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Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | 3 Months Ended
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Mar. 31, 2016
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2020. Entergy Corporation also has the ability to issue letters of credit against 50% of the total borrowing capacity of the credit facility. The commitment fee is currently 0.275% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. The weighted average interest rate for the three months ended March 31, 2016 was 2.35% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of March 31, 2016.
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $616 |  | $7 |  | $2,877
Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5 billion. At March 31, 2016, Entergy Corporation had $578 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2016 was 1.14%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of March 31, 2016 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of March 31, 2016 | Letters of Credit Outstanding as of March 31, 2016
Entergy Arkansas |  | April 2016 |  | $20 million (b) |  | 1.93% |  | $— | $—
Entergy Arkansas |  | August 2020 |  | $150 million (c) |  | 1.68% |  | $— | $—
Entergy Louisiana |  | August 2020 |  | $350 million (d) |  | 1.68% |  | $— | $3.1 million
Entergy Mississippi |  | May 2016 |  | $37.5 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $35 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $20 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $10 million (e) |  | 1.93% |  | $— | $—
Entergy New Orleans |  | November 2018 |  | $25 million |  | 2.18% |  | $— | $—
Entergy Texas |  | August 2020 |  | $150 million (f) |  | 1.93% |  | $— | $1.3 million
(a) | The interest rate is the rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility.
(b) | Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. The credit facility expired in April 2016. Entergy Arkansas plans to renew the credit facility.
(c) | The credit facility allows Entergy Arkansas to issue letters of credit against 50% of the borrowing capacity of the facility.
(d) | The credit facility allows Entergy Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility.
(e) | Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. Entergy Mississippi expects to renew its credit facilities prior to expiration.
(f) | The credit facility allows Entergy Texas to issue letters of credit against 50% of the borrowing capacity of the facility.
The commitment fees on the credit facilities range from 0.125% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations related to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of March 31, 2016:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of March 31, 2016 (a)
Entergy Arkansas |  | $25 million |  | 0.70% |  | $1.0 million
Entergy Louisiana |  | $125 million |  | 0.70% |  | $7.0 million
Entergy Mississippi |  | $40 million |  | 0.70% |  | $4.4 million
Entergy New Orleans |  | $15 million |  | 0.75% |  | $6.2 million
Entergy Texas |  | $50 million |  | 0.70% |  | $5.6 million
(a) | The amount for Entergy Mississippi includes $0.4 million related to FTR exposure. See Note 8 to the financial statements herein for discussion of FTRs.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2017. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool. The money pool is an inter-company borrowing arrangement designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from the money pool and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of March 31, 2016 (aggregating both money pool and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $175 |  | $—
Entergy New Orleans | $100 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Entergy Nuclear Vermont Yankee Credit Facilities Entergy Nuclear Vermont Yankee entered into a credit facility guaranteed by Entergy Corporation which expires in January 2018. In the first quarter 2016, Entergy Nuclear Vermont Yankee increased the borrowing capacity of its credit facility to $100 million. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.25% of the undrawn commitment amount. As of March 31, 2016, $61 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the three months ended March 31, 2016 was 2.20% on the drawn portion of the facility. Entergy Nuclear Vermont Yankee also entered into an uncommitted credit facility guaranteed by Entergy Corporation with a borrowing capacity of $85 million which expires in January 2018. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides an additional funding source to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. As of March 31, 2016, there were no cash borrowings outstanding under the credit facility. The rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility was 2.18% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 18 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of March 31, 2016:
Company |  | Expiration Date (a) |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (b) |  | Amount Outstanding as of March 31, 2016
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2016 |  | $85 |  | n/a |  | $—
Entergy Louisiana River Bend VIE |  | June 2016 |  | $100 |  | n/a |  | $—
Entergy Louisiana Waterford VIE |  | June 2016 |  | $90 |  | 1.86% |  | $77.5 (c)
System Energy VIE |  | June 2016 |  | $125 |  | 2.01% |  | $111 (c)
(a) | Prior to expiration, the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy each plan to renew its credit facility.
(b) | Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
(c) | Commercial paper, classified as a current liability.
The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Louisiana VIEs and 0.125% of the undrawn commitment amount for the Entergy Arkansas and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of March 31, 2016 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.23% Series J due July 2016 |  | $55 million
Entergy Arkansas VIE |  | 2.62% Series K due December 2017 |  | $60 million
Entergy Arkansas VIE |  | 3.65% Series L due July 2021 |  | $90 million
Entergy Louisiana River Bend VIE |  | 3.25% Series Q due July 2017 |  | $75 million
Entergy Louisiana River Bend VIE |  | 3.38% Series R due August 2020 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.25% Series G due July 2017 |  | $25 million
Entergy Louisiana Waterford VIE |  | 3.92% Series H due February 2021 |  | $40 million
System Energy VIE |  | 4.02% Series H due February 2017 |  | $50 million
System Energy VIE |  | 3.78% Series I due October 2018 |  | $85 million
In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Redemptions (Entergy Arkansas) In January 2016, Entergy Arkansas issued $325 million of 3.5% Series first mortgage bonds due April 2026. Entergy Arkansas used the proceeds to pay, prior to maturity, its $175 million of 5.66% Series first mortgage bonds due February 2025, and used the remainder of the proceeds, together with other funds, towards the purchase of Power Block 2 at Union Power Station and for general corporate purposes. See Note 13 to the financial statements herein for discussion of the Union purchase. (Entergy Louisiana) In March 2016, Entergy Louisiana issued $200 million of 4.95% Series first mortgage bonds due January 2045. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, to repay borrowings under its $350 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana issued $425 million of 3.25% Series collateral trust mortgage bonds due April 2028. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana arranged for the issuance by the Louisiana Public Facilities Authority of (i) $83.680 million of 3.375% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016A due September 2028, and (ii) $115 million of 3.50% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016B due June 2030, each of which series is evidenced by a separate series of non-interest bearing collateral trust mortgage bonds of Entergy Louisiana. The proceeds from these issuances were held in trust as of March 31, 2016 and were applied in April 2016 to the refunding of $198.68 million of outstanding series of pollution control revenue bonds previously issued on behalf of Entergy Louisiana. In March 2016, Entergy Louisiana issued $51.972 million of Waterford Series collateral trust mortgage notes due July 2017 as part of the purchase of the undivided interests in Waterford 3. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction. In March 2016 the Entergy Louisiana nuclear fuel company variable interest entity redeemed, at maturity, its $20 million of 3.30% Series F notes. (Entergy New Orleans) In March 2016, Entergy New Orleans issued $110 million of 5.50% Series first mortgage bonds due April 2066. Entergy New Orleans used the proceeds to repay borrowings from the money pool, to repay borrowings under its $25 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Block 1 of Union Power Station. See Note 13 to the financial statements for discussion of the Union purchase. (Entergy Texas) In March 2016, Entergy Texas issued $125 million of 2.55% Series first mortgage bonds due June 2021. Entergy Texas used the proceeds for general corporate purposes. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of March 31, 2016 are as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $14,296,872 |  |  |  | $14,811,845 |
Entergy Arkansas |  | $2,777,649 |  |  |  | $2,726,079 |
Entergy Louisiana |  | $5,620,234 |  |  |  | $5,967,996 |
Entergy Mississippi |  | $1,045,430 |  |  |  | $1,100,469 |
Entergy New Orleans |  | $449,892 |  |  |  | $443,145 |
Entergy Texas |  | $1,552,741 |  |  |  | $1,702,601 |
System Energy |  | $572,742 |  |  |  | $550,080 |
(a) | The values exclude lease obligations of $56 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2015 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $13,325,930 |  |  |  | $13,578,511 |
Entergy Arkansas |  | $2,629,839 |  |  |  | $2,498,108 |
Entergy Louisiana |  | $4,836,162 |  |  |  | $5,018,786 |
Entergy Mississippi |  | $1,045,085 |  |  |  | $1,087,326 |
Entergy New Orleans |  | $342,880 |  |  |  | $351,040 |
Entergy Texas |  | $1,451,967 |  |  |  | $1,590,616 |
System Energy |  | $572,667 |  |  |  | $552,762 |
(a) | The values exclude lease obligations of $109 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
Entergy Arkansas [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2020. Entergy Corporation also has the ability to issue letters of credit against 50% of the total borrowing capacity of the credit facility. The commitment fee is currently 0.275% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. The weighted average interest rate for the three months ended March 31, 2016 was 2.35% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of March 31, 2016.
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $616 |  | $7 |  | $2,877
Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5 billion. At March 31, 2016, Entergy Corporation had $578 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2016 was 1.14%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of March 31, 2016 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of March 31, 2016 | Letters of Credit Outstanding as of March 31, 2016
Entergy Arkansas |  | April 2016 |  | $20 million (b) |  | 1.93% |  | $— | $—
Entergy Arkansas |  | August 2020 |  | $150 million (c) |  | 1.68% |  | $— | $—
Entergy Louisiana |  | August 2020 |  | $350 million (d) |  | 1.68% |  | $— | $3.1 million
Entergy Mississippi |  | May 2016 |  | $37.5 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $35 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $20 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $10 million (e) |  | 1.93% |  | $— | $—
Entergy New Orleans |  | November 2018 |  | $25 million |  | 2.18% |  | $— | $—
Entergy Texas |  | August 2020 |  | $150 million (f) |  | 1.93% |  | $— | $1.3 million
(a) | The interest rate is the rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility.
(b) | Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. The credit facility expired in April 2016. Entergy Arkansas plans to renew the credit facility.
(c) | The credit facility allows Entergy Arkansas to issue letters of credit against 50% of the borrowing capacity of the facility.
(d) | The credit facility allows Entergy Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility.
(e) | Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. Entergy Mississippi expects to renew its credit facilities prior to expiration.
(f) | The credit facility allows Entergy Texas to issue letters of credit against 50% of the borrowing capacity of the facility.
The commitment fees on the credit facilities range from 0.125% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations related to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of March 31, 2016:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of March 31, 2016 (a)
Entergy Arkansas |  | $25 million |  | 0.70% |  | $1.0 million
Entergy Louisiana |  | $125 million |  | 0.70% |  | $7.0 million
Entergy Mississippi |  | $40 million |  | 0.70% |  | $4.4 million
Entergy New Orleans |  | $15 million |  | 0.75% |  | $6.2 million
Entergy Texas |  | $50 million |  | 0.70% |  | $5.6 million
(a) | The amount for Entergy Mississippi includes $0.4 million related to FTR exposure. See Note 8 to the financial statements herein for discussion of FTRs.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2017. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool. The money pool is an inter-company borrowing arrangement designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from the money pool and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of March 31, 2016 (aggregating both money pool and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $175 |  | $—
Entergy New Orleans | $100 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Entergy Nuclear Vermont Yankee Credit Facilities Entergy Nuclear Vermont Yankee entered into a credit facility guaranteed by Entergy Corporation which expires in January 2018. In the first quarter 2016, Entergy Nuclear Vermont Yankee increased the borrowing capacity of its credit facility to $100 million. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.25% of the undrawn commitment amount. As of March 31, 2016, $61 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the three months ended March 31, 2016 was 2.20% on the drawn portion of the facility. Entergy Nuclear Vermont Yankee also entered into an uncommitted credit facility guaranteed by Entergy Corporation with a borrowing capacity of $85 million which expires in January 2018. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides an additional funding source to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. As of March 31, 2016, there were no cash borrowings outstanding under the credit facility. The rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility was 2.18% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 18 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of March 31, 2016:
Company |  | Expiration Date (a) |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (b) |  | Amount Outstanding as of March 31, 2016
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2016 |  | $85 |  | n/a |  | $—
Entergy Louisiana River Bend VIE |  | June 2016 |  | $100 |  | n/a |  | $—
Entergy Louisiana Waterford VIE |  | June 2016 |  | $90 |  | 1.86% |  | $77.5 (c)
System Energy VIE |  | June 2016 |  | $125 |  | 2.01% |  | $111 (c)
(a) | Prior to expiration, the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy each plan to renew its credit facility.
(b) | Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
(c) | Commercial paper, classified as a current liability.
The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Louisiana VIEs and 0.125% of the undrawn commitment amount for the Entergy Arkansas and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of March 31, 2016 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.23% Series J due July 2016 |  | $55 million
Entergy Arkansas VIE |  | 2.62% Series K due December 2017 |  | $60 million
Entergy Arkansas VIE |  | 3.65% Series L due July 2021 |  | $90 million
Entergy Louisiana River Bend VIE |  | 3.25% Series Q due July 2017 |  | $75 million
Entergy Louisiana River Bend VIE |  | 3.38% Series R due August 2020 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.25% Series G due July 2017 |  | $25 million
Entergy Louisiana Waterford VIE |  | 3.92% Series H due February 2021 |  | $40 million
System Energy VIE |  | 4.02% Series H due February 2017 |  | $50 million
System Energy VIE |  | 3.78% Series I due October 2018 |  | $85 million
In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Redemptions (Entergy Arkansas) In January 2016, Entergy Arkansas issued $325 million of 3.5% Series first mortgage bonds due April 2026. Entergy Arkansas used the proceeds to pay, prior to maturity, its $175 million of 5.66% Series first mortgage bonds due February 2025, and used the remainder of the proceeds, together with other funds, towards the purchase of Power Block 2 at Union Power Station and for general corporate purposes. See Note 13 to the financial statements herein for discussion of the Union purchase. (Entergy Louisiana) In March 2016, Entergy Louisiana issued $200 million of 4.95% Series first mortgage bonds due January 2045. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, to repay borrowings under its $350 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana issued $425 million of 3.25% Series collateral trust mortgage bonds due April 2028. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana arranged for the issuance by the Louisiana Public Facilities Authority of (i) $83.680 million of 3.375% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016A due September 2028, and (ii) $115 million of 3.50% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016B due June 2030, each of which series is evidenced by a separate series of non-interest bearing collateral trust mortgage bonds of Entergy Louisiana. The proceeds from these issuances were held in trust as of March 31, 2016 and were applied in April 2016 to the refunding of $198.68 million of outstanding series of pollution control revenue bonds previously issued on behalf of Entergy Louisiana. In March 2016, Entergy Louisiana issued $51.972 million of Waterford Series collateral trust mortgage notes due July 2017 as part of the purchase of the undivided interests in Waterford 3. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction. In March 2016 the Entergy Louisiana nuclear fuel company variable interest entity redeemed, at maturity, its $20 million of 3.30% Series F notes. (Entergy New Orleans) In March 2016, Entergy New Orleans issued $110 million of 5.50% Series first mortgage bonds due April 2066. Entergy New Orleans used the proceeds to repay borrowings from the money pool, to repay borrowings under its $25 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Block 1 of Union Power Station. See Note 13 to the financial statements for discussion of the Union purchase. (Entergy Texas) In March 2016, Entergy Texas issued $125 million of 2.55% Series first mortgage bonds due June 2021. Entergy Texas used the proceeds for general corporate purposes. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of March 31, 2016 are as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $14,296,872 |  |  |  | $14,811,845 |
Entergy Arkansas |  | $2,777,649 |  |  |  | $2,726,079 |
Entergy Louisiana |  | $5,620,234 |  |  |  | $5,967,996 |
Entergy Mississippi |  | $1,045,430 |  |  |  | $1,100,469 |
Entergy New Orleans |  | $449,892 |  |  |  | $443,145 |
Entergy Texas |  | $1,552,741 |  |  |  | $1,702,601 |
System Energy |  | $572,742 |  |  |  | $550,080 |
(a) | The values exclude lease obligations of $56 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2015 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $13,325,930 |  |  |  | $13,578,511 |
Entergy Arkansas |  | $2,629,839 |  |  |  | $2,498,108 |
Entergy Louisiana |  | $4,836,162 |  |  |  | $5,018,786 |
Entergy Mississippi |  | $1,045,085 |  |  |  | $1,087,326 |
Entergy New Orleans |  | $342,880 |  |  |  | $351,040 |
Entergy Texas |  | $1,451,967 |  |  |  | $1,590,616 |
System Energy |  | $572,667 |  |  |  | $552,762 |
(a) | The values exclude lease obligations of $109 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
Entergy Louisiana [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2020. Entergy Corporation also has the ability to issue letters of credit against 50% of the total borrowing capacity of the credit facility. The commitment fee is currently 0.275% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. The weighted average interest rate for the three months ended March 31, 2016 was 2.35% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of March 31, 2016.
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $616 |  | $7 |  | $2,877
Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5 billion. At March 31, 2016, Entergy Corporation had $578 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2016 was 1.14%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of March 31, 2016 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of March 31, 2016 | Letters of Credit Outstanding as of March 31, 2016
Entergy Arkansas |  | April 2016 |  | $20 million (b) |  | 1.93% |  | $— | $—
Entergy Arkansas |  | August 2020 |  | $150 million (c) |  | 1.68% |  | $— | $—
Entergy Louisiana |  | August 2020 |  | $350 million (d) |  | 1.68% |  | $— | $3.1 million
Entergy Mississippi |  | May 2016 |  | $37.5 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $35 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $20 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $10 million (e) |  | 1.93% |  | $— | $—
Entergy New Orleans |  | November 2018 |  | $25 million |  | 2.18% |  | $— | $—
Entergy Texas |  | August 2020 |  | $150 million (f) |  | 1.93% |  | $— | $1.3 million
(a) | The interest rate is the rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility.
(b) | Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. The credit facility expired in April 2016. Entergy Arkansas plans to renew the credit facility.
(c) | The credit facility allows Entergy Arkansas to issue letters of credit against 50% of the borrowing capacity of the facility.
(d) | The credit facility allows Entergy Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility.
(e) | Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. Entergy Mississippi expects to renew its credit facilities prior to expiration.
(f) | The credit facility allows Entergy Texas to issue letters of credit against 50% of the borrowing capacity of the facility.
The commitment fees on the credit facilities range from 0.125% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations related to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of March 31, 2016:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of March 31, 2016 (a)
Entergy Arkansas |  | $25 million |  | 0.70% |  | $1.0 million
Entergy Louisiana |  | $125 million |  | 0.70% |  | $7.0 million
Entergy Mississippi |  | $40 million |  | 0.70% |  | $4.4 million
Entergy New Orleans |  | $15 million |  | 0.75% |  | $6.2 million
Entergy Texas |  | $50 million |  | 0.70% |  | $5.6 million
(a) | The amount for Entergy Mississippi includes $0.4 million related to FTR exposure. See Note 8 to the financial statements herein for discussion of FTRs.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2017. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool. The money pool is an inter-company borrowing arrangement designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from the money pool and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of March 31, 2016 (aggregating both money pool and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $175 |  | $—
Entergy New Orleans | $100 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Entergy Nuclear Vermont Yankee Credit Facilities Entergy Nuclear Vermont Yankee entered into a credit facility guaranteed by Entergy Corporation which expires in January 2018. In the first quarter 2016, Entergy Nuclear Vermont Yankee increased the borrowing capacity of its credit facility to $100 million. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.25% of the undrawn commitment amount. As of March 31, 2016, $61 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the three months ended March 31, 2016 was 2.20% on the drawn portion of the facility. Entergy Nuclear Vermont Yankee also entered into an uncommitted credit facility guaranteed by Entergy Corporation with a borrowing capacity of $85 million which expires in January 2018. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides an additional funding source to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. As of March 31, 2016, there were no cash borrowings outstanding under the credit facility. The rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility was 2.18% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 18 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of March 31, 2016:
Company |  | Expiration Date (a) |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (b) |  | Amount Outstanding as of March 31, 2016
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2016 |  | $85 |  | n/a |  | $—
Entergy Louisiana River Bend VIE |  | June 2016 |  | $100 |  | n/a |  | $—
Entergy Louisiana Waterford VIE |  | June 2016 |  | $90 |  | 1.86% |  | $77.5 (c)
System Energy VIE |  | June 2016 |  | $125 |  | 2.01% |  | $111 (c)
(a) | Prior to expiration, the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy each plan to renew its credit facility.
(b) | Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
(c) | Commercial paper, classified as a current liability.
The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Louisiana VIEs and 0.125% of the undrawn commitment amount for the Entergy Arkansas and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of March 31, 2016 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.23% Series J due July 2016 |  | $55 million
Entergy Arkansas VIE |  | 2.62% Series K due December 2017 |  | $60 million
Entergy Arkansas VIE |  | 3.65% Series L due July 2021 |  | $90 million
Entergy Louisiana River Bend VIE |  | 3.25% Series Q due July 2017 |  | $75 million
Entergy Louisiana River Bend VIE |  | 3.38% Series R due August 2020 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.25% Series G due July 2017 |  | $25 million
Entergy Louisiana Waterford VIE |  | 3.92% Series H due February 2021 |  | $40 million
System Energy VIE |  | 4.02% Series H due February 2017 |  | $50 million
System Energy VIE |  | 3.78% Series I due October 2018 |  | $85 million
In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Redemptions (Entergy Arkansas) In January 2016, Entergy Arkansas issued $325 million of 3.5% Series first mortgage bonds due April 2026. Entergy Arkansas used the proceeds to pay, prior to maturity, its $175 million of 5.66% Series first mortgage bonds due February 2025, and used the remainder of the proceeds, together with other funds, towards the purchase of Power Block 2 at Union Power Station and for general corporate purposes. See Note 13 to the financial statements herein for discussion of the Union purchase. (Entergy Louisiana) In March 2016, Entergy Louisiana issued $200 million of 4.95% Series first mortgage bonds due January 2045. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, to repay borrowings under its $350 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana issued $425 million of 3.25% Series collateral trust mortgage bonds due April 2028. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana arranged for the issuance by the Louisiana Public Facilities Authority of (i) $83.680 million of 3.375% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016A due September 2028, and (ii) $115 million of 3.50% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016B due June 2030, each of which series is evidenced by a separate series of non-interest bearing collateral trust mortgage bonds of Entergy Louisiana. The proceeds from these issuances were held in trust as of March 31, 2016 and were applied in April 2016 to the refunding of $198.68 million of outstanding series of pollution control revenue bonds previously issued on behalf of Entergy Louisiana. In March 2016, Entergy Louisiana issued $51.972 million of Waterford Series collateral trust mortgage notes due July 2017 as part of the purchase of the undivided interests in Waterford 3. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction. In March 2016 the Entergy Louisiana nuclear fuel company variable interest entity redeemed, at maturity, its $20 million of 3.30% Series F notes. (Entergy New Orleans) In March 2016, Entergy New Orleans issued $110 million of 5.50% Series first mortgage bonds due April 2066. Entergy New Orleans used the proceeds to repay borrowings from the money pool, to repay borrowings under its $25 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Block 1 of Union Power Station. See Note 13 to the financial statements for discussion of the Union purchase. (Entergy Texas) In March 2016, Entergy Texas issued $125 million of 2.55% Series first mortgage bonds due June 2021. Entergy Texas used the proceeds for general corporate purposes. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of March 31, 2016 are as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $14,296,872 |  |  |  | $14,811,845 |
Entergy Arkansas |  | $2,777,649 |  |  |  | $2,726,079 |
Entergy Louisiana |  | $5,620,234 |  |  |  | $5,967,996 |
Entergy Mississippi |  | $1,045,430 |  |  |  | $1,100,469 |
Entergy New Orleans |  | $449,892 |  |  |  | $443,145 |
Entergy Texas |  | $1,552,741 |  |  |  | $1,702,601 |
System Energy |  | $572,742 |  |  |  | $550,080 |
(a) | The values exclude lease obligations of $56 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2015 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $13,325,930 |  |  |  | $13,578,511 |
Entergy Arkansas |  | $2,629,839 |  |  |  | $2,498,108 |
Entergy Louisiana |  | $4,836,162 |  |  |  | $5,018,786 |
Entergy Mississippi |  | $1,045,085 |  |  |  | $1,087,326 |
Entergy New Orleans |  | $342,880 |  |  |  | $351,040 |
Entergy Texas |  | $1,451,967 |  |  |  | $1,590,616 |
System Energy |  | $572,667 |  |  |  | $552,762 |
(a) | The values exclude lease obligations of $109 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
Entergy Mississippi [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2020. Entergy Corporation also has the ability to issue letters of credit against 50% of the total borrowing capacity of the credit facility. The commitment fee is currently 0.275% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. The weighted average interest rate for the three months ended March 31, 2016 was 2.35% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of March 31, 2016.
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $616 |  | $7 |  | $2,877
Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5 billion. At March 31, 2016, Entergy Corporation had $578 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2016 was 1.14%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of March 31, 2016 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of March 31, 2016 | Letters of Credit Outstanding as of March 31, 2016
Entergy Arkansas |  | April 2016 |  | $20 million (b) |  | 1.93% |  | $— | $—
Entergy Arkansas |  | August 2020 |  | $150 million (c) |  | 1.68% |  | $— | $—
Entergy Louisiana |  | August 2020 |  | $350 million (d) |  | 1.68% |  | $— | $3.1 million
Entergy Mississippi |  | May 2016 |  | $37.5 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $35 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $20 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $10 million (e) |  | 1.93% |  | $— | $—
Entergy New Orleans |  | November 2018 |  | $25 million |  | 2.18% |  | $— | $—
Entergy Texas |  | August 2020 |  | $150 million (f) |  | 1.93% |  | $— | $1.3 million
(a) | The interest rate is the rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility.
(b) | Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. The credit facility expired in April 2016. Entergy Arkansas plans to renew the credit facility.
(c) | The credit facility allows Entergy Arkansas to issue letters of credit against 50% of the borrowing capacity of the facility.
(d) | The credit facility allows Entergy Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility.
(e) | Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. Entergy Mississippi expects to renew its credit facilities prior to expiration.
(f) | The credit facility allows Entergy Texas to issue letters of credit against 50% of the borrowing capacity of the facility.
The commitment fees on the credit facilities range from 0.125% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations related to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of March 31, 2016:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of March 31, 2016 (a)
Entergy Arkansas |  | $25 million |  | 0.70% |  | $1.0 million
Entergy Louisiana |  | $125 million |  | 0.70% |  | $7.0 million
Entergy Mississippi |  | $40 million |  | 0.70% |  | $4.4 million
Entergy New Orleans |  | $15 million |  | 0.75% |  | $6.2 million
Entergy Texas |  | $50 million |  | 0.70% |  | $5.6 million
(a) | The amount for Entergy Mississippi includes $0.4 million related to FTR exposure. See Note 8 to the financial statements herein for discussion of FTRs.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2017. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool. The money pool is an inter-company borrowing arrangement designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from the money pool and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of March 31, 2016 (aggregating both money pool and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $175 |  | $—
Entergy New Orleans | $100 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Entergy Nuclear Vermont Yankee Credit Facilities Entergy Nuclear Vermont Yankee entered into a credit facility guaranteed by Entergy Corporation which expires in January 2018. In the first quarter 2016, Entergy Nuclear Vermont Yankee increased the borrowing capacity of its credit facility to $100 million. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.25% of the undrawn commitment amount. As of March 31, 2016, $61 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the three months ended March 31, 2016 was 2.20% on the drawn portion of the facility. Entergy Nuclear Vermont Yankee also entered into an uncommitted credit facility guaranteed by Entergy Corporation with a borrowing capacity of $85 million which expires in January 2018. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides an additional funding source to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. As of March 31, 2016, there were no cash borrowings outstanding under the credit facility. The rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility was 2.18% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 18 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of March 31, 2016:
Company |  | Expiration Date (a) |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (b) |  | Amount Outstanding as of March 31, 2016
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2016 |  | $85 |  | n/a |  | $—
Entergy Louisiana River Bend VIE |  | June 2016 |  | $100 |  | n/a |  | $—
Entergy Louisiana Waterford VIE |  | June 2016 |  | $90 |  | 1.86% |  | $77.5 (c)
System Energy VIE |  | June 2016 |  | $125 |  | 2.01% |  | $111 (c)
(a) | Prior to expiration, the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy each plan to renew its credit facility.
(b) | Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
(c) | Commercial paper, classified as a current liability.
The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Louisiana VIEs and 0.125% of the undrawn commitment amount for the Entergy Arkansas and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of March 31, 2016 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.23% Series J due July 2016 |  | $55 million
Entergy Arkansas VIE |  | 2.62% Series K due December 2017 |  | $60 million
Entergy Arkansas VIE |  | 3.65% Series L due July 2021 |  | $90 million
Entergy Louisiana River Bend VIE |  | 3.25% Series Q due July 2017 |  | $75 million
Entergy Louisiana River Bend VIE |  | 3.38% Series R due August 2020 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.25% Series G due July 2017 |  | $25 million
Entergy Louisiana Waterford VIE |  | 3.92% Series H due February 2021 |  | $40 million
System Energy VIE |  | 4.02% Series H due February 2017 |  | $50 million
System Energy VIE |  | 3.78% Series I due October 2018 |  | $85 million
In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Redemptions (Entergy Arkansas) In January 2016, Entergy Arkansas issued $325 million of 3.5% Series first mortgage bonds due April 2026. Entergy Arkansas used the proceeds to pay, prior to maturity, its $175 million of 5.66% Series first mortgage bonds due February 2025, and used the remainder of the proceeds, together with other funds, towards the purchase of Power Block 2 at Union Power Station and for general corporate purposes. See Note 13 to the financial statements herein for discussion of the Union purchase. (Entergy Louisiana) In March 2016, Entergy Louisiana issued $200 million of 4.95% Series first mortgage bonds due January 2045. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, to repay borrowings under its $350 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana issued $425 million of 3.25% Series collateral trust mortgage bonds due April 2028. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana arranged for the issuance by the Louisiana Public Facilities Authority of (i) $83.680 million of 3.375% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016A due September 2028, and (ii) $115 million of 3.50% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016B due June 2030, each of which series is evidenced by a separate series of non-interest bearing collateral trust mortgage bonds of Entergy Louisiana. The proceeds from these issuances were held in trust as of March 31, 2016 and were applied in April 2016 to the refunding of $198.68 million of outstanding series of pollution control revenue bonds previously issued on behalf of Entergy Louisiana. In March 2016, Entergy Louisiana issued $51.972 million of Waterford Series collateral trust mortgage notes due July 2017 as part of the purchase of the undivided interests in Waterford 3. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction. In March 2016 the Entergy Louisiana nuclear fuel company variable interest entity redeemed, at maturity, its $20 million of 3.30% Series F notes. (Entergy New Orleans) In March 2016, Entergy New Orleans issued $110 million of 5.50% Series first mortgage bonds due April 2066. Entergy New Orleans used the proceeds to repay borrowings from the money pool, to repay borrowings under its $25 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Block 1 of Union Power Station. See Note 13 to the financial statements for discussion of the Union purchase. (Entergy Texas) In March 2016, Entergy Texas issued $125 million of 2.55% Series first mortgage bonds due June 2021. Entergy Texas used the proceeds for general corporate purposes. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of March 31, 2016 are as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $14,296,872 |  |  |  | $14,811,845 |
Entergy Arkansas |  | $2,777,649 |  |  |  | $2,726,079 |
Entergy Louisiana |  | $5,620,234 |  |  |  | $5,967,996 |
Entergy Mississippi |  | $1,045,430 |  |  |  | $1,100,469 |
Entergy New Orleans |  | $449,892 |  |  |  | $443,145 |
Entergy Texas |  | $1,552,741 |  |  |  | $1,702,601 |
System Energy |  | $572,742 |  |  |  | $550,080 |
(a) | The values exclude lease obligations of $56 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2015 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $13,325,930 |  |  |  | $13,578,511 |
Entergy Arkansas |  | $2,629,839 |  |  |  | $2,498,108 |
Entergy Louisiana |  | $4,836,162 |  |  |  | $5,018,786 |
Entergy Mississippi |  | $1,045,085 |  |  |  | $1,087,326 |
Entergy New Orleans |  | $342,880 |  |  |  | $351,040 |
Entergy Texas |  | $1,451,967 |  |  |  | $1,590,616 |
System Energy |  | $572,667 |  |  |  | $552,762 |
(a) | The values exclude lease obligations of $109 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
Entergy New Orleans [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2020. Entergy Corporation also has the ability to issue letters of credit against 50% of the total borrowing capacity of the credit facility. The commitment fee is currently 0.275% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. The weighted average interest rate for the three months ended March 31, 2016 was 2.35% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of March 31, 2016.
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $616 |  | $7 |  | $2,877
Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5 billion. At March 31, 2016, Entergy Corporation had $578 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2016 was 1.14%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of March 31, 2016 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of March 31, 2016 | Letters of Credit Outstanding as of March 31, 2016
Entergy Arkansas |  | April 2016 |  | $20 million (b) |  | 1.93% |  | $— | $—
Entergy Arkansas |  | August 2020 |  | $150 million (c) |  | 1.68% |  | $— | $—
Entergy Louisiana |  | August 2020 |  | $350 million (d) |  | 1.68% |  | $— | $3.1 million
Entergy Mississippi |  | May 2016 |  | $37.5 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $35 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $20 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $10 million (e) |  | 1.93% |  | $— | $—
Entergy New Orleans |  | November 2018 |  | $25 million |  | 2.18% |  | $— | $—
Entergy Texas |  | August 2020 |  | $150 million (f) |  | 1.93% |  | $— | $1.3 million
(a) | The interest rate is the rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility.
(b) | Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. The credit facility expired in April 2016. Entergy Arkansas plans to renew the credit facility.
(c) | The credit facility allows Entergy Arkansas to issue letters of credit against 50% of the borrowing capacity of the facility.
(d) | The credit facility allows Entergy Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility.
(e) | Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. Entergy Mississippi expects to renew its credit facilities prior to expiration.
(f) | The credit facility allows Entergy Texas to issue letters of credit against 50% of the borrowing capacity of the facility.
The commitment fees on the credit facilities range from 0.125% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations related to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of March 31, 2016:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of March 31, 2016 (a)
Entergy Arkansas |  | $25 million |  | 0.70% |  | $1.0 million
Entergy Louisiana |  | $125 million |  | 0.70% |  | $7.0 million
Entergy Mississippi |  | $40 million |  | 0.70% |  | $4.4 million
Entergy New Orleans |  | $15 million |  | 0.75% |  | $6.2 million
Entergy Texas |  | $50 million |  | 0.70% |  | $5.6 million
(a) | The amount for Entergy Mississippi includes $0.4 million related to FTR exposure. See Note 8 to the financial statements herein for discussion of FTRs.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2017. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool. The money pool is an inter-company borrowing arrangement designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from the money pool and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of March 31, 2016 (aggregating both money pool and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $175 |  | $—
Entergy New Orleans | $100 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Entergy Nuclear Vermont Yankee Credit Facilities Entergy Nuclear Vermont Yankee entered into a credit facility guaranteed by Entergy Corporation which expires in January 2018. In the first quarter 2016, Entergy Nuclear Vermont Yankee increased the borrowing capacity of its credit facility to $100 million. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.25% of the undrawn commitment amount. As of March 31, 2016, $61 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the three months ended March 31, 2016 was 2.20% on the drawn portion of the facility. Entergy Nuclear Vermont Yankee also entered into an uncommitted credit facility guaranteed by Entergy Corporation with a borrowing capacity of $85 million which expires in January 2018. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides an additional funding source to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. As of March 31, 2016, there were no cash borrowings outstanding under the credit facility. The rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility was 2.18% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 18 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of March 31, 2016:
Company |  | Expiration Date (a) |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (b) |  | Amount Outstanding as of March 31, 2016
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2016 |  | $85 |  | n/a |  | $—
Entergy Louisiana River Bend VIE |  | June 2016 |  | $100 |  | n/a |  | $—
Entergy Louisiana Waterford VIE |  | June 2016 |  | $90 |  | 1.86% |  | $77.5 (c)
System Energy VIE |  | June 2016 |  | $125 |  | 2.01% |  | $111 (c)
(a) | Prior to expiration, the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy each plan to renew its credit facility.
(b) | Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
(c) | Commercial paper, classified as a current liability.
The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Louisiana VIEs and 0.125% of the undrawn commitment amount for the Entergy Arkansas and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of March 31, 2016 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.23% Series J due July 2016 |  | $55 million
Entergy Arkansas VIE |  | 2.62% Series K due December 2017 |  | $60 million
Entergy Arkansas VIE |  | 3.65% Series L due July 2021 |  | $90 million
Entergy Louisiana River Bend VIE |  | 3.25% Series Q due July 2017 |  | $75 million
Entergy Louisiana River Bend VIE |  | 3.38% Series R due August 2020 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.25% Series G due July 2017 |  | $25 million
Entergy Louisiana Waterford VIE |  | 3.92% Series H due February 2021 |  | $40 million
System Energy VIE |  | 4.02% Series H due February 2017 |  | $50 million
System Energy VIE |  | 3.78% Series I due October 2018 |  | $85 million
In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Redemptions (Entergy Arkansas) In January 2016, Entergy Arkansas issued $325 million of 3.5% Series first mortgage bonds due April 2026. Entergy Arkansas used the proceeds to pay, prior to maturity, its $175 million of 5.66% Series first mortgage bonds due February 2025, and used the remainder of the proceeds, together with other funds, towards the purchase of Power Block 2 at Union Power Station and for general corporate purposes. See Note 13 to the financial statements herein for discussion of the Union purchase. (Entergy Louisiana) In March 2016, Entergy Louisiana issued $200 million of 4.95% Series first mortgage bonds due January 2045. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, to repay borrowings under its $350 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana issued $425 million of 3.25% Series collateral trust mortgage bonds due April 2028. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana arranged for the issuance by the Louisiana Public Facilities Authority of (i) $83.680 million of 3.375% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016A due September 2028, and (ii) $115 million of 3.50% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016B due June 2030, each of which series is evidenced by a separate series of non-interest bearing collateral trust mortgage bonds of Entergy Louisiana. The proceeds from these issuances were held in trust as of March 31, 2016 and were applied in April 2016 to the refunding of $198.68 million of outstanding series of pollution control revenue bonds previously issued on behalf of Entergy Louisiana. In March 2016, Entergy Louisiana issued $51.972 million of Waterford Series collateral trust mortgage notes due July 2017 as part of the purchase of the undivided interests in Waterford 3. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction. In March 2016 the Entergy Louisiana nuclear fuel company variable interest entity redeemed, at maturity, its $20 million of 3.30% Series F notes. (Entergy New Orleans) In March 2016, Entergy New Orleans issued $110 million of 5.50% Series first mortgage bonds due April 2066. Entergy New Orleans used the proceeds to repay borrowings from the money pool, to repay borrowings under its $25 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Block 1 of Union Power Station. See Note 13 to the financial statements for discussion of the Union purchase. (Entergy Texas) In March 2016, Entergy Texas issued $125 million of 2.55% Series first mortgage bonds due June 2021. Entergy Texas used the proceeds for general corporate purposes. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of March 31, 2016 are as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $14,296,872 |  |  |  | $14,811,845 |
Entergy Arkansas |  | $2,777,649 |  |  |  | $2,726,079 |
Entergy Louisiana |  | $5,620,234 |  |  |  | $5,967,996 |
Entergy Mississippi |  | $1,045,430 |  |  |  | $1,100,469 |
Entergy New Orleans |  | $449,892 |  |  |  | $443,145 |
Entergy Texas |  | $1,552,741 |  |  |  | $1,702,601 |
System Energy |  | $572,742 |  |  |  | $550,080 |
(a) | The values exclude lease obligations of $56 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2015 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $13,325,930 |  |  |  | $13,578,511 |
Entergy Arkansas |  | $2,629,839 |  |  |  | $2,498,108 |
Entergy Louisiana |  | $4,836,162 |  |  |  | $5,018,786 |
Entergy Mississippi |  | $1,045,085 |  |  |  | $1,087,326 |
Entergy New Orleans |  | $342,880 |  |  |  | $351,040 |
Entergy Texas |  | $1,451,967 |  |  |  | $1,590,616 |
System Energy |  | $572,667 |  |  |  | $552,762 |
(a) | The values exclude lease obligations of $109 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
Entergy Texas [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2020. Entergy Corporation also has the ability to issue letters of credit against 50% of the total borrowing capacity of the credit facility. The commitment fee is currently 0.275% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. The weighted average interest rate for the three months ended March 31, 2016 was 2.35% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of March 31, 2016.
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $616 |  | $7 |  | $2,877
Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5 billion. At March 31, 2016, Entergy Corporation had $578 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2016 was 1.14%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of March 31, 2016 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of March 31, 2016 | Letters of Credit Outstanding as of March 31, 2016
Entergy Arkansas |  | April 2016 |  | $20 million (b) |  | 1.93% |  | $— | $—
Entergy Arkansas |  | August 2020 |  | $150 million (c) |  | 1.68% |  | $— | $—
Entergy Louisiana |  | August 2020 |  | $350 million (d) |  | 1.68% |  | $— | $3.1 million
Entergy Mississippi |  | May 2016 |  | $37.5 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $35 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $20 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $10 million (e) |  | 1.93% |  | $— | $—
Entergy New Orleans |  | November 2018 |  | $25 million |  | 2.18% |  | $— | $—
Entergy Texas |  | August 2020 |  | $150 million (f) |  | 1.93% |  | $— | $1.3 million
(a) | The interest rate is the rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility.
(b) | Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. The credit facility expired in April 2016. Entergy Arkansas plans to renew the credit facility.
(c) | The credit facility allows Entergy Arkansas to issue letters of credit against 50% of the borrowing capacity of the facility.
(d) | The credit facility allows Entergy Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility.
(e) | Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. Entergy Mississippi expects to renew its credit facilities prior to expiration.
(f) | The credit facility allows Entergy Texas to issue letters of credit against 50% of the borrowing capacity of the facility.
The commitment fees on the credit facilities range from 0.125% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations related to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of March 31, 2016:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of March 31, 2016 (a)
Entergy Arkansas |  | $25 million |  | 0.70% |  | $1.0 million
Entergy Louisiana |  | $125 million |  | 0.70% |  | $7.0 million
Entergy Mississippi |  | $40 million |  | 0.70% |  | $4.4 million
Entergy New Orleans |  | $15 million |  | 0.75% |  | $6.2 million
Entergy Texas |  | $50 million |  | 0.70% |  | $5.6 million
(a) | The amount for Entergy Mississippi includes $0.4 million related to FTR exposure. See Note 8 to the financial statements herein for discussion of FTRs.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2017. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool. The money pool is an inter-company borrowing arrangement designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from the money pool and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of March 31, 2016 (aggregating both money pool and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $175 |  | $—
Entergy New Orleans | $100 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Entergy Nuclear Vermont Yankee Credit Facilities Entergy Nuclear Vermont Yankee entered into a credit facility guaranteed by Entergy Corporation which expires in January 2018. In the first quarter 2016, Entergy Nuclear Vermont Yankee increased the borrowing capacity of its credit facility to $100 million. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.25% of the undrawn commitment amount. As of March 31, 2016, $61 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the three months ended March 31, 2016 was 2.20% on the drawn portion of the facility. Entergy Nuclear Vermont Yankee also entered into an uncommitted credit facility guaranteed by Entergy Corporation with a borrowing capacity of $85 million which expires in January 2018. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides an additional funding source to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. As of March 31, 2016, there were no cash borrowings outstanding under the credit facility. The rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility was 2.18% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 18 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of March 31, 2016:
Company |  | Expiration Date (a) |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (b) |  | Amount Outstanding as of March 31, 2016
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2016 |  | $85 |  | n/a |  | $—
Entergy Louisiana River Bend VIE |  | June 2016 |  | $100 |  | n/a |  | $—
Entergy Louisiana Waterford VIE |  | June 2016 |  | $90 |  | 1.86% |  | $77.5 (c)
System Energy VIE |  | June 2016 |  | $125 |  | 2.01% |  | $111 (c)
(a) | Prior to expiration, the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy each plan to renew its credit facility.
(b) | Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
(c) | Commercial paper, classified as a current liability.
The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Louisiana VIEs and 0.125% of the undrawn commitment amount for the Entergy Arkansas and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of March 31, 2016 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.23% Series J due July 2016 |  | $55 million
Entergy Arkansas VIE |  | 2.62% Series K due December 2017 |  | $60 million
Entergy Arkansas VIE |  | 3.65% Series L due July 2021 |  | $90 million
Entergy Louisiana River Bend VIE |  | 3.25% Series Q due July 2017 |  | $75 million
Entergy Louisiana River Bend VIE |  | 3.38% Series R due August 2020 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.25% Series G due July 2017 |  | $25 million
Entergy Louisiana Waterford VIE |  | 3.92% Series H due February 2021 |  | $40 million
System Energy VIE |  | 4.02% Series H due February 2017 |  | $50 million
System Energy VIE |  | 3.78% Series I due October 2018 |  | $85 million
In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Redemptions (Entergy Arkansas) In January 2016, Entergy Arkansas issued $325 million of 3.5% Series first mortgage bonds due April 2026. Entergy Arkansas used the proceeds to pay, prior to maturity, its $175 million of 5.66% Series first mortgage bonds due February 2025, and used the remainder of the proceeds, together with other funds, towards the purchase of Power Block 2 at Union Power Station and for general corporate purposes. See Note 13 to the financial statements herein for discussion of the Union purchase. (Entergy Louisiana) In March 2016, Entergy Louisiana issued $200 million of 4.95% Series first mortgage bonds due January 2045. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, to repay borrowings under its $350 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana issued $425 million of 3.25% Series collateral trust mortgage bonds due April 2028. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana arranged for the issuance by the Louisiana Public Facilities Authority of (i) $83.680 million of 3.375% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016A due September 2028, and (ii) $115 million of 3.50% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016B due June 2030, each of which series is evidenced by a separate series of non-interest bearing collateral trust mortgage bonds of Entergy Louisiana. The proceeds from these issuances were held in trust as of March 31, 2016 and were applied in April 2016 to the refunding of $198.68 million of outstanding series of pollution control revenue bonds previously issued on behalf of Entergy Louisiana. In March 2016, Entergy Louisiana issued $51.972 million of Waterford Series collateral trust mortgage notes due July 2017 as part of the purchase of the undivided interests in Waterford 3. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction. In March 2016 the Entergy Louisiana nuclear fuel company variable interest entity redeemed, at maturity, its $20 million of 3.30% Series F notes. (Entergy New Orleans) In March 2016, Entergy New Orleans issued $110 million of 5.50% Series first mortgage bonds due April 2066. Entergy New Orleans used the proceeds to repay borrowings from the money pool, to repay borrowings under its $25 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Block 1 of Union Power Station. See Note 13 to the financial statements for discussion of the Union purchase. (Entergy Texas) In March 2016, Entergy Texas issued $125 million of 2.55% Series first mortgage bonds due June 2021. Entergy Texas used the proceeds for general corporate purposes. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of March 31, 2016 are as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $14,296,872 |  |  |  | $14,811,845 |
Entergy Arkansas |  | $2,777,649 |  |  |  | $2,726,079 |
Entergy Louisiana |  | $5,620,234 |  |  |  | $5,967,996 |
Entergy Mississippi |  | $1,045,430 |  |  |  | $1,100,469 |
Entergy New Orleans |  | $449,892 |  |  |  | $443,145 |
Entergy Texas |  | $1,552,741 |  |  |  | $1,702,601 |
System Energy |  | $572,742 |  |  |  | $550,080 |
(a) | The values exclude lease obligations of $56 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2015 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $13,325,930 |  |  |  | $13,578,511 |
Entergy Arkansas |  | $2,629,839 |  |  |  | $2,498,108 |
Entergy Louisiana |  | $4,836,162 |  |  |  | $5,018,786 |
Entergy Mississippi |  | $1,045,085 |  |  |  | $1,087,326 |
Entergy New Orleans |  | $342,880 |  |  |  | $351,040 |
Entergy Texas |  | $1,451,967 |  |  |  | $1,590,616 |
System Energy |  | $572,667 |  |  |  | $552,762 |
(a) | The values exclude lease obligations of $109 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
System Energy [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2020. Entergy Corporation also has the ability to issue letters of credit against 50% of the total borrowing capacity of the credit facility. The commitment fee is currently 0.275% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. The weighted average interest rate for the three months ended March 31, 2016 was 2.35% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of March 31, 2016.
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $616 |  | $7 |  | $2,877
Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5 billion. At March 31, 2016, Entergy Corporation had $578 million of commercial paper outstanding. The weighted-average interest rate for the three months ended March 31, 2016 was 1.14%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of March 31, 2016 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of March 31, 2016 | Letters of Credit Outstanding as of March 31, 2016
Entergy Arkansas |  | April 2016 |  | $20 million (b) |  | 1.93% |  | $— | $—
Entergy Arkansas |  | August 2020 |  | $150 million (c) |  | 1.68% |  | $— | $—
Entergy Louisiana |  | August 2020 |  | $350 million (d) |  | 1.68% |  | $— | $3.1 million
Entergy Mississippi |  | May 2016 |  | $37.5 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $35 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $20 million (e) |  | 1.93% |  | $— | $—
Entergy Mississippi |  | May 2016 |  | $10 million (e) |  | 1.93% |  | $— | $—
Entergy New Orleans |  | November 2018 |  | $25 million |  | 2.18% |  | $— | $—
Entergy Texas |  | August 2020 |  | $150 million (f) |  | 1.93% |  | $— | $1.3 million
(a) | The interest rate is the rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility.
(b) | Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. The credit facility expired in April 2016. Entergy Arkansas plans to renew the credit facility.
(c) | The credit facility allows Entergy Arkansas to issue letters of credit against 50% of the borrowing capacity of the facility.
(d) | The credit facility allows Entergy Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility.
(e) | Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. Entergy Mississippi expects to renew its credit facilities prior to expiration.
(f) | The credit facility allows Entergy Texas to issue letters of credit against 50% of the borrowing capacity of the facility.
The commitment fees on the credit facilities range from 0.125% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations related to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of March 31, 2016:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of March 31, 2016 (a)
Entergy Arkansas |  | $25 million |  | 0.70% |  | $1.0 million
Entergy Louisiana |  | $125 million |  | 0.70% |  | $7.0 million
Entergy Mississippi |  | $40 million |  | 0.70% |  | $4.4 million
Entergy New Orleans |  | $15 million |  | 0.75% |  | $6.2 million
Entergy Texas |  | $50 million |  | 0.70% |  | $5.6 million
(a) | The amount for Entergy Mississippi includes $0.4 million related to FTR exposure. See Note 8 to the financial statements herein for discussion of FTRs.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2017. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool. The money pool is an inter-company borrowing arrangement designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from the money pool and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of March 31, 2016 (aggregating both money pool and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $175 |  | $—
Entergy New Orleans | $100 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Entergy Nuclear Vermont Yankee Credit Facilities Entergy Nuclear Vermont Yankee entered into a credit facility guaranteed by Entergy Corporation which expires in January 2018. In the first quarter 2016, Entergy Nuclear Vermont Yankee increased the borrowing capacity of its credit facility to $100 million. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.25% of the undrawn commitment amount. As of March 31, 2016, $61 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the three months ended March 31, 2016 was 2.20% on the drawn portion of the facility. Entergy Nuclear Vermont Yankee also entered into an uncommitted credit facility guaranteed by Entergy Corporation with a borrowing capacity of $85 million which expires in January 2018. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides an additional funding source to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. As of March 31, 2016, there were no cash borrowings outstanding under the credit facility. The rate as of March 31, 2016 that would most likely apply to outstanding borrowings under the facility was 2.18% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 18 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of March 31, 2016:
Company |  | Expiration Date (a) |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (b) |  | Amount Outstanding as of March 31, 2016
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2016 |  | $85 |  | n/a |  | $—
Entergy Louisiana River Bend VIE |  | June 2016 |  | $100 |  | n/a |  | $—
Entergy Louisiana Waterford VIE |  | June 2016 |  | $90 |  | 1.86% |  | $77.5 (c)
System Energy VIE |  | June 2016 |  | $125 |  | 2.01% |  | $111 (c)
(a) | Prior to expiration, the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy each plan to renew its credit facility.
(b) | Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
(c) | Commercial paper, classified as a current liability.
The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Louisiana VIEs and 0.125% of the undrawn commitment amount for the Entergy Arkansas and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of March 31, 2016 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.23% Series J due July 2016 |  | $55 million
Entergy Arkansas VIE |  | 2.62% Series K due December 2017 |  | $60 million
Entergy Arkansas VIE |  | 3.65% Series L due July 2021 |  | $90 million
Entergy Louisiana River Bend VIE |  | 3.25% Series Q due July 2017 |  | $75 million
Entergy Louisiana River Bend VIE |  | 3.38% Series R due August 2020 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.25% Series G due July 2017 |  | $25 million
Entergy Louisiana Waterford VIE |  | 3.92% Series H due February 2021 |  | $40 million
System Energy VIE |  | 4.02% Series H due February 2017 |  | $50 million
System Energy VIE |  | 3.78% Series I due October 2018 |  | $85 million
In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Redemptions (Entergy Arkansas) In January 2016, Entergy Arkansas issued $325 million of 3.5% Series first mortgage bonds due April 2026. Entergy Arkansas used the proceeds to pay, prior to maturity, its $175 million of 5.66% Series first mortgage bonds due February 2025, and used the remainder of the proceeds, together with other funds, towards the purchase of Power Block 2 at Union Power Station and for general corporate purposes. See Note 13 to the financial statements herein for discussion of the Union purchase. (Entergy Louisiana) In March 2016, Entergy Louisiana issued $200 million of 4.95% Series first mortgage bonds due January 2045. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, to repay borrowings under its $350 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana issued $425 million of 3.25% Series collateral trust mortgage bonds due April 2028. Entergy Louisiana used the proceeds to pay, together with other funds, the $60 million cash portion of the price to purchase the undivided interests of Waterford 3, to repay borrowings from the money pool, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Blocks 3 and 4 at Union Power Station. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction and Note 13 to the financial statements herein for discussion of the Union purchase. In March 2016, Entergy Louisiana arranged for the issuance by the Louisiana Public Facilities Authority of (i) $83.680 million of 3.375% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016A due September 2028, and (ii) $115 million of 3.50% pollution control refunding revenue bonds (Entergy Louisiana, LLC Project) Series 2016B due June 2030, each of which series is evidenced by a separate series of non-interest bearing collateral trust mortgage bonds of Entergy Louisiana. The proceeds from these issuances were held in trust as of March 31, 2016 and were applied in April 2016 to the refunding of $198.68 million of outstanding series of pollution control revenue bonds previously issued on behalf of Entergy Louisiana. In March 2016, Entergy Louisiana issued $51.972 million of Waterford Series collateral trust mortgage notes due July 2017 as part of the purchase of the undivided interests in Waterford 3. See Note 11 to the financial statements herein for discussion of the Waterford 3 transaction. In March 2016 the Entergy Louisiana nuclear fuel company variable interest entity redeemed, at maturity, its $20 million of 3.30% Series F notes. (Entergy New Orleans) In March 2016, Entergy New Orleans issued $110 million of 5.50% Series first mortgage bonds due April 2066. Entergy New Orleans used the proceeds to repay borrowings from the money pool, to repay borrowings under its $25 million credit facility, and for general corporate purposes. A portion of the proceeds of the borrowings described in the preceding sentence were used, together with other funds, for the purchase of Power Block 1 of Union Power Station. See Note 13 to the financial statements for discussion of the Union purchase. (Entergy Texas) In March 2016, Entergy Texas issued $125 million of 2.55% Series first mortgage bonds due June 2021. Entergy Texas used the proceeds for general corporate purposes. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of March 31, 2016 are as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $14,296,872 |  |  |  | $14,811,845 |
Entergy Arkansas |  | $2,777,649 |  |  |  | $2,726,079 |
Entergy Louisiana |  | $5,620,234 |  |  |  | $5,967,996 |
Entergy Mississippi |  | $1,045,430 |  |  |  | $1,100,469 |
Entergy New Orleans |  | $449,892 |  |  |  | $443,145 |
Entergy Texas |  | $1,552,741 |  |  |  | $1,702,601 |
System Energy |  | $572,742 |  |  |  | $550,080 |
(a) | The values exclude lease obligations of $56 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2015 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a) (b)
| (In Thousands)
Entergy |  | $13,325,930 |  |  |  | $13,578,511 |
Entergy Arkansas |  | $2,629,839 |  |  |  | $2,498,108 |
Entergy Louisiana |  | $4,836,162 |  |  |  | $5,018,786 |
Entergy Mississippi |  | $1,045,085 |  |  |  | $1,087,326 |
Entergy New Orleans |  | $342,880 |  |  |  | $351,040 |
Entergy Texas |  | $1,451,967 |  |  |  | $1,590,616 |
System Energy |  | $572,667 |  |  |  | $552,762 |
(a) | The values exclude lease obligations of $109 million at Entergy Louisiana and $34 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $35 million at Entergy, and include debt due within one year.
(b) | Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.

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