CNRO-2017-00010, Entergy Operations, Inc. - Decommissioning Funding Status Report

Entergy Operations, Inc. - Decommissioning Funding Status Report

ML17093A933
Person / Time
Site:	Grand Gulf, Arkansas Nuclear, River Bend, Waterford
Issue date:	03/31/2017
From:	Ford B Entergy Operations
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
CNRO-2017-00010
Download: ML17093A933 (38)

Text

Entergy Operations, Inc.

Entergy Bryan S. Ford Senior Manager, Fleet Regulatory Assurance CNRO-201 7-00010 March 31, 2017 U.S. Nucfear Regulatory Commission Attn: Document Control Desk I 1 555 Rockville Pike Rockville, MD 20852-2738

SUBJECT:

Decommissioning Funding Status Report Entergy Operations, Inc Arkansas Nuclear One, Units I & 2 River Bend Station Dockets 50-313 & 50-368 Docket 50-458 Grand Gulf Nuclear Station Waterlord 3 Steam Electric Station Docket 50-41 6 Docket 50-382

References:

1. NUREG-1307, Report on Waste Burial Charges, Revision 16, dated November 2016.

2. NRC Regulatory Issue Summary 2001-07, 10 CFR 50.75(f)(1) Reports on the Status of Decommissioning Funds (Due March 31 2001 ). ,

Dear Sir or Madam:

1 0 CFR 50.75(f)(1) requires each power reactor licensee to report to the NRC by March 31, I 999, and every two years thereafter, on the status of its decommissioning funding for each reactor, or share of a reactor, that it owns. On behalf of Entergy Arkansas, Inc. for Arkansas Nuclear One (ANO), System Entergy Resources, Inc. (SERI) and Cooperative Energy1 (formerly South Mississippi Electric Power Association (SMEPA)) for Grand Gulf Nuclear Station (GGNS),

Entergy Louisiana, LLC for for River Bend Station (RBS) and Waterford 3 Steam Electric Station (WF3), Entergy Operations, Inc. hereby submits the information requested for power reactors operated by Entergy Operations, Inc.

The estimated minimum decommissioning fund values were determined using the NRCs methodology in NUREG-1307 Rev 16.

1 March 29, 201 7, Entergy Operations, Inc. submitted a license amendment request to the NRC seeking administrative changes to the Grand Gulf license to reflect the new name Cooperative Energy.

NRC Accession No. ML17088A759.

CNRO-201 7-00010 Page 2 of 5 The 70 percent regulated interest of RBS contains funds accumulated for separate rate regulatory jurisdictions. There are not separate trust funds for the individual jurisdictions responsible for decommissioning of the 70 percent regulated share of RBS. Balances in the nuclear decommissioning trust for the 70 percent regulated share of RBS attributable to the separate jurisdictions are accounted for by the Trustee, the Bank of New York Mellon. The following information provides the balances in the 70 percent regulated share trust attributable to each of the relevant jurisdictions as of December 31 2016:

Louisiana $149,697,311 Texas $191,768,798 FERC $ 10,062,919 The trust fund amounts reported for each facility in the responses to item 3 represent the market value of decommissioning trust funds as of December 31 201 6 net of any material current income tax liability on realized gains, interest, dividends and other income of the trusts.

Cooperative Energy is a not-for-profit electric cooperative, and is exempt from federal income tax. Accordingly, the amounts reported as of December 31 201 6 of funds separately accumulated by Cooperative Energy for GGNS decommissioning were after-tax amounts. The trusts for the following plants had balances on their 2016 tax liabilities (in thousands), not reflected in the trust fund balances, as follows (does not include Cooperative Energy):

ANO $ 8 GGNS $ 0 RBS $ 68 WF3 $ 0 In accordance with guidance provided by the NRC Staff in April 2014 requests for additional information (Accession No. ML14120A273) that [fluture 10 CFR 50.75(f) reports should clearly delineate estimate reactor and ISFSI decommissioning costs, the information in Attachments 1-4 includes line item 2 identifying the ISFSI decommissioning obligation, escalated from the most recent 10 CFR 72.30 filing. This obligation is also accounted for in the Excess/Shortfall calculations for each plant in Attachment 5.

The information provided in Attachments 1-4 is based on NRC Regulatory Issue Summary 2001 -07. Consistent with your letter dated March 1 1 201 1 (Accession No. ML1 I 0280410),

we are providing with this submittal or incorporating by reference certain agreements providing for original (not resale) nuclear plant power sales (that may, from time to time, include decommissioning collections) between Entergy operating companies that invoke Federal Energy Regulatory Commission (FERC) tariffs. Considering these agreements and the applicable NRC regulations, Entergy respectfully asserts that these rate-making tariffs should not be viewed as contractual obligations as thatterm is used within 10 CFR 50.75(e)(1)(v).

These arrangements describe exchanges among regulated utilities that operate within the confines of a FERC-approved tariff, under the ratemaking jurisdiction of the FERC. As such, the various agreements are simply extensions of the FERC tariff and not the type of contractual obligations contemplated by 10 CFR 50.75(e)(1)(v), and Entergys decommissioning funding is still provided by the external sinking fund method in accordance with 10 CFR 50.75(e)(1)(ii). In an abundance of caution and in a spirit of cooperation, however, Entergy is providing or incorporating various tariff agreements for each affected plant.

CNRO-201 7-00010 Page 3 of 5 Additionally, Attachment 5 includes Minimum Funding Assurance calculation worksheets (not required for this filing) derived from LIC-205 Revision 4 for the plants, provided for the convenience of the reviewer.

The aforementioned worksheets, using the December 31 201 6 trust fund balances, indicate that all of the plants covered by this submittal met or exceeded the NRCs funding requirements.

This submittal contains no new commitments. Please address any comments or questions regarding this matterto me at 601-368-5516.

Sincerely, BSF/L]S cc: next page

CNRO-201 7-00010 Page 4 of 5 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)

USNRC Regional Administrator, Region IV USNRC Project Manager, ANO USNRC Project Manager, GGN USNRC Project Manager, RBS USNRC Project Manager, WF3 USNRC Resident Inspector, ANO USNRC Resident Inspector, GGN USNRC Resident Inspector, RBS USNRC Resident Inspector, WF3 Arkansas Department of Health Mississippi Department of Health Louisiana Department of Environmental Quality

CNRO-201 7-00010 Page 5 of 5 Attachments:

I . Entergy Arkansas, Inc. ANO 1 & 2 Status Reports 1-A Entergy Arkansas, Inc. Calculation of Minimum Amount 1-B Schedule of Remaining Principal Payments ANO-2

2. SERI & Cooperative Energy GGNS Status Report 2-A SERI & Cooperative Energy Calculation of Minimum Amount 2-B Schedule of Remaining Principal Payments GGNS

3. Entergy Louisiana, LLC RBS Status Report 70% Regulated 3-A Entergy Louisiana, LLC Calculation of Minimum Amount 3-B Schedule of Remaining Principal Payments RBS 3-C Entergy Louisiana, LLC RBS Status Report 30% Non-Regulated 3-D River Bend 70% Purchase Power Agreement

4. Entergy Louisiana, LLC Waterlord 3 Status Report 4-A Entergy Louisiana, LLC Calculation of Minimum Amount 4-B Schedule of Remaining Principal Payments Waterlord 3

5. Minimum Funding Assurance Calculation Worksheets

Attachment I (Page 1 of 2)

ENTERGY ARKANSAS, INC.

Status Report of Decommissioning Funding For Year Ending December 31 201 6 1 0 CFR 50.75(f)(1)

Plant Name: Arkansas Nuclear One Unit I (ANO 1)

I Minimum Financial Assurance (MFA)

Estimated per 10 CFR 50.75(b) and (c) (2016$): $450.0 million1

2. ISFSI Obligation as of 12/31/14 $4.68 million2

3. Decommissioning Trust Fund Total As of 12/31/14: $466.3 million

4. Annual amounts remaining to be collected:

5. Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections 2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

6. Contracts upon which licensee is relying For Decommissioning Funding: None

7. Modifications to Method of Financial Assurance since Last Report: None

8. Material Changes to Trust Agreements: None I

See Attachment 1-A 2

From Entergys ISFSI Decommissioning Funding Plans Pursuantto 10 CFR 72.30, December 17, 2015 (Accession No. ML15351A523), escalated for inflation.

3 Decommissioning funding has been suspended by the Arkansas Public Service Commission in Docket No. 87-166-TF. The NRC has granted license renewal to 5/2034.

Attachment 1 (Page 2 of 2)

ENTERGY ARKANSAS, INC.

Status Report of Decommissioning Funding For Year Ending December 31 201 6 I 0 CFR 50.75(f)(1)

Plant Name: Arkansas Nuclear One Unit 2 (ANO 2)

I . Minimum Financial Assurance (MFA)

Estimated perlOCFR5O.75(b) and (c) (2016$): $468.6 million1

2. ISFSI Obligation as of 12/31/16 $4.68 million2

3. Decommissioning Fund Total As of 12/31/16: $368.4 million

4. Annual amounts remaining to be collected: See Attachment 1-B3

5. Assumptions used in determining rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections:

2% annual real rate of return per 10 CFR 50.75(e)(1)(i)

6. Contracts upon which licensee is relying None For Decommissioning Funding:

7. Modifications to Method of Financial Assurance since Last Report: None

8. Material Changes to Trust Agreements: None 1

See Attachment 1-A 2

From Entergys ISFSl Decommissioning Funding Plans Pursuantto 10 CFR 72.30, December 17, 2015 (Accession No. ML15351A523), escalated for inflation.

3 Decommissioning funding has been allowed by the Arkansas Public Service Commission in Revised Attachment A to Rider NDCR in Docket No. 87-1 66-TF.

Attachment 1-A (Page 1 of 1)

ENTERGY ARKANSAS, INC.

Calculation of Minimum Amount For Year Ending December 31, 2016 10 CFR 50.75(f)(1)

Entergy Arkansas, Inc.: 100% ownership interest Plant Location: Russellville, Arkansas Reactor Type: Pressurized Water Reactor (PWR)

ANO Unit I Power Level: <3,400 MWt (2,568 MWt)

ANO Unit I PWR Base Year 1986$: $97,598,400 ANO Unit 2 Power Level: <3,400 MWt (3,026 MWt)

ANO Unit 2 PWR Base Year 1986$: $101,628,800 Labor Region: South Waste Burial Facility: Generic Disposal Site IOCFR5O.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

Factor L=Labor (South) 2.501 E=Energy (PWR) I .872 B=Waste Burial-Vendor (PWR) 12.471 PWR Escalation Factor:

0.65(L) +0.13(E) +0.22(B)= 4.61098 1986 PWR Base Year $ Escalated:

ANOI: $97,598,400 Factor= $450,023,926 ANO2: $101,628,800

• Factor= $468,608,006 1

Bureau of Labor Statistics, Series Report ID: CIU2010000000220i (4th Quarter 2016) 2 Bureau of Labor Statistics, Series Report ID: wpu0543 and wpu0573 (December 2016) 3 Nuclear Regulatory Commission: NUREG-1307 Revision 16, Table 2.1 (2016)

Attachment 1-B (Page 1 of 1)

Schedule of Remaining Principal Payments into ANO-2 Decommissioning Fund

($ Thousands)

ANO-2 Total 2017 $2,450 $2,450 2018 $2,450 $2,450 2019 $2,450 $2,450 2020 $2,450 $2,450 2021 $2,450 $2,450 2022 $2,450 $2,450 2023 $2,450 $2,450 2024 $2,450 $2,450 2025 $2,450 $2,450 2026 $2,450 $2,450 2027 $2,450 $2,450 2028 $2,450 $2,450 2029 $2,450 $2,450 2030 $2,450 $2,450 2031 $2,450 $2,450 2032 $2,450 $2,450 2033 $2,450 $2,450 2034 $2,450 $2,450 2035 $2,450 $2,450 2036 $2,450 $2,450 2037 $2,450 $2,450 2038 $2,450 $2,450 Note: Approved in Revised Attachment A to Rider NDCR in Docket No. 87-166-TF

Attachment 2 (Page 1 of 1)

SYSTEM ENERGY RESOURCES, INC. and SOUTH MISSISSIPPI ELECTRIC POWER ASSOCIATION Status Report of Decommissioning Funding For Year Ending December 31, 2016 10 CFR 5075(f)(1) -

Plant Name: Grand Gulf Station (Owned & leased 90% by System Energy Resources, Inc (SERI) and 10% by Cooperative Energy) 1 . Minimum Financial Assurance (MFA)

Estimated per 10 CFR 50.75(b) and (c) (2016$):

SERI (90% ownership share) $577.9 million1 Cooperative Energy (10% ownership share) $64.2 million

2. ISFSI Obligation as of 12/31/162 SERI $9.16 million Cooperative Energy $1.02 million

3. Decommissioning Fund Total as of 12/31/16:

SERI $780.5 million Cooperative Energy $64.4 million

4. Annual amounts remaining to be collected: See Attachment 2-B

5. Assumptions used:

Rate of Escalation of Decommissioning Costs:

SERI See item below Cooperative Energy 3.0%

Rate of Earnings on Decommissioning Funds:

SERI 2% real rate of return per 10 CFR 50.75(e)(1)(i)

Cooperative Energy Approx. 2.91%

Authority for use of Real Earnings Over 2%:

SERI N/A Cooperative Energy Cooperative Energy Board

6. Contracts upon which licensee is relying For Decommissioning Funding: See footnote4

7. Modifications to Method of Financial Assurance since Last Report: None

8. Material Changes to Trust Agreements:

SERI None Cooperative Energy None 1

See Attachment 2-A 2

From Entergys ISFSI Decommissioning Funding Plans Pursuantto 10 CFR 72.30, December 17, 2015 (Accession No. ML15351A523),

escalated for inflation.

3 Established by Cooperative Energy board resolution. A copy ofthat resolution was previously provided in the licensees March 27, 2015 decommissioning financial assurance filing as Attachment 2-C, Accession No. ML15092A183, and is incorporated herein by reference.

4 See the Unit Power Sales Agreement and the Availability Agreement, FERC tariffs, previously provided in the licensees March 27, 2015 decommissioning financial assurance filing as Attachment 2-D, Accession No. ML15092A183, incorporated herein by reference. It is the licensees position that these agreement are not 1 0 CFR §50.75(e)(1 )(v) contractual obligations, but rather cost of service tariffs which may appropriately be used to fund the external sinking fund in accordance with 1 0 CFR §50.75(e)(1 )(ii). Out of abundance of caution, the licensee identifies this information here.

Attachment 2-A (Page 1 of 1)

SYSTEM ENERGY RESOURCES, INC. and COOPERATIVE ENERGY Calculation of Minimum Amount For Year Ending December 31, 2016 10 CFR 50.75(f)(1)

System Energy Resources, Inc. : 90% ownership/leasehold interest Cooperative Energy: 10% ownership interest Plant Location: Port Gibson, Mississippi Reactor Type: Boiling Water Reactor (BWR)

Power Level: >3,400 MWt BWR Base Year 1986$: $135,000,000 Labor Region: South Waste Burial Facility: Generic Disposal Site IOCFR5O.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

Factor L=Labor (South) 2.501 E=Energy (BWR) 1.872 B=Waste Burial-Vendor (BWR) 13.132 BWR Escalation Factor:

065(L) +0. 1 3(E) +0.22(B)= 4.75625 1986 BWR Base Year $ Escalated:

$135,000,000 Factor= $642,093,163 System Energy interest (90%): $577,883,847 Cooperative Energy interest (10%): $ 64,209,316 Total $642,093,163 1

Bureau of Labor Statistics, Series Report ID: C1U2010000000220i (4th Quarter 2016) 2 Bureau of Labor Statistics, Series Report ID: wpu0543 and wpu0573 (December 2016) 3 Nuclear Regulatory Commission: NUREG-1 307 Revision I 6, Table 2.1 (2016)

Attachment 2-B (Page 1 of 1)

Schedule of Remaining Principal Payments into Grand Gulf Decommissioning Fund

($ Thousands)

SERI Share Cooperative Energy Share Total 2017 $24,550 $0 $24,550 2018 $24,550 $0 $24,550 2019 $24,550 $0 $24,550 2020 $24,550 $0 $24,550 2021 $29,878 $0 $29,878 2022 $17,429 $0 $17,429 2023 $0 Thereafter $0 $0 Thereafter Note: Approved in FERC Docket No. ER95-1 042-004. A copy of the order in that docket was previously provided in the licensees March 27, 2015 decommissioning financial assurance filing as Attachment 2-D, Accession No. MLI 5092A1 83, and is incorporated herein by reference.

Attachment 3 (Page 1 of 1)

ENTERGY LOUISIANA, LLC Status Report of Decommissioning Funding For Year Ending December 31 201 6 I 0 CFR 50.75(f)(1)

Plant Name: River Bend Station (70% Regulated Interest) 1 . Minimum Financial Assurance (MFA)

Estimated per 10 CFR 50.75(b) and (c) (2016$): $438.9 million1

2. ISFSI Obligation as of 12/31/16 $5.07 million2

3. Decommissioning Fund Total As of 12/31/16: $351.5 million

4. Annual amounts remaining to be collected: See Attachment 3-B

5. Assumptions used:

Rate of Escalation of Decommissioning Costs: See item below Rate of Earnings on Decommissioning Funds: 2% real rate of return per 10 CFR 50.75(e)(1)(i)

. 4 Authority for use of Real Earnings Over 2%:

N/A

6. Contracts upon which licensee is relying For Decommissioning Funding: See footnote

7. Modifications to Method of Financial Assurance since Last Report: None

8. Material Changes to Trust Agreements: None 1

See Attachment 3-A.

2 From Entergys ISFSI Decommissioning Funding Plans Pursuantto 10 CFR 72.30, December 17, 2015 (Accession No. ML15351A523), 70% of River Bend value, escalated for inflation.

3 See the agreement in attachment 3-D for a unit power purchase agreement under a FERC tariff for the Texas-jurisdictional share of the River Bend 70% share. The licensee believes this contract does not qualify as a contractual obligation, but rather is simply a cost of service recovery mechanism as defined in I 0 CFR §50.75(e)(1 )(ii)(A). Out of an abundance of caution, the licensee identifies this information here.

Attachment 3-A (Page 1 of I)

ENTERGY LOUISIANA, LLC Calculation of Minimum Amount For Year Ending December 31, 2016 10 CFR 50.75(f)(1)

Entergy Louisiana, LLC : Factors below used for all of ownership interests Plant Location: West Feliciana Parish, Louisiana Reactor Type: Boiling Water Reactor (BWR)

Power Level: <3,400 MWt (3,091 MWt)

BWR Base Year 1986$: $131,819,000 Labor Region: South Waste Burial Facility: Generic Disposal Site I OCFR5O.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

Factor L=Labor (South) 2.501 E=Energy (BWR) 1.872 BWaste Burial-Vendor (BWR) I 3. 1 32 BWR Escalation Factor:

0.65(L) +0.13(E) +0.22(B)= 4.75625 1986 BWR Base Year $ Escalated:

$131,819,000 Factor= $626,963,546 Rivet Bend 70% Regulated Interest: $438,874,482 Rivet Bend 30% Non-Regulated Intetest: $188,089064 Total $626,963,546 1

Bureau of Labor Statistics, Series Report ID: C1U2010000000220i (4th Quarter 2016) 2 Bureau of Labor Statistics, Series Report ID: wpu0543 and wpuO5Z3 (December 2016) 3 Nuclear Regulatory Commission: NUREG-1307 Revision 16, Table 2.1 (2016)

Attachment 3-B (Page 1 of 1)

Schedule of Remaining Principal Payments into River Bend Decommissioning Fund

($ Thousands)

Year LPSC PUCT FERC Total 2017 $ 8,996 $ 1,126 $ 113 $10,234 2018 $ 8,996 $ 1,126 $ 113 $10,234 2019 $ 8,996 $ 1,126 $ 113 $10,235 2020 $10,195 $ 1,126 $ 113 $11,434 2021 $10,195 $ 1,126 $ 113 $11,434 2022 $10,195 $ 1,126 $ 113 $11,434 2023 $10,195 $ 1,126 $ 113 $11,434 2024 $10,195 $ 1,126 $ 113 $11,434 2025 $11,693 $ 1,126 $ 165 $12,984 2026 $11,693 $0 $0 $11,693 2027 $11,693 $0 $0 $11,693 2028 $11,693 $0 $0 $11,693 2029 $11,693 $0 $0 $11,693 2030 $13,513 $0 $0 $13,513 Note: Approved in LPSC Docket No.U-31237; PUCT Order in Docket No. 39896; FERC Order in Docket Nos. ER86-558-002. Copies of those orders were previously provided in the licensees March 27, 2015 decommissioning financial assurance filing as Attachments 3-D, 3-E and 3-F, respectively, Accession No. MLI 5092A1 83, and are incorporated herein by reference.

Attachment 3-C (Page 1 of 1)

ENTERGY LOUISIANA, LLC Status Report of Decommissioning Funding For Year Ending December 31, 2016 10 CFR 50.75(f)(1)

Plant Name: River Bend Station (30% Non-Regulated Interest)

I . Minimum Financial Assurance (MFA)

Estimated per 10 CFR 5075(b) and (c) (2016$): $188.1 million1

2. ISFSI Obligation as of 12/31/16 $2.17 million2

3. Decommissioning Fund Total As of 12/31/16: $361.3 million

4. Annual amounts remaining to be collected: None

5. Assumptions used:

Rate of Escalation of Decommissioning Costs: See next item Rate of Earnings on Decommissioning Funds: 2% real rate of return per 10 CFR 50.75(e)(1)(i)

Authority for use of Real Earnings Over 2%: N/A

6. Contracts upon which licensee is relying For Decommissioning Funding: None3

7. Modifications to Method of Financial Assurance since Last Report: None

8. Material Changes to Trust Agreements: None 1

See Attachment 3-A.

2 From Entergys lSFSl Decommissioning Funding Plans Pursuantto 10 CFR 72.30, December 17, 2015 (Accession No. ML15351A523), 30% of River Bend value, escalated for inflation.

3 A portion of the River Bend 30% share is sold under contract to Entergy New Orleans, Inc., but since the 30% share is fully funded with a pre-paid decommissioning fund, the licensee does not rely on this contract for decommissioning.

Attachment 3-D River Bend 70% Purchase Power Agreement

AGREEMENT This Agreement is dated as of September 1, 20 1 6, between Entergy Texas, Inc.

(ElI or Buyer), and Entergy Louisiana, LLC (ELL or Seller).

WHEREAS, Seller has agreed to make a unit power sale from the designated units set forth on Attachment A (individually a Designated Unit and collectively Designated Units) to Buyer; and WHEREAS, the agreement among the former Entergy Louisiana, LLC (Entergy Louisiana), Entergy Mississippi, Inc., Entergy New Orleans, Inc., and Entergy Arkansas, Inc., (collectively the Companies), and Entergy Services, Inc. (ESI) was filed with FERC on April 30, 1982, and became effective on January 1 1983, and amended to incorporate Entergy Gulf States, Inc. (EGS) in 1993 and its successor, Entergy Gulf States Louisiana, L.L.C. (EGSL), and ETI in 2008 (hereinafter referred to as the System Agreement); and WHEREAS, on October 1 , 2015, EGSL and Entergy Louisiana completed a transaction in which EGSL and Entergy Louisiana combined substantially all of their respective assets and liabilities into a single successor public utility operating company now known as ELL; and WHEREAS, on October 30, 2015, ELL succeeded to the tariffs and rate schedules of EGSL and Entergy Louisiana; and WHEREAS, pursuant to a Settlement Agreement approved by FERC in Docket Nos.

ER14-75, et al., on December 29, 2015, the System Agreement will terminate effective August 31, 2016 at 11:59:59 PM Central Daylight Time; and WHEREAS, the parties herein previously executed this Agreement to provide for a unit power purchase by Buyer under Service Schedule MSS-4 from the Designated Units; and

WHEREAS, upon termination of the System Agreement, the Parties intend to apply the terms and conditions of the Unit Power Sales and Designated Power Purchases Tariff accepted by FERC in Docket No. ER13-1508 (Sales and Purchases Tariff), which is designed to replicate System Agreement Service Schedule MSS-4 as the umbrella tariff for this Agreement; THEREFORE, the parties agree as follows:

1 . Designated Units. The designated generating units for purposes of this unit power sale under the Sales and Purchases Tariff shall be those units set forth on Attachment A.

2. Unit Power Purchase. Seller agrees to sell and Buyer agrees to purchase that quantity of generating capacity and associated energy from the Designated Units equivalent to the percentage (the Allocated Percentage) of Sellers capacity in each such Designated Unit set forth on Attachment A.

3 . Pricing. The pricing of the capacity and energy to be sold and purchased pursuant to paragraph 2 above shall be as specified in the Sales and Purchases Tariff however, the input values for decommissioning, Generating Plant Accounts (DGUPTPLT), Accumulated Provision for Depreciation (DGUUR),

Accumulated Deferred Income Taxes (DGUADIT), and Depreciation Expense (DGUDE) will reflect the ratemaking decisions of the Public Utility Commission of Texas. In addition, the Operations and Maintenance expenses will be reduced by the 30% portion allocable to the unregulated portion of River Bend Station, which is not in retail rate base. This 30% portion of River Bend Station was formerly owned by Cajun Electric Power Cooperative before it was owned by EGSL and now ELL.

Should the trust funds set aside for Buyers share of the responsibility

for River Bend Station decommissioning be found to be insufficient to cover the aforesaid Buyers share of the cost for such decommissioning, Buyer will promptly pay to Seller such deficit. The Buyer will fully pay for the Buyers share of the decommissioning responsibility for River Bend notwithstanding the operational status of River Bend or any force majeure provisions. All proceeds from decommissioning collections under the Sales and Purchases Tariff pursuant to this Agreement will be deposited to the external sinking fund(s) that collect(s) Buyers decommissioning funding.

4. Energy Entitlement. Buyer is entitled to receive on an hourly basis the Allocated Percentage of the energy generated by each of the Designated Units.

5 . Term. The term of this Agreement shall be the operating life of the Designated Units, plus any time required to decommission the Designated Units.

6. Termination. Neither party shall have the right to terminate the unit power purchase and sale required by this Agreement without the express written consent of the other party.

7. Assignment. This Agreement is not assignable by Buyer without the consent of Seller, and Seller must consent to any transfer or assignment to any new or restructured entity resulting from any restructuring or business combination of Buyer, the effect of which would cause a successor to become a party hereto.

Any assignment approved by Seller shall be on terms as then agreed.

8. Condition Precedent. This contract shall be conditioned upon Buyer receiving all regulatory approvals required for this Agreement.

9. Notices. Unless specifically stated otherwise herein, any notice to be given hereunder shall be sent by Registered Mail, postage prepaid, to the party to be

notified at the address set forth below, and shall be deemed given when so mailed.

To ETI: Entergy Texas, Inc.

10055 Grogans Mill Road The Woodlands, TX 77380 ATTh: Chief Executive Officer To ELL: Entergy Louisiana, LLC 4809 Jefferson Hwy Jefferson, LA 70121 ATTh: Chief Executive Officer

10. Nonwaiver: The failure of either party to insist upon or enforce, in any instance, strict performance by the other of any of the terms of this Agreement or to exercise any rights herein conferred shall not be considered as a waiver or relinquishment to any extent of its rights to assert or rely upon any such terms or rights on any future occasion.

11 . Amendments. No waiver, alteration, amendment or modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of both parties.

12. Entire Agreement. This Agreement, which is entered into in accordance with the authority of the Sales and Purchases Tariff constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous and collateral agreements or understandings with respect to the subject matter hereof.

13. Severability. It is agreed that if any clause or provision of this Agreement is held by the courts to be illegal or void, the validity of the remaining portions and provisions of the Agreement shall not be affected, and the rights and obligations of the parties shall be enforced as if the Agreement did not contain such illegal or void clauses or provisions.

TITLE: P tth r EQ ENTERGY LOUISIANA, LLC BY:

TITLE:

Signature page to Power Purchase Agreement by and between ELL (Seller) and ETI (Buyer)for River Bend 70

ENTERGY TEXAS, INC.

BY:

TITLE:

ENTERG SIAN , LLC BY:

TITLE: fSi Pt Signaturepage to Power Purchase Agreement by and between ELL (Seller) and ETI (Buyer)for River Bend 70

ATTACHMENT A SALE OF CAPACITY AND ENERGY BY ENTERGY LOUISIANA, LLC TO ENTERGY TEXAS, INC.

This Attachment A is attached to and forms a part ofthe Agreement dated September 1, 2016, between Entergy Louisiana, LLC (Seller) and Entergy Texas, Inc. (Buyer) pursuant to the Unit Power Sales and Designated Power Purchases Tariff.

SELLERS BUYERS BUYERS CAPACITY* ALLOCATED ALLOCATED CAPACITY* PERCENTAGE DESIGNATED UNITS RiverBendStation 689 292.83 42.5%

TOTAL 689 292.83 42.5%

• Expressed in megawatts. To the extent Sellers Capacity increases or decreases from time to time, Buyers Allocated Capacity shall adjust correspondingly based on Buyers Allocated Percentage of Sellers Capacity.

Attachment 4 (Page 1 of 1)

ENTERGY LOUISIANA, LLC Status Report of Decommissioning Funding For Year Ending December 31 201 6 I 0 CFR 50.75(f)(1)

Plant Name: Waterlord 3 Steam Electric Station I . Minimum Financial Assurance (MFA)

Estimated per 10 CFR 50.75(b) and (c) (2016$): $484.2 million1

2. ISFSI Obligation as of 12/31/16 $7.24 million2

3. Decommissioning Fund Total As of 12/31/16: $427.9 million

4. Annual amounts remaining to be collected: See Attachment 4-B

5. Assumptions used:

Rate of Escalation of Decommissioning Costs: See item below Rate of Earnings on Decommissioning Funds: 2% real rate of return per 10 CFR 50.75(e)(1)(i)

Authority for use of Real Earnings Over 2%: N/A

6. Contracts upon which licensee is relying For Decommissioning Funding: None

7. Modifications to Method of Financial Assurance since Last Report: None

8. Material Changes to Trust Agreements: None 1

See Attachment 4-A.

2 From Entergys ISFSI Decommissioning Funding Plans Pursuantto 10 CFR 72.30, December 17, 2015 (Accession No. ML15351A523), escalated for inflation.

Attachment 4-A (Page 1 of 1)

ENTERGY LOUISIANA, LLC Calculation of Minimum Amount For Year Ending December 31 201 6 1 0 CFR 50.75(f)(1)

Entergy Louisiana, LLC: 1 00% ownership interest Plant Location: Taft, Louisiana Reactor Type: Pressurized Water Reactor (PWR)

Power Level: >3,400 MWt PWR Base Year 1986$: $105,000,000 Labor Region: South Waste Burial Facility: Generic Disposal Site I OCFR5O.75(c)(2) Escalation Factor Formula:

0.65(L) +0.13(E) +0.22(B)

Factor L=Labor (South) 2.501 E=Energy (PWR) 1.872 B=Waste Burial-Vendor (PWR) 12.471 PWR Escalation Factor:

0.65(L) +0.13(E) +0.22(B)= 4.61098 1986 PWR Base Year $ Escalated:

$105,000,000 Factor= $484,152,529 1

Bureau of Labor Statistics, Series Report ID: ClU2Ol000000022Oi (4th Quarter 2016) 2 Bureau of Labor Statistics, Series Report ID: wpu0543 and wpu0573 (December 2016) 3 Nuclear Regulatory Commission: NUREG-1 307 Revision I 6, Table 2.1 (2016)

Attachment 4-E (Page 1 of 4)

Schedule of Remaining PrncipaI Payments into Waterford 3 Decommissioning Fund

($ Thousands)

Year LPSC City of New Orleans Total 2017 $6,688 $133 $6,821 2018 $6,688 $133 $6,821 2019 $6,688 $133 $6,821 2020 $7,580 $151 $7,731 2021 $7,580 $151 $7,731 2022 $7,580 $151 $7,731 2023 $7,580 $151 $7,731 2024 $7,580 $151 $7,731 2025 $8,867 $8,867 2026 $8,867 $8,867 2027 $8,867 $8,867 2028 $8,867 $8,867 2029 $8,867 $8,867 2030 $10,246 $10,246 Note: Approved in LPSC Docket No. U-31237, CNO Resolution R-95-1081 in Docket UD 95-1 and CNO Resolution R-1 4-494 in Docket UD-1 3-01 Copies of those orders were previously provided in the licensees March 27, 2015 decommissioning financial assurance filing as Attachments 4-C, 4-D, and 4-E, respectively, Accession No. ML15092A183, and are incorporated herein by reference.

Attachment 5 Minimum Funding Assurance Calculation Worksheets (Page 1 of I 1)

Plant name: Arkansas Nuclear One, Unit I Month Day Year Year of Biennial: 12 31 2016 Termination of Operation: 5 20 2034 MWth 1986$ ECI Base Lx Lx Px Fx Ex Bx I

PWR 2568 126.2 1.98 0.65 2.50 1.883 1.854 0.13 1.87 0.22 12.471

$97,598,400 NRC Minimum: $450,023,926 Site Specific:

Licensee: I %Owned: Amount of NRC MinimumlSite Snecific: Amount in Trust Fundi Entergy I 100.00% I $450,023,926 I $466,317,983 I Step 1:

Earnings Credit:

Real Rate of Years Left Trust Fund Balance: Return per in License Total Real Rate of Return: Total Earnings:

$466317983 2% 17.39 1.41100 $657,974,868 = Trust Fund balance x (1+RRR)Years left in license 1 Total Earnings Step 2:

Accum ulation:

Value ofAnnuity per Real Rate of year Return per Years ofAnnuity: Total Annuity:

$0 2% 0 $0 Total Step 2

$0 Total Step 1 + Step 2

$657,974,868 Step 3:

Decom Period:

Real Rate of Decom Total Earnings: Return per Period: Total Real Rate of Return: Total Earnings for Decom:

2% 7 0.14869 $48,915,716 Earnings for Decom (112) x Total Earnings x [(1+RRR)Decom period - 1]

$657,974,868 1 Total Accumulation during Decom Total ofSteps 1 -3:

$706,890,584 Total Total Earnings + Total Earnings for Decom Excess (Shortfall) $ 256,866,658 to NRC minimum

$ (4,676,345) Less ISFSI

$ - Parent Co Guaranty

$ 252,190,313 Total Excess Financial Assurance

Attachment 5 Minimum Funding Assurance Calculation Worksheets (Page 2 of I 1)

Plant name: Arkansas Nuclear One, Unit 2 Month Day Year Year of Biennial: 12 31 2016 Termination of Operation: 7 17 2038

!!YY!i Ed Base Lx Lx Px Fx PWR 3026 [$101,628,800 126.2 1.98 0.65 I

2.50 1.883 1.854 0.13 1.87 0.22 12.471 NRC Minimum: $468,608,006 Site Specific:

Licensee: I %Owned: Amount of NRC MinimumlSite Specific: mount in Tru Fund Entergy I 100.00% I $468,608,006 I $368,416,638 Step 1:

Earnings Credit:

Real Rate of Years Left Twst Fund Balance: Return per in License Total Real Rate of Return: Total Earnings:

$368,416,638 2% 21.54 1.53211 $564,455,539 Total Earnings Trust Fund balance x (1÷RRR)Years left in license Step 2:

Accumulation:

Value ofAnnuity per Real Rate of year Return per Years ofAnnuity: Total Annuity:

SeeAnnuitySheet 2% 22 $66,888,437 Total Step 2

$66,888,437 Total Step 1 + Step 2

$631,343,976 Step 3:

Decom Period:

Real Rate of Decom Total Earnings: Return per Pehod: Total Real Rate of Return: Total Earnings for Decom:

$631,343,976 2% 7 0.14869 $46,935,900 TotaI EarningsforDecom (112)x Total Earningsx [(f+RRR)Decom period -1]

Accumulation during Decom -

Total of Steps 1 3:

$678,279,877 Total Earnings + Total Earnings for Decom I- 1 Total Excess (Shortfall) $ 209,671,871 to NRC minimum

$ (4,676,345) Less ISFSI

$ - Parent Co cuaranty

$ 204,995,526 Total Excess Financial Assurance

Attachment 5 Minimum Funding Assurance Calculation Worksheets (Page 3 of I 1)

Plantname: ANO-2 Termination ofOperations: 2038 Real Total Year Annuity: Rate of Accumulation 2017 $2,450,217 2.00% $3,713,712 Total Accumulation Annuity x (1+RRR)AYears left from 2018 $2,450,217 2.00% $3,640,894 Accum 2019 $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 Tota I : $66,888,437

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Attachment 5 Minimum Funding Assurance Calculation Worksheets (Page 6 of I I)

Plant name: Grand Gulf Nuclear Station (Cooperative Energy 10%)

Month Day Year Year of Biennial: 12 31 2016 Termination of Operation: 11 I 2044 ECI Base Lx Lx Px Fx Bx I

yiIi BWR 4408 [$135,000,000 126.2 1.98 065 2.50 1.883 1.854 0.13 1.87 0.22 13.132 NRC Minimum: $642,093,I 63 Site Specific:

Licensee: %Owned: Amount of NRC MinimumlSite Specific: Amount in Trust Fund Entergy 10.00% $64209316 $64,426,567 Step 1:

Earnings Credit:

Real Rate of Years Left Trust Fund Balance: Return per in License Total Real Rate of Return: Total Earnings:

$64,426,567 2.91% 27.83 2.22203 $143,157,840 Total Earnings = Trust Fund balance x (1+RRR)Years left in license Step 2:

Accum ulation:

Value ofAnnuity per Real Rate of Return per Years ofAnnuity: Total Annuity:

See Annuity Sheet 2.91% 8 $0 Total Step 2

$0 Total Step 1 + Step 2

$143,757,840 Step 3:

Decom Period:

Real Rate of Decom Total Earnings: Return per Period: Total Real Rate of Return: Total Earnings for Decom:

$143,157,840 2% 7 0.14869 $10,642,760 = (112) x Total Earnings x [(1+RRR)Decom period - 1]

1 Total Earnings for Decom L Accumulation during Decom Total ofSteps 1 -3:

$153,800,600 Total Earnings + Total Earnings for Decom 1 Total Excess (Shortfall) $ 89,597,284 to NRC minimum

$ (1,017,996) Less ISFSI

$ - Parent Co Guaranty

$ 88,573,288 Total Excess Financial Assurance

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Attachment 5 Minimum Funding Assurance Calculation Worksheets (Page 8 of I I)

Ra r: Flyer rd Ston (Fiated 70°4 Temination d emnoris: 2025 RaI TdaI Year LPSC PIUI m Arvitity Fite d Pcctmiafion

%317 $8,996,000 $1,123,000 $112,914 $1O34,914 2OYo $11,991$33

%J18 $8,6,OOO $1,1,COO $112,914 $1O34,914 20Y0 $1 1,756, TdaI Pccimiafion ArvlLityx (1i-FYears left from

%J19 $8,6,OCO $1,1,COO $112,914 $10,234,914 2OYo $11,,176 Acuii ZBJ $10, 1,OOO $1, 1,OCO $112,914 $1 1,433,914 2O% $12,3,9 2Q1 $1c 195,000 $1, 1,OOO $112,914 $11,433,914 20% $12,376,436

%I22 $1c 15,OOO $1, 123,000 $112,914 $11,436,914 2OYo $12,136,761 23 $1O,OOO $1,123,000 $112914 $11,436,914 20% $11,,844 Q4 $1 196,000 $1, 1,COO $112,914 $11,436,914 ZOYo $11,6,2 J25 $11,3,OOO $1,1,OOO $164,4 $1Z963,4 2OYo $1Z93,4 TdaI: $1O8,951,1&

AxuTtiafion Diiiig Icomn Period a $1 i,aooo o x $1 i,,ooo $1 i,,coo 227 $1 1,3,OOO J $1 1,3,COO $1 1,3,OOO r

J28 $1 1,6,OOO J J $1 1,3,OOO $1 1,3,OOO a:T $1 1,3,OOO $0 LJ $11,3,OOO $1 1,6,OOO r $13,513,000 aoo $13,513,000 $J $13,513,000 r

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Attachment 5 Minimum Funding Assurance Calculation Worksheets (Page 9 of I I)

Plant name: River Bend (Non-Regulated 30%)

Month Day Year Year of Biennial: 12 31 2016 Termination of Operation: 8 29 2025 W!!1 ECI BaseLx Lx Px Fx BWR 3091 $131,819,OOO 126.2 198 0.65 I 2.50 1.883 1.854 0.13 1.87 0.22 13.132 r

NRC Minimum: $626,963,546 Site Specific:

Licensee:  % Owned: Amount of NRC MinimumlSite Specific: Amount in Trust Fund Entergy 30.00% $1 88,089,064 $361,306,356 Step 1:

Earnings Credit:

Real Rate of Years Left Total Real Trust Fund Balance: Return per in License Rate of Total Earnings:

$361,306,356 2% 8.66 1.18710 $428,907,163 Total Earnings = Trust Fund balance x (1+RRR)Years left in license Step 2:

Accumulation:

Value ofAnnuity per Real Rate of year Return per Years ofAnnuity: Total Annuity:

$0 2% 0 $0 Real Rate of Years remaining after Total Annuity Return per annuity Total Step 2

$0 2% 8.661187215 $0 Total Step 1 + Step 2

$428,907,163 Step 3:

Decom Period:

Real Rate of Decom Total Real Total Earnings: Return per Pedod: Rate of Total Earnings for Decom:

$428,907,163 2% 7 0.14869 $31,886,174 Total Earnings for Decom = (1/2) x Total Earnings x [(1+RRR)Decom period - 1]

Total of Steps 1 3:

$460,793,337 Total Total Earnings + Total Earnings for Decom Excess (Shortfall) $ 272,704,274 to NRC minimum

$ (2,170,984) Less ISFSI

$ - Parent Co Guaranty

$ 270,533,289 TotalExcess Financial Assurance

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Attachment 5 Minimum Funding Assurance Calculation Worksheets (Page 1 1 of I I)

Plant name: Waterford Generating Station, Unit 3 Termination of Operations: 2025 Real Total Year LPSC CNO Annuity: Rate of Accumulatlo 2017 $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 Total Accumulation Annuity x (1+RRR)Years left from 2019 $6,688,000 $133,000 $6,821,000 2.00% $7,681,554 Accum 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 Total: $64,545,711 Accumulation During Decomm Period 2025 $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 2031 0 $0 $0 Total: $54,581 ,000