Entergy 2009 Annual Report Download - page 119

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
115
Lease payments are based on nuclear fuel use. The table below represents the total nuclear fuel lease
payments (principal and interest), as well as the separate interest component charged to operations, in 2009, 2008,
and 2007 for the four Registrant Subsidiaries that own nuclear power plants:
2009 2008 2007
Lease
Payments Interest
Lease
Payments Interest
Lease
Payments Interest
(In Millions)
Entergy Arkansas $79.5 $8.1 $63.5 $4.7 $61.7 $5.8
Entergy Gulf States Louisiana 33.9 1.9 29.3 2.5 31.5 2.8
Entergy Louisiana 50.0 3.3 44.6 3.0 44.2 4.0
System Energy 50.3 5.4 33.0 2.9 30.4 4.0
Total $213.7 $18.7 $170.4 $13.1 $167.8 $16.6
Sale and Leaseback Transactions
Waterford 3 Lease Obligations
In 1989, in three separate but substantially identical transactions, Entergy Louisiana sold and leased back
undivided interests in Waterford 3 for the aggregate sum of $353.6 million. The interests represent approximately
9.3% of Waterford 3. The leases expire in 2017. Under certain circumstances, Entergy Louisiana may repurchase
the leased interests prior to the end of the term of the leases. At the end of the lease terms, Entergy Louisiana has the
option to repurchase the leased interests in Waterford 3 at fair market value or to renew the leases for either fair
market value or, under certain conditions, a fixed rate.
Entergy Louisiana issued $208.2 million of non-interest bearing first mortgage bonds as collateral for the
equity portion of certain amounts payable under the leases.
Upon the occurrence of certain events, Entergy Louisiana may be obligated to assume the outstanding bonds
used to finance the purchase of the interests in the unit and to pay an amount sufficient to withdraw from the lease
transaction. Such events include lease events of default, events of loss, deemed loss events, or certain adverse
"Financial Events." "Financial Events" include, among other things, failure by Entergy Louisiana, following the
expiration of any applicable grace or cure period, to maintain (i) total equity capital (including preferred membership
interests) at least equal to 30% of adjusted capitalization, or (ii) a fixed charge coverage ratio of at least 1.50
computed on a rolling 12 month basis. As of December 31, 2009, Entergy Louisiana was in compliance with these
provisions.
117