ENTERGY CORP /DE/ - FORM 8-K - EX-99.1 - April 26, 2012

Attached files

file filename
8-K - ENTERGY CORP /DE/a02312.htm
EX-99.2 - ENTERGY CORP /DE/a02312992.htm
EX-99.3 - ENTERGY CORP /DE/a02312993.htm

 
 
 
 

 
For further information:
Paula Waters, VP, Investor Relations
Phone 504/576-4380
pwater1@entergy.com
INVESTOR NEWS
 
 April 26, 2012
Exhibit 99.1
ENTERGY REPORTS FIRST QUARTER FINANCIAL RESULTS

NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported a loss of $(0.86) per share on an as-reported basis and earnings of $0.44 per share on an operational basis for first quarter 2012, as shown in Table 1 below.  A more detailed discussion of quarterly results begins on page 2 of this release.

Table 1:  Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2012 vs. 2011
(Per share in U.S. $)
      
 
First Quarter
 
2012
2011
Change
As-Reported Earnings
(0.86)
1.38
(2.24)
Less Special Items
(1.30)
-
(1.30)
Operational Earnings
0.44
1.38
(0.94)
Weather Impact
(0.18)
0.10
(0.28)

As-reported results for the current quarter included a non-cash charge arising from an asset impairment taken in accordance with financial accounting rules.  The impairment, which contributed $(1.26) per share to the quarter’s as-reported loss, is discussed in more detail in the Entergy Wholesale Commodities section of this release.

Operational Earnings Highlights for First Quarter 2012
·  
Utility results were lower due primarily to higher income tax expense associated with the write off of a regulatory asset, lower net revenue and higher non-fuel operation and maintenance expense.
·  
Entergy Wholesale Commodities earnings decreased due to lower net revenue and higher non-fuel operation and maintenance expense.
·  
Parent & Other results declined due to several individually insignificant items.

“While we had a number of tactical and strategic successes during the quarter, financial results were negatively impacted by a number of items,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer.  “We continue to make good progress on our previously-announced strategic initiatives related to our transmission business, including our efforts to join MISO, the Midwest Independent Transmission System Operator, Inc.  Last week, the Federal Energy Regulatory Commission approved MISO’s cost allocation methodology for transmission projects once Entergy completes its planned integration into MISO.  This decision ensures that Entergy’s customers will pay only for transmission projects that benefit them, and widens the pathway to a seamless integration into MISO and an opportunity for customers to realize up to $1.4 billion of projected savings in the first 10 years.

“We’re focused on these major initiatives and all aspects of our business, remaining attentive to safety, operational excellence, risk mitigation, potential growth opportunities and preserving sound creditworthiness.”
 
Entergy’s business highlights also include the following:
·  
The U.S. Court of Appeals for the Federal Circuit issued its decision on the appeal of Indian Point 1 and 2’s damages claim for breach of the spent fuel disposal contract.  Assuming no more appeals, Entergy Wholesale Commodities could receive funds within the next several months.
·  
Entergy successfully executed $4.15 billion of credit facilities for the parent company ($3.5 billion) and four of the Utility operating companies.
·  
Entergy Vermont Yankee was named one of the Best Places to Work in Vermont for a third year.
·  
Edison Electric Institute honored Entergy with Emergency Recovery and Emergency Assistance awards.  This is the 14th consecutive year for Entergy to receive an EEI storm restoration award.
 
 
 
 

Entergy will host a teleconference to discuss this release at 10 a.m. CT on Thursday, April 26, 2012, with access by telephone, (719) 457-2080, confirmation code 4034210.  The call and presentation slides can also be accessed via Entergy’s website at www.entergy.com.  A replay of the teleconference will be available by telephone and on Entergy’s website at www.entergy.com as soon as practical after the transcript is filed with the U.S. Securities and Exchange Commission.  The telephone replay will be available through May 3, 2012 by dialing (719) 457-0820, confirmation code 4034210.

I.  
Consolidated Results

Consolidated Earnings

Table 2 provides a comparative summary of consolidated earnings per share for first quarter 2012 versus 2011, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.  The first quarter 2012 earnings declined compared to a year ago.  A detailed discussion of the factors driving quarter results at each business segment follows.

Table 2: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2012 vs. 2011 (see Appendix F for definitions of certain measures)
(Per share in U.S. $)
 
First Quarter
 
2012
2011
Change
As-Reported
      
Utility
0.35
0.91
(0.56)
Entergy Wholesale Commodities
(0.95)
0.68
(1.63)
Parent & Other
(0.26)
(0.21)
(0.05)
  Consolidated As-Reported Earnings
(0.86)
1.38
(2.24)
       
Less Special Items
      
Utility
(0.03)
-
(0.03)
Entergy Wholesale Commodities
(1.26)
-
(1.26)
Parent & Other
(0.01)
-
(0.01)
  Consolidated Special Items
(1.30)
-
(1.30)
       
Operational
      
Utility
0.38
0.91
(0.53)
Entergy Wholesale Commodities
0.31
0.68
(0.37)
Parent & Other
(0.25)
(0.21)
(0.04)
  Consolidated Operational Earnings
0.44
1.38
(0.94)
Weather Impact
(0.18)
0.10
(0.28)
       

Detailed earnings variance analysis is included in Appendix B-1 to this release.  In addition, Appendix B-2 provides details of special items shown in Table 2 above.

Consolidated Net Cash Flow Provided by Operating Activities

Entergy’s net cash flow provided by operating activities in first quarter 2012 was $601 million compared to $323 million in first quarter 2011.  The overall quarterly increase was due primarily to:
·  
Decrease in pension contributions, and
·  
Higher deferred fuel cost collections.

These increases were partially offset by a reduction in net revenue.

Table 3 provides the components of net cash flow provided by operating activities contributed by each business with quarterly comparisons.

Table 3:  Consolidated Net Cash Flow Provided by Operating Activities
First Quarter 2012 vs. 2011
(U.S. $ in millions)
 
First Quarter
 
2012
2011
Change
  
Utility
483
133
350
  
Entergy Wholesale Commodities
169
208
(39)
  
Parent & Other
(51)
(18)
(33)
  
    Total Net Cash Flow Provided by Operating Activities
601
323
278
  
         
 
 
 
 


II.  
Utility

In first quarter 2012, Utility’s earnings were $0.35 per share on an as-reported basis and $0.38 per share on an operational basis, compared to as-reported and operational earnings of $0.91 in first quarter 2011.  Earnings for the Utility in the current quarter reflect higher income tax expense, lower net revenue and higher non-fuel operation and maintenance expense.

Higher income tax expense resulted from Entergy recording an adjustment to write off a net regulatory asset for income taxes to align the financial accounting with the actual ratemaking treatment.  The adjustment increased income tax expense by approximately $46 million.  Entergy Gulf States Louisiana (EGSL) determined that its regulatory asset for income taxes was overstated because there was a difference between the regulatory treatment of income taxes associated with certain items (primarily pension expense) and the financial accounting treatment of those taxes.  Electric retail rates were developed using the normalization method of accounting for income taxes, while the financial accounting assumed the flow through method of accounting.  As a result, EGSL had a regulatory asset representing expected future recovery of a portion of income tax expense, while the tax expense was already being collected in rates and would not be recovered in the future.

Utility net revenue was lower than the same quarter last year.  The decrease in net revenue was attributable to significantly milder-than-normal weather experienced in the first quarter of 2012 compared to significantly colder-than-normal weather in the same period a year ago.  The effect of milder weather was partially offset by weather-adjusted sales growth.  The higher non-fuel operation and maintenance expense was driven by increases in compensation and benefit costs (largely post-employment benefits), fossil-related outage costs and the absence of nuclear insurance refunds received in 2011.

Electricity usage, in gigawatt-hour sales by customer segment, is included in Table 4.  Current quarter sales reflect the following:
·  
Residential sales in first quarter 2012, on a weather-adjusted basis, increased 2.6 percent compared to first quarter 2011.
·  
Commercial and governmental sales, on a weather-adjusted basis, increased 2.4 percent quarter over quarter.
·  
Industrial sales in the first quarter increased 4.6 percent compared to the same quarter of 2011.

Sales growth on a weather-adjusted basis was 3.3 percent for the quarter.  The Louisiana jurisdictions (including the city of New Orleans) recorded the strongest results for residential sales growth.  Industrial sales growth was largely due to expansions.  This sector saw growth from both large and small industrial customers.  Improvements in chemicals were partially offset by declines in refineries and pipelines.

Table 4 provides a comparative summary of Utility operational performance measures.

Table 4:  Utility Operational Performance Measures (see Appendix F for definitions of measures)
First Quarter 2012 vs. 2011
   
 
First Quarter
 
2012
2011
% Change
% Weather Adjusted
GWh billed
        
   Residential
7,760
9,042
(14.2)%
2.6%
   Commercial and governmental
6,992
7,032
(0.6)%
2.4%
   Industrial
9,958
9,516
4.6%
4.6%
   Total Retail Sales
24,710
25,590
(3.4)%
3.3%
   Wholesale
732
947
(22.7)%
  
   Total Sales
25,442
26,537
(4.1)%
  
O&M expense per MWh (a)
$20.08
$17.89
12.2%
  
Number of retail customers
        
   Residential
2,373,715
2,362,024
0.5%
  
   Commercial and governmental
354,675
351,721
0.8%
  
   Industrial
38,314
38,887
(1.5)%
  
         
 
(a)
First quarter 2012 excludes the effect of the special item associated with the proposed spin-merge of the transmission business.
 
Appendix C provides information on selected pending local and federal regulatory cases.
 
 
 
 

III.  
Entergy Wholesale Commodities

Entergy Wholesale Commodities operational adjusted EBITDA was $144 million in the first quarter of 2012, compared to $253 million in the same period a year ago, as shown in Table 5.  The decline was largely due to lower net revenue from the nuclear portfolio on lower energy pricing.  The average realized revenue per megawatt hour for the nuclear fleet was approximately $50, down 12 percent from $57 in the same period last year.  Nuclear generation also declined slightly due primarily to an increase in refueling and other outage days.  These net revenue decreases were partially offset by higher net revenue from the Rhode Island State Energy Center (RISEC), which was acquired in December 2011.  Higher non-fuel operation and maintenance expense also contributed to the adjusted EBITDA decline driven by higher compensation and benefits expense (largely related to post-employment benefits) and the RISEC acquisition.

Table 5:  Entergy Wholesale Commodities Operational Adjusted EBITDA – Reconciliation of GAAP to Non-GAAP Measures
  
First Quarter 2012 vs. 2011
  
($ in millions)
      
 
First Quarter
  
 
2012
2011
Change
  
Net Income
(169)
123
(292)
  
Add back: interest expense
7
5
2
  
Add back: income tax expense
(90)
85
(175)
  
Add back: depreciation and amortization
51
43
8
  
Subtract: interest and investment income
41
31
10
  
Add back: decommissioning expense
30
28
2
  
Adjusted EBITDA
(212)
253
(465)
  
Add back: special item for asset impairment
356
-
356
  
Operational Adjusted EBITDA
144
253
(109)
  
         

Table 6 provides a comparative summary of Entergy Wholesale Commodities operational performance measures.

Table 6:  Entergy Wholesale Commodities Operational Performance Measures
First Quarter 2012 vs. 2011 (see Appendix F for definitions of measures)
   
 
First Quarter
 
2012
2011
% Change
Owned capacity (b)
6,612
6,016
9.9%
GWh billed
11,193
10,519
6.4%
Average realized revenue per MWh
$49.68
$56.98
(12.8)%
Non-fuel O&M expense / purchased power per MWh (c)
$25.35
$24.95
1.6%
       
EWC Nuclear Fleet
      
Capacity factor
88%
91%
(3.3)%
GWh billed
9,838
9,913
(0.8)%
Average realized revenue per MWh
$50.32
$57.46
(12.4)%
Production cost per MWh
$25.85
$24.01
7.7%
Refueling outage days (d):
      
    Indian Point 2
27
-
  
    Indian Point 3
-
23
  
       
 
(b)
The updated capacity figure reflects the acquisition of the Rhode Island State Energy Center (583 MW) and the final testing and confirmation of a small incremental increase in output associated with equipment replacements installed at Palisades (13 MW).
(c)
First quarter 2012 excludes the effect of the special item for impairment of the Vermont Yankee assets.
(d)
Reflects the refueling outage days that occurred in the first quarter; Indian Point 3 had seven refueling days in second quarter 2011 and Indian Point 2 had one refueling day in second quarter 2012.

Entergy Wholesale Commodities first quarter 2012 results reflect an as-reported loss of $(0.95) per share and earnings of $0.31 per share on an operational basis, compared to $0.68 per share on an as-reported basis and an operational basis in first quarter 2011.  In addition to the operational adjusted EBITDA drivers noted above, an asset impairment recorded in the first quarter of the current year contributed to the as-reported decrease.  Under generally accepted accounting principles (GAAP), power plants and other long-lived assets are generally required to be accounted for on a historical cost basis, unless a triggering event occurs which requires an impairment evaluation.  In the case of Vermont Yankee, as described in our prior financial statement filings with the U.S. Securities and Exchange Commission, Entergy has performed quarterly impairment evaluations since early 2010, triggered by state actions to shut down the plant early.  A number of factors and inputs are used in the Vermont Yankee impairment evaluation, including the status of pending legal and state regulatory matters, as well as assumptions about future revenues and costs of the plant.  Under the accounting rules, these inputs are required to be estimated as of the end of each quarterly period.  The decline in the overall energy market and forward price of energy at March 31, 2012, which is used as an input in the current accounting analysis, yielded a different impairment result now as compared to earlier quarters, resulting in a pre-tax impairment charge of $(356) million, or $(1.26) per share after-tax.  This impairment is classified as a special item and is not included in operational results.
 
 
 
 


As previously noted, the triggering event and impairment result are unique to Vermont Yankee.  This impairment does not reflect a change in Entergy’s point of view of the economic value of the plant assuming continued operation through 2032, nor does it impact the company’s continued commitment to invest to assure safe operations of the plant, which is always the top priority.  It also does not reflect a change in Entergy’s point of view on the legal and state regulatory proceedings associated with obtaining certainty on continued operation of Vermont Yankee.

Table 7 provides capacity and generation sold forward projections for Entergy Wholesale Commodities’ fleet.

Table 7:  Entergy Wholesale Commodities Capacity and Generation Projected Sold Forward
Second Quarter 2012 through 2016 (see Appendix F for definitions of measures)
 
Balance of  2012
2013
2014
2015
2016
Entergy Wholesale Commodities Nuclear Portfolio
          
Energy
          
Planned TWh of generation (e)
31
40
41
41
40
Percent of planned generation sold forward
          
Unit-contingent
60%
41%
14%
12%
12%
Unit-contingent with availability guarantees
18%
19%
15%
13%
13%
Firm LD
24%
24%
20%
-%
-%
Offsetting positions
(13)%
-%
-%
-%
-%
Total energy sold forward
89%
84%
49%
25%
25%
Average revenue under contract per MWh (f)
$48
$45 - 50
$47 – 51
$49 - 57
$50 - 59
           
Capacity
          
Planned net MW in operation (e)
5,011
5,011
5,011
5,011
5,011
Percent of capacity sold forward
          
Bundled capacity and energy contracts
16%
16%
16%
16%
16%
Capacity contracts
43%
31%
25%
17%
5%
Total capacity sold forward
59%
47%
41%
33%
21%
Average revenue under contract per kW per month
  (applies to capacity contracts only)
$2.3
$2.9
$3.1
$3.2
$3.4
           
Blended Capacity and Energy Recap (based on revenues)
          
Percent of planned energy and capacity sold forward
92%
85%
54%
31%
30%
Average revenue under contract per MWh (f)
$50
$46
$48
$52
$51
           
Entergy Wholesale Commodities Non-Nuclear Portfolio
          
Energy
          
Planned TWh of generation (g)
5
7
7
6
6
Percent of planned generation sold forward
          
Cost-based contracts
41%
36%
30%
35%
32%
Firm LD
5%
5%
5%
6%
6%
Total energy sold forward
46%
41%
35%
41%
38%
           
Capacity
          
Planned net MW in operation (g)
1,052
1,052
1,052
1,052
1,052
Percent of capacity sold forward
          
Cost-based contracts
35%
29%
24%
24%
24%
Bundled capacity and energy contracts
8%
8%
8%
8%
8%
Capacity contracts
52%
47%
47%
48%
20%
Total capacity sold forward
95%
84%
79%
80%
52%
           
Non-Nuclear Net Revenue
          
Expected non-nuclear portfolio net revenue ($ millions) (h)
$70
$87
$84
$81
$86
           
 
(e)
Assumes successful license renewal and uninterrupted normal operation at all plants, including Vermont Yankee.  NRC license renewal applications are in process for three units (with current license expirations noted parenthetically): Pilgrim (6/8/2012), Indian Point 2 (9/28/2013), and Indian Point 3 (12/12/2015).  The updated capacity figure reflects the final testing and confirmation of a small incremental increase in output associated with equipment replacements installed at Palisades.
(f)
Average revenue under contract may fluctuate due to factors including positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs.  Also, average revenue under contract excludes payments owed under the value sharing agreement with the New York Power Authority.
(g)
Non-nuclear planned generation and net MW in operation include purchases from affiliated and non-affiliated counterparties under long-term contracts and exclude energy and capacity from Entergy Wholesale Commodities’ wind investment accounted for under the equity method of accounting and Ritchie.
(h)
Non-nuclear net revenue may fluctuate due to factors including costs in cost-based energy and capacity contracts and other risk management costs.
 
 
 
 


IV.  
Parent & Other

Parent & Other reported a loss of $(0.26) per share on as-reported basis and $(0.25) per share on an operational basis in first quarter 2012, compared to an as-reported and operational loss of $(0.21) per share in first quarter 2011.  Parent & Other’s earnings decrease was due to several individually insignificant items.

V.  
2012 Earnings Guidance

Entergy updated its 2012 earnings guidance range to be $3.55 to $4.35 per share on an as-reported basis and affirmed operational guidance of $4.85 to $5.65 per share previously updated on April 19, 2012.  The revised guidance ranges reflect:
·  
The write-off of a regulatory asset discussed in Utility Results Section II of this release,
·  
Higher pension expense resulting from lower-than-planned pension discount rate and other updated pension assumptions,
·  
Lower market energy prices for EWC’s open position,
·  
Significant unfavorable weather in the first quarter of 2012, and
·  
Opportunities identified to partially offset these challenges.

The revised as-reported guidance range also reflects special items recorded in the current quarter (which totaled $1.30 per share), including the asset impairment on the Vermont Yankee power plant.  As-reported earnings guidance for 2012 does not reflect any potential future expenses for the special item to be recorded in connection with the proposed spin-merge of Entergy’s transmission business.  As-reported 2012 guidance will be updated throughout the year as these transaction-related expenses are incurred.

Year-over-year changes are shown as point estimates and are applied to 2011 earnings to compute the 2012 guidance midpoint.  Drivers for the 2012 guidance range are listed separately.  Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the guidance midpoint to produce Entergy’s guidance range.  The 2012 earnings guidance is detailed in Table 8 below.
 
 
 
 
 



Table 8:  2012 Earnings Per Share Guidance – As-Reported and Operational
(Per share in U.S. $) – Updated April 2012 (i)
 
 
Segment
 
 
Description of Drivers
2011 Earnings per Share
Expected Change
2012
Guidance
Midpoint
2012 Guidance Range
  
             
Utility
2011 Operational Earnings per Share
6.20
        
Adjustment to normalize weather
  
(0.52)
      
Increased net revenue due to absence of sharing 2011 tax benefit with Entergy Louisiana customers
  
1.11
      
Increased net revenue due to sales growth and rate actions
  
0.85
      
Increased non-fuel operation and maintenance expense
  
(0.05)
      
Increased other operating expenses
  
(0.10)
      
Increased depreciation expense
  
(0.20)
      
Increased interest and other charges
  
(0.10)
      
Higher effective income tax rate
  
(2.49)
      
Other
  
0.10
      
Subtotal
6.20
(1.40)
4.80
    
             
Entergy Wholesale Commodities
2011 Operational Earnings per Share
2.74
        
Decreased net revenue from nuclear assets due primarily to lower pricing
  
(0.60)
      
Increased non-fuel operation and maintenance expense for nuclear operations
  
(0.05)
      
Increased other operating expenses for nuclear operations
  
(0.05)
      
Decommissioning liability reduction in 2011
  
(0.12)
      
Increased depreciation expense on nuclear assets
  
(0.05)
      
Increased after-tax operating income for EWC non-nuclear operations, including RISEC acquisition
  
0.10
      
Increased interest and dividend income
  
0.05
      
Higher effective income tax rate
  
(0.17)
      
Other
  
(0.05)
      
Subtotal
2.74
(0.94)
1.80
    
             
Parent & Other
2011 Operational Earnings per Share
(1.32)
        
Increased Parent non-fuel operation and maintenance expense
  
(0.05)
      
Increased Parent interest expense
  
(0.15)
      
Lower income tax expense
  
0.74
      
Other
  
(0.02)
      
 
Subtotal
(1.32)
0.52
(0.80)
    
             
Consolidated Operational
2012 Operational Earnings per Share Guidance Range
7.62
(1.82)
5.80
5.40 – 6.20
  
           
 
Decreased net revenue due to first quarter 2012 weather impact
  
(0.18)
      
 
Increased income tax expense resulting from write-off of regulatory asset
  
(0.26)
      
 
Increased non-fuel operation and maintenance expense due to final pension assumptions
  
(0.24)
      
 
Reduced operating expenses due to Vermont Yankee asset impairment
  
0.14
      
 
Decreased net revenue on EWC’s nuclear open position largely driven by lower energy prices as of March 31, 2012
  
(0.23)
      
 
Other
  
0.22
      
             
 
Revised 2012 Operational Earnings per Share Guidance Range
7.62
(2.37)
5.25
4.85 – 5.65
  
             
Consolidated As-Reported
2011 As-Reported Earnings per Share
7.55
        
Changes detailed above
  
(2.37)
      
 
2011 special items for expenses associated with proposed spin-merge of Entergy’s transmission business
  
0.07
      
 
Asset impairment on Vermont Yankee nuclear power plant
  
(1.26)
      
 
Year-to-date 2012 special item for expenses associated with proposed spin-merge of Entergy’s transmission business
  
(0.04)
      
 
2012 As-Reported Earnings per Share Guidance Range (j)
7.55
(3.60)
3.95
3.55 – 4.35
  
             
 
(i) Originally prepared November 2011, updated January 2012 to reflect 2011 final results, and revised April 2012.
(j) As-reported earnings guidance will be updated to reflect special items as recorded throughout 2012.

 
 
 
 

Key assumptions supporting 2012 operational earnings guidance are as follows:

Utility
·  
Normal weather
·  
Retail sales growth of around 1.6 percent on a weather-adjusted basis, including the effects of industrial expansion and cogen loss
·  
Increased revenue from rate actions
·  
Increased net revenue due to the absence of the third quarter 2011 regulatory charge to reflect an agreement to share a portion of tax benefits with Entergy Louisiana customers that resulted from an IRS tax settlement
·  
Increased non-fuel operation and maintenance expense due to plant acquisitions and general expense increases, including lower expense associated with employee stock options, which is offset in Parent & Other
·  
Increased depreciation expense associated with capital spending at the Utility
·  
Increased other operating expense due primarily to higher taxes other than income taxes, resulting largely from new plant acquisitions as well as expiration of property tax exemptions
·  
Increased interest expense due to higher debt outstanding
·  
Higher effective income tax rate in 2012, due largely to the absence of the August 2011 IRS settlement, a portion of which was partially offset in net revenue as noted above
·  
Other primarily driven by the effect of 2011 share repurchases

Entergy Wholesale Commodities
·  
41 TWh of total output for the non-utility nuclear fleet, reflecting an approximate 93 percent capacity factor, including 30-day scheduled refueling outages at Indian Point 2 and Palisades in Spring 2012 and FitzPatrick in Fall 2012
·  
Assumes full year operations for Vermont Yankee and Pilgrim
·  
89 percent of energy sold under existing contracts at the time 2012 guidance was initiated and 11 percent sold into the spot market for EWC-nuclear fleet
·  
$49/MWh average energy contract price and $46/MWh average unsold energy price based on published market prices at the end of September 2011 for EWC-nuclear fleet
·  
50 percent of capacity sold under existing contracts (including 32 percent sold as capacity contracts and 18 percent sold bundled with energy) for EWC-nuclear fleet at the time 2012 guidance was initiated
·  
$2.8/kW-month average sold capacity contract price and $0.5/kW-month average unsold capacity price based on published market prices at the end of September 2011 for EWC-nuclear fleet
·  
Palisades PPA revenue amortization of $17 million in 2012, down from $43 million in 2011
·  
Increased nuclear fuel expense reflected in net revenue
·  
Non-fuel operation and maintenance expense for nuclear operations, including refueling outage expense and purchased power, around $25.5/MWh reflecting general expense increases
·  
Absence of reduction in the asset retirement obligation resulting from an updated decommissioning study, which reduced decommissioning expense, completed in the fourth quarter 2011
·  
Increased other operating expense due to higher decommissioning expense (excluding the fourth quarter 2011 adjustment noted above) and higher taxes other than income taxes for nuclear operations
·  
Increased depreciation expense on nuclear assets due to higher depreciable plant balances as well as declining useful life of nuclear assets
·  
Improved year-over-year operating income for the balance of EWC’s business, including the assumed Rhode Island State Energy Center (RISEC) acquisition by year-end 2011 and market prices at the end of September 2011 (adjusted 2012 operational guidance considers market prices as of March 2012)
·  
Higher effective income tax rate in 2012

Parent & Other
·  
Increased Parent non-fuel operation and maintenance expense due primarily to the offset of lower intercompany employee stock option expense at Utility
·  
Higher Parent interest expense due to the refinancing of low-cost debt (at the time 2012 guidance was initiated, the current credit facility was set to expire in August 2012)
·  
Lower income tax expense in 2012
 
 
 
 


Share Repurchase Program
·  
2012 average fully diluted shares outstanding of approximately 177 million; does not assume any repurchases under the $500 million share repurchase authority, $350 million of which remained as of December 31, 2011

Other
·  
Overall effective income tax rate of 34 percent in 2012
·  
Pension discount rate of 5.6 percent  (the final average pension discount rate is 5.1 percent)

Revised 2012 Guidance Range
·  
Unfavorable weather effect through first quarter 2012
·  
First quarter 2012 write-off of a regulatory asset associated with income taxes
·  
Lower-than-planned pension discount rate and other updated pension assumptions
·  
Reduced expenses (fuel, refueling outage amortization, depreciation) for Vermont Yankee resulting from the asset impairment recorded in the first quarter of 2012
·  
$30/MWh average EWC unsold nuclear energy price based on year-to-date and balance of the year market prices as of the end of the March 2012
·  
$1.15/kW-month average EWC unsold nuclear capacity price based on year-to-date and balance of the year market prices as of the end of March 2012

Earnings guidance for 2012 should be considered in association with earnings sensitivities as shown in Table 9.  These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers.  Traditionally, the most significant variables for earnings drivers are retail sales for Utility and energy prices for Entergy Wholesale Commodities.  In addition, the broader earnings guidance range for 2012 also takes into consideration a number of regulatory initiatives (rate actions) underway across the Utility jurisdictions.

Estimated annual impacts shown in Table 9 are intended to be indicative rather than precise guidance.

Table 9:  2012 Earnings Sensitivities
(Per share in U.S. $) – Updated April 2012
 
Variable
 
2012 Guidance Assumption
 
Description of Change
Estimated
Annual Impact (k)
Utility
      
Sales growth
  Residential
  Commercial / Governmental
  Industrial
 
Around 1.6% total sales growth on a weather adjusted basis
 
1% change in Residential MWh sold
1% change in Comm / Govt MWh sold
1% change in Industrial MWh sold
 
- / + 0.05
- / + 0.04
- / + 0.02
Rate base
Growing rate base
$100 million change in rate base
- / + 0.03
Return on equity
Authorized regulatory ROEs
1% change in allowed ROE
- / + 0.37
Entergy Wholesale Commodities (l)
    
Capacity factor
93% capacity factor
1% change in capacity factor
- / + 0.06
Energy revenues
89% energy sold at $49/MWh in 2012;
11% unsold at $30/MWh in 2012
$10/MWh market price change
   - / + 0.10
Non-fuel operation and maintenance expense (m)
$25.5/MWh non-fuel operation and maintenance expense/purchased power
$1/MWh change
+ / - 0.14
Outage (lost revenue only)
93% capacity factor, including refueling outages for three non-utility nuclear units
1,000 MW plant for 10 days at average portfolio energy price of $49/MWh for sold and $30/MWh for unsold volumes in 2012
- 0.03 / n/a
 
 
(k)
Based on 2011 average fully diluted shares outstanding of approximately 178 million.
(l)
Based on Entergy Wholesale Commodities’ nuclear portfolio.  Assumes successful license renewal and uninterrupted normal operation at all plants.
(m)
First quarter 2012 excludes the effect of the special item for impairment of the Vermont Yankee plant.

 
 
 
 


VI.  
Long-term Financial Outlook

Entergy believes it offers a long-term, competitive utility investment opportunity combined with a valuable option represented by a unique, clean, non-utility generation business located in attractive power markets. Table 10 summarizes the current long-term financial outlook for 2010 through 2014, which does not reflect the effects of the proposed spin-merge of the transmission business discussed in Appendix A.

Table 10:  Long-term Financial Outlook
Prepared November 2011
Category
Long-term Outlook
Assumption
     
Earnings
Utility net income
6 to 8 percent compound annual net income growth rate over the 2010 – 2014 horizon (2009 base year).
 
Entergy Wholesale Commodities results
Revenue projections through 2014 will experience increased volatility due to commodity market activities – one of the most important fundamental drivers for this business.  At current sold and forward prices with its existing asset portfolio and in-the-money hedges that will roll off in the coming few years, EWC is expected to deliver declining adjusted EBITDA for the period through 2014 compared to 2010.  However, Entergy Wholesale Commodities offers a valuable long-term option from the potential positive effects of ongoing economic growth (driving increased load, market heat rates, capacity prices and natural gas prices), aging and unprofitable unit retirements (driving market heat rate expansion and capacity price increases), new environmental legislation and/or enforcement of additional environmental regulations.
 
Corporate results
Results will vary depending upon factors including future effective income tax and interest rates and the amount / timing of share repurchases.
     
Capital Deployment
A balanced capital investment / return program
Entergy continues to see value-added investment opportunities at the Utility in the coming years, as well as an investment outlook at Entergy Wholesale Commodities that supports continued safe, secure and reliable operations and opportunistic investments.  Entergy aspires to fund this capital program without issuing traditional common equity, while maintaining a competitive capital return program.  Given the company’s financial profile with a mix of utility and non-utility businesses, return of capital is expected to be provided similar to the past through a combination of common stock dividends and share repurchases.  Absent other attractive investment opportunities, capital deployment through dividends and share repurchases could total as much as $4 – $5 billion from 2010 – 2014 under the current long-term business outlook.  The amount of share repurchases may vary as a result of material changes in business results, capital spending or new investment opportunities.
     
Credit Quality
  
Strong liquidity.
Solid credit metrics that support ready access to capital on reasonable terms.
     

The long-term financial outlook should be considered in association with 2014 financial sensitivities as shown in Table 11.  These sensitivities illustrate the estimated change in earnings or adjusted EBITDA resulting from changes in business drivers.  Estimated impacts shown in Table 11 are intended to be illustrative.

Table 11:  2014 Financial Sensitivities – Illustrative
 
 
Long-term Outlook
 
Assumption
 
Drivers
 
Estimated
Annual Impact
Utility
    
(Per share in U.S. $) (n)
Earnings growth
 
6 – 8% compound annual net income growth rate from 2010 through 2014 (2009 base)
1% retail sales growth
$100 million/year investment in service
1% change in allowed ROE
1% change in non-fuel operation and maintenance expense
$100 million change in debt
- / + 0.14
- / + 0.03
- / + 0.45
+ / - 0.07
+ / - 0.02
Entergy Wholesale Commodities
    
(Adjusted EBITDA in U.S. $, millions) (o) (p)
Adjusted EBITDA
Decline in adjusted EBITDA at current sold and forward power prices compared to 2010, plus option value
+0 – 1,500 Btu/kWh heat rate expansion
+$0 – 4/kW-mo capacity price
- / + $0 – 1/MMBtu change in Henry Hub natural gas price
 
$1/MWh EBITDA expense
Up to 130
Up to 150
Down to 195 /
Up to 240
+/- 40
Corporate
    
(Per share in U.S. $) (n)
Balanced capital investment  / return / credit quality
  
1% change in interest rate on $1 billion debt
1% change in overall effective income tax rate
$500 million share repurchase (share accretion effect only)
+ / - 0.03
+ / - 0.09
+ 0.20 – 0.25
 
(n) Based on estimated 2012 average fully diluted shares outstanding of approximately 177 million.
(o) Based on Entergy Wholesale Commodities’ nuclear portfolio.  Assumes successful license renewal and uninterrupted normal operation at all plants.
(p) Each sensitivity assumes all other factors remain constant; however, market heat rates typically move inverse to natural gas prices and partially offset natural gas price movements.  This partial offset is not captured in the sensitivity.

 
 
 
 


VII.  
Appendices

Seven appendices are presented in this section as follows:

·  
Appendix A includes information on Entergy’s plan to spin off the Utility transmission business and merge that business with a subsidiary of ITC Holdings Corp.
·  
Appendix B includes earnings per share variance analysis and detail on special items that relate to the current quarter results.
·  
Appendix C provides information on selected pending local and federal regulatory cases and events.
·  
Appendix D provides financial metrics for both current and historical periods.  In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
·  
Appendix E provides a summary of planned capital expenditures for the next three years.
·  
Appendix F provides definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
·  
Appendix G provides a reconciliation of GAAP to non-GAAP financial measures used in this release.
 
 
 
 


A.  
Spin-Merge of Transmission Business

Appendix A provides information on Entergy’s plans to spin off its transmission business and merge that business into a subsidiary of ITC Holdings Corp.

Entergy’s Transmission Business Overview
Entergy’s electric transmission business consists of approximately 15,700 miles of interconnected transmission lines at voltages of 69kV and above and associated substations across its utility service territory in the Mid-South.  Following the completion of the transaction, ITC will become one of the largest electric transmission companies in the U.S., with over 30,000 miles of transmission lines, spanning from the Great Lakes to the Gulf Coast.

Transaction Overview
Entergy and ITC Boards of Directors approved a definitive agreement under which Entergy will spin off and then merge its electric transmission business into a subsidiary of ITC.  Terms of the transaction agreements include:
·  
Entergy will spin off its electric transmission business, or “Transco,” to Entergy’s shareholders in the form of a tax-free spin-off.
·  
After the spin-off, the newly formed Transco will merge with a newly-formed subsidiary of ITC.
·  
Prior to the merger, ITC expects to effectuate a $700 million recapitalization, currently anticipated to take the form of a one-time special dividend to its shareholders.
·  
The merger will result in Entergy shareholders receiving 50.1 percent of the shares of pro forma ITC in exchange for their shares of Transco; existing ITC shareholders will own the remaining 49.9 percent of the combined company.

Entergy expects to receive gross cash proceeds of $1.775 billion from indebtedness that will be incurred in connection with the transaction, and this indebtedness will be assumed by ITC at the close of the merger.  Entergy expects to utilize most of the cash proceeds to retire debt associated with the transmission business at its utility operating companies and the balance for debt reduction at the parent, Entergy Corporation.

Closing Conditions and Approvals
The transaction is subject to the satisfaction of customary closing conditions.  Primary filings and approvals required are summarized below.
Authority
Requirements
Entergy’s Retail Regulators
· Change of control of transmission assets
· Affiliate transaction approvals related to steps in the spin / merge
· Authorization to incur debt in some jurisdictions
Federal Energy Regulatory Commission
· Change of control of transmission assets (203 filing)
· Acceptance of jurisdictional agreements (205 filing)
· Authorization to assume debt / issue securities (204 filings)
· Changes to System Agreement to remove provisions related to transmission planning and equalization
· ITC filing to establish new rate tariffs for the ITC operating companies
Hart-Scott-Rodino Act
· Pre-merger notification to review potential antitrust and competition issues
Internal Revenue Service
· Private letter ruling substantially to the effect that certain requirements for a tax-free treatment of the distribution of Transco are met
Securities and Exchange Commission
· ITC Form S-4 and Proxy Statement (including audited Transco financial statements and disclosures), and
· Transco Registration Statement
ITC Shareholders
Approval required for:
· Merger,
· Issuance of shares to ITC shareholders, and
· Amendment to ITC charter to increase authorized number of shares
 
Upcoming activities in the second quarter will focus largely on regulatory filings with Entergy’s retail jurisdictions as well as FERC.  Initial filings are expected to begin mid-year. Work on other key approvals such as ITC shareholder approval, pre-merger notification under the Hart Scott Rodino Act, and IRS private letter ruling is expected to begin in the second and third quarters of 2012.

Expected Close
Completion of the transaction is expected in 2013 subject to the satisfaction of certain closing conditions, including the required approvals and filings discussed above.
 
 
 
 

Additional Information and Where to Find It
ITC and Transco will file registration statements with the Securities and Exchange Commission (“SEC”) registering shares of ITC common stock and Transco common units to be issued to Entergy shareholders in connection with the proposed transactions.  ITC will also file a proxy statement with the SEC that will be sent to the shareholders of ITC.  Entergy shareholders are urged to read the prospectus and/or information statement that will be included in the registration statements and any other relevant documents, because they contain important information about ITC, Transco and the proposed transactions.  ITC shareholders are urged to read the proxy statement and any other relevant documents because they contain important information about Transco and the proposed transactions.  The proxy statement, prospectus and/or information statement, and other documents relating to the proposed transactions (when they are available) can be obtained free of charge from the SEC’s website at www.sec.gov.  The documents, when available, can also be obtained free of charge from Entergy upon written request to Entergy Corporation, Investor Relations, P.O. Box 61000, New Orleans, LA 70161 or by calling Entergy’s Investor Relations information line at 1-888-ENTERGY (368-3749), or from ITC upon written request to ITC Holdings Corp., Investor Relations, 27175 Energy Way, Novi, MI 48377 or by calling 248-946-3000.
 
 
 
 


 
B.  
Variance Analysis and Special Items

Appendix B-1 provides details of first quarter 2012 vs. 2011 as-reported and operational earnings variance analysis for Utility, Entergy Wholesale Commodities, Parent & Other, and Consolidated.

Appendix B-1: As-Reported and Operational Earnings Per Share Variance Analysis
First Quarter 2012 vs. 2011
(Per share in U.S. $, sorted in consolidated operational column, most to least favorable)
 
Utility
  
Entergy Wholesale Commodities
  
Parent & Other
  
Consolidated
 
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
  
As-
Reported
Opera-
tional
2011 earnings
0.91
0.91
  
0.68
0.68
  
(0.21)
(0.21)
  
1.38
1.38
Other income (deductions)-other
0.04
0.04
  
0.02
0.02
  
(0.01)
(0.01)
  
0.05
0.05
Asset impairment
-
-
  
(1.26)
-
(q)
-
-
  
(1.26)
-
Decommissioning expense
-
-
  
(0.01)
(0.01)
  
-
-
  
(0.01)
(0.01)
Interest expense and other charges
(0.02)
(0.02)
  
(0.01)
(0.01)
  
-
-
  
(0.03)
(0.03)
Taxes other than income taxes
(0.01)
(0.01)
  
(0.03)
(0.03)
  
-
-
  
(0.04)
(0.04)
Depreciation / amortization expense
(0.03)
(0.03)
  
(0.02)
(0.02)
  
-
-
  
(0.05)
(0.05)
Other operation & maintenance expense
(0.16)
(0.13)
(r)
(0.08)
(0.08)
(s)
-
0.01
  
(0.24)
(0.20)
Income taxes - other
(0.24)
(0.24)
(t)
0.01
0.01
  
(0.03)
(0.03)
  
(0.26)
(0.26)
Net revenue
(0.14)
(0.14)
(u)
(0.25)
(0.25)
(v)
(0.01)
(0.01)
  
(0.40)
(0.40)
2012 earnings
0.35
0.38
  
(0.95)
0.31
  
(0.26)
(0.25)
  
(0.86)
0.44
                       

 
Utility Net Revenue Variance Analysis
2012 vs. 2011
($ EPS)
 
First Quarter
Weather
(0.28)
Sales growth / pricing
0.16
Other
(0.02)
Total
(0.14)
 
(q)
The as-reported decrease is due to the impairment loss to write down the carrying values of Vermont Yankee’s long-lived assets to their fair value, in accordance with GAAP.
 
(r)
The decrease is attributable to higher compensation and benefits costs (largely post-employment benefits); increased fossil spending; and absence of nuclear insurance refunds received in the first quarter of 2011.  Expenses incurred in connection with the planned spin-merge of the transmission business also contributed to the as-reported decrease.
 
(s)
The decrease is due to higher compensation and benefits costs (largely post-employment benefits) and the acquisition of RISEC.
 
(t)
The decrease is largely attributable to higher income tax expense associated with Entergy’s write off of an Entergy Gulf States Louisiana regulatory asset.
 
(u)
The first quarter decrease is primarily attributable to the effect of milder weather in the current quarter compared to colder-than-normal weather in the first quarter of last year, partially offset by an increase in weather-adjusted usage and the net effects of regulatory actions in several jurisdictions, including Entergy Louisiana’s rate action relating to the acquisition of Unit 2 of the Acadia Energy Center.
 
(v)
The decrease is due primarily to lower energy pricing for the nuclear portfolio; decreased nuclear generation attributable to higher planned and unplanned outage days also contributed.  Partially offsetting the decrease was higher net revenue from the acquisition of RISEC.
 
 
 
 


Appendix B-2 lists special items by business with quarter-to-quarter comparisons.  Amounts are shown on both earnings per share and net income bases.  Special items are those events that are not routine, are related to prior periods, or are related to discontinued businesses.  Special items are included in as-reported earnings per share consistent with GAAP, but are excluded from operational earnings per share.  As a result, operational earnings per share is considered a non-GAAP measure.

Appendix B-2:  Special Items (shown as positive / (negative) impact on earnings)
First Quarter 2012 vs. 2011
(Per share in U.S. $)
 
First Quarter
 
2012
2011
Change
Utility
      
Transmission business spin-merge expenses
(0.03)
-
(0.03)
       
Entergy Wholesale Commodities
      
Vermont Yankee asset impairment
(1.26)
-
(1.26)
       
Parent & Other
      
Transmission business spin-merge expenses
(0.01)
-
(0.01)
       
Total Special Items
(1.30)
-
(1.30)
       
(U.S. $ in millions)
      
 
First Quarter
 
2012
2011
Change
Utility
      
Transmission business spin-merge expenses
(5.8)
-
(5.8)
       
Entergy Wholesale Commodities
      
Vermont Yankee asset impairment
(223.5)
-
(223.5)
       
Parent & Other
      
Transmission business spin-merge expenses
(1.4)
-
(1.4)
       
Total Special Items
(230.7)
-
(230.7)
       
 
 
 
 



C.  
Regulatory Summary
 
 
Appendix C provides a summary of selected regulatory cases and events that are pending.
 
Appendix C: Regulatory Summary Table
Company
Pending Cases / Events
Retail Regulation
Entergy Arkansas
Authorized ROE: 10.2%
Last Filed Rate Base:
$4.0 billion filed 6/10  based on 6/30/09 test yr, with known and measurable changes through 6/30/10
 
Rate Case Recent Activity:  None.
Background:  EAI implemented a $63.7 million rate increase in July 2010 pursuant to the settlement approved by the Arkansas Public Service Commission (APSC) in June 2010 authorizing a 10.2 percent allowed return on equity (ROE).
Hot Spring Acquisition Recent Activity:  On February 9, 2012, the Federal Energy Regulatory Commission (FERC) issued an order authorizing the Hot Spring acquisition under Section 203 of the Federal Power Act.  As previously reported, the APSC suspended the schedule for the retail regulatory proceeding pending the results of ongoing transmission studies.  On April 6, 2012, Facilities Studies were issued indicating that long-term transmission service is available for the Hot Spring facility provided that supplemental transmission upgrades estimated at approximately $440,000 are made.  In addition, the studies noted that surveys of two lines should be conducted, which may result in additional upgrade requirements not expected to exceed $25 million.  On April 16, 2012, EAI filed the Facilities Studies with the APSC and reiterated its request for a public interest finding and timely cost recovery.  In addition, EAI and the seller, KGen Hot Spring LLC, have satisfied their obligations under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act), and the review of the transaction by the U.S. Department of Justice (DOJ) is ongoing.  Assuming timely regulatory approvals and the satisfaction of all other closing conditions, closing is targeted for around mid-2012.
Background:  On April 29, 2011, EAI announced that it signed an asset purchase agreement to acquire the Hot Spring Energy Facility, a 620 MW natural gas-fired combined-cycle turbine plant located in Hot Spring County, Arkansas, from KGen Hot Spring LLC, a subsidiary of KGen Power Corporation.  The total expected cost is $277 million (or $447/kW) including the purchase price of approximately $253 million (or $408/kW) and planned plant upgrades, transaction costs, and contingencies and excluding transmission upgrades.  On July 15, 2011, EAI filed an application with the APSC seeking approval of the Hot Spring acquisition and rider recovery concurrent with closing of the acquisition.  On July 21, 2011, the transaction was reported to the DOJ and the Federal Trade Commission to satisfy the requirements of the HSR Act.  On January 19, 2012, the APSC issued an order on the Joint Stipulation and Settlement filed by EAI, the APSC General Staff, and the Arkansas Attorney General on January 13, 2012.  Under the settlement, the parties agreed that the acquisition costs may be recovered through a capacity acquisition rider and agreed that the level of the ROE reflected in the rider would be submitted to the APSC for resolution.  The APSC Staff recommended the ROE for the rider be set at 9.7 percent.
Entergy Gulf States Louisiana
Authorized ROE Range:
9.9% - 11.4% (electric)
10.0% - 11.0% (gas)
Last Filed Rate Base: $2.4 billion (electric) filed 5/11 based on 12/31/10 test yr
$0.05 billion (gas) filed 4/11 based on 9/30/10 test yr
Formula Rate Plan Recent Activity:  None.
Background:  At its October 2009 Business and Executive (B&E) session, the Louisiana Public Service Commission (LPSC) approved an uncontested settlement which, among other things, extended the formula rate plan (FRP) regulatory process for an additional three years.  The new FRP, adopted for the 2008-2010 test years, retained the 10.65 percent ROE midpoint with a +/- 75 basis point bandwidth and a recovery mechanism for LPSC-approved capacity additions.  Earnings outside the bandwidth are allocated prospectively, 60 percent to customers and 40 percent to EGSL.  As part of the settlement, all parties also committed to work together to attempt to develop a transmission rider for EGSL.  In response to a depreciation rate complaint filed at FERC by the LPSC, EGSL presented in its 2009 test year FRP filing two ancillary FRP filing proposals based on a new depreciation study that increased depreciation rates and related FRP revenues by either $45.3 million (assuming a 40 year River Bend life) or $24.4 million (60 year life).  The depreciation matter raised by the ancillary filing and the transmission rider remain outstanding.  At its October 2011 B&E session, the LPSC accepted the joint EGSL / LPSC Staff report reflecting resolution of the 2010 test year FRP filing.  The filing reflected an 11.11 percent earned ROE which was within the earnings bandwidth resulting in no cost of service rate change.  The filing also reflected a $(22.8) million decrease outside of the FRP sharing mechanism for capacity costs.  At its November 2011 B&E session, the LPSC approved a one-year extension of EGSL’s current FRP.  EGSL is required to file a full rate case by January 2013.
Entergy Louisiana
Authorized ROE Range:
9.45% - 11.05%
Last Filed Rate Base:
$3.2 billion filed 5/11 based on 12/31/10 test yr
Formula Rate Plan Recent Activity: None.
Background:  At its October 2009 B&E session, the LPSC approved an uncontested settlement which, among other things, extended the FRP regulatory process for an additional three years.  The new FRP, adopted for the 2008-2010 test years, retained the 10.25 percent ROE midpoint with a +/- 80 basis point bandwidth and a recovery mechanism for LPSC-approved capacity additions.  Earnings outside the bandwidth are allocated prospectively, 60 percent to customers and 40 percent to ELL.  As part of the settlement, all parties also committed to work together to attempt to develop a transmission rider for ELL.  In response to a depreciation rate complaint filed at FERC by the LPSC, ELL presented in its 2009 test year FRP filing two ancillary FRP filing proposals based on a new depreciation study that increased depreciation rates and related FRP revenues by either $96.4 million (assuming a 40 year Waterford 3 life) or $40.5 million (60 year life).  The depreciation matter raised by the ancillary filing and the transmission rider remain outstanding.  At its October 2011 B&E session, the LPSC accepted the joint ELL / LPSC Staff report reflecting resolution of the 2010 test year FRP filing.  The filing reflected an 11.08 percent earned ROE which was within the earnings bandwidth tolerance resulting in no cost of service rate change.  Capacity costs were essentially unchanged.  At its November 2011 B&E session, the LPSC approved a one-year extension of ELL’s current FRP.  As part of the one-year extension, if the Waterford 3 replacement steam generator (RSG) project is completed by March 31, 2013, ELL shall be permitted to include in rates the revenue requirement associated with the project upon completion.  Inclusion of the revenue requirement shall be on a subject-to-refund basis pending proceedings by the LPSC to review the prudence of costs related to project construction.  For the rate-effective period of the 2011 test year prior to the project’s completion, earnings above certain levels will be recorded as a regulatory liability used to offset the Waterford 3 RSG project’s revenue requirement.  Beginning in September 2012 (the normal FRP rate change date) and ending the earlier of (1) when the project is closed to plant or (2) January 1, 2013, earnings in excess of the upper band (11.05 percent) shall be recognized by recording a regulatory liability.  After January 1, 2013, earnings in excess of 10.25 percent shall be recognized by recording a regulatory liability.  Upon the project’s completion, earnings above 10.25 percent shall be used to offset the project’s revenue requirement.  The total regulatory liability shall be amortized to the project’s revenue requirement over the first twelve months of operation.  These rates are anticipated to remain in effect until ELL’s next full rate case is resolved.  ELL is required to file a full rate case by January 2013.
 
 
 
 


 
Appendix C: Regulatory Summary Table (continued)
Company
Pending Cases / Events
Retail Regulation
Entergy Louisiana
(continued)
 
Waterford 3 Steam Generator Replacement Recent Activity:  On January 31, 2012, ELL filed its Quarterly Monitoring Report indicating that the Waterford 3 replacement steam generator (RSG) project continues to meet revised cost estimates and the revised schedule for installation in Fall 2012.  See also, ELL - Formula Rate Plan Recent Activity.
Background: On June 26, 2008, ELL petitioned the LPSC to replace two steam generators, the reactor vessel closure head, and control drive mechanisms.  On November 12, 2008, the LPSC approved the stipulated settlement, finding that the decision to undertake this project at an estimated cost of $511 million was prudent and the timing concurrent with the 2011 outage was reasonable.  On December 17, 2010, ELL notified the LPSC that Westinghouse advised that the Waterford 3 RSGs would not be completed and delivered in time to maintain the then current project schedule for installation during the Spring 2011 refueling outage.  On June 15, 2011, ELL filed a Special Monitoring Report to reflect the updated cost and schedule associated with the project.  The installation schedule was revised from the Spring 2011 refueling outage to the Fall 2012 refueling outage.  Additional funding of approximately $176 million is required, bringing the revised replacement project total to approximately $687 million.  Extensive inspections of the steam generators during the Spring 2011 refueling outage confirmed that Waterford 3 can operate safely for another full cycle before the replacement of the steam generator.    On December 19, 2011, ELL filed its Amended and Supplemental Application for Certain Cost Recovery, which will establish the revenue requirement for the project that will be placed into rates, subject to refund pending a review of the prudence of the project costs, upon the commercial operation of the project.  Pending the final determination of the revenue requirement, through its 2011 Test Year FRP filing, ELL will place the Waterford 3 RSG costs into rates subject to refund.
Ninemile 6 Certification Recent Activity:  At the March 21, 2012 B&E session, the LPSC approved the joint settlement between ELL, EGSL, and the LPSC Staff authorizing the construction of the Ninemile 6 project and EGSL’s participation in a life-of-unit purchase power agreement for 25 percent of the capacity and energy output of the unit.  Under the terms of the settlement, costs may be recovered through ELL’s FRP if one is in effect when the project is placed in service; alternatively, ELL must file a rate case approximately 12 months prior to the expected in-service date.  On February 2, 2012, the Council of the City of New Orleans (CCNO) approved the participation by Entergy New Orleans, Inc. (ENOI) in a life-of-unit agreement to purchase 20 percent of the capacity and energy output of the Ninemile 6 project.  On March 22, 2012, ELL gave full notice to proceed with the construction of the project.
Background:  The Ninemile 6 project is a proposed 550 MW combined-cycle gas turbine (CCGT) facility with commercial operation anticipated by the first part of 2015.  The estimated construction cost is approximately $721 million.  The resource has been allocated 55 percent to ELL, 25 percent to EGSL, and 20 percent to ENOI.  On June 21, 2011, ELL filed an application with the LPSC seeking approval to construct the Ninemile 6 project and for EGSL to purchase a portion of the capacity and energy under a life-of-unit power purchase agreement.  ENOI submitted an application to the CCNO on July 8, 2011 seeking approval of its participation in the Ninemile 6 project through a life-of-unit power purchase agreement of capacity and energy.  The project air permit was issued by the Louisiana Department of Environmental Quality on August 16, 2011.
Entergy Mississippi
Authorized ROE Range:
10.06% - 12.19%
(per FRP filing)
Last Filed Rate Base:
$1.7 billion filed 3/12 based on 12/31/11 test yr
 
Formula Rate Plan Recent Activity:  On March 15, 2012, EMI filed its 2012 FRP evaluation report for the 2011 test year with the Mississippi Public Service Commission (MPSC).   The filing reflected a 10.92 percent earned ROE which was within the bandwidth resulting in no change in rates.  The calculated 11.12 percent FRP midpoint ROE included the benefit of a 0.79 percent performance incentive.
Background:  On March 4, 2010, the MPSC approved modifications to EMI’s FRP that (1) aligned EMI’s FRP more closely with the FRPs of the other regulated gas and electric utilities in Mississippi; (2) provided the opportunity to reset the ROE and bandwidth based upon performance ratings; (3) rescored the performance adjustment factors;
(4) increased the percent of revenues limit to a 4 percent limit, with any adjustment over 2 percent requiring a hearing; and (5) directed EMI to phase-out the summer / winter rate differential in residential rates over two years.  Returns inside the bandwidth result in no change in rates while returns outside the bandwidth reset rates prospectively to or within the bandwidth depending on performance.  The annual filing occurs each March with rates effective each June.  EMI’s FRP does not have an expiration date.  On November 10, 2011, the MPSC approved a Joint Stipulation reached between EMI and the MPSC Staff regarding the 2010 test year FRP filing.  The filing reflected a 10.65 percent earned ROE which was within the bandwidth.  The calculated 11.63 percent FRP midpoint ROE included the benefit of a 0.79 percent performance incentive.  The Joint Stipulation noted that the sum of any disputed amounts do not move EMI outside the “Range of No Change” resulting in no change in rates.  On June 23, 2011, EMI filed a Depreciation Study, requesting that new rates become effective with the next base rate change.
Hinds Acquisition Recent Activity:  On February 9, 2012, the FERC issued an order authorizing the Hinds acquisition under Section 203 of the Federal Power Act.  On February 28, 2012, the MPSC approved certification of the transaction.  On April 6, 2012, Facilities Studies were issued indicating that long-term transmission service is available for the Hinds facility provided that supplemental transmission upgrades estimated at approximately $580,000 are made and assuming that various projects already included in the transmission construction plan are completed.  The retail cost recovery proceeding remains pending before the MPSC.  In addition, EMI and the seller, KGen Hinds LLC, have satisfied their obligations under the HSR Act, and the review of the transaction by the DOJ is ongoing.  Assuming timely regulatory approvals and the satisfaction of all other closing conditions, closing is targeted for around mid-2012.
Background: On April 29, 2011, EMI announced that it signed an asset purchase agreement to acquire the Hinds Energy Facility, a 450 MW (summer rating) natural gas-fired combined-cycle turbine plant located in Jackson, Mississippi, from KGen Hinds LLC, a subsidiary of KGen Power Corporation.  The total expected cost is $246 million (or $547/kW) including the purchase price of approximately $206 million (or $458/kW) and planned plant upgrades, transaction costs, and contingencies and excluding transmission upgrades.  On July 15, 2011, EMI filed an application with the MPSC seeking certification of the Hinds acquisition and rider recovery concurrent with closing of the acquisition.  On July 21, 2011, the transaction was reported to the DOJ and the Federal Trade Commission to satisfy the requirements of the HSR Act.
 
 
 
 


Appendix C: Regulatory Summary Table (continued)
Company
Pending Cases / Events
Retail Regulation
Entergy New Orleans
Authorized ROE Range:
10.7% - 11.5% (electric)
10.25% - 11.25% (gas)
Last Filed Rate Base:  $0.3 billion (electric), $0.09 billion (gas) filed 5/11 based on 12/31/10 test yr
Formula Rate Plan Recent Activity:  The 2011 test year evaluation report due in May will be the final filing in the current three-year FRP term.  ENOI anticipates that it will discuss possible renewal or extension of the FRP with the CCNO Advisors during the course of the 2011 test year FRP proceeding.  The CCNO would be required to approve any such renewal or extension.
Background:  A new three-year FRP beginning with the 2009 test year was adopted in ENOI’s rate case settled in April 2009.  Key provisions include an 11.1 percent electric ROE with a +/- 40 basis points bandwidth and a 10.75 percent gas ROE with a +/- 50 basis points bandwidth.  Earnings outside the bandwidth reset to the midpoint ROE, with rates changing on a prospective basis depending on whether ENOI is over or under-earning.  The FRP also includes a recovery mechanism for CCNO-approved capacity additions plus provisions for extraordinary cost changes and force majeure.  The FRP may be extended by the mutual agreement of ENOI and the CCNO.  The settlement also implemented energy conservation and demand side management programs.  On September 22, 2011, the CCNO approved the Agreement in Principle reached between ENOI and the CCNO Advisors resolving ENOI’s 2010 test year FRP.  The agreement resulted in an $(8.5) million incremental electric rate decrease and a $(1.6) million gas rate decrease effective October 2011.  The settlement also provides for the deferral of $13.4 million of Michoud plant maintenance expense incurred in 2010 and the establishment of a regulatory asset that will be amortized over the period October 2011 through September 2018.
  
Entergy Texas
Authorized ROE: 10.125%
Last Filed Rate Base:  $1.7 billion filed 11/11 based on 6/30/11 adjusted test yr
 
Rate Case Recent Activity:  On March 27, 2012 and April 3, 2012, Intervenors and the Public Utility Commission of Texas (PUCT) Staff, respectively, filed direct testimony.  The PUCT Staff recommended a base rate increase of $66.1 million and a 9.6 percent ROE.  On April 13, 2012, ETI filed rebuttal testimony indicating a revised request for a $104.8 million base rate increase.  The hearing commenced on April 24, 2012.
Background:  On November 28, 2011, ETI filed its rate case requesting a $111.8 million base rate increase and a 10.6 percent ROE based on an adjusted twelve-month test year ending June 30, 2011.  As part of the filing, ETI proposed a Purchased Power Recovery (PPR) rider.  The parties have agreed to a procedural schedule that contemplates a final decision by July 30, 2012, with ultimate rates relating back to June 30, 2012.  On January 12, 2012, the PUCT voted to not address the PPR rider in the current rate case; however, the PUCT voted to set a baseline in this rate case that would be applicable if a PPR rider is approved in the open rulemaking project docket.
  
Other Regulatory Activity:  No action has been taken by the PUCT on the rulemaking with respect to a purchased power capacity rider.  On April 19, 2012, a hearing took place on unresolved issues relating to the competitive generation service (CGS) tariff proposal.  Prior to the hearing, agreement was reached on “who is eligible to participate” and “who pays the cost of the program”, leaving only the issue of “the level of unrecovered costs” as an issue for the hearing.  The matter is on the PUCT Open Meeting agenda for April 27, 2012.
Background:  On March 10, 2011, the PUCT opened a rulemaking to review recovery of purchased power capacity costs.  The parties provided comments in June 2011 and the PUCT Staff subsequently held a technical conference.  The CGS tariff was proposed by ETI as required in state legislation initially enacted in 2005 and modified in 2009.  Parties have been negotiating a settlement of the CGS tariff proposal since it was severed from ETI’s last rate case proceeding in December 2010.  On September 29, 2011, the PUCT denied a motion seeking rejection of the CGS tariff proposal.
  
System Energy Resources, Inc.
Authorized ROE:  10.94%
Last Calculated Rate Base:
$1.0 billion for 3/31/12 monthly cost of service
 
Recent Activity:  None.
Background:  10.94 percent ROE approved by July 2001 FERC order.
Grand Gulf Uprate:  Work continues on the approximate 178 MW uprate.  The implementation outage is in-progress, and the uprate remains targeted for completion in the summer of 2012.  SERI owns or leases 90 percent of the plant.  Considering the progress of the uprate project during Grand Gulf’s spring 2012 refueling outage, including additional work scope that has emerged during the outage, additional information from the project’s engineering, procurement and construction contractor, the costs required to install instrumentation in the steam dryer in response to evolving guidance from the NRC staff, and delays in obtaining NRC approval, SERI now estimates the total capital investment to be made in the course of the implementation of the Grand Gulf uprate project is approximately $874 million, including South Mississippi Electric Power Association’s 10 percent share.  On November 30, 2009, the MPSC issued a Certificate of Public Convenience and Necessity for implementation of the uprate.  NRC review of the project is ongoing.  From December 2011 through April 2012, SERI worked with the NRC on various Requests for Additional Information (RAIs) relating to the General Electric-Hitachi steam dryer that is being installed as part of the uprate project.  SERI has responded to all RAIs and has worked to minimize potential cost effects or delay, if any, to the Grand Gulf uprate implementation schedule.
  
Transmission, Proposal to Join MISO and System Agreement
Authorized ROE:  11.0% (w)
Last Filed OATT Rate Base: $2.2 billion (x) filed 5/11 based on 12/31/10 test year
 
Proposal to Join MISO Recent Activity:  On March 14, 2012, the LPSC Staff and Intervenors filed direct testimony in ELL’s and EGSL’s joint change of control proceeding.  In EAI’s proceeding, the APSC Staff and Intervenors filed direct testimony on March 16, 2012.  Intervenors began filing direct testimony in the ENOI and EMI proceedings on March 23, 2012 and April 23, 2012, respectively.  Most parties were conditionally supportive of or did not oppose certifying the move to MISO as in the public interest.  Several parties, including the LPSC Staff, proposed various conditions.  The APSC Staff argued EAI has not proven that it is in the public interest to join MISO and noted that EAI should maintain the option to join SPP.  On April 13, 2012, EAI filed rebuttal testimony addressing the claims made by parties challenging the MISO proposal, and on April 19, 2012, EGSL and ELL filed responsive testimony to the pre-filed testimony of the LPSC Staff and Intervenors.  The LPSC and APSC have established procedural schedules with hearings beginning May 2, 2012 and May 30, 2012, respectively; potential decisions could be issued shortly thereafter.  The MPSC has scheduled a hearing in July, with a final order expected at the end of August.  The CCNO has scheduled a hearing in September.  ETI plans to submit its change of control filing around April 30, 2012.
  
 
(w)
Applies to sales made under Entergy’s FERC-jurisdictional open access transmission tariff (OATT).
 
(x)
Reflects transmission rate base in Entergy’s FERC OATT filing, which is also included in the rate base figures for each of the Utility operating companies shown above.
 

 
 
 


 
Appendix C: Regulatory Summary Table (continued)
Company
Pending Cases / Events
Wholesale Regulation
Transmission, Proposal to Join MISO and System Agreement
(continued)
On April 19, 2012, the FERC conditionally accepted MISO’s proposal related to the allocation of transmission upgrade costs in connection with the transition and integration of the Utility operating companies into MISO.  In addition, the Utility operating companies have agreed to give authority to the Entergy Regional State Committee (E-RSC), upon unanimous vote and within the first five years after the Utility operating companies join MISO, (i) to direct the allocation of certain transmission upgrade costs among the Utility operating companies’ transmission pricing zones in a manner that differs from the allocation that would occur under the MISO OATT and (ii) to direct the Utility operating companies as transmission owners to add projects to MISO’s transmission expansion plan.  FERC filings related to integrating the Utility operating companies into MISO are targeted for Summer 2012.  The target implementation date for joining MISO is December 2013.
Background:  In November 2006, the Utility operating companies installed SPP as their Independent Coordinator of Transmission (ICT) with an initial term of four years unless Entergy filed and FERC approved an extension beyond that four-year period.  The Utility operating companies did not transfer control of the transmission system but rather vested the ICT with responsibility, among others, for granting or denying transmission service, administering the OASIS node, developing a base plan for the transmission system that is used to determine whether costs of transmission upgrades should be rolled into transmission rates or directly assigned to customers requesting or causing the upgrade to be built, serving as reliability coordinator for the transmission system, and overseeing the weekly procurement process.  On November 16, 2010, FERC issued an order accepting the Utility operating companies’ proposal to extend the ICT arrangement with SPP by an additional term of two years, providing time for analysis of longer-term structures.
On December 16, 2010, FERC issued an order that granted the E-RSC additional authority over transmission planning and cost allocation.  Specifically, the E-RSC has been given authority, upon unanimous vote of all members, to direct the Utility operating companies to make a filing to propose changes to the way costs for future transmission upgrades are allocated under Entergy’s OATT and to add specific projects to the Entergy Construction Plan.  The E-RSC, comprised of one representative from each of the Utility operating company retail regulators, was formed in 2009 to consider several of the issues related to the Entergy transmission system.
On May 12, 2011, the Utility operating companies submitted detailed analysis to their respective retail regulators supporting their conclusion that joining MISO will provide meaningful long-term benefits for customers.  The proposal to join MISO also addresses the exit of EAI and EMI from the System Agreement.
On October 31, 2011, EGSL and ELL submitted their joint change of control filing to the LPSC.  EAI, EMI, and ENOI submitted their change of control filings to their respective regulators on November 28, 2011, December 2, 2011, and November 14, 2011, respectively.
System Agreement Recent Activity:  On March 28, 2012, the APSC approved collection through EAI’s production cost allocation rider beginning in April 2012 the $156 million rough production cost equalization payment for the period June 1, 2005 through December 31, 2005.  This payment resulted from FERC’s October 20, 2011 order, subject to refund pending review of the calculations and proposed recovery methodology.
Background:  The System Agreement case addresses the allocation of production costs among the Utility operating companies.  In 2005, FERC issued orders that require each Utility operating company’s production costs to be within        +/- 11 percent of System average production costs and set 2007 as the first possible year of payments among the Utility operating companies, based on calendar year 2006 actual production costs.  Upon appeal, the DC Circuit remanded to FERC to reconsider its conclusion that it did not have the authority to order refunds and to also reconsider its decision to delay implementation of the bandwidth remedy.
On October 20, 2011, FERC issued an order addressing the DC Circuit’s directive that FERC reconsider two issues in the original bandwidth proceeding.  On the first issue, FERC concluded that it would not require refunds for the 20-month period from September 13, 2001 through May 2, 2003.  On the second issue, the FERC order concluded that the prospective bandwidth remedy should begin on June 1, 2005 (the date of its initial order in the proceeding), rather than on January 1, 2006 as it had previously ordered.  On December 19, 2011, Entergy made a compliance filing in response to FERC’s order.  Pursuant to the calculation provided in the compliance filing, EAI made a combined payment of $156 million to EGSL, EMI, ENOI, and ETI for the seven-month period of June 1, 2005 through December 31, 2005.  On January 9, 2012, the APSC and LPSC filed protests to the compliance filing.
Since 2007, bandwidth filings have required payments from EAI to various other Utility operating companies totaling approximately $1.2 billion.  FERC set each of the 2007 through 2011 bandwidth filings for hearing following protests from retail regulatory commissions and / or third parties.  Requests for rehearing and clarification of a final FERC order in the 2007 bandwidth proceeding were filed.  All other bandwidth proceedings remain outstanding.
On November 19, 2009, FERC accepted EAI’s and EMI’s notices to withdraw from the System Agreement effective December 2013 and November 2015, respectively.  On February 1, 2011, FERC denied the LPSC and CCNO’s requests for rehearing of this order.  The LPSC and CCNO subsequently appealed this decision to the United States Court of Appeals for the DC Circuit.  On January 13, 2012, the Court of Appeals for the DC Circuit held oral argument of the LPSC and CCNO appeals.

 
 
 
 


D.  
Financial and Historical Performance Measures

Appendix D-1 provides comparative financial performance measures for the current quarter.  Appendix D-2 provides historical financial performance measures and operating performance metrics for the trailing eight quarters.  Financial performance measures in both tables include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.

As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items.  Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.  A reconciliation of operational measures to as-reported measures is provided in Appendix G.

Appendix D-1:  GAAP and Non-GAAP Financial Performance Measures
First Quarter 2012 vs. 2011
(see Appendix F for definitions of certain measures)
   
For 12 months ending March 31
2012
2011
  
Change
GAAP Measures
        
Return on average invested capital – as-reported
6.0%
7.7%
  
(1.7%)
Return on average common equity – as-reported
10.8%
14.8%
  
(4.0%)
Net margin – as-reported
8.5%
11.4%
  
(2.9%)
Cash flow interest coverage
7.5
7.8
  
(0.3)
Book value per share
$50.32
$47.88
  
$2.44
End of period shares outstanding (millions)
177.2
178.3
  
(1.1)
         
Non-GAAP Measures
        
Return on average invested capital – operational
7.2%
7.9%
  
(0.7%)
Return on average common equity – operational
13.6%
15.3%
  
(1.7%)
Net margin – operational
10.7%
11.8%
  
(1.1%)
         
As of March 31 ($ in millions)
2012
2011
  
Change
GAAP Measures
        
Cash and cash equivalents
685
726
  
(41)
Revolver capacity
2,825
2,258
  
567
Total debt
12,619
12,018
  
601
Securitization debt
1,049
910
  
139
Debt to capital ratio
57.9%
57.6%
  
0.3%
Off-balance sheet liabilities:
        
Debt of joint ventures  – Entergy’s share
93
104
  
(11)
Leases – Entergy’s share
508
546
  
(38)
Total off-balance sheet liabilities
601
650
  
(49)
         
Non-GAAP Measures
        
Debt to capital ratio, excluding securitization debt
55.7%
55.7%
  
-
Total gross liquidity
3,510
2,984
  
526
Net debt to net capital ratio, excluding securitization debt
54.2%
54.0%
  
0.2%
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
55.5%
55.5%
  
-
         


 
 
 
 

 

 
Appendix D-2: Historical Performance Measures
(see Appendix F for definitions of measures)
     
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
12YTD
11YTD
Financial
                    
   
EPS – as-reported ($)
1.65
2.62
1.26
1.38
1.76
3.53
0.87
(0.86)
(0.86)
1.38
   
Less – special items ($)
(0.06)
(0.14)
(0.04)
  - -
  - -
  - -
(0.07)
(1.30)
(1.30)
  - -
   
EPS – operational ($)
1.71
2.76
1.30
1.38
1.76
3.53
0.94
0.44
0.44
1.38
 
Trailing twelve months
                    
   
ROIC – as-reported (%)
8.1
8.2
7.8
7.7
7.7
8.2
8.0
6.0
    
   
ROIC – operational (%)
8.5
8.7
8.2
7.9
7.9
8.2
8.0
7.2
    
   
ROE – as-reported (%)
14.8
15.5
14.6
14.8
14.8
16.1
15.4
10.8
    
   
ROE – operational (%)
15.8
16.6
15.6
15.3
15.2
16.1
15.6
13.6
    
   
Cash flow interest coverage
6.6
8.0
7.8
7.8
7.6
6.6
7.1
7.5
    
   
Debt to capital ratio (%)
56.6
57.5
57.3
57.6
58.1
57.3
57.3
57.9
    
   
Debt to capital ratio, excluding securitization debt (%)
54.8
55.6
55.3
55.7
56.3
55.1
55.0
55.7
    
   
Net debt to net capital ratio, excluding securitization debt (%)
51.6
50.9
52.1
54.0
55.1
52.8
53.5
54.2
    
Utility
   
GWh billed
                    
   
Residential
7,705
12,365
7,750
9,042
7,993
12,376
7,274
7,760
7,760
9,042
   
Commercial & Governmental
7,384
9,341
7,504
7,032
7,548
9,344
7,270
6,992
6,992
7,032
   
Industrial
9,862
10,276
9,880
9,516
10,140
11,024
10,130
9,958
9,958
9,516
   
Wholesale
971
1,063
1,021
947
1,036
1,038
1,090
732
732
947
   
O&M expense per MWh (y)
$19.21
$16.41
$21.18
$17.89
$19.09
$14.93
$21.99
$20.08
$20.08
$17.89
   
Reliability – trailing twelve months
                  
   
SAIFI
1.8
1.8
1.7
1.7
1.7
1.7
1.6
1.7
    
   
SAIDI
206
197
187
188
201
213
208
210
    
Entergy Wholesale Commodities
   
Operational adjusted EBITDA
($ millions)
229
246
281
253
174
241
193
144
144
253
   
Owned Capacity in MW
6,351
6,351
6,351
6,016
6,016
6,016
6,599
6,612
6,612
6,016
   
GWh billed
10,498
10,736
10,320
10,519
10,652
11,284
11,065
11,193
11,193
10,519
   
Avg realized revenue per MWh
$58.15
$61.51
$58.16
$56.98
$52.32
$55.87
$52.74
$49.68
$49.68
$56.98
   
Non-fuel O&M expense / purchased power per MWh (z) (aa)
$26.93
$29.59
$26.74
$24.95
$26.87
$25.32
$25.37
$25.35
$25.35
$24.95
   
EWC Nuclear Operational Measures
                  
   
Capacity factor (%)
90
91
86
91
91
98
93
88
88
91
   
GWh billed
9,868
9,888
9,644
9,913
9,993
10,645
10,367
9,838
9,838
9,913
   
Avg realized revenue per MWh
$57.69
$61.41
$58.80
$57.46
$52.38
$56.07
$53.00
$50.32
$50.32
$57.46
   
Production cost per MWh (z)
$24.40
$27.79
$25.23
$24.01
$25.96
$24.92
$25.92
$25.85
$25.85
$24.01
                         
 
(y)   First quarter 2012 excludes the effect of the special item associated with the proposed spin-merge of the transmission business.
 
(z)   2010 excludes the effects of the non-utility nuclear spin-off expenses special item at Entergy Wholesale Commodities.
 
(aa) First quarter 2012 excludes the effect of the special item for impairment of the Vermont Yankee plant.
 
 
 
 
 


E.  
Planned Capital Expenditures

The capital plan for 2012 through 2014 anticipates $7.1 billion for investment, including $3.2 billion of maintenance capital, as shown in Appendix E.  The remaining $3.9 billion is for specific investments and other initiatives such as:
·  
Utility:  the Utility’s portfolio transformation strategy including the 620 MW Hot Spring and 450 MW Hinds power plant acquisitions (including planned plant upgrades, transaction costs, and contingencies), an approximate 178 MW uprate project at the Grand Gulf nuclear plant, and Entergy Louisiana’s Ninemile 6 new CCGT project; the steam generator replacement at Entergy Louisiana’s Waterford 3 nuclear unit; transmission upgrades and spending to support the Utility’s plan to join the MISO Regional Transmission Organization by December 2013.  Generation capital commitments include minimal investment for environmental compliance projects.  The effect of the increased cost estimate for the Grand Gulf nuclear plant uprate project (which is discussed more fully in Appendix C) is not reflected in the Utility capital plan.
·  
Entergy Wholesale Commodities: dry cask storage, nuclear license renewal efforts, component replacement and identified repairs across the fleet, NYPA value sharing, the Indian Point Independent Safety Evaluation, and wedgewire screens at the Indian Point site.

Appendix E:  2012 – 2014 Planned Capital Expenditures
($ in millions) – Prepared January 2012
        
 
2012
2013
2014
Total
Maintenance capital
        
Utility
        
Generation
128
129
131
388
Transmission
282
273
255
810
Distribution
433
485
496
1,414
Other
91
89
103
283
Utility Total
934
976
985
2,895
  Entergy Wholesale Commodities
90
120
107
317
Maintenance capital subtotal
1,024
1,096
1,092
3,212
Other capital commitments
        
   Utility
        
Generation
1,428
583
358
2,369
Transmission
170
128
264
562
Distribution
17
11
11
39
Other
45
47
35
127
Utility Total
1,660
769
668
3,097
   Entergy Wholesale Commodities
259
241
291
791
Other capital commitments subtotal
1,919
1,010
959
3,888
Total Planned Capital Expenditures
2,943
2,106
2,051
7,100
         


 
 
 


F.  
Definitions

Appendix F provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures, all of which are referenced in this release.

Appendix F:  Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures
Utility
  
GWh billed
Total number of GWh billed to all retail and wholesale customers
O&M expense per MWh
Operation, maintenance and refueling expenses per MWh of billed sales, excluding fuel
SAIFI
System average interruption frequency index; average number per customer per year, excluding the impact of major storm activity
SAIDI
System average interruption duration index; average minutes per customer per year, excluding the impact of major storm activity
Number of retail customers
Number of customers at end of period
Entergy Wholesale Commodities
  
Owned capacity
Installed capacity owned and operated by Entergy Wholesale Commodities, including investments in wind generation accounted for under the equity method of accounting. EWC’s 335 MW ownership position in the Harrison County power plant was sold on December 31, 2010. EWC acquired the Rhode Island State Energy Center, a 583 MW natural gas-fired combined-cycle generating plant, on December 20, 2011
GWh billed
Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting
Average realized revenue per MWh
As-reported revenue per MWh billed for Entergy Wholesale Commodities, excluding revenue from the amortization of the Palisades below-market PPA and/or investments in wind generation accounted for under the equity method of accounting
Non-fuel O&M expense / purchased power per MWh
Operation, maintenance and refueling expenses and purchased power per MWh billed, excluding fuel and investments in wind generation accounted for under the equity method of accounting
Capacity factor
Normalized percentage of the period that the nuclear plants generate power
Production cost per MWh
Fuel and non-fuel operation and maintenance expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)
Refueling outage days
Number of days lost for scheduled refueling outage during the period
Planned TWh of generation
Amount of output expected to be generated by Entergy Wholesale Commodities resources considering plant operating characteristics, outage schedules, and expected market conditions which impact dispatch, assuming timely renewal of plant operating licenses and uninterrupted normal operations at all plants
Percent of planned generation sold
forward
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval
Unit-contingent
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages
Unit-contingent with availability
guarantees
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract
Firm LD
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract
Offsetting positions
Transactions for the purchase of energy, generally to offset a Firm LD transaction
Cost-based contracts
Contracts priced in accordance with cost-based rates, a ratemaking concept used for the design and development of rate schedules to ensure that the filed rate schedules recover only the cost of providing the service;  these contacts are on owned non-utility resources located within Entergy’s service territory, which does not operate under market-based rate authority
Planned net MW in operation
Amount of capacity to be available to generate power and/or sell capacity considering uprates planned to be completed during the year
Percent of capacity sold forward
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
Bundled capacity and energy contract
A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold
Capacity contract
A contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator
Average revenue under contract per MWh or per kW per month
Revenue on a per unit basis at which generation output, capacity, or combination of both is expected to be sold to third parties (including offsetting positions), given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market Power Purchase Agreement for Palisades.  Revenue may fluctuate due to factors including positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management cost.
   
 
 
 
 


Financial measures defined in the below table include measures prepared in accordance with GAAP, as well as non-GAAP measures.  Non-GAAP measures are included in this release in order to provide metrics that remove the effect of not routine financial impacts from commonly used financial metrics.

Appendix F:  Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures (continued)
Financial Measures – GAAP
  
Return on average invested capital – as-reported
12-months rolling net income attributable to Entergy Corporation (Net Income) adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
Return on average common equity – as-reported
12-months rolling Net Income divided by average common equity
Net margin – as-reported
12-months rolling Net Income divided by 12 months rolling revenue
Cash flow interest coverage
12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense
Book value per share
Common equity divided by end of period shares outstanding
Revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Total debt
Sum of short-term and long-term debt, notes payable, capital leases, and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any
Debt of joint ventures (Entergy’s share)
Debt issued by business joint ventures at Entergy Wholesale Commodities
Leases (Entergy’s share)
Operating leases held by subsidiaries capitalized at implicit interest rate
Debt to capital ratio
Gross debt divided by total capitalization
Securitization debt
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at Entergy Texas; the 2009 ice storm at Entergy Arkansas; and investment recovery of costs associated with the cancelled Little Gypsy repowering project at Entergy Louisiana
   
Financial Measures – Non-GAAP
  
Operational earnings
As-reported Net Income adjusted to exclude the impact of special items
Adjusted EBITDA
Earnings before interest, income taxes, depreciation and amortization, and interest and investment income excluding decommissioning expense, and other than temporary impairment losses on decommissioning trust fund assets
Operational adjusted EBITDA
Adjusted EBITDA excluding effects of special items
Return on average invested capital – operational
12-months rolling operational Net Income adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
Return on average common equity – operational
12-months rolling operational Net Income divided by average common equity
Net margin – operational
12-months rolling operational Net Income divided by 12 months rolling revenue
Total gross liquidity
Sum of cash and revolver capacity
Debt to capital ratio, excluding securitization debt
Gross debt divided by total capitalization, excluding securitization debt
Net debt to net capital ratio, excluding securitization debt
Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net debt to net capital ratio, including off-balance sheet liabilities, excluding securitization debt
Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalents, excluding securitization debt
   

 
 
 



G.  
GAAP to Non-GAAP Reconciliations

Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures – Return on Equity, Return on Invested Capital and Net Margin Metrics
($ in millions)
                
 
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
As-reported Net Income-rolling 12 months (A)
1,298
1,336
1,250
1,285
1,285
1,421
1,346
946
Preferred dividends
20
20
20
20
20
20
21
21
Tax effected interest expense
368
358
354
327
320
320
316
322
As-reported Net Income, rolling 12 months including preferred dividends and tax effected interest expense (B)
1,686
1,714
1,624
1,632
1,625
1,761
1,683
1,289
                 
Special items in prior quarters
(76)
(71)
(75)
(42)
(32)
(7)
-
(13)
                 
Special items in current quarter
                
Asset impairment
-
-
-
-
-
-
-
(224)
Transmission spin-merge
-
-
-
-
-
-
(13)
(7)
Nuclear spin-off expenses
(10)
(25)
(7)
-
-
-
-
-
    Total special items (C)
(87)
(96)
(82)
(42)
(32)
(7)
(13)
(244)
                 
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
1,773
1,810
1,706
1,674
1,657
1,768
1,696
1,533
                 
Operational earnings, rolling 12 months (A-C)
1,385
1,432
1,332
1,327
1,317
1,428
1,359
1,190
                 
Average invested capital (D)
20,761
20,802
20,781
21,093
21,101
21,509
21,126
21,339
                 
Average common equity (E)
8,769
8,608
8,555
8,698
8,684
8,849
8,729
8,725
                 
Operating revenues (F)
11,058
11,453
11,488
11,269
11,210
11,273
11,229
11,072
                 
ROIC – as-reported % (B/D)
8.1
8.2
7.8
7.7
7.7
8.2
8.0
6.0
                 
ROIC – operational % ((B-C)/D)
8.5
8.7
8.2
7.9
7.9
8.2
8.0
7.2
                 
ROE – as-reported % (A/E)
14.8
15.5
14.6
14.8
14.8
16.1
15.4
10.8
                 
ROE – operational % ((A-C)/E)
15.8
16.6
15.6
15.3
15.2
16.1
15.6
13.6
                 
Net margin – as-reported % (A/F)
11.7
11.7
10.9
11.4
11.5
12.6
12.0
8.5
                 
Net margin – operational % ((A-C)/F)
12.5
12.5
11.6
11.8
11.8
12.7
12.1
10.7
                 

 
 
 



Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
($ in millions)
                
 
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
Gross debt (A)
11,853
12,247
11,816
12,018
12,360
12,452
12,387
12,619
Less securitization debt (B)
829
940
931
910
896
1,086
1,071
1,049
Gross debt, excluding securitization  debt (C)
11,024
11,307
10,885
11,108
11,464
11,366
11,316
11,570
Less cash and cash equivalents (D)
1,336
1,931
1,294
726
530
987
694
685
 Net debt, excluding securitization debt (E)
9,688
9,376
9,591
10,382
10,934
10,379
10,622
10,885
                 
Total capitalization (F)
20,935
21,290
20,623
20,864
21,268
21,728
21,629
21,813
Less securitization debt (B)
829
940
931
910
896
1,086
1,071
1,049
Total capitalization, excluding securitization debt (G)
20,106
20,350
19,692
19,954
20,372
20,642
20,558
20,764
Less cash and cash equivalents (D)
1,336
1,931
1,294
726
530
987
694
685
Net capital, excluding securitization debt (H)
18,770
18,419
18,398
19,228
19,842
19,655
19,864
20,079
                 
Debt to capital ratio % (A/F)
56.6
57.5
57.3
57.6
58.1
57.3
57.3
57.9
                 
Debt to capital ratio, excluding securitization debt % (C/G)
54.8
55.6
55.3
55.7
56.3
55.1
55.0
55.7
                 
Net debt to net capital ratio, excluding securitization debt % (E/H)
51.6
50.9
52.1
54.0
55.1
52.8
53.5
54.2
                 
Off-balance sheet liabilities (I)
641
638
653
650
647
645
604
601
                 
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
53.2
52.5
53.8
55.5
56.5
54.3
54.8
55.5
                 
Revolver capacity (J)
1,338
2,216
2,354
2,258
1,993
2,116
2,001
2,825
                 
Gross liquidity (D+J)
2,674
4,147
3,648
2,984
2,523
3,103
2,695
3,510
                 



 
 
 


Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Entergy Wholesale Commodities Operational Adjusted EBITDA
($ in millions)
                
 
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
1Q12
Net Income
105
144
151
123
66
131
172
(169)
Add back: interest expense
9
6
5
5
5
6
6
7
Add back: income tax expense
67
30
83
85
64
64
12
(90)
Add back: depreciation and amortization
38
42
43
43
44
45
46
51
Subtract: interest and investment income
39
43
39
31
33
34
39
41
Add back: decommissioning expense
27
27
28
28
28
29
(4)
30
Subtract: other than temporary impairments
(1)
-
-
-
-
-
-
-
Adjusted EBITDA
207
206
270
253
174
241
193
(212)
Add back: special item for nuclear spin-off
                 expenses
22
40
11
-
-
-
-
-
Add back: special item for asset impairment
-
-
-
-
-
-
-
356
Operational adjusted EBITDA
229
246
281
253
174
241
193
144

Entergy Corporation’s common stock is listed on the New York and Chicago exchanges under the symbol “ETR”.

Additional investor information can be accessed online at
www.entergy.com/investor_relations

*********************************************************************************************************************************
In this news release, and from time to time, Entergy makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in: (i) Entergy’s Form 10-K for the year ended December 31, 2011 and (ii) Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (f) conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and subsequent securities filings, and (g) risks inherent in the proposed spin-off and subsequent merger of Entergy’s electric transmission business into a subsidiary of ITC Holdings Corp. Entergy cannot provide any assurances that the spin-off and merger transaction will be completed and cannot give any assurance as to the terms on which such transaction will be consummated. The spin-off and merger transaction is subject to certain conditions precedent, including regulatory approvals and approval by ITC Holdings Corp. shareholders.


 
 
 
 

 
VIII.  
Financial Statements
 
Entergy Corporation
  
   
Consolidating Balance Sheet
  
March 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 51,242     $ 11,871     $ 4     $ 63,117  
    Temporary cash investments
     364,284       248,008       9,593       621,885  
     Total cash and cash equivalents
     415,526       259,879       9,597       685,002  
Securitization recovery trust account
     49,364       -       -       49,364  
Notes receivable
     -       1,070,361       (1,070,361 )     -  
Accounts receivable:
                                
   Customer
     342,835       110,091       -       452,926  
   Allowance for doubtful accounts
     (29,876 )     (203 )     -       (30,079 )
   Associated companies
     16,371       112,007       (128,378 )     -  
   Other
     135,925       9,625       127       145,677  
   Accrued unbilled revenues
     260,261       278       -       260,539  
     Total accounts receivable
     725,516       231,798       (128,251 )     829,063  
Deferred fuel costs
     69,924       -       -       69,924  
Accumulated deferred income taxes
     121,074       -       (116,424 )     4,650  
Fuel inventory - at average cost
     213,865       8,480       -       222,345  
Materials and supplies - at average cost
     561,728       334,905       -       896,633  
Deferred nuclear refueling outage costs
     104,448       126,065       -       230,514  
System agreement cost equalization
     36,800       -       -       36,800  
Prepaid taxes
     -       225,369       (225,369 )     -  
Prepayments and other
     77,751       373,172       1,119       452,042  
TOTAL
     2,375,996       2,630,029       (1,529,689 )     3,476,337  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     1,097,271       45,940       (1,097,442 )     45,769  
Decommissioning trust funds
     1,774,238       2,265,081       -       4,039,319  
Non-utility property - at cost (less accumulated depreciation)
     172,112       74,051       13,704       259,867  
Other
     375,968       13,693       30,000       419,661  
TOTAL
     3,419,589       2,398,765       (1,053,738 )     4,764,616  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     34,703,928       4,686,238       3,416       39,393,582  
Property under capital lease
     808,790       -       -       808,790  
Natural gas
     345,541       439       -       345,981  
Construction work in progress
     1,665,761       358,567       678       2,025,005  
Nuclear fuel
     814,858       684,361       -       1,499,219  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     38,338,878       5,729,605       4,094       44,072,577  
Less - accumulated depreciation and amortization
     17,425,291       1,060,131       358       18,485,780  
PROPERTY, PLANT AND EQUIPMENT - NET
     20,913,587       4,669,474       3,736       25,586,797  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     730,467       -       -       730,467  
    Other regulatory assets
     4,577,018       -       -       4,577,018  
    Deferred fuel costs
     258,534       -       -       258,534  
Goodwill
     374,099       3,073       -       377,172  
Accumulated deferred income taxes
     7,611       19,097       4,563       31,271  
Other
     260,674       907,697       (40,359 )     1,128,012  
TOTAL
     6,208,403       929,867       (35,796 )     7,102,474  
              -                  
TOTAL ASSETS
   $ 32,917,575     $ 10,628,135     $ (2,615,487 )   $ 40,930,224  
                                 
*Totals may not foot due to rounding.
                                


 
 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
March 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ 288,845     $ 26,430     $ -     $ 315,275  
Notes payable and commercial paper:
                                
  Associated companies
     -       137,966       (137,966 )     -  
  Other
     141,113       -       -       141,113  
Account payable:
                                
  Associated companies
     10,583       10,085       (20,668 )     -  
  Other
     672,787       242,940       521       916,248  
Customer deposits
     354,178       -       -       354,178  
Taxes accrued
     522,322       -       (333,670 )     188,652  
Accumulated deferred income taxes
     113,920       49,044       82,028       244,992  
Interest accrued
     141,171       1,266       8,881       151,318  
Deferred fuel costs
     279,723       -       -       279,723  
Obligations under capital leases
     3,692       -       -       3,692  
Pension and other postretirement liabilities
     40,019       6,322       -       46,341  
System agreement cost equalization
     74,207       -       -       74,207  
Other
     139,780       203,578       2,423       345,781  
TOTAL
     2,782,340       677,631       (398,451 )     3,061,520  
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     6,663,141       884,722       464,765       8,012,628  
Accumulated deferred investment tax credits
     282,140       -       -       282,140  
Obligations under capital leases
     37,471       -       -       37,471  
Other regulatory liabilities
     809,729       -       -       809,729  
Decommissioning and retirement cost liabilities
     1,832,588       1,520,231       -       3,352,820  
Accumulated provisions
     364,639       1,799       4,323       370,761  
Pension and other postretirement liabilities
     2,445,072       681,511       -       3,126,583  
Long-term debt
     9,049,262       107,743       2,964,100       12,121,105  
Other
     672,588       628,669       (740,560 )     560,697  
TOTAL
     22,156,630       3,824,675       2,692,628       28,673,934  
                                 
Subsidiaries' preferred stock without sinking fund
     186,510       -       -       186,510  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2012
     2,161,268       351,095       (2,509,815 )     2,548  
  Paid-in capital
     2,417,634       1,428,579       1,506,043       5,352,256  
  Retained earnings
     3,427,058       3,979,850       1,741,354       9,148,262  
  Accumulated other comprehensive income (loss)
     (187,865 )     366,305       (144,773 )     33,667  
  Less - treasury stock, at cost (77,601,080 shares in 2012)
     120,000       -       5,502,473       5,622,473  
  Total common shareholders' equity
     7,698,095       6,125,829       (4,909,664 )     8,914,260  
Subsidiaries' preferred stock without sinking fund
     94,000       -       -       94,000  
TOTAL
     7,792,095       6,125,829       (4,909,664 )     9,008,260  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 32,917,575     $ 10,628,135     $ (2,615,487 )   $ 40,930,224  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2011
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 77,711     $ 3,754     $ 3     $ 81,468  
    Temporary cash investments
     281,921       318,633       12,416       612,970  
     Total cash and cash equivalents
     359,632       322,387       12,419       694,438  
Securitization recovery trust account
     50,304       -       -       50,304  
Notes receivable
     -       1,083,918       (1,083,918 )     -  
Accounts receivable:
                                
   Customer
     403,321       165,237       -       568,558  
   Allowance for doubtful accounts
     (30,827 )     (332 )     -       (31,159 )
   Associated companies
     42,847       99,162       (142,009 )     -  
   Other
     151,956       13,376       854       166,186  
   Accrued unbilled revenues
     297,265       1,018       -       298,283  
     Total accounts receivable
     864,562       278,461       (141,155 )     1,001,868  
Deferred fuel costs
     209,776       -       -       209,776  
Accumulated deferred income taxes
     141,804       4,655       (136,603 )     9,856  
Fuel inventory - at average cost
     196,246       5,886       -       202,132  
Materials and supplies - at average cost
     559,230       335,526       -       894,756  
Deferred nuclear refueling outage costs
     103,788       127,243       -       231,031  
System agreement cost equalization
     36,800       -       -       36,800  
Prepaid taxes
     -       79,165       (79,165 )     -  
Prepayments and other
     67,285       222,049       2,408       291,742  
TOTAL
     2,589,427       2,459,290       (1,426,014 )     3,622,703  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     1,147,271       44,764       (1,147,159 )     44,876  
Decommissioning trust funds
     1,639,951       2,148,080       -       3,788,031  
Non-utility property - at cost (less accumulated depreciation)
     174,029       71,888       14,519       260,436  
Other
     374,379       12,044       30,000       416,423  
TOTAL
     3,335,630       2,276,776       (1,102,640 )     4,509,766  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     34,487,985       4,894,128       3,411       39,385,524  
Property under capital lease
     809,449       -       -       809,449  
Natural gas
     343,111       439       -       343,550  
Construction work in progress
     1,420,163       358,902       658       1,779,723  
Nuclear fuel
     801,972       744,195       -       1,546,167  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     37,862,680       5,997,664       4,069       43,864,413  
Less - accumulated depreciation and amortization
     17,238,272       1,016,507       349       18,255,128  
PROPERTY, PLANT AND EQUIPMENT - NET
     20,624,408       4,981,157       3,720       25,609,285  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     799,006       -       -       799,006  
    Other regulatory assets
     4,636,871       -       -       4,636,871  
    Deferred fuel costs
     172,202       -       -       172,202  
Goodwill
     374,099       3,073       -       377,172  
Accumulated deferred income taxes
     4,313       9,232       5,458       19,003  
Other
     198,593       803,552       (46,454 )     955,691  
TOTAL
     6,185,084       815,857       (40,996 )     6,959,945  
              -                  
TOTAL ASSETS
   $ 32,734,549     $ 10,533,080     $ (2,565,930 )   $ 40,701,699  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2011
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ 245,472     $ 27,261     $ 1,920,000     $ 2,192,733  
Notes payable and commercial paper:
                                
  Associated companies
     -       138,862       (138,862 )     -  
  Other
     108,331       -       -       108,331  
Account payable:
                                
  Associated companies
     14,839       36,878       (51,717 )     -  
  Other
     787,516       280,663       917       1,069,096  
Customer deposits
     351,741       -       -       351,741  
Taxes accrued
     569,641       -       (291,406 )     278,235  
Accumulated deferred income taxes
     54,592       42,613       2,724       99,929  
Interest accrued
     169,710       490       13,312       183,512  
Deferred fuel costs
     255,839       -       -       255,839  
Obligations under capital leases
     3,631       -       -       3,631  
Pension and other postretirement liabilities
     37,858       6,173       -       44,031  
System agreement cost equalization
     80,090       -       -       80,090  
Other
     114,083       158,277       11,171       283,531  
TOTAL
     2,793,343       691,217       1,466,139       4,950,699  
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     6,680,438       824,393       591,621       8,096,452  
Accumulated deferred investment tax credits
     284,747       -       -       284,747  
Obligations under capital leases
     38,421       -       -       38,421  
Other regulatory liabilities
     737,403       -       (9,210 )     728,193  
Decommissioning and retirement cost liabilities
     1,803,665       1,492,905       -       3,296,570  
Accumulated provisions
     379,331       1,849       4,332       385,512  
Pension and other postretirement liabilities
     2,463,493       670,164       -       3,133,657  
Long-term debt
     8,936,342       107,744       999,627       10,043,713  
Other
     651,919       639,552       (789,517 )     501,954  
TOTAL
     21,975,759       3,736,607       796,853       26,509,219  
                                 
Subsidiaries' preferred stock without sinking fund
     186,510       55,399       (55,398 )     186,511  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2011
     2,161,268       327,937       (2,486,657 )     2,548  
  Paid-in capital
     2,416,634       1,499,406       1,444,642       5,360,682  
  Retained earnings
     3,417,829       4,118,292       1,910,839       9,446,960  
  Accumulated other comprehensive income (loss)
     (190,794 )     104,222       (81,880 )     (168,452 )
  Less - treasury stock, at cost (78,396,988 shares in 2011)
     120,000       -       5,560,468       5,680,468  
  Total common shareholders' equity
     7,684,937       6,049,857       (4,773,524 )     8,961,270  
Subsidiaries' preferred stock without sinking fund
     94,000       -       -       94,000  
TOTAL
     7,778,937       6,049,857       (4,773,524 )     9,055,270  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 32,734,549     $ 10,533,080     $ (2,565,930 )   $ 40,701,699  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
March 31, 2012 vs December 31, 2011
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ (26,469 )   $ 8,117     $ 1     $ (18,351 )
    Temporary cash investments
     82,363       (70,625 )     (2,823 )     8,915  
     Total cash and cash equivalents
     55,894       (62,508 )     (2,822 )     (9,436 )
Securitization recovery trust account
     (940 )     -       -       (940 )
Notes receivable
     -       (13,557 )     13,557       -  
Accounts receivable:
                                
   Customer
     (60,486 )     (55,146 )     -       (115,632 )
   Allowance for doubtful accounts
     951       129       -       1,080  
   Associated companies
     (26,476 )     12,845       13,631       -  
   Other
     (16,031 )     (3,751 )     (727 )     (20,509 )
   Accrued unbilled revenues
     (37,004 )     (740 )     -       (37,744 )
     Total accounts receivable
     (139,046 )     (46,663 )     12,904       (172,805 )
Deferred fuel costs
     (139,852 )     -       -       (139,852 )
Accumulated deferred income taxes
     (20,730 )     (4,655 )     20,179       (5,206 )
Fuel inventory - at average cost
     17,619       2,594       -       20,213  
Materials and supplies - at average cost
     2,498       (621 )     -       1,877  
Deferred nuclear refueling outage costs
     660       (1,178 )     -       (518 )
System agreement cost equalization
     -       -       -       -  
Prepaid taxes
     -       146,204       (146,204 )     -  
Prepayments and other
     10,466       151,123       (1,289 )     160,300  
TOTAL
     (213,431 )     170,739       (103,675 )     (146,367 )
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     (50,000 )     1,176       49,717       893  
Decommissioning trust funds
     134,287       117,001       -       251,288  
Non-utility property - at cost (less accumulated depreciation)
     (1,917 )     2,163       (815 )     (569 )
Other
     1,589       1,649       -       3,238  
TOTAL
     83,959       121,989       48,902       254,850  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     215,943       (207,890 )     5       8,058  
Property under capital lease
     (659 )     -       -       (659 )
Natural gas
     2,430       -       -       2,431  
Construction work in progress
     245,598       (335 )     20       245,282  
Nuclear fuel
     12,886       (59,834 )     -       (46,948 )
TOTAL PROPERTY, PLANT AND EQUIPMENT
     476,198       (268,059 )     25       208,164  
Less - accumulated depreciation and amortization
     187,019       43,624       9       230,652  
PROPERTY, PLANT AND EQUIPMENT - NET
     289,179       (311,683 )     16       (22,488 )
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     (68,539 )     -       -       (68,539 )
    Other regulatory assets
     (59,853 )     -       -       (59,853 )
    Deferred fuel costs
     86,332       -       -       86,332  
Goodwill
     -       -       -       -  
Accumulated deferred income taxes
     3,298       9,865       (895 )     12,268  
Other
     62,081       104,145       6,095       172,321  
TOTAL
     23,319       114,010       5,200       142,529  
                                 
TOTAL ASSETS
   $ 183,026     $ 95,055     $ (49,557 )   $ 228,525  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
March 31, 2012 vs December 31, 2011
  
(Dollars in thousands)
  
(Unaudited)
  
                     
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ 43,373     $ (831 )   $ (1,920,000 )   $ (1,877,458 )
Notes payable and commercial paper:
                                
  Associated companies
     -       (896 )     896       -  
  Other
     32,782       -       -       32,782  
Account payable:
                                
  Associated companies
     (4,256 )     (26,793 )     31,049       -  
  Other
     (114,729 )     (37,723 )     (396 )     (152,848 )
Customer deposits
     2,437       -       -       2,437  
Taxes accrued
     (47,319 )     -       (42,264 )     (89,583 )
Accumulated deferred income taxes
     59,328       6,431       79,304       145,063  
Interest accrued
     (28,539 )     776       (4,431 )     (32,194 )
Deferred fuel costs
     23,884       -       -       23,884  
Obligations under capital leases
     61       -       -       61  
Pension and other postretirement liabilities
     2,161       149       -       2,310  
System agreement cost equalization
     (5,883 )     -       -       (5,883 )
Other
     25,697       45,301       (8,748 )     62,250  
TOTAL
     (11,003 )     (13,586 )     (1,864,590 )     (1,889,179 )
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     (17,297 )     60,329       (126,856 )     (83,824 )
Accumulated deferred investment tax credits
     (2,607 )     -       -       (2,607 )
Obligations under capital leases
     (950 )     -       -       (950 )
Other regulatory liabilities
     72,326       -       9,210       81,536  
Decommissioning and retirement cost liabilities
     28,923       27,326       -       56,250  
Accumulated provisions
     (14,692 )     (50 )     (9 )     (14,751 )
Pension and other postretirement liabilities
     (18,421 )     11,347       -       (7,074 )
Long-term debt
     112,920       (1 )     1,964,473       2,077,392  
Other
     20,669       (10,883 )     48,956       58,742  
TOTAL
     180,871       88,068       1,895,774       2,164,714  
                                 
Subsidiaries' preferred stock without sinking fund
     -       (55,399 )     55,399       -  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2012 and in 2011
     -       23,158       (23,158 )     -  
  Paid-in capital
     1,000       (70,827 )     61,401       (8,426 )
  Retained earnings
     9,229       (138,442 )     (169,485 )     (298,698 )
  Accumulated other comprehensive income (loss)
     2,929       262,083       (62,893 )     202,119  
  Less - treasury stock, at cost
     -       -       (57,995 )     (57,995 )
  Total common shareholders' equity
     13,158       75,972       (136,140 )     (47,010 )
Subsidiaries' preferred stock without sinking fund
     -       -       -       -  
TOTAL
     13,158       75,972       (136,140 )     (47,010 )
                                 
TOTAL LIABILITIES AND EQUITY
   $ 183,026     $ 95,055     $ (49,557 )   $ 228,525  
                                 
*Totals may not foot due to rounding.
                                
                                 


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended March 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 1,785,632     $ -     $ (791 )   $ 1,784,841  
     Natural gas
     46,008       -       -       46,008  
     Competitive businesses
     -       560,251       (7,441 )     552,810  
                         Total
     1,831,640       560,251       (8,232 )     2,383,659  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     444,438       94,701       (302 )     538,837  
          Purchased power
     281,190       13,875       (10,099 )     284,966  
          Nuclear refueling outage expenses
     26,702       37,181       -       63,884  
          Asset impairment
     -       355,524       -       355,524  
          Other operation and maintenance
     490,227       232,741       (1,332 )     721,635  
     Decommissioning
     28,231       29,672       -       57,903  
     Taxes other than income taxes
     107,099       29,769       302       137,170  
     Depreciation and amortization
     228,086       51,071       1,059       280,215  
     Other regulatory charges (credits) - net
     382       -       -       382  
                         Total
     1,606,355       844,534       (10,372 )     2,440,516  
                                 
                                 
OPERATING INCOME (LOSS)
     225,285       (284,283 )     2,140       (56,857 )
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     24,307       -       -       24,307  
     Interest and investment income
     43,273       40,293       (42,574 )     40,992  
     Miscellaneous - net
     (7,863 )     (7,781 )     (2,345 )     (17,990 )
                          Total
     59,717       32,512       (44,919 )     47,309  
                                 
INTEREST EXPENSE
                                
     Interest expense
     127,474       7,148       12,123       146,745  
     Allowance for borrowed funds used during construction
     (9,391 )     -       -       (9,391 )
                         Total
     118,083       7,148       12,123       137,354  
                                 
INCOME (LOSS) BEFORE INCOME TAXES
     166,919       (258,919 )     (54,902 )     (146,902 )
                                 
Income taxes
     99,707       (90,407 )     (9,462 )     (162 )
                                 
CONSOLIDATED NET INCOME (LOSS)
     67,212       (168,512 )     (45,440 )     (146,740 )
                                 
Preferred dividend requirements of subsidiaries
     4,332       -       611       4,943  
                                 
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 62,880     $ (168,512 )   $ (46,051 )   $ (151,683 )
                                 
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.35     $ (0.95 )   $ (0.26 )   $ (0.86 )
   DILUTED
   $ 0.35     $ (0.95 )   $ (0.26 )   $ (0.86 )
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             176,865,363  
   DILUTED
                             177,388,045  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended March 31, 2011
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 1,866,495     $ -     $ (596 )   $ 1,865,899  
     Natural gas
     71,123       -       -       71,123  
     Competitive businesses
     -       610,146       (5,960 )     604,186  
                         Total
     1,937,618       610,146       (6,556 )     2,541,208  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     438,157       69,722       (186 )     507,693  
          Purchased power
     356,544       15,768       (9,694 )     362,618  
          Nuclear refueling outage expenses
     26,476       37,509       -       63,985  
          Asset impairment
     -       -       -       -  
          Other operation and maintenance
     448,201       209,143       (1,596 )     655,748  
     Decommissioning
     27,162       28,103       -       55,265  
     Taxes other than income taxes
     103,591       21,412       231       125,234  
     Depreciation and amortization
     220,605       43,231       1,049       264,885  
     Other regulatory charges (credits) - net
     (5,111 )     -       -       (5,111 )
                         Total
     1,615,625       424,888       (10,196 )     2,030,317  
                                 
                                 
OPERATING INCOME
     321,993       185,258       3,640       510,891  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     17,289       -       -       17,289  
     Interest and investment income
     36,595       30,898       (40,746 )     26,747  
     Miscellaneous - net
     (4,502 )     (3,237 )     (1,660 )     (9,399 )
                          Total
     49,382       27,661       (42,406 )     34,637  
                                 
INTEREST EXPENSE
                                
     Interest expense
     121,052       4,745       10,337       136,134  
     Allowance for borrowed funds used during construction
     (8,534 )     -       -       (8,534 )
                         Total
     112,518       4,745       10,337       127,600  
                                 
INCOME BEFORE INCOME TAXES
     258,857       208,174       (49,103 )     417,928  
                                 
Income taxes
     90,204       84,941       (10,895 )     164,250  
                                 
CONSOLIDATED NET INCOME
     168,653       123,233       (38,208 )     253,678  
                                 
Preferred dividend requirements of subsidiaries
     4,332       683       -       5,015  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 164,321     $ 122,550     $ (38,208 )   $ 248,663  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.92     $ 0.68     $ (0.21 )   $ 1.39  
   DILUTED
   $ 0.91     $ 0.68     $ (0.21 )   $ 1.38  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             178,834,342  
   DILUTED
                             180,083,830  
                                 
*Totals may not foot due to rounding.
                                
                                 


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended March 31, 2012 vs. 2011
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ (80,863 )   $ -     $ (195 )   $ (81,058 )
     Natural gas
     (25,115 )     -       -       (25,115 )
     Competitive businesses
     -       (49,895 )     (1,481 )     (51,376 )
                         Total
     (105,978 )     (49,895 )     (1,676 )     (157,549 )
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     6,281       24,979       (116 )     31,144  
          Purchased power
     (75,354 )     (1,893 )     (405 )     (77,652 )
          Nuclear refueling outage expenses
     226       (328 )     -       (101 )
          Asset impairment
     -       355,524       -       355,524  
          Other operation and maintenance
     42,026       23,598       264       65,887  
     Decommissioning
     1,069       1,569       -       2,638  
     Taxes other than income taxes
     3,508       8,357       71       11,936  
     Depreciation and amortization
     7,481       7,840       10       15,330  
     Other regulatory charges (credits )- net
     5,493       -       -       5,493  
                         Total
     (9,270 )     419,646       (176 )     410,199  
                                 
                                 
OPERATING INCOME
     (96,708 )     (469,541 )     (1,500 )     (567,748 )
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     7,018       -       -       7,018  
     Interest and investment income
     6,678       9,395       (1,828 )     14,245  
     Miscellaneous - net
     (3,361 )     (4,544 )     (685 )     (8,591 )
                          Total
     10,335       4,851       (2,513 )     12,672  
                                 
INTEREST EXPENSE
                                
     Interest expense
     6,422       2,403       1,786       10,611  
     Allowance for borrowed funds used during construction
     (857 )     -       -       (857 )
                         Total
     5,565       2,403       1,786       9,754  
                                 
INCOME BEFORE INCOME TAXES
     (91,938 )     (467,093 )     (5,799 )     (564,830 )
                                 
Income taxes
     9,503       (175,348 )     1,433       (164,412 )
                                 
CONSOLIDATED NET INCOME
     (101,441 )     (291,745 )     (7,232 )     (400,418 )
                                 
Preferred dividend requirements of subsidiaries
     -       (683 )     611       (72 )
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ (101,441 )   $ (291,062 )   $ (7,843 )   $ (400,346 )
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ (0.57 )   $ (1.63 )   $ (0.05 )   $ (2.25 )
   DILUTED
   $ (0.56 )   $ (1.63 )   $ (0.05 )   $ (2.24 )
                                 
                                 
*Totals may not foot due to rounding.
                                
                                 


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended March 31, 2012
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 8,595,145     $ -     $ (2,686 )   $ 8,592,459  
     Natural gas
     140,704       -       -       140,704  
     Competitive businesses
     -       2,363,877       (25,517 )     2,338,361  
                         Total
     8,735,849       2,363,877       (28,203 )     11,071,524  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     2,189,840       334,896       (878 )     2,523,859  
          Purchased power
     1,472,923       57,078       (42,686 )     1,487,315  
          Nuclear refueling outage expenses
     105,227       150,290       -       255,516  
          Asset impairment
     -       355,524       -       355,524  
          Other operation and maintenance
     1,992,590       929,057       12,000       2,933,646  
     Decommissioning
     110,213       83,019       -       193,233  
     Taxes other than income taxes
     435,127       111,317       1,517       547,961  
     Depreciation and amortization
     925,933       187,028       4,571       1,117,532  
     Other regulatory charges (credits) - net
     211,452       -       -       211,452  
                         Total
     7,443,305       2,208,209       (25,476 )     9,626,038  
                                 
     Gain on sale of business
     -       -       -       -  
                                 
OPERATING INCOME
     1,292,544       155,668       (2,727 )     1,445,486  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     91,323       -       -       91,323  
     Interest and investment income
     165,416       145,762       (167,939 )     143,239  
     Miscellaneous - net
     (28,739 )     (28,181 )     (10,940 )     (67,861 )
                          Total
     228,000       117,581       (178,879 )     166,701  
                                 
INTEREST EXPENSE
                                
     Interest expense
     500,055       23,037       39,039       562,131  
     Allowance for borrowed funds used during construction
     (38,750 )     -       -       (38,750 )
                         Total
     461,305       23,037       39,039       523,381  
                                 
INCOME BEFORE INCOME TAXES
     1,059,239       250,212       (220,645 )     1,088,806  
                                 
Income taxes
     36,814       50,111       34,927       121,852  
                                 
CONSOLIDATED NET INCOME
     1,022,425       200,101       (255,572 )     966,954  
                                 
Preferred dividend requirements of subsidiaries
     17,329       2,562       970       20,861  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 1,005,096     $ 197,539     $ (256,542 )   $ 946,093  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 5.68     $ 1.12     $ (1.45 )   $ 5.35  
   DILUTED
   $ 5.65     $ 1.11     $ (1.44 )   $ 5.32  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             176,944,489  
   DILUTED
                             177,975,165  
                                 
*Totals may not foot due to rounding.
                                


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended March 31, 2011
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 8,602,367     $ -     $ (2,762 )   $ 8,599,605  
     Natural gas
     172,754       -       -       172,754  
     Competitive businesses
     -       2,515,903       (18,824 )     2,497,079  
                         Total
     8,775,121       2,515,903       (21,586 )     11,269,438  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     2,177,367       291,463       (1,224 )     2,467,606  
          Purchased power
     1,516,815       63,798       (33,482 )     1,547,131  
          Nuclear refueling outage expenses
     107,075       150,744       -       257,819  
          Asset impairment
     -       -       -       -  
          Other operation and maintenance
     1,961,925       996,487       (35,752 )     2,922,661  
     Decommissioning
     106,000       109,426       -       215,426  
     Taxes other than income taxes
     425,132       98,424       564       524,120  
     Depreciation and amortization
     895,185       165,898       4,493       1,065,575  
     Other regulatory charges (credits) - net
     11,718       -       -       11,718  
                         Total
     7,201,217       1,876,240       (65,401 )     9,012,056  
                                 
     Gain on sale of business
     -       44,173       -       44,173  
                                 
OPERATING INCOME
     1,573,904       683,836       43,815       2,301,555  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     63,374       -       -       63,374  
     Interest and investment income
     181,260       151,404       (170,049 )     162,615  
     Miscellaneous - net
     (24,328 )     (22,458 )     (10,215 )     (57,001 )
                          Total
     220,306       128,946       (180,264 )     168,988  
                                 
INTEREST EXPENSE
                                
     Interest expense
     519,860       24,619       22,603       567,082  
     Allowance for borrowed funds used during construction
     (35,512 )     -       -       (35,511 )
                         Total
     484,348       24,619       22,603       531,571  
                                 
INCOME BEFORE INCOME TAXES
     1,309,862       788,163       (159,052 )     1,938,972  
                                 
Income taxes
     454,461       266,050       (86,707 )     633,803  
                                 
CONSOLIDATED NET INCOME
     855,401       522,113       (72,345 )     1,305,169  
                                 
Preferred dividend requirements of subsidiaries
     17,331       2,732       -       20,063  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 838,070     $ 519,381     $ (72,345 )   $ 1,285,106  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 4.57     $ 2.83     $ (0.39 )   $ 7.01  
   DILUTED
   $ 4.53     $ 2.80     $ (0.39 )   $ 6.94  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             183,453,875  
   DILUTED
                             185,046,811  
                                 
*Totals may not foot due to rounding.
                                
                                 


 
 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended March 31, 2012 vs. 2011
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
Utility
    
Entergy Wholesale Commodities
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ (7,222 )   $ -     $ 76     $ (7,146 )
     Natural gas
     (32,050 )     -       -       (32,050 )
     Competitive businesses
     -       (152,026 )     (6,693 )     (158,718 )
                         Total
     (39,272 )     (152,026 )     (6,617 )     (197,914 )
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     12,473       43,433       346       56,253  
          Purchased power
     (43,892 )     (6,720 )     (9,204 )     (59,816 )
          Nuclear refueling outage expenses
     (1,848 )     (454 )     -       (2,303 )
          Asset impairment
     -       355,524       -       355,524  
          Other operation and maintenance
     30,665       (67,430 )     47,752       10,985  
     Decommissioning
     4,213       (26,407 )     -       (22,193 )
     Taxes other than income taxes
     9,995       12,893       953       23,841  
     Depreciation and amortization
     30,748       21,130       78       51,957  
     Other regulatory charges (credits )- net
     199,734       -       -       199,734  
                         Total
     242,088       331,969       39,925       613,982  
                                 
     Gain on sale of business
     -       (44,173 )     -       (44,173 )
                                 
OPERATING INCOME
     (281,360 )     (528,168 )     (46,542 )     (856,069 )
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     27,949       -       -       27,949  
     Interest and investment income
     (15,844 )     (5,642 )     2,110       (19,376 )
     Miscellaneous - net
     (4,411 )     (5,723 )     (725 )     (10,860 )
                          Total
     7,694       (11,365 )     1,385       (2,287 )
                                 
INTEREST EXPENSE
                                
     Interest expense
     (19,805 )     (1,582 )     16,436       (4,951 )
     Allowance for borrowed funds used during construction
     (3,238 )     -       -       (3,239 )
                         Total
     (23,043 )     (1,582 )     16,436       (8,190 )
                                 
INCOME BEFORE INCOME TAXES
     (250,623 )     (537,951 )     (61,593 )     (850,166 )
                                 
Income taxes
     (417,647 )     (215,939 )     121,634       (511,951 )
                                 
CONSOLIDATED NET INCOME
     167,024       (322,012 )     (183,227 )     (338,215 )
                                 
Preferred dividend requirements of subsidiaries
     (2 )     (170 )     970       798  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 167,026     $ (321,842 )   $ (184,197 )   $ (339,013 )
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.11     $ (1.71 )   $ (1.06 )   $ (1.66 )
   DILUTED
   $ 1.12     $ (1.69 )   $ (1.05 )   $ (1.62 )
                                 
                                 
*Totals may not foot due to rounding.
                                
                                 


 
 
 

Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Three Months Ended March 31, 2012 vs. 2011
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2012
    
2011
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income (loss)
   $ (146,740 )   $ 253,678     $ (400,418 )
Adjustments to reconcile consolidated net income to net cash flow
                        
provided by operating activities:
                        
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     450,009       422,411       27,598  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     38,858       173,784       (134,926 )
  Asset impairment
     355,524       -       355,524  
  Changes in working capital:
                        
     Receivables
     156,202       102,711       53,491  
     Fuel inventory
     (20,213 )     (12,508 )     (7,705 )
     Accounts payable
     (145,599 )     (154,398 )     8,799  
     Prepaid taxes and taxes accrued
     (89,583 )     (63,918 )     (25,665 )
     Interest accrued
     (32,194 )     (67,978 )     35,784  
     Deferred fuel
     77,405       (66,548 )     143,953  
     Other working capital accounts
     (34,753 )     (102,294 )     67,541  
  Changes in provisions for estimated losses
     (15,030 )     (779 )     (14,251 )
  Changes in other regulatory assets
     60,857       48,889       11,968  
  Changes in pensions and other postretirement liabilities
     (4,764 )     (190,958 )     186,194  
  Other
     (49,479 )     (18,991 )     (30,488 )
Net cash flow provided by operating activities
     600,500       323,101       277,399  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (563,539 )     (486,561 )     (76,978 )
Allowance for equity funds used during construction
     25,448       17,289       8,159  
Nuclear fuel purchases
     (201,059 )     (300,975 )     99,916  
Changes in securitization account
     940       6,360       (5,420 )
NYPA value sharing payment
     (72,000 )     (72,000 )     -  
Payments to storm reserve escrow account
     (1,483 )     (1,736 )     253  
Receipts from storm reserve escrow account
     861       -       861  
Decrease (increase) in other investments
     93,786       (21,212 )     114,998  
Proceeds from nuclear decommissioning trust fund sales
     535,551       492,682       42,869  
Investment in nuclear decommissioning trust funds
     (567,780 )     (530,672 )     (37,108 )
Net cash flow used in investing activities
     (749,275 )     (896,825 )     147,550  
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     1,034,945       411,444       623,501  
    Preferred stock
     51,000       -       51,000  
    Common stock and treasury stock
     32,826       12,280       20,546  
  Retirement of long-term debt
     (859,648 )     (278,084 )     (581,564 )
  Repurchase of common stock
     -       (54,404 )     54,404  
  Changes in credit borrowings - net
     32,782       68,244       (35,462 )
  Dividends paid:
                        
     Common stock
     (146,674 )     (148,678 )     2,004  
     Preferred stock
     (5,582 )     (5,015 )     (567 )
Net cash flow provided by financing activities
     139,649       5,787       133,862  
                         
Effect of exchange rates on cash and cash equivalents
     (310 )     (298 )     (12 )
                         
Net increase (decrease) in cash and cash equivalents
     (9,436 )     (568,235 )     558,799  
                         
Cash and cash equivalents at beginning of period
     694,438       1,294,472       (600,034 )
                         
Cash and cash equivalents at end of period
   $ 685,002     $ 726,237     $ (41,235 )
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 134,655     $ 164,563     $ (29,908 )
     Income taxes
   $ 35,992     $ (4,380 )   $ 40,372  
                         
                         
                         


 
 
 

Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Twelve Months Ended March 31, 2012 vs. 2011
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2012
    
2011
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 966,954     $ 1,305,169     $ (338,215 )
Adjustments to reconcile consolidated net income to net cash flow
                        
provided by operating activities:
                        
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     1,773,053       1,704,310       68,743  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     (414,955 )     759,238       (1,174,193 )
  Asset impairment
     355,524       -       355,524  
  Gain on sale of business
     -       (44,173 )     44,173  
  Changes in working capital:
                        
     Receivables
     81,582       (40,759 )     122,341  
     Fuel inventory
     (2,312 )     (16,849 )     14,537  
     Accounts payable
     (123,171 )     141,487       (264,658 )
     Prepaid taxes and taxes accrued
     554,377       (165,868 )     720,245  
     Interest accrued
     1,612       (13,651 )     15,263  
     Deferred fuel
     88,267       (58,603 )     146,870  
     Other working capital accounts
     109,416       (297,185 )     406,601  
  Changes in provisions for estimated losses
     (25,337 )     300,375       (325,712 )
  Changes in other regulatory assets
     (661,276 )     454,545       (1,115,821 )
  Changes in pensions and other postretirement liabilities
     1,148,655       (230,918 )     1,379,573  
  Other
     (446,173 )     (222,201 )     (223,972 )
Net cash flow provided by operating activities
     3,406,216       3,574,917       (168,701 )
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (2,117,005 )     (2,013,371 )     (103,634 )
Allowance for equity funds used during construction
     94,411       63,374       31,037  
Nuclear fuel purchases
     (541,577 )     (643,350 )     101,773  
Payment for purchase of plant
     (646,137 )     -       (646,137 )
Proceeds from sale of assets and businesses
     6,531       218,496       (211,965 )
Insurance proceeds received for property damages
     -       7,894       (7,894 )
Changes in securitization account
     (12,680 )     (1,645 )     (11,035 )
NYPA value sharing payment
     (72,000 )     (72,000 )     -  
Payments to storm reserve escrow account
     (6,172 )     (296,741 )     290,569  
Receipts from storm reserve escrow account
     861       -       861  
Decrease (increase) in other investments
     103,375       (84,356 )     187,731  
Proceeds from nuclear decommissioning trust fund sales
     1,403,215       2,328,284       (925,069 )
Investment in nuclear decommissioning trust funds
     (1,512,125 )     (2,462,185 )     950,060  
Net cash flow used in investing activities
     (3,299,303 )     (2,955,600 )     (343,703 )
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     3,614,382       4,239,593       (625,211 )
    Preferred stock
     51,000       -       51,000  
    Common stock and treasury stock
     66,731       57,365       9,366  
  Retirement of long-term debt
     (3,018,936 )     (4,355,922 )     1,336,986  
  Repurchase of common stock
     (180,228 )     (932,980 )     752,752  
  Redemption of subsidiary common and preferred stock
     (30,308 )     -       (30,308 )
  Changes in credit borrowings - net
     (41,963 )     73,100       (115,063 )
  Dividends paid:
                        
     Common stock
     (587,601 )     (610,640 )     23,039  
     Preferred stock
     (21,500 )     (20,063 )     (1,437 )
Net cash flow used in financing activities
     (148,423 )     (1,549,547 )     1,401,124  
                         
Effect of exchange rates on cash and cash equivalents
     275       (567 )     842  
                         
Net increase (decrease) in cash and cash equivalents
     (41,235 )     (930,797 )     889,562  
                         
Cash and cash equivalents at beginning of period
     726,237       1,657,034       (930,797 )
                         
Cash and cash equivalents at end of period
   $ 685,002     $ 726,237     $ (41,235 )
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 502,363     $ 568,196     $ (65,833 )
     Income taxes
   $ 38,330     $ 29,149     $ 9,181