Risk Management And Fair Values (Tables)
|
12 Months Ended |
Dec. 31, 2018 |
|---|
| 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 December 31, 2018: | | | | | | | | | | Transaction Type | | Fair Value as of December 31, 2018 | | Significant Unobservable Inputs | | Range from Average % | | Effect on Fair Value | | | (In Millions) | | | | | | (In Millions) | Power contracts - electricity swaps | | ($31) | | Unit contingent discount | | +/- 4% - 4.75% | | ($3) - ($4) |
|
| Fair Values Of Derivative Instruments |
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 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 | | 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) | | $32 | | ($32) | | $— | | Entergy Wholesale Commodities | Electricity swaps and options |
| Other deferred debits and other assets (non-current portion) | | $7 | | ($7) | | $— | | Entergy Wholesale Commodities | | | | | | | | | | | | Liabilities: | | | | | | | | | | | Electricity swaps and options | | Other current liabilities (current portion) | | $54 | | ($33) | | $21 | | Entergy Wholesale Commodities | Electricity swaps and options | | Other non-current liabilities (non-current portion) | | $20 | | ($7) | | $13 | | Entergy Wholesale Commodities |
| | | | | | | | | | | | Derivatives not designated as hedging instruments | | | | | | | | | | | | | | | | | | | | | | Assets: | | | | | | | | | | | Electricity swaps and options | | Prepayments and other (current portion) | | $4 | | ($2) | | $2 | | Entergy Wholesale Commodities | Electricity swaps and options | | Other deferred debits and other assets (non-current portion) | | $1 | | $— | | $1 | | Entergy Wholesale Commodities | Natural gas swaps and options | | Other deferred debits and other assets (non-current portion) | | $2 | | $— | | $2 | | Utility | Financial transmission rights | | Prepayments and other | | $16 | | ($1) | | $15 | | Utility and Entergy Wholesale Commodities | | | | | | | | | | | | Liabilities: | | | | | | | | | | | Electricity swaps and options | | Other current liabilities (current portion) | | $1 | | ($1) | | $— | | Entergy Wholesale Commodities | Natural gas swaps and options | | 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 | | 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) | | $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 $19 million posted as of December 31, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $4 million posted as of December 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 years ended December 31, 2018, 2017, and 2016 are as follows: | | | | | | | | Instrument | | Amount of gain (loss) 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 | | ($40) | | Competitive business operating revenues | | ($68) | | | | | | | | 2017 | | | | | | | Electricity swaps and options | | $44 | | Competitive business operating revenues | | $109 | | | | | | | | 2016 | | | | | | | Electricity swaps and options | | $135 | | Competitive business operating revenues | | $293 |
| | (a) | Before taxes of ($14) million, $38 million, and $103 million, for the years ended December 31, 2018, 2017, and 2016, 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 years ended December 31, 2018, 2017, and 2016 are as follows: | | | | | | | | Instrument | | Amount of gain (loss) 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 and options | | $— | | Fuel, fuel-related expenses, and gas purchased for resale | (a) | $8 | Financial transmission rights | | $— | | Purchased power expense | (b) | $131 | Electricity swaps and options | | $— | (c) | Competitive business operating revenues | | $8 | | | | | | | | 2017 | | | | | | | Natural gas swaps | | $— | | Fuel, fuel-related expenses, and gas purchased for resale | (a) | ($31) | Financial transmission rights | | $— | | Purchased power expense | (b) | $139 | Electricity swaps and options | | $— | (c) | Competitive business operating revenues | | $— | | | | | | | | 2016 | | | | | | | Natural gas swaps | | $— | | Fuel, fuel-related expenses, and gas purchased for resale | (a) | $11 | Financial transmission rights | | $— | | Purchased power expense | (b) | $125 | Electricity swaps and options | | $— | (c) | Competitive business operating revenues | | ($11) |
| | (a) | Due to regulatory treatment, the natural gas swaps and options 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 and options 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 December 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 their placement within the fair value hierarchy levels.
| | | | | | | | | | | | | | | | | | 2018 | | Level 1 | | Level 2 | | Level 3 | | Total | | | (In Millions) | Assets: | | | | | | | | | Temporary cash investments | |
| $424 |
| |
| $— |
| |
| $— |
| |
| $424 |
| Decommissioning trust funds (a): | | | | | | | | | Equity securities | | 1,686 |
| | — |
| | — |
| | 1,686 |
| Debt securities | | 1,259 |
| | 1,625 |
| | — |
| | 2,884 |
| Common trusts (b) | | | | | | | | 2,350 |
| Power contracts | | — |
| | — |
| | 3 |
| | 3 |
| Securitization recovery trust account | | 51 |
| | — |
| | — |
| | 51 |
| Escrow accounts | | 403 |
| | — |
| | — |
| | 403 |
| Gas hedge contracts | | — |
| | 2 |
| | — |
| | 2 |
| Financial transmission rights | | — |
| | — |
| | 15 |
| | 15 |
| | |
| $3,823 |
| |
| $1,627 |
| |
| $18 |
| |
| $7,818 |
| Liabilities: | | | | | | | | | Power contracts | |
| $— |
| |
| $— |
| |
| $34 |
| |
| $34 |
| Gas hedge contracts | | 1 |
| | — |
| | — |
| | 1 |
| | |
| $1 |
| |
| $— |
| |
| $34 |
| |
| $35 |
|
| | | | | | | | | | | | | | | | | | 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 years ended December 31, 2018, 2017, and 2016: | | | | | | | | | | | | | | | | | | | | | | | 2018 | | 2017 | | 2016 | | Power Contracts | Financial transmission rights | | Power Contracts | Financial transmission rights | | Power Contracts | Financial transmission rights | | (In Millions) | Balance as of January 1, |
| ($65 | ) |
| $21 |
| |
| $5 |
|
| $21 |
| |
| $189 |
|
| $23 |
| Total gains (losses) for the period (a) | | | | | | | | | Included in earnings | 2 |
| (1 | ) | | (3 | ) | 1 |
| | (10 | ) | — |
| Included in other comprehensive income | (40 | ) | — |
| | 44 |
| — |
| | 135 |
| — |
| Included as a regulatory liability/asset | — |
| 80 |
| | — |
| 76 |
| | — |
| 68 |
| Issuances of financial transmission rights | — |
| 46 |
| | — |
| 62 |
| | — |
| 55 |
| Settlements | 72 |
| (131 | ) | | (111 | ) | (139 | ) | | (309 | ) | (125 | ) | Balance as of December 31, |
| ($31 | ) |
| $15 |
| |
| ($65 | ) |
| $21 |
| |
| $5 |
|
| $21 |
|
| | (a) | Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period is ($3.5) million, $0.9 million, and $0.2 million for the years ended December 31, 2018, 2017, and 2016, respectively. |
|
| 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 December 31, 2018 and 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) | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | | | | | Assets: | | | | | | | | | | | Natural gas swaps and options | | Prepayments and other | | $0.3 | | $— | | $0.3 | | Entergy Louisiana | Natural gas swaps and options | | Other deferred debits and other assets | | $1.6 | | $— | | $1.6 | | Entergy Louisiana | | | | | | | | | | | | Financial transmission rights | | Prepayments and other | | $3.6 | | ($0.2) | | $3.4 | | Entergy Arkansas | Financial transmission rights | | Prepayments and other | | $8.4 | | ($0.1) | | $8.3 | | Entergy Louisiana | Financial transmission rights | | Prepayments and other | | $2.2 | | $— | | $2.2 | | Entergy Mississippi | Financial transmission rights | | Prepayments and other | | $1.3 | | $— | | $1.3 | | Entergy New Orleans | | | | | | | | | | | | Liabilities: | | | | | | | | | | | Financial transmission rights | | Other current liabilities | | $0.9 | | ($1.4) | | ($0.5) | | Entergy Texas | | | | | | | | | | | | Natural gas swaps and options | | Other current liabilities | | $1.1 | | $— | | $1.1 | | Entergy Louisiana | Natural gas swaps | | Other current liabilities | | $0.1 | | $— | | $0.1 | | Entergy New Orleans |
| | | | | | | | | | | | Instrument | | Balance Sheet Location | | Gross Fair Value (a) | | Offsetting Position (b) | | Net Fair Value (c) (d) | | Registrant | | | | | | | | | | | | 2017 | | | | | | | | | | | 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 December 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi, and $4.1 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 years ended December 31, 2018, 2017, and 2016 are as follows: | | | | | | | | Instrument | | Income Statement Location | | Amount of gain (loss) recorded in the income statement | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | Natural gas swaps and options | | Fuel, fuel-related expenses, and gas purchased for resale | | $4.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.2 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $0.2 | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $25.3 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $72.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $26.3 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $13.8 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | ($6.0) | (b) | Entergy Texas | | | | | | | | 2017 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($25.4) | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($5.2) | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.3) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $41.7 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $45.8 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $18.9 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $9.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $22.3 | (b) | Entergy Texas | | | | | | | | 2016 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $8.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.1 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.4) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $23.2 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $69.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $16.6 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $4.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $10.2 | (b) | Entergy Texas |
| | (a) | Due to regulatory treatment, the natural gas swaps and options 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 and options 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 | |
| $4.0 |
| |
| $— |
| |
| $— |
| |
| $4.0 |
| Debt securities | | 94.8 |
| | 286.5 |
| | — |
| | 381.3 |
| Common trusts (b) | | | | | | | | 526.7 |
| Securitization recovery trust account | | 4.7 |
| | — |
| | — |
| | 4.7 |
| Financial transmission rights | | — |
| | — |
| | 3.4 |
| | 3.4 |
| | |
| $103.5 |
| |
| $286.5 |
| |
| $3.4 |
| |
| $920.1 |
|
| | | | | | | | | | | | | | | | | | 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 year ended December 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 |
| Issuances of financial transmission rights | 11.8 |
| | 20.0 |
| | 4.5 |
| | 3.7 |
| | 6.1 |
| Gains (losses) included as a regulatory liability/asset | 13.9 |
| | 50.8 |
| | 21.9 |
| | 9.2 |
| | (16.0 | ) | Settlements | (25.3 | ) | | (72.7 | ) | | (26.3 | ) | | (13.8 | ) | | 6.0 |
| Balance as of December 31, |
| $3.4 |
| |
| $8.3 |
| |
| $2.2 |
| |
| $1.3 |
| |
| ($0.5 | ) |
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 year ended December 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 |
| Issuances of financial transmission rights | 8.9 |
| | 31.0 |
| | 9.6 |
| | 5.0 |
| | 7.1 |
| Gains included as a regulatory liability/asset | 30.4 |
| | 16.5 |
| | 8.2 |
| | 5.2 |
| | 15.5 |
| Settlements | (41.7 | ) | | (45.8 | ) | | (18.9 | ) | | (9.1 | ) | | (22.3 | ) | Balance as of December 31, |
| $3.0 |
| |
| $10.2 |
| |
| $2.1 |
| |
| $2.2 |
| |
| $3.4 |
|
|
| 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 December 31, 2018 and 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) | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | | | | | Assets: | | | | | | | | | | | Natural gas swaps and options | | Prepayments and other | | $0.3 | | $— | | $0.3 | | Entergy Louisiana | Natural gas swaps and options | | Other deferred debits and other assets | | $1.6 | | $— | | $1.6 | | Entergy Louisiana | | | | | | | | | | | | Financial transmission rights | | Prepayments and other | | $3.6 | | ($0.2) | | $3.4 | | Entergy Arkansas | Financial transmission rights | | Prepayments and other | | $8.4 | | ($0.1) | | $8.3 | | Entergy Louisiana | Financial transmission rights | | Prepayments and other | | $2.2 | | $— | | $2.2 | | Entergy Mississippi | Financial transmission rights | | Prepayments and other | | $1.3 | | $— | | $1.3 | | Entergy New Orleans | | | | | | | | | | | | Liabilities: | | | | | | | | | | | Financial transmission rights | | Other current liabilities | | $0.9 | | ($1.4) | | ($0.5) | | Entergy Texas | | | | | | | | | | | | Natural gas swaps and options | | Other current liabilities | | $1.1 | | $— | | $1.1 | | Entergy Louisiana | Natural gas swaps | | Other current liabilities | | $0.1 | | $— | | $0.1 | | Entergy New Orleans |
| | | | | | | | | | | | Instrument | | Balance Sheet Location | | Gross Fair Value (a) | | Offsetting Position (b) | | Net Fair Value (c) (d) | | Registrant | | | | | | | | | | | | 2017 | | | | | | | | | | | 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 December 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi, and $4.1 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 years ended December 31, 2018, 2017, and 2016 are as follows: | | | | | | | | Instrument | | Income Statement Location | | Amount of gain (loss) recorded in the income statement | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | Natural gas swaps and options | | Fuel, fuel-related expenses, and gas purchased for resale | | $4.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.2 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $0.2 | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $25.3 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $72.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $26.3 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $13.8 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | ($6.0) | (b) | Entergy Texas | | | | | | | | 2017 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($25.4) | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($5.2) | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.3) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $41.7 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $45.8 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $18.9 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $9.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $22.3 | (b) | Entergy Texas | | | | | | | | 2016 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $8.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.1 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.4) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $23.2 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $69.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $16.6 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $4.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $10.2 | (b) | Entergy Texas |
| | (a) | Due to regulatory treatment, the natural gas swaps and options 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 and options 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 | |
| $43.1 |
| |
| $— |
| |
| $— |
| |
| $43.1 |
| Decommissioning trust funds (a): | | | | | | | | | Equity securities | | 13.3 |
| | — |
| | — |
| | 13.3 |
| Debt securities | | 162.0 |
| | 370.9 |
| | — |
| | 532.9 |
| Common trusts (b) | | | | | | | | 738.8 |
| Escrow accounts | | 289.5 |
| | — |
| | — |
| | 289.5 |
| Securitization recovery trust account | | 3.6 |
| | — |
| | — |
| | 3.6 |
| Gas hedge contracts | | — |
| | 1.9 |
| | — |
| | 1.9 |
| Financial transmission rights | | — |
| | — |
| | 8.3 |
| | 8.3 |
| | |
| $511.5 |
| |
| $372.8 |
| |
| $8.3 |
| |
| $1,631.4 |
| | | | | | | | | | Liabilities: | | | | | | | | | Gas hedge contracts | |
| $0.7 |
| |
| $0.4 |
| |
| $— |
| |
| $1.1 |
|
| | | | | | | | | | | | | | | | | | 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 year ended December 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 |
| Issuances of financial transmission rights | 11.8 |
| | 20.0 |
| | 4.5 |
| | 3.7 |
| | 6.1 |
| Gains (losses) included as a regulatory liability/asset | 13.9 |
| | 50.8 |
| | 21.9 |
| | 9.2 |
| | (16.0 | ) | Settlements | (25.3 | ) | | (72.7 | ) | | (26.3 | ) | | (13.8 | ) | | 6.0 |
| Balance as of December 31, |
| $3.4 |
| |
| $8.3 |
| |
| $2.2 |
| |
| $1.3 |
| |
| ($0.5 | ) |
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 year ended December 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 |
| Issuances of financial transmission rights | 8.9 |
| | 31.0 |
| | 9.6 |
| | 5.0 |
| | 7.1 |
| Gains included as a regulatory liability/asset | 30.4 |
| | 16.5 |
| | 8.2 |
| | 5.2 |
| | 15.5 |
| Settlements | (41.7 | ) | | (45.8 | ) | | (18.9 | ) | | (9.1 | ) | | (22.3 | ) | Balance as of December 31, |
| $3.0 |
| |
| $10.2 |
| |
| $2.1 |
| |
| $2.2 |
| |
| $3.4 |
|
|
| 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 December 31, 2018 and 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) | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | | | | | Assets: | | | | | | | | | | | Natural gas swaps and options | | Prepayments and other | | $0.3 | | $— | | $0.3 | | Entergy Louisiana | Natural gas swaps and options | | Other deferred debits and other assets | | $1.6 | | $— | | $1.6 | | Entergy Louisiana | | | | | | | | | | | | Financial transmission rights | | Prepayments and other | | $3.6 | | ($0.2) | | $3.4 | | Entergy Arkansas | Financial transmission rights | | Prepayments and other | | $8.4 | | ($0.1) | | $8.3 | | Entergy Louisiana | Financial transmission rights | | Prepayments and other | | $2.2 | | $— | | $2.2 | | Entergy Mississippi | Financial transmission rights | | Prepayments and other | | $1.3 | | $— | | $1.3 | | Entergy New Orleans | | | | | | | | | | | | Liabilities: | | | | | | | | | | | Financial transmission rights | | Other current liabilities | | $0.9 | | ($1.4) | | ($0.5) | | Entergy Texas | | | | | | | | | | | | Natural gas swaps and options | | Other current liabilities | | $1.1 | | $— | | $1.1 | | Entergy Louisiana | Natural gas swaps | | Other current liabilities | | $0.1 | | $— | | $0.1 | | Entergy New Orleans |
| | | | | | | | | | | | Instrument | | Balance Sheet Location | | Gross Fair Value (a) | | Offsetting Position (b) | | Net Fair Value (c) (d) | | Registrant | | | | | | | | | | | | 2017 | | | | | | | | | | | 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 December 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi, and $4.1 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 years ended December 31, 2018, 2017, and 2016 are as follows: | | | | | | | | Instrument | | Income Statement Location | | Amount of gain (loss) recorded in the income statement | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | Natural gas swaps and options | | Fuel, fuel-related expenses, and gas purchased for resale | | $4.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.2 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $0.2 | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $25.3 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $72.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $26.3 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $13.8 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | ($6.0) | (b) | Entergy Texas | | | | | | | | 2017 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($25.4) | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($5.2) | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.3) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $41.7 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $45.8 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $18.9 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $9.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $22.3 | (b) | Entergy Texas | | | | | | | | 2016 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $8.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.1 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.4) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $23.2 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $69.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $16.6 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $4.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $10.2 | (b) | Entergy Texas |
| | (a) | Due to regulatory treatment, the natural gas swaps and options 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 and options 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 | |
| $36.9 |
| |
| $— |
| |
| $— |
| |
| $36.9 |
| Escrow accounts | | 32.4 |
| | — |
| | — |
| | 32.4 |
| Financial transmission rights | | — |
| | — |
| | 2.2 |
| | 2.2 |
| | |
| $69.3 |
| |
| $— |
| |
| $2.2 |
| |
| $71.5 |
|
| | | | | | | | | | | | | | | | | | 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 year ended December 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 |
| Issuances of financial transmission rights | 11.8 |
| | 20.0 |
| | 4.5 |
| | 3.7 |
| | 6.1 |
| Gains (losses) included as a regulatory liability/asset | 13.9 |
| | 50.8 |
| | 21.9 |
| | 9.2 |
| | (16.0 | ) | Settlements | (25.3 | ) | | (72.7 | ) | | (26.3 | ) | | (13.8 | ) | | 6.0 |
| Balance as of December 31, |
| $3.4 |
| |
| $8.3 |
| |
| $2.2 |
| |
| $1.3 |
| |
| ($0.5 | ) |
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 year ended December 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 |
| Issuances of financial transmission rights | 8.9 |
| | 31.0 |
| | 9.6 |
| | 5.0 |
| | 7.1 |
| Gains included as a regulatory liability/asset | 30.4 |
| | 16.5 |
| | 8.2 |
| | 5.2 |
| | 15.5 |
| Settlements | (41.7 | ) | | (45.8 | ) | | (18.9 | ) | | (9.1 | ) | | (22.3 | ) | Balance as of December 31, |
| $3.0 |
| |
| $10.2 |
| |
| $2.1 |
| |
| $2.2 |
| |
| $3.4 |
|
|
| 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 December 31, 2018 and 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) | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | | | | | Assets: | | | | | | | | | | | Natural gas swaps and options | | Prepayments and other | | $0.3 | | $— | | $0.3 | | Entergy Louisiana | Natural gas swaps and options | | Other deferred debits and other assets | | $1.6 | | $— | | $1.6 | | Entergy Louisiana | | | | | | | | | | | | Financial transmission rights | | Prepayments and other | | $3.6 | | ($0.2) | | $3.4 | | Entergy Arkansas | Financial transmission rights | | Prepayments and other | | $8.4 | | ($0.1) | | $8.3 | | Entergy Louisiana | Financial transmission rights | | Prepayments and other | | $2.2 | | $— | | $2.2 | | Entergy Mississippi | Financial transmission rights | | Prepayments and other | | $1.3 | | $— | | $1.3 | | Entergy New Orleans | | | | | | | | | | | | Liabilities: | | | | | | | | | | | Financial transmission rights | | Other current liabilities | | $0.9 | | ($1.4) | | ($0.5) | | Entergy Texas | | | | | | | | | | | | Natural gas swaps and options | | Other current liabilities | | $1.1 | | $— | | $1.1 | | Entergy Louisiana | Natural gas swaps | | Other current liabilities | | $0.1 | | $— | | $0.1 | | Entergy New Orleans |
| | | | | | | | | | | | Instrument | | Balance Sheet Location | | Gross Fair Value (a) | | Offsetting Position (b) | | Net Fair Value (c) (d) | | Registrant | | | | | | | | | | | | 2017 | | | | | | | | | | | 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 December 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi, and $4.1 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 years ended December 31, 2018, 2017, and 2016 are as follows: | | | | | | | | Instrument | | Income Statement Location | | Amount of gain (loss) recorded in the income statement | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | Natural gas swaps and options | | Fuel, fuel-related expenses, and gas purchased for resale | | $4.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.2 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $0.2 | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $25.3 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $72.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $26.3 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $13.8 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | ($6.0) | (b) | Entergy Texas | | | | | | | | 2017 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($25.4) | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($5.2) | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.3) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $41.7 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $45.8 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $18.9 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $9.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $22.3 | (b) | Entergy Texas | | | | | | | | 2016 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $8.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.1 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.4) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $23.2 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $69.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $16.6 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $4.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $10.2 | (b) | Entergy Texas |
| | (a) | Due to regulatory treatment, the natural gas swaps and options 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 and options 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 | |
| $19.7 |
| |
| $— |
| |
| $— |
| |
| $19.7 |
| Securitization recovery trust account | | 2.2 |
| | — |
| | — |
| | 2.2 |
| Escrow accounts | | 80.9 |
| | — |
| | — |
| | 80.9 |
| Financial transmission rights | | — |
| | — |
| | 1.3 |
| | 1.3 |
| | |
| $102.8 |
| |
| $— |
| |
| $1.3 |
| |
| $104.1 |
| | | | | | | | | | Liabilities: | | | | | | | | | Gas hedge contracts | |
| $0.1 |
| |
| $— |
| |
| $— |
| |
| $0.1 |
|
| | | | | | | | | | | | | | | | | | 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 year ended December 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 |
| Issuances of financial transmission rights | 11.8 |
| | 20.0 |
| | 4.5 |
| | 3.7 |
| | 6.1 |
| Gains (losses) included as a regulatory liability/asset | 13.9 |
| | 50.8 |
| | 21.9 |
| | 9.2 |
| | (16.0 | ) | Settlements | (25.3 | ) | | (72.7 | ) | | (26.3 | ) | | (13.8 | ) | | 6.0 |
| Balance as of December 31, |
| $3.4 |
| |
| $8.3 |
| |
| $2.2 |
| |
| $1.3 |
| |
| ($0.5 | ) |
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 year ended December 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 |
| Issuances of financial transmission rights | 8.9 |
| | 31.0 |
| | 9.6 |
| | 5.0 |
| | 7.1 |
| Gains included as a regulatory liability/asset | 30.4 |
| | 16.5 |
| | 8.2 |
| | 5.2 |
| | 15.5 |
| Settlements | (41.7 | ) | | (45.8 | ) | | (18.9 | ) | | (9.1 | ) | | (22.3 | ) | Balance as of December 31, |
| $3.0 |
| |
| $10.2 |
| |
| $2.1 |
| |
| $2.2 |
| |
| $3.4 |
|
|
| 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 December 31, 2018 and 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) | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | | | | | Assets: | | | | | | | | | | | Natural gas swaps and options | | Prepayments and other | | $0.3 | | $— | | $0.3 | | Entergy Louisiana | Natural gas swaps and options | | Other deferred debits and other assets | | $1.6 | | $— | | $1.6 | | Entergy Louisiana | | | | | | | | | | | | Financial transmission rights | | Prepayments and other | | $3.6 | | ($0.2) | | $3.4 | | Entergy Arkansas | Financial transmission rights | | Prepayments and other | | $8.4 | | ($0.1) | | $8.3 | | Entergy Louisiana | Financial transmission rights | | Prepayments and other | | $2.2 | | $— | | $2.2 | | Entergy Mississippi | Financial transmission rights | | Prepayments and other | | $1.3 | | $— | | $1.3 | | Entergy New Orleans | | | | | | | | | | | | Liabilities: | | | | | | | | | | | Financial transmission rights | | Other current liabilities | | $0.9 | | ($1.4) | | ($0.5) | | Entergy Texas | | | | | | | | | | | | Natural gas swaps and options | | Other current liabilities | | $1.1 | | $— | | $1.1 | | Entergy Louisiana | Natural gas swaps | | Other current liabilities | | $0.1 | | $— | | $0.1 | | Entergy New Orleans |
| | | | | | | | | | | | Instrument | | Balance Sheet Location | | Gross Fair Value (a) | | Offsetting Position (b) | | Net Fair Value (c) (d) | | Registrant | | | | | | | | | | | | 2017 | | | | | | | | | | | 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 December 31, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi, and $4.1 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 years ended December 31, 2018, 2017, and 2016 are as follows: | | | | | | | | Instrument | | Income Statement Location | | Amount of gain (loss) recorded in the income statement | | Registrant | | | | | (In Millions) | | | 2018 | | | | | | | Natural gas swaps and options | | Fuel, fuel-related expenses, and gas purchased for resale | | $4.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.2 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $0.2 | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $25.3 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $72.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $26.3 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $13.8 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | ($6.0) | (b) | Entergy Texas | | | | | | | | 2017 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($25.4) | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($5.2) | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.3) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $41.7 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $45.8 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $18.9 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $9.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $22.3 | (b) | Entergy Texas | | | | | | | | 2016 | | | | | | | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $8.4 | (a) | Entergy Louisiana | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | $3.1 | (a) | Entergy Mississippi | Natural gas swaps | | Fuel, fuel-related expenses, and gas purchased for resale | | ($0.4) | (a) | Entergy New Orleans | | | | | | | | Financial transmission rights | | Purchased power | | $23.2 | (b) | Entergy Arkansas | Financial transmission rights | | Purchased power | | $69.7 | (b) | Entergy Louisiana | Financial transmission rights | | Purchased power | | $16.6 | (b) | Entergy Mississippi | Financial transmission rights | | Purchased power | | $4.1 | (b) | Entergy New Orleans | Financial transmission rights | | Purchased power | | $10.2 | (b) | Entergy Texas |
| | (a) | Due to regulatory treatment, the natural gas swaps and options 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 and options 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: | | | | | | | | | Securitization recovery trust account | |
| $40.2 |
| |
| $— |
| |
| $— |
| |
| $40.2 |
| | | | | | | | | | Liabilities: | | | | | | | | | Financial transmission rights | |
| $— |
| |
| $— |
| |
| $0.5 |
| |
| $0.5 |
|
| | | | | | | | | | | | | | | | | | 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 year ended December 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 |
| Issuances of financial transmission rights | 11.8 |
| | 20.0 |
| | 4.5 |
| | 3.7 |
| | 6.1 |
| Gains (losses) included as a regulatory liability/asset | 13.9 |
| | 50.8 |
| | 21.9 |
| | 9.2 |
| | (16.0 | ) | Settlements | (25.3 | ) | | (72.7 | ) | | (26.3 | ) | | (13.8 | ) | | 6.0 |
| Balance as of December 31, |
| $3.4 |
| |
| $8.3 |
| |
| $2.2 |
| |
| $1.3 |
| |
| ($0.5 | ) |
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 year ended December 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 |
| Issuances of financial transmission rights | 8.9 |
| | 31.0 |
| | 9.6 |
| | 5.0 |
| | 7.1 |
| Gains included as a regulatory liability/asset | 30.4 |
| | 16.5 |
| | 8.2 |
| | 5.2 |
| | 15.5 |
| Settlements | (41.7 | ) | | (45.8 | ) | | (18.9 | ) | | (9.1 | ) | | (22.3 | ) | Balance as of December 31, |
| $3.0 |
| |
| $10.2 |
| |
| $2.1 |
| |
| $2.2 |
| |
| $3.4 |
|
|
| 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 | |
| $95.6 |
| |
| $— |
| |
| $— |
| |
| $95.6 |
| Decommissioning trust funds (a): | | | | | | | | | Equity securities | | 4.4 |
| | — |
| | — |
| | 4.4 |
| Debt securities | | 224.5 |
| | 139.7 |
| | — |
| | 364.2 |
| Common trusts (b) | | | | | | | | 500.9 |
| | |
| $324.5 |
| |
| $139.7 |
| |
| $— |
| |
| $965.1 |
|
| | | | | | | | | | | | | | | | | | 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 |
|
|