Entergy Arkansas, Inc Cost Benefit Analysis Addendum Study
Charles River Associates
Draft, April 28, 2010
Project Scope
CRA will perform an supplementary cost-benefit analysis focusing on Entergy Arkansas,
Inc. (“EAI CBA”) using underlying input assumptions consistent with those being used
in the FERC-sponsored SPP-Entergy Cost-Benefit Analysis (“SPP-Entergy CBA”) in
which Entergy Arkansas, Inc. (“EAI”) is on a stand-alone basis from the other Entergy
Operating Companies. A stand-alone case in which EAI is not in the SPP RTO will be
compared to a case in which EAI (but not the other Entergy Operating Companies) joins
the SPP RTO.
The EIA CBA study will be structured as follows:
1. Study time frame
A. 2013-2022 (same as SPP-Entergy CBA)
B. GE MAPS model years to run
a. 2013, 2016, 2019, 2022 (same as SPP-Entergy CBA). Results for
intervening years will be interpolated.
2. EAI CBA Base Case:
A. EAI Stand-alone and not a member of the SPP RTO
a. EAI hurdle rates with the rest of Entergy [possibly including
transmission wheeling rates]
b. EAI hurdle rates with SPP by Zone
c. Other Entergy Operating Companies and Cleco, LEPA, LAFA and
LAGN are not members of the SPP RTO.
d. All else the same as the SPP-Entergy CBA Base Case
3. EIA CBA Change Case:
A. EAI is a member of the SPP RTO
a. Other Entergy Operating Companies and Cleco, LEPA, LAFA and
LAGN are not members of the SPP RTO.
1. EAI hurdles with the rest of Entergy based on SPP hurdles with
Entergy
b. All else the same as the SPP-Entergy CBA Change Case
4. Sensitivity Cases: None (thus, 8 total EAI CBA MAPS runs, 4 MAPS years x 2 cases)
5. Transmission: Same 2013 and 2022 power flow as used in the SPP-Entergy CBA.
6. Results by Case:
A. EAI Trade Benefits from MAPS runs derived using CRA split-savings
methodology (same methodology as SPP-Entergy CBA)
B. Entergy to then calculate System Agreement impacts for each Entergy operating
company for each MAPS run, and provide the results to CRA for summary in the
CRA report
C. Costs:
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a. Base Case:
1. EAI Costs as part of ITC
b. Change Case:
1. Additional SPP costs to have EAI as a member
2. EAI charges payable to SPP as part of SPP RTO
3. EAI transmission cost allocations as part of SPP RTO
4. EAI internal staffing/equipment costs to be in SPP
5. EAI share of SPP RTO through and out wheeling revenue
6. Historical through and out wheeling revenue for EAI
a. Estimated using allocated share of Entergy through and
out wheeling revenue
7. Qualitative Considerations
A. Issues to be assessed identified per discussions with stakeholders
B. Net Impact to SPP Members and Rate Payers
C. Estimate of transmission upgrade, Information Technology, and other costs on
the Entergy System to meet SPP membership requirements.
D. Estimate of transmission upgrade costs, IT System upgrades, and other costs on
the SPP System to support the transition of Entergy into SPP.
8. Draft and Final CRA Report
A. 20 to 40 page report with detailed appendices describing the study and the
results.
Project Schedule
The EAI CBA schedule will be contingent on certain milestones being reached in the SPPEntergy CBA (e.g., completion of a Base Case 2013 GE MAPS run). The project schedule will
be updated as needed based on completion of those milestones. The project schedule is outlined
in the table below:
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Completion
Date
May 18
May 25
June 8
June 22
June 25
July 2
July 12
July 15
July 15
July 21
July 26
July 28
August 3
August 3
August 24
August 25
Sept 17
October 2
Action
Stakeholder guidance on EAI hurdle rates completed
Status update sent to CRA
2013 GE MAPS Base Case run completed
2013 GE MAPS Change Case run completed
Status update sent to SPP, conference call with study stakeholders
Post-processing of 2013 cases
Analysis of historical transmission revenue completed
SPP supplies projected 2013-2022:
- EAI ICT costs
- EIA charges as SPP member
- SPP incremental costs to include EAI as RTO member
- EAI SPP transmission cost allocation
- EAI share of SPP T&O transmission revenue
Entergy supplies EAI capital/staffing costs as member of SPP RTO
2016, 2019, 2022 GE MAPS Base and Change Cases completed
Status update sent to SPP; conference call with study stakeholders
Post-processing of 2016-2022 GE MAPS cases
GE MAPS data supplied to Entergy for System Agreement analysis
Qualitative issue identification by stakeholders
Entergy analysis of Entergy System Agreement using GE MAPS data completed
Status update sent to SPP, conference call with study stakeholders
Draft report
Final report
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