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Entergy Corporation and Subsidiaries
Notes to Financial Statements
88
rate increase pursuant to an uncontested settlement with the LPSC staff.
In January 2008, Entergy Gulf States Louisiana filed with the LPSC its gas rate stabilization plan for the test
year ending September 30, 2007. The filing showed a revenue deficiency of $3.7 million based on a return on
common equity mid-point of 10.5%. Entergy Gulf States Louisiana implemented a $3.4 million rate increase in April
2008 pursuant to an uncontested agreement with the LPSC staff.
In January 2007, Entergy Gulf States Louisiana filed with the LPSC its gas rate stabilization plan for the test
year ending September 30, 2006. The filing showed a revenue deficiency of $3.5 million based on a return on
common equity mid-point of 10.5%. In March 2007, Entergy Gulf States Louisiana filed a set of rate and rider
schedules that reflected all proposed LPSC staff adjustments and implemented a $2.4 million base rate increase
effective with the first billing cycle of April 2007 pursuant to the rate stabilization plan.
Filings with the MPSC (Entergy Mississippi)
Formula Rate Plan Filings
In September 2009, Entergy Mississippi filed proposed modifications to its formula rate plan rider. The
proposed modifications include: (1) resetting Entergy Mississippi's return on common equity to the middle of the
formula rate plan bandwidth each year and eliminating the 50/50 sharing in the current plan, (2) replacing the current
rate change limit of two percent of revenues subject to a $14.5 million revenue adjustment cap with a proposed limit
of four percent of revenues, (3) implementing a projected test year for the annual filing and subsequent look-back for
the prior year, and (4) modifying the performance measurement process.
In March 2009, Entergy Mississippi made with the MPSC its annual scheduled formula rate plan filing for
the 2008 test year. The filing reported a $27.0 million revenue deficiency and an earned return on common equity of
7.41%. Entergy Mississippi requested a $14.5 million increase in annual electric revenues, which is the maximum
increase allowed under the terms of the formula rate plan. The MPSC issued an order on June 30, 2009, finding that
Entergy Mississippi's earned return was sufficiently below the lower bandwidth limit set by the formula rate plan to
require a $14.5 million increase in annual revenues, effective for bills rendered on or after June 30, 2009.
In March 2008, Entergy Mississippi made its annual scheduled formula rate plan filing for the 2007 test year
with the MPSC. The filing showed that a $10.1 million increase in annual electric revenues is warranted. In
June 2008, Entergy Mississippi reached a settlement with the Mississippi Public Utilities Staff that would result in a
$3.8 million rate increase. In January 2009 the MPSC rejected the settlement and left the current rates in effect.
Entergy Mississippi appealed the MPSC's decision to the Mississippi Supreme Court. After the decision of the
MPSC regarding the formula rate plan filing for the 2008 test year, Entergy Mississippi filed a motion to dismiss its
appeal to the Mississippi Supreme Court.
In March 2007, Entergy Mississippi made its annual scheduled formula rate plan filing for the 2006 test year
with the MPSC. The filing showed that an increase of $12.9 million in annual electric revenues is warranted. In
June 2007 the MPSC approved a joint stipulation between Entergy Mississippi and the Mississippi Public Utilities
staff that provides for a $10.5 million rate increase, which was effective beginning with July 2007 billings.
Filings with the City Council (Entergy New Orleans)
Formula Rate Plans and Storm-related Riders
On July 31, 2008, Entergy New Orleans filed an electric and gas base rate case with the City Council. On
April 2, 2009, the City Council approved a comprehensive settlement. The settlement provided for a net $35.3
million reduction in combined fuel and non-fuel electric revenue requirement, including conversion of the $10.6
million voluntary recovery credit to a permanent reduction and substantial realignment of Grand Gulf cost recovery
90