THIS FILING IS - em I : An Initial (Original) OR 0 Resubmission No.-

Submission I

‘t8 CFR 141.1 and 141.400. Failure to repart may result In criminal fines, civil penalties and other sanctlons as pmvfded by law. The Federal Energy Regulatory Comrnlsslon does not wnsfder these reports to be of confidential nature

Form 1 Approved

(Expires 121311201 1) Form j-F Approved

(Expires 121311201 I) Form 3-Q Approved OMB No. 1902-0205 (Expires 113112012)

OMB NO. 1902-0021

OMB NO. 1902-0029

Exact Legal Name of Respondent (Company) En tergy Arkansas, lnc. -

RECEMB

YearlPeriod of Report End of 200816314

ARK PUBlk SERVICE COMM AUDIT SECTION

FERC FINANCIAL REPORT FERC FORM No. I: Annual Report of

Major Electric Utilities, Licensees and Others and Supplemental

Form 3-Q: Quarterly Financial Report

Deloitte. Deloitte &Touche UP Sulte 4200 701 Poydras Strcet New Orteanr, tA7013942W USA

Tel: +I 504 581 2727 Fax: +t 504 561 7293 www.detoitte.com

INDEPENDENT AUDITORS’ REPORT

Enrergy Arkansas, Inc. tittle Rock, Arkansas

We have audited the balance sheet - regulatory basis of Entergy Arkansas, Inc. (the “Company”) as of December 3 1,2008, and the related statements of income - regulatory basis; retained earnings - regulatory basis; and cash flows - regulatory basis for the year ended December 31, 2008, included on pages 1 10 through 123 of the accompanying Federal Energy Regulatory Commission Form 1. These financial statements are the responsibility of the Company’s management. Our responsibiIity is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards as estabiished by the Auditing Standards Board (United States) and in accordance with the auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable a~sumnce about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disdosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation, We believe that our audit provides a reasonable basis for our opinion.

As discussed in Note B, these financial statements were prepared in accordance with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases, which is a comprehensive basis of accounting ofher than accounting principles generally accepted in the United States of America

In our opinion, such regulatory-basis financial statements present fairly, in all material respects, the assets, liabilities, and proprietary capital of Entergy Arkansas, hc. as of December 3 I , 2008, and the resuIts of its operations and its cash flows for the year ended December 3 1,2008, in accordance with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and pubIished accounting releases.

Mem bcr of Delolite Touche Tohmatsu

This report is intended solely for the information and use o f the board of directors and management of Entergy Arkansas, Inc. and for filing with the Federal Energy Regulatory Commission and is not intended to be and should not be used by anyone other than these specified parties.

February 27,2009

I

* -

I

INSTRUCTiONS FOR FILING FERC FORM NOS. 1 and 3 4

GENERAL INFORMATION

1. Purpose

FERC Form No. I (FERC Form 1) is an annual regulatory requirement for Major electric utilities, licensees and others (I 8 C.F.R. 3 141 -1). FERC Form No. 3-Q ( FERC Form 3-Q)is a quarterly regulatory requirement which supplements the annual financial reporting requirement (1 8 C.F.R. 5 141.400). These reports are designed to collect financial and operational information from electric utilities, licensees and others subject to the jurisdiction of the Federal Energy Regulatory Commission. These reports are also considered to be non-confidenfial public use forms.

II. Who Must Submit

Each Major electric utility, licensee, or other, as classified in the Commission's Uniform System of Accounts Prescribed for Public Utilities and Licensees Subject To the Provisions of The Federal Power Act (1 8 C.F.R. Part 101 ), must submit FERC Form 1 ( I8 C.F.R. 5 141.1), and FERC Form 3-Q (18 C.F.R. 5 441.400).

Note: Major means having, in each of the three previous calendar years, sales or transmission service that exceeds one of the following:

(1) one million megawan hours of total annual sales, (2) A00 megawatt hours of annual sales for resale, (3) 500 megawatt hours of annual power exchanges delivered, or (4) 500 megawatt hours of annual wheeting for others (deliveries plus losses).

111. What and Where to Submit

(a) Submit FERC Forms 1 and 3-Q etectronically tfirough the forms submission software. Retain one copy of each report for your files. Any electronic submission must be mated by using the forms subrnisslon sofhwre provided free by the Commbsion at its web site: http://~.ferc.qov/docs-fiIinq/eformslform-I l ek - su bm-soilasp. The soffware is used to submit the electronic filing to the Commission via the Internet.

(b) The Corporate Officer Certification must be submitted electronically as part of the FERC Forms 1 and 3-Q filings.

(c) Submit Immediately upon publication, by either emling or mail, two (2) copies to the Secretary of the Commission, the latest Annual Report to Stockhojders. Unless eFiling the Annual Report to Stockholders, mail the stockholders repoFt to the Secretary of the Commission at:

Secretary Federal Energy Regulatory Commission 888 First Street, NE Washington, DC 20426

(dl applicable to fkrs classified as Class C or Class D prior to January 1, 1984). The CPA Certification Statement can be either eFiled or mailed to the Secretary of the Commission at the address above.

For h e CPA Certification Statement, submit within 30 days a&r filing the FERC Form 1, a letter or report (not

FERC FORM 'I 8 3-Q (ED. 03-07) i

The CPA Certification Statement should:

a) Attesf to the conformity, in all materia1 aspects, of the below listed (schedules and pages) with the Commission's applicable Uniform System of Accounts (including applicable notes relating hereto and the Chief Accountant's published accounting releases), and

b) Be signed by independent certified public accountants or an independent licensed public accountant certified or licensed by a regulatory authon'ty of a Sate or other political subdivision of the U. S. (See 18 C.F.R. 85 41 .IO41 -12 for specific qualifications.)

Reference Schedules Paqes

Comparative Balance Sheet 110-113 Statement of Income 114-117 Statement of Retained Earnings 1i8-I19 Statement of Cash Flows 120-121 Notes to Financial Statements 122-123

e) 7he following format must be used for the CPA Certification Statement unless unusual circumstances OF conditions, explained in the fetter OF report, demand that it be varied. Insert parenthetical phrases only when exceptions are reported.

'In connection with our regular examination of the financial stafements of for h e year ended on which we have reported separately under date of

conformity in all material respects with the requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounts and published accounting releases. Our review for this purpose included such' tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

(except as noted below) conform in a11 material respects with the accounting requirements of the Federal Energy Regulatory Commission as set forth in its applicable Uniform System of Accounfs and published accounting releases."

, we have also reviewed schedules of FERC Form No. 1 for the year filed with me Federal Energy Regulatory Commission, for

Based on our review, in our opinion the accompanying schedules identified in the preceding paragraph

The letter or report must state which, if any, of the pages above do not conform to the Commission's requirements. Describe the discrepancies that exist.

(f) Filers are encouraged to file their Annual Report to Stockhdders, and the CPA Certification Statement using efiling. To further that effort, new selections, "Annual Report to Stockholders," and "CPA Certification Sfatemenr have been added fo the dropdown 'pick lisp from which companies must choose when eFiling. Further instructions are found on the Commission's website at hff p:/lwww.ferc.qov/helplhow-to.asp.

(SI FERC Form 1 and 3-Q free of charge from ht te : / /www. ferc .qov /~o~-~ l~~~ /~ fo~s~fo~-~I form-? .pdf and http:/lwww.ferc.qovldocs-fiIinaleforms. asp#Q-qas .

Federal, State and L o d Governments and other authorized users may obtain additional blank copies of

1V. When to Submit:

FERC Foms 1 and 3-Q must be filed by the following schedule:

FERC FORM 1 & 3-Q (ED. 03-07} i i

a) FERC Form 1 for each year ending December 31 must be filed by April 18' of the following year (18 CFR 5 141.1), and b) FERC Form 3-GI for each wlendar quarter must be filed within 60 days after the reporting quarter (18 C.F.R. 5 141.400).

V. Where to Send Comments on Public Reporting Burden.

The public reporting burden for the FERC Form 1 collection of information is estimated to average 1,144 hours per response, including the time for reviewing instructions, searching existing data sources, gathedng and maintaining the dabneeded, and completing and reviewing the collection of information. The public reporting burden for the FERC Form 3.Q cotlection of information is estimated to average 150 hours per response.

Send comments regarding these burden estimates or any aspect of these collections of information, including suggestions for reducing burden, to the Federal Energy Regulatory Commission, 888 First Street NE, Washington, DC 20426 (Aftention: Infomation Clearance Officer); and to the Office of Information and Regulatory Affairs, Office of Management and Budget, Washington, DC 20503 (Atkention: Desk Officer for the Federal Energy Regulatory Commission). No person shall be subject to any penalty if any collection of information does not display a valid controI number (44 U.S.C. Q 3512 (a)).

FERC FORM 1 & 3-Q (ED. 03-07) i i i

GENERAL INSTRUCTIONS

1. alt accounting words and phrases in accordance with the USofA.

Prepare this report in conformitywith h e Uniform System of Accounts (18 CFR Part 101) (USofA). Interpret

II. Enter in whole numbers (dollars or MWH) only, except where othewke noted. (Enter cents for averages and figures per unit where cents are important. The truncating of cents is allowed except on the four basic financial statements where rounding is required.) The amounts shown on all supporting pages must agree with the amounts entered on the statements that they support When applying thresholds to determine signifiwnce for reporting purposes, use for balance sheet accounts the balances at the end of the current reporting period, and use for statement of income accounts the current year's year to date amounts.

Ill word "None" where it truly and completely states the fact.

Complete each question fully and accurately, even if it has been answered in a previous report. Enter the

IV. Applicable" in column (d) on the List of Schedules, pages 2 and 3.

For any page(s) that is not applicable to the respondent, omit the page(s) and enter "NA," "NONE," or "Not

V. Enter the month, day, and year for all dates. Use customary abbreviations. The "Date of Report" included in the header of each page is to be completed only for resubmissions (see Vll. below).

VI. Generally, except for certain schedules, all numbers, whether they are expected to be debits or credits, must be reported as positive. Numbers having a sign that is different from the expected sign must be reported by enclosing the numbers in parentheses.

VI I the reason for the resubmission in a footnote to the data field.

For any resubmissions, submit the electronic filing using the form submission software only. Please explain

VIII. except as specifiwlly authorized.

Do not make references to reporfs of previous peridslyears or to other reports in lieu of required entries,

IX. upon those shown by the report of the previous periocl&ear, or an appropriate explanation given as to why the different figures were used.

Wherever (schedule) pages refer €0 figures from a previous periodyear, the figures reported must be based

Definitions for statistid classifications used for completing schedules for transmission system reporting are as follows:

FNS - Firm Network Transmission Service fo; Self. "Firm" means senrice that can not be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. "Network Sem'ce" is Network Transmission Service as described in Order No. 888 and the Open Access Transmission Tariff. "SelP means the respondent.

FNO - Firm Network Service for Others. "Firm" means thal service cannot be intempted for economic reasons and is intended to remain reliable even under adverse conditions. "Network Service" is Network Tmnsmission Service as described in Order No. 888 and the Open Access Transmission Tariff.

LFP -for Long-Term Firm Point-to-Point Transmission Reservations. "Long-Term" means one year or longer and" firm" means that service cannot be intempted for economic reasons and is intended to remain reliable even under adverse conditions. "Point-bPoint Transmission Reservations" ate described in Order No. 888 and the Open Access Transmission Tariff. For all transactions identified as LFP, provide in a footnote the

FERC FORM I d 3-Q (ED. 03-07) IV

termination date of the contract defined as the earliest date either buyer or seller can unilaterally cancel the conhct.

OLF - Other Long-Term firm Transmission Service. Report service provided under contracts which do not conform to the terms of the Open Access Transmission Tariff. "Long-Term" means one year or longer and "firm" means that sewice cannot be interrupted for economic reasons and is intended to remain reliable even under adverse conditions. For all transactions identified as OLF, provide in a footnote the termination date of the contract defined as the earliest date either buyer or seller can unilaterally get out of the contract.

SFP - Short-Term Firm Point-fo-Point Transmission Resenrations. Use this classifiwtion for all firm point-tc-point transmission reservations, where the duration of each period of reservation is less than one-year.

NF - Non-Firm Transmission Service, where firm means #at sewice cannot be intempted for economic reasons and is intended to remain reliable even under adverse conditions.

OS - Other Transmlssion Service. Use this classification only for those services which can not be placed in the above-mentioned classif~catjons, such as all other service regardless of the length of the contract and service FERC Form. Describe the type of service in a footnofe for each entry.

AD - Out-of-Period Adjustments. Use this code for any accounting adjustments or "trueups" for service provided in pn'or repotting periods. Provide an explanation in a footnote for each adjustment.

Commission Authorization (Comm. Auth.) - The authorization of the Federal Energy Regulatory Commission, or any her Commission. Name the commission whose authorimtion was obtained and give date of the autfiorimtion.

II. Respondent - The person, corporation, licensee, agency, authority, or other Legal entity or instrumentality in whose ehalf the report is made. i

FERC FORM 1 81 3-Q (ED. 03-07) V

EXCERPTS FROM THE M W

Federal Power Act, 16 U.S.C. 3 791a-825r

Sec. 3. The words defined in this section shall have the following meanings for purposes of this Act, to with:

(3) 'Corporation' means any corporation, joint-stock company, partnership, association, business trust, organized group of persons, whether incorporated or not, OF a receiver or receivers, trustee or trustees of any of the foregoing. I t shall not include 'municipalities, as hereinafler defined;

(4) 'Person' means an individual or a corporation;

(5) 'Licensee, means any person, State, or municipality Licensed under the provisions of section 4 of h i s Act,

(7) 'municipality means a city, county, irrigation district, drainage district, or other political subdivision or

and any assignee or successor in interest thereof;

agency of a State competent under the Laws thereof to wrry and the business of developing, transmitting, uniWng, or distributing power; ......

(11) project' means. a complete unit of improvement or development, consisting of a power house, all water conduits, all dams and appurtenant works and structures (including navigation stntctures) which are a part of said unit, and all storage, diverting, or fore bay reservoirs directly connected therewith, the pn'rnary tine or lines transmitting power there from to the point of junction with the distribution system or with the interconnected primary transmission system, all miscellaneous structures used and useful in connection with said unit or any part thereof, and all water rights, rights-of-way, ditches, dams, reservoirs, Lands, or interest in Lands the use and occupancy of which are necessary or appropriate in the maintenance and operation of such unit;

"Sec. 4. The Commission Is hereby authorized and empowered

(a) To make investigations and to collect and record data concerning the utilhtion of the water 'resources of any region to be developed, the water-power industry and its relation to other industn'es and to interstate or foreign commerce, and concerning the location, capacity, development -costs, and relation to markets of power sites; ... to the extent the Commission may deem necessary OF useful for the purposes of this Act."

"Sec. 304. (a) Every Llcensee and every public utility shall file with the Commission such annual and other periodic or special* reports as the Commission may be rules and regulations or other prescribe as necessary or appropn'ate to assist the Commission in the -proper administration of this Act. The Commission may prescribe the manner and FERC Form in which such reports salt be made, and require from such persons specific answers to all questions upon which the Commission may need information. The Commission may require that such reports shall include, among other thlngs, full information as to assets and Liabilities, capitahation, net investment, and reduction thereof, gross receipts, interest due and paid, depreciation, and ofher reserves, cost of project and other facilities, cost of maintenance and operation of the project and other facilities, cost of renewals and replacement of the project works and other facilities, depreciation, generation, fransrnission, distribution, delivery, use, and sale of electric energy. The Commission may require any such person to make adequate provision for currently determining such costs and other facts. Such reports shall be made under oath unless the Commission ohenvise specifies*.IO

FERC FORM 1 & 3-42 (ED. 03-07) Vi

"Sec. 309. The Commission shalt have power to perform any and all acts, and to prescribe, issue, make, and rescind such orders, rules and regulations as it may find necessary or appropn'ate to wrry out the provisions of this Act. Among omer things, such rules and regulations may define accounting, technical, and trade terns used in this Act; and may prescribe the FERC Form or FERC Forms of all statements, declarations, applications, and reports to be fired with the Commission, the information which they shalt contain, and the time within which they shall be field ..."

General Penalties

The Commission may assess up to $1 million per day per violation of its rules and regulations. See FPA 5 316(a) (ZOOS), 16 U.S.C. 6 825o(a).

FERC FORM 1 & 3-Q (ED. 03-07) vii

01 Exact Legal Name of Respondent Entergy Arkansas, Inc.

02 YearPeriod of Report End of 20081Q4

ANNUAL CORPORATE OFFICER CERTIFICATION The undersigned officer certifies that:

05 Name of Contact Person Paul J. Ory

I have examined thk report and to the best of my knowledge, Information, and belief all statements of fact mntalned tn thfs report am correct statements of the buslness affairs of the respondent and the financial statements, arrd oher finmela[ infonnatlon contained in thls reporf, conform h dl matedal respects to the Unlform Systorn of Accounts. I

06 Title of Contact Person Director, External Reporting

08 Telephone of Contact PersonJncluding Area Code

E041 576-4482

09 This Report Is 10 Date of Report (Mo, Da, Yr) (1) An Original (2) A Resubmission 0411 712009

01 Name Thedora H. 3untlng. Jr.

03 Signature

02 Mle Sr. VP & Chlaf Accounting Offfcer Theodore H. Bunthg, Jr. W17/2009

BLANK PAGE

-. . - . . . This Re rtls: (1) 8 A n Orlglnal

Narna of Respondent Entergy Arkansas, Inc. (2) n A ResubrnIssion

1 - ~~~ Enter in column (c) the terms 'none,' 'not applicable," or "A,' as appropriate, where no information or amounts have been reported for cerlain pages. Omit pages where the respondents are "none,' "not applicabfe,' or "A'. YearlPerid of Report Dateof Re rt

Wi7)2009 ( ~ 0 , Da, 4 End of 2w8m

Une NO.

MI9 of Schedule Ref e re n c e Remarks Page No.

[a) Ibl (Cl

1 104 I I

1

2

3

1 6 1 Important Changes Durlng the Year I 108-109 I

~ ~~

General Informatton 101

Control Over Respndent to2

Carporatrons Controlled by Respondent 103

7

8

9

10

I 11 I Notes to Fmnchl Statements I 122-123 I I

________~

Comparative Balance S h z - 110.113

Statement of lnmrne for the Year 114-117 Statement of RetaIned Eamlngs for tha Year 118-119 Statement of Cash Fbws 120-321

12

13

t4

t5

1 16 1 Electric Plant Leased to Others I 2f3 I NA I

_ _ _ _ ~

Statement of Accum &mp Income, Camp Inwme, and Hedging Actk.itles 1 =(a) @) NA Summary of Utility Pbnt & A m u l a t e d Prwtslons for Dep, mort & Dep 200.201 Nuclear Fuel Materials 202-203 Electrfc Plant in Sed- 204-207

I 17 1 Etectric Plant Held for Future Use I 214 I I

-20 21

22

1 19 I Accumulated Prwislon for Depredation of E l m c Utlllv Planl I 219 I I ~. ~

Investment of Subsldlary G p a n l e s ~ 224-225

Materials and Supplies 227

Allowances 22E-229

26

27

28

I 24 I Unrecovered Plant and Regulatory Study Costs I 230 I __________

Tmnsmlsslm Service andGenemUon Intemnnedlon Study Casts 231 NA Giher Regutatory Assets 232 Miscellaneous Deferred D e b b 233

Accumulated Def8md Income Taxes 234

3t

32

33

1 29 I Capltal Stock I 250-251 I I

CapltaJ Stwk Expense 254 LonpTerm Debt 25€-2!i7

Reconciliation of Reporfed Net Inwrne with T-le lnc for Fed tnc Tax 261

35

36

1 34 I Tares Accrued, Prepid and Charged Durjng the Year I 262-263 I I AEcwnutated Deferred Investment Tax Credits

Other Deferred Credits 269

2E-267

FERC FORM NO. 1 (ED. 1 2 e ) Page 2

ThfsRe rtls:

(2) n A ReSUbmlssbn (1) &An Odglnal

Name of Respondent Entergy Arkansas, tnc,

I r40- I

Data of Report

04/17/2009

YearlPeriod of Report (Mo, Da, Yr) End of 20081w

1 (4 I @I I (GI 37 I Accumulated Deferred Income Taxas-Accelerated Amortization Propem 272-273 I NA

40

41

42

I 38 1 Accumulated Deferred lnwme TaxesMher Property I 274-275 I ~ ~~ ~

Other ReguIatory Uablitlas 278

ElectrIc Operating Revenues 300.301 Sales of Qectrkity bv Rate Schedules 304

1 39 I Accumulated Deferred lnwme Taxes-Uther 1 276457 I

~

45

46

47

48

49

~~ ___ ~~~ ____ ~

Purchased Power 326-327

Transmlsslon of Eleckicily for Others 3 2 W O

Tmnsmkion of Uectdclty by ISOlATOs 33t NA Tmnsrnlsslon of Electricity by Others 332 Mkcellaneous General Emenses-Uectdc 335

I 44 I Uectric Operation and Malntenance Expenses I 320-323 I

Research, Development andDemmtmtion Aktres Distribullon of Salaries and Wages

Common Utiltty Plant and Expenses Amounts included In lSOlRT0 Seftlement Statments

352-353

354-355 356 NA 397 NA

I 50 I D ~ d a t i o n and Amortiration of Electric P[ant I 336-337 I

Monthly ISOlRFO Transmlsskn System Peak h a d Electric Energy Account MonVlly Peak and Ovtput Steam Electric Genemlng Plant Statistics HydroeIectrlc Generatim Plant StauSties

1 51 I Regulatory Commlsslon Expenses t -1 I

M a

4Oi

1101

402403

406-407

%4

65

I 56 1 Purchase and Sale of Ancillarv Senrices I 398 I

Genemffng Ptant StatWcs pages 4 1 M i l Transmklon Una StatrsBcs Pages 422423

I 57 I Monthly Transrnklon SFtem Peak Load I 400 I

66 Tmnsmlsslon Unas Added Durtng the Year 424425

NA

63 I Pumped Storage Genemting Plant Statisti= I 408409 . 1 NA

NA

FERC FORM NO. 1 (ED. t2-96) Page 3

Name of Respondent I Entergy Arkansas, Ine. Dateaf Re rt YearlPeriod of Report (Mo, Da, fl I Endof 200WQ4 I oAr1712009 ., I 1 I UST OF SCHEDULES (Electric UtiMy) (continued)

Enter In column (c) the terms 'none: 'not applicable,' or "NA," as appropriate, where no information or amounts have been reported for eertaIn pages. Omit pages where the respondents are 'none,' 'not applicable,' or "A'.

T3fe of Schedule

. ..

:wtnote Data

Stockholders' Reports Check appropriate box: Four copies will be submltted

No annual report to stockholders is prepad

Reference Page No. 0

42E-427

450

Remarks

(e)

UA

FERC FORM NO. 1 (ED. 12-96] Page 4

Name of Respondent Entergy Arkansas, he.

This Report Is: (1) An Original (2) A Resubmission

Date of Report (Mo, Da, Yr)

YearPeriod of Report

W17/2009 Endof 2ooww

I GENERAL INFOHMATION ~~ . ~. ~

I. Provide name and title of officer having custody of the general corporate books of account and address of off ice where the general corporate books are kept, and address of office where any other corporate books of amount are kept, if different from that where the general corporate books are kept.

medinre E. Bunting, Jr. s d o r vice kcoddant and ad Accmtfag o f f i c e 639 Lopla hums r- Flaw Qrlsarre, Inuhiaua ?(Il l3 2. Provide the name of the State under the laws of which respondent is incorporated, and date of incorporation.

If incorporated under a speclal law, give reference to such law. If not incorporated, state that fact and give the type of organization and the date organized.

3. If at any time during the year the property of respondent was held by a receiver or trustee, give (a) name of receiver or trustee, (6) date such receiver or trustee took possession, (c) the authority by which the receivership or trusteeship was created, and (d) date when possession by receiver or trustee ceased.

4. State the classes or utility and other services furnished by respondent during the year In each State in which the respondent operated.

- Elsctrie Utility S d e e Miasmuxi - Elsctrie U t i l i t y S d c o T-enass - E I e c t d c Utility S d e a

5. Have you engaged as the principal accountant to audit your financial statements an accountant who is not the principal accountant for your previous year's certified financial statements?

(1) Yes ... Enter the date when such independent accountant was initially engaged: (2) El No

~~ -~

FERC FORM NO.1 (ED. 12-07) ?AG€ 101

Name of Respondent Entergy Arkansas, lnc.

This Report Is: (1) An Original (2) AResubmission

Date of Report (Mot Da, Yr)

YearPeriod of Report

End of 2 o o m 4 , 0411712009 I f I

CONTROL OVER RESPONDENT 1. If any corporation, business trust, or similar organ'kation or a combination of such organizations jointly held

control: over the repondent at the end of the year, state name of controlling corporation or organization, manner In which control was held, and extent of control. If control was In a holding company organ*mtion, show the chain of ownership or control to the main parent company or organ'natIon. If eontrot: was held by a trustee(s), state name of trustee(s), name of beneficiary or beneftciearies forwhom trust was maintained, and purpose of the trust.

On December 31 , 2008, Entergy Corporation owned 46,980,196 shares of the Respondent's common stock which represented 100% of the voting rights.

FERC FORM NO. I (ED. 1246) Page 102

Thb Re r t l s

(2) A Resubmtssion (1) &in oigbal

Name of Respondent fntergy Arkansas, Inc.

Une 1 Name of Company Controlled 1 Klnd of Bustness I Percent Vottng I Footnote

Date of Report

04117/2009

YeariPeriod of Report (Mo, Da, Yr) End of 20ww

1 I

10

t 1 I2

13

bl

~~ ~ ~ ~~ __ ~

(I] Entergy Arkansas, Entergy L o u i s l G Properties, LLC, Entergy Mlssksslppi, and Entergy New Orleans own 35%,33%, 19%, and t3%, respectively of all the wrnrnon stock

I Ref. (dl I $ I System Fuels, Inc. I 1 21 I I

I a l I I I I I

I $4 I of System Fuels, Inc., a subsldlary I I 1 ~~

16 andror rnalntalns certtan programs to EUIB, 17 deliver, and store fuel suppIies for thme 18 companies.

19 I r I I

20 I I I I I I

I 1 1 I

I I I I I I I

R R C FORM NO, 1 (ED. 12-96) Page 103

Thls Re fils: (1) 8 A n Original

Name of Respondent Entergy Arkansas, Inc. (2) n A Resubmiaslon

I 31

Dateof Re R Yeartperiod of ~eport

w17/20(19 (Mo, Da, # End of 2 O O a r a 4

1

Ltn9 Title Name of Officer No.

1 (a) [b)

Chief Executive Mfocer and Cbalrman of the Board

1

a ary f: +ear b)

I

5

1 I 4 I President and Chief Executh.a Officer I Hugh T. McDonald I 31 9,286 I

t3 14

7 1 I 8 I t3ecutiVe VP and Chlef Fmanclal OHicer I

Senior VP and Chlef Aeeaunlng Mficer Theodore H. Bunting, Jr.

I Curtis L Hebert, Jr. I I

Execulive VP - General Counsel and Secretary Robert D. Sloan

K t Terry R. Seamons

Gmup Presldent - U t i l i Opemthns Executive VP and Chhf Nuclear Officer

PresMenl and Chlef Operating Officer of Entergy corporauon (2)

I ? 6 1 1 I I

Gary J. Taylor

Mlchael R. Kansler

Rlcltard J. Smith

I t 7 t Executive vp - 000ntions I Mark T. Savoff ! I

.. 31 32 33 34 35 36 37

I I I

' Officers whose salaries am not presented wem compensated by other System companies and not by Entergy Arknnsas, Inc.

(1) Reslgned effective August 2008 (2) Reslgned effecthe Apdl2008

24

26

29

30

40

41 42

43

E R C FORM NO. 1 (ED. 12.96) Page 104

ThlsRe rtls. Date of Report

(2) n A ResubrnIssion W1712009 (11 &in driginal (Mo, Da, Yr) N ~ B of Respondent Entergy Arkansas, he.

I. Report bdowthe iniomalian calted for mneerntng each director d the responded who held offiee at any time duringthe year. Indttde in column (a), abbreviated titles of the directors who are oIficws of Ihe respmdePlL 2 Designate members of the Exewtive committea by a triple asterisk and h e Chdrman of the Exewtive Committee by a double asterisk une Name (and Tde} of Director 1 Principal Business Addmss No. I la\ (hl

YearlPericd of Report End of 20081Q4

1 2

I-, I-.

Hugh T. McDonald - Prddent and Chlef mecuthe Officer 425 W. Capitol Avenue, 40th F h r , Litlle Rock, AR 72201 - 3 4

I

1

Qary J. Taylor - Group Presldent - Utirny Operations 1 639 Lopla Avenus New Orleans, IA 70113 I

18 19 20 21 22

5 LEO P. Denault - l3ecutrve VP & Chief Financial Officer 6 of Eiltergy Corporation 7 8 Mark T. Sawff - Executive VP - O p e m t h ~ 9

--- 639 Loyola Avenue, New Orleans, LA 701 t3

E39 Loyola Avenue, New Orleans, LA 701 13

I 231

381

I I I I

I 271 I 28

29 30 31 32 331 I 341 35 36 37

40 41. 42

~

43 44 45 46 47 48

FERC FORM NO. 1 (EO. 12-95) Page 105

YearlPeriod of Report ~ . Endof 200WQ4

Name of Respondent This Report Is:

I 0411 712009

I I I

[MPORTAKT CHANGES DURING THE QUARTERPIEAR

Give particulars (detalls) concerning the matters indicated below. Make the statements expllcit and precise, and number them in accordance with the inquiries. Each Inquiry should be answered. Enter 'none," 'not applicable,' or 'NM where applicable. If Information whIch answers an inquhy is given elsewhere In the report, make a reference to the schedule in which it appears. 1. Changes In and important additions to fmnchIse fights: Describe the actuaI consideration given therefore and state from whom the franchise rights were acquired. If acquired without the payment of eondderation, state that fact. 2. Acquisjlon of ownership in other companies by reorganization, merger, or consolidation with other companies: Give names of companies invoked, parllculars concerning the transactions, name of the CommissIon authorizing h e transaction, and reference to CommissIon authorization. 3. Purchase or sale of an operating unit or system: Give a brief description of the property, and of the transactions relating thereto, and reference to Commission authorization, if any was required. Give date Journal entries called for by the Uniform System of Accounts were submitted to the CommIssIon. 4. lrnporlant leaseholds (other than leaseholds for natural gas lands) that have been acquired or gIven, assigned or surrendered: Give effective dates, lengths of terms, names of parties, rents, and other eonditton. State name of Commission authorizing lease and give reference to such authorizaff on. 5. Important extension or reduction of transmission or distribution system: State territory added or relinqulshed and date operations began or ceased and give reference to Commission authorization, if any was required. State also the approxlrnate number of customers added or Iost and approximate annual revenues of each class of service. Each natural gas company must also state major new continuing sources of gas made available to it from purchases, development, purchase contract or otherwise, giving location and approximate to!al gas volumes avdabfe, period of contracts, and other partjes to any such arrangements, etc. 6. Obllgattons Incurred as a result of issuance of securities or assumption of liabilities or guarantees inctuding issuance of short-term debt and commercial paper having a maturity of one year or less. Give reference to FERC or State CommissIon authorization, as appropriate, and the amount of obltgatlon or guarantee. 7. Changes In articles of harporation or amendments to charter. Explain the nature and purpose of such changes or amendments. 8. State the estimated annual effect and nature of any important wage scale changes during the year. 9. State briefly !he status of any materially important legal proceedings pending at the end of the year, and the results of any such proceedings culminated during the year. 10. Describe briefly any materially hpartant transacths of the respundent not disclosed elsewhere in this report in whIcch an officer, director, security holder reporled on Page 106, voting trustee, associated company or known associate of any of these persons was a party or in whlch any such person had a maIen'al interest. 11. (Reserved.) 12. If the Important changes duljng the year relathg to the respondent company appearing In the annual report to stockholders are applicable in every respect and furnish the data required by Instructions 1 to 1 I above, such notes may be included on this page. 13. Describe fully any changes in officers, directors, major security holders and voting powers of the respondent that may have occurred during the reporting perid. 14. In the event that the respondent participates in a cash management program(s) and its proprietary capltal ratio Is less than 30 percent pbase describe the signlficant events or transactions causing the proprietary capital ratio to be less than 30 percent, and the extent to which the respondent has amounts loaned or money advanced to Rs parent, subsidiary, or affiltated companies through a cash management program(s). Additionally, please describe plans, i f any to regaln at Ieast a 30 percent proprietary ratlo.

PAGE 108 INTENTlONALLY L E K HANK SEE PAGE 109 FOR REQUIRED INFORMATION.

FERC FORM NO. 1 (ED. 12-96) Page I O 8

Name of Respondent This Report is: Date of Report YearlPeriod of Report (I) An Original (Mo, Da, Yr)

Entergy Arkansas, Ina (2) - A Resubmission 0411712009 20081QQ r IMPORTANT CHANGES DURING THE OUARTERW- (Continued)

1.

2.

3.

4 .

5 .

6 .

7 .

8 .

9.

10 *

I1 - 12 *

13 *

14 .

None

None

In September 2008, Entexgy Arkansas purchased the Ouachita P l a n t , a 789 HW three-train gas-fired combined cycle generating turbine (CCGT) electric power plant located 20 miles south o f the Arkansaa state line near Sterlington, Louisiana, for approximately $210 mill ion from a subsi~ary of C o g e n t r h Energy, Inc. Entergy Arkansas received the plant, materials, and supplies, SO2 emission allowances, and related real estate in the transaction. The FERC and the APSC approved the acquisition. acquisition and ownership costs through a rate rider and the planned sale of one-third of t he capacity and energy to Entergy Gulf States Louisiana.

See Entergy Arkansas' 2008 FEKC Form 1 Notes to Financial Statements, Note L O .

None

The AFSC also approved the recovery of the

See Entergy ATkanSas' 2008 FERC Form 1 Notes to Financial Statements, Notes 4, 5, 6 , and 8 .

None

The Company's fossil operating and clerical employees are represented by the International Brotherhood of Electrical Workers ?EL-CXO, Local Unions 647, 7 5 0 , and 1703. The Company and the Unions agreed to a contract effective October 1, 2006 through October 1, 2009. Effective October 1, 2008, the wage increase walj 3.3%.

In a separate agreement, the Company and its Transmission, Distribution, and Customer Service Support employees, represented by the Internationkil 3rot'herbood of Electrical Workers AFL-CIO, Local Unions 647 , 7 5 0 , 1439, and 3703, agreed to a contract effective October 1, 2006 through October I, 2009. Effective October I, 2008 , the wage increase was 3.31,

In a separate agreement, the Corrrpany and Arkansas Nuclear One operating, maintenance, engineering, technical, and administrative employees, represented by the Intefnational Brotherhood of Electrical Workers AFL-CIO, Local 647, agreed to a contract effective March 1, 2006 through March 1, 2009. Effective March 1, 2008, the wage increase was 3.25%.

Effective April 1, 2008, executive management: pay increases averaged approximately 2.5%, senior management average approximately 3 , 0 % , and middle management, professionals, and support: staff averaged approximately 3.55..

See Entergy Corporation's 2 0 0 8 Form 10-K P a r t 11, Legal Proceedings.

None

Not applicable

See Entergy Arkansas' 2008 FERC Form 1 Notes to Financial Statements.

The following changes occurred during 2008:

Richard J. Smith - President and Chief Operating Off i ce r o f mtergy Corporation - resigned effective April 2008

Jay A. Lewis - V i c e President and Chief Financial Officer - Utility Operations - resigned effective Augmt: 2008

Not applicable

IFERC FORM NO. 1 (ED. q2-96) Page 109.1 I

‘Name of Respondent This Report Is: Date of Report YearPen’od of Report (Mo, Da, Yr) (1) An Original

(2) 17 A Resubmission 041171’2009 Endof 2oowm Entergy Arkansas, Inc.

COMPARATIVE BALANCE SHEET (ASSETS AND OTHER DEBITS)

I FERC FORM NO. 1 (REV. 12-03) Page 110 I

Name of Respondent This Report Is: Date of Report Yearperiod of Reporl Entergy Arkansas, Inc. ( I ) An Original (Mo, Da, Yr)

Endof 2owa4 (2) AResubmission Mi17/2009 COMPARATIVE BALANCE S H E B (ASSFTS AND OTHER DEBITSlcon!inued)

T t e of Account I Page No. (4 I (j4

[Less\ Noncurrent Portion of Allowances Slores Etpense Undistn’buted (1 63) Gas Stored Underground - Current (164.1) Uooefied Natuml Gas Stored and Held for Processina I1642-164d)

227

Prenavments I1651 I t

Interest and Divrdends Receivable (171) Rents Receivable (172) I Accrued Utility Ravenu- (173) I Micellaneous Current and Accrued Assets (174) Derlvahe Instnrment Rssets (t75) 1 (tess) LonpTem Portion of Derhative Instrument Assets (175) Defivalive lnstment Assets - Hedges (176) I

Unamonbed Debt Expenses (181) Wmordlnary Property Losses (182.1) I * 230

~~~ ~ ~~ ~

Unrecovered Plant and Regulatory Study Costs (tB2.4 m e r Regulatory Assets (I 82.3)

230 232

PrelIm. Survey and Investigation Charges (Electric) (183) Preliminary Natwal Gas Survey and InvestrgaUon charges fS3.1) I

Clearing Accounts (1 84) Tempomry FaciliiH (185)

233 Def. Losses from Dkposithn of Utirity Plt (1W)

Unarnortked LDss on Reaqulred Debt (189)

Unrecovered Purchased Gas Costs (1 91

Research, Devel. and Demonstration Expend. ( 4 8 8 )

hccurnulated Deferred lnwme Taxes (190)

352-353

234

Current Year Pdor Year

Balance

13,568,831 15,301,716l 01 I 01 I

127.9911 i d I -

71,117,8691 68 I2 MI44 1 43.487.252) 18,504.3f

01 1 I

1,240,345,608( 980,304,33 d

21 6,24 79,651 01 I -

24,786,075)

Name of Respondent Entergy Arkansas, Inc.

COMPARATIVE BALANCE SHEET (LIABILITIES AND OTHER CREDITS)

This Report is: Date of Report YearlPeriod of Report (I) An Original mot da, Yd (2) [J A Rresubmission 0411712009 end of 20owQ4

Une NO. . TlUe of Account

(a)

Current Year Prior Year Ref. End of PuarterNear End Balance

Page No. Balance $2131: (bl (cl (a

4 5 6

1. 1 PkOPRlETARY CAPITAL I t I 2 I Common Stock issued (2011 I 250-251 I 469.802) 469.80;

Capltal Stock Subscribed (202,205) 252 0 ( Stock UbIHy for Conversion (203,206) 252 0 ( Premium On CaDlBl StDck [2On 252 3.484.414 3.464.41 1

7 8

9 10

Other Pdd-In Capitar (20&211) 253 586,782,848 586,782,W Installments Received on Capital Stmk (212) 252 0 ( (Less) Discount on CapihI Stock (213) 254 0 ( (Less1 Capihl Stock ExDense (21 4) 254 1,802,8333 1.719.97!

11 12 I3 14 I 5

Retalned Earnings (215.215.1,216) lfe-119 8f 0,944,621 795,505,541 Unappropriated Undlstniuted Subsldlary Eamlngs (21 6.1) 1 tE-I19 0 ( (Less) Reaqulred Capltal Stcck (217) 250-251 0 ( Noncorporate Propdetorshlp (Non-maJor only) (218) 0 ( Accumulated Ofher Corn~rehenshe Income I2191 122IalIb) 0 t

16 17 18 f 9

34 I Asset Retirement Oblloatlons 12301 I I M .700 4271 5 0 5.62 8.23 1

Total Pmprletary CapM (llnes 2 through 15) 131 6,208,652 1,500,912,42; LONG-TERM DEBT Bonds(221) 256-257 1,200,000,000 9 00, MI 0, MI ltessl Reaaulred Bonds (2221 256.257 47.000.000 (

20 2t 22 23

Advances from Assodated Companies (223) 256-257 0

U ~ m o r t L e d Premium on hg-Term Debt (225) 0 ( Other Long-Term Debt (224) 25E-257 466,626,369 41 6,l O4,38!

[Less) Unamortized Dlseount on Lonc-Term Debt-Debh (226) 1.457.281 1 S79.82;

41 1 Customer Dewsk f2351

- .

35 36

I

. .____. ~ ___, - .- ,- --.---, I _ _ , _ _ _ r _ _ - Total Other Noneumnt Uabllitles (Iines 26 thrnugh 34) 753,8%?,2861 701,234,03! CURRENT AND ACCRUED LlABlUTIES I

I

38 39 40

60.s57.97d

Amunts Payable (232) 147.1 73,964 100,245,69:

Amunts Pavable to Assoclated ComDanles (2341 433.46 0.3 25, 486.200.73; Notes Payable to Assoclated Companies (233) I 0 (

57.751.49'

43 44 45

42 1 Taxes Accrued (236) I 262-263 I -31 ,Ca,306) 89,538,12t Interest ACCWHI (237) 26,800,80il 18,847,41! Dhridends Declared (238) 1,718,305) 1,718,30! Matured Lona-Term Deb! (2391 d [

43 44 45

Interest ACCWHI (237) Dhridends Declared (238) Matured Lona-Term Deb! (2391

26,800,80il 18,847,41! 1,718,305) 1,718,30!

d [

FERC FORM NO. 1 (rev. 7243) Page 112

me of Respondent tergy Arkansas, Inc.

This Report is: (1) AnOriginal (2) A Rresubmisdon

- Une NO.

- 46 47 -

Dale of Report (ma, d a yr)

Yeadperiod of Report

200WQ4 0411 7l2w9 end of

52 53 54 55

- - -

TiUe 01 Account (4

Mahired Intmst (240) Tax Collections Payable (241) Mkdlaneous Current and Amrued Uabllitles (242) Dbflgauons Under Capbl Leases-Cunent (243) Derivative Instrument Uabllitjes (244) [less) Long-Ten Portion of Derivative Instrument LfabItkies Derivative Instrument Uabitities - Hedges (245)

56 57 58 59

- - -

Current Year Prlm Year Ref. End of QuarterNear End Balance

Page No. Balance l a 3 1 Ib) (a (dl

0 C 12,447,621 8,132,9229 3,155,270 1,CG9,71? 60,275,943 49,737,637

0 C 0 a 0 E

(&) Long-Term Portran of Derivative lnstnrment UabIWes-Hedges rota1 Current and Accrued bbilities (lines 37 thmugh 53) DEFERRED CREDITS

4eeumulated Deferred Investment Tax Credits (255)

M e r Deferred Credlts (253)

Customer Advances for C o n s e o n (252)

Deferred Gains from Dspsiffon of Utility P h i (256)

mer Regulatory Uabllitles (254)

0 C 71 4,033,903 813,212,03€

0 C 266-267 13,043,6550 13,067,9=

0 C 269 393,493,017 272,995,69 278 53,465,838 144,#2,2az

Unamortized Gain on Reaqutrd Debt (257) 4 m . Deferred Income Taxes-Aceel. Amoh(281) 4 m . Deferred Income TaxesUthsr Properly (282) 9ccurn. Deferred Income Taxes-Other (283) rota1 Deferted Credits {tlnes 56 through 64) rOTAL UABIUTIES AND STOCKHOLDER EQUITY (Ilnes 16,24,35,54 and 65)

FERC FORM NO. 1 Irev. 12-03)

0 C 272-277 0 C

935,201,794 704,847,5SC 866,494,666 759,02I,572

1,894,765,052 2,261,690,465 6,064,Ml4,894 6,224,648,112

Pam 113

Name of Respondent This Report is: Date of Report (Mo, Da, Yr) (1) 3 An Original

fitergy Arkansas, Ina (2) - A Resubmission 04117)2009

bcbedule Page: f10 Line Nu.: 5 Column: c I Includes removal costs of $5,861,148.

bchedule Page: I10 Like No.: 5 Column: d 1 Includes removal costs of $22,967,758.

YeadPeriod of Report

20081Q4

IFERC FORM NO. I (ED. 12-87) I Page 110-1f3 Footnote.t

BLANK PAGE

(I 1 &in ohglnal (2) n A Resubmission Entergy Arkansas, Inc.

Annual or Quarterly if applicable 5. Do not report fourth qmarfer data In colurnm (e) and (0 6. Report amounts for accounts 412 and 413, Revenues and Expenses from U t i l i PIant Leased to Others, In another utility coolurnnln a similar manner b a utifii department Spread the arnotmt(s) over lines 2 thru 25 as appropriate. Include these amounts in wlumns (c) and (d) totals. 7. Report amounts in account 414, Other Utjrf Operating Income, In the same manner as am- 412 and 413 above. 8. Report dah for tines 8,lO and 11 for NaIuml Gas companies ushg amounts 404.1,404.2,404.3,407.1 and 407.2

(Mo, Da, Yr) End of 2oOwQ4 04(17&009

FERC FORM NO. 1/34 (REV. 02-04)

Name of Respondent

FERC FORM NO. 1 (ED. 12-96)

Date of Report uearirenw 01 n e p n (Mo. Da, Yr) End of 200WQ4

Page 1js

Entergy Arkansas, Inc. (2) n A Resubrnlsslm 0411712009

This Re rtls: (11 $AR Originat

Name of Respondent

Enhtergy Arkansas, Inc. (2) n A Resubmlsslon I

STATEMENT OF INCOME FOR Une No.

(Ref.) Tda of Account Page No.

(a) (b)

Date of Report (Mo, Da, Yr) I Endof 04H712009

Yearmenod Ot Repon

I Ended 1 Ended i

FERC FORM NO. 1 M (REV. 02-04) Page 117

' BLANK PAGE '

Thls Re rt Is:

(2) n A Resubmission Name of Respondent (1) &Anoriginal Mtergy ATkanSaS, he.

Date of Report (Mo, Da, Yr) 0411 712009

YearlPerid of Report End of

R R C FORM NO. V34 (REV. 0244) Page 118

current QuarierHear

Con- primary Year to Date h 8 Item Acwunt Affected Balance

Prevlous QuarterNear Year to Date

Balance

Date of Report (Mo, Da, Yr) End of

YearFerlod of Repon 2WWQ4

Name of Respondent

Entergy Arkansas, Inc. 0411712009 STATEMENT OF A!ETAINED EARNINGS

1, Do notreport U&s 49-53 on the quarterly version. 2. Report all changes in appropriated retained eamfngs, unappropriated retained earnings. year to date, and unapprophated undistributed subsldiary earnings for the year. 3, Each credit and debit during the year should be identified as to the retdned earnings account In which recorded (Accounts 433,436 - 439 Inclusive). Show the contra primary account affected in column (b) 4. State the purpose and amount of each resenration or appropriation of retalned earnings. 5. List first account 439, Adjustments to Retained Earnings, reflecting adjustments to the opening balance of retained earnings. Follow by credit, then debit items In that order. 6, Show dividends for each class and series of capital stock. 7. Show separately the State and Federal income tax effect of items shown in account 439, Adiustments to Retained Earnings. 8. Bplain in a footnote the basis for determining the amount resewed or appropriated. If such reservation or appropn'atlan is to be recurrent, state the number and annual amounts to be reserved or appropriated as well as the totals eventually to be accumdated. 9. If any notes appean'ng in the report to stockholders are appticable to this statement, include them on pages 122-123.

Cantm Primary Une Item Acwunt Affected No. (a) (b) 39 40

I

49 BalanceBeginnIng of Year (DebH or Credit) 50 Equity in Eamlngs for Year (Credit) (Account 418.1) 51 (Less) Dlvldends Received (Deblt) 521 I 531 BalanceEnd of Year (Total lines 49 thnr 52)

Current Quarternear Year lo Date

Balance (a

Pnvrous Quarterrnear Year to Date

I Balance (a

810.Q44.6211 795,5653

I

i

FERC FORM NO. 113-11 (REV. 02-04) Page $19

Name of Respondent This Report is: Date of Report (I) An Original (Mo, Da, Yr)

Entergy Arkansas, Inc (2) - A Resubmission 0411712009

bcheduje Page: f78 Line No.: 24 Column: c 1

Yeadperiod of Report

2owQ.4

For the Year Ended December 31, 2 0 0 8

$100 Preferred Stock: 4.32% Series, $4.32 per share 4-72% Series, $4.72 per share 4 .56% Series, $ 4 . 5 6 per share 4.56% Series, (1965 Series) $4.56 per share 6 . 0 8 % Series, $ 6 . 0 8 per share

Total

$25 Preferred Stock: 6.45% Series

Total Preferred Stock Dividends

$ 302,400 441,320 342,000 3 4 2 , 0 0 0 m a , ooo

2 , 0 3 5 , 7 2 0

4,837,500

bchedule Page: 118 Line No.: 24 Column: d I For the Year Ended December 31, 2007

$100 Preferred Stock: 4.32% Series, $4.32 per share $ 302,400 4.72% Series, $4.72 per share 441,320 4.56% Series, $4.56 per share 342,000 4.56% Series, (1965 Series) $4.56 per share 342 , 000 6 . 0 8 % Series, $ 6 . 0 8 per share 6 0 8 , 0 0 0

Total 2 , 035 , 720 $25 Preferred Stock: 6.45% series

Total Preferred Stock Dividends

4 , 8 3 7 , 5 0 0

~FERC FORM NO. (ED. 42187) I

Page 118419 Footnote,l

SLANK PAGE

This Re rt Is:

(2) n A Resubmlsslon (I 1 &~n Original

, Name of Respondent i fitergy A ~ W S , inc.

1 2 lNet Inwme Line 78Id on oam I I71 I 47.1 52.299 I i39.110.74B1

Date of Repor!

04l17&009

YearlPericd of Report (Mo, Oa, Yr) End of 200WQ4

4 Oepreclatlon and Deptetlon 271,842,936 260,761,765 5 Amortiration of DeM D l m u n t and Prernlum on Debt 4,803,027 4,92a,854 6 mer Regulatory Credii I -1 0,038,812 -28,593,024

Una Nn.

71 I I 8 tDeferred Inccrrns faxes (Net) 287.9 17.753 I 540.950.080

Description (See Insbuctlon No. 1 for l3planation 01 Wes) Current Year 10 Date Previous Year to Date QuarterNear QuarterlYear

10 lNet (Increase) Decrease In Receivables I 67,558,433 1 -21,930,782 I 1 (Net (Increase) Decrease In Inventory -1 0.322.0117 I - 3,635 I5 08 12 13 14 15 16

~

Net (Increase) Decrease In Allowances Inventory

Net (Incmase) Decrease in Other Regutatory Assets -260,041,277 396,183,937 Net Increase (Decrease) In Other Regulatory UahiMes -91,366,444 1 t ,590,551 [Less) Atlavanca for Other Funds Used During Construction 1 1 .I 42,560

Net Increase (Decrease) In PayabIm and Accrued menses -41,041,381 -153,144,533

6,25 9,4 5 2 17 I(&) Undlsbibuted Earnings from Subsidiary Companies I ' I 18 b h e r (provlde detalts In frntnote): I 19 20 21 22 23

~~

OtherWotklng Capltal -15,9ao,m 8,08S,448 Other 228,021 ,650 19,347,117

Ne! Cash Provided by (Used h) Operating Activitles (Total 2 thru 21) 460,250,637 368,139,176

24 25 26

_____

Cash Rows from tnveslment Activities: Construction and Acqulsltron of Plant (Including [and): Gross Additions to U W Piant (less nuclear h e n 1 -373.973,OfQ -3011,401,066

32 1Pmeeds from Salekaseback of Nuclear FueI I 1 05,061,755 1 42,443,987 33 1Decommisslodna Trust Funds -14.550.138 1

27 28 29 30 31

37 Pmeeds from Disposal of Noncurrent Assets (d) 38 39 Investments in and Advances to Ass=. and Subsldiaw Companies

Gross Additlons to Nuclear Fuel -105,278,978 -40,353,038 Gross Additions to Common Utllity Plant Gmss AddItlons to NonutiIii PIant (Less) Allowance for mer Funds Used During Constnretion Other Iprwlde details In foomotek Payment for Purchase of Plant

- 6,s 9,4 5 2 -21 0,028,606

-1 1,142,560

40 Contributions and Advances from Assoc. and Subsldiary CompanlF 41 Dbposition of Investments in (and Advances to) 42 Associated and Subsidiary Companies 43 44

45 Purchase of Investment Securities (a) Pro%?& from Sales of lnvesanent Secutitles (a)

This Re oh Is: (1) d A n Original I21 T1 A Resubrnbion

Name of Respondent Entergy Atkansas, Inc. .. I 1 1

STATEMEKF OF CASH FLOWS

(I) w s to b use&(a) Not Proccds or Payman!s:@)Bonds, debenurns and oihur leng4en debt (e) lncluh wmmerctal pap5 and (d) tdenttb saparalely such lfoms as hoslments, fxed essats, Intnnglblas. ak. (2) lnlormatlon a b u t noncash Investing and fm-g activllles muzl ba pmvMded In be Ndas to Ule Rnmdal statornonts. Also prwkle B rewondllallon batweon 'Cash and Cash Equhralonts at End of Ped@ 14th rah!ed amounts on t h ~ Balttnw ShaaL (3) Operating Actlvitios .Mhor: lncludo gans and tosses prlnlnlng to qmrnting activlUes only, GaIns and losses portalnlng b h a s h g andfinandng adiwiihes shoukl be mportad In t b . 9 advlllos. Show In tho Notas lo tho FiMndaIs Iho amounls of intarest paId (not of amounl capttallmd) and l n m e taxes pld. (4) lnvostlng Amiues: Mrrdo at Othur (line 31) not cnsh outilw, bncqulre other wrnpanlas. PmMe a rneondbtion of assst awlred M h UablHtles assumed In W Notns C the FInandal Stalemanls. a0 not lnduda on lhls statement Iho Mar amount 01 le- capltallzed per the USofA General ImWon 20: Instoad prwldo a rewndhbn d Iho dolhr arnounl of Iaasrrs caplkdkzd wilh Lhe plant East

-. Date of Report [Mo, Da, Yr) 0411 712009

Year/Pedd of Report End of

Current Year to Date QuarterNear

Descripuon (See Instruetion No. 3 for Explanation of Wes) Una No. (4 (W 46 Loans Made or Purchased 47 (Collections on Loans I I 481 I

Prevlous Year to Date QwrterNear

(GI

49 50 51 52 lNet Increase (Decrease) In Payables and A m e d Qenses 53 h h e r (mmide details in footnotel:

1 1 I

Net (Increase) Decrease In Reccelvabks Net (Increase ) Decrease In Inventory Net /Increase) Deerease In Allmnces Held for Speculation

I I

54 (Change fn Money Pwl Receivable - net 1 -15,990,8771 t 4,298,125

67 68 69 70 71

I 551 1 I I

Other (pm*de details In footnote):

Cash Provided by OLrtsIdo Soumes (Total 61 thru 89) 287,260,797

1 57 Irotaf of lines 34 tbru 551 I -608.500.41 f I -290.150.762 I

~~

76 Mher(pmvida details In f&note): ~

77 Change in Money Pool Payable -net -77,BBt ,744 77,881,794 78 Net Decrease In Short-Term Debt (c)

~

1

61 ILong-Tern Debt {b]

7 9 ~

-6,873,220 81 Dividends on Common Stock -24,900,000 -1 81,600,000 80 Dividends on Prefened Stock -6.a73.220 ~

I 297,260,797 I I 62 IPrefed Stock 1 I 63 b m m o n Stock I 64 JOthsr (provide details In footnote): I I 651 I

I 1

66 lNet Increase In Short-Term Debt (c) ! 1 1

I 73 Ilonptenn Debt /bl I I 1 74 Jpreferred stock 1 1 75 brnrnon Stock I

9Q Cash and Cash Equtvalents at End of period 211,809

FERC FORM NO. 1 (ED. 12-96) Page 121

Name of Respondent Entergy Arkansas, he.

I I I t NOTES TO FINANCIAL STATEMENTS

This Report ts: Date of Report YeFIPFnhd of ReTOrt (I) AnOrighal Endof zoo8144 (2) AResubmission 0411 7M009

I. Usethe space below for impchant notes regarding the Balance Sheet, Statement of Income for the year, Siaternent of Retained Eamfngs for the year, and Statement of Cash Wows, or any account thereof. Classify the notes according to each basic statement, providing a subheading for each statement except where a nob is applicable to more than one statement. 2. Furnish particulars (details) as to any significant contingent assets or Iiabllities existing at end of year, including a brief explanation oi any action Initiated by the In!emal Revenue Servics involving pmsible assessment of additional Income taxes of material amount, or of a claim for refund of income taxes of a material amount initiated by the ufilify. Give also a brief explanation of any dividends in arrears on cumulative preferred stock. 3. For Account 116, Utility Plant Adjustments, explain the origh of such amount, debits and credits during the year, and plan of dispositlon contemplated, giving references to Commission orders or other aulhorirations respecting classification of amounts as plant adjustments and requirements as to disposition thereof. 4. Where Accounts 189, Unamortized Loss on Reacquired Debt, and 257, Unamortized Gain on Reacquired Debt, are not used, give an explanation, providing the rate treatment given these items. See General Instruction 17 of the Uniform System of Accounts. 5. Give a concise explanation of any retained eamtngs restrictions and state the amount of retained earnings affected by such re st ri c t i o n s . 6. If the notes to financial statements relating to the respondent company appearing In the annual report to the stockholders are applicable and furnish the data required by instmelons above and on pages 114-121, such notes may be Included hereh 7. For the 3Q disclosures, respondent must provide in the notes sufficient disclosures so as to make the interim information not misleading. Disclosures which would substantially duplicate the disclosures contained in the most recent FERC Annual Report may be omjtted. 8. For the 3P disctosures, the disclosures shall be provided where events subsequent to the end of the most recent year have occurred which have a materia1 effmt OR the respondent. Respondent must include in the notes significant changes since the most recently completed year In such items as: accounting principles and practices; estimates inherent in the preparation of the financial statements; status of long-term contracts; capitabation including significant new borrowings or modifications OF existing financing agreements; and changes resulting from business combinations or dispositions. However w8re material contingencies exist, the disclosure of such matters shalt be provIded even though a significant change since year end may not have uccurred. 9. Finally, i f the notes to the financlal statements relating to the respondent appeaing In the annual report to the stockholders are appllcabfe and furnbh the data required by the above instructions, such notes may be included herein.

PAGE 122 INTENTIONALLY LEFT BLANK SEE PAGE 123 FOR REQUIRED INFORMATION.

FERC FORM NO. 1 (ED. 1246) Page 322

Name of Respondent This Report is: ( I ) y An Original

Enbgy Arkansas, Inc. (2) I A Resubmisdon

A. CASH FIOW STATEMENT, ADDITIONAL I W O ~ ~ O X Cash and Cash Equivalents at December 31,2008

Cash (Account 131) $3,015,050 Working Fund (Account 135) 276,642 Tempomy Cash Invesments (Account 13Q 36276.126

$39,567,8 18 Total Cash and Cash Equivalents

Date of Report YearlPeriod of Report (Mo, Da, Yr)

0411712009 200BrQ4

SUPPLEMENTAL DISCLOSURE OF CASH FLOW STATE= (in 000s) Cash paid/(received) during the period for:

Interest -net of amt capitalized Income Taxes ($57,902)

$71,645

B. FERC FORM 1 PRESENTATION COMPARED TO G-Y ACCEPTED ACCWNTJNG PRINCIPLES

The accompanying financial statements have been prepared in accordance with the accountbg requirements of the E R C as set forth in the Unifonn System of Accounts and accounting reIeases, which differs from GAAP. Additional comparative data, including the 2007 data for the statement of retained e a m h p and cash flows, are needed to present the financial position and results of opwations in order to satisfy GAAP. In addition, GAAP requires the disclosure of the current and long-term portion of assets and Iiabilities. In accordance with FERC repohg requirements, the aforementioned disdosures were not included in these financial statements.

As required by the FERC, Entergy Arkansas, Inc. classifies certain items in the balance sheet (primarily the classification of the components of accumulated deferred incomc taxes, taxes accrued, certain other m'scelhneom current and accrued liabilities, matmities of long-term debt, deferred debits, defemd credits, and accumdated depreciation) in a manner different than that required by G W .

C. The Notes to the Financial Statements included herein are from the Entergy Corporation and subsidiaries Form 10-K for the Year Ended December 3 1,2008. The Form 10-K Notes to the Financial Statements ilfe prepared in conformity with GAAP, and thus may differ in certain instances &om the financial stafements contained herein.

"Entergyt' when used in these Notes means Entergy Corporation and its direct and indirect subsidiaries.

"Regismt Subsidiaries" when used in these Notes means Entergy Arkansas, Inc., Entergy GuIf States Louisiana, L.L.C., Entergy Louisiana, LLC, Entergy Mississippi, hc., Entergy New Orleans, hc., Entergy Texas, Inc., and System Energy Resources, Inc.

"UtiIity'' when used in the Notes meam Entergy's business segment that generates, transmits, distributes, and sells electric power, with a small amount of natural gas diskibution.

"Utility operating companies" when used in these Notes means Entergy k h s a s , Entmgy GuIf Statcs Louisiana, Enterjg Louisiana, Entergy Mississippi, Enterm New Orleans, and Entergy Texas.

]FERC FORM NO. 1 (ED. 12-88) Page 123.1 I

Name of Respondent This Report is: Date of Report (Mo, Da, Yr) (I} 3 An Original

Entergj Arkansas, tnc (2) - A Resubmission 0411712009

NOTES TO FINANCIAL STATEMENTS

NOTE 1. SLIMMAFLY OF SIGNIFICANT A C C 0 U " G POLICIES

Yearperiod of Report

2008lQ4

Use of Estimates in the Preparation of Financial Statements

In conformity w*th generally accepted accounting principles, the prcparation of Entergy Coxporation's consolidated financial statements and the separate financial statements of the Registrant Subsidiarics requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent w e t s and liabilities. Adjustments to the reported amounts of assets and liabilities may be necessary in the fibre to the extent that future estimates or actual results are different from the estimates used.

Revenues and Fuel Costs

Entcrgy Arkansas, Entergy Gulf States Louisiana, Entcrgy Louisiana, Entergy Mississippi, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, huisiana, Mississippi, and Texas, respectively. Entergy Gulf States Louisiana also distributes gas to retail customers in and around Baton Rouge, Louisiana. Entergy New Orleans sells both eIectric power and gas to retail customers in the City of New Orleans, except for Algiers, where Entergy Louisiana is the elecbic power supplier. Enter& Non-Utility Nuclear segment derives almost all of its revenue from sales of electric power generated by plants owned by the Non-Utility Nuclear segment.

Entergy recognizes revmue fiom eleckic power and gas sales when power or gas is delivered to customers. To the extent that deliveries have occurred but a bill has not been issued, Entergy's Utility operating companies accme an estimate of the revenues for energy delivered since the latest billings. The Utility operating companies calculatte the estimate based upon several factors inchding billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and prices in effect in Entergy's Utility operating companies' various jurisdictions. Changes arc made to the inputs in the estimate as needed to reflect changes in billing practices. Each month the estimated unbilled revenue amounts are recorded as revenue and unbilIed accounts receivable, and the prior month's estimate is reversed. Therefore, changes in price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the next, and may result in van'abiiity in reported revenues fiom one period to the next as prior cstimates are reversed and new estimates recorded.

Enterm's Utility operating companies' rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of he1 costs until the costs are billed to customers. Because the fuel adjustment clause mechanism allows monthly adjustments to recover fuel costs, Entew New Odeans and, prior to 2006, Enter= Louisiana and Entergy Gulf States buisiana include a component of fuel cost recovery in their unbilled revenue calculations. Effective January 1,2006, however, for Entmgy Louisiana and Entergy Gulf States Louisiana this fuel component of unbiIled accounts receivable was reclassified to a deferred he1 asset and is no longer included in the unbilled revenue cdculations, which is in accordance with regulatory treatment. Where the he1 component of rcvenucs is billed based on a pre-determined fuel cost (fuced he1 factor), the fuel factor remains in effect until changed as part of a general rate case, fie1 reconciliation, or fixed f%el factor filing. Entergy Mississippi's fuel factor includes an energy cost rider that is adjusted quarterly. In the case of Entergy Arkansas and Entcrgy Tcxas, a portion of their he1 under-recoveries is treated in the cash flow statements as regulatory inveStments because those companies are allowed by their regulatory jurisdictions to recover the fuel cost regulatory asset over longer than a twelve-month period, and the companies e m a carrying charge on the undw-recovered balances.

IFERC FORM NO. 1 (ED. 12-88) Page 123.2 I

Name of Respondent

Entergy Arkansas, Inc

7his Report is: (1) X An Original (2) - A Resubmission

System Energy's operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Enterpy New Orleans opmthg expenses and capital costs attributable to Grand Gulf. The capital costs are computed by allowing a return on System EnerHs common equity funds allocable to its net investment in Grand Gulf, plus System Energy's effective interest cost for its debt alIocable to its invesment in Grand Gdf.

Date of Report Yeadperiod of Report (Mo, Da, Yr)

0411712009 200NQ4

Proper&. Plant, and Equipment

Property, plant, and equipment is stated at original cost. Depreciation is computed on the straight-line basis at rates based on the applicable estimated service lives of the various classes ofproperty. For the Registrant Subsidiaries, the original cost of plant rctired or rcmoved, less salvage, is charged to accumulated depreciation. Normal maintenance, repairs, and minor replacement costs are charged to operating expenses. Substantially all of the Registrant Subsidiaries' plant is subject to mortgage liens.

Net property, plant, and equipment for the Registrant Subsidiaries (including property under capital lease and associated accumulated amorhation) by company and functional category, as of December 31,2008 and 2007, is shown bdow:

Entergy Entergy Gulf Stafes Entergy Entergy En?ergy Entergy System

2008 Arkansas Louisiana Louisiana Mississippi New Orleans Texas Energy - (InMillions)

Production Nuclear $1,063 51,410 S1,434 s- %- % $1,561 Other 470 239 354 346 - 314 -

Transmission 782 386 508 476 21 545 6 Distribution 1,519 733 1,148 885 236 840 - Other 201 I80 302 194 165 110 20 Construction work in progress 142 202 602 a2 22 22 1 123 Nuclear fucl (leased d owned) 137 I52 74 - - 133 Property, plant, and equipment - net S4,3 14 $3,302 S4,422 $1,983 3444 $2,030 - $1,843

Entergy Entergy Gulf States Entcrgy Enter= Entergy Entergy System

2007 Arkansas Louisiana Louisiana Mississippi New Orleans Texas Energy (zn MWons)

Production Nuclear $1,104 S1,421 91,501 5- s- 5- $1,626 Other 246 156 337 301 3 320 I

Transmission 713 35 1 466 452 22 529 7 DistribUtiOIl 1,428 703 1,109 895 250 822 Other 191 166 295 194 166 103 15 Consstrilction work in progress 147 142 277 73 14 72 88 Nuclear fuel (leased and owned) 144 122 45 I 1 - 89 Property, plmf and equipment - net S3,973 $3,061 $4,030 $1,915 $454 $1,846 $1,825

Deprcciation rates on average depreciable property for the Registrant Subsidiaries are shown below:

Entergy Entergy Gtd€ States Entergy Entergy Entergy Entergy System

Arbnsas Louisiana Louisiana Mississippi New Orleans Texas Energy IFERC FORM NO. 9 (ED. 12-88) Page 123.3 I

Name of Respondent

Entergy Arkansas, Inc.

2008 3.2% 2.2% . 2.5% 2.6% 3.1% 2.4% 2.9% 2007 32% 2.2% 2.5% 2.5% 3 .O% 2.4% 2.8% 2006 3.2% 2.2% 2.5% 2.6% 3.0% 2.4% 2.9%

This Report is: Dale of Report YearPeFiod of Report {l) X An Original (Mo, Da, Yr) (2) - A Resubmission 04/17/2009 20081w

Jointly-Owned Generating Stations

Certain Entergy subsidiarics jointly own electric generating facilities with affiliates or third parties. The investments and expenses associated with these generating stations are recorded by the Entergy subsidiaries to fhe extent of their respective undivided ownership interests. As of December 31, 2008, the subsidiaries' inveshent and accumulated dqmciation in each of these generating stations were as folIows:

TotaI Megawatt Accumulated

Generating Stations Fuel-Type Capability (1) Ownership Investment Depreciation (In Millions)

Utility business: Entcrgy A r h n s - Independence

White Bluff Entcrgy Gulf States Louisiana - Roy S. NeIson Big Cajun 2

Entergy Mississippi - Independcnce

- Roy S. Nelson Big Cajun 2

System Enmgy - Grand Gulf

Unit 1 C o m m o n Facilities Units 1 and2

Unit 6 Unit 3

Units 1 and2and Common Facilities

Unit 6 Unit 3

Unit I

Non-nudear wholesale assets: hdcpendence Unit 2

Common Facilities

Harrison County

coal

coal coal

Coal Coal

Cod

Cod CoaI

Nuclear

Cod

coal Gas

836

1,655

550 sa8

1,678

550 588

1,265

842

550

3 1.50%

35.75% 57.00%

40.25% 24.15%

25.00%

29.75% 17.85%

90.00%(2)

14.37%

7.18% 60.90%

$121

$3 1 $483

$234 $139

5243

SI73 5102

$3,794

573

$15 $212

$88

$22 $3 13

5157 $86

$128

$114 $62

$2,207

337

$14 $24

(1) "Total Megawatt Capability" is the dependable load canyhg capability as demonstrated under actual operating conditions based on the primary fueI (assuming no curtailments) that each station was designed to utilize. Includes an 1 1.5% leasehold interest held by System Energy- System Energy's Grand Gulf lease obligations are discussed in Note 10 to the financial statements.

(2)

NncIear Refueling OutaEe Costs

~ F E R C FORM NO. I (ED. 12-88) Page 123.4 I

Name of Respondent This Report is: Date of Report YearPen'od of Report {I) X An Original (Mo, Da, Yr)

EntergyArkansas, I n c (2) - A Resubmission w1712w9 2OOWW NOTES TO FINANCIAL STATEMEMS (Continued)

J

Nuclear refueling outage costs are deferred during the outage and amortized over the estimated period to the next outage because these refueling outage expenses arc incurred to prepare the units to operate for the next operating cycle without having to be taken off h e ,

AlIowancc for Funds Used During Construction (AFUDQ

AmTDC rcprescnts the approximate net composite interest cost of borrowed funds and a reasonable rehun on the equity funds used for construction by the Registrant Subsidiaries. AFUDC increases both the plant balance and eamings and is r e a r i d in cash through depreciation provisions included in rates.

Income Taxes

Entergy Corporation and the majority of its subsidiaries fiIe a United States consolidated federal income tax return. lncome taxes are allocated to the subsidiaries in proportion to their contribution to consolidated taxable income. h accordance with SFAS 109, "Accounting for Income Taxes," deferred income taxes are recorded for all temporary cliffcremes between thc book and tax basis of assets and liabilities, and for certain credits available for carryforward. EnterB Louisiana, formed December 31,2005, was not a member of the consolidated goup in 2006 and 2007 and filed a separate fedmal income tax r e m . Beginning Janua~y 1, 2008, Entergy Louisiana joined the Entcrgy consolidated federal income tax return.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities .are adjusted for the effects of changes in tax laws and rates in the period in which the tax or rate was enacted.

Investment tax credits are deferred and amortized based upon the average useful life of the related property, in accordance with ratemaking treatment.

AppIication of SFAS 71

Entergy's Utility operathg companh and System Energy currently account for the effects of regulation pursuant to SFAS 71, "Accounting for the Effects of Certain Types of Regulation." This statement applies to thc financial statements of a rate-regulated enterprise that meets three criteria. The enterprise must have rates that (i) are approved by a body empowmed to set rates that bind customers (its regulator); (ii) arc cost-based; and (iii) can be charged to and collected from customers. Tbese criteria may also be applied to separable portions of a utility's business, such as the generation or transmission functions, or to specific classes of customers. If an enterprise meets these criteria, it capitalizes costs that would otherwise be charged to expense if the rate actions of its regulator make it probable h a t those costs wil1 be recovered in future revenue. Such capitalized costs are reflected as regulatory assets in the accompanying financia1 statements. SFAS 71 requires that rate-regulated enterprises continue to assess the probability of recovering their regdatory assets. When an enterprise concludes that recovery of a regulatory asset is no longer probable, the regulatory asset must be removed fiom the entity's balance sheet.

SFAS 101, "Accounting for the Discontinuation of Application of FASB Statement No. 71," specifies how an enterprise that ceases to meet the criteria for application of SFAS 71 for all or part of its operations should report that event in its financial statements. In general, SFAS 101 requires that the enterprkc report the discontinuation of the application of SFAS 71 by eIiminating fTom its balance sheet all regulatory assets and liabilities related to the applicable operations. Additionally, if it is determined that a regulated enterprise is no longer recovering all of its cos& and therefore no longer qualifies for SFAS 71 accounting, it is possible that an impairment may exist that could require further write-offs of plant assets.

~FERC FORM NO. I (ED. 12-88) Page 123.5 I

ame of Respondent

Entergy Arkansas. Inc. I(2) - A Resubmission I 0411712009 I 2 0 0 8 m NOTES TO FINANCIAL STATEMEKFS (Contmued)

This Report is: Date of Report Yeadperiod of Report (I 1 X An Original (Mo, Da, Yr)

E m 97-4: "Deregulation of the Pricing of Electricity - Issues Related to the Application of FASB Statements No. 71 and 101" specifies that SFAS 71 should be discontinued at a date no later than when the effects of a transition to competition plan for all or a portion of the entity subject to such plan are reasonably determinable. Additionally, EITF 974 promulgates that regulatory assets to be recovered through cash flows derived h m another portion of the entity that continues to apply SFAS 71 should not be written 0% rather, they should be considered regulatory assets of the portion of the entity that WiIl continue to apply SFAS 7 1.

During 2005 and 2006, Entmgy filed notices with the FERC to Withdraw its market-based rate authority for wholesale transactions in the Entergy control area and submitted new cost-based rates to the FERC for approval. During the second quarter 2006, the FERC issued an order accepting the cost-based rates filed by Entcrgy. Prior to this FERC decision, Entergy Gulf States, Inc. did not appIy regulatory accounting principles to its wholesale jurisdiction. The FERC decision in the second quarter 2006 resulted in Entergy Gulf States, Inc. meeting the three SFAS 71 criteria discussed above for its wholesale jurisdiction and, therefore, enter^ Gulf States, Inc. reinstated the application of regulatory accounting principles to its wholesale business. Reinstatanent of regulatory accounting principles resulted in a credit to miscellaneous income in 2006 of approximately $4.5 milIion for Entergy Gulf States Louisiana and $3.3 million for Entergy Texas.

Scc Note 2 to the hancial statements for discussion of transition to competition activity in the retail regulatory jurisdictions served by Entmgy's Utility operating companies.

Cash and Cash Equivalents

Entergy considers all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at date of purchase to be cash equivalents.

Investments

Entergy applies the provisions of SFAS 115, "Accounthg for Investments for Certain Debt and JQUity Securities," in accounting for investments in decommissioning trust funds. As a result, Entergy records the decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in mtcs and in accordance with thc regulatory treatment for decommissioning mt funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gaind(losses) on invesiment securities in other regulatory liabilitiedassefs. For the nonregulatcd portion of River Bend, Enkrgy GuIf Sfah Louisiana has recorded an offsetting amount of unrealized sainsl(losses) in other deferred credits. Decommissioning trust funds for Pilgrim, Indian Point 2, Vermont Yankee, and Palisades do not receive regulatory treatment. Accordingly, wealkad gains recorded on the assets in these trust funds are recognized in the accumulated other comprehensive income component of sharehoIders' equity because these assets are classified as available for sale. Unrcalizcd losses (where cost exceeds fair market va?ue) on the assets in these trust funds are also recorded in the accumulated other comprehensive income component of shareholders' equity d e s s the unrealized loss is other than temporary and therefore recorded in earnings. The assessment of whether an inveshent has suffered an other than temporary impairment is based on a number of factors including, ht, whether Entergy has the ability and intent to hold the investment to recover its value, the duration and severity of my losses, and, then, whether it is expected that the investment will recover its value within a reasonable period of time. See Note 17 to the financial statements for details on the decommissioning trust h d s and the other than temporary impairments recorded in 2008.

Derivative Financia1 Instrvmenfs and Cornmoditv Derivatives

1 1 Page 123.6

Name of Respondent

Entergy Arkansas, Ink

This Report is: (-I) X An Original (2) - A Resubmission

SFAS 133, “Accounting for Derivative Instruments and Hedging Activities,” requires that all derivatives be recognized in the balance sheet, either as assets or liabilities, at fair value, unless fhcy meet thc normal purchase, normal sales criteria. T h e changes in the fair value of recognized derivatives arc recorded each period in current eanings or other comprehensive income, depending on whether a derivative is designated as part of a hedge transaction and the type of hedge transaction.

Date of Report YearlPen’od of Report (Mo, Da, Yr)

0411712009 2IlOm4

Contracts for commodities that will be delivered in quantities expected to be used or sold in the ordinary come of business, including cerhin purchases and sales of power and fuel, are not classified as derivatives. These conbcts are exempted under the normal purchase, n o m 1 sales criteria of SFAS 133. Revenues and expenses Born these conhacts me reported on a gross basis in the appropriate revenue and expense categories as the commodities are received or delivered.

For other contracts for commodities in which Entergy is hedgbg the Variability of cash flows relatcd to a variable-rate asset, liability, or forecasted transactions that qualify as cash flow hedges, the changes in the fair value of such derivative instruments are reported in other comprehensive income. To qualify for hedge accounting, the relationship between the hedging instrument and the hedged item must be documented to incrude the risk management objective and strategy and, at inception and on an ongoing basis, the effectiveness of the hedge in offsetting the changcs in the cash flows of the item being hedged. Gains or losses accumulated in other comprehensive income are reclassified as eamir~gs in the periods in which earnings are affected by the variability of the cash flows of the hedged item. The ineffective portions of all hedges are recognized in current-period earnings.

Entergy has determined that contmcts to purchase uranium do not meet the definition of a derivative under SFAS 133 because they do not provide for net settlement and the uranium markets are not sufficiently liquid to conctude that fornard contracts are readily convmMe to cash. If the d u m markets do become sufficiently liquid in the fiture and Entergy begins to account for uranium purchase contracts as derivative instrrrments, the fair value of these contracts would be accounted for consistent with Entcrgy‘s other derivative instnunents.

Fair Values

The estimated fair values of Entergy’s financial instnrments and derivatives are determined using bid prices and market quotes. Considmble judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a c m t market exchange. Gains or losses realized on financial instruments held by reguIated businesses may be reflected in future rates and therefore do not accrue to the benefit or detriment of stockholders. Entergy considers the carrying amounts of most h a n c i d instruments classified as current assets and liabilities to be a reasonabIe estimate of their fair value because of the short maturity of these instruments. Effective January 1, 2008, Entergy and the Registrant Subsidiaries adopted Statement of Financial Accounting Standards No. 157, “Fair VaIue Measurements” (SFAS 157), which defines fair value, establishes a Mework for measuring fair value in GAAP, and expands disclosures about fair value masurements. SFAS 157 generally does not require any new fair value measurements. However, in some cases, the application of SFAS 157 in thc future may change Entergy‘s and the Registrant Subsidimks’ practice for measmhg and discIosing fair vaIues under other accounting pronouncements that require or permit fair value measurements. See Note 16 to the financial statements for a discussion of the implementation of SFAS 157.

Reacsnired Debt

The premiums and costs associated with reacquired debt of Entergy‘s Utility operating companies and System Energy (except that portion allocable to the deregulated operations of Entergy Gulf States Louisiana) are included in regulatory assets and are being amortized over the life of the. related new issuances, in accordance with ratemaking

IFERC FORM NO. 1 (ED. 12-88) Page 123.7 I

Name of Respondent This Report is: Date of Report (1 1 An Original (Mo, Da, Yr)

Entergy Mansas, Inc (2) - A Resubmission 0411712009

treatment .

YearlPeriod of Report

200WQ4

Taxes Imposed on RevenueProduciner Transactions

GovcrnmentaI authorities assess taxes &at are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer, induding, but not limited to, sales, use, value added, and some excise taxes. Entergy presents these taxes on a net basis, excluding them from revenues, unless required to report them differcntly by a regulatory authority.

New Accountinp Pronouncements

The FASB issued Statement of Financial Accounting Standards No. 141(R), "Business Combinations" (SFAS 141m)) during