-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M0Nio/ATUl9eRyFPPLUMUTszANHKJtp6nrginslNVEkIELJNQbEGSTvc3xURvuse 7bWj3qs5bqrGytsacV+xCw== 0000065984-06-000228.txt : 20061031 0000065984-06-000228.hdr.sgml : 20061031 20061031070735 ACCESSION NUMBER: 0000065984-06-000228 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20061031 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061031 DATE AS OF CHANGE: 20061031 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ENTERGY CORP /DE/ CENTRAL INDEX KEY: 0000065984 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 721229752 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11299 FILM NUMBER: 061173817 BUSINESS ADDRESS: STREET 1: 639 LOYOLA AVE CITY: NEW ORLEANS STATE: LA ZIP: 70113 BUSINESS PHONE: 5045764000 MAIL ADDRESS: STREET 1: PO BOX 61000 CITY: NEW ORLEANS STATE: LA ZIP: 70161 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY CORP /FL/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: ENTERGY GSU HOLDINGS INC /DE/ DATE OF NAME CHANGE: 19940329 FORMER COMPANY: FORMER CONFORMED NAME: MIDDLE SOUTH UTILITIES INC DATE OF NAME CHANGE: 19890521 8-K 1 a06606.htm

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K
CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

 

Date of Report (Date earliest event reported) October 31, 2006

 

Commission
File Number

Registrant, State of Incorporation,
Address and Telephone Number

I.R.S. Employer
Identification No.

1-11299

ENTERGY CORPORATION
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 576-4000

72-1229752

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02. Results of Operations and Financial Condition.

On October 31, 2006, Entergy Corporation issued two public announcements, which are attached as exhibits 99.1 and 99.2 hereto (the "Earnings Releases") and incorporated herein by reference, announcing its results of operations and financial condition for the third quarter 2006. The information in Exhibits 99.1 and 99.2 is being furnished pursuant to this Item 2.02.

Item 7.01. Regulation FD Disclosure

On October 31, 2006, Entergy Corporation issued the Earnings Releases, which are attached as exhibits 99.1 and 99.2 hereto and incorporated herein by reference, announcing its results of operations and financial condition for the third quarter 2006. The information in Exhibits 99.1 and 99.2 is being furnished pursuant to this Item 7.01.

 

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.

Description

99.1

Release, dated October 31, 2006, issued by Entergy Corporation.

99.2

Release, dated October 31, 2006, issued by Entergy Corporation.

99.3

Statement on Uses and Usefulness of Non-GAAP Information

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Entergy Corporation

 

 

By: /s/ Nathan E. Langston
Nathan E. Langston
Senior Vice President and
Chief Accounting Officer

Dated: October 31, 2006

EX-99 2 a06606991.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

October 31, 2006

ENTERGY REPORTS THIRD QUARTER EARNINGS

NEW ORLEANS - Entergy Corporation reported third quarter 2006 earnings of $1.83 per share on an as-reported basis and $1.80 per share on an operational basis, as shown in Table 1 below. Entergy had indicated in its preliminary third quarter earnings guidance release of October 17, 2006 that it expected third quarter as-reported earnings of approximately $1.86 per share and operational earnings of approximately $1.83 per share. Entergy's final as-reported and operational earnings are lower due to a charge for a regulatory decision rendered by the Federal Energy Regulatory Commission on October 25, 2006. 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

Third Quarter and Year-to-Date 2006 vs. 2005

(Per share in U.S. $)

 

Third Quarter

Year-to-Date

 

2006

2005

Change

2006

2005

Change

As-Reported Earnings

1.83

1.65

0.18

4.08

3.75

0.33

Less Special Items

0.03

(0.03)

0.06

0.16

(0.05)

0.21

Operational Earnings

1.80

1.68

0.12

3.92

3.80

0.12

Weather Impact

0.06

0.06

-

0.06

0.05

0.01

Operational Earnings Highlights for Third Quarter 2006

  • Utility, Parent & Other had lower earnings due to higher operation and maintenance expense, higher interest expense, lower interest income, and a regulatory charge recorded during the quarter.
  • Entergy Nuclear earnings increased as a result of higher revenue due to higher energy pricing, the effect of the uprate completed at Vermont Yankee, fewer outages, and a reduction in its decommissioning liability.
  • Entergy's Non-Nuclear Wholesale Assets business had higher results due to reduced costs and the return to service of a plant previously idle for repair.

"Over the coming months, we expect to resolve uncertainties and financial stress created by the 2005 hurricanes, while demonstrating that even in the most adverse conditions it is still possible to create value for all stakeholders," said J. Wayne Leonard, Entergy's chairman and chief executive officer. "For customers that means affordable rates and a high level of service and for shareholders it includes superior performance in returning or investing capital."

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 10 
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

11
12
14
16

17
17
18
20
VII. Financial Statements 23

Highlights Included:

  • Entergy Mississippi received $81 million in CDBG funding providing direct relief to Mississippi customers, while the Louisiana Recovery Authority proposed $200 million in CDBG funding for Entergy New Orleans, Inc. to assist customers of that company
  • Entergy New Orleans, Inc. filed its Plan of Reorganization and reached agreement on a phased-in rate plan, major milestones in its path out of Chapter 11 Bankruptcy
  • Arkansas Nuclear One Unit 2 completed a record-setting breaker-to-breaker run of 527 days of continuous operation, a first for an Entergy-owned nuclear unit
  • Entergy Nuclear achieved a 99 percent capacity factor for third quarter 2006
  • Entergy was named to the Dow Jones Sustainability Index for the fifth year in a row and the only U.S. utility named to the Dow Jones Sustainability Index - - World this year

 

Entergy will host a teleconference to discuss this release at 10:00 a.m. CT on Tuesday, October 31, 2006, with access by telephone, 719-457-2621, confirmation code 4496801. 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 4496801. 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 third quarter and year-to-date 2006 versus 2005, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. Utility, Parent & Other recorded lower earnings due primarily to higher operation and maintenance expense, higher interest expense, lower interest income, and a regulatory charge in the quarter for a FERC decision rendered on October 25, 2006. Entergy Nuclear's earnings increased as a result of higher energy pricing, greater generation output, and a reduction in the decommissioning liability. Also, Entergy's Non-Nuclear Wholesale Assets business had higher results due to reduced costs and the return to service of a plant previously idle for repair.

Table 2: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
(see appendix G for definitions of certain measures)

Third Quarter and Year-to-Date 2006 vs. 2005

(Per share in U.S. $)

 

Third Quarter

Year-to-Date

 

2006

2005

Change

2006

2005

Change

As-Reported

Utility, Parent & Other

1.35

1.35

-

2.89

2.81

0.08

Entergy Nuclear

0.50

0.33

0.17

1.19

0.95

0.24

Non-Nuclear Wholesale Assets

(0.02)

(0.03)

0.01

-

(0.01)

0.01

  Consolidated As-Reported Earnings

1.83

1.65

0.18

4.08

3.75

0.33

Less Special Items

Utility, Parent & Other

0.03

(0.03)

0.06

0.16

(0.05)

0.21

Entergy Nuclear

-

-

-

-

-

-

Non-Nuclear Wholesale Assets

-

-

-

-

-

-

  Consolidated Special Items

0.03

(0.03)

0.06

0.16

(0.05)

0.21

Operational

Utility, Parent & Other

1.32

1.38

(0.06)

2.73

2.86

(0.13)

Entergy Nuclear

0.50

0.33

0.17

1.19

0.95

0.24

Non-Nuclear Wholesale Assets

(0.02)

(0.03)

0.01

-

(0.01)

0.01

  Consolidated Operational Earnings

1.80

1.68

0.12

3.92

3.80

0.12

Weather Impact

0.06

0.06

-

0.06

0.05

0.01

Detailed earnings variance analyses are included in appendices B-1 and B-2 to this release. In addition, appendix B-3 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 third quarter 2006 was $777 million compared to $334 million in third quarter 2005. The increase was due primarily to:

  • Collections of more than $350 million of deferred fuel balances, lower non-capital storm spending and lower income tax payments at Utility, Parent & Other, partially offset by pension funding payments.
  • Higher net revenue of approximately $50 million due to higher prices and incremental generation at Entergy Nuclear, partially offset by higher income tax payments.

 

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

Table 3: Consolidated Net Cash Flow Provided by Operating Activities

Third Quarter and Year-to-Date 2006 vs. 2005

(U.S. $ in millions)

Third Quarter

Year-to-Date

2006

2005

Change

2006

2005

Change

Utility, Parent & Other

599

189

410

1,691

740

951

Entergy Nuclear

175

159

16

648

394

254

Non-Nuclear Wholesale Assets

3

(14)

17

(82)

(27)

(55)

  Total Net Cash Flow Provided by Operating Activities

777

334

443

2,257

1,107

1,150

 

II. Utility, Parent & Other Results

In third quarter 2006, Utility, Parent & Other had earnings of $1.35 per share on an as-reported basis and $1.32 per share on an operational basis compared to $1.35 per share on an as-reported basis and $1.38 on an operational basis in third quarter 2005. As-reported 2006 earnings reflect $0.03 per share in special items and primarily reflect earnings at Entergy New Orleans, Inc. (ENOI) as results from the discontinued competitive retail business in Texas were immaterial. The third quarter 2005 special item of $(0.03) reflected the operating loss from the discontinued competitive retail business in Texas. Entergy sold its customer base in the retail business in April 2006.

Earnings for Utility, Parent & Other in third quarter 2006, excluding ENOI, primarily reflect higher operation and maintenance expense, and higher interest expense due to debt incurred to pay for storm restoration costs for Hurricanes Katrina and Rita, and lower interest income. In addition, a regulatory charge in connection with a Federal Energy Regulatory Commission decision, issued subsequent to the end of the quarter, also contributed to lower earnings in the current period. Partially offsetting these factors were higher revenues from sales growth and the effects of constructive rate actions over the past year, and lower income tax expense.

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 third quarter 2006, on a weather-adjusted basis, were up 1 percent compared to third quarter 2005.
    • Commercial and governmental sales, on a weather-adjusted basis, were up 2 percent.
    • Industrial sales experienced an increase of 4 percent in third quarter 2006 compared to the same period a year ago.

The increases in the residential segment and the commercial and governmental segment reflect growth primarily at Entergy Louisiana and Entergy Mississippi. Sales for third quarter 2006 in these jurisdictions reflect some recovery from the effect of storms which reduced sales in third quarter of 2005 although the recovery at Entergy Louisiana has been slower than expected. The quarter over quarter increase in the industrial sector also reflects some rebound from the effect of storms in third quarter 2005. However, the recovery in the industrial segment has also been slower than expected and is being hampered by high energy prices, particularly in the chemical sector, as well as lingering storm outages and a mild winter that affected the pipeline sector.

ENOI results for third 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 third quarter 2005 Utility, Parent & Other results include ENOI on both as-reported and operational bases. Also, ENOI is de-consolidated for both third quarter 2006 and third quarter 2005 reporting purposes as explained in Appendix A of this release. Accordingly, revenue and expense explanations provided above exclude the revenues and expenses of ENOI.

ENOI results for third quarter 2006 reflect earnings of $0.03 per share. In third quarter 2005, ENOI also earned $0.03 per share. Third quarter 2005 results reflect a normal operating environment for ENOI for nearly two months of the quarter, prior to Hurricane Katrina. Subsequent to the hurricane, ENOI experienced significant reductions in operating revenues due to customer losses. Third quarter 2006 results reflect the ongoing effects of the hurricane as well as certain actions taken by ENOI specific to its continuing effort to stabilize the company's financial condition. 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. Current results also reflect lower interest expense due to a reduction in interest accrued on first mortgage bonds. Interest had not been accrued for a year as a result of an agreement among bondholders and ENOI in the Chapter 11 bankruptcy proceeding. ENOI resumed accruing interest late in third quarter 2006.

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

Table 4: Utility Operational Performance Measures excluding Entergy New Orleans

Third Quarter and Year-to-Date 2006 vs. 2005 (see appendix G for definitions of measures)

 

Third Quarter

Year-to-Date

 

2006

2005

% Change

% Weather Adjusted

2006

2005

% Change

% Weather Adjusted

GWh billed

  Residential

10,772

10,630

1.3%

1.1%

24,769

24,358

1.7%

1.7%

  Commercial and governmental

7,920

7,725

2.5%

2.4%

20,273

19,691

3.0%

2.3%

  Industrial

10,154

9,736

4.3%

4.3%

28,768

28,837

-0.2%

-0.2%

  Total Retail Sales

28,846

28,091

2.7%

2.6%

73,810

72,886

1.3%

1.1%

  Wholesale

2,894

3,184

-9.1%

8,471

8,811

-3.9%

  Total Sales

31,740

31,275

1.5%

82,281

81,697

0.7%

O&M expense

$13.87

$11.05

25.6%

$15.08

$13.83

9.1%

Number of retail customers (a)

  Residential

2,141,492

2,085,413

2.7%

  Commercial and governmental

318,919

314,347

1.5%

  Industrial

47,800

46,591

2.6%

(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 projections.

Entergy Nuclear's sold forward position, including projections for the pending Palisades acquisition currently estimated to close in second quarter 2007, is 90%, 95%, and 83% of planned generation at average prices per megawatt-hour of $41, $49 and $53, for the remainder of 2006, 2007 and 2008, respectively. Non-Nuclear Wholesale Assets has contracted for 39%, 29% and 29% of its planned energy and capacity revenues at average prices per megawatt-hour of $31, $28 and $27, for the same periods.

 

Table 5: Competitive Businesses Capacity and Generation Projected Sold Forward

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

 

Fourth Quarter 2006

2007

2008

2009

2010

Entergy Nuclear

Energy

Planned TWh of generation (including pending acquisition)

9

38

41

41

41

Percent of planned generation sold forward (b)

  Unit-contingent

34%

36%

28%

24%

10%

  Unit-contingent with availability guarantees

52%

42%

34%

17%

11%

  Firm liquidated damages

4%

7%

4%

0%

0%

  Palisades assuming 2Q07 closing

0%

10%

17%

15%

16%

  Total

90%

95%

83%

56%

37%

Average contract price per MWh (c) (including pending acquisition)

$41

$49

$53

$56

$50

Average contract price per MWh (c) (excluding pending acquisition)

$41

$49

$55

$60

$54

Capacity

Planned net MW in operation (average including pending acquisition)

4,200

4,666

4,998

4,998

4,998

Percent of capacity sold forward

  Bundled capacity and energy contracts

13%

11%

11%

11%

11%

  Capacity contracts

82%

64%

35%

26%

9%

  Palisades assuming 2Q07 closing

0%

10%

16%

16%

16%

  Total

95%

85%

62%

53%

36%

Average capacity contract price per kW per month

$1.1

$1.6

$1.2

$1.3

$1.7

Blended Capacity and Energy Recap (based on revenues)

Percent of planned energy and capacity sold forward

87%

92%

77%

51%

30%

Average contract revenue per MWh (c) (including pending acquisition)

$42

$50

$53

$57

$51

Average contract revenue per MWh (c) (excluding pending acquisition)

$42

$51

$56

$61

$55

Non-Nuclear Wholesale Assets

Capacity

Net MW in operation

1,578

1,578

1,578

1,578

1,578

Percent of capacity sold forward

20%

20%

20%

11%

8%

Energy

Planned TWh of generation

1

3

3

4

4

Percent of planned generation sold forward

  Unit-contingent

8%

7%

7%

6%

6%

  Unit-contingent with availability guarantees

33%

37%

38%

29%

30%

  Firm liquidated damages

0%

0%

0%

0%

0%

  Total

41%

44%

45%

35%

36%

Blended Capacity and Energy Recap (based on revenues)

Percent of planned energy and capacity sold forward

39%

29%

29%

18%

17%

Average contract revenue per MWh

$31

$28

$27

$21

$20

 

  1. A portion of EN's total planned generation sold forward is associated with the Vermont Yankee contract for which pricing may be adjusted.
  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 earned $0.50 per share on both as-reported and operational bases in third quarter 2006, compared to $0.33 in third quarter 2005. The improved results in third quarter 2006 came from a combination of higher pricing, increased generation available due to the Vermont Yankee uprate and fewer outages, and the effect of a reduction in the decommissioning liability. Partially offsetting these contributions was higher operation and maintenance expense due to higher benefits and insurance expense.

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

Table 6: Entergy Nuclear Operational Performance Measures

Third Quarter and Year-to-Date 2006 vs. 2005 (see appendix G for definitions of measures)

 

Third Quarter

Year-to-Date

2006

2005

% Change

2006

2005

% Change

Net MW in operation

4,200

4,105

2%

4,200

4,105

2%

Average realized price per MWh

$45.35

$42.58

7%

$44.58

$42.26

5%

Production cost per MWh

$19.65

$20.14

-2%

$19.50

$19.36

1%

Non-fuel O&M expense per MWh

$20.61

$20.32

1%

$20.62

$20.25

2%

Generation in GWh

9,028

8,474

7%

26,018

24,896

5%

Capacity factor

99%

95%

4%

95%

93%

2%

Refueling outage days:

  Indian Point 2

-

-

31

-

  Indian Point 3

-

-

-

26

  Pilgrim

-

-

-

25

Non-Nuclear Wholesale Assets

Entergy's Non-Nuclear Wholesale Assets business recorded a loss of $(0.02) per share on both as-reported and operational bases in third quarter 2006. As-reported and operational results in third quarter 2005 were a loss of $(0.03) per share. The improved results were primarily attributable to reduced costs and the return to service of the Harrison County unit which had been idle for repairs.

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 through the process of gaining approval for its Plan of Reorganization filed on October 23, 2006 in connection with its Chapter 11 Bankruptcy proceeding. During 2006, actual results for ENOI are being separately identified as a special item for earnings release purposes.

Entergy's 2006 guidance was initially established in January 2006 based on a number of assumptions as detailed below. Among them was normal weather for the Utility, and a then-current average spot electricity price of $83/MWh for the unsold portion of Entergy Nuclear's 2006 generation. During third quarter, weather was warmer than normal and spot electricity prices averaged $60/MWh. Published market prices for the remainder of 2006 averaged $63/MWh at the end of October. These and other factors can exceed or fall short of guidance mid-point assumptions but when combined, continue to support Entergy's overall guidance range.

Guidance ranges for 2006 are based on the following key assumptions established in January 2006:

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

  • End of year fully diluted shares outstanding of approximately 213 million

The above assumptions assume no regulatory disallowances are ordered by retail regulators for the estimated $1.5 billion storm restoration costs ($0.8 billion capital, $0.7 billion regulatory assets). Any such disallowances would be shown as special items assuming such disallowances are not appealed to the courts or in the case of appeals, are later disallowed by the courts.

Earnings guidance details for 2006 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. To simplify the presentation, 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. $) - Prepared January 2006



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

 

Entergy is initiating 2007 earnings guidance in the range of $5.40 to $5.70 per share on both an as-reported and operational bases. As is the case for 2006, earnings guidance for 2007 excludes ENOI given the uncertainty that remains for this business as it works through its Chapter 11 Bankruptcy proceeding. Also consistent with 2006 earnings guidance, year-over-year changes are shown as point estimates and are applied to 2006 guidance mid-point estimates to compute the 2007 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. 2007 earnings guidance is detailed in Table 8 below. Key assumptions supporting 2007 earnings guidance are as follows:

Utility, Parent & Other

  • Normal weather
  • Retail sales growth of just under 2%
  • Increased revenue associated with storm and non-storm rate requests, partially offset by declining wholesale revenues, among others
  • Increased non-fuel operation and maintenance expense, primarily due to effects of wage and other inflation and increased insurance premiums
  • Increased interest expense primarily from securitization debt and Palisades financing

Entergy Nuclear

  • Incremental earnings of $0.20 total for Palisades acquisition, assuming second quarter close; $0.13 associated with operations; $0.07 per share associated with the application of GAAP accounting for the PPA (details reflected in following assumptions)
  • 38 TWh of total output, reflecting an approximate 92% capacity factor, including 30 day refueling outages at Indian Point 3, Pilgrim and Vermont Yankee, all in Spring 2007, and the initial refueling outage at Palisades, in Fall 2007
  • 95% energy sold under existing contracts; 5% sold into the spot market
  • $49/MWh average energy contract price; $69/MWh average unsold energy price based on published market prices in October 2006
  • 85% capacity sold under existing contracts; 15% sold in spot market
  • $1.60 per kW per month average capacity-only contract price; $3.00 per kW per month unsold capacity based on published market prices in October 2006
  • $21.25/MWh non-fuel operation and maintenance expense reflecting wag e and other inflation; $20.50/MWh production cost

Non-Nuclear Wholesale Assets

  • Increased year over year losses due to fewer anticipated opportunities to monetize assets

Special Items

  • Absence of 2006 receipt of additional proceeds from the 2004 sale of EKLP and recognition of gain contingency
  • Results from discontinued competitive retail business (2006) and ENOI (2006 and 2007) will be reflected when actual results are reported

Share Repurchase Program

  • End of year fully diluted shares outstanding of approximately 206 million

The above assumptions assume no regulatory disallowances are ordered by retail regulators for the estimated $1.5 billion storm restoration costs ($0.8 billion capital, $0.7 billion regulatory assets). Any such disallowances would be shown as special items assuming such disallowances are not appealed to the courts or in the case of appeals, are later disallowed by the courts.

 

Table 8: 2007 Earnings Per Share Guidance excluding Entergy New Orleans

(Per share in U.S. $) - Prepared October 2006



Segment



Description of Drivers

2006 Guidance Midpoint

Expected Change

2007
Guidance
Midpoint

2007 Guidance Range

Utility, Parent & Other

2006 Operational Earnings per Share

3.05

Adjustment to normalize weather

(0.06)

Increased revenue due to sales growth and rate actions

0.30

Increased O&M expense

(0.10)

Increased depreciation expense

(0.10)

Increased interest expense

(0.05)

Accretion

0.07

Other

(0.06)

Subtotal

3.05

0.00

3.05

Entergy Nuclear

2006 Operational Earnings per Share

1.60

Higher contract and market energy pricing

0.70

Higher contract and market capacity pricing

0.10

Increased generation from plant acquisition, net of more outages

0.40

Increased O&M expense

(0.25)

Accretion

0.06

Other

(0.06)

Subtotal

1.60

0.95

2.55

Non-Nuclear Wholesale Assets

2006 Operational Earnings per Share

0.00

Increased losses from Non-Nuclear Wholesale Assets

(0.05)

Subtotal

0.00

(0.05)

(0.05)

Consolidated Operational

2007 Operational Earnings per Share

4.65

0.90

5.55

5.40 - 5.70

Consolidated As-Reported

2006 As Reported Earnings per Share

4.78 - 5.08

Changes detailed above

0.90

Special items:

2006 Gain on sale of Entergy-Koch, LP

(0.28)

2007 As-Reported Earnings per Share

4.78 - 5.08

0.62

5.55

5.40 - 5.70

Earnings guidance for 2007 should be considered in association with earnings sensitivities as shown in Table 9. These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers. Utility sales are expected to be the most significant driver of results in 2007 for Utility, Parent & Other due to normal growth in customer usage. At Entergy Nuclear, energy prices are expected to be the most significant driver of results in 2007, given the size of EN's unsold position. Estimated annual impacts shown in the Table 9 are intended to be indicative rather than precise guidance.

Table 9: 2007 Earnings Sensitivities excluding Entergy New Orleans

(Per share in U.S. $)


Variable


2007 Guidance Assumption


Description of Change

Estimated Annual Impact (d)

Utility, Parent & Other

Sales growth
  Residential
  Commercial/Governmental
  Industrial
  Total


Just under 2% total sales growth


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 27,000 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 average debt

$100M change in debt

- / + 0.02

Entergy Nuclear

Capacity factor

92% capacity factor

1% change in capacity factor

- / + 0.05

Energy price

5% energy unsold at $69/MWh in 2007

$10/MWh change for unsold energy

- / + 0.06

Portion of energy sold is with options in 2007

Market prices exceed option exercise prices

n/a / Up to 0.07

Non-fuel operation and maintenance expense

$21.25/MWh non-fuel operation and maintenance expense

$1 change per MWh

- / + 0.11

Outage (lost revenue only)

92% capacity factor, including refueling outages for three northeast units and at Palisades

1,000 MW plant for 10 days at average portfolio energy price of $49/MWh for sold and $69/MWh for unsold volumes in 2007

- 0.03 / n/a

  1. Based on 2006 average fully diluted shares of approximately 213 million. Entergy Nuclear assumes Palisades acquisition closes in second quarter 2007.

V. Forward-looking Financial Data and Aspirations

Entergy continues to aspire to deliver superior value to its owners as measured by total shareholder return. Entergy believes top quartile total shareholder returns are achieved by growing earnings, improving returns on invested capital, maintaining investment grade credit quality and deploying capital in a disciplined manner, whether for new investments, share repurchases, dividends or debt retirement.

Table 10 provides details on Entergy's projected cash available for capital redeployment for the period 2007 through 2009 excluding Entergy New Orleans. Entergy expects to have $3.2 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. Cash flow from operations includes storm cost recovery anticipated from a combination of insurance, rate relief, and securitization; these amounts are applied consistent with regulatory filings and other agreements reached with governmental agencies under which benefits inure to ratepayers. Sources of cash also include debt that Entergy believes it could issue in association with new investments while maintaining credit quality consistent with BBB credit rating. 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 re flect current estimates of storm restoration spending.

Table 10: Projected Cash Available for Capital Redeployment excluding Entergy New Orleans
2007 through 2009 - Reconciliation of GAAP to Non-GAAP Measures
(see appendix G for definitions of measures)

($ in billions)

2007-2009

Net cash flow provided by operating activities

8.3

Less:

  Planned capital expenditures

(5.2)

  Preferred dividends

(0.1)

  Other investing cash flows

(0.8)

Subtotal

2.2

Common dividends

(1.6)

Capital structure changes including net share repurchases and new debt (net of maturities)

2.6

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

3.2

Appendix E provides additional details on planned capital expenditures, 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 and year to date periods.
  • 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 measure s used in this release.

 

Appendix A provides information on the status of the bankruptcy process at Entergy New Orleans, Inc.

Appendix A: Entergy New Orleans, Inc. Bankruptcy

Bankruptcy Filing

To 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.

Plan of Reorganization

ENOI filed a Plan of Reorganization (POR) with the bankruptcy court on October 23, 2006 and believes the filing is a significant step forward for all parties involved in the bankruptcy proceeding with a plan that is workable, fair and in the public interest. The POR provides full compensation for all of ENOI's creditors and allows ENOI to emerge from Chapter 11 bankruptcy assuming the plan is supported by creditors and the various conditions included in the plan, as detailed below, are met. For more information on documents filed in this proceeding including the POR, go to www.entergy.com/investor_relations/enoi.aspx.

Conditions precedent that must be satisfied for the POR to become effective include:

  • A final Confirmation Order from the bankruptcy court approving the POR
  • City Council of New Orleans (CCNO) resolution(s) satisfactory to ENOI regarding 06 Formula Rate Plan Gas and Electric filings and Storm Cost Recovery and Storm Reserve riders
  • Receipt by ENOI of insurance proceeds of at least $250 million or assurance of such receipt, or alternatively, assurance that regulatory mechanisms will be put in place to cover any shortfall
  • Receipt by ENOI of $200 million in Community Development Block Grant (CDBG) funding and assurance that at a minimum an additional $200 million in CDBG funding will be available for future gas system rebuild or assurance from CCNO that an appropriate rate mechanism is in place to allow ENOI to recover the costs thereof
  • No Material Adverse Change shall have occurred from and after Confirmation date of the POR
  • ENOI receives final order from Federal Energy Regulatory Commission authorizing issuance of short-term debt securities under credit agreements, Entergy Money Pool, and unilateral arrangements with Entergy Corporation

Community Development Block Grant Funding

ENOI applied to the Louisiana Recovery Authority (LRA) for funding from CDBG resources made available to Louisiana. On October 12, 2006, the LRA passed a resolution approving funding of $200 million for ENOI. Additional approvals are needed from the full board of the LRA, the governor, the state legislature of Louisiana, and HUD. The approval process is expected to take several months.

ENOI Rate Plan

On October 27, 2006, the City Council of New Orleans approved a settlement agreement with ENOI that calls for a phased-in rate increase and the creation of a $75M storm reserve that positions ENOI to pay for future hurricane damage. Additional information is included in the Regulatory Summary Table in Appendix C.

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 affected 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 conso lidated balance sheet and cash flow statement have been revised to reflect the effects 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 third quarter and year-to-date 2006 vs. 2005 earnings variance analyses for "Utility, Parent & Other," "Competitive Businesses," and "Consolidated."

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

Third 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

1.35

0.30

1.65

Net revenue

0.31

(e)

0.11

(f)

0.42

Other income (deductions)

0.03

0.11

(g)

0.14

Income taxes - other

0.08

(h)

0.02

0.10

Retail business discontinued operations

0.03

-

0.03

Depreciation/amortization expense

(0.02)

(0.02)

(0.04)

Interest and dividend income

(0.03)

(0.01)

(0.04)

Interest expense and other charges

(0.05)

(i)

0.01

(0.04)

Taxes other than income taxes

(0.10)

(j)

-

(0.10)

Other operation & maintenance expense

(0.25)

(k)

(0.04)

(0.29)

2006 earnings

1.35

0.48

1.83

Appendix B-2: As-Reported Earnings Per Share Variance Analysis

Year-to-Date 2006 vs. 2005

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

column, most to least favorable)

Utility,

Competitive

Parent & Other

Businesses

Consolidated

2005 earnings

2.81

0.94

3.75

Net revenue

0.38

(e)

0.35

(f)

0.73

Income taxes - other

0.10

(h)

0.02

0.12

Retail business discontinued operations

0.10

(l)

-

0.10

Share repurchase effect

0.05

(m)

0.02

0.07

Other income (deductions)

0.05

(n)

0.01

0.06

Decommissioning expense

0.01

(0.01)

-

Interest and dividend income

0.01

(0.01)

-

Nuclear refueling outage expense

(0.02)

-

(0.02)

Preferred dividend requirements

(0.02)

-

(0.02)

Depreciation/amortization expense

(0.03)

(0.02)

(0.05)

Taxes other than income taxes

(0.11)

(j)

(0.01)

(0.12)

Interest expense and other charges

(0.18)

(i)

0.04

(0.14)

Other operation & maintenance expense

(0.26)

(k)

(0.14)

(o)

(0.40)

2006 earnings

2.89

1.19

4.08

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

Third Quarter

Year-to-Date

Sales growth/pricing

0.22

Sales growth/pricing

0.39

Weather

-

Weather

0.01

Other

0.09

Other

(0.02)

Total

0.31

Total

0.38

  1. Net revenue increased in third quarter 2006 and on a year-to-date basis compared to those same periods a year ago due primarily to sales growth, the effect of constructive rate actions, and the collection of franchise taxes consistent with the revised regulatory treatment for that item at Entergy Arkansas. In addition, higher unbilled revenue in third quarter 2006 compared to 2005 also contributed to the increase in net revenue.
  2. Net revenue increased in both quarter and year-to-date periods due primarily to higher revenues at Entergy Nuclear due to higher pricing and the effect of higher generation due to the Vermont Yankee uprate and fewer outages. In addition, the planned monetization of Entergy's interest in a power development project increased revenues in the current year-to-date period compared to year-to-date 2005.
  3. Other income (deductions) increased due primarily to a reduction in the decommissioning liability at Entergy Nuclear to reflect changes in assumptions on probability of life extension.
  4. Income taxes-other decreased in the quarter due primarily to a benefit recorded at Entergy Arkansas for pension fund payments. The year-to-date period included this benefit and the flow through tax benefit associated with steam generator removal costs at Entergy Arkansas .
  5. Interest expense and other charges increased in both the quarter and year-to-date periods due primarily to higher borrowings under credit lines and long-term debt primarily in connection with financing of significant 2005 storm restoration costs.
  6. Taxes other than income taxes increased in both the quarter and year-to-date periods due primarily to a regulatory requirement that EAI franchise tax collections be recorded in revenue with a corresponding increase in taxes other than income taxes.
  7. Other operation and maintenance expense increased in both the quarter and year-to-date periods due primarily to resources being deployed to storm restoration rather than routine operation and maintenance expense activities in the quarter and year-to-date periods of 2005, the absence in the current period of proceeds received in third quarter 2005 related to a l ow-level radioactive waste services settlement, higher labor and benefit expenses in the current period, increased costs associated with the addition of the Perryville and Attala plants, and higher storm reserves, as well as higher legal and regulatory costs and higher insurance expense.
  8. Reflects results of retail business operations including the gain on the sale of this business in second quarter 2006.
  9. Share repurchase effect reflects the impact of Entergy's repurchase activity.
  10. Reflects reclassification of certain reserves, which is offset in expense, and higher allowance for funds used during construction.
  11. Other operation and maintenance expense increased due to higher benefits and insurance expenses at Entergy Nuclear as well as increased s pending at the Non-Nuclear Wholesale Assets business which is offset in revenue.

 

Appendix B-3 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-3: Special Items (shown as positive / (negative) impact on earnings)

Third Quarter and Year-to-Date 2006 vs. 2005

(Per share in U.S. $)

 

Third Quarter

Year-to-Date

 

2006

2005

Change

2006

2005

Change

Utility, Parent & Other

  ENOI results (p)

0.03

-

0.03

0.11

-

0.11

  Retail business discontinued operations

-

(0.03)

0.03

(0.03)

(0.05)

0.02

  Gain on sale - retail business

-

-

-

0.08

-

0.08

    Total Utility, Parent and Other

0.03

(0.03)

0.06

0.16

(0.05)

0.21

Competitive Businesses

  Entergy Nuclear

-

-

-

-

-

-

  Non-Nuclear Wholesale Assets

-

-

-

-

-

-

     Total Competitive Businesses

-

-

-

-

-

-

Total Special Items

0.03

(0.03)

0.06

0.16

(0.05)

0.21

(U.S. $ in millions)

2006

2005

Change

2006

2005

Change

Utility, Parent & Other

  ENOI results (p)

7.3

-

7.3

23.7

-

23.7

  Retail business discontinued operations

(1.0)

(7.1)

6.1

(7.3)

(11.3)

4.0

  Gain on sale - retail business

-

-

-

17.1

-

17.1

     Total Utility, Parent and Other

6.3

(7.1)

13.4

33.5

(11.3)

44.8

Competitive Businesses

  Entergy Nuclear

-

-

-

-

-

-

  Non-Nuclear Wholesale Assets

-

-

-

-

-

-

     Total Competitive Businesses

-

-

-

-

-

-

Total Special Items

6.3

(7.1)

13.4

33.5

(11.3)

44.8

             

(p) ENOI results for the quarterly and year-to-date periods of 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: EAI filed a rate case on August 15, 2006 requesting $150 million based on a June 30, 2006 test year using an 11.25% ROE. A hearing is scheduled for April 17, 2007, with an effective date for new rates of June 2007. Additional testimony was filed by APSC Staff, intervenors and EAI in the Energy Cost Recovery Rider (ECR) proceeding, and ECR retention was recommended. A hearing on the Rider ECR investigation was conducted on October 12, 2006.
Background: EAI's base rates and the ECR have been in effect since 1998.  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.

     

Entergy Gulf States - TX

10.95%

Recent activity: None.
Background: EGSI-TX has operated under a base rate freeze since 1999. Legislation subsequently enacted in June 2005 extends the base rate freeze to mid 2008 but also allows EGSI-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. In June 2006, the PUCT approved a settlement in the Transition to Competition Cost recovery case, allowing EGSI-TX to recover $14.5 million per year in TTC costs over a 15-year period. EGSI-TX implemented interim rates on March 1.
Storm Cost Recovery: EGSI-TX initiated its storm recovery case on July 5, 2006 indicating $393 million of Hurricane Rita costs incurred through March 31, 2006. Pursuant to securitization legislation, the PUCT has 150 days (December 4, 2006) to issue an order determining the amount of hurricane restoration costs eligible for recovery and securitization. Staff and intervenors filed testimony in the storm recovery case beginning October 9, 2006. Staff testimony does not include any disallowances and disputes issues raised in intervenor testimony. A hearing is set for November 1-3, 2006.

     

Entergy Gulf States - LA

9.90% - 11.40%

Recent activity: In May 2006, EGSI-LA made its formula rate plan (FRP) filing for the 2005 test year. The evaluation report shows an Earned Rate of Return of 11.10% which is within the allowed bandwidth. Pursuant to the Approved Capacity Additions section of the FRP rider, the filing reflects a required annual revenue increase of $7.1 million to recover Commission approved deferred and ongoing capacity costs. On August 29, 2006, rates changes were implemented subject to refund, while FRP resolution is pursued.
Background: In March 2005, the LPSC approved a Global Settlement which established an 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.
Storm Cost Recovery: In May 2006, EGSI-LA completed the $6 million interim recovery of storm costs through the fuel adjustment clause pursuant to the LPSC order. Beginning in September, interim recovery shifted into the Formula Rate Plan at the rate of $0.85 million per month. Interim recovery will continue until a final decision is granted on EGSI-LA's Phase II filing. On July 31, 2006, EGSI-LA made its Phase II storm filing for recovery of $200 million in storm related costs incurred through May 31, 2006. EGSI-LA also seeks to build a storm reserve in the amount of $81 million in the filing. Hearings are set for March 12-23, 2007, with a decision expected in 2nd Quarter 2007. EGSI-LA intends to pursue securitization options. Securitization has been authorized by legislation signed into law by the Governor in May 2006.

     

Entergy Louisiana

9.45% - 11.05%

Recent activity: In May 2006, ELL made its formula rate plan (FRP) filing for the 2005 test year. The evaluation report shows an Earned Rate of Return of 9.45% which is within the allowed bandwidth. Pursuant to the Approved Capacity Additions section of the FRP rider, the filing reflects a required annual revenue increase of $121 million to recover Commission approved deferred and ongoing capacity costs. ELL has proposed to amortize deferred capacity costs over a three-year period which creates a $51 million annual revenue requirement. Ongoing annual capacity costs total approximately $70 million. On September 28, 2006, ELL implemented, subject to refund while FRP resolution is pursued, an amended $142.9 million annual FRP increase consisting of $118.7 million for deferred and ongoing capacity costs and $24.2 million for interim storm costs recovery. This increase reflects certain adjustments proposed by the LPSC Staff with which ELL agrees.
Background: In May 2005, the LPSC approved a settlement reestablishing the Company's 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.
Storm Cost Recovery: In April 2006, ELL completed the $14 million interim recovery of storm costs through the fuel adjustment clause pursuant to the LPSC order. Beginning in September, interim recovery shifted into the Formula Rate Plan at the rate of $2 million per month. Interim recovery will continue until a final decision is granted on ELL's Phase II filing. On July 31, 2006, ELL made its Phase II storm filing for recovery of $467 million in storm related costs incurred through May 31, 2006. ELL also seeks to build a storm reserve in the amount of $132 million in the filing. Hearings are set for March 12-23, 2007 with a decision expected in 2nd Quarter 2007. ELL intends to pursue securitization options. Securitization has been authorized by legislation signed into law by the Governor in May 2006.

Entergy Mississippi

9.74% - 12.44%

Recent activity: In April 2006, EMI submitted its 2005 evaluation report that reflected an Earned Rate of Return of 9.35%, resulting in a revenue deficiency. On June 30, 2006, EMI and the Public Utilities Staff filed a Joint Stipulation with the MPSC that resulted in a rate increase of approximately $2 million. The MPSC approved the Joint Stipulation on August 1, 2006 which was effective with August 2006 billings. On August 21, 2006, EMI filed notice of intent to increase several fees (connect, reconnect, late payment and return check). On October 9, 2006 the MPSC approved EMI's filing to revise the Power Management Rider Schedule to extend beyond 2006 recovery of EMI's Attala costs, effective for bills on/after January 1, 2007.
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,

Appendix C: Regulatory Summary Table (continued)

Company/ Proceeding

Authorized ROE

Pending Cases/Events

Retail Regulation

Entergy Mississippi (continued)

Background (continued): the MPSC approved purchase of the Attala facility and authorized interim recovery through December 2006.
Storm Cost Recovery: On June 28, 2006, the MPSC issued an Order approving $89 million of the EMI's Hurricane Katrina storm restoration costs incurred through March 31, 2006 and certified that amount as eligible for CDBG funding and securitization. On October 27, 2006, the MPSC concluded the securitization proceeding, authorizing $48M for securitization, including $40M for a storm reserve and net of $81 million for CDBG funding that EMI received on October 30, 2006.

Entergy New Orleans

10.75%

Recent activity: On October 27, 2006, the City Council of New Orleans (CCNO) approved a settlement agreement with ENOI that calls for a phased-in rate increase to ensure the company's ability to focus on restoration of the gas and electric systems, create a $75M storm reserve that positions ENOI to pay for future hurricane damage, and continues its focus on customer service and reliability improvements post Katrina. When fully implemented by January 1, 2008, electric base rates will increase by $3.9 million and gas base rates by $11.0 million. Grand Gulf fuel adjustment clause recovery is also retained. Absent extraordinary circumstances, there will be no further base rate adjustments until April 2009.
Background:  In September 2005, the CCNO 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 September 2005 order also temporarily suspended the Generation Performance-Based Rate (G-PBR) due to effects from Hurricane Katrina. The October 27 agreement supercedes ENOI's FRP and G-PBR but allows ENO to seek reinstatement of an appropriate FRP following the resetting of rates in 2009.
Storm Cost Recovery: The October 27 agreement established storm reserve riders for electric and gas and a process for storm cost recovery. The anticipated receipt of $200 million CDBG funding allocated by the LRA on October 12, 2006 is to be applied to storm costs; any storm costs in excess of the $200 million and insurance receipts will be addressed in ENO's July 2008 rate filing. Storm reserve rider builds a $75 million reserve for future storm costs over a 10 year period.

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: None
Background:
The system agreement case 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 on 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 AEEC 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. A compliance filing to implement the FERC decision in this case was fi led 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. On May 31, 2006, the APSC, LPSC, AEEC, Arkansas Attorney General filed comments or protests of Entergy's Compliance filing, and on June 7, 2006 the LPSC filed Request for Summary Disposition on issues relating to the timing of payments/receipts between the utility operating subsidiaries. Entergy has responded to the comments or protests to its Compliance filing and has urged FERC to reject the LPSC's request for summary judgment.

     

Independent Coordinator of Transmission
(ICT)

 

NA

 

Recent activity: On September 22, 2006 FERC denied various requests for rehearing of its previous Independent Coordinator of Transmission (ICT) Orders and on October 18, 2006 approved Entergy's Compliance filing, with modifications. On October 23, 2006 Entergy filed a request for clarification on two limited issues related to the FERC's September Order on Rehearing. The FERC has directed that SPP be installed as the ICT by November 17, 2006. Pre-implementation activities between Entergy and SPP are underway. SPP is establishing various stakeholder processes required by the FERC Order and filing the criteria it will use to evaluate transmission service. Implementation of the weekly procurement process is anticipated to occur by May 2007.
Background: Based on a positive Declaratory Order issued by the FERC in March 2005, Entergy filed for approval of its ICT in May 2005. On April 24, 2006 the FERC approved Entergy's ICT proposal with modification. On May 24, 2006, Entergy filed (1) a Compliance filing to implement provisions of FERC's April 2006 Order, (2) the ICT contract, signed with SPP earlier in May, and (3) a request that SPP be installed as the ICT. The LPSC approved the ICT proposal on July 12, 2006.

 

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

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

For 12 months ending September 30

2006

2005

Change

GAAP Measures

Return on average invested capital - as-reported

7.5%

7.5%

0.0%

Return on average common equity - as-reported

11.6%

11.5%

0.1%

Net margin - as-reported

8.6%

10.0%

(1.4)%

Cash flow interest coverage

6.0

5.9

0.1

Book value per share

$41.03

$37.89

$3.14

End of period shares outstanding (millions)

208.6

207.4

1.2

Non-GAAP Measures

Return on average invested capital - operational

7.5%

7.3%

0.2%

Return on average common equity - operational

11.6%

11.2%

0.4%

Net margin - operational

8.6%

9.7%

(1.1)%

As of September 30 ($ in millions)

2006

2005

Change

GAAP Measures

Cash and cash equivalents

745

598

147

Revolver capacity

3,095

791

2,304

Total debt

9,054

8,865

189

Debt to capital ratio

50.4%

51.9%

(1.5)%

Off-balance sheet liabilities:

Debt of joint ventures - Entergy's share

149

215

(66)

Leases - Entergy's share

519

564

(45)

Total off-balance sheet liabilities

668

779

(111)

Non-GAAP Measures

Total gross liquidity

3,840

1,389

2,451

Net debt to net capital ratio

48.3%

50.2%

(1.9)%

Net debt ratio including off-balance sheet liabilities

50.2%

52.4%

(2.2)%

 

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

4Q04(q)

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

05YTD

06YTD

Financial

EPS - as-reported ($)

0.68

0.79

1.33

1.65

0.43

0.92

1.33

1.83

3.75

4.08

Less - special items ($)

0.18

-0.01

-0.01

-0.03

-0.16

0.02

0.11

0.03

-0.05

0.16

EPS - operational ($)

0.50

0.80

1.34

1.68

0.59

0.90

1.22

1.80

3.80

3.92

Trailing Twelve Months

ROIC - as-reported (%)

7.3

7.0

7.1

7.5

7.2

7.3

7.3

7.5

ROIC - operational (%)

7.1

6.9

7.2

7.3

7.5

7.5

7.4

7.5

ROE - as-reported (%)

10.7

10.3

10.7

11.5

11.2

11.5

11.3

11.6

ROE - operational (%)

10.4

10.2

10.8

11.2

11.8

12.0

11.5

11.6

Cash Flow Interest Coverage

7.1

7.6

7.1

5.9

4.0

5.1

5.2

6.0

Debt to capital ratio (%)

47.4

49.0

49.9

51.9

53.1

52.1

52.4

50.4

Net debt/net capital ratio (%)

45.3

47.5

48.0

50.2

51.5

50.0

50.4

48.3

Utility

GWh billed

  Residential

7,521

7,170

6,557

10,630

7,212

6,963

7,034

10,772

24,358

24,769

  Commercial & Gov't

7,252

5,854

6,113

7,725

6,277

5,916

6,438

7,920

19,691

20,273

  Industrial

10,425

9,452

9,649

9,736

8,778

9,053

9,561

10,154

28,837

28,768

  Wholesale

1,799

1,728

2,944

3,184

1,549

1,555

2,816

2,894

8,811

8,471

O&M expense/MWh

$17.44

$14.98

$16.69

$11.05

$17.43

$16.12

$16.32

$13.87

$13.83

$15.08

Reliability

  SAIFI

1.9

1.5

1.8

1.8(r)

1.7(r)

1.8(r)

1.7(r)

1.8(r)

1.8(r)

1.8(r)

  SAIDI

169

136

157

158(r)

161(r)

174(r)

178(r)

182(r)

158(r)

182(r)

Nuclear

Net MW in operation

4,058

4,058

4,105

4,105

4,105

4,135

4,200

4,200

4,105

4,200

Avg. realized price per MWh

$40.69

$41.56

$42.63

$42.58

$42.75

$44.39

$43.93

$45.35

$42.26

$44.58

Production cost/MWh

$22.28

$18.71

$19.22

$20.14

$19.48

$19.08

$19.80

$19.65

$19.36

$19.50

Non-fuel O&M expense/MWh

$23.99

$20.03

$20.39

$20.32

$19.95

$19.74

$21.56

$20.61

$20.25

$20.62

Generation in GWh

7,567

8,267

8,156

8,474

8,643

8,742

8,249

9,028

24,896

26,018

Capacity factor

85%

93%

91%

95%

95%

97%

90%

99%

93%

95%

  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: Planned Capital Expenditures

Entergy's capital plan from 2007 through 2009 anticipates $5.2 billion for investment; roughly $2.5 billion of this amount is associated with capital to maintain Entergy's existing assets. The remaining $2.7 billion is associated with specific investments such as the Palisades acquisition, transmission upgrades, dry cask storage and license renewal projects at certain nuclear sites, environmental compliance spending, NYPA value sharing costs and other investments, such as potential opportunities through Entergy's supply plan initiatives that support the utility's ability to meet load growth. Entergy will provide 2007 through 2009 details on planned capital expenditures in its fourth quarter earnings release and the 2006 Form 10-K.

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 9/30/2006

($ in millions)

2006

2007

2008

2009-2010

2011+

Total

Utility, Parent & Other

-

93

1,074

1,783

5,377

8,327

Entergy Nuclear

77

84

24

52

158

395

Total

77

177

1,098

1,835

5,535

8,722

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, forward financial contracts or options (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) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract

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 the Non-Nuclear Wholesale Assets business, 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 or option exercise 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 or option exercise 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)

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

As-reported earnings-rolling 12 months (A)

910

874

895

963

898

920

916

955

Preferred dividends

24

23

24

25

25

27

28

29

Tax effected interest expense

295

282

278

287

293

304

316

324

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

1,228

1,180

1,197

1,275

1,217

1,251

1,260

1,308

Special items in prior quarters

(11)

15

0

37

(11)

(43)

(37)

(6)

Special items 4Q04 thru 3Q06

Utility, Parent & Other
 Tax benefits- Entergy Koch

17

Energy Commodity Services
 Gain (loss) on disposition of assets

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)

13

(1)

 ENOI results

6

11

7

     Total special items (C)

30

13

(2)

30

(45)

(40)

(13)

0

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

1,198

1,166

1,199

1,245

1,262

1,291

1,273

1,308

Operational earnings, rolling 12 months (A-C)

880

861

898

933

943

960

929

955

Average invested capital (D)

16,845

16,825

16,806

17,033

16,850

17,140

17,283

17,514

Average common equity (E)

8,500

8,452

8,347

8,350

8,020

8,026

8,080

8,208

Operating revenues (F)

9,686

9,289

9,465

9,661

10,106

10,564

10,747

11,104

ROIC - as-reported (B/D)

7.3

7.0

7.1

7.5

7.2

7.3

7.3

7.5

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

7.1

6.9

7.2

7.3

7.5

7.5

7.4

7.5

ROE - as-reported (A/E)

10.7

10.3

10.7

11.5

11.2

11.5

11.3

11.6

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

10.4

10.2

10.8

11.2

11.8

12.0

11.5

11.6

Net margin - as-reported (A/F)

9.4

9.4

9.5

10.0

8.9

8.7

8.5

8.6

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

9.1

9.3

9.5

9.7

9.3

9.1

8.6

8.6

 

 

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

($ in millions)

4Q04

1Q05

2Q05

3Q05

4Q05

1Q06

2Q06

3Q06

Gross debt (A)

7,807

8,033

8,283

8,865

9,288

9,329

9,402

9,054

Less cash and cash equivalents (B)

620

477

607

598

583

752

729

745

  Net debt (C)

7,187

7,556

7,676

8,267

8,705

8,576

8,673

8,309

Total capitalization (D)

16,469

16,393

16,609

17,070

17,477

17,888

17,956

17,957

Less cash and cash equivalents (B)

620

477

607

598

583

752

729

745

  Net capital (E)

15,849

15,916

16,002

16,472

16,894

17,135

17,227

17,212

Debt to capital ratio % (A/D)

47.4

49.0

49.9

51.9

53.1

52.1

52.4

50.4

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

45.3

47.5

48.0

50.2

51.5

50.0

50.4

48.3

Off-balance sheet liabilities (F)

769

771

780

779

778

732

671

668

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

47.9

49.9

50.4

52.4

53.7

52.1

52.2

50.2

Revolver capacity (G)

1,490

1,070

1,407

791

2,545

2,733

2,710

3,095

Gross liquidity (B+G)

2,110

1,547

2,014

1,389

3,128

3,485

3,439

3,840

 

Entergy Corporation'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/investor_relations

 

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

In this release and from time to time, Entergy Corporation 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 Corporation 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 Corporation 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 (in addition to the risk factors in the For m 10-K as well as others described in the Form 10-Q for Entergy Corporation and its affiliates and in subsequent securities filings) include: 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 the Entergy System Agreement, Entergy's utilities' supply plan, recovery of storm costs, and recovery of fuel and purchased power costs, Entergy's utilities' ability to manage its operation and maintenance costs, the performance of Entergy's Uitility and non-utility 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's utilities must purchase for their customers, and Entergy's utilities' ability to meet credit support requirements for fuel and power supply contracts, Entergy Corporation'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 Corporation'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 Corporation'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 reg ulation, 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 the areas served by Entergy's utilities, 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 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 emissi ons of sulfur, nitrogen, carbon, mercury, and other substances, the economic climate, particularly growth in the areas served by Entergy's utilities, 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 utilities' 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 Corporation's strategies to reduce tax payments, the effects of litigation and government investigations, changes in accounting standards, corporate governance, and securities law requirements, Entergy Corporation's ability to attract and retai n talented management and directors.

Entergy Corporation 
 
Consolidating Balance Sheet 
September 30, 2006 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 132,211    $ 4,210   $ -    $ 136,421 
  Temporary cash investments - at cost,              
   which approximates market 167,525    441,082     608,607 
     Total cash and cash equivalents 299,736    445,292     745,028 
Notes receivable - Entergy New Orleans DIP loan 31,841    -     31,841 
Notes receivable 447,093    1,077,345   (1,523,311)   1,127 
Accounts receivable:              
  Customer 631,983    -     631,983 
  Allowance for doubtful accounts (19,553)   -     (19,553)
  Associated companies (26,614)   115,805   (89,191)   - 
  Other 264,955    173,404     438,359 
  Accrued unbilled revenues 292,612    -     292,612 
     Total receivables 1,143,383    289,209   (89,191)   1,343,401 
Deferred fuel costs 73,722    -     73,722 
Fuel inventory - at average cost 199,995    2,548     202,543 
Materials and supplies - at average cost 399,742    195,128     594,870 
Deferred nuclear refueling outage costs 29,501    75,010     104,511 
Prepayments and other 56,549    32,742     89,291 
TOTAL 2,681,562    2,117,274   (1,612,502)   3,186,334 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 7,809,863    340,988   (7,827,844)   323,007 
Decommissioning trust funds 1,217,971    1,530,800     2,748,771 
Non-utility property - at cost (less accumulated depreciation) 209,653    3,526     213,179 
Other 33,383    7,247     40,630 
TOTAL 9,270,870    1,882,561   (7,827,844)   3,325,587 
               
PROPERTY, PLANT, AND EQUIPMENT              
             
Electric 28,142,981    2,289,483   (2,506)   30,429,958 
Property under capital lease 723,614    -     723,614 
Natural gas 89,685    -     89,685 
Construction work in progress 691,789    123,477     815,266 
Nuclear fuel under capital lease 248,506    -     248,506 
Nuclear fuel 168,776    293,562     462,338 
TOTAL PROPERTY, PLANT AND EQUIPMENT 30,065,351    2,706,522   (2,506)   32,769,367 
Less - accumulated depreciation and amortization 13,083,787    330,109     13,413,896 
PROPERTY, PLANT AND EQUIPMENT - NET 16,981,564    2,376,413   (2,506)   19,355,471 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 777,042    -     777,042 
  Other regulatory assets 2,376,634    -     2,376,634 
  Deferred fuel costs 168,122    -     168,122 
Long-term receivables 22,989    -     22,989 
Goodwill 374,099    3,073     377,172 
Other 787,179    785,094   (603,970)   968,303 
TOTAL 4,506,065    788,167   (603,970)   4,690,262 
      - -        
TOTAL ASSETS $ 33,440,061    $ 7,164,415   $ (10,046,822)   $ 30,557,654 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
September 30, 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    $ 84,856    $ -    $ 108,191 
Notes payable:              
  Associated companies 1,022,928    500,383    (1,523,311)   - 
  Other 41        41 
Account payable:              
  Associated companies 63,718    21,358    (85,076)   - 
  Other 750,410    118,775      869,185 
Customer deposits 239,612        239,612 
Taxes accrued 220,476    33,729      254,205 
Accumulated deferred income taxes 36,805        36,805 
Nuclear refueling outage costs 4,791        4,791 
Interest accrued 146,569    11,476      158,045 
Obligations under capital leases 136,944        136,944 
Other 109,887    219,238      329,125 
TOTAL 2,755,516    989,815    (1,608,387)   2,136,944 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,710,541    247,605      5,958,146 
Accumulated deferred investment tax credits 363,050        363,050 
Obligations under capital leases 183,835        183,835 
Other regulatory liabilities 431,901        431,901 
Decommissioning and retirement cost liabilities 1,226,976    767,209      1,994,185 
Transition to competition 79,098        79,098 
Regulatory reserves 15,916        15,916 
Accumulated provisions 356,100    159,447      515,547 
Long-term debt 8,303,386    381,107    (70,379)   8,614,114 
Preferred stock with sinking fund 10,500        10,500 
Other 1,528,027    364,077    (540,981)   1,351,123 
TOTAL 18,209,330    1,919,445    (611,360)   19,517,415 
               
Preferred stock without sinking fund 310,755    426,217    (391,937)   345,035 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2006 2,205,192    1,091,855    (3,294,565)   2,482 
Paid-in capital 6,650,215    1,507,523    (3,338,846)   4,818,892 
Retained earnings 5,560,725    1,355,730    (965,669)   5,950,786 
Accumulated other comprehensive income (loss) (19,580)   (82,854)   626    (101,808)
Less - treasury stock, at cost (39,606,024 shares in 2006) 2,232,092    43,316    (163,316)   2,112,092 
TOTAL 12,164,460    3,828,938    (7,435,138)   8,558,260 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 33,440,061    $ 7,164,415    $ (10,046,822)   $ 30,557,654 
               
*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 
     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 629,717        629,717 
  Allowance for doubtful accounts (28,635)   (2,170)     (30,805)
  Associated companies 33,851    69,719    (103,570)   - 
  Other 296,286    162,866      459,152 
  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 
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 
September 30, 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 $ (74,924)   $ (10,428)   $ -    $ (85,352)
  Temporary cash investments - at cost,              
   which approximates market 39,739    207,821      247,560 
     Total cash and cash equivalents (35,185)   197,393      162,208 
Notes receivable - Entergy New Orleans DIP loan (58,159)       (58,159)
Notes receivable (128,780)   (67,160)   193,840    (2,100)
Accounts receivable:              
  Customer 2,266        2,266 
  Allowance for doubtful accounts 9,082    2,170      11,252 
  Associated companies (60,465)   46,086    14,379    - 
  Other (31,331)   10,538      (20,793)
  Accrued unbilled revenues (184,958)    -      (184,958)
     Total receivables (265,406)   58,794    14,379    (192,233)
Deferred fuel costs (470,205)       (470,205)
Fuel inventory - at average cost (4,387)   735      (3,652)
Materials and supplies - at average cost 30,345    (46,407)     (16,062)
Deferred nuclear refueling outage costs (34,656)   (18,597)     (53,253)
Prepayments and other (244,838)   8,334      (236,504)
TOTAL (1,211,271)   133,092    208,219    (869,960)
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity (388,377)   (87,018)   501,618    26,223 
Decommissioning trust funds 81,965    60,041      142,006 
Non-utility property - at cost (less accumulated depreciation) (16,611)   957      (15,654)
Other (2,211)   (38,694)     (40,905)
TOTAL (325,234)   (64,714)   501,618    111,670 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 966,025    302,404    502    1,268,931 
Property under capital lease (3,951)       (3,951)
Natural gas 2,891        2,891 
Construction work in progress (599,585)   (109,234)     (708,819)
Nuclear fuel under capital lease (23,109)       (23,109)
Nuclear fuel 67,373    (41,681)     25,692 
TOTAL PROPERTY, PLANT AND EQUIPMENT 409,644    151,489    502    561,635 
Less - accumulated depreciation and amortization 353,242    49,967      403,209 
PROPERTY, PLANT AND EQUIPMENT - NET 56,402    101,522    502    158,426 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 41,821        41,821 
  Other regulatory assets 242,910        242,910 
  Deferred fuel costs 47,633        47,633 
Long-term receivables (2,583)       (2,583)
Goodwill       - 
Other (53,889)   (16,493)   46,850    (23,532)
TOTAL 275,892    (16,493)   46,850    306,249 
               
TOTAL ASSETS $ (1,204,211)   $ 153,407    $ 757,189    $ (293,615)
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
September 30, 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    $ 4,328    $ -    $ 4,674 
Notes payable:              
  Associated companies 96,657    (30,497)   (66,160)   - 
  Other (40,000)       (40,000)
Account payable:              
  Associated companies (14,075)   (2,035)   16,110    - 
  Other (743,975)   (42,627)     (786,602)
Customer deposits 17,568    (162)     17,406 
Taxes accrued (96,183)   162,229      66,046 
Accumulated deferred income taxes (106,604)       (106,604)
Nuclear refueling outage costs (10,757)       (10,757)
Interest accrued (6,700)   9,890      3,190 
Obligations under capital leases 6,062        6,062 
Other 43,520    (187,905)     (144,385)
TOTAL (854,141)   (86,779)   (50,050)   (990,970)
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 465,333    213,585      678,918 
Accumulated deferred investment tax credits (13,500)       (13,500)
Obligations under capital leases 8,830        8,830 
Other regulatory liabilities 23,234        23,234 
Decommissioning and retirement cost liabilities 65,146    5,068      70,214 
Transition to competition (3)       (3)
Regulatory reserves (2,708)       (2,708)
Accumulated provisions 5,835    (46,316)     (40,481)
Long-term debt (488,425)   32,034    246,012    (210,379)
Preferred stock with sinking fund (3,450)       (3,450)
Other (201,050)   (385,884)   59,040    (527,894)
TOTAL (140,758)   (181,513)   305,052    (17,219)
               
Preferred stock without sinking fund (100,566)   (373)     (100,939)
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2006 and 2005   (1)     - 
Paid-in capital (3,664)   (57,797)   62,716    1,255 
Retained earnings (151,670)   234,579    439,470    522,379 
Accumulated other comprehensive income (loss) (3,280)   245,291      242,011 
Less - treasury stock, at cost (49,868)       (49,868)
TOTAL (108,746)   422,072    502,187    815,513 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ (1,204,211)   $ 153,407    $ 757,189    $ (293,615)
               
*Totals may not foot due to rounding.              

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended September 30, 2006 
(Dollars in thousands) 
(Unaudited) 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 2,761,952    $ -   $ (828)   $ 2,761,124 
Natural gas   12,495    -     12,495 
Competitive businesses   11,544    475,457   (5,902)   481,100 
     Total   2,785,991    475,457   (6,730)   3,254,719 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   908,012    79,546     987,558 
  Purchased power   588,687    25,374   (6,284)   607,777 
  Nuclear refueling outage expenses   20,022    23,023     43,045 
  Other operation and maintenance   408,544    183,006   (559)   590,992 
Decommissioning   20,909    16,024     36,933 
Taxes other than income taxes   119,040    14,487     133,527 
Depreciation and amortization   211,106    20,935     232,042 
Other regulatory charges (credits) - net   (21,563)   -     (21,563)
     Total   2,254,757    362,395   (6,843)   2,610,311 
                 
OPERATING INCOME   531,234    113,062   113    644,408 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   7,721    -     7,721 
Interest and dividend income   26,161    32,294   (20,735)   37,720 
Equity in earnings (loss) of unconsolidated equity affiliates   8,127    6,645     14,772 
Miscellaneous - net   7,223    23,855   (114)   30,964 
     Total   49,232    62,794   (20,849)   91,177 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   123,454    2,453     125,907 
Other interest - net   20,636    15,122   (20,722)   15,035 
Allowance for borrowed funds used during construction   (4,538)   -     (4,538)
     Total   139,552    17,575   (20,722)   136,404 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   440,914    158,281   (14)   599,181 
                 
Income taxes   148,048    54,389     202,437 
                 
INCOME FROM CONTINUING OPERATIONS   292,866    103,892   (14)   396,744 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($563))   (1,050)   -     (1,050)
                 
CONSOLIDATED NET INCOME   291,816    103,892   (14)   395,694 
                 
Preferred dividend requirements and other   5,956    869   (14)   6,811 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 285,860    $ 103,023   $ -    $ 388,883 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $1.38    $0.49       $1.87 
  DILUTED   $1.35    $0.48       $1.83 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC     -       - 
  DILUTED     -       - 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $1.38    $0.49       $1.87 
  DILUTED   $1.35    $0.48       $1.83 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               208,382,863 
  DILUTED               212,404,770 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended September 30, 2005 
(Dollars in thousands) 
(Unaudited) 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 2,490,655    $ -    $ (390)   $ 2,490,265 
Natural gas   12,343        12,343 
Competitive businesses   11,385    405,995    (21,730)   395,650 
     Total   2,514,383    405,995    (22,120)   2,898,258 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   545,798    61,509      607,307 
  Purchased power   760,442    9,876    (21,766)   748,552 
  Nuclear refueling outage expenses   19,327    22,105      41,432 
  Other operation and maintenance   320,715    170,236    (468)   490,483 
Decommissioning   20,235    14,821      35,056 
Taxes other than income taxes   83,782    14,935      98,717 
Depreciation and amortization   202,676    14,539      217,215 
Other regulatory charges (credits) - net   5,156        5,156 
     Total   1,958,131    308,021    (22,234)   2,243,918 
                  
OPERATING INCOME   556,252    97,974    114    654,340 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   5,894        5,894 
Interest and dividend income   37,544    26,457    (13,437)   50,564 
Equity in earnings (loss) of unconsolidated equity affiliates   7,769    650      8,419 
Miscellaneous - net   (1,534)   (8,729)   (114)   (10,377)
     Total   49,673    18,378    (13,551)   54,500 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   107,459    3,642      111,101 
Other interest - net   22,493    9,609    (13,423)   18,679 
Allowance for borrowed funds used during construction   (6,516)       (6,516)
     Total   123,436    13,251    (13,423)   123,264 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   482,489    103,101    (14)   585,576 
                 
Income taxes   184,038    38,042      222,080 
                 
INCOME FROM CONTINUING OPERATIONS   298,451    65,059    (14)   363,496 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($3,823))   (7,108)       (7,108)
                 
CONSOLIDATED NET INCOME   291,343    65,059    (14)   356,388 
                 
Preferred dividend requirements and other   5,581    869    (14)   6,436 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 285,762    $ 64,190    $ -    $ 349,952 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $1.40    $0.31        $1.71 
  DILUTED   $1.38    $0.30        $1.68 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.03)         ($0.03)
  DILUTED   ($0.03)         ($0.03)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $1.37    $0.31        $1.68 
  DILUTED   $1.35    $0.30        $1.65 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               207,906,762 
  DILUTED               212,335,619 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation 
 
Consolidating Income Statement 
Three Months Ended September 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 271,297    $ -    $ (438)   $ 270,859 
Natural gas   152        152 
Competitive businesses   159    69,462    15,828    85,450 
     Total   271,608    69,462    15,390    356,461 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   362,214    18,037      380,251 
  Purchased power   (171,755)   15,498    15,482    (140,775)
  Nuclear refueling outage expenses   695    918      1,613 
  Other operation and maintenance   87,829    12,770    (91)   100,509 
Decommissioning   674    1,203      1,877 
Taxes other than income taxes   35,258    (448)     34,810 
Depreciation and amortization   8,430    6,396      14,827 
Other regulatory charges (credits )- net   (26,719)       (26,719)
     Total   296,626    54,374    15,391    366,393 
                 
OPERATING INCOME   (25,018)   15,088    (1)   (9,932)
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   1,827        1,827 
Interest and dividend income   (11,383)   5,837    (7,298)   (12,844)
Equity in earnings (loss) of unconsolidated equity affiliates   358    5,995      6,353 
Miscellaneous - net   8,757    32,584      41,341 
     Total   (441)   44,416    (7,298)   36,677 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   15,995    (1,189)     14,806 
Other interest - net   (1,857)   5,513    (7,299)   (3,644)
Allowance for borrowed funds used during construction   1,978        1,978 
     Total   16,116    4,324    (7,299)   13,140 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   (41,575)   55,180      13,605 
                 
Income taxes   (35,990)   16,347      (19,643)
                 
INCOME FROM CONTINUING OPERATIONS   (5,585)   38,833      33,248 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes)   6,058        6,058 
                 
CONSOLIDATED NET INCOME   473    38,833      39,306 
                 
Preferred dividend requirements and other   375        375 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 98    $ 38,833    $ -    $ 38,931 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   ($0.02)   $0.18        $0.16 
  DILUTED   ($0.03)   $0.18        $0.15 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   $0.03          $0.03 
  DILUTED   $0.03          $0.03 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.01    $0.18        $0.19 
  DILUTED     $0.18        $0.18 
                 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation
 
Consolidating Income Statement 
Nine Months Ended September 30, 2006 
(Dollars in thousands) 
(Unaudited) 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 7,033,840    $ -    $ (2,069)   $ 7,031,771 
Natural gas   63,522        63,522 
Competitive businesses   31,388    1,355,458    (30,885)   1,355,961 
     Total   7,128,750    1,355,458    (32,954)   8,451,254 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,289,085    200,262      2,489,347 
  Purchased power   1,633,461    44,618    (31,524)   1,646,555 
  Nuclear refueling outage expenses   59,880    67,704      127,584 
  Other operation and maintenance   1,154,030    541,401    (1,772)   1,693,657 
Decommissioning   61,626    47,161      108,787 
Taxes other than income taxes   282,570    45,425      327,995 
Depreciation and amortization   596,843    58,531      655,374 
Other regulatory charges (credits) - net   (124,509)       (124,509)
     Total   5,952,986    1,005,102    (33,296)   6,924,790 
                 
OPERATING INCOME   1,175,764    350,356    342    1,526,464 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   32,088        32,088 
Interest and dividend income   94,862    88,221    (66,393)   116,689 
Equity in earnings (loss) of unconsolidated equity affiliates   26,014    829      26,843 
Miscellaneous - net   (2,450)   19,585    (342)   16,793 
     Total   150,514    108,635    (66,735)   192,413 
                  
INTEREST AND OTHER CHARGES                
Interest on long-term debt   362,005    7,053      369,058 
Other interest - net   65,695    48,188    (66,352)   47,532 
Allowance for borrowed funds used during construction   (18,989)       (18,989)
     Total   408,711    55,241    (66,352)   397,601 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   917,567    403,750    (41)   1,321,276 
                 
Income taxes   295,148    149,022      444,170 
                 
INCOME FROM CONTINUING OPERATIONS   622,419    254,728    (41)   877,106 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes of $5,423)   9,830        9,830 
                 
CONSOLIDATED NET INCOME   632,249    254,728    (41)   886,936 
                 
Preferred dividend requirements and other   20,057    2,606    (41)   22,622 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 612,192    $ 252,122    $ -    $ 864,314 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $2.90    $1.21        $4.11 
  DILUTED   $2.84    $1.19        $4.03 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   $0.05          $0.05 
  DILUTED   $0.05          $0.05 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.95    $1.21        $4.16 
  DILUTED   $2.89    $1.19        $4.08 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               208,034,946 
  DILUTED               211,782,858 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation 
 
Consolidating Income Statement 
Nine Months Ended September 30, 2005 
(Dollars in thousands) 
(Unaudited) 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 6,238,134    $ -    $ (1,185)   $ 6,236,949 
Natural gas   51,729        51,729 
Competitive businesses   34,661    1,187,420    (56,928)   1,165,153 
     Total   6,324,524    1,187,420    (58,113)   7,453,831 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   1,354,748    170,904      1,525,652 
  Purchased power   1,815,383    30,635    (57,282)   1,788,736 
  Nuclear refueling outage expenses   54,099    66,294      120,393 
  Other operation and maintenance   1,064,060    489,971    (1,173)   1,552,858 
Decommissioning   64,477    44,102      108,579 
Taxes other than income taxes   242,330    42,019      284,349 
Depreciation and amortization   586,390    50,766      637,156 
Other regulatory charges (credits) - net   (44,814)       (44,814)
     Total   5,136,673    894,691    (58,455)   5,972,909 
                 
OPERATING INCOME   1,187,851    292,729    342    1,480,922 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   29,414        29,414 
Interest and dividend income   91,462    70,927    (46,768)   115,621 
Equity in earnings (loss) of unconsolidated equity affiliates   24,153    (2,141)     22,012 
Miscellaneous - net   (13,558)   18,499    (342)   4,599 
     Total   131,471    87,285    (47,110)   171,646 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   313,187    10,962      324,149 
Other interest - net   50,907    39,256    (46,727)   43,436 
Allowance for borrowed funds used during construction   (19,790)       (19,790)
     Total   344,304    50,218    (46,727)   347,795 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   975,018    329,796    (41)   1,304,773 
                 
Income taxes   342,773    123,399      466,172 
                 
INCOME FROM CONTINUING OPERATIONS   632,245    206,397    (41)   838,601 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($6,057))   (11,286)       (11,286)
                 
CONSOLIDATED NET INCOME   620,959    206,397    (41)   827,315 
                 
Preferred dividend requirements and other   16,652    2,606    (41)   19,217 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 604,307    $ 203,791    $ -    $ 808,098 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $2.91    $0.97        $3.88 
  DILUTED   $2.86    $0.94        $3.80 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.05)         ($0.05)
  DILUTED   ($0.05)         ($0.05)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.86    $0.97        $3.83 
  DILUTED   $2.81    $0.94        $3.75 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               211,033,629 
  DILUTED               215,540,185 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation 
 
Consolidating Income Statement 
Nine Months Ended September 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 795,706    $ -    $ (884)   $ 794,822 
Natural gas   11,793        11,793 
Competitive businesses   (3,273)   168,038    26,043    190,808 
     Total   804,226    168,038    25,159    997,423 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   934,337    29,358      963,695 
  Purchased power   (181,922)   13,983    25,758    (142,181)
  Nuclear refueling outage expenses   5,781    1,410      7,191 
  Other operation and maintenance   89,970    51,430    (599)   140,799 
Decommissioning   (2,851)   3,059      208 
Taxes other than income taxes   40,240    3,406      43,646 
Depreciation and amortization   10,453    7,765      18,218 
Other regulatory charges (credits )- net   (79,695)       (79,695)
     Total   816,313    110,411    25,159    951,881 
                 
OPERATING INCOME   (12,087)   57,627      45,542 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   2,674        2,674 
Interest and dividend income   3,400    17,294    (19,625)   1,068 
Equity in earnings (loss) of unconsolidated equity affiliates   1,861    2,970      4,831 
Miscellaneous - net   11,108    1,086      12,194 
     Total   19,043    21,350    (19,625)   20,767 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   48,818    (3,909)     44,909 
Other interest - net   14,788    8,932    (19,625)   4,096 
Allowance for borrowed funds used during construction   801        801 
     Total   64,407    5,023    (19,625)   49,806 
                  
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   (57,451)   73,954      16,503 
                 
Income taxes   (47,625)   25,623      (22,002)
                 
INCOME FROM CONTINUING OPERATIONS   (9,826)   48,331      38,505 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes)   21,116        21,116 
                 
CONSOLIDATED NET INCOME   11,290    48,331      59,621 
                 
Preferred dividend requirements and other   3,405        3,405 
                  
EARNINGS APPLICABLE TO COMMON STOCK   $ 7,885    $ 48,331    $ -    $ 56,216 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   ($0.01)   $0.24        $0.23 
  DILUTED   ($0.02)   $0.25        $0.23 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   $0.10          $0.10 
  DILUTED   $0.10          $0.10 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.09    $0.24        $0.33 
  DILUTED   $0.08    $0.25        $0.33 
                 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation
 
Consolidating Income Statement 
Twelve Months Ended September 30, 2006 
(Dollars in thousands) 
(Unaudited) 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 9,244,987    $ -    $ (3,335)   $ 9,241,652 
Natural gas   89,452        89,452 
Competitive businesses   42,730    1,781,319    (51,483)   1,772,566 
     Total   9,377,169    1,781,319    (54,818)   11,103,670 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,876,224    263,486      3,139,710 
  Purchased power   2,377,615    54,076    (52,676)   2,379,015 
  Nuclear refueling outage expenses   79,747    90,098      169,845 
  Provision for turbine commitments, asset impairments                
   and restructuring charges         - 
  Other operation and maintenance   1,548,562    717,088    (2,597)   2,263,053 
Decommissioning   81,058    62,270      143,328 
Taxes other than income taxes   366,006    60,164      426,170 
Depreciation and amortization   809,687    74,487      884,174 
Other regulatory charges (credits) - net   (129,577)       (129,577)
     Total   8,009,322    1,321,669    (55,273)   9,275,718 
                 
OPERATING INCOME   1,367,847    459,650    455    1,827,952 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   48,410        48,410 
Interest and dividend income   133,244    112,813    (90,172)   155,885 
Equity in earnings (loss) of unconsolidated equity affiliates   12,322    (6,507)     5,815 
Miscellaneous - net   (7,923)   34,826    (456)   26,447 
     Total   186,053    141,132    (90,628)   236,557 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   466,295    9,370      475,665 
Other interest - net   99,005    64,192    (90,118)   73,079 
Allowance for borrowed funds used during construction   (28,574)       (28,574)
     Total   536,726    73,562    (90,118)   520,170 
                  
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,017,174    527,220    (55)   1,544,339 
                  
Income taxes   356,047    181,235      537,282 
                 
INCOME FROM CONTINUING OPERATIONS   661,127    345,985    (55)   1,007,057 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of $ (12,571))   (23,678)       (23,678)
                 
CONSOLIDATED NET INCOME   637,449    345,985    (55)   983,379 
                 
Preferred dividend requirements and other   25,412    3,475    (55)   28,832 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 612,037    $ 342,510    $ -    $ 954,547 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $3.06    $1.65        $4.71 
  DILUTED   $3.00    $1.62        $4.62 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.12)         ($0.12)
  DILUTED   ($0.11)         ($0.11)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.94    $1.65        $4.59 
  DILUTED   $2.89    $1.62        $4.51 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               207,896,380 
  DILUTED               211,653,276 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation
 
Consolidating Income Statement 
Twelve Months Ended September 30, 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 8,071,618    $ -    $ (1,635)   $ 8,069,983 
Natural gas   65,910        65,910 
Competitive businesses   50,047    1,546,317    (70,819)   1,525,545 
     Total   8,187,575    1,546,317    (72,454)   9,661,438 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   1,881,964    220,014      2,101,978 
  Purchased power   2,217,974    42,586    (71,258)   2,189,302 
  Nuclear refueling outage expenses   72,200    90,181      162,381 
  Provision for turbine commitments, asset impairments                
   and restructuring charges     55,000      55,000 
  Other operation and maintenance   1,489,306    619,297    (1,669)   2,106,934 
Decommissioning   86,352    58,564      144,916 
Taxes other than income taxes   313,239    55,651      368,890 
Depreciation and amortization   800,372    60,917      861,289 
Other regulatory charges (credits) - net   (79,618)       (79,618)
     Total   6,781,789    1,202,210    (72,927)   7,911,072 
                 
OPERATING INCOME   1,405,786    344,107    473    1,750,366 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   40,196        40,196 
Interest and dividend income   117,437    94,373    (61,634)   150,176 
Equity in earnings (loss) of unconsolidated equity affiliates   19,362    (48,957)     (29,595)
Miscellaneous - net   (13,267)   (40,812)   (473)   (54,552)
     Total   163,728    4,604    (62,107)   106,225 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   420,115    14,772      434,887 
Other interest - net   65,887    53,707    (61,538)   58,056 
Allowance for borrowed funds used during construction   (26,792)       (26,792)
     Total   459,210    68,479    (61,538)   466,151 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,110,304    280,232    (96)   1,390,440 
                  
Income taxes   387,975    931      388,906 
                 
INCOME FROM CONTINUING OPERATIONS   722,329    279,301    (96)   1,001,534 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes of ($6,456))   (13,487)       (13,487)
                 
CONSOLIDATED NET INCOME   708,842    279,301    (96)   988,047 
                 
Preferred dividend requirements and other   22,205    2,903    (96)   25,012 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ 686,637    $ 276,398    $ -    $ 963,035 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $3.28    $1.29        $4.57 
  DILUTED   $3.21    $1.27        $4.48 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.06)         ($0.06)
  DILUTED   ($0.06)         ($0.06)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $3.22    $1.29        $4.51 
  DILUTED   $3.15    $1.27        $4.42 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               213,709,625 
  DILUTED               218,113,031 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation 
 
Consolidating Income Statement 
Twelve Months Ended September 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Domestic electric   $ 1,173,369    $ -    $ (1,700)   $ 1,171,669 
Natural gas   23,542        23,542 
Competitive businesses   (7,317)   235,002    19,336    247,021 
     Total   1,189,594    235,002    17,636    1,442,232 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   994,260    43,472      1,037,732 
  Purchased power   159,641    11,490    18,582    189,713 
  Nuclear refueling outage expenses   7,547    (83)     7,464 
  Provision for turbine commitments, asset impairments                 
   and restructuring charges     (55,000)     (55,000)
  Other operation and maintenance   59,256    97,791    (928)   156,119 
Decommissioning   (5,294)   3,706      (1,588)
Taxes other than income taxes   52,767    4,513      57,280 
Depreciation and amortization   9,315    13,570      22,885 
Other regulatory charges (credits) - net   (49,959)       (49,959)
     Total   1,227,533    119,459    17,654    1,364,646 
                 
OPERATING INCOME   (37,939)   115,543    (18)   77,586 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   8,214        8,214 
Interest and dividend income   15,807    18,440    (28,538)   5,709 
Equity in earnings (loss) of unconsolidated equity affiliates   (7,040)   42,450      35,410 
Miscellaneous - net   5,344    75,638    17    80,999 
     Total   22,325    136,528    (28,521)   130,332 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   46,180    (5,402)     40,778 
Other interest - net   33,118    10,485    (28,580)   15,023 
Allowance for borrowed funds used during construction   (1,782)       (1,782)
     Total   77,516    5,083    (28,580)   54,019 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   (93,130)   246,988    41    153,899 
                 
Income taxes   (31,928)   180,304      148,376 
                 
INCOME FROM CONTINUING OPERATIONS   (61,202)   66,684    41    5,523 
                 
LOSS FROM DISCONTINUED OPERATIONS (net of taxes)   (10,191)       (10,191)
                 
CONSOLIDATED NET INCOME   (71,393)   66,684    41    (4,668)
                 
Preferred dividend requirements and other   3,207    572    41    3,820 
                 
EARNINGS APPLICABLE TO COMMON STOCK   $ (74,600)   $ 66,112    $ -    $ (8,488)
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   ($0.22)   $0.36        $0.14 
  DILUTED   ($0.21)   $0.35        $0.14 
LOSS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.06)         ($0.06)
  DILUTED   ($0.05)         ($0.05)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   ($0.28)   $0.36        $0.08 
  DILUTED   ($0.26)   $0.35        $0.09 
                 
                 
*Totals may not foot due to rounding.                
                 

 

Entergy Corporation 
 
Consolidated Cash Flow Statement 
Three Months Ended September 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
             
    2006   2005   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $395,694    $356,388    $39,306 
Adjustments to reconcile consolidated net income to net cash flow            
 provided by operating activities:            
  Reserve for regulatory adjustments   2,277    (11,290)   13,567 
  Other regulatory credits - net   (21,563)   5,157    (26,720)
  Depreciation, amortization, and decommissioning   268,995    252,939    16,056 
  Deferred income taxes and investment tax credits   (5,998)   111,718    (117,716)
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   (14,773)   (4,719)   (10,054)
  Changes in working capital:            
    Receivables   (108,169)   (551,693)   443,524 
    Fuel inventory   17,302    (19,472)   36,774 
    Accounts payable   (105,054)   523,333    (628,387)
    Taxes accrued   232,597    118,308    114,289 
    Interest accrued   24,944    32,946    (8,002)
    Deferred fuel   163,828    (191,179)   355,007 
    Other working capital accounts   7,701    (15,103)   22,804 
  Provision for estimated losses and reserves   2,558    (5,781)   8,339 
  Changes in other regulatory assets   (27,796)   (337,625)   309,829 
  Other   (55,729)   69,869    (125,598)
Net cash flow provided by operating activities   776,814    333,796    443,018 
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (291,403)   (261,161)   (30,242)
Allowance for equity funds used during construction   7,721    5,893    1,828 
Nuclear fuel purchases   (136,509)   (76,142)   (60,367)
Proceeds from sale/leaseback of nuclear fuel   93,970    48,460    45,510 
Decrease (increase) in other investments   6,431    (43,495)   49,926 
Proceeds from nuclear decommissioning trust fund sales   56,939    281,268    (224,329)
Investment in nuclear decommissioning trust funds   (81,867)   (307,882)   226,015 
Other regulatory investments   3,973    (176,432)   180,405 
Net cash flow used in investing activities   (340,745)   (529,491)   188,746 
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   139,836    1,176,552    (1,036,716)
  Preferred stock     (2)  
  Common stock and treasury stock   16,700    24,684    (7,984)
Retirement of long-term debt   (454,679)   (664,995)   210,316 
Repurchase of common stock     (238,368)   238,368 
Redemption of preferred stock   (2,821)   (31,469)   28,648 
Changes in credit line borrowings - net     40,000    (40,000)
Dividends paid:            
  Common stock   (112,646)   (112,084)   (562)
  Preferred stock   (6,101)   (6,308)   207 
Net cash flow provided by (used in) financing activities   (419,711)   188,010    (607,721)
             
Effect of exchange rates on cash and cash equivalents   (264)   (916)   652 
             
Net increase (decrease) in cash and cash equivalents   16,094    (8,601)   24,695 
             
Cash and cash equivalents at beginning of period   728,934    606,632    122,302 
             
Cash and cash equivalents at end of period   $745,028    $598,031    $146,997 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $107,605    $89,636    $17,969 
    Income taxes   $33,765    $35,301    ($1,536)
             
             

 

Entergy Corporation
 
Consolidated Cash Flow Statement 
Nine Months Ended September 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
             
    2006   2005   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $886,936    $827,315    $59,621 
Adjustments to reconcile consolidated net income to net cash flow            
 provided by operating activities:            
  Reserve for regulatory adjustments   43,960    (85,212)   129,172 
  Other regulatory credits - net   (124,509)   (44,814)   (79,695)
  Depreciation, amortization, and decommissioning   765,627    747,397    18,230 
  Deferred income taxes and investment tax credits   (90,439)   204,297    (294,736)
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   (24,669)   (16,712)   (7,957)
  Changes in working capital:            
    Receivables   210,311    (675,927)   886,238 
    Fuel inventory   3,652    (10,407)   14,059 
    Accounts payable   (390,804)   508,648    (899,452)
    Taxes accrued   768,251    186,803    581,448 
    Interest accrued   3,190    15,231    (12,041)
    Deferred fuel   436,663    (267,441)   704,104 
    Other working capital accounts   111,491    (64,075)   175,566 
  Provision for estimated losses and reserves   27,595    5,755    21,840 
  Changes in other regulatory assets   (193,323)   (316,327)   123,004 
  Other   (176,575)   92,417    (268,992)
Net cash flow provided by operating activities   2,257,357    1,106,948    1,150,409 
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (1,233,505)   (877,165)   (356,340)
Allowance for equity funds used during construction   32,088    29,414    2,674 
Nuclear fuel purchases   (260,759)   (260,587)   (172)
Proceeds from sale/leaseback of nuclear fuel   135,079    174,140    (39,061)
Proceeds from sale of assets and businesses   77,159      77,159 
Payment for purchase of plant   (88,199)   (162,075)   73,876 
Decrease (increase) in other investments   56,501    19,698    36,803 
Purchase of other temporary investments     (1,591,025)   1,591,025 
Liquidation of other temporary investments     1,778,975    (1,778,975)
Proceeds from nuclear decommissioning trust fund sales   580,745    711,494    (130,749)
Investment in nuclear decommissioning trust funds   (655,788)   (786,635)   130,847 
Other regulatory investments   (38,506)   (240,232)   201,726 
Net cash flow used in investing activities   (1,395,185)   (1,203,998)   (191,187)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   1,377,701    2,538,976    (1,161,275)
  Preferred stock   73,354    29,998    43,356 
  Common stock and treasury stock   32,072    114,552    (82,480)
Retirement of long-term debt   (1,598,425)   (1,366,909)   (231,516)
Repurchase of common stock     (878,188)   878,188 
Redemption of preferred stock   (183,881)   (33,719)   (150,162)
Changes in credit line borrowings - net   (40,000)   39,850    (79,850)
Dividends paid:            
  Common stock   (337,104)   (341,437)   4,333 
  Preferred stock   (22,861)   (19,087)   (3,774)
Net cash flow provided by (used in) financing activities   (699,144)   84,036    (783,180)
             
Effect of exchange rates on cash and cash equivalents   (820)   (787)   (33)
             
Net increase (decrease) in cash and cash equivalents   162,208    (13,801)   176,009 
             
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   $745,028    $598,031    $146,997 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $390,059    $332,056    $58,003 
    Income taxes   ($197,560)   $118,989    ($316,549)
             
             

 

Entergy Corporation
 
Consolidated Cash Flow Statement 
Twelve Months Ended September 30, 2006 vs. 2005 
(Dollars in thousands) 
(Unaudited) 
             
    2006   2005   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $983,379    $988,047    ($4,668)
Adjustments to reconcile consolidated net income to net cash flow            
 provided by operating activities:            
  Reserve for regulatory adjustments   47,139    (57,045)   104,184 
  Other regulatory credits - net   (129,577)   (79,618)   (49,959)
  Depreciation, amortization, and decommissioning   1,020,082    1,008,659    11,423 
  Deferred income taxes and investment tax credits   332,077    317,598    14,479 
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   (3,642)   538,029    (541,671)
  Provision for asset impairments and restructuring charges   39,767    55,000    (15,233)
  Changes in working capital:            
    Receivables   518,887    (567,725)   1,086,612 
    Fuel inventory   (69,066)   (8,236)   (60,830)
    Accounts payable   (596,258)   615,889    (1,212,147)
    Taxes accrued   409,133    (37,435)   446,568 
    Interest accrued   3,092    4,155    (1,063)
    Deferred fuel   467,303    (219,742)   687,045 
    Other working capital accounts   129,913    (24,824)   154,737 
  Provision for estimated losses and reserves   18,136    3,678    14,458 
  Changes in other regulatory assets   (188,930)   (276,665)   87,735 
  Other   (363,218)   39,955    (403,173)
Net cash flow provided by operating activities   2,618,217    2,299,720    318,497 
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (1,814,426)   (1,328,095)   (486,331)
Allowance for equity funds used during construction   48,410    40,196    8,214 
Nuclear fuel purchases   (314,586)   (346,675)   32,089 
Proceeds from sale/leaseback of nuclear fuel   145,342    209,349    (64,007)
Proceeds from sale of assets and businesses   77,159    53,452    23,707 
Payment for purchase of plant   (88,199)   (162,075)   73,876 
Investment in nonutility properties     13,712    (13,712)
Decrease (increase) in other investments   46,708    414,536    (367,828)
Purchase of other temporary investments     (2,616,625)   2,616,625 
Liquidation of other temporary investments     2,663,125    (2,663,125)
Proceeds from nuclear decommissioning trust fund sales   813,504    757,089    56,415 
Investment in nuclear decommissioning trust funds   (908,977)   (856,041)   (52,936)
Other regulatory investments   (188,730)   (231,267)   42,537 
Net cash flow used in investing activities   (2,183,795)   (1,389,319)   (794,476)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   3,141,295    4,751,979    (1,610,684)
  Preferred stock   171,351    29,998    141,353 
  Common stock and treasury stock   23,588    144,444    (120,856)
Retirement of long-term debt   (2,920,722)   (3,704,987)   784,265 
Repurchase of common stock     (1,479,915)   1,479,915 
Redemption of preferred stock   (183,881)   (33,719)   (150,162)
Changes in credit line borrowings - net   (40,000)   (70,229)   30,229 
Dividends paid:            
  Common stock   (449,175)   (464,829)   15,654 
  Preferred stock   (29,246)   (24,883)   (4,363)
Net cash flow used in financing activities   (286,790)   (852,141)   565,351 
             
Effect of exchange rates on cash and cash equivalents   (635)   (1,534)   899 
             
Net increase in cash and cash equivalents   146,997    56,726    90,271 
             
Cash and cash equivalents at beginning of period   598,031    541,305    56,726 
             
Cash and cash equivalents at end of period   $745,028    $598,031    $146,997 
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $519,348    $464,091    $55,257 
    Income taxes   ($200,477)   $115,154    ($315,631)
             
             
             

EX-99 3 a06606992.htm

Entergy
639 Loyola Avenue
New Orleans, LA  70113

   
Date: October 31, 2006

For Release:

Immediately

Contact:

Yolanda Pollard (News Media)
(504) 576-4238
ypollar@entergy.com

Michele Lopiccolo (Investor Relations)
(504) 576-4879
mlopicc@entergy.com

Exhibit 99.2

Entergy Reports Third Quarter Earnings

New Orleans, La. - Entergy Corporation (NYSE:ETR) today reported third quarter 2006 as-reported earnings of $388.9 million, or $1.83 per share, compared with $350.0 million, or $1.65 per share, for third quarter 2005. On an operational basis, Entergy's third quarter 2006 earnings were $382.6 million, or $1.80 per share, compared with $357.1 million, or $1.68 per share, in third quarter 2005. Entergy had indicated in its preliminary third quarter earnings guidance release of October 17, 2006 that it expected third quarter as-reported earnings of approximately $1.86 per share and operational earnings of approximately $1.83 per share. Entergy's final as-reported and operational earnings are lower due to a charge for a regulatory decision rendered by the Federal Energy Regulatory Commission on October 25, 2006.

Entergy Corporation Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures

Third Quarter and Year-to-Date 2006 vs. 2005

(Per share in U.S. $)

 

Third Quarter

Year-to-Date

 

2006

2005

Change

2006

2005

Change

As-Reported Earnings

1.83

1.65

0.18

4.08

3.75

0.33

Less Special Items

0.03

(0.03)

0.06

0.16

(0.05)

0.21

Operational Earnings

1.80

1.68

0.12

3.92

3.80

0.12

*GAAP refers to United States generally accepted accounting principles.

 

Operational Earnings Highlights for Third Quarter 2006

    • Utility, Parent & Other had lower earnings due to higher operation and maintenance expense, higher interest expense, lower interest income, and a regulatory charge recorded during the quarter.
    • Entergy Nuclear earnings increased as a result of higher revenue due to higher energy pricing, the effect of the uprate completed at Vermont Yankee, fewer outages, and a reduction in its decommissioning liability.
    • Entergy's Non-Nuclear Wholesale Assets business had higher results due to reduced costs and the return to service of a plant previously idle for repair.

"Over the coming months, we expect to resolve uncertainties and financial stress created by the 2005 hurricanes, while demonstrating that even in the most adverse conditions it is still possible to create value for all stakeholders," said J. Wayne Leonard, Entergy's chairman and chief executive officer. "For customers that means affordable rates and a high level of service and for shareholders it includes superior performance in returning or investing capital."

Other Highlights

    • Entergy Mississippi received $81 million in Community Development Block Grant funding providing direct relief to Mississippi customers, while the Louisiana Recovery Authority proposed $200 million in CDBG funding for Entergy New Orleans to assist customers of that company.
    • Entergy New Orleans filed its Plan of Reorganization and reached agreement on a phased-in rate plan, major milestones in its path out of Chapter 11 Bankruptcy.
    • Arkansas Nuclear One Unit 2 completed a record-setting breaker-to-breaker run of 527 days of continuous operation, a first for an Entergy-owned nuclear unit.
    • Entergy Nuclear achieved a 99 percent capacity factor for third quarter 2006.
    • Entergy was named to the Dow Jones Sustainability Index for the fifth year in a row and was the only U.S. utility named to the Dow Jones Sustainability Index - - World this year.

Utility, Parent & Other

In third quarter 2006, Utility, Parent & Other recorded as-reported earnings of $285.9 million, or $1.35 per share, compared to earnings of $285.8 million, or $1.35 per share, in third quarter 2005. On an operational basis, earnings were $279.6 million, or $1.32 per share, in third quarter 2006, compared to $292.9 million, or $1.38 per share, in third quarter 2005. As-reported 2006 earnings reflect three cents per share in special items and primarily reflect earnings at Entergy New Orleans as results from the discontinued competitive retail business in Texas were immaterial. The third quarter 2005 special item of three cents per share reflected the operating loss from the discontinued competitive retail business in Texas. Entergy sold its customer base in the retail business in April 2006.

Earnings for Utility, Parent & Other in third quarter 2006, excluding Entergy New Orleans, primarily reflect higher operation and maintenance expense, higher interest expense due to debt incurred to pay for storm restoration costs for Hurricanes Katrina and Rita, and lower interest income. In addition, a regulatory charge in connection with a Federal Energy Regulatory Commission decision issued subsequent to the end of the quarter also contributed to lower earnings in the current period. Partially offsetting these factors were higher revenues from sales growth and the effects of constructive rate actions over the past year, and lower income tax expense.

Excluding Entergy New Orleans, megawatt-hour sales in the residential sector in third quarter 2006, on a weather-adjusted basis, were up one percent, compared to third quarter 2005. Commercial and governmental sales, after adjusting for weather, were up two percent, compared to the prior quarter. Industrial sales experienced an increase of four percent in third quarter 2006, compared to the same period a year ago.

The increases in the residential segment and the commercial and governmental segment reflect growth primarily at Entergy Louisiana and Entergy Mississippi. Sales for third quarter 2006 in these jurisdictions reflect some recovery from the effect of storms which reduced sales in the third quarter of 2005, although the recovery at Entergy Louisiana has been slower than expected. The quarter over quarter increase in the industrial sector also reflects some rebound from the effect of storms in third quarter 2005. However, the recovery in the industrial segment has also been slower than expected and is being hampered by high energy prices, particularly in the chemical sector, as well as lingering storm outages and a mild winter that affected the pipeline sector.

Entergy New Orleans' results for third 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 third quarter 2005, Utility, Parent & Other results include Entergy New Orleans on both as-reported and operational bases. Also, Entergy New Orleans is de-consolidated for both third quarter 2006 and third quarter 2005 reporting purposes due to uncertainties surrounding the nature, timing, and specifics of the Entergy New Orleans bankruptcy proceedings.

To ensure continued progress in restoring power and gas service to New Orleans after Hurricane Katrina, on September 23, 2005, Entergy New Orleans filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Entergy New Orleans filed a Plan of Reorganization with the bankruptcy court on October 23, 2006 and believes the filing is a significant step forward for all parties involved in the bankruptcy proceeding with a plan that is workable, fair, and in the public interest. For more information on documents filed in this proceeding, including the Plan of Reorganization, go to www.entergy.com/investor_relations/enoi. Accordingly, revenue and expense explanations provided above exclude the revenues and expenses of Entergy New Orleans.

Entergy New Orleans' results for third quarter 2006 reflect earnings of three cents per share. In third quarter 2005, Entergy New Orleans also earned three cents per share. Third quarter 2005 results reflect a normal operating environment for Entergy New Orleans for nearly two months of the quarter, prior to Hurricane Katrina. Subsequent to the hurricane, Entergy New Orleans experienced significant reductions in operating revenues due to customer losses. Third quarter 2006 results reflect the ongoing effects of the hurricane as well as certain actions taken by Entergy New Orleans specific to its continuing effort to stabilize the company's financial condition. 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. Current results also reflect lowe r interest expense due to a reduction in interest accrued on first mortgage bonds. Interest had not been accrued for a year as a result of an agreement among bondholders and Entergy New Orleans in the Chapter 11 bankruptcy proceeding. Entergy New Orleans resumed accruing interest late in third quarter 2006.

Entergy Nuclear

Entergy Nuclear earned $106.9 million, or 50 cents per share, on both as-reported and operational bases in third quarter 2006. This compares to as-reported and operational earnings of $69.3 million, or 33 cents per share, in third quarter 2005. The improved results in third quarter 2006 came from a combination of higher pricing, increased generation available due to the Vermont Yankee uprate and fewer outages, and the effect of a reduction in the decommissioning liability. Partially offsetting these contributions was higher operation and maintenance expense due to higher benefits and insurance expenses.

Non-Nuclear Wholesale Assets

Entergy's non-nuclear wholesale assets business recorded a loss of $3.9 million, or two cents per share, on both as-reported and operational bases in third quarter 2006. As-reported and operational results in third quarter 2005 were a loss of $5.1 million, or three cents per share. The improved results were primarily attributable to reduced costs and the return to service of the Harrison County unit which had been idle for repairs.

Outlook

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. Entergy is initiating 2007 earnings guidance in the range of $5.40 to $5.70 per share on both as-reported and operational bases. Earnings guidance ranges exclude Entergy New Orleans given the uncertainty that remains for this business as it works through the process of gaining approval for its Plan of Reorganization filed on October 23, 2006 in connection with its Chapter 11 Bankruptcy proceeding. During 2006, actual results for Entergy New Orleans are being separately identified as a special item for earnings release purposes.

Entergy Corporation is an integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the third-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues of more than $10 billion and approximately 14,000 employees.

Additional information regarding Entergy's quarter and year-to-date results of operations, regulatory proceedings, and other operations is available in Entergy's investor news release dated October 31, 2006, a copy of which has been filed today with the Securities Exchange Commission on Form 8-K and is available on Entergy's investor relations Web site at www.entergy.com/investor_relations.

-30-

In this release and from time to time, Entergy Corporation 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 Corporation 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 Corporation 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 (in addition to the risk factors in the Form 10-K as well a s others described in the Form 10-Q for Entergy Corporation and its affiliates and in subsequent securities filings) include: 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 the Entergy System Agreement, Entergy's utilities' supply plan, recovery of storm costs, and recovery of fuel and purchased power costs, Entergy's utilities' ability to manage its operation and maintenance costs, the performance of Entergy's Uitility and non-utility 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's utilities must purchase for the ir customers, and Entergy's utilities' ability to meet credit support requirements for fuel and power supply contracts, Entergy Corporation'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 Corporation'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 Corporation'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, includi ng 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 the areas served by Entergy's utilities, 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 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, n itrogen, carbon, mercury, and other substances, the economic climate, particularly growth in the areas served by Entergy's utilities, 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 utilities' 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 Corporation's strategies to reduce tax payments, the effects of litigation and government investigations, changes in accounting standards, corporate governance, and securities law requirements, Entergy Corporation's ability to attract and retain talented manag ement and directors.

 

 

 

Appendix A provides a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.

Appendix A: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
Third Quarter 2006 vs. 2005

(Per share in U.S. $)

 

Third Quarter

Year-to-Date

 

2006

2005

Change

2006

2005

Change

As-Reported

Utility, Parent & Other

1.35

1.35

-

2.89

2.81

0.08

Entergy Nuclear

0.50

0.33

0.17

1.19

0.95

0.24

Non-nuclear wholesale assets

(0.02)

(0.03)

0.01

-

(0.01)

0.01

  Consolidated As-Reported Earnings

1.83

1.65

0.18

4.08

3.75

0.33

Less Special Items

Utility, Parent & Other

0.03

(0.03)

0.06

0.16

(0.05)

0.21

Entergy Nuclear

-

-

-

-

-

-

Non-nuclear wholesale assets

-

-

-

-

-

-

  Consolidated Special Items

0.03

(0.03)

0.06

0.16

(0.05)

0.21

Operational

Utility, Parent & Other

1.32

1.38

(0.06)

2.73

2.86

(0.13)

Entergy Nuclear

0.50

0.33

0.17

1.19

0.95

0.24

Non-nuclear wholesale assets

(0.02)

(0.03)

0.01

-

(0.01)

0.01

  Consolidated Operational Earnings

1.80

1.68

0.12

3.92

3.80

0.12

 

Entergy Corporation

Consolidated Income Statement

Three Months Ended September 30

(in thousands)

2006

2005

% Inc/(Dec)

(unaudited)

Operating Revenues:

  Domestic electric

$2,761,124 

$2,490,265 

10.9 

  Natural gas

12,495 

12,343 

1.2 

  Competitive businesses

481,100 

395,650 

21.6 

     Total

3,254,719 

2,898,258 

12.3 

Operating Expenses:

  Operation and maintenance:

    Fuel, fuel-related expenses, and gas purchased for resale

987,558 

607,307 

62.6 

    Purchased power

607,777 

748,552 

(18.8)

    Nuclear refueling outage expenses

43,045 

41,432 

3.9 

    Other operation and maintenance

590,992 

490,483 

20.5 

  Decommissioning

36,933 

35,056 

5.4 

  Taxes other than income taxes

133,527 

98,717 

35.3 

  Depreciation and amortization

232,042 

217,215 

6.8 

  Other regulatory (credits) - - net

(21,563)

5,156 

(518.2)

     Total

2,610,311 

2,243,918 

16.3 

Operating Income

644,408 

654,340 

(1.5)

Other Income:

  Allowance for equity funds used during construction

7,721 

5,894 

31.0 

  Interest and dividend income

37,720 

50,564 

(25.4)

  Equity in earnings (loss) of unconsolidated equity affiliates

14,772 

8,419 

75.5 

  Miscellaneous - net

30,964 

(10,377)

398.4 

     Total

91,177 

54,500 

67.3 

Interest and Other Charges:

  Interest on long-term debt

125,907 

111,101 

13.3 

  Other interest - net

15,035 

18,679 

(19.5)

  Allowance for borrowed funds used during construction

(4,538)

(6,516)

(30.4)

     Total

136,404 

123,264 

10.7 

Income From Continuing Operations Before Income Taxes

599,181 

585,576 

2.3 

Income Taxes

202,437 

222,080 

(8.8)

Income From Continuing Operations

396,744 

363,496 

9.1 

Loss From Discontinued Operations (net of taxes of ($563) and ($3,823))

(1,050)

(7,108)

85.2 

Consolidated Net Income

395,694 

356,388 

11.0 

Preferred dividend requirements of subsidiaries and other

6,811 

6,436 

5.8 

Earnings Applicable to Common Stock

$388,883 

$349,952 

11.1 

Earnings Per Average Common Share (from continuing operations):

  Basic

$1.87 

$1.71 

9.4 

  Diluted

$1.83 

$1.68 

8.9 

Loss Per Average Common Share (from discontinued operations):

  Basic

 - 

($0.03)

100.0 

  Diluted

($0.03)

100.0 

Earnings Per Average Common Share:

  Basic

$1.87 

$1.68 

11.3 

  Diluted

$1.83 

$1.65 

10.9 

Average Number of Common Shares Outstanding - Basic

208,382,863 

207,906,762 

Average Number of Common Shares Outstanding - Diluted

212,404,770 

212,335,619 

Entergy Corporation

Consolidated Income Statement

Nine Months Ended September 30

(in thousands)

2006

2005

% Inc/(Dec)

(unaudited)

Operating Revenues:

  Domestic electric

$7,031,771 

$6,236,949 

12.7

  Natural gas

63,522 

51,729 

22.8

  Competitive businesses

1,355,961 

1,165,153 

16.4

     Total

8,451,254 

7,453,831 

13.4

Operating Expenses:

  Operation and maintenance:

    Fuel, fuel-related expenses, and gas purchased for resale

2,489,347 

1,525,652 

63.2

    Purchased power

1,646,555 

1,788,736 

(7.9)

    Nuclear refueling outage expenses

127,584 

120,393 

6.0

    Other operation and maintenance

1,693,657 

1,552,858 

9.1

  Decommissioning

108,787 

108,579 

0.2

  Taxes other than income taxes

327,995 

284,349 

15.3

  Depreciation and amortization

655,374 

637,156 

2.9

  Other regulatory (credits) - - net

(124,509)

(44,814)

177.8

     Total

6,924,790 

5,972,909 

15.9

Operating Income

1,526,464 

1,480,922 

3.1

Other Income:

  Allowance for equity funds used during construction

32,088 

29,414 

9.1

  Interest and dividend income

116,689 

115,621 

0.9

  Equity in earnings (loss) of unconsolidated equity affiliates

26,843 

22,012 

21.9

  Miscellaneous - net

16,793 

4,599 

265.1

     Total

192,413 

171,646 

12.1

Interest and Other Charges:

  Interest on long-term debt

369,058 

324,149 

13.9

  Other interest - net

47,532 

43,436 

9.4

  Allowance for borrowed funds used during construction

(18,989)

(19,790)

(4.0)

     Total

397,601 

347,795 

14.3

Income From Continuing Operations Before Income Taxes

1,321,276 

1,304,773 

1.3

Income Taxes

444,170 

466,172 

(4.7)

Income From Continuing Operations

877,106 

838,601 

4.6

Loss From Discontinued Operations (net of taxes of $5,423 and ($6,057))

9,830 

(11,286)

187.1

Consolidated Net Income

886,936 

827,315 

7.2

Preferred dividend requirements of subsidiaries and other

22,622 

19,217 

17.7

Earnings Applicable to Common Stock

$864,314 

$808,098 

7.0

Earnings Per Average Common Share (from continuing operations):

  Basic

$4.11 

$3.88 

5.9

  Diluted

$4.03 

$3.80 

6.1

Loss Per Average Common Share (from discontinued operations):

  Basic

$0.05 

($0.05)

200.0

  Diluted

$0.05 

($0.05)

200.0

Earnings Per Average Common Share:

  Basic

$4.16 

$3.83 

8.6

  Diluted

$4.08 

$3.75 

8.8

Average Number of Common Shares Outstanding - Basic

208,034,946 

211,033,829 

Average Number of Common Shares Outstanding - Diluted

211,782,858 

215,540,185 

 

Entergy Corporation

Utility Electric Energy Sales & Customers
Entergy New Orleans De-consolidated

Three Months Ended September 30

2006

2005

%
Change

%
Weather-Adjusted

(Millions of kwh)

Electric Energy Sales:

Residential

10,772

10,630

1.3

1.1

Commercial

7,484

7,301

2.5

2.4

Governmental

436

424

2.8

2.8

Industrial

10,154

9,736

4.3

4.3

   Total to Ultimate Customers

28,846

28,091

2.7

2.6

Wholesale

2,894

3,184

(9.1)

   Total Sales

31,740

31,275

1.5

Nine Months Ended September 30

2006

2005

%
Change

%
Weather-Adjusted

(Millions of kwh)

Electric Energy Sales:

Residential

24,769

24,358

1.7

1.7

Commercial

19,078

18,507

3.1

2.4

Governmental

1,195

1,184

0.9

0.9

Industrial

28,768

28,837

(0.2)

(0.2)

   Total to Ultimate Customers

73,810

72,886

1.3

1.1

Wholesale

8,471

8,811

(3.9)

   Total Sales

82,281

81,697

0.7

September 30

2006

2005

%
Change

Electric Customers (End of period):

Residential

2,141,492

2,085,413

2.7

Commercial

305,469

301,602

1.3

Governmental

13,450

12,745

5.5

Industrial

47,800

46,591

2.6

   Total Ultimate Customers

2,508,211

2,446,351

2.5

Wholesale

31

34

(8.8)

   Total Customers

2,508,242

2,446,385

2.5

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.

EX-99 4 a06606993.htm

Exhibit 99.3

STATEMENT ON USES AND USEFULNESS OF NON-GAAP FINANCIAL MEASURES

Exhibits 99.1 and 99.2 to this Report on Form 8-K (the "Earnings Releases"), contain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or GAAP. Pursuant to the requirements of Regulation G, Entergy has provided quantitative reconciliations within the Earnings Releases and the presentation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Certain non-GAAP measures in the Earnings Releases differ from GAAP only in that the figure or ratio states or includes operational earnings per share. Operational earnings per share is presented for each of Entergy's major business segments as well as on a consolidated basis. Operational earnings per share is not calculated in accordance with GAAP because it excludes the effect of "special items". Special items reflect the effect on earnings of events that are less routine, are related to prior periods, or are related to discontinued businesses. In addition, other financial measures including return on average invested capital (ROIC), return on average common equity (ROE), and net margin - operational are included on both an operational and as-reported basis. In each case, the metrics defined as "operational" exclude the effect of special items as defined above. Management believes financial metrics calculated using operational earnings provides useful information to investors in evaluating the ong oing results of Entergy's businesses and assists investors in comparing the company's operating performance to the operating performance of others in the energy sector. Entergy management frequently references these non-GAAP financial measures in its decision-making, using them to facilitate historical and ongoing performance comparisons as well as comparisons to the performance of peer companies.

Other non-GAAP measures, total gross liquidity, net debt to net capital ratio, net debt ratio including off-balance sheet liabilities, free cash flow and net cash available for new investment, debt or equity repayment, dividend increase, are measures Entergy uses internally for management and board discussions, and cash budgeting and performance monitoring activities to gauge the overall strength of its business. Free cash flow, as defined by Entergy, is net cash flow provided by operating activities, a GAAP measure, reduced by cash requirements for nuclear fuel purchases and decommissioning trust fund contributions, planned maintenance capital expenditures, and estimated preferred dividends, and does not consider other potential demands on cash such as mandatory debt service requirements. Entergy believes the above data provides useful information to investors in evaluating Entergy's ongoing financial flexibility, and assists investors in comparing the company's cash availability to the cash availabili ty of others in the energy sector.

The non-GAAP financial measures and other reported adjusted items in Entergy's Earnings Releases are used in addition to, and in conjunction with, results presented in accordance with GAAP.  These non-GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures.  These non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting our business.  Investors are strongly encouraged to review our consolidated financial statements and publicly filed reports in their entirety and to not rely on any single financial measure.  Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

 

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-----END PRIVACY-ENHANCED MESSAGE-----