EX-99 2 a01208991.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

April 25, 2008

ENTERGY REPORTS FIRST QUARTER EARNINGS

NEW ORLEANS - Entergy Corporation reported first quarter 2008 earnings of $1.56 per share on as-reported and operational bases, as shown in Table 1 below. A more detailed discussion of quarterly results begins on page 2 of this release.

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

First Quarter 2008 vs. 2007

(Per share in U.S. $)

2008

2007

Change

As-Reported Earnings

1.56

1.03

0.53

Less Special Items

-

-

-

Operational Earnings

1.56

1.03

0.53

Weather Impact

(0.03)

(0.02)

(0.01)

Operational Earnings Highlights for First Quarter 2008

  • Utility, Parent & Other had higher earnings due primarily to increased revenues.
  • Entergy Nuclear earnings increased as a result of higher power prices and additional production from the Palisades plant acquired in second quarter 2007.
  • Entergy's Non-Nuclear Wholesale Assets business reported results approximately the same as first quarter 2007.

"We have established aggressive goals for 2008 and while it's early in the year, we are on track for a year of solid accomplishments," said J. Wayne Leonard, Entergy's chairman and chief executive officer. "Operating results for the quarter reflect strong business performance even as we resource considerable tasks necessary to create a new public company required by the spin-off of our non-utility nuclear business."

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
4
5
IV. Earnings Guidance 5
V. Business Separation
VI. Appendices
A.  Spin-Off of Non-Utility Nuclear Business
B.  Variance Analysis and Special Items
C.  Regulatory Summary
D.  Financial Performance Measures and
      Historical Performance Measures
E.  Planned Capital Expenditures
F.  Definitions
G.  GAAP to Non-GAAP Reconciliations

9
12
13
16

18
19
21
VII. Financial Statements 24

Entergy's business highlights include the following:

  • The CRO (Corporate Responsibility Officer) magazine named Entergy Corporation to its 100 Best Corporate Citizen's list for 2008 for its corporate responsibility efforts in eight categories including climate change, employee relations, environment, financial, governance, human rights, lobbying, and philanthropy.
  • Entergy was again among America's Most Trustworthy Companies according to Forbes.com's annual listing, making the list for its accounting transparency and governance practices.
  • Entergy Gulf States Louisiana, L.L.C. completed the acquisition of the Calcasieu facility, two simple cycle gas-fired units that add 322 MW of quick-start capacity for Entergy's WOTAB region.

Entergy's senior management will host its 2008 Analyst Conference on April 25, 2008 in New Orleans to discuss quarterly results and other business matters with investors. In addition, Entergy will webcast its analyst meeting including a presentation by Chief Financial Officer Leo Denault, who will review quarterly results in his presentation. The analyst meeting webcast is scheduled to begin at 7:30 a.m. CT, and will conclude with Denault's presentation scheduled for approximately 11 a.m. CT. The webcast and presentation slides can be accessed via Entergy's Web site at www.entergy.com.

Consolidated Results

Consolidated Earnings

Table 2 provides a comparative summary of consolidated earnings per share for first quarter 2008 versus 2007, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. Utility, Parent & Other had higher earnings due to increased revenues. Entergy Nuclear's earnings increased as a result of higher power prices and additional production from the Palisades plant acquired in second quarter 2007 and fewer outage days. These items were partially offset by higher expense primarily associated with including Palisades in the portfolio. Entergy's Non-Nuclear Wholesale Assets business reported results which were approximately the same as first quarter 2007. Entergy's results for the current period also reflect the positive effect of accretion associated with the company's share repurchase program.

Table 2: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2008 vs. 2007 (see appendix F for definitions of certain measures)

(Per share in U.S. $)

 

First Quarter

 

2008

2007

Change

As-Reported

Utility, Parent & Other

0.48

0.44

0.04

Entergy Nuclear

1.12

0.62

0.50

Non-Nuclear Wholesale Assets

(0.04)

(0.03)

(0.01)

   Consolidated As-Reported Earnings

1.56

1.03

0.53

Less Special Items

Utility, Parent & Other

-

-

-

Entergy Nuclear

-

-

-

Non-Nuclear Wholesale Assets

-

-

-

   Consolidated Special Items

-

-

-

Operational

Utility, Parent & Other

0.48

0.44

0.04

Entergy Nuclear

1.12

0.62

0.50

Non-Nuclear Wholesale Assets

(0.04)

(0.03)

(0.01)

   Consolidated Operational Earnings

1.56

1.03

0.53

Weather Impact

(0.03)

(0.02)

(0.01)

Detailed earnings variance analysis is included in appendix B to this release.

Consolidated Net Cash Flow Provided by Operating Activities

Entergy's net cash flow provided by operating activities in first quarter 2008 was $448 million compared to $493 million in first quarter 2007. The decrease was due primarily to reduced collections at the Utility of deferred fuel recovery in the current quarter totaling $350 million partially offset by changes in net payables/receivables of $226 million and higher net revenues at Entergy Nuclear of $185 million.

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

Table 3: Consolidated Net Cash Flow Provided by Operating Activities

First Quarter 2008 vs. 2007

(U.S. $ in millions)

First Quarter

2008

2007

Change

Utility, Parent & Other

123

277

(154)

Entergy Nuclear

340

216

124

Non-Nuclear Wholesale Assets

(15)

-

(15)

   Total Net Cash Flow Provided by Operating Activities

448

493

(45)

II. Utility, Parent & Other Results

In first quarter 2008, Utility, Parent & Other had earnings of $0.48 per share on as-reported and operational bases, compared to $0.44 per share in as-reported earnings and operational earnings in first quarter 2007. Earnings for Utility, Parent & Other in first quarter 2008 reflect higher revenues from sales growth and the absence of a regulatory charge taken in first quarter 2007 partially offset by higher operation and maintenance expense. The higher expense reflects the timing of fossil outages and storm damages expensed at Entergy Arkansas, Inc.

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

  • Residential sales in first quarter 2008, on a weather-adjusted basis, showed a 3 percent increase compared to first quarter 2007.
  • Commercial and governmental sales, on a weather-adjusted basis, were up 2 percent.
  • Industrial sales in the current quarter were up 1 percent compared to the same period one year ago.

The residential sales sector showed an increase quarter to quarter with the most significant increase at Entergy New Orleans, Inc., where post-storm recovery continues. An increase in the number of customers also contributed to sales growth in the residential sector as well as the commercial and governmental sectors. Sales in the industrial sector for first quarter 2008 increased compared to the same quarter of 2007. High utilization in the refining and chemical segments is contributing to increased sales while the housing market is putting negative pressure on the building-related industries. Also, efficiency improvement driven by high energy prices is producing declining sales in some areas.

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

Table 4: Utility Operational Performance Measures

First Quarter 2008 vs. 2007 (see appendix F for definitions of measures)

 

First Quarter

 

2008

2007

% Change

% Weather Adjusted

GWh billed

  Residential

8,011

7,792

2.8%

3.3%

  Commercial and governmental

6,807

6,665

2.1%

1.9%

  Industrial

9,377

9,323

0.6%

0.6%

    Total Retail Sales

24,195

23,780

1.7%

1.9%

  Wholesale

1,290

1,638

-21.2%

    Total Sales

25,485

25,418

0.3%

O&M expense

$17.26

$16.83

2.5%

Number of retail customers (a)

  Residential

2,297,765

2,268,152

1.3%

  Commercial & governmental

341,066

336,764

1.3%

  Industrial

40,860

42,628

-4.1%

  1. 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.

Entergy Nuclear

Entergy Nuclear earned $1.12 per share on as-reported and operational bases in first quarter 2008, compared to $0.62 in first quarter 2007 for as-reported and operational earnings. Entergy Nuclear's earnings increased as a result of higher power prices and additional production from the Palisades plant acquired in second quarter 2007 and fewer outage days. These items were partially offset by higher expense primarily associated with including Palisades in the portfolio.

Table 5 provides a comparative summary of Entergy Nuclear's operational performance measures.

Table 5: Entergy Nuclear Operational Performance Measures

First Quarter 2008 vs. 2007 (see appendix F for definitions of measures)

 

First Quarter

 

2008

2007

% Change

Net MW in operation (b)

4,998

4,200

19%

Average realized price per MWh

$61.47

$55.11

12%

Production cost per MWh

$19.98

$19.66

2%

Non-fuel O&M expense/purchased power per MWh

$20.20

$20.76

-3%

GWh billed

10,760

8,315

29%

Capacity factor

97%

91%

7%

Refueling outage days:

   Indian Point 2

7

-

   Indian Point 3

-

24

  1. Palisades was acquired in April 2007.

Entergy Nuclear's sold forward position is 92%, 83%, and 59% of planned generation at average prices per megawatt-hour of $54, $61 and $58, for 2008, 2009, and 2010, respectively. Table 6 provides capacity and generation sold forward projections for Entergy Nuclear.

Table 6: Entergy Nuclear's Capacity and Generation Projected Sold Forward

2008 through 2012 (see appendix F for definitions of measures)

 

Remainder of
2008

2009

2010

2011

2012

Energy

Planned TWh of generation

31

41

40

41

41

Percent of planned generation sold forward (c)

  Unit-contingent

49%

48%

31%

29%

16%

  Unit-contingent with availability guarantees

38%

35%

28%

14%

7%

  Firm liquidated damages

5%

0%

0%

0%

0%

  Total

92%

83%

59%

43%

23%

Average contract price per MWh

$54

$61

$58

$55

$51

Capacity

Planned net MW in operation

4,998

4,998

4,998

4,998

4,998

Percent of capacity sold forward

  Bundled capacity and energy contracts

26%

27%

26%

27%

19%

  Capacity contracts

63%

38%

31%

15%

2%

  Total

89%

65%

57%

42%

21%

Average capacity contract price per kW per month

$2.0

$2.0

$3.4

$3.7

$3.5

Blended Capacity and Energy Recap (based on revenues)

Percent of planned energy and capacity sold forward

88%

78%

52%

35%

16%

Average contract revenue per MWh (d)

$56

$62

$61

$57

$52

 

  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.

Non-Nuclear Wholesale Assets

Entergy's Non-Nuclear Wholesale Assets business incurred a loss of $(0.04) per share on both as-reported and operational bases in first quarter 2008 compared to a loss of $(0.03) per share on as-reported and operational bases in first quarter 2007.

IV. Earnings Guidance

Entergy is reaffirming 2008 earnings guidance in the range of $6.50 to $6.90 per share on both as-reported and operational bases on a business as usual basis. Guidance for 2008 does not include a special item for expenses anticipated in connection with the plan to pursue separation of Entergy's non-utility nuclear business and to enter into a nuclear services joint venture, both discussed below and in Appendix A. Year-over-year changes are shown as point estimates and are applied to 2007 actual results to compute the 2008 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. 2008 earnings guidance is detailed in Table 7 below.

 

Table 7: 2008 Earnings Per Share Guidance - As Reported and Operational

(Per share in U.S. $) - Prepared November 2007 (e)

 

Segment

 

Description of Drivers

2007 Earnings Per Share

Expected Change

2008
Guidance
Midpoint

2008 Guidance Range

Utility, Parent & Other

2007 Operational Earnings per Share

2.74

Adjustment to normalize weather

(0.11)

Increased revenue due to sales growth and rate actions

0.35

Decreased O&M expense

0.10

Increased depreciation expense

(0.10)

Decreased interest expense

0.05

Decreased other income

(0.10)

Accretion

0.10

Decreased income taxes/other

0.32

Subtotal

2.74

0.61

3.35

Entergy Nuclear

2007 Operational Earnings per Share

2.75

Higher contract and market energy pricing

0.80

Increased generation from plant acquisition and fewer outages

0.45

Increased O&M expense

(0.25)

Increased depreciation expense

(0.12)

Accretion

0.10

Increased income taxes/other

(0.33)

Subtotal

2.75

0.65

3.40

Non-Nuclear Wholesale Assets

2007 Operational Earnings per Share

0.27

Increased income taxes

(0.32)

Subtotal

0.27

(0.32)

(0.05)

Consolidated
Operational

2008 Operational Earnings per Share

5.76

0.94

6.70

6.50 - 6.90

Consolidated

2007 As-Reported Earnings per Share

5.60

As-Reported

Changes detailed above

0.94

Nuclear alignment

0.16

2008 As-Reported

5.60

1.10

6.70

6.50 - 6.90

  1. Updated January 2008 to reflect 2007 final results.

Key assumptions supporting 2008 earnings guidance are as follows:

Utility, Parent & Other

  • Normal weather
  • Retail sales growth of roughly 2%
  • Increased revenue associated with rate actions
  • Decreased non-fuel operation and maintenance expense, primarily due to higher discount rate on benefit plans, absence of minimum bill write-offs, and lower storm reserves
  • Increased depreciation associated with rate base growth
  • Decreased interest expense as a result of receiving proceeds from Louisiana storm securitization, net of effects on interest expense of other financings
  • Decreased other income due primarily to absence of 2007 carrying costs reflected for storm settlements
  • Decreased income taxes associated with absence of the 2007 fourth quarter income tax adjustments

Entergy Nuclear

  • 41 TWh of total output, reflecting an approximate 94% capacity factor, including 30 day refueling outages at Indian Point 2 in Spring 2008, and FitzPatrick and Vermont Yankee, both in Fall 2008
  • 91% energy sold under existing contracts; 9% sold into the spot market (Additional sales after guidance was issued increased sold forward position to 92%)
  • $54/MWh average energy contract price; $69/MWh average unsold energy price based on published market prices in October 2007
  • $22.10/MWh non-fuel operation and maintenance expense/purchased power with increase primarily due to full year of Palisades operation (acquired mid April 2007); $21.30/MWh production cost
  • Increased depreciation due to continued investment in nuclear fleet and full year of Palisades operation
  • Increased income tax expense associated with absence of the 2007 fourth quarter income tax adjustments, a change in New York state tax law and the step-up in tax basis from restructuring the Indian Point 2 non-qualified decommissioning trust fund

Non-Nuclear Wholesale Assets

  • Increased income tax associated with the absence of the 2007 fourth quarter income tax adjustments, favorable resolution of tax audit issues, and benefits associated with project restructurings

Share Repurchase Program

  • 2008 average fully diluted shares outstanding of approximately 197 million

Special Items

  • Absence of 2007 nuclear alignment charge

Earnings guidance for 2008 should be considered in association with earnings sensitivities as shown in Table 8. These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers. Utility sales are expected to be the most significant variable for 2008 results for Utility, Parent & Other. At Entergy Nuclear, energy prices are expected to be the most significant driver of results in 2008. Estimated annual impacts shown in Table 8 are intended to be indicative rather than precise guidance.

Table 8: 2008 Earnings Sensitivities

(Per share in U.S. $)


Variable


2008 Guidance Assumption


Description of Change

Estimated
Annual Impact
(f)

Utility, Parent & Other

Sales growth
  Residential
  Commercial/Governmental
  Industrial


Roughly 2% total sales growth


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


- / + 0.05
- / + 0.04
- / + 0.03

Rate base

Stable rate base

$100 million change in rate base

- / + 0.03

Return on equity

See Appendix C

1% change in allowed ROE

- / + 0.31

Entergy Nuclear

Capacity factor

94% capacity factor

1% change in capacity factor

- / + 0.07

Energy price

9% energy unsold at $69/MWh in 2008

$10/MWh change for unsold energy

- / + 0.12

Non-fuel operation and maintenance expense

$22.10/MWh non-fuel operation and maintenance expense/purchased power

$1 change per MWh

- / + 0.13

Outage (lost revenue only)

94% capacity factor, including refueling outages for three northeast units

1,000 MW plant for 10 days at average portfolio energy price of $54/MWh for sold and $69/MWh for unsold volumes in 2008

- 0.04 / n/a

  1.  Based on actual 2007 average fully diluted shares outstanding of approximately 203 million.

V. Business Separation

On November 3, 2007, Entergy's Board of Directors approved a plan to pursue a separation of the non-utility nuclear business from Entergy's regulated utility business through a tax-free spin-off of the non-utility nuclear business. Enexus Energy Corporation, formerly referred to as SpinCo, will be a new, independent publicly traded company. In addition, Entergy and Enexus intend to enter into a nuclear services joint venture, with equal ownership. EquaGen L.L.C. has been selected as the name for the joint venture.

Entergy is targeting around third quarter 2008 for completion of the spin-off transaction. Progress achieved during the last quarter includes:

  • The steering committee formed last November continues to lead the overall process and make final recommendations on all major business and operational issues; the steering committee's focus shifted from overall framework setting to spin-off implementation during the first quarter
  • The project management office, with a cross-section of organizational functions, continues to coordinate detailed activities necessary to execute the spin-off so that Enexus and EquaGen are fully prepared to commence independent operations post spin
  • Regulatory proceedings continued to advance

    • At the Nuclear Regulatory Commission, Entergy Nuclear Operations, Inc. (ENO) continued to supplement its filing to reflect the spin-off transaction and respond to NRC requests for information; ENO also submitted the necessary filings in the intervention process, including those outlined in a detailed procedural schedule established for the UWUA Local Unions
    • In Vermont, ENO responded to requests for information and public hearings were conducted pursuant to the scheduling order issued by the Vermont Public Service Board for the spin-off proceeding; the VPSB permitted five parties to intervene in the proceeding
    • In New York, the state attorney general and the Office of the County Executive of Westchester County, N.Y. submitted comments to the New York Public Service Commission regarding the spin-off proposal; additional information is being prepared by ENO to respond to the comments submitted to the NYPSC
    • At the Federal Energy Regulatory Commission, the Louisiana Public Service Commission withdrew the only protest filed in the spin-off proceeding
    • At the Internal Revenue Service, Entergy submitted its request for a private letter ruling finding that the spin-off transaction qualifies for tax-free treatment for federal income tax purposes for both Entergy and its shareholders

Additional information on the spin-off including proposed new business structure, leadership teams, business overviews, financial aspirations, and a transaction timeline including regulatory filing status are included in Appendix A of this release.

VI. Appendices

Seven appendices are presented in this section as follows:

  • Appendix A includes information on Entergy's plan to separate the non-utility nuclear business from Entergy's regulated utility business through a tax-free spin-off of the non-utility nuclear business.
  • Appendix B includes earnings per share variance analysis.
  • 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 definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
  • Appendix G provides a reconciliation of GAAP to non-GAAP financial measures used in this release.

Appendix A provides information on Entergy's planned spin-off of its non-utility nuclear business.

Appendix A: Spin-off of Non-Utility Nuclear Business

The announced spin-off of Entergy's non-utility nuclear business will establish two independent, publicly traded companies. Enexus Energy Corporation (formally referred to as SpinCo) has been selected as the name of the new company. In addition, Entergy and Enexus intend to enter into a nuclear services joint venture, with equal ownership. EquaGen L.L.C. has been selected as the name for the joint venture. Below are transaction details and other information on Entergy, Enexus and EquaGen.

New Business Structure

Once the transaction is complete, Entergy Corporation's shareholders will own 100 percent of the common equity in both Entergy and Enexus. Enexus' business is expected to be comprised of the non-utility nuclear assets, including the Pilgrim Nuclear Station in Plymouth, Mass., the James A. FitzPatrick and Indian Point Energy Center plants in Oswego and Buchanan, N.Y., respectively, the Palisades plant in Covert, Mich., and the Vermont Yankee plant in Brattleboro, Vt., and a power marketing operation. Entergy's business will be comprised of the current six regulated utility operating subsidiaries, System Energy Resources, Inc., the related services subsidiaries System Fuels, Inc., Entergy Operations, Inc. and Entergy Services, Inc., and the remaining Entergy subsidiaries. The newly created joint venture, EquaGen, is expected to operate the nuclear assets owned by Enexus. EquaGen is also expected to offer nuclear services to third parties, including decommissioning, plant relicensing and plant operations for Cooper Nuclear Station and others.

The joint venture operating structure for Enexus ensures that the core nuclear operations expertise currently in place at each of the non-utility nuclear plants will remain after the spin-off.  Entergy Nuclear Operations, Inc., the current NRC-licensed operator of the non-utility nuclear plants, is expected to be wholly-owned by EquaGen and will remain the operator of the plants after the separation.  Entergy Operations, Inc., the current NRC-licensed operator of Entergy's utility nuclear plants, will also remain in place as a wholly-owned subsidiary of Entergy and will continue to be the operator of the utility nuclear plants.  The decision to retain the existing operators for the nuclear stations reflects Entergy's commitment to maintaining safety, security and operational excellence.

Leadership Team

The Entergy Board of Directors has approved certain elements of the leadership structure and designated individuals who will fill key board and management roles. The EquaGen Board of Managers will be comprised of equal membership from both Entergy and Enexus. Additional details on the structure and leadership will be made available in the coming months. Those assuming new roles or additional responsibilities include:

Entergy:

Executive Vice President and Chief Operating Officer Mark Savoff; currently serves as Entergy's executive vice president of operations

Enexus:

Non-Executive Chairman Donald C. Hintz; currently serves as chairman of the nuclear committee for the Entergy Board of Directors

Chief Executive Officer Richard Smith; currently serves as Entergy's president and chief operating officer

Chief Operating Officer John R. McGaha; currently serves as president of planning, development and oversight for Entergy Nuclear

EquaGen:

Chief Executive Officer and Chief Nuclear Officer Michael R. Kansler; currently serves as president and chief nuclear officer, Entergy Nuclear

Chief Operating Officer John Herron; currently serves as Entergy senior vice president of nuclear operations

Executive management at Entergy that remains unchanged includes:

  • Chairman and Chief Executive Officer J. Wayne Leonard
  • Executive Vice President and Chief Financial Officer Leo Denault
  • Group President Utility Operations Gary Taylor
  • Executive Vice President of External Affairs Curt Hebert
  • Executive Vice President and General Counsel Robert Sloan
  • Chief Nuclear Officer Michael Kansler

Brief Overview of Each Business

After completion of the business separation, Entergy will consist of the current six electric utility subsidiaries in four contiguous states with generating capacity of more than 22,000 megawatts and 15,000 miles of transmission lines. Entergy will be a customer service-focused electric and gas utility with a unique growth opportunity through its portfolio transformation strategy that benefits customers. The company will deliver electricity to 2.7 million customers in Arkansas, Louisiana, Mississippi, and Texas and will remain headquartered in New Orleans, LA.

Enexus is expected to own nearly 5,000 megawatts of nuclear generation, most of which is located in the northeastern United States. This location has some of the highest average regional power prices in the United States both today and expected into the future through at least 2020. Enexus will be uniquely positioned to provide to the region the only pure-play, emission-free nuclear generation. The company will be headquartered in Jackson, Miss.

EquaGen is expected to be owned 50 percent each by Entergy and Enexus, and expected to have operating responsibility for Enexus' nuclear fleet. As a premier nuclear operator, the joint venture will have broad nuclear experience building and operating boiling and pressurized water reactor technologies. EquaGen is expected to be uniquely positioned to grow through offerings of nuclear operating expertise, as well as ancillary nuclear services to third parties, including plant decommissioning and relicensing. The company will be headquartered in Jackson, Miss.

Financial Aspirations

The companies will continue to aspire to deliver superior value to owners as measured by total shareholder return. The companies believe top-quartile shareholder returns are achieved by growing earnings, delivering returns at or above the risk-adjusted cost of capital, maintaining credit quality and flexibility, and deploying capital in a disciplined manner, whether for new investments, share repurchases, dividends or debt retirements.

Financial aspirations currently in place for Entergy today can be tailored to each of the businesses going forward. Financial aspirations through 2012 include the following:

Top-quartile total shareholder return:

  • Entergy: 6-8% annual earnings per share growth, a 70 to 75% dividend payout ratio target, and capacity for a new share repurchase program targeted at $2.5 billion, $0.5 billion of which has already been authorized by the Entergy Board of Directors, with the balance to be authorized and to commence following completion of spin-off
  • Enexus: $2 billion in earnings before interest, income taxes, depreciation and amortization expense (EBITDA), a non-GAAP financial measure defined in Appendix F, for the existing non-utility nuclear fleet portfolio by 2012, assuming an average power price on open positions of roughly $95/MWh, generating cash flow for acquisitions and/or distributions through share repurchases in the range of $0.5 billion to $1 billion annually

Credit quality and flexibility to manage risk and act on opportunities:

  • Entergy: investment grade credit with a lower risk profile
  • Enexus: strong merchant credit, relative to others (subject to market terms and conditions, Enexus expects to execute roughly $4.5 billion of debt financing)

The amount of repurchases may vary as a result of material changes in business results or capital spending or new investment opportunities.

Transaction Timing

Entergy is targeting around the end of third quarter 2008 as the effective date for the spin-off and joint venture transactions to be completed and expects the transactions to qualify for tax-free treatment for U.S. federal income tax purposes for both Entergy and its shareholders. The transactions are subject to various approvals. Final terms of the transactions and spin-off completion are subject to the subsequent approval of the Entergy Board of Directors. In addition, as Entergy pursues completion of the separation and establishment of the joint venture, Entergy will continue to consider, in conjunction with its financial advisors, possible modifications to and variations upon the transaction structure, including a sponsored spin-off, a partial initial public offering preceding the spin-off or the addition of a third party joint venture partner. Citigroup and Goldman Sachs are serving as Entergy's financial advisors in this process.

Proceeding

Pending Regulatory Approvals

Nuclear Regulatory Commission

Request: Entergy Nuclear Operations, Inc. (ENO) continued to supplement its application originally filed on July 30, 2007, pursuant to Section 184 of the Atomic Energy Act of 1954, as amended, and 10 CFR 50.80. In each of the supplements to the application ENO provided additional information regarding the spin-off transaction while the original application requested that the Nuclear Regulatory Commission (NRC) consent to the indirect transfer of control of Entergy's non-utility nuclear licenses.
Recent Activity: ENO submitted the necessary filings in the intervention process, including those outlined in a detailed procedural schedule established for the Pilgrim UWUA Local Unions. In addition, the NRC will continue to review the application and prepare a Safety Evaluation Report. If a hearing is granted, which Entergy does not anticipate, the NRC would be expected to issue a procedural schedule providing for limited discovery, written testimony and a legislative-type hearing.
Next Steps: NRC will render a decision on Entergy's request, potentially in the second quarter of 2008.
Other Background: A successful petitioner or hearing request must articulate an "admissible contention" in order for a hearing to be granted, i.e., a material disputed issue of fact or law within the narrow scope of the proceeding. Otherwise, the NRC's rules provide that no hearing will be conducted. Hearings are governed by special rules for expedited proceedings applicable to license transfers.

   

Vermont Public Service Board

Request: On January 28, 2008, pursuant to 30 V.S.A. Sections 107, 108, 231 and 232, Entergy Nuclear Vermont Yankee, L.L.C. (EVY) and ENO requested approval from the Vermont Public Service Board (VPSB) for the indirect transfer of control, consent to pledge assets, guarantees and assignments of contracts, amendment to Certificate of Public Good (CPG) to reflect name change, replacement of guaranty and substitution of a credit support agreement.
Recent Activity: On March 7, 2008, the VPSB entered a scheduling order to consider the filing. Public hearings were conducted in April 2008, and the schedule sets forth discovery, testimony, hearing and brief dates. The VPSB also permitted five parties to intervene in the proceeding. Also, currently pending before the Vermont House is Senate bill S373, legislation that would require Entergy to over fund the decommissioning trust fund for Vermont Yankee before the VPSB could issue a CPG approving the spin-off transaction. The bill calls for providing 100 percent of the funds for complete restoration of the site. It is not possible to predict the ultimate form that the proposed legislation might take, its effective date, or its impact on Vermont Yankee, including its pending application for change of control in connection with the spin-off transaction.
Next Steps: Parties will undertake the actions outlined in the scheduling order. Technical hearings are scheduled for July 29 - 31, 2008, with final reply briefs due on August 20, 2008, after which the VPSB will render a decision, potentially in third quarter 2008.
Other Background: Under Vermont law, approval requires a finding that actions promote the general good of the state.

 

 

New York Public Service Commission

Request: On January 28, 2008, pursuant to New York State Public Service Law ( NYPSL) Sections 69 and 70, Entergy Nuclear Fitzpatrick, L.L.C. (ENFP), Entergy Nuclear Indian Point 2 and 3, L.L.C. (ENIP2 & 3), ENO and corporate affiliate Enexus (formerly referred to as NewCo and SpinCo) filed a petition with the New York Public Service Commission (NYPSC) requesting a declaratory ruling regarding corporate reorganization or in the alternative an order approving the transaction and an order approving debt financing. Petitioners also requested confirmation that the corporate reorganization will not have an impact on ENFP's, ENIP2 & 3's, and ENO's status as lightly regulated entities, given they will continue to be competitive wholesale generators.
Recent Activity: In response to notice of filing published by the NYPSC, comments were filed by the Attorney General for the State of New York and the Office of the County Executive of Westchester County, New York.
Next Steps: Additional information is being prepared by ENO to respond to the comments submitted to the NYPSC. The Staff is expected to make a recommendation to the NYPSC as to next steps, but the timing of that recommendation and the response to the recommendation by the NYPSC cannot be predicted.
Other Background: The NYPSC has established a lightened regulatory regime for wholesale generators in New York, including owners and operators of nuclear generating facilities, under which PSL 70 review of changes in ownership is not required. In the Wallkill order, the NYPSC decided that under this lightened regulatory regime, PSL 70 regulation would not adhere to a transfer of ownership interest in parent entities upstream from affiliates owning and operating NY competitive electric generation facilities, unless there was a potential for harm to the interest of captive utility ratepayers sufficient to override the presumption. The NYPSC can issue a declaratory ruling that the Wallkill Presumption applies and the NYPSC need not review the corporate reorganization. If the NYPSC decides to review the corporate reorganization pursuant to PSL 70 that action triggers a review under the State Environmental Quality Review Act (SEQRA). Petitioners maintain that the corporate reorganization will not change the operation of their assets that could cause an adverse environmental effect. Consequently, if PSL 70 review is required, NYPSC should follow precedent, issue a negative declaration and undertake no further environmental review. Approval under Section 70 of the NYPSL requires a finding that actions are in the public interest.

   

Federal Energy Regulatory Commission

Request: On February 21, 2008, ENO filed an application pursuant to the Federal Power Act Section 203 requesting authorization from the Federal Energy Regulatory Commission (FERC) by June 20, 2008 for indirect disposition of the jurisdictional facilities that will occur as a result of the proposed transaction in which ownership of the applicants will be spun-off to a new, publicly traded holding company.
Recent Activity: The Louisiana Public Service Commission withdrew the only protest filed in the spin-off proceeding.
Next Steps: Pursuant to the EPAct of 2005, FERC is expected to act on the application within 6 months of the filing and potentially in second quarter 2008.
Other Background: The review of the filing by FERC will ensure that the transaction will have no adverse effects on competition, wholesale or retail rates and Federal and State Regulation. Also, FERC will seek to determine that the transaction will not result in cross-subsidization by a regulated utility or pledge/encumbrance of utility assets for the benefit of a non-utility associate company.

Securities and Exchange Commission

Request/Recent Activity: Filing preparation is in progress. Target filing date is by mid-May 2008.
Next Steps: Pursuant to Section 12 of the 34 Exchange Act, a Form 10 information statement will be filed to register securities with the Securities and Exchange Commission (SEC). The Form 10 is subject to review and comments by the SEC staff and will need to be declared effective prior to the distribution.
Other Background: The Form 10 will ultimately be furnished in connection with the distribution by Entergy to its common shareholders of all of the shares of the common stock of Enexus. The information statement will describe the distribution in detail and will contain information about Enexus, its business, financial condition and operations.

Appendix B provides details of first quarter 2008 vs. 2007 earnings variance analysis for "Utility, Parent & Other," "Competitive Businesses," and "Consolidated."

Appendix B: As-Reported Earnings Per Share Variance Analysis

First Quarter 2008 vs. 2007

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

column, most to least favorable)

Utility,

Competitive

Parent & Other

Businesses

Consolidated

2007 earnings

0.44

0.59

1.03

Net revenue

0.08

(g)

0.60

(h)

0.68

Income taxes - other

-

0.04

0.04

Share repurchase effect

0.02

0.04

0.06

Taxes other than income taxes

0.06

(i)

(0.02)

0.04

Preferred dividend requirements

0.01

-

0.01

Interest and dividend income

(0.01)

-

(0.01)

Interest expense and other charges

(0.03)

0.01

(0.02)

Nuclear refueling outage expense

-

(0.02)

(0.02)

Decommissioning expense

-

(0.02)

(0.02)

Depreciation/amortization expense

-

(0.04)

(0.04)

Other income (deductions)

(0.04)

(0.01)

(0.05)

Other operation & maintenance expense

(0.05)

(j)

(0.09)

(k)

(0.14)

2008 earnings

0.48

1.08

1.56

Utility Net Revenue Variance Analysis 2008 vs. 2007
($ EPS)

First Quarter

Sales growth/pricing

0.02

Weather

(0.01)

Other

0.07

Total

0.08

  1. The increase in the quarter is due primarily to sales growth and regulatory actions.
  2. The increase in the quarter is due primarily to higher revenues at Entergy Nuclear from higher pricing, production from Palisades acquired in April 2007 and fewer refueling outage days.
  3. The decrease in the quarter is due primarily to the favorable resolution of a tax audit issue.
  4. The increase is due primarily to higher fossil outage expense due to timing and storm damage expensed at Entergy Arkansas, Inc.
  5. The increase is due primarily to adding Palisades to the portfolio in April 2007.

    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

    9.9%

    Recent activity: Briefing process in the appeal of the rate case order is complete. In its briefs, EAI sought to reverse the APSC's decision on a number of issues, following the APSC's earlier denial of EAI's request for rehearing on its rate case.
    Background: EAI's base rates and Rider ECR have been in effect since 1998.  On August 25, 2006, EAI filed a rate case requesting a $150 million increase based on a June 30, 2006 test year using an 11.25% ROE. The rate increase was revised to $106.5 million on rebuttal primarily to remove a plant acquisition included in the initial filing. The APSC order called for a $5.1 million rate reduction, 9.9% ROE and a hypothetical common equity level lower than EAI's actual capital structure. The base rate change was implemented August 29, 2007. Among other actions, the APSC approved retention through December 31, 2008 of the ECR rider for fuel and purchased power recovery and a PCA or production cost allocation rider to recover System Agreement rough production cost equalization payment for calendar year 2006 production costs. 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 has been required to make payments to other operating companies to achieve rough production cost equalization. Further, following testimony and hearings, the APSC issued a consolidated order on December 21, 2007 addressing issues pending in several dockets. As a result of lack of consensus, the Annual Earnings Review process was not approved. EAI may petition for extraordinary storm damage financial relief, and the automatic sunset provision for the ECR and PCA riders was replaced with an 18 month advance notice provision for any potential future termination, following APSC notice and hearing. AEEC and the Attorney General filed an appeal of the consolidated order, following the APSC's denial of its request for rehearing.
    Ouachita acquisition: In its December 21, 2007 consolidated order, the APSC also approved EAI's proposed recovery mechanism for the Interim Tolling Agreement capacity payments through a separate rider. Energy costs will be recovered through the ECR. A hearing for the asset acquisition approval was conducted April 8, 2008.
    Background: In July 2007, EAI concluded negotiations with Cogentrix to acquire the Ouachita Power Facility, a 798MW load-following CCGT at a purchase price of $210 million assuming a December 31, 2008 close, or $325/kW including planned fossil upgrades, contingencies and transaction cost estimated at $46 million, but excluding potential transmission upgrades. EAI has requested approval to sell one-third of the plant output to EGSL on a long-term basis under a separate agreement.

         

    Entergy Texas

    10.95%

    Recent activity: Intervener and PUCT Staff testimony was filed in the rate case generally calling for an outcome substantially lower than that requested by ETI. A hearing is scheduled to begin May 13, 2008.
    Background: On September 26, 2007, ETI filed a rate case consisting of three major requests for relief: a $64.3 million base rate increase, a $43.2 million request for various riders, and a fuel reconciliation for the period January 2006 through March 2007 in the amount of $858 million. The rate case is based on a March 31, 2007 test year using an 11% ROE. ETI has operated under a base rate freeze since 1999. Legislation subsequently enacted in June 2005 extended the base rate freeze to mid 2008 but also allowed ETI to file for rate relief through riders for incremental capacity costs (IPCR) and transition costs. In December 2005, the PUCT approved the recovery of $18 million annual capacity costs, subject to reconciliation from September 2005. On January 23, 2008, an agreement was filed with the PUCT to increase the IPCR to $21 million and to add a surcharge for $10.3 million of unrecovered costs. In June 2006, the PUCT approved a settlement in the Transition to Competition Cost recovery case, allowing ETI to recover $14.5 million per year in TTC costs over a 15-year period.
    Qualified Power Region: In January 2008, ETI and SPP met to begin the study directed by the PUCT. Four teams were created to work on the key elements. The study is expected to be submitted in the October 2008 timeframe, along with updated SERC and ERCOT studies. Potential resolution is not likely until late 2008 or early 2009.
    Background: In December 2006, ETI filed a Transition to Competition plan with the PUCT, proposing ETI join ERCOT as it represents the most viable path to full customer choice. In October and November, 2007 the PUCT issued orders in ETI's Transition to Competition case approving Southwest Power Pool's plan to develop information similar to that prepared by ERCOT and requesting an updated analysis of the benefits of remaining in the Southeastern Reliability Council (SERC), to support a PUCT decision on the appropriate qualified power region.

    Entergy Gulf States Louisiana

    9.90% - 11.40%

    Recent activity: On March 19, 2008, the LPSC approved an uncontested stipulated settlement agreement reached between EGSL and the LPSC for the 2006 test year formula rate plan (FRP) filing calling for no further change in rates. EGSL and the LPSC also agreed to extend the FRP one additional year.
    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. The 2006 test year filing is the third of three approved filings by the LPSC. The FRP may be extended by mutual agreement of EGSL and the LPSC.
    Storm Cost Recovery: On August 1, 2007, the LPSC approved $187 million as the balance of storm restoration costs for recovery and established $87 million as a reserve for future storms, both to be securitized in the same amounts. 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 2006, interim recovery shifted to the FRP at the rate of $0.85 million per month. Interim recovery and carrying charges will continue until the securitization process is complete. EGSL is awaiting State Bond Commission approval for Act 55 alternate securitization which has been approved by the LPSC and is expected to produce additional customer benefits relative to Act 64 traditional securitization. In the event, State Bond Commission approval is not obtained in the near future, EGSL will proceed with Act 64 securitization which requires no further approvals.
    Ouachita acquisition: On January 16, 2008, the LPSC exercised its original jurisdiction and granted approval to recover costs associated with the Ouachita Interim Tolling Agreement. A hearing to approve entering into the long-term agreement for the purchase of one-third of the output is scheduled to begin June 23, 2008.
    Background: In July 2007, EAI concluded negotiations with Cogentrix to acquire the Ouachita Power Facility. EGSL expects to purchase one-third of the plant output from EAI on a long-term basis under a separate agreement.

    Appendix C: Regulatory Summary Table (continued)

    Company/ Proceeding

    Authorized ROE

    Pending Cases/Events

    Retail Regulation

    Entergy Louisiana

    9.45% - 11.05%

    Recent activity: On March 19, 2008, the LPSC approved an uncontested stipulated settlement agreement reached between ELL and the LPSC for the 2005 test year FRP. ELL agreed to credit customers $7.2 million, plus $0.7 million of interest, for ratepayer contribution to the Central States Compact in Nebraska that never came to fruition and to a one-time, fixed amount deduction from the deferred capacity cost balance in the amount of $2.6 million. ELL continues to seek resolution of its 2006 test year FRP filing. A hearing for the 2006 filing is scheduled to begin August 12, 2008.
    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. The 2006 test year filing is the second of three approved filings by the LPSC. The FRP may be extended by the mutual agreement of ELL and the LPSC. ELL's 2006 test year filing made in May 2007 indicated a 7.6% ROE. On September 27, 2007, ELL implemented an $18.4 million increase, subject to refund, $23.8 million representing a 60% adjustment to reach the bottom of the FRP band, net of $5.4 million for reduced capacity costs. The LPSC will allow ELL to defer the difference between the $39.8 million requested for unrecovered fixed costs for extraordinary customer losses associated with Hurricane Katrina and the $23.8 million 60% adjustment as a regulatory asset, pending ultimate LPSC resolution of the 2006 FRP filing. On October 29, 2007, ELL implemented a $7.1 million FRP decrease which is primarily due to the reclassification of certain franchise fees from base rates to collection via a line item on customer's bills pursuant to an LPSC General Order.
    Storm Cost Recovery: On August 1, 2007, the LPSC approved $545 million as the balance of storm restoration costs for recovery and established $152 million as a reserve for future storms, both to be securitized in the same amounts. 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 2006, interim recovery shifted to the FRP at the rate of $2 million per month. Interim recovery and carrying charges will continue until the securitization process is complete. ELL is awaiting State Bond Commission approval for Act 55 alternate securitization which has been approved by the LPSC and is expected to produce additional customer benefits relative to Act 64 traditional securitization. In the event, State Bond Commission is not obtained in the near future, ELL will proceed with Act 64 securitization which requires no further approvals.
    Little Gypsy Repowering: On April 22, 2008, ELL announced that a federal court decision in February unrelated to the project may require ELL to submit another layer of environmental analysis for approval before starting physical construction. The additional analysis could cause a temporary delay in the onset of construction for several months, previously scheduled to begin in July. ELL is in discussions with state and federal environmental agencies to establish the additional analysis and information that needs to be submitted, and will submit a new timetable for construction once it is determined.
    Background: Little Gypsy is a 538MW resource that will be repowered to utilize CFB technology relying on a dual-fuel approach (petroleum coke and IL basin coal), a much needed solid-fuel baseload resource that can reduce Louisiana customers' dependence on natural gas. The projected cost estimate is $1.55 billion with an early 2012 projected in-service date. On November 8, 2007, the LPSC voted unanimously to approve ELL's request to repower Little Gypsy, subject to a number of conditions, including the development and approval of a construction monitoring plan. This approval cleared the way for ELL to order vital equipment, such as boiler and piping components, so that components can be manufactured to keep the project on schedule. As a result, in January 2008, ELL finalized the terms of a target cost EPC contract with the Shaw Group. On December 21, 2007, ELL filed testimony in the Phase II proceeding seeking cash earnings on CWIP and proposing a procedure for synchronizing future base rate recovery via an FRP or base rate filing.

    Entergy Mississippi

    9.46% - 12.24%

    Recent activity: On March 14, 2008, EMI made its 2007 test year FRP filing indicating an earned ROE of 9.42% compared to a 12.34% mid-point ROE, including 92 basis points for performance incentives. The filing calls for an annual revenue increase of $10.1 million. The filing is currently being reviewed by the Mississippi Public Utilities Staff.
    Background: EMI has been operating under a FRP 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. In December 2005, the MPSC approved the purchase of the Attala facility and ordered interim recovery. In October 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.

    Entergy New Orleans

    10.75%

    Recent activity: None
    Background:  Prior to Hurricane Katrina, ENOI operated under a 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. In October 2006, the City Council of New Orleans (CCNO) unanimously approved a settlement agreement with ENOI that called for a phased-in rate increase to ensure the company's ability to focus on restoration of the gas and electric systems, and created a $75 million storm reserve via a storm reserve rider beginning in March 2007 that positions ENOI to pay for future hurricane damage. 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. The order allows ENOI to seek reinstatement of an appropriate FRP following the resetting of rates in 2009. With New Orleans' recovery also taking place faster than expected, in December 2007, ENOI announced a voluntary plan to return an estimated $10.6 million to customers through a 6.15% base rate credit on electric bills.
    Storm Cost Recovery: The October 2006 agreement established storm reserve riders for electric and gas and a process for storm cost recovery. The $200 million CDBG funding allocated by the Louisiana Recovery Authority in October 2006 is to be applied to storm costs; any storm costs left unreimbursed by CDBG funds or insurance receipts will be addressed in ENOI's July 2008 rate filing. The storm reserve rider builds a $75 million reserve for future storm costs over a 10 year period. To date, ENOI has received $180.8 million of CDBG funding for ratepayer mitigation of storm costs and has submitted an additional $10.6 million for funding approval. ENOI will continue to submit storm restoration costs until the $200 million total CDBG funding allocation is reached.

    Appendix C: Regulatory Summary Table (continued)

    Company/ Proceeding

    Authorized ROE


    Pending Cases/Events

    Wholesale Regulation (FERC)

    System Energy Resources, Inc.

    10.94%

    Recent activity: On March 31, 2008, the LPSC filed a complaint requesting that FERC modify the depreciation and decommissioning rates under the Unit Power Sales Agreement to assume a 20 year extension in the operating license of Grand Gulf and reduce the ROE from 10.94% to no greater than 9.75%. On April 22, 2008, the Utility operating companies filed an Answer to the complaint urging FERC to dismiss the complaint in its entirety, or in the alternative, to deny the complaint without a hearing, because (1) the LPSC's claims with respect to depreciation and decommissioning are unsupported and contrary to FERC precedent and (2) the LPSC has failed to meet its statutory burden to show the currently-effective ROE is unjust and unreasonable. The matter is pending before the FERC.
    Background: ROE approved by July 2001 FERC order.

         

    System Agreement

     

    NA

    Recent activity: The Utility operating subsidiaries filed the rough production cost equalization payments required under the FERC Order in June 2007. Payments/receipts based on calendar year 2007 production costs are estimated below. On April 15, 2008, the federal appeals court for the D.C. circuit affirmed the FERC decision with respect to FERC's jurisdiction to order the remedy, establish the bandwidth, and exclude above market costs of the Vidalia plant. The court remanded for further proceedings and consideration, FERC's decision to deny retroactive refunds and to delay implementation of the bandwidth remedy.
    Background: The System Agreement case addresses reallocation of production costs among the utility operating subsidiaries. In June 2005, the FERC issued its decision and established a bandwidth of +/- 11 % to reallocate production costs and ordered that this approach be applied prospectively. In December 2005, FERC 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. Based on calendar year 2007 production costs, it is estimated EAI will pay $268 million to EGSL ($147 million), ELL ($46 million), ENOI ($5 million) and ETI ($70 million). However, the actual bandwidth payments based on 2007 production costs and the FERC Form 1 data will be filed with the FERC in May 2008. EAI will recover the retail portion through the production cost allocation rider approved by the APSC, with rates becoming effective for July billing. Receipts for the other utility companies are being reflected predominantly as reductions in fuel expense. Appeals of the FERC decision were filed by the APSC, LPSC, MPSC and AEEC in the federal appeals court for the D.C. circuit, with the appeals 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 filed by Entergy at FERC on April 10, 2006 which proposed that all payments required by the June 2005 FERC decision be properly reflected as fuel costs. Various comments or protests to the Compliance filing were filed by various parties including a request for summary judgment by the LPSC. In July 2007, the FERC accepted the proposed rates for filing, allowed them to go into effect June 1, 2006 subject to refund, and set them for hearing and settlement procedures. Settlement discussions were not successful and a procedural schedule has been established with the hearing in this matter (referred to as the bandwidth proceeding) currently scheduled to commence in late May 2008. In September 2007, FERC issued an Order on Remand in a proceeding referred to as the Interruptible/Curtailable proceeding. This proceeding considered how interruptible load, joint account purchases and the allocation of net margin for off-system sales would be considered in calculating the load responsibility for Entergy operating companies and the resulting effect on system production costs. FERC ordered that interruptible load be eliminated from calculations effective April 1, 2004 and ordered refunds for a 15 month period beginning May 1995. Entergy's operating companies filed a request for rehearing of the FERC decision and were granted a request to extend the deadline for any refunds until 30 days after the FERC issues an order on rehearing. The Entergy operating companies believe that any refund amounts would be recoverable in future rates. In November 2007, EMI provided notice of its intent to terminate participation in the Entergy System Agreement, and in January 2008, the LPSC unanimously voted to direct its Staff to begin evaluating the potential for a new agreement, given EAI and EMI notices of withdrawal. The CCNO also opened a docket to gather information on progress towards a successor agreement.

    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 G-1.

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

    First Quarter 2008 vs. 2007
    (see appendix F for definitions of certain measures)

    For 12 months ending March 31

    2008

    2007

    Change

    GAAP Measures

    Return on average invested capital - as-reported

    8.8%

    8.4%

    0.4%

    Return on average common equity - as-reported

    15.9%

    14.5%

    1.4%

    Net margin - as-reported

    10.6%

    10.2%

    0.4%

    Cash flow interest coverage

    4.9

    6.1

    (1.2)

    Book value per share

    $39.99

    $39.63

    $0.36

    End of period shares outstanding (millions)

    191.9

    197.8

    (5.9)

    Non-GAAP Measures

    Return on average invested capital - operational

    9.0%

    7.7%

    1.3%

    Return on average common equity - operational

    16.3%

    12.8%

    3.5%

    Net margin - operational

    10.8%

    9.0%

    1.8%

    As of March 31 ($ in millions)

    2008

    2007

    Change

    GAAP Measures

    Cash and cash equivalents

    916

    1,100

    (184)

    Revolver capacity

    1,503

    2,170

    (667)

    Total debt

    11,292

    10,100

    1,192

    Debt to capital ratio

    58.6%

    55.2%

    3.4%

    Off-balance sheet liabilities:

    Debt of joint ventures - Entergy's share

    134

    145

    (11)

    Leases - Entergy's share

    508

    523

    (15)

    Total off-balance sheet liabilities

    642

    668

    (26)

    Non-GAAP Measures

    Total gross liquidity

    2,419

    3,270

    (851)

    Net debt to net capital ratio

    56.5%

    52.3%

    4.2%

    Net debt ratio including off-balance sheet liabilities

    58.0%

    54.1%

    3.9%

     

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

    2Q06

    3Q06

    4Q06

    1Q07

    2Q07

    3Q07

    4Q07

    1Q08

    07YTD

    08YTD

    Financial (l)

    EPS - as-reported ($)

    1.33

    1.83

    1.27

    1.03

    1.32

    2.30

    0.96

    1.56

    1.03

    1.56

    Less - special items ($)

    0.11

    0.03

    0.48

    0.00

    0.00

    0.00

    (0.16)

    0.00

    0.00

    0.00

    EPS - operational ($)

    1.22

    1.80

    0.79

    1.03

    1.32

    2.30

    1.12

    1.56

    1.03

    1.56

    Trailing Twelve Months

    ROIC - as-reported (%)

    7.3

    7.5

    8.5

    8.4

    8.2

    8.6

    8.3

    8.8

    8.4

    8.8

    ROIC - operational (%)

    7.4

    7.5

    7.7

    7.7

    7.6

    8.1

    8.5

    9.0

    7.7

    9.0

    ROE - as-reported (%)

    11.3

    11.6

    14.2

    14.5

    14.2

    14.6

    14.1

    15.9

    14.5

    15.9

    ROE - operational (%)

    11.5

    11.6

    12.5

    12.8

    12.9

    13.4

    14.5

    16.3

    12.8

    16.3

    Cash Flow Interest Coverage

    5.2

    6.0

    7.2

    6.1

    5.8

    5.3

    5.0

    4.9

    6.1

    4.9

    Debt to capital ratio (%)

    52.4

    50.4

    52.3

    55.2

    57.3

    57.3

    57.6

    58.6

    55.2

    58.6

    Net debt/net capital ratio (%)

    50.4

    48.3

    49.4

    52.3

    54.1

    53.9

    54.7

    56.5

    52.3

    56.5

    Utility

    GWh billed

    Residential (m)

    7,240

    11,120

    7,163

    7,792

    6,986

    11,128

    7,376

    8,011

    7,792

    8,011

    Commercial & Gov't (m)

    7,001

    8,587

    7,027

    6,665

    7,043

    8,748

    7,290

    6,807

    6,665

    6,807

    Industrial (m)

    9,702

    10,316

    9,724

    9,323

    9,813

    10,120

    9,729

    9,377

    9,323

    9,377

    Wholesale (m)

    1,861

    1,844

    1,470

    1,638

    1,428

    1,413

    1,666

    1,290

    1,638

    1,290

    O&M expense/MWh (m)

    $17.03

    $14.59

    $20.85

    $16.83

    $19.01

    $15.16

    $20.23

    $17.26

    $16.83

    $17.26

    Reliability

    SAIFI (n)

    1.7

    1.8

    1.8

    1.8

    1.9

    1.8

    1.8

    1.9

    1.8

    1.9

    SAIDI (n)

    178

    182

    189

    193

    198

    188

    184

    191

    193

    191

    Nuclear

    Net MW in operation

    4,200

    4,200

    4,200

    4,200

    4,998

    4,998

    4,998

    4,998

    4,200

    4,998

    Avg. realized price per MWh (o)

    $43.76

    $44.90

    $44.34

    $55.11

    $51.28

    $53.11

    $51.52

    $61.47

    $55.11

    $61.47

    Production cost/MWh (p)

    $19.61

    $18.75

    $21.00

    $19.66

    $21.27

    $20.90

    $22.64

    $19.98

    $19.66

    $19.98

    Non-fuel O&M expense/ purchased power per MWh (p)

    $21.65

    $21.29

    $22.48

    $20.76

    $24.09

    $22.40

    $23.94

    $20.20

    $20.76

    $20.20

    GWh billed

    8,281

    9,119

    8,684

    8,315

    8,896

    10,105

    10,254

    10,760

    8,315

    10,760

    Capacity factor

    90%

    99%

    93%

    91%

    82%

    93%

    92%

    97%

    91%

    97%

  6. Data for periods beginning 1Q07 reflect the re-consolidation of ENOI. Prior periods are not restated for this effect.
  7. Data has been restated for the re-consolidation of ENOI which was the accounting adopted by Entergy in second quarter 2007. 4Q07 excludes the effect of the nuclear alignment special.
  8. Excludes impact of major storm activity.
  9. Restated to reflect MWh billed as the denominator in the calculation.
  10. Restated data to reflect moving purchased power from production costs to non-fuel O&M. 4Q07 excludes the effect of the nuclear alignment special.

     

    Appendix E: Planned Capital Expenditures

    Entergy's capital plan from 2008 through 2010 anticipates $5.9 billion for investment, including $2.7 billion of maintenance capital. The remaining $3.2 billion is for specific investments such as the Utility's portfolio transformation strategy (i.e., Calcasieu and Ouachita acquisitions and Little Gypsy repowering), the steam generator replacement at Entergy's Waterford 3 nuclear unit, environmental compliance spending, transmission upgrades, business function relocation, dry cask storage and nuclear license renewal projects, NYPA value sharing and other initiatives. A potentially significant item not included in these estimates is the cost associated with the proposed inter-connection between Entergy Texas and ERCOT (up to approximately $1 billion). In addition, only minimal amounts for potential new nuclear development at the Grand Gulf and River Bend sites at the Utility are included.

    Appendix E: 2008-2010 Planned Capital Expenditures including Entergy New Orleans

    ($ in millions)

    2008

    2009

    2010

    Total

    Maintenance capital

           

      Utility, Parent & Other

    864

    807

    811

    2,482

      Entergy Nuclear

    78

    78

    78

    234

      Non-Nuclear Wholesale Assets

    2

    -

    -

    2

         Subtotal

    944

    885

    889

    2,718

    Other capital commitments

           

      Utility, Parent & Other

    1,033

    846

    675

    2,554

      Entergy Nuclear

    207

    189

    248

    644

      Non-Nuclear Wholesale Assets

    -

    -

    -

    -

         Subtotal

    1,240

    1,035

    923

    3,198

    Total Planned Capital Expenditures

    2,184

    1,920

    1,812

    5,916

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

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

    Utility

    GWh billed

    Total number of GWh billed to all retail and wholesale customers

    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 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

    A contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator

    Average 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, excluding the revenue associated with the amortization of the below-market PPA for Palisades

    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 and operated by Entergy Nuclear

    Average realized price per MWh

    As-reported revenue per MWh billed 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/purchased
    power per MWh

    Operation, maintenance and refueling expenses and purchased power per MWh billed, excluding fuel

    GWh billed

    Total number of GWh billed to all customers

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

    Financial Measures - GAAP

    Return on average invested capital - as-reported

    12-months rolling 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 Non-Nuclear Wholesale Assets business joint ventures

    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

    Earnings before interest, income taxes, depreciation and amortization (EBITDA)

    Operating income plus depreciation and amortization, plus other regulatory charges (credits) - net

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

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

    ($ in millions)

    2Q06

    3Q06

    4Q06

    1Q07

    2Q07

    3Q07

    4Q07

    1Q08

    As-reported earnings-rolling 12 months (A)

    916

    955

    1,133

    1,151

    1,137

    1,209

    1,135

    1,231

    Preferred dividends

    28

    29

    28

    28

    26

    25

    25

    24

    Tax effected interest expense

    316

    324

    339

    352

    365

    392

    392

    396

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

    1,260

    1,308

    1,499

    1,531

    1,528

    1,626

    1,552

    1,651

    Special items in prior quarters

    (37)

    (6)

    33

    132

    108

    101

    0

    (32)

    Special items 2Q06 thru 1Q08

    Utility, Parent & Other
    ENOI results

    11

    7

    (20)

    Entergy-Koch, LP gain

    55

    Retail Business impairment reserve

    Retail Business discontinued operations

    13

    (1)

    (10)

    Restructuring - Entergy-Koch, LP
    distribution

    104

    Non-Nuclear Wholesale Assets
    Write-off of tax capital losses

    (28)

    Nuclear Fleet Alignment

    (32)

    Total special items (C)

    (13)

    0

    135

    132

    108

    101

    (32)

    (32)

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

    1,273

    1,308

    1,364

    1,399

    1,420

    1,525

    1,584

    1,683

    Operational earnings, rolling 12 months (A-C)

    929

    955

    998

    1,020

    1,029

    1,108

    1,167

    1,263

    Average invested capital (D)

    17,283

    17,514

    17,688

    18,227

    18,652

    18,866

    18,721

    18,790

    Average common equity (E)

    8,080

    8,208

    7,970

    7,939

    7,998

    8,264

    8,030

    7,756

    Operating revenues (F)

    10,747

    11,104

    10,932

    11,295

    11,371

    11,311

    11,484

    11,655

    ROIC - as-reported (B/D)

    7.3

    7.5

    8.5

    8.4

    8.2

    8.6

    8.3

    8.8

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

    7.4

    7.5

    7.7

    7.7

    7.6

    8.1

    8.5

    9.0

    ROE - as-reported (A/E)

    11.3

    11.6

    14.2

    14.5

    14.2

    14.6

    14.1

    15.9

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

    11.5

    11.6

    12.5

    12.8

    12.9

    13.4

    14.5

    16.3

    Net margin - as-reported (A/F)

    8.5

    8.6

    10.4

    10.2

    10.0

    10.7

    9.9

    10.6

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

    8.6

    8.6

    9.1

    9.0

    9.1

    9.8

    10.2

    10.8

  11. Data for periods beginning 1Q07 reflect the re-consolidation of ENOI. Prior periods are not restated for this effect.
  12.  

    Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - Credit and Liquidity Metrics (r)

    ($ in millions)

    2Q06

    3Q06

    4Q06

    1Q07

    2Q07

    3Q07

    4Q07

    1Q08

    Gross debt (A)

    9,402

    9,054

    9,356

    10,100

    10,936

    11,194

    11,123

    11,292

    Less cash and cash equivalents (B)

    729

    745

    1,016

    1,100

    1,320

    1,467

    1,254

    916

    Net debt (C)

    8,673

    8,309

    8,340

    9,000

    9,616

    9,728

    9,869

    10,376

    Total capitalization (D)

    17,956

    17,957

    17,899

    18,304

    19,088

    19,529

    19,297

    19,276

    Less cash and cash equivalents (B)

    729

    745

    1,016

    1,100

    1,320

    1,467

    1,254

    916

    Net capital (E)

    17,227

    17,212

    16,883

    17,204

    17,767

    18,062

    18,043

    18,360

    Debt to capital ratio % (A/D)

    52.4

    50.4

    52.3

    55.2

    57.3

    57.3

    57.6

    58.6

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

    50.4

    48.3

    49.4

    52.3

    54.1

    53.9

    54.7

    56.5

    Off-balance sheet liabilities (F)

    671

    668

    665

    668

    664

    662

    658

    642

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

    52.2

    50.2

    51.3

    54.1

    55.8

    55.5

    56.3

    58.0

    Revolver capacity (G)

    2,710

    3,095

    2,770

    2,170

    1,650

    1,804

    1,730

    1,503

    Gross liquidity (B+G)

    3,439

    3,840

    3,786

    3,270

    2,970

    3,271

    2,984

    2,419

  13. Data for periods beginning 1Q07 reflect the re-consolidation of ENOI. Prior periods are not restated for this effect.

 

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

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

 

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

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

Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in Entergy's 2007 Annual Report on Form 10-K under (i) Forward-Looking Information, (ii) Item 1A. Risk Factors, (iii) and Item 7. Management's Financial Discussion and Analysis, and (b) the following transactional factors (in addition to others described elsewhere in this release and in subsequent securities filings): (i) risks inherent in the contemplated spin-off, joint venture and related transactions (including the level of debt incurred by the spun off company and the terms and costs related thereto), (ii) legislative and regulatory actions, and (iii) conditions of the capital markets during the periods covered by the forward-looking statements.  Entergy cannot provide any assurances that the spin-off or any of the proposed transactions related thereto will be completed, nor can it give assurances as to the terms on which such transactions will be consummated. The transaction is subject to certain conditions precedent, including regulatory approvals and the final approval by the Board of Directors of Entergy.

Entergy Corporation 
 
Consolidating Balance Sheet 
March 31, 2008 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 162,821    $ 7,890    $ -    $ 170,711 
  Temporary cash investments - at cost,              
   which approximates market 132,949    612,046      744,995 
     Total cash and cash equivalents 295,770    619,936      915,706 
Securitization recovery trust account 27,625        27,625 
Notes receivable 281,747    420,910    (702,657)   - 
Accounts receivable:              
  Customer 447,196    207,859      655,055 
  Allowance for doubtful accounts (21,329)       (21,329)
  Associated companies 58,064    93,283    (151,347)   - 
  Other 257,662    45,154      302,816 
  Accrued unbilled revenues 248,898        248,898 
     Total accounts receivable 990,491    346,296    (151,347)   1,185,440 
Deferred fuel costs 140,702        140,702 
Accumulated deferred income taxes 12,976        12,976 
Fuel inventory - at average cost 227,760    3,489      231,249 
Materials and supplies - at average cost 462,078    242,328      704,406 
Deferred nuclear refueling outage costs 75,738    112,543      188,281 
System agreement cost equalization 268,000        268,000 
Prepayments and other 232,137    39,724      271,861 
TOTAL 3,015,024    1,785,226    (854,004)   3,946,246 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 7,776,216    40,396    (7,740,365)   76,247 
Decommissioning trust funds 1,322,559    1,896,679      3,219,238 
Non-utility property - at cost (less accumulated depreciation) 221,069    3,952      225,021 
Other 71,123    8,752    (5,388)   74,487 
TOTAL 9,390,967    1,949,779    (7,745,753)   3,594,993 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 30,000,285    3,415,833      33,416,118 
Property under capital lease 739,073        739,073 
Natural gas 305,002        305,002 
Construction work in progress 794,842    187,157      981,999 
Nuclear fuel under capital lease 417,178        417,178 
Nuclear fuel 151,380    490,126      641,506 
TOTAL PROPERTY, PLANT AND EQUIPMENT 32,407,760    4,093,116      36,500,876 
Less - accumulated depreciation and amortization 14,830,965    478,419      15,309,384 
PROPERTY, PLANT AND EQUIPMENT - NET 17,576,795    3,614,697      21,191,492 
                
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
   SFAS 109 regulatory asset - net 706,807        706,807 
  Other regulatory assets 2,923,053        2,923,053 
  Deferred fuel costs 168,122        168,122 
Long-term receivables 7,720        7,720 
Goodwill 374,099    3,073      377,172 
Other 750,068    768,779    (569,619)   949,228 
TOTAL 4,929,869    771,852    (569,619)   5,132,102 
               
TOTAL ASSETS $ 34,912,655    $ 8,121,554    $ (9,169,376)   $ 33,864,833 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
March 31, 2008 
(Dollars in thousands) 
(Unaudited) 
               
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 883,440    $ 28,056    $ -    $ 911,496 
Notes payable:              
  Associated companies 392,628    310,029    (702,657)   - 
  Other 25,037        25,037 
Account payable:              
  Associated companies 108,486    41,124    (149,610)   - 
  Other 860,250    180,573      1,040,823 
Customer deposits 294,767        294,767 
Taxes accrued (14,790)   14,790      - 
Accumulated deferred income taxes       - 
Interest accrued 150,966    2,758      153,724 
Deferred fuel costs       - 
Obligations under capital leases 151,945        151,945 
Pension and other postretirement liabilities 31,770    3,606      35,376 
System agreement cost equalization 268,000        268,000 
Other 53,399    271,676      325,075 
TOTAL 3,205,898    852,612    (852,267)   3,206,243 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,979,525    523,361      6,502,886 
Accumulated deferred investment tax credits 339,045        339,045 
Obligations under capital leases 275,808        275,808 
Other regulatory liabilities 550,734        550,734 
Decommissioning and retirement cost liabilities 1,371,094    1,162,330      2,533,424 
Accumulated provisions 126,890    10,908      137,798 
Pension and other postretirement liabilities 1,021,867    321,167      1,343,034 
Long-term debt 9,720,383    212,560    (5,388)   9,927,555 
Other 1,160,721    475,496    (572,127)   1,064,090 
TOTAL 20,546,067    2,705,822    (577,515)   22,674,374 
               
Preferred stock without sinking fund 280,510    422,488    (391,932)   311,066 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
  issued 248,174,087 shares in 2008 2,163,749    1,071,639    (3,232,906)   2,482 
Paid-in capital 7,036,838    2,155,853    (4,338,854)   4,853,837 
Retained earnings 5,758,904    1,081,285    60,156    6,900,345 
Accumulated other comprehensive income (loss) (82,946)   (124,829)   626    (207,149)
Less - treasury stock, at cost (56,276,698 shares in 2008) 3,996,365    43,316    (163,316)   3,876,365 
TOTAL 10,880,180    4,140,632    (7,347,662)   7,673,150 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 34,912,655    $ 8,121,554    $ (9,169,376)   $ 33,864,833 
               
*Totals may not foot due to rounding.              

 

Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2007 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 120,583    $ 6,069    $ -    $ 126,652 
  Temporary cash investments - at cost,              
   which approximates market 679,590    447,486      1,127,076 
     Total cash and cash equivalents 800,173    453,555      1,253,728 
Securitization recovery trust account 19,273        19,273 
Notes receivable 291,101    419,993    (710,933)   161 
Accounts receivable:              
  Customer 413,284    197,440      610,724 
  Allowance for doubtful accounts (25,789)       (25,789)
  Associated companies 53,543    84,473    (138,016)   - 
  Other 267,732    35,328      303,060 
  Accrued unbilled revenues. 288,076        288,076 
     Total accounts receivable 996,846    317,241    (138,016)   1,176,071 
Deferred fuel costs       - 
Accumulated deferred income taxes 38,117        38,117 
Fuel inventory - at average cost 205,146    3,438      208,584 
Materials and supplies - at average cost 454,517    237,859      692,376 
Deferred nuclear refueling outage costs 43,498    129,438      172,936 
System agreement cost equalization 268,000        268,000 
Prepayments and other 100,458    28,543      129,001 
TOTAL 3,217,129    1,590,067    (848,949)   3,958,247 
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 7,521,097    94,103    (7,536,208)   78,992 
Decommissioning trust funds 1,370,035    1,937,601      3,307,636 
Non-utility property - at cost (less accumulated depreciation) 216,640    3,564      220,204 
Other 80,700    7,251    (5,388)   82,563 
TOTAL 9,188,472    2,042,519    (7,541,596)   3,689,395 
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 29,613,366    3,346,428    (772)   32,959,022 
Property under capital lease 740,095        740,095 
Natural gas 300,767        300,767 
Construction work in progress 861,523    193,310      1,054,833 
Nuclear fuel under capital lease 361,502        361,502 
Nuclear fuel 154,713    510,907      665,620 
TOTAL PROPERTY, PLANT AND EQUIPMENT 32,031,966    4,050,645    (772)   36,081,839 
Less - accumulated depreciation and amortization 14,659,224    448,345      15,107,569 
PROPERTY, PLANT AND EQUIPMENT - NET 17,372,742    3,602,300    (772)   20,974,270 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 595,743        595,743 
  Other regulatory assets 2,971,399        2,971,399 
  Deferred fuel costs 168,122        168,122 
Long-term receivables 7,714        7,714 
Goodwill 374,099    3,073      377,172 
Other 794,177    758,729    (651,966)   900,940 
TOTAL 4,911,254    761,802    (651,966)   5,021,090 
               
TOTAL ASSETS $ 34,689,597    $ 7,996,688    $ (9,043,283)   $ 33,643,002 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
December 31, 2007 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ 968,701    $ 28,056    $ -    $ 996,757 
Notes payable:              
  Associated companies 399,978    310,955    (710,933)   - 
  Other 25,037        25,037 
Account payable:               
  Associated companies 95,943    38,762    (134,705)   - 
  Other 802,604    228,696      1,031,300 
Customer deposits 291,171        291,171 
Taxes accrued       - 
Accumulated deferred income taxes       - 
Interest accrued 185,794    2,174      187,968 
Deferred fuel costs 54,947        54,947 
Obligations under capital leases 152,615        152,615 
Pension and other postretirement liabilities 31,182    3,613      34,795 
System agreement cost equalization 268,000        268,000 
Other 68,675    145,489      214,164 
TOTAL 3,344,647    757,745    (845,638)   3,256,754 
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 5,825,015    554,664      6,379,679 
Accumulated deferred investment tax credits 343,539        343,539 
Obligations under capital leases 220,438        220,438 
Other regulatory liabilities 490,323        490,323 
Decommissioning and retirement cost liabilities 1,346,422    1,142,639      2,489,061 
Accumulated provisions 124,483    8,923      133,406 
Pension and other postretirement liabilities 1,047,745    313,581      1,361,326 
Long-term debt 9,522,791    283,172    (77,828)   9,728,135 
Other 1,250,738    400,436    (584,666)   1,066,508 
TOTAL 20,171,494    2,703,415    (662,494)   22,212,415 
                
Preferred stock without sinking fund 280,612    422,482    (391,932)   311,162 
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
 issued 248,174,087 shares in 2007 2,228,351    1,068,639    (3,294,508)   2,482 
Paid-in capital 6,696,890    2,071,257    (3,917,378)   4,850,769 
Retained earnings 5,907,673    923,567    (95,275)   6,735,965 
Accumulated other comprehensive income (loss) (85,205)   92,899    626    8,320 
Less - treasury stock, at cost (55,053,847 shares in 2007) 3,854,865    43,316    (163,316)   3,734,865 
TOTAL 10,892,844    4,113,046    (7,143,219)   7,862,671 
                
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 34,689,597    $ 7,996,688    $ (9,043,283)   $ 33,643,002 
               
*Totals may not foot due to rounding.              

 

Entergy Corporation 
 
Consolidating Balance Sheet 
March 31, 2008 vs December 31, 2007 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
ASSETS              
               
CURRENT ASSETS              
               
Cash and cash equivalents:              
  Cash $ 42,238    $ 1,821    $ -    $ 44,059 
  Temporary cash investments - at cost,              
   which approximates market (546,641)   164,560      (382,081)
     Total cash and cash equivalents (504,403)   166,381      (338,022)
Securitization recovery trust account 8,352        8,352 
Notes receivable (9,354)   917    8,276    (161)
Accounts receivable:              
  Customer 33,912    10,419      44,331 
  Allowance for doubtful accounts 4,460        4,460 
  Associated companies 4,521    8,810    (13,331)   - 
  Other (10,070)   9,826      (244)
  Accrued unbilled revenues (39,178)       (39,178)
     Total accounts receivable (6,355)   29,055    (13,331)   9,369 
Deferred fuel costs 140,702        140,702 
Accumulated deferred income taxes (25,141)       (25,141)
Fuel inventory - at average cost 22,614    51      22,665 
Materials and supplies - at average cost 7,561    4,469      12,030 
Deferred nuclear refueling outage costs 32,240    (16,895)     15,345 
System agreement cost equalization       - 
Prepayments and other 131,679    11,181      142,860 
TOTAL (202,105)   195,159    (5,055)   (12,001)
               
OTHER PROPERTY AND INVESTMENTS              
               
Investment in affiliates - at equity 255,119    (53,707)   (204,157)   (2,745)
Decommissioning trust funds (47,476)   (40,922)     (88,398)
Non-utility property - at cost (less accumulated depreciation) 4,429    388      4,817 
Other (9,577)   1,501      (8,076)
TOTAL 202,495    (92,740)   (204,157)   (94,402)
               
PROPERTY, PLANT, AND EQUIPMENT              
               
Electric 386,919    69,405    772    457,096 
Property under capital lease (1,022)       (1,022)
Natural gas 4,235        4,235 
Construction work in progress (66,681)   (6,153)     (72,834)
Nuclear fuel under capital lease 55,676        55,676 
Nuclear fuel (3,333)   (20,781)     (24,114)
TOTAL PROPERTY, PLANT AND EQUIPMENT 375,794    42,471    772    419,037 
Less - accumulated depreciation and amortization 171,741    30,074      201,815 
PROPERTY, PLANT AND EQUIPMENT - NET 204,053    12,397    772    217,222 
               
DEFERRED DEBITS AND OTHER ASSETS              
               
Regulatory assets:              
  SFAS 109 regulatory asset - net 111,064        111,064 
  Other regulatory assets (48,346)       (48,346)
  Deferred fuel costs       - 
Long-term receivables       6 
Goodwill       - 
Other (44,109)   10,050    82,347    48,288 
TOTAL 18,615    10,050    82,347    111,012 
               
TOTAL ASSETS $ 223,058    $ 124,866    $ (126,093)   $ 221,831 
               
*Totals may not foot due to rounding.              
 
 
 
Entergy Corporation 
 
Consolidating Balance Sheet 
March 31, 2008 vs December 31, 2007 
(Dollars in thousands) 
(Unaudited) 
   
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
CURRENT LIABILITIES              
               
Currently maturing long-term debt $ (85,261)   $ -    $ -    $ (85,261)
Notes payable:              
  Associated companies (7,350)   (926)   8,276    - 
  Other       - 
Account payable:              
  Associated companies 12,543    2,362    (14,905)   - 
  Other 57,646    (48,123)     9,523 
Customer deposits 3,596        3,596 
Taxes accrued (14,790)   14,790      - 
Accumulated deferred income taxes       - 
Interest accrued (34,828)   584      (34,244)
Deferred fuel costs (54,947)       (54,947)
Obligations under capital leases (670)       (670)
Pension and other postretirement liabilities 588    (7)     581 
System agreement cost equalization       - 
Other (15,276)   126,187      110,911 
TOTAL (138,749)   94,867    (6,629)   (50,511)
               
NON-CURRENT LIABILITIES              
               
Accumulated deferred income taxes and taxes accrued 154,510    (31,303)     123,207 
Accumulated deferred investment tax credits (4,494)       (4,494)
Obligations under capital leases 55,370        55,370 
Other regulatory liabilities 60,411        60,411 
Decommissioning and retirement cost liabilities 24,672    19,691      44,363 
Accumulated provisions 2,407    1,985      4,392 
Pension and other postretirement liabilities (25,878)   7,586      (18,292)
Long-term debt 197,592    (70,612)   72,440    199,420 
Other (90,017)   75,060    12,539    (2,418)
TOTAL 374,573    2,407    84,979    461,959 
               
Preferred stock without sinking fund (102)       (96)
               
SHAREHOLDERS' EQUITY              
               
Common stock, $.01 par value, authorized 500,000,000 shares;              
 issued 248,174,087 shares in 2008 and 2007 (64,602)   3,000    61,602    - 
Paid-in capital 339,948    84,596    (421,476)   3,068 
Retained earnings (148,769)   157,718    155,431    164,380 
Accumulated other comprehensive income (loss) 2,259    (217,728)     (215,469)
Less - treasury stock, at cost 141,500        141,500 
TOTAL (12,664)   27,586    (204,443)   (189,521)
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 223,058    $ 124,866    $ (126,093)   $ 221,831 
               
*Totals may not foot due to rounding.              

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended March 31, 2008 
(Dollars in thousands) 
(Unaudited) 
 
    U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Electric   $ 2,046,935    $ -    $ (708)   $ 2,046,227 
Natural gas   89,395        89,395 
Competitive businesses   6,007    729,278    (6,173)   729,112 
     Total   2,142,337    729,278    (6,881)   2,864,734 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   454,583    85,918      540,501 
  Purchased power   611,851    15,412    (6,622)   620,642 
  Nuclear refueling outage expenses   19,337    31,922      51,258 
  Other operation and maintenance   419,934    191,707    (373)   611,268 
Decommissioning   23,325    22,671      45,996 
Taxes other than income taxes   85,786    22,785      108,571 
Depreciation and amortization   212,423    32,562      244,985 
Other regulatory charges (credits) - net   35,280        35,280 
     Total   1,862,519    402,977    (6,995)   2,258,501 
                 
OPERATING INCOME   279,818    326,301    114    606,233 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   9,286        9,286 
Interest and dividend income   43,322    37,495    (26,535)   54,282 
Equity in earnings (loss) of unconsolidated equity affiliates   485    (1,414)     (929)
Miscellaneous - net   (6,047)   (5,395)   (114)   (11,556)
     Total   47,046    30,686    (26,649)   51,083 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   123,071    73      123,144 
Other interest - net   40,754    18,319    (26,535)   32,538 
Allowance for borrowed funds used during construction   (5,116)       (5,116)
Preferred dividend requirements and other   4,332    665      4,998 
     Total   163,041    19,057    (26,535)   155,564 
                 
INCOME BEFORE INCOME TAXES   163,823    337,930      501,752 
                 
Income taxes   68,527    124,476      193,003 
                 
CONSOLIDATED NET INCOME   $ 95,296    $ 213,454    $ -    $ 308,749 
                 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.49    $1.11        $1.60 
  DILUTED   $0.48    $1.08        $1.56 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               192,639,605 
  DILUTED               198,300,041 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation 
 
Consolidating Income Statement 
Three Months Ended March 31, 2007 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Electric   $ 2,112,148    $ -    $ (688)   $ 2,111,460 
Natural gas   84,951        84,951 
Competitive businesses   6,709    496,589    (5,650)   497,649 
     Total   2,203,808    496,589    (6,338)   2,694,060 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   726,929    60,483      787,412 
  Purchased power   439,305    10,942    (6,008)   444,239 
  Nuclear refueling outage expenses   19,402    23,573      42,975 
  Other operation and maintenance   404,187    160,634    (444)   564,377 
Decommissioning   21,712    16,117      37,830 
Taxes other than income taxes   106,124    16,559      122,683 
Depreciation and amortization   213,336    19,074      232,410 
Other regulatory charges (credits) - net   23,540        23,540 
     Total   1,954,535    307,382    (6,452)   2,255,466 
                 
OPERATING INCOME   249,273    189,207    114    438,594 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   17,258        17,258 
Interest and dividend income   44,836    32,204    (19,930)   57,110 
Equity in earnings (loss) of unconsolidated equity affiliates   579    1,045      1,624 
Miscellaneous - net   (1,856)   (3,350)   (114)   (5,320)
     Total   60,817    29,899    (20,044)   70,672 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   122,063    1,036      123,099 
Other interest - net   38,116    14,015    (19,916)   32,215 
Allowance for borrowed funds used during construction   (10,529)       (10,529)
Preferred dividend requirements and other   5,366    869    (14)   6,221 
     Total   155,016    15,920    (19,930)   151,006 
                 
INCOME BEFORE INCOME TAXES   155,074    203,186      358,260 
                 
Income taxes   65,578    80,487      146,065 
                 
CONSOLIDATED NET INCOME   $89,496    $122,699    $-    $212,195 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.45    $0.61        $1.06 
  DILUTED   $0.44    $0.59        $1.03 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               200,549,935 
  DILUTED               206,133,440 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidating Income Statement 
Three Months Ended March 31, 2008 vs. 2007 
(Dollars in thousands) 
(Unaudited) 
 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Electric   $ (65,213)   $ -    $ (20)   $ (65,233)
Natural gas   4,444        4,444 
Competitive businesses   (702)   232,689    (523)   231,463 
     Total   (61,471)   232,689    (543)   170,674 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   (272,346)   25,435      (246,911)
  Purchased power   172,546    4,470    (614)   176,403 
  Nuclear refueling outage expenses   (65)   8,349      8,283 
  Other operation and maintenance   15,747    31,073    71    46,891 
Decommissioning   1,613    6,554      8,166 
Taxes other than income taxes   (20,338)   6,226      (14,112)
Depreciation and amortization   (913)   13,488      12,575 
Other regulatory charges (credits )- net   11,740        11,740 
     Total   (92,016)   95,595    (543)   3,035 
                 
OPERATING INCOME   30,545    137,094      167,639 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   (7,972)       (7,972)
Interest and dividend income   (1,514)   5,291    (6,605)   (2,828)
Equity in earnings (loss) of unconsolidated equity affiliates   (94)   (2,459)     (2,553)
Miscellaneous - net   (4,191)   (2,045)     (6,236)
     Total   (13,771)   787    (6,605)   (19,589)
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   1,008    (963)     45 
Other interest - net   2,638    4,304    (6,619)   323 
Allowance for borrowed funds used during construction   5,413        5,413 
Preferred dividend requirements and other   (1,034)   (204)   14    (1,223)
     Total   8,025    3,137    (6,605)   4,558 
                 
INCOME BEFORE INCOME TAXES   8,749    134,744      143,492 
                   
Income taxes   2,949    43,989      46,938 
                 
CONSOLIDATED NET INCOME   $ 5,800    $ 90,755    $ -    $ 96,554 
                 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $0.04    $0.50        $0.54 
  DILUTED   $0.04    $0.49        $0.53 
                 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
  
Consolidating Income Statement 
Twelve Months Ended March 31, 2008 
(Dollars in thousands) 
(Unaudited) 
 
    U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Electric   $ 8,983,790    $ -    $ (2,721)   $ 8,981,069 
Natural gas   210,516        210,516 
Competitive businesses   28,870    2,457,998    (23,380)   2,463,488 
     Total   9,223,176    2,457,998    (26,101)   11,655,073 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,360,741    327,182      2,687,923 
  Purchased power   2,121,746    66,847    (25,239)   2,163,354 
  Nuclear refueling outage expenses   75,022    114,233      189,255 
  Other operation and maintenance   1,860,522    837,341    (1,318)   2,696,545 
Decommissioning   90,832    85,232      176,064 
Taxes other than income taxes   389,367    85,580      474,947 
Depreciation and amortization   855,664    120,622      976,286 
Other regulatory charges (credits) - net   66,694        66,694 
     Total   7,820,588    1,637,037    (26,557)   9,431,068 
                 
OPERATING INCOME   1,402,588    820,961    456    2,224,005 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   34,770        34,770 
Interest and dividend income   175,114    144,532    (88,477)   231,169 
Equity in earnings (loss) of unconsolidated equity affiliates   1,112    (488)     624 
Miscellaneous - net   (13,213)   (17,428)   (456)   (31,097)
     Total   197,783    126,616    (88,933)   235,466 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   502,281    3,853      506,134 
Other interest - net   186,317    58,491    (88,491)   156,317 
Allowance for borrowed funds used during construction   (19,619)       (19,619)
Preferred dividend requirements and other   20,651    3,217    14    23,882 
     Total   689,630    65,561    (88,477)   666,714 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   910,741    882,016      1,792,757 
                 
Income taxes   364,044    197,310      561,354 
                 
INCOME FROM CONTINUING OPERATIONS   546,697    684,706      1,231,403 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes)         - 
                 
CONSOLIDATED NET INCOME   $ 546,697    $ 684,706      $ 1,231,403 
                 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $2.81    $3.52        $6.33 
  DILUTED   $2.73    $3.41        $6.14 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC          
  DILUTED          
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $2.81    $3.52        $6.33 
  DILUTED   $2.73    $3.41        $6.14 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               194,617,035 
  DILUTED               200,714,460 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidating Income Statement 
Twelve Months Ended March 31, 2007 
(Dollars in thousands) 
(Unaudited) 
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Electric   $ 9,258,274    $ -    $ (3,335)   $ 9,254,939 
Natural gas   194,842        194,842 
Competitive businesses   7,406    1,861,367    (51,483)   1,817,290 
     Total   9,460,522    1,861,367    (54,818)   11,267,071 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   2,948,978    265,202      3,214,180 
  Purchased power   2,027,888    81,697    (52,676)   2,056,909 
  Nuclear refueling outage expenses   77,676    92,872      170,548 
  Other operation and maintenance   1,695,947    761,951    (2,597)   2,455,301 
Decommissioning   84,575    63,671      148,246 
Taxes other than income taxes   409,281    64,978      474,259 
Depreciation and amortization   857,694    81,161      938,855 
Other regulatory charges (credits) - net   (52,005)       (52,005)
     Total   8,050,034    1,411,532    (55,273)   9,406,293 
                 
OPERATING INCOME   1,410,488    449,835    455    1,860,778 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   43,693        43,693 
Interest and dividend income   163,953    127,841    (90,172)   201,622 
Equity in earnings (loss) of unconsolidated equity affiliates   91,164    2,204      93,368 
Miscellaneous - net   (13,487)   30,555    (456)   16,612 
     Total   285,323    160,600    (90,628)   355,295 
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   496,626    8,329      504,955 
Other interest - net   118,462    61,180    (90,118)   89,524 
Allowance for borrowed funds used during construction   (27,029)       (27,029)
Preferred dividend requirements and other   23,832    3,475    (55)   27,252 
     Total   611,891    72,984    (90,173)   594,702 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   1,083,920    537,451      1,621,371 
                 
Income taxes   233,493    238,452      471,945 
                 
INCOME FROM CONTINUING OPERATIONS   850,427    298,999      1,149,426 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes of $1,271)   1,743        1,743 
                 
CONSOLIDATED NET INCOME   $ 852,170    $ 298,999    $ -    $ 1,151,169 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   $4.14    $1.45        $5.59 
  DILUTED   $4.06    $1.43        $5.49 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   $0.01          $0.01 
  DILUTED   $0.01          $0.01 
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   $4.15    $1.45        $5.60 
  DILUTED   $4.07    $1.43        $5.50 
                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:                
  BASIC               205,685,834 
  DILUTED               209,326,890 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
  
Consolidating Income Statement 
Twelve Months Ended March 31, 2008 vs. 2007 
(Dollars in thousands) 
(Unaudited) 
  
  U.S. Utilities/ Parent & Other   Competitive Businesses   Eliminations   Consolidated
 
OPERATING REVENUES                
Electric   $ (274,484)   $ -    $ 614    $ (273,870)
Natural gas   15,674        15,674 
Competitive businesses   21,464    596,631    28,103    646,198 
     Total   (237,346)   596,631    28,717    388,002 
                 
OPERATING EXPENSES                
Operating and Maintenance:                
  Fuel, fuel related expenses, and gas purchased for resale   (588,237)   61,980      (526,257)
  Purchased power   93,858    (14,850)   27,437    106,445 
  Nuclear refueling outage expenses   (2,654)   21,361      18,707 
  Other operation and maintenance   164,575    75,390    1,279    241,244 
Decommissioning   6,257    21,561      27,818 
Taxes other than income taxes   (19,914)   20,602      688 
Depreciation and amortization   (2,030)   39,461      37,431 
Other regulatory charges (credits )- net   118,699        118,699 
     Total   (229,446)   225,505    28,716    24,775 
                 
OPERATING INCOME   (7,900)   371,126      363,227 
                 
OTHER INCOME (DEDUCTIONS)                
Allowance for equity funds used during construction   (8,923)       (8,923)
Interest and dividend income   11,161    16,691    1,695    29,547 
Equity in earnings (loss) of unconsolidated equity affiliates   (90,052)   (2,692)     (92,744)
Miscellaneous - net   274    (47,983)     (47,709)
     Total   (87,540)   (33,984)   1,695    (119,829)
                 
INTEREST AND OTHER CHARGES                
Interest on long-term debt   5,655    (4,476)     1,179 
Other interest - net   67,855    (2,689)   1,627    66,793 
Allowance for borrowed funds used during construction   7,410        7,410 
Preferred dividend requirements and other   (3,181)   (258)   69    (3,370)
     Total   77,739    (7,423)   1,696    72,012 
                 
INCOME FROM CONTINUING OPERATIONS                
BEFORE INCOME TAXES   (173,179)   344,565      171,386 
                 
Income taxes   130,551    (41,142)     89,409 
                 
INCOME FROM CONTINUING OPERATIONS   (303,730)   385,707      81,977 
                 
INCOME FROM DISCONTINUED OPERATIONS (net of taxes)   (1,743)       (1,743)
                 
CONSOLIDATED NET INCOME   $ (305,473)   $ 385,707      $ 80,234 
                 
                 
                 
EARNINGS PER AVERAGE COMMON SHARE (from continuing operations):                
  BASIC   ($1.33)   $2.07        $0.74 
  DILUTED   ($1.33)   $1.98        $0.65 
EARNINGS PER AVERAGE COMMON SHARE (from discontinued operations):                
  BASIC   ($0.01)         ($0.01)
  DILUTED   ($0.01)         ($0.01)
EARNINGS PER AVERAGE COMMON SHARE:                
  BASIC   ($1.34)   $2.07        $0.73 
  DILUTED   ($1.34)   $1.98        $0.64 
                 
                 
*Totals may not foot due to rounding.                

 

Entergy Corporation
 
Consolidated Cash Flow Statement 
Three Months Ended March 31, 2008 vs. 2007 
(Dollars in thousands) 
(Unaudited) 
             
    2008   2007   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $308,749    $212,195    $96,554 
Adjustments to reconcile consolidated net income to net cash flow            
provided by operating activities:            
  Reserve for regulatory adjustments   (2,909)   10,939    (13,848)
  Other regulatory charges (credits) - net   35,280    23,540    11,740 
  Depreciation, amortization, and decommissioning   290,981    270,240    20,741 
  Deferred income taxes, investment tax credits, and non-current taxes accrued   97,984    384,324    (286,340)
  Equity in earnings of unconsolidated equity affiliates - net of dividends   929    (1,624)   2,553 
  Changes in working capital:            
    Receivables   (9,374)   66,142    (75,516)
    Fuel inventory   (22,665)   194    (22,859)
    Accounts payable   9,522    (282,247)   291,769 
    Taxes accrued     (189,411)   189,411 
    Interest accrued   (34,238)   (22,204)   (12,034)
    Deferred fuel   (195,650)   154,060    (349,710)
    Other working capital accounts   (181,401)   (107,080)   (74,321)
  Provision for estimated losses and reserves   4,034    (16,602)   20,636 
  Changes in other regulatory assets   (59,497)   68,720    (128,217)
  Other   206,425    (77,868)   284,293 
Net cash flow provided by operating activities   448,170    493,318    (45,148)
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (373,317)   (302,567)   (70,750)
Allowance for equity funds used during construction   9,286    17,258    (7,972)
Nuclear fuel purchases   (170,381)   (184,806)   14,425 
Proceeds from sale/leaseback of nuclear fuel   112,700    114,486    (1,786)
Proceeds from sale of assets and businesses     12,663    (12,663)
Payment for purchase of plant   (56,409)     (56,409)
Collections remitted to transition charge account   (8,352)     (8,352)
NYPA value sharing payment   (72,000)     (72,000)
Decrease in other investments   7,974    105,923    (97,949)
Proceeds from nuclear decommissioning trust fund sales   257,718    160,007    97,711 
Investment in nuclear decommissioning trust funds   (294,840)   (189,536)   (105,304)
Net cash flow used in investing activities   (587,621)   (266,572)   (321,049)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   545,000    819,998    (274,998)
  Common stock and treasury stock   4,670    30,889    (26,219)
Retirement of long-term debt   (438,227)   (334,873)   (103,354)
Repurchase of common stock   (158,182)   (558,186)   400,004 
Redemption of preferred stock     (2,250)   2,250 
Dividends paid:            
  Common stock   (144,579)   (108,967)   (35,612)
  Preferred stock   (7,270)   (6,079)   (1,191)
Net cash flow used in financing activities   (198,588)   (159,468)   (39,120)
             
Effect of exchange rates on cash and cash equivalents   17    (11)   28 
             
Net increase (decrease) in cash and cash equivalents   (338,022)   67,267    (405,289)
             
Cash and cash equivalents at beginning of period   1,253,728    1,016,152    237,576 
             
Effect of the reconsolidation of Entergy New Orleans on cash and cash equivalents     17,093    (17,093)
             
Cash and cash equivalents at end of period   $915,706    $1,100,512    ($184,806)
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $183,787    $153,913    $29,874 
    Income taxes   $2,157    $31,433    ($29,276)

 

Entergy Corporation 
 
Consolidated Cash Flow Statement 
Twelve Months Ended March 31, 2008 vs. 2007 
(Dollars in thousands) 
(Unaudited) 
             
    2008   2007   Variance
             
OPERATING ACTIVITIES            
Consolidated net income   $1,231,403    $1,151,169    $80,234 
Adjustments to reconcile consolidated net income to net cash flow            
provided by operating activities:            
  Reserve for regulatory adjustments   (29,422)   5,146    (34,568)
  Other regulatory charges (credits) - net   66,694    (52,005)   118,699 
  Depreciation, amortization, and decommissioning   1,152,351   1,087,755    64,596 
  Deferred income taxes, investment tax credits, and non-current taxes accrued   189,901    735,709    (545,808)
  Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends   (624)   2,638    (3,262)
  Changes in working capital:            
    Receivables   (138,162)   87,859    (226,021)
    Fuel inventory   (33,304)   38,085    (71,389)
    Accounts payable   188,721    (49,938)   238,659 
    Taxes accrued   2,087    (153,958)   156,045 
    Interest accrued   (249)   15,687    (15,936)
    Deferred fuel   (348,798)   544,404    (893,202)
    Other working capital accounts   (147,590)   (187,940)   40,350 
  Provision for estimated losses and reserves   (38,656)   8,687    (47,343)
  Changes in other regulatory assets   126,519    (45,828)   172,347 
  Other   293,751    (224,158)   517,909 
Net cash flow provided by operating activities   2,514,622    2,963,312    (448,690)
             
INVESTING ACTIVITIES            
Construction/capital expenditures   (1,648,780)   (1,264,956)   (383,824)
Allowance for equity funds used during construction   34,770    43,692    (8,922)
Nuclear fuel purchases   (394,307)   (420,027)   25,720 
Proceeds from sale/leaseback of nuclear fuel   167,280    240,849    (73,569)
Proceeds from sale of assets and businesses   400    89,822    (89,422)
Payment for purchase of plant   (392,620)     (392,620)
Collections remitted to transition charge account   (27,625)     (27,625)
NYPA value sharing payment   (72,000)     (72,000)
Insurance proceeds received for property damages   83,104    8,742    74,362 
Decrease (increase) in other investments   (56,229)   60,772    (117,001)
Proceeds from nuclear decommissioning trust fund sales   1,681,295    653,717    1,027,578 
Investment in nuclear decommissioning trust funds   (1,814,068)   (761,242)   (1,052,826)
Other regulatory investments     (14,589)   14,589 
Net cash flow used in investing activities   (2,438,780)   (1,363,220)   (1,075,560)
             
FINANCING ACTIVITIES            
Proceeds from the issuance of:            
  Long-term debt   2,591,138    1,909,126    682,012 
  Preferred stock   10,000      10,000 
  Common stock and treasury stock   52,611    89,539    (36,928)
Retirement of long-term debt   (1,473,299)   (1,483,597)   10,298 
Repurchase of common stock   (815,574)   (1,142,379)   326,805 
Redemption of preferred stock   (55,577)   (183,881)   128,304 
Changes in credit line borrowings - net     10,000    (10,000)
Dividends paid:            
  Common stock   (542,939)   (445,731)   (97,208)
  Preferred stock   (27,066)   (27,543)   477 
Net cash flow used in financing activities   (260,706)   (1,274,466)   1,013,760 
             
Effect of exchange rates on cash and cash equivalents   58    (3,045)   3,103 
             
Net increase (decrease) in cash and cash equivalents   (184,806)   322,581    (507,387)
              
Cash and cash equivalents at beginning of period   1,100,512    777,931    322,581 
             
Cash and cash equivalents at end of period   $915,706    $1,100,512    ($184,806)
             
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:            
  Cash paid (received) during the period for:            
    Interest - net of amount capitalized   $641,071    $522,482    $118,589 
    Income taxes   $347,532    $172,171    $175,361