Entergy 2010 Annual Report Download - page 85

ENTERGY CORPORATION AND SUBSIDIARIES 2010
Notes to Consolidated Financial Statements continued
Entergy Arkansas, Entergy Gulf States Louisiana, Entergy
Louisiana, Entergy Mississippi, and Entergy Texas each had
credit facilities available as of December 31, 2010 as follows
(in millions):
Amount
Expiration Amount of Interest Drawn as of
Company Date Facility Rate(a) Dec. 31, 2010
Entergy Arkansas April 2011 $75.125(b) 2.75% –
Entergy Gulf
States Louisiana August 2012 $100(c) 0.67% –
Entergy Louisiana August 2012 $200(d) 0.67% –
Entergy
Mississippi May 2011 $ 35(e) 2.01% –
Entergy
Mississippi May 2011 $ 25(e) 2.01% –
Entergy
Mississippi May 2011 $ 10(e) 2.01% –
Entergy Texas August 2012 $ 100(f) 0.74% –
(a) The interest rate is the weighted average interest rate as of December 31,
2010 applied, or that would be applied, to outstanding borrowings under
the facility.
(b) The credit facility requires Entergy Arkansas to maintain a debt ratio
of 65% or less of its total capitalization. Borrowings under the Entergy
Arkansas credit facility may be secured by a security interest in its
accounts receivable.
(c) The credit facility allows Entergy Gulf States Louisiana to issue letters of
credit against the borrowing capacity of the facility. As of December 31,
2010, no letters of credit were outstanding. The credit facility requires
Entergy Gulf States Louisiana to maintain a consolidated debt ratio of 65%
or less of its total capitalization.
(d) The credit facility allows Entergy Louisiana to issue letters of credit against
the borrowing capacity of the facility. As of December 31, 2010, no letters
of credit were outstanding. The credit facility requires Entergy Louisiana to
maintain a consolidated debt ratio of 65% or less of its total capitalization.
(e) Borrowings under the Entergy Mississippi credit facilities may be secured
by a security interest in its accounts receivable. Entergy Mississippi is
required to maintain a consolidated debt ratio of 65% or less of its total
capitalization.
(f) The credit facility allows Entergy Texas to issue letters of credit against
the borrowing capacity of the facility. As of December 31, 2010, no letters
of credit were outstanding. The credit facility requires Entergy Texas to
maintain a consolidated debt ratio of 65% or less of its total capitalization.
Pursuant to the terms of the credit agreement securitization bonds are
excluded from debt and capitalization in calculating the debt ratio.
The facility fees on the credit facilities range from 0.09% to
0.15% of the commitment amount.
The short-term borrowings of the Registrant Subsidiaries are
limited to amounts authorized by the FERC. The current FERC-
authorized limits are effective through October 31, 2011 under
a FERC order dated October 14, 2009. In addition to borrowings
from commercial banks, these companies are authorized under
a FERC order to borrow from the Entergy System money pool.
The money pool is an inter-company borrowing arrangement
designed to reduce the Utility subsidiaries’ dependence on
external short-term borrowings. Borrowings from the money
pool and external short-term borrowings combined may not
exceed the FERC-authorized limits. The following are the FERC-
authorized limits for short-term borrowings and the outstanding
short-term borrowings as of December 31, 2010 (aggregating
both money pool and external short-term borrowings) for the
Registrant Subsidiaries (in millions):
Authorized Borrowings
Entergy Arkansas $250 _
Entergy Gulf States Louisiana $200 –
Entergy Louisiana $250 –
Entergy Mississippi $175 $33
Entergy New Orleans $100 –
Entergy Texas $200 –
System Energy $200 –
Variable Interest Entities
See Note 18 to the financial statements for a discussion of the
consolidation of the nuclear fuel company variable interest
entities (VIE) effective in the first quarter 2010. The variable
interest entities have short-term credit facilities and also
issue commercial paper to finance the acquisition and owner-
ship of nuclear fuel as follows as of December 31, 2010 (dollars
in millions):
Weighted Amount
Average Outstanding
Interest as of
Expiration Amount of Rate on December
Company Date Facility Borrowings(a) 31, 2010
Entergy Arkansas
VIE July 2013 $ 85 2.45% $62.8
Entergy Gulf States
Louisiana VIE July 2013 $ 85 2.125% $24.2
Entergy
Louisiana VIE July 2013 $ 90 2.42% $23.1
System Energy VIE July 2013 $100 2.40% $38.3
(a) Includes letter of credit fees and bank fronting fees on commercial paper
issuances by the VIEs for Entergy Arkansas, Entergy Louisiana, and
System Energy. The VIE for Entergy Gulf States Louisiana does not issue
commercial paper, but borrows directly on its bank credit facility.
The amount outstanding on the Entergy Gulf States Louisiana
credit facility is included in long-term debt on its balance sheet
and the commercial paper outstanding for the other VIEs is
classified as a current liability on the respective balance sheets.
The commitment fees on the credit facilities are 0.20% of the
commitment amount. Each credit facility requires the respective
lessee (Entergy Arkansas, Entergy Gulf States Louisiana, Entergy
Louisiana, or Entergy Corporation as Guarantor for System
Energy) to maintain a consolidated debt ratio of 70% or less of its
total capitalization.
The variable interest entities had long-term notes payable that
are included in long-term debt on the respective balance sheets
as of December 31, 2010 as follows (dollars in millions):
Company Description Amount
Entergy Arkansas VIE 5.60% Series G
due September 2011 $35
Entergy Arkansas VIE 9% Series H due June 2013 $30
Entergy Arkansas VIE 5.69% Series I due July 2014 $70
Entergy Gulf States Louisiana VIE 5.56% Series N due May 2013 $75
Entergy Gulf States Louisiana VIE 5.41% Series O due July 2012 $60
Entergy Louisiana VIE 5.69% Series E due July 2014 $50
System Energy VIE 6.29% Series F due
September 2013 $70
System Energy VIE 5.33% Series G due April 2015 $60
In accordance with regulatory treatment, interest on the
nuclear fuel company variable interest entities’ credit facilities,
commercial paper, and long-term notes payable is included as
fuel expense.
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