Entergy 2009 Annual Report Download - page 22

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Entergy Corporation and Subsidiaries
Management's Financial Discussion and Analysis
18
table below, 2007 was affected by a 28 day unplanned outage. Included in the Palisades net revenue is $76 million
and $50 million of amortization of the Palisades purchased power agreement in 2008 and 2007, respectively, which is
non-cash revenue and is discussed in Note 15 to the financial statements. Following are key performance measures
for 2008 and 2007:
2008 2007
Net MW in operation at December 31 4,998 4,998
Average realized price per MWh $59.51 $52.69
GWh billed 41,710 37,570
Capacity factor 95% 89%
Refueling Outage Days:
FitzPatrick 26 -
Indian Point 2 26 -
Indian Point 3 - 24
Palisades - 42
Pilgrim - 33
Vermont Yankee 22 24
Other Income Statement Items
Utility
Other operation and maintenance expenses increased from $1,856 million for 2007 to $1,867 million for
2008. The variance includes:
the write-off in the fourth quarter 2008 of $52 million of costs previously accumulated in Entergy Arkansas's
storm reserve and $16 million of removal costs associated with the termination of a lease, both in connection
with the December 2008 Arkansas Court of Appeals decision in Entergy Arkansas's base rate case. The
base rate case is discussed in more detail in Note 2 to the financial statements;
a decrease of $39 million in payroll-related and benefits costs;
a decrease of $21 million related to expenses recorded in 2007 in connection with the nuclear operations fleet
alignment, as discussed above;
a decrease of approximately $23 million as a result of the deferral or capitalization of storm restoration costs
for Hurricane Gustav and Hurricane Ike, which hit the Utility's service territories in September 2008;
an increase of $18 million in storm damage charges as a result of several storms hitting Entergy Arkansas'
service territory in 2008, including Hurricane Gustav and Hurricane Ike in the third quarter 2008. Entergy
Arkansas discontinued regulatory storm reserve accounting beginning July 2007 as a result of the APSC
order issued in Entergy Arkansas' base rate case. As a result, non-capital storm expenses of $41 million
were charged in 2008 to other operation and maintenance expenses. In December 2008, $19 million of these
storm expenses were deferred per an APSC order and will be recovered through revenues in 2009. See Note
2 to the financial statements for discussion of the APSC order; and
an increase of $17 million in fossil plant expenses due to the Ouachita plant acquisition in 2008.
Depreciation and amortization expenses increased primarily due to:
a revision in the third quarter 2007 related to depreciation on storm cost-related assets. Recoveries of the
costs of those assets are now through the Act 55 financing of storm costs, as approved by the LPSC in the
third quarter 2007. See "Liquidity and Capital Resources - Hurricane Katrina and Hurricane Rita" below
and Note 2 to the financial statements for a discussion of the Act 55 storm cost financing;
20