Entergy 2009 Annual Report Download - page 83

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Entergy Corporation and Subsidiaries
Notes to Financial Statements
79
courts seeking to reverse the PUCT's decision. The federal proceeding has been abated pending further action by the
FERC in the proceeding discussed below. No procedural schedule has been set for the state proceeding.
Entergy Texas also filed with the FERC a proposed amendment to the System Agreement bandwidth formula
to specifically calculate the payments to Entergy Gulf States Louisiana and Entergy Texas of Entergy Gulf States,
Inc.'s rough production cost equalization receipts for 2007. On May 8, 2009, the FERC issued an order rejecting the
proposed amendment, stating, among other things, that the FERC does not have jurisdiction over the allocation of an
individual utility's receipts/payments among or between its retail jurisdictions and that this was a matter for the
courts to review in the pending proceedings noted above. Because of the FERC's order, Entergy Texas recorded the
effects of the PUCT's allocation of the additional $18.6 million to retail customers in the second quarter 2009. On an
after-tax basis, the charge to earnings was approximately $13.0 million (including interest). Entergy requested
rehearing of the FERC's order, and on July 8, 2009, the FERC granted the request for rehearing for the limited
purpose of affording more time for consideration of Entergy's request.
In May 2009, Entergy Texas filed with the PUCT a request to refund $46.1 million, including interest, of
fuel cost recovery over-collections through February 2009. Entergy Texas requested that the proposed refund be
made over a four-month period beginning June 2009. Pursuant to a stipulation among the various parties, in June
2009 the PUCT issued an order approving a refund of $59.2 million, including interest, of fuel cost recovery
overcollections through March 2009. The refund was made over a three-month period beginning July 2009, with the
exception of certain industrial and seasonal/agricultural customers who received a one-month refund.
In October 2009, Entergy Texas filed with the PUCT a request to refund approximately $71 million,
including interest, of fuel cost recovery over-collections through September 2009. Entergy Texas requested that the
proposed refund be made over a six-month period beginning January 2010. Pursuant to a stipulation among the
various parties, the PUCT issued an order approving a refund of $87.8 million, including interest, of fuel cost
recovery overcollections through October 2009. The refund will be made over a three-month period beginning
January 2010, with the exception of certain industrial and seasonal/agricultural customers who received a one-month
refund.
Entergy Texas' December 2009 rate case filing, which is discussed below, also includes a request to reconcile
$1.8 billion of fuel and purchased power costs covering the period April 2007 through June 2009.
Storm Cost Recovery Filings with Retail Regulators
Entergy Arkansas
Entergy Arkansas Storm Reserve Accounting
The APSC's June 2007 order in Entergy Arkansas' base rate proceeding eliminated storm reserve accounting
for Entergy Arkansas. In March 2009 a law was enacted in Arkansas that requires the APSC to permit storm reserve
accounting for utilities that request it. Entergy Arkansas filed its request with the APSC, and has reinstated storm
reserve accounting effective January 1, 2009. A hearing on Entergy Arkansas' request is scheduled for March 2010.
Entergy Arkansas January 2009 Ice Storm
In January 2009 a severe ice storm caused significant damage to Entergy Arkansas' transmission and
distribution lines, equipment, poles, and other facilities. On January 30, 2009, the APSC issued an order inviting and
encouraging electric public utilities to file specific proposals for the recovery of extraordinary storm restoration
expenses associated with the ice storm. On February 16, 2009, Entergy Arkansas filed a request with the APSC for
an accounting order authorizing deferral of the operating and maintenance cost portion of Entergy Arkansas' ice
storm restoration costs pending their recovery. The APSC issued such an order in March 2009 subject to certain
conditions, including that if Entergy Arkansas seeks to recover the deferred costs, those costs will be subject to
81