Control Number : 39896
Item Number: 266
Addendum StartPage : 0
SOAH Docket No. 473-12-2979
PUCT Docket No. 39896
APPLICATION OF ENTERGY
§
TEXAS, INC. FOR AUTHORITY TO
§
CHANGE RATES, RECONCILE FUEL
COSTS, AND OBTAIN DEFERRED
§
§
ACCOUNTING TREATMENT
§
BEFORE THE STATE OFFICE c'r^`
OF
C, ^ ..
•o
ADMINISTRATIVE HEARING'^^
CITIES' EIGHTEENTH REQUEST FOR INFORMATION
Pursuant to §22.144 of the Commission's Procedural Rules, the Cities of Bridge City,
Groves, Orange, Pine Forest, and West Orange, Texas ("Cities"), request that Entergy Texas,
Inc. ("ETI" or "Company"), by and through its attorneys of record, provide all information
requested on the attached Exhibit "A" within twenty (20) calendar days of receipt thereof
pursuant to P.U.C. Proc. R. 22.144(c)(1).
Pursuant to P.U.C. Proc. R. 22.144(c)(2), Cities further request that answers to the
requests for information be made under oath.
Each answer should identify the person
responsible for preparing that answer (other than the purely clerical aspects of its preparation)
and the name of the witness in this proceeding who will sponsor the answer and who can vouch
for its accuracy. In producing documents pursuant to this request for information, please indicate
the specific request(s) to which the document is being produced. These requests are continuing
in nature, and should there be a change in circumstances, which would modify or change an
answer supplied by you, such changed answer should be submitted immediately as a supplement
to your original answer pursuant to P.U.C. Proc. R. 22.144(i). Please answer each request and
sub-request in the order in which they are listed and in sufficient detail to provide a complete and
accurate answer to the request. Cities further request that each item of information be made
available as it is completed, rather than upon compilation of all information requested.
All information responsive to the requests on the attached Exhibit "A" should be sent to
the following via overnight courier, on a piecemeal basis as individual items become available:
Daniel J. Lawton
701 Brazos, Suite 500
Austin, Texas 78701
(512) 322-0019
(512) 716-8917 - fax
Page 1
JUY
DEFINITIONS AND INSTRUCTIONS
A.
"ETI," "the Company" or "you" refers to Entergy Texas, Inc., and any person
acting or purporting to act on their behalf, including without limitation, attorneys, agents,
advisors, investigators, representatives, employees or other persons.
B.
The terms "document" or "documents" are used in their broadest sense to include,
by way of illustration and not limitation, all written or graphic matter of every kind and
description whether printed, produced or reproduced by any process whether visually,
magnetically, mechanically, electronically or by hand, whether final or draft, original or
reproduction, whether or not claimed to be privileged or otherwise excludable from discovery,
and whether or not in your actual or constructive possession, custody, or control. The terms
include writings, correspondence, telegrams, memoranda, studies, reports, surveys, statistical
compilations, notes, calendars, tapes, computer disks, data on computer drives, e-mail, cards,
recordings, contracts, agreements, invoices, licenses, diaries, journals, accounts, pamphlets,
books, ledgers, publications, microfilm, microfiche and any other data compilations from which
information can be obtained and translated, but you if necessary, into reasonably useable form.
"Document" or "documents" shall also include every copy of a document where the copy
contains any commentary or notation of any kind that does not appear on the original or any
other copy.
C.
Pursuant to Rule 196.4 of the Texas Rules of Civil Procedure, Cities specifically
request that any electronic or magnetic data (which is included in the definition of "document")
that is responsive to a request herein be produced on CD-Rom in a format that is compatible with
Microsoft and/or Word Perfect and be produced with your response to these requests.
D.
The terms "and" and "or" shall be construed both disjunctively and conjunctively
as necessary to make the request inclusive rather than exclusive.
E.
"Each" shall be construed to include the word "every" and "every" shall be
construed to include the word "each."
« any. „
F.
"Any" shall be construed to include "all" and "all" shall be construed to include
G.
The term "concerning," or one of its inflections, includes the following meanings:
relating to; referring to; pertaining to; regarding; discussing; mentioning; containing; reflecting;
evidencing; describing; showing; identifying; providing; disproving; consisting of, supporting;
contradicting; in any way legal, logically or factually connected with the matter to which the
term refers; or having a tendency to prove or disprove the matter to which the term refers.
H.
The term "including," or one of its inflections, means and refers to "including but
not limited to."
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I.
Words used in the plural shall also be taken to mean and include the singular.
Words used in the singular shall also be taken to mean and include the plural.
J.
The present tense shall be construed to include the past tense, and the past tense
shall be construed to include the present tense.
K.
If any document is withheld under any claim of privilege, please furnish a list
identifying each document for which a privilege is claimed, together with the following
information: date, sender, recipients or copies, subject matter of the document, and the basis
upon which such privilege is claimed.
L.
Pursuant to P.U.C. Proc. R. 22.144(g)(4), if the response to any request is
voluminous, please provide a detailed index of the voluminous material.
M.
If the information requested is included in previously furnished exhibits,
workpapers, responses to other discovery inquiries or otherwise, in hard copy or electronic
format, please furnish specific references thereto, including Bates Stamp page citations and
detailed cross-references.
Respectfully submitted,
LAWTON LAW FIRM, P.C.
Nlo
Daniel J. La
n
0
1082
Stephen Ma'
2 41374
Molly L. Mayhall
24048265
701 Congress Ave., Suite 500
Austin, Texas 78701
(512) 322-0019
(512) 716-8917 Fax
ATTORNEY FOR CITIES
CERTIFICATE OF SERVICE
I hereby certify that a copy of this document was served on all parties of record in this
proceeding on this I 't day of February, 2012, by First Class, U. S. Mail, hand delivery, facsimile,
or in accordance with SOAH Order No. 1 from this proceeding.
Molly L. Ma all
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ATTACHMENT A
SOAH Docket No. 473-12-2979
PUCT Docket No. 39896
APPLICATION OF ENTERGY
TEXAS, INC. FOR AUTHORITY TO
§
§
CHANGE RATES, RECONCILE FUEL §
COSTS, AND OBTAIN DEFERRED
§
ACCOUNTING TREATMENT
§
BEFORE THE STATE OFFICE
OF
ADMINISTRATIVE HEARINGS
CITIES' EIGHTEENTH REQUEST FOR INFORMATION
18-1.
With respect to Mr. Gardner's testimony regarding benefit plans at pages 33 through 42,
please provide the following additional information:
a. To the extent any part is not provided in highly sensitive Exhibit KGG-5, please
provide a copy of the 2011 Towers Watson BenVal Report that compares Entergy
Companies with a peer group of 20 utilities and a peer group of Fortune 500
companies.
b. Please provide a list of the Fortune 500 companies used in the report and the
comparative revenue levels of each company of the peer group of 20 utilities and
the Fortune 500 companies along with the revenue level of Entergy.
c. Please provide the comparative total asset of each the 20 utilities and the Fortune
500 companies used in the report along with the total asset level of Entergy.
d. Please provide the annual cost of the employee benefit programs discussed in
Section C of Mr. Gardner's testimony in the following formats:
i. Total employee benefit costs at Entergy Companies for the test year.
ii. Total direct employee benefits costs incurred at ETI for the test year.
iii. Total costs assigned or allocated to ETI for the test year.
iv. Total direct and allocated employee benefit costs at ETI in the test year
(sum of ii and iii).
v. Total direct and allocated employee benefit costs in the test year operating
expense.
vi. Total direct and allocated employee benefit costs included in operating
expense for ratemaking purposes in this case (i.e., included in cost of
service).
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vii. Total direct and allocated employee benefit costs included in operating
expense for ratemaking purposes in this case (i.e., included in cost of
service) for each program separately including (1) medical and dental
plans, (2) long term disability plans, (3) life insurance plans, (4) retirement
benefit plans, and (5) executive retirement plans (with restoration and
supplemental plan costs shown separately).
18-2.
Reference Gardner page 38, lines 1-7. With respect to the percentage of peer group
utility companies that offer defined benefit retirement plans, please provide (1) the
percentage of peer group Fortune 500 companies that offer defined benefit retirement
plans and ( 2) the general percentage, if known by Towers Watson, of all Fortune 500
companies that offer defined benefit retirement plans.
18-3.
With respect to Table 6 at page 42 of Mr. Gardner's testimony, please provide the
following additional information:
a. Please provide the total dollar value of the Entergy Companies Benefit Plans used
in this comparison. In effect, the total annual cost of these plans to the Entergy
Companies.
b. Please provide the total dollar value of the Entergy Companies Benefit Plans used
in this comparison that (1) were incurred directly at ETI and (2) were allocated or
assigned to ETI from other Entergy companies. In effect, the total annual cost of
these benefit plans to ETI.
c. Please provide the total dollar value of the Entergy Companies Benefit Plans used
in this comparison that were (1) incurred directly at ETI and (2) were allocated or
assigned to ETI from other Entergy companies during the test year. In effect, the
total annual test year cost of these benefit plans to ETI.
d. Please provide the total dollar value of the Entergy Companies Benefit Plans used
in this comparison that were (1) incurred directly at ETI and (2) were allocated or
assigned to ETI from other Entergy companies that were included in operating
expense for ratemaking purposes. In effect, the total costs of these plans included
in ETI's cost of service.
e. For each separate item in Table 6, please provide the amount of cost included in
ETI's pro forma cost of service in this case. (In effect, this would be the amount
in question 3.d. allocated to the separate items included in the Table 6).
f.
For the Fortune 500 Company comparison, please provide the dollar value on an
annual basis associated with the percentages above and below market for each
item separately. For example, for the "Retirement and Savings Plans Combined"
please show (1) the Entergy Companies actual annual costs, (2) what Entergy
Companies annual costs would be at market value (i.e., at 100% of the Fortune
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500 peer group of companies) and (3) the difference in these two numbers. The
result should be the dollar value, on an annual basis, of the 40% above market
cost of the "Retirement and Savings Plan Combined" (with market here being the
Fortune 500 peer group of companies).
g. Please provide the dollar value on an annual basis of the 14% above market for
total benefit plan costs for the Entergy Companies, when compared to the Fortune
500 peer group.
18-4.
With respect to Relocation Costs, please provide the following information:
a. Please provide the total amount of relocation costs incurred during the test year.
b. Please provide the total amount of relocation costs in the test year included in
operating expense.
c. Please provide the amount of relocation costs included in pro forma operating
expense for ratemaking purposes (i.e. cost of service) in this case.
d. Please provide the amount of relocation costs included in operating expense in
2008, 2009, 2010 and 2011.
18-5.
Please reference page 46, lines 13-14 of Mr. Gardner's testimony and provide the
following information:
a. Please provide the dollar amount charge to ETI during the test year for (1) longterm incentives, (2) pensions, (3) OPEBS, and (4) executive retirement benefit
programs.
b. Please provide the amount included in pro forma cost of service for (1) long-term
incentives, (2) pensions, (3) OPEBS, and (4) executive retirement benefit
programs.
18-6.
Please provide the amount of annual incentive payments included in cost of service
associated with "Customer Satisfaction" and/or "Customer Service" goals.
18-7.
With respect to the Entergy Recognition Program (Gardner at page 19), please provide
the following information:
a. Please provide the total amount of recognition costs incurred during the test year.
b. Please provide the total amount of recognition costs in the test year included in
operating expense.
c. Please provide the amount of recognition costs included in pro forma operating
expense for ratemaking purposes (i.e. cost of service) in this case.
d. Please provide the amount of recognition costs included in operating expense in
2008, 2009, 2010 and 2011.
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18-8.
For Table 5 at page 26 of Mr. Gardner's testimony, please provide the following
information:
a. What amount of the $334,707,901 is included in pro forma cost of service in this
case? Of the amount included in cost of service, what was the amount that was
incurred at ETI and what was the amount that was allocated to ETI from ESI?
b. Please provide a Table 5 comparison of the two major components of total
compensation, base pay and incentive pay, broken out and shown separately.
c. Please describe how the "Market Median" was determined, including what
companies were used for a peer group, how they were selected and the criteria
that was used for their selection.
d. Please provide a Table 5 "base pay" comparison to the Towers Watson Fortune
500 peer group.
e. Please provide a Table 5 "incentive pay" comparison to the Towers Watson
Fortune 500 peer group.
f.
18-9.
Please provide the underlying data for Table 5 showing a list of the jobs compared
and the Entergy pay level for each job and the market median pay level for each
job.
With respect to total compensation and benefits, please provide the following
information:
a. Please show the total costs incurred in the test year for (1) base pay, (2) incentive
pay, (3) benefit plans, and (4) other labor related costs. For each category, please
show the amounts incurred at ETI directly and the amounts allocated or assigned
to ETI from ESI or other affiliates separately.
b. Please show the total costs included in the test year operating expense for (1) base
pay, (2) incentive pay, (3) benefit plans, and (4) other labor related costs. For
each category, please show the amounts incurred at ETI directly and the amounts
allocated or assigned to ETI from ESI or other affiliates separately.
c. Please show the total costs included in pro forma cost of service for (1) base pay,
(2) incentive pay, (3) benefit plans, and (4) other labor related costs. For each
category, please show the amounts incurred at ETI directly and the amounts
allocated or assigned to ETI from ESI or other affiliates separately.
18-10. For each position at ETI making more than $250,000 per year in base pay, please provide
the following information:
a. A job description of the position (do not name the employee).
b. The total amount of base pay paid during the test year.
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c. The total amount of base pay expensed during the test year.
d. The total amount of base pay included in cost of service.
18-11. For each position at ESI making more than $250,000 per year in base pay, please provide
the following information:
a. A job description of the position (do not name the employee).
b. The total amount of base pay paid during the test year.
c. The total amount of base pay allocated to ETI during the test year.
d. The total amount of base pay expensed at ETI during the test year.
e. The total amount of base pay included in cost of service in this case.
18-12. (Mcllvoy) Refer to page 28, lines 10-14. Please provide the specific transportation rates
charged under each interstate pipeline contract during the reconciliation period for the gas
fired generating units owned and operated by ETI and EGSL. If the rates differ by
generating unit or by month, provide the rates by unit and by month. State if the rate is
the maximum tariff rate or is a discounted rate.
18-13. (Mcllvoy) Refer to page 28, lines 10-14. Please provide the specific transportation rates
charged under each intrastate pipeline contract during the reconciliation period for the gas
fired generating units owned and operated by ETI and EGSL. If the rates differ by
generating unit or by month, provide the rates by unit and by month.
18-14. Refer to the Company's response to Cities 7-81. Please provide the amount of hourly
swing allowed under the TETCO firm transportation and operational balancing
agreements. Identify the contract and provision permitting such swing capability.
18-15. (Mcllvoy) Refer to page 32, line 16 - page 33, line 14. Besides ETI, does any other
Entergy operating company rely on natural gas storage to provide supply reliability and
swing flexibility for its gas-fired units? If so, please:
a. Identify the operating company and units connected to gas storage
b. Explain whether the storage facility is owned by the operating company or used
under contract with a third party;
c. If owned, provide the rate base costs (gross plant and accumulated depreciation),
depreciation and associated tax expense, and variable operating expense of the
facility, or if contracted, provide any fixed and variable costs paid under the
contract; and
d. Provide each contract effective in 2011 or 2012 for gas supply from leased gas
storage facilities or backed by gas storage.
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18-16. (Mcllvoy) Refer to page 32, line 16 - page 33, line 14. For Entergy operating companies
that do not rely on natural gas storage to provide supply reliability and swing flexibility
for its gas-fired units, please describe how each of these other operating companies
obtains equivalent supply reliability and swing flexibility.
18-17. Please explain how supply reliability and swing flexibility are obtained for the Louisiana
Station, Nelson 3&4, and Willow Glen units included in ETI's MSS-4 expenses. In
addition:
a. Identify the amount and cost of swing service available at each unit;
b. Identify the contracts and provide the contract terms supporting the swing service;
c. Explain how the amount of swing service at each unit was determined; and
d. Identify each contract by provider and service required for reliability purposes
and provide the relevant terms of the contract required for reliability purposes.
18-18. Provide each gas contract (whether for gas, gas transportation, balancing, call options,
etc.) for the Willow Glen generating station. Please provide information in sufficient
detail to determine quantities acquired and rates charged.
18-19. Provide each gas contract (whether for gas, gas transportation, balancing, call options,
etc.) for the Nelson gas generating station. Please provide information in sufficient detail
to determine quantities acquired and rates charged.
18-20. Provide each gas contract (whether for gas, gas transportation, balancing, call options,
etc.) for the Louisiana Station generating station. Please provide information in sufficient
detail to determine quantities acquired and rates charged.
18-21. Referring to ETI's response to Cities 7-73, please state what plant contained in accounts
311, 312, 315, and 316 is reflected in the Company's proposed rates.
18-22. Referring to ETI's response to Cities 7-73, please provide the basis for the claimed
acquisition adjustment and state the property acquired, the book value at acquisition, the
purchase price, and the date of acquisition.
18-23. Referring to ETI's response to Cities 7-73, please provide the basis for the claimed
adjustment to book original cost and state the property acquired, the book value at
acquisition, the purchase price, and the date of acquisition.
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