PART II. METHODS USED IN

THE ESTIMATION OF DEPRECIATION

PART II. METHODS USED IN THE ESTIMATION OF DEPRECIATION

DEPRECIATION

Depreciation, as defined in the Uniform System of Accounts, is the loss in service

value not restored by current maintenance, incurred in connection with the consumption

or prospective retirement of electric plant in the c o m e of service from causes which are

known to be in current operation and againstwhich the utility is not protected by insurance.

Among the causes to be given consideiation are wear and tear, decay, action of the

elements, inadequacy, obsolescence, changes in fhe art, changes in demand and

requirements of public authorities.

Depreciation, as used in accounting, is a method of distributing fixed capital costs,

less net salvage, over a period of time by allocating annual amounts to expense. Each

annual amount of such depreciation expense is part of that year‘s totat cost of providing

utility service. Normally, the period of time over which t he fixed capital cost is allocated to

t h e cost of service is equal to the period of time over which an item renders service, that

is, the item’s service life. The most prevalent method of allocation is to distribute an equal

amount of cost to each year of service life. This method is known as t he straight line

method of depreciation.

The caiculation of annual depreciation based on the straight line method requires

the estimation of average life and salvage. These subjects are discussed in the sections

which follow.

11-2

SERVICE LIFE AND NET SALVAGE ESTIMATION

Averaqe Service Life

The use of an average service life for a property group implies that the various units

in the group have different lives. Thus, the average life may be obtained by determining

the separate lives of each of t h e units, or by constructing a survivor curve by plotting the

number of units which survive at successive ages. A discussion of the generat concept of

survivor curves is presented. Also, the Iowa type survivor curves are reviewed.

Survivor C uwes

The sunrivor C U I V ~ graphically depicts the amount of property existing at each age

throughout the life of an original group. From the survivor curve, the average life of the

group, t he remaining life expectancy, the probable life, and the frequency curve can be

calculated. In Figure 1, a typical smooth survivor curve and t he derived curves are

illustrated. The average life is obtained by calculating t he area under the survivor curve,

from age zero to the maximum age, and dividing this area by the ordinate at age zero. The

remaining life expectancy at any age can be calculated by obtaining the area under the

curve, from the observation age to the maximum age, and dividing this area by the percent

surviving at the observation age. For example, in Figure 1, the remaining life at age 30 is

equal to the crosshatched area under the survivor curve divided by 29.5 percent surviving

at age 30. The probabfe life at any age is developed by adding the age and remaining life.

tf the probable life of the property is calcufated for each year of age, t he probable life curve

shown in the chart can be developed. The frequency cuve presents the number of units

retired in each age interval and is derived by obtaining the differences between the amount

of property surviving at the beginning and at the end of each intenral.

11-3

Age In Years

Figure I. A Typical Survivor Curve and Derived Curves

Iowa TvDe Curves. The range of survivor characteristics usually experienced by

utility and industrial properties is encompassed by a system of generalized survivor a w e s

known as the Iowa type cuwes. There are four families in the Iowa system, labeled in

accordance with the location of the modes of the retirements in relationship to the average

life and the relative height ofthe modes. The left moded curves, presented in Figure 2, are

those in which the greatest frequency of retirement occurs to the left of, or prior to, average

service life. The symmetrical moded cuwes, presented in Figure 3, are those in which the

greatest frequency of retirement occurs at average service life. The right moded curves,

presented in Figure 4, are those in which the greatest frequency occurs to the right of, or

after, average service life. The origin moded curves, presented in Figure 5, are those in

which the greatest frequency of retirement occurs at the origin, or immediately after age

zero. The letter designation of each family of curves (L, S, R or 0) represents the location

of the mode of the associated frequency curve with respect to the average service life. The

numbers represent the relative heights of the modes of the frequency curves within each

family.

The Iowa c m e s were developed at the Iowa State College Engineering Experiment

Station through an extensive process of obsewation and classification of the ages at which

industrial property had been retired. A report of the study which resulted in the

classification of property survivor characteristics into 18 type curves, which constitute three

of the Four families, was published in 1935 in the form of the Experiment Station's Bultetin

125.' These type curves have also been presented in subsequent Experiment Statim

'Winfrey, Robley. Statistical AnaIvses of Industrial Proaertv Retirements. Iowa State College, Engineering Experiment Station, Bulletin 125. 1 935

II-5

0 0 0 0 0 0 0 0 0 0 o m Ql b to u3 v m tu F f

b 3

L 0

11-6

0 .r

0 0 0 0 0 m E\t

0 0 Q) r- tD u1 * 0 0

0 a, F

E E

f -t I

11-8

50 175 200 225 250 275 Age, Percent of Average Life

Figure 5. Origin Modal or "0" Iowa Type Survivor Curves

builetins and in the text, "Engineering Valuation and Depreciation."' In -I 957, Frank V. B.

Couch, Jr., an Iowa State College graduate student, submitted a thesis3 presenting his

development of the fourth family consisting of the four 0 type survivor curves.

Retirement Rate Method of Analvsis

The retirement rate method is an actuarial method of deriving survivor curves using

the average rates at which property of each age group is retired. The method relates to

property groups for which aged accounting experience is available or for which aged

accounting experience is developed by statistically aging unaged amounts and is the

method used to develop the original stub survivor curves in this study. The method (also

known as t he annual rate method) is illustrated through the use of an example in the

following text, and is aJso explained in several publications, including "Statistical Analyses

of Industrial Property Retirements,"' "Engineering Valuation and Depre~iation,"~ and

"Depreciation Systems."'

The average rate of retirement used in the calculation of the percent surviving far

t he survivor curve (life table) requires two sets of data: first, the property retired during a

period of observation, identified by the property's age at retirement; and second, the

property exposed to retirement at the beginnings of the age intervals during t h e same

'Marston, Anson, Robley Winfrey and Jean C. Hempstead. Enaineerinq Vafuation and Depreciation, 2nd Edition. New York, McGraw-Hill Book Company. 1953.

!Couch, Frank V. B., Jr. "Classification of Type 0 Retirement Characteristics of Industrial Property." Unpublished M.S. thesis (Engineering Valuation). Library, Iowa State College, Ames, Iowa. 1957.

4Winfrey, Robley, Supra Note 1..

%larsfon, Anson, Robley Winfrey, and Jean C. Hempstead, Supra Note 2.

'Wolf. Frank K. and W. Chester Fitch. Depreciation Systems. Iowa State University a Press. 1994

11-1 0

period. The period of observation is referred to as the experience band, and the band of

years which represent the installation dates of the property exposed to retirement during

the experience band is referred to as the placement band. An example of the calculations

used in the development of a life table follows. The example includes schedules of annual

aged property transactions, a schedule of plant exposed to retirement, a life table and

illustrations of smoothing the stub survivor curve.

Schedules of Annual Transactions in Plant Records. The property group used to

illustrate t he retirement rate method is observed for the experience band 1999-2008 during

which there were placements during the years j994-2008. In order to illustrate the

summation of the aged data by age interval, t he data were compiled in the manner

presented in Tables 1 and 2 on pages 11-12 and 11-13. In Table 1, the year of installation

(year placed) and the year of retirement are shown. The age interval during which a

retirement occurred is determined from this information. In the example which follows,

$10,000 of the dollars invested in 1994 were retired in 1999. The $10,000 retirement

occurred during the age interval between 4% and 5% years on fhe basis that approximately

one-half of the amount of property was installed prior to and subsequent to July 1 of each

year. That is, on the average. property installed during a year is placed in service at the

midpoint of the year for the purpose of the analysis. All retirements also are stated as

occurring at the midpoint of a one-year age interval of time, except the first age interval

which encompasses only one-half year. I

The total retirements occurring in each age interval in a band are determined by

summing the amounts for each transaction year-installation year combination for that age

11-1 1

TABLE 1. RETIREMENTS FOR EACH YEAR 1999-2008 SUMMARIZED BY AGE INTERVAL

Experience Band 1999-2008

I_-- Retirements. Thousands of DoIlars Year -- - Durinq Year

Placed 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (V (2) (3) (4) (5) (6 ) (7) (8) (9) (101 (1V

1994 1995 1996 1997

- 1998 2 I999 - I

N 200Q 2001 2002 2003 2004 2005 2006 2007 2008

Total

10 11 11 1 12 11 12

8 9 9 I O 4 9

5

68 - 53 c

12 13 14 16 23 24 25 26 13 15 16 18 20 21 22 19 13 PI 16 17 19 21 22 18

15 16 17 I 1 19. 20

14 75 16 20 14 15 16 18 20

10 I 1 12 1j 12 -I3 6 12 13

6 13 7 14

8

157 -

Placement Band 1994-2008

Total During Age

(1 2) (1 3) Interval Ase Interval

26 44 64

93 105 113 124 134 143

a3

16 17 I 9 18 20 22 23 146 3%4X 9 20 22 25 150 2'/2-3'/2

11 23 25 151 1 X-ZX! I 1 24 153 x-1 '/z - - 13 80 0-% - -

I96 231 273 - ==.=a 308 1,606 -

TABLE 2. OTHER TRANSACTIONS FOR EACH YEAR 1999-2008 SUMMARIZED BY AGE INTERVAL

Experience Band 2999-2008 Placement Band 1994 -2008

Acquisitions, Transfers and Sales, Thousands of Dollars Durinq Year Total During Age

(4 1 (2) I31 (4) (5) (6) (7) (8) (9) (W (11) (12) (1: 3)

Year - - Placed 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Aselntervai Interval

1994 1995 1996 1997 1998 - - I999 2000 2001 2002 2003 2004 2005 2006 2007 2008

2 W

13%-141/2 12%131/1 1 I K-l21/2 IO%-ll% 91/2-10% 8%-9?4 7 %-8 ?4 6%-7'/2 5?4-6?4 41/-51/2 3 5 4 % 2%-3 ?4 1 %-2% M-1 w 0-?4

60

(5) 6 1

- 22" -

Transfer Affecting Exposures at Beginning of Year Transfer Affecting Exposures at End of Year Sale with Continued Use

8

b

Parentheses denote Credit amount.

11-13

interval. For example, t he total of S143,OOO retired for age interval 4%5X is the sum of

t h e retirements entered on Table f immediately above the stairstep line drawn on the table

beginning with the 1999 retirements of 1994 installations and ending with the 2008

retirements of the 2003 installations. Thus, the tota1 amount of 143 forage interval 4%5%

equals the sum of:

1 0 + 12+ 7 3 + 11 + 13-t. 13+ 15+ 17+ 19+20.

In Table 2, other transactions which affect the group are recorded in a similar

manner. The entries illustrated include transfers and safes. The entries which are credits

to the plant account are shown in parentheses. The items recorded on this schedule are

not totaled with the retirements, but are used in developing the exposures at the beginning

of each age interval.

Schedule of Plant Exposed to Retirement. The development of the amount of plant

exposed to retirement at the beginning of each age interval is ilrustrated in Table 3 on page

11-1 5.

The surviving plant at the beginning of each year from 1999 through 2008 is

recorded by year in the portion of the table headed "Annual Survivors at the Beginning of

the Year." The last amount entered in each column is the amount of new plant added to

the group during the year. The amounts entered in Table 3 for each successive year

following the beginning baiance or addition are obtained by adding or subtracting the net

entries shown on Tables 1 and 2. For the purpose of determining the plant exposed to

retirement, transfers-in are considered as being exposed to retirement in this group at the

beqinnina of the year in which they occurred, and the sales and transfers-out are

considered to be removed from t he plant exposed to retirement at the besinninq of the

followinq vear.

11-14

TABLE 3. PLANT EXPOSED TO RETIREMENT JANUARY I OF EACH YEAR 1999-2008

SUMMARIZED BY AGE INTERVAL

530

Experience Band 1999-2008

50 I 482 3,057

Year Placed

(1)

1994 1995 1996 1997 1998 1999

1 2000 2001 2002 2003 2004 2005 2006 2007 2008

Total

- - I-L

u1

ExPosures, Thousands of Dollars Annual Survivors at the Besinninq of the Year

245 234 f95 239 216 I92 I 6i' 212 194 174 153 131

224 205 184 162 338 289 276 262 242 226 376 367 357 346 334 32 I 307 297 280 26 1

!i! , ii , E ~ 241

420" 436 407 397 460' 455 444

510' 504 580a

432 386 % 492 479 574 56 I 660" 653

750"

361 405 464L 546 639 742

Placement Band 1994-2008

Total at Beginning of Aqe Interval

(12)

167 323 531

823 1,097

347 332 316 1,503

850a 841 821 799 4,955 960a 949 926 5,719

1,080' 1,069 6,579 7 -490

94.780

Age

(13) Interval

13%-14% 12%- 13% 11%-12% f O W - l I % 9%-10%

8%-9?4 7%8X 6 X - 7 X 5X-GW 4%-5% 3%4X 2%3% 1 %-2% %-1 x 0-%

a Additions during the year

Thus, the amounts of plant shown at the beginning of each year are the amounts of plant

from each placement year considered to be exposed to retirement at the beginning of each

successive transaction year. For example, the exposures for the installation year 2003 are

calculated in the following manner:

Exposures at age 0 = amount of addition = $750,000 Exposures at age X = $750,000 - $8,000 = $742.000 Exposures at age 1 '/z = $742.000 - $1 8,000 = $724,000 Exposures at age 2% = $724,000 - $20,000 - $I 9,000 = $685,000 Exposures at age 3% = S685,OOO - $22,000 = $663,000

For the entire experience band 1999-2008, the total exposures at the beginning of

an age interval are obtained by summing diagonally in a manner similar to the summing

of the retirements during an age interval (Table I) . For example, the figure of 3,789, shown

as the total exposures at the beginning of age intenral 4%5%, is obtained by summing:

255+268+284+311+334+374+405+448+501+609.

Oriainal Life Table. The original life table, illustrated in Table 4 on page 11-47, is

developed from the totals shown on the schedules of retirements and exposures, Tables

1 and 3, respectively. The exposures at t he beginning ofthe age interval are obtained from

the corresponding age interval of t he exposure schedule, and the retirements during the

age interval are obtained from the corresponding age interval of the retirement schedule.

The retirement ratio is t he result of dividing the retirements during the age interval by the

exposures at the beginning of the age interval. The percent surviving at the beginning of

11-16

TABLE 4. ORIGINAL LIFE TABLE CALCULATED BY THE RETIREMENT RATE METHOD

Experience Band 1999-2008 Placement Band 1994-2008

(Exposure and Retirement Amounts are in Thousands of Dollars)

Percent Age at Exposures at Retirements Surviving at

Beginning of Beginning of During Age Retirement S u nrivor Beginning of Interval Aqe Interval I ntemal Ratio Rat io Aqe Interval

(1) (2) (3) (4) (5) (6)

0.0 0.5 1.5 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.5 11.5 12.5 13.5

Total

7,490 6,579 5,719 4,955 4,332

3,057 2,463 1,952 4,503 1,097 823 531 323 I67

3,789

44,780

80 153 151 -l50 146 143 131 124 113 I 0 5 93 03 64 44 26 -

0.01 07 0.0233 0.0264 0.0303 0.0337 0.0377 0.0429 0.0503 0.0579 0.0699 0.0848 0.1 009 0.1205 0.1 362 0.1557

0.9893 0.9767 0.9736 0.9697 0.9663 0.9623 0.9571 0.9497 0.9421 0.9301 0.9152 0.8991 0.8795

0.8443 0.8638

100.00 98.93 96.62 94.07 91.22 88.15 84.83 81.19 77.1 1 72.65 67.57 61.84 55.60 48.90 42.24 35.66

Column 2 from Table 3. Column 12, Plant Exposed to Retirement. Column 3 from Table 1, Column 12, Retirements for Each Year. Column 4 = Column 3 divided by Column 2. Column 5 = 1.0000 minus Column 4. Column 6 = Column 5 multiplied by Column 6 as of the Preceding Age Interval.

each age interval is derived from survivor ratios, each of which equals one minus the

retirement ratio. The percent surviving is developed by starting with 100% at age zero and

successively multiplying the percent surviving at the beginning of each interval by the

survivor ratio, Le., one minus the retirement ratio for that age interval. The calculations

necessary to determine the percent surviving at age 5% are as follows:

88.15 Percent suwiving at age 4% Exposures at age 4% = 3,789,000 Retirements from age 4% to 5% = 143,000 Retirement Ratio = 143,000 +3,789,000 = 0.0377 SurVivor Ratio - Percent surviving at age 5% = (88.15) x (0.9623) = 84.83

- -

1.000 - 0.0377 = 0.9623 -

The totals of the exposures and retirements (columns 2 and 3) are shown for the

purpose of checking with the respective totals in Tables 1 and 3. The ratio of the total

retirements to the total exposures, other than for each age interval, is meaningless.

The original survivor curve is plotted from the original life table (column 6, Table 4).

When the curve terminates at a percent surviving greater than zero, it is called a stub

survivor curve. Survivor curves developed from retirement rate studies generally are stub

curves.

Smoothins the Oricrinal Survivor Curve. The smoothing of t h e original survivor curve

eliminates any irregularities and serves as the basis for the preliminary extrapolation to

zero percent surviving of the original stub curve. Even if the original survivar curve is

complete from 100% to zero percent. it is desirable to eliminate any irregularities, as there

Is still an extrapofation for the vintages which have not yet lived to the age at which the

curve reaches zero percent. In this study, the smoothing of the original curve with estab-

lished type CUMS was used to eliminate irregularities in the original curve.

The Iowa type curves are used in this study to smooth those original stub curves

which are expressed as percents sunriving at ages in years. Each original survivor curve

was compared to the Iowa curves using visua[ and mathematical matching in order to

determine the better fitting smooth curves. In Figures 6 , 7 . and 8, t he original curve

developed in Table 4 is compared with the L, S, and R Iowa type curves which most nearly

fit the original survivor curve. In Figure 6, the L1 curve with an average fife between 12 and

13 years appears to be the best fit. In Figure 7, the SO type curve with a 12-year average

life appears to be the best fit and appears to be better than the L l fitting. In Figure 8, the

R1 type curve with a 12-year average life appears to be t he best fit and appears to be

better than either the L I or the SO. In Figure 9, the three fittings, 12-11, 12-50 and 12431

are drawn for comparison purposes. It is probable that the 12-R1 Iowa curve would be

selected as the most representative of the plotted suwivor characteristics of the group,

assuming no contrary relevant factors external to the analysis of historical data.

Field Trip

In order to be familiar with the operation of the Company and to observe

representative portions of the pfant, a field trip was conducted. A general understanding

of the function ofthe plant and information with respect to the reasons for past retirements

and the expected future causes of retirements was obtained during this trip. This

knowtedge and information were incorporated in the interpretation and extrapolation of the

statistical analyses.

The plant facilities visited on May 1 7 and 12, 2009 are as follows:

11-19

11-20

11-21

11-22

11-23

Mav 11 and 12.2009 Little RocWAlexander Substation M abelva le Substation Mabelvale Gas Turbines White Bluffs Generating Station White Bluffs Substation

Service Life Considerations

The service life estimates were based on judgment which considered a number of

factors. The primary factors were the statistical analyses of data; current company policies

and outlook as determined during field reviews of t h e property and other conversations with

management; and the survivor curve estimates from previous studies of this company and

other electric utility companies.

For many accounts and subaccounfs, the statistical analysis resulted in good to

excellent indications of complete survivor patterns. These accounts represent 82% of the

depreciable plant studied. Generally, the information external to the statistics led to no

significant departure from the indicated survivor curves for the accounts listed below:

Account No. Account Description STEAM PRODUCTION PLANT

31 1 Structures and Improvements 312 Boiler Plant Equipment

NUCLEAR PLANT 321 Structures and Improvements 322 Reactor Plant Equipment 325 Miscellaneous Power Plant Equipment

TRANSMISSION PLANT 353 Stafion Equipment 354 Towers and Fixtures 355 Poles and Fixtures 356 Overhead Conductors and Devices

11-24

DlSTRl BUTION PLANT 362 Station Equipment 364 Poles, Towers and Fixtures 365 Overhead Conductors and Devices 366 Underground Conduit 367 Underground Conductors and Devices 368.1 Line Transformers 369.1 Services - Overhead 369.2 Services - Underground 370 Meters 373 Street Lighting and Signal Systems

GENERAL PLANT 390 StructurFs and Improvements

Two of the largest mass accounts, 353 and 364, are used to illustrate the manner

in which the study was conducted for the accounts in the preceding list. Aged plant

accounting data have been compiled for the years through 2008. These data have been

coded according to account or property group, type of transaction, year in which the

transaction took place and year in which the utility plant was placed in service. The

retirements, other plant transactions and plant additions were analyzed by the retirement

rate method.

The survivor CUM estimate for Account 353, Station Equipment, is t he 51 -R2 and

is based on the statistical indication for the period I987 through 2008. The 51-R2 is a very

good fit of the significant portion of the original survivor curve as set forth on page 111-83

and consistent with management outlook for a continuation of the historical experience,

and within the typical service life range of 40 to 55 years for station equipment

The survivor curve estimate for Account 364, Poles, Towers and Fixtures. is the 35-

R0.5 and is based on t he statistical indication for the period 1996 through 2008 . The 35-

R0.5 is an excellent fit of the significant portion of the original survivor curve as set forth

11-25

on page 111-1 13 and consistent with management outlook for a continuation of historical

experience, and within the typical service life range of 30 to 50 years for distribution poles.

Inasmuch as production plant consists of large generating units, the life span

technique was employed in conjunction with the use of interim survivor curves which reflect

interim retirements that occur prior to the ultimate retirement of t h e major unit. An interim

survivor curve was estimated for each plant account, inasmuch as the rate of interim

retirements differ from account to account. The interim survivor ewes estimated for

steam and other production plant related to Entergy Arkansas, Inc. stations were based

on t he retirement rate method.

The life span estimates for power generating stations were the result of considering

experienced life spans of similar generating units, the age of surviving units, general

operating characteristics of the units, major refurbishing, and discussions with

management personnel concerning the probable long-term outlook for the units. Final

decisions as to date of retirement will be determined by management on a unit by unit

basis.

The life span estimate for the coal-fired, base-load units is 60 years and the gas

fired, base-load units is 47 to 67 years, which are within the typical range of life spans for

such units. The 60-year life span estimate applies to almost all the steam units. The life

span for the nuclear facility is based on the license date. The life spans for the hydro

facilities are 120 and 127 years. Life spans of 30 to 45 years were estimated for t he

combustion turbines. These life span estimates are typical for cornbusfion turbines which

are used primarily as peaking units.

A summary of the year in service, fife span and probable retirement year for each

power production unit, follows:

11-26

Depreciable Group

STmM PRODUCTION PLANT White Bluffs Unit 1 White Sluffs Unit 2 Couch Unit 'I Couch Unit 2 Independence Unit 1 Lake Catherine Unit 1 Lake Catherine Unit 2 Lake Catherine Unit 3 Lake Catherine Unit 4 lynch Unit Lynch Unit 2 Lynch Unit 3 Moses Unit 1 Moses Unit 2 Ritchie Unit 1

NUCLEAR PUNT Arkansas Unit 1 Arkansas Unit 2

HYDRO PLANT Carpenfer Unit 1 Carpenter Unit 2 Remmel Unit 1 Remmel Unit 2 Remmel Unit 3

Year in Service

1980 1981 1943 3 954 7 983 1950 1950 1953 1970 1947 1949 1954 1951 1951 1961

1974 1980

I932 1932 1925 1925 1925

Probable Retirement

Year

2040 204 1 201 0 2015 2043 2017 2077 201 7 2017 2010 201 0 2015 201 6 2016 201 0

2034 2038

2052 2052 2052 2052 2052

Life SDan

60 60 67 61

60 67 67 64

47 63 61 61 65 65 49

60 58

120 120 127 127 'I 2 i

11-27

Depreciable Groua

OTHER PRODUCTION PLANT

Ouachita Unit 1 Ouachita Unit 2 Ouachita Unit 3 Ritchie Gas Turbine Unit 3 Mabelvale Gas Turbine Unit 1 Mabefvale Gas Turbine Unit 2 Mabelvale Gas Turbine Unit 3 Mabelvale Gas Turbine Unit 4

Year in Service

2004 2004 2004 1970 1970 1970 1970 1970

Probable Retirement

Year

2034 2034 2034 201 5 201 0 2010 2070 201 0

Life Span

30 30 30 45 40 40 40 40

GeneralIy, the survivor curve estimates for the remaining accounts which comprise

18 percent of the total depreciable plant in service were based on judgments which

considered the statistical analyses, the nature of the plant and equipment, the previous

estimate for this company and a general knowledge of service lives for similar equipment

in other electric companies.

Salvaqe Analvsis

The estimates of net salvage by account were based in part on historical data

compiled by account through 2008. Cost of removal and salvage were expressed as

percents of the original cost of plant retired, bofh on annual and three-year moving average

bases. The most recent five-year average also was calculated for consideration. The net

salvage estimates by account are expressed as a percent of .the original cost of plant

retired.

11-28

Net SaIvaqe Considerations

The estimates of future net salvage are expressed as percentages of surviving plant

in service, Le., all future retirements. In cases in which removal costs are expected to

exceed salvage receipts, a negative net salvage percentage is estimated. The net salvage

estimates were based on judgment which incorporated analyses of historical cost of

removal and salvage data, expectations with respect to future removal requirements and

markets for retired equipment and materials.

The analyses of historical cost of removal and salvage data are presented in the

section titled “Net Salvage Statistics” for the plant accounts for which the net salvage

estimates relied partiaIly on those analyses.

Statistical analyses of historical data for the period 2004 through 2008 for electric

plant were analyzed. The anaIyses contributed significantly toward the net salvage

estimates for 14 plant accounts, representing 35 percent of the depreciable plant, as

follows:

Hydro Plant 333 Waterwheels, Turbines and Generators

Other Production Plant 345 Accessory Electric Equipment

Transmission Plant 352 Structures and Improvemenfs 353 Station Equipment 355 Poles and Fixtures 356 Overhead Conductors and Devices

Distribution Plant 36 I Structures and Improvements 362 Station Equipment 364 Poles, Towers and Fixtures 365 Overhead Conductors and Devices 367 Underground Conductors and Devices 371 Installations on Customers’ Premises 373 Street Lighting and Signal Systems

11-29

General Plant 390 Structures and Improvements

The analysis for Account 365, Overhead Conductors and Devices. is used to

illustrate the manner in which the study was conducted for t h e groups in the preceding list.

Net salvage data for the period 2004 through 2008 were analyzed for this account. The

data include cost of removal, gross salvage and net salvage amounts and each of these

amounts is expressed as a percent of the original cost of regular retirements. Three-year

moving averages for the 2004-2006 through 2006-2008 periods were computed to smooth

t he annual amounts.

Cost of removal was relatively consistent throughout the period. The year with lower

cost of removal was a result of a lag in booking removal of poles. Cost of removal for the

five-year period averaged 19 percent.

Gross salvage was high for the first few years of t he period but has diminished to

t he more anticipated level of 5 percent. The most recent five-year average of 9 percent

gross salvage reflects recent trends and the reduced market for conductor.

The net salvage percent based on the period, 2004 through 2008 is 10 percent

negative net salvage. The range of estimates made by other electric companies for

Overhead Conductors and Devices is negative IO to negative 30 percent. The net salvage

estimate for overhead conductor is negative 10 percent, is within the range of other

estimates and reflects the statistical analyses set forth in recent years,

The net salvage estimates for steam production plant reflect estimated

decommissioning costs associated with each generating station. The decommissioning

cost estimate for each steam production unit was based on the results of a least-squares

regression analysis of decommissioning cost data for power plants operated by other

11-30

eIectric utilities. The regression analysis correlated the decommissioning costs

experienced and estimated by other etectric utilities with the size of the generating station,

in megawatts (MW). The regression equation determines values for the dependent

variable, Le.. decommissioning costs, at every given value for the independent variable,

Le., MW. The estimated decommissioning cost for each of Entergy Arkansas generating

stations was determined through the application of the regression equation to the MW

values of each unit. The dollars were trended to the probable retirement year based on

a 3 percent rate of inflation. The resuItant estimated decommissioning costs were then

expressed as a percent of the original cost of the plant in service as of December 31,2008.

As an example, the net salvage estimate for the Ritchie Unit was developed from

the decommissioning cost per kilowatt of $33.41 as determined from the regression

equation and the nameplate 356 M W capacity of t he unit. Multiplying $33.41 per kilowatt

by 356,000 kilowatts produces €he estimated decommissioning costs of $-I 'I ,893,960.

Trending this amount to the year 2010 at a rate of 3 percent per year results in the

estimated decommissioning cosfs of $1 2,618,302 which is 25.29 percent of the original

cost of the Ritchie Unit as of December 31,2008. This percent was rounded to 25 percent

for the purposes of calculating the annual depreciation accrual rates. A table for all steam

production facilities is set forth in the "Net Salvage Statistics" section of this report.

The net salvage percents for the remainjng accounts representing 53 percent of

plant were based on judgment incorporating estimates of previous studies of this and other

electric utilities.

11-31

CALCULATION OF ANNUAL AND ACCRUED DEPRECIATION

After the survivor curve and saJvage are estimated, the annual depreciation accrual

rate can be calculated. In the average service life procedure, the annual accrual rate is

computed by the following equation:

(100% - Net Salvage, Percent) Average Service Life

Annual Accrual Rate, Percent =

The calculated accrued depreciation for each depreciable property group represents that

portion of the depreciable cost of the group which will not be allocated to expense through

future depreciation accruals, if current forecasts of life characteristics are used as a basis

for straight line depreciation accounting.

The accrued depreciation calculation consists of applying an appropriate ratio to the

surviving original cost of each vintage of each account, based upon the attained age and

the estimated survivor cufve. The accrued depreciation ratios are calculated as follows:

Average Remaining Life Expectancy (, Net Salvage, perceno. Ratio = (1 - Average Service Life

The application of these procedures is described for a single unit of property and a group

of property units. Salvage is omitted from the description for ease of application.

Sinqle Unit of Propem

The calculation of sfraight fine depreciation for a single unit of property is straightforward.

For example, i f a $1,000 unit of property attains an age of four years and has a life

expectancy of six years, the annual accrual over the total life is:

$‘uooo = $100 per year. (4 6)

13-32

The accrued depreciation is:

6 10

S1,OOO (I - -) = $400.

Grow Deareciation Procedures

When more than a single item of property is under consideration, a group procedure

for depreciation is appropriate because normally all of the items within a group do not have

identical service lives, but have lives that are dispersed over a range of time. There are

two primary group procedures, namely, average seivice life and equal life group.

Averase Service Life Procedure. In the average service life procedure, €he rate of

annual depreciation is based on the average service Jife of the group, and this rate is

applied to t he surviving balances of the group's cost. The accrued depreciation is based

on the average sewice life of the group and the average remaining life of each vintage

within the group derived from the area under t h e sunrivor curve between the attained age

of the vintage and the maximum age,

A characteristic of this procedure is that the cost of plant retired prior to average life

is not fully recouped at the time of retirement, whereas the cost of plant retired subsequent

to average life is more than fully recouped. Over the entire life cycle, the portion of cost

not recouped prior to average life is balanced by the excess cost recouped subsequent to

average life, The recovery of cost is complete at t h e end of the life cycle, but the

distribution of capital cost to annual expense does not match the consumption of service

value of plant.

Eaual Life Group Procedure. In the equaf life group procedure, also known as the

unit summation procedure, the property group is subdivided according to service life. That

is, each equal life group includes that portion of the property which experiences the life of

11-33

that specific group. The relative size of each equal life group is determined from the

property's life dispersion curve. The calcufated depreciation for the property group is the

summation of the calculated depreciation based on the service life of each equal life unit.

This procedure eliminates the need to base annual depreciation expense on

average lives, inasmuch as each group has a single life. The full cost of short-lived items

is accrued during their fives. leaving no deferral of accruals required to be added to the

annual cost associated with long-lived items. The depreciation expense for the property

group is the summation of the depreciation expense based on the service life of each equal

life group.

The table OR the following page presents an illustration of calculation of equal Iife

group depreciation using the Iowa 15L2.5 sunrivor curve, net salvage of 0 percent and a

December 31, 2008 calculation date.

In the table, each equal life group is defined by the age interval shown in columns

1 and 2. These are the ages at which fhe first and last retirement of each group occur, and

t he group's equal life, shown in column 3, is the midpoint of the interval. For purposes of

the calculation, the computer is programmed to divide each vintage into equal life groups

arranged so that the midpoint of each one-year age interval coincides with the calculation

date, e.g., December 31 in this case. This enables t he calculation of annual accruals for

a twelve-month period centered on the date of calculation.

The retirement during the age interval. shown in column 4, is the size of each

equal Iife group, and is derived from the Iowa 1542.5 survivor curve. It is the difference

between the percents surviving at the beginning and end of the age interval.

11-34

DETAILED COMPUTATION OF ANNUAL AND ACCRUED FACTOFlS USlNG THE EQUAL LIFE GROUP PROCEDURE

INPUT PARAMETERS CALCUtATlON DATE. 12-31-2008 SURVIVOR CURVE. 15-t.2 5

RETIREMENTS GROUP SUMMATION AVERAGE AGE INTERVAL DURING ANNUAL Y M OF ANNUAL PERCENT ANNUAL ACCRUED BEG 11)

0 000 1000 2.000 3 000 4 000 5 000 6 000 7 000 8 000 9 000

to 000 11 OM1 12 000 13 (lo0 14 000 15.000 16.000 17 000 18 O D 0 19.000 20 000 21 000 22.00Q 23.000 24.OClQ 25.000 26 000 27.0M) 28.000 29.000 30.000 31.000 32.000 33.000 34 000 35.000

37 MI0 38 000 39 000 40 000 41 000 42 000

x a o o

T

END LIFE INTERVAL ACCRUAL 12) 13) (4) !53=(14)43)

1 000 0 5Do 0 01733 0.01733000000 2 000 fSM1 0 11237 0 07491333333 3 000 2.500 0 30563 0.12225200OOO 4 000 3 500 0 59954 0.17129714286

6 000 5.500 1.45100 0.26381818182 7.000 6.500 2. 16752 0.33346461538

9.000 8.500 4 26516 0.50178352941 10.000 9.500 5.52878 0.5819768421 1 11.000 10.500 6.70720 0.63878095238 12 OW t 1.500 7.50363 0.65944608696

14.000 13.5IJO 7.84663 0.58123185185 15.000 14.505 7 30330 0.50367586207 16.000 15.500 6.51957 0.42061741935 17.000 16 500 5.60743 0.34469272727 18.000 17.500 4.92347 0.28134114286 19.000 18 500 4.26989 0.23080486486 20.000 19.500 3.73333 0.19145282051 21.000 20.500 3.28189 0.16009219512 22.000 21 500 2.87965 0 133g3720930 23.000 22.500 2.51203 0 11 164577778 24.000 23.500 2.16472 0.09211574468 25.000 24.500 1.83184 0.07476897959

27.000 26.5M1 1.23489 0.04659962264

29.000 28.500 0.75109 0.02635403509 30.000 29.500 0.56131 0.01902745763 3t.000 30.500 0.40524 0.01328983607

33.000 32.500 0.19283 0.00593323077 34.000 33.500 0.12681 0.00378537313

36.000 35.500 0.05076 0.001429B5915

38.000 37.500 0.01579 0.00042106667 39.000 35.500 0.00734 0.00019W935

41 000 40.500 0.00077 0.00001401235 42.000 41 500 0.0MHI 0.00000265060 42.150 42.075 0.00001 0 00000023767

5 ooo 4 500 o 97051 0.215fifiamam

a.000 7.500 3.t1752 0.41566933333

13 aoo t2.m 7.97835 o.6~az6~oaooo

26 ooo 25.500 1 .52103 o.oiiwa23529

28.000 27.500 0.97565 0.03~7818182

32.000 3; .m 0.28403 0.00901682540

35.000 34.500 0.0a153 0.0023631a~41

37.000 36.5~0 0.02965 0.00oamzan

40.000 39.500 0.00277 o o o o o m 2 6 ~ a

'OTAL 100 0c000

lNST ACCRUALS (6) (7)

2 ~ 0 a r 9a5487419t0

zoo6 7 a 3 2 i i a m n

2004 7 491a6049846

2001 6 57a90859015

2007 793070075243

2005 7 6853351434

2003 725211696311 2002 6 95347556451

2000 6.12018215870 1999 5.57830191302 1998 4,96792307578 1997 4.31880955611 1996 3.66995251263 1995 3.06020258670 1994 2.51774872974 1993 2.05560200903 1992 1.67294701 572 1991 1.35993O08066 1990 1.10385107680 1989 0.a9272a2341 I m a 0 . 7 i 6 m 7 2 6 3 ~ 1987 0.569941 02409 1986 0.44714953055 19B5 0.34526876932

1983 0.19461 779974

1951 0.10045496855 1980 0.06953886009 1979 0.O4684811373 1978 0.03068946680 1977 0.019536t3615 1976 001206110806 1975 0.007201 8061 1 1974 0.00412752534 1973 0.00223f00156 1972 0.001 10990760

1 984 0.261a264071 a

1962 0.141493airo7a

1971 0.000493209a8 is70 a.ooo1 a7351 87 1969 0.00005696391 1968 0.00001239444 1967 0.00OMH 56297 1966 0.00000001 783

SURVIVING (8)

99 995337 99.92E483 99.7 17484 99,264901

97.269 120 95.459859 92.81 2-40 89.126001 84 229031 78.1 1 to42 70.965626 63.184635 55.2721 46

ga.479~76

47.5971 a i 40.785744

24.7aoi i 5

17.27oa97

1t.4942a6 9.15sgoa 7 1 m 2 a

34.682242 29.376794

20,778507

14,190128

5.481 192 4.103234 2.997964 2.134593

0.995060

0.41 1958 0.2521 34 0.147963 0.081 819 Q.041616

O.OD7331 0.002274 0.000502 0.000064 0.00000 t

I 478395

Q 6x1386

0.01 a897

FACTOR (9)

0 0799 0 0794 0 0785 0,0774 0 0761 0.0746 0.0728 0.0709

0.0662 0.0636 0.0609 0.0581 0.0554 0.0528 0.0504 0.0482 0.0463 0.0445 0.0430 0.0415 0.0402 0.0389 0.0377 0.0366 0.0355 0.0345 0.0335 0.0326 0.0317 0.0308 0.0300 0.0243 0.0286 0.0279 0.0273 0.0267 0.0261 0.0256 0.0251 0.0247 0.0000 0.oM)o

0.0687

FACTOR (101

0 4400 0 1 t91 0.1963 0.2709 0.3425 0.4103 0.4732 0 5318 0 5840 0.6289 0.6678 0.7004 0.7263 0.7479 0.7656 0.7812 0.7953 0.8103 0.8233 0.8385 0.8508 0.8643 0.8753 0.8860 0.8967 0.9053 0.91 43 0.9213 0.9291 0 9352 0.9394 0.9450 0.9523 0 9581 0 9626 0 9592 0.9746 0 9788 0.9856 0.9915 1 ouoo 10000 1 .oooo

Each equal life group's annual accruaf, shown in column 5, equals the group's size

(column 4) divided by Its life (column 3) and multiplied by t h e quantity one minus the net

salvage percent with the exception of 2008 installations. For 2008 installations, the group

annual accrual is equal to the retiremenfs during the intewal multiplied by one minus the

net salvage percent.

IC35

Columns 6 through 10 show the derivation of the annual factor and accrued factor

for each vintage based on the information developed in the first five columns. The year

installed is shown in column 6. Far all vintages other than 2008, the summation of annual

accruals for each year installed, shown in column 7, is calculated by adding one-half of the

group annual accrual (column 5) for that vintage's current age interval plus the group

annual accruals for all succeeding age intervals. For example, the figure 7.93070075243

for 2007 equaIs one-half of 0.07491 333333 plus all of the succeeding figures in column 5.

Only one-half of the annual accrual for the vintage's current age interval group is included

in the summation because the equal life group for that interval has reached the year during

which it is expected to be retired.

The summation of annual accruals (column 7) for installations during 2008 are

calculated on the basis of an in-service date at the midpoint of the year, Le., June 30.

Inasmuch as the overall calculation is centered on December 31,2008, the first figure in

column 7, for vintage 2008, equals ali of the group annual accrual for the first equal life

group pfus the accruals for all of the subsequent equal life groups.

The average percent surviving, derived from the Iowa 15-L2.5 survivor curve, is

shown in column 8 for each age interval. The annual factor, shown in column 9, is the

result of dividing t he summation of annual accruals (column 7) by t he average percent

surviving (column 8).

The accrued factor. shown in column I O . equals the annual factor multiplied by t he

age of the group at December 31,2008.

REMAINING LfFE ANNUAL ACCRUAL RATES

The annual depreciafion accrual rates are calculated as of December 31,2008, and

based on the straight line remaining life method using the equal life group procedure. For

11-36

the purpose of calculating the composite remaining life accrual rates as of December 31,

2008, the book reserve for each plant account is allocated among vintages In proportion

to the calculated accrued depreciation for the account as of December 31, 2008. The

remaining life annual accrual for each vintage is determined by dividing future book

accruals {original cast less book reserve) by the composite remaining life for the surviving

original cost of that vintage. The composite remaining life is derived by cornpositing the

individual equal life group remaining lives in accordance with the following equation:

(Book Cost x Remaining Life)

Book Cost Life Composite Remaining Life =

Life

The book cosfs and lives of the several equal life groups which are summed in the

foregoing equation are defined by the estimated future survivor curve.

Inasmuch as book cost divided by life equals the whofe fife annuaf accrual, €he

foregoing equation reduces to the following form:

Composite Remaining Life = Whole Life Future Accruals Whole Life Annual Accruals

Book Cost - Calc. Reserve Whole Life Annual Accnial

Composite Remaining Life =

The composite remaining life calculations were made using computer software that utilizes

detailed ELG calculations of whole life future accruals and annual accruals in order to

derive the vintage composite remaining lives. The annual accrual rate for each account

is equal to the sum of the remaining life annuaI accruals divided by the total originaf cost.

11-37

The composite remaining life is calculated by dividing the sum of the future book accruals

by the SUM of the remaining life annual accruals.

CALCULATION OF ANNUAL AND ACCRUED AMORTIZATION

Amortization is the gradual extinguishment of an amount in an account by

distributing such amount over a fixed period over the life of the asset or liability to which

it applies, or over the period during which it is anticipated the benefit will be realized.

Normally. the distribution of the amount is in equal amounts to each year of the

amortization period.

The calculation of annual and accrued amortization requires the selection of an

amortization period. The amortization periods used in this report were based on judgment

which incorporated a consideration of the period during which t he assets will render most

of their service, the amortization period and service lives used by other utilities and the

service life estimates previously used for the asset under depreciation accounting.

Amortization accounting is proposed for certain General Plant accounts that

represent numerous units of property, but a very small portion of depreciable electric plant

in service. The accounts and their amortization periods are as follows:

Account

ELECTRIC PLANT 391.9 Office Furniture and Equipment 391.2 391.3

393 Stores Equipment 394 395 Laboratory Equipment 397.1 Communication Equipment 397.2 Communication Equipment - Microwave 398 Miscellaneous Equipment

Office Furniture and Equipment - Info Sys Office Furniture and Equipment -

Tools, Shop and Garage Equipment

Data Handling Equipment

Amortization Period, Years

20 5

15 15 15 10 i o 15 10

11-38

The calculated accrued amortization is equal to the original cost multiplied by the

ratio of the vintage's age to its amortization period. The annual amortization amount is

determined by dividing the original cost by the period of amortization far the account.

11-39

111-1 PART 111. RESULTS OF STUDY

I I

I

I I

I I

I I I

PART Ill. RESULTS OF STUDY

QUALIFICATION OF RESULTS

The calculated annual depreciation accrual rates are the principal results of the

study. Continued surveillance and periodic revisions are normally required to maintain

continued use of appropriate annual depreciation accrual rates. An assumption that

accrual rates can remain unchanged over a long period of time implies a disregard for the

inherent variability in service lives and salvage and for the change of the composition of

property in service. The annual accrual rates were calculated in accordance with the

straight line remaining life method of depreciation using the equal life group procedure

based on estimates which reflect considerations of current historical evidence and

expected future conditions.

The annual depreciation accruaf rates are applicable specifically to the electric plant

in service as of December 31,2008. For most plant accounts, t h e application of such rates

to future balances that reflect additions subsequent to December 31,2008, is reasonable

for a period of three to five years.

DESCRIPTION OF STATISTICAL SUPPORT

The service life and salvage estimates were based on judgment which incorporated

statistical analyses of retirement data, discussions with management and consideration of

estimates made for other electric utility companies. The results of the statistical analyses

of sewice fife are presented in the section titled "Service Life Statistics".

The estimafed survivor cuwes for each account are presented in graphical form.

The charts depict the estimated smooth survivor curve and original survivor curve(s), when

appficable, related to each specific group. For groups where t h e original survivor curve

was plotted, the calculation of the original life table is also presented.

111-2

The analyses of salvage data are presented in the section titled, “Net Salvage

Statistics”. The tabulations present annual cost of removal and salvage data, three-year

moving averages and the mast recent five-year average. Data are shown in dollars and

as percentages of original costs retired.

DESCRIPTION OF DEPRECIATION TA8UlATIONS

A summary of the results of the study, as applied to the original cost of electric plant

as of December 31, 2008, is presented on pages 111-4 through 111-1 I of this report. The

schedule sets forth the original cost, the book reserve, future accruals, the calculated

annual depreciation rate and amount, and the composite remaining life related to electric

plant.

The tables of the calculated annual depreciation accruaIs are presented in account

sequence in t he section titled “Depreciation Calculations.” The tables indicate the

estimated survivor curve and salvage percent for the account and set forth for each

installation year the original cost, the calculated accrued depreciation, the allocated hook

resenre, future accruals, the remaining life and the calculated annual accrual amount.

If 1-3

ENERGY ARI(AHSAS.lHC.

SUMMARY OF ESTIMATED SURVIVOR CURVES. NET SALVAGE. ORIGINAL COST. BOOK RESEnVE AND CALCULATED AHHUAl DEPAEClAflON RATES AS OF DECEMBER 31.2WE

NET SURVIVOR SALVAGE ORIGINAL BOOK FUTURE

CURVE PERCENT COST RE s E A v E ACCRUALS (61

I____ ACCOg.NT -- :1 i I21 (31 I41

STEAM wtooucnm u r n

f5.W 5 7 5 4 2 5 7CR2 5 ICRZ 5 7 5 4 2 5 75 R2 5 75-A2 5 7s.m 5 75R2 5 15 R2 5 3542 5 15.m 5 7 5 4 2 5 f S R 2 5 7 5 4 2 5 7CR2 5 75R2 5 35.w 5 75R2 5 3 5 4 2 5 3 5 4 2 5

Jfro6odas

B 975 092 10 032 612 a7 832692%

17C651269 340 073 53

i o 8 5 5 3 ~ t9 97075167

1 339.03ae9 1.124 033 76 1.137 52399 1.257 394 $6 4 675 6E Q0 1,379 850 07 1 101,447 75 1,33336992 2.051 OH2 85

488 94064 138401815 t 36;19=6? 2.471 624 35 1.844,01116

83.434 m5 40

34368w51

45.163 9?0 46 I 3 5 607.255 37 Ilf.lZ7.tO3 14

27 21928 1 !12M944

163836592? 72 216 093 09

421 w4 27 2 493 451 45 2.251 €41 20 5 575 712 40

5pmv83 3580125d6

lB1769004 2&1047346 2.895 551 35 779.346 59

a 142 191 u

2 4 9 3 o o a i ~ e

0.1u.zfe 39

m.t75~53 83

418 181 031 t o

1 435 u s 20 IN2 430 5.653 747

MQ 284 89f J10

1 694 %39 284.244

7 BYt.841 750w1 109.227

1 516 9 9 1.534 6% f 520524 5.272078

2 9 6 x 4 1 347 967 1.641 601 2 51 1 3 7

194952 1699844 1 669 225 2.718.744 t 668.m

71 409057

4509589 W639CH

17 395

7 900 359 11509819 51 477 Z%

361.7U ZY1443t 2.457 nj? 5031 ?&3 26.585 700

55 141 2.079 Sl 0.136.972

339.-

3 505.546 4421.704

20919.54t

319.350.102

a5 101 igo

1 089 a46

3548080

CALCULATED COMPOSlfE

81 3111

84 O X 5s 781

Bb m 4,459

1U.oM I? 540

120 023 6- 6 919

lSo7Be 240 076 91 EO lt592G 35 83U 61 541 21 690 21 331 2s t i 8 4IQ El73

26T31091

423 381

$18 $52

29.m3

I v 9 853 2 579074 2220 1%

2 870 2b3 122 J'fr6.46 241 877

1 a 8 2 3 21 140

llvl !al 07.441

344 5% 1,WW

1 t t'l? 1639 527

431 745 201 343

37 556

2 797.1lG

s 948

m 443

i s m n 1 2

c-

3 rA I i n I r5

I.1 54

21 R6 5 6 0 I 18 1 I t 6 4 4 4 8 3 3 89 E 18 .a01

21 52 41 l ?

5 31 15 4B

1 30 t X I

40 a4 13 85

321

ENTERGY ARKANSAS. INC.

SUMMARY OF ESTIMATED SURWOR CURVE3.N~3ALVAGE,ORlGlNALCOST. BOOK RESERVEANDCALCUWTED ANNUAL DEPRECIATION RATES AS OF DECEMBER 31,2006

OUIGHAL COST

(4)

678 049 19 313 1~7.202 06 4.184 ~ 5 e 2

51.012 75 857 430 07

9 878 2 f t W

31.924 Am86 152.41603

1.7W3490

t l M1.a 86 21 65521

BSS 348 4 t

1 m.36oza

x172552at

3 UY a35 51 10.ar0.421 03 3.327.070 W 3 270.118 82

125 W t 60 19W.594 22

185.fizS.W974

BOOK RESERVE

i51

2n 569 23661 010 35,440 930

7 31fi ea9 891

4943656 649 055

24,481,155 75 020

2.201 540 2.197 E44 J.ZM.652

0 2,672983

10453.511 3.423.611 31131.324

1223f5 21.52z2.1

16892 615

16?.W2.@3

m7.m 15.m, 129 8866772

212.027 554.872

3.485 627 20 a83 ?38 833

2ss .e 12P. fP7 1.175.127 m5,170

5.W2.814 24.tI7

30f.117 €49 217

1.102.83t 1015043 1 ,ou.922

3.760,98?

9 a43 514

e m t

50 BBt. 192

FUtUUE ACCRUALS

I61

522 52 B 1s 303GIH 14 (He 834

M , I W 24t91t

?178'jl37 355,211

T2 R'O 331 1375CIZ 186 315 186.040

1110892 3 6 3 216

29.018 t ?99 116 6.112 es.1 1,OM w

445,431 33 737

3 035 6GU

w014rn

102t 553

8 042 4G1

227 0.31 435114

6681 373 w

4.d86 €51 IS3 392

.ill B?l

1 962 6f2 JS? 116 21 032

to1 255 a s 424 aap m a32 aot

63n oa3

7 619 t t e

195 458

51 1 .ru a 7 z m

40110

M.650 OOP

CALCULATED

AMOUNT RATE ANNUAL ACCRUAL

171 IWIW41

tW?? 811 4 s 34B 870

9 Pi1 I52 3 t t 153 110 13 197

479 380 16 514

23 8LIB 163 627 447 407

4,Yl 1MB245

6 4 B . W 146 168 133.551

2 MI1 170

7.238 d40

23 e w

a 3qa

w 147 2?4 591 2& 9w 30 197

148618 &.a2

352 11311

1% 538 re 172 61 >a3 48 ew

104.12r 233 391 9 J ~ Z 18 925

465 911 137076 123 12G 1154f9 32 159

dlB MI

2 87Q 301

ENTERGY ARKANSAS, INC.

SUMMARY OF ESTlMATEO SURVIVOR CURVES. M€Y SALVAGE.ORlGHAL COST, BOOK RESERVE AND CALCULAED ANNUAL OEPRECCIATKIH RATES AS OF DECEMBER a<, 2W

NET SURVIVOR SALVAG6 ORJGUJAL BOOK FUfUAf

lMb55m I w0.m

MLI 607 124924 1MlW1 290,034 555.195

1.147 470 1511 3.M

755 395

M8,576 1 t8.44t 475.424

47.145 154.183 131.142 446 537 126.799 222.m Zn.m 527 739

314,883

w.ea

12.786.909

I

2 307 5 4 4 1.21 1 840

d40 4 3 0 246 492 6l 157 77.a55 Lw 192

io10 ?I! 821 512 655 493

40 145 70211

41 538

4 ~ t . w 48111 12 des

285 355 3'10 w2 512 624

18OM 18 195 $33 191 1B5232 .-

9 . ~ 1 789

70433 ' 0 1.m t39fB 440.7H l.l57.414

b6,mO9233 33 74.612 3 2 4 6 5 4 B t 122,788 990 36 85.750.4tO 37 o a yH

217,233.251 W 14i.IB(I.m2 I6 073,190

aoB.231.3w 35 260 666.m 145 565 252

COMPOSlfE CALCUL~TEO

a0 9x4

1 192 345 1519.235 2856614

S 62a. 182

I rmwe i o 730 523 19,Ml 5%

41 542 163

.+ 1__

2 32 173 t 69

13 r3 I1 4s 5w 1 JI 204 1 7 4

157 191 fr *& 0 :a

th 'd 6 94

1008 1461

1 4 1 143

l6Ro

r ns

61 4e

11 a6

lsai

3.48

1 R )

I29 1 J 1

t 39

3 31 4 41 3 37

3 82

2 6 1 23 I 23 P 6 4 I s ,

5 9 I4 1 Id 0 25 6 8 1

0 3 63 6 ) G 4 1 4 1 % 62 1 4 I t 1 0 IS 1 'I

5 0

13.2

a 3

ENTEAGY ARKANSAS. INC.

SUMMARY OF ESTIMATED SURVIVOR CURVES. NET SALVAGE ORIGINAL COST. BOOK RESERVE AHD CALCULATED AHHUAL DEPRECIATION MYES AS OF DECEM3ER 51.1001

COMPOSITE REHAINlNG

Uf E 191=1WIfl

-- -

5 5 22 4 23 P

23 4

I t 2 2.14 25 4

21 9

f i b 21 2 25 2

24 P

ZOA

CALCULATED ANNUAL ACCRUAL

AMOUNT RATE -1c_

I71 iar17~14)

HET SURWOR SALVAGE

CURVE PERCENT -- ACCOUNT .PI_-_ .1-.-

I t 1 (21 131

FU’IURE ACCRUALS

I61

BOOK RESERVE

1J1

ORIGWAL COST

1 4

t.n419(XI 80 5% 764 84915,931

163 312Wl

26.431 556 27 98 418.813 06 114.702 085 83

239 552 455 16

135690R3 71,325214 80,553 550

165441.653

19 743 282 54 173.320 23 gal ow 128.1 81.659

1.0 6 3,7 R , 4 26

7SR3 0 267 3?0 97 47202 3 104 142 ‘.e 2

1 t t 008 000 1 45 OM 0 44 0 15

IJ 04

9 937 419 419

11.629 168 458 223

23 251

61435665 541.m I t

803.418 31 63 529 56 0B 69 09.388 ZB

2.756081 11

91 a48 ao

430 702 17 512 I 7 5 0 8

494 387 a . m 18.M3 961f

1 a01 3Qt

2 16.Ki 551.488 551.455 314.231 58.701 IS em M.241

1892494

f 14 0 18 0 75 IF6 0 B2 OK! OB?

1 %

42 % 29 I 26 1 43 2 31 5 31 9 31 4

dI I

2 592,549 89 1,358,261 09 1 W6,W 56 B 135.092 97

512.5% 08 513 327 01 513 d73 Od

14.749 563 42

E& 828 1.181.351 1.224.leB 2.Ojg.71S 431,141 432.1% 432281

6 KE.268

1 364 977 310 536 ?e9 151

6881 886 132wb 332 *& $32 530

9 6 4 4 i Y

at 539 l0CU 10 %

159 363 4 216 4.21% 4213

234 484

EHJERGY ARKANSAS. INE.

SUMMARY OF ESTIMATED SURVWOR CURVES. HET SALVAGE. OIUGlNAL COST. BOOK RESEW& AND CALCULRfED AHHVAL DEPAECUMN RATES AS OF BEGEMBER 31,2001

MET

ACCOUfir CURVE PERCENT COST RESERVE ACCAUALS SURVIVOR SALVAGE ORIGtNAL BOOK FUTURE -- - -x -_ .-

4 '1 R 0 1 PI [51 161

--_.- ANNUAL ACCRURL AMOUNT RATE _-_- --

171 w = t r y ( d )

t63 639 1 353 573 1 .212,m

188 373

46,114 87,610

3.384 Z B I

308 ma

89(1?4Bd9 2 4 6 5 2 2 7 3 4 2 081,370M)

048.223 45

1.3r1 52aP s t a m ze

ne,m5 78

82rl 37552

2 73 0 TU 1 59 3 ifi 1 as 2 40 2 33

1 14

81 i69 13 t16.4265

116.012 48 121 720 18 31,977 06 31 973 31

011.600 87

i35 e92 86

22 549 1z0.059 215984 25.069 92 607 I ? 9% 27 812

531,106

2 9Ot 113

4 658 3.632 1 I f 5

7% 765

r 4 150

2 U? OM * 4: 125 3 *s

I er

a -- 2 TO

1,451 >76 00 102.211 E1 lW.915 82 3w 1 9 6 6

14 e37 51

11 025 73

3W14818

2B,85?.12kDY

1 4 , 8 2 9 ~

406061 95 01B 85 682

I w45 7.245 7 227 7 210

610.3M

13.100.751 db6JW 1.M

4 % 1M 4 0 3 4 :&

11 48 w 48 663

t i 45 t 1 Y

P 3 f

a 655.843 w J I 18,427 19 3 118.427 ts 3 1 r a r n t9

24.758 94 1 0 1 , s 92 11437W 11435w 13.55r 55

tB,173W 32

8 559 E12 5054.648 am649 309p6-29

76 ?07 11M 1 PJ4 2 JM

1: 973 at

1 a . w

. . . I . . . . . . . . . . . . . . . .

c + Q

.. J

5 E 3

U 4

;i + c L

i e 3

_ . . . .

-.om-

E E 0

EHTERGY ARKANSAS. IMC.

SUMMARY OF ESTIMATED SURVIVOR CURVES, NET SALVAGE. ORIGINAL COST. BOOK RESERVE AND CALCUMTEO www OEPRECU~WA WITES AS OF DECEMBER 31, zwa

NET CALCULATED COMPOSlfE BOQK FUTURE ANNUAL ACCpUAL REMMNING 0 RI t I H L SURVWOR SALVAGE

U A l f UFE -- -.I.I-. CURVE PERCENT COSY ACCRUALS AUOUNf _-_ __-_ RES E RU E -- ACCOUHT (61 171 10l=tlyill LBl~I6Wl Ill (21 (31 (4 1%

0 151 ltOl 1201 t2Ol 1251 a

(51 0

21 S 9 039

128 582.892 78 J25.2t7

103 914.773 2.274 2 979 23 312

197.0&8>74

12 ~19.520

52 818 MI

21 io1 m 25 003 t 7 9

352 327 1m 92 630,210

211 411 1% meat 143

8 391 38 111 93 469

aas.m.ua

0 59 104 2 31 4 I7 4 5s

2 81 521 2 26

3 -55 0 33 3 3D

4.00

4 ro

3 513

40 B 33 0 3I 5

I76 19 2 18 4 14 4 iB B io 1 14 8 0 4 96

I f 7

re 7

579 rn 8127513

236Md 192 3 4 322 a32 183 IW.526 IO ai0 222 65 658.1 U5

3n.185 261 61 5 t2 9 6 73.119 215 68673 7a 16841 512 z a . w . m

1.660,Mt.lM

14 m 255 l?5

7 2 3 7 , m 1 9 2 3 G m 16.086 ?Bo 3 G94 844

27 754 205 2 136815 3671 914 4 6Jo 582 2 619 2W 2.909686

Qf,06W07

i 5 w m

1115 153 Bo 13 168,281 32

3WW1.30739 440.323 180 57 353.446 6Dt 97

7a.630.335 94

533,21!3453& 127.230 537 72

94548.994 23 fD2.698.939 41 t%.MS.M3 85 30 m.436 15 f6.887.47041

z z n . ~ r 4 ; 1 2 ~ 2

W R t 5 2LEsa

1101 0

2 30 5 75

30 6 164

63 890 6W 45 21819 312 464W 411 1 311 692 1 705 6E5 Of E83750 1021 939 97 991

19 381 eB 18.W u 0 22 097 415 15 1 4 6 2 5 a 2 f A13 113 2 m.532

n tifiemu U,W6Ed 7 472 123 2 085 552

741 529 35 W.rJ16 1756t6 $4 970 12 878 39 5 010 I .m9 591

012c92oB m.7u 448 YJB 60 33a

1.261 23 1 3 358 1141 165 305 534 233 440 SB ZG7.BfO JO 6 3 24 855

78887I3a28 444.713 7442- t 3218.18

10 559.206 03 1 219 273 4 339 834 1.213036

5-60 3 6

3 G

11 ? I t 7 I4 I 3 3 8 I 2 6 1

0

ENERGY A l t M S h S . IUC.

SUMMARY OF ESTIMATED SURVIVOR CURVES, WET SALVAGE, ORIGWAL COST, BOOK RESERVE AN0 CALCUMTED ANNUAL DEPREWAWH RATES AS OFDfCEYB€R 3 l . W

TOTAL NOMOEPRECIABLE PtANT

TOT41 ELECYRH: PLANT

1ESQ

WSQ ad32 5

MET IIALVAG E PPKCENY

131

a

0 0

ORIGWAL cow 14

53,36568 3.8323[35 32

JOB.Mf.255 MI 2.1213 302 31 l.M9,949 70 l.W8,812 04

m(347n3 4.7Hl.14825 2552.158 14 3 931 ,Po8 38

3a.198.ulP.75

2 a2 3m 1 6 1 2 45 3 34

3 82 a 0 1 52

4 0 3 Is0

CALCULATE 0 COMPOSITE

7.256 201 0 0 17 f69.7B3 9 210.635 1 2 Y X8f I2 26 I n

I

111-1 2 SERVICE LIFE STATtSTlCS

I

ENTERGY ARKANSAS, INC.

ACCOUNT 311.00 STRUCTURES AND IMPROVEMENTS

ORIGINAL LIFE TABLE

PLACEMENT BAND 1943-2008 EXPERIENCE BKND 1996-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN CF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

0.0 0 . 5 1.5 2 . 5 3.5 4.5 5 . 5 6.5 7.5 8 . 5

9 . 5 10.5 11.5 12.5 13.5 14.5 1 5 . 5 1 6 . 5 17.5 1 8 . 5

19.5 2 0 . 5 21.5 22.5 23.5 24.5 25.5 26.5 27.5 2 8 . 5

7 , 3 2 2 345 7,368,086 7 I 316,778

7 I 074 I 476 7 , 763 , 064 8 , 024 , 966 7 , 615 , 6 6 5 6 , 1 3 7 , 7 3 4 4,810,192

7 2 8 3 336

5,022,821

5 , 6 8 2 , 2 6 9 15,432,344 15,684,381 23,110,936

54,555,297 53,865,840

5 , 2 2 7 , x a

5 4 , a 0 7 , 8 8 6

53 596 902

5 3 , 5 5 4 , 8 2 0

53,198,044 52 , 499 ,070 52 , 294,002 52,090,425 46 I 020 , 235

37,242,915 e: 24;3,3cs

5 3 , 4 5 7 , 4 0 8

45,153,871

0 . 0 0 0 0 1.0000 15 0.0000 1.0000

0 . 0 0 0 0 1.0000 0 . 0 0 0 0 1.0000 0.0000 1.0000 0.0000 1.0000

9 , 5 2 5 0.0012 0 .9988 40,328 0.0053 0 .9947

0.0000 1 . 0 0 0 0 0 . 0 0 0 0 1.0000

100 - 00 lOO.00 100.00 100 * 00 z o o * 00 100.00 100.00

9 9 . 8 8 9 9 . 3 5 99.35

9,108 0.0018 0 . 9 9 8 2 9 9 . 3 5 2 8 , 0 8 9 0-0054 0.9946 99.17 2 3 , 6 0 9 0.0042 0 . 9 9 5 8 9 8 . 6 3 7 0 , 5 8 8 0,0046 0 . 9 9 5 4 9 8 . 2 2

0 . 0 0 0 0 I. 0000 97.77 4,899 0.0002 0 . 9 9 9 8 97.77

5 5 , 8 7 5 0 . 0 0 1 0 0 . 9 9 9 0 97.75 24 , 824 0.0005 0.9995 9 7 . 6 5

0 * 0000 1.0000 97 - 60 1,091 0 . 0 0 0 0 1.0000 97 + 6 0

8 0.0000 17 0.0000

24,697 0 . 0 0 0 5 5,180 0.0001

31,399 0 . 0 0 0 6 13,116 0.0003

0,0000 0 - 0000 0.0000 0 * oooc

1.0000 1 . 0 0 0 0 0 . 9 9 9 5 0 . 9 9 9 9 0 . 9 9 9 4 0,9997 1.0000 1.0000 1 * 0000 i . G C G G

9 7 . 6 0 9 7 . 6 0 97.60 9 7 . 5 5 9 7 . 5 4 9 7 . 4 8 9 7 . 4 5 9 7 . 4 5 9 7 . 4 5 97 * 4 5

57.45 97.45 37.45 47.45 97.45 97.21 97.20 97.20 3'! . 3.12 Y 7 . 2 '1

111-14

ENTERGY AFLKANSAS, INC.

ACCOUNT 311.00 STRUCTURES AND iMPROVEMENTS

0RIGTNP.L L I F E TABLE, CONT.

PLACEMENT BAND 1943 - 2 0 0 8 EXPERIENCE BAND 1996-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO mTI0 INTERVAL,

39.5 40.5 41.5 42.5 43.5 44.5 4 5 . 5 46.5 4 7 . 5 4 8 . 5

49.5 5 0 . 5 5 1 . 5 52.5 5 3 . 5 54.5 5 5 . 5 5 6 . 5 5 7 . 5 5 8 - 5

2 , 0 3 2 , 5 5 9 2 , 974,743 6 , 424,276 7,520,161 7,768,339

10,035,810 12,14a,599 13,174,221 ioI4s3,a55 11 , 446,282

11 , 444,823 11,439,621 11,466,037 12,117,594 11,966,752 8,498,375 7,402,086 7,153,611 4,875,751 2 , 7 6 3 , 0 2 2

59.5 1,705,297 6 0 . 5 1 , 7 0 0 , 2 9 5 61.5 704 , S O 7 62.5 703,64 I 63.5 703,415 64.5 671,069 6 5 . 5

57 0.0000 18,225 0.0061

0 * 0000 0.0000 0 * 0000 0.0000

22,300 0.0018 0.0000

1,068 0.0001 0.0000

0 * 0000 0 * 0000 0.0000 0.0000 0.0000 0.0000 0 . 0 0 0 0 0.0000 0 * 0000 0 - 0000

1 * 0000 0.9939 1 * 0000 1 * 0000 1 * 0000 I. * 0000 0 . 9 9 8 2 1 * 0000 0 . 9 9 9 9 1 * 0000

1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1 - 0 0 0 0 1.0000

9 7 . 2 0 97 2 0 9 6 . 6 1 96.61 9 6 . 6 1 96 61 96 61 96 - 44 96 .44 9 6 . 4 3

96.43 96.43 96.43 96.43 96.43 96.43 96.43 96.43 96.43 96 -43

0 . 0 0 0 0 1.0000 96.43 0 . 0 0 0 0 1,0000 96.43 0 . 0 0 0 0 I. 0000 96.43 0.0000 1.0000 96.43 0 . 0 0 0 0 1.0000 96.43 0 . 0 0 0 0 1.0000 36.43

9 6 . 4 3

111-15

, -- .... . - . . ,--

ENTERGY ARKANSAS, INC.

ACCOUNT 312.00 BOILER PLANT EQUIPMENT

ORIGINAL LIFE TABLE

PLACEMENT BAND 1943-2008 EXPERIENCE BAND 1992-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

0 . 0 0 . 5 1.5 2.5 3.5 4.5 5 . 5 6 . 5 7.5 8 . 5

114,972,880 81,174,784 69,621,260

56,244,473 5 2 , 4 1 2 , 6 5 0 46,645 , 9 8 6 4 4 , 1 5 1 , 8 6 8

118 , 118,811

4 i s , 9 ~ ~ , a 6 9

3 6 , 5 6 0 , 3 6 9

9 . 5 1 1 8 , 8 9 0 , 3 7 5 1 0 . 5 223,834 , 0 8 8 11.5 327,467,745 1 2 . 5 324,203,728 13.5 319,205,880

15.5 315,921,200 14.5 317,848,324

16.5 312,880,105 17.5 310,383,671 18.5 309,832,069

19.5 2 0 . 5 2 1 . 5 2 2 . 5 23.5 24.5 2 5 . 5 26.5 2 7 . 5 28.5

2’3.5 3 0 . 5 31.5 32.5 3 3 . 5 34.5 3 5 . 5 36.5 37.5 23.5

309,369,186 308 , 807,013 326,603,264 325,136,318 322,175, I63 317,726,965

2 2 2 , 0 9 9 , 5 0 5 129,637,945 20,735,637

2 3 2 , 8 7 6 , 6 0 2

2 + ! , 571, 2-35 36,032,243 3 7 , 9 . ~ , 6 9 a 37,857,377 37,702 , 5 5 6 37,512,903 37 I 4 5 4 , 2 9 5 -37,591 , 2 2 4 4$, !J:3,21s 2 3 , 7?;4, 6.14

0 - 0000 5 1 , 4 4 0 0.0006

0 . 0 0 0 0 318 0 . 0 0 0 0

84,629 0.0015 168 , 544 0.0032 84 , 170 0.0018

0 . 0 0 0 0 13,832 0.0004

902 0.0000

4 12 , 546 0 . 0 0 3 5 4,271 0 . 0 0 0 0

176,660 0.0005 2 9 9 , 1 6 7 0 . 0 0 0 9 307,939 0.0010 254 , 995 0 . 0 0 0 8

1,381,879 0.0044 1,442,467 0.0046

9 3 , 143 0 . 0 0 0 3 10,095 0.0000

64,884 0.0002 995 , 7 2 5 0 . 0 0 3 2 7 8 9 , 3 3 9 0 . 0 0 2 4

1,306,034 0.0040 1 , 715 , 097 -0.0053

533,337 0,0017 5 , 0 7 8 , 9 8 7 0,0218

4 9 4 , 5 0 9 0 . 0 0 2 2 1,019,432 0 . 0 0 8 5

0 - 0 0 0 0

t:. c900 112,927 C.0031

0. O O O r ! 0.9000 0 * 0000 0.0000 0.0000 0.0000

I;! , 5-76 1’) 01!?4 2 8 , U 4 7 3.3rIOa

1.0000 0 .9994 1.0000 1.0000 0- 9985 0 . 9 9 6 8 0 . 9 9 8 2 1.0000 0.9996 1.0000

0 . 9 9 6 5 1.0000 0 . 9 9 9 5 0 , 9 9 9 1 0 I9990 0 . 9 9 9 2 0 . 9 9 5 6 0 . 9 9 5 4 0 , 9 9 9 7 I. 0000

0 . 9 9 9 8

0 . 9 9 7 6 0.9960 0 . 9 9 4 7 0 . 9 9 8 3 0 * 9782 0.9978 0 . 9 9 1 5 1. GO(1C

0 . 9 9 6 8

100 * 00 100,00

9 9 . 9 4 99.94 99.94 99.79 99.47 99.29 9 9 . 2 9 9 9 . 2 5

9 9 . 2 5 9 8 . 9 0 9 8 . 9 0 9 8 . 8 5 9 8 . 7 6 9 8 . 6 6 -48.58 9 8 . 1 5 9 7 . 7 0 97.67

97.67 9 7 . 6 5 97 * 34 97.11 96.72 94.21 96 I 0 5 9 3 . 9 6 93 - 7 5 3 2 . 9 5

2 2 . 9 5 It. 3 5 32 * 6 6 92.66 92.66 92.66 3 2 . 6 6 9 2 . 5 6 32. G < 3 2 . E2

.-

ENTERGY ARKANSAS, INC.

ACCOUNT 312.00 BOILER PLANT EQUTPMENT

ORIGINAL LIFE TABLE, CONT.

PLACEMENT BAND 1943-2008 EXPERIENCE BAND 1 9 9 2 - 2 0 0 8

AGE AT EXPOSURES AT RETIREMENTS PCT 5URV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

3 9 . 5 4 0 . 5 41.5 42.5 43.5 44.5 4 5 . 5 46.5 4 7 . 5 4 8 . 5

4 9 . 5 50.5 s 1 . 5 5 2 . 5 53.5 54.5 5 5 . 5 5 6 . 5 5 7 . 5 5 8 . 5

3 3,684,249

41,419,965 43,184,302 43,149,178 43,123,913 43,088,346 43,041,065 25,456,217 26,145,333

3 8 , 5 0 2 , 7 ~

26,133,860 26,124,292 26,119,168 26,115,985 2 5 , 7 6 9 , 3 4 3 14,341,373 10,390,021 10,377,957

5 , 5 5 3 , 6 3 7 2,601,980

0 * 0 0 0 0 28,348 0 . 0 0 0 7

0.0000 15,432 0.0004 26,079 0.0006

0 . 0 0 0 0 0 . 0 0 0 0

10,041 0 . 0 0 0 2 2 0 , 8 6 4 0 . 0 0 0 8

87 0.0000

7,863 0.0003 8 5 0 0,0000

0.0000 17,531 0.0007

0.0000 0 * 0 0 0 0 0.0000 Q.0000 0.0000

2 , 8 2 0 0.0011

1.0000 0 . 9 9 9 3 1 .oooo 0.9996 0 . 9 9 9 4 1.0000 I. 0000 0 . 9 9 9 8 0 . 9 9 9 2 1.0000

0 . 9 9 9 7 3 * 0000 3.0000 0.9993 1.0000 1.0000 1.0000 1.0000 1 - 0000 0 . 9 9 8 9

9 2 . 5 5 9 2 . 5 5 92.49 9 2 . 4 9 92 -45 9 2 . 3 9 92 - 39 92 + 39 92.37 92.30

9 2 . 3 0 92.27 92.27 9 2 . 2 7 92.21 92.21 92.21 92 -21 92.21 92.21

5 9 . 5 773,706 0.0000 1,0000 92.11 6 0 . 5 773,406 0.0000 1.0000 92.11 61.5 771,266 0 . 0 0 0 0 1.0000 9 2 . I1 6 2 . 5 770,293 0 . 0 0 0 0 1.0000 92.11 5 3 . 5 7 6 4 , 0 0 9 0.0000 1.0000 9 2 . 1 1 64.5 74 7,4 14 930 0.0012 0.9988 92.11 65.5 9 2 . 0 0

I

111-19

I

I

I

ENTERGY ARKANSAS, INC.

ACCOUNT 314.00 TURBCGENERATOR UNITS

ORIGINAL LIFE TABLE

PLACEMENT BAND 1943-2008 EXPERIENCE BAND 1996-2008

AGE AT BEGIN OF INTERVAL

0 . 0 0 . 5 1.5 2.5 3.5 4.5 5 . 5 6 . 5 7.5 8.5

9.5 10.5 1 1 . 5 12.5 1 3 . 5 14.5 1 5 . 5 16.5 17.5 18.5

19.5 2 0 . 5 21.5 2 2 . 5 23.5 2 4 . 5 25.5 26.5 27.5 2 8 . 5

2 j . 5 3-2.5 3 1 . 5 3 2 . 5 3 3 . 5 3 4 - 5 2 s . s 36.5

i q * 5

! - r. I . . _

EXPOSURES AT BEGINNING OF AGE INTERVAL

15 , 9 6 5 , 9 2 3 15,532,166 18,644,260 1 7 , 6 6 3 ~ ~ 5 l a , 418 , a05 19,484,172 17,983,805 15,691,835 15,556,508 ~ o , 9 3 7 , 3 a 4

8,611,053 8,300,085 9 , 2 0 8 , 6 4 5

40,169,450 42,183,401 81,891,180

118,218,886 117,124,433 116,792,001

11a,720,873

1 1 6 , 6 9 4 500 116,326,727 116,058,153 116,027,426 125,270,338 113,864,017 95,334,439 92,130,720 59,229,814 12,743,8 36

1 2 , 4 6 4 . 2 4 ' 1 12,4ij2.422 12 , 473, ::175 12,469,255 12,523,730 28,405,720 28,378,344 2 8 , 3 4 8 , I21 :q, ! r i 5 , I E Z 1 5 , G l l , 56.3

RETIREMENTS DURING AGE RETMT SURV INTERVAL RATIO =TI0

0.0000 0 . 0 0 0 0 0 * 0 0 0 0 0.0000 0.0000 0 * 0000

2 , 6 8 2 , 9 2 7 0.0936 2 0 , 0 0 0 0.0013

0 .oooo 0.0000

0 . 0 0 0 0 9 0 . 0 0 0 0

496 0.0001 15,094 0.0004 26 ,958 0 A006

1,140,886 0.0139 4 9 , 8 2 4 0.0004

0 . 0 0 0 0 3 , 8 5 3 0 . 0 0 0 0

0 . 0 0 0 0

12,780 0.0001 198,811 0 , 0 0 2 7

0.0000 594,671 0.0051 391,323 0 . 0 0 3 4

4,243 0.0000 820,177 0.0086

8,141 0.0001 21,453 0.0004

3 . C O G r 3

1.0000 1.0000 1.0000 1.0000 1 * 0000 1.0000 0 . 9 0 6 4 0.9987 1.0000 I. 0000

I. 0000 I. 0 0 0 0 0 . 9 9 9 9 0 . 9 9 9 6 0.9994 0.9861 0 - 9996 1.0000 1.0000 1 * 0000

0 . 9 9 9 9 0 . 9 9 8 3 I. 0000 0.9949 0 9966 1 . o o o o 0.9914 0.9999 O f 9996 1 . 0 0 f l Q

PCT SURV BEGIN OF INTERVAL

100.00 100.00 100.00 1 0 0 . 0 0 1 0 0 . 0 0 1 0 0 . 0 0 100.00 90.64 9 0 . 5 2 90 .52

90 .52 90.52 90 .52 90.51 9 0 . 4 7 9 0 . 4 2 89.16 89.12 89.12 89.12

89.12 89.11

8 8 . 9 6 8 8 . 5 1

88.96

88.21 a5.21 8 7 . 4 5 87.44 8 7 . 4 1

h A i . I 1 3 7 . 4 ; 8 x 4 1 8 7 . 4 1 87.28 87.28 87.23 87.20 67.14 5r.14 ..1 -

Ill-20

ENTERGY ARKAKSAS, INC.

ACCOUNT 314.00 TURBOGENERATOR UNITS

ORIGINAL LIFE TABLE, CONT.

PLACEMENT BAND 1943-2008 EXPERIENCE BAND 1996-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGINNTNG OF DURING AGE RETMT SURV 3EGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

3 9 . 5 40.5 41.5 42.5 43.5 4 4 . 5 4 5 . 5 4 6 . 5 47.5 48.5

4 9 . 5 50.5 51.5 52.5 53.5 54.5 5 5 . 5 5 6 . 5 5 7 . 5 58.5

16,054 , 961 15,992,010 24 , 062 , 641 2 7 , 1 7 5 , 3 5 7 27,176,020 31,630,556 34,631,746 36,403,340 20 ,564 , 1 4 7 20 , 564 , 7 9 2

2 0 , 5 6 5 , 3 7 2 20,564,764 2 0 , 566 , 781 21,290,476 21,254,153 13,196,263 10,039,759 10,038,751

2,562 I 677 5 ,5a0 ,517

5 9 . 5 740,708 6 0 . 5 740,611 61.5 739,966 62 .5 7 3 9 , 3 8 6 6 3 . 5 739,386 64.5 7 3 7 , 3 2 8 6 5 . 5

42,075 0.0026 0.0000 0 * 0000 0.0000 0 . 0 0 0 0 0.0000 0.0000 0.0000 0.0000 0.0000

0.0000 0 * 0000 0 . 0 0 0 0

19,966 0.0009 69,361 0.0033

0.0000 0 . 0 0 0 0 0 . 0 0 0 0 0.0000 0.0000

0.9974 1.0000 1.0000 1 f 0000 1.0000 1 * 0 0 0 0 1.OQOO 1 * 0000 1 * 0 0 0 0 1 * 0 0 0 0

1.0000 1.0000 1 * 0000 0.9991 0 . 9 9 6 7 1.0000 1 * 0 0 0 0 1.0000 1.0000 1 * 0000

87.14 86.91 86.91 8 6 . 9 1 86.91 86.91 86.91 86.41 86.91 86.91

86.91 86.91 8 6 . 9 1 86.91 86.83 8 6 . 5 4 86.54

86.54 86.54

8 6 - 5 4

0.0000 1.0000 0 6 . 5 4 0 . 0 0 0 0 I. 0 0 0 0 86.54

0 * 0000 1.0000 86.54 O.OO0O 1.0000 5 6 . 5 4

0.0000 1.0000 9 6 . 5 4

0.0000 1.0000 a6 .54 86-54

I

.-

I

I

ENTERGY ARKANSAS , INC .

ACCOUNT 315.00 ACCESSORY ELECTRIC EQUIPMENT

3RfGINAL LIFE TABLE

PUCEMENT BAND 1943 -2008 EXPERIENCE BAND 1996-2008

AGE AT BEGIN OF INTERVAL

0.0 0 . 5 1.5 2 . 5 3.5 4 . 5 5 . 5 6 . 5 7.5 8.5

9 . 5 10.5 11 . s 12.5 13.5 14.5 1s.s 16.5 17.5 18.5

19.5 2 0 . 5 21.5 22.5 23.5 2 4 . 5 2 5 . 5 2 6 . 5 2 7 . 5 2 P . 5

-9," 3 3 . 5 3 1 . 5 3 2 . 5 33.5 34.5 3 5 . 5 3 6 . 5 ;7.5 l g . 5

EXPDSURES AT BEGINNING OF AGE INTERVAL

14,417,976 21,574,396 19,196,961

18,475,421 19,721,369 16,423,569 16,054,152 1 5 , 3 9 3 , 3 5 0 14,638,450

ia,775,687

12,028,741 11,934,465 12,423,007 23,372,369 16,907,728 2 7 , 3 8 4 , 8 5 6 43,997 , a 4 5 43,747,908 42,205,442 42,147,831

42,091,858 42,012,120 41 , 490,483 41,455,697 41,164,447 39,041,920 2 9 , 9 9 2 , 9 5 0 2 9 , 9 0 9 , 5 9 5 L9,34S, 175

2 I 3458 , 6 3 9 .> L , 3 L 5 , 2 c ' l 2,260, i6.3 2,263,331 2,269,213 2,2GrJ, 462 3,998,195 3,915,333 3,781,045 ' , ' i 7 6 , 2 5 9 i, 6 8 1 , r i j ?

RETIREMENTS DURING AGE RETMT INTERVAL RATIO

0 f 0000 0 * 0000 0 * 0 0 0 0 0 . 0 0 0 0 0 * 0 0 0 0 0 . 0 0 0 0 0.0000 0.0000

26,622 0.0017 51,778 0.0035

26 , 400 0 -0022 8 9 0.0000

3 4 , 6 0 4 0 . 0 0 2 8 8 , 6 7 7 0.0004

0.0000 1,821 0.0001

0 * 0000 0 * 0000

18 , 2 5 5 0.0004 0 * 0 0 0 0

46 0.0000 0 * 0000

2,462 0.0001 7 , 2 0 0 0 . 0 0 0 2

136,402 0.0033 114,050 0.0029 26,651. 0.0009 28,448 0.0010

9 , 3 3 6 0 . 0 0 0 5 0. OCOC;

c . @GO3 C . G G C C 0. QOOO r3.oooc) 0.0000 0. oouo

129,146 0.0330 Q. 0000 r! . c c o 5 r3 ,O I )c )O

SURV RATIO

'L .0000 r.0000 I. 0 0 0 0 1.0000 1.0000 1.0000 1.0000 1.0000 @. 9 9 8 3 0 . 9 9 6 5

0.9978 1.0000 0 . 9 9 7 2 0.9996 1.0000 0,9999 1 - 0000 1 * 0 0 0 0 0.9996 1 * 0000

1 * 0000 1 * 0000 0 . 9 9 9 9 0.9998 0.9967 0.997: 0 * 9991 0 * 9990 0 * 3 3 9 5 1 . ~ 0 i ) O

* . ' t j 1 ] . , 3

1 * C ' J i 1 3 1 . ,3c4:3 1 * oG(;c 1 rn oooc) 1 * OOO!, 0.9670 I 0000 1 . ,; I) p; 4-

1 . bi:l-lfJ

PCT SURV BEGIN OF INTERVAL

100.00 100.00 100.00 100 * 0 0 1 0 0 - 00 100.00 100.00 100.00 100.00 99.93

99.48 9 9 . 2 6 9 9 . 2 6

98 * 94 9 8 . 9 4 98.93 98.93 9 8 . 9 3

98 + 98

9 8 - 0 9

9 8 - 8 9 9 8 . 8 9

9 8 . 8 9 9 0 . 8 8 9 8 . 8 6 9 8 . 5 3 98.24 98.15 98.05 3 ~ ~ a . 3

3 5 . j:! 3 2 . 9 2 93-00 5 d . OG 93.00 98.00 98.00 34 -77 94.77 34.77

111-23

ENTERGY ARKANSAS, INC.

ACCOUNT 315.00 ACCESSORY ELECTRIC EQUIPMENT

ORIGINAL LIFE TABLE, CONT.

PLACEMENT BAND 1943-2008 EXPERIENCE BAND 1996-2008

AGE AT EXPOSURES AT RZTIREMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF lNTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

3 9 . 5 40.5 41.5 42.5 43.5 4 4 . 5 4 5 . 5 4 6 . 5 47.5 4 8 . 5

4 9 . 5 5 0 . 5 51.5 52.5 5 3 . 5 54.5 55.5 5 6 . 5 5 7 . 5 5 8 . 5

1,896,783 1,930,914 4,045,339 4 , 5 7 7 , 1 6 6 4 , 5 8 4 , 7 9 6 5 , 3 5 5 , 2 6 7 6,176,454 6 , 4 3 2 , 7 9 9 4,637,406 4 , 8 3 9 , 9 8 0

4,839,943 4 , 827,382 4 , 8 2 8 , 6 5 5 5 , 023,407 4,946,973

2,274,386 2,262 , 922 1,491,856 680,292

2,842,172

5 9 . 5 418,211 6 0 . 5 418,009 61.5 2 1 5 , 4 3 5 6 2 . 5 225,435 63.5 214,619 6 4 . 5 212,929 65.5

8 , 3 0 7 0 . 0 0 4 4 0.0000 0.0000

8 0.0000 0 . 0 0 0 0 0.0000 0.0000

11,666 0,0018 0 * 0 0 0 0 0 * 0000

13,008 0 . 0 0 2 7 0 * 0000 0.0000

20,103 0.0040 0.0000 0.0000 0.0000 0 IO000

2,506 0.0017 0 . 0 0 0 0

0 . 9 9 5 6 1 * 0000 1.0000 1.0000 1.0000 1 * 0000 I. 0 0 0 0 0 . 9 9 8 2 1 0 0 0 0 1.0000

0 . 9 9 7 3 1.0000 1.0000 0 . 9 9 6 0 If 0000 1.0000 1.0000 1.0000 0.9983 1.0000

94 * 7-7 94.35 9 4 . 3 5 94 * 3s 9 4 . 3 5 94.35 9 4 . 3 5 94.35 94.18 94.18

9 4 . 1 8 93.93 93.93 93.93 93.55 9 3 . 5 5 9 3 . 5 5 9 3 . 5 5 9 3 * 55 93.39

0 . 0 0 0 0 1.0000 9 3 . 3 9 0 . 0 0 0 0 1.0000 93.39 0.0000 1.0000 93.39 0.0000 1.0000 93.39 0.0000 1.0000 93.39 0.0000 1.0000 93.39

9 3 . 3 9

I 11-24

30 YO 50 60 QGE IN YEARS

Eti'ERCY RRKRNSRS. INC. ACCOUNT 316.00 H:SCfLLW€CUS POHER FCWT EOUIPHfNT

ahtGlNAL AND SHWIH SURVIVOR CURU€S 3AtGINRC CURVE: X 1956-20G0 EXFERIENCE; 1943-2008 PtQCtMENIS

I

I

I 1uo 1 I O 120

EETERGY ARKANSAS, mc. ACCOUNT 316 a 0 0 MISCELLANEOUS POWER PLANT EQUIPMENT

ORIGINAL LIFE TABLE

PLACEMENT BAND 1943-2008 EXPERIENCE BAND 1 9 9 6 - 2 0 0 8

AGE AT EXPOSURES AT RETIREMENTS PCT SUEV BEGIN OF BEGINNING CF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL R4TIO RATIO INTERVAL

0.0 0.5 1.5 2 . 5 3 . 5 4 . 5 5 . 5 6.5 7.5 a s 9 . 5 10.5 11.5 12,5 13.5 14.5 15.5 16.5 17.5 18 .5

19.5 20.5 2 1 . 5 22.5 2 3 . 5 24.5 25.5 2 6 . 5 2 7 . 5 28.5

2 j . 5 ;r:. 5 3 1 . 5 2.2.5 33.5 34.5 3 5 . 5 36.5 -:, 7 . !' 'j R . ' I

4 , 4 9 9 , 3 8 1 4,830,212 4,390,145 5,04 1 , 6 3 5 5,017,077 5 , 0 9 3 , 1 6 8 5,110,542 4 , 9 7 5 , 0 0 6 5,022,449 4,507,696

3,957,995 4 , 3 5 2 , 0 5 3 4,053,778 7,184,900 7,105,437 7 , 6 6 3 , 584 10,541 , 624 10,550,344 10,441,700 10,081,188

9,015,857 9,500,250 9,228,314 8 , 990,132 9 , 5 0 2 , 3 8 8 7 , 0 0 6 , 5 9 2 5 , 1 3 3 , 3 6 3 4,755 , 4 6 9 3,799,833

a o 2 , 9 7 9

0 . 0 0 0 0 1.0000 1,685 0.0003 0.9997 3,351 0 . 0 0 0 7 0.9993

202 0 . 0 0 0 0 1.0000 0.0000 1.0000

835 0 . 0 0 0 2 0 . 9 9 9 8 121,010 0.0237 0.9763

0 . 0 0 0 0 1.0000 13,945 0 . 0 0 2 8 0 . 9 9 7 2 29,071 0.0064 0.9936

22,853 0 . 0 0 5 8 0.9942 46,729 0.0107 0 . 9 8 9 3 8 2 , 8 6 5 0.0171 0 .9829 6 8 , 5 0 5 0 . 0 0 9 5 0 . 9 9 0 5 24,562 0 . 0 0 3 5 0 . 9 9 6 5 21,372 0 . 0 0 2 8 0.9972 36,140 0.0034 0.9966

7 , 8 8 9 0.0007 0.9993 23,015 0.0022 0.9978

1 , 3 6 9 0.0001 0.9999

18,545 0.0019 2 0 , 5 4 5 0 . 0 0 2 2 7 0 , 6 3 9 0 . 0 0 7 7 10,734 0.0012 23,146 0 . 0 0 2 7

6 , 2 8 6 0 . 0 0 0 8 0 * 0000 0 - 0000 0.0000 0.0000

0 . 9 9 8 1 0 . 9 9 7 0 0.9923

0 . 9 9 7 3 0.9992 1.0000 1 - 0000 1.0000 1 . r , O G O

0 . 9 9 8 8

100.00 100.00 99.97 9 9 . 9 0 9 9 - 9 0 99 * 9 0 99 - 8 8 97.51 97.51 9 7 . 2 4

96.62 96.06 9 5 . 0 3 93.40 92.51 92.19 91.93 91.62 9 1 . 5 6 91.36

9 1 . 3 5

90 98 9 0 . 2 8 90.17 89.93 8 9 . 8 6 8 9 . 8 6

91. l a

8 9 . 8 6 a 3 , ti5

ENTERGY ARKANSAS, INC.

ACCOUNT 316 . O O MISCELLANEOUS POWER PLANT EQUIPMENT

ORIGINAL LIFE TABLE, CCNT.

P'UACEMENT BAND 1943-2008 EXPERIENCE BAND 1996-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

3 9 . 5 40.5

42.5 43.5 44.5 45.5 46.5 47.5 48.5

\ 41.5

49.5 50.5 51.5 52.5 5 3 . 5 s4.5 55.5 5 6 . 5 5 7 . 5 5 8 . 5

59.5 60.5 61.5 62.5 63.5 64.5 6 5 . 5

412,491 477,820 830,157 8 4 4 , 4 4 3 8 5 9 , 5 5 7

I, 047,847 1 , 2 6 6 , 5 0 7 1,216,446

9 8 5 , 246 I, 031,962

1,031,988 1,030,972 1,028,665 1,095,520 1,021,561 656,241 631,653 610,183 415,227 160,445

137,777 135,440

8 3 , 9 0 5 81,800 81,105 7 3 , 4 6 0

0.0000 0 . 0 0 0 0 0 * 0 0 0 0 0 * 0000 0.0000 0.0000 0 . 0 0 0 0 0 * 0000 0.0000 0 . 0 0 0 0

0.0000 0 * 0000 0 * 0000

3,060 0 . 0 0 2 8 0 . 0 0 0 0 0 . 0 0 0 0 0 . 0 0 0 0 0 * 0000

2,474 0 . 0 0 6 0 0.0000

0 . 0 0 0 0 0 * 0000 0 . 0 0 0 0 0.OOOQ 0.0000 0. ouoo

1 * 0 0 0 0 1.0000 1.0000 3. * 0000 1 0000 I. 0000 1.0000 1 * 0000 1.0000 1.0000

1.0000 1.0000 1 oouo 0 . 9 9 7 2 5.0000 1.0000 1.0000

0 . 9 9 4 0 1.0000

1. oaoo

I. 0000 1.0000 1.0000 1.0000 I * OD00 1.0000

89. a6 8 9 . 8 6 8 9 . 8 6 8 9 . 8 6 8 9 . 8 6 8 9 . 8 6 a9..86 8 9 - 8 6 89. a6 8 9 . 8 6

0 9 . 8 6 89.86 8 9 . 8 6 8 9 . 8 6 89.61 89.61 89.61 89.61 89.61 8 9 . 0 7

8 9 . 0 7 8 9 . 0 7 8 9 . 0 7 89.07 8 9 . 0 7 89-07 8 9 . C 7

\

111-27

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i I

I

ENTERGY ARKANSAS, INC.

ACCOUNT 3 2 0 . 2 0 LAND RIGHTS

ORIGINAL LIFE TABLE

PLACEMENT BAND 1999-1999 EXPERIENCE BAND 1 9 9 9 - 2 0 0 8

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

0.0 0 . 5 1.5 2.5 3.5 4 . 5 5 . 5 6 . 5 7 . 5 8.5

1,598,140 1 , 5 9 8 I 140 I, 598,140 1,598,140 1,598,140 1,598,140 I, 598,140 1 , 598,140

1,598,140 I , 598,140

0.0000 1.0000 100.00 0 . 0 0 0 0 1.0000 100.00 0.0000 1.0000 100.00 0.0000 1.0000 100.00 0.0000 1.0000 100.00 0.0000 1.0000 100.00 0.0000 1.0000 100.00 0 . 0 0 0 0 1.0000 100.00 0.OOOQ 1.OOOQ 100 * 00 0.0000 1.0000 100.00

9 . 5 100.00

I

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1 I

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I

I

I

111-30

ENTERGY ARKANSAS, INC.

ACCOUNT 321.00 STRUCTURES AND IMPROVEMENTS

ORIGINAL LIFE TABLE

PLACEMENT B W D 1925-2008 EXPERIENCE BAND 1996-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

0 . 0 8 7 , 4 7 7 , 5 0 3 0 . 5 91,760,704 1 . 5 94 , 616,549 2 . 5 92,694 , 4 4 7 3 . 5 94,435,390

5.5 106,933,098 6 . 5 106,919,748 7.5 104,495,247 8 . 5 89,513,819

4 . 5 9 7 , 2 m I 3 s 9

9 . 5 89,453,993 10.5 92,485,702 11.5 102,787,644

1 3 . 5 90,425,821 14.5 78,841,584 15.5 224,223,433 16.5 221,724,783 17.5 212 , 071,3 12 18.5 2 0 3 , 7 8 0 , 9 0 5

12.5 99,ao8,031

19.5 20.5 21.5 22.5 2 3 . 5 2 4 . 5 2 5 . '5 2 6 . 5 2 7 . 5 29.5

2 0 4 , 8 1 2 , 5 3 7 204,845,943 243,947,001 243 , 670,2 14 234,003,505 221,808,846 220, a48 ,345 217,011,063 214,470,731

6 : ' 3 ,92 I ,P44

0 . 0 0 0 0 0.0000

300,000 0.0032 0 - 0000

5,879 0.0001 0 * 0 0 0 0

21 , 204 0.0002 1,156,823 0.0108

134 ,554 0.0013 13,931 0.0002

5 5 , 9 0 3 0.0006 36 , 827 0.0004

249,501 0.0024 163,487 0.0016 28,894 0,0003 15,699 0.0002

874,379 0.0039 6,868 0 . 0 0 0 0

5 9 , 6 2 5 0.0003 8,503 0 . 0 0 0 0

98,104 0 . 0 0 0 5 8 2 8 , 2 5 7 0 .0040 12,036 0.0000 1 4 , 1 0 3 0.0001

2 2 0 , 7 5 2 0.0009 106,011 0.0005

1 , 2 9 5 , 0 2 3 0.0059 234 , 434 0.0011 597,092 O.OO28 25,641 O.nO04

1.0000 1.0000 0.9968 1 0000 0 * 9 9 9 9 1.0000 0.9998 0 . 9 8 9 2 0 . 9 9 8 7 0.9998

0 . 9 9 9 4 0 . 9 9 9 6 0.9976 0.9984 0.9997 0 . 9 9 9 8 0.9961 1 * 0000 0 . 9 9 9 7 1.0000

0 . 9 9 9 5 0.9960 1.0000 0,9999 0 * 9991 0 . 9 9 9 5 0.9941

0 . 9 9 7 2 3.9996

o . w a 9

100 - 0 0 100.00 100.00

9 9 . 6 8 99.68 9 9 . 6 7 9 9 . 6 7 9 9 . 6 5 90.57 98.44

98.42 9 8 . 3 6 9 8 . 3 2 9 8 . 0 8 97 + 92 9 7 . 8 9 9 7 . 8 7 9 7 . 4 9 9 7 . 4 9 97.46

97.46 97.41 9 7 . 0 2 9 7 . 0 2 97.01 9 6 . 9 2 9 6 . 8 7 96.30 96.19 9 5 . 9 2

111-31

ENTERGY ARKANSAS, INC.

ACCOUNT 3 2 1 . 0 0 STRUCTURES ANI3 IMPROVEMENTS

ORIGINAL LIFE TABLE, CONT.

PLACEMENT BANI3 1 9 2 5 - 2 0 0 8 EXPERIENCE BAND 1996-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF BEGIhiING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL

3 9 . 5 40.5 41.5 42.5 43.5 4 4 . 5 4 5 . 5 46.5 47.5 48.5

49 :5 5 0 . 5 51.5 52.5 5 3 . 5 5 4 . 5 55.5 5 6 . 5 57.5 5 8 . 5

5 9 . 5 6 0 . 5 61.5 62.5 63.5 64.5 65.5 66.5 6 7 . 5 FS.5

111-32

I

/’

I

I

I

I

111-33

ENTERGY A R M S A S , INC.

ACCOUNT 3 2 2 . 0 0 REACTOR PLANT EQUIPMENT

ORIGINAL LIFE TAELE

PLACEMENT BAND 1974-2008 EXPERTENCE BAND 1996-2008

AGE AT BEGIN OF INTERVAL

0.0 0.5 1.5 2 . 5 3.5 4.5 S . 5 6 . 5 7.5 8 . 5

9.5 10.5 11.5 12.5 13.5 14.5 1 5 . 5 16.5 1 7 . 5 18.5

3 9 . 5 2 0 . 5 21.5 2 2 . 5 2 3 . 5 2 4 . 5 25 .5 2 6 . 5 2 7 . 5 2 8 . 5

2 4 . L .

? ' ) . 5 ; I . 5 12.4 3.3 * 5 34.5

EXPOSURES AT BEGINNING OF AGE INTERVAL

560,870,248 516,947,325 502,230,470 478,681,332 308,445,544 302,004,428 318,391,063 3 2 8 , 3 7 2 , 3 5 5

207,359,510 340,718,578

2 0 3 , 2 1 3 , 7 8 8 215,591,647 237,411,507 2 3 7 , 7 2 0 , 5 9 2 2 2 6 , 2 7 0 , 8 9 5

457,402,080 434,740,734 425,306,337 414,311,885

219,547,699

3 9 2 , 5 3 5 , 5 0 3 344,746,217 404,212,629 399,311 , 930 384,784,994 3 5 8 , 0 8 9 , 6 6 7 349,842,453 337,600,032 326,673,934 97,052,037

,.-45, ;,35, 1"4 3 4 , 5 ? ? , 1 ~ 5 7 2 , 5 3 1 , 0 5 6 72,514,270 7 1 , 5 1 8 , 8 9 2

RETIREMENTS DURING AGE RETMT INTERVAL EWTIO

41,809 0.0001 0 . 0 0 0 0

10,000 0 * 0 0 0 0 1,702,666 0.0036 3,551,812 0.0115 2,016 , 516 0 . 0 0 6 7

857,271 0.0027 7,882,437 0 . 0 2 4 0 1,245,141 0.0037 1,625,378 0.0078

0.0000 1,821,273 0.0084 2,881,241 0.0121 4 , 0 4 8 , 5 4 1 0.0170 3,360,208 0.0149 7 , 9 0 0 , 5 4 4 0.0360 2,848,663 0 . 0 0 6 2 2,061,728 0.0047

- 1 , 7 6 8 , 6 9 0 0.0042 2,736,797 0.0066

2 7 , 3 7 3 , 498 0 . 0 6 9 7

411,554 0.0010 5 4 7 , 3 9 0 0.0014 346,309 0 . 0 0 0 9 520,869 0.0015

3,858,206 0.0110 9 8 8 , 2 2 3 0.0029

7,874,942 0.0241 66,444 O.OOQ7

3,376,637 0 - 0 0 9 8

SURV RATIO

0 . 9 9 9 9 1 . 0 0 0 0 r.0000 0.9964 0 . 9 8 8 5 0.9933 0.9973 0.9760 0 - 9 9 6 3 0 .9922

1.0000 0.9916 0.9879 0.9830 0.9851 0.9640 0.9938 0.9953 0 . 9 9 5 8 0 + 9934

0 . 9 3 0 3 0 - 9902 0.9990 0,9986 a. 9991 0 . 9 9 8 5 0 . 9 6 9 0 0.9971 0 . 9 7 5 9 O f 5 9 9 3

-4 >-'L 13 * 7 7 9 5 0.3938 0 . 3 3 3 9 0.3894

- . <

PCT SURV BEGIN OF INTERVAL

1 0 0 . 0 0 9 3 . 9 9 9 9 . 9 9 9 9 . 9 9 99.63

9 7 . 8 2 97.56 9 5 . 2 2 94.87

94.13 94.13 93.34 92.21 90.64 8 9 . 2 9 8 6 . 0 8 85.55

9 8 - 4 8

85-15 84.79

7 8 - 3 6 84.23

7 7 . 5 9 77.51 77.40 77.33 77.21 76.36 76.14 '74 * 3 1

? .! . 2 c; : 4 . i3 57-78 s 7 . 7 7 57.76 57.15

-

111-34

I

j: ,-: r : .

I

111-35

ENTERGY AQKANSAS , INC.

ACCOL'NT 323.00 TURBOGENERATOR UNITS

ORIGINAL LIFE TABLE

PLACEMENT BANn 1951-2008 EXPERIENCE BAND 1996-2008

AGE AT EXPOSURES AT RETIRSMENTS PCT SURV BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO M T I O TNTERVAL

0 . 0 0.5 1.5 2.5 3.5 4.5 5.5 6 . 5 7 . 5 8 . 5

105,a58,1a4

38, s s o , x a

9 a t 9 5 a , i 4 1

9 5 8 733,540 97,149,636

94,432,654 9 6 , 2 7 7 , 4 2 6

105 , 017 , 179 128,787,644 106,337,067

9.5 68 1 681 527 10.5 55,270,490 11.5 56,074,382 12.5 60,046,021 1 3 . 5 52,894,981. 14.5 6 1 , 495,147 15.5 152 ,170 ,327 16.5 151,300,446 17.5 153,470,649 18.5 152,669,078

1 9 . 5 2 0 . 5 21.5 22.5 23.5 24.5 25.5 2 6 . 5 2 7 . 5 2P.5

139,358,331 106,548,491 138,477,200 138,037,650 135,899, I13 132,258,348 127,437,083 127,174,425 116,542,818

3 9 , 8 5 5 , 3 3 3

0.0000 0.0000 0 . 0 0 0 0 0.0000 0.0000

1 0 2 , 953 0.0021 0.0000

40,000 0.0004 0.0000 0 . 0 0 0 0

0.0000 13,658 0.0002 4,688 0.0001

0 * 0 0 0 0 0 . 0 0 0 0 0.0000

131,332 0 . 0 0 0 9 182,188 0.0012 550,120 0.0036

5,830,026 0.0382

9 , 8 3 7 , 3 6 7 0.0706 50,510 0 -0005 31,229 0 . 0 0 0 2

2 6 0 , 0 3 8 0.0019 768,698 0 . 0 0 5 7

1,092,417 0.0083 3 5 , 9 5 3 0.0003

0 - 0000 66,854 0 . 0 0 0 6

r,. 9009

1.0000 1.0000 I. 0000 I * 0000 1 - 0000 0 . 9 9 8 9 1 - 0000 0.9996 I * 0000 1.0000

1 - 0000 0 + 9998 0.9999 1.0000 1 * 0000 I. 0000 0.9991 0 . 9 9 8 8 0.9964 0 . 9 6 1 8

0.9294 0 .9995 0 . 9 9 9 8 0 . 9 9 8 1 0.9943 0.9917 O f 9997 1.0000 0.9994 I. 0 3 0 0

100.00 100.00 100 * 00 100.00 100.00 100.00

9 9 . 8 9 9 9 . 8 9 9 9 . 8 5 9 9 . 8 5

9 9 . 8 5 9 9 . 8 5 9 9 . 8 3 9 9 . 8 2 99.82 99.82 9 9 . 8 2 9 9 . 7 3 9 9 61 99.25

9 5 . 4 6 8 8 . 7 2

98.66 88.49 8 7 . 9 9 8 7 . 2 6 8 7 . 2 3 8 7 . 2 3 a7*15

88.68

111-36

ENTERGY ARKANSAS, INC.

ACCOUNT 323.00 TURBOGENERATOR L'NTTS

ORIGINAL L I F E TABLE I CONT.

PWIICEMENT BAND 1351-2008 EXPERIENCE BAND 1996-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN OF B E G I W I N G OF DURING AGE REPMT SURV BEGIN OF INTERVAL AGE INTERi'AL I h i E i l V A L KATEO RATIO INTERVAL

3 9 . 5 40.5 41.5 42.5 43.5 44.5 45.5 46.5 47.5 4 8 . 5

4 9 . 5 50.5 51.5 52.5 53.5 54.5 55.5 5 6 . 5 5 7 . 5

2,620 2,620 2 , 6 2 0 2,620 2,620

2,620 2 , 6 2 0 2 , 620 2,620 2 I 620 2,620 2 , 6 2 0 2 , 6 2 0

0.0000 0.0000 0 . 0 0 0 0 0 . 0 0 0 0 0.0000

0. vooo 0 . 0 0 0 0 0.0000 0 - 0000 0 * 0000 0.0000 0.0000 0.0000

111-37

I

I 11-38

ENTERGY AFKANSAS , INC . ACCOUNT 324.00 ACCESSORY ELECTRIC EQUIPMENT

ORIGINAL L I F E TABLE

PLACEMENT BAND 1974-2008 EXPERIENCE BAVD 1996-2008

AGE AT EXPOSURES AT RETIREMENTS PCT SURV BEGIN dF BEGINNING OF DURING AGE: RETMT SURV BEGIN OF INTERVAL AGE INTERVAL INTERVAL RATIO RATIO lNTERVAL

0.0 0.5 1.5 2 . 5 3 . 5 4.5 5.5 6 . 5 7.5 8 . 5

31 , 281,465 43,008,074 51,258,662 61,60I,OOO 52,156,207 6 8 , 5 3 5 , 8 0 6 72,387,405 8 0 , 0 3 5 , 7 0 8 81,195,634 79,205,772

9 . 5 78,548,062 10.5 83,916,139 11.5 207,976,689 12.5 105,503,891 13.5 9 5 , 5 0 8 , 2 5 2 1 4 . 5 94 , 526,732 1 5 . 5 151,364,587 16.5 149,918,446

18.5 136,977,398 17.5 142,562,245

19.5 2 0 . 5 21.5 22.5 23.5 21.5 2 5 . 5 2 6 . S 2 7 * r 2 . 5

128,957,510 126,516,281 239,945,513 136 , 736,297 129,264,533 193,388,568 101,171,577

9 8 , 6 8 5 , 7 7 6 91,053,595 14, c71,;5$1

0 * 0 0 0 0 0.0000

60,000 0.0012 23,839 0.0004

*102,647 0.0017 0 * 0000 0.0000

174,882 0.0022 0 * 0000 0.0000

0.0000 0 * 0000 0.0000

48,733 0 . O O O 5 14 , 353 0.0002

2 8 2 , 7 2 9 0.0030 119,541 0.0008

2 , 4 8 4 0.0000 573 0.0000

522,284 0 . 0 0 3 8

2 0 7 , 8 3 2 0.0016 19,613 0 . 0 0 0 2

214,690 0.0015 103,120 0.0008 408,876 0 . 0 0 3 2 16, e 7 8 0.0002 6,239 0.0001

47,559 0.0005 2 , 4 0 8 0.0000 5,040 C . 9 O I 1 2

1 * 0 0 0 0 1.0000 0.9988 0.9996 0 . 9 9 8 3 I * 0000 1 * 0000

1.0000 1.0000

0 . 9 9 7 8

1 * 0000 1.0000 1.0000 0 - 9995 0.9998 0.9970 0.9992 1 * 0000 1 * 0000 0.9962

0.9984 0.9998 0 .9985 0 . 9 9 9 2 0.9968 0.3998 0.9999 0.9995 1 * 0000 c . 3499

100 - 0 0 100.00 100.00

9 9 . 8 8 99.84 99.67 9 9 . 6 7 9 9 . 6 7 99.45 99.45

9 9 . 4 5 9 9 . 4 5 99.45 9 9 . 4 5 99.40 99.38 9 9 . 0 8 9 9 . 0 0 99.00 99.00

9 8 . 6 2 98.46 9 8 . 4 4 98.29 98.21 9 7 . 9 0 9 7 . 8 8 97.07 9 7 . 8 2 9 7 - 4 2

I 11-39