Entergy 2007 Annual Report Download - page 79

77
Entergy Corporation and Subsidiaries 2007
Notes to Consolidated Financial Statements continued
Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana,
Entergy Mississippi, and Entergy Texas each had credit facilities
available as of December 31, 2007 as follows (except for the Entergy
Texas facility, which is expected to become available in March 2008
aer the fulllment of certain closing conditions) (in millions):
Company
Expiration
Date
Amount of
Facility
Interest
Rate(a)
Amount
Drawn as of
Dec. 31, 2007
Entergy Arkansas April 2008 $100 6.75% –
Entergy Gulf
States Louisiana August 2012 $100 5.025% –
Entergy Louisiana August 2012 $200 4.96% –
Entergy
Mississippi May 2008 $ 30 5.85% –
Entergy
Mississippi May 2008 $ 20 5.85% –
Entergy Texas August 2012 $100 5.025% –
(a) The interest rate is the weighted average interest rate as of December
31, 2007 that would be applied to the outstanding borrowings under
the facility.
(b) The credit facility requires Entergy Arkansas to maintain a total
shareholders’ equity of at least 25% of its total assets.
(c) The credit facility allows Entergy Gulf States Louisiana to issue letters
of credit against the borrowing capacity of the facility. As of December
31, 2007, no letters of credit were outstanding. The credit facility also
requires Entergy Gulf States Louisiana to maintain a consolidated debt
ratio of 65% or less of its total capitalization.
(d) The credit facility allows Entergy Louisiana to issue letters of credit
against the borrowing capacity of the facility. As of December 31,
2007, no letters of credit were outstanding.
(e) Borrowings under the Entergy Mississippi credit facilities may be
secured by a security interest in its accounts receivable.
(f) The credit facility allows Entergy Texas to issue letters of credit against
the borrowing capacity of the facility. As of December 31, 2007, no let-
ters of credit were outstanding. The credit facility also requires Entergy
Texas to maintain a consolidated debt ratio of 65% or less of its total
capitalization.
e facility fees on the credit facilities range from 0.09% to 0.15% of
the commitment amount.
In August 2007, Entergy Gulf States, Inc. entered into a $200
million, 5-year bank credit facility, with the ability to issue letters
of credit against the facility. As of December 31, 2007, the Entergy
Gulf States, Inc. credit facility split into the two separate credit
facilities shown above, a $100 million credit facility available to
Entergy Gulf States Louisiana and a $100 million credit facility
available to Entergy Texas.
e short-term borrowings of the Registrant Subsidiaries and
certain other Entergy subsidiaries are limited to amounts authorized
by the FERC. e current FERC-authorized limits are eective
through March 31, 2008 (except Entergy New Orleans, which is
eective through May 4, 2009, and Entergy Gulf States Louisiana and
Entergy Texas, which are eective through November 8, 2009). In
January 2008, Entergy led an application with the FERC to extend
the authorization period for its current short-term borrowing limits
and money pool borrowing arrangement until March 2010 (except
for Entergy Gulf States Louisiana). In addition to borrowings from
commercial banks, these companies are authorized under a FERC
order to borrow from the Entergy System money pool. e money
pool is an inter-company borrowing arrangement designed to reduce
Entergy’s subsidiaries’ dependence on external short-term borrowings.
Borrowings from the money pool and external borrowings combined
may not exceed the FERC authorized limits. As of December 31, 2007,
Entergy’s subsidiaries’ aggregate money pool and external short-term
borrowings authorized limit was $2.1 billion, the aggregate outstanding
borrowing from the money pool was $346.1 million, and Entergy’s
subsidiaries’ had no outstanding borrowings from external sources.
EN T E R G Y NE W OR L E A N S DE B T O R -IN-PO S S E S S I O N
CR E D I T FACILITY
On September 26, 2005, Entergy New Orleans, as borrower, and
Entergy Corporation, as lender, entered into a debtor-in-possession
credit facility to provide funding to Entergy New Orleans during its
business restoration eorts. e credit facility provided for up to $200
million in loans. e interest rate on borrowings under the credit
facility was the average interest rate of borrowings outstanding under
Entergy Corporation’s revolving credit facility. With the conrmation
of Entergy New Orleans’ plan of reorganization in May 2007, Entergy
New Orleans repaid to Entergy Corporation, in full, in cash, the $67
million of outstanding borrowings under the debtor-in-possession
credit facility.
(b)
(c)
(d)
(e)
(e)
(f)