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Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | 6 Months Ended
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Jun. 30, 2022
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | NOTE 4. 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 June 2027. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% 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 six months ended June 30, 2022 was 1.96% on the drawn portion of the facility. As of June 30, 2022, amounts outstanding and capacity available under the $3.5 billion credit facility are:
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $150 |  | $3 |  | $3,347
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 Entergy Corporation credit facility’s maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of June 30, 2022, Entergy Corporation had $1.398 billion of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2022 was 0.91%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2022 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of June 30, 2022 |  | Letters of Credit Outstanding as of June 30, 2022
Entergy Arkansas |  | April 2023 |  | $25 million (b) |  | 3.19% |  | $— |  | $—
Entergy Arkansas |  | June 2027 |  | $150 million (c) |  | 2.75% |  | $— |  | $—
Entergy Louisiana |  | June 2027 |  | $350 million (c) |  | 2.88% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $45 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $40 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $10 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | July 2024 |  | $150 million |  | 2.42% |  | $100 million |  | $—
Entergy New Orleans |  | June 2024 |  | $25 million (c) |  | 3.29% |  | $— |  | $—
Entergy Texas |  | June 2027 |  | $150 million (c) |  | 2.88% |  | $— |  | $1.1 million
(a)The interest rate is the estimated interest rate as of June 30, 2022 that would have been applied to outstanding borrowings under the facility. (b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d)Borrowings under the short-term Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. 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 an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2022:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of June 30, 2022 (a) (b)
Entergy Arkansas |  | $25 million |  | 0.78% |  | $4.5 million
Entergy Louisiana |  | $125 million |  | 0.78% |  | $70.0 million
Entergy Mississippi |  | $65 million |  | 0.78% |  | $4.3 million
Entergy New Orleans |  | $15 million |  | 1.625% |  | $1.0 million
Entergy Texas |  | $80 million |  | 0.875% |  | $79.6 million
(a)As of June 30, 2022, letters of credit posted with MISO covered financial transmission right exposure of $0.4 million for Entergy Mississippi and $5.3 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights. (b)As of June 30, 2022, in addition to the $4.3 million MISO letters of credit, Entergy Mississippi had $7 million in non-MISO letters of credit outstanding under this facility. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized short-term borrowing limits for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy are effective through October 2023. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following were the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2022 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $200 |  | $—
Entergy New Orleans | $150 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Vermont Yankee Credit Facility (Entergy Corporation) In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $139 million and expires in December 2023. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2022, $139 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2022 was 2.02% on the drawn portion of the facility. See Note 14 to the financial statements in the Form 10-K for discussion of the transfer of Entergy Nuclear Vermont Yankee to NorthStar. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 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 June 30, 2022:
Company |  | Expiration Date |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (a) |  | Amount Outstanding as of June 30, 2022
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2025 |  | $80 |  | 1.55% |  | $12
Entergy Louisiana River Bend VIE |  | June 2025 |  | $105 |  | 1.37% |  | $20
Entergy Louisiana Waterford VIE |  | June 2025 |  | $105 |  | 1.49% |  | $70.4
System Energy VIE |  | June 2025 |  | $120 |  | 1.54% |  | $93.8
(a)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. The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, 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. Each lessee is in compliance with this covenant. The nuclear fuel company variable interest entities had notes payable that were included in debt on the respective balance sheets as of June 30, 2022 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.17% Series M due December 2023 |  | $40 million
Entergy Arkansas VIE |  | 1.84% Series N due July 2026 |  | $90 million
Entergy Louisiana River Bend VIE |  | 2.51% Series V due June 2027 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.22% Series I due December 2023 |  | $20 million
System Energy VIE |  | 2.05% Series K due September 2027 |  | $90 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. Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through October 2023 for issuances by its nuclear fuel company variable interest entities. Debt Issuances and Retirements (Entergy Corporation) In June 2022, Entergy Corporation redeemed $650 million of 4.00% Series senior notes due July 2022. (Entergy Arkansas) In March 2022, Entergy Arkansas issued $200 million of 4.20% Series mortgage bonds due April 2049. Entergy Arkansas used the proceeds for general corporate purposes, including the repayment of borrowings from the Entergy System money pool. (Entergy Louisiana) In December 2021, Entergy Louisiana entered into a term loan credit agreement providing a $1.2 billion unsecured term loan due June 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 1.18%. Entergy Louisiana received the funds in January 2022 and used the proceeds for general corporate purposes, including storm restoration costs related to Hurricane Ida. Entergy Louisiana repaid the full amount of the loan in June 2022. In May 2022, Entergy Louisiana redeemed, prior to maturity, a portion of its 0.62% Series mortgage bonds due November 2023. Entergy Louisiana redeemed $435 million in aggregate principal amount of the bonds, leaving $665 million in aggregate principal amount outstanding. (Entergy Mississippi) In June 2022, Entergy Mississippi entered into a term loan credit agreement providing a $150 million unsecured term loan due December 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The rate set as of June 30, 2022 was 2.47%. Entergy Mississippi used the funds for general corporate purposes. (System Energy) In May 2022, System Energy entered into a term loan credit agreement providing a $50 million term loan due November 2023. The term loan is secured by a series of first mortgage bonds and bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 2.20%. System Energy used the funds for general corporate purposes. Entergy Texas Securitization Bonds In January 2022 the PUCT authorized the issuance of securitization bonds to recover $242.9 million of Entergy Texas’s Hurricane Laura, Hurricane Delta, and Winter Storm Uri restoration costs, plus carrying costs, plus approximately $13.3 million relating to a system restoration regulatory asset related to Hurricane Harvey, plus up-front qualified costs. In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned and consolidated by Entergy Texas, issued $290.85 million of senior secured restoration bonds (securitization bonds), as follows:
| Amount
| (In Thousands)
Senior Secured Restoration Bonds: |
Tranche A-1 (3.051%) due December 2028 | $100,000 |
Tranche A-2 (3.697%) due December 2036 | 190,850 |
Total senior secured restoration bonds | $290,850 |
Although the principal amount of each tranche is not due until the dates given above, Entergy Texas Restoration Funding II expects to make principal payments on the securitization bonds over the next five years in the amounts of $12.3 million for 2022, $17.8 million for 2023, $18.3 million for 2024, $18.8 million for 2025, and $19.4 million for 2026. All of the expected principal payments for 2022-2026 are for Tranche A-1. With the proceeds, Entergy Texas Restoration Funding II purchased from Entergy Texas the transition property, which is the right to recover from customers through a system restoration charge amounts sufficient to service the securitization bonds. Entergy Texas expects to use the proceeds to reduce its outstanding debt. The creditors of Entergy Texas do not have recourse to the assets or revenues of Entergy Texas Restoration Funding II, including the transition property, and the creditors of Entergy Texas Restoration Funding II do not have recourse to the assets or revenues of Entergy Texas. Entergy Texas has no payment obligations to Entergy Texas Restoration Funding II except to remit system restoration charge collections. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2022 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,452,926 |  |  | $23,227,270 |
Entergy Arkansas | $4,175,929 |  |  | $3,805,958 |
Entergy Louisiana | $10,369,840 |  |  | $9,626,860 |
Entergy Mississippi | $2,430,499 |  |  | $2,134,560 |
Entergy New Orleans | $782,815 |  |  | $743,715 |
Entergy Texas | $2,612,874 |  |  | $2,360,498 |
System Energy | $798,615 |  |  | $743,102 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2021 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,880,901 |  |  | $27,061,171 |
Entergy Arkansas | $3,958,862 |  |  | $4,176,577 |
Entergy Louisiana | $10,914,346 |  |  | $11,492,650 |
Entergy Mississippi | $2,179,989 |  |  | $2,346,230 |
Entergy New Orleans | $788,165 |  |  | $765,538 |
Entergy Texas | $2,354,148 |  |  | $2,483,995 |
System Energy | $741,296 |  |  | $743,040 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.
Entergy Arkansas [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | NOTE 4. 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 June 2027. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% 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 six months ended June 30, 2022 was 1.96% on the drawn portion of the facility. As of June 30, 2022, amounts outstanding and capacity available under the $3.5 billion credit facility are:
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $150 |  | $3 |  | $3,347
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 Entergy Corporation credit facility’s maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of June 30, 2022, Entergy Corporation had $1.398 billion of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2022 was 0.91%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2022 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of June 30, 2022 |  | Letters of Credit Outstanding as of June 30, 2022
Entergy Arkansas |  | April 2023 |  | $25 million (b) |  | 3.19% |  | $— |  | $—
Entergy Arkansas |  | June 2027 |  | $150 million (c) |  | 2.75% |  | $— |  | $—
Entergy Louisiana |  | June 2027 |  | $350 million (c) |  | 2.88% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $45 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $40 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $10 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | July 2024 |  | $150 million |  | 2.42% |  | $100 million |  | $—
Entergy New Orleans |  | June 2024 |  | $25 million (c) |  | 3.29% |  | $— |  | $—
Entergy Texas |  | June 2027 |  | $150 million (c) |  | 2.88% |  | $— |  | $1.1 million
(a)The interest rate is the estimated interest rate as of June 30, 2022 that would have been applied to outstanding borrowings under the facility. (b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d)Borrowings under the short-term Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. 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 an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2022:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of June 30, 2022 (a) (b)
Entergy Arkansas |  | $25 million |  | 0.78% |  | $4.5 million
Entergy Louisiana |  | $125 million |  | 0.78% |  | $70.0 million
Entergy Mississippi |  | $65 million |  | 0.78% |  | $4.3 million
Entergy New Orleans |  | $15 million |  | 1.625% |  | $1.0 million
Entergy Texas |  | $80 million |  | 0.875% |  | $79.6 million
(a)As of June 30, 2022, letters of credit posted with MISO covered financial transmission right exposure of $0.4 million for Entergy Mississippi and $5.3 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights. (b)As of June 30, 2022, in addition to the $4.3 million MISO letters of credit, Entergy Mississippi had $7 million in non-MISO letters of credit outstanding under this facility. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized short-term borrowing limits for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy are effective through October 2023. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following were the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2022 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $200 |  | $—
Entergy New Orleans | $150 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Vermont Yankee Credit Facility (Entergy Corporation) In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $139 million and expires in December 2023. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2022, $139 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2022 was 2.02% on the drawn portion of the facility. See Note 14 to the financial statements in the Form 10-K for discussion of the transfer of Entergy Nuclear Vermont Yankee to NorthStar. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 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 June 30, 2022:
Company |  | Expiration Date |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (a) |  | Amount Outstanding as of June 30, 2022
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2025 |  | $80 |  | 1.55% |  | $12
Entergy Louisiana River Bend VIE |  | June 2025 |  | $105 |  | 1.37% |  | $20
Entergy Louisiana Waterford VIE |  | June 2025 |  | $105 |  | 1.49% |  | $70.4
System Energy VIE |  | June 2025 |  | $120 |  | 1.54% |  | $93.8
(a)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. The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, 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. Each lessee is in compliance with this covenant. The nuclear fuel company variable interest entities had notes payable that were included in debt on the respective balance sheets as of June 30, 2022 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.17% Series M due December 2023 |  | $40 million
Entergy Arkansas VIE |  | 1.84% Series N due July 2026 |  | $90 million
Entergy Louisiana River Bend VIE |  | 2.51% Series V due June 2027 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.22% Series I due December 2023 |  | $20 million
System Energy VIE |  | 2.05% Series K due September 2027 |  | $90 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. Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through October 2023 for issuances by its nuclear fuel company variable interest entities. Debt Issuances and Retirements (Entergy Corporation) In June 2022, Entergy Corporation redeemed $650 million of 4.00% Series senior notes due July 2022. (Entergy Arkansas) In March 2022, Entergy Arkansas issued $200 million of 4.20% Series mortgage bonds due April 2049. Entergy Arkansas used the proceeds for general corporate purposes, including the repayment of borrowings from the Entergy System money pool. (Entergy Louisiana) In December 2021, Entergy Louisiana entered into a term loan credit agreement providing a $1.2 billion unsecured term loan due June 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 1.18%. Entergy Louisiana received the funds in January 2022 and used the proceeds for general corporate purposes, including storm restoration costs related to Hurricane Ida. Entergy Louisiana repaid the full amount of the loan in June 2022. In May 2022, Entergy Louisiana redeemed, prior to maturity, a portion of its 0.62% Series mortgage bonds due November 2023. Entergy Louisiana redeemed $435 million in aggregate principal amount of the bonds, leaving $665 million in aggregate principal amount outstanding. (Entergy Mississippi) In June 2022, Entergy Mississippi entered into a term loan credit agreement providing a $150 million unsecured term loan due December 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The rate set as of June 30, 2022 was 2.47%. Entergy Mississippi used the funds for general corporate purposes. (System Energy) In May 2022, System Energy entered into a term loan credit agreement providing a $50 million term loan due November 2023. The term loan is secured by a series of first mortgage bonds and bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 2.20%. System Energy used the funds for general corporate purposes. Entergy Texas Securitization Bonds In January 2022 the PUCT authorized the issuance of securitization bonds to recover $242.9 million of Entergy Texas’s Hurricane Laura, Hurricane Delta, and Winter Storm Uri restoration costs, plus carrying costs, plus approximately $13.3 million relating to a system restoration regulatory asset related to Hurricane Harvey, plus up-front qualified costs. In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned and consolidated by Entergy Texas, issued $290.85 million of senior secured restoration bonds (securitization bonds), as follows:
| Amount
| (In Thousands)
Senior Secured Restoration Bonds: |
Tranche A-1 (3.051%) due December 2028 | $100,000 |
Tranche A-2 (3.697%) due December 2036 | 190,850 |
Total senior secured restoration bonds | $290,850 |
Although the principal amount of each tranche is not due until the dates given above, Entergy Texas Restoration Funding II expects to make principal payments on the securitization bonds over the next five years in the amounts of $12.3 million for 2022, $17.8 million for 2023, $18.3 million for 2024, $18.8 million for 2025, and $19.4 million for 2026. All of the expected principal payments for 2022-2026 are for Tranche A-1. With the proceeds, Entergy Texas Restoration Funding II purchased from Entergy Texas the transition property, which is the right to recover from customers through a system restoration charge amounts sufficient to service the securitization bonds. Entergy Texas expects to use the proceeds to reduce its outstanding debt. The creditors of Entergy Texas do not have recourse to the assets or revenues of Entergy Texas Restoration Funding II, including the transition property, and the creditors of Entergy Texas Restoration Funding II do not have recourse to the assets or revenues of Entergy Texas. Entergy Texas has no payment obligations to Entergy Texas Restoration Funding II except to remit system restoration charge collections. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2022 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,452,926 |  |  | $23,227,270 |
Entergy Arkansas | $4,175,929 |  |  | $3,805,958 |
Entergy Louisiana | $10,369,840 |  |  | $9,626,860 |
Entergy Mississippi | $2,430,499 |  |  | $2,134,560 |
Entergy New Orleans | $782,815 |  |  | $743,715 |
Entergy Texas | $2,612,874 |  |  | $2,360,498 |
System Energy | $798,615 |  |  | $743,102 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2021 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,880,901 |  |  | $27,061,171 |
Entergy Arkansas | $3,958,862 |  |  | $4,176,577 |
Entergy Louisiana | $10,914,346 |  |  | $11,492,650 |
Entergy Mississippi | $2,179,989 |  |  | $2,346,230 |
Entergy New Orleans | $788,165 |  |  | $765,538 |
Entergy Texas | $2,354,148 |  |  | $2,483,995 |
System Energy | $741,296 |  |  | $743,040 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.
Entergy Louisiana [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | NOTE 4. 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 June 2027. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% 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 six months ended June 30, 2022 was 1.96% on the drawn portion of the facility. As of June 30, 2022, amounts outstanding and capacity available under the $3.5 billion credit facility are:
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $150 |  | $3 |  | $3,347
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 Entergy Corporation credit facility’s maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of June 30, 2022, Entergy Corporation had $1.398 billion of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2022 was 0.91%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2022 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of June 30, 2022 |  | Letters of Credit Outstanding as of June 30, 2022
Entergy Arkansas |  | April 2023 |  | $25 million (b) |  | 3.19% |  | $— |  | $—
Entergy Arkansas |  | June 2027 |  | $150 million (c) |  | 2.75% |  | $— |  | $—
Entergy Louisiana |  | June 2027 |  | $350 million (c) |  | 2.88% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $45 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $40 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $10 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | July 2024 |  | $150 million |  | 2.42% |  | $100 million |  | $—
Entergy New Orleans |  | June 2024 |  | $25 million (c) |  | 3.29% |  | $— |  | $—
Entergy Texas |  | June 2027 |  | $150 million (c) |  | 2.88% |  | $— |  | $1.1 million
(a)The interest rate is the estimated interest rate as of June 30, 2022 that would have been applied to outstanding borrowings under the facility. (b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d)Borrowings under the short-term Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. 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 an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2022:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of June 30, 2022 (a) (b)
Entergy Arkansas |  | $25 million |  | 0.78% |  | $4.5 million
Entergy Louisiana |  | $125 million |  | 0.78% |  | $70.0 million
Entergy Mississippi |  | $65 million |  | 0.78% |  | $4.3 million
Entergy New Orleans |  | $15 million |  | 1.625% |  | $1.0 million
Entergy Texas |  | $80 million |  | 0.875% |  | $79.6 million
(a)As of June 30, 2022, letters of credit posted with MISO covered financial transmission right exposure of $0.4 million for Entergy Mississippi and $5.3 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights. (b)As of June 30, 2022, in addition to the $4.3 million MISO letters of credit, Entergy Mississippi had $7 million in non-MISO letters of credit outstanding under this facility. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized short-term borrowing limits for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy are effective through October 2023. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following were the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2022 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $200 |  | $—
Entergy New Orleans | $150 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Vermont Yankee Credit Facility (Entergy Corporation) In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $139 million and expires in December 2023. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2022, $139 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2022 was 2.02% on the drawn portion of the facility. See Note 14 to the financial statements in the Form 10-K for discussion of the transfer of Entergy Nuclear Vermont Yankee to NorthStar. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 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 June 30, 2022:
Company |  | Expiration Date |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (a) |  | Amount Outstanding as of June 30, 2022
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2025 |  | $80 |  | 1.55% |  | $12
Entergy Louisiana River Bend VIE |  | June 2025 |  | $105 |  | 1.37% |  | $20
Entergy Louisiana Waterford VIE |  | June 2025 |  | $105 |  | 1.49% |  | $70.4
System Energy VIE |  | June 2025 |  | $120 |  | 1.54% |  | $93.8
(a)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. The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, 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. Each lessee is in compliance with this covenant. The nuclear fuel company variable interest entities had notes payable that were included in debt on the respective balance sheets as of June 30, 2022 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.17% Series M due December 2023 |  | $40 million
Entergy Arkansas VIE |  | 1.84% Series N due July 2026 |  | $90 million
Entergy Louisiana River Bend VIE |  | 2.51% Series V due June 2027 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.22% Series I due December 2023 |  | $20 million
System Energy VIE |  | 2.05% Series K due September 2027 |  | $90 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. Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through October 2023 for issuances by its nuclear fuel company variable interest entities. Debt Issuances and Retirements (Entergy Corporation) In June 2022, Entergy Corporation redeemed $650 million of 4.00% Series senior notes due July 2022. (Entergy Arkansas) In March 2022, Entergy Arkansas issued $200 million of 4.20% Series mortgage bonds due April 2049. Entergy Arkansas used the proceeds for general corporate purposes, including the repayment of borrowings from the Entergy System money pool. (Entergy Louisiana) In December 2021, Entergy Louisiana entered into a term loan credit agreement providing a $1.2 billion unsecured term loan due June 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 1.18%. Entergy Louisiana received the funds in January 2022 and used the proceeds for general corporate purposes, including storm restoration costs related to Hurricane Ida. Entergy Louisiana repaid the full amount of the loan in June 2022. In May 2022, Entergy Louisiana redeemed, prior to maturity, a portion of its 0.62% Series mortgage bonds due November 2023. Entergy Louisiana redeemed $435 million in aggregate principal amount of the bonds, leaving $665 million in aggregate principal amount outstanding. (Entergy Mississippi) In June 2022, Entergy Mississippi entered into a term loan credit agreement providing a $150 million unsecured term loan due December 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The rate set as of June 30, 2022 was 2.47%. Entergy Mississippi used the funds for general corporate purposes. (System Energy) In May 2022, System Energy entered into a term loan credit agreement providing a $50 million term loan due November 2023. The term loan is secured by a series of first mortgage bonds and bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 2.20%. System Energy used the funds for general corporate purposes. Entergy Texas Securitization Bonds In January 2022 the PUCT authorized the issuance of securitization bonds to recover $242.9 million of Entergy Texas’s Hurricane Laura, Hurricane Delta, and Winter Storm Uri restoration costs, plus carrying costs, plus approximately $13.3 million relating to a system restoration regulatory asset related to Hurricane Harvey, plus up-front qualified costs. In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned and consolidated by Entergy Texas, issued $290.85 million of senior secured restoration bonds (securitization bonds), as follows:
| Amount
| (In Thousands)
Senior Secured Restoration Bonds: |
Tranche A-1 (3.051%) due December 2028 | $100,000 |
Tranche A-2 (3.697%) due December 2036 | 190,850 |
Total senior secured restoration bonds | $290,850 |
Although the principal amount of each tranche is not due until the dates given above, Entergy Texas Restoration Funding II expects to make principal payments on the securitization bonds over the next five years in the amounts of $12.3 million for 2022, $17.8 million for 2023, $18.3 million for 2024, $18.8 million for 2025, and $19.4 million for 2026. All of the expected principal payments for 2022-2026 are for Tranche A-1. With the proceeds, Entergy Texas Restoration Funding II purchased from Entergy Texas the transition property, which is the right to recover from customers through a system restoration charge amounts sufficient to service the securitization bonds. Entergy Texas expects to use the proceeds to reduce its outstanding debt. The creditors of Entergy Texas do not have recourse to the assets or revenues of Entergy Texas Restoration Funding II, including the transition property, and the creditors of Entergy Texas Restoration Funding II do not have recourse to the assets or revenues of Entergy Texas. Entergy Texas has no payment obligations to Entergy Texas Restoration Funding II except to remit system restoration charge collections. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2022 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,452,926 |  |  | $23,227,270 |
Entergy Arkansas | $4,175,929 |  |  | $3,805,958 |
Entergy Louisiana | $10,369,840 |  |  | $9,626,860 |
Entergy Mississippi | $2,430,499 |  |  | $2,134,560 |
Entergy New Orleans | $782,815 |  |  | $743,715 |
Entergy Texas | $2,612,874 |  |  | $2,360,498 |
System Energy | $798,615 |  |  | $743,102 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2021 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,880,901 |  |  | $27,061,171 |
Entergy Arkansas | $3,958,862 |  |  | $4,176,577 |
Entergy Louisiana | $10,914,346 |  |  | $11,492,650 |
Entergy Mississippi | $2,179,989 |  |  | $2,346,230 |
Entergy New Orleans | $788,165 |  |  | $765,538 |
Entergy Texas | $2,354,148 |  |  | $2,483,995 |
System Energy | $741,296 |  |  | $743,040 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.
Entergy Mississippi [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | NOTE 4. 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 June 2027. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% 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 six months ended June 30, 2022 was 1.96% on the drawn portion of the facility. As of June 30, 2022, amounts outstanding and capacity available under the $3.5 billion credit facility are:
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $150 |  | $3 |  | $3,347
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 Entergy Corporation credit facility’s maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of June 30, 2022, Entergy Corporation had $1.398 billion of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2022 was 0.91%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2022 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of June 30, 2022 |  | Letters of Credit Outstanding as of June 30, 2022
Entergy Arkansas |  | April 2023 |  | $25 million (b) |  | 3.19% |  | $— |  | $—
Entergy Arkansas |  | June 2027 |  | $150 million (c) |  | 2.75% |  | $— |  | $—
Entergy Louisiana |  | June 2027 |  | $350 million (c) |  | 2.88% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $45 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $40 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $10 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | July 2024 |  | $150 million |  | 2.42% |  | $100 million |  | $—
Entergy New Orleans |  | June 2024 |  | $25 million (c) |  | 3.29% |  | $— |  | $—
Entergy Texas |  | June 2027 |  | $150 million (c) |  | 2.88% |  | $— |  | $1.1 million
(a)The interest rate is the estimated interest rate as of June 30, 2022 that would have been applied to outstanding borrowings under the facility. (b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d)Borrowings under the short-term Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. 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 an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2022:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of June 30, 2022 (a) (b)
Entergy Arkansas |  | $25 million |  | 0.78% |  | $4.5 million
Entergy Louisiana |  | $125 million |  | 0.78% |  | $70.0 million
Entergy Mississippi |  | $65 million |  | 0.78% |  | $4.3 million
Entergy New Orleans |  | $15 million |  | 1.625% |  | $1.0 million
Entergy Texas |  | $80 million |  | 0.875% |  | $79.6 million
(a)As of June 30, 2022, letters of credit posted with MISO covered financial transmission right exposure of $0.4 million for Entergy Mississippi and $5.3 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights. (b)As of June 30, 2022, in addition to the $4.3 million MISO letters of credit, Entergy Mississippi had $7 million in non-MISO letters of credit outstanding under this facility. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized short-term borrowing limits for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy are effective through October 2023. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following were the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2022 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $200 |  | $—
Entergy New Orleans | $150 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Vermont Yankee Credit Facility (Entergy Corporation) In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $139 million and expires in December 2023. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2022, $139 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2022 was 2.02% on the drawn portion of the facility. See Note 14 to the financial statements in the Form 10-K for discussion of the transfer of Entergy Nuclear Vermont Yankee to NorthStar. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 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 June 30, 2022:
Company |  | Expiration Date |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (a) |  | Amount Outstanding as of June 30, 2022
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2025 |  | $80 |  | 1.55% |  | $12
Entergy Louisiana River Bend VIE |  | June 2025 |  | $105 |  | 1.37% |  | $20
Entergy Louisiana Waterford VIE |  | June 2025 |  | $105 |  | 1.49% |  | $70.4
System Energy VIE |  | June 2025 |  | $120 |  | 1.54% |  | $93.8
(a)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. The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, 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. Each lessee is in compliance with this covenant. The nuclear fuel company variable interest entities had notes payable that were included in debt on the respective balance sheets as of June 30, 2022 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.17% Series M due December 2023 |  | $40 million
Entergy Arkansas VIE |  | 1.84% Series N due July 2026 |  | $90 million
Entergy Louisiana River Bend VIE |  | 2.51% Series V due June 2027 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.22% Series I due December 2023 |  | $20 million
System Energy VIE |  | 2.05% Series K due September 2027 |  | $90 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. Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through October 2023 for issuances by its nuclear fuel company variable interest entities. Debt Issuances and Retirements (Entergy Corporation) In June 2022, Entergy Corporation redeemed $650 million of 4.00% Series senior notes due July 2022. (Entergy Arkansas) In March 2022, Entergy Arkansas issued $200 million of 4.20% Series mortgage bonds due April 2049. Entergy Arkansas used the proceeds for general corporate purposes, including the repayment of borrowings from the Entergy System money pool. (Entergy Louisiana) In December 2021, Entergy Louisiana entered into a term loan credit agreement providing a $1.2 billion unsecured term loan due June 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 1.18%. Entergy Louisiana received the funds in January 2022 and used the proceeds for general corporate purposes, including storm restoration costs related to Hurricane Ida. Entergy Louisiana repaid the full amount of the loan in June 2022. In May 2022, Entergy Louisiana redeemed, prior to maturity, a portion of its 0.62% Series mortgage bonds due November 2023. Entergy Louisiana redeemed $435 million in aggregate principal amount of the bonds, leaving $665 million in aggregate principal amount outstanding. (Entergy Mississippi) In June 2022, Entergy Mississippi entered into a term loan credit agreement providing a $150 million unsecured term loan due December 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The rate set as of June 30, 2022 was 2.47%. Entergy Mississippi used the funds for general corporate purposes. (System Energy) In May 2022, System Energy entered into a term loan credit agreement providing a $50 million term loan due November 2023. The term loan is secured by a series of first mortgage bonds and bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 2.20%. System Energy used the funds for general corporate purposes. Entergy Texas Securitization Bonds In January 2022 the PUCT authorized the issuance of securitization bonds to recover $242.9 million of Entergy Texas’s Hurricane Laura, Hurricane Delta, and Winter Storm Uri restoration costs, plus carrying costs, plus approximately $13.3 million relating to a system restoration regulatory asset related to Hurricane Harvey, plus up-front qualified costs. In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned and consolidated by Entergy Texas, issued $290.85 million of senior secured restoration bonds (securitization bonds), as follows:
| Amount
| (In Thousands)
Senior Secured Restoration Bonds: |
Tranche A-1 (3.051%) due December 2028 | $100,000 |
Tranche A-2 (3.697%) due December 2036 | 190,850 |
Total senior secured restoration bonds | $290,850 |
Although the principal amount of each tranche is not due until the dates given above, Entergy Texas Restoration Funding II expects to make principal payments on the securitization bonds over the next five years in the amounts of $12.3 million for 2022, $17.8 million for 2023, $18.3 million for 2024, $18.8 million for 2025, and $19.4 million for 2026. All of the expected principal payments for 2022-2026 are for Tranche A-1. With the proceeds, Entergy Texas Restoration Funding II purchased from Entergy Texas the transition property, which is the right to recover from customers through a system restoration charge amounts sufficient to service the securitization bonds. Entergy Texas expects to use the proceeds to reduce its outstanding debt. The creditors of Entergy Texas do not have recourse to the assets or revenues of Entergy Texas Restoration Funding II, including the transition property, and the creditors of Entergy Texas Restoration Funding II do not have recourse to the assets or revenues of Entergy Texas. Entergy Texas has no payment obligations to Entergy Texas Restoration Funding II except to remit system restoration charge collections. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2022 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,452,926 |  |  | $23,227,270 |
Entergy Arkansas | $4,175,929 |  |  | $3,805,958 |
Entergy Louisiana | $10,369,840 |  |  | $9,626,860 |
Entergy Mississippi | $2,430,499 |  |  | $2,134,560 |
Entergy New Orleans | $782,815 |  |  | $743,715 |
Entergy Texas | $2,612,874 |  |  | $2,360,498 |
System Energy | $798,615 |  |  | $743,102 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2021 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,880,901 |  |  | $27,061,171 |
Entergy Arkansas | $3,958,862 |  |  | $4,176,577 |
Entergy Louisiana | $10,914,346 |  |  | $11,492,650 |
Entergy Mississippi | $2,179,989 |  |  | $2,346,230 |
Entergy New Orleans | $788,165 |  |  | $765,538 |
Entergy Texas | $2,354,148 |  |  | $2,483,995 |
System Energy | $741,296 |  |  | $743,040 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.
Entergy New Orleans [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | NOTE 4. 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 June 2027. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% 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 six months ended June 30, 2022 was 1.96% on the drawn portion of the facility. As of June 30, 2022, amounts outstanding and capacity available under the $3.5 billion credit facility are:
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $150 |  | $3 |  | $3,347
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 Entergy Corporation credit facility’s maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of June 30, 2022, Entergy Corporation had $1.398 billion of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2022 was 0.91%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2022 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of June 30, 2022 |  | Letters of Credit Outstanding as of June 30, 2022
Entergy Arkansas |  | April 2023 |  | $25 million (b) |  | 3.19% |  | $— |  | $—
Entergy Arkansas |  | June 2027 |  | $150 million (c) |  | 2.75% |  | $— |  | $—
Entergy Louisiana |  | June 2027 |  | $350 million (c) |  | 2.88% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $45 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $40 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $10 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | July 2024 |  | $150 million |  | 2.42% |  | $100 million |  | $—
Entergy New Orleans |  | June 2024 |  | $25 million (c) |  | 3.29% |  | $— |  | $—
Entergy Texas |  | June 2027 |  | $150 million (c) |  | 2.88% |  | $— |  | $1.1 million
(a)The interest rate is the estimated interest rate as of June 30, 2022 that would have been applied to outstanding borrowings under the facility. (b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d)Borrowings under the short-term Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. 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 an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2022:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of June 30, 2022 (a) (b)
Entergy Arkansas |  | $25 million |  | 0.78% |  | $4.5 million
Entergy Louisiana |  | $125 million |  | 0.78% |  | $70.0 million
Entergy Mississippi |  | $65 million |  | 0.78% |  | $4.3 million
Entergy New Orleans |  | $15 million |  | 1.625% |  | $1.0 million
Entergy Texas |  | $80 million |  | 0.875% |  | $79.6 million
(a)As of June 30, 2022, letters of credit posted with MISO covered financial transmission right exposure of $0.4 million for Entergy Mississippi and $5.3 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights. (b)As of June 30, 2022, in addition to the $4.3 million MISO letters of credit, Entergy Mississippi had $7 million in non-MISO letters of credit outstanding under this facility. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized short-term borrowing limits for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy are effective through October 2023. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following were the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2022 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $200 |  | $—
Entergy New Orleans | $150 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Vermont Yankee Credit Facility (Entergy Corporation) In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $139 million and expires in December 2023. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2022, $139 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2022 was 2.02% on the drawn portion of the facility. See Note 14 to the financial statements in the Form 10-K for discussion of the transfer of Entergy Nuclear Vermont Yankee to NorthStar. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 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 June 30, 2022:
Company |  | Expiration Date |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (a) |  | Amount Outstanding as of June 30, 2022
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2025 |  | $80 |  | 1.55% |  | $12
Entergy Louisiana River Bend VIE |  | June 2025 |  | $105 |  | 1.37% |  | $20
Entergy Louisiana Waterford VIE |  | June 2025 |  | $105 |  | 1.49% |  | $70.4
System Energy VIE |  | June 2025 |  | $120 |  | 1.54% |  | $93.8
(a)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. The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, 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. Each lessee is in compliance with this covenant. The nuclear fuel company variable interest entities had notes payable that were included in debt on the respective balance sheets as of June 30, 2022 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.17% Series M due December 2023 |  | $40 million
Entergy Arkansas VIE |  | 1.84% Series N due July 2026 |  | $90 million
Entergy Louisiana River Bend VIE |  | 2.51% Series V due June 2027 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.22% Series I due December 2023 |  | $20 million
System Energy VIE |  | 2.05% Series K due September 2027 |  | $90 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. Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through October 2023 for issuances by its nuclear fuel company variable interest entities. Debt Issuances and Retirements (Entergy Corporation) In June 2022, Entergy Corporation redeemed $650 million of 4.00% Series senior notes due July 2022. (Entergy Arkansas) In March 2022, Entergy Arkansas issued $200 million of 4.20% Series mortgage bonds due April 2049. Entergy Arkansas used the proceeds for general corporate purposes, including the repayment of borrowings from the Entergy System money pool. (Entergy Louisiana) In December 2021, Entergy Louisiana entered into a term loan credit agreement providing a $1.2 billion unsecured term loan due June 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 1.18%. Entergy Louisiana received the funds in January 2022 and used the proceeds for general corporate purposes, including storm restoration costs related to Hurricane Ida. Entergy Louisiana repaid the full amount of the loan in June 2022. In May 2022, Entergy Louisiana redeemed, prior to maturity, a portion of its 0.62% Series mortgage bonds due November 2023. Entergy Louisiana redeemed $435 million in aggregate principal amount of the bonds, leaving $665 million in aggregate principal amount outstanding. (Entergy Mississippi) In June 2022, Entergy Mississippi entered into a term loan credit agreement providing a $150 million unsecured term loan due December 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The rate set as of June 30, 2022 was 2.47%. Entergy Mississippi used the funds for general corporate purposes. (System Energy) In May 2022, System Energy entered into a term loan credit agreement providing a $50 million term loan due November 2023. The term loan is secured by a series of first mortgage bonds and bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 2.20%. System Energy used the funds for general corporate purposes. Entergy Texas Securitization Bonds In January 2022 the PUCT authorized the issuance of securitization bonds to recover $242.9 million of Entergy Texas’s Hurricane Laura, Hurricane Delta, and Winter Storm Uri restoration costs, plus carrying costs, plus approximately $13.3 million relating to a system restoration regulatory asset related to Hurricane Harvey, plus up-front qualified costs. In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned and consolidated by Entergy Texas, issued $290.85 million of senior secured restoration bonds (securitization bonds), as follows:
| Amount
| (In Thousands)
Senior Secured Restoration Bonds: |
Tranche A-1 (3.051%) due December 2028 | $100,000 |
Tranche A-2 (3.697%) due December 2036 | 190,850 |
Total senior secured restoration bonds | $290,850 |
Although the principal amount of each tranche is not due until the dates given above, Entergy Texas Restoration Funding II expects to make principal payments on the securitization bonds over the next five years in the amounts of $12.3 million for 2022, $17.8 million for 2023, $18.3 million for 2024, $18.8 million for 2025, and $19.4 million for 2026. All of the expected principal payments for 2022-2026 are for Tranche A-1. With the proceeds, Entergy Texas Restoration Funding II purchased from Entergy Texas the transition property, which is the right to recover from customers through a system restoration charge amounts sufficient to service the securitization bonds. Entergy Texas expects to use the proceeds to reduce its outstanding debt. The creditors of Entergy Texas do not have recourse to the assets or revenues of Entergy Texas Restoration Funding II, including the transition property, and the creditors of Entergy Texas Restoration Funding II do not have recourse to the assets or revenues of Entergy Texas. Entergy Texas has no payment obligations to Entergy Texas Restoration Funding II except to remit system restoration charge collections. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2022 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,452,926 |  |  | $23,227,270 |
Entergy Arkansas | $4,175,929 |  |  | $3,805,958 |
Entergy Louisiana | $10,369,840 |  |  | $9,626,860 |
Entergy Mississippi | $2,430,499 |  |  | $2,134,560 |
Entergy New Orleans | $782,815 |  |  | $743,715 |
Entergy Texas | $2,612,874 |  |  | $2,360,498 |
System Energy | $798,615 |  |  | $743,102 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2021 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,880,901 |  |  | $27,061,171 |
Entergy Arkansas | $3,958,862 |  |  | $4,176,577 |
Entergy Louisiana | $10,914,346 |  |  | $11,492,650 |
Entergy Mississippi | $2,179,989 |  |  | $2,346,230 |
Entergy New Orleans | $788,165 |  |  | $765,538 |
Entergy Texas | $2,354,148 |  |  | $2,483,995 |
System Energy | $741,296 |  |  | $743,040 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.
Entergy Texas [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | NOTE 4. 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 June 2027. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% 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 six months ended June 30, 2022 was 1.96% on the drawn portion of the facility. As of June 30, 2022, amounts outstanding and capacity available under the $3.5 billion credit facility are:
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $150 |  | $3 |  | $3,347
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 Entergy Corporation credit facility’s maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of June 30, 2022, Entergy Corporation had $1.398 billion of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2022 was 0.91%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2022 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of June 30, 2022 |  | Letters of Credit Outstanding as of June 30, 2022
Entergy Arkansas |  | April 2023 |  | $25 million (b) |  | 3.19% |  | $— |  | $—
Entergy Arkansas |  | June 2027 |  | $150 million (c) |  | 2.75% |  | $— |  | $—
Entergy Louisiana |  | June 2027 |  | $350 million (c) |  | 2.88% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $45 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $40 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $10 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | July 2024 |  | $150 million |  | 2.42% |  | $100 million |  | $—
Entergy New Orleans |  | June 2024 |  | $25 million (c) |  | 3.29% |  | $— |  | $—
Entergy Texas |  | June 2027 |  | $150 million (c) |  | 2.88% |  | $— |  | $1.1 million
(a)The interest rate is the estimated interest rate as of June 30, 2022 that would have been applied to outstanding borrowings under the facility. (b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d)Borrowings under the short-term Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. 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 an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2022:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of June 30, 2022 (a) (b)
Entergy Arkansas |  | $25 million |  | 0.78% |  | $4.5 million
Entergy Louisiana |  | $125 million |  | 0.78% |  | $70.0 million
Entergy Mississippi |  | $65 million |  | 0.78% |  | $4.3 million
Entergy New Orleans |  | $15 million |  | 1.625% |  | $1.0 million
Entergy Texas |  | $80 million |  | 0.875% |  | $79.6 million
(a)As of June 30, 2022, letters of credit posted with MISO covered financial transmission right exposure of $0.4 million for Entergy Mississippi and $5.3 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights. (b)As of June 30, 2022, in addition to the $4.3 million MISO letters of credit, Entergy Mississippi had $7 million in non-MISO letters of credit outstanding under this facility. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized short-term borrowing limits for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy are effective through October 2023. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following were the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2022 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $200 |  | $—
Entergy New Orleans | $150 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Vermont Yankee Credit Facility (Entergy Corporation) In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $139 million and expires in December 2023. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2022, $139 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2022 was 2.02% on the drawn portion of the facility. See Note 14 to the financial statements in the Form 10-K for discussion of the transfer of Entergy Nuclear Vermont Yankee to NorthStar. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 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 June 30, 2022:
Company |  | Expiration Date |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (a) |  | Amount Outstanding as of June 30, 2022
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2025 |  | $80 |  | 1.55% |  | $12
Entergy Louisiana River Bend VIE |  | June 2025 |  | $105 |  | 1.37% |  | $20
Entergy Louisiana Waterford VIE |  | June 2025 |  | $105 |  | 1.49% |  | $70.4
System Energy VIE |  | June 2025 |  | $120 |  | 1.54% |  | $93.8
(a)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. The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, 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. Each lessee is in compliance with this covenant. The nuclear fuel company variable interest entities had notes payable that were included in debt on the respective balance sheets as of June 30, 2022 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.17% Series M due December 2023 |  | $40 million
Entergy Arkansas VIE |  | 1.84% Series N due July 2026 |  | $90 million
Entergy Louisiana River Bend VIE |  | 2.51% Series V due June 2027 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.22% Series I due December 2023 |  | $20 million
System Energy VIE |  | 2.05% Series K due September 2027 |  | $90 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. Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through October 2023 for issuances by its nuclear fuel company variable interest entities. Debt Issuances and Retirements (Entergy Corporation) In June 2022, Entergy Corporation redeemed $650 million of 4.00% Series senior notes due July 2022. (Entergy Arkansas) In March 2022, Entergy Arkansas issued $200 million of 4.20% Series mortgage bonds due April 2049. Entergy Arkansas used the proceeds for general corporate purposes, including the repayment of borrowings from the Entergy System money pool. (Entergy Louisiana) In December 2021, Entergy Louisiana entered into a term loan credit agreement providing a $1.2 billion unsecured term loan due June 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 1.18%. Entergy Louisiana received the funds in January 2022 and used the proceeds for general corporate purposes, including storm restoration costs related to Hurricane Ida. Entergy Louisiana repaid the full amount of the loan in June 2022. In May 2022, Entergy Louisiana redeemed, prior to maturity, a portion of its 0.62% Series mortgage bonds due November 2023. Entergy Louisiana redeemed $435 million in aggregate principal amount of the bonds, leaving $665 million in aggregate principal amount outstanding. (Entergy Mississippi) In June 2022, Entergy Mississippi entered into a term loan credit agreement providing a $150 million unsecured term loan due December 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The rate set as of June 30, 2022 was 2.47%. Entergy Mississippi used the funds for general corporate purposes. (System Energy) In May 2022, System Energy entered into a term loan credit agreement providing a $50 million term loan due November 2023. The term loan is secured by a series of first mortgage bonds and bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 2.20%. System Energy used the funds for general corporate purposes. Entergy Texas Securitization Bonds In January 2022 the PUCT authorized the issuance of securitization bonds to recover $242.9 million of Entergy Texas’s Hurricane Laura, Hurricane Delta, and Winter Storm Uri restoration costs, plus carrying costs, plus approximately $13.3 million relating to a system restoration regulatory asset related to Hurricane Harvey, plus up-front qualified costs. In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned and consolidated by Entergy Texas, issued $290.85 million of senior secured restoration bonds (securitization bonds), as follows:
| Amount
| (In Thousands)
Senior Secured Restoration Bonds: |
Tranche A-1 (3.051%) due December 2028 | $100,000 |
Tranche A-2 (3.697%) due December 2036 | 190,850 |
Total senior secured restoration bonds | $290,850 |
Although the principal amount of each tranche is not due until the dates given above, Entergy Texas Restoration Funding II expects to make principal payments on the securitization bonds over the next five years in the amounts of $12.3 million for 2022, $17.8 million for 2023, $18.3 million for 2024, $18.8 million for 2025, and $19.4 million for 2026. All of the expected principal payments for 2022-2026 are for Tranche A-1. With the proceeds, Entergy Texas Restoration Funding II purchased from Entergy Texas the transition property, which is the right to recover from customers through a system restoration charge amounts sufficient to service the securitization bonds. Entergy Texas expects to use the proceeds to reduce its outstanding debt. The creditors of Entergy Texas do not have recourse to the assets or revenues of Entergy Texas Restoration Funding II, including the transition property, and the creditors of Entergy Texas Restoration Funding II do not have recourse to the assets or revenues of Entergy Texas. Entergy Texas has no payment obligations to Entergy Texas Restoration Funding II except to remit system restoration charge collections. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2022 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,452,926 |  |  | $23,227,270 |
Entergy Arkansas | $4,175,929 |  |  | $3,805,958 |
Entergy Louisiana | $10,369,840 |  |  | $9,626,860 |
Entergy Mississippi | $2,430,499 |  |  | $2,134,560 |
Entergy New Orleans | $782,815 |  |  | $743,715 |
Entergy Texas | $2,612,874 |  |  | $2,360,498 |
System Energy | $798,615 |  |  | $743,102 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2021 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,880,901 |  |  | $27,061,171 |
Entergy Arkansas | $3,958,862 |  |  | $4,176,577 |
Entergy Louisiana | $10,914,346 |  |  | $11,492,650 |
Entergy Mississippi | $2,179,989 |  |  | $2,346,230 |
Entergy New Orleans | $788,165 |  |  | $765,538 |
Entergy Texas | $2,354,148 |  |  | $2,483,995 |
System Energy | $741,296 |  |  | $743,040 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.
System Energy [Member] |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | NOTE 4. 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 June 2027. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% 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 six months ended June 30, 2022 was 1.96% on the drawn portion of the facility. As of June 30, 2022, amounts outstanding and capacity available under the $3.5 billion credit facility are:
Capacity |  | Borrowings |  | Letters of Credit |  | Capacity Available
(In Millions)
$3,500 |  | $150 |  | $3 |  | $3,347
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 Entergy Corporation credit facility’s maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of June 30, 2022, Entergy Corporation had $1.398 billion of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2022 was 0.91%. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2022 as follows:
Company |  | Expiration Date |  | Amount of Facility |  | Interest Rate (a) |  | Amount Drawn as of June 30, 2022 |  | Letters of Credit Outstanding as of June 30, 2022
Entergy Arkansas |  | April 2023 |  | $25 million (b) |  | 3.19% |  | $— |  | $—
Entergy Arkansas |  | June 2027 |  | $150 million (c) |  | 2.75% |  | $— |  | $—
Entergy Louisiana |  | June 2027 |  | $350 million (c) |  | 2.88% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $45 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $40 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | April 2023 |  | $10 million (d) |  | 3.13% |  | $— |  | $—
Entergy Mississippi |  | July 2024 |  | $150 million |  | 2.42% |  | $100 million |  | $—
Entergy New Orleans |  | June 2024 |  | $25 million (c) |  | 3.29% |  | $— |  | $—
Entergy Texas |  | June 2027 |  | $150 million (c) |  | 2.88% |  | $— |  | $1.1 million
(a)The interest rate is the estimated interest rate as of June 30, 2022 that would have been applied to outstanding borrowings under the facility. (b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d)Borrowings under the short-term Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. 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 an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2022:
Company |  | Amount of Uncommitted Facility |  | Letter of Credit Fee |  | Letters of Credit Issued as of June 30, 2022 (a) (b)
Entergy Arkansas |  | $25 million |  | 0.78% |  | $4.5 million
Entergy Louisiana |  | $125 million |  | 0.78% |  | $70.0 million
Entergy Mississippi |  | $65 million |  | 0.78% |  | $4.3 million
Entergy New Orleans |  | $15 million |  | 1.625% |  | $1.0 million
Entergy Texas |  | $80 million |  | 0.875% |  | $79.6 million
(a)As of June 30, 2022, letters of credit posted with MISO covered financial transmission right exposure of $0.4 million for Entergy Mississippi and $5.3 million for Entergy Texas. See Note 8 to the financial statements herein for discussion of financial transmission rights. (b)As of June 30, 2022, in addition to the $4.3 million MISO letters of credit, Entergy Mississippi had $7 million in non-MISO letters of credit outstanding under this facility. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized short-term borrowing limits for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy are effective through October 2023. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following were the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2022 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized |  | Borrowings
| (In Millions)
Entergy Arkansas | $250 |  | $—
Entergy Louisiana | $450 |  | $—
Entergy Mississippi | $200 |  | $—
Entergy New Orleans | $150 |  | $—
Entergy Texas | $200 |  | $—
System Energy | $200 |  | $—
Vermont Yankee Credit Facility (Entergy Corporation) In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $139 million and expires in December 2023. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2022, $139 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2022 was 2.02% on the drawn portion of the facility. See Note 14 to the financial statements in the Form 10-K for discussion of the transfer of Entergy Nuclear Vermont Yankee to NorthStar. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 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 June 30, 2022:
Company |  | Expiration Date |  | Amount of Facility |  | Weighted Average Interest Rate on Borrowings (a) |  | Amount Outstanding as of June 30, 2022
|  |  |  | (Dollars in Millions)
Entergy Arkansas VIE |  | June 2025 |  | $80 |  | 1.55% |  | $12
Entergy Louisiana River Bend VIE |  | June 2025 |  | $105 |  | 1.37% |  | $20
Entergy Louisiana Waterford VIE |  | June 2025 |  | $105 |  | 1.49% |  | $70.4
System Energy VIE |  | June 2025 |  | $120 |  | 1.54% |  | $93.8
(a)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. The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, 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. Each lessee is in compliance with this covenant. The nuclear fuel company variable interest entities had notes payable that were included in debt on the respective balance sheets as of June 30, 2022 as follows:
Company |  | Description |  | Amount
Entergy Arkansas VIE |  | 3.17% Series M due December 2023 |  | $40 million
Entergy Arkansas VIE |  | 1.84% Series N due July 2026 |  | $90 million
Entergy Louisiana River Bend VIE |  | 2.51% Series V due June 2027 |  | $70 million
Entergy Louisiana Waterford VIE |  | 3.22% Series I due December 2023 |  | $20 million
System Energy VIE |  | 2.05% Series K due September 2027 |  | $90 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. Entergy Arkansas, Entergy Louisiana, and System Energy each has obtained financing authorization from the FERC that extends through October 2023 for issuances by its nuclear fuel company variable interest entities. Debt Issuances and Retirements (Entergy Corporation) In June 2022, Entergy Corporation redeemed $650 million of 4.00% Series senior notes due July 2022. (Entergy Arkansas) In March 2022, Entergy Arkansas issued $200 million of 4.20% Series mortgage bonds due April 2049. Entergy Arkansas used the proceeds for general corporate purposes, including the repayment of borrowings from the Entergy System money pool. (Entergy Louisiana) In December 2021, Entergy Louisiana entered into a term loan credit agreement providing a $1.2 billion unsecured term loan due June 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 1.18%. Entergy Louisiana received the funds in January 2022 and used the proceeds for general corporate purposes, including storm restoration costs related to Hurricane Ida. Entergy Louisiana repaid the full amount of the loan in June 2022. In May 2022, Entergy Louisiana redeemed, prior to maturity, a portion of its 0.62% Series mortgage bonds due November 2023. Entergy Louisiana redeemed $435 million in aggregate principal amount of the bonds, leaving $665 million in aggregate principal amount outstanding. (Entergy Mississippi) In June 2022, Entergy Mississippi entered into a term loan credit agreement providing a $150 million unsecured term loan due December 2023. The term loan bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The rate set as of June 30, 2022 was 2.47%. Entergy Mississippi used the funds for general corporate purposes. (System Energy) In May 2022, System Energy entered into a term loan credit agreement providing a $50 million term loan due November 2023. The term loan is secured by a series of first mortgage bonds and bears interest at a variable interest rate based on an adjusted term Secured Overnight Financing Rate plus the applicable margin. The weighted average interest rate for the six months ended June 30, 2022 was 2.20%. System Energy used the funds for general corporate purposes. Entergy Texas Securitization Bonds In January 2022 the PUCT authorized the issuance of securitization bonds to recover $242.9 million of Entergy Texas’s Hurricane Laura, Hurricane Delta, and Winter Storm Uri restoration costs, plus carrying costs, plus approximately $13.3 million relating to a system restoration regulatory asset related to Hurricane Harvey, plus up-front qualified costs. In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned and consolidated by Entergy Texas, issued $290.85 million of senior secured restoration bonds (securitization bonds), as follows:
| Amount
| (In Thousands)
Senior Secured Restoration Bonds: |
Tranche A-1 (3.051%) due December 2028 | $100,000 |
Tranche A-2 (3.697%) due December 2036 | 190,850 |
Total senior secured restoration bonds | $290,850 |
Although the principal amount of each tranche is not due until the dates given above, Entergy Texas Restoration Funding II expects to make principal payments on the securitization bonds over the next five years in the amounts of $12.3 million for 2022, $17.8 million for 2023, $18.3 million for 2024, $18.8 million for 2025, and $19.4 million for 2026. All of the expected principal payments for 2022-2026 are for Tranche A-1. With the proceeds, Entergy Texas Restoration Funding II purchased from Entergy Texas the transition property, which is the right to recover from customers through a system restoration charge amounts sufficient to service the securitization bonds. Entergy Texas expects to use the proceeds to reduce its outstanding debt. The creditors of Entergy Texas do not have recourse to the assets or revenues of Entergy Texas Restoration Funding II, including the transition property, and the creditors of Entergy Texas Restoration Funding II do not have recourse to the assets or revenues of Entergy Texas. Entergy Texas has no payment obligations to Entergy Texas Restoration Funding II except to remit system restoration charge collections. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2022 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,452,926 |  |  | $23,227,270 |
Entergy Arkansas | $4,175,929 |  |  | $3,805,958 |
Entergy Louisiana | $10,369,840 |  |  | $9,626,860 |
Entergy Mississippi | $2,430,499 |  |  | $2,134,560 |
Entergy New Orleans | $782,815 |  |  | $743,715 |
Entergy Texas | $2,612,874 |  |  | $2,360,498 |
System Energy | $798,615 |  |  | $743,102 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2021 were as follows:
| Book Value of Long-Term Debt |  | Fair Value of Long-Term Debt (a)
| (In Thousands)
Entergy | $25,880,901 |  |  | $27,061,171 |
Entergy Arkansas | $3,958,862 |  |  | $4,176,577 |
Entergy Louisiana | $10,914,346 |  |  | $11,492,650 |
Entergy Mississippi | $2,179,989 |  |  | $2,346,230 |
Entergy New Orleans | $788,165 |  |  | $765,538 |
Entergy Texas | $2,354,148 |  |  | $2,483,995 |
System Energy | $741,296 |  |  | $743,040 |
(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.

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