Entergy 2009 Annual Report Download - page 108

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
104
Although the principal amount of each tranche is not due until the dates given above, Entergy Gulf States
Reconstruction Funding expects to make principal payments on the bonds over the next five years in the amounts of
$18.6 million for 2010, $19.7 million for 2011, $20.8 million for 2012, $21.9 million for 2013, and $23.2 million for
2014. All of the scheduled principal payments for 2010-2012 are for Tranche A-1, except for $2.3 million for
Tranche A-2 in 2012, and all of the scheduled principal payments for 2013-2014 are for Tranche A-2.
With the proceeds, Entergy Gulf States Reconstruction Funding purchased from Entergy Texas the transition
property, which is the right to recover from customers through a transition charge amounts sufficient to service the
securitization bonds. Entergy Texas began cost recovery through the transition charge in July 2007. The creditors of
Entergy Texas do not have recourse to the assets or revenues of Entergy Gulf States Reconstruction Funding,
including the transition property, and the creditors of Entergy Gulf States Reconstruction Funding do not have
recourse to the assets or revenues of Entergy Texas. Entergy Texas has no payment obligations to Entergy Gulf
States Reconstruction Funding except to remit transition charge collections.
Entergy Texas Securitization Bonds - Hurricane Ike and Hurricane Gustav
In September 2009 the PUCT authorized the issuance of securitization bonds to recover $566.4 million of
Entergy Texas' Hurricane Ike and Hurricane Gustav restoration costs, plus carrying costs and transition costs, offset
by insurance proceeds. In November 2009, Entergy Texas Restoration funding, LLC (Entergy Texas Restoration
Funding), a company wholly-owned and consolidated by Entergy Texas, issued $545.9 million of senior secured
transition bonds (securitization bonds), as follows:
Amount
(In Thousands)
Senior Secured Transition Bonds
Tranche A-1 (2.12%) due February 2016 $182,500
Tranche A-2 (3.65%) due August 2019 144,800
Tranche A-3 (4.38%) due November 2023 218,600
Total senior secured transition bonds $545,900
Although the principal amount of each tranche is not due until the dates given above, Entergy Texas Restoration
Funding expects to make principal payments on the bonds over the next five years in the amount of $12.7 million for
2010, $37.8 million for 2011, $38.6 million for 2012, $39.4 million for 2013, and $40.2 million for 2014. All of the
expected principal payments for 2010-2014 are for Tranche A-1.
With the proceeds, Entergy Texas Restoration Funding purchased from Entergy Texas the transition
property, which is the right to recover from customers through a transition charge amounts sufficient to service the
securitization bonds. Entergy Texas expects to use the proceeds to reduce debt. The creditors of Entergy Texas do
not have recourse to the assets or revenues of Entergy Texas Restoration Funding, including the transition property,
and the creditors of Entergy Texas Restoration Funding do not have recourse to the assets or revenues of Entergy
Texas. Entergy Texas has no payment obligations to Entergy Texas Restoration Funding except to remit transition
charge collections.
106