Entergy 2009 Annual Report Download - page 116

Download and view the complete annual report

Please find page 116 of the 2009 Entergy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

Entergy Corporation and Subsidiaries
Notes to Financial Statements
112
The cumulative decommissioning and retirement cost liabilities and expenses recorded in 2008 by Entergy
were as follows:
Liabilities as of
December 31, 2007 Accretion
Change in
Cash Flow
Estimate Spending
Liabilities as of
December 31, 2008
(In Millions)
Utility:
Entergy Arkansas $505.6 $35.1 $- $- $540.7
Entergy Gulf States
Louisiana $204.8 $18.1 $- $- $222.9
Entergy Louisiana $257.1 $19.9 ($0.2) $- $276.8
Entergy Mississippi $4.5 $0.3 $- $- $4.8
Entergy New Orleans $2.8 $0.2 $- $- $3.0
Entergy Texas $3.1 $0.2 $- $- $3.3
System Energy $368.6 $27.6 $- $- $396.2
Non-Utility Nuclear $1,141.6 $93.5 $13.7 ($20.1) $1,228.7
Other $1.1 $0.1 $- $- $1.2
Entergy periodically reviews and updates estimated decommissioning costs. The actual decommissioning costs may
vary from the estimates because of regulatory requirements, changes in technology, and increased costs of labor,
materials, and equipment. As described below, during 2008 and 2009 Entergy updated decommissioning cost
estimates for certain nuclear power plants.
In the first quarter 2009, Entergy Arkansas recorded a revision to its estimated decommissioning cost
liabilities for ANO 1 and 2 as a result of a revised decommissioning cost study. The revised estimates resulted in an
$8.9 million reduction in its decommissioning liability, along with a corresponding reduction in the related regulatory
asset.
In the second quarter 2009, System Energy recorded a revision to its estimated decommissioning cost
liabilities for Grand Gulf as a result of a revised decommissioning cost study. The revised estimate resulted in a $4.2
million reduction in its decommissioning liability, along with a corresponding reduction in the related regulatory
asset.
In the fourth quarter 2009, Entergy Gulf States Louisiana recorded a revision to its estimated
decommissioning cost liabilities for River Bend as a result of a revised decommissioning cost study. The revised
estimate resulted in a $78.7 million increase in its decommissioning liability, along with a corresponding increase in
the related asset retirement obligation asset that will be depreciated over the remaining life of the units.
In the third quarter 2008, Entergy's Non-Utility Nuclear business recorded an increase of $13.7 million in
decommissioning liabilities for certain of its plants as a result of revised decommissioning cost studies. The revised
estimates resulted in the recognition of a $13.7 million asset retirement obligation asset that will be depreciated over
the remaining life of the units.
For the Indian Point 3 and FitzPatrick plants purchased in 2000, NYPA retained the decommissioning trusts
and the decommissioning liability. NYPA and Entergy executed decommissioning agreements, which specify their
decommissioning obligations. NYPA has the right to require Entergy to assume the decommissioning liability
provided that it assigns the corresponding decommissioning trust, up to a specified level, to Entergy. If the
decommissioning liability is retained by NYPA, Entergy will perform the decommissioning of the plants at a price
equal to the lesser of a pre-specified level or the amount in the decommissioning trusts. Entergy recorded an asset
representing its estimate of the present value of the difference between the stipulated contract amount for
114