Risk Management and Fair Values

9 Months Ended

Sep. 30, 2011

Risk Management and Fair Values [Abstract]

RISK MANAGEMENT AND FAIR VALUES

NOTE 8. RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Market and Commodity Risks

     In the normal course of business, Entergy is exposed to a number of market and commodity risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular instrument or commodity. All financial and commodity-related instruments, including derivatives, are subject to market risk. Entergy is subject to a number of commodity and market risks, including:

Type of Risk	Affected Businesses
Power price risk	Utility, Entergy Wholesale Commodities
Fuel price risk	Utility, Entergy Wholesale Commodities
Foreign currency exchange rate risk	Entergy Wholesale Commodities
Equity price and interest rate risk — investments	Utility, Entergy Wholesale Commodities

     Entergy manages a portion of these risks using derivative instruments, some of which are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sales transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity futures, forwards, swaps, and options; foreign currency forwards; and interest rate swaps. Entergy has entered into financially settled option contracts to manage market risk under certain hedging transactions, which may or may not be designated as hedging instruments. Entergy enters into derivatives only to manage natural risks inherent in its physical or financial assets or liabilities.

     Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Gulf States Louisiana, Entergy Louisiana, and Entergy New Orleans) and Entergy Mississippi primarily through the purchase of short-term natural gas swaps. These swaps are marked-to-market with offsetting regulatory assets or liabilities. The notional volumes of these swaps are based on a portion of projected annual exposure to gas for electric generation and projected winter purchases for gas distribution at Entergy Gulf States Louisiana and Entergy New Orleans.

     Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives.

Derivatives

     The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of September 30, 2011 are as follows:

Instrument	Balance Sheet Location	Fair Value (a)	Offset (a)	Business
Derivatives designated as hedging instruments
Assets:
Electricity forwards, swaps and options	Prepayments and other (current portion)	$93 million	($11) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other deferred debits and other assets (non-current portion)	$23 million	($23) million	Entergy Wholesale Commodities
Liabilities:
Electricity forwards, swaps and options	Other current liabilities (current portion)	$11 million	($11) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other non-current liabilities (non-current portion)	$49 million	($25) million	Entergy Wholesale Commodities

Instrument	Balance Sheet Location	Fair Value (a)	Offset (a)	Business
Derivatives not designated as hedging instruments
Assets:
Electricity forwards, swaps and options	Prepayments and other (current portion)	$21 million	($8) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other deferred debits and other assets (non-current portion)	$3 million	($3) million	Entergy Wholesale Commodities
Liabilities:
Electricity forwards, swaps and options	Other current liabilities (current portion)	$8 million	($8) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other non-current liabilities (non-current portion)	$2 million	($1) million	Entergy Wholesale Commodities
Natural gas swaps	Other current liabilities	$16 million	$ —	Utility

     The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2010 are as follows:

Instrument	Balance Sheet Location	Fair Value (a)	Offset (a)	Business
Derivatives designated as hedging instruments
Assets:
Electricity forwards, swaps and options	Prepayments and other (current portion)	$160 million	($7) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other deferred debits and other assets (non-current portion)	$82 million	($29) million	Entergy Wholesale Commodities
Liabilities:
Electricity forwards, swaps and options	Other current liabilities (current portion)	$5 million	($5) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other non-current liabilities (non-current portion)	$47 million	($30) million	Entergy Wholesale Commodities

Instrument	Balance Sheet Location	Fair Value (a)	Offset (a)	Business
Derivatives not designated as hedging instruments
Assets:
Electricity forwards, swaps and options	Prepayments and other (current portion)	$2 million	$ —	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other deferred debits and other assets (non-current portion)	$14 million	($8) million	Entergy Wholesale Commodities
Liabilities:
Electricity forwards, swaps and options	Other current liabilities (current portion)	$2 million	($2) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other non-current liabilities (non-current portion)	$7 million	($7) million	Entergy Wholesale Commodities
Natural gas swaps	Other current liabilities	$2 million	$ —	Utility

(a) The balances of derivative assets and liabilities in these tables are presented gross. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented on the Entergy Consolidated Balance Sheets on a net basis in accordance with accounting guidance for Derivatives and Hedging.

     The effect of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended September 30, 2011 and 2010 are as follows:

			Amount of gain
	Amount of gain		reclassified from
	recognized in OCI		accumulated OCI into
Instrument	(effective portion)	Income Statement location	income (effective portion)
2011
Electricity forwards, swaps and options	$40 million	Competitive businesses operating revenues	$48 million
2010
Electricity forwards, swaps and options	$118 million	Competitive businesses operating revenues	$43 million

     The effect of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the nine months ended September 30, 2011 and 2010 are as follows:

			Amount of gain
	Amount of gain (loss)		reclassified from
	recognized in OCI		accumulated OCI into
Instrument	(effective portion)	Income Statement location	income (effective portion)
2011
Electricity forwards, swaps and options	($14) million	Competitive businesses operating revenues	$109 million
2010
Electricity forwards, swaps and options	$315 million	Competitive businesses operating revenues	$146 million

     Electricity over-the-counter instruments that financially settle against day-ahead power pool prices are used to manage price exposure for Entergy Wholesale Commodities generation. Based on market prices as of September 30, 2011, cash flow hedges relating to power sales totaled $63 million of net unrealized gains. Approximately $81 million is expected to be reclassified from accumulated other comprehensive income (OCI) to operating revenues in the next twelve months. The actual amount reclassified from accumulated OCI could vary, however, due to future changes in market prices. Gains totaling approximately $48 million and $43 million were realized on the maturity of cash flow hedges, before taxes of $17 million and $15 million, for the three months ended September 30, 2011 and 2010, respectively. Gains totaling approximately $109 million and $146 million were realized on the maturity of cash flow hedges, before taxes of $38 million and $51 million, for the nine months ended September 30, 2011 and 2010, respectively. Unrealized gains or losses recorded in OCI result from hedging power output at the Entergy Wholesale Commodities power plants. The related gains or losses from hedging power are included in operating revenues when realized. The maximum length of time over which Entergy is currently hedging the variability in future cash flows with derivatives for forecasted power transactions at September 30, 2011 is approximately 3.25 years. Planned generation currently sold forward from Entergy Wholesale Commodities power plants is 94% for the remaining quarter of 2011, of which approximately 46% is sold under financial derivatives and the remainder under normal purchase/sale contracts. The change in the value of Entergy’s cash flow hedges due to ineffectiveness was $6.2 million and $8.4 million for the three and nine months ended September 30, 2011, respectively. The change in the value of Entergy’s cash flow hedges due to ineffectiveness was insignificant for the three and nine months ended September 30, 2010. The ineffective portion of cash flow hedges is recorded in competitive business operating revenues. Certain of the agreements to sell the power produced by Entergy Wholesale Commodities power plants contain provisions that require an Entergy subsidiary to provide collateral to secure its obligations when the current market prices exceed the contracted power prices. The primary form of collateral to satisfy these requirements is an Entergy Corporation guaranty. As of September 30, 2011, hedge contracts with three counterparties were in a liability position (approximately $3 million total), but were significantly below the amount of the guarantee provided under the contract and no cash collateral was required. If the Entergy Corporation credit rating falls below investment grade, the effect of the corporate guarantee is ignored and Entergy would have to post collateral equal to the estimated outstanding liability under the contract at the applicable date. Entergy may effectively liquidate a cash flow hedge instrument by entering into a contract offsetting the original hedge, and then de-designating the original hedge in this situation. Gains or losses accumulated in OCI prior to de-designation continue to be deferred in OCI until they are included in income as the original hedged transaction occurs. From the point of de-designation, the gains or losses on the original hedge and the offsetting contract are recorded as assets or liabilities on the balance sheet and offset as they flow through to earnings.

     Natural gas over-the-counter swaps that financially settle against NYMEX futures are used to manage fuel price volatility for the Utility’s Louisiana and Mississippi customers. All benefits or costs of the program are recorded in fuel costs. The total volume of natural gas swaps outstanding as of September 30, 2011 is 27,100,000 MMBtu for Entergy, 7,660,000 MMBtu for Entergy Gulf States Louisiana, 10,960,000 MMBtu for Entergy Louisiana, and 6,250,000 MMBtu for Entergy Mississippi, and 2,230,000 MMBtu for Entergy New Orleans. Credit support for these natural gas swaps is covered by master agreements that do not require collateralization based on mark-to-market value, but do carry adequate assurance language that may lead to collateralization requests.

     The effect of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended September 30, 2011 and 2010 is as follows:

	Amount of gain (loss)	Income Statement	Amount of gain (loss)
Instrument	recognized in OCI	location	recorded in income
2011
Natural gas swaps	$ —	Fuel, fuel-related expenses, and gas purchased for resale	($19) million
Electricity forwards, swaps and options de-designated as hedged items	($2) million	Competitive business operating revenues	$2 million
2010
Natural gas swaps	$ —	Fuel, fuel-related expenses, and gas purchased for resale	($28) million
Electricity forwards, swaps and options de-designated as hedged items	$12 million	Competitive business operating revenues	$—

     The effect of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the nine months ended September 30, 2011 and 2010 is as follows:

	Amount of gain	Income Statement	Amount of gain (loss)
Instrument	recognized in OCI	location	recorded in income
2011
Natural gas swaps	$ —	Fuel, fuel-related expenses, and gas purchased for resale	($31) million
Electricity forwards, swaps and options de-designated as hedged items	$4 million	Competitive business operating revenues	$8 million
2010
Natural gas swaps	$ —	Fuel, fuel-related expenses, and gas purchased for resale	($91) million
Electricity forwards, swaps and options de-designated as hedged items	$15 million	Competitive business operating revenues	$—

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 offsetting regulatory assets or liabilities. The gains or losses recorded as fuel expenses when the swaps are settled are recovered through fuel cost recovery mechanisms.

     The fair values of the Registrant Subsidiaries’ derivative instruments on their balance sheets as of September 30, 2011 are as follows:

Instrument	Balance Sheet Location	Fair Value	Registrant
Derivatives not designated as hedging instruments
Liabilities:
Natural gas swaps	Other current liabilities	$4.4 million	Entergy Gulf States Louisiana
Natural gas swaps	Other current liabilities	$6.4 million	Entergy Louisiana
Natural gas swaps	Other current liabilities	$3.6 million	Entergy Mississippi
Natural gas swaps	Other current liabilities	$1.3 million	Entergy New Orleans

     The fair values of the Registrant Subsidiaries’ derivative instruments on their balance sheets as of December 31, 2010 are as follows:

Instrument	Balance Sheet Location	Fair Value	Registrant
Derivatives not designated as hedging instruments
Assets:
Natural gas swaps	Prepayments and other	$0.3 million	Entergy Mississippi
Liabilities:
Natural gas swaps	Other current liabilities	$1.0 million	Entergy Gulf States Louisiana
Natural gas swaps	Other current liabilities	$0.4 million	Entergy Louisiana
Natural gas swaps	Other current liabilities	$0.5 million	Entergy New Orleans

     The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their statements of income for the three months ended September 30, 2011 and 2010 are as follows:

		Amount of loss
		recorded
Instrument	Statement of Income Location	in income	Registrant
2011
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($5.0) million	Entergy Gulf States Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($7.5) million	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($4.4) million	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($1.1) million	Entergy New Orleans
2010
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($8.2) million	Entergy Gulf States Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($11.7) million	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($6.4) million	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($2.1) million	Entergy New Orleans

     The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their statements of income for the nine months ended September 30, 2011 and 2010 are as follows:

		Amount of
		loss recorded
Instrument	Statement of Income Location	in income	Registrant
2011
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($9.2) million	Entergy Gulf States Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($12.5) million	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($6.9) million	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($2.0) million	Entergy New Orleans
2010
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($24.5) million	Entergy Gulf States Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($38.7) million	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($26.0) million	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($2.1) million	Entergy New Orleans

Fair Values

     The estimated fair values of Entergy’s financial instruments and derivatives are determined using bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments other than forward energy contracts held by competitive businesses are reflected in future rates and therefore do not accrue to the benefit or detriment of shareholders. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments.

     Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value.

     Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are:

• Level 1 — Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents, debt instruments, and gas hedge contracts.

• Level 2 — Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following:

– quoted prices for similar assets or liabilities in active markets;

– quoted prices for identical assets or liabilities in inactive markets;

– inputs other than quoted prices that are observable for the asset or liability; or

– inputs that are derived principally from or corroborated by observable market data by correlation or other means.

	Level 2 consists primarily of individually owned debt instruments or shares in common trusts. Common trust funds are stated at estimated fair value based on the fair market value of the underlying investments.
•	Level 3 — Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of derivative power contracts used as cash flow hedges of power sales at merchant power plants.

The values for the cash flow hedges that are recorded as derivative contract assets or liabilities are based on both observable inputs including public market prices and unobservable inputs such as model-generated prices for longer-term markets and are classified as Level 3 assets and liabilities. The amounts reflected as the fair value of derivative assets or liabilities are based on the estimated amount that the contracts are in-the-money at the balance sheet date (treated as an asset) or out-of-the-money at the balance sheet date (treated as a liability) and would equal the estimated amount receivable or payable by Entergy if the contracts were settled at that date. These derivative contracts include cash flow hedges that swap fixed for floating cash flows for sales of the output from Entergy’s Entergy Wholesale Commodities business. The fair values are based on the mark-to-market comparison between the fixed contract prices and the floating prices determined each period from a combination of quoted forward power market prices for the period for which such curves are available, and model-generated prices using quoted forward gas market curves and estimates regarding heat rates to convert gas to power and the costs associated with the transportation of the power from the plants’ bus bar to the contract’s point of delivery, generally a power market hub, for the period thereafter. The differences between the fixed price in the swap contract and these market-related prices multiplied by the volume specified in the contract and discounted at the counterparties’ credit adjusted risk free rate are recorded as derivative contract assets or liabilities. As of September 30, 2011, Entergy had in-the-money derivative contracts with a fair value of $73 million with counterparties or their guarantor who are all currently investment grade. $3 million of the derivative contracts as of September 30, 2011 are out-of-the-money contracts supported by corporate guarantees, which would require additional cash or letters of credit in the event of a decrease in Entergy Corporation’s credit rating to below investment grade.

     The following table sets forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of September 30, 2011 and December 31, 2010. 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.

2011	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	851	$	—	$	—	$	851
Decommissioning trust funds (a):
Equity securities		371		1,559		—		1,930
Debt securities		656		980		—		1,636
Power contracts		—		—		95		95
Securitization recovery trust account		43		—		—		43
Storm reserve escrow account		334		—		—		334
	$	2,255	$	2,539	$	95	$	4,889
Liabilities:
Gas hedge contracts	$	16	$	—	$	—	$	16
Power contracts		—		—		25		25
	$	16	$	—	$	25	$	41

2010	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	1,218	$	—	$	—	$	1,218
Decommissioning trust funds (a):
Equity securities		387		1,689		—		2,076
Debt securities		497		1,023		—		1,520
Power contracts		—		—		214		214
Securitization recovery trust account		43		—		—		43
Storm reserve escrow account		329		—		—		329
	$	2,474	$	2,712	$	214	$	5,400
Liabilities:
Power contracts	$	—	$	—	$	17	$	17
Gas hedge contracts		2		—		—		2
	$	2	$	—	$	17	$	19

     The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended September 30, 2011 and 2010:

	2011			2010
	(In Millions)
Balance as of beginning of period	$	98		$	297
Unrealized gains from price changes		3			124
Unrealized gains on originations		17			6
Realized losses on settlements		(48	)		(43	)
Balance as of September 30,	$	70		$	384

     The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the nine months ended September 30, 2011 and 2010:

	2011			2010
	(In Millions)
Balance as of January 1,	$	197		$	200
Unrealized gains/(losses) from price changes		(33	)		316
Unrealized gains on originations		15			14
Realized losses on settlements		(109	)		(146	)
Balance as of September 30,	$	70		$	384

     The following table sets forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets that are accounted for at fair value on a recurring basis as of September 30, 2011 and December 31, 2010. 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.

Entergy Arkansas

2011	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Decommissioning trust funds (a):
Equity securities	$	9.8	$	288.3	$	—	$	298.1
Debt securities		77.2		129.5		—		206.7
Securitization recovery trust account		7.9		—		—		7.9
	$	94.9	$	417.8	$	—	$	512.7

2010	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	101.9	$	—	$	—	$	101.9
Decommissioning trust funds (a):
Equity securities		3.4		316.3		—		319.7
Debt securities		41.4		159.7		—		201.1
Securitization recovery trust account		2.4		—		—		2.4
	$	149.1	$	476.0	$	—	$	625.1

Entergy Gulf States Louisiana

2011	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	25.6	$	—	$	—	$	25.6
Decommissioning trust funds (a):
Equity securities		6.1		207.5		—		213.6
Debt securities		41.1		136.7		—		177.8
Storm reserve escrow account		90.2		—		—		90.2
	$	163.0	$	344.2	$	—	$	507.2
Liabilities:
Gas hedge contracts	$	4.4	$	—	$	—	$	4.4

2010	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	154.9	$	—	$	—	$	154.9
Decommissioning trust funds (a):
Equity securities		3.8		231.1		—		234.9
Debt securities		32.2		126.5		—		158.7
Storm reserve escrow account		90.1		—		—		90.1
	$	281.0	$	357.6	$	—	$	638.6
Liabilities:
Gas hedge contracts	$	1.0	$	—	$	—	$	1.0

Entergy Louisiana

2011	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	51.4	$	—	$	—	$	51.4
Decommissioning trust funds (a):
Equity securities		3.2		129.0		—		132.2
Debt securities		47.5		55.9		—		103.4
Storm reserve escrow account		201.2		—		—		201.2
	$	303.3	$	184.9	$	—	$	488.2
Liabilities:
Gas hedge contracts	$	6.4	$	—	$	—	$	6.4

2010	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	122.5	$	—	$	—	$	122.5
Decommissioning trust funds (a):
Equity securities		1.3		142.6		—		143.9
Debt securities		45.7		50.9		—		96.6
Storm reserve escrow account		201.0		—		—		201.0
	$	370.5	$	193.5	$	—	$	564.0
Liabilities:
Gas hedge contracts	$	0.4	$	—	$	—	$	0.4

Entergy Mississippi

2011	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Storm reserve escrow account	$	31.8	$	—	$	—	$	31.8
Liabilities:
Gas hedge contracts	$	3.6	$	—	$	—	$	3.6

2010	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Gas hedge contracts	$	0.3	$	—	$	—	$	0.3
Storm reserve escrow account		31.9		—		—		31.9
	$	32.2	$	—	$	—	$	32.2

Entergy New Orleans

2011	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	41.9	$	—	$	—	$	41.9
Storm reserve escrow account		10.7		—		—		10.7
	$	52.6	$	—	$	—	$	52.6
Liabilities:
Gas hedge contracts	$	1.3	$	—	$	—	$	1.3

2010	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	53.6	$	—	$	—	$	53.6
Storm reserve escrow account		6.0		—		—		6.0
	$	59.6	$	—	$	—	$	59.6
Liabilities:
Gas hedge contracts	$	0.5	$	—	$	—	$	0.5

Entergy Texas

2011	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	39.8	$	—	$	—	$	39.8
Securitization recovery trust account		35.5		—		—		35.5
	$	75.3	$	—	$	—	$	75.3

2010	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	33.6	$	—	$	—	$	33.6
Securitization recovery trust account		40.6		—		—		40.6
	$	74.2	$	—	$	—	$	74.2

System Energy

2011	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	162.3	$	—	$	—	$	162.3
Decommissioning trust funds (a):
Equity securities		0.3		206.8		—		207.1
Debt securities		126.9		59.2		—		186.1
	$	289.5	$	266.0	$	—	$	555.5

2010	Level 1		Level 2		Level 3		Total
			(In Millions)
Assets:
Temporary cash investments	$	262.9	$	—	$	—	$	262.9
Decommissioning trust funds (a):
Equity securities		3.1		220.9		—		224.0
Debt securities		95.7		68.2		—		163.9
	$	361.7	$	289.1	$	—	$	650.8

(a) The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indexes. Fixed income securities are held in various governmental and corporate securities with an average coupon rate of 4.15%. See Note 9 for additional information on the investment portfolios.