up-

[[Page 35275]]

front fees that may be paid for any Letter of Credit to up to one 
percent of the face amount of such Letter of Credit. These terms and 
conditions include, inter alia, assignments by SERI of contractual 
rights held be SERI under certain agreements entered into among SERI, 
Entergy and the Operating Subsidiaries as additional security for 
holders of any series of Bonds or in connection with the issuance of 
Tax-Exempt Bonds.

Entergy Corporation, et al. (70-8863)

    Entergy Corporation (``Entergy''), 639 Loyola Avenue, New Orleans, 
Louisiana 70113, a registered holding company, and Entergy Power 
Marketing Corporation (``EPMC''), 900 South Shackleford Road, Suite 
210, Little Rock, Arkansas 72211, a proposed wholly owned nonutility 
subsidiary company of Entergy, have filed an application-declaration 
under sections 6(a), 7, 9(a), 10, 12(b) and 13(b) of the Act and rules 
45, 54, 87(b)(1), 90 and 91 thereunder.
    Presently, EPMC has an order from the Federal Energy Regulatory 
Commission (``FERC'') certifying it as an exempt wholesale generator 
(``EWG'') in accordance with the requirements of the Act. Entergy, 
which owns 100% of the authorized and issued common stock of EPMC, has 
invested in EPMC and complied with the applicable requirements of 
section 32 and rule 53, of the Act, However, due to the uncertainty 
surrounding the requirement that EWGs be engaged solely and exclusively 
in the business of owning and/or operating eligible facilities and 
selling electric energy at wholesale, EPMC states that it will elect to 
decertify, and not maintain its status as a EWG.
    As a result thereof, Entergy now proposes to finance EPMC, as a 
wholly owned nonutility subsidiary company, and EPMC will engage in 
wholesale brokering and marketing of energy commodities. EPMC will not 
own any utility assets, not will it own or operate any electric or gas 
utility company, as defined under the Act.
    Specifically, EPMC proposes to provide, on behalf of associate and
nonassociate companies, choices to major customers with respect to the 
purchase, sale, borrowing and lending of electricity, natural gas and 
other fuels, and the management of their operations. In connection with 
these activities, EPMC will purchase, sell, supply, market, broker, or 
otherwise trade electricity, gas or other fuels,\1\ provide electricity 
or fuel management services, and engage in activities or perform 
services, related to the foregoing. In addition, EPMC proposes to 
provide instantaneous supply and sales options to electric generators; 
help customers manage price changes in electricity and fuel relative to 
time and location; and assist electric utilities and nonutility 
generators by managing fuel supply and transportation contracts, 
banking electricity until needed and providing price and deliver 
flexibility.\2\
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    \1\ EMPC anticipates that such fuels will include those likely 
to be involved in transactions concerning natural gas, such as oil 
and other hydrocarbons, wood chips, wastes and other combustible 
substances.
    \2\ In the future, EPMC may help electric utilities find the 
best way to meet Clean Air Act requirements through a combination of 
new gas technologies, emission credits, cross-fuel management and 
wholesale electricity purchases and sales.
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    EPMC also anticipates that it may engage in fuel delivery or fuel 
conversion, activities, whereby EPMC would deliver fuel supplies to a 
utility or non-utility generator for the conversion of such fuel into 
electric energy which then would be delivered to EPMC for resale. With 
respect to traditional power brokering activities, EPMC will act as an 
agent or broker for utilities, non-utility generators and other power 
marketers, to effectuate such parties' sales and purchases of electric 
energy at wholesale. With respect to retail activities, the applicants 
request that the Commission reserve jurisdiction pending completion of 
the record.
    In order top finance the above-mentioned activities, Entergy seeks 
authority to make capital contributions to EPMC in an amount up to $20 
million, and to provide up to $150 million in credit support, in the 
form of guarantees, for certain of EPMC's proposed transactions. 
Entergy's investment in EPMC will constitute EPMC's total 
capitalization.
    EPMC proposes to engage in risk management transactions, including 
swaps, options and futures contracts that will assist its customers in 
hedging against adverse price impacts, However, EPMC will employ risk-
reduction measures to limit potential losses that could be incurred 
through its activities. Specifically, EPMC will: (1) Seek to minimize 
the financial exposure of Entergy through its guarantees; and (2) not 
engage in speculative trading in the energy market and will use market 
hedging measures solely to minimize risk and will limit hedging 
activity to no more than the total amount of its commodities subject to 
market price fluctuation.
    EPMC proposes to enter into a service contract with Entergy 
Enterprises, Inc. (``EEI''), whereby EEI will provide EPMC with 
administrative services, including maintaining books and records and 
preparing corporate filings. EEI will provide such services on an at-
cost basis in accordance with rules 90 and 91 of the Act.
    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Jonathan G. Katz,
Secretary.
[FR Doc. 96-17151 Filed 7-3-96; 8:45 am]
BILLING CODE 8010-01-M