Entergy 2009 Annual Report Download - page 78

Entergy Corporation and Subsidiaries
Notes to Financial Statements
74
Fuel and purchased power cost recovery
Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy Mississippi, Entergy New
Orleans, and Entergy Texas are allowed to recover certain fuel and purchased power costs through fuel mechanisms
included in electric and gas rates that are recorded as fuel cost recovery revenues. The difference between revenues
collected and the current fuel and purchased power costs is recorded as "Deferred fuel costs" on the Utility operating
companies' financial statements. The table below shows the amount of deferred fuel costs as of December 31, 2009
and 2008, that Entergy expects to recover (or return to customers) through fuel mechanisms, subject to subsequent
regulatory review.
2009 2008
(In Millions)
Entergy Arkansas $122.8 $119.1
Entergy Gulf States Louisiana (a) $57.8 $8.1
Entergy Louisiana (a) $66.4 ($23.6)
Entergy Mississippi ($72.9) $5.0
Entergy New Orleans (a) $8.1 $21.8
Entergy Texas ($102.7) $21.2
(a) 2009 and 2008 include
$100.1 million for Entergy Gulf States Louisiana and $68 million for Entergy Louisiana
of fuel, purchased power, and capacity costs that are expected to be recovered over a period greater than twelve
months. 2009 includes $4.1 million for Entergy New Orl
eans of fuel, purchased power, and capacity costs that
are expected to be recovered over a period greater than twelve months.
Entergy Gulf States Louisiana made a $36.8 million adjustment to its deferred fuel costs in the fourth quarter 2009
relating to unrecovered nuclear fuel costs incurred since January 2008 that will now be recovered after a revision to
the fuel adjustment clause methodology.
Entergy Arkansas
Production Cost Allocation Rider
In its June 2007 decision on Entergy Arkansas' August 2006 rate filing, the APSC approved a production
cost allocation rider for recovery from customers of the retail portion of the costs allocated to Entergy Arkansas as a
result of the System Agreement proceedings. These costs cause an increase in Entergy Arkansas' deferred fuel cost
balance, because Entergy Arkansas pays the costs over seven months but collects them from customers over twelve
months. In December 2007, the APSC issued a subsequent order stating that termination of the rider would be
subject to eighteen months advance notice by the APSC, which would occur following notice and hearing.
See Entergy Corporation and Subsidiaries' "MANAGEMENT'S FINANCIAL DISCUSSION AND
ANALYSIS - System Agreement Proceedings" for a discussion of the System Agreement proceedings.
Energy Cost Recovery Rider
Entergy Arkansas' retail rates include an energy cost recovery rider. In December 2007, the APSC issued an
order stating that termination of the energy cost recovery rider would be subject to eighteen months advance notice by
the APSC, which would occur following notice and hearing.
In March 2009, Entergy Arkansas filed with the APSC its annual energy cost rate for the period April 2009
through March 2010. The filed energy cost rate decreased from $0.02456/kWh to $0.01552/kWh. The decrease
was caused by the following: 1) all three of the nuclear power plants from which Entergy Arkansas obtains power,
76