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, projections, 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,” “goal,” “commitment,” “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 undertakeeach registrant 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 or incorporated by reference in Item 1A. Risk Factors in the Form 10-K and in this report, (b) those factors discussed or incorporated by reference in 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:a single reportable segment, Utility. The Utility and Entergy Wholesale Commodities.

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing the thirdfirst quarter 20222023 to the thirdfirst quarter 20212022 showing how much the line item increased or (decreased) in comparison to the prior period:

Other operation and maintenance expenses decreased from $559$628 million for the nine months ended September 30, 2021first quarter 2022 to $301$620 million for the nine months ended September 30, 2022first quarter 2023 primarily due to:

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other income decreasedincreased primarily due to:

Interest expense increased primarily due to:

Other expenses decreased primarily due to the absence of decommissioning expense from Indian Point 2 and Indian Point 3, after the salenuclear refueling outage expense as a result of the Indian Point Energy Center in May 2021, and from Palisades, after the sale of Palisades in June 2022.

See Note 14 to the financial statements in the Form 10-K for a discussion of the shutdown and sale of the Indian Point Energy Center. See Note 14 to the financial statements herein for discussion of the sale of Palisades.

The effective income tax rate was 19.2% for the first quarter 2022. The difference in the effective income tax rate for the first quarter 2022 versus the federal statutory rate of 21% was primarily due to the amortization of excess accumulated deferred income taxes and certain book and tax differences related to utility plant items, partially offset by state income taxes. See Note 10 to the financial statements herein and Notes 2 and 3 to the financial statements in the Form 10-K for a discussion of the effects of and regulatory activity regarding the Tax Cuts and Jobs Act.See Notes 2 and 10 to the financial statements herein for discussion of the Entergy Louisiana securitization.

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in June 2027.  The facility includes fronting commitments for the issuance of letters of credit against $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 ninethree months ended September 30, 2022March 31, 2023 was 2.39%6.12% on the drawn portion of the facility. As of September 30, 2022,March 31, 2023, amounts outstanding and capacity available under the $3.5 billion credit facility are:

Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of September 30, 2022,March 31, 2023, Entergy Corporation had $1.387 billion$865.6 million of commercial paper outstanding. The weighted-average interest rate for the ninethree months ended September 30, 2022March 31, 2023 was 1.52%4.93%.

In April 2022, Entergy Louisiana filed an application with the LPSC relating to Hurricane Ida restoration costs. Total restoration costs for the repair and/or replacement of Entergy Louisiana’s electric facilities damaged by Hurricane Ida currently arewere estimated to be approximately $2.54 billion, including approximately $1.96 billion in capital costs and approximately $586 million in non-capital costs. Including carrying costs of $57 million through December 2022, Entergy Louisiana iswas seeking an LPSC determination that $2.60 billion was prudently incurred and, therefore, is eligible for recovery from customers. As part of this filing, Entergy Louisiana also iswas seeking an LPSC determination that an additional $32 million in costs associated with the restoration of Entergy Louisiana’s electric facilities damaged by Hurricane Laura, Hurricane Delta, and Hurricane Zeta as well as Winter Storm Uri was prudently incurred. This amount iswas exclusive of the requested $3 million in carrying costs through December 2022. In total, Entergy Louisiana iswas requesting an LPSC determination that $2.64 billion was prudently incurred and, therefore, is eligible for recovery from customers. As discussed above,in the Form 10-K, in March 2022 the LPSC approved financing of a $1 billion storm escrow account from which funds were withdrawn to finance costs associated with Hurricane Ida restoration. In June 2022, Entergy Louisiana supplemented the application with a request regarding the financing and recovery of the recoverable storm restoration costs. Specifically, Entergy Louisiana requested approval to securitize its restoration costs pursuant to Louisiana Act 55 financing, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021. In October 2022 the LPSC staff recommended a finding that the requested storm restoration costs of $2.64 billion, including associated carrying costs of $59.1 million, were prudently incurred and are eligible for recovery from customers. The LPSC staff further recommended approval of Entergy Louisiana’s plans to securitize these costs, net of the $1 billion in funds withdrawn from the storm escrow account described above. A procedural schedule has been establishedThe parties negotiated and executed an uncontested stipulated settlement which was filed with a hearingthe LPSC in December 2022.

Entergy and Entergy Louisiana do not report the bonds issued by the LCDA on their balance sheets because the bonds are the obligation of the LCDA. The bonds are secured by system restoration property, which is the right granted by law to the LURC to collect a system restoration charge from customers. The system restoration charge is adjusted at least semi-annually to ensure that it is sufficient to service the bonds. Entergy TexasLouisiana collects the system restoration charge on behalf of the LURC and remits the collections to the bond indenture trustee. Entergy Louisiana began cost recovery throughcollecting the system restoration charge effective with the first billing cycle of May 2022April 2023 and the system restoration charge is expected to remain in place up to 15 years. SeeEntergy and Entergy Louisiana do not report the collections as revenue because Entergy Louisiana is merely acting as a billing and collection agent for the LCDA and the LURC. In the remote possibility that the system restoration charge, as well as any funds in the excess subaccount and funds in the debt service reserve account, are insufficient to service the bonds resulting in a payment default, the storm trust II is required to liquidate Entergy Finance Company preferred membership interests in an amount equal to what would be required to cure the default. The estimated value of this indirect guarantee is immaterial.

As discussed in the Form 10-K, in April 2020 the MPSC issued an order approving certification of the Sunflower Solar facility and its recovery through the interim capacity rate adjustment mechanism, subject to certain conditions. In May 2022 both Entergy Mississippi and the tax equity investor made capital contributions to the tax equity partnership that were then used to make an initial payment of $105 million for acquisition of the facility. In July 2022, pursuant to the MPSC’s April 2020 order, Entergy Mississippi submitted a compliance filing to the MPSC with updated calculations of the impact of the Sunflower Solar facility on rate base and revenue requirement for the Sunflower Solar facility and benefits of the tax equity partnership. In November 2022 the MPSC approved Entergy Mississippi’s July 2022 compliance filing and authorized the recovery of the costs of the Sunflower Solar facility through the interim capacity rate adjustment mechanism in the formula rate plan with rates effective in December 2022. Substantial completion of the Sunflower Solar facility was accepted by Entergy Mississippi in September 2022. A final payment is currently expected in fourth quarter 2022. Commercial operation at the Sunflower Solar facility commenced in September 2022. In April 2023 the final payment of $30.4 million for acquisition of the facility was made. See Note 14 to the financial statements hereinin the Form 10-K for a discussion of Entergy Mississippi’s purchase ofinvestment in the Sunflower Solar facility.

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 October 2022April 2023 meeting, the Board declared a dividend of $1.07 per share, an increase fromwhich is the previous $1.01same quarterly dividend per share that Entergy has paid since the third quarter 2021.2022.

As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the ninethree months ended September 30,March 31, 2023 and 2022 and 2021 were as follows:

Net cash flow provided by operating activities decreased $202increased $422 million for the ninethree months ended September 30, 2022March 31, 2023 compared to the ninethree months ended September 30, 2021March 31, 2022 primarily due to:

Net cash flow used in investing activities increased $507decreased $268 million for the ninethree months ended September 30, 2022March 31, 2023 compared to the ninethree months ended September 30, 2021March 31, 2022 primarily due to:

Net cash flow provided by financing activities increased $2,028$798 million for the ninethree months ended September 30, 2022March 31, 2023 compared to the ninethree months ended September 30, 2021March 31, 2022 primarily due to proceeds from securitization of $3,164$1,458 million received by the storm trust atII in the Entergy Louisiana March 2023 storm securitization. The increase was partially offset by long-term debt activity providing approximately $780 million of cash in 2023 compared to providing approximately $1,329 million of cash in 2022 and an increasea decrease of $807$104 million in net issuances of commercial paper in 20222023 compared to 2021. The increase was partially offset by:

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.

Some of the agreements to sell the power produced by Entergy Wholesale Commodities’ power plantsEntergy’s non-utility operations contain provisions that require an Entergy subsidiary to provide credit support to secure its obligations under the agreements. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee.  Cash and letters of credit are also acceptable forms of credit support. At September 30, 2022,March 31, 2023, based on power prices at that time, Entergy had liquidity exposure of $13$10 million under the guarantees in place supporting Entergy Wholesale CommoditiesEntergy’s non-utility operations transactions and $8$9 million of posted cash collateral.

See Note 1 to the financial statements in the Form 10-K for discussion of new accounting pronouncements.