# Entergy Rebuttal Testimony on the GAJA Rider The Rebuttal Testimony of [[Matthew R. Morey]] for [[Entergy Arkansas]] (Doc. 67, filed 2026-04-20), a 10-page filing in [[psc/docket-26-008-tf-2026-05-22/_overview|Docket 26-008-TF]]. It is Entergy's reply to the [[APSC Staff Testimony on the GAJA Rider|Staff]] and [[Attorney General Testimony on the GAJA Rider|Attorney General]] critiques of the [[GAJA Rider 2026 Annual Update]]. ## What's inside `26-008-TF_67_1.pdf` — 10 pages. Morey addresses two issues: the rate-of-return correction raised by [[Mark Herring]] and the short-term-debt position raised by [[Greg R. Meyer]]. Morey notes that the separate question of whether Ironwood qualifies as a strategic investment "EAL witness J. David Palmer addresses" (p. 2) — Palmer's testimony was not retrieved this session. ## Entergy concedes the rate-of-return correction Morey agrees with the Staff's roughly $463,000 reduction: the correction "is consistent with Rate Schedule No. 73, Generating Arkansas Jobs Act ('GAJA Rider') Attachment 4(E)" and "reduces the total revenue requirement by approximately $463,000" (p. 3). ## Entergy rejects the Attorney General's short-term-debt argument Morey argues the Attorney General's proposal would violate the rider's own terms and the statute: > "The GAJA Rider and Act 373 specify: The capital structure and overall rate of return approved in the Last Rate Change will be applied in this GAJA Rider to calculate a return on rate base." (pp. 3–4) > "Mr. Meyer's suggestion would require EAL to make a change to its debt structure in order to effect the GAJA Rider Rate of Return, which appears to be non-compliant with the tariff and statutory provisions setting forth the required rate of return." (p. 4) He adds a "maturity matching" argument — that long-lived assets such as Jefferson Power Station should be financed with long-term debt, and that relying on short-term debt would expose customers to interest-rate and liquidity risk (pp. 4–5). This filing confirms the Generating Arkansas Jobs Act is **Act 373** of the 2025 regular session. ## People and orgs mentioned - [[Matthew R. Morey]] — Manager, Regulatory Filings, Entergy Services, LLC; the witness. - [[Entergy Arkansas]] — the applicant utility. - [[Mark Herring]] — APSC General Staff witness, rebutted on the rate-of-return point. - [[Greg R. Meyer]] — Attorney General witness, rebutted on the short-term-debt point. - [[J. David Palmer]] — Entergy VP, Regulatory Affairs; addresses the Ironwood designation dispute in separate testimony. ## Concepts invoked - [[Generating Arkansas Jobs Act (GAJA) rider]] — the rebuttal turns on the rider tariff and Act 373's fixed capital-structure provision. ## Events documented - [[2026-04 APSC Staff and Attorney General Contest the GAJA Rider]]. ## Cross-references - [[GAJA Rider 2026 Annual Update]], [[APSC Staff Testimony on the GAJA Rider]], [[Attorney General Testimony on the GAJA Rider]] — the filings this testimony answers. ## Open questions / follow-ups - J. David Palmer's rebuttal testimony (Doc. 68), which answers the Staff's Ironwood-exclusion recommendation, was not retrieved this session — a candidate for a 26-008-TF follow-up.