Document:

Exhibit

Exhibit 10(b)14

THIS LEASE SUPPLEMENT NO. 4 HAS BEEN EXECUTED IN SEVERAL COUNTERPARTS. SEE SECTION 3(c) OF THIS LEASE SUPPLEMENT NO. 4 FOR INFORMATION CONCERNING THE RIGHTS OF HOLDERS OF VARIOUS COUNTERPARTS HEREOF.

THIS COUNTERPART IS NOT THE ORIGINAL COUNTERPART

===========================================================================

LEASE SUPPLEMENT NO. 4

dated as of May 28, 2014

to

FACILITY LEASE NO. 2

dated as of December 1, 1988,

as supplemented,

between

U.S. BANK NATIONAL ASSOCIATION
(as successor in interest to MERIDIAN TRUST COMPANY)
and MILDRED F. SMITH
(as successor in interest to Stephen M. Carta)
not in their individual capacities, but solely as Owner Trustee under
Trust Agreement No. 2 dated as of December 1, 1988, with Cypress GG2, LLC,
as successor in interest to Textron Financial Corporation,

Lessor

and

SYSTEM ENERGY RESOURCES, INC.,

Lessee

===========================================================================

===========================================================================

Indexing Instructions: This Lease Supplement No. 4, dated as of May 28, 2014, is filed as an amendment to Facility Lease No. 2 between U.S. Bank National Association (as successor in interest to Meridian Trust Company) and Mildred F. Smith (as successor in interest to Stephen M. Carta), both as Lessor, and System Energy Resources, Inc., as Lessee, dated as of December 1, 1988, and recorded in Book 12-Z, Page 126, on December 28, 1988, in the office of the Chancery Clerk of Claiborne County, Mississippi. Pursuant to Section 89-5-33(3)(b) of the Mississippi Code, as amended, no indexing instruction is required for this instrument because it is one affecting a previously recorded instrument. As required by Mississippi law, this instrument shall be entered in the general index and noted on the margin of the previously recorded instrument
.
Prepared by:         Wise Carter Child & Caraway, Professional Association
P. O. Box 651
Jackson, MS 39205-0651
(601) 968-5500

===========================================================================

    

LEASE SUPPLEMENT NO. 4, dated as of May 28, 2014 ("Lease Supplement No. 4"), to FACILITY LEASE NO. 2, dated as of December 1, 1988, as supplemented (the "Facility Lease"), between U.S. BANK NATIONAL ASSOCIATION (as successor in interest to MERIDIAN TRUST COMPANY), a national banking association, not in its individual capacity, but solely as Corporate Owner Trustee and MILDRED F. SMITH (as successor in interest to Stephen M. Carta) not in her individual capacity, but solely as successor Individual Owner Trustee (together, the "Lessor"), under the Trust Agreement (such term, and all other capitalized terms used herein without definition, being defined as provided in Section 1 below), and SYSTEM ENERGY RESOURCES, INC., an Arkansas corporation (the "Lessee").

W I T N E S S E T H:

WHEREAS, the Lessee and the Lessor have heretofore entered into the Facility Lease providing for the lease by the Lessor to the Lessee of the Undivided Interest; and

WHEREAS, the Lessee and the Owner Participant have executed and delivered Lease Renewal Instrument No. 2, dated as of May 28, 2014 (the “LRI”), pursuant to which the Lessee has elected to exercise its option pursuant to Section 12(b) and Section 13(a) of the Facility Lease to renew the Facility Lease for a renewal term (the “Selected Renewal Term”) with the following terms (collectively, the “Selected Renewal Term Provisions”):

(i) the Selected Renewal Term will commence on July 15, 2015 and end on July 15, 2036;

(ii) the amount of Basic Rent payable on each Basic Rent Payment Date in the Selected Renewal Term, commencing with the Basic Rent Payment Date on January 15, 2016 and ending with the Basic Rent Payment Date on July 15, 2036, shall be $1,718,750; and

(iii) the Casualty Value as of July 15, 2015 shall remain unchanged with Casualty Values as of subsequent Basic Rent Payment Dates during the Selected Renewal Term amortizing ratably from $48,750,000.00 as of the commencement of the Selected Renewal Term in semi-annual steps to $9,750,000.00 as of July 15, 2036; 

WHEREAS, the Owner Participant has agreed to the Selected Renewal Term Provisions;

WHEREAS, the Lessor, at the direction of the Owner Participant, and the Lessee have agreed to this Lease Supplement No. 4 to the Lease in order to further evidence the Lessee’s election of the option to renew the Facility Lease with the Selected Renewal Term Provisions; and

WHEREAS, the Refunding Notes (designated “Promissory Notes, Fixed Rate Refunding Series due 2013”) created and established by Supplemental Indenture No. 3 dated as of April 1,  2004 were repaid in full at their maturity on January 15, 2013 (the “Refunding Note Repayment”) and are, therefore, no longer Outstanding and the Indenture has been discharged; 

NOW, THEREFORE, in consideration of the premises and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

SECTION 1. Definitions.

(a) For purposes of this Lease Supplement No. 4, capitalized terms used herein and not otherwise defined herein or in the recitals hereto shall have the meanings assigned to such terms in Appendix A to the Facility Lease (as heretofore amended and as further amended hereby, “Appendix A”). 

(b) The Appendix A definitions of “Casualty Value,” and “Special Casualty Value” are each hereby amended and restated in their entirety for all purposes of the Facility Lease (as amended hereby) and the other Transaction Documents as follows: 

“Casualty Value” 
(x) as of any date during the Basic Lease Term, shall mean the percentage of Facility Cost (USD $100,000,000.00) set forth opposite such date (or the Basic Rent Payment Date next succeeding such date) in Schedule 2 to the Facility Lease as added by Lease Supplement No. 3 dated as of May 1, 2004,  
 (y)  as of any date during the Selected Renewal Term, shall mean the sum of 
(1) the amount in dollars set forth opposite such date (or the Basic Rent Payment Date next succeeding such date) in Schedule 1 to this Lease Supplement No. 4, and 
(2) Basic Rent then due or to become due on such next succeeding Basic Rent Payment Date, and 
(z) as of any date during any Renewal Term other than the Selected Renewal Term, shall mean the amount determined by amortizing ratably the Fair Market Sales Value of the Undivided Interest as of the commencement of such Renewal Term in semi-annual steps to the amount estimated as of such commencement date to be the Fair Market Sales Value of the Undivided Interest as of the last day of such Renewal Term, together with amounts of Basic Rent then due.
“Special Casualty Value” 
(x) as of any date during the Basic Lease Term, shall mean the percentage of Facility Cost (USD $100,000,000) set forth opposite such date (or the Basic Rent Payment Date next succeeding such date) in Schedule 3 to the Facility Lease as added by Lease Supplement No. 3 dated as of May 1, 2004, and 
 (y) as of any date during any Renewal Term (including the Selected Renewal Term), shall mean an amount equal to Casualty Value for such date.
(c) Appendix A is hereby amended for all purposes of the Facility Lease (as amended hereby) and the other Transaction Documents as follows:

“Selected Renewal Term” shall mean the renewal period commencing on July 15, 2015 and ending on July 15, 2036. The Lessor and the Lessee have agreed that the Selected Renewal Term shall be deemed to be a Renewal Term for all purposes of the Facility Lease and the other Transaction Documents.

SECTION 2. Facility Lease Amendments; Additional Schedule.

(a) Amendment to Section 3(a)(iii). Section 3(a)(iii) of the Lease is re-designated as Section 3(a)(iii)(B) and, immediately preceding such re-designated Section 3(a)(iii)(B), a new Section 3(a)(iii)(A) is inserted as follows:
“(iii)(A) on each Rent Payment Date in the Selected Renewal Term, commencing with the Rent Payment Date on January 15, 2016 and ending on the Rent Payment Date on July 15, 2036, an amount equal to $1,718,750; and”
(b) Selected Renewal Term.  The Lessee has elected the Selected Renewal Term. As set  forth in Sections 12(b) and Section 13(a) of the Facility Lease, such election shall be irrevocable as to the Lessee, but shall not be binding on the Lessor if, on July 15, 2015, an Event of Default shall have occurred and be continuing or an Event of Loss or a Deemed Loss Event shall have occurred and the Lessor shall have demanded payment under Section 9(c) or 9(d), as the case may be, or in response to which a Special Transfer has been effected.

(c) Schedule 1. Schedule 1 to this Lease Supplement No. 4 is a part of this Lease Supplement No. 4 and shall be effective for all purposes of the Facility Lease (as amended hereby) and the other Transaction Documents.

SECTION 3.  Miscellaneous.

(a) Counterpart Execution. This Lease Supplement No. 4 may be executed in any number of counterparts and by each of the parties hereto or thereto on separate counterparts, all such counterparts together constituting but one and the same instrument.

(b) Execution as Lease Supplement. This Lease Supplement No. 4 is executed and shall be construed as a supplement and amendment to the Facility Lease and shall form a part thereof. On and from the delivery of this Lease Supplement No. 4, any reference in any Transaction Document to the Facility Lease shall be deemed to refer to the Facility Lease as supplemented and amended by this Lease Supplement No. 4.

(c) Original Counterpart. The single executed original of this Lease Supplement No. 4 marked "THIS COUNTERPART IS THE ORIGINAL COUNTERPART" and containing the receipt of the Corporate Owner Trustee thereon shall be the "Original" of this Lease Supplement No. 4. To the extent that the Facility Lease, as supplemented by this Lease Supplement No. 4, constitutes chattel paper, as such term is defined in the Uniform Commercial Code as in effect in any applicable jurisdiction, no security interest in the Facility Lease, as so supplemented, may be created or continued through the transfer or possession of any counterparts of the Facility Lease and supplements thereto other than the "Originals" of any thereof.

(d) Concerning the Lessor. U.S. Bank National Association and Mildred F. Smith are entering into this Lease Supplement No. 4 solely as Corporate Owner Trustee and successor Individual Owner Trustee under the Trust Agreement and not in their individual capacities. Anything herein to the contrary notwithstanding, all and each of the agreements herein made on the part of the Corporate Owner Trustee and successor Individual Owner Trustee are made and intended not as personal agreements of U.S. Bank National Association and Mildred F. Smith but are made and intended for the purpose of binding only the Trust Estate.

(e) Lease Renewal Instrument No. 2. The Lessee and the Owner Participant have acknowledged that this Lease Supplement No. 4 fulfills the requirements of Section 1(c) of the LRI. The LRI has not merged into, and has not been superseded by, this Lease Supplement No. 4 and the LRI shall remain in full force and effect notwithstanding the execution, delivery and performance of the Selected Renewal Term Provisions. The LRI is a Transaction Document for all purposes of the Transaction Documents.

// Signature page follows //

    

IN WITNESS WHEREOF, each of the parties hereto has caused this Lease Supplement No. 4 to be duly executed by an officer thereunto duly authorized, as of the date set forth above.

U.S. BANK NATIONAL ASSOCIATION (as successor in interest to MERIDIAN TRUST COMPANY), not in its individual capacity but solely as Corporate Owner Trustee

By: /s/ Mildred F. Smith
       Name: Mildred F. Smith    
      Title: Vice  President

/s/ Mildred F. Smith
MILDRED F. SMITH, not in her individual capacity but solely as successor Individual Owner Trustee

ATTEST: /s/ Dawn Balash                                             SYSTEM ENERGY RESOURCES, INC.
                        
By: /s/ Steven McNeal
       Name: Steven C. McNeal    
       Title: Vice President and Treasurer

STATE OF DELAWARE        )
) ss. 
COUNTY OF NEW CASTLE    ) 

Personally appeared before me, the undersigned authority in and for the said County and State on this 22nd day of May, 2014, within my jurisdiction, the within named Mildred F. Smith, who acknowledged that she is a Vice President of U.S. BANK NATIONAL ASSOCIATION, a national banking association, as successor Corporate Owner Trustee under that certain Trust Agreement No. 2, dated as of December 1, 1988 among Cypress GG2, LLC, as Owner Participant, U.S. BANK NATIONAL ASSOCIATION, as Corporate Owner Trustee, and MILDRED F. SMITH, as successor Individual Owner Trustee, and that for and on behalf of the said banking association, and as its act and deed in said capacity as Corporate Owner Trustee and its having been duly authorized so to do, she executed the above and foregoing instrument, after first having been duly authorized by said banking association so to do.

                            /s/ Kenneth E. Holbert, Sr.
                                        Notary Public
KENNETH E. HOLBERT, SR.
NOTARY PUBLIC
State of Delaware
My Commission Expires: October 4, 2016

My Commission Expires:
______________________

STATE OF DELAWARE         )
) ss. 
COUNTY OF NEW CASTLE    ) 

Personally appeared before me, the undersigned authority in and for the said County and State on this 22nd day of May, 2014, within my jurisdiction, the within named MILDRED F. SMITH, who acknowledged that she is Individual Owner Trustee under that certain Trust Agreement No. 2, dated as of December 1, 1988 among Cypress GG2, LLC, as Owner Participant, U.S. BANK NATIONAL ASSOCIATION, as Corporate Owner Trustee, and MILDRED F. SMITH, as successor Individual Owner Trustee, and that in her capacity as Individual Owner Trustee, she executed the above and foregoing instrument, after first having been duly authorized so to do..

                        /s/ Kenneth E. Holbert, Sr.
                                        Notary Public
KENNETH E. HOLBERT, SR.
NOTARY PUBLIC
State of Delaware
My Commission Expires: October 4, 2016

My Commission Expires:
______________________

STATE OF LOUISIANA         )
) ss. 
PARISH OF ORLEANS        ) 

Personally appeared before me, the undersigned authority in and for the said Parish and State on this 28th day of May, 2014, within my jurisdiction, the within named Steven C. McNeal, who acknowledged that he is the Vice President and Treasurer of SYSTEM ENERGY RESOURCES, INC., an Arkansas corporation, and that for and on behalf of the said corporation, and as its act and deed he executed the above and foregoing instrument, after first having been duly authorized by said corporation so to do.

                        /s/ Jennifer Favalora
                                        Notary Public
JENNIFER B. FAVALORA
Notary Public (ID# 57639)
Orleans Parish, Louisiana
Commission Issued For Life 
My Commission Expires:
upon my death

SCHEDULE 1 to
Lease Supplement No. 4

CASUALTY VALUES DURING SELECTED RENEWAL TERM 

	
				
	RENT PAYMENT DATE
	CASUALTY VALUE
	RENT PAYMENT DATE
	CASUALTY VALUE

	January 15, 2016
	$47,821,429 
	July 15, 2026
	$28,321,429 

	July 15, 2016
	$46,892,857 
	January 15, 2027
	$27,392,857 

	January 15, 2017
	$45,964,286 
	July 15, 2027
	$26,464,286 

	July 15, 2017
	$45,035,714 
	January 15, 2028
	$25,535,714 

	January 15, 2018
	$44,107,143 
	July 15, 2028
	$24,607,143 

	July 15, 2018
	$43,178,571 
	January 15, 2029
	$23,678,571

	January 15, 2019
	$42,250,000 
	July 15, 2029
	$22,750,000 

	July 15, 2019
	$41,321,429 
	January 15, 2030
	$21,821,429 

	January 15, 2020
	$40,392,857 
	July 15, 2030
	$20,892,857 

	July 15, 2020
	$39,464,286 
	January 15, 2031`
	$19,964,286 

	January 15, 2021
	$38,535,714 
	July 15, 2031
	$19,035,714 

	July 15, 2021
	$37,607,143 
	January 15, 2032
	$18,107,143 

	January 15, 2022
	$36,678,571 
	July 15, 2032
	$17,178,571 

	July 15, 2022
	$35,750,000 
	January 15, 2033
	$16,250,000 

	January 15, 2023
	$34,821,429 
	July 15, 2033
	$15,321,429 

	July 15, 2023
	$33,892,857
	January 15, 2034
	$14,392,857 

	January 15, 2024
	$32,964,286 
	July 15, 2034
	$13,464,286 

	July 15, 2024
	$32,035,714
	January 15, 2035
	$12,535,714 

	January 15, 2025
	$31,107,143 
	July 15, 2035
	$11,607,143 

	July 15, 2025
	$30,178,571 
	January 15, 2036
	$10,678,571 

	January 15, 2026
	$29,250,000 
	July 15, 2036
	$ 9,750,000Exhibit

Exhibit 10(b)16
Unit Power Sales Agreement
THIS AGREEMENT, made, entered into, and effective as of this 10th day of June, 1982, as amended from time to time thereafter, and as revised to comply with Federal Energy Regulatory Commission (“FERC”) Opinion Nos. 446 and 446-A and FERC Order No.614, between and among Entergy Arkansas, Inc. (“EAI”), Entergy Louisiana, Inc. (“ELI”), Entergy Mississippi, Inc. (“EMI”), Entergy New Orleans, Inc. (“ENOI”) and System Energy Resources, Inc. (“System Energy”),
WITNESSETH THAT:
WHEREAS, System Energy was incorporated on February 11, 1974 under the laws of the State of Arkansas to own certain future generating capacity for the Entergy System, of which EAI, ELI, EMI and ENOI (“System Companies”) are members; and
WHEREAS, System Energy has accordingly undertaken the ownership and financing of an undivided interest in, and construction of, the Grand Gulf Generating Station, a one-unit, nuclear-fueled electric generating station on the east bank of the Mississippi River near Port Gibson, Mississippi (“Project”); and
WHEREAS, the System Companies own and operate electric generating, transmission and distribution facilities in Arkansas, Louisiana and Mississippi and generate, transmit and sell electric energy both at retail and wholesale in such states; and
WHEREAS, System Energy has agreed to sell to EAI, ELI, EMI and ENOI (“Purchasers”) specified percentages of all of the capacity and energy available to System Energy from the Project, and the System Companies have agreed to join with System Energy, before the date Unit 1 of the Project is placed in service, in executing an agreement which will set forth in detail the terms and conditions for the sale of such capacity and energy by System Energy to the System Companies; and
WHEREAS, Unit 1 is expected to be placed in commercial operation in the first quarter of 1983;
NOW, THEREFORE, System Energy and the System Companies mutually understand and agree as follows:
1.System Energy shall, subject to the terms and conditions of this Agreement, make available, or cause to be made available, to the Purchasers all of the capacity and energy which shall be available to System Energy at the Project, including test energy produced during the course of the construction and testing of Unit 1 of the Project (“Power”).
2.The Purchasers shall, subject to the terms and conditions of this Agreement, be entitled to receive all of the Power which shall be available to System Energy at the Project in accordance with their respective Entitlement Percentages.  The Entitlement Percentages are as follows:
	
		
	 
	Entitlement Percentages

	 
	Unit No. 1

	EAI
	36%

	ELI
	14%

	EMI
	33%

	ENOI
	17%

	 
	100%

3.Commencing with the earlier of (a) the date of commercial operation of the Unit or (b) December 31, 1984 and continuing monthly thereafter until this Agreement is terminated pursuant to the provisions of Section 9 hereof, in consideration of the right to receive its Entitlement Percentage of such Power from the unit, each Purchaser will pay System Energy an amount determined pursuant to the Monthly Grand Gulf Power Charge Formula, which is attached hereto as Appendix 1.
1.The performance of the obligations of System Energy hereunder shall be subject to the receipt and continued effectiveness of all authorizations of governmental regulatory authorities at the time necessary to permit System Energy to perform its duties and obligations hereunder, including the receipt and continued effectiveness of all authorizations by governmental regulatory authorities at the time necessary to permit the completion by System Energy of the construction of the Project, the operation of the Project, and for System Energy to make available to the Purchasers all of the Power available to System Energy at the Project.  System Energy shall use its best efforts to secure and maintain all such authorizations by governmental regulatory authorities.
2.System Energy shall operate and maintain the Project in accordance with good utility practice.  Outages for inspection, maintenance, refueling, repairs and replacements shall be scheduled in accordance with good utility practice and, insofar as practicable, shall be mutually agreed to by System Energy and the Purchasers.
3.Delivery of Power sold to the Purchasers pursuant to this Agreement shall occur at the Project’s step-up transformer and shall be made in the form of three-phase, sixty hertz alternating current at a nominal voltage of 500 kilovolts.  System Energy will supply and maintain all necessary metering equipment for determining the quantity and conditions of delivery under this Agreement.  System Energy will furnish to the Purchasers such summaries of meter reading and other metering information as may reasonably be requested.
4.Monthly bills shall be calculated in accordance with the provisions of the Monthly Grand Gulf Power Charge Formula, attached hereto as Appendix 1.
5.Nothing contained herein shall be construed as affecting in any way the right of System Energy to unilaterally make application to FERC for a change in the rates contained herein or any other term or condition of this Agreement under Section 205 of the Federal Power Act and pursuant to FERC Rules and Regulations promulgated thereunder.
6.No Purchaser shall be entitled to set off against any payment required to be made by it under this Agreement (a) any amounts owed by System Energy to any Purchaser or (b) the amount of any claim by any Purchaser against System Energy.  The foregoing, however, shall not affect in any other way the rights and remedies of any Purchaser with respect to any such amounts owed to any Purchaser by System Energy or any such claim by any Purchaser against System Energy.
7.The invalidity and unenforceability of any provision of this Agreement shall not affect the remaining provisions hereof.
8.This Agreement shall continue until terminated by mutual agreement of all parties hereto.
9.This Agreement shall be binding upon the parties hereto and their successors and assigns, but no assignment hereof, or of any right to any funds due or to become due under this Agreement, shall in any event relieve either any Purchaser or System Energy of any of their respective obligations hereunder, or, in the case of the Purchasers, reduce to any extent their entitlement to receive all of the Power available to System Energy from time to time at the Project.  
10.The agreements herein set forth have been made for the benefit of the Purchasers and System Energy and their respective successors and assigns and no other person shall acquire or have any right under or by virtue of this Agreement.
11.The Purchasers and System Energy may, subject to the provisions of this Agreement, enter into a further agreement or agreements between the Purchasers and System Energy, setting forth detailed terms and provisions relating to the performance by the Purchasers and System Energy of their respective 

obligations under this Agreement.  No agreement entered into under this Section 12 shall, however, alter to any substantive degree the obligations of any party to this Agreement in any manner inconsistent with any of the foregoing sections of this Agreement.
12.Each of the Purchasers shall, at any time and from time to time, be entitled to assign all of its right, title and interest in and to all of the power to which any of them shall be entitled under this Agreement, but no Purchaser shall, by such assignment, be relieved of any of its obligations and duties under this Agreement except through the payment to System Energy, by or on behalf of such Purchaser, of the amount or amounts which such Purchaser shall be obligated to pay pursuant to the terms of this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the day and year first above written
	
	
	SYSTEM ENERGY RESOURCES, INC., formerly MIDDLE SOUTH ENERGY, INC.
By:/S/F W. Lewis

	ENTERGY ARKANSAS, INC., formerly 
ARKANSAS POWER & LIGHT COMPANY

By:/S/Jerry Maulden

	ENTERGY LOUISIANA, INC., formerly 
LOUISIANA POWER & LIGHT COMPANY

By:/S/J. Wyatt

	ENTERGY MISSISSIPPI, INC., formerly 
MISSISSIPPI POWER & LIGHT COMPANY

By:/S/D. C. Lutkin

	ENTERGY NEW ORLEANS, INC., formerly 
NEW ORLEANS PUBLIC SERVICE INC.

By:/S/James M. Cain

Appendix 1
Page 1 of 3

	
	
	SYSTEM ENERGY RESOURCES, INC. 
MONTHLY GRAND GULF POWER CHARGE FORMULA

		
	1.
	GENERAL

This Grand Gulf Power Charge Formula (“PCF”) sets out the procedures that shall be used to determine the monthly amounts which System Energy Resources, Inc. (“SERI”) shall charge Entergy Arkansas, Inc. (“EAI”); Entergy Louisiana, Inc. (“ELI”); Entergy Mississippi, Inc. (“EMI”); and Entergy New Orleans, Inc. (“ENOI”) (referred to hereafter, collectively, as “Purchasers”, or, individually, as “Purchaser”), for capacity and energy from the Grand Gulf Nuclear Station (“Grand Gulf”) pursuant to the Unit Power Sales Agreement (“UPSA”) between SERI and the Purchasers to which this document is attached as Appendix 1.  The monthly charges for capacity (“Monthly Capacity Charges”) shall be determined in accordance with the provisions of Section 2 below.  The monthly charges for fuel (“Monthly Fuel Charges”) shall be determined in accordance with the provisions of Section 3 below.  The Monthly Capacity Charges and the Monthly Fuel Charges determined in accordance with the provisions of this PCF shall be billed to the Purchasers monthly in accordance with the provisions of Section 4 below.

		
	2.
	MONTHLY CAPACITY CHARGE

The Monthly Capacity Charge to be billed to each of the Purchasers for any service month shall be determined by applying the Monthly Capacity Charge Formula set out in Attachment A to the applicable cost data.

		
	3.
	MONTHLY FUEL CHARGE

The Monthly Fuel Charge to be billed to each of the Purchasers for any service month shall be determined by applying the Monthly Fuel Charge Formula set out in Attachment B to fuel cost data for the service month.

		
	4.
	BILLING

On or before the fifth workday of each month SERI shall render a billing to each of the Purchasers reflecting the Purchaser’s Monthly Capacity Charge and Monthly Fuel Charge for the immediately preceding service month.  In addition, any applicable and appropriate adjustments shall be reflected in each of the monthly billings.  The monthly billings shall be payable in immediately available funds on or before the 15th day of such month.  After the 15th day of such month, interest shall accrue on any balance due to SERI, or owed by SERI, at the rate required for refunds rendered pursuant to the requirements of Section 35.19.a of the Code of Federal Regulations.  Entergy Services Inc., acting as agent for SERI and the Purchasers, may prepare the necessary billings to the Purchasers and arrange for payment in accordance with the above requirements.

		
	5.
	EFFECTIVE DATE AND TERM

This PCF shall be effective for service rendered on and after December 12, 1995 and shall continue in effect until modified or terminated in accordance with the provisions of this PCF or applicable regulations or laws.

Attachment A
Page 1 of 5
	
				
	SYSTEM ENERGY RESOURCES, INC. 
MONTHLY CAPACITY CHARGE FORMULA
DETERMINATION OF MONTHLY CAPACITY CHARGES 
MONTH, XXXX

	Line No
	DESCRIPTION
	AMOUNT
	REFERENCE/SOURCE

	 
	CAPACITY REVENUE REQUIREMENT
	 
	Page 3, Line 1

	 
	CREDIT, PER STIPULATION AND AGREEMENT IN DOCKET NO. FA89-28
	 
	SERI Rate Schedule FERC No. 6

	 
	ADJUSTED CAPACITY REVENUE REQUIREMENT
	 
	Line 1 - Line 2

	 
	MONTHLY CAPACITY CHARGE FOR EAI
	 
	36% * Line 3

	 
	MONTHLY CAPACITY CHARGE FOR ELI
	 
	14% * Line 3

	 
	MONTHLY CAPACITY CHARGE FOR EMI
	 
	33% * Line 3

	 
	MONTHLY CAPACITY CHARGE FOR ENOI
	 
	17% * Line 3

Attachment A
Page 2 of 5

	
				
	SYSTEM ENERGY RESOURCES, INC. 
MONTHLY CAPACITY CHARGE FORMULA
DEVELOPMENT OF RATE BASE (1) 
MONTH, XXXX

	Line No
	DESCRIPTION
	AMOUNT
	REFERENCE/SOURCE

	 
	PLANT IN SERVICE
	 
	FERC Accounts 101, 106

	 
	ACCUMULATED DEPRECIATION & AMORTIZATION
	 
	FERC Accounts 108, 111 (2)

	 
	NET UTILITY PLANT
	 
	Line 1 Plus Line 2

	 
	NUCLEAR FUEL
	 
	FERC Accounts 120.2-120.4

	 
	AMORTIZATION OF NUCLEAR FUEL
	 
	FERC Account 120.5

	 
	MATERIALS & SUPPLIES
	 
	FERC Accounts 154, 163

	 
	PREPAYMENTS
	 
	FERC Account 165

	 
	DEFERRED REFUELING OUTAGE COSTS
	 
	FERC Account 182.3

	 
	ACCUMULATED DEFERRED INCOME TAXES
	 
	FERC Accounts 190, 281, 282, 283

	 
	RATE BASE
	 
	Sum of Lines 3 - 9

	 
	 
	 
	 

	
		
	NOTES:

	(1)
	TO BE DETERMINED BASED ON DATA AS OF THE END OF THE MONTH IMMEDIATELY PRECEDING THE CURRENT SERVICE MONTH.

	(2)
	THE BALANCE FOR ACCUMULATED DEPRECIATION AND AMORTIZATION IS TO BE REDUCED BY ANY DECOMMISSIONING RESERVE AND RESERVE FOR DISPOSAL OF NUCLEAR FUEL INCLUDED IN FERC ACCOUNTS 108 AND 111 WHICH REPRESENT MONIES HELD BY THIRD PARTIES.

Attachment A
Page 3 of 5
	
				
	SYSTEM ENERGY RESOURCES, INC. 
MONTHLY CAPACITY CHARGE FORMULA 
DEVELOPMENT OF CAPACITY REVENUE REQUIREMENT (1) 
MONTH, XXXX

	Line No
	DESCRIPTION
	AMOUNT
	REFERENCE/SOURCE

	 
	 
	 
	 

	 
	CAPACITY REVENUE REQUIREMENT
	 
	Determined as described in Note 2 below.

	 
	OPERATION & MAINTENANCE EXPENSE (3)
	 
	FERC Accounts 517, 519-525, 528-532, 556, 557, 560-573, 901-905, 920-931, 935

	 
	DEPRECIATION EXPENSE
	 
	FERC Account 403-Excluding Decommissioning Exp

	 
	DECOMMISSIONING EXPENSE (4)
	 
	FERC Account 403-Decommissioning Expense

	 
	AMORTIZATION EXPENSE
	 
	FERC Accounts 404, 407.3, 407.4

	 
	TAXES OTHER THAN INCOME TAXES
	 
	FERC Account 408.1

	 
	CURRENT STATE INCOME TAX
	 
	Page 4, Line 18

	 
	CURRENT FEDERAL INCOME TAX
	 
	Page 4, Line 25

	 
	PROVISION FOR DEFERRED INCOME TAX-STATE
	 
	State Portion of FERC Accounts 410.1, 411.1 (5)

	 
	PROVISION FOR DEFERRED INCOME TAX-FEDERAL
	 
	Federal Portion of FERC Accounts 410.1, 411.1 (5)

	 
	INVESTMENT TAX CREDIT-NET
	 
	FERC Account 411.4

	 
	GAINS/LOSSES ON DISPOSITION OF UTILITY PLANT
	 
	FERC Accounts 411.6, 411.7

	 
	UTILITY OPERATING EXPENSES
	 
	Sum of Lines 2 - 12

	 
	 
	 
	 

	 
	UTILITY OPERATING INCOME
	 
	Line 1 minus Line 13

	 
	VERIFICATION:
	 
	 

	 
	RATE BASE
	 
	Page 2, Line 10

	 
	RATE OF RETURN ON RATE BASE
	 
	12*(Line 14 / Line 16)(Must equal Line 18)

	 
	 
	 
	 

	 
	COST OF CAPITAL
	 
	Weighted Cost Rate from Page 5, Line 6

	
		
	NOTES:

	1)
	ALL EXPENSES ARE TO BE THOSE FOR THE CURRENT SERVICE MONTH.

	 
	 

	2)
	THE CAPACITY REVENUE REQUIREMENT FOR THE SERVICE MONTH IS THE VALUE THAT RESULTS IN A UTILITY OPERATING INCOME WHICH, WHEN DIVIDED BY THE RATE BASE (DETERMINED IN ACCORDANCE WITH PAGE 2) AND MULTIPLIED BY 12 PRODUCES A RATE OF RETURN ON RATE BASE EQUAL TO THE COST OF CAPITAL (DETERMINED IN ACCORDANCE WITH PAGE 5).

	 
	 

	3)
	EXCLUSIVE OF FUEL EXPENSE IN FERC ACCOUNT 518.

	 
	 

	4)
	SHOULD THE FERC APPROVE A CHANGE IN SYSTEM ENERGY’S SCHEDULE OF ANNUAL DECOMMISSIONING EXPENSES DURING THE SERVICE MONTH, THE MONTHLY LEVEL IN EFFECT AS OF THE END OF THE MONTH SHALL BE UTILIZED. OTHERWISE, THE AMOUNT CHARGED TO FERC ACCOUNT 403 FOR THE SERVICE MONTH SHALL BE UTILIZED, AS SHOWN ON ATTACHMENT C.

	 
	 

	5)
	RESTRICTED TO THOSE ITEMS FOR WHICH CORRESPONDING TIMING DIFFERENCES ARE INCLUDED IN THE ADJUSTMENTS TO NET INCOME BEFORE INCOME TAX (SEE PAGE 4, LINE 10).

Attachment A
Page 4 of 5

	
				
	SYSTEM ENERGY RESOURCES, INC. 
MONTHLY CAPACITY CHARGE FORMULA 
DEVELOPMENT OF CURRENT INCOME TAX EXPENSE 
MONTH, XXXX

	Line No
	DESCRIPTION
	AMOUNT
	REFERENCE/SOURCE

	 
	 
	 
	 

	 
	CAPACITY REVENUE REQUIREMENT
	 
	Page 3, Line 1

	 
	OPERATION & MAINTENANCE EXPENSE
	 
	Page 3, Line 2

	 
	DEPRECIATION EXPENSE
	 
	Page 3, Line 3

	 
	DECOMMISSIONING EXPENSE
	 
	Page 3, Line 4

	 
	AMORTIZATION EXPENSE
	 
	Page 3, Line 5

	 
	TAXES OTHER THAN INCOME
	 
	Page 3, Line 6

	 
	NET INCOME BEFORE INCOME TAXES
	 
	Line 1 - (Sum of Lines 2-6)

	 
	ADJUSTMENTS TO NET INCOME BEFORE INCOME TAX:
	 
	 

	 
	INTEREST SYNCHRONIZATION
	 
	Rate Base (Page 2, Line 10) * (-1) * Total Debt Rate 
(Page 5, Line 4)/12

	 
	OTHER ADJUSTMENTS
	 
	See Note 1

	 
	TOTAL ADJUSTMENTS
	 
	Line 9 plus Line 10

	 
	TAXABLE INCOME
	 
	Line 7 plus Line 11

	 
	COMPUTATION OF STATE INCOME TAX
	 
	 

	 
	STATE TAXABLE INCOME BEFORE ADJUSTMENTS
	 
	Line 12

	 
	NET ADJUSTMENT TO STATE TAXABLE INCOME
	 
	See Note 1

	 
	STATE TAXABLE INCOME
	 
	Line 13 plus Line 14

	 
	STATE INCOME TAX BEFORE ADJUSTMENTS
	 
	Line 15 * Mississippi State Tax Rate(2)

	 
	ADJUSTMENTS TO STATE TAX
	 
	See Note 1

	 
	CURRENT STATE INCOME TAX
	 
	Sum of Lines 16 - 17

	 
	 
	 
	 

	 
	COMPUTATION OF FEDERAL INCOME TAX
	 
	 

	 
	FEDERAL TAXABLE INCOME BEFORE ADJUSTMENTS
	 
	Line 12

	 
	CURRENT STATE INCOME TAX DEDUCTION
	 
	Line 18 (Shown as deduction)

	 
	OTHER ADJUSTMENTS TO FEDERAL TAXABLE INCOME
	 
	See Note 1

	 
	FEDERAL TAXABLE INCOME
	 
	Sum of Lines 19-21

	 
	FEDERAL INCOME TAX BEFORE ADJUSTMENTS
	 
	Line 22 * Federal Tax Rate(2)

	 
	ADJUSTMENTS TO FEDERAL TAX
	 
	See Note 1

	 
	CURRENT FEDERAL INCOME TAX
	 
	Sum of Lines 23 - 24

	
		
	NOTES:

	1)
	ITEMS FROM MONTHLY TAX DETERMINATION THAT ARE APPROPRIATE FOR RATEMAKING PURPOSES.

	2)
	RATE IN EFFECT AT THE END OF THE SERVICE MONTH.

Attachment A
Page 5 of 5

	
						
	SYSTEM ENERGY RESOURCES, INC.
MONTHLY CAPACITY CHARGE FORMULA
DEVELOPMENT OF COST OF CAPITAL (1) 
MONTH, XXXX

	LINE NO
	CAPITAL SOURCE
	CAPITAL AMOUNT (2)(3)
	CAPITALIZATION RATIO (4)
	COST RATE
	WEIGHTED
COST RATE (8)

	 
	DEBT
	 
	 
	 
	 

	 
	LONG TERM
	FERC Accts 221, 224, 225, 226, 181, 189
	 
	(5)
	 

	 
	SHORT TERM
	 
	 
	(6)
	 

	 
	TOTAL TERM
	 
	 
	(7)
	 

	 
	COMMON EQUITY
	FERC Accts 201, 208, 216
	 
	(SEE NOTE 9)
	 

	 
	TOTAL
	 
	 
	NA
	 

	
		
	NOTES:

	(1)
	TO BE DETERMINED BASED ON DATA AS OF THE END OF THE MONTH IMMEDIATELY PRECEDING THE CURRENT SERVICE MONTH.

	(2)
	LONG TERM DEBT SHALL INCLUDE ALL ISSUES AND REFLECT THE PRINCIPAL AMOUNT.

	(3)
	SHORT TERM DEBT SHALL INCLUDE ONLY THAT PORTION NOT REFLECTED IN THE CALCULATION OF SERI’S RATE FOR ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION.

	(4)
	APPLICABLE CAPITAL AMOUNT DIVIDED BY THE TOTAL CAPITAL AMOUNT.

	(5)
	AVERAGE COST RATE FOR ALL OUTSTANDING ISSUES INCLUDING APPLICABLE AMORTIZATION OF DEBT DISCOUNT, PREMIUM, AND EXPENSE TOGETHER WITH AMORTIZATION OF LOSS OR GAIN ON REACQUIRED DEBT.

	(6)
	THE AVERAGE COST RATE FOR ELIGIBLE SHORT TERM DEBT.

	(7)
	WEIGHTED AVERAGE COST RATE FOR LONG TERM DEBT AND SHORT TERM DEBT.

	(8)
	CAPITALIZATION RATIO FOR THE APPLICABLE CAPITAL SOURCE MULTIPLIED BY THE CORRESPONDING COST RATE.

	(9)
	THE COMMON EQUITY COST RATE SHALL BE AS FOLLOWS:

	 
	A.FOR SERVICE FROM DECEMBER 12, 1995 THROUGH JULY 30, 2000 THE RATE SHALL BE 10.58%.

	 
	B.FOR SERVICE AFTER JULY 30, 2000 THE RATE SHALL BE 10.94%.

Attachment B
Page 1 of 1
	
				
	SYSTEM ENERGY RESOURCES, INC.
MONTHLY FUEL CHARGE FORMULA
MONTH, XXXX

	Line No
	DESCRIPTION
	AMOUNT
	REFERENCE/SOURCE

	 
	 
	 
	 

	 
	FUEL EXPENSE FOR APPLICABLE SERVICE MONTH
	 
	FERC Account 518 

	 
	MONTHLY FUEL CHARGE FOR EAI
	 
	36% * Line 1 

	 
	MONTHLY FUEL CHARGE FOR ELI
	 
	14% * Line 1 

	 
	MONTHLY FUEL CHARGE FOR EMI
	 
	33% * Line 1 

	 
	MONTHLY FUEL CHARGE FOR ENOI
	 
	17% * Line 1

	 
	 
	 
	 

Attachment C
Page 1 of 1
	
					
	System Energy Resources, Inc. 
Grand Gulf Decommissioning Model 
Revenue Requirements Summary 
($000)

	 
	 
	Revenue Requirements

	Line
No
	Year
	Owned
Portion
	Leased
Portion
	Total

	1
	1995
	6,813
	1,208
	8,021

	2
	1996
	11,195
	1,997
	13,192

	3
	1997
	11,195
	1,997
	13,192

	4
	1998
	11,195
	1,997
	13,192

	5
	1999
	11,195
	1,997
	13,192

	6
	2000
	11,195
	1,997
	13,192

	7
	2001
	13,624
	2,431
	16,055

	8
	2002
	13,624
	2,431
	16,055

	9
	2003
	13,624
	2,431
	16,055

	10
	2004
	13,624
	2,431
	16,055

	11
	2005
	13,624
	2,431
	16,055

	12
	2006
	16,590
	2,960
	19,550

	13
	2007
	16,590
	2,960
	19,550

	14
	2008
	16,590
	2,960
	19,550

	15
	2009
	16,590
	2,960
	19,550

	16
	2010
	16,590
	2,960
	19,550

	17
	2011
	20,184
	3,601
	23,785

	18
	2012
	20,184
	3,601
	23,785

	19
	2013
	20,184
	3,601
	23,785

	20
	2014
	20,184
	3,601
	23,785

	21
	2015
	20,184
	2,101
	22,285

	22
	2016
	24,550
	0
	24,550

	23
	2017
	24,550
	0
	24,550

	24
	2018
	24,550
	0
	24,550

	25
	2019
	24,550
	0
	24,550

	26
	2020
	24,550
	0
	24,550

	27
	2021
	29,878
	0
	29,878

	28
	2022
	17,429
	0
	17,429

	29
	2023
	0
	0
	0

	30
	2024
	0
	0
	0

	31
	2025
	0
	0
	0

	32
	2026
	0
	0
	0

	33
	2027
	0
	0
	0

	34
	2028
	0
	0
	0

	35
	2029
	0
	0
	0

	36
	2030
	0
	0
	0

	37
	2031
	0
	0
	0

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00267-of-00352.parquet"}]]