Method

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 ofelectric 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 h e 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 h e 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 lifefora 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 h e remaining life expectancy, the probable life, and the frequency curve can be
calculated. In Figure 1, a typical smooth survivor curve and t h e derived curves are
illustrated. The average life is obtained by calculating t h e 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 calcufatedfor each year of age, t h e probable life curve
shown in the chart can be developed. The frequency c u v e 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 associatedfrequency curve with respectto 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
classificationof property survivor characteristics into 18type 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. 1935
II-5
b
3
L
0
0 0 0 0 0 0 0 0 0 0
o m Ql b to u3 v m tu F
f
11-6
E
E
0
0
F
0
a,
0
Q) r-0
0
tD
0
u1 *
0 0
m
0
E\t
0
.
r
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 -I957,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 h e annual rate method) is illustrated through the use of an example in the
following text, and is aJso explained in several publications,including "StatisticalAnalyses
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 h e survivor curve (lifetable) 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 (EngineeringValuation). 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
11-10
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 ofa life table follows. The example includes schedules of annual
a g e d 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
illustratet h e 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 h e 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 $10,000retirement
occurred during the age interval between 4% and 5% years on f h e 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
I
which encompasses only one-half year.
The total retirements occurring in each age interval in a band are determined by
summing the amounts for each transaction year-installation year combination forthat age
11-11
TABLE 1. RETIREMENTS FOR EACH YEAR 1999-2008
SUMMARIZED BY AGE INTERVAL
Experience Band 1999-2008

Placement Band 1994-2008
Retirements. Thousands of DoIlars
-- -
I_--
Year Durinq Year Total During Age

Placed 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Ase Interval Interval
(V (2) (3) (4) (5) (6) (7) (8) (9) (101 (1V (12) (13)
1994 10 11 12 13 14 16 23 24 25 26 26
1995 11 1 12 13 15 16 18 20 21 22 19 44
1996 11 12 13 PI 16 17 19 21 22 18 64
1997 8 9 15 16 17 a3
-
- 1998 9 IO I1 19. 20 93
I
2
N
I999 4 9 10 I1 12 14 75 16 20 105
200Q 5 1j 12 -I3 14 15 16 18 20 113
2001 6 12 13 124
2002 6 13 134
2003 7 14 16 17 I9 143
2004 8 18 20 22 23 146 3%4X
2005 9 20 22 25 150 2'/2-3'/2
2006 11 23 25 151 1X-ZX!
2007 I1 24 153 x-1 '/z
2008 - - - -
13 80 0-%
Total 53
c -
68 - -
157 I96 231 -
273 308
==.=a 1,606
TABLE 2. OTHER TRANSACTIONS FOR EACH YEAR 1999-2008
Experience Band 2999-2008 Placement Band 1994 -2008
Acquisitions, Transfers and Sales, Thousands of Dollars

Year Durinq Year Total During Age
- -
Placed
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Aselntervai Interval
(4 1 (2) I31 (4) (5) (6) (7) (8) (9) (W (11) (12) (1: 3)
1994 13%-141/2
1995 12%131/1
1996 1IK-l21/2
1997 60 IO%-ll%
1998 91/2-10%
- I999 (5) 8%-9?4
2
W
2000 1 6 7%-8 ?4
2001 6%-7'/2
2002 - 5?4-6?4
2003 22" 41/-51/2
2004 - 354%
2005 2%-3 ?4
2006 1%-2%
2007 M-1w
2008 0-?4
b
Transfer Affecting Exposures at Beginning of Year
Transfer Affecting Exposures at End of Year
Sale with Continued Use
Parentheses denote Credit amount.
11-13
interval. For example, t h e total of S143,OOO retired for age interval 4%5X is the sum of
t h e retirementsentered 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 s u m of:
1 0 + 12+ 7 3 + 11 + 13-t. 1 3 + 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
11-15.
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 b e removed from t h e plant exposed to retirement at the besinninq of the
followinq vear.
11-14
TABLE 3. PLANT EXPOSED TO RETIREMENT
JANUARY IOF EACH YEAR 1999-2008
Experience Band 1999-2008 Placement Band 1994-2008
ExPosures, Thousands of Dollars

Annual Survivors at the Besinninq of the Year Total at
Year Beginning of Age
Placed Aqe Interval Interval
(1) (12) (13)
1994
1995
1996
1997
1998
338
376
245
367
!i , i ,
234
357 346
E
334
~
f95
212
241
289
32I
239
194
224
276
307
216
174
205
262
297
I92
153
184
242
280
I6i'
131
162
226
261
167
323
531
823
1,097
13%-14%
12%-13%
11%-12%
fOW-lI%
9%-10%
--
1
I-L
u1
1999
2000
2001
420" 436
460'
407
455
510'
397
444
504
386
432
492
%464L
479
361
405
347 332 316 1,503 8%-9?4
7%8X
6X-7X
2002 580a 574 56I 546 530 50I 482 3,057 5X-GW
2003 660" 653 639 4%-5%
2004 750" 742 3%4X
2005 850a 841 821 799 4,955 2%3%
2006 960a 949 926 5,719 1%-2%
2007 1,080' 1,069 6,579 %-1 x
2008 7-490 0-%
Total 94.780
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 beginningof each
successive transaction year. For example, the exposures for the installationyear 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 h e beginning ofthe age intervalare obtained from
the corresponding age interval of t h e 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 h e result of dividing the retirements during the age interval by the
exposures at the beginning ofthe 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 unrivor Beginning of
Interval Aqe Interval I ntemal Ratio Rat io Aqe Interval
(1) (2) (3) (4) (5) (6)
0.0 7,490 80 0.0107 0.9893 100.00
0.5 6,579 153 0.0233 0.9767 98.93
1.5 5,719 151 0.0264 0.9736 96.62
2.5 4,955 -l50 0.0303 0.9697 94.07
3.5 4,332 146 0.0337 0.9663 91.22
4.5 3,789 143 0.0377 0.9623 88.15
5.5 3,057 131 0.0429 0.9571 84.83
6.5 2,463 124 0.0503 0.9497 81.19
7.5 1,952 113 0.0579 0.9421 77.11
8.5 4,503 I05 0.0699 0.9301 72.65
9.5 1,097 93 0.0848 0.9152 67.57
10.5 823 03 0.1009 0.8991 61.84
11.5 531 64 0.1205 0.8795 55.60
12.5 323 44 0.1362 0.8638 48.90
13.5 I67 -
26 0.1557 0.8443 42.24
35.66
Total 44,780
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 = 1.0000minus 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:
Percent suwiving at age 4% - 88.15

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 - 1.000 - 0.0377 = 0.9623
Percent surviving at age 5% = (88.15) x (0.9623)= 84.83
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 originalsurvivor 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 h e 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 h e best fit and appears to be
better than either the L I or the SO. In Figure 9, the three fittings, 12-11,12-50and 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 indicationsof complete survivor patterns. These accounts represent 82% ofthe
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
311 Structures and Improvements
312 Boiler Plant Equipment
NUCLEAR PLANT
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
DlSTRlBUTION PLANT
362 Station Equipment
364 Poles, Towers and Fixtures
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 t h e 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 h e 51-R2 and
is based on the statistical indication for the period I987 through 2008. The 51-R2is 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 h e statistical indication forthe 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 conjunctionwith 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 h e retirement rate method.

The life span estimates forpower 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 h e
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
Probable
Depreciable Year in Retirement Life
Group Service Year SDan
S T m M PRODUCTION PLANT
White Bluffs Unit 1 1980 2040 60
White Sluffs Unit 2 1981 204 1 60
Couch Unit 'I 1943 2010 67
Couch Unit 2 3 954 2015 61
Independence Unit 1 7 983 2043 60
Lake Catherine Unit 1 1950 2017 67
lynch Unit 1947 2010 63
Lynch Unit 2 1949 2010 61
Lynch Unit 3 1954 2015 61
Moses Unit 1 1951 2016 65
Moses Unit 2 1951 2016 65
Ritchie Unit 1 1961 201 0 49
NUCLEAR P U N T
Arkansas Unit 1 1974 2034 60
Arkansas Unit 2 1980 2038 58
HYDRO PLANT
Carpenfer Unit 1 I932 2052 120
Carpenter Unit 2 1932 2052 120
Remmel Unit 1 1925 2052 127
Remmel Unit 2 1925 2052 127
Remmel Unit 3 1925 2052 'I2 i
11-27
Probable
Depreciable Year in Retirement Life
Groua Service Year Span
OTHER PRODUCTION PLANT
Ouachita Unit 1 2004 2034 30
Ritchie Gas Turbine Unit 3 1970 2015 45
Mabelvale Gas Turbine Unit 1 1970 2010 40
Mabefvale Gas Turbine Unit 2 1970 2010 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
355 Poles and Fixtures
Distribution Plant
36 I Structures and Improvements
364 Poles, Towers and Fixtures
367 Underground Conductors and Devices
371 Installations on Customers’ Premises
373 Street Lighting and Signal Systems
11-29
General Plant
The analysis for Account 365, Overhead Conductors and Devices. is used to
illustratethe 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 h e annual amounts.
Cost of removalwas relativelyconsistent 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 h e period but has diminished to
t h e 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 h e unit. Multiplying $33.41 per kilowatt
by 356,000kilowatts 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 $12,618,302 which is 25.29 percent of the original
cost ofthe 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 incorporatingestimates ofprevious 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)

Annual Accrual Rate, Percent =
Average Service Life
The calculated accrued depreciation for each depreciable property group represents that
portion of the depreciable cost of t h e 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 $1,000unit 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
S1,OOO (I- -) = $400.
10
G r o w Deareciation Procedures
When more than a single item of property is under consideration, a group procedure
for depreciation is appropriate because normally all ofthe 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, €herate of
annual depreciation is based on the average service Jife of the group, and this rate is
applied to t h e 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 lifegroup procedure, also known as the
unit summation procedure, the property group is subdivided according to service life. That
is, each equal lifegroup 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 h e 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 h e calculation of annual accruals for
a twelve-month period centered on the date of calculation.
The retirement during t h e 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
DETAILEDCOMPUTATION 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 END LIFE INTERVAL ACCRUAL lNST ACCRUALS SURVIVING FACTOR FACTOR
11) 12) 13) (4) !53=(14)43) (6) (7) (8) (9) (101
0 000 1 000 0 5Do 0 01733 0.01733000000 r

2 ~ 0 a 9a5487419t0 99 995337 0 0799 0 4400
1000 2 000 fSM1 0 11237 0 07491333333 2007 793070075243 99.92E483 0 0794 0 1 t91
2.000 3 000 2.500 0 30563 0.12225200OOO zoo6 7 a 3 2 i i a m n 99.7 17484 0 0785 0.1963
3 000 4 000 3 500 0 59954 0.17129714286 2005 7 6853351434 99,264901 0,0774 0.2709
4 000 5 ooo 4 500 o 97051 0.215fifiamam 2004 7 491a6049846 ga.479~76 0 0761 0.3425
5 000 6 000 5.500 1.45100 0.26381818182 2003 725211696311 97.269 120 0.0746 0.4103
6 000 7.000 6.500 2.16752 0.33346461538 2002 6 95347556451 95.459859 0.0728 0.4732
7 000 a.000 7.500 3.t1752 0.41566933333 2001 6 57a90859015 92.812-40 0.0709 0 5318
8 000 9.000 8.500 4 26516 0.50178352941 2000 6.12018215870 89.126001 0.0687 0 5840
9 000 10.000 9.500 5.52878 0.5819768421 1 1999 5.57830191302 84 229031 0.0662 0.6289
t o 000 11.000 10.500 6.70720 0.63878095238 1998 4,96792307578 78.1 1 to42 0.0636 0.6678
11 OM1 12 OW t 1.500 7.50363 0.65944608696 1997 4.31880955611 70.965626 0.0609 0.7004
12 000 13 aoo t2.m 7.97835 o.6~az6~oaooo 1996 3.66995251263 63.184635 0.0581 0.7263
13 (lo0 14.000 13.5IJO 7.84663 0.58123185185 1995 3.06020258670 55.2721 46 0.0554 0.7479
14 000 15.000 14.505 7 30330 0.50367586207 1994 2.51774872974 47.5971a i 0.0528 0.7656
15.000 16.000 15.500 6.51957 0.42061741935 1993 2.05560200903 40.785744 0.0504 0.7812
16.000 17.000 16 500 5.60743 0.34469272727 1992 1.67294701572 34.682242 0.0482 0.7953
17 000 18.000 17.500 4.92347 0.28134114286 1991 1.35993O08066 29.376794 0.0463 0.8103
18 O D 0 19.000 18 500 4.26989 0.23080486486 1990 1.10385107680 24.7aoi i5 0.0445 0.8233
19.000 20.000 19.500 3.73333 0.19145282051 1989 0.a9272a2341I 20,778507 0.0430 0.8385
20 000 21.000 20.500 3.28189 0.16009219512 ma 0.7i6m7263~ 17.27oa97 0.0415 0.8508
21 000 22.000 21 500 2.87965 0 133g3720930 1987 0.56994102409 14,190128 0.0402 0.8643
22.00Q 23.000 22.500 2.51203 0 11 164577778 1986 0.44714953055 1t.4942a6 0.0389 0.8753
23.000 24.000 23.500 2.16472 0.09211574468 19B5 0.34526876932 9.15sgoa 0.0377 0.8860
24.OClQ 25.000 24.500 1.83184 0.07476897959 1984 0.261a264071 a 7 1m2a 0.0366 0.8967
25.000 26 ooo 25.500 1.52103 o.oiiwa23529 1983 0.19461779974 5.481 192 0.0355 0.9053
26 000 27.000 26.5M1 1.23489 0.04659962264 1962 0.141493airo7a 4.103234 0.0345 0.9143
27.0M) 28.000 27.500 0.97565 0.03~7818182 1951 0.10045496855 2.997964 0.0335 0.9213
28.000 29.000 28.500 0.75109 0.02635403509 1980 0.06953886009 2.134593 0.0326 0.9291
29.000 30.000 29.500 0.56131 0.01902745763 1979 0.O4684811373 I 478395 0.0317 0 9352
30.000 3t.000 30.500 0.40524 0.01328983607 1978 0.03068946680 0.995060 0.0308 0.9394
31.000 32.000 3; .m 0.28403 0.00901682540 1977 0.019536t3615 Q 6x1386 0.0300 0.9450
32.000 33.000 32.500 0.19283 0.00593323077 1976 001206110806 0.411958 0.0243 0.9523
33.000 34.000 33.500 0.12681 0.00378537313 1975 0.00720180611 0.252134 0.0286 0 9581
34 000 35.000 34.500 0.0a153 0.0023631a~41 1974 0.00412752534 0.147963 0.0279 0 9626
35.000 36.000 35.500 0.05076 0.001429B5915 1973 0.00223f00156 0.081819 0.0273 0 9592
xaoo 37.000 36.5~0 0.02965 0.00oamzan 1972 0.00110990760 Q.041616 0.0267 0.9746
37 MI0 38.000 37.500 0.01579 0.00042106667 1971 0.000493209a8 0.01 a897 0.0261 0 9788
38 000 39.000 35.500 0.00734 0.00019W935 is70 a.ooo1a735187 O.OD7331 0.0256 0.9856
39 000 40.000 39.500 0.00277 o o o o o m 2 6 ~ a 1969 0.00005696391 0.002274 0.0251 0.9915
40 000 41 000 40.500 0.00077 0.00001401235 1968 0.00001239444 0.000502 0.0247 1 ouoo
41 000 42.000 41 500 0.0MHI 0.00000265060 1967 0.00OMH56297 0.000064 0.0000 10000
42 000 42.150 42.075 0.00001 0 00000023767 1966 0.00000001783 0.00000 t 0.oM)o 1.oooo
T'OTAL 100 0c000
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 0.07491333333 plus all of the succeeding figures in column 5.
Only one-half of the annual accrual for t h e vintage's current age interval group is included
inthe 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-L2.5survivor curve, is
shown in column 8 for each age interval. The annual factor, shown in column 9, is the
result of dividing t h e summation of annual accruals (column 7)by t h e average percent
surviving (column 8).

The accrued factor. shown in column I O . equals the annual factor multiplied by t h e
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 t h e account as of December 31, 2008. The
remaining life annual accrual for each vintage is determined by dividing future book
accruals {originalcast 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)

Composite Remaining Life = Life
Book Cost
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
Composite Remaining Life =

Book Cost - Calc. Reserve
Whole Life Annual Accnial
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 lifeannuaI 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 h e 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 ofproperty, but a very small portion of depreciable electric plant
in service. The accounts and their amortization periods are as follows:
Amortization
Period,
Account Years
ELECTRIC PLANT
391.9 Office Furniture and Equipment 20
391.2 Office Furniture and Equipment - Info Sys 5
391.3 Office Furniture and Equipment -
Data Handling Equipment 15
393 Stores Equipment 15
394 Tools, Shop and Garage Equipment 15
395 Laboratory Equipment 10
397.1 Communication Equipment io
397.2 Communication Equipment - Microwave 15
398 Miscellaneous Equipment 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
I
I
111-1 PART 111. RESULTS OF STUDY
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 t h e
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 depreciationaccruafrates are applicable specificallyto 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 Iof 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 h e 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 DEPAEClAflONRATES AS OF DECEMBER 31.2WE
NET CALCULATED COMPOSlfE

SURVIVOR SALVAGE ORIGINAL BOOK FUTURE
I _ _ _ _ ACCOg.NT
:1 i
--CURVE
I21
PERCENT
(31
COST
I41
REsEA v E ACCRUALS
(61
STEAM wtooucnm u r n
Jfro6odas 1 435us 81 3111

34368w51 20 IN2 430 423 381
B 975 092 10 5.653 747 84 O X
032 612 a7 MQ 284 5s 781
832692% 89f J10 $18 $52
17C651269 1 694 %39 Bb m
340 073 53 284.244 4,459
i o 8 5 5 3 t9
~ 7 BYt.841 1U.oM
97075167 750w1 I? 540
1 339.03ae9 109.227 120 023
1.124 033 76 1 516 9 9 6-
1.137 52399 1.534 6% 6 919
1.257 394 $6 f 520524 29.m3
4 675 6 E Q0 5.272078 lSo7Be
1,379 850 07 296x4 240 076
1 101,447 75 1 347 967 91 E O
1,33336992 1.641 601 lt592G
2.051 OH2 85 2 511 3 7 35 83U
488 94064 194952 61 541
138401815 1699844 21 690
t 36;19=6? 1 669 225 21 331
2.471 624 35 2.718.744 2s ti8
1.844,01116 t 668.m 4IQ El73
83.434 m5 40 71 409057 26T31091
f5.W 5 45.163 9?046 4509589 I v 9 853 3 rA

7542 5 I 3 5 607.255 37 W639CH 2 579074 I in
7CR2 5 Ilf.lZ7.tO3 14 a5 101 igo 2220 1% I r5
ICRZ 5 27 21928 17 395 2 870 I.1 54
7542 5 1 !12M944 1 089 a46 2b3 122 21 R6
75 R2 5 a 142 191 u 7 900 359 J'fr6.46 560
75-A2 5 163836592? 11509819 241 877 I 18
7s.m 5 72 216 093 09 51 477 Z% 1a 8 2 3 1It
75R2 5 421 w4 27 361.7U 21 140 644
15 R2 5 2 493 451 45 ZY1443t llvl !al 483
3542 5 2.251 €41 20 2.457 nj? 07.441 3 89
15.m5 5 575 712 40 5031 ?&3 344 5% E 18
75425 2493ooai~e 26.585 700 1,WW .a01
fSR25 5pmv83 55 141 1t t'l? 21 52
7542 5 3580125d6 2.079 Sl 1639 527 41 l ?
7CR2 5 0.1u.zfe39 0.136.972 431 745 5 31
75R2 5 lB1769004 339.- 201 343 15 4B
35.w 5 2&1047346 3548080 s948 1 30
75R2 5 2.895 551 35 3 505.546 37 556 tXI
35425 779.346 59 4421.704 m 443 40 a4
35425 m.t75~53
83 20919.54t 2 797.1lG
c
-
13 85
418 181 031 t o 319.350.102 is mn12 321

ENTERGY ARKANSAS. INC.
SUMMARY OF ESTIMATED SURWOR CURVE3.N~3ALVAGE,ORlGlNALCOST. BOOK RESERVEANDCALCUWTED

ANNUAL DEPRECIATIONRATES AS OF DECEMBER 31,2006
CALCULATED
OUIGHAL BOOK FUtUUE ANNUAL ACCRUAL
COST RESERVE ACCRUALS AMOUNT RATE
(4) i51 I61 171 IWIW41
678 049 19 2n 569 522 52 B tW??

313 1~7.20206 23661 010 1s 303GIH 811 4 s
4.184 ~ 5 e 2 35,440 930 14 (He 834 34B 870
51.012 75 7 31fi M,IW 9 Pi1
857 430 07 ea9 891 24t91t I52 3 t t
9 878 2 f t W 4943656 ?178'jl37 153 110
BSS 348 4 t 649 055 355,211 13 197
31.924 Am86 24,481,155 T2 R'O 331 479 380
152.41603 75 020 1375CIZ 16 514
1 m.36oza 2.201 540 186 315 23 e w
1.7W3490 2.197 E44 186.040 23 8LIB
x172552at J.ZM.652 1110892 163 627
t l M1.a86 16892 615 3 6 3 216 447 407
21 65521 0 29.018 4,Yl
3 UY a35 51 2,672983 t ?99 116 1MB245
10.ar0.42103 10453.511 6.112 es.1 64B.W
3.327.070W 3.423.611 1,OM w 146 1 6 8
3 270.118 82 31131.324 445,431 133.551
125 W t 60 1223f5 33 737 a 3qa
19W.594 22 21.52z2.1 3 035 6GU 2 MI1170
185.fizS.W974 16?.W2.@3 w014rn 7.238 d40
m7.m 1 0 2 t 553 w 147

15.m129, 7 619 t t e 2?4 591
8866772 8 042 4G1 2& 9w
212.027 195 458 30 197
554.872 227 0.31 148618
3.485 627 435114 &.a2
20 a8
3 6681 352
?38833 373 w 11311
9 a43 514 4.d86 €51 1% 538
2ss.e IS3 392 re 172
12P.fP7 511 .ru 61 >a3
1.175.127 .ill B ? l 48 ew
m5,170 a7zm 104.12r
5.W2.814 1 962 6f2 233 391
24.tI7 JS? 116 9J ~ Z
30f.117 21 032 18 925
€49 217 to1 255 465 911
1.102.83t a s 424 137076
1015043 aap m 123 12G
1 ,ou.922 a32 aot 1154f9
e m t 40110 32 159
3.760,98? 63n oa3 dlB M I
50 BBt. 192 M.650 OOP 2 87Q 301

ENTERGY ARKANSAS, INC.
SUMMARY OF ESTlMATEO SURVIVOR CURVES. M€Y SALVAGE.ORlGHAL COST, BOOK RESERVE AND CALCULAED
ANNUAL OEPRECCIATKIHRATES AS OF DECEMBER a<, 2W
NET CALCUL~TEO COMPOSlfE

SURVIVOR SALVAG6 ORJGUJAL BOOK FUfUAf
M
lb
55m 2 307 5 4 4 2 32 261
I w0.m 1.211 840 173 23 I
MLI 607 d40 4 3 0 t 69 23 P
124924 246 492 13 r3 64
1MlW1 6 l 157 I 1 4s Is,
290,034 77.a55 5w 59
555.195 Lw 192 1 JI I4 1
1.147 470 io10 ?I! 204 Id 0
1511 3.M 821 512 174 25 6
755 395 655 493 r ns 81
314,883 41 538 157 a3
M8,576 40 145 191 03
1t8.44t 70211 fr *& 63
475.424 4 ~ t . w 0 :a 6)
47.145 48111 th d
' G4
154.183 12 des 6 94 14
131.142 285 355 614e 1%
446 537 3'10 w2 1008 62
126.799 512 624 1461 14
222.m 18OM 141 I t
Zn.m 18 195 143 10
527 739 $33191 l6Ro IS
w.ea .-
I
1B5232 11 a6 1 'I
12.786.909 9 . ~ 789
1 lsai 50
3.48 13.2
70433 ' 0 1.mt39fB 440.7H l.l57.414 a0 9x4
b6,mO9233 33 74.612 324654Bt 1 192 345 1R)

122,788 990 36 85.750.4tO 37 o a yH 1519.235 I29
217,233.251 W 14i.IB(I.m2 I6 073,190 2856614 1 J1
aoB.231.3w 35 260 666.m 145 565 252 S 62a. 182 t 39
I rmwe 3 31
i o 730 523 4 41
19,Ml 5%
.+1__
3 37
41 542 163 3 82
ENTEAGY ARKANSAS. INC.
SUMMARY OF ESTIMATEDSURVIVOR CURVES. NET SALVAGE ORIGINAL COST. BOOK RESERVEAHD CALCULATED
AHHUAL DEPRECIATIONM Y E S AS OF DECEM3ER 51.1001
HET CALCULATED COMPOSITE

BOOK FU’IURE ANNUAL ACCRUAL REHAINlNG
.PI_-
ACCOUNT
_
.1-.-
It1
- -
SURWOR
CURVE
(21
SALVAGE
PERCENT
131
ORIGWAL
COST
14
RESERVE
1J1
ACCRUALS
I61
-1c_
AMOUNT
I71
RATE
iar17~14)
--191=1WIfl-
UfE
t.n419(XI 5 5
80 5% 764 22 4
84915,931 23 P
163 312Wl 23 4
26.431 556 27 135690R3 It2

98 418.81306 71,325214 2.14
114.702 085 83 80,553 550 25 4
239 552 455 16 165441.653 21 9
19 743 282 f i b
54 173.320 21 2
23 gal ow 25 2
128.1 81.659 24 P
1.0 63,7R , 426 ZOA
7SR3 0 267 3?0 97 47202 3 104 142 ‘.e 2
61435665 2 16.Ki 430 702 9937 1tt

541.mI t 551.488 17 512 419 008
91a48 ao 551.455 I7508 419 000
803.418 31 314.231 494 387 11.629 1 45
63529 56 58.701 a.m 168 OM
0B 69 IS em 18.M3 458 0 44
09.388 ZB M.241 961f 223 0 15
2.756081 11 1892494 1 a01 3Qt 23 251 IJ 04
2 592,54989 E&828 1 364 977 a t 539 f 14 42 %

1,358,261 09 1.181.351 310 536 l0CU 0 18 29 I
1 W6,W 56 1.224.leB ?e9 151 10 % 0 75 26 1
B 135.09297 2.Ojg.71S 6881 886 159 363 IF6 43 2
512.5% 08 431,141 132wb 4 216 0 B2 31 5
513 327 01 432.1% 332 &
* 4.21% OK! 31 9
513 d73 Od 432281 $32530 4213 OB? 31 4
14.749 563 42 6 KE.268 9644iY 234 484 1% dI I

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
SURVIVOR SALVAGE ORIGtNAL BOOK FUTURE --_.- ANNUAL ACCRURL
- -x -_ .- ACCOUfir
4'1
-
R
-CURVE
01
PERCENT COST
PI
RESERVE
[51
ACCAUALS
161
_-_- AMOUNT
171
--
RATE
w=try(d)
89(1?4Bd9 t63 639

246522734 1 353 573
2 081,370M) 1.212,m
048.223 45 188 373
s t a m ze 308 ma
1.3r152aP 46,114
ne,m578 87,610
82rl 37552 3.384 Z B I
81 i69 13 22 549 29
O t 2 73
t16.4265 1z0.059 113 0 TU
i35 e92 86 215984 4 658 1 59
116.01248 25.069 3.632 3 ifi
121 720 18 92 607 1If5 1 as
31,97706 I ? 9% 7% 2 40
31 973 31 27 812 765 2 33
011.600 87 531,106 r 4 150 1 14
1,451 >76 00 406061 2 U?

102.211 E1 95 01B OM
lW.915 82 85 682 * 4:
3w 1 9 6 6 I w45 I er
14 e37 51 7.245 125
3 *s
14,829~
11 025 73
7 227
7 210 a -
3W14818 610.3M 2 TO
2B,85?.12kDY 13.100.751 db6JW 1.M
a 655.843 w 8 559 E12 4%

J I 18,427 19 5054.648 1M
3 118.427 ts am649 403
3 1 r a r n t9 309p6-29 4 :&
24.758 94 1a.w 11 48
1 0 1 , s92 76 ?07 w 48
11437W 11M 663
11435w 1 PJ4 t i 45
13.55r 55 2 JM t1 Y
tB,173W 32 1: 973 at P 3f
... I . ...... ......... _....
-.om-
53
E E
U
4
E
0
;
+i i
e
c 3
c + Q L
..J
EHTERGYARKANSAS. 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
-- -.I.I-. ACCOUHT
Ill
SURVWOR
--CURVE
(21
SALVAGE
PERCENT
(31
0RItI H L
COSY
(4
BOQK
RES E RUE
1%
FUTURE
ACCRUALS
(61
ANNUAL ACCpUAL
AUOUNf
171
_-_
UAlf
10l=tlyill
REMMNING
__-_
UFE
LBl~I6Wl
0 21 S 9 039 21 io1 m
151 12 ~19.520 25 003 t 7 9
ltOl 128 582.892 352 327 1m
1201 78 J25.2t7 92 630,210
t2Ol 52 818 MI 211 411 1%
1251 103 914.773 meat 143
a 2.274 8 391
(51 2 979 38 1 1 1
0 23 312 93 469
197.0&8>74 aas.m.ua
1115 153 Bo 579 rn 14 m 0 59 40 B

13 168,28132 8127513 255 l?5 104 33 0
3WW1.30739 236Md 192 7 237,m 2 31 3I 5
440.323 180 57 3 4 322 a32 1923Gm 4 I7 re 7
353.446 6Dt 97 183 IW.526 16.086 ?Bo 4 5s I76
7a.630.335 94 IO ai0 222 3 G94 844 4 ro 19 2
127.230 537 72 65 658.1U5 i 5 w m 2 81 18 4
533,21!3453& 3n.185 261 27 754 205 521 14 4
94548.994 23 61 5 t 2 9 6 2 136815 2 26 iB B
fD2.698.93941 73.119 215 3671 914 3 513 io 1
t%.MS.M3 85 68673 7 a 4 6Jo 582 3 -55 14 8
30m . 4 3 6 15 16841 512 2 619 2W 0 33 04
f6.887.47041 za.w.m 2.909686 3 3D 96
zzn.~r4;12~2 1.660,Mt.lM Qf,06W07 4.00 If 7
WRt 5 1101 63 890 6W 45 21819 312 464W 411 1 311 692 2 30 30 6

2LEsa 0 1 705 6E5 Of E83750 1021 939 97 991 5 75 164
19 381 eB 18.W u 0
5-60 0 22 097 415 15 14625a2 f A13 113 2 m.532 36
n tifiemu U,W6Ed 7 472 123 2 085 552 3G
741 529 35 W.rJ16 1756t6 $ 4 970 11 ?

12 878 39 5 010 I .m9 591 It 7
012c92oB m.7u 448 YJB 60 33a I4
10 559.206 03 1 219 273 4 339 834 1.213036 I 3
1.261 23 1 3 358 1 1 4 1 165 305 534 38
233 440 SB ZG7.BfO JO 6 3 24 855 I2
78887I3a28 444.713 7442- t 3218.18 61
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
MET CALCULATE0 COMPOSITE

IIALVAGE ORIGWAL
PPKCENY cow
131 14
7.256 201 0 0
1ESQ a 17 f69.7B3 9 210.635 1 2 Y X8f I2 26 In
WSQ 0
ad32 5 0
53,36568
3.8323[3532
JOB.Mf.255MI
2.1213302 31
l.M9,949 70
l.W8,812 04
m(347n3
4.7Hl.14825
2552.158 14
3 931,Po838
TOTAL NOMOEPRECIABLE PtANT 3a.198.ulP.75
TOT41 ELECYRH: PLANT
2 a2
3m
161
2 45
3 34
3 82
a 0
1 52
Is0
403
I
111-12 SERVICE LIFE STATtSTlCS

I
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 7 , 3 2 2 345 0.0000 1.0000 100 00 -
0.5 7,368,086 15 0.0000 1.0000 lOO.00
1.5 7 I 316,778 0.0000 1.0000 100.00
2.5 7 283 336 0.0000 1.0000 100 * 00
3.5 7 I 074 I 476 0.0000 1.0000 z o o * 00
4.5 7 , 763 , 064 0.0000 1.0000 100.00
5.5 8 , 024 , 966 9,525 0.0012 0.9988 100.00
6.5 7 , 615 ,6 6 5 40,328 0.0053 0.9947 99.88
7.5 6,137,734 0.0000 1.0000 99.35
8.5 4,810,192 0.0000 1.0000 99.35
9.5 5,022,821 9,108 0.0018 0.9982 99.35

10.5 5,227,xa 28,089 0-0054 0.9946 99.17
11.5 5,682,269 23,609 0.0042 0.9958 98.63
12.5 15,432,344 70,588 0,0046 0.9954 98.22
13.5 15,684,381 0.0000 I. 0000 97.77
14.5 23,110,936 4,899 0.0002 0.9998 97.77
15.5 54,a07,886 55,875 0.0010 0.9990 97.75
16.5 54,555,297 24 , 8 2 4 0.0005 0.9995 97.65
17.5 53,865,840 0 * 0000 1.0000 97 60 -
18.5 53 5 9 6 902 1,091 0.0000 1.0000 97 6 0+
19.5 53,554,820 8 0.0000 1.0000 97.60

20.5 53,457,408 17 0.0000 1.0000 97.60
21.5 53,198,044 24,697 0.0005 0.9995 97.60
22.5 52 ,4 9 9 , 0 7 0 5,180 0.0001 0.9999 97.55
23.5 52 ,294,002 31,399 0.0006 0.9994 97.54
24.5 52,090,425 13,116 0.0003 0,9997 97.48
25.5 46 I 020 , 235 0,0000 1.0000 97.45
26.5 45,153,871 -
0 0000 1.0000 97.45
27.5 37,242,915 0.0000 1 * 0000 97.45
28.5 e: 24;3,3cs 0 * oooc i . GCGG 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

BEGIN OF BEGINNING OF DURING AGE RETMT SURV BEGIN OF
INTERVAL AGE INTERVAL INTERVAL RATIO mTI0 INTERVAL,
39.5 2,032,559 57 0.0000 1 * 0000 97.20
40.5 2 , 974,743 18,225 0.0061 0.9939 97 2 0
41.5 6 ,424,276 0 * 0000 1 * 0000 96.61
42.5 7,520,161 0.0000 1 * 0000 96.61
43.5 7,768,339 0 * 0000 1 * 0000 96.61
44.5 10,035,810 0.0000 I. * 0000 96 61
45.5 12,14a,599 22,300 0.0018 0.9982 96 61
46.5 13,174,221 0.0000 1 * 0000 96 - 4 4
47.5 ioI4s3,a55 1,068 0.0001 0.9999 96.44
48.5 11 ,446,282 0.0000 1 * 0000 96.43
49.5 1 1 ,444,823 0 * 0000 1.0000 96.43

50.5 11,439,621 0 * 0000 1.0000 96.43
51.5 11,466,037 0.0000 1.0000 96.43
52.5 12,117,594 0.0000 1.0000 96.43
53.5 11,966,752 0.0000 1.0000 96.43
54.5 8,498,375 0.0000 1.0000 96.43
55.5 7,402,086 0.0000 1.0000 96.43
56.5 7,153,611 0.0000 1.0000 96.43
57.5 4,875,751 0 * 0000 1 - 0000 96.43
58-5 2,763,022 0 - 0000 1.0000 9 6 -43
59.5 1,705,297 0.0000 1.0000 96.43

60.5 1,700,295 0.0000 1,0000 96.43
61.5 7 0 4 ,S O 7 0.0000 I. 0000 96.43
62.5 703,64 I 0.0000 1.0000 96.43
63.5 703,415 0.0000 1.0000 96.43
64.5 671,069 0.0000 1.0000 36.43
65.5 96.43
111-15
. . ....
,--
. - , --
ACCOUNT 312.00 BOILER PLANT EQUIPMENT
ORIGINAL L I F E TABLE
PLACEMENT BAND 1943-2008 EXPERIENCE BAND 1 9 9 2 - 2 0 0 8
0.0 114,972,880 0 0000 - 1.0000 100 * 00
0.5 81,174,784 51,440 0.0006 0.9994 100,00
1.5 69,621,260 0.0000 1.0000 99.94
2.5 4is,9~~,a69 318 0.0000 1.0000 99.94
3.5 56,244,473 84,629 0.0015 0 -9 9 8 5 99.94
4.5 52,412,650 168 , 544 0.0032 0.9968 99.79
5.5 46,645,9 8 6 84 , 170 0.0018 0.9982 99.47
6.5 44,151,868 0.0000 1.0000 99.29
7.5 36,560,369 13,832 0.0004 0.9996 99.29
8.5 118 , 118,811 902 0.0000 1.0000 99.25
9.5 118,890,375 4 12 ,5 4 6 0.0035 0.9965 99.25

10.5 223,834 ,0 8 8 4,271 0.0000 1.0000 98.90
11.5 327,467,745 176,660 0.0005 0.9995 98.90
12.5 324,203,728 299,167 0.0009 0,9991 98.85
13.5 319,205,880 307,939 0.0010 0 I9990 98.76
14.5 317,848,324 254 , 9 9 5 0.0008 0.9992 98.66
15.5 315,921,200 1,381,879 0.0044 0.9956 -48.58
16.5 312,880,105 1,442,467 0.0046 0.9954 98.15
17.5 310,383,671 9 3 , 143 0.0003 0,9997 97.70
18.5 309,832,069 10,095 0.0000 I. 0000 97.67
19.5 309,369,186 64,884 0.0002 0.9998 97.67

20.5 308 , 807,013 9 9 5 ,7 2 5 0.0032 0.9968 97.65
21.5 326,603,264 789,339 0.0024 0.9976 97 * 34
22.5 325,136,318 1,306,034 0.0040 0.9960 97.11
23.5 322,175, I63 1 , 715 , 097 -0.0053 0 . 9 9 4 7 96.72
24.5 317,726,965 533,337 0,0017 0 . 9 9 8 3 94.21
25.5 232,876,602 5,078,987 0,0218 0 * 9782 96 0 5
I
26.5 222,099,505 494,509 0.0022 0.9978 93.96

27.5 129,637,945 1,019,432 0 . 0 0 8 5 0 . 9 9 1 5 -
93 7 5
28.5 20,735,637 0 0000- 1. GO(1C 32.95
2’3.5 2 + ! , 571, 2-35 t:. c900 2 2 .95

30.5 36,032,243 112,927 C.0031 .-
It. 35
31.5 37,9.~,69a 0 .OOOr! 32 * 6 6
32.5 37,857,377 0.9000 92.66
33.5 37,702 , 5 5 6 0 * 0000 92.66
34.5 37,512,903 0.0000 92.66
35.5 37 4 5 4 , 2 9 5
I 0.0000 32.66
36.5 -37,591, 2 2 4 0.0000 92.56
37.5 4$,!J:3,21s I;! , 5-76 1’) 01!?4 32. G <
23.5 2 3 , 7?;4,
6.14 28,U47 3.3rIOa 3 2 . E2
ACCOUNT 312.00 BOILER PLANT EQUTPMENT
ORIGINAL LIFE TABLE, CONT.
AGE AT EXPOSURES AT RETIREMENTS PCT 5URV
39.5 3 3,684,249 0 * 0000 1.0000 92.55
40.5 38,502,7~ 28,348 0.0007 0.9993 92.55
41.5 41,419,965 0.0000 1 .oooo 92.49
42.5 43,184,302 15,432 0.0004 0.9996 92.49
43.5 43,149,178 26,079 0.0006 0.9994 9 2 -45
44.5 43,123,913 0.0000 1.0000 92.39
45.5 43,088,346 0.0000 I. 0000 92 - 39
46.5 43,041,065 10,041 0.0002 0.9998 92 39
+
47.5 25,456,217 20,864 0.0008 0.9992 92.37

48.5 26,145,333 87 0.0000 1.0000 92.30
49.5 26,133,860 7,863 0.0003 0.9997 92.30

50.5 26,124,292 850 0,0000 3 * 0000 92.27
s1.5 26,119,168 0.0000 3.0000 92.27
52.5 26,115,985 17,531 0.0007 0.9993 92.27
53.5 25,769,343 0.0000 1.0000 92.21
54.5 14,341,373 0* 0000 1.0000 92.21
55.5 10,390,021 0.0000 1.0000 92.21
56.5 10,377,957 Q.0000 1.0000 92 -21
57.5 5,553,637 0.0000 1 - 0000 92.21
58.5 2,601,980 2,820 0.0011 0.9989 92.21
59.5 773,706 0.0000 1,0000 92.11

60.5 773,406 0.0000 1.0000 92.11
61.5 771,266 0.0000 1.0000 9 2 . I1
62.5 770,293 0.0000 1.0000 92.11
53.5 764,009 0.0000 1.0000 92.11
64.5 74 7,4 14 930 0.0012 0.9988 92.11
65.5 92.00
I
111-19
I
ACCOUNT 314.00 TURBCGENERATOR UNITS
PLACEMENT BAND 1943-2008 EXPERIENCE BAND 1996-2008
INTERVAL AGE INTERVAL INTERVAL RATIO =TI0 INTERVAL
0.0 15 , 9 6 5 , 9 2 3 0.0000 1.0000 100.00
0.5 15,532,166 0.0000 1.0000 100.00
1.5 18,644,260 0 * 0000 1.0000 100.00
2.5 17,663~~5 0.0000 1.0000 100.00
3.5 l a , 418 ,a05 0.0000 1 * 0000 100.00
4.5 19,484,172 0 * 0000 1.0000 100.00
5.5 17,983,805 2,682,927 0.0936 0.9064 100.00
6.5 15,691,835 20,000 0.0013 0.9987 90.64
7.5 15,556,508 0 .oooo 1.0000 90.52
8.5 ~o,937,3a4 0.0000 I. 0000 90.52
9.5 8,611,053 0.0000 I. 0000 90.52

10.5 8,300,085 9 0.0000 I. 0 0 0 0 90.52
11.5 9,208,645 496 0.0001 0.9999 90.52
12.5 40,169,450 15,094 0.0004 0.9996 90.51
13.5 42,183,401 26,958 0A006 0.9994 90.47
14.5 81,891,180 1,140,886 0.0139 0.9861 90.42
15.5 11a,720,873 49,824 0.0004 0 - 9996 89.16
16.5 118,218,886 0.0000 1.0000 89.12
17.5 117,124,433 3,853 0.0000 1.0000 89.12
18.5 116,792,001 0.0000 1 * 0000 89.12
19.5 1 1 6 , 6 9 4 500 12,780 0.0001 0.9999 89.12

20.5 116,326,727 198,811 0,0027 0.9983 89.11
21.5 116,058,153 0.0000 I. 0000 88.96
22.5 116,027,426 594,671 0.0051 0.9949 88.96
23.5 125,270,338 391,323 0.0034 0 9966 88.51
24.5 113,864,017 4,243 0.0000 1 .oooo 88.21
25.5 95,334,439 820,177 0.0086 0.9914 a5.21
26.5 92,130,720 8,141 0.0001 0.9999 87.45
27.5 59,229,814 21,453 0.0004 O f 9996 87.44
28.5 12,743,8 36 3.COGr3 1.00flQ 87.41
2j.5 12,464.24'1 hAi.I 1

3-2.5 12,4ij2.422 37.4;
31.5 1 2 , 473,::175 8x41
32.5 12,469,255 87.41
33.5 12,523,730 87.28
34 - 5 28,405,720 87.28
2s.s 28,378,344 87.23
36.5 2 8 , 3 4 8 , I21 87.20
! - r. :q, ! r i 5 , I E Z 67.14
I
iq*5
. . _
1 5 , G l l , 56.3 5r.14
..1 -
Ill-20
ENTERGY ARKAKSAS, INC.
ACCOUNT 314.00 TURBOGENERATOR UNITS

BEGIN OF BEGINNTNG OF DURING AGE RETMT SURV 3EGIN OF
39.5 16,054 , 961 42,075 0.0026 0.9974 87.14
40.5 15,992,010 0.0000 1.0000 86.91
41.5 24 , 062 , 641 0 * 0000 1.0000 86.91
42.5 27,175,357 0.0000 1 0000
f 86.91
43.5 27,176,020 0.0000 1.0000 86.91
44.5 31,630,556 0.0000 1* 0000 86.91
45.5 34,631,746 0.0000 1.OQOO 86.91
46.5 36,403,340 0.0000 1 * 0000 86.41
47.5 2 0 , 5 6 4 ,1 4 7 0.0000 1* 0000 86.91
48.5 2 0 , 564 , 7 9 2 0.0000 1* 0000 86.91
49.5 20,565,372 0.0000 1.0000 86.91
50.5 20,564,764 0 * 0000 1.0000 86.91
51.5 2 0 , 5 6 6 , 781 0.0000 1 * 0000 86.91
52.5 21,290,476 19,966 0.0009 0.9991 86.91
53.5 21,254,153 69,361 0.0033 0.9967 86.83
54.5 13,196,263 0.0000 1.0000 86.54
55.5 10,039,759 0.0000 1* 0000 86.54
56.5 10,038,751 0.0000 1.0000 86-54
57.5 5,5a0,517 0.0000 1.0000 86.54
58.5 2,562 I 677 0.0000 1 * 0000 86.54
59.5 740,708 0.0000 1.0000 06.54
60.5 740,611 0.0000 I. 0 0 0 0 86.54
61.5 739,966 0.0000 1.0000 96.54
62.5 739,386 0 * 0000 1.0000 86.54
63.5 739,386 O.OO0O 1.0000 56.54
64.5 737,328 0.0000 1.0000 a6.54
65.5 86-54
I
.-
I
ENTERGY ARKANSAS , INC .
ACCOUNT 315.00 ACCESSORY ELECTRIC EQUIPMENT

3RfGINAL LIFE TABLE
PUCEMENT BAND 1943 -2008 EXPERIENCE BAND 1996-2008
AGE AT EXPDSURES AT RETIREMENTS PCT SURV
0.0 14,417,976 0 0000

f 'L.0000 100.00
0.5 21,574,396 0 * 0000 r.0000 100.00
1.5 19,196,961 0 * 0000 I. 0 0 0 0 100.00
2.5 ia,775,687 0.0000 1.0000 100 * 0 0
3.5 18,475,421 0* 0000 1.0000 1 0 0 - 00
4.5 19,721,369 0.0000 1.0000 100.00
5.5 16,423,569 0.0000 1.0000 100.00
6.5 16,054,152 0.0000 1.0000 100.00
7.5 15,393,350 26,622 0.0017 @.9983 100.00
8.5 14,638,450 51,778 0.0035 0.9965 99.93
9.5 12,028,741 26 ,400 0 -0022 0.9978 99.48

10.5 11,934,465 89 0.0000 1.0000 99.26
11 . s 12,423,007 34,604 0.0028 0.9972 99.26
12.5 23,372,369 8,677 0.0004 0.9996 98 98
+
13.5 16,907,728 0.0000 1.0000 98 * 94

14.5 27,384,856 1,821 0.0001 0,9999 98.94
1s.s 43,997 , a 4 5 0 * 0000 1 - 0000 98.93
16.5 43,747,908 0 * 0000 1* 0000 98.93
17.5 42,205,442 18 ,2 5 5 0.0004 0.9996 98.93
18.5 42,147,831 0 * 0000 1 * 0000 98-09
19.5 42,091,858 46 0.0000 1 * 0000 98.89

20.5 42,012,120 0 * 0000 1 * 0000 98-89
21.5 41 ,490,483 2,462 0.0001 0.9999 98.89
22.5 41,455,697 7,200 0.0002 0.9998 90.88
23.5 41,164,447 136,402 0.0033 0.9967 98.86
24.5 39,041,920 114,050 0.0029 0.997: 98.53
25.5 29,992,950 26,651. 0.0009 0 * 9991 98.24
26.5 29,909,595 28,448 0.0010 0 * 9990 98.15
27.5 L9,34S, 1 7 5 9,336 0.0005 0 * 3395 98.05
2P.5 2 I 3458 , 6 3 9 0.OCOC; 1.~0i)O 3 ~ ~ a . 3
-9," .>
3L5,2c'l
L , c . @GO3 *' . t j 1 ] . , 3
35. j
:
!
33.5 2,260, i6.3 C . GGCC 1* C ' J i 1 3 32.92
31.5 2,263,331 0. Q O O O .
1 ,3c4:3 93-00
32.5 2,269,213 r3.oooc) 1 * oG(;c 5 d . OG
33.5 2,2GrJ, 462 0.0000 1 oooc)
rn 93.00
34.5 3,998,195 0.oouo 1 * OOO!, 98.00
35.5 3,915,333 129,146 0.0330 0.9670 98.00
36.5 3,781,045 Q. 0000 I 0000 34 -77
;7.5 ','i76,259 r! . c c o 5 1 .;, I) -4 p;
94.77
lg.5 i, 6 8 1 , rij? r3,OI)c)O 1 .bi:l-lfJ 34.77
111-23
ORIGINAL L I F E TABLE, CONT.
AGE AT EXPOSURES AT RZTIREMENTS PCT SURV
lNTERVAL AGE INTERVAL INTERVAL RATIO RATIO INTERVAL
39.5 1,896,783 8,307 0.0044 0.9956 94 * 7-7
40.5 1,930,914 0.0000 1 * 0000 94.35
41.5 4,045,339 0.0000 1.0000 94.35
42.5 4,577,166 8 0.0000 1.0000 94 * 3 s
43.5 4,584,796 0.0000 1.0000 94.35
44.5 5,355,267 0.0000 1 * 0000 94.35
45.5 6,176,454 0.0000 I. 0 0 0 0 94.35
46.5 6,432,799 11,666 0,0018 0.9982 94.35
47.5 4,637,406 0 * 0000 1 0000 94.18
48.5 4,839,980 0 * 0000 1.0000 94.18
49.5 4,839,943 13,008 0.0027 0.9973 94.18

50.5 4 , 827,382 0 * 0000 1.0000 93.93
51.5 4,828,655 0.0000 1.0000 93.93
52.5 5 ,023,407 20,103 0.0040 0.9960 93.93
53.5 4,946,973 0.0000 If 0000 93.55
54.5 2,842,172 0.0000 1.0000 93.55
55.5 2,274,386 0.0000 1.0000 93.55
56.5 2,262, 922 0 IO000 1.0000 93.55
57.5 1,491,856 2,506 0.0017 0.9983 9 3 * 55
58.5 680,292 0.0000 1.0000 93.39
59.5 418,211 0.0000 1.0000 93.39

60.5 418,009 0.0000 1.0000 93.39
61.5 215,435 0.0000 1.0000 93.39
62.5 225,435 0.0000 1.0000 93.39
63.5 214,619 0.0000 1.0000 93.39
64.5 212,929 0.0000 1.0000 93.39
65.5 93.39
I11-24
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
30 YO 50 60 1uo 1I O 120
Q G E IN YEARS
EETERGY ARKANSAS, mc.
ACCOUNT 316 0 0 a MISCELLANEOUS POWER PLANT EQUIPMENT
ORIGINAL LIFE TABLE
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 4,499,381 0.0000 1.0000 100.00
0.5 4,830,212 1,685 0.0003 0.9997 100.00
1.5 4,390,145 3,351 0.0007 0.9993 99.97
2.5 5,04 1 , 6 3 5 202 0.0000 1.0000 99.90
3.5 5,017,077 0.0000 1.0000 99-90
4.5 5,093,168 835 0.0002 0.9998 99 * 90
5.5 5,110,542
4 ,9 7 5 , 0 0 6
121,010 0.0237
0.0000
0.9763
1.0000
-
99 8 8
97.51
6.5
7.5 5,022,449 13,945 0.0028 0.9972 97.51
a s 4,507,696 29,071 0.0064 0.9936 97.24
9.5 3,957,995 22,853 0.0058 0.9942 96.62

10.5 4,352,053 46,729 0.0107 0.9893 96.06
11.5 4,053,778 82,865 0.0171 0.9829 95.03
12,5 7,184,900 68,505 0.0095 0.9905 93.40
13.5 7,105,437 24,562 0.0035 0.9965 92.51
14.5 7 , 6 6 3 , 584 21,372 0.0028 0.9972 92.19
15.5 10,541 , 624 36,140 0.0034 0.9966 91.93
16.5 10,550,344 7,889 0.0007 0.9993 91.62
17.5 10,441,700 23,015 0.0022 0.9978 91.56
18.5 10,081,188 1,369 0.0001 0.9999 91.36
19.5 9,015,857 18,545 0.0019 0.9981 91.35

20.5 9,500,250 20,545 0.0022 0.9970 91. l a
21.5 9,228,314 70,639 0.0077 0.9923 90 98
22.5 8 , 990,132 10,734 0.0012 0.9988 90.28
23.5 9,502,388 23,146 0.0027 0.9973 90.17
24.5 7,006,592 6,286 0.0008 0.9992 89.93
25.5 5,133,363 0 * 0000 1.0000 89.86
26.5 4,755 ,4 6 9 0 - 0000 1 - 0000 89.86
27.5 3,799,833 0.0000 1.0000 89.86
28.5 ao2,979 0.0000 .
1 r,OGO a 3 , ti5
2j.5
;r:. 5
31.5
2.2.5
33.5
34.5
35.5
36.5
,:- 7 . '!
'j R .' I
ACCOUNT 316 . O O MISCELLANEOUS POWER PLANT EQUIPMENT
ORIGINAL L I F E TABLE, CCNT.
P'UACEMENT BAND 1943-2008 EXPERIENCE BAND 1996-2008
39.5 412,491 0.0000 1* 0000 89. a6
40.5 477,820 0.0000 1.0000 89.86
\ 41.5 830,157 0 * 0000 1.0000 89.86
42.5 844,443 0 * 0000 3. * 0000 89.86
43.5 859,557 0.0000 1 0000 89.86
44.5 I, 047,847 0.0000 I. 0000 89.86
45.5 1 ,2 6 6 , 5 0 7 0.0000 1.0000 a9..86
46.5 1,216,446 0 * 0000 1 * 0000 89-86
47.5 9 8 5 ,2 4 6 0.0000 1.0000 89. a6
48.5 I, 031,962 0.0000 1.0000 89.86
49.5 1,031,988 0.0000 1.0000 09.86

50.5 1,030,972 0 * 0000 1.0000 89.86
51.5 1,028,665 0 * 0000 1 oouo 89.86
52.5 1,095,520 3,060 0.0028 0.9972 89.86
53.5 1,021,561 0.0000 5.0000 89.61
s4.5 656,241 0.0000 1.0000 89.61
55.5 631,653 0.0000 1.0000 89.61
56.5 610,183 0 * 0000 1. oaoo 89.61
57.5 415,227 2,474 0.0060 0.9940 89.61
58.5 160,445 0.0000 1.0000 89.07
\
59.5 137,777 0.0000 I. 0000 89.07
60.5 135,440 0 * 0000 1.0000 89.07
61.5 83,905 0.0000 1.0000 89.07
62.5 81,800 0.OOOQ 1.0000 89.07
63.5 81,105 0.0000 I * OD00 89.07
64.5 73,460 0. ouoo 1.0000 89-07
65.5 89.C7
111-27
I
...
If'
I I
+-
__.-
I
I
-
T".-
L
0
UY
Q
!
!
I
e
I
i
f
I i
i I
ACCOUNT 3 2 0 . 2 0 LAND RIGHTS
0.0 1,598,140 0.0000 1.0000 100.00

0.5 1 , 5 9 8 140
I 0.0000 1.0000 100.00
1.5 I, 5 9 8 , 1 4 0 0.0000 1.0000 100.00
2.5 1,598,140 0.0000 1.0000 100.00 I
3.5 1,598,140 0.0000 1.0000 100.00
4.5 1,598,140 0.0000 1.0000 100.00
5.5 I,598,140 0.0000 1.0000 100.00
6.5 1 , 598,140 0.0000 1.0000 100.00
7.5 I , 598,140 0.OOOQ 1.OOOQ 100 * 00
8.5 1,598,140 0.0000 1.0000 100.00 I
9.5 100.00
ltl-29
7--
I------. 1
I
I
I
--t-
- .... -.
-.._ '-
1"
111-30
ACCOUNT 321.00 STRUCTURES AND IMPROVEMENTS
ORIGINAL LIFE TABLE
PLACEMENT B W D 1925-2008 EXPERIENCE BAND 1996-2008
0.0 87,477,503 0.0000 1.0000 100 - 0 0
0.5 91,760,704 0.0000 1.0000 100.00
1.5 94 , 616,549 300,000 0.0032 0.9968 100.00
2.5 92,694 , 4 4 7 -
0 0000 1 0000 99.68
3.5 94,435,390 5,879 0.0001 0* 9999 99.68
4.5 97,2mI3s9 0 * 0000 1.0000 99.67
5.5 106,933,098 21 ,204 0.0002 0.9998 99.67
6.5 106,919,748 1,156,823 0.0108 0.9892 99.65
7.5 104,495,247 134,554 0.0013 0.9987 90.57
8.5 89,513,819 13,931 0.0002 0.9998 98.44
9.5 89,453,993 55,903 0.0006 0.9994 98.42

10.5 92,485,702 36 , 827 0.0004 0.9996 98.36
11.5 102,787,644 249,501 0.0024 0.9976 98.32
12.5 99,ao8,031 163,487 0.0016 0.9984 98.08
13.5 90,425,821 28,894 0,0003 0.9997 97 92
+
14.5 78,841,584 15,699 0.0002 0.9998 97.89

15.5 224,223,433 874,379 0.0039 0.9961 97.87
16.5 221,724,783 6,868 0.0000 1 * 0000 97.49
17.5 212 , 071,3 12 59,625 0.0003 0.9997 97.49
18.5 203,780,905 8,503 0.0000 1.0000 97.46
19.5 204,812,537 98,104 0.0005 0.9995 97.46

20.5 204,845,943 828,257 0.0040 0.9960 97.41
21.5 243,947,001 12,036 0.0000 1.0000 97.02
22.5 243 ,670,214 14,103 0.0001 0,9999 97.02
23.5 234,003,505 220,752 0.0009 0 * 9991 97.01
24.5 221,808,846 106,011 0.0005 0.9995 96.92
2 5 . '5 220, a 4 8 , 3 4 5 1,295,023 0.0059 0.9941 96.87
26.5 217,011,063 234 ,434 0.0011 o.wa9 96.30
27.5 214,470,731 597,092 O.OO28 0.9972 96.19
29.5 6:'3,92I,P44 25,641 O.nO04 3.9996 95.92
111-31
ACCOUNT 3 2 1 . 0 0 STRUCTURES ANI3 IMPROVEMENTS
PLACEMENT BANI3 1 9 2 5 - 2 0 0 8 EXPERIENCE BAND 1996-2008
BEGIN OF B E G I h i I N G OF DURING AGE RETMT SURV BEGIN OF
39.5
40.5
41.5
42.5
43.5
44.5
45.5
46.5
47.5
48.5
49 :5
50.5
51.5
52.5
53.5
54.5
55.5
56.5
57.5
58.5
59.5
60.5
61.5
62.5
63.5
64.5
65.5
66.5
67.5
FS.5
111-32
I
/’ I
111-33
ENTERGY A R M S A S , INC.
ACCOUNT 3 2 2 . 0 0 REACTOR PLANT EQUIPMENT
ORIGINAL L I F E TAELE
PLACEMENT BAND 1974-2008 EXPERTENCE BAND 1996-2008
AGE AT EXPOSURES A T RETIREMENTS PCT SURV

INTERVAL AGE INTERVAL INTERVAL EWTIO RATIO INTERVAL
0.0 560,870,248 41,809 0.0001 0.9999 100.00

0.5 516,947,325 0.0000 1.0000 93.99
1.5 502,230,470 10,000 0 * 0000 r.0000 99.99
2.5 478,681,332 1,702,666 0.0036 0.9964 99.99
3.5 308,445,544 3,551,812 0.0115 0.9885 99.63
4.5 302,004,428 2,016 , 516 0.0067 0.9933 98-48
S.5 318,391,063 857,271 0.0027 0.9973 97.82
6.5 328,372,355 7,882,437 0.0240 0.9760 97.56
7.5 340,718,578 1,245,141 0.0037 -
0 9963 95.22
8.5 207,359,510 1,625,378 0.0078 0.9922 94.87
9.5 203,213,788 0.0000 1.0000 94.13

10.5 215,591,647 1,821,273 0.0084 0.9916 94.13
11.5 237,411,507 2,881,241 0.0121 0.9879 93.34
12.5 237,720,592 4,048,541 0.0170 0.9830 92.21
13.5 226,270,895 3,360,208 0.0149 0.9851 90.64
14.5 219,547,699 7,900,544 0.0360 0.9640 89.29
15.5 457,402,080 2,848,663 0.0062 0.9938 86.08
16.5 434,740,734 2,061,728 0.0047 0.9953 85.55
17.5 425,306,337 - 1, 7 6 8 , 6 9 0 0.0042 0.9958 85-15
18.5 414,311,885 2,736,797 0.0066 0 9934
+ 84.79
39.5 392,535,503 2 7 , 3 7 3 ,498 0.0697 0.9303 84.23

20.5 344,746,217 3,376,637 0-0098 -
0 9902 78-36
21.5 404,212,629 411,554 0.0010 0.9990 77.59
22.5 399,311 , 930 547,390 0.0014 0,9986 77.51
23.5 384,784,994 346,309 0.0009 a. 9991 77.40
24.5 358,089,667 520,869 0.0015 0.9985 77.33
25.5 349,842,453 3,858,206 0.0110 0.9690 77.21
26.5 337,600,032 988,223 0.0029 0.9971 76.36
27.5 326,673,934 7,874,942 0.0241 0.9759 76.14
28.5 97,052,037 66,444 O.OOQ7 O f 5993 '74 * 3 1
24.L.
?').5
;,35, 1"4
,.-45,
34,5??,1~5
- . <>-'L
-4
13 * 7 7 9 5 -: 4 . . 2i3c;
? .!
;I . 5 72,531,056 0.3938 57-78

12.4 72,514,270 0.3339 s7.77
3.3 * 5 71,518,892 0.3894 57.76
34.5 57.15
111-34
I
r,-:
:.
j:
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
INTERVAL AGE INTERVAL INTERVAL RATIO MTIO TNTERVAL
0.0 105,a58,1a4 0.0000 1.0000 100.00
0.5 9 5 8 733,540 0.0000 1.0000 100.00
1.5 97,149,636 0.0000 I. 0000 100 * 00
2.5 38, s s o , x a 0.0000 I * 0000 100.00
3.5 94,432,654 0.0000 -
1 0000 100.00
4.5 96,277,426 1 0 2 , 953 0.0021 0.9989 100.00
5.5 9at95a,i41 0.0000 -
1 0000 99.89
6.5 105 ,017 ,179 40,000 0.0004 0.9996 99.89
7.5 128,787,644 0.0000 I * 0000 99.85
8.5 106,337,067 0.0000 1.0000 99.85
9.5 6 8 1 681 527 0.0000 1 - 0000 99.85

10.5 55,270,490 13,658 0.0002 0 9998
+ 99.85
11.5 56,074,382 4,688 0.0001 0.9999 99.83
12.5 60,046,021 0 * 0000 1.0000 99.82
13.5 52,894,981. 0.0000 1 * 0000 99.82
14.5 6 1 ,495,147 0.0000 I. 0000 99.82
15.5 152,170,327 131,332 0.0009 0.9991 99.82
16.5 151,300,446 182,188 0.0012 0.9988 99.73
17.5 153,470,649 550,120 0.0036 0.9964 99 61
18.5 152,669,078 5,830,026 0.0382 0.9618 99.25
19.5 139,358,331 9,837,367 0.0706 0.9294 95.46

20.5 106,548,491 50,510 0 -0005 0.9995 88.72
21.5 138,477,200 31,229 0.0002 0.9998 88.68
22.5 138,037,650 260,038 0.0019 0.9981 98.66
23.5 135,899,I 1 3 768,698 0.0057 0.9943 88.49
24.5 132,258,348 1,092,417 0.0083 0.9917 87.99
25.5 127,437,083 35,953 0.0003 O f 9997 87.26
26.5 127,174,425 0 - 0000 1.0000 87.23
27.5 116,542,818 66,854 0.0006 0.9994 87.23
2P.5 39,855,333 r,. 9009 I .0 3 0 0 a7*15
111-36
ACCOUNT 323.00 TURBOGENERATOR L'NTTS
ORIGINAL L I F E TABLE I CONT.

PWIICEMENT BAND 1351-2008 EXPERIENCE BAND 1996-2008
AGE A T 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 IhiEilVAL KATEO RATIO INTERVAL
39.5
40.5
41.5
42.5
43.5
44.5 2,620 0.0000
45.5 2,620 0.0000
46.5 2,620 0.0000
47.5 2,620 0.0000
48.5 2,620 0.0000
49.5 2,620 0. vooo

50.5 2,620 0.0000
51.5 2 ,6 2 0 0.0000
52.5 2,620 -
0 0000
53.5 2 620
I 0 * 0000
54.5 2,620 0.0000
55.5 2,620 0.0000
56.5 2,620 0.0000
57.5
111-37
I
I 11-38
ENTERGY AFKANSAS , INC .
PLACEMENT BAND 1974-2008 EXPERIENCE BAVD 1996-2008
BEGIN d F BEGINNING OF DURING AGE: RETMT SURV BEGIN OF
INTERVAL AGE INTERVAL INTERVAL RATIO RATIO lNTERVAL
0.0 3 1 ,281,465 0 * 0000 1 * 0000 -
100 0 0
0.5 43,008,074 0.0000 1.0000 100.00
1.5 51,258,662 60,000 0.0012 0.9988 100.00
2.5 61,60I,OOO 23,839 0.0004 0.9996 99.88
3.5 52,156,207 *102,647 0.0017 0.9983 99.84
4.5 68,535,806 0 * 0000 I * 0000 99.67
5.5 72,387,405 0.0000 1 * 0000 99.67
6.5 8 0 ,0 3 5 , 7 0 8 174,882 0.0022 0.9978 99.67
7.5 81,195,634 0 * 0000 1.0000 99.45
8.5 79,205,772 0.0000 1.0000 99.45
9.5 78,548,062 0.0000 1 * 0000 99.45

10.5 83,916,139 0 * 0000 1.0000 99.45
11.5 207,976,689 0.0000 1.0000 99.45
12.5 105,503,891 48,733 0.OOO5 0 - 9995 99.45
13.5 95,508,252 14 ,353 0.0002 0.9998 99.40
14.5 94 ,526,732 282,729 0.0030 0.9970 99.38
15.5 151,364,587 119,541 0.0008 0.9992 99.08
16.5 149,918,446 2,484 0.0000 1 * 0000 99.00
17.5 142,562,245 573 0.0000 1 * 0000 99.00
18.5 136,977,398 522,284 0.0038 0.9962 99.00
19.5 128,957,510 207,832 0.0016 0.9984 98.62

20.5 126,516,281 19,613 0.0002 0.9998 98.46
21.5 239,945,513 214,690 0.0015 0.9985 98.44
22.5 136 , 7 3 6 , 2 9 7 103,120 0.0008 0.9992 98.29
23.5 129,264,533 408,876 0.0032 0.9968 98.21
21.5 193,388,568 16,e 7 8 0.0002 0.3998 97.90
25.5 101,171,577 6,239 0.0001 0.9999 97.88
26.S 98,685,776 47,559 0.0005 0.9995 97.07
27 * r 91,053,595 2,408 0.0000 1 * 0000 97.82
2 . 5 1 4 ,c71,;5$1 5,040 C.9OI12 c . 3499 97-42
I 11-39

Method

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PART II.

THE ESTIMATION OF DEPRECIATION

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

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

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

Averaqe Service Life

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

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

'Winfrey, Robley. Statistical AnaIvses of Industrial Proaertv Retirements. Iowa

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

Retirement Rate Method of Analvsis

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

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

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

'Marston, Anson, Robley Winfrey and Jean C. Hempstead. Enaineerinq Vafuation

4Winfrey,Robley, Supra Note 1..

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

a g e d 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

which encompasses only one-half year.

Experience Band 1999-2008

Year Durinq Year Total During Age

Experience Band 2999-2008 Placement Band 1994 -2008

Acquisitions, Transfers and Sales, Thousands of Dollars

of each age interval.

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

considered to b e removed from t h e plant exposed to retirement at the besinninq of the

ExPosures, Thousands of Dollars

a Additions during the year

calculated in the following manner:

Exposures at age 0 = amount of addition = $750,000

Experience Band 1999-2008 Placement Band 1994-2008

(Exposure and Retirement Amounts are in Thousands of Dollars)

Column 2 from Table 3. Column 12, Plant Exposed to Retirement.

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

Percent suwiving at age 4% - 88.15

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

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

Service Life Considerations

other electric utility companies.

Account No. Account Description

on t h e retirement rate method.

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

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

are used primarily as peaking units.

power production unit, follows:

in other electric companies.

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

markets for retired equipment and materials.

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

Other Production Plant

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

five-year period averaged 19 percent.

decommissioning costs associated with each generating station. The decommissioning

computed by the following equation:

(100% - Net Salvage, Percent)

for straight line depreciation accounting.

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

Average Remaining Life Expectancy (, Net Salvage, perceno.

Sinqle Unit of Propem

$‘uooo = $100 per year.

of the vintage and the maximum age,