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Risk Management And Fair Values (Tables)
 9 Months Ended
Sep. 30, 2015
Fair Values Of Derivative Instruments
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of September 30, 2015 are shown in the table below.  Certain investments, including those not designated as hedging instruments, are subject to master netting arrangements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Offset (b)
 
Net (c) (d)
 
Business
 
 
 
 
(In Millions)
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$122
 
($15)
 
$107
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$48
 
($4)
 
$44
 
Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities
(current portion)
 
$6
 
($6)
 
$—
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$4
 
($4)
 
$—
 
Entergy Wholesale Commodities
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$19
 
($4)
 
$15
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$6
 
($3)
 
$3
 
Entergy Wholesale Commodities
FTRs
 
Prepayments and other
 
$48
 
($1)
 
$47
 
Utility and Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities(current portion)
 
$19
 
($13)
 
$6
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$3
 
($3)
 
$—
 
Entergy Wholesale Commodities
Natural gas swaps
 
Other current liabilities
 
$10
 
$—
 
$10
 
Utility

The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2014 are shown in the table below.  Certain investments, including those not designated as hedging instruments, are subject to master netting arrangements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Offset (b)
 
Net (c) (d)
 
Business
 
 
 
 
(In Millions)
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$149
 
($53)
 
$96
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$48
 
$—
 
$48
 
Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$24
 
($24)
 
$—
 
Entergy Wholesale Commodities
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$97
 
($25)
 
$72
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$9
 
($8)
 
$1
 
Entergy Wholesale Commodities
FTRs
 
Prepayments and other
 
$50
 
($3)
 
$47
 
Utility and Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$57
 
($55)
 
$2
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$8
 
($8)
 
$—
 
Entergy Wholesale Commodities
Natural gas swaps
 
Other current liabilities
 
$20
 
$—
 
$20
 
Utility
Derivative Instruments Designated As Cash Flow Hedges On Consolidated Statements Of Income

The effect of Entergy’s derivative instruments designated as cash flow hedges on the consolidated statements of operations for the three months ended September 30, 2015 and 2014 is as follows:
Instrument
 
Amount of gain
recognized in other
comprehensive income
 
Income Statement location
 
Amount of gain
reclassified from
AOCI into income (a)
 
 
(In Millions)
 
 
 
(In Millions)
2015
 
 
 
 
 
 
Electricity swaps and options
 
$49
 
Competitive businesses operating revenues
 
$86
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Electricity swaps and options
 
$8
 
Competitive businesses operating revenues
 
$13

(a)    Before taxes of $30 million and $5 million for the three months ended September 30, 2015 and 2014, respectively

The effect of Entergy’s derivative instruments designated as cash flow hedges on the consolidated statements of operations for the nine months ended September 30, 2015 and 2014 is as follows:
Instrument
 
Amount of gain (loss) recognized in other
comprehensive income
 
Income Statement location
 
Amount of gain (loss)
 reclassified from
AOCI into income (a)

 
(In Millions)
 
 
 
(In Millions)
2015
 
 
 
 
 
 
Electricity swaps and options
 
$154
 
Competitive businesses operating revenues
 
$177
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Electricity swaps and options
 
($177)
 
Competitive businesses operating revenues
 
($182)


(a)
Before taxes (benefit) of $61 million and ($64) million for the nine months ended September 30, 2015 and 2014, respectively
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effect of Entergy’s derivative instruments not designated as hedging instruments on the consolidated statements of operations for the three months ended September 30, 2015 and 2014 is as follows:
Instrument
 
Amount of loss
recognized in AOCI
 
Income Statement
location
 
Amount of gain (loss)
recorded in the income statement
 
 
(In Millions)
 
 
 
(In Millions)
2015
 
 
 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
($13)
FTRs
 
$—
 
Purchased power expense
(b)
$51
Electricity swaps and options de-designated as hedged items
 
$—
 
Competitive business operating revenues
 
($3)
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
($8)
FTRs
 
$—
 
Purchased power expense
(b)
$47
Electricity swaps and options de-designated as hedged items
 
($9)
 
Competitive business operating revenues
 
($5)

The effect of Entergy’s derivative instruments not designated as hedging instruments on the consolidated statements of operations for the nine months ended September 30, 2015 and 2014 is as follows:
Instrument

Amount of gain (loss) recognized in AOCI

Income Statement
location

Amount of gain (loss)
recorded in the income statement
 
 
(In Millions)
 
 
 
(In Millions)
2015
 

 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
($29)
FTRs

$—

Purchased power expense
(b)
$130
Electricity swaps and options de-designated as hedged items
 
$1
 
Competitive business operating revenues
 
($42)
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
$13
FTRs
 
$—
 
Purchased power expense
(b)
$182
Electricity swaps and options de-designated as hedged items
 
($2)
 
Competitive business operating revenues
 
$20

(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of FTRs for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses are recorded as purchased power expense when the FTRs for the Utility operating companies settle and are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2015 and December 31, 2014.  The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect their placement within the fair value hierarchy levels.
2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$961

 

$—

 

$—

 

$961

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
426

 
2,592

 
—

 
3,018

Debt securities
 
942

 
1,231

 
—

 
2,173

Power contracts
 
—

 
—

 
169

 
169

Securitization recovery trust account
 
53

 
—

 
—

 
53

Escrow accounts
 
431

 
—

 
—

 
431

FTRs
 
—

 
—

 
47

 
47

 
 

$2,813

 

$3,823

 

$216

 

$6,852

Liabilities:
 
 
 
 
 
 
 
 
Power contracts
 

$—

 

$—

 

$6

 

$6

Gas hedge contracts
 
10

 
—

 
—

 
10

 
 

$10

 

$—

 

$6

 

$16


2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$1,291

 

$—

 

$—

 

$1,291

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
452

 
2,834

 
—

 
3,286

Debt securities
 
880

 
1,205

 
—

 
2,085

Power contracts
 
—

 
—

 
217

 
217

Securitization recovery trust account
 
44

 
—

 
—

 
44

Escrow accounts
 
362

 
—

 
—

 
362

FTRs
 
—

 
—

 
47

 
47

 
 

$3,029

 

$4,039

 

$264

 

$7,332

Liabilities:
 
 
 
 
 
 
 
 
Power contracts
 

$—

 

$—

 

$2

 

$2

Gas hedge contracts
 
20

 
—

 
—

 
20

 
 

$20

 

$—

 

$2

 

$22


(a)
The decommissioning trust funds hold equity and fixed income securities. Equity securities are held to approximate the returns of major market indices.  Fixed income investments are held in various governmental and corporate securities.  See Note 9 to the financial statements herein for additional information on the investment portfolios.
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2015 and 2014:
 
2015
 
2014
 
Power Contracts
 
FTRs
 
Power Contracts
 
FTRs
 
(In Millions)
Balance as of July 1,

$204

 

$67

 

($88
)
 

$144

Total gains (losses) for the period (a)
 
 
 
 
 
 
 
Included in earnings
(2
)
 
—

 
(6
)
 
—

Included in OCI
49

 
—

 
37

 
—

Included as a regulatory liability/asset
—

 
31

 
—

 
(13
)
Purchases
—

 
—

 
7

 
—

Settlements
(88
)
 
(51
)
 
(41
)
 
(48
)
Balance as of September 30,

$163

 

$47

 

($91
)
 

$83


(a)
Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period is $12 million for the three months ended September 30, 2015 and $4 million for the three months ended September 30, 2014.

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2015 and 2014:
 
2015
 
2014
 
Power Contracts
 
FTRs
 
Power Contracts
 
FTRs

(In Millions)
Balance as of January 1,

$215

 

$47

 

($133
)
 

$34

Total gains (losses) for the period (a)
 
 
 
 
 
 
 
Included in earnings
(15
)
 
(1
)
 
21

 
—

Included in OCI
154

 
—

 
(182
)
 
—

Included as a regulatory liability/asset
—

 
51

 
—

 
110

Issuances of FTRs
—

 
80

 
—

 
121

Purchases
14

 
—

 
15

 
—

Settlements
(205
)
 
(130
)
 
188

 
(182
)
Balance as of September 30,

$163

 

$47

 

($91
)
 

$83



(a)
Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period is $5 million for the nine months ended September 30, 2015 and $90 million for the nine months ended September 30, 2014
Fair Value Inputs Liabilities Quantitative Information
The following table sets forth a description of the types of transactions classified as Level 3 in the fair value hierarchy and significant unobservable inputs to each which cause that classification as of September 30, 2015:
Transaction Type
 
Fair Value
as of
September 30,
2015
 
Significant
Unobservable Inputs
 
Range
from
Average
%
 
Effect on
Fair Value
 
 
(In Millions)
 
 
 
 
 
 
(In Millions)
Electricity swaps
 
$119
 
Unit contingent discount
 
+/-
3%
 
$7
Electricity options
 
$44
 
Implied volatility
 
+/-
64%
 
$31
Entergy Arkansas [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of September 30, 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$11.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$10.5
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.0
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$3.7
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.5
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.4
 
Entergy New Orleans

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2014 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$0.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$11.1
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$3.4
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.1
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$12.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.6
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$2.8
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.9
 
Entergy New Orleans

(a)
No cash collateral or letters of credit were required to be posted as of September 30, 2015 and December 31, 2014.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended September 30, 2015 and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.1)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.9)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$4.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$6.7
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$1.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.9
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($3.7)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.6)
 
Entergy Mississippi
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$4.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$13.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$3.3
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$5.1
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$9.8
 
Entergy Texas



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the nine months ended September 30, 2015 and 2014 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($11.4)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.3)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.9)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$48.6
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$20.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$7.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.7
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$6.5
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.6
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.7
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$16.7
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$33.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$15.6
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$11.4
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$56
 
Entergy Texas
Assets and liabilities at fair value on a recurring basis
Entergy Arkansas
2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$110.6

 

$—

 

$—

 

$110.6

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
5.9

 
437.5

 
—

 
443.4

Debt securities
 
111.5

 
191.6

 
—

 
303.1

Securitization recovery trust account
 
8.5

 
—

 
—

 
8.5

Escrow accounts
 
12.2

 
—

 
—

 
12.2

FTRs
 
—

 
—

 
11.7

 
11.7

 
 

$248.7

 

$629.1

 

$11.7

 

$889.5


2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$208.0

 

$—

 

$—

 

$208.0

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
7.2

 
480.1

 
—

 
487.3

Debt securities
 
72.2

 
210.4

 
—

 
282.6

Securitization recovery trust account
 
4.1

 
—

 
—

 
4.1

Escrow accounts
 
12.2

 
—

 
—

 
12.2

FTRs
 
—

 
—

 
0.7

 
0.7

 
 

$303.7

 

$690.5

 

$0.7

 

$994.9
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2015.

Entergy
Arkansas

Entergy
Louisiana

Entergy
Mississippi

Entergy
New
Orleans

Entergy
Texas
 
(In Millions)
Balance as of July 1,

$9.1

 

$19.5

 

$4.9

 

$6.7

 

$7.9

Gains (losses) included as a regulatory liability/asset
16.5

 
(4.2
)
 
6.1

 
(1.2
)
 
7.3

Settlements
(13.9
)
 
(4.8
)
 
(6.7
)
 
(1.5
)
 
(10.9
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of July 1,

$3.0

 

$23.6

 

$12.7

 

$8.5

 

$47.8

Gains (losses) included as a regulatory liability/asset
2.4

 
4.5

 
(3.3
)
 
2.6

 
(10.5
)
Settlements
(4.9
)
 
(13.4
)
 
(3.3
)
 
(5.1
)
 
(9.8
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2015.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$0.7

 

$11.1

 

$3.4

 

$4.1

 

$12.3

Issuances of FTRs
7.0

 
21.5

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
52.6

 
(1.7
)
 
9.4

 
0.1

 
(8.7
)
Settlements
(48.6
)
 
(20.4
)
 
(13.9
)
 
(7.5
)
 
(10.7
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$—

 

$5.7

 

$1.0

 

$2.0

 

$18.4

Issuances of FTRs
4.2

 
21.5

 
15.2

 
8.3

 
33.2

Gains included as a regulatory liability/asset
13.0

 
21.3

 
5.5

 
7.1

 
31.9

Settlements
(16.7
)
 
(33.8
)
 
(15.6
)
 
(11.4
)
 
(56.0
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5
Entergy Louisiana [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of September 30, 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$11.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$10.5
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.0
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$3.7
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.5
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.4
 
Entergy New Orleans

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2014 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$0.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$11.1
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$3.4
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.1
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$12.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.6
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$2.8
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.9
 
Entergy New Orleans

(a)
No cash collateral or letters of credit were required to be posted as of September 30, 2015 and December 31, 2014.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended September 30, 2015 and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.1)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.9)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$4.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$6.7
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$1.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.9
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($3.7)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.6)
 
Entergy Mississippi
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$4.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$13.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$3.3
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$5.1
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$9.8
 
Entergy Texas



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the nine months ended September 30, 2015 and 2014 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($11.4)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.3)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.9)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$48.6
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$20.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$7.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.7
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$6.5
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.6
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.7
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$16.7
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$33.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$15.6
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$11.4
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$56
 
Entergy Texas
Assets and liabilities at fair value on a recurring basis
Entergy Louisiana
2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$238.3

 

$—

 

$—

 

$238.3

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
4.2

 
220.9

 
—

 
225.1

Debt securities
 
70.7

 
80.6

 
—

 
151.3

Escrow accounts
 
200.2

 
—

 
—

 
200.2

Securitization recovery trust account
 
9.9

 
—

 
—

 
9.9

FTRs
 
—

 
—

 
10.5

 
10.5

 
 

$523.3

 

$301.5

 

$10.5

 

$835.3

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
      Gas hedge contracts
 

$3.7

 

$—

 

$—

 

$3.7


2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$157.1

 

$—

 

$—

 

$157.1

Decommissioning trust funds (a):
 
 

 
 

 
 

 
 

Equity securities
 
4.8

 
234.8

 
—

 
239.6

Debt securities
 
68.7

 
75.3

 
—

 
144.0

Escrow accounts
 
200.1

 
—

 
—

 
200.1

Securitization recovery trust account
 
3.1

 
—

 
—

 
3.1

FTRs
 
—

 
—

 
11.1

 
11.1

 
 

$433.8

 

$310.1

 

$11.1

 

$755.0

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$7.6

 

$—

 

$—

 

$7.6
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2015.

Entergy
Arkansas

Entergy
Louisiana

Entergy
Mississippi

Entergy
New
Orleans

Entergy
Texas
 
(In Millions)
Balance as of July 1,

$9.1

 

$19.5

 

$4.9

 

$6.7

 

$7.9

Gains (losses) included as a regulatory liability/asset
16.5

 
(4.2
)
 
6.1

 
(1.2
)
 
7.3

Settlements
(13.9
)
 
(4.8
)
 
(6.7
)
 
(1.5
)
 
(10.9
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of July 1,

$3.0

 

$23.6

 

$12.7

 

$8.5

 

$47.8

Gains (losses) included as a regulatory liability/asset
2.4

 
4.5

 
(3.3
)
 
2.6

 
(10.5
)
Settlements
(4.9
)
 
(13.4
)
 
(3.3
)
 
(5.1
)
 
(9.8
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2015.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$0.7

 

$11.1

 

$3.4

 

$4.1

 

$12.3

Issuances of FTRs
7.0

 
21.5

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
52.6

 
(1.7
)
 
9.4

 
0.1

 
(8.7
)
Settlements
(48.6
)
 
(20.4
)
 
(13.9
)
 
(7.5
)
 
(10.7
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$—

 

$5.7

 

$1.0

 

$2.0

 

$18.4

Issuances of FTRs
4.2

 
21.5

 
15.2

 
8.3

 
33.2

Gains included as a regulatory liability/asset
13.0

 
21.3

 
5.5

 
7.1

 
31.9

Settlements
(16.7
)
 
(33.8
)
 
(15.6
)
 
(11.4
)
 
(56.0
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5
Entergy Mississippi [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of September 30, 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$11.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$10.5
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.0
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$3.7
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.5
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.4
 
Entergy New Orleans

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2014 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$0.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$11.1
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$3.4
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.1
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$12.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.6
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$2.8
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.9
 
Entergy New Orleans

(a)
No cash collateral or letters of credit were required to be posted as of September 30, 2015 and December 31, 2014.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended September 30, 2015 and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.1)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.9)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$4.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$6.7
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$1.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.9
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($3.7)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.6)
 
Entergy Mississippi
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$4.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$13.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$3.3
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$5.1
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$9.8
 
Entergy Texas



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the nine months ended September 30, 2015 and 2014 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($11.4)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.3)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.9)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$48.6
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$20.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$7.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.7
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$6.5
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.6
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.7
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$16.7
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$33.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$15.6
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$11.4
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$56
 
Entergy Texas
Assets and liabilities at fair value on a recurring basis
Entergy Mississippi
2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$193.4

 

$—

 

$—

 

$193.4

Escrow accounts
 
41.7

 
—

 
—

 
41.7

FTRs
 
—

 
—

 
4.3

 
4.3

 
 

$235.1

 

$—

 

$4.3

 

$239.4

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$1.5

 

$—

 

$—

 

$1.5


2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$60.4

 

$—

 

$—

 

$60.4

Escrow accounts
 
41.8

 
—

 
—

 
41.8

FTRs
 
—

 
—

 
3.4

 
3.4

 
 

$102.2

 

$—

 

$3.4

 

$105.6

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$2.8

 

$—

 

$—

 

$2.8
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2015.

Entergy
Arkansas

Entergy
Louisiana

Entergy
Mississippi

Entergy
New
Orleans

Entergy
Texas
 
(In Millions)
Balance as of July 1,

$9.1

 

$19.5

 

$4.9

 

$6.7

 

$7.9

Gains (losses) included as a regulatory liability/asset
16.5

 
(4.2
)
 
6.1

 
(1.2
)
 
7.3

Settlements
(13.9
)
 
(4.8
)
 
(6.7
)
 
(1.5
)
 
(10.9
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of July 1,

$3.0

 

$23.6

 

$12.7

 

$8.5

 

$47.8

Gains (losses) included as a regulatory liability/asset
2.4

 
4.5

 
(3.3
)
 
2.6

 
(10.5
)
Settlements
(4.9
)
 
(13.4
)
 
(3.3
)
 
(5.1
)
 
(9.8
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2015.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$0.7

 

$11.1

 

$3.4

 

$4.1

 

$12.3

Issuances of FTRs
7.0

 
21.5

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
52.6

 
(1.7
)
 
9.4

 
0.1

 
(8.7
)
Settlements
(48.6
)
 
(20.4
)
 
(13.9
)
 
(7.5
)
 
(10.7
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$—

 

$5.7

 

$1.0

 

$2.0

 

$18.4

Issuances of FTRs
4.2

 
21.5

 
15.2

 
8.3

 
33.2

Gains included as a regulatory liability/asset
13.0

 
21.3

 
5.5

 
7.1

 
31.9

Settlements
(16.7
)
 
(33.8
)
 
(15.6
)
 
(11.4
)
 
(56.0
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5
Entergy New Orleans [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of September 30, 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$11.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$10.5
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.0
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$3.7
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.5
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.4
 
Entergy New Orleans

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2014 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$0.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$11.1
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$3.4
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.1
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$12.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.6
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$2.8
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.9
 
Entergy New Orleans

(a)
No cash collateral or letters of credit were required to be posted as of September 30, 2015 and December 31, 2014.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended September 30, 2015 and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.1)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.9)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$4.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$6.7
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$1.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.9
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($3.7)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.6)
 
Entergy Mississippi
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$4.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$13.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$3.3
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$5.1
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$9.8
 
Entergy Texas



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the nine months ended September 30, 2015 and 2014 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($11.4)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.3)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.9)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$48.6
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$20.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$7.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.7
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$6.5
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.6
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.7
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$16.7
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$33.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$15.6
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$11.4
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$56
 
Entergy Texas
Assets and liabilities at fair value on a recurring basis
Entergy New Orleans
2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$20.5

 

$—

 

$—

 

$20.5

Securitization recovery trust account
 
1.4

 
—

 
—

 
1.4

Escrow accounts
 
86.8

 
—

 
—

 
86.8

FTRs
 
—

 
—

 
4.0

 
4.0

 
 

$108.7

 

$—

 

$4.0

 

$112.7

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$0.4

 

$—

 

$—

 

$0.4


2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$41.4

 

$—

 

$—

 

$41.4

Escrow accounts
 
18.0

 
—

 
—

 
18.0

FTRs
 
—

 
—

 
4.1

 
4.1

 
 

$59.4

 

$—

 

$4.1

 

$63.5

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$0.9

 

$—

 

$—

 

$0.9
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2015.

Entergy
Arkansas

Entergy
Louisiana

Entergy
Mississippi

Entergy
New
Orleans

Entergy
Texas
 
(In Millions)
Balance as of July 1,

$9.1

 

$19.5

 

$4.9

 

$6.7

 

$7.9

Gains (losses) included as a regulatory liability/asset
16.5

 
(4.2
)
 
6.1

 
(1.2
)
 
7.3

Settlements
(13.9
)
 
(4.8
)
 
(6.7
)
 
(1.5
)
 
(10.9
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of July 1,

$3.0

 

$23.6

 

$12.7

 

$8.5

 

$47.8

Gains (losses) included as a regulatory liability/asset
2.4

 
4.5

 
(3.3
)
 
2.6

 
(10.5
)
Settlements
(4.9
)
 
(13.4
)
 
(3.3
)
 
(5.1
)
 
(9.8
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2015.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$0.7

 

$11.1

 

$3.4

 

$4.1

 

$12.3

Issuances of FTRs
7.0

 
21.5

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
52.6

 
(1.7
)
 
9.4

 
0.1

 
(8.7
)
Settlements
(48.6
)
 
(20.4
)
 
(13.9
)
 
(7.5
)
 
(10.7
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$—

 

$5.7

 

$1.0

 

$2.0

 

$18.4

Issuances of FTRs
4.2

 
21.5

 
15.2

 
8.3

 
33.2

Gains included as a regulatory liability/asset
13.0

 
21.3

 
5.5

 
7.1

 
31.9

Settlements
(16.7
)
 
(33.8
)
 
(15.6
)
 
(11.4
)
 
(56.0
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5
Entergy Texas [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of September 30, 2015 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$11.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$10.5
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.0
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$4.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$3.7
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$1.5
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.4
 
Entergy New Orleans

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2014 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
FTRs
 
Prepayments and other
 
$0.7
 
Entergy Arkansas
FTRs
 
Prepayments and other
 
$11.1
 
Entergy Louisiana
FTRs
 
Prepayments and other
 
$3.4
 
Entergy Mississippi
FTRs
 
Prepayments and other
 
$4.1
 
Entergy New Orleans
FTRs
 
Prepayments and other
 
$12.3
 
Entergy Texas
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 
$7.6
 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 
$2.8
 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 
$0.9
 
Entergy New Orleans

(a)
No cash collateral or letters of credit were required to be posted as of September 30, 2015 and December 31, 2014.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended September 30, 2015 and 2014 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($5.1)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.9)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.4)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$4.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$6.7
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$1.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.9
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($3.7)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.6)
 
Entergy Mississippi
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$4.9
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$13.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$3.3
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$5.1
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$9.8
 
Entergy Texas



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the nine months ended September 30, 2015 and 2014 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2015
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($11.4)
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.3)
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.9)
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$48.6
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$20.4
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$13.9
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$7.5
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$10.7
 
Entergy Texas
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$6.5
 
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.6
 
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
$0.7
 
Entergy New Orleans
 
 
 
 
 
 
 
FTRs
 
Purchased power expense
 
$16.7
 
Entergy Arkansas
FTRs
 
Purchased power expense
 
$33.8
 
Entergy Louisiana
FTRs
 
Purchased power expense
 
$15.6
 
Entergy Mississippi
FTRs
 
Purchased power expense
 
$11.4
 
Entergy New Orleans
FTRs
 
Purchased power expense
 
$56
 
Entergy Texas
Assets and liabilities at fair value on a recurring basis
Entergy Texas
2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$3.7

 

$—

 

$—

 

$3.7

Securitization recovery trust account
 
33.3

 
—

 
—

 
33.3

FTRs
 
—

 
—

 
4.3

 
4.3

 
 

$37.0

 

$—

 

$4.3

 

$41.3


2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$28.7

 

$—

 

$—

 

$28.7

Securitization recovery trust account
 
37.2

 
—

 
—

 
37.2

FTRs
 
—

 
—

 
12.3

 
12.3

 
 

$65.9

 

$—

 

$12.3

 

$78.2
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2015.

Entergy
Arkansas

Entergy
Louisiana

Entergy
Mississippi

Entergy
New
Orleans

Entergy
Texas
 
(In Millions)
Balance as of July 1,

$9.1

 

$19.5

 

$4.9

 

$6.7

 

$7.9

Gains (losses) included as a regulatory liability/asset
16.5

 
(4.2
)
 
6.1

 
(1.2
)
 
7.3

Settlements
(13.9
)
 
(4.8
)
 
(6.7
)
 
(1.5
)
 
(10.9
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of July 1,

$3.0

 

$23.6

 

$12.7

 

$8.5

 

$47.8

Gains (losses) included as a regulatory liability/asset
2.4

 
4.5

 
(3.3
)
 
2.6

 
(10.5
)
Settlements
(4.9
)
 
(13.4
)
 
(3.3
)
 
(5.1
)
 
(9.8
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5



The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2015.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$0.7

 

$11.1

 

$3.4

 

$4.1

 

$12.3

Issuances of FTRs
7.0

 
21.5

 
5.4

 
7.3

 
11.4

Gains (losses) included as a regulatory liability/asset
52.6

 
(1.7
)
 
9.4

 
0.1

 
(8.7
)
Settlements
(48.6
)
 
(20.4
)
 
(13.9
)
 
(7.5
)
 
(10.7
)
Balance as of September 30,

$11.7

 

$10.5

 

$4.3

 

$4.0

 

$4.3


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2014.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$—

 

$5.7

 

$1.0

 

$2.0

 

$18.4

Issuances of FTRs
4.2

 
21.5

 
15.2

 
8.3

 
33.2

Gains included as a regulatory liability/asset
13.0

 
21.3

 
5.5

 
7.1

 
31.9

Settlements
(16.7
)
 
(33.8
)
 
(15.6
)
 
(11.4
)
 
(56.0
)
Balance as of September 30,

$0.5

 

$14.7

 

$6.1

 

$6.0

 

$27.5
System Energy [Member]  
Assets and liabilities at fair value on a recurring basis
System Energy
2015
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$153.2

 

$—

 

$—

 

$153.2

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
1.2

 
397.6

 
—

 
398.8

Debt securities
 
211.9

 
63.5

 
—

 
275.4

 
 

$366.3

 

$461.1

 

$—

 

$827.4


2014
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$222.4

 

$—

 

$—

 

$222.4

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
2.0

 
422.5

 
—

 
424.5

Debt securities
 
194.2

 
61.1

 
—

 
255.3

 
 

$418.6

 

$483.6

 

$—

 

$902.2