XML 69 R28.htm IDEA: XBRL DOCUMENT v3.7.0.1
Risk Management And Fair Values (Tables)
 3 Months Ended
Mar. 31, 2017
Fair Values Of Derivative Instruments
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of March 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)
 
$13
 
($13)
 
$—
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$16
 
($9)
 
$7
 
Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities
(current portion)
 
$24
 
($14)
 
$10
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$13
 
($9)
 
$4
 
Entergy Wholesale Commodities
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$20
 
($5)
 
$15
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$2
 
($1)
 
$1
 
Entergy Wholesale Commodities
Natural gas swaps
 
Prepayments and other
 
$5
 
$—
 
$5
 
Utility
Financial transmission rights
 
Prepayments and other
 
$9
 
($1)
 
$8
 
Utility and Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities(current portion)
 
$8
 
($4)
 
$4
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$2
 
($2)
 
$—
 
Entergy Wholesale Commodities

The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2016 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)
 
$25
 
($14)
 
$11
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$6
 
($6)
 
$—
 
Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$11
 
($10)
 
$1
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$16
 
($7)
 
$9
 
Entergy Wholesale Commodities
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Prepayments and other (current portion)
 
$18
 
($13)
 
$5
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other deferred debits and other assets (non-current portion)
 
$5
 
($5)
 
$—
 
Entergy Wholesale Commodities
Natural gas swaps
 
Prepayments and other
 
$13
 
$—
 
$13
 
Utility
Financial transmission rights
 
Prepayments and other
 
$22
 
($1)
 
$21
 
Utility and Entergy Wholesale Commodities
Liabilities:
 
 
 
 
 
 
 
 
 
 
Electricity swaps and options
 
Other current liabilities (current portion)
 
$18
 
($17)
 
$1
 
Entergy Wholesale Commodities
Electricity swaps and options
 
Other non-current liabilities (non-current portion)
 
$4
 
($4)
 
$—
 
Entergy Wholesale Commodities


(a)
Represents the gross amounts of recognized assets/liabilities
(b)
Represents the netting of fair value balances with the same counterparty
(c)
Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet
(d)
Excludes cash collateral in the amount of $1 million posted and $3 million held as of March 31, 2017 and $2 million posted as of December 31, 2016.
Derivative Instruments Designated As Cash Flow Hedges On Consolidated Statements Of Income



The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended March 31, 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)
2017
 
 
 
 
 
 
Electricity swaps and options
 
$50
 
Competitive businesses operating revenues
 
$51
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Electricity swaps and options
 
$139
 
Competitive businesses operating revenues
 
$154

(a)
Before taxes of $18 million and $54 million for the three months ended March 31, 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 three months ended March 31, 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)
2017
 

 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
($7)
Financial transmission rights

$—

Purchased power expense
(b)
$30
Electricity swaps and options
 
$9
(c)
Competitive business operating revenues
 
$—
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
$—
 
Fuel, fuel-related expenses, and gas purchased for resale
(a)
($24)
Financial transmission rights
 
$—
 
Purchased power expense
(b)
$21
Electricity swaps and options
 
$25
(c)
Competitive business operating revenues
 
$—


(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
(c)
Amount of gain (loss) recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items.
Assets and liabilities at fair value on a recurring basis
The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of March 31, 2017 and December 31, 2016.  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.
2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$1,022

 

$—

 

$—

 

$1,022

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
512

 
—

 
—

 
512

Debt securities
 
966

 
1,264

 
—

 
2,230

Common trusts (b)
 
 
 
 
 
 
 
3,927

Power contracts
 
—

 
—

 
23

 
23

Securitization recovery trust account
 
47

 
—

 
—

 
47

Escrow accounts
 
415

 
—

 
—

 
415

Gas hedge contracts
 
5

 
—

 
—

 
5

Financial transmission rights
 
—

 
—

 
8

 
8

 
 

$2,967

 

$1,264

 

$31

 

$8,189

Liabilities:
 
 
 
 
 
 
 
 
Power contracts
 

$—

 

$—

 

$18

 

$18


2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$1,058

 

$—

 

$—

 

$1,058

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
480

 
—

 
—

 
480

Debt securities
 
985

 
1,228

 
—

 
2,213

Common trusts (b)
 
 
 
 
 
 
 
3,031

Power contracts
 
—

 
—

 
16

 
16

Securitization recovery trust account
 
46

 
—

 
—

 
46

Escrow accounts
 
433

 
—

 
—

 
433

Gas hedge contracts
 
13

 
—

 
—

 
13

Financial transmission rights
 
—

 
—

 
21

 
21

 
 

$3,015

 

$1,228

 

$37

 

$7,311

Liabilities:
 
 
 
 
 
 
 
 
Power contracts
 

$—

 

$—

 

$11

 

$11



(a)
The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices.  Fixed income securities are held in various governmental and corporate securities.  See Note 9 to the financial statements for additional information on the investment portfolios.
(b)
Common trust funds are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
 
 
 
 
 
 
 
 

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2017 and 2016:
 
2017
 
2016
 
Power Contracts
 
Financial transmission rights
 
Power Contracts
 
Financial transmission rights

(In Millions)
Balance as of January 1,

$5

 

$21

 

$189

 

$23

Total gains (losses) for the period (a)
 
 
 
 
 
 
 
Included in OCI
50

 
—

 
139

 
—

Included as a regulatory liability/asset
—

 
17

 
—

 
7

Settlements
(50
)
 
(30
)
 
(145
)
 
(21
)
Balance as of March 31,

$5

 

$8

 

$183

 

$9



(a)
Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period is $0.4 million for the three months ended March 31, 2017 and $6 million for the three months ended March 31, 2016.
Fair Value Inputs Liabilities Quantitative Information
The following table sets forth a description of the types of transactions classified as Level 3 in the fair value hierarchy and significant unobservable inputs to each which cause that classification as of March 31, 2017:
Transaction Type
 
Fair Value
as of
March 31,
2017
 
Significant
Unobservable Inputs
 
Range
from
Average
%
 
Effect on
Fair Value
 
 
(In Millions)
 
 
 
 
 
 
(In Millions)
Power contracts - electricity swaps
 
$5
 
Unit contingent discount
 
+/-
4%
 
$1
Entergy Arkansas [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$3.8
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$0.7
 
Entergy Mississippi
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$0.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$4.1
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$1.3
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$0.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$1.0
 
Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas

(a)
As of March 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. As of December 31, 2016, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
 
 
 
 
 
 
 



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2017 and 2016 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2017
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($19.3)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.5)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$10.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$0.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$0.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$1.5
(b)
Entergy Texas


(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Arkansas
2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 

$6.1

 

$—

 

$—

 

$6.1

Debt securities
 
106.7

 
203.3

 
—

 
310.0

Common trusts (b)
 
 
 
 
 
 
 
551.6

Securitization recovery trust account
 
7.8

 
—

 
—

 
7.8

Escrow accounts
 
4.7

 
—

 
—

 
4.7

Financial transmission rights
 
—

 
—

 
0.9

 
0.9

 
 

$125.3

 

$203.3

 

$0.9

 

$881.1


2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 

$3.6

 

$—

 

$—

 

$3.6

Debt securities
 
112.5

 
196.8

 
—

 
309.3

Common trusts (b)
 
 
 
 
 
 
 
521.8

Securitization recovery trust account
 
4.1

 
—

 
—

 
4.1

Escrow accounts
 
7.1

 
—

 
—

 
7.1

Financial transmission rights
 
—

 
—

 
5.4

 
5.4

 
 

$127.3

 

$196.8

 

$5.4

 

$851.3
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
 
 
 
 
 
 
 
 
 
 

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

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

 
10.8

 
1.2

 
1.8

 
3.2

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

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2016.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Gains (losses) included as a regulatory liability/asset
3.6

 
5.3

 
(0.7
)
 
(0.4
)
 
0.2

Settlements
(7.8
)
 
(10.5
)
 
(0.8
)
 
(0.5
)
 
(1.5
)
Balance as of March 31,

$3.7

 

$3.3

 

$0.9

 

$0.6

 

$0.9
Entergy Louisiana [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$3.8
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$0.7
 
Entergy Mississippi
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$0.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$4.1
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$1.3
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$0.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$1.0
 
Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas

(a)
As of March 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. As of December 31, 2016, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
 
 
 
 
 
 
 



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2017 and 2016 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2017
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($19.3)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.5)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$10.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$0.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$0.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$1.5
(b)
Entergy Texas


(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Louisiana
2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$64.7

 

$—

 

$—

 

$64.7

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
7.6

 
—

 
—

 
7.6

Debt securities
 
132.0

 
307.5

 
—

 
439.5

Common trusts (b)
 
 
 
 
 
 
 
743.0

Escrow accounts
 
292.5

 
—

 
—

 
292.5

Securitization recovery trust account
 
8.4

 
—

 
—

 
8.4

Gas hedge contracts
 
3.8

 
—

 
—

 
3.8

Financial transmission rights
 
—

 
—

 
4.1

 
4.1

 
 

$509.0

 

$307.5

 

$4.1

 

$1,563.6


2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$163.9

 

$—

 

$—

 

$163.9

Decommissioning trust funds (a):
 
 

 
 

 
 

 
 

Equity securities
 
13.9

 
—

 
—

 
13.9

Debt securities
 
132.3

 
292.5

 
—

 
424.8

Common trusts (b)
 
 
 
 
 
 
 
702.0

Escrow accounts
 
305.7

 
—

 
—

 
305.7

Securitization recovery trust account
 
2.8

 
—

 
—

 
2.8

Gas hedge contracts
 
10.9

 
—

 
—

 
10.9

Financial transmission rights
 
—

 
—

 
8.5

 
8.5

 
 

$629.5

 

$292.5

 

$8.5

 

$1,632.5
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
 
 
 
 
 
 
 
 
 
 

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

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

 
10.8

 
1.2

 
1.8

 
3.2

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

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2016.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Gains (losses) included as a regulatory liability/asset
3.6

 
5.3

 
(0.7
)
 
(0.4
)
 
0.2

Settlements
(7.8
)
 
(10.5
)
 
(0.8
)
 
(0.5
)
 
(1.5
)
Balance as of March 31,

$3.7

 

$3.3

 

$0.9

 

$0.6

 

$0.9
Entergy Mississippi [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$3.8
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$0.7
 
Entergy Mississippi
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$0.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$4.1
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$1.3
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$0.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$1.0
 
Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas

(a)
As of March 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. As of December 31, 2016, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
 
 
 
 
 
 
 



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2017 and 2016 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2017
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($19.3)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.5)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$10.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$0.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$0.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$1.5
(b)
Entergy Texas


(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Mississippi
2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Escrow accounts
 

$31.8

 

$—

 

$—

 

$31.8

Gas hedge contracts
 
0.7

 
—

 
—

 
0.7

Financial transmission rights
 
—

 
—

 
1.3

 
1.3

 
 

$32.5

 

$—

 

$1.3

 

$33.8


2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$76.8

 

$—

 

$—

 

$76.8

Escrow accounts
 
31.8

 
—

 
—

 
31.8

Gas hedge contracts
 
2.3

 
—

 
—

 
2.3

Financial transmission rights
 
—

 
—

 
3.2

 
3.2

 
 

$110.9

 

$—

 

$3.2

 

$114.1
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
 
 
 
 
 
 
 
 
 
 

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

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

 
10.8

 
1.2

 
1.8

 
3.2

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

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2016.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Gains (losses) included as a regulatory liability/asset
3.6

 
5.3

 
(0.7
)
 
(0.4
)
 
0.2

Settlements
(7.8
)
 
(10.5
)
 
(0.8
)
 
(0.5
)
 
(1.5
)
Balance as of March 31,

$3.7

 

$3.3

 

$0.9

 

$0.6

 

$0.9
Entergy New Orleans [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$3.8
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$0.7
 
Entergy Mississippi
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$0.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$4.1
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$1.3
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$0.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$1.0
 
Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas

(a)
As of March 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. As of December 31, 2016, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
 
 
 
 
 
 
 



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2017 and 2016 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2017
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($19.3)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.5)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$10.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$0.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$0.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$1.5
(b)
Entergy Texas


(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy New Orleans
2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$55.0

 

$—

 

$—

 

$55.0

Securitization recovery trust account
 
4.6

 
—

 
—

 
4.6

Escrow accounts
 
86.3

 
—

 
—

 
86.3

Financial transmission rights
 
—

 
—

 
0.5

 
0.5

 
 

$145.9

 

$—

 

$0.5

 

$146.4


2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$103.0

 

$—

 

$—

 

$103.0

Securitization recovery trust account
 
1.7

 
—

 
—

 
1.7

Escrow accounts
 
88.6

 
—

 
—

 
88.6

Gas hedge contracts
 
0.2

 
—

 
—

 
0.2

Financial transmission rights
 
—

 
—

 
1.1

 
1.1

 
 

$193.5

 

$—

 

$1.1

 

$194.6
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
 
 
 
 
 
 
 
 
 
 

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

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

 
10.8

 
1.2

 
1.8

 
3.2

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

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2016.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Gains (losses) included as a regulatory liability/asset
3.6

 
5.3

 
(0.7
)
 
(0.4
)
 
0.2

Settlements
(7.8
)
 
(10.5
)
 
(0.8
)
 
(0.5
)
 
(1.5
)
Balance as of March 31,

$3.7

 

$3.3

 

$0.9

 

$0.6

 

$0.9
Entergy Texas [Member]  
Fair Values Of Derivative Instruments
The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2017 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$3.8
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$0.7
 
Entergy Mississippi
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$0.9
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$4.1
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$1.3
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$0.5
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$1.0
 
Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2016 are as follows:
Instrument
 
Balance Sheet Location
 
Fair Value (a)
 
Registrant
 
 
 
 
(In Millions)
 
 
Assets:
 
 
 
 
 
 
Natural gas swaps
 
Prepayments and other
 
$10.9
 
Entergy Louisiana
Natural gas swaps
 
Prepayments and other
 
$2.3
 
Entergy Mississippi
Natural gas swaps
 
Prepayments and other
 
$0.2
 
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Prepayments and other
 
$5.4
 
Entergy Arkansas
Financial transmission rights
 
Prepayments and other
 
$8.5
 
Entergy Louisiana
Financial transmission rights
 
Prepayments and other
 
$3.2
 
Entergy Mississippi
Financial transmission rights
 
Prepayments and other
 
$1.1
 
Entergy New Orleans
Financial transmission rights
 
Prepayments and other
 
$3.1
 
Entergy Texas

(a)
As of March 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas and $0.1 million for Entergy Mississippi. As of December 31, 2016, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.1 million for Entergy Mississippi.
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income
 
 
 
 
 
 
 



The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2017 and 2016 are as follows:
Instrument

Income Statement Location

Amount of gain
(loss) recorded
in the income statement

Registrant
 
 
 
 
(In Millions)
 
 
2017
 
 
 

 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($6.1)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($1.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.1)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$4.6
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$15.2
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$3.1
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$2.4
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$5.3
(b)
Entergy Texas
 
 
 
 
 
 
 
2016
 
 
 
 
 
 
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($19.3)
(a)
Entergy Louisiana
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($4.1)
(a)
Entergy Mississippi
Natural gas swaps
 
Fuel, fuel-related expenses, and gas purchased for resale
 
($0.5)
(a)
Entergy New Orleans
 
 
 
 
 
 
 
Financial transmission rights
 
Purchased power expense
 
$7.8
(b)
Entergy Arkansas
Financial transmission rights
 
Purchased power expense
 
$10.5
(b)
Entergy Louisiana
Financial transmission rights
 
Purchased power expense
 
$0.8
(b)
Entergy Mississippi
Financial transmission rights
 
Purchased power expense
 
$0.5
(b)
Entergy New Orleans
Financial transmission rights
 
Purchased power expense
 
$1.5
(b)
Entergy Texas


(a)
Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms.
(b)
Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability.  The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.
Assets and liabilities at fair value on a recurring basis
Entergy Texas
2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Securitization recovery trust account
 

$26.3

 

$—

 

$—

 

$26.3

Financial transmission rights
 
—

 
—

 
1.0

 
1.0

 
 

$26.3

 

$—

 

$1.0

 

$27.3


2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$5.0

 

$—

 

$—

 

$5.0

Securitization recovery trust account
 
37.5

 
—

 
—

 
37.5

Financial transmission rights
 
—

 
—

 
3.1

 
3.1

 
 

$42.5

 

$—

 

$3.1

 

$45.6
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy
 
 
 
 
 
 
 
 
 
 

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2017.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$5.4

 

$8.5

 

$3.2

 

$1.1

 

$3.1

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

 
10.8

 
1.2

 
1.8

 
3.2

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

$0.9

 

$4.1

 

$1.3

 

$0.5

 

$1.0


The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2016.
 
Entergy
Arkansas
 
Entergy
Louisiana
 
Entergy
Mississippi
 
Entergy
New
Orleans
 
Entergy
Texas
 
(In Millions)
Balance as of January 1,

$7.9

 

$8.5

 

$2.4

 

$1.5

 

$2.2

Gains (losses) included as a regulatory liability/asset
3.6

 
5.3

 
(0.7
)
 
(0.4
)
 
0.2

Settlements
(7.8
)
 
(10.5
)
 
(0.8
)
 
(0.5
)
 
(1.5
)
Balance as of March 31,

$3.7

 

$3.3

 

$0.9

 

$0.6

 

$0.9
System Energy [Member]  
Assets and liabilities at fair value on a recurring basis
System Energy
2017
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$239.6

 

$—

 

$—

 

$239.6

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
8.1

 
—

 
—

 
8.1

Debt securities
 
245.7

 
61.3

 
—

 
307.0

Common trusts (b)
 
 
 
 
 
 
 
500.9

 
 

$493.4

 

$61.3

 

$—

 

$1,055.6


2016
 
Level 1
 
Level 2
 
Level 3
 
Total
 
 
(In Millions)
Assets:
 
 
 
 
 
 
 
 
Temporary cash investments
 

$245.1

 

$—

 

$—

 

$245.1

Decommissioning trust funds (a):
 
 
 
 
 
 
 
 
Equity securities
 
0.3

 
—

 
—

 
0.3

Debt securities
 
248.3

 
58.3

 
—

 
306.6

Common trusts (b)
 
 
 
 
 
 
 
473.6

 
 

$493.7

 

$58.3

 

$—

 

$1,025.6