In this combined report and from time to time, Entergy Corporation and the Registrant Subsidiaries each makes statements as a registrant concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance.  Such statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “intend,” “expect,” “estimate,” “continue,” “potential,” “plan,” “predict,” “forecast,” and other similar words or expressions are intended to identify forward-looking statements but are not the only means to identify these statements.  Although each of these registrants believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct.  Any forward-looking statement is based on information current as of the date of this combined report and speaks only as of the date on which such statement is made.  Except to the extent required by the federal securities laws, these registrants undertake 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 those factors discussed or incorporated by reference in (a) Item 1A. Risk Factors in the Form 10-K, (b) Management’s Financial Discussion and Analysis in the Form 10-K and in this report, and (c) the following factors (in addition to others described elsewhere in this combined report and in subsequent securities filings):

Entergy operates primarily through two business segments: Utility and Entergy Wholesale Commodities.

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing the second quarter 20172018 to the second quarter 20162017 showing how much the line item increased or (decreased) in comparison to the prior period:

Refer to “ENTERGY CORPORATION AND SUBSIDIARIES - SELECTED OPERATING RESULTS” for further information with respect to operating statistics.

Second quarter 2018 results of operations includes impairment charges of $69 million ($54 million net-of-tax) due to costs being charged directly to expense as a result of the impaired value of the Entergy Wholesale Commodities

The effective income tax rate was (442.1%) for the second quarter 2017. The difference in the effective income tax rate for the second quarter 2017 versus the federal statutory rate of 35% was primarily due to tax elections to treat as corporations for federal income tax purposes two subsidiaries that each own an Entergy Wholesale Commodities nuclear power plant, which resulted in both permanent and temporary differences under the income tax accounting standards. See Note 10 to the financial statements herein for additional discussion of the tax elections.

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing the six months ended June 30, 20172018 to the six months ended June 30, 20162017 showing how much the line item increased or (decreased) in comparison to the prior period:

Refer to “ENTERGY CORPORATION AND SUBSIDIARIES - SELECTED OPERATING RESULTS” for further information with respect to operating statistics.

Results of operations for the six months ended June 30, 2017 include impairment charges of $405 million ($263 million net-of-tax) of impairment charges due to costs being charged directly to expense as incurred as a result of the impaired value of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the significantly reduced remaining estimated operating lives associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet and a reduction of income tax expense, net of unrecognized tax benefits, of $373 million as a result of a change in the

Following is an analysis of the change in net revenue comparing the six months ended June 30, 20172018 to the six months ended June 30, 2016:2017:

The retail electric price variance is primarily due to:

The volume/weather variance is primarily due to decreasedan increase of 2,725 GWh, or 5%, in billed electricity usage, during the unbilled sales period, including the effect of weather. This decrease was partially offset bymore favorable weather on residential and commercial sales and an increase of 551 GWh, or 1%, in billed electricityindustrial usage. The increase in industrial usage is primarily due to a new customer in the primary metals industry.

Following is an analysis of the change in net revenue comparing the six months ended June 30, 20172018 to the six months ended June 30, 2016:2017:

Other operation and maintenance expenses increaseddecreased from $384 million for the six months ended June 30, 2016 to $500$476 million for the six months ended June 30, 2017 to $391 million for the six months ended June 30, 2018 primarily due to:

The gain on sale of assets resulted from the sale in March 2017 of the 838 MW FitzPatrick plant to Exelon. Entergy sold the FitzPatrick plant for approximately $110 million, including thewhich included a $10 million non-refundable signing fee paid in August 2016, in addition to the assumption by Exelon of certain liabilities related to the FitzPatrick plant, resulting in a pre-tax gain of $16 million on the sale. See Note 13 to the financial statements herein for a discussion of the sale.

Other expenses increasedincome decreased primarily due to increases in decommissioning expenses primarily as a result of a trust transfer agreement Entergy entered into with NYPA in August 2016, which closed in January 2017, to transferlosses on the decommissioning trusts and decommissioning liabilities fortrust fund investments in the Indian Point 3 and FitzPatrick plants to Entergy and revisionssix months ended June 30, 2018 as compared to the estimated decommissioning cost liabilities for the Entergy Wholesale Commodities’ Indian Point

Other expenses decreased primarily due to the revisedabsence of decommissioning cost studies. The increaseexpense from the FitzPatrick plant after it was partially offset bysold to Exelon in March 2017 and a reduction in deferred refueling outage amortization costs related to the impairments of the Indian Point 3, Indian Point 2, and Palisades plants and related assets. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of FitzPatrick and impairments and related charges.

The effective income tax rate was (193.7%) for the six months ended June 30, 2017. The difference in the effective income tax rate for the six months ended June 30, 2017 versus the federal statutory rate of 35% was primarily due to a change in the tax elections to treat as corporations for federal income tax purposes two subsidiariesclassification of legal entities that each own an Entergy Wholesale Commodities nuclear power plant,plants, which resulted in both permanent and temporary differences under the income tax accounting standards and the re-determined tax basis of the FitzPatrick plant as a result of its sale on March 31, 2017. See Note 103 to the financial statements hereinin the Form 10-K for further discussion of the change in tax electionsclassification and the tax benefit associated with the sale of FitzPatrick.

In April 2018 the NRC issued a supplement to the final supplemental environmental impact statement, and in August 2018 the NRC issued a supplemental safety evaluation report. The supplements update the environmental record and safety record related to the Indian Point license renewal. The NRC is expected to issue its decision in the Indian Point 2 and Indian Point 3 license renewal proceedings in fourth quarter 2018.

As discussed in the Form 10-K, operations may be extended up to four additional years for each unit by mutual agreement of Entergy and New York State based on an exigent reliability need for Indian Point generation. In accordance with the settlement with New York State, in March 2017FERC-approved tariff of the New York State Department of State issued a concurrence with Indian Point’s new Coastal Zone Management Act (CZMA) consistency certification and, on Entergy’s motion, the U.S. District Court for the Northern District of New York dismissed Entergy’s appeal relatedIndependent System Operator (NYISO), Entergy submitted to the initial Indian Point CZMA consistency certification. Also in March 2017 the Atomic Safety and Licensing BoardNYISO a notice of the NRC granted the motion of New York State and Riverkeeper to withdraw their pending contentionsgenerator deactivation based on the NRC license renewal application and terminated the proceedings.  Subsequent to the issuance of the water quality certification and water discharge permitdates in January 2017 by the New York State Department of Environmental Conservation (NYSDEC), in April 2017 the NYSDEC updated its environmental analysis to reflect the early shutdown per the settlement agreement. Both the water quality certification and the CZMA concurrence were filed with the NRC in(no later than April 2017.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy’s capital structure, capital expenditure plans and other uses of capital, and sources of capital.  Following are updates to that discussion.

Entergy’s capitalizationdebt to capital ratio is balanced between equity and debt, as shown in the following table. The increase in the debt to capital ratio for Entergy as of June 30, 2018 is primarily due to the net issuance of debt in 2018.

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2021.  Entergy Corporation also has2022.  The facility includes fronting commitments for the ability to issueissuance of letters of credit against 50%$20 million of the total borrowing capacity of the credit facility.  The commitment fee is currently 0.225% of the undrawn commitment amount.  Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation.  The weighted average interest rate for the six months ended June 30, 20172018 was 2.38%3.34% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of June 30, 2017:2018:

Entergy Nuclear Vermont Yankee has a credit facility guaranteed by Entergy Corporation with a borrowing capacity of $100$145 million whichthat expires in January 2018.November 2020. As of June 30, 2017, $712018, $108 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 20172018 was 2.44%

Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5$2 billion. As of June 30, 2017,2018, Entergy Corporation had $1.1 billionapproximately $1,945 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 20172018 was 1.38%2.31%.

See the table and discussion in the Form 10-K under “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Capital Expenditure Plans and Other Uses of Capital,” that sets forth the amounts of planned construction and other capital investments by operating segment for 20172018 through 2019.2020. Following are updates to the discussion.

InAs discussed in the Form 10-K, in April 2017, Entergy Louisiana signed a purchase and salean agreement with a subsidiary of Calpine Corporation for the acquisitionconstruction and purchase of a peaking plant. Calpine will construct the plant, which will consist of two natural gas-fired combustion turbine units with a total nominal capacity of approximately 360 MW. The plant, named the Washington Parish Energy Center, will be located in Bogalusa, Louisiana and, subject to permits and approvals, is expected to be completed in 2021. Subject to regulatory approvals,In May 2017, Entergy Louisiana will purchasefiled an application with the plant once it is complete forLPSC seeking certification of the plant. In April 2018 the parties reached a settlement recommending certification and cost recovery through the additional capacity mechanism of the formula rate plan, consistent with prior LPSC precedent with respect to the certification and recovery of plants previously acquired by Entergy Louisiana. The LPSC issued an estimated total investment of approximately $261 million, including transmission and other related costs. Inorder approving the settlement in May 2018.

Declarations of dividends on Entergy’s common stock are made at the discretion of the Board.  Among other things, the Board evaluates the level of Entergy’s common stock dividends based upon earnings per share from the Utility operating segment and the Parent and Other portion of the business, financial strength, and future investment opportunities.  At its July 20172018 meeting, the Board declared a dividend of $0.87$0.89 per share, which is the same quarterly dividend per share that Entergy has paid since the fourth quarter 2016.2017.

As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the six months ended June 30, 20172018 and 20162017 were as follows:

Net cash flow provided by operating activities decreasedincreased by $432$260 million for the six months ended June 30, 20172018 compared to the six months ended June 30, 20162017 primarily due to:

Net cash flow used in investing activities decreased $496increased $159 million for the six months ended June 30, 20172018 compared to the six months ended June 30, 20162017 primarily due to:

Net cash flow provided by financing activities increased $38$184 million for the six months ended June 30, 20172018 compared to the six months ended June 30, 20162017 primarily due to anlong-term debt activity providing approximately $790 million of cash in 2018 compared to providing approximately $170 million in 2017. Borrowings and repayments of borrowings on Entergy’s long-term credit facility are included in long-term debt activity. The increase was partially offset by a decrease of $372$324 million in net issuances of commercial paper in 20172018 compared to the same period in 2016.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Rate, Cost-recovery, and Other Regulation” in the Form 10-K for discussions of rate regulation, federal regulation, and related regulatory proceedings.

See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding these proceedings.

See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding federal regulatory proceedings.

As a wholesale generator, Entergy Wholesale Commodities’ core business is selling energy, measured in MWh, to its customers.  Entergy Wholesale Commodities enters into forward contracts with its customers and also sells energy in the day ahead or spot markets.  In addition to selling the energy produced by its plants, Entergy Wholesale Commodities also sells unforced capacity, which allows load-serving entities to meet specified reserve and related requirements placed on them by the ISOs in their respective areas.  Entergy Wholesale Commodities’ forward physical power contracts consist of contracts to sell energy only, contracts to sell capacity only, and bundled contracts in which it sells both capacity and energy.  While the terminology and payment mechanics vary in these contracts, each of these types of contracts requires Entergy Wholesale Commodities to deliver MWh of energy, make capacity available, or both.  In addition to its forward physical power contracts, Entergy Wholesale Commodities also uses a combination of financial contracts, including swaps, collars, and options, to manage forward commodity price risk.  Certain hedge volumes have price downside and upside relative to market price movement.  The contracted minimum, expected value, and sensitivities are provided in the table below to show potential variations.  The sensitivities may not reflect the total maximum upside potential from higher market prices.  The information contained in the following table 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.  Following is a summary of Entergy Wholesale Commodities’ current forward capacity and generation contracts as well as total revenue projections based on market prices as of June 30, 2017 (20172018 (2018 represents the remainder of the year):

Some of the agreements to sell the power produced by Entergy Wholesale Commodities’ power plants contain provisions that require an Entergy subsidiary to provide credit support to secure its obligations under the agreements.  The Entergy subsidiary is required to provide credit support based upon the difference between the current market prices and contracted power prices in the regions where Entergy Wholesale Commodities sells power.  The primary form of credit support to satisfy these requirements is an Entergy Corporation guaranty.  Cash and letters of credit are also acceptable forms of credit support.  At June 30, 2017,2018, based on power prices at that time, Entergy had liquidity exposure of $116$117 million under the guarantees in place supporting Entergy Wholesale Commodities transactions and $8$17 million of posted cash collateral.  In the event of a decrease in Entergy Corporation’s credit rating to below investment grade, based on power prices as of June 30, 2017,2018, Entergy would have been required to provide approximately $50$48 million of additional cash or letters of credit under some of the agreements. As of June 30, 2017,2018, the liquidity exposure associated with Entergy Wholesale Commodities assurance requirements, including return of previously posted collateral from counterparties, would increase by $236$339 million for a $1 per MMBtu increase in gas prices in both the short-andshort- and long-term markets.

As of June 30, 2017,2018, substantially all of the credit exposure associated with the planned energy output under contract for Entergy Wholesale Commodities nuclear plants through 20212022 is with counterparties or their guarantors that have public investment grade credit ratings.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters. The following is an updateare updates to that discussion.

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy’s accounting for nuclear decommissioning costs, utility regulatory accounting, unbilled revenue, impairment of long-lived assets and trust fund investments, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.

As discussed inIn February 2016 the Form 10-K,FASB issued ASU No. 2014-09, “Revenue2016-02, “Leases (Topic 842).”  The ASU’s core principle is that “a lessee should recognize the assets and liabilities that arise from Contractsleases.” The ASU considers that “all leases create an asset and a liability,” and accordingly requires recording the assets and liabilities related to all leases with Customersa term greater than 12 months.  In January 2018 the FASB issued ASU No. 2018-01, “Leases (Topic 606)842): Land Easement Practical Expedient for Transition to Topic 842,” providing entities the option to elect not to evaluate existing land easements that are not currently accounted for under the previous lease standard. In July 2018 the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements,” which is intended to simplify the transition requirements giving entities the option to apply the transition provisions of the new standard at the date of adoption instead of at the earliest comparative period presented and provides a practical expedient for the separation of lease and nonlease components for lessors. Entergy plans to adopt ASU 2016-02 along with the practical expedients provided by ASU 2018-01 and 2018-11 when they become effective for Entergy forin the first quarter 2018.2019.  Entergy has selected the modified retrospective transition method. Entergy’s evaluation ofexpects that ASU 2014-09 has not identified any effects that it expects2016-02 will affect materiallyits financial position by increasing the assets and liabilities recorded relating to its operating leases.  Entergy is evaluating ASU 2016-02 for other effects on its results of operations, financial position, or cash flows. Entergy continuesflows, and financial statement disclosures, as well as the potential to monitorelect various other practical expedients permitted by the development and finalization of industry-specific application guidance that could have an effect on this assessment.