Entergy 2009 Annual Report Download - page 37

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Entergy Corporation and Subsidiaries
Management's Financial Discussion and Analysis
33
Investing Activities
2009 Compared to 2008
Net cash used in investing activities decreased by $496 million in 2009 compared to 2008. The following
significant investing cash flow activity occurred in 2009 and 2008:
Construction expenditures were $281 million lower in 2009 than in 2008 primarily due to Hurricane Gustav
and Hurricane Ike restoration spending in 2008.
In March 2008, Entergy Gulf States Louisiana purchased the Calcasieu Generating Facility, a 322 MW
simple-cycle, gas-fired power plant located near the city of Sulphur in southwestern Louisiana, for
approximately $56 million.
In September 2008, Entergy Arkansas purchased the Ouachita Plant, a 789 MW gas-fired plant located 20
miles south of the Arkansas state line near Sterlington, Louisiana, for approximately $210 million (In
November 2009, Entergy Arkansas sold one-third of the plant to Entergy Gulf States Louisiana).
Receipt in 2009 of insurance proceeds from Entergy Texas' Hurricane Ike claim and in 2008 of insurance
proceeds from Entergy New Orleans' Hurricane Katrina claim.
The investment of a net total of $45 million in escrow accounts for construction projects in 2008 and the
withdrawal of $36 million of those funds from escrow accounts in 2009.
2008 Compared to 2007
Net cash used in investing activities increased by $472 million in 2008 compared to 2007. The following
activity is notable in comparing 2008 to 2007:
Construction expenditures were $634 million higher in 2008 than in 2007, primarily due to storm restoration
spending caused by Hurricane Gustav and Hurricane Ike and increased spending on various projects by the
Utility that are discussed further in "Capital Expenditure Plans and Other Uses of Capital" above.
In April 2007, Non-Utility Nuclear purchased the 798 MW Palisades nuclear power plant located near South
Haven, Michigan for a net cash payment of $336 million.
In March 2008, Entergy Gulf States Louisiana purchased the Calcasieu Generating Facility, a 322 MW
simple-cycle, gas-fired power plant located near the city of Sulphur in southwestern Louisiana, for
approximately $56 million.
In September 2008, Entergy Arkansas purchased the Ouachita Plant, a 789 MW gas-fired plant located 20
miles south of the Arkansas state line near Sterlington, Louisiana, for approximately $210 million.
Non-Utility Nuclear made a $72 million payment to NYPA in 2008 under the value sharing agreements
associated with the acquisition of the FitzPatrick and Indian Point 3 power plants. See Note 15 to the
financial statements for additional discussion of the value sharing agreements.
The investment of a net total of $45 million in escrow accounts for construction projects in 2008.
Entergy Mississippi realized proceeds in 2007 from $100 million of investments held in trust that were
received from a bond issuance in 2006 and used to redeem bonds in 2007.
35