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Entergy Corporation and Subsidiaries
Notes to Financial Statements
87
In December 2009, Entergy Gulf States Louisiana filed an application seeking LPSC approval for a
$9.7 million revenue requirement to provide supplemental funding for the decommissioning trust maintained for the
LPSC-regulated 70% share of River Bend, in response to an NRC notification of a projected shortfall of
decommissioning funding assurance. Currently, Entergy Gulf States Louisiana's annual retail rates contain no
amount for decommissioning funding.
In May 2008, Entergy Gulf States Louisiana made its formula rate plan filing with the LPSC for the 2007
test year. The filing reflected a 9.26% return on common equity, which was below the allowed earnings bandwidth,
and indicated a $5.4 million revenue deficiency, offset by a $4.1 million decrease in required additional capacity
costs. Entergy Gulf States Louisiana implemented a $20.7 million formula rate plan decrease, subject to refund,
effective the first billing cycle in September 2008. The decrease included removal of interim storm cost recovery and
a reduction in the storm damage accrual. Entergy Gulf States Louisiana then implemented a $16.0 million formula
rate plan increase, subject to refund, effective the first billing cycle in October 2008 to collect previously deferred
and ongoing costs associated with LPSC approved additional capacity, including the Ouachita power plant. In
November 2008 Entergy Gulf States Louisiana filed to implement an additional increase of $9.3 million to recover
the costs of a new purchased power agreement.
In May 2007, Entergy Gulf States Louisiana made its formula rate plan filing with the LPSC for the 2006
test year. The filing reflected a 10.0% return on common equity, which was within the allowed earnings bandwidth,
and an anticipated formula rate plan decrease of $23 million annually attributable to adjustments outside of the
formula rate plan sharing mechanism related to capacity costs and the anticipated securitization of storm costs related
to Hurricane Katrina and Hurricane Rita and the securitization of a storm reserve. In September 2007, Entergy Gulf
States Louisiana modified the formula rate plan filing to reflect a 10.07% return on common equity, which was still
within the allowed bandwidth. The modified filing also reflected implementation of a $4.1 million rate increase,
subject to refund, attributable to recovery of additional LPSC-approved incremental deferred and ongoing capacity
costs. The rate decrease anticipated in the original filing did not occur because of the additional capacity costs
approved by the LPSC, and because securitization of storm costs associated with Hurricane Katrina and Hurricane
Rita and the establishment of a storm reserve had not yet occurred. In October 2007, Entergy Gulf States Louisiana
implemented a $16.4 million formula rate plan decrease that was due to the reclassification of certain franchise fees
from base rates to collection via a line item on customer bills pursuant to an LPSC order. In March 2008 the LPSC
approved an uncontested stipulated settlement that left the current base rates in place and extended the formula rate
plan for one year.
In May 2006, Entergy Gulf States Louisiana made its formula rate plan filing with the LPSC for the 2005
test year. Entergy Gulf States Louisiana modified the filing in August 2006 to reflect an 11.1% return on common
equity which is within the allowed bandwidth. The modified filing includes a formula rate plan increase of $17.2
million annually that provides for 1) interim recovery of $10.5 million of storm costs from Hurricane Katrina and
Hurricane Rita and 2) recovery of $6.7 million of LPSC-approved incremental deferred and ongoing capacity costs.
The increase was implemented with the first billing cycle of September 2006. In May 2007 the LPSC approved a
settlement between Entergy Gulf States Louisiana and the LPSC staff, affirming the rates that were implemented in
September 2006.
Retail Rates - Gas (Entergy Gulf States Louisiana)
In January 2010, Entergy Gulf States Louisiana filed with the LPSC its gas rate stabilization plan for the test
year ended September 30, 2009. The filing showed an earned return on common equity of 10.87%, which is within
the earnings bandwidth of 10.5% plus or minus fifty basis points. The sixty day review and comment period for this
filing remains open.
In January 2009, Entergy Gulf States Louisiana filed with the LPSC its gas rate stabilization plan for the test
year ended September 30, 2008. The filing showed a revenue deficiency of $529 thousand based on a return on
common equity mid-point of 10.5%. In April 2009, Entergy Gulf States Louisiana implemented a $255 thousand
89