Entergy 2009 Annual Report Download - page 70

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
66
System Energy's operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana,
Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf. The
capital costs are computed by allowing a return on System Energy's common equity funds allocable to its net
investment in Grand Gulf, plus System Energy's effective interest cost for its debt allocable to its investment in Grand
Gulf.
Property, Plant, and Equipment
Property, plant, and equipment is stated at original cost. Depreciation is computed on the straight-line basis
at rates based on the applicable estimated service lives of the various classes of property. For the Registrant
Subsidiaries, the original cost of plant retired or removed, less salvage, is charged to accumulated depreciation.
Normal maintenance, repairs, and minor replacement costs are charged to operating expenses. Substantially all of
the Registrant Subsidiaries' plant is subject to mortgage liens.
Electric plant includes the portions of Grand Gulf and Waterford 3 that have been sold and leased back. For
financial reporting purposes, these sale and leaseback arrangements are reflected as financing transactions.
Net property, plant, and equipment for Entergy (including property under capital lease and associated
accumulated amortization) by business segment and functional category, as of December 31, 2009 and 2008, is
shown below:
2009 Entergy Utility
Non-Utility
Nuclear
All
Other
(In Millions)
Production
Nuclear $8,105 $5,414 $2,691 $-
Other 1,724 1,724 - -
Transmission 2,922 2,889 33 -
Distribution 5,948 5,948 - -
Other 1,876 1,398 255 223
Construction work in progress 1,547 1,134 412 1
Nuclear fuel (leased and owned) 1,267 747 520 -
Property, plant, and equipment - net $23,389 $19,254 $3,911 $224
2008 Entergy Utility
Non-Utility
Nuclear
All
Other
(In Millions)
Production
Nuclear $7,998 $5,468 $2,530 $-
Other 1,944 1,723 - 221
Transmission 2,757 2,724 33 -
Distribution 5,361 5,361 - -
Other 1,554 1,283 271 -
Construction work in progress 1,713 1,441 252 20
Nuclear fuel (leased and owned) 1,102 596 506 -
Property, plant, and equipment - net $22,429 $18,596 $3,592 $241
Depreciation rates on average depreciable property for Entergy approximated 2.7% in 2009, 2008, and
2007. Included in these rates are the depreciation rates on average depreciable utility property of 2.7% in 2009,
2.7% in 2008, and 2.6% in 2007 and the depreciation rates on average depreciable non-utility property of 3.8% in
2009, 3.7% in 2008, and 3.6% in 2007.
68