Entergy 2009 Annual Report Download - page 115

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
111
These liabilities are recorded at their fair values (which are the present values of the estimated future cash
outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the long-
lived asset. The asset retirement obligation is accreted each year through a charge to expense, to reflect the time
value of money for this present value obligation. The accretion will continue through the completion of the asset
retirement activity. The amounts added to the carrying amounts of the long-lived assets will be depreciated over the
useful lives of the assets. The application of accounting standards related to asset retirement obligations is earnings
neutral to the rate-regulated business of the Registrant Subsidiaries.
In accordance with ratemaking treatment and as required by regulatory accounting standards, the
depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset
retirement obligations under accounting standards. In accordance with regulatory accounting principles, the
Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates
of the difference between estimated incurred removal costs and estimated removal costs recovered in rates:
December 31,
2009 2008
(In Millions)
Entergy Arkansas ($7.3) $5.9
Entergy Gulf States Louisiana ($7.5) ($3.6)
Entergy Louisiana ($21.7) ($43.5)
Entergy Mississippi $44.5 $40.0
Entergy New Orleans $15.2 $15.4
Entergy Texas $7.2 $34.7
System Energy $13.9 $14.5
The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2009 by Entergy
were as follows:
Liabilities as of
December 31, 2008 Accretion
Change in
Cash Flow
Estimate Spending
Liabilities as of
December 31, 2009
(In Millions)
Utility:
Entergy Arkansas $540.7 $34.6 ($8.9) $- $566.4
Entergy Gulf States
Louisiana $222.9 $19.6 $78.7 $- $321.2
Entergy Louisiana $276.8 $21.4 $- $- $298.2
Entergy Mississippi $4.8 $0.3 $- $- $5.1
Entergy New Orleans $3.0 $0.2 $- $- $3.2
Entergy Texas $3.3 $0.1 $- $- $3.4
System Energy $396.2 $29.4 ($4.2) $- $421.4
Non-Utility Nuclear $1,228.7 $99.3 $- ($8.5) $1,319.5
Other $1.2 $- $- ($0.1) $1.1
113