Commission
File Number
|
Registrant, State of Incorporation,
Address and Telephone Number
|
I.R.S. Employer
Identification No.
|
1-11299
|
ENTERGY CORPORATION
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 576-4000
|
72-1229752
|
Exhibit No.
|
Description
|
99.1
|
Release, dated April 26, 2012, issued by Entergy Corporation.
|
99.2
|
Release, dated April 26, 2012, issued by Entergy Corporation.
|
99.3
|
Statement on Uses and Usefulness of Non-GAAP Information
|
For further information:
Paula Waters, VP, Investor Relations
Phone 504/576-4380
pwater1@entergy.com
|
Table 1: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
|
|||
First Quarter 2012 vs. 2011
|
|||
(Per share in U.S. $)
|
|||
First Quarter
|
|||
2012
|
2011
|
Change
|
|
As-Reported Earnings
|
(0.86)
|
1.38
|
(2.24)
|
Less Special Items
|
(1.30)
|
-
|
(1.30)
|
Operational Earnings
|
0.44
|
1.38
|
(0.94)
|
Weather Impact
|
(0.18)
|
0.10
|
(0.28)
|
·
|
Utility results were lower due primarily to higher income tax expense associated with the write off of a regulatory asset, lower net revenue and higher non-fuel operation and maintenance expense.
|
·
|
Entergy Wholesale Commodities earnings decreased due to lower net revenue and higher non-fuel operation and maintenance expense.
|
·
|
Parent & Other results declined due to several individually insignificant items.
|
·
|
The U.S. Court of Appeals for the Federal Circuit issued its decision on the appeal of Indian Point 1 and 2’s damages claim for breach of the spent fuel disposal contract. Assuming no more appeals, Entergy Wholesale Commodities could receive funds within the next several months.
|
·
|
Entergy successfully executed $4.15 billion of credit facilities for the parent company ($3.5 billion) and four of the Utility operating companies.
|
·
|
Entergy Vermont Yankee was named one of the Best Places to Work in Vermont for a third year.
|
·
|
Edison Electric Institute honored Entergy with Emergency Recovery and Emergency Assistance awards. This is the 14th consecutive year for Entergy to receive an EEI storm restoration award.
|
I.
|
Consolidated Results
|
Table 2: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
|||
(Per share in U.S. $)
|
|||
First Quarter
|
|||
2012
|
2011
|
Change
|
|
As-Reported
|
|||
Utility
|
0.35
|
0.91
|
(0.56)
|
Entergy Wholesale Commodities
|
(0.95)
|
0.68
|
(1.63)
|
Parent & Other
|
(0.26)
|
(0.21)
|
(0.05)
|
Consolidated As-Reported Earnings
|
(0.86)
|
1.38
|
(2.24)
|
Less Special Items
|
|||
Utility
|
(0.03)
|
-
|
(0.03)
|
Entergy Wholesale Commodities
|
(1.26)
|
-
|
(1.26)
|
Parent & Other
|
(0.01)
|
-
|
(0.01)
|
Consolidated Special Items
|
(1.30)
|
-
|
(1.30)
|
Operational
|
|||
Utility
|
0.38
|
0.91
|
(0.53)
|
Entergy Wholesale Commodities
|
0.31
|
0.68
|
(0.37)
|
Parent & Other
|
(0.25)
|
(0.21)
|
(0.04)
|
Consolidated Operational Earnings
|
0.44
|
1.38
|
(0.94)
|
Weather Impact
|
(0.18)
|
0.10
|
(0.28)
|
·
|
Decrease in pension contributions, and
|
·
|
Higher deferred fuel cost collections.
|
Table 3: Consolidated Net Cash Flow Provided by Operating Activities
|
||||
First Quarter 2012 vs. 2011
|
||||
(U.S. $ in millions)
|
||||
First Quarter
|
||||
2012
|
2011
|
Change
|
||
Utility
|
483
|
133
|
350
|
|
Entergy Wholesale Commodities
|
169
|
208
|
(39)
|
|
Parent & Other
|
(51)
|
(18)
|
(33)
|
|
Total Net Cash Flow Provided by Operating Activities
|
601
|
323
|
278
|
|
II.
|
Utility
|
·
|
Residential sales in first quarter 2012, on a weather-adjusted basis, increased 2.6 percent compared to first quarter 2011.
|
·
|
Commercial and governmental sales, on a weather-adjusted basis, increased 2.4 percent quarter over quarter.
|
·
|
Industrial sales in the first quarter increased 4.6 percent compared to the same quarter of 2011.
|
Table 4: Utility Operational Performance Measures (see Appendix F for definitions of measures)
|
||||
First Quarter 2012 vs. 2011
|
||||
First Quarter
|
||||
2012
|
2011
|
% Change
|
% Weather Adjusted
|
|
GWh billed
|
||||
Residential
|
7,760
|
9,042
|
(14.2)%
|
2.6%
|
Commercial and governmental
|
6,992
|
7,032
|
(0.6)%
|
2.4%
|
Industrial
|
9,958
|
9,516
|
4.6%
|
4.6%
|
Total Retail Sales
|
24,710
|
25,590
|
(3.4)%
|
3.3%
|
Wholesale
|
732
|
947
|
(22.7)%
|
|
Total Sales
|
25,442
|
26,537
|
(4.1)%
|
|
O&M expense per MWh (a)
|
$20.08
|
$17.89
|
12.2%
|
|
Number of retail customers
|
||||
Residential
|
2,373,715
|
2,362,024
|
0.5%
|
|
Commercial and governmental
|
354,675
|
351,721
|
0.8%
|
|
Industrial
|
38,314
|
38,887
|
(1.5)%
|
|
(a)
|
First quarter 2012 excludes the effect of the special item associated with the proposed spin-merge of the transmission business.
|
III.
|
Entergy Wholesale Commodities
|
Table 5: Entergy Wholesale Commodities Operational Adjusted EBITDA – Reconciliation of GAAP to Non-GAAP Measures
|
||||||
First Quarter 2012 vs. 2011
|
||||||
($ in millions)
|
||||||
First Quarter
|
||||||
2012
|
2011
|
Change
|
||||
Net Income
|
(169)
|
123
|
(292)
|
|||
Add back: interest expense
|
7
|
5
|
2
|
|||
Add back: income tax expense
|
(90)
|
85
|
(175)
|
|||
Add back: depreciation and amortization
|
51
|
43
|
8
|
|||
Subtract: interest and investment income
|
41
|
31
|
10
|
|||
Add back: decommissioning expense
|
30
|
28
|
2
|
|||
Adjusted EBITDA
|
(212)
|
253
|
(465)
|
|||
Add back: special item for asset impairment
|
356
|
-
|
356
|
|||
Operational Adjusted EBITDA
|
144
|
253
|
(109)
|
|||
Table 6: Entergy Wholesale Commodities Operational Performance Measures
|
|||
First Quarter 2012 vs. 2011 (see Appendix F for definitions of measures)
|
|||
First Quarter
|
|||
2012
|
2011
|
% Change
|
|
Owned capacity (b)
|
6,612
|
6,016
|
9.9%
|
GWh billed
|
11,193
|
10,519
|
6.4%
|
Average realized revenue per MWh
|
$49.68
|
$56.98
|
(12.8)%
|
Non-fuel O&M expense / purchased power per MWh (c)
|
$25.35
|
$24.95
|
1.6%
|
EWC Nuclear Fleet
|
|||
Capacity factor
|
88%
|
91%
|
(3.3)%
|
GWh billed
|
9,838
|
9,913
|
(0.8)%
|
Average realized revenue per MWh
|
$50.32
|
$57.46
|
(12.4)%
|
Production cost per MWh
|
$25.85
|
$24.01
|
7.7%
|
Refueling outage days (d):
|
|||
Indian Point 2
|
27
|
-
|
|
Indian Point 3
|
-
|
23
|
|
(b)
|
The updated capacity figure reflects the acquisition of the Rhode Island State Energy Center (583 MW) and the final testing and confirmation of a small incremental increase in output associated with equipment replacements installed at Palisades (13 MW).
|
(c)
|
First quarter 2012 excludes the effect of the special item for impairment of the Vermont Yankee assets.
|
(d)
|
Reflects the refueling outage days that occurred in the first quarter; Indian Point 3 had seven refueling days in second quarter 2011 and Indian Point 2 had one refueling day in second quarter 2012.
|
Table 7: Entergy Wholesale Commodities Capacity and Generation Projected Sold Forward
|
|||||
Second Quarter 2012 through 2016 (see Appendix F for definitions of measures)
|
|||||
Balance of 2012
|
2013
|
2014
|
2015
|
2016
|
|
Entergy Wholesale Commodities Nuclear Portfolio
|
|||||
Energy
|
|||||
Planned TWh of generation (e)
|
31
|
40
|
41
|
41
|
40
|
Percent of planned generation sold forward
|
|||||
Unit-contingent
|
60%
|
41%
|
14%
|
12%
|
12%
|
Unit-contingent with availability guarantees
|
18%
|
19%
|
15%
|
13%
|
13%
|
Firm LD
|
24%
|
24%
|
20%
|
-%
|
-%
|
Offsetting positions
|
(13)%
|
-%
|
-%
|
-%
|
-%
|
Total energy sold forward
|
89%
|
84%
|
49%
|
25%
|
25%
|
Average revenue under contract per MWh (f)
|
$48
|
$45 - 50
|
$47 – 51
|
$49 - 57
|
$50 - 59
|
Capacity
|
|||||
Planned net MW in operation (e)
|
5,011
|
5,011
|
5,011
|
5,011
|
5,011
|
Percent of capacity sold forward
|
|||||
Bundled capacity and energy contracts
|
16%
|
16%
|
16%
|
16%
|
16%
|
Capacity contracts
|
43%
|
31%
|
25%
|
17%
|
5%
|
Total capacity sold forward
|
59%
|
47%
|
41%
|
33%
|
21%
|
Average revenue under contract per kW per month
(applies to capacity contracts only)
|
$2.3
|
$2.9
|
$3.1
|
$3.2
|
$3.4
|
Blended Capacity and Energy Recap (based on revenues)
|
|||||
Percent of planned energy and capacity sold forward
|
92%
|
85%
|
54%
|
31%
|
30%
|
Average revenue under contract per MWh (f)
|
$50
|
$46
|
$48
|
$52
|
$51
|
Entergy Wholesale Commodities Non-Nuclear Portfolio
|
|||||
Energy
|
|||||
Planned TWh of generation (g)
|
5
|
7
|
7
|
6
|
6
|
Percent of planned generation sold forward
|
|||||
Cost-based contracts
|
41%
|
36%
|
30%
|
35%
|
32%
|
Firm LD
|
5%
|
5%
|
5%
|
6%
|
6%
|
Total energy sold forward
|
46%
|
41%
|
35%
|
41%
|
38%
|
Capacity
|
|||||
Planned net MW in operation (g)
|
1,052
|
1,052
|
1,052
|
1,052
|
1,052
|
Percent of capacity sold forward
|
|||||
Cost-based contracts
|
35%
|
29%
|
24%
|
24%
|
24%
|
Bundled capacity and energy contracts
|
8%
|
8%
|
8%
|
8%
|
8%
|
Capacity contracts
|
52%
|
47%
|
47%
|
48%
|
20%
|
Total capacity sold forward
|
95%
|
84%
|
79%
|
80%
|
52%
|
Non-Nuclear Net Revenue
|
|||||
Expected non-nuclear portfolio net revenue ($ millions) (h)
|
$70
|
$87
|
$84
|
$81
|
$86
|
(e)
|
Assumes successful license renewal and uninterrupted normal operation at all plants, including Vermont Yankee. NRC license renewal applications are in process for three units (with current license expirations noted parenthetically): Pilgrim (6/8/2012), Indian Point 2 (9/28/2013), and Indian Point 3 (12/12/2015). The updated capacity figure reflects the final testing and confirmation of a small incremental increase in output associated with equipment replacements installed at Palisades.
|
(f)
|
Average revenue under contract may fluctuate due to factors including positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs. Also, average revenue under contract excludes payments owed under the value sharing agreement with the New York Power Authority.
|
(g)
|
Non-nuclear planned generation and net MW in operation include purchases from affiliated and non-affiliated counterparties under long-term contracts and exclude energy and capacity from Entergy Wholesale Commodities’ wind investment accounted for under the equity method of accounting and Ritchie.
|
(h)
|
Non-nuclear net revenue may fluctuate due to factors including costs in cost-based energy and capacity contracts and other risk management costs.
|
IV.
|
Parent & Other
|
V.
|
2012 Earnings Guidance
|
·
|
The write-off of a regulatory asset discussed in Utility Results Section II of this release,
|
·
|
Higher pension expense resulting from lower-than-planned pension discount rate and other updated pension assumptions,
|
·
|
Lower market energy prices for EWC’s open position,
|
·
|
Significant unfavorable weather in the first quarter of 2012, and
|
·
|
Opportunities identified to partially offset these challenges.
|
Table 8: 2012 Earnings Per Share Guidance – As-Reported and Operational
|
||||||
(Per share in U.S. $) – Updated April 2012 (i)
|
||||||
Segment
|
Description of Drivers
|
2011 Earnings per Share
|
Expected Change
|
2012
Guidance
Midpoint
|
2012 Guidance Range
|
|
Utility
|
2011 Operational Earnings per Share
|
6.20
|
||||
Adjustment to normalize weather
|
(0.52)
|
|||||
Increased net revenue due to absence of sharing 2011 tax benefit with Entergy Louisiana customers
|
1.11
|
|||||
Increased net revenue due to sales growth and rate actions
|
0.85
|
|||||
Increased non-fuel operation and maintenance expense
|
(0.05)
|
|||||
Increased other operating expenses
|
(0.10)
|
|||||
Increased depreciation expense
|
(0.20)
|
|||||
Increased interest and other charges
|
(0.10)
|
|||||
Higher effective income tax rate
|
(2.49)
|
|||||
Other
|
0.10
|
|||||
Subtotal
|
6.20
|
(1.40)
|
4.80
|
|||
Entergy Wholesale Commodities
|
2011 Operational Earnings per Share
|
2.74
|
||||
Decreased net revenue from nuclear assets due primarily to lower pricing
|
(0.60)
|
|||||
Increased non-fuel operation and maintenance expense for nuclear operations
|
(0.05)
|
|||||
Increased other operating expenses for nuclear operations
|
(0.05)
|
|||||
Decommissioning liability reduction in 2011
|
(0.12)
|
|||||
Increased depreciation expense on nuclear assets
|
(0.05)
|
|||||
Increased after-tax operating income for EWC non-nuclear operations, including RISEC acquisition
|
0.10
|
|||||
Increased interest and dividend income
|
0.05
|
|||||
Higher effective income tax rate
|
(0.17)
|
|||||
Other
|
(0.05)
|
|||||
Subtotal
|
2.74
|
(0.94)
|
1.80
|
|||
Parent & Other
|
2011 Operational Earnings per Share
|
(1.32)
|
||||
Increased Parent non-fuel operation and maintenance expense
|
(0.05)
|
|||||
Increased Parent interest expense
|
(0.15)
|
|||||
Lower income tax expense
|
0.74
|
|||||
Other
|
(0.02)
|
|||||
Subtotal
|
(1.32)
|
0.52
|
(0.80)
|
|||
Consolidated Operational
|
2012 Operational Earnings per Share Guidance Range
|
7.62
|
(1.82)
|
5.80
|
5.40 – 6.20
|
|
Decreased net revenue due to first quarter 2012 weather impact
|
(0.18)
|
|||||
Increased income tax expense resulting from write-off of regulatory asset
|
(0.26)
|
|||||
Increased non-fuel operation and maintenance expense due to final pension assumptions
|
(0.24)
|
|||||
Reduced operating expenses due to Vermont Yankee asset impairment
|
0.14
|
|||||
Decreased net revenue on EWC’s nuclear open position largely driven by lower energy prices as of March 31, 2012
|
(0.23)
|
|||||
Other
|
0.22
|
|||||
Revised 2012 Operational Earnings per Share Guidance Range
|
7.62
|
(2.37)
|
5.25
|
4.85 – 5.65
|
||
Consolidated As-Reported
|
2011 As-Reported Earnings per Share
|
7.55
|
||||
Changes detailed above
|
(2.37)
|
|||||
2011 special items for expenses associated with proposed spin-merge of Entergy’s transmission business
|
0.07
|
|||||
Asset impairment on Vermont Yankee nuclear power plant
|
(1.26)
|
|||||
Year-to-date 2012 special item for expenses associated with proposed spin-merge of Entergy’s transmission business
|
(0.04)
|
|||||
2012 As-Reported Earnings per Share Guidance Range (j)
|
7.55
|
(3.60)
|
3.95
|
3.55 – 4.35
|
||
(i) Originally prepared November 2011, updated January 2012 to reflect 2011 final results, and revised April 2012.
|
(j) As-reported earnings guidance will be updated to reflect special items as recorded throughout 2012.
|
·
|
Normal weather
|
·
|
Retail sales growth of around 1.6 percent on a weather-adjusted basis, including the effects of industrial expansion and cogen loss
|
·
|
Increased revenue from rate actions
|
·
|
Increased net revenue due to the absence of the third quarter 2011 regulatory charge to reflect an agreement to share a portion of tax benefits with Entergy Louisiana customers that resulted from an IRS tax settlement
|
·
|
Increased non-fuel operation and maintenance expense due to plant acquisitions and general expense increases, including lower expense associated with employee stock options, which is offset in Parent & Other
|
·
|
Increased depreciation expense associated with capital spending at the Utility
|
·
|
Increased other operating expense due primarily to higher taxes other than income taxes, resulting largely from new plant acquisitions as well as expiration of property tax exemptions
|
·
|
Increased interest expense due to higher debt outstanding
|
·
|
Higher effective income tax rate in 2012, due largely to the absence of the August 2011 IRS settlement, a portion of which was partially offset in net revenue as noted above
|
·
|
Other primarily driven by the effect of 2011 share repurchases
|
·
|
41 TWh of total output for the non-utility nuclear fleet, reflecting an approximate 93 percent capacity factor, including 30-day scheduled refueling outages at Indian Point 2 and Palisades in Spring 2012 and FitzPatrick in Fall 2012
|
·
|
Assumes full year operations for Vermont Yankee and Pilgrim
|
·
|
89 percent of energy sold under existing contracts at the time 2012 guidance was initiated and 11 percent sold into the spot market for EWC-nuclear fleet
|
·
|
$49/MWh average energy contract price and $46/MWh average unsold energy price based on published market prices at the end of September 2011 for EWC-nuclear fleet
|
·
|
50 percent of capacity sold under existing contracts (including 32 percent sold as capacity contracts and 18 percent sold bundled with energy) for EWC-nuclear fleet at the time 2012 guidance was initiated
|
·
|
$2.8/kW-month average sold capacity contract price and $0.5/kW-month average unsold capacity price based on published market prices at the end of September 2011 for EWC-nuclear fleet
|
·
|
Palisades PPA revenue amortization of $17 million in 2012, down from $43 million in 2011
|
·
|
Increased nuclear fuel expense reflected in net revenue
|
·
|
Non-fuel operation and maintenance expense for nuclear operations, including refueling outage expense and purchased power, around $25.5/MWh reflecting general expense increases
|
·
|
Absence of reduction in the asset retirement obligation resulting from an updated decommissioning study, which reduced decommissioning expense, completed in the fourth quarter 2011
|
·
|
Increased other operating expense due to higher decommissioning expense (excluding the fourth quarter 2011 adjustment noted above) and higher taxes other than income taxes for nuclear operations
|
·
|
Increased depreciation expense on nuclear assets due to higher depreciable plant balances as well as declining useful life of nuclear assets
|
·
|
Improved year-over-year operating income for the balance of EWC’s business, including the assumed Rhode Island State Energy Center (RISEC) acquisition by year-end 2011 and market prices at the end of September 2011 (adjusted 2012 operational guidance considers market prices as of March 2012)
|
·
|
Higher effective income tax rate in 2012
|
·
|
Increased Parent non-fuel operation and maintenance expense due primarily to the offset of lower intercompany employee stock option expense at Utility
|
·
|
Higher Parent interest expense due to the refinancing of low-cost debt (at the time 2012 guidance was initiated, the current credit facility was set to expire in August 2012)
|
·
|
Lower income tax expense in 2012
|
·
|
2012 average fully diluted shares outstanding of approximately 177 million; does not assume any repurchases under the $500 million share repurchase authority, $350 million of which remained as of December 31, 2011
|
·
|
Overall effective income tax rate of 34 percent in 2012
|
·
|
Pension discount rate of 5.6 percent (the final average pension discount rate is 5.1 percent)
|
·
|
Unfavorable weather effect through first quarter 2012
|
·
|
First quarter 2012 write-off of a regulatory asset associated with income taxes
|
·
|
Lower-than-planned pension discount rate and other updated pension assumptions
|
·
|
Reduced expenses (fuel, refueling outage amortization, depreciation) for Vermont Yankee resulting from the asset impairment recorded in the first quarter of 2012
|
·
|
$30/MWh average EWC unsold nuclear energy price based on year-to-date and balance of the year market prices as of the end of the March 2012
|
·
|
$1.15/kW-month average EWC unsold nuclear capacity price based on year-to-date and balance of the year market prices as of the end of March 2012
|
Table 9: 2012 Earnings Sensitivities
|
|||
(Per share in U.S. $) – Updated April 2012
|
|||
Variable
|
2012 Guidance Assumption
|
Description of Change
|
Estimated
Annual Impact (k)
|
Utility
|
|||
Sales growth
Residential
Commercial / Governmental
Industrial
|
Around 1.6% 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
|
- / + 0.37
|
Entergy Wholesale Commodities (l)
|
|||
Capacity factor
|
93% capacity factor
|
1% change in capacity factor
|
- / + 0.06
|
Energy revenues
|
89% energy sold at $49/MWh in 2012;
11% unsold at $30/MWh in 2012
|
$10/MWh market price change
|
- / + 0.10
|
Non-fuel operation and maintenance expense (m)
|
$25.5/MWh non-fuel operation and maintenance expense/purchased power
|
$1/MWh change
|
+ / - 0.14
|
Outage (lost revenue only)
|
93% capacity factor, including refueling outages for three non-utility nuclear units
|
1,000 MW plant for 10 days at average portfolio energy price of $49/MWh for sold and $30/MWh for unsold volumes in 2012
|
- 0.03 / n/a
|
(k)
|
Based on 2011 average fully diluted shares outstanding of approximately 178 million.
|
(l)
|
Based on Entergy Wholesale Commodities’ nuclear portfolio. Assumes successful license renewal and uninterrupted normal operation at all plants.
|
(m)
|
First quarter 2012 excludes the effect of the special item for impairment of the Vermont Yankee plant.
|
VI.
|
Long-term Financial Outlook
|
Table 10: Long-term Financial Outlook
|
||
Prepared November 2011
|
||
Category
|
Long-term Outlook
|
Assumption
|
Earnings
|
Utility net income
|
6 to 8 percent compound annual net income growth rate over the 2010 – 2014 horizon (2009 base year).
|
Entergy Wholesale Commodities results
|
Revenue projections through 2014 will experience increased volatility due to commodity market activities – one of the most important fundamental drivers for this business. At current sold and forward prices with its existing asset portfolio and in-the-money hedges that will roll off in the coming few years, EWC is expected to deliver declining adjusted EBITDA for the period through 2014 compared to 2010. However, Entergy Wholesale Commodities offers a valuable long-term option from the potential positive effects of ongoing economic growth (driving increased load, market heat rates, capacity prices and natural gas prices), aging and unprofitable unit retirements (driving market heat rate expansion and capacity price increases), new environmental legislation and/or enforcement of additional environmental regulations.
|
|
Corporate results
|
Results will vary depending upon factors including future effective income tax and interest rates and the amount / timing of share repurchases.
|
|
Capital Deployment
|
A balanced capital investment / return program
|
Entergy continues to see value-added investment opportunities at the Utility in the coming years, as well as an investment outlook at Entergy Wholesale Commodities that supports continued safe, secure and reliable operations and opportunistic investments. Entergy aspires to fund this capital program without issuing traditional common equity, while maintaining a competitive capital return program. Given the company’s financial profile with a mix of utility and non-utility businesses, return of capital is expected to be provided similar to the past through a combination of common stock dividends and share repurchases. Absent other attractive investment opportunities, capital deployment through dividends and share repurchases could total as much as $4 – $5 billion from 2010 – 2014 under the current long-term business outlook. The amount of share repurchases may vary as a result of material changes in business results, capital spending or new investment opportunities.
|
Credit Quality
|
Strong liquidity.
|
|
Solid credit metrics that support ready access to capital on reasonable terms.
|
||
Table 11: 2014 Financial Sensitivities – Illustrative
|
|||
Long-term Outlook
|
Assumption
|
Drivers
|
Estimated
Annual Impact
|
Utility
|
(Per share in U.S. $) (n)
|
||
Earnings growth
|
6 – 8% compound annual net income growth rate from 2010 through 2014 (2009 base)
|
1% retail sales growth
$100 million/year investment in service
1% change in allowed ROE
1% change in non-fuel operation and maintenance expense
$100 million change in debt
|
- / + 0.14
- / + 0.03
- / + 0.45
+ / - 0.07
+ / - 0.02
|
Entergy Wholesale Commodities
|
(Adjusted EBITDA in U.S. $, millions) (o) (p)
|
||
Adjusted EBITDA
|
Decline in adjusted EBITDA at current sold and forward power prices compared to 2010, plus option value
|
+0 – 1,500 Btu/kWh heat rate expansion
+$0 – 4/kW-mo capacity price
- / + $0 – 1/MMBtu change in Henry Hub natural gas price
$1/MWh EBITDA expense
|
Up to 130
Up to 150
Down to 195 /
Up to 240
+/- 40
|
Corporate
|
(Per share in U.S. $) (n)
|
||
Balanced capital investment / return / credit quality
|
1% change in interest rate on $1 billion debt
1% change in overall effective income tax rate
$500 million share repurchase (share accretion effect only)
|
+ / - 0.03
+ / - 0.09
+ 0.20 – 0.25
|
(n) Based on estimated 2012 average fully diluted shares outstanding of approximately 177 million.
|
(o) Based on Entergy Wholesale Commodities’ nuclear portfolio. Assumes successful license renewal and uninterrupted normal operation at all plants.
|
(p) Each sensitivity assumes all other factors remain constant; however, market heat rates typically move inverse to natural gas prices and partially offset natural gas price movements. This partial offset is not captured in the sensitivity.
|
VII.
|
Appendices
|
·
|
Appendix A includes information on Entergy’s plan to spin off the Utility transmission business and merge that business with a subsidiary of ITC Holdings Corp.
|
·
|
Appendix B includes earnings per share variance analysis and detail on special items that relate to the current quarter results.
|
·
|
Appendix C provides information on selected pending local and federal regulatory cases and events.
|
·
|
Appendix D provides financial metrics for both current and historical periods. In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
|
·
|
Appendix E provides a summary of planned capital expenditures for the next three years.
|
·
|
Appendix F provides definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
|
·
|
Appendix G provides a reconciliation of GAAP to non-GAAP financial measures used in this release.
|
A.
|
Spin-Merge of Transmission Business
|
·
|
Entergy will spin off its electric transmission business, or “Transco,” to Entergy’s shareholders in the form of a tax-free spin-off.
|
·
|
After the spin-off, the newly formed Transco will merge with a newly-formed subsidiary of ITC.
|
·
|
Prior to the merger, ITC expects to effectuate a $700 million recapitalization, currently anticipated to take the form of a one-time special dividend to its shareholders.
|
·
|
The merger will result in Entergy shareholders receiving 50.1 percent of the shares of pro forma ITC in exchange for their shares of Transco; existing ITC shareholders will own the remaining 49.9 percent of the combined company.
|
Authority
|
Requirements
|
Entergy’s Retail Regulators
|
· Change of control of transmission assets
· Affiliate transaction approvals related to steps in the spin / merge
· Authorization to incur debt in some jurisdictions
|
Federal Energy Regulatory Commission
|
· Change of control of transmission assets (203 filing)
· Acceptance of jurisdictional agreements (205 filing)
· Authorization to assume debt / issue securities (204 filings)
· Changes to System Agreement to remove provisions related to transmission planning and equalization
· ITC filing to establish new rate tariffs for the ITC operating companies
|
Hart-Scott-Rodino Act
|
· Pre-merger notification to review potential antitrust and competition issues
|
Internal Revenue Service
|
· Private letter ruling substantially to the effect that certain requirements for a tax-free treatment of the distribution of Transco are met
|
Securities and Exchange Commission
|
· ITC Form S-4 and Proxy Statement (including audited Transco financial statements and disclosures), and
· Transco Registration Statement
|
ITC Shareholders
|
Approval required for:
· Merger,
· Issuance of shares to ITC shareholders, and
· Amendment to ITC charter to increase authorized number of shares
|
B.
|
Variance Analysis and Special Items
|
Appendix B-1: As-Reported and Operational Earnings Per Share Variance Analysis
|
|||||||||||
First Quarter 2012 vs. 2011
|
|||||||||||
(Per share in U.S. $, sorted in consolidated operational column, most to least favorable)
|
|||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
||||||||
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
||||
2011 earnings
|
0.91
|
0.91
|
0.68
|
0.68
|
(0.21)
|
(0.21)
|
1.38
|
1.38
|
|||
Other income (deductions)-other
|
0.04
|
0.04
|
0.02
|
0.02
|
(0.01)
|
(0.01)
|
0.05
|
0.05
|
|||
Asset impairment
|
-
|
-
|
(1.26)
|
-
|
(q)
|
-
|
-
|
(1.26)
|
-
|
||
Decommissioning expense
|
-
|
-
|
(0.01)
|
(0.01)
|
-
|
-
|
(0.01)
|
(0.01)
|
|||
Interest expense and other charges
|
(0.02)
|
(0.02)
|
(0.01)
|
(0.01)
|
-
|
-
|
(0.03)
|
(0.03)
|
|||
Taxes other than income taxes
|
(0.01)
|
(0.01)
|
(0.03)
|
(0.03)
|
-
|
-
|
(0.04)
|
(0.04)
|
|||
Depreciation / amortization expense
|
(0.03)
|
(0.03)
|
(0.02)
|
(0.02)
|
-
|
-
|
(0.05)
|
(0.05)
|
|||
Other operation & maintenance expense
|
(0.16)
|
(0.13)
|
(r)
|
(0.08)
|
(0.08)
|
(s)
|
-
|
0.01
|
(0.24)
|
(0.20)
|
|
Income taxes - other
|
(0.24)
|
(0.24)
|
(t)
|
0.01
|
0.01
|
(0.03)
|
(0.03)
|
(0.26)
|
(0.26)
|
||
Net revenue
|
(0.14)
|
(0.14)
|
(u)
|
(0.25)
|
(0.25)
|
(v)
|
(0.01)
|
(0.01)
|
(0.40)
|
(0.40)
|
|
2012 earnings
|
0.35
|
0.38
|
(0.95)
|
0.31
|
(0.26)
|
(0.25)
|
(0.86)
|
0.44
|
|||
Utility Net Revenue Variance Analysis
2012 vs. 2011
($ EPS)
|
|
First Quarter
|
|
Weather
|
(0.28)
|
Sales growth / pricing
|
0.16
|
Other
|
(0.02)
|
Total
|
(0.14)
|
(q)
|
The as-reported decrease is due to the impairment loss to write down the carrying values of Vermont Yankee’s long-lived assets to their fair value, in accordance with GAAP.
|
(r)
|
The decrease is attributable to higher compensation and benefits costs (largely post-employment benefits); increased fossil spending; and absence of nuclear insurance refunds received in the first quarter of 2011. Expenses incurred in connection with the planned spin-merge of the transmission business also contributed to the as-reported decrease.
|
(s)
|
The decrease is due to higher compensation and benefits costs (largely post-employment benefits) and the acquisition of RISEC.
|
(t)
|
The decrease is largely attributable to higher income tax expense associated with Entergy’s write off of an Entergy Gulf States Louisiana regulatory asset.
|
(u)
|
The first quarter decrease is primarily attributable to the effect of milder weather in the current quarter compared to colder-than-normal weather in the first quarter of last year, partially offset by an increase in weather-adjusted usage and the net effects of regulatory actions in several jurisdictions, including Entergy Louisiana’s rate action relating to the acquisition of Unit 2 of the Acadia Energy Center.
|
(v)
|
The decrease is due primarily to lower energy pricing for the nuclear portfolio; decreased nuclear generation attributable to higher planned and unplanned outage days also contributed. Partially offsetting the decrease was higher net revenue from the acquisition of RISEC.
|
Appendix B-2: Special Items (shown as positive / (negative) impact on earnings)
|
|||
First Quarter 2012 vs. 2011
|
|||
(Per share in U.S. $)
|
|||
First Quarter
|
|||
2012
|
2011
|
Change
|
|
Utility
|
|||
Transmission business spin-merge expenses
|
(0.03)
|
-
|
(0.03)
|
Entergy Wholesale Commodities
|
|||
Vermont Yankee asset impairment
|
(1.26)
|
-
|
(1.26)
|
Parent & Other
|
|||
Transmission business spin-merge expenses
|
(0.01)
|
-
|
(0.01)
|
Total Special Items
|
(1.30)
|
-
|
(1.30)
|
(U.S. $ in millions)
|
|||
First Quarter
|
|||
2012
|
2011
|
Change
|
|
Utility
|
|||
Transmission business spin-merge expenses
|
(5.8)
|
-
|
(5.8)
|
Entergy Wholesale Commodities
|
|||
Vermont Yankee asset impairment
|
(223.5)
|
-
|
(223.5)
|
Parent & Other
|
|||
Transmission business spin-merge expenses
|
(1.4)
|
-
|
(1.4)
|
Total Special Items
|
(230.7)
|
-
|
(230.7)
|
C.
|
Regulatory Summary
|
|
Appendix C provides a summary of selected regulatory cases and events that are pending.
|
Appendix C: 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 yr, with known and measurable changes through 6/30/10
|
Rate Case Recent Activity: None.
Background: EAI implemented a $63.7 million rate increase in July 2010 pursuant to the settlement approved by the Arkansas Public Service Commission (APSC) in June 2010 authorizing a 10.2 percent allowed return on equity (ROE).
|
Hot Spring Acquisition Recent Activity: On February 9, 2012, the Federal Energy Regulatory Commission (FERC) issued an order authorizing the Hot Spring acquisition under Section 203 of the Federal Power Act. As previously reported, the APSC suspended the schedule for the retail regulatory proceeding pending the results of ongoing transmission studies. On April 6, 2012, Facilities Studies were issued indicating that long-term transmission service is available for the Hot Spring facility provided that supplemental transmission upgrades estimated at approximately $440,000 are made. In addition, the studies noted that surveys of two lines should be conducted, which may result in additional upgrade requirements not expected to exceed $25 million. On April 16, 2012, EAI filed the Facilities Studies with the APSC and reiterated its request for a public interest finding and timely cost recovery. In addition, EAI and the seller, KGen Hot Spring LLC, have satisfied their obligations under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act), and the review of the transaction by the U.S. Department of Justice (DOJ) is ongoing. Assuming timely regulatory approvals and the satisfaction of all other closing conditions, closing is targeted for around mid-2012.
Background: On April 29, 2011, EAI announced that it signed an asset purchase agreement to acquire the Hot Spring Energy Facility, a 620 MW natural gas-fired combined-cycle turbine plant located in Hot Spring County, Arkansas, from KGen Hot Spring LLC, a subsidiary of KGen Power Corporation. The total expected cost is $277 million (or $447/kW) including the purchase price of approximately $253 million (or $408/kW) and planned plant upgrades, transaction costs, and contingencies and excluding transmission upgrades. On July 15, 2011, EAI filed an application with the APSC seeking approval of the Hot Spring acquisition and rider recovery concurrent with closing of the acquisition. On July 21, 2011, the transaction was reported to the DOJ and the Federal Trade Commission to satisfy the requirements of the HSR Act. On January 19, 2012, the APSC issued an order on the Joint Stipulation and Settlement filed by EAI, the APSC General Staff, and the Arkansas Attorney General on January 13, 2012. Under the settlement, the parties agreed that the acquisition costs may be recovered through a capacity acquisition rider and agreed that the level of the ROE reflected in the rider would be submitted to the APSC for resolution. The APSC Staff recommended the ROE for the rider be set at 9.7 percent.
|
|
Entergy Gulf States Louisiana
Authorized ROE Range:
9.9% - 11.4% (electric)
10.0% - 11.0% (gas)
Last Filed Rate Base: $2.4 billion (electric) filed 5/11 based on 12/31/10 test yr
$0.05 billion (gas) filed 4/11 based on 9/30/10 test yr
|
Formula Rate Plan Recent Activity: None.
Background: At its October 2009 Business and Executive (B&E) session, the Louisiana Public Service Commission (LPSC) approved an uncontested settlement which, among other things, extended the formula rate plan (FRP) regulatory process for an additional three years. The new FRP, adopted for the 2008-2010 test years, retained the 10.65 percent ROE midpoint with a +/- 75 basis point bandwidth and a recovery mechanism for LPSC-approved capacity additions. Earnings outside the bandwidth are allocated prospectively, 60 percent to customers and 40 percent to EGSL. As part of the settlement, all parties also committed to work together to attempt to develop a transmission rider for EGSL. In response to a depreciation rate complaint filed at FERC by the LPSC, EGSL presented in its 2009 test year FRP filing 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). The depreciation matter raised by the ancillary filing and the transmission rider remain outstanding. At its October 2011 B&E session, the LPSC accepted the joint EGSL / LPSC Staff report reflecting resolution of the 2010 test year FRP filing. The filing reflected an 11.11 percent earned ROE which was within the earnings bandwidth resulting in no cost of service rate change. The filing also reflected a $(22.8) million decrease outside of the FRP sharing mechanism for capacity costs. At its November 2011 B&E session, the LPSC approved a one-year extension of EGSL’s current FRP. EGSL is required to file a full rate case by January 2013.
|
Entergy Louisiana
Authorized ROE Range:
9.45% - 11.05%
Last Filed Rate Base:
$3.2 billion filed 5/11 based on 12/31/10 test yr
|
Formula Rate Plan Recent Activity: None.
Background: At its October 2009 B&E session, the LPSC approved an uncontested settlement which, among other things, extended the FRP regulatory process for an additional three years. The new FRP, adopted for the 2008-2010 test years, retained the 10.25 percent ROE midpoint with a +/- 80 basis point bandwidth and a recovery mechanism for LPSC-approved capacity additions. Earnings outside the bandwidth are allocated prospectively, 60 percent to customers and 40 percent to ELL. As part of the settlement, all parties also committed to work together to attempt to develop a transmission rider for ELL. In response to a depreciation rate complaint filed at FERC by the LPSC, ELL presented in its 2009 test year FRP filing 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). The depreciation matter raised by the ancillary filing and the transmission rider remain outstanding. At its October 2011 B&E session, the LPSC accepted the joint ELL / LPSC Staff report reflecting resolution of the 2010 test year FRP filing. The filing reflected an 11.08 percent earned ROE which was within the earnings bandwidth tolerance resulting in no cost of service rate change. Capacity costs were essentially unchanged. At its November 2011 B&E session, the LPSC approved a one-year extension of ELL’s current FRP. As part of the one-year extension, if the Waterford 3 replacement steam generator (RSG) project is completed by March 31, 2013, ELL shall be permitted to include in rates the revenue requirement associated with the project upon completion. Inclusion of the revenue requirement shall be on a subject-to-refund basis pending proceedings by the LPSC to review the prudence of costs related to project construction. For the rate-effective period of the 2011 test year prior to the project’s completion, earnings above certain levels will be recorded as a regulatory liability used to offset the Waterford 3 RSG project’s revenue requirement. Beginning in September 2012 (the normal FRP rate change date) and ending the earlier of (1) when the project is closed to plant or (2) January 1, 2013, earnings in excess of the upper band (11.05 percent) shall be recognized by recording a regulatory liability. After January 1, 2013, earnings in excess of 10.25 percent shall be recognized by recording a regulatory liability. Upon the project’s completion, earnings above 10.25 percent shall be used to offset the project’s revenue requirement. The total regulatory liability shall be amortized to the project’s revenue requirement over the first twelve months of operation. These rates are anticipated to remain in effect until ELL’s next full rate case is resolved. ELL is required to file a full rate case by January 2013.
|
Appendix C: Regulatory Summary Table (continued)
|
|
Company
|
Pending Cases / Events
|
Retail Regulation
|
|
Entergy Louisiana
(continued)
|
Waterford 3 Steam Generator Replacement Recent Activity: On January 31, 2012, ELL filed its Quarterly Monitoring Report indicating that the Waterford 3 replacement steam generator (RSG) project continues to meet revised cost estimates and the revised schedule for installation in Fall 2012. See also, ELL - Formula Rate Plan Recent Activity.
Background: On June 26, 2008, ELL petitioned the LPSC to replace two steam generators, the reactor vessel closure head, and control drive mechanisms. On November 12, 2008, the LPSC approved the stipulated settlement, finding that the decision to undertake this project at an estimated cost of $511 million was prudent and the timing concurrent with the 2011 outage was reasonable. On December 17, 2010, ELL notified the LPSC that Westinghouse advised that the Waterford 3 RSGs would not be completed and delivered in time to maintain the then current project schedule for installation during the Spring 2011 refueling outage. On June 15, 2011, ELL filed a Special Monitoring Report to reflect the updated cost and schedule associated with the project. The installation schedule was revised from the Spring 2011 refueling outage to the Fall 2012 refueling outage. Additional funding of approximately $176 million is required, bringing the revised replacement project total to approximately $687 million. Extensive inspections of the steam generators during the Spring 2011 refueling outage confirmed that Waterford 3 can operate safely for another full cycle before the replacement of the steam generator. On December 19, 2011, ELL filed its Amended and Supplemental Application for Certain Cost Recovery, which will establish the revenue requirement for the project that will be placed into rates, subject to refund pending a review of the prudence of the project costs, upon the commercial operation of the project. Pending the final determination of the revenue requirement, through its 2011 Test Year FRP filing, ELL will place the Waterford 3 RSG costs into rates subject to refund.
|
Ninemile 6 Certification Recent Activity: At the March 21, 2012 B&E session, the LPSC approved the joint settlement between ELL, EGSL, and the LPSC Staff authorizing the construction of the Ninemile 6 project and EGSL’s participation in a life-of-unit purchase power agreement for 25 percent of the capacity and energy output of the unit. Under the terms of the settlement, costs may be recovered through ELL’s FRP if one is in effect when the project is placed in service; alternatively, ELL must file a rate case approximately 12 months prior to the expected in-service date. On February 2, 2012, the Council of the City of New Orleans (CCNO) approved the participation by Entergy New Orleans, Inc. (ENOI) in a life-of-unit agreement to purchase 20 percent of the capacity and energy output of the Ninemile 6 project. On March 22, 2012, ELL gave full notice to proceed with the construction of the project.
Background: The Ninemile 6 project is a proposed 550 MW combined-cycle gas turbine (CCGT) facility with commercial operation anticipated by the first part of 2015. The estimated construction cost is approximately $721 million. The resource has been allocated 55 percent to ELL, 25 percent to EGSL, and 20 percent to ENOI. On June 21, 2011, ELL filed an application with the LPSC seeking approval to construct the Ninemile 6 project and for EGSL to purchase a portion of the capacity and energy under a life-of-unit power purchase agreement. ENOI submitted an application to the CCNO on July 8, 2011 seeking approval of its participation in the Ninemile 6 project through a life-of-unit power purchase agreement of capacity and energy. The project air permit was issued by the Louisiana Department of Environmental Quality on August 16, 2011.
|
|
Entergy Mississippi
Authorized ROE Range:
10.06% - 12.19%
(per FRP filing)
Last Filed Rate Base:
$1.7 billion filed 3/12 based on 12/31/11 test yr
|
Formula Rate Plan Recent Activity: On March 15, 2012, EMI filed its 2012 FRP evaluation report for the 2011 test year with the Mississippi Public Service Commission (MPSC). The filing reflected a 10.92 percent earned ROE which was within the bandwidth resulting in no change in rates. The calculated 11.12 percent FRP midpoint ROE included the benefit of a 0.79 percent performance incentive.
Background: 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) increased the percent of revenues limit to a 4 percent limit, with any adjustment over 2 percent requiring a hearing; and (5) directed EMI to phase-out the summer / winter rate differential in residential rates over two years. Returns inside the bandwidth result in no change in rates while returns outside the bandwidth reset rates prospectively to or within the bandwidth depending on performance. The annual filing occurs each March with rates effective each June. EMI’s FRP does not have an expiration date. On November 10, 2011, the MPSC approved a Joint Stipulation reached between EMI and the MPSC Staff regarding the 2010 test year FRP filing. The filing reflected a 10.65 percent earned ROE which was within the bandwidth. The calculated 11.63 percent FRP midpoint ROE included the benefit of a 0.79 percent performance incentive. The Joint Stipulation noted that the sum of any disputed amounts do not move EMI outside the “Range of No Change” resulting in no change in rates. On June 23, 2011, EMI filed a Depreciation Study, requesting that new rates become effective with the next base rate change.
|
Hinds Acquisition Recent Activity: On February 9, 2012, the FERC issued an order authorizing the Hinds acquisition under Section 203 of the Federal Power Act. On February 28, 2012, the MPSC approved certification of the transaction. On April 6, 2012, Facilities Studies were issued indicating that long-term transmission service is available for the Hinds facility provided that supplemental transmission upgrades estimated at approximately $580,000 are made and assuming that various projects already included in the transmission construction plan are completed. The retail cost recovery proceeding remains pending before the MPSC. In addition, EMI and the seller, KGen Hinds LLC, have satisfied their obligations under the HSR Act, and the review of the transaction by the DOJ is ongoing. Assuming timely regulatory approvals and the satisfaction of all other closing conditions, closing is targeted for around mid-2012.
Background: On April 29, 2011, EMI announced that it signed an asset purchase agreement to acquire the Hinds Energy Facility, a 450 MW (summer rating) natural gas-fired combined-cycle turbine plant located in Jackson, Mississippi, from KGen Hinds LLC, a subsidiary of KGen Power Corporation. The total expected cost is $246 million (or $547/kW) including the purchase price of approximately $206 million (or $458/kW) and planned plant upgrades, transaction costs, and contingencies and excluding transmission upgrades. On July 15, 2011, EMI filed an application with the MPSC seeking certification of the Hinds acquisition and rider recovery concurrent with closing of the acquisition. On July 21, 2011, the transaction was reported to the DOJ and the Federal Trade Commission to satisfy the requirements of the HSR Act.
|
Appendix C: Regulatory Summary Table (continued)
|
|||
Company
|
Pending Cases / Events
|
||
Retail Regulation
|
|||
Entergy New Orleans
Authorized ROE Range:
10.7% - 11.5% (electric)
10.25% - 11.25% (gas)
Last Filed Rate Base: $0.3 billion (electric), $0.09 billion (gas) filed 5/11 based on 12/31/10 test yr
|
Formula Rate Plan Recent Activity: The 2011 test year evaluation report due in May will be the final filing in the current three-year FRP term. ENOI anticipates that it will discuss possible renewal or extension of the FRP with the CCNO Advisors during the course of the 2011 test year FRP proceeding. The CCNO would be required to approve any such renewal or extension.
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 percent electric ROE with a +/- 40 basis points bandwidth and a 10.75 percent gas ROE with a +/- 50 basis points 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 CCNO-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 side management programs. On September 22, 2011, the CCNO approved the Agreement in Principle reached between ENOI and the CCNO Advisors resolving ENOI’s 2010 test year FRP. The agreement resulted in an $(8.5) million incremental electric rate decrease and a $(1.6) million gas rate decrease effective October 2011. The settlement also provides for the deferral of $13.4 million of Michoud plant maintenance expense incurred in 2010 and the establishment of a regulatory asset that will be amortized over the period October 2011 through September 2018.
|
||
Entergy Texas
Authorized ROE: 10.125%
Last Filed Rate Base: $1.7 billion filed 11/11 based on 6/30/11 adjusted test yr
|
Rate Case Recent Activity: On March 27, 2012 and April 3, 2012, Intervenors and the Public Utility Commission of Texas (PUCT) Staff, respectively, filed direct testimony. The PUCT Staff recommended a base rate increase of $66.1 million and a 9.6 percent ROE. On April 13, 2012, ETI filed rebuttal testimony indicating a revised request for a $104.8 million base rate increase. The hearing commenced on April 24, 2012.
Background: On November 28, 2011, ETI filed its rate case requesting a $111.8 million base rate increase and a 10.6 percent ROE based on an adjusted twelve-month test year ending June 30, 2011. As part of the filing, ETI proposed a Purchased Power Recovery (PPR) rider. The parties have agreed to a procedural schedule that contemplates a final decision by July 30, 2012, with ultimate rates relating back to June 30, 2012. On January 12, 2012, the PUCT voted to not address the PPR rider in the current rate case; however, the PUCT voted to set a baseline in this rate case that would be applicable if a PPR rider is approved in the open rulemaking project docket.
|
||
Other Regulatory Activity: No action has been taken by the PUCT on the rulemaking with respect to a purchased power capacity rider. On April 19, 2012, a hearing took place on unresolved issues relating to the competitive generation service (CGS) tariff proposal. Prior to the hearing, agreement was reached on “who is eligible to participate” and “who pays the cost of the program”, leaving only the issue of “the level of unrecovered costs” as an issue for the hearing. The matter is on the PUCT Open Meeting agenda for April 27, 2012.
Background: On March 10, 2011, the PUCT opened a rulemaking to review recovery of purchased power capacity costs. The parties provided comments in June 2011 and the PUCT Staff subsequently held a technical conference. The CGS tariff was proposed by ETI as required in state legislation initially enacted in 2005 and modified in 2009. Parties have been negotiating a settlement of the CGS tariff proposal since it was severed from ETI’s last rate case proceeding in December 2010. On September 29, 2011, the PUCT denied a motion seeking rejection of the CGS tariff proposal.
|
|||
System Energy Resources, Inc.
Authorized ROE: 10.94%
Last Calculated Rate Base:
$1.0 billion for 3/31/12 monthly cost of service
|
Recent Activity: None.
Background: 10.94 percent ROE approved by July 2001 FERC order.
Grand Gulf Uprate: Work continues on the approximate 178 MW uprate. The implementation outage is in-progress, and the uprate remains targeted for completion in the summer of 2012. SERI owns or leases 90 percent of the plant. Considering the progress of the uprate project during Grand Gulf’s spring 2012 refueling outage, including additional work scope that has emerged during the outage, additional information from the project’s engineering, procurement and construction contractor, the costs required to install instrumentation in the steam dryer in response to evolving guidance from the NRC staff, and delays in obtaining NRC approval, SERI now estimates the total capital investment to be made in the course of the implementation of the Grand Gulf uprate project is approximately $874 million, including South Mississippi Electric Power Association’s 10 percent share. On November 30, 2009, the MPSC issued a Certificate of Public Convenience and Necessity for implementation of the uprate. NRC review of the project is ongoing. From December 2011 through April 2012, SERI worked with the NRC on various Requests for Additional Information (RAIs) relating to the General Electric-Hitachi steam dryer that is being installed as part of the uprate project. SERI has responded to all RAIs and has worked to minimize potential cost effects or delay, if any, to the Grand Gulf uprate implementation schedule.
|
||
Transmission, Proposal to Join MISO and System Agreement
Authorized ROE: 11.0% (w)
Last Filed OATT Rate Base: $2.2 billion (x) filed 5/11 based on 12/31/10 test year
|
Proposal to Join MISO Recent Activity: On March 14, 2012, the LPSC Staff and Intervenors filed direct testimony in ELL’s and EGSL’s joint change of control proceeding. In EAI’s proceeding, the APSC Staff and Intervenors filed direct testimony on March 16, 2012. Intervenors began filing direct testimony in the ENOI and EMI proceedings on March 23, 2012 and April 23, 2012, respectively. Most parties were conditionally supportive of or did not oppose certifying the move to MISO as in the public interest. Several parties, including the LPSC Staff, proposed various conditions. The APSC Staff argued EAI has not proven that it is in the public interest to join MISO and noted that EAI should maintain the option to join SPP. On April 13, 2012, EAI filed rebuttal testimony addressing the claims made by parties challenging the MISO proposal, and on April 19, 2012, EGSL and ELL filed responsive testimony to the pre-filed testimony of the LPSC Staff and Intervenors. The LPSC and APSC have established procedural schedules with hearings beginning May 2, 2012 and May 30, 2012, respectively; potential decisions could be issued shortly thereafter. The MPSC has scheduled a hearing in July, with a final order expected at the end of August. The CCNO has scheduled a hearing in September. ETI plans to submit its change of control filing around April 30, 2012.
|
(w)
|
Applies to sales made under Entergy’s FERC-jurisdictional open access transmission tariff (OATT).
|
(x)
|
Reflects transmission rate base in Entergy’s FERC OATT filing, which is also included in the rate base figures for each of the Utility operating companies shown above.
|
Appendix C: Regulatory Summary Table (continued)
|
|
Company
|
Pending Cases / Events
|
Wholesale Regulation
|
|
Transmission, Proposal to Join MISO and System Agreement
(continued)
|
On April 19, 2012, the FERC conditionally accepted MISO’s proposal related to the allocation of transmission upgrade costs in connection with the transition and integration of the Utility operating companies into MISO. In addition, the Utility operating companies have agreed to give authority to the Entergy Regional State Committee (E-RSC), upon unanimous vote and within the first five years after the Utility operating companies join MISO, (i) to direct the allocation of certain transmission upgrade costs among the Utility operating companies’ transmission pricing zones in a manner that differs from the allocation that would occur under the MISO OATT and (ii) to direct the Utility operating companies as transmission owners to add projects to MISO’s transmission expansion plan. FERC filings related to integrating the Utility operating companies into MISO are targeted for Summer 2012. The target implementation date for joining MISO is December 2013.
Background: In November 2006, the Utility operating companies installed SPP as their Independent Coordinator of Transmission (ICT) with an initial term of four years unless Entergy filed and FERC approved an extension beyond that four-year period. The Utility 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 for the transmission system, and overseeing the weekly procurement process. On November 16, 2010, FERC issued an order accepting the Utility operating companies’ proposal to extend the ICT arrangement with SPP by an additional term of two years, providing time for analysis of longer-term structures.
On December 16, 2010, FERC issued an order that granted the E-RSC additional authority over transmission planning and cost allocation. Specifically, the E-RSC has been given authority, upon unanimous vote of all members, to direct the Utility operating companies to make a filing to propose changes to the way costs for future transmission upgrades are allocated under Entergy’s OATT and to add specific projects to the Entergy Construction Plan. The E-RSC, comprised of one representative from each of the Utility operating company retail regulators, was formed in 2009 to consider several of the issues related to the Entergy transmission system.
On May 12, 2011, the Utility operating companies submitted detailed analysis to their respective retail regulators supporting their conclusion that joining MISO will provide meaningful long-term benefits for customers. The proposal to join MISO also addresses the exit of EAI and EMI from the System Agreement.
On October 31, 2011, EGSL and ELL submitted their joint change of control filing to the LPSC. EAI, EMI, and ENOI submitted their change of control filings to their respective regulators on November 28, 2011, December 2, 2011, and November 14, 2011, respectively.
|
System Agreement Recent Activity: On March 28, 2012, the APSC approved collection through EAI’s production cost allocation rider beginning in April 2012 the $156 million rough production cost equalization payment for the period June 1, 2005 through December 31, 2005. This payment resulted from FERC’s October 20, 2011 order, subject to refund pending review of the calculations and proposed recovery methodology.
Background: The System Agreement case addresses the allocation of production costs among the Utility operating companies. In 2005, FERC issued orders that require each Utility operating company’s production costs to be within +/- 11 percent of System average production costs and set 2007 as the first possible year of payments among the Utility operating companies, based on calendar year 2006 actual production costs. Upon appeal, the DC Circuit remanded to FERC to reconsider its conclusion that it did not have the authority to order refunds and to also reconsider its decision to delay implementation of the bandwidth remedy.
On October 20, 2011, FERC issued an order addressing the DC Circuit’s directive that FERC reconsider two issues in the original bandwidth proceeding. On the first issue, FERC concluded that it would not require refunds for the 20-month period from September 13, 2001 through May 2, 2003. On the second issue, the FERC order concluded that the prospective bandwidth remedy should begin on June 1, 2005 (the date of its initial order in the proceeding), rather than on January 1, 2006 as it had previously ordered. On December 19, 2011, Entergy made a compliance filing in response to FERC’s order. Pursuant to the calculation provided in the compliance filing, EAI made a combined payment of $156 million to EGSL, EMI, ENOI, and ETI for the seven-month period of June 1, 2005 through December 31, 2005. On January 9, 2012, the APSC and LPSC filed protests to the compliance filing.
Since 2007, bandwidth filings have required payments from EAI to various other Utility operating companies totaling approximately $1.2 billion. FERC set each of the 2007 through 2011 bandwidth filings for hearing following protests from retail regulatory commissions and / or third parties. Requests for rehearing and clarification of a final FERC order in the 2007 bandwidth proceeding were filed. All other bandwidth proceedings remain outstanding.
On November 19, 2009, FERC accepted EAI’s and EMI’s notices to withdraw from the System Agreement effective December 2013 and November 2015, respectively. On February 1, 2011, FERC denied the LPSC and CCNO’s requests for rehearing of this order. The LPSC and CCNO subsequently appealed this decision to the United States Court of Appeals for the DC Circuit. On January 13, 2012, the Court of Appeals for the DC Circuit held oral argument of the LPSC and CCNO appeals.
|
D.
|
Financial and Historical Performance Measures
|
Appendix D-1: GAAP and Non-GAAP Financial Performance Measures
|
||||
First Quarter 2012 vs. 2011
(see Appendix F for definitions of certain measures)
|
||||
For 12 months ending March 31
|
2012
|
2011
|
Change
|
|
GAAP Measures
|
||||
Return on average invested capital – as-reported
|
6.0%
|
7.7%
|
(1.7%)
|
|
Return on average common equity – as-reported
|
10.8%
|
14.8%
|
(4.0%)
|
|
Net margin – as-reported
|
8.5%
|
11.4%
|
(2.9%)
|
|
Cash flow interest coverage
|
7.5
|
7.8
|
(0.3)
|
|
Book value per share
|
$50.32
|
$47.88
|
$2.44
|
|
End of period shares outstanding (millions)
|
177.2
|
178.3
|
(1.1)
|
|
Non-GAAP Measures
|
||||
Return on average invested capital – operational
|
7.2%
|
7.9%
|
(0.7%)
|
|
Return on average common equity – operational
|
13.6%
|
15.3%
|
(1.7%)
|
|
Net margin – operational
|
10.7%
|
11.8%
|
(1.1%)
|
|
As of March 31 ($ in millions)
|
2012
|
2011
|
Change
|
|
GAAP Measures
|
||||
Cash and cash equivalents
|
685
|
726
|
(41)
|
|
Revolver capacity
|
2,825
|
2,258
|
567
|
|
Total debt
|
12,619
|
12,018
|
601
|
|
Securitization debt
|
1,049
|
910
|
139
|
|
Debt to capital ratio
|
57.9%
|
57.6%
|
0.3%
|
|
Off-balance sheet liabilities:
|
||||
Debt of joint ventures – Entergy’s share
|
93
|
104
|
(11)
|
|
Leases – Entergy’s share
|
508
|
546
|
(38)
|
|
Total off-balance sheet liabilities
|
601
|
650
|
(49)
|
|
Non-GAAP Measures
|
||||
Debt to capital ratio, excluding securitization debt
|
55.7%
|
55.7%
|
-
|
|
Total gross liquidity
|
3,510
|
2,984
|
526
|
|
Net debt to net capital ratio, excluding securitization debt
|
54.2%
|
54.0%
|
0.2%
|
|
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
|
55.5%
|
55.5%
|
-
|
|
Appendix D-2: Historical Performance Measures
(see Appendix F for definitions of measures)
|
|||||||||||||
2Q10
|
3Q10
|
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
12YTD
|
11YTD
|
||||
Financial
|
|||||||||||||
EPS – as-reported ($)
|
1.65
|
2.62
|
1.26
|
1.38
|
1.76
|
3.53
|
0.87
|
(0.86)
|
(0.86)
|
1.38
|
|||
Less – special items ($)
|
(0.06)
|
(0.14)
|
(0.04)
|
- -
|
- -
|
- -
|
(0.07)
|
(1.30)
|
(1.30)
|
- -
|
|||
EPS – operational ($)
|
1.71
|
2.76
|
1.30
|
1.38
|
1.76
|
3.53
|
0.94
|
0.44
|
0.44
|
1.38
|
|||
Trailing twelve months
|
|||||||||||||
ROIC – as-reported (%)
|
8.1
|
8.2
|
7.8
|
7.7
|
7.7
|
8.2
|
8.0
|
6.0
|
|||||
ROIC – operational (%)
|
8.5
|
8.7
|
8.2
|
7.9
|
7.9
|
8.2
|
8.0
|
7.2
|
|||||
ROE – as-reported (%)
|
14.8
|
15.5
|
14.6
|
14.8
|
14.8
|
16.1
|
15.4
|
10.8
|
|||||
ROE – operational (%)
|
15.8
|
16.6
|
15.6
|
15.3
|
15.2
|
16.1
|
15.6
|
13.6
|
|||||
Cash flow interest coverage
|
6.6
|
8.0
|
7.8
|
7.8
|
7.6
|
6.6
|
7.1
|
7.5
|
|||||
Debt to capital ratio (%)
|
56.6
|
57.5
|
57.3
|
57.6
|
58.1
|
57.3
|
57.3
|
57.9
|
|||||
Debt to capital ratio, excluding securitization debt (%)
|
54.8
|
55.6
|
55.3
|
55.7
|
56.3
|
55.1
|
55.0
|
55.7
|
|||||
Net debt to net capital ratio, excluding securitization debt (%)
|
51.6
|
50.9
|
52.1
|
54.0
|
55.1
|
52.8
|
53.5
|
54.2
|
|||||
Utility
|
|||||||||||||
GWh billed
|
|||||||||||||
Residential
|
7,705
|
12,365
|
7,750
|
9,042
|
7,993
|
12,376
|
7,274
|
7,760
|
7,760
|
9,042
|
|||
Commercial & Governmental
|
7,384
|
9,341
|
7,504
|
7,032
|
7,548
|
9,344
|
7,270
|
6,992
|
6,992
|
7,032
|
|||
Industrial
|
9,862
|
10,276
|
9,880
|
9,516
|
10,140
|
11,024
|
10,130
|
9,958
|
9,958
|
9,516
|
|||
Wholesale
|
971
|
1,063
|
1,021
|
947
|
1,036
|
1,038
|
1,090
|
732
|
732
|
947
|
|||
O&M expense per MWh (y)
|
$19.21
|
$16.41
|
$21.18
|
$17.89
|
$19.09
|
$14.93
|
$21.99
|
$20.08
|
$20.08
|
$17.89
|
|||
Reliability – trailing twelve months
|
|||||||||||||
SAIFI
|
1.8
|
1.8
|
1.7
|
1.7
|
1.7
|
1.7
|
1.6
|
1.7
|
|||||
SAIDI
|
206
|
197
|
187
|
188
|
201
|
213
|
208
|
210
|
|||||
Entergy Wholesale Commodities
|
|||||||||||||
Operational adjusted EBITDA
($ millions)
|
229
|
246
|
281
|
253
|
174
|
241
|
193
|
144
|
144
|
253
|
|||
Owned Capacity in MW
|
6,351
|
6,351
|
6,351
|
6,016
|
6,016
|
6,016
|
6,599
|
6,612
|
6,612
|
6,016
|
|||
GWh billed
|
10,498
|
10,736
|
10,320
|
10,519
|
10,652
|
11,284
|
11,065
|
11,193
|
11,193
|
10,519
|
|||
Avg realized revenue per MWh
|
$58.15
|
$61.51
|
$58.16
|
$56.98
|
$52.32
|
$55.87
|
$52.74
|
$49.68
|
$49.68
|
$56.98
|
|||
Non-fuel O&M expense / purchased power per MWh (z) (aa)
|
$26.93
|
$29.59
|
$26.74
|
$24.95
|
$26.87
|
$25.32
|
$25.37
|
$25.35
|
$25.35
|
$24.95
|
|||
EWC Nuclear Operational Measures
|
|||||||||||||
Capacity factor (%)
|
90
|
91
|
86
|
91
|
91
|
98
|
93
|
88
|
88
|
91
|
|||
GWh billed
|
9,868
|
9,888
|
9,644
|
9,913
|
9,993
|
10,645
|
10,367
|
9,838
|
9,838
|
9,913
|
|||
Avg realized revenue per MWh
|
$57.69
|
$61.41
|
$58.80
|
$57.46
|
$52.38
|
$56.07
|
$53.00
|
$50.32
|
$50.32
|
$57.46
|
|||
Production cost per MWh (z)
|
$24.40
|
$27.79
|
$25.23
|
$24.01
|
$25.96
|
$24.92
|
$25.92
|
$25.85
|
$25.85
|
$24.01
|
|||
(y) First quarter 2012 excludes the effect of the special item associated with the proposed spin-merge of the transmission business.
|
(z) 2010 excludes the effects of the non-utility nuclear spin-off expenses special item at Entergy Wholesale Commodities.
|
(aa) First quarter 2012 excludes the effect of the special item for impairment of the Vermont Yankee plant.
|
E.
|
Planned Capital Expenditures
|
·
|
Utility: the Utility’s portfolio transformation strategy including the 620 MW Hot Spring and 450 MW Hinds power plant acquisitions (including planned plant upgrades, transaction costs, and contingencies), an approximate 178 MW uprate project at the Grand Gulf nuclear plant, and Entergy Louisiana’s Ninemile 6 new CCGT project; the steam generator replacement at Entergy Louisiana’s Waterford 3 nuclear unit; transmission upgrades and spending to support the Utility’s plan to join the MISO Regional Transmission Organization by December 2013. Generation capital commitments include minimal investment for environmental compliance projects. The effect of the increased cost estimate for the Grand Gulf nuclear plant uprate project (which is discussed more fully in Appendix C) is not reflected in the Utility capital plan.
|
·
|
Entergy Wholesale Commodities: dry cask storage, nuclear license renewal efforts, component replacement and identified repairs across the fleet, NYPA value sharing, the Indian Point Independent Safety Evaluation, and wedgewire screens at the Indian Point site.
|
Appendix E: 2012 – 2014 Planned Capital Expenditures
|
||||
($ in millions) – Prepared January 2012
|
||||
2012
|
2013
|
2014
|
Total
|
|
Maintenance capital
|
||||
Utility
|
||||
Generation
|
128
|
129
|
131
|
388
|
Transmission
|
282
|
273
|
255
|
810
|
Distribution
|
433
|
485
|
496
|
1,414
|
Other
|
91
|
89
|
103
|
283
|
Utility Total
|
934
|
976
|
985
|
2,895
|
Entergy Wholesale Commodities
|
90
|
120
|
107
|
317
|
Maintenance capital subtotal
|
1,024
|
1,096
|
1,092
|
3,212
|
Other capital commitments
|
||||
Utility
|
||||
Generation
|
1,428
|
583
|
358
|
2,369
|
Transmission
|
170
|
128
|
264
|
562
|
Distribution
|
17
|
11
|
11
|
39
|
Other
|
45
|
47
|
35
|
127
|
Utility Total
|
1,660
|
769
|
668
|
3,097
|
Entergy Wholesale Commodities
|
259
|
241
|
291
|
791
|
Other capital commitments subtotal
|
1,919
|
1,010
|
959
|
3,888
|
Total Planned Capital Expenditures
|
2,943
|
2,106
|
2,051
|
7,100
|
F.
|
Definitions
|
Appendix F: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures
|
|
Utility
|
|
GWh billed
|
Total number of GWh billed to all retail and wholesale customers
|
O&M expense per MWh
|
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 retail customers
|
Number of customers at end of period
|
Entergy Wholesale Commodities
|
|
Owned capacity
|
Installed capacity owned and operated by Entergy Wholesale Commodities, including investments in wind generation accounted for under the equity method of accounting. EWC’s 335 MW ownership position in the Harrison County power plant was sold on December 31, 2010. EWC acquired the Rhode Island State Energy Center, a 583 MW natural gas-fired combined-cycle generating plant, on December 20, 2011
|
GWh billed
|
Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting
|
Average realized revenue per MWh
|
As-reported revenue per MWh billed for Entergy Wholesale Commodities, excluding revenue from the amortization of the Palisades below-market PPA and/or investments in wind generation accounted for under the equity method of accounting
|
Non-fuel O&M expense / purchased power per MWh
|
Operation, maintenance and refueling expenses and purchased power per MWh billed, excluding fuel and investments in wind generation accounted for under the equity method of accounting
|
Capacity factor
|
Normalized percentage of the period that the nuclear plants generate power
|
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 (based on net generation)
|
Refueling outage days
|
Number of days lost for scheduled refueling outage during the period
|
Planned TWh of generation
|
Amount of output expected to be generated by Entergy Wholesale Commodities resources considering plant operating characteristics, outage schedules, and expected market conditions which impact dispatch, assuming timely renewal of plant operating licenses and uninterrupted normal operations at all plants
|
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 that mitigate price uncertainty (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
|
Cost-based contracts
|
Contracts priced in accordance with cost-based rates, a ratemaking concept used for the design and development of rate schedules to ensure that the filed rate schedules recover only the cost of providing the service; these contacts are on owned non-utility resources located within Entergy’s service territory, which does not operate under market-based rate authority
|
Planned net MW in operation
|
Amount of capacity to be available to generate power and/or sell capacity considering uprates planned to be completed during the year
|
Percent of capacity sold forward
|
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
|
Bundled capacity and energy 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 revenue under contract per MWh or per kW per month
|
Revenue on a per unit basis at which generation output, capacity, or combination of both 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. Revenue may fluctuate due to factors including positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management cost.
|
Appendix F: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures (continued)
|
|
Financial Measures – GAAP
|
|
Return on average invested capital – as-reported
|
12-months rolling 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 Entergy Wholesale Commodities
|
Leases (Entergy’s share)
|
Operating leases held by subsidiaries capitalized at implicit interest rate
|
Debt to capital ratio
|
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; the 2009 ice storm at Entergy Arkansas; and investment recovery of costs associated with the cancelled Little Gypsy repowering project at Entergy Louisiana
|
Financial Measures – Non-GAAP
|
|
Operational earnings
|
As-reported Net Income adjusted to exclude the impact of special items
|
Adjusted EBITDA
|
Earnings before interest, income taxes, depreciation and amortization, and interest and investment income excluding decommissioning expense, and other than temporary impairment losses on decommissioning trust fund assets
|
Operational adjusted EBITDA
|
Adjusted EBITDA excluding effects 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 ratio, excluding securitization debt
|
Gross debt divided by total capitalization, excluding securitization debt
|
Net debt to net capital ratio, excluding securitization debt
|
Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
|
Net debt to net capital ratio, 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 equivalents, excluding securitization debt
|
G.
|
GAAP to Non-GAAP Reconciliations
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures – Return on Equity, Return on Invested Capital and Net Margin Metrics
|
||||||||
($ in millions)
|
||||||||
2Q10
|
3Q10
|
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
|
As-reported Net Income-rolling 12 months (A)
|
1,298
|
1,336
|
1,250
|
1,285
|
1,285
|
1,421
|
1,346
|
946
|
Preferred dividends
|
20
|
20
|
20
|
20
|
20
|
20
|
21
|
21
|
Tax effected interest expense
|
368
|
358
|
354
|
327
|
320
|
320
|
316
|
322
|
As-reported Net Income, rolling 12 months including preferred dividends and tax effected interest expense (B)
|
1,686
|
1,714
|
1,624
|
1,632
|
1,625
|
1,761
|
1,683
|
1,289
|
Special items in prior quarters
|
(76)
|
(71)
|
(75)
|
(42)
|
(32)
|
(7)
|
-
|
(13)
|
Special items in current quarter
|
||||||||
Asset impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(224)
|
Transmission spin-merge
|
-
|
-
|
-
|
-
|
-
|
-
|
(13)
|
(7)
|
Nuclear spin-off expenses
|
(10)
|
(25)
|
(7)
|
-
|
-
|
-
|
-
|
-
|
Total special items (C)
|
(87)
|
(96)
|
(82)
|
(42)
|
(32)
|
(7)
|
(13)
|
(244)
|
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
|
1,773
|
1,810
|
1,706
|
1,674
|
1,657
|
1,768
|
1,696
|
1,533
|
Operational earnings, rolling 12 months (A-C)
|
1,385
|
1,432
|
1,332
|
1,327
|
1,317
|
1,428
|
1,359
|
1,190
|
Average invested capital (D)
|
20,761
|
20,802
|
20,781
|
21,093
|
21,101
|
21,509
|
21,126
|
21,339
|
Average common equity (E)
|
8,769
|
8,608
|
8,555
|
8,698
|
8,684
|
8,849
|
8,729
|
8,725
|
Operating revenues (F)
|
11,058
|
11,453
|
11,488
|
11,269
|
11,210
|
11,273
|
11,229
|
11,072
|
ROIC – as-reported % (B/D)
|
8.1
|
8.2
|
7.8
|
7.7
|
7.7
|
8.2
|
8.0
|
6.0
|
ROIC – operational % ((B-C)/D)
|
8.5
|
8.7
|
8.2
|
7.9
|
7.9
|
8.2
|
8.0
|
7.2
|
ROE – as-reported % (A/E)
|
14.8
|
15.5
|
14.6
|
14.8
|
14.8
|
16.1
|
15.4
|
10.8
|
ROE – operational % ((A-C)/E)
|
15.8
|
16.6
|
15.6
|
15.3
|
15.2
|
16.1
|
15.6
|
13.6
|
Net margin – as-reported % (A/F)
|
11.7
|
11.7
|
10.9
|
11.4
|
11.5
|
12.6
|
12.0
|
8.5
|
Net margin – operational % ((A-C)/F)
|
12.5
|
12.5
|
11.6
|
11.8
|
11.8
|
12.7
|
12.1
|
10.7
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
|
||||||||
($ in millions)
|
||||||||
2Q10
|
3Q10
|
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
|
Gross debt (A)
|
11,853
|
12,247
|
11,816
|
12,018
|
12,360
|
12,452
|
12,387
|
12,619
|
Less securitization debt (B)
|
829
|
940
|
931
|
910
|
896
|
1,086
|
1,071
|
1,049
|
Gross debt, excluding securitization debt (C)
|
11,024
|
11,307
|
10,885
|
11,108
|
11,464
|
11,366
|
11,316
|
11,570
|
Less cash and cash equivalents (D)
|
1,336
|
1,931
|
1,294
|
726
|
530
|
987
|
694
|
685
|
Net debt, excluding securitization debt (E)
|
9,688
|
9,376
|
9,591
|
10,382
|
10,934
|
10,379
|
10,622
|
10,885
|
Total capitalization (F)
|
20,935
|
21,290
|
20,623
|
20,864
|
21,268
|
21,728
|
21,629
|
21,813
|
Less securitization debt (B)
|
829
|
940
|
931
|
910
|
896
|
1,086
|
1,071
|
1,049
|
Total capitalization, excluding securitization debt (G)
|
20,106
|
20,350
|
19,692
|
19,954
|
20,372
|
20,642
|
20,558
|
20,764
|
Less cash and cash equivalents (D)
|
1,336
|
1,931
|
1,294
|
726
|
530
|
987
|
694
|
685
|
Net capital, excluding securitization debt (H)
|
18,770
|
18,419
|
18,398
|
19,228
|
19,842
|
19,655
|
19,864
|
20,079
|
Debt to capital ratio % (A/F)
|
56.6
|
57.5
|
57.3
|
57.6
|
58.1
|
57.3
|
57.3
|
57.9
|
Debt to capital ratio, excluding securitization debt % (C/G)
|
54.8
|
55.6
|
55.3
|
55.7
|
56.3
|
55.1
|
55.0
|
55.7
|
Net debt to net capital ratio, excluding securitization debt % (E/H)
|
51.6
|
50.9
|
52.1
|
54.0
|
55.1
|
52.8
|
53.5
|
54.2
|
Off-balance sheet liabilities (I)
|
641
|
638
|
653
|
650
|
647
|
645
|
604
|
601
|
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
|
53.2
|
52.5
|
53.8
|
55.5
|
56.5
|
54.3
|
54.8
|
55.5
|
Revolver capacity (J)
|
1,338
|
2,216
|
2,354
|
2,258
|
1,993
|
2,116
|
2,001
|
2,825
|
Gross liquidity (D+J)
|
2,674
|
4,147
|
3,648
|
2,984
|
2,523
|
3,103
|
2,695
|
3,510
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Entergy Wholesale Commodities Operational Adjusted EBITDA
|
||||||||
($ in millions)
|
||||||||
2Q10
|
3Q10
|
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
|
Net Income
|
105
|
144
|
151
|
123
|
66
|
131
|
172
|
(169)
|
Add back: interest expense
|
9
|
6
|
5
|
5
|
5
|
6
|
6
|
7
|
Add back: income tax expense
|
67
|
30
|
83
|
85
|
64
|
64
|
12
|
(90)
|
Add back: depreciation and amortization
|
38
|
42
|
43
|
43
|
44
|
45
|
46
|
51
|
Subtract: interest and investment income
|
39
|
43
|
39
|
31
|
33
|
34
|
39
|
41
|
Add back: decommissioning expense
|
27
|
27
|
28
|
28
|
28
|
29
|
(4)
|
30
|
Subtract: other than temporary impairments
|
(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Adjusted EBITDA
|
207
|
206
|
270
|
253
|
174
|
241
|
193
|
(212)
|
Add back: special item for nuclear spin-off
expenses
|
22
|
40
|
11
|
-
|
-
|
-
|
-
|
-
|
Add back: special item for asset impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
356
|
Operational adjusted EBITDA
|
229
|
246
|
281
|
253
|
174
|
241
|
193
|
144
|
VIII.
|
Financial Statements
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
March 31, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
ASSETS
|
||||||||||||||||
CURRENT ASSETS
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | 51,242 | $ | 11,871 | $ | 4 | $ | 63,117 | ||||||||
Temporary cash investments
|
364,284 | 248,008 | 9,593 | 621,885 | ||||||||||||
Total cash and cash equivalents
|
415,526 | 259,879 | 9,597 | 685,002 | ||||||||||||
Securitization recovery trust account
|
49,364 | - | - | 49,364 | ||||||||||||
Notes receivable
|
- | 1,070,361 | (1,070,361 | ) | - | |||||||||||
Accounts receivable:
|
||||||||||||||||
Customer
|
342,835 | 110,091 | - | 452,926 | ||||||||||||
Allowance for doubtful accounts
|
(29,876 | ) | (203 | ) | - | (30,079 | ) | |||||||||
Associated companies
|
16,371 | 112,007 | (128,378 | ) | - | |||||||||||
Other
|
135,925 | 9,625 | 127 | 145,677 | ||||||||||||
Accrued unbilled revenues
|
260,261 | 278 | - | 260,539 | ||||||||||||
Total accounts receivable
|
725,516 | 231,798 | (128,251 | ) | 829,063 | |||||||||||
Deferred fuel costs
|
69,924 | - | - | 69,924 | ||||||||||||
Accumulated deferred income taxes
|
121,074 | - | (116,424 | ) | 4,650 | |||||||||||
Fuel inventory - at average cost
|
213,865 | 8,480 | - | 222,345 | ||||||||||||
Materials and supplies - at average cost
|
561,728 | 334,905 | - | 896,633 | ||||||||||||
Deferred nuclear refueling outage costs
|
104,448 | 126,065 | - | 230,514 | ||||||||||||
System agreement cost equalization
|
36,800 | - | - | 36,800 | ||||||||||||
Prepaid taxes
|
- | 225,369 | (225,369 | ) | - | |||||||||||
Prepayments and other
|
77,751 | 373,172 | 1,119 | 452,042 | ||||||||||||
TOTAL
|
2,375,996 | 2,630,029 | (1,529,689 | ) | 3,476,337 | |||||||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
Investment in affiliates - at equity
|
1,097,271 | 45,940 | (1,097,442 | ) | 45,769 | |||||||||||
Decommissioning trust funds
|
1,774,238 | 2,265,081 | - | 4,039,319 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation)
|
172,112 | 74,051 | 13,704 | 259,867 | ||||||||||||
Other
|
375,968 | 13,693 | 30,000 | 419,661 | ||||||||||||
TOTAL
|
3,419,589 | 2,398,765 | (1,053,738 | ) | 4,764,616 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
Electric
|
34,703,928 | 4,686,238 | 3,416 | 39,393,582 | ||||||||||||
Property under capital lease
|
808,790 | - | - | 808,790 | ||||||||||||
Natural gas
|
345,541 | 439 | - | 345,981 | ||||||||||||
Construction work in progress
|
1,665,761 | 358,567 | 678 | 2,025,005 | ||||||||||||
Nuclear fuel
|
814,858 | 684,361 | - | 1,499,219 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
38,338,878 | 5,729,605 | 4,094 | 44,072,577 | ||||||||||||
Less - accumulated depreciation and amortization
|
17,425,291 | 1,060,131 | 358 | 18,485,780 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET
|
20,913,587 | 4,669,474 | 3,736 | 25,586,797 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
Regulatory assets:
|
||||||||||||||||
Regulatory asset for income taxes - net
|
730,467 | - | - | 730,467 | ||||||||||||
Other regulatory assets
|
4,577,018 | - | - | 4,577,018 | ||||||||||||
Deferred fuel costs
|
258,534 | - | - | 258,534 | ||||||||||||
Goodwill
|
374,099 | 3,073 | - | 377,172 | ||||||||||||
Accumulated deferred income taxes
|
7,611 | 19,097 | 4,563 | 31,271 | ||||||||||||
Other
|
260,674 | 907,697 | (40,359 | ) | 1,128,012 | |||||||||||
TOTAL
|
6,208,403 | 929,867 | (35,796 | ) | 7,102,474 | |||||||||||
- | ||||||||||||||||
TOTAL ASSETS
|
$ | 32,917,575 | $ | 10,628,135 | $ | (2,615,487 | ) | $ | 40,930,224 | |||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
March 31, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
CURRENT LIABILITIES
|
||||||||||||||||
Currently maturing long-term debt
|
$ | 288,845 | $ | 26,430 | $ | - | $ | 315,275 | ||||||||
Notes payable and commercial paper:
|
||||||||||||||||
Associated companies
|
- | 137,966 | (137,966 | ) | - | |||||||||||
Other
|
141,113 | - | - | 141,113 | ||||||||||||
Account payable:
|
||||||||||||||||
Associated companies
|
10,583 | 10,085 | (20,668 | ) | - | |||||||||||
Other
|
672,787 | 242,940 | 521 | 916,248 | ||||||||||||
Customer deposits
|
354,178 | - | - | 354,178 | ||||||||||||
Taxes accrued
|
522,322 | - | (333,670 | ) | 188,652 | |||||||||||
Accumulated deferred income taxes
|
113,920 | 49,044 | 82,028 | 244,992 | ||||||||||||
Interest accrued
|
141,171 | 1,266 | 8,881 | 151,318 | ||||||||||||
Deferred fuel costs
|
279,723 | - | - | 279,723 | ||||||||||||
Obligations under capital leases
|
3,692 | - | - | 3,692 | ||||||||||||
Pension and other postretirement liabilities
|
40,019 | 6,322 | - | 46,341 | ||||||||||||
System agreement cost equalization
|
74,207 | - | - | 74,207 | ||||||||||||
Other
|
139,780 | 203,578 | 2,423 | 345,781 | ||||||||||||
TOTAL
|
2,782,340 | 677,631 | (398,451 | ) | 3,061,520 | |||||||||||
NON-CURRENT LIABILITIES
|
||||||||||||||||
Accumulated deferred income taxes and taxes accrued
|
6,663,141 | 884,722 | 464,765 | 8,012,628 | ||||||||||||
Accumulated deferred investment tax credits
|
282,140 | - | - | 282,140 | ||||||||||||
Obligations under capital leases
|
37,471 | - | - | 37,471 | ||||||||||||
Other regulatory liabilities
|
809,729 | - | - | 809,729 | ||||||||||||
Decommissioning and retirement cost liabilities
|
1,832,588 | 1,520,231 | - | 3,352,820 | ||||||||||||
Accumulated provisions
|
364,639 | 1,799 | 4,323 | 370,761 | ||||||||||||
Pension and other postretirement liabilities
|
2,445,072 | 681,511 | - | 3,126,583 | ||||||||||||
Long-term debt
|
9,049,262 | 107,743 | 2,964,100 | 12,121,105 | ||||||||||||
Other
|
672,588 | 628,669 | (740,560 | ) | 560,697 | |||||||||||
TOTAL
|
22,156,630 | 3,824,675 | 2,692,628 | 28,673,934 | ||||||||||||
Subsidiaries' preferred stock without sinking fund
|
186,510 | - | - | 186,510 | ||||||||||||
EQUITY
|
||||||||||||||||
Common Shareholders' Equity:
|
||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
issued 254,752,788 shares in 2012
|
2,161,268 | 351,095 | (2,509,815 | ) | 2,548 | |||||||||||
Paid-in capital
|
2,417,634 | 1,428,579 | 1,506,043 | 5,352,256 | ||||||||||||
Retained earnings
|
3,427,058 | 3,979,850 | 1,741,354 | 9,148,262 | ||||||||||||
Accumulated other comprehensive income (loss)
|
(187,865 | ) | 366,305 | (144,773 | ) | 33,667 | ||||||||||
Less - treasury stock, at cost (77,601,080 shares in 2012)
|
120,000 | - | 5,502,473 | 5,622,473 | ||||||||||||
Total common shareholders' equity
|
7,698,095 | 6,125,829 | (4,909,664 | ) | 8,914,260 | |||||||||||
Subsidiaries' preferred stock without sinking fund
|
94,000 | - | - | 94,000 | ||||||||||||
TOTAL
|
7,792,095 | 6,125,829 | (4,909,664 | ) | 9,008,260 | |||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 32,917,575 | $ | 10,628,135 | $ | (2,615,487 | ) | $ | 40,930,224 | |||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
December 31, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
ASSETS
|
||||||||||||||||
CURRENT ASSETS
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | 77,711 | $ | 3,754 | $ | 3 | $ | 81,468 | ||||||||
Temporary cash investments
|
281,921 | 318,633 | 12,416 | 612,970 | ||||||||||||
Total cash and cash equivalents
|
359,632 | 322,387 | 12,419 | 694,438 | ||||||||||||
Securitization recovery trust account
|
50,304 | - | - | 50,304 | ||||||||||||
Notes receivable
|
- | 1,083,918 | (1,083,918 | ) | - | |||||||||||
Accounts receivable:
|
||||||||||||||||
Customer
|
403,321 | 165,237 | - | 568,558 | ||||||||||||
Allowance for doubtful accounts
|
(30,827 | ) | (332 | ) | - | (31,159 | ) | |||||||||
Associated companies
|
42,847 | 99,162 | (142,009 | ) | - | |||||||||||
Other
|
151,956 | 13,376 | 854 | 166,186 | ||||||||||||
Accrued unbilled revenues
|
297,265 | 1,018 | - | 298,283 | ||||||||||||
Total accounts receivable
|
864,562 | 278,461 | (141,155 | ) | 1,001,868 | |||||||||||
Deferred fuel costs
|
209,776 | - | - | 209,776 | ||||||||||||
Accumulated deferred income taxes
|
141,804 | 4,655 | (136,603 | ) | 9,856 | |||||||||||
Fuel inventory - at average cost
|
196,246 | 5,886 | - | 202,132 | ||||||||||||
Materials and supplies - at average cost
|
559,230 | 335,526 | - | 894,756 | ||||||||||||
Deferred nuclear refueling outage costs
|
103,788 | 127,243 | - | 231,031 | ||||||||||||
System agreement cost equalization
|
36,800 | - | - | 36,800 | ||||||||||||
Prepaid taxes
|
- | 79,165 | (79,165 | ) | - | |||||||||||
Prepayments and other
|
67,285 | 222,049 | 2,408 | 291,742 | ||||||||||||
TOTAL
|
2,589,427 | 2,459,290 | (1,426,014 | ) | 3,622,703 | |||||||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
Investment in affiliates - at equity
|
1,147,271 | 44,764 | (1,147,159 | ) | 44,876 | |||||||||||
Decommissioning trust funds
|
1,639,951 | 2,148,080 | - | 3,788,031 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation)
|
174,029 | 71,888 | 14,519 | 260,436 | ||||||||||||
Other
|
374,379 | 12,044 | 30,000 | 416,423 | ||||||||||||
TOTAL
|
3,335,630 | 2,276,776 | (1,102,640 | ) | 4,509,766 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
Electric
|
34,487,985 | 4,894,128 | 3,411 | 39,385,524 | ||||||||||||
Property under capital lease
|
809,449 | - | - | 809,449 | ||||||||||||
Natural gas
|
343,111 | 439 | - | 343,550 | ||||||||||||
Construction work in progress
|
1,420,163 | 358,902 | 658 | 1,779,723 | ||||||||||||
Nuclear fuel
|
801,972 | 744,195 | - | 1,546,167 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
37,862,680 | 5,997,664 | 4,069 | 43,864,413 | ||||||||||||
Less - accumulated depreciation and amortization
|
17,238,272 | 1,016,507 | 349 | 18,255,128 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET
|
20,624,408 | 4,981,157 | 3,720 | 25,609,285 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
Regulatory assets:
|
||||||||||||||||
Regulatory asset for income taxes - net
|
799,006 | - | - | 799,006 | ||||||||||||
Other regulatory assets
|
4,636,871 | - | - | 4,636,871 | ||||||||||||
Deferred fuel costs
|
172,202 | - | - | 172,202 | ||||||||||||
Goodwill
|
374,099 | 3,073 | - | 377,172 | ||||||||||||
Accumulated deferred income taxes
|
4,313 | 9,232 | 5,458 | 19,003 | ||||||||||||
Other
|
198,593 | 803,552 | (46,454 | ) | 955,691 | |||||||||||
TOTAL
|
6,185,084 | 815,857 | (40,996 | ) | 6,959,945 | |||||||||||
- | ||||||||||||||||
TOTAL ASSETS
|
$ | 32,734,549 | $ | 10,533,080 | $ | (2,565,930 | ) | $ | 40,701,699 | |||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
December 31, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
CURRENT LIABILITIES
|
||||||||||||||||
Currently maturing long-term debt
|
$ | 245,472 | $ | 27,261 | $ | 1,920,000 | $ | 2,192,733 | ||||||||
Notes payable and commercial paper:
|
||||||||||||||||
Associated companies
|
- | 138,862 | (138,862 | ) | - | |||||||||||
Other
|
108,331 | - | - | 108,331 | ||||||||||||
Account payable:
|
||||||||||||||||
Associated companies
|
14,839 | 36,878 | (51,717 | ) | - | |||||||||||
Other
|
787,516 | 280,663 | 917 | 1,069,096 | ||||||||||||
Customer deposits
|
351,741 | - | - | 351,741 | ||||||||||||
Taxes accrued
|
569,641 | - | (291,406 | ) | 278,235 | |||||||||||
Accumulated deferred income taxes
|
54,592 | 42,613 | 2,724 | 99,929 | ||||||||||||
Interest accrued
|
169,710 | 490 | 13,312 | 183,512 | ||||||||||||
Deferred fuel costs
|
255,839 | - | - | 255,839 | ||||||||||||
Obligations under capital leases
|
3,631 | - | - | 3,631 | ||||||||||||
Pension and other postretirement liabilities
|
37,858 | 6,173 | - | 44,031 | ||||||||||||
System agreement cost equalization
|
80,090 | - | - | 80,090 | ||||||||||||
Other
|
114,083 | 158,277 | 11,171 | 283,531 | ||||||||||||
TOTAL
|
2,793,343 | 691,217 | 1,466,139 | 4,950,699 | ||||||||||||
NON-CURRENT LIABILITIES
|
||||||||||||||||
Accumulated deferred income taxes and taxes accrued
|
6,680,438 | 824,393 | 591,621 | 8,096,452 | ||||||||||||
Accumulated deferred investment tax credits
|
284,747 | - | - | 284,747 | ||||||||||||
Obligations under capital leases
|
38,421 | - | - | 38,421 | ||||||||||||
Other regulatory liabilities
|
737,403 | - | (9,210 | ) | 728,193 | |||||||||||
Decommissioning and retirement cost liabilities
|
1,803,665 | 1,492,905 | - | 3,296,570 | ||||||||||||
Accumulated provisions
|
379,331 | 1,849 | 4,332 | 385,512 | ||||||||||||
Pension and other postretirement liabilities
|
2,463,493 | 670,164 | - | 3,133,657 | ||||||||||||
Long-term debt
|
8,936,342 | 107,744 | 999,627 | 10,043,713 | ||||||||||||
Other
|
651,919 | 639,552 | (789,517 | ) | 501,954 | |||||||||||
TOTAL
|
21,975,759 | 3,736,607 | 796,853 | 26,509,219 | ||||||||||||
Subsidiaries' preferred stock without sinking fund
|
186,510 | 55,399 | (55,398 | ) | 186,511 | |||||||||||
EQUITY
|
||||||||||||||||
Common Shareholders' Equity:
|
||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
issued 254,752,788 shares in 2011
|
2,161,268 | 327,937 | (2,486,657 | ) | 2,548 | |||||||||||
Paid-in capital
|
2,416,634 | 1,499,406 | 1,444,642 | 5,360,682 | ||||||||||||
Retained earnings
|
3,417,829 | 4,118,292 | 1,910,839 | 9,446,960 | ||||||||||||
Accumulated other comprehensive income (loss)
|
(190,794 | ) | 104,222 | (81,880 | ) | (168,452 | ) | |||||||||
Less - treasury stock, at cost (78,396,988 shares in 2011)
|
120,000 | - | 5,560,468 | 5,680,468 | ||||||||||||
Total common shareholders' equity
|
7,684,937 | 6,049,857 | (4,773,524 | ) | 8,961,270 | |||||||||||
Subsidiaries' preferred stock without sinking fund
|
94,000 | - | - | 94,000 | ||||||||||||
TOTAL
|
7,778,937 | 6,049,857 | (4,773,524 | ) | 9,055,270 | |||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 32,734,549 | $ | 10,533,080 | $ | (2,565,930 | ) | $ | 40,701,699 | |||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
March 31, 2012 vs December 31, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
ASSETS
|
||||||||||||||||
CURRENT ASSETS
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | (26,469 | ) | $ | 8,117 | $ | 1 | $ | (18,351 | ) | ||||||
Temporary cash investments
|
82,363 | (70,625 | ) | (2,823 | ) | 8,915 | ||||||||||
Total cash and cash equivalents
|
55,894 | (62,508 | ) | (2,822 | ) | (9,436 | ) | |||||||||
Securitization recovery trust account
|
(940 | ) | - | - | (940 | ) | ||||||||||
Notes receivable
|
- | (13,557 | ) | 13,557 | - | |||||||||||
Accounts receivable:
|
||||||||||||||||
Customer
|
(60,486 | ) | (55,146 | ) | - | (115,632 | ) | |||||||||
Allowance for doubtful accounts
|
951 | 129 | - | 1,080 | ||||||||||||
Associated companies
|
(26,476 | ) | 12,845 | 13,631 | - | |||||||||||
Other
|
(16,031 | ) | (3,751 | ) | (727 | ) | (20,509 | ) | ||||||||
Accrued unbilled revenues
|
(37,004 | ) | (740 | ) | - | (37,744 | ) | |||||||||
Total accounts receivable
|
(139,046 | ) | (46,663 | ) | 12,904 | (172,805 | ) | |||||||||
Deferred fuel costs
|
(139,852 | ) | - | - | (139,852 | ) | ||||||||||
Accumulated deferred income taxes
|
(20,730 | ) | (4,655 | ) | 20,179 | (5,206 | ) | |||||||||
Fuel inventory - at average cost
|
17,619 | 2,594 | - | 20,213 | ||||||||||||
Materials and supplies - at average cost
|
2,498 | (621 | ) | - | 1,877 | |||||||||||
Deferred nuclear refueling outage costs
|
660 | (1,178 | ) | - | (518 | ) | ||||||||||
System agreement cost equalization
|
- | - | - | - | ||||||||||||
Prepaid taxes
|
- | 146,204 | (146,204 | ) | - | |||||||||||
Prepayments and other
|
10,466 | 151,123 | (1,289 | ) | 160,300 | |||||||||||
TOTAL
|
(213,431 | ) | 170,739 | (103,675 | ) | (146,367 | ) | |||||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
Investment in affiliates - at equity
|
(50,000 | ) | 1,176 | 49,717 | 893 | |||||||||||
Decommissioning trust funds
|
134,287 | 117,001 | - | 251,288 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation)
|
(1,917 | ) | 2,163 | (815 | ) | (569 | ) | |||||||||
Other
|
1,589 | 1,649 | - | 3,238 | ||||||||||||
TOTAL
|
83,959 | 121,989 | 48,902 | 254,850 | ||||||||||||
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
Electric
|
215,943 | (207,890 | ) | 5 | 8,058 | |||||||||||
Property under capital lease
|
(659 | ) | - | - | (659 | ) | ||||||||||
Natural gas
|
2,430 | - | - | 2,431 | ||||||||||||
Construction work in progress
|
245,598 | (335 | ) | 20 | 245,282 | |||||||||||
Nuclear fuel
|
12,886 | (59,834 | ) | - | (46,948 | ) | ||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
476,198 | (268,059 | ) | 25 | 208,164 | |||||||||||
Less - accumulated depreciation and amortization
|
187,019 | 43,624 | 9 | 230,652 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET
|
289,179 | (311,683 | ) | 16 | (22,488 | ) | ||||||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
Regulatory assets:
|
||||||||||||||||
Regulatory asset for income taxes - net
|
(68,539 | ) | - | - | (68,539 | ) | ||||||||||
Other regulatory assets
|
(59,853 | ) | - | - | (59,853 | ) | ||||||||||
Deferred fuel costs
|
86,332 | - | - | 86,332 | ||||||||||||
Goodwill
|
- | - | - | - | ||||||||||||
Accumulated deferred income taxes
|
3,298 | 9,865 | (895 | ) | 12,268 | |||||||||||
Other
|
62,081 | 104,145 | 6,095 | 172,321 | ||||||||||||
TOTAL
|
23,319 | 114,010 | 5,200 | 142,529 | ||||||||||||
TOTAL ASSETS
|
$ | 183,026 | $ | 95,055 | $ | (49,557 | ) | $ | 228,525 | |||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
March 31, 2012 vs December 31, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
CURRENT LIABILITIES
|
||||||||||||||||
Currently maturing long-term debt
|
$ | 43,373 | $ | (831 | ) | $ | (1,920,000 | ) | $ | (1,877,458 | ) | |||||
Notes payable and commercial paper:
|
||||||||||||||||
Associated companies
|
- | (896 | ) | 896 | - | |||||||||||
Other
|
32,782 | - | - | 32,782 | ||||||||||||
Account payable:
|
||||||||||||||||
Associated companies
|
(4,256 | ) | (26,793 | ) | 31,049 | - | ||||||||||
Other
|
(114,729 | ) | (37,723 | ) | (396 | ) | (152,848 | ) | ||||||||
Customer deposits
|
2,437 | - | - | 2,437 | ||||||||||||
Taxes accrued
|
(47,319 | ) | - | (42,264 | ) | (89,583 | ) | |||||||||
Accumulated deferred income taxes
|
59,328 | 6,431 | 79,304 | 145,063 | ||||||||||||
Interest accrued
|
(28,539 | ) | 776 | (4,431 | ) | (32,194 | ) | |||||||||
Deferred fuel costs
|
23,884 | - | - | 23,884 | ||||||||||||
Obligations under capital leases
|
61 | - | - | 61 | ||||||||||||
Pension and other postretirement liabilities
|
2,161 | 149 | - | 2,310 | ||||||||||||
System agreement cost equalization
|
(5,883 | ) | - | - | (5,883 | ) | ||||||||||
Other
|
25,697 | 45,301 | (8,748 | ) | 62,250 | |||||||||||
TOTAL
|
(11,003 | ) | (13,586 | ) | (1,864,590 | ) | (1,889,179 | ) | ||||||||
NON-CURRENT LIABILITIES
|
||||||||||||||||
Accumulated deferred income taxes and taxes accrued
|
(17,297 | ) | 60,329 | (126,856 | ) | (83,824 | ) | |||||||||
Accumulated deferred investment tax credits
|
(2,607 | ) | - | - | (2,607 | ) | ||||||||||
Obligations under capital leases
|
(950 | ) | - | - | (950 | ) | ||||||||||
Other regulatory liabilities
|
72,326 | - | 9,210 | 81,536 | ||||||||||||
Decommissioning and retirement cost liabilities
|
28,923 | 27,326 | - | 56,250 | ||||||||||||
Accumulated provisions
|
(14,692 | ) | (50 | ) | (9 | ) | (14,751 | ) | ||||||||
Pension and other postretirement liabilities
|
(18,421 | ) | 11,347 | - | (7,074 | ) | ||||||||||
Long-term debt
|
112,920 | (1 | ) | 1,964,473 | 2,077,392 | |||||||||||
Other
|
20,669 | (10,883 | ) | 48,956 | 58,742 | |||||||||||
TOTAL
|
180,871 | 88,068 | 1,895,774 | 2,164,714 | ||||||||||||
Subsidiaries' preferred stock without sinking fund
|
- | (55,399 | ) | 55,399 | - | |||||||||||
EQUITY
|
||||||||||||||||
Common Shareholders' Equity:
|
||||||||||||||||
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
issued 254,752,788 shares in 2012 and in 2011
|
- | 23,158 | (23,158 | ) | - | |||||||||||
Paid-in capital
|
1,000 | (70,827 | ) | 61,401 | (8,426 | ) | ||||||||||
Retained earnings
|
9,229 | (138,442 | ) | (169,485 | ) | (298,698 | ) | |||||||||
Accumulated other comprehensive income (loss)
|
2,929 | 262,083 | (62,893 | ) | 202,119 | |||||||||||
Less - treasury stock, at cost
|
- | - | (57,995 | ) | (57,995 | ) | ||||||||||
Total common shareholders' equity
|
13,158 | 75,972 | (136,140 | ) | (47,010 | ) | ||||||||||
Subsidiaries' preferred stock without sinking fund
|
- | - | - | - | ||||||||||||
TOTAL
|
13,158 | 75,972 | (136,140 | ) | (47,010 | ) | ||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 183,026 | $ | 95,055 | $ | (49,557 | ) | $ | 228,525 | |||||||
*Totals may not foot due to rounding.
|
||||||||||||||||
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Three Months Ended March 31, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 1,785,632 | $ | - | $ | (791 | ) | $ | 1,784,841 | |||||||
Natural gas
|
46,008 | - | - | 46,008 | ||||||||||||
Competitive businesses
|
- | 560,251 | (7,441 | ) | 552,810 | |||||||||||
Total
|
1,831,640 | 560,251 | (8,232 | ) | 2,383,659 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
444,438 | 94,701 | (302 | ) | 538,837 | |||||||||||
Purchased power
|
281,190 | 13,875 | (10,099 | ) | 284,966 | |||||||||||
Nuclear refueling outage expenses
|
26,702 | 37,181 | - | 63,884 | ||||||||||||
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
Other operation and maintenance
|
490,227 | 232,741 | (1,332 | ) | 721,635 | |||||||||||
Decommissioning
|
28,231 | 29,672 | - | 57,903 | ||||||||||||
Taxes other than income taxes
|
107,099 | 29,769 | 302 | 137,170 | ||||||||||||
Depreciation and amortization
|
228,086 | 51,071 | 1,059 | 280,215 | ||||||||||||
Other regulatory charges (credits) - net
|
382 | - | - | 382 | ||||||||||||
Total
|
1,606,355 | 844,534 | (10,372 | ) | 2,440,516 | |||||||||||
OPERATING INCOME (LOSS)
|
225,285 | (284,283 | ) | 2,140 | (56,857 | ) | ||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
24,307 | - | - | 24,307 | ||||||||||||
Interest and investment income
|
43,273 | 40,293 | (42,574 | ) | 40,992 | |||||||||||
Miscellaneous - net
|
(7,863 | ) | (7,781 | ) | (2,345 | ) | (17,990 | ) | ||||||||
Total
|
59,717 | 32,512 | (44,919 | ) | 47,309 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
127,474 | 7,148 | 12,123 | 146,745 | ||||||||||||
Allowance for borrowed funds used during construction
|
(9,391 | ) | - | - | (9,391 | ) | ||||||||||
Total
|
118,083 | 7,148 | 12,123 | 137,354 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
166,919 | (258,919 | ) | (54,902 | ) | (146,902 | ) | |||||||||
Income taxes
|
99,707 | (90,407 | ) | (9,462 | ) | (162 | ) | |||||||||
CONSOLIDATED NET INCOME (LOSS)
|
67,212 | (168,512 | ) | (45,440 | ) | (146,740 | ) | |||||||||
Preferred dividend requirements of subsidiaries
|
4,332 | - | 611 | 4,943 | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 62,880 | $ | (168,512 | ) | $ | (46,051 | ) | $ | (151,683 | ) | |||||
EARNINGS (LOSS) PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 0.35 | $ | (0.95 | ) | $ | (0.26 | ) | $ | (0.86 | ) | |||||
DILUTED
|
$ | 0.35 | $ | (0.95 | ) | $ | (0.26 | ) | $ | (0.86 | ) | |||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
176,865,363 | |||||||||||||||
DILUTED
|
177,388,045 | |||||||||||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Three Months Ended March 31, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 1,866,495 | $ | - | $ | (596 | ) | $ | 1,865,899 | |||||||
Natural gas
|
71,123 | - | - | 71,123 | ||||||||||||
Competitive businesses
|
- | 610,146 | (5,960 | ) | 604,186 | |||||||||||
Total
|
1,937,618 | 610,146 | (6,556 | ) | 2,541,208 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
438,157 | 69,722 | (186 | ) | 507,693 | |||||||||||
Purchased power
|
356,544 | 15,768 | (9,694 | ) | 362,618 | |||||||||||
Nuclear refueling outage expenses
|
26,476 | 37,509 | - | 63,985 | ||||||||||||
Asset impairment
|
- | - | - | - | ||||||||||||
Other operation and maintenance
|
448,201 | 209,143 | (1,596 | ) | 655,748 | |||||||||||
Decommissioning
|
27,162 | 28,103 | - | 55,265 | ||||||||||||
Taxes other than income taxes
|
103,591 | 21,412 | 231 | 125,234 | ||||||||||||
Depreciation and amortization
|
220,605 | 43,231 | 1,049 | 264,885 | ||||||||||||
Other regulatory charges (credits) - net
|
(5,111 | ) | - | - | (5,111 | ) | ||||||||||
Total
|
1,615,625 | 424,888 | (10,196 | ) | 2,030,317 | |||||||||||
OPERATING INCOME
|
321,993 | 185,258 | 3,640 | 510,891 | ||||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
17,289 | - | - | 17,289 | ||||||||||||
Interest and investment income
|
36,595 | 30,898 | (40,746 | ) | 26,747 | |||||||||||
Miscellaneous - net
|
(4,502 | ) | (3,237 | ) | (1,660 | ) | (9,399 | ) | ||||||||
Total
|
49,382 | 27,661 | (42,406 | ) | 34,637 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
121,052 | 4,745 | 10,337 | 136,134 | ||||||||||||
Allowance for borrowed funds used during construction
|
(8,534 | ) | - | - | (8,534 | ) | ||||||||||
Total
|
112,518 | 4,745 | 10,337 | 127,600 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
258,857 | 208,174 | (49,103 | ) | 417,928 | |||||||||||
Income taxes
|
90,204 | 84,941 | (10,895 | ) | 164,250 | |||||||||||
CONSOLIDATED NET INCOME
|
168,653 | 123,233 | (38,208 | ) | 253,678 | |||||||||||
Preferred dividend requirements of subsidiaries
|
4,332 | 683 | - | 5,015 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 164,321 | $ | 122,550 | $ | (38,208 | ) | $ | 248,663 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 0.92 | $ | 0.68 | $ | (0.21 | ) | $ | 1.39 | |||||||
DILUTED
|
$ | 0.91 | $ | 0.68 | $ | (0.21 | ) | $ | 1.38 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
178,834,342 | |||||||||||||||
DILUTED
|
180,083,830 | |||||||||||||||
*Totals may not foot due to rounding.
|
||||||||||||||||
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Three Months Ended March 31, 2012 vs. 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | (80,863 | ) | $ | - | $ | (195 | ) | $ | (81,058 | ) | |||||
Natural gas
|
(25,115 | ) | - | - | (25,115 | ) | ||||||||||
Competitive businesses
|
- | (49,895 | ) | (1,481 | ) | (51,376 | ) | |||||||||
Total
|
(105,978 | ) | (49,895 | ) | (1,676 | ) | (157,549 | ) | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
6,281 | 24,979 | (116 | ) | 31,144 | |||||||||||
Purchased power
|
(75,354 | ) | (1,893 | ) | (405 | ) | (77,652 | ) | ||||||||
Nuclear refueling outage expenses
|
226 | (328 | ) | - | (101 | ) | ||||||||||
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
Other operation and maintenance
|
42,026 | 23,598 | 264 | 65,887 | ||||||||||||
Decommissioning
|
1,069 | 1,569 | - | 2,638 | ||||||||||||
Taxes other than income taxes
|
3,508 | 8,357 | 71 | 11,936 | ||||||||||||
Depreciation and amortization
|
7,481 | 7,840 | 10 | 15,330 | ||||||||||||
Other regulatory charges (credits )- net
|
5,493 | - | - | 5,493 | ||||||||||||
Total
|
(9,270 | ) | 419,646 | (176 | ) | 410,199 | ||||||||||
OPERATING INCOME
|
(96,708 | ) | (469,541 | ) | (1,500 | ) | (567,748 | ) | ||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
7,018 | - | - | 7,018 | ||||||||||||
Interest and investment income
|
6,678 | 9,395 | (1,828 | ) | 14,245 | |||||||||||
Miscellaneous - net
|
(3,361 | ) | (4,544 | ) | (685 | ) | (8,591 | ) | ||||||||
Total
|
10,335 | 4,851 | (2,513 | ) | 12,672 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
6,422 | 2,403 | 1,786 | 10,611 | ||||||||||||
Allowance for borrowed funds used during construction
|
(857 | ) | - | - | (857 | ) | ||||||||||
Total
|
5,565 | 2,403 | 1,786 | 9,754 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
(91,938 | ) | (467,093 | ) | (5,799 | ) | (564,830 | ) | ||||||||
Income taxes
|
9,503 | (175,348 | ) | 1,433 | (164,412 | ) | ||||||||||
CONSOLIDATED NET INCOME
|
(101,441 | ) | (291,745 | ) | (7,232 | ) | (400,418 | ) | ||||||||
Preferred dividend requirements of subsidiaries
|
- | (683 | ) | 611 | (72 | ) | ||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | (101,441 | ) | $ | (291,062 | ) | $ | (7,843 | ) | $ | (400,346 | ) | ||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | (0.57 | ) | $ | (1.63 | ) | $ | (0.05 | ) | $ | (2.25 | ) | ||||
DILUTED
|
$ | (0.56 | ) | $ | (1.63 | ) | $ | (0.05 | ) | $ | (2.24 | ) | ||||
*Totals may not foot due to rounding.
|
||||||||||||||||
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Twelve Months Ended March 31, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 8,595,145 | $ | - | $ | (2,686 | ) | $ | 8,592,459 | |||||||
Natural gas
|
140,704 | - | - | 140,704 | ||||||||||||
Competitive businesses
|
- | 2,363,877 | (25,517 | ) | 2,338,361 | |||||||||||
Total
|
8,735,849 | 2,363,877 | (28,203 | ) | 11,071,524 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
2,189,840 | 334,896 | (878 | ) | 2,523,859 | |||||||||||
Purchased power
|
1,472,923 | 57,078 | (42,686 | ) | 1,487,315 | |||||||||||
Nuclear refueling outage expenses
|
105,227 | 150,290 | - | 255,516 | ||||||||||||
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
Other operation and maintenance
|
1,992,590 | 929,057 | 12,000 | 2,933,646 | ||||||||||||
Decommissioning
|
110,213 | 83,019 | - | 193,233 | ||||||||||||
Taxes other than income taxes
|
435,127 | 111,317 | 1,517 | 547,961 | ||||||||||||
Depreciation and amortization
|
925,933 | 187,028 | 4,571 | 1,117,532 | ||||||||||||
Other regulatory charges (credits) - net
|
211,452 | - | - | 211,452 | ||||||||||||
Total
|
7,443,305 | 2,208,209 | (25,476 | ) | 9,626,038 | |||||||||||
Gain on sale of business
|
- | - | - | - | ||||||||||||
OPERATING INCOME
|
1,292,544 | 155,668 | (2,727 | ) | 1,445,486 | |||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
91,323 | - | - | 91,323 | ||||||||||||
Interest and investment income
|
165,416 | 145,762 | (167,939 | ) | 143,239 | |||||||||||
Miscellaneous - net
|
(28,739 | ) | (28,181 | ) | (10,940 | ) | (67,861 | ) | ||||||||
Total
|
228,000 | 117,581 | (178,879 | ) | 166,701 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
500,055 | 23,037 | 39,039 | 562,131 | ||||||||||||
Allowance for borrowed funds used during construction
|
(38,750 | ) | - | - | (38,750 | ) | ||||||||||
Total
|
461,305 | 23,037 | 39,039 | 523,381 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
1,059,239 | 250,212 | (220,645 | ) | 1,088,806 | |||||||||||
Income taxes
|
36,814 | 50,111 | 34,927 | 121,852 | ||||||||||||
CONSOLIDATED NET INCOME
|
1,022,425 | 200,101 | (255,572 | ) | 966,954 | |||||||||||
Preferred dividend requirements of subsidiaries
|
17,329 | 2,562 | 970 | 20,861 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 1,005,096 | $ | 197,539 | $ | (256,542 | ) | $ | 946,093 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 5.68 | $ | 1.12 | $ | (1.45 | ) | $ | 5.35 | |||||||
DILUTED
|
$ | 5.65 | $ | 1.11 | $ | (1.44 | ) | $ | 5.32 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
176,944,489 | |||||||||||||||
DILUTED
|
177,975,165 | |||||||||||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Twelve Months Ended March 31, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 8,602,367 | $ | - | $ | (2,762 | ) | $ | 8,599,605 | |||||||
Natural gas
|
172,754 | - | - | 172,754 | ||||||||||||
Competitive businesses
|
- | 2,515,903 | (18,824 | ) | 2,497,079 | |||||||||||
Total
|
8,775,121 | 2,515,903 | (21,586 | ) | 11,269,438 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
2,177,367 | 291,463 | (1,224 | ) | 2,467,606 | |||||||||||
Purchased power
|
1,516,815 | 63,798 | (33,482 | ) | 1,547,131 | |||||||||||
Nuclear refueling outage expenses
|
107,075 | 150,744 | - | 257,819 | ||||||||||||
Asset impairment
|
- | - | - | - | ||||||||||||
Other operation and maintenance
|
1,961,925 | 996,487 | (35,752 | ) | 2,922,661 | |||||||||||
Decommissioning
|
106,000 | 109,426 | - | 215,426 | ||||||||||||
Taxes other than income taxes
|
425,132 | 98,424 | 564 | 524,120 | ||||||||||||
Depreciation and amortization
|
895,185 | 165,898 | 4,493 | 1,065,575 | ||||||||||||
Other regulatory charges (credits) - net
|
11,718 | - | - | 11,718 | ||||||||||||
Total
|
7,201,217 | 1,876,240 | (65,401 | ) | 9,012,056 | |||||||||||
Gain on sale of business
|
- | 44,173 | - | 44,173 | ||||||||||||
OPERATING INCOME
|
1,573,904 | 683,836 | 43,815 | 2,301,555 | ||||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
63,374 | - | - | 63,374 | ||||||||||||
Interest and investment income
|
181,260 | 151,404 | (170,049 | ) | 162,615 | |||||||||||
Miscellaneous - net
|
(24,328 | ) | (22,458 | ) | (10,215 | ) | (57,001 | ) | ||||||||
Total
|
220,306 | 128,946 | (180,264 | ) | 168,988 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
519,860 | 24,619 | 22,603 | 567,082 | ||||||||||||
Allowance for borrowed funds used during construction
|
(35,512 | ) | - | - | (35,511 | ) | ||||||||||
Total
|
484,348 | 24,619 | 22,603 | 531,571 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
1,309,862 | 788,163 | (159,052 | ) | 1,938,972 | |||||||||||
Income taxes
|
454,461 | 266,050 | (86,707 | ) | 633,803 | |||||||||||
CONSOLIDATED NET INCOME
|
855,401 | 522,113 | (72,345 | ) | 1,305,169 | |||||||||||
Preferred dividend requirements of subsidiaries
|
17,331 | 2,732 | - | 20,063 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 838,070 | $ | 519,381 | $ | (72,345 | ) | $ | 1,285,106 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 4.57 | $ | 2.83 | $ | (0.39 | ) | $ | 7.01 | |||||||
DILUTED
|
$ | 4.53 | $ | 2.80 | $ | (0.39 | ) | $ | 6.94 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
183,453,875 | |||||||||||||||
DILUTED
|
185,046,811 | |||||||||||||||
*Totals may not foot due to rounding.
|
||||||||||||||||
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Twelve Months Ended March 31, 2012 vs. 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | (7,222 | ) | $ | - | $ | 76 | $ | (7,146 | ) | ||||||
Natural gas
|
(32,050 | ) | - | - | (32,050 | ) | ||||||||||
Competitive businesses
|
- | (152,026 | ) | (6,693 | ) | (158,718 | ) | |||||||||
Total
|
(39,272 | ) | (152,026 | ) | (6,617 | ) | (197,914 | ) | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
12,473 | 43,433 | 346 | 56,253 | ||||||||||||
Purchased power
|
(43,892 | ) | (6,720 | ) | (9,204 | ) | (59,816 | ) | ||||||||
Nuclear refueling outage expenses
|
(1,848 | ) | (454 | ) | - | (2,303 | ) | |||||||||
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
Other operation and maintenance
|
30,665 | (67,430 | ) | 47,752 | 10,985 | |||||||||||
Decommissioning
|
4,213 | (26,407 | ) | - | (22,193 | ) | ||||||||||
Taxes other than income taxes
|
9,995 | 12,893 | 953 | 23,841 | ||||||||||||
Depreciation and amortization
|
30,748 | 21,130 | 78 | 51,957 | ||||||||||||
Other regulatory charges (credits )- net
|
199,734 | - | - | 199,734 | ||||||||||||
Total
|
242,088 | 331,969 | 39,925 | 613,982 | ||||||||||||
Gain on sale of business
|
- | (44,173 | ) | - | (44,173 | ) | ||||||||||
OPERATING INCOME
|
(281,360 | ) | (528,168 | ) | (46,542 | ) | (856,069 | ) | ||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
27,949 | - | - | 27,949 | ||||||||||||
Interest and investment income
|
(15,844 | ) | (5,642 | ) | 2,110 | (19,376 | ) | |||||||||
Miscellaneous - net
|
(4,411 | ) | (5,723 | ) | (725 | ) | (10,860 | ) | ||||||||
Total
|
7,694 | (11,365 | ) | 1,385 | (2,287 | ) | ||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
(19,805 | ) | (1,582 | ) | 16,436 | (4,951 | ) | |||||||||
Allowance for borrowed funds used during construction
|
(3,238 | ) | - | - | (3,239 | ) | ||||||||||
Total
|
(23,043 | ) | (1,582 | ) | 16,436 | (8,190 | ) | |||||||||
INCOME BEFORE INCOME TAXES
|
(250,623 | ) | (537,951 | ) | (61,593 | ) | (850,166 | ) | ||||||||
Income taxes
|
(417,647 | ) | (215,939 | ) | 121,634 | (511,951 | ) | |||||||||
CONSOLIDATED NET INCOME
|
167,024 | (322,012 | ) | (183,227 | ) | (338,215 | ) | |||||||||
Preferred dividend requirements of subsidiaries
|
(2 | ) | (170 | ) | 970 | 798 | ||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 167,026 | $ | (321,842 | ) | $ | (184,197 | ) | $ | (339,013 | ) | |||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 1.11 | $ | (1.71 | ) | $ | (1.06 | ) | $ | (1.66 | ) | |||||
DILUTED
|
$ | 1.12 | $ | (1.69 | ) | $ | (1.05 | ) | $ | (1.62 | ) | |||||
*Totals may not foot due to rounding.
|
||||||||||||||||
Entergy Corporation
|
||||||||||||
Consolidated Cash Flow Statement
|
||||||||||||
Three Months Ended March 31, 2012 vs. 2011
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
(Unaudited)
|
||||||||||||
2012
|
2011
|
Variance
|
||||||||||
OPERATING ACTIVITIES
|
||||||||||||
Consolidated net income (loss)
|
$ | (146,740 | ) | $ | 253,678 | $ | (400,418 | ) | ||||
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
provided by operating activities:
|
||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
450,009 | 422,411 | 27,598 | |||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
38,858 | 173,784 | (134,926 | ) | ||||||||
Asset impairment
|
355,524 | - | 355,524 | |||||||||
Changes in working capital:
|
||||||||||||
Receivables
|
156,202 | 102,711 | 53,491 | |||||||||
Fuel inventory
|
(20,213 | ) | (12,508 | ) | (7,705 | ) | ||||||
Accounts payable
|
(145,599 | ) | (154,398 | ) | 8,799 | |||||||
Prepaid taxes and taxes accrued
|
(89,583 | ) | (63,918 | ) | (25,665 | ) | ||||||
Interest accrued
|
(32,194 | ) | (67,978 | ) | 35,784 | |||||||
Deferred fuel
|
77,405 | (66,548 | ) | 143,953 | ||||||||
Other working capital accounts
|
(34,753 | ) | (102,294 | ) | 67,541 | |||||||
Changes in provisions for estimated losses
|
(15,030 | ) | (779 | ) | (14,251 | ) | ||||||
Changes in other regulatory assets
|
60,857 | 48,889 | 11,968 | |||||||||
Changes in pensions and other postretirement liabilities
|
(4,764 | ) | (190,958 | ) | 186,194 | |||||||
Other
|
(49,479 | ) | (18,991 | ) | (30,488 | ) | ||||||
Net cash flow provided by operating activities
|
600,500 | 323,101 | 277,399 | |||||||||
INVESTING ACTIVITIES
|
||||||||||||
Construction/capital expenditures
|
(563,539 | ) | (486,561 | ) | (76,978 | ) | ||||||
Allowance for equity funds used during construction
|
25,448 | 17,289 | 8,159 | |||||||||
Nuclear fuel purchases
|
(201,059 | ) | (300,975 | ) | 99,916 | |||||||
Changes in securitization account
|
940 | 6,360 | (5,420 | ) | ||||||||
NYPA value sharing payment
|
(72,000 | ) | (72,000 | ) | - | |||||||
Payments to storm reserve escrow account
|
(1,483 | ) | (1,736 | ) | 253 | |||||||
Receipts from storm reserve escrow account
|
861 | - | 861 | |||||||||
Decrease (increase) in other investments
|
93,786 | (21,212 | ) | 114,998 | ||||||||
Proceeds from nuclear decommissioning trust fund sales
|
535,551 | 492,682 | 42,869 | |||||||||
Investment in nuclear decommissioning trust funds
|
(567,780 | ) | (530,672 | ) | (37,108 | ) | ||||||
Net cash flow used in investing activities
|
(749,275 | ) | (896,825 | ) | 147,550 | |||||||
FINANCING ACTIVITIES
|
||||||||||||
Proceeds from the issuance of:
|
||||||||||||
Long-term debt
|
1,034,945 | 411,444 | 623,501 | |||||||||
Preferred stock
|
51,000 | - | 51,000 | |||||||||
Common stock and treasury stock
|
32,826 | 12,280 | 20,546 | |||||||||
Retirement of long-term debt
|
(859,648 | ) | (278,084 | ) | (581,564 | ) | ||||||
Repurchase of common stock
|
- | (54,404 | ) | 54,404 | ||||||||
Changes in credit borrowings - net
|
32,782 | 68,244 | (35,462 | ) | ||||||||
Dividends paid:
|
||||||||||||
Common stock
|
(146,674 | ) | (148,678 | ) | 2,004 | |||||||
Preferred stock
|
(5,582 | ) | (5,015 | ) | (567 | ) | ||||||
Net cash flow provided by financing activities
|
139,649 | 5,787 | 133,862 | |||||||||
Effect of exchange rates on cash and cash equivalents
|
(310 | ) | (298 | ) | (12 | ) | ||||||
Net increase (decrease) in cash and cash equivalents
|
(9,436 | ) | (568,235 | ) | 558,799 | |||||||
Cash and cash equivalents at beginning of period
|
694,438 | 1,294,472 | (600,034 | ) | ||||||||
Cash and cash equivalents at end of period
|
$ | 685,002 | $ | 726,237 | $ | (41,235 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash paid (received) during the period for:
|
||||||||||||
Interest - net of amount capitalized
|
$ | 134,655 | $ | 164,563 | $ | (29,908 | ) | |||||
Income taxes
|
$ | 35,992 | $ | (4,380 | ) | $ | 40,372 | |||||
Entergy Corporation
|
||||||||||||
Consolidated Cash Flow Statement
|
||||||||||||
Twelve Months Ended March 31, 2012 vs. 2011
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
(Unaudited)
|
||||||||||||
2012
|
2011
|
Variance
|
||||||||||
OPERATING ACTIVITIES
|
||||||||||||
Consolidated net income
|
$ | 966,954 | $ | 1,305,169 | $ | (338,215 | ) | |||||
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
provided by operating activities:
|
||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
1,773,053 | 1,704,310 | 68,743 | |||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
(414,955 | ) | 759,238 | (1,174,193 | ) | |||||||
Asset impairment
|
355,524 | - | 355,524 | |||||||||
Gain on sale of business
|
- | (44,173 | ) | 44,173 | ||||||||
Changes in working capital:
|
||||||||||||
Receivables
|
81,582 | (40,759 | ) | 122,341 | ||||||||
Fuel inventory
|
(2,312 | ) | (16,849 | ) | 14,537 | |||||||
Accounts payable
|
(123,171 | ) | 141,487 | (264,658 | ) | |||||||
Prepaid taxes and taxes accrued
|
554,377 | (165,868 | ) | 720,245 | ||||||||
Interest accrued
|
1,612 | (13,651 | ) | 15,263 | ||||||||
Deferred fuel
|
88,267 | (58,603 | ) | 146,870 | ||||||||
Other working capital accounts
|
109,416 | (297,185 | ) | 406,601 | ||||||||
Changes in provisions for estimated losses
|
(25,337 | ) | 300,375 | (325,712 | ) | |||||||
Changes in other regulatory assets
|
(661,276 | ) | 454,545 | (1,115,821 | ) | |||||||
Changes in pensions and other postretirement liabilities
|
1,148,655 | (230,918 | ) | 1,379,573 | ||||||||
Other
|
(446,173 | ) | (222,201 | ) | (223,972 | ) | ||||||
Net cash flow provided by operating activities
|
3,406,216 | 3,574,917 | (168,701 | ) | ||||||||
INVESTING ACTIVITIES
|
||||||||||||
Construction/capital expenditures
|
(2,117,005 | ) | (2,013,371 | ) | (103,634 | ) | ||||||
Allowance for equity funds used during construction
|
94,411 | 63,374 | 31,037 | |||||||||
Nuclear fuel purchases
|
(541,577 | ) | (643,350 | ) | 101,773 | |||||||
Payment for purchase of plant
|
(646,137 | ) | - | (646,137 | ) | |||||||
Proceeds from sale of assets and businesses
|
6,531 | 218,496 | (211,965 | ) | ||||||||
Insurance proceeds received for property damages
|
- | 7,894 | (7,894 | ) | ||||||||
Changes in securitization account
|
(12,680 | ) | (1,645 | ) | (11,035 | ) | ||||||
NYPA value sharing payment
|
(72,000 | ) | (72,000 | ) | - | |||||||
Payments to storm reserve escrow account
|
(6,172 | ) | (296,741 | ) | 290,569 | |||||||
Receipts from storm reserve escrow account
|
861 | - | 861 | |||||||||
Decrease (increase) in other investments
|
103,375 | (84,356 | ) | 187,731 | ||||||||
Proceeds from nuclear decommissioning trust fund sales
|
1,403,215 | 2,328,284 | (925,069 | ) | ||||||||
Investment in nuclear decommissioning trust funds
|
(1,512,125 | ) | (2,462,185 | ) | 950,060 | |||||||
Net cash flow used in investing activities
|
(3,299,303 | ) | (2,955,600 | ) | (343,703 | ) | ||||||
FINANCING ACTIVITIES
|
||||||||||||
Proceeds from the issuance of:
|
||||||||||||
Long-term debt
|
3,614,382 | 4,239,593 | (625,211 | ) | ||||||||
Preferred stock
|
51,000 | - | 51,000 | |||||||||
Common stock and treasury stock
|
66,731 | 57,365 | 9,366 | |||||||||
Retirement of long-term debt
|
(3,018,936 | ) | (4,355,922 | ) | 1,336,986 | |||||||
Repurchase of common stock
|
(180,228 | ) | (932,980 | ) | 752,752 | |||||||
Redemption of subsidiary common and preferred stock
|
(30,308 | ) | - | (30,308 | ) | |||||||
Changes in credit borrowings - net
|
(41,963 | ) | 73,100 | (115,063 | ) | |||||||
Dividends paid:
|
||||||||||||
Common stock
|
(587,601 | ) | (610,640 | ) | 23,039 | |||||||
Preferred stock
|
(21,500 | ) | (20,063 | ) | (1,437 | ) | ||||||
Net cash flow used in financing activities
|
(148,423 | ) | (1,549,547 | ) | 1,401,124 | |||||||
Effect of exchange rates on cash and cash equivalents
|
275 | (567 | ) | 842 | ||||||||
Net increase (decrease) in cash and cash equivalents
|
(41,235 | ) | (930,797 | ) | 889,562 | |||||||
Cash and cash equivalents at beginning of period
|
726,237 | 1,657,034 | (930,797 | ) | ||||||||
Cash and cash equivalents at end of period
|
$ | 685,002 | $ | 726,237 | $ | (41,235 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash paid (received) during the period for:
|
||||||||||||
Interest - net of amount capitalized
|
$ | 502,363 | $ | 568,196 | $ | (65,833 | ) | |||||
Income taxes
|
$ | 38,330 | $ | 29,149 | $ | 9,181 | ||||||
Entergy
639 Loyola Avenue
New Orleans, LA 70113
|
|
|
News
Release
|
Date: | April 26, 2012 | |
For Release: | Immediately | |
Contact:
|
Michael Burns (News Media)
(504) 576-4238
mburns@entergy.com
|
Paula Waters (Investor Relations)
(504) 576-4380
pwater1@entergy.com
|
Consolidated Earnings – Reconciliation of GAAP* to Non-GAAP Measures
|
||||
First Quarter 2012 vs. 2011
|
||||
(Per share in U.S. $)
|
||||
First Quarter
|
||||
2012
|
2011
|
Change
|
||
As-Reported Earnings
|
(0.86)
|
1.38
|
(2.24)
|
|
Less Special Items
|
(1.30)
|
-
|
(1.30)
|
|
Operational Earnings
|
0.44
|
1.38
|
(0.94)
|
·
|
Utility results were lower due primarily to higher income tax expense associated with the write off of a regulatory asset, lower net revenue and higher non-fuel operation and maintenance expense.
|
·
|
Entergy Wholesale Commodities earnings decreased due to lower net revenue and higher non-fuel operation and maintenance expense.
|
·
|
Parent & Other results declined due to several individually insignificant items.
|
·
|
The U.S. Court of Appeals for the Federal Circuit issued its decision on the appeal of Indian Point 1 and 2’s damages claim for breach of the spent fuel disposal contract. Assuming no more appeals, Entergy Wholesale Commodities could receive funds within the next several months.
|
·
|
Entergy successfully executed $4.15 billion of credit facilities for the parent company ($3.5 billion) and four of the Utility operating companies.
|
·
|
Entergy Vermont Yankee was named one of the Best Places to Work in Vermont for a third year.
|
·
|
Edison Electric Institute honored Entergy with Emergency Recovery and Emergency Assistance awards. This is the 14th consecutive year for Entergy to receive an EEI storm restoration award.
|
·
|
The write-off of a regulatory asset discussed in the Utility results section of this release,
|
·
|
Higher pension expense resulting from lower-than-planned pension discount rate and other updated pension assumptions,
|
·
|
Lower market energy prices for EWC’s open position,
|
·
|
Significant unfavorable weather in the first quarter of 2012, and
|
·
|
Opportunities identified to partially offset these challenges.
|
·
|
Utility net income: 6 to 8 percent compound annual net income growth rate over the 2010 – 2014 horizon (2009 base year).
|
·
|
Entergy Wholesale Commodities results: Revenue projections through 2014 will experience increased volatility due to commodity market activities – one of the most important fundamental drivers for this business. At current sold and forward prices with its existing asset portfolio and in-the-money hedges that will roll off in the coming few years, Entergy Wholesale Commodities is expected to deliver declining operational adjusted EBITDA for the period through 2014 compared to 2010. However, Entergy Wholesale Commodities offers a valuable long-term option from the potential positive effects of ongoing economic growth (driving increased load, market heat rates, capacity prices and natural gas prices), aging and unprofitable unit retirements (driving market heat rate expansion and capacity price increases), new environmental legislation and/or enforcement of additional environmental regulations.
|
·
|
Corporate results: Results will vary depending upon factors including future effective income tax and interest rates and the amount / timing of share repurchases.
|
·
|
A balanced capital investment / return program: Entergy continues to see value-added investment opportunities at the Utility in the coming years, as well as an investment outlook at Entergy Wholesale Commodities that supports continued safe, secure and reliable operations and opportunistic investments. Entergy aspires to fund this capital program without issuing traditional common equity, while maintaining a competitive capital return program. Given the company’s financial profile with a mix of utility and non-utility businesses, return of capital is expected to be provided similar to the past through a combination of common stock dividends and share repurchases. Absent other attractive investment opportunities, capital deployment through dividends and share repurchases could total as much as $4 – $5 billion from 2010 – 2014 under the current long-term business outlook. The amount of share repurchases may vary as a result of material changes in business results, capital spending or new investment opportunities.
|
·
|
Strong liquidity.
|
·
|
Solid credit metrics that support ready access to capital on reasonable terms.
|
·
|
Entergy will spin off its electric transmission business, or “Transco,” to Entergy’s shareholders in the form of a tax-free spin-off.
|
·
|
After the spin-off, the newly formed Transco will merge with a newly-formed subsidiary of ITC.
|
·
|
Prior to the merger, ITC expects to effectuate a $700 million recapitalization, currently anticipated to take the form of a one-time special dividend to its shareholders.
|
·
|
The merger will result in Entergy shareholders receiving 50.1 percent of the shares of pro forma ITC in exchange for their shares of Transco; existing ITC shareholders will own the remaining 49.9 percent of the combined company.
|
·
|
Change of control of transmission assets
|
·
|
Affiliate transaction approvals related to steps in the spin / merge
|
·
|
Authorization to incur debt in some jurisdictions
|
·
|
Change of control of transmission assets (203 filing)
|
·
|
Acceptance of jurisdictional agreements (205 filing)
|
·
|
Authorization to assume debt / issue securities (204 filings)
|
·
|
Changes to System Agreement to remove provisions related to transmission planning and equalization
|
·
|
ITC filing to establish new rate tariffs for the ITC operating companies
|
·
|
Pre-merger notification to review potential antitrust and competition issues
|
·
|
Private letter ruling substantially to the effect that certain requirements for a tax-free treatment of the distribution of Transco are met
|
·
|
ITC Form S-4 and Proxy Statement (including audited Transco financial statements and disclosures), and
|
·
|
Transco Registration Statement
|
·
|
Approval required for:
|
–
|
Merger,
|
–
|
Issuance of shares to ITC shareholders, and
|
–
|
Amendment to ITC charter to increase authorized number of shares
|
Appendix A: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
First Quarter 2012 vs. 2011
|
|||
First Quarter
|
|||
2012
|
2011
|
Change
|
|
As-Reported
|
|||
Utility
|
0.35
|
0.91
|
(0.56)
|
Entergy Wholesale Commodities
|
(0.95)
|
0.68
|
(1.63)
|
Parent & Other
|
(0.26)
|
(0.21)
|
(0.05)
|
Consolidated As-Reported Earnings
|
(0.86)
|
1.38
|
(2.24)
|
Less Special Items
|
|||
Utility
|
(0.03)
|
-
|
(0.03)
|
Entergy Wholesale Commodities
|
(1.26)
|
-
|
(1.26)
|
Parent & Other
|
(0.01)
|
-
|
(0.01)
|
Consolidated Special Items
|
(1.30)
|
-
|
(1.30)
|
Operational
|
|||
Utility
|
0.38
|
0.91
|
(0.53)
|
Entergy Wholesale Commodities
|
0.31
|
0.68
|
(0.37)
|
Parent & Other
|
(0.25)
|
(0.21)
|
(0.04)
|
Consolidated Operational Earnings
|
0.44
|
1.38
|
(0.94)
|
Appendix B: Reconciliation of Entergy Wholesale Commodities GAAP Net Income to
Non-GAAP Operational Adjusted EBITDA
|
||||||
First Quarter 2012 vs. 2011
|
||||||
($ in millions)
|
||||||
First Quarter
|
||||||
2012
|
2011
|
Change
|
||||
Net Income
|
(169)
|
123
|
(292)
|
|||
Add back: interest expense
|
7
|
5
|
2
|
|||
Add back: income tax expense
|
(90)
|
85
|
(175)
|
|||
Add back: depreciation and amortization
|
51
|
43
|
8
|
|||
Subtract: interest and investment income
|
41
|
31
|
10
|
|||
Add back: decommissioning expense
|
30
|
28
|
2
|
|||
Adjusted EBITDA
|
(212)
|
253
|
(465)
|
|||
Add back: special item for asset impairment
|
356
|
-
|
356
|
|||
Operational Adjusted EBITDA
|
144
|
253
|
(109)
|
|||
Entergy Corporation
|
||||||||
Consolidated Income Statement
|
||||||||
Three Months Ended March 31
|
||||||||
(in thousands)
|
||||||||
2012
|
2011
|
|||||||
(unaudited)
|
||||||||
Operating Revenues:
|
||||||||
Electric
|
$ | 1,784,841 | $ | 1,865,899 | ||||
Natural gas
|
46,008 | 71,123 | ||||||
Competitive businesses
|
552,810 | 604,186 | ||||||
Total
|
2,383,659 | 2,541,208 | ||||||
Operating Expenses:
|
||||||||
Operation and maintenance:
|
||||||||
Fuel, fuel-related expenses, and gas purchased for resale
|
538,837 | 507,693 | ||||||
Purchased power
|
284,966 | 362,618 | ||||||
Nuclear refueling outage expenses
|
63,884 | 63,985 | ||||||
Asset impairment
|
355,524 | - | ||||||
Other operation and maintenance
|
721,635 | 655,748 | ||||||
Decommissioning
|
57,903 | 55,265 | ||||||
Taxes other than income taxes
|
137,170 | 125,234 | ||||||
Depreciation and amortization
|
280,215 | 264,885 | ||||||
Other regulatory charges (credits) – net
|
382 | (5,111 | ) | |||||
Total
|
2,440,516 | 2,030,317 | ||||||
Operating Income (Loss)
|
(56,857 | ) | 510,891 | |||||
Other Income (Deductions):
|
||||||||
Allowance for equity funds used during construction
|
24,307 | 17,289 | ||||||
Interest and investment income
|
40,992 | 26,747 | ||||||
Miscellaneous – net
|
(17,990 | ) | (9,399 | ) | ||||
Total
|
47,309 | 34,637 | ||||||
Interest Expense:
|
||||||||
Interest expense
|
146,745 | 136,134 | ||||||
Allowance for borrowed funds used during construction
|
(9,391 | ) | (8,534 | ) | ||||
Total
|
137,354 | 127,600 | ||||||
Income (Loss) Before Income Taxes
|
(146,902 | ) | 417,928 | |||||
Income Taxes
|
(162 | ) | 164,250 | |||||
Consolidated Net Income (Loss)
|
(146,740 | ) | 253,678 | |||||
Preferred Dividend Requirements of Subsidiaries
|
4,943 | 5,015 | ||||||
Net Income (Loss) Attributable to Entergy Corporation
|
$ | (151,683 | ) | $ | 248,663 | |||
Earnings (Loss) Per Average Common Share
|
||||||||
Basic
|
$ | (0.86 | ) | $ | 1.39 | |||
Diluted
|
$ | (0.86 | ) | $ | 1.38 | |||
Average Number of Common Shares Outstanding – Basic
|
176,865,363 | 178,834,342 | ||||||
Average Number of Common Shares Outstanding – Diluted
|
177,388,045 | 180,083,830 |
Entergy Corporation
|
||||||||||
Utility Electric Energy Sales & Customers
|
||||||||||
Three Months Ended March 31
|
||||||||||
2012
|
2011
|
%
Change
|
%
Weather-Adjusted
|
|||||||
(Millions of kWh)
|
||||||||||
Electric Energy Sales:
|
||||||||||
Residential
|
7,760
|
9,042
|
(14.2)
|
2.6
|
||||||
Commercial
|
6,414
|
6,450
|
(0.6)
|
2.7
|
||||||
Governmental
|
578
|
582
|
(0.7)
|
(1.0)
|
||||||
Industrial
|
9,958
|
9,516
|
4.6
|
4.6
|
||||||
Total to Ultimate Customers
|
24,710
|
25,590
|
(3.4)
|
3.3
|
||||||
Wholesale
|
732
|
947
|
(22.7)
|
|||||||
Total Sales
|
25,442
|
26,537
|
(4.1)
|
|||||||
March 31
|
||||||||||
2012
|
2011
|
%
Change
|
||||||||
Electric Customers (End of period):
|
||||||||||
Residential
|
2,373,715
|
2,362,024
|
0.5
|
|||||||
Commercial
|
338,086
|
335,419
|
0.8
|
|||||||
Governmental
|
16,589
|
16,302
|
1.8
|
|||||||
Industrial
|
38,314
|
38,887
|
(1.5)
|
|||||||
Total Ultimate Customers
|
2,766,704
|
2,752,632
|
0.5
|
|||||||
Wholesale | 32 | 28 | 14.3 | |||||||
Total Customers
|
2,766,736
|
2,752,660
|
0.5
|