PURCHASED POWER AGREEMENT CAPACITY COST RECOVERY RIDER
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1 Page ENERGY NEW ORLEANS, INC. ELECRIC SERVICE Effective Date: September 1, 2015 CNO FIFEENH WARD, ALGIERS Filed Date: July 1, 2015 Supersedes: CCR effective 11/28/14 Schedule Consists of: Four Pages and Attachments A - B PURCHASED POWER AGREEMEN CAPACIY COS RECOVERY RIDER I. PURPOSE he purpose of the Purchased Power Agreement ( PPA ) Capacity Cost Recovery Rider ( Rider Schedule CCR ) or ( CCR Rider ) is to provide contemporaneous cost recovery of PPA capacity costs until such time that they are recovered in base rates or a Formula Rate Plan Rate Adjustment. Entergy New Orleans, Inc ("ENOI" or "Company") shall bill the rates set forth in the CCR Rider ( CCR Rider Rates ) to the various rate classes as shown in Attachment A to this CCR Rider. he CCR Rider shall apply in accordance with the provisions of Section II.A below to all electric service billed under the rate schedules at all points in the Fifteenth Ward of the City of New Orleans (Algiers), whether metered or unmetered, and subject to the jurisdiction of the Council. Nothing in this CCR Rider should be considered precedent for ratemaking, legal or policy purposes. II. APPLICAION AND PROCEDURE A. APPLICABILIY he CCR Rider Rates as set forth on Attachment A shall be derived by the formula set out in Attachment B to this CCR Rider ( Capacity Rate Formula ). he CCR Rates shall be added to the rates set out in the Net Monthly Bill section in the Company s rate schedules. he CCR Rider Rates shall be determined in accordance with the provision of this CCR Rider. B. CCR RIDER COSS he CCR Rider Rates shall be based on the estimated annual capacity costs associated with PPAs approved by the New Orleans City Council ( NOCC or Council ) after October 1, he estimated annual capacity costs shall be those approved by the Council. C. CONEMPORANEOUS COS RECOVERY No later than sixty days after Council approval of a PPA, the Company shall file revised CCR Rider Rates to become effective the first billing cycle of the calendar month after deliveries under the PPA commence. D. ANNUAL REDEERMINAION On or about August 31 of each year beginning in 2015, the Company shall file redetermined CCR Rider Rates with the Council. Such rates, shall reflect the realignment of the PPA capacity costs for recovery through a Formula Rate Plan ( FRP ) Rate Adjustment or a change in base rates, if possible. he following rules will apply to the redetermination of the CCR Rider Rates and any realignment of PPA capacity costs. (1) In the event that an Evaluation Report pursuant to a Formula Rate Plan ( FRP ) will be filed in the calendar year by the Company, to the extent practical, (Continued on next page)
2 Page the Company shall include an adjustment in the Evaluation Report filed in May pursuant to the FRP Rider Schedule to realign all PPA capacity costs being recovered in the current CCR Rider Rates for recovery in the FRP Rate Adjustment. Such PPA capacity costs shall be annualized and recovered outside of the bandwidth formula. In subsequent Evaluation Reports, such PPA capacity costs will be included inside the bandwidth formula. If it is not practical to include the adjustment in the May filed Evaluation Report, contemporaneously with the filing of redetermined CCR Rider Rates, the Company shall file an addendum to its Evaluation Report including the adjustment described in the previous paragraph. Such addendum shall be deemed to be part of the Evaluation Report filed in the previous May. In this instance, the redetermined CCR Rider Rates shall be zero, except to the extent that a rue-up Adjustment is necessary, and shall become effective when the FRP Rate Adjustment reflecting the realigned PPA capacity costs becomes effective. (2) In the event that a base rate case is pending at the time that deliveries under a PPA are occurring, the Company shall file, contemporaneously with the filing of redetermined CCR Rider Rates, an addendum to its Application to realign all PPA capacity costs being recovered in the current CCR Rider Rates for recovery in base rates. Such PPA capacity costs shall be annualized. Such addendum shall be deemed to be part of the application to change base rates and filed with such application. In this instance, the redetermined CCR Rider Rates shall be zero except to the extent that a rue-up Adjustment is necessary, and shall become effective when the base rates reflecting the realigned PPA capacity costs becomes effective. (3) In the event that an Evaluation Report has not been filed in the calendar year and no base rate case is pending, the PPA capacity costs to be reflected in the CCR Rider Rates shall be based on the PPA capacity costs incurred in the previous twelve months ending June 30 or, in the case of a fixed price PPA, the projected capacity costs and shall be annualized to the extent necessary. he CCR Rider Rates so determined shall be effective the first billing cycle of October of the filing year and shall remain in effect until redetermined. E. RUE-UP ADJUSMEN Beginning in 2015, a rue-up Adjustment shall be reflected in the CCR Rider revenue requirement. he rue-up Adjustment shall be defined as the difference between the CCR capacity cost revenue requirement and the actual revenues resulting from the CCR Rider for the twelve months ended June 30. F. REDEERMINAION REVIEW PERIOD & EFFECIVE DAE he redetermined CCR Rider Rates shall be filed by the Company and shall be accompanied by a set of workpapers sufficient to document fully the calculations of the redetermined Capacity Rates including any potential rue-up Adjustment. he Council Advisors ("Advisors"), intervenors, and the Company (collectively, the Parties ) shall have fifteen (15) days to ensure that the annual filing complies with the requirements of Sections II.B through II.E above. If any of the Parties should detect any error(s) in the application of the principles and procedures contained in Sections II.B through II.E, such error(s) shall be formally communicated in writing to the other Parties within the same 15 days. Each
3 Page such indicated dispute shall include, if available, documentation of the proposed correction. he Company shall then have fifteen (15) days to review any proposed corrections, to work with the other Parties to resolve any disputes, and to file a revised Attachment A reflecting all corrections upon which the Parties agree. he Company shall provide the other Parties with appropriate workpapers supporting any revisions made to the CCR Rider Rates initially filed. Except where there are unresolved disputes, which shall be addressed in accordance with the provisions of Section II.G below, the redetermined CCR Rider Rates shall become effective as set forth in Section II.D. hose CCR Rider Rates shall then remain in effect until changed pursuant to the provisions of this CCR Rider. G. RESOLUION OF DISPUES In the event there are disputes regarding the annual filing, the Parties shall work together in good faith to resolve such disputes. If the Parties are unable to resolve the disputes or reasonably believe they will be unable to resolve the disputes by the end of the 30 day period provided for in Section II.F above, revised CCR Rider Rates reflecting all revisions to the initially filed CCR Rider Rates on which the Parties agree shall become effective as provided for in Section II.F above. Any remaining disputes shall be submitted to the Council for resolution. If the Council s final ruling on any disputes requires changes to the CCR Rider Rates initially implemented pursuant to the above provisions, the Company shall file a revised Attachment A containing such further modified CCR Rider Rates within fifteen (15) days after receiving the Council's resolution resolving the disputes. he Company shall provide a copy of the filing to the other Parties together with appropriate supporting documentation. Such modified CCR Rider Rates shall then be implemented with the next applicable monthly billing cycle after said filing and shall remain in effect until superseded by CCR Rider Rates established in accordance with the provisions of this CCR Rider. Within sixty (60) days after receipt of the Council s final ruling on any disputes, the Company shall determine the amount to be refunded or surcharged to customers, if any, together with interest at the legal rate of interest. Such refund/surcharge amount shall be included in the CCR Rider rue-up and contained in the next annual redetermination. H. CCR RIDER REVENUE REQUIREMEN ALLOCAION he CCR Rider Revenue Requirement, as stated on Attachment B, Page 2, Line 8, and as determined under the provisions of Sections II.B through II.E above, shall be allocated to each of the applicable Algiers rate classes based on the applicable class Production Demand Allocation Factor as a percentage of total retail Production Demand for all retail rate schedules pursuant to Attachment A. III. INERIM ADJUSMEN If the cumulative CCR Rider rue-up Balance exceeds 10% of the annual Net CCR Rider Revenue Requirement included in the most recently filed CCR Rider, then the Advisors or the Company may propose an interim adjustment of the CCR Rider Rates. (Continued on next page)
4 Page IV. ERM he CCR Rider shall remain in effect until otherwise terminated by a Council resolution, subject to three (3) months advance notice of termination by the Council following reasonable notice and opportunity for hearing. If the CCR Rider is terminated by mutual agreement of the Council and the Company, or if this CCR Rider is terminated by a future Council resolution, the then-existing CCR Rider Rates shall continue to be in effect until new base rates reflecting the then-existing CCR Rider Rates are duly approved and implemented. Nothing contained in this CCR Rider shall limit the right of any party to file an appeal as provided by law.
5 Page Attachment A Page 1 of 1 Effective: 9/1/2015 Entergy New Orleans, Inc - Algiers CCR Rider CCR Capacity Rate Formula Rate Adjustments - XXXX I. APPLICABILIY his rider is applicable under the regular terms and conditions of the Company to all Customers in the Fifteenth Ward of the City of New Orleans served under any retail electric rate schedule * and/or rider schedule.* II. NE MONHLY RAE he Net Monthly Bill or Monthly Bill calculated pursuant to each applicable retail rate schedule* and/or rider schedule* on file with the City of New Orleans will be adjusted monthly by the appropriate percentage of applicable class base rate revenue, before application of the monthly fuel adjustment. * Excluded Schedules: AFC, DK, EAC-A, FA, FRAN, MES-2A, MISO, MVDRR, MVLMR, RCL, RPCEA-A, NNCR Ln No. Rate Class (1) CCR Rider Rates (2) 1 Residential % 2 Small General Service % 3 Large General Service % 4 Lighting % 5 otal Algiers Notes: (1) Excludes schedules specifically identified on Attachment A above of this CCR Rider. (2) See Attachment B, page 1, Col. E
6 Page Attachment B Page 1 of 2 Entergy New Orleans, Inc - Algiers CCR Rider CCR Capacity Rate Formula Rate Adjustments - XXXX Col A Col B Col C Col D Col E Ln No. Rate Class (1) CCR Capacity Revenue Requirement Class Allocation (%) (2) CRR ($) (3) Applicable Base Rate Revenue ($) (4) CCR Rider Rates (5) 1 Residential 71.79% $0 $15,723, % 2 Small General Service 11.19% 0 3,433, % 3 Large General Service 16.51% 0 3,974, % 4 Lighting 0.51% 0 681, % 5 otal Algiers % $ - $ 23,813,051 Notes: (1) Excludes schedules specifically identified on Attachment A, Page 1 of this CCR Rider. (2) he CCR Capacity Revenue Requirement (CRR) shall be allocated to the retail rate classes based on the Production Demand Allocation Factor, i.e., the 12 CP allocation factors. For subsequent redeterminations, the Class Allocation shall be made consistent with the methodology approved for allocating the CRR pursuant to Section II.F of this CCR Rider. (3) See Attachment B, Page 2, Line 8 for the CRR. he class amount is the class allocation in column B times the CRR. (4) he billing determinants shall be the Algiers Base Rate Revenue applicable to this CCR Rider as approved by the Council in the 2013 Rate Case Proceeding. For subsequent redeterminations, the billing determinants shall be the applicable class base rate revenue, as defined on Attachment A of this CCR Rider. (5) Class otal CCR Capacity Revenue Requirement (Column C) divided by Class Billing Determinants (Column D).
7 Page Attachment B Page 2 of 2 Entergy New Orleans, Inc-Algiers CCR Capacity Rate Formula Line Amount No. Description ($) I. Retail Purchased Capacity 1 Net Retail Purchased Capacity Costs (A) 0 2 Revenue-Related Expense Factor (B) Purchased Capacity Revenue Requirement (Ln1 * Ln2 ) 0 II. rue-up Adjustment (C) 4 Prior Year Estimated Purchased Capacity Revenue Requirement 0 5 Prior Year Actual Purchased Capacity Revenue Requirement 0 6 Carrying Costs 0 7 Current Year rue-up Adjustment (Ln5 Ln4 + Ln6) 0 8 otal CCR Rider Revenue Requirement (Ln3+Ln7) 0 Notes: (A) (B) (D) Cost of purchased capacity incurred by the Company for new, incremental purchased capacity contracts offset by revenue from sales of retail capacity, if any, that are known and measurable as of the date of the CCR Rider. Revenue-Related Expense Factor = 1 / (1-Louisiana Retail Bad Debt Rate - Revenue- Related ax Rate ) Beginning in 2015, a rue-up Adjustment shall be reflected in the CCR Rider revenue requirement
NINEMILE 6 NONFUEL COST RECOVERY INTERIM RIDER
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