Risk Management And Fair Values (Tables)

3 Months Ended

Mar. 31, 2022

Fair Values Of Derivative Instruments

The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of March 31, 2022 are shown in the table below.  Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Business
		(In Millions)
Derivatives not designated as hedging instruments
Assets:
Natural gas swaps and options	Prepayments and other	$54	$—	$54	Utility
Natural gas swaps and options	Other deferred debits and other assets	$8	$—	$8	Utility
Financial transmission rights	Prepayments and other	$2	($1)	$1	Utility and Entergy Wholesale Commodities

The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2021 are shown in the table below.  

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Business
		(In Millions)
Derivatives not designated as hedging instruments
Assets:
Natural gas swaps and options	Prepayments and other	$6	$—	$6	Utility
Natural gas swaps and options	Other deferred debits and other assets	$5	$—	$5	Utility
Financial transmission rights	Prepayments and other	$4	$—	$4	Utility and Entergy Wholesale Commodities
Liabilities:
Natural gas swaps and options	Other current liabilities	$7	$—	$7	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 $8 million posted as of March 31, 2022 and $8 million posted as of December 31, 2021. Also excludes letters of credit in the amount of $1 million posted as of March 31, 2022.

Derivative Instruments Designated As Cash Flow Hedges On Consolidated Statements Of Income

As discussed above, the Entergy Wholesale Commodities portfolio of derivative instruments expired in April 2021, which was the settlement date for the last financial derivative contracts in the Entergy Wholesale Commodities portfolio. The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended March 31, 2021 were 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)
Electricity swaps and options	$2	Competitive businesses operating revenues	$39

(a)Before taxes of $8 million for the three months ended March 31, 2021

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, 2022 and 2021 were as follows:

Instrument	Income Statement location		Amount of gain (loss) recorded in the income statement
			(In Millions)
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	(a)	$55
Financial transmission rights	Purchased power	(b)	$23
2021
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	(a)	$7
Financial transmission rights	Purchased power	(b)	$128
Electricity swaps and options (c)	Competitive business operating revenues		($2)

(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)There were no gains (losses) recognized in accumulated other comprehensive income from electricity swaps and options prior to the expiration of the Entergy Wholesale Commodities portfolio of derivative instruments in April 2021.

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, 2022 and December 31, 2021.  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.

2022	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$625	$—	$—	$625
Decommissioning trust funds (a):
Equity securities	103	—	—	103
Debt securities (b)	736	1,334	—	2,070
Common trusts (c)				3,040
Securitization recovery trust account	15	—	—	15
Escrow accounts	49	—	—	49
Gas hedge contracts	54	8	—	62
Financial transmission rights	—	—	1	1
	$1,582	$1,342	$1	$5,965

2021	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$398	$—	$—	$398
Decommissioning trust funds (a):
Equity securities	132	—	—	132
Debt securities (b)	770	1,407	—	2,177
Common trusts (c)				3,205
Securitization recovery trust account	29	—	—	29
Escrow accounts	49	—	—	49
Gas hedge contracts	6	5	—	11
Financial transmission rights	—	—	4	4
	$1,384	$1,412	$4	$6,005
Liabilities:
Gas hedge contracts	$7	$—	$—	$7

(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 herein for additional information on the investment portfolios.

(b)The decommissioning trust funds fair value presented herein does not include the recognition pursuant to ASU 2016-13 of a credit loss valuation allowance of $3.2 million as of March 31, 2022 and $0.4 million as

of December 31, 2021 on debt securities. See Note 9 to the financial statements herein for additional information on the allowance for expected credit losses.

(c)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, 2022 and 2021:

	2022	2021
	Financial transmission rights	Power Contracts	Financial transmission rights
	(In Millions)
Balance as of January 1,	$4	$38	$9
Total gains (losses) for the period (a)
Included in earnings	—	(2)	4
Included in other comprehensive income	—	2	—
Included as a regulatory liability/asset	20	—	119
Settlements	(23)	(38)	(128)
Balance as of March 31,	$1	$—	$4

(a)Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period was $0.7 million for the three months ended March 31, 2021.

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, 2022 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)
Assets:
Natural gas swaps and options	Prepayments and other	$19.3	$—	$19.3	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$8.3	$—	$8.3	Entergy Louisiana
Natural gas swaps	Prepayments and other	$35.0	$—	$35.0	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.6	($0.2)	$0.4	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.2	$—	$0.2	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.5	$—	$0.5	Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2021 were as follows:

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant
		(In Millions)
Assets:
Natural gas swaps and options	Prepayments and other	$5.7	$—	$5.7	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$5.3	$—	$5.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$2.3	$—	$2.3	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.6	$—	$0.6	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.8	$—	$0.8	Entergy Texas
Liabilities:
Natural gas swaps	Other current liabilities	$6.7	$—	$6.7	Entergy Mississippi
Natural gas swaps	Other current liabilities	$0.5	$—	$0.5	Entergy New Orleans

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

(c)Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets

(d)As of March 31, 2022, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.4 million for Entergy Mississippi. As of December 31, 2021, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi and $0.1 million for Entergy Texas.

Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income

The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2022 and 2021 were as follows:

Instrument	Income Statement Location	Amount of gain (loss) recorded in the income statement		Registrant
		(In Millions)
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$11.1	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$42.8	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$1.1	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$7.5	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$9.4	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$1.0	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$0.8	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$3.8	(b)	Entergy Texas
2021
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$1.8	(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	($0.1)	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$26.1	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$12.3	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$7.2	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$1.3	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$77.9	(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

2022	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$107.2	$—	$—	$107.2
Decommissioning trust funds (a):
Equity securities	2.7	—	—	2.7
Debt securities	132.4	376.9	—	509.3
Common trusts (b)				848.6
Financial transmission rights	—	—	0.4	0.4
	$242.3	$376.9	$0.4	$1,468.2

2021	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$4.8	$—	$—	$4.8
Decommissioning trust funds (a):
Equity securities	16.7	—	—	16.7
Debt securities	119.5	406.8	—	526.3
Common trusts (b)				895.4
Financial transmission rights	—	—	2.3	2.3
	$141.0	$406.8	$2.3	$1,445.5

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 for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2022.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.3	$0.6	$0.3	$0.1	$0.8
Gains (losses) included as a regulatory liability/asset	5.6	9.1	0.9	0.8	3.5
Settlements	(7.5)	(9.4)	(1.0)	(0.8)	(3.8)
Balance as of March 31,	$0.4	$0.3	$0.2	$0.1	$0.5

The following table sets forth a reconciliation of changes in the net assets for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2021.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.7	$4.2	$0.6	$0.1	$1.6
Gains (losses) included as a regulatory liability/asset	24.8	9.3	6.9	1.2	76.8
Settlements	(26.1)	(12.3)	(7.2)	(1.2)	(77.9)
Balance as of March 31,	$1.4	$1.2	$0.3	$0.1	$0.5

Entergy Louisiana [Member]

Fair Values Of Derivative Instruments

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2022 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)
Assets:
Natural gas swaps and options	Prepayments and other	$19.3	$—	$19.3	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$8.3	$—	$8.3	Entergy Louisiana
Natural gas swaps	Prepayments and other	$35.0	$—	$35.0	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.6	($0.2)	$0.4	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.2	$—	$0.2	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.5	$—	$0.5	Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2021 were as follows:

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant
		(In Millions)
Assets:
Natural gas swaps and options	Prepayments and other	$5.7	$—	$5.7	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$5.3	$—	$5.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$2.3	$—	$2.3	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.6	$—	$0.6	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.8	$—	$0.8	Entergy Texas
Liabilities:
Natural gas swaps	Other current liabilities	$6.7	$—	$6.7	Entergy Mississippi
Natural gas swaps	Other current liabilities	$0.5	$—	$0.5	Entergy New Orleans

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

(c)Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets

(d)As of March 31, 2022, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.4 million for Entergy Mississippi. As of December 31, 2021, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi and $0.1 million for Entergy Texas.

Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income

The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2022 and 2021 were as follows:

Instrument	Income Statement Location	Amount of gain (loss) recorded in the income statement		Registrant
		(In Millions)
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$11.1	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$42.8	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$1.1	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$7.5	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$9.4	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$1.0	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$0.8	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$3.8	(b)	Entergy Texas
2021
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$1.8	(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	($0.1)	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$26.1	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$12.3	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$7.2	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$1.3	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$77.9	(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

2022	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$140.7	$—	$—	$140.7
Decommissioning trust funds (a):
Equity securities	22.8	—	—	22.8
Debt securities	230.0	517.5	—	747.5
Common trusts (b)				1,235.1
Gas hedge contracts	19.3	8.3	—	27.6
Financial transmission rights	—	—	0.3	0.3
	$412.8	$525.8	$0.3	$2,174.0

2021	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$18.4	$—	$—	$18.4
Decommissioning trust funds (a):
Equity securities	20.2	—	—	20.2
Debt securities	262.6	531.6	—	794.2
Common trusts (b)				1,300.1
Gas hedge contracts	5.7	5.3	—	11.0
Financial transmission rights	—	—	0.6	0.6
	$306.9	$536.9	$0.6	$2,144.5

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 for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2022.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.3	$0.6	$0.3	$0.1	$0.8
Gains (losses) included as a regulatory liability/asset	5.6	9.1	0.9	0.8	3.5
Settlements	(7.5)	(9.4)	(1.0)	(0.8)	(3.8)
Balance as of March 31,	$0.4	$0.3	$0.2	$0.1	$0.5

The following table sets forth a reconciliation of changes in the net assets for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2021.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.7	$4.2	$0.6	$0.1	$1.6
Gains (losses) included as a regulatory liability/asset	24.8	9.3	6.9	1.2	76.8
Settlements	(26.1)	(12.3)	(7.2)	(1.2)	(77.9)
Balance as of March 31,	$1.4	$1.2	$0.3	$0.1	$0.5

Entergy Mississippi [Member]

Fair Values Of Derivative Instruments

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2022 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)
Assets:
Natural gas swaps and options	Prepayments and other	$19.3	$—	$19.3	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$8.3	$—	$8.3	Entergy Louisiana
Natural gas swaps	Prepayments and other	$35.0	$—	$35.0	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.6	($0.2)	$0.4	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.2	$—	$0.2	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.5	$—	$0.5	Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2021 were as follows:

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant
		(In Millions)
Assets:
Natural gas swaps and options	Prepayments and other	$5.7	$—	$5.7	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$5.3	$—	$5.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$2.3	$—	$2.3	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.6	$—	$0.6	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.8	$—	$0.8	Entergy Texas
Liabilities:
Natural gas swaps	Other current liabilities	$6.7	$—	$6.7	Entergy Mississippi
Natural gas swaps	Other current liabilities	$0.5	$—	$0.5	Entergy New Orleans

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

(c)Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets

(d)As of March 31, 2022, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.4 million for Entergy Mississippi. As of December 31, 2021, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi and $0.1 million for Entergy Texas.

Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income

The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2022 and 2021 were as follows:

Instrument	Income Statement Location	Amount of gain (loss) recorded in the income statement		Registrant
		(In Millions)
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$11.1	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$42.8	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$1.1	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$7.5	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$9.4	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$1.0	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$0.8	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$3.8	(b)	Entergy Texas
2021
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$1.8	(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	($0.1)	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$26.1	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$12.3	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$7.2	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$1.3	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$77.9	(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

2022	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Escrow accounts	$48.9	$—	$—	$48.9
Gas hedge contracts	35.0	—	—	35.0
Financial transmission rights	—	—	0.2	0.2
	$83.9	$—	$0.2	$84.1

2021	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$47.6	$—	$—	$47.6
Escrow accounts	48.9	—	—	48.9
Financial transmission rights	—	—	0.3	0.3
	$96.5	$—	$0.3	$96.8
Liabilities:
Gas hedge contracts	$6.7	$—	$—	$6.7

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 for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2022.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.3	$0.6	$0.3	$0.1	$0.8
Gains (losses) included as a regulatory liability/asset	5.6	9.1	0.9	0.8	3.5
Settlements	(7.5)	(9.4)	(1.0)	(0.8)	(3.8)
Balance as of March 31,	$0.4	$0.3	$0.2	$0.1	$0.5

The following table sets forth a reconciliation of changes in the net assets for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2021.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.7	$4.2	$0.6	$0.1	$1.6
Gains (losses) included as a regulatory liability/asset	24.8	9.3	6.9	1.2	76.8
Settlements	(26.1)	(12.3)	(7.2)	(1.2)	(77.9)
Balance as of March 31,	$1.4	$1.2	$0.3	$0.1	$0.5

Entergy New Orleans [Member]

Fair Values Of Derivative Instruments

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2022 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)
Assets:
Natural gas swaps and options	Prepayments and other	$19.3	$—	$19.3	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$8.3	$—	$8.3	Entergy Louisiana
Natural gas swaps	Prepayments and other	$35.0	$—	$35.0	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.6	($0.2)	$0.4	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.2	$—	$0.2	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.5	$—	$0.5	Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2021 were as follows:

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant
		(In Millions)
Assets:
Natural gas swaps and options	Prepayments and other	$5.7	$—	$5.7	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$5.3	$—	$5.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$2.3	$—	$2.3	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.6	$—	$0.6	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.8	$—	$0.8	Entergy Texas
Liabilities:
Natural gas swaps	Other current liabilities	$6.7	$—	$6.7	Entergy Mississippi
Natural gas swaps	Other current liabilities	$0.5	$—	$0.5	Entergy New Orleans

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

(c)Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets

(d)As of March 31, 2022, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.4 million for Entergy Mississippi. As of December 31, 2021, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi and $0.1 million for Entergy Texas.

Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income

The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2022 and 2021 were as follows:

Instrument	Income Statement Location	Amount of gain (loss) recorded in the income statement		Registrant
		(In Millions)
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$11.1	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$42.8	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$1.1	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$7.5	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$9.4	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$1.0	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$0.8	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$3.8	(b)	Entergy Texas
2021
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$1.8	(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	($0.1)	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$26.1	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$12.3	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$7.2	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$1.3	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$77.9	(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

2022	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$31.1	$—	$—	$31.1
Securitization recovery trust account	5.1	—	—	5.1
Financial transmission rights	—	—	0.1	0.1
	$36.2	$—	$0.1	$36.3

2021	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$42.8	$—	$—	$42.8
Securitization recovery trust account	2.0	—	—	2.0
Financial transmission rights	—	—	0.1	0.1
	$44.8	$—	$0.1	$44.9
Liabilities:
Gas hedge contracts	$0.5	$—	$—	$0.5

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 for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2022.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.3	$0.6	$0.3	$0.1	$0.8
Gains (losses) included as a regulatory liability/asset	5.6	9.1	0.9	0.8	3.5
Settlements	(7.5)	(9.4)	(1.0)	(0.8)	(3.8)
Balance as of March 31,	$0.4	$0.3	$0.2	$0.1	$0.5

The following table sets forth a reconciliation of changes in the net assets for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2021.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.7	$4.2	$0.6	$0.1	$1.6
Gains (losses) included as a regulatory liability/asset	24.8	9.3	6.9	1.2	76.8
Settlements	(26.1)	(12.3)	(7.2)	(1.2)	(77.9)
Balance as of March 31,	$1.4	$1.2	$0.3	$0.1	$0.5

Entergy Texas [Member]

Fair Values Of Derivative Instruments

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of March 31, 2022 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)
Assets:
Natural gas swaps and options	Prepayments and other	$19.3	$—	$19.3	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$8.3	$—	$8.3	Entergy Louisiana
Natural gas swaps	Prepayments and other	$35.0	$—	$35.0	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.6	($0.2)	$0.4	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.2	$—	$0.2	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.5	$—	$0.5	Entergy Texas

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2021 were as follows:

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant
		(In Millions)
Assets:
Natural gas swaps and options	Prepayments and other	$5.7	$—	$5.7	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$5.3	$—	$5.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$2.3	$—	$2.3	Entergy Arkansas
Financial transmission rights	Prepayments and other	$0.6	$—	$0.6	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Prepayments and other	$0.8	$—	$0.8	Entergy Texas
Liabilities:
Natural gas swaps	Other current liabilities	$6.7	$—	$6.7	Entergy Mississippi
Natural gas swaps	Other current liabilities	$0.5	$—	$0.5	Entergy New Orleans

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

(c)Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets

(d)As of March 31, 2022, letters of credit posted with MISO covered financial transmission rights exposure of $0.3 million for Entergy Arkansas and $0.4 million for Entergy Mississippi. As of December 31, 2021, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi and $0.1 million for Entergy Texas.

Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income

The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended March 31, 2022 and 2021 were as follows:

Instrument	Income Statement Location	Amount of gain (loss) recorded in the income statement		Registrant
		(In Millions)
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$11.1	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$42.8	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$1.1	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$7.5	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$9.4	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$1.0	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$0.8	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$3.8	(b)	Entergy Texas
2021
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$1.8	(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	($0.1)	(a)	Entergy New Orleans
Financial transmission rights	Purchased power	$26.1	(b)	Entergy Arkansas
Financial transmission rights	Purchased power	$12.3	(b)	Entergy Louisiana
Financial transmission rights	Purchased power	$7.2	(b)	Entergy Mississippi
Financial transmission rights	Purchased power	$1.3	(b)	Entergy New Orleans
Financial transmission rights	Purchased power	$77.9	(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

2022	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Securitization recovery trust account	$10.0	$—	$—	$10.0
Financial transmission rights	—	—	0.5	0.5
	$10.0	$—	$0.5	$10.5

2021	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Securitization recovery trust account	$26.6	$—	$—	$26.6
Financial transmission rights	—	—	0.8	0.8
	$26.6	$—	$0.8	$27.4

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 for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2022.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.3	$0.6	$0.3	$0.1	$0.8
Gains (losses) included as a regulatory liability/asset	5.6	9.1	0.9	0.8	3.5
Settlements	(7.5)	(9.4)	(1.0)	(0.8)	(3.8)
Balance as of March 31,	$0.4	$0.3	$0.2	$0.1	$0.5

The following table sets forth a reconciliation of changes in the net assets for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended March 31, 2021.

	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas
	(In Millions)
Balance as of January 1,	$2.7	$4.2	$0.6	$0.1	$1.6
Gains (losses) included as a regulatory liability/asset	24.8	9.3	6.9	1.2	76.8
Settlements	(26.1)	(12.3)	(7.2)	(1.2)	(77.9)
Balance as of March 31,	$1.4	$1.2	$0.3	$0.1	$0.5

System Energy [Member]

Assets and liabilities at fair value on a recurring basis

System Energy

2022	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$98.2	$—	$—	$98.2
Decommissioning trust funds (a):
Equity securities	4.9	—	—	4.9
Debt Securities	251.5	248.1	—	499.6
Common trusts (b)				803.7
	$354.6	$248.1	$—	$1,406.4

2021	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$89.1	$—	$—	$89.1
Decommissioning trust funds (a):
Equity securities	12.9	—	—	12.9
Debt securities	273.0	251.5	—	524.5
Common trusts (b)				847.9
	$375.0	$251.5	$—	$1,474.4