EX-99.1 2 a03810991.htm a03810991.htm
 


 
For further information:
Paula Waters, VP, Investor Relations
Phone 504/576-4380, Fax 504/576-2897
                                                pwater1@entergy.com
 
INVESTOR NEWS
 Exhibit 99.1
August 3, 2010
ENTERGY REPORTS SECOND QUARTER EARNINGS

NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported second quarter 2010 earnings of $1.65 per share on an as-reported basis and $1.71 per share on an operational basis, as shown in Table 1 below.  A more detailed discussion of quarterly results begins on page 2 of this release.

Table 1:  Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2010 vs. 2009
(Per share in U.S. $)
            
 
Second Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
As-Reported Earnings
1.65
1.14
0.51
2.77
2.35
0.42
             
Less Special Items
(0.06)
(0.09)
0.03
(0.26)
(0.17)
(0.09)
             
Operational Earnings
1.71
1.23
0.48
3.03
2.52
0.51
             
Weather Impact
0.09
(0.01)
0.10
0.26
(0.03)
0.29
             

Operational Earnings Highlights for Second Quarter 2010
 
·  
Utility’s results were higher due primarily to higher net revenue from increased sales volumes across all customer classes, including the effect of warmer-than-normal weather, and previous rate actions.
·  
Entergy Nuclear’s earnings increased as a result of higher net revenue resulting primarily from higher generation due to fewer planned and unplanned outage days and the absence of significant impairments associated with decommissioning trusts recorded in second quarter 2009.
·  
Parent & Other’s results were lower due primarily to higher income tax expense on Parent & Other activities.

“While the national economy continues to produce mixed results, both our utility and  non-utility nuclear businesses are delivering solid performance through our focus on operational excellence, attentive management of risk and our strong cash position,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer.  “Even as we achieve near-term success in this uncertain economic climate, we continue to plan and execute with the long-term goal of producing sustained value for all of our stakeholders.”

Entergy’s business highlights include the following:
 
·  
The Arkansas Public Service Commission approved a unanimous settlement agreement reflecting a rate increase of approximately $63.7 million for Entergy Arkansas.
·  
Entergy Gulf States Louisiana, L.L.C. and Entergy Louisiana, LLC received over $700 million of storm financing proceeds, including $290 million in storm reserves.
·  
Vermont Yankee operated for 532 consecutive days prior to its planned refueling outage, its second such breaker-to-breaker run in the past four and a half years.
·  
Employees at the Palisades Power Plant took home the highest honor in the Nuclear Energy Institute’s annual Top Industry Practice Awards, the B. Ralph Sylvia “Best of the Best” Award, over 14 other category winners.

Entergy will host a teleconference to discuss this release at 10 a.m. CT on Tuesday, August 3, 2010, with access by telephone, 719-457-2080, confirmation code 1327346.  The call and presentation slides can also be accessed via Entergy’s website at www.entergy.com.  A replay of the teleconference will be available through August 10, 2010, by dialing 719-457-0820, confirmation code 1327346.  The replay will also be available on Entergy’s website at www.entergy.com.

I.  
Consolidated Results

Consolidated Earnings

Table 2 provides a comparative summary of consolidated earnings per share for second quarter and year-to-date 2010 versus 2009, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings.  Utility’s earnings increased quarter-over-quarter as a result of higher net revenue due primarily to increased sales volumes across all customer classes, including warmer-than-normal weather, and the effect of previous rate actions, with the increase partially offset by higher interest expense.  Entergy Nuclear’s second quarter 2010 earnings increased as a result of higher net revenue due primarily to higher generation resulting from fewer planned and unplanned outage days and the absence of significant impairments associated with decommissioning trusts recorded in second quarter 2009.  Partially offsetting the increase was lower pricing and higher operation and maintenance expense.  Parent and Other’s results were lower in the current period compared to a year ago due primarily to higher income tax expense on Parent & Other activities.  Entergy’s results for the current period also reflect the positive effect of accretion associated with the company’s share repurchase programs.

Table 2: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2010 vs. 2009 (see Appendix E for definitions of certain measures)
(Per share in U.S. $)
 
Second Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
As-Reported
            
Utility
1.18
0.74
0.44
1.91
1.31
0.60
Entergy Nuclear
0.63
0.40
0.23
1.12
1.32
(0.20)
Parent & Other
(0.16)
-
(0.16)
(0.26)
(0.28)
0.02
  Consolidated As-Reported Earnings
1.65
1.14
0.51
2.77
2.35
0.42
             
Less Special Items
            
Utility
-
-
-
-
-
-
Entergy Nuclear
(0.08)
(0.08)
-
(0.36)
(0.11)
(0.25)
Parent & Other
0.02
(0.01)
0.03
0.10
(0.06)
0.16
  Consolidated Special Items
(0.06)
(0.09)
0.03
(0.26)
(0.17)
(0.09)
             
Operational
            
Utility
1.18
0.74
0.44
1.91
1.31
0.60
Entergy Nuclear
0.71
0.48
0.23
1.48
1.43
0.05
Parent & Other
(0.18)
0.01
(0.19)
(0.36)
(0.22)
(0.14)
  Consolidated Operational Earnings
1.71
1.23
0.48
3.03
2.52
0.51
Weather Impact
0.09
(0.01)
0.10
0.26
(0.03)
0.29
             

Detailed earnings variance analysis is included in Appendix A-1 and Appendix A-2 to this release.  In addition, Appendix A-3 provides details of special items shown in Table 2 above.

Consolidated Net Cash Flow Provided by Operating Activities

Entergy’s net cash flow provided by operating activities in second quarter 2010 was $794 million compared to $642 million in second quarter 2009.  The overall quarterly increase was due primarily to:
 
·  
the absence of hurricane and ice storm restoration spending which affected cash flow during second quarter 2009,
·  
higher net revenue at the Utility and Entergy Nuclear, and
·  
lower refueling outage costs due to fewer scheduled outages compared to second quarter 2009 at Entergy Nuclear.

Partially offsetting these increases was higher working capital requirements at the Utility.
 
Table 3 provides the components of net cash flow provided by operating activities contributed by each business with quarterly and year-to-date comparisons.

Table 3:  Consolidated Net Cash Flow Provided by Operating Activities
Second Quarter and Year-to-Date 2010 vs. 2009
(U.S. $ in millions)
 
Second Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
Utility
577
527
50
993
678
315
Entergy Nuclear
244
119
125
550
372
178
Parent & Other
(27)
(4)
(23)
(75)
(34)
(41)
    Total Net Cash Flow Provided by Operating Activities
794
642
152
1,468
1,016
452
             

II.  
Utility

In second quarter 2010, Utility’s as-reported and operational earnings were $1.18 per share compared to $0.74 per share on the same bases in second quarter 2009.  Earnings for the Utility in the current quarter reflect higher net revenue due to increased sales across all customer classes and rate adjustments at Entergy Gulf States Louisiana, Entergy Louisiana and Entergy Mississippi under their formula rate plans.  In addition, second quarter 2009 results included a regulatory charge at Entergy Texas associated with a May 2009 Federal Energy Regulatory Commission Order.  Partially offsetting higher Utility net revenue was an increase in interest expense on higher debt borrowings.

Electricity usage, in gigawatt-hour sales by customer segment, is included in Table 4.  Current quarter sales reflect the following:
 
·  
Residential sales in second quarter 2010, on a weather-adjusted basis, increased 2.1 percent compared to second quarter 2009.
·  
Commercial and governmental sales, on a weather-adjusted basis, increased 1.5 percent quarter over quarter.
·  
Industrial sales in the second quarter increased 12.2 percent compared to the same quarter of 2009.

Residential, commercial and industrial classes reflected sales growth with a continuation of the recovery in economic activity evidenced earlier this year in Entergy’s service territory. The improvement in industrial sales in second quarter 2010 was driven by the need to build inventories, a rebound in the auto industry and rising exports with the chemicals, refineries and primary metals sectors realizing most of the benefits.  Some declines in pipelines and pulp and paper partially offset an otherwise robust recovery in the industrial base.  Small and mid-sized industrial customers continued to see recovery benefiting from global industrial expansion. Warmer-than-normal weather also contributed to the increase in sales volume.

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

Table 4:  Utility Operational Performance Measures
Second Quarter and Year-to-Date 2010 vs. 2009 (see Appendix E for definitions of measures)
   
 
Second Quarter
Year-to-Date
 
2010
2009
% Change
% Weather Adjusted
2010
2009
% Change
% Weather Adjusted
GWh billed
                
   Residential
7,705
7,100
8.5%
2.1%
17,350
14,992
15.7%
3.0%
   Commercial and governmental
7,384
7,095
4.1%
1.5%
14,448
13,851
4.3%
2.3%
   Industrial
9,862
8,790
12.2%
12.2%
18,596
16,929
9.8%
9.8%
   Total Retail Sales
24,951
22,985
8.6%
5.8%
50,394
45,772
10.1%
5.3%
   Wholesale
971
1,313
(26.0)%
  
2,287
2,700
(15.3)%
  
   Total Sales
25,922
24,298
6.7%
  
52,681
48,472
8.7%
  
O&M expense per MWh
$19.21
$20.96
(8.3)%
  
$18.24
$19.75
(7.6)%
  
Number of retail customers
                
   Residential
        
2,351,556
2,330,337
0.9%
  
   Commercial and governmental
        
350,313
346,414
1.1%
  
   Industrial
        
45,841
43,864
4.5%
  
                 
 
Appendix B provides information on selected pending local and federal regulatory cases.
 
III.  
Entergy Nuclear

Entergy Nuclear earned $0.63 per share on an as-reported basis in second quarter 2010, compared to as-reported earnings of $0.40 per share in second quarter 2009.  On an operational basis, second quarter 2010 Entergy Nuclear earnings were $0.71 per share versus $0.48 per share in the second quarter of the prior year.  Entergy Nuclear’s operational earnings increased as a result of higher net revenue due primarily to higher generation resulting from fewer planned and unplanned outages.  Also, contributing to the increase in earnings was the absence of significant impairments associated with decommissioning trusts recorded in second quarter 2009.  Partially offsetting the increase was lower pricing and higher non-fuel operation and maintenance expense due primarily to tritium remediation work at the Vermont Yankee site, a lower amount deferred for later amortization due to fewer refueling outage days, and higher pension and benefits expense.

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

Table 5:  Entergy Nuclear Operational Performance Measures
Second Quarter and Year-to-Date 2010 vs. 2009 (see Appendix E for definitions of measures)
   
 
Second Quarter
Year-to-Date
 
2010
2009
% Change
2010
2009
% Change
Net MW in operation
4,998
4,998
-%
4,998
4,998
-%
Average realized price per MWh
$57.69
$59.22
(3)%
$58.22
$61.66
(6)%
Production cost per MWh (a)
$24.40
$24.30
-%
$24.05
$23.69
2%
Non-fuel O&M expense/purchased power per MWh (a)
$25.49
$25.33
1%
$24.54
$23.80
3%
GWh billed
9,868
8,980
10%
20,123
19,054
6%
Capacity factor
90%
81%
9%
92%
87%
5%
Refueling outage days:
            
    Indian Point 2
11
-
  
33
-
  
    Indian Point 3
-
15
  
-
36
  
    Palisades
-
32
  
-
41
  
    Pilgrim
-
31
  
-
31
  
    Vermont Yankee
29
-
  
29
-
  
             
 
(a)
Second quarter and year-to-date periods in 2009 and 2010 exclude the effect of the special item for non-utility nuclear spin-off expenses
 
Table 6 provides capacity and generation sold forward projections for Entergy Nuclear.
 
Table 6:  Entergy Nuclear’s Capacity and Generation Projected Sold Forward
Third Quarter 2010 through 2014 (see Appendix E for definitions of measures)
 
Balance of
2010
2011
2012
2013
2014
Energy
          
Planned TWh of generation
20
41
41
40
41
Percent of planned generation sold forward (b)
          
Unit-contingent
53%
73%
40%
15%
14%
Unit-contingent with availability guarantees
38%
17%
14%
6%
3%
Firm LD
-%
2%
2%
-%
-%
    Offsetting positions
-%
(2)%
(2)%
-%
-%
Total Energy Sold Forward (net)
91%
90%
54%
21%
17%
Average contract price per MWh (c)
$58
$54
$53
$50
$50
           
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%
25%
18%
16%
16%
Capacity contracts
46%
26%
30%
13%
-%
Total Capacity Sold Forward
72%
51%
48%
29%
16%
Average capacity contract price per kW per month
$3.2
$3.5
$2.9
$2.6
$-
           
Blended Capacity and Energy Recap (based on revenues)
          
Percent of planned energy and capacity sold forward
92%
90%
57%
21%
15%
Average contract revenue per MWh (c)
$60
$55
$55
$53
$50
           
 
(b)  A portion of EN’s total planned generation sold forward through March 2012 is associated with the Vermont Yankee contract, for which pricing may be adjusted.
(c)  Average contract prices exclude payments that may be owed under the value sharing agreement with the New York Power Authority.
 
IV.  
Parent & Other

Parent & Other reported a loss of $(0.16) per share on an as-reported basis in second quarter 2010 compared to breakeven performance on an as-reported basis in second quarter 2009.  On an operational basis, Parent & Other reported a loss of $(0.18) per share in the current quarter and earnings of $0.01 per share in second quarter 2009.  Higher income tax expense on Parent & Other activities was the primary factor driving results for the quarter.

V.  
Other Financial Performance Highlights

Earnings Guidance

Entergy affirmed its earnings guidance ranges of $5.95 to $6.80 per share on an as-reported basis and $6.40 to $7.20 per share on an operational basis.  On April 15, 2010, Entergy revised its 2010 as-reported earnings guidance to a range of $5.95 to $6.80 per share from $6.15 to $6.95 per share to reflect the potential charge in connection with the previously announced business unwind of the internal organizations created for Enexus Energy Corporation and EquaGen LLC.  This charge will be classified as a special item in 2010, and therefore is excluded from the operational earnings per share guidance range. The total potential charge estimated at $0.40 to $0.45 per share, as of April 2010, includes previously identified special items for spin-off dis-synergies and expenses for outside services provided to pursue the spin-off, for which $0.25 per share had already been reflected in as-reported earnings guidance.  Entergy has initiated efforts to eliminate spin-off dis-synergies as soon as possible during 2010.

Year-over-year changes are shown as point estimates and are applied to 2009 earnings to compute the 2010 guidance midpoint.  Drivers for the 2010 operational guidance range are listed separately.  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.  The current 2010 earnings guidance is detailed in Table 7 below.

Table 7:  2010 Earnings Per Share Guidance – As-Reported and Operational
(Per share in U.S. $) – Prepared October 2009; As-Reported Updated April 2010 (d)
 
 
 
Segment
 
 
Description of Drivers
2009 Earnings per Share
 
Expected Change
2010
Guidance
Midpoint
2010 Guidance Range
           
Utility,  Parent,          & Other (includes Non-Nuclear Wholesale Assets)
2009 Operational Earnings per Share
3.22
      
Adjustment to normalize weather
  
0.01
    
Increased net revenue due to sales growth and rate actions
  
0.65
    
Increased non-fuel operation and maintenance expense
  
(0.05)
    
Increased depreciation expense
  
(0.08)
    
Decreased other income
  
(0.15)
    
Increased interest expense
  
(0.05)
    
Non-nuclear wholesale assets contribution
  
(0.20)
    
Accretion / other
  
0.20
    
Subtotal
3.22
0.33
3.55
  
           
Entergy Nuclear
2009 Operational Earnings per Share
3.45
      
Decreased net revenue due to lower pricing and volume
  
(0.15)
    
Increased non-fuel operation and maintenance expense
  
(0.20)
    
Increased depreciation expense
  
(0.05)
    
Increased other income
  
0.20
    
Accretion / other
  
-
    
Subtotal
3.45
(0.20)
3.25
  
           
Consolidated
Operational
2010 Operational Earnings per Share
6.67
0.13
6.80
 
6.40 – 7.20
           
Consolidated
As-Reported
2009 As-Reported Earnings per Share
        
 
Changes detailed above
  
0.13
    
 
2010 Entergy Nuclear spin-off dis-synergies
  
(0.25)
    
 
2009 Entergy Nuclear spin-off dis-synergies
  
0.23
    
 
2009 Non-utility nuclear spin-off expenses for outside services at Parent & Other
  
0.14
    
 
2010 As-Reported Earnings per Share Guidance Range
6.30
0.25
6.55
6.15 – 6.95
 
Incremental special items related to the spin-off in connection with the business unwind
  
(0.15) – (0.20)
    
 
Revised 2010 As-Reported Earnings per Share Guidance Range
6.30
0.05 – 0.10
6.35 – 6.40
5.95 – 6.80
           
 
(d)  Updated February 2010 to reflect 2009 final results and in April 2010 to reflect the special item for the total potential charge for the business unwind of Enexus Energy Corporation and EquaGen LLC.

Key assumptions supporting 2010 earnings guidance are as follows:

Utility, Parent & Other
 
·  
Normal weather
·  
Retail sales growth of around 4.5% on a weather adjusted basis; around 3% on a normalized basis excluding the effects of industrial expansion
·  
Increased revenue associated with rate actions, including storm securitization which is offset by increased interest expense as noted below
·  
Increased non-fuel operation and maintenance expense resulting from compensation and benefits expense and increased refueling outage amortization, largely offset by lower customer write-offs and the absence of 2009 storm related items
·  
Increased depreciation associated with capital spending at the Utility
·  
Decreased other income due to lower carrying charges and the absence of the 2009 gain on sale of land at the Utility
·  
Increased interest expense associated with increased debt outstanding at the Utility, including storm securitization, partially offset by lower debt outstanding at the Parent
·  
Break-even operations targeted for the non-nuclear wholesale assets business
·  
Accretion / other is primarily driven by the effect of share repurchases in both 2009 and 2010

Entergy Nuclear
 
·  
40 TWh of total output, reflecting an approximate 92 percent capacity factor, including 30 day refueling outages at Indian Point 2 and Vermont Yankee in Spring 2010 and FitzPatrick and Palisades in Fall 2010
·  
88 percent of energy sold under existing contracts; 12 percent sold into the spot market
·  
$57/MWh average energy contract price; $56/MWh average unsold energy price based on published market prices at the end of September 2009 (market prices have since declined with 2010 now averaging around the mid-$40s per MWh)
·  
Palisades PPA revenue amortization of $46 million in 2010, down from $53 million in 2009
·  
Non-fuel operation and maintenance expense, including refueling outage expense and purchased power, around $25/MWh resulting from increased compensation and benefits expense, higher NRC fees and increased refueling outage amortization
·  
Increased depreciation associated with capital spending
·  
Increased other income due primarily to the absence of 2009 decommissioning trust other than temporary impairments; earnings guidance does not incorporate assumptions for other than temporary impairments as financial market outcomes are outside of Entergy Nuclear’s control and difficult to predict
·  
Offsetting effects of accretion / other are primarily driven by the effect of share repurchases in both 2009 and 2010, largely offset by a higher effective income tax rate in 2010

Share Repurchase Program
 
·  
2010 average fully diluted shares outstanding of approximately 187 million (including effects of share repurchases in both 2009 and 2010)

Effective Income Tax Rate
 
·  
2010 assumes an overall effective income tax rate of 36 percent

Revised 2010 As-Reported Earnings Guidance Range (April 2010)
 
·  
In connection with the business unwind of the internal organizations for Enexus Energy Corporation and EquaGen LLC, the estimated range of a total potential charge of $0.40 to $0.45 per share reflects the write-off of capitalized costs incurred to date and certain other costs in accordance with generally accepted accounting principles.  This charge will be reported as a special item.  The range for this charge also includes the previously identified special items for spin-off dis-synergies and expenses for outside services provided to pursue the spin-off in 2010.
 
Earnings guidance for 2010 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.  Traditionally, the most significant variables for earnings drivers are utility sales for Utility, Parent & Other and energy prices for Entergy Nuclear.  The broader earnings guidance range for 2010 also takes into consideration the following:
 
·  
A number of regulatory initiatives (rate actions) underway across the Utility jurisdictions
·  
Timing flexibility for executing the share repurchase program across the year (guidance assumed execution on a ratable basis)
·  
Potential outcomes for projected pension plan discount rate (guidance assumed 6.75%; actual is 6.1– 6.3%)

Estimated annual impacts shown in Table 8 are intended to be indicative rather than precise guidance.

Table 8:  2010 Earnings Sensitivities
(Per share in U.S. $) – Prepared October 2009
 
Variable
 
2010 Guidance Assumption
 
Description of Change
Estimated
Annual Impact (e)
Utility, Parent & Other
      
Sales growth
  Residential
  Commercial / Governmental
  Industrial
 
Around 4.5% total sales growth on a weather adjusted basis
 
1% change in Residential MWh sold
1% change in Comm / Govt MWh sold
1% change in Industrial MWh sold
 
- / + 0.05
- / + 0.04
- / + 0.02
Rate base
Growing rate base
$100 million change in rate base
- / + 0.03
Return on equity
Authorized regulatory ROEs
1% change in allowed ROE
- / + 0.33
Entergy Nuclear
      
Capacity factor
92% capacity factor
1% change in capacity factor
- / + 0.07
Energy price
12% energy unsold at $56/MWh in 2010
$10/MWh change for unsold energy
- / + 0.15
Non-fuel operation and maintenance expense
$25/MWh non-fuel operation and maintenance expense/purchased power
$1/MWh change
+ / - 0.13
Outage (lost revenue only)
92% capacity factor, including refueling outages for four nuclear units
1,000 MW plant for 10 days at average portfolio energy price of $57/MWh for sold and $56/MWh for unsold volumes in 2010
- 0.04 / n/a
 
 
                    (e)  Based on 2009 average fully diluted shares outstanding of approximately 196 million.



VI.  
Long-term Financial Outlook

Overarching Financial Aspiration

Entergy continues to aspire to deliver superior value to owners as measured by total shareholder return.  The company believes top-quartile total shareholder returns are achieved by:
 
·  
Operating the business with the highest expectations and standards,
·  
Executing on earnings growth opportunities while managing commodity and other business risks,
·  
Delivering returns at or above the risk-adjusted cost of capital for each initiative, project, business, etc.,
·  
Maintaining credit quality and flexibility,
·  
Deploying capital in a disciplined manner, whether for new investments, share repurchases, dividends or debt retirements, and
·  
Being disciplined as either a buyer or a seller consistent with the market or Entergy’s proprietary point-of-view.

Long-term Financial Outlook

Over the next five years, Entergy believes it offers a competitive utility investment opportunity combined with a valuable option represented by a unique, clean, non-utility generation business located in attractive power markets.  Table 9 summarizes the current long-term financial outlook.

Table 9:  Long-term Financial Outlook
Prepared April 2010
     
Category
Long-term Outlook
Assumption
     
Earnings
Utility net income
5 to 6 percent compound annual net income growth rate over the 2010 – 2014 horizon (2009 base year).
     
 
Entergy Nuclear results
Revenue projections over the next five years are expected to routinely fluctuate based on commodity markets – one of the most important fundamental drivers for this business.  While current forward power prices would show a decline in the long-term financial outlook for this business compared to 2010, Entergy Nuclear offers a valuable option taking into consideration the contango forward curve and the potential positive effects of an economic rebound (on market heat rates, capacity markets and natural gas prices), new environmental legislation and / or regulation over the longer term.
     
 
Corporate results
Results will vary depending upon factors including future effective income tax and interest rates, the amount of share repurchases and the ability to achieve the targeted break-even financial results for the non-nuclear wholesale assets business.
     
Capital Deployment
A balanced capital investment / return program
Entergy continues to see productive investment opportunities at the Utility in the coming years, as well as an investment outlook at Entergy Nuclear that supports continued safe, secure and reliable operations and opportunistic investments.  Entergy aspires to fund this capital program without issuing traditional common equity, while maintaining a competitive capital return program.  Given the company’s financial profile with a mix of utility and non-utility businesses, return of capital is expected to be provided similar to the past through a combination of common stock dividends and share repurchases.  Absent other attractive investment opportunities, capital deployment through dividends and share repurchases could total as much as $5 billion over the next five years under the current long-term business outlook. The amount of share repurchases may vary as a result of material changes in business results or capital spending or new investment opportunities.
     
Credit Quality
  
Strong liquidity.
 
Solid credit metrics that support ready access to capital on reasonable terms.
     


 
The long-term financial outlook should be considered in association with 2014 financial sensitivities as shown in Table 10.  These sensitivities illustrate the estimated change in earnings or Adjusted EBITDA resulting from changes in business drivers.  Estimated impacts shown in Table 10 are intended to be illustrative.

Table 10:  2014 Financial Sensitivities – Illustrative
(see Appendix E for definitions of measures)
Prepared April 2010
 
Long-term Outlook
 
Assumption
 
Drivers
 
Estimated
Annual Impact
Utility
    
(Per share in U.S. $) (f)
       
Earnings growth
 
5 – 6% compound annual net income growth rate from 2010 through 2014 (2009 base)
 
1% retail sales growth
$100 million/year investment in service
1% change in allowed ROE
1% change in non-fuel operation and maintenance expense
$100 million change in debt
- / + 0.13
- / + 0.03
- / + 0.44
+ / - 0.07
+ / - 0.02
 
Entergy Nuclear
    
 
(Adjusted EBITDA 
in U.S. $; millions)
       
Adjusted EBITDA
Decline in Adjusted EBITDA at current forward power prices compared to 2010, plus option value
+0 – 1,500 Btu/kWh heat rate expansion
+$0 – 30/ton CO2
+$0 – 4/kW-mo. capacity price
- / + $0 – 2/MMBtu change in gas price
Up to 300
Up to 500
Up to 200
Down / Up to 600
 
Corporate
    
 
(Per share in U.S. $) (f)
       
Balanced capital investment  / return / credit quality
  
1% change in interest rate on $1 billion debt
1% change in overall effective tax rate
$500 million share repurchase
+ / - 0.03
+ / - 0.10
+ 0.20 – 0.25
(f) Based on estimated 2010 average fully diluted shares outstanding of approximately 187 million.


VII.  
Appendices

Six appendices are presented in this section as follows:

·  
Appendix A includes earnings per share variance analysis and detail on special items that relate to the current quarter and year-to-date results.
·  
Appendix B provides information on selected pending local and federal regulatory cases.
·  
Appendix C 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 D provides a summary of planned capital expenditures for the next three years.
·  
Appendix E provides definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
·  
Appendix F provides a reconciliation of GAAP to non-GAAP financial measures used in this release.


A.  
 Variance Analysis and Special Items

Appendix A-1 and Appendix A-2 provides details of second quarter and year-to-date 2010 vs. 2009 as-reported and operational earnings variance analysis for “Utility,” “Entergy Nuclear,” “Parent & Other,” and “Consolidated.”

Appendix A-1: As-Reported and Operational Earnings Per Share Variance Analysis
Second Quarter 2010 vs. 2009
(Per share in U.S. $, sorted in consolidated
operational column, most to least favorable)
 
Utility
  
Entergy Nuclear
  
Parent & Other
  
Consolidated
 
As-Reported
Opera-
tional
  
As-Reported
Opera-tional
  
As- Reported
Opera-tional
  
As- Reported
Opera-tional
2009 earnings
0.74
0.74
  
0.40
0.48
  
-
0.01
  
1.14
1.23
Net revenue
0.40
0.40
(g)
0.10
0.10
(h)
-
-
  
0.50
0.50
Other than temporary impairment losses
-
-
  
0.19
0.19
(i)
-
-
  
0.19
0.19
Share repurchase effect
0.04
0.04
  
0.02
0.02
  
-
-
  
0.06
0.06
Depreciation/ amortization expense
0.02
0.02
  
-
-
  
-
-
  
0.02
0.02
Interest and other charges
(0.05)
(0.05)
(j)
0.05
0.03
(k)
0.02
0.02
  
0.02
-
Nuclear refueling outage expense
-
-
  
(0.01)
(0.01)
  
-
-
  
(0.01)
(0.01)
Decommissioning expense
-
-
  
(0.01)
(0.01)
  
-
-
  
(0.01)
(0.01)
Taxes other  than income taxes
(0.01)
(0.01)
  
-
-
  
-
-
  
(0.01)
(0.01)
Other operation & maintenance expense
0.04
0.04
  
(0.10)
(0.08)
(l)
0.05
0.02
(m)
(0.01)
(0.02)
Other income (deductions)
(0.03)
(0.03)
  
(0.01)
(0.01)
  
(0.04)
(0.04)
  
(0.08)
(0.08)
Income taxes – other
0.03
0.03
  
-
-
  
(0.19)
(0.19)
(n)
(0.16)
(0.16)
2010 earnings
1.18
1.18
  
0.63
0.71
  
(0.16)
(0.18)
  
1.65
1.71
                       

Appendix A-2: As-Reported and Operational Earnings Per Share Variance Analysis
Year-to-Date Second Quarter 2010 vs. 2009
(Per share in U.S. $, sorted in consolidated
operational column, most to least favorable)
 
Utility
  
Entergy Nuclear
  
Parent & Other
  
Consolidated
 
As-Reported
Opera-
tional
  
As-Reported
Opera-tional
  
As- Reported
Opera-tional
  
As- Reported
Opera-tional
2009 earnings
1.31
1.31
  
1.32
1.43
  
(0.28)
(0.22)
  
2.35
2.52
Net revenue
0.69
0.69
(g)
(0.05)
(0.05)
(h)
0.02
0.02
  
0.66
0.66
Other than temporary impairment losses
-
-
  
0.23
0.23
(i)
-
-
  
0.23
0.23
Share repurchase effect
0.07
0.07
(o)
0.04
0.04
  
(0.01)
(0.01)
  
0.10
0.10
Interest and other charges
(0.10)
(0.10)
(j)
(0.06)
0.05
(k)
0.07
0.07
(p)
(0.09)
0.02
Depreciation/ amortization expense
(0.01)
(0.01)
  
(0.01)
-
  
-
-
  
(0.02)
(0.01)
Decommissioning expense
(0.01)
(0.01)
  
(0.01)
(0.01)
  
-
-
  
(0.02)
(0.02)
Taxes other than income taxes
(0.02)
(0.02)
  
-
-
  
-
-
  
(0.02)
(0.02)
Nuclear refueling outage expense
(0.01)
(0.01)
  
(0.02)
(0.02)
  
-
-
  
(0.03)
(0.03)
Other income (deductions)
(0.05)
(0.05)
(q)
0.04
0.04
  
(0.03)
(0.03)
  
(0.04)
(0.04)
Other operation & maintenance expense
-
-
  
(0.24)
(0.11)
(l)
0.05
(0.01)
(m)
(0.19)
(0.12)
Income taxes – other
0.04
0.04
  
(0.12)
(0.12)
(r)
(0.08)
(0.18)
(n)
(0.16)
(0.26)
2010 earnings
1.91
1.91
  
1.12
1.48
  
(0.26)
(0.36)
  
2.77
3.03
                       


Utility Net Revenue Variance Analysis
2010 vs. 2009
($ EPS)
Second Quarter
Year-to-Date
Weather
0.10
Weather
0.29
Sales growth/ pricing
0.17
Sales growth/ pricing
0.24
Regulatory charge
0.07
Regulatory charge
0.07
Other
0.06
Other
0.09
Total
0.40
Total
0.69
 
(g)
The increase in the current quarter and year-to-date periods is due primarily to increased sales volumes across all customer classes and higher pricing resulting from formula rate plan adjustments for Entergy Gulf States Louisiana, Entergy Louisiana and Entergy Mississippi. Favorable weather also contributed to the quarter and year-to-date periods, as did the absence of a regulatory charge at Entergy Texas associated with a May 2009 Federal Energy Regulatory Commission Order.
 
 
(h)
The increase in the quarter is due primarily to higher revenues due to fewer planned and unplanned outage days, partially offset by lower pricing.  Lower pricing was the primary factor contributing to lower results in the year-to-date period.
 
 
(i)
The increase in the quarter and year-to-date periods is due to the absence of significant impairments associated with decommissioning trust fund investments recorded in both first and second quarters of 2009.
 
 
(j)    The decrease in the quarter and year-to-date periods is due to higher interest expense on increased debt borrowings.
 
 
(k)    As-reported interest expense drivers include a first quarter 2010 charge for the balance of fees associated with cancellation of the Enexus Energy Corporation credit facility.  Going forward, no additional fees will be incurred, resulting in lower interest expense in second quarter 2010.  In addition, the year-to-date change on both as-reported and operational bases reflects lower affiliate guarantee fee expenses with Parent & Other.
 
 
(l)
The decrease in the quarter and year-to-date periods is due primarily to higher nuclear spending, due primarily to a lower amount deferred for later amortization due to fewer refueling outages in the first half of 2010, incremental costs associated with the remediation of the tritium leak at Vermont Yankee, as well as higher pension and benefits expense.  In addition, as-reported results for both periods reflect non-utility nuclear spin-off expenses, including the business unwind of Enexus and EquaGen LLC.
 
 
(m)  The increase, on an as-reported basis, in both the quarter and year-to-date periods reflect the reduction in the overall level of expenses in 2010 associated with the non-utility nuclear spin-off and business unwind of Enexus and EquaGen.
 
 
(n)   The decrease in the quarter and year-to-date periods is due primarily to decreases in valuation allowances on loss carryovers recorded in second quarter 2009.  In addition, the year-to-date decrease on an as-reported basis reflects an offset for tax benefits recorded in connection with the Enexus and EquaGen business unwind decision resulting from implementation expenses that previously were not deductible for tax purposes.
 
(o)   The increase in the year-to-date period represents accretion associated with Entergy’s share repurchase programs.
 
 
(p)   The increase in the year-to-date period is due primarily to a lower average revolver rate and lower parent borrowings including parent debt redemptions.
 
 
(q)   The decrease in the year-to-date period is due primarily to lower storm related carrying charges compared to the same period in 2009.
 
 
(r)   The decrease is due primarily to the change in tax law associated with federal health care legislation enacted in 2010.
 

 

Appendix A-3 lists special items by business with quarter-to-quarter and year-to-date comparisons.  Amounts are shown on both earnings per share and net income bases.  Special items are those events that are less routine, are related to prior periods, or are related to discontinued businesses.  Special items are included in as-reported earnings per share consistent with generally accepted accounting principles (GAAP), but are excluded from operational earnings per share.  As a result, operational earnings per share is considered a non-GAAP measure.

Appendix A-3:  Special Items (shown as positive / (negative) impact on earnings)
Second Quarter and Year-to-Date 2010 vs. 2009
(Per share in U.S. $)
 
Second Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
Utility
            
None
-
-
-
-
-
-
             
Entergy Nuclear
            
Non-utility nuclear spin-off expenses (s)
(0.08)
(0.08)
-
(0.36)
(0.11)
(0.25)
             
Parent & Other
            
Non-utility nuclear spin-off expenses (s)
0.02
(0.01)
0.03
0.10
(0.06)
0.16
Total Special Items
(0.06)
(0.09)
0.03
(0.26)
(0.17)
(0.09)
             
(U.S. $ in millions)
            
 
Second Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
Utility
            
None
-
-
-
-
-
-
             
Entergy Nuclear
            
   Non-utility nuclear spin-off expenses (s)
(14.5)
(15.1)
0.6
(68.8)
(21.7)
(47.1)
             
Parent & Other
            
   Non-utility nuclear spin-off expenses (s)
4.0
(2.1)
6.1
18.5
(12.7)
31.2
Total Special Items
(10.5)
(17.2)
6.7
(50.3)
(34.4)
(15.9)
             
 
 
(s)  Includes non-utility nuclear spin-off dis-synergies and expenses for outside services to pursue the previously planned spin-off in both years and the charge in connection with the business unwind of Enexus Energy Corporation and EquaGen LLC in 2010.



B.  
Regulatory Summary
 
 
Appendix B provides a summary of selected regulatory cases and events that are pending.
 
Appendix B: Regulatory Summary Table
Company
Pending Cases / Events
Retail Regulation
   
Entergy Arkansas
 
Authorized ROE:  10.2%
 
Last Filed
Rate Base:
$4.0 billion
 
Filed 6/10  based on 6/30/09 test year, with known and measurable changes through 6/30/10
 
Rate Case Recent Activity:  In June 2010, the APSC approved a settlement and subsequent compliance tariffs effective for bills rendered for the first billing cycle of July 2010.  Key elements of the settlement include a $63.7 million rate increase (after removing $10.1 million for the securitization of ice storm costs) and a 10.2% allowed return on equity.  No Formula Rate Plan (FRP) or transmission rider was adopted.
Background:  On September 4, 2009, EAI filed a rate case requesting a $223.2 million increase reflecting an 11.5% ROE based on a June 30, 2009 test year with known and measurable changes through June 30, 2010.  The filing also included a proposed FRP, with key provisions calling for a +/- 25 basis point bandwidth, earnings outside the bandwidth resetting to the 11.5% midpoint ROE and rates changing on a prospective basis depending on whether EAI is over or under-earning.  The proposed FRP also included a recovery mechanism that provides timely recovery for APSC-approved expense for additional capacity purchase or construction / acquisition of new transmission or generating facilities.  Finally, the proposed FRP included an energy efficiency-related mechanism.  By April 2010 all testimony had been filed in the proceeding.  APSC Staff proposed a $49 million rate increase reflecting a 10.1% ROE. In the event a FRP was adopted, Staff recommended a further ROE reduction to 9.6%. EAI reduced its request to $168 million, reflecting a 10.65% ROE and the reduction to remove the revenue requirement associated with storm recovery from its case as discussed below.  Also, on February 11, 2010, the APSC requested comments from parties in the rate case on various issues raised related to transmission.  On March 3, 2010, EAI filed supplemental testimony regarding transmission costs and investments and potential recovery through a transmission rider or the proposed formula rate plan. EAI implemented its last base rate change, a $5.1 million rate reduction, on August 29, 2007.
Storm Cost Recovery Recent Activity:  In June 2010, the APSC approved EAI’s financing order.  The financing order authorizes the issuance of storm recovery bonds in an aggregate amount of $126.3 million, consisting of $121.7 million in storm recovery costs (including $11.5 million of carrying costs assuming a September 23, 2010 bond issuance) and upfront financing costs of $4.6 million.  The APSC set a cap of 4.4% on the coupon rate of the securitization bonds to ensure customer savings.
Background:  EAI incurred approximately $123 million in estimated restoration costs resulting from the severe ice storm that struck in January 2009.  Considering the magnitude of the statewide storm damages, the Arkansas legislature passed legislation authorizing storm reserve accounting in March 2009, followed by the enactment of storm securitization legislation in April.  Both pieces of legislation are effective for storms occurring on or after January 1, 2009.  The Administrative Law Judge (ALJ) approved the establishment of EAI’s storm cost reserve account on April 16, 2010 using the annual amount of $14.449 million previously established.  As part of EAI’s September 4, 2009 rate case filing, EAI included the 2009 ice storm restoration costs in cost-of-service, indicating the ice storm restoration costs would be removed from the pending rate case if the APSC approved EAI’s request to securitize the ice storm costs.  Since EAI’s analysis demonstrated that retail customers will benefit from lower costs using securitization versus conventional utility financing, EAI removed ice storm recovery from the pending rate case filing in its rebuttal testimony filed on March 24, 2010.
 
Show Cause Order Regarding System Agreement / Future Operation and Control of EAI’s Transmission Assets Recent Activity:  EAI continued to file testimony and participate in the hearing in the APSC Show Cause proceeding.  EAI also conducted the first two technical conferences for the APSC, its Staff, and other parties in May and July.  On May 11, 2010, the Southwest Power Pool (SPP) filed a detailed EAI Stand-Alone Cost Benefit Study (CBA) project schedule, contingent on certain milestones being reached in the SPP-Entergy CBA.  A draft report is due September 17, 2010, with the final report due October 2, 2010.
Background:  On February 11, 2010, the APSC issued a Show Cause order opening an inquiry to conduct an investigation, with the intent to render its decision by the end of 2010, regarding the prudence of EAI’s entering a successor pooling agreement with the other Entergy Operating Companies, as opposed to becoming a stand-alone entity upon exit from the System Agreement in December 2013, and whether EAI, as a stand-alone utility should join the SPP Regional Transmission Organization (RTO).  As a parallel matter, the APSC will also monitor whether Entergy will make any meaningful enhancements to its Independent Coordinator of Transmission (ICT) arrangement in 2010 with filings at FERC.  EAI noted in its testimony that it is not reasonable to complete a comprehensive evaluation of strategic options by the end of 2010 and that forcing a decision would place parties in the untenable position of making critical decisions based on insufficient information. EAI outlined three options for post-System Agreement operation of its electrical system: (1) EAI Self Provide – as a stand-alone company for resource planning; (2) EAI plus new Coordination Agreements with 3rd Parties – EAI self provides or contracts some functions, but also enters into one or more coordinating and / or pooling agreements with third parties, such as SPP RTO; and (3) Successor Arrangements – EAI plans for its own generation resources but enters into a new generation pooling agreement with other Entergy operating companies under successor arrangements that benefits all, but avoids litigation previously experienced.  EAI’s plan is expected to lead to a decision regarding critical path issues in late 2011, however, EAI anticipates several transition plan elements will move forward in 2010 and require ongoing dialogue.  In an attempt to reach understanding of complex issues, EAI proposes to hold a series of five technical conferences in the coming months targeting specific subject matter.



Appendix B: Regulatory Summary Table (continued)
Company
Pending Cases / Events
Retail Regulation
   
Entergy Gulf States Louisiana
 
Authorized ROE Range:  9.9% - 11.4%
(electric)
 
10.0% - 11.0%
(gas)
 
 
Last Filed
Rate Base:
$2.3 billion
(electric)
 
Filed 5/10 based on 12/31/09 test year
 
 
$0.05 billion
(gas)
 
Filed 4/10 based on 9/30/09 test year
 
Formula Rate Plan Recent Activity:  At its May 19, 2010 Business and Executive (B&E) session, the LPSC accepted the joint LPSC Staff / EGSL report reflecting resolution of the 2008 test year FRP filing.  The report calls for a prospective reduction in EGSL’s rates of $847 thousand beginning with the June billing cycle and a refund of $494 thousand plus judicial interest through the fuel adjustment clause.  On May 28, 2010, EGSL made its 2009 test year FRP filing.  The filing reflected a 10.25% earned ROE which is within the bandwidth resulting in no cost of service adjustment.  The filing also reflected two increases outside of the FRP sharing mechanism: (1) $9.7 million to reflect an extraordinary cost change associated with a required increase in decommissioning accruals related to EGSL’s River Bend Station consistent with an earlier December 2009 filing, and (2) $20.8 million for capacity costs.  Further, in response to a depreciation rate complaint filed at FERC by the LPSC, EGSL presented two ancillary FRP filing proposals based on a new depreciation study that increased depreciation rates and related FRP revenues by either $45.3 million (assuming a 40 year River Bend life) or $24.4 million (60 year life).  EGSL also noted that LPSC Staff, EGSL and intervenors continue working to design a transmission rider for EGSL.  At its July B&E session, the LPSC resolved the decommissioning matter, granting a $7.8 million increase effective September 2010.  Other matters remain subject to LPSC approval.
Background:  At its October 2009 B&E session, the LPSC approved an uncontested settlement resolving the 2007 test year FRP filing and extending the FRP regulatory process for an additional three years.  The new FRP was adopted for the 2008-2010 test years and retains the 10.65% ROE midpoint with a +/- 75 basis point bandwidth and a recovery mechanism for Commission-approved capacity additions.  Earnings outside the bandwidth are allocated prospectively, 60% to customers and 40% to the company.  As part of the settlement, EGSL implemented a one-time rate reset to achieve its 10.65% midpoint ROE for the 2008 test year filing, which was filed October 21, 2009.  This filing reflected an 8.64% earned ROE and total rate increase of $44.3 million, including a $36.9 million cost of service adjustment, plus $7.4 million net for increased capacity costs and a base rate reclassification.  New rates took effect coincident with the November billing cycle and were subject to review and final approval by the LPSC.  All parties also committed to work together to attempt to develop a transmission rider for EGSL.  Finally, the settlement included a $3.7 million refund commencing with the November billing cycle for the 2007 test year FRP filing.  In January, EGSL implemented a further $23.9 million rate increase pursuant to the special rate implementation filing made in December, primarily for incremental capacity costs approved by the LPSC.  In addition, in December, EGSL filed a joint application seeking LPSC approval for a $9.7 million revenue requirement to provide supplemental funding for the decommissioning trust maintained for the LPSC-regulated 70% share of River Bend, in response to the NRC notification of a projected shortfall of decommissioning funding assurance.  EGSL had no funding in retail rates for decommissioning.
Storm Cost Recovery  Recent Activity:  On June 17, 2010, the Louisiana State Bond Commission granted the Louisiana Local Government Environmental Facilities and Community Development Authority (LCDA) authorization to issue up to $721 million in bonds on behalf of the Louisiana Utilities Restoration Corporation (LURC) in order to finance non-shareholder capital contributions to EGSL / ELL related to their system restoration costs associated with hurricanes Gustav and Ike and to establish future storm reserves.  In July 2010, $244.1 million of system restoration bonds were issued in three tranches, with an average life of 6.6 years and a duration weighted average coupon of 3.284%.  EGSL used proceeds (net of external issuance costs) to fund $90 million of storm reserves and the $150.3 million balance to purchase preferred securities from Entergy Holdings Company LLC to become a permanent part of EGSL’s capital structure.
Background:  In lieu of seeking interim recovery, on October 9, 2008, EGSL accessed $85 million of storm reserves funded by securitized debt proceeds.  On October 15, 2008, the LPSC approved EGSL’s request to defer and accrue carrying cost on unrecovered storm expenditures during the period the company seeks regulatory recovery.  The approval was without prejudice to the ultimate resolution of the total amount of prudently incurred storm cost or final carrying cost rate.  New securitization legislation was not needed, as existing legislation extends to Gustav and Ike.  EGSL initiated its storm recovery proceeding for hurricanes Gustav and Ike on May 11, 2009.  EGSL also sought to replenish its storm reserve in the amount of $90 million.  On September 29, 2009, EGSL filed its first and second supplemental and amending joint applications in the storm proceeding requesting that the LPSC approve and authorize alternative (Act 55) financing.  EGSL expects significant potential financing savings from pursuing Act 55 alternative financing and plans to guarantee customer savings, consistent with results achieved from the same approach used for hurricanes Katrina and Rita recovery.  On December 30, 2009, EGSL entered into a black box stipulation agreement with the LPSC Staff that provided for total recoverable costs of nearly $234 million (greater than 98 percent of EGSL’s request) and permitted replenishing EGSL’s storm reserve in the amount of $90 million when Act 55 financing is accomplished.  At its April 21, 2010 B&E session, the LPSC approved uncontested stipulated settlements resolving all issues.
   
Entergy Louisiana
 
Authorized ROE Range:  9.45% - 11.05%
 
Last Filed
Rate Base:
$3.0 billion
 
Filed 5/10 based on 12/31/09 test year
Formula Rate Plan Recent Activity: On May 14, 2010, ELL made its 2009 test year FRP filing.  The filing reflected a 10.82% earned ROE which is within the bandwidth resulting in no cost of service adjustment.  The filing also reflected two adjustments outside of the FRP sharing mechanism: (1) a decrease of $7.4 million to reflect reduced capacity costs, and (2) an increase to reflect an extraordinary cost change associated with a required increase in decommissioning accruals related to ELL’s Waterford 3 Steam Electric Station consistent with an earlier December 2009 filing, which was resolved at the July B&E session, with the LPSC granting a $3.482 million increase in retail rates effective September 2010.  Further, in response to a depreciation rate complaint filed at FERC by the LPSC, ELL presented two ancillary FRP filing proposals based on a new depreciation study that increased depreciation rates and related FRP revenues by either $96.4 million (assuming a 40 year Waterford 3 life) or $40.5 million (60 year life).  ELL also noted that LPSC Staff, ELL and intervenors continue working to design a transmission rider for ELL.
Background:  At its October 2009 B&E session, the LPSC approved an uncontested settlement resolving the 2006 and 2007 test year FRP filings and extending the FRP regulatory process for an additional three years.  The new FRP was adopted for the 2008-2010 test years and retains the 10.25% ROE midpoint with a +/- 80 basis point bandwidth and a recovery mechanism for Commission-approved capacity additions.  Earnings outside the bandwidth are allocated prospectively, 60% to customers and 40% to the company.  As part of the settlement, ELL implemented the one-time rate reset to achieve its 10.25% midpoint ROE for the 2008 test year filing, which was filed October 21, 2009.
 


Appendix B: Regulatory Summary Table (continued)
Company
Pending Cases/Events
Retail Regulation
   
Entergy Louisiana
(continued)
This filing reflected a 9.35% earned ROE and total rate increase of $2.5 million, including a $16.3 million cost of service adjustment, less a $13.8 million net reduction for decreased capacity costs and a base rate reclassification. New rates took effect coincident with the November billing cycle and were subject to review and final approval by the LPSC.  All parties also committed to work together to attempt to develop a transmission rider for ELL.  Finally, the settlement included a $12.9 million refund commencing with the November billing cycle for the 2006 and 2007 test year FRP filings.  In addition, in December, ELL filed a joint application seeking LPSC approval for a $10.1 million retail revenue requirement to provide supplemental funding for the decommissioning trust maintained for the LPSC-jurisdictional portion of Waterford 3, in response to the NRC notification of a projected shortfall of decommissioning funding assurance.  ELL had $2.3 million in retail rates for decommissioning.  At its April 21, 2010 B&E session, the LPSC accepted the joint LPSC Staff / ELL report reflecting resolution of the FRP for the 2008 test year.  The report called for a prospective reduction in ELL’s rates of $144.4 thousand beginning with the May billing cycle and to refund $72.2 thousand plus judicial interest through the fuel adjustment clause. Further, ELL will move the recovery of approximately $12.5 million of capacity costs associated with EAI’s Wholesale Baseload Capacity Resource from fuel adjustment clause recovery to base rate recovery.
 
Storm Cost Recovery Recent Activity:  On June 17, 2010, the Louisiana State Bond Commission granted the LCDA authorization to issue up to $721 million in bonds on behalf of the LURC in order to finance non-shareholder capital contributions to ELL / EGSL related to their system restoration costs associated with hurricanes Gustav and Ike and to establish future storm reserves. In July 2010, $468.9 million of system restoration bonds were issued in four tranches, with an average life of 6.6 years and a duration weighted average coupon of 3.276%.  ELL used proceeds (net of external issuance costs) to fund $200 million of storm reserves and the $264.2 million balance to purchase preferred securities from Entergy Holdings Company LLC to become a permanent part of ELL’s capital structure.
Background:  In lieu of seeking interim recovery, on October 9, 2008, ELL accessed $134 million of storm reserves funded by securitized debt proceeds.  On October 15, 2008, the LPSC approved ELL’s request to defer and accrue carrying cost on unrecovered storm expenditures during the period the company seeks regulatory recovery.  The approval was without prejudice to the ultimate resolution of the total amount of prudently incurred storm cost or final carrying cost rate.  New securitization legislation was not needed, as existing legislation extends to Gustav and Ike.  ELL initiated its storm recovery proceeding for hurricanes Gustav and Ike on May 11, 2009.  ELL also sought to replenish its storm reserve in the amount of $200 million. On September 29, 2009, ELL filed its first and second supplemental and amending joint applications in the storm proceeding requesting that the LPSC approve and authorize alternative (Act 55) financing.  ELL expects significant potential financing savings from pursuing Act 55 alternative financing and plans to guarantee customer savings, consistent with results achieved from the same approach used for hurricanes Katrina and Rita recovery.  On December 30, 2009, ELL entered into a black box stipulation agreement with the LPSC Staff that provided for total recoverable costs of approximately $394 million (greater than 98 percent of ELL’s request) and permitted replenishing ELL’s storm reserve in the amount of $200 million when Act 55 financing is accomplished.  At its April 21, 2010 B&E session, the LPSC approved uncontested stipulated settlements resolving all issues.
Acadia Unit 2 Acquisition Recent Activity: On June 1, 2010, deliveries commenced under a power purchase agreement (PPA) between ELL and Acadia Power Partners, LLC (APP), in lieu of the planned interim tolling agreement, and ELL / EGSL filed a supplemental application with the LPSC for certification of the PPA.  ELL / EGSL requested that this application be reviewed under the streamlined procedures, and on July 6, 2010, the ALJ in the docket issued notice that neither opposition nor objections were filed against the application and thus the matter was forwarded to the LPSC for consideration. The LPSC certified this PPA at its July B&E session.  On June 4, 2010, the FERC concluded that the proposed transaction is consistent with the public interest and issued an order authorizing ELL to acquire Acadia Unit 2 from APP.  At the July 30, 2010 status conference, the ALJ rescheduled the hearings in the Acadia proceeding to December 9-10, 2010, and, if necessary, December 13, 2010.
Background:  In October 2009, ELL signed a purchase and sale agreement to acquire the 580 MW Unit 2 of the Acadia Energy Center for $300 million ($517/kW). ELL proposes to acquire 100 percent of Acadia Unit 2 and a 50 percent ownership interest in the facility’s common assets.  Cleco Power will serve as operator for the entire facility.  ELL has committed to sell one third of the output to EGSL in accordance with terms and conditions detailed under the existing System Agreement.  The purchase is contingent upon, among other things, obtaining necessary approvals, including full cost recovery, from various federal and state regulatory and permitting agencies and the filing of notification under Hart-Scott-Rodino antitrust law.  Closing is expected to occur in early 2011.  ELL also entered into an interim tolling agreement (ITA) to purchase the capacity and energy output of Acadia Unit 2 expected to commence on May 1, 2010 and to expire at the closing of the acquisition transaction. ELL initiated its filing at the LPSC on November 13, 2009. Consideration of the application at the January 2011 LPSC B&E Session would accommodate a closing by the March 31, 2011 deadline regarding certain price increases. On April 9, 2010, the LPSC approved ELL and EGSL’s uncontested request concerning the limited-term ITA.  The Hart-Scott-Rodino Antitrust Improvements Act filing was made in March 2010.
 
Little Gypsy Repowering Recent Activity:  On June 29, 2010, LPSC Staff and Intervenors filed testimony.  Among others, LPSC Staff (1) agreed it was prudent to move the project from long-term suspension to cancellation, and the timing of the decision to suspend on a longer-term basis was not imprudent; (2) indicated that, except for $819 thousand, costs incurred should be deemed prudent; (3) recommended recovery from customers over ten years and that the LPSC may want to consider 15 years; (4) allowed recovery of carrying costs and earning a return on project costs, but at a reduced rate approximating the cost of debt while acknowledging the LPSC may consider ordering no return; and (5) indicated ELL should be directed to securitize project costs, if legally feasible and in the public interest.  The modified procedural schedule calls for hearings to begin in November 2010.  This past session, HB 1207, creating the Louisiana Electric Investment Recovery Securitization Act, was unanimously passed in the Louisiana legislature and signed by Governor Jindal.



Appendix B: Regulatory Summary Table (continued)
Company
Pending Cases/Events
Retail Regulation
   
Entergy
Louisiana
(continued)
Background:  On November 8, 2007, the LPSC voted unanimously to approve ELL’s request to repower the 538 MW Little Gypsy unit to utilize CFB technology relying on a dual-fuel approach (petroleum coke and coal), an action that could reduce Louisiana customers’ dependence on natural gas.  The approval was subject to a number of conditions, including the development and approval of a construction monitoring plan.  The order also included a recovery provision for prudently incurred costs in the event circumstances changed materially.  The project later experienced a delay resulting from the need to conduct additional environmental analysis (Maximum Achievable Control Technology application) as a result of a federal court decision in February 2008 unrelated to the project.  The additional analysis estimated construction could commence by mid-year 2009 leading to a targeted in service date by mid-year 2013 and resulting in a project cost estimate increase to $1.76 billion.  In February 2009, the Louisiana Department of Environmental Quality issued the new air permit.  On March 11, 2009, the LPSC issued an order directing ELL to temporarily suspend the Little Gypsy Repowering Project and file a report with the LPSC on the economic viability of the project and develop a recommendation regarding whether to delay the project for an extended time.  This action was based upon a number of factors including the recent decline in natural gas prices, as well as environmental concerns, the unknown costs of carbon legislation and changes in the capital / financial markets.  On April 1, 2009, ELL recommended to the LPSC that it continue the temporary project suspension and make a filing with the LPSC seeking a longer-term suspension (three years or more) of the project.  The filing indicated approximately $160 million of spending through February 28, 2009 and estimated approximately $300 million of total costs if the project is cancelled.  ELL had obtained all major environmental permits required to begin construction.  A longer-term delay places these permits at risk and may adversely affect the project’s economics and technological feasibility in the event the project is re-initiated.  In May 2009, the LPSC unanimously accepted ELL’s recommendation and issued an order finding that ELL’s decision to place the Little Gypsy project in longer-term suspension of 3 years or more was in the public interest and prudent, without prejudice to issues of prudence of timing of decisions, project management, whether ELL may recover project costs from retail customers and the manner of that recovery and whether the project should be cancelled or abandoned as opposed to merely suspended.  The quarterly monitoring plan was suspended indefinitely, with ELL instead working cooperatively with the LPSC Staff keeping them informed of activities associated with suspending the project and terminating current contracts related to the project.  ELL also dismissed its proceeding to recover cash earnings on Construction Work in Progress (CWIP) for the Little Gypsy project.  On October 27, 2009, ELL filed an application and testimony seeking LPSC authorization to cancel the Little Gypsy Unit 3 repowering project allowing ELL to cancel permits, eliminating the requirement to monitor the project for potential restart.  This approach requires starting over should the decision be made to engage in a similar future project.  In addition, ELL sought to recover cost incurred on a levelized five-year recovery basis to be trued up.  In the event ELL’s costs exceed the authorized amount, ELL proposed that it be required to justify any additional recovery.  Pursuant to the procedural schedule, in January, ELL filed an updated cost estimate of nearly $215 million, including nearly $193 million of costs incurred through December 31, 2009 and $22 million of net cancellation / project termination costs including AFUDC through March 2011.
   
Entergy Mississippi
 
Authorized
ROE Range:  10.79% -
13.05%
(per FRP filing)
 
Last Filed
Rate Base:
$1.5 billion
 
Filed 3/10     based on  12/31/09 test yr
Formula Rate Plan Recent Activity: On June 25, 2010, the MPSC issued an order approving the terms of a joint stipulation agreement between the Mississippi Public Utilities Staff and EMI for the 2009 test year FRP filing. The agreement calls for no increase but permits EMI to create a regulatory asset for Mississippi Attorney General litigation costs (currently $3.8 million). It also directs EMI to file a depreciation study within the next 12 months.
Background: EMI had been operating under a FRP last approved in December 2002.  The FRP allowed the company’s earned ROE to increase or decrease within a bandwidth with no change in rates.  Rate changes, if any, were effective on a prospective basis.  On March 4, 2010, the MPSC approved modifications to EMI’s FRP that (1) aligned EMI’s FRP more closely with the FRPs of the other regulated gas and electric utilities in Mississippi, (2) reset the ROE and bandwidth based upon performance ratings, (3) rescored the performance adjustment factors, (4) eliminated the $14.5 million revenue adjustment limit and changed the 2% of revenues limit to a 4% limit, with any adjustment over 2% requiring a hearing, and (5) directed EMI to phase-out the summer / winter rate differential in residential rates over two years.  On March 15, 2010, EMI filed its first evaluation report under its new FRP for the 2009 test year.  The filing reflected a 10.66% earned ROE and total rate increase of $11.8 million, including an $8.1 million increase to amortize general plant. The calculated 11.92% FRP midpoint ROE included the benefit of a 0.76% performance incentive. The FRP called for new rates to be implemented in the June billing cycle, subject to review and final approval by the MPSC.
   
Entergy        New Orleans
 
Authorized    ROE Range:
10.7% - 11.5%
(electric)
 
10.25% - 11.25% (gas)
 
Last Filed
Rate Base:
$0.3 billion
(electric)
 
$0.08 billion
(gas)
 
Filed 5/10
based on 12/31/09 test yr
Formula Rate Plan Recent Activity:  On May 27, 2010, ENOI filed its FRP for the 2009 test year.  The electric filing reflected a 14.46% earned ROE and a rate decrease of $12.9 million.  The gas filing reflected a 7.10% earned ROE and a rate increase of $2.4 million.
Background:  A new three year FRP beginning with the 2009 test year was adopted in ENOI’s rate case settled in April 2009.  Key provisions include an 11.1% electric ROE and a +/- 40 basis point bandwidth and a 10.75% gas ROE with a
+/- 50 basis point bandwidth.  Earnings outside the bandwidth reset to the midpoint ROE, with rates changing on a prospective basis depending on whether ENOI is over or under-earning.  The FRP also includes a recovery mechanism for Council-approved capacity additions, plus provisions for extraordinary cost changes and force majeure.  The FRP may be extended by the mutual agreement of ENOI and the City Council of New Orleans (CCNO).  The settlement also implemented energy conservation and demand programs.  Effective June 1, 2009, pursuant to its April rate case settlement, ENOI implemented a total electric bill reduction of $35.3 million, including conversion of the $10.6 million voluntary recovery credit to a permanent reduction and complete realignment of Grand Gulf recovery from fuel to base rates, and a $4.95 million gas rate increase. On September 17, 2009, the CCNO approved the Energy Smart Resolution.  Energy Smart is the energy efficiency program that was filed pursuant to ENOI’s April 2009 rate case settlement.

Appendix B: Regulatory Summary Table (continued)
Company/ Proceeding
 
Pending Cases/Events
  Retail Regulation
   
Entergy Texas
 
Authorized ROE:  10.0%
 
Last Filed
Rate Base:
$1.6 billion
 
Filed 12/09 based on 6/30/09 adjusted test year
 
Rate Case Recent Activity:  Parties in the ETI rate case are working to complete a stipulation agreement and to file it with the Administrative Law Judges resolving all but one issue in the case.  The contested issue, the competitive generation service tariff, was the subject of a limited hearing conducted in July.  Entergy Texas hopes to get the stipulation finalized and filed in the near future.
Background:  ETI implemented a $46.7 million base rate increase pursuant to its black box rate case settlement effective January 28, 2009, for usage beginning December 19, 2008.  ETI is in need of baseload resources, and in 2009 EAI elected to offer its Wholesale Baseload (WBL) capacity to the Entergy system as a three-year cost based deal beginning January 1, 2010.  ETI projected that the purchase could save customers in the range of $9.5 to $16.0 million over three years.  Given expected savings, on September 18, 2009, ETI had requested a cost recovery mechanism to recover the annual capacity costs of approximately $26 million through a Purchased Power Recovery Factor (PCRF) until such time as the costs were reflected in rates after a general rate case or the transaction expired, whichever occurred first.  On December 30, 2009, ETI filed a rate case requesting a $198.7 million increase reflecting an 11.5% ROE based on an adjusted June 30, 2009 test year.  The filing included a proposed cost of service adjustment (COSA) rider with a three year term beginning with the 2010 calendar test year.  Key provisions included a +/- 15 basis point bandwidth, with earnings outside the bandwidth reset to the bottom or top of the band and rates changing prospectively depending upon whether ETI is over or under-earning.  The annual change in revenue requirement was limited to a percentage change in Consumer Price Index for urban areas, and the FRP included a provision for extraordinary events greater than $10 million per year which would be considered separately.  The filing also proposed a purchased power recovery rider, a competitive generation service tariff and established test year baseline values to be used in the transmission cost recovery factor rider authorized for use by ETI in the 2009 legislative session.  Finally, the rate case included a $2.8 million revenue requirement to provide supplemental funding for the decommissioning trust maintained for the 70% share of River Bend for which Texas retail customers have responsibility, in response to the NRC notification of a projected shortfall of decommissioning funding assurance.  On February 18, 2010, the ALJ issued an order approving a unanimous settlement on interim rates and the procedural schedule reached on February 11, 2010 with the parties in the rate case.  The settlement called for an interim rate increase of $17.5 million to begin on May 1, 2010 and the withdrawal of the PCRF docket pertaining to the Arkansas WBL capacity.  The procedural schedule called for hearings in July 2010, with a final order to be issued November 1, 2010 and permanent rates to be effective relating back to service rendered on / after September 13, 2010.
  Wholesale Regulation
   
System Energy Resources, Inc.
 
Recent Activity:  None.
Background:  10.94% ROE approved by July 2001 FERC order.
Last Filed Rate Base: $1.2 billion filed 12/31/09 in monthly cost of service filing
   
System Agreement
 
 
Recent Activity: The Operating Companies continue to meet with Staffs and / or advisors of retail regulatory commissions to discuss a proposed framework for Successor Arrangements to the current System Agreement, which is being pursued in parallel with evaluation by the Entergy Regional State Committee (E-RSC) of the SPP RTO and modified ICT alternatives.
In May 2010, the Operating Companies submitted the 2010 bandwidth filing based on 2009 calendar year production costs. The filing reflected a substantially reduced payment from EAI of $27.3 million to be paid collectively to ELL and EMI, down roughly $363 million due primarily to lower natural gas prices. FERC issued an order on July 23, 2010 setting the 2010 bandwidth filing for hearing and settlement judge procedures.
On May 25, 2010, the Utility Operating Companies filed testimony refuting the LPSC’s claims in its April 16, 2010 filing at the FERC alleging that Entergy violated the System Agreement by permitting EAI to make non-requirements sales to non-affiliated third parties rather than making such energy available to the other Utility Operating Companies’ customers. The LPSC filing also stated these non-requirements sales caused harm to the Operating Companies’ customers of $144.4 million over the period 2000-2009, and these customers should be compensated for this harm by Entergy’s shareholders. LPSC rebuttal testimony is scheduled to be filed on August 6, 2010, with the hearing scheduled to begin August 24, 2010.
Background:  The System Agreement case addresses the allocation of production costs among the Utility Operating Companies.  In 2005, the FERC issued orders that require each Operating Company’s production costs to be within
+ / - 11% of System average production costs and set 2007 as the first possible year of payments among Entergy’s Operating Companies, based on calendar year 2006 actual production costs.  Upon appeal, the DC Circuit remanded to the FERC for reconsideration of the FERC's conclusion it did not have the authority to order refunds and the decision to delay the implementation of the bandwidth remedy.  The remand is pending at FERC.
Also, a decision is pending at FERC in the interruptible / curtailable case on the appropriateness of refunds resulting from changes in the treatment of interruptible load in the allocation of costs among the Operating Companies under the System Agreement.  Resolution of this proceeding is expected to have implications regarding the question of whether FERC provided sufficient rationale for not ordering refunds in the System Agreement case.
Bandwidth filings for production costs required payments from EAI to various other Operating Companies of approximately $252 million, $252 million and $390 million for the 2007, 2008 and 2009 bandwidth filings respectively.  FERC set each of these bandwidth filings for hearing following protests from retail regulatory commissions and / or third parties.  A final order in the 2007 bandwidth proceeding has been issued by the FERC, and requests for rehearing and clarification have been filed. Bandwidth proceedings based on 2008 and 2009 remain outstanding.



Appendix B: Regulatory Summary Table (continued)
Company/ Proceeding
 
Pending Cases/Events
  Wholesale Regulation
   
System Agreement
(continued)
 
The System Agreement has been and continues to be the subject of ongoing litigation.  As a result, EAI and EMI submitted their eight year notices to withdraw from the System Agreement effective December 2013 and November 2015, respectively.  On November 19, 2009, FERC accepted notices of cancellation and determined EAI and EMI are permitted to withdraw from the System Agreement following the 96 month notice period without payment of a fee or being required to otherwise compensate the remaining Entergy Operating Companies as a result of withdrawal.  FERC stated it expected Entergy and all interested parties to move forward and develop details of all needed successor arrangements and encouraged Entergy to file its Section 205 filing for post-2013 arrangements as soon as possible.  The LPSC and CCNO have requested rehearing of the FERC’s decision. EAI continues to evaluate alternatives, including stand-alone operation of its generation facilities, EAI participating as a member of the SPP RTO or Midwest ISO and potential Successor Arrangements. In early April 2010, Entergy Corporation and the Entergy Operating Companies determined in connection with their decision-making process that it is appropriate to agree and commit that no Entergy Operating Company will enter voluntarily into successor arrangements with the other Entergy Operating Companies if its retail regulator finds successor arrangements are not in the public interest.
   
Independent Coordinator of Transmission
 
Authorized
ROE:  11.0% (t)
 
Last Filed
Rate Base:
$2.2 billion (u)
 
Filed 5/10
based on 12/31/09 test year
 
 
Recent Activity:  In June 2010, ESPY Energy Solutions, the consulting firm engaged by the E-RSC to assist them in their evaluations, delivered a report on findings and recommendations for potential modifications to the ICT. The E-RSC is expected to provide recommendations to the Entergy Operating Companies on short-term potential modifications to the ICT, in advance of the Entergy Operating Companies’ required September 2010 FERC filing for interim extension of ICT arrangements (likely with modifications).  On July 19, 2010, ELL and EGSL submitted an initial report to the LPSC identifying potential modifications to the ICT that could be implemented after the initial term expires and before longer-term decisions regarding SPP RTO vs. ICT are made. The Operating Companies indicated their support to provide the E-RSC with authority, upon unanimous approval of all members, to (1) propose modifications to cost allocation methodology and
(2) add transmission projects to the Construction Plan.
Charles River Associates (CRA), the consultants performing the cost-benefit study comparing the current ICT arrangement to joining the SPP RTO, held a meeting with stakeholders, FERC and E-RSC Working Group members to review very preliminary draft results on July 20, 2010. In addition, the scope of the study was expanded during July to consider the Operating Companies joining the Midwest ISO RTO as an alternative. The target date for completion of the FERC-funded cost-benefit analysis on the SPP RTO is September 30, 2010; the completion of several addendum studies will follow.
Background:  In November 2006, the Utility Operating Companies installed SPP as their ICT with an initial term of four years unless Entergy files and the FERC approves an extension beyond that four year period.  The Operating Companies did not transfer control of the transmission system but rather vested the ICT with responsibility, among others, for granting or denying transmission service, administering the OASIS node, developing a base plan for the transmission system that is used to determine whether costs of transmission upgrades should be rolled into transmission rates or directly assigned to customers requesting or causing the upgrade to be built, serving as reliability coordinator the transmission system and overseeing the Weekly Procurement Process (WPP).
In its November 17, 2009 FERC filing, in anticipation of the expiration of the initial term of the ICT, a process was proposed for the evaluation of modifications to, or the replacement of, the current ICT and WPP arrangements. The process will facilitate review by the FERC, Entergy’s retail regulators, and interested stakeholders of two primary alternatives; 1) the adoption of certain modifications to the current ICT arrangements, or
2) a transition to membership in the SPP RTO.  A critical factor in the Operating Companies’ proposal will be the opinion and recommendation of the E-RSC formed in the Fall of 2009, including one representative from each of the Entergy Operating Company retail regulators, to consider several of the issues related to the Entergy transmission system.  The Utility Operating Companies expect that the E-RSC will reflect in its evaluation process the cost-benefit analysis underway now by CRA that is being jointly sponsored by the E-RSC and FERC that will compare the current ICT arrangement to joining the SPP RTO and Midwest ISO.
In addition, the E-RSC is currently considering potential modifications to the ICT arrangement, including, among others, providing the E-RSC with authority (upon a unanimous vote) to (1) require the Entergy Operating Companies to file with the FERC proposed modifications to the cost allocation policy for transmission upgrades and (2) add projects to the Operating Companies’ transmission construction plan.  It is anticipated certain potential modifications to the ICT will be implemented in November 2010, with other potential modifications being considered if the ICT is ultimately determined to be the appropriate longer term option.  If the SPP RTO is ultimately deemed the preferred alternative, SPP has indicated the implementation process may take at least 12-18 months after a decision is made.
While alternatives are being explored, Entergy has already taken the voluntary step to more closely align its transmission planning criteria with the anticipated modifications to the NERC planning standards.  Entergy believes that the current ICT arrangements have produced benefits, and, if modified as a result of this process, can continue to benefit customers and competition.  The SPP RTO and Midwest ISO RTO alternatives also have the potential to produce benefits.  The progress of cost-benefit analysis will be closely monitored, including its treatment of the costs associated with any socialization of transmission upgrades constructed to integrate wind development.
(t)  Applies to sales made under Entergy’s FERC-jurisdictional Open Access Transmission Tariff (OATT).
(u) Reflects transmission rate base in Entergy’s FERC OATT filing, for which such amounts are also reflected in the rate base figures for each of the Operating Companies shown above.

 
C.  
Financial Performance Measures and Historical Performance Measures

Appendix C-1 provides comparative financial performance measures for the current quarter.  Appendix C-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 net income, including special items.  Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items.  A reconciliation of operational measures to as-reported measures is provided in Appendix F.

Appendix C-1:  GAAP and Non-GAAP Financial Performance Measures
Second Quarter 2010 vs. 2009
(see Appendix E for definitions of certain measures)
   
For 12 months ending June 30
2010
2009
  
Change
GAAP Measures
        
Return on average invested capital – as-reported
8.1%
7.5%
  
0.6%
Return on average common equity – as-reported
14.8%
13.7%
  
1.1%
Net margin – as-reported
11.7%
9.0%
  
2.7%
Cash flow interest coverage
6.6
6.7
  
(0.1)
Book value per share
$46.78
$44.70
  
$2.08
End of period shares outstanding (millions)
187.5
196.1
  
(8.6)
         
Non-GAAP Measures
        
Return on average invested capital – operational
8.5%
7.8%
  
0.7%
Return on average common equity – operational
15.8%
14.6%
  
1.2%
Net margin – operational
12.5%
9.6%
  
2.9%
         
As of June 30 ($ in millions)
2010
2009
  
Change
GAAP Measures
        
Cash and cash equivalents
1,336
1,281
  
55
Revolver capacity
1,311
1,585
  
(274)
Total debt
11,853
11,510
  
343
Securitization debt
829
301
  
528
Debt to capital ratio
56.6%
55.9%
  
0.7%
Off-balance sheet liabilities:
        
Debt of joint ventures – Entergy’s share
111
120
  
(9)
Leases – Entergy’s share
530
449
  
81
Total off-balance sheet liabilities
641
569
  
72
         
Non-GAAP Measures
        
Debt to capital ratio, excluding securitization debt
54.8%
55.3%
  
(0.5)%
Total gross liquidity
2,647
2,866
  
(219)
Net debt to net capital ratio, excluding securitization debt
51.6%
52.2%
  
(0.6)%
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
53.2%
53.6%
  
(0.4)%
         



Appendix C-2: Historical Performance Measures
(see Appendix E for definitions of measures)
     
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
09YTD
10YTD
Financial
                    
   
EPS – as-reported ($)
2.41
0.89
1.20
1.14
2.32
1.64
1.12
1.65
2.35
2.77
   
Less – special items ($)
(0.09)
(0.10)
(0.09)
(0.09)
(0.08)
(0.11)
(0.21)
(0.06)
(0.17)
(0.26)
   
EPS – operational ($)
2.50
0.99
1.29
1.23
2.40
1.75
1.33
1.71
2.52
3.03
 
Trailing Twelve Months
                    
   
ROIC – as-reported (%)
8.1
8.1
7.6
7.5
7.1
7.7
7.6
8.1
7.5
8.1
   
ROIC – operational (%)
8.4
8.4
8.0
7.8
7.5
8.1
8.0
8.5
7.8
8.5
   
ROE – as-reported (%)
15.6
15.4
14.1
13.7
13.2
14.9
13.8
14.8
13.7
14.8
   
ROE – operational (%)
16.4
16.1
15.0
14.6
14.1
15.7
14.9
15.8
14.6
15.8
   
Cash flow interest coverage
7.0
6.5
6.5
6.7
5.5
6.1
6.3
6.6
6.7
6.6
   
Debt to capital ratio (%)
60.4
59.7
57.4
55.9
56.7
57.4
57.0
56.6
55.9
56.6
   
Debt to capital ratio, excluding securitization debt (%)
59.8
59.1
56.7
55.3
56.1
55.6
55.2
54.8
55.3
54.8
   
Net debt to net capital ratio, excluding securitization debt (%)
54.1
54.8
52.6
52.2
53.4
51.5
51.3
51.6
52.2
51.6
Utility
   
GWh billed
                    
   
     Residential
10,671
6,992
7,893
7,100
11,213
7,421
9,645
7,705
14,992
17,350
   
     Commercial & Gov’t
8,646
6,992
6,756
7,095
8,794
7,240
7,064
7,384
13,851
14,448
   
     Industrial
10,110
8,626
8,139
8,790
9,473
9,235
8,733
9,862
16,929
18,596
   
     Wholesale
1,431
1,240
1,387
1,313
1,164
998
1,317
971
2,700
2,287
   
O&M expense/MWh
$14.43
$23.95
$18.51
$20.96
$15.77
$20.18
$17.29
$19.21
$19.75
$18.24
   
Reliability
                    
   
     SAIFI
1.9
1.9
1.8
1.7
1.7
1.8
1.7
1.8
1.7
1.8
   
     SAIDI
227
216
208
194
203
210
213
207
194
207
Entergy Nuclear
   
Net MW in operation
4,998
4,998
4,998
4,998
4,998
4,998
4,998
4,998
4,998
4,998
   
Avg. realized price per MWh
$61.59
$56.69
$63.84
$59.22
$61.70
$59.43
$58.72
$57.69
$61.66
$58.22
   
Production cost/MWh (v)
$21.77
$22.77
$23.14
$24.30
$22.57
$23.20
$23.70
$24.40
$23.69
$24.05
   
Non-fuel O&M expense/ purchased power per MWh (v)
$21.19
$23.06
$22.44
$25.33
$22.11
$23.60
$23.63
$25.49
$23.80
$24.54
   
GWh billed
10,316
10,489
10,074
8,980
10,876
11,052
10,255
9,868
19,054
20,123
   
Capacity factor (%)
95
94
92
81
100
99
94
90
87
92
                         
 
(v) 2009 and 2010 excludes the effect of the non-utility nuclear spin-off expenses special item at Entergy Nuclear.
 


D.  
Planned Capital Expenditures

The capital plan for 2010 through 2012 anticipates $7.1 billion for investment, including $2.8 billion of maintenance capital, as shown in Appendix D.  The remaining $4.3 billion is for specific investments (as well as other initiatives) such as:
 
·  
Utility:  the Utility’s portfolio transformation strategy including the 580 MW Acadia Unit 2 purchase for $300 million, or $517/kW, pending regulatory approval and assuming closing by March 31, 2011, with a total expected cost of $329 million (or $567/kW) including planned plant upgrades, transaction costs, and contingencies (but excluding transmission upgrades); the steam generator replacement at Entergy Louisiana’s Waterford 3 nuclear unit; an approximate 178 MW uprate project at Grand Gulf; transmission upgrades and spending to comply with revised NRC security requirements and anticipated revisions to NERC Transmission Planning rules.  The three year capital plan also includes $420 million for the installation of scrubbers and low NOx burners at White Bluff which was delayed upon approval of a variance from the October 2013 compliance date by the Arkansas Pollution Control and Ecology Commission.
 
·  
Entergy Nuclear:  dry cask storage, nuclear license renewal efforts, component replacement across the fleet, NYPA value sharing, the Indian Point Independent Safety Evaluation and spending to comply with revised NRC security requirements.


Appendix D:  2010 – 2012 Planned Capital Expenditures
($ in millions) – Prepared February 2010
        
 
2010
2011
2012
Total
Maintenance capital
        
Utility and Parent & Other
(including non-nuclear wholesale assets)
785
790
830
2,405
  Entergy Nuclear
92
140
123
355
    Subtotal
877
930
953
2,760
Other capital commitments
        
   Utility and Parent & Other
     (including non-nuclear wholesale assets)
991
1,578
926
3,495
   Entergy Nuclear
349
220
219
788
    Subtotal
1,340
1,798
1,145
4,283
Total Planned Capital Expenditures
2,217
2,728
2,098
7,043
Storm Capital
35
13
13
61
Total Planned Capital Expenditures Including Storm Capital
2,252
2,741
2,111
7,104
         



E.  
Definitions

Appendix E 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 E:  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, excluding the impact of major storm activity
SAIDI
System average interruption duration index; average minutes per customer per year, excluding the impact of major storm activity
Number of 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, assuming timely renewal of plant operating licenses
Percent of planned generation sold
  forward
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval
Unit-contingent
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages
Unit-contingent with availability
guarantees
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract
Firm LD
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract
Offsetting positions
Transactions for the purchase of energy, generally to offset a Firm LD transaction which was used as a placeholder until a unit contingent transaction could be originated and executed
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 (including offsetting positions), given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market Power Purchase Agreement for Palisades
Average contract revenue per MWh
Price at which the combination of generation output and capacity are expected to be sold to third parties (including offsetting positions), given existing contract or option exercise prices based on expected dispatch, excluding the revenue associated with the amortization of the below-market PPA for Palisades
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, excluding revenue from the amortization of the Palisades below-market PPA
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 plants generate 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 E:  Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures (continued)
Financial Measures – GAAP
  
Return on average invested capital – as-reported
12-months rolling net income attributable to Entergy Corporation (Net Income) adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
Return on average common equity – as-reported
12-months rolling Net Income divided by average common equity
Net margin – as-reported
12-months rolling Net Income divided by 12 months rolling revenue
Cash flow interest coverage
12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense
Book value per share
Common equity divided by end of period shares outstanding
Revolver capacity
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
Total debt
Sum of short-term and long-term debt, notes payable, capital leases, and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any
Debt of joint ventures (Entergy’s share)
Debt issued by business joint ventures at non-nuclear wholesale assets
Leases (Entergy’s share)
Operating leases held by subsidiaries capitalized at implicit interest rate
Debt to capital
Gross debt divided by total capitalization
Securitization debt
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at Entergy Texas
   
Financial Measures – Non-GAAP
  
Operational earnings
As-reported Net Income adjusted to exclude the impact of special items
Adjusted EBITDA
Earnings before interest, income taxes, depreciation and amortization and interest and dividend income, excluding decommissioning expense and other than temporary impairment losses on decommissioning trust fund assets
Return on average invested capital – operational
12-months rolling operational Net Income adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
Return on average common equity – operational
12-months rolling operational Net Income divided by average common equity
Net margin – operational
12-months rolling operational Net Income divided by 12 months rolling revenue
Total gross liquidity
Sum of cash and revolver capacity
Debt to capital, excluding securitization debt
Gross debt divided by total capitalization, excluding securitization debt
Net debt to net capital, excluding securitization debt
Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
Net debt including off-balance sheet liabilities, excluding securitization debt
Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalent, excluding securitization debt
   



F.  
GAAP to Non-GAAP Reconciliations

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

Appendix F-1: Reconciliation of GAAP to Non-GAAP Financial Measures – Return on Equity, Return on Invested Capital and Net Margin Metrics
($ in millions)
                
 
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
As-reported Net Income-rolling 12 months (A)
1,244
1,221
1,147
1,103
1,088
1,231
1,210
1,298
Preferred dividends
21
20
20
20
20
20
20
20
Tax effected interest expense
375
374
366
368
361
351
372
368
As-reported Net Income, rolling 12 months including preferred dividends and tax effected interest expense (B)
1,640
1,615
1,533
1,491
1,469
1,602
1,602
1,686
                 
Special items in prior quarters
(50)
(35)
(55)
(54)
(54)
(49)
(53)
(76)
                 
Special items in current quarter
                
Nuclear spin-off expenses
(17)
(20)
(17)
(17)
(15)
(21)
(40)
(10)
    Total special items (C)
(67)
(55)
(72)
(71)
(69)
(71)
(94)
(87)
                 
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
1,707
1,670
1,605
1,562
1,538
1,673
1,696
1,773
                 
Operational earnings, rolling 12 months (A-C)
1,311
1,276
1,219
1,174
1,157
1,302
1,304
1,385
                 
Average invested capital (D)
20,236
19,927
20,126
19,995
20,629
20,748
21,149
20,761
                 
Average common equity (E)
7,973
7,915
8,152
8,045
8,230
8,290
8,745
8,769
                 
Operating revenues (F)
12,825
13,094
13,018
12,275
11,248
10,746
10,716
11,058
                 
ROIC – as-reported % (B/D)
8.1
8.1
7.6
7.5
7.1
7.7
7.6
8.1
                 
ROIC – operational % ((B-C)/D)
8.4
8.4
8.0
7.8
7.5
8.1
8.0
8.5
                 
ROE – as-reported % (A/E)
15.6
15.4
14.1
13.7
13.2
14.9
13.8
14.8
                 
ROE – operational % ((A-C)/E)
16.4
16.1
15.0
14.6
14.1
15.7
14.9
15.8
                 
Net margin – as-reported % (A/F)
9.7
9.3
8.8
9.0
9.7
11.5
11.3
11.7
                 
Net margin – operational % ((A-C)/F)
10.2
9.7
9.4
9.6
10.3
12.1
12.2
12.5
                 



Appendix F-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
($ in millions)
                
 
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
Gross debt (A)
12,656
12,279
12,034
11,510
11,522
12,014
12,152
11,853
Less securitization debt (B)
318
310
310
301
301
838
838
829
Gross debt, excluding securitization  debt (C)
12,338
11,969
11,724
11,209
11,221
11,176
11,314
11,024
Less cash and cash equivalents (D)
2,556
1,920
1,803
1,281
1,131
1,710
1,657
1,336
 Net debt, excluding securitization debt (E)
9,782
10,049
9,921
9,928
10,090
9,466
9,657
9,688
                 
Total capitalization (F)
20,944
20,557
20,975
20,588
20,315
20,939
21,322
20,935
Less securitization debt (B)
318
310
310
301
301
838
838
829
Total capitalization, excluding securitization debt (G)
20,626
20,247
20,665
20,287
20,014
20,101
20,484
20,106
Less cash and cash equivalents (D)
2,556
1,920
1,803
1,281
1,131
1,710
1,657
1,336
Net capital, excluding securitization debt (H)
18,070
18,327
18,862
19,006
18,883
18,391
18,827
18,770
                 
Debt to capital ratio % (A/F)
60.4
59.7
57.4
55.9
56.7
57.4
57.0
56.6
                 
Debt to capital ratio, excluding securitization debt % (C/G)
59.8
59.1
56.7
55.3
56.1
55.6
55.2
54.8
                 
Net debt to net capital ratio, excluding securitization debt % (E/H)
54.1
54.8
52.6
52.2
53.4
51.5
51.3
51.6
                 
Off-balance sheet liabilities (I)
637
574
573
569
567
646
644
641
                 
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
55.7
56.2
54.0
53.6
54.8
53.1
52.9
53.2
                 
Revolver capacity (J)
374
645
725
1,585
1,647
1,464
1,417
1,311
                 
Gross liquidity (D+J)
2,930
2,565
2,528
2,866
2,778
3,174
3,074
2,647
                 

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 news 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:  (i) Entergy’s Form 10-K for the year ended December 31, 2009, (ii) Entergy’s Form 10-Q for the quarter ended March 31, 2010, and (iii) Entergy’s other reports and filings made under the Securities Exchange Act of 1934, (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms, (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs, (d) nuclear operating and regulatory risks, and (e) legislative and regulatory actions, and conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and in subsequent securities filings.



VIII.  
Financial Statements


 
Entergy Corporation
  
   
Consolidating Balance Sheet
  
June 30, 2010
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 72,088     $ 1,434     $ 3,633     $ 77,155  
    Temporary cash investments
     917,475       293,493       47,401       1,258,369  
     Total cash and cash equivalents
     989,563       294,927       51,034       1,335,524  
Securitization recovery trust account
     35,626       -       -       35,626  
Notes receivable
     -       1,415,022       (1,415,022 )     -  
Accounts receivable:
                                
   Customer
     449,868       196,846       -       646,714  
   Allowance for doubtful accounts
     (31,066 )     -       (203 )     (31,269 )
   Associated companies
     19,799       60,063       (79,862 )     -  
   Other
     159,636       -       17,526       177,162  
   Accrued unbilled revenues
     373,117       -       431       373,548  
     Total accounts receivable
     971,354       256,909       (62,108 )     1,166,155  
Deferred fuel costs
     19,155       -       -       19,155  
Accumulated deferred income taxes
     25,078       871       (546 )     25,403  
Fuel inventory - at average cost
     189,863       -       1,989       191,852  
Materials and supplies - at average cost
     538,024       306,266       2,054       846,344  
Deferred nuclear refueling outage costs
     112,695       138,542       -       251,237  
System agreement cost equalization
     23,424       -       -       23,424  
Prepayments and other
     69,831       210,551       187,420       467,802  
TOTAL
     2,974,613       2,623,088       (1,235,179 )     4,362,522  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     734,578       1,330,589       (2,026,928 )     38,239  
Decommissioning trust funds
     1,323,625       1,883,275       -       3,206,900  
Non-utility property - at cost (less accumulated depreciation)
     160,059       5,803       88,360       254,222  
Other
     71,003       6,137       35,173       112,313  
TOTAL
     2,289,265       3,225,804       (1,903,395 )     3,611,674  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     32,585,546       3,693,875       364,696       36,644,117  
Property under capital lease
     782,343       -       -       782,343  
Natural gas
     318,594       -       440       319,034  
Construction work in progress
     1,221,480       453,812       3,934       1,679,226  
Nuclear fuel under capital lease
     -       -       -       -  
Nuclear fuel
     696,034       566,601       -       1,262,635  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     35,603,997       4,714,288       369,070       40,687,355  
Less - accumulated depreciation and amortization
     16,417,850       625,325       152,512       17,195,687  
PROPERTY, PLANT AND EQUIPMENT - NET
     19,186,147       4,088,963       216,558       23,491,668  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     606,779       -       -       606,779  
    Other regulatory assets
     4,015,339       -       -       4,015,339  
    Deferred fuel costs
     172,202       -       -       172,202  
Goodwill
     374,099       3,073       -       377,172  
Accumulated deferred income taxes
     8,207       -       66,547       74,754  
Other
     252,199       807,934       (20,169 )     1,039,964  
TOTAL
     5,428,825       811,007       46,378       6,286,210  
              -                  
TOTAL ASSETS
   $ 29,878,850     $ 10,748,862     $ (2,875,638 )   $ 37,752,074  
                                 
*Totals may not foot due to rounding.
                                




Entergy Corporation  
   
Consolidating Balance Sheet  
June 30, 2010  
(Dollars in thousands)  
(Unaudited)  
                         
     U.S. Utilities     Entergy Nuclear     Parent & Other      
Consolidated
  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ 336,002     $ 28,452     $ 226,000     $ 590,454  
Notes payable:
                                
  Associated companies
     -       -       -       -  
  Other
     203,974       -       -       203,974  
Account payable:
                                
  Associated companies
     17,114       14,760       (31,874 )     -  
  Other
     745,746       214,051       16,943       976,740  
Customer deposits
     327,805       -       -       327,805  
Taxes accrued
     531,381       701,338       (1,232,719 )     -  
Accumulated deferred income taxes
     5,330       -       -       5,330  
Interest accrued
     162,048       3,091       6,080       171,219  
Deferred fuel costs
     109,926       -       -       109,926  
Obligations under capital leases
     2,432       -       -       2,432  
Pension and other postretirement liabilities
     35,853       5,435       -       41,288  
System agreement cost equalization
     79,018       -       -       79,018  
Other
     100,419       194,973       2,926       298,318  
TOTAL
     2,657,048       1,162,100       (1,012,644 )     2,806,504  
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     6,384,217       2,211,955       (592,184 )     8,003,988  
Accumulated deferred investment tax credits
     299,892       -       -       299,892  
Obligations under capital leases
     35,998       -       -       35,998  
Other regulatory liabilities
     524,962       -       -       524,962  
Decommissioning and retirement cost liabilities
     1,672,755       1,368,024       1,288       3,042,067  
Accumulated provisions
     91,918       2,445       4,593       98,956  
Pension and other postretirement liabilities
     1,720,845       459,750       -       2,180,595  
Long-term debt
     8,405,796       157,419       2,457,111       11,020,326  
Other
     709,694       290,198       (342,568 )     657,324  
TOTAL
     19,846,077       4,489,791       1,528,240       25,864,108  
                                 
Subsidiaries' preferred stock without sinking fund
     186,510       -       30,214       216,724  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2010
     2,161,268       774,274       (2,932,994 )     2,548  
  Paid-in capital
     2,416,633       1,043,004       1,917,482       5,377,119  
  Retained earnings
     2,762,707       3,178,778       2,331,668       8,273,153  
  Accumulated other comprehensive income (loss)
     (125,393 )     100,915       (6,587 )     (31,065 )
  Less - treasury stock, at cost (67,257,674 shares in 2010)
     120,000       -       4,731,017       4,851,017  
  Total common shareholders' equity
     7,095,215       5,096,971       (3,421,448 )     8,770,738  
Subsidiaries' preferred stock without sinking fund
     94,000       -       -       94,000  
TOTAL
     7,189,215       5,096,971       (3,421,448 )     8,864,738  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 29,878,850     $ 10,748,862     $ (2,875,638 )   $ 37,752,074  
                                 
*Totals may not foot due to rounding.
                                
                                 

 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
December 31, 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 81,255     $ 1,187     $ 3,419     $ 85,861  
    Temporary cash investments
     1,158,014       392,088       73,588       1,623,690  
     Total cash and cash equivalents
     1,239,269       393,275       77,007       1,709,551  
Securitization recovery trust account
     13,098       -       -       13,098  
Notes receivable
     -       1,132,023       (1,132,023 )     -  
Accounts receivable:
                                
   Customer
     331,936       221,756       -       553,692  
   Allowance for doubtful accounts
     (27,428 )     -       (203 )     (27,631 )
   Associated companies
     27,783       28,940       (56,723 )     -  
   Other
     135,307       -       16,996       152,303  
   Accrued unbilled revenues
     302,293       -       170       302,463  
     Total accounts receivable
     769,891       250,696       (39,760 )     980,827  
Deferred fuel costs
     126,798       -       -       126,798  
Accumulated deferred income taxes
     -       -       -       -  
Fuel inventory - at average cost
     194,826       529       1,500       196,855  
Materials and supplies - at average cost
     526,543       297,132       2,027       825,702  
Deferred nuclear refueling outage costs
     106,428       118,862       -       225,290  
System agreement cost equalization
     70,000       -       -       70,000  
Prepayments and other
     68,406       432,968       (115,334 )     386,040  
TOTAL
     3,115,259       2,625,485       (1,206,583 )     4,534,161  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     734,578       1,330,589       (2,025,587 )     39,580  
Decommissioning trust funds
     1,325,863       1,885,320       -       3,211,183  
Non-utility property - at cost (less accumulated depreciation)
     156,333       6,038       85,293       247,664  
Other
     77,418       7,730       35,125       120,273  
TOTAL
     2,294,192       3,229,677       (1,905,169 )     3,618,700  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     32,426,732       3,540,860       376,180       36,343,772  
Property under capital lease
     783,096       -       -       783,096  
Natural gas
     313,817       -       439       314,256  
Construction work in progress
     1,134,194       411,523       1,602       1,547,319  
Nuclear fuel under capital lease
     527,521       -       -       527,521  
Nuclear fuel
     219,317       520,510       -       739,827  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     35,404,677       4,472,893       378,221       40,255,791  
Less - accumulated depreciation and amortization
     16,150,763       561,698       153,928       16,866,389  
PROPERTY, PLANT AND EQUIPMENT - NET
     19,253,914       3,911,195       224,293       23,389,402  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     619,500       -       -       619,500  
    Other regulatory assets
     3,647,154       -       -       3,647,154  
    Deferred fuel costs
     172,202       -       -       172,202  
Goodwill
     374,099       3,073       -       377,172  
Accumulated deferred income taxes
     -       -       -       -  
Other
     231,156       821,382       (46,232 )     1,006,306  
TOTAL
     5,044,111       824,455       (46,232 )     5,822,334  
              -                  
TOTAL ASSETS
   $ 29,707,476     $ 10,590,812     $ (2,933,691 )   $ 37,364,597  
                                 
*Totals may not foot due to rounding.
                                



 
Entergy Corporation  
   
Consolidating Balance Sheet  
December 31, 2009
  
(Dollars in thousands)  
(Unaudited)  
                     
                         
    U.S. Utilities     Entergy Nuclear     Parent & Other     Consolidated  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ 406,016     $ 30,941     $ 275,000     $ 711,957  
Notes payable:
                                
  Associated companies
     207,161       -       (207,161 )     -  
  Other
     30,031       -       -       30,031  
Account payable:
                                
  Associated companies
     6,920       7,543       (14,463 )     -  
  Other
     758,886       231,119       8,223       998,228  
Customer deposits
     323,092       250       -       323,342  
Taxes accrued
     12,742       -       (12,742 )     -  
Accumulated deferred income taxes
     41,125       -       7,459       48,584  
Interest accrued
     187,154       908       4,221       192,283  
Deferred fuel costs
     219,639       -       -       219,639  
Obligations under capital leases
     212,496       -       -       212,496  
Pension and other postretirement liabilities
     49,912       5,119       -       55,031  
System agreement cost equalization
     187,204       -       -       187,204  
Other
     48,643       163,328       3,231       215,202  
TOTAL
     2,691,021       439,208       63,768       3,193,997  
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     6,506,974       3,052,967       (2,137,622 )     7,422,319  
Accumulated deferred investment tax credits
     308,395       -       -       308,395  
Obligations under capital leases
     354,233       -       -       354,233  
Other regulatory liabilities
     421,985       -       -       421,985  
Decommissioning and retirement cost liabilities
     1,618,844       1,319,450       1,245       2,939,539  
Accumulated provisions
     127,634       9,090       4,591       141,315  
Pension and other postretirement liabilities
     1,771,351       469,688       -       2,241,039  
Long-term debt
     7,897,032       156,556       2,652,150       10,705,738  
Other
     750,024       317,661       (356,351 )     711,334  
TOTAL
     19,756,472       5,325,412       164,013       25,245,897  
                                 
Subsidiaries' preferred stock without sinking fund
     186,510       -       30,833       217,343  
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2009
     2,161,268       774,274       (2,932,994 )     2,548  
  Paid-in capital
     2,416,633       1,027,164       1,926,245       5,370,042  
  Retained earnings
     2,651,629       2,965,052       2,426,441       8,043,122  
  Accumulated other comprehensive income (loss)
     (130,057 )     59,702       (4,830 )     (75,185 )
  Less - treasury stock, at cost (65,634,580 shares in 2009)
     120,000       -       4,607,167       4,727,167  
  Total common shareholders' equity
     6,979,473       4,826,192       (3,192,305 )     8,613,360  
Subsidiaries' preferred stock without sinking fund
     94,000       -       -       94,000  
TOTAL
     7,073,473       4,826,192       (3,192,305 )     8,707,360  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 29,707,476     $ 10,590,812     $ (2,933,691 )   $ 37,364,597  
                                 
*Totals may not foot due to rounding.
                                
                                 

 
 
 
Entergy Corporation
  
   
Consolidating Balance Sheet
  
June 30, 2010 vs December 31, 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ (9,167 )   $ 247     $ 214     $ (8,706 )
    Temporary cash investments
     (240,539 )     (98,595 )     (26,187 )     (365,321 )
     Total cash and cash equivalents
     (249,706 )     (98,348 )     (25,973 )     (374,027 )
Securitization recovery trust account
     22,528       -       -       22,528  
Notes receivable
     -       282,999       (282,999 )     -  
Accounts receivable:
                                
   Customer
     117,932       (24,910 )     -       93,022  
   Allowance for doubtful accounts
     (3,638 )     -       -       (3,638 )
   Associated companies
     (7,984 )     31,123       (23,139 )     -  
   Other
     24,329       -       530       24,859  
   Accrued unbilled revenues
     70,824       -       261       71,085  
     Total accounts receivable
     201,463       6,213       (22,348 )     185,328  
Deferred fuel costs
     (107,643 )     -       -       (107,643 )
Accumulated deferred income taxes
     25,078       871       (546 )     25,403  
Fuel inventory - at average cost
     (4,963 )     (529 )     489       (5,003 )
Materials and supplies - at average cost
     11,481       9,134       27       20,642  
Deferred nuclear refueling outage costs
     6,267       19,680       -       25,947  
System agreement cost equalization
     (46,576 )     -       -       (46,576 )
Prepayments and other
     1,425       (222,417 )     302,754       81,762  
TOTAL
     (140,646 )     (2,397 )     (28,596 )     (171,639 )
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     -       -       (1,341 )     (1,341 )
Decommissioning trust funds
     (2,238 )     (2,045 )     -       (4,283 )
Non-utility property - at cost (less accumulated depreciation)
     3,726       (235 )     3,067       6,558  
Other
     (6,415 )     (1,593 )     48       (7,960 )
TOTAL
     (4,927 )     (3,873 )     1,774       (7,026 )
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     158,814       153,015       (11,484 )     300,345  
Property under capital lease
     (753 )     -       -       (753 )
Natural gas
     4,777       -       1       4,778  
Construction work in progress
     87,286       42,289       2,332       131,907  
Nuclear fuel under capital lease
     (527,521 )     -       -       (527,521 )
Nuclear fuel
     476,717       46,091       -       522,808  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     199,320       241,395       (9,151 )     431,564  
Less - accumulated depreciation and amortization
     267,087       63,627       (1,416 )     329,298  
PROPERTY, PLANT AND EQUIPMENT - NET
     (67,767 )     177,768       (7,735 )     102,266  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     (12,721 )     -       -       (12,721 )
    Other regulatory assets
     368,185       -       -       368,185  
    Deferred fuel costs
     -       -       -       -  
Goodwill
     -       -       -       -  
Accumulated deferred income taxes
     8,207       -       66,547       74,754  
Other
     21,043       (13,448 )     26,063       33,658  
TOTAL
     384,714       (13,448 )     92,610       463,876  
                                 
TOTAL ASSETS
   $ 171,374     $ 158,050     $ 58,053     $ 387,477  
                                 
*Totals may not foot due to rounding.
                                





Entergy Corporation  
   
Consolidating Balance Sheet  
June 30, 2010 vs December 31, 2009  
(Dollars in thousands)  
(Unaudited)  
                         
                         
                         
   
U.S. Utilities
      Entergy Nuclear      Parent & Other    
 
Consolidated
  
                         
LIABILITIES AND SHAREHOLDERS' EQUITY
                        
                         
CURRENT LIABILITIES
                        
                         
Currently maturing long-term debt
   $ (70,014 )   $ (2,489 )   $ (49,000 )   $ (121,503 )
Notes payable:
                                
  Associated companies
     (207,161 )     -       207,161       -  
  Other
     173,943       -       -       173,943  
Account payable:
                                
  Associated companies
     10,194       7,217       (17,411 )     -  
  Other
     (13,140 )     (17,068 )     8,720       (21,488 )
Customer deposits
     4,713       (250 )     -       4,463  
Taxes accrued
     518,639       701,338       (1,219,977 )     -  
Accumulated deferred income taxes
     (35,795 )     -       (7,459 )     (43,254 )
Interest accrued
     (25,106 )     2,183       1,859       (21,064 )
Deferred fuel costs
     (109,713 )     -       -       (109,713 )
Obligations under capital leases
     (210,064 )     -       -       (210,064 )
Pension and other postretirement liabilities
     (14,059 )     316       -       (13,743 )
System agreement cost equalization
     (108,186 )     -       -       (108,186 )
Other
     51,776       31,645       (305 )     83,116  
TOTAL
     (33,973 )     722,892       (1,076,412 )     (387,493 )
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     (122,757 )     (841,012 )     1,545,438       581,669  
Accumulated deferred investment tax credits
     (8,503 )     -       -       (8,503 )
Obligations under capital leases
     (318,235 )     -       -       (318,235 )
Other regulatory liabilities
     102,977       -       -       102,977  
Decommissioning and retirement cost liabilities
     53,911       48,574       43       102,528  
Accumulated provisions
     (35,716 )     (6,645 )     2       (42,359 )
Pension and other postretirement liabilities
     (50,506 )     (9,938 )     -       (60,444 )
Long-term debt
     508,764       863       (195,039 )     314,588  
Other
     (40,330 )     (27,463 )     13,783       (54,010 )
TOTAL
     89,605       (835,621 )     1,364,227       618,211  
                                 
Subsidiaries' preferred stock without sinking fund
     -       -       (619 )     (619 )
                                 
EQUITY
                                
                                 
Common Shareholders' Equity:
                                
Common stock, $.01 par value, authorized 500,000,000 shares;
                          
      issued 254,752,788 shares in 2010 and in 2009
     -       -       -       -  
  Paid-in capital
     -       15,840       (8,763 )     7,077  
  Retained earnings
     111,078       213,726       (94,773 )     230,031  
  Accumulated other comprehensive income (loss)
     4,664       41,213       (1,757 )     44,120  
  Less - treasury stock, at cost
     -       -       123,850       123,850  
  Total common shareholders' equity
     115,742       270,779       (229,143 )     157,378  
Subsidiaries' preferred stock without sinking fund
     -       -       -       -  
TOTAL
     115,742       270,779       (229,143 )     157,378  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 171,374     $ 158,050     $ 58,053     $ 387,477  
                                 
*Totals may not foot due to rounding.
                                
                                 


 
Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended June 30, 2010
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 2,214,972     $ -     $ (864 )   $ 2,214,108  
     Natural gas
     31,136       -       -       31,136  
     Competitive businesses
     -       580,852       36,854       617,706  
                         Total
     2,246,108       580,852       35,990       2,862,950  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     556,503       54,514       20,529       631,546  
          Purchased power
     407,246       1,694       7,518       416,458  
          Nuclear refueling outage expenses
     27,070       37,151       -       64,221  
          Other operation and maintenance
     470,957       234,756       (5,509 )     700,204  
     Decommissioning
     25,845       26,600       22       52,467  
     Taxes other than income taxes
     100,224       24,613       2,131       126,968  
     Depreciation and amortization
     216,330       35,340       3,897       255,567  
     Other regulatory charges (credits) - net
     (10,722 )     -       -       (10,722 )
                         Total
     1,793,453       414,668       28,588       2,236,709  
                                 
OPERATING INCOME
     452,655       166,184       7,402       626,241  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     17,630       -       -       17,630  
     Interest and dividend income
     34,710       34,486       (33,404 )     35,792  
     Other than temporary impairment losses
     -       (837 )     -       (837 )
     Miscellaneous - net
     (4,008 )     (5,770 )     (7,002 )     (16,780 )
                          Total
     48,332       27,879       (40,406 )     35,805  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     124,397       (1,916 )     4,821       127,302  
     Other interest - net
     15,693       4,995       189       20,877  
     Allowance for borrowed funds used during construction
     (10,323 )     -       -       (10,323 )
                         Total
     129,767       3,079       5,010       137,856  
                                 
INCOME BEFORE INCOME TAXES
     371,220       190,984       (38,014 )     524,190  
                                 
Income taxes
     141,047       71,484       (8,624 )     203,907  
                                 
CONSOLIDATED NET INCOME
     230,173       119,500       (29,390 )     320,283  
                                 
Preferred dividend requirements of subsidiaries
     4,334       -       683       5,017  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 225,839     $ 119,500     $ (30,073 )   $ 315,266  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.20     $ 0.63     $ (0.16 )   $ 1.67  
   DILUTED
   $ 1.18     $ 0.63     $ (0.16 )   $ 1.65  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             188,776,240  
   DILUTED
                             190,717,958  
                                 
*Totals may not foot due to rounding.
                                
                                 
                                 
                                 



Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended June 30, 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 1,918,996     $ -     $ (550 )   $ 1,918,446  
     Natural gas
     28,834       -       -       28,834  
     Competitive businesses
     -       544,929       28,580       573,509  
                         Total
     1,947,830       544,929       28,030       2,520,789  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     457,430       47,253       16,388       521,071  
          Purchased power
     312,365       5,820       4,734       322,919  
          Nuclear refueling outage expenses
     26,056       34,178       -       60,234  
          Other operation and maintenance
     483,332       203,604       9,409       696,345  
     Decommissioning
     24,537       24,750       20       49,307  
     Taxes other than income taxes
     97,327       23,611       1,463       122,401  
     Depreciation and amortization
     221,920       35,025       3,744       260,689  
     Other regulatory charges (credits) - net
     13,327       -       -       13,327  
                         Total
     1,636,294       374,241       35,758       2,046,293  
                                 
OPERATING INCOME
     311,536       170,688       (7,728 )     474,496  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     15,782       -       -       15,782  
     Interest and dividend income
     48,424       35,751       (25,283 )     58,892  
     Other than temporary impairment losses
     -       (69,203 )     -       (69,203 )
     Miscellaneous - net
     (5,740 )     (3,149 )     (4,465 )     (13,354 )
                          Total
     58,466       (36,601 )     (29,748 )     (7,883 )
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     111,967       2,233       10,957       125,157  
     Other interest - net
     10,243       15,684       1,560       27,487  
     Allowance for borrowed funds used during construction
     (8,483 )     -       -       (8,483 )
                         Total
     113,727       17,917       12,517       144,161  
                                 
INCOME BEFORE INCOME TAXES
     256,275       116,170       (49,993 )     322,452  
                                 
Income taxes
     104,700       35,959       (50,018 )     90,641  
                                 
CONSOLIDATED NET INCOME
     151,575       80,211       25       231,811  
                                 
Preferred dividend requirements of subsidiaries
     4,332       -       665       4,998  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 147,243     $ 80,211     $ (641 )   $ 226,813  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.75     $ 0.41       -     $ 1.16  
   DILUTED
   $ 0.74     $ 0.40       -     $ 1.14  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             196,105,002  
   DILUTED
                             198,243,169  
                                 
*Totals may not foot due to rounding.
                                
                                 


 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended June 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 295,976     $ -     $ (314 )   $ 295,662  
     Natural gas
     2,302       -       -       2,302  
     Competitive businesses
     -       35,923       8,274       44,197  
                         Total
     298,278       35,923       7,960       342,161  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     99,073       7,261       4,141       110,475  
          Purchased power
     94,881       (4,126 )     2,784       93,539  
          Nuclear refueling outage expenses
     1,014       2,973       -       3,987  
          Other operation and maintenance
     (12,375 )     31,152       (14,918 )     3,859  
     Decommissioning
     1,308       1,850       2       3,160  
     Taxes other than income taxes
     2,897       1,002       668       4,567  
     Depreciation and amortization
     (5,590 )     315       153       (5,122 )
     Other regulatory charges (credits )- net
     (24,049 )     -       -       (24,049 )
                         Total
     157,159       40,427       (7,170 )     190,416  
                                 
OPERATING INCOME
     141,119       (4,504 )     15,130       151,745  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     1,848       -       -       1,848  
     Interest and dividend income
     (13,714 )     (1,265 )     (8,121 )     (23,100 )
     Other than temporary impairment losses
     -       68,366       -       68,366  
     Miscellaneous - net
     1,732       (2,621 )     (2,537 )     (3,426 )
                          Total
     (10,134 )     64,480       (10,658 )     43,688  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     12,430       (4,149 )     (6,136 )     2,145  
     Other interest - net
     5,450       (10,689 )     (1,371 )     (6,610 )
     Allowance for borrowed funds used during construction
     (1,840 )     -       -       (1,840 )
                         Total
     16,040       (14,838 )     (7,507 )     (6,305 )
                                 
INCOME BEFORE INCOME TAXES
     114,945       74,814       11,979       201,738  
                                 
Income taxes
     36,347       35,525       41,394       113,266  
                                 
CONSOLIDATED NET INCOME
     78,598       39,289       (29,415 )     88,472  
                                 
Preferred dividend requirements of subsidiaries
     2       -       18       19  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 78,596     $ 39,289     $ (29,432 )   $ 88,453  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.45     $ 0.22     $ (0.16 )   $ 0.51  
   DILUTED
   $ 0.44     $ 0.23     $ (0.16 )   $ 0.51  
                                 
                                 
*Totals may not foot due to rounding.
                                
                                 


Entergy Corporation
  
   
Consolidating Income Statement
  
Six Months Ended June 30, 2010
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 4,222,774     $ -     $ (1,736 )   $ 4,221,038  
     Natural gas
     127,163       -       -       127,163  
     Competitive businesses
     -       1,194,627       79,468       1,274,095  
                         Total
     4,349,937       1,194,627       77,732       5,622,296  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     1,034,558       109,625       46,031       1,190,214  
          Purchased power
     875,141       5,600       10,620       891,361  
          Nuclear refueling outage expenses
     54,670       71,840       -       126,510  
          Other operation and maintenance
     906,125       481,419       15,148       1,402,692  
     Decommissioning
     51,266       52,735       42       104,043  
     Taxes other than income taxes
     210,054       48,735       3,591       262,380  
     Depreciation and amortization
     443,876       73,030       7,865       524,771  
     Other regulatory charges (credits) - net
     17,370       -       -       17,370  
                         Total
     3,593,060       842,984       83,297       4,519,341  
                                 
OPERATING INCOME
     756,877       351,643       (5,565 )     1,102,955  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     30,926       -       -       30,926  
     Interest and dividend income
     72,538       77,683       (66,008 )     84,213  
     Other than temporary impairment losses
     -       (1,049 )     -       (1,049 )
     Miscellaneous - net
     (5,003 )     (7,478 )     (4,821 )     (17,302 )
                          Total
     98,461       69,156       (70,829 )     96,788  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     247,012       36,853       10,372       294,237  
     Other interest - net
     22,490       12,531       (1,879 )     33,142  
     Allowance for borrowed funds used during construction
     (18,325 )     -       -       (18,325 )
                         Total
     251,177       49,384       8,493       309,054  
                                 
INCOME BEFORE INCOME TAXES
     604,161       371,415       (84,887 )     890,689  
                                 
Income taxes
     231,017       157,689       (37,114 )     351,592  
                                 
CONSOLIDATED NET INCOME
     373,144       213,726       (47,773 )     539,097  
                                 
Preferred dividend requirements of subsidiaries
     8,667       -       1,366       10,033  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 364,477     $ 213,726     $ (49,139 )   $ 529,064  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.93     $ 1.13     $ (0.26 )   $ 2.80  
   DILUTED
   $ 1.91     $ 1.12     $ (0.26 )   $ 2.77  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             188,988,284  
   DILUTED
                             190,999,699  
                                 
*Totals may not foot due to rounding.
                                
                                 


 
Entergy Corporation
  
   
Consolidating Income Statement
  
Six Months Ended June 30, 2009
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 3,947,153     $ -     $ (1,790 )   $ 3,945,363  
     Natural gas
     102,884       -       -       102,884  
     Competitive businesses
     -       1,201,116       60,538       1,261,654  
                         Total
     4,050,037       1,201,116       58,748       5,309,901  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     1,235,487       98,720       32,853       1,367,060  
          Purchased power
     628,897       7,655       9,622       646,174  
          Nuclear refueling outage expenses
     51,146       65,867       -       117,013  
          Other operation and maintenance
     905,991       403,562       31,836       1,341,389  
     Decommissioning
     49,574       48,436       40       98,050  
     Taxes other than income taxes
     203,731       49,870       3,197       256,798  
     Depreciation and amortization
     442,280       68,665       7,596       518,541  
     Other regulatory charges (credits) - net
     (16,147 )     -       -       (16,147 )
                         Total
     3,500,959       742,775       85,144       4,328,878  
                                 
OPERATING INCOME
     549,078       458,341       (26,396 )     981,023  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     32,730       -       -       32,730  
     Interest and dividend income
     91,530       65,057       (51,309 )     105,278  
     Other than temporary impairment losses
     -       (84,939 )     -       (84,939 )
     Miscellaneous - net
     (8,463 )     (8,207 )     (9,983 )     (26,653 )
                          Total
     115,797       (28,089 )     (61,292 )     26,416  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     221,676       4,358       27,089       253,123  
     Other interest - net
     15,786       26,766       4,228       46,780  
     Allowance for borrowed funds used during construction
     (18,294 )     -       -       (18,294 )
                         Total
     219,168       31,124       31,317       281,609  
                                 
INCOME BEFORE INCOME TAXES
     445,707       399,128       (119,005 )     725,830  
                                 
Income taxes
     178,163       138,036       (62,513 )     253,686  
                                 
CONSOLIDATED NET INCOME
     267,544       261,092       (56,492 )     472,144  
                                 
Preferred dividend requirements of subsidiaries
     8,665       -       1,331       9,996  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 258,879     $ 261,092     $ (57,823 )   $ 462,148  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.33     $ 1.34     $ (0.29 )   $ 2.38  
   DILUTED
   $ 1.31     $ 1.32     $ (0.28 )   $ 2.35  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             194,359,001  
   DILUTED
                             198,150,768  
                                 
*Totals may not foot due to rounding.
                                
                                 
                                 






Entergy Corporation
  
   
Consolidating Income Statement
  
Six Months Ended June 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 275,621     $ -     $ 54     $ 275,675  
     Natural gas
     24,279       -       -       24,279  
     Competitive businesses
     -       (6,489 )     18,930       12,441  
                         Total
     299,900       (6,489 )     18,984       312,395  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     (200,929 )     10,905       13,178       (176,846 )
          Purchased power
     246,244       (2,055 )     998       245,187  
          Nuclear refueling outage expenses
     3,524       5,973       -       9,497  
          Other operation and maintenance
     134       77,857       (16,688 )     61,303  
     Decommissioning
     1,692       4,299       2       5,993  
     Taxes other than income taxes
     6,323       (1,135 )     394       5,582  
     Depreciation and amortization
     1,596       4,365       269       6,230  
     Other regulatory charges (credits )- net
     33,517       -       -       33,517  
                         Total
     92,101       100,209       (1,847 )     190,463  
                                 
OPERATING INCOME
     207,799       (106,698 )     20,831       121,932  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     (1,804 )     -       -       (1,804 )
     Interest and dividend income
     (18,992 )     12,626       (14,699 )     (21,065 )
     Other than temporary impairment losses
     -       83,890       -       83,890  
     Miscellaneous - net
     3,460       729       5,162       9,351  
                          Total
     (17,336 )     97,245       (9,537 )     70,372  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     25,336       32,495       (16,717 )     41,114  
     Other interest - net
     6,704       (14,235 )     (6,107 )     (13,638 )
     Allowance for borrowed funds used during construction
     (31 )     -       -       (31 )
                         Total
     32,009       18,260       (22,824 )     27,445  
                                 
INCOME BEFORE INCOME TAXES
     158,454       (27,713 )     34,118       164,859  
                                 
Income taxes
     52,854       19,653       25,399       97,906  
                                 
CONSOLIDATED NET INCOME
     105,600       (47,366 )     8,719       66,953  
                                 
Preferred dividend requirements of subsidiaries
     2       -       35       37  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 105,598     $ (47,366 )   $ 8,684     $ 66,916  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.60     $ (0.21 )   $ 0.03     $ 0.42  
   DILUTED
   $ 0.60     $ (0.20 )   $ 0.02     $ 0.42  
                                 
                                 
*Totals may not foot due to rounding.
                                
                                 



Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended June 30, 2010
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 8,158,761     $ -     $ (3,070 )   $ 8,155,691  
     Natural gas
     196,492       -       -       196,492  
     Competitive businesses
     -       2,548,765       157,097       2,705,862  
                         Total
     8,355,253       2,548,765       154,027       11,058,045  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     1,824,461       226,925       80,096       2,131,482  
          Purchased power
     1,602,662       13,585       24,143       1,640,390  
          Nuclear refueling outage expenses
     108,541       142,266       -       250,807  
          Other operation and maintenance
     1,838,145       926,775       48,696       2,813,616  
     Decommissioning
     101,375       103,597       84       205,056  
     Taxes other than income taxes
     408,822       94,934       5,687       509,443  
     Depreciation and amortization
     927,836       145,813       15,356       1,089,005  
     Other regulatory charges (credits) - net
     11,789       -       -       11,789  
                         Total
     6,823,631       1,653,895       174,062       8,651,588  
                                 
OPERATING INCOME
     1,531,622       894,870       (20,035 )     2,406,457  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     57,742       -       -       57,742  
     Interest and dividend income
     161,513       182,688       (128,608 )     215,593  
     Other than temporary impairment losses
     -       (2,209 )     -       (2,209 )
     Miscellaneous - net
     (621 )     (18,632 )     (11,792 )     (31,045 )
                          Total
     218,634       161,847       (140,400 )     240,081  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     488,824       41,761       31,245       561,830  
     Other interest - net
     38,657       32,383       (1,715 )     69,325  
     Allowance for borrowed funds used during construction
     (33,265 )     -       -       (33,265 )
                         Total
     494,216       74,144       29,530       597,890  
                                 
INCOME BEFORE INCOME TAXES
     1,256,040       982,573       (189,965 )     2,048,648  
                                 
Income taxes
     441,535       398,919       (109,809 )     730,645  
                                 
CONSOLIDATED NET INCOME
     814,505       583,654       (80,156 )     1,318,003  
                                 
Preferred dividend requirements of subsidiaries
     17,331       -       2,664       19,995  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 797,174     $ 583,654     $ (82,820 )   $ 1,298,008  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 4.19     $ 3.07     $ (0.43 )   $ 6.83  
   DILUTED
   $ 4.15     $ 3.03     $ (0.43 )   $ 6.75  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             190,108,744  
   DILUTED
                             192,304,286  
                                 
*Totals may not foot due to rounding.
                                
                                 



Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended June 30, 2009
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 9,451,674     $ -     $ (3,601 )   $ 9,448,073  
     Natural gas
     201,360       -       -       201,360  
     Competitive businesses
     -       2,469,279       155,941       2,625,220  
                         Total
     9,653,034       2,469,279       152,340       12,274,653  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     3,368,857       206,938       101,693       3,677,488  
          Purchased power
     1,735,984       11,785       20,761       1,768,530  
          Nuclear refueling outage expenses
     100,229       131,445       -       231,674  
          Other operation and maintenance
     1,873,439       794,269       94,865       2,762,573  
     Decommissioning
     98,334       96,235       79       194,648  
     Taxes other than income taxes
     418,020       95,701       5,515       519,236  
     Depreciation and amortization
     906,947       133,897       15,596       1,056,440  
     Other regulatory charges (credits) - net
     (25,783 )     -       -       (25,783 )
                         Total
     8,476,027       1,470,270       238,509       10,184,806  
                                 
OPERATING INCOME
     1,177,007       999,009       (86,169 )     2,089,847  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     58,881       -       -       58,881  
     Interest and dividend income
     168,183       119,185       (89,958 )     197,410  
     Other than temporary impairment losses
     -       (106,535 )     -       (106,535 )
     Miscellaneous - net
     (19,167 )     (15,566 )     (4,229 )     (38,962 )
                          Total
     207,897       (2,916 )     (94,187 )     110,794  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     440,377       5,054       65,544       510,975  
     Other interest - net
     38,070       49,713       31,720       119,503  
     Allowance for borrowed funds used during construction
     (33,508 )     -       -       (33,508 )
                         Total
     444,939       54,767       97,264       596,970  
                                 
INCOME BEFORE INCOME TAXES
     939,965       941,326       (277,620 )     1,603,671  
                                 
Income taxes
     352,780       248,268       (120,379 )     480,669  
                                 
CONSOLIDATED NET INCOME
     587,185       693,058       (157,241 )     1,123,002  
                                 
Preferred dividend requirements of subsidiaries
     17,329       -       2,662       19,991  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 569,856     $ 693,058     $ (159,903 )   $ 1,103,011  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 2.97     $ 3.61     $ (0.84 )   $ 5.74  
   DILUTED
   $ 2.86     $ 3.48     $ (0.72 )   $ 5.62  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             192,100,820  
   DILUTED
                             199,034,201  
                                 
*Totals may not foot due to rounding.
                                
                                 



Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended June 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
   
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ (1,292,913 )   $ -     $ 531     $ (1,292,382 )
     Natural gas
     (4,868 )     -       -       (4,868 )
     Competitive businesses
     -       79,486       1,156       80,642  
                         Total
     (1,297,781 )     79,486       1,687       (1,216,608 )
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     (1,544,396 )     19,987       (21,597 )     (1,546,006 )
          Purchased power
     (133,322 )     1,800       3,382       (128,140 )
          Nuclear refueling outage expenses
     8,312       10,821       -       19,133  
          Other operation and maintenance
     (35,294 )     132,506       (46,169 )     51,043  
     Decommissioning
     3,041       7,362       5       10,408  
     Taxes other than income taxes
     (9,198 )     (767 )     172       (9,793 )
     Depreciation and amortization
     20,889       11,916       (240 )     32,565  
     Other regulatory charges (credits )- net
     37,572       -       -       37,572  
                         Total
     (1,652,396 )     183,625       (64,447 )     (1,533,218 )
                                 
OPERATING INCOME
     354,615       (104,139 )     66,134       316,610  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     (1,139 )     -       -       (1,139 )
     Interest and dividend income
     (6,670 )     63,503       (38,650 )     18,183  
     Other than temporary impairment losses
     -       104,326       -       104,326  
     Miscellaneous - net
     18,546       (3,066 )     (7,563 )     7,917  
                          Total
     10,737       164,763       (46,213 )     129,287  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     48,447       36,707       (34,299 )     50,855  
     Other interest - net
     587       (17,330 )     (33,435 )     (50,178 )
     Allowance for borrowed funds used during construction
     243       -       -       243  
                         Total
     49,277       19,377       (67,734 )     920  
                                 
INCOME BEFORE INCOME TAXES
     316,075       41,247       87,655       444,977  
                                 
Income taxes
     88,755       150,651       10,570       249,976  
                                 
CONSOLIDATED NET INCOME
     227,320       (109,404 )     77,085       195,001  
                                 
Preferred dividend requirements of subsidiaries
     1       -       2       4  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 227,319     $ (109,404 )   $ 77,083     $ 194,997  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.22     $ (0.54 )   $ 0.41     $ 1.09  
   DILUTED
   $ 1.29     $ (0.45 )   $ 0.29     $ 1.13  
                                 
                                 
*Totals may not foot due to rounding.
                                
                                 
                                 



Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Three Months Ended June 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2010
    
2009
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 320,283     $ 231,811     $ 88,472  
Adjustments to reconcile consolidated net income to net cash flow
                        
provided by operating activities:
                        
  Reserve for regulatory adjustments
     (953 )     (2,840 )     1,887  
  Other regulatory charges (credits) - net
     (10,722 )     13,327       (24,049 )
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     408,353       348,761       59,592  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     209,108       94,419       114,689  
  Changes in working capital:
                        
     Receivables
     (221,275 )     (100,540 )     (120,735 )
     Fuel inventory
     11,326       13,668       (2,342 )
     Accounts payable
     102,344       75,831       26,513  
     Taxes accrued
     -       17,977       (17,977 )
     Interest accrued
     7,861       370       7,491  
     Deferred fuel
     (3,034 )     (9,446 )     6,412  
     Other working capital accounts
     (136,247 )     (36,587 )     (99,660 )
  Provision for estimated losses and reserves
     5,652       (19,923 )     25,575  
  Changes in other regulatory assets
     43,545       (7,695 )     51,240  
  Changes in pensions and other postretirement liabilities
     (33,303 )     (15,803 )     (17,500 )
  Other
     90,631       38,400       52,231  
Net cash flow provided by operating activities
     793,569       641,730       151,839  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (471,106 )     (476,319 )     5,213  
Allowance for equity funds used during construction
     17,630       15,783       1,847  
Nuclear fuel purchases
     (153,493 )     (30,678 )     (122,815 )
Proceeds from sale/leaseback of nuclear fuel
     -       10,170       (10,170 )
Proceeds from sale of assets and businesses
     -       8,654       (8,654 )
Changes in transition charge account
     (588 )     10,793       (11,381 )
Decrease (increase) in other investments
     (34,091 )     9,772       (43,863 )
Proceeds from nuclear decommissioning trust fund sales
     716,606       699,040       17,566  
Investment in nuclear decommissioning trust funds
     (732,411 )     (719,894 )     (12,517 )
Net cash flow used in investing activities
     (657,453 )     (472,679 )     (184,774 )
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     483,244       293,317       189,927  
    Common stock and treasury stock
     2,638       1,764       874  
  Retirement of long-term debt
     (674,483 )     (807,767 )     133,284  
  Repurchase of common stock
     (137,749 )     -       (137,749 )
  Changes in credit line borrowings - net
     30,491       (25,000 )     55,491  
  Dividends paid:
                        
     Common stock
     (156,904 )     (147,074 )     (9,830 )
     Preferred stock
     (5,018 )     (4,997 )     (21 )
Net cash flow used in financing activities
     (457,781 )     (689,757 )     231,976  
                         
Effect of exchange rates on cash and cash equivalents
     155       (1,345 )     1,500  
                         
Net increase (decrease) in cash and cash equivalents
     (321,510 )     (522,051 )     200,541  
                         
Cash and cash equivalents at beginning of period
     1,657,034       1,802,958       (145,924 )
                         
Cash and cash equivalents at end of period
   $ 1,335,524     $ 1,280,907     $ 54,617  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 138,166     $ 144,294     $ (6,128 )
     Income taxes
   $ 27,439     $ 12,000     $ 15,439  
                         
   Noncash financing activities:
                        
     Long-term debt refunded with proceeds from
                        
        long-term debt issued in prior period
   $ (150,000 )     -     $ (150,000 )
                         
                         
                         

 


Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Six Months Ended June 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2010
    
2009
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 539,097     $ 472,144     $ 66,953  
Adjustments to reconcile consolidated net income to net cash flow
                        
provided by operating activities:
                        
  Reserve for regulatory adjustments
     (515 )     (1,630 )     1,115  
  Other regulatory charges (credits) - net
     17,370       (16,147 )     33,517  
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     831,785       697,205       134,580  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     342,641       249,448       93,193  
  Changes in working capital:
                        
     Receivables
     (177,445 )     1,888       (179,333 )
     Fuel inventory
     5,002       (3,963 )     8,965  
     Accounts payable
     23,094       (58,177 )     81,271  
     Taxes accrued
     -       5,193       (5,193 )
     Interest accrued
     (28,815 )     (37,043 )     8,228  
     Deferred fuel
     (2,070 )     266,062       (268,132 )
     Other working capital accounts
     (116,720 )     (157,092 )     40,372  
  Provision for estimated losses and reserves
     (30,218 )     (18,642 )     (11,576 )
  Changes in other regulatory assets
     (22,703 )     (455,577 )     432,874  
  Changes in pensions and other postretirement liabilities
     (74,187 )     (44,961 )     (29,226 )
  Other
     161,518       117,641       43,877  
Net cash flow provided by operating activities
     1,467,834       1,016,349       451,485  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (918,582 )     (932,056 )     13,474  
Allowance for equity funds used during construction
     30,926       32,730       (1,804 )
Nuclear fuel purchases
     (218,829 )     (149,568 )     (69,261 )
Proceeds from sale/leaseback of nuclear fuel
     -       21,210       (21,210 )
Proceeds from sale of assets and businesses
     9,675       8,654       1,021  
Changes in transition charge account
     (22,528 )     2,962       (25,490 )
NYPA value sharing payment
     (72,000 )     (72,000 )     -  
Decrease (increase) in other investments
     62,325       17,111       45,214  
Proceeds from nuclear decommissioning trust fund sales
     1,487,387       1,282,206       205,181  
Investment in nuclear decommissioning trust funds
     (1,531,275 )     (1,330,730 )     (200,545 )
Net cash flow used in investing activities
     (1,172,901 )     (1,119,481 )     (53,420 )
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     525,789       783,304       (257,515 )
    Common stock and treasury stock
     8,716       2,691       6,025  
  Retirement of long-term debt
     (774,772 )     (1,022,790 )     248,018  
  Repurchase of common stock
     (137,749 )     -       (137,749 )
  Changes in credit line borrowings - net
     17,123       -       17,123  
  Dividends paid:
                        
     Common stock
     (298,796 )     (289,159 )     (9,637 )
     Preferred stock
     (10,033 )     (9,995 )     (38 )
Net cash flow used in financing activities
     (669,722 )     (535,949 )     (133,773 )
                         
Effect of exchange rates on cash and cash equivalents
     762       (503 )     1,265  
                         
Net increase (decrease) in cash and cash equivalents
     (374,027 )     (639,584 )     265,557  
                         
Cash and cash equivalents at beginning of period
     1,709,551       1,920,491       (210,940 )
                         
Cash and cash equivalents at end of period
   $ 1,335,524     $ 1,280,907     $ 54,617  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 309,311     $ 321,186     $ (11,875 )
     Income taxes
   $ 26,054     $ (3,139 )   $ 29,193  
                         
   Noncash financing activities:
                        
     Long-term debt retired (equity unit notes)
     -     $ (500,000 )   $ 500,000  
     Common stock issued in settlement of equity unit purchase contracts
     -     $ 500,000     $ (500,000 )
     Proceeds from long-term debt issued for the purpose
                        
        of refunding prior long-term debt
   $ 150,000       -     $ 150,000  
     Long-term debt refunded with proceeds from
                        
        long-term debt issued in prior period
   $ (150,000 )     -     $ (150,000 )
                         
                         



Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Twelve Months Ended June 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2010
    
2009
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 1,318,003     $ 1,123,002     $ 195,001  
Adjustments to reconcile consolidated net income to net cash flow
                        
provided by operating activities:
                        
  Reserve for regulatory adjustments
     607       (7,107 )     7,714  
  Other regulatory charges (credits) - net
     11,790       (25,783 )     37,573  
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     1,593,441       1,420,065       173,376  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     957,877       218,059       739,818  
  Changes in working capital:
                        
     Receivables
     (62,889 )     297,351       (360,240 )
     Fuel inventory
     28,256       733       27,523  
     Accounts payable
     67,020       (438,905 )     505,925  
     Taxes accrued
     (80,403 )     80,403       (160,806 )
     Interest accrued
     13,202       11,104       2,098  
     Deferred fuel
     (195,818 )     783,006       (978,824 )
     Other working capital accounts
     (187,838 )     (11,463 )     (176,375 )
  Provision for estimated losses and reserves
     (23,606 )     (16,860 )     (6,746 )
  Changes in other regulatory assets
     17,717       (819,752 )     837,469  
  Changes in pensions and other postretirement liabilities
     42,563       843,698       (801,135 )
  Other
     (115,279 )     (30,443 )     (84,836 )
Net cash flow provided by operating activities
     3,384,643       3,427,108       (42,465 )
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (1,917,771 )     (2,365,493 )     447,722  
Allowance for equity funds used during construction
     57,741       58,882       (1,141 )
Nuclear fuel purchases
     (594,735 )     (356,032 )     (238,703 )
Proceeds from sale/leaseback of nuclear fuel
     263,787       165,954       97,833  
Proceeds from sale of assets and businesses
     40,575       8,654       31,921  
Payment for purchase of plant
     -       (210,414 )     210,414  
Insurance proceeds received for property damages
     53,760       67,026       (13,266 )
Changes in transition charge account
     (26,526 )     1,002       (27,528 )
NYPA value sharing payment
     (72,000 )     (72,000 )     -  
Decrease (increase) in other investments
     139,368       39,444       99,924  
Proceeds from nuclear decommissioning trust fund sales
     2,775,704       2,186,302       589,402  
Investment in nuclear decommissioning trust funds
     (2,867,717 )     (2,225,258 )     (642,459 )
Net cash flow used in investing activities
     (2,147,814 )     (2,701,933 )     554,119  
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     1,745,954       2,439,456       (693,502 )
    Common stock and treasury stock
     34,223       9,604       24,619  
  Retirement of long-term debt
     (1,595,151 )     (2,126,203 )     531,052  
  Repurchase of common stock
     (750,874 )     (142,739 )     (608,135 )
  Redemption of preferred stock
     (1,847 )     -       (1,847 )
  Changes in credit line borrowings - net
     (7,877 )     (120,000 )     112,123  
  Dividends paid:
                        
     Common stock
     (586,593 )     (574,032 )     (12,561 )
     Preferred stock
     (19,996 )     (19,990 )     (6 )
Net cash flow used in financing activities
     (1,182,161 )     (533,904 )     (648,257 )
                         
Effect of exchange rates on cash and cash equivalents
     (51 )     3,215       (3,266 )
                         
Net increase (decrease) in cash and cash equivalents
     54,617       194,486       (139,869 )
                         
Cash and cash equivalents at beginning of period
     1,280,907       1,086,421       194,486  
                         
Cash and cash equivalents at end of period
   $ 1,335,524     $ 1,280,907     $ 54,617  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 556,542     $ 593,397     $ (36,855 )
     Income taxes
   $ 72,250     $ 6,239     $ 66,011  
                         
   Noncash financing activities:
                        
     Long-term debt retired (equity unit notes)
     -     $ (500,000 )   $ 500,000  
     Common stock issued in settlement of equity unit purchase contracts
     -     $ 500,000     $ (500,000 )
     Proceeds from long-term debt issued for the purpose
                        
        of refunding prior long-term debt
   $ 150,000       -     $ 150,000  
     Long-term debt refunded with proceeds from
                        
        long-term debt issued in prior period
   $ (150,000 )     -     $ (150,000 )