ENTERGY NEW ORLEANS, LLC - Quarter Report: 2013 March (Form 10-Q)

(Mark One)
X	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended March 31, 2013
	OR
	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to ____________

Commission File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.		Commission File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.
1-11299	ENTERGY CORPORATION (a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000 72-1229752		1-31508	ENTERGY MISSISSIPPI, INC. (a Mississippi corporation) 308 East Pearl Street Jackson, Mississippi 39201 Telephone (601) 368-5000 64-0205830
1-10764	ENTERGY ARKANSAS, INC. (an Arkansas corporation) 425 West Capitol Avenue Little Rock, Arkansas 72201 Telephone (501) 377-4000 71-0005900		0-05807	ENTERGY NEW ORLEANS, INC. (a Louisiana corporation) 1600 Perdido Street New Orleans, Louisiana 70112 Telephone (504) 670-3700 72-0273040
0-20371	ENTERGY GULF STATES LOUISIANA, L.L.C. (a Louisiana limited liability company) 446 North Boulevard Baton Rouge, Louisiana 70802 Telephone (800) 368-3749 74-0662730		1-34360	ENTERGY TEXAS, INC. (a Texas corporation) 350 Pine Street Beaumont, Texas 77701 Telephone (409) 981-2000 61-1435798
1-32718	ENTERGY LOUISIANA, LLC (a Texas limited liability company) 446 North Boulevard Baton Rouge, Louisiana 70802 Telephone (800) 368-3749 75-3206126		1-09067	SYSTEM ENERGY RESOURCES, INC. (an Arkansas corporation) Echelon One 1340 Echelon Parkway Jackson, Mississippi 39213 Telephone (601) 368-5000 72-0752777

	Large accelerated filer		Accelerated filer		Non- accelerated filer		Smaller reporting company
Entergy Corporation	Ö
Entergy Arkansas, Inc.					Ö
Entergy Gulf States Louisiana, L.L.C.					Ö
Entergy Louisiana, LLC					Ö
Entergy Mississippi, Inc.					Ö
Entergy New Orleans, Inc.					Ö
Entergy Texas, Inc.					Ö
System Energy Resources, Inc.					Ö

Common Stock Outstanding		Outstanding at April 30, 2013
Entergy Corporation	($0.01 par value)	178,184,969

	Page Number
Forward-looking information	iii
Definitions	v
Entergy Corporation and Subsidiaries
Management’s Financial Discussion and Analysis	1
Consolidated Statements of Income (Loss)	16
Consolidated Statements of Comprehensive Income	17
Consolidated Statements of Cash Flows	18
Consolidated Balance Sheets	20
Consolidated Statements of Changes in Equity	22
Selected Operating Results	23
Notes to Financial Statements	24
Part 1. Item 4.  Controls and Procedures	64
Entergy Arkansas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis	65
Consolidated Income Statements	71
Consolidated Statements of Cash Flows	73
Consolidated Balance Sheets	74
Consolidated Statements of Changes in Common Equity	76
Selected Operating Results	77
Entergy Gulf States Louisiana, L.L.C.
Management’s Financial Discussion and Analysis	78
Income Statements	85
Statements of Comprehensive Income	86
Statements of Cash Flows	87
Balance Sheets	88
Statements of Changes in Equity	90
Selected Operating Results	91
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis	92
Consolidated Income Statements	99
Consolidated Statements of Comprehensive Income	100
Consolidated Statements of Cash Flows	101
Consolidated Balance Sheets	102
Consolidated Statements of Changes in Equity	104
Selected Operating Results	105
Entergy Mississippi, Inc.
Management’s Financial Discussion and Analysis	106
Income Statements	111
Statements of Cash Flows	113
Balance Sheets	114
Statements of Changes in Common Equity	116
Selected Operating Results	117

	Page Number
Entergy New Orleans, Inc.
Management’s Financial Discussion and Analysis	118
Income Statements	122
Statements of Cash Flows	123
Balance Sheets	124
Statements of Changes in Common Equity	126
Selected Operating Results	127
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis	128
Consolidated Income Statements	132
Consolidated Statements of Cash Flows	133
Consolidated Balance Sheets	134
Consolidated Statements of Changes in Common Equity	136
Selected Operating Results	137
System Energy Resources, Inc.
Management’s Financial Discussion and Analysis	138
Income Statements	141
Statements of Cash Flows	143
Balance Sheets	144
Statements of Changes in Common Equity	146
Part II.  Other Information
Item 1.    Legal Proceedings	147
Item 1A.  Risk Factors	147
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds	147
Item 5.    Other Information	148
Item 6.    Exhibits	151
Signature	153

·	resolution of pending and future rate cases and negotiations, including various performance-based rate discussions, Entergy’s utility supply plan, and recovery of fuel and purchased power costs;

·

the termination of Entergy Arkansas’s and Entergy Mississippi’s participation in the System Agreement in December 2013 and November 2015, respectively, and the potential for other Entergy operating companies to terminate participation in the System Agreement by providing notice pursuant to the current 96-month notice period and/or by seeking an amendment to the System Agreement that would allow for an Entergy operating company to terminate its participation in less than 96 months;

·	regulatory and operating challenges and uncertainties associated with the Utility operating companies’ proposal to move to the MISO RTO;

·

risks associated with the proposed spin-off and subsequent merger of Entergy’s electric transmission business into a subsidiary of ITC Holdings Corp., including the risk that Entergy and the Utility operating companies may not be able to timely satisfy the conditions or obtain the approvals required to complete such transaction or such approvals may contain material restrictions or conditions, and the risk that if completed, the transaction may not achieve its anticipated results;

·	changes in utility regulation, including the beginning or end of retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, and the application of more stringent transmission reliability requirements or market power criteria by the FERC;

·

changes in regulation of nuclear generating facilities and nuclear materials and fuel, including possible shutdown of nuclear generating facilities, particularly those owned or operated by the Entergy Wholesale Commodities business, and the effects of new or existing safety or environmental concerns regarding nuclear power plants and nuclear fuel;

·	resolution of pending or future applications, and related regulatory proceedings and litigation, for license renewals or modifications of nuclear generating facilities;

·	the performance of and deliverability of power from Entergy’s generation resources, including the capacity factors at its nuclear generating facilities;

·	Entergy’s ability to develop and execute on a point of view regarding future prices of electricity, natural gas, and other energy-related commodities;

·	prices for power generated by Entergy’s merchant generating facilities and the ability to hedge, meet credit support requirements for hedges, sell power forward, or otherwise reduce the market price risk associated with those facilities, including the Entergy Wholesale Commodities nuclear plants;

·	the prices and availability of fuel and power Entergy must purchase for its Utility customers, and Entergy’s ability to meet credit support requirements for fuel and power supply contracts;

·	volatility and changes in markets for electricity, natural gas, uranium, and other energy-related commodities;

·	changes in law resulting from federal or state energy legislation or legislation subjecting energy derivatives used in hedging and risk management transactions to governmental regulation;

·	changes in environmental, tax, and other laws, including requirements for reduced emissions of sulfur, nitrogen, carbon, greenhouse gases, mercury, and other regulated air emissions, and changes in costs of compliance with environmental and other laws and regulations;

·	uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel and nuclear waste storage and disposal;

·

variations in weather and the occurrence of hurricanes and other storms and disasters, including uncertainties associated with efforts to remediate the effects of hurricanes, ice storms, or other weather events and the recovery of costs associated with restoration, including accessing funded storm reserves, federal and local cost recovery mechanisms, securitization, and insurance;

·	effects of climate change;

·	changes in the quality and availability of water supplies and the related regulation of water use and diversion;

·	Entergy’s ability to manage its capital projects and operation and maintenance costs;

·	Entergy’s ability to purchase and sell assets at attractive prices and on other attractive terms;

·	the economic climate, and particularly economic conditions in Entergy’s Utility service area and the Northeast United States and events that could influence economic conditions in those areas;

·	the effects of Entergy’s strategies to reduce tax payments;

·	changes in the financial markets, particularly those affecting the availability of capital and Entergy’s ability to refinance existing debt, execute share repurchase programs, and fund investments and acquisitions;

·	actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies’ ratings criteria;

·	changes in inflation and interest rates;

·	the effect of litigation and government investigations or proceedings;

·	advances in technology;

·	the potential effects of threatened or actual terrorism, cyber attacks or data security breaches, including increased security costs, and war or a catastrophic event such as a nuclear accident or a natural gas pipeline explosion;

·	Entergy’s ability to attract and retain talented management and directors;

·	changes in accounting standards and corporate governance;

·	declines in the market prices of marketable securities and resulting funding requirements for Entergy’s defined benefit pension and other postretirement benefit plans;

·	future wage and employee benefit costs, including changes in discount rates and returns on benefit plan assets;

·	changes in decommissioning trust fund values or earnings or in the timing of or cost to decommission nuclear plant sites;

·	the effectiveness of Entergy’s risk management policies and procedures and the ability and willingness of its counterparties to satisfy their financial and performance commitments;

·	factors that could lead to impairment of long-lived assets; and

·	the ability to successfully complete merger, acquisition, or divestiture plans, regulatory or other limitations imposed as a result of merger, acquisition, or divestiture, and the success of the business following a merger, acquisition, or divestiture.

Abbreviation or Acronym	Term
AFUDC	Allowance for Funds Used During Construction
ALJ	Administrative Law Judge
ANO 1 and 2	Units 1 and 2 of Arkansas Nuclear One (nuclear), owned by Entergy Arkansas
APSC	Arkansas Public Service Commission
ASLB	Atomic Safety and Licensing Board, the board within the NRC that conducts hearings and performs other regulatory functions that the NRC authorizes
ASU	Accounting Standards Update issued by the FASB
Board	Board of Directors of Entergy Corporation
capacity factor	Actual plant output divided by maximum potential plant output for the period
City Council or Council	Council of the City of New Orleans, Louisiana
D.C. Circuit	U.S. Court of Appeals for the District of Columbia Circuit
DOE	United States Department of Energy
Entergy	Entergy Corporation and its direct and indirect subsidiaries
Entergy Corporation	Entergy Corporation, a Delaware corporation
Entergy Gulf States, Inc.	Predecessor company for financial reporting purposes to Entergy Gulf States Louisiana that included the assets and business operations of both Entergy Gulf States Louisiana and Entergy Texas
Entergy Gulf States Louisiana	Entergy Gulf States Louisiana, L.L.C., a company formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. and the successor company to Entergy Gulf States, Inc. for financial reporting purposes.  The term is also used to refer to the Louisiana jurisdictional business of Entergy Gulf States, Inc., as the context requires.
Entergy Texas	Entergy Texas, Inc., a company formally created as part of the jurisdictional separation of Entergy Gulf States, Inc.  The term is also used to refer to the Texas jurisdictional business of Entergy Gulf States, Inc., as the context requires.
Entergy Wholesale Commodities (EWC)	Entergy’s non-utility business segment primarily comprised of the ownership and operation of six nuclear power plants, the ownership of interests in non-nuclear power plants, and the sale of the electric power produced by those plants to wholesale customers
EPA	United States Environmental Protection Agency
ERCOT	Electric Reliability Council of Texas
FASB	Financial Accounting Standards Board
FERC	Federal Energy Regulatory Commission
FitzPatrick	James A. FitzPatrick Nuclear Power Plant (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
Form 10-K	Annual Report on Form 10-K for the calendar year ended December 31, 2012 filed with the SEC by Entergy Corporation and its Registrant Subsidiaries
Grand Gulf	Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy
GWh	Gigawatt-hour(s), which equals one million kilowatt-hours
Independence	Independence Steam Electric Station (coal), owned 16% by Entergy Arkansas, 25% by Entergy Mississippi, and 7% by Entergy Power
Indian Point 2	Unit 2 of Indian Point Energy Center (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
Indian Point 3	Unit 3 of Indian Point Energy Center (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
IRS	Internal Revenue Service
ISO	Independent System Operator

Abbreviation or Acronym	Term
kW	Kilowatt, which equals one thousand watts
kWh	Kilowatt-hour(s)
LPSC	Louisiana Public Service Commission
MISO	Midcontinent Independent System Operator, Inc., a regional transmission organization
MMBtu	One million British Thermal Units
MPSC	Mississippi Public Service Commission
MW	Megawatt(s), which equals one thousand kilowatts
MWh	Megawatt-hour(s)
Net debt to net capital ratio	Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents
Net MW in operation	Installed capacity owned and operated
NRC	Nuclear Regulatory Commission
NYPA	New York Power Authority
Palisades	Palisades Power Plant (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
Pilgrim	Pilgrim Nuclear Power Station (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
PPA	Purchased power agreement or power purchase agreement
PUCT	Public Utility Commission of Texas
Registrant Subsidiaries	Entergy Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C., Entergy Louisiana, LLC, Entergy Mississippi, Inc., Entergy New Orleans, Inc., Entergy Texas, Inc., and System Energy Resources, Inc.
River Bend	River Bend Station (nuclear), owned by Entergy Gulf States Louisiana
RTO	Regional transmission organization
SEC	Securities and Exchange Commission
SMEPA	South Mississippi Electric Power Association, which owns a 10% interest in Grand Gulf
System Agreement	Agreement, effective January 1, 1983, as modified, among the Utility operating companies relating to the sharing of generating capacity and other power resources
System Energy	System Energy Resources, Inc.
TWh	Terawatt-hour(s), which equals one billion kilowatt-hours
Unit Power Sales Agreement	Agreement, dated as of June 10, 1982, as amended and approved by FERC, among Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy, relating to the sale of capacity and energy from System Energy’s share of Grand Gulf
Utility	Entergy’s business segment that generates, transmits, distributes, and sells electric power, with a small amount of natural gas distribution
Utility operating companies	Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas
Vermont Yankee	Vermont Yankee Nuclear Power Station (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
Waterford 3	Unit No. 3 (nuclear) of the Waterford Steam Electric Station, 100% owned or leased by Entergy Louisiana
weather-adjusted usage	Electric usage excluding the effects of deviations from normal weather

·

The Utility business segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operates a small natural gas distribution business.  As discussed in more detail in “Plan to Spin Off the Utility’s Transmission Business,” in the Form 10-K, in December 2011, Entergy entered into an agreement to spin off its transmission business and merge it with a newly-formed subsidiary of ITC Holdings Corp.

·

The Entergy Wholesale Commodities business segment includes the ownership and operation of six nuclear power plants located in the northern United States and the sale of the electric power produced by those plants to wholesale customers.  This business also provides services to other nuclear power plant owners.  Entergy Wholesale Commodities also owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers.

		Utility				Entergy Wholesale Commodities				Parent & Other (a)				Entergy
		(In Thousands)
1st Quarter 2012 Consolidated Net Income (Loss)		$	67,212			$	(175,949	)		$	(38,003	)		$	(146,740	)
Net revenue (operating revenue less fuel   expense, purchased power, and other   regulatory charges/credits)			117,644				41,426				1,553				160,623
Other operation and maintenance expenses			29,529				(1,400	)			4,494				32,623
Asset impairment			-				(355,524	)			-				(355,524	)
Taxes other than income taxes			10,964				2,978				(17	)			13,925
Depreciation and amortization			22,445				(1,829	)			45				20,661
Other income			(12,253	)			1,170				1,208				(9,875	)
Interest expense			6,792				(3,136	)			6,951				10,607
Other expenses			3,670				(5,633	)			(1	)			(1,964	)
Income taxes			(28,632	)			149,077				(3,747	)			116,698
1st Quarter 2013 Consolidated Net Income (Loss)		$	127,835			$	82,114			$	(42,967	)		$	166,982

(a)	Parent & Other includes eliminations, which are primarily intersegment activity.

		Amount
		(In Millions)
2012 net revenue		$	1,106
Retail electric price			61
Grand Gulf recovery			33
Volume/weather			19
Other			4
2013 net revenue		$	1,223

·

the recovery of Hinds plant costs through the power management rider at Entergy Mississippi, as approved by the MPSC, effective with the first billing cycle of 2013.  The net income effect of the Hinds plant cost recovery is limited to a portion representing an allowed return on equity on the net plant investment with the remainder offset by the Hinds plant costs in other operation and maintenance expenses, depreciation expenses, and taxes other than income taxes;

·

an increase in the capacity acquisition rider at Entergy Arkansas, as approved by the APSC, effective with the first billing cycle of December 2012, relating to the Hot Spring plant acquisition.  The net income effect of the Hot Spring plant cost recovery is limited to a portion representing an allowed return on equity on the net plant investment with the remainder offset by the Hot Spring plant costs in other operation and maintenance expenses, depreciation expenses, and taxes other than income taxes;

·	an increase in the energy efficiency rider, as approved by the APSC, effective July 2012.  Energy efficiency revenues are offset by costs included in other operation and maintenance expenses and have no effect on net income;

·

a formula rate plan increase at Entergy Louisiana, effective January 2013, which includes an increase relating to the Waterford 3 steam generator replacement project, which was placed in service in December 2012.  The net income effect of the formula rate plan increase is limited to a portion representing an allowed return on equity with the remainder offset by costs included in other operation and maintenance expenses, depreciation expenses, and taxes other than income taxes; and

·	an annual base rate increase at Entergy Texas, effective July 2012, as a result of the PUCT’s order in the December 2011 rate case that was issued in September 2012.

		Amount
		(In Millions)
2012 net revenue		$	452
Nuclear realized price changes			66
Nuclear volume			(25	)
2013 net revenue		$	493

		2013		2012
Owned capacity		6,612		6,612
GWh billed		10,387		11,281
Average realized revenue per MWh		$58.66		$49.29
Entergy Wholesale Commodities Nuclear Fleet
Capacity factor		83%		88%
GWh billed		9,246		9,838
Average realized revenue per MWh		$57.82		$50.32
Refueling Outage Days:
Indian Point 2		-		27
Indian Point 3		28		-
Vermont Yankee		22		-

·

an increase of $16 million in compensation and benefits costs primarily due to a decrease in the discount rates used to determine net periodic pension and other postretirement benefit costs.  See "MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Critical Accounting Estimates" in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs;

·	an increase of $9 million in nuclear expenses, primarily due to higher labor costs, including higher contract labor;

·

an increase of $7 million in fossil-fueled generation expenses primarily due to the acquisition of the Hot Spring plant by Entergy Arkansas and the Hinds plant by Entergy Mississippi in November 2012.  Costs related to the Hot Spring and Hinds plants are recovered through the capacity acquisition rider and power management rider, respectively, as previously discussed; and

·	an increase of $5 million in energy efficiency costs at Entergy Arkansas.  These costs are recovered through the energy efficiency rider and have no effect on net income.

 

 

		March 31, 2013		December 31, 2012
Debt to capital		58.7%		58.7%
Effect of excluding the securitization bonds		(1.8%)		(1.8%)
Debt to capital, excluding securitization bonds (a)		56.9%		56.9%
Effect of subtracting cash		(0.6%)		(1.1%)
Net debt to net capital, excluding securitization bonds (a)		56.3%		55.8%

(a)	Calculation excludes the Arkansas, Louisiana, and Texas securitization bonds, which are non-recourse to Entergy Arkansas, Entergy Louisiana, and Entergy Texas, respectively.

Capacity (a)		Borrowings		Letters of Credit		Capacity Available
(In Millions)
$3,500		$570		$8		$2,922

(a)	The capacity decreases to $3,490 million in March 2017.

 

 

		2013				2012
		(In Millions)
Cash and cash equivalents at beginning of period		$	533			$	694
Cash flow provided by (used in):
Operating activities			544				601
Investing activities			(661	)			(749	)
Financing activities			(153	)			139
Net decrease in cash and cash equivalents			(270	)			(9	)
Cash and cash equivalents at end of period		$	263			$	685

·	higher deferred fuel refunds in 2013 compared to the same period in prior year;

·	approximately $31 million in storm restoration spending in 2013 resulting from the Arkansas December 2012 Winter storm and Hurricane Isaac; and

·	an increase of $21 million in spending on nuclear refueling outages in 2013 compared to the same period in prior year.

 

·	a decrease of $24 million in income tax payments;

·	a decrease of $36 million in pension contributions.  See "MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Critical Accounting Estimates" in the Form 10-K and Note 6 to the financial statements herein for a discussion of qualified pension and other postretirement benefits funding; and

·	the increase in Entergy Wholesale Commodities net revenue that is discussed previously.

·	the withdrawal of a total of $252 million from Entergy Gulf States Louisiana’s and Entergy Louisiana’s storm reserve escrow accounts in 2013 after Hurricane Isaac.  See Note 2 to the financial statements herein and in the Form 10-K for a discussion of Hurricane Isaac; and

·	a decrease in nuclear fuel purchases because of variations from year to year in the timing and pricing of fuel reload requirements, material and services deliveries, and the timing of cash payments during the nuclear fuel cycle.

·

long-term debt activity using approximately $285 million of cash in 2013 compared to providing $175 million of cash in 2012.  Included in the long-term debt activity in 2013 is $225 million repayment of borrowings on the Entergy Corporation long-term credit facility.  Entergy Corporation issued $219 million of commercial paper in 2013 to repay borrowings on its long-term credit facility;

·	$51 million in proceeds from the sale to a third party in 2012 of a portion of Entergy Gulf States Louisiana’s investment in Entergy Holdings Company’s Class A preferred membership interests; and

·	a decrease of $25 million in treasury stock issuances in 2013 compared to the same period in 2012.

 

 

 

 

		2013		2014		2015		2016		2017
Energy
Percent of planned generation under contract (a):
Unit-contingent (b)		41%		22%		12%		12%		13%
Unit-contingent with availability guarantees (c)		20%		15%		13%		13%		13%
Firm LD (d)		23%		58%		14%		-%		-%
Offsetting positions (e)		-%		(19)%		-%		-%		-%
Total		84%		76%		39%		25%		26%
Planned generation (TWh) (f) (g)		31		41		41		40		41
Average revenue per MWh on contracted volumes:
Minimum		$44		$44		$45		$50		$51
Expected based on market prices as of March 31, 2013		$45		$47		$48		$51		$52
Sensitivity: -/+ $10 per MWh market price change		$44-$48		$44-$51		$45-$54		$50-$54		$51-$55
Capacity
Percent of capacity sold forward (h):
Bundled capacity and energy contracts (i)		16%		16%		16%		16%		16%
Capacity contracts (j)		35%		17%		12%		18%		9%
Total		51%		33%		28%		34%		25%
Planned net MW in operation (g) (k)		5,011		5,011		5,011		5,011		5,011
Average revenue under contract per kW per month (applies to capacity contracts only)		$2.0		$2.4		$3.3		$3.2		$3.2
Total Nuclear Energy and Capacity Revenues
Expected sold and market total revenue per MWh		$48		$47		$47		$49		$51
Sensitivity: -/+ $10 per MWh market price change		$46-$53		$44-$53		$40-$55		$42-$57		$43-$58

		2013		2014		2015		2016		2017
Energy
Percent of planned generation under contract (a):
Cost-based contracts (l)		35%		32%		35%		32%		32%
Firm LD (d)		6%		6%		6%		6%		6%
Total		41%		38%		41%		38%		38%
Planned generation (TWh) (f) (m)		5		6		6		6		6
Capacity
Percent of capacity sold forward (h):
Cost-based contracts (l)		30%		24%		24%		24%		26%
Bundled capacity and energy contracts (i)		9%		8%		8%		8%		8%
Capacity contracts (j)		45%		50%		48%		47%		21%
Total		84%		82%		80%		79%		55%
Planned net MW in operation (k) (m)		1,052		1,052		1,052		1,052		977

(a)	Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts, or options that mitigate price uncertainty that may require regulatory approval or approval of transmission rights.
(b)	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.
(c)	A sale of power on a unit-contingent basis coupled with a guarantee of availability provides for the payment to the power purchaser of contract damages, if incurred, in the event the seller fails to deliver power as a result of the failure of the specified generation unit to generate power at or above a specified availability threshold.  All of Entergy’s outstanding guarantees of availability provide for dollar limits on Entergy’s maximum liability under such guarantees.
(d)	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.
(e)	Transactions for the purchase of energy, generally to offset a firm LD transaction.
(f)	Amount of output expected to be generated by Entergy Wholesale Commodities resources considering plant operating characteristics, outage schedules, and expected market conditions that effect dispatch.
(g)	Assumes NRC license renewal for plants whose current licenses expire within five years and uninterrupted normal operation at all plants.  NRC license renewal applications are in process for two units, as follows (with current license expirations in parentheses): Indian Point 2 (September 2013) and Indian Point 3 (December 2015).  For a discussion regarding the continued operation of the Vermont Yankee plant, see “Impairment of Long-Lived Assets” in Note 11 to the financial statements herein and Note 1 to the financial statements in the Form 10-K.  For a discussion regarding the license renewals for Indian Point 2 and Indian Point 3, see “Entergy Wholesale Commodities Authorizations to Operate Its Nuclear Power Plants” above.
(h)	Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions.
(i)	A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold.
(j)	A contract for the sale of an installed capacity product in a regional market.
(k)	Amount of capacity to be available to generate power and/or sell capacity considering uprates planned to be completed during the year.
(l)	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 contracts are on owned non-utility resources located within Entergy’s Utility service area, which do not operate under market-based rate authority.  The percentage sold assumes approval of long-term transmission rights.  Includes sales to the Utility through 2013 of 121 MW of capacity and energy from Entergy Power sourced from Independence Steam Electric Station Unit 2.
(m)	Non-nuclear planned generation and net MW in operation include purchases from affiliated and non-affiliated counterparties under long-term contracts and exclude energy and capacity from Entergy Wholesale Commodities’ wind investment and from the 544 MW Ritchie plant that is not planned to operate.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)
		2013				2012
		(In Thousands, Except Share Data)
OPERATING REVENUES
Electric		$	1,949,280			$	1,784,841
Natural gas			53,321				46,008
Competitive businesses			606,273				552,810
TOTAL			2,608,874				2,383,659
OPERATING EXPENSES
Operating and Maintenance:
Fuel, fuel-related expenses, and
gas purchased for resale			510,333				538,837
Purchased power			373,129				284,966
Nuclear refueling outage expenses			60,719				63,884
Asset impairment			-				355,524
Other operation and maintenance			754,258				721,635
Decommissioning			59,104				57,903
Taxes other than income taxes			151,095				137,170
Depreciation and amortization			300,876				280,215
Other regulatory charges			5,315				382
TOTAL			2,214,829				2,440,516
OPERATING INCOME (LOSS)			394,045				(56,857	)
OTHER INCOME
Allowance for equity funds used during construction			12,751				24,307
Interest and investment income			38,306				40,992
Miscellaneous - net			(13,623	)			(17,990	)
TOTAL			37,434				47,309
INTEREST EXPENSE
Interest expense			153,149				146,745
Allowance for borrowed funds used during construction			(5,188	)			(9,391	)
TOTAL			147,961				137,354
INCOME (LOSS) BEFORE INCOME TAXES			283,518				(146,902	)
Income taxes			116,536				(162	)
CONSOLIDATED NET INCOME (LOSS)			166,982				(146,740	)
Preferred dividend requirements of subsidiaries			5,582				4,943
NET INCOME (LOSS) ATTRIBUTABLE TO ENTERGY CORPORATION		$	161,400			$	(151,683	)
Earnings (loss) per average common share:
Basic		$	0.91			$	(0.86	)
Diluted		$	0.90			$	(0.86	)
Dividends declared per common share		$	0.83			$	0.83
Basic average number of common shares outstanding			178,027,961				176,865,363
Diluted average number of common shares outstanding			178,413,287				177,388,045
See Notes to Financial Statements.

 

 

 

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)
		2013				2012
		(In Thousands)
Net Income (loss)		$	166,982			$	(146,740	)
Other comprehensive income (loss)
Cash flow hedges net unrealized gain (loss)
(net of tax expense (benefit) of ($41,135) and $75,494)			(75,975	)			145,435
Pension and other postretirement liabilities
(net of tax expense of $5,869 and $3,876)			9,795				6,266
Net unrealized investment gains
(net of tax expense of $54,311 and $49,138)			56,377				50,107
Foreign currency translation
(net of tax expense (benefit) of ($416) and $167)			(772	)			311
Other comprehensive income (loss)			(10,575	)			202,119
Comprehensive Income			156,407				55,379
Preferred dividend requirements of subsidiaries			5,582				4,943
Comprehensive Income Attributable to Entergy Corporation		$	150,825			$	50,436
See Notes to Financial Statements.

 

ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)
		2013				2012
		(In Thousands)
OPERATING ACTIVITIES
Consolidated net income (loss)		$	166,982			$	(146,740	)
Adjustments to reconcile consolidated net income (loss) to net cash flow
provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization			472,933				450,009
Deferred income taxes, investment tax credits, and non-current taxes accrued			98,671				38,858
Asset impairment			-				355,524
Changes in working capital:
Receivables			(29,845	)			156,202
Fuel inventory			(5,147	)			(20,213	)
Accounts payable			(40,861	)			(145,599	)
Prepaid taxes and taxes accrued			(35,648	)			(89,583	)
Interest accrued			(30,570	)			(32,194	)
Deferred fuel costs			(2,149	)			77,405
Other working capital accounts			(151,958	)			(34,753	)
Changes in provisions for estimated losses			(245,972	)			(15,030	)
Changes in other regulatory assets			167,634				60,857
Changes in pensions and other postretirement liabilities			32,696				(4,764	)
Other			147,223				(49,479	)
Net cash flow provided by operating activities			543,989				600,500
INVESTING ACTIVITIES
Construction/capital expenditures			(631,857	)			(563,539	)
Allowance for equity funds used during construction			13,672				25,448
Nuclear fuel purchases			(145,168	)			(201,059	)
Changes in securitization account			1,601				940
NYPA value sharing payment			(71,736	)			(72,000	)
Payments to storm reserve escrow account			(2,219	)			(1,483	)
Receipts from storm reserve escrow account			252,482				861
Decrease (increase) in other investments			(44,298	)			93,786
Proceeds from nuclear decommissioning trust fund sales			398,010				535,551
Investment in nuclear decommissioning trust funds			(432,247	)			(567,780	)
Net cash flow used in investing activities			(661,760	)			(749,275	)
See Notes to Financial Statements.