Entergy 2012 Annual Report Download - page 81

Entergy Corporation and Subsidiaries 2012
or if Entergy Corporation or one of the Utility operating companies
(except Entergy New Orleans) defaults on other indebtedness or is in
bankruptcy or insolvency proceedings, an acceleration of the facility
maturity date may occur.
In September 2012, Entergy Corporation implemented a com-
mercial paper program with a program limit of up to $500 mil-
lion. In November 2012, Entergy Corporation increased the limit
for the commercial paper program to $1 billion. At December 31,
2012, Entergy Corporation had $665 million of commercial paper
outstanding. The weighted-average interest rate for the year ended
December 31, 2012 was 0.88%.
Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisi-
ana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas
each had credit facilities available as of December 31, 2012 as follows
(dollars in millions):
Amount
Expiration Amount of Interest Drawn as of
Company Date Facility Rate(a) Dec. 31, 2012
Entergy Arkansas April 2013 $ 20(b) 1.81% –
Entergy Arkansas March 2017 $150(c) 1.71% –
Entergy Gulf
States Louisiana March 2017 $150(d) 1.71% –
Entergy Louisiana March 2017 $ 200(e) 1.71% –
Entergy
Mississippi May 2013 $ 35(f) 1.96% –
Entergy
Mississippi May 2013 $ 25(f) 1.96% –
Entergy
Mississippi May 2013 $ 10(f) 1.96% –
Entergy
New Orleans November 2013 $ 25(g) 1.69% –
Entergy Texas March 2017 $150(h) 1.96% –
(a) The interest rate is the rate as of December 31, 2012 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 this Entergy Arkansas
credit facility may be secured by a security interest in its accounts receivable.
(c) The credit facility allows Entergy Arkansas to issue letters of credit against
50% of the borrowing capacity of the facility. As of December 31, 2012, no
letters of credit were outstanding. The credit facility requires Entergy Arkansas
to maintain a consolidated debt ratio of 65% or less of its total capitalization.
(d) The credit facility allows Entergy Gulf States Louisiana to issue letters of credit
against 50% of the borrowing capacity of the facility. As of December 31,
2012, 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.
(e) The credit facility allows Entergy Louisiana to issue letters of credit against 50%
of the borrowing capacity of the facility. As of December 31, 2012, no letters of
credit were outstanding. The credit facility requires Entergy Louisiana to main-
tain a consolidated debt ratio of 65% or less of its total capitalization.
(f) 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.
(g) The credit facility requires Entergy New Orleans to maintain a debt ratio of
65% or less of its total capitalization.
(h) The credit facility allows Entergy Texas to issue letters of credit against 50% of
the borrowing capacity of the facility. As of December 31, 2012, 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.
The facility fees on the credit facilities range from 0.125% to
0.275% 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, 2013. In addi-
tion 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 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, 2012 (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 $7
Entergy Louisiana $250 $–
Entergy Mississippi $175 $–
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 con-
solidation of the nuclear fuel company variable interest entities
(VIE). The nuclear fuel company variable interest entities have credit
facilities and also issue commercial paper to finance the acquisition
and ownership of nuclear fuel as follows as of December 31, 2012
(dollars in millions):
Weighted Amount
Average Outstanding
Interest as of
Expiration Amount of Rate on December
Company Date Facility Borrowings(a) 31, 2012
Entergy Arkansas VIE July 2013 $ 85 2.31% $36.7
Entergy Gulf States
Louisiana VIE July 2013 $ 85 n/a $ –
Entergy
Louisiana VIE July 2013 $ 90 2.36% $54.7
System Energy VIE July 2013 $100 2.37% $40.0
(a) Includes letter of credit fees and bank fronting fees on commercial paper
issuances by the nuclear fuel company variable interest entities for Entergy
Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company
variable interest entity for Entergy Gulf States Louisiana does not issue
commercial paper, but borrows directly on its bank credit facility.
Amounts outstanding on the Entergy Gulf States Louisiana nuclear
fuel company variable interest entity’s credit facility are included in
long-term debt on its balance sheet and commercial paper outstand-
ing for the other nuclear fuel company variable interest entities is
classified as a current liability on the respective balance sheets. The
commitment fees on the credit facilities are 0.20% of the undrawn
commitment amount. Each credit facility requires the respective les-
see of nuclear fuel (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 nuclear fuel company variable interest entities had notes pay-
able that are included in debt on the respective balance sheets as of
December 31, 2012 as follows (dollars in millions):
Company Description Amount
Entergy Arkansas VIE 9% Series H due June 2013 $30
Entergy Arkansas VIE 5.69% Series I due July 2014 $70
Entergy Arkansas VIE 3.23% Series J due July 2016 $55
Entergy Arkansas VIE 2.62% Series K due December 2017 $60
Entergy Gulf States Louisiana VIE 5.56% Series N due May 2013 $75
Entergy Gulf States Louisiana VIE 3.25% Series Q due July 2017 $75
Entergy Louisiana VIE 5.69% Series E due July 2014 $50
Entergy Louisiana VIE 3.30% Series F due March 2016 $20
Entergy Louisiana VIE 3.25% Series G due July 2017 $25
System Energy VIE 6.29% Series F due September 2013 $70
System Energy VIE 5.33% Series G due April 2015 $60
System Energy VIE 4.02% Series H due February 2017 $50
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
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