Attached files
| file | filename |
|---|---|
| 8-K - ENTERGY CORP /DE/ | a03912.htm |
| EX-99.2 - ENTERGY CORP /DE/ | a03912992.htm |
| EX-99.3 - ENTERGY CORP /DE/ | a03912993.htm |
Exhibit 99.1
 |
For further information:
Paula Waters, VP, Investor Relations
Phone 504/576-4380
pwater1@entergy.com
|
INVESTOR NEWS
July 31, 2012
ENTERGY REPORTS SECOND QUARTER EARNINGS
NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported earnings of $2.06 per share on an as-reported basis and $2.11 per share on an operational basis for second quarter 2012, as shown in Table 1 below. A more detailed discussion of quarterly results begins on page 2 of this release.
|
Table 1: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
|
|||||||||||
|
Second Quarter and Year-to-Date 2012 vs. 2011
|
|||||||||||
|
(Per share in U.S. $)
|
|||||||||||
|
Second Quarter
|
Year-to-Date
|
||||||||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
||||||
|
As-Reported Earnings
|
2.06
|
1.76
|
0.30
|
1.20
|
3.14
|
(1.94)
|
|||||
|
Less Special Items
|
(0.05)
|
-
|
(0.05)
|
(1.36)
|
-
|
(1.36)
|
|||||
|
Operational Earnings
|
2.11
|
1.76
|
0.35
|
2.56
|
3.14
|
(0.58)
|
|||||
|
Weather Impact
|
0.08
|
0.18
|
(0.10)
|
(0.09)
|
0.28
|
(0.37)
|
|||||
Operational Earnings Highlights for Second Quarter 2012
|
·
|
Utility earnings were higher due largely to an Internal Revenue Service agreement that resulted in a significant decrease in income tax expense, which was partially offset by a regulatory charge to reflect that benefits resulting from the agreement will be shared with customers.
|
|
·
|
Entergy Wholesale Commodities earnings increased due primarily to lower decommissioning expense and a lower effective income tax rate, partially offset by decreased operational adjusted EBITDA.
|
|
·
|
Parent & Other results declined due primarily to higher income tax expense on Parent & Other activities.
|
“In May, we received the long-awaited approval for the renewal of Pilgrim Nuclear Power Station’s operating license,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer. “The Nuclear Regulatory Commission’s approval followed a 76-month review, the longest on record, and concluded that there is no safety or environmental issue that precludes the plant from operating safely for another 20 years. We have now received 20-year license renewals for all of Entergy Wholesale Commodities nuclear plants with the exception of the Indian Point units in New York where the approval process could last well into the renewal period. Under the federal statutory provision for timely renewal, Indian Point’s ability to continue operations will not be affected.
“The Utility also continues to make progress on key initiatives. The Louisiana Public Service Commission found that joining the Midwest Independent Transmission System Operator regional transmission organization is in the public interest, subject to certain conditions. Regulatory processes related to MISO filings are ongoing in other jurisdictions and we expect decisions from all retail regulators in 2012. In parallel with the regulatory process, MISO implementation efforts also continue, moving us closer to realizing significant savings for our customers.”
Entergy’s business highlights also include the following:
|
·
|
Grand Gulf Nuclear Station completed installation of an approximate 178-megawatt uprate, which was approved by the Nuclear Regulatory Commission.
|
|
·
|
The U.S. Court of Appeals for the DC Circuit issued a decision denying the Vermont Department of Public Service and New England Coalition appeal of the NRC’s issuance of the Vermont Yankee 20-year license renewal.
|
|
·
|
GovernanceMetrics International released its latest global ratings, and Entergy once again received a perfect score of 10.0. The score was supported by Entergy’s governance profile with a predominantly independent Board, detailed governance disclosure and comprehensive disclosures on issues such as environmental and workplace safety policies.
|
A teleconference will be held at 10 a.m. CT on Tuesday, July 31, 2012, to discuss Entergy’s second quarter 2012 earnings announcement, and may be accessed by dialing (719) 457-2080, confirmation code 8666645, no more than 15 minutes prior to the start of the call. The call and presentation slides can also be accessed via Entergy’s website at www.entergy.com. A replay of the teleconference will be available by telephone and on Entergy’s website at www.entergy.com as soon as practical after the transcript is filed with the U.S. Securities and Exchange Commission due to filing requirements associated with the proposed spin-off and merger of Entergy’s transmission business with ITC Holdings Corp. The telephone replay will be available through Aug. 7, 2012, by dialing (719) 457-0820, confirmation code 8666645.
|
I.
|
Consolidated Results
|
Consolidated Earnings
Table 2 provides a comparative summary of consolidated earnings per share for second quarter and year-to-date 2012 versus 2011, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. Second quarter 2012 earnings increased compared to a year ago. A detailed discussion of the factors driving quarter results at each business segment follows.
|
Table 2: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
Second Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||
|
(Per share in U.S. $)
|
||||||
|
Second Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
As-Reported
|
||||||
|
Utility
|
1.72
|
1.39
|
0.33
|
2.07
|
2.30
|
(0.23)
|
|
Entergy Wholesale Commodities
|
0.46
|
0.36
|
0.10
|
(0.49)
|
1.04
|
(1.53)
|
|
Parent & Other
|
(0.12)
|
0.01
|
(0.13)
|
(0.38)
|
(0.20)
|
(0.18)
|
|
Consolidated As-Reported Earnings
|
2.06
|
1.76
|
0.30
|
1.20
|
3.14
|
(1.94)
|
|
Less Special Items
|
||||||
|
Utility
|
(0.05)
|
-
|
(0.05)
|
(0.09)
|
-
|
(0.09)
|
|
Entergy Wholesale Commodities
|
-
|
-
|
-
|
(1.26)
|
-
|
(1.26)
|
|
Parent & Other
|
-
|
-
|
-
|
(0.01)
|
-
|
(0.01)
|
|
Consolidated Special Items
|
(0.05)
|
-
|
(0.05)
|
(1.36)
|
-
|
(1.36)
|
|
Operational
|
||||||
|
Utility
|
1.77
|
1.39
|
0.38
|
2.16
|
2.30
|
(0.14)
|
|
Entergy Wholesale Commodities
|
0.46
|
0.36
|
0.10
|
0.77
|
1.04
|
(0.27)
|
|
Parent & Other
|
(0.12)
|
0.01
|
(0.13)
|
(0.37)
|
(0.20)
|
(0.17)
|
|
Consolidated Operational Earnings
|
2.11
|
1.76
|
0.35
|
2.56
|
3.14
|
(0.58)
|
|
Weather Impact
|
0.08
|
0.18
|
(0.10)
|
(0.09)
|
0.28
|
(0.37)
|
Detailed earnings variance analysis is included in Appendix B-1 and Appendix B-2 to this release. In addition, Appendix B-3 provides details of special items shown in Table 2 above.
Consolidated Net Cash Flow Provided by Operating Activities
Entergy’s net cash flow provided by operating activities in second quarter 2012 was $587 million compared to $654 million in second quarter 2011. The overall quarterly decrease was due primarily to:
|
·
|
Decrease in Entergy Wholesale Commodities net revenue, and
|
|
·
|
Regulatory refund to a wholesale customer associated with rough production cost equalization.
|
Table 3 provides the components of net cash flow provided by operating activities contributed by each business with current quarter and year-to-date comparisons.
|
Table 3: Consolidated Net Cash Flow Provided by Operating Activities
|
||||||
|
Second Quarter and Year-to-Date 2012 vs. 2011
|
||||||
|
(U.S. $ in millions)
|
||||||
|
Second Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
Utility
|
493
|
507
|
(14)
|
976
|
640
|
336
|
|
Entergy Wholesale Commodities
|
124
|
173
|
(49)
|
293
|
381
|
(88)
|
|
Parent & Other
|
(30)
|
(26)
|
(4)
|
(81)
|
(44)
|
(37)
|
|
Total Net Cash Flow Provided by Operating Activities
|
587
|
654
|
(67)
|
1,188
|
977
|
211
|
|
II.
|
Utility
|
In second quarter 2012, Utility earnings were $1.72 per share on an as-reported basis and $1.77 per share on an operational basis, compared to as-reported and operational earnings per share of $1.39 in second quarter 2011. Utility earnings in the current quarter reflect a significant decrease in income tax expense which resulted from a June 2012 agreement with the IRS regarding the tax treatment for storm cost financings in Louisiana associated with hurricanes Katrina and Rita. The companies affected were Entergy Louisiana, LLC and Entergy Gulf States Louisiana, L.L.C. Under the terms of an agreement approved by the LPSC, the benefits resulting from the IRS agreement will be shared with customers of the two affected operating companies. As a result, the decrease in income tax expense was partially offset by a decrease in net revenue attributable to the regulatory charge recorded to reflect this customer sharing.
Excluding this regulatory charge, Utility net revenue improved modestly. Retail sales volume in second quarter 2012 was higher than a year ago, reflecting strong weather-adjusted sales growth across all customer classes. Weather was warmer-than-normal, but the quarter-over-quarter weather effect variance was unfavorable when compared to the well above-normal temperatures experienced in the second quarter of 2011. Higher non-fuel operation and maintenance expense served as a partial offset to the increased operational earnings. Non-fuel operation and maintenance expense increased due primarily to higher compensation and benefits costs (largely pension) as well as higher fossil-related outage and distribution expenses. These increases in non-fuel operation and maintenance expense were partially offset by the deferral of previously incurred MISO implementation costs as approved by the Federal Energy Regulatory Commission and the LPSC.
Retail electric sales, in billed gigawatt-hours, is summarized in Table 4 by customer segment. Current quarter sales reflect the following:
|
·
|
Residential sales in second quarter 2012, on a weather-adjusted basis, increased 5.8 percent compared to second quarter 2011.
|
|
·
|
Commercial and governmental sales, on a weather-adjusted basis, increased 4.2 percent quarter over quarter.
|
|
·
|
Industrial sales in the second quarter increased 2.6 percent compared to the same quarter of 2011.
|
Retail sales growth on a weather-adjusted basis was 4.0 percent for the quarter. Residential growth was strongest. Industrial sales growth was also positive, particularly in Louisiana, due largely to expansions. For large industrials, chemicals continued to be the strongest sector, partially offset by a decline in refineries. Growth in the small- to mid-sized segment was also positive.
Table 4 provides a comparative summary of Utility operational performance measures.
|
Table 4: Utility Operational Performance Measures
|
||||||||
|
Second Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of measures)
|
||||||||
|
Second Quarter
|
Year-to-Date
|
|||||||
|
2012
|
2011
|
% Change
|
% Weather Adjusted
|
2012
|
2011
|
% Change
|
% Weather Adjusted
|
|
|
GWh billed
|
||||||||
|
Residential
|
7,940
|
7,993
|
(0.7)%
|
5.8%
|
15,700
|
17,034
|
(7.8)%
|
4.1%
|
|
Commercial and governmental
|
7,753
|
7,548
|
2.7%
|
4.2%
|
14,745
|
14,580
|
1.1%
|
3.3%
|
|
Industrial
|
10,408
|
10,140
|
2.6%
|
2.6%
|
20,366
|
19,657
|
3.6%
|
3.6%
|
|
Total Retail Sales
|
26,101
|
25,681
|
1.6%
|
4.0%
|
50,811
|
51,271
|
(0.9)%
|
3.7%
|
|
Wholesale
|
836
|
1,036
|
(19.3)%
|
1,568
|
1,983
|
(20.9)%
|
||
|
Total Sales
|
26,937
|
26,717
|
0.8%
|
52,379
|
53,254
|
(1.6)%
|
||
|
O&M expense per MWh (a)
|
$19.94
|
$19.09
|
4.5%
|
$20.01
|
$18.49
|
8.2%
|
||
|
Number of retail customers
|
||||||||
|
Residential
|
2,383,057
|
2,368,321
|
0.6%
|
|||||
|
Commercial and governmental
|
356,324
|
353,662
|
0.8%
|
|||||
|
Industrial
|
46,771
|
44,476
|
5.2%
|
|||||
|
(a)
|
Second quarter and year-to-date 2012 exclude the effect of the special item associated with the proposed spin-merge of the transmission business.
|
Appendix C provides information on selected pending local and federal regulatory cases.
|
III.
|
Entergy Wholesale Commodities
|
Entergy Wholesale Commodities operational adjusted EBITDA was $127 million in the second quarter of 2012, compared to $174 million in the same period a year ago, as shown in Table 5. The decline was due largely to lower net revenue from the nuclear portfolio on lower energy pricing and lower production. The average realized revenue per megawatt hour for the nuclear fleet was approximately $49, down from approximately $52 in the same period last year. Nuclear generation declined due primarily to an increase in refueling and unplanned outage days. The effect of outage days was offset by the exercise of resupply options provided for in power purchase agreements whereby EWC may elect to supply power from another source when the plant is not running. Lower net revenue from EWC’s nuclear fleet was partially offset by net revenue from the 583-megawatt Rhode Island State Energy Center, which was acquired in December 2011. Higher non-fuel operation and maintenance expense also contributed to the operational adjusted EBITDA decline driven by higher compensation and benefits costs (largely pension) and the RISEC acquisition.
|
Table 5: Entergy Wholesale Commodities Operational Adjusted EBITDA – Reconciliation of GAAP to Non-GAAP Measures
|
||||||
|
Second Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of measures)
|
||||||
|
($ in millions)
|
||||||
|
Second Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
Net income
|
81
|
66
|
15
|
(87)
|
189
|
(276)
|
|
Add back: interest expense
|
6
|
5
|
1
|
13
|
9
|
4
|
|
Add back: income tax expense
|
46
|
64
|
(18)
|
(44)
|
149
|
(193)
|
|
Add back: depreciation and amortization
|
48
|
44
|
4
|
99
|
87
|
12
|
|
Subtract: interest and investment income
|
37
|
33
|
4
|
78
|
64
|
14
|
|
Add back: decommissioning expense
|
(17)
|
28
|
(45)
|
13
|
57
|
(44)
|
|
Adjusted EBITDA
|
127
|
174
|
(47)
|
(84)
|
427
|
(511)
|
|
Add back: special item for asset impairment
|
-
|
-
|
-
|
356
|
-
|
356
|
|
Operational adjusted EBITDA
|
127
|
174
|
(47)
|
272
|
427
|
(155)
|
Table 6 provides a comparative summary of Entergy Wholesale Commodities operational performance measures.
|
Table 6: Entergy Wholesale Commodities Operational Performance Measures
|
||||||
|
Second Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of measures)
|
||||||
|
Second Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
|
|
Owned capacity
|
6,612
|
6,016
|
9.9%
|
6,612
|
6,016
|
9.9%
|
|
GWh billed
|
11,674
|
10,567
|
10.5%
|
22,955
|
21,121
|
8.7%
|
|
Average realized revenue per MWh
|
$48.27
|
$52.74
|
(8.5)%
|
$48.77
|
$54.77
|
(11.0)%
|
|
Non-fuel O&M expense / purchased power per MWh (b)
|
$27.99
|
$27.08
|
3.4%
|
$26.60
|
$25.97
|
2.4%
|
|
EWC Nuclear Fleet
|
||||||
|
Capacity factor
|
85%
|
91%
|
(6.6)%
|
87%
|
91%
|
(4.4)%
|
|
GWh billed
|
10,426
|
9,993
|
4.3%
|
20,264
|
19,906
|
1.8%
|
|
Average realized revenue per MWh
|
$48.67
|
$52.38
|
(7.1)%
|
$49.47
|
$54.91
|
(9.9)%
|
|
Production cost per MWh
|
$26.61
|
$25.96
|
2.5%
|
$26.22
|
$24.99
|
4.9%
|
|
Refueling outage days:
|
||||||
|
Indian Point 2
|
1
|
-
|
28
|
-
|
||
|
Indian Point 3
|
-
|
7
|
-
|
30
|
||
|
Palisades
|
34
|
-
|
34
|
-
|
||
|
Pilgrim
|
-
|
25
|
-
|
25
|
||
|
(b)
|
Year-to-date 2012 excludes the effect of the special item for impairment of the Vermont Yankee assets.
|
Entergy Wholesale Commodities second quarter 2012 results reflect earnings of $0.46 per share on an as-reported basis and an operational basis, compared to $0.36 per share in second quarter 2011. The primary drivers for the increase were lower decommissioning expense and a lower effective income tax rate. In the current quarter, a reduction in the decommissioning liability was recorded, also reducing decommissioning expense, which factored in, among other things, an updated decommissioning cost study for the Pilgrim nuclear plant. The lower effective income tax rate was due largely to the absence of a charge in the prior year which resulted from a change in Michigan tax law. Decreased net revenue and increased non-fuel operation and maintenance expense (discussed above) partially offset these benefits.
Table 7 provides current capacity and generation sold forward projections for Entergy Wholesale Commodities’ fleet.
|
Table 7: Entergy Wholesale Commodities Capacity and Generation Projected Sold Forward
|
|||||
|
Third Quarter 2012 through 2016 (see Appendix F for definitions of measures)
|
|||||
|
Balance of 2012
|
2013
|
2014
|
2015
|
2016
|
|
|
Entergy Wholesale Commodities Nuclear Portfolio
|
|||||
|
Energy
|
|||||
|
Planned TWh of generation (c)
|
21
|
40
|
41
|
41
|
40
|
|
Percent of planned generation sold forward
|
|||||
|
Unit-contingent
|
61%
|
41%
|
22%
|
12%
|
12%
|
|
Unit-contingent with availability guarantees
|
18%
|
19%
|
15%
|
13%
|
13%
|
|
Firm LD
|
24%
|
24%
|
28%
|
-%
|
-%
|
|
Offsetting positions
|
(13)%
|
-%
|
(6)%
|
-%
|
-%
|
|
Total
|
90%
|
84%
|
59%
|
25%
|
25%
|
|
Average revenue under contract per MWh (d)
|
$49
|
$45 - 50
|
$46 – 49
|
$49 - 57
|
$50 - 59
|
|
Capacity
|
|||||
|
Planned net MW in operation (c)
|
5,011
|
5,011
|
5,011
|
5,011
|
5,011
|
|
Percent of capacity sold forward
|
|||||
|
Bundled capacity and energy contracts
|
16%
|
16%
|
16%
|
16%
|
16%
|
|
Capacity contracts (e)
|
49%
|
26%
|
13%
|
12%
|
5%
|
|
Total
|
65%
|
42%
|
29%
|
28%
|
21%
|
|
Average revenue under contract per kW per month
(applies to capacity contracts only) (e)
|
$2.3
|
$2.4
|
$3.0
|
$3.3
|
$3.4
|
|
Blended Capacity and Energy Recap (based on revenues)
|
|||||
|
Percent of planned generation and capacity sold forward (e)
|
91%
|
83%
|
63%
|
29%
|
28%
|
|
Average revenue under contract per MWh (d) (e)
|
$51
|
$46
|
$47
|
$51
|
$51
|
|
Entergy Wholesale Commodities Non-Nuclear Portfolio
|
|||||
|
Energy
|
|||||
|
Planned TWh of generation (f)
|
3
|
7
|
7
|
6
|
6
|
|
Percent of planned generation sold forward
|
|||||
|
Cost-based contracts
|
38%
|
34%
|
30%
|
33%
|
31%
|
|
Firm LD
|
5%
|
5%
|
5%
|
6%
|
6%
|
|
Total
|
43%
|
39%
|
35%
|
39%
|
37%
|
|
Capacity
|
|||||
|
Planned net MW in operation (f)
|
1,052
|
1,052
|
1,052
|
1,052
|
1,052
|
|
Percent of capacity sold forward
|
|||||
|
Cost-based contracts
|
35%
|
29%
|
24%
|
24%
|
24%
|
|
Bundled capacity and energy contracts
|
8%
|
8%
|
8%
|
8%
|
8%
|
|
Capacity contracts
|
52%
|
47%
|
47%
|
48%
|
20%
|
|
Total
|
95%
|
84%
|
79%
|
80%
|
52%
|
|
Non-Nuclear Net Revenue
|
|||||
|
Expected non-nuclear portfolio net revenue ($ millions) (g)
|
$44
|
$79
|
$76
|
$75
|
$82
|
|
(c)
|
Assumes successful license renewal and uninterrupted normal operation at all plants, including Vermont Yankee. NRC license renewal applications are in process for both Indian Point units; current license expirations are 9/28/13 for Indian Point 2 and 12/12/15 for Indian Point 3.
|
|
(d)
|
Average revenue under contract may fluctuate due to factors including positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs. Also, average revenue under contract excludes payments owed under the value sharing agreement with the New York Power Authority.
|
|
(e)
|
Reflects updated capacity sold forward that removes Vermont Yankee’s earlier allocations for the delivery periods from June 2013 through May 2015. In the second quarter of 2012, ISO New England accepted Vermont Yankee’s bid to delist for the June 2015 through May 2016 forward capacity auction #6 and retroactively for the June 2013 through May 2014 FCA #4; ISO-NE has until May 2013 to consider the delist bid for FCA #5.
|
|
(f)
|
Non-nuclear planned generation and net MW in operation include purchases from affiliated and non-affiliated counterparties under long-term contracts and exclude energy and capacity from Entergy Wholesale Commodities’ wind investment accounted for under the equity method of accounting and Ritchie.
|
|
(g)
|
Non-nuclear net revenue estimated as of 6/30/12 and may fluctuate due to factors including commodity prices, costs in cost-based energy and capacity contracts and other risk management costs.
|
|
IV.
|
Parent & Other
|
The Parent & Other disclosure segment reported a loss of $(0.12) per share on an as-reported basis and an operational basis in second quarter 2012, compared to as-reported and operational earnings of $0.01 per share in second quarter 2011. Higher income tax expense on Parent & Other activities was the primary factor driving the decrease. Both periods reflected favorable tax items. Second quarter 2012 benefited from a favorable decision received in June 2012 from the U.S. Court of Appeals for the Fifth Circuit affirming Entergy’s entitlement to claim foreign tax credits for the U.K. Windfall Tax. The second quarter of 2011 benefited from a reversal of a tax reserve related to an IRS settlement, which exceeded income tax adjustments recorded in the current period.
|
V.
|
2012 Earnings Guidance
|
Entergy updated its 2012 earnings guidance range to be $3.49 to $4.29 per share on an as-reported basis and affirmed operational guidance of $4.85 to $5.65 per share.
The revised as-reported guidance range reflects special items recorded in the current quarter for expenses in connection with the proposed spin-merge of Entergy’s transmission business with ITC. As-reported earnings guidance for 2012 does not reflect any potential future expenses for the proposed spin-merge; as-reported 2012 guidance will be updated throughout the year as these transaction-related expenses are incurred.
The 2012 earnings guidance is detailed in Table 8. Year-over-year changes are shown as point estimates and are applied to 2011 earnings to compute the 2012 guidance midpoint. Drivers for the 2012 guidance range are listed separately. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the guidance midpoint to produce Entergy’s guidance range.
|
Table 8: 2012 Earnings Per Share Guidance – As-Reported and Operational
|
||||||
|
(Per share in U.S. $) – Operational last updated April 2012, As-Reported last updated July 2012 (h)
|
||||||
|
Segment
|
Description of Drivers
|
2011 Earnings per Share
|
Expected Change
|
2012
Guidance
Midpoint
|
2012
Guidance Range
|
|
|
Utility
|
2011 Operational Earnings per Share
|
6.20
|
||||
|
Adjustment to normalize weather
|
(0.52)
|
|||||
|
Increased net revenue due to absence of sharing 2011 tax benefit with Entergy Louisiana customers
|
1.11
|
|||||
|
Increased net revenue due to sales growth and rate actions
|
0.85
|
|||||
|
Increased non-fuel operation and maintenance expense
|
(0.05)
|
|||||
|
Increased other operating expenses
|
(0.10)
|
|||||
|
Increased depreciation expense
|
(0.20)
|
|||||
|
Increased interest and other charges
|
(0.10)
|
|||||
|
Higher effective income tax rate
|
(2.49)
|
|||||
|
Other
|
0.10
|
|||||
|
Subtotal
|
6.20
|
(1.40)
|
4.80
|
|||
|
Entergy Wholesale Commodities
|
2011 Operational Earnings per Share
|
2.74
|
||||
|
Decreased net revenue from nuclear assets due primarily to lower pricing
|
(0.60)
|
|||||
|
Increased non-fuel operation and maintenance expense for nuclear operations
|
(0.05)
|
|||||
|
Increased other operating expenses for nuclear operations
|
(0.05)
|
|||||
|
Decommissioning liability reduction in 2011
|
(0.12)
|
|||||
|
Increased depreciation expense on nuclear assets
|
(0.05)
|
|||||
|
Increased after-tax operating income for EWC non-nuclear operations, including RISEC acquisition
|
0.10
|
|||||
|
Increased interest and dividend income
|
0.05
|
|||||
|
Higher effective income tax rate
|
(0.17)
|
|||||
|
Other
|
(0.05)
|
|||||
|
Subtotal
|
2.74
|
(0.94)
|
1.80
|
|||
|
Parent & Other
|
2011 Operational Earnings per Share
|
(1.32)
|
||||
|
Increased Parent non-fuel operation and maintenance expense
|
(0.05)
|
|||||
|
Increased Parent interest expense
|
(0.15)
|
|||||
|
Lower income tax expense
|
0.74
|
|||||
|
Other
|
(0.02)
|
|||||
|
Subtotal
|
(1.32)
|
0.52
|
(0.80)
|
|||
|
Consolidated Operational
|
2012 Operational Earnings per Share Guidance Range
|
7.62
|
(1.82)
|
5.80
|
5.40 – 6.20
|
|
|
Decreased net revenue due to first quarter 2012 weather impact
|
(0.18)
|
|||||
|
Increased income tax expense resulting from write-off of regulatory asset
|
(0.26)
|
|||||
|
Increased non-fuel operation and maintenance expense due to final pension assumptions
|
(0.24)
|
|||||
|
Reduced operating expenses due to Vermont Yankee asset impairment
|
0.14
|
|||||
|
Decreased net revenue on EWC’s nuclear open position largely driven by lower energy prices as of March 31, 2012
|
(0.23)
|
|||||
|
Other
|
0.22
|
|||||
|
Revised 2012 Operational Earnings per Share Guidance
Range
|
7.62
|
(2.37)
|
5.25
|
4.85 – 5.65
|
||
|
Consolidated As-Reported
|
2011 As-Reported Earnings per Share
|
7.55
|
||||
|
Changes detailed above
|
(2.37)
|
|||||
|
2011 special items for expenses associated with proposed spin-merge of Entergy’s transmission business
|
0.07
|
|||||
|
Asset impairment on Vermont Yankee nuclear power plant
|
(1.26)
|
|||||
|
Year-to-date 2012 special item for expenses associated with proposed spin-merge of Entergy’s transmission business
|
(0.10)
|
|||||
|
2012 As-Reported Earnings per Share Guidance Range (i)
|
7.55
|
(3.66)
|
3.89
|
3.49 – 4.29
|
||
|
(h)
|
Originally prepared November 2011, updated January 2012 to reflect 2011 final results, revised April 2012 and updated on as-reported basis July 2012.
|
|
(i)
|
As-reported earnings guidance will be updated to reflect special items as recorded throughout 2012.
|
Key assumptions supporting 2012 operational earnings guidance are as follows:
Utility
|
·
|
Normal weather
|
|
·
|
Retail sales growth of around 1.6 percent on a weather-adjusted basis, including the effects of industrial expansion and cogen loss
|
|
·
|
Increased net revenue from rate actions
|
|
·
|
Increased net revenue due to the absence of the third quarter 2011 regulatory charge to reflect an agreement to share a portion of the benefits with Entergy Louisiana customers that resulted from an Internal Revenue Service tax settlement
|
|
·
|
Increased non-fuel operation and maintenance expense due to plant acquisitions and general expense increases, including lower expense associated with employee stock options, which is offset in Parent & Other
|
|
·
|
Increased depreciation expense associated with capital spending at the Utility
|
|
·
|
Increased other operating expense due primarily to higher taxes other than income taxes, resulting largely from new plant acquisitions as well as expiration of property tax exemptions
|
|
·
|
Increased interest expense due to higher debt outstanding
|
|
·
|
Higher effective income tax rate in 2012, due largely to the absence of the August 2011 IRS settlement, a portion of which was partially offset in net revenue as noted above
|
|
·
|
Other primarily driven by the effect of 2011 share repurchases
|
Entergy Wholesale Commodities
|
·
|
41 TWh of total output for the non-utility nuclear fleet, reflecting an approximate 93 percent capacity factor, including 30-day scheduled refueling outages at Indian Point 2 and Palisades in Spring 2012 and FitzPatrick in Fall 2012
|
|
·
|
Assumes full year operations for Vermont Yankee and Pilgrim
|
|
·
|
89 percent of energy sold under existing contracts at the time 2012 guidance was initiated and 11 percent sold into the spot market for EWC-nuclear fleet
|
|
·
|
$49/MWh average energy contract price and $46/MWh average unsold energy price based on published market prices at the end of September 2011 for EWC-nuclear fleet
|
|
·
|
50 percent of capacity sold under existing contracts (including 32 percent sold as capacity contracts and 18 percent sold bundled with energy) for EWC-nuclear fleet at the time 2012 guidance was initiated
|
|
·
|
$2.8/kW-month average sold capacity contract price and $0.5/kW-month average unsold capacity price based on published market prices at the end of September 2011 for EWC-nuclear fleet
|
|
·
|
Palisades PPA revenue amortization of $17 million in 2012, down from $43 million in 2011
|
|
·
|
Increased nuclear fuel expense reflected in net revenue
|
|
·
|
Non-fuel operation and maintenance expense for nuclear operations, including refueling outage expense and purchased power, around $25.5/MWh reflecting general expense increases
|
|
·
|
Absence of reduction in the asset retirement obligation resulting from an updated Vermont Yankee decommissioning cost study, which reduced decommissioning expense, completed in the fourth quarter 2011
|
|
·
|
Increased other operating expense due to higher decommissioning expense (excluding the fourth quarter 2011 adjustment noted above) and higher taxes other than income taxes for nuclear operations
|
|
·
|
Increased depreciation expense on nuclear assets due to higher depreciable plant balances as well as declining useful life of nuclear assets
|
|
·
|
Improved year-over-year operating income for the balance of EWC’s business, including the assumed RISEC acquisition by year-end 2011 and market prices at the end of September 2011 (2012 guidance range revised in April 2012 considers market prices as of March 2012)
|
|
·
|
Higher effective income tax rate in 2012
|
Parent & Other
|
·
|
Increased Parent non-fuel operation and maintenance expense due primarily to the offset of lower intercompany employee stock option expense at Utility
|
|
·
|
Higher Parent interest expense due to the refinancing of low-cost debt (at the time 2012 guidance was initiated, the existing credit facility was set to expire in August 2012)
|
|
·
|
Lower income tax expense in 2012
|
Share Repurchase Program
|
·
|
2012 average fully diluted shares outstanding of approximately 177 million; does not assume any repurchases under the $500 million share repurchase authority, $350 million of which remained as of December 31, 2011
|
Other
|
·
|
Overall effective income tax rate of 34 percent in 2012
|
|
·
|
Pension discount rate of 5.6 percent (the final average pension discount rate is 5.1 percent)
|
2012 Guidance Range Revised April 2012
|
·
|
Unfavorable weather effect through first quarter 2012
|
|
·
|
First quarter 2012 write-off of a regulatory asset associated with income taxes
|
|
·
|
Lower-than-planned pension discount rate and other updated pension assumptions
|
|
·
|
Reduced expenses (fuel, refueling outage amortization, depreciation) for Vermont Yankee resulting from the asset impairment recorded in the first quarter of 2012
|
|
·
|
$30/MWh average EWC unsold nuclear energy price based on year-to-date and balance of the year market prices as of the end of the March 2012; average energy price for unsold volume based on prices as of the end of June 2012 is around the lower $30/MWh range
|
|
·
|
$1.15/kW-month average EWC unsold nuclear capacity price based on year-to-date and balance of the year market prices as of the end of March 2012; average capacity price for unsold volume based on prices as of the end of June 2012 is approximately $1.2/kW-month
|
|
·
|
Other includes reductions in non-fuel operation and maintenance expense, lower-than-planned interest expense based on financings completed to date and potential income tax benefits incremental to the original plan
|
Earnings guidance for 2012 should be considered in association with earnings sensitivities as shown in Table 9. These sensitivities illustrate the estimated change in operational earnings resulting from changes in various revenue and expense drivers. Traditionally, the most significant variables for earnings drivers are retail sales for Utility and energy prices for Entergy Wholesale Commodities. In addition, the broader earnings guidance range for 2012 takes into consideration a number of regulatory initiatives (rate actions) underway across the Utility jurisdictions.
Estimated annual impacts shown in Table 9 are intended to be indicative rather than precise guidance.
|
Table 9: 2012 Earnings Sensitivities
|
|||
|
(Per share in U.S. $) – Updated April 2012
|
|||
|
Variable
|
2012 Guidance Assumption
|
Description of Change
|
Estimated
Annual Impact (j)
|
|
Utility
|
|||
|
Sales growth
Residential
Commercial / Governmental
Industrial
|
Around 1.6% total sales growth on a weather adjusted basis
|
1% change in Residential MWh sold
1% change in Comm / Govt MWh sold
1% change in Industrial MWh sold
|
- / + 0.05
- / + 0.04
- / + 0.02
|
|
Rate base
|
Growing rate base
|
$100 million change in rate base
|
- / + 0.03
|
|
Return on equity
|
Authorized regulatory ROEs
|
1% change in allowed ROE
|
- / + 0.37
|
|
Entergy Wholesale Commodities (k)
|
|||
|
Capacity factor
|
93% capacity factor
|
1% change in capacity factor
|
- / + 0.06
|
|
Energy revenues
|
89% energy sold at $49/MWh in 2012;
11% unsold at $30/MWh in 2012
|
$10/MWh market price change
|
- / + 0.10
|
|
Non-fuel operation and maintenance expense (l)
|
$25.5/MWh non-fuel operation and maintenance expense/purchased power
|
$1/MWh change
|
+ / - 0.14
|
|
Outage (lost revenue only)
|
93% capacity factor, including refueling outages for three non-utility nuclear units
|
1,000 MW plant for 10 days at average portfolio energy price of $49/MWh for sold and $30/MWh for unsold volumes in 2012
|
- 0.03 / n/a
|
|
(j)
|
Based on 2011 average fully diluted shares outstanding of approximately 178 million.
|
|
(k)
|
Based on Entergy Wholesale Commodities’ nuclear portfolio. Assumes successful license renewal and uninterrupted normal operation at all plants.
|
|
(l)
|
Excludes the effect of the special item for impairment of the Vermont Yankee plant recorded in first quarter 2012.
|
|
VI.
|
Long-term Financial Outlook
|
Entergy believes it offers a long-term, competitive utility investment opportunity combined with a valuable option represented by a unique, clean, non-utility generation business located in attractive power markets. Table 10 summarizes the current long-term financial outlook for 2010 through 2014, which does not reflect the effects of the proposed spin-merge of the transmission business discussed in Appendix A.
|
Table 10: Long-term Financial Outlook (see Appendix F for definitions of certain measures)
|
||
|
Prepared November 2011
|
||
|
Category
|
Long-term Outlook
|
Assumption
|
|
Earnings
|
Utility net income
|
6 to 8 percent compound annual net income growth rate over the 2010 – 2014 horizon (2009 base year).
|
|
Entergy Wholesale Commodities results
|
Revenue projections through 2014 will experience increased volatility due to commodity market activities – one of the most important fundamental drivers for this business. At current sold and forward prices with its existing asset portfolio and in-the-money hedges that will roll off in the coming few years, EWC is expected to deliver declining adjusted EBITDA for the period through 2014 compared to 2010. However, Entergy Wholesale Commodities offers a valuable long-term option from the potential positive effects of economic growth (driving increased load, market heat rates, capacity prices and natural gas prices), aging and unprofitable unit retirements (driving market heat rate expansion and capacity price increases), rationalization of supply and growth of demand in natural gas markets, new environmental legislation and/or enforcement of additional environmental regulations.
|
|
|
Corporate results
|
Results will vary depending upon factors including future effective income tax and interest rates and the amount / timing of share repurchases.
|
|
|
Capital Deployment
|
A balanced capital investment / return program
|
Entergy continues to see value-added investment opportunities at the Utility in the coming years, as well as an investment outlook at Entergy Wholesale Commodities that supports continued safe, secure and reliable operations and opportunistic investments. Entergy aspires to fund this capital program without issuing traditional common equity, while maintaining a competitive capital return program. Given the company’s financial profile with a mix of utility and non-utility businesses, return of capital is expected to be provided similar to the past through a combination of common stock dividends and share repurchases. Absent other attractive investment opportunities, capital deployment through dividends and share repurchases could total as much as $4 – $5 billion from 2010 – 2014 under the current long-term business outlook. The amount of share repurchases may vary as a result of material changes in business results, capital spending or new investment opportunities.
|
|
Credit Quality
|
Strong liquidity.
|
|
|
Solid credit metrics that support ready access to capital on reasonable terms.
|
||
The long-term financial outlook should be considered in association with 2014 financial sensitivities as shown in Table 11. These sensitivities illustrate the estimated change in earnings or adjusted EBITDA resulting from changes in business drivers. Estimated impacts shown in Table 11 are intended to be illustrative.
|
Table 11: 2014 Financial Sensitivities – Illustrative
|
|||
|
Long-term Outlook
|
Assumption
|
Drivers
|
Estimated
Annual Impact
|
|
Utility
|
(Per share in U.S. $) (m)
|
||
|
Earnings growth
|
6 – 8% compound annual net income growth rate from 2010 through 2014 (2009 base)
|
1% retail sales growth
$100 million/year investment in service
1% change in allowed ROE
1% change in non-fuel operation and maintenance expense
$100 million change in debt
|
- / + 0.14
- / + 0.03
- / + 0.45
+ / - 0.07
+ / - 0.02
|
|
Entergy Wholesale Commodities
|
(Adjusted EBITDA in U.S. $, millions) (n) (o)
|
||
|
Adjusted EBITDA
|
Decline in adjusted EBITDA at current sold and forward power prices compared to 2010, plus option value
|
+0 – 1,500 Btu/kWh heat rate expansion
+$0 – 4/kW-mo capacity price
- / + $0 – 1/MMBtu change in Henry Hub natural gas price
$1/MWh EBITDA expense
|
Up to 125
Up to 170
Down to 200 /
Up to 225
+/- 40
|
|
Corporate
|
(Per share in U.S. $) (m)
|
||
|
Balanced capital investment / return / credit quality
|
1% change in interest rate on $1 billion debt
1% change in overall effective income tax rate
$500 million share repurchase (share accretion effect only)
|
+ / - 0.03
+ / - 0.09
+ 0.20 – 0.25
|
|
|
(m)
|
Based on estimated 2012 average fully diluted shares outstanding of approximately 177 million.
|
|
(n)
|
Based on Entergy Wholesale Commodities’ nuclear portfolio. Assumes successful license renewal and uninterrupted normal operation at all plants.
|
|
(o)
|
Each sensitivity assumes all other factors remain constant; however, market heat rates typically move inverse to natural gas prices and partially offset natural gas price movements. This partial offset is not captured in the sensitivity.
|
|
VII.
|
Appendices
|
Seven appendices are presented in this section as follows:
|
·
|
Appendix A includes information on Entergy’s plan to spin off the Utility transmission business and merge that business with a subsidiary of ITC Holdings Corp.
|
|
·
|
Appendix B includes earnings per share variance analysis and detail on special items that relate to the current quarter and year-to-date results.
|
|
·
|
Appendix C provides information on selected pending local and federal regulatory cases and events.
|
|
·
|
Appendix D provides financial metrics for both current and historical periods. In addition, historical financial and operating performance metrics are included for the trailing eight quarters.
|
|
·
|
Appendix E provides a summary of planned capital expenditures for the next three years.
|
|
·
|
Appendix F provides definitions of the operational performance measures and GAAP and non-GAAP financial measures that are used in this release.
|
|
·
|
Appendix G provides a reconciliation of GAAP to non-GAAP financial measures used in this release.
|
|
A.
|
Spin-Merge of Transmission Business
|
Appendix A provides information on Entergy’s plans to spin off its transmission business and merge that business with a subsidiary of ITC Holdings Corp.
Entergy’s Transmission Business Overview
Entergy’s electric transmission business consists of more than 15,800 miles of interconnected transmission lines at voltages of 69kV and above and associated substations across its utility service territory in the Mid-South. Following the completion of the transaction, ITC will become one of the largest electric transmission companies in the U.S., with over 30,000 miles of transmission lines, spanning from the Great Lakes to the Gulf Coast.
Transaction Overview
In December 2011, Entergy and ITC Boards of Directors approved a definitive agreement under which Entergy will spin off and then merge its electric transmission business with a subsidiary of ITC. Terms of the transaction agreements include:
|
·
|
Entergy will spin off its electric transmission business, or “Transco,” to Entergy’s shareholders in the form of a tax-free spin-off.
|
|
·
|
After the spin-off, the newly formed Transco will merge with a newly formed subsidiary of ITC.
|
|
·
|
Prior to the merger, ITC expects to effectuate a $700 million recapitalization, which will take the form of a one-time special dividend, a share repurchase or a combination thereof.
|
|
·
|
The merger will result in Entergy shareholders receiving 50.1 percent of the shares of pro forma ITC in exchange for their shares of Transco; existing ITC shareholders will own the remaining 49.9 percent of the resulting company.
|
Entergy expects to receive gross cash proceeds of $1.775 billion from indebtedness that will be incurred in connection with the transaction, and this indebtedness will be assumed by ITC at the close of the merger. Entergy expects to utilize most of the cash proceeds to retire debt associated with the transmission business at its utility operating companies and the balance for debt reduction at the parent, Entergy Corporation.
Closing Conditions and Approvals
The transaction is subject to the satisfaction of certain closing conditions. Primary filings and approvals required include Entergy’s retail regulators as well as several federal agencies. ITC shareholders must also approve the transaction.
Upcoming activities in the third quarter will focus largely on regulatory filings with Entergy’s retail jurisdictions as well as FERC. Work on other key approvals is expected to continue or begin in the third quarter of 2012.
Appendix A outlines the primary filings and requirements, with descriptions of each.
|
Appendix A: Primary Filings
|
|||
|
Authority
|
Requirements
|
||
|
Entergy’s Retail Regulators
|
Approval required for:
· Change of control of transmission assets
· Affiliate transaction-related steps in the spin-merge
· Authorization to incur debt in some jurisdictions
|
||
|
Federal Energy Regulatory Commission
|
Approval required for:
· Change of control of transmission assets (203 filing)
· Acceptance of jurisdictional agreements (205 filing)
· Authorization to assume debt / issue securities (204 filings)
· Changes to System Agreement to remove provisions related to transmission planning and equalization
· New ITC rate tariffs to be established for the ITC operating companies (205 filing)
|
||
|
Hart-Scott-Rodino Antitrust Improvements Act
|
· Pre-merger notification to review potential antitrust and competition issues
|
||
|
Internal Revenue Service
|
· Private letter ruling substantially to the effect that certain requirements for the tax-free treatment of the distribution of Transco are met
|
||
|
Nuclear Regulatory Commission
|
· Approval of certain license transfers and amendments as part of the steps to complete the transaction
|
||
|
Securities and Exchange Commission
|
· ITC Form S-4 and Proxy Statement (including audited financial statements and disclosures for the Entergy transmission business)
· Transco Registration Statement
|
||
|
ITC Shareholders
|
Approval required for:
· Merger,
· Issuance of shares to Entergy shareholders, and
· Amendment to ITC charter to increase authorized number of shares
|
||
Expected Close
Completion of the transaction is expected in 2013 subject to the satisfaction of certain closing conditions, including the required approvals and filings discussed above.
Additional Information and Where to Find It
ITC and Transco will file registration statements with the Securities and Exchange Commission (SEC) registering shares of ITC common stock and Transco common units to be issued to Entergy shareholders in connection with the proposed transactions. ITC will also file a proxy statement with the SEC that will be sent to the shareholders of ITC. Entergy shareholders are urged to read the prospectus and/or information statement that will be included in the registration statements and any other relevant documents, because they contain important information about ITC, Transco and the proposed transactions. ITC shareholders are urged to read the proxy statement and any other relevant documents because they contain important information about Transco and the proposed transactions. The proxy statement, prospectus and/or information statement, and other documents relating to the proposed transactions (when they are available) can be obtained free of charge from the SEC’s website at www.sec.gov. The documents, when available, can also be obtained free of charge from Entergy upon written request to Entergy Corporation, Investor Relations, P.O. Box 61000, New Orleans, LA 70161 or by calling Entergy’s Investor Relations information line at 1-888-ENTERGY (368-3749), or from ITC upon written request to ITC Holdings Corp., Investor Relations, 27175 Energy Way, Novi, MI 48377 or by calling 248-946-3000.
|
B.
|
Variance Analysis and Special Items
|
Appendix B-1 and Appendix B-2 provide details of second quarter and year-to-date 2012 vs. 2011 as-reported and operational earnings variance analysis for Utility, Entergy Wholesale Commodities, Parent & Other and Consolidated.
|
Appendix B-1: As-Reported and Operational Earnings Per Share Variance Analysis
|
|||||||||||
|
Second Quarter 2012 vs. 2011
|
|||||||||||
|
(Per share in U.S. $, sorted in consolidated operational column, most to least favorable)
|
|||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
||||||||
|
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
||||
|
2011 earnings
|
1.39
|
1.39
|
0.36
|
0.36
|
0.01
|
0.01
|
1.76
|
1.76
|
|||
|
Income taxes - other
|
1.06
|
1.06
|
(p)
|
0.09
|
0.09
|
(q)
|
(0.08)
|
(0.08)
|
(r)
|
1.07
|
1.07
|
|
Decommissioning expense
|
(0.01)
|
(0.01)
|
0.16
|
0.16
|
(s)
|
-
|
-
|
0.15
|
0.15
|
||
|
Other income (deductions) - other
|
(0.01)
|
(0.01)
|
0.02
|
0.02
|
0.01
|
0.01
|
0.02
|
0.02
|
|||
|
Nuclear refueling outage expense
|
-
|
-
|
0.02
|
0.02
|
-
|
-
|
0.02
|
0.02
|
|||
|
Share repurchase effect
|
0.01
|
0.01
|
-
|
-
|
-
|
-
|
0.01
|
0.01
|
|||
|
Preferred dividend requirements
|
-
|
-
|
0.01
|
0.01
|
(0.01)
|
(0.01)
|
-
|
-
|
|||
|
Taxes other than income taxes
|
(0.01)
|
(0.01)
|
(0.02)
|
(0.02)
|
-
|
-
|
(0.03)
|
(0.03)
|
|||
|
Interest expense and other charges
|
(0.01)
|
(0.01)
|
-
|
-
|
(0.03)
|
(0.03)
|
(0.04)
|
(0.04)
|
|||
|
Depreciation / amortization expense
|
(0.02)
|
(0.02)
|
(0.02)
|
(0.02)
|
-
|
-
|
(0.04)
|
(0.04)
|
|||
|
Other operation & maintenance expense
|
(0.15)
|
(0.10)
|
(t)
|
(0.06)
|
(0.06)
|
(u)
|
(0.02)
|
(0.02)
|
(0.23)
|
(0.18)
|
|
|
Net revenue
|
(0.53)
|
(0.53)
|
(v)
|
(0.10)
|
(0.10)
|
(w)
|
-
|
-
|
(0.63)
|
(0.63)
|
|
|
2012 earnings
|
1.72
|
1.77
|
0.46
|
0.46
|
(0.12)
|
(0.12)
|
2.06
|
2.11
|
|||
|
Appendix B-2: As-Reported and Operational Earnings Per Share Variance Analysis
|
|||||||||||
|
Year-to-date 2012 vs. 2011
|
|||||||||||
|
(Per share in U.S. $, sorted in consolidated operational column, most to least favorable)
|
|||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
||||||||
|
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
As-
Reported
|
Opera-
tional
|
||||
|
2011 earnings
|
2.30
|
2.30
|
1.04
|
1.04
|
(0.20)
|
(0.20)
|
3.14
|
3.14
|
|||
|
Income taxes - other
|
0.81
|
0.81
|
(p)
|
0.11
|
0.11
|
(q)
|
(0.10)
|
(0.10)
|
(r)
|
0.82
|
0.82
|
|
Decommissioning expense
|
(0.01)
|
(0.01)
|
0.15
|
0.15
|
(s)
|
-
|
-
|
0.14
|
0.14
|
||
|
Other income (deductions) - other
|
0.02
|
0.02
|
0.04
|
0.04
|
-
|
-
|
0.06
|
0.06
|
|||
|
Nuclear refueling outage expense
|
-
|
-
|
0.02
|
0.02
|
-
|
-
|
0.02
|
0.02
|
|||
|
Share repurchase effect
|
0.02
|
0.02
|
(0.01)
|
(0.01)
|
-
|
-
|
0.01
|
0.01
|
|||
|
Asset impairment
|
-
|
-
|
(1.26)
|
-
|
(x)
|
-
|
-
|
(1.26)
|
-
|
||
|
Preferred dividend requirements
|
-
|
-
|
0.01
|
0.01
|
(0.01)
|
(0.01)
|
-
|
-
|
|||
|
Taxes other than income taxes
|
(0.02)
|
(0.02)
|
(0.05)
|
(0.05)
|
(y)
|
-
|
-
|
(0.07)
|
(0.07)
|
||
|
Interest expense and other charges
|
(0.03)
|
(0.03)
|
(0.01)
|
(0.01)
|
(0.04)
|
(0.04)
|
(0.08)
|
(0.08)
|
|||
|
Depreciation / amortization expense
|
(0.05)
|
(0.05)
|
(z)
|
(0.04)
|
(0.04)
|
-
|
-
|
(0.09)
|
(0.09)
|
||
|
Other operation & maintenance expense
|
(0.30)
|
(0.21)
|
(t)
|
(0.14)
|
(0.14)
|
(u)
|
(0.02)
|
(0.01)
|
(0.46)
|
(0.36)
|
|
|
Net revenue
|
(0.67)
|
(0.67)
|
(v)
|
(0.35)
|
(0.35)
|
(w)
|
(0.01)
|
(0.01)
|
(1.03)
|
(1.03)
|
|
|
2012 earnings
|
2.07
|
2.16
|
(0.49)
|
0.77
|
(0.38)
|
(0.37)
|
1.20
|
2.56
|
|||
|
|
(p)
|
The current quarter and year-to-date increases were largely driven by an agreement reached with the IRS in second quarter 2012 regarding storm cost financings in Louisiana; the resolution of this item resulted in a significant decrease in income tax expense. The year-to-date increase was partially offset by higher income tax expense associated with the write off of an Entergy Gulf States Louisiana regulatory asset in the first quarter of 2012.
|
|
|
(q)
|
Increases in the current quarter and year-to-date were due primarily to the absence of the change in Michigan tax law stemming from legislation enacted in May 2011.
|
|
|
(r)
|
The current quarter and year-to-date decreases reflected favorable tax items in the current and prior periods. Second quarter 2012 benefited from a favorable decision received in June 2012 from the U.S. Court of Appeals for the Fifth Circuit affirming Entergy’s entitlement to claim foreign tax credits for the U.K. Windfall Tax. The second quarter of 2011 benefited from a reversal of a tax reserve related to an IRS settlement, which exceeded income tax adjustments recorded in the current period.
|
|
|
(s)
|
The current quarter and year-to-date increases were due primarily to a reduction in the asset retirement obligation, reducing decommissioning expense, which factored in, among other things, an updated decommissioning cost study for the Pilgrim Nuclear Power Station.
|
|
|
(t)
|
Decreases in the current quarter and year-to-date were largely attributable to higher compensation and benefits costs (largely pension) as well as increased fossil outage and distribution spending (both due partly to timing). Absence of nuclear insurance refunds received in the first quarter of 2011 also contributed to the year-to-date decrease. Deferral of previously incurred MISO implementation costs as approved by the Federal Energy Regulatory Commission and the Louisiana Public Service Commission provided a partial offset. Expenses incurred in connection with the planned spin-merge of the transmission business also contributed to the as-reported decreases.
|
|
(u)
|
Decreases in the current quarter and year-to-date were due primarily to higher compensation and benefits costs (largely pension) and the RISEC acquisition.
|
|
Utility Net Revenue Variance Analysis
2012 vs. 2011
($ EPS)
|
||
|
Second Quarter
|
Year-to-Date
|
|
|
Weather
|
(0.10)
|
(0.37)
|
|
Sales growth / pricing
|
0.10
|
0.26
|
|
Regulatory agreement
|
(0.57)
|
(0.57)
|
|
Other
|
0.04
|
0.01
|
|
Total
|
(0.53)
|
(0.67)
|
|
(v)
|
The current quarter and year-to-date decreases were due largely to a regulatory charge resulting from the agreement to share income tax benefits resulting from an IRS agreement discussed in (p) above. Weather, as compared to the prior periods, also contributed to the decreases. The decreases were partially offset by positive weather-adjusted sales growth and the net effects of regulatory actions in several jurisdictions, including Entergy Texas and Entergy New Orleans as well as Entergy Louisiana’s rate action relating to the acquisition of Unit 2 of the Acadia Energy Center.
|
|
(w)
|
Decreases in the current quarter and year-to-date were due primarily to lower energy pricing as well as lower generation for the non-utility nuclear fleet. Decreased generation is attributable to higher refueling and unplanned outage days. The effect of outage days was offset by exercise of resupply options provided for in power purchase agreements whereby EWC may elect to supply power from another source when the plant is not running. The majority of the resupply benefit in the current quarter was realized from one long-term power purchase agreement. Revenues from RISEC, which was acquired in the fourth quarter of 2011, also partially offset the decrease.
|
|
(x)
|
The year-to-date as-reported decrease was due to the first quarter 2012 impairment loss to write down the carrying values of Vermont Yankee’s long-lived assets to their fair value, in accordance with GAAP.
|
|
(y)
|
The year-to-date decrease was due primarily to higher property tax for the James A. FitzPatrick Nuclear Power Plant, which resulted from expiration of an agreement entered into shortly after the plant was acquired, and higher payroll taxes.
|
|
(z)
|
The year-to-date decrease reflects higher depreciable plant balances.
|
Appendix B-3 lists special items by business with quarter-to-quarter and year-to-date comparisons. Amounts are shown on both earnings per share and net income bases. Special items are those events that are not routine, are related to prior periods, or are related to discontinued businesses. Special items are included in as-reported earnings per share consistent with GAAP, but are excluded from operational earnings per share. As a result, operational earnings per share is considered a non-GAAP measure.
|
Appendix B-3: Special Items (shown as positive / (negative) impact on earnings)
|
||||||
|
Second Quarter and Year-to-Date 2012 vs. 2011
|
||||||
|
(Per share in U.S. $)
|
||||||
|
Second Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
Utility
|
||||||
|
Transmission business spin-merge expenses
|
(0.05)
|
-
|
(0.05)
|
(0.09)
|
-
|
(0.09)
|
|
Entergy Wholesale Commodities
|
||||||
|
Vermont Yankee asset impairment
|
-
|
-
|
-
|
(1.26)
|
-
|
(1.26)
|
|
Parent & Other
|
||||||
|
Transmission business spin-merge expenses
|
-
|
-
|
-
|
(0.01)
|
-
|
(0.01)
|
|
Total Special Items
|
(0.05)
|
-
|
(0.05)
|
(1.36)
|
-
|
(1.36)
|
|
(U.S. $ in millions)
|
||||||
|
Second Quarter
|
Year-to-Date
|
|||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
|
Utility
|
||||||
|
Transmission business spin-merge expenses
|
(9.9)
|
-
|
(9.9)
|
(15.7)
|
-
|
(15.7)
|
|
Entergy Wholesale Commodities
|
||||||
|
Vermont Yankee asset impairment
|
-
|
-
|
-
|
(223.5)
|
-
|
(223.5)
|
|
Parent & Other
|
||||||
|
Transmission business spin-merge expenses
|
0.3
|
-
|
0.3
|
(1.0)
|
-
|
(1.0)
|
|
Total Special Items
|
(9.6)
|
-
|
(9.6)
|
(240.2)
|
-
|
(240.2)
|
|
C.
|
Regulatory Summary
|
|
|
Appendix C provides a summary of selected regulatory cases and events that are pending.
|
|
Appendix C: Regulatory Summary Table
|
|
|
Company
|
Pending Cases / Events
|
|
Retail Regulation
|
|
|
Entergy Arkansas
Authorized ROE: 10.2%
Last Filed Rate Base:
$4.0 billion filed 6/10 based on 6/30/09 test yr, with known and measurable changes through 6/30/10
|
Rate Case Recent Activity: None.
Background: EAI implemented a $63.7 million rate increase in July 2010 pursuant to the settlement approved by the Arkansas Public Service Commission (APSC) in June 2010 authorizing a 10.2 percent allowed return on equity (ROE).
|
|
Hot Spring Acquisition Recent Activity: On July 11, 2012, the APSC approved EAI’s acquisition of the Hot Spring plant as in the public interest. The APSC also approved recovery of the acquisition costs through a capacity acquisition rider and set the ROE for the rider at 10.2 percent. The U.S. Department of Justice (DOJ) review of the transaction is ongoing. Closing has been delayed while the DOJ continues its review. EAI does not know when the DOJ will conclude its review or the extent to which its review of the transaction will be affected by the ongoing civil investigation of competitive issues of the Utility operating companies.
Background: On April 29, 2011, EAI announced that it signed an asset purchase agreement to acquire the Hot Spring Energy Facility, a 620 MW natural gas-fired combined-cycle turbine plant located in Hot Spring County, Arkansas, from KGen Hot Spring LLC, a subsidiary of KGen Power Corporation. The total expected cost is $277 million (or $447/kW), including the purchase price of approximately $253 million (or $408/kW) and planned plant upgrades, transaction costs, and contingencies and excluding transmission upgrades and any purchase price premium for delay in obtaining required regulatory approvals. On February 9, 2012, the Federal Energy Regulatory Commission (FERC) issued an order authorizing the Hot Spring acquisition under Section 203 of the Federal Power Act. EAI and KGen Hot Spring LLC have satisfied their obligations under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act).
|
|
|
Entergy Gulf States Louisiana
Authorized ROE Range:
9.9% - 11.4% (electric)
10.0% - 11.0% (gas)
Last Filed Rate Base:
$2.4 billion (electric) filed 5/12 based on 12/31/11 test yr
$0.05 billion (gas) filed 4/12 based on 9/30/11 test yr
|
Formula Rate Plan Recent Activity: On May 31, 2012, EGSL filed its 2011 test year formula rate plan (FRP). The ROE reflected in the filing was 11.94 percent, above the earnings bandwidth. If approved as filed, cost of service rates will decrease $(6.5) million. The filing also reflected a $(22.9) million decrease outside of the FRP sharing mechanism for capacity costs and a $0.56 million increase associated with a realignment of SO2 costs from the Fuel Adjustment Clause to base rates. EGSL is required to file a full rate case by January 2013. In June 2012, the Louisiana Public Service Commission (LPSC) directed that the recovery of costs associated with preliminary new nuclear development activities at the River Bend site should be determined in connection with this next rate case filing, instead of under the LPSC’s New Nuclear Incentive Rule.
Background: At its October 2009 Business and Executive (B&E) session, the LPSC approved an uncontested settlement which, among other things, extended the FRP regulatory process for an additional three years. The new FRP, adopted for the 2008-2010 test years, retained the 10.65 percent ROE midpoint with a +/- 75 basis point bandwidth and a recovery mechanism for LPSC-approved capacity additions. Earnings outside the bandwidth are allocated prospectively, 60 percent to customers and 40 percent to EGSL. In November 2011, the LPSC approved a one-year extension of EGSL’s current FRP.
|
|
Entergy Louisiana
Authorized ROE Range:
9.45% - 11.05%
Last Filed Rate Base:
$3.6 billion filed 5/12 based on 12/31/11 test yr
|
Formula Rate Plan Recent Activity: On May 15, 2012, ELL filed its 2011 test year FRP. The ROE reflected in the filing was 9.63 percent, within the earnings bandwidth. If approved as filed, there will be no cost of service rate change. The filing also reflected an $18.1 million increase outside of the FRP sharing mechanism for capacity costs. Subsequently, on June 22, 2012, ELL supplemented its 2011 FRP filing to estimate the first year revenue requirement associated with the Waterford 3 replacement steam generator (RSG) project. ELL is required to file a full rate case by January 2013. In June 2012, the LPSC directed that the recovery of costs associated with preliminary new nuclear development activities at the River Bend site should be determined in connection with this next rate case filing, instead of under the LPSC’s New Nuclear Incentive Rule.
Background: At its October 2009 B&E session, the LPSC approved an uncontested settlement which, among other things, extended the FRP regulatory process for an additional three years. The new FRP, adopted for the 2008-2010 test years, retained the 10.25 percent ROE midpoint with a +/- 80 basis point bandwidth and a recovery mechanism for LPSC-approved capacity additions. Earnings outside the bandwidth are allocated prospectively, 60 percent to customers and 40 percent to ELL. In November 2011, the LPSC approved a one-year extension of ELL’s current FRP. As part of the one-year extension, if the Waterford 3 RSG project is completed by March 31, 2013, ELL shall be permitted to include in rates the revenue requirement associated with the project upon completion. Inclusion of the revenue requirement shall be on a subject-to-refund basis pending proceedings by the LPSC to review the prudence of costs related to project construction. For the rate-effective period of the 2011 test year prior to the project’s completion, earnings above certain levels will be recorded as a regulatory liability used to offset the Waterford 3 RSG project’s revenue requirement. Beginning in September 2012 (the normal FRP rate change date) and ending the earlier of (1) when the project is closed to plant or (2) January 1, 2013, earnings in excess of the upper band (11.05 percent) shall be recognized by recording a regulatory liability. After January 1, 2013, earnings in excess of 10.25 percent shall be recognized by recording a regulatory liability. Upon the project’s completion, earnings above 10.25 percent shall be used to offset the project’s revenue requirement. The total regulatory liability shall be amortized to the project’s revenue requirement over the first twelve months of operation. These rates are anticipated to remain in effect until ELL’s next full rate case is resolved.
|
|
Waterford 3 Steam Generator Replacement Recent Activity: On April 30, 2012, ELL filed its Quarterly Monitoring Report indicating that the Waterford 3 RSG project continues to meet revised cost estimates and the revised schedule for installation in Fall 2012. See also, ELL - Formula Rate Plan Recent Activity and Background.
Background: On June 26, 2008, ELL petitioned the LPSC to replace two steam generators, the reactor vessel closure head and control drive mechanisms. On November 12, 2008, the LPSC approved the stipulated settlement, finding that the decision to undertake this project at an estimated cost of $511 million was prudent and the timing concurrent with the 2011 outage was reasonable. On December 17, 2010, ELL notified the LPSC that Westinghouse advised that the
|
|
|
Appendix C: Regulatory Summary Table (continued)
|
|
|
Company
|
Pending Cases / Events
|
|
Retail Regulation
|
|
|
Entergy Louisiana
(continued)
|
Waterford 3 RSGs would not be completed and delivered in time to maintain the then current project schedule for installation during the Spring 2011 refueling outage. On June 15, 2011, ELL filed a Special Monitoring Report to reflect the updated cost and schedule associated with the project. The installation schedule was revised from the Spring 2011 refueling outage to the Fall 2012 refueling outage. Additional funding of approximately $176 million is required, bringing the revised replacement project total to approximately $687 million. On December 19, 2011, ELL filed an application to establish the revenue requirement for the project that will be placed into rates, subject to refund pending a review of the prudence of the project costs, upon the commercial operation. Pending the final determination of the revenue requirement, through its 2011 test year FRP filing, ELL will place the Waterford 3 RSG costs into rates subject to refund.
|
|
Entergy Mississippi
Authorized ROE Range:
9.88% - 12.01%
(per revised FRP filing)
Last Filed Rate Base:
$1.7 billion filed 3/12 based on 12/31/11 test yr
|
Formula Rate Plan Recent Activity: On March 15, 2012, EMI filed its 2012 FRP evaluation report for the 2011 test year with the Mississippi Public Service Commission (MPSC); the evaluation report was subsequently revised on April 30, 2012. The revised filing reflected a 10.92 percent earned ROE which was within the bandwidth. If approved as filed, there will be no change in rates. The revised 10.95 percent FRP midpoint ROE included the benefit of a 0.62 percent performance incentive.
Background: On March 4, 2010, the MPSC approved modifications to EMI’s FRP that (1) aligned EMI’s FRP more closely with the FRPs of the other regulated gas and electric utilities in Mississippi; (2) provided the opportunity to reset the ROE and bandwidth based upon performance ratings; (3) rescored the performance adjustment factors;
(4) increased the percent of revenues limit to a 4 percent limit, with any adjustment over 2 percent requiring a hearing; and (5) directed EMI to phase-out the summer / winter rate differential in residential rates over two years. Returns inside the bandwidth result in no change in rates while returns outside the bandwidth reset rates prospectively to or within the bandwidth depending on performance. The annual filing occurs each March with rates effective each June. EMI’s FRP does not have an expiration date.
|
|
Hinds Acquisition Recent Activity: The retail cost recovery proceeding remains pending before the MPSC. The DOJ review of the transaction is ongoing. Closing has been delayed while the DOJ continues its review. EMI does not know when the DOJ will conclude its review or the extent to which its review of the transaction will be affected by the ongoing civil investigation of competitive issues of the Utility operating companies.
Background: On April 29, 2011, EMI announced that it signed an asset purchase agreement to acquire the Hinds Energy Facility, a 450 MW (summer rating) natural gas-fired combined-cycle turbine plant located in Jackson, Mississippi, from KGen Hinds LLC, a subsidiary of KGen Power Corporation. The total expected cost is $246 million (or $547/kW), including the purchase price of approximately $206 million (or $458/kW) and planned plant upgrades, transaction costs, and contingencies and excluding transmission upgrades and any purchase price premium for delay in obtaining required regulatory approvals. On February 9, 2012, FERC issued an order authorizing the Hinds acquisition under Section 203 of the Federal Power Act. On February 28, 2012, the MPSC approved certification of the transaction. EMI and KGen Hinds LLC have satisfied their obligations under the HSR Act.
|
|
|
Entergy New Orleans
Authorized ROE Range:
10.7% - 11.5% (electric)
10.25% - 11.25% (gas)
Last Filed Rate Base:
$0.3 billion (electric),
$0.09 billion (gas) filed 5/12 based on 12/31/11 test yr
|
Formula Rate Plan Recent Activity: On May 31, 2012, ENOI filed its 2011 test year FRP. The filing reflected a 9.84 percent earned ROE for electric and a 9.45 percent earned ROE for gas, both of which were below the bandwidths. If approved as filed, rates will increase $3 million for electric customers and $1 million for gas customers. As part of the filing, ENOI requested to accelerate the funding of its storm reserve fund to allow it to meet the target established by the Council of the City of New Orleans (CCNO) of a $75 million balance by 2017. The proposed increase is intended to replenish the $20 million expended for hurricanes Gustav and Ike. ENOI anticipates that it will discuss possible renewal or extension of the FRP with the CCNO Advisors during the course of the 2011 test year FRP proceeding. The CCNO would be required to approve any such renewal or extension.
Background: A new three-year FRP beginning with the 2009 test year was adopted in ENOI’s rate case settled in April 2009. Key provisions include an 11.1 percent electric ROE with a +/- 40 basis points bandwidth and a 10.75 percent gas ROE with a +/- 50 basis points bandwidth. Earnings outside the bandwidth reset to the midpoint ROE, with rates changing on a prospective basis depending on whether ENOI is over or under-earning. The FRP also includes a recovery mechanism for CCNO-approved capacity additions plus provisions for extraordinary cost changes and force majeure. The FRP may be extended by the mutual agreement of ENOI and the CCNO. The settlement also implemented energy conservation and demand side management programs.
|
|
Entergy Texas
Authorized ROE: 10.125%
Last Filed Rate Base:
$1.7 billion filed 11/11 based on 6/30/11 adjusted test yr
|
Rate Case Recent Activity: During the April 24, 2012 through May 4, 2012 hearing and in its post-hearing brief, the Public Utility Commission of Texas (PUCT) Staff revised its recommendation downward to a $27 million rate increase, retaining its recommended 9.6 percent ROE. On July 6, 2012, the Administrative Law Judges issued a proposal for decision (PFD) recommending an overall rate increase of $16.4 million; however, the PUCT Staff’s workpapers supporting the PFD indicated a $28.3 million rate increase. The PFD recommended an allowed ROE of 9.8 percent. ETI and other parties filed exceptions to the PFD on July 23, 2012. The matter has been placed on the agenda for consideration at the August 17, 2012 PUCT open meeting.
Background: On November 28, 2011, ETI filed its rate case requesting a $111.8 million base rate increase and a 10.6 percent ROE based on an adjusted twelve-month test year ending June 30, 2011. As part of the filing, ETI proposed a Purchased Power Recovery (PPR) rider. On January 12, 2012, the PUCT voted to not address the PPR rider in the current rate case; however, the PUCT voted to set a baseline in this rate case that would be applicable if a PPR rider is approved in the open rulemaking project docket. On April 3, 2012, the PUCT Staff filed direct testimony recommending a base rate increase of $66.1 million and a 9.6 percent ROE. On April 13, 2012, ETI filed rebuttal testimony indicating a revised request for a $104.8 million base rate increase.
|
|
Other Recent Regulatory Activity: None.
Background: On March 10, 2011, the PUCT opened a rulemaking to review recovery of purchased power capacity costs. The parties provided comments in June 2011 and the PUCT Staff subsequently held a technical conference.
|
|
|
Appendix C: Regulatory Summary Table (continued)
|
||||
|
Company
|
Pending Cases / Events
|
|||
|
Wholesale Regulation
|
||||
|
System Energy Resources, Inc.
Authorized ROE:
10.94%
Last Calculated Rate Base:
$1.0 billion for 6/30/12 monthly cost of service
|
Recent Activity: None.
Background: 10.94 percent ROE approved by July 2001 FERC order.
Grand Gulf Uprate: Implementation of the approximate 178 MW uprate was completed during the Spring 2012 refueling outage. SERI owns or leases 90 percent of the plant. The total capital investment made in the course of the implementation of the Grand Gulf uprate project is estimated at approximately $874 million, including South Mississippi Electric Power Association’s 10 percent share. On November 30, 2009, the MPSC issued a Certificate of Public Convenience and Necessity for implementation of the uprate. In July 2012, the NRC approved the license amendment, allowing the plant to operate at the uprated capacity level.
|
|||
|
Transmission, Proposal to Join MISO and System Agreement
Authorized ROE:
11.0% (aa)
Last Filed OATT Rate Base:
$2.3 billion (bb) filed 5/12 based on 12/31/11 test year
|
Proposal to Join MISO Recent Activity: On May 23, 2012, the LPSC approved EGSL’s and ELL’s request for MISO membership, subject to certain contingencies and conditions, as is in the public interest. On May 30-31, 2012, a hearing was held on EAI’s request to join MISO; an APSC decision is pending. On April 30, 2012, ETI submitted its change of control filing to the PUCT; the hearing on ETI’s application commenced on July 30, 2012. The MPSC hearing on EMI’s application, previously scheduled to begin in July 2012, has been delayed to allow parties additional time to conduct further analysis.
On June 28, 2012, the LPSC approved EGSL’s and ELL’s request to transition to MISO as the next Independent Coordinator of Transmission (ICT) as of November 2012 (the end of the current ICT arrangement) until the Utility operating companies join the MISO RTO, targeted for December 2013.
FERC filings related to integrating the Utility operating companies into MISO are targeted for the second half of 2012.
Background: In November 2006, the Utility operating companies installed Southwest Power Pool (SPP) as their ICT with an initial term of four years unless Entergy filed and FERC approved an extension beyond that four-year period (subsequently extended for two years). The Utility operating companies did not transfer control of the transmission system but rather vested the ICT with responsibility, among others, for granting or denying transmission service, administering the OASIS node, developing a base plan for the transmission system that is used to determine whether costs of transmission upgrades should be rolled into transmission rates or directly assigned to customers requesting or causing the upgrade to be built, serving as reliability coordinator for the transmission system, and overseeing the weekly procurement process. The current arrangement ends November 2012.
On May 12, 2011, the Utility operating companies submitted detailed analysis to their respective retail regulators supporting their conclusion that joining MISO will provide meaningful long-term benefits for customers. The proposal to join MISO also addresses the exit of EAI and EMI from the System Agreement. EAI, EGSL, ELL, EMI and ENOI submitted their change of control filings to their respective regulators in the fourth quarter of 2011.
On April 19, 2012, FERC conditionally accepted MISO’s proposal related to the allocation of transmission upgrade costs in connection with the transition and integration of the Utility operating companies into MISO. In addition, the Utility operating companies have agreed to give authority to the Entergy Regional State Committee (E-RSC), upon unanimous vote and within the first five years after the Utility operating companies join MISO, (i) to direct the allocation of certain transmission upgrade costs among the Utility operating companies’ transmission pricing zones in a manner that differs from the allocation that would occur under the MISO tariff and (ii) to direct the Utility operating companies as transmission owners to add projects to MISO’s transmission expansion plan. The E-RSC, comprised of one representative from each of the Utility operating company retail regulators, was formed in 2009 to consider several of the issues related to the Entergy transmission system.
|
|||
|
System Agreement Recent Activity: On May 31, 2012, the rough production cost equalization (RPCE) bandwidth filing based on 2011 test year data was made at FERC. The calculation provided in the filing indicated that EAI will need to make a $41 million payment to ELL.
On June 21, 2012, FERC issued an order affirming in part and reversing in part the initial decision issued by the administrative law judge in December 2010 relating to an LPSC complaint involving Entergy’s accounting for wholesale opportunity sales of energy by EAI to third parties during the period 2000 through 2009. The order found that, although the sales at issue were permitted under the System Agreement and were made and priced in good faith, the after-the-fact accounting methodology used to allocate the energy used to supply the sales was inconsistent with the System Agreement. Quantifying the effects of FERC’s decision will require re-running intra-system bills, and Entergy is unable to estimate the potential effects of the reallocation at this time; the FERC decision established further hearing procedures to determine the calculations. On July 23, 2012, Entergy filed a request for rehearing.
Background: The System Agreement case addresses the allocation of production costs among the Utility operating companies. In 2005, FERC issued orders that require each Utility operating company’s production costs to be within +/- 11 percent of System average production costs and set 2007 as the first possible year of payments among the Utility operating companies, based on calendar year 2006 actual production costs. A subsequent FERC order in late 2011, addressing a directive by the U.S. Court of Appeals for the DC Circuit (DC Circuit), concluded that the prospective bandwidth remedy should begin on June 1, 2005 (the date of its initial order in the proceeding).
Since 2007, bandwidth filings have required payments from EAI to various other Utility operating companies totaling over $1.2 billion. FERC set each of the 2007 through 2011 bandwidth filings for hearing following protests from retail regulatory commissions and / or third parties. Requests for rehearing and clarification of a final FERC order in the 2007 bandwidth proceeding were filed. All other bandwidth proceedings, as well as protests of the compliance filing associated with calculations for RPCE payments for the period of June through December 2005, remain outstanding.
On November 19, 2009, FERC accepted EAI’s and EMI’s notices to withdraw from the System Agreement effective December 2013 and November 2015, respectively. After FERC denied their requests for rehearing, the LPSC and CCNO subsequently appealed the decision to the DC Circuit. On January 13, 2012, the DC Circuit held oral argument of the LPSC and CCNO appeals.
|
|
|||
|
(aa)
|
Applies to sales made under Entergy’s FERC-jurisdictional Open Access Transmission Tariff (OATT).
|
|
(bb)
|
Reflects transmission rate base in Entergy’s FERC OATT filing, which is also included in the rate base figures for each of the Utility operating companies shown above.
|
|
D.
|
Financial and Historical Performance Measures
|
Appendix D-1 provides comparative financial performance measures for the current quarter. Appendix D-2 provides historical financial performance measures and operating performance metrics for the trailing eight quarters. Financial performance measures in both tables include those calculated and presented in accordance with GAAP, as well as those that are considered non-GAAP measures.
As-reported measures are computed in accordance with GAAP as they include all components of net income, including special items. Operational measures are non-GAAP measures as they are calculated using operational net income, which excludes the impact of special items. A reconciliation of operational measures to as-reported measures is provided in Appendix G.
|
Appendix D-1: GAAP and Non-GAAP Financial Performance Measures
|
||||
|
Second Quarter 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||
|
For 12 months ending June 30
|
2012
|
2011
|
Change
|
|
|
GAAP Measures
|
||||
|
Return on average invested capital – as-reported
|
6.2%
|
7.7%
|
(1.5%)
|
|
|
Return on average common equity – as-reported
|
11.3%
|
14.8%
|
(3.5%)
|
|
|
Net margin – as-reported
|
9.2%
|
11.5%
|
(2.3%)
|
|
|
Cash flow interest coverage
|
7.2
|
7.6
|
(0.4)
|
|
|
Book value per share
|
$50.96
|
$48.62
|
$2.34
|
|
|
End of period shares outstanding (millions)
|
177.2
|
176.8
|
0.4
|
|
|
Non-GAAP Measures
|
||||
|
Return on average invested capital – operational
|
7.4%
|
7.9%
|
(0.5%)
|
|
|
Return on average common equity – operational
|
14.2%
|
15.2%
|
(1.0%)
|
|
|
Net margin – operational
|
11.6%
|
11.8%
|
(0.2%)
|
|
|
As of June 30 ($ in millions)
|
2012
|
2011
|
Change
|
|
|
GAAP Measures
|
||||
|
Cash and cash equivalents
|
283
|
530
|
(247)
|
|
|
Revolver capacity
|
2,762
|
1,993
|
769
|
|
|
Total debt
|
12,533
|
12,360
|
173
|
|
|
Securitization debt
|
1,020
|
896
|
124
|
|
|
Debt to capital ratio
|
57.4%
|
58.1%
|
(0.7%)
|
|
|
Off-balance sheet liabilities:
|
||||
|
Debt of joint ventures – Entergy’s share
|
92
|
101
|
(9)
|
|
|
Leases – Entergy’s share
|
508
|
546
|
(38)
|
|
|
Total off-balance sheet liabilities
|
600
|
647
|
(47)
|
|
|
Non-GAAP Measures
|
||||
|
Debt to capital ratio, excluding securitization debt
|
55.3%
|
56.3%
|
(1.0%)
|
|
|
Total gross liquidity
|
3,045
|
2,523
|
522
|
|
|
Net debt to net capital ratio, excluding securitization debt
|
54.7%
|
55.1%
|
(0.4%)
|
|
|
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
|
56.0%
|
56.5%
|
(0.5%)
|
|
|
Appendix D-2: Historical Performance Measures
(see Appendix F for definitions of measures)
|
|||||||||||||
|
3Q10
|
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
12YTD
|
11YTD
|
||||
|
Financial
|
|||||||||||||
|
EPS – as-reported ($)
|
2.62
|
1.26
|
1.38
|
1.76
|
3.53
|
0.87
|
(0.86)
|
2.06
|
1.20
|
3.14
|
|||
|
Less – special items ($)
|
(0.14)
|
(0.04)
|
- -
|
- -
|
- -
|
(0.07)
|
(1.30)
|
(0.05)
|
(1.36)
|
- -
|
|||
|
EPS – operational ($)
|
2.76
|
1.30
|
1.38
|
1.76
|
3.53
|
0.94
|
0.44
|
2.11
|
2.56
|
3.14
|
|||
|
Trailing twelve months
|
|||||||||||||
|
ROIC – as-reported (%)
|
8.2
|
7.8
|
7.7
|
7.7
|
8.2
|
8.0
|
6.0
|
6.2
|
|||||
|
ROIC – operational (%)
|
8.7
|
8.2
|
7.9
|
7.9
|
8.2
|
8.0
|
7.2
|
7.4
|
|||||
|
ROE – as-reported (%)
|
15.5
|
14.6
|
14.8
|
14.8
|
16.1
|
15.4
|
10.8
|
11.3
|
|||||
|
ROE – operational (%)
|
16.6
|
15.6
|
15.3
|
15.2
|
16.1
|
15.6
|
13.6
|
14.2
|
|||||
|
Cash flow interest coverage
|
8.0
|
7.8
|
7.8
|
7.6
|
6.6
|
7.1
|
7.5
|
7.2
|
|||||
|
Debt to capital ratio (%)
|
57.5
|
57.3
|
57.6
|
58.1
|
57.3
|
57.3
|
57.9
|
57.4
|
|||||
|
Debt to capital ratio, excluding securitization debt (%)
|
55.6
|
55.3
|
55.7
|
56.3
|
55.1
|
55.0
|
55.7
|
55.3
|
|||||
|
Net debt to net capital ratio, excluding securitization debt (%)
|
50.9
|
52.1
|
54.0
|
55.1
|
52.8
|
53.5
|
54.2
|
54.7
|
|||||
|
Utility
|
|||||||||||||
|
GWh billed
|
|||||||||||||
|
Residential
|
12,365
|
7,750
|
9,042
|
7,993
|
12,376
|
7,274
|
7,760
|
7,940
|
15,700
|
17,034
|
|||
|
Commercial & Governmental
|
9,341
|
7,504
|
7,032
|
7,548
|
9,344
|
7,270
|
6,992
|
7,753
|
14,745
|
14,580
|
|||
|
Industrial
|
10,276
|
9,880
|
9,516
|
10,140
|
11,024
|
10,130
|
9,958
|
10,408
|
20,366
|
19,657
|
|||
|
Wholesale
|
1,063
|
1,021
|
947
|
1,036
|
1,038
|
1,090
|
732
|
836
|
1,568
|
1,983
|
|||
|
O&M expense per MWh (cc)
|
$16.41
|
$21.18
|
$17.89
|
$19.09
|
$14.93
|
$21.99
|
$20.08
|
$19.94
|
$20.01
|
$18.49
|
|||
|
Reliability – trailing twelve months
|
|||||||||||||
|
SAIFI
|
1.8
|
1.7
|
1.7
|
1.7
|
1.7
|
1.6
|
1.7
|
1.6
|
|||||
|
SAIDI
|
197
|
187
|
188
|
201
|
213
|
208
|
210
|
195
|
|||||
|
Entergy Wholesale Commodities
|
|||||||||||||
|
Operational adjusted EBITDA
($ millions)
|
246
|
281
|
253
|
174
|
241
|
193
|
144
|
127
|
272
|
427
|
|||
|
Owned Capacity in MW
|
6,351
|
6,351
|
6,016
|
6,016
|
6,016
|
6,599
|
6,612
|
6,612
|
6,612
|
6,016
|
|||
|
GWh billed
|
10,811
|
10,296
|
10,554
|
10,567
|
11,255
|
11,121
|
11,281
|
11,674
|
22,955
|
21,121
|
|||
|
Avg realized revenue per MWh
|
$61.08
|
$58.29
|
$56.79
|
$52.74
|
$56.02
|
$52.48
|
$49.29
|
$48.27
|
$48.77
|
$54.77
|
|||
|
Non-fuel O&M expense / purchased power per MWh (dd) (ee)
|
$29.35
|
$26.78
|
$24.86
|
$27.08
|
$25.39
|
$25.24
|
$25.16
|
$27.99
|
$26.60
|
$25.97
|
|||
|
EWC Nuclear Operational Measures
|
|||||||||||||
|
Capacity factor (%)
|
91
|
86
|
91
|
91
|
98
|
93
|
88
|
85
|
87
|
91
|
|||
|
GWh billed
|
9,888
|
9,644
|
9,913
|
9,993
|
10,645
|
10,367
|
9,838
|
10,426
|
20,264
|
19,906
|
|||
|
Avg realized revenue per MWh
|
$61.41
|
$58.80
|
$57.46
|
$52.38
|
$56.07
|
$53.00
|
$50.32
|
$48.67
|
$49.47
|
$54.91
|
|||
|
Production cost per MWh (dd)
|
$27.79
|
$25.23
|
$24.01
|
$25.96
|
$24.92
|
$25.92
|
$25.85
|
$26.61
|
$26.22
|
$24.99
|
|||
|
(cc)
|
2012 excludes the effect of the special item associated with the proposed spin-merge of the transmission business at Utility.
|
|
(dd)
|
2010 excludes the effects of the non-utility nuclear spin-off expenses special item at Entergy Wholesale Commodities.
|
|
(ee)
|
First quarter and year-to-date 2012 excludes the effect of the special item for impairment of the Vermont Yankee plant at Entergy Wholesale Commodities.
|
|
E.
|
Planned Capital Expenditures
|
The capital plan for 2012 through 2014 anticipates $7.1 billion for investment, including $3.2 billion of maintenance capital, as shown in Appendix E. The remaining $3.9 billion is for specific investments and other initiatives such as:
|
·
|
Utility: the Utility’s portfolio transformation strategy including the 620 MW Hot Spring and 450 MW Hinds power plant acquisitions (including planned plant upgrades, transaction costs and contingencies), an approximate 178 MW uprate project at the Grand Gulf nuclear plant and Entergy Louisiana’s Ninemile 6 new CCGT project; the steam generator replacement at Entergy Louisiana’s Waterford 3 nuclear unit; transmission upgrades and spending to support the Utility’s plan to join the MISO Regional Transmission Organization by December 2013. Generation capital commitments include minimal investment for environmental compliance projects. The effect of the increased cost estimate for the Grand Gulf nuclear plant uprate project, which increased approximately $120 million, is not reflected in the Utility capital plan (total capital investment including South Mississippi Electric Power Association’s share).
|
|
·
|
Entergy Wholesale Commodities: dry cask storage, nuclear license renewal efforts, component replacement and identified repairs across the fleet, NYPA value sharing, the Indian Point Independent Safety Evaluation and wedgewire screens at the Indian Point site.
|
|
Appendix E: 2012 – 2014 Planned Capital Expenditures
|
||||
|
($ in millions) – Prepared January 2012
|
||||
|
2012
|
2013
|
2014
|
Total
|
|
|
Maintenance capital
|
||||
|
Utility
|
||||
|
Generation
|
128
|
129
|
131
|
388
|
|
Transmission
|
282
|
273
|
255
|
810
|
|
Distribution
|
433
|
485
|
496
|
1,414
|
|
Other
|
91
|
89
|
103
|
283
|
|
Utility Total
|
934
|
976
|
985
|
2,895
|
|
Entergy Wholesale Commodities
|
90
|
120
|
107
|
317
|
|
Maintenance capital subtotal
|
1,024
|
1,096
|
1,092
|
3,212
|
|
Other capital commitments
|
||||
|
Utility
|
||||
|
Generation
|
1,428
|
583
|
358
|
2,369
|
|
Transmission
|
170
|
128
|
264
|
562
|
|
Distribution
|
17
|
11
|
11
|
39
|
|
Other
|
45
|
47
|
35
|
127
|
|
Utility Total
|
1,660
|
769
|
668
|
3,097
|
|
Entergy Wholesale Commodities
|
259
|
241
|
291
|
791
|
|
Other capital commitments subtotal
|
1,919
|
1,010
|
959
|
3,888
|
|
Total Planned Capital Expenditures
|
2,943
|
2,106
|
2,051
|
7,100
|
|
F.
|
Definitions
|
Appendix F provides definitions of certain operational performance measures, as well as GAAP and non-GAAP financial measures, all of which are referenced in this release.
|
Appendix F: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures
|
|
|
Utility
|
|
|
GWh billed
|
Total number of GWh billed to all retail and wholesale customers
|
|
O&M expense per MWh
|
Operation, maintenance and refueling expenses per MWh of billed sales, excluding fuel
|
|
SAIFI
|
System average interruption frequency index; average number per customer per year, excluding the impact of major storm activity
|
|
SAIDI
|
System average interruption duration index; average minutes per customer per year, excluding the impact of major storm activity
|
|
Number of retail customers
|
Number of customers at end of period
|
|
Entergy Wholesale Commodities
|
|
|
Owned capacity
|
Installed capacity owned and operated by Entergy Wholesale Commodities, including investments in wind generation accounted for under the equity method of accounting; EWC’s 335 MW ownership position in the Harrison County power plant was sold on December 31, 2010; EWC acquired the Rhode Island State Energy Center, a 583 MW natural gas-fired combined-cycle generating plant, on December 20, 2011
|
|
GWh billed
|
Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting
|
|
Average realized revenue per MWh
|
As-reported revenue per MWh billed for Entergy Wholesale Commodities, excluding revenue from the amortization of the Palisades below-market PPA and/or investments in wind generation accounted for under the equity method of accounting
|
|
Non-fuel O&M expense / purchased power per MWh
|
Operation, maintenance and refueling expenses and purchased power per MWh billed, excluding fuel and investments in wind generation accounted for under the equity method of accounting
|
|
Capacity factor
|
Normalized percentage of the period that the nuclear plants generate power
|
|
Production cost per MWh
|
Fuel and non-fuel operation and maintenance expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation)
|
|
Refueling outage days
|
Number of days lost for scheduled refueling outage during the period
|
|
Planned TWh of generation
|
Amount of output expected to be generated by Entergy Wholesale Commodities resources considering plant operating characteristics, outage schedules and expected market conditions which impact dispatch, assuming timely renewal of plant operating licenses and uninterrupted normal operations at all plants
|
|
Percent of planned generation sold
forward
|
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts or options that mitigate price uncertainty (consistent with assumptions used in earnings guidance) that may or may not require regulatory approval
|
|
Unit-contingent
|
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages
|
|
Unit-contingent with availability
guarantees
|
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages, unless the actual availability over a specified period of time is below an availability threshold specified in the contract
|
|
Firm LD
|
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract
|
|
Offsetting positions
|
Transactions for the purchase of energy, generally to offset a Firm LD transaction
|
|
Cost-based contracts
|
Contracts priced in accordance with cost-based rates, a ratemaking concept used for the design and development of rate schedules to ensure that the filed rate schedules recover only the cost of providing the service; these contacts are on owned non-utility resources located within Entergy’s service territory, which do not operate under market-based rate authority
|
|
Planned net MW in operation
|
Amount of capacity to be available to generate power and/or sell capacity considering uprates planned to be completed during the year
|
|
Percent of capacity sold forward
|
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
|
|
Bundled capacity and energy contract
|
A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold
|
|
Capacity contract
|
A contract for the sale of the installed capacity product in regional markets managed by ISO New England and the New York Independent System Operator
|
|
Average revenue under contract per MWh or per kW per month
|
Revenue on a per unit basis at which generation output, capacity or combination of both is expected to be sold to third parties (including offsetting positions), given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market Power Purchase Agreement for Palisades; revenue may fluctuate due to factors including positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management cost
|
Financial measures defined in the below table include measures prepared in accordance with GAAP, as well as non-GAAP measures. Non-GAAP measures are included in this release in order to provide metrics that remove the effect of not routine financial impacts from commonly used financial metrics.
|
Appendix F: Definitions of Operational Performance Measures and GAAP and Non-GAAP Financial Measures (continued)
|
|
|
Financial Measures – GAAP
|
|
|
Return on average invested capital – as-reported
|
12-months rolling net income attributable to Entergy Corporation (Net Income) adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
|
|
Return on average common equity – as-reported
|
12-months rolling Net Income divided by average common equity
|
|
Net margin – as-reported
|
12-months rolling Net Income divided by 12 months rolling revenue
|
|
Cash flow interest coverage
|
12-months cash flow from operating activities plus 12-months rolling interest paid, divided by interest expense
|
|
Book value per share
|
Common equity divided by end of period shares outstanding
|
|
Revolver capacity
|
Amount of undrawn capacity remaining on corporate and subsidiary revolvers
|
|
Total debt
|
Sum of short-term and long-term debt, notes payable, capital leases, and preferred stock with sinking fund on the balance sheet less non-recourse debt, if any
|
|
Debt of joint ventures (Entergy’s share)
|
Debt issued by business joint ventures at Entergy Wholesale Commodities
|
|
Leases (Entergy’s share)
|
Operating leases held by subsidiaries capitalized at implicit interest rate
|
|
Debt to capital ratio
|
Gross debt divided by total capitalization
|
|
Securitization debt
|
Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at Entergy Texas; the 2009 ice storm at Entergy Arkansas; and investment recovery of costs associated with the cancelled Little Gypsy repowering project at Entergy Louisiana
|
|
Financial Measures – Non-GAAP
|
|
|
Operational earnings
|
As-reported Net Income adjusted to exclude the impact of special items
|
|
Adjusted EBITDA
|
Earnings before interest, income taxes, depreciation and amortization, and interest and investment income excluding decommissioning expense, and other than temporary impairment losses on decommissioning trust fund assets
|
|
Operational adjusted EBITDA
|
Adjusted EBITDA excluding effects of special items
|
|
Return on average invested capital – operational
|
12-months rolling operational Net Income adjusted to include preferred dividends and tax-effected interest expense divided by average invested capital
|
|
Return on average common equity – operational
|
12-months rolling operational Net Income divided by average common equity
|
|
Net margin – operational
|
12-months rolling operational Net Income divided by 12 months rolling revenue
|
|
Total gross liquidity
|
Sum of cash and revolver capacity
|
|
Debt to capital ratio, excluding securitization debt
|
Gross debt divided by total capitalization, excluding securitization debt
|
|
Net debt to net capital ratio, excluding securitization debt
|
Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt
|
|
Net debt to net capital ratio, including off-balance sheet liabilities, excluding securitization debt
|
Sum of gross debt and off-balance sheet debt less cash and cash equivalents divided by sum of total capitalization and off-balance sheet debt less cash and cash equivalents, excluding securitization debt
|
|
G.
|
GAAP to Non-GAAP Reconciliations
|
Appendix G-1, Appendix G-2 and Appendix G-3 provide reconciliations of various non-GAAP financial measures disclosed in this release to their most comparable GAAP measure.
|
Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures – Return on Equity, Return on Invested Capital and Net Margin Metrics
|
||||||||
|
($ in millions)
|
||||||||
|
3Q10
|
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
|
|
As-reported net income-rolling 12 months (A)
|
1,336
|
1,250
|
1,285
|
1,285
|
1,421
|
1,346
|
946
|
996
|
|
Preferred dividends
|
20
|
20
|
20
|
20
|
20
|
21
|
21
|
21
|
|
Tax effected interest expense
|
358
|
354
|
327
|
320
|
320
|
316
|
322
|
329
|
|
As-reported net income, rolling 12 months including preferred dividends and tax effected interest expense (B)
|
1,714
|
1,624
|
1,632
|
1,625
|
1,761
|
1,683
|
1,289
|
1,346
|
|
Special items in prior quarters
|
(71)
|
(75)
|
(42)
|
(32)
|
(7)
|
-
|
(13)
|
(244)
|
|
Special items in current quarter
|
||||||||
|
Asset impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
(224)
|
-
|
|
Transmission spin-merge
|
-
|
-
|
-
|
-
|
-
|
(13)
|
(7)
|
(9)
|
|
Nuclear spin-off expenses
|
(25)
|
(7)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Total special items (C)
|
(96)
|
(82)
|
(42)
|
(32)
|
(7)
|
(13)
|
(244)
|
(253)
|
|
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
|
1,810
|
1,706
|
1,674
|
1,657
|
1,768
|
1,696
|
1,533
|
1,599
|
|
Operational earnings, rolling 12 months (A-C)
|
1,432
|
1,332
|
1,327
|
1,317
|
1,428
|
1,359
|
1,190
|
1,249
|
|
Average invested capital (D)
|
20,802
|
20,781
|
21,093
|
21,101
|
21,509
|
21,126
|
21,339
|
21,556
|
|
Average common equity (E)
|
8,608
|
8,555
|
8,698
|
8,684
|
8,849
|
8,729
|
8,725
|
8,814
|
|
Operating revenues (F)
|
11,453
|
11,488
|
11,269
|
11,210
|
11,273
|
11,229
|
11,072
|
10,787
|
|
ROIC – as-reported % (B/D)
|
8.2
|
7.8
|
7.7
|
7.7
|
8.2
|
8.0
|
6.0
|
6.2
|
|
ROIC – operational % ((B-C)/D)
|
8.7
|
8.2
|
7.9
|
7.9
|
8.2
|
8.0
|
7.2
|
7.4
|
|
ROE – as-reported % (A/E)
|
15.5
|
14.6
|
14.8
|
14.8
|
16.1
|
15.4
|
10.8
|
11.3
|
|
ROE – operational % ((A-C)/E)
|
16.6
|
15.6
|
15.3
|
15.2
|
16.1
|
15.6
|
13.6
|
14.2
|
|
Net margin – as-reported % (A/F)
|
11.7
|
10.9
|
11.4
|
11.5
|
12.6
|
12.0
|
8.5
|
9.2
|
|
Net margin – operational % ((A-C)/F)
|
12.5
|
11.6
|
11.8
|
11.8
|
12.7
|
12.1
|
10.7
|
11.6
|
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
|
|||||||||
|
($ in millions)
|
|||||||||
|
3Q10
|
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
||
|
Gross debt (A)
|
12,247
|
11,816
|
12,018
|
12,360
|
12,452
|
12,387
|
12,619
|
12,533
|
|
|
Less securitization debt (B)
|
940
|
931
|
910
|
896
|
1,086
|
1,071
|
1,049
|
1,020
|
|
|
Gross debt, excluding securitization debt (C)
|
11,307
|
10,885
|
11,108
|
11,464
|
11,366
|
11,316
|
11,570
|
11,513
|
|
|
Less cash and cash equivalents (D)
|
1,931
|
1,294
|
726
|
530
|
987
|
694
|
685
|
283
|
|
|
Net debt, excluding securitization debt (E)
|
9,376
|
9,591
|
10,382
|
10,934
|
10,379
|
10,622
|
10,885
|
11,230
|
|
|
Total capitalization (F)
|
21,290
|
20,623
|
20,864
|
21,268
|
21,728
|
21,629
|
21,813
|
21,844
|
|
|
Less securitization debt (B)
|
940
|
931
|
910
|
896
|
1,086
|
1,071
|
1,049
|
1,020
|
|
|
Total capitalization, excluding securitization debt (G)
|
20,350
|
19,692
|
19,954
|
20,372
|
20,642
|
20,558
|
20,764
|
20,824
|
|
|
Less cash and cash equivalents (D)
|
1,931
|
1,294
|
726
|
530
|
987
|
694
|
685
|
283
|
|
|
Net capital, excluding securitization debt (H)
|
18,419
|
18,398
|
19,228
|
19,842
|
19,655
|
19,864
|
20,079
|
20,541
|
|
|
Debt to capital ratio % (A/F)
|
57.5
|
57.3
|
57.6
|
58.1
|
57.3
|
57.3
|
57.9
|
57.4
|
|
|
Debt to capital ratio, excluding securitization debt % (C/G)
|
55.6
|
55.3
|
55.7
|
56.3
|
55.1
|
55.0
|
55.7
|
55.3
|
|
|
Net debt to net capital ratio, excluding securitization debt % (E/H)
|
50.9
|
52.1
|
54.0
|
55.1
|
52.8
|
53.5
|
54.2
|
54.7
|
|
|
Off-balance sheet liabilities (I)
|
638
|
653
|
650
|
647
|
645
|
604
|
601
|
600
|
|
|
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
|
52.5
|
53.8
|
55.5
|
56.5
|
54.3
|
54.8
|
55.5
|
56.0
|
|
|
Revolver capacity (J)
|
2,216
|
2,354
|
2,258
|
1,993
|
2,116
|
2,001
|
2,825
|
2,762
|
|
|
Gross liquidity (D+J)
|
4,147
|
3,648
|
2,984
|
2,523
|
3,103
|
2,695
|
3,510
|
3,045
|
|
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Entergy Wholesale Commodities Operational Adjusted EBITDA
|
||||||||
|
($ in millions)
|
||||||||
|
3Q10
|
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
|
|
Net income
|
144
|
151
|
123
|
66
|
131
|
172
|
(169)
|
81
|
|
Add back: interest expense
|
6
|
5
|
5
|
5
|
6
|
6
|
7
|
6
|
|
Add back: income tax expense
|
30
|
83
|
85
|
64
|
64
|
12
|
(90)
|
46
|
|
Add back: depreciation and amortization
|
42
|
43
|
43
|
44
|
45
|
46
|
51
|
48
|
|
Subtract: interest and investment income
|
43
|
39
|
31
|
33
|
34
|
39
|
41
|
37
|
|
Add back: decommissioning expense
|
27
|
28
|
28
|
28
|
29
|
(4)
|
30
|
(17)
|
|
Subtract: other than temporary impairments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Adjusted EBITDA
|
206
|
270
|
253
|
174
|
241
|
193
|
(212)
|
127
|
|
Add back: special item for nuclear spin-off
expenses
|
40
|
11
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Add back: special item for asset impairment
|
-
|
-
|
-
|
-
|
-
|
-
|
356
|
-
|
|
Operational adjusted EBITDA
|
246
|
281
|
253
|
174
|
241
|
193
|
144
|
127
|
Entergy Corporation’s common stock is listed on the New York and Chicago exchanges under the symbol “ETR”.
Additional investor information can be accessed online at
www.entergy.com/investor_relations
*********************************************************************************************************************************
In this news release, and from time to time, Entergy makes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed in: (i) Entergy’s Form 10-K for the year ended December 31, 2011; (ii) Entergy’s Form 10-Q for the quarter ended March 31, 2012; and (iii) Entergy’s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (f) conditions in commodity and capital markets during the periods covered by the forward-looking statements, in addition to other factors described elsewhere in this release and subsequent securities filings; and (g) risks inherent in the proposed spin-off and subsequent merger of Entergy’s electric transmission business with a subsidiary of ITC Holdings Corp. Entergy cannot provide any assurances that the spin-off and merger transaction will be completed and cannot give any assurance as to the terms on which such transaction will be consummated. The spin-off and merger transaction is subject to certain conditions precedent, including regulatory approvals and approval by ITC Holdings Corp. shareholders.
|
VIII.
|
Financial Statements
|
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
June 30, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
ASSETS
|
||||||||||||||||
|
CURRENT ASSETS
|
||||||||||||||||
|
Cash and cash equivalents:
|
||||||||||||||||
|
Cash
|
$ | 83,400 | $ | 6,875 | $ | 4 | $ | 90,279 | ||||||||
|
Temporary cash investments
|
89,999 | 98,898 | 4,217 | 193,114 | ||||||||||||
|
Total cash and cash equivalents
|
173,399 | 105,773 | 4,221 | 283,393 | ||||||||||||
|
Securitization recovery trust account
|
37,428 | - | - | 37,428 | ||||||||||||
|
Notes receivable
|
- | 1,093,129 | (1,093,129 | ) | - | |||||||||||
|
Accounts receivable:
|
||||||||||||||||
|
Customer
|
423,450 | 137,474 | - | 560,924 | ||||||||||||
|
Allowance for doubtful accounts
|
(30,023 | ) | (203 | ) | - | (30,226 | ) | |||||||||
|
Associated companies
|
26,775 | 123,218 | (149,993 | ) | - | |||||||||||
|
Other
|
134,711 | 12,442 | 478 | 147,631 | ||||||||||||
|
Accrued unbilled revenues
|
358,790 | 331 | - | 359,121 | ||||||||||||
|
Total accounts receivable
|
913,703 | 273,262 | (149,515 | ) | 1,037,450 | |||||||||||
|
Deferred fuel costs
|
67,716 | - | - | 67,716 | ||||||||||||
|
Accumulated deferred income taxes
|
4,337 | - | - | 4,337 | ||||||||||||
|
Fuel inventory - at average cost
|
213,842 | 7,512 | - | 221,354 | ||||||||||||
|
Materials and supplies - at average cost
|
568,775 | 344,109 | - | 912,884 | ||||||||||||
|
Deferred nuclear refueling outage costs
|
100,547 | 135,275 | - | 235,822 | ||||||||||||
|
System agreement cost equalization
|
35,380 | - | - | 35,380 | ||||||||||||
|
Prepaid taxes
|
- | 209,984 | (209,984 | ) | - | |||||||||||
|
Prepayments and other
|
91,143 | 276,155 | 438 | 367,736 | ||||||||||||
|
TOTAL
|
2,206,270 | 2,445,199 | (1,447,969 | ) | 3,203,500 | |||||||||||
|
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
|
Investment in affiliates - at equity
|
1,097,271 | 45,490 | (1,097,442 | ) | 45,319 | |||||||||||
|
Decommissioning trust funds
|
1,760,376 | 2,255,001 | - | 4,015,377 | ||||||||||||
|
Non-utility property - at cost (less accumulated depreciation)
|
173,298 | 73,159 | 12,895 | 259,352 | ||||||||||||
|
Other
|
360,569 | 14,925 | 30,000 | 405,494 | ||||||||||||
|
TOTAL
|
3,391,514 | 2,388,575 | (1,054,547 | ) | 4,725,542 | |||||||||||
|
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
|
Electric
|
35,670,192 | 4,636,908 | 3,415 | 40,310,515 | ||||||||||||
|
Property under capital lease
|
812,214 | - | - | 812,214 | ||||||||||||
|
Natural gas
|
348,000 | 439 | - | 348,439 | ||||||||||||
|
Construction work in progress
|
1,206,209 | 375,692 | 682 | 1,582,583 | ||||||||||||
|
Nuclear fuel
|
857,775 | 647,917 | - | 1,505,692 | ||||||||||||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
38,894,390 | 5,660,956 | 4,097 | 44,559,443 | ||||||||||||
|
Less - accumulated depreciation and amortization
|
17,553,541 | 1,009,789 | 367 | 18,563,697 | ||||||||||||
|
PROPERTY, PLANT AND EQUIPMENT - NET
|
21,340,849 | 4,651,167 | 3,730 | 25,995,746 | ||||||||||||
|
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
|
Regulatory assets:
|
||||||||||||||||
|
Regulatory asset for income taxes - net
|
738,734 | - | - | 738,734 | ||||||||||||
|
Other regulatory assets
|
4,542,228 | - | - | 4,542,228 | ||||||||||||
|
Deferred fuel costs
|
238,428 | - | - | 238,428 | ||||||||||||
|
Goodwill
|
374,099 | 3,073 | - | 377,172 | ||||||||||||
|
Accumulated deferred income taxes
|
8,306 | 17,432 | 4,166 | 29,904 | ||||||||||||
|
Other
|
229,993 | 868,788 | (32,430 | ) | 1,066,351 | |||||||||||
|
TOTAL
|
6,131,788 | 889,293 | (28,264 | ) | 6,992,817 | |||||||||||
| - | ||||||||||||||||
|
TOTAL ASSETS
|
$ | 33,070,421 | $ | 10,374,234 | $ | (2,527,050 | ) | $ | 40,917,605 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
June 30, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
|
CURRENT LIABILITIES
|
||||||||||||||||
|
Currently maturing long-term debt
|
$ | 393,845 | $ | 26,544 | $ | - | $ | 420,389 | ||||||||
|
Notes payable and commercial paper:
|
||||||||||||||||
|
Associated companies
|
- | - | - | - | ||||||||||||
|
Other
|
103,716 | - | - | 103,716 | ||||||||||||
|
Account payable:
|
||||||||||||||||
|
Associated companies
|
18,501 | 8,580 | (27,081 | ) | - | |||||||||||
|
Other
|
825,408 | 209,903 | 523 | 1,035,834 | ||||||||||||
|
Customer deposits
|
357,402 | - | - | 357,402 | ||||||||||||
|
Taxes accrued
|
484,272 | - | (218,483 | ) | 265,789 | |||||||||||
|
Accumulated deferred income taxes
|
841 | 45,375 | 36,891 | 83,107 | ||||||||||||
|
Interest accrued
|
150,428 | 2,123 | 23,983 | 176,534 | ||||||||||||
|
Deferred fuel costs
|
185,914 | - | - | 185,914 | ||||||||||||
|
Obligations under capital leases
|
3,753 | - | - | 3,753 | ||||||||||||
|
Pension and other postretirement liabilities
|
40,019 | 6,322 | - | 46,341 | ||||||||||||
|
System agreement cost equalization
|
72,785 | - | - | 72,785 | ||||||||||||
|
Other
|
105,607 | 182,331 | 2,441 | 290,379 | ||||||||||||
|
TOTAL
|
2,742,491 | 481,178 | (181,726 | ) | 3,041,943 | |||||||||||
|
NON-CURRENT LIABILITIES
|
||||||||||||||||
|
Accumulated deferred income taxes and taxes accrued
|
6,610,086 | 918,147 | 435,243 | 7,963,476 | ||||||||||||
|
Accumulated deferred investment tax credits
|
280,041 | - | - | 280,041 | ||||||||||||
|
Obligations under capital leases
|
36,513 | - | - | 36,513 | ||||||||||||
|
Other regulatory liabilities
|
913,736 | - | - | 913,736 | ||||||||||||
|
Decommissioning and retirement cost liabilities
|
1,911,570 | 1,489,415 | - | 3,400,985 | ||||||||||||
|
Accumulated provisions
|
361,942 | 1,221 | 3,636 | 366,799 | ||||||||||||
|
Pension and other postretirement liabilities
|
2,410,950 | 685,855 | - | 3,096,805 | ||||||||||||
|
Long-term debt
|
8,891,395 | 108,388 | 2,969,152 | 11,968,935 | ||||||||||||
|
Other
|
664,333 | 614,958 | (741,425 | ) | 537,866 | |||||||||||
|
TOTAL
|
22,080,566 | 3,817,984 | 2,666,606 | 28,565,156 | ||||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
186,510 | - | - | 186,510 | ||||||||||||
|
EQUITY
|
||||||||||||||||
|
Common Shareholders' Equity:
|
||||||||||||||||
|
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
|
issued 254,752,788 shares in 2012
|
2,161,268 | 351,095 | (2,509,815 | ) | 2,548 | |||||||||||
|
Paid-in capital
|
2,417,634 | 1,472,045 | 1,466,796 | 5,356,475 | ||||||||||||
|
Retained earnings
|
3,682,251 | 4,055,916 | 1,628,054 | 9,366,221 | ||||||||||||
|
Accumulated other comprehensive income (loss)
|
(174,299 | ) | 196,016 | (97,314 | ) | (75,597 | ) | |||||||||
|
Less - treasury stock, at cost (77,562,145 shares in 2012)
|
120,000 | - | 5,499,651 | 5,619,651 | ||||||||||||
|
Total common shareholders' equity
|
7,966,854 | 6,075,072 | (5,011,930 | ) | 9,029,996 | |||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
94,000 | - | - | 94,000 | ||||||||||||
|
TOTAL
|
8,060,854 | 6,075,072 | (5,011,930 | ) | 9,123,996 | |||||||||||
|
TOTAL LIABILITIES AND EQUITY
|
$ | 33,070,421 | $ | 10,374,234 | $ | (2,527,050 | ) | $ | 40,917,605 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
ASSETS
|
||||||||||||||||
|
CURRENT ASSETS
|
||||||||||||||||
|
Cash and cash equivalents:
|
||||||||||||||||
|
Cash
|
$ | 77,711 | $ | 3,754 | $ | 3 | $ | 81,468 | ||||||||
|
Temporary cash investments
|
281,921 | 318,633 | 12,416 | 612,970 | ||||||||||||
|
Total cash and cash equivalents
|
359,632 | 322,387 | 12,419 | 694,438 | ||||||||||||
|
Securitization recovery trust account
|
50,304 | - | - | 50,304 | ||||||||||||
|
Notes receivable
|
- | 1,083,918 | (1,083,918 | ) | - | |||||||||||
|
Accounts receivable:
|
||||||||||||||||
|
Customer
|
403,321 | 165,237 | - | 568,558 | ||||||||||||
|
Allowance for doubtful accounts
|
(30,827 | ) | (332 | ) | - | (31,159 | ) | |||||||||
|
Associated companies
|
42,847 | 99,162 | (142,009 | ) | - | |||||||||||
|
Other
|
151,956 | 13,376 | 854 | 166,186 | ||||||||||||
|
Accrued unbilled revenues
|
297,265 | 1,018 | - | 298,283 | ||||||||||||
|
Total accounts receivable
|
864,562 | 278,461 | (141,155 | ) | 1,001,868 | |||||||||||
|
Deferred fuel costs
|
209,776 | - | - | 209,776 | ||||||||||||
|
Accumulated deferred income taxes
|
141,804 | 4,655 | (136,603 | ) | 9,856 | |||||||||||
|
Fuel inventory - at average cost
|
196,246 | 5,886 | - | 202,132 | ||||||||||||
|
Materials and supplies - at average cost
|
559,230 | 335,526 | - | 894,756 | ||||||||||||
|
Deferred nuclear refueling outage costs
|
103,788 | 127,243 | - | 231,031 | ||||||||||||
|
System agreement cost equalization
|
36,800 | - | - | 36,800 | ||||||||||||
|
Prepaid taxes
|
- | 79,165 | (79,165 | ) | - | |||||||||||
|
Prepayments and other
|
67,285 | 222,049 | 2,408 | 291,742 | ||||||||||||
|
TOTAL
|
2,589,427 | 2,459,290 | (1,426,014 | ) | 3,622,703 | |||||||||||
|
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
|
Investment in affiliates - at equity
|
1,147,271 | 44,764 | (1,147,159 | ) | 44,876 | |||||||||||
|
Decommissioning trust funds
|
1,639,951 | 2,148,080 | - | 3,788,031 | ||||||||||||
|
Non-utility property - at cost (less accumulated depreciation)
|
174,029 | 71,888 | 14,519 | 260,436 | ||||||||||||
|
Other
|
374,379 | 12,044 | 30,000 | 416,423 | ||||||||||||
|
TOTAL
|
3,335,630 | 2,276,776 | (1,102,640 | ) | 4,509,766 | |||||||||||
|
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
|
Electric
|
34,487,985 | 4,894,128 | 3,411 | 39,385,524 | ||||||||||||
|
Property under capital lease
|
809,449 | - | - | 809,449 | ||||||||||||
|
Natural gas
|
343,111 | 439 | - | 343,550 | ||||||||||||
|
Construction work in progress
|
1,420,163 | 358,902 | 658 | 1,779,723 | ||||||||||||
|
Nuclear fuel
|
801,972 | 744,195 | - | 1,546,167 | ||||||||||||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
37,862,680 | 5,997,664 | 4,069 | 43,864,413 | ||||||||||||
|
Less - accumulated depreciation and amortization
|
17,238,272 | 1,016,507 | 349 | 18,255,128 | ||||||||||||
|
PROPERTY, PLANT AND EQUIPMENT - NET
|
20,624,408 | 4,981,157 | 3,720 | 25,609,285 | ||||||||||||
|
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
|
Regulatory assets:
|
||||||||||||||||
|
Regulatory asset for income taxes - net
|
799,006 | - | - | 799,006 | ||||||||||||
|
Other regulatory assets
|
4,636,871 | - | - | 4,636,871 | ||||||||||||
|
Deferred fuel costs
|
172,202 | - | - | 172,202 | ||||||||||||
|
Goodwill
|
374,099 | 3,073 | - | 377,172 | ||||||||||||
|
Accumulated deferred income taxes
|
4,313 | 9,232 | 5,458 | 19,003 | ||||||||||||
|
Other
|
198,593 | 803,552 | (46,454 | ) | 955,691 | |||||||||||
|
TOTAL
|
6,185,084 | 815,857 | (40,996 | ) | 6,959,945 | |||||||||||
| - | ||||||||||||||||
|
TOTAL ASSETS
|
$ | 32,734,549 | $ | 10,533,080 | $ | (2,565,930 | ) | $ | 40,701,699 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
|
CURRENT LIABILITIES
|
||||||||||||||||
|
Currently maturing long-term debt
|
$ | 245,472 | $ | 27,261 | $ | 1,920,000 | $ | 2,192,733 | ||||||||
|
Notes payable and commercial paper:
|
||||||||||||||||
|
Associated companies
|
- | 138,862 | (138,862 | ) | - | |||||||||||
|
Other
|
108,331 | - | - | 108,331 | ||||||||||||
|
Account payable:
|
||||||||||||||||
|
Associated companies
|
14,839 | 36,878 | (51,717 | ) | - | |||||||||||
|
Other
|
787,516 | 280,663 | 917 | 1,069,096 | ||||||||||||
|
Customer deposits
|
351,741 | - | - | 351,741 | ||||||||||||
|
Taxes accrued
|
569,641 | - | (291,406 | ) | 278,235 | |||||||||||
|
Accumulated deferred income taxes
|
54,592 | 42,613 | 2,724 | 99,929 | ||||||||||||
|
Interest accrued
|
169,710 | 490 | 13,312 | 183,512 | ||||||||||||
|
Deferred fuel costs
|
255,839 | - | - | 255,839 | ||||||||||||
|
Obligations under capital leases
|
3,631 | - | - | 3,631 | ||||||||||||
|
Pension and other postretirement liabilities
|
37,858 | 6,173 | - | 44,031 | ||||||||||||
|
System agreement cost equalization
|
80,090 | - | - | 80,090 | ||||||||||||
|
Other
|
114,083 | 158,277 | 11,171 | 283,531 | ||||||||||||
|
TOTAL
|
2,793,343 | 691,217 | 1,466,139 | 4,950,699 | ||||||||||||
|
NON-CURRENT LIABILITIES
|
||||||||||||||||
|
Accumulated deferred income taxes and taxes accrued
|
6,680,438 | 824,393 | 591,621 | 8,096,452 | ||||||||||||
|
Accumulated deferred investment tax credits
|
284,747 | - | - | 284,747 | ||||||||||||
|
Obligations under capital leases
|
38,421 | - | - | 38,421 | ||||||||||||
|
Other regulatory liabilities
|
737,403 | - | (9,210 | ) | 728,193 | |||||||||||
|
Decommissioning and retirement cost liabilities
|
1,803,665 | 1,492,905 | - | 3,296,570 | ||||||||||||
|
Accumulated provisions
|
379,331 | 1,849 | 4,332 | 385,512 | ||||||||||||
|
Pension and other postretirement liabilities
|
2,463,493 | 670,164 | - | 3,133,657 | ||||||||||||
|
Long-term debt
|
8,936,342 | 107,744 | 999,627 | 10,043,713 | ||||||||||||
|
Other
|
651,919 | 639,552 | (789,517 | ) | 501,954 | |||||||||||
|
TOTAL
|
21,975,759 | 3,736,607 | 796,853 | 26,509,219 | ||||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
186,510 | 55,399 | (55,398 | ) | 186,511 | |||||||||||
|
EQUITY
|
||||||||||||||||
|
Common Shareholders' Equity:
|
||||||||||||||||
|
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
|
issued 254,752,788 shares in 2011
|
2,161,268 | 327,937 | (2,486,657 | ) | 2,548 | |||||||||||
|
Paid-in capital
|
2,416,634 | 1,499,406 | 1,444,642 | 5,360,682 | ||||||||||||
|
Retained earnings
|
3,417,829 | 4,118,292 | 1,910,839 | 9,446,960 | ||||||||||||
|
Accumulated other comprehensive income (loss)
|
(190,794 | ) | 104,222 | (81,880 | ) | (168,452 | ) | |||||||||
|
Less - treasury stock, at cost (78,396,988 shares in 2011)
|
120,000 | - | 5,560,468 | 5,680,468 | ||||||||||||
|
Total common shareholders' equity
|
7,684,937 | 6,049,857 | (4,773,524 | ) | 8,961,270 | |||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
94,000 | - | - | 94,000 | ||||||||||||
|
TOTAL
|
7,778,937 | 6,049,857 | (4,773,524 | ) | 9,055,270 | |||||||||||
|
TOTAL LIABILITIES AND EQUITY
|
$ | 32,734,549 | $ | 10,533,080 | $ | (2,565,930 | ) | $ | 40,701,699 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
June 30, 2012 vs December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
ASSETS
|
||||||||||||||||
|
CURRENT ASSETS
|
||||||||||||||||
|
Cash and cash equivalents:
|
||||||||||||||||
|
Cash
|
$ | 5,689 | $ | 3,121 | $ | 1 | $ | 8,811 | ||||||||
|
Temporary cash investments
|
(191,922 | ) | (219,735 | ) | (8,199 | ) | (419,856 | ) | ||||||||
|
Total cash and cash equivalents
|
(186,233 | ) | (216,614 | ) | (8,198 | ) | (411,045 | ) | ||||||||
|
Securitization recovery trust account
|
(12,876 | ) | - | - | (12,876 | ) | ||||||||||
|
Notes receivable
|
- | 9,211 | (9,211 | ) | - | |||||||||||
|
Accounts receivable:
|
||||||||||||||||
|
Customer
|
20,129 | (27,763 | ) | - | (7,634 | ) | ||||||||||
|
Allowance for doubtful accounts
|
804 | 129 | - | 933 | ||||||||||||
|
Associated companies
|
(16,072 | ) | 24,056 | (7,984 | ) | - | ||||||||||
|
Other
|
(17,245 | ) | (934 | ) | (376 | ) | (18,555 | ) | ||||||||
|
Accrued unbilled revenues
|
61,525 | (687 | ) | - | 60,838 | |||||||||||
|
Total accounts receivable
|
49,141 | (5,199 | ) | (8,360 | ) | 35,582 | ||||||||||
|
Deferred fuel costs
|
(142,060 | ) | - | - | (142,060 | ) | ||||||||||
|
Accumulated deferred income taxes
|
(137,467 | ) | (4,655 | ) | 136,603 | (5,519 | ) | |||||||||
|
Fuel inventory - at average cost
|
17,596 | 1,626 | - | 19,222 | ||||||||||||
|
Materials and supplies - at average cost
|
9,545 | 8,583 | - | 18,128 | ||||||||||||
|
Deferred nuclear refueling outage costs
|
(3,241 | ) | 8,032 | - | 4,791 | |||||||||||
|
System agreement cost equalization
|
(1,420 | ) | - | - | (1,420 | ) | ||||||||||
|
Prepaid taxes
|
- | 130,819 | (130,819 | ) | - | |||||||||||
|
Prepayments and other
|
23,858 | 54,106 | (1,970 | ) | 75,994 | |||||||||||
|
TOTAL
|
(383,157 | ) | (14,091 | ) | (21,955 | ) | (419,203 | ) | ||||||||
|
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
|
Investment in affiliates - at equity
|
(50,000 | ) | 726 | 49,717 | 443 | |||||||||||
|
Decommissioning trust funds
|
120,425 | 106,921 | - | 227,346 | ||||||||||||
|
Non-utility property - at cost (less accumulated depreciation)
|
(731 | ) | 1,271 | (1,624 | ) | (1,084 | ) | |||||||||
|
Other
|
(13,810 | ) | 2,881 | - | (10,929 | ) | ||||||||||
|
TOTAL
|
55,884 | 111,799 | 48,093 | 215,776 | ||||||||||||
|
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
|
Electric
|
1,182,207 | (257,220 | ) | 4 | 924,991 | |||||||||||
|
Property under capital lease
|
2,765 | - | - | 2,765 | ||||||||||||
|
Natural gas
|
4,889 | - | - | 4,889 | ||||||||||||
|
Construction work in progress
|
(213,954 | ) | 16,790 | 24 | (197,140 | ) | ||||||||||
|
Nuclear fuel
|
55,803 | (96,278 | ) | - | (40,475 | ) | ||||||||||
|
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
1,031,710 | (336,708 | ) | 28 | 695,030 | |||||||||||
|
Less - accumulated depreciation and amortization
|
315,269 | (6,718 | ) | 18 | 308,569 | |||||||||||
|
PROPERTY, PLANT AND EQUIPMENT - NET
|
716,441 | (329,990 | ) | 10 | 386,461 | |||||||||||
|
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
|
Regulatory assets:
|
||||||||||||||||
|
Regulatory asset for income taxes - net
|
(60,272 | ) | - | - | (60,272 | ) | ||||||||||
|
Other regulatory assets
|
(94,643 | ) | - | - | (94,643 | ) | ||||||||||
|
Deferred fuel costs
|
66,226 | - | - | 66,226 | ||||||||||||
|
Goodwill
|
- | - | - | - | ||||||||||||
|
Accumulated deferred income taxes
|
3,993 | 8,200 | (1,292 | ) | 10,901 | |||||||||||
|
Other
|
31,400 | 65,236 | 14,024 | 110,660 | ||||||||||||
|
TOTAL
|
(53,296 | ) | 73,436 | 12,732 | 32,872 | |||||||||||
|
TOTAL ASSETS
|
$ | 335,872 | $ | (158,846 | ) | $ | 38,880 | $ | 215,906 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Balance Sheet
|
||||||||||||||||
|
June 30, 2012 vs December 31, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
|
CURRENT LIABILITIES
|
||||||||||||||||
|
Currently maturing long-term debt
|
$ | 148,373 | $ | (717 | ) | $ | (1,920,000 | ) | $ | (1,772,344 | ) | |||||
|
Notes payable and commercial paper:
|
||||||||||||||||
|
Associated companies
|
- | (138,862 | ) | 138,862 | - | |||||||||||
|
Other
|
(4,615 | ) | - | - | (4,615 | ) | ||||||||||
|
Account payable:
|
||||||||||||||||
|
Associated companies
|
3,662 | (28,298 | ) | 24,636 | - | |||||||||||
|
Other
|
37,892 | (70,760 | ) | (394 | ) | (33,262 | ) | |||||||||
|
Customer deposits
|
5,661 | - | - | 5,661 | ||||||||||||
|
Taxes accrued
|
(85,369 | ) | - | 72,923 | (12,446 | ) | ||||||||||
|
Accumulated deferred income taxes
|
(53,751 | ) | 2,762 | 34,167 | (16,822 | ) | ||||||||||
|
Interest accrued
|
(19,282 | ) | 1,633 | 10,671 | (6,978 | ) | ||||||||||
|
Deferred fuel costs
|
(69,925 | ) | - | - | (69,925 | ) | ||||||||||
|
Obligations under capital leases
|
122 | - | - | 122 | ||||||||||||
|
Pension and other postretirement liabilities
|
2,161 | 149 | - | 2,310 | ||||||||||||
|
System agreement cost equalization
|
(7,305 | ) | - | - | (7,305 | ) | ||||||||||
|
Other
|
(8,476 | ) | 24,054 | (8,730 | ) | 6,848 | ||||||||||
|
TOTAL
|
(50,852 | ) | (210,039 | ) | (1,647,865 | ) | (1,908,756 | ) | ||||||||
|
NON-CURRENT LIABILITIES
|
||||||||||||||||
|
Accumulated deferred income taxes and taxes accrued
|
(70,352 | ) | 93,754 | (156,378 | ) | (132,976 | ) | |||||||||
|
Accumulated deferred investment tax credits
|
(4,706 | ) | - | - | (4,706 | ) | ||||||||||
|
Obligations under capital leases
|
(1,908 | ) | - | - | (1,908 | ) | ||||||||||
|
Other regulatory liabilities
|
176,333 | - | 9,210 | 185,543 | ||||||||||||
|
Decommissioning and retirement cost liabilities
|
107,905 | (3,490 | ) | - | 104,415 | |||||||||||
|
Accumulated provisions
|
(17,389 | ) | (628 | ) | (696 | ) | (18,713 | ) | ||||||||
|
Pension and other postretirement liabilities
|
(52,543 | ) | 15,691 | - | (36,852 | ) | ||||||||||
|
Long-term debt
|
(44,947 | ) | 644 | 1,969,525 | 1,925,222 | |||||||||||
|
Other
|
12,414 | (24,594 | ) | 48,091 | 35,911 | |||||||||||
|
TOTAL
|
104,807 | 81,377 | 1,869,752 | 2,055,936 | ||||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
- | (55,399 | ) | 55,399 | - | |||||||||||
|
EQUITY
|
||||||||||||||||
|
Common Shareholders' Equity:
|
||||||||||||||||
|
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||||||||||
|
issued 254,752,788 shares in 2012 and in 2011
|
- | 23,158 | (23,158 | ) | - | |||||||||||
|
Paid-in capital
|
1,000 | (27,361 | ) | 22,154 | (4,207 | ) | ||||||||||
|
Retained earnings
|
264,422 | (62,376 | ) | (282,785 | ) | (80,739 | ) | |||||||||
|
Accumulated other comprehensive income (loss)
|
16,495 | 91,794 | (15,434 | ) | 92,855 | |||||||||||
|
Less - treasury stock, at cost
|
- | - | (60,817 | ) | (60,817 | ) | ||||||||||
|
Total common shareholders' equity
|
281,917 | 25,215 | (238,406 | ) | 68,726 | |||||||||||
|
Subsidiaries' preferred stock without sinking fund
|
- | - | - | - | ||||||||||||
|
TOTAL
|
281,917 | 25,215 | (238,406 | ) | 68,726 | |||||||||||
|
TOTAL LIABILITIES AND EQUITY
|
$ | 335,872 | $ | (158,846 | ) | $ | 38,880 | $ | 215,906 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Three Months Ended June 30, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 1,935,697 | $ | - | $ | (1,147 | ) | $ | 1,934,550 | |||||||
|
Natural gas
|
23,879 | - | - | 23,879 | ||||||||||||
|
Competitive businesses
|
- | 567,674 | (7,503 | ) | 560,171 | |||||||||||
|
Total
|
1,959,576 | 567,674 | (8,650 | ) | 2,518,600 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
359,790 | 78,045 | (678 | ) | 437,157 | |||||||||||
|
Purchased power
|
310,357 | 45,810 | (10,869 | ) | 345,298 | |||||||||||
|
Nuclear refueling outage expenses
|
25,097 | 32,725 | - | 57,822 | ||||||||||||
|
Other operation and maintenance
|
521,951 | 248,183 | 2,747 | 772,881 | ||||||||||||
|
Decommissioning
|
28,688 | (16,746 | ) | - | 11,942 | |||||||||||
|
Taxes other than income taxes
|
107,141 | 30,646 | 324 | 138,111 | ||||||||||||
|
Depreciation and amortization
|
225,556 | 48,070 | 1,129 | 274,755 | ||||||||||||
|
Other regulatory charges (credits) - net
|
137,650 | - | - | 137,650 | ||||||||||||
|
Total
|
1,716,230 | 466,733 | (7,347 | ) | 2,175,616 | |||||||||||
|
OPERATING INCOME
|
243,346 | 100,941 | (1,303 | ) | 342,984 | |||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
28,282 | - | - | 28,282 | ||||||||||||
|
Interest and investment income
|
34,018 | 37,141 | (41,874 | ) | 29,285 | |||||||||||
|
Miscellaneous - net
|
(6,910 | ) | (4,741 | ) | (1,384 | ) | (13,036 | ) | ||||||||
|
Total
|
55,390 | 32,400 | (43,258 | ) | 44,531 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
125,155 | 5,806 | 18,655 | 149,616 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(10,483 | ) | - | - | (10,483 | ) | ||||||||||
|
Total
|
114,672 | 5,806 | 18,655 | 139,133 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
184,064 | 127,535 | (63,216 | ) | 248,382 | |||||||||||
|
Income taxes
|
(124,461 | ) | 46,218 | (43,957 | ) | (122,201 | ) | |||||||||
|
CONSOLIDATED NET INCOME
|
308,525 | 81,317 | (19,259 | ) | 370,583 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
4,332 | - | 1,250 | 5,582 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 304,193 | $ | 81,317 | $ | (20,509 | ) | $ | 365,001 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 1.72 | $ | 0.46 | $ | (0.12 | ) | $ | 2.06 | |||||||
|
DILUTED
|
$ | 1.72 | $ | 0.46 | $ | (0.12 | ) | $ | 2.06 | |||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
177,166,519 | |||||||||||||||
|
DILUTED
|
177,565,351 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Three Months Ended June 30, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 2,212,584 | $ | - | $ | (546 | ) | $ | 2,212,038 | |||||||
|
Natural gas
|
28,891 | - | - | 28,891 | ||||||||||||
|
Competitive businesses
|
- | 568,076 | (5,726 | ) | 562,350 | |||||||||||
|
Total
|
2,241,475 | 568,076 | (6,272 | ) | 2,803,279 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
486,691 | 76,793 | (151 | ) | 563,333 | |||||||||||
|
Purchased power
|
444,110 | 17,225 | (10,109 | ) | 451,227 | |||||||||||
|
Nuclear refueling outage expenses
|
25,355 | 37,612 | - | 62,966 | ||||||||||||
|
Other operation and maintenance
|
484,627 | 231,351 | (3,482 | ) | 712,496 | |||||||||||
|
Decommissioning
|
26,879 | 28,618 | - | 55,497 | ||||||||||||
|
Taxes other than income taxes
|
104,717 | 24,088 | 411 | 129,215 | ||||||||||||
|
Depreciation and amortization
|
218,877 | 44,177 | 1,152 | 264,206 | ||||||||||||
|
Other regulatory charges (credits) - net
|
5,601 | - | - | 5,601 | ||||||||||||
|
Total
|
1,796,857 | 459,864 | (12,179 | ) | 2,244,541 | |||||||||||
|
OPERATING INCOME
|
444,618 | 108,212 | 5,907 | 558,738 | ||||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
20,753 | - | - | 20,753 | ||||||||||||
|
Interest and investment income
|
44,083 | 32,986 | (41,147 | ) | 35,921 | |||||||||||
|
Miscellaneous - net
|
(5,500 | ) | (6,682 | ) | (4,779 | ) | (16,962 | ) | ||||||||
|
Total
|
59,336 | 26,304 | (45,926 | ) | 39,712 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
121,327 | 4,636 | 10,087 | 136,049 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(9,150 | ) | - | - | (9,150 | ) | ||||||||||
|
Total
|
112,177 | 4,636 | 10,087 | 126,899 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
391,777 | 129,880 | (50,106 | ) | 471,551 | |||||||||||
|
Income taxes
|
139,036 | 64,324 | (52,407 | ) | 150,953 | |||||||||||
|
CONSOLIDATED NET INCOME
|
252,741 | 65,556 | 2,301 | 320,598 | ||||||||||||
|
Preferred dividend requirements of subsidiaries
|
4,332 | 683 | - | 5,015 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 248,409 | $ | 64,873 | $ | 2,301 | $ | 315,583 | ||||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 1.40 | $ | 0.36 | $ | 0.01 | $ | 1.77 | ||||||||
|
DILUTED
|
$ | 1.39 | $ | 0.36 | $ | 0.01 | $ | 1.76 | ||||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
177,808,890 | |||||||||||||||
|
DILUTED
|
178,925,180 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Three Months Ended June 30, 2012 vs. 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | (276,887 | ) | $ | - | $ | (601 | ) | $ | (277,488 | ) | |||||
|
Natural gas
|
(5,012 | ) | - | - | (5,012 | ) | ||||||||||
|
Competitive businesses
|
- | (402 | ) | (1,777 | ) | (2,179 | ) | |||||||||
|
Total
|
(281,899 | ) | (402 | ) | (2,378 | ) | (284,679 | ) | ||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
(126,901 | ) | 1,252 | (527 | ) | (126,176 | ) | |||||||||
|
Purchased power
|
(133,753 | ) | 28,585 | (760 | ) | (105,929 | ) | |||||||||
|
Nuclear refueling outage expenses
|
(258 | ) | (4,887 | ) | - | (5,144 | ) | |||||||||
|
Other operation and maintenance
|
37,324 | 16,832 | 6,229 | 60,385 | ||||||||||||
|
Decommissioning
|
1,809 | (45,364 | ) | - | (43,555 | ) | ||||||||||
|
Taxes other than income taxes
|
2,424 | 6,558 | (87 | ) | 8,896 | |||||||||||
|
Depreciation and amortization
|
6,679 | 3,893 | (23 | ) | 10,549 | |||||||||||
|
Other regulatory charges (credits )- net
|
132,049 | - | - | 132,049 | ||||||||||||
|
Total
|
(80,627 | ) | 6,869 | 4,832 | (68,925 | ) | ||||||||||
|
OPERATING INCOME
|
(201,272 | ) | (7,271 | ) | (7,210 | ) | (215,754 | ) | ||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
7,529 | - | - | 7,529 | ||||||||||||
|
Interest and investment income
|
(10,065 | ) | 4,155 | (727 | ) | (6,636 | ) | |||||||||
|
Miscellaneous - net
|
(1,410 | ) | 1,941 | 3,395 | 3,926 | |||||||||||
|
Total
|
(3,946 | ) | 6,096 | 2,668 | 4,819 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
3,828 | 1,170 | 8,568 | 13,567 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(1,333 | ) | - | - | (1,333 | ) | ||||||||||
|
Total
|
2,495 | 1,170 | 8,568 | 12,234 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
(207,713 | ) | (2,345 | ) | (13,110 | ) | (223,169 | ) | ||||||||
|
Income taxes
|
(263,497 | ) | (18,106 | ) | 8,450 | (273,154 | ) | |||||||||
|
CONSOLIDATED NET INCOME
|
55,784 | 15,761 | (21,560 | ) | 49,985 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
- | (683 | ) | 1,250 | 567 | |||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 55,784 | $ | 16,444 | $ | (22,810 | ) | $ | 49,418 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 0.32 | $ | 0.10 | $ | (0.13 | ) | $ | 0.29 | |||||||
|
DILUTED
|
$ | 0.33 | $ | 0.10 | $ | (0.13 | ) | $ | 0.30 | |||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Six Months Ended June 30, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 3,721,330 | $ | - | $ | (1,938 | ) | $ | 3,719,392 | |||||||
|
Natural gas
|
69,886 | - | - | 69,886 | ||||||||||||
|
Competitive businesses
|
- | 1,127,925 | (14,943 | ) | 1,112,982 | |||||||||||
|
Total
|
3,791,216 | 1,127,925 | (16,881 | ) | 4,902,260 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
804,228 | 172,747 | (981 | ) | 975,994 | |||||||||||
|
Purchased power
|
591,548 | 59,685 | (20,969 | ) | 630,264 | |||||||||||
|
Nuclear refueling outage expenses
|
51,799 | 69,907 | - | 121,706 | ||||||||||||
|
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
|
Other operation and maintenance
|
1,012,176 | 480,923 | 1,418 | 1,494,517 | ||||||||||||
|
Decommissioning
|
56,919 | 12,926 | - | 69,845 | ||||||||||||
|
Taxes other than income taxes
|
214,240 | 60,414 | 626 | 275,280 | ||||||||||||
|
Depreciation and amortization
|
453,642 | 99,141 | 2,188 | 554,971 | ||||||||||||
|
Other regulatory charges (credits) - net
|
138,032 | - | - | 138,032 | ||||||||||||
|
Total
|
3,322,584 | 1,311,267 | (17,718 | ) | 4,616,133 | |||||||||||
|
OPERATING INCOME
|
468,632 | (183,342 | ) | 837 | 286,127 | |||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
52,590 | - | - | 52,590 | ||||||||||||
|
Interest and investment income
|
77,291 | 77,435 | (84,450 | ) | 70,276 | |||||||||||
|
Miscellaneous - net
|
(14,773 | ) | (12,524 | ) | (3,728 | ) | (31,025 | ) | ||||||||
|
Total
|
115,108 | 64,911 | (88,178 | ) | 91,841 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
252,630 | 12,954 | 30,777 | 296,361 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(19,874 | ) | - | - | (19,874 | ) | ||||||||||
|
Total
|
232,756 | 12,954 | 30,777 | 276,487 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
350,984 | (131,385 | ) | (118,118 | ) | 101,481 | ||||||||||
|
Income taxes
|
(24,754 | ) | (44,189 | ) | (53,420 | ) | (122,363 | ) | ||||||||
|
CONSOLIDATED NET INCOME
|
375,738 | (87,196 | ) | (64,698 | ) | 223,844 | ||||||||||
|
Preferred dividend requirements of subsidiaries
|
8,665 | - | 1,861 | 10,526 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 367,073 | $ | (87,196 | ) | $ | (66,559 | ) | $ | 213,318 | ||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 2.08 | $ | (0.49 | ) | $ | (0.38 | ) | $ | 1.21 | ||||||
|
DILUTED
|
$ | 2.07 | $ | (0.49 | ) | $ | (0.38 | ) | $ | 1.20 | ||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
177,015,941 | |||||||||||||||
|
DILUTED
|
177,470,486 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Six Months Ended June 30, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 4,079,079 | $ | - | $ | (1,143 | ) | $ | 4,077,936 | |||||||
|
Natural gas
|
100,014 | - | - | 100,014 | ||||||||||||
|
Competitive businesses
|
- | 1,178,223 | (11,685 | ) | 1,166,538 | |||||||||||
|
Total
|
4,179,093 | 1,178,223 | (12,828 | ) | 5,344,488 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
924,847 | 146,515 | (336 | ) | 1,071,026 | |||||||||||
|
Purchased power
|
800,654 | 32,994 | (19,803 | ) | 813,845 | |||||||||||
|
Nuclear refueling outage expenses
|
51,831 | 75,120 | - | 126,951 | ||||||||||||
|
Asset impairment
|
- | - | - | - | ||||||||||||
|
Other operation and maintenance
|
932,827 | 440,494 | (5,076 | ) | 1,368,245 | |||||||||||
|
Decommissioning
|
54,041 | 56,721 | - | 110,762 | ||||||||||||
|
Taxes other than income taxes
|
208,308 | 45,500 | 641 | 254,449 | ||||||||||||
|
Depreciation and amortization
|
439,482 | 87,408 | 2,200 | 529,090 | ||||||||||||
|
Other regulatory charges (credits) - net
|
491 | - | - | 491 | ||||||||||||
|
Total
|
3,412,481 | 884,752 | (22,374 | ) | 4,274,859 | |||||||||||
|
OPERATING INCOME
|
766,612 | 293,471 | 9,546 | 1,069,629 | ||||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
38,042 | - | - | 38,042 | ||||||||||||
|
Interest and investment income
|
80,677 | 63,883 | (81,892 | ) | 62,668 | |||||||||||
|
Miscellaneous - net
|
(10,001 | ) | (9,919 | ) | (6,440 | ) | (26,360 | ) | ||||||||
|
Total
|
108,718 | 53,964 | (88,332 | ) | 74,350 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
242,379 | 9,381 | 20,423 | 272,183 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(17,684 | ) | - | - | (17,684 | ) | ||||||||||
|
Total
|
224,695 | 9,381 | 20,423 | 254,499 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
650,635 | 338,054 | (99,209 | ) | 889,480 | |||||||||||
|
Income taxes
|
229,240 | 149,265 | (63,302 | ) | 315,203 | |||||||||||
|
CONSOLIDATED NET INCOME
|
421,395 | 188,789 | (35,907 | ) | 574,277 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
8,665 | 1,366 | - | 10,031 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 412,730 | $ | 187,423 | $ | (35,907 | ) | $ | 564,246 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 2.31 | $ | 1.05 | $ | (0.20 | ) | $ | 3.16 | |||||||
|
DILUTED
|
$ | 2.30 | $ | 1.04 | $ | (0.20 | ) | $ | 3.14 | |||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
178,318,784 | |||||||||||||||
|
DILUTED
|
179,502,551 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Six Months Ended June 30, 2012 vs. 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | (357,749 | ) | $ | - | $ | (795 | ) | $ | (358,544 | ) | |||||
|
Natural gas
|
(30,128 | ) | - | - | (30,128 | ) | ||||||||||
|
Competitive businesses
|
- | (50,298 | ) | (3,258 | ) | (53,556 | ) | |||||||||
|
Total
|
(387,877 | ) | (50,298 | ) | (4,053 | ) | (442,228 | ) | ||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
(120,619 | ) | 26,232 | (645 | ) | (95,032 | ) | |||||||||
|
Purchased power
|
(209,106 | ) | 26,691 | (1,166 | ) | (183,581 | ) | |||||||||
|
Nuclear refueling outage expenses
|
(32 | ) | (5,213 | ) | - | (5,245 | ) | |||||||||
|
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
|
Other operation and maintenance
|
79,349 | 40,429 | 6,494 | 126,272 | ||||||||||||
|
Decommissioning
|
2,878 | (43,795 | ) | - | (40,917 | ) | ||||||||||
|
Taxes other than income taxes
|
5,932 | 14,914 | (15 | ) | 20,831 | |||||||||||
|
Depreciation and amortization
|
14,160 | 11,733 | (12 | ) | 25,881 | |||||||||||
|
Other regulatory charges (credits )- net
|
137,541 | - | - | 137,541 | ||||||||||||
|
Total
|
(89,897 | ) | 426,515 | 4,656 | 341,274 | |||||||||||
|
OPERATING INCOME
|
(297,980 | ) | (476,813 | ) | (8,709 | ) | (783,502 | ) | ||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
14,548 | - | - | 14,548 | ||||||||||||
|
Interest and investment income
|
(3,386 | ) | 13,552 | (2,558 | ) | 7,608 | ||||||||||
|
Miscellaneous - net
|
(4,772 | ) | (2,605 | ) | 2,712 | (4,665 | ) | |||||||||
|
Total
|
6,390 | 10,947 | 154 | 17,491 | ||||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
10,251 | 3,573 | 10,354 | 24,178 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(2,190 | ) | - | - | (2,190 | ) | ||||||||||
|
Total
|
8,061 | 3,573 | 10,354 | 21,988 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
(299,651 | ) | (469,439 | ) | (18,909 | ) | (787,999 | ) | ||||||||
|
Income taxes
|
(253,994 | ) | (193,454 | ) | 9,882 | (437,566 | ) | |||||||||
|
CONSOLIDATED NET INCOME
|
(45,657 | ) | (275,985 | ) | (28,791 | ) | (350,433 | ) | ||||||||
|
Preferred dividend requirements of subsidiaries
|
- | (1,366 | ) | 1,861 | 495 | |||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | (45,657 | ) | $ | (274,619 | ) | $ | (30,652 | ) | $ | (350,928 | ) | ||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | (0.23 | ) | $ | (1.54 | ) | $ | (0.18 | ) | $ | (1.95 | ) | ||||
|
DILUTED
|
$ | (0.23 | ) | $ | (1.53 | ) | $ | (0.18 | ) | $ | (1.94 | ) | ||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Twelve Months Ended June 30, 2012
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 8,318,259 | $ | - | $ | (3,287 | ) | $ | 8,314,972 | |||||||
|
Natural gas
|
135,691 | - | - | 135,691 | ||||||||||||
|
Competitive businesses
|
- | 2,363,475 | (27,293 | ) | 2,336,182 | |||||||||||
|
Total
|
8,453,950 | 2,363,475 | (30,580 | ) | 10,786,845 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
2,062,939 | 336,148 | (1,404 | ) | 2,397,683 | |||||||||||
|
Purchased power
|
1,339,170 | 85,663 | (43,447 | ) | 1,381,385 | |||||||||||
|
Nuclear refueling outage expenses
|
104,969 | 145,403 | - | 250,373 | ||||||||||||
|
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
|
Other operation and maintenance
|
2,029,914 | 945,895 | 18,222 | 2,994,031 | ||||||||||||
|
Decommissioning
|
112,022 | 37,656 | - | 149,678 | ||||||||||||
|
Taxes other than income taxes
|
437,551 | 117,875 | 1,431 | 556,857 | ||||||||||||
|
Depreciation and amortization
|
932,613 | 190,922 | 4,548 | 1,128,082 | ||||||||||||
|
Other regulatory charges (credits) - net
|
343,500 | - | - | 343,500 | ||||||||||||
|
Total
|
7,362,678 | 2,215,086 | (20,650 | ) | 9,557,113 | |||||||||||
|
Gain on sale of business
|
- | - | - | - | ||||||||||||
|
OPERATING INCOME
|
1,091,272 | 148,389 | (9,930 | ) | 1,229,732 | |||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
98,852 | - | - | 98,852 | ||||||||||||
|
Interest and investment income
|
155,351 | 149,933 | (168,680 | ) | 136,603 | |||||||||||
|
Miscellaneous - net
|
(30,149 | ) | (26,242 | ) | (7,544 | ) | (63,935 | ) | ||||||||
|
Total
|
224,054 | 123,691 | (176,224 | ) | 171,520 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
503,883 | 24,207 | 47,609 | 575,699 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(40,083 | ) | - | - | (40,083 | ) | ||||||||||
|
Total
|
463,800 | 24,207 | 47,609 | 535,616 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
851,526 | 247,873 | (233,763 | ) | 865,636 | |||||||||||
|
Income taxes
|
(226,684 | ) | 32,007 | 43,374 | (151,303 | ) | ||||||||||
|
CONSOLIDATED NET INCOME
|
1,078,210 | 215,866 | (277,137 | ) | 1,016,939 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
17,329 | 1,879 | 2,220 | 21,428 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 1,060,881 | $ | 213,987 | $ | (279,357 | ) | $ | 995,511 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 6.00 | $ | 1.21 | $ | (1.58 | ) | $ | 5.63 | |||||||
|
DILUTED
|
$ | 5.97 | $ | 1.21 | $ | (1.57 | ) | $ | 5.61 | |||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
176,784,774 | |||||||||||||||
|
DILUTED
|
177,582,171 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Twelve Months Ended June 30, 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | 8,599,979 | $ | - | $ | (2,444 | ) | $ | 8,597,535 | |||||||
|
Natural gas
|
170,509 | - | - | 170,509 | ||||||||||||
|
Competitive businesses
|
- | 2,461,913 | (20,189 | ) | 2,441,724 | |||||||||||
|
Total
|
8,770,488 | 2,461,913 | (22,633 | ) | 11,209,768 | |||||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
2,107,555 | 292,830 | (991 | ) | 2,399,394 | |||||||||||
|
Purchased power
|
1,553,679 | 64,100 | (35,879 | ) | 1,581,900 | |||||||||||
|
Nuclear refueling outage expenses
|
105,360 | 151,204 | - | 256,564 | ||||||||||||
|
Asset impairment
|
- | - | - | - | ||||||||||||
|
Other operation and maintenance
|
1,975,593 | 977,191 | (17,831 | ) | 2,934,952 | |||||||||||
|
Decommissioning
|
107,034 | 111,421 | - | 218,455 | ||||||||||||
|
Taxes other than income taxes
|
429,625 | 95,969 | 774 | 526,368 | ||||||||||||
|
Depreciation and amortization
|
897,732 | 171,881 | 4,601 | 1,074,214 | ||||||||||||
|
Other regulatory charges (credits) - net
|
28,042 | - | - | 28,042 | ||||||||||||
|
Total
|
7,204,620 | 1,864,596 | (49,326 | ) | 9,019,889 | |||||||||||
|
Gain on sale of business
|
- | 44,173 | - | 44,173 | ||||||||||||
|
OPERATING INCOME
|
1,565,868 | 641,490 | 26,693 | 2,234,052 | ||||||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
66,497 | - | - | 66,497 | ||||||||||||
|
Interest and investment income
|
190,632 | 145,354 | (172,406 | ) | 163,580 | |||||||||||
|
Miscellaneous - net
|
(25,818 | ) | (20,681 | ) | (10,682 | ) | (57,181 | ) | ||||||||
|
Total
|
231,311 | 124,673 | (183,088 | ) | 172,896 | |||||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
501,097 | 20,025 | 33,829 | 554,951 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(34,338 | ) | - | - | (34,338 | ) | ||||||||||
|
Total
|
466,759 | 20,025 | 33,829 | 520,613 | ||||||||||||
|
INCOME BEFORE INCOME TAXES
|
1,330,420 | 746,138 | (190,224 | ) | 1,886,335 | |||||||||||
|
Income taxes
|
452,451 | 263,024 | (134,625 | ) | 580,850 | |||||||||||
|
CONSOLIDATED NET INCOME
|
877,969 | 483,114 | (55,599 | ) | 1,305,485 | |||||||||||
|
Preferred dividend requirements of subsidiaries
|
17,329 | 2,732 | - | 20,061 | ||||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 860,640 | $ | 480,382 | $ | (55,599 | ) | $ | 1,285,424 | |||||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 4.76 | $ | 2.66 | $ | (0.31 | ) | $ | 7.11 | |||||||
|
DILUTED
|
$ | 4.73 | $ | 2.64 | $ | (0.31 | ) | $ | 7.06 | |||||||
|
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
|
BASIC
|
180,719,549 | |||||||||||||||
|
DILUTED
|
182,090,812 | |||||||||||||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||||||
|
Consolidating Income Statement
|
||||||||||||||||
|
Twelve Months Ended June 30, 2012 vs. 2011
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
|
OPERATING REVENUES
|
||||||||||||||||
|
Electric
|
$ | (281,720 | ) | $ | - | $ | (843 | ) | $ | (282,563 | ) | |||||
|
Natural gas
|
(34,818 | ) | - | - | (34,818 | ) | ||||||||||
|
Competitive businesses
|
- | (98,438 | ) | (7,104 | ) | (105,542 | ) | |||||||||
|
Total
|
(316,538 | ) | (98,438 | ) | (7,947 | ) | (422,923 | ) | ||||||||
|
OPERATING EXPENSES
|
||||||||||||||||
|
Operating and Maintenance:
|
||||||||||||||||
|
Fuel, fuel related expenses, and gas purchased for resale
|
(44,616 | ) | 43,318 | (413 | ) | (1,711 | ) | |||||||||
|
Purchased power
|
(214,509 | ) | 21,563 | (7,568 | ) | (200,515 | ) | |||||||||
|
Nuclear refueling outage expenses
|
(391 | ) | (5,801 | ) | - | (6,191 | ) | |||||||||
|
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
|
Other operation and maintenance
|
54,321 | (31,296 | ) | 36,053 | 59,079 | |||||||||||
|
Decommissioning
|
4,988 | (73,765 | ) | - | (68,777 | ) | ||||||||||
|
Taxes other than income taxes
|
7,926 | 21,906 | 657 | 30,489 | ||||||||||||
|
Depreciation and amortization
|
34,881 | 19,041 | (53 | ) | 53,868 | |||||||||||
|
Other regulatory charges (credits )- net
|
315,458 | - | - | 315,458 | ||||||||||||
|
Total
|
158,058 | 350,490 | 28,676 | 537,224 | ||||||||||||
|
Gain on sale of business
|
- | (44,173 | ) | - | (44,173 | ) | ||||||||||
|
OPERATING INCOME
|
(474,596 | ) | (493,101 | ) | (36,623 | ) | (1,004,320 | ) | ||||||||
|
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
|
Allowance for equity funds used during construction
|
32,355 | - | - | 32,355 | ||||||||||||
|
Interest and investment income
|
(35,281 | ) | 4,579 | 3,726 | (26,977 | ) | ||||||||||
|
Miscellaneous - net
|
(4,331 | ) | (5,561 | ) | 3,138 | (6,754 | ) | |||||||||
|
Total
|
(7,257 | ) | (982 | ) | 6,864 | (1,376 | ) | |||||||||
|
INTEREST EXPENSE
|
||||||||||||||||
|
Interest expense
|
2,786 | 4,182 | 13,780 | 20,748 | ||||||||||||
|
Allowance for borrowed funds used during construction
|
(5,745 | ) | - | - | (5,745 | ) | ||||||||||
|
Total
|
(2,959 | ) | 4,182 | 13,780 | 15,003 | |||||||||||
|
INCOME BEFORE INCOME TAXES
|
(478,894 | ) | (498,265 | ) | (43,539 | ) | (1,020,699 | ) | ||||||||
|
Income taxes
|
(679,135 | ) | (231,017 | ) | 177,999 | (732,153 | ) | |||||||||
|
CONSOLIDATED NET INCOME
|
200,241 | (267,248 | ) | (221,538 | ) | (288,546 | ) | |||||||||
|
Preferred dividend requirements of subsidiaries
|
- | (853 | ) | 2,220 | 1,367 | |||||||||||
|
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 200,241 | $ | (266,395 | ) | $ | (223,758 | ) | $ | (289,913 | ) | |||||
|
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
|
BASIC
|
$ | 1.24 | $ | (1.45 | ) | $ | (1.27 | ) | $ | (1.48 | ) | |||||
|
DILUTED
|
$ | 1.24 | $ | (1.43 | ) | $ | (1.26 | ) | $ | (1.45 | ) | |||||
|
*Totals may not foot due to rounding.
|
||||||||||||||||
|
Entergy Corporation
|
||||||||||||
|
Consolidated Cash Flow Statement
|
||||||||||||
|
Three Months Ended June 30, 2012 vs. 2011
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
2012
|
2011
|
Variance
|
||||||||||
|
OPERATING ACTIVITIES
|
||||||||||||
|
Consolidated net income
|
$ | 370,583 | $ | 320,598 | $ | 49,985 | ||||||
|
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
|
provided by operating activities:
|
||||||||||||
|
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
382,653 | 429,617 | (46,964 | ) | ||||||||
|
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
(161,515 | ) | 131,337 | (292,852 | ) | |||||||
|
Changes in working capital:
|
||||||||||||
|
Receivables
|
(208,387 | ) | (270,964 | ) | 62,577 | |||||||
|
Fuel inventory
|
991 | 7,051 | (6,060 | ) | ||||||||
|
Accounts payable
|
153,938 | 77,595 | 76,343 | |||||||||
|
Prepaid taxes and taxes accrued
|
77,137 | 61,108 | 16,029 | |||||||||
|
Interest accrued
|
25,216 | 28,574 | (3,358 | ) | ||||||||
|
Deferred fuel
|
(71,496 | ) | (131,504 | ) | 60,008 | |||||||
|
Other working capital accounts
|
(73,688 | ) | (10,092 | ) | (63,596 | ) | ||||||
|
Changes in provisions for estimated losses
|
(4,237 | ) | (5,175 | ) | 938 | |||||||
|
Changes in other regulatory assets
|
52,788 | 47,660 | 5,128 | |||||||||
|
Changes in pensions and other postretirement liabilities
|
(29,777 | ) | (41,348 | ) | 11,571 | |||||||
|
Other
|
73,213 | 9,691 | 63,522 | |||||||||
|
Net cash flow provided by operating activities
|
587,419 | 654,148 | (66,729 | ) | ||||||||
|
INVESTING ACTIVITIES
|
||||||||||||
|
Construction/capital expenditures
|
(688,738 | ) | (504,732 | ) | (184,006 | ) | ||||||
|
Allowance for equity funds used during construction
|
28,969 | 21,392 | 7,577 | |||||||||
|
Nuclear fuel purchases
|
(39,745 | ) | (102,193 | ) | 62,448 | |||||||
|
Payment for purchase of plant
|
(645 | ) | (299,590 | ) | 298,945 | |||||||
|
Changes in securitization account
|
11,936 | 2,746 | 9,190 | |||||||||
|
Payments to storm reserve escrow account
|
(1,504 | ) | (1,559 | ) | 55 | |||||||
|
Receipts from storm reserve escrow account
|
17,023 | - | 17,023 | |||||||||
|
Decrease (increase) in other investments
|
(56,710 | ) | (21,781 | ) | (34,929 | ) | ||||||
|
Proceeds from nuclear decommissioning trust fund sales
|
409,282 | 143,677 | 265,605 | |||||||||
|
Investment in nuclear decommissioning trust funds
|
(430,799 | ) | (168,858 | ) | (261,941 | ) | ||||||
|
Net cash flow used in investing activities
|
(750,931 | ) | (930,898 | ) | 179,967 | |||||||
|
FINANCING ACTIVITIES
|
||||||||||||
|
Proceeds from the issuance of:
|
||||||||||||
|
Long-term debt
|
290,217 | 663,736 | (373,519 | ) | ||||||||
|
Common stock and treasury stock
|
1,802 | 4,678 | (2,876 | ) | ||||||||
|
Retirement of long-term debt
|
(340,278 | ) | (277,856 | ) | (62,422 | ) | ||||||
|
Repurchase of common stock
|
- | (105,198 | ) | 105,198 | ||||||||
|
Changes in credit borrowings - net
|
(37,397 | ) | (52,284 | ) | 14,887 | |||||||
|
Dividends paid:
|
||||||||||||
|
Common stock
|
(147,067 | ) | (147,677 | ) | 610 | |||||||
|
Preferred stock
|
(5,583 | ) | (5,016 | ) | (567 | ) | ||||||
|
Net cash flow provided by (used in) financing activities
|
(238,306 | ) | 80,383 | (318,689 | ) | |||||||
|
Effect of exchange rates on cash and cash equivalents
|
209 | (12 | ) | 221 | ||||||||
|
Net increase (decrease) in cash and cash equivalents
|
(401,609 | ) | (196,379 | ) | (205,230 | ) | ||||||
|
Cash and cash equivalents at beginning of period
|
685,002 | 726,237 | (41,235 | ) | ||||||||
|
Cash and cash equivalents at end of period
|
$ | 283,393 | $ | 529,858 | $ | (246,465 | ) | |||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
|
Cash paid (received) during the period for:
|
||||||||||||
|
Interest - net of amount capitalized
|
$ | 118,962 | $ | 102,930 | $ | 16,032 | ||||||
|
Income taxes
|
$ | 6,458 | $ | 4,457 | $ | 2,001 | ||||||
|
Entergy Corporation
|
||||||||||||
|
Consolidated Cash Flow Statement
|
||||||||||||
|
Six Months Ended June 30, 2012 vs. 2011
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
2012
|
2011
|
Variance
|
||||||||||
|
OPERATING ACTIVITIES
|
||||||||||||
|
Consolidated net income
|
$ | 223,844 | $ | 574,277 | $ | (350,433 | ) | |||||
|
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
|
provided by operating activities:
|
||||||||||||
|
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
832,662 | 852,028 | (19,366 | ) | ||||||||
|
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
(122,657 | ) | 305,121 | (427,778 | ) | |||||||
|
Asset impairment
|
355,524 | - | 355,524 | |||||||||
|
Changes in working capital:
|
||||||||||||
|
Receivables
|
(52,185 | ) | (168,253 | ) | 116,068 | |||||||
|
Fuel inventory
|
(19,222 | ) | (5,457 | ) | (13,765 | ) | ||||||
|
Accounts payable
|
8,339 | (76,803 | ) | 85,142 | ||||||||
|
Prepaid taxes and taxes accrued
|
(12,446 | ) | (2,810 | ) | (9,636 | ) | ||||||
|
Interest accrued
|
(6,978 | ) | (39,404 | ) | 32,426 | |||||||
|
Deferred fuel
|
5,909 | (198,052 | ) | 203,961 | ||||||||
|
Other working capital accounts
|
(108,441 | ) | (112,386 | ) | 3,945 | |||||||
|
Changes in provisions for estimated losses
|
(19,267 | ) | (5,954 | ) | (13,313 | ) | ||||||
|
Changes in other regulatory assets
|
113,645 | 96,549 | 17,096 | |||||||||
|
Changes in pensions and other postretirement liabilities
|
(34,541 | ) | (232,306 | ) | 197,765 | |||||||
|
Other
|
23,733 | (9,301 | ) | 33,034 | ||||||||
|
Net cash flow provided by operating activities
|
1,187,919 | 977,249 | 210,670 | |||||||||
|
INVESTING ACTIVITIES
|
||||||||||||
|
Construction/capital expenditures
|
(1,252,277 | ) | (991,293 | ) | (260,984 | ) | ||||||
|
Allowance for equity funds used during construction
|
54,417 | 38,681 | 15,736 | |||||||||
|
Nuclear fuel purchases
|
(240,804 | ) | (403,168 | ) | 162,364 | |||||||
|
Payment for purchase of plant
|
(645 | ) | (299,590 | ) | 298,945 | |||||||
|
Changes in securitization account
|
12,876 | 9,106 | 3,770 | |||||||||
|
NYPA value sharing payment
|
(72,000 | ) | (72,000 | ) | - | |||||||
|
Payments to storm reserve escrow account
|
(2,987 | ) | (3,294 | ) | 307 | |||||||
|
Receipts from storm reserve escrow account
|
17,884 | - | 17,884 | |||||||||
|
Decrease (increase) in other investments
|
37,076 | (42,994 | ) | 80,070 | ||||||||
|
Proceeds from nuclear decommissioning trust fund sales
|
944,833 | 636,359 | 308,474 | |||||||||
|
Investment in nuclear decommissioning trust funds
|
(998,579 | ) | (699,530 | ) | (299,049 | ) | ||||||
|
Net cash flow used in investing activities
|
(1,500,206 | ) | (1,827,723 | ) | 327,517 | |||||||
|
FINANCING ACTIVITIES
|
||||||||||||
|
Proceeds from the issuance of:
|
||||||||||||
|
Long-term debt
|
1,325,162 | 1,075,180 | 249,982 | |||||||||
|
Preferred stock
|
51,000 | - | 51,000 | |||||||||
|
Common stock and treasury stock
|
34,628 | 16,958 | 17,670 | |||||||||
|
Retirement of long-term debt
|
(1,199,926 | ) | (555,940 | ) | (643,986 | ) | ||||||
|
Repurchase of common stock
|
- | (159,602 | ) | 159,602 | ||||||||
|
Changes in credit borrowings - net
|
(4,615 | ) | 15,960 | (20,575 | ) | |||||||
|
Dividends paid:
|
||||||||||||
|
Common stock
|
(293,741 | ) | (296,355 | ) | 2,614 | |||||||
|
Preferred stock
|
(11,165 | ) | (10,031 | ) | (1,134 | ) | ||||||
|
Net cash flow provided by (used in) financing activities
|
(98,657 | ) | 86,170 | (184,827 | ) | |||||||
|
Effect of exchange rates on cash and cash equivalents
|
(101 | ) | (310 | ) | 209 | |||||||
|
Net increase (decrease) in cash and cash equivalents
|
(411,045 | ) | (764,614 | ) | 353,569 | |||||||
|
Cash and cash equivalents at beginning of period
|
694,438 | 1,294,472 | (600,034 | ) | ||||||||
|
Cash and cash equivalents at end of period
|
$ | 283,393 | $ | 529,858 | $ | (246,465 | ) | |||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
|
Cash paid (received) during the period for:
|
||||||||||||
|
Interest - net of amount capitalized
|
$ | 253,617 | $ | 267,493 | $ | (13,876 | ) | |||||
|
Income taxes
|
$ | 42,450 | $ | 77 | $ | 42,373 | ||||||
|
Entergy Corporation
|
||||||||||||
|
Consolidated Cash Flow Statement
|
||||||||||||
|
Twelve Months Ended June 30, 2012 vs. 2011
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
2012
|
2011
|
Variance
|
||||||||||
|
OPERATING ACTIVITIES
|
||||||||||||
|
Consolidated net income
|
$ | 1,016,939 | $ | 1,305,485 | $ | (288,546 | ) | |||||
|
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
|
provided by operating activities:
|
||||||||||||
|
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
1,726,089 | 1,725,574 | 515 | |||||||||
|
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
(707,807 | ) | 681,467 | (1,389,274 | ) | |||||||
|
Asset impairment
|
355,524 | - | 355,524 | |||||||||
|
Gain on sale of business
|
- | (44,173 | ) | 44,173 | ||||||||
|
Changes in working capital:
|
||||||||||||
|
Receivables
|
144,159 | (90,448 | ) | 234,607 | ||||||||
|
Fuel inventory
|
(8,372 | ) | (21,124 | ) | 12,752 | |||||||
|
Accounts payable
|
(46,828 | ) | 116,738 | (163,566 | ) | |||||||
|
Prepaid taxes and taxes accrued
|
570,406 | (129,902 | ) | 700,308 | ||||||||
|
Interest accrued
|
(1,746 | ) | 7,062 | (8,808 | ) | |||||||
|
Deferred fuel
|
148,275 | (187,073 | ) | 335,348 | ||||||||
|
Other working capital accounts
|
45,820 | (145,888 | ) | 191,708 | ||||||||
|
Changes in provisions for estimated losses
|
(24,399 | ) | 289,548 | (313,947 | ) | |||||||
|
Changes in other regulatory assets
|
(656,148 | ) | 458,660 | (1,114,808 | ) | |||||||
|
Changes in pensions and other postretirement liabilities
|
1,160,226 | (238,963 | ) | 1,399,189 | ||||||||
|
Other
|
(382,651 | ) | (291,467 | ) | (91,184 | ) | ||||||
|
Net cash flow provided by operating activities
|
3,339,487 | 3,435,496 | (96,009 | ) | ||||||||
|
INVESTING ACTIVITIES
|
||||||||||||
|
Construction/capital expenditures
|
(2,301,011 | ) | (2,046,997 | ) | (254,014 | ) | ||||||
|
Allowance for equity funds used during construction
|
101,988 | 67,136 | 34,852 | |||||||||
|
Nuclear fuel purchases
|
(479,129 | ) | (592,050 | ) | 112,921 | |||||||
|
Payment for purchase of plant
|
(347,192 | ) | (299,590 | ) | (47,602 | ) | ||||||
|
Proceeds from sale of assets and businesses
|
6,531 | 218,496 | (211,965 | ) | ||||||||
|
Insurance proceeds received for property damages
|
- | 7,894 | (7,894 | ) | ||||||||
|
Changes in securitization account
|
(3,490 | ) | 1,689 | (5,179 | ) | |||||||
|
NYPA value sharing payment
|
(72,000 | ) | (72,000 | ) | - | |||||||
|
Payments to storm reserve escrow account
|
(6,118 | ) | (296,878 | ) | 290,760 | |||||||
|
Receipts from storm reserve escrow account
|
17,884 | - | 17,884 | |||||||||
|
Decrease (increase) in other investments
|
68,447 | (73,468 | ) | 141,915 | ||||||||
|
Proceeds from nuclear decommissioning trust fund sales
|
1,668,820 | 1,755,355 | (86,535 | ) | ||||||||
|
Investment in nuclear decommissioning trust funds
|
(1,774,066 | ) | (1,898,632 | ) | 124,566 | |||||||
|
Net cash flow used in investing activities
|
(3,119,336 | ) | (3,229,045 | ) | 109,709 | |||||||
|
FINANCING ACTIVITIES
|
||||||||||||
|
Proceeds from the issuance of:
|
||||||||||||
|
Long-term debt
|
3,240,863 | 4,420,085 | (1,179,222 | ) | ||||||||
|
Preferred stock
|
51,000 | - | 51,000 | |||||||||
|
Common stock and treasury stock
|
63,855 | 59,405 | 4,450 | |||||||||
|
Retirement of long-term debt
|
(3,081,358 | ) | (3,959,295 | ) | 877,937 | |||||||
|
Repurchase of common stock
|
(75,030 | ) | (900,429 | ) | 825,399 | |||||||
|
Redemption of subsidiary common and preferred stock
|
(30,308 | ) | - | (30,308 | ) | |||||||
|
Changes in credit borrowings - net
|
(27,076 | ) | (9,675 | ) | (17,401 | ) | ||||||
|
Dividends paid:
|
||||||||||||
|
Common stock
|
(586,991 | ) | (601,413 | ) | 14,422 | |||||||
|
Preferred stock
|
(22,067 | ) | (20,061 | ) | (2,006 | ) | ||||||
|
Net cash flow used in financing activities
|
(467,112 | ) | (1,011,383 | ) | 544,271 | |||||||
|
Effect of exchange rates on cash and cash equivalents
|
496 | (734 | ) | 1,230 | ||||||||
|
Net increase (decrease) in cash and cash equivalents
|
(246,465 | ) | (805,666 | ) | 559,201 | |||||||
|
Cash and cash equivalents at beginning of period
|
529,858 | 1,335,524 | (805,666 | ) | ||||||||
|
Cash and cash equivalents at end of period
|
$ | 283,393 | $ | 529,858 | $ | (246,465 | ) | |||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
|
Cash paid (received) during the period for:
|
||||||||||||
|
Interest - net of amount capitalized
|
$ | 518,395 | $ | 532,873 | $ | (14,478 | ) | |||||
|
Income taxes
|
$ | 40,331 | $ | 6,167 | $ | 34,164 | ||||||