We expect to make the initial filings in Louisiana, followed by filings in other retail jurisdictions at the Federal and Energy Regulatory Commission over the next few months. Concurrently, a fully functioning project management office is mapping out the process as activities and plans for the targeted 2013 closing to ensure a seamless transition.
In other Utility developments this quarter: Administrative Law Judges here in the Entergy Texas rate case issued their proposal for decision early July. ALJs recommended an overall $16.4 million base rate increase. However, the staffs' working papers that were used by the ALJs indicate an approximate $28.3 million retail base rate increase. Further, the ALJs recommended a 9.8% allowed ROE. This compares to the adjusted $105 million base rate increase, an ROE of 10.6%, that was requested by Entergy Texas. We should note the recommendation affirmed in full, Entergy Texas passed fuel costs and made no adjustments to $408 million of the capital additions or over 99% of affiliate costs. That is, the ALJs are not saying you are ineffective, inefficient, or improved. Instead the ALJs recommendation results from while we believe our misapplications of basic regulatory principles and practices and these misapplications undermine the traditional rate-making process and public policy objectives. The end result makes it impossible for Entergy Texas to earn a fair return, and that is a clear violation of some of the oldest, tested and affirmed principles of the regulatory law, no matter how you can get there. And particularly, we believe certain adjustments are clearly without basis or merit. For example, approximately $30 million of purchased capacity cost incurred after the end of the test year within the allowed pro forma period when those rates will be in effect, were suggested out with a sort of hyper-technical rationale that is at odds with the purpose of the regulation.
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