EX-99.1 2 a07810991.htm EARNINGS RELEASE a07810991.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
October 21, 2010
ENTERGY REPORTS THIRD QUARTER EARNINGS

NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported third quarter 2010 earnings of $2.62 per share on an as-reported basis and $2.76 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
Third Quarter and Year-to-Date 2010 vs. 2009
(Per share in U.S. $)
            
 
Third Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
As-Reported Earnings
2.62
2.32
0.30
5.38
4.66
0.72
             
Less Special Items
(0.14)
(0.08)
(0.06)
(0.40)
(0.26)
(0.14)
             
Operational Earnings
2.76
2.40
0.36
5.78
4.92
0.86
             
Weather Impact
0.29
0.03
0.26
0.55
-
0.55
             

Operational Earnings Highlights for Third Quarter 2010
·  
Utility’s earnings were higher primarily due to increased net revenue, which was partially offset by an increase in non-fuel operation and maintenance expense.
·  
Entergy Nuclear’s earnings decreased as a result of lower net revenue, resulting from decreased generation output due to increased planned and unplanned outage days, and higher non-fuel operation and maintenance expense.
·  
Parent & Other’s results improved due primarily to lower income tax expense on Parent & Other activities.

“Despite challenging times, near-record warm temperatures boosted Entergy’s third quarter earnings per share to the highest of any quarterly period in company history,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer.  “Even with this achievement, we continue to focus on the building blocks for delivering long-term value – safety, operational excellence, and meeting regulatory expectations – in both the Utility and Entergy Wholesale Commodities businesses as well as maintaining solid financial strength and disciplined risk management.”
 
Entergy’s business highlights include the following:
·  
Entergy Texas reached an unopposed settlement in its base rate case, subject to approval by the Public Utility Commission of Texas, reflecting a total $68 million rate increase to be fully implemented by May 2011.
·  
The J.A. FitzPatrick plant completed a record-setting “breaker to breaker” run, setting a new all-time record for the number of days of continuous operation within the Entergy fleet and seventh all-time for all boiling water reactors in the United States.
·  
Reports by the New York Independent System Operator and ISO New England point to the criticality of Indian Point and Vermont Yankee to their regions.
·  
For the ninth consecutive year Entergy was named to the Dow Jones Sustainability World Index.
 
Entergy will host a teleconference to discuss this release at 10 a.m. CT on Thursday, October 21, 2010, with access by telephone, 719-457-2080, confirmation code 5590047.  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 October 28, 2010, by dialing 719-457-0820, confirmation code 5590047.  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 third 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 significantly warmer-than-normal weather, and the effect of previous rate actions.  Utility net revenue was partially offset by higher non-fuel operation and maintenance expense.  Entergy Nuclear’s third quarter 2010 earnings decreased as a result of lower net revenue attributable to lower generation, resulting from additional planned and unplanned outage days, and higher non-fuel operation and maintenance expense.  A lower effective tax rate provided a partial offset at Entergy Nuclear.  Parent and Other’s results were higher in the current period compared to a year ago due primarily to lower 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
Third Quarter and Year-to-Date 2010 vs. 2009 (see Appendix D for definitions of certain measures)
(Per share in U.S. $)
 
Third Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
As-Reported
            
Utility
1.78
1.50
0.28
3.68
2.80
0.88
Entergy Nuclear
0.71
1.02
(0.31)
1.83
2.34
(0.51)
Parent & Other
0.13
(0.20)
0.33
(0.13)
(0.48)
0.35
  Consolidated As-Reported Earnings
2.62
2.32
0.30
5.38
4.66
0.72
             
Less Special Items
            
Utility
-
-
-
-
-
-
Entergy Nuclear
(0.14)
(0.05)
(0.09)
(0.50)
(0.17)
(0.33)
Parent & Other
-
(0.03)
0.03
0.10
(0.09)
0.19
  Consolidated Special Items
(0.14)
(0.08)
(0.06)
(0.40)
(0.26)
(0.14)
             
Operational
            
Utility
1.78
1.50
0.28
3.68
2.80
0.88
Entergy Nuclear
0.85
1.07
(0.22)
2.33
2.51
(0.18)
Parent & Other
0.13
(0.17)
0.30
(0.23)
(0.39)
0.16
  Consolidated Operational Earnings
2.76
2.40
0.36
5.78
4.92
0.86
Weather Impact
0.29
0.03
0.26
0.55
-
0.55
             

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 third quarter 2010 was $1,697 million compared to $993 million in third quarter 2009.  The overall quarterly increase was due primarily to:
·  
The receipt of $703 million of proceeds associated with storm-related debt issuances from the Louisiana Utilities Restoration Corporation for  Entergy Louisiana and Entergy Gulf States Louisiana for hurricanes Gustav and Ike, and
·  
Higher Utility net revenue

Partially offsetting these increases was higher working capital requirements at the Utility.  In addition, intercompany tax payments contributed to line of business variances, but were largely offsetting between Utility, Entergy Nuclear, and Parent & Other.
 
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
Third Quarter and Year-to-Date 2010 vs. 2009
(U.S. $ in millions)
 
Third Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
Utility
1,426
642
784
2,419
1,320
1,099
Entergy Nuclear
175
337
(162)
725
709
16
Parent & Other
96
14
82
21
(20)
41
    Consolidated Net Cash Flow Provided by Operating Activities
1,697
993
704
3,165
2,009
1,156
             

II.  
Utility

In third quarter 2010, Utility’s as-reported and operational earnings were $1.78 per share compared to $1.50 per share on the same bases in third quarter 2009.  The Utility earnings increase in the current quarter is due primarily to higher net revenue as a result of both increased sales across all customer classes and rate adjustments associated with base rate cases at Entergy Arkansas and Entergy Texas implemented during the current quarter and prior year rate adjustments at Entergy Gulf States Louisiana and Entergy Louisiana under their formula rate plans.  Partially offsetting higher net revenue was higher non-fuel operation and maintenance expense driven by increased compensation-related expenses and higher outage costs at generating units. The net effect of lower depreciation expense, lower other income, and higher income tax expense were also partially offsetting. New depreciation rates established in the Arkansas rate case settlement contributed to the reduction in depreciation expense in the current quarter.  Other income decreased as a result of the absence of income from storm carrying charges and a gain on a land sale recorded in third quarter 2009.  Higher income tax expense was primarily due to the net effect of consolidated income tax adjustments across the Entergy companies, partially offset by state income tax benefits realized in connection with storm cost financings in Louisiana.

Electricity usage, in gigawatt-hour sales by customer segment, is included in Table 4.  Current quarter sales reflect the following:
·  
Residential sales in third quarter 2010, on a weather-adjusted basis, increased 0.9 percent compared to third quarter 2009.
·  
Commercial and governmental sales, on a weather-adjusted basis, increased 1.7 percent quarter over quarter.
·  
Industrial sales in the third quarter increased 8.5 percent compared to the same quarter of 2009.

The industrial customer segment reflected strong sales growth on continuing signs of economic recovery, which was also evident in the residential and commercial classes.  In addition, residential and commercial sales benefited from significantly warmer-than-normal weather.  The improvement in industrial sales in the third quarter 2010 was driven by inventory restocking and strong exports with the chemicals, refining, and miscellaneous manufacturing sectors leading the improvement.
 
Table 4 provides a comparative summary of the Utility’s operational performance measures.

Table 4:  Utility Operational Performance Measures
Third Quarter and Year-to-Date 2010 vs. 2009 (see Appendix D for definitions of measures)
   
 
Third Quarter
Year-to-Date
 
2010
2009
% Change
% Weather Adjusted
2010
2009
% Change
% Weather Adjusted
GWh billed
                
   Residential
12,365
11,213
10.3%
0.9%
29,715
26,206
13.4%
2.2%
   Commercial and governmental
9,341
8,794
6.2%
1.7%
23,789
22,644
5.1%
2.1%
   Industrial
10,276
9,473
8.5%
8.5%
28,871
26,402
9.4%
9.4%
   Total Retail Sales
31,982
29,480
8.5%
3.6%
82,375
75,252
9.5%
4.7%
   Wholesale
1,063
1,164
(8.7)%
  
3,351
3,864
(13.3)%
  
   Total Sales
33,045
30,644
7.8%
  
85,726
79,116
8.4%
  
O&M expense per MWh
$16.41
$15.77
4.1%
  
$17.54
$18.19
(3.6)%
  
Number of retail customers
                
   Residential
        
2,356,216
2,335,387
0.9%
  
   Commercial and governmental
        
350,808
346,574
1.2%
  
   Industrial
        
47,622
47,647
(0.1)%
  
                 

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

III.  
Entergy Nuclear

Entergy Nuclear earned $0.71 per share on an as-reported basis in third quarter 2010, compared to as-reported earnings of $1.02 per share in third quarter 2009.  On an operational basis, third quarter 2010 Entergy Nuclear earnings were $0.85 per share versus $1.07 per share in the third quarter of the prior year.  Entergy Nuclear’s operational earnings decreased as a result of lower net revenue due primarily to lower generation resulting from additional planned and unplanned outages.  Also, contributing to the decrease in earnings was higher non-fuel operation and maintenance expense due to higher compensation-related expenses.  Partially offsetting these decreases was lower income tax expense, which was primarily due to adjustments in an income tax reserve and the net effect of consolidated income tax adjustments.

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

Table 5:  Entergy Nuclear Operational Performance Measures
Third Quarter and Year-to-Date 2010 vs. 2009 (see Appendix D for definitions of measures)
   
 
Third 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
$61.41
$61.70
–%
$59.27
$61.68
(4)%
Production cost per MWh (a)
$27.79
$22.57
23%
$25.28
$23.28
9%
Non-fuel O&M expense/purchased power per MWh (a)
$28.77
$22.11
30%
$25.94
$23.18
12%
GWh billed
9,888
10,876
(9)%
30,011
29,929
–%
Capacity factor
91%
100%
(9)%
92%
91%
1%
Refueling outage days:
            
    FitzPatrick (b)
18
–
  
18
–
  
    Indian Point 2
–
–
  
33
–
  
    Indian Point 3
–
–
  
–
36
  
    Palisades
–
–
  
–
41
  
    Pilgrim
–
–
  
–
31
  
    Vermont Yankee
–
–
  
29
–
  
             
(a)
Third quarter and year-to-date periods in 2009 and 2010 exclude the effect of the special item for non-utility nuclear spin-off expenses.
(b)
Table reflects the duration of refueling outages that occurred in third quarter 2010; the FitzPatrick refueling outage continued for 17 days into the fourth quarter 2010.


 
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 2015 (see Appendix D for definitions of measures)
 
Balance of
2010
2011
2012
2013
2014
2015
Energy
            
Planned TWh of generation (c)
10
41
41
40
41
41
Percent of planned generation sold forward (d)
            
Unit-contingent
57%
78%
50%
25%
14%
12%
Unit-contingent with availability guarantees
33%
17%
14%
6%
3%
3%
Firm LD
–%
3%
14%
–%
8%
–%
    Offsetting positions
–%
(3)%
(2)%
–%
–%
–%
Total Energy Sold Forward (net)
90%
95%
76%
31%
25%
15%
Average contract price per MWh (e)
$57
$53
$50
$49
$51
$51
           
.
Capacity
            
Planned net MW in operation (c)
4,998
4,998
4,998
4,998
4,998
4,998
Percent of capacity sold forward
            
Bundled capacity and energy contracts
27%
26%
18%
16%
16%
16%
Capacity contracts
57%
31%
29%
26%
10%
–%
Total Capacity Sold Forward
84%
57%
47%
42%
26%
16%
Average capacity contract price per kW per month
$2.4
$3.0
$3.0
$2.8
$2.7
$–
             
Blended Capacity and Energy Recap (based on revenues)
            
Percent of planned energy and capacity sold forward
93%
95%
77%
33%
26%
14%
Average contract revenue per MWh (e)
$59
$55
$52
$52
$53
$51
             
 
(c)  Assumes successful license renewal at all plants.  License renewal applications are in process for four units (with current license expirations noted parenthetically): Vermont Yankee (3/21/2012), Pilgrim (6/8/2012), Indian Point 2 (9/28/2013), and Indian Point 3 (12/15/2015).
 
(d)  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.
 
(e)  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 earnings of $0.13 per share on an as-reported basis and an operational basis in third quarter 2010 compared to losses of $(0.20) on an as-reported basis and $(0.17) on an operational basis in third quarter 2009.  Lower income tax expense on Parent & Other activities was the primary factor driving results for the quarter.  The current quarter reflects an adjustment in income tax reserves resulting from a favorable Tax Court ruling.  The net effect of consolidated income tax adjustments also contributed.

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.  Efforts to eliminate spin-off dis-synergies are well under way, with expectations to eliminate these costs 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 (f)
 
 
 
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
           
 
(f)  Updated in 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) under way 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 (g)
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
 
(g)  Based on 2009 average fully diluted shares outstanding of approximately 196 million.

 
VI.  
Appendices

Five appendices are presented in this section as follows:
·  
Appendix A includes earnings per share variance analysis and details 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 definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
·  
Appendix E 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 third 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
Third 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
1.50
1.50
  
1.02
1.07
  
(0.20)
(0.17)
  
2.32
2.40
Income taxes – other
(0.05)
(0.05)
(h)
0.10
0.10
(i)
0.33
0.33
(j)
0.38
0.38
Net revenue
0.46
0.46
(k)
(0.20)
(0.20)
(l)
0.04
0.04
  
0.30
0.30
Share repurchase effect
0.07
0.07
(m)
0.03
0.03
  
0.01
0.01
  
0.11
0.11
Depreciation/ amortization expense
0.06
0.06
(n)
(0.01)
(0.01)
  
-
-
  
0.05
0.05
Interest and other charges
-
-
  
0.04
0.03
  
0.01
0.01
  
0.05
0.04
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
(0.03)
(0.03)
  
(0.01)
(0.01)
  
0.01
0.01
  
(0.03)
(0.03)
Other income (deductions)
(0.05)
(0.05)
(o)
(0.02)
(0.02)
  
(0.07)
(0.07)
(p)
(0.14)
(0.14)
Other operation & maintenance expense
(0.18)
(0.18)
(q)
(0.22)
(0.12)
(r)
-
(0.03)
  
(0.40)
(0.33)
2010 earnings
1.78
1.78
  
0.71
0.85
  
0.13
0.13
  
2.62
2.76
                       

Appendix A-2:  As-Reported and Operational Earnings Per Share Variance Analysis
Year-to-Date Third 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
2.80
2.80
  
2.34
2.51
  
(0.48)
(0.39)
  
4.66
4.92
Net revenue
1.15
1.15
(k)
(0.25)
(0.25)
(l)
0.06
0.06
(s)
0.96
0.96
Other than temporary impairment losses
0.00
0.00
  
0.23
0.23
(t)
0.00
0.00
  
0.23
0.23
Share repurchase effect
0.14
0.14
(m)
0.07
0.07
(m)
(0.01)
(0.01)
  
0.20
0.20
Income taxes – other
-
-
  
(0.03)
(0.03)
  
0.26
0.16
(j)
0.23
0.13
Interest and other charges
(0.10)
(0.10)
(u)
(0.02)
0.07
(v)
0.09
0.09
(w)
(0.03)
0.06
Depreciation/ amortization expense
0.05
0.05
(n)
(0.02)
(0.02)
  
0.00
0.00
  
0.03
0.03
Decommissioning expense
(0.01)
(0.01)
  
(0.02)
(0.02)
  
0.00
0.00
  
(0.03)
(0.03)
Nuclear refueling outage expense
(0.01)
(0.01)
  
(0.03)
(0.03)
  
0.00
0.00
  
(0.04)
(0.04)
Taxes other than income taxes
(0.05)
(0.05)
(x)
0.00
0.00
  
0.00
0.00
  
(0.05)
(0.05)
Other income (deductions)
(0.10)
(0.10)
(o)
0.02
0.02
  
(0.11)
(0.11)
(p)
(0.19)
(0.19)
Other operation & maintenance expense
(0.19)
(0.19)
(q)
(0.46)
(0.22)
(r)
0.06
(0.03)
  
(0.59)
(0.44)
2010 earnings
3.68
3.68
  
1.83
2.33
  
(0.13)
(0.23)
  
5.38
5.78
                       
 
 
(h)
The decrease in the current quarter is due primarily to the unfavorable effect of consolidated income tax adjustments, partially offset by state income tax benefits realized in connection with storm cost financings in Louisiana.
 
 
(i)
The increase in the current quarter is due primarily to the favorable effect of consolidated income tax adjustments and the reversal of a tax reserve related to a restructuring of the Entergy Nuclear Power Marketing business.
 
 
(j)
The current quarter and year-to-date increases are due primarily to a favorable Tax Court ruling addressing a foreign tax credit computation thus allowing the reversal of a previously established tax reserve on the issue.  Also contributing was the favorable effect of consolidated income tax adjustments.  Year-to-date is partially offset by decreases in valuation allowances on loss carryovers recorded in the prior year.  The as-reported increase reflects tax benefits recorded in connection with the Enexus Energy Corporation and EquaGen LLC business unwind decision resulting from implementation expenses that previously were not deductible for tax purpose.
 
Utility Net Revenue Variance Analysis
2010 vs. 2009
($ EPS)
Third Quarter
Year-to-Date
Weather
0.26
Weather
0.55
Sales growth/ pricing
0.24
Sales growth/ pricing
0.47
Other
(0.04)
Other
0.13
Total
0.46
Total
1.15
 (k)
The increases in the current quarter and year-to-date periods are due primarily to increased sales volumes across all customer classes, including favorable weather.  Also contributing in both periods was pricing adjustments resulting from operating company rate actions in Arkansas, Texas, and Louisiana, with Mississippi also benefiting on a year-to-date basis.  Rate refunds recorded at Entergy Louisiana and Entergy Gulf States Louisiana in the third quarter of 2009 also contributed to the current quarter and year-to-date increase.  In addition, the year-to-date variance reflects the absence of a regulatory charge at Entergy Texas associated with a May 2009 Federal Energy Regulatory Commission Order.
 
 (l)
The decrease in the current quarter is due primarily to lower generation resulting from an increase in planned and unplanned outage days.  On a year-to-date basis, the decrease is primarily due to lower pricing offset somewhat by slightly higher production due to more refueling outages in 2009 through the first three quarters compared to the current year.
 
(m)
The increases in the current quarter and year-to-date periods represent accretion associated with Entergy’s share repurchase programs.
 
(n)
The current quarter and year-to-date increases are due primarily to lower depreciation being recorded at Entergy Arkansas in accordance with a rate settlement approved by the Arkansas Public Service Commission.
 
(o)
The current quarter and year-to-date decreases are due primarily to lower storm-related carrying charges and the absence of a prior year gain recorded on a land sale, partially offset by an increase in affiliate dividend income with Parent & Other arising out of the use of proceeds from storm cost financings in Louisiana.
 
(p)
The decreases in the current quarter and year-to-date are due primarily to eliminations of higher affiliated dividend at the Utility as described in (o).
 
(q)
The current quarter and year-to-date decreases are due primarily to higher compensation-related expenses and higher outage costs at generating units.
 
(r)
The current quarter and year-to-date decreases are due primarily to higher compensation-related expenses and a write-off of capitalized engineering costs associated with a potential uprate project.  Also, incremental costs associated with the remediation of the tritium leak at Vermont Yankee were reflected in the year-to-date period.  In addition, as-reported results for the current quarter and year-to-date reflects non-utility nuclear spin-off expenses, including the business unwind of Enexus and EquaGen.
 
(s)
The year-to-date increase is due primarily to higher market heat rates for non-nuclear wholesale assets.
 
(t)
The increase year-to-date is due to the absence of significant impairments recorded in the prior year associated with decommissioning trust fund investments.
 
(u)
The year-to-date decrease is due to higher interest expense on increased debt borrowings.
 
(v)
As-reported interest expense drivers include a first quarter 2010 charge for the balance of fees associated with cancellation of the Enexus credit facility.  Going forward, no additional fees will be incurred, resulting in lower interest expense in the second and third quarters of 2010.  In addition, the year-to-date change on both as-reported and operational bases reflects lower affiliate guarantee fee expenses with Parent & Other.
 
(w)
The year-to-date increase is due to lower average revolver rate and lower Parent borrowings including Parent debt redemptions.
 
(x)
The decrease year-to-date is due primarily to higher ad valorem taxes and higher franchise taxes.
 
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)
Third Quarter and Year-to-Date 2010 vs. 2009
(Per share in U.S. $)
 
Third Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
Utility
            
None
-
-
-
-
-
-
             
Entergy Nuclear
            
Non-utility nuclear spin-off expenses (y)
(0.14)
(0.05)
(0.09)
(0.50)
(0.17)
(0.33)
             
Parent & Other
            
Non-utility nuclear spin-off expenses (y)
-
(0.03)
0.03
0.10
(0.09)
0.19
Total Special Items
(0.14)
(0.08)
(0.06)
(0.40)
(0.26)
(0.14)
             
(U.S. $ in millions)
            
 
Third Quarter
Year-to-Date
 
2010
2009
Change
2010
2009
Change
Utility
            
None
-
-
-
-
-
-
             
Entergy Nuclear
            
   Non-utility nuclear spin-off expenses (y)
(25.2)
(10.3)
(14.9)
(94.0)
(32.0)
(62.0)
             
Parent & Other
            
   Non-utility nuclear spin-off expenses (y)
-
(5.2)
5.2
18.5
(17.9)
36.4
Total Special Items
(25.2)
(15.5)
(9.7)
(75.5)
(49.9)
(25.6)
             
 
(y)  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 the first billing cycle of July 2010, EAI implemented its $63.7 million rate increase pursuant to the settlement approved by the APSC in June.
Background:  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.
Storm Cost Recovery Recent Activity:  In August 2010, Entergy Arkansas Restoration Funding, LLC, a special purpose bankruptcy-remote limited liability company wholly-owned by EAI, issued $124.1 million of storm recovery bonds in a single tranche, with an average life of 5.44 years and a coupon of 2.30%.  EAI added the proceeds (net of external issuance costs) to its general funds as reimbursement for previous storm-related expenditures.
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.  In June 2010, the APSC approved EAI’s financing order.  The financing order authorized 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.
 
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 process in the APSC Show Cause proceeding.  On August 31, 2010, the APSC directed EAI and all parties to compare all five strategic options at the same time, pursuant to a procedural schedule, as follows: (1) EAI Self-Provide; (2) EAI w/ 3rd party coordination agreements; (3) Successor Arrangements; (4) EAI as a stand-alone member of Southwest Power Pool Regional Transmission Organization (SPP RTO); and (5) EAI as a stand-alone member of Midwest Independent Transmission System Operator (MISO).  The procedural schedule calls for EAI to file its assessment and recommendations regarding each strategic option in April 2011, an evidentiary hearing in August 2011 and an APSC order in October 2011.  On September 16, 2010, EAI filed an initial draft of the Successor Arrangements.  The Successor Arrangements take the form of a draft Commitment, Operations and Dispatch Agreement (CODA).  EAI conducted a technical conference to discuss the Successor Arrangement strategic option on September 23, 2010.  On September 29, 2010, EAI filed a petition for clarification of the procedural schedule order concerning several issues including the timetable for selecting the most beneficial option for customers.  On September 30, 2010, Charles River Associates (CRA) presented its cost-benefit analysis (CBA) of the Entergy and Cleco regions joining the SPP RTO to the Entergy Regional State Committee (E-RSC).  CRA is also conducting addendum studies on EAI as a stand-alone member of the SPP RTO and MISO.  The SPP RTO stand-alone study is due October 27, 2010, to be followed by the MISO stand-alone study.
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 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’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 technical conferences in the coming months targeting specific subject matter.  On May 11, 2010, SPP filed a detailed EAI Stand-Alone CBA project schedule, contingent on certain milestones being reached in the SPP Entergy CBA.


 
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 8/10 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:  On August 26, 2010, EGSL made its revised 2009 test year FRP filing.  The filing reflected a 10.12% 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) an extraordinary cost change associated with decommissioning accruals related to EGSL’s River Bend Station approved by the Commission in July, and (2) $25.2 million for capacity costs.  The filing was not contested by the Staff or intervenors, and the rates became effective, beginning with the first billing cycle of September 2010, subject to review and final approval by the LPSC.
Background:  At its October 2009 Business and Executive (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.  At its May 19, 2010 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 2010 B&E session, the LPSC granted EGSL a $7.8 million increase effective September 2010 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.  Prior to that, EGSL had no funding in retail rates for decommissioning
   
Entergy Louisiana
 
Authorized ROE Range:  9.45% - 11.05%
 
Last Filed
Rate Base:
$3.0 billion
 
Filed 8/10 based on 12/31/09 test year
Formula Rate Plan Recent Activity: On August 26, 2010, ELL made its revised 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 increases outside of the FRP sharing mechanism: (1) an extraordinary cost change associated with decommissioning accruals related to ELL’s Waterford 3 Steam Electric Station approved by the Commission in July, and (2) $2.2 million for capacity costs.  The filing was not contested by the Staff or intervenors, and the rates became effective beginning with the first billing cycle of September 2010, subject to review and final approval by the LPSC.
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.  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.  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.  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.  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.  At its July 2010 B&E session, the LPSC granted ELL a $3.482 million increase in retail rates effective September 2010 to provide supplemental funding for the decommissioning trust maintained for the for the LPSC-jurisdictional portion of Waterford 3, in response to the NRC notification of a projected shortfall of decommissioning funding assurance.  Prior to that, ELL had $2.3 million in retail rates for decommissioning.
 



Appendix B:  Regulatory Summary Table (continued)
Company
Pending Cases/Events
Retail Regulation
   
Entergy
Louisiana
(continued)
Acadia Unit 2 Acquisition Recent Activity:  During September 2010, Staff and ELL / EGSL began discussions regarding a possible settlement in this matter.  ELL / EGSL requested that pre-hearing deadlines be extended to accommodate settlement discussions.  As part of their request, ELL / EGSL did not request any change in the current hearing dates of December 9-10 and 13, 2010.  All parties represented that they had no objection to the requested extension and on October 19, 2010, the LPSC modified the procedural schedule to extend the pre-hearing dates.  On September 30, 2010, the relevant Hart-Scott-Rodino waiting period expired without action.  With this clearance, the power purchase agreement (PPA) was replaced by the original tolling agreement effective October 1, 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.  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.  For the interim period during which federal reviews were pending, ELL entered into an interim PPA with Acadia Power Partners, LLC (APP), which agreement was intended to be replaced by the ITA once federal reviews were completed.  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.  The Hart-Scott-Rodino Antitrust Improvements Act filing was made in March 2010.  On April 9, 2010, the LPSC approved ELL and EGSL’s uncontested request concerning the limited-term ITA, and on July 28, the LPSC approved the PPA.  On June 1, 2010, deliveries commenced under the PPA (while regulatory approval was pending).  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.  Closing is expected to occur in early 2011.
 
Little Gypsy Repowering Recent Activity:  During the third quarter 2010, testimony was filed in the Little Gypsy proceeding.  The modified procedural schedule calls for hearings to begin in November 2010.  There currently is pending before the LPSC an appeal by the LPSC Staff of a decision by the ALJ relating to a dispute between the Staff and industrial intervenors relating to positions regarding the allocation of the project costs among customers.  The LPSC is expected to review this appeal at its November 10, 2010 B&E session.  In an effort to minimize any delay in the hearings due to this dispute, ELL requested a status conference, which was held on October 19, 2010. At the status conference, the ALJ determined that the hearings would begin on the date currently scheduled and that all issues other than cost allocation would be heard during these hearings. If the LPSC reaches a decision on the appeal at the November 10, 2010 B&E session, a status conference will be held on November 12, 2010, to determine the hearing schedule for the cost allocation issue.  The record from the original hearing will be held open until the conclusion of the hearing on cost allocation.
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.  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.  In May 2009, the LPSC unanimously accepted and subsequently issued an order finding that ELL’s recommendation 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.  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.  HB 1207, creating the Louisiana Electric Investment Recovery Securitization Act, was unanimously passed in the Louisiana legislature and signed by Governor Jindal on July 6, 2010.
   


Appendix B:  Regulatory Summary Table (continued)
Company
Pending Cases/Events
Retail Regulation
   
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:  None.
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) provided the opportunity to 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.  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.
   
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 September 10, 2010, recognizing that ENOI and the City Council of New Orleans’ (CCNO) Advisors were able to reach agreement on some but not all disputed issues, new rates were filed with the CCNO.  The new rates reflected an electric rate decrease of $16.504 million and a gas rate increase of $2.287 million effective with the first billing cycle of October 2010.  Any additional negotiated rate changes will go before the CCNO for approval prior to implementation.  On October 7, 2010, ENOI came to an Agreement in Principle with the CCNO’s Advisors that includes additional black box electric and gas rate changes to reflect a total decrease of $18 million for electric rates and no change to gas rates retroactive to the first billing cycle of October 2010.  In addition, ENOI will recognize a $3.0 million regulatory asset to be recovered over 36 months commencing January 1, 2011 outside the gas FRP deadband.  The agreement also calls for ENOI to withdraw its application to implement certain corrections to its purchased gas adjustment clause upon final approval of the settlement.  The CCNO is expected to consider the settlement at its October 21, 2010 meeting.
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 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.  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.
   
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:  On August 6, 2010, ETI filed a stipulation and settlement agreement with the PUCT.  Key elements of the settlement include a $68 million rate increase ($59 million for usage on and after August 15, 2010 and an additional $9 million for bills rendered on and after May 2, 2011, the first billing cycle of the month) and a 10.125% allowed return on equity (up from 10%). The settlement specified that River Bend decommissioning costs will be set at $2.019 million annually. In addition, the settlement stipulated to $464 million of net transmission cost to set the baseline investment and return assumptions necessary to make subsequent filings for recovery under a transmission rider.  No formula rate plan (Cost of Service Adjustment) or purchased power recovery riders were adopted.  Concurrently, the ALJ issued an interim order approving the implementation of the $59 million rate increase.  The settlement did not address the competitive generation service (CGS) tariff proposed by ETI, as required in state legislation initially enacted in 2005 and modified in 2009.  On October 4, 2010, the ALJ remanded the unanimous settlement to the PUCT and concurrently issued a Proposal for Decision (PFD) recommending that the CGS tariff be rejected due to the potential for a substantial shift in costs from a limited class of eligible and participating customers to remaining customers thus violating the basic principle of cost-causation.  In the PFD, the ALJ recognized that the law is clear that ETI be made whole for program costs and any loss of revenues from participating customers. The PFD and the settlement agreement will be considered at the November 10, 2010 PUCT open meeting.  Separately, ETI submitted a petition on September 17, 2010 to the PUCT to initiate a rulemaking for a proposed rule allowing for a purchased power capacity cost rider.  In the filing, ETI stated that other non-ERCOT utilities generally support a rule authorizing timely recovery of purchased power capacity costs outside a base rate case.
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
 
Appendix B:  Regulatory Summary Table (continued)
Company/ Proceeding
 
Pending Cases/Events
  Retail Regulation
   
Entergy
Texas
(continued)
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 CGS 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 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 Calculated Rate Base: $1.2 billion calculated for 9/30/10 monthly cost of service
   
System Agreement
 
 
Recent Activity: The Operating Companies continue to meet with the Commissioners, 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 E-RSC of the SPP RTO, MISO, and modified ICT alternatives.  An initial draft of the Successor Arrangements, in the form of a draft CODA, was provided to state regulators on September 16, 2010.  The intent of the draft arrangements is to allow each participating company to realize the operational benefits of a large, voluntary coordinated bulk power electric system, including energy savings associated with joint commitment and dispatch of a larger system and lower overall reserve margins, while seeking to address key concerns expressed about the historic litigation related to the current agreement.
On August 13, 2010, the FERC reaffirmed its prior decision that refunds were appropriate for a limited fifteen-month period (from 1995 to 1996) due to changes in the treatment of interruptible load in the allocation of costs among the Operating Companies under the System Agreement.  Requests for rehearing and clarification of the FERC’s August 13, 2010, order are currently pending before the FERC.  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.
The Operating Companies revised the 2010 bandwidth filing based on 2009 calendar year production costs on September 21, 2010 reflecting a payment of $41.6 million (up from $27.3 million) from EAI collectively to ELL and EMI.  The 2010 bandwidth filing has been set for hearing by the FERC.
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.
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.
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.  Hearings were held in the third quarter.  The parties are in the process of filing their post-hearing briefs.
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 MISO, potential Successor Arrangements and third party coordination agreements.  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.



Appendix B:  Regulatory Summary Table (continued)
Company/ Proceeding
 
Pending Cases/Events
  Wholesale Regulation
   
Independent Coordinator of Transmission
 
Authorized
ROE:  11.0% (z)
 
Last Filed
Rate Base:
$2.2 billion (aa)
 
Filed 5/10
based on 12/31/09 test year
 
 
Recent Activity:  On September 17, 2010, the Operating Companies filed a request for a one year interim extension of the ICT arrangement expiring November 17, 2010.  On October 13, 2010, the Utility Operating Companies amended their initial filing to extend the ICT arrangement (with certain modifications) to a maximum of two years from one year.  This will help provide sufficient time for analysis and implementation of other alternatives to the current structure.  The filing stated that, if approved by the E-RSC during its October 20-21, 2010 meeting, the companies will make a subsequent filing with the FERC to provide the E-RSC authority upon unanimous approval of all E-RSC members to (1) propose modifications to cost allocation methodology for transmission projects and (2) add transmission projects to the Construction Plan.
On September 30, 2010, CRA presented its CBA of the Entergy and Cleco regions joining the SPP RTO. The findings of the CBA indicate that the Entergy region (including entities beyond the Operating Companies) would realize anywhere from a net cost of $(438) million to a net benefit of $387 million, primarily depending upon transmission cost allocation issues.
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.  Following the November 17 filing, the Operating Companies also determined it was appropriate to evaluate the MISO as an additional alternative.  A critical factor in the Operating Companies’ proposal will be the opinion and recommendation of the E-RSC, formed in the Fall of 2009, which included 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 will compare the current ICT arrangement to joining the SPP RTO and MISO.
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 one of the RTOs is deemed the preferred alternative, it is anticipated that 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 MISO 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.
(z)    Applies to sales made under Entergy’s FERC-jurisdictional Open Access Transmission Tariff (OATT).
(aa)  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 E.

Appendix C-1:  GAAP and Non-GAAP Financial Performance Measures
Third Quarter 2010 vs. 2009
(see Appendix D for definitions of certain measures)
   
For 12 months ending September 30
2010
2009
  
Change
GAAP Measures
        
Return on average invested capital – as-reported
8.2%
7.1%
  
1.1%
Return on average common equity – as-reported
15.5%
13.2%
  
2.3%
Net margin – as-reported
11.7%
9.7%
  
2.0%
Cash flow interest coverage
8.0
5.5
  
2.5
Book value per share
$48.10
$44.91
  
$3.19
End of period shares outstanding (millions)
181.5
188.9
  
(7.4)
         
Non-GAAP Measures
        
Return on average invested capital – operational
8.7%
7.5%
  
1.2%
Return on average common equity – operational
16.6%
14.1%
  
2.5%
Net margin – operational
12.5%
10.3%
  
2.2%
         
As of September 30 ($ in millions)
2010
2009
  
Change
GAAP Measures
        
Cash and cash equivalents
1,931
1,131
  
800
Revolver capacity
2,216
1,647
  
569
Total debt
12,247
11,522
  
725
Securitization debt
940
301
  
639
Debt to capital ratio
57.5%
56.7%
  
0.8%
Off-balance sheet liabilities:
        
Debt of joint ventures – Entergy’s share
108
118
  
(10)
Leases – Entergy’s share
530
449
  
81
Total off-balance sheet liabilities
638
567
  
71
         
Non-GAAP Measures
        
Debt to capital ratio, excluding securitization debt
55.6%
56.1%
  
(0.5)%
Total gross liquidity
4,147
2,778
  
1,369
Net debt to net capital ratio, excluding securitization debt
50.9%
53.4%
  
(2.5%)
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
52.5%
54.8%
  
(2.3%)
         



Appendix C-2:  Historical Performance Measures
(see Appendix D for definitions of measures)
     
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
09YTD
10YTD
Financial
                    
   
EPS – as-reported ($)
0.89
1.20
1.14
2.32
1.64
1.12
1.65
2.62
4.66
5.38
   
Less – special items ($)
(0.10)
(0.09)
(0.09)
(0.08)
(0.11)
(0.21)
(0.06)
(0.14)
(0.26)
(0.40)
   
EPS – operational ($)
0.99
1.29
1.23
2.40
1.75
1.33
1.71
2.76
4.92
5.78
 
Trailing Twelve Months
                    
   
ROIC – as-reported (%)
8.1
7.6
7.5
7.1
7.7
7.6
8.1
8.2
7.1
8.2
   
ROIC – operational (%)
8.4
8.0
7.8
7.5
8.1
8.0
8.5
8.7
7.5
8.7
   
ROE – as-reported (%)
15.4
14.1
13.7
13.2
14.9
13.8
14.8
15.5
13.2
15.5
   
ROE – operational (%)
16.1
15.0
14.6
14.1
15.7
14.9
15.8
16.6
14.1
16.6
   
Cash flow interest coverage
6.5
6.5
6.7
5.5
6.1
6.3
6.6
8.0
5.5
8.0
   
Debt to capital ratio (%)
59.7
57.4
55.9
56.7
57.4
57.0
56.6
57.5
56.7
57.5
   
Debt to capital ratio, excluding securitization debt (%)
59.1
56.7
55.3
56.1
55.6
55.2
54.8
55.6
56.1
55.6
   
Net debt to net capital ratio, excluding securitization debt (%)
54.8
52.6
52.2
53.4
51.5
51.3
51.6
50.9
53.4
50.9
Utility
   
GWh billed
                    
   
Residential
6,992
7,893
7,100
11,213
7,421
9,645
7,705
12,365
26,206
29,715
   
Commercial & Gov’t
6,992
6,756
7,095
8,794
7,240
7,064
7,384
9,341
22,644
23,789
   
Industrial
8,626
8,139
8,790
9,473
9,235
8,733
9,862
10,276
26,402
28,871
   
Wholesale
1,240
1,387
1,313
1,164
998
1,317
971
1,063
3,864
3,351
   
O&M expense/MWh
$23.95
$18.51
$20.96
$15.77
$20.18
$17.29
$19.21
$16.41
$18.19
$17.54
   
Reliability
                    
   
SAIFI
1.9
1.8
1.7
1.7
1.8
1.7
1.8
1.8
1.7
1.8
   
SAIDI
216
208
194
203
210
213
207
198
203
198
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
$56.69
$63.84
$59.22
$61.70
$59.43
$58.72
$57.69
$61.41
$61.68
$59.27
   
Production cost/MWh (bb)
$22.77
$23.14
$24.30
$22.57
$23.20
$23.70
$24.40
$27.79
$23.28
$25.28
   
Non-fuel O&M expense/ purchased power per MWh (bb)
$23.06
$22.44
$25.33
$22.11
$23.60
$23.63
$25.49
$28.77
$23.18
$25.94
   
GWh billed
10,489
10,074
8,980
10,876
11,052
10,255
9,868
9,888
29,929
30,011
   
Capacity factor (%)
94
92
81
100
99
94
90
91
91
92
                         
 
(bb)  2009 and 2010 excludes the effect of the non-utility nuclear spin-off expenses special item at Entergy Nuclear.
 


D.  
  
D.  
Definitions

Appendix D 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 D:  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 D:  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 and the 2009 ice storm at Entergy Arkansas
   
Financial Measures – Non-GAAP
  
Operational earnings
As-reported Net Income adjusted to exclude the impact of special items
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
   



E.  
GAAP to Non-GAAP Reconciliations

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

Appendix E-1:  Reconciliation of GAAP to Non-GAAP Financial Measures – Return on Equity, Return on Invested Capital and Net Margin Metrics
($ in millions)
                
 
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
As-reported Net Income-rolling 12 months (A)
1,221
1,147
1,103
1,088
1,231
1,210
1,298
1,336
Preferred dividends
20
20
20
20
20
20
20
20
Tax effected interest expense
374
366
368
361
351
372
368
358
As-reported Net Income, rolling 12 months including preferred dividends and tax effected interest expense (B)
1,615
1,533
1,491
1,469
1,602
1,602
1,686
1,714
                 
Special items in prior quarters
(35)
(55)
(54)
(54)
(49)
(53)
(76)
(71)
                 
Special items in current quarter
                
Nuclear spin-off expenses
(20)
(17)
(17)
(15)
(21)
(40)
(10)
(25)
    Total special items (C)
(55)
(72)
(71)
(69)
(71)
(94)
(87)
(96)
                 
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
1,670
1,605
1,562
1,538
1,673
1,696
1,773
1,810
                 
Operational earnings, rolling 12 months (A-C)
1,276
1,219
1,174
1,157
1,302
1,304
1,385
1,432
                 
Average invested capital (D)
19,927
20,126
19,995
20,629
20,748
21,149
20,761
20,802
                 
Average common equity (E)
7,915
8,152
8,045
8,230
8,290
8,745
8,769
8,608
                 
Operating revenues (F)
13,094
13,018
12,275
11,248
10,746
10,716
11,058
11,453
                 
ROIC – as-reported % (B/D)
8.1
7.6
7.5
7.1
7.7
7.6
8.1
8.2
                 
ROIC – operational % ((B-C)/D)
8.4
8.0
7.8
7.5
8.1
8.0
8.5
8.7
                 
ROE – as-reported % (A/E)
15.4
14.1
13.7
13.2
14.9
13.8
14.8
15.5
                 
ROE – operational % ((A-C)/E)
16.1
15.0
14.6
14.1
15.7
14.9
15.8
16.6
                 
Net margin – as-reported % (A/F)
9.3
8.8
9.0
9.7
11.5
11.3
11.7
11.7
                 
Net margin – operational % ((A-C)/F)
9.7
9.4
9.6
10.3
12.1
12.2
12.5
12.5
                 



Appendix E-2:  Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
($ in millions)
                
 
4Q08
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
Gross debt (A)
12,279
12,034
11,510
11,522
12,014
12,152
11,853
12,247
Less securitization debt (B)
310
310
301
301
838
838
829
940
Gross debt, excluding securitization  debt (C)
11,969
11,724
11,209
11,221
11,176
11,314
11,024
11,307
Less cash and cash equivalents (D)
1,920
1,803
1,281
1,131
1,710
1,657
1,336
1,931
 Net debt, excluding securitization debt (E)
10,049
9,921
9,928
10,090
9,466
9,657
9,688
9,376
                 
Total capitalization (F)
20,557
20,975
20,588
20,315
20,939
21,322
20,935
21,290
Less securitization debt (B)
310
310
301
301
838
838
829
940
Total capitalization, excluding securitization debt (G)
20,247
20,665
20,287
20,014
20,101
20,484
20,106
20,350
Less cash and cash equivalents (D)
1,920
1,803
1,281
1,131
1,710
1,657
1,336
1,931
Net capital, excluding securitization debt (H)
18,327
18,862
19,006
18,883
18,391
18,827
18,770
18,419
                 
Debt to capital ratio % (A/F)
59.7
57.4
55.9
56.7
57.4
57.0
56.6
57.5
                 
Debt to capital ratio, excluding securitization debt % (C/G)
59.1
56.7
55.3
56.1
55.6
55.2
54.8
55.6
                 
Net debt to net capital ratio, excluding securitization debt % (E/H)
54.8
52.6
52.2
53.4
51.5
51.3
51.6
50.9
                 
Off-balance sheet liabilities (I)
574
573
569
567
646
644
641
638
                 
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
56.2
54.0
53.6
54.8
53.1
52.9
53.2
52.5
                 
Revolver capacity (J)
645
725
1,585
1,647
1,464
1,417
1,338
2,216
                 
Gross liquidity (D+J)
2,565
2,528
2,866
2,778
3,174
3,074
2,674
4,147
                 

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-Qs for the quarters ended March 31, 2010 and June 30, 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.


VII.  
Financial Statements

 


Entergy Corporation
  
   
Consolidating Balance Sheet
  
September 30, 2010
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
ASSETS
                        
                         
CURRENT ASSETS
                        
                         
 Cash and cash equivalents:
                        
    Cash
   $ 77,956     $ 1,319     $ 8,342     $ 87,617  
    Temporary cash investments
     977,462       320,752       545,088       1,843,302  
     Total cash and cash equivalents
     1,055,418       322,071       553,430       1,930,919  
Securitization recovery trust account
     36,280       -       -       36,280  
Notes receivable
     -       367,662       (367,662 )     -  
Accounts receivable:
                                
   Customer
     590,248       149,964       -       740,212  
   Allowance for doubtful accounts
     (32,793 )     -       (202 )     (32,995 )
   Associated companies
     19,932       17,293       (37,225 )     -  
   Other
     142,474       -       17,201       159,675  
   Accrued unbilled revenues
     349,950       -       363       350,313  
     Total accounts receivable
     1,069,811       167,257       (19,863 )     1,217,205  
Deferred fuel costs
     66,071       -       -       66,071  
Accumulated deferred income taxes
     2,563       340       1,605       4,508  
Fuel inventory - at average cost
     191,320       -       2,206       193,526  
Materials and supplies - at average cost
     538,831       311,268       2,093       852,192  
Deferred nuclear refueling outage costs
     85,483       135,013       -       220,496  
System agreement cost equalization
     25,976       -       -       25,976  
Prepayments and other
     80,726       275,225       149,168       505,119  
TOTAL
     3,152,479       1,578,836       320,977       5,052,292  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     1,147,272       1,330,589       (2,439,803 )     38,058  
Decommissioning trust funds
     1,431,356       1,990,270       -       3,421,626  
Non-utility property - at cost (less accumulated depreciation)
     160,594       5,554       87,142       253,290  
Other
     362,974       6,138       35,172       404,284  
TOTAL
     3,102,196       3,332,551       (2,317,489 )     4,117,258  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     32,771,834       3,759,384       362,406       36,893,624  
Property under capital lease
     793,241       -       -       793,241  
Natural gas
     320,654       -       440       321,094  
Construction work in progress
     1,165,006       473,872       4,702       1,643,580  
Nuclear fuel under capital lease
     -       -       -       -  
Nuclear fuel
     681,200       586,351       -       1,267,551  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     35,731,935       4,819,607       367,548       40,919,090  
Less - accumulated depreciation and amortization
     16,543,079       655,181       150,374       17,348,634  
PROPERTY, PLANT AND EQUIPMENT - NET
     19,188,856       4,164,426       217,174       23,570,456  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     592,355       -       -       592,355  
    Other regulatory assets
     3,688,785       -       -       3,688,785  
    Deferred fuel costs
     172,202       -       -       172,202  
Goodwill
     374,099       3,073       -       377,172  
Accumulated deferred income taxes
     16,338       -       58,365       74,703  
Other
     215,007       823,987       (4,179 )     1,034,815  
TOTAL
     5,058,786       827,060       54,186       5,940,032  
              -                  
TOTAL ASSETS
   $ 30,502,317     $ 9,902,873     $ (1,725,152 )   $ 38,680,038  
                                 
*Totals may not foot due to rounding.
                                

 
 

Entergy Corporation
  
   
Consolidating Balance Sheet
  
September 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
   $ 334,291     $ 28,492     $ 226,000     $ 588,783  
Notes payable:
                                
  Associated companies
     -       -       -       -  
  Other
     167,915       -       -       167,915  
Account payable:
                                
  Associated companies
     37,400       6,105       (43,505 )     -  
  Other
     715,661       271,227       22,306       1,009,194  
Customer deposits
     330,293       -       -       330,293  
Taxes accrued
     128,851       303,874       (432,725 )     -  
Accumulated deferred income taxes
     59,402       23,577       3,583       86,562  
Interest accrued
     176,365       4,371       8,316       189,052  
Deferred fuel costs
     93,257       -       -       93,257  
Obligations under capital leases
     3,352       -       -       3,352  
Pension and other postretirement liabilities
     36,374       5,591       -       41,965  
System agreement cost equalization
     25,931       -       -       25,931  
Other
     105,326       274,545       2,840       382,711  
TOTAL
     2,214,418       917,782       (213,185 )     2,919,015  
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     7,005,512       1,920,897       (780,373 )     8,146,036  
Accumulated deferred investment tax credits
     296,100       -       -       296,100  
Obligations under capital leases
     42,873       -       -       42,873  
Other regulatory liabilities
     555,240       -       -       555,240  
Decommissioning and retirement cost liabilities
     1,700,383       1,393,140       1,310       3,094,833  
Accumulated provisions
     381,535       2,403       4,594       388,532  
Pension and other postretirement liabilities
     1,648,846       462,839       -       2,111,685  
Long-term debt
     8,522,303       147,697       2,774,513       11,444,513  
Other
     724,522       275,929       (361,728 )     638,723  
TOTAL
     20,877,314       4,202,905       1,638,316       26,718,535  
                                 
Subsidiaries' preferred stock without sinking fund
     186,510       -       30,226       216,736  
                                 
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       541,945       2,408,513       5,367,091  
  Retained earnings
     2,796,816       3,262,167       2,552,098       8,611,081  
  Accumulated other comprehensive income (loss)
     (124,642 )     203,800       (6,592 )     72,566  
  Less - treasury stock, at cost (73,229,902 shares in 2010)
     120,000       -       5,201,534       5,321,534  
  Total common shareholders' equity
     7,130,075       4,782,186       (3,180,509 )     8,731,752  
Subsidiaries' preferred stock without sinking fund
     94,000       -       -       94,000  
TOTAL
     7,224,075       4,782,186       (3,180,509 )     8,825,752  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 30,502,317     $ 9,902,873     $ (1,725,152 )   $ 38,680,038  
                                 
*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
  
September 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
   $ (3,299 )   $ 132     $ 4,923     $ 1,756  
    Temporary cash investments
     (180,552 )     (71,336 )     471,500       219,612  
     Total cash and cash equivalents
     (183,851 )     (71,204 )     476,423       221,368  
Securitization recovery trust account
     23,182       -       -       23,182  
Notes receivable
     -       (764,361 )     764,361       -  
Accounts receivable:
                                
   Customer
     258,312       (71,792 )     -       186,520  
   Allowance for doubtful accounts
     (5,365 )     -       1       (5,364 )
   Associated companies
     (7,851 )     (11,647 )     19,498       -  
   Other
     7,167       -       205       7,372  
   Accrued unbilled revenues
     47,657       -       193       47,850  
     Total accounts receivable
     299,920       (83,439 )     19,897       236,378  
Deferred fuel costs
     (60,727 )     -       -       (60,727 )
Accumulated deferred income taxes
     2,563       340       1,605       4,508  
Fuel inventory - at average cost
     (3,506 )     (529 )     706       (3,329 )
Materials and supplies - at average cost
     12,288       14,136       66       26,490  
Deferred nuclear refueling outage costs
     (20,945 )     16,151       -       (4,794 )
System agreement cost equalization
     (44,024 )     -       -       (44,024 )
Prepayments and other
     12,320       (157,743 )     264,502       119,079  
TOTAL
     37,220       (1,046,649 )     1,527,560       518,131  
                                 
OTHER PROPERTY AND INVESTMENTS
                                
                                 
Investment in affiliates - at equity
     412,694       -       (414,216 )     (1,522 )
Decommissioning trust funds
     105,493       104,950       -       210,443  
Non-utility property - at cost (less accumulated depreciation)
     4,261       (484 )     1,849       5,626  
Other
     285,556       (1,592 )     47       284,011  
TOTAL
     808,004       102,874       (412,320 )     498,558  
                                 
PROPERTY, PLANT, AND EQUIPMENT
                                
                                 
Electric
     345,102       218,524       (13,774 )     549,852  
Property under capital lease
     10,145       -       -       10,145  
Natural gas
     6,837       -       1       6,838  
Construction work in progress
     30,812       62,349       3,100       96,261  
Nuclear fuel under capital lease
     (527,521 )     -       -       (527,521 )
Nuclear fuel
     461,883       65,841       -       527,724  
TOTAL PROPERTY, PLANT AND EQUIPMENT
     327,258       346,714       (10,673 )     663,299  
Less - accumulated depreciation and amortization
     392,316       93,483       (3,554 )     482,245  
PROPERTY, PLANT AND EQUIPMENT - NET
     (65,058 )     253,231       (7,119 )     181,054  
                                 
DEFERRED DEBITS AND OTHER ASSETS
                                
                                 
Regulatory assets:
                                
    Regulatory asset for income taxes - net
     (27,145 )     -       -       (27,145 )
    Other regulatory assets
     41,631       -       -       41,631  
    Deferred fuel costs
     -       -       -       -  
Goodwill
     -       -       -       -  
Accumulated deferred income taxes
     16,338       -       58,365       74,703  
Other
     (16,149 )     2,605       42,053       28,509  
TOTAL
     14,675       2,605       100,418       117,698  
                                 
TOTAL ASSETS
   $ 794,841     $ (687,939 )   $ 1,208,539     $ 1,315,441  
                                 
*Totals may not foot due to rounding.
                                


Entergy Corporation
  
   
Consolidating Balance Sheet
  
September 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
   $ (71,725 )   $ (2,449 )   $ (49,000 )   $ (123,174 )
Notes payable:
                                
  Associated companies
     (207,161 )     -       207,161       -  
  Other
     137,884       -       -       137,884  
Account payable:
                                
  Associated companies
     30,480       (1,438 )     (29,042 )     -  
  Other
     (43,225 )     40,108       14,083       10,966  
Customer deposits
     7,201       (250 )     -       6,951  
Taxes accrued
     116,109       303,874       (419,983 )     -  
Accumulated deferred income taxes
     18,277       23,577       (3,876 )     37,978  
Interest accrued
     (10,789 )     3,463       4,095       (3,231 )
Deferred fuel costs
     (126,382 )     -       -       (126,382 )
Obligations under capital leases
     (209,144 )     -       -       (209,144 )
Pension and other postretirement liabilities
     (13,538 )     472       -       (13,066 )
System agreement cost equalization
     (161,273 )     -       -       (161,273 )
Other
     56,683       111,217       (391 )     167,509  
TOTAL
     (476,603 )     478,574       (276,953 )     (274,982 )
                                 
NON-CURRENT LIABILITIES
                                
                                 
Accumulated deferred income taxes and taxes accrued
     498,538       (1,132,070 )     1,357,249       723,717  
Accumulated deferred investment tax credits
     (12,295 )     -       -       (12,295 )
Obligations under capital leases
     (311,360 )     -       -       (311,360 )
Other regulatory liabilities
     133,255       -       -       133,255  
Decommissioning and retirement cost liabilities
     81,539       73,690       65       155,294  
Accumulated provisions
     253,901       (6,687 )     3       247,217  
Pension and other postretirement liabilities
     (122,505 )     (6,849 )     -       (129,354 )
Long-term debt
     625,271       (8,859 )     122,363       738,775  
Other
     (25,502 )     (41,732 )     (5,377 )     (72,611 )
TOTAL
     1,120,842       (1,122,507 )     1,474,303       1,472,638  
                                 
Subsidiaries' preferred stock without sinking fund
     -       -       (607 )     (607 )
                                 
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
     -       (485,219 )     482,268       (2,951 )
  Retained earnings
     145,187       297,115       125,657       567,959  
  Accumulated other comprehensive income (loss)
     5,415       144,098       (1,762 )     147,751  
  Less - treasury stock, at cost
     -       -       594,367       594,367  
  Total common shareholders' equity
     150,602       (44,006 )     11,796       118,392  
Subsidiaries' preferred stock without sinking fund
     -       -       -       -  
TOTAL
     150,602       (44,006 )     11,796       118,392  
                                 
TOTAL LIABILITIES AND EQUITY
   $ 794,841     $ (687,939 )   $ 1,208,539     $ 1,315,441  
                                 
*Totals may not foot due to rounding.
                                
                                 



Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended September 30, 2010
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 2,639,464     $ -     $ (711 )   $ 2,638,752  
     Natural gas
     27,263       -       -       27,263  
     Competitive businesses
     -       618,811       47,349       666,161  
                         Total
     2,666,727       618,811       46,638       3,332,176  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     671,904       56,114       20,846       748,863  
          Purchased power
     474,238       4,457       5,999       484,694  
          Nuclear refueling outage expenses
     26,819       38,066       -       64,885  
          Other operation and maintenance
     515,613       281,984       11,090       808,688  
     Decommissioning
     26,277       27,081       22       53,380  
     Taxes other than income taxes
     112,902       24,468       847       138,217  
     Depreciation and amortization
     221,627       38,781       4,213       264,621  
     Other regulatory charges (credits) - net
     (1,814 )     -       -       (1,814 )
                         Total
     2,047,566       470,951       43,017       2,561,534  
                                 
OPERATING INCOME
     619,161       147,860       3,621       770,642  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     15,064       -       -       15,064  
     Interest and dividend income
     46,364       38,936       (46,388 )     38,911  
     Other than temporary impairment losses
     -       (206 )     -       (206 )
     Miscellaneous - net
     (7,017 )     (5,991 )     (1,741 )     (14,748 )
                          Total
     54,411       32,739       (48,129 )     39,021  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     122,909       (2,826 )     5,995       126,078  
     Other interest - net
     5,080       5,433       (516 )     9,997  
     Allowance for borrowed funds used during construction
     (8,949 )     -       -       (8,949 )
                         Total
     119,040       2,607       5,479       127,126  
                                 
INCOME BEFORE INCOME TAXES
     554,532       177,992       (49,987 )     682,537  
                                 
Income taxes
     216,591       44,129       (76,084 )     184,636  
                                 
CONSOLIDATED NET INCOME
     337,941       133,863       26,097       497,901  
                                 
Preferred dividend requirements of subsidiaries
     4,332       -       683       5,015  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 333,609     $ 133,863     $ 25,414     $ 492,886  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.79     $ 0.72     $ 0.14     $ 2.65  
   DILUTED
   $ 1.78     $ 0.71     $ 0.13     $ 2.62  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             185,962,431  
   DILUTED
                             187,777,172  
                                 
*Totals may not foot due to rounding.
                                
                                 

 


Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended September 30, 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 2,196,255     $ -     $ (794 )   $ 2,195,461  
     Natural gas
     24,030       -       -       24,030  
     Competitive businesses
     -       684,214       33,390       717,604  
                         Total
     2,220,285       684,214       32,596       2,937,095  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     484,173       58,560       16,396       559,129  
          Purchased power
     373,747       4,108       10,453       388,308  
          Nuclear refueling outage expenses
     26,217       35,224       -       61,441  
          Other operation and maintenance
     457,196       211,683       12,697       681,576  
     Decommissioning
     24,837       25,211       21       50,069  
     Taxes other than income taxes
     103,929       22,412       2,510       128,851  
     Depreciation and amortization
     240,844       36,049       3,748       280,641  
     Other regulatory charges (credits) - net
     (13,224 )     -       -       (13,224 )
                         Total
     1,697,719       393,247       45,825       2,136,791  
                                 
OPERATING INCOME
     522,566       290,967       (13,229 )     800,304  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     14,770       -       -       14,770  
     Interest and dividend income
     50,386       43,878       (29,534 )     64,730  
     Other than temporary impairment losses
     -       (457 )     -       (457 )
     Miscellaneous - net
     11,156       (4,859 )     (558 )     5,739  
                          Total
     76,312       38,562       (30,092 )     84,782  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     116,997       2,281       10,854       130,132  
     Other interest - net
     10,989       12,771       (1,135 )     22,625  
     Allowance for borrowed funds used during construction
     (8,252 )     -       -       (8,252 )
                         Total
     119,734       15,052       9,719       144,505  
                                 
INCOME BEFORE INCOME TAXES
     479,144       314,477       (53,040 )     740,581  
                                 
Income taxes
     180,055       114,045       (13,686 )     280,414  
                                 
CONSOLIDATED NET INCOME
     299,089       200,432       (39,354 )     460,167  
                                 
Preferred dividend requirements of subsidiaries
     4,332       -       666       4,998  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 294,757     $ 200,432     $ (40,020 )   $ 455,169  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.52     $ 1.04     $ (0.21 )   $ 2.35  
   DILUTED
   $ 1.50     $ 1.02     $ (0.20 )   $ 2.32  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             193,424,904  
   DILUTED
                             195,875,241  
                                 
*Totals may not foot due to rounding.
                                
                                 

 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Three Months Ended September 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 443,209     $ -     $ 83     $ 443,291  
     Natural gas
     3,233       -       -       3,233  
     Competitive businesses
     -       (65,403 )     13,959       (51,443 )
                         Total
     446,442       (65,403 )     14,042       395,081  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     187,731       (2,446 )     4,450       189,734  
          Purchased power
     100,491       349       (4,454 )     96,386  
          Nuclear refueling outage expenses
     602       2,842       -       3,444  
          Other operation and maintenance
     58,417       70,301       (1,607 )     127,112  
     Decommissioning
     1,440       1,870       1       3,311  
     Taxes other than income taxes
     8,973       2,056       (1,663 )     9,366  
     Depreciation and amortization
     (19,217 )     2,732       465       (16,020 )
     Other regulatory charges (credits )- net
     11,410       -       -       11,410  
                         Total
     349,847       77,704       (2,808 )     424,743  
                                 
OPERATING INCOME
     96,595       (143,107 )     16,850       (29,662 )
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     294       -       -       294  
     Interest and dividend income
     (4,022 )     (4,942 )     (16,854 )     (25,819 )
     Other than temporary impairment losses
     -       251       -       251  
     Miscellaneous - net
     (18,173 )     (1,132 )     (1,183 )     (20,487 )
                          Total
     (21,901 )     (5,823 )     (18,037 )     (45,761 )
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     5,912       (5,107 )     (4,859 )     (4,054 )
     Other interest - net
     (5,909 )     (7,338 )     619       (12,628 )
     Allowance for borrowed funds used during construction
     (697 )     -       -       (697 )
                         Total
     (694 )     (12,445 )     (4,240 )     (17,379 )
                                 
INCOME BEFORE INCOME TAXES
     75,388       (136,485 )     3,053       (58,044 )
                                 
Income taxes
     36,536       (69,916 )     (62,398 )     (95,778 )
                                 
CONSOLIDATED NET INCOME
     38,852       (66,569 )     65,451       37,734  
                                 
Preferred dividend requirements of subsidiaries
     -       -       17       17  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 38,852     $ (66,569 )   $ 65,434     $ 37,717  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.27     $ (0.32 )   $ 0.35     $ 0.30  
   DILUTED
   $ 0.28     $ (0.31 )   $ 0.33     $ 0.30  
                                 
                                 
*Totals may not foot due to rounding.
                                
                                 


 

Entergy Corporation
  
   
Consolidating Income Statement
  
Nine Months Ended September 30, 2010
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 6,862,237     $ -     $ (2,446 )   $ 6,859,791  
     Natural gas
     154,426       -       -       154,426  
     Competitive businesses
     -       1,813,438       126,818       1,940,256  
                         Total
     7,016,663       1,813,438       124,372       8,954,473  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     1,706,461       165,738       66,878       1,939,077  
          Purchased power
     1,349,379       10,057       16,619       1,376,055  
          Nuclear refueling outage expenses
     81,489       109,906       -       191,395  
          Other operation and maintenance
     1,421,740       763,402       26,240       2,211,382  
     Decommissioning
     77,542       79,816       65       157,423  
     Taxes other than income taxes
     322,956       73,204       4,437       400,597  
     Depreciation and amortization
     665,503       111,811       12,078       789,392  
     Other regulatory charges (credits) - net
     15,555       -       -       15,555  
                         Total
     5,640,625       1,313,934       126,317       7,080,876  
                                 
OPERATING INCOME
     1,376,038       499,504       (1,945 )     1,873,597  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     45,990       -       -       45,990  
     Interest and dividend income
     118,901       116,618       (112,395 )     123,124  
     Other than temporary impairment losses
     -       (1,255 )     -       (1,255 )
     Miscellaneous - net
     (12,019 )     (13,469 )     (6,562 )     (32,050 )
                          Total
     152,872       101,894       (118,957 )     135,809  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     369,921       34,027       16,366       420,314  
     Other interest - net
     27,570       17,964       (2,394 )     43,140  
     Allowance for borrowed funds used during construction
     (27,274 )     -       -       (27,274 )
                         Total
     370,217       51,991       13,972       436,180  
                                 
INCOME BEFORE INCOME TAXES
     1,158,693       549,407       (134,874 )     1,573,226  
                                 
Income taxes
     447,608       201,818       (113,199 )     536,227  
                                 
CONSOLIDATED NET INCOME
     711,085       347,589       (21,675 )     1,036,999  
                                 
Preferred dividend requirements of subsidiaries
     12,999       -       2,049       15,048  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 698,086     $ 347,589     $ (23,724 )   $ 1,021,951  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 3.72     $ 1.85     $ (0.13 )   $ 5.44  
   DILUTED
   $ 3.68     $ 1.83     $ (0.13 )   $ 5.38  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             187,968,582  
   DILUTED
                             189,914,439  
                                 
*Totals may not foot due to rounding.
                                
                                 

 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Nine Months Ended September 30, 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 6,143,408     $ -     $ (2,585 )   $ 6,140,823  
     Natural gas
     126,914       -       -       126,914  
     Competitive businesses
     -       1,885,330       93,929       1,979,259  
                         Total
     6,270,322       1,885,330       91,344       8,246,996  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     1,721,163       157,280       49,249       1,927,692  
          Purchased power
     1,002,645       11,763       20,075       1,034,483  
          Nuclear refueling outage expenses
     77,363       101,091       -       178,454  
          Other operation and maintenance
     1,361,683       615,246       44,533       2,021,462  
     Decommissioning
     74,411       73,647       61       148,119  
     Taxes other than income taxes
     307,660       72,282       5,707       385,649  
     Depreciation and amortization
     683,123       104,713       11,347       799,183  
     Other regulatory charges (credits) - net
     (29,371 )     -       -       (29,371 )
                         Total
     5,198,677       1,136,022       130,972       6,465,671  
                                 
OPERATING INCOME
     1,071,645       749,308       (39,628 )     1,781,325  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     47,499       -       -       47,499  
     Interest and dividend income
     141,915       108,935       (80,843 )     170,007  
     Other than temporary impairment losses
     -       (85,396 )     -       (85,396 )
     Miscellaneous - net
     2,694       (13,066 )     (10,538 )     (20,910 )
                          Total
     192,108       10,473       (91,381 )     111,200  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     338,674       6,639       37,942       383,255  
     Other interest - net
     26,775       39,537       3,094       69,406  
     Allowance for borrowed funds used during construction
     (26,547 )     -       -       (26,547 )
                         Total
     338,902       46,176       41,036       426,114  
                                 
INCOME BEFORE INCOME TAXES
     924,851       713,605       (172,045 )     1,466,411  
                                 
Income taxes
     358,217       252,081       (76,197 )     534,101  
                                 
CONSOLIDATED NET INCOME
     566,634       461,524       (95,848 )     932,310  
                                 
Preferred dividend requirements of subsidiaries
     12,997       -       1,996       14,993  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 553,637     $ 461,524     $ (97,844 )   $ 917,317  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 2.85     $ 2.38     $ (0.50 )   $ 4.73  
   DILUTED
   $ 2.80     $ 2.34     $ (0.48 )   $ 4.66  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             194,044,214  
   DILUTED
                             197,382,562  
                                 
*Totals may not foot due to rounding.
                                
                                 

 
 


Entergy Corporation
  
   
Consolidating Income Statement
  
Nine Months Ended September 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 718,829     $ -     $ 139     $ 718,968  
     Natural gas
     27,512       -       -       27,512  
     Competitive businesses
     -       (71,892 )     32,889       (39,003 )
                         Total
     746,341       (71,892 )     33,028       707,477  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     (14,702 )     8,458       17,629       11,385  
          Purchased power
     346,734       (1,706 )     (3,456 )     341,572  
          Nuclear refueling outage expenses
     4,126       8,815       -       12,941  
          Other operation and maintenance
     60,057       148,156       (18,293 )     189,920  
     Decommissioning
     3,131       6,169       4       9,304  
     Taxes other than income taxes
     15,296       922       (1,270 )     14,948  
     Depreciation and amortization
     (17,620 )     7,098       731       (9,791 )
     Other regulatory charges (credits )- net
     44,926       -       -       44,926  
                         Total
     441,948       177,912       (4,655 )     615,205  
                                 
OPERATING INCOME
     304,393       (249,804 )     37,683       92,272  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     (1,509 )     -       -       (1,509 )
     Interest and dividend income
     (23,014 )     7,683       (31,552 )     (46,883 )
     Other than temporary impairment losses
     -       84,141       -       84,141  
     Miscellaneous - net
     (14,713 )     (403 )     3,976       (11,140 )
                          Total
     (39,236 )     91,421       (27,576 )     24,609  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     31,247       27,388       (21,576 )     37,059  
     Other interest - net
     795       (21,573 )     (5,488 )     (26,266 )
     Allowance for borrowed funds used during construction
     (727 )     -       -       (727 )
                         Total
     31,315       5,815       (27,064 )     10,066  
                                 
INCOME BEFORE INCOME TAXES
     233,842       (164,198 )     37,171       106,815  
                                 
Income taxes
     89,391       (50,263 )     (37,002 )     2,126  
                                 
CONSOLIDATED NET INCOME
     144,451       (113,935 )     74,173       104,689  
                                 
Preferred dividend requirements of subsidiaries
     2       -       53       55  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 144,449     $ (113,935 )   $ 74,120     $ 104,634  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 0.87     $ (0.53 )   $ 0.37     $ 0.71  
   DILUTED
   $ 0.88     $ (0.51 )   $ 0.35     $ 0.72  
                                 
                                 
*Totals may not foot due to rounding.
                                
                                 
                                 

 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended September 30, 2010
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 8,601,969     $ -     $ (2,986 )   $ 8,598,983  
     Natural gas
     199,725       -       -       199,725  
     Competitive businesses
     -       2,483,362       171,057       2,654,419  
                         Total
     8,801,694       2,483,362       168,071       11,453,127  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     2,012,192       224,479       84,545       2,321,216  
          Purchased power
     1,703,152       13,934       19,690       1,736,776  
          Nuclear refueling outage expenses
     109,142       145,108       -       254,250  
          Other operation and maintenance
     1,896,564       997,077       47,089       2,940,730  
     Decommissioning
     102,815       105,467       86       208,368  
     Taxes other than income taxes
     417,795       96,988       4,025       518,808  
     Depreciation and amortization
     908,619       148,546       15,819       1,072,984  
     Other regulatory charges (credits) - net
     23,198       -       -       23,198  
                         Total
     7,173,477       1,731,599       171,254       9,076,330  
                                 
OPERATING INCOME
     1,628,217       751,763       (3,183 )     2,376,797  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     58,036       -       -       58,036  
     Interest and dividend income
     157,491       177,541       (145,462 )     189,570  
     Other than temporary impairment losses
     -       (1,752 )     -       (1,752 )
     Miscellaneous - net
     (18,795 )     (19,765 )     (12,975 )     (51,535 )
                          Total
     196,732       156,024       (158,437 )     194,319  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     494,735       36,654       26,387       557,776  
     Other interest - net
     32,748       25,045       (1,097 )     56,696  
     Allowance for borrowed funds used during construction
     (33,961 )     -       -       (33,961 )
                         Total
     493,522       61,699       25,290       580,511  
                                 
INCOME BEFORE INCOME TAXES
     1,331,427       846,088       (186,910 )     1,990,605  
                                 
Income taxes
     478,071       329,003       (172,208 )     634,866  
                                 
CONSOLIDATED NET INCOME
     853,356       517,085       (14,702 )     1,355,739  
                                 
Preferred dividend requirements of subsidiaries
     17,331       -       2,682       20,013  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 836,025     $ 517,085     $ (17,384 )   $ 1,335,726  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 4.44     $ 2.75     $ (0.09 )   $ 7.10  
   DILUTED
   $ 4.39     $ 2.72     $ (0.09 )   $ 7.02  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             188,227,792  
   DILUTED
                             190,257,734  
                                 
*Totals may not foot due to rounding.
                                
                                 

 
 

Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended September 30, 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 8,438,114     $ -     $ (3,582 )   $ 8,434,532  
     Natural gas
     183,409       -       -       183,409  
     Competitive businesses
     -       2,499,061       130,861       2,629,922  
                         Total
     8,621,523       2,499,061       127,279       11,247,863  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     2,685,910       211,538       70,511       2,967,959  
          Purchased power
     1,355,340       14,811       22,564       1,392,715  
          Nuclear refueling outage expenses
     100,985       134,051       -       235,036  
          Other operation and maintenance
     1,909,287       821,077       75,293       2,805,657  
     Decommissioning
     99,008       98,113       80       197,201  
     Taxes other than income taxes
     404,304       96,384       6,581       507,269  
     Depreciation and amortization
     919,932       138,098       15,395       1,073,425  
     Other regulatory charges (credits) - net
     (69,458 )     -       -       (69,458 )
                         Total
     7,405,308       1,514,072       190,424       9,109,804  
                                 
OPERATING INCOME
     1,216,215       984,989       (63,145 )     2,138,059  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     63,239       -       -       63,239  
     Interest and dividend income
     183,689       141,761       (100,844 )     224,606  
     Other than temporary impairment losses
     -       (99,859 )     -       (99,859 )
     Miscellaneous - net
     (8,552 )     (12,665 )     (18,664 )     (39,881 )
                          Total
     238,376       29,237       (119,508 )     148,105  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     449,547       6,590       56,223       512,360  
     Other interest - net
     39,293       50,709       18,897       108,899  
     Allowance for borrowed funds used during construction
     (35,821 )     -       -       (35,821 )
                         Total
     453,019       57,299       75,120       585,438  
                                 
INCOME BEFORE INCOME TAXES
     1,001,572       956,927       (257,773 )     1,700,726  
                                 
Income taxes
     377,442       268,760       (53,358 )     592,844  
                                 
CONSOLIDATED NET INCOME
     624,130       688,167       (204,415 )     1,107,882  
                                 
Preferred dividend requirements of subsidiaries
     17,329       -       2,662       19,991  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 606,801     $ 688,167     $ (207,077 )   $ 1,087,891  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 3.15     $ 3.57     $ (1.08 )   $ 5.64  
   DILUTED
   $ 3.07     $ 3.48     $ (1.00 )   $ 5.55  
                                 
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
                                
   BASIC
                             192,868,552  
   DILUTED
                             197,717,203  
                                 
*Totals may not foot due to rounding.
                                
                                 



Entergy Corporation
  
   
Consolidating Income Statement
  
Twelve Months Ended September 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                         
   
U.S. Utilities
    
Entergy Nuclear
    
Parent & Other
    
Consolidated
  
                         
OPERATING REVENUES
                        
     Electric
   $ 163,855     $ -     $ 596     $ 164,451  
     Natural gas
     16,316       -       -       16,316  
     Competitive businesses
     -       (15,699 )     40,196       24,497  
                         Total
     180,171       (15,699 )     40,792       205,264  
                                 
OPERATING EXPENSES
                                
     Operating and Maintenance:
                                
          Fuel, fuel related expenses, and gas purchased for resale
     (673,718 )     12,941       14,034       (646,743 )
          Purchased power
     347,812       (877 )     (2,874 )     344,061  
          Nuclear refueling outage expenses
     8,157       11,057       -       19,214  
          Other operation and maintenance
     (12,723 )     176,000       (28,204 )     135,073  
     Decommissioning
     3,807       7,354       6       11,167  
     Taxes other than income taxes
     13,491       604       (2,556 )     11,539  
     Depreciation and amortization
     (11,313 )     10,448       424       (441 )
     Other regulatory charges (credits )- net
     92,656       -       -       92,656  
                         Total
     (231,831 )     217,527       (19,170 )     (33,474 )
                                 
OPERATING INCOME
     412,002       (233,226 )     59,962       238,738  
                                 
OTHER INCOME (DEDUCTIONS)
                                
     Allowance for equity funds used during construction
     (5,203 )     -       -       (5,203 )
     Interest and dividend income
     (26,198 )     35,780       (44,618 )     (35,036 )
     Other than temporary impairment losses
     -       98,107       -       98,107  
     Miscellaneous - net
     (10,243 )     (7,100 )     5,689       (11,654 )
                          Total
     (41,644 )     126,787       (38,929 )     46,214  
                                 
INTEREST AND OTHER CHARGES
                                
     Interest on long-term debt
     45,188       30,064       (29,836 )     45,416  
     Other interest - net
     (6,545 )     (25,664 )     (19,994 )     (52,203 )
     Allowance for borrowed funds used during construction
     1,860       -       -       1,860  
                         Total
     40,503       4,400       (49,830 )     (4,927 )
                                 
INCOME BEFORE INCOME TAXES
     329,855       (110,839 )     70,863       289,879  
                                 
Income taxes
     100,629       60,243       (118,850 )     42,022  
                                 
CONSOLIDATED NET INCOME
     229,226       (171,082 )     189,713       247,857  
                                 
Preferred dividend requirements of subsidiaries
     1       -       20       22  
                                 
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
   $ 229,225     $ (171,082 )   $ 189,693     $ 247,835  
                                 
EARNINGS PER AVERAGE COMMON SHARE:
                                
   BASIC
   $ 1.29     $ (0.82 )   $ 0.99     $ 1.46  
   DILUTED
   $ 1.32     $ (0.76 )   $ 0.91     $ 1.47  
                                 
                                 
*Totals may not foot due to rounding.
                                
                                 
                                 

 

Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Three Months Ended September 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2010
    
2009
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 497,901     $ 460,167     $ 37,734  
Adjustments to reconcile consolidated net income to net cash flow
                        
provided by operating activities:
                        
  Reserve for regulatory adjustments
     875       550       325  
  Other regulatory charges (credits) - net
     (1,814 )     (13,224 )     11,410  
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     427,758       378,910       48,848  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     181,718       263,347       (81,629 )
  Changes in working capital:
                        
     Receivables
     (65,881 )     12,968       (78,849 )
     Fuel inventory
     (1,674 )     13,793       (15,467 )
     Accounts payable
     21,254       (131,409 )     152,663  
     Taxes accrued
     -       41,738       (41,738 )
     Interest accrued
     17,833       24,867       (7,034 )
     Deferred fuel
     (63,585 )     (69,951 )     6,366  
     Other working capital accounts
     (366 )     39,421       (39,787 )
  Provision for estimated losses and reserves
     289,180       8,316       280,864  
  Changes in other regulatory assets
     505,663       123,030       382,633  
  Changes in pensions and other postretirement liabilities
     (68,233 )     (7,753 )     (60,480 )
  Other
     (43,374 )     (151,788 )     108,414  
Net cash flow provided by operating activities
     1,697,255       992,982       704,273  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (492,126 )     (410,784 )     (81,342 )
Allowance for equity funds used during construction
     15,064       14,770       294  
Nuclear fuel purchases
     (96,951 )     (142,153 )     45,202  
Proceeds from sale/leaseback of nuclear fuel
     -       176,496       (176,496 )
Proceeds from sale of assets and businesses
     -       30,401       (30,401 )
Insurance proceeds received for property damages
     7,894       32,914       (25,020 )
Changes in transition charge account
     (654 )     (11,321 )     10,667  
Decrease (increase) in other investments
     (229,605 )     7,192       (236,797 )
Proceeds from nuclear decommissioning trust fund sales
     486,621       451,164       35,457  
Investment in nuclear decommissioning trust funds
     (512,086 )     (476,859 )     (35,227 )
Net cash flow used in investing activities
     (821,843 )     (328,180 )     (493,663 )
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     1,746,435       (1,807 )     1,748,242  
    Common stock and treasury stock
     37,047       14,524       22,523  
  Retirement of long-term debt
     (1,339,155 )     (61,942 )     (1,277,213 )
  Repurchase of common stock
     (527,875 )     (613,125 )     85,250  
  Redemption of preferred stock
     -       (1,847 )     1,847  
  Changes in credit line borrowings - net
     (36,055 )     -       (36,055 )
  Dividends paid:
                        
     Common stock
     (154,887 )     (146,019 )     (8,868 )
     Preferred stock
     (5,015 )     (4,998 )     (17 )
Net cash flow used in financing activities
     (279,505 )     (815,214 )     535,709  
                         
Effect of exchange rates on cash and cash equivalents
     (512 )     285       (797 )
                         
Net increase (decrease) in cash and cash equivalents
     595,395       (150,127 )     745,522  
                         
Cash and cash equivalents at beginning of period
     1,335,524       1,280,907       54,617  
                         
Cash and cash equivalents at end of period
   $ 1,930,919     $ 1,130,780     $ 800,139  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 117,150     $ 121,159     $ (4,009 )
     Income taxes
   $ 6,910     $ 22,054     $ (15,144 )
                         


Entergy Corporation
  
   
Consolidated Cash Flow Statement
  
Nine Months Ended September 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2010
    
2009
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 1,036,999     $ 932,310     $ 104,689  
Adjustments to reconcile consolidated net income to net cash flow
                        
provided by operating activities:
                        
  Reserve for regulatory adjustments
     360       (1,080 )     1,440  
  Other regulatory charges (credits) - net
     15,555       (29,371 )     44,926  
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     1,259,543       1,076,115       183,428  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     524,359       512,795       11,564  
  Changes in working capital:
                        
     Receivables
     (243,326 )     14,856       (258,182 )
     Fuel inventory
     3,328       9,830       (6,502 )
     Accounts payable
     44,348       (189,586 )     233,934  
     Taxes accrued
     -       46,931       (46,931 )
     Interest accrued
     (10,982 )     (12,176 )     1,194  
     Deferred fuel
     (65,655 )     196,111       (261,766 )
     Other working capital accounts
     (117,086 )     (117,671 )     585  
  Provision for estimated losses and reserves
     258,962       (10,326 )     269,288  
  Changes in other regulatory assets
     482,960       (332,547 )     815,507  
  Changes in pensions and other postretirement liabilities
     (142,420 )     (52,714 )     (89,706 )
  Other
     118,144       (34,146 )     152,290  
Net cash flow provided by operating activities
     3,165,089       2,009,331       1,155,758  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (1,410,708 )     (1,342,840 )     (67,868 )
Allowance for equity funds used during construction
     45,990       47,499       (1,509 )
Nuclear fuel purchases
     (315,780 )     (291,721 )     (24,059 )
Proceeds from sale/leaseback of nuclear fuel
     -       197,706       (197,706 )
Proceeds from sale of assets and businesses
     9,675       39,054       (29,379 )
Insurance proceeds received for property damages
     7,894       32,914       (25,020 )
Changes in transition charge account
     (23,182 )     (8,359 )     (14,823 )
NYPA value sharing payment
     (72,000 )     (72,000 )     -  
Decrease (increase) in other investments
     (167,280 )     24,305       (191,585 )
Proceeds from nuclear decommissioning trust fund sales
     1,974,008       1,733,370       240,638  
Investment in nuclear decommissioning trust funds
     (2,043,361 )     (1,807,589 )     (235,772 )
Net cash flow used in investing activities
     (1,994,744 )     (1,447,661 )     (547,083 )
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     2,272,224       781,497       1,490,727  
    Common stock and treasury stock
     45,763       17,215       28,548  
  Retirement of long-term debt
     (2,113,927 )     (1,084,732 )     (1,029,195 )
  Repurchase of common stock
     (665,624 )     (613,125 )     (52,499 )
  Redemption of preferred stock
     -       (1,847 )     1,847  
  Changes in credit line borrowings - net
     (18,932 )     -       (18,932 )
  Dividends paid:
                        
     Common stock
     (453,683 )     (435,178 )     (18,505 )
     Preferred stock
     (15,048 )     (14,993 )     (55 )
Net cash flow used in financing activities
     (949,227 )     (1,351,163 )     401,936  
                         
Effect of exchange rates on cash and cash equivalents
     250       (218 )     468  
                         
Net increase (decrease) in cash and cash equivalents
     221,368       (789,711 )     1,011,079  
                         
Cash and cash equivalents at beginning of period
     1,709,551       1,920,491       (210,940 )
                         
Cash and cash equivalents at end of period
   $ 1,930,919     $ 1,130,780     $ 800,139  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 426,461     $ 442,345     $ (15,884 )
     Income taxes
   $ 32,964     $ 18,915     $ 14,049  
                         
   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 September 30, 2010 vs. 2009
  
(Dollars in thousands)
  
(Unaudited)
  
                   
   
2010
    
2009
    
Variance
  
                   
OPERATING ACTIVITIES
                  
Consolidated net income
   $ 1,355,739     $ 1,107,882     $ 247,857  
Adjustments to reconcile consolidated net income to net cash flow
                        
provided by operating activities:
                        
  Reserve for regulatory adjustments
     932       (7,504 )     8,436  
  Other regulatory charges (credits) - net
     23,198       (69,458 )     92,656  
  Depreciation, amortization, and decommissioning, including nuclear fuel amortization
     1,642,289       1,443,682       198,607  
  Deferred income taxes, investment tax credits, and non-current taxes accrued
     876,248       285,039       591,209  
  Changes in working capital:
                        
     Receivables
     (141,738 )     358,858       (500,596 )
     Fuel inventory
     12,789       22,150       (9,361 )
     Accounts payable
     219,683       (339,476 )     559,159  
     Taxes accrued
     (122,141 )     122,141       (244,282 )
     Interest accrued
     6,168       (4,676 )     10,844  
     Deferred fuel
     (189,452 )     553,229       (742,681 )
     Other working capital accounts
     (227,625 )     (101,626 )     (125,999 )
  Provision for estimated losses and reserves
     257,258       (228,698 )     485,956  
  Changes in other regulatory assets
     400,350       (1,598,383 )     1,998,733  
  Changes in pensions and other postretirement liabilities
     (17,917 )     997,125       (1,015,042 )
  Other
     (6,865 )     100,560       (107,425 )
Net cash flow provided by operating activities
     4,088,916       2,640,845       1,448,071  
                         
  INVESTING ACTIVITIES
                        
Construction/capital expenditures
     (1,999,113 )     (2,099,438 )     100,325  
Allowance for equity funds used during construction
     58,036       63,239       (5,203 )
Nuclear fuel purchases
     (549,533 )     (388,066 )     (161,467 )
Proceeds from sale/leaseback of nuclear fuel
     87,291       244,356       (157,065 )
Proceeds from sale of assets and businesses
     10,175       39,054       (28,879 )
Insurance proceeds received for property damages
     28,740       32,908       (4,168 )
Changes in transition charge account
     (15,859 )     1,003       (16,862 )
NYPA value sharing payment
     (72,000 )     (72,000 )     -  
Decrease (increase) in other investments
     (97,431 )     179,449       (276,880 )
Proceeds from nuclear decommissioning trust fund sales
     2,811,161       2,156,887       654,274  
Investment in nuclear decommissioning trust funds
     (2,902,944 )     (2,252,482 )     (650,462 )
Net cash flow used in investing activities
     (2,641,477 )     (2,095,090 )     (546,387 )
                         
FINANCING ACTIVITIES
                        
  Proceeds from the issuance of:
                        
    Long-term debt
     3,494,196       805,008       2,689,188  
    Common stock and treasury stock
     56,746       16,149       40,597  
  Retirement of long-term debt
     (2,872,364 )     (1,567,420 )     (1,304,944 )
  Repurchase of common stock
     (665,624 )     (657,397 )     (8,227 )
  Redemption of preferred stock
     -       (1,847 )     1,847  
  Changes in credit line borrowings - net
     (43,932 )     30,000       (73,932 )
  Dividends paid:
                        
     Common stock
     (595,461 )     (577,191 )     (18,270 )
     Preferred stock
     (20,013 )     (19,990 )     (23 )
Net cash flow used in financing activities
     (646,452 )     (1,972,688 )     1,326,236  
                         
Effect of exchange rates on cash and cash equivalents
     (848 )     1,825       (2,673 )
                         
Net increase (decrease) in cash and cash equivalents
     800,139       (1,425,108 )     2,225,247  
                         
Cash and cash equivalents at beginning of period
     1,130,780       2,555,888       (1,425,108 )
                         
Cash and cash equivalents at end of period
   $ 1,930,919     $ 1,130,780     $ 800,139  
                         
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
                        
  Cash paid (received) during the period for:
                        
     Interest - net of amount capitalized
   $ 552,533     $ 598,842     $ (46,309 )
     Income taxes
   $ 57,106     $ 28,196     $ 28,910  
                         
   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 )