Entergy Services, Inc. 101 Constitution Ave., N.W. Suite 200 East Washington, DC 20001 Tel: 202 530 7323 Fax: 202 530 7350 E-mail: mgriffe@entergy.com Michael C. Griffen Assistant General Counsel Federal Energy Regulatory Affairs March 15, 2018 VIA ELECTRONIC FILING The Honorable Kimberly D. Bose Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, DC 20426 Re: Entergy Services, Inc., Docket No. ER18- -000 Informational Filing of Annual Transmission Formula Rate Update Dear Secretary Bose: Pursuant to the Federal Energy Regulatory Commission s ( FERC or the Commission ) orders in Docket Nos. EL12-35 1 and ER13-2379 2 and the Annual Update, Information Exchange, and Challenge Procedures of the Entergy Operating Companies 3 ( Annual Update Procedures ) set forth in Attachment O of the Midcontinent Independent System Operator, Inc. s ( MISO ) Open Access Transmission, Energy and Operating Reserve Markets Tariff ( Tariff ), Entergy Services, Inc. ( Entergy Services ), on behalf of the Entergy Operating Companies, submits this informational filing and supporting materials ( Informational Filing ) that reflect the Entergy Operating Companies Annual Transmission Revenue Requirements effective June 1, 2017 through May 31, 2018. 1 Midwest Indep. Transmission Sys. Operator, Inc., 139 FERC 61,127 (2012) ( May 2012 Order), order on investigation, 143 FERC 61,149 (2013) ( May 2013 Order ). 2 Midwest Indep. Transmission Sys. Operator, Inc., 146 FERC 61,212 (2014) ( March 2014 Order ), reh g denied, 150 FERC 61,024 (2015). 3 The Entergy Operating Companies are Entergy Arkansas, Inc. ( Entergy Arkansas ), Entergy Louisiana, LLC ( Entergy Louisiana ), Entergy Mississippi, Inc. ( Entergy Mississippi ), Entergy Texas, Inc. ( Entergy Texas ), and Entergy New Orleans, LLC ( Entergy New Orleans ). Entergy Services is a service company affiliate of the Entergy Operating Companies and acts on their behalf with respect to the execution and administration of certain contracts and in proceedings at the Commission.
Hon. Kimberly D. Bose March 15, 2018 Page 2 I. BACKGROUND In its May 2012 Order, the Commission initiated an investigation pursuant to Section 206 of the Federal Power Act ( FPA ), 16 U.S.C. 824e, to determine whether the formula rate protocols in MISO s Tariff are sufficient to ensure just and reasonable rates. 4 After considering briefs filed by several parties, the Commission issued its May 2013 Order, finding that the formula rate protocols contained in MISO s Tariff are insufficient to ensure just and reasonable rates, and directing MISO and the identified MISO transmission owners to file revised formula rate protocols to enhance the scope of participation by interested parties, increase transparency in the information provided to interested parties, adopt procedures by which interested parties can challenge a transmission owner s implementation of its formula rate, and establish a requirement that MISO and transmission owners make an annual informational filing with the Commission. 5 With regard to the annual informational filing, the Commission required the submission of annual informational filings of [each transmission owner s] formula rate updates... following the time period allowed for parties to review the updates and for transmission owners to respond to information and document requests. 6 The Commission stressed that these filings would be just that, informational, 7 and that they are not themselves rates and do not constitute changes in the underlying rate itself. 8 In its March 2014 Order, the Commission require[d] all MISO transmission owners to submit informational filings in separate docket numbers. 9 The Commission also direct[ed] MISO to provide notification of the filing through the email exploder list to be maintained by MISO, and by posting the docket number assigned to each transmission owner s informational filing on the MISO website and [Open Access Same-Time Information System ( OASIS )] within five days of such filing. 10 The Commission further directed that the informational filings contain information necessary to review the reasonableness of projected costs for transmission owners with forward-looking rates. 11 4 5 6 7 8 9 10 11 May 2012 Order at P 1. May 2013 Order at PP 1, 17-18. Id. at P 92. Id. at P 92 n.142. Id. at P 85. March 2014 Order at P 71. Id. Id. at P 62.
Hon. Kimberly D. Bose March 15, 2018 Page 3 II. THE ANNUAL WHOLESALE TRANSMISSION FORMULA RATE UPDATE IS NOT A RATE CHANGE PURSUANT TO FEDERAL POWER ACT SECTION 205 AND DOES NOT ESTABLISH A NOTICE REQUIREMENT This Informational Filing is not a rate filing and does not change the Entergy Operating Companies transmission formula rate templates under MISO Tariff Attachment O, which constitute the Entergy Operating Companies rates for the development of their annual transmission revenue requirements. 12 Rather, this Informational Filing shows the development of the Entergy Operating Companies annual transmission revenue requirements for June 1, 2017 through May 31, 2018 through the application of data for Calendar Year 2016 to the Entergy Operating Companies transmission formula rate templates. 13 This Informational Filing also provides supporting workpapers. Because this Informational Filing is not a rate filing under FPA Section 205, a notice of filing is not required. Consistent with the requirements of their Annual Update Procedures, the Entergy Operating Companies will provide notice to customers and stakeholders through service of notice of this Informational Filing on customers and stakeholders and by posting the docket number for this filing on MISO s website and OASIS. III. INFORMATIONAL FILING Section VII of the Entergy Operating Companies Annual Update Procedures set forth in Attachment O of the MISO Tariff provides that, by March 15 of each year, the Entergy Operating Companies shall submit an annual informational filing to the Commission including information that is reasonably necessary to determine: (1) that input data under the Transmission Formula Rate Templates are properly recorded in any underlying workpapers; (2) that Entergy Services has properly applied the Transmission Formula Rate Templates and their Annual Update Procedures; 12 The Commission has made clear that annual formula rate updates and informational filings and [sic] are not themselves rates and do not constitute changes in the underlying rate itself (that is, the formula, which is the rate) and thus are not section 205 filings that require Commission approval. May 13 Order at P 85 (citation omitted). 13 Entergy Services notes that this Informational Filing includes information for Entergy New Orleans, Inc. ( ENOI ), which formerly was an Entergy Operating Company. On November 30, 2017, ENOI completed an internal restructuring transaction ( ENOI Internal Restructuring ), authorized by the Commission pursuant to FPA Section 203 in Entergy New Orleans, Inc., 159 FERC 62,264 (2017), in which substantially all of ENOI s assets and liabilities were succeeded to by Entergy New Orleans, a newly-formed, majority-owned indirect subsidiary of Entergy Corporation. The effect of the ENOI Internal Restructuring was to cause ENOI s public utility business to be owned by Entergy New Orleans. See Entergy New Orleans, LLC, Docket No. ER18-520, Notice of Succession (Dec. 22, 2017) (Entergy New Orleans succession to the tariffs and rate schedules of ENOI with a requested effective date of November 30, 2017). The data for Calendar Year 2016 for ENOI is presented in the populated Entergy New Orleans Attachment O.
Hon. Kimberly D. Bose March 15, 2018 Page 4 (3) the accuracy of data and the consistency with the Transmission Formula Rate Templates of the annual transmission revenue requirements under review; (4) the extent of accounting changes that affect Transmission Formula Rate Template inputs; and (5) the reasonableness of the actual and projected costs. The Informational Filing must also describe any corrections or adjustments made during the review period identified in the Annual Update Procedures, and must describe all aspects of the Transmission Formula Rate Templates or their inputs that are the subject of an ongoing dispute under the Annual Update Procedures informal or formal challenge procedures. In compliance with the Annual Update Procedures, an extensive informal review of each of the Entergy Operating Companies data and calculations for each of their respective annual transmission revenue requirements was undertaken. MISO participated in this review process, as did several interested customers. The review resulted in certain minor adjustments and corrections to the Entergy Operating Companies Attachment O formula input data. Those adjustments and corrections are described briefly below, and are detailed in the Attachment O calculations included in this filing and in item IV.5 listed below. Specifically, adjustments were made to reclassify certain amounts originally booked in FERC Account 566 - Miscellaneous Transmission Expense to other FERC Operations and Maintenance accounts. The amounts removed from Account 566 are as follows: Entergy Arkansas $ 277,616 Entergy Louisiana $ 613,758 Entergy Mississippi $ 195,255 Entergy New Orleans $ 75,144 Entergy Texas $ 214,927 Adjustments were also made to remove certain amounts booked in FERC Account 930.200. The amounts removed from Account 930.200 are as follows: Entergy Arkansas $ 39,382 Entergy Louisiana $ 61,679 Entergy Mississippi $ 22,044 Entergy New Orleans $ 11,644 Entergy Texas $ 21,535 Additionally, the following corrections were made: Entergy Arkansas Accounts 920 and 923 were revised by $689 and $2,848, respectively, to reverse the retail Fukushima deferral and amortization.
Hon. Kimberly D. Bose March 15, 2018 Page 5 Entergy Louisiana s Attachment O revenue requirement for the 2015 test year s amortization of the investment tax credit of $4,991,021 was corrected from a positive value to be a negative value. This correction resulted in a $2,532,522 revenue requirement decrease for the 2015 test year. After interest applied at the FERC rate, the true-up amount billed in the 2016 test year was adjusted lower by $1,529,189, with the remainder of the $2,621,466 total correction billed in 2017. In addition to the minor adjustments and corrections to the Entergy Operating Companies Attachment O formula input data resulting from the informal review process, certain other changes were made as a result of recent Commission proceedings in Docket Nos. ER15-1436 and ER17-2579. Specifically, as a result of the partial settlement agreement approved by the Commission in Docket Nos. ER15-1436 and ER17-2579, 14 the following adjustments were implemented for each of the Operating Companies: Appendix A: Lines 152a - 155 were either added or revised. WP21 Pension: Column titles were revised to match Entergy accounting designations. WP22 IT Adj: The tariff workpaper was revised. WP22 Support: A non-tariff supporting workpaper with additional detail was added. Additionally, the following changes, which were contained in a March 14, 2018, errata filing submitted to the Commission under Docket No. ER17-827-001 to correct the versions of the Entergy Operating Companies transmission formula rate templates originally filed in Docket No. ER17-827-000, 15 have been implemented as well: ADIT Account Functionalization Changes From To Companies 190215: Supplemental Pension Plan-Fed Other Labor All except Entergy Texas 190216: Supplemental Pension Plan-St Other Labor All except Entergy Texas 283151: Regulatory Asset - Federal Transmission Other Entergy New Orleans 283152: Regulatory Asset - State Transmission Other Entergy New Orleans 283215: Pension - Federal Other Labor Entergy Louisiana 283216: Pension - State Other Labor Entergy Louisiana Also: WP21 column headings were updated to reflect Entergy accounting designations. 14 See Entergy Ark., Inc., Docket Nos. ER15-1436, et al., Letter Order (Jan. 18, 2018) (approving offer of partial settlement) ( January 18 Order ). 15 See Entergy Ark., Inc., Docket No. ER17-827-001, Errata Filing (Mar. 14, 2018) (submitting corrected versions of the Entergy Operating Companies transmission formula rate templates originally filed in Docket No. ER17-827-000). The Entergy Operating Companies submitted the corrected versions of their Attachment O templates as an errata filing to address limited issues in the template with respect to pension costs that have come to the Entergy Operating Companies attention during the course of ongoing hearing proceedings in Docket No. ER15-1436-001. See id.
Hon. Kimberly D. Bose March 15, 2018 Page 6 The cumulative effect of all of these updates results in a decrease in the annual revenue requirement of each of the Entergy Operating Companies, except for Entergy New Orleans, whose updates resulted in an increase. IV. DOCUMENTS SUBMITTED Entergy Services submits the following documents for each of Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas: 1. Populated formula rate template showing each company s annual transmission revenue requirement effective June 1, 2017; 2. Explanation of adjustments to FERC Form 1 Data made in connection with the transmission formula rate annual update, information exchange, and challenge process; 3. Explanation of data utilized in the transmission formula rate annual update, information exchange, and challenge process that provides greater granularity than required in FERC Form 1 data; 4. Explanation of accounting changes made in connection with the transmission formula rate annual update, information exchange, and challenge process; and 5. Spreadsheet that illustrates the corrections and adjustments identified in Section III, above. V. NOTICE In accordance with Section VII.A of the Entergy Operating Companies Annual Update Procedures, Entergy Services will notify MISO of this filing and provide the docket number for posting on the MISO website and OASIS and notification via MISO s email exploder list within five days. VI. CONCLUSION Please contact the undersigned if you have any questions regarding this submission.
Hon. Kimberly D. Bose March 15, 2018 Page 7 Respectfully submitted, Andrea J. Weinstein Vice Pres., Federal Regulatory Affairs Entergy Services, Inc. 101 Constitution Ave., N.W. Suite 200 East Washington, DC 20001 (202) 530-7342 aweinst@entergy.com /s/ Michael C. Griffen Michael C. Griffen Assistant General Counsel Entergy Services, Inc. 101 Constitution Avenue, N.W. Suite 200 East Washington, DC 20001 (202) 530-7323 mgriffe@entergy.com Attorney for Entergy Services, Inc., on behalf of Entergy Arkansas, Inc., Entergy Louisiana, LLC, Entergy Mississippi, Inc., Entergy New Orleans, LLC, and Entergy Texas, Inc.
Attachment O-EAI Page 1 of 4 MISO Cover Formula Rate - Non-Levelized Rate Formula Template Utilizing FERC Form 1 Data Entergy Arkansas, Inc. True-up Rate (1) (2) (3) (4) (5) Line Allocated No. Amount 1 GROSS REVENUE REQUIREMENT Page 3, Line 31 195,594,846 REVENUE CREDITS Total Allocator 2 Account 454 (Rent From Electric Property: General Plant Only) Page 4, Line 34 52,019 DA 1.0000 52,019 3 Account 456.1 Transmission Service Revenue Credits Page 4, Line 37 693,281 DA 1.0000 693,281 4 Reserved for Future Use (1) NA Zero 5 Reserved for Future Use (1) NA Zero 6 TOTAL REVENUE CREDITS (Sum of Line 2 to Line 5) 745,299 6a True-up Adjustment with Interest Appendix A Line194 True-up Column - DA 1.00000-7a NET REVENUE REQUIREMENT (Line 1 - Line 6 + Line 6a) 194,849,547 7b Network Customer OATT Section 30.9 Facilities Credits Appendix A Line 197 True-up Column - 7c Network Customer OATT Section 30.9 Facilities Credits Appendix A Line 198 True-up Column - 7 NET REVENUE REQUIREMENT (Sum of Line 7a to Line 7c) 194,849,547 DIVISOR 8 Transmission Load Appendix A Line 200 True-up Column - 9 Reserved for Future Use (1) - 10 Reserved for Future Use (1) - 11 Reserved for Future Use (1) - 12 Reserved for Future Use (1) - 13 Reserved for Future Use (1) - 14 Reserved for Future Use (1) - 15 DIVISOR (Sum of Line 8 to Line 14) - 16 Annual Cost ($/kw/yr) (Line 7 / Line 15) - 17 Network & P-to-P Rate ($/kw/mo) (Line 16 / 12) - Peak Rate Off-Peak Rate 18 Point-To-Point Rate ($/kw/wk) (Line 16 / 52; Line 16 / 52) - - 19 Point-To-Point Rate ($/kw/day) (Line 16 / 260; Line 16 / 365) - Capped at weekly rate - 20 Point-To-Point Rate ($/MWh) (Line 16 / 4160; Line 16 / 8760) x 1000 - Capped at weekly - and daily rates 21 FERC Annual Charge($/MWh) - Short Term - Short Term 22 FERC Annual Charge($/MWh) - Long Term - Long Term
Attachment O-EAI Page 2 of 4 MISO Cover Formula Rate - Non-Levelized Rate Formula Template Utilizing FERC Form 1 Data Entergy Arkansas, Inc. True-up Rate (1) (2) (3) (4) (5) Transmission Net Line Source Company Total Allocator (Col 3 times Col 4) No. RATE BASE: GROSS PLANT IN SERVICE 1 Production WP04 PIS Line 18 Column C 4,385,452,586 NA 2 Transmission WP04 PIS Line 18 Column F 1,879,107,154 TP 0.9410 1,768,254,217 2a Transmission - Capital Additions Appendix A Line 20 True-up Column - TP 0.9410-3 Distribution WP04 PIS Line 18 Column I 3,178,733,726 NA 4 General & Intangible WP04 PIS Line 18 Column B & J 605,136,134 W/S 0.0623 37,699,409 5 Reserved for Future Use (1) 6 TOTAL GROSS PLANT (Sum of Line 1 to Line 5) 10,048,429,600 1,805,953,626 ACCUMULATED DEPRECIATION 7 Production WP04 PIS Line 37 Column C 2,433,505,258 NA 8 Transmission WP04 PIS Line 37 Column F 475,677,923 TP 0.9410 447,616,567 8a Transmission - Capital Additions 9 Distribution WP04 PIS Line 37 Column I 1,135,999,853 NA 10 General & Intangible WP04 PIS Line 37 Column B & J 403,118,832 W/S 0.0623 25,113,922 11 Reserved for Future Use (1) 12 TOTAL ACCUM. DEPRECIATION (Sum of Line 7 to Line 11) 4,448,301,866 472,730,489 NET PLANT IN SERVICE 13 Production (Line 1 - Line 7) 1,951,947,328 14 Transmission (Line 2 - Line 8) 1,403,429,231 1,320,637,650 14a Transmission - Capital Additions (Line 2a - Line 8a) - - 15 Distribution (Line 3 - Line 9) 2,042,733,873 16 General & Intangible (Line 4 - Line 10) 202,017,303 12,585,487 17 Reserved for Future Use (1) 18 TOTAL NET PLANT (Sum of Line 13 to Line 17) 5,600,127,734 1,333,223,137 18a Reserved for Future Use (1) ADJUSTMENTS TO RATE BASE 19 ADIT Appendix A Line 43 True-up Column (299,227,688) TP 0.9410 (281,575,545) 20 Reserved for Future Use (1) 21 Reserved for Future Use (1) 22 Unfunded Reserves Rate Base Credits/Debits Appendix A Line 52 True-up Column 17,002,193 TP 0.9410 15,999,194 23 Reserved for Future Use (1) 23a Reserved for Future Use (1) 24 TOTAL ADJUSTMENTS (Sum of Line 19 to Line 23a) (282,225,495) (265,576,351) 25 LAND HELD FOR FUTURE USE Appendix A Line 66 True-up Column 532,591 TP 0.9410 501,172 WORKING CAPITAL 26 Reserved for Future Use (1) 27 Materials & Supplies Appendix A Line 57 True-up Column 21,740,857 TP 0.9410 20,458,313 28 Prepayments (Account 165) Appendix A Line 65 True-up Column 1,202,481 TP 0.9410 1,131,544 29 TOTAL WORKING CAPITAL (Sum of Lines 26 to 28) 22,943,338 21,589,857 30 RATE BASE (Line 18 + Line 18a + Line 24 + Line 25 + Line 29) 5,341,378,168 1,089,737,814
Attachment O-EAI Page 3 of 4 MISO Cover Formula Rate - Non-Levelized Rate Formula Template Utilizing FERC Form 1 Data Entergy Arkansas, Inc. True-up Rate (1) (2) (3) (4) (5) Line No. Source Company Total Allocator (Col 3 times Col 4) O&M 1 Transmission Appendix A Line 75 True-up Column 40,347,981 TP 0.9410 37,967,759 1a Less Adjustments Appendix A Lines 76 - Line 78 - Line 79 True-up Column 14,890,010 TP 0.9410 14,011,614 2 Less Account 565 Appendix A Line 77 True-up Column 6,553,906 TP 0.9410 6,167,276 3 A&G Appendix A Line 81 True-up Column 185,466,963 W/S 0.0623 11,554,417 4 Property Insurance Appendix A Line 100 True-up Column 1,772,049 TP 0.9410 1,667,511 5 Less Adjustments Appendix A Sum of Lines 83 to Line 87 - Line 88 True-up Column 37,867,947 W/S 0.0623 2,359,137 5a Plus Transmission Related Reg. Comm. Exp. & Directly Assigned Acct 930.1 Appendix A Lines 92 to 93 True-up Column 10,238 TP 0.9410 9,634 5b Less PBOP Adjustment Appendix A Line 82 True-up Column - W/S 0.0623-6 Reserved for Future Use (1) 6a (Gain) or Loss on Sales of Transmission Assets Appendix A Line 125 True-up Column - TP 0.9410-6b (Gain) or Loss on Sales of General Plant Assets Appendix A Line 128 True-up Column - TP 0.9410-7 Reserved for Future Use (1) 8 TOTAL O&M (Sum of Line 1 + Line 3 + Line 4 + Line 5a + Line 6a to Line 7-168,285,367 28,661,294 Line 1a - Line 2 - Line 5 - Line 5b) DEPRECIATION EXPENSE 9 Transmission Appendix A Line 103 True-up Column 38,380,240 TP 0.9410 36,116,100 10 General & Intangible Appendix A Line 110 True-up Column 1,828,739 TP 0.9410 1,720,857 11 Reserved for Future Use (1) 12 TOTAL DEPRECIATION (Sum of Lines 9 to Line 11) 40,208,979 37,836,957 TAXES OTHER THAN INCOME TAXES 13 Taxes Other Than Income Taxes Appendix A Line 124 True-up Column 7,744,388 TP 0.9410 7,287,528 14 Reserved for Future Use (1) 15 PLANT RELATED 16 Reserved for Future Use (1) 17 Reserved for Future Use (1) 18 Reserved for Future Use (1) 19 Reserved for Future Use (1) 20 TOTAL OTHER TAXES (Sum of Line 13 to Line 19) 7,744,388 7,287,528 INCOME TAXES 21 Income Taxes Appendix A Line 157 True-up Column 40,638,449 TP 0.9410 38,241,092 22 Reserved for Future Use (1) 23 Reserved for Future Use (1) 24 Reserved for Future Use (1) 25 Reserved for Future Use (1) 26 Reserved for Future Use (1) 27 Total Income Taxes (Sum of Line 21 to Line 26) 40,638,449 38,241,092 RETURN 28 Rate Base times Return Appendix A Line 146 True-up Column 88,806,903 TP 0.9410 83,567,976 29 REV. REQUIREMENT (Line 8 + Line 12 + Line 20 + Line 27 + Line 28) 345,684,086 195,594,846 30 LESS ATTACHMENT GG ADJUSTMENT [Attachment GG, Page 2, Line 3, Column 10] [Revenue Requirement for facilities included on Page 2, Line 2 and also included in Attachment GG] Appendix A Line 167 True-up Column - DA 1.0000-30a LESS ATTACHMENT MM ADJUSTMENT [Attachment MM, Page 2, Line 3, Column 14] [Revenue Requirement for facilities included on Page 2, Line 2 and also included in Attachment MM] Appendix A Line 168 True-up Column - DA 1.0000-31 REV. REQUIREMENT TO BE COLLECTED UNDER ATTACHMENT O (Line 29 - Line 30 - Line 30a) 345,684,086 195,594,846
Attachment O-EAI Page 4 of 4 MISO Cover Formula Rate - Non-Levelized Rate Formula Template Utilizing FERC Form 1 Data Entergy Arkansas, Inc. True-up Rate (1) (2) (3) (4) (5) SUPPORTING CALCULATIONS AND NOTES Line No. TRANSMISSION PLANT INCLUDED IN ISO RATES 1 Total Transmission plant Appendix A Line 170 True-up Column 1,879,107,154 2 Less Transmission plant excluded from ISO rates Appendix A Line 171 True-up Column 110,852,937 3 Reserved for Future Use (1) 4 Transmission plant included in ISO rates (Line 1 - Line 2 - Line 3) 1,768,254,217 5 Percentage of Transmission plant included in ISO Rates (Line 4 / Line 1) TP = 0.9410 6-11 WAGES & SALARY ALLOCATOR (W&S) Form 1 Reference $ TP Allocation 12 Transmission Wages & Salary Expense Appendix A Line 1 True-up Column 11,674,378 0.9410 10,985,679 13 Transmission Wages & Salary Expense Adjustments Appendix A Line 2 True-up Column (136,667) 0.9410 (128,605) 14 Reserved for Future Use (1) W&S Allocator 15 Reserved for Future Use (1) ($ / Allocation) 16 Total Wages Expense Less A&G Appendix A Line 10 True-up Column 174,273,501 10,857,074 0.06230 = WS Reserved for Future Use (1) $ 17 Reserved for Future Use (1) - 18 Reserved for Future Use (1) - 19 Reserved for Future Use (1) - 20 Total (Sum of Line 17 to Line 19) - 21-26 RETURN (R) Cost $ % Weighted 27 Long Term Debt Appendix A Line 130 True-up Column 2,604,902,229 54.00% 4.21% 2.273% = WCLTD 28 Preferred Stock Appendix A Line 133 True-up Column 89,115,891 1.85% 5.91% 0.109% 29 Common Stock Appendix A Line 135 True-up Column 2,129,523,156 44.15% 11.98% 5.287% 30 Total (Sum of Lines 27 to 29) 4,823,541,276 7.669% = R REVENUE CREDITS ACCOUNT 447 (SALES FOR RESALE) 31 Reserved for Future Use (1) 32 Reserved for Future Use (1) 33 Total (Sum of Line 31 + Line 32) - 34 Account 454 (Rent From Electric Property: General Plant Only) Appendix A Line 180 True-up Column 52,019 Account 456.1 Other Electric Revenues 35 Account 456.1 Transmission Service Revenue Credits Appendix A Line 187 True-up Column 94,324,218 36 Account 456.1 Transmission Network & LTF Service Revenues Appendix A Line 188 True-up Column 93,630,937 36a Transmission Revenues Associated with Attachment GG Appendix A Line 189 True-up Column - 36b Transmission Revenues Associated with Attachment MM Appendix A Line 190 True-up Column - 37 Total (Line 35 - Line 36 - Line 36a - Line 36b) 693,281 INCOME TAX RATES 38 FIT = Appendix A Line 147 True-up Column 35.00% 39 SIT= Appendix A Line 148 True-up Column 6.50% (State Income Tax Rate or Composite SIT) 40 p = Appendix A Line 149 True-up Column 0.00% (% of FIT deductible for state purposes) Notes: (1) The above lines on this MISO Cover Rate Formula Template labeled "Reserved for Future Use" will not be used absent a Section 205 or 206 filing.
Attachment O-EAI Page 1 of 4 MISO Cover Formula Rate - Non-Levelized Rate Formula Template Utilizing FERC Form 1 Data Entergy Arkansas, Inc. Projected Rate (1) (2) (3) (4) (5) Line Allocated No. Amount 1 GROSS REVENUE REQUIREMENT Page 3, Line 31 208,441,491 REVENUE CREDITS Total Allocator 2 Account 454 (Rent From Electric Property: General Plant Only) Page 4, Line 34 52,019 DA 1.0000 52,019 3 Account 456.1 Transmission Service Revenue Credits Page 4, Line 37 693,281 DA 1.0000 693,281 4 Reserved for Future Use (1) NA Zero 5 Reserved for Future Use (1) NA Zero 6 TOTAL REVENUE CREDITS (Sum of Line 2 to Line 5) 745,299 6a True-up Adjustment with Interest Appendix A Line194 Projected Column 8,477,261 DA 1.00000 8,477,261 7a NET REVENUE REQUIREMENT (Line 1 - Line 6 + Line 6a) 216,173,453 7b Network Customer OATT Section 30.9 Facilities Credits Appendix A Line 197 Projected Column - 7c Network Customer OATT Section 30.9 Facilities Credits Appendix A Line 198 Projected Column - 7 NET REVENUE REQUIREMENT (Sum of Line 7a to Line 7c) 216,173,453 DIVISOR 8 Transmission Load Appendix A Line 200 Projected Column 5,460,500 9 Reserved for Future Use (1) - 10 Reserved for Future Use (1) - 11 Reserved for Future Use (1) - 12 Reserved for Future Use (1) - 13 Reserved for Future Use (1) - 14 Reserved for Future Use (1) - 15 DIVISOR (Sum of Line 8 to Line 14) 5,460,500 16 Annual Cost ($/kw/yr) (Line 7 / Line 15) 39.59 17 Network & P-to-P Rate ($/kw/mo) (Line 16 / 12) 3.30 Peak Rate Off-Peak Rate 18 Point-To-Point Rate ($/kw/wk) (Line 16 / 52; Line 16 / 52) 0.76 0.76 19 Point-To-Point Rate ($/kw/day) (Line 16 / 260; Line 16 / 365) 0.15 Capped at weekly rate 0.11 20 Point-To-Point Rate ($/MWh) (Line 16 / 4160; Line 16 / 8760) x 1000 9.52 Capped at weekly 4.52 and daily rates 21 FERC Annual Charge($/MWh) - Short Term - Short Term 22 FERC Annual Charge($/MWh) - Long Term - Long Term
Attachment O-EAI Page 2 of 4 MISO Cover Formula Rate - Non-Levelized Rate Formula Template Utilizing FERC Form 1 Data Entergy Arkansas, Inc. Projected Rate (1) (2) (3) (4) (5) Transmission Net Line Source Company Total Allocator (Col 3 times Col 4) No. RATE BASE: GROSS PLANT IN SERVICE 1 Production WP04 PIS Line 16 Column C 4,517,288,280 NA 2 Transmission WP04 PIS Line 16 Column F 2,003,998,511 TP 0.9450 1,893,762,006 2a Transmission - Capital Additions Appendix A Line 20 Projected Column 81,005,437 TP 0.9450 76,549,467 3 Distribution WP04 PIS Line 16 Column I 3,292,329,836 NA 4 General & Intangible WP04 PIS Line 16 Column B & J 630,298,762 W/S 0.0626 39,433,267 5 Reserved for Future Use (1) 6 TOTAL GROSS PLANT (Sum of Line 1 to Line 5) 10,524,920,825 2,009,744,741 ACCUMULATED DEPRECIATION 7 Production WP04 PIS Line 35 Column C 2,491,694,405 NA 8 Transmission WP04 PIS Line 35 Column F 483,750,388 TP 0.9450 457,140,113 8a Transmission - Capital Additions 9 Distribution WP04 PIS Line 35 Column I 1,156,560,772 NA 10 General & Intangible WP04 PIS Line 35 Column B & J 413,093,515 W/S 0.0626 25,844,295 11 Reserved for Future Use (1) 12 TOTAL ACCUM. DEPRECIATION (Sum of Line 7 to Line 11) 4,545,099,080 482,984,408 NET PLANT IN SERVICE 13 Production (Line 1 - Line 7) 2,025,593,875 14 Transmission (Line 2 - Line 8) 1,520,248,123 1,436,621,893 14a Transmission - Capital Additions (Line 2a - Line 8a) 81,005,437 76,549,467 15 Distribution (Line 3 - Line 9) 2,135,769,064 16 General & Intangible (Line 4 - Line 10) 217,205,247 13,588,972 17 Reserved for Future Use (1) 18 TOTAL NET PLANT (Sum of Line 13 to Line 17) 5,979,821,745 1,526,760,333 18a Reserved for Future Use (1) ADJUSTMENTS TO RATE BASE 19 ADIT Appendix A Line 43 Projected Column (322,532,557) TP 0.9450 (304,790,596) 20 Reserved for Future Use (1) 21 Reserved for Future Use (1) 22 Unfunded Reserves Rate Base Credits/Debits Appendix A Line 52 Projected Column 17,002,193 TP 0.9450 16,066,932 23 Reserved for Future Use (1) 23a Reserved for Future Use (1) 24 TOTAL ADJUSTMENTS (Sum of Line 19 to Line 23a) (305,530,364) (288,723,665) 25 LAND HELD FOR FUTURE USE Appendix A Line 66 Projected Column 532,591 TP 0.9450 503,294 WORKING CAPITAL 26 Reserved for Future Use (1) 27 Materials & Supplies Appendix A Line 57 Projected Column 21,740,857 TP 0.9450 20,544,930 28 Prepayments (Account 165) Appendix A Line 65 Projected Column 1,298,343 TP 0.9450 1,226,923 29 TOTAL WORKING CAPITAL (Sum of Lines 26 to 28) 23,039,200 21,771,853 30 RATE BASE (Line 18 + Line 18a + Line 24 + Line 25 + Line 29) 5,697,863,172 1,260,311,815
Attachment O-EAI Page 3 of 4 MISO Cover Formula Rate - Non-Levelized Rate Formula Template Utilizing FERC Form 1 Data Entergy Arkansas, Inc. Projected Rate (1) (2) (3) (4) (5) Line No. Source Company Total Allocator (Col 3 times Col 4) O&M 1 Transmission Appendix A Line 75 Projected Column 40,347,981 TP 0.9450 38,128,508 1a Less Adjustments Appendix A Lines 76 - Line 78 - Line 79 Projected Column 14,890,010 TP 0.9450 14,070,937 2 Less Account 565 Appendix A Line 77 Projected Column 6,553,906 TP 0.9450 6,193,387 3 A&G Appendix A Line 81 Projected Column 185,466,963 W/S 0.0626 11,603,336 4 Property Insurance Appendix A Line 100 Projected Column 1,918,412 TP 0.9450 1,812,884 5 Less Adjustments Appendix A Sum of Lines 83 to Line 87 - Line 88 Projected Column 37,867,947 W/S 0.0626 2,369,126 5a Plus Transmission Related Reg. Comm. Exp. & Directly Assigned Acct 930.1 Appendix A Lines 92 to 93 Projected Column 10,238 TP 0.9450 9,675 5b Less PBOP Adjustment Appendix A Line 82 Projected Column - W/S 0.0626-6 Reserved for Future Use (1) 6a (Gain) or Loss on Sales of Transmission Assets Appendix A Line 125 Projected Column - TP 0.9450-6b (Gain) or Loss on Sales of General Plant Assets Appendix A Line 128 Projected Column - TP 0.9450-7 Reserved for Future Use (1) 8 TOTAL O&M (Sum of Line 1 + Line 3 + Line 4 + Line 5a + Line 6a to Line 7-168,431,730 28,920,953 Line 1a - Line 2 - Line 5 - Line 5b) DEPRECIATION EXPENSE 9 Transmission Appendix A Line 103 Projected Column 38,380,240 TP 0.9450 36,269,009 10 General & Intangible Appendix A Line 110 Projected Column 1,828,739 TP 0.9450 1,728,143 11 Reserved for Future Use (1) 12 TOTAL DEPRECIATION (Sum of Lines 9 to Line 11) 40,208,979 37,997,152 TAXES OTHER THAN INCOME TAXES 13 Taxes Other Than Income Taxes Appendix A Line 124 Projected Column 8,197,278 TP 0.9450 7,746,360 14 Reserved for Future Use (1) 15 PLANT RELATED 16 Reserved for Future Use (1) 17 Reserved for Future Use (1) 18 Reserved for Future Use (1) 19 Reserved for Future Use (1) 20 TOTAL OTHER TAXES (Sum of Line 13 to Line 19) 8,197,278 7,746,360 INCOME TAXES 21 Income Taxes Appendix A Line 157 Projected Column 44,006,734 TP 0.9450 41,585,999 22 Reserved for Future Use (1) 23 Reserved for Future Use (1) 24 Reserved for Future Use (1) 25 Reserved for Future Use (1) 26 Reserved for Future Use (1) 27 Total Income Taxes (Sum of Line 21 to Line 26) 44,006,734 41,585,999 RETURN 28 Rate Base times Return Appendix A Line 146 Projected Column 97,557,497 TP 0.9450 92,191,027 29 REV. REQUIREMENT (Line 8 + Line 12 + Line 20 + Line 27 + Line 28) 358,402,217 208,441,491 30 LESS ATTACHMENT GG ADJUSTMENT [Attachment GG, Page 2, Line 3, Column 10] [Revenue Requirement for facilities included on Page 2, Line 2 and also included in Attachment GG] Appendix A Line 167 Projected Column - DA 1.0000-30a LESS ATTACHMENT MM ADJUSTMENT [Attachment MM, Page 2, Line 3, Column 14] [Revenue Requirement for facilities included on Page 2, Line 2 and also included in Attachment MM] Appendix A Line 168 Projected Column - DA 1.0000-31 REV. REQUIREMENT TO BE COLLECTED UNDER ATTACHMENT O (Line 29 - Line 30 - Line 30a) 358,402,217 208,441,491
Attachment O-EAI Page 4 of 4 MISO Cover Formula Rate - Non-Levelized Rate Formula Template Utilizing FERC Form 1 Data Entergy Arkansas, Inc. Projected Rate (1) (2) (3) (4) (5) SUPPORTING CALCULATIONS AND NOTES Line No. TRANSMISSION PLANT INCLUDED IN ISO RATES 1 Total Transmission plant Appendix A Line 170 Projected Column 2,085,003,947 2 Less Transmission plant excluded from ISO rates Appendix A Line 171 Projected Column 114,692,474 3 Reserved for Future Use (1) 4 Transmission plant included in ISO rates (Line 1 - Line 2 - Line 3) 1,970,311,473 5 Percentage of Transmission plant included in ISO Rates (Line 4 / Line 1) TP = 0.9450 6-11 WAGES & SALARY ALLOCATOR (W&S) Form 1 Reference $ TP Allocation 12 Transmission Wages & Salary Expense Appendix A Line 1 Projected Column 11,674,378 0.9450 11,032,191 13 Transmission Wages & Salary Expense Adjustments Appendix A Line 2 Projected Column (136,667) 0.9450 (129,149) 14 Reserved for Future Use (1) W&S Allocator 15 Reserved for Future Use (1) ($ / Allocation) 16 Total Wages Expense Less A&G Appendix A Line 10 Projected Column 174,273,501 10,903,041 0.06256 = WS Reserved for Future Use (1) $ 17 Reserved for Future Use (1) - 18 Reserved for Future Use (1) - 19 Reserved for Future Use (1) - 20 Total (Sum of Line 17 to Line 19) - 21-26 RETURN (R) Cost $ % Weighted 27 Long Term Debt Appendix A Line 130 Projected Column 2,623,610,448 53.39% 4.18% 2.233% = WCLTD 28 Preferred Stock Appendix A Line 133 Projected Column 31,483,438 0.64% 16.74% 0.107% 29 Common Stock Appendix A Line 135 Projected Column 2,259,381,804 45.97% 10.82% 4.974% 30 Total (Sum of Lines 27 to 29) 4,914,475,689 7.315% = R REVENUE CREDITS ACCOUNT 447 (SALES FOR RESALE) 31 Reserved for Future Use (1) 32 Reserved for Future Use (1) 33 Total (Sum of Line 31 + Line 32) - 34 Account 454 (Rent From Electric Property: General Plant Only) Appendix A Line 180 Projected Column 52,019 Account 456.1 Other Electric Revenues 35 Account 456.1 Transmission Service Revenue Credits Appendix A Line 187 Projected Column 94,324,218 36 Account 456.1 Transmission Network & LTF Service Revenues Appendix A Line 188 Projected Column 93,630,937 36a Transmission Revenues Associated with Attachment GG Appendix A Line 189 Projected Column - 36b Transmission Revenues Associated with Attachment MM Appendix A Line 190 Projected Column - 37 Total (Line 35 - Line 36 - Line 36a - Line 36b) 693,281 INCOME TAX RATES 38 FIT = Appendix A Line 147 Projected Column 35.00% 39 SIT= Appendix A Line 148 Projected Column 6.50% (State Income Tax Rate or Composite SIT) 40 p = Appendix A Line 149 Projected Column 0.00% (% of FIT deductible for state purposes) Notes: (1) The above lines on this MISO Cover Rate Formula Template labeled "Reserved for Future Use" will not be used absent a Section 205 or 206 filing.
Formula Rate -- Appendix A Notes FERC Form 1 Page # or Reference True-up Projected A B C D E F G H Allocators (Note Y) Wages & Salary Allocation Factor 1 Transmission Wages Expense WP03 W&S Line 2 Column B 11,674,378 11,674,378 2 Adjustment to Transmission Wages Expense (Note FF) WP02 Support Line 5 Column C (136,667) (136,667) 3 Net Transmission Wage Expense (Line 1 + Line 2) 11,537,711 11,537,711 4 Total Wages Expense WP03 W&S Line 5 Column B 211,147,271 211,147,271 5 Adjustment to Wages Expense (Note FF) WP02 Support Line 8 Column C 40,496 40,496 6 Net Wages Expense (Line 4 + Line 5) 211,187,767 211,187,767 7 A&G Wages Expense WP03 W&S Line 8 Column B 36,750,269 36,750,269 8 Adjustment to A&G Wages Expense (Note FF) WP02 Support Line 11 Column C 163,997 163,997 9 Net A&G Wages Expense (Line 7 + Line 8) 36,914,266 36,914,266 10 Total Wages Expense Less A&G (Line 6 - Line 9) 174,273,501 174,273,501 11 Wages & Salary Allocator (Line 3 / Line 10) 6.6205% 6.6205% Plant Allocation Factors 12 Total Electric Plant In Service (Notes B & S) WP04 PIS Line 18, Line 16 Column K 10,048,429,600 10,443,915,388 13 Total Accumulated Depreciation Electric Plant (Notes B & S) WP04 PIS Line 37, Line 35 Column K 4,448,301,866 4,545,099,080 14 Net Electric Plant (Line 12 - Line 13) 5,600,127,734 5,898,816,308 15 TOTAL Plant In Service - Transmission (Line 27) 1,919,169,962 2,126,732,638 16 Gross Plant Allocator (Line 15 / Line 12) 19.0992% 20.3634% 17 TOTAL Net Property, Plant & Equipment - Transmission (Notes B & S) (Line 35) 1,416,803,710 1,615,633,550 18 Net Plant Allocator (Line 17 / Line 14) 25.2995% 27.3891% Plant Calculations Plant In Service 19 Transmission Plant in Service (Notes B & S) WP04 PIS Line 18, Line 16 Column F 1,879,107,154 2,003,998,511 20 Projected Transmission Plant Capital Additions (Notes B & S) WP05 CapAds Line 16 Column C 81,005,437 21 Total Transmission Plant In Service (Line19 + Line 20) 1,879,107,154 2,085,003,947 22 General (Notes B & S) WP04 PIS Line 18, Line 16 Column J 200,452,804 218,385,828 23 Intangible (Notes B & S) WP04 PIS Line 18, Line 16 Column B 404,683,330 411,912,933 24 Total General Plant and Intangibles (Line22 + Line 23) 605,136,134 630,298,762 25 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 26 General & Intangible Plant Allocated to Transmission (Line 24 * Line 25) 40,062,808 41,728,690 27 TOTAL Plant In Service - Transmission (Line 21 + Line 26) 1,919,169,962 2,126,732,638 Accumulated Depreciation 28 Total Transmission Accumulated Depreciation (Notes B & S) WP04 PIS Line 37, Line 35 Column F 475,677,923 483,750,388 29 Accumulated General Depreciation (Notes B, S & LL) WP04 PIS Line 37, Line 35 Column J 66,340,044 68,029,004 30 Accumulated Intangible Depreciation (Notes B & S) WP04 PIS Line 37, Line 35 Column B 336,778,787 345,064,511 31 Total General & Intangible Accumulated Depreciation (Sum Line 29 + Line 30) 403,118,832 413,093,515 32 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 33 General & Intangible Allocated to Transmission (Line 31 * Line 32) 26,688,329 27,348,700 34 TOTAL Accumulated Depreciation - Transmission (Line 28 + Line 33) 502,366,252 511,099,088 35 TOTAL Net Property, Plant & Equipment - Transmission (Line 27 - Line 34) 1,416,803,710 1,615,633,550 Adjustments To Rate Base ATTACHMENT O - Entergy Arkansas, Inc. ADIT (Note CC) 36 Transmission (Note JJ) WP06 ADIT Line 7 Columns F, J (23,781,139) (22,688,370) 37 Plant (Note JJ) WP06 ADIT Line 7 Columns G, K (1,398,275,343) (1,428,946,959) 38 Gross Plant Allocator (Line 16) 19.0992% 20.3634% 39 Total Transmission Allocated Plant (Line 37 * Line 38) (267,059,446) (290,981,689) 40 Labor (Note JJ) WP06 ADIT Line 7 Columns H, L (126,684,569) (133,865,252) 41 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 42 Total Transmission Allocated Labor (Line 40 * Line 41) (8,387,104) (8,862,498) 43 ADIT net of FASB 109 Allocated to Transmission (Line 36 + Line 39 + Line 42) (299,227,688) (322,532,557) 44 ADIT Credit - Account 255 (Note I) FF1 p.267.8.h - - Unfunded Reserves Rate Base Credits/Debits & Regulatory Assets 45 Transmission (Notes FF & KK) WP02 Support Line 27 Column E - - 46 Plant (Notes FF & KK) WP02 Support Line 27 Column F - - 47 Net Plant Allocation Factor (Line 18) 25.2995% 27.3891% 48 Total Transmission Allocated Plant (Line 46 * Line 47) - - 49 Labor (Notes FF & KK) WP02 Support Line 27 Column G 256,812,782 256,812,782 50 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 51 Total Transmission Allocated Labor (Line 49 * Line 50) 17,002,193 17,002,193 52 Unfunded Reserves Rate Base Credits/Debits (Note V) (Line 45 + Line 48 + Line 51) 17,002,193 17,002,193 Materials and Supplies 53 Transmission Materials & Supplies (Note KK) WP07 M&S Line 2 Column P 20,525,384 20,525,384 54 Undistributed Stores Expense (Notes A & KK) WP07 M&S Line 3 Column P 18,359,332 18,359,332 55 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 56 Total Transmission Allocated (Line 54 * Line 55) 1,215,473 1,215,473 57 Total Materials & Supplies Allocated to Transmission (Line 56 + Line 53) 21,740,857 21,740,857 Appendix A
ATTACHMENT O - Entergy Arkansas, Inc. Formula Rate -- Appendix A Notes FERC Form 1 Page # or Reference True-up Projected A B C D E F G H Prepayments 58 Transmission (Note KK) WP08 Prepay Line 8 Column E - - 59 Plant (Note KK) WP08 Prepay Line 8 Column F 4,587,491 4,587,491 60 Net Plant Allocation Factor (Line 18) 25.2995% 27.3891% 61 Total Transmission Allocated Plant (Line 59 * Line 60) 1,160,612 1,256,473 62 Labor (Note KK) WP08 Prepay Line 8 Column G 632,429 632,429 63 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 64 Total Transmission Allocated Labor (Line 62 * Line 63) 41,870 41,870 65 Prepayments Allocated to Transmission (Note A) (Line 58 + Line 61 + Line 64) 1,202,481 1,298,343 66 Electric Plant Held for Future Use (Notes B & C) WP09 PHFU Line 5 Columns O, N 532,591 532,591 Cash Working Capital 67 Operation & Maintenance Expense (Line 102) 30,458,088 30,604,451 68 Cash Working Capital Allowance (Note H) - - 69 Total Cash Working Capital Allocated to Transmission (Line 67 * Line 68) - - Network Credits 70 Outstanding Network Credits (Notes B & N) - - 71 Accumulated. Depreciation for Network Credits (Notes B & N) - - 72 Net Outstanding Credits (Line 70 - Line 71) - - 73 TOTAL Adjustment to Rate Base (Line 43 + Line 44 + Line 52 + Line 57 + Line 65 + Line 66 + Line 69 - Line 72 ) (258,749,566) (281,958,573) 74 Rate Base (Line 35 + Line 73) 1,158,054,144 1,333,674,977 O&M Transmission O&M (EOY) 75 Transmission O&M (Note O) FF1 p321.112.b 40,347,981 40,347,981 76 Less Accounts 561.0 to 561.8 (Note EE) FF1 p321 Sum Lines 85 to 92 Column B 10,139,053 10,139,053 77 Less Account 565 - Transmission of Electricity By Others FF1 p321.96.b 6,553,906 6,553,906 78 Plus Account 565 - Transmission Equalization Payments to Associated Companies FF1 p332.h - - 79 Plus O&M Adjustments (Note FF) WP02 Support Line 32 Column C (4,750,957) (4,750,957) 80 Transmission O&M (Line 75 - Line 76 - Line 77 + Line 78 + Line 79) 18,904,064 18,904,064 Allocated General Expenses (EOY) 81 Total A&G (Note O) FF1 p323.197.b 185,466,963 185,466,963 82 Less Post Retirement Benefits Other Than Pensions (Note D) WP12 PBOP Line 3 Column B - - 83 Less Property Insurance Account 924 FF1 p323.185.b 34,915,011 34,915,011 84 Less Regulatory Commission Expense Account 928 (Note E) FF1 p323.189.b 2,045,703 2,045,703 85 Less General Advertising Expense Account 930.1 FF1 p323.191.b 454,622 454,622 86 Less Selected Costs from 930.2 (Notes X & FF) WP02 Support Line 38 Column C (3,723,215) (3,723,215) 87 Less EPRI dues booked to A&G FF1 p353.f 141,610 141,610 88 Other A&G Adjustments (Note FF) WP02 Support Line 35 Column C (4,034,216) (4,034,216) 89 Adjusted A&G (Line 81 - Sum (82 to 87) + 88) 147,599,016 147,599,016 90 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 91 Allocated General Expenses (EOY) (Line 89 * 90) 9,771,737 9,771,737 Directly Assigned A&G 92 Regulatory Commission Expense Account 928 (Notes G & FF) WP02 Support Line 42 Column C 10,238 10,238 93 General Advertising Expense Account 930.1 - Transmission (Notes K & FF) - - 94 Subtotal - Transmission Related (Line 92 + 93) 10,238 10,238 95 96 Property Insurance Account 924 Without Storm Damage Accrual (Note F) WP10 Storm Line 28 Column D 7,004,287 7,004,287 97 General Advertising Acct 930.1 - Safety, Education & Outreach (Notes II & FF) - - 98 Total (Line 96 + 97) 7,004,287 7,004,287 99 Net Plant Allocation Factor (Line 18) 25.2995% 27.3891% 100 A&G Directly Assigned to Transmission (Line 98 * 99) 1,772,049 1,918,412 101 102 Total Transmission O&M (Line 80 + 91 + 94 + 100) 30,458,088 30,604,451 Depreciation & Amortization Expense Depreciation Expense (EOY) 103 Transmission Depreciation Expense (Note P) WP18 Deprec Line 6.14 Column C 38,380,240 38,380,240 104 105 Intangible Amortization (Note A) WP18 Deprec Line 4.08 Column C 16,288,967 16,288,967 106 General Plant Depreciation Expense (Notes A & P) WP18 Deprec Line 2.14 Column C 11,291,984 11,291,984 107 Other Adjustments Depreciation Expense & GPRD Amortization (Notes FF & LL) WP02 Support Line 48 Column C 41,570 41,570 108 Total (Line 105 + 106 + 107) 27,622,521 27,622,521 109 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 110 General & Intangible Allocated to Transmission (Line 108 * 109) 1,828,739 1,828,739 111 112 Total Transmission Depreciation & Amortization (Line 103 + 110) 40,208,979 40,208,979 Taxes Other than Income 113 Transmission Associated TOTI WP13 TOTI Line 2 Column D - - 114 115 Plant Associated WP13 TOTI Line 2 Column E 35,986,762 35,986,762 116 Plus Adjustment to Plant Associated (Note FF) WP02 Support Line 53 Column C (161,456) (161,456) 117 Total Plant Associated (Line 115 + 116) 35,825,306 35,825,306 118 Gross Plant Allocator (Line 16) 19.0992% 20.3634% 119 Total Transmission Allocated Total Plant Associated (Line 117 * 118) 6,842,348 7,295,238 120 121 Labor WP13 TOTI Line 2 Column F 13,625,032 13,625,032 Appendix A
ATTACHMENT O - Entergy Arkansas, Inc. Formula Rate -- Appendix A Notes FERC Form 1 Page # or Reference True-up Projected A B C D E F G H 122 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 123 Total Transmission Allocated Labor (Line 121 * 122) 902,040 902,040 124 Total Taxes Other than Income (EOY) (Line 113 + 119 + 123) 7,744,388 8,197,278 (Gain) or Loss on Sale of Assets 125 (Gain) or Loss on Sales of Transmission Assets Enter Gains as Negative Value & Losses as Positive Values - - 126 (Gain) or Loss on Sales of General Plant Assets Enter Gains as Negative Value & Losses as Positive Values - - 127 Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 128 Total Allocated (Gain) or Loss on Sales of General Plant Assets (Line 126 * 127) - - 129 Total (Gain) or Loss on Sales of Assets (Note DD) (Line 125 + 128) - - Return / Capitalization Calculations 130 Long Term Debt - Gross Proceeds (Notes R & HH) WP14 COC Line 6 Column P, Column O 2,604,902,229 2,623,610,448 131 Long Term Debt - Net Proceeds (Notes R & HH) WP14 COC Line 14 Column P, Column O 2,548,362,795 2,563,431,227 132 Long Term Debt Cost - Total (Notes Q & R) WP14 COC Line 24 Column O 107,238,380 107,238,380 133 Preferred Stock (Note HH) WP14 COC Line 33 Column P, Column O 89,115,891 31,483,438 134 Preferred Dividend WP14 COC Line 35 Column O 5,269,823 5,269,823 135 Common Stock - Total (Note HH) WP14 COC Line 42 Column P, Column O 2,129,523,156 2,259,381,804 136 Debt Capitalization Total Long Term Debt (1 - (Line 137 + Line 138)) 54.00% 53.39% 137 Preferred Capitalization Preferred Stock (Line 133 / (Line 130 + Line 133 + Line 135)) 1.85% 0.64% 138 Common Capitalization Common Stock (Line 135 / (Line 130 + Line 133 + Line 135)) 44.15% 45.97% 139 Debt Cost Long Term Debt Cost = LT Debt Cost / (Line 132 / Line 131) 4.21% 4.18% 140 Preferred Cost Preferred Stock cost = Preferred (Line 134 / Line 133) 5.91% 16.74% 141 Common Cost Common Stock (Note J) 11.98% 10.82% 142 Weighted Cost of Debt (Line 136 * 139) 2.27% 2.23% 143 Weighted Cost of Preferred (Line 137 * 140) 0.11% 0.11% 144 Weighted Cost of Common (Line 138 * 141) 5.29% 4.97% 145 Total Return ( R ) (Line 142 + Line 143 + Line 144) 7.67% 7.31% 146 Investment Return = Rate Base * Rate of Return (Line 74 * Line 145) 88,806,903 97,557,497 Composite Income Taxes Income Tax Rates 147 FIT=Federal Income Tax Rate (Note I) 35.00% 35.00% 148 SIT=State Income Tax Rate or Composite (Note I) 6.50% 6.50% 149 p = Percent of Federal Inc Tax Deductible for State Inc Tax (Note I) 0.00% 0.00% 150 T = 1-{[(1-SIT) * (1-FIT)]/(1-SIT * FIT * p)} 39.23% 39.23% 151 T/ (1-T) 64.54% 64.54% Income Tax Adjustments (Note I) 152 Amortization Investment Tax Credit-Elect Enter as negative (Note A) FF1 266.8.f (1,201,284) (1,201,284) 152a Net Plant Allocation Factor (Line 18) 25.2995% 27.3891% 152b Amortization of Income Tax Adjustments - WP22 IT Adj Line 5 Column C 459,919 459,919 Transmission Related 152c Amortization of Income Tax Adjustments - WP22 IT Adj Line 5 Column D 460,946 460,946 Labor Related 152d Wage & Salary Allocation Factor (Line 11) 6.6205% 6.6205% 152e Total Income Tax Adjustments (Line 152 * Line 152a) + Line 152b + 186,517 161,415 (Line 152c * Line 152d) 153 1/(1-T) (1 / (1 - Line 150)) 1.6454 1.6454 154 Reserved for Future Use 155 Total Allocated Income Tax Adjustments (Line 152e * Line 153) 306,898 265,594 156 Income Tax Component = CIT=(T/1-T) * Investment Return * (1- [Line 151 * Line 146 * (1 - (Line 142 / Line 145))] 40,331,552 43,741,140 (WCLTD/R)) = 157 Total Income Taxes (Line 155 + Line 156) 40,638,449 44,006,734 Revenue Requirement Summary 158 TOTAL Net Property, Plant & Equipment - Transmission (Line 35) 1,416,803,710 1,615,633,550 159 Adjustment to Rate Base (Line 73) (258,749,566) (281,958,573) 160 Rate Base (Line 74) 1,158,054,144 1,333,674,977 161 O&M (Line 102) 30,458,088 30,604,451 162 Depreciation & Amortization (Line 112) 40,208,979 40,208,979 163 Taxes Other than Income (Line 124) 7,744,388 8,197,278 164 (Gain) or Loss on Sale of Assets (Line 129) - - 165 Investment Return (Line 146) 88,806,903 97,557,497 166 Income Taxes (Line 157) 40,638,449 44,006,734 167 Less Attachment GG Adj. (Note T) - - 168 Less Attachment MM Adj. (Note U) - - 169 Gross Revenue Requirement Sum of (Line 161 to Line 166) - Line 167 - Line 168 207,856,807 220,574,938 Adjustment to Remove Revenue Requirements Associated with Excluded Transmission Facilities 170 Total Transmission Plant In Service (Line 21) 1,879,107,154 2,085,003,947 171 Excluded Transmission Facilities (Notes B, M, S) WP02 Support Line 58 Columns C & E 110,852,937 114,692,474 172 Included Transmission Facilities (Line 170 - Line 171) 1,768,254,217 1,970,311,473 173 Inclusion Ratio (Line 172 / Line 170) 94.10% 94.50% 174 Gross Revenue Requirement (Line 169) 207,856,807 220,574,938 175 Adjusted Gross Revenue Requirement (Line 173 * Line 174) 195,594,846 208,441,491 Appendix A