-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HynqoAvcdKb37tRxfoGs/U+wuYnZh3AX72cdT/7CJt6zsWyd3I5Ldj2iBg/XlSeg TytbwVcMN1JZiBaeMSpCFw== 0000065984-00-000058.txt : 20000515 0000065984-00-000058.hdr.sgml : 20000515 ACCESSION NUMBER: 0000065984-00-000058 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 15 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000512 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY CORP /DE/ CENTRAL INDEX KEY: 0000065984 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 721229752 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-11299 FILM NUMBER: 629894 BUSINESS ADDRESS: STREET 1: 639 LOYOLA AVE CITY: NEW ORLEANS STATE: LA ZIP: 70113 BUSINESS PHONE: 5045295262 MAIL ADDRESS: STREET 1: PO BOX 61000 CITY: NEW ORLEANS STATE: LA ZIP: 70161 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY GSU HOLDINGS INC /DE/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY CORP /FL/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: MIDDLE SOUTH UTILITIES INC DATE OF NAME CHANGE: 19890521 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY ARKANSAS INC CENTRAL INDEX KEY: 0000007323 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 710005900 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-10764 FILM NUMBER: 629895 BUSINESS ADDRESS: STREET 1: 425 WEST CAPITOL AVE STREET 2: 40TH FLOOR CITY: LITTLE ROCK STATE: AR ZIP: 72201 BUSINESS PHONE: 5013774000 MAIL ADDRESS: STREET 1: P O BOX 551 CITY: LITTLE ROCK STATE: AR ZIP: 72203 FORMER COMPANY: FORMER CONFORMED NAME: ARKANSAS POWER & LIGHT CO DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY GULF STATES INC CENTRAL INDEX KEY: 0000044570 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 740662730 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-27031 FILM NUMBER: 629896 BUSINESS ADDRESS: STREET 1: 350 PINE ST CITY: BEAUMONT STATE: TX ZIP: 77701 BUSINESS PHONE: 4098386631 MAIL ADDRESS: STREET 1: 350 PINE ST CITY: BEAUMONT STATE: TX ZIP: 77701 FORMER COMPANY: FORMER CONFORMED NAME: GULF STATES UTILITIES CO DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY LOUISIANA INC CENTRAL INDEX KEY: 0000060527 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 720245590 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-08474 FILM NUMBER: 629897 BUSINESS ADDRESS: STREET 1: 639 LOYOLA AVE CITY: NEW ORLEANS STATE: LA ZIP: 70113 BUSINESS PHONE: 5045953100 MAIL ADDRESS: STREET 1: PO BOX 61000 CITY: NEW ORLEANS STATE: LA ZIP: 70161 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY MISSISSIPPI INC CENTRAL INDEX KEY: 0000066901 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 640205830 STATE OF INCORPORATION: MS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-00320 FILM NUMBER: 629898 BUSINESS ADDRESS: STREET 1: 308 EAST PEARL STREET CITY: JACKSON STATE: MS ZIP: 39201 BUSINESS PHONE: 6013685000 MAIL ADDRESS: STREET 1: 308 EAST PEARL STREET CITY: JACKSON STATE: MI ZIP: 39201 FORMER COMPANY: FORMER CONFORMED NAME: MISSISSIPPI POWER & LIGHT CO DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY NEW ORLEANS INC CENTRAL INDEX KEY: 0000071508 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 720273040 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-05807 FILM NUMBER: 629899 BUSINESS ADDRESS: STREET 1: 639 LOYOLA AVE CITY: NEW ORLEANS STATE: LA ZIP: 70113 BUSINESS PHONE: 5045295262 MAIL ADDRESS: STREET 1: PO BOX 61000 CITY: NEW ORL STATE: LA ZIP: 70161 FORMER COMPANY: FORMER CONFORMED NAME: NEW ORLEANS PUBLIC SERVICE INC DATE OF NAME CHANGE: 19920703 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYSTEM ENERGY RESOURCES INC CENTRAL INDEX KEY: 0000202584 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 720752777 STATE OF INCORPORATION: AR FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09067 FILM NUMBER: 629900 BUSINESS ADDRESS: STREET 1: ECHELON ONE STREET 2: 1340 ECHELON PKWY CITY: JACKSON STATE: MS ZIP: 39213 BUSINESS PHONE: 6013685000 MAIL ADDRESS: STREET 1: PO BOX 31995 CITY: JACKSON STATE: MS ZIP: 39286-1995 FORMER COMPANY: FORMER CONFORMED NAME: MIDDLE SOUTH ENERGY INC DATE OF NAME CHANGE: 19860803 10-Q 1 ___________________________________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2000 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission Registrant, State of Incorporation, I.R.S. Employer File Number Address of Principal Executive Identification Offices and Telephone Number No. 1-11299 ENTERGY CORPORATION 72-1229752 (a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000 1-10764 ENTERGY ARKANSAS, INC. 71-0005900 (an Arkansas corporation) 425 West Capitol Avenue, 40th Floor Little Rock, Arkansas 72201 Telephone (501) 377-4000 1-2703 ENTERGY GULF STATES, INC. 74-0662730 (a Texas corporation) 350 Pine Street Beaumont, Texas 77701 Telephone (409) 838-6631 1-8474 ENTERGY LOUISIANA, INC. 72-0245590 (a Louisiana corporation) 4809 Jefferson Highway Jefferson, Louisiana 70121 Telephone (504) 840-2734 0-320 ENTERGY MISSISSIPPI, INC. 64-0205830 (a Mississippi corporation) 308 East Pearl Street Jackson, Mississippi 39201 Telephone (601) 368-5000 0-5807 ENTERGY NEW ORLEANS, INC. 72-0273040 (a Louisiana corporation) 1600 Perdido Building New Orleans, Louisiana 70112 Telephone (504) 670-3674 1-9067 SYSTEM ENERGY RESOURCES, INC. 72-0752777 (an Arkansas corporation) Echelon One 1340 Echelon Parkway Jackson, Mississippi 39213 Telephone (601) 368-5000 ___________________________________________________________________________ Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes X No Common Stock Outstanding Outstanding at April 30, 2000 Entergy Corporation ($0.01 par value) 229,974,723 This combined Quarterly Report on Form 10-Q is separately filed by Entergy Corporation, Entergy Arkansas, Inc., Entergy Gulf States, Inc., Entergy Louisiana, Inc., Entergy Mississippi, Inc., Entergy New Orleans, Inc., and System Energy Resources, Inc. Information contained herein relating to any individual company is filed by such company on its own behalf. Each company reports herein only as to itself and makes no other representations whatsoever as to any other company. This combined Quarterly Report on Form 10-Q supplements and updates the Annual Report on Form 10-K for the calendar year ended December 31, 1999, filed by the individual registrants with the SEC, and should be read in conjunction therewith. Forward Looking Information The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that forward-looking statements contained herein with respect to the revenues, earnings, performance, strategies, prospects and other aspects of the business of Entergy Corporation, Entergy Arkansas, Inc., Entergy Gulf States, Inc., Entergy Louisiana, Inc., Entergy Mississippi, Inc., Entergy New Orleans, Inc., System Energy Resources, Inc., and their affiliated companies may involve risks and uncertainties. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties relating to: the effects of weather, the performance of generating units and transmission systems, the possession of nuclear materials, fuel prices and availability, the effects of regulatory decisions and changes in law, litigation, capital spending requirements, the onset of competition, advances in technology, changes in accounting standards, corporate restructuring and changes in capital structure, movements in the markets for electricity and other energy- related commodities, changes in interest rates and in financial and foreign currency markets generally, changes in corporate strategies, and other factors. ENTERGY CORPORATION AND SUBSIDIARIES INDEX TO QUARTERLY REPORT ON FORM 10-Q March 31, 2000 Page Number Definitions 1 Management's Financial Discussion and Analysis - Liquidity and Capital Resources 3 Management's Financial Discussion and Analysis - Significant Factors and Known Trends 7 Results of Operations and Financial Statements: Entergy Corporation and Subsidiaries: Results of Operations 9 Consolidated Statements of Income 13 Consolidated Statements of Cash Flows 14 Consolidated Balance Sheets 16 Consolidated Statements of Retained Earnings, Comprehensive Income, and Paid-in Capital 18 Selected Operating Results 19 Entergy Arkansas, Inc.: Results of Operations 20 Income Statements 22 Statements of Cash Flows 23 Balance Sheets 24 Selected Operating Results 26 Entergy Gulf States, Inc.: Results of Operations 27 Income Statements 29 Statements of Cash Flows 31 Balance Sheets 32 Selected Operating Results 34 Entergy Louisiana, Inc.: Results of Operations 35 Income Statements 37 Statements of Cash Flows 39 Balance Sheets 40 Selected Operating Results 42 Entergy Mississippi, Inc.: Results of Operations 43 Income Statements 45 Statements of Cash Flows 47 Balance Sheets 48 Selected Operating Results 50 Entergy New Orleans, Inc.: Results of Operations 51 Income Statements 53 Statements of Cash Flows 55 Balance Sheets 56 Selected Operating Results 58 System Energy Resources, Inc.: Results of Operations 59 Income Statements 60 Statements of Cash Flows 61 Balance Sheets 62 Notes to Financial Statements for Entergy Corporation and Subsidiaries 64 Part II: Item 1. Legal Proceedings 70 Item 5. Other Information 71 Item 6. Exhibits and Reports on Form 8-K 71 Signature 73 DEFINITIONS Certain abbreviations or acronyms used in the text are defined below: Abbreviation or Acronym Term AFUDC Allowance for Funds Used During Construction ALJ Administrative Law Judge ANO 1 and 2 Units 1 and 2 of Arkansas Nuclear One Steam Electric Generating Station (nuclear), owned by Entergy Arkansas APSC Arkansas Public Service Commission Board Board of Directors of Entergy Corporation Cajun Cajun Electric Power Cooperative, Inc. Capital Funds Agreement Agreement, dated as of June 21, 1974, as amended, between System Energy and Entergy Corporation, and the assignments thereof CitiPower CitiPower Pty., an electric distribution company serving Melbourne, Australia and surrounding suburbs, which was acquired by Entergy effective January 5, 1996, and was sold by Entergy effective December 31, 1998 Council Council of the City of New Orleans, Louisiana domestic utility companies Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans, collectively EWG Exempt wholesale generator under PUHCA Entergy Entergy Corporation and its various direct and indirect subsidiaries Entergy Arkansas Entergy Arkansas, Inc., an Arkansas corporation Entergy Corporation Entergy Corporation, a Delaware corporation Entergy Gulf States Entergy Gulf States, Inc., a Texas corporation (including wholly owned subsidiaries - Varibus Corporation, GSG&T, Inc., Prudential Oil & Gas, Inc., and Southern Gulf Railway Company) Entergy Louisiana Entergy Louisiana, Inc., a Louisiana corporation Entergy Mississippi Entergy Mississippi, Inc., a Mississippi corporation Entergy New Orleans Entergy New Orleans, Inc., a Louisiana corporation FERC Federal Energy Regulatory Commission FUCO an exempt foreign utility company under PUHCA Form 10-K The combined Annual Report on Form 10-K for the year ended December 31, 1999 of Entergy, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy Grand Gulf 1 Unit No. 1 of the Grand Gulf Nuclear Generation Plant London Electricity London Electricity plc - a regional electric company serving London, England, which was acquired by Entergy London Investments plc, effective February 1, 1997, and was sold by Entergy effective December 4, 1998 LPSC Louisiana Public Service Commission MPSC Mississippi Public Service Commission MW Megawatt(s) NRC Nuclear Regulatory Commission Pilgrim Pilgrim Nuclear Station, 670 MW facility located in Plymouth, Massachusetts purchased in July 1999 from Boston Edison by Entergy's non-utility nuclear power business PUCT Public Utility Commission of Texas PUHCA Public Utility Holding Company Act of 1935, as amended River Bend River Bend Nuclear Generation Plant SEC Securities and Exchange Commission SFAS Statement of Financial Accounting Standards as promulgated by the Financial Accounting Standards Board Abbreviation or Acronym Term System Agreement Agreement, effective January 1, 1983, as modified, among the domestic utility companies relating to the sharing of generating capacity and other power resources System Energy System Energy Resources, Inc., an Arkansas corporation UK The United Kingdom of Great Britain and Northern Ireland Waterford 3 Unit No. 3 (nuclear) of the Waterford Plant ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS LIQUIDITY AND CAPITAL RESOURCES Cash Flows Operations Net cash flow provided by (used in) operations for Entergy, the domestic utility companies, and System Energy for the first quarter of 2000 and 1999 was as follows: First Quarter First Quarter Company 2000 1999 (In Millions) Entergy $310.6 $210.1 Entergy Arkansas $ 17.8 $ 42.2 Entergy Gulf States $ 81.5 $ 74.3 Entergy Louisiana $ 33.9 $ 56.4 Entergy Mississippi $(72.2) $ 16.0 Entergy New Orleans $ 4.5 $ 3.7 System Energy $188.5 $ 40.7 For the first quarter of 2000, competitive businesses provided $14.6 million to consolidated operating cash flow compared with using $50.8 million in the first quarter of 1999. The increase is primarily due to revenues from Pilgrim and less cash used by the power marketing and trading business. Pilgrim was purchased in July 1999 and provided positive operating cash flow in the first quarter of 2000 compared to no cash flow in the first quarter of 1999. The operating cash flows of the domestic utility companies and System Energy were primarily affected by the following money pool activity for the first quarter of 2000: o System Energy's operating cash flow increased primarily due to a decrease in receivables from affiliated companies; and o Entergy Arkansas and Entergy Mississippi issued debt during the first quarter of 2000, the proceeds of which were used in part by each of these companies to pay off borrowings from the money pool and create receivables to them from the money pool, resulting in an overall decrease in their respective operating cash flows. The money pool is an inter-company funding arrangement designed to reduce the domestic utility companies' and System Energy's dependence on external short-term borrowings. The money pool provides a means by which, on a daily basis, the excess funds of Entergy Corporation, the domestic utility companies and System Energy may be used by the domestic utilities or System Energy when they have short-term cash requirements. See "Capital Resources" below for a discussion of the limitations on these borrowings. Investing Activities Net cash used in investing activities increased compared with the first quarter of 1999 due to higher construction expenditures in 2000. The increased expenditures were primarily due to construction of the Saltend and Damhead Creek power plants by Entergy's global power development business and spending on customer service and reliability improvements by the domestic utility companies. Also contributing to the increase in cash used in 2000 were the proceeds from the sale of Entergy Security, Inc. received in January 1999, which decreased the cash used in investing activities in 1999. Offsetting the overall increase in cash used was the maturity of other temporary investments in the first quarter of 2000. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS LIQUIDITY AND CAPITAL RESOURCES Financing Activities Net cash provided by financing activities increased compared to the first quarter of 1999 primarily due to: o the issuance of debt at Entergy Arkansas and Entergy Mississippi; o additional borrowings under Entergy Corporation credit facilities, the proceeds of which were used for general corporate purposes and to make an open-account advance to Entergy Louisiana to repay maturing debt; o increased borrowings under the credit facilities for the construction of the Saltend and Damhead Creek power projects by Entergy's global power development business; and o a reduction in the redemption of preferred stock in the first quarter of 2000 compared to the first quarter of 1999. Partially offsetting the overall increase is the increased repurchase of Entergy Corporation common stock in the first quarter of 2000 compared with the first quarter of 1999. Capital Resources Entergy requires capital resources for: o construction and other capital expenditures; o debt and preferred stock maturities; o capital investments; o funding of subsidiaries; and o dividend and interest payments. Management provides more information on construction expenditures, capital investments, and long-term debt and preferred stock maturities in Notes 5, 6, 7, and 9 to the financial statements in the Form 10-K. Entergy's sources of funds to meet its capital requirements include: o internally generated funds; o cash on hand; o debt or preferred stock issuances; o bank financing under new or existing facilities; o short-term borrowings; and o sales of assets. Certain of the domestic utility companies have issued or expect to issue debt in 2000, the proceeds of which have been or will be used for general corporate purposes, including capital expenditures, the retirement of short-term indebtedness, and, in the case of Entergy Gulf States, the mandatory redemption of preference stock. See Note 4 to the financial statements for details regarding issuances of debt by Entergy Mississippi and Entergy Arkansas in the first quarter of 2000. All debt and common and preferred stock issuances require prior regulatory approval. Preferred stock and debt issuances are subject to issuance tests set forth in corporate charters, bond indentures, and other agreements. The domestic utility companies have sufficient capacity under these issuance tests to consummate the financings planned for the remainder of 2000. The domestic utility companies may also establish special purpose trusts or limited partnerships as financing subsidiaries for the purpose of issuing preferred securities. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS LIQUIDITY AND CAPITAL RESOURCES The domestic utility companies and System Energy expect to continue refinancing or redeeming higher cost debt and preferred stock prior to maturity, to the extent market conditions and interest and dividend rates are favorable. Short-term borrowings by the domestic utility companies and System Energy are limited to amounts authorized by the SEC. The current SEC-authorized limit of $1.078 billion for these companies is effective through November 30, 2001. Borrowings from the money pool and external borrowings combined may not exceed the SEC-authorized limit. As of March 31, 2000, only Entergy Gulf States, Entergy Louisiana, and Entergy New Orleans had borrowings outstanding from the money pool, in the amounts of $40.9 million, $40.7 million, and $6.4 million, respectively. Other Entergy subsidiaries have SEC authorization to borrow from Entergy Corporation, through the money pool, or from external sources in an aggregate principal amount up to $265 million. These companies had $113.6 million of outstanding borrowings from the money pool as of March 31, 2000. Some of these borrowings are restricted as to use and are collaterized by certain assets. As of March 31, 2000, Entergy Corporation had the following short-term credit facilities: o a $250 million bank credit facility under which $230 million of borrowings were outstanding; and o a 364-day term loan in the amount of $120 million, all of which was outstanding. The 364-day term loan was obtained on February 25, 2000 and currently bears interest at an annual rate of 6.96%. The proceeds were used by Entergy Corporation to make an open-account advance in the amount of $100 million to Entergy Louisiana to enable it to repay maturing debt. Entergy Corporation used the remaining proceeds for general corporate purposes and working capital needs. Entergy Corporation is expanding its $250 million bank credit facility to permit borrowings up to $500 million. It is anticipated that this expansion will become effective during May 2000, and an additional $120 million will be drawn to repay the 364-day term loan. Entergy's ability to invest in domestic and foreign generation businesses is subject to the SEC's regulations under PUHCA. These regulations limit to 50% of consolidated retained earnings the total amount that Entergy may invest in domestic and foreign generation businesses at the time an investment is made. Using the proceeds from the sales of London Electricity and CitiPower in 1998, Entergy's FUCO and EWG subsidiaries have the ability to make significant additional investments in domestic and foreign generation businesses without the need of further investment by Entergy Corporation. However, Entergy has pending at the SEC an application to increase its permissible EWG and FUCO investments to 100% of consolidated retained earnings. Entergy's global power development business is currently constructing two combined-cycle gas turbine merchant power plants in the UK, Saltend and Damhead Creek. These projects are discussed in "MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS - LIQUIDITY AND CAPITAL RESOURCES" in the Form 10-K. The financing of the construction of these two power plants is discussed in Note 7 to the financial statements in the Form 10-K. In October 1999, Entergy's global power development business obtained an option to acquire twenty-four GE7FA advanced technology gas turbines, four steam turbines, and eight GE7EA advanced technology gas turbines. The financing of these turbines is discussed in "MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS - LIQUIDITY AND CAPITAL RESOURCES" in the Form 10-K. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS LIQUIDITY AND CAPITAL RESOURCES In March 2000, Entergy's non-utility nuclear business, signed an agreement, subject to regulatory approvals, for the acquisition of the New York Power Authority's (NYPA) 825 MW James A. FitzPatrick nuclear power plant located near Oswego, New York and NYPA's 980 MW Indian Point 3 nuclear power plant located in Westchester County, New York. Management expects to close the acquisition by the end of the fourth quarter of 2000. Entergy will pay $50 million in cash at the closing of the purchase, plus seven annual installments of approximately $108 million commencing one year from the date of the closing, and eight annual installments of $20 million commencing eight years from the date of the closing. Entergy currently projects that these installments will be paid primarily from the proceeds of the sale of power from the plants and that Entergy will provide an additional $100 million of funding. Subject to certain conditions, Entergy's non-utility nuclear business has agreed to pay NYPA up to $10 million annually for up to 10 years, beginning on the second anniversary date of such acquisition, if Entergy acquires ownership of the Indian Point 2 nuclear power plant located in Westchester County, New York. If Entergy acquires the Nine Mile Point nuclear power plants (referred to in the following paragraph), it will pay NYPA up to $2 million annually for up to 10 years, commencing on the second anniversary date of such acquisition. NYPA also will be paid $2.5 million annually by each of the two Entergy subsidiaries that acquire the NYPA plants for up to twenty years if the NRC grants an extension of the current nuclear operating licenses for the plants. These payments would commence on the first anniversary of the expiration of the respective current licenses and would continue during the extension period. In December 1999, an Entergy subsidiary signed an agreement with Rochester Gas and Electric Corporation (RG&E) to lease and operate the Nine Mile Point 1 and 2 nuclear power plants, totaling 1,754 MW, located in Scriba, New York. Nine Mile Point 1 is owned by Niagara Mohawk Power Corporation (NiMo), and Nine Mile Point 2 is co-owned by RG&E, NiMo, New York State Electric & Gas Corporation (NYSEG), Long Island Lighting Company doing business as LIPA, and Central Hudson Gas & Electric Corporation. The lease and operating agreement is subject to RG&E's acquisition of NiMo and NYSEG's ownership interests in the plants under RG&E's right of first refusal and is subject to approval by the New York Public Service Commission (NYPSC). NiMo and NYSEG initiated a proceeding before the NYPSC seeking authorization for the sale of their ownership interests in Nine Mile Point 1 and 2 to a third party. Entergy intervened in the proceedings, but on April 25, 2000, NiMo and NYSEG moved to withdraw the request for authority to transfer their interests in the Nine Mile plants on the grounds that there are multiple parties who wish to acquire them. The NYPSC encouraged the owners of the Nine Mile plants to determine the market value of the plants through an open bid process, which will likely take place during the summer of 2000. Entergy expects to participate in the bidding to acquire the Nine Mile plants, or will seek a contract to lease and operate them. In April 2000, Entergy and Koch Industries, Inc. announced plans for the formation of a new joint venture company to be called Entergy- Koch L.P. Entergy will contribute to the venture its power marketing and trading business in the United States and the United Kingdom as well as $350 million in cash. Of the $350 million, approximately $200 million will be funded with debt that is non-recourse to Entergy Corporation, and $150 million will be provided from Entergy's cash on hand. Koch Industries, Inc. will contribute to the venture its 10,000-mile Koch Gateway Pipeline, gas storage facilities including the Bisteneau storage facility near Shreveport, Louisiana, and Koch Energy Trading which markets and trades electricity, gas, weather derivatives and other energy-related commodities and services. The parties will have equal ownership interests in Entergy-Koch L.P., which will be governed by an eight-member board of directors. Entergy will have the right to appoint four members of the board. The venture, which will require prior approval from FERC and from the SEC under PUHCA, is expected to become operational by the end of 2000. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS LIQUIDITY AND CAPITAL RESOURCES Entergy has made investments in energy-related businesses, including power marketing and trading. Under PUHCA, the SEC imposes a limit equal to 15% of consolidated capitalization on the amount that may be invested in such "energy-related" businesses without specific SEC approval. Entergy's available capacity to make additional investments at March 31, 2000 was approximately $2.2 billion. The available capacity will be partially reduced by Entergy's investment in its recently announced joint venture with Koch Industries discussed above. In the first quarter of 2000, Entergy Corporation paid $71 million in cash dividends on its common stock and received dividend payments totaling $63 million from subsidiaries. Declarations of dividends on Entergy's common stock are made at the discretion of the Board. The Board evaluates the level of dividends based upon Entergy's earnings and financial strength. Dividend restrictions are discussed in Note 8 to the financial statements in the Form 10-K. In October 1998, the Board approved a plan for the repurchase of Entergy common stock through December 31, 2001 to fulfill the requirements of various compensation and benefit plans. This stock repurchase plan provides for purchases in the open market of up to 5 million shares, for an aggregate consideration of up to $250 million. In July 1999, the Board approved the commitment of up to an additional $750 million for the repurchase of Entergy common stock through December 31, 2001. Shares are purchased on a discretionary basis. Entergy also issues shares under its Dividend Reinvestment and Stock Purchase Plan and other compensation and benefit plans. See Note 3 to the financial statements for stock repurchases and issuances made during the first quarter of 2000. See Notes 4, 5, 6, 7, 9, and 10 to the financial statements in the Form 10-K for further discussion of Entergy's capital and refinancing requirements and available lines of credit. Entergy Corporation and System Energy Pursuant to the Capital Funds Agreement, Entergy Corporation has agreed to supply System Energy with sufficient capital to: o maintain System Energy's equity capital at a minimum of 35% of its total capitalization (excluding short-term debt); o permit the continued commercial operation of Grand Gulf 1; o pay in full all System Energy indebtedness for borrowed money when due; and o enable System Energy to make payments on specific System Energy debt, under supplements to the agreement assigning System Energy's rights in the agreement as security for the specific debt. The Capital Funds Agreement and other Grand Gulf 1-related agreements are more thoroughly discussed in Note 9 to the financial statements in the Form 10-K. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS SIGNIFICANT FACTORS AND KNOWN TRENDS See "MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS - SIGNIFICANT FACTORS AND KNOWN TRENDS" in the Form 10-K for a discussion of the increasing competitive pressures facing Entergy and the electric utility industry, as well as market risks and other significant issues affecting Entergy. Set forth below are recent updates to the information contained therein. Domestic Transition to Competition State Regulatory and Legislative Activity Texas In June 1999, the Texas legislature enacted a law providing for competition in the electric utility industry through retail open access. The law provides for retail open access by most electric utilities, including Entergy Gulf States, on January 1, 2002. When retail open access is achieved, the generation business and a new retail electricity provider function will become competitive businesses, but transmission and distribution operations will continue to be regulated. The new retail electricity provider function will be the primary point of contact with customers for most services beyond initiation of electric service and restoration of service following outages. In January 2000, Entergy Gulf States filed a business separation plan with the PUCT as required by the Texas restructuring legislation. The plan provides that Entergy Gulf States will ultimately be divided into a Texas distribution company, a Texas transmission company, a Texas generation company, a Texas retail service provider, and a Louisiana company that will encompass distribution, generation, and transmission operations. Intervenors in the Texas proceeding have, for the most part, expressed opposition to the plan for various reasons. It is not certain whether the plan will be approved as filed, or whether a different plan will be approved by the PUCT. Entergy Gulf States and other parties to the proceeding are in discussions aimed at determining whether there are modifications to the proposed plan that would be acceptable to all concerned parties. The procedural schedule requires Entergy Gulf States to file an amended business separation plan by June 8, 2000. The timing and outcome of this proceeding are uncertain, and additional regulatory approvals from FERC, the SEC, and the LPSC will be required before any business separation plan dividing Entergy Gulf States into a series of new legal entities can be implemented. Pursuant to the Texas restructuring legislation, Entergy Gulf States filed its separated business cost data and proposed transmission, distribution, and competition tariffs with the PUCT on March 31, 2000. This filing also included a proposal for a performance-based enhancement to the authorized rate of return on equity. Management does not agree with the arbitrary level of return on equity set by PUCT rules (200 basis points over the cost of a distribution utility's debt) and has sought a higher return in its separated cost filing. See Note 2 to the financial statements for further information on this filing. Mississippi In May 2000, after two years of studies and hearings, the MPSC announced that it opposed opening the state's retail electricity markets to competition at this time. The MPSC concluded that competition could raise the electric rates paid by residential users. The final decision ultimately lies with the Mississippi Legislature, which has adjourned its 2000 session. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS SIGNIFICANT FACTORS AND KNOWN TRENDS Federal Regulatory Activity See "Part I, Item 1, Competition" in the Form 10-K for a discussion of changes that may result from retail competition and unbundling. In April 2000, the LPSC and the Council filed a complaint with FERC seeking revisions to the System Agreement that they allege are necessary to accommodate the introduction of retail competition in certain jurisdictions served by Entergy and, at the same time, to protect Entergy's Louisiana customers from any adverse impact that may occur due to the introduction of retail competition in some jurisdictions but not others. The LPSC and the Council request that FERC immediately institute a proceeding to permit changes to be adopted prior to January 1, 2002, and request, among other things, that FERC cap certain of the System Agreement obligations of Entergy Gulf States, Entergy Louisiana, and Entergy New Orleans and fix these companies' access to the pool energy at the average level existing for the three years prior to the date that retail access is initiated in Texas and Arkansas. Alternatively, the LPSC and the Council request that FERC require Entergy to provide wholesale power contracts to these companies to satisfy their energy requirements at costs no higher than would have been incurred if retail competition were not implemented. The LPSC and the Council request that the relief be made available for at least eight years after implementation of retail competition or the withdrawal of Entergy Arkansas and Entergy Gulf States from the System Agreement, or until retail access is implemented in Louisiana and New Orleans. In addition, among other things, the LPSC and the Council assert in their complaint that: o unless the requested relief is granted, the restructuring legislation adopted in Texas and Arkansas, to the extent such legislation requires, or has the effect of, altering the rights of parties under the System Agreement, will result in violations of the interstate commerce clause, the due process clause, and the impairment of contracts clause in the U.S. Constitution; and o the failure of the domestic utility companies to honor a right of first refusal with respect to any sale of generating capacity and associated energy under the System Agreement, and any attempt to eliminate such right of first refusal from the System Agreement, would violate the Federal Power Act and constitute a breach of the System Agreement. State and Local Rate Regulation In March 2000, the LPSC ordered Entergy Gulf States to refund approximately $17.7 million based on its fourth post-Merger earnings analysis filed with the LPSC in May 1997. Entergy Gulf States will appeal the order. Entergy Gulf States has provided adequate reserves for its annual earnings reviews based on management's estimates of the outcome of these proceedings. In March 2000, Entergy Mississippi submitted its annual performance-based formula rate plan filing for the 1999 test year. The filing indicated that no change in rate levels was necessary. Continued Application of SFAS 71 and Stranded Cost Exposure See "Continued Application of SFAS 71 and Stranded Cost Exposure" in "MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS - SIGNIFICANT FACTORS AND KNOWN TRENDS" in the Form 10-K for a discussion of the potential effects of discontinuation of SFAS 71 for the generation portion of Entergy's business as well as Entergy's exposure to stranded costs. Because management believes that definitive outcomes have not yet been determined regarding the transition to competition in each of Entergy's jurisdictions, the regulated operations of the domestic utility companies and System Energy continue to apply SFAS 71. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS SIGNIFICANT FACTORS AND KNOWN TRENDS The restructuring laws enacted in Arkansas and Texas provide an opportunity for the recovery of stranded costs following review and approval by the APSC or the PUCT. Nearly all of Entergy's exposure to stranded costs involves commitments that were approved by regulators. The actual amount of costs and obligations that will be identified as stranded will be determined in regulatory proceedings. These proceedings will commence in 2000 in Arkansas and Texas. Entergy Gulf States included an estimate of its Texas stranded costs in its March 31, 2000 filing with the PUCT. Using the model established by the PUCT staff, Entergy Gulf States' estimate of Texas stranded costs is $117.2 million. Entergy Gulf States disagrees with certain of the assumptions and estimates included in the PUCT model and believes that the model understates actual stranded costs. The model offsets potential strandable costs against mitigating factors, including the estimated fair value of existing generation plants, to determine an estimated stranded cost figure. The model, however, does not include estimated River Bend decommissioning costs. The Texas stranded cost filing is discussed more thoroughly in Note 2 to the financial statements. The outcome of the Texas and Arkansas stranded cost proceedings cannot be predicted and will depend upon a number of variables, including the timing of stranded cost determination, the values attributable to certain strandable assets, assumptions concerning future market prices for electricity, and other factors. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Entergy's results of operations are discussed in two business categories, "Domestic Utility Companies and System Energy" and "Competitive Businesses." Domestic Utility Companies and System Energy is Entergy's predominant business segment, contributing 77% of Entergy's operating revenue and 81% of its net income for the first quarter of 2000. Competitive Businesses include the following segments discussed in Note 6 to the financial statements: "power marketing and trading" and "all other." "All other" principally includes global power development, non-utility nuclear power, and the parent holding company, Entergy Corporation. The elimination of power marketing and trading mark-to-market profits on intercompany power transactions is also included in "all other." Net Income Entergy Corporation's consolidated net income increased for the first quarter of 2000 primarily due to: o a $25.2 million increase in net income from the power marketing and trading business primarily resulting from improved trading results and higher expected summer 2000 forward electricity prices affecting the mark-to-market valuations; o an overall $4.8 million increase in net income from the domestic utility companies and System Energy, primarily due to increases in electric operating revenues, a decrease in other operation and maintenance expenses, and a true-up to reflect fuel under-recoveries at Entergy Arkansas. The increase was partially offset by a true-up to reflect fuel over-recoveries at Entergy Gulf States as a result of the PUCT fuel reconciliation settlement and an increase in the effective tax rate; and o an increase in net income from other competitive businesses, primarily resulting from the operation of Pilgrim in 2000, which was acquired in July 1999. The increase was partially offset by a decrease in other income and an increase in the effective tax rate. Net income for the first quarter of 1999 reflected the results of operations for Entergy Security, Inc., Entergy Power Edesur Holdings, and several telecommunications businesses. These businesses were sold between January 1999 and mid-1999, and are therefore not included in 2000's results of operations. Domestic Utility Companies and System Energy Revenues and Sales The changes in electric operating revenues associated with the domestic utility companies for the first quarter of 2000 are as follows: First Quarter Description Increase/(Decrease) (In Millions) Base revenues ($23.8) Rate riders (5.8) Fuel cost recovery 101.3 Sales volume/weather 18.1 Other revenue (including unbilled) 18.4 Sales for resale 6.1 ------ Total $114.3 ====== ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Base revenues Base revenues decreased $23.8 million for the first quarter of 2000 primarily due to provisions for potential rate refunds at Entergy Louisiana. This decrease is partially offset by increased base revenues at Entergy Gulf States due to base rate refunds in 1999 in the Texas jurisdiction. Rate riders Rate rider revenues do not affect net income because they are offset by specific incurred expenses. Rate rider revenues decreased $5.8 million for the first quarter of 2000 as a result of decreased Grand Gulf 1 riders and decreased ANO decommissioning riders at Entergy Arkansas that became effective in January 2000. Fuel cost recovery Fuel cost recovery revenues do not affect net income because they are an increase to revenues that is offset by specific incurred fuel costs. Fuel cost recovery revenues increased $101.3 million for the first quarter of 2000 due to: o increased fuel factors implemented in March and September 1999 in Texas for Entergy Gulf States; o a fuel surcharge implemented in January 2000 in Texas for Entergy Gulf States; o an increase in the energy cost recovery rate that became effective in April 1999 at Entergy Arkansas; o higher fuel prices at Entergy Louisiana due to the increased market price of gas; and o an increase in the energy cost recovery rate at Entergy Mississippi that became effective in January 2000. Sales volume/weather Sales volume increased $18.1 million for the first quarter of 2000 primarily due to: o more favorable weather in Entergy Gulf States' Louisiana service territory as well as increased usage by industrial customers of Entergy Gulf States; and o increased volume of electricity sales to residential and industrial customers at Entergy Louisiana. Other revenue (including unbilled) Other revenue increased $18.4 million for the first quarter of 2000 primarily due to increased unbilled revenue for retail and wholesale customers, and a change in estimated unbilled revenues in June 1999 at the domestic utility companies. The changed estimate more closely aligns the fuel component of unbilled revenues with their regulatory treatment. The change in estimate will not affect comparisons with prior periods after the first quarter of 2000. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Expenses Fuel and purchased power expenses Fuel and purchased power expenses increased $129.5 million for the first quarter of 2000 primarily due to: o a true-up to reflect fuel over-recoveries at Entergy Gulf States, partially offset by an adjustment to increase the deferred fuel balance at Entergy Arkansas; o an increase in the market prices of purchased power and gas in the first quarter of 2000; and o a shift to increased use of higher-priced gas and purchased power at Entergy Gulf States due to scheduled outages at coal and nuclear facilities in the first quarter of 2000. Other operation and maintenance Other operation and maintenance decreased $17.6 million for the first quarter of 2000 primarily due to: o a larger refund of nuclear insurance premiums in 2000 compared to 1999 at Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, and System Energy; and o lower incentive compensation accruals in 2000 compared to 1999. Depreciation and amortization Depreciation and amortization decreased $4.2 million for the first quarter of 2000 primarily due to reduced River Bend depreciation expense at Entergy Gulf States as a result of the write- down of the River Bend abeyed plant required by the Texas rate settlement in June 1999. Other Interest charges Interest on long-term debt decreased $7.0 million for the first quarter of 2000 primarily due to the retirement and refinancing of certain long-term debt at Entergy Gulf States, Entergy Louisiana, and System Energy in 1999. Other interest increased $7.0 million for the first quarter of 2000 primarily due to interest recorded at System Energy for a portion of the potential refund to customers of its proposed rate increase pending at FERC. Competitive Businesses Revenues and Sales Competitive business revenues increased approximately $57 million for the first quarter of 2000 compared with the first quarter of 1999. The increase was primarily due to an increase in sales revenues of $59.7 million for the non-utility nuclear business resulting primarily from the operation of Pilgrim, partially offset by the decrease in revenues in other competitive businesses. The decrease in revenues in other competitive businesses was due to the sales of Entergy Security, Inc. in January 1999 and Entergy Power Edesur Holdings and several telecommunications businesses in June 1999. These businesses contributed to operating revenues in the first quarter of 1999 but not in the first quarter of 2000. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS The power marketing and trading business did not have a material change in revenues. However, the power marketing and trading business had an increase in net income of $25 million for the first quarter of 2000 due to: o decreased purchased power expenses as discussed below; o improved trading performance; and o higher expected summer 2000 forward electricity prices affecting the mark-to-market valuations. Expenses Fuel and purchased power expenses Fuel and purchased power expenses decreased $31 million for the first quarter of 2000 compared with the first quarter of 1999. The decrease is attributable to decreased electricity and gas trading volumes in the power marketing and trading business. The overall decrease was partially offset by an increase in fuel and purchased power expenses related to the operation of Pilgrim. Other operation and maintenance Other operation and maintenance expenses increased $27.4 million for the first quarter of 2000 compared with the first quarter of 1999. The increase is primarily due to expenses incurred by the non- utility nuclear business from the operation of Pilgrim and an increase in the elimination of mark-to-market profits on intercompany power transactions. Partially offsetting the overall increase is a decrease in expenses due to the sales of businesses previously discussed. Other Other income Other income decreased $18 million for the first quarter of 2000 compared with the first quarter of 1999 primarily due to the following: o a $12.5 million ($.6 million net of tax) gain on the sale of Entergy Security, Inc. in January 1999; and o a $7.6 million ($4.9 million net of tax) favorable adjustment to the final sale price of CitiPower in January 1999. Partially offsetting the overall decrease is an increase in other miscellaneous income in the first quarter of 2000. Interest charges Other interest charges increased $5 million for the first quarter of 2000 compared with the first quarter of 1999. The increase was primarily due to the accretion of the decommissioning liability associated with Pilgrim. ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Income Taxes The effective income tax rates for the first quarters of 2000 and 1999 were 43.4% and 38.3%, respectively. The increase was primarily due to the following affecting the first quarter 1999 tax rate: o decreased state income taxes at the power marketing and trading business as a result of net losses; and o recognition of certain foreign tax credits resulting in lower income taxes.
ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands, Except Share Data) OPERATING REVENUES Domestic electric $1,352,896 $1,238,583 Natural gas 45,881 37,731 Steam products - 8,296 Competitive businesses 412,715 355,312 ---------- ---------- TOTAL 1,811,492 1,639,922 ---------- ---------- OPERATING EXPENSES Operating and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 497,754 402,973 Purchased power 369,544 373,799 Nuclear refueling outage expenses 18,557 19,685 Other operation and maintenance 377,410 367,632 Decommissioning 10,938 12,674 Taxes other than income taxes 79,618 83,068 Depreciation and amortization 178,276 184,368 Other regulatory credits (14,605) (16,125) Amortization of rate deferrals 7,396 8,413 ---------- ---------- TOTAL 1,524,888 1,436,487 ---------- ---------- OPERATING INCOME 286,604 203,435 ---------- ---------- OTHER INCOME Allowance for equity funds used during construction 7,695 5,411 Gain on sale of assets - net 517 20,583 Miscellaneous - net 28,982 19,952 ---------- ---------- TOTAL 37,194 45,946 ---------- ---------- INTEREST AND OTHER CHARGES Interest on long-term debt 113,659 122,531 Other interest - net 20,283 8,541 Distributions on preferred securities of subsidiaries 4,709 4,709 Allowance for borrowed funds used during construction (6,088) (4,479) ---------- ---------- TOTAL 132,563 131,302 ---------- ---------- INCOME BEFORE INCOME TAXES 191,235 118,079 Income taxes 82,825 45,173 ---------- ---------- CONSOLIDATED NET INCOME 108,410 72,906 Preferred dividend requirements and other 9,550 10,725 ---------- ---------- EARNINGS APPLICABLE TO COMMON STOCK $98,860 $62,181 ========== ========== Earnings per average common share: Basic and diluted $0.42 $0.25 Dividends declared per common share $0.30 $0.30 Average number of common shares outstanding: Basic 236,608,445 246,579,198 Diluted 236,671,604 246,716,928 See Notes to Financial Statements.
ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For The Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING ACTIVITIES Consolidated net income $108,410 $72,906 Noncash items included in net income: Amortization of rate deferrals 7,396 8,413 Reserve for regulatory adjustments 19,888 (2,265) Other regulatory credits - net (14,605) (16,125) Depreciation, amortization, and decommissioning 189,214 197,042 Deferred income taxes and investment tax credits (30,652) (8,945) Allowance for equity funds used during construction (7,695) (5,411) Gain on sale of assets - net (517) (12,513) Changes in working capital: Receivables 37,462 6,867 Fuel inventory (25,783) (11,212) Accounts payable (27,239) (20,461) Taxes accrued 44,026 32,165 Interest accrued (25,053) (43,865) Deferred fuel 32,626 32,950 Other working capital accounts (4,917) (53,931) Provision for estimated losses and reserves (19,521) 17,490 Changes in other regulatory assets (3,741) (8,487) Other 31,298 25,495 ---------- ---------- Net cash flow provided by operating activities 310,597 210,113 ---------- ---------- INVESTING ACTIVITIES Construction/capital expenditures (388,443) (249,733) Allowance for equity funds used during construction 7,695 5,411 Nuclear fuel purchases (41,215) (33,352) Proceeds from sale/leaseback of nuclear fuel 13,952 23,300 Proceeds from sale of businesses - 215,416 Investment in other nonregulated/nonutility properties - (14,133) Proceeds from other temporary investments 321,351 - Decommissioning trust contributions and realized change in trust assets (12,624) (16,871) Other (226) 3,061 ---------- ---------- Net cash flow used in investing activities (99,510) (66,901) ---------- ---------- See Notes to Financial Statements.
ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For The Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) FINANCING ACTIVITIES Proceeds from the issuance of: Long-term debt 370,465 198,196 Common stock 1,972 1,915 Retirement of long-term debt (103,212) (145,105) Repurchase of common stock (155,981) (12,132) Redemption of preferred stock (2,493) (74,731) Changes in short-term borrowings - net 230,000 (125,500) Dividends paid: Common stock (71,040) (70,362) Preferred stock (7,330) (11,641) ---------- ---------- Net cash flow provided by (used in) financing activities 262,381 (239,360) ---------- ---------- Effect of exchange rates on cash and cash equivalents (1,091) (1,993) ---------- ---------- Net increase (decrease) in cash and cash equivalents 472,377 (98,141) Cash and cash equivalents at beginning of period 1,213,719 1,184,495 ---------- ---------- Cash and cash equivalents at end of period $1,686,096 $1,086,354 ========== ========== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest - net of amount capitalized $156,560 $171,185 Income taxes $35,995 $10,617 Noncash investing and financing activities: Change in unrealized appreciation/(depreciation) of decommissioning trust assets ($9,906) $13,626 See Notes to Financial Statements.
ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $113,365 $108,198 Temporary cash investments - at cost, which approximates market 1,566,629 1,105,521 Special deposits 6,102 - ----------- ----------- Total cash and cash equivalents 1,686,096 1,213,719 ----------- ----------- Other temporary investments - at cost, which approximates market - 321,351 Notes receivable 3,635 2,161 Accounts receivable: Customer 257,729 290,331 Allowance for doubtful accounts (9,507) (9,507) Other 234,947 207,898 Accrued unbilled revenues 274,202 298,616 ----------- ----------- Total receivables 757,371 787,338 ----------- ----------- Deferred fuel costs 208,035 240,661 Fuel inventory - at average cost 117,633 94,419 Materials and supplies - at average cost 393,726 392,403 Rate deferrals 27,450 30,394 Deferred nuclear refueling outage costs 47,180 58,119 Prepayments and other 91,248 78,567 ----------- ----------- TOTAL 3,332,374 3,219,132 ----------- ----------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity 214 214 Decommissioning trust funds 1,247,408 1,246,023 Non-utility property - at cost (less accumulated depreciation) 321,984 317,165 Non-regulated investments 246,240 198,003 Other - at cost (less accumulated depreciation) 17,480 16,714 ----------- ----------- TOTAL 1,833,326 1,778,119 ----------- ----------- UTILITY PLANT Electric 23,237,556 23,163,161 Plant acquisition adjustment 402,863 406,929 Property under capital lease 774,184 768,500 Natural gas 187,632 186,041 Construction work in progress 1,769,202 1,500,617 Nuclear fuel under capital lease 268,220 286,476 Nuclear fuel 110,910 87,693 ----------- ----------- TOTAL UTILITY PLANT 26,750,567 26,399,417 Less - accumulated depreciation and amortization 11,080,253 10,898,661 ----------- ----------- UTILITY PLANT - NET 15,670,314 15,500,756 ----------- ----------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Rate deferrals 12,130 16,581 SFAS 109 regulatory asset - net 1,044,438 1,068,006 Unamortized loss on reacquired debt 197,092 198,631 Other regulatory assets 665,179 637,870 Long-term receivables 31,625 32,260 Other 575,749 533,732 ----------- ----------- TOTAL 2,526,213 2,487,080 ----------- ----------- TOTAL ASSETS $23,362,227 $22,985,087 =========== =========== See Notes to Financial Statements.
ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $175,408 $194,555 Notes payable 350,716 120,715 Accounts payable 591,132 707,678 Customer deposits 166,931 161,909 Taxes accrued 495,418 445,677 Accumulated deferred income taxes 59,853 72,640 Nuclear refueling outage costs 9,246 11,216 Interest accrued 102,687 129,028 Co-owner advances 3,420 7,018 Obligations under capital leases 176,530 178,247 Other 155,292 125,749 ----------- ----------- TOTAL 2,286,633 2,154,432 ----------- ----------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 3,276,922 3,310,340 Accumulated deferred investment tax credits 513,009 519,910 Obligations under capital leases 184,751 205,464 FERC settlement - refund obligation 35,765 37,337 Other regulatory liabilities 200,607 199,139 Decommissioning 714,529 703,453 Transition to competition 164,486 157,034 Regulatory reserves 398,195 378,307 Accumulated provisions 279,192 279,425 Other 655,277 535,156 ----------- ----------- TOTAL 6,422,733 6,325,565 ----------- ----------- Long-term debt 6,885,702 6,612,583 Preferred stock with sinking fund 69,650 69,650 Preference stock 150,000 150,000 Company-obligated mandatorily redeemable preferred securities of subsidiary trusts holding solely junior subordinated deferrable debentures 215,000 215,000 SHAREHOLDERS' EQUITY Preferred stock without sinking fund 335,961 338,455 Common stock, $.01 par value, authorized 500,000,000 shares; issued 247,172,239 shares in 2000 and 247,082,345 shares in 1999 2,472 2,471 Paid-in capital 4,636,474 4,636,163 Retained earnings 2,814,499 2,786,467 Accumulated other comprehensive loss: Cumulative foreign currency translation adjustment (69,489) (68,782) Net unrealized investment losses (9,958) (5,023) Less - treasury stock, at cost (14,962,294 shares in 2000 and 8,045,434 shares in 1999) 377,450 231,894 ----------- ----------- TOTAL 7,332,509 7,457,857 ----------- ----------- Commitments and Contingencies (Notes 1 and 2) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $23,362,227 $22,985,087 =========== =========== See Notes to Financial Statements.
ENTERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF RETAINED EARNINGS, COMPREHENSIVE INCOME, AND PAID-IN CAPITAL For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) RETAINED EARNINGS Retained Earnings - Beginning of period $2,786,467 $2,526,888 Add - Earnings applicable to common stock 98,860 $98,860 62,181 $62,181 Deduct: Dividends declared on common stock 71,658 73,989 Capital stock and other expenses (830) 345 ---------- ---------- Total 70,828 74,334 ---------- ---------- Retained Earnings - End of period $2,814,499 $2,514,735 ========== ========== ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): Balance at beginning of period ($73,805) ($46,739) Foreign currency translation adjustments (707) (707) 379 379 Net unrealized investment losses (4,935) (4,935) - - ---------- ---------- Balance at end of period ($79,447) ($46,360) ========== ------- ========== ------- Comprehensive Income $93,218 $62,560 ======= ======= PAID-IN CAPITAL Paid-in Capital - Beginning of period $4,636,163 $4,630,609 Add - Common stock issuances related to stock 311 431 plans ---------- ---------- Paid-in Capital - End of period $4,636,474 $4,631,040 ========== ========== See Notes to Financial Statements.
ENTERGY CORPORATION AND SUBSIDIARIES SELECTED OPERATING RESULTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) Increase/ Description 2000 1999 (Decrease) % (In Millions) Domestic Utility Electric Operating Revenues: Residential $ 468.2 $ 432.0 $ 36.2 8 Commercial 346.9 316.2 30.7 10 Industrial 453.4 406.7 46.7 11 Governmental 38.8 36.0 2.8 8 -------------------------------- Total retail 1,307.3 1,190.9 116.4 10 Sales for resale 83.2 77.1 6.1 8 Other (37.6) (29.4) (8.2) (28) -------------------------------- Total $ 1,352.9 $ 1,238.6 $ 114.3 9 ================================ Billed Electric Energy Sales (GWH): Residential 6,512 6,417 95 1 Commercial 5,280 5,169 111 2 Industrial 10,617 10,216 401 4 Governmental 586 589 (3) (1) -------------------------------- Total retail 22,995 22,391 604 3 Sales for resale 2,272 2,209 63 3 -------------------------------- Total 25,267 24,600 667 3 ================================ ENTERGY ARKANSAS, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Net Income Net income increased for the first quarter of 2000 primarily due to increased electric operating revenues, decreased other operation and maintenance expenses, and a decrease in fuel expense reflecting a true-up of the deferred fuel balance in the first quarter of 2000, partially offset by an increase in income tax expense. Revenues and Sales The changes in electric operating revenues for the first quarter of 2000 are as follows: First Quarter Description Increase/(Decrease) (In Millions) Base revenues $0.7 Rate riders (6.4) Fuel cost recovery 10.8 Sales volume/weather 1.3 Other revenue (including unbilled) 7.4 Sales for resale 21.1 ----- Total $34.9 ===== Rate riders Rate rider revenues do not affect net income because they are offset by specific incurred expenses. Rate rider revenues decreased for the first quarter of 2000 as a result of decreased Grand Gulf 1 riders and ANO decommissioning riders, both of which became effective in January 2000. Fuel cost recovery Fuel cost recovery revenues do not affect net income because they are an increase to revenues that is offset by specific incurred fuel costs. Fuel cost recovery revenue increased for the first quarter of 2000 primarily due to an increase in the energy cost recovery rate, which became effective in April 1999. The increase in the energy cost recovery rate allows Entergy Arkansas to recover previously under-recovered fuel expenses. Other revenue (including unbilled) Other revenue increased for the first quarter of 2000 primarily due to increased unbilled revenue for retail and wholesale customers, and a change in estimated unbilled revenues in June 1999. The changed estimate more closely aligns the fuel component of unbilled revenues with their regulatory treatment. The change in estimate will not affect comparisons with prior periods after the first quarter of 2000. Comparative impacts are also affected by seasonal variations in demand. ENTERGY ARKANSAS, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Sales for resale Sales for resale increased for the first quarter of 2000 primarily due to increased nuclear generation making more energy available for sale, coupled with an increase in the market price of energy. Expenses Fuel and purchased power expenses Fuel and purchased power expenses increased slightly for the first quarter of 2000 primarily due to an increase in generation compared to the first quarter of 1999. Nuclear generation increased in the first quarter of 2000 due to a refueling outage at ANO 2 in the first quarter of 1999. Gas generation increased in the first quarter of 2000 as an offset to decreased coal generation resulting from maintenance outages at the White Bluff plant. Purchased power increased due to an increase in the market price of purchased power as well as an increase in purchased power volume. The increased expenses were largely offset by a true-up to adjust the deferred fuel balance to reflect fuel under-recoveries that Entergy Arkansas expects to recover in the future. Other operation and maintenance Other operation and maintenance expenses decreased for the first quarter of 2000 primarily due to: o lower incentive compensation accruals in 2000 compared to 1999; o decreased return-to-service expenditures for certain generating plants; and o a larger nuclear insurance refund in 2000 compared to 1999. Other regulatory credits Other regulatory credits increased for the first quarter of 2000 primarily due to an increased under-recovery of Grand Gulf 1 costs as a result of the decreased rate rider as ordered by the APSC that became effective in January 2000. Other Allowance for equity funds used during construction increased for the first quarter of 2000 due to increased capital spending. Income taxes The effective income tax rates for the first quarter of 2000 and 1999 were 40.9% and 19.6%, respectively. The increase in the effective tax rate was due to increased pre-tax income for 2000 combined with decreased flow-through tax benefits which included a tax liability on nuclear fuel purchases in the first quarter of 2000 compared with a tax credit on nuclear fuel purchases in the first quarter of 1999.
ENTERGY ARKANSAS, INC. INCOME STATEMENTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING REVENUES Domestic electric $346,877 $311,969 -------- -------- OPERATING EXPENSES Operating and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 47,677 48,792 Purchased power 98,797 94,943 Nuclear refueling outage expenses 6,439 8,066 Other operation and maintenance 75,925 82,209 Decommissioning 2,028 2,461 Taxes other than income taxes 8,716 9,256 Depreciation and amortization 41,301 41,668 Other regulatory credits - net (10,765) (7,586) -------- -------- TOTAL 270,118 279,809 -------- -------- OPERATING INCOME 76,759 32,160 -------- -------- OTHER INCOME Allowance for equity funds used during construction 3,578 2,410 Miscellaneous - net 1,545 937 -------- -------- TOTAL 5,123 3,347 -------- -------- INTEREST AND OTHER CHARGES Interest on long-term debt 20,906 20,674 Other interest - net 2,297 1,526 Distributions on preferred securities of subsidiary 1,275 1,275 Allowance for borrowed funds used during construction (2,304) (1,658) -------- -------- TOTAL 22,174 21,817 -------- -------- INCOME BEFORE INCOME TAXES 59,708 13,690 Income taxes 24,394 2,679 -------- -------- NET INCOME 35,314 11,011 Preferred dividend requirements and other 1,944 2,420 -------- -------- EARNINGS APPLICABLE TO COMMON STOCK $33,370 $8,591 ======== ======== See Notes to Financial Statements.
ENTERGY ARKANSAS, INC. STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING ACTIVITIES Net income $35,314 $11,011 Noncash items included in net income: Other regulatory credits - net (10,765) (7,586) Depreciation, amortization, and decommissioning 43,329 44,129 Deferred income taxes and investment tax credits 3,376 2,094 Allowance for equity funds used during construction (3,578) (2,410) Changes in working capital: Receivables (13,534) (11,036) Fuel inventory (18,759) (16,921) Accounts payable (58,822) 33,193 Taxes accrued 41,318 2,639 Interest accrued 1,547 (893) Deferred fuel costs (10,808) 10,400 Other working capital accounts 1,003 (19,459) Provision for estimated losses and reserves (1,377) (10,307) Changes in other regulatory assets (2,596) (10,271) Other 12,116 17,595 -------- -------- Net cash flow provided by operating activities 17,764 42,178 -------- -------- INVESTING ACTIVITIES Construction expenditures (69,411) (61,382) Allowance for equity funds used during construction 3,578 2,410 Nuclear fuel purchases (148) (962) Proceeds from sale/leaseback of nuclear fuel 148 962 Decommissioning trust contributions and realized change in trust assets (3,450) (5,854) -------- -------- Net cash flow used in investing activities (69,283) (64,826) -------- -------- FINANCING ACTIVITIES Proceeds from issuance of: Long Term Debt 99,630 - Dividends paid: Preferred stock - (2,420) -------- -------- Net cash flow provided by (used in) financing activities 99,630 (2,420) -------- -------- Net increase (decrease) in cash and cash equivalents 48,111 (25,068) Cash and cash equivalents at beginning of period 6,862 93,105 -------- -------- Cash and cash equivalents at end of period $54,973 $68,037 ======== ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid/(received) during the period for: Interest - net of amount capitalized $21,694 $23,104 Income taxes ($15,400) $4,380 Noncash investing and financing activities: Change in unrealized appreciation/(depreciation) of decommissioning trust assets ($4,378) $7,220 See Notes to Financial Statements.
ENTERGY ARKANSAS, INC. BALANCE SHEETS ASSETS March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $6,642 $6,862 Temporary cash investments - at cost, which approximates market 48,331 - ---------- ---------- Total cash and cash equivalents 54,973 6,862 ---------- ---------- Accounts receivable: Customer 59,709 73,357 Allowance for doubtful accounts (1,768) (1,768) Associated companies 57,654 27,073 Other 6,582 5,583 Accrued unbilled revenues 49,202 53,600 ---------- ---------- Total receivables 171,379 157,845 ---------- ---------- Deferred fuel costs 52,427 41,620 Fuel inventory - at average cost 43,244 24,485 Materials and supplies - at average cost 89,506 85,612 Deferred nuclear refueling outage costs 21,718 28,119 Prepayments and other 9,115 6,480 ---------- ---------- TOTAL 442,362 351,023 ---------- ---------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity 11,215 11,215 Decommissioning trust funds 343,082 344,011 Non-utility property - at cost (less accumulated depreciation) 1,462 1,463 Other - at cost (less accumulated depreciation) 3,033 3,033 ---------- ---------- TOTAL 358,792 359,722 ---------- ---------- UTILITY PLANT Electric 4,873,306 4,854,433 Property under capital lease 43,983 44,471 Construction work in progress 316,859 267,091 Nuclear fuel under capital lease 77,021 85,725 Nuclear fuel 8,767 9,449 ---------- ---------- TOTAL UTILITY PLANT 5,319,936 5,261,169 Less - accumulated depreciation and amortization 2,443,639 2,401,021 ---------- ---------- UTILITY PLANT - NET 2,876,297 2,860,148 ---------- ---------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net 185,841 192,344 Unamortized loss on reacquired debt 47,247 48,193 Other regulatory assets 116,059 106,959 Other 11,871 14,125 ---------- ---------- TOTAL 361,018 361,621 ---------- ---------- TOTAL ASSETS $4,038,469 $3,932,514 ========== ========== See Notes to Financial Statements.
ENTERGY ARKANSAS, INC. BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $220 $220 Notes payable 667 667 Accounts payable Associated companies 38,608 81,958 Other 87,487 102,959 Customer deposits 27,120 26,320 Taxes accrued 79,849 38,532 Accumulated deferred income taxes 44,674 38,649 Interest accrued 23,925 22,378 Co-owner advances 12,077 15,338 Obligations under capital leases 55,207 55,150 Other 17,219 11,598 ---------- ---------- TOTAL 387,053 393,769 ---------- ---------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 706,039 713,622 Accumulated deferred investment tax credits 93,573 94,852 Obligations under capital leases 65,798 75,045 Other regulatory liabilities 84,184 88,563 Transition to competition 111,066 109,933 Accumulated provisions 41,911 43,288 Other 51,038 51,080 ---------- ---------- TOTAL 1,153,609 1,176,383 ---------- ---------- Long-term debt 1,232,876 1,130,801 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures 60,000 60,000 SHAREHOLDERS' EQUITY Preferred stock without sinking fund 116,350 116,350 Common stock, $0.01 par value, authorized 325,000,000 shares; issued and outstanding 46,980,196 shares in 2000 and 1999 470 470 Paid-in capital 591,127 591,127 Retained earnings 496,984 463,614 ---------- ---------- TOTAL 1,204,931 1,171,561 ---------- ---------- Commitments and Contingencies (Notes 1 and 2) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,038,469 $3,932,514 ========== ========== See Notes to Financial Statements.
ENTERGY ARKANSAS, INC. SELECTED OPERATING RESULTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) Increase/ Description 2000 1999 (Decrease) % (In Millions) Electric Operating Revenues: Residential $ 117.7 $ 116.7 $ 1.0 1 Commercial 62.1 59.6 2.5 4 Industrial 73.7 70.7 3.0 4 Governmental 3.2 3.3 (0.1) (3) -------------------------------- Total retail 256.7 250.3 6.4 3 Sales for resale Associated companies 45.2 29.5 15.7 53 Non-associated companies 41.9 36.5 5.4 15 Other 3.1 (4.3) 7.4 172 -------------------------------- Total $ 346.9 $ 312.0 $ 34.9 11 ================================ Billed Electric Energy Sales (GWH): Residential 1,550 1,556 (6) - Commercial 1,075 1,060 15 1 Industrial 1,652 1,607 45 3 Governmental 54 55 (1) (2) -------------------------------- Total retail 4,331 4,278 53 1 Sales for resale Associated companies 1,681 1,536 145 9 Non-associated companies 1,149 821 328 40 -------------------------------- Total 7,161 6,635 526 8 ================================ ENTERGY GULF STATES, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Net Income Net income decreased slightly for the first quarter of 2000 primarily due to an adjustment of the deferred fuel balance to reflect regulatory actions in the first quarter of 2000. This decrease was largely offset by increased base revenues and decreased other operation and maintenance expenses, depreciation and amortization expenses, and interest expense. Revenues and Sales Electric operating revenues The changes in electric operating revenues for the first quarter of 2000 are as follows: First Quarter Description Increase/(Decrease) (In Millions) Base revenues $8.4 Fuel cost recovery 51.1 Sales volume/weather 6.9 Other revenue (including unbilled) (1.8) Sales for resale 2.4 ----- Total $67.0 ===== Base revenues Base revenues increased for the first quarter of 2000 primarily due to the elimination and expiration of 1999 Texas base rate refunds. Fuel cost recovery Fuel cost recovery revenues do not affect net income because they are an increase to revenues that is offset by specific incurred fuel costs. Fuel cost recovery revenues increased for the first quarter of 2000 due to higher fuel factors that became effective in March and September 1999 and a fuel surcharge implemented in January 2000 in the Texas jurisdiction. Fuel cost recovery revenues also increased due to higher fuel and purchased power costs in the Louisiana jurisdiction due to increased market prices. Sales volume/weather Sales volume increased for the first quarter of 2000 due to more favorable weather, primarily in the Louisiana jurisdiction, as well as increased usage primarily by industrial customers in both Louisiana and Texas. ENTERGY GULF STATES, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Steam operating revenues Steam operating revenues decreased for the first quarter of 2000 due to a new lease arrangement for Louisiana Station 1 that began in June 1999. Under the terms of this new lease, revenues and expenses are now classified as other income rather than steam operating revenues and other operation and maintenance expenses, respectively, which were the previous classifications. Expenses Fuel and purchased power expenses Fuel and purchased power expenses increased for the first quarter of 2000 due to: o an adjustment of the Texas jurisdiction deferred fuel balance as a result of the fuel reconciliation settlement with the PUCT; o a shift from lower-priced coal and nuclear fuel to higher-priced gas and purchased power due to scheduled outages at Nelson 6 and River Bend in the first quarter of 2000; and o higher market prices for gas and purchased power. Other operation and maintenance Other operation and maintenance expenses decreased for the first quarter of 2000 primarily due to: o a larger nuclear insurance refund in 2000 compared to 1999; o decreased environmental reserves in the distribution business; and o lower incentive compensation accruals in 2000 compared to 1999. These decreases were partially offset by higher customer service expenses, such as tree-trimming. Depreciation and amortization Depreciation and amortization decreased for the first quarter of 2000 primarily due to reduced River Bend depreciation expense as a result of the write-down of the River Bend abeyed plant required by the Texas rate settlement in June 1999. Other Interest charges Interest charges decreased for the first quarter of 2000 primarily due to the retirement and refinancing of certain long-term debt in 1999. Income taxes The effective income tax rates for the first quarter of 2000 and 1999 were 47.0% and 49.5%, respectively.
ENTERGY GULF STATES, INC. INCOME STATEMENTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING REVENUES Domestic electric $470,817 $403,806 Natural gas 12,414 11,717 Steam products - 8,296 -------- -------- TOTAL 483,231 423,819 -------- -------- OPERATING EXPENSES Operating and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 191,550 138,574 Purchased power 72,135 45,593 Nuclear refueling outage expenses 5,493 2,678 Other operation and maintenance 95,121 99,555 Decommissioning 1,568 3,280 Taxes other than income taxes 26,854 29,725 Depreciation and amortization 46,818 50,507 Other regulatory credits - net (8,145) (9,395) Amortization of rate deferrals 1,402 2,270 -------- -------- TOTAL 432,796 362,787 -------- -------- OPERATING INCOME 50,435 61,032 -------- -------- OTHER INCOME Allowance for equity funds used during construction 1,741 1,226 Gain on sale of assets 515 447 Miscellaneous - net 1,635 597 -------- -------- TOTAL 3,891 2,270 -------- -------- INTEREST AND OTHER CHARGES Interest on long-term debt 32,375 35,240 Other interest - net 1,404 685 Distributions on preferred securities of subsidiary 1,859 1,859 Allowance for borrowed funds used during construction (1,609) (1,109) -------- -------- TOTAL 34,029 36,675 -------- -------- INCOME BEFORE INCOME TAXES 20,297 26,627 Income taxes 9,540 13,190 -------- -------- NET INCOME 10,757 13,437 Preferred dividend requirements and other 4,144 4,552 -------- -------- EARNINGS APPLICABLE TO COMMON STOCK $6,613 $8,885 ======== ======== See Notes to Financial Statements.
ENTERGY GULF STATES, INC. STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING ACTIVITIES Net income $10,757 $13,437 Noncash items included in net income: Amortization of rate deferrals 1,402 2,270 Reserve for regulatory adjustments 333 (2,265) Other regulatory credits - net (8,145) (9,395) Depreciation, amortization, and decommissioning 48,386 53,787 Deferred income taxes and investment tax credits (19,306) 2,120 Allowance for equity funds used during construction (1,741) (1,226) Gain on sale of assets (515) (447) Changes in working capital: Receivables 6 (30,932) Fuel inventory (8,561) (10,679) Accounts payable 21,661 12,849 Taxes accrued (9,828) 11,695 Interest accrued (7,242) 6,845 Deferred fuel costs 37,296 20,845 Other working capital accounts 10,624 4,905 Provision for estimated losses and reserves (1,110) 1,833 Changes in other regulatory assets (6,470) (5,395) Other 13,908 4,093 -------- -------- Net cash flow provided by operating activities 81,455 74,340 -------- -------- INVESTING ACTIVITIES Construction expenditures (50,130) (36,070) Allowance for equity funds used during construction 1,741 1,226 Nuclear fuel purchases (33,304) (11,030) Proceeds from sale/leaseback of nuclear fuel 13,797 11,030 Decommissioning trust contributions and realized change in trust assets (2,608) (2,605) -------- -------- Net cash flow used in investing activities (70,504) (37,449) -------- -------- FINANCING ACTIVITIES Proceeds from issuance of: Long Term Debt - 21,775 Retirement of: Long Term Debt - (47,095) Redemption of preferred stock (2,493) (24,731) Dividends paid: Common stock (3,400) - Preferred stock (4,109) (4,643) -------- -------- Net cash flow used in financing activities (10,002) (54,694) -------- -------- Net increase (decrease) in cash and cash equivalents 949 (17,803) Cash and cash equivalents at beginning of period 32,312 115,736 -------- -------- Cash and cash equivalents at end of period $33,261 $97,933 ======== ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid/(received) during the period for: Interest - net of amount capitalized $41,483 $29,039 Income taxes $33,835 ($2,674) Noncash investing and financing activities: Change in unrealized appreciation/(depreciation) of decommissioning trust assets ($2,826) $5,846 See Notes to Financial Statements.
ENTERGY GULF STATES, INC. BALANCE SHEETS ASSETS March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $8,987 $8,607 Temporary cash investments - at cost, which approximates market 24,274 23,705 ---------- ---------- Total cash and cash equivalents 33,261 32,312 ---------- ---------- Accounts receivable: Customer 72,348 73,215 Allowance for doubtful accounts (1,828) (1,828) Associated companies 3,892 1,706 Other 18,252 15,030 Accrued unbilled revenues 85,849 90,396 ---------- ---------- Total receivables 178,513 178,519 ---------- ---------- Deferred fuel costs 97,162 134,458 Fuel inventory - at average cost 46,832 38,271 Materials and supplies - at average cost 109,396 112,585 Rate deferrals 5,606 5,606 Prepayments and other 16,899 21,750 ---------- ---------- TOTAL 487,669 523,501 ---------- ---------- OTHER PROPERTY AND INVESTMENTS Decommissioning trust funds 234,459 234,677 Non-utility property - at cost (less accumulated depreciation) 190,501 187,759 Other - at cost (less accumulated depreciation) 14,447 13,681 ---------- ---------- TOTAL 439,407 436,117 ---------- ---------- UTILITY PLANT Electric 7,398,592 7,365,407 Property under capital lease 44,165 46,210 Natural gas 53,141 52,473 Construction work in progress 154,163 145,492 Nuclear fuel under capital lease 75,706 70,801 Nuclear fuel 19,512 - ---------- ---------- TOTAL UTILITY PLANT 7,745,279 7,680,383 Less - accumulated depreciation and amortization 3,579,636 3,534,473 ---------- ---------- UTILITY PLANT - NET 4,165,643 4,145,910 ---------- ---------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Rate deferrals 4,205 5,606 SFAS 109 regulatory asset - net 386,954 385,405 Unamortized loss on reacquired debt 40,589 40,576 Other regulatory assets 145,078 140,157 Long-term receivables 31,625 32,260 Other 17,800 23,490 ---------- ---------- TOTAL 626,251 627,494 ---------- ---------- TOTAL ASSETS $5,718,970 $5,733,022 ========== ========== See Notes to Financial Statements.
ENTERGY GULF STATES, INC. BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT LIABILITIES Accounts payable: Associated companies $88,837 $79,962 Other 127,230 114,444 Customer deposits 35,385 33,360 Taxes accrued 91,971 101,798 Accumulated deferred income taxes 13,665 27,960 Nuclear refueling outage costs 9,246 11,216 Interest accrued 21,329 28,570 Obligations under capital leases 51,816 51,973 Other 17,057 14,557 ---------- ---------- TOTAL 456,536 463,840 ---------- ---------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 1,098,625 1,098,882 Accumulated deferred investment tax credits 175,639 178,500 Obligations under capital leases 68,056 65,038 Other regulatory liabilities 17,980 20,089 Decommissioning 139,760 139,194 Transition to competition 53,421 47,101 Regulatory reserves 110,869 110,536 Accumulated provisions 68,285 69,395 Other 106,314 117,804 ---------- ---------- TOTAL 1,838,949 1,846,539 ---------- ---------- Long-term debt 1,631,639 1,631,581 Preferred stock with sinking fund 34,650 34,650 Preference stock 150,000 150,000 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures 85,000 85,000 SHAREHOLDERS' EQUITY Preferred stock without sinking fund 48,951 51,444 Common stock, no par value, authorized 200,000,000 shares; issued and outstanding 100 shares in 2000 and and 1999 114,055 114,055 Paid-in capital 1,153,195 1,153,131 Retained earnings 205,995 202,782 ---------- ---------- TOTAL 1,522,196 1,521,412 ---------- ---------- Commitments and Contingencies (Notes 1 and 2) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $5,718,970 $5,733,022 ========== ========== See Notes to Financial Statements.
ENTERGY GULF STATES, INC. SELECTED OPERATING RESULTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) Increase/ Description 2000 1999 (Decrease) % (In Millions) Electric Department Operating Revenues: Residential $ 137.9 $ 116.2 $ 21.7 19 Commercial 108.3 91.5 16.8 18 Industrial 184.5 156.2 28.3 18 Governmental 7.7 6.5 1.2 18 ------------------------------ Total retail 438.4 370.4 68.0 18 Sales for resale Associated companies 6.5 3.8 2.7 71 Non-associated companies 20.4 20.7 (0.3) (1) Other 5.5 8.9 (3.4) (38) ------------------------------ Total Electric Department $ 470.8 $ 403.8 $ 67.0 17 ============================== Billed Electric Energy Sales (GWH): Residential 1,833 1,803 30 2 Commercial 1,642 1,600 42 3 Industrial 4,370 4,114 256 6 Governmental 105 100 5 5 ------------------------------ Total retail 7,950 7,617 333 4 Sales for resale Associated companies 188 153 35 23 Non-associated companies 799 985 (186) (19) ------------------------------ Total Electric Department 8,937 8,755 182 2 ============================== ENTERGY LOUISIANA, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Net Income Net income decreased for the first quarter of 2000 primarily due to an increase in provisions for rate refunds, partially offset by decreases in nuclear refueling outage expenses, other operation and maintenance expenses, and interest charges. Revenues and Sales The changes in electric operating revenues for the first quarter of 2000 are as follows: First Quarter Description Increase/(Decrease) (In Millions) Base revenues ($29.5) Fuel cost recovery 21.4 Sales volume/weather 8.6 Other revenue (including unbilled) (4.2) Sales for resale (1.6) ----- Total ($5.3) ===== Base revenues Base revenues decreased primarily due to accruals for potential rate refunds. Fuel cost recovery Fuel cost recovery revenues do not affect net income because they are an increase to revenues that is offset by specific incurred fuel costs. Fuel cost recovery revenues increased for the first quarter of 2000 as a result of higher fuel and purchased power expenses primarily due to the increased market price of natural gas. Sales volume/weather Sales volume increased for the first quarter of 2000 primarily due to increased usage by industrial and residential customers. Other revenue (including unbilled) Other revenue decreased for the first quarter of 2000 primarily due to electric property rent received in 1999 as a result of increased pole usage fees. ENTERGY LOUISIANA, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Expenses Fuel and purchased power expenses Net fuel and purchased power expenses increased for the first quarter of 2000 primarily due to increased market prices of natural gas and increased nuclear generation. This was partially offset by a decrease in purchased power expenses as a result of the nuclear refueling outage in February 1999. Nuclear refueling outage expenses Nuclear refueling outage expenses decreased for the first quarter of 2000 as a result of the amortization of larger outage expenses in 1999 due to the extended nuclear refueling outage in 1997. The costs incurred by the nuclear refueling outages are amortized over the period between scheduled outages, typically eighteen months. Other operation and maintenance Other operation and maintenance expenses decreased for the first quarter in 2000 primarily due to: o a larger nuclear insurance refund in 2000 compared to 1999; and o lower incentive compensation accruals in 2000 compared to 1999. Other Interest charges Interest on long-term debt decreased for the first quarter of 2000 primarily due to the redemption, retirement, and refinancing of certain long-term debt during 1999. Income taxes The effective income tax rates for the first quarter of 2000 and 1999 were 45.3% and 42.8%, respectively.
ENTERGY LOUISIANA, INC. INCOME STATEMENTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING REVENUES Domestic electric $346,820 $352,135 -------- -------- OPERATING EXPENSES Operating and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 83,191 58,225 Purchased power 88,875 92,463 Nuclear refueling outage expenses 3,410 5,436 Other operation and maintenance 63,075 67,803 Decommissioning 2,606 2,196 Taxes other than income taxes 16,763 18,244 Depreciation and amortization 42,147 41,779 Other regulatory charges - net 240 - -------- -------- TOTAL 300,307 286,146 -------- -------- OPERATING INCOME 46,513 65,989 -------- -------- OTHER INCOME Allowance for equity funds used during construction 683 761 Miscellaneous - net 108 (42) -------- -------- TOTAL 791 719 -------- -------- INTEREST AND OTHER CHARGES Interest on long-term debt 24,163 27,054 Other interest - net 2,050 1,171 Distributions on preferred securities of subsidiary 1,575 1,575 Allowance for borrowed funds used during construction (957) (651) -------- -------- TOTAL 26,831 29,149 -------- -------- INCOME BEFORE INCOME TAXES 20,473 37,559 Income taxes 9,282 16,072 -------- -------- NET INCOME 11,191 21,487 Preferred dividend requirements and other 2,378 2,670 -------- -------- EARNINGS APPLICABLE TO COMMON STOCK $8,813 $18,817 ======== ======== See Notes to Financial Statements.
ENTERGY LOUISIANA, INC. STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING ACTIVITIES Net income $11,191 $21,487 Noncash items included in net income: Other regulatory charges - net 240 - Depreciation, amortization, and decommissioning 44,753 43,976 Deferred income taxes and investment tax credits (12,187) 4,899 Allowance for equity funds used during construction (683) (761) Changes in working capital: Receivables 15,211 41,368 Fuel inventory - (489) Accounts payable (65,581) (18,292) Taxes accrued 23,218 21,369 Interest accrued 57 (32,185) Deferred fuel costs (94) (7,464) Other working capital accounts 17,637 (10,502) Provision for estimated losses and reserves 381 (945) Changes in other regulatory assets 5,249 11,040 Other (5,513) (17,150) -------- -------- Net cash flow provided by operating activities 33,879 56,351 -------- -------- INVESTING ACTIVITIES Construction expenditures (30,345) (20,124) Allowance for equity funds used during construction 683 761 Nuclear fuel purchases - (11,308) Proceeds from sale/leaseback of nuclear fuel - 11,308 Decommissioning trust contributions and realized change in trust assets (776) (2,811) -------- -------- Net cash flow used in investing activities (30,438) (22,174) -------- -------- FINANCING ACTIVITIES Proceeds from issuance of: Long Term Debt - 74,691 Retirement of: Long Term Debt (100,000) (6,547) Redemption of preferred stock - (50,000) Advances from Parent 100,000 - Dividends paid: Preferred stock (2,378) (3,253) -------- -------- Net cash flow provided by (used in) financing activities (2,378) 14,891 -------- -------- Net increase in cash and cash equivalents 1,063 49,068 Cash and cash equivalents at beginning of period 7,734 83,030 -------- -------- Cash and cash equivalents at end of period $8,797 $132,098 ======== ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest - net of amount capitalized $25,456 $60,646 Income taxes $9,900 $4,301 Noncash investing and financing activities: Change in unrealized appreciation/(depreciation) of decommissioning trust assets ($1,499) $1,182 See Notes to Financial Statements.
ENTERGY LOUISIANA, INC. BALANCE SHEETS ASSETS March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT ASSETS Cash and cash equivalents $8,797 $7,734 Notes Receivable 1,503 3 Accounts receivable: Customer 74,562 79,335 Allowance for doubtful accounts (1,615) (1,615) Associated companies 13,740 14,601 Other 12,085 10,762 Accrued unbilled revenues 95,300 106,200 ---------- ---------- Total receivables 194,072 209,283 ---------- ---------- Deferred fuel costs 2,256 2,161 Accumulated deferred income taxes 13,770 12,520 Materials and supplies - at average cost 84,765 84,027 Deferred nuclear refueling outage costs 7,934 11,336 Prepayments and other 13,592 6,011 ---------- ---------- TOTAL 326,689 333,075 ---------- ---------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity 14,230 14,230 Decommissioning trust funds 100,220 100,943 Non-utility property - at cost (less accumulated depreciation) 22,156 21,433 ---------- ---------- TOTAL 136,606 136,606 ---------- ---------- UTILITY PLANT Electric 5,192,795 5,178,808 Property under capital lease 236,272 236,271 Construction work in progress 122,808 108,106 Nuclear fuel under capital lease 44,771 51,930 ---------- ---------- TOTAL UTILITY PLANT 5,596,646 5,575,115 Less - accumulated depreciation and amortization 2,336,112 2,294,394 ---------- ---------- UTILITY PLANT - NET 3,260,534 3,280,721 ---------- ---------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net 225,408 230,899 Unamortized loss on reacquired debt 36,963 35,856 Other regulatory assets 50,433 50,191 Other 14,160 17,302 ---------- ---------- TOTAL 326,964 334,248 ---------- ---------- TOTAL ASSETS $4,050,793 $4,084,650 ========== ========== See Notes to Financial Statements.
ENTERGY LOUISIANA, INC. BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $16,388 $116,388 Accounts payable: Associated companies 83,155 137,869 Other 79,901 90,768 Customer deposits 62,127 61,096 Taxes accrued 49,080 25,863 Interest accrued 20,293 20,236 Obligations under capital leases 28,387 28,387 Other 82,761 59,737 ---------- ---------- TOTAL 422,092 540,344 ---------- ---------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 777,548 792,290 Accumulated deferred investment tax credits 121,775 123,155 Obligations under capital leases 16,384 23,543 Other regulatory liabilities 13,922 15,421 Accumulated provisions 58,468 58,087 Other 34,461 34,564 ---------- ---------- TOTAL 1,022,558 1,047,060 ---------- ---------- Long-term debt 1,245,547 1,145,463 Preferred stock with sinking fund 35,000 35,000 Company-obligated mandatorily redeemable preferred securities of subsidiary trust holding solely junior subordinated deferrable debentures 70,000 70,000 SHAREHOLDERS' EQUITY Preferred stock without sinking fund 100,500 100,500 Common stock, no par value, authorized 250,000,000 shares; issued and outstanding 165,173,180 shares in 2000 and 1999 1,088,900 1,088,900 Capital stock expense and other (2,171) (2,171) Retained earnings 68,367 59,554 ---------- ---------- TOTAL 1,255,596 1,246,783 ---------- ---------- Commitments and Contingencies (Notes 1 and 2) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,050,793 $4,084,650 ========== ========== See Notes to Financial Statements.
ENTERGY LOUISIANA, INC. SELECTED OPERATING RESULTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) Increase/ Description 2000 1999 (Decrease) % (In Millions) Electric Operating Revenues: Residential $ 119.1 $ 112.2 $ 6.9 6 Commercial 83.3 79.2 4.1 5 Industrial 152.7 138.3 14.4 10 Governmental 7.9 7.7 0.2 3 ----------------------------- Total retail 363.0 337.4 25.6 8 Sales for resale Associated companies 0.5 2.5 (2.0) (80) Non-associated companies 11.6 11.2 0.4 4 Other (28.3) 1.0 (29.3) (2,930) ----------------------------- Total $ 346.8 $ 352.1 ($5.3) (2) ============================= Billed Electric Energy Sales (GWH): Residential 1,733 1,690 43 3 Commercial 1,148 1,131 17 2 Industrial 3,762 3,626 136 4 Governmental 113 116 (3) (3) ----------------------------- Total retail 6,756 6,563 193 3 Sales for resale Associated companies 13 98 (85) (87) Non-associated companies 203 244 (41) (17) ----------------------------- Total 6,972 6,905 67 1 ============================= ENTERGY MISSISSIPPI, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Net Income Net income increased for the first quarter of 2000 primarily due to an increase in unbilled revenues and other income, partially offset by increased base rate reductions and higher other operation and maintenance expenses. Revenues and Sales The changes in electric operating revenues for the first quarter of 2000 are as follows: First Quarter Description Increase/(Decrease) (In Millions) Base revenues ($3.3) Grand Gulf rate rider 0.6 Fuel cost recovery 11.1 Sales volume/weather 1.1 Other revenue (including unbilled) 6.8 Sales for resale (16.0) ----- Total $0.3 ===== Base revenues Base revenues decreased for the first quarter of 2000 primarily due to a base rate reduction that became effective in May 1999. Fuel cost recovery Fuel cost recovery revenues do not affect net income because they are an increase to revenues that is offset by specific incurred fuel costs. Fuel cost recovery revenues increased for the first quarter of 2000 primarily due to an increase in the energy cost recovery rate effective January 2000. Other revenue (including unbilled) Other revenue increased for the first quarter of 2000 primarily due to the effect of favorable weather on the unbilled revenue calculation in 2000. Sales for resale Sales for resale decreased for the first quarter of 2000 primarily due to a decrease in sales to associated companies as a result of decreased oil generation due to plant outages at Entergy Mississippi in early 2000. ENTERGY MISSISSIPPI, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Expenses Fuel and purchased power expenses Fuel and purchased power expenses decreased for the first quarter of 2000 primarily due to the displacement of oil generation by less expensive gas generation in the first quarter of 2000. The decrease was partially offset by a shift to higher-priced purchased power as a result of plant outages. Other operation and maintenance Other operation and maintenance expenses increased for the first quarter of 2000 primarily due to: o an increase in employee pension and benefits expense; o an increase in property insurance expense; and o an increase in plant maintenance. The overall increase is partially offset by a decrease in general and administrative salaries. Other regulatory credits Other regulatory credits decreased for the first quarter of 2000 primarily due to a decrease in the deferral of Grand Gulf 1 expenses. Other Other Income The increase in other income is primarily due to an increase in AFUDC and an increase in the interest income received from the deferral of Grand Gulf 1 expenses. Income taxes The effective income tax rates for the first quarter of 2000 and 1999 were 27.3% and 29.4%, respectively.
ENTERGY MISSISSIPPI, INC. INCOME STATEMENTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING REVENUES Domestic electric $182,775 $182,443 -------- -------- OPERATING EXPENSES Operating and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 44,287 59,434 Purchased power 76,828 68,466 Other operation and maintenance 35,623 31,119 Taxes other than income taxes 10,176 10,701 Depreciation and amortization 11,725 11,516 Other regulatory credits - net (9,078) (11,013) -------- -------- TOTAL 169,561 170,223 -------- -------- OPERATING INCOME 13,214 12,220 -------- -------- OTHER INCOME Allowance for equity funds used during construction 637 143 Miscellaneous - net 2,030 1,619 -------- -------- TOTAL 2,667 1,762 -------- -------- INTEREST AND OTHER CHARGES Interest on long-term debt 9,454 9,222 Other interest - net 1,020 844 Allowance for borrowed funds used during (504) (355) construction -------- -------- TOTAL 9,970 9,711 -------- -------- INCOME BEFORE INCOME TAXES 5,911 4,271 Income taxes 1,616 1,256 -------- -------- NET INCOME 4,295 3,015 Preferred dividend requirements and other 842 842 -------- -------- EARNINGS APPLICABLE TO COMMON STOCK $3,453 $2,173 ======== ======== See Notes to Financial Statements.
ENTERGY MISSISSIPPI, INC. STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING ACTIVITIES Net income $4,295 $3,015 Noncash items included in net income: Other regulatory credits - net (9,078) (11,013) Depreciation and amortization 11,725 11,516 Deferred income taxes and investment tax credits 3,731 7,686 Allowance for equity funds used during construction (637) (143) Changes in working capital: Receivables (5,521) 21,172 Fuel inventory 786 (308) Accounts payable (54,785) (13,471) Taxes accrued (27,128) (2,002) Interest accrued 2,528 (934) Deferred fuel costs 1,675 10,735 Other working capital accounts 572 (904) Provision for estimated losses and reserves (473) (132) Changes in other regulatory assets (9,661) (18,580) Other 9,741 9,327 -------- -------- Net cash flow provided by (used in) operating activities (72,230) 15,964 -------- -------- INVESTING ACTIVITIES Construction expenditures (26,337) (15,366) Allowance for equity funds used during construction 637 143 -------- -------- Net cash flow used in investing activities (25,700) (15,223) -------- -------- FINANCING ACTIVITIES Proceeds from issuance of: Long Term Debt 119,241 - Dividends paid: Common stock (1,000) - Preferred stock (842) (842) -------- -------- Net cash flow provided by (used in) financing activities 117,399 (842) -------- -------- Net increase (decrease) in cash and cash equivalents 19,469 (101) Cash and cash equivalents at beginning of period 4,787 2,640 -------- -------- Cash and cash equivalents at end of period $24,256 $2,539 ======== ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid/(received) during the period for: Interest - net of amount capitalized $7,317 $10,586 Income taxes $4,664 ($23,711) See Notes to Financial Statements.
ENTERGY MISSISSIPPI, INC. BALANCE SHEETS ASSETS March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $3,313 $4,787 Temporary cash investments - at cost, which approximates market 20,943 - ---------- ---------- Total cash and cash equivalents 24,256 4,787 ---------- ---------- Accounts receivable: Customer 28,451 35,675 Allowance for doubtful accounts (886) (886) Associated companies 16,579 1,370 Other 2,327 2,391 Accrued unbilled revenues 26,200 28,600 ---------- ---------- Total receivables 72,671 67,150 ---------- ---------- Deferred fuel costs 46,264 47,939 Fuel inventory - at average cost 2,988 3,774 Materials and supplies - at average cost 15,589 17,068 Prepayments and other 8,826 7,114 ---------- ---------- TOTAL 170,594 147,832 ---------- ---------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity 5,531 5,531 Non-utility property - at cost (less accumulated depreciation) 6,933 6,965 ---------- ---------- TOTAL 12,464 12,496 ---------- ---------- UTILITY PLANT Electric 1,776,184 1,763,636 Property under capital lease 361 384 Construction work in progress 81,733 66,789 ---------- ---------- TOTAL UTILITY PLANT 1,858,278 1,830,809 Less - accumulated depreciation and amortization 721,099 709,543 ---------- ---------- UTILITY PLANT - NET 1,137,179 1,121,266 ---------- ---------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net 24,260 24,051 Unamortized loss on reacquired debt 16,038 16,345 Other regulatory assets 141,695 132,243 Other 5,743 5,784 ---------- ---------- TOTAL 187,736 178,423 ---------- ---------- TOTAL ASSETS $1,507,973 $1,460,017 ========== ========== See Notes to Financial Statements.
ENTERGY MISSISSIPPI, INC. BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT LIABILITIES Accounts payable: Associated companies $35,218 $84,382 Other 26,848 32,470 Customer deposits 24,207 23,303 Taxes accrued 8,840 35,968 Accumulated deferred income taxes 562 526 Interest accrued 12,566 10,038 Obligations under capital leases 97 95 Other 2,040 2,137 ---------- ---------- TOTAL 110,378 188,919 ---------- ---------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 302,894 298,477 Accumulated deferred investment tax credits 20,533 20,908 Obligations under capital leases 265 290 Accumulated provisions 6,901 7,374 Other 4,110 3,368 ---------- ---------- TOTAL 334,703 330,417 ---------- ---------- Long-term debt 584,223 464,466 SHAREHOLDERS' EQUITY Preferred stock without sinking fund 50,381 50,381 Common stock, no par value, authorized 15,000,000 shares; issued and outstanding 8,666,357 shares in 2000 and 1999 199,326 199,326 Capital stock expense and other (59) (59) Retained earnings 229,021 226,567 ---------- ---------- TOTAL 478,669 476,215 ---------- ---------- Commitments and Contingencies (Notes 1 and 2) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,507,973 $1,460,017 ========== ========== See Notes to Financial Statements.
ENTERGY MISSISSIPPI, INC. SELECTED OPERATING RESULTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) Increase/ Description 2000 1999 (Decrease) % (In Millions) Electric Operating Revenues: Residential $ 66.1 $ 62.3 $ 3.8 6 Commercial 59.5 55.2 4.3 8 Industrial 37.4 36.1 1.3 4 Governmental 5.8 5.7 0.1 2 ----------------------------- Total retail 168.8 159.3 9.5 6 Sales for resale Associated companies 5.9 21.9 (16.0) (73) Non-associated companies 6.8 6.8 - - Other 1.3 (5.5) 6.8 124 ----------------------------- Total $ 182.8 $ 182.5 $ 0.3 - ============================= Billed Electric Energy Sales (GWH): Residential 1,023 1,004 19 2 Commercial 918 889 29 3 Industrial 743 755 (12) (2) Governmental 80 83 (3) (4) ----------------------------- Total retail 2,764 2,731 33 1 Sales for resale Associated companies 125 977 (852) (87) Non-associated companies 77 112 (35) (31) ----------------------------- Total 2,966 3,820 (854) (22) ============================= ENTERGY NEW ORLEANS, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Net Income Net income increased for the first quarter of 2000 primarily due to increased net gas revenue and decreased other operation and maintenance expenses. Revenues and Sales Electric operating revenues The changes in electric operating revenues for the first quarter of 2000 are as follows: First Quarter Description Increase/(Decrease) (In Millions) Base revenues ($0.1) Fuel cost recovery 6.9 Sales volume/weather 0.1 Other revenue (including unbilled) 1.6 Sales for resale (2.3) ---- Total $6.2 ==== Fuel cost recovery Fuel cost recovery revenues do not affect net income because they are an addition to revenues that is offset by specific incurred fuel costs. Fuel cost recovery revenues increased for the first quarter of 2000 primarily due to higher market prices for gas. Sales for resale Sales for resale decreased for the first quarter of 2000 primarily due to decreased oil-fired generation as a result of increased market prices for oil. Gas Operating Revenues Gas operating revenues increased for the first quarter of 2000 due to higher prices and increased usage primarily in the residential and commercial sectors. Expenses Fuel and purchased power expenses Net fuel and purchased power expenses increased for the first quarter of 2000 primarily due to increased gas market prices and increased gas purchased for resale due to more favorable weather in 2000. ENTERGY NEW ORLEANS, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Other operation and maintenance Other operation and maintenance decreased for the first quarter of 2000 primarily due to lower incentive compensation accruals and lower environmental reserves in 2000 compared to 1999. Other regulatory credits Other regulatory credits decreased for the first quarter of 2000 primarily due to an over-recovery of Grand Gulf 1-related costs in 2000 as opposed to an under-recovery in 1999. Other Income taxes The effective income tax rates for the first quarter of 2000 and 1999 were 52.2% and 27.5%, respectively. The increase in tax rate for the first quarter of 2000 was primarily due to the increase in pre-tax income affecting the impact of permanent differences and flow- through items. For the first quarter of 1999, Entergy New Orleans reported a pre-tax loss.
ENTERGY NEW ORLEANS, INC. INCOME STATEMENTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING REVENUES Domestic electric $86,259 $80,042 Natural gas 33,483 26,014 -------- -------- TOTAL 119,742 106,056 -------- -------- OPERATING EXPENSES Operating and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 41,801 30,935 Purchased power 35,111 36,452 Other operation and maintenance 16,851 22,980 Taxes other than income taxes 9,512 7,618 Depreciation and amortization 5,701 5,628 Other regulatory credits - net (1,602) (4,449) Amortization of rate deferrals 5,996 6,143 -------- -------- TOTAL 113,370 105,307 -------- -------- OPERATING INCOME 6,372 749 -------- -------- OTHER INCOME Allowance for equity funds used during construction 325 206 Miscellaneous - net 598 413 -------- -------- TOTAL 923 619 -------- -------- INTEREST AND OTHER CHARGES Interest on long-term debt 3,319 3,319 Other interest - net 416 322 Allowance for borrowed funds used during (238) (155) construction -------- -------- TOTAL 3,497 3,486 -------- -------- INCOME (LOSS) BEFORE INCOME TAXES 3,798 (2,118) Income taxes 1,981 (583) -------- -------- NET INCOME (LOSS) 1,817 (1,535) Preferred dividend requirements and other 241 241 -------- -------- EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $1,576 ($1,776) ======== ======== See Notes to Financial Statements.
ENTERGY NEW ORLEANS, INC. STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING ACTIVITIES Net income (loss) $1,817 ($1,535) Noncash items included in net income: Amortization of rate deferrals 5,996 6,143 Other regulatory credits - net (1,602) (4,449) Depreciation and amortization 5,701 5,628 Deferred income taxes and investment tax credits (3,501) 150 Allowance for equity funds used during construction (325) (206) Changes in working capital: Receivables 8,720 5,375 Fuel inventory 828 1,411 Accounts payable (9,369) (644) Taxes accrued 5,095 568 Interest accrued (3,369) (3,361) Deferred fuel costs 4,557 (1,567) Other working capital accounts (8,934) (3,403) Provision for estimated losses and reserves (579) (431) Changes in other regulatory assets (2,318) (3,867) Other 1,775 3,925 -------- -------- Net cash flow provided by operating activities 4,492 3,737 -------- -------- INVESTING ACTIVITIES Construction expenditures (8,051) (8,997) Allowance for equity funds used during construction 325 206 -------- -------- Net cash flow used in investing activities (7,726) (8,791) -------- -------- FINANCING ACTIVITIES Dividends paid: Preferred stock - (482) -------- -------- Net cash flow used in financing activities - (482) -------- -------- Net decrease in cash and cash equivalents (3,234) (5,536) Cash and cash equivalents at beginning of period 4,454 17,153 -------- -------- Cash and cash equivalents at end of period $1,220 $11,617 ======== ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid/(received) during the period for: Interest - net of amount capitalized $7,014 $6,912 Income taxes ($45) ($5,944) See Notes to Financial Statements.
ENTERGY NEW ORLEANS, INC. BALANCE SHEETS ASSETS March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT ASSETS Cash and cash equivalents $1,220 $4,454 Accounts receivable: Customer 22,568 28,658 Allowance for doubtful accounts (846) (846) Associated companies 257 404 Other 5,911 6,225 Accrued unbilled revenues 17,651 19,820 -------- -------- Total receivables 45,541 54,261 -------- -------- Deferred fuel costs 9,926 14,483 Fuel inventory - at average cost 2,465 3,293 Materials and supplies - at average cost 10,391 10,127 Rate deferrals 21,843 24,788 Prepayments and other 11,281 2,528 -------- -------- TOTAL 102,667 113,934 -------- -------- OTHER PROPERTY AND INVESTMENTS Investment in subsidiary companies - at equity 3,259 3,259 -------- -------- UTILITY PLANT Electric 543,248 541,525 Natural gas 134,491 133,568 Construction work in progress 34,786 29,780 -------- -------- TOTAL UTILITY PLANT 712,525 704,873 Less - accumulated depreciation and amortization 387,680 382,797 -------- -------- UTILITY PLANT - NET 324,845 322,076 -------- -------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: Rate deferrals 7,925 10,974 Unamortized loss on reacquired debt 1,134 1,187 Other regulatory assets 35,357 33,039 Other 833 1,277 -------- -------- TOTAL 45,249 46,477 -------- -------- TOTAL ASSETS $476,020 $485,746 ======== ======== See Notes to Financial Statements.
ENTERGY NEW ORLEANS, INC. BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT LIABILITIES Accounts payable: Associated companies $22,731 $24,350 Other 20,511 28,261 Customer deposits 18,092 17,830 Taxes accrued 5,525 429 Accumulated deferred income taxes 8,017 10,863 Interest accrued 1,587 4,956 Other 5,588 5,524 -------- -------- TOTAL 82,051 92,213 -------- -------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 42,434 43,878 Accumulated deferred investment tax credits 6,249 6,378 SFAS 109 regulatory liability - net 8,545 7,528 Other regulatory liabilities 1,459 1,753 Accumulated provisions 8,257 8,836 Other 8,005 7,733 -------- -------- TOTAL 74,949 76,106 -------- -------- Long-term debt 169,100 169,083 SHAREHOLDERS' EQUITY Preferred stock without sinking fund 19,780 19,780 Common stock, $4 par value, authorized 10,000,000 shares; issued and outstanding 8,435,900 shares in 2000 and 1999 33,744 33,744 Paid-in capital 36,294 36,294 Retained earnings 60,102 58,526 -------- -------- TOTAL 149,920 148,344 -------- -------- Commitments and Contingencies (Notes 1 and 2) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $476,020 $485,746 ======== ======== See Notes to Financial Statements.
ENTERGY NEW ORLEANS, INC. SELECTED OPERATING RESULTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) Increase/ Description 2000 1999 (Decrease) % (In Millions) Electric Operating Revenues: Residential $ 27.5 $ 24.5 $ 3.0 12 Commercial 33.7 30.8 2.9 9 Industrial 5.1 5.3 (0.2) (4) Governmental 14.1 12.9 1.2 9 ---------------------------- Total retail 80.4 73.5 6.9 9 Sales for resale Associated companies 2.6 5.1 (2.5) (49) Non-associated companies 2.2 2.0 0.2 10 Other 1.1 (0.5) 1.6 320 ---------------------------- Total $ 86.3 $ 80.1 $ 6.2 8 ============================ Billed Electric Energy Sales (GWH): Residential 373 364 9 2 Commercial 497 490 7 1 Industrial 91 115 (24) (21) Governmental 233 235 (2) (1) ---------------------------- Total retail 1,194 1,204 (10) (1) Sales for resale Associated companies 83 233 (150) (64) Non-associated companies 44 47 (3) (6) ---------------------------- Total 1,321 1,484 (163) (11) ============================ SYSTEM ENERGY RESOURCES, INC. MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS Net Income Net income increased for the first quarter of 2000 primarily due to increased operating revenues and decreased interest expense. Revenues Operating revenues recover operating expenses, depreciation, and capital costs attributable to Grand Gulf 1. Capital costs are computed by allowing a return on System Energy's common equity funds allocable to its net investment in Grand Gulf 1 and adding to such amount System Energy's effective interest cost for its debt. Operating revenues increased for the first quarter of 2000 as compared to the same period in 1999 due to additional reserves recorded in the first quarter of 1999 for the potential refund of tariffs collected subject to refund in System Energy's rate case pending before FERC. System Energy's proposed rate increase, which is subject to refund, is discussed in Note 2 to the financial statements in the Form 10-K. Operating revenues also increased as a result of Grand Gulf 1 being operational for 20 days more in the first quarter of 2000 than in the first quarter of 1999. Expenses Fuel expenses Fuel expenses increased for the first quarter of 2000 because Grand Gulf 1 was operational for 20 days more in the first quarter of 2000 than in 1999, when maintenance outages occurred. Other operation and maintenance Other operation and maintenance expense decreased primarily due to a larger nuclear insurance refund in 2000 compared to 1999. Other Interest charges Interest on long-term debt decreased for the first quarter of 2000 as a result of the refinancing and redemption of pollution control revenue bonds and the redemption of first mortgage bonds in 1999. Other interest decreased for the first quarter of 2000 due to an adjustment to interest on the potential refund of System Energy's proposed rate increase in the first quarter of 1999. Income taxes The effective income tax rates for the first quarter of 2000 and 1999 were 47.1% and 89.3%, respectively. The decrease in the effective income tax rate is primarily due to an adjustment to the provision for rate refund and its associated accrued interest expense in the first quarter of 1999.
SYSTEM ENERGY RESOURCES, INC. INCOME STATEMENTS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING REVENUES Domestic electric $157,089 $140,617 -------- -------- OPERATING EXPENSES Operating and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 10,683 8,636 Nuclear refueling outage expenses 3,214 3,505 Other operation and maintenance 15,272 18,446 Decommissioning 4,736 4,736 Taxes other than income taxes 5,943 6,752 Depreciation and amortization 28,056 28,860 Other regulatory charges - net 14,745 15,845 -------- -------- TOTAL 82,649 86,780 -------- -------- OPERATING INCOME 74,440 53,837 -------- -------- OTHER INCOME Allowance for equity funds used during construction 732 666 Miscellaneous - net 4,096 4,059 -------- -------- TOTAL 4,828 4,725 -------- -------- INTEREST AND OTHER CHARGES Interest on long-term debt 24,126 25,829 Other interest - net 6,843 26,751 Allowance for borrowed funds used during construction (476) (551) -------- -------- TOTAL 30,493 52,029 -------- -------- INCOME BEFORE INCOME TAXES 48,775 6,533 Income taxes 22,989 5,833 -------- -------- NET INCOME $25,786 $700 ======== ======== See Notes to Financial Statements.
SYSTEM ENERGY RESOURCES, INC. STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2000 and 1999 (Unaudited) 2000 1999 (In Thousands) OPERATING ACTIVITIES Net income $25,786 $700 Noncash items included in net income: Reserve for regulatory adjustments 19,555 23,443 Other regulatory charges - net 14,745 15,845 Depreciation, amortization, and decommissioning 32,792 33,596 Deferred income taxes and investment tax credits (19,377) (35,973) Allowance for equity funds used during construction (732) (666) Changes in working capital: Receivables 103,319 (43,485) Accounts payable 263 (6,034) Taxes accrued 30,056 16,523 Interest accrued (18,587) (14,211) Other working capital accounts (3,424) (1,420) Provision for estimated losses and reserves 15 36,855 Changes in other regulatory assets 11,795 5,293 Other (7,705) 10,276 -------- -------- Net cash flow provided by operating activities 188,501 40,742 -------- -------- INVESTING ACTIVITIES Construction expenditures (9,250) (5,593) Allowance for equity funds used during construction 732 666 Nuclear fuel purchases (7) - Proceeds from sale/leaseback of nuclear fuel 7 - Decommissioning trust contributions and realized change in trust assets (5,790) (5,602) -------- -------- Net cash flow used in investing activities (14,308) (10,529) -------- -------- FINANCING ACTIVITIES Retirement of: Long Term Debt (2,947) (15,820) Dividends paid: Common stock (23,600) - -------- -------- Net cash flow used in financing activities (26,547) (15,820) -------- -------- Net increase in cash and cash equivalents 147,646 14,393 Cash and cash equivalents at beginning of period 35,152 236,841 -------- -------- Cash and cash equivalents at end of period $182,798 $251,234 ======== ======== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid/(received) during the period for: Interest - net of amount capitalized $42,653 $39,413 Income taxes ($4,035) $10,544 Noncash investing and financing activities: Change in unrealized depreciation of decommissioning trust assets ($1,204) ($622) See Notes to Financial Statements.
SYSTEM ENERGY RESOURCES, INC. BALANCE SHEETS ASSETS March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT ASSETS Cash and cash equivalents: Cash $98 $136 Temporary cash investments - at cost, which approximates market 182,700 35,016 ---------- ---------- Total cash and cash equivalents 182,798 35,152 ---------- ---------- Accounts receivable: Associated companies 197,314 301,287 Other 1,323 670 ---------- ---------- Total receivables 198,637 301,957 ---------- ---------- Materials and supplies - at average cost 62,214 61,264 Deferred nuclear refueling outage costs 17,528 18,665 Prepayments and other 5,941 2,251 ---------- ---------- TOTAL 467,118 419,289 ---------- ---------- OTHER PROPERTY AND INVESTMENTS Decommissioning trust funds 139,970 135,384 ---------- ---------- UTILITY PLANT Electric 3,050,466 3,060,324 Property under capital lease 444,850 434,993 Construction work in progress 67,760 58,510 Nuclear fuel under capital lease 70,721 78,020 ---------- ---------- TOTAL UTILITY PLANT 3,633,797 3,631,847 Less - accumulated depreciation and amortization 1,342,039 1,312,559 ---------- ---------- UTILITY PLANT - NET 2,291,758 2,319,288 ---------- ---------- DEFERRED DEBITS AND OTHER ASSETS Regulatory assets: SFAS 109 regulatory asset - net 230,519 242,834 Unamortized loss on reacquired debt 55,121 56,474 Other regulatory assets 186,430 185,910 Other 10,054 9,869 ---------- ---------- TOTAL 482,124 495,087 ---------- ---------- TOTAL ASSETS $3,380,970 $3,369,048 ========== ========== See Notes to Financial Statements.
SYSTEM ENERGY RESOURCES, INC. BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY March 31, 2000 and December 31, 1999 (Unaudited) 2000 1999 (In Thousands) CURRENT LIABILITIES Currently maturing long-term debt $91,800 $77,947 Accounts payable Associated companies 14,344 15,237 Other 19,626 18,470 Taxes accrued 85,439 55,383 Accumulated deferred income taxes 6,684 7,162 Interest accrued 21,412 40,000 Obligations under capital leases 38,421 38,421 Other 1,728 1,651 ---------- ---------- TOTAL 279,454 254,271 ---------- ---------- DEFERRED CREDITS AND OTHER LIABILITIES Accumulated deferred income taxes 457,706 481,945 Accumulated deferred investment tax credits 92,350 93,219 Obligations under capital leases 32,300 39,599 FERC settlement - refund obligation 35,765 37,337 Other regulatory liabilities 83,061 73,313 Decommissioning 135,293 129,503 Regulatory reserves 287,325 267,771 Accumulated provisions 2,032 2,016 Other 16,219 16,014 ---------- ---------- TOTAL 1,142,051 1,140,717 ---------- ---------- Long-term debt 1,065,798 1,082,579 SHAREHOLDERS' EQUITY Common stock, no par value, authorized 1,000,000 shares; issued and outstanding 789,350 shares in 2000 in 1999 789,350 789,350 Retained earnings 104,317 102,131 ---------- ---------- TOTAL 893,667 891,481 ---------- ---------- Commitments and Contingencies (Notes 1 and 2) TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,380,970 $3,369,048 ========== ========== See Notes to Financial Statements.
ENTERGY CORPORATION AND SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE 1. COMMITMENTS AND CONTINGENCIES Capital Requirements and Financing (Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy) See Note 9 to the financial statements in the Form 10-K for information on Entergy's estimated construction expenditures (excluding nuclear fuel), long-term debt and preferred stock maturities, and cash sinking fund requirements for the period 2000- 2002. Sales Warranties and Indemnities (Entergy Corporation) See Note 9 to the financial statements in the Form 10-K for information on certain warranties made by Entergy or its subsidiaries in the Entergy London and CitiPower sales transactions. Nuclear Insurance, Spent Nuclear Fuel, and Decommissioning Costs (Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy) See Note 9 to the financial statements in the Form 10-K for information on nuclear liability, property and replacement power insurance, related NRC regulations, the disposal of spent nuclear fuel, other high-level radioactive waste, and decommissioning costs associated with ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf 1, and Pilgrim. ANO Matters (Entergy Corporation and Entergy Arkansas) See Note 9 to the financial statements in the Form 10-K for information on cracks in a number of steam generator tubes at ANO 2 that were discovered and repaired during an outage in March 1992, and the replacement of the steam generators scheduled for September 2000. Environmental Issues (Entergy Gulf States) Entergy Gulf States has been designated as a potentially responsible party (PRP) for the cleanup of certain hazardous waste disposal sites. Entergy Gulf States is in periodic negotiations with the U.S. Environmental Protection Agency and state authorities regarding the cleanup of certain of these sites. As of March 31, 2000, a remaining recorded liability of approximately $17.8 million existed relating to the cleanup of the remaining sites at which Entergy Gulf States has been designated a PRP. See "Environmental Regulation" in Item 1 of Part I of the Form 10-K for additional discussion of Entergy Gulf States' environmental clean-up activity and related litigation. (Entergy Louisiana and Entergy New Orleans) During 1993, the Louisiana Department of Environmental Quality (LDEQ) issued new rules for solid waste regulation, including regulation of wastewater impoundments. Entergy Louisiana and Entergy New Orleans have determined that certain of their power plant wastewater impoundments were affected by these regulations and chose to upgrade or close them. As a result, remaining recorded liabilities in the amounts of $5.9 million and $0.5 million existed at March 31, 2000 for wastewater upgrades and closures for Entergy Louisiana and Entergy New Orleans, respectively. Completion of this work is awaiting LDEQ approval. City Franchise Ordinances (Entergy New Orleans) Entergy New Orleans provides electric and gas service in the City of New Orleans pursuant to franchise ordinances. These ordinances contain a continuing option for the City to purchase Entergy New Orleans' electric and gas utility properties. Waterford 3 Lease Obligations (Entergy Louisiana) On September 28, 1989, Entergy Louisiana entered into three separate but substantially identical transactions for the sale and leaseback of undivided interests (aggregating approximately 9.3%) in Waterford 3, which were refinanced in 1997. Entergy Louisiana is obligated under certain circumstances to pay amounts sufficient to permit the Owner Participants to withdraw from these lease transactions. Additionally, Entergy Louisiana may be required to assume the outstanding bonds issued by the Owner Trustee under these leases to finance, in part, its acquisition of the undivided interests in Waterford 3. See Note 10 to the financial statements in the Form 10-K for further information. Employment Litigation (Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, and Entergy New Orleans) Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, and Entergy New Orleans are defendants in numerous lawsuits filed by former employees asserting that they were wrongfully terminated and/or discriminated against on the basis of age, race, and/or sex. The defendant companies are vigorously defending these suits and deny any liability to the plaintiffs. However, no assurance can be given as to the outcome of these cases. Cajun - Coal Contracts (Entergy Corporation and Entergy Gulf States) See "Cajun - Coal Contracts" in Note 9 to the financial statements in the Form 10-K for information relating to the declaratory judgment actions filed by Entergy Gulf States in the U.S. Bankruptcy Court in which the Cajun bankruptcy case was pending. The settlement agreement and plan of reorganization have been consummated and effectively release Entergy Gulf States from any claims asserted by the coal suppliers and transporters for Big Cajun 2. Reimbursement Agreement (System Energy) Under a bank letter of credit and reimbursement agreement, System Energy has agreed to a number of covenants relating to the maintenance of certain capitalization and fixed charge coverage ratios. System Energy agreed, during the term of the agreement, to maintain its equity at not less than 33% of its adjusted capitalization (defined in the agreement to include certain amounts not included in capitalization for financial statement purposes). In addition, System Energy must maintain, with respect to each fiscal quarter during the term of the agreement, a ratio of adjusted net income to interest expense (calculated, in each case, as specified in the agreement) of at least 1.60 times earnings. System Energy was in compliance with the above covenants at March 31, 2000. See Note 9 to the financial statements in the Form 10-K for further information. Litigation (Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans) In addition to those proceedings discussed elsewhere herein and in the Form 10-K, Entergy and the domestic utility companies are involved in a number of other legal proceedings and claims in the ordinary course of their businesses. While management is unable to predict the outcome of these other legal proceedings and claims, it is not expected that their ultimate resolutions individually or collectively will have a material adverse effect on results of operations, cash flows, or financial condition of these entities. NOTE 2. RATE AND REGULATORY MATTERS Electric Industry Restructuring Previous developments and information related to electric industry restructuring are presented in Note 2 to the financial statements in the Form 10-K. Texas (Entergy Corporation and Entergy Gulf States) As discussed in Note 2 to the financial statements in the Form 10-K, in June 1999, the Texas legislature enacted a law providing for competition in the electric utility industry through retail open access. The law provides for retail open access by most electric utilities, including Entergy Gulf States, on January 1, 2002. When retail open access is achieved, the generation business and a new retail electricity provider function will become competitive businesses, but transmission and distribution operations will continue to be regulated. The new retail provider function will be the primary point of contact with the customers for most services beyond initiation of electric service and restoration of service following outages. In January 2000, Entergy Gulf States filed a business separation plan with the PUCT as required by the Texas restructuring legislation. The plan provides that Entergy Gulf States will ultimately be divided into a Texas distribution company, a Texas transmission company, a Texas generation company, a Texas retail electricity provider, and a Louisiana company that will encompass distribution, generation and transmission operations. Intervenors in the Texas proceeding have, for the most part, expressed opposition to the plan for various reasons. It is not certain whether the plan will be approved as filed, or whether a different plan will be approved by the PUCT. Entergy Gulf States and other parties to the proceeding are in discussions aimed at determining whether there are modifications to the proposed plan that would be acceptable to all concerned parties. The procedural schedule requires Entergy Gulf States to file an amended business separation plan by June 8, 2000. The timing and outcome of this proceeding is uncertain, and additional regulatory approvals from FERC, the SEC, and the LPSC will be required before any legal separation plan can be implemented. On March 31, 2000, pursuant to the Texas restructuring legislation, Entergy Gulf States filed cost data with the PUCT for its unbundled business functions and proposed tariffs for its unbundled distribution utility. In the filing, Entergy Gulf States is seeking approval for recovery of the following, among other things: o the unbundled distribution utility's cost of service; o a 12% return on equity for the unbundled distribution utility; and o a ten-year non-bypassable charge to recover estimated stranded costs and a non-bypassable charge to recover nuclear decommissioning costs. At a prehearing conference held in April 2000, a procedural schedule for the case was established, calling for a hearing in January 2001. Management cannot predict the outcome of this proceeding. Retail Rate Proceedings Previous developments and information related to retail rate proceedings are presented in Note 2 to the financial statements in the Form 10-K. Filings with the APSC (Entergy Corporation and Entergy Arkansas) In March 2000, Entergy Arkansas filed its annually redetermined energy cost rate with the APSC in accordance with the energy cost recovery rider formula. The filing reflected that an increase was warranted to collect an under-recovery of energy costs for 1999. The increased energy cost recovery rate is effective April 2000 through March 2001. Filings with the PUCT and Texas Cities PUCT Fuel Cost Review (Entergy Corporation and Entergy Gulf States) Based on the settlement agreement discussed in Note 2 to the financial statements in the Form 10-K, Entergy Gulf States adopted a methodology for calculating its fixed fuel factor based on the market price of natural gas. This calculation and any necessary adjustments will occur semi-annually and continue until December 2001. The amounts collected under Entergy Gulf States' fixed fuel factor through December 2001 are subject to fuel reconciliation proceedings before the PUCT, including a fuel reconciliation case filed by Entergy Gulf States in July 1999. In February 2000, Entergy Gulf States reached a settlement with all but one of the parties to that proceeding. Entergy Gulf States reconciled approximately $731 million (after excluding approximately $14 million related to Cajun issues to be handled in a subsequent proceeding) of fuel and purchased power costs. The settlement reduces Entergy Gulf States' requested surcharge in the reconciliation filing from $14.7 million to $2.2 million. This settlement was approved by the PUCT in an order dated April 12, 2000, confirming an interim order that allowed Entergy Gulf States to begin the recovery of the $2.2 million surcharge between April 2000 and January 2001. In addition, Entergy Gulf States agreed to file a fuel reconciliation case by January 12, 2001 covering the period from March 1, 1999 through August 31, 2000. The decrease in the requested surcharge was recorded in March 2000 and is reflected in Entergy Gulf States' operating income. Filings with the LPSC Annual Earnings Reviews (Entergy Corporation and Entergy Gulf States) In May 1997, Entergy Gulf States filed its fourth post-Merger earnings analysis with the LPSC. In March 2000, the LPSC ordered Entergy Gulf States to refund approximately $17.7 million to customers. Entergy Gulf States will appeal the order. Entergy Gulf States has provided adequate reserves for its annual earnings reviews based on management's estimates of the outcome of these proceedings. Fuel Adjustment Clause Litigation (Entergy Corporation and Entergy Louisiana) In May 1998, a group of ratepayers filed a complaint against Entergy Corporation, Entergy Power, and Entergy Louisiana in state court in Orleans Parish purportedly on behalf of all Entergy Louisiana ratepayers. The plaintiffs seek treble damages for alleged injuries arising from alleged violations by the defendants of Louisiana's antitrust laws in connection with the costs included in fuel filings with the LPSC and passed through to ratepayers. Among other things, the plaintiffs allege that Entergy Louisiana improperly introduced certain costs into the calculation of the fuel charges, including high-cost electricity imprudently purchased from its affiliates and high-cost gas imprudently purchased from independent third party suppliers. In addition, plaintiffs seek to recover interest and attorney's fees. Exceptions were filed by Entergy, asserting that this dispute should be litigated before the LPSC and FERC. At the appropriate time, if necessary, Entergy will raise its defenses to the antitrust claims. At present, the suit in state court is stayed by stipulation of the parties. Plaintiffs also requested that the LPSC initiate a review of Entergy Louisiana's monthly fuel adjustment charge filings and force restitution to ratepayers of all costs that the plaintiffs allege were improperly included in those fuel adjustment filings. Marathon Oil Company and Louisiana Energy Users Group have also intervened in the LPSC proceeding. Discovery at the LPSC has been conducted and is expected to continue. Direct testimony was filed with the LPSC by plaintiffs and the intervenors in July 1999. In their testimony for the period 1989 through 1998, plaintiffs purport to quantify many of their claims in an amount totaling $544 million, plus interest. The plaintiffs will likely assert additional damages for the period 1974 through 1988. The Entergy companies filed responsive and rebuttal testimony in September 1999. Rebuttal testimony by the plaintiffs and intervenors was filed in November 1999. Entergy Louisiana and the staff of the LPSC have reached an agreement in principle for the settlement of the matter before the LPSC. The terms of the proposed settlement have not as yet been agreed to by other parties to the LPSC proceeding, and must be approved by the LPSC after any parties contesting the settlement are afforded the opportunity for a hearing. Entergy Louisiana would agree under the proposed terms to refund to customers approximately $72 million in settlement of all claims arising out of or relating to Entergy Louisiana's fuel adjustment clause filings from January 1, 1975 through December 31, 1999, except with respect to purchased power and associated costs included in the fuel adjustment clause filings for the period May 1 through September 30, 1999. Reserves were previously provided by Entergy Louisiana for the refund. If the proposed settlement is approved, Entergy Louisiana would also consent to future fuel cost recovery under a long-term gas contract based on a formula that would likely result in an under-recovery of actual costs under that contract for the remainder of its term, which runs through 2013. The future under-recovery cannot be precisely estimated at this time because it will depend upon factors that are not certain, such as the price of gas and the amount of gas purchased under the long-term contract. In recent years, Entergy Louisiana has made purchases under that contract totaling from $91 million to $121 million annually. Had the proposed settlement terms been applicable to such purchases, the under-recoveries would have ranged from $4 million to $9 million per year. In its intervention, Marathon Oil Company and Louisiana Energy Users Group requested that the LPSC review the prudence of a contract entered into by Entergy Louisiana to purchase energy generated by a hydroelectric facility known as the Vidalia project through the year 2031. Note 9 to the financial statements in the Form 10-K contains further discussions of the obligations related to the Vidalia project. By orders entered by the LPSC in 1985 and 1990, the LPSC approved Entergy Louisiana's entry into the Vidalia contract and Entergy Louisiana's right to recover, through the fuel adjustment clause, the costs of power purchased thereunder. Additionally, the wholesale electric rates under the Vidalia power purchase contract were filed at FERC. In December 1999, the LPSC instituted a review of the following issues relating to the Vidalia project: (i) the LPSC's jurisdiction over the Vidalia project; (ii) Entergy Louisiana's management of the Vidalia contract, including opportunities to restructure or otherwise reform the contract; (iii) the appropriateness of Entergy Louisiana's recovery of 100% of the Vidalia contract costs from ratepayers; (iv) the appropriateness of the fuel adjustment clause as the method for recovering all or part of the Vidalia contract costs; (v) the appropriate regulatory treatment of the Vidalia contract in the event the LPSC approves implementation of retail competition; and (vi) Entergy Louisiana's communication of pertinent information to the LPSC regarding the Vidalia project and contract. Based on its review, the LPSC will determine whether it should disallow any of the costs of the Vidalia project included in the fuel adjustment clause. In March 2000, Entergy Louisiana filed testimony in this sub-docket in which it takes the position that the prudence of the Vidalia contract already has been approved by final orders of the LPSC and that recovery of all amounts paid by Entergy Louisiana related to the Vidalia project pursuant to the FERC-filed rate is appropriate. The LPSC is required to file testimony on May 26, 2000. It is anticipated that hearings in this sub-docket concerning the Vidalia contract will be completed by the end of 2000. (Entergy Corporation and Entergy New Orleans) In April 1999, a group of ratepayers filed a complaint against Entergy New Orleans, Entergy Corporation, Entergy Services, and Entergy Power in state court in Orleans Parish purportedly on behalf of all Entergy New Orleans ratepayers. The plaintiffs seek treble damages for alleged injuries arising from the defendants' alleged violations of Louisiana's antitrust laws in connection with certain costs passed on to ratepayers in Entergy New Orleans' fuel adjustment filings with the Council. In particular, plaintiffs allege that Entergy New Orleans improperly included certain costs in the calculation of fuel charges and that Entergy New Orleans imprudently purchased high-cost fuel from other Entergy affiliates. Plaintiffs allege that Entergy New Orleans and the other defendant Entergy companies conspired to make these purchases to the detriment of Entergy New Orleans' ratepayers and to the benefit of Entergy's shareholders, in violation of Louisiana's antitrust laws. Plaintiffs also seek to recover interest and attorney's fees. Exceptions to the plaintiffs' allegations were filed by Entergy, asserting, among other things, that jurisdiction over these issues rests with the Council and FERC. If necessary, at the appropriate time, Entergy will also raise its defenses to the antitrust claims. At present, the suit in state court is stayed by stipulation of the parties. Plaintiffs also filed this complaint with the Council in order to initiate a review by the Council of their allegations and to force restitution to ratepayers of all costs they allege were improperly and imprudently included in the fuel adjustment filings. Discovery has begun in the proceedings before the Council. In April 2000, testimony was filed on behalf of the plaintiffs in this proceeding. The testimony asserts, among other things, that Entergy New Orleans and other defendants have engaged in fuel procurement and power purchasing practices that could have resulted in New Orleans customers being overcharged by more than $45 million over a period of years. However, it is not clear precisely what periods and damages are being alleged. Entergy intends to defend this matter vigorously, both in court and before the Council. The ultimate outcome of the lawsuit and the Council proceeding cannot be predicted at this time. Filings with the MPSC (Entergy Corporation and Entergy Mississippi) In March 2000, Entergy Mississippi submitted its annual performance-based formula rate plan filing for the 1999 test year. The filing indicated that no change in rate levels was warranted and the current rate levels remain in effect. NOTE 3. COMMON STOCK (Entergy Corporation) During the first quarter of 2000, Entergy Corporation repurchased 7,350,800 shares of common stock in the open market for an aggregate purchase price of approximately $156 million. These shares were purchased pursuant to Entergy's stock repurchase plan and also to fulfill the requirements of various stock-based compensation and benefit plans. During the first quarter of 2000, Entergy Corporation issued 433,940 shares of its previously repurchased common stock to satisfy stock options exercised and employee stock purchases. In addition, Entergy Corporation received proceeds of approximately $2.0 million from the issuance of 89,894 shares of common stock under its dividend reinvestment and stock purchase plan. NOTE 4. LONG-TERM DEBT (Entergy Mississippi) On February 15, 2000, Entergy Mississippi issued $120 million of 7.75% Series First Mortgage Bonds due February 15, 2003. The proceeds are being used for general corporate purposes, including the retirement of short-term indebtedness that was incurred for working capital needs and capital expenditures. (Entergy Arkansas) On March 9, 2000, Entergy Arkansas issued $100 million of 7.72% Series First Mortgage Bonds due March 1, 2003. The proceeds are being used for general corporate purposes, including the retirement of short-term indebtedness that was incurred for working capital needs and capital expenditures. (Entergy Louisiana) On March 1, 2000, Entergy Louisiana redeemed, at maturity, $100 million of 6.00% Series First Mortgage Bonds using funds received from an open-account advance from Entergy Corporation. See "MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS - LIQUIDITY AND CAPITAL RESOURCES" for a further discussion of this advance. NOTE 5. RETAINED EARNINGS (Entergy Corporation) On April 5, 2000, Entergy Corporation's Board of Directors declared a common stock dividend of $0.30 per share, payable on June 1, 2000, to holders of record on May 16, 2000. NOTE 6. BUSINESS SEGMENT INFORMATION (Entergy Corporation) See Note 14 to the financial statements in the Form 10-K for information regarding Entergy's adoption of SFAS 131 and its operating segments. Entergy's segment financial information for the first quarter of 2000 and 1999 is as follows (in thousands):
Domestic Power All Other* Eliminations Consolidated Utility and Marketing System and Energy Trading* 2000 Operating Revenues $1,401,444 $346,157 $ 75,850 $ (11,959) $ 1,811,492 Income Taxes 71,191 5,736 5,898 - 82,825 Net Income 87,338 11,297 9,775 - 108,410 Total Assets 19,556,488 616,853 3,804,322 (615,436) 23,362,227 1999 Operating Revenues $1,286,703 $344,438 $ 12,096 $ (3,315) $ 1,639,922 Income Taxes 59,594 (8,223) (6,198) - 45,173 Net Income 82,576 (14,013) 4,343 - 72,906 Total Assets 20,193,864 572,940 2,630,391 (547,811) 22,849,384
Businesses marked with * are referred to as the "competitive businesses," with the exception of the parent company, Entergy Corporation, which is also included in the "All Other" column. The "All Other" category includes the parent, Entergy Corporation, segments below the quantitative threshold for separate disclosure, and other business activities. Other segments principally include global power development and non-utility nuclear power operations and management. Other business activities principally include the gains on the sales of businesses. The elimination of power marketing and trading mark-to-market profits on intercompany power transactions is also included in "All Other." Eliminations are primarily intersegment activity. __________________________________ In the opinion of the management of Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy, the accompanying unaudited condensed financial statements contain all adjustments (consisting primarily of normal recurring accruals and reclassification of previously reported amounts to conform to current classifications) necessary for a fair statement of the results for the interim periods presented. However, the business of the domestic utility companies and System Energy is subject to seasonal fluctuations with the peak periods occurring during the third quarter. The results for the interim periods presented should not be used as a basis for estimating results of operations for a full year. ENTERGY CORPORATION AND SUBSIDIARIES PART II. OTHER INFORMATION Item 1. Legal Proceedings See "PART I, Item 1, Other Regulation and Litigation" in the Form 10-K for a discussion of legal proceedings affecting Entergy. Set forth below are updates to the information contained in the Form 10-K. Union Pacific Railroad (Entergy Corporation and Entergy Arkansas) See "Union Pacific Railroad" in Item 1 of Part 1 of the Form 10- K for information relating to the civil suit filed by Entergy Arkansas and Entergy Services against Union Pacific Railroad Company (Union Pacific) seeking damages and the termination of coal shipping contracts with Union Pacific because of its failure to meet its contractual obligations to ship coal to Entergy Arkansas' two coal- fired plants. In addition to rescission of the contracts and monetary damages, Entergy is seeking restitution for amounts paid to Union Pacific since the date of material breach that are above reasonable market rates. The case is scheduled for trial beginning in October 2000. Aquila Power Corporation (Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans) See "Aquila Power Corporation" in Item 1 of Part 1 of the Form 10-K for information relating to the complaint filed by Aquila Power Corporation (Aquila) against Entergy Services, as agent for the domestic utility companies, alleging that the domestic utility companies improperly reserved transmission capacity on Entergy's transmission system, resulting in the denial of Aquila's request for transmission service. FERC issued an order in March 2000 responding to Aquila's complaints. While FERC found that Entergy improperly reserved transmission capacity in the past, FERC determined it did not have authority to order monetary damages, and that refunds were not appropriate under the circumstances. Entergy has requested rehearing of certain parts of FERC's ruling. Ratepayer Lawsuits (Entergy Corporation, Entergy Gulf States, Entergy Louisiana, and Entergy New Orleans) See "Ratepayer Lawsuits" in Item 1 of Part I of the Form 10-K for a discussion of the lawsuits filed by ratepayers with the LPSC, the Council, and in Louisiana state courts in Orleans and East Baton Rouge Parishes. See "Fuel Adjustment Clause Litigation" in Note 2 to the financial statements herein for developments that have occurred since the filing of the Form 10-K. Franchise Service Area Litigation (Entergy Gulf States) See "Franchise Service Area Litigation" in Item 1 of Part 1 of the Form 10-K for information relating to the request filed by Beaumont Power and Light Company (BP&L) with the PUCT to obtain a certificate of convenience and necessity for those portions of Jefferson County, Texas, outside the boundaries of any municipality, except for the city of Beaumont, for which Entergy Gulf States provides retail electric service. In April 2000, the ALJ recommended denial of BP&L's application. In May 2000, the PUCT voted to remand the proceeding back to the ALJ to allow BP&L to provide further evidence. No procedural schedule has been set. Ice Storm Litigation (Entergy Corporation and Entergy Gulf States) See "Ice Storm Litigation" in Part I of the Form 10-K for information relating to the lawsuit filed by a group of Entergy Gulf States customers in Texas against Entergy Corporation, Entergy Gulf States, and other Entergy subsidiaries in state court in Jefferson County, Texas purportedly on behalf of all Entergy Gulf States customers in Texas who sustained outages in a January 1997 ice storm. On March 14, 2000, an appellate court affirmed the district court's decision to certify the class. Entergy has filed a motion for rehearing. Litigation Environment (Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy) The four states in which Entergy and the domestic utility companies operate have proven to be unusually litigious environments. Judges and juries in these states, and in particular Louisiana and Texas, have demonstrated a willingness to grant large verdicts, including punitive damages, to plaintiffs in personal injury, property damage, and business tort cases. Entergy uses all appropriate legal means to contest litigation threatened or filed against it, but the litigation environment in these states poses a significant business risk. Item 5. Other Information Earnings Ratios (Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy) The domestic utility companies and System Energy have calculated ratios of earnings to fixed charges and ratios of earnings to combined fixed charges and preferred dividends pursuant to Item 503 of Regulation S-K of the SEC as follows: Ratios of Earnings to Fixed Charges Twelve Months Ended December 31, March 31, 1995 1996 1997 1998 1999 2000 Entergy Arkansas 2.56 2.93 2.54 2.63 2.08 2.48 Entergy Gulf States 1.86 1.47 1.42 1.40 2.18 2.16 Entergy Louisiana 3.18 3.16 2.74 3.18 3.48 3.39 Entergy Mississippi 2.92 3.40 2.98 3.04 2.44 2.48 Entergy New Orleans 3.93 3.51 2.70 2.59 3.00 3.38 System Energy 2.07 2.21 2.31 2.52 1.90 2.37 Ratios of Earnings to Combined Fixed Charges and Preferred Dividends Twelve Months Ended December 31, March 31, 1995 1996 1997 1998 1999 2000 Entergy Arkansas 2.12 2.44 2.24 2.28 1.80 2.14 Entergy Gulf States (a) 1.54 1.19 1.23 1.20 1.86 1.85 Entergy Louisiana 2.60 2.64 2.36 2.75 3.09 3.01 Entergy Mississippi 2.51 2.95 2.69 2.73 2.18 2.22 Entergy New Orleans 3.56 3.22 2.44 2.36 2.74 3.05 (a) "Preferred Dividends" in the case of Entergy Gulf States also include dividends on preference stock. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits* 4(a) - Fifty-fifth Supplemental Indenture, dated as of March 1, 2000, to Entergy Arkansas' Mortgage and Deed of Trust, dated as of October 1, 1944. 27(a) - Financial Data Schedule for Entergy Corporation and Subsidiaries as of March 31, 2000. 27(b) - Financial Data Schedule for Entergy Arkansas as of March 31, 2000. 27(c) - Financial Data Schedule for Entergy Gulf States as of March 31, 2000. 27(d) - Financial Data Schedule for Entergy Louisiana as of March 31, 2000. 27(e) - Financial Data Schedule for Entergy Mississippi as of March 31, 2000. 27(f) - Financial Data Schedule for Entergy New Orleans as of March 31, 2000. 27(g) - Financial Data Schedule for System Energy as of March 31, 2000. 99(a) - Entergy Arkansas' Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Dividends, as defined. 99(b) - Entergy Gulf States' Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Dividends, as defined. 99(c) - Entergy Louisiana's Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Dividends, as defined. 99(d) - Entergy Mississippi's Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Dividends, as defined. 99(e) - Entergy New Orleans' Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Dividends, as defined. 99(f) - System Energy's Computation of Ratios of Earnings to Fixed Charges, as defined. ** 99(g) - Annual Reports on Form 10-K of Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy for the fiscal year ended December 31, 1999, portions of which are incorporated herein by reference as described elsewhere in this document (filed with the SEC in File Nos. 1-11299, 1-10764, 1-2703, 1-8474, 0-320, 0- 5807, and 1-9067, respectively). ___________________________ Pursuant to Item 601(b)(4)(iii) of Regulation S-K, Entergy Corporation agrees to furnish to the Commission upon request any instrument with respect to long-term debt that is not registered or listed herein as an Exhibit because the total amount of securities authorized under such agreement does not exceed ten percent of Entergy Corporation and its subsidiaries on a consolidated basis. * Reference is made to a duplicate list of exhibits being filed as a part of this report on Form 10-Q for the quarter ended March 31, 2000, which list, prepared in accordance with Item 102 of Regulation S-T of the SEC, immediately precedes the exhibits being filed with this report on Form 10-Q for the quarter ended March 31, 2000. ** Incorporated herein by reference as indicated. (b) Reports on Form 8-K Entergy Arkansas A Current Report on Form 8-K, dated March 2, 2000, was filed with the SEC on March 3, 2000, reporting information under Item 5. "Other Events". Entergy Corporation A Current Report on Form 8-K, dated March 28, 2000, was filed with the SEC on March 31, 2000, reporting information under Item 5. "Other Events". SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries. ENTERGY CORPORATION ENTERGY ARKANSAS, INC. ENTERGY GULF STATES, INC. ENTERGY LOUISIANA, INC. ENTERGY MISSISSIPPI, INC. ENTERGY NEW ORLEANS, INC. SYSTEM ENERGY RESOURCES, INC. /s/ Nathan E. Langston Nathan E. Langston Vice President and Chief Accounting Officer (For each Registrant and for each as Principal Accounting Officer) Date: May 12, 2000 EX-4 2 Exhibit 4(a) ENTERGY ARKANSAS, INC. TO BANKERS TRUST COMPANY (successor to Morgan Guaranty Trust Company of New York) AND STANLEY BURG (successor to Henry A. Theis, Herbert E. Twyeffort, Grainger S. Greene and John W. Flaherty) AND (as to property, real or personal, situated or being in Missouri) PETER D. VAN CLEVE (successor to The Boatmen's National Bank of St. Louis and Marvin A. Mueller) As Trustees under Entergy Arkansas, Inc.'s Mortgage and Deed of Trust, dated as of October 1, 1944 ____________________________ FIFTY-FIFTH SUPPLEMENTAL INDENTURE Providing among other things for First Mortgage Bonds, 7.72% Series due March 1, 2003 (Sixty-second Series) ____________________________ Dated as of March 1, 2000 FIFTY-FIFTH SUPPLEMENTAL INDENTURE INDENTURE, dated as of March 1, 2000, between ENTERGY ARKANSAS, INC., a corporation of the State of Arkansas, whose post office address is 425 West Capitol, Little Rock, Arkansas 72201 (hereinafter sometimes called the "Company"), and BANKERS TRUST COMPANY (successor to Morgan Guaranty Trust Company of New York), a corporation of the State of New York, whose post office address is 4 Albany Street, New York, New York 10006 (hereinafter sometimes called the "Corporate Trustee"), and STANLEY BURG (successor to John W. Flaherty, Henry A. Theis, Herbert E. Twyeffort and Grainger S. Greene), and (as to property, real or personal, situated or being in Missouri) PETER D. VAN CLEVE (successor to The Boatmen's National Bank of St. Louis and Marvin A. Mueller), whose post office address is 211 North Broadway, Suite 3600, St. Louis, Missouri 63102, (said Stanley Burg being hereinafter sometimes called the "Co-Trustee", and said Peter D. Van Cleve being hereinafter sometimes called the "Missouri Co- Trustee", and the Corporate Trustee, the Co-Trustee and the Missouri Co-Trustee being hereinafter together sometimes called the "Trustees"), as Trustees under the Mortgage and Deed of Trust, dated as of October 1, 1944 (hereinafter sometimes called the "Mortgage"), which Mortgage was executed and delivered by the Company to secure the payment of bonds issued or to be issued under and in accordance with the provisions of the Mortgage, reference to which Mortgage is hereby made, this indenture (hereinafter called the "Fifty-fifth Supplemental Indenture") being supplemental thereto. WHEREAS, the Mortgage was appropriately filed or recorded in various official records in the States of Arkansas, Missouri, Tennessee and Wyoming; and WHEREAS, an instrument, dated as of July 7, 1949, was executed by the Company appointing Herbert E. Twyeffort as Co- Trustee in succession to Henry A. Theis (resigned) under the Mortgage, and by Herbert E. Twyeffort accepting said appointment, and said instrument was appropriately filed or recorded in various official records in the States of Arkansas, Missouri, Tennessee and Wyoming; and WHEREAS, an instrument, dated as of March 1, 1960, was executed by the Company appointing Grainger S. Greene as Co- Trustee in succession to Herbert E. Twyeffort (resigned) under the Mortgage, and by Grainger S. Greene accepting said appointment, and said instrument was appropriately filed or recorded in various official records in the States of Arkansas, Missouri, Tennessee and Wyoming; and WHEREAS, by the Twenty-first Supplemental Indenture mentioned below, the Company, among other things, appointed John W. Flaherty as Co-Trustee in succession to Grainger S. Greene (resigned) under the Mortgage, and John W. Flaherty accepted said appointment; and WHEREAS, by the Thirty-third Supplemental Indenture mentioned below, the Company, among other things, appointed Marvin A. Mueller as Missouri Co-Trustee, and Marvin A. Mueller accepted said appointment; and WHEREAS, by the Thirty-fifth Supplemental Indenture mentioned below, the Company, among other things, appointed The Boatmen's National Bank of St. Louis as Missouri Co-Trustee in succession to Marvin A. Mueller (resigned) under the Mortgage, and The Boatmen's National Bank of St. Louis accepted said appointment; and WHEREAS, an instrument, dated as of September 1, 1994, was executed by the Company appointing Bankers Trust Company as Trustee, and Stanley Burg as Co-Trustee, in succession to Morgan Guaranty Trust Company of New York (resigned) and John W. Flaherty (resigned), respectively, under the Mortgage and Bankers Trust Company and Stanley Burg accepted said appointments, and said instrument was appropriately filed or recorded in various official records in the States of Arkansas, Missouri, Tennessee and Wyoming; and WHEREAS, by this Fifty-fifth Supplemental Indenture, the Company, the Corporate Trustee and Stanley Burg as Co-Trustee desire to remove The Boatmen's National Bank of St. Louis as Missouri Co-Trustee and appoint Peter D. Van Cleve as the successor thereto and Peter D. Van Cleve desires to accept such appointment; and WHEREAS, by the Mortgage the Company covenanted that it would execute and deliver such supplemental indenture or indentures and such further instruments and do such further acts as might be necessary or proper to carry out more effectually the purposes of the Mortgage and to make subject to the lien of the Mortgage any property thereafter acquired and intended to be subject to the lien thereof; and WHEREAS, the Company executed and delivered to the Trustees the following supplemental indentures: Designation Dated as of First Supplemental Indenture July 1, 1947 Second Supplemental Indenture August 1, 1948 Third Supplemental Indenture October 1, 1949 Fourth Supplemental Indenture June 1, 1950 Fifth Supplemental Indenture October 1, 1951 Sixth Supplemental Indenture September 1, 1952 Seventh Supplemental Indenture June 1, 1953 Eighth Supplemental Indenture August 1, 1954 Ninth Supplemental Indenture April 1, 1955 Tenth Supplemental Indenture December 1, 1959 Eleventh Supplemental Indenture May 1, 1961 Twelfth Supplemental Indenture February 1, 1963 Thirteenth Supplemental Indenture April 1, 1965 Fourteenth Supplemental Indenture March 1, 1966 Fifteenth Supplemental Indenture March 1, 1967 Sixteenth Supplemental Indenture April 1, 1968 Seventeenth Supplemental Indenture June 1, 1968 Eighteenth Supplemental Indenture December 1, 1969 Nineteenth Supplemental Indenture August 1, 1970 Twentieth Supplemental Indenture March 1, 1971 Twenty-first Supplemental Indenture August 1, 1971 Twenty-second Supplemental Indenture April 1, 1972 Twenty-third Supplemental Indenture December 1, 1972 Twenty-fourth Supplemental Indenture June 1, 1973 Twenty-fifth Supplemental Indenture December 1, 1973 Twenty-sixth Supplemental Indenture June 1, 1974 Twenty-seventh Supplemental Indenture November 1, 1974 Twenty-eighth Supplemental Indenture July 1, 1975 Twenty-ninth Supplemental Indenture December 1, 1977 Thirtieth Supplemental Indenture July 1, 1978 Thirty-first Supplemental Indenture February 1, 1979 Thirty-second Supplemental Indenture December 1, 1980 Thirty-third Supplemental Indenture January 1, 1981 Thirty-fourth Supplemental Indenture August 1, 1981 Thirty-fifth Supplemental Indenture February 1, 1982 Thirty-sixth Supplemental Indenture December 1, 1982 Thirty-seventh Supplemental Indenture February 1, 1983 Thirty-eighth Supplemental Indenture December 1, 1984 Thirty-ninth Supplemental Indenture December 1, 1985 Fortieth Supplemental Indenture July 1, 1986 Forty-first Supplemental Indenture July 1, 1989 Forty-second Supplemental Indenture February 1, 1990 Forty-third Supplemental Indenture October 1, 1990 Forty-fourth Supplemental Indenture November 1, 1990 Forty-fifth Supplemental Indenture January 1, 1991 Forty-sixth Supplemental Indenture August 1, 1992 Forty-seventh Supplemental Indenture November 1, 1992 Forty-eighth Supplemental Indenture June 15, 1993 Forty-ninth Supplemental Indenture August 1, 1993 Fiftieth Supplemental Indenture October 1, 1993 Fifty-first Supplemental Indenture October 1, 1993 Fifty-second Supplemental Indenture June 15, 1994 Fifty-third Supplemental Indenture March 1, 1996 Fifty-fourth Supplemental Indenture March 1, 1997 which supplemental indentures were appropriately filed or recorded in various official records in the States of Arkansas, Missouri, Tennessee and Wyoming; and WHEREAS, in addition to the property described in the Mortgage, as heretofore supplemented, the Company has acquired certain other property, rights and interests in property; and WHEREAS, the Company has heretofore issued, in accordance with the provisions of the Mortgage, as supplemented, the following series of First Mortgage Bonds: Principal Principal Amount Amount Series Issued Outstanding 03 1/8% Series due 1974 $ 30,000,000 None 02 7/8% Series due 1977 11,000,000 None 03 1/8% Series due 1978 7,500,000 None 02 7/8% Series due 1979 8,700,000 None 02 7/8% Series due 1980 6,000,000 None 03 5/8% Series due 1981 8,000,000 None 03 1/2% Series due 1982 15,000,000 None 04 1/4% Series due 1983 18,000,000 None 03 1/4% Series due 1984 7,500,000 None 03 3/8% Series due 1985 18,000,000 None 05 5/8% Series due 1989 15,000,000 None 04 7/8% Series due 1991 12,000,000 None 04 3/8% Series due 1993 15,000,000 None 04 5/8% Series due 1995 25,000,000 None 05 3/4% Series due 1996 25,000,000 None 05 7/8% Series due 1997 30,000,000 None 07 3/8% Series due 1998 15,000,000 None 09 1/4% Series due 1999 25,000,000 None 09 5/8% Series due 2000 25,000,000 None 07 5/8% Series due 2001 30,000,000 None 08 0/0% Series due August 1, 2001 30,000,000 None 07 3/4% Series due 2002 35,000,000 None 07 1/2% Series due December 1, 2002 15,000,000 None 08 0/0% Series due 2003 40,000,000 None 08 1/8% Series due December 1, 2003 40,000,000 None 10 1/2% Series due 2004 40,000,000 None 09 1/4% Series due November 1, 1981 60,000,000 None 10 1/8% Series due July 1, 2005 40,000,000 None 09 1/8% Series due December 1, 2007 75,000,000 None 09 7/8% Series due July 1, 2008 75,000,000 None 10 1/4% Series due February 1, 2009 60,000,000 None 16 1/8% Series due December 1, 1986 70,000,000 None 04 1/2% Series due September 1, 1983 1,202,000 None 05 1/2% Series due January 1, 1988 598,310 None 05 5/8% Series due May 1, 1990 1,400,000 None 06 1/4% Series due December 1, 1996 3,560,000 None 09 3/4% Series due September 1, 2000 4,600,000 None 08 3/4% Series due March 1, 1998 9,800,000 None 17 3/8% Series due August 1, 1988 75,000,000 None 16 1/2% Series due February 1, 1991 80,000,000 None 13 3/8% Series due December 1, 2012 75,000,000 None 13 1/4% Series due February 1, 2013 25,000,000 None 14 1/8% Series due December 1, 2014 100,000,000 None Pollution Control Series A 128,800,000 None 10 1/4% Series due July 1, 2016 50,000,000 None 09 3/4% Series due July 1, 2019 75,000,000 None 10 0/0% Series due February 1, 2020 150,000,000 None 10 3/8% Series due October 1, 2020 175,000,000 None Solid Waste Disposal Series A 21,066,667 $ 21,066,667 Solid Waste Disposal Series B 28,440,000 28,440,000 07 1/2% Series due August 1, 2007 100,000,000 100,000,000 07.90% Series due November 1, 2002 25,000,000 None 08.70% Series due November 1, 2022 25,000,000 None Pollution Control Series B 46,875,000 46,875,000 06.65% Series due August 1, 2005 115,000,000 115,000,000 06 0/0% Series due October 1, 2003 155,000,000 155,000,000 07 0/0% Series due October 1, 2023 175,000,000 175,000,000 Pollution Control Series C 20,319,000 20,319,000 Pollution Control Series D 9,586,400 9,586,400 08 3/4% Series due March 1, 2026 85,000,000 85,000,000 7% Series due March 1, 2002 85,000,000 85,000,000 which bonds are also hereinafter sometimes called bonds of the First through Sixty-first Series, respectively; and WHEREAS, Section 8 of the Mortgage provides that the form of each series of bonds (other than the First Series) issued thereunder and of the coupons to be attached to coupon bonds of such series shall be established by Resolution of the Board of Directors of the Company and that the form of such series, as established by said Board of Directors, shall specify the descriptive title of the bonds and various other terms thereof, and may also contain such provisions not inconsistent with the provisions of the Mortgage as the Board of Directors may, in its discretion, cause to be inserted therein expressing or referring to the terms and conditions upon which such bonds are to be issued and/or secured under the Mortgage; and WHEREAS, Section 120 of the Mortgage provides, among other things, that any power, privilege or right expressly or impliedly reserved to or in any way conferred upon the Company by any provision of the Mortgage, whether such power, privilege or right is in any way restricted or is unrestricted, may be in whole or in part waived or surrendered or subjected to any restriction if at the time unrestricted or to additional restriction if already restricted, and the Company may enter into any further covenants, limitations or restrictions for the benefit of any one or more series of bonds issued thereunder, or the Company may cure any ambiguity contained therein or in any supplemental indenture, or may establish the terms and provisions of any series of bonds other than said First Series, by an instrument in writing executed and acknowledged by the Company in such manner as would be necessary to entitle a conveyance of real estate to record in all of the states in which any property at the time subject to the lien of the Mortgage shall be situated; and WHEREAS, the Company now desires to create a new series of bonds and (pursuant to the provisions of Section 120 of the Mortgage) to add to its covenants and agreements contained in the Mortgage, as heretofore supplemented, certain other covenants and agreements to be observed by it and to alter and amend in certain respects the covenants and provisions contained in the Mortgage, as heretofore supplemented; and WHEREAS, the execution and delivery by the Company of this Fifty-fifth Supplemental Indenture, and the terms of the bonds of the Sixty-second Series, hereinafter referred to, have been duly authorized by the Board of Directors of the Company by appropriate Resolutions of said Board of Directors; NOW, THEREFORE, THIS INDENTURE WITNESSETH: That, pursuant to Section 103 of the Mortgage, The Boatmen's National Bank of St. Louis is hereby removed as Missouri Co- Trustee under the Mortgage, effective as of the close of business on March 1, 2000. That, pursuant to Section 103 of the Mortgage, the undersigned Entergy Arkansas, Inc., Bankers Trust Company and Stanley Burg appoint Peter D. Van Cleve, and Peter D. Van Cleve does hereby accept the appointment, as successor Missouri Co- Trustee under the Mortgage, subject to the conditions in Article XVII thereof expressed, effective as of the close of business on March 1, 2000. That the Company, in consideration of the premises and of One Dollar to it duly paid by the Trustees at or before the ensealing and delivery of these presents, the receipt whereof is hereby acknowledged, and in further evidence of assurance of the estate, title and rights of the Trustees and in order further to secure the payment of both the principal of and interest and premium, if any, on the bonds from time to time issued under the Mortgage, according to their tenor and effect and the performance of all the provisions of the Mortgage (including any instruments supplemental thereto and any modifications made as in the Mortgage provided) and of said bonds, hereby grants, bargains, sells, releases, conveys, assigns, transfers, mortgages, hypothecates, affects, pledges, sets over and confirms (subject, however, to Excepted Encumbrances as defined in Section 6 of the Mortgage) unto Peter D. Van Cleve (as to property, real or personal, situated or being in Missouri) and Stanley Burg (but, as to property, real or personal, situated or being in Missouri, only to the extent of his legal capacity to hold the same for the purposes hereof) and (to the extent of its legal capacity to hold the same for the purposes hereof) to Bankers Trust Company, as Trustees under the Mortgage, and to their successor or successors in said trust, and to them and their successors and assigns forever, all property, real, personal or mixed, of any kind or nature acquired by the Company after the date of the execution and delivery of the Mortgage (except any herein or in the Mortgage, as heretofore supplemented, expressly excepted), now owned or, subject to the provisions of Section 87 of the Mortgage, hereafter acquired by the Company (by purchase, consolidation, merger, donation, construction, erection or in any other way) and wheresoever situated, including (without in anywise limiting or impairing by the enumeration of the same the scope and intent of the foregoing or of any general description contained in this Fifty-fifth Supplemental Indenture) all lands, power sites, flowage rights, water rights, water locations, water appropriations, ditches, flumes, reservoirs, reservoir sites, canals, raceways, dams, dam sites, aqueducts, and all other rights or means for appropriating, conveying, storing and supplying water; all rights of way and roads; all plants for the generation of electricity by steam, water and/or other power; all power houses, gas plants, street lighting systems, standards and other equipment incidental thereto; all street and interurban railway and transportation lines and systems, terminal systems and facilities; all bridges, culverts, tracks, railways, sidings, spurs, wyes, roadbeds, trestles and viaducts; all overground and underground trolleys and feeder wires; all telephone, radio and television systems, air-conditioning systems and equipment incidental thereto, water works, water systems, steam heat and hot water plants, substations, lines, service and supply systems, ice or refrigeration plants and equipment, offices, buildings and other structures and the equipment thereof, all machinery, engines, boilers, dynamos, electric, gas and other machines, regulators, meters, transformers, generators, motors, electrical, gas and mechanical appliances, conduits, cables, water, steam heat, gas or other pipes, gas mains and pipes, service pipes, fittings, valves and connections, pole and transmission lines, wires, cables, tools, implements, apparatus, furniture and chattels; all municipal and other franchises, consents or permits; all lines for the transmission and distribution of electric current, gas, steam heat or water for any purpose including towers, poles, wires, cables, pipes, conduits, ducts and all apparatus for use in connection therewith; all real estate, lands, easements, servitudes, licenses, permits, franchises, privileges, rights of way and other rights in or relating to real estate or the occupancy of the same and (except as herein or in the Mortgage, as heretofore supplemented, expressly excepted) all the right, title and interest of the Company in and to all other property of any kind or nature appertaining to and/or used and/or occupied and/or enjoyed in connection with any property hereinbefore or in the Mortgage, as heretofore supplemented, described. TOGETHER WITH all and singular the tenements, hereditaments, prescriptions, servitudes and appurtenances belonging or in anywise appertaining to the aforesaid property or any part thereof, with the reversion and reversions, remainder and remainders and (subject to the provisions of Section 57 of the Mortgage) the tolls, rents, revenues, issues, earnings, income, product and profits thereof and all the estate, right, title and interest and claim whatsoever, at law as well as in equity, which the Company now has or may hereafter acquire in and to the aforesaid property and franchises and every part and parcel thereof. IT IS HEREBY AGREED by the Company that, subject to the provisions of Section 87 of the Mortgage, all the property, rights and franchises acquired by the Company (by purchase, consolidation, merger, donation, construction, erection or in any other way) after the date hereof, except any herein or in the Mortgage, as heretofore supplemented, expressly excepted, shall be and are as fully granted and conveyed hereby and by the Mortgage and as fully embraced within the lien hereof and the lien of the Mortgage, as heretofore supplemented, as if such property, rights and franchises were now owned by the Company and were specifically described herein or in the Mortgage and conveyed hereby or thereby. PROVIDED THAT the following are not and are not intended to be now or hereafter granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, hypothecated, affected, pledged, set over or confirmed hereunder and are hereby expressly excepted from the lien and operation of this Fifty-fifth Supplemental Indenture and from the lien and operation of the Mortgage, as heretofore supplemented, viz: (1) cash, shares of stock, bonds, notes and other obligations and other securities not hereafter specifically pledged, paid, deposited, delivered or held under the Mortgage or covenanted so to be; (2) merchandise, equipment, materials or supplies held for the purpose of sale in the usual course of business or for the purpose of repairing or replacing (in whole or in part) any street cars, rolling stock, trolley coaches, motor coaches, buses, automobiles or other vehicles or aircraft, and fuel, oil and similar materials and supplies consumable in the operation of any properties of the Company; street cars, rolling stock, trolley coaches, motor coaches, buses, automobiles and other vehicles and all aircraft; (3) bills, notes and accounts receivable, judgments, demands and choses in action, and all contracts, leases and operating agreements not specifically pledged under the Mortgage, as heretofore supplemented, or covenanted so to be; the Company's contractual rights or other interest in or with respect to tires not owned by the Company; (4) the last day of the term of any lease or leasehold which may hereafter become subject to the lien of the Mortgage; (5) electric energy, gas, ice, and other materials or products generated, manufactured, produced or purchased by the Company for sale, distribution or use in the ordinary course of its business; all timber, minerals, mineral rights and royalties; (6) the Company's franchise to be a corporation; (7) the properties heretofore sold or in the process of being sold by the Company and heretofore released from the Mortgage and Deed of Trust dated as of October 1, 1926 from Arkansas Power & Light Company to Guaranty Trust Company of New York, trustee, and specifically described in a release instrument executed by Guaranty Trust Company of New York, as trustee, dated October 13, 1938, which release has heretofore been delivered by the said trustee to the Company and recorded by the Company in the office of the Recorder for Garland County, Arkansas, in Record Book 227, Page 1, all of said properties being located in Garland County, Arkansas; and (8) any property heretofore released pursuant to any provisions of the Mortgage and not heretofore disposed of by the Company; provided, however, that the property and rights expressly excepted from the lien and operation of the Mortgage, as heretofore supplemented, and this Fifty-fifth Supplemental Indenture in the above subdivisions (2) and (3) shall (to the extent permitted by law) cease to be so excepted in the event and as of the date that any or all of the Trustees or a receiver or trustee shall enter upon and take possession of the Mortgaged and Pledged Property in the manner provided in Article XIII of the Mortgage by reason of the occurrence of a Default as defined in Section 65 thereof. TO HAVE AND TO HOLD all such properties, real, personal and mixed, granted, bargained, sold, released, conveyed, assigned, transferred, mortgaged, hypothecated, affected, pledged, set over or confirmed by the Company as aforesaid, or intended so to be, unto Peter D. Van Cleve (as to property, real or personal, situated or being in Missouri), and unto Stanley Burg (but, as to property, real or personal, situated or being in Missouri, only to the extent of his legal capacity to hold the same for the purposes hereof) and (to the extent of its legal capacity to hold the same for the purposes hereof) unto Bankers Trust Company, as Trustees, and their successors and assigns forever. IN TRUST NEVERTHELESS, for the same purposes and upon the same terms, trusts and conditions and subject to and with the same provisos and covenants as are set forth in the Mortgage, as heretofore supplemented, this Fifty-fifth Supplemental Indenture being supplemental to the Mortgage. AND IT IS HEREBY COVENANTED by the Company that all the terms, conditions, provisos, covenants and provisions contained in the Mortgage, as heretofore supplemented, shall affect and apply to the property hereinbefore described and conveyed and to the estate, rights, obligations and duties of the Company and Trustees and the beneficiaries of the trust with respect to said property, and to the Trustees and their successors in the trust in the same manner and with the same effect as if said property had been owned by the Company at the time of the execution of the Mortgage, and had been specifically and at length described in and conveyed to said Trustees, by the Mortgage as a part of the property therein stated to be conveyed. The Company further covenants and agrees to and with the Trustees and their successors in said trust under the Mortgage, as follows: ARTICLE I Sixty-second Series of Bonds SECTION 1. There shall be a series of bonds designated "7.72% Series due March 1, 2003" (herein sometimes called the "Sixty-second Series"), each of which shall also bear the descriptive title "First Mortgage Bond", and the form thereof, which shall be established by Resolution of the Board of Directors of the Company, shall contain suitable provisions with respect to the matters hereinafter in this Section specified. Bonds of the Sixty-second Series (which shall be initially issued in the aggregate principal amount of $100,000,000) shall mature on March 1, 2003, shall be issued as fully registered bonds in the denomination of One Thousand Dollars and, at the option of the Company, in any multiple or multiples of One Thousand Dollars (the exercise of such option to be evidenced by the execution and delivery thereof), shall bear interest at the rate of 7.72% per annum, the first interest payment to be made on September 1, 2000 for the period from March 9, 2000 to September 1, 2000 with subsequent interest payments payable semi-annually on March 1 and September 1 of each year, shall be dated as in Section 10 of the Mortgage provided, and the principal of and interest on each said bond shall be payable at the office or agency of the Company in the Borough of Manhattan, The City of New York, in such coin or currency of the United States of America as at the time of payment is legal tender for public and private debts. (I) Bonds of the Sixty-second Series shall be redeemable at the option of the Company in whole at any time, or in part from time to time, prior to maturity, upon notice, as provided in Section 52 of the Mortgage, mailed not less than 30 days nor more than 60 days prior to the date fixed for redemption, at a redemption price equal to the greater of (i) 100% of the principal amount of the bonds of the Sixty-second Series to be redeemed and (ii) as determined by an Independent Investment Banker, the sum of the present values of the remaining scheduled payments of principal of and interest on the bonds of the Sixty- second Series being redeemed (excluding the portion of any such interest accrued to the redemption date) discounted (for purposes of determining such present values) to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30- day months) at the Adjusted Treasury Rate, plus .125%, plus, in each case, accrued interest thereon to the redemption date. "Adjusted Treasury Rate" means, with respect to any redemption date, (1) the yield, under the heading which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated "H.15(519)" or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption "Treasury Constant Maturities," for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the remaining term of the bonds of the Sixty- second Series, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or (2) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. The Adjusted Treasury Rate shall be calculated on the third Business Day preceding the redemption date. "Business Day" means any day other than a Saturday or a Sunday or a day on which banking institutions in The City of New York are authorized or required by law or executive order to remain closed or a day on which the Corporate Trust Office of the Corporate Trustee is closed for business. "Comparable Treasury Issue" means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Bonds of the Sixty-second Series that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Bonds of the Sixty-second Series. "Comparable Treasury Price" means, with respect to any redemption date, (i) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations or (ii) if the Independent Investment Banker obtains fewer than three such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations. "Independent Investment Banker" means one of the Reference Treasury Dealers appointed by the Company. "Reference Treasury Dealer" means each of Salomon Smith Barney Inc., Banc One Capital Markets, Inc., Barclays Capital Inc., and Scotia Capital (USA) Inc. and their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a "Primary Treasury Dealer"), the Company shall substitute therefor another Primary Treasury Dealer. "Reference Treasury Dealer Quotations" means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by an Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to such Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m. on the third Business Day preceding such redemption date. (II) Bonds of the Sixty-second Series shall also be redeemable in whole at any time, or in part from time to time, prior to maturity, upon like notice, by the application (either at the option of the Company or pursuant to the requirements of the Mortgage) of cash delivered to or deposited with the Corporate Trustee pursuant to the provisions of Section 37 or Section 64 of the Mortgage at the special redemption price of 100% of the principal amount of the bonds of the Sixty-second Series to be redeemed plus accrued interest thereon to the redemption date. (III) At the option of the registered owner, any bonds of the Sixty-second Series, upon surrender thereof for cancellation at the office or agency of the Company in the Borough of Manhattan, The City of New York, shall be exchangeable for a like aggregate principal amount of bonds of the same series of other authorized denominations. Bonds of the Sixty-second Series shall be transferable, upon the surrender thereof for cancellation, together with a written instrument of transfer in form approved by the registrar duly executed by the registered owner or by his duly authorized attorney, at the office or agency of the Company in the Borough of Manhattan, The City of New York.. Upon any exchange or transfer of bonds of the Sixty-second Series, the Company may make a charge therefor sufficient to reimburse it for any tax or taxes or other governmental charge, as provided in Section 12 of the Mortgage, but the Company hereby waives any right to make a charge in addition thereto for any exchange or transfer of bonds of said Series. Upon the delivery of this Fifty-fifth Supplemental Indenture and upon compliance with the applicable provisions of the Mortgage, as heretofore supplemented, there shall be an initial issue of bonds of the Sixty-second Series for the aggregate principal amount of $100,000,000. ARTICLE II DIVIDEND COVENANT SECTION 2. The Company covenants that, so long as any of the bonds of the Sixty-second Series are Outstanding, it will not declare any dividends on its Common Stock (other than (a) a dividend payable solely in shares of its Common Stock, or (b) a dividend payable in cash in cases where, concurrently with the payment of such dividend, an amount in cash equal to such dividend is received by the Company as a capital contribution or as the proceeds of the issue and sale of shares of its Common Stock) or make any distribution on outstanding shares of its Common Stock or purchase or otherwise acquire for value any outstanding shares of its Common Stock (otherwise than in exchange for or out of the proceeds from the sale of other shares of its Common Stock) if, after such dividend, distribution, purchase or acquisition, the aggregate amount of such dividends, distributions, purchases and acquisitions paid or made subsequent to February 29, 2000 (other than any dividend declared by the Company on or before February 29, 2000) exceeds (without giving effect to (i) any of such dividends, distributions, purchases or acquisitions, or (ii) any net transfers from retained earnings to stated capital accounts) the sum of (a) the aggregate amount credited subsequent to February 29, 2000 to retained earnings, (b) $350,000,000 and (c) such additional amount as shall be authorized or approved, upon application by the Company, by the Securities and Exchange Commission, or by any successor commission thereto, under the Public Utility Holding Company Act of 1935. For the purposes of this Section 2 the aggregate amount credited subsequent to February 29, 2000 to retained earnings shall be determined in accordance with generally accepted accounting principles and practices after making provision for dividends upon any preferred stock of the Company, accumulated subsequent to such date, but in such determination there shall not be considered charges to retained earnings applicable to the period prior to February 29, 2000, including, but not limited to, charges to retained earnings for write-offs or write-downs of book values of assets owned by the Company on February 29, 2000. ARTICLE III MISCELLANEOUS PROVISIONS SECTION 3. The holders of the bonds of the Sixty-second Series shall be deemed to have consented and agreed that the Company may, but shall not be obligated to, fix a record date for the purpose of determining the holders of the bonds of the Sixty- second Series entitled to consent to any amendment or supplement to the Mortgage or the waiver of any provision thereof or any act to be performed thereunder. If a record date is fixed, those persons who were holders at such record date (or their duly designated proxies), and only those persons, shall be entitled to consent to such amendment, supplement or waiver or to revoke any consent previously given, whether or not such persons continue to be holders after such record date. No such consent shall be valid or effective for more than 90 days after such record date. SECTION 4. Subject to the amendments provided for in this Fifty-fifth Supplemental Indenture, the terms defined in the Mortgage and the First through Fifty-fourth Supplemental Indentures shall, for all purposes of this Fifty-fifth Supplemental Indenture, have the meanings specified in the Mortgage and the First through Fifty-fourth Supplemental Indentures. SECTION 5. The Trustees hereby accept the trusts herein declared, provided, created or supplemented and agree to perform the same upon the terms and conditions herein and in the Mortgage and in the First through Fifty-fourth Supplemental Indentures set forth and upon the following terms and conditions: The Trustees shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Fifty-fifth Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made by the Company solely. In general each and every term and condition contained in Article XVII of the Mortgage, as heretofore amended, shall apply to and form part of this Fifty-fifth Supplemental Indenture with the same force and effect as if the same were herein set forth in full with such omissions, variations and insertions, if any, as may be appropriate to make the same conform to the provisions of this Fifty-fifth Supplemental Indenture. SECTION 6. Whenever in this Fifty-fifth Supplemental Indenture either of the parties hereto is named or referred to, this shall, subject to the provisions of Articles XVI and XVII of the Mortgage, as heretofore amended, be deemed to include the successors and assigns of such party, and all the covenants and agreements in this Fifty-fifth Supplemental Indenture contained by or on behalf of the Company, or by or on behalf of the Trustees, or either of them, shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not. SECTION 7. Nothing in this Fifty-fifth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or give to, any person, firm or corporation, other than the parties hereto and the holders of the bonds and coupons Outstanding under the Mortgage, any right, remedy or claim under or by reason of this Fifty-fifth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises or agreements in this Fifty-fifth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the holders of the bonds and of the coupons Outstanding under the Mortgage. SECTION 8. This Fifty-fifth Supplemental Indenture shall be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 9. This Fifty-fifth Supplemental Indenture shall be construed in accordance with and governed by the laws of the State of New York. IN WITNESS WHEREOF, ENTERGY ARKANSAS, INC. has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by its President or one of its Vice Presidents, and its corporate seal to be attested by its Secretary or one of its Assistant Secretaries for and in its behalf, and BANKERS TRUST COMPANY has caused its corporate name to be hereunto affixed, and this instrument to be signed and sealed by, one of its Vice Presidents or one of its Assistant Vice Presidents, and its corporate seal to be attested by one of its Assistant Secretaries or one of its Assistant Treasurers or one of its Assistant Vice Presidents for and in its behalf, and STANLEY BURG has hereunto set his hand and affixed his seal, and PETER D. VAN CLEVE has hereunto set his hand and affixed his seal, as of the day and year first above written. ENTERGY ARKANSAS, INC. By: .......................... Senior Vice President Attest: ........................................... Assistant Secretary Executed, sealed and delivered by Entergy Arkansas, Inc. in the presence of: .......................................... ........................................... BANKERS TRUST COMPANY, As Corporate Trustee By: ....................... Vice President Attest: .................................. Stanley Burg Assistant Vice President As Co-Trustee ................................[L.S.] Executed, sealed and delivered by Bankers Trust Company and Stanley Burg in the presence of: .................................. .................................. ........................... PETER D. VAN CLEVE As Co-Trustee as to property, real or personal, situated or being in Missouri Executed, sealed and delivered by PETER D. VAN CLEVE in the presence of: ............................................................. .............................................................. STATE OF LOUISIANA ) ) SS.: PARISH OF ORLEANS ) On this ____ day of March, 2000, before me, _________________, a Notary Public duly commissioned, qualified and acting within and for said Parish and State, appeared in person the within named ___________________ and _____________________, to me personally well known, who stated that they were the ______________________________ and an Assistant Secretary, respectively, of ENTERGY ARKANSAS, INC., a corporation, and were duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said corporation, and further stated and acknowledged that they had so signed, executed and delivered said foregoing instrument for the consideration, uses and purposes therein mentioned and set forth. On the ____ day of March, 2000, before me personally came ___________________, to me known, who, being by me duly sworn, did depose and say that he resides at ____________________, New Orleans, Louisiana _____; that he is the ______________________________ of ENTERGY ARKANSAS, INC., one of the corporations described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation, and that he signed his name thereto by like order. On the ____ day of March, 2000, before me appeared ___________________, to me personally known, who, being by me duly sworn, did say that he is the ______________________________ of ENTERGY ARKANSAS, INC., and that the seal affixed to the foregoing instrument is the corporate seal of said corporation, and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors, and he acknowledged said instrument to be the free act and deed of said corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal at my office in said Parish and State the day and year last above written. ______________________________________ Notary Public Parish of Orleans, State of Louisiana My Commission is Issued for Life STATE OF NEW YORK ) ) SS.: COUNTY OF NEW YORK ) On this 8th day of March, 2000, before me, Nicole G. Dervan, a Notary Public duly commissioned, qualified and acting within and for said County and State, appeared JACQUELINE BARTNICK and SUSAN JOHNSON, to me personally well known, who stated that they were a Vice President and Assistant Vice President, respectively, of BANKERS TRUST COMPANY, a corporation, and were duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said corporation; and further stated and acknowledged that they had so signed, executed and delivered said foregoing instrument for the consideration, uses and purposes therein mentioned and set forth. On the 8th day of March, 2000, before me personally came JACQUELINE BARTNICK, to me known, who, being by me duly sworn, did depose and say that she resides at 49 Red Hill Road, Warren, New Jersey 07059; that she is a Vice President of BANKERS TRUST COMPANY, one of the corporations described in and which executed the above instrument; that she knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by authority of the Board of Directors of said corporation, and that she signed her name thereto by like authority. On the 6th day of March, 2000, before me appeared JACQUELINE BARTNICK, to me personally known, who, being by me duly sworn, did say that she is a Vice President of BANKERS TRUST COMPANY, and that the seal affixed to the foregoing instrument is the corporate seal of said corporation, and that said instrument was signed and sealed in behalf of said corporation by authority of its Board of Directors, and she acknowledged said instrument to be the free act and deed of said corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal at my office in said County and State the day and year last above written. ___________________________________ Nicole G. Dervan Notary Public, State of New York No. 01DE6003896 Qualified in New York County Commission Expires _________________ STATE OF NEW YORK ) ) SS.: COUNTY OF NEW YORK ) On this ____ day of March, 2000, before me, ________________, the undersigned, personally appeared ________________, known to me to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained. On the ____ day of March, 2000, before me personally appeared ________________, to me known to be the person described in and who executed the foregoing instrument, and acknowledged that he executed the same as his free act and deed. IN WITNESS WHEREOF, I hereunto set my hand and official seal. _____________________________________ Notary Public, State of New York No. __________ Qualified in _____ County Commission Expires _________________ STATE OF MISSOURI ) ) SS.: CITY OF ST. LOUIS ) On this 7th day of March, 2000, before me, Connie B. Walsh, the undersigned, personally appeared Peter D. Van Cleve, known to me to be the person whose name is subscribed to the within instrument, and acknowledged that he executed the same for the purposes therein contained. On the 7th day of March, 2000, before me personally appeared Peter D. Van Cleve, to me known to be the person described in and who executed the foregoing instrument, and acknowledged that he executed the same as his free act and deed. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal at my office in said City and State the day and year last above written. _________________ EX-27 3
UT This schedule contains summary financial information extracted from Entergy Corporation and Subsidiaries financial statements for the quarter ended March 31, 2000 and is qualified in its entirety by reference to such financial statements. 0000065984 ENTERGY CORPORATION AND SUBSIDIARIES 023 ENTERGY CORPORATION AND SUBSIDIARIES 1,000 3-MOS DEC-31-2000 MAR-31-2000 PER-BOOK 15,670,314 1,833,326 3,332,374 2,526,213 0 23,362,227 2,472 4,636,474 2,814,499 6,996,548 284,650 485,961 6,885,702 350,716 0 0 175,408 0 184,751 176,530 7,365,064 23,362,227 1,811,492 191,235 1,524,888 1,524,888 286,604 37,194 323,798 132,563 108,410 9,550 98,860 71,040 156,560 310,597 0.42 0.42
EX-27 4
UT This schedule contains summary financial information extracted from Entergy Arkansas, Inc. financial statements for the quarter ended March 31, 2000 and is qualified in its entirety by reference to such financial statements. 0000007323 ENTERGY ARKANSAS, INC. 001 ENTERGY ARKANSAS, INC. 1,000 3-MOS DEC-31-2000 MAR-31-2000 PER-BOOK 2,876,297 358,792 442,362 361,018 0 4,038,469 470 591,127 496,984 1,088,581 60,000 116,350 1,232,876 667 0 0 220 0 65,798 55,207 1,418,770 4,038,469 346,887 24,394 270,118 270,118 76,759 5,123 81,882 22,174 35,314 1,944 33,370 0 21,694 17,764 0 0
EX-27 5
UT This schedule contains summary financial information extracted from Entergy Gulf States, Inc. financial statements for the quarter ended March 31, 2000 and is qualified in its entirety by reference to such financial statements. 0000044570 ENTERGY GULF STATES, INC. 006 ENTERGY GULF STATES, INC. 1,000 3-MOS DEC-31-2000 MAR-31-2000 PER-BOOK 4,165,643 439,407 487,669 626,251 0 5,718,970 114,055 1,153,195 205,995 1,473,245 119,650 198,951 1,631,639 0 0 0 0 0 68,056 51,816 2,175,613 5,718,970 483,231 9,540 432,796 432,796 50,435 3,891 54,326 34,029 10,757 4,144 6,613 3,400 41,483 81,455 0 0
EX-27 6
UT This schedule contains summary financial information extracted from Entergy Louisiana, Inc. financial statements for the quarter ended March 31, 2000 and is qualified in its entirety by reference to such financial statements. 0000060527 ENTERGY LOUISIANA, INC. 012 ENTERGY LOUISIANA, INC. 1,000 3-MOS DEC-31-2000 MAR-31-2000 PER-BOOK 3,260,534 136,606 326,689 326,964 0 4,050,793 1,088,900 0 68,367 1,155,096 105,000 100,500 1,245,547 0 0 0 16,388 0 16,384 28,387 1,381,320 4,050,793 346,820 9,282 300,307 300,307 46,513 791 47,304 26,831 11,191 2,378 8,813 0 25,456 33,879 0 0
EX-27 7
UT This schedule contains summary financial information extracted from Entergy Mississippi, Inc. financial statements for the quarter ended March 31, 2000 and is qualified in its entirety by reference to such financial statements. 0000066901 ENTERGY MISSISSIPPI, INC. 016 ENTERGY MISSISSIPPI, INC. 1,000 3-MOS DEC-31-2000 MAR-31-2000 PER-BOOK 1,137,179 12,464 170,594 187,736 0 1,507,973 199,326 0 229,021 428,288 0 50,381 584,223 0 0 0 0 0 265 97 444,660 1,507,973 182,775 1,616 169,561 169,561 13,214 2,667 15,881 9,970 4,295 842 3,453 1,000 7,317 72,230 0 0
EX-27 8
UT This schedule contains summary financial information extracted from Entergy New Orleans, Inc. financial statements for the quarter ended March 31, 2000 and is qualified in its entirety by reference to such financial statements. 0000071508 ENTERGY NEW ORLEANS, INC. 017 ENTERGY NEW ORLEANS, INC. 1,000 3-MOS DEC-31-2000 MAR-31-2000 PER-BOOK 324,845 3,259 102,667 45,249 0 476,020 33,744 36,294 60,102 130,140 0 19,780 169,100 0 0 0 0 0 0 0 157,000 476,020 119,742 1,981 113,370 113,370 6,372 923 7,295 3,497 1,817 241 1,576 0 7,014 4,492 0 0
EX-27 9
UT This schedule contains summary financial information extracted from System Energy Resources, Inc. financial statements for the quarter ended March 31, 2000 and is qualified in its entirety by reference to such financial statements. 0000202584 SYSTEM ENERGY RESOURCES, INC. 018 SYSTEM ENERGY RESOURCES, INC. 1,000 3-MOS DEC-31-2000 MAR-31-2000 PER-BOOK 2,291,758 139,970 467,118 482,124 0 3,380,970 789,350 0 104,317 893,667 0 0 1,065,798 0 0 0 91,800 0 32,300 38,421 1,258,984 3,380,970 157,089 22,989 82,649 82,649 74,440 4,828 79,268 30,493 25,786 0 25,786 23,600 42,653 188,501 0 0
EX-99 10
Exhibit 99(a) Entergy Arkansas, Inc. Computation of Ratios of Earnings to Fixed Charges and Ratios of Earnings to Combined Fixed Charges and Preferred Dividends 1994 1995 1996 1997 1998 1999 Fixed charges, as defined: Total Interest Charges $110,814 $115,337 $106,716 $104,165 $96,685 $97,023 Interest applicable to rentals 19,140 18,158 19,121 17,529 15,511 17,289 ----------------------------------------------------------- Total fixed charges, as defined 129,954 133,495 125,837 121,694 112,196 114,312 Preferred dividends, as defined (a) 23,234 27,636 24,731 16,073 16,763 17,836 ----------------------------------------------------------- Combined fixed charges and preferred dividends, as defined $153,188 $161,131 $150,568 $137,767 $128,959 $132,148 =========================================================== Earnings as defined: Net Income $142,263 $136,666 $157,798 $127,977 $110,951 $69,313 Add: Provision for income taxes: Total 29,220 72,081 84,445 59,220 71,374 54,012 Fixed charges as above 129,954 133,495 125,837 121,694 112,196 114,312 ----------------------------------------------------------- Total earnings, as defined $301,437 $342,242 $368,080 $308,891 $294,521 $237,637 =========================================================== Ratio of earnings to fixed charges, as defined 2.32 2.56 2.93 2.54 2.63 2.08 =========================================================== Ratio of earnings to combined fixed charges and preferred dividends, as defined 1.97 2.12 2.44 2.24 2.28 1.80 =========================================================== - ------------------------ (a) "Preferred dividends," as defined by SEC regulation S-K, are computed by dividing the preferred dividend requirement by one hundred percent (100%) minus the income tax rate.
EX-99 11
Exhibit 99(b) Entergy Gulf States, Inc. Computation of Ratios of Earnings to Fixed Charges and Ratios of Earnings to Combined Fixed Charges and Preferred Dividends 1994 1995 1996 1997 1998 1999 Fixed charges, as defined: Total Interest charges $204,134 $200,224 $193,890 $180,073 $178,220 $153,034 Interest applicable to rentals 21,539 16,648 14,887 15,747 16,927 16,451 ---------------------------------------------------------- Total fixed charges, as defined 225,673 216,872 208,777 195,820 195,147 169,485 Preferred dividends, as defined (a) 52,210 44,651 48,690 30,028 32,031 29,355 ---------------------------------------------------------- Combined fixed charges and preferred dividends, as defined $277,883 $261,523 $257,467 $225,848 $227,178 $198,840 ========================================================== Earnings as defined: Income (loss) from continuing operations before extraordinary items and the cumulative effect of accounting changes ($82,755) $122,919 ($3,887) $59,976 $46,393 $125,000 Add: Income Taxes (62,086) 63,244 102,091 22,402 31,773 75,165 Fixed charges as above 225,673 216,872 208,777 195,820 195,147 169,485 ---------------------------------------------------------- Total earnings, as defined (b) $80,832 $403,035 $306,981 $278,198 $273,313 $369,650 ========================================================== Ratio of earnings to fixed charges, as defined 0.36 1.86 1.47 1.42 1.40 2.18 ========================================================== Ratio of earnings to combined fixed charges and preferred dividends, as defined 0.29 1.54 1.19 1.23 1.20 1.86 ========================================================== (a) "Preferred dividends," as defined by SEC regulation S-K, are computed by dividing the preferred dividend requirement by one hundred percent (100%) minus the income tax rate. (b) Earnings for the year ended December 31, 1994, for GSU were not adequate to cover fixed charges combined fixed charges and preferred dividends by $144.8 million and $197.1 million, respectively.
EX-99 12
Exhibit 99(c) Entergy Louisiana, Inc. Computation of Ratios of Earnings to Fixed Charges and Ratios of Earnings to Combined Fixed Charges and Preferred Dividends 1994 1995 1996 1997 1998 1999 Fixed charges, as defined: Total Interest $136,444 $136,901 $132,412 $128,900 $122,890 $117,247 Interest applicable to rentals 8,332 9,332 10,601 9,203 9,564 9,221 ---------------------------------------------------------- Total fixed charges, as defined 144,776 146,233 143,013 138,103 132,454 126,468 Preferred dividends, as defined (a) 29,171 32,847 28,234 22,103 20,925 16,006 ---------------------------------------------------------- Combined fixed charges and preferred dividends, as defined $173,947 $179,080 $171,247 $160,206 $153,379 $142,474 ========================================================== Earnings as defined: Net Income $213,839 $201,537 $190,762 $141,757 $179,487 $191,770 Add: Provision for income taxes: Total Taxes 63,288 117,114 118,559 98,965 109,104 122,368 Fixed charges as above 144,776 146,233 143,013 138,103 132,454 126,468 ---------------------------------------------------------- Total earnings, as defined $421,903 $464,884 $452,334 $378,825 $421,045 $440,606 ========================================================== Ratio of earnings to fixed charges, as defined 2.91 3.18 3.16 2.74 3.18 3.48 ========================================================== Ratio of earnings to combined fixed charges and preferred dividends, as defined 2.43 2.60 2.64 2.36 2.75 3.09 ========================================================== - ------------------------ (a) "Preferred dividends," as defined by SEC regulation S-K, are computed by dividing the preferred dividend requirement by one hundred percent (100%) minus the income tax rate.
EX-99 13
Exhibit 99(d) Entergy Mississippi, Inc. Computation of Ratios of Earnings to Fixed Charges and Ratios of Earnings to Combined Fixed Charges and Preferred Dividends 1994 1995 1996 1997 1998 1999 Fixed charges, as defined: Total Interest $52,764 $51,635 $48,007 $45,274 $40,927 $38,840 Interest applicable to rentals 1,716 2,173 2,165 1,947 1,864 2,261 ----------------------------------------------------------- Total fixed charges, as defined 54,480 53,808 50,172 47,221 42,791 41,101 Preferred dividends, as defined (a) 9,447 9,004 7,610 5,123 4,878 4,878 ----------------------------------------------------------- Combined fixed charges and preferred dividends, as defined $63,927 $62,812 $57,782 $52,344 $47,669 $45,979 =========================================================== Earnings as defined: Net Income $48,779 $68,667 $79,210 $66,661 $62,638 $41,588 Add: Provision for income taxes: Total income taxes 12,476 34,877 41,107 26,744 28,031 17,537 Fixed charges as above 54,480 53,808 50,172 47,221 42,791 41,101 ----------------------------------------------------------- Total earnings, as defined $115,735 $157,352 $170,489 $140,626 $133,460 $100,226 =========================================================== Ratio of earnings to fixed charges, as defined 2.12 2.92 3.40 2.98 3.12 2.44 =========================================================== Ratio of earnings to combined fixed charges and preferred dividends, as defined 1.81 2.51 2.95 2.69 2.80 2.18 =========================================================== - ------------------------ (a) "Preferred dividends," as defined by SEC regulation S-K, are computed by dividing the preferred dividend requirement by one hundred percent (100%) minus the income tax rate.
EX-99 14
Exhibit 99(e) Entergy New Orleans, Inc. Computation of Ratios of Earnings to Fixed Charges and Ratios of Earnings to Combined Fixed Charges and Preferred Dividends 1994 1995 1996 1997 1998 1999 Fixed charges, as defined: Total Interest $18,272 $17,802 $16,304 $15,287 $14,792 $14,680 Interest applicable to rentals 1,245 916 831 911 1,045 1,281 ---------------------------------------------------- Total fixed charges, as defined 19,517 18,718 17,135 16,198 15,837 15,961 Preferred dividends, as defined (a) 2,071 1,964 1,549 1,723 1,566 1,566 ---------------------------------------------------- Combined fixed charges and preferred dividends, as defined $21,588 $20,682 $18,684 $17,921 $17,403 $17,527 ==================================================== Earnings as defined: Net Income $13,211 $34,386 $26,776 $15,451 $16,137 $18,961 Add: Provision for income taxes: Total 4,600 20,467 16,216 12,142 10,042 13,030 Fixed charges as above 19,517 18,718 17,135 16,198 15,837 15,961 ---------------------------------------------------- Total earnings, as defined $37,328 $73,571 $60,127 $43,791 $42,016 $47,952 ==================================================== Ratio of earnings to fixed charges, as defined 1.91 3.93 3.51 2.70 2.65 3.00 ==================================================== Ratio of earnings to combined fixed charges and preferred dividends, as defined 1.73 3.56 3.22 2.44 2.41 2.74 ==================================================== - ------------------------ (a) "Preferred dividends," as defined by SEC regulation S-K, are computed by dividing the preferred dividend requirement by one hundred percent (100%) minus the income tax rate. (b) Earnings for the twelve months ended December 31, 1991 include the $90 million effect of the 1991 NOPSI Settlement.
EX-99 15
Exhibit 99(f) System Energy Resources, Inc. Computation of Ratios of Earnings to Fixed Charges and Ratios of Earnings to Fixed Charges 1994 1995 1996 1997 1998 1999 Fixed charges, as defined: Total Interest $176,504 $151,512 $143,720 $128,653 $116,060 $147,982 Interest applicable to rentals 7,546 6,475 6,223 6,065 5,189 3,871 --------------------------------------------------------- Total fixed charges, as defined $184,050 $157,987 $149,943 $134,718 $121,249 $151,853 ========================================================= Earnings as defined: Net Income $5,407 $93,039 $98,668 $102,295 $106,476 $82,375 Add: Provision for income taxes: Total 36,838 75,493 82,121 74,654 77,263 53,851 Fixed charges as above 184,050 157,987 149,943 134,718 121,249 151,853 --------------------------------------------------------- Total earnings, as defined $226,295 $326,519 $330,732 $311,667 $304,988 $288,079 ========================================================= Ratio of earnings to fixed charges, as defined 1.23 2.07 2.21 2.31 2.52 1.90 =========================================================
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