Item 8.01 Other Events.
As discussed in "Management's Financial Discussion and Analysis - State and
Local Regulation - Filings with the PUCT" in its Quarterly Report on Form 10-Q
for the quarter ended March 31, 2009, Entergy Texas, Inc. ("ETI") made a
compliance filing with the Public Utility Commission of Texas ("PUCT") in
January 2008 describing how 2007 rough production cost equalization receipts
allocated to Entergy Gulf States, Inc. ("EGSI") under the Entergy System
Agreement were reallocated between Entergy Gulf States Louisiana, L.L.C.
("EGSL") and ETI for the period immediately preceding EGSI's jurisdictional
split effected December 31, 2007. A hearing was held at the end of July 2008,
and in October 2008 the administrative law judge ("ALJ") issued a proposal for
decision recommending an additional $18.6 million allocation to Texas retail
customers. The PUCT adopted the ALJ's proposal for decision in December 2008.
Because the PUCT allocation to Texas retail customers is inconsistent with the
Louisiana Public Service Commission ("LPSC") allocation to Louisiana retail
customers, the PUCT decision results in trapped costs between the Texas and
Louisiana jurisdictions with no mechanism for recovery. The PUCT denied ETI's
motion for rehearing and ETI commenced proceedings in both state and federal
district courts seeking to reverse the PUCT's decision. On May 12, 2009, certain
defendants, in their official capacities as Commissioners of the PUCT, filed a
motion to dismiss ETI's pending complaint before the U.S. District Court for the
Western District of Texas. ETI also filed with the Federal Energy Regulatory
Commission ("FERC") a proposed amendment to the Entergy System Agreement
bandwidth formula to specifically calculate the payments to EGSL and ETI of
EGSI's rough production cost equalization receipts for 2007. On May 8, 2009, the
FERC issued an order rejecting the proposed amendment, stating, among other
things, that the FERC does not have jurisdiction over the allocation of an
individual utility's receipts/payments among or between its retail jurisdictions
and that this was a matter for the courts to review in the pending appeals noted
above. ETI is reviewing the FERC's decision and is assessing its available
options. However, given the current FERC order, ETI expects to record the
effects of the PUCT's allocation of the additional $18.6 million to retail
customers in the second quarter of 2009. On an after tax basis, the charge to
earnings is expected to be approximately $13.0 million (inclusive of interest).