Entergy 2011 Annual Report Download - page 86

The annual long-term debt maturities (excluding lease
obligations and long-term DOE obligations) for debt outstanding
as of December 31, 2011, for the next five years are as follows
(in thousands):
2012 $2,124,679
2013 $ 707,684
2014 $ 135,899
2015 $ 860,566
2016 $ 344,850
In November 2000, Entergy’s non-utility nuclear business
purchased the FitzPatrick and Indian Point 3 power plants in a
seller-financed transaction. Entergy issued notes to NYPA with seven
annual installments of approximately $108 million commencing one
year from the date of the closing, and eight annual installments of $20
million commencing eight years from the date of the closing. These
notes do not have a stated interest rate, but have an implicit interest
rate of 4.8%. In accordance with the purchase agreement with NYPA,
the purchase of Indian Point 2 in 2001 resulted in Entergy becoming
liable to NYPA for an additional $10 million per year for 10 years,
beginning in September 2003. This liability was recorded upon the
purchase of Indian Point 2 in September 2001, and is included in
the note payable to NYPA balance above. In July 2003, a payment
of $102 million was made prior to maturity on the note payable to
NYPA. Under a provision in a letter of credit supporting these notes,
if certain of the Utility operating companies or System Energy were
to default on other indebtedness, Entergy could be required to post
collateral to support the letter of credit.
Entergy Gulf States Louisiana, Entergy Louisiana, Entergy
Mississippi, Entergy Texas, and System Energy have obtained long-
term financing authorizations from the FERC that extend through
July 2013. Entergy Arkansas has obtained long-term financing
authorization from the APSC that extends through December 2012.
Entergy New Orleans has obtained long-term financing authorization
from the City Council that extends through July 2012.
Capital Funds Agreement
Pursuant to an agreement with certain creditors, Entergy Corporation
has agreed to supply System Energy with sufficient capital to:
n maintain System Energy’s equity capital at a minimum of 35% of
its total capitalization (excluding short-term debt);
n permit the continued commercial operation of Grand Gulf;
n pay in full all System Energy indebtedness for borrowed money
when due; and
n enable System Energy to make payments on specific System
Energy debt, under supplements to the agreement assigning
System Energy’s rights in the agreement as security for the
specific debt.
Entergy Corporation Debt Issuance
In January 2012, Entergy Corporation issued $500 million of 4.70%
Series senior notes due January 2017. Entergy Corporation used the
proceeds to repay borrowings under its $3.5 billion credit facility.
Entergy Louisiana Debt Issuances
On December 14, 2011, Entergy Louisiana issued $750 million of
1.1007% Series first mortgage bonds, due December 31, 2012, to
Entergy Corporation. Entergy Louisiana repurchased the bonds at par,
plus accrued interest of $161 thousand, on December 22, 2011.
In January 2012, Entergy Louisiana issued $250 million of 1.875%
Series first mortgage bonds due December 2014. Entergy Louisiana
used the proceeds to repay short-term borrowings under the Entergy
System money pool.
Entergy Arkansas Securitization Bonds
In June 2010 the APSC issued a financing order authorizing the
issuance of bonds to recover Entergy Arkansas’s January 2009 ice
storm damage restoration costs, including carrying costs of $11.5
million and $4.6 million of up-front financing costs. In August 2010,
Entergy Arkansas Restoration Funding, LLC, a company wholly-
owned and consolidated by Entergy Arkansas, issued $124.1 million
of storm cost recovery bonds. The bonds have a coupon of 2.30% and
an expected maturity date of August 2021. Although the principal
amount is not due until the date given above, Entergy Arkansas
Restoration Funding expects to make principal payments on the
bonds over the next five years in the amount of $12.2 million for
2012, $12.6 million for 2013, $12.8 million for 2014, $13.2 million for
2015, and $13.4 million for 2016. With the proceeds, Entergy Arkansas
Restoration Funding purchased from Entergy Arkansas the storm
recovery property, which is the right to recover from customers
through a storm recovery charge amounts sufficient to service the
securitization bonds. The storm recovery property is reflected as
a regulatory asset on the consolidated Entergy Arkansas balance
sheet. The creditors of Entergy Arkansas do not have recourse to
the assets or revenues of Entergy Arkansas Restoration Funding,
including the storm recovery property, and the creditors of Entergy
Arkansas Restoration Funding do not have recourse to the assets or
revenues of Entergy Arkansas. Entergy Arkansas has no payment
obligations to Entergy Arkansas Restoration Funding except to
remit storm recovery charge collections.
Entergy Louisiana Securitization Bonds – Little Gypsy
In August 2011, the LPSC issued a financing order authorizing
the issuance of bonds to recover Entergy Louisiana’s investment
recovery costs associated with the cancelled Little Gypsy repowering
project. In September 2011, Entergy Louisiana Investment Recovery
Funding I, L.L.C., a company wholly-owned and consolidated
by Entergy Louisiana, issued $207.2 million of senior secured
investment recovery bonds. The bonds have an interest rate of
2.04% and an expected maturity date of June 2021. Although the
principal amount is not due until the date given above, Entergy
Louisiana Investment Recovery Funding expects to make principal
payments on the bonds over the next five years in the amounts of
$25.6 million for 2012, $16.6 million for 2013, $21.9 million for 2014,
$20.5 million for 2015, and $21.6 million for 2016. With the proceeds,
Entergy Louisiana Investment Recovery Funding purchased from
Entergy Louisiana the investment recovery property, which is the
right to recover from customers through an investment recovery
charge amounts sufficient to service the bonds. In accordance with
the financing order, Entergy Louisiana will apply the proceeds it
received from the sale of the investment recovery property as a
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
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