Entergy 2009 Annual Report Download - page 77

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
73
SFAS 167 also requires additional disclosures on an interim and annual basis about an enterprise's involvement in
variable interest entities. The standard will be effective for Entergy in the first quarter 2010. Upon adoption,
Entergy expects its subsidiaries that finance their nuclear fuel purchases through nuclear fuel leases to consolidate
the special purpose nuclear fuel companies acting as lessors. The adoption of this statement will result in the
reclassification of amounts between certain line items in the financial statements.
NOTE 2. RATE AND REGULATORY MATTERS
Regulatory Assets
Other Regulatory Assets
Regulatory assets represent probable future revenues associated with costs that are expected to be recovered
from customers through the regulatory ratemaking process affecting the Utility business. In addition to the
regulatory assets that are specifically disclosed on the face of the balance sheets, the table below provides detail of
"Other regulatory assets" that are included on Entergy's and the Registrant Subsidiaries' balance sheets as of
December 31, 2009 and 2008:
Entergy
2009 2008
(In Millions)
Asset Retirement Obligation - recovery dependent upon timing of decommissioning
(Note 9) (b) $403.9 $371.2
Deferred capacity - recovery timing will be determined by the LPSC in
the formula rate plan filings (Note 2 – Retail Rate Proceedings – Filings with the LPSC) 23.2 48.4
Grand Gulf fuel - non-current - recovered through rate riders when rates are redetermined
periodically (Note 2 – Fuel and purchased power cost recovery) 58.2 28.6
Gas hedging costs - recovered through fuel rates 0.4 66.8
Pension & postretirement costs (Note 11 – Qualified Pension Plans, Other Postretirement
Benefits, and Non-Qualified Pension Plans) (b) 1,481.7 1,468.6
Postretirement benefits - recovered through 2012 (Note 11 – Other Postretirement Benefits
)
(b) 7.2 9.6
Provision for storm damages, including hurricane costs - recovered through
securitization, insurance proceeds, and retail rates (Note 2 - Storm Cost Recovery Filings
with Retail Regulators)1,183.2 1,041.4
Removal costs - recovered through depreciation rates (Note 9) (b) 44.4 63.9
River Bend AFUDC - recovered through August 2025 (Note 1 – River Bend AFUDC)28.1 29.9
Sale-leaseback deferral -
Grand Gulf and Waterford 3 Lease Obligations recovered through
June 2014 and December 2044, respectively (Note 10 – Sale and Leaseback Transactions –
Grand Gulf Lease Obligations and Waterford 3 Lease Obligations) 115.3 122.8
Spindletop gas storage facility - recovered through December 2032 (a) 34.2 35.8
Transition to competition - recovered through February 2021 (Note 2 – Retail Rate
Proceedings – Filings with the PUCT and Texas Cities) 101.9 107.6
Unamortized loss on reacquired debt - recovered over term of debt 115.0 124.0
Unrealized loss on decommissioning trust funds -42.3
Other 50.5 54.2
Total $3,647.2 $3,615.1
(a) The jurisdictional split order assigned
the regulatory asset to Entergy Texas. The regulatory asset, however, is
being recovered and amortized at Entergy Gulf States Louisiana. As a result, a billing will occur monthly over
the same term as the recovery and receipts will be submitted to Enter
gy Texas. Entergy Texas has recorded a
receivable from Entergy Gulf States Louisiana and Entergy Gulf States Louisiana has recorded a corresponding
payable.
(b) Does not earn a return on investment, but is offset by related liabilities.
75