Entergy 2009 Annual Report Download - page 139

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
135
NOTE 14. EQUITY METHOD INVESTMENTS
As of December 31, 2009, Entergy owns investments in the following companies that it accounts for under
the equity method of accounting:
Investment Ownership Description
Entergy-Koch 50% partnership
interest
Entergy-
Koch was in the energy commodity marketing and
trading business and gas transportation and storage business
until the fourth quarter 2004 when these businesses were
sold. In December 2009, Entergy reorg
anized its investment
in Entergy-
Koch, received a $25.6 million cash distribution,
and received a distribution of certain software owned by the
joint venture.
RS Cogen LLC 50% member
interest
Co-generation project that produces power and steam on
an
industrial and merchant basis in the Lake Charles, Louisiana
area.
Top Deer 50% member
interest
Wind-powered electric generation joint venture.
Following is a reconciliation of Entergy's investments in equity affiliates:
2009 2008 2007
(In Thousands)
Beginning of year $66,247 $78,992 $229,089
Entergy New Orleans (a) - -(153,988)
Income (loss) from the investments (7,793) (11,684) 3,176
Dispositions and other adjustments (18,874) (1,061) 715
End of year $39,580 $66,247 $78,992
(a)
As a result of Entergy New Orleans' bankruptcy filing in September 2005, Entergy
deconsolidated Entergy New Orleans and reflected Entergy New Orleans' financial results
under the equity method of accounting retro
active to January 1, 2005. In May 2007, with
confirmation of the plan of reorganization, Entergy reconsolidated Entergy New Orleans
retroactive to January 1, 2007 and no longer accounts for Entergy New Orleans under the
equity method of accounting. See N
ote 18 to the financial statements for further discussion of
the bankruptcy proceeding.
Related-party transactions and guarantees
See Note 18 to the financial statements for a discussion of the Entergy New Orleans bankruptcy proceedings
and activity between Entergy and Entergy New Orleans.
Entergy Gulf States Louisiana purchased approximately $49.3 million, $82.5 million, and $68.4 million of
electricity generated from Entergy's share of RS Cogen in 2009, 2008, and 2007, respectively. Entergy's operating
transactions with its other equity method investees were not significant in 2009, 2008, or 2007.
137