Exhibit 10(a)13
Amendment To
Service Agreement
The parties hereto do hereby stipulate and agree to that the
SERVICE AGREEMENT entered into by and between them under
date of April 1, 1963, and as heretofore amended on January
1, 1972, April 27, 1984, August 1, 1988, January 28, 1991,
January 1, 1992, January 1, 1996, January 1, 1998, January
1, 1999 and January 1, 2000 be and the same hereby is
further amended by substituting for the Supplement to
Exhibit II to the SERVICE AGREEMENT, the attached revised
Supplement to Exhibit II. This Amendment is made and
entered into as of January 1, 2001.
ENTERGY SERVICES, INC.
By /s/ Xxxxxx X. Xxxxxxxx
Vice President and Chief Accounting Officer
ENTERGY CORPORATION
By Xxxxxx Xxxxx
President
Exhibit B
ALLOCATION FORMULAE FOR
GROUPS OF CLIENT COMPANIES
Exhibit II, Supplement
Note: Each allocation formula will be based on data
relevant to participating Client Companies to whom
the services are provided.
ENERGY SALES
Based on total kilowatt-hours of energy sold to consumers.
Used primarily for the allocation of costs associated with
the financial analyses of sales and related items.
CUSTOMERS
Based on a twelve-month average of residential, commercial,
industrial, government, and municipal general business
electric and gas customers.
Used primarily for the allocation of costs associated with
the support of customer based services. Would include
customer service and support, marketing, economic forecasts,
environmental services, financial and regulatory analyses
and customer information systems.
EMPLOYEES
Based on the number of full-time employees at period end.
Used primarily for the allocation of costs associated with
the support of employee-based services. Would include
administration of employee benefits programs, employee
communications, employee training, various facilities-based
benefits and information technology desktop support.
RESPONSIBILITY RATIO
Based on the ratio of the company's load at time of system
peak load. The peak load is the average of the twelve
monthly highest clock-hour demands in kilowatts of the
interconnected system occurring each month coincident with
the system peak load.
Used primarily for the allocation of costs incurred in
fossil plant support and integrated planning.
COMPOSITE - TRANSMISSION, DISTRIBUTION/CUSTOMER SERVICE
Based on four components of equal weighting: kilowatt-hour
energy sales; average customers; number of distribution and
customer service/support employees; and the
Transmission/Substation Composite Allocation Method.
Used primarily for the allocation of costs incurred in the
support of the overall transmission and distribution system
of Entergy's Operating Companies. These costs are related
to sales, transmission lines or substations, customers or
customer service/support employees.
TRANSMISSION LINE MILES
Based on the number of miles of transmission lines, weighted
for design voltage (Voltage < 400kv = 1; Voltage >=400kv
=2).
Used primarily for the allocation of costs associated with
project design, maintenance and installation of Entergy
transmission lines.
SUBSTATIONS
Based on the number of high voltage substations weighted for
Voltage (Voltage < 500kv = 1; Voltage >= 500kv = 2).
Used primarily for the allocation of related engineering and
technical support for transmission and distribution
substation operations and maintenance as well as for
engineering and project management associated with
substation construction.
COMPOSITE - TRANSMISSION LINES/SUBSTATIONS
Based on two components: Transmission Line Miles (30%
weighting) and the Number of High Voltage Substations (70%
weighting).
Used primarily for the allocation of the costs associated
with the support of the transmission and distribution
function that have both a transmission line component as
well as a substation or load component.
GAS CONSUMPTION
Based on the volume of natural gas consumed annually by all
gas fired generating units within the Entergy System.
Used for the allocation of costs associated with services in
support of gas purchased for gas fired generation units.
TAX INCOME AND DEDUCTION RATIO
Based on the prior years' Federal Income Tax return, total
Income and Deductions.
Used for the allocation of costs associated with the
preparation of consolidated Federal income tax returns and
research of Federal tax issues.
LEVEL OF ESI SERVICE
Based on ESI total xxxxxxxx to each System company,
excluding corporate overhead.
Used for the allocation of costs associated with support of
ESI as a legal entity.
SYSTEM CAPACITY (NON-NUCLEAR)
Based on the power level, in kilowatts, that could be
achieved if all non-nuclear generating units were operating
at maximum capability simultaneously.
Used primarily for the allocation of costs associated with
the support of the fossil operations of the System. This
would include services provided by plant support,
environmental and purchasing.
LABOR DOLLARS BILLED
Based on total labor dollars billed to each company.
Used primarily to allocate the costs associated with
employee benefits plans, payroll taxes, departmental
indirect costs and performance based compensation plans for
ESI employees.
DISTRIBUTION LINE MILES
Based on the number of miles of distribution lines of 34.5kv
or less.
Used primarily for the allocation of costs associated with
project design, maintenance and installation of Entergy
distribution lines.
COAL CONSUMPTION
Based on the quantity of tons of coal delivered for a twelve
month period to each coal plant within the Entergy System.
Used for the allocation of costs associated with services in
support of coal purchased for coal generating units
ACCOUNTS PAYABLE TRANSACTIONS
Based on the number of accounts payable transactions
processed annually for each Entergy System Company.
Used for the allocation of costs associated with the support
of the accounts payable function.
SQUARE FOOTAGE
Based on square footage occupied by ESI functional business
units.
Used primarily to allocate the costs associated with
facilities supervision and support.
INSURANCE PREMIUMS (NON-NUCLEAR)
Based on non-nuclear insurance premiums.
Used for the allocation of costs associated with risk
management.
ASSET RECORDS
Based on the number of asset records at period end.
Used for the allocation of costs associated with the fixed
asset accounting function.
AVERAGE OUTSTANDING CAPITAL EXPENDITURE AUTHORIZATIONS
(CEA'S)
Based on a twelve-month average of outstanding CEA's and
SJO's.
Used for the allocation of costs associated with the capital
project costing accounting function.
TOTAL ASSETS
Based on total assets at period end.
Used primarily to allocate costs associated with the
oversight and safeguarding of corporate assets. This would
include services provided by financial management and
certain finance functions, among others. Also used when the
services provided are driven by the relative size and
complexity of the System Companies and there is no
functional relationship between the services and any other
available allocation formula.
BANK ACCOUNTS
Based on the number of bank accounts at period end.
Used for the allocation of costs associated with daily cash
management activities.
COMPUTER USAGE COMPOSITE
Based on three components: Customers (52% weighting),
General Ledger Transactions (29% weighting) and Employees
(19% weighting), with weighting based on historical usage.
Used primarily for the allocation of costs associated with
the mainframe computer, unix servers and related database
administration.
GENERAL LEDGER TRANSACTIONS
Based on the number of general ledger transactions for the
period.
Used primarily for the allocation of costs associated with
general ledger activities, including related information
systems, and for general accounting activities.
TRANSITION TO COMPETITION
Based on a twelve-month average of residential, commercial,
industrial, government, and municipal general business of
gas and/or electric customers.
Used primarily for the allocation of costs associated with
the management support of the Entergy System's strategy for
and transition to competition.
TELEPHONES
Based on the number of telephones within each Legal Entity
at period end.
Used for the allocation of costs associated with maintenance
and support of telephones.
FIBER
Based on capacity and use of the Entergy System's fiber
optic network.
Used primarily for the allocation of fiber optic operations
and maintenance expenses.
NUCLEAR UNITS
Based on the number of nuclear units managed and operated by
each Entergy System Company.
Used primarily to allocate nuclear fuel-related services.
NUCLEAR SITES
Based on the number of nuclear sites managed and operated by
each Entergy System Company.
Used to allocate miscellaneous nuclear-related services.
CALL CENTERS
Based on the number of customer calls for each Legal Entity
at period end.
Used for the allocation of costs associated with customer
service support centers.
ACCOUNTS RECEIVABLE INVOICES
Based on the number of accounts receivable invoices
processed annually for each Entergy System Company.
Used for the allocation of costs associated with the support
of the accounts receivable function.
PROPERTY AND LIABILITY PAID LOSSES
Based on a five-year annual average of the property and
liability losses paid by the system companies.
Used for the allocation of costs associated with the
operation and maintenance of the Risk Information System.
COMPOSITE- SUPPLY CHAIN (Number of Transactions, Stockroom
Count and Procurement Total Spending
Based on three components with weighting to each: number of
transactions (37.5%), stockroom count (37.5%), and
procurement total spending (25%).
Used for the allocation of costs associated with the
management and operations of the materials management and
work order processing system.
SUPPLY CHAIN - Inventory Management Fossil, Transmission &
Distribution Issues, Transfers & Returns
Based on the number of issues, transfer & return
transactions for each Legal Entity at period end.
Used for the allocation of costs associated with the
management and operations of investment recovery, including
Fossil, but excluding Nuclear.
SUPPLY CHAIN - Procurement Total Spending
Based on the dollar amount of procurement spending within
each Legal Entity at period end.
Used for the allocation of costs associated with procurement
activities for the Entergy System.
