Entergy 2012 Annual Report Download - page 66

Entergy Corporation and Subsidiaries 2012
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
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 was
made for most customers over a three-month period beginning Janu-
ary 2010.
In June 2010, Entergy Texas filed with the PUCT a request to
refund approximately $66 million, including interest, of fuel cost
recovery over-collections through May 2010. In September 2010 the
PUCT issued an order providing for a $77 million refund, including
interest, for fuel cost recovery over-collections through June 2010.
The refund was made for most customers over a three-month period
beginning with the September 2010 billing cycle.
In December 2010, Entergy Texas filed with the PUCT a request
to refund fuel cost recovery over-collections through October 2010.
Pursuant to a stipulation among the parties that was approved by
the PUCT in March 2011, Entergy Texas refunded over-collections
through November 2010 of approximately $73 million, including
interest through the refund period. The refund was made for most
customers over a three-month period that began with the February
2011 billing cycle.
In December 2011, Entergy Texas filed with the PUCT a request
to refund approximately $43 million, including interest, of fuel cost
recovery over-collections through October 2011. Entergy Texas and
the parties to the proceeding reached an agreement that Entergy
Texas would refund $67 million, including interest and additional
over-recoveries through December 2011, over a three-month period.
Entergy Texas and the parties requested that interim rates consis-
tent with the settlement be approved effective with the March 2012
billing month, and the PUCT approved the application in March 2012.
Entergy Texas completed this refund to customers in May 2012.
In October 2012, Entergy Texas filed with the PUCT a request to
refund approximately $78 million, including interest, of fuel cost
recovery over-collections through September 2012. Entergy Texas
requested that the refund be implemented over a six-month period
effective with the January 2013 billing month. Entergy Texas and the
parties to the proceeding reached an agreement that Entergy Texas
would refund $84 million, including interest and additional over-
recoveries through October 2012, to most customers over a three-
month period beginning January 2013. The PUCT approved the
stipulation in January 2013.
In July 2012, Entergy Texas filed with the PUCT an application
to credit its customers approximately $37.5 million, including inter-
est, resulting from the FERC’s October 2011 order in the System
Agreement rough production cost equalization proceeding which is
discussed below in “System Agreement Cost Equalization Proceed-
ings”. In September 2012 the parties submitted a stipulation resolv-
ing the proceeding. The stipulation provided that most Entergy Texas
customers would be credited over a four-month period beginning
October 2012. The credits were initiated with the October 2012 bill-
ing month on an interim basis, and the PUCT subsequently approved
the stipulation, also in October 2012.
In November 2012, Entergy Texas filed a pleading seeking a PUCT
finding that special circumstances exist for limited cost recovery of
capacity costs associated with two power purchase agreements until
such time that these costs are included in base rates or a purchased
capacity recovery rider or other recovery mechanism.
Retail Rate Proceedings
FILINGS WITH THE APSC (ENTERGY ARKANSAS)
Retail Rates
2009 Base Rate Filing
In September 2009, Entergy Arkansas filed with the APSC for a
general change in rates, charges, and tariffs. In June 2010 the APSC
approved a settlement and subsequent compliance tariffs that provide
for a $63.7 million rate increase, effective for bills rendered for the
first billing cycle of July 2010. The settlement provides for a 10.2%
return on common equity.
2013 Base Rate Filing
On December 31, 2012, in accordance with the requirements of
Arkansas law, Entergy Arkansas filed with the APSC notice of its
intent to file an application for a general change or modification in its
rates and tariffs no sooner than 60 days and no longer than 90 days
from the date of its notice.
FIL I N GS WI T H THE LPSC
Retail Rates – Electric
(Entergy Gulf States Louisiana)
In October 2009 the LPSC approved a settlement that resolved Entergy
Gulf States Louisiana’s 2007 test year filing and provided for a formula
rate plan for the 2008, 2009, and 2010 test years. 10.65% is the target
midpoint return on equity for the formula rate plan, with an earnings
bandwidth of +/- 75 basis points (9.90% - 11.40%). Entergy Gulf States
Louisiana, effective with the November 2009 billing cycle, reset its rates
to achieve a 10.65% return on equity for the 2008 test year. The rate
reset, a $44.3 million increase that includes a $36.9 million cost of ser-
vice adjustment, plus $7.4 million net for increased capacity costs and a
base rate reclassification, was implemented for the November 2009 bill-
ing cycle, and the rate reset was subject to refund pending review of the
2008 test year filing that was made in October 2009. In January 2010,
Entergy Gulf States Louisiana implemented an additional $23.9 million
rate increase pursuant to a special rate implementation filing made in
December 2009, primarily for incremental capacity costs approved by
the LPSC. In May 2010, Entergy Gulf States Louisiana and the LPSC
staff submitted a joint report on the 2008 test year filing and requested
that the LPSC accept the report, which resulted in a $0.8 million reduc-
tion in rates effective in the June 2010 billing cycle and a $0.5 million
refund. At its May 19, 2010 meeting, the LPSC accepted the joint report.
In May 2010, Entergy Gulf States Louisiana made its formula rate
plan filing with the LPSC for the 2009 test year. The filing reflected a
10.25% return on common equity, which is within the allowed earn-
ings bandwidth, indicating no cost of service rate change is necessary
under the formula rate plan. The filing does reflect, however, a rev-
enue requirement increase to provide supplemental funding for the
decommissioning trust maintained for the LPSC-regulated 70% share
of River Bend, in response to a NRC notification of a projected short-
fall of decommissioning funding assurance. The filing also reflected
a rate increase for incremental capacity costs. In July 2010 the LPSC
approved a $7.8 million increase in the revenue requirement for
decommissioning, effective September 2010. In August 2010, Entergy
Gulf States Louisiana made a revised 2009 test year filing. The revised
filing reflected a 10.12% earned return on common equity, which is
within the allowed earnings bandwidth resulting in no cost of service
adjustment. The revised filing also reflected two increases outside of
the formula rate plan sharing mechanism: (1) the previously-approved
decommissioning revenue requirement, and (2) $25.2 million for
capacity costs. The rates reflected in the revised filing became effective,
beginning with the first billing cycle of September 2010. Entergy Gulf
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