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Risk Management And Fair Values (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Values Of Derivative Instruments
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of March 31, 2018 are shown in the table below.  Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Business
 
 
 
 
(In Millions)
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$63
 
($14)
 
$49
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$31
 
($5)
 
$26
 
Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities
(current portion)
 
$13
 
($13)
 
$—
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$5
 
($5)
 
$—
 
Entergy Wholesale Commodities
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$3
 
($3)
 
$—
 
Entergy Wholesale Commodities
Financial transmission rights
 
Prepayments and other
 
$9
 
($1)
 
$8
 
Utility and Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities
(current portion)
 
$4
 
($4)
 
$—
 
Entergy Wholesale Commodities
Natural gas swaps
 
Other current liabilities
 
$1
 
$—
 
$1
 
Utility
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below.  Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Business
 
 
 
 
(In Millions)
 
 
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$19
 
($19)
 
$—
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$19
 
($14)
 
$5
 
Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$86
 
($20)
 
$66
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$17
 
($14)
 
$3
 
Entergy Wholesale Commodities
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$9
 
($9)
 
$—
 
Entergy Wholesale Commodities
Financial transmission rights
 
Prepayments and other
 
$22
 
($1)
 
$21
 
Utility and Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$9
 
($8)
 
$1
 
Entergy Wholesale Commodities
Natural gas swaps
 
Other current liabilities
 
$6
 
$—
 
$6
 
Utility


(a)
Represents the gross amounts of recognized assets/liabilities
(b)
Represents the netting of fair value balances with the same counterparty
(c)
Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet
(d)
Excludes cash collateral in the amount of $1 million posted and $6 million held as of March 31, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes $69 million in letters of credit held as of March 31, 2018 and $34 million in letters of credit held as of December 31, 2017.
Derivative Instruments Designated As Cash Flow Hedges On Consolidated Statements Of Income

 
 
 
 
 
 
 

The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended March 31, 2018 and 2017 are as follows:
Instrument
 
Amount of gain recognized in other
comprehensive income
 
Income Statement location
 
Amount of gain (loss)
reclassified from
accumulated other comprehensive income into income (a)

 
(In Millions)
 
 
 
(In Millions)
2018
 
 
 
 
 
 
Electricity swaps and options
 
$91
 
Competitive businesses operating revenues
 
($30)
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Electricity swaps and options
 
$50
 
Competitive businesses operating revenues
 
$51

    
(a)
Before taxes of ($6) million and $18 million for the three months ended March 31, 2018 and 2017, respectively
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income

 
 
 
 
 
 
 

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended March 31, 2018 and 2017 are as follows:
Instrument

Amount of gain recognized in accumulated other comprehensive income

Income Statement
location

Amount of gain (loss)
recorded in the income statement
 
 
(In Millions)
 
 
 
(In Millions)
2018
 

 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
$—
Financial transmission rights

$—

Purchased power expense
(b)
$32
Electricity swaps and options
 
$—
(c)
Competitive business operating revenues
 
$1
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
($7)
Financial transmission rights
 
$—
 
Purchased power expense
(b)
$30
Electricity swaps and options
 
$9
(c)
Competitive business operating revenues
 
$—


(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 financial transmission rights 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 recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
(c)
Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items.
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 March 31, 2018 and December 31, 2017.  The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect its placement within the fair value hierarchy levels.
2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$1,148

 

$—

 

$—

 

$1,148

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
577

 
—

 
—

 
577

Debt securities
 
1,084

 
1,535

 
—

 
2,619

Common trusts (b)
 
 
 
 
 
 
 
3,920

Power contracts
 
—

 
—

 
75

 
75

Securitization recovery trust account
 
52

 
—

 
—

 
52

Escrow accounts
 
398

 
—

 
—

 
398

Financial transmission rights
 
—

 
—

 
8

 
8

 
 

$3,259

 

$1,535

 

$83

 

$8,797

Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$1

 

$—

 

$—

 

$1


2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$725

 

$—

 

$—

 

$725

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
526

 
—

 
—

 
526

Debt securities
 
1,125

 
1,425

 
—

 
2,550

Common trusts (b)
 
 
 
 
 
 
 
4,136

Power contracts
 
—

 
—

 
5

 
5

Securitization recovery trust account
 
45

 
—

 
—

 
45

Escrow accounts
 
406

 
—

 
—

 
406

Financial transmission rights
 
—

 
—

 
21

 
21

 
 

$2,827

 

$1,425

 

$26

 

$8,414

Liabilities:
 
 
 
 
 
 
 
 
Power contracts
 

$—

 

$—

 

$70

 

$70

Gas hedge contracts
 
6

 
—

 
—

 
6

 
 

$6

 

$—

 

$70

 

$76



(a)
The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices.  Fixed income securities are held in various governmental and corporate securities.  See Note 9 to the financial statements for additional information on the investment portfolios.
(b)
Common trust funds are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.
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 March 31, 2018 and 2017:
 
2018
 
2017
 
Power Contracts
 
Financial transmission rights
 
Power Contracts
 
Financial transmission rights

(In Millions)
Balance as of January 1,

($65
)
 

$21

 

$5

 

$21

Total gains (losses) for the period (a)
 
 
 
 
 
 
 
Included in earnings
14

 
(1
)
 
—

 
—

Included in other comprehensive income
91

 
—

 
50

 
—

Included as a regulatory liability/asset
—

 
20

 
—

 
17

Settlements
35

 
(32
)
 
(50
)
 
(30
)
Balance as of March 31,

$75

 

$8

 

$5

 

$8



(a)
Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period is $0.2 million for the three months ended March 31, 2018 and $0.4 million for the three months ended March 31, 2017.

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 March 31, 2018:
Transaction Type
 
Fair Value
as of
March 31, 2018
 
Significant
Unobservable Inputs
 
Range
from
Average
%
 
Effect on
Fair Value
 
 
(In Millions)
 
 
 
 
 
 
(In Millions)
Power contracts - electricity swaps
 
$75
 
Unit contingent discount
 
+/-
4% - 4.75%
 
$5 - $7
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 March 31, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$1.9

 

($0.1
)
 

$1.8

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$3.8

 

($0.4
)
 

$3.4

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$0.9

 

$—

 

$0.9

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$0.7

 

$—

 

$0.7

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$1.4

 

$—

 

$1.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy Mississippi

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$3.2

 

($0.2
)
 

$3.0

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$11.0

 

($0.8
)
 

$10.2

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$2.1

 

$—

 

$2.1

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$2.2

 

$—

 

$2.2

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$3.6

 

($0.2
)
 

$3.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$5.0

 

$—

 

$5.0

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy New Orleans

(a)
Represents the gross amounts of recognized assets/liabilities
(b)
Represents the netting of fair value balances with the same counterparty
(c)
Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets
(d)
As of March 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.2 million for Entergy Texas. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas.
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 March 31, 2018 and 2017 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2018
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$8.0
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$17.6
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$3.3
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
($3.5)
(b)
Entergy Texas
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 

(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 financial transmission rights 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 recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Arkansas
2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 

$3.6

 

$—

 

$—

 

$3.6

Debt securities
 
111.3

 
239.5

 
—

 
350.8

Common trusts (b)
 
 
 
 
 
 
 
581.3

Securitization recovery trust account
 
7.9

 
—

 
—

 
7.9

Financial transmission rights
 
—

 
—

 
1.8

 
1.8

 
 

$122.8

 

$239.5

 

$1.8

 

$945.4


2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 

$11.7

 

$—

 

$—

 

$11.7

Debt securities
 
115.8

 
232.4

 
—

 
348.2

Common trusts (b)
 
 
 
 
 
 
 
585.0

Securitization recovery trust account
 
3.7

 
—

 
—

 
3.7

Escrow accounts
 
2.4

 
—

 
—

 
2.4

Financial transmission rights
 
—

 
—

 
3.0

 
3.0

 
 

$133.6

 

$232.4

 

$3.0

 

$954.0
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 March 31, 2018.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$3.0

 

$10.2

 

$2.1

 

$2.2

 

$3.4

Gains included as a regulatory liability/asset
6.8

 
10.8

 
6.6

 
1.8

 
(5.5
)
Settlements
(8.0
)
 
(17.6
)
 
(7.8
)
 
(3.3
)
 
3.5

Balance as of March 31,

$1.8

 

$3.4

 

$0.9

 

$0.7

 

$1.4


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 March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

Gains (losses) included as a regulatory liability/asset
0.1

 
10.8

 
1.2

 
1.8

 
3.2

Settlements
(4.6
)
 
(15.2
)
 
(3.1
)
 
(2.4
)
 
(5.3
)
Balance as of March 31,

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0
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 March 31, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$1.9

 

($0.1
)
 

$1.8

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$3.8

 

($0.4
)
 

$3.4

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$0.9

 

$—

 

$0.9

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$0.7

 

$—

 

$0.7

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$1.4

 

$—

 

$1.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy Mississippi

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$3.2

 

($0.2
)
 

$3.0

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$11.0

 

($0.8
)
 

$10.2

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$2.1

 

$—

 

$2.1

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$2.2

 

$—

 

$2.2

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$3.6

 

($0.2
)
 

$3.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$5.0

 

$—

 

$5.0

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy New Orleans

(a)
Represents the gross amounts of recognized assets/liabilities
(b)
Represents the netting of fair value balances with the same counterparty
(c)
Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets
(d)
As of March 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.2 million for Entergy Texas. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas.
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 March 31, 2018 and 2017 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2018
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$8.0
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$17.6
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$3.3
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
($3.5)
(b)
Entergy Texas
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 

(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 financial transmission rights 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 recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Louisiana
2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$561.9

 

$—

 

$—

 

$561.9

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
12.2

 
—

 
—

 
12.2

Debt securities
 
145.6

 
370.7

 
—

 
516.3

Common trusts (b)
 
 
 
 
 
 
 
775.9

Escrow accounts
 
285.6

 
—

 
—

 
285.6

Securitization recovery trust account
 
9.5

 
—

 
—

 
9.5

Financial transmission rights
 
—

 
—

 
3.4

 
3.4

 
 

$1,014.8

 

$370.7

 

$3.4

 

$2,164.8

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$1.2

 

$—

 

$—

 

$1.2


2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$30.1

 

$—

 

$—

 

$30.1

Decommissioning trust funds (a):
 
 

 
 

 
 

 
 

Equity securities
 
15.2

 
—

 
—

 
15.2

Debt securities
 
143.3

 
350.5

 
—

 
493.8

Common trusts (b)
 
 
 
 
 
 
 
803.1

Escrow accounts
 
289.5

 
—

 
—

 
289.5

Securitization recovery trust account
 
2.0

 
—

 
—

 
2.0

Financial transmission rights
 
—

 
—

 
10.2

 
10.2

 
 

$480.1

 

$350.5

 

$10.2

 

$1,643.9

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$5.0

 

$—

 

$—

 

$5.0
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 March 31, 2018.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$3.0

 

$10.2

 

$2.1

 

$2.2

 

$3.4

Gains included as a regulatory liability/asset
6.8

 
10.8

 
6.6

 
1.8

 
(5.5
)
Settlements
(8.0
)
 
(17.6
)
 
(7.8
)
 
(3.3
)
 
3.5

Balance as of March 31,

$1.8

 

$3.4

 

$0.9

 

$0.7

 

$1.4


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 March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

Gains (losses) included as a regulatory liability/asset
0.1

 
10.8

 
1.2

 
1.8

 
3.2

Settlements
(4.6
)
 
(15.2
)
 
(3.1
)
 
(2.4
)
 
(5.3
)
Balance as of March 31,

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0
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 March 31, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$1.9

 

($0.1
)
 

$1.8

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$3.8

 

($0.4
)
 

$3.4

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$0.9

 

$—

 

$0.9

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$0.7

 

$—

 

$0.7

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$1.4

 

$—

 

$1.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy Mississippi

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$3.2

 

($0.2
)
 

$3.0

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$11.0

 

($0.8
)
 

$10.2

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$2.1

 

$—

 

$2.1

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$2.2

 

$—

 

$2.2

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$3.6

 

($0.2
)
 

$3.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$5.0

 

$—

 

$5.0

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy New Orleans

(a)
Represents the gross amounts of recognized assets/liabilities
(b)
Represents the netting of fair value balances with the same counterparty
(c)
Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets
(d)
As of March 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.2 million for Entergy Texas. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas.
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 March 31, 2018 and 2017 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2018
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$8.0
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$17.6
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$3.3
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
($3.5)
(b)
Entergy Texas
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 

(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 financial transmission rights 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 recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Mississippi
2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$0.3

 

$—

 

$—

 

$0.3

Escrow accounts
 
32.1

 
—

 
—

 
32.1

Financial transmission rights
 
—

 
—

 
0.9

 
0.9

 
 

$32.4

 

$—

 

$0.9

 

$33.3

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$0.2

 

$—

 

$—

 

$0.2


2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$4.5

 

$—

 

$—

 

$4.5

Escrow accounts
 
32.0

 
—

 
—

 
32.0

Financial transmission rights
 
—

 
—

 
2.1

 
2.1

 
 

$36.5

 

$—

 

$2.1

 

$38.6

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$1.2

 

$—

 

$—

 

$1.2
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 March 31, 2018.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$3.0

 

$10.2

 

$2.1

 

$2.2

 

$3.4

Gains included as a regulatory liability/asset
6.8

 
10.8

 
6.6

 
1.8

 
(5.5
)
Settlements
(8.0
)
 
(17.6
)
 
(7.8
)
 
(3.3
)
 
3.5

Balance as of March 31,

$1.8

 

$3.4

 

$0.9

 

$0.7

 

$1.4


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 March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

Gains (losses) included as a regulatory liability/asset
0.1

 
10.8

 
1.2

 
1.8

 
3.2

Settlements
(4.6
)
 
(15.2
)
 
(3.1
)
 
(2.4
)
 
(5.3
)
Balance as of March 31,

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0
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 March 31, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$1.9

 

($0.1
)
 

$1.8

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$3.8

 

($0.4
)
 

$3.4

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$0.9

 

$—

 

$0.9

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$0.7

 

$—

 

$0.7

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$1.4

 

$—

 

$1.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy Mississippi

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$3.2

 

($0.2
)
 

$3.0

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$11.0

 

($0.8
)
 

$10.2

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$2.1

 

$—

 

$2.1

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$2.2

 

$—

 

$2.2

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$3.6

 

($0.2
)
 

$3.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$5.0

 

$—

 

$5.0

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy New Orleans

(a)
Represents the gross amounts of recognized assets/liabilities
(b)
Represents the netting of fair value balances with the same counterparty
(c)
Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets
(d)
As of March 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.2 million for Entergy Texas. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas.
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 March 31, 2018 and 2017 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2018
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$8.0
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$17.6
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$3.3
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
($3.5)
(b)
Entergy Texas
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 

(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 financial transmission rights 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 recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy New Orleans
2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$1.3

 

$—

 

$—

 

$1.3

Securitization recovery trust account
 
4.8

 
—

 
—

 
4.8

Escrow accounts
 
79.8

 
—

 
—

 
79.8

Financial transmission rights
 
—

 
—

 
0.7

 
0.7

 
 

$85.9

 

$—

 

$0.7

 

$86.6


2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$32.7

 

$—

 

$—

 

$32.7

Securitization recovery trust account
 
1.5

 
—

 
—

 
1.5

Escrow accounts
 
81.9

 
—

 
—

 
81.9

Financial transmission rights
 
—

 
—

 
2.2

 
2.2

 
 

$116.1

 

$—

 

$2.2

 

$118.3

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Gas hedge contracts
 

$0.2

 

$—

 

$—

 

$0.2
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 March 31, 2018.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$3.0

 

$10.2

 

$2.1

 

$2.2

 

$3.4

Gains included as a regulatory liability/asset
6.8

 
10.8

 
6.6

 
1.8

 
(5.5
)
Settlements
(8.0
)
 
(17.6
)
 
(7.8
)
 
(3.3
)
 
3.5

Balance as of March 31,

$1.8

 

$3.4

 

$0.9

 

$0.7

 

$1.4


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 March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

Gains (losses) included as a regulatory liability/asset
0.1

 
10.8

 
1.2

 
1.8

 
3.2

Settlements
(4.6
)
 
(15.2
)
 
(3.1
)
 
(2.4
)
 
(5.3
)
Balance as of March 31,

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0
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 March 31, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging.
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$1.9

 

($0.1
)
 

$1.8

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$3.8

 

($0.4
)
 

$3.4

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$0.9

 

$—

 

$0.9

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$0.7

 

$—

 

$0.7

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$1.4

 

$—

 

$1.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy Mississippi

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Gross Fair Value (a)
 
Offsetting Position (b)
 
Net Fair Value (c) (d)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 

$3.2

 

($0.2
)
 

$3.0

 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 

$11.0

 

($0.8
)
 

$10.2

 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 

$2.1

 

$—

 

$2.1

 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 

$2.2

 

$—

 

$2.2

 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 

$3.6

 

($0.2
)
 

$3.4

 
Entergy Texas
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Natural gas swaps
 
Other current liabilities
 

$5.0

 

$—

 

$5.0

 
Entergy Louisiana
Natural gas swaps
 
Other current liabilities
 

$1.2

 

$—

 

$1.2

 
Entergy Mississippi
Natural gas swaps
 
Other current liabilities
 

$0.2

 

$—

 

$0.2

 
Entergy New Orleans

(a)
Represents the gross amounts of recognized assets/liabilities
(b)
Represents the netting of fair value balances with the same counterparty
(c)
Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets
(d)
As of March 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.2 million for Entergy Texas. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas.
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 March 31, 2018 and 2017 are as follows:
Instrument
 
Income Statement Location
 
Amount of gain
(loss) recorded
in the income statement
 
Registrant
 
 
 
 
(In Millions)
 
 
2018
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.2)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$8.0
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$17.6
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$3.3
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
($3.5)
(b)
Entergy Texas
 
 
 
 
 
 
 
2017
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 

(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 financial transmission rights 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 recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Texas
2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$39.0

 

$—

 

$—

 

$39.0

Securitization recovery trust account
 
29.7

 
—

 
—

 
29.7

Financial transmission rights
 
—

 
—

 
1.4

 
1.4

 
 

$68.7

 

$—

 

$1.4

 

$70.1


2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$115.5

 

$—

 

$—

 

$115.5

Securitization recovery trust account
 
37.7

 
—

 
—

 
37.7

Financial transmission rights
 
—

 
—

 
3.4

 
3.4

 
 

$153.2

 

$—

 

$3.4

 

$156.6
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 March 31, 2018.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$3.0

 

$10.2

 

$2.1

 

$2.2

 

$3.4

Gains included as a regulatory liability/asset
6.8

 
10.8

 
6.6

 
1.8

 
(5.5
)
Settlements
(8.0
)
 
(17.6
)
 
(7.8
)
 
(3.3
)
 
3.5

Balance as of March 31,

$1.8

 

$3.4

 

$0.9

 

$0.7

 

$1.4


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 March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

Gains (losses) included as a regulatory liability/asset
0.1

 
10.8

 
1.2

 
1.8

 
3.2

Settlements
(4.6
)
 
(15.2
)
 
(3.1
)
 
(2.4
)
 
(5.3
)
Balance as of March 31,

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0
System Energy [Member]  
Assets and liabilities at fair value on a recurring basis
System Energy
2018
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$278.7

 

$—

 

$—

 

$278.7

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
2.3

 
—

 
—

 
2.3

Debt securities
 
172.5

 
153.1

 
—

 
325.6

Common trusts (b)
 
 
 
 
 
 
 
568.3

 
 

$453.5

 

$153.1

 

$—

 

$1,174.9


2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$287.1

 

$—

 

$—

 

$287.1

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
3.1

 
—

 
—

 
3.1

Debt securities
 
187.2

 
143.3

 
—

 
330.5

Common trusts (b)
 
 
 
 
 
 
 
572.1

 
 

$477.4

 

$143.3

 

$—

 

$1,192.8