ABOUT THIS PUBLICATION | ● uncertainty regarding the establishment of interim or permanent |
This publication is unaudited and should be used in conjunction with Entergy’s | sites for spent nuclear fuel and nuclear waste storage and disposal |
2013 Annual Report to Shareholders and Form 10-K filed with the Securities | ● variations in weather and the occurrence of hurricanes and other storms |
and Exchange Commission. It has been prepared for information purposes and | and disasters, including uncertainties associated with efforts to remediate |
is not intended for use in connection with any sale or purchase of, or any offer | the effects of hurricanes, ice storms, or other weather events and the recovery |
to buy, any securities of Entergy Corporation or its subsidiaries. | of costs associated with restoration, including accessing funded storm reserves, |
| federal and local cost recovery mechanisms, securitization, and insurance |
FORWARD-LOOKING INFORMATION | ● effects of climate change |
In this report and from time to time, Entergy Corporation makes statements concerning | ● changes in the quality and availability of water supplies and the related |
its expectations, beliefs, plans, objectives, goals, strategies, and future | regulation of water use and diversion |
events or performance. Such statements are “forward-looking statements” | ● Entergy’s ability to manage its capital projects and operation |
within the meaning of the Private Securities Litigation Reform Act of 1995. | and maintenance costs |
Words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “intend,” | ● Entergy’s ability to purchase and sell assets at attractive prices |
“expect,” “estimate,” “continue,” “potential,” “plan,” “predict,” “forecast,” | and on other attractive terms |
and other similar words or expressions are intended to identify forward-looking | ● the economic climate, and particularly economic conditions in Entergy’s |
statements but are not the only means to identify these statements. Although Entergy | Utility service area and the Northeast United States and events |
believes that these forward-looking statements and the underlying assumptions are | that could influence economic conditions in those areas |
reasonable, it cannot provide assurance that they will prove correct. Any | ● the effects of Entergy’s strategies to reduce tax payments |
forward-looking statement is based on information current as of the date of this | ● changes in the financial markets, particularly those affecting |
report and speaks only as of the date on which such statement is made. | the availability of capital and Entergy’s ability to refinance existing debt, execute |
Except to the extent required by the federal securities laws, Entergy undertakes | share repurchase programs, and fund investments and acquisitions |
no obligation to publicly update or revise any forward-looking statements, | ● actions of rating agencies, including changes in the ratings of |
whether as a result of new information, future events, or otherwise. | debt and preferred stock, changes in general corporate ratings, |
Forward-looking statements involve a number of risks and uncertainties. | and changes in the rating agencies’ ratings criteria |
There are factors that could cause actual results to differ materially from those | ● changes in inflation and interest rates |
expressed or implied in the forward-looking statements, including those | ● the effect of litigation and government investigations or proceedings |
factors discussed or incorporated by reference in (a) Item 1A. Risk Factors | ● changes in technology, including with respect to new, developing, or |
in the 2013 Form 10-K, (b) Management’s Financial Discussion and Analysis | alternative sources of generation |
in the 2013 Form 10-K, and (c) the following factors (in addition to others | ● the potential effects of threatened or actual terrorism, cyber attacks or data |
described elsewhere in this report and in subsequent securities filings): | security breaches, including increased security costs, and war or a |
● resolution of pending and future rate cases and negotiations, | catastrophic event such as a nuclear accident or a natural gas pipeline |
including various performance-based rate discussions, | explosion |
Entergy’s utility supply plan, and recovery of fuel and purchased power costs | ● Entergy’s ability to attract and retain talented management and directors |
● the termination of Entergy Arkansas’s participation in the System Agreement, | ● changes in accounting standards and corporate governance |
which occurred in December 2013, the termination of Entergy Mississippi's | ● declines in the market prices of marketable securities and |
participation in the System Agreement in November 2015, the termination of | resulting funding requirements for Entergy’s defined benefit |
Entergy Texas's, Entergy Gulf States Louisiana's, and Entergy Louisiana's | pension and other postretirement benefit plans |
participation in the System Agreement after expiration of the recently proposed | ● future wage and employee benefit costs, including changes |
60-month notice period or such other period as approved by the FERC | in discount rates and returns on benefit plan assets |
● regulatory and operating challenges and uncertainties and economic risks | ● changes in decommissioning trust fund values or earnings |
associated with the Utility operating companies’ move to the MISO RTO, | or in the timing of or cost to decommission nuclear plant sites |
which occurred in December 2013, including the effect of RTO rules and system | ● the implementation of the shutdown of Vermont Yankee by the end of 2014 |
conditions in the MISO markets, the allocation of MISO system transmission upgrade | and the related decommissioning of Vermont Yankee |
costs, and the effect of planning decisions that MISO makes with respect to future | ● the effectiveness of Entergy’s risk management policies and |
transmission investments by the Utility operating companies | procedures and the ability and willingness of its counterparties |
● changes in utility regulation, including the beginning or end of retail and wholesale | to satisfy their financial and performance commitments |
competition, the ability to recover net utility assets and other potential stranded | ● factors that could lead to impairment of long-lived assets |
costs, and the application of more stringent transmission reliability requirements | ● the ability to successfully complete merger, acquisition, or |
or market power criteria by the FERC | divestiture plans, regulatory or other limitations imposed as a |
● changes in regulation of nuclear generating facilities and nuclear materials and fuel, | result of merger, acquisition, or divestiture, and the success of |
including with respect to the planned or potential shutdown of nuclear generating facilities | the business following a merger, acquisition, or divestiture |
owned or operated by the Entergy Wholesale Commodities business, and the effects of |
new or existing safety or environmental concerns regarding nuclear power plants | REGULATION G COMPLIANCE |
and nuclear fuel | Financial performance measures shown in this report include those |
● resolution of pending or future applications, and related regulatory proceedings | calculated and presented in accordance with generally accepted |
and litigation, for license renewals or modifications or other authorizations required | accounting principles (GAAP), as well as those that are considered |
of nuclear generating facilities | non-GAAP measures. This report includes non-GAAP measures |
● the performance of and deliverability of power from Entergy’s generation | of operational earnings; operational adjusted EBITDA; operational return |
resources, including the capacity factors at its nuclear generating facilities | on average invested capital; operational return on average common or |
● Entergy’s ability to develop and execute on a point of view regarding future | members’ equity; operational price to earnings ratio; operational common |
prices of electricity, natural gas, and other energy-related commodities | dividend payout ratio; gross liquidity, debt to capital ratio, excluding |
● prices for power generated by Entergy’s merchant generating | securitization debt; net debt to net capital ratio, excluding securitization debt; |
facilities and the ability to hedge, meet credit support requirements for hedges, | net debt to net capital ratio including off-balance sheet liabilities, excluding |
sell power forward or otherwise reduce the market price risk associated | securitization debt; total debt, excluding assumption debt; debt to capital |
with those facilities, including the Entergy Wholesale Commodities nuclear plants | ratio, excluding assumption debt; and net debt to net capital ratio, excluding |
● the prices and availability of fuel and power Entergy must purchase | assumption debt when describing Entergy’s results of operations and financial |
for its Utility customers, and Entergy’s ability to meet credit support | performance. We have prepared reconciliations of these measures to the |
requirements for fuel and power supply contracts | most directly comparable GAAP measures. Reconciliations can be found |
● volatility and changes in markets for electricity, natural gas, | on pages 7, 9, and 57 – 67. |
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 and water emissions, and changes in costs of | |
compliance with environmental and other laws and regulations | |
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