[Federal Register Volume 65, Number 80 (Tuesday, April 25, 2000)]
[Notices]
[Pages 24233-24234]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10226]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-27167]


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

April 18, 2000.
    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 under the Act. 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 amendment(s) is/are available for public 
inspection through the Commission's Branch 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 May 12, 2000, to the Secretary, Securities and Exchange 
Commission, Washington, DC 20549-0609, 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 the case of an attorney at law, 
by certificate) should be filed with the request. Any request for 
hearing should identify specifically the issues of facts 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 order issued in 
the matter. After May 12, 2000, the application(s) and/or 
declaration(s), as filed or as amended, may be granted and/or permitted 
to become effective.

Entergy Arkansas, Inc. (70-7571)

    Entergy Arkansas, Inc. (``Arkansas''), 425 West Capitol Avenue, 
Little Rock, Arkansas 72201, a wholly owned electric utility subsidiary 
company of Entergy Corporation, a registered holding company, has filed 
a post-effective amendment to its application-declaration under 
sections 6(a), 7, 9(a) and 10 of the Act and rule 54 under the Act.
    By prior Commission orders dated January 24, 1996, July 7, 1989 and 
December 20, 1988 (HCAR Nos. 26461, 24917 and 24787, respectively) 
(collectively, ``Orders''), Arkansas was authorized to enter into and 
amend a Fuel Lease originally dated December 22, 1988 (``Lease''), with 
River Fuel Funding Company #1, Inc. (``River Fuel''), under which 
Arkansas leases nuclear fuel required for use at its Grand Gulf Nuclear 
Generating Station. Under the terms of the Lease, Arkansas makes 
periodic lease payments to River Fuel based on the nuclear fuel 
consumption rate and the unamortized cost of the nuclear fuel, 
including financing costs (``Lease Payments'').
    River Fuel originally financed its acquisition of nuclear fuel 
leased to Arkansas through, among other things, borrowings under a 
credit agreement dated December 22, 1988 (as amended, ``Credit 
Agreement'') with Union Bank of Switzerland (``Bank''). In the Orders, 
the Commission imposed limits on certain fees and rates applicable to 
borrowings under the Credit Agreement that were incorporated in the 
Lease Payments.
    Specifically, under the terms of the Credit Agreement, River Fuel 
is currently required to pay: (1) A commitment fee of \1/4\ of one 
percent per annum on the daily difference between the maximum 
commitment under the Credit Agreement and the amount of commercial 
paper and revolving credit borrowings outstanding; (2) a letter of 
credit fee of .00625 percent per annum on the average aggregate amount 
of commercial paper outstanding during each calendar quarter; and (3) 
an administrative fee of $20,000 per year.
    In addition, at the election of River Fuel, each revolving credit 
borrowing under the Credit Agreement currently bears interest at 
either: (a) the higher of (i) the rate publicly announced by the Bank 
from time to time as its prime rate,

[[Page 24234]]

and (ii) the rate quoted by the Bank to dealers in the New York federal 
funds market for the overnight offering of Dollars by the Bank, plus 
\1/4\ of one percent (``Prime Rate Loan''); or (b) .00625 percent in 
excess of the rate at which deposits in U.S. Dollars are offered to the 
Bank in the London interbank market (``LIBOR Rate Loan''); provided, 
however, that if any drawings under letters of credit supporting 
commercial paper issued under the Credit Agreement are not repaid on 
the date of such drawings, those drawings will automatically be 
converted into Prime Rate Loans.
    Due to changes in the credit markets that have occurred since the 
execution of the Credit Agreement, Arkansas now proposes to consent to 
River Fuel agreeing to make certain adjustments to terms and conditions 
that may be required in connection with any extensions of the Credit 
Agreement or any new credit agreements to be entered into by River Fuel 
replacing the Credit Agreement.
    In particular, Arkansas proposes to consent to River Fuel agreeing 
to pay: (1) Commitment fees not exceeding a specified maximum rate 
greater than two percent per annum on the daily difference between the 
maximum commitment under the Credit Agreement and the amount of 
commercial paper and revolving credit borrowings outstanding; (2) a 
letter of credit fee not exceeding a specified maximum rate greater 
than five percent per annum on the average aggregate amount of 
commercial paper outstanding during each calendar quarter; and (3) an 
administrative fee not exceeding $100,000.
    Arkansas further proposes to consent to River Fuel obtaining Prime 
Rate Loans and LIBOR Rate Loans bearing interest at rates not in excess 
of those rates generally obtainable at the time for loans having the 
same or reasonably similar maturities, obtained by companies of the 
same or reasonably comparable credit quality and having reasonably 
similar terms, conditions and features.

System Energy Resources, Inc. (70-7604)

    System Energy Resources, Inc. (``SERI''), 1340 Echelon Parkway, 
Jackson, Mississippi 39213, a wholly owned electric utility subsidiary 
company of Entergy Corporation, a registered holding company, has filed 
a post-effective amendment to its application-declaration under 
sections 6(a), 7, 9(a) and 10 of the Act and rule 54 under the Act.
    By prior Commission orders dated January 24, 1996, July 7, 1989, 
February 23, 1989 and February 21, 1989 (HCAR Nos. 26459, 24919, 24827 
and 24825, respectively) (collectively, ``Orders''), SERI was 
authorized to enter into and amend a Fuel Lease originally dated 
February 24, 1989 (``Lease''), with River Fuel Funding Company #3, Inc. 
(``River Fuel''), under which SERI leases nuclear fuel required for use 
at its Grand Gulf Nuclear Generating Station. Under the terms of the 
Lease, SERI makes periodic lease payments to River Fuel based on the 
nuclear fuel consumption rate and the unamortized cost of the nuclear 
fuel, including financing costs (``Lease Payments'').
    River Fuel originally financed its acquisition of nuclear fuel 
leased to SERI through, among other things, borrowings under a credit 
agreement dated February 24, 1989 (as amended, ``Credit Agreement'') 
with Union Bank of Switzerland (``Bank''). In the Orders, the 
Commission imposed limits on certain fees and rates applicable to 
borrowings under the Credit Agreement that were incorporated in the 
Lease Payments.
    Specifically, under the terms of the Credit Agreement, River Fuel 
is currently required to pay: (1) A commitment fee of .00375 percent 
per annum on the daily difference between the maximum commitment under 
the Credit Agreement and the amount of commercial paper and revolving 
credit borrowings outstanding; (2) a letter of credit fee of .00775 
percent [per annum  on the average aggregate amount of commercial paper 
outstanding during each calendar quarter; and (3) an administrative fee 
of $20,000 per year.
    In addition, at the election of River Fuel, each revolving credit 
borrowing under the Credit Agreement currently bears interest at 
either: (a) The higher of (i) the rate publicly announced by the Bank 
from time to time as its prime rate, and (ii) the rate quoted by the 
Bank to dealers in the New York federal funds market for the overnight 
offering of Dollars by the Bank, plus \1/4\ of one percent (``Prime 
Rate Loan''); or (b) .00775 percent in excess of the rate at which 
deposits in U.S. Dollars are offered to the Bank in the London 
interbank market (``LIBOR Rate Loan''); provided, however, that if any 
drawings under letters of credit supporting commercial paper issued 
under the Credit Agreement are not repaid on the date of such drawings, 
those drawings will automatically be converted into Prime Rate Loans.
    Due to changes in the credit markets that have occurred since the 
execution of the Credit Agreement, SERI now proposes to consent to 
River Fuel agreeing to make certain adjustments to terms and conditions 
that may be required in connection with any extensions of the Credit 
Agreement or any new credit agreements to be entered into by River Fuel 
replacing the Credit Agreement.
    In particular, SERI proposes to consent to River Fuel agreeing to 
pay: (1) Commitment fees not exceeding a specified maximum rate greater 
than two percent per annum on the daily difference between the maximum 
commitment under the Credit Agreement and the amount of commercial 
paper and revolving credit borrowings outstanding; (2) a letter of 
credit fee not exceeding a specified maximum rate greater than five 
percent per annum on the average aggregate amount of commercial paper 
outstanding during each calendar, quarter; and (3) an administrative 
fee not exceeding $100,000.
    SERI further proposes to consent to River Fuel obtaining Prime Rate 
Loans and LIBOR Rate Loans bearing interest at rates not in excess of 
those rates generally obtainable at the time for loans having the same 
or reasonably similar maturities, obtained by companies of the same or 
reasonably comparable credit quality and having reasonably similar 
terms, conditions and features.

    For the Commission by the Division of Investment Management, 
under delegated authority.

Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-10226 Filed 4-24-00; 8:45 am]
BILLING CODE 8010-01-M