Attached files
file | filename |
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8-K - ENTERGY CORP /DE/ | a05412.htm |
EX-99.2 - ENTERGY CORP /DE/ | a05412992.htm |
EX-99.3 - ENTERGY CORP /DE/ | a05412993.htm |
For further information:
Paula Waters, VP, Investor Relations
504/576-4380
pwater1@entergy.com
|
INVESTOR NEWS
Exhibit 99.1
Nov. 5, 2012
ENTERGY REPORTS THIRD QUARTER EARNINGS AND
ISSUES FORWARD-LOOKING FINANCIAL UPDATE
NEW ORLEANS – Entergy Corporation (NYSE: ETR) reported earnings of $1.89 per share on an as-reported basis and $1.95 per share on an operational basis for third 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
|
||||||
Third Quarter and Year-to-Date 2012 vs. 2011
|
||||||
(Per share in U.S. $)
|
||||||
Third Quarter
|
Year-to-Date
|
|||||
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
As-Reported Earnings
|
1.89
|
3.53
|
(1.64)
|
3.10
|
6.67
|
(3.57)
|
Less Special Items
|
(0.06)
|
-
|
(0.06)
|
(1.41)
|
-
|
(1.41)
|
Operational Earnings
|
1.95
|
3.53
|
(1.58)
|
4.51
|
6.67
|
(2.16)
|
Weather Impact
|
0.08
|
0.29
|
(0.21)
|
(0.01)
|
0.57
|
(0.58)
|
Operational Earnings Highlights for Third Quarter 2012
·
|
Utility earnings were lower due largely to the absence of the net earnings benefit associated with an August 2011 Internal Revenue Service settlement and higher non-fuel operation and maintenance expense.
|
·
|
Entergy Wholesale Commodities earnings decreased due primarily to lower net revenue and higher non-fuel operation and maintenance expense, partially offset by a lower effective income tax rate.
|
·
|
Parent & Other results declined due primarily to higher income tax expense on Parent & Other activities.
|
“While our near-term financial results and outlook continue to reflect the current low commodity price environment, we remained focused on managing all aspects of our business that we can control day-to-day in a safe and efficient manner,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer. “We’ve made substantial progress on our initiative to join MISO, a regional transmission organization. Most recently, the Arkansas Public Service Commission and the Public Utility Commission of Texas conditionally approved proposals put forth by their respective companies. These milestones move our customers significantly closer to achieving up to $1.4 billion in projected savings over the next decade.
“We continue to focus on the future by managing risk and executing on all initiatives intended to create value for all stakeholders, such as the proposal to spin off and merge the transmission business with ITC Holdings Corp. The new management team’s transition will be seamless as they take over responsibility to complete the initiatives underway, as well as identify new ideas and opportunities.”
Entergy’s business highlights also included the following:
·
|
Entergy initiated the approval process for the spin-off and merger of the transmission business with ITC, including filings in four retail jurisdictions and at the Federal Energy Regulatory Commission.
|
·
|
The New York Independent System Operator finalized the 2012 Reliability Needs Assessment, which reiterated reliability benefits of Indian Point. Two other independent reports also presented findings supporting the importance of Indian Point.
|
·
|
The U.S. Department of Energy gave Entergy’s response to Hurricane Isaac an “A+” noting, “This is one of the best restorations we’ve seen in recent memory and Entergy should be commended.”
|
·
|
Entergy was named to the Dow Jones North America and World Sustainability Indexes, marking the 11th consecutive year of membership in the World or North America Index, or both.
|
A teleconference will be held at noon CT on Monday, Nov. 5, 2012, to discuss Entergy’s third quarter 2012 earnings announcement, and may be accessed by dialing (719) 457-2080, confirmation code 5414008, 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. The telephone replay will be available through Nov. 12, 2012, by dialing (719) 457-0820, confirmation code 5414008.
I.
|
Consolidated Results
|
Consolidated Earnings
Table 2 provides a comparative summary of consolidated earnings per share for third quarter and year-to-date 2012 versus 2011, including a reconciliation of GAAP as-reported earnings to non-GAAP operational earnings. Third quarter 2012 earnings decreased compared to a year ago. A detailed discussion of the factors driving quarterly results at each business segment follows.
Table 2: Consolidated Earnings – Reconciliation of GAAP to Non-GAAP Measures
Third Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||
(Per share in U.S. $)
|
||||||
Third Quarter
|
Year-to-Date
|
|||||
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
As-Reported
|
||||||
Utility
|
1.66
|
2.95
|
(1.29)
|
3.73
|
5.24
|
(1.51)
|
Entergy Wholesale Commodities
|
0.67
|
0.73
|
(0.06)
|
0.18
|
1.78
|
(1.60)
|
Parent & Other
|
(0.44)
|
(0.15)
|
(0.29)
|
(0.81)
|
(0.35)
|
(0.46)
|
Consolidated As-Reported Earnings
|
1.89
|
3.53
|
(1.64)
|
3.10
|
6.67
|
(3.57)
|
Less Special Items
|
||||||
Utility
|
(0.06)
|
-
|
(0.06)
|
(0.15)
|
-
|
(0.15)
|
Entergy Wholesale Commodities
|
-
|
-
|
-
|
(1.26)
|
-
|
(1.26)
|
Parent & Other
|
-
|
-
|
-
|
-
|
-
|
-
|
Consolidated Special Items
|
(0.06)
|
-
|
(0.06)
|
(1.41)
|
-
|
(1.41)
|
Operational
|
||||||
Utility
|
1.72
|
2.95
|
(1.23)
|
3.88
|
5.24
|
(1.36)
|
Entergy Wholesale Commodities
|
0.67
|
0.73
|
(0.06)
|
1.44
|
1.78
|
(0.34)
|
Parent & Other
|
(0.44)
|
(0.15)
|
(0.29)
|
(0.81)
|
(0.35)
|
(0.46)
|
Consolidated Operational Earnings
|
1.95
|
3.53
|
(1.58)
|
4.51
|
6.67
|
(2.16)
|
Weather Impact
|
0.08
|
0.29
|
(0.21)
|
(0.01)
|
0.57
|
(0.58)
|
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 third quarter 2012 was $1,032 million compared to $1,153 million in third quarter 2011. The overall quarterly decrease was due primarily to:
·
|
Decrease in EWC net revenue and
|
·
|
Non-capital storm spending associated with Hurricane Isaac.
|
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
|
||||||
Third Quarter and Year-to-Date 2012 vs. 2011
|
||||||
(U.S. $ in millions)
|
||||||
Third Quarter
|
Year-to-Date
|
|||||
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
Utility
|
821
|
850
|
(29)
|
1,797
|
1,490
|
307
|
Entergy Wholesale Commodities
|
273
|
357
|
(84)
|
566
|
738
|
(172)
|
Parent & Other
|
(62)
|
(54)
|
(8)
|
(143)
|
(98)
|
(45)
|
Total Net Cash Flow Provided by Operating Activities
|
1,032
|
1,153
|
(121)
|
2,220
|
2,130
|
90
|
II.
|
Utility
|
In third quarter 2012, Utility earnings were $1.66 per share on an as-reported basis and $1.72 per share on an operational basis, compared to as-reported and operational earnings per share of $2.95 in third quarter 2011. The quarter-over-quarter decrease was due largely to the absence of the net earnings benefit from a 2011 IRS settlement that resulted in a significant reduction in income tax expense, the majority of which was recorded at the Utility, and the regulatory charge recorded to reflect the agreement to share the benefits resulting from the settlement with ELL customers, which decreased net revenue.
Third quarter 2012 Utility net revenue increased. However, excluding the prior year regulatory charge, Utility net revenue decreased slightly due to several factors. Billed retail sales volume was down quarter over quarter driven primarily by the effects of weather and Hurricane Isaac. Overall, weather was warmer than normal for the current quarter, but fell short of the significantly above-normal temperatures experienced in the third quarter of 2011. The decreases were largely offset by the net effect of regulatory actions in several jurisdictions and increased net revenue attributable to weather-adjusted volume. Although total weather-adjusted retail sales growth was essentially flat, net revenue increased from sales growth due to growth in the higher-margin residential and commercial segments.
Higher non-fuel operation and maintenance expense and higher depreciation expense also contributed to the quarter-over-quarter decline. The non-fuel operation and maintenance expense increase was attributable to several factors, including the absence of a deferral of previously expensed outage costs at ENOI recorded in the third quarter of 2011, a temporary increase in EMI’s storm damage reserve and higher costs related to EAI’s energy efficiency program (both offset in net revenue) and higher compensation and benefits costs (largely pension). Those factors were partially offset by deferral or capitalization of Isaac storm restoration costs.
Current quarter results included adjustments recorded in several income statement categories following the PUCT’s final order in ETI’s rate case issued in September 2012. The net effect of approximately $21 million pre-tax was driven primarily by a reduction in ETI's regulatory asset associated with estimated Hurricane Rita insurance recoveries and the expected amortization period of that asset.
Retail electric sales, in billed gigawatt-hours, is summarized in Table 4 by customer segment. Current quarter retail sales reflect the following:
·
|
Residential sales in third quarter 2012, on a weather-adjusted basis, increased 1.4 percent compared to third quarter 2011.
|
·
|
Commercial and governmental sales, on a weather-adjusted basis, increased 0.9 percent quarter over quarter.
|
·
|
Industrial sales in the third quarter decreased 2.5 percent compared to the same quarter of 2011.
|
Billed retail sales growth on a weather-adjusted basis was essentially flat quarter over quarter. Growth in residential and commercial and governmental sales was offset by a decline in industrial sales. The industrial sales decrease was due partly to an outage at a large industrial customer.
Table 4 provides a comparative summary of Utility operational performance measures.
Table 4: Utility Operational Performance Measures
|
||||||||
Third Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||||
Third Quarter
|
Year-to-Date
|
|||||||
2012
|
2011
|
% Change
|
% Weather Adjusted
|
2012
|
2011
|
% Change
|
% Weather Adjusted
|
|
GWh billed
|
||||||||
Residential
|
11,605
|
12,376
|
(6.2)%
|
1.4%
|
27,305
|
29,411
|
(7.2)%
|
3.0%
|
Commercial and governmental
|
9,101
|
9,344
|
(2.6)%
|
0.9%
|
23,846
|
23,923
|
(0.3)%
|
2.4%
|
Industrial
|
10,748
|
11,024
|
(2.5)%
|
(2.5)%
|
31,114
|
30,681
|
1.4%
|
1.4%
|
Total Retail Sales
|
31,454
|
32,744
|
(3.9)%
|
(0.1)%
|
82,265
|
84,015
|
(2.1)%
|
2.2%
|
Wholesale
|
833
|
1,038
|
(19.7)%
|
2,402
|
3,021
|
(20.5)%
|
||
Total Sales
|
32,287
|
33,782
|
(4.4)%
|
84,667
|
87,036
|
(2.7)%
|
||
O&M expense per MWh (a)
|
$16.66
|
$14.93
|
11.6%
|
$18.73
|
$17.11
|
9.5%
|
||
Number of retail customers
|
||||||||
Residential
|
2,379,080
|
2,369,437
|
0.4%
|
|||||
Commercial and governmental
|
356,014
|
353,903
|
0.6%
|
|||||
Industrial
|
47,209
|
47,575
|
(0.8)%
|
|||||
Total Retail Customers
|
2,782,303
|
2,770,915
|
0.4%
|
|||||
(a)
|
Third quarter and year-to-date 2012 exclude 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
|
EWC operational adjusted EBITDA was $185 million in the third quarter of 2012, compared to $241 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 primarily on lower energy pricing. The average realized revenue per megawatt hour for the nuclear fleet was approximately $52, down from approximately $56 in the same period last year. While nuclear generation declined due to an increase in refueling and unplanned outage days, the effect of outage days was partially offset by the exercise of resupply options provided for in power purchase agreements whereby, under these options, EWC may elect to supply power from another source when the plant is not running. Lower net revenue from EWC’s nuclear fleet was partially offset by net revenue from the 583-megawatt RISEC, which was acquired in December 2011. Higher non-fuel operation and maintenance expense also contributed to the operational adjusted EBITDA decline, driven by higher compensation and benefits costs (largely pension) and the RISEC acquisition.
Table 5: Entergy Wholesale Commodities Operational Adjusted EBITDA – Reconciliation of GAAP to Non-GAAP Measures
|
||||||
Third Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||
($ in millions)
|
||||||
Third Quarter
|
Year-to-Date
|
|||||
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
Net income
|
119
|
131
|
(12)
|
32
|
320
|
(288)
|
Add back: interest expense
|
3
|
6
|
(3)
|
16
|
15
|
1
|
Add back: income tax expense
|
34
|
64
|
(30)
|
(10)
|
213
|
(223)
|
Add back: depreciation and amortization
|
30
|
45
|
(15)
|
129
|
133
|
(4)
|
Subtract: interest and investment income
|
30
|
34
|
(4)
|
108
|
98
|
10
|
Add back: decommissioning expense
|
29
|
29
|
-
|
42
|
86
|
(44)
|
Adjusted EBITDA
|
185
|
241
|
(56)
|
101
|
669
|
(568)
|
Add back: special item for asset impairment
|
-
|
-
|
-
|
356
|
-
|
356
|
Operational adjusted EBITDA
|
185
|
241
|
(56)
|
457
|
669
|
(212)
|
EWC earnings for the third quarter 2012 were $0.67 per share on an as-reported basis and an operational basis, compared to $0.73 per share in third quarter 2011. The decline was largely attributable to the operational EBITDA drivers noted above. These items were partially offset by lower depreciation expense and a lower effective income tax rate. The depreciation expense decrease was due primarily to the receipt of proceeds by Indian Point 2 for the resolution of litigation related to the DOE’s failure to provide timely spent fuel storage. The lower effective income tax rate reflected a portion of Entergy Nuclear Power Marketing income tax expense being recorded at Parent & Other due to an ownership restructuring.
Table 6 provides a comparative summary of EWC operational performance measures.
Table 6: Entergy Wholesale Commodities Operational Performance Measures
|
||||||
Third Quarter and Year-to-Date 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||||
Third Quarter
|
Year-to-Date
|
|||||
2012
|
2011
|
% Change
|
2012
|
2011
|
% Change
|
|
Owned capacity
|
6,612
|
6,016
|
9.9%
|
6,612
|
6,016
|
9.9%
|
GWh billed
|
12,002
|
11,255
|
6.6%
|
34,957
|
32,376
|
8.0%
|
Net revenue ($ millions)
|
$495
|
$542
|
(8.7)%
|
$1,391
|
$1,541
|
(9.7)%
|
Average realized revenue per MWh
|
$51.88
|
$56.02
|
(7.4)%
|
$49.84
|
$55.20
|
(9.7)%
|
Non-fuel O&M expense per MWh (b)
|
$23.15
|
$23.71
|
(2.4)%
|
$23.70
|
$24.17
|
(1.9)%
|
EWC Nuclear Fleet
|
||||||
Capacity factor
|
90%
|
98%
|
(8.2)%
|
88%
|
93%
|
(5.4)%
|
GWh billed
|
10,480
|
10,645
|
(1.6)%
|
30,744
|
30,551
|
0.6%
|
Average realized revenue per MWh
|
$52.27
|
$56.07
|
(6.8)%
|
$50.42
|
$55.31
|
(8.8)%
|
Production cost per MWh
|
$26.14
|
$24.92
|
4.9%
|
$26.19
|
$24.97
|
4.9%
|
Refueling outage days:
|
||||||
FitzPatrick (c)
|
15
|
-
|
15
|
-
|
||
Indian Point 2
|
-
|
-
|
28
|
-
|
||
Indian Point 3
|
-
|
-
|
-
|
30
|
||
Palisades
|
-
|
-
|
34
|
-
|
||
Pilgrim
|
-
|
-
|
-
|
25
|
||
|
(b)
|
Measure definition changed for current and historical periods (previously included purchased power expense, which is included in net revenue). Year-to-date 2012 excludes the effect of the special item for impairment of the Vermont Yankee assets.
|
|
(c)
|
Table reflects the duration of refueling outages that occurred through the third quarter; the FitzPatrick refueling outage continued for 19 days into the fourth quarter 2012.
|
Table 7 provides information on current forward capacity and generation contracts for EWC’s fleet, as well as total revenue projections based on market prices as of Sept. 30, 2012. EWC uses a combination of forward physical and financial contracts, including swaps, collars, put and / or call options, to manage forward commodity price risk. Certain hedge volumes have price downside and upside relative to market price movements. The contracted minimum, current expected value and sensitivity are provided to show potential variations. While the sensitivity reflects the minimum, it may not reflect the total maximum upside potential from higher market prices. Information contained in Table 7 represents projections at a point in time and will vary over time based on numerous factors, such as future market prices, contracting activities and generation.
Table 7: Entergy Wholesale Commodities Capacity and Generation
|
||||||
Fourth Quarter 2012 through 2017 (see Appendix F for definitions of certain measures)
|
||||||
(based on market prices as of Sept. 30, 2012) (d)
|
||||||
Balance of 2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
|
EWC Nuclear Portfolio
|
||||||
Energy
|
||||||
Planned TWh of generation
|
11
|
40
|
41
|
41
|
40
|
41
|
Percent of planned generation under contract
|
||||||
Unit-contingent
|
65%
|
41%
|
22%
|
12%
|
12%
|
13%
|
Unit-contingent with availability guarantees
|
13%
|
19%
|
15%
|
13%
|
13%
|
13%
|
Firm LD
|
24%
|
24%
|
55%
|
-%
|
-%
|
-%
|
Offsetting positions
|
(13)%
|
-%
|
(19)%
|
-%
|
-%
|
-%
|
Total
|
89%
|
84%
|
73%
|
25%
|
25%
|
26%
|
Average revenue per MWh on contracted volumes
|
||||||
Minimum
|
$47
|
$45
|
$44
|
$48
|
$50
|
$51
|
Expected based on current market prices
|
$47
|
$45
|
$45
|
$49
|
$51
|
$52
|
Sensitivity: - / + $10 per MWh market price change
|
$47
|
$45 - $47
|
$44 - $48
|
$48 - $52
|
$50 - $54
|
$51 - $55
|
Capacity
|
||||||
Planned net MW in operation
|
5,011
|
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%
|
16%
|
Capacity contracts (e)
|
59%
|
28%
|
13%
|
12%
|
5%
|
-%
|
Total
|
75%
|
44%
|
29%
|
28%
|
21%
|
16%
|
Average revenue under contract per kW per month
(applies to capacity contracts only) (e)
|
$2.2
|
$2.3
|
$2.9
|
$3.3
|
$3.4
|
$-
|
Total Nuclear Energy and Capacity Revenues
|
||||||
Expected sold and market total revenue per MWh
|
$48
|
$47
|
$45
|
$45
|
$47
|
$48
|
Sensitivity: - / + $10 per MWh market price change
|
$47 - $49
|
$46 - $51
|
$42 - $51
|
$38 - $53
|
$40 - $55
|
$41 - $56
|
EWC Non-Nuclear Portfolio
|
||||||
Energy
|
||||||
Planned TWh of generation (f)
|
1
|
6
|
6
|
6
|
6
|
6
|
Percent of planned generation under contract
|
||||||
Cost-based contracts
|
42%
|
39%
|
32%
|
35%
|
32%
|
32%
|
Firm LD
|
5%
|
5%
|
5%
|
7%
|
6%
|
6%
|
Total
|
47%
|
44%
|
37%
|
42%
|
38%
|
38%
|
Capacity
|
||||||
Planned net MW in operation (f)
|
1,052
|
1,052
|
1,052
|
1,052
|
1,052
|
1,052
|
Percent of capacity sold forward
|
||||||
Cost-based contracts
|
35%
|
29%
|
24%
|
24%
|
24%
|
24%
|
Bundled capacity and energy contracts
|
8%
|
8%
|
8%
|
8%
|
8%
|
8%
|
Capacity contracts
|
53%
|
47%
|
47%
|
48%
|
20%
|
-%
|
Total
|
96%
|
84%
|
79%
|
80%
|
52%
|
32%
|
Total Non-Nuclear Net Revenue
|
||||||
Expected portfolio net revenue in $ millions
|
$19
|
$77
|
$80
|
$78
|
$88
|
$97
|
(d)
|
Assumes 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.
|
(e)
|
Does not include Vermont Yankee capacity for the June 2014 through May 2015 delivery period (FCA#5). A delist bid was rejected in FCA#5 auction when it was held in June 2011, but the ISO-NE has until May 2013 to retroactively accept the delist bid.
|
(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 EWC’s wind investment accounted for under the equity method of accounting and Ritchie.
|
IV.
|
Parent & Other
|
Parent & Other reported a loss of $(0.44) per share on an as-reported basis and an operational basis in third quarter 2012, compared to an as-reported and operational loss of $(0.15) per share in third quarter 2011. Higher income tax expense on Parent & Other activities was the primary factor driving the decrease. The major drivers were the absence of favorable income tax adjustments associated with the prior year IRS settlement and the 2012 Entergy Nuclear Power Marketing income tax expense noted earlier. Higher interest expense also contributed to the decrease.
V.
|
2012 Earnings Guidance
|
Entergy updated its 2012 earnings guidance range to be $3.44 to $4.24 per share on an as-reported basis and affirmed operational guidance of $4.85 to $5.65 per share. Entergy noted that indications continue to point to the upper end of the guidance ranges. The revised as-reported guidance range reflects special items recorded in the current quarter for expenses in connection with the proposed spin-off and merger 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.
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 October 2012 (g)
|
||||||
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 ELL 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
|
(0.15)
|
|||||
2012 As-Reported Earnings per Share Guidance Range
|
7.55
|
(3.71)
|
3.84
|
3.44 – 4.24
|
||
(g)
|
Originally prepared November 2011, updated January 2012 to reflect 2011 final results, revised April 2012 and updated on an as-reported basis July 2012 and October 2012. As-reported earnings guidance does not include any fourth quarter 2012 special items for expenses in connection with the proposed spin-off and merger of Entergy’s transmission business with ITC.
|
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 ELL 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 Dec. 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 September 2012 is around $34/MWh
|
·
|
$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 September 2012 is approximately $1.3/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
|
VI.
|
2013 Earnings Guidance
|
Entergy is initiating 2013 earnings guidance in the range of $4.60 to $5.40 per share on both an as-reported basis and an operational basis. Year-over-year changes are shown as point estimates and are applied to an adjusted 2012 starting point to compute the 2013 guidance midpoint. While Entergy affirmed its updated 2012 earnings guidance ranges, the 2012 starting point by business segment was adjusted consistent with current indications and also to improve the alignment of certain intercompany items and income tax activity within the EWC reporting segment. The full-year 2012 adjustment between EWC and Parent & Other is approximately $0.40 per share (reflecting a reduction at EWC and an increase at Parent & Other), which is split roughly 70 percent income tax expense and 30 percent interest income. The overall adjusted starting point per share is $5.55 on an operational basis and $4.14 on an as-reported basis, compared to 2012 earnings per share guidance of $4.85 to $5.65 on an operational basis and $3.44 to $4.24 on an as-reported basis.
As-reported earnings guidance for 2013 does not reflect potential future expenses for the proposed spin-merge of the transmission business with ITC. The as-reported 2013 guidance will be updated throughout the year as these transaction-related expenses are incurred. Drivers for the 2013 earnings 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. Entergy’s 2013 earnings guidance is detailed in Table 9 below.
Table 9: 2013 Earnings Per Share Guidance – As-Reported and Operational
|
|||||
(Per share in U.S. $) – Prepared November 2012
|
|||||
Segment
|
Description of Drivers
|
2012 Adjusted Starting Point
|
Expected Change
|
2013
Guidance
Midpoint
|
2013 Guidance Range
|
Utility
|
Revised 2012 Operational Earnings per Share Guidance
|
4.65
|
|||
Adjustment to normalize weather
|
0.01
|
||||
Increased net revenue due to absence of sharing 2012 tax benefit with customers
|
0.57
|
||||
Increased net revenue due to retail sales growth and rate actions
|
1.25
|
||||
Increased non-fuel operation and maintenance expense
|
(0.40)
|
||||
Increased taxes other than income taxes
|
(0.10)
|
||||
Increased depreciation expense
|
(0.35)
|
||||
Decreased other income
|
(0.05)
|
||||
Increased interest and other charges
|
(0.10)
|
||||
Higher effective income tax rate
|
(0.80)
|
||||
Other
|
0.02
|
||||
Subtotal
|
4.65
|
0.05
|
4.70
|
||
Entergy Wholesale Commodities
|
Revised 2012 Operational Earnings per Share Guidance
|
1.50
|
|||
Decreased net revenue due primarily to lower pricing on nuclear assets
|
(0.40)
|
||||
Increased non-fuel operation and maintenance expense
|
(0.15)
|
||||
Increased decommissioning expense
|
(0.15)
|
||||
Increased depreciation expense
|
(0.10)
|
||||
Lower effective income tax rate
|
0.10
|
||||
Subtotal
|
1.50
|
(0.70)
|
0.80
|
||
Parent & Other
|
Revised 2012 Operational Earnings per Share Guidance
|
(0.60)
|
|||
Increased Parent interest expense
|
(0.05)
|
||||
Lower income tax expense
|
0.15
|
||||
Subtotal
|
(0.60)
|
0.10
|
(0.50)
|
||
Consolidated Operational
|
2013 Operational Earnings per Share Guidance Range
|
5.55
|
(0.55)
|
5.00
|
4.60 – 5.40
|
Consolidated As-Reported
|
Revised 2012 As-Reported Earnings per Share Guidance
|
4.14
|
|||
Changes detailed above
|
(0.55)
|
||||
2012 Expenses associated with the proposed spin-merge of Entergy’s transmission business through September 2012
|
0.15
|
||||
2012 Asset impairment on Vermont Yankee nuclear power plant
|
1.26
|
||||
2013 As-Reported Earnings per Share Guidance Range
|
4.14
|
0.86
|
5.00
|
4.60 – 5.40
|
|
Key assumptions supporting 2013 operational earnings guidance are as follows:
Utility
·
|
Normal weather
|
·
|
Increased net revenue due to the absence of the second quarter 2012 regulatory charge to reflect sharing of income tax benefits with EGSL and ELL customers resulting from an IRS agreement regarding the treatment for hurricanes Katrina and Rita storm cost financings
|
·
|
Retail sales growth of around 1.25 percent on a weather-adjusted basis
|
·
|
Increased net revenue from rate actions, including those associated with the Waterford 3 steam generator replacement project, a full year of the Grand Gulf extended power uprate and the Hinds and Hot Spring acquisitions, which are partially offset by increases in non-fuel operation and maintenance expense, depreciation expense and taxes other than income taxes
|
o
|
Guidance midpoint assumes the Hinds and Hot Spring plants are in service for all of 2013 (the DOJ review of the transaction is ongoing and closing has been delayed while the DOJ continues its review; EAI and EMI do not know when the DOJ will conclude its review or the extent to which its review of the transactions will be affected by the ongoing civil investigation of competitive issues of the Utility operating companies)
|
·
|
Increased non-fuel operation and maintenance expense due to plant acquisitions and other general expense increases
|
·
|
Increased taxes other than income taxes resulting largely from new plant acquisitions as well as increased franchise taxes
|
·
|
Increased depreciation expense associated with capital spending at the Utility and the new depreciation rates established in the ETI rate case in July 2012
|
·
|
Decreased other income due primarily to lower allowance for equity funds used during construction as significant projects moved into service (Waterford 3 steam generator, Grand Gulf extended power uprate)
|
·
|
Increased interest expense due primarily to a higher level of debt outstanding
|
·
|
Higher effective income tax rate in 2013, due largely to the net effect of the absence two items in 2012
|
o
|
Second quarter 2012 reduction in income tax expense resulting from an IRS agreement regarding the tax treatment for storm cost financings in Louisiana associated with hurricanes Katrina and Rita (a portion of which was partially offset in net revenue as noted above) and
|
o
|
First quarter 2012 increase in income tax expense associated with the write off of a regulatory asset at EGSL
|
Entergy Wholesale Commodities
·
|
EWC drivers represent expected variances at the segment level for 2013
|
·
|
46 TWh of total output for the total fleet, reflecting an approximate 92 percent nuclear capacity factor compared to an approximate 90 percent nuclear capacity factor in 2012; 2013 includes approximately 30- to 35-day scheduled refueling outages at Indian Point 3, Pilgrim and Vermont Yankee in Spring 2013 and Palisades in Fall 2013 (outage days vary depending on the scope of the outage)
|
·
|
Assumes full year operations for all nuclear plants
|
·
|
$47/MWh average total energy and capacity revenues for EWC-nuclear fleet based on published market prices at the end of September 2012
|
o
|
$45/MWh average revenue per MWh on contracted energy volumes, representing 84 percent of planned generation
|
o
|
$43/MWh average market price on 16 percent unsold energy volumes
|
o
|
$2.3/kW-month average capacity revenue under contract on 28 percent capacity (excludes bundled capacity contracts, which are priced within the contracted energy volumes above)
|
o
|
$1.8/kW-month average capacity price on 56 percent unsold capacity
|
·
|
$77M non-nuclear portfolio net revenue based on prices at the end of September 2012
|
·
|
Nuclear fuel expense around $6.5/MWh for 2013 compared to approximately $5.9/MWh for 2012
|
·
|
Decreased purchased power expense reflected in net revenue
|
·
|
Non-fuel operation and maintenance expense, including nuclear refueling outage expenses, around $24.3/MWh reflecting increases in refueling outage amortization for Vermont Yankee following the 2012 asset impairment, general expense increases and higher costs at RISEC due to higher maintenance outage costs
|
·
|
Increased decommissioning expense due to the absence of a reduction in the asset retirement obligation resulting from updated decommissioning cost studies completed in the second quarter 2012, which reduced decommissioning expense in the prior year period
|
·
|
Increased depreciation expense on nuclear assets due to higher depreciable plant balances as well as declining useful life of nuclear assets; also contributing was the absence of the third quarter 2012 DOE litigation awards for Indian Point 2 which resulted in a reversal of previously recorded depreciation expense
|
·
|
Lower effective income tax rate in 2013
|
Parent & Other
·
|
Higher Parent interest expense due largely to higher average debt outstanding
|
·
|
Lower income tax expense on Parent & Other activities
|
Other
·
|
2013 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 Sept. 30, 2012
|
·
|
Overall effective income tax rate of 34 percent in 2013, the timing and segment of which may ultimately vary
|
·
|
Pension discount rate of 5.1 percent
|
Earnings guidance for 2013 should be considered in association with earnings sensitivities as shown in Table 10. These sensitivities illustrate the estimated change in operational earnings per share resulting from changes in various revenue and expense drivers. Traditionally, the most significant variables for earnings drivers are retail sales for the Utility and energy prices for EWC. In addition, the earnings guidance range for 2013 takes into consideration a number of regulatory initiatives (rate actions) underway across the Utility jurisdictions.
Estimated annual impacts shown in Table 10 are intended to be indicative rather than precise guidance.
Table 10: 2013 Earnings Sensitivities
|
|||
(Per share in U.S. $) – Prepared November 2012
|
|||
Variable
|
2013 Guidance Assumption
|
Description of Change
|
Estimated
Annual Impact
|
Utility
|
|||
Retail sales growth
Residential
Commercial / Governmental
Industrial
|
Around 1.25% retail 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
|
- / + 0.41
|
Non-fuel operation and maintenance expense
|
Increased due to plant acquisitions and general expenses
|
1% change in expense
|
+ / - 0.08
|
Entergy Wholesale Commodities (h)
|
|||
Nuclear capacity factor
|
92% capacity factor
|
1% change in capacity factor
|
- / + 0.06
|
EWC revenue
|
$47/MWh nuclear revenue;
$77M non-nuclear net revenue
|
$10/MWh market price change
|
- 0.25 / + 0.49
|
Total non-fuel operation and maintenance expense
|
$24.3/MWh non-fuel operation and maintenance expense
|
1% change in expense
|
+ / - 0.04
|
Nuclear Outage (lost revenue only)
|
92% capacity factor, including refueling outages for four EWC nuclear units
|
1,000 MW plant for 10 days at average portfolio energy price of $45/MWh for contracted volumes and $43/MWh for unsold volumes in 2013 (assuming no resupply option exercise)
|
- 0.03 / n/a
|
Consolidated
|
|||
Interest expense
|
Higher debt outstanding balances
|
1% change in interest rate on $1 billion debt
|
+ / - 0.03
|
Effective income tax rate
|
34% effective income tax rate
|
1% change in overall effective income tax rate
|
+ / - 0.08
|
(h)
|
Assumes uninterrupted normal operation at all nuclear plants.
|
VII.
|
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 11 summarizes the updated long-term financial outlook for 2010 through 2014. The updated long-term outlook reflects Entergy’s expectations of economic, business and commodity market conditions through 2014. Entergy also noted that the long-term financial outlook does not reflect the effects of the proposed spin-merge of the transmission business discussed in Appendix A.
Table 11: Long-term Financial Outlook (see Appendix F for definitions of certain measures)
|
||
Updated November 2012
|
||
Category
|
Long-term Outlook
|
Assumption
|
Earnings
|
Utility net income
|
Around 6 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 contracts, EWC is expected to deliver declining adjusted EBITDA for the period through 2014 compared to 2010. However, EWC 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, if any.
|
|
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 EWC 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. Capital deployment through dividends and share repurchases is projected to total around $4 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.
|
||
VIII.
|
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, GAAP and non-GAAP financial measures and abbreviations or acronyms 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
|
In December 2011, the 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. The transaction is targeted to close in 2013 and is subject to the satisfaction of certain closing conditions. Primary filings required include the Entergy Utility operating companies’ retail regulators as well as several federal agencies. ITC shareholders must also approve the transaction.
Appendix A provides a summary of certain activities that are pending.
Appendix A: Regulatory Summary Table for Spin-Merge of Transmission Business
|
|
Proceeding
|
Pending Activities
|
Entergy Retail Regulators
|
Request / Recent Activity: In conjunction with ITC Holdings Corp. and ITC MidSouth LLC, collectively ITC, all of the Utility operating companies, with the exception of ETI, have filed applications with their respective retail regulators seeking approval for the Entergy companies’ proposal to spin off and merge the Utility’s transmission business with ITC, including approval for change of control of the transmission assets and transaction-related steps in the spin-merge. Applications were filed with the LPSC, the CCNO, the APSC and the MPSC on Sept. 5, 2012, Sept. 12, 2012, Sept. 28, 2012 and Oct. 5, 2012, respectively.
Next Steps: At this point, remaining filings are targeted by year end 2012. Given that the PUCT is required to issue an order within 180 days of a filing, ETI plans to monitor the other Utility operating companies for further information on procedural schedules. In addition, EAI will also make a filing with the Missouri Public Service Commission because that operating company has some transmission assets located in the state of Missouri.
The LPSC established a procedural schedule that reflected Staff testimony due in April 2013, a hearing commencing in June 2013 and Commission consideration in September 2013. The CCNO established a procedural schedule that included Advisors testimony due in April 2013 and a hearing in July 2013. The APSC and MPSC have not yet set procedural schedules.
|
Federal Energy Regulatory Commission
|
Sections 203, 205 and 305(a) Filings Recent Activity: On Sept. 24, 2012, the Utility operating companies and ITC filed a joint application with FERC requesting certain approvals related to the proposal to spin off and merge the Utility’s transmission business with ITC, including approval for change of control of the transmission assets under Section 203 of the FPA, approval of transmission service formula rates and certain jurisdictional agreements under Section 205 of the FPA and a petition for declaratory order on application of Section 305(a) of the FPA. Two additional filings related to the transaction were made that same day: (i) MISO’s filing of an amendment to the MISO Tariff to enable the integration of ITC MidSouth’s transmission facilities into MISO for the period after closing of the transaction until the date the Utility operating companies are integrated into MISO’s Day 2 market and (ii) ESI’s filing of an ancillary services tariff and a Notice of Cancellation of Entergy’s OATT.
On Sept. 26, 2012, ESI submitted an application under Section 205 of the FPA requesting FERC authorization to cancel Service Schedule MSS-2 (transmission equalization) of the System Agreement, effective upon the consummation of the transaction.
Next Steps: FERC has set Dec. 7, 2012 as the deadline for filing comments, protests and interventions.
|
Section 204 Filings Recent Activity: On Oct. 31, 2012, three separate applications under Section 204 of the FPA were submitted to FERC (two by Entergy and one by ITC). The applications seek authorization related to certain debt financings necessary to effectuate the ITC transaction. The applications request that FERC grant the requested authorizations within ninety (90) days from the date of the application.
Next Steps: A deadline for comments will be set by FERC.
|
|
Internal Revenue Service
|
Request / Recent Activity: In July 2012, Entergy Corporation submitted a request to the IRS seeking a private letter ruling substantially to the effect that certain requirements for the tax-free treatment of the distribution of Transco are met.
Next Steps: The IRS is expected to make a determination on the request in the first half of 2013.
|
Nuclear Regulatory Commission
|
Request / Recent Activity: On Sept. 27, 2012, Entergy Operations, Inc. on behalf of EAI, EGSL, ELL and SERI submitted an application to the NRC for approval of certain nuclear plant license transfers and amendments as part of the steps to complete the transaction.
Next Steps: The NRC is expected to complete its formal review by mid-2013.
|
Securities and Exchange Commission
|
Request / Recent Activity: On Sept. 25, 2012, ITC filed a Form S-4 Registration Statement with the SEC providing information regarding the proposed spin-merge transaction and including a proxy statement for a special meeting of ITC shareholders. The filing included audited financial statements and disclosures for the Entergy transmission business.
Next Steps: Following completion of the SEC review process, ITC will hold a special meeting of shareholders. ITC’s shareholder vote is anticipated in the first half of 2013.
|
Hart-Scott-Rodino Notification
|
Next Steps: The HSR notification is expected to be made by the end of 2012.
|
Additional Information and Where to Find It
On Sept. 25, 2012, ITC filed a registration statement on Form S-4 with the SEC registering shares of ITC common stock to be issued to Entergy shareholders in connection with the proposed transactions, but this registration statement has not become effective. This registration statement includes a proxy statement of ITC that also constitutes a prospectus of ITC, and will be sent to ITC shareholders. In addition, Mid South TransCo LLC (TransCo) will file a registration statement with the SEC registering TransCo common units to be issued to Entergy shareholders in connection with the proposed transactions. Entergy shareholders are urged to read the proxy statement / prospectus included in the ITC registration statement and the proxy statement / prospectus to be included in the TransCo registration statement (when available) 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 / prospectus and any other relevant documents because they contain important information about TransCo and the proposed transactions. The proxy statement / prospectus 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 third 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
|
|||||||||||
Third 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
|
2.95
|
2.95
|
0.73
|
0.73
|
(0.15)
|
(0.15)
|
3.53
|
3.53
|
|||
Net revenue
|
1.09
|
1.09
|
(i)
|
(0.16)
|
(0.16)
|
(j)
|
(0.01)
|
(0.01)
|
0.92
|
0.92
|
|
Nuclear refueling outage expense
|
(0.01)
|
(0.01)
|
0.02
|
0.02
|
-
|
-
|
0.01
|
0.01
|
|||
Taxes other than income taxes
|
0.01
|
0.01
|
-
|
-
|
-
|
-
|
0.01
|
0.01
|
|||
Depreciation / amortization expense
|
(0.05)
|
(0.05)
|
(k)
|
0.05
|
0.05
|
(l)
|
-
|
-
|
-
|
-
|
|
Preferred dividend requirements
|
-
|
-
|
-
|
-
|
(0.01)
|
(0.01)
|
(0.01)
|
(0.01)
|
|||
Other income (deductions) - other
|
(0.02)
|
(0.02)
|
(0.01)
|
(0.01)
|
-
|
-
|
(0.03)
|
(0.03)
|
|||
Interest expense and other charges
|
(0.03)
|
(0.03)
|
0.01
|
0.01
|
(0.05)
|
(0.05)
|
(m)
|
(0.07)
|
(0.07)
|
||
Other operation & maintenance expense
|
(0.16)
|
(0.10)
|
(n)
|
(0.06)
|
(0.06)
|
(o)
|
-
|
-
|
(0.22)
|
(0.16)
|
|
Income taxes - other
|
(2.12)
|
(2.12)
|
(p)
|
0.09
|
0.09
|
(q)
|
(0.22)
|
(0.22)
|
(r)
|
(2.25)
|
(2.25)
|
2012 earnings
|
1.66
|
1.72
|
0.67
|
0.67
|
(0.44)
|
(0.44)
|
1.89
|
1.95
|
|||
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
|
5.24
|
5.24
|
1.78
|
1.78
|
(0.35)
|
(0.35)
|
6.67
|
6.67
|
|||
Decommissioning expense
|
(0.01)
|
(0.01)
|
0.15
|
0.15
|
(s)
|
-
|
-
|
0.14
|
0.14
|
||
Other income (deductions) - other
|
-
|
-
|
0.03
|
0.03
|
-
|
-
|
0.03
|
0.03
|
|||
Share repurchase effect
|
0.02
|
0.02
|
-
|
-
|
-
|
-
|
0.02
|
0.02
|
|||
Nuclear refueling outage expense
|
(0.01)
|
(0.01)
|
0.03
|
0.03
|
-
|
-
|
0.02
|
0.02
|
|||
Asset impairment
|
-
|
-
|
(1.26)
|
-
|
(t)
|
-
|
-
|
(1.26)
|
-
|
||
Preferred dividend requirements
|
-
|
-
|
0.01
|
0.01
|
(0.02)
|
(0.02)
|
(0.01)
|
(0.01)
|
|||
Taxes other than income taxes
|
(0.01)
|
(0.01)
|
(0.05)
|
(0.05)
|
(u)
|
-
|
-
|
(0.06)
|
(0.06)
|
||
Depreciation / amortization expense
|
(0.10)
|
(0.10)
|
(k)
|
0.02
|
0.02
|
-
|
-
|
(0.08)
|
(0.08)
|
||
Net revenue
|
0.41
|
0.41
|
(i)
|
(0.52)
|
(0.52)
|
(j)
|
(0.02)
|
(0.02)
|
(0.13)
|
(0.13)
|
|
Interest expense and other charges
|
(0.06)
|
(0.06)
|
(v)
|
(0.01)
|
(0.01)
|
(0.08)
|
(0.08)
|
(m)
|
(0.15)
|
(0.15)
|
|
Other operation & maintenance expense
|
(0.47)
|
(0.32)
|
(n)
|
(0.19)
|
(0.19)
|
(o)
|
(0.02)
|
(0.02)
|
(0.68)
|
(0.53)
|
|
Income taxes - other
|
(1.28)
|
(1.28)
|
(p)
|
0.19
|
0.19
|
(q)
|
(0.32)
|
(0.32)
|
(r)
|
(1.41)
|
(1.41)
|
2012 earnings
|
3.73
|
3.88
|
0.18
|
1.44
|
(0.81)
|
(0.81)
|
3.10
|
4.51
|
|||
|
(i)
|
The current quarter and year-to-date increases were due largely to the absence of a regulatory charge recorded in the third quarter of 2011 to reflect an agreement to share tax benefits from an IRS settlement (discussed in (p) below) with ELL customers. The year-to-date variance was partially offset by a similar charge recorded in the second quarter of the current year for sharing of a second quarter 2012 IRS agreement with ELL and EGSL customers. Excluding the regulatory charges, net revenue decreased due to several factors, primarily weather. Weather in 2012 fell short of the significant effects experienced in 2011. Hurricane Isaac, which hit Entergy’s service territory in August 2012, also contributed to these net revenue decreases. Effects of weather and Hurricane Isaac were partially offset by increased net revenue attributable to weather-adjusted volume and the net effect of regulatory actions. Although the overall weather-adjusted billed retail sales change for the quarter was essentially flat, net revenue increased from sales growth in the higher-margin residential and commercial segments. Regulatory actions were in several jurisdictions, including the Grand Gulf uprate and rate actions at ETI and ENOI. ELL’s rate action relating to the acquisition of Unit 2 of the Acadia Energy Center also was reflected in the year-to-date period. The current and year-to-date periods also reflect higher revenue for storm reserves at EMI and energy efficiency programs at EAI, which are offset in non-fuel operation and maintenance expense.
|
Utility Net Revenue Variance Analysis
2012 vs. 2011 ($ EPS)
|
||
Third Quarter
|
Year-to-Date
|
|
Weather
|
(0.21)
|
(0.58)
|
Sales growth / pricing
|
0.17
|
0.44
|
Regulatory agreement
|
1.12
|
0.55
|
Other
|
0.01
|
-
|
Total
|
1.09
|
0.41
|
(j)
|
Decreases in the current quarter and year-to-date were due primarily to lower energy pricing for the EWC nuclear fleet. While nuclear generation declined due to an increase in refueling and unplanned outage days, the effect of outage days was partially offset by the exercise of resupply options provided for in power purchase agreements whereby, under these options, EWC may elect to supply power from another source when the plant is not running. The majority of the resupply benefit 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.
|
(k)
|
The current quarter and year-to-date decreases reflected higher depreciable plant balances. Higher depreciation expense resulting from the ETI rate order effective July 2012 also contributed.
|
(l)
|
The increase in the current quarter was due primarily to an approximate $19 million pre-tax reduction in depreciation expense recorded as a result of an award for a claim by Indian Point 2 against the DOE for spent nuclear fuel storage costs.
|
(m)
|
The current quarter and year-to-date decreases were due largely to a higher average interest rate on borrowed balances.
|
(n)
|
The decreases in the current quarter and year-to-date were attributable to several factors, including the absence of a $13 million deferral of previously-expensed outage costs pursuant to an ENOI regulatory agreement recorded in the third quarter of 2011, higher compensation and benefits costs (largely pension) and higher expense for EMI storm reserves and energy efficiency program costs (offset in net revenue as discussed in (i) above). An adjustment related to the ETI rate order also contributed. The year-to-date decrease was also affected by increased fossil outage spending due to both timing and scope of outage activity. These items were partially offset by third quarter 2012 expenses being redirected as a result of Hurricane Isaac as well as deferral of previously-incurred MISO implementation costs as approved by the FERC and the LPSC in the year-to-date 2012 period. Expenses incurred in connection with the planned spin-merge of the transmission businesses also contributed to the as-reported decrease.
|
(o)
|
Decreases in the current quarter and year-to-date were due primarily to higher compensation and benefits costs (largely pension) and the RISEC acquisition.
|
(p)
|
The current quarter and year-to-date decreases were due primarily to the absence of IRS tax settlements executed in the third quarter of last year which reduced income tax expense at the Utility by approximately $365 million. The year-to-date period includes the write off of an EGSL regulatory asset in the first quarter of 2012 which increased income tax expense approximately $44 million. The year-to-date decrease was partially offset by an agreement reached with the IRS in second quarter 2012 regarding storm cost financings in Louisiana; the resolution of this item decreased income tax expense by approximately $180 million.
|
(q)
|
The current quarter and year-to-date increases reflected a portion of Entergy Nuclear Power Marketing income tax expense which, since the fourth quarter of last year, has been recorded at Parent & Other due to an ownership structuring. The absence of the second quarter 2011 change in Michigan tax law stemming from legislation enacted in May 2011 also contributed to the year-to-date increase.
|
(r)
|
The current quarter and year-to-date decreases reflected a portion of Entergy Nuclear Power Marketing income tax expense which, since the fourth quarter of last year, has been recorded at Parent & Other due to an ownership structuring (as noted in (q) above). Also contributing was the absence of favorable income tax adjustments associated with the third quarter 2011 IRS settlements noted in (p) above. In addition, the year-to-date decrease reflects the absence of a second quarter 2011 reversal of a tax reserve related to an IRS settlement. Partially offsetting in the year-to-date period was benefits from the second quarter 2012 favorable decision 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.
|
(s)
|
The year-to-date increase was due primarily to a reduction in the asset retirement obligation, which reduced decommissioning expense and factored in, among other things, an updated decommissioning cost study for the Pilgrim Nuclear Power Station.
|
(t)
|
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.
|
(u)
|
The year-to-date decrease was due primarily to higher property tax for the James A. FitzPatrick Nuclear Power Plant, which resulted from the expiration of an agreement entered into shortly after the plant was acquired, and higher payroll taxes.
|
(v)
|
The decrease year-to-date was due primarily to the absence of a 2011 revision in the treatment of funds received for transmission interconnection projects, accepted by the FERC, and higher debt balances.
|
Appendix B-3 lists special items by business with quarter-to-quarter and year-to-date comparisons. Amounts are shown on both an earnings per share basis and a net income basis. 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)
|
||||||
Third Quarter and Year-to-Date 2012 vs. 2011
|
||||||
(Per share in U.S. $)
|
||||||
Third Quarter
|
Year-to-Date
|
|||||
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
Utility
|
||||||
Transmission business spin-merge expenses
|
(0.06)
|
-
|
(0.06)
|
(0.15)
|
-
|
(0.15)
|
Entergy Wholesale Commodities
|
||||||
Vermont Yankee asset impairment
|
-
|
-
|
-
|
(1.26)
|
-
|
(1.26)
|
Parent & Other
|
||||||
Transmission business spin-merge expenses
|
-
|
-
|
-
|
-
|
-
|
-
|
Total Special Items
|
(0.06)
|
-
|
(0.06)
|
(1.41)
|
-
|
(1.41)
|
(U.S. $ in millions)
|
||||||
Third Quarter
|
Year-to-Date
|
|||||
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
|
Utility
|
||||||
Transmission business spin-merge expenses
|
(10.7)
|
-
|
(10.7)
|
(26.4)
|
-
|
(26.4)
|
Entergy Wholesale Commodities
|
||||||
Vermont Yankee asset impairment
|
-
|
-
|
-
|
(223.5)
|
-
|
(223.5)
|
Parent & Other
|
||||||
Transmission business spin-merge expenses
|
-
|
-
|
-
|
(1.0)
|
-
|
(1.0)
|
Total Special Items
|
(10.7)
|
-
|
(10.7)
|
(250.9)
|
-
|
(250.9)
|
C.
|
Regulatory Summary
|
Appendix C provides a summary of selected regulatory cases and events that are pending.
Appendix C: Regulatory Summary Table (see Appendix F for definitions of certain abbreviations or acronyms)
|
|
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 APSC in June 2010 authorizing a 10.2 percent allowed ROE. EAI plans to file a base rate case by first quarter of 2013 in order for new rates to be in place concurrent with its December 2013 exit from the System Agreement.
|
Hot Spring Acquisition Recent Activity: The 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 Feb. 9, 2012, the FERC issued an order authorizing the Hot Spring acquisition under Section 203 of the Federal Power Act. 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. EAI and KGen Hot Spring LLC have satisfied their obligations under the 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 / Other Recent Activity: On Sept. 5, 2012, EGSL filed its revised evaluation report for the 2011 test year FRP. The ROE reflected in the revised report was 11.86 percent, which is above the earnings bandwidth. If approved as filed, cost of service rates will decrease $(5.7) million. The filing also reflected a $(20.3) 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 has implemented rates, subject to refund, based upon its supplemental and revised filings; the final determination of such rates remains subject to LPSC review. In June 2012, the LPSC initiated a proceeding to review the allowed ROE in EGSL’s Gas Rate Stabilization Plan. On Aug. 1, 2012, the LPSC Staff filed testimony proposing a 9.3 percent midpoint ROE (recently corrected by Staff to 9.4 percent) for EGSL’s gas operations. On Oct. 5, 2012, EGSL filed testimony supporting the Company’s position that the 10.5 percent midpoint ROE should be maintained. A hearing is scheduled in this matter for Nov. 8-9, 2012. The LPSC established a target deadline for decision by year end 2012. On Sept. 10, 2012, EGSL and ELL filed a petition for appeal and judicial review of the LPSC’s July 2012 order denying recovery of costs associated with preliminary new nuclear development activities at the River Bend site 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 10.65 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. EGSL is required to file a full rate case by January 2013. On July 26, 2012, the LPSC issued an order 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 NNIR.
|
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 / Other Recent Activity: On Sept. 5, 2012, ELL filed its revised evaluation report for the 2011 test year FRP. The ROE reflected in the revised report was 10.38 percent, which is within the earnings bandwidth. If approved as filed, there will be no cost of service rate change. The filing also reflected a $15.9 million increase outside of the FRP sharing mechanism for capacity costs. In addition, in a June 2012 supplemental FRP filing, ELL reflected an estimated year-one Waterford 3 replacement steam generator project adjusted revenue requirement of approximately $101.3 million. ELL has implemented rates, subject to refund, based upon its supplemental and revised filings; the final determination of such rates remains subject to LPSC review. On Sept. 10, 2012, EGSL and ELL filed a petition for appeal and judicial review of the LPSC’s July 2012 order denying recovery of costs associated with preliminary new nuclear development activities at the River Bend site under the NNIR.
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) Jan. 1, 2013, earnings in excess of the upper band (11.05 percent) shall be recognized by recording a regulatory liability. After Jan. 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. ELL is required to file a full rate case by January 2013. On July 26, 2012, the LPSC issued an order 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 NNIR.
|
Appendix C: Regulatory Summary Table (continued) (see Appendix F for definitions of certain abbreviations or acronyms)
|
|
Company
|
Pending Cases / Events
|
Retail Regulation
|
|
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: The 2011 test year FRP filing remains pending. In another matter, on Aug. 7, 2012, the MPSC opened inquiries to review whether the current formulaic methodology used to calculate ROEs in both EMI's FRP and Mississippi Power Company’s annual formulary rate filing are still appropriate or can be improved to better serve the public interest. The intent of this review is for informational purposes only; evaluation of any recommendations for changes to the existing methodology would take place in a general rate case or in the existing FRP docket. A report by the Public Utilities Staff and consultants retained to conduct the study is expected by the end of 2012. EMI will have an opportunity to respond to the report.
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. On March 15, 2012, EMI filed its 2012 FRP evaluation report for the 2011 test year with the 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 revised, 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.
|
Hinds Acquisition Recent Activity: On Aug. 7, 2012, the MPSC approved cost recovery of non-fuel ownership costs of the Hinds facility through the Power Management Rider Schedule. 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 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 Feb. 9, 2012, FERC issued an order authorizing the Hinds acquisition under Section 203 of the FPA. On Feb. 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 Aug. 15, 2012, ENOI filed its revised evaluation report for the 2011 test year FRP. The revised report reflected a 9.57 percent earned ROE for electric (which is below the bandwidth) and a 10.83 percent earned ROE for gas (which is within the bandwidth). ENOI and the CCNO Advisors reached agreement on several electric and gas FRP disputed items. Based upon those items that were agreed upon, on Sept. 26, 2012, ENOI filed for an electric base revenue increase of $4.9 million and no change in gas base rates. These rate changes were effective with the first billing cycle of October 2012 and are subject to refund pending resolution of the remaining disputed items. The CCNO has established a procedural to resolve the remaining disputed items, with a hearing in April 2013. As part of the initial FRP filing, ENOI requested to accelerate the funding of its storm reserve fund to allow it to meet the $75 million target balance established by the CCNO by 2017. The proposed increase is intended to replenish the $20 million expended for hurricanes Gustav and Ike. ENOI is in discussions with the CCNO Advisors regarding a possible renewal or extension of the FRP, which would require CCNO approval.
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: 9.8%
Last Filed Rate Base:
$1.7 billion filed 11/11 based on 6/30/11 adjusted test yr
|
Rate Case Recent Activity: On Sept. 14, 2012, the PUCT issued a final order in ETI’s rate case proceeding. The order reflected a $27.7 million overall retail rate increase and an allowed ROE of 9.8 percent. On Oct. 25, 2012, the PUCT voted to deny the motions for rehearing filed by ETI and other parties on substantive issues. On Oct. 17, 2012, the PUCT held a technical conference on the purchased power capacity rider rulemaking; a proposed rule is expected to be published in November 2012. Once published, the PUCT has six months to act on the proposal.
Background: On Nov. 28, 2011, ETI filed its rate case requesting a $111.8 million base rate increase (subsequently revised to $104.8 million on April 13, 2012) and a 10.6 percent ROE based on an adjusted twelve-month test year ending June 30, 2011. On March 10, 2011, the PUCT opened a rulemaking to review recovery of purchased power capacity costs through a PPR rider.
|
Wholesale Regulation
|
|
System Energy Resources, Inc.
|
Recent Activity: None.
Background: 10.94 percent ROE approved by July 2001 FERC order.
Last Calculated Rate Base: $1.7 billion for Sept. 30, 2012 monthly cost of service.
|
|
Appendix C: Regulatory Summary Table (continued) (see Appendix F for definitions of certain abbreviations or acronyms)
|
||||
Company
|
Pending Cases / Events
|
|||
Wholesale Regulation
|
||||
Transmission, Proposal to Join MISO and System Agreement
Authorized ROE:
11.0% (w)
Last Filed OATT Rate Base:
$2.3 billion (x) filed 5/12 based on 12/31/11 test year
|
Proposal to Join MISO Recent Activity: On Aug. 3, 2012, the APSC issued an order indicating that the Commission was unable to reach a finding at that time and set specific conditions that EAI and MISO must certify are complied with before the APSC can authorize a transfer of control. EAI and MISO submitted filings on Aug. 24 and Aug. 31, respectively, explaining how they had either met each condition or met the apparent intent behind each condition. On Oct. 26, 2012, the APSC authorized EAI to sign the Transmission Owners Agreement and move forward with the MISO integration process; the APSC stated that it would give conditional approval of EAI’s application upon MISO's filing of proof of approval of certain governance enhancements by appropriate MISO entities. On Oct. 31, 2012, MISO filed such proof with the APSC. On Aug. 6, 2012, parties in the PUCT proceeding, with the exception of the SPP, filed a non-unanimous settlement; the substance of the agreement is that it is in the public interest for ETI to transfer functional control of its transmission facilities to MISO under certain conditions. On Oct. 25, 2012, the PUCT voted to approve the NUS with certain additional conditions agreed upon by the settling parties. On Sept. 17, 2012, EMI and the Public Utilities Staff filed a joint stipulation indicating that they agree that EMI’s proposed transfer of functional control of its transmission facilities to MISO is in the public interest, subject to certain contingencies and conditions. The MPSC is expected to issue a decision by Nov. 15, 2012. Settlement discussions are under way in the CCNO proceeding; as a result, the hearing previously scheduled to begin Oct. 23, 2012 was cancelled. FERC filings related to integrating the Utility operating companies into MISO are targeted to be made in late 2012 or early 2013.
On Oct. 2, 2012, FERC approved the Utility operating companies’ request to transition to MISO as the next ICT beginning December 2012 until the earlier of the Utility operating companies joining MISO, targeted for December 2013, or December 2014.
Background: In November 2006, the Utility operating companies installed SPP as their ICT with an initial term of four years (subsequently extended). The Utility operating companies 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.
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 exits of EAI and EMI from the System Agreement. The Utility operating companies subsequently submitted change of control filings to their respective regulators. 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 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, upon unanimous vote and within the first five years after joining 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 Aug. 14, 2012, the U.S. Court of Appeals for the DC Circuit (DC Circuit) issued a decision denying the LPSC and CCNO appeals of FERC’s Nov. 19, 2009 order accepting EAI’s and EMI’s notices to withdraw from the System Agreement effective December 2013 and November 2015, respectively. On Oct. 11, 2012, the DC Circuit denied the LPSC’s request for rehearing and rehearing en banc of the Aug. 14 decision.
On Sept. 28, 2012, the Utility operating companies submitted testimony in the FERC proceeding regarding wholesale opportunity sales of energy by EAI to third parties for the period 2000 through 2009. The testimony included a proposed illustrative re-run of intra-system bills for 2003, 2004 and 2006 (the three years with the highest volume of opportunity sales) consistent with the directives in FERC’s June 2012 order. A hearing on the matter is scheduled in May 2013. No payments will be made or received by the Utility operating companies until a decision is issued by FERC in this phase of the proceeding.
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 DC Circuit, concluded that the prospective bandwidth remedy should begin on June 1, 2005 (the date of its initial order in the proceeding). The Utility operating companies’ request for rehearing of the June 2012 FERC decision was filed on July 23, 2012 and remains pending.
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 2012 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 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. The FERC decision established further hearing procedures to determine the calculations.
|
(w)
|
Applies to sales made under Entergy’s FERC OATT.
|
(x)
|
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
|
||||
Third Quarter 2012 vs. 2011 (see Appendix F for definitions of certain measures)
|
||||
For 12 months ending Sept. 30
|
2012
|
2011
|
Change
|
|
GAAP Measures
|
||||
Return on average invested capital – as-reported
|
4.8%
|
8.2%
|
(3.4%)
|
|
Return on average common equity – as-reported
|
7.8%
|
16.1%
|
(8.3%)
|
|
Net margin – as-reported
|
6.8%
|
12.6%
|
(5.8%)
|
|
Cash flow interest coverage
|
6.8
|
6.6
|
0.2
|
|
Book value per share
|
$51.73
|
$50.92
|
$0.81
|
|
End of period shares outstanding (millions)
|
177.7
|
176.1
|
1.6
|
|
Non-GAAP Measures
|
||||
Return on average invested capital – operational
|
6.0%
|
8.2%
|
(2.2%)
|
|
Return on average common equity – operational
|
10.7%
|
16.1%
|
(5.4%)
|
|
Net margin – operational
|
9.4%
|
12.7%
|
(3.3%)
|
|
As of Sept. 30 ($ in millions)
|
2012
|
2011
|
Change
|
|
GAAP Measures
|
||||
Cash and cash equivalents
|
750
|
987
|
(237)
|
|
Revolver capacity
|
2,917
|
2,116
|
801
|
|
Total debt
|
12,931
|
12,452
|
479
|
|
Securitization debt
|
1,003
|
1,086
|
(83)
|
|
Debt to capital ratio
|
57.7%
|
57.3%
|
0.4%
|
|
Off-balance sheet liabilities:
|
||||
Debt of joint ventures – Entergy’s share
|
91
|
99
|
(8)
|
|
Leases – Entergy’s share
|
508
|
546
|
(38)
|
|
Total off-balance sheet liabilities
|
599
|
645
|
(46)
|
|
Non-GAAP Measures
|
||||
Debt to capital ratio, excluding securitization debt
|
55.7%
|
55.1%
|
0.6%
|
|
Total gross liquidity
|
3,667
|
3,103
|
564
|
|
Net debt to net capital ratio, excluding securitization debt
|
54.1%
|
52.8%
|
1.3%
|
|
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt
|
55.4%
|
54.3%
|
1.1%
|
|
Appendix D-2: Historical Performance Measures
(see Appendix F for definitions of certain measures)
|
|||||||||||||
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
3Q12
|
12YTD
|
11YTD
|
||||
Financial
|
|||||||||||||
EPS – as-reported ($)
|
1.26
|
1.38
|
1.76
|
3.53
|
0.87
|
(0.86)
|
2.06
|
1.89
|
3.10
|
6.67
|
|||
Less – special items ($)
|
(0.04)
|
- -
|
- -
|
- -
|
(0.07)
|
(1.30)
|
(0.05)
|
(0.06)
|
(1.41)
|
- -
|
|||
EPS – operational ($)
|
1.30
|
1.38
|
1.76
|
3.53
|
0.94
|
0.44
|
2.11
|
1.95
|
4.51
|
6.67
|
|||
Trailing twelve months
|
|||||||||||||
ROIC – as-reported (%)
|
7.8
|
7.7
|
7.7
|
8.2
|
8.0
|
6.0
|
6.2
|
4.8
|
|||||
ROIC – operational (%)
|
8.2
|
7.9
|
7.9
|
8.2
|
8.0
|
7.2
|
7.4
|
6.0
|
|||||
ROE – as-reported (%)
|
14.6
|
14.8
|
14.8
|
16.1
|
15.4
|
10.8
|
11.3
|
7.8
|
|||||
ROE – operational (%)
|
15.6
|
15.3
|
15.2
|
16.1
|
15.6
|
13.6
|
14.2
|
10.7
|
|||||
Cash flow interest coverage
|
7.8
|
7.8
|
7.6
|
6.6
|
7.1
|
7.5
|
7.2
|
6.8
|
|||||
Debt to capital ratio (%)
|
57.3
|
57.6
|
58.1
|
57.3
|
57.3
|
57.9
|
57.4
|
57.7
|
|||||
Debt to capital ratio, excluding securitization debt (%)
|
55.3
|
55.7
|
56.3
|
55.1
|
55.0
|
55.7
|
55.3
|
55.7
|
|||||
Net debt to net capital ratio, excluding securitization debt (%)
|
52.1
|
54.0
|
55.1
|
52.8
|
53.5
|
54.2
|
54.7
|
54.1
|
|||||
Utility
|
|||||||||||||
GWh billed
|
|||||||||||||
Residential
|
7,750
|
9,042
|
7,993
|
12,376
|
7,274
|
7,760
|
7,940
|
11,605
|
27,305
|
29,411
|
|||
Commercial & Governmental
|
7,504
|
7,032
|
7,548
|
9,344
|
7,270
|
6,992
|
7,753
|
9,101
|
23,846
|
23,923
|
|||
Industrial
|
9,880
|
9,516
|
10,140
|
11,024
|
10,130
|
9,958
|
10,408
|
10,748
|
31,114
|
30,681
|
|||
Wholesale
|
1,021
|
947
|
1,036
|
1,038
|
1,090
|
732
|
836
|
833
|
2,402
|
3,021
|
|||
O&M expense per MWh (y)
|
$21.18
|
$17.89
|
$19.09
|
$14.93
|
$21.99
|
$20.08
|
$19.94
|
$16.66
|
$18.73
|
$17.11
|
|||
Reliability – trailing twelve months
|
|||||||||||||
SAIFI
|
1.7
|
1.7
|
1.7
|
1.7
|
1.6
|
1.7
|
1.6
|
1.7
|
|||||
SAIDI
|
187
|
188
|
201
|
213
|
208
|
210
|
195
|
193
|
|||||
Entergy Wholesale Commodities
|
|||||||||||||
Owned Capacity in MW
|
6,351
|
6,016
|
6,016
|
6,016
|
6,599
|
6,612
|
6,612
|
6,612
|
6,612
|
6,016
|
|||
GWh billed
|
10,296
|
10,554
|
10,567
|
11,255
|
11,121
|
11,281
|
11,674
|
12,002
|
34,957
|
32,376
|
|||
Net revenue ($ millions)
|
532
|
525
|
474
|
542
|
504
|
452
|
444
|
495
|
1,391
|
1,541
|
|||
Operational adjusted EBITDA
($ millions)
|
281
|
253
|
174
|
241
|
193
|
144
|
127
|
185
|
457
|
669
|
|||
Avg realized revenue per MWh
|
$58.29
|
$56.79
|
$52.74
|
$56.02
|
$52.48
|
$49.29
|
$48.27
|
$51.88
|
$49.84
|
$55.20
|
|||
Non-fuel O&M expense per MWh (y) (z)
|
$25.74
|
$23.37
|
$25.45
|
$23.71
|
$24.60
|
$23.93
|
$24.06
|
$23.15
|
$23.70
|
$24.17
|
|||
EWC Nuclear Operational Measures
|
|||||||||||||
Capacity factor (%)
|
86
|
91
|
91
|
98
|
93
|
88
|
85
|
90
|
88
|
93
|
|||
GWh billed
|
9,644
|
9,913
|
9,993
|
10,645
|
10,367
|
9,838
|
10,426
|
10,480
|
30,744
|
30,551
|
|||
Avg realized revenue per MWh
|
$58.80
|
$57.46
|
$52.38
|
$56.07
|
$53.00
|
$50.32
|
$48.67
|
$52.27
|
$50.42
|
$55.31
|
|||
Production cost per MWh (y)
|
$25.23
|
$24.01
|
$25.96
|
$24.92
|
$25.92
|
$25.85
|
$26.61
|
$26.14
|
$26.19
|
$24.97
|
|||
(y)
|
Excludes effect of special items, including the proposed spin-merge of the transmission business at Utility (2012); non-utility nuclear spin-off expenses special item at EWC (2010) and the impairment of the Vermont Yankee plant at EWC (first quarter and year-to-date 2012).
|
(z)
|
Measure definition changed for current and historical periods (previously included purchased power expense, which is included in net revenue).
|
E.
|
Preliminary Planned Capital Expenditures
|
The preliminary capital plan for 2013 through 2015 anticipates $6.6 billion for investment, including $3.3 billion of maintenance capital, as shown in Appendix E. The remaining $3.3 billion is for specific investments and other initiatives such as:
·
|
Utility: the Utility’s portfolio transformation investment of $0.5 billion for ELL’s Ninemile 6 new CCGT project, approximately $0.3 billion for environmental compliance projects (included in Generation); and Transmission investing capital of approximately $0.7 billion. (Total transmission investment, including maintenance capital, is approximately $1.5 billion including spending to support the Utility’s plan to join the MISO RTO by December 2013.) The preliminary 2013 through 2015 capital plan does not include the Hot Spring and Hinds acquisitions, which would be incremental if closed in 2013. (The DOJ review of the transaction is ongoing. Closing has been delayed while the DOJ continues its review. EAI and EMI do 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.)
|
·
|
Entergy Wholesale Commodities: dry cask storage, nuclear license renewal efforts, component replacement and identified repairs across the fleet, NYPA value sharing and wedgewire screens at the Indian Point site.
|
Appendix E: 2013 – 2015 Preliminary Capital Expenditure Plan
|
Prepared November 2012
|
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. 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, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms
|
|
Utility Operational Performance Measures
|
|
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 Operational Performance Measures
|
|
Net revenue
|
Operating revenue less fuel, fuel related expenses and purchased power
|
Owned capacity
|
Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; EWC sold its 335 MW ownership position in the Harrison County power plant on Dec. 31, 2010; EWC acquired RISEC, a 583 MW natural gas-fired combined-cycle generating plant, on Dec. 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, 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 per MWh
|
Operation, maintenance and refueling expenses 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 EWC 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 under contract
|
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 or approval of transmission rights
|
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; a portion of which may be capped through the use of risk management products
|
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
|
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
|
Appendix F: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms (continued)
|
||
Entergy Wholesale Commodities Operational Performance Measures (continued)
|
||
Average revenue per MWh on contracted volumes
|
Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, 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 will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, 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; also, excludes payments owed under the value sharing agreements, if any
|
|
Average revenue under contract per kW per month (applies to capacity contracts only)
|
Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and / or auction awards
|
|
Expected sold and market revenue per MWh
|
Total energy and capacity revenue on a per unit basis at which total planned generation output, capacity or a combination is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, 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 – 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 EWC
|
|
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 ETI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL
|
|
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
|
|
Appendix F: Definitions of Operational Performance Measures, GAAP and Non-GAAP Financial Measures and Abbreviations or Acronyms (continued)
|
|
Abbreviations or Acronyms
|
|
APSC
|
Arkansas Public Service Commission
|
B&E
|
LPSC Business and Executive Session
|
CCNO
|
Council of the City of New Orleans
|
DOE
|
U.S. Department of Energy
|
DOJ
|
U.S. Department of Justice
|
E-RSC
|
Entergy Regional State Committee
|
EAI
|
Entergy Arkansas, Inc.
|
EGSL
|
Entergy Gulf States Louisiana, L.L.C.
|
ELL
|
Entergy Louisiana, LLC
|
EMI
|
Entergy Mississippi, Inc.
|
ENOI
|
Entergy New Orleans, Inc.
|
ETI
|
Entergy Texas, Inc.
|
EWC
|
Entergy Wholesale Commodities
|
FERC
|
Federal Energy Regulatory Commission
|
FPA
|
Federal Power Act
|
FRP
|
Formula rate plan
|
GAAP
|
Generally accepted accounting principles
|
ICT
|
Independent Coordinator of Transmission
|
HSR
|
Hart-Scott-Rodino Antitrust Improvements Act
|
LPSC
|
Louisiana Public Service Commission
|
MISO
|
Midwest Independent Transmission System Operator
|
MPSC
|
Mississippi Public Service Commission
|
NNIR
|
LPSC New Nuclear Incentive Rule
|
NRC
|
Nuclear Regulatory Commission
|
NUS
|
Non-unanimous settlement
|
OASIS
|
Open Access Same-time Information System
|
OATT
|
FERC-jurisdictional Open Access Transmission Tariff
|
PUCT
|
Public Utility Commission of Texas
|
SERI
|
System Energy Resources, Inc.
|
RISEC
|
Rhode Island State Energy Center
|
ROE
|
Return on equity
|
RPCE
|
Rough production cost equalization
|
RSG
|
Waterford 3 replacement steam generator project
|
RTO
|
Regional transmission organization
|
SEC
|
U.S. Securities and Exchange Commission
|
SPP
|
Southwest Power Pool
|
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)
|
||||||||
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
3Q12
|
|
As-reported net income-rolling 12 months (A)
|
1,250
|
1,285
|
1,285
|
1,421
|
1,346
|
946
|
996
|
705
|
Preferred dividends
|
20
|
20
|
20
|
20
|
21
|
21
|
21
|
22
|
Tax effected interest expense
|
354
|
327
|
320
|
320
|
316
|
322
|
329
|
342
|
As-reported net income, rolling 12 months including preferred dividends and tax effected interest expense (B)
|
1,624
|
1,632
|
1,625
|
1,761
|
1,683
|
1,289
|
1,346
|
1,069
|
Special items in prior quarters
|
(75)
|
(42)
|
(32)
|
(7)
|
-
|
(13)
|
(244)
|
(253)
|
Special items in current quarter
|
||||||||
Asset impairment
|
-
|
-
|
-
|
-
|
-
|
(224)
|
-
|
-
|
Transmission spin-merge
|
-
|
-
|
-
|
-
|
(13)
|
(7)
|
(9)
|
(11)
|
Nuclear spin-off expenses
|
(7)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Total special items (C)
|
(82)
|
(42)
|
(32)
|
(7)
|
(13)
|
(244)
|
(253)
|
(264)
|
Operational earnings, rolling 12 months including preferred dividends and tax effected interest expense (B-C)
|
1,706
|
1,674
|
1,657
|
1,768
|
1,696
|
1,533
|
1,599
|
1,333
|
Operational earnings, rolling 12 months (A-C)
|
1,332
|
1,327
|
1,317
|
1,428
|
1,359
|
1,190
|
1,249
|
969
|
Average invested capital (D)
|
20,781
|
21,093
|
21,101
|
21,509
|
21,126
|
21,339
|
21,556
|
22,065
|
Average common equity (E)
|
8,555
|
8,698
|
8,684
|
8,849
|
8,729
|
8,725
|
8,814
|
9,078
|
Operating revenues (F)
|
11,488
|
11,269
|
11,210
|
11,273
|
11,229
|
11,072
|
10,787
|
10,355
|
ROIC – as-reported % (B/D)
|
7.8
|
7.7
|
7.7
|
8.2
|
8.0
|
6.0
|
6.2
|
4.8
|
ROIC – operational % ((B-C)/D)
|
8.2
|
7.9
|
7.9
|
8.2
|
8.0
|
7.2
|
7.4
|
6.0
|
ROE – as-reported % (A/E)
|
14.6
|
14.8
|
14.8
|
16.1
|
15.4
|
10.8
|
11.3
|
7.8
|
ROE – operational % ((A-C)/E)
|
15.6
|
15.3
|
15.2
|
16.1
|
15.6
|
13.6
|
14.2
|
10.7
|
Net margin – as-reported % (A/F)
|
10.9
|
11.4
|
11.5
|
12.6
|
12.0
|
8.5
|
9.2
|
6.8
|
Net margin – operational % ((A-C)/F)
|
11.6
|
11.8
|
11.8
|
12.7
|
12.1
|
10.7
|
11.6
|
9.4
|
Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures – Credit and Liquidity Metrics
|
|||||||||
($ in millions)
|
|||||||||
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
3Q12
|
||
Gross debt (A)
|
11,816
|
12,018
|
12,360
|
12,452
|
12,387
|
12,619
|
12,533
|
12,931
|
|
Less securitization debt (B)
|
931
|
910
|
896
|
1,086
|
1,071
|
1,049
|
1,020
|
1,003
|
|
Gross debt, excluding securitization debt (C)
|
10,885
|
11,108
|
11,464
|
11,366
|
11,316
|
11,570
|
11,513
|
11,928
|
|
Less cash and cash equivalents (D)
|
1,294
|
726
|
530
|
987
|
694
|
685
|
283
|
750
|
|
Net debt, excluding securitization debt (E)
|
9,591
|
10,382
|
10,934
|
10,379
|
10,622
|
10,885
|
11,230
|
11,178
|
|
Total capitalization (F)
|
20,623
|
20,864
|
21,268
|
21,728
|
21,629
|
21,813
|
21,844
|
22,402
|
|
Less securitization debt (B)
|
931
|
910
|
896
|
1,086
|
1,071
|
1,049
|
1,020
|
1,003
|
|
Total capitalization, excluding securitization debt (G)
|
19,692
|
19,954
|
20,372
|
20,642
|
20,558
|
20,764
|
20,824
|
21,399
|
|
Less cash and cash equivalents (D)
|
1,294
|
726
|
530
|
987
|
694
|
685
|
283
|
750
|
|
Net capital, excluding securitization debt (H)
|
18,398
|
19,228
|
19,842
|
19,655
|
19,864
|
20,079
|
20,541
|
20,649
|
|
Debt to capital ratio % (A/F)
|
57.3
|
57.6
|
58.1
|
57.3
|
57.3
|
57.9
|
57.4
|
57.7
|
|
Debt to capital ratio, excluding securitization debt % (C/G)
|
55.3
|
55.7
|
56.3
|
55.1
|
55.0
|
55.7
|
55.3
|
55.7
|
|
Net debt to net capital ratio, excluding securitization debt % (E/H)
|
52.1
|
54.0
|
55.1
|
52.8
|
53.5
|
54.2
|
54.7
|
54.1
|
|
Off-balance sheet liabilities (I)
|
653
|
650
|
647
|
645
|
604
|
601
|
600
|
599
|
|
Net debt to net capital ratio including off-balance sheet liabilities, excluding securitization debt % ((E+I)/(H+I))
|
53.8
|
55.5
|
56.5
|
54.3
|
54.8
|
55.5
|
56.0
|
55.4
|
|
Revolver capacity (J)
|
2,354
|
2,258
|
1,993
|
2,116
|
2,001
|
2,825
|
2,762
|
2,917
|
|
Gross liquidity (D+J)
|
3,648
|
2,984
|
2,523
|
3,103
|
2,695
|
3,510
|
3,045
|
3,667
|
|
Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Entergy Wholesale Commodities Operational Adjusted EBITDA
|
||||||||
($ in millions)
|
||||||||
4Q10
|
1Q11
|
2Q11
|
3Q11
|
4Q11
|
1Q12
|
2Q12
|
3Q12
|
|
Net income
|
151
|
123
|
66
|
131
|
172
|
(169)
|
81
|
119
|
Add back: interest expense
|
5
|
5
|
5
|
6
|
6
|
7
|
6
|
3
|
Add back: income tax expense
|
83
|
85
|
64
|
64
|
12
|
(90)
|
46
|
34
|
Add back: depreciation and amortization
|
43
|
43
|
44
|
45
|
46
|
51
|
48
|
30
|
Subtract: interest and investment income
|
39
|
31
|
33
|
34
|
39
|
41
|
37
|
30
|
Add back: decommissioning expense
|
27
|
28
|
28
|
29
|
(4)
|
30
|
(17)
|
29
|
Adjusted EBITDA
|
270
|
253
|
174
|
241
|
193
|
(212)
|
127
|
185
|
Add back: special item for nuclear spin-off
expenses
|
11
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Add back: special item for asset impairment
|
-
|
-
|
-
|
-
|
-
|
356
|
-
|
-
|
Operational adjusted EBITDA
|
281
|
253
|
174
|
241
|
193
|
144
|
127
|
185
|
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 Dec. 31, 2011; (ii) Entergy’s Form 10-Q for the quarters ended March 31, 2012 and June 30, 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.
IX.
|
Financial Statements
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
September 30, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
ASSETS
|
||||||||||||||||
CURRENT ASSETS
|
||||||||||||||||
Cash and cash equivalents:
|
||||||||||||||||
Cash
|
$ | 82,899 | $ | 13,837 | $ | 260 | $ | 96,996 | ||||||||
Temporary cash investments
|
461,584 | 178,344 | 12,795 | 652,723 | ||||||||||||
Total cash and cash equivalents
|
544,483 | 192,181 | 13,055 | 749,719 | ||||||||||||
Securitization recovery trust account
|
52,340 | - | - | 52,340 | ||||||||||||
Notes receivable
|
- | 1,088,976 | (1,088,976 | ) | - | |||||||||||
Accounts receivable:
|
||||||||||||||||
Customer
|
560,126 | 132,896 | - | 693,022 | ||||||||||||
Allowance for doubtful accounts
|
(31,322 | ) | (203 | ) | - | (31,525 | ) | |||||||||
Associated companies
|
25,075 | 135,992 | (161,067 | ) | - | |||||||||||
Other
|
142,315 | 12,775 | (51 | ) | 155,039 | |||||||||||
Accrued unbilled revenues
|
330,413 | 331 | - | 330,744 | ||||||||||||
Total accounts receivable
|
1,026,607 | 281,791 | (161,118 | ) | 1,147,280 | |||||||||||
Deferred fuel costs
|
92,763 | - | - | 92,763 | ||||||||||||
Accumulated deferred income taxes
|
15,130 | - | (10,597 | ) | 4,533 | |||||||||||
Fuel inventory - at average cost
|
204,914 | 6,281 | - | 211,195 | ||||||||||||
Materials and supplies - at average cost
|
577,648 | 347,553 | - | 925,201 | ||||||||||||
Deferred nuclear refueling outage costs
|
103,870 | 131,474 | - | 235,344 | ||||||||||||
System agreement cost equalization
|
17,689 | - | - | 17,689 | ||||||||||||
Prepaid taxes
|
- | 167,483 | (167,483 | ) | - | |||||||||||
Prepayments and other
|
171,845 | 197,910 | 1,931 | 371,686 | ||||||||||||
TOTAL
|
2,807,289 | 2,413,649 | (1,413,188 | ) | 3,807,750 | |||||||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
Investment in affiliates - at equity
|
1,097,271 | 47,646 | (1,097,159 | ) | 47,758 | |||||||||||
Decommissioning trust funds
|
1,844,520 | 2,331,305 | - | 4,175,825 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation)
|
173,834 | 73,605 | 12,086 | 259,525 | ||||||||||||
Other
|
363,424 | 15,601 | 30,000 | 409,025 | ||||||||||||
TOTAL
|
3,479,049 | 2,468,157 | (1,055,073 | ) | 4,892,133 | |||||||||||
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
Electric
|
35,868,583 | 4,617,163 | 3,416 | 40,489,162 | ||||||||||||
Property under capital lease
|
811,533 | - | - | 811,533 | ||||||||||||
Natural gas
|
350,799 | 440 | - | 351,239 | ||||||||||||
Construction work in progress
|
1,608,941 | 355,830 | 753 | 1,965,524 | ||||||||||||
Nuclear fuel
|
877,381 | 667,882 | - | 1,545,263 | ||||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
39,517,237 | 5,641,315 | 4,169 | 45,162,721 | ||||||||||||
Less - accumulated depreciation and amortization
|
17,714,300 | 1,016,514 | 376 | 18,731,190 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET
|
21,802,937 | 4,624,801 | 3,793 | 26,431,531 | ||||||||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
Regulatory assets:
|
||||||||||||||||
Regulatory asset for income taxes - net
|
730,526 | - | - | 730,526 | ||||||||||||
Other regulatory assets
|
4,587,122 | - | - | 4,587,122 | ||||||||||||
Deferred fuel costs
|
201,118 | - | - | 201,118 | ||||||||||||
Goodwill
|
374,099 | 3,073 | - | 377,172 | ||||||||||||
Accumulated deferred income taxes
|
9,036 | 16,592 | 4,494 | 30,122 | ||||||||||||
Other
|
226,808 | 777,244 | (37,846 | ) | 966,206 | |||||||||||
TOTAL
|
6,128,709 | 796,909 | (33,352 | ) | 6,892,266 | |||||||||||
- | ||||||||||||||||
TOTAL ASSETS
|
$ | 34,217,984 | $ | 10,303,516 | $ | (2,497,820 | ) | $ | 42,023,680 | |||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
September 30, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||
CURRENT LIABILITIES
|
||||||||||||||||
Currently maturing long-term debt
|
$ | 771,090 | $ | 16,621 | $ | - | $ | 787,711 | ||||||||
Notes payable:
|
||||||||||||||||
Associated companies
|
- | - | - | - | ||||||||||||
Other
|
201,926 | - | 154,246 | 356,172 | ||||||||||||
Account payable:
|
||||||||||||||||
Associated companies
|
13,321 | 7,771 | (21,092 | ) | - | |||||||||||
Other
|
1,109,781 | 252,441 | 480 | 1,362,702 | ||||||||||||
Customer deposits
|
361,174 | - | - | 361,174 | ||||||||||||
Taxes accrued
|
454,886 | - | (132,026 | ) | 322,860 | |||||||||||
Accumulated deferred income taxes
|
13,624 | 43,952 | 16,114 | 73,690 | ||||||||||||
Interest accrued
|
147,211 | 2,980 | 8,570 | 158,761 | ||||||||||||
Deferred fuel costs
|
127,551 | - | - | 127,551 | ||||||||||||
Obligations under capital leases
|
3,816 | - | - | 3,816 | ||||||||||||
Pension and other postretirement liabilities
|
44,252 | 6,622 | - | 50,874 | ||||||||||||
System agreement cost equalization
|
55,094 | - | - | 55,094 | ||||||||||||
Other
|
92,848 | 167,468 | 3,547 | 263,863 | ||||||||||||
TOTAL
|
3,396,574 | 497,855 | 29,839 | 3,924,268 | ||||||||||||
NON-CURRENT LIABILITIES
|
||||||||||||||||
Accumulated deferred income taxes and taxes accrued
|
6,877,448 | 933,460 | 362,308 | 8,173,216 | ||||||||||||
Accumulated deferred investment tax credits
|
276,413 | - | - | 276,413 | ||||||||||||
Obligations under capital leases
|
35,531 | - | - | 35,531 | ||||||||||||
Other regulatory liabilities
|
965,820 | - | - | 965,820 | ||||||||||||
Decommissioning and retirement cost liabilities
|
1,940,739 | 1,515,946 | - | 3,456,685 | ||||||||||||
Accumulated provisions
|
364,468 | 1,284 | 3,534 | 369,286 | ||||||||||||
Pension and other postretirement liabilities
|
2,365,120 | 686,589 | - | 3,051,709 | ||||||||||||
Long-term debt
|
8,824,916 | 109,034 | 2,814,203 | 11,748,153 | ||||||||||||
Other
|
681,924 | 611,978 | (742,335 | ) | 551,567 | |||||||||||
TOTAL
|
22,332,379 | 3,858,291 | 2,437,710 | 28,628,380 | ||||||||||||
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
|
2,417,644 | 1,448,945 | 1,486,930 | 5,353,519 | ||||||||||||
Retained earnings
|
3,921,206 | 4,061,821 | 1,572,832 | 9,555,859 | ||||||||||||
Accumulated other comprehensive income (loss)
|
(171,597 | ) | 85,509 | (50,705 | ) | (136,793 | ) | |||||||||
Less - treasury stock, at cost (77,080,297 shares in 2012)
|
120,000 | - | 5,464,611 | 5,584,611 | ||||||||||||
Total common shareholders' equity
|
8,208,521 | 5,947,370 | (4,965,369 | ) | 9,190,522 | |||||||||||
Subsidiaries' preferred stock without sinking fund
|
94,000 | - | - | 94,000 | ||||||||||||
TOTAL
|
8,302,521 | 5,947,370 | (4,965,369 | ) | 9,284,522 | |||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 34,217,984 | $ | 10,303,516 | $ | (2,497,820 | ) | $ | 42,023,680 | |||||||
*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:
|
||||||||||||||||
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
|
||||||||||||||||
September 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
|
$ | 5,188 | $ | 10,083 | $ | 257 | $ | 15,528 | ||||||||
Temporary cash investments
|
179,663 | (140,289 | ) | 379 | 39,753 | |||||||||||
Total cash and cash equivalents
|
184,851 | (130,206 | ) | 636 | 55,281 | |||||||||||
Securitization recovery trust account
|
2,036 | - | - | 2,036 | ||||||||||||
Notes receivable
|
- | 5,058 | (5,058 | ) | - | |||||||||||
Accounts receivable:
|
||||||||||||||||
Customer
|
156,805 | (32,341 | ) | - | 124,464 | |||||||||||
Allowance for doubtful accounts
|
(495 | ) | 129 | - | (366 | ) | ||||||||||
Associated companies
|
(17,772 | ) | 36,830 | (19,058 | ) | - | ||||||||||
Other
|
(9,641 | ) | (601 | ) | (905 | ) | (11,147 | ) | ||||||||
Accrued unbilled revenues
|
33,148 | (687 | ) | - | 32,461 | |||||||||||
Total accounts receivable
|
162,045 | 3,330 | (19,963 | ) | 145,412 | |||||||||||
Deferred fuel costs
|
(117,013 | ) | - | - | (117,013 | ) | ||||||||||
Accumulated deferred income taxes
|
(126,674 | ) | (4,655 | ) | 126,006 | (5,323 | ) | |||||||||
Fuel inventory - at average cost
|
8,668 | 395 | - | 9,063 | ||||||||||||
Materials and supplies - at average cost
|
18,418 | 12,027 | - | 30,445 | ||||||||||||
Deferred nuclear refueling outage costs
|
82 | 4,231 | - | 4,313 | ||||||||||||
System agreement cost equalization
|
(19,111 | ) | - | - | (19,111 | ) | ||||||||||
Prepaid taxes
|
- | 88,318 | (88,318 | ) | - | |||||||||||
Prepayments and other
|
104,560 | (24,139 | ) | (477 | ) | 79,944 | ||||||||||
TOTAL
|
217,862 | (45,641 | ) | 12,826 | 185,047 | |||||||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||||||||||
Investment in affiliates - at equity
|
(50,000 | ) | 2,882 | 50,000 | 2,882 | |||||||||||
Decommissioning trust funds
|
204,569 | 183,225 | - | 387,794 | ||||||||||||
Non-utility property - at cost (less accumulated depreciation)
|
(195 | ) | 1,717 | (2,433 | ) | (911 | ) | |||||||||
Other
|
(10,955 | ) | 3,557 | - | (7,398 | ) | ||||||||||
TOTAL
|
143,419 | 191,381 | 47,567 | 382,367 | ||||||||||||
PROPERTY, PLANT, AND EQUIPMENT
|
||||||||||||||||
Electric
|
1,380,598 | (276,965 | ) | 5 | 1,103,638 | |||||||||||
Property under capital lease
|
2,084 | - | - | 2,084 | ||||||||||||
Natural gas
|
7,688 | 1 | - | 7,689 | ||||||||||||
Construction work in progress
|
188,778 | (3,072 | ) | 95 | 185,801 | |||||||||||
Nuclear fuel
|
75,409 | (76,313 | ) | - | (904 | ) | ||||||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
1,654,557 | (356,349 | ) | 100 | 1,298,308 | |||||||||||
Less - accumulated depreciation and amortization
|
476,028 | 7 | 27 | 476,062 | ||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET
|
1,178,529 | (356,356 | ) | 73 | 822,246 | |||||||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||||||||||
Regulatory assets:
|
||||||||||||||||
Regulatory asset for income taxes - net
|
(68,480 | ) | - | - | (68,480 | ) | ||||||||||
Other regulatory assets
|
(49,749 | ) | - | - | (49,749 | ) | ||||||||||
Deferred fuel costs
|
28,916 | - | - | 28,916 | ||||||||||||
Goodwill
|
- | - | - | - | ||||||||||||
Accumulated deferred income taxes
|
4,723 | 7,360 | (964 | ) | 11,119 | |||||||||||
Other
|
28,215 | (26,308 | ) | 8,608 | 10,515 | |||||||||||
TOTAL
|
(56,375 | ) | (18,948 | ) | 7,644 | (67,679 | ) | |||||||||
TOTAL ASSETS
|
$ | 1,483,435 | $ | (229,564 | ) | $ | 68,110 | $ | 1,321,981 | |||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Balance Sheet
|
||||||||||||||||
September 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
|
$ | 525,618 | $ | (10,640 | ) | $ | (1,920,000 | ) | $ | (1,405,022 | ) | |||||
Notes payable:
|
||||||||||||||||
Associated companies
|
- | (138,862 | ) | 138,862 | - | |||||||||||
Other
|
93,595 | - | 154,246 | 247,841 | ||||||||||||
Account payable:
|
||||||||||||||||
Associated companies
|
(1,518 | ) | (29,107 | ) | 30,625 | - | ||||||||||
Other
|
322,265 | (28,222 | ) | (437 | ) | 293,606 | ||||||||||
Customer deposits
|
9,433 | - | - | 9,433 | ||||||||||||
Taxes accrued
|
(114,755 | ) | - | 159,380 | 44,625 | |||||||||||
Accumulated deferred income taxes
|
(40,968 | ) | 1,339 | 13,390 | (26,239 | ) | ||||||||||
Interest accrued
|
(22,499 | ) | 2,490 | (4,742 | ) | (24,751 | ) | |||||||||
Deferred fuel costs
|
(128,288 | ) | - | - | (128,288 | ) | ||||||||||
Obligations under capital leases
|
185 | - | - | 185 | ||||||||||||
Pension and other postretirement liabilities
|
6,394 | 449 | - | 6,843 | ||||||||||||
System agreement cost equalization
|
(24,996 | ) | - | - | (24,996 | ) | ||||||||||
Other
|
(21,235 | ) | 9,191 | (7,624 | ) | (19,668 | ) | |||||||||
TOTAL
|
603,231 | (193,362 | ) | (1,436,300 | ) | (1,026,431 | ) | |||||||||
NON-CURRENT LIABILITIES
|
||||||||||||||||
Accumulated deferred income taxes and taxes accrued
|
197,010 | 109,067 | (229,313 | ) | 76,764 | |||||||||||
Accumulated deferred investment tax credits
|
(8,334 | ) | - | - | (8,334 | ) | ||||||||||
Obligations under capital leases
|
(2,890 | ) | - | - | (2,890 | ) | ||||||||||
Other regulatory liabilities
|
228,417 | - | 9,210 | 237,627 | ||||||||||||
Decommissioning and retirement cost liabilities
|
137,074 | 23,041 | - | 160,115 | ||||||||||||
Accumulated provisions
|
(14,863 | ) | (565 | ) | (798 | ) | (16,226 | ) | ||||||||
Pension and other postretirement liabilities
|
(98,373 | ) | 16,425 | - | (81,948 | ) | ||||||||||
Long-term debt
|
(111,426 | ) | 1,290 | 1,814,576 | 1,704,440 | |||||||||||
Other
|
30,005 | (27,574 | ) | 47,181 | 49,612 | |||||||||||
TOTAL
|
356,620 | 121,684 | 1,640,856 | 2,119,160 | ||||||||||||
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
|
1,010 | (50,461 | ) | 42,288 | (7,163 | ) | ||||||||||
Retained earnings
|
503,377 | (56,471 | ) | (338,007 | ) | 108,899 | ||||||||||
Accumulated other comprehensive income (loss)
|
19,197 | (18,713 | ) | 31,175 | 31,659 | |||||||||||
Less - treasury stock, at cost
|
- | - | (95,857 | ) | (95,857 | ) | ||||||||||
Total common shareholders' equity
|
523,584 | (102,487 | ) | (191,845 | ) | 229,252 | ||||||||||
Subsidiaries' preferred stock without sinking fund
|
- | - | - | - | ||||||||||||
TOTAL
|
523,584 | (102,487 | ) | (191,845 | ) | 229,252 | ||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 1,483,435 | $ | (229,564 | ) | $ | 68,110 | $ | 1,321,981 | |||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Three Months Ended September 30, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 2,321,328 | $ | - | $ | (968 | ) | $ | 2,320,360 | |||||||
Natural gas
|
23,557 | - | - | 23,557 | ||||||||||||
Competitive businesses
|
- | 626,849 | (7,206 | ) | 619,643 | |||||||||||
Total
|
2,344,885 | 626,849 | (8,174 | ) | 2,963,560 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
500,218 | 96,479 | (427 | ) | 596,270 | |||||||||||
Purchased power
|
312,429 | 35,293 | (11,170 | ) | 336,552 | |||||||||||
Nuclear refueling outage expenses
|
29,714 | 32,868 | - | 62,582 | ||||||||||||
Other operation and maintenance
|
518,830 | 244,947 | 1,465 | 765,242 | ||||||||||||
Decommissioning
|
27,657 | 29,139 | - | 56,796 | ||||||||||||
Taxes other than income taxes
|
119,676 | 29,096 | 277 | 149,049 | ||||||||||||
Depreciation and amortization
|
251,099 | 29,583 | 1,058 | 281,740 | ||||||||||||
Other regulatory charges (credits) - net
|
24,477 | - | - | 24,477 | ||||||||||||
Total
|
1,784,100 | 497,405 | (8,797 | ) | 2,272,708 | |||||||||||
OPERATING INCOME
|
560,785 | 129,444 | 623 | 690,852 | ||||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
18,396 | - | - | 18,396 | ||||||||||||
Interest and investment income
|
35,772 | 29,606 | (40,888 | ) | 24,490 | |||||||||||
Miscellaneous - net
|
(4,451 | ) | (3,038 | ) | (3,279 | ) | (10,768 | ) | ||||||||
Total
|
49,717 | 26,568 | (44,167 | ) | 32,118 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
130,331 | 3,093 | 22,376 | 155,800 | ||||||||||||
Allowance for borrowed funds used during construction
|
(8,003 | ) | - | - | (8,003 | ) | ||||||||||
Total
|
122,328 | 3,093 | 22,376 | 147,797 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
488,174 | 152,919 | (65,920 | ) | 575,173 | |||||||||||
Income taxes
|
187,668 | 34,153 | 10,682 | 232,503 | ||||||||||||
CONSOLIDATED NET INCOME
|
300,506 | 118,766 | (76,602 | ) | 342,670 | |||||||||||
Preferred dividend requirements of subsidiaries
|
4,332 | - | 1,250 | 5,582 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 296,174 | $ | 118,766 | $ | (77,852 | ) | $ | 337,088 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 1.67 | $ | 0.67 | $ | (0.44 | ) | $ | 1.90 | |||||||
DILUTED
|
$ | 1.66 | $ | 0.67 | $ | (0.44 | ) | $ | 1.89 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
177,517,846 | |||||||||||||||
DILUTED
|
177,975,075 | |||||||||||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Three Months Ended September 30, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 2,734,192 | $ | - | $ | (591 | ) | $ | 2,733,601 | |||||||
Natural gas
|
26,439 | - | - | 26,439 | ||||||||||||
Competitive businesses
|
- | 641,216 | (5,703 | ) | 635,513 | |||||||||||
Total
|
2,760,631 | 641,216 | (6,294 | ) | 3,395,553 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
769,546 | 80,557 | (121 | ) | 849,982 | |||||||||||
Purchased power
|
468,696 | 18,861 | (12,223 | ) | 475,335 | |||||||||||
Nuclear refueling outage expenses
|
26,602 | 37,965 | - | 64,566 | ||||||||||||
Other operation and maintenance
|
477,866 | 228,888 | 2,067 | 708,821 | ||||||||||||
Decommissioning
|
27,327 | 29,140 | - | 56,467 | ||||||||||||
Taxes other than income taxes
|
121,924 | 29,713 | 408 | 152,044 | ||||||||||||
Depreciation and amortization
|
237,197 | 45,247 | 1,137 | 283,581 | ||||||||||||
Other regulatory charges (credits) - net
|
203,848 | - | - | 203,848 | ||||||||||||
Total
|
2,333,006 | 470,371 | (8,732 | ) | 2,794,644 | |||||||||||
OPERATING INCOME
|
427,625 | 170,845 | 2,438 | 600,909 | ||||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
21,516 | - | - | 21,516 | ||||||||||||
Interest and investment income
|
40,742 | 33,611 | (41,114 | ) | 33,238 | |||||||||||
Miscellaneous - net
|
(7,254 | ) | (4,196 | ) | (2,686 | ) | (14,137 | ) | ||||||||
Total
|
55,004 | 29,415 | (43,800 | ) | 40,617 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
122,556 | 5,319 | 9,427 | 137,301 | ||||||||||||
Allowance for borrowed funds used during construction
|
(9,713 | ) | - | - | (9,713 | ) | ||||||||||
Total
|
112,843 | 5,319 | 9,427 | 127,588 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
369,786 | 194,941 | (50,789 | ) | 513,938 | |||||||||||
Income taxes
|
(158,673 | ) | 64,079 | (24,537 | ) | (119,131 | ) | |||||||||
CONSOLIDATED NET INCOME
|
528,459 | 130,862 | (26,252 | ) | 633,069 | |||||||||||
Preferred dividend requirements of subsidiaries
|
4,332 | 683 | - | 5,015 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 524,127 | $ | 130,179 | $ | (26,252 | ) | $ | 628,054 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 2.96 | $ | 0.74 | $ | (0.15 | ) | $ | 3.55 | |||||||
DILUTED
|
$ | 2.95 | $ | 0.73 | $ | (0.15 | ) | $ | 3.53 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
176,950,469 | |||||||||||||||
DILUTED
|
177,723,020 | |||||||||||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Three Months Ended September 30, 2012 vs. 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | (412,864 | ) | $ | - | $ | (377 | ) | $ | (413,241 | ) | |||||
Natural gas
|
(2,882 | ) | - | - | (2,882 | ) | ||||||||||
Competitive businesses
|
- | (14,367 | ) | (1,503 | ) | (15,870 | ) | |||||||||
Total
|
(415,746 | ) | (14,367 | ) | (1,880 | ) | (431,993 | ) | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
(269,328 | ) | 15,922 | (306 | ) | (253,712 | ) | |||||||||
Purchased power
|
(156,267 | ) | 16,432 | 1,053 | (138,783 | ) | ||||||||||
Nuclear refueling outage expenses
|
3,112 | (5,097 | ) | - | (1,984 | ) | ||||||||||
Other operation and maintenance
|
40,964 | 16,059 | (602 | ) | 56,421 | |||||||||||
Decommissioning
|
330 | (1 | ) | - | 329 | |||||||||||
Taxes other than income taxes
|
(2,248 | ) | (617 | ) | (131 | ) | (2,995 | ) | ||||||||
Depreciation and amortization
|
13,902 | (15,664 | ) | (79 | ) | (1,841 | ) | |||||||||
Other regulatory charges (credits )- net
|
(179,371 | ) | - | - | (179,371 | ) | ||||||||||
Total
|
(548,906 | ) | 27,034 | (65 | ) | (521,936 | ) | |||||||||
OPERATING INCOME
|
133,160 | (41,401 | ) | (1,815 | ) | 89,943 | ||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
(3,120 | ) | - | - | (3,120 | ) | ||||||||||
Interest and investment income
|
(4,970 | ) | (4,005 | ) | 226 | (8,748 | ) | |||||||||
Miscellaneous - net
|
2,803 | 1,158 | (593 | ) | 3,369 | |||||||||||
Total
|
(5,287 | ) | (2,847 | ) | (367 | ) | (8,499 | ) | ||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
7,775 | (2,226 | ) | 12,949 | 18,499 | |||||||||||
Allowance for borrowed funds used during construction
|
1,710 | - | - | 1,710 | ||||||||||||
Total
|
9,485 | (2,226 | ) | 12,949 | 20,209 | |||||||||||
INCOME BEFORE INCOME TAXES
|
118,388 | (42,022 | ) | (15,131 | ) | 61,235 | ||||||||||
Income taxes
|
346,341 | (29,926 | ) | 35,219 | 351,634 | |||||||||||
CONSOLIDATED NET INCOME
|
(227,953 | ) | (12,096 | ) | (50,350 | ) | (290,399 | ) | ||||||||
Preferred dividend requirements of subsidiaries
|
- | (683 | ) | 1,250 | 567 | |||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | (227,953 | ) | $ | (11,413 | ) | $ | (51,600 | ) | $ | (290,966 | ) | ||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | (1.29 | ) | $ | (0.07 | ) | $ | (0.29 | ) | $ | (1.65 | ) | ||||
DILUTED
|
$ | (1.29 | ) | $ | (0.06 | ) | $ | (0.29 | ) | $ | (1.64 | ) | ||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Nine Months Ended September 30, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 6,042,658 | $ | - | $ | (2,906 | ) | $ | 6,039,752 | |||||||
Natural gas
|
93,444 | - | - | 93,444 | ||||||||||||
Competitive businesses
|
- | 1,754,774 | (22,150 | ) | 1,732,624 | |||||||||||
Total
|
6,136,102 | 1,754,774 | (25,056 | ) | 7,865,820 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
1,304,446 | 269,226 | (1,407 | ) | 1,572,265 | |||||||||||
Purchased power
|
903,977 | 94,978 | (32,140 | ) | 966,816 | |||||||||||
Nuclear refueling outage expenses
|
81,513 | 102,775 | - | 184,288 | ||||||||||||
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
Other operation and maintenance
|
1,531,007 | 725,869 | 2,882 | 2,259,758 | ||||||||||||
Decommissioning
|
84,576 | 42,065 | - | 126,641 | ||||||||||||
Taxes other than income taxes
|
333,916 | 89,510 | 903 | 424,329 | ||||||||||||
Depreciation and amortization
|
704,741 | 128,724 | 3,246 | 836,711 | ||||||||||||
Other regulatory charges (credits) - net
|
162,509 | - | - | 162,509 | ||||||||||||
Total
|
5,106,685 | 1,808,671 | (26,516 | ) | 6,888,841 | |||||||||||
OPERATING INCOME
|
1,029,417 | (53,897 | ) | 1,460 | 976,979 | |||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
70,986 | - | - | 70,986 | ||||||||||||
Interest and investment income
|
113,063 | 107,041 | (125,337 | ) | 94,767 | |||||||||||
Miscellaneous - net
|
(19,224 | ) | (15,563 | ) | (7,008 | ) | (41,794 | ) | ||||||||
Total
|
164,825 | 91,478 | (132,345 | ) | 123,959 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
382,961 | 16,047 | 53,154 | 452,162 | ||||||||||||
Allowance for borrowed funds used during construction
|
(27,877 | ) | - | - | (27,877 | ) | ||||||||||
Total
|
355,084 | 16,047 | 53,154 | 424,285 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
839,158 | 21,534 | (184,039 | ) | 676,653 | |||||||||||
Income taxes
|
162,914 | (10,036 | ) | (42,738 | ) | 110,140 | ||||||||||
CONSOLIDATED NET INCOME
|
676,244 | 31,570 | (141,301 | ) | 566,513 | |||||||||||
Preferred dividend requirements of subsidiaries
|
12,997 | - | 3,111 | 16,108 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 663,247 | $ | 31,570 | $ | (144,412 | ) | $ | 550,405 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 3.74 | $ | 0.18 | $ | (0.81 | ) | $ | 3.11 | |||||||
DILUTED
|
$ | 3.73 | $ | 0.18 | $ | (0.81 | ) | $ | 3.10 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
177,184,464 | |||||||||||||||
DILUTED
|
177,636,549 | |||||||||||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Nine Months Ended September 30, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 6,813,271 | $ | - | $ | (1,733 | ) | $ | 6,811,538 | |||||||
Natural gas
|
126,453 | - | - | 126,453 | ||||||||||||
Competitive businesses
|
- | 1,819,439 | (17,389 | ) | 1,802,050 | |||||||||||
Total
|
6,939,724 | 1,819,439 | (19,122 | ) | 8,740,041 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
1,694,393 | 227,072 | (458 | ) | 1,921,007 | |||||||||||
Purchased power
|
1,269,350 | 51,855 | (32,025 | ) | 1,289,180 | |||||||||||
Nuclear refueling outage expenses
|
78,433 | 113,084 | - | 191,517 | ||||||||||||
Asset impairment
|
- | - | - | - | ||||||||||||
Other operation and maintenance
|
1,410,693 | 669,383 | (3,010 | ) | 2,077,066 | |||||||||||
Decommissioning
|
81,368 | 85,861 | - | 167,229 | ||||||||||||
Taxes other than income taxes
|
330,232 | 75,213 | 1,048 | 406,493 | ||||||||||||
Depreciation and amortization
|
676,680 | 132,655 | 3,337 | 812,672 | ||||||||||||
Other regulatory charges (credits) - net
|
204,338 | - | - | 204,338 | ||||||||||||
Total
|
5,745,487 | 1,355,123 | (31,108 | ) | 7,069,502 | |||||||||||
OPERATING INCOME
|
1,194,237 | 464,316 | 11,986 | 1,670,539 | ||||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
59,558 | - | - | 59,558 | ||||||||||||
Interest and investment income
|
121,419 | 97,495 | (123,008 | ) | 95,906 | |||||||||||
Miscellaneous - net
|
(17,255 | ) | (14,115 | ) | (9,128 | ) | (40,498 | ) | ||||||||
Total
|
163,722 | 83,380 | (132,136 | ) | 114,966 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
364,935 | 14,701 | 29,848 | 409,484 | ||||||||||||
Allowance for borrowed funds used during construction
|
(27,397 | ) | - | - | (27,397 | ) | ||||||||||
Total
|
337,538 | 14,701 | 29,848 | 382,087 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
1,020,421 | 532,995 | (149,998 | ) | 1,403,418 | |||||||||||
Income taxes
|
70,567 | 213,344 | (87,839 | ) | 196,072 | |||||||||||
CONSOLIDATED NET INCOME
|
949,854 | 319,651 | (62,159 | ) | 1,207,346 | |||||||||||
Preferred dividend requirements of subsidiaries
|
12,997 | 2,049 | - | 15,046 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 936,857 | $ | 317,602 | $ | (62,159 | ) | $ | 1,192,300 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 5.26 | $ | 1.79 | $ | (0.35 | ) | $ | 6.70 | |||||||
DILUTED
|
$ | 5.24 | $ | 1.78 | $ | (0.35 | ) | $ | 6.67 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
177,857,667 | |||||||||||||||
DILUTED
|
178,805,215 | |||||||||||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Nine Months Ended September 30, 2012 vs. 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | (770,613 | ) | $ | - | $ | (1,173 | ) | $ | (771,786 | ) | |||||
Natural gas
|
(33,009 | ) | - | - | (33,009 | ) | ||||||||||
Competitive businesses
|
- | (64,665 | ) | (4,761 | ) | (69,426 | ) | |||||||||
Total
|
(803,622 | ) | (64,665 | ) | (5,934 | ) | (874,221 | ) | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
(389,947 | ) | 42,154 | (949 | ) | (348,742 | ) | |||||||||
Purchased power
|
(365,373 | ) | 43,123 | (115 | ) | (322,364 | ) | |||||||||
Nuclear refueling outage expenses
|
3,080 | (10,309 | ) | - | (7,229 | ) | ||||||||||
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
Other operation and maintenance
|
120,314 | 56,486 | 5,892 | 182,692 | ||||||||||||
Decommissioning
|
3,208 | (43,796 | ) | - | (40,588 | ) | ||||||||||
Taxes other than income taxes
|
3,684 | 14,297 | (145 | ) | 17,836 | |||||||||||
Depreciation and amortization
|
28,061 | (3,931 | ) | (91 | ) | 24,039 | ||||||||||
Other regulatory charges (credits )- net
|
(41,829 | ) | - | - | (41,829 | ) | ||||||||||
Total
|
(638,802 | ) | 453,548 | 4,592 | (180,661 | ) | ||||||||||
OPERATING INCOME
|
(164,820 | ) | (518,213 | ) | (10,526 | ) | (693,560 | ) | ||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
11,428 | - | - | 11,428 | ||||||||||||
Interest and investment income
|
(8,356 | ) | 9,546 | (2,329 | ) | (1,139 | ) | |||||||||
Miscellaneous - net
|
(1,969 | ) | (1,448 | ) | 2,120 | (1,296 | ) | |||||||||
Total
|
1,103 | 8,098 | (209 | ) | 8,993 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
18,026 | 1,346 | 23,306 | 42,678 | ||||||||||||
Allowance for borrowed funds used during construction
|
(480 | ) | - | - | (480 | ) | ||||||||||
Total
|
17,546 | 1,346 | 23,306 | 42,198 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
(181,263 | ) | (511,461 | ) | (34,041 | ) | (726,765 | ) | ||||||||
Income taxes
|
92,347 | (223,380 | ) | 45,101 | (85,932 | ) | ||||||||||
CONSOLIDATED NET INCOME
|
(273,610 | ) | (288,081 | ) | (79,142 | ) | (640,833 | ) | ||||||||
Preferred dividend requirements of subsidiaries
|
- | (2,049 | ) | 3,111 | 1,062 | |||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | (273,610 | ) | $ | (286,032 | ) | $ | (82,253 | ) | $ | (641,895 | ) | ||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | (1.52 | ) | $ | (1.61 | ) | $ | (0.46 | ) | $ | (3.59 | ) | ||||
DILUTED
|
$ | (1.51 | ) | $ | (1.60 | ) | $ | (0.46 | ) | $ | (3.57 | ) | ||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Twelve Months Ended September 30, 2012
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 7,905,395 | $ | - | $ | (3,664 | ) | $ | 7,901,731 | |||||||
Natural gas
|
132,809 | - | - | 132,809 | ||||||||||||
Competitive businesses
|
- | 2,349,108 | (28,796 | ) | 2,320,312 | |||||||||||
Total
|
8,038,204 | 2,349,108 | (32,460 | ) | 10,354,852 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
1,793,612 | 352,070 | (1,711 | ) | 2,143,971 | |||||||||||
Purchased power
|
1,182,903 | 102,095 | (42,395 | ) | 1,242,603 | |||||||||||
Nuclear refueling outage expenses
|
108,081 | 140,308 | - | 248,389 | ||||||||||||
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
Other operation and maintenance
|
2,070,878 | 961,958 | 17,616 | 3,050,452 | ||||||||||||
Decommissioning
|
112,352 | 37,654 | - | 150,006 | ||||||||||||
Taxes other than income taxes
|
435,303 | 117,258 | 1,301 | 553,862 | ||||||||||||
Depreciation and amortization
|
946,514 | 175,259 | 4,469 | 1,126,242 | ||||||||||||
Other regulatory charges (credits) - net
|
164,129 | - | - | 164,129 | ||||||||||||
Total
|
6,813,772 | 2,242,126 | (20,720 | ) | 9,035,178 | |||||||||||
Gain on sale of business
|
- | - | - | - | ||||||||||||
OPERATING INCOME
|
1,224,432 | 106,982 | (11,740 | ) | 1,319,674 | |||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
95,733 | - | - | 95,733 | ||||||||||||
Interest and investment income
|
150,381 | 145,942 | (168,467 | ) | 127,856 | |||||||||||
Miscellaneous - net
|
(27,347 | ) | (25,084 | ) | (8,136 | ) | (60,567 | ) | ||||||||
Total
|
218,767 | 120,858 | (176,603 | ) | 163,022 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
511,659 | 21,980 | 60,559 | 594,198 | ||||||||||||
Allowance for borrowed funds used during construction
|
(38,373 | ) | - | - | (38,373 | ) | ||||||||||
Total
|
473,286 | 21,980 | 60,559 | 555,825 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
969,913 | 205,860 | (248,902 | ) | 926,871 | |||||||||||
Income taxes
|
119,657 | 2,085 | 78,589 | 200,331 | ||||||||||||
CONSOLIDATED NET INCOME
|
850,256 | 203,775 | (327,491 | ) | 726,540 | |||||||||||
Preferred dividend requirements of subsidiaries
|
17,329 | 1,196 | 3,470 | 21,995 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 832,927 | $ | 202,579 | $ | (330,961 | ) | $ | 704,545 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 4.71 | $ | 1.14 | $ | (1.87 | ) | $ | 3.98 | |||||||
DILUTED
|
$ | 4.69 | $ | 1.14 | $ | (1.86 | ) | $ | 3.97 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
176,927,393 | |||||||||||||||
DILUTED
|
177,560,181 | |||||||||||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Twelve Months Ended September 30, 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 8,694,708 | $ | - | $ | (2,324 | ) | $ | 8,692,383 | |||||||
Natural gas
|
169,685 | - | - | 169,685 | ||||||||||||
Competitive businesses
|
- | 2,431,202 | (20,126 | ) | 2,411,076 | |||||||||||
Total
|
8,864,393 | 2,431,202 | (22,450 | ) | 11,273,144 | |||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
2,205,197 | 296,061 | (747 | ) | 2,500,512 | |||||||||||
Purchased power
|
1,548,137 | 62,781 | (38,376 | ) | 1,572,541 | |||||||||||
Nuclear refueling outage expenses
|
105,143 | 151,102 | - | 256,245 | ||||||||||||
Asset impairment
|
- | - | - | - | ||||||||||||
Other operation and maintenance
|
1,937,845 | 906,680 | (9,439 | ) | 2,835,086 | |||||||||||
Decommissioning
|
108,084 | 113,458 | - | 221,542 | ||||||||||||
Taxes other than income taxes
|
438,647 | 100,761 | 786 | 540,194 | ||||||||||||
Depreciation and amortization
|
913,304 | 175,329 | 4,542 | 1,093,174 | ||||||||||||
Other regulatory charges (credits) - net
|
233,704 | - | - | 233,704 | ||||||||||||
Total
|
7,490,061 | 1,806,172 | (43,234 | ) | 9,252,998 | |||||||||||
Gain on sale of business
|
- | 44,173 | - | 44,173 | ||||||||||||
OPERATING INCOME
|
1,374,332 | 669,203 | 20,784 | 2,064,319 | ||||||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
72,949 | - | - | 72,949 | ||||||||||||
Interest and investment income
|
185,011 | 135,923 | (162,820 | ) | 158,114 | |||||||||||
Miscellaneous - net
|
(26,057 | ) | (19,107 | ) | (11,408 | ) | (56,571 | ) | ||||||||
Total
|
231,903 | 116,816 | (174,228 | ) | 174,492 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
495,664 | 19,389 | 41,123 | 556,177 | ||||||||||||
Allowance for borrowed funds used during construction
|
(35,102 | ) | - | - | (35,102 | ) | ||||||||||
Total
|
460,562 | 19,389 | 41,123 | 521,075 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
1,145,673 | 766,630 | (194,567 | ) | 1,717,736 | |||||||||||
Income taxes
|
77,186 | 296,377 | (96,479 | ) | 277,084 | |||||||||||
CONSOLIDATED NET INCOME
|
1,068,487 | 470,253 | (98,088 | ) | 1,440,652 | |||||||||||
Preferred dividend requirements of subsidiaries
|
17,329 | 2,732 | - | 20,061 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 1,051,158 | $ | 467,521 | $ | (98,088 | ) | $ | 1,420,591 | |||||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | 5.89 | $ | 2.62 | $ | (0.55 | ) | $ | 7.96 | |||||||
DILUTED
|
$ | 5.86 | $ | 2.60 | $ | (0.55 | ) | $ | 7.91 | |||||||
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:
|
||||||||||||||||
BASIC
|
178,448,041 | |||||||||||||||
DILUTED
|
179,551,490 | |||||||||||||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||||||
Consolidating Income Statement
|
||||||||||||||||
Twelve Months Ended September 30, 2012 vs. 2011
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Utility
|
Entergy Wholesale Commodities
|
Parent & Other
|
Consolidated
|
|||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | (789,313 | ) | $ | - | $ | (1,340 | ) | $ | (790,652 | ) | |||||
Natural gas
|
(36,876 | ) | - | - | (36,876 | ) | ||||||||||
Competitive businesses
|
- | (82,094 | ) | (8,670 | ) | (90,764 | ) | |||||||||
Total
|
(826,189 | ) | (82,094 | ) | (10,010 | ) | (918,292 | ) | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel related expenses, and gas purchased for resale
|
(411,585 | ) | 56,009 | (964 | ) | (356,541 | ) | |||||||||
Purchased power
|
(365,234 | ) | 39,314 | (4,019 | ) | (329,938 | ) | |||||||||
Nuclear refueling outage expenses
|
2,938 | (10,794 | ) | - | (7,856 | ) | ||||||||||
Asset impairment
|
- | 355,524 | - | 355,524 | ||||||||||||
Other operation and maintenance
|
133,033 | 55,278 | 27,055 | 215,366 | ||||||||||||
Decommissioning
|
4,268 | (75,804 | ) | - | (71,536 | ) | ||||||||||
Taxes other than income taxes
|
(3,344 | ) | 16,497 | 515 | 13,668 | |||||||||||
Depreciation and amortization
|
33,210 | (70 | ) | (73 | ) | 33,068 | ||||||||||
Other regulatory charges (credits )- net
|
(69,575 | ) | - | - | (69,575 | ) | ||||||||||
Total
|
(676,289 | ) | 435,954 | 22,514 | (217,820 | ) | ||||||||||
Gain on sale of business
|
- | (44,173 | ) | - | (44,173 | ) | ||||||||||
OPERATING INCOME
|
(149,900 | ) | (562,221 | ) | (32,524 | ) | (744,645 | ) | ||||||||
OTHER INCOME (DEDUCTIONS)
|
||||||||||||||||
Allowance for equity funds used during construction
|
22,784 | - | - | 22,784 | ||||||||||||
Interest and investment income
|
(34,630 | ) | 10,019 | (5,647 | ) | (30,258 | ) | |||||||||
Miscellaneous - net
|
(1,290 | ) | (5,977 | ) | 3,272 | (3,996 | ) | |||||||||
Total
|
(13,136 | ) | 4,042 | (2,375 | ) | (11,470 | ) | |||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
15,995 | 2,591 | 19,436 | 38,021 | ||||||||||||
Allowance for borrowed funds used during construction
|
(3,271 | ) | - | - | (3,271 | ) | ||||||||||
Total
|
12,724 | 2,591 | 19,436 | 34,750 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
(175,760 | ) | (560,770 | ) | (54,335 | ) | (790,865 | ) | ||||||||
Income taxes
|
42,471 | (294,292 | ) | 175,068 | (76,753 | ) | ||||||||||
CONSOLIDATED NET INCOME
|
(218,231 | ) | (266,478 | ) | (229,403 | ) | (714,112 | ) | ||||||||
Preferred dividend requirements of subsidiaries
|
- | (1,536 | ) | 3,470 | 1,934 | |||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | (218,231 | ) | $ | (264,942 | ) | $ | (232,873 | ) | $ | (716,046 | ) | ||||
EARNINGS PER AVERAGE COMMON SHARE:
|
||||||||||||||||
BASIC
|
$ | (1.18 | ) | $ | (1.48 | ) | $ | (1.32 | ) | $ | (3.98 | ) | ||||
DILUTED
|
$ | (1.17 | ) | $ | (1.46 | ) | $ | (1.31 | ) | $ | (3.94 | ) | ||||
*Totals may not foot due to rounding.
|
Entergy Corporation
|
||||||||||||
Consolidated Cash Flow Statement
|
||||||||||||
Three Months Ended September 30, 2012 vs. 2011
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
(Unaudited)
|
||||||||||||
2012
|
2011
|
Variance
|
||||||||||
OPERATING ACTIVITIES
|
||||||||||||
Consolidated net income
|
$ | 342,670 | $ | 633,069 | $ | (290,399 | ) | |||||
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
provided by operating activities:
|
||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
461,005 | 463,702 | (2,697 | ) | ||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
233,885 | (311,100 | ) | 544,985 | ||||||||
Changes in working capital:
|
||||||||||||
Receivables
|
(109,830 | ) | (45,271 | ) | (64,559 | ) | ||||||
Fuel inventory
|
10,159 | 18,134 | (7,975 | ) | ||||||||
Accounts payable
|
135,257 | (162,076 | ) | 297,333 | ||||||||
Prepaid taxes and taxes accrued
|
57,071 | 248,052 | (190,981 | ) | ||||||||
Interest accrued
|
(17,774 | ) | (13,903 | ) | (3,871 | ) | ||||||
Deferred fuel
|
(46,101 | ) | 78,571 | (124,672 | ) | |||||||
Other working capital accounts
|
(22,933 | ) | 81,067 | (104,000 | ) | |||||||
Changes in provisions for estimated losses
|
1,788 | 1,346 | 442 | |||||||||
Changes in other regulatory assets
|
(64,395 | ) | 154,198 | (218,593 | ) | |||||||
Changes in pensions and other postretirement liabilities
|
(40,563 | ) | (43,384 | ) | 2,821 | |||||||
Other
|
91,630 | 50,102 | 41,528 | |||||||||
Net cash flow provided by operating activities
|
1,031,869 | 1,152,507 | (120,638 | ) | ||||||||
INVESTING ACTIVITIES
|
||||||||||||
Construction/capital expenditures
|
(606,180 | ) | (469,375 | ) | (136,805 | ) | ||||||
Allowance for equity funds used during construction
|
19,080 | 22,415 | (3,335 | ) | ||||||||
Nuclear fuel purchases
|
(172,108 | ) | (72,250 | ) | (99,858 | ) | ||||||
Proceeds from sale of assets and businesses
|
- | 6,531 | (6,531 | ) | ||||||||
Changes in securitization account
|
(14,912 | ) | (9,549 | ) | (5,363 | ) | ||||||
Payments to storm reserve escrow account
|
(4,022 | ) | (1,749 | ) | (2,273 | ) | ||||||
Receipts from storm reserve escrow account
|
- | - | - | |||||||||
Decrease (increase) in other investments
|
(107,071 | ) | (17,699 | ) | (89,372 | ) | ||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
|
98,872 | - | 98,872 | |||||||||
Proceeds from nuclear decommissioning trust fund sales
|
471,864 | 416,730 | 55,134 | |||||||||
Investment in nuclear decommissioning trust funds
|
(508,544 | ) | (442,834 | ) | (65,710 | ) | ||||||
Net cash flow used in investing activities
|
(823,021 | ) | (567,780 | ) | (255,241 | ) | ||||||
FINANCING ACTIVITIES
|
||||||||||||
Proceeds from the issuance of:
|
||||||||||||
Long-term debt
|
964,332 | 460,454 | 503,878 | |||||||||
Treasury stock
|
21,974 | 15,931 | 6,043 | |||||||||
Retirement of long-term debt
|
(829,090 | ) | (391,461 | ) | (437,629 | ) | ||||||
Repurchase of common stock
|
- | (75,030 | ) | 75,030 | ||||||||
Changes in credit borrowings - net
|
252,460 | 14,076 | 238,384 | |||||||||
Dividends paid:
|
||||||||||||
Common stock
|
(147,551 | ) | (146,935 | ) | (616 | ) | ||||||
Preferred stock
|
(4,332 | ) | (5,015 | ) | 683 | |||||||
Net cash flow provided by (used in) financing activities
|
257,793 | (127,980 | ) | 385,773 | ||||||||
Effect of exchange rates on cash and cash equivalents
|
(315 | ) | 535 | (850 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
466,326 | 457,282 | 9,044 | |||||||||
Cash and cash equivalents at beginning of period
|
283,393 | 529,858 | (246,465 | ) | ||||||||
Cash and cash equivalents at end of period
|
$ | 749,719 | $ | 987,140 | $ | (237,421 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash paid (received) during the period for:
|
||||||||||||
Interest - net of amount capitalized
|
$ | 168,525 | $ | 146,032 | $ | 22,493 | ||||||
Income taxes
|
$ | 222 | $ | (88 | ) | $ | 310 | |||||
Entergy Corporation
|
||||||||||||
Consolidated Cash Flow Statement
|
||||||||||||
Nine Months Ended September 30, 2012 vs. 2011
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
(Unaudited)
|
||||||||||||
2012
|
2011
|
Variance
|
||||||||||
OPERATING ACTIVITIES
|
||||||||||||
Consolidated net income
|
$ | 566,513 | $ | 1,207,346 | $ | (640,833 | ) | |||||
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
provided by operating activities:
|
||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
1,293,667 | 1,315,730 | (22,063 | ) | ||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
111,228 | (5,979 | ) | 117,207 | ||||||||
Asset impairment
|
355,524 | - | 355,524 | |||||||||
Changes in working capital:
|
||||||||||||
Receivables
|
(162,015 | ) | (213,524 | ) | 51,509 | |||||||
Fuel inventory
|
(9,063 | ) | 12,677 | (21,740 | ) | |||||||
Accounts payable
|
143,596 | (238,879 | ) | 382,475 | ||||||||
Prepaid taxes and taxes accrued
|
44,625 | 245,242 | (200,617 | ) | ||||||||
Interest accrued
|
(24,752 | ) | (53,307 | ) | 28,555 | |||||||
Deferred fuel
|
(40,192 | ) | (119,481 | ) | 79,289 | |||||||
Other working capital accounts
|
(131,374 | ) | (31,319 | ) | (100,055 | ) | ||||||
Changes in provisions for estimated losses
|
(17,479 | ) | (4,608 | ) | (12,871 | ) | ||||||
Changes in other regulatory assets
|
49,250 | 250,747 | (201,497 | ) | ||||||||
Changes in pensions and other postretirement liabilities
|
(75,104 | ) | (275,690 | ) | 200,586 | |||||||
Other
|
115,364 | 40,801 | 74,563 | |||||||||
Net cash flow provided by operating activities
|
2,219,788 | 2,129,756 | 90,032 | |||||||||
INVESTING ACTIVITIES
|
||||||||||||
Construction/capital expenditures
|
(1,868,690 | ) | (1,460,668 | ) | (408,022 | ) | ||||||
Allowance for equity funds used during construction
|
73,497 | 61,096 | 12,401 | |||||||||
Nuclear fuel purchases
|
(412,912 | ) | (475,418 | ) | 62,506 | |||||||
Payment for purchase of plant
|
(645 | ) | (299,590 | ) | 298,945 | |||||||
Proceeds from sale of assets and businesses
|
- | 6,531 | (6,531 | ) | ||||||||
Changes in securitization account
|
(2,036 | ) | (443 | ) | (1,593 | ) | ||||||
NYPA value sharing payment
|
(72,000 | ) | (72,000 | ) | - | |||||||
Payments to storm reserve escrow account
|
(7,009 | ) | (5,043 | ) | (1,966 | ) | ||||||
Receipts from storm reserve escrow account
|
17,884 | - | 17,884 | |||||||||
Decrease (increase) in other investments
|
(69,995 | ) | (60,693 | ) | (9,302 | ) | ||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
|
109,105 | - | 109,105 | |||||||||
Proceeds from nuclear decommissioning trust fund sales
|
1,416,697 | 1,053,089 | 363,608 | |||||||||
Investment in nuclear decommissioning trust funds
|
(1,507,123 | ) | (1,142,364 | ) | (364,759 | ) | ||||||
Net cash flow used in investing activities
|
(2,323,227 | ) | (2,395,503 | ) | 72,276 | |||||||
FINANCING ACTIVITIES
|
||||||||||||
Proceeds from the issuance of:
|
||||||||||||
Long-term debt
|
2,289,494 | 1,535,634 | 753,860 | |||||||||
Preferred stock
|
51,000 | - | 51,000 | |||||||||
Treasury stock
|
56,602 | 32,889 | 23,713 | |||||||||
Retirement of long-term debt
|
(2,029,016 | ) | (947,401 | ) | (1,081,615 | ) | ||||||
Repurchase of common stock
|
- | (234,632 | ) | 234,632 | ||||||||
Changes in credit borrowings - net
|
247,845 | 30,036 | 217,809 | |||||||||
Dividends paid:
|
||||||||||||
Common stock
|
(441,292 | ) | (443,290 | ) | 1,998 | |||||||
Preferred stock
|
(15,497 | ) | (15,046 | ) | (451 | ) | ||||||
Net cash flow provided by (used in) financing activities
|
159,136 | (41,810 | ) | 200,946 | ||||||||
Effect of exchange rates on cash and cash equivalents
|
(416 | ) | 225 | (641 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
55,281 | (307,332 | ) | 362,613 | ||||||||
Cash and cash equivalents at beginning of period
|
694,438 | 1,294,472 | (600,034 | ) | ||||||||
Cash and cash equivalents at end of period
|
$ | 749,719 | $ | 987,140 | $ | (237,421 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash paid (received) during the period for:
|
||||||||||||
Interest - net of amount capitalized
|
$ | 422,142 | $ | 413,525 | $ | 8,617 | ||||||
Income taxes
|
$ | 42,472 | $ | (11 | ) | $ | 42,483 | |||||
Entergy Corporation
|
||||||||||||
Consolidated Cash Flow Statement
|
||||||||||||
Twelve Months Ended September 30, 2012 vs. 2011
|
||||||||||||
(Dollars in thousands)
|
||||||||||||
(Unaudited)
|
||||||||||||
2012
|
2011
|
Variance
|
||||||||||
OPERATING ACTIVITIES
|
||||||||||||
Consolidated net income
|
$ | 726,540 | $ | 1,440,652 | $ | (714,112 | ) | |||||
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||||||
provided by operating activities:
|
||||||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
1,723,392 | 1,761,518 | (38,126 | ) | ||||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
(162,822 | ) | 188,649 | (351,471 | ) | |||||||
Asset impairment
|
355,524 | - | 355,524 | |||||||||
Gain on sale of business
|
- | (44,173 | ) | 44,173 | ||||||||
Changes in working capital:
|
||||||||||||
Receivables
|
79,600 | (69,838 | ) | 149,438 | ||||||||
Fuel inventory
|
(16,347 | ) | (1,316 | ) | (15,031 | ) | ||||||
Accounts payable
|
250,505 | (66,592 | ) | 317,097 | ||||||||
Prepaid taxes and taxes accrued
|
379,425 | 83,056 | 296,369 | |||||||||
Interest accrued
|
(5,617 | ) | (24,674 | ) | 19,057 | |||||||
Deferred fuel
|
23,603 | (44,917 | ) | 68,520 | ||||||||
Other working capital accounts
|
(58,180 | ) | (29,361 | ) | (28,819 | ) | ||||||
Changes in provisions for estimated losses
|
(23,957 | ) | 1,714 | (25,671 | ) | |||||||
Changes in other regulatory assets
|
(874,741 | ) | 107,195 | (981,936 | ) | |||||||
Changes in pensions and other postretirement liabilities
|
1,163,047 | (214,114 | ) | 1,377,161 | ||||||||
Other
|
(341,123 | ) | (197,051 | ) | (144,072 | ) | ||||||
Net cash flow provided by operating activities
|
3,218,849 | 2,890,748 | 328,101 | |||||||||
INVESTING ACTIVITIES
|
||||||||||||
Construction/capital expenditures
|
(2,448,049 | ) | (2,024,246 | ) | (423,803 | ) | ||||||
Allowance for equity funds used during construction
|
98,653 | 74,487 | 24,166 | |||||||||
Nuclear fuel purchases
|
(578,987 | ) | (567,349 | ) | (11,638 | ) | ||||||
Payment for purchase of plant
|
(347,192 | ) | (299,590 | ) | (47,602 | ) | ||||||
Proceeds from sale of assets and businesses
|
- | 225,027 | (225,027 | ) | ||||||||
Changes in securitization account
|
(8,853 | ) | (7,206 | ) | (1,647 | ) | ||||||
NYPA value sharing payment
|
(72,000 | ) | (72,000 | ) | - | |||||||
Payments to storm reserve escrow account
|
(8,391 | ) | (6,756 | ) | (1,635 | ) | ||||||
Receipts from storm reserve escrow account
|
17,884 | - | 17,884 | |||||||||
Decrease (increase) in other investments
|
(20,925 | ) | (153,433 | ) | 132,508 | |||||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
|
109,105 | - | 109,105 | |||||||||
Proceeds from nuclear decommissioning trust fund sales
|
1,723,954 | 1,685,464 | 38,490 | |||||||||
Investment in nuclear decommissioning trust funds
|
(1,839,776 | ) | (1,829,380 | ) | (10,396 | ) | ||||||
Net cash flow used in investing activities
|
(3,374,577 | ) | (2,974,982 | ) | (399,595 | ) | ||||||
FINANCING ACTIVITIES
|
||||||||||||
Proceeds from the issuance of:
|
||||||||||||
Long-term debt
|
3,744,741 | 3,134,104 | 610,637 | |||||||||
Preferred stock
|
51,000 | - | 51,000 | |||||||||
Treasury stock
|
69,898 | 38,289 | 31,609 | |||||||||
Retirement of long-term debt
|
(3,518,987 | ) | (3,011,601 | ) | (507,386 | ) | ||||||
Repurchase of common stock
|
- | (447,584 | ) | 447,584 | ||||||||
Redemption of subsidiary common and preferred stock
|
(30,308 | ) | - | (30,308 | ) | |||||||
Changes in credit borrowings - net
|
211,308 | 40,456 | 170,852 | |||||||||
Dividends paid:
|
||||||||||||
Common stock
|
(587,607 | ) | (593,461 | ) | 5,854 | |||||||
Preferred stock
|
(21,384 | ) | (20,061 | ) | (1,323 | ) | ||||||
Net cash flow used in financing activities
|
(81,339 | ) | (859,858 | ) | 778,519 | |||||||
Effect of exchange rates on cash and cash equivalents
|
(354 | ) | 313 | (667 | ) | |||||||
Net increase (decrease) in cash and cash equivalents
|
(237,421 | ) | (943,779 | ) | 706,358 | |||||||
Cash and cash equivalents at beginning of period
|
987,140 | 1,930,919 | (943,779 | ) | ||||||||
Cash and cash equivalents at end of period
|
$ | 749,719 | $ | 987,140 | $ | (237,421 | ) | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash paid (received) during the period for:
|
||||||||||||
Interest - net of amount capitalized
|
$ | 540,888 | $ | 547,405 | $ | (6,517 | ) | |||||
Income taxes
|
$ | 40,441 | $ | (831 | ) | $ | 41,272 | |||||