EX-99 2 a04006991.htm

For further information:
Michele Lopiccolo, VP, Investor Relations
Phone 504/576-4879, Fax 504/576-2897
mlopicc@entergy.com

INVESTOR NEWS

Exhibit 99.1

May 2, 2006

ENTERGY REPORTS FIRST QUARTER EARNINGS

NEW ORLEANS - Entergy Corporation reported first quarter 2006 earnings of $0.92 per share on an as-reported basis and $0.90 per share on an operational basis, as shown in Table 1 below. A more detailed discussion of quarterly results begins on page 2 of this release.

Table 1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures

First Quarter 2006 vs. 2005

(Per share in U.S. $)

2006

2005

Change

As-Reported Earnings

0.92

0.79

0.13

Less Special Items

0.02

(0.01)

0.03

Operational Earnings

0.90

0.80

0.10

Weather Impact

(0.06)

(0.01)

(0.05)

Operational Earnings Highlights for First Quarter 2006

  • Utility, Parent & Other achieved higher earnings while still experiencing the effects of two hurricanes that reduced retail sales and pushed interest expense higher as borrowings increased to fund storm costs.
  • Entergy Nuclear earnings increased as a result of higher generation due to fewer outage days and uprates, as well as higher energy pricing.
  • Entergy's Non-Nuclear Wholesale Assets business had lower results due to the absence of any sales of SO2 allowances in the current period.

"Entergy continues to work to rebound from the devastation of last year's storms," said J. Wayne Leonard, Entergy's chief executive officer. "Constructive progress is evident across a range of operational and regulatory efforts, with more work to be done as we stay focused on delivering high quality service to our customers and strengthening our financial position and results of operations."

Table of Contents Page
     
I. Consolidated Results 2
II. Utility, Parent & Other Results 3
III. Competitive Businesses Results
  Entergy Nuclear
  Non-Nuclear Wholesale Assets
4
5
6
IV. Earnings Guidance 6
V. Forward-Looking Financial Data and Aspirations 8
 
VI. Appendices
A.  Entergy New Orleans, Inc. Bankruptcy
B.  Variance Analysis and Special Items
C.  Regulatory Summary
D.  Financial Performance Measures and
      Historical Performance Measures
E.  Planned Capital Expenditures
F.  Debt Maturities
G.  Definitions
H.  GAAP to Non-GAAP Reconciliations

10
11
13
15

16
17
17
19
VII. Financial Statements 22

Other Highlights:

  • Two of Entergy's operating utilities received approval for interim storm cost recovery while provisions of recently enacted Gulf Opportunity Zone tax legislation resulted in a significant cash tax refund in connection with accelerated deductions for storm expenses.
  • Entergy received FERC approval for its Independent Coordinator of Transmission proposal.
  • Entergy Nuclear received approval for a 20 percent uprate at Vermont Yankee and advanced in the process of increasing generation output at the plant.

Entergy will host a teleconference to discuss this release at 10:00 a.m. CDT on Tuesday, May 2, 2006, with access by telephone, 719-457-2621, confirmation code 6287406. The call and presentation slides can also be accessed via Entergy's web site at www.entergy.com. A replay of the teleconference will be available for the following seven days by dialing 719-457-0820, confirmation code 6287406. The replay will also be available on Entergy's web site at www.entergy.com.

I. Consolidated Results

Consolidated Earnings

Table 2 provides a comparative summary of consolidated earnings per share for first quarter 2006 versus 2005, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. Utility, Parent & Other achieved higher earnings while still experiencing the effects of two hurricanes while Entergy Nuclear earnings increased as a result of higher generation due to fewer outage days and uprates, as well as higher energy pricing. Also, Entergy's non-nuclear wholesale assets business had modestly lower results due to the absence of any sales of SO2 allowances in the current period.

Table 2: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2006 vs. 2005 (see appendix G for definitions of certain measures)

(Per share in U.S. $)

 

First Quarter

 

2006

2005

Change

As-Reported

Utility, Parent & Other

0.54

0.42

0.12

Entergy Nuclear

0.39

0.36

0.03

Non-nuclear wholesale assets

(0.01)

0.01

(0.02)

   Consolidated As-Reported Earnings

0.92

0.79

0.13

Less Special Items

Utility, Parent & Other

0.02

(0.01)

0.03

Entergy Nuclear

-

-

-

Non-nuclear wholesale assets

-

-

-

   Consolidated Special Items

0.02

(0.01)

0.03

Operational

Utility, Parent & Other

0.52

0.43

0.09

Entergy Nuclear

0.39

0.36

0.03

Non-nuclear wholesale assets

(0.01)

0.01

(0.02)

   Consolidated Operational Earnings

0.90

0.80

0.10

Weather Impact

(0.06)

(0.01)

(0.05)

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

Consolidated Net Cash Flow Provided by Operating Activities

Entergy's net cash flow provided by operating activities in first quarter 2006 was $1.0 billion compared to $0.5 billion in first quarter 2005. The increase was due primarily to:

  • Receipt in first quarter 2006 of a tax refund of $344 million in connection with Gulf Opportunity Zone tax legislation passed in December 2005.
  • Increased collections of $130 million on deferred fuel balances at Utility, Parent & Other.
  • Higher revenue of approximately $30 million due to higher prices and incremental generation at Entergy Nuclear.

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

Table 3: Consolidated Net Cash Flow Provided by Operating Activities

First Quarter 2006 vs. 2005

(U.S. $ in millions)

First Quarter

2006

2005

Change

Utility, Parent & Other

821

371

450

Entergy Nuclear

213

131

82

Non-nuclear wholesale assets

(21)

(5)

(16)

    Total Net Cash Flow Provided by Operating Activities

1,013

497

516

II. Utility, Parent & Other Results

In first quarter 2006, Utility, Parent & Other had earnings of $0.54 per share on an as-reported basis and $0.52 per share on an operational basis compared to $0.42 per share on an as-reported basis and $0.43 per share in operational earnings in first quarter 2005. As-reported 2006 earnings reflect $0.02 per share in special items while there was $(0.01) per share in special items in 2005. Special items in first quarter 2006 include earnings at Entergy New Orleans, Inc. (ENOI) of $0.03 per share. Both first quarter 2006 and 2005 special items include the operating loss from the competitive retail business in Texas, which was $(0.01) per share in each period. Entergy sold its customer base in the retail business in April 2006.

ENOI results for first quarter 2006 are being treated as a special item. As such, its results are included in Utility, Parent & Other as-reported earnings but are excluded from operational earnings. For first quarter 2005 Utility, Parent & Other results include ENOI on both on an as-reported and operational bases. Also, ENOI is de-consolidated for both first quarter 2006 and first quarter 2005 reporting purposes as explained in Appendix A of this release. Accordingly, revenue and expense explanations that follow exclude the revenues and expenses of ENOI.

Earnings for Utility, Parent & Other in first quarter 2006, exclusive of ENOI, reflect:

  • Constructive rate actions over the past year including the addition of two highly efficient gas-fired units in retail rates as well as improved margins on wholesale sales contracts.
  • Accretion from Entergy's share repurchase program.

Partially offsetting the above factors were higher operation and maintenance expense, higher interest expense realized in connection with borrowings to pay for storm restoration costs for Hurricanes Katrina and Rita, and milder-than-normal weather. The higher operation and maintenance expense resulted from increased storm reserves and costs associated with Perryville and Attala which were expected and are being recovered in rates. Also contributing to the increase in operation and maintenance expense was higher nuclear expense associated with an unplanned outage.

ENOI results for first quarter 2006 reflect earnings of $0.03 per share. In first quarter 2005, ENOI also earned $0.03 per share. First quarter 2005 results reflect a normal operating environment for ENOI where results were primarily driven by margin on sales to retail customers. However, as a result of Hurricane Katrina, and the subsequent filing by ENOI for reorganization under Chapter 11 of the U.S. Bankruptcy Code, first quarter 2006 results reflect the ongoing impact of the hurricane as well as certain actions taken by ENOI specific to its continuing effort to recover financially from this storm. Results for the current period include significantly lower revenues from customers due to extended outages and customer losses partially offset by lower operation and maintenance expense due to the continued focus on storm restoration rather than routine operating activities, and ongoing cost reduction initiatives. In addition, net wholesale revenue is materially higher due to an increase in energy available for sales for resale due to the lower retail usage caused by Hurricane Katrina. Finally, current results reflect lower interest expense due to the cessation of interest accruals on first mortgage bonds as a result of an agreement among bondholders and ENOI in the Chapter 11 bankruptcy proceeding.

 

Electricity usage excluding ENOI, in gigawatt-hour sales by customer segment, is included in Table 4. Current quarter sales reflect the following:

  • Residential sales in first quarter 2006, on a weather-adjusted basis, were up 2 percent compared to first quarter 2005.
  • Commercial and governmental sales, on a weather-adjusted basis, were up 2 percent.
  • Industrial sales experienced a decrease of 4 percent in first quarter 2006 compared to the same period a year ago.

The decline in the industrial sector in first quarter reflects the storm-related impact that was concentrated in the chemical and refining industries which currently make up more than 50 percent of Entergy's industrial sales. Two large industrial customers remain out of service, with one expected to return shortly and the second by the end of second quarter 2006. High gas prices have placed some strain on the chemical and paper sectors, but large scale disruptions have not been experienced to date.

 

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

Table 4: Utility Operational Performance Measures excluding Entergy New Orleans

First Quarter 2006 vs. 2005 (see appendix G for definitions of measures)

 

First Quarter

 

2006

2005

% Change

% Weather Adjusted

GWh billed

   Residential

6,963

7,170

-2.9%

2.3%

   Commercial and governmental

5,916

5,854

1.1%

2.0%

   Industrial

9,053

9,452

-4.2%

-4.2%

   Total Retail Sales

21,932

22,476

-2.4%

-0.5%

   Wholesale

1,555

1,728

-10.0%

   Total Sales

23,487

24,204

-3.0%

O&M expense

$16.12

$14.98

7.6%

Number of retail customers (a)

   Residential

2,120,033

2,126,685

   Commercial & governmental

312,894

315,066

   Industrial

39,015

38,484

(a) Customer count data reflects estimates of customers in the hardest hit areas affected by Hurricane Katrina.  Issues associated with temporary housing and resumption of service at permanent dwellings render precise counts difficult at this time.

Appendix C provides information on selected pending local and federal regulatory cases.

III. Competitive Businesses Results

Entergy's competitive businesses include Entergy Nuclear and Non-Nuclear Wholesale Assets. Table 5 provides a summary of Competitive Businesses' capacity and generation sold forward as of the end of the first quarter 2006.

Entergy Nuclear has sold 91%, 81%, and 59% of planned generation at average prices per megawatt-hour of $41, $45 and $50, for the remainder of 2006, 2007 and 2008, respectively. Non-Nuclear Wholesale Assets has contracted for 21%, 21% and 23% of its planned energy and capacity revenues at average prices per megawatt-hour of $25, $28 and $28, for the same periods.

Table 5: Competitive Businesses Capacity and Generation Sold Forward

Remainder of 2006 through 2010 (see appendix G for definitions of measures)

 

Remainder of 2006

2007

2008

2009

2010

Entergy Nuclear (EN)

Energy

Planned TWh of generation

26

34

34

35

34

Percent of EN's planned generation sold forward (b)

   Unit-contingent

34%

32%

27%

21%

12%

   Unit-contingent with availability guarantees

53%

47%

32%

13%

5%

   Firm liquidated damages (LD)

4%

2%

0%

0%

0%

   Total

91%

81%

59%

34%

17%

Average contract price per MWh (c)

$41

$45

$50

$56

$46

Capacity

Planned net MW in operation

4,200

4,200

4,200

4,200

4,200

Percent of EN's capacity sold forward

   Bundled capacity and energy contracts

12%

12%

12%

12%

12%

   Capacity contracts

77%

48%

36%

24%

3%

   Total

89%

60%

48%

36%

15%

Average capacity contract price per kW per month

$1.1

$1.1

$1.1

$1.0

$0.9

Blended Capacity and Energy Recap (based on revenues)

Percent of EN's planned energy and capacity sold forward

85%

72%

50%

29%

12%

Average contract revenue per MWh (c)

$42

$46

$51

$57

$46

Non-nuclear Wholesale Assets

Capacity

Net MW in operation

1,578

1,578

1,578

1,578

1,578

Percent of ECS's capacity sold forward

30%

29%

29%

19%

17%

Energy

Planned TWh of generation

3

4

4

4

4

Percent of ECS's planned generation sold forward

   Unit-contingent

5%

6%

6%

6%

6%

   Unit-contingent with availability guarantees

35%

32%

34%

27%

29%

   Firm liquidated damages (LD)

0%

0%

0%

0%

0%

   Total

40%

38%

40%

33%

35%

Blended Capacity and Energy Recap (based on revenues)

Percent of ECS's planned energy and capacity sold forward

21%

21%

23%

15%

16%

Average contract revenue per MWh

$25

$28

$28

$21

$20

 

  1. A portion of EN's total planned generation sold forward for the years 2006-2010 is associated with the Vermont Yankee contract for which pricing may be adjusted. The average contract price in 2010 substantially reflects the sold forward position at Vermont Yankee and not necessarily the current market for the unsold output.
  2. Average contract prices exclude potential payments that may be owed under the value sharing agreement with the New York Power Authority.

Entergy Nuclear

Entergy Nuclear (EN) earned $0.39 per share on both as-reported and operational bases in first quarter 2006, compared to $0.36 in first quarter 2005. In first quarter 2006 EN had higher generation resulting from the combination of uprates and no planned refueling outage days compared to twenty days in first quarter 2005. In addition, higher pricing contributed to the improved results at EN. Partially offsetting the contributions of higher generation and improved pricing was higher operation and maintenance expense due to the absence of refueling outages in the current period. Operation and maintenance expense decreases during outages as resources working the outage are deferred and subsequently amortized into expense over the next 18-24 months.

Table 6 provides a comparative summary of EN's operational performance measures.

Table 6: Entergy Nuclear Operational Performance Measures

First Quarter 2006 vs. 2005 (see appendix G for definitions of measures)

 

First Quarter

 

2006

2005

% Change

Net MW in operation (d)

4,135

4,058

2%

Average realized price per MWh

$44.39

$41.56

7%

Production cost per MWh

$19.08

$18.71

2%

Non-fuel O&M expense per MWh

$19.74

$20.03

(1)%

Generation in GWh

8,742

8,267

6%

Capacity factor

97%

93%

4%

Refueling outage days:

   Indian Point 3 (e)

-

20

(d) Vermont Yankee's 95 MW uprate was approved in early March 2006. Net MW in operation reflects power ascension as of end of first quarter 2006.

(e) Table reflects the duration of refueling outages that occurred in first quarter 2005. For the Indian Point 3 plant, approximately 6 refueling outage days occurred in second quarter 2005.

Non-Nuclear Wholesale Assets

Entergy's Non-Nuclear Wholesale Assets business realized a loss of $(0.01) per share on both an as-reported and operational bases in first quarter 2006. As-reported and operational results in first quarter 2005 were $0.01 per share and included the sale of SO2 allowances while there were no such sales in the current period.

IV. Earnings Guidance

Entergy is reaffirming as-reported earnings guidance for 2006 in the range of $4.78 to $5.08 per share and operational earnings guidance of $4.50 to $4.80 per share. Earnings guidance ranges exclude ENOI given the uncertainty that remains for this business as it works toward filing a plan of reorganization. During 2006, actual results for ENOI are being separately identified as a special item for earnings release purposes.

Entergy's 2006 guidance was established based on a number of assumptions that are detailed below. Among them were 1) normal weather for the Utility, and 2) an average spot electricity price of $83/MWh for the unsold portion of Entergy Nuclear's 2006 generation. During the first quarter, weather was milder than normal, resulting in lower electricity usage by customers across the Entergy system. Similarly, in part due to milder weather, spot electricity prices averaged $63/MWh during the quarter. Published market prices for the remainder of 2006 now average $70/MWh. While both of these examples, if viewed individually would reduce earnings guidance, Entergy continues to believe its current guidance range is appropriate given the number of months remaining in the year, the potential for other variables to materialize more favorably than projected in guidance, and the volatility in power prices.

Guidance ranges for 2006 are detailed in Table 7 and are based on the following key assumptions which are unchanged from those identified when guidance was initially issued:

Utility, Parent & Other

  • Normal weather
  • Sales growth of approximately 4%, weighted in the months September - December 2006 due to absence of 2005 hurricane effect
  • Non-storm related rate actions, including carryover effects of 2005 rate actions and 2006 rate action for Attala
  • Increased non-fuel operation and maintenance expense, including effects of inflation, benefits costs, supply plan, and Independent Coordinator of Transmission implementation along with the absence of 2005 offsets relating to storm restoration work
  • Increased interest expense from higher financing requirements

Entergy Nuclear

  • 35 TWh of total output, reflecting an approximate 94% capacity factor, including 30 day refueling outages at Indian Point 2 (spring 2006) and FitzPatrick (fall 2006) and implementation of 95 MW uprate at Vermont Yankee at end of first quarter 2006
  • 91% energy sold under existing contracts; 9% sold into the spot market
  • $41/MWh average energy contract price, average price of $83/MWh for unsold energy based on published market prices in January 2006
  • $20.50/MWh non-fuel operation and maintenance expense reflecting inflation and higher benefits expense; $19/MWh production cost
  • Increased interest expense due to increased collateral requirements driven by higher market prices
  • Increased depreciation and other expenses

Non-Nuclear Wholesale Assets

  • Reduced sales of emissions allowances
  • Increased year over year losses

Special Items

  • Receipt of additional proceeds from the 2004 sale of EKLP and recognition of gain contingency
  • Absence of 2005 results from discontinued competitive retail operation (a 2006 estimate is not presented as ultimate amount depends on timing of sale)

Share Repurchase Program

  • The share repurchase program remains suspended following the hurricanes through the end of 2006, resulting in end of year fully diluted shares outstanding of approximately 213 million

The above assumptions assume no regulatory disallowances are ordered by retail regulators for $1.5 billion storm restoration costs ($0.8 billion capital, $0.7 billion regulatory assets). Any such disallowances would be shown as special items.

Earnings guidance details are provided in Table 7. This table demonstrates why 2006 results are expected to differ from 2005 based on the quantification of assumptions described above. For presentation simplicity purposes, year-over-year changes are shown as point estimates and are applied to 2005 actuals to compute the 2006 guidance midpoint. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the calculated guidance midpoints to produce Entergy's guidance ranges for as-reported and operational earnings excluding Entergy New Orleans.

Table 7: 2006 Earnings Per Share Guidance excluding Entergy New Orleans

(Per share in U.S. $)



Segment



Description of Drivers

2005 Earnings per Share

Expected Change

2006
Guidance
Midpoint

2006 Guidance Range

Utility, Parent & Other

2005 Operational Earnings per Share

3.03

Adjustment to normalize weather

(0.10)

Increased revenue due to non-storm rate actions and sales growth

0.50

Increased O&M expense

(0.25)

Increased interest expense

(0.10)

Other

(0.03)

Subtotal

3.03

0.02

3.05

Entergy Nuclear

2005 Operational Earnings per Share

1.32

Higher contract and market energy pricing

0.42

Increased generation from uprates and fewer outages

0.10

Increased O&M expense

(0.10)

Increased interest expense

(0.05)

Increased depreciation and other

(0.09)

Subtotal

1.32

0.28

1.60

Non-Nuclear Wholesale Assets

2005 Operational Earnings per Share

0.05

Reduced sales of emissions allowances

(0.04)

Increased losses from non-nuclear wholesale assets

(0.01)

Subtotal

0.05

(0.05)

0.00

Consolidated Operational

2006 Operational Earnings per Share

4.40

0.25

4.65

4.50 - 4.80

Consolidated As-Reported

2005 As Reported Earnings per Share

4.19

Changes detailed above

0.25

Special items:

  2006 Gain on sale of Entergy-Koch, LP

0.28

  2005 results from discontinued competitive
   retail operation, including impairment loss

0.21

2006 As-Reported Earnings per Share

4.19

0.74

4.93

4.78 - 5.08

Earnings guidance should be considered in association with earnings sensitivities as shown in Table 8. These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers. Utility sales levels is expected to be the most significant driver of results in 2006 for Utility, Parent & Other due to normal growth in customer usage and the recovery of some portion of load impacted by hurricanes. At Entergy Nuclear, energy prices are expected to be the most significant driver of results in 2006, given the size of EN's unsold position. In 2005, Entergy modified its contracting strategy to provide the flexibility to retain a larger unsold position. This modification provides EN the opportunity to capture higher spot market prices. Increased volatility of expected results was considered as well. Estimated annual impacts shown in the Table 8 are intended to be indicative rather than precise guidance.

Table 8: Earnings Sensitivities excluding Entergy New Orleans

(Per share in U.S. $)


Variable

2006 Guidance Assumption


Description of Change

Estimated Annual Impact (f)

Utility, Parent & Other

Sales growth
    Residential
    Commercial/Governmental
    Industrial
    Total


Approximately 4% total sales growth weighted in Sept.-Dec. 2006


1% change in Residential MWh sold
1% change in Comm/Govt MWh sold
1% change in Industrial MWh sold
1% change in Total MWh sold


- / + 0.04
- / + 0.03
- / + 0.03
- / + 0.10

Extended outages for Entergy Louisiana customers

31,000 customers of Entergy Louisiana

10,000 return to service

n/a / + 0.03

Rate base

Stable rate base

$100 million change in rate base

- / + 0.02

Return on equity

See Appendix C

1% change in allowed ROE

- / + 0.28

Interest expense

Additional $550M average debt at 6% average interest rate

$100M change in debt

- / + 0.02

Entergy Nuclear

Capacity factor

94% capacity factor

1% change in capacity factor

- / + 0.04

Energy price

9% energy unsold at $83/MWh in 2006

$10/MWh change for unsold energy

- / + 0.09

Non-fuel operation and maintenance expense

$20.50/MWh non-fuel operation and maintenance expense

$1 change per MWh

- / + 0.10

Outage (lost revenue only)

94% capacity factor, including refueling outages at Indian Point 2 and FitzPatrick

1,000 MW plant for 10 days at average portfolio energy price of $41/MWh for sold and $83/MWh for unsold volumes in 2006

- 0.03 / n/a

       

  1. Based on 2005 average fully diluted shares of approximately 214 million.

V. Forward-looking Financial Data and Aspirations

Entergy continues to focus on recovery and stability in the aftermath of hurricanes that severely affected its business operations in August and September of 2005. While these storms created issues that may affect near-term financial performance, the company's long-term aspirations remain in tact. Specifically, Entergy aspires to deliver average annual earnings per share growth of 5-6%, to achieve a 9% return on invested capital, and to continue to improve the company's overall credit quality over the long-term. The company's ability to achieve these aspirations over time will be based upon a combination of factors. These include, but are not limited to, intrinsic growth, the recovery of storm-related restoration costs, the return of customers and load to portions of the Entergy service territory that have been severely damaged and further impacted by new flood maps and more stringent building codes, and the amount of cash that is available for capital deployment in investments, share repurchases, dividends or debt retirement.

Table 9 provides details on Entergy's projected cash available for capital redeployment for the period 2006 through 2008 excluding Entergy New Orleans. Entergy expects to have $2.3 billion of cash available over this period for several potential uses: investments in new businesses or assets, repayment of debt or equity, or dividend increases. Net cash flow provided by operating activities shown in the table includes the recovery of fuel costs deferred in periods prior to 2006, and revenue enhancement realized at Entergy Nuclear by capturing opportunities through favorable market pricing. Cash flows from other storm recovery initiatives, such as insurance, regulatory rate relief, or funding through community development block grants, are not included because they are too preliminary or uncertain at this time. Sources of cash also include debt that Entergy believes it could issue in association with new investments while maintaining a net debt ratio of 50% or less. The amount of additional debt could vary depending upon the type of new investment and the credit market environment. Uses of cash shown on the table reflect current estimates of storm restoration spending and share repurchases based on resumption of the $1.5 billion share repurchase program approved in 2004. The amount of repurchases may vary as a result of material changes in business results or capital spending or material new investment opportunities.

Table 9: Projected Cash Available for Capital Redeployment excluding Entergy New Orleans
2006 through 2008 - Reconciliation of GAAP to Non-GAAP Measures
(see appendix G for definitions of measures)

($ in billions)

2006-2008

Net cash flow provided by operating activities

7.3

Less:

   Net nuclear fuel purchases

(0.4)

   Net change in decommissioning trust funds

(0.4)

   Planned capital expenditures

(3.6)

   Preferred dividends

(0.1)

Free cash flow

2.8

Common dividends

(1.5)

Net share repurchases (includes repurchases under existing program net of equity units conversion and remaining sale proceeds)

0.2

Additional debt capacity (net of maturities)

0.8

Net Cash Available for New Investment, Debt or Equity Repayment, Dividend Increase

2.3

Appendix E provides details on planned capital expenditures by business, and appendix F includes a summarized schedule of debt maturities.

 

VI. Appendices

Eight appendices are presented in this section as follows:

  • Appendix A includes information on Entergy New Orleans, Inc.'s filing for protection under Chapter 11 of the U.S. Bankruptcy Code.
  • Appendix B includes earnings per share variance analyses and details on special items that relate to the current quarter.
  • Appendix C provides information on selected pending local and federal regulatory cases.
  • Appendix D provides financial metrics for both current and historical periods. In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
  • Appendix E provides a summary of planned capital expenditures for the next three years.
  • Appendix F provides a summary schedule of Entergy Corporation's debt maturities by business.
  • Appendix G provides definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
  • Appendix H provides a reconciliation of GAAP to non-GAAP financial measures used in this release.

 

Appendix A provides information on the petition filed by Entergy New Orleans, Inc. for protection under Chapter 11 of the U.S. Bankruptcy Code as well as related activities subsequent to the initial filing.

Appendix A: Entergy New Orleans, Inc. Bankruptcy

Bankruptcy Filing

To protect its franchise agreement with the City and ensure continued progress in restoring power and gas service to New Orleans after Hurricane Katrina, on September 23, 2005, Entergy New Orleans, Inc. (ENOI) filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Important decisions were rendered by the bankruptcy court in December 2005 when the court authorized the debtor-in-possession (DIP) financing (described below), approved the priming lien for DIP financing, and ordered that use of insurance proceeds would be determined by ENOI. Numerous motions have been filed with additional motions expected as the bankruptcy proceeding continues. The exclusivity period for filing a final plan of reorganization by ENOI was extended for a second time by the Bankruptcy court and is currently August 21, 2006, with solicitation of acceptances of the plan to be completed by October 18, 2006. ENOI must appear at status conferences on June 26, 2006 and July 26, 2006 to provide progress reports to the Bankruptcy court on the restructuring plan. For more information on documents filed in this proceeding go to www.entergy.com/investor_relations/enoi.aspx.

Debtor-in-Possession Financing

On September 26, 2005, ENOI, as borrower, and Entergy Corporation, as lender, entered into the DIP credit agreement, a debtor-in-possession credit facility to provide funding to ENOI during its business restoration efforts. On December 9, 2005, the bankruptcy court issued its final order approving the DIP Credit Agreement. The indenture trustee of ENOI's first mortgage bonds appealed the final order. Subsequent to the indenture trustee filing its notice of appeal, ENOI, Entergy Corporation, and the indenture trustee filed with the bankruptcy court a motion to approve a settlement among the parties. On March 29, 2006, the bankruptcy court approved the settlement, and the indenture trustee dismissed its appeal. The facility enables ENOI to request funding from Entergy Corporation, but the decision to lend money is at the sole discretion of Entergy Corporation.

Accounting

Entergy owns 100 percent of the common stock of ENOI and has, subject to the rules and requirements of Chapter 11 of the U.S. Bankruptcy Code, continued to supply operating management to ENOI. However, uncertainties surrounding the nature, timing and specifics of the bankruptcy proceedings caused Entergy to de-consolidate ENOI for financial reporting purposes beginning in third quarter 2005 with ENOI's financial results being recorded under the equity method of accounting. Under this methodology, earnings from ENOI are now reflected in Entergy's income statement as equity in the earnings of unconsolidated affiliates.  Because Entergy owns all of the common stock of ENOI, this change has not impacted the amount of net income Entergy has recorded in the current period or any historical period but has resulted in ENOI's net income being presented in one line item rather than included in each individual income statement line item presented. Various line items of Entergy's consolidated balance sheet and cash flow statement have been revised to reflect the impact of de-consolidating ENOI. In addition, the deconsolidation of ENOI's results is retroactive to January 1, 2005 and Entergy's comparative results now reflect ENOI results under the equity method of accounting.

 

Appendix B-1 provides details of first quarter 2006 vs. 2005 earnings variance analyses for "Utility, Parent & Other," "Competitive Businesses," and "Consolidated."

Appendix B-1: As-Reported Earnings Per Share Variance Analysis

First Quarter 2006 vs. 2005

(Per share in U.S. $, sorted in consolidated

column, most to least favorable)

Utility,

Competitive

Parent & Other

Businesses

Consolidated

2005 earnings

0.42

0.37

0.79

Net revenue

0.19

(g)

0.13

(h)

0.32

Interest and dividend income

0.04

-

0.04

Depreciation/amortization expense

0.03

-

0.03

Share repurchase effect

0.02

0.01

0.03

Nuclear refueling outage expense

(0.01)

-

(0.01)

Preferred dividend requirements

(0.01)

-

(0.01)

Taxes other than income taxes

(0.02)

(0.01)

(0.03)

Interest expense and other charges

(0.06)

(i)

0.01

(0.05)

Income taxes - other

(0.06)

(j)

0.01

(0.05)

Other income (deductions)

0.02

(0.09)

(k)

(0.07)

Other operation & maintenance expense

(0.02)

(0.05)

(l)

(0.07)

2006 earnings

0.54

0.38

0.92

Utility Net Revenue Variance Analysis 2006 vs. 2005 ($ EPS)

First Quarter

Weather

(0.05)

Sales growth/pricing

0.09

Other

0.15

Total

0.19

  1. Net revenue increased due to higher margins on wholesale sales contracts and constructive rate actions during 2005. In addition, net revenue also increased from an adjustment of fuel clause recoveries at Entergy Gulf States-LA partially offset by the energy cost recovery true-up at Entergy Arkansas in first quarter 2005. The overall increase in net revenue was partially offset by milder-than-normal weather during the current period.
  2. Net revenue increased due to higher revenues at Entergy Nuclear as a result of higher pricing and higher generation output due to fewer outage days and power uprates.
  3. Interest expense and other charges increased due primarily to higher borrowings under credit lines and long-term debt primarily in connection with financing of significant storm restoration costs resulting from Hurricanes Katrina and Rita.
  4. Income taxes-other increased due primarily to variances in tax reserves based on existing tax liabilities.
  5. Other income (deductions) decreased in the year-to-date period due to the absence of an adjustment in the decommissioning liability made in first quarter 2005 at Entergy Nuclear.
  6. Other operation and maintenance expense increased due primarily to no refueling outage days at Entergy Nuclear in the current period. Operating and maintenance expense during refueling outages is deferred and amortized over the subsequent 18-24 months. In addition, the Non-Nuclear Wholesale Assets business experienced higher operating costs as well during the current period due to the return to service of its Harrison County plant.

 

Appendix B-2 lists special items by business with quarter-to-quarter and year-to-date comparisons. Amounts are shown on both earnings per share and net income bases. Special items are those events that are less routine, are related to prior periods, or are related to discontinued businesses. Special items are included in as-reported earnings per share consistent with generally accepted accounting principles (GAAP), but are excluded from operational earnings per share. As a result, operational earnings per share is considered a non-GAAP measure.

Appendix B-2: Special Items (shown as positive / (negative) impact on earnings)

First Quarter and 2006 vs. 2005

(Per share in U.S. $)

 

First Quarter

 

2006

2005

Change

Utility, Parent & Other

  ENOI results (m)

0.03

-

0.03

  Retail business discontinued operations

(0.01)

(0.01)

-

     Total Utility, Parent & Other

0.02

(0.01)

0.03

Competitive Businesses

  Entergy Nuclear

-

-

-

  Non-nuclear wholesale assets

-

-

-

Total Competitive Businesses

-

-

-

Total Special Items

0.02

(0.01)

0.03

(U.S. $ in millions)

 

First Quarter

2006

2005

Change

Utility, Parent & Other

  ENOI results

5.6

-

5.6

  Retail business discontinued operations

(2.2)

(1.4)

(0.8)

     Total Utility, Parent & Other

3.4

(1.4)

4.8

Competitive Businesses

  Entergy Nuclear

-

-

-

  Non-nuclear wholesale assets

-

-

-

Total Competitive Businesses

-

-

-

Total Special Items

3.4

(1.4)

4.8

       

(m) ENOI results for first quarter 2005 are included in operational earnings.

Appendix C provides a summary of selected regulatory cases and events that are pending.

Appendix C: Regulatory Summary Table

Company/ Proceeding

Authorized ROE

Pending Cases/Events

Retail Regulation

Entergy Arkansas

11.00%

Recent activity: On March 31, 2006, the APSC suspended the annual revised Energy Cost Recovery Rider (ECR) rate increase scheduled to take effect the first billing cycle in April pending further investigation. On April 7, 2006 the APSC issued a show cause order on prospective elimination of ECR and requiring a current cost-of-service study by June 8, 2006. EAI has filed for rehearing of the APSC orders, asking that the ECR rider filed in March 2006 be implemented subject to refund, and that the APSC rescind its show cause order. The APSC Staff has filed testimony supporting EAI's request that the ECR rate be implemented subject to refund. A procedural schedule in the ECR proceedings has not been set.
Background: EAI's base rates and the ECR have been in effect since 1998.  EAI has been evaluating timing for a potential base rate case and expects to make a filing in third quarter 2006. In December 2005, EAI provided notice of its intent to terminate participation in the Entergy System Agreement, following a final order from FERC establishing terms under which EAI may be required to make payments to other operating companies to achieve rough production cost equalization.
Storm Cost Recovery: EAI has not yet filed for storm cost recovery. The company's estimated storm costs are significantly less than the other Entergy subsidiaries. The base rate proceeding will include an adjustment to storm reserves to reflect recent storm restoration costs.

     

Entergy Gulf States - TX

10.95%

Recent activity: On April 11, 2006, a unanimous settlement was filed allowing recovery of $14.5 million per year in transition to competition costs over a 15-year period. Interim rates at this level were implemented on March 1, 2006, subject to refund. The Public Utility Commission of Texas (PUCT) is expected to consider the formal settlement in May 2006.
Background: EGS-TX has operated under a base rate freeze since 1999. In July 2004, the PUCT effectively rejected the company's proposal to advance to Retail Open Access and as a result, the company filed a rate case which was dismissed by the PUCT. Legislation was subsequently enacted in June 2005 which allows EGS-TX to file for rate relief through riders for incremental capacity costs and transition costs. In December 2005, the PUCT approved the recovery of $18 million annually beginning in December 2005 for capacity costs, subject to reconciliation from September 2005. The legislation also extended to mid 2008 the base rate freeze EGS-TX has been in since 1999. The company believes storm damage can be considered as a special one-off rate rider.
Storm Cost Recovery: In response to procedural recommendations of the PUCT staff, EGS-TX filed updated storm cost estimates in January and March 2006. Additional updates are to be provided on May 15, with a final accounting filing expected on June 1, 2006. A securitization bill is expected to be introduced at the Texas special legislative session that began April 17, 2006. The Governor has indicated that school finance issues must be resolved first before other issues will be considered.

     

Entergy Gulf States - LA

9.90% - 11.40%

Recent activity: In January 2006, the Louisiana Public Service Commission (LPSC) Staff recommended a $0.5 million refund for the two-year period 2004 and 2005 to be applied to future capacity deferrals and a $36.8 million rate increase effective October 2005. These recommendations were in response to the company's 2005 formula rate plan (FRP) filing which indicated that a $37.2 million rate increase was required to recover (1) a $21.1 million FRP increase and (2) $16.1 million in Perryville costs. On March 29, 2006, the LPSC approved the uncontested stipulation of the Staff and the company.
Background: In March 2005, the LPSC approved a Global Settlement which included among other things, the establishment of a FRP with a 10.65% ROE midpoint and a +/- 75 basis point bandwidth and a recovery mechanism for Commission approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. The next filing will be made in May 2006 based on a 2005 test year.
Storm Cost Recovery: In December 2005, EGS-LA filed for interim recovery of $141 million storm costs. In February 2006, the LPSC ordered interim recovery of up to $6 million of storm costs through the fuel adjustment clause during the period March to September 2006. In September until final storm recovery is issued, interim recovery of $0.85 million per month will be included in the FRP, offset by any earnings above the top of the FRP band from the 2005 test year and any ensuing period in which interim relief is being collected. The Phase II filling is expected in the second or third quarter 2006. A securitization bill has been sponsored in the current legislative session and has been approved by the House Commerce Committee and the House of Representatives. The regular session ends no later than June 19.

     

Entergy Louisiana

9.45% - 11.05%

Recent activity: None.
Background: In May 2005, the LPSC approved a modified settlement in response to ELL's January 2004 request for a base rate increase. The settlement included, among other things, a rate reduction of $6.7 million which was subsequently reduced to $0.8 million, and an FRP with a 10.25% ROE midpoint and a +/- 80 basis point bandwidth and a recovery mechanism for Commission approved capacity additions. Earnings outside the bandwidth are allocated 60% to customers and 40% to the company. The first filing will be made in May 2006 based on a 2005 test year.
Storm Cost Recovery: In December 2005, ELL filed for interim recovery of $355 million storm costs. In February 2006, the LPSC ordered interim recovery of up to $14 million of storm costs through the fuel adjustment clause during the period of March to September 2006. In September until final storm recovery is issued, interim recovery of $2 million per month will be included in the FRP, offset by any earnings above the top FRP band from the 2005 test year and any ensuing period in which interim relief is being collected. The Phase II filing is expected in the second or third quarter 2006. A securitization bill has been sponsored in the current legislative session and has been approved by the House Commerce Committee and the House of Representatives. The regular session ends no later than June 19.

 

Appendix C: Regulatory Summary Table (continued)

Company/ Proceeding

Authorized ROE

Pending Cases/Events

Retail Regulation

Entergy Mississippi

9.74% - 12.44%

Recent activity: On April 10, 2006, EMI submitted its 2005 Evaluation Report that reflected a Performance Adjusted Benchmark Return on Equity of 11.09%, including 0.53% for performance incentives. The Earned Return on Equity was 9.35%, resulting in a revenue deficiency of approximately $6.0 million and a rate increase request of approximately $3.0 million. The report is currently being reviewed by the Mississippi Public Utilities Staff (MPUS).
Background: EMI has been operating under a formula rate plan last approved in December 2002. The FRP allows the company's earned ROE to increase or decrease within a bandwidth with no change in rates; earnings outside the bandwidth are allocated 50% to customers and 50% to the company, but on a prospective basis only. The plan also provides for performance incentives that can increase or decrease the benchmark ROE by as much as 100 basis points. The current mid-point of the ROE bandwidth, including performance incentives, is 11.09%. In December 2005, EMI received an order from MPSC approving purchase of the Attala facility and authorizing interim recovery. Pursuant to this order, EMI will file a base rate case in third or fourth quarter 2006 to obtain permanent recovery of, i.e. a return of and on, the Attala facility.
Storm Cost Recovery: In December 2005, EMI requested recovery of $84 million for storm costs recorded through November 2005. In February 2006, EMI filed an Application for an Accounting Order that requested the Mississippi Public Service Commission (MPSC) to certify an additional $36 million in storm restoration costs (or $120 million total) that had been identified through January 2006. In March 2006, EMI and the MPUS filed a Joint Stipulation that the initial procedural schedule be suspended and that the February 2006 Application be amended to include all restoration costs. Pursuant to the revised schedule, an order would be issued certifying storm restoration costs in June 2006, with any rate relief filing to be made after determination of community development block grant and securitization funds. Securitization legislation was signed into law on March 6, 2006. EMI plans to file a request for a financing order under the new law with the MPSC in the summer of 2006 with the earliest timing of the order becoming effective in fourth quarter 2006.

Entergy New Orleans

9.75% - 11.75% (electric)
10.25% - 11.25%
(gas)
10.75% in 2006 with no bandwidth (gas)

Recent activity: In recognition of the May elections in the City of New Orleans, on April 20, 2006, the City Council of New Orleans agreed to delay ENOI's 2005 FRP filing to July 2006, from the original May 2006 filing deadline.
Background:  In September 2005, the City Council of New Orleans approved a two year extension of ENOI's FRP with a ROE mid-point of 10.75%, a 45% hypothetical equity ratio, and electric and gas ROE bandwidths of 100 and 50 basis points, respectively. The Council's order also decoupled the company's Generation Performance-Based Rate (G-PBR) from its electric FRP, thereby allowing ENOI to earn up to $4.5 million annually under the G-PBR. However, the G-PBR has been temporarily suspended due to effects from Hurricane Katrina.
Storm Cost Recovery: ENOI has not yet filed for storm cost recovery. The timing and components of such a filing are subject to other recovery initiatives.
Bankruptcy activity:
The current schedule proposed by the Bankruptcy Court calls for the plan of reorganization to be filed in August 2006, the second extension from the original date in January 2006 and the initial extension date in April 2006.

Wholesale Regulation (FERC)

System Energy Resources, Inc.

10.94%

Recent activity: None
Background: ROE approved by July 2001 FERC order. No cases pending.

     

System Agreement

NA

Recent activity: A compliance filing to implement the FERC decision in this case was filed by Entergy at FERC on April 10, 2006 which proposed that all payments required by the June 2005 FERC decision be properly reflected as fuel costs.
Background:
The system agreement case, originally filed in 2001, addresses reallocation of production costs among the utility operating subsidiaries. In June 2005, the FERC issued a decision stating that rough production cost equalization did not exist in the Entergy system. The FERC established a bandwidth of +/- 11 % to reallocate production costs and ordered that this approach be applied prospectively. In December 2005, FERC essentially denied requests for rehearing of its June 2005 order and established, among other things, that 1) the bandwidth would be applied to calendar year 2006 actual production costs and 2) 2007 would be the first possible year of payments among Entergy's operating companies. Appeals of this decision were filed by the APSC, LPSC, MPSC and AECC in the federal appeals court for the D.C. circuit. These appeals have been consolidated. The City of New Orleans intervened in the LPSC appeal, and Entergy has intervened in all appeals.

Independent Coordinator of Transmission
(ICT)

NA

Recent activity: On April 24, 2006 the FERC approved Entergy's ICT proposal with modification.
Background: Entergy initially filed for FERC approval of its alternative transmission structure in April 2004. In that and subsequent filings, Entergy proposed that an independent entity (the ICT) perform certain transmission functions, oversee other aspects of the operation of the transmission system, and implement a more efficient expansion pricing policy. Based on a positive Declaratory Order issued by the FERC in March 2005, Entergy filed for approval of the ICT in May 2005.

 

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

As-reported measures are computed in accordance with GAAP as they include all components of earnings, including special items. Operational measures are non-GAAP measures as they are calculated using operational earnings, which excludes the impact of special items. A reconciliation of operational earnings per share to as-reported earnings per share is provided in Appendix H-1.

Appendix D-1: GAAP and Non-GAAP Financial Performance Measures

First Quarter 2006 vs. 2005 (see appendix G for definitions of certain measures)

For 12 months ending March 31

2006

2005

Change

GAAP Measures

Return on average invested capital - as-reported

7.30%

7.01%

0.29%

Return on average common equity - as-reported

11.46%

10.35%

1.11%

Net margin - as-reported

8.71%

9.41%

(0.70)%

Cash flow interest coverage

4.71

7.55

(2.84)

Book value per share

$38.66

$37.66

$1.00

End of period shares outstanding (millions)

207.9

212.8

(4.9)

Non-GAAP Measures

Return on average invested capital - operational

7.53%

6.93%

0.60%

Return on average common equity - operational

11.96%

10.19%

1.77%

Net margin - operational

9.09%

9.27%

(0.18)%

As of March 31 ($ in millions)

2006

2005

Change

GAAP Measures

Cash and cash equivalents

752

477

275

Revolver capacity

2,733

1,070

1,663

Total debt

9,329

8,033

1,296

Debt to capital ratio

52.1%

49.0%

3.1%

Off-balance sheet liabilities:

Debt of joint ventures - Entergy's share

213

207

6

Leases - Entergy's share

519

564

(45)

Total off-balance sheet liabilities

732

771

(39)

Non-GAAP Measures

Total gross liquidity

3,485

1,547

1,938

Net debt to net capital ratio

50.0%

47.5%

2.5%

Net debt ratio including off-balance sheet liabilities

52.1%

49.9%

2.2%

 

Appendix D-2: Historical Performance Measures (see appendix G for definitions of measures)

2Q04(n) 3Q04(n) 4Q04(n) 1Q05 2Q05 3Q05 4Q05 1Q06 05YTD 06YTD

Financial

EPS - as-reported ($)

1.14

1.22

0.68

0.79

1.33

1.65

0.43

0.92

0.79

0.92

Less - special items ($)

0.06

-0.17

0.18

-0.01

-0.01

-0.03

-0.16

0.02

-0.01

0.02

EPS - operational ($)

1.08

1.39

0.50

0.80

1.34

1.68

0.59

0.90

0.80

0.90

Trailing Twelve Months

ROIC - as-reported (%)

6.37

5.90

7.29

7.01

7.12

7.49

7.22

7.30

7.01

7.30

ROIC - operational (%)

6.94

6.70

7.11

6.93

7.14

7.31

7.49

7.53

6.93

7.53

ROE - as-reported (%)

9.27

8.12

10.70

10.35

10.73

11.53

11.20

11.46

10.35

11.46

ROE - operational (%)

10.43

9.71

10.35

10.19

10.75

11.17

11.76

11.96

10.19

11.96

Cash Flow Interest Coverage

5.98

6.41

7.13

7.55

7.07

5.93

4.01

4.71

7.55

4.71

Debt to capital ratio (%)

47.4

46.8

47.4

49.0

49.9

51.9

53.1

52.1

49.0

52.1

Net debt/net capital ratio (%)

45.6

45.1

45.3

47.5

48.0

50.2

51.5

50.0

47.5

50.0

Utility

GWh billed

Residential

6,911

10,738

7,521

7,170

6,557

10,630

7,212

6,963

7,170

6,963

Commercial & Gov't

6,829

8,468

7,252

5,854

6,113

7,725

6,277

5,916

5,854

5,916

Industrial

9,922

10,456

10,425

9,452

9,649

9,736

8,778

9,053

9,452

9,053

Wholesale

2,367

2,040

1,799

1,728

1,931

2,227

1,549

1,555

1,728

1,555

O&M expense/MWh

$15.62

$12.97

$17.44

$14.98

$17.39

$11.35

$17.43

$16.12

$14.98

$16.12

Reliability

    SAIFI

1.9

1.8

1.9

1.5

1.8

1.8(o)

1.7(o)

1.8(o)

1.5

1.8(o)

    SAIDI

162

159

169

136

157

158(o)

161(o)

174(o)

136

174(o)

Nuclear

Net MW in operation

4,001

4,001

4,058

4,058

4,105

4,105

4,105

4,135

4,058

4,135

Avg. realized price per MWh

$41.33

$43.38

$40.69

$41.56

$42.63

$42.58

$42.75

$44.39

$41.56

$44.39

Production cost/MWh

$18.33

$21.68

$22.28

$18.71

$19.22

$20.14

$19.48

$19.08

$18.71

$19.08

Non-fuel O&M expense/MWh

$19.57

$22.83

$23.99

$20.03

$20.39

$20.32

$19.95

$19.74

$20.03

$19.74

Generation in GWh

8,196

8,075

7,567

8,267

8,156

8,474

8,643

8,742

8,267

8,742

Capacity factor

94%

92%

85%

93%

91%

95%

95%

97%

93%

97%

  1. Data has not been restated for the de-consolidation of ENOI which was the accounting adopted by Entergy in third quarter 2005, retroactive to first quarter 2005.
  2. Excludes impact of major storm activity.

Appendix E provides a summary of planned capital expenditures. Entergy's capital plan from 2006 through 2008 includes $3.6 billion for investment; more than $2.2 billion of this amount is associated with capital to maintain Entergy's existing assets. Approximately $1.1 billion is associated with specific investments such as transmission upgrades, dry cask storage and license renewal projects at certain nuclear sites, and other investments, such as the purchase of the Attala plant, that support the utility's ability to meet load growth.

Appendix E: Planned Capital Expenditures excluding Entergy New Orleans

2006-2008

($ in millions)

2006

2007

2008

Total

Storm capital

310

-

-

310

Maintenance capital

       

  Utility, Parent & Other

604

713

719

2,036

  Entergy Nuclear

62

64

50

176

  Non-nuclear wholesale assets

2

2

2

6

     Subtotal

668

779

771

2,218

Other capital commitments

       

  Utility, Parent & Other

277

203

301

781

  Entergy Nuclear

143

96

86

325

  Non-nuclear wholesale assets

6

6

5

17

     Subtotal

426

305

392

1,123

Total Planned Capital Expenditures

1,404

1,084

1,163

3,651

Entergy New Orleans' planned capital expenditures for the years 2006-2008 total $165 million, including $72 million of storm capital.

 

Appendix F provides details on scheduled long-term debt maturities including currently maturing portions.

Appendix F: Debt Maturity Schedule excluding Entergy New Orleans

Maturities as of 3/31/2006

($ in millions)

2006

2007

2008

2009-2010

2011+

Total

Utility, Parent & Other

-

93

1,074

2,093

5,395

8,655

Entergy Nuclear

81

80

20

42

151

374

Total

81

173

1,094

2,135

5,546

9,029

 

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

Appendix G: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures

Utility

GWh billed

Total number of GWh billed to all retail and wholesale customers

Operation & maintenance expense

Operation, maintenance and refueling expenses per MWh of billed sales, excluding fuel

SAIFI

System average interruption frequency index; average number per customer per year

SAIDI

System average interruption duration index; average minutes per customer per year

Number of customers

Number of customers at end of period

Competitive Businesses

Planned TWh of generation

Amount of output expected to be generated by Entergy Nuclear for nuclear units, or by non-nuclear wholesale assets for fossil and wind units, considering plant operating characteristics, outage schedules, and expected market conditions which impact dispatch

Percent of planned generation sold forward

Percent of planned generation output sold forward under contracts, forward physical contracts or forward financial contracts (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval

Unit-contingent

Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages

Unit-contingent with availability guarantees

Transaction under which power is supplied from a specific generation asset; if the asset is unavailable, seller is not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract

Firm liquidated damages (LD)

Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset); if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract

Planned net MW in operation

Amount of capacity to be available to generate power considering uprates planned to be completed within the calendar year

Bundled energy & capacity contract

A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold

Capacity contract

For Entergy Nuclear, a contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator

For Energy Commodity Services, a contract for the sale of capacity and related energy, in which capacity and energy are priced separately

Average contract price per MWh or per kW per month

Price at which generation output and/or capacity is expected to be sold to third parties, given existing contract prices based on expected dispatch or capacity

Average contract revenue per MWh

Price at which the combination of generation output and capacity are expected to be sold to third parties, given existing contract prices based on expected dispatch

Entergy Nuclear

Net MW in operation

Installed capacity owned or operated by Entergy Nuclear

Average realized price per MWh

As-reported revenue per MWh generated for all non-utility nuclear operations

Production cost per MWh

Fuel and non-fuel operation and maintenance expenses according to accounting standards that directly relate to the production of electricity per MWh

Non-fuel O&M expense per MWh

Operation, maintenance and refueling expenses per MWh of generation, excluding fuel

Generation in GWh

Total number of GWh produced by all non-utility nuclear facilities

Capacity factor

Normalized percentage of the period that the plant generates power

Refueling outage duration

Number of days lost for scheduled refueling outage during the period

Financial measures defined in the below table include measures prepared in accordance with generally accepted accounting principles, (GAAP), as well as non-GAAP measures. Non-GAAP measures are included in this release in order to provide metrics that remove the effect of less routine financial impacts from commonly used financial metrics.

Appendix G: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures (continued)

Financial Measures - GAAP

Return on average invested capital - as-reported

12-months rolling earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital

Return on average common equity - as-reported

12-months rolling earnings divided by average common equity

Net margin - as-reported

12-months rolling earnings divided by 12 months rolling revenue

Cash flow interest coverage

12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense

Book value per share

Common equity divided by end of period shares outstanding

Revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers

Total debt

Sum of short-term and long-term debt, notes payable, capital leases, and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any

Debt of joint ventures (Entergy's share)

Debt issued by Entergy-Koch, LP and non-nuclear wholesale assets business joint ventures for periods through third quarter 2004. Only non-nuclear wholesale assets business joint ventures debt included for periods thereafter.

Leases (Entergy's share)

Operating leases held by subsidiaries capitalized at implicit interest rate

Debt to capital

Gross debt divided by total capitalization

Financial Measures - Non-GAAP

Operational earnings

As-reported earnings applicable to common stock adjusted to exclude the impact of special items

Return on average invested capital - operational

12-months rolling operational earnings adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital

Return on average common equity - operational

12-months rolling operational earnings divided by average common equity

Net margin - operational

12-months rolling operational earnings divided by 12 months rolling revenue

Total gross liquidity

Sum of cash and revolver capacity

Net debt to net capital

Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents

Net debt including off-balance sheet liabilities

Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalents

 

Appendices H-1 and H-2 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.

Appendix H-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Return on Equity, Return on Invested Capital and Net Margin Metrics

($ in millions)

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

As-reported earnings-rolling 12 months (A)

799

715

910

874

895

963

898

920

Preferred dividends

23

23

24

23

24

25

25

27

Tax effected interest expense

303

293

295

282

278

287

293

304

As-reported earnings, rolling 12 months including preferred dividends and tax effected interest expense (B)

1,124

1,030

1,228

1,180

1,197

1,275

1,217

1,251

Special items in prior quarters

(113)

(100)

(11)

15

0

37

(11)

(43)

Special items 1Q04 thru 4Q05

Utility, Parent & Other

Tax benefits- Entergy Koch

17

Energy Commodity Services

Gain (loss) on disposition of assets

13

(40)

60

Energy Commodity Services asset and contract impairments

(36)

Utility, Parent & Other

Comp Retail asset impairments

(26)

Comp Retail discontinued operations

(1)

(3)

(7)

(8)

(2)

ENOI results

6

Total special items (C)

(100)

(140)

30

13

(2)

30

(45)

(40)

Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)

1,225

1,170

1,198

1,166

1,199

1,245

1,262

1,291

Operational earnings, rolling 12 months (A-C)

899

855

880

861

898

933

943

960

Average invested capital (D)

17,638

17,462

16,845

16,825

16,806

17,033

16,850

17,140

Average common equity (E)

8,619

8,806

8,500

8,452

8,347

8,350

8,020

8,026

Operating revenues (F)

9,231

9,427

9,686

9,289

9,465

9,661

10,106

10,564

ROIC - as-reported (B/D)

6.37

5.90

7.29

7.01

7.12

7.49

7.22

7.30

ROIC - operational ((B-C)/D)

6.94

6.70

7.11

6.93

7.14

7.31

7.49

7.53

ROE - as-reported (A/E)

9.27

8.12

10.70

10.35

10.73

11.53

11.20

11.46

ROE - operational ((A-C)/E)

10.43

9.71

10.35

10.19

10.75

11.17

11.76

11.96

Net margin - as-reported (A/F)

8.65

7.59

9.39

9.41

9.46

9.97

8.89

8.71

Net margin - operational ((A-C)/F)

9.74

9.07

9.08

9.27

9.48

9.66

9.33

9.09

 

 

Appendix H-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics

($ in millions)

2Q04

3Q04

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

Gross debt (A)

8,173

8,070

7,807

8,033

8,283

8,865

9,288

9,329

Less cash and cash equivalents (B)

558

541

620

477

607

598

583

752

Net debt (C)

7,615

7,528

7,187

7,556

7,676

8,267

8,705

8,576

Total capitalization (D)

17,252

17,245

16,469

16,393

16,609

17,070

17,477

17,888

Less cash and cash equivalents (B)

558

541

620

477

607

598

583

752

Net capital (E)

16,693

16,703

15,849

15,916

16,002

16,472

16,894

17,135

Debt to capital ratio % (A/D)

47.4

46.8

47.4

49.0

49.9

51.9

53.1

52.1

Net debt to net capital ratio % (C/E)

45.6

45.1

45.3

47.5

48.0

50.2

51.5

50.0

Off-balance sheet liabilities (F)

1,037

1,030

769

771

780

779

778

732

Net debt to net capital ratio including off-balance sheet liabilities % ((C+F)/(E+F))

48.8

48.3

47.9

49.9

50.4

52.4

53.7

52.1

Revolver capacity (G)

1,280

1,310

1,490

1,070

1,407

791

2,545

2,733

Gross liquidity (B+G)

1,838

1,851

2,110

1,547

2,014

1,389

3,128

3,485

 

The Entergy Investor Relations team has returned to its offices in New Orleans and can be contacted as follows:

 

Michele Lopiccolo                Paul LaRosa                        Paula Waters
Phone 504/576-4879            Phone 504/576-4878             Phone 504/576- 4380

 

Investor Relations Fax 504/576-2897

 

 

 

Entergy's common stock is listed on the New York, Chicago, and Pacific exchanges under the symbol "ETR".

Additional investor information can be accessed on-line at
www.entergy.com/earnings

**********************************************************************************************************************

In this release and from time to time, Entergy makes statements concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements involve a number of risks and uncertainties, and there are factors that could cause actual results to differ materially from those expressed or implied in these statements. Some of those factors include, but are not limited to the risk factors discussed in our Form 10-K as well as the following factors: resolution of pending and future rate cases and negotiations, including various performance-based rate discussions and implementation of new Texas legislation, and other proceedings, including those related to Entergy's System Agreement, Entergy's utility supply plan, recovery of storm costs, and recovery of fuel and purchased power costs, Entergy's ability to manage its operation and maintenance costs, the performance of Entergy's generating plants, and particularly the capacity factor at its nuclear generating facilities, prices for power generated by Entergy's unregulated generating facilities, the ability to hedge, sell power forward or otherwise reduce the market price risk associated with those facilities, including the Non-Utility Nuclear plants, and the prices and availability of fuel and power Entergy must purchase for its utility customers, and Entergy's ability to meet credit support requirements for fuel and power supply contracts, Entergy's ability to develop and execute on a point of view regarding prices of electricity, natural gas, and other energy-related commodities, changes in the financial markets, particularly those affecting the availability of capital and Entergy's ability to refinance existing debt, execute its share repurchase program, and fund investments and acquisitions, actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies' ratings criteria, changes in inflation, interest rates, and foreign currency exchange rates, Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms, volatility and changes in markets for electricity, natural gas, uranium, and other energy-related commodities, changes in utility regulation, including the beginning or end of retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, the establishment of a regional transmission organization that includes Entergy's utility service territory, and the application of market power criteria by the Federal Energy Regulatory Commission, changes in regulation of nuclear generation facilities and nuclear materials and fuel, including possible shutdown of nuclear generating facilities, particularly those in the northeastern United States, uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel storage and disposal, resolution of pending or future applications for license extensions or modifications of nuclear generating facilities, changes in law resulting from the new federal energy legislation, including the effects of the Public Utilities Holding Company Act of 1935 repeal, changes in environmental, tax, and other laws, including requirements for reduced emissions of sulfur, nitrogen, carbon, mercury, and other substances, the economic climate, particularly growth in Entergy's service territory, variations in weather and the occurrence of hurricanes and other storms and disasters, including uncertainties associated with efforts to remediate the effects of Hurricanes Katrina and Rita and recovery of costs associated with restoration including Entergy's ability to obtain financial assistance from governmental authorities in connection with these storms, the outcome of the Chapter 11 bankruptcy proceeding of Entergy New Orleans, Inc. and the impact of this proceeding on other Entergy companies, advances in technology, the potential effects of threatened or actual terrorism and war, the effects of Entergy's strategies to reduce tax payments, the effects of litigation and government investigations, changes in accounting standards, corporate governance, and securities law requirements, Entergy's ability to attract and retain talented management and directors.

 

Entergy Corporation
 
Consolidating Balance Sheet 
March 31, 2006 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 140,654    $ 9,986    $ -    $ 150,640 
  Temporary cash investments - at cost,              
   which approximates market 271,088    330,658      601,746 
  Special deposits       - 
     Total cash and cash equivalents 411,742    340,644      752,386 
Notes receivable - Entergy New Orleans DIP loan 80,000        80,000 
Notes receivable 831,167    1,139,435    (1,967,500)   3,102 
Accounts receivable:              
  Customer 597,140        597,140 
  Allowance for doubtful accounts (27,206)   (2,064)     (29,270)
  Associated companies 15,535    81,802    (97,337)   - 
  Other 194,794    164,230      359,024 
  Accrued unbilled revenues 233,907        233,907 
     Total receivables 1,014,170    243,968    (97,337)   1,160,801 
Deferred fuel costs 268,270        268,270 
Accumulated deferred income taxes       - 
Fuel inventory - at average cost 231,785    3,017      234,802 
Materials and supplies - at average cost 379,852    184,401      564,253 
Deferred nuclear refueling outage costs 50,464    76,780      127,244 
Prepayments and other 62,798    30,448      93,246 
TOTAL 3,330,248    2,018,693    (2,064,837)   3,284,104 
                
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 8,159,030    421,619    (8,284,777)   295,872 
Decommissioning trust funds 1,169,323    1,488,869      2,658,192 
Non-utility property - at cost (less accumulated depreciation) 232,284    3,039      235,323 
Other 34,096    49,620      83,716 
TOTAL 9,594,733    1,963,147    (8,284,777)   3,273,103 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 27,892,756    2,009,453    (2,756)   29,899,453 
Property under capital lease 726,597        726,597 
Natural gas 86,051        86,051 
Construction work in progress 760,585    330,138      1,090,723 
Nuclear fuel under capital lease 257,467        257,467 
Nuclear fuel 111,493    313,331      424,824 
TOTAL PROPERTY, PLANT AND EQUIPMENT 29,834,949    2,652,922    (2,756)   32,485,115 
Less - accumulated depreciation and amortization 12,878,812    296,070      13,174,882 
PROPERTY, PLANT AND EQUIPMENT - NET 16,956,137    2,356,852    (2,756)   19,310,233 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 709,514        709,514 
  Other regulatory assets 2,273,111        2,273,111 
  Deferred fuel costs 210,149        210,149 
Long-term receivables 24,265        24,265 
Goodwill 374,099    3,073      377,172 
Other 880,366    815,806    (641,777)   1,054,395 
TOTAL 4,471,504    818,879    (641,777)   4,648,606 
               
TOTAL ASSETS $ 34,352,622    $ 7,157,571    $ (10,994,147)   $ 30,516,046 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation
 
Consolidating Balance Sheet 
March 31, 2006 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 23,335    $ 80,528    $ -    $ 103,863 
Notes payable:              
  Associated companies 1,380,601    596,899    (1,977,500)   - 
  Other 41        41 
Account payable:              
  Associated companies 68,186    24,711    (92,897)   - 
  Other 841,879    123,350      965,229 
Customer deposits 230,092        230,092 
Taxes accrued 289,369    (65,243)     224,126 
Accumulated deferred income taxes 95,644        95,644 
Nuclear refueling outage costs 19,101        19,101 
Interest accrued 133,111    4,883      137,994 
Obligations under capital leases 138,488        138,488 
Other 129,574    218,202      347,776 
TOTAL 3,349,421    983,330    (2,070,397)   2,262,354 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,404,404    146,635      5,551,039 
Accumulated deferred investment tax credits 372,084        372,084 
Obligations under capital leases 149,674        149,674 
Other regulatory liabilities 432,878        432,878 
Decommissioning and retirement cost liabilities 1,183,156    775,368      1,958,524 
Transition to competition 79,098        79,098 
Regulatory reserves 17,245        17,245 
Accumulated provisions 350,747    204,725      555,472 
Long-term debt 8,631,091    353,981    (60,141)   8,924,931 
Preferred stock with sinking fund 11,700        11,700 
Other 1,646,380    575,163    (579,626)   1,641,917 
TOTAL 18,278,457    2,055,872    (639,767)   19,694,562 
               
Preferred stock without sinking fund 486,209    426,637    (391,937)   520,909 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2006 2,205,192    1,091,856    (3,294,566)   2,482 
Paid-in capital 6,650,028    1,573,971    (3,407,962)   4,816,037 
Retained earnings 5,660,224    1,203,133    (1,353,460)   5,509,897 
Accumulated other comprehensive income (loss) (15,720)   (133,912)   626    (149,006)
Less - treasury stock, at cost (40,251,611 shares in 2006) 2,261,189    43,316    (163,316)   2,141,189 
TOTAL 12,238,535    3,691,732    (7,892,046)   8,038,221 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 34,352,622    $ 7,157,571    $ (10,994,147)   $ 30,516,046 
               
*Totals may not foot due to rounding.              
               

 

Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 207,135    $ 14,638    $ -    $ 221,773 
  Temporary cash investments - at cost,              
   which approximates market 127,786    233,261      361,047 
  Special deposits       - 
     Total cash and cash equivalents 334,921    247,899      582,820 
Notes receivable - Entergy New Orleans DIP loan 90,000        90,000 
Notes receivable 575,873    1,144,505    (1,717,151)   3,227 
Accounts receivable:              
  Customer 732,455        732,455 
  Allowance for doubtful accounts (28,635)   (2,170)     (30,805)
  Associated companies 33,851    69,719    (103,570)   - 
  Other 193,548    162,866      356,414 
  Accrued unbilled revenues 477,570        477,570 
   Total receivables 1,408,789    230,415    (103,570)   1,535,634 
Deferred fuel costs 543,927        543,927 
Accumulated deferred income taxes       - 
Fuel inventory - at average cost 204,382    1,813      206,195 
Materials and supplies - at average cost 369,397    241,535      610,932 
Deferred nuclear refueling outage costs 64,157    93,607      157,764 
Prepayments and other 301,387    24,408      325,795 
TOTAL 3,892,833    1,984,182    (1,820,721)   4,056,294 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 8,198,240    428,006    (8,329,462)   296,784 
Decommissioning trust funds 1,136,006    1,470,759      2,606,765 
Non-utility property - at cost (less accumulated depreciation) 226,264    2,569      228,833 
Other 35,594    45,941      81,535 
TOTAL 9,596,104    1,947,275    (8,329,462)   3,213,917 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 27,176,956    1,987,079    (3,008)   29,161,027 
Property under capital lease 727,565        727,565 
Natural gas 86,794        86,794 
Construction work in progress 1,291,374    232,711      1,524,085 
Nuclear fuel under capital lease 271,615        271,615 
Nuclear fuel 101,403    335,243      436,646 
TOTAL PROPERTY, PLANT AND EQUIPMENT 29,655,707    2,555,033    (3,008)   32,207,732 
Less - accumulated depreciation and amortization 12,730,545    280,142      13,010,687 
PROPERTY, PLANT AND EQUIPMENT - NET 16,925,162    2,274,891    (3,008)   19,197,045 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 735,221        735,221 
  Other regulatory assets 2,133,724        2,133,724 
  Deferred fuel costs 120,489        120,489 
Long-term receivables 25,572        25,572 
Goodwill 374,099    3,073      377,172 
Other 841,068    801,587    (650,820)   991,835 
TOTAL 4,230,173    804,660    (650,820)   4,384,013 
               
TOTAL ASSETS $ 34,644,272    $ 7,011,008    $ (10,804,011)   $ 30,851,269 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 22,989    $ 80,528    $ -    $ 103,517 
Notes payable:              
  Associated companies 926,271    530,880    (1,457,151)   - 
  Other 40,041        40,041 
Account payable:              
  Associated companies 77,793    23,393    (101,186)   - 
  Other 1,494,385    161,402      1,655,787 
Customer deposits 222,044    162      222,206 
Taxes accrued 316,659    (128,500)     188,159 
Accumulated deferred income taxes 143,409        143,409 
Nuclear refueling outage costs 15,548        15,548 
Interest accrued 153,269    1,586      154,855 
Obligations under capital leases 130,882        130,882 
Other 66,367    407,143      473,510 
TOTAL 3,609,657    1,076,594    (1,558,337)   3,127,914 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,245,208    34,020      5,279,228 
Accumulated deferred investment tax credits 376,550        376,550 
Obligations under capital leases 175,005        175,005 
Other regulatory liabilities 408,667        408,667 
Decommissioning and retirement cost liabilities 1,161,830    762,141      1,923,971 
Transition to competition 79,101        79,101 
Regulatory reserves 18,624        18,624 
Accumulated provisions 350,265    205,763      556,028 
Long-term debt 8,791,811    349,073    (316,391)   8,824,493 
Preferred stock with sinking fund 13,950        13,950 
Other 1,729,077    749,961    (600,021)   1,879,017 
TOTAL 18,350,088    2,100,958    (916,412)   19,534,634 
               
Preferred stock without sinking fund 411,321    426,590    (391,937)   445,974 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
 issued 248,174,087 shares in 2005 2,205,192    1,091,856    (3,294,566)   2,482 
Paid-in capital 6,653,879    1,565,320    (3,401,562)   4,817,637 
Retained earnings 5,712,395    1,121,151    (1,405,139)   5,428,407 
Accumulated other comprehensive income (loss) (16,300)   (328,145)   626    (343,819)
Less - treasury stock, at cost (40,644,602 shares in 2005) 2,281,960    43,316    (163,316)   2,161,960 
TOTAL 12,273,206    3,406,866    (7,937,325)   7,742,747 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 34,644,272    $ 7,011,008    $ (10,804,011)   $ 30,851,269 
               
*Totals may not foot due to rounding.              
               

 

Entergy Corporation 
 
Consolidating Balance Sheet 
March 31, 2006 vs December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ (66,481)   $ (4,652)   $ -    $ (71,133)
  Temporary cash investments - at cost,               
   which approximates market 143,302    97,397      240,699 
  Special deposits       - 
     Total cash and cash equivalents 76,821    92,745      169,566 
Notes receivable - Entergy New Orleans DIP loan (10,000)       (10,000)
Notes receivable 255,294    (5,070)   (250,349)   (125)
Accounts receivable:              
  Customer (135,315)       (135,315)
  Allowance for doubtful accounts 1,429    106      1,535 
  Associated companies (18,316)   12,083    6,233    - 
  Other 1,246    1,364      2,610 
  Accrued unbilled revenues (243,663)       (243,663)
     Total receivables (394,619)   13,553    6,233    (374,833)
Deferred fuel costs (275,657)       (275,657)
Accumulated deferred income taxes       - 
Fuel inventory - at average cost 27,403    1,204      28,607 
Materials and supplies - at average cost 10,455    (57,134)     (46,679)
Deferred nuclear refueling outage costs (13,693)   (16,827)     (30,520)
Prepayments and other (238,589)   6,040      (232,549)
TOTAL (562,585)   34,511    (244,116)   (772,190)
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity (39,210)   (6,387)   44,685    (912)
Decommissioning trust funds 33,317    18,110      51,427 
Non-utility property - at cost (less accumulated depreciation) 6,020    470      6,490 
Other (1,498)   3,679      2,181 
TOTAL (1,371)   15,872    44,685    59,186 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 715,800    22,374    252    738,426 
Property under capital lease (968)       (968)
Natural gas (743)       (743)
Construction work in progress (530,789)   97,427      (433,362)
Nuclear fuel under capital lease (14,148)       (14,148)
Nuclear fuel 10,090    (21,912)     (11,822)
TOTAL PROPERTY, PLANT AND EQUIPMENT 179,242    97,889    252    277,383 
Less - accumulated depreciation and amortization 148,267    15,928      164,195 
PROPERTY, PLANT AND EQUIPMENT - NET 30,975    81,961    252    113,188 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net (25,707)       (25,707)
  Other regulatory assets 139,387        139,387 
  Deferred fuel costs 89,660        89,660 
Long-term receivables (1,307)       (1,307)
Goodwill       - 
Other 39,298    14,219    9,043    62,560 
TOTAL 241,331    14,219    9,043    264,593 
               
TOTAL ASSETS $ (291,650)   $ 146,563    $ (190,136)   $ (335,223)
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
March 31, 2006 vs December 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 346    $ -    $ -    $ 346 
Notes payable:              
  Associated companies 454,330    66,019    (520,349)   - 
  Other (40,000)       (40,000)
Account payable:              
  Associated companies (9,607)   1,318    8,289    - 
  Other (652,506)   (38,052)     (690,558)
Customer deposits 8,048    (162)     7,886 
Taxes accrued (27,290)   63,257      35,967 
Accumulated deferred income taxes (47,765)       (47,765)
Nuclear refueling outage costs 3,553        3,553 
Interest accrued (20,158)   3,297      (16,861)
Obligations under capital leases 7,606        7,606 
Other 63,207    (188,941)     (125,734)
TOTAL (260,236)   (93,264)   (512,060)   (865,560)
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 159,196    112,615      271,811 
Accumulated deferred investment tax credits (4,466)       (4,466)
Obligations under capital leases (25,331)       (25,331)
Other regulatory liabilities 24,211        24,211 
Decommissioning and retirement cost liabilities 21,326    13,227      34,553 
Transition to competition (3)       (3)
Regulatory reserves (1,379)       (1,379)
Accumulated provisions 482    (1,038)     (556)
Long-term debt (160,720)   4,908    256,250    100,438 
Preferred stock with sinking fund (2,250)       (2,250)
Other (82,697)   (174,798)   20,395    (237,100)
TOTAL (71,631)   (45,086)   276,645    159,928 
               
Preferred stock without sinking fund 74,888    47      74,935 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
 issued 248,174,087 shares in 2006 and 2005       - 
Paid-in capital (3,851)   8,651    (6,400)   (1,600)
Retained earnings (52,171)   81,982    51,679    81,490 
Accumulated other comprehensive income (loss) 580    194,233      194,813 
Less - treasury stock, at cost (20,771)       (20,771)
TOTAL (34,671)   284,866    45,279    295,474 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ (291,650)   $ 146,563    $ (190,136)   $ (335,223)
               
*Totals may not foot due to rounding.              
               
               

 

Entergy Corporation 
 
Consolidating Income Statement 
Three Months Ended March 31, 2006 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 2,093,604    $ -    $ (671)   $ 2,092,933 
Natural gas   37,415        37,415 
Competitive businesses   10,219    444,479    (17,015)   437,683 
     Total   2,141,238    444,479    (17,686)   2,568,031 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   781,675    58,496      840,171 
  Purchased power   469,129    9,328    (17,087)   461,370 
  Nuclear refueling outage expenses   19,835    22,158      41,993 
  Other operation and maintenance   351,599    178,544    (713)   529,430 
Decommissioning   20,177    15,419      35,596 
Taxes other than income taxes   86,279    17,059      103,338 
Depreciation and amortization   187,570    17,818      205,388 
Other regulatory charges (credits) - net   (44,018)       (44,018)
     Total   1,872,246    318,822    (17,800)   2,173,268 
                 
OPERATING INCOME   268,992    125,657    114    394,763 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   15,459        15,459 
Interest and dividend income   39,036    29,068    (24,273)   43,831 
Equity in earnings (loss) of unconsolidated equity affiliates   6,366    (2,780)     3,586 
Miscellaneous - net   (5,428)   (665)   (114)   (6,207)
     Total   55,433    25,623    (24,387)   56,669 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   118,604    1,877      120,481 
Other interest - net   23,677    17,843    (24,259)   17,261 
Allowance for borrowed funds used during construction   (9,045)       (9,045)
     Total   133,236    19,720    (24,259)   128,697 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   191,189    131,560    (14)   322,735 
                 
Income taxes   68,554    50,276      118,830 
                 
INCOME FROM CONTINUING OPERATIONS   122,635    81,284    (14)   203,905 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (1,204))   (2,239)       (2,239)
                 
CONSOLIDATED NET INCOME   120,396    81,284    (14)   201,666 
                 
Preferred dividend requirements and other   7,183    869    (14)   8,038 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 113,213    $ 80,415    $ -    $ 193,628 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.55    $0.39        $0.94 
  DILUTED   $0.55    $0.38        $0.93 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.01)         ($0.01)
  DILUTED   ($0.01)         ($0.01)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.54    $0.39        $0.93 
  DILUTED   $0.54    $0.38        $0.92 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               207,732,341 
  DILUTED               211,374,512 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended March 31, 2005 
(Dollars in thousands) 
(Unaudited) 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 1,702,485    $ -    $ (468)   $ 1,702,017 
Natural gas   26,855        26,855 
Competitive businesses   9,926    387,977    (16,593)   381,310 
     Total   1,739,266    387,977    (17,061)   2,110,182 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   447,101    51,885      498,986 
  Purchased power   441,498    6,918    (16,793)   431,623 
  Nuclear refueling outage expenses   16,806    23,005      39,811 
  Other operation and maintenance   342,891    161,131    (382)   503,639 
Decommissioning   22,256    14,742      36,998 
Taxes other than income taxes   78,464    12,152      90,616 
Depreciation and amortization   197,412    18,109      215,521 
Other regulatory charges (credits) - net   (18,020)       (18,020)
     Total   1,528,408    287,942    (17,175)   1,799,174 
                 
OPERATING INCOME   210,858    100,036    114    311,008 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   12,602        12,602 
Interest and dividend income   24,651    23,376    (17,409)   30,618 
Equity in earnings (loss) of unconsolidated equity affiliates   4,771    (1,469)     3,302 
Miscellaneous - net   (2,578)   28,623    (114)   25,931 
     Total   39,446    50,530    (17,523)   72,453 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   103,742    3,524      107,266 
Other interest - net   14,528    14,352    (17,395)   11,485 
Allowance for borrowed funds used during construction   (7,277)       (7,277)
     Total   110,993    17,876    (17,395)   111,474 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   139,311    132,690    (14)   271,987 
                 
Income taxes   40,667    51,575      92,242 
                 
INCOME FROM CONTINUING OPERATIONS   98,644    81,115    (14)   179,745 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($732))   (1,366)       (1,366)
                 
CONSOLIDATED NET INCOME   97,278    81,115    (14)   178,379 
                 
Preferred dividend requirements and other   5,528    869    (14)   6,383 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 91,750    $ 80,246    $ -    $ 171,996 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.44    $0.37        $0.81 
  DILUTED   $0.43    $0.37        $0.80 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.01)         ($0.01)
  DILUTED   ($0.01)         ($0.01)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.43    $0.37        $0.80 
  DILUTED   $0.42    $0.37        $0.79 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
BASIC               214,128,023 
DILUTED               218,633,202 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended March 31, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 391,119    $ -    $ (203)   $ 390,916 
Natural gas   10,560        10,560 
Competitive businesses   293    56,502    (422)   56,373 
     Total   401,972    56,502    (625)   457,849 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   334,574    6,611      341,185 
  Purchased power   27,631    2,410    (294)   29,747 
  Nuclear refueling outage expenses   3,029    (847)     2,182 
  Other operation and maintenance   8,708    17,414    (331)   25,791 
Decommissioning   (2,079)   677      (1,402)
Taxes other than income taxes   7,815    4,907      12,722 
Depreciation and amortization   (9,842)   (291)     (10,133)
Other regulatory charges (credits )- net   (25,998)       (25,998)
     Total   343,838    30,881    (625)   374,094 
                 
OPERATING INCOME   58,134    25,622      83,755 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   2,857        2,857 
Interest and dividend income   14,385    5,692    (6,864)   13,213 
Equity in earnings (loss) of unconsolidated equity affiliates   1,595    (1,311)     284 
Miscellaneous - net   (2,850)   (29,288)     (32,138)
     Total   15,987    (24,907)   (6,864)   (15,784)
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   14,862    (1,647)     13,215 
Other interest - net   9,149    3,491    (6,864)   5,776 
Allowance for borrowed funds used during construction   (1,768)   -     (1,768)
     Total   22,243    1,844    (6,864)   17,223 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   51,878    (1,130)     50,748 
                 
Income taxes   27,887    (1,299)     26,588 
                 
INCOME FROM CONTINUING OPERATIONS   23,991    170      24,160 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes)   (873)       (873)
                 
CONSOLIDATED NET INCOME   23,118    170      23,287 
                 
Preferred dividend requirements and other   1,655        1,655 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 21,463    $ 170    $ -    $ 21,632 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.11    $0.02        $0.13 
  DILUTED   $0.12    $0.01        $0.13 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC           - 
  DILUTED           - 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.11    $0.02        $0.13 
  DILUTED   $0.12    $0.01        $0.13 
                 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidating Income Statement 
Twelve Months Ended March 31, 2006 
(Dollars in thousands) 
(Unaudited) 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 8,840,402    $ -    $ (2,655)   $ 8,837,748 
Natural gas   88,220        88,220 
Competitive businesses   46,292    1,669,783    (77,949)   1,638,126 
     Total   8,974,914    1,669,783    (80,604)   10,564,094 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,276,462    240,739      2,517,201 
  Purchased power   2,587,168    42,503    (78,676)   2,550,996 
  Nuclear refueling outage expenses   76,995    87,841      164,835 
  Provision for turbine commitments, asset impairments                
   and restructuring charges         - 
  Other operation and maintenance   1,467,304    683,073    (2,384)   2,147,994 
Decommissioning   81,831    59,888      141,718 
Taxes other than income taxes   333,581    61,663      395,243 
Depreciation and amortization   779,812    66,431      846,243 
Other regulatory charges (credits) - net   (75,880)       (75,880)
     Total   7,527,273    1,242,138    (81,060)   8,688,350 
                 
OPERATING INCOME   1,447,641    427,645    456    1,875,744 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   48,594        48,594 
Interest and dividend income   142,883    101,212    (80,403)   163,693 
Equity in earnings (loss) of unconsolidated equity affiliates   12,060    (10,788)     1,272 
Miscellaneous - net   (21,884)   4,450    (456)   (17,893)
     Total   181,653    94,874    (80,859)   195,665 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   441,917    11,632      453,549 
Other interest - net   92,019    58,750    (80,348)   70,420 
Allowance for borrowed funds used during construction   (31,144)       (31,144)
     Total   502,792    70,382    (80,348)   492,825 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,126,502    452,137    (55)   1,578,584 
                 
Income taxes   431,559    154,314      585,873 
                 
INCOME FROM CONTINUING OPERATIONS   694,943    297,823    (55)   992,711 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (24,523))   (45,666)       (45,666)
                 
CONSOLIDATED NET INCOME   649,277    297,823    (55)   947,045 
                 
Preferred dividend requirements and other   23,662    3,475    (55)   27,082 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 625,615    $ 294,348    $ -    $ 919,963 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $3.22    $1.41        $4.63 
  DILUTED   $3.16    $1.38        $4.54 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.22)         ($0.22)
  DILUTED   ($0.21)         ($0.21)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $3.00    $1.41        $4.41 
  DILUTED   $2.95    $1.38        $4.33 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               208,564,870 
  DILUTED               212,618,629 
                 
*Totals may not foot due to rounding.                
                 
                 

 

Entergy Corporation 
 
Consolidating Income Statement 
Twelve Months Ended March 31, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 7,688,475    $ -    $ (1,828)   $ 7,686,647 
Natural gas   61,318        61,318 
Competitive businesses   46,709    1,558,262    (64,055)   1,540,916 
     Total   7,796,502    1,558,262    (65,883)   9,288,881 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,032,587    215,690      2,248,277 
  Purchased power   1,807,772    42,603    (64,794)   1,785,581 
  Nuclear refueling outage expenses   67,296    96,980      164,276 
  Provision for turbine commitments, asset impairments                
   and restructuring charges     55,000      55,000 
  Other operation and maintenance   1,507,329    633,763    (1,850)   2,139,243 
Decommissioning   90,064    58,115      148,179 
Taxes other than income taxes   309,570    55,006      364,576 
Depreciation and amortization   811,449    64,754      876,203 
Other regulatory charges (credits) - net   (87,162)       (87,162)
     Total   6,538,905    1,221,911    (66,644)   7,694,173 
                 
OPERATING INCOME   1,257,597    336,351    761    1,594,708 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   43,561        43,561 
Interest and dividend income   88,490    82,688    (59,448)   111,730 
Equity in earnings (loss) of unconsolidated equity affiliates   25,002    (100,013)     (75,011)
Miscellaneous - net   26,694    (5,219)   (760)   20,715 
     Total   183,747    (22,544)   (60,208)   100,995 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   423,927    15,771      439,698 
Other interest - net   49,034    55,467    (59,379)   45,122 
Allowance for borrowed funds used during construction   (26,842)       (26,842)
     Total   446,119    71,238    (59,379)   457,978 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   995,225    242,569    (68)   1,237,725 
                 
Income taxes   347,641    (8,710)     338,931 
                 
INCOME FROM CONTINUING OPERATIONS   647,584    251,279    (68)   898,794 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $28)   (1,107)       (1,107)
                 
CONSOLIDATED NET INCOME   646,477    251,279    (68)   897,687 
                 
Preferred dividend requirements and other   22,231    1,165    (68)   23,328 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 624,246    $ 250,114    $ -    $ 874,359 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $2.81    $1.12        $3.93 
  DILUTED   $2.76    $1.10        $3.86 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.01)         ($0.01)
  DILUTED   ($0.01)         ($0.01)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.80    $1.12        $3.92 
  DILUTED   $2.75    $1.10        $3.85 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               222,875,550 
  DILUTED               227,063,068 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation 
 
Consolidating Income Statement 
Twelve Months Ended March 31, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 1,151,927    $ -    $ (827)   $ 1,151,101 
Natural gas   26,902        26,902 
Competitive businesses   (417)   111,521    (13,894)   97,210 
     Total   1,178,412    111,521    (14,721)   1,275,213 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   243,875    25,049      268,924 
  Purchased power   779,396    (100)   (13,882)   765,415 
  Nuclear refueling outage expenses   9,699    (9,139)     559 
  Provision for turbine commitments, asset impairments                
   and restructuring charges     (55,000)     (55,000)
  Other operation and maintenance   (40,025)   49,310    (534)   8,751 
Decommissioning   (8,233)   1,773      (6,461)
Taxes other than income taxes   24,011    6,657      30,667 
Depreciation and amortization   (31,637)   1,677      (29,960)
Other regulatory charges (credits) - net   11,282        11,282 
     Total   988,368    20,227    (14,416)   994,177 
                 
OPERATING INCOME   190,044    91,294    (305)   281,035 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   5,033        5,033 
Interest and dividend income   54,393    18,524    (20,955)   51,963 
Equity in earnings (loss) of unconsolidated equity affiliates   (12,942)   89,225      76,283 
Miscellaneous - net   (48,578)   9,669    304    (38,608)
     Total   (2,094)   117,418    (20,651)   94,670 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   17,990    (4,139)     13,851 
Other interest - net   42,985    3,283    (20,969)   25,298 
Allowance for borrowed funds used during construction   (4,302)       (4,302)
     Total   56,673    (856)   (20,969)   34,847 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   131,277    209,568    13    340,858 
                 
Income taxes   83,918    163,024      246,942 
                 
INCOME FROM CONTINUING OPERATIONS   47,359    46,544    13    93,916 
                  
LOSS FROM DISCONTINUED OPERATIONS (net of taxes)   (44,559)       (44,559)
                 
CONSOLIDATED NET INCOME   2,800    46,544    13    49,357 
                 
Preferred dividend requirements and other   1,431    2,310    13    3,754 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 1,369    $ 44,234    $ -    $ 45,603 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $0.41    $0.29        $0.70 
  DILUTED   $0.40    $0.28        $0.68 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.21)         ($0.21)
  DILUTED   ($0.20)         ($0.20)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.20    $0.29        $0.49 
  DILUTED   $0.20    $0.28        $0.48 
                 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidated Cash Flow Statement 
Three Months Ended March 31, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
             
    2006   2005   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $201,667    $178,379    $23,288 
Adjustments to reconcile consolidated net income to net cash flow            
provided by operating activities:            
  Reserve for regulatory adjustments   42,162    16,498    25,664 
  Other regulatory credits - net   (44,018)   (18,020)   (25,998)
  Depreciation, amortization, and decommissioning   241,807    253,089    (11,282)
  Deferred income taxes and investment tax credits   (52,261)   23,878    (76,139)
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   (1,412)   (2,702)   1,290 
  Changes in working capital:            
    Receivables   328,019    134,939    193,080 
    Fuel inventory   (28,607)   (3,273)   (25,334)
    Accounts payable   (256,420)   (165,269)   (91,151)
    Taxes accrued   459,003    23,070    435,933 
    Interest accrued   (16,861)   (9,804)   (7,057)
    Deferred fuel   199,619    69,825    129,794 
    Other working capital accounts   140,795    (96,149)   236,944 
  Provision for estimated losses and reserves   15,029    11,116    3,913 
  Changes in other regulatory assets   (75,674)   11,995    (87,669)
  Other   (140,333)   69,193    (209,526)
Net cash flow provided by operating activities   1,012,515    496,765    515,750 
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (664,178)   (271,829)   (392,349)
Allowance for equity funds used during construction   15,459    12,602    2,857 
Nuclear fuel purchases   (91,027)   (103,606)   12,579 
Proceeds from sale/leaseback of nuclear fuel   8,827    82,658    (73,831)
Payment for purchase of plant   (88,199)     (88,199)
Investment in nonutility properties     (1,476)   1,476 
Decrease (increase) in other investments   12,340    37,280    (24,940)
Purchase of other temporary investments     (1,437,725)   1,437,725 
Liquidation of other temporary investments     1,148,725    (1,148,725)
Proceeds from nuclear decommissioning trust fund sales   283,874    227,290    56,584 
Investment in nuclear decommissioning trust funds   (312,417)   (252,371)   (60,046)
Other regulatory investments   (23,448)   -     (23,448)
Net cash flow used in investing activities   (858,769)   (558,452)   (300,317)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   748,584    705,551    43,033 
  Preferred stock   73,354      73,354 
  Common stock and treasury stock   11,805    64,280    (52,475)
Retirement of long-term debt   (655,649)   (336,314)   (319,335)
Repurchase of common stock     (382,593)   382,593 
Redemption of preferred stock   (2,250)   (2,250)  
Changes in credit line borrowings - net   (40,000)   (75)   (39,925)
Dividends paid:            
  Common stock   (112,190)   (115,504)   3,314 
  Preferred stock   (7,661)   (6,409)   (1,252)
Net cash flow provided by (used in) financing activities   15,993    (73,314)   89,307 
             
Effect of exchange rates on cash and cash equivalents   (173)   44    (217)
             
Net increase (decrease) in cash and cash equivalents   169,566    (134,957)   304,523 
             
Cash and cash equivalents at beginning of period   582,820    619,786    (36,966)
             
Effect of the deconsolidation of Entergy New Orleans on cash and cash equivalents     (7,954)   7,954 
             
Cash and cash equivalents at end of period   $752,386    $476,875    $275,511 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $146,429    $122,258    $24,171 
    Income taxes   ($345,366)   $10,011    ($355,377)
             
             

 

Entergy Corporation 
 
Consolidated Cash Flow Statement 
Twelve Months Ended March 31, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
             
    2006   2005   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $947,045    $897,687    $49,358 
Adjustments to reconcile consolidated net income to net cash flow            
provided by operating activities:            
  Reserve for regulatory adjustments   (56,369)   52,527    (108,896)
  Other regulatory credits - net   (75,880)   (87,164)   11,284 
  Depreciation, amortization, and decommissioning   990,570    1,026,389    (35,819)
  Deferred income taxes and investment tax credits   550,674    244,996    305,678 
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   5,605    609,624    (604,019)
  Provision for asset impairments and restructuring charges   39,767    55,000    (15,233)
  Changes in working capital:            
    Receivables   (174,271)   (83,521)   (90,750)
    Fuel inventory   (108,459)   (5,783)   (102,676)
    Accounts payable   212,043    89,395    122,648 
    Taxes accrued   263,618    62,165    201,453 
    Interest accrued   8,076    (9,579)   17,655 
    Deferred fuel   (107,007)   221,287    (328,294)
    Other working capital accounts   191,291    (63,663)   254,954 
  Provision for estimated losses and reserves   209    (16,666)   16,875 
  Changes in other regulatory assets   (399,603)   46,696    (446,299)
  Other   (303,751)   (58,081)   (245,670)
Net cash flow provided by operating activities   1,983,558    2,981,309    (997,751)
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (1,850,435)   (1,388,115)   (462,320)
Allowance for equity funds used during construction   48,593    43,561    5,032 
Nuclear fuel purchases   (301,835)   (273,693)   (28,142)
Proceeds from sale/leaseback of nuclear fuel   110,572    141,570    (30,998)
Proceeds from sale of assets and businesses     53,452    (53,452)
Payment for purchase of plant   (250,274)     (250,274)
Investment in nonutility properties   1,476    (5,105)   6,581 
Decrease (increase) in other investments   (15,035)   436,090    (451,125)
Purchase of other temporary investments   (153,300)   (2,920,725)   2,767,425 
Liquidation of other temporary investments   630,250    2,510,575    (1,880,325)
Proceeds from nuclear decommissioning trust fund sales   1,000,837    585,557    415,280 
Investment in nuclear decommissioning trust funds   (1,099,870)   (679,550)   (420,320)
Other regulatory investments   (413,904)   (27,971)   (385,933)
Net cash flow used in investing activities   (2,292,925)   (1,524,354)   (768,571)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   4,345,603    4,178,935    166,668 
  Preferred stock   201,349      201,349 
  Common stock and treasury stock   53,593    139,435    (85,842)
Retirement of long-term debt   (3,008,541)   (4,256,041)   1,247,500 
Repurchase of common stock   (495,595)   (1,372,620)   877,025 
Redemption of preferred stock   (33,719)   (3,450)   (30,269)
Changes in credit line borrowings - net   (75)   (229)   154 
Dividends paid:            
  Common stock   (450,194)   (443,176)   (7,018)
  Preferred stock   (26,724)   (23,355)   (3,369)
Net cash flow provided by (used in) financing activities   585,697    (1,780,501)   2,366,198 
             
Effect of exchange rates on cash and cash equivalents   (819)   (132)   (687)
             
Net increase (decrease) in cash and cash equivalents   275,511    (323,678)   599,189 
             
Cash and cash equivalents at beginning of period   476,875    808,163    (331,288)
             
Effect of the deconsolidation of Entergy New Orleans on cash and cash equivalents     (7,610)   7,610 
             
Cash and cash equivalents at end of period   $752,386    $476,875    $275,511 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $485,516    $474,185    $11,331 
    Income taxes   ($239,305)   $48,527    ($287,832)