Entergy 2009 Annual Report Download - page 39

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Entergy Corporation and Subsidiaries
Management's Financial Discussion and Analysis
35
$100 million in 2008.
A subsidiary of Entergy Texas issued $329.5 million of securitization bonds in June 2007. See Note 5 to the
financial statements for additional information regarding the securitization bonds.
Entergy Corporation paid $237 million of notes payable at their maturities in 2008.
Entergy Mississippi redeemed $100 million of First Mortgage Bonds in 2007.
Entergy Corporation repurchased $512 million of its common stock in 2008 and $1,216 million of its
common stock in 2007.
Entergy Corporation increased the dividend on its common stock in the third quarter 2007. The quarterly
dividend was $0.54 per share for the first two quarters of 2007 and $0.75 per share for each quarter since
then.
Rate, Cost-recovery, and Other Regulation
State and Local Rate Regulation and Fuel-Cost Recovery
The rates that the Utility operating companies and System Energy charge for their services significantly
influence Entergy's financial position, results of operations, and liquidity. These companies are regulated and the
rates charged to their customers are determined in regulatory proceedings. Governmental agencies, including the
APSC, the City Council, the LPSC, the MPSC, the PUCT, and the FERC, are primarily responsible for approval of
the rates charged to customers. Following is a summary of the Utility operating companies' authorized returns on
common equity. The Utility operating companies' base rate, fuel and purchased power cost recovery, and storm cost
recovery proceedings are discussed in Note 2 to the financial statements.
Company Authorized Return on Common Equity (ROE)
Entergy Arkansas
........
9.9%
Entergy Gulf States
Louisiana
..................
9.9%-11.4% (electric)
10.0%-11.0% (gas)
Entergy Louisiana
.......
9.45%-11.05%
Entergy Mississippi 11.91%-14.42%
Entergy New Orleans
..
10.7%-11.5% (electric)
10.25%-11.25% (gas)
Entergy Texas
.............
10.0% (stipulated as a reasonable ROE in rate case
settlement)
System Energy
...........
10.94%
Federal Regulation
The FERC regulates wholesale rates (including Entergy Utility intrasystem energy exchanges pursuant to the
System Agreement) and interstate transmission of electricity, as well as rates for System Energy's sales of capacity
and energy from Grand Gulf to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New
Orleans pursuant to the Unit Power Sales Agreement.
37