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{{Adams
#REDIRECT [[CNRO-2017-00010, Entergy Operations, Inc. - Decommissioning Funding Status Report]]
| number = ML17093A933
| issue date = 03/31/2017
| title = Entergy Operations, Inc. - Decommissioning Funding Status Report
| author name = Ford B S
| author affiliation = Entergy Operations, Inc
| addressee name =
| addressee affiliation = NRC/Document Control Desk, NRC/NRR
| docket = 05000313, 05000368, 05000382, 05000416, 05000458
| license number =
| contact person =
| case reference number = CNRO-2017-00010
| document type = Letter, Status Report
| page count = 38
}}
 
=Text=
{{#Wiki_filter:EntergyOperations, Inc.EntergyBryanS.FordSeniorManager,FleetRegulatory Assurance CNRO-2017-00010March31,2017U.S.NucfearRegulatory Commission Attn:DocumentControlDeskI1555Rockville PikeRockville, MD20852-2738
 
==SUBJECT:==
Decommissioning FundingStatusReport-EntergyOperations, IncArkansasNuclearOne,UnitsI&2RiverBendStationDockets50-313&50-368Docket50-458GrandGulfNuclearStationWaterlord 3SteamElectricStationDocket50-416Docket50-382
 
==References:==
 
1.NUREG-1307, "ReportonWasteBurialCharges,"
Revision16,datedNovember2016.2.NRCRegulatory IssueSummary2001-07,"10CFR50.75(f)(1)
ReportsontheStatusofDecommissioning Funds(DueMarch31,2001)."
 
==DearSirorMadam:==
10CFR50.75(f)(1) requireseachpowerreactorlicenseetoreporttotheNRCbyMarch31,I999,andeverytwoyearsthereafter, onthestatusofitsdecommissioning fundingforeachreactor,orshareofareactor,thatitowns.OnbehalfofEntergyArkansas, Inc.forArkansasNuclearOne(ANO),SystemEntergyResources, Inc.(SERI)andCooperative Energy1(formerly SouthMississippi ElectricPowerAssociation (SMEPA))forGrandGulfNuclearStation(GGNS),EntergyLouisiana, LLCforforRiverBendStation(RBS)andWaterford 3SteamElectricStation(WF3),EntergyOperations, Inc.herebysubmitstheinformation requested forpowerreactorsoperatedbyEntergyOperations, Inc.Theestimated minimumdecommissioning fundvaluesweredetermined usingtheNRC'smethodology inNUREG-1307 Rev16.1March29,2017,EntergyOperations, Inc.submitted alicenseamendment requesttotheNRCseekingadministrative changestotheGrandGulflicensetoreflectthenewnameCooperative Energy.NRCAccession No.ML17088A759.
CNRO-2017-00010Page2of5The70percentregulated interestofRBScontainsfundsaccumulated forseparaterateregulatory jurisdictions.
Therearenotseparatetrustfundsfortheindividual jurisdictions responsible fordecommissioning ofthe70percentregulated shareofRBS.Balancesinthenucleardecommissioning trustforthe70percentregulated shareofRBSattributable totheseparatejurisdictions areaccounted forbytheTrustee,theBankofNewYorkMellon.Thefollowing information providesthebalancesinthe70percentregulated sharetrustattributable toeachoftherelevantjurisdictions asofDecember31,2016:Louisiana
$149,697,311 Texas$191,768,798 FERC$10,062,919 Thetrustfundamountsreportedforeachfacilityintheresponses toitem3represent themarketvalueofdecommissioning trustfundsasofDecember31,2016netofanymaterialcurrentincometaxliability onrealizedgains,interest, dividends andotherincomeofthetrusts.Cooperative Energyisanot-for-profit electriccooperative, andisexemptfromfederalincometax.Accordingly, theamountsreportedasofDecember31,2016offundsseparately accumulated byCooperative EnergyforGGNSdecommissioning wereafter-tax amounts.Thetrustsforthefollowing plantshadbalancesontheir2016taxliabilities (inthousands),
notreflected inthetrustfundbalances, asfollows(doesnotincludeCooperative Energy):ANO$8GGNS$0RBS$68WF3$0Inaccordance withguidanceprovidedbytheNRCStaffinApril2014requestsforadditional information (Accession No.ML14120A273) that"[fluture 10CFR50.75(f)reportsshouldclearlydelineate estimatereactorandISFSIdecommissioningcosts,"the information inAttachments 1-4includeslineitem2identifying theISFSIdecommissioning obligation, escalated fromthemostrecent10CFR72.30filing.Thisobligation isalsoaccounted forintheExcess/Shortfall calculations foreachplantinAttachment 5.Theinformation providedinAttachments 1-4isbasedonNRCRegulatory IssueSummary2001-07.Consistent withyourletterdatedMarch11,2011(Accession No.ML1I0280410),
weareproviding withthissubmittal orincorporating byreference certainagreements providing fororiginal(notresale)nuclearplantpowersales(thatmay,fromtimetotime,includedecommissioning collections) betweenEntergyoperating companies thatinvokeFederalEnergyRegulatory Commission (FERC)tariffs.Considering theseagreements andtheapplicable NRCregulations, Entergyrespectfully assertsthattheserate-making tariffsshouldnotbeviewedas"contractual obligations" asthattermisusedwithin10CFR50.75(e)(1)(v).
Thesearrangements describeexchanges amongregulated utilities thatoperatewithintheconfinesofaFERC-approved tariff,undertheratemaking jurisdiction oftheFERC.Assuch,thevariousagreements aresimplyextensions oftheFERCtariffandnotthetypeof"contractual obligations" contemplated by10CFR50.75(e)(1)(v),
andEntergy's decommissioning fundingisstillprovidedbytheexternalsinkingfundmethodinaccordance with10CFR50.75(e)(1)(ii).
Inanabundance ofcautionandinaspiritofcooperation, however,Entergyisproviding orincorporating varioustariffagreements foreachaffectedplant.
CNRO-2017-00010Page3of5Additionally, Attachment 5includesMinimumFundingAssurance calculation worksheets (notrequiredforthisfiling)derivedfromLIC-205Revision4fortheplants,providedfortheconvenience ofthereviewer.
Theaforementioned worksheets, usingtheDecember31,2016trustfundbalances, indicatethatalloftheplantscoveredbythissubmittal metorexceededtheNRC'sfundingrequirements.
Thissubmittal containsnonewcommitments.
Pleaseaddressanycommentsorquestions regarding thismattertomeat601-368-5516.
Sincerely, BSF/L]Scc:nextpage cc:Mr.A.C.Bakken(ECH)Mr.L.Coyle(ECH)Mrs.D.Jacobs(ECH)Mr.B.F.Ford(ECH)Mr.J.R.Davis(ECH)Mr.L.J.Smith(ECH)Mr.R.L.Anderson(ANO)Mr.E.A.Larson(GGN)Mr.W.F.Maguire(RBS)Mr.M.R.Chisum(WF3)USNRCRegionalAdministrator, RegionIVUSNRCProjectManager,ANOUSNRCProjectManager,GGNUSNRCProjectManager,RBSUSNRCProjectManager,WF3USNRCResidentInspector, ANOUSNRCResidentInspector, GGNUSNRCResidentInspector, RBSUSNRCResidentInspector, WF3ArkansasDepartment ofHealthMississippi Department ofHealthLouisiana Department ofEnvironmental QualityCNRO-2017-00010Page4of5 Attachments:
I.EntergyArkansas, Inc.-ANO1&2StatusReports1-AEntergyArkansas, Inc.-Calculation ofMinimumAmount1-BScheduleofRemaining Principal Payments-ANO-22.SERI&Cooperative Energy-GGNSStatusReport2-ASERI&Cooperative Energy-Calculation ofMinimumAmount2-BScheduleofRemaining Principal Payments-GGNS3.EntergyLouisiana, LLCRBSStatusReport-70%Regulated 3-AEntergyLouisiana, LLC-Calculation ofMinimumAmount3-BScheduleofRemaining Principal Payments-RBS3-CEntergyLouisiana, LLCRBSStatusReport-30%Non-Regulated 3-DRiverBend70%PurchasePowerAgreement 4.EntergyLouisiana, LLC-Waterlord 3StatusReport4-AEntergyLouisiana, LLC-Calculation ofMinimumAmount4-BScheduleofRemaining Principal Payments-Waterlord 35.MinimumFundingAssurance Calculation Worksheets CNRO-2017-00010Page5of5 Attachment I(Page1of2)ENTERGYARKANSAS, INC.StatusReportofDecommissioning FundingForYearEndingDecember31,2016-10CFR50.75(f)(1)
PlantName:ArkansasNuclearOneUnitI(ANO1)IMinimumFinancial Assurance (MFA)Estimated per10CFR50.75(b)and(c)(2016$):$450.0million12.ISFSIObligation asof12/31/14$4.68million23.Decommissioning TrustFundTotalAsof12/31/14:
$466.3million4.Annualamountsremaining tobecollected:
5.Assumptions usedindetermining ratesofescalation indecommissioning costs,ratesofearningsondecommissioning funds,andratesofotherfactorsusedinfundingprojections 2%annualrealrateofreturnper10CFR50.75(e)(1)(i) 6.Contracts uponwhichlicenseeisrelyingForDecommissioning Funding:None7.Modifications toMethodofFinancial Assurance sinceLastReport:None8.MaterialChangestoTrustAgreements:
NoneISeeAttachment 1-A2FromEntergy's ISFSIDecommissioning FundingPlansPursuantto 10CFR72.30,December17,2015(Accession No.ML15351A523),
escalated forinflation.
3Decommissioning fundinghasbeensuspended bytheArkansasPublicServiceCommission inDocketNo.87-166-TF.
TheNRChasgrantedlicenserenewalto5/2034.
Attachment 1(Page2of2)ENTERGYARKANSAS, INC.StatusReportofDecommissioning FundingForYearEndingDecember31,2016-I0CFR50.75(f)(1)
PlantName:ArkansasNuclearOneUnit2(ANO2)I.MinimumFinancial Assurance (MFA)Estimated perlOCFR5O.75(b) and(c)(2016$):$468.6million12.ISFSIObligation asof12/31/16$4.68million23.Decommissioning FundTotalAsof12/31/16:
$368.4million4.Annualamountsremaining tobecollected:
SeeAttachment 1-B35.Assumptions usedindetermining ratesofescalation indecommissioning costs,ratesofearningsondecommissioning funds,andratesofotherfactorsusedinfundingprojections:
2%annualrealrateofreturnper10CFR50.75(e)(1)(i) 6.Contracts uponwhichlicenseeisrelyingNoneForDecommissioning Funding:7.Modifications toMethodofFinancial Assurance sinceLastReport:None8.MaterialChangestoTrustAgreements:
None1SeeAttachment 1-A2FromEntergy's ISFSlDecommissioning FundingPlansPursuantto 10CFR72.30,December17,2015(Accession No.ML15351A523),
escalated forinflation.
3Decommissioning fundinghasbeenallowedbytheArkansasPublicServiceCommission inRevisedAttachment AtoRiderNDCRinDocketNo.87-166-TF.
Attachment 1-A(Page1of1)ENTERGYARKANSAS, INC.Calculation ofMinimumAmountForYearEndingDecember31,2016-10CFR50.75(f)(1)
EntergyArkansas, Inc.:100%ownership interestPlantLocation:
Russellville, ArkansasReactorType:Pressurized WaterReactor('PWR")ANOUnitIPowerLevel:<3,400MWt(2,568MWt)ANOUnitIPWRBaseYear1986$:$97,598,400 ANOUnit2PowerLevel:<3,400MWt(3,026MWt)ANOUnit2PWRBaseYear1986$:$101,628,800 LaborRegion:SouthWasteBurialFacility:
GenericDisposalSiteIOCFR5O.75(c)(2)
Escalation FactorFormula:0.65(L)+0.13(E)+0.22(B)FactorL=Labor(South)2.501E=Energy(PWR)I.872B=WasteBurial-Vendor (PWR)12.471PWREscalation Factor:0.65(L)+0.13(E)+0.22(B)=
4.610981986PWRBaseYear$Escalated:
ANOI:$97,598,400 Factor=$450,023,926 ANO2:$101,628,800
*Factor=$468,608,006 1BureauofLaborStatistics, SeriesReportID:CIU2010000000220i (4thQuarter2016)2BureauofLaborStatistics, SeriesReportID:wpu0543andwpu0573(December 2016)3NuclearRegulatory Commission:
NUREG-1307 Revision16,Table2.1(2016)
Attachment 1-B(Page1of1)ScheduleofRemaining Principal PaymentsintoANO-2Decommissioning Fund($Thousands)
ANO-2Total2017$2,450$2,4502018$2,450$2,4502019$2,450$2,4502020$2,450$2,4502021$2,450$2,4502022$2,450$2,4502023$2,450$2,4502024$2,450$2,4502025$2,450$2,4502026$2,450$2,4502027$2,450$2,4502028$2,450$2,4502029$2,450$2,4502030$2,450$2,4502031$2,450$2,4502032$2,450$2,4502033$2,450$2,4502034$2,450$2,4502035$2,450$2,4502036$2,450$2,4502037$2,450$2,4502038$2,450$2,450Note:ApprovedinRevisedAttachment AtoRiderNDCRinDocketNo.87-166-TF Attachment 2(Page1of1)SYSTEMENERGYRESOURCES, INC.andSOUTHMISSISSIPPI ELECTRICPOWERASSOCIATION StatusReportofDecommissioning FundingForYearEndingDecember31,2016-10CFR5075(f)(1)
PlantName:GrandGulfStation(Owned&leased90%bySystemEnergyResources, Inc(SERI)and10%byCooperative Energy)1.MinimumFinancial Assurance (MFA)Estimated per10CFR50.75(b)and(c)(2016$):SERI(90%ownership share)$577.9million1Cooperative Energy(10%ownership share)$64.2million2.ISFSIObligation asof12/31/162 SERI$9.16millionCooperative Energy$1.02million3.Decommissioning FundTotalasof12/31/16:
SERI$780.5millionCooperative Energy$64.4million4.Annualamountsremaining tobecollected:
SeeAttachment 2-B5.Assumptions used:RateofEscalation ofDecommissioning Costs:SERISeeitembelowCooperative Energy3.0%RateofEarningsonDecommissioning Funds:SERI2%realrateofreturnper10CFR50.75(e)(1)(i)
Cooperative EnergyApprox.2.91%Authority foruseofRealEarningsOver2%:SERIN/ACooperative EnergyCooperative EnergyBoard6.Contracts uponwhichlicenseeisrelyingForDecommissioning Funding:Seefootnote4 7.Modifications toMethodofFinancial Assurance sinceLastReport:None8.MaterialChangestoTrustAgreements:
SERINoneCooperative EnergyNone1SeeAttachment 2-A2FromEntergy's ISFSIDecommissioning FundingPlansPursuantto 10CFR72.30,December17,2015(Accession No.ML15351A523),
escalated forinflation.
3Established byCooperative Energyboardresolution.
Acopyofthatresolution waspreviously providedinthelicensee's March27,2015decommissioning financial assurance filingasAttachment 2-C,Accession No.ML15092A183, andisincorporated hereinbyreference.
4SeetheUnitPowerSalesAgreement andtheAvailability Agreement, FERCtariffs,previously providedinthelicensee's March27,2015decommissioning financial assurance filingasAttachment 2-D,Accession No.ML15092A183,incorporated hereinbyreference.
Itisthelicensee's positionthattheseagreement arenot10CFR&sect;50.75(e)(1
)(v)"contractual obligations,"
butrathercostofservicetariffswhichmayappropriately beusedtofundtheexternalsinkingfundinaccordance with10CFR&sect;50.75(e)(1
)(ii).Outofabundance ofcaution,thelicenseeidentifies thisinformation here.
Attachment 2-A(Page1of1)SYSTEMENERGYRESOURCES, INC.andCOOPERATIVE ENERGYCalculation ofMinimumAmountForYearEndingDecember31,2016-10CFR50.75(f)(1)
SystemEnergyResources, Inc.:90%ownership/leasehold interestCooperative Energy:10%ownership interestPlantLocation:
PortGibson,Mississippi ReactorType:BoilingWaterReactor("BWR")PowerLevel:>3,400MWtBWRBaseYear1986$:$135,000,000 LaborRegion:SouthWasteBurialFacility:
GenericDisposalSiteIOCFR5O.75(c)(2)
Escalation FactorFormula:0.65(L)+0.13(E)+0.22(B)FactorL=Labor(South)2.501E=Energy(BWR)1.872B=WasteBurial-Vendor (BWR)13.132BWREscalation Factor:065(L)+0.13(E)+0.22(B)=
4.756251986BWRBaseYear$Escalated:
$135,000,000 Factor=$642,093,163 SystemEnergyinterest(90%):$577,883,847 Cooperative Energyinterest(10%):$64,209,316 Total$642,093,163 1BureauofLaborStatistics, SeriesReportID:C1U2010000000220i (4thQuarter2016)2BureauofLaborStatistics, SeriesReportID:wpu0543andwpu0573(December 2016)3NuclearRegulatory Commission:
NUREG-1307RevisionI6,Table2.1(2016)
Attachment 2-B(Page1of1)ScheduleofRemaining Principal PaymentsintoGrandGulfDecommissioning Fund($Thousands)
SERIShareCooperative EnergyShareTotal2017$24,550$0$24,5502018$24,550$0$24,5502019$24,550$0$24,5502020$24,550$0$24,5502021$29,878$0$29,8782022$17,429$0$17,4292023$0Thereafter
$0$0Thereafter Note:ApprovedinFERCDocketNo.ER95-1042-004.Acopyoftheorderinthatdocketwaspreviously providedinthelicensee's March27,2015decommissioning financial assurance filingasAttachment 2-D,Accession No.MLI5092A183,andisincorporated hereinbyreference.
Attachment 3(Page1of1)ENTERGYLOUISIANA, LLCStatusReportofDecommissioning FundingForYearEndingDecember31,2016-I0CFR50.75(f)(1)
PlantName:RiverBendStation(70%Regulated Interest) 1.MinimumFinancial Assurance (MFA)Estimated per10CFR50.75(b)and(c)(2016$):$438.9million12.ISFSIObligation asof12/31/16$5.07million23.Decommissioning FundTotalAsof12/31/16:
$351.5million4.Annualamountsremaining tobecollected:
SeeAttachment 3-B5.Assumptions used:RateofEscalation ofDecommissioning Costs:SeeitembelowRateofEarningsonDecommissioning Funds:2%realrateofreturnper10CFR50.75(e)(1)(i)
..4Authority foruseofRealEarningsOver2%:N/A6.Contracts uponwhichlicenseeisrelyingForDecommissioning Funding:Seefootnote7.Modifications toMethodofFinancial Assurance sinceLastReport:None8.MaterialChangestoTrustAgreements:
None1SeeAttachment 3-A.2FromEntergy's ISFSIDecommissioning FundingPlansPursuantto 10CFR72.30,December17,2015(Accession No.ML15351A523),
70%ofRiverBendvalue,escalated forinflation.
3Seetheagreement inattachment 3-Dforaunitpowerpurchaseagreement underaFERCtarifffortheTexas-jurisdictional shareoftheRiverBend70%share.Thelicenseebelievesthiscontractdoesnotqualifyasacontractual obligation, butratherissimplyacostofservicerecoverymechanism asdefinedinI0CFR&sect;50.75(e)(1
)(ii)(A).
Outofanabundance ofcaution,thelicenseeidentifies thisinformation here.
Attachment 3-A(Page1ofI)ENTERGYLOUISIANA, LLCCalculation ofMinimumAmountForYearEndingDecember31,2016-10CFR50.75(f)(1)
EntergyLouisiana, LLC:Factorsbelowusedforallofownership interests PlantLocation:
WestFeliciana Parish,Louisiana ReactorType:BoilingWaterReactor("BWR")PowerLevel:<3,400MWt(3,091MWt)BWRBaseYear1986$:$131,819,000 LaborRegion:SouthWasteBurialFacility:
GenericDisposalSiteIOCFR5O.75(c)(2)
Escalation FactorFormula:0.65(L)+0.13(E)+0.22(B)FactorL=Labor(South)2.501E=Energy(BWR)1.872BWasteBurial-Vendor (BWR)I3.132BWREscalation Factor:0.65(L)+0.13(E)+0.22(B)=
4.756251986BWRBaseYear$Escalated:
$131,819,000
*Factor=$626,963,546 RivetBend70%Regulated Interest:
$438,874,482 RivetBend30%Non-Regulated Intetest:
$188,089064 Total$626,963,546 1BureauofLaborStatistics, SeriesReportID:C1U2010000000220i (4thQuarter2016)2BureauofLaborStatistics, SeriesReportID:wpu0543andwpuO5Z3(December 2016)3NuclearRegulatory Commission:
NUREG-1307 Revision16,Table2.1(2016)
YearLPSC2017$8,9962018$8,9962019$8,9962020$10,1952021$10,1952022$10,1952023$10,1952024$10,1952025$11,6932026$11,6932027$11,6932028$11,6932029$11,6932030$13,513PUCT$1,126$1,126$1,126$1,126$1,126$1,126$1,126$1,126$1,126$0$0$0$0$0Attachment 3-B(Page1of1)ScheduleofRemaining Principal PaymentsintoRiverBendDecommissioning Fund($Thousands)
Note:ApprovedinLPSCDocketNo.U-31237; PUCTOrderinDocketNo.39896;FERCOrderinDocketNos.ER86-558-002.
Copiesofthoseorderswerepreviously providedinthelicensee's March27,2015decommissioning financial assurance filingasAttachments 3-D,3-Eand3-F,respectively, Accession No.MLI5092A183,andareincorporated hereinbyreference.
FERC$113$113$113$113$113$113$113$113$165$0$0$0$0$0Total$10,234$10,234$10,235$11,434$11,434$11,434$11,434$11,434$12,984$11,693$11,693$11,693$11,693$13,513 Attachment 3-C(Page1of1)ENTERGYLOUISIANA, LLCStatusReportofDecommissioning FundingForYearEndingDecember31,2016-10CFR50.75(f)(1)
PlantName:RiverBendStation(30%Non-Regulated Interest)
I.MinimumFinancial Assurance (MFA)Estimated per10CFR5075(b)and(c)(2016$):$188.1million12.ISFSIObligation asof12/31/16$2.17million23.Decommissioning FundTotalAsof12/31/16:
$361.3million4.Annualamountsremaining tobecollected:
None5.Assumptions used:RateofEscalation ofDecommissioning Costs:SeenextitemRateofEarningsonDecommissioning Funds:2%realrateofreturnper10CFR50.75(e)(1)(i)
Authority foruseofRealEarningsOver2%:N/A6.Contracts uponwhichlicenseeisrelyingForDecommissioning Funding:None37.Modifications toMethodofFinancial Assurance sinceLastReport:None8.MaterialChangestoTrustAgreements:
None1SeeAttachment 3-A.2FromEntergy's lSFSlDecommissioning FundingPlansPursuantto 10CFR72.30,December17,2015(Accession No.ML15351A523),
30%ofRiverBendvalue,escalated forinflation.
3AportionoftheRiverBend30%shareissoldundercontracttoEntergyNewOrleans,Inc.,butsincethe30%shareisfullyfundedwithapre-paiddecommissioning fund,thelicenseedoesnotrelyonthiscontractfordecommissioning.
Attachment 3-DRiverBend70%PurchasePowerAgreement AGREEMENT ThisAgreement isdatedasofSeptember 1,2016,betweenEntergyTexas,Inc.("ElI"or"Buyer"),
andEntergyLouisiana, LLC("ELL"or"Seller").
WHEREAS,Sellerhasagreedtomakeaunitpowersalefromthedesignated unitssetforthonAttachment A(individually a"Designated Unit"andcollectively "Designated Units")toBuyer;andWHEREAS,theagreement amongtheformerEntergyLouisiana, LLC("Entergy Louisiana"),
EntergyMississippi, Inc.,EntergyNewOrleans,Inc.,andEntergyArkansas, Inc.,(collectively the"Companies"),
andEntergyServices, Inc.("ESI")wasfiledwithFERConApril30,1982,andbecameeffective onJanuary1,1983,andamendedtoincorporate EntergyGulfStates,Inc.("EGS")in1993anditssuccessor, EntergyGulfStatesLouisiana, L.L.C.("EGSL"),
andETIin2008(hereinafter referredtoasthe"SystemAgreement");
andWHEREAS,onOctober1,2015,EGSLandEntergyLouisiana completed atransaction inwhichEGSLandEntergyLouisiana combinedsubstantially alloftheirrespective assetsandliabilities intoasinglesuccessor publicutilityoperatingcompanynow knownasELL;andWHEREAS,onOctober30,2015,ELLsucceeded tothetariffsandrateschedules ofEGSLandEntergyLouisiana; andWHEREAS,pursuanttoaSettlement Agreement approvedbyFERCinDocketNos.ER14-75,etal.,onDecember29,2015,theSystemAgreement willterminate effective August31,2016at11:59:59PMCentralDaylightTime;andWHEREAS,thepartieshereinpreviously executedthisAgreement toprovideforaunitpowerpurchasebyBuyerunderServiceScheduleMSS-4fromtheDesignated Units;and WHEREAS,upontermination oftheSystemAgreement, thePartiesintendtoapplythetermsandconditions oftheUnitPowerSalesandDesignated PowerPurchases TariffacceptedbyFERCinDocketNo.ER13-1508
("SalesandPurchases Tariff'),
whichisdesignedtoreplicate SystemAgreement ServiceScheduleMSS-4astheumbrellatariffforthisAgreement; THEREFORE, thepartiesagreeasfollows:1.Designated Units.Thedesignated generating unitsforpurposesofthisunitpowersaleundertheSalesandPurchases TariffshallbethoseunitssetforthonAttachment A.2.UnitPowerPurchase.
SelleragreestosellandBuyeragreestopurchasethatquantityofgenerating capacityandassociated energyfromtheDesignated Unitsequivalent tothepercentage (the"Allocated Percentage")
ofSeller'scapacityineachsuchDesignated UnitsetforthonAttachment A.3.Pricing.Thepricingofthecapacityandenergytobesoldandpurchased pursuanttoparagraph 2aboveshallbeasspecified intheSalesandPurchases Tariffhowever,theinputvaluesfordecommissioning, Generating PlantAccounts(DGUPTPLT),
Accumulated Provision forDepreciation (DGUUR),Accumulated DeferredIncomeTaxes(DGUADIT),
andDepreciation Expense(DGUDE)willreflecttheratemaking decisions ofthePublicUtilityCommission ofTexas.Inaddition, theOperations andMaintenance expenseswillbereducedbythe30%portionallocable totheunregulated portionofRiverBendStation,whichisnotinretailratebase.This30%portionofRiverBendStationwasformerlyownedbyCajunElectricPowerCooperative beforeitwasownedbyEGSLandnowELL.ShouldthetrustfundssetasideforBuyer'sshareoftheresponsibility forRiverBendStationdecommissioning befoundtobeinsufficient tocovertheaforesaid Buyer'sshareofthecostforsuchdecommissioning, BuyerwillpromptlypaytoSellersuchdeficit.TheBuyerwillfullypayfortheBuyer'sshareofthedecommissioning responsibility forRiverBendnotwithstanding theoperational statusofRiverBendoranyforcemajeureprovisions.
Allproceedsfromdecommissioning collections undertheSalesandPurchases TariffpursuanttothisAgreement willbedeposited totheexternalsinkingfund(s)thatcollect(s)
Buyer'sdecommissioning funding.4.EnergyEntitlement.
BuyerisentitledtoreceiveonanhourlybasistheAllocated Percentage oftheenergygenerated byeachoftheDesignated Units.5.Term.ThetermofthisAgreement shallbetheoperating lifeoftheDesignated Units,plusanytimerequiredtodecommission theDesignated Units.6.Termination.
Neitherpartyshallhavetherighttoterminate theunitpowerpurchaseandsalerequiredbythisAgreement withouttheexpresswrittenconsentoftheotherparty.7.Assignment.
ThisAgreement isnotassignable byBuyerwithouttheconsentofSeller,andSellermustconsenttoanytransferorassignment toanyneworrestructured entityresulting fromanyrestructuring orbusinesscombination ofBuyer,theeffectofwhichwouldcauseasuccessor tobecomeapartyhereto.Anyassignment approvedbySellershallbeontermsasthenagreed.8.Condition Precedent.
Thiscontractshallbeconditioned uponBuyerreceiving allregulatory approvals requiredforthisAgreement.
9.Notices.Unlessspecifically statedotherwise herein,anynoticetobegivenhereunder shallbesentbyRegistered Mail,postageprepaid,tothepartytobe notifiedattheaddresssetforthbelow,andshallbedeemedgivenwhensomailed.ToETI:EntergyTexas,Inc.10055GrogansMillRoadTheWoodlands, TX77380ATTh:ChiefExecutive OfficerToELL:EntergyLouisiana, LLC4809Jefferson HwyJefferson, LA70121ATTh:ChiefExecutive Officer10.Nonwaiver:
Thefailureofeitherpartytoinsistuponorenforce,inanyinstance, strictperformance bytheotherofanyofthetermsofthisAgreement ortoexerciseanyrightshereinconferred shallnotbeconsidered asawaiverorrelinquishment toanyextentofitsrightstoassertorrelyuponanysuchtermsorrightsonanyfutureoccasion.
11.Amendments.
Nowaiver,alteration, amendment ormodification ofanyoftheprovisions ofthisAgreement shallbebindingunlessinwritingandsignedbyadulyauthorized representative ofbothparties.12.EntireAgreement.
ThisAgreement, whichisenteredintoinaccordance withtheauthority oftheSalesandPurchases Tariffconstitutes theentireagreement betweenthepartieswithrespecttothesubjectmatterhereofandsupersedes allpreviousandcollateral agreements orunderstandings withrespecttothesubjectmatterhereof.13.Severability.
Itisagreedthatifanyclauseorprovision ofthisAgreement isheldbythecourtstobeillegalorvoid,thevalidityoftheremaining portionsandprovisions oftheAgreement shallnotbeaffected, andtherightsandobligations ofthepartiesshallbeenforcedasiftheAgreement didnotcontainsuchillegalorvoidclausesorprovisions.
TITLE:Ptthr'EQENTERGYLOUISIANA, LLCBY:__________________
TITLE:________________
Signature pagetoPowerPurchaseAgreement byandbetweenELL(Seller)andETI(Buyer)for RiverBend70 ENTERGYTEXAS,INC.BY:____________
TITLE:___________
ENTERGSIAN,LLCBY:TITLE:fSiPtSignaturepage toPowerPurchaseAgreement byandbetweenELL(Seller)andETI(Buyer)for RiverBend70 ATTACHMENT ASALEOFCAPACITYANDENERGYBYENTERGYLOUISIANA, LLCTOENTERGYTEXAS,INC.ThisAttachment AisattachedtoandformsapartoftheAgreement datedSeptember 1,2016,betweenEntergyLouisiana, LLC("Seller")
andEntergyTexas,Inc.("Buyer")
pursuanttotheUnitPowerSalesandDesignated PowerPurchases Tariff.SELLER'SBUYER'SBUYERSCAPACITY*
ALLOCATED ALLOCATED CAPACITY*
PERCENTAGE DESIGNATED UNITSRiverBendStation 689292.8342.5%TOTAL689292.8342.5%*Expressed inmegawatts.
TotheextentSeller'sCapacityincreases ordecreases fromtimetotime,Buyer'sAllocated Capacityshalladjustcorrespondingly basedonBuyer'sAllocated Percentage ofSeller'sCapacity.
Attachment 4(Page1of1)ENTERGYLOUISIANA, LLCStatusReportofDecommissioning FundingForYearEndingDecember31,2016-I0CFR50.75(f)(1)
PlantName:Waterlord 3SteamElectricStationI.MinimumFinancial Assurance (MFA)Estimated per10CFR50.75(b)and(c)(2016$):2.ISFSIObligation asof12/31/163.Decommissioning FundTotalAsof12/31/16:
4.Annualamountsremaining tobecollected:
5.Assumptions used:RateofEscalation ofDecommissioning Costs:RateofEarningsonDecommissioning Funds:Authority foruseofRealEarningsOver2%:6.Contracts uponwhichlicenseeisrelyingForDecommissioning Funding:7.Modifications toMethodofFinancial Assurance sinceLastReport:8.MaterialChangestoTrustAgreements:
$484.2million1$7.24million2$427.9millionSeeAttachment 4-BSeeitembelow2%realrateofreturnper10CFR50.75(e)(1)(i)
N/ANoneNoneNone1SeeAttachment 4-A.2FromEntergy's ISFSIDecommissioning FundingPlansPursuantto 10CFR72.30,December17,2015(Accession No.ML15351A523),
escalated forinflation.
Attachment 4-A(Page1of1)ENTERGYLOUISIANA, LLCCalculation ofMinimumAmountForYearEndingDecember31,2016-10CFR50.75(f)(1)
EntergyLouisiana, LLC:100%ownership interestPlantLocation:
Taft,Louisiana ReactorType:Pressurized WaterReactor("PWR")PowerLevel:>3,400MWtPWRBaseYear1986$:$105,000,000 LaborRegion:SouthWasteBurialFacility:
GenericDisposalSiteIOCFR5O.75(c)(2)
Escalation FactorFormula:0.65(L)+0.13(E)+0.22(B)FactorL=Labor(South)2.501E=Energy(PWR)1.872B=WasteBurial-Vendor (PWR)12.471PWREscalation Factor:0.65(L)+0.13(E)+0.22(B)=
4.610981986PWRBaseYear$Escalated:
$105,000,000 Factor=$484,152,529 1BureauofLaborStatistics, SeriesReportID:ClU2Ol000000022Oi (4thQuarter2016)2BureauofLaborStatistics, SeriesReportID:wpu0543andwpu0573(December 2016)3NuclearRegulatory Commission:
NUREG-1307RevisionI6,Table2.1(2016)
Attachment 4-E(Page1of4)ScheduleofRemaining PrncipaIPaymentsintoWaterford 3Decommissioning Fund($Thousands)
YearLPSCCityofNewOrleansTotal2017$6,688$133$6,8212018$6,688$133$6,8212019$6,688$133$6,8212020$7,580$151$7,7312021$7,580$151$7,7312022$7,580$151$7,7312023$7,580$151$7,7312024$7,580$151$7,7312025$8,867$8,8672026$8,867$8,8672027$8,867$8,8672028$8,867$8,8672029$8,867$8,8672030$10,246$10,246Note:ApprovedinLPSCDocketNo.U-31237,CNOResolution R-95-1081 inDocketUD95-1,andCNOResolution R-14-494inDocketUD-13-01.Copiesofthoseorderswerepreviously providedinthelicensee's March27,2015decommissioning financial assurance filingasAttachments 4-C,4-D,and4-E,respectively, Accession No.ML15092A183, andareincorporated hereinbyreference.
Attachment 5MinimumFundingAssurance Calculation Worksheets (Page1ofI1)Plantname:YearofBiennial:
Termination ofOperation:
ArkansasNuclearOne,UnitIMonthDay123120Step1:EarningsCredit:TrustFundBalance:$466317983 Step2:_______________
ILx_________
0.652.50$450,023,926 SiteSpecific:
TotalEarnings:
$657,974,868 Accumulation:ValueofAnnuity perRealRateofyearReturnperYearsofAnnuity:
TotalAnnuity:$02%0$0TotalStep2$0TotalStep1+Step2$657,974,868 Step3:DecomPeriod:RealRateofDecomTotalEarnings:
ReturnperPeriod:TotalRealRateofReturn:TotalEarningsforDecom:$657,974,868 2%70.14869$48,915,716 1TotalEarningsforDecom(112)xTotalEarningsx[(1+RRR)"Decom period-1]Accumulation duringDecomTotalofSteps1-3:$706,890,584 TotalTotalEarnings+TotalEarningsforDecomExcess(Shortfall)
$256,866,658 toNRCminimum$(4,676,345)
LessISFSI$-ParentCoGuaranty$252,190,313TotalExcess Financial Assurance 5MWth1986$ECIPWR2568$97,598,400 126.2NRCMinimum:Licensee:
I%Owned:EntergyYear20162034BaseLx1.98I100.00%IAmountofNRCMinimumlSite Snecific:
AmountinTrustFundiPxFxExBx1.8831.8540.13'1.870.2212.471$450,023,926 I$466,317,983 IRealRateofYearsLeftReturnperinLicenseTotalRealRateofReturn:2%17.391.411001TotalEarnings=TrustFundbalancex(1+RRR)"Yearsleft inlicense Attachment 5MinimumFundingAssurance Calculation Worksheets (Page2ofI1)Plantname:YearofBiennial:
Termination ofOperation:
!!YY!iEdPWR3026[$101,628,800 126.2NRCMinimum:Step1:EarningsCredit:TwstFundBalance:$368,416,638 Step2:Month127ArkansasNuclearOne,Unit2Day3117ILx0.65'2.50$468,608,006 SiteSpecific:
Year20162038AmountofNRCMinimumlSite Specific:
mountinTruFund$468,608,006 I$368,416,638 TotalofSteps1-3:$678,279,877 BaseLx1.98Licensee:
EntergyI%Owned:I100.00%IPx1.883Fx1.8540.13"1.870.2212.471RealRateofYearsLeftReturnperinLicenseTotalRealRateofReturn:2%21.541.53211Accumulation:
ValueofAnnuity perRealRateofyearReturnperYearsofAnnuity:
TotalAnnuity:SeeAnnuitySheet 2%22$66,888,437 TotalStep2$66,888,437 TotalStep1+Step2$631,343,976 Step3:DecomPeriod:RealRateofDecomTotalEarnings:
ReturnperPehod:TotalRealRateofReturn:TotalEarningsforDecom:$631,343,976 2%70.14869$46,935,900 TotalEarnings:
$564,455,539 TotalEarningsTrustFund balancex(1&#xf7;RRR)'Years leftinlicenseTotaIEarningsforDecom (112)xTotalEarningsx
[(f+RRR)"Decomperiod-1]
1TotalTotal Earnings+TotalEarningsforDecomI-Accumulation duringDecomExcess(Shortfall)
$209,671,871to NRCminimum$(4,676,345)
LessISFSI$-ParentCocuaranty$204,995,526TotalExcess Financial Assurance Attachment 5MinimumFundingAssurance Calculation Worksheets (Page3ofI1)Plantname:
ANO-2Termination ofOperations:
2038RealTotalYearAnnuity:RateofAccumulation 2017$2,450,217 2.00%$3,713,712 TotalAccumulation Annuityx(1+RRR)AYears leftfrom2018$2,450,217 2.00%$3,640,894 Accum2019$2,450,217 2.00%$3,569,504 2020$2,450,217 200%$3,499,513 2021$2,450,217 200%$3,430,896 2022$2,450,217 2.00%$3,363,623 2023$2,450,217 2.00%$3,297,670 2024$2,450,217 2.00%$3,233,009 2025$2,450,217 2.00%$3,169,617 2026$2,450,217 2.00%$3,107,468 2027$2,450,217 2.00%$3,046,537 2028$2,450,217 2.00%$2,986,801 2029$2,450,217 2.00%$2,928,236 2030$2,450,217 2.00%$2,870,820 2031$2,450,217 2.00%$2,814,529 2032$2,450,217 2.00%$2,759,342 2033$2,450,217 2.00%$2,705,238 2034$2,450,217 2.00%$2,652,194 2035$2,450,217 2.00%$2,600,190 2036$2,450,217 2.00%$2,549,206 2037$2,450,217 2.00%$2,499,221 2038$2,450,217 2.00%$2,450,217 TotaI:$66,888,437 a8C:4-0'j-xci)C)0)xcC)0-%I.ii..iIi!I1Z13C'):&deg;*.uH'*:::'**:'CD2..I'!Li.!hII..*1.1iiUiIj!
<HH,'.IIIIID)dQII)CD;.DCflx0,-'-4.U)*1CDCDU)<-awU)Co-CD0i0-I-'--
Attachment 5MinimumFundingAssurance Calculation Worksheets (Page6ofII)Plantname:YearofBiennial:
Termination ofOperation:
Month1211GrandGulfNuclearStation(Cooperative Energy10%)Day31IYear20162044ILx_________
065'2.50SiteSpecific:
AmountinTrustFund$64,426,567 Fx1.8540.13'1.87Bx0.2213.132Step1:EarningsCredit:RealRateofYearsLeftTrustFundBalance:ReturnperinLicenseTotalRealRateofReturn:$64,426,567 2.91%27.832.22203Step2:Accumulation:ValueofAnnuity perRealRateof_______.Y.L ReturnperSeeAnnuitySheet2.91%ECI126.2yiIiBWR4408['$135,000,000 NRCMinimum:Licensee:
%Owned:Entergy10.00%BaseLx1.98$642,093,I 63AmountofNRCMinimumlSite Specific:
$64209316 Px1.883TotalEarnings:
-$143,157,840 TotalEarnings=TrustFundbalancex(1+RRR)'Years leftinlicenseYearsofAnnuity:
TotalAnnuity:8$0TotalStep2$0TotalStep1+Step2$143,757,840 Step3:DecomPeriod:RealRateofDecomTotalEarnings:
ReturnperPeriod:TotalRealRateofReturn:TotalEarningsforDecom:$143,157,840 2%70.14869$10,642,760 LAccumulation duringDecomTotalofSteps1-3:$153,800,600 1TotalEarningsforDecom=(112)xTotalEarningsx[(1+RRR)'Decom period-1]1TotalTotalEarnings+TotalEarningsforDecomExcess(Shortfall)
$89,597,284 toNRCminimum$(1,017,996)
LessISFSI$-ParentCoGuaranty$88,573,288 TotalExcessFinancial Assurance
-'::iUIIIg!.-,1<cj).f85L'!)U8U5s*gd!:<.H0)tnH.E0MlCc:Dt6U-o*et60E8N0;U)D'-.0_I2o).;U)U)U)...'&'-I..*1Iii1111IjJ Attachment 5MinimumFundingAssurance Calculation Worksheets (Page8ofII)Rar:FlyerrdSton(Fiated70&deg;4Temination demnoris:2025RaITdaILPSCPIUImArvitityFitedPcctmiafion Year%317$8,996,000
$1,123,000
$112,914%J18$8,6,OOO$1,1,COO$112,914%J19$8,6,OCO$1,1,COO$112,914ZBJ$10,1,OOO$1,1,OCO$112,9142Q1$1c195,000$1,1,OOO$112,914%I22$1c15,OOO$1,123,000$112,91423$1O,OOO$1,123,000
$112914Q4$1196,000$1,1,COO$112,914J25$11,3,OOO
$1,1,OOO$164,4$1O34,914 2OYo$11,991$33
$1O34,914 20Y0$11,756,TdaIPccimiafion ArvlLityx (1i-F"Years leftfrom$10,234,914 2OYo$11,,176Acuii$11,433,914 2O%$12,3,9$11,433,914 20%$12,376,436
$11,436,914 2OYo$12,136,761
$11,436,914 20%$11,,844$11,436,914 ZOYo$11,6,2$1Z963,42OYo$1Z93,4TdaI:$1O8,951,1&
AxuTtiafion DiiiigIcomnPerioda$1i,aoooox"$1i,,ooo$1i,,coo227$11,3,OOOJ'$11,3,COO$11,3,OOOJ28$11,6,OOOJJr$11,3,OOO$11,3,OOOa:T$11,3,OOO$0LJ'$11,3,OOO
$11,6,OOOaoo$13,513,000
$Jr$13,513,000
$13,513,000 ZX3I$D$DJr$0XJJFjB3OXJ$Jr%J64$JJJrTdaI:$&OOO Attachment 5MinimumFundingAssurance Calculation Worksheets (Page9ofII)Plantname:YearofBiennial:
Termination ofOperation:
Month128RiverBend(Non-Regulated 30%)Day3129Year20162025W!!1ECIBaseLxBWR3091'$131,819,OOO
'126.2198ILx0.65r2.50Px1.883Fx1.8540.131.870.2213.132 Step1:EarningsCredit:RealRateofYearsLeftTotalRealTrustFundBalance:ReturnperinLicenseRateof$361,306,356 2%8.661.18710Step2:TotalEarnings:
$428,907,163 TotalofSteps1-3:$460,793,337 TotalTotalEarnings+TotalEarningsforDecomNRCMinimum:$626,963,546 Licensee:
%Owned:AmountofNRCMinimumlSite Specific:
AmountinTrustFundEntergy30.00%$188,089,064
$361,306,356 SiteSpecific:
Accumulation:
ValueofAnnuity perRealRateofyearReturnperYearsofAnnuity:
TotalAnnuity:$02%0$0RealRateofYearsremaining afterTotalAnnuityReturnperannuityTotalStep2$02%8.661187215
$0TotalStep1+Step2$428,907,163 Step3:DecomPeriod:RealRateofDecomTotalRealTotalEarnings:
ReturnperPedod:RateofTotalEarningsforDecom:$428,907,163 2%70.14869$31,886,174 TotalEarnings=TrustFundbalancex(1+RRR)"Years leftinlicenseTotalEarningsforDecom=(1/2)xTotalEarningsx[(1+RRR)"Decom period-1]Excess(Shortfall)
$272,704,274 toNRCminimum$(2,170,984)
LessISFSI$-ParentCoGuaranty$270,533,289 TotalExcess Financial Assurance II._,ii>)IxF'-.-I-I0IQIx'-TxG)I0)I.cIII9I,+IIci)-II,U.NIU):..Q___I.LO'-cS?E-..U)I0CII_I:3U)FU)DI)CLLENI:L.[.IIN:(N[:>-.c,.I1g:___'5...'(o4Ji*L>-.:HI-Attachment 5MinimumFundingAssurance Calculation Worksheets (Page11ofII)Plantname:Waterford Generating Station,Unit3Termination ofOperations:
YearLPSCCNO2025RealTotalAnnuity:RateofAccumulatlo Accumulation DuringDecommPeriod2025$8,867,000
$0$8,867,000 2026$8,867,000
$0$8,867,000 2027$8,867,000
$0$8,867,000 2028$8,867,000
$0$8,867,000 2029$8,867,000
$0$8,867,000 2030$10,246,000
$0$10,246,000
$0$02017$6,688,000
$133,000$6,821,000 2.00%$7,991,889 2018$6,688,000
$133,000$6,821,000 2.00%$7,835,185 2019$6,688,000
$133,000$6,821,000 2.00%$7,681,554 2020$7,580,000
$151,000$7,731,000 2.00%$8,535,649 2021$7,580,000
$151,000$7,731,000 2.00%$8,368,283 2022$7,580,000
$151,000$7,731,000 2.00%$8,204,199 2023$7,580,000
$151,000$7,731,000 2.00%$8,043,332 2024$7,580,000
$151,000$7,731,000 2.00%$7,885,620 TotalAccumulation Annuityx(1+RRR)'Years leftfromAccumTotal:$64,545,711 20310Total:$54,581,000}}

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