MISO
FERC Electric Tariff
SCHEDULES
SCHEDULE 47
Entergy Operating Companies - MISO Transition Cost Recovery
32.0.0
Entergy Arkansas, Inc.
Entergy Gulf States Louisiana, L.L.C.
Entergy Louisiana, LLC
Entergy Mississippi, Inc.
Entergy New Orleans, Inc.
Entergy Texas, Inc.
ENTERGY OPERATING COMPANIES
MISO Transition Cost Recovery
I.
GENERAL
This Schedule 47 to the Open Access Transmission, Energy, and Operating Reserve
Markets Tariff (“Tariff”) of Midcontinent Independent System Operator, Inc. (“MISO”),
provides for recovery of the deferred operation and maintenance costs and accrued carrying
charges accumulated by the Entergy Operating Companies1 related to their integration into
MISO (collectively, the “Transition Costs”). FERC approved the Entergy Operating Companies’
proposed deferred accounting treatment for the Transition Costs in its April 3, 2012, order in
Docket No. AC11-130. Pursuant to this Schedule 47, the Entergy Operating Companies will
recover their FERC-approved Transition Costs from MISO transmission customers taking
service in Entergy’s Transmission Pricing Zones (“TPZ”) during the recovery period identified
in Section IV (“Term”).
The charges herein will be billed to all Network Integration Transmission Service and
Point-to-Point Transmission Service customers taking service under the MISO Tariff in the
Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas transmission
pricing zones during the Term of this Schedule 47. The charges under this Schedule 47 are not
applicable to transmission services used by the Entergy Operating Companies taking service in
the Entergy TPZs to serve their retail customers.
The Transition Costs to be recovered for each Entergy Operating Company under this
Schedule 47, including interest at the annual interest rate identified at 18 C.F.R. §
35.19a(a)(2)(iii) (currently 3.25%), are as follows: Entergy Arkansas, Inc.: $3,700,000; Entergy
Gulf States Louisiana, L.L.C.: $548,000; Entergy Louisiana, LLC: $743,000; Entergy
Mississippi, Inc.: $378,024; Entergy New Orleans, Inc.: $70,000; and Entergy Texas, Inc.:
$562,000.
1
.
The Entergy Operating Companies are Entergy Arkansas, Inc.; Entergy Gulf States, L.L.C.;
Entergy Louisiana, LLC; Entergy Mississippi, Inc.; Entergy New Orleans, Inc.; and Entergy Texas, Inc.
Effective On: November 1, 2015
MISO
FERC Electric Tariff
SCHEDULES
II.
SCHEDULE 47
Entergy Operating Companies - MISO Transition Cost Recovery
32.0.0
CHARGES
A customer receiving Point-to-Point Transmission Service or Network Integration
Transmission Service within an Entergy TPZ shall pay a monthly charge for the Transition Costs
based on rates calculated pursuant to Section III below for each of the Entergy TPZs (Entergy
Arkansas TPZ; Entergy Louisiana TPZ; Entergy Mississippi TPZ; and Entergy Texas TPZ). The
charges are based on the amount of transmission service provided to a wholesale customer in any
calendar month multiplied by the Transition Cost Rate, as defined in Section III below. The
resulting charges will be applied to Network Integration Transmission Service and Point-to-Point
Transmission Service customers taking transmission service in the Entergy TPZs during the
Term of this Schedule 47.
III.
RATE CALCULATION
MISO requested FERC to accept this Rate Schedule 47 effective as of June 1, 2014. If
FERC grants such effective date, on or before June 1 of each applicable year for the first twentyfour months of the Term, the Transmission Provider, utilizing Appendix I data provided by the
Entergy Operating Companies, shall calculate a Transition Cost Rate (“Rate”) for each of the
Entergy TPZs to be effective for the period June 1 through the following May 31. If FERC
establishes an effective date for this Schedule 47 other than June 1, 2014, references in this
Schedule 47 to June 1 shall mean the effective date established by FERC and references to May
31 shall mean the last day of the twelfth month after such effective date.
For each Entergy TPZ, the Transmission Provider, using Entergy Operating Company
information, will calculate the annual rate for the year consistent with the formula template
provided in Appendix I to this Schedule 47 by dividing 50 percent of the Transition Costs by the
zonal rate divisor. The zonal rate divisor shall be the non-retail load component of the divisor
used in determining the rates for transmission service in each Entergy TPZ. The Entergy
Operating Companies will provide such non-retail load information to MISO.
The per-unit rates will be calculated as follows:
The monthly rate per MW will be the annual rate divided by 12
The weekly rate per MW will be the annual rate divided by 52
The On-Peak daily rate per MW will be the annual rate divided by 260 (capped at weekly
rate)
The On-Peak hourly rate per MW will be the annual rate divided by 4,160 (capped at daily
rates)
The Off-Peak daily rate per MW will be the annual rate divided by 365
The Off-Peak hourly rate per MW will be the annual rate divided by 8,760
Effective On: November 1, 2015
MISO
FERC Electric Tariff
SCHEDULES
SCHEDULE 47
Entergy Operating Companies - MISO Transition Cost Recovery
32.0.0
These rates will be applied to the applicable Firm Point-to-Point Transmission Service,
Non-Firm Point-to-Point Transmission Service, and Network Integration Transmission Service
reservations of transmission service customers taking service in the applicable Entergy TPZs.
Schedule 47 is not applicable to transmission services used by the Entergy Operating Companies
taking service in the Entergy TPZs to serve their retail customers.
As explained in Section IV, Schedule 47’s rates will be assessed for the twelve-month
period commencing June 1, 2014, until May 31 of the following year, at which time the rate for
the next twelve-month period will be calculated. If the Entergy Operating Companies have not
recovered the total amount of the Transition Costs after twenty-four months, the rate for their
recovery of the remaining Transmission Costs will be the rate in effect on the twenty-fourth
month. Such rate will remain in effect each month after the twenty-fourth until the balance of
Transition Costs is zero. Entergy will provide notice to MISO within 7 business day after the
Transition Cost balance has reached zero. MISO will use this notice to discontinue the Schedule
47 billings for future months.
IV.
TERM OF RECOVERY
A.
Beginning with service provided during the first month after FERC accepts this
Schedule 47 for filing, the Transmission Owner designee in each Entergy TPZ shall calculate
each month the Transition Cost Balance for the applicable Entergy TPZ, which amount shall be
the Transition Costs less the cumulative sum of the amounts billed to the wholesale transmission
customers under this Schedule 47.
B.
The Term of this Schedule 47 will commence on the date this Schedule 47 is
accepted for filing by FERC for each Entergy TPZ and end for an Entergy TPZ in the month in
which the Transition Cost Balance for that Entergy TPZ is reduced to zero.
V.
EFFECTIVE DATE
This Schedule 47 shall be effective as of the date established by FERC.
VI.
REVENUE DISTRIBUTION
All revenues that the Transmission Provider collects under this Schedule 47 shall be
remitted to the applicable Entergy transmission owner within each Entergy TPZ.
Effective On: November 1, 2015
MISO
FERC Electric Tariff
SCHEDULES
SCHEDULE 47
Entergy Operating Companies - MISO Transition Cost Recovery
32.0.0
The Transition Costs to be recovered by an Entergy Operating Company within each
Entergy TPZ shall be capped at the amounts set forth in Section I. To the extent the actual cost
recovery exceeds the authorized recovery amount for an Entergy Operating Company within an
Entergy TPZ, the excess recovery shall be refunded, with interest calculated in accordance with
18 CFR § 35.19.a., at the conclusion of the amortization period. The final reconciliation to
capped amounts set forth in Section I shall be a one-time billing adjustment to customers to
whom rates under Schedule 47 were applied in the final month of the amortization period. The
one-time billing adjustment shall be allocated to each customer on the same proportion as was
that customer’s Schedule 47 bill to the total Schedule 47 billing in the final month of service.
VII.
ADMINISTRATION
The application of Schedule 47 will be subject to review and challenge. All customers
taking service under the MISO Tariff during the Term of this Schedule 47 will have the right to
seek discovery regarding the application of Schedule 47, including information as to how refunds
are calculated. Such discovery may include information and document requests. The Entergy
Operating Companies shall make a good faith effort to respond to such requests within fifteen
business days of receipt. Customers will also have the right to challenge application of Schedule
47 either informally or through a formal challenge with FERC. In any proceeding initiated by
FERC concerning the application of Schedule 47, each Entergy Operating Company will bear the
burden of proving that it has correctly applied Schedule 47.
To the extent the actual cost recovery exceeds the authorized recovery amount for an
Entergy Operating Company, the excess recovery shall be refunded, with interest calculated in
accordance with 18 CFR § 35.19.a. To the extent the actual cost recovery is less than the
authorized recovery amount for an Entergy Operating Company, the under-recovered amount
shall be collected, with interest calculated in accordance with 18 CFR § 35.19.a.
Effective On: November 1, 2015
MISO
FERC Electric Tariff
SCHEDULES
SCHEDULE 47
Entergy Operating Companies - MISO Transition Cost Recovery
32.0.0
Entergy Operating Companies
Recovery of MISO Transition Costs
Line
No.
Amount
1
REVENUE REQUIREMENT - TRANSITION COSTS
2
DIVISOR (1)
3
4
Annual Cost ($ / kW / Yr) ( (Line 1 * .5) / Line 2)
Network & P-to-P Rate ($ / kW / Mo) (Line 3 / 12)
5
6
7
Point-To-Point Rate ($ / kW / Wk) (Line 3 / 52; Line 3 / 52)
Point-To-Point Rate ($ / kW / Day) (Line 3 / 260; Line 3 / 365)
Point-To-Point Rate ($ / MWh) (Line 3 / 4,160; Line 3 / 8,760 * 1,000)
Note:
MISO Tariff Schedule 47
Appendix I
Page 1 of 1
$0.000
$0.000
Peak Rate
$0.000
$0.000 Capped at weekly rate
$0.000 Capped at weekly and daily rates
Off-Peak Rate
$0.000
$0.000
$0.000
(1) The divisor shall be the non-retail load component of the divisor used in determining the rates for transmission service.
Effective On: November 1, 2015