Entergy Corporation and Subsidiaries Notes to Financial Statements
## Table 0 ##
In September 2016 the FERC accepted the February 2016 compliance filing subject to a further compliance filing made in November 2016.
The further compliance filing was required as a result of an order issued in September 2016 ruling on the January 2016 rehearing requests filed by the LPSC, the APSC, and Entergy.
In the order addressing the rehearing requests, the FERC granted the LPSC’s rehearing request and directed that interest be calculated on the payment/receipt amounts.
The FERC also granted the APSC’s and Entergy’s rehearing request and ordered the removal of both securitized asset accumulated deferred income taxes and contra-securitization accumulated deferred income taxes from the calculation.
In November 2016, Entergy submitted its compliance filing in response to the FERC’s order on rehearing.
The compliance filing included a revised refund calculation of the true-up payments and receipts based on 2009 test year data and interest calculations.
The LPSC protested the interest calculations.
In November 2017 the FERC issued an order rejecting the November 2016 compliance filing.
The FERC determined that the payments detailed in the November 2016 compliance filing did not include adequate interest for the payments from Entergy Arkansas to Entergy Louisiana because it did not include interest on the principal portion of the payment that was made in February 2016.
In December 2017, Entergy recalculated the interest pursuant to the November 2017 order.
As a result of the recalculations, Entergy Arkansas owed very minor payments to Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans.2011 Rate Filing Based on Calendar Year 2010 Production Costs In May 2011, Entergy filed with the FERC the 2011 rates in accordance with the FERC’s orders in the System Agreement proceeding. ?
?Several parties intervened in the proceeding at the FERC, including the LPSC, which also filed a protest. ?
?In July?2011 the FERC?accepted Entergy’s proposed rates for filing,?effective June?1,?2011,?subject to refund.
After an abeyance of the proceeding schedule, in December 2014 the FERC consolidated the 2011 rate filing with the 2012, 2013, and 2014 rate filings for settlement and hearing procedures.
See discussion below regarding the consolidated settlement and hearing procedures in connection with this proceeding.2012 Rate Filing Based on Calendar Year 2011 Production Costs In May 2012, Entergy filed with the FERC the 2012 rates in accordance with the FERC’s orders in the System Agreement proceeding. ?
?Several parties intervened in the proceeding at the FERC, including the LPSC, which also filed a protest. ?
?In August 2012 the FERC?accepted Entergy’s proposed rates for filing,?effective June?2012,?subject to refund.
After an abeyance of the proceeding schedule, in December 2014 the FERC consolidated the 2012 rate filing with the 2011, 2013, and 2014 rate filings for settlement and hearing procedures.
See discussion below regarding the consolidated settlement and hearing procedures in connection with this proceeding.2013 Rate Filing Based on Calendar Year 2012 Production Costs In May 2013, Entergy filed with the FERC the 2013 rates in accordance with the FERC’s orders in the System Agreement proceeding.
Several parties intervened in the proceeding at the FERC, including the LPSC, which also filed a protest.
The City Council intervened and filed comments related to including the outcome of a related FERC proceeding in the 2013 cost equalization calculation.
In August 2013 the FERC issued an order accepting the 2013 rates, effective June 1, 2013, subject to refund.
After an abeyance of the proceeding schedule, in December 2014 the FERC consolidated the 2013 rate filing with the 2011, 2012, and 2014 rate filings for settlement and hearing procedures.
In November 2017, Entergy Utility Holding Company, LLC issued 15,000 shares of $1,000 par value 6.25% Series B Preferred Membership Interests, all of which are outstanding as of December 31, 2017.
The distributions are cumulative and payable quarterly.
These units are redeemable on or after February 28, 2038, at Entergy Utility Holding Company, LLC’s option, at the fixed redemption price of $1,000 per share.
In October 2015, Entergy Utility Holding Company, LLC issued 110,000 shares of $1,000 par value 7.5% Series A Preferred Membership Interests, all of which are outstanding as of December 31, 2017.
The distributions are cumulative and payable quarterly.
These units are redeemable on or after January 1, 2036, at Entergy Utility Holding Company, LLC’s option, at the fixed redemption price of $1,000 per share.
In December 2013, Entergy Finance Holding, Inc.  issued 250,000 shares of $100 par value 8.75% Series Preferred Stock, all of which are outstanding as of December 31, 2017.
The dividends are cumulative and payable quarterly.
The preferred stock is redeemable on or after December 16, 2023, at Entergy Finance Holding, Inc. ’s option, at the fixed redemption price of $100 per share.
The number of shares and units authorized and outstanding and dollar value of preferred stock for Entergy Arkansas, Entergy Mississippi, and Entergy New Orleans as of December?31, 2017 and 2016 are presented below. ?
?All series of the Utility operating companies’ preferred stock are redeemable at the respective company’s option at the call prices presented. ?
?Dividends and distributions paid on all of Entergy’s preferred stock and membership interests series are eligible for the dividends received deduction.
## Table 1 ##
Shares
## Table 2 ##
Entergy Arkansas, Inc.  and Subsidiaries Management’s Financial Discussion and Analysis Nuclear Decommissioning Costs See “Nuclear Decommissioning Costs” in the “Critical Accounting Estimates” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of the estimates inherent in accounting for nuclear decommissioning costs.
Utility Regulatory Accounting See “Utility Regulatory Accounting” in the “Critical Accounting Estimates” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of accounting for the effects of rate regulation.
Unbilled Revenue See “Unbilled Revenue” in the “Critical Accounting Estimates” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of the estimates associated with the unbilled revenue amounts.
Impairment of Long-lived Assets and Trust Fund Investments See “Impairment of Long-lived Assets and Trust Fund Investments” in the “Critical Accounting Estimates” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for discussion of the estimates associated with the impairment of long-lived assets and trust fund investments.
Taxation and Uncertain Tax Positions See “Taxation and Uncertain Tax Positions” in the “Critical Accounting Estimates” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion.
Qualified Pension and Other Postretirement Benefits Entergy Arkansas’s qualified pension and other postretirement reported costs, as described in Note 11 to the financial statements, are impacted by numerous factors including the provisions of the plans, changing employee demographics, and various actuarial calculations, assumptions, and accounting mechanisms.
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?See the “Qualified Pension and Other Postretirement Benefits” in the “Critical Accounting Estimates” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis for further discussion. ?
?Because of the complexity of these calculations, the long-term nature of these obligations, and the importance of the assumptions utilized, Entergy’s estimate of these costs is a critical accounting estimate.
Costs and Sensitivities The following chart reflects the sensitivity of qualified pension cost and qualified projected benefit obligation to changes in certain actuarial assumptions (dollars in thousands).
## Table 3 ##
Entergy Mississippi, Inc.  Management’s Financial Discussion and Analysis Entergy Mississippi may refinance, redeem, or otherwise retire debt and preferred stock prior to maturity, to the extent market conditions and interest and dividend rates are favorable.
All debt and common and preferred stock issuances by Entergy Mississippi require prior regulatory approval. ?
?Preferred stock and debt issuances are also subject to issuance tests set forth in its corporate charter, bond indenture, and other agreements. ?
?Entergy Mississippi has sufficient capacity under these tests to meet its foreseeable capital needs.
Entergy Mississippi’s receivables from the money pool were as follows as of December 31 for each of the following years
## Table 4 ##
See Note 4 to the financial statements for a description of the money pool.
Entergy Mississippi has four separate credit facilities in the aggregate amount of $102.5 million scheduled to expire May 2018.
No borrowings were outstanding under the credit facilities as of December?31, 2017. ?
?In addition, Entergy Mississippi is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO.
As of December?31, 2017, a $15.3 million letter of credit was outstanding under Entergy Mississippi’s uncommitted letter of credit facility.
See Note 4 to the financial statements for additional discussion of the credit facilities.
Entergy Mississippi obtained authorizations from the FERC through October 2019 for short-term borrowings not to exceed an aggregate amount of $175 million at any time outstanding and long-term borrowings and security issuances.
See Note 4 to the financial statements for further discussion of Entergy Mississippi’s short-term borrowing limits.
State and Local Rate Regulation and Fuel-Cost Recovery The rates that Entergy Mississippi charges for electricity significantly influence its financial position, results of operations, and liquidity.
Entergy Mississippi is regulated and the rates charged to its customers are determined in regulatory proceedings.
A governmental agency, the MPSC, is primarily responsible for approval of the rates charged to customers.
Formula Rate Plan In March 2016, Entergy Mississippi submitted its formula rate plan 2016 test year filing showing Entergy Mississippi’s projected earned return for the 2016 calendar year to be below the formula rate plan bandwidth.
The filing showed a $32.6 million rate increase was necessary to reset Entergy Mississippi’s earned return on common equity to the specified point of adjustment of 9.96%, within the formula rate plan bandwidth.
In June 2016 the MPSC approved Entergy Mississippi’s joint stipulation with the Mississippi Public Utilities Staff.
The joint stipulation provided for a total revenue increase of $23.7 million.
The revenue increase includes a $19.4 million increase through the formula rate plan, resulting in a return on common equity point of adjustment of 10.07%.
The revenue increase also includes $4.3 million in incremental ad valorem tax expenses to be collected through an updated ad valorem tax adjustment rider.
The revenue increase and ad valorem tax adjustment rider were effective with the July 2016 bills.
In March 2017, Entergy Mississippi submitted its formula rate plan 2017 test year filing and 2016 look-back filing showing Entergy Mississippi’s earned return for the historical 2016 calendar year and projected earned return for the 2017 calendar year to be within the formula rate plan bandwidth, resulting in no change in rates.
In June 2017, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a stipulation that confirmed that Entergy
Entergy Corporation and Subsidiaries Notes to Financial Statements After enactment of the Tax Cuts and Jobs Act the PUCT issued an order requiring most utilities, including Entergy Texas, beginning January 25, 2018, to record a regulatory liability for the difference between revenues collected under existing rates and revenues that would have been collected had existing rates been set using the new federal income tax rates and also for the balance of excess accumulated deferred income taxes.
The order also directs the PUCT staff to investigate each investor-owned utility on a case-by-case basis to determine the appropriate mechanism to adjust its rates to reflect the changes under the Act.
In both a memorandum issued prior to the open meeting when the order was discussed and during the discussions at the open meeting discussing the order, the PUCT indicated that it would consider utility earnings in determining the treatment of the liability and the effects of the Act.
Entergy Texas had previously provided information to the PUCT Staff in the docket and stated that it expects the PUCT to address the lower tax expense as part of Entergy Texas’s rate case expected to be filed in May 2018.
Entergy Texas also stated that it would be inappropriate for the PUCT to require a refund of the reduction in income tax expense in 2018 resulting from the Act on a retroactive basis and without a comprehensive review of Entergy Texas’s cost of service and earned return on equity.
In a subsequent order issued following the February 2018 open meeting, the PUCT clarified that carrying costs need not be recorded as part of the regulatory liability.
The Registrant Subsidiaries will continue to work with their respective regulators to determine the appropriate path forward in each jurisdiction regarding the effects of the Act.
Fuel and purchased power cost recovery Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas are allowed to recover fuel and purchased power costs through fuel mechanisms included in electric and gas rates that are recorded as fuel cost recovery revenues. ?
?The difference between revenues collected and the current fuel and purchased power costs is generally recorded as “Deferred fuel costs” on the Utility operating companies’ financial statements. ?
?The table below shows the amount of deferred fuel costs as of December?31, 2017 and 2016 that Entergy expects to recover (or return to customers) through fuel mechanisms, subject to subsequent regulatory review.

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Payments (Receipts) (In Millions)</td></tr><tr><td>Entergy Arkansas</td><td>$2</td></tr><tr><td>Entergy Louisiana</td><td>$6</td></tr><tr><td>Entergy Mississippi</td><td>-$4</td></tr><tr><td>Entergy New Orleans</td><td>-$1</td></tr><tr><td>Entergy Texas</td><td>-$3</td></tr></table>
<table><tr><td></td><td colspan="2">SharesAuthorizedand Outstanding</td><td colspan="2"></td><td rowspan="2">Call Price perShare as ofDecember 31, 2017</td></tr><tr><td></td><td>2017</td><td>2016</td><td>2017</td><td>2016</td></tr><tr><td>Entergy Arkansas Preferred Stock</td><td></td><td></td><td colspan="2">(Dollars in Thousands)</td><td></td></tr><tr><td>Without sinking fund:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cumulative, $100 par value:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>4.32% Series</td><td>70,000</td><td>70,000</td><td>$7,000</td><td>$7,000</td><td>$103.65</td></tr><tr><td>4.72% Series</td><td>93,500</td><td>93,500</td><td>9,350</td><td>9,350</td><td>$107.00</td></tr><tr><td>4.56% Series</td><td>75,000</td><td>75,000</td><td>7,500</td><td>7,500</td><td>$102.83</td></tr><tr><td>4.56% 1965 Series</td><td>75,000</td><td>75,000</td><td>7,500</td><td>7,500</td><td>$102.50</td></tr><tr><td>Total without sinking fund</td><td>313,500</td><td>313,500</td><td>$31,350</td><td>$31,350</td><td></td></tr></table>
<table><tr><td></td><td colspan="2">SharesAuthorizedand Outstanding</td><td colspan="2"></td><td rowspan="2">Call Price perShare as ofDecember 31, 2017</td></tr><tr><td></td><td>2017</td><td>2016</td><td>2017</td><td>2016</td></tr><tr><td>Entergy Mississippi Preferred Stock</td><td></td><td></td><td colspan="2">(Dollars in Thousands)</td><td></td></tr><tr><td>Without sinking fund:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cumulative, $100 par value:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>4.36% Series</td><td>59,920</td><td>59,920</td><td>$5,992</td><td>$5,992</td><td>$103.86</td></tr><tr><td>4.56% Series</td><td>43,887</td><td>43,887</td><td>4,389</td><td>4,389</td><td>$107.00</td></tr><tr><td>4.92% Series</td><td>100,000</td><td>100,000</td><td>10,000</td><td>10,000</td><td>$102.88</td></tr><tr><td>Total without sinking fund</td><td>203,807</td><td>203,807</td><td>$20,381</td><td>$20,381</td><td></td></tr></table>
<table><tr><td>Actuarial Assumption</td><td>Change in Assumption</td><td>Impact on 2018 Qualified Pension Cost Increase/(Decrease)</td><td>Impact on 2017 Qualified Projected Benefit Obligation</td></tr><tr><td>Discount rate</td><td>-0.25%</td><td>$3,107</td><td>$47,040</td></tr><tr><td>Rate of return on plan assets</td><td>-0.25%</td><td>$2,914</td><td>$-</td></tr><tr><td>Rate of increase in compensation</td><td>0.25%</td><td>$1,353</td><td>$6,446</td></tr></table>
<table><tr><td>2017</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>(In Thousands)</td></tr><tr><td>$1,633</td><td>$10,595</td><td>$25,930</td><td>$644</td></tr></table>

Question: what was the percent of the joint stipulation approve revenue increase based on formula rates
Answer: 0.81857
Reasoning program: divide(19.4,23.7)