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ABOUT THIS PUBLICATION | | ● effects of climate change, including the potential for increases in extreme weather events |
This publication is unaudited and should be used in conjunction with Entergy’s 2021 | | and sea levels or coastal land and wetland loss; |
Annual Report to Shareholders and Form 10-K filed with the Securities and Exchange | | ● the risk that an incident at any nuclear generation facility in the U.S. could lead to the |
Commission. It has been prepared for information purposes and is not intended for use | | assessment of significant retrospective assessments and/or retrospective insurance |
in connection with any sale or purchase of, or any offer to buy, any securities of Entergy | | premiums as a result of Entergy’s participation in a secondary financial protection system |
Corporation or its subsidiaries. | | and a utility industry mutual insurance company; |
| | ● changes in the quality and availability of water supplies and the related regulation of |
FORWARD-LOOKING INFORMATION | | water use and diversion; |
In this report and from time to time, Entergy Corporation makes statements concerning | | ● Entergy’s ability to manage its capital projects, including completion of projects timely |
its expectations, beliefs, plans, objectives, goals, projections, strategies, and future | | and within budget and to obtain the anticipated performance or other benefits, and its |
events or performance. Such statements are “forward-looking statements” within the | | operation and maintenance costs; |
meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” | | ● the effects of supply chain disruptions, including those driven by the COVID-19 global |
“will,” “could,” “project,” “believe,” “anticipate,” “intend,” “expect,” “estimate,” “continue,” | | pandemic or by trade-related governmental actions, on Entergy’s ability to complete its |
“potential,” “plan,” “predict,” “forecast,” and other similar words or expressions are | | capital projects in a timely and cost-effective manner; |
intended to identify forward-looking statements but are not the only means to identify | | ● Entergy’s ability to purchase and sell assets at attractive prices and on other attractive |
these statements. Although Entergy believes that these forward-looking statements and | | terms; |
the underlying assumptions are reasonable, it cannot provide assurance that they will | | ● the economic climate, and particularly economic conditions in Entergy’s Utility service |
prove correct. Any forward-looking statement is based on information current as of the | | area and events and circumstances that could influence economic conditions in those areas, |
date of this report and speaks only as of the date on which such statement is made. | | including power prices and inflation, and the risk that anticipated load growth may not |
Except to the extent required by the federal securities laws, Entergy undertakes no | | materialize; |
obligation to publicly update or revise any forward-looking statements, whether as a | | ● changes to federal income tax laws and regulations, including the continued impact of the |
result of new information, future events, or otherwise. | | Tax Cuts and Jobs Act and its intended and unintended consequences on financial |
Forward-looking statements involve a number of risks and uncertainties. There are | | results and future cash flows; |
factors that could cause actual results to differ materially from those expressed or | | ● the effects of Entergy’s strategies to reduce tax payments; |
implied in the forward-looking statements, including (a) those factors discussed or | | ● changes in the financial markets and regulatory requirements for the issuance of |
incorporated by reference in Item 1A. Risk Factors contained in the Form 10-K for | | securities, particularly as they affect access to capital and Entergy’s ability to refinance |
the year ended Dec. 31, 2021, (b) those factors discussed or incorporated by reference | | existing securities, and fund investments and acquisitions; |
in Management’s Financial Discussion and Analysis contained in the Form 10-K for the | | ● actions of rating agencies, including changes in the ratings of debt and preferred |
year ended Dec. 31, 2021, and (c) the following factors (in addition to others described | | stock, changes in general corporate ratings, and changes in the rating agencies’ ratings |
elsewhere in this report and in subsequent securities filings): | | criteria; |
● resolution of pending and future rate cases and related litigation, formula rate | | ● changes in inflation and interest rates; |
proceedings and related negotiations, including various performance-based rate | | ● the effects of litigation and government investigations or proceedings; |
discussions, Entergy’s utility supply plan, and recovery of fuel and purchased power costs, | | ● changes in technology, including (i) Entergy’s ability to implement new or emerging |
as well as delays in cost recovery resulting from these proceedings; | | technologies, (ii) the impact of changes relating to new, developing, or alternative |
● regulatory and operating challenges and uncertainties and economic risks associated | | sources of generation such as distributed energy and energy storage, renewable energy, |
with the Utility operating companies’ participation in MISO, including the benefits of | | energy efficiency, demand side management and other measures that reduce load and |
continued MISO participation, the effect of current or projected MISO market rules and | | government policies incentivizing development of the foregoing, and (iii) competition from |
market and system conditions in the MISO markets, the allocation of MISO system | | other companies offering products and services to Entergy’s customers based on new or |
transmission upgrade costs, the MISO-wide base rate of return on equity allowed or | | emerging technologies or alternative sources of generation; |
any MISO-related charges and credits required by the FERC, and the effect of planning | | ● Entergy's ability to effectively formulate and implement plans to reduce its carbon |
decisions that MISO makes with respect to future transmission investments by the | | emission rate and aggregate carbon emissions, including its commitment to achieve |
Utility operating companies; | | net-zero carbon emissions by 2050, and the potential impact on its business of |
● changes in utility regulation, including with respect to retail and wholesale competition, | | attempting to achieve such objectives; |
the ability to recover net utility assets and other potential stranded costs, and the | | ● the effects, including increased security costs, of threatened or actual terrorism, |
application of more stringent return on equity criteria, transmission reliability | | cyber-attacks or data security breaches, natural or man-made electromagnetic pulses |
requirements or market power criteria by the FERC or the U.S. Department of Justice; | | that affect transmission or generation infrastructure, accidents, and war or a catastrophic |
● changes in the regulation or regulatory oversight of Entergy’s owned or operated nuclear | | event such as a nuclear accident or a natural gas pipeline explosion; |
generating facilities and nuclear materials and fuel, and the effects of new or | | ● the effects of a global or geopolitical event or pandemic, such as the COVID-19 global |
existing safety or environmental concerns regarding nuclear power plants and fuel; | | pandemic and the military activities between Russia and Ukraine, including economic and |
● resolution of pending or future applications, and related regulatory proceedings and | | societal disruptions; volatility in the capital markets (and any related increased cost of |
litigation, for license modifications or other authorizations required of nuclear generating | | capital or any inability to access the capital markets or draw on available bank credit |
facilities and the effect of public and political opposition on these applications, regulatory | | facilities); reduced demand for electricity, particularly from commercial and industrial |
proceedings, and litigation; | | customers; increased or unrecoverable costs; supply chain, vendor, and contractor |
● the performance of and deliverability of power from Entergy’s generation resources, | | disruptions; delays in completion of capital or other construction projects, maintenance, and |
including the capacity factors at Entergy’s nuclear generating facilities; | | other operations activities, including prolonged or delayed outages; impacts to Entergy’s |
● increases in costs and capital expenditures that could result from changing regulatory | | workforce availability, health, or safety; increased cybersecurity risks as a result of many |
requirements, changing economic conditions, and emerging operating and industry issues, | | employees telecommuting; increased late or uncollectible customer payments; regulatory |
and the risks related to recovery of these costs and capital expenditures from Entergy’s | | delays; executive orders affecting, or increased regulation of, Entergy's business; changes |
customers (especially in an increasing cost environment); | | in credit ratings or outlooks as a result of any of the foregoing; or other adverse impacts on |
● the commitment of substantial human and capital resources required for the safe and | | Entergy’s ability to execute on its business strategies and initiatives or, more generally, on |
reliable operation and maintenance of Entergy’s nuclear generating facilities; | | Entergy’s results of operations, financial condition, and liquidity; |
● Entergy’s ability to develop and execute on a point of view regarding future prices of | | ● Entergy’s ability to attract and retain talented management, directors, and employees |
electricity, natural gas, and other energy-related commodities; | | with specialized skills; |
● the prices and availability of fuel and power Entergy must purchase for its Utility | | ● Entergy’s ability to attract, retain and manage an appropriately qualified workforce; |
customers, and Entergy’s ability to meet credit support requirements for fuel and power | | ● changes in accounting standards and corporate governance; |
supply contracts; | | ● declines in the market prices of marketable securities and resulting funding |
● volatility and changes in markets for electricity, natural gas, uranium, emissions | | requirements and the effects on benefits costs for Entergy’s defined benefit pension |
allowances, and other energy-related commodities, and the effect of those changes on | | and other postretirement benefit plans; |
Entergy and its customers; | | ● future wage and employee benefit costs, including changes in discount rates and |
● changes in law resulting from federal or state energy legislation or legislation | | returns on benefit plan assets; |
subjecting energy derivatives used in hedging and risk management transactions to | | ● changes in decommissioning trust fund values or earnings or in the timing of, |
governmental regulation; | | requirements for, or cost to decommission Entergy’s nuclear plant sites and the |