Entergy 2014 Annual Report Download - page 98


(QWHUJ\&RUSRUDWLRQDQG6XEVLGLDULHV
1RWHVWR)LQDQFLDO6WDWHPHQWV


,Q0DUFK(QWHUJ\0LVVLVVLSSLVXEPLWWHGLWVIRUPXODUDWHSODQILOLQJIRUWKHWHVW\HDU7KHILOLQJ
UHTXHVWHG D  PLOOLRQ UHYHQXH LQFUHDVH WR UHVHW (QWHUJ\ 0LVVLVVLSSL¶V UHWXUQ RQ FRPPRQ HTXLW\ WR 
ZKLFKLVD SRLQW ZLWKLQ WKHIRUPXOD UDWHSODQ EDQGZLGWK ,Q -XQH (QWHUJ\0LVVLVVLSSL DQGWKH0LVVLVVLSSL
3XEOLF 8WLOLWLHV 6WDII HQWHUHG LQWR D MRLQW VWLSXODWLRQ LQ ZKLFK ERWK SDUWLHV DJUHHG WKDW WKH 036& VKRXOGDSSURYH D
PLOOLRQUDWHLQFUHDVHIRU(QWHUJ\0LVVLVVLSSLZKLFKZLWKRWKHUDGMXVWPHQWVUHIOHFWHGLQWKHVWLSXODWLRQZRXOG
KDYH WKH HIIHFW RI UHVHWWLQJ (QWHUJ\ 0LVVLVVLSSL¶V UHWXUQ RQ FRPPRQ HTXLW\ WR  ZKHQ DGMXVWHG IRU
SHUIRUPDQFHXQGHUWKHIRUPXODUDWHSODQ,Q$XJXVWWKH036&DSSURYHGWKHMRLQWVWLSXODWLRQEHWZHHQ(QWHUJ\
0LVVLVVLSSL DQGWKH0LVVLVVLSSL 3XEOLF 8WLOLWLHV6WDIIDXWKRUL]LQJWKHUDWHLQFUHDVH HIIHFWLYH ZLWK6HSWHPEHU 
ELOOV$GGLWLRQDOO\WKH036&DXWKRUL]HG(QWHUJ\0LVVLVVLSSLWRGHIHUDSSUR[LPDWHO\PLOOLRQLQ0,62UHODWHG
LPSOHPHQWDWLRQFRVWVLQFXUUHGLQDORQJZLWKRWKHU0,62UHODWHGLPSOHPHQWDWLRQFRVWVLQFXUUHGLQ

,Q-XQH(QWHUJ\0LVVLVVLSSLILOHGLWVILUVWJHQHUDOUDWHFDVHEHIRUHWKH036&LQDOPRVW\HDUV7KH
UDWH ILOLQJ ODLG RXW (QWHUJ\ 0LVVLVVLSSL¶V SODQV IRU LPSURYLQJ UHOLDELOLW\ PRGHUQL]LQJ WKH JULG PDLQWDLQLQJ LWV
ZRUNIRUFHVWDELOL]LQJUDWHVXWLOL]LQJQHZWHFKQRORJLHVDQGDWWUDFWLQJQHZLQGXVWU\WRLWVVHUYLFHWHUULWRU\(QWHUJ\
0LVVLVVLSSL UHTXHVWHG D QHW LQFUHDVH LQ UHYHQXH RI  PLOOLRQ IRU ELOOV UHQGHUHG GXULQJ FDOHQGDU \HDU 
LQFOXGLQJ  PLOOLRQ UHVXOWLQJ IURP QHZ GHSUHFLDWLRQ UDWHV WR XSGDWH WKH HVWLPDWHG VHUYLFH OLIH RI DVVHWV ,Q
DGGLWLRQWKHILOLQJSURSRVHGDPRQJRWKHUWKLQJVUHDOLJQLQJFRVWUHFRYHU\RIWKH$WWDODDQG+LQGVSRZHUSODQW
DFTXLVLWLRQV IURP WKH SRZHU PDQDJHPHQW ULGHU WR EDVH UDWHV  LQFOXGLQJ FHUWDLQ 0,62UHODWHG UHYHQXHV DQG
H[SHQVHVLQWKHSRZHUPDQDJHPHQWULGHUSRZHUPDQDJHPHQWULGHUFKDQJHVWKDWUHIOHFWWKHFKDQJHVLQFRVWVDQG
UHYHQXHVWKDWZLOODFFRPSDQ\(QWHUJ\0LVVLVVLSSL¶VZLWKGUDZDOIURPSDUWLFLSDWLRQLQWKH6\VWHP$JUHHPHQWDQG
D IRUPXOD UDWH SODQ IRUZDUG WHVW \HDU WR DOORZ IRU NQRZQ FKDQJHV LQ H[SHQVHV DQG UHYHQXHV IRU WKH UDWH HIIHFWLYH 
SHULRG(QWHUJ\0LVVLVVLSSLSURSRVHGPDLQWDLQLQJWKHFXUUHQWDXWKRUL]HGUHWXUQRQFRPPRQHTXLW\RI

,Q2FWREHU(QWHUJ\0LVVLVVLSSLDQGWKH0LVVLVVLSSL3XEOLF8WLOLWLHV6WDIIHQWHUHGLQWRDQGILOHGMRLQW
VWLSXODWLRQVWKDWDGGUHVVHGWKHPDMRULW\RILVVXHVLQWKHSURFHHGLQJ7KHVWLSXODWLRQVSURYLGHGIRU

 DQ DSSUR[LPDWH  PLOOLRQ QHW LQFUHDVH LQ UHYHQXHV ZKLFK UHIOHFWHG DQ DJUHHG XSRQ  UHWXUQ RQ
FRPPRQHTXLW\
 UHYLVLRQ RI (QWHUJ\ 0LVVLVVLSSL¶V IRUPXOD UDWH SODQ E\ SURYLGLQJ (QWHUJ\ 0LVVLVVLSSL ZLWK WKH DELOLW\ WR
UHIOHFW NQRZQ DQG PHDVXUDEOH FKDQJHV WR KLVWRULFDO UDWH EDVH DQG FHUWDLQ H[SHQVH DPRXQWV UHVROYLQJ
XQFHUWDLQW\ DURXQG DQG REYLDWLQJ WKH QHHG IRU DQ DGGLWLRQDO UDWH ILOLQJ LQ FRQQHFWLRQ ZLWK (QWHUJ\
0LVVLVVLSSL¶V ZLWKGUDZDO IURP SDUWLFLSDWLRQ LQ WKH 6\VWHP $JUHHPHQW XSGDWLQJ GHSUHFLDWLRQ UDWHV DQG
PRYLQJFRVWVDVVRFLDWHGZLWKWKH$WWDODDQG+LQGVJHQHUDWLQJSODQWVIURPWKHSRZHUPDQDJHPHQWULGHUWR
EDVHUDWHV
 UHFRYHU\RIQRQIXHO0,62UHODWHGFRVWVWKURXJKDVHSDUDWHULGHUIRUWKDWSXUSRVH
 D GHIHUUDO RI  PLOOLRQ LQ RWKHU RSHUDWLRQ DQG PDLQWHQDQFH H[SHQVHV DVVRFLDWHG ZLWK WKH %D[WHU :LOVRQ
RXWDJH DQG D GHWHUPLQDWLRQ WKDW WKH UHJXODWRU\ DVVHW VKRXOG DFFUXH FDUU\LQJ FRVWV ZLWK DPRUWL]DWLRQ RI WKH
UHJXODWRU\DVVHWRYHUWZR\HDUVEHJLQQLQJLQ)HEUXDU\DQGDSURYLVLRQWKDWWKHFDSLWDOFRVWVZLOOEH
UHIOHFWHGLQUDWH EDVH6HH 1RWH  WRWKH ILQDQFLDO VWDWHPHQWVIRU IXUWKHU GLVFXVVLRQ RI WKH %D[WHU :LOVRQ 
RXWDJHDQG
 FRQVROLGDWLRQ RI WKH QHZ QXFOHDU JHQHUDWLRQ GHYHORSPHQW FRVWV SURFHHGLQJ ZLWK WKH JHQHUDO UDWH FDVH
SURFHHGLQJ IRU KHDULQJ SXUSRVHV DQG D GHWHUPLQDWLRQ WKDW (QWHUJ\ 0LVVLVVLSSL ZRXOG QRW IXUWKHU SXUVXH
H[FHSW DV QRWHG EHORZ UHFRYHU\ RI WKH FRVWV WKDW ZHUH DSSURYHG IRU GHIHUUDO E\ WKH 036& LQ 1RYHPEHU 
7KHVWLSXODWLRQVVWDWH KRZHYHU WKDW LI(QWHUJ\0LVVLVVLSSLGHFLGHVWR PRYHIRUZDUG ZLWKQXFOHDU
GHYHORSPHQWLQ0LVVLVVLSSLLWFDQDWWKDWWLPHUHSUHVHQWIRUFRQVLGHUDWLRQE\WKH036&RQO\WKRVHFRVWV
GLUHFWO\DVVRFLDWHGZLWKWKHH[LVWLQJHDUO\VLWHSHUPLW(63WRWKHH[WHQWWKDWWKHFRVWVDUHYHULILDEOHDQG 
SUXGHQWDQGWKH(63LVVWLOOYDOLGDQGUHOHYDQWWRDQ\VXFKRSWLRQSXUVXHG6HH "New Nuclear Generation
Development Costs - Entergy Mississippi" EHORZ IRU IXUWKHU GLVFXVVLRQRI WKH QHZ QXFOHDU JHQHUDWLRQ
GHYHORSPHQW FRVWV SURFHHGLQJ DQG VXEVHTXHQW ZULWHRII LQ  RI WKH UHJXODWRU\ DVVHW UHODWHG WR WKRVH
FRVWV
,Q'HFHPEHUWKH036&LVVXHGDQRUGHUDFFHSWLQJWKHVWLSXODWLRQVLQWKHLUHQWLUHW\DQGDSSURYLQJWKHUHYHQXH
DGMXVWPHQWVDQGUDWHFKDQJHVHIIHFWLYHZLWK)HEUXDU\ELOOV
