?OH E 6 I 1 p. GI1 t ARK. PUBLIC SERV. COHM DOCKET DESIGNATOR: TF LAST RATE CASE DOCKET:
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1 ARK. PUBLIC SERV. COHM Arkansas Public Service Commission Tariff ("TF") Docket Summary Cover Sheet Must be filed with each new TF docket fiied at the Commission?OH E 6 I 1 p GI1 t D DOCKET DESIGNATOR: TF LAST RATE CASE DOCKET: U Entcrm Arkansas. he. Ms. Tucker Rancy. EntwpvSmiccs. Inc W. Caairol Ave., P. 0. Box 551. Little Rock. AR fax Sl4, tranens?enterm.com 1 Pursuant to Rule 2.03@}, of the ComrnIssion's Roles of Pracffce and Procedurr, piease provide name, addrcss, phone, fax, of at least one person, but not more than two, to appear on tbe Service LIst for thls docket Ms. Tucker Rancv. Enterpv ScSVices. Inc W. CBpitOl Avc.. P. 0. Box 551. Little Rock. AR , fax , bancfientcrnv.com: Steven K. Strickland. Enterw Arkansas. Inc W. CanitoI Avc.. P. 0. Box 551. Little Rock. AR fax SO S+ ssttic~enttrrv..earn I. Number of customers by class affected by this tariff change: Res. 367,729 Corn'l. 61,321 Ind'l Govt Company's current authorlred retail revenue requirement: $957,249, Esthated annual retall revenue Impact If proposal Is approved, both in dollars and as a percentage of current retal1 revenue reqdrement: NA: fillns is procedural. 4. Estimated monfhiy Impact on an average reddentiat customer In both dollars and percentage Increase: NA: filins Is procedural. 5. Proposed efhctive date: Effective uwn ammval. Form wmpleied by: Tucker Raney Date: Zl17ili Representing: Entersy Arkansas, Inc.
2 Entergy Arkansas. tnc. 425 West Capitol AvenuQ P. 0.00% 551 Urtte Rock. AR Tal Fax 50f Steven K. Strlckland vice Presidenl Regulalory Affairs February 17, 201 'I Ms. Jan Sanders, Secretary Arkansas Public Service Commission P. 0. Box 400 Little Rock, AR Re: Docket No TF In the Matter of Entergy Arkansas, tnc.'s Annual Update of Rate Schedule No. 39 Municipal Franchise Adjustment Rider Attachment A Dear Ms. Sanders: In accordance with the provisions of Arkansas Public Service Commission (APSC) Order No. 8 in Docket No. U-3013, Entergy Arkansas, lnc. (EAI), hereby requests to establish this Docket for the purpose of filing the annual update to Rate Schedule No. 39, Municipal Franchise Adjustment Rider (Rider MFA) Attachment A to reflect the currently effective municipal franchise fee rates and billing factors. In addition, EA1 requests APSC approval of the proposed revision to Rider MFA to include language describing the annual update process. Finally, EA1 submits for informational purposes the revised Attachment A to Rider MFA reflecting the municipal franchise billing factors that went into effect with the first billing cycle February 201 i. In Docket No , APSC General Staff (Staff) witness Elana Davis recommended in her direct testimony that EA1 revise Rider MFA to address the provisions of Order No. 8 in Docket No. U-3013 which requires that utilities include in their municipal tax tariffs the name of the municipality and the municipal franchise fee rate presently applied to each customer's bill. EA1 included in its compliance tariffs a revision to Rider MFA to comply with Staffs recommendation. Specifically, EAI added an Attachment A to Rider MFA which provides the list of municipalities in EAl's service territory with which the Company has franchise agreements and to which the Company is required to remit said fees in accordance with their individual city ordinances and franchise agreements and the then current franchise fee rates and billing factors. EAI's compliance tariffs were approved by the Commission on June 23,2010.
3 Ms. Jan Sanders February 17,201 1 Page 2 Order No. 8 further specifies that the utility is required to update the tariff when necessary. Therefore, EA1 proposes to revise Rider MFA to add language to 39.3 to describe the informational filings to update Attachment A to reflect the currently effective franchise fee rates and billing factors, Attached is the Direct Testimony of James W. Berkau, discussing in more detail the proposed process by which EA1 will make an informational filing of Attachment A to Rider MFA and the proposed revisions to Rider MFA and Attachment A. The revised Rider MFA and Attachment A are included as EA1 Exhibit JWB-1 to Mr. Berkau s direct testimony. Should you have any questions concerning this filing, please call me at (501) or Susan Davidson at (501) Sincerely, Is/ Steven K. Strickland SSlsd C: All Parties of Record
4 ARK. PUBLIC SERV. C O W BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION SECRETARY OF CGMa1 FEB I7 P 12: 48 FILED IN THE MATTER OF ENTERGY 1 ARKANSAS, INC.'S ANNUAL UPDATE OF RATE SCHEDULE NO. 39 ) 1 DOCKET NO. I1-013-Tf MUNICIPAL FRANCHISE ADJUSTMENT RIDER AnACHMENT A 1 1 DIRECT TESTIMONY OF JAMES W. BERKAU MANAGER, RATE ADMINISTRATION ENTERGY SERVICES, INC. ON BEHALF OF ENTERGY ARKANSAS, INC. FEBRUARY 17, 201 I
5 Energy Arkansas, Inc. Direct Testimony of James W. Berkau Oocket No. 11*013-TF a I , Q. A. Q. A. Q. A. BACKGROUND AND INTRODUCTION PLEASE STATE YOUR NAME, BUSINESS ADDRESS, EMPLOYER AND JOB TITLE. My name is James W. Berkau. 1 am employed by Entergy Services, Inc. ( ESI ) as Manager, Rate Administration. My business address is 425 West Capitol Avenue, Little Rock, Arkansas ON WHOSE BEHALF ARE YOU TESTIFYING? 1 am testifying on behalf of Entergy Arkansas, Inc. ( EA] or the Corn pa n y ). PLEASE STATE YOUR EDUCATION, PROFESSIONAL AND WORK EXPERIENCE. 1 received a Bachelor of Science Degree in Mathematics with honors from the University of Central Arkansas in I worked continuously for Arkansas Power & Light Company ( AP&L ), the predecessor in name of EAI, from that time until December My entire time with AWL was spent in the Rate Department, where I had various responsibilities including developing retail rate cases before the APSC and wholesale rate cases before!he Federaf Energy Regulatory Commission, I St is a subsidiary of Entergy Corporation that provides technical and administrative services lo the Entergy Operating Cornpanles. The Entergy Operating Companies inctude EA[; Entergy Gulf States Louisiana, L.L.C.; Entergy Louisiana, LLC: Entergy Mbsissippi, Inc.; Entergy New Orleans. Inc.; and Entergy Texas, Inc. -2-
6 Energy Arkansas, Inc. Direcl Testimony of James W. Berkau Docket No TF administeringlbitling municipal and cooperative wholesale customer contracts, administering AP&L's monthly fuel adjustment process, and administering AP8L's franchise tax applications for more than 300 Arkansas municipalities. From December 1992 to the present, I have been employed by ESI, My responsibilities have included evaluation of customer-specific electric service alternatives, development of pricing products to address such supply alternatives, and the support of rate case activities for the Entergy Operating Companies. I was recently promoted to Manager of Rate Administration for Est. 10 ti Q. t2 A PLEASE DESCRIBE YOUR CURRENT RESPONSIBILITIES. My current responsibilities include overseeing the development, interpretation and application of retail rates and riders, supporting rate case activities, and preparation of certain periodic regulatory reports for the Entergy Operating Companies Q A HAVE YOU PREVIOUSLY TESTIFIED BEFORE A REGUIATORY COMMISSION? Yes. 1 presented testimony in Docket No, P, which addressed a special rate contract request for Halstead Metals; in Docket No TF for the development of an experimental residential time-of-use rate; in Docket No TF regarding revisions to EAl's standby service tariff; in Docket No U regarding the development of EAl's Storm -3-
7 Energy Arkansas, Inc. Direct Testimony of James W. Berkau Docket No TF 1 2 Recovery Charges Rider; and in Docket No. IO-046-P regarding EAl's contract with the Little Rock Air Force Base. 3 4 Q. 5 A to 11 WHAT IS THE PURPOSE OF YOUR TESTIMONY? The purpose of my testimony is to propose a revision to the Municipal Franchise Adjustment Rider ("Rider MFA") and to describe the proposed process by which EA1 will make an informational filing of Attachment A to Rider MFA containing the currently effective franchise fee rates and billing factors. In addition, 1 will provide the annual update to Attachment A of Rider MFA reflecting billing factors effective with the first billing cycle of February 201 I II. 14 Q. 15 A RIDER MFA PROPOSED CHANGES WHAT IS RIDER MFA? Rider MFA is the EA! rafe schedule rider that implements the Commission's Order No. 8 in Docket No. U-3013, dated January 16, Pursuant to that order, EA1 bills the franchise fees defined by a municipality's franchise agreement with the Company to the customers within the corporate limits of such municipality in the same manner by which the fee was determined Q. 23 A. DO ALL FRANCHISE AGREEMENTS OPERATE THE SAME? No. EA1 works with two basic types of franchise agreements. The first -4-
8 Energy Arkansas, tnc. Oirect Testimony of James W. Berkau Docket NO TF type is the Standard form. This form has been in place for decades and is used by 237 of EAl s current 310 municipalities. Under a Standard agreement EA1 pays the municipality in the current year the stated percentage of the prior year s collected residential and commercial customers revenues. EA1 calculates a franchise billing factor for each municipality to recover from the applicable customers in the current year the amount being paid to the municipality in that year, thus complying with the terms of Order No. 8 in Docket No, U IO Q A. WHAT OTHER WPE OF FRANCHISE AGREEMENT DOES EA[ ADMINISTER? The second type of franchise agreement is referred to as the Current 13 form. There are 73 such agreements that all require payments of I collected franchise amounts from either the last month or the last calendar quarter, These agreements are worded such that EA1 bills the stated franchise fee percentage to the defined customers in the municipalities and then pays to the city the collections of those billed amounts. The billing factors for these municipalities remain the same from year to year and would only change on a revised Attachment A if mandated by a revised franchise agreement, 21
9 Energy Arkansas, Inc. Direct Testimony of James W. Berkau Docket NO TF 1 Q A I PLEASE DESCRIBE THE PROCESS EMPLOYED BY EA1 FOR BILLING FRANCHISE FEES TO THE APPROPRIATE CUSTOMERS FOR A STANDARD AGREEMENT MUNICIPALITY. Annually in January, EAI summarizes the prior year s revenues collected for alf standard agreement municipalities according to the revenue class definitions established in their respective agreements. The individual agreement franchise fee rates are applied to those collections to establish the fees payable to each municipality in the current year. A calculation is made to compare the amount of franchise fees coflected from customers in each municipality in the prior year to the amount of franchise fees paid to each municipality in the prior year. This overlunder value adjusts the amount that needs to be billed in the current year to recover franchise payments made to the municipality. The adjusted amounts are then divided by estimated collections from the municipality s appropriate 15 customers to develop individual billing factors to recover each municipality s franchise fees from those customers. Historically, these new billing factors have been implemented for February billings and remain in effect through the following January, However in the future, to allow more time for filing the revised Attachment A, new billing factors will be implemented for March billings and wilt remain in effect through the following February Q. PLEASE DESCRIBE THE PROPOSED CHANGE TO RIDER MFA. -6-
10 Energy Arkansas, Inc. Direct Testimony of James W. Berkau Docket No. I I-013-TF a 9 10 A, An addition is proposed t Section 39.3 of Rider MFA to describe when EA1 wilt make informational filings of an updated Attachment A. The currently approved Rider MFA does not address the timing of revisions to the Rider s Attachment A. The additional language is being proposed to reflect the need to update Attachment A on the annual cycle of billing factor determination, or as otherwise necessary to reflect new or modified municipal franchise agreements. In addition, Rider MFA Attachment A has been updated to reflect the billing factors implemented effective with the first billing cycle of February The revised Rider MFA and Attachment A are attached as EA1 Exhibit JWB-1, Q. A. Q. HOW DOES EA1 PROPOSE TO UPDATE ATTACHMENT A? EA1 proposes to provide a revised Attachment A to Rider MFA as an annual report in this Docket and at such other times as necessary to reflect any new or modified franchise agreements. Annual revisions would be provided on or about February 15 of each year and would set out the current franchise fee rate and the current billing factor for each municipality. DOES THIS CONCLUDE YOUR DIRECT TESTIMONY? 21 A. Yes.
11 VERI FlC AT ION STAT OF ARKANSAS COUNlY OF PUIASKI and appeared, NOW BEFORE ME, the undersigned authority, personally came JAMES W. BERKAU who, after being duly sworn by me, did depose and say: That the above and foregoing is his sworn Direct Testimony in APSC Docket No. II TF and that he knows the contents thereof, that the same are true as stated, except as to matters and things, if any, stated on information and belief, and that as to those matters and things, he verily believes them to be true. N 0 TARY C E RT I F 1 C AT1 0 N Subscribed and sworn to before me, a Notary Public, on this & day of February, MY Commission expires: ("-""-uv2 Notary Public Notary Public
12 CERTIFICATE OF SERVICE 1, Steven K. Strickland, do hereby certify that a copy of the foregoing has been served upon all parties of record by forwarding the same by electronic mail andlor first class mail, postage prepaid this 17th day of February 201 I. Is/ Steven K. Strickland Steven K. Strickland
13 BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION IN THE MATTER OF ENTERGY 1 ARKANSAS, INC.3 ANNUAL UPDATE ) OF RATE SCHEDULE NO MUNICIPAL FRANCHISE ADJUSTMENT ) RIDER AlTACHMENT A 1 DOCKET NO *TF EA1 EXHIBIT JWB-1 UPDATED RIDER MFA AND ATTACHMENT A
14 ARK. PU8LIC SERV. C O W ARKANSAS PUBLIC SERVICE COMMISSION 3'd Revised Sheet No Schedule Sheet 1 of 8 Inctudlng Attachment Replacing: 2" Revised Sheet No Entergy Arkansas, Inc. Name 01 Company Kind ol Service: Eledric Part 111. Rate Schedule No. 39 Class of Service: Docket No.: Order No.: Effective: SECRETARY OF rom?f FILED Title: Municlpal Franchise Adjustment Rlder (MFA) MUNICIPAL FRANCHISE ADJUSTMENT RIDER APPLICABLE SERVICE AREA PSC hte f.&thdiy Appficable Io all customers located within Ihe corporale limits of a municipality that imposes a franchise tax or fee upon the Entergy Arkansas, Inc. reai" or the 'Company-) and which are served under rate schedules subject to the jurisdiction of the Arkansas Public Service Commission VAPSC") BILLING Billings under said rate schedules to customers located within the municlpal limits of a municlpalily imposing a franchise tax or fee upon the Company will be increased by an amounl sufficient to compensate Company for any charges (including, but not limited to. licenses, lees, charges, impositions or taxes of any kind other lhan special millage taxes or general taxes applicable to all citizens and taxpayers) levied or imposed by any municipality on or against the Company as provided in the standard Franchise Agreemenl between Company and satd municipallty or in special ordinances passed by said municipality. Any such amounts levied or Imposed by a municipality shall be bllled lo customers within the corporate limits of said munlclpality in the manner in whlch the lax or fee imposed on the Company is determined in accordance with Order No the APSC under Docket No. U-3013 daled January 6, TOWN /CITY ORDINANCE RATES AND BILLING FACTORS The franchlse rates contained in each ordinance and current billing factors lor each town or city from which EA1 has obtained a Municipal Franchise Agreement are shown in Attachment A to ths Rider. Attachment A, as revised, will be provided lo the APSC annually on or about February 15, and as othenvtse necessary to reflect new or modilied Municipal franchlse Agreements OTHER PROVlS[ONS Except as modified herein, all terms and conditions of Ihe rate schedules applicable within any municipality and the applicable riders remain unchanged and shall apply.
15 ARK. PUBlfC SEW. CTtMP TFCRETAAY OF Docket No.: Order No. : Effeclive: Attachment Sheel 1 of 7 Schedule Sheet 2 of 8 Attachment A F I L E bunicipal Franchise Adjustment Rider (MFA) Table of Town I City Ordinance Rates and Current Billing Factors Town I City ALEXANDER ALICIA ALLPORT ALMY RA ALPENA ALTHEIMER AMITY ANTHONWI LLE ANTOINE ARKADELPHIA ARKANSAS CITY ASH FLAT ATKINS AUBREY AUGUSTA BALD KNOB BASSETT BATESVILLE BAUXITE BAY BEARDEN BEEBE BELLEFONTE BELLEVILLE + 8ENTON 6 ERG M A N BERRWILLE BIG FLAT BIGGERS BI ROSONG BISCOE BLACK OAK BLACK ROCK BUCK SPRING BLUFF CITY BLYTH EVlLLE BONO BRAOFORD BRINKLEY BRYANT BUCKNER BULL SHOALS BURDETTE CAEOT CADDO VALLEY CALICO ROCK CALlON Ordinance Rate - % 4.00% 4.25'% 3.50% 0.00% 0.00% 4,25% 5.20% Billing Factor - % % % % % % % % % % % Yo % % % % % % % % % % % % % ? % % % % % % % % %
16 2011 FE8 I 7 P 12: 4 q Docket No.: Order No.: Effeclive: all1 1 Attachment Sheel 2 of 7 Schedule Sheel 3 of 8 Allachrnent A Municipal Franchise Adjustment Rlder (MFA) Town I City Ordinance Rates and Current Bitllng Factors Town I City CAMDEN CAMMACK VILLAGE CAMPBELL STAT 1 ON CARAWAY CARLISLE CARTHAGE CASH CAVE CITY CflEROKEE VILLAGE CHERRY VALLEY CHID ESTER CLARENDON CIARKEDALE COLLEGE CITY COLT CORINTH CORNING COTTER COTTON PLANT COY CRAWFORDSVILLE CROSSETT CUSHMAN DANVILLE DARDAN ELLE DATTO DELIGHT DELL DERMOIT DES ARC DEVALLS BLUFF DEWIU DIAMOND CITY DIU DOVER DUMAS OYESS EARLE EDMONSON EL OORADO ELAINE EM E I3 S 0 N EMMET ENGLAND ENOtA ETOWAH EUDORA Ordinance Rate - % 5.O 0% 0.00% 6.00% 425% 4,2S% BiIling Factor - Yo 4.2: 0 I Ye % % % To % % 4.o 227% % % % Yo Yo % % % % % % % % % % % % % % % % % % % % % % % % %
17 Docket No.: Order No.: Etiective: Attachment Sheet 3 of 7 Scheduk Sheet FILED Attachment A Municipal Franchise Adjustment Rider {MFA) Table of Town I City Ordinance Rates and Current Billing Factors 2011 FE8 11 p 12: 49 Town I Cily EVERTON FARGO FELSENTHAL FIFTY SIX FISHER FLIPPIN FORDYCE FORREST CITY FOUNTAIN HILL FOUNTAIN LAKE FRIENDSHIP GARLANO GARNER GASSVILLE GEORGETOWN GILBERT GILLETT GILMORE GLENWOOD GOSNELL GOULD GRAOY GREEN FOREST GREENBRIER GREENWAY GAl FFlTHVlLLE GRLIBBS GUlON GURDON HAM8URG HARDY HARRISBURG HARRISON HASKELL HAVANA HAZEN HEBER SPRINGS HECTOR HELENAW ESTH LENA HERMITAGE HICKORY RIDGE HlGGlNSON HIGHLAND HOLLY GROVE HORSESHOE LAKE HOT SPRINGS Ordinance Rate % 0.00% 0.00% Billing Factor - % % % % % % % % % 3.9a4we % % O.OI100% % % % % % % % 3.a899vO % % % Yo % 4,1707% % % ~~ % % % % 4. a 573% % %
18 ARK. PUBLIC SERV. COW Docket No.: Order No.: Eifective: 2/111 1 Attachment Sheet 4 of 7 Schedule Sheet Attachment A Municipal Franchise Adjustment Rider (MFA) Table of Town I City Ordinance Aales and Curren! Billing Faclors Town I City HOXIE HUGHES HUMNOKE HUMPHREY HUNTER HUITIG IMEODEN JACKSONVILLE JENNEITE JERICHO JEROME JOINER JUDSONIA JUNCTION CITY KElSER KENSElT KEO KINGSLAND KNOBEL LAGRANGE LAKE CITY LAKE VIEW LAKE VlLtAGE LEACHVILLE LEAD HILL LEOLA LEPANTO LESLIE LEWISVILLE LEXA 1ITTLE ROCK LONDON LONOKE LONSDALE LQUANN LUXORA MADISON MAGNESS MAGNET COVE MAGNOLIA MA LV E R N MAMMOTH SPRING MANU MARIANNA MARIE Ordinance Rate - % 3.00% 4,25% 5.20% 4.25Vo 0.00% Billing Factor - % % % % % % % % % % 3.8a3w % % % % % % % % % % % % % % % % % % % * % % % %
19 ARK. PUBLIC SERV. Cmr ' Dacke t No.: Order No.: ' Effeciive: I Attachmenl Sheet 5 of 7 Schedule Sheet 6 of 8 Attachment A E Municipal Franchise Adjustment Rider (MFA) Table of Town I City Ordinance Rates and Current BtIling Factors Town / City MARION MARKED TREE MARMADUKE MARSHALL MARVELL MAUMELLE SPEC MAYFLOWER MCCRORY MCGEHEE MCNEIL MCRAE MELBOURNE MENIFEE MITCHELLVILLE MONEITE MONTICELLO MONTROSE MOOREFIELO MOR0 MORRILTON MOUNT IDA MOUNT PLEASANT MOUNT VERNON MOUNTAIN HOME MOUNTAIN PINE MOUNTAIN VIEW N WARK NEWPORT NORMAN NORPHLET NORTH LITTLE ROCK OOEN OIL TROUGH OKOLONA OLA OMAHA PALESTINE PANGBUAN PARKOALE PARKIN PATTERSON PEACH ORCHARD PERLA PINE BLUFF PLAINVIEW PLEASANT PLAINS Ordinance Rate - % 4*25% OA 4a25?'o Bllllng Faclor - % % % % % % % % % % I yo % % % % % % % % % % % % % % % % % 3.a75wO % % % % % % % % % % % % %
20 Dockel No.: Order No.: Eflective: 211!I1 Attachmenl Sheet Schedule Sheet 7 of 8 Town I City PLUMMERVILLE POCAHONTAS PORTIA PORTLAND POTTSVILLE POW HATAN POYEN PR AffSVlLLE PYAST RAVENOEN RECTOR REDFIELD REED REYNO R ISON ROCKPORT ROE RONDO ROSSTON RUSSELL RUSSELLVILLE SEARCY SHANNON HILLS SHERIDAN SHERRILL SHERWOOD SIDNEY SMACKOVER SOUTH LEAD HILL SPARK MAN ST. CHARLES Si. FRANCIS STAMPS STEPHENS STRONG S T U TT G A R T SUCCESS SULPHUR ROCK SUMMIT SUNSET SWIFTON TAYLOR THORNTON TltLAR TRASKWOOD TAUMANN Ordinance Rate - % 4.50% 5.20% 6.25% Billing Factor - % % % % % % % 5.00awxo % % % % % % % % % % % % % % 3.amwe % % % % % % % % % % % % % % 3.ao6wm %
21 E Docket No.: Order No : Elfective: I Allachmenl Sheel 7 of 7 Schedule Sheel 8 of 8 Attachment A Municipal Franchise Adjustment Rider (MFA) Table of Town I City Ordinance Rates and Current Billing Factors Town t City TUCKERMAN TUPELO TURRELL TWIN GROVES TYRONZA U LM VALLEY SPRINGS VICTORIA VlLONlA WABBASEKA WALDENBURG WALDO WALNUT RIDGE WARREN WEINER WEST POINT WESTERN GROVE W HEATLEY WHELEN SPRINGS WHITE HALL WIDENER WlLLlFORD WlLLlSVlLLE WILMAR WILMOT WILSON WINCHESTER WOOSTER WR tghtsvtlle WYNNE Y ELLVILLE ZINC Ordinance Rale % 6.00% Billing Factor - YO % % % % % % % % % % % ' % % % % 3*9590% % % % % % % % % % % ?4
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