Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Entity Registrant Name | ENTERGY CORP /DE/ | |
Entity Central Index Key | 65,984 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 180,855,032 | |
Entergy Arkansas [Member] | ||
Entity Registrant Name | ENTERGY ARKANSAS, INC. | |
Entity Central Index Key | 7,323 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Entergy Louisiana [Member] | ||
Entity Registrant Name | ENTERGY LOUISIANA, LLC | |
Entity Central Index Key | 1,348,952 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entergy Mississippi [Member] | ||
Entity Registrant Name | ENTERGY MISSISSIPPI, INC. | |
Entity Central Index Key | 66,901 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Entergy New Orleans [Member] | ||
Entity Registrant Name | ENTERGY NEW ORLEANS, LLC | |
Entity Central Index Key | 71,508 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
Entergy Texas [Member] | ||
Entity Registrant Name | ENTERGY TEXAS, INC. | |
Entity Central Index Key | 1,427,437 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer | |
System Energy [Member] | ||
Entity Registrant Name | SYSTEM ENERGY RESOURCES, INC. | |
Entity Central Index Key | 202,584 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Filer Category | Non-accelerated Filer |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
OPERATING REVENUES | ||||||
Electric | $ 2,330,225 | $ 2,271,220 | $ 4,578,486 | $ 4,262,960 | ||
Natural gas | 29,943 | 30,075 | 86,638 | 73,426 | ||
Competitive businesses | 308,602 | 317,255 | 727,526 | 870,622 | ||
TOTAL | 2,668,770 | 2,618,550 | 5,392,650 | 5,207,008 | ||
Operation and Maintenance: | ||||||
Fuel, fuel-related expenses, and gas purchased for resale | 465,802 | 395,947 | 909,098 | 813,513 | ||
Purchased power | 417,034 | 416,497 | 813,058 | 774,264 | ||
Nuclear refueling outage expenses | 35,360 | 38,288 | 78,120 | 80,853 | ||
Other operation and maintenance | 840,103 | 794,967 | 1,623,687 | 1,641,825 | ||
Asset Write-Offs, Impairments, And Related Charges | 68,943 | 193,571 | 141,867 | 405,362 | ||
Decommissioning | 97,605 | 100,296 | 192,005 | 214,669 | ||
Taxes other than income taxes | 158,547 | 153,264 | 323,765 | 309,616 | ||
Depreciation and amortization | 350,485 | 350,328 | 697,471 | 697,593 | ||
Other regulatory charges (credits) - net | 143,294 | 6,553 | 186,319 | (78,749) | ||
TOTAL | 2,577,173 | 2,449,711 | 4,965,390 | 4,858,946 | ||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | 0 | 0 | (16,270) | ||
OPERATING INCOME | 91,597 | 168,839 | 427,260 | 364,332 | ||
OTHER INCOME | ||||||
Allowance for equity funds used during construction | 31,670 | 22,376 | 60,014 | 41,384 | ||
Investment Income, Net | 71,134 | 80,097 | 88,005 | 136,646 | ||
Miscellaneous - net | (48,491) | (32,202) | (79,849) | (47,391) | ||
TOTAL | 54,313 | 70,271 | 68,170 | 130,639 | ||
INTEREST EXPENSE | ||||||
Interest expense | 192,314 | 173,377 | 375,237 | 344,466 | ||
Allowance for borrowed funds used during construction | (14,668) | (10,523) | (27,933) | (19,565) | ||
TOTAL | 177,646 | 162,854 | 347,304 | 324,901 | ||
INCOME (LOSS) BEFORE INCOME TAXES | (31,736) | 76,256 | 148,126 | 170,070 | ||
Income taxes | (280,596) | (337,112) | (236,933) | (329,350) | ||
CONSOLIDATED NET INCOME | 248,860 | 413,368 | 385,059 | [1] | 499,420 | [1] |
Net Income (Loss) Attributable to Noncontrolling Interest, Preferred Unit Holders | 3,439 | 3,446 | 6,878 | 6,892 | ||
EARNINGS APPLICABLE TO COMMON STOCK | $ 245,421 | $ 409,922 | $ 378,181 | $ 492,528 | ||
Earnings per average common share: | ||||||
Basic (in dollars per share) | $ 1.36 | $ 2.28 | $ 2.09 | $ 2.75 | ||
Diluted (in dollars per share) | 1.34 | 2.27 | 2.08 | 2.74 | ||
Dividends declared per common share (in dollars per share) | $ 0.89 | $ 0.87 | $ 1.78 | $ 1.74 | ||
Basic average number of common shares outstanding (in shares) | 180,823,203 | 179,475,346 | 180,765,708 | 179,405,592 | ||
Diluted average number of common shares outstanding (in shares) | 182,982,630 | 180,234,694 | 182,208,328 | 180,032,233 | ||
Entergy Arkansas [Member] | ||||||
OPERATING REVENUES | ||||||
Electric | $ 494,605 | $ 496,662 | $ 1,045,629 | $ 971,013 | ||
Natural gas | 0 | 0 | ||||
Operation and Maintenance: | ||||||
Fuel, fuel-related expenses, and gas purchased for resale | 106,496 | 50,691 | 214,802 | 150,100 | ||
Purchased power | 64,839 | 74,552 | 136,811 | 129,685 | ||
Nuclear refueling outage expenses | 19,159 | 17,335 | 42,561 | 36,954 | ||
Other operation and maintenance | 177,792 | 168,190 | 347,150 | 331,198 | ||
Decommissioning | 14,985 | 14,106 | 29,745 | 28,001 | ||
Taxes other than income taxes | 24,445 | 25,128 | 52,350 | 49,179 | ||
Depreciation and amortization | 72,701 | 69,087 | 144,682 | 136,153 | ||
Other regulatory charges (credits) - net | (12,313) | 4,948 | (15,620) | (5,578) | ||
TOTAL | 468,104 | 424,037 | 952,481 | 855,692 | ||
OPERATING INCOME | 26,501 | 72,625 | 93,148 | 115,321 | ||
OTHER INCOME | ||||||
Allowance for equity funds used during construction | 4,471 | 5,432 | 8,479 | 9,782 | ||
Investment Income, Net | 2,478 | 14,195 | 9,292 | 21,127 | ||
Miscellaneous - net | (3,881) | (3,688) | (7,752) | (6,644) | ||
TOTAL | 3,068 | 15,939 | 10,019 | 24,265 | ||
INTEREST EXPENSE | ||||||
Interest expense | 30,917 | 28,514 | 60,683 | 55,766 | ||
Allowance for borrowed funds used during construction | (2,108) | (2,552) | (3,998) | (4,514) | ||
TOTAL | 28,809 | 25,962 | 56,685 | 51,252 | ||
INCOME (LOSS) BEFORE INCOME TAXES | 760 | 62,602 | 46,482 | 88,334 | ||
Income taxes | (81,796) | 24,052 | (72,329) | 35,480 | ||
CONSOLIDATED NET INCOME | 82,556 | 38,550 | 118,811 | 52,854 | ||
Net Income (Loss) Attributable to Noncontrolling Interest, Preferred Unit Holders | 357 | 357 | 714 | 714 | ||
EARNINGS APPLICABLE TO COMMON STOCK | 82,199 | 38,193 | 118,097 | 52,140 | ||
Entergy Louisiana [Member] | ||||||
OPERATING REVENUES | ||||||
Electric | 1,061,689 | 1,072,126 | 2,066,795 | 1,936,202 | ||
Natural gas | 11,099 | 11,308 | 35,337 | 28,015 | ||
TOTAL | 1,072,788 | 1,083,434 | 2,102,132 | 1,964,217 | ||
Operation and Maintenance: | ||||||
Fuel, fuel-related expenses, and gas purchased for resale | 200,528 | 180,056 | 381,309 | 334,100 | ||
Purchased power | 266,614 | 282,673 | 518,386 | 522,500 | ||
Nuclear refueling outage expenses | 12,671 | 12,764 | 25,770 | 24,949 | ||
Other operation and maintenance | 250,994 | 236,978 | 485,374 | 454,090 | ||
Decommissioning | 13,480 | 12,283 | 26,252 | 24,406 | ||
Taxes other than income taxes | 47,147 | 45,076 | 98,427 | 90,359 | ||
Depreciation and amortization | 122,177 | 116,107 | 242,920 | 231,737 | ||
Other regulatory charges (credits) - net | 9,017 | (2,521) | 32,214 | (76,708) | ||
TOTAL | 922,628 | 883,416 | 1,810,652 | 1,605,433 | ||
OPERATING INCOME | 150,160 | 200,018 | 291,480 | 358,784 | ||
OTHER INCOME | ||||||
Allowance for equity funds used during construction | 19,124 | 11,109 | 36,869 | 21,099 | ||
Investment Income, Net | 46,853 | 41,919 | 90,128 | 81,749 | ||
Miscellaneous - net | (22,770) | (8,889) | (30,435) | (18,031) | ||
TOTAL | 43,207 | 44,139 | 96,562 | 84,817 | ||
INTEREST EXPENSE | ||||||
Interest expense | 73,582 | 68,483 | 143,678 | 135,798 | ||
Allowance for borrowed funds used during construction | (9,451) | (5,541) | (18,214) | (10,715) | ||
TOTAL | 64,131 | 62,942 | 125,464 | 125,083 | ||
INCOME (LOSS) BEFORE INCOME TAXES | 129,236 | 181,215 | 262,578 | 318,518 | ||
Income taxes | (55,122) | 56,736 | (33,374) | 99,661 | ||
CONSOLIDATED NET INCOME | 184,358 | 124,479 | 295,952 | 218,857 | ||
Entergy Mississippi [Member] | ||||||
OPERATING REVENUES | ||||||
Electric | 353,689 | 291,212 | 669,432 | 549,655 | ||
Natural gas | 0 | 0 | ||||
Operation and Maintenance: | ||||||
Fuel, fuel-related expenses, and gas purchased for resale | 65,663 | 46,048 | 129,191 | 85,188 | ||
Purchased power | 97,154 | 75,253 | 184,610 | 146,323 | ||
Other operation and maintenance | 64,585 | 59,002 | 124,043 | 113,624 | ||
Taxes other than income taxes | 23,794 | 23,978 | 49,188 | 47,950 | ||
Depreciation and amortization | 38,359 | 35,442 | 76,541 | 70,759 | ||
Other regulatory charges (credits) - net | 127,935 | (4,306) | 128,228 | (10,143) | ||
TOTAL | 417,490 | 235,417 | 691,801 | 453,701 | ||
OPERATING INCOME | (63,801) | 55,795 | (22,369) | 95,954 | ||
OTHER INCOME | ||||||
Allowance for equity funds used during construction | 2,122 | 2,332 | 4,100 | 4,175 | ||
Investment Income, Net | 0 | 7 | 25 | 33 | ||
Miscellaneous - net | (1,411) | (1,086) | (1,982) | (2,062) | ||
TOTAL | 711 | 1,253 | 2,143 | 2,146 | ||
INTEREST EXPENSE | ||||||
Interest expense | 14,061 | 12,568 | 27,966 | 25,240 | ||
Allowance for borrowed funds used during construction | (890) | (913) | (1,718) | (1,633) | ||
TOTAL | 13,171 | 11,655 | 26,248 | 23,607 | ||
INCOME (LOSS) BEFORE INCOME TAXES | (76,261) | 45,393 | (46,474) | 74,493 | ||
Income taxes | (114,503) | 17,090 | (107,559) | 29,032 | ||
CONSOLIDATED NET INCOME | 38,242 | 28,303 | 61,085 | 45,461 | ||
Net Income (Loss) Attributable to Noncontrolling Interest, Preferred Unit Holders | 239 | 239 | 477 | 477 | ||
EARNINGS APPLICABLE TO COMMON STOCK | 38,003 | 28,064 | 60,608 | 44,984 | ||
Entergy New Orleans [Member] | ||||||
OPERATING REVENUES | ||||||
Electric | 159,602 | 157,455 | 315,420 | 299,800 | ||
Natural gas | 18,844 | 18,767 | 51,301 | 45,411 | ||
TOTAL | 178,446 | 176,222 | 366,721 | 345,211 | ||
Operation and Maintenance: | ||||||
Fuel, fuel-related expenses, and gas purchased for resale | 15,366 | 22,961 | 39,105 | 53,036 | ||
Purchased power | 73,789 | 73,105 | 156,945 | 141,464 | ||
Other operation and maintenance | 28,420 | 25,079 | 56,719 | 47,369 | ||
Taxes other than income taxes | 12,851 | 13,416 | 27,983 | 26,262 | ||
Depreciation and amortization | 13,950 | 13,020 | 27,697 | 26,070 | ||
Other regulatory charges (credits) - net | 6,127 | 818 | 12,460 | 1,203 | ||
TOTAL | 150,503 | 148,399 | 320,909 | 295,404 | ||
OPERATING INCOME | 27,943 | 27,823 | 45,812 | 49,807 | ||
OTHER INCOME | ||||||
Allowance for equity funds used during construction | 1,217 | 552 | 2,068 | 1,002 | ||
Investment Income, Net | 207 | 164 | 300 | 299 | ||
Miscellaneous - net | (1,404) | (177) | (1,741) | (301) | ||
TOTAL | 20 | 539 | 627 | 1,000 | ||
INTEREST EXPENSE | ||||||
Interest expense | 5,269 | 5,356 | 10,548 | 10,699 | ||
Allowance for borrowed funds used during construction | (450) | (193) | (764) | (351) | ||
TOTAL | 4,819 | 5,163 | 9,784 | 10,348 | ||
INCOME (LOSS) BEFORE INCOME TAXES | 23,144 | 23,199 | 36,655 | 40,459 | ||
Income taxes | 4,875 | 8,317 | 7,504 | 14,599 | ||
CONSOLIDATED NET INCOME | 18,269 | 14,882 | 29,151 | 25,860 | ||
Net Income (Loss) Attributable to Noncontrolling Interest, Preferred Unit Holders | 0 | 241 | 0 | 482 | ||
EARNINGS APPLICABLE TO COMMON STOCK | 18,269 | 14,641 | 29,151 | 25,378 | ||
Entergy Texas [Member] | ||||||
OPERATING REVENUES | ||||||
Electric | 403,486 | 378,488 | 752,426 | 742,415 | ||
Natural gas | 0 | 0 | ||||
Operation and Maintenance: | ||||||
Fuel, fuel-related expenses, and gas purchased for resale | 57,089 | 46,142 | 75,795 | 104,155 | ||
Purchased power | 150,568 | 160,325 | 310,260 | 310,709 | ||
Other operation and maintenance | 59,848 | 56,562 | 112,522 | 110,246 | ||
Taxes other than income taxes | 20,306 | 19,251 | 40,709 | 38,695 | ||
Depreciation and amortization | 31,141 | 29,373 | 61,907 | 57,484 | ||
Other regulatory charges (credits) - net | 25,897 | 19,033 | 51,514 | 34,260 | ||
TOTAL | 344,849 | 330,686 | 652,707 | 655,549 | ||
OPERATING INCOME | 58,637 | 47,802 | 99,719 | 86,866 | ||
OTHER INCOME | ||||||
Allowance for equity funds used during construction | 1,833 | 1,632 | 3,494 | 2,913 | ||
Investment Income, Net | 542 | 211 | 1,097 | 412 | ||
Miscellaneous - net | (735) | (646) | (622) | (1,050) | ||
TOTAL | 1,640 | 1,197 | 3,969 | 2,275 | ||
INTEREST EXPENSE | ||||||
Interest expense | 21,835 | 21,427 | 43,886 | 43,235 | ||
Allowance for borrowed funds used during construction | (1,033) | (1,001) | (1,971) | (1,762) | ||
TOTAL | 20,802 | 20,426 | 41,915 | 41,473 | ||
INCOME (LOSS) BEFORE INCOME TAXES | 39,475 | 28,573 | 61,773 | 47,668 | ||
Income taxes | 8,686 | 7,472 | 13,634 | 15,713 | ||
CONSOLIDATED NET INCOME | 30,789 | 21,101 | 48,139 | 31,955 | ||
System Energy [Member] | ||||||
OPERATING REVENUES | ||||||
Electric | 112,456 | 164,956 | 260,899 | 319,743 | ||
Operation and Maintenance: | ||||||
Fuel, fuel-related expenses, and gas purchased for resale | 2,030 | 21,660 | 30,455 | 36,994 | ||
Nuclear refueling outage expenses | 2,820 | 4,387 | 6,792 | 9,160 | ||
Other operation and maintenance | 48,695 | 51,992 | 94,034 | 99,454 | ||
Decommissioning | 8,541 | 13,452 | 16,998 | 26,684 | ||
Taxes other than income taxes | 6,866 | 6,664 | 13,963 | 13,088 | ||
Depreciation and amortization | 33,467 | 35,187 | 66,788 | 70,628 | ||
Other regulatory charges (credits) - net | (13,369) | (11,421) | (22,478) | (21,783) | ||
TOTAL | 89,050 | 121,921 | 206,552 | 234,225 | ||
OPERATING INCOME | 23,406 | 43,035 | 54,347 | 85,518 | ||
OTHER INCOME | ||||||
Allowance for equity funds used during construction | 2,904 | 1,318 | 5,004 | 2,412 | ||
Investment Income, Net | 2,943 | 3,723 | 9,829 | 8,397 | ||
Miscellaneous - net | (1,794) | (2,421) | (2,970) | (3,488) | ||
TOTAL | 4,053 | 2,620 | 11,863 | 7,321 | ||
INTEREST EXPENSE | ||||||
Interest expense | 9,656 | 9,181 | 18,981 | 18,300 | ||
Allowance for borrowed funds used during construction | (736) | (322) | (1,268) | (589) | ||
TOTAL | 8,920 | 8,859 | 17,713 | 17,711 | ||
INCOME (LOSS) BEFORE INCOME TAXES | 18,539 | 36,796 | 48,497 | 75,128 | ||
Income taxes | (4,848) | 17,446 | 2,802 | 35,431 | ||
CONSOLIDATED NET INCOME | $ 23,387 | $ 19,350 | $ 45,695 | $ 39,697 | ||
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
OPERATING ACTIVITIES | |||
Consolidated net income | [1] | $ 385,059 | $ 499,420 |
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: | |||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 1,027,609 | 1,042,671 | |
Deferred income taxes, investment tax credits, and non-current taxes accrued | 88,732 | (324,227) | |
Impairment of Long-Lived Assets Held-for-use | 51,503 | 220,828 | |
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | 0 | (16,270) | |
Changes in working capital: | |||
Receivables | (45,515) | 6,091 | |
Fuel inventory | 8,512 | 6,213 | |
Accounts payable | 97,464 | 9,687 | |
Taxes accrued | (8,092) | (2,202) | |
Interest accrued | (2,056) | (3,947) | |
Deferred fuel costs | (132,263) | (127,945) | |
Other working capital accounts | (134,982) | (91,505) | |
Changes in provisions for estimated losses | 27,443 | (7,340) | |
Changes in other regulatory assets | 106,712 | 62,612 | |
Increase (Decrease) in Regulatory Liabilities | (247,239) | (8,250) | |
Changes in pensions and other postretirement liabilities | (181,278) | (180,346) | |
Other Noncash Income (Expense) | 38,314 | (265,807) | |
Net cash flow provided by operating activities | 1,079,923 | 819,683 | |
INVESTING ACTIVITIES | |||
Construction/capital expenditures | (1,885,419) | (1,719,712) | |
Allowance for equity funds used during construction | 60,335 | 41,877 | |
Nuclear fuel purchases | (90,321) | (209,756) | |
Payments for Nuclear Fuel | (90,321) | (209,756) | |
Payments to storm reserve escrow account | (2,744) | (1,124) | |
Receipts from storm reserve escrow account | 0 | 8,836 | |
Decrease (increase) in other investments | (10,769) | 1,705 | |
Proceeds from Sale of Productive Assets | 9,163 | 100,000 | |
Proceeds from nuclear decommissioning trust fund sales | 1,801,170 | 1,462,698 | |
Investment in nuclear decommissioning trust funds | (1,826,384) | (1,516,406) | |
Litigation proceeds for reimbursement of spent nuclear fuel storage costs | 0 | 25,493 | |
Proceeds from insurance | 10,523 | 26,157 | |
Changes in securitization account | 4,754 | 10,028 | |
Net cash flow used in investing activities | (1,929,692) | (1,770,204) | |
Proceeds from the issuance of: | |||
Proceeds from the issuance of long-term debt | 3,359,193 | 1,036,529 | |
Common stock and treasury stock | 3,691 | 7,819 | |
Retirement of long-term debt | (2,569,131) | (866,337) | |
Changes in credit borrowings and commercial paper - net | 405,795 | 833,957 | |
Dividends paid: | |||
Common stock | (321,821) | (312,209) | |
Preferred stock | [1] | (6,878) | (6,892) |
Other | 10,434 | 4,305 | |
Net cash flow provided by financing activities | 881,283 | 697,172 | |
Net increase (decrease) in cash and cash equivalents | 31,514 | (253,349) | |
Cash and cash equivalents at beginning of period | 781,273 | 1,187,844 | |
Cash and cash equivalents at end of period | 812,787 | 934,495 | |
Cash paid / (received) during the period for: | |||
Interest - net of amount capitalized | 362,629 | 334,555 | |
Income taxes | 14,145 | (14,673) | |
Entergy Arkansas [Member] | |||
OPERATING ACTIVITIES | |||
Consolidated net income | 118,811 | 52,854 | |
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: | |||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 221,935 | 198,082 | |
Deferred income taxes, investment tax credits, and non-current taxes accrued | (32,906) | 38,005 | |
Changes in working capital: | |||
Receivables | (6,091) | 12,092 | |
Fuel inventory | 12,289 | (1,602) | |
Accounts payable | (25,035) | (29,109) | |
Taxes accrued | 66,500 | 937 | |
Interest accrued | 1,260 | 1,816 | |
Deferred fuel costs | (5,896) | (48,442) | |
Other working capital accounts | (8,750) | (32,055) | |
Changes in provisions for estimated losses | 12,453 | 7,457 | |
Changes in other regulatory assets | 8,587 | (5,592) | |
Increase (Decrease) in Regulatory Liabilities | (111,600) | 24,890 | |
Changes in pensions and other postretirement liabilities | (37,601) | (40,637) | |
Other Noncash Income (Expense) | 12,639 | 12,465 | |
Net cash flow provided by operating activities | 226,595 | 191,161 | |
INVESTING ACTIVITIES | |||
Construction/capital expenditures | (350,429) | (381,197) | |
Allowance for equity funds used during construction | 8,732 | 10,198 | |
Change in money pool receivable - net | (57,708) | 0 | |
Nuclear fuel purchases | (23,342) | (92,927) | |
Payments for Nuclear Fuel | (23,342) | (92,927) | |
Proceeds from sale of nuclear fuel | 30,907 | 51,029 | |
Proceeds from nuclear decommissioning trust fund sales | 121,440 | 167,329 | |
Investment in nuclear decommissioning trust funds | (128,598) | (173,324) | |
Proceeds from insurance | 7,043 | 0 | |
Changes in securitization account | (279) | 571 | |
Net cash flow used in investing activities | (392,234) | (418,321) | |
Proceeds from the issuance of: | |||
Proceeds from the issuance of long-term debt | 464,544 | 222,937 | |
Retirement of long-term debt | (206,843) | (6,799) | |
Change in money pool payable - net | (166,137) | (37,563) | |
Changes in credit borrowings and commercial paper - net | (49,974) | 31,436 | |
Dividends paid: | |||
Preferred stock | (714) | (714) | |
Other | 1,615 | 431 | |
Net cash flow provided by financing activities | 392,491 | 209,728 | |
Net increase (decrease) in cash and cash equivalents | 226,852 | (17,432) | |
Cash and cash equivalents at beginning of period | 6,216 | 20,509 | |
Cash and cash equivalents at end of period | 233,068 | 3,077 | |
Cash paid / (received) during the period for: | |||
Interest - net of amount capitalized | 56,900 | 51,232 | |
Proceeds from Contributions from Parent | 350,000 | 0 | |
Entergy Louisiana [Member] | |||
OPERATING ACTIVITIES | |||
Consolidated net income | 295,952 | 218,857 | |
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: | |||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 323,188 | 300,805 | |
Deferred income taxes, investment tax credits, and non-current taxes accrued | 119,378 | 220,492 | |
Changes in working capital: | |||
Receivables | (23,815) | 950 | |
Fuel inventory | (2,581) | 4,534 | |
Accounts payable | 17,324 | 42,079 | |
Taxes accrued | (56,076) | 52,686 | |
Interest accrued | 790 | (2,883) | |
Deferred fuel costs | (68,741) | (74,113) | |
Other working capital accounts | (6,053) | (61,515) | |
Changes in provisions for estimated losses | 5,803 | (6,108) | |
Changes in other regulatory assets | 42,203 | 39,711 | |
Increase (Decrease) in Regulatory Liabilities | (8,811) | (64,293) | |
Changes in pensions and other postretirement liabilities | (32,970) | (38,175) | |
Other Noncash Income (Expense) | (22,399) | (99,272) | |
Net cash flow provided by operating activities | 583,192 | 533,755 | |
INVESTING ACTIVITIES | |||
Construction/capital expenditures | (880,785) | (755,158) | |
Allowance for equity funds used during construction | 36,869 | 21,099 | |
Change in money pool receivable - net | 4,394 | (33,039) | |
Nuclear fuel purchases | (14,740) | (156,246) | |
Payments for Nuclear Fuel | (14,740) | (156,246) | |
Proceeds from sale of nuclear fuel | 36,301 | 28,884 | |
Payments to storm reserve escrow account | (1,984) | (802) | |
Receipts from storm reserve escrow account | 0 | 8,836 | |
Proceeds from nuclear decommissioning trust fund sales | 169,407 | 125,600 | |
Investment in nuclear decommissioning trust funds | (189,721) | (144,768) | |
Proceeds from insurance | 3,480 | 5,305 | |
Changes in securitization account | (1,423) | 79 | |
Net cash flow used in investing activities | (838,202) | (900,210) | |
Proceeds from the issuance of: | |||
Proceeds from the issuance of long-term debt | 1,088,941 | 532,219 | |
Retirement of long-term debt | (744,222) | (101,789) | |
Changes in credit borrowings and commercial paper - net | (43,540) | 30,696 | |
Dividends paid: | |||
Common stock | (56,000) | (91,250) | |
Other | 2,952 | (1,988) | |
Net cash flow provided by financing activities | 248,131 | 367,888 | |
Net increase (decrease) in cash and cash equivalents | (6,879) | 1,433 | |
Cash and cash equivalents at beginning of period | 35,907 | 213,850 | |
Cash and cash equivalents at end of period | 29,028 | 215,283 | |
Cash paid / (received) during the period for: | |||
Interest - net of amount capitalized | 138,625 | 134,513 | |
Income taxes | (2,973) | (116,937) | |
Entergy Mississippi [Member] | |||
OPERATING ACTIVITIES | |||
Consolidated net income | 61,085 | 45,461 | |
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: | |||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 76,541 | 70,759 | |
Deferred income taxes, investment tax credits, and non-current taxes accrued | 29,577 | 31,740 | |
Changes in working capital: | |||
Receivables | (32,365) | (7,952) | |
Fuel inventory | (977) | 6,312 | |
Accounts payable | 29,476 | (1,398) | |
Taxes accrued | (45,736) | (21,361) | |
Interest accrued | (3,792) | 40 | |
Deferred fuel costs | 6,532 | (13,622) | |
Other working capital accounts | (9,698) | (1,473) | |
Changes in provisions for estimated losses | 7,242 | (6,699) | |
Changes in other regulatory assets | (666) | (26,958) | |
Increase (Decrease) in Regulatory Liabilities | (127,047) | (4,237) | |
Changes in pensions and other postretirement liabilities | (9,336) | (10,692) | |
Other Noncash Income (Expense) | 125,982 | (6,081) | |
Net cash flow provided by operating activities | 106,818 | 53,839 | |
INVESTING ACTIVITIES | |||
Construction/capital expenditures | (187,219) | (199,873) | |
Allowance for equity funds used during construction | 4,100 | 4,175 | |
Change in money pool receivable - net | 1,633 | 10,595 | |
Decrease (increase) in other investments | (863) | (584) | |
Net cash flow used in investing activities | (182,349) | (185,687) | |
Proceeds from the issuance of: | |||
Change in money pool payable - net | 63,394 | 56,299 | |
Dividends paid: | |||
Preferred stock | (477) | (477) | |
Other | 6,536 | (86) | |
Net cash flow provided by financing activities | 69,453 | 55,736 | |
Net increase (decrease) in cash and cash equivalents | (6,078) | (76,112) | |
Cash and cash equivalents at beginning of period | 6,096 | 76,834 | |
Cash and cash equivalents at end of period | 18 | 722 | |
Cash paid / (received) during the period for: | |||
Interest - net of amount capitalized | 30,490 | 24,021 | |
Income taxes | 0 | (15,087) | |
Entergy New Orleans [Member] | |||
OPERATING ACTIVITIES | |||
Consolidated net income | 29,151 | 25,860 | |
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: | |||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 27,697 | 26,070 | |
Deferred income taxes, investment tax credits, and non-current taxes accrued | 22,813 | 14,764 | |
Changes in working capital: | |||
Receivables | (10,930) | (5,979) | |
Fuel inventory | 1,833 | (465) | |
Accounts payable | 5,073 | (8,761) | |
Taxes accrued | (10,602) | 38 | |
Interest accrued | (459) | (469) | |
Deferred fuel costs | (27,056) | 2,087 | |
Other working capital accounts | (9,524) | (11,774) | |
Changes in provisions for estimated losses | 438 | (1,794) | |
Changes in other regulatory assets | 11,957 | 2,719 | |
Increase (Decrease) in Regulatory Liabilities | 3,042 | (610) | |
Changes in pensions and other postretirement liabilities | (7,725) | (8,049) | |
Other Noncash Income (Expense) | (1,769) | 3,113 | |
Net cash flow provided by operating activities | 33,939 | 36,750 | |
INVESTING ACTIVITIES | |||
Construction/capital expenditures | (85,324) | (48,683) | |
Allowance for equity funds used during construction | 2,068 | 1,002 | |
Change in money pool receivable - net | 12,723 | (1,745) | |
Payments to storm reserve escrow account | (544) | (235) | |
Receipts from storm reserve escrow account | 3 | 0 | |
Changes in securitization account | (11) | 656 | |
Net cash flow used in investing activities | (71,085) | (49,005) | |
Proceeds from the issuance of: | |||
Retirement of long-term debt | (5,342) | (5,114) | |
Change in money pool payable - net | 23,080 | 0 | |
Dividends paid: | |||
Common stock | (14,500) | (24,150) | |
Preferred stock | 0 | (482) | |
Other | 1,193 | 462 | |
Net cash flow provided by financing activities | 4,431 | (29,284) | |
Net increase (decrease) in cash and cash equivalents | (32,715) | (41,539) | |
Cash and cash equivalents at beginning of period | 32,741 | 103,068 | |
Cash and cash equivalents at end of period | 26 | 61,529 | |
Cash paid / (received) during the period for: | |||
Interest - net of amount capitalized | 10,483 | 10,637 | |
Entergy Texas [Member] | |||
OPERATING ACTIVITIES | |||
Consolidated net income | 48,139 | 31,955 | |
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: | |||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 61,907 | 57,484 | |
Deferred income taxes, investment tax credits, and non-current taxes accrued | (19,785) | (16,766) | |
Changes in working capital: | |||
Receivables | (25,987) | (15,969) | |
Fuel inventory | (1,710) | (4,813) | |
Accounts payable | 906 | 24,900 | |
Taxes accrued | 20,439 | 23,064 | |
Interest accrued | (678) | (471) | |
Deferred fuel costs | (37,103) | 6,144 | |
Other working capital accounts | 9,614 | 4,132 | |
Changes in provisions for estimated losses | 434 | 83 | |
Changes in other regulatory assets | 39,592 | 45,306 | |
Increase (Decrease) in Regulatory Liabilities | 10,072 | (2,928) | |
Changes in pensions and other postretirement liabilities | (13,330) | (13,286) | |
Other Noncash Income (Expense) | (2,031) | (6,438) | |
Net cash flow provided by operating activities | 90,479 | 132,397 | |
INVESTING ACTIVITIES | |||
Construction/capital expenditures | (169,856) | (155,755) | |
Allowance for equity funds used during construction | 3,562 | 2,992 | |
Change in money pool receivable - net | 34,902 | 681 | |
Decrease (increase) in other investments | 0 | 2,431 | |
Changes in securitization account | 6,467 | 8,722 | |
Net cash flow used in investing activities | (124,925) | (140,929) | |
Proceeds from the issuance of: | |||
Retirement of long-term debt | (39,722) | (38,134) | |
Change in money pool payable - net | 0 | 39,222 | |
Dividends paid: | |||
Other | (946) | 2,328 | |
Net cash flow provided by financing activities | (40,668) | 3,416 | |
Net increase (decrease) in cash and cash equivalents | (75,114) | (5,116) | |
Cash and cash equivalents at beginning of period | 115,513 | 6,181 | |
Cash and cash equivalents at end of period | 40,399 | 1,065 | |
Cash paid / (received) during the period for: | |||
Interest - net of amount capitalized | 43,188 | 42,430 | |
Income taxes | (624) | (1,446) | |
System Energy [Member] | |||
OPERATING ACTIVITIES | |||
Consolidated net income | 45,695 | 39,697 | |
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities: | |||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization | 109,682 | 128,679 | |
Deferred income taxes, investment tax credits, and non-current taxes accrued | 7,010 | 35,498 | |
Changes in working capital: | |||
Receivables | 14,093 | 10,077 | |
Accounts payable | 32,681 | 3,469 | |
Taxes accrued | (7,100) | (10,086) | |
Interest accrued | 785 | (609) | |
Other working capital accounts | (64,758) | 2,960 | |
Changes in other regulatory assets | (16,939) | (4,904) | |
Increase (Decrease) in Regulatory Liabilities | (12,894) | 35,708 | |
Changes in pensions and other postretirement liabilities | (6,551) | (8,116) | |
Other Noncash Income (Expense) | 21,056 | (60,913) | |
Net cash flow provided by operating activities | 122,760 | 171,460 | |
INVESTING ACTIVITIES | |||
Construction/capital expenditures | (105,035) | (32,799) | |
Allowance for equity funds used during construction | 5,004 | 2,412 | |
Change in money pool receivable - net | 47,531 | (54,860) | |
Nuclear fuel purchases | (99,164) | (22,510) | |
Payments for Nuclear Fuel | (99,164) | (22,510) | |
Proceeds from sale of nuclear fuel | 0 | 60,188 | |
Proceeds from nuclear decommissioning trust fund sales | 199,403 | 253,487 | |
Investment in nuclear decommissioning trust funds | (206,695) | (271,901) | |
Net cash flow used in investing activities | (158,956) | (65,983) | |
Proceeds from the issuance of: | |||
Proceeds from the issuance of long-term debt | 99,985 | 0 | |
Retirement of long-term debt | (50,002) | (50,001) | |
Changes in credit borrowings and commercial paper - net | 21,043 | 36,289 | |
Dividends paid: | |||
Common stock | (63,240) | 0 | |
Other | 0 | (28) | |
Net cash flow provided by financing activities | 7,786 | (13,740) | |
Net increase (decrease) in cash and cash equivalents | (28,410) | 91,737 | |
Cash and cash equivalents at beginning of period | 287,187 | 245,863 | |
Cash and cash equivalents at end of period | 258,777 | 337,600 | |
Cash paid / (received) during the period for: | |||
Interest - net of amount capitalized | $ 8,592 | $ 17,656 | |
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Cash and cash equivalents: | ||||
Cash | $ 55,197 | $ 56,629 | ||
Temporary cash investments | 757,590 | 724,644 | ||
Total cash and cash equivalents | 812,787 | 781,273 | $ 934,495 | $ 1,187,844 |
Accounts receivable: | ||||
Customer | 662,746 | 673,347 | ||
Allowance for doubtful accounts | (14,545) | (13,587) | ||
Other | 150,084 | 169,377 | ||
Accrued unbilled revenues | 460,181 | 383,813 | ||
Total accounts receivable | 1,258,466 | 1,212,950 | ||
Deferred fuel costs | 114,293 | 95,746 | ||
Fuel inventory - at average cost | 174,131 | 182,643 | ||
Materials and supplies - at average cost | 752,520 | 723,222 | ||
Deferred nuclear refueling outage costs | 172,608 | 133,164 | ||
Prepayments and other | 249,645 | 156,333 | ||
TOTAL | 3,534,450 | 3,285,331 | ||
OTHER PROPERTY AND INVESTMENTS | ||||
Investment in affiliates - at equity | 198 | 198 | ||
Decommissioning trust funds | 7,217,298 | 7,211,993 | ||
Non-utility property - at cost (less accumulated depreciation) | 294,548 | 260,980 | ||
Other | 434,066 | 441,862 | ||
TOTAL | 7,946,110 | 7,915,033 | ||
PROPERTY, PLANT, AND EQUIPMENT | ||||
Electric | 47,805,468 | 47,287,370 | ||
Property under capital lease | 620,419 | 620,544 | ||
Natural gas | 477,715 | 453,162 | ||
Construction work in progress | 2,559,790 | 1,980,508 | ||
Nuclear fuel | 866,229 | 923,200 | ||
TOTAL PROPERTY, PLANT, AND EQUIPMENT | 52,329,621 | 51,264,784 | ||
Less - accumulated depreciation and amortization | 21,817,508 | 21,600,424 | ||
PROPERTY, PLANT, AND EQUIPMENT - NET | 30,512,113 | 29,664,360 | ||
Regulatory assets: | ||||
Other regulatory assets | 4,828,973 | 4,935,689 | ||
Deferred fuel costs | 239,397 | 239,298 | ||
Goodwill | 377,172 | 377,172 | ||
Accumulated deferred income taxes | 17,768 | 178,204 | ||
Other | 166,666 | 112,062 | ||
TOTAL | 5,629,976 | 5,842,425 | ||
TOTAL ASSETS | 47,622,649 | 46,707,149 | ||
CURRENT LIABILITIES | ||||
Currently maturing long-term debt | 1,016,908 | 760,007 | ||
Notes payable and commercial paper | 1,984,103 | 1,578,308 | ||
Accounts payable | 1,459,432 | 1,452,216 | ||
Customer deposits | 404,880 | 401,330 | ||
Taxes Payable, Current | 206,874 | 214,967 | ||
Interest accrued | 185,916 | 187,972 | ||
Deferred fuel costs | 32,904 | 146,522 | ||
Obligations under capital leases | 1,442 | 1,502 | ||
Pension and other postretirement liabilities | 61,580 | 71,612 | ||
Current portion of regulatory liability for income taxes - net related to unprotected ADIT | 710,108 | 0 | ||
Other | 167,926 | 221,771 | ||
TOTAL | 6,232,073 | 5,036,207 | ||
NON-CURRENT LIABILITIES | ||||
Accumulated deferred income taxes and taxes accrued | 4,434,308 | 4,466,503 | ||
Accumulated deferred investment tax credits | 215,369 | 219,634 | ||
Regulatory liability for income taxes - net | 1,901,043 | 2,900,204 | ||
Obligations under capital leases | 21,263 | 22,015 | ||
Other regulatory liabilities | 1,630,335 | 1,588,520 | ||
Decommissioning and asset retirement cost liabilities | 6,398,980 | 6,185,814 | ||
Accumulated provisions | 505,764 | 478,273 | ||
Pension and other postretirement liabilities | 2,739,407 | 2,910,654 | ||
Long-term debt | 14,857,686 | 14,315,259 | ||
Other | 466,189 | 393,748 | ||
TOTAL | 33,170,344 | 33,480,624 | ||
Subsidiaries' preferred stock without sinking fund | 197,771 | 197,803 | ||
Common Shareholders' Equity: | ||||
Common stock | 2,548 | 2,548 | ||
Paid-in capital | 5,429,404 | 5,433,433 | ||
Retained earnings | 8,578,276 | 7,977,702 | ||
Accumulated other comprehensive loss | (613,642) | (23,531) | 52,773 | (34,971) |
Less - treasury stock, at cost | 5,374,125 | 5,397,637 | ||
TOTAL | 8,022,461 | 7,992,515 | ||
TOTAL | 8,022,461 | 7,992,515 | 8,370,856 | 8,081,809 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 47,622,649 | 46,707,149 | ||
Entergy Arkansas [Member] | ||||
Cash and cash equivalents: | ||||
Cash | 239 | 6,184 | ||
Temporary cash investments | 232,829 | 32 | ||
Total cash and cash equivalents | 233,068 | 6,216 | 3,077 | 20,509 |
Securitization recovery trust account | 4,027 | 3,748 | ||
Accounts receivable: | ||||
Customer | 108,351 | 110,016 | ||
Allowance for doubtful accounts | (1,086) | (1,063) | ||
Associated companies | 93,367 | 38,765 | ||
Other | 44,978 | 65,209 | ||
Accrued unbilled revenues | 136,236 | 105,120 | ||
Total accounts receivable | 381,846 | 318,047 | ||
Deferred fuel costs | 69,099 | 63,302 | ||
Fuel inventory - at average cost | 17,069 | 29,358 | ||
Materials and supplies - at average cost | 193,849 | 192,853 | ||
Deferred nuclear refueling outage costs | 61,618 | 56,485 | ||
Prepayments and other | 22,112 | 12,108 | ||
TOTAL | 982,688 | 682,117 | ||
OTHER PROPERTY AND INVESTMENTS | ||||
Decommissioning trust funds | 954,400 | 944,890 | ||
Other | 785 | 3,160 | ||
TOTAL | 955,185 | 948,050 | ||
PROPERTY, PLANT, AND EQUIPMENT | ||||
Electric | 11,252,167 | 11,059,538 | ||
Construction work in progress | 331,715 | 280,888 | ||
Nuclear fuel | 219,762 | 277,345 | ||
TOTAL PROPERTY, PLANT, AND EQUIPMENT | 11,803,644 | 11,617,771 | ||
Less - accumulated depreciation and amortization | 4,848,505 | 4,762,352 | ||
PROPERTY, PLANT, AND EQUIPMENT - NET | 6,955,139 | 6,855,419 | ||
Regulatory assets: | ||||
Other regulatory assets | 1,558,850 | 1,567,437 | ||
Deferred fuel costs | 67,195 | 67,096 | ||
Other | 16,263 | 13,910 | ||
TOTAL | 1,642,308 | 1,648,443 | ||
TOTAL ASSETS | 10,535,320 | 10,134,029 | ||
CURRENT LIABILITIES | ||||
Currently maturing long-term debt | 41,700 | 0 | ||
Short-term borrowings | 0 | 49,974 | ||
Associated companies accounts payable | 187,846 | 365,915 | ||
Other | 174,639 | 215,942 | ||
Customer deposits | 98,551 | 97,687 | ||
Taxes Payable, Current | 113,821 | 47,321 | ||
Interest accrued | 19,475 | 18,215 | ||
Current portion of regulatory liability for income taxes - net related to unprotected ADIT | 305,697 | 0 | ||
Other | 34,052 | 29,922 | ||
TOTAL | 975,781 | 824,976 | ||
NON-CURRENT LIABILITIES | ||||
Accumulated deferred income taxes and taxes accrued | 1,165,690 | 1,190,669 | ||
Accumulated deferred investment tax credits | 33,503 | 34,104 | ||
Regulatory liability for income taxes - net | 565,811 | 985,823 | ||
Other regulatory liabilities | 366,306 | 363,591 | ||
Decommissioning and asset retirement cost liabilities | 1,011,589 | 981,213 | ||
Accumulated provisions | 47,182 | 34,729 | ||
Pension and other postretirement liabilities | 315,711 | 353,274 | ||
Long-term debt | 3,170,724 | 2,952,399 | ||
Other | 6,822 | 5,147 | ||
TOTAL | 6,683,338 | 6,900,949 | ||
Subsidiaries' preferred stock without sinking fund | 31,350 | 31,350 | ||
Common Shareholders' Equity: | ||||
Common stock | 470 | 470 | ||
Paid-in capital | 1,140,264 | 790,264 | ||
Retained earnings | 1,704,117 | 1,586,020 | ||
TOTAL | 2,844,851 | 2,376,754 | 2,305,457 | 2,253,317 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 10,535,320 | 10,134,029 | ||
Entergy Louisiana [Member] | ||||
Cash and cash equivalents: | ||||
Cash | 195 | 5,836 | ||
Temporary cash investments | 28,833 | 30,071 | ||
Total cash and cash equivalents | 29,028 | 35,907 | 215,283 | 213,850 |
Accounts receivable: | ||||
Customer | 239,031 | 254,308 | ||
Allowance for doubtful accounts | (9,341) | (8,430) | ||
Associated companies | 154,965 | 143,524 | ||
Other | 61,832 | 60,893 | ||
Accrued unbilled revenues | 176,347 | 153,118 | ||
Total accounts receivable | 622,834 | 603,413 | ||
Fuel inventory - at average cost | 42,309 | 39,728 | ||
Materials and supplies - at average cost | 315,966 | 299,881 | ||
Deferred nuclear refueling outage costs | 40,229 | 65,711 | ||
Prepaid Taxes | 37,919 | 0 | ||
Prepayments and other | 54,143 | 34,035 | ||
TOTAL | 1,142,428 | 1,078,675 | ||
OTHER PROPERTY AND INVESTMENTS | ||||
Investment in affiliates - at equity | 1,390,587 | 1,390,587 | ||
Decommissioning trust funds | 1,334,879 | 1,312,073 | ||
Non-utility property - at cost (less accumulated depreciation) | 277,814 | 245,255 | ||
Storm Reserve Escrow Account | 286,743 | 284,759 | ||
Other | 14,620 | 18,999 | ||
TOTAL | 3,304,643 | 3,251,673 | ||
PROPERTY, PLANT, AND EQUIPMENT | ||||
Electric | 19,976,144 | 19,678,536 | ||
Natural gas | 203,802 | 191,899 | ||
Construction work in progress | 1,593,553 | 1,281,452 | ||
Nuclear fuel | 261,429 | 337,402 | ||
TOTAL PROPERTY, PLANT, AND EQUIPMENT | 22,034,928 | 21,489,289 | ||
Less - accumulated depreciation and amortization | 8,686,593 | 8,703,047 | ||
PROPERTY, PLANT, AND EQUIPMENT - NET | 13,348,335 | 12,786,242 | ||
Regulatory assets: | ||||
Other regulatory assets | 1,103,639 | 1,145,842 | ||
Deferred fuel costs | 168,122 | 168,122 | ||
Other | 26,786 | 18,310 | ||
TOTAL | 1,298,547 | 1,332,274 | ||
TOTAL ASSETS | 19,093,953 | 18,448,864 | ||
CURRENT LIABILITIES | ||||
Currently maturing long-term debt | 390,202 | 675,002 | ||
Short-term borrowings | 0 | 43,540 | ||
Associated companies accounts payable | 92,792 | 126,685 | ||
Other | 408,990 | 404,374 | ||
Customer deposits | 152,748 | 150,623 | ||
Taxes Payable, Current | 0 | 18,157 | ||
Interest accrued | 76,318 | 75,528 | ||
Deferred fuel costs | 2,706 | 71,447 | ||
Current portion of regulatory liability for income taxes - net related to unprotected ADIT | 199,167 | 0 | ||
Other | 75,787 | 79,037 | ||
TOTAL | 1,398,710 | 1,644,393 | ||
NON-CURRENT LIABILITIES | ||||
Accumulated deferred income taxes and taxes accrued | 2,180,827 | 2,050,371 | ||
Accumulated deferred investment tax credits | 119,435 | 121,870 | ||
Regulatory liability for income taxes - net | 494,214 | 725,368 | ||
Other regulatory liabilities | 784,235 | 761,059 | ||
Decommissioning and asset retirement cost liabilities | 1,256,711 | 1,140,461 | ||
Accumulated provisions | 308,251 | 302,448 | ||
Pension and other postretirement liabilities | 715,027 | 748,384 | ||
Long-term debt | 6,101,521 | 5,469,069 | ||
Other | 191,042 | 176,637 | ||
TOTAL | 12,151,263 | 11,495,667 | ||
Common Shareholders' Equity: | ||||
Accumulated other comprehensive loss | (57,451) | (46,400) | ||
Members' Equity | 5,601,431 | 5,355,204 | ||
TOTAL | 5,543,980 | 5,308,804 | 5,208,709 | 5,081,809 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 19,093,953 | 18,448,864 | ||
Entergy Mississippi [Member] | ||||
Cash and cash equivalents: | ||||
Cash | 11 | 1,607 | ||
Temporary cash investments | 7 | 4,489 | ||
Total cash and cash equivalents | 18 | 6,096 | 722 | 76,834 |
Accounts receivable: | ||||
Customer | 93,751 | 72,039 | ||
Allowance for doubtful accounts | (648) | (574) | ||
Associated companies | 46,456 | 45,081 | ||
Other | 9,747 | 9,738 | ||
Accrued unbilled revenues | 61,966 | 54,256 | ||
Total accounts receivable | 211,272 | 180,540 | ||
Deferred fuel costs | 25,912 | 32,444 | ||
Fuel inventory - at average cost | 46,583 | 45,606 | ||
Materials and supplies - at average cost | 44,675 | 42,571 | ||
Prepayments and other | 12,034 | 7,041 | ||
TOTAL | 340,494 | 314,298 | ||
OTHER PROPERTY AND INVESTMENTS | ||||
Non-utility property - at cost (less accumulated depreciation) | 4,584 | 4,592 | ||
Escrow accounts | 32,187 | 31,969 | ||
TOTAL | 36,771 | 36,561 | ||
PROPERTY, PLANT, AND EQUIPMENT | ||||
Electric | 4,557,995 | 4,660,297 | ||
Property under capital lease | 0 | 125 | ||
Construction work in progress | 175,039 | 149,367 | ||
TOTAL PROPERTY, PLANT, AND EQUIPMENT | 4,733,034 | 4,809,789 | ||
Less - accumulated depreciation and amortization | 1,624,479 | 1,681,306 | ||
PROPERTY, PLANT, AND EQUIPMENT - NET | 3,108,555 | 3,128,483 | ||
Regulatory assets: | ||||
Other regulatory assets | 398,575 | 397,909 | ||
Other | 3,398 | 2,124 | ||
TOTAL | 401,973 | 400,033 | ||
TOTAL ASSETS | 3,887,793 | 3,879,375 | ||
CURRENT LIABILITIES | ||||
Associated companies accounts payable | 112,877 | 55,689 | ||
Other | 111,101 | 77,326 | ||
Customer deposits | 83,348 | 83,654 | ||
Taxes Payable, Current | 37,107 | 82,843 | ||
Interest accrued | 19,109 | 22,901 | ||
Current portion of regulatory liability for income taxes - net related to unprotected ADIT | 35,415 | 0 | ||
Other | 9,723 | 12,785 | ||
TOTAL | 408,680 | 335,198 | ||
NON-CURRENT LIABILITIES | ||||
Accumulated deferred income taxes and taxes accrued | 520,387 | 488,806 | ||
Accumulated deferred investment tax credits | 8,787 | 8,867 | ||
Regulatory liability for income taxes - net | 246,670 | 411,011 | ||
Decommissioning and asset retirement cost liabilities | 9,840 | 9,219 | ||
Accumulated provisions | 52,006 | 44,764 | ||
Pension and other postretirement liabilities | 92,161 | 101,498 | ||
Long-term debt | 1,270,559 | 1,270,122 | ||
Other | 19,844 | 11,639 | ||
TOTAL | 2,220,254 | 2,345,926 | ||
Subsidiaries' preferred stock without sinking fund | 20,381 | 20,381 | ||
Common Shareholders' Equity: | ||||
Common stock | 199,326 | 199,326 | ||
Paid-in capital | 167 | 167 | ||
Retained earnings | 1,038,985 | 978,377 | ||
TOTAL | 1,238,478 | 1,177,870 | 1,139,775 | 1,094,791 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 3,887,793 | 3,879,375 | ||
Entergy New Orleans [Member] | ||||
Cash and cash equivalents: | ||||
Cash | 26 | 30 | ||
Temporary cash investments | 0 | 32,711 | ||
Total cash and cash equivalents | 26 | 32,741 | 61,529 | 103,068 |
Securitization recovery trust account | 1,466 | 1,455 | ||
Accounts receivable: | ||||
Customer | 58,918 | 51,006 | ||
Allowance for doubtful accounts | (3,068) | (3,057) | ||
Associated companies | 10,013 | 22,976 | ||
Other | 5,283 | 6,471 | ||
Accrued unbilled revenues | 25,095 | 20,638 | ||
Total accounts receivable | 96,241 | 98,034 | ||
Deferred fuel costs | 19,282 | 0 | ||
Fuel inventory - at average cost | 57 | 1,890 | ||
Materials and supplies - at average cost | 12,267 | 10,381 | ||
Prepaid Taxes | 37,081 | 26,479 | ||
Prepayments and other | 17,602 | 8,030 | ||
TOTAL | 184,022 | 179,010 | ||
OTHER PROPERTY AND INVESTMENTS | ||||
Non-utility property - at cost (less accumulated depreciation) | 1,016 | 1,016 | ||
Storm Reserve Escrow Account | 80,087 | 79,546 | ||
Other | 0 | 2,373 | ||
TOTAL | 81,103 | 82,935 | ||
PROPERTY, PLANT, AND EQUIPMENT | ||||
Electric | 1,323,666 | 1,302,235 | ||
Natural gas | 273,913 | 261,263 | ||
Construction work in progress | 88,104 | 46,993 | ||
TOTAL PROPERTY, PLANT, AND EQUIPMENT | 1,685,683 | 1,610,491 | ||
Less - accumulated depreciation and amortization | 647,582 | 631,178 | ||
PROPERTY, PLANT, AND EQUIPMENT - NET | 1,038,101 | 979,313 | ||
Regulatory assets: | ||||
Other regulatory assets | 239,476 | 251,433 | ||
Deferred fuel costs | 4,080 | 4,080 | ||
Other | 1,841 | 1,065 | ||
TOTAL | 245,397 | 256,578 | ||
TOTAL ASSETS | 1,548,623 | 1,497,836 | ||
CURRENT LIABILITIES | ||||
Current Payable Due Associated Company | 2,077 | 2,077 | ||
Associated companies accounts payable | 63,887 | 47,472 | ||
Other | 43,766 | 29,777 | ||
Customer deposits | 28,622 | 28,442 | ||
Interest accrued | 5,028 | 5,487 | ||
Deferred fuel costs | 0 | 7,774 | ||
Current portion of regulatory liability for income taxes - net related to unprotected ADIT | 32,464 | 0 | ||
Other | 8,749 | 7,351 | ||
TOTAL | 184,593 | 128,380 | ||
NON-CURRENT LIABILITIES | ||||
Accumulated deferred income taxes and taxes accrued | 305,210 | 283,302 | ||
Accumulated deferred investment tax credits | 2,269 | 2,323 | ||
Regulatory liability for income taxes - net | 83,499 | 119,259 | ||
Decommissioning and asset retirement cost liabilities | 3,182 | 3,076 | ||
Accumulated provisions | 85,521 | 85,083 | ||
Pension and other postretirement liabilities | 13,013 | 20,755 | ||
Long-term debt | 413,372 | 418,447 | ||
Long-Term Payable Due Associated Company | 16,346 | 16,346 | ||
Other | 11,419 | 5,317 | ||
TOTAL | 933,831 | 953,908 | ||
Common Shareholders' Equity: | ||||
Common stock | 430,199 | 415,548 | ||
TOTAL | 430,199 | 415,548 | 428,174 | 426,946 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,548,623 | 1,497,836 | ||
Entergy Texas [Member] | ||||
Cash and cash equivalents: | ||||
Cash | 26 | 32 | ||
Temporary cash investments | 40,373 | 115,481 | ||
Total cash and cash equivalents | 40,399 | 115,513 | 1,065 | 6,181 |
Securitization recovery trust account | 31,216 | 37,683 | ||
Accounts receivable: | ||||
Customer | 76,417 | 74,382 | ||
Allowance for doubtful accounts | (402) | (463) | ||
Associated companies | 70,105 | 90,629 | ||
Other | 9,488 | 9,831 | ||
Accrued unbilled revenues | 60,538 | 50,682 | ||
Total accounts receivable | 216,146 | 225,061 | ||
Fuel inventory - at average cost | 44,441 | 42,731 | ||
Materials and supplies - at average cost | 39,123 | 38,605 | ||
Prepayments and other | 13,288 | 19,710 | ||
TOTAL | 384,613 | 479,303 | ||
OTHER PROPERTY AND INVESTMENTS | ||||
Investment in affiliates - at equity | 470 | 457 | ||
Non-utility property - at cost (less accumulated depreciation) | 376 | 376 | ||
Other | 19,673 | 19,235 | ||
TOTAL | 20,519 | 20,068 | ||
PROPERTY, PLANT, AND EQUIPMENT | ||||
Electric | 4,653,078 | 4,569,295 | ||
Construction work in progress | 142,181 | 102,088 | ||
TOTAL PROPERTY, PLANT, AND EQUIPMENT | 4,795,259 | 4,671,383 | ||
Less - accumulated depreciation and amortization | 1,625,410 | 1,579,387 | ||
PROPERTY, PLANT, AND EQUIPMENT - NET | 3,169,849 | 3,091,996 | ||
Regulatory assets: | ||||
Other regulatory assets | 621,806 | 661,398 | ||
Other | 28,460 | 26,973 | ||
TOTAL | 650,266 | 688,371 | ||
TOTAL ASSETS | 4,225,247 | 4,279,738 | ||
CURRENT LIABILITIES | ||||
Currently maturing long-term debt | 500,000 | 0 | ||
Associated companies accounts payable | 54,017 | 59,347 | ||
Other | 102,657 | 126,095 | ||
Customer deposits | 41,610 | 40,925 | ||
Taxes Payable, Current | 66,098 | 45,659 | ||
Interest accrued | 24,878 | 25,556 | ||
Deferred fuel costs | 30,198 | 67,301 | ||
Current portion of regulatory liability for income taxes - net related to unprotected ADIT | 66,225 | 0 | ||
Other | 11,146 | 8,132 | ||
TOTAL | 896,829 | 373,015 | ||
NON-CURRENT LIABILITIES | ||||
Accumulated deferred income taxes and taxes accrued | 525,129 | 544,642 | ||
Accumulated deferred investment tax credits | 11,596 | 11,983 | ||
Regulatory liability for income taxes - net | 346,647 | 412,620 | ||
Other regulatory liabilities | 16,670 | 6,850 | ||
Decommissioning and asset retirement cost liabilities | 7,026 | 6,835 | ||
Accumulated provisions | 10,549 | 10,115 | ||
Pension and other postretirement liabilities | 4,535 | 17,853 | ||
Long-term debt | 1,048,180 | 1,587,150 | ||
Other | 49,780 | 48,508 | ||
TOTAL | 2,020,112 | 2,646,556 | ||
Common Shareholders' Equity: | ||||
Common stock | 49,452 | 49,452 | ||
Paid-in capital | 596,994 | 596,994 | ||
Retained earnings | 661,860 | 613,721 | ||
TOTAL | 1,308,306 | 1,260,167 | 1,100,949 | 1,068,994 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,225,247 | 4,279,738 | ||
System Energy [Member] | ||||
Cash and cash equivalents: | ||||
Cash | 48 | 78 | ||
Temporary cash investments | 258,729 | 287,109 | ||
Total cash and cash equivalents | 258,777 | 287,187 | 337,600 | 245,863 |
Accounts receivable: | ||||
Associated companies | 107,799 | 170,149 | ||
Other | 7,252 | 6,526 | ||
Total accounts receivable | 115,051 | 176,675 | ||
Materials and supplies - at average cost | 89,033 | 88,424 | ||
Deferred nuclear refueling outage costs | 67,807 | 7,908 | ||
Prepayments and other | 6,741 | 2,489 | ||
TOTAL | 537,409 | 562,683 | ||
OTHER PROPERTY AND INVESTMENTS | ||||
Decommissioning trust funds | 914,377 | 905,686 | ||
TOTAL | 914,377 | 905,686 | ||
PROPERTY, PLANT, AND EQUIPMENT | ||||
Electric | 4,353,638 | 4,327,849 | ||
Property under capital lease | 588,281 | 588,281 | ||
Construction work in progress | 147,763 | 69,937 | ||
Nuclear fuel | 279,182 | 207,513 | ||
TOTAL PROPERTY, PLANT, AND EQUIPMENT | 5,368,864 | 5,193,580 | ||
Less - accumulated depreciation and amortization | 3,227,888 | 3,175,018 | ||
PROPERTY, PLANT, AND EQUIPMENT - NET | 2,140,976 | 2,018,562 | ||
Regulatory assets: | ||||
Other regulatory assets | 461,266 | 444,327 | ||
Other | 25,411 | 7,629 | ||
TOTAL | 486,677 | 451,956 | ||
TOTAL ASSETS | 4,079,439 | 3,938,887 | ||
CURRENT LIABILITIES | ||||
Currently maturing long-term debt | 85,005 | 85,004 | ||
Short-term borrowings | 38,873 | 17,830 | ||
Associated companies accounts payable | 9,996 | 16,878 | ||
Other | 121,846 | 62,868 | ||
Taxes Payable, Current | 39,484 | 46,584 | ||
Interest accrued | 14,174 | 13,389 | ||
Current portion of regulatory liability for income taxes - net related to unprotected ADIT | 71,140 | 0 | ||
Other | 2,436 | 2,434 | ||
TOTAL | 382,954 | 244,987 | ||
NON-CURRENT LIABILITIES | ||||
Accumulated deferred income taxes and taxes accrued | 785,699 | 776,420 | ||
Accumulated deferred investment tax credits | 38,767 | 39,406 | ||
Regulatory liability for income taxes - net | 164,202 | 246,122 | ||
Other regulatory liabilities | 453,877 | 455,991 | ||
Decommissioning and asset retirement cost liabilities | 878,661 | 861,664 | ||
Pension and other postretirement liabilities | 115,323 | 121,874 | ||
Long-term debt | 516,657 | 466,484 | ||
Other | 50,035 | 15,130 | ||
TOTAL | 3,003,221 | 2,983,091 | ||
Common Shareholders' Equity: | ||||
Common stock | 601,850 | 658,350 | ||
Retained earnings | 91,414 | 52,459 | ||
TOTAL | 693,264 | 710,809 | $ 778,520 | $ 738,823 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 4,079,439 | $ 3,938,887 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Securitization property | $ 427,427 | $ 485,031 |
Securitization bonds | $ 483,242 | $ 544,921 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 254,752,788 | 254,752,788 |
Treasury stock, shares | 73,911,771 | 74,235,135 |
Entergy Arkansas [Member] | ||
Securitization property | $ 21,480 | $ 28,583 |
Securitization bonds | $ 27,881 | $ 34,662 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 325,000,000 | 325,000,000 |
Common stock, shares issued | 46,980,196 | 46,980,196 |
Common stock, shares outstanding | 46,980,196 | 46,980,196 |
Entergy Louisiana [Member] | ||
Securitization property | $ 61,519 | $ 71,367 |
Securitization bonds | $ 67,568 | $ 77,736 |
Entergy Mississippi [Member] | ||
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 8,666,357 | 8,666,357 |
Common stock, shares outstanding | 8,666,357 | 8,666,357 |
Entergy New Orleans [Member] | ||
Securitization property | $ 66,475 | $ 72,095 |
Securitization bonds | 69,199 | 74,419 |
Entergy Texas [Member] | ||
Securitization property | 277,999 | 313,123 |
Securitization bonds | $ 318,594 | $ 358,104 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 46,525,000 | 46,525,000 |
Common stock, shares outstanding | 46,525,000 | 46,525,000 |
System Energy [Member] | ||
Common stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, shares issued | 789,350 | 789,350 |
Common stock, shares outstanding | 789,350 | 789,350 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Equity - USD ($) $ in Thousands | Total | Subsidiaries Preferred Stock [Member] | Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Common Stock [Member] | Treasury Stock [Member] | Entergy Arkansas [Member] | Entergy Arkansas [Member]Paid In Capital [Member] | Entergy Arkansas [Member]Retained Earnings [Member] | Entergy Arkansas [Member]Common Stock [Member] | Entergy Louisiana [Member] | Entergy Louisiana [Member]Member's Equity [Member] | Entergy Louisiana [Member]Accumulated Other Comprehensive Income [Member] | Entergy Mississippi [Member] | Entergy Mississippi [Member]Capital Stock Expense and Other [Member] | Entergy Mississippi [Member]Retained Earnings [Member] | Entergy Mississippi [Member]Common Stock [Member] | Entergy New Orleans [Member] | Entergy New Orleans [Member]Common Stock [Member] | Entergy Texas [Member] | Entergy Texas [Member]Paid In Capital [Member] | Entergy Texas [Member]Retained Earnings [Member] | Entergy Texas [Member]Common Stock [Member] | System Energy [Member] | System Energy [Member]Retained Earnings [Member] | System Energy [Member]Common Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 8,081,809 | $ 0 | $ 5,417,245 | $ 8,195,571 | $ (34,971) | $ 2,548 | $ (5,498,584) | $ 2,253,317 | $ 790,243 | $ 1,462,604 | $ 470 | $ 5,081,809 | $ 5,130,251 | $ (48,442) | $ 1,094,791 | $ 167 | $ 895,298 | $ 199,326 | $ 426,946 | $ 1,068,994 | $ 481,994 | $ 537,548 | $ 49,452 | $ 738,823 | $ 59,473 | $ 679,350 | ||||
Consolidated net income | 499,420 | [1] | 6,892 | [1] | 0 | 492,528 | [1] | 0 | 0 | 0 | 52,854 | 0 | 52,854 | 0 | 218,857 | 218,857 | 0 | 45,461 | 0 | 45,461 | 0 | 25,860 | 31,955 | 0 | 31,955 | 0 | 39,697 | 39,697 | 0 | |
Other comprehensive income (loss) | 87,744 | 0 | 0 | 0 | 87,744 | 0 | 0 | (680) | 0 | (680) | ||||||||||||||||||||
Common stock issuances related to stock plans | 20,984 | 0 | (7,383) | 0 | 0 | 0 | 28,367 | |||||||||||||||||||||||
Common stock | (312,209) | 0 | 0 | (312,209) | 0 | 0 | 0 | (91,250) | (91,250) | 0 | (24,150) | 0 | ||||||||||||||||||
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Redeemable | 6,892 | [1] | 6,892 | [1] | 0 | 0 | 0 | 0 | 0 | 714 | 0 | 714 | 0 | 477 | 0 | 477 | 0 | 482 | $ (482) | |||||||||||
Other | (27) | (27) | 0 | |||||||||||||||||||||||||||
Proceeds from Contributions from Parent | 0 | |||||||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 8,370,856 | 0 | 5,409,862 | 8,375,890 | 52,773 | 2,548 | (5,470,217) | 2,305,457 | 790,243 | 1,514,744 | 470 | 5,208,709 | 5,257,831 | (49,122) | 1,139,775 | 167 | 940,282 | 199,326 | 428,174 | 1,100,949 | 481,994 | 569,503 | 49,452 | 778,520 | 99,170 | 679,350 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 7,992,515 | 0 | 5,433,433 | 7,977,702 | (23,531) | 2,548 | (5,397,637) | 2,376,754 | 790,264 | 1,586,020 | 470 | 5,308,804 | 5,355,204 | (46,400) | 1,177,870 | 167 | 978,377 | 199,326 | 415,548 | 1,260,167 | 596,994 | 613,721 | 49,452 | 710,809 | 52,459 | 658,350 | ||||
Consolidated net income | 385,059 | [1] | 6,878 | [1] | 0 | 378,181 | [1] | 0 | 0 | 0 | 118,811 | 0 | 118,811 | 0 | 295,952 | 295,952 | 0 | 61,085 | 0 | 61,085 | 0 | 29,151 | 48,139 | 0 | 48,139 | 0 | 45,695 | 45,695 | 0 | |
Other comprehensive income (loss) | 27,001 | 0 | 0 | 0 | 27,001 | 0 | 0 | (1,002) | 0 | (1,002) | ||||||||||||||||||||
Common stock issuances related to stock plans | 19,483 | 0 | (4,029) | 0 | 0 | 0 | 23,512 | |||||||||||||||||||||||
Common stock | (321,821) | 0 | 0 | (321,821) | 0 | 0 | 0 | (56,000) | (56,000) | 0 | (14,500) | (63,240) | (6,740) | (56,500) | ||||||||||||||||
Noncontrolling Interest in Net Income (Loss) Preferred Unit Holders, Redeemable | 6,878 | [1] | 6,878 | [1] | 0 | 0 | 0 | 0 | 0 | 714 | 0 | 714 | 0 | 477 | 0 | 477 | 0 | 0 | ||||||||||||
Other | 13 | 13 | 0 | |||||||||||||||||||||||||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (16,538) | [1] | 0 | [1] | 0 | (32,043) | 15,505 | 0 | 0 | (3,787) | 6,262 | (10,049) | ||||||||||||||||||
Proceeds from Contributions from Parent | 350,000 | 350,000 | 0 | 0 | ||||||||||||||||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 8,022,461 | $ 0 | $ 5,429,404 | $ 8,578,276 | $ (613,642) | $ 2,548 | $ (5,374,125) | $ 2,844,851 | $ 1,140,264 | $ 1,704,117 | $ 470 | $ 5,543,980 | $ 5,601,431 | $ (57,451) | $ 1,238,478 | $ 167 | $ 1,038,985 | $ 199,326 | $ 430,199 | $ 1,308,306 | $ 596,994 | $ 661,860 | $ 49,452 | $ 693,264 | $ 91,414 | $ 601,850 | ||||
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |
Consolidated Statements Of Cha7
Consolidated Statements Of Changes In Equity (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Preferred dividends on subsidiaries' preferred stock | $ 6.9 | $ 6.9 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Net income | $ 248,860 | $ 413,368 | $ 385,059 | [1] | $ 499,420 | [1] |
Other comprehensive income (loss) | ||||||
Cash flow hedges net unrealized gain (loss) | (65,068) | 19,949 | 30,359 | 19,421 | ||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 15,565 | 10,916 | 32,139 | 19,548 | ||
Net unrealized investment gains | (2,641) | 11,696 | (35,497) | 49,523 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 0 | (748) | 0 | (748) | ||
Other comprehensive income (loss) | (52,144) | 41,813 | 27,001 | 87,744 | ||
Total comprehensive income | 196,716 | 455,181 | 412,060 | 587,164 | ||
Net Income (Loss) Attributable to Noncontrolling Interest, Preferred Unit Holders | 3,439 | 3,446 | 6,878 | 6,892 | ||
Comprehensive Income Attributable to Entergy Corporation | 193,277 | 451,735 | 405,182 | 580,272 | ||
Entergy Louisiana [Member] | ||||||
Net income | 184,358 | 124,479 | 295,952 | 218,857 | ||
Other comprehensive income (loss) | ||||||
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | (501) | (310) | (1,002) | (680) | ||
Other comprehensive income (loss) | (501) | (310) | (1,002) | (680) | ||
Total comprehensive income | $ 183,857 | $ 124,169 | $ 294,950 | $ 218,177 | ||
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |
Consolidated Statements Of Com9
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | $ (17,312) | $ 10,684 | $ 8,037 | $ 10,325 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | 4,225 | 5,839 | 8,793 | 12,216 |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | (2,842) | 2,870 | 2,533 | 42,164 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | (403) | 0 | (403) |
Entergy Louisiana [Member] | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | $ (177) | $ (292) | $ (353) | $ (524) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory commissions, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein. Vidalia Purchased Power Agreement See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement. ANO Damage, Outage, and NRC Reviews See Note 8 to the financial statements in the Form 10-K for a discussion of the ANO stator incident, subsequent NRC reviews, and the deferral of replacement power costs. In June 2018 the NRC moved ANO 1 and ANO 2 into the “licensee response column,” or Column 1, of the NRC’s Reactor Oversight Process Action Matrix. This action followed NRC inspections to review ANO 1’s and ANO 2’s performance in addressing issues that had previously resulted in classification in Column 4. Pilgrim NRC Oversight and Planned Shutdown See Note 8 to the financial statements in the Form 10-K for a discussion of the NRC’s enhanced inspections of Pilgrim and Entergy’s planned shutdown of Pilgrim on May 31, 2019. Spent Nuclear Fuel Litigation See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. Nuclear Insurance See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants. Non-Nuclear Property Insurance See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program. Employment and Labor-related Proceedings See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings. Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas) See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation. |
Entergy Arkansas [Member] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory commissions, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein. Vidalia Purchased Power Agreement See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement. ANO Damage, Outage, and NRC Reviews See Note 8 to the financial statements in the Form 10-K for a discussion of the ANO stator incident, subsequent NRC reviews, and the deferral of replacement power costs. In June 2018 the NRC moved ANO 1 and ANO 2 into the “licensee response column,” or Column 1, of the NRC’s Reactor Oversight Process Action Matrix. This action followed NRC inspections to review ANO 1’s and ANO 2’s performance in addressing issues that had previously resulted in classification in Column 4. Pilgrim NRC Oversight and Planned Shutdown See Note 8 to the financial statements in the Form 10-K for a discussion of the NRC’s enhanced inspections of Pilgrim and Entergy’s planned shutdown of Pilgrim on May 31, 2019. Spent Nuclear Fuel Litigation See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. Nuclear Insurance See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants. Non-Nuclear Property Insurance See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program. Employment and Labor-related Proceedings See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings. Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas) See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation. |
Entergy Louisiana [Member] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory commissions, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein. Vidalia Purchased Power Agreement See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement. ANO Damage, Outage, and NRC Reviews See Note 8 to the financial statements in the Form 10-K for a discussion of the ANO stator incident, subsequent NRC reviews, and the deferral of replacement power costs. In June 2018 the NRC moved ANO 1 and ANO 2 into the “licensee response column,” or Column 1, of the NRC’s Reactor Oversight Process Action Matrix. This action followed NRC inspections to review ANO 1’s and ANO 2’s performance in addressing issues that had previously resulted in classification in Column 4. Pilgrim NRC Oversight and Planned Shutdown See Note 8 to the financial statements in the Form 10-K for a discussion of the NRC’s enhanced inspections of Pilgrim and Entergy’s planned shutdown of Pilgrim on May 31, 2019. Spent Nuclear Fuel Litigation See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. Nuclear Insurance See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants. Non-Nuclear Property Insurance See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program. Employment and Labor-related Proceedings See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings. Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas) See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation. |
Entergy Mississippi [Member] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory commissions, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein. Vidalia Purchased Power Agreement See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement. ANO Damage, Outage, and NRC Reviews See Note 8 to the financial statements in the Form 10-K for a discussion of the ANO stator incident, subsequent NRC reviews, and the deferral of replacement power costs. In June 2018 the NRC moved ANO 1 and ANO 2 into the “licensee response column,” or Column 1, of the NRC’s Reactor Oversight Process Action Matrix. This action followed NRC inspections to review ANO 1’s and ANO 2’s performance in addressing issues that had previously resulted in classification in Column 4. Pilgrim NRC Oversight and Planned Shutdown See Note 8 to the financial statements in the Form 10-K for a discussion of the NRC’s enhanced inspections of Pilgrim and Entergy’s planned shutdown of Pilgrim on May 31, 2019. Spent Nuclear Fuel Litigation See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. Nuclear Insurance See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants. Non-Nuclear Property Insurance See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program. Employment and Labor-related Proceedings See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings. Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas) See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation. |
Entergy New Orleans [Member] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory commissions, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein. Vidalia Purchased Power Agreement See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement. ANO Damage, Outage, and NRC Reviews See Note 8 to the financial statements in the Form 10-K for a discussion of the ANO stator incident, subsequent NRC reviews, and the deferral of replacement power costs. In June 2018 the NRC moved ANO 1 and ANO 2 into the “licensee response column,” or Column 1, of the NRC’s Reactor Oversight Process Action Matrix. This action followed NRC inspections to review ANO 1’s and ANO 2’s performance in addressing issues that had previously resulted in classification in Column 4. Pilgrim NRC Oversight and Planned Shutdown See Note 8 to the financial statements in the Form 10-K for a discussion of the NRC’s enhanced inspections of Pilgrim and Entergy’s planned shutdown of Pilgrim on May 31, 2019. Spent Nuclear Fuel Litigation See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. Nuclear Insurance See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants. Non-Nuclear Property Insurance See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program. Employment and Labor-related Proceedings See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings. Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas) See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation. |
Entergy Texas [Member] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory commissions, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein. Vidalia Purchased Power Agreement See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement. ANO Damage, Outage, and NRC Reviews See Note 8 to the financial statements in the Form 10-K for a discussion of the ANO stator incident, subsequent NRC reviews, and the deferral of replacement power costs. In June 2018 the NRC moved ANO 1 and ANO 2 into the “licensee response column,” or Column 1, of the NRC’s Reactor Oversight Process Action Matrix. This action followed NRC inspections to review ANO 1’s and ANO 2’s performance in addressing issues that had previously resulted in classification in Column 4. Pilgrim NRC Oversight and Planned Shutdown See Note 8 to the financial statements in the Form 10-K for a discussion of the NRC’s enhanced inspections of Pilgrim and Entergy’s planned shutdown of Pilgrim on May 31, 2019. Spent Nuclear Fuel Litigation See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. Nuclear Insurance See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants. Non-Nuclear Property Insurance See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program. Employment and Labor-related Proceedings See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings. Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas) See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation. |
System Energy [Member] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory commissions, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein. Vidalia Purchased Power Agreement See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement. ANO Damage, Outage, and NRC Reviews See Note 8 to the financial statements in the Form 10-K for a discussion of the ANO stator incident, subsequent NRC reviews, and the deferral of replacement power costs. In June 2018 the NRC moved ANO 1 and ANO 2 into the “licensee response column,” or Column 1, of the NRC’s Reactor Oversight Process Action Matrix. This action followed NRC inspections to review ANO 1’s and ANO 2’s performance in addressing issues that had previously resulted in classification in Column 4. Pilgrim NRC Oversight and Planned Shutdown See Note 8 to the financial statements in the Form 10-K for a discussion of the NRC’s enhanced inspections of Pilgrim and Entergy’s planned shutdown of Pilgrim on May 31, 2019. Spent Nuclear Fuel Litigation See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation. Nuclear Insurance See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants. Non-Nuclear Property Insurance See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program. Employment and Labor-related Proceedings See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings. Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas) See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation. |
Rate And Regulatory Matters
Rate And Regulatory Matters | 6 Months Ended |
Jun. 30, 2018 | |
Rate and Regulatory Matters | RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Regulatory Assets and Regulatory Liabilities See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion. Regulatory activity regarding the Tax Cuts and Jobs Act See the “ Other Tax Matters - Tax Cuts and Jobs Act ” section in Note 3 to the financial statements in the Form 10-K for discussion of the effects of the enactment in December 2017 of the Tax Cuts and Jobs Act (the Tax Act), including its effects on Entergy’s and the Registrant Subsidiaries’ regulatory asset/liability for income taxes. After assessing the activity described in more detail below regarding the status of the proposals the Registrant Subsidiaries made to their regulators for the return of unprotected excess accumulated deferred income taxes to customers, in 2018, Entergy and each of the Registrant Subsidiaries are reclassifying from the regulatory liability for income taxes to current liabilities the portion of their unprotected excess accumulated deferred income taxes that they expect to return to customers over the next twelve months. Entergy Arkansas See the Form 10-K for a discussion of the activity of the APSC and Entergy Arkansas after enactment of the Tax Act in December 2017. The APSC granted Entergy Arkansas’s request for clarification regarding the APSC’s order issued after enactment of the Tax Act. The APSC stated that its order was not a final determination and that the APSC had made no decision at that time on the appropriate final accounting or ratemaking treatment of the amounts in question. A hearing was held in May 2018 regarding the APSC’s inquiries into the effects of the Tax Act, including Entergy Arkansas’s proposal to utilize its existing formula rate plan rider for its customers to realize the remaining benefits of the Tax Act. In July 2018 the APSC issued an order agreeing with Entergy Arkansas’s proposal to have the effects on current income tax expense flow through Entergy Arkansas’s formula rate plan rider and its treatment of protected and unprotected excess accumulated deferred income taxes. The APSC also directed Entergy Arkansas to submit in the tax adjustment rider proceeding, discussed below, the adjustments to all other riders affected by the Tax Act and to include an amendment for a true up mechanism where a rider affected by the Tax Act does not already contain a true up mechanism. Consistent with its previously stated intent to return unprotected excess accumulated deferred income taxes to customers as expeditiously as possible, Entergy Arkansas initiated a tariff proceeding in February 2018 proposing to establish a tax adjustment rider to provide retail customers with certain tax benefits associated with the Tax Act. For the residential customer class, the unprotected excess accumulated deferred income taxes will be returned to customers over a 21-month period from April 2018 through December 2019. For all other customer classes, the unprotected excess accumulated deferred income taxes will be returned to customers over a 9-month period from April 2018 through December 2018. A true-up provision also was included, with any over- or under-returned unprotected excess accumulated deferred income taxes to be credited or billed to customers during the billing month of January 2020, with any residual amounts of over- or under-returned unprotected excess accumulated deferred income taxes to be flowed through Entergy Arkansas’s energy cost recovery rider. In March 2018 the APSC approved the tax adjustment rider effective with the first billing cycle of April 2018. Entergy Louisiana See the Form 10-K for a discussion of the activity of the LPSC and Entergy Louisiana after enactment of the Tax Act in December 2017. In July 2018 the LPSC issued a proposed rule requiring utilities to adjust rates prospectively to reflect the lower tax rate (either through a formula rate plan or rate case), refund excess tax expense collected since January 1, 2018 until the lower tax rate is reflected in rates (with the refund occurring over one year), and refund excess accumulated deferred income taxes over two years. Entergy Louisiana believes that its formula rate plan settlement, approved in April 2018 and discussed below, addresses fully its obligations regarding the Tax Act and will seek such confirmation in its comments to the proposed rule. In the formula rate plan settlement approved by the LPSC in April 2018 the parties agreed that Entergy Louisiana will return to customers one-half of its eligible unprotected excess deferred income taxes from May 2018 through December 2018 and return to customers the other half from January 2019 through August 2022. In addition, the parties agreed that in order to flow back to customers certain other tax benefits created by the Tax Act, Entergy Louisiana would establish a regulatory liability effective January 1, 2018 in the amount of $9.1 million per month until new base rates under the formula rate plan are established, and this regulatory liability will be returned to customers over the next formula rate plan rate-effective period. Entergy Louisiana recorded a $55 million regulatory liability thus far in 2018 pursuant to this provision of the settlement. The LPSC staff and intervenors in the settlement reserved the right to obtain data from Entergy Louisiana to confirm the determination of excess accumulated deferred income taxes resulting from the Tax Act and analysis thereof as part of the formula rate plan review proceeding for the 2017 test year filing, which, as discussed below, Entergy Louisiana filed in June 2018. Entergy Mississippi As discussed in the Form 10-K, after enactment of the Tax Act the MPSC ordered utilities, including Entergy Mississippi, that operate under a formula rate plan to file a description by February 26, 2018, of how the Tax Act will be reflected in the formula rate plan under which the utility operates. Entergy Mississippi's plan, as filed with the MPSC on February 26, 2018, included a request to reflect the changes related to the Tax Act in the 2018 formula rate plan filing. Entergy Mississippi filed its 2018 formula rate plan on March 15, 2018 and included a proposal to return all of its unprotected excess accumulated deferred income taxes to customers through rates or in exchange for other assets, or a combination of both, by the end of 2018. Also, in March 2018 the MPSC issued a subsequent order in its generic tax reform docket ordering utilities, including Entergy Mississippi, to explain the implementation of the utilities tax adjustment clause, or, in the alternative, why the tax adjustment clause is inapplicable; submit an analysis of the ratemaking effects of the Tax Act on current and future revenue requirements for rate schedules that include a gross-up for federal taxes; and make appropriate accounting entries to recognize the removal of excess deferred taxes from the balance of the utility’s accumulated deferred income tax account, or, in the alternative, explain why recording such entries is not appropriate. In April 2018, Entergy Mississippi filed its response to the MPSC stating that the tax adjustment clauses in its base rates are properly implemented through its formula rate plan. Entergy Mississippi also provided analysis of the ratemaking effects of the Tax Act. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into and filed a joint stipulation in Entergy Mississippi’s formula rate plan filing that addressed Entergy Mississippi’s 2018 formula rate plan evaluation report and the ratemaking effects of the Tax Act. In June 2018 the MPSC approved the stipulation, which provides for incorporating the reduction of the statutory federal income tax rate through the formula rate plan and the flow-back of protected excess accumulated deferred income taxes over approximately 40 years through the formula rate plan. The stipulation also provides for the offset of unprotected excess accumulated deferred income taxes of $127.2 million against net utility plant and $2.2 million against other regulatory assets, and the return to customers of the remaining balance of unprotected excess accumulated deferred income taxes as recovery of a portion of fuel oil inventory and customer bill credits over a 3-month period from July 2018 through September 2018, with any true-up to be reflected in the November 2018 power management rider submittal. Entergy Mississippi recorded the reduction against net utility plant and other regulatory assets in June 2018. Entergy New Orleans As discussed in the Form 10-K, after enactment of the Tax Act the City Council passed a resolution ordering Entergy New Orleans to, effective January 1, 2018, record deferred regulatory liabilities to account for the Tax Act’s effect on Entergy New Orleans’s revenue requirement and to make a filing by mid-March 2018 regarding the Tax Act’s effects on Entergy New Orleans’s operating income and rate base and potential mechanisms for customers to receive benefits of the Tax Act. The City Council’s resolution also directed Entergy New Orleans to request that Entergy Services file with the FERC for revisions of the Unit Power Sales Agreement and MSS-4 replacement tariffs to address the return of excess accumulated deferred income taxes. Entergy has submitted filings of this type to the FERC. In March 2018, Entergy New Orleans filed its response to that resolution stating that the Tax Act reduced income tax expense from what is presently reflected in rates by approximately $8.2 million annually for electric operations and by approximately $1.3 million annually for gas operations. In the filing, Entergy New Orleans proposed to return to customers from June 2018 through August 2019 the benefits of the reduction in income tax expense and its unprotected excess accumulated deferred income taxes through a combination of bill credits and investments in energy efficiency programs, grid modernization, and Smart City projects. Entergy New Orleans submitted supplemental information in April 2018 and May 2018. Shortly thereafter, Entergy New Orleans and the City Council’s advisors reached an agreement in principle that provides for benefits that will be realized by Entergy New Orleans customers through bill credits starting in July 2018 and offsets to future investments in energy efficiency programs, grid modernization, and Smart City projects, as well as additional benefits related to the filings made at FERC. The agreement in principle was approved by the City Council in June 2018. Entergy Texas As discussed below, in May 2018, Entergy Texas filed its 2018 base rate case with the PUCT. Entergy Texas’s proposed rates and revenues reflect the inclusion of the federal income tax reductions due to the Tax Act. In the rate case Entergy Texas proposed to return its unprotected excess accumulated deferred income taxes to customers over a two-year period following PUCT approval. System Energy In a filing made with the FERC in March 2018, Entergy proposed revisions to the Unit Power Sales Agreement, among other agreements, to reflect the effects of the Tax Act. In the filing System Energy proposed to return all of its unprotected excess accumulated deferred income taxes to its customers by the end of 2018. In May 2018 the FERC accepted System Energy’s proposed tax revisions with an effective date of June 1, 2018, subject to refund and the outcome of settlement and hearing procedures. Settlement discussions are ongoing. Fuel and purchased power cost recovery Entergy Arkansas Energy Cost Recovery Rider In March 2018, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.01547 per kWh to $0.01882 per kWh. The Arkansas Attorney General filed a response to Entergy Arkansas’s annual redetermination filing requesting that the APSC suspend the proposed tariff to investigate the amount of the redetermination or, alternatively, to allow recovery subject to refund. Among the reasons the Arkansas Attorney General cited for suspension were questions pertaining to how Entergy Arkansas forecasted sales and potential implications of the Tax Act. Entergy Arkansas replied to the Arkansas Attorney General’s filing and stated that, to the extent there are questions pertaining to its load forecasting or the operation of the energy cost recovery rider, those issues exceed the scope of the instant rate redetermination. Entergy Arkansas also stated that potential effects of the Tax Act are appropriately considered in the APSC’s separate proceeding looking at potential implications of the new tax law. The APSC general staff filed a reply to the Arkansas Attorney General’s filing and agreed that Entergy Arkansas’s filing complied with the terms of the energy cost recovery rider. In April 2018 the APSC issued an order declining to suspend Entergy Arkansas’s energy cost recovery rider rate and declining to require further investigation at this time of the issues suggested by the Attorney General in the proceeding. The redetermined rate became effective with the first billing cycle of April 2018. Discovery continues to be conducted by the parties with respect to the redetermined rate. Entergy Mississippi Mississippi Attorney General Complaint As discussed in the Form 10-K the Mississippi Attorney General filed a complaint in state court in December 2008 against Entergy Corporation, Entergy Mississippi, Entergy Services, and Entergy Power alleging, among other things, violations of Mississippi statutes, fraud, and breach of good faith and fair dealing, and requesting an accounting and restitution. The defendants have denied the allegations. In June 2017 the District Court issued a case management order setting a trial date in November 2018. Discovery ended in May 2018. In June 2018, Entergy filed motions for summary judgment, which are currently pending before the District Court. In July 2018 the Mississippi Attorney General filed briefs opposing the summary judgment. Entergy Texas As discussed in the Form 10-K, in July 2015 certain parties filed briefs in an open PUCT proceeding asserting that Entergy Texas should refund to retail customers an additional $10.9 million in bandwidth remedy payments Entergy Texas received related to calendar year 2006 production costs. In October 2015 an ALJ issued a proposal for decision recommending that the additional bandwidth remedy payments be refunded to retail customers. In January 2016 the PUCT issued its order affirming the ALJ’s recommendation, and Entergy Texas filed a motion for rehearing of the PUCT’s decision, which the PUCT denied. In March 2016, Entergy Texas filed a complaint in Federal District Court for the Western District of Texas and a petition in the Travis County (State) District Court appealing the PUCT’s decision. The pending appeals did not stay the PUCT’s decision, and Entergy Texas refunded to customers the $10.9 million over a four-month period beginning with the first billing cycle of July 2016. The federal appeal of the PUCT’s January 2016 decision was heard in December 2016, and the Federal District Court granted Entergy Texas’s requested relief. In January 2017 the PUCT and an intervenor filed petitions for appeal of the Federal District Court ruling to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held before the Fifth Circuit in February 2018. In April 2018 the Fifth Circuit reversed the decision of the Federal District Court, reinstating the original PUCT decision. The State District Court appeal of the PUCT’s January 2016 decision remains pending. In December 2017, Entergy Texas filed an application for a fuel refund of approximately $30.5 million for the months of May 2017 through October 2017. Also in December 2017, the PUCT’s ALJ approved the refund on an interim basis. For most customers, the refunds flowed through bills beginning January 2018 and continued through March 2018. The fuel refund was approved by the PUCT in March 2018. Retail Rate Proceedings See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that information. Filings with the APSC (Entergy Arkansas) 2018 Formula Rate Plan Filing In July 2018, Entergy Arkansas filed with the APSC its 2018 formula rate plan filing to set its formula rate for the 2019 calendar year. The filing shows Entergy Arkansas’s projected earned return on common equity for the twelve months ended December 31, 2019 test period to be below the formula rate plan bandwidth. Additionally, the filing includes the first netting adjustment under the current formula rate plan for the historical test year 2017, which is a comparison of projected costs and sales approved in the 2016 formula rate plan filing to actual 2017 costs and sales data. The filing includes a projected $73.4 million revenue deficiency for 2019 and a $95.6 million revenue deficiency for the 2017 historical test year, for a total revenue requirement of $169 million for this filing. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Because Entergy Arkansas’s revenue requirement in this filing exceeds the constraint, the resulting increase is limited to four percent of total revenue, which is $65.4 million . Entergy Arkansas recommended that the parties to the proceeding support a hearing date in November 2018 and requested that the APSC issue an order approving the proposed formula rate plan adjustment in December 2018, with the proposed formula rate plan adjustment effective with the first billing cycle of January 2019. Internal Restructuring As discussed in the Form 10-K, in November 2017, Entergy Arkansas filed an application with the APSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Arkansas to a new entity, which would ultimately be owned by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the APSC, the FERC, and the NRC. Entergy Arkansas also filed a notice with the Missouri Public Service Commission in December 2017 out of an abundance of caution, although Entergy Arkansas does not serve any retail customers in Missouri. In April 2018 the Missouri Public Service Commission approved Entergy Arkansas’s filing. In July 2018, Entergy Arkansas filed a settlement, reached by all parties in the APSC proceeding, resolving all issues and seeking an APSC decision no later than September 1, 2018. If the appropriate approvals are obtained, Entergy Arkansas expects the restructuring will be consummated on or before December 1, 2018. Filings with the LPSC (Entergy Louisiana) Retail Rates - Electric 2016 Formula Rate Plan Filing As discussed in the Form 10-K, in May 2017, Entergy Louisiana filed its formula rate plan evaluation report for its 2016 calendar year operations. Rates reflecting the adjustments included in the formula rate plan evaluation report were implemented with the first billing cycle of September 2017, subject to refund. In September 2017 the LPSC issued its report indicating that no changes to Entergy Louisiana’s original formula rate plan evaluation report were required but reserved for several issues, including Entergy Louisiana’s September 2017 update to its formula rate plan evaluation report. In July 2018, Entergy Louisiana and the LPSC staff filed an unopposed joint report setting forth a correction to the annualization calculation, the effect of which was a net $3.5 million revenue requirement reduction, and indicating that there are no outstanding issues with the 2016 formula rate plan report, the supplemental report, or the interim updates. The LPSC voted to accept and approve the unopposed joint report in August 2018. Formula Rate Plan Extension Request In August 2017, Entergy Louisiana filed a request with the LPSC seeking to extend its formula rate plan for three years (2017-2019) with limited modifications of its terms. Those modifications include: a one-time resetting of base rates to the midpoint of the band at Entergy Louisiana’s authorized return on equity of 9.95% for the 2017 test year; narrowing of the formula rate plan bandwidth from a total of 160 basis points to 80 basis points; and a forward-looking mechanism that would allow Entergy Louisiana to recover certain transmission-related costs contemporaneously with when those projects begin delivering benefits to customers. Several parties intervened in the proceeding and all parties participated in settlement discussions. In April 2018 the LPSC approved an unopposed joint motion filed by Entergy Louisiana and the LPSC staff that settles the matter. The settlement extends the formula rate plan for three years, providing for rates through at least August 2021. In addition to retaining the major features of the traditional formula rate plan, substantive features of the extended formula rate plan include: • a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year and for the St. Charles Power Station when it enters commercial operation; • a 9.8% target earned return on common equity for the 2018 and 2019 test years; • narrowing of the common equity bandwidth to plus or minus 60 basis points around the target earned return on common equity; • a cap on potential revenue increase of $35 million for the 2018 evaluation period, and $70 million for the cumulative 2018 and 2019 evaluation periods, on formula rate plan cost of service rate increases (the cap excludes rate changes associated with the transmission recovery mechanism described below and rate changes associated with additional capacity); • a framework for the flow back of certain tax benefits created by the Tax Act to customers, as described in “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above; and • a transmission recovery mechanism providing for the opportunity to recover certain transmission related expenditures in excess of $100 million annually for projects placed in service up to one month prior to rate change outside of sharing that is designed to operate in a manner similar to the additional capacity mechanism. 2017 Formula Rate Plan Filing In June 2018, Entergy Louisiana filed its formula rate plan evaluation report for its 2017 calendar year operations. As stated above under “Formula Rate Plan Extension Request” for the 2017 test year there will be a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year. As such, base rider formula rate plan revenue is to be adjusted prospectively to increase or decrease the earned return on equity fully to the approved cost of equity of 9.95% . The 2017 test year evaluation report produced an earned return on equity of 8.16% , due in large part to revenue-neutral realignments to other recovery mechanisms. Without these realignments, the evaluation report produces an earned return on equity of 9.88% and a resulting base rider formula rate plan revenue increase of $4.8 million . Excluding the Tax Act credits provided for by the tax reform adjustment mechanisms, total formula rate plan revenues will further increase by a total of $98 million as a result of the evaluation report due to adjustments to the additional capacity and MISO cost recovery mechanisms of the formula rate plan, and implementation of the transmission recovery mechanism. Results of the 2017 evaluation report filing will be implemented with the September 2018 billing month. Entergy Louisiana also included in its filing a presentation of an initial proposal to combine the legacy Entergy Louisiana and legacy Entergy Gulf States Louisiana residential rates, which combination would be accomplished on a revenue neutral basis intended not to affect the rates of other customer classes. Union Power Station and Deactivation or Retirement Decisions for Entergy Louisiana Plants As discussed in the Form 10-K, as a term of the LPSC-approved settlement authorizing the purchase of Power Blocks 3 and 4 of the Union Power Station, Entergy Louisiana agreed to make a filing with the LPSC to review its decisions to deactivate Ninemile 3 and Willow Glen 2 and 4 and its decision to retire Little Gypsy 1. In January 2016, Entergy Louisiana made its compliance filing with the LPSC. Entergy Louisiana, LPSC staff, and intervenors participated in a technical conference in March 2016 where Entergy Louisiana presented information on its deactivation/retirement decisions for these four units in addition to information on the current deactivation decisions for the ten-year planning horizon. No party contests the prudence of the decision to deactivate Willow Glen 2 and 4 or suggests reactivation of these units; however, issues have been raised related to Entergy Louisiana’s decision to give up its transmission service rights in MISO for Willow Glen 2 and 4 rather than placing the units into suspended status for the three-year term permitted by MISO. In March 2018 the LPSC adopted the ALJ’s recommended order finding that Entergy Louisiana did not demonstrate that its decision to permanently surrender transmission rights for the mothballed (not retired) Willow Glen 2 and 4 units was reasonable and that Entergy Louisiana should hold customers harmless from increased transmission expenses should those units be reactivated. Because no party or the LPSC suggested that Willow Glen 2 and 4 should be reactivated and because the cost to return those units to service far exceeds the revenue the units were expected to generate in MISO, Entergy Louisiana retired Willow Glen 2 and 4 in March 2018. Entergy Louisiana submitted a compliance filing regarding retirement of Willow Glen 2 and 4, and the LPSC closed the proceeding. Retail Rates - Gas 2017 Rate Stabilization Plan Filing In January 2018, Entergy Louisiana filed with the LPSC its gas rate stabilization plan for the test year ended September 30, 2017. The filing of the evaluation report for the test year 2017 reflected an earned return on common equity of 9.06% . This earned return is below the earnings sharing band of the rate stabilization plan and results in a rate increase of $0.1 million . Due to the enactment of the Tax Act in late-December 2017, Entergy Louisiana did not have adequate time to reflect the effects of this tax legislation in the rate stabilization plan. In April 2018 Entergy Louisiana filed a supplemental evaluation report for the test year ended September 2017, reflecting the effects of the Tax Act, including a proposal to use the unprotected excess accumulated deferred income taxes to offset storm restoration deferred operation and maintenance costs incurred by Entergy Louisiana in connection with the August 2016 flooding disaster in its gas service area. The supplemental filing reflects an earned return on common equity of 10.79% . As-filed rates from the supplemental filing were implemented, subject to refund, with customers receiving a cost reduction of approximately $0.7 million effective with bills rendered on and after the first billing cycle of May 2018, as well as a $0.2 million reduction in the gas infrastructure rider effective with bills rendered on and after the first billing cycle of July 2018. The proceeding is currently in its discovery phase. A procedural schedule has not been established. Filings with the MPSC (Entergy Mississippi) Formula Rate Plan In March 2018, Entergy Mississippi submitted its formula rate plan 2018 test year filing and 2017 look-back filing showing Entergy Mississippi’s earned return for the historical 2017 calendar year and projected earned return for the 2018 calendar year, in large part as a result of the lower federal corporate income tax rate effective in 2018, to be within the formula rate plan bandwidth, resulting in no change in rates. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a stipulation that confirmed that Entergy Mississippi’s earned returns for both the 2017 look-back filing and 2018 test year were within the respective formula rate plan bandwidths. In June 2018 the MPSC approved the stipulation, which resulted in no change in rates. See “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above for additional discussion regarding the proposed treatment of the effects of the lower federal corporate income tax rate. Internal Restructuring In March 2018, Entergy Mississippi filed an application with the MPSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Mississippi to a new entity, which would ultimately be held by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the MPSC, the FERC, and the NRC. If the MPSC approves the restructuring by August 2018 and the restructuring closes on or before December 1, 2018, Entergy Mississippi proposed in its application to credit retail customers $27 million over six years, beginning in 2019. If the MPSC, the FERC, and the NRC approvals are obtained, Entergy Mississippi expects the restructuring will be consummated on or before December 1, 2018. It is currently contemplated that Entergy Mississippi would undertake a multi-step restructuring, which would include the following: • Entergy Mississippi would redeem its outstanding preferred stock, at the aggregate redemption price of approximately $21.2 million , including call premiums, plus accumulated and unpaid dividends, if any. • Entergy Mississippi would convert from a Mississippi corporation to a Texas corporation. • Under the Texas Business Organizations Code (TXBOC), Entergy Mississippi will allocate substantially all of its assets to a new subsidiary, Entergy Mississippi Power and Light, LLC, a Texas limited liability company (Entergy Mississippi Power and Light), and Entergy Mississippi Power and Light will assume substantially all of the liabilities of Entergy Mississippi, in a transaction regarded as a merger under the TXBOC. Entergy Mississippi will remain in existence and hold the membership interests in Entergy Mississippi Power and Light. • Entergy Mississippi will contribute the membership interests in Entergy Mississippi Power and Light to an affiliate (Entergy Utility Holding Company, LLC, a Texas limited liability company and subsidiary of Entergy Corporation). As a result of the contribution, Entergy Mississippi Power and Light will be a wholly-owned subsidiary of Entergy Utility Holding Company, LLC. • Entergy Mississippi will change its name to Entergy Utility Enterprises, Inc., and Entergy Mississippi Power and Light will then change its name to Entergy Mississippi, LLC. Upon the completion of the restructuring, Entergy Mississippi, LLC will hold substantially all of the assets, and will have assumed substantially all of the liabilities, of Entergy Mississippi. Entergy Mississippi may modify or supplement the steps to be taken to effectuate the restructuring. Filings with the City Council (Entergy New Orleans) Energy Smart Programs As discussed in the Form 10-K, in September 2017, Entergy New Orleans filed a supplemental plan and proposed several options for an interim cost recovery mechanism necessary to recover program costs during the period between when existing funds directed to Energy Smart programs were depleted and when new rates from the anticipated 2018 combined rate case, which will include a cost recovery mechanism for Energy Smart funding, take effect (estimated to be August 2019). In December 2017 the City Council approved an energy efficiency cost recovery rider as an interim funding mechanism for Energy Smart, subject to verification that no additional funding sources exist. In June 2018 the City Council also approved a resolution recommending that Entergy New Orleans allocate approximately $13.5 million of benefits resulting from the Tax Act to Energy Smart. Entergy New Orleans is seeking approval of a permanent and stable source of funding for Energy Smart as part of its base rate case filed |
Entergy Arkansas [Member] | |
Rate and Regulatory Matters | RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Regulatory Assets and Regulatory Liabilities See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion. Regulatory activity regarding the Tax Cuts and Jobs Act See the “ Other Tax Matters - Tax Cuts and Jobs Act ” section in Note 3 to the financial statements in the Form 10-K for discussion of the effects of the enactment in December 2017 of the Tax Cuts and Jobs Act (the Tax Act), including its effects on Entergy’s and the Registrant Subsidiaries’ regulatory asset/liability for income taxes. After assessing the activity described in more detail below regarding the status of the proposals the Registrant Subsidiaries made to their regulators for the return of unprotected excess accumulated deferred income taxes to customers, in 2018, Entergy and each of the Registrant Subsidiaries are reclassifying from the regulatory liability for income taxes to current liabilities the portion of their unprotected excess accumulated deferred income taxes that they expect to return to customers over the next twelve months. Entergy Arkansas See the Form 10-K for a discussion of the activity of the APSC and Entergy Arkansas after enactment of the Tax Act in December 2017. The APSC granted Entergy Arkansas’s request for clarification regarding the APSC’s order issued after enactment of the Tax Act. The APSC stated that its order was not a final determination and that the APSC had made no decision at that time on the appropriate final accounting or ratemaking treatment of the amounts in question. A hearing was held in May 2018 regarding the APSC’s inquiries into the effects of the Tax Act, including Entergy Arkansas’s proposal to utilize its existing formula rate plan rider for its customers to realize the remaining benefits of the Tax Act. In July 2018 the APSC issued an order agreeing with Entergy Arkansas’s proposal to have the effects on current income tax expense flow through Entergy Arkansas’s formula rate plan rider and its treatment of protected and unprotected excess accumulated deferred income taxes. The APSC also directed Entergy Arkansas to submit in the tax adjustment rider proceeding, discussed below, the adjustments to all other riders affected by the Tax Act and to include an amendment for a true up mechanism where a rider affected by the Tax Act does not already contain a true up mechanism. Consistent with its previously stated intent to return unprotected excess accumulated deferred income taxes to customers as expeditiously as possible, Entergy Arkansas initiated a tariff proceeding in February 2018 proposing to establish a tax adjustment rider to provide retail customers with certain tax benefits associated with the Tax Act. For the residential customer class, the unprotected excess accumulated deferred income taxes will be returned to customers over a 21-month period from April 2018 through December 2019. For all other customer classes, the unprotected excess accumulated deferred income taxes will be returned to customers over a 9-month period from April 2018 through December 2018. A true-up provision also was included, with any over- or under-returned unprotected excess accumulated deferred income taxes to be credited or billed to customers during the billing month of January 2020, with any residual amounts of over- or under-returned unprotected excess accumulated deferred income taxes to be flowed through Entergy Arkansas’s energy cost recovery rider. In March 2018 the APSC approved the tax adjustment rider effective with the first billing cycle of April 2018. Entergy Louisiana See the Form 10-K for a discussion of the activity of the LPSC and Entergy Louisiana after enactment of the Tax Act in December 2017. In July 2018 the LPSC issued a proposed rule requiring utilities to adjust rates prospectively to reflect the lower tax rate (either through a formula rate plan or rate case), refund excess tax expense collected since January 1, 2018 until the lower tax rate is reflected in rates (with the refund occurring over one year), and refund excess accumulated deferred income taxes over two years. Entergy Louisiana believes that its formula rate plan settlement, approved in April 2018 and discussed below, addresses fully its obligations regarding the Tax Act and will seek such confirmation in its comments to the proposed rule. In the formula rate plan settlement approved by the LPSC in April 2018 the parties agreed that Entergy Louisiana will return to customers one-half of its eligible unprotected excess deferred income taxes from May 2018 through December 2018 and return to customers the other half from January 2019 through August 2022. In addition, the parties agreed that in order to flow back to customers certain other tax benefits created by the Tax Act, Entergy Louisiana would establish a regulatory liability effective January 1, 2018 in the amount of $9.1 million per month until new base rates under the formula rate plan are established, and this regulatory liability will be returned to customers over the next formula rate plan rate-effective period. Entergy Louisiana recorded a $55 million regulatory liability thus far in 2018 pursuant to this provision of the settlement. The LPSC staff and intervenors in the settlement reserved the right to obtain data from Entergy Louisiana to confirm the determination of excess accumulated deferred income taxes resulting from the Tax Act and analysis thereof as part of the formula rate plan review proceeding for the 2017 test year filing, which, as discussed below, Entergy Louisiana filed in June 2018. Entergy Mississippi As discussed in the Form 10-K, after enactment of the Tax Act the MPSC ordered utilities, including Entergy Mississippi, that operate under a formula rate plan to file a description by February 26, 2018, of how the Tax Act will be reflected in the formula rate plan under which the utility operates. Entergy Mississippi's plan, as filed with the MPSC on February 26, 2018, included a request to reflect the changes related to the Tax Act in the 2018 formula rate plan filing. Entergy Mississippi filed its 2018 formula rate plan on March 15, 2018 and included a proposal to return all of its unprotected excess accumulated deferred income taxes to customers through rates or in exchange for other assets, or a combination of both, by the end of 2018. Also, in March 2018 the MPSC issued a subsequent order in its generic tax reform docket ordering utilities, including Entergy Mississippi, to explain the implementation of the utilities tax adjustment clause, or, in the alternative, why the tax adjustment clause is inapplicable; submit an analysis of the ratemaking effects of the Tax Act on current and future revenue requirements for rate schedules that include a gross-up for federal taxes; and make appropriate accounting entries to recognize the removal of excess deferred taxes from the balance of the utility’s accumulated deferred income tax account, or, in the alternative, explain why recording such entries is not appropriate. In April 2018, Entergy Mississippi filed its response to the MPSC stating that the tax adjustment clauses in its base rates are properly implemented through its formula rate plan. Entergy Mississippi also provided analysis of the ratemaking effects of the Tax Act. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into and filed a joint stipulation in Entergy Mississippi’s formula rate plan filing that addressed Entergy Mississippi’s 2018 formula rate plan evaluation report and the ratemaking effects of the Tax Act. In June 2018 the MPSC approved the stipulation, which provides for incorporating the reduction of the statutory federal income tax rate through the formula rate plan and the flow-back of protected excess accumulated deferred income taxes over approximately 40 years through the formula rate plan. The stipulation also provides for the offset of unprotected excess accumulated deferred income taxes of $127.2 million against net utility plant and $2.2 million against other regulatory assets, and the return to customers of the remaining balance of unprotected excess accumulated deferred income taxes as recovery of a portion of fuel oil inventory and customer bill credits over a 3-month period from July 2018 through September 2018, with any true-up to be reflected in the November 2018 power management rider submittal. Entergy Mississippi recorded the reduction against net utility plant and other regulatory assets in June 2018. Entergy New Orleans As discussed in the Form 10-K, after enactment of the Tax Act the City Council passed a resolution ordering Entergy New Orleans to, effective January 1, 2018, record deferred regulatory liabilities to account for the Tax Act’s effect on Entergy New Orleans’s revenue requirement and to make a filing by mid-March 2018 regarding the Tax Act’s effects on Entergy New Orleans’s operating income and rate base and potential mechanisms for customers to receive benefits of the Tax Act. The City Council’s resolution also directed Entergy New Orleans to request that Entergy Services file with the FERC for revisions of the Unit Power Sales Agreement and MSS-4 replacement tariffs to address the return of excess accumulated deferred income taxes. Entergy has submitted filings of this type to the FERC. In March 2018, Entergy New Orleans filed its response to that resolution stating that the Tax Act reduced income tax expense from what is presently reflected in rates by approximately $8.2 million annually for electric operations and by approximately $1.3 million annually for gas operations. In the filing, Entergy New Orleans proposed to return to customers from June 2018 through August 2019 the benefits of the reduction in income tax expense and its unprotected excess accumulated deferred income taxes through a combination of bill credits and investments in energy efficiency programs, grid modernization, and Smart City projects. Entergy New Orleans submitted supplemental information in April 2018 and May 2018. Shortly thereafter, Entergy New Orleans and the City Council’s advisors reached an agreement in principle that provides for benefits that will be realized by Entergy New Orleans customers through bill credits starting in July 2018 and offsets to future investments in energy efficiency programs, grid modernization, and Smart City projects, as well as additional benefits related to the filings made at FERC. The agreement in principle was approved by the City Council in June 2018. Entergy Texas As discussed below, in May 2018, Entergy Texas filed its 2018 base rate case with the PUCT. Entergy Texas’s proposed rates and revenues reflect the inclusion of the federal income tax reductions due to the Tax Act. In the rate case Entergy Texas proposed to return its unprotected excess accumulated deferred income taxes to customers over a two-year period following PUCT approval. System Energy In a filing made with the FERC in March 2018, Entergy proposed revisions to the Unit Power Sales Agreement, among other agreements, to reflect the effects of the Tax Act. In the filing System Energy proposed to return all of its unprotected excess accumulated deferred income taxes to its customers by the end of 2018. In May 2018 the FERC accepted System Energy’s proposed tax revisions with an effective date of June 1, 2018, subject to refund and the outcome of settlement and hearing procedures. Settlement discussions are ongoing. Fuel and purchased power cost recovery Entergy Arkansas Energy Cost Recovery Rider In March 2018, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.01547 per kWh to $0.01882 per kWh. The Arkansas Attorney General filed a response to Entergy Arkansas’s annual redetermination filing requesting that the APSC suspend the proposed tariff to investigate the amount of the redetermination or, alternatively, to allow recovery subject to refund. Among the reasons the Arkansas Attorney General cited for suspension were questions pertaining to how Entergy Arkansas forecasted sales and potential implications of the Tax Act. Entergy Arkansas replied to the Arkansas Attorney General’s filing and stated that, to the extent there are questions pertaining to its load forecasting or the operation of the energy cost recovery rider, those issues exceed the scope of the instant rate redetermination. Entergy Arkansas also stated that potential effects of the Tax Act are appropriately considered in the APSC’s separate proceeding looking at potential implications of the new tax law. The APSC general staff filed a reply to the Arkansas Attorney General’s filing and agreed that Entergy Arkansas’s filing complied with the terms of the energy cost recovery rider. In April 2018 the APSC issued an order declining to suspend Entergy Arkansas’s energy cost recovery rider rate and declining to require further investigation at this time of the issues suggested by the Attorney General in the proceeding. The redetermined rate became effective with the first billing cycle of April 2018. Discovery continues to be conducted by the parties with respect to the redetermined rate. Entergy Mississippi Mississippi Attorney General Complaint As discussed in the Form 10-K the Mississippi Attorney General filed a complaint in state court in December 2008 against Entergy Corporation, Entergy Mississippi, Entergy Services, and Entergy Power alleging, among other things, violations of Mississippi statutes, fraud, and breach of good faith and fair dealing, and requesting an accounting and restitution. The defendants have denied the allegations. In June 2017 the District Court issued a case management order setting a trial date in November 2018. Discovery ended in May 2018. In June 2018, Entergy filed motions for summary judgment, which are currently pending before the District Court. In July 2018 the Mississippi Attorney General filed briefs opposing the summary judgment. Entergy Texas As discussed in the Form 10-K, in July 2015 certain parties filed briefs in an open PUCT proceeding asserting that Entergy Texas should refund to retail customers an additional $10.9 million in bandwidth remedy payments Entergy Texas received related to calendar year 2006 production costs. In October 2015 an ALJ issued a proposal for decision recommending that the additional bandwidth remedy payments be refunded to retail customers. In January 2016 the PUCT issued its order affirming the ALJ’s recommendation, and Entergy Texas filed a motion for rehearing of the PUCT’s decision, which the PUCT denied. In March 2016, Entergy Texas filed a complaint in Federal District Court for the Western District of Texas and a petition in the Travis County (State) District Court appealing the PUCT’s decision. The pending appeals did not stay the PUCT’s decision, and Entergy Texas refunded to customers the $10.9 million over a four-month period beginning with the first billing cycle of July 2016. The federal appeal of the PUCT’s January 2016 decision was heard in December 2016, and the Federal District Court granted Entergy Texas’s requested relief. In January 2017 the PUCT and an intervenor filed petitions for appeal of the Federal District Court ruling to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held before the Fifth Circuit in February 2018. In April 2018 the Fifth Circuit reversed the decision of the Federal District Court, reinstating the original PUCT decision. The State District Court appeal of the PUCT’s January 2016 decision remains pending. In December 2017, Entergy Texas filed an application for a fuel refund of approximately $30.5 million for the months of May 2017 through October 2017. Also in December 2017, the PUCT’s ALJ approved the refund on an interim basis. For most customers, the refunds flowed through bills beginning January 2018 and continued through March 2018. The fuel refund was approved by the PUCT in March 2018. Retail Rate Proceedings See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that information. Filings with the APSC (Entergy Arkansas) 2018 Formula Rate Plan Filing In July 2018, Entergy Arkansas filed with the APSC its 2018 formula rate plan filing to set its formula rate for the 2019 calendar year. The filing shows Entergy Arkansas’s projected earned return on common equity for the twelve months ended December 31, 2019 test period to be below the formula rate plan bandwidth. Additionally, the filing includes the first netting adjustment under the current formula rate plan for the historical test year 2017, which is a comparison of projected costs and sales approved in the 2016 formula rate plan filing to actual 2017 costs and sales data. The filing includes a projected $73.4 million revenue deficiency for 2019 and a $95.6 million revenue deficiency for the 2017 historical test year, for a total revenue requirement of $169 million for this filing. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Because Entergy Arkansas’s revenue requirement in this filing exceeds the constraint, the resulting increase is limited to four percent of total revenue, which is $65.4 million . Entergy Arkansas recommended that the parties to the proceeding support a hearing date in November 2018 and requested that the APSC issue an order approving the proposed formula rate plan adjustment in December 2018, with the proposed formula rate plan adjustment effective with the first billing cycle of January 2019. Internal Restructuring As discussed in the Form 10-K, in November 2017, Entergy Arkansas filed an application with the APSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Arkansas to a new entity, which would ultimately be owned by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the APSC, the FERC, and the NRC. Entergy Arkansas also filed a notice with the Missouri Public Service Commission in December 2017 out of an abundance of caution, although Entergy Arkansas does not serve any retail customers in Missouri. In April 2018 the Missouri Public Service Commission approved Entergy Arkansas’s filing. In July 2018, Entergy Arkansas filed a settlement, reached by all parties in the APSC proceeding, resolving all issues and seeking an APSC decision no later than September 1, 2018. If the appropriate approvals are obtained, Entergy Arkansas expects the restructuring will be consummated on or before December 1, 2018. Filings with the LPSC (Entergy Louisiana) Retail Rates - Electric 2016 Formula Rate Plan Filing As discussed in the Form 10-K, in May 2017, Entergy Louisiana filed its formula rate plan evaluation report for its 2016 calendar year operations. Rates reflecting the adjustments included in the formula rate plan evaluation report were implemented with the first billing cycle of September 2017, subject to refund. In September 2017 the LPSC issued its report indicating that no changes to Entergy Louisiana’s original formula rate plan evaluation report were required but reserved for several issues, including Entergy Louisiana’s September 2017 update to its formula rate plan evaluation report. In July 2018, Entergy Louisiana and the LPSC staff filed an unopposed joint report setting forth a correction to the annualization calculation, the effect of which was a net $3.5 million revenue requirement reduction, and indicating that there are no outstanding issues with the 2016 formula rate plan report, the supplemental report, or the interim updates. The LPSC voted to accept and approve the unopposed joint report in August 2018. Formula Rate Plan Extension Request In August 2017, Entergy Louisiana filed a request with the LPSC seeking to extend its formula rate plan for three years (2017-2019) with limited modifications of its terms. Those modifications include: a one-time resetting of base rates to the midpoint of the band at Entergy Louisiana’s authorized return on equity of 9.95% for the 2017 test year; narrowing of the formula rate plan bandwidth from a total of 160 basis points to 80 basis points; and a forward-looking mechanism that would allow Entergy Louisiana to recover certain transmission-related costs contemporaneously with when those projects begin delivering benefits to customers. Several parties intervened in the proceeding and all parties participated in settlement discussions. In April 2018 the LPSC approved an unopposed joint motion filed by Entergy Louisiana and the LPSC staff that settles the matter. The settlement extends the formula rate plan for three years, providing for rates through at least August 2021. In addition to retaining the major features of the traditional formula rate plan, substantive features of the extended formula rate plan include: • a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year and for the St. Charles Power Station when it enters commercial operation; • a 9.8% target earned return on common equity for the 2018 and 2019 test years; • narrowing of the common equity bandwidth to plus or minus 60 basis points around the target earned return on common equity; • a cap on potential revenue increase of $35 million for the 2018 evaluation period, and $70 million for the cumulative 2018 and 2019 evaluation periods, on formula rate plan cost of service rate increases (the cap excludes rate changes associated with the transmission recovery mechanism described below and rate changes associated with additional capacity); • a framework for the flow back of certain tax benefits created by the Tax Act to customers, as described in “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above; and • a transmission recovery mechanism providing for the opportunity to recover certain transmission related expenditures in excess of $100 million annually for projects placed in service up to one month prior to rate change outside of sharing that is designed to operate in a manner similar to the additional capacity mechanism. 2017 Formula Rate Plan Filing In June 2018, Entergy Louisiana filed its formula rate plan evaluation report for its 2017 calendar year operations. As stated above under “Formula Rate Plan Extension Request” for the 2017 test year there will be a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year. As such, base rider formula rate plan revenue is to be adjusted prospectively to increase or decrease the earned return on equity fully to the approved cost of equity of 9.95% . The 2017 test year evaluation report produced an earned return on equity of 8.16% , due in large part to revenue-neutral realignments to other recovery mechanisms. Without these realignments, the evaluation report produces an earned return on equity of 9.88% and a resulting base rider formula rate plan revenue increase of $4.8 million . Excluding the Tax Act credits provided for by the tax reform adjustment mechanisms, total formula rate plan revenues will further increase by a total of $98 million as a result of the evaluation report due to adjustments to the additional capacity and MISO cost recovery mechanisms of the formula rate plan, and implementation of the transmission recovery mechanism. Results of the 2017 evaluation report filing will be implemented with the September 2018 billing month. Entergy Louisiana also included in its filing a presentation of an initial proposal to combine the legacy Entergy Louisiana and legacy Entergy Gulf States Louisiana residential rates, which combination would be accomplished on a revenue neutral basis intended not to affect the rates of other customer classes. Union Power Station and Deactivation or Retirement Decisions for Entergy Louisiana Plants As discussed in the Form 10-K, as a term of the LPSC-approved settlement authorizing the purchase of Power Blocks 3 and 4 of the Union Power Station, Entergy Louisiana agreed to make a filing with the LPSC to review its decisions to deactivate Ninemile 3 and Willow Glen 2 and 4 and its decision to retire Little Gypsy 1. In January 2016, Entergy Louisiana made its compliance filing with the LPSC. Entergy Louisiana, LPSC staff, and intervenors participated in a technical conference in March 2016 where Entergy Louisiana presented information on its deactivation/retirement decisions for these four units in addition to information on the current deactivation decisions for the ten-year planning horizon. No party contests the prudence of the decision to deactivate Willow Glen 2 and 4 or suggests reactivation of these units; however, issues have been raised related to Entergy Louisiana’s decision to give up its transmission service rights in MISO for Willow Glen 2 and 4 rather than placing the units into suspended status for the three-year term permitted by MISO. In March 2018 the LPSC adopted the ALJ’s recommended order finding that Entergy Louisiana did not demonstrate that its decision to permanently surrender transmission rights for the mothballed (not retired) Willow Glen 2 and 4 units was reasonable and that Entergy Louisiana should hold customers harmless from increased transmission expenses should those units be reactivated. Because no party or the LPSC suggested that Willow Glen 2 and 4 should be reactivated and because the cost to return those units to service far exceeds the revenue the units were expected to generate in MISO, Entergy Louisiana retired Willow Glen 2 and 4 in March 2018. Entergy Louisiana submitted a compliance filing regarding retirement of Willow Glen 2 and 4, and the LPSC closed the proceeding. Retail Rates - Gas 2017 Rate Stabilization Plan Filing In January 2018, Entergy Louisiana filed with the LPSC its gas rate stabilization plan for the test year ended September 30, 2017. The filing of the evaluation report for the test year 2017 reflected an earned return on common equity of 9.06% . This earned return is below the earnings sharing band of the rate stabilization plan and results in a rate increase of $0.1 million . Due to the enactment of the Tax Act in late-December 2017, Entergy Louisiana did not have adequate time to reflect the effects of this tax legislation in the rate stabilization plan. In April 2018 Entergy Louisiana filed a supplemental evaluation report for the test year ended September 2017, reflecting the effects of the Tax Act, including a proposal to use the unprotected excess accumulated deferred income taxes to offset storm restoration deferred operation and maintenance costs incurred by Entergy Louisiana in connection with the August 2016 flooding disaster in its gas service area. The supplemental filing reflects an earned return on common equity of 10.79% . As-filed rates from the supplemental filing were implemented, subject to refund, with customers receiving a cost reduction of approximately $0.7 million effective with bills rendered on and after the first billing cycle of May 2018, as well as a $0.2 million reduction in the gas infrastructure rider effective with bills rendered on and after the first billing cycle of July 2018. The proceeding is currently in its discovery phase. A procedural schedule has not been established. Filings with the MPSC (Entergy Mississippi) Formula Rate Plan In March 2018, Entergy Mississippi submitted its formula rate plan 2018 test year filing and 2017 look-back filing showing Entergy Mississippi’s earned return for the historical 2017 calendar year and projected earned return for the 2018 calendar year, in large part as a result of the lower federal corporate income tax rate effective in 2018, to be within the formula rate plan bandwidth, resulting in no change in rates. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a stipulation that confirmed that Entergy Mississippi’s earned returns for both the 2017 look-back filing and 2018 test year were within the respective formula rate plan bandwidths. In June 2018 the MPSC approved the stipulation, which resulted in no change in rates. See “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above for additional discussion regarding the proposed treatment of the effects of the lower federal corporate income tax rate. Internal Restructuring In March 2018, Entergy Mississippi filed an application with the MPSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Mississippi to a new entity, which would ultimately be held by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the MPSC, the FERC, and the NRC. If the MPSC approves the restructuring by August 2018 and the restructuring closes on or before December 1, 2018, Entergy Mississippi proposed in its application to credit retail customers $27 million over six years, beginning in 2019. If the MPSC, the FERC, and the NRC approvals are obtained, Entergy Mississippi expects the restructuring will be consummated on or before December 1, 2018. It is currently contemplated that Entergy Mississippi would undertake a multi-step restructuring, which would include the following: • Entergy Mississippi would redeem its outstanding preferred stock, at the aggregate redemption price of approximately $21.2 million , including call premiums, plus accumulated and unpaid dividends, if any. • Entergy Mississippi would convert from a Mississippi corporation to a Texas corporation. • Under the Texas Business Organizations Code (TXBOC), Entergy Mississippi will allocate substantially all of its assets to a new subsidiary, Entergy Mississippi Power and Light, LLC, a Texas limited liability company (Entergy Mississippi Power and Light), and Entergy Mississippi Power and Light will assume substantially all of the liabilities of Entergy Mississippi, in a transaction regarded as a merger under the TXBOC. Entergy Mississippi will remain in existence and hold the membership interests in Entergy Mississippi Power and Light. • Entergy Mississippi will contribute the membership interests in Entergy Mississippi Power and Light to an affiliate (Entergy Utility Holding Company, LLC, a Texas limited liability company and subsidiary of Entergy Corporation). As a result of the contribution, Entergy Mississippi Power and Light will be a wholly-owned subsidiary of Entergy Utility Holding Company, LLC. • Entergy Mississippi will change its name to Entergy Utility Enterprises, Inc., and Entergy Mississippi Power and Light will then change its name to Entergy Mississippi, LLC. Upon the completion of the restructuring, Entergy Mississippi, LLC will hold substantially all of the assets, and will have assumed substantially all of the liabilities, of Entergy Mississippi. Entergy Mississippi may modify or supplement the steps to be taken to effectuate the restructuring. Filings with the City Council (Entergy New Orleans) Energy Smart Programs As discussed in the Form 10-K, in September 2017, Entergy New Orleans filed a supplemental plan and proposed several options for an interim cost recovery mechanism necessary to recover program costs during the period between when existing funds directed to Energy Smart programs were depleted and when new rates from the anticipated 2018 combined rate case, which will include a cost recovery mechanism for Energy Smart funding, take effect (estimated to be August 2019). In December 2017 the City Council approved an energy efficiency cost recovery rider as an interim funding mechanism for Energy Smart, subject to verification that no additional funding sources exist. In June 2018 the City Council also approved a resolution recommending that Entergy New Orleans allocate approximately $13.5 million of benefits resulting from the Tax Act to Energy Smart. Entergy New Orleans is seeking approval of a permanent and stable source of funding for Energy Smart as part of its base rate case filed |
Entergy Louisiana [Member] | |
Rate and Regulatory Matters | RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Regulatory Assets and Regulatory Liabilities See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion. Regulatory activity regarding the Tax Cuts and Jobs Act See the “ Other Tax Matters - Tax Cuts and Jobs Act ” section in Note 3 to the financial statements in the Form 10-K for discussion of the effects of the enactment in December 2017 of the Tax Cuts and Jobs Act (the Tax Act), including its effects on Entergy’s and the Registrant Subsidiaries’ regulatory asset/liability for income taxes. After assessing the activity described in more detail below regarding the status of the proposals the Registrant Subsidiaries made to their regulators for the return of unprotected excess accumulated deferred income taxes to customers, in 2018, Entergy and each of the Registrant Subsidiaries are reclassifying from the regulatory liability for income taxes to current liabilities the portion of their unprotected excess accumulated deferred income taxes that they expect to return to customers over the next twelve months. Entergy Arkansas See the Form 10-K for a discussion of the activity of the APSC and Entergy Arkansas after enactment of the Tax Act in December 2017. The APSC granted Entergy Arkansas’s request for clarification regarding the APSC’s order issued after enactment of the Tax Act. The APSC stated that its order was not a final determination and that the APSC had made no decision at that time on the appropriate final accounting or ratemaking treatment of the amounts in question. A hearing was held in May 2018 regarding the APSC’s inquiries into the effects of the Tax Act, including Entergy Arkansas’s proposal to utilize its existing formula rate plan rider for its customers to realize the remaining benefits of the Tax Act. In July 2018 the APSC issued an order agreeing with Entergy Arkansas’s proposal to have the effects on current income tax expense flow through Entergy Arkansas’s formula rate plan rider and its treatment of protected and unprotected excess accumulated deferred income taxes. The APSC also directed Entergy Arkansas to submit in the tax adjustment rider proceeding, discussed below, the adjustments to all other riders affected by the Tax Act and to include an amendment for a true up mechanism where a rider affected by the Tax Act does not already contain a true up mechanism. Consistent with its previously stated intent to return unprotected excess accumulated deferred income taxes to customers as expeditiously as possible, Entergy Arkansas initiated a tariff proceeding in February 2018 proposing to establish a tax adjustment rider to provide retail customers with certain tax benefits associated with the Tax Act. For the residential customer class, the unprotected excess accumulated deferred income taxes will be returned to customers over a 21-month period from April 2018 through December 2019. For all other customer classes, the unprotected excess accumulated deferred income taxes will be returned to customers over a 9-month period from April 2018 through December 2018. A true-up provision also was included, with any over- or under-returned unprotected excess accumulated deferred income taxes to be credited or billed to customers during the billing month of January 2020, with any residual amounts of over- or under-returned unprotected excess accumulated deferred income taxes to be flowed through Entergy Arkansas’s energy cost recovery rider. In March 2018 the APSC approved the tax adjustment rider effective with the first billing cycle of April 2018. Entergy Louisiana See the Form 10-K for a discussion of the activity of the LPSC and Entergy Louisiana after enactment of the Tax Act in December 2017. In July 2018 the LPSC issued a proposed rule requiring utilities to adjust rates prospectively to reflect the lower tax rate (either through a formula rate plan or rate case), refund excess tax expense collected since January 1, 2018 until the lower tax rate is reflected in rates (with the refund occurring over one year), and refund excess accumulated deferred income taxes over two years. Entergy Louisiana believes that its formula rate plan settlement, approved in April 2018 and discussed below, addresses fully its obligations regarding the Tax Act and will seek such confirmation in its comments to the proposed rule. In the formula rate plan settlement approved by the LPSC in April 2018 the parties agreed that Entergy Louisiana will return to customers one-half of its eligible unprotected excess deferred income taxes from May 2018 through December 2018 and return to customers the other half from January 2019 through August 2022. In addition, the parties agreed that in order to flow back to customers certain other tax benefits created by the Tax Act, Entergy Louisiana would establish a regulatory liability effective January 1, 2018 in the amount of $9.1 million per month until new base rates under the formula rate plan are established, and this regulatory liability will be returned to customers over the next formula rate plan rate-effective period. Entergy Louisiana recorded a $55 million regulatory liability thus far in 2018 pursuant to this provision of the settlement. The LPSC staff and intervenors in the settlement reserved the right to obtain data from Entergy Louisiana to confirm the determination of excess accumulated deferred income taxes resulting from the Tax Act and analysis thereof as part of the formula rate plan review proceeding for the 2017 test year filing, which, as discussed below, Entergy Louisiana filed in June 2018. Entergy Mississippi As discussed in the Form 10-K, after enactment of the Tax Act the MPSC ordered utilities, including Entergy Mississippi, that operate under a formula rate plan to file a description by February 26, 2018, of how the Tax Act will be reflected in the formula rate plan under which the utility operates. Entergy Mississippi's plan, as filed with the MPSC on February 26, 2018, included a request to reflect the changes related to the Tax Act in the 2018 formula rate plan filing. Entergy Mississippi filed its 2018 formula rate plan on March 15, 2018 and included a proposal to return all of its unprotected excess accumulated deferred income taxes to customers through rates or in exchange for other assets, or a combination of both, by the end of 2018. Also, in March 2018 the MPSC issued a subsequent order in its generic tax reform docket ordering utilities, including Entergy Mississippi, to explain the implementation of the utilities tax adjustment clause, or, in the alternative, why the tax adjustment clause is inapplicable; submit an analysis of the ratemaking effects of the Tax Act on current and future revenue requirements for rate schedules that include a gross-up for federal taxes; and make appropriate accounting entries to recognize the removal of excess deferred taxes from the balance of the utility’s accumulated deferred income tax account, or, in the alternative, explain why recording such entries is not appropriate. In April 2018, Entergy Mississippi filed its response to the MPSC stating that the tax adjustment clauses in its base rates are properly implemented through its formula rate plan. Entergy Mississippi also provided analysis of the ratemaking effects of the Tax Act. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into and filed a joint stipulation in Entergy Mississippi’s formula rate plan filing that addressed Entergy Mississippi’s 2018 formula rate plan evaluation report and the ratemaking effects of the Tax Act. In June 2018 the MPSC approved the stipulation, which provides for incorporating the reduction of the statutory federal income tax rate through the formula rate plan and the flow-back of protected excess accumulated deferred income taxes over approximately 40 years through the formula rate plan. The stipulation also provides for the offset of unprotected excess accumulated deferred income taxes of $127.2 million against net utility plant and $2.2 million against other regulatory assets, and the return to customers of the remaining balance of unprotected excess accumulated deferred income taxes as recovery of a portion of fuel oil inventory and customer bill credits over a 3-month period from July 2018 through September 2018, with any true-up to be reflected in the November 2018 power management rider submittal. Entergy Mississippi recorded the reduction against net utility plant and other regulatory assets in June 2018. Entergy New Orleans As discussed in the Form 10-K, after enactment of the Tax Act the City Council passed a resolution ordering Entergy New Orleans to, effective January 1, 2018, record deferred regulatory liabilities to account for the Tax Act’s effect on Entergy New Orleans’s revenue requirement and to make a filing by mid-March 2018 regarding the Tax Act’s effects on Entergy New Orleans’s operating income and rate base and potential mechanisms for customers to receive benefits of the Tax Act. The City Council’s resolution also directed Entergy New Orleans to request that Entergy Services file with the FERC for revisions of the Unit Power Sales Agreement and MSS-4 replacement tariffs to address the return of excess accumulated deferred income taxes. Entergy has submitted filings of this type to the FERC. In March 2018, Entergy New Orleans filed its response to that resolution stating that the Tax Act reduced income tax expense from what is presently reflected in rates by approximately $8.2 million annually for electric operations and by approximately $1.3 million annually for gas operations. In the filing, Entergy New Orleans proposed to return to customers from June 2018 through August 2019 the benefits of the reduction in income tax expense and its unprotected excess accumulated deferred income taxes through a combination of bill credits and investments in energy efficiency programs, grid modernization, and Smart City projects. Entergy New Orleans submitted supplemental information in April 2018 and May 2018. Shortly thereafter, Entergy New Orleans and the City Council’s advisors reached an agreement in principle that provides for benefits that will be realized by Entergy New Orleans customers through bill credits starting in July 2018 and offsets to future investments in energy efficiency programs, grid modernization, and Smart City projects, as well as additional benefits related to the filings made at FERC. The agreement in principle was approved by the City Council in June 2018. Entergy Texas As discussed below, in May 2018, Entergy Texas filed its 2018 base rate case with the PUCT. Entergy Texas’s proposed rates and revenues reflect the inclusion of the federal income tax reductions due to the Tax Act. In the rate case Entergy Texas proposed to return its unprotected excess accumulated deferred income taxes to customers over a two-year period following PUCT approval. System Energy In a filing made with the FERC in March 2018, Entergy proposed revisions to the Unit Power Sales Agreement, among other agreements, to reflect the effects of the Tax Act. In the filing System Energy proposed to return all of its unprotected excess accumulated deferred income taxes to its customers by the end of 2018. In May 2018 the FERC accepted System Energy’s proposed tax revisions with an effective date of June 1, 2018, subject to refund and the outcome of settlement and hearing procedures. Settlement discussions are ongoing. Fuel and purchased power cost recovery Entergy Arkansas Energy Cost Recovery Rider In March 2018, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.01547 per kWh to $0.01882 per kWh. The Arkansas Attorney General filed a response to Entergy Arkansas’s annual redetermination filing requesting that the APSC suspend the proposed tariff to investigate the amount of the redetermination or, alternatively, to allow recovery subject to refund. Among the reasons the Arkansas Attorney General cited for suspension were questions pertaining to how Entergy Arkansas forecasted sales and potential implications of the Tax Act. Entergy Arkansas replied to the Arkansas Attorney General’s filing and stated that, to the extent there are questions pertaining to its load forecasting or the operation of the energy cost recovery rider, those issues exceed the scope of the instant rate redetermination. Entergy Arkansas also stated that potential effects of the Tax Act are appropriately considered in the APSC’s separate proceeding looking at potential implications of the new tax law. The APSC general staff filed a reply to the Arkansas Attorney General’s filing and agreed that Entergy Arkansas’s filing complied with the terms of the energy cost recovery rider. In April 2018 the APSC issued an order declining to suspend Entergy Arkansas’s energy cost recovery rider rate and declining to require further investigation at this time of the issues suggested by the Attorney General in the proceeding. The redetermined rate became effective with the first billing cycle of April 2018. Discovery continues to be conducted by the parties with respect to the redetermined rate. Entergy Mississippi Mississippi Attorney General Complaint As discussed in the Form 10-K the Mississippi Attorney General filed a complaint in state court in December 2008 against Entergy Corporation, Entergy Mississippi, Entergy Services, and Entergy Power alleging, among other things, violations of Mississippi statutes, fraud, and breach of good faith and fair dealing, and requesting an accounting and restitution. The defendants have denied the allegations. In June 2017 the District Court issued a case management order setting a trial date in November 2018. Discovery ended in May 2018. In June 2018, Entergy filed motions for summary judgment, which are currently pending before the District Court. In July 2018 the Mississippi Attorney General filed briefs opposing the summary judgment. Entergy Texas As discussed in the Form 10-K, in July 2015 certain parties filed briefs in an open PUCT proceeding asserting that Entergy Texas should refund to retail customers an additional $10.9 million in bandwidth remedy payments Entergy Texas received related to calendar year 2006 production costs. In October 2015 an ALJ issued a proposal for decision recommending that the additional bandwidth remedy payments be refunded to retail customers. In January 2016 the PUCT issued its order affirming the ALJ’s recommendation, and Entergy Texas filed a motion for rehearing of the PUCT’s decision, which the PUCT denied. In March 2016, Entergy Texas filed a complaint in Federal District Court for the Western District of Texas and a petition in the Travis County (State) District Court appealing the PUCT’s decision. The pending appeals did not stay the PUCT’s decision, and Entergy Texas refunded to customers the $10.9 million over a four-month period beginning with the first billing cycle of July 2016. The federal appeal of the PUCT’s January 2016 decision was heard in December 2016, and the Federal District Court granted Entergy Texas’s requested relief. In January 2017 the PUCT and an intervenor filed petitions for appeal of the Federal District Court ruling to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held before the Fifth Circuit in February 2018. In April 2018 the Fifth Circuit reversed the decision of the Federal District Court, reinstating the original PUCT decision. The State District Court appeal of the PUCT’s January 2016 decision remains pending. In December 2017, Entergy Texas filed an application for a fuel refund of approximately $30.5 million for the months of May 2017 through October 2017. Also in December 2017, the PUCT’s ALJ approved the refund on an interim basis. For most customers, the refunds flowed through bills beginning January 2018 and continued through March 2018. The fuel refund was approved by the PUCT in March 2018. Retail Rate Proceedings See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that information. Filings with the APSC (Entergy Arkansas) 2018 Formula Rate Plan Filing In July 2018, Entergy Arkansas filed with the APSC its 2018 formula rate plan filing to set its formula rate for the 2019 calendar year. The filing shows Entergy Arkansas’s projected earned return on common equity for the twelve months ended December 31, 2019 test period to be below the formula rate plan bandwidth. Additionally, the filing includes the first netting adjustment under the current formula rate plan for the historical test year 2017, which is a comparison of projected costs and sales approved in the 2016 formula rate plan filing to actual 2017 costs and sales data. The filing includes a projected $73.4 million revenue deficiency for 2019 and a $95.6 million revenue deficiency for the 2017 historical test year, for a total revenue requirement of $169 million for this filing. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Because Entergy Arkansas’s revenue requirement in this filing exceeds the constraint, the resulting increase is limited to four percent of total revenue, which is $65.4 million . Entergy Arkansas recommended that the parties to the proceeding support a hearing date in November 2018 and requested that the APSC issue an order approving the proposed formula rate plan adjustment in December 2018, with the proposed formula rate plan adjustment effective with the first billing cycle of January 2019. Internal Restructuring As discussed in the Form 10-K, in November 2017, Entergy Arkansas filed an application with the APSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Arkansas to a new entity, which would ultimately be owned by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the APSC, the FERC, and the NRC. Entergy Arkansas also filed a notice with the Missouri Public Service Commission in December 2017 out of an abundance of caution, although Entergy Arkansas does not serve any retail customers in Missouri. In April 2018 the Missouri Public Service Commission approved Entergy Arkansas’s filing. In July 2018, Entergy Arkansas filed a settlement, reached by all parties in the APSC proceeding, resolving all issues and seeking an APSC decision no later than September 1, 2018. If the appropriate approvals are obtained, Entergy Arkansas expects the restructuring will be consummated on or before December 1, 2018. Filings with the LPSC (Entergy Louisiana) Retail Rates - Electric 2016 Formula Rate Plan Filing As discussed in the Form 10-K, in May 2017, Entergy Louisiana filed its formula rate plan evaluation report for its 2016 calendar year operations. Rates reflecting the adjustments included in the formula rate plan evaluation report were implemented with the first billing cycle of September 2017, subject to refund. In September 2017 the LPSC issued its report indicating that no changes to Entergy Louisiana’s original formula rate plan evaluation report were required but reserved for several issues, including Entergy Louisiana’s September 2017 update to its formula rate plan evaluation report. In July 2018, Entergy Louisiana and the LPSC staff filed an unopposed joint report setting forth a correction to the annualization calculation, the effect of which was a net $3.5 million revenue requirement reduction, and indicating that there are no outstanding issues with the 2016 formula rate plan report, the supplemental report, or the interim updates. The LPSC voted to accept and approve the unopposed joint report in August 2018. Formula Rate Plan Extension Request In August 2017, Entergy Louisiana filed a request with the LPSC seeking to extend its formula rate plan for three years (2017-2019) with limited modifications of its terms. Those modifications include: a one-time resetting of base rates to the midpoint of the band at Entergy Louisiana’s authorized return on equity of 9.95% for the 2017 test year; narrowing of the formula rate plan bandwidth from a total of 160 basis points to 80 basis points; and a forward-looking mechanism that would allow Entergy Louisiana to recover certain transmission-related costs contemporaneously with when those projects begin delivering benefits to customers. Several parties intervened in the proceeding and all parties participated in settlement discussions. In April 2018 the LPSC approved an unopposed joint motion filed by Entergy Louisiana and the LPSC staff that settles the matter. The settlement extends the formula rate plan for three years, providing for rates through at least August 2021. In addition to retaining the major features of the traditional formula rate plan, substantive features of the extended formula rate plan include: • a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year and for the St. Charles Power Station when it enters commercial operation; • a 9.8% target earned return on common equity for the 2018 and 2019 test years; • narrowing of the common equity bandwidth to plus or minus 60 basis points around the target earned return on common equity; • a cap on potential revenue increase of $35 million for the 2018 evaluation period, and $70 million for the cumulative 2018 and 2019 evaluation periods, on formula rate plan cost of service rate increases (the cap excludes rate changes associated with the transmission recovery mechanism described below and rate changes associated with additional capacity); • a framework for the flow back of certain tax benefits created by the Tax Act to customers, as described in “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above; and • a transmission recovery mechanism providing for the opportunity to recover certain transmission related expenditures in excess of $100 million annually for projects placed in service up to one month prior to rate change outside of sharing that is designed to operate in a manner similar to the additional capacity mechanism. 2017 Formula Rate Plan Filing In June 2018, Entergy Louisiana filed its formula rate plan evaluation report for its 2017 calendar year operations. As stated above under “Formula Rate Plan Extension Request” for the 2017 test year there will be a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year. As such, base rider formula rate plan revenue is to be adjusted prospectively to increase or decrease the earned return on equity fully to the approved cost of equity of 9.95% . The 2017 test year evaluation report produced an earned return on equity of 8.16% , due in large part to revenue-neutral realignments to other recovery mechanisms. Without these realignments, the evaluation report produces an earned return on equity of 9.88% and a resulting base rider formula rate plan revenue increase of $4.8 million . Excluding the Tax Act credits provided for by the tax reform adjustment mechanisms, total formula rate plan revenues will further increase by a total of $98 million as a result of the evaluation report due to adjustments to the additional capacity and MISO cost recovery mechanisms of the formula rate plan, and implementation of the transmission recovery mechanism. Results of the 2017 evaluation report filing will be implemented with the September 2018 billing month. Entergy Louisiana also included in its filing a presentation of an initial proposal to combine the legacy Entergy Louisiana and legacy Entergy Gulf States Louisiana residential rates, which combination would be accomplished on a revenue neutral basis intended not to affect the rates of other customer classes. Union Power Station and Deactivation or Retirement Decisions for Entergy Louisiana Plants As discussed in the Form 10-K, as a term of the LPSC-approved settlement authorizing the purchase of Power Blocks 3 and 4 of the Union Power Station, Entergy Louisiana agreed to make a filing with the LPSC to review its decisions to deactivate Ninemile 3 and Willow Glen 2 and 4 and its decision to retire Little Gypsy 1. In January 2016, Entergy Louisiana made its compliance filing with the LPSC. Entergy Louisiana, LPSC staff, and intervenors participated in a technical conference in March 2016 where Entergy Louisiana presented information on its deactivation/retirement decisions for these four units in addition to information on the current deactivation decisions for the ten-year planning horizon. No party contests the prudence of the decision to deactivate Willow Glen 2 and 4 or suggests reactivation of these units; however, issues have been raised related to Entergy Louisiana’s decision to give up its transmission service rights in MISO for Willow Glen 2 and 4 rather than placing the units into suspended status for the three-year term permitted by MISO. In March 2018 the LPSC adopted the ALJ’s recommended order finding that Entergy Louisiana did not demonstrate that its decision to permanently surrender transmission rights for the mothballed (not retired) Willow Glen 2 and 4 units was reasonable and that Entergy Louisiana should hold customers harmless from increased transmission expenses should those units be reactivated. Because no party or the LPSC suggested that Willow Glen 2 and 4 should be reactivated and because the cost to return those units to service far exceeds the revenue the units were expected to generate in MISO, Entergy Louisiana retired Willow Glen 2 and 4 in March 2018. Entergy Louisiana submitted a compliance filing regarding retirement of Willow Glen 2 and 4, and the LPSC closed the proceeding. Retail Rates - Gas 2017 Rate Stabilization Plan Filing In January 2018, Entergy Louisiana filed with the LPSC its gas rate stabilization plan for the test year ended September 30, 2017. The filing of the evaluation report for the test year 2017 reflected an earned return on common equity of 9.06% . This earned return is below the earnings sharing band of the rate stabilization plan and results in a rate increase of $0.1 million . Due to the enactment of the Tax Act in late-December 2017, Entergy Louisiana did not have adequate time to reflect the effects of this tax legislation in the rate stabilization plan. In April 2018 Entergy Louisiana filed a supplemental evaluation report for the test year ended September 2017, reflecting the effects of the Tax Act, including a proposal to use the unprotected excess accumulated deferred income taxes to offset storm restoration deferred operation and maintenance costs incurred by Entergy Louisiana in connection with the August 2016 flooding disaster in its gas service area. The supplemental filing reflects an earned return on common equity of 10.79% . As-filed rates from the supplemental filing were implemented, subject to refund, with customers receiving a cost reduction of approximately $0.7 million effective with bills rendered on and after the first billing cycle of May 2018, as well as a $0.2 million reduction in the gas infrastructure rider effective with bills rendered on and after the first billing cycle of July 2018. The proceeding is currently in its discovery phase. A procedural schedule has not been established. Filings with the MPSC (Entergy Mississippi) Formula Rate Plan In March 2018, Entergy Mississippi submitted its formula rate plan 2018 test year filing and 2017 look-back filing showing Entergy Mississippi’s earned return for the historical 2017 calendar year and projected earned return for the 2018 calendar year, in large part as a result of the lower federal corporate income tax rate effective in 2018, to be within the formula rate plan bandwidth, resulting in no change in rates. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a stipulation that confirmed that Entergy Mississippi’s earned returns for both the 2017 look-back filing and 2018 test year were within the respective formula rate plan bandwidths. In June 2018 the MPSC approved the stipulation, which resulted in no change in rates. See “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above for additional discussion regarding the proposed treatment of the effects of the lower federal corporate income tax rate. Internal Restructuring In March 2018, Entergy Mississippi filed an application with the MPSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Mississippi to a new entity, which would ultimately be held by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the MPSC, the FERC, and the NRC. If the MPSC approves the restructuring by August 2018 and the restructuring closes on or before December 1, 2018, Entergy Mississippi proposed in its application to credit retail customers $27 million over six years, beginning in 2019. If the MPSC, the FERC, and the NRC approvals are obtained, Entergy Mississippi expects the restructuring will be consummated on or before December 1, 2018. It is currently contemplated that Entergy Mississippi would undertake a multi-step restructuring, which would include the following: • Entergy Mississippi would redeem its outstanding preferred stock, at the aggregate redemption price of approximately $21.2 million , including call premiums, plus accumulated and unpaid dividends, if any. • Entergy Mississippi would convert from a Mississippi corporation to a Texas corporation. • Under the Texas Business Organizations Code (TXBOC), Entergy Mississippi will allocate substantially all of its assets to a new subsidiary, Entergy Mississippi Power and Light, LLC, a Texas limited liability company (Entergy Mississippi Power and Light), and Entergy Mississippi Power and Light will assume substantially all of the liabilities of Entergy Mississippi, in a transaction regarded as a merger under the TXBOC. Entergy Mississippi will remain in existence and hold the membership interests in Entergy Mississippi Power and Light. • Entergy Mississippi will contribute the membership interests in Entergy Mississippi Power and Light to an affiliate (Entergy Utility Holding Company, LLC, a Texas limited liability company and subsidiary of Entergy Corporation). As a result of the contribution, Entergy Mississippi Power and Light will be a wholly-owned subsidiary of Entergy Utility Holding Company, LLC. • Entergy Mississippi will change its name to Entergy Utility Enterprises, Inc., and Entergy Mississippi Power and Light will then change its name to Entergy Mississippi, LLC. Upon the completion of the restructuring, Entergy Mississippi, LLC will hold substantially all of the assets, and will have assumed substantially all of the liabilities, of Entergy Mississippi. Entergy Mississippi may modify or supplement the steps to be taken to effectuate the restructuring. Filings with the City Council (Entergy New Orleans) Energy Smart Programs As discussed in the Form 10-K, in September 2017, Entergy New Orleans filed a supplemental plan and proposed several options for an interim cost recovery mechanism necessary to recover program costs during the period between when existing funds directed to Energy Smart programs were depleted and when new rates from the anticipated 2018 combined rate case, which will include a cost recovery mechanism for Energy Smart funding, take effect (estimated to be August 2019). In December 2017 the City Council approved an energy efficiency cost recovery rider as an interim funding mechanism for Energy Smart, subject to verification that no additional funding sources exist. In June 2018 the City Council also approved a resolution recommending that Entergy New Orleans allocate approximately $13.5 million of benefits resulting from the Tax Act to Energy Smart. Entergy New Orleans is seeking approval of a permanent and stable source of funding for Energy Smart as part of its base rate case filed |
Entergy Mississippi [Member] | |
Rate and Regulatory Matters | RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Regulatory Assets and Regulatory Liabilities See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion. Regulatory activity regarding the Tax Cuts and Jobs Act See the “ Other Tax Matters - Tax Cuts and Jobs Act ” section in Note 3 to the financial statements in the Form 10-K for discussion of the effects of the enactment in December 2017 of the Tax Cuts and Jobs Act (the Tax Act), including its effects on Entergy’s and the Registrant Subsidiaries’ regulatory asset/liability for income taxes. After assessing the activity described in more detail below regarding the status of the proposals the Registrant Subsidiaries made to their regulators for the return of unprotected excess accumulated deferred income taxes to customers, in 2018, Entergy and each of the Registrant Subsidiaries are reclassifying from the regulatory liability for income taxes to current liabilities the portion of their unprotected excess accumulated deferred income taxes that they expect to return to customers over the next twelve months. Entergy Arkansas See the Form 10-K for a discussion of the activity of the APSC and Entergy Arkansas after enactment of the Tax Act in December 2017. The APSC granted Entergy Arkansas’s request for clarification regarding the APSC’s order issued after enactment of the Tax Act. The APSC stated that its order was not a final determination and that the APSC had made no decision at that time on the appropriate final accounting or ratemaking treatment of the amounts in question. A hearing was held in May 2018 regarding the APSC’s inquiries into the effects of the Tax Act, including Entergy Arkansas’s proposal to utilize its existing formula rate plan rider for its customers to realize the remaining benefits of the Tax Act. In July 2018 the APSC issued an order agreeing with Entergy Arkansas’s proposal to have the effects on current income tax expense flow through Entergy Arkansas’s formula rate plan rider and its treatment of protected and unprotected excess accumulated deferred income taxes. The APSC also directed Entergy Arkansas to submit in the tax adjustment rider proceeding, discussed below, the adjustments to all other riders affected by the Tax Act and to include an amendment for a true up mechanism where a rider affected by the Tax Act does not already contain a true up mechanism. Consistent with its previously stated intent to return unprotected excess accumulated deferred income taxes to customers as expeditiously as possible, Entergy Arkansas initiated a tariff proceeding in February 2018 proposing to establish a tax adjustment rider to provide retail customers with certain tax benefits associated with the Tax Act. For the residential customer class, the unprotected excess accumulated deferred income taxes will be returned to customers over a 21-month period from April 2018 through December 2019. For all other customer classes, the unprotected excess accumulated deferred income taxes will be returned to customers over a 9-month period from April 2018 through December 2018. A true-up provision also was included, with any over- or under-returned unprotected excess accumulated deferred income taxes to be credited or billed to customers during the billing month of January 2020, with any residual amounts of over- or under-returned unprotected excess accumulated deferred income taxes to be flowed through Entergy Arkansas’s energy cost recovery rider. In March 2018 the APSC approved the tax adjustment rider effective with the first billing cycle of April 2018. Entergy Louisiana See the Form 10-K for a discussion of the activity of the LPSC and Entergy Louisiana after enactment of the Tax Act in December 2017. In July 2018 the LPSC issued a proposed rule requiring utilities to adjust rates prospectively to reflect the lower tax rate (either through a formula rate plan or rate case), refund excess tax expense collected since January 1, 2018 until the lower tax rate is reflected in rates (with the refund occurring over one year), and refund excess accumulated deferred income taxes over two years. Entergy Louisiana believes that its formula rate plan settlement, approved in April 2018 and discussed below, addresses fully its obligations regarding the Tax Act and will seek such confirmation in its comments to the proposed rule. In the formula rate plan settlement approved by the LPSC in April 2018 the parties agreed that Entergy Louisiana will return to customers one-half of its eligible unprotected excess deferred income taxes from May 2018 through December 2018 and return to customers the other half from January 2019 through August 2022. In addition, the parties agreed that in order to flow back to customers certain other tax benefits created by the Tax Act, Entergy Louisiana would establish a regulatory liability effective January 1, 2018 in the amount of $9.1 million per month until new base rates under the formula rate plan are established, and this regulatory liability will be returned to customers over the next formula rate plan rate-effective period. Entergy Louisiana recorded a $55 million regulatory liability thus far in 2018 pursuant to this provision of the settlement. The LPSC staff and intervenors in the settlement reserved the right to obtain data from Entergy Louisiana to confirm the determination of excess accumulated deferred income taxes resulting from the Tax Act and analysis thereof as part of the formula rate plan review proceeding for the 2017 test year filing, which, as discussed below, Entergy Louisiana filed in June 2018. Entergy Mississippi As discussed in the Form 10-K, after enactment of the Tax Act the MPSC ordered utilities, including Entergy Mississippi, that operate under a formula rate plan to file a description by February 26, 2018, of how the Tax Act will be reflected in the formula rate plan under which the utility operates. Entergy Mississippi's plan, as filed with the MPSC on February 26, 2018, included a request to reflect the changes related to the Tax Act in the 2018 formula rate plan filing. Entergy Mississippi filed its 2018 formula rate plan on March 15, 2018 and included a proposal to return all of its unprotected excess accumulated deferred income taxes to customers through rates or in exchange for other assets, or a combination of both, by the end of 2018. Also, in March 2018 the MPSC issued a subsequent order in its generic tax reform docket ordering utilities, including Entergy Mississippi, to explain the implementation of the utilities tax adjustment clause, or, in the alternative, why the tax adjustment clause is inapplicable; submit an analysis of the ratemaking effects of the Tax Act on current and future revenue requirements for rate schedules that include a gross-up for federal taxes; and make appropriate accounting entries to recognize the removal of excess deferred taxes from the balance of the utility’s accumulated deferred income tax account, or, in the alternative, explain why recording such entries is not appropriate. In April 2018, Entergy Mississippi filed its response to the MPSC stating that the tax adjustment clauses in its base rates are properly implemented through its formula rate plan. Entergy Mississippi also provided analysis of the ratemaking effects of the Tax Act. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into and filed a joint stipulation in Entergy Mississippi’s formula rate plan filing that addressed Entergy Mississippi’s 2018 formula rate plan evaluation report and the ratemaking effects of the Tax Act. In June 2018 the MPSC approved the stipulation, which provides for incorporating the reduction of the statutory federal income tax rate through the formula rate plan and the flow-back of protected excess accumulated deferred income taxes over approximately 40 years through the formula rate plan. The stipulation also provides for the offset of unprotected excess accumulated deferred income taxes of $127.2 million against net utility plant and $2.2 million against other regulatory assets, and the return to customers of the remaining balance of unprotected excess accumulated deferred income taxes as recovery of a portion of fuel oil inventory and customer bill credits over a 3-month period from July 2018 through September 2018, with any true-up to be reflected in the November 2018 power management rider submittal. Entergy Mississippi recorded the reduction against net utility plant and other regulatory assets in June 2018. Entergy New Orleans As discussed in the Form 10-K, after enactment of the Tax Act the City Council passed a resolution ordering Entergy New Orleans to, effective January 1, 2018, record deferred regulatory liabilities to account for the Tax Act’s effect on Entergy New Orleans’s revenue requirement and to make a filing by mid-March 2018 regarding the Tax Act’s effects on Entergy New Orleans’s operating income and rate base and potential mechanisms for customers to receive benefits of the Tax Act. The City Council’s resolution also directed Entergy New Orleans to request that Entergy Services file with the FERC for revisions of the Unit Power Sales Agreement and MSS-4 replacement tariffs to address the return of excess accumulated deferred income taxes. Entergy has submitted filings of this type to the FERC. In March 2018, Entergy New Orleans filed its response to that resolution stating that the Tax Act reduced income tax expense from what is presently reflected in rates by approximately $8.2 million annually for electric operations and by approximately $1.3 million annually for gas operations. In the filing, Entergy New Orleans proposed to return to customers from June 2018 through August 2019 the benefits of the reduction in income tax expense and its unprotected excess accumulated deferred income taxes through a combination of bill credits and investments in energy efficiency programs, grid modernization, and Smart City projects. Entergy New Orleans submitted supplemental information in April 2018 and May 2018. Shortly thereafter, Entergy New Orleans and the City Council’s advisors reached an agreement in principle that provides for benefits that will be realized by Entergy New Orleans customers through bill credits starting in July 2018 and offsets to future investments in energy efficiency programs, grid modernization, and Smart City projects, as well as additional benefits related to the filings made at FERC. The agreement in principle was approved by the City Council in June 2018. Entergy Texas As discussed below, in May 2018, Entergy Texas filed its 2018 base rate case with the PUCT. Entergy Texas’s proposed rates and revenues reflect the inclusion of the federal income tax reductions due to the Tax Act. In the rate case Entergy Texas proposed to return its unprotected excess accumulated deferred income taxes to customers over a two-year period following PUCT approval. System Energy In a filing made with the FERC in March 2018, Entergy proposed revisions to the Unit Power Sales Agreement, among other agreements, to reflect the effects of the Tax Act. In the filing System Energy proposed to return all of its unprotected excess accumulated deferred income taxes to its customers by the end of 2018. In May 2018 the FERC accepted System Energy’s proposed tax revisions with an effective date of June 1, 2018, subject to refund and the outcome of settlement and hearing procedures. Settlement discussions are ongoing. Fuel and purchased power cost recovery Entergy Arkansas Energy Cost Recovery Rider In March 2018, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.01547 per kWh to $0.01882 per kWh. The Arkansas Attorney General filed a response to Entergy Arkansas’s annual redetermination filing requesting that the APSC suspend the proposed tariff to investigate the amount of the redetermination or, alternatively, to allow recovery subject to refund. Among the reasons the Arkansas Attorney General cited for suspension were questions pertaining to how Entergy Arkansas forecasted sales and potential implications of the Tax Act. Entergy Arkansas replied to the Arkansas Attorney General’s filing and stated that, to the extent there are questions pertaining to its load forecasting or the operation of the energy cost recovery rider, those issues exceed the scope of the instant rate redetermination. Entergy Arkansas also stated that potential effects of the Tax Act are appropriately considered in the APSC’s separate proceeding looking at potential implications of the new tax law. The APSC general staff filed a reply to the Arkansas Attorney General’s filing and agreed that Entergy Arkansas’s filing complied with the terms of the energy cost recovery rider. In April 2018 the APSC issued an order declining to suspend Entergy Arkansas’s energy cost recovery rider rate and declining to require further investigation at this time of the issues suggested by the Attorney General in the proceeding. The redetermined rate became effective with the first billing cycle of April 2018. Discovery continues to be conducted by the parties with respect to the redetermined rate. Entergy Mississippi Mississippi Attorney General Complaint As discussed in the Form 10-K the Mississippi Attorney General filed a complaint in state court in December 2008 against Entergy Corporation, Entergy Mississippi, Entergy Services, and Entergy Power alleging, among other things, violations of Mississippi statutes, fraud, and breach of good faith and fair dealing, and requesting an accounting and restitution. The defendants have denied the allegations. In June 2017 the District Court issued a case management order setting a trial date in November 2018. Discovery ended in May 2018. In June 2018, Entergy filed motions for summary judgment, which are currently pending before the District Court. In July 2018 the Mississippi Attorney General filed briefs opposing the summary judgment. Entergy Texas As discussed in the Form 10-K, in July 2015 certain parties filed briefs in an open PUCT proceeding asserting that Entergy Texas should refund to retail customers an additional $10.9 million in bandwidth remedy payments Entergy Texas received related to calendar year 2006 production costs. In October 2015 an ALJ issued a proposal for decision recommending that the additional bandwidth remedy payments be refunded to retail customers. In January 2016 the PUCT issued its order affirming the ALJ’s recommendation, and Entergy Texas filed a motion for rehearing of the PUCT’s decision, which the PUCT denied. In March 2016, Entergy Texas filed a complaint in Federal District Court for the Western District of Texas and a petition in the Travis County (State) District Court appealing the PUCT’s decision. The pending appeals did not stay the PUCT’s decision, and Entergy Texas refunded to customers the $10.9 million over a four-month period beginning with the first billing cycle of July 2016. The federal appeal of the PUCT’s January 2016 decision was heard in December 2016, and the Federal District Court granted Entergy Texas’s requested relief. In January 2017 the PUCT and an intervenor filed petitions for appeal of the Federal District Court ruling to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held before the Fifth Circuit in February 2018. In April 2018 the Fifth Circuit reversed the decision of the Federal District Court, reinstating the original PUCT decision. The State District Court appeal of the PUCT’s January 2016 decision remains pending. In December 2017, Entergy Texas filed an application for a fuel refund of approximately $30.5 million for the months of May 2017 through October 2017. Also in December 2017, the PUCT’s ALJ approved the refund on an interim basis. For most customers, the refunds flowed through bills beginning January 2018 and continued through March 2018. The fuel refund was approved by the PUCT in March 2018. Retail Rate Proceedings See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that information. Filings with the APSC (Entergy Arkansas) 2018 Formula Rate Plan Filing In July 2018, Entergy Arkansas filed with the APSC its 2018 formula rate plan filing to set its formula rate for the 2019 calendar year. The filing shows Entergy Arkansas’s projected earned return on common equity for the twelve months ended December 31, 2019 test period to be below the formula rate plan bandwidth. Additionally, the filing includes the first netting adjustment under the current formula rate plan for the historical test year 2017, which is a comparison of projected costs and sales approved in the 2016 formula rate plan filing to actual 2017 costs and sales data. The filing includes a projected $73.4 million revenue deficiency for 2019 and a $95.6 million revenue deficiency for the 2017 historical test year, for a total revenue requirement of $169 million for this filing. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Because Entergy Arkansas’s revenue requirement in this filing exceeds the constraint, the resulting increase is limited to four percent of total revenue, which is $65.4 million . Entergy Arkansas recommended that the parties to the proceeding support a hearing date in November 2018 and requested that the APSC issue an order approving the proposed formula rate plan adjustment in December 2018, with the proposed formula rate plan adjustment effective with the first billing cycle of January 2019. Internal Restructuring As discussed in the Form 10-K, in November 2017, Entergy Arkansas filed an application with the APSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Arkansas to a new entity, which would ultimately be owned by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the APSC, the FERC, and the NRC. Entergy Arkansas also filed a notice with the Missouri Public Service Commission in December 2017 out of an abundance of caution, although Entergy Arkansas does not serve any retail customers in Missouri. In April 2018 the Missouri Public Service Commission approved Entergy Arkansas’s filing. In July 2018, Entergy Arkansas filed a settlement, reached by all parties in the APSC proceeding, resolving all issues and seeking an APSC decision no later than September 1, 2018. If the appropriate approvals are obtained, Entergy Arkansas expects the restructuring will be consummated on or before December 1, 2018. Filings with the LPSC (Entergy Louisiana) Retail Rates - Electric 2016 Formula Rate Plan Filing As discussed in the Form 10-K, in May 2017, Entergy Louisiana filed its formula rate plan evaluation report for its 2016 calendar year operations. Rates reflecting the adjustments included in the formula rate plan evaluation report were implemented with the first billing cycle of September 2017, subject to refund. In September 2017 the LPSC issued its report indicating that no changes to Entergy Louisiana’s original formula rate plan evaluation report were required but reserved for several issues, including Entergy Louisiana’s September 2017 update to its formula rate plan evaluation report. In July 2018, Entergy Louisiana and the LPSC staff filed an unopposed joint report setting forth a correction to the annualization calculation, the effect of which was a net $3.5 million revenue requirement reduction, and indicating that there are no outstanding issues with the 2016 formula rate plan report, the supplemental report, or the interim updates. The LPSC voted to accept and approve the unopposed joint report in August 2018. Formula Rate Plan Extension Request In August 2017, Entergy Louisiana filed a request with the LPSC seeking to extend its formula rate plan for three years (2017-2019) with limited modifications of its terms. Those modifications include: a one-time resetting of base rates to the midpoint of the band at Entergy Louisiana’s authorized return on equity of 9.95% for the 2017 test year; narrowing of the formula rate plan bandwidth from a total of 160 basis points to 80 basis points; and a forward-looking mechanism that would allow Entergy Louisiana to recover certain transmission-related costs contemporaneously with when those projects begin delivering benefits to customers. Several parties intervened in the proceeding and all parties participated in settlement discussions. In April 2018 the LPSC approved an unopposed joint motion filed by Entergy Louisiana and the LPSC staff that settles the matter. The settlement extends the formula rate plan for three years, providing for rates through at least August 2021. In addition to retaining the major features of the traditional formula rate plan, substantive features of the extended formula rate plan include: • a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year and for the St. Charles Power Station when it enters commercial operation; • a 9.8% target earned return on common equity for the 2018 and 2019 test years; • narrowing of the common equity bandwidth to plus or minus 60 basis points around the target earned return on common equity; • a cap on potential revenue increase of $35 million for the 2018 evaluation period, and $70 million for the cumulative 2018 and 2019 evaluation periods, on formula rate plan cost of service rate increases (the cap excludes rate changes associated with the transmission recovery mechanism described below and rate changes associated with additional capacity); • a framework for the flow back of certain tax benefits created by the Tax Act to customers, as described in “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above; and • a transmission recovery mechanism providing for the opportunity to recover certain transmission related expenditures in excess of $100 million annually for projects placed in service up to one month prior to rate change outside of sharing that is designed to operate in a manner similar to the additional capacity mechanism. 2017 Formula Rate Plan Filing In June 2018, Entergy Louisiana filed its formula rate plan evaluation report for its 2017 calendar year operations. As stated above under “Formula Rate Plan Extension Request” for the 2017 test year there will be a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year. As such, base rider formula rate plan revenue is to be adjusted prospectively to increase or decrease the earned return on equity fully to the approved cost of equity of 9.95% . The 2017 test year evaluation report produced an earned return on equity of 8.16% , due in large part to revenue-neutral realignments to other recovery mechanisms. Without these realignments, the evaluation report produces an earned return on equity of 9.88% and a resulting base rider formula rate plan revenue increase of $4.8 million . Excluding the Tax Act credits provided for by the tax reform adjustment mechanisms, total formula rate plan revenues will further increase by a total of $98 million as a result of the evaluation report due to adjustments to the additional capacity and MISO cost recovery mechanisms of the formula rate plan, and implementation of the transmission recovery mechanism. Results of the 2017 evaluation report filing will be implemented with the September 2018 billing month. Entergy Louisiana also included in its filing a presentation of an initial proposal to combine the legacy Entergy Louisiana and legacy Entergy Gulf States Louisiana residential rates, which combination would be accomplished on a revenue neutral basis intended not to affect the rates of other customer classes. Union Power Station and Deactivation or Retirement Decisions for Entergy Louisiana Plants As discussed in the Form 10-K, as a term of the LPSC-approved settlement authorizing the purchase of Power Blocks 3 and 4 of the Union Power Station, Entergy Louisiana agreed to make a filing with the LPSC to review its decisions to deactivate Ninemile 3 and Willow Glen 2 and 4 and its decision to retire Little Gypsy 1. In January 2016, Entergy Louisiana made its compliance filing with the LPSC. Entergy Louisiana, LPSC staff, and intervenors participated in a technical conference in March 2016 where Entergy Louisiana presented information on its deactivation/retirement decisions for these four units in addition to information on the current deactivation decisions for the ten-year planning horizon. No party contests the prudence of the decision to deactivate Willow Glen 2 and 4 or suggests reactivation of these units; however, issues have been raised related to Entergy Louisiana’s decision to give up its transmission service rights in MISO for Willow Glen 2 and 4 rather than placing the units into suspended status for the three-year term permitted by MISO. In March 2018 the LPSC adopted the ALJ’s recommended order finding that Entergy Louisiana did not demonstrate that its decision to permanently surrender transmission rights for the mothballed (not retired) Willow Glen 2 and 4 units was reasonable and that Entergy Louisiana should hold customers harmless from increased transmission expenses should those units be reactivated. Because no party or the LPSC suggested that Willow Glen 2 and 4 should be reactivated and because the cost to return those units to service far exceeds the revenue the units were expected to generate in MISO, Entergy Louisiana retired Willow Glen 2 and 4 in March 2018. Entergy Louisiana submitted a compliance filing regarding retirement of Willow Glen 2 and 4, and the LPSC closed the proceeding. Retail Rates - Gas 2017 Rate Stabilization Plan Filing In January 2018, Entergy Louisiana filed with the LPSC its gas rate stabilization plan for the test year ended September 30, 2017. The filing of the evaluation report for the test year 2017 reflected an earned return on common equity of 9.06% . This earned return is below the earnings sharing band of the rate stabilization plan and results in a rate increase of $0.1 million . Due to the enactment of the Tax Act in late-December 2017, Entergy Louisiana did not have adequate time to reflect the effects of this tax legislation in the rate stabilization plan. In April 2018 Entergy Louisiana filed a supplemental evaluation report for the test year ended September 2017, reflecting the effects of the Tax Act, including a proposal to use the unprotected excess accumulated deferred income taxes to offset storm restoration deferred operation and maintenance costs incurred by Entergy Louisiana in connection with the August 2016 flooding disaster in its gas service area. The supplemental filing reflects an earned return on common equity of 10.79% . As-filed rates from the supplemental filing were implemented, subject to refund, with customers receiving a cost reduction of approximately $0.7 million effective with bills rendered on and after the first billing cycle of May 2018, as well as a $0.2 million reduction in the gas infrastructure rider effective with bills rendered on and after the first billing cycle of July 2018. The proceeding is currently in its discovery phase. A procedural schedule has not been established. Filings with the MPSC (Entergy Mississippi) Formula Rate Plan In March 2018, Entergy Mississippi submitted its formula rate plan 2018 test year filing and 2017 look-back filing showing Entergy Mississippi’s earned return for the historical 2017 calendar year and projected earned return for the 2018 calendar year, in large part as a result of the lower federal corporate income tax rate effective in 2018, to be within the formula rate plan bandwidth, resulting in no change in rates. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a stipulation that confirmed that Entergy Mississippi’s earned returns for both the 2017 look-back filing and 2018 test year were within the respective formula rate plan bandwidths. In June 2018 the MPSC approved the stipulation, which resulted in no change in rates. See “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above for additional discussion regarding the proposed treatment of the effects of the lower federal corporate income tax rate. Internal Restructuring In March 2018, Entergy Mississippi filed an application with the MPSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Mississippi to a new entity, which would ultimately be held by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the MPSC, the FERC, and the NRC. If the MPSC approves the restructuring by August 2018 and the restructuring closes on or before December 1, 2018, Entergy Mississippi proposed in its application to credit retail customers $27 million over six years, beginning in 2019. If the MPSC, the FERC, and the NRC approvals are obtained, Entergy Mississippi expects the restructuring will be consummated on or before December 1, 2018. It is currently contemplated that Entergy Mississippi would undertake a multi-step restructuring, which would include the following: • Entergy Mississippi would redeem its outstanding preferred stock, at the aggregate redemption price of approximately $21.2 million , including call premiums, plus accumulated and unpaid dividends, if any. • Entergy Mississippi would convert from a Mississippi corporation to a Texas corporation. • Under the Texas Business Organizations Code (TXBOC), Entergy Mississippi will allocate substantially all of its assets to a new subsidiary, Entergy Mississippi Power and Light, LLC, a Texas limited liability company (Entergy Mississippi Power and Light), and Entergy Mississippi Power and Light will assume substantially all of the liabilities of Entergy Mississippi, in a transaction regarded as a merger under the TXBOC. Entergy Mississippi will remain in existence and hold the membership interests in Entergy Mississippi Power and Light. • Entergy Mississippi will contribute the membership interests in Entergy Mississippi Power and Light to an affiliate (Entergy Utility Holding Company, LLC, a Texas limited liability company and subsidiary of Entergy Corporation). As a result of the contribution, Entergy Mississippi Power and Light will be a wholly-owned subsidiary of Entergy Utility Holding Company, LLC. • Entergy Mississippi will change its name to Entergy Utility Enterprises, Inc., and Entergy Mississippi Power and Light will then change its name to Entergy Mississippi, LLC. Upon the completion of the restructuring, Entergy Mississippi, LLC will hold substantially all of the assets, and will have assumed substantially all of the liabilities, of Entergy Mississippi. Entergy Mississippi may modify or supplement the steps to be taken to effectuate the restructuring. Filings with the City Council (Entergy New Orleans) Energy Smart Programs As discussed in the Form 10-K, in September 2017, Entergy New Orleans filed a supplemental plan and proposed several options for an interim cost recovery mechanism necessary to recover program costs during the period between when existing funds directed to Energy Smart programs were depleted and when new rates from the anticipated 2018 combined rate case, which will include a cost recovery mechanism for Energy Smart funding, take effect (estimated to be August 2019). In December 2017 the City Council approved an energy efficiency cost recovery rider as an interim funding mechanism for Energy Smart, subject to verification that no additional funding sources exist. In June 2018 the City Council also approved a resolution recommending that Entergy New Orleans allocate approximately $13.5 million of benefits resulting from the Tax Act to Energy Smart. Entergy New Orleans is seeking approval of a permanent and stable source of funding for Energy Smart as part of its base rate case filed |
Entergy New Orleans [Member] | |
Rate and Regulatory Matters | RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Regulatory Assets and Regulatory Liabilities See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion. Regulatory activity regarding the Tax Cuts and Jobs Act See the “ Other Tax Matters - Tax Cuts and Jobs Act ” section in Note 3 to the financial statements in the Form 10-K for discussion of the effects of the enactment in December 2017 of the Tax Cuts and Jobs Act (the Tax Act), including its effects on Entergy’s and the Registrant Subsidiaries’ regulatory asset/liability for income taxes. After assessing the activity described in more detail below regarding the status of the proposals the Registrant Subsidiaries made to their regulators for the return of unprotected excess accumulated deferred income taxes to customers, in 2018, Entergy and each of the Registrant Subsidiaries are reclassifying from the regulatory liability for income taxes to current liabilities the portion of their unprotected excess accumulated deferred income taxes that they expect to return to customers over the next twelve months. Entergy Arkansas See the Form 10-K for a discussion of the activity of the APSC and Entergy Arkansas after enactment of the Tax Act in December 2017. The APSC granted Entergy Arkansas’s request for clarification regarding the APSC’s order issued after enactment of the Tax Act. The APSC stated that its order was not a final determination and that the APSC had made no decision at that time on the appropriate final accounting or ratemaking treatment of the amounts in question. A hearing was held in May 2018 regarding the APSC’s inquiries into the effects of the Tax Act, including Entergy Arkansas’s proposal to utilize its existing formula rate plan rider for its customers to realize the remaining benefits of the Tax Act. In July 2018 the APSC issued an order agreeing with Entergy Arkansas’s proposal to have the effects on current income tax expense flow through Entergy Arkansas’s formula rate plan rider and its treatment of protected and unprotected excess accumulated deferred income taxes. The APSC also directed Entergy Arkansas to submit in the tax adjustment rider proceeding, discussed below, the adjustments to all other riders affected by the Tax Act and to include an amendment for a true up mechanism where a rider affected by the Tax Act does not already contain a true up mechanism. Consistent with its previously stated intent to return unprotected excess accumulated deferred income taxes to customers as expeditiously as possible, Entergy Arkansas initiated a tariff proceeding in February 2018 proposing to establish a tax adjustment rider to provide retail customers with certain tax benefits associated with the Tax Act. For the residential customer class, the unprotected excess accumulated deferred income taxes will be returned to customers over a 21-month period from April 2018 through December 2019. For all other customer classes, the unprotected excess accumulated deferred income taxes will be returned to customers over a 9-month period from April 2018 through December 2018. A true-up provision also was included, with any over- or under-returned unprotected excess accumulated deferred income taxes to be credited or billed to customers during the billing month of January 2020, with any residual amounts of over- or under-returned unprotected excess accumulated deferred income taxes to be flowed through Entergy Arkansas’s energy cost recovery rider. In March 2018 the APSC approved the tax adjustment rider effective with the first billing cycle of April 2018. Entergy Louisiana See the Form 10-K for a discussion of the activity of the LPSC and Entergy Louisiana after enactment of the Tax Act in December 2017. In July 2018 the LPSC issued a proposed rule requiring utilities to adjust rates prospectively to reflect the lower tax rate (either through a formula rate plan or rate case), refund excess tax expense collected since January 1, 2018 until the lower tax rate is reflected in rates (with the refund occurring over one year), and refund excess accumulated deferred income taxes over two years. Entergy Louisiana believes that its formula rate plan settlement, approved in April 2018 and discussed below, addresses fully its obligations regarding the Tax Act and will seek such confirmation in its comments to the proposed rule. In the formula rate plan settlement approved by the LPSC in April 2018 the parties agreed that Entergy Louisiana will return to customers one-half of its eligible unprotected excess deferred income taxes from May 2018 through December 2018 and return to customers the other half from January 2019 through August 2022. In addition, the parties agreed that in order to flow back to customers certain other tax benefits created by the Tax Act, Entergy Louisiana would establish a regulatory liability effective January 1, 2018 in the amount of $9.1 million per month until new base rates under the formula rate plan are established, and this regulatory liability will be returned to customers over the next formula rate plan rate-effective period. Entergy Louisiana recorded a $55 million regulatory liability thus far in 2018 pursuant to this provision of the settlement. The LPSC staff and intervenors in the settlement reserved the right to obtain data from Entergy Louisiana to confirm the determination of excess accumulated deferred income taxes resulting from the Tax Act and analysis thereof as part of the formula rate plan review proceeding for the 2017 test year filing, which, as discussed below, Entergy Louisiana filed in June 2018. Entergy Mississippi As discussed in the Form 10-K, after enactment of the Tax Act the MPSC ordered utilities, including Entergy Mississippi, that operate under a formula rate plan to file a description by February 26, 2018, of how the Tax Act will be reflected in the formula rate plan under which the utility operates. Entergy Mississippi's plan, as filed with the MPSC on February 26, 2018, included a request to reflect the changes related to the Tax Act in the 2018 formula rate plan filing. Entergy Mississippi filed its 2018 formula rate plan on March 15, 2018 and included a proposal to return all of its unprotected excess accumulated deferred income taxes to customers through rates or in exchange for other assets, or a combination of both, by the end of 2018. Also, in March 2018 the MPSC issued a subsequent order in its generic tax reform docket ordering utilities, including Entergy Mississippi, to explain the implementation of the utilities tax adjustment clause, or, in the alternative, why the tax adjustment clause is inapplicable; submit an analysis of the ratemaking effects of the Tax Act on current and future revenue requirements for rate schedules that include a gross-up for federal taxes; and make appropriate accounting entries to recognize the removal of excess deferred taxes from the balance of the utility’s accumulated deferred income tax account, or, in the alternative, explain why recording such entries is not appropriate. In April 2018, Entergy Mississippi filed its response to the MPSC stating that the tax adjustment clauses in its base rates are properly implemented through its formula rate plan. Entergy Mississippi also provided analysis of the ratemaking effects of the Tax Act. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into and filed a joint stipulation in Entergy Mississippi’s formula rate plan filing that addressed Entergy Mississippi’s 2018 formula rate plan evaluation report and the ratemaking effects of the Tax Act. In June 2018 the MPSC approved the stipulation, which provides for incorporating the reduction of the statutory federal income tax rate through the formula rate plan and the flow-back of protected excess accumulated deferred income taxes over approximately 40 years through the formula rate plan. The stipulation also provides for the offset of unprotected excess accumulated deferred income taxes of $127.2 million against net utility plant and $2.2 million against other regulatory assets, and the return to customers of the remaining balance of unprotected excess accumulated deferred income taxes as recovery of a portion of fuel oil inventory and customer bill credits over a 3-month period from July 2018 through September 2018, with any true-up to be reflected in the November 2018 power management rider submittal. Entergy Mississippi recorded the reduction against net utility plant and other regulatory assets in June 2018. Entergy New Orleans As discussed in the Form 10-K, after enactment of the Tax Act the City Council passed a resolution ordering Entergy New Orleans to, effective January 1, 2018, record deferred regulatory liabilities to account for the Tax Act’s effect on Entergy New Orleans’s revenue requirement and to make a filing by mid-March 2018 regarding the Tax Act’s effects on Entergy New Orleans’s operating income and rate base and potential mechanisms for customers to receive benefits of the Tax Act. The City Council’s resolution also directed Entergy New Orleans to request that Entergy Services file with the FERC for revisions of the Unit Power Sales Agreement and MSS-4 replacement tariffs to address the return of excess accumulated deferred income taxes. Entergy has submitted filings of this type to the FERC. In March 2018, Entergy New Orleans filed its response to that resolution stating that the Tax Act reduced income tax expense from what is presently reflected in rates by approximately $8.2 million annually for electric operations and by approximately $1.3 million annually for gas operations. In the filing, Entergy New Orleans proposed to return to customers from June 2018 through August 2019 the benefits of the reduction in income tax expense and its unprotected excess accumulated deferred income taxes through a combination of bill credits and investments in energy efficiency programs, grid modernization, and Smart City projects. Entergy New Orleans submitted supplemental information in April 2018 and May 2018. Shortly thereafter, Entergy New Orleans and the City Council’s advisors reached an agreement in principle that provides for benefits that will be realized by Entergy New Orleans customers through bill credits starting in July 2018 and offsets to future investments in energy efficiency programs, grid modernization, and Smart City projects, as well as additional benefits related to the filings made at FERC. The agreement in principle was approved by the City Council in June 2018. Entergy Texas As discussed below, in May 2018, Entergy Texas filed its 2018 base rate case with the PUCT. Entergy Texas’s proposed rates and revenues reflect the inclusion of the federal income tax reductions due to the Tax Act. In the rate case Entergy Texas proposed to return its unprotected excess accumulated deferred income taxes to customers over a two-year period following PUCT approval. System Energy In a filing made with the FERC in March 2018, Entergy proposed revisions to the Unit Power Sales Agreement, among other agreements, to reflect the effects of the Tax Act. In the filing System Energy proposed to return all of its unprotected excess accumulated deferred income taxes to its customers by the end of 2018. In May 2018 the FERC accepted System Energy’s proposed tax revisions with an effective date of June 1, 2018, subject to refund and the outcome of settlement and hearing procedures. Settlement discussions are ongoing. Fuel and purchased power cost recovery Entergy Arkansas Energy Cost Recovery Rider In March 2018, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.01547 per kWh to $0.01882 per kWh. The Arkansas Attorney General filed a response to Entergy Arkansas’s annual redetermination filing requesting that the APSC suspend the proposed tariff to investigate the amount of the redetermination or, alternatively, to allow recovery subject to refund. Among the reasons the Arkansas Attorney General cited for suspension were questions pertaining to how Entergy Arkansas forecasted sales and potential implications of the Tax Act. Entergy Arkansas replied to the Arkansas Attorney General’s filing and stated that, to the extent there are questions pertaining to its load forecasting or the operation of the energy cost recovery rider, those issues exceed the scope of the instant rate redetermination. Entergy Arkansas also stated that potential effects of the Tax Act are appropriately considered in the APSC’s separate proceeding looking at potential implications of the new tax law. The APSC general staff filed a reply to the Arkansas Attorney General’s filing and agreed that Entergy Arkansas’s filing complied with the terms of the energy cost recovery rider. In April 2018 the APSC issued an order declining to suspend Entergy Arkansas’s energy cost recovery rider rate and declining to require further investigation at this time of the issues suggested by the Attorney General in the proceeding. The redetermined rate became effective with the first billing cycle of April 2018. Discovery continues to be conducted by the parties with respect to the redetermined rate. Entergy Mississippi Mississippi Attorney General Complaint As discussed in the Form 10-K the Mississippi Attorney General filed a complaint in state court in December 2008 against Entergy Corporation, Entergy Mississippi, Entergy Services, and Entergy Power alleging, among other things, violations of Mississippi statutes, fraud, and breach of good faith and fair dealing, and requesting an accounting and restitution. The defendants have denied the allegations. In June 2017 the District Court issued a case management order setting a trial date in November 2018. Discovery ended in May 2018. In June 2018, Entergy filed motions for summary judgment, which are currently pending before the District Court. In July 2018 the Mississippi Attorney General filed briefs opposing the summary judgment. Entergy Texas As discussed in the Form 10-K, in July 2015 certain parties filed briefs in an open PUCT proceeding asserting that Entergy Texas should refund to retail customers an additional $10.9 million in bandwidth remedy payments Entergy Texas received related to calendar year 2006 production costs. In October 2015 an ALJ issued a proposal for decision recommending that the additional bandwidth remedy payments be refunded to retail customers. In January 2016 the PUCT issued its order affirming the ALJ’s recommendation, and Entergy Texas filed a motion for rehearing of the PUCT’s decision, which the PUCT denied. In March 2016, Entergy Texas filed a complaint in Federal District Court for the Western District of Texas and a petition in the Travis County (State) District Court appealing the PUCT’s decision. The pending appeals did not stay the PUCT’s decision, and Entergy Texas refunded to customers the $10.9 million over a four-month period beginning with the first billing cycle of July 2016. The federal appeal of the PUCT’s January 2016 decision was heard in December 2016, and the Federal District Court granted Entergy Texas’s requested relief. In January 2017 the PUCT and an intervenor filed petitions for appeal of the Federal District Court ruling to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held before the Fifth Circuit in February 2018. In April 2018 the Fifth Circuit reversed the decision of the Federal District Court, reinstating the original PUCT decision. The State District Court appeal of the PUCT’s January 2016 decision remains pending. In December 2017, Entergy Texas filed an application for a fuel refund of approximately $30.5 million for the months of May 2017 through October 2017. Also in December 2017, the PUCT’s ALJ approved the refund on an interim basis. For most customers, the refunds flowed through bills beginning January 2018 and continued through March 2018. The fuel refund was approved by the PUCT in March 2018. Retail Rate Proceedings See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that information. Filings with the APSC (Entergy Arkansas) 2018 Formula Rate Plan Filing In July 2018, Entergy Arkansas filed with the APSC its 2018 formula rate plan filing to set its formula rate for the 2019 calendar year. The filing shows Entergy Arkansas’s projected earned return on common equity for the twelve months ended December 31, 2019 test period to be below the formula rate plan bandwidth. Additionally, the filing includes the first netting adjustment under the current formula rate plan for the historical test year 2017, which is a comparison of projected costs and sales approved in the 2016 formula rate plan filing to actual 2017 costs and sales data. The filing includes a projected $73.4 million revenue deficiency for 2019 and a $95.6 million revenue deficiency for the 2017 historical test year, for a total revenue requirement of $169 million for this filing. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Because Entergy Arkansas’s revenue requirement in this filing exceeds the constraint, the resulting increase is limited to four percent of total revenue, which is $65.4 million . Entergy Arkansas recommended that the parties to the proceeding support a hearing date in November 2018 and requested that the APSC issue an order approving the proposed formula rate plan adjustment in December 2018, with the proposed formula rate plan adjustment effective with the first billing cycle of January 2019. Internal Restructuring As discussed in the Form 10-K, in November 2017, Entergy Arkansas filed an application with the APSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Arkansas to a new entity, which would ultimately be owned by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the APSC, the FERC, and the NRC. Entergy Arkansas also filed a notice with the Missouri Public Service Commission in December 2017 out of an abundance of caution, although Entergy Arkansas does not serve any retail customers in Missouri. In April 2018 the Missouri Public Service Commission approved Entergy Arkansas’s filing. In July 2018, Entergy Arkansas filed a settlement, reached by all parties in the APSC proceeding, resolving all issues and seeking an APSC decision no later than September 1, 2018. If the appropriate approvals are obtained, Entergy Arkansas expects the restructuring will be consummated on or before December 1, 2018. Filings with the LPSC (Entergy Louisiana) Retail Rates - Electric 2016 Formula Rate Plan Filing As discussed in the Form 10-K, in May 2017, Entergy Louisiana filed its formula rate plan evaluation report for its 2016 calendar year operations. Rates reflecting the adjustments included in the formula rate plan evaluation report were implemented with the first billing cycle of September 2017, subject to refund. In September 2017 the LPSC issued its report indicating that no changes to Entergy Louisiana’s original formula rate plan evaluation report were required but reserved for several issues, including Entergy Louisiana’s September 2017 update to its formula rate plan evaluation report. In July 2018, Entergy Louisiana and the LPSC staff filed an unopposed joint report setting forth a correction to the annualization calculation, the effect of which was a net $3.5 million revenue requirement reduction, and indicating that there are no outstanding issues with the 2016 formula rate plan report, the supplemental report, or the interim updates. The LPSC voted to accept and approve the unopposed joint report in August 2018. Formula Rate Plan Extension Request In August 2017, Entergy Louisiana filed a request with the LPSC seeking to extend its formula rate plan for three years (2017-2019) with limited modifications of its terms. Those modifications include: a one-time resetting of base rates to the midpoint of the band at Entergy Louisiana’s authorized return on equity of 9.95% for the 2017 test year; narrowing of the formula rate plan bandwidth from a total of 160 basis points to 80 basis points; and a forward-looking mechanism that would allow Entergy Louisiana to recover certain transmission-related costs contemporaneously with when those projects begin delivering benefits to customers. Several parties intervened in the proceeding and all parties participated in settlement discussions. In April 2018 the LPSC approved an unopposed joint motion filed by Entergy Louisiana and the LPSC staff that settles the matter. The settlement extends the formula rate plan for three years, providing for rates through at least August 2021. In addition to retaining the major features of the traditional formula rate plan, substantive features of the extended formula rate plan include: • a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year and for the St. Charles Power Station when it enters commercial operation; • a 9.8% target earned return on common equity for the 2018 and 2019 test years; • narrowing of the common equity bandwidth to plus or minus 60 basis points around the target earned return on common equity; • a cap on potential revenue increase of $35 million for the 2018 evaluation period, and $70 million for the cumulative 2018 and 2019 evaluation periods, on formula rate plan cost of service rate increases (the cap excludes rate changes associated with the transmission recovery mechanism described below and rate changes associated with additional capacity); • a framework for the flow back of certain tax benefits created by the Tax Act to customers, as described in “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above; and • a transmission recovery mechanism providing for the opportunity to recover certain transmission related expenditures in excess of $100 million annually for projects placed in service up to one month prior to rate change outside of sharing that is designed to operate in a manner similar to the additional capacity mechanism. 2017 Formula Rate Plan Filing In June 2018, Entergy Louisiana filed its formula rate plan evaluation report for its 2017 calendar year operations. As stated above under “Formula Rate Plan Extension Request” for the 2017 test year there will be a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year. As such, base rider formula rate plan revenue is to be adjusted prospectively to increase or decrease the earned return on equity fully to the approved cost of equity of 9.95% . The 2017 test year evaluation report produced an earned return on equity of 8.16% , due in large part to revenue-neutral realignments to other recovery mechanisms. Without these realignments, the evaluation report produces an earned return on equity of 9.88% and a resulting base rider formula rate plan revenue increase of $4.8 million . Excluding the Tax Act credits provided for by the tax reform adjustment mechanisms, total formula rate plan revenues will further increase by a total of $98 million as a result of the evaluation report due to adjustments to the additional capacity and MISO cost recovery mechanisms of the formula rate plan, and implementation of the transmission recovery mechanism. Results of the 2017 evaluation report filing will be implemented with the September 2018 billing month. Entergy Louisiana also included in its filing a presentation of an initial proposal to combine the legacy Entergy Louisiana and legacy Entergy Gulf States Louisiana residential rates, which combination would be accomplished on a revenue neutral basis intended not to affect the rates of other customer classes. Union Power Station and Deactivation or Retirement Decisions for Entergy Louisiana Plants As discussed in the Form 10-K, as a term of the LPSC-approved settlement authorizing the purchase of Power Blocks 3 and 4 of the Union Power Station, Entergy Louisiana agreed to make a filing with the LPSC to review its decisions to deactivate Ninemile 3 and Willow Glen 2 and 4 and its decision to retire Little Gypsy 1. In January 2016, Entergy Louisiana made its compliance filing with the LPSC. Entergy Louisiana, LPSC staff, and intervenors participated in a technical conference in March 2016 where Entergy Louisiana presented information on its deactivation/retirement decisions for these four units in addition to information on the current deactivation decisions for the ten-year planning horizon. No party contests the prudence of the decision to deactivate Willow Glen 2 and 4 or suggests reactivation of these units; however, issues have been raised related to Entergy Louisiana’s decision to give up its transmission service rights in MISO for Willow Glen 2 and 4 rather than placing the units into suspended status for the three-year term permitted by MISO. In March 2018 the LPSC adopted the ALJ’s recommended order finding that Entergy Louisiana did not demonstrate that its decision to permanently surrender transmission rights for the mothballed (not retired) Willow Glen 2 and 4 units was reasonable and that Entergy Louisiana should hold customers harmless from increased transmission expenses should those units be reactivated. Because no party or the LPSC suggested that Willow Glen 2 and 4 should be reactivated and because the cost to return those units to service far exceeds the revenue the units were expected to generate in MISO, Entergy Louisiana retired Willow Glen 2 and 4 in March 2018. Entergy Louisiana submitted a compliance filing regarding retirement of Willow Glen 2 and 4, and the LPSC closed the proceeding. Retail Rates - Gas 2017 Rate Stabilization Plan Filing In January 2018, Entergy Louisiana filed with the LPSC its gas rate stabilization plan for the test year ended September 30, 2017. The filing of the evaluation report for the test year 2017 reflected an earned return on common equity of 9.06% . This earned return is below the earnings sharing band of the rate stabilization plan and results in a rate increase of $0.1 million . Due to the enactment of the Tax Act in late-December 2017, Entergy Louisiana did not have adequate time to reflect the effects of this tax legislation in the rate stabilization plan. In April 2018 Entergy Louisiana filed a supplemental evaluation report for the test year ended September 2017, reflecting the effects of the Tax Act, including a proposal to use the unprotected excess accumulated deferred income taxes to offset storm restoration deferred operation and maintenance costs incurred by Entergy Louisiana in connection with the August 2016 flooding disaster in its gas service area. The supplemental filing reflects an earned return on common equity of 10.79% . As-filed rates from the supplemental filing were implemented, subject to refund, with customers receiving a cost reduction of approximately $0.7 million effective with bills rendered on and after the first billing cycle of May 2018, as well as a $0.2 million reduction in the gas infrastructure rider effective with bills rendered on and after the first billing cycle of July 2018. The proceeding is currently in its discovery phase. A procedural schedule has not been established. Filings with the MPSC (Entergy Mississippi) Formula Rate Plan In March 2018, Entergy Mississippi submitted its formula rate plan 2018 test year filing and 2017 look-back filing showing Entergy Mississippi’s earned return for the historical 2017 calendar year and projected earned return for the 2018 calendar year, in large part as a result of the lower federal corporate income tax rate effective in 2018, to be within the formula rate plan bandwidth, resulting in no change in rates. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a stipulation that confirmed that Entergy Mississippi’s earned returns for both the 2017 look-back filing and 2018 test year were within the respective formula rate plan bandwidths. In June 2018 the MPSC approved the stipulation, which resulted in no change in rates. See “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above for additional discussion regarding the proposed treatment of the effects of the lower federal corporate income tax rate. Internal Restructuring In March 2018, Entergy Mississippi filed an application with the MPSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Mississippi to a new entity, which would ultimately be held by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the MPSC, the FERC, and the NRC. If the MPSC approves the restructuring by August 2018 and the restructuring closes on or before December 1, 2018, Entergy Mississippi proposed in its application to credit retail customers $27 million over six years, beginning in 2019. If the MPSC, the FERC, and the NRC approvals are obtained, Entergy Mississippi expects the restructuring will be consummated on or before December 1, 2018. It is currently contemplated that Entergy Mississippi would undertake a multi-step restructuring, which would include the following: • Entergy Mississippi would redeem its outstanding preferred stock, at the aggregate redemption price of approximately $21.2 million , including call premiums, plus accumulated and unpaid dividends, if any. • Entergy Mississippi would convert from a Mississippi corporation to a Texas corporation. • Under the Texas Business Organizations Code (TXBOC), Entergy Mississippi will allocate substantially all of its assets to a new subsidiary, Entergy Mississippi Power and Light, LLC, a Texas limited liability company (Entergy Mississippi Power and Light), and Entergy Mississippi Power and Light will assume substantially all of the liabilities of Entergy Mississippi, in a transaction regarded as a merger under the TXBOC. Entergy Mississippi will remain in existence and hold the membership interests in Entergy Mississippi Power and Light. • Entergy Mississippi will contribute the membership interests in Entergy Mississippi Power and Light to an affiliate (Entergy Utility Holding Company, LLC, a Texas limited liability company and subsidiary of Entergy Corporation). As a result of the contribution, Entergy Mississippi Power and Light will be a wholly-owned subsidiary of Entergy Utility Holding Company, LLC. • Entergy Mississippi will change its name to Entergy Utility Enterprises, Inc., and Entergy Mississippi Power and Light will then change its name to Entergy Mississippi, LLC. Upon the completion of the restructuring, Entergy Mississippi, LLC will hold substantially all of the assets, and will have assumed substantially all of the liabilities, of Entergy Mississippi. Entergy Mississippi may modify or supplement the steps to be taken to effectuate the restructuring. Filings with the City Council (Entergy New Orleans) Energy Smart Programs As discussed in the Form 10-K, in September 2017, Entergy New Orleans filed a supplemental plan and proposed several options for an interim cost recovery mechanism necessary to recover program costs during the period between when existing funds directed to Energy Smart programs were depleted and when new rates from the anticipated 2018 combined rate case, which will include a cost recovery mechanism for Energy Smart funding, take effect (estimated to be August 2019). In December 2017 the City Council approved an energy efficiency cost recovery rider as an interim funding mechanism for Energy Smart, subject to verification that no additional funding sources exist. In June 2018 the City Council also approved a resolution recommending that Entergy New Orleans allocate approximately $13.5 million of benefits resulting from the Tax Act to Energy Smart. Entergy New Orleans is seeking approval of a permanent and stable source of funding for Energy Smart as part of its base rate case filed |
Entergy Texas [Member] | |
Rate and Regulatory Matters | RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Regulatory Assets and Regulatory Liabilities See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion. Regulatory activity regarding the Tax Cuts and Jobs Act See the “ Other Tax Matters - Tax Cuts and Jobs Act ” section in Note 3 to the financial statements in the Form 10-K for discussion of the effects of the enactment in December 2017 of the Tax Cuts and Jobs Act (the Tax Act), including its effects on Entergy’s and the Registrant Subsidiaries’ regulatory asset/liability for income taxes. After assessing the activity described in more detail below regarding the status of the proposals the Registrant Subsidiaries made to their regulators for the return of unprotected excess accumulated deferred income taxes to customers, in 2018, Entergy and each of the Registrant Subsidiaries are reclassifying from the regulatory liability for income taxes to current liabilities the portion of their unprotected excess accumulated deferred income taxes that they expect to return to customers over the next twelve months. Entergy Arkansas See the Form 10-K for a discussion of the activity of the APSC and Entergy Arkansas after enactment of the Tax Act in December 2017. The APSC granted Entergy Arkansas’s request for clarification regarding the APSC’s order issued after enactment of the Tax Act. The APSC stated that its order was not a final determination and that the APSC had made no decision at that time on the appropriate final accounting or ratemaking treatment of the amounts in question. A hearing was held in May 2018 regarding the APSC’s inquiries into the effects of the Tax Act, including Entergy Arkansas’s proposal to utilize its existing formula rate plan rider for its customers to realize the remaining benefits of the Tax Act. In July 2018 the APSC issued an order agreeing with Entergy Arkansas’s proposal to have the effects on current income tax expense flow through Entergy Arkansas’s formula rate plan rider and its treatment of protected and unprotected excess accumulated deferred income taxes. The APSC also directed Entergy Arkansas to submit in the tax adjustment rider proceeding, discussed below, the adjustments to all other riders affected by the Tax Act and to include an amendment for a true up mechanism where a rider affected by the Tax Act does not already contain a true up mechanism. Consistent with its previously stated intent to return unprotected excess accumulated deferred income taxes to customers as expeditiously as possible, Entergy Arkansas initiated a tariff proceeding in February 2018 proposing to establish a tax adjustment rider to provide retail customers with certain tax benefits associated with the Tax Act. For the residential customer class, the unprotected excess accumulated deferred income taxes will be returned to customers over a 21-month period from April 2018 through December 2019. For all other customer classes, the unprotected excess accumulated deferred income taxes will be returned to customers over a 9-month period from April 2018 through December 2018. A true-up provision also was included, with any over- or under-returned unprotected excess accumulated deferred income taxes to be credited or billed to customers during the billing month of January 2020, with any residual amounts of over- or under-returned unprotected excess accumulated deferred income taxes to be flowed through Entergy Arkansas’s energy cost recovery rider. In March 2018 the APSC approved the tax adjustment rider effective with the first billing cycle of April 2018. Entergy Louisiana See the Form 10-K for a discussion of the activity of the LPSC and Entergy Louisiana after enactment of the Tax Act in December 2017. In July 2018 the LPSC issued a proposed rule requiring utilities to adjust rates prospectively to reflect the lower tax rate (either through a formula rate plan or rate case), refund excess tax expense collected since January 1, 2018 until the lower tax rate is reflected in rates (with the refund occurring over one year), and refund excess accumulated deferred income taxes over two years. Entergy Louisiana believes that its formula rate plan settlement, approved in April 2018 and discussed below, addresses fully its obligations regarding the Tax Act and will seek such confirmation in its comments to the proposed rule. In the formula rate plan settlement approved by the LPSC in April 2018 the parties agreed that Entergy Louisiana will return to customers one-half of its eligible unprotected excess deferred income taxes from May 2018 through December 2018 and return to customers the other half from January 2019 through August 2022. In addition, the parties agreed that in order to flow back to customers certain other tax benefits created by the Tax Act, Entergy Louisiana would establish a regulatory liability effective January 1, 2018 in the amount of $9.1 million per month until new base rates under the formula rate plan are established, and this regulatory liability will be returned to customers over the next formula rate plan rate-effective period. Entergy Louisiana recorded a $55 million regulatory liability thus far in 2018 pursuant to this provision of the settlement. The LPSC staff and intervenors in the settlement reserved the right to obtain data from Entergy Louisiana to confirm the determination of excess accumulated deferred income taxes resulting from the Tax Act and analysis thereof as part of the formula rate plan review proceeding for the 2017 test year filing, which, as discussed below, Entergy Louisiana filed in June 2018. Entergy Mississippi As discussed in the Form 10-K, after enactment of the Tax Act the MPSC ordered utilities, including Entergy Mississippi, that operate under a formula rate plan to file a description by February 26, 2018, of how the Tax Act will be reflected in the formula rate plan under which the utility operates. Entergy Mississippi's plan, as filed with the MPSC on February 26, 2018, included a request to reflect the changes related to the Tax Act in the 2018 formula rate plan filing. Entergy Mississippi filed its 2018 formula rate plan on March 15, 2018 and included a proposal to return all of its unprotected excess accumulated deferred income taxes to customers through rates or in exchange for other assets, or a combination of both, by the end of 2018. Also, in March 2018 the MPSC issued a subsequent order in its generic tax reform docket ordering utilities, including Entergy Mississippi, to explain the implementation of the utilities tax adjustment clause, or, in the alternative, why the tax adjustment clause is inapplicable; submit an analysis of the ratemaking effects of the Tax Act on current and future revenue requirements for rate schedules that include a gross-up for federal taxes; and make appropriate accounting entries to recognize the removal of excess deferred taxes from the balance of the utility’s accumulated deferred income tax account, or, in the alternative, explain why recording such entries is not appropriate. In April 2018, Entergy Mississippi filed its response to the MPSC stating that the tax adjustment clauses in its base rates are properly implemented through its formula rate plan. Entergy Mississippi also provided analysis of the ratemaking effects of the Tax Act. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into and filed a joint stipulation in Entergy Mississippi’s formula rate plan filing that addressed Entergy Mississippi’s 2018 formula rate plan evaluation report and the ratemaking effects of the Tax Act. In June 2018 the MPSC approved the stipulation, which provides for incorporating the reduction of the statutory federal income tax rate through the formula rate plan and the flow-back of protected excess accumulated deferred income taxes over approximately 40 years through the formula rate plan. The stipulation also provides for the offset of unprotected excess accumulated deferred income taxes of $127.2 million against net utility plant and $2.2 million against other regulatory assets, and the return to customers of the remaining balance of unprotected excess accumulated deferred income taxes as recovery of a portion of fuel oil inventory and customer bill credits over a 3-month period from July 2018 through September 2018, with any true-up to be reflected in the November 2018 power management rider submittal. Entergy Mississippi recorded the reduction against net utility plant and other regulatory assets in June 2018. Entergy New Orleans As discussed in the Form 10-K, after enactment of the Tax Act the City Council passed a resolution ordering Entergy New Orleans to, effective January 1, 2018, record deferred regulatory liabilities to account for the Tax Act’s effect on Entergy New Orleans’s revenue requirement and to make a filing by mid-March 2018 regarding the Tax Act’s effects on Entergy New Orleans’s operating income and rate base and potential mechanisms for customers to receive benefits of the Tax Act. The City Council’s resolution also directed Entergy New Orleans to request that Entergy Services file with the FERC for revisions of the Unit Power Sales Agreement and MSS-4 replacement tariffs to address the return of excess accumulated deferred income taxes. Entergy has submitted filings of this type to the FERC. In March 2018, Entergy New Orleans filed its response to that resolution stating that the Tax Act reduced income tax expense from what is presently reflected in rates by approximately $8.2 million annually for electric operations and by approximately $1.3 million annually for gas operations. In the filing, Entergy New Orleans proposed to return to customers from June 2018 through August 2019 the benefits of the reduction in income tax expense and its unprotected excess accumulated deferred income taxes through a combination of bill credits and investments in energy efficiency programs, grid modernization, and Smart City projects. Entergy New Orleans submitted supplemental information in April 2018 and May 2018. Shortly thereafter, Entergy New Orleans and the City Council’s advisors reached an agreement in principle that provides for benefits that will be realized by Entergy New Orleans customers through bill credits starting in July 2018 and offsets to future investments in energy efficiency programs, grid modernization, and Smart City projects, as well as additional benefits related to the filings made at FERC. The agreement in principle was approved by the City Council in June 2018. Entergy Texas As discussed below, in May 2018, Entergy Texas filed its 2018 base rate case with the PUCT. Entergy Texas’s proposed rates and revenues reflect the inclusion of the federal income tax reductions due to the Tax Act. In the rate case Entergy Texas proposed to return its unprotected excess accumulated deferred income taxes to customers over a two-year period following PUCT approval. System Energy In a filing made with the FERC in March 2018, Entergy proposed revisions to the Unit Power Sales Agreement, among other agreements, to reflect the effects of the Tax Act. In the filing System Energy proposed to return all of its unprotected excess accumulated deferred income taxes to its customers by the end of 2018. In May 2018 the FERC accepted System Energy’s proposed tax revisions with an effective date of June 1, 2018, subject to refund and the outcome of settlement and hearing procedures. Settlement discussions are ongoing. Fuel and purchased power cost recovery Entergy Arkansas Energy Cost Recovery Rider In March 2018, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.01547 per kWh to $0.01882 per kWh. The Arkansas Attorney General filed a response to Entergy Arkansas’s annual redetermination filing requesting that the APSC suspend the proposed tariff to investigate the amount of the redetermination or, alternatively, to allow recovery subject to refund. Among the reasons the Arkansas Attorney General cited for suspension were questions pertaining to how Entergy Arkansas forecasted sales and potential implications of the Tax Act. Entergy Arkansas replied to the Arkansas Attorney General’s filing and stated that, to the extent there are questions pertaining to its load forecasting or the operation of the energy cost recovery rider, those issues exceed the scope of the instant rate redetermination. Entergy Arkansas also stated that potential effects of the Tax Act are appropriately considered in the APSC’s separate proceeding looking at potential implications of the new tax law. The APSC general staff filed a reply to the Arkansas Attorney General’s filing and agreed that Entergy Arkansas’s filing complied with the terms of the energy cost recovery rider. In April 2018 the APSC issued an order declining to suspend Entergy Arkansas’s energy cost recovery rider rate and declining to require further investigation at this time of the issues suggested by the Attorney General in the proceeding. The redetermined rate became effective with the first billing cycle of April 2018. Discovery continues to be conducted by the parties with respect to the redetermined rate. Entergy Mississippi Mississippi Attorney General Complaint As discussed in the Form 10-K the Mississippi Attorney General filed a complaint in state court in December 2008 against Entergy Corporation, Entergy Mississippi, Entergy Services, and Entergy Power alleging, among other things, violations of Mississippi statutes, fraud, and breach of good faith and fair dealing, and requesting an accounting and restitution. The defendants have denied the allegations. In June 2017 the District Court issued a case management order setting a trial date in November 2018. Discovery ended in May 2018. In June 2018, Entergy filed motions for summary judgment, which are currently pending before the District Court. In July 2018 the Mississippi Attorney General filed briefs opposing the summary judgment. Entergy Texas As discussed in the Form 10-K, in July 2015 certain parties filed briefs in an open PUCT proceeding asserting that Entergy Texas should refund to retail customers an additional $10.9 million in bandwidth remedy payments Entergy Texas received related to calendar year 2006 production costs. In October 2015 an ALJ issued a proposal for decision recommending that the additional bandwidth remedy payments be refunded to retail customers. In January 2016 the PUCT issued its order affirming the ALJ’s recommendation, and Entergy Texas filed a motion for rehearing of the PUCT’s decision, which the PUCT denied. In March 2016, Entergy Texas filed a complaint in Federal District Court for the Western District of Texas and a petition in the Travis County (State) District Court appealing the PUCT’s decision. The pending appeals did not stay the PUCT’s decision, and Entergy Texas refunded to customers the $10.9 million over a four-month period beginning with the first billing cycle of July 2016. The federal appeal of the PUCT’s January 2016 decision was heard in December 2016, and the Federal District Court granted Entergy Texas’s requested relief. In January 2017 the PUCT and an intervenor filed petitions for appeal of the Federal District Court ruling to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held before the Fifth Circuit in February 2018. In April 2018 the Fifth Circuit reversed the decision of the Federal District Court, reinstating the original PUCT decision. The State District Court appeal of the PUCT’s January 2016 decision remains pending. In December 2017, Entergy Texas filed an application for a fuel refund of approximately $30.5 million for the months of May 2017 through October 2017. Also in December 2017, the PUCT’s ALJ approved the refund on an interim basis. For most customers, the refunds flowed through bills beginning January 2018 and continued through March 2018. The fuel refund was approved by the PUCT in March 2018. Retail Rate Proceedings See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that information. Filings with the APSC (Entergy Arkansas) 2018 Formula Rate Plan Filing In July 2018, Entergy Arkansas filed with the APSC its 2018 formula rate plan filing to set its formula rate for the 2019 calendar year. The filing shows Entergy Arkansas’s projected earned return on common equity for the twelve months ended December 31, 2019 test period to be below the formula rate plan bandwidth. Additionally, the filing includes the first netting adjustment under the current formula rate plan for the historical test year 2017, which is a comparison of projected costs and sales approved in the 2016 formula rate plan filing to actual 2017 costs and sales data. The filing includes a projected $73.4 million revenue deficiency for 2019 and a $95.6 million revenue deficiency for the 2017 historical test year, for a total revenue requirement of $169 million for this filing. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Because Entergy Arkansas’s revenue requirement in this filing exceeds the constraint, the resulting increase is limited to four percent of total revenue, which is $65.4 million . Entergy Arkansas recommended that the parties to the proceeding support a hearing date in November 2018 and requested that the APSC issue an order approving the proposed formula rate plan adjustment in December 2018, with the proposed formula rate plan adjustment effective with the first billing cycle of January 2019. Internal Restructuring As discussed in the Form 10-K, in November 2017, Entergy Arkansas filed an application with the APSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Arkansas to a new entity, which would ultimately be owned by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the APSC, the FERC, and the NRC. Entergy Arkansas also filed a notice with the Missouri Public Service Commission in December 2017 out of an abundance of caution, although Entergy Arkansas does not serve any retail customers in Missouri. In April 2018 the Missouri Public Service Commission approved Entergy Arkansas’s filing. In July 2018, Entergy Arkansas filed a settlement, reached by all parties in the APSC proceeding, resolving all issues and seeking an APSC decision no later than September 1, 2018. If the appropriate approvals are obtained, Entergy Arkansas expects the restructuring will be consummated on or before December 1, 2018. Filings with the LPSC (Entergy Louisiana) Retail Rates - Electric 2016 Formula Rate Plan Filing As discussed in the Form 10-K, in May 2017, Entergy Louisiana filed its formula rate plan evaluation report for its 2016 calendar year operations. Rates reflecting the adjustments included in the formula rate plan evaluation report were implemented with the first billing cycle of September 2017, subject to refund. In September 2017 the LPSC issued its report indicating that no changes to Entergy Louisiana’s original formula rate plan evaluation report were required but reserved for several issues, including Entergy Louisiana’s September 2017 update to its formula rate plan evaluation report. In July 2018, Entergy Louisiana and the LPSC staff filed an unopposed joint report setting forth a correction to the annualization calculation, the effect of which was a net $3.5 million revenue requirement reduction, and indicating that there are no outstanding issues with the 2016 formula rate plan report, the supplemental report, or the interim updates. The LPSC voted to accept and approve the unopposed joint report in August 2018. Formula Rate Plan Extension Request In August 2017, Entergy Louisiana filed a request with the LPSC seeking to extend its formula rate plan for three years (2017-2019) with limited modifications of its terms. Those modifications include: a one-time resetting of base rates to the midpoint of the band at Entergy Louisiana’s authorized return on equity of 9.95% for the 2017 test year; narrowing of the formula rate plan bandwidth from a total of 160 basis points to 80 basis points; and a forward-looking mechanism that would allow Entergy Louisiana to recover certain transmission-related costs contemporaneously with when those projects begin delivering benefits to customers. Several parties intervened in the proceeding and all parties participated in settlement discussions. In April 2018 the LPSC approved an unopposed joint motion filed by Entergy Louisiana and the LPSC staff that settles the matter. The settlement extends the formula rate plan for three years, providing for rates through at least August 2021. In addition to retaining the major features of the traditional formula rate plan, substantive features of the extended formula rate plan include: • a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year and for the St. Charles Power Station when it enters commercial operation; • a 9.8% target earned return on common equity for the 2018 and 2019 test years; • narrowing of the common equity bandwidth to plus or minus 60 basis points around the target earned return on common equity; • a cap on potential revenue increase of $35 million for the 2018 evaluation period, and $70 million for the cumulative 2018 and 2019 evaluation periods, on formula rate plan cost of service rate increases (the cap excludes rate changes associated with the transmission recovery mechanism described below and rate changes associated with additional capacity); • a framework for the flow back of certain tax benefits created by the Tax Act to customers, as described in “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above; and • a transmission recovery mechanism providing for the opportunity to recover certain transmission related expenditures in excess of $100 million annually for projects placed in service up to one month prior to rate change outside of sharing that is designed to operate in a manner similar to the additional capacity mechanism. 2017 Formula Rate Plan Filing In June 2018, Entergy Louisiana filed its formula rate plan evaluation report for its 2017 calendar year operations. As stated above under “Formula Rate Plan Extension Request” for the 2017 test year there will be a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year. As such, base rider formula rate plan revenue is to be adjusted prospectively to increase or decrease the earned return on equity fully to the approved cost of equity of 9.95% . The 2017 test year evaluation report produced an earned return on equity of 8.16% , due in large part to revenue-neutral realignments to other recovery mechanisms. Without these realignments, the evaluation report produces an earned return on equity of 9.88% and a resulting base rider formula rate plan revenue increase of $4.8 million . Excluding the Tax Act credits provided for by the tax reform adjustment mechanisms, total formula rate plan revenues will further increase by a total of $98 million as a result of the evaluation report due to adjustments to the additional capacity and MISO cost recovery mechanisms of the formula rate plan, and implementation of the transmission recovery mechanism. Results of the 2017 evaluation report filing will be implemented with the September 2018 billing month. Entergy Louisiana also included in its filing a presentation of an initial proposal to combine the legacy Entergy Louisiana and legacy Entergy Gulf States Louisiana residential rates, which combination would be accomplished on a revenue neutral basis intended not to affect the rates of other customer classes. Union Power Station and Deactivation or Retirement Decisions for Entergy Louisiana Plants As discussed in the Form 10-K, as a term of the LPSC-approved settlement authorizing the purchase of Power Blocks 3 and 4 of the Union Power Station, Entergy Louisiana agreed to make a filing with the LPSC to review its decisions to deactivate Ninemile 3 and Willow Glen 2 and 4 and its decision to retire Little Gypsy 1. In January 2016, Entergy Louisiana made its compliance filing with the LPSC. Entergy Louisiana, LPSC staff, and intervenors participated in a technical conference in March 2016 where Entergy Louisiana presented information on its deactivation/retirement decisions for these four units in addition to information on the current deactivation decisions for the ten-year planning horizon. No party contests the prudence of the decision to deactivate Willow Glen 2 and 4 or suggests reactivation of these units; however, issues have been raised related to Entergy Louisiana’s decision to give up its transmission service rights in MISO for Willow Glen 2 and 4 rather than placing the units into suspended status for the three-year term permitted by MISO. In March 2018 the LPSC adopted the ALJ’s recommended order finding that Entergy Louisiana did not demonstrate that its decision to permanently surrender transmission rights for the mothballed (not retired) Willow Glen 2 and 4 units was reasonable and that Entergy Louisiana should hold customers harmless from increased transmission expenses should those units be reactivated. Because no party or the LPSC suggested that Willow Glen 2 and 4 should be reactivated and because the cost to return those units to service far exceeds the revenue the units were expected to generate in MISO, Entergy Louisiana retired Willow Glen 2 and 4 in March 2018. Entergy Louisiana submitted a compliance filing regarding retirement of Willow Glen 2 and 4, and the LPSC closed the proceeding. Retail Rates - Gas 2017 Rate Stabilization Plan Filing In January 2018, Entergy Louisiana filed with the LPSC its gas rate stabilization plan for the test year ended September 30, 2017. The filing of the evaluation report for the test year 2017 reflected an earned return on common equity of 9.06% . This earned return is below the earnings sharing band of the rate stabilization plan and results in a rate increase of $0.1 million . Due to the enactment of the Tax Act in late-December 2017, Entergy Louisiana did not have adequate time to reflect the effects of this tax legislation in the rate stabilization plan. In April 2018 Entergy Louisiana filed a supplemental evaluation report for the test year ended September 2017, reflecting the effects of the Tax Act, including a proposal to use the unprotected excess accumulated deferred income taxes to offset storm restoration deferred operation and maintenance costs incurred by Entergy Louisiana in connection with the August 2016 flooding disaster in its gas service area. The supplemental filing reflects an earned return on common equity of 10.79% . As-filed rates from the supplemental filing were implemented, subject to refund, with customers receiving a cost reduction of approximately $0.7 million effective with bills rendered on and after the first billing cycle of May 2018, as well as a $0.2 million reduction in the gas infrastructure rider effective with bills rendered on and after the first billing cycle of July 2018. The proceeding is currently in its discovery phase. A procedural schedule has not been established. Filings with the MPSC (Entergy Mississippi) Formula Rate Plan In March 2018, Entergy Mississippi submitted its formula rate plan 2018 test year filing and 2017 look-back filing showing Entergy Mississippi’s earned return for the historical 2017 calendar year and projected earned return for the 2018 calendar year, in large part as a result of the lower federal corporate income tax rate effective in 2018, to be within the formula rate plan bandwidth, resulting in no change in rates. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a stipulation that confirmed that Entergy Mississippi’s earned returns for both the 2017 look-back filing and 2018 test year were within the respective formula rate plan bandwidths. In June 2018 the MPSC approved the stipulation, which resulted in no change in rates. See “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above for additional discussion regarding the proposed treatment of the effects of the lower federal corporate income tax rate. Internal Restructuring In March 2018, Entergy Mississippi filed an application with the MPSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Mississippi to a new entity, which would ultimately be held by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the MPSC, the FERC, and the NRC. If the MPSC approves the restructuring by August 2018 and the restructuring closes on or before December 1, 2018, Entergy Mississippi proposed in its application to credit retail customers $27 million over six years, beginning in 2019. If the MPSC, the FERC, and the NRC approvals are obtained, Entergy Mississippi expects the restructuring will be consummated on or before December 1, 2018. It is currently contemplated that Entergy Mississippi would undertake a multi-step restructuring, which would include the following: • Entergy Mississippi would redeem its outstanding preferred stock, at the aggregate redemption price of approximately $21.2 million , including call premiums, plus accumulated and unpaid dividends, if any. • Entergy Mississippi would convert from a Mississippi corporation to a Texas corporation. • Under the Texas Business Organizations Code (TXBOC), Entergy Mississippi will allocate substantially all of its assets to a new subsidiary, Entergy Mississippi Power and Light, LLC, a Texas limited liability company (Entergy Mississippi Power and Light), and Entergy Mississippi Power and Light will assume substantially all of the liabilities of Entergy Mississippi, in a transaction regarded as a merger under the TXBOC. Entergy Mississippi will remain in existence and hold the membership interests in Entergy Mississippi Power and Light. • Entergy Mississippi will contribute the membership interests in Entergy Mississippi Power and Light to an affiliate (Entergy Utility Holding Company, LLC, a Texas limited liability company and subsidiary of Entergy Corporation). As a result of the contribution, Entergy Mississippi Power and Light will be a wholly-owned subsidiary of Entergy Utility Holding Company, LLC. • Entergy Mississippi will change its name to Entergy Utility Enterprises, Inc., and Entergy Mississippi Power and Light will then change its name to Entergy Mississippi, LLC. Upon the completion of the restructuring, Entergy Mississippi, LLC will hold substantially all of the assets, and will have assumed substantially all of the liabilities, of Entergy Mississippi. Entergy Mississippi may modify or supplement the steps to be taken to effectuate the restructuring. Filings with the City Council (Entergy New Orleans) Energy Smart Programs As discussed in the Form 10-K, in September 2017, Entergy New Orleans filed a supplemental plan and proposed several options for an interim cost recovery mechanism necessary to recover program costs during the period between when existing funds directed to Energy Smart programs were depleted and when new rates from the anticipated 2018 combined rate case, which will include a cost recovery mechanism for Energy Smart funding, take effect (estimated to be August 2019). In December 2017 the City Council approved an energy efficiency cost recovery rider as an interim funding mechanism for Energy Smart, subject to verification that no additional funding sources exist. In June 2018 the City Council also approved a resolution recommending that Entergy New Orleans allocate approximately $13.5 million of benefits resulting from the Tax Act to Energy Smart. Entergy New Orleans is seeking approval of a permanent and stable source of funding for Energy Smart as part of its base rate case filed |
System Energy [Member] | |
Rate and Regulatory Matters | RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Regulatory Assets and Regulatory Liabilities See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion. Regulatory activity regarding the Tax Cuts and Jobs Act See the “ Other Tax Matters - Tax Cuts and Jobs Act ” section in Note 3 to the financial statements in the Form 10-K for discussion of the effects of the enactment in December 2017 of the Tax Cuts and Jobs Act (the Tax Act), including its effects on Entergy’s and the Registrant Subsidiaries’ regulatory asset/liability for income taxes. After assessing the activity described in more detail below regarding the status of the proposals the Registrant Subsidiaries made to their regulators for the return of unprotected excess accumulated deferred income taxes to customers, in 2018, Entergy and each of the Registrant Subsidiaries are reclassifying from the regulatory liability for income taxes to current liabilities the portion of their unprotected excess accumulated deferred income taxes that they expect to return to customers over the next twelve months. Entergy Arkansas See the Form 10-K for a discussion of the activity of the APSC and Entergy Arkansas after enactment of the Tax Act in December 2017. The APSC granted Entergy Arkansas’s request for clarification regarding the APSC’s order issued after enactment of the Tax Act. The APSC stated that its order was not a final determination and that the APSC had made no decision at that time on the appropriate final accounting or ratemaking treatment of the amounts in question. A hearing was held in May 2018 regarding the APSC’s inquiries into the effects of the Tax Act, including Entergy Arkansas’s proposal to utilize its existing formula rate plan rider for its customers to realize the remaining benefits of the Tax Act. In July 2018 the APSC issued an order agreeing with Entergy Arkansas’s proposal to have the effects on current income tax expense flow through Entergy Arkansas’s formula rate plan rider and its treatment of protected and unprotected excess accumulated deferred income taxes. The APSC also directed Entergy Arkansas to submit in the tax adjustment rider proceeding, discussed below, the adjustments to all other riders affected by the Tax Act and to include an amendment for a true up mechanism where a rider affected by the Tax Act does not already contain a true up mechanism. Consistent with its previously stated intent to return unprotected excess accumulated deferred income taxes to customers as expeditiously as possible, Entergy Arkansas initiated a tariff proceeding in February 2018 proposing to establish a tax adjustment rider to provide retail customers with certain tax benefits associated with the Tax Act. For the residential customer class, the unprotected excess accumulated deferred income taxes will be returned to customers over a 21-month period from April 2018 through December 2019. For all other customer classes, the unprotected excess accumulated deferred income taxes will be returned to customers over a 9-month period from April 2018 through December 2018. A true-up provision also was included, with any over- or under-returned unprotected excess accumulated deferred income taxes to be credited or billed to customers during the billing month of January 2020, with any residual amounts of over- or under-returned unprotected excess accumulated deferred income taxes to be flowed through Entergy Arkansas’s energy cost recovery rider. In March 2018 the APSC approved the tax adjustment rider effective with the first billing cycle of April 2018. Entergy Louisiana See the Form 10-K for a discussion of the activity of the LPSC and Entergy Louisiana after enactment of the Tax Act in December 2017. In July 2018 the LPSC issued a proposed rule requiring utilities to adjust rates prospectively to reflect the lower tax rate (either through a formula rate plan or rate case), refund excess tax expense collected since January 1, 2018 until the lower tax rate is reflected in rates (with the refund occurring over one year), and refund excess accumulated deferred income taxes over two years. Entergy Louisiana believes that its formula rate plan settlement, approved in April 2018 and discussed below, addresses fully its obligations regarding the Tax Act and will seek such confirmation in its comments to the proposed rule. In the formula rate plan settlement approved by the LPSC in April 2018 the parties agreed that Entergy Louisiana will return to customers one-half of its eligible unprotected excess deferred income taxes from May 2018 through December 2018 and return to customers the other half from January 2019 through August 2022. In addition, the parties agreed that in order to flow back to customers certain other tax benefits created by the Tax Act, Entergy Louisiana would establish a regulatory liability effective January 1, 2018 in the amount of $9.1 million per month until new base rates under the formula rate plan are established, and this regulatory liability will be returned to customers over the next formula rate plan rate-effective period. Entergy Louisiana recorded a $55 million regulatory liability thus far in 2018 pursuant to this provision of the settlement. The LPSC staff and intervenors in the settlement reserved the right to obtain data from Entergy Louisiana to confirm the determination of excess accumulated deferred income taxes resulting from the Tax Act and analysis thereof as part of the formula rate plan review proceeding for the 2017 test year filing, which, as discussed below, Entergy Louisiana filed in June 2018. Entergy Mississippi As discussed in the Form 10-K, after enactment of the Tax Act the MPSC ordered utilities, including Entergy Mississippi, that operate under a formula rate plan to file a description by February 26, 2018, of how the Tax Act will be reflected in the formula rate plan under which the utility operates. Entergy Mississippi's plan, as filed with the MPSC on February 26, 2018, included a request to reflect the changes related to the Tax Act in the 2018 formula rate plan filing. Entergy Mississippi filed its 2018 formula rate plan on March 15, 2018 and included a proposal to return all of its unprotected excess accumulated deferred income taxes to customers through rates or in exchange for other assets, or a combination of both, by the end of 2018. Also, in March 2018 the MPSC issued a subsequent order in its generic tax reform docket ordering utilities, including Entergy Mississippi, to explain the implementation of the utilities tax adjustment clause, or, in the alternative, why the tax adjustment clause is inapplicable; submit an analysis of the ratemaking effects of the Tax Act on current and future revenue requirements for rate schedules that include a gross-up for federal taxes; and make appropriate accounting entries to recognize the removal of excess deferred taxes from the balance of the utility’s accumulated deferred income tax account, or, in the alternative, explain why recording such entries is not appropriate. In April 2018, Entergy Mississippi filed its response to the MPSC stating that the tax adjustment clauses in its base rates are properly implemented through its formula rate plan. Entergy Mississippi also provided analysis of the ratemaking effects of the Tax Act. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into and filed a joint stipulation in Entergy Mississippi’s formula rate plan filing that addressed Entergy Mississippi’s 2018 formula rate plan evaluation report and the ratemaking effects of the Tax Act. In June 2018 the MPSC approved the stipulation, which provides for incorporating the reduction of the statutory federal income tax rate through the formula rate plan and the flow-back of protected excess accumulated deferred income taxes over approximately 40 years through the formula rate plan. The stipulation also provides for the offset of unprotected excess accumulated deferred income taxes of $127.2 million against net utility plant and $2.2 million against other regulatory assets, and the return to customers of the remaining balance of unprotected excess accumulated deferred income taxes as recovery of a portion of fuel oil inventory and customer bill credits over a 3-month period from July 2018 through September 2018, with any true-up to be reflected in the November 2018 power management rider submittal. Entergy Mississippi recorded the reduction against net utility plant and other regulatory assets in June 2018. Entergy New Orleans As discussed in the Form 10-K, after enactment of the Tax Act the City Council passed a resolution ordering Entergy New Orleans to, effective January 1, 2018, record deferred regulatory liabilities to account for the Tax Act’s effect on Entergy New Orleans’s revenue requirement and to make a filing by mid-March 2018 regarding the Tax Act’s effects on Entergy New Orleans’s operating income and rate base and potential mechanisms for customers to receive benefits of the Tax Act. The City Council’s resolution also directed Entergy New Orleans to request that Entergy Services file with the FERC for revisions of the Unit Power Sales Agreement and MSS-4 replacement tariffs to address the return of excess accumulated deferred income taxes. Entergy has submitted filings of this type to the FERC. In March 2018, Entergy New Orleans filed its response to that resolution stating that the Tax Act reduced income tax expense from what is presently reflected in rates by approximately $8.2 million annually for electric operations and by approximately $1.3 million annually for gas operations. In the filing, Entergy New Orleans proposed to return to customers from June 2018 through August 2019 the benefits of the reduction in income tax expense and its unprotected excess accumulated deferred income taxes through a combination of bill credits and investments in energy efficiency programs, grid modernization, and Smart City projects. Entergy New Orleans submitted supplemental information in April 2018 and May 2018. Shortly thereafter, Entergy New Orleans and the City Council’s advisors reached an agreement in principle that provides for benefits that will be realized by Entergy New Orleans customers through bill credits starting in July 2018 and offsets to future investments in energy efficiency programs, grid modernization, and Smart City projects, as well as additional benefits related to the filings made at FERC. The agreement in principle was approved by the City Council in June 2018. Entergy Texas As discussed below, in May 2018, Entergy Texas filed its 2018 base rate case with the PUCT. Entergy Texas’s proposed rates and revenues reflect the inclusion of the federal income tax reductions due to the Tax Act. In the rate case Entergy Texas proposed to return its unprotected excess accumulated deferred income taxes to customers over a two-year period following PUCT approval. System Energy In a filing made with the FERC in March 2018, Entergy proposed revisions to the Unit Power Sales Agreement, among other agreements, to reflect the effects of the Tax Act. In the filing System Energy proposed to return all of its unprotected excess accumulated deferred income taxes to its customers by the end of 2018. In May 2018 the FERC accepted System Energy’s proposed tax revisions with an effective date of June 1, 2018, subject to refund and the outcome of settlement and hearing procedures. Settlement discussions are ongoing. Fuel and purchased power cost recovery Entergy Arkansas Energy Cost Recovery Rider In March 2018, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase in the rate from $0.01547 per kWh to $0.01882 per kWh. The Arkansas Attorney General filed a response to Entergy Arkansas’s annual redetermination filing requesting that the APSC suspend the proposed tariff to investigate the amount of the redetermination or, alternatively, to allow recovery subject to refund. Among the reasons the Arkansas Attorney General cited for suspension were questions pertaining to how Entergy Arkansas forecasted sales and potential implications of the Tax Act. Entergy Arkansas replied to the Arkansas Attorney General’s filing and stated that, to the extent there are questions pertaining to its load forecasting or the operation of the energy cost recovery rider, those issues exceed the scope of the instant rate redetermination. Entergy Arkansas also stated that potential effects of the Tax Act are appropriately considered in the APSC’s separate proceeding looking at potential implications of the new tax law. The APSC general staff filed a reply to the Arkansas Attorney General’s filing and agreed that Entergy Arkansas’s filing complied with the terms of the energy cost recovery rider. In April 2018 the APSC issued an order declining to suspend Entergy Arkansas’s energy cost recovery rider rate and declining to require further investigation at this time of the issues suggested by the Attorney General in the proceeding. The redetermined rate became effective with the first billing cycle of April 2018. Discovery continues to be conducted by the parties with respect to the redetermined rate. Entergy Mississippi Mississippi Attorney General Complaint As discussed in the Form 10-K the Mississippi Attorney General filed a complaint in state court in December 2008 against Entergy Corporation, Entergy Mississippi, Entergy Services, and Entergy Power alleging, among other things, violations of Mississippi statutes, fraud, and breach of good faith and fair dealing, and requesting an accounting and restitution. The defendants have denied the allegations. In June 2017 the District Court issued a case management order setting a trial date in November 2018. Discovery ended in May 2018. In June 2018, Entergy filed motions for summary judgment, which are currently pending before the District Court. In July 2018 the Mississippi Attorney General filed briefs opposing the summary judgment. Entergy Texas As discussed in the Form 10-K, in July 2015 certain parties filed briefs in an open PUCT proceeding asserting that Entergy Texas should refund to retail customers an additional $10.9 million in bandwidth remedy payments Entergy Texas received related to calendar year 2006 production costs. In October 2015 an ALJ issued a proposal for decision recommending that the additional bandwidth remedy payments be refunded to retail customers. In January 2016 the PUCT issued its order affirming the ALJ’s recommendation, and Entergy Texas filed a motion for rehearing of the PUCT’s decision, which the PUCT denied. In March 2016, Entergy Texas filed a complaint in Federal District Court for the Western District of Texas and a petition in the Travis County (State) District Court appealing the PUCT’s decision. The pending appeals did not stay the PUCT’s decision, and Entergy Texas refunded to customers the $10.9 million over a four-month period beginning with the first billing cycle of July 2016. The federal appeal of the PUCT’s January 2016 decision was heard in December 2016, and the Federal District Court granted Entergy Texas’s requested relief. In January 2017 the PUCT and an intervenor filed petitions for appeal of the Federal District Court ruling to the U.S. Court of Appeals for the Fifth Circuit. Oral argument was held before the Fifth Circuit in February 2018. In April 2018 the Fifth Circuit reversed the decision of the Federal District Court, reinstating the original PUCT decision. The State District Court appeal of the PUCT’s January 2016 decision remains pending. In December 2017, Entergy Texas filed an application for a fuel refund of approximately $30.5 million for the months of May 2017 through October 2017. Also in December 2017, the PUCT’s ALJ approved the refund on an interim basis. For most customers, the refunds flowed through bills beginning January 2018 and continued through March 2018. The fuel refund was approved by the PUCT in March 2018. Retail Rate Proceedings See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that information. Filings with the APSC (Entergy Arkansas) 2018 Formula Rate Plan Filing In July 2018, Entergy Arkansas filed with the APSC its 2018 formula rate plan filing to set its formula rate for the 2019 calendar year. The filing shows Entergy Arkansas’s projected earned return on common equity for the twelve months ended December 31, 2019 test period to be below the formula rate plan bandwidth. Additionally, the filing includes the first netting adjustment under the current formula rate plan for the historical test year 2017, which is a comparison of projected costs and sales approved in the 2016 formula rate plan filing to actual 2017 costs and sales data. The filing includes a projected $73.4 million revenue deficiency for 2019 and a $95.6 million revenue deficiency for the 2017 historical test year, for a total revenue requirement of $169 million for this filing. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Because Entergy Arkansas’s revenue requirement in this filing exceeds the constraint, the resulting increase is limited to four percent of total revenue, which is $65.4 million . Entergy Arkansas recommended that the parties to the proceeding support a hearing date in November 2018 and requested that the APSC issue an order approving the proposed formula rate plan adjustment in December 2018, with the proposed formula rate plan adjustment effective with the first billing cycle of January 2019. Internal Restructuring As discussed in the Form 10-K, in November 2017, Entergy Arkansas filed an application with the APSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Arkansas to a new entity, which would ultimately be owned by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the APSC, the FERC, and the NRC. Entergy Arkansas also filed a notice with the Missouri Public Service Commission in December 2017 out of an abundance of caution, although Entergy Arkansas does not serve any retail customers in Missouri. In April 2018 the Missouri Public Service Commission approved Entergy Arkansas’s filing. In July 2018, Entergy Arkansas filed a settlement, reached by all parties in the APSC proceeding, resolving all issues and seeking an APSC decision no later than September 1, 2018. If the appropriate approvals are obtained, Entergy Arkansas expects the restructuring will be consummated on or before December 1, 2018. Filings with the LPSC (Entergy Louisiana) Retail Rates - Electric 2016 Formula Rate Plan Filing As discussed in the Form 10-K, in May 2017, Entergy Louisiana filed its formula rate plan evaluation report for its 2016 calendar year operations. Rates reflecting the adjustments included in the formula rate plan evaluation report were implemented with the first billing cycle of September 2017, subject to refund. In September 2017 the LPSC issued its report indicating that no changes to Entergy Louisiana’s original formula rate plan evaluation report were required but reserved for several issues, including Entergy Louisiana’s September 2017 update to its formula rate plan evaluation report. In July 2018, Entergy Louisiana and the LPSC staff filed an unopposed joint report setting forth a correction to the annualization calculation, the effect of which was a net $3.5 million revenue requirement reduction, and indicating that there are no outstanding issues with the 2016 formula rate plan report, the supplemental report, or the interim updates. The LPSC voted to accept and approve the unopposed joint report in August 2018. Formula Rate Plan Extension Request In August 2017, Entergy Louisiana filed a request with the LPSC seeking to extend its formula rate plan for three years (2017-2019) with limited modifications of its terms. Those modifications include: a one-time resetting of base rates to the midpoint of the band at Entergy Louisiana’s authorized return on equity of 9.95% for the 2017 test year; narrowing of the formula rate plan bandwidth from a total of 160 basis points to 80 basis points; and a forward-looking mechanism that would allow Entergy Louisiana to recover certain transmission-related costs contemporaneously with when those projects begin delivering benefits to customers. Several parties intervened in the proceeding and all parties participated in settlement discussions. In April 2018 the LPSC approved an unopposed joint motion filed by Entergy Louisiana and the LPSC staff that settles the matter. The settlement extends the formula rate plan for three years, providing for rates through at least August 2021. In addition to retaining the major features of the traditional formula rate plan, substantive features of the extended formula rate plan include: • a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year and for the St. Charles Power Station when it enters commercial operation; • a 9.8% target earned return on common equity for the 2018 and 2019 test years; • narrowing of the common equity bandwidth to plus or minus 60 basis points around the target earned return on common equity; • a cap on potential revenue increase of $35 million for the 2018 evaluation period, and $70 million for the cumulative 2018 and 2019 evaluation periods, on formula rate plan cost of service rate increases (the cap excludes rate changes associated with the transmission recovery mechanism described below and rate changes associated with additional capacity); • a framework for the flow back of certain tax benefits created by the Tax Act to customers, as described in “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above; and • a transmission recovery mechanism providing for the opportunity to recover certain transmission related expenditures in excess of $100 million annually for projects placed in service up to one month prior to rate change outside of sharing that is designed to operate in a manner similar to the additional capacity mechanism. 2017 Formula Rate Plan Filing In June 2018, Entergy Louisiana filed its formula rate plan evaluation report for its 2017 calendar year operations. As stated above under “Formula Rate Plan Extension Request” for the 2017 test year there will be a mid-point reset of formula rate plan revenues to a 9.95% earned return on common equity for the 2017 test year. As such, base rider formula rate plan revenue is to be adjusted prospectively to increase or decrease the earned return on equity fully to the approved cost of equity of 9.95% . The 2017 test year evaluation report produced an earned return on equity of 8.16% , due in large part to revenue-neutral realignments to other recovery mechanisms. Without these realignments, the evaluation report produces an earned return on equity of 9.88% and a resulting base rider formula rate plan revenue increase of $4.8 million . Excluding the Tax Act credits provided for by the tax reform adjustment mechanisms, total formula rate plan revenues will further increase by a total of $98 million as a result of the evaluation report due to adjustments to the additional capacity and MISO cost recovery mechanisms of the formula rate plan, and implementation of the transmission recovery mechanism. Results of the 2017 evaluation report filing will be implemented with the September 2018 billing month. Entergy Louisiana also included in its filing a presentation of an initial proposal to combine the legacy Entergy Louisiana and legacy Entergy Gulf States Louisiana residential rates, which combination would be accomplished on a revenue neutral basis intended not to affect the rates of other customer classes. Union Power Station and Deactivation or Retirement Decisions for Entergy Louisiana Plants As discussed in the Form 10-K, as a term of the LPSC-approved settlement authorizing the purchase of Power Blocks 3 and 4 of the Union Power Station, Entergy Louisiana agreed to make a filing with the LPSC to review its decisions to deactivate Ninemile 3 and Willow Glen 2 and 4 and its decision to retire Little Gypsy 1. In January 2016, Entergy Louisiana made its compliance filing with the LPSC. Entergy Louisiana, LPSC staff, and intervenors participated in a technical conference in March 2016 where Entergy Louisiana presented information on its deactivation/retirement decisions for these four units in addition to information on the current deactivation decisions for the ten-year planning horizon. No party contests the prudence of the decision to deactivate Willow Glen 2 and 4 or suggests reactivation of these units; however, issues have been raised related to Entergy Louisiana’s decision to give up its transmission service rights in MISO for Willow Glen 2 and 4 rather than placing the units into suspended status for the three-year term permitted by MISO. In March 2018 the LPSC adopted the ALJ’s recommended order finding that Entergy Louisiana did not demonstrate that its decision to permanently surrender transmission rights for the mothballed (not retired) Willow Glen 2 and 4 units was reasonable and that Entergy Louisiana should hold customers harmless from increased transmission expenses should those units be reactivated. Because no party or the LPSC suggested that Willow Glen 2 and 4 should be reactivated and because the cost to return those units to service far exceeds the revenue the units were expected to generate in MISO, Entergy Louisiana retired Willow Glen 2 and 4 in March 2018. Entergy Louisiana submitted a compliance filing regarding retirement of Willow Glen 2 and 4, and the LPSC closed the proceeding. Retail Rates - Gas 2017 Rate Stabilization Plan Filing In January 2018, Entergy Louisiana filed with the LPSC its gas rate stabilization plan for the test year ended September 30, 2017. The filing of the evaluation report for the test year 2017 reflected an earned return on common equity of 9.06% . This earned return is below the earnings sharing band of the rate stabilization plan and results in a rate increase of $0.1 million . Due to the enactment of the Tax Act in late-December 2017, Entergy Louisiana did not have adequate time to reflect the effects of this tax legislation in the rate stabilization plan. In April 2018 Entergy Louisiana filed a supplemental evaluation report for the test year ended September 2017, reflecting the effects of the Tax Act, including a proposal to use the unprotected excess accumulated deferred income taxes to offset storm restoration deferred operation and maintenance costs incurred by Entergy Louisiana in connection with the August 2016 flooding disaster in its gas service area. The supplemental filing reflects an earned return on common equity of 10.79% . As-filed rates from the supplemental filing were implemented, subject to refund, with customers receiving a cost reduction of approximately $0.7 million effective with bills rendered on and after the first billing cycle of May 2018, as well as a $0.2 million reduction in the gas infrastructure rider effective with bills rendered on and after the first billing cycle of July 2018. The proceeding is currently in its discovery phase. A procedural schedule has not been established. Filings with the MPSC (Entergy Mississippi) Formula Rate Plan In March 2018, Entergy Mississippi submitted its formula rate plan 2018 test year filing and 2017 look-back filing showing Entergy Mississippi’s earned return for the historical 2017 calendar year and projected earned return for the 2018 calendar year, in large part as a result of the lower federal corporate income tax rate effective in 2018, to be within the formula rate plan bandwidth, resulting in no change in rates. In June 2018, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a stipulation that confirmed that Entergy Mississippi’s earned returns for both the 2017 look-back filing and 2018 test year were within the respective formula rate plan bandwidths. In June 2018 the MPSC approved the stipulation, which resulted in no change in rates. See “ Regulatory activity regarding the Tax Cuts and Jobs Act ” above for additional discussion regarding the proposed treatment of the effects of the lower federal corporate income tax rate. Internal Restructuring In March 2018, Entergy Mississippi filed an application with the MPSC seeking authorization to undertake a restructuring that would result in the transfer of substantially all of the assets and operations of Entergy Mississippi to a new entity, which would ultimately be held by an existing Entergy subsidiary holding company. The restructuring is subject to regulatory review and approval by the MPSC, the FERC, and the NRC. If the MPSC approves the restructuring by August 2018 and the restructuring closes on or before December 1, 2018, Entergy Mississippi proposed in its application to credit retail customers $27 million over six years, beginning in 2019. If the MPSC, the FERC, and the NRC approvals are obtained, Entergy Mississippi expects the restructuring will be consummated on or before December 1, 2018. It is currently contemplated that Entergy Mississippi would undertake a multi-step restructuring, which would include the following: • Entergy Mississippi would redeem its outstanding preferred stock, at the aggregate redemption price of approximately $21.2 million , including call premiums, plus accumulated and unpaid dividends, if any. • Entergy Mississippi would convert from a Mississippi corporation to a Texas corporation. • Under the Texas Business Organizations Code (TXBOC), Entergy Mississippi will allocate substantially all of its assets to a new subsidiary, Entergy Mississippi Power and Light, LLC, a Texas limited liability company (Entergy Mississippi Power and Light), and Entergy Mississippi Power and Light will assume substantially all of the liabilities of Entergy Mississippi, in a transaction regarded as a merger under the TXBOC. Entergy Mississippi will remain in existence and hold the membership interests in Entergy Mississippi Power and Light. • Entergy Mississippi will contribute the membership interests in Entergy Mississippi Power and Light to an affiliate (Entergy Utility Holding Company, LLC, a Texas limited liability company and subsidiary of Entergy Corporation). As a result of the contribution, Entergy Mississippi Power and Light will be a wholly-owned subsidiary of Entergy Utility Holding Company, LLC. • Entergy Mississippi will change its name to Entergy Utility Enterprises, Inc., and Entergy Mississippi Power and Light will then change its name to Entergy Mississippi, LLC. Upon the completion of the restructuring, Entergy Mississippi, LLC will hold substantially all of the assets, and will have assumed substantially all of the liabilities, of Entergy Mississippi. Entergy Mississippi may modify or supplement the steps to be taken to effectuate the restructuring. Filings with the City Council (Entergy New Orleans) Energy Smart Programs As discussed in the Form 10-K, in September 2017, Entergy New Orleans filed a supplemental plan and proposed several options for an interim cost recovery mechanism necessary to recover program costs during the period between when existing funds directed to Energy Smart programs were depleted and when new rates from the anticipated 2018 combined rate case, which will include a cost recovery mechanism for Energy Smart funding, take effect (estimated to be August 2019). In December 2017 the City Council approved an energy efficiency cost recovery rider as an interim funding mechanism for Energy Smart, subject to verification that no additional funding sources exist. In June 2018 the City Council also approved a resolution recommending that Entergy New Orleans allocate approximately $13.5 million of benefits resulting from the Tax Act to Energy Smart. Entergy New Orleans is seeking approval of a permanent and stable source of funding for Energy Smart as part of its base rate case filed |
Equity
Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity | EQUITY (Entergy Corporation and Entergy Louisiana) Common Stock Earnings per Share The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements: For the Three Months Ended June 30, 2018 2017 (In Millions, Except Per Share Data) Basic earnings per share Income Shares $/share Income Shares $/share Net income attributable to Entergy Corporation $245.4 180.8 $1.36 $409.9 179.5 $2.28 Average dilutive effect of: Stock options 0.3 — 0.2 — Other equity plans 0.7 (0.01 ) 0.5 (0.01 ) Equity forwards 1.2 (0.01 ) — — Diluted earnings per share $245.4 183.0 $1.34 $409.9 180.2 $2.27 The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the three months ended June 30, 2018 and approximately 2.5 million for the three months ended June 30, 2017 . For the Six Months Ended June 30, 2018 2017 (In Millions, Except Per Share Data) Basic earnings per share Income Shares $/share Income Shares $/share Net income attributable to Entergy Corporation $378.2 180.8 $2.09 $492.5 179.4 $2.75 Average dilutive effect of: Stock options 0.3 — 0.2 — Other equity plans 0.5 — 0.4 (0.01 ) Equity forwards 0.6 (0.01 ) — — Diluted earnings per share $378.2 182.2 $2.08 $492.5 180.0 $2.74 The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the six months ended June 30, 2018 and approximately 3.7 million for the six months ended June 30, 2017 . Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K. Equity Forward Sale Agreements In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. No amounts have or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the equity forwards occur. The equity forwards require Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. If Entergy elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include repayment of commercial paper, outstanding loans under Entergy's revolving credit facility, or other debt. Until settlement of the equity forwards, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method. Share dilution occurs when the average market price of Entergy’s common stock is higher than the average forward sales price. If Entergy had elected to net share settle the forward sale agreements as of June 30, 2018, Entergy would have been required to deliver 1.2 million shares. Treasury Stock During the six months ended June 30, 2018 , Entergy Corporation issued 323,364 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the six months ended June 30, 2018 . Retained Earnings On July 27, 2018, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.89 per share, payable on September 4, 2018, to holders of record as of August 9, 2018. Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 9 to the financial statements herein for further discussion of effects of the new standard. Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers. Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ( $32 million decrease) or the regulatory liability for income taxes ( $16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income. Comprehensive Income Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2018 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, April 1, 2018 $50,194 ($605,491 ) ($6,201 ) ($561,498 ) Other comprehensive income (loss) before reclassifications (62,981 ) — (7,509 ) (70,490 ) Amounts reclassified from accumulated other comprehensive income (loss) (2,087 ) 15,565 4,868 18,346 Net other comprehensive income (loss) for the period (65,068 ) 15,565 (2,641 ) (52,144 ) Ending balance, June 30, 2018 ($14,874 ) ($589,926 ) ($8,842 ) ($613,642 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2017 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Foreign currency translation Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, April 1, 2017 $3,465 ($460,814 ) $467,561 $748 $10,960 Other comprehensive income (loss) before reclassifications 28,057 — 33,870 (748 ) 61,179 Amounts reclassified from accumulated other comprehensive income (loss) (8,108 ) 10,916 (22,174 ) — (19,366 ) Net other comprehensive income (loss) for the period 19,949 10,916 11,696 (748 ) 41,813 Ending balance, June 30, 2017 $23,414 ($449,898 ) $479,257 $— $52,773 The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2018 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Ending balance, December 31, 2017 ($37,477 ) ($531,099 ) $545,045 ($23,531 ) Implementation of accounting standards — — (632,617 ) (632,617 ) Beginning balance, January 1, 2018 ($37,477 ) ($531,099 ) ($87,572 ) ($656,148 ) Other comprehensive income (loss) before reclassifications 8,585 — (43,785 ) (35,200 ) Amounts reclassified from accumulated other comprehensive income (loss) 21,774 32,139 8,288 62,201 Net other comprehensive income (loss) for the period 30,359 32,139 (35,497 ) 27,001 Reclassification pursuant to ASU 2018-02 (7,756 ) (90,966 ) 114,227 15,505 Ending balance, June 30, 2018 ($14,874 ) ($589,926 ) ($8,842 ) ($613,642 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2017 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Foreign currency translation Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, January 1, 2017 $3,993 ($469,446 ) $429,734 $748 ($34,971 ) Other comprehensive income (loss) before reclassifications 60,665 — 73,742 (748 ) 133,659 Amounts reclassified from accumulated other comprehensive income (loss) (41,244 ) 19,548 (24,219 ) — (45,915 ) Net other comprehensive income (loss) for the period 19,421 19,548 49,523 (748 ) 87,744 Ending balance, June 30, 2017 $23,414 ($449,898 ) $479,257 $— $52,773 The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended June 30, 2018 and 2017: Pension and Other 2018 2017 (In Thousands) Beginning balance, April 1, ($56,950 ) ($48,812 ) Amounts reclassified from accumulated other (501 ) (310 ) Net other comprehensive income (loss) for the period (501 ) (310 ) Ending balance, June 30, ($57,451 ) ($49,122 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the six months ended June 30, 2018 and 2017: Pension and Other 2018 2017 (In Thousands) Beginning balance, January 1, ($46,400 ) ($48,442 ) Amounts reclassified from accumulated other (1,002 ) (680 ) Net other comprehensive income (loss) for the period (1,002 ) (680 ) Reclassification pursuant to ASU 2018-02 (10,049 ) — Ending balance, June 30, ($57,451 ) ($49,122 ) Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Cash flow hedges net unrealized gain (loss) Power contracts $2,735 $12,695 Competitive business operating revenues Interest rate swaps (93 ) (219 ) Miscellaneous - net Total realized gain (loss) on cash flow hedges 2,642 12,476 (555 ) (4,368 ) Income taxes Total realized gain (loss) on cash flow hedges (net of tax) $2,087 $8,108 Pension and other postretirement liabilities Amortization of prior-service credit $5,424 $6,564 (a) Amortization of loss (24,808 ) (21,554 ) (a) Settlement loss (406 ) (1,765 ) (a) Total amortization (19,790 ) (16,755 ) 4,225 5,839 Income taxes Total amortization (net of tax) ($15,565 ) ($10,916 ) Net unrealized investment gain (loss) Realized gain (loss) ($7,702 ) $43,479 Interest and investment income 2,834 (21,305 ) Income taxes Total realized investment gain (loss) (net of tax) ($4,868 ) $22,174 Total reclassifications for the period (net of tax) ($18,346 ) $19,366 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the six months ended June 30, 2018 and 2017 are as follows: Amounts reclassified from AOCI Income Statement Location 2018 2017 (In Thousands) Cash flow hedges net unrealized gain (loss) Power contracts ($27,347 ) $63,922 Competitive business operating revenues Interest rate swaps (215 ) (469 ) Miscellaneous - net Total realized gain (loss) on cash flow hedges (27,562 ) 63,453 5,788 (22,209 ) Income taxes Total realized gain (loss) on cash flow hedges (net of tax) ($21,774 ) $41,244 Pension and other postretirement liabilities Amortization of prior-service credit $10,850 $13,126 (a) Amortization of loss (49,760 ) (43,125 ) (a) Settlement loss (2,022 ) (1,765 ) (a) Total amortization (40,932 ) (31,764 ) 8,793 12,216 Income taxes Total amortization (net of tax) ($32,139 ) ($19,548 ) Net unrealized investment gain (loss) Realized gain (loss) ($13,114 ) $47,489 Interest and investment income 4,826 (23,270 ) Income taxes Total realized investment gain (loss) (net of tax) ($8,288 ) $24,219 Total reclassifications for the period (net of tax) ($62,201 ) $45,915 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Pension and other postretirement liabilities Amortization of prior-service credit $1,934 $1,934 (a) Amortization of loss (1,256 ) (1,332 ) (a) Total amortization 678 602 (177 ) (292 ) Income taxes Total amortization (net of tax) 501 310 Total reclassifications for the period (net of tax) $501 $310 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the six months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Pension and other postretirement liabilities Amortization of prior-service credit $3,868 $3,868 (a) Amortization of loss (2,513 ) (2,664 ) (a) Total amortization 1,355 1,204 (353 ) (524 ) Income taxes Total amortization (net of tax) 1,002 680 Total reclassifications for the period (net of tax) $1,002 $680 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. |
Entergy Louisiana [Member] | |
Equity | EQUITY (Entergy Corporation and Entergy Louisiana) Common Stock Earnings per Share The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements: For the Three Months Ended June 30, 2018 2017 (In Millions, Except Per Share Data) Basic earnings per share Income Shares $/share Income Shares $/share Net income attributable to Entergy Corporation $245.4 180.8 $1.36 $409.9 179.5 $2.28 Average dilutive effect of: Stock options 0.3 — 0.2 — Other equity plans 0.7 (0.01 ) 0.5 (0.01 ) Equity forwards 1.2 (0.01 ) — — Diluted earnings per share $245.4 183.0 $1.34 $409.9 180.2 $2.27 The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the three months ended June 30, 2018 and approximately 2.5 million for the three months ended June 30, 2017 . For the Six Months Ended June 30, 2018 2017 (In Millions, Except Per Share Data) Basic earnings per share Income Shares $/share Income Shares $/share Net income attributable to Entergy Corporation $378.2 180.8 $2.09 $492.5 179.4 $2.75 Average dilutive effect of: Stock options 0.3 — 0.2 — Other equity plans 0.5 — 0.4 (0.01 ) Equity forwards 0.6 (0.01 ) — — Diluted earnings per share $378.2 182.2 $2.08 $492.5 180.0 $2.74 The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the six months ended June 30, 2018 and approximately 3.7 million for the six months ended June 30, 2017 . Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K. Equity Forward Sale Agreements In June 2018, Entergy marketed an equity offering of 15.3 million shares of common stock. In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with various investment banks. No amounts have or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the equity forwards occur. The equity forwards require Entergy to, at its election prior to June 7, 2019, either (i) physically settle the transactions by issuing the total of 15.3 million shares of its common stock to the investment banks in exchange for net proceeds at the then-applicable forward sale price specified by the agreements (initially $74.45 per share) or (ii) net settle the transactions in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreements. If Entergy elects physical settlement of the forward sale agreements, it expects to use the net proceeds for general corporate purposes, which may include repayment of commercial paper, outstanding loans under Entergy's revolving credit facility, or other debt. Until settlement of the equity forwards, earnings per share dilution resulting from the agreements, if any, will be determined under the treasury stock method. Share dilution occurs when the average market price of Entergy’s common stock is higher than the average forward sales price. If Entergy had elected to net share settle the forward sale agreements as of June 30, 2018, Entergy would have been required to deliver 1.2 million shares. Treasury Stock During the six months ended June 30, 2018 , Entergy Corporation issued 323,364 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the six months ended June 30, 2018 . Retained Earnings On July 27, 2018, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.89 per share, payable on September 4, 2018, to holders of record as of August 9, 2018. Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment increasing retained earnings and reducing accumulated other comprehensive income by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. See Note 9 to the financial statements herein for further discussion of effects of the new standard. Entergy implemented ASU No. 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory” effective January 1, 2018. The ASU requires entities to recognize the income tax consequences of intra-entity asset transfers, other than inventory, at the time the transfer occurs. Entergy implemented this standard using a modified retrospective method, and recorded an adjustment decreasing retained earnings by $56 million as of January 1, 2018 for the cumulative effect of recording deferred tax assets on previously-recognized intra-entity asset transfers. Entergy adopted ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” in the first quarter 2018. The ASU allows a one-time reclassification from accumulated other comprehensive income to retained earnings for certain tax effects resulting from the Tax Cuts and Jobs Act that would otherwise be stranded in accumulated other comprehensive income. Entergy’s policy for releasing income tax effects from accumulated other comprehensive income for available-for-sale securities is to use the portfolio approach. Entergy elected to reclassify the $15.5 million of stranded tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act to retained earnings ( $32 million decrease) or the regulatory liability for income taxes ( $16.5 million increase). Entergy’s reclassification only includes the effect of the change in the federal corporate income tax rate on accumulated other comprehensive income. Comprehensive Income Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2018 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, April 1, 2018 $50,194 ($605,491 ) ($6,201 ) ($561,498 ) Other comprehensive income (loss) before reclassifications (62,981 ) — (7,509 ) (70,490 ) Amounts reclassified from accumulated other comprehensive income (loss) (2,087 ) 15,565 4,868 18,346 Net other comprehensive income (loss) for the period (65,068 ) 15,565 (2,641 ) (52,144 ) Ending balance, June 30, 2018 ($14,874 ) ($589,926 ) ($8,842 ) ($613,642 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2017 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Foreign currency translation Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, April 1, 2017 $3,465 ($460,814 ) $467,561 $748 $10,960 Other comprehensive income (loss) before reclassifications 28,057 — 33,870 (748 ) 61,179 Amounts reclassified from accumulated other comprehensive income (loss) (8,108 ) 10,916 (22,174 ) — (19,366 ) Net other comprehensive income (loss) for the period 19,949 10,916 11,696 (748 ) 41,813 Ending balance, June 30, 2017 $23,414 ($449,898 ) $479,257 $— $52,773 The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2018 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Ending balance, December 31, 2017 ($37,477 ) ($531,099 ) $545,045 ($23,531 ) Implementation of accounting standards — — (632,617 ) (632,617 ) Beginning balance, January 1, 2018 ($37,477 ) ($531,099 ) ($87,572 ) ($656,148 ) Other comprehensive income (loss) before reclassifications 8,585 — (43,785 ) (35,200 ) Amounts reclassified from accumulated other comprehensive income (loss) 21,774 32,139 8,288 62,201 Net other comprehensive income (loss) for the period 30,359 32,139 (35,497 ) 27,001 Reclassification pursuant to ASU 2018-02 (7,756 ) (90,966 ) 114,227 15,505 Ending balance, June 30, 2018 ($14,874 ) ($589,926 ) ($8,842 ) ($613,642 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2017 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Foreign currency translation Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, January 1, 2017 $3,993 ($469,446 ) $429,734 $748 ($34,971 ) Other comprehensive income (loss) before reclassifications 60,665 — 73,742 (748 ) 133,659 Amounts reclassified from accumulated other comprehensive income (loss) (41,244 ) 19,548 (24,219 ) — (45,915 ) Net other comprehensive income (loss) for the period 19,421 19,548 49,523 (748 ) 87,744 Ending balance, June 30, 2017 $23,414 ($449,898 ) $479,257 $— $52,773 The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended June 30, 2018 and 2017: Pension and Other 2018 2017 (In Thousands) Beginning balance, April 1, ($56,950 ) ($48,812 ) Amounts reclassified from accumulated other (501 ) (310 ) Net other comprehensive income (loss) for the period (501 ) (310 ) Ending balance, June 30, ($57,451 ) ($49,122 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the six months ended June 30, 2018 and 2017: Pension and Other 2018 2017 (In Thousands) Beginning balance, January 1, ($46,400 ) ($48,442 ) Amounts reclassified from accumulated other (1,002 ) (680 ) Net other comprehensive income (loss) for the period (1,002 ) (680 ) Reclassification pursuant to ASU 2018-02 (10,049 ) — Ending balance, June 30, ($57,451 ) ($49,122 ) Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Cash flow hedges net unrealized gain (loss) Power contracts $2,735 $12,695 Competitive business operating revenues Interest rate swaps (93 ) (219 ) Miscellaneous - net Total realized gain (loss) on cash flow hedges 2,642 12,476 (555 ) (4,368 ) Income taxes Total realized gain (loss) on cash flow hedges (net of tax) $2,087 $8,108 Pension and other postretirement liabilities Amortization of prior-service credit $5,424 $6,564 (a) Amortization of loss (24,808 ) (21,554 ) (a) Settlement loss (406 ) (1,765 ) (a) Total amortization (19,790 ) (16,755 ) 4,225 5,839 Income taxes Total amortization (net of tax) ($15,565 ) ($10,916 ) Net unrealized investment gain (loss) Realized gain (loss) ($7,702 ) $43,479 Interest and investment income 2,834 (21,305 ) Income taxes Total realized investment gain (loss) (net of tax) ($4,868 ) $22,174 Total reclassifications for the period (net of tax) ($18,346 ) $19,366 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the six months ended June 30, 2018 and 2017 are as follows: Amounts reclassified from AOCI Income Statement Location 2018 2017 (In Thousands) Cash flow hedges net unrealized gain (loss) Power contracts ($27,347 ) $63,922 Competitive business operating revenues Interest rate swaps (215 ) (469 ) Miscellaneous - net Total realized gain (loss) on cash flow hedges (27,562 ) 63,453 5,788 (22,209 ) Income taxes Total realized gain (loss) on cash flow hedges (net of tax) ($21,774 ) $41,244 Pension and other postretirement liabilities Amortization of prior-service credit $10,850 $13,126 (a) Amortization of loss (49,760 ) (43,125 ) (a) Settlement loss (2,022 ) (1,765 ) (a) Total amortization (40,932 ) (31,764 ) 8,793 12,216 Income taxes Total amortization (net of tax) ($32,139 ) ($19,548 ) Net unrealized investment gain (loss) Realized gain (loss) ($13,114 ) $47,489 Interest and investment income 4,826 (23,270 ) Income taxes Total realized investment gain (loss) (net of tax) ($8,288 ) $24,219 Total reclassifications for the period (net of tax) ($62,201 ) $45,915 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Pension and other postretirement liabilities Amortization of prior-service credit $1,934 $1,934 (a) Amortization of loss (1,256 ) (1,332 ) (a) Total amortization 678 602 (177 ) (292 ) Income taxes Total amortization (net of tax) 501 310 Total reclassifications for the period (net of tax) $501 $310 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the six months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Pension and other postretirement liabilities Amortization of prior-service credit $3,868 $3,868 (a) Amortization of loss (2,513 ) (2,664 ) (a) Total amortization 1,355 1,204 (353 ) (524 ) Income taxes Total amortization (net of tax) 1,002 680 Total reclassifications for the period (net of tax) $1,002 $680 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. |
Revolving Credit Facilities, Li
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022. 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 six months ended June 30, 2018 was 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, 2018 . Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,500 $390 $6 $3,104 Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion . At June 30, 2018 , Entergy Corporation had approximately $1,945 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2018 was 2.31% . Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2019. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— Entergy Nuclear Vermont Yankee Credit Facility Entergy Nuclear Vermont Yankee has a credit facility guaranteed by Entergy Corporation with a borrowing capacity of $145 million that expires in November 2020. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2018 , $108 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2018 was 3.26% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Retirements (Entergy Arkansas) In May 2018, Entergy Arkansas issued $250 million of 4.00% Series first mortgage bonds due June 2028. Entergy Arkansas expects to use the proceeds, together with other funds, to redeem $9.4 million of its 4.72% Series preferred stock, $7 million of its 4.32% Series preferred stock, and $15 million of its 4.56% Series preferred stock; and for general corporate purposes. (Entergy Louisiana) In March 2018, Entergy Louisiana issued $750 million of 4.00% collateral trust mortgage bonds due March 2033. Entergy Louisiana used a portion of the proceeds to repay at maturity its $375 million of 6.0% Series first mortgage bonds due May 2018; to repay borrowings from the money pool; and to repay borrowings under its $350 million credit facility. The remaining proceeds, together with other funds, are being used to finance the construction of the Lake Charles Power Station and St. Charles Power Station; and for general corporate purposes. (System Energy) In March 2018 the System Energy nuclear fuel trust variable interest entity issued $100 million of 3.42% Series J notes due April 2021. The System Energy nuclear fuel trust variable interest entity used the proceeds to purchase additional nuclear fuel. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy Arkansas [Member] | |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022. 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 six months ended June 30, 2018 was 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, 2018 . Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,500 $390 $6 $3,104 Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion . At June 30, 2018 , Entergy Corporation had approximately $1,945 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2018 was 2.31% . Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2019. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— Entergy Nuclear Vermont Yankee Credit Facility Entergy Nuclear Vermont Yankee has a credit facility guaranteed by Entergy Corporation with a borrowing capacity of $145 million that expires in November 2020. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2018 , $108 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2018 was 3.26% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Retirements (Entergy Arkansas) In May 2018, Entergy Arkansas issued $250 million of 4.00% Series first mortgage bonds due June 2028. Entergy Arkansas expects to use the proceeds, together with other funds, to redeem $9.4 million of its 4.72% Series preferred stock, $7 million of its 4.32% Series preferred stock, and $15 million of its 4.56% Series preferred stock; and for general corporate purposes. (Entergy Louisiana) In March 2018, Entergy Louisiana issued $750 million of 4.00% collateral trust mortgage bonds due March 2033. Entergy Louisiana used a portion of the proceeds to repay at maturity its $375 million of 6.0% Series first mortgage bonds due May 2018; to repay borrowings from the money pool; and to repay borrowings under its $350 million credit facility. The remaining proceeds, together with other funds, are being used to finance the construction of the Lake Charles Power Station and St. Charles Power Station; and for general corporate purposes. (System Energy) In March 2018 the System Energy nuclear fuel trust variable interest entity issued $100 million of 3.42% Series J notes due April 2021. The System Energy nuclear fuel trust variable interest entity used the proceeds to purchase additional nuclear fuel. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy Louisiana [Member] | |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022. 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 six months ended June 30, 2018 was 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, 2018 . Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,500 $390 $6 $3,104 Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion . At June 30, 2018 , Entergy Corporation had approximately $1,945 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2018 was 2.31% . Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2019. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— Entergy Nuclear Vermont Yankee Credit Facility Entergy Nuclear Vermont Yankee has a credit facility guaranteed by Entergy Corporation with a borrowing capacity of $145 million that expires in November 2020. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2018 , $108 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2018 was 3.26% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Retirements (Entergy Arkansas) In May 2018, Entergy Arkansas issued $250 million of 4.00% Series first mortgage bonds due June 2028. Entergy Arkansas expects to use the proceeds, together with other funds, to redeem $9.4 million of its 4.72% Series preferred stock, $7 million of its 4.32% Series preferred stock, and $15 million of its 4.56% Series preferred stock; and for general corporate purposes. (Entergy Louisiana) In March 2018, Entergy Louisiana issued $750 million of 4.00% collateral trust mortgage bonds due March 2033. Entergy Louisiana used a portion of the proceeds to repay at maturity its $375 million of 6.0% Series first mortgage bonds due May 2018; to repay borrowings from the money pool; and to repay borrowings under its $350 million credit facility. The remaining proceeds, together with other funds, are being used to finance the construction of the Lake Charles Power Station and St. Charles Power Station; and for general corporate purposes. (System Energy) In March 2018 the System Energy nuclear fuel trust variable interest entity issued $100 million of 3.42% Series J notes due April 2021. The System Energy nuclear fuel trust variable interest entity used the proceeds to purchase additional nuclear fuel. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy Mississippi [Member] | |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022. 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 six months ended June 30, 2018 was 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, 2018 . Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,500 $390 $6 $3,104 Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion . At June 30, 2018 , Entergy Corporation had approximately $1,945 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2018 was 2.31% . Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2019. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— Entergy Nuclear Vermont Yankee Credit Facility Entergy Nuclear Vermont Yankee has a credit facility guaranteed by Entergy Corporation with a borrowing capacity of $145 million that expires in November 2020. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2018 , $108 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2018 was 3.26% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Retirements (Entergy Arkansas) In May 2018, Entergy Arkansas issued $250 million of 4.00% Series first mortgage bonds due June 2028. Entergy Arkansas expects to use the proceeds, together with other funds, to redeem $9.4 million of its 4.72% Series preferred stock, $7 million of its 4.32% Series preferred stock, and $15 million of its 4.56% Series preferred stock; and for general corporate purposes. (Entergy Louisiana) In March 2018, Entergy Louisiana issued $750 million of 4.00% collateral trust mortgage bonds due March 2033. Entergy Louisiana used a portion of the proceeds to repay at maturity its $375 million of 6.0% Series first mortgage bonds due May 2018; to repay borrowings from the money pool; and to repay borrowings under its $350 million credit facility. The remaining proceeds, together with other funds, are being used to finance the construction of the Lake Charles Power Station and St. Charles Power Station; and for general corporate purposes. (System Energy) In March 2018 the System Energy nuclear fuel trust variable interest entity issued $100 million of 3.42% Series J notes due April 2021. The System Energy nuclear fuel trust variable interest entity used the proceeds to purchase additional nuclear fuel. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy New Orleans [Member] | |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022. 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 six months ended June 30, 2018 was 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, 2018 . Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,500 $390 $6 $3,104 Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion . At June 30, 2018 , Entergy Corporation had approximately $1,945 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2018 was 2.31% . Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2019. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— Entergy Nuclear Vermont Yankee Credit Facility Entergy Nuclear Vermont Yankee has a credit facility guaranteed by Entergy Corporation with a borrowing capacity of $145 million that expires in November 2020. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2018 , $108 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2018 was 3.26% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Retirements (Entergy Arkansas) In May 2018, Entergy Arkansas issued $250 million of 4.00% Series first mortgage bonds due June 2028. Entergy Arkansas expects to use the proceeds, together with other funds, to redeem $9.4 million of its 4.72% Series preferred stock, $7 million of its 4.32% Series preferred stock, and $15 million of its 4.56% Series preferred stock; and for general corporate purposes. (Entergy Louisiana) In March 2018, Entergy Louisiana issued $750 million of 4.00% collateral trust mortgage bonds due March 2033. Entergy Louisiana used a portion of the proceeds to repay at maturity its $375 million of 6.0% Series first mortgage bonds due May 2018; to repay borrowings from the money pool; and to repay borrowings under its $350 million credit facility. The remaining proceeds, together with other funds, are being used to finance the construction of the Lake Charles Power Station and St. Charles Power Station; and for general corporate purposes. (System Energy) In March 2018 the System Energy nuclear fuel trust variable interest entity issued $100 million of 3.42% Series J notes due April 2021. The System Energy nuclear fuel trust variable interest entity used the proceeds to purchase additional nuclear fuel. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy Texas [Member] | |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022. 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 six months ended June 30, 2018 was 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, 2018 . Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,500 $390 $6 $3,104 Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion . At June 30, 2018 , Entergy Corporation had approximately $1,945 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2018 was 2.31% . Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2019. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— Entergy Nuclear Vermont Yankee Credit Facility Entergy Nuclear Vermont Yankee has a credit facility guaranteed by Entergy Corporation with a borrowing capacity of $145 million that expires in November 2020. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2018 , $108 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2018 was 3.26% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Retirements (Entergy Arkansas) In May 2018, Entergy Arkansas issued $250 million of 4.00% Series first mortgage bonds due June 2028. Entergy Arkansas expects to use the proceeds, together with other funds, to redeem $9.4 million of its 4.72% Series preferred stock, $7 million of its 4.32% Series preferred stock, and $15 million of its 4.56% Series preferred stock; and for general corporate purposes. (Entergy Louisiana) In March 2018, Entergy Louisiana issued $750 million of 4.00% collateral trust mortgage bonds due March 2033. Entergy Louisiana used a portion of the proceeds to repay at maturity its $375 million of 6.0% Series first mortgage bonds due May 2018; to repay borrowings from the money pool; and to repay borrowings under its $350 million credit facility. The remaining proceeds, together with other funds, are being used to finance the construction of the Lake Charles Power Station and St. Charles Power Station; and for general corporate purposes. (System Energy) In March 2018 the System Energy nuclear fuel trust variable interest entity issued $100 million of 3.42% Series J notes due April 2021. The System Energy nuclear fuel trust variable interest entity used the proceeds to purchase additional nuclear fuel. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
System Energy [Member] | |
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt | REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022. 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 six months ended June 30, 2018 was 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, 2018 . Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,500 $390 $6 $3,104 Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Utility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the facility maturity date may occur. Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion . At June 30, 2018 , Entergy Corporation had approximately $1,945 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2018 was 2.31% . Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. The commitment fees on the credit facilities range from 0.075% to 0.275% of the undrawn commitment amount. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant. In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. The current FERC-authorized limits are effective through October 31, 2019. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are inter-company borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— Entergy Nuclear Vermont Yankee Credit Facility Entergy Nuclear Vermont Yankee has a credit facility guaranteed by Entergy Corporation with a borrowing capacity of $145 million that expires in November 2020. Entergy Nuclear Vermont Yankee does not have the ability to issue letters of credit against the credit facility. This facility provides working capital to Entergy Nuclear Vermont Yankee for general business purposes including, without limitation, the decommissioning of Vermont Yankee. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2018 , $108 million in cash borrowings were outstanding under the credit facility. The weighted average interest rate for the six months ended June 30, 2018 was 3.26% on the drawn portion of the facility. Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. The commitment fees on the credit facilities are 0.10% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million In accordance with regulatory treatment, interest on the nuclear fuel company variable interest entities’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense. Debt Issuances and Retirements (Entergy Arkansas) In May 2018, Entergy Arkansas issued $250 million of 4.00% Series first mortgage bonds due June 2028. Entergy Arkansas expects to use the proceeds, together with other funds, to redeem $9.4 million of its 4.72% Series preferred stock, $7 million of its 4.32% Series preferred stock, and $15 million of its 4.56% Series preferred stock; and for general corporate purposes. (Entergy Louisiana) In March 2018, Entergy Louisiana issued $750 million of 4.00% collateral trust mortgage bonds due March 2033. Entergy Louisiana used a portion of the proceeds to repay at maturity its $375 million of 6.0% Series first mortgage bonds due May 2018; to repay borrowings from the money pool; and to repay borrowings under its $350 million credit facility. The remaining proceeds, together with other funds, are being used to finance the construction of the Lake Charles Power Station and St. Charles Power Station; and for general corporate purposes. (System Energy) In March 2018 the System Energy nuclear fuel trust variable interest entity issued $100 million of 3.42% Series J notes due April 2021. The System Energy nuclear fuel trust variable interest entity used the proceeds to purchase additional nuclear fuel. Fair Value The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Stock-Based Compensation | STOCK-BASED COMPENSATION (Entergy Corporation) Entergy grants stock and stock-based awards, which are described more fully in Note 12 to the financial statements in the Form 10-K. Awards under Entergy’s plans generally vest over three years. Stock Options Entergy granted options on 687,400 shares of its common stock under the 2015 Equity Ownership Plan during the first quarter 2018 with a fair value of $6.99 per option. As of June 30, 2018 , there were options on 4,370,733 shares of common stock outstanding with a weighted-average exercise price of $74.40 . The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the positive difference between the weighted average exercise price of the stock options granted and Entergy Corporation’s common stock price as of June 30, 2018 . The aggregate intrinsic value of the stock options outstanding as of June 30, 2018 was $27.9 million . The following table includes financial information for outstanding stock options for the three months ended June 30, 2018 and 2017 : 2018 2017 (In Millions) Compensation expense included in Entergy’s net income $1.1 $1.1 Tax benefit recognized in Entergy’s net income $0.3 $0.4 Compensation cost capitalized as part of fixed assets and inventory $0.2 $0.2 The following table includes financial information for outstanding stock options for the six months ended June 30, 2018 and 2017 : 2018 2017 (In Millions) Compensation expense included in Entergy’s net income $2.2 $2.2 Tax benefit recognized in Entergy’s net income $0.6 $0.8 Compensation cost capitalized as part of fixed assets and inventory $0.4 $0.4 Other Equity Awards In January 2018 the Board approved and Entergy granted 333,850 restricted stock awards and 182,408 long-term incentive awards under the 2015 Equity Ownership Plan. The restricted stock awards were made effective as of January 25, 2018 and were valued at $78.08 per share, which was the closing price of Entergy’s common stock on that date. One-third of the restricted stock awards will vest upon each anniversary of the grant date. In addition, long-term incentive awards were granted in the form of performance units that represent the value of, and are settled with, one share of Entergy Corporation common stock at the end of the three-year performance period, plus dividends accrued during the performance period on the number of performance units earned. Beginning with the 2018-2020 performance period, a cumulative utility earnings metric has been added to the Long-Term Performance Unit Program to supplement the relative total shareholder return measure that historically has been used in this program with each measure equally weighted. The performance units were granted effective as of January 25, 2018 and half were valued at $78.08 per share, the closing price of Entergy’s common stock on that date; and half were valued at $86.75 per share based on various factors, primarily market conditions. See Note 12 to the financial statements in the Form 10-K for a description of the Long-Term Performance Unit Program. Shares of restricted stock have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the 3 -year vesting period. Performance units have the same dividend rights as shares of Entergy common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the 3 -year vesting period. The following table includes financial information for other outstanding equity awards for the three months ended June 30, 2018 and 2017: 2018 2017 (In Millions) Compensation expense included in Entergy’s net income $8.7 $8.2 Tax benefit recognized in Entergy’s net income $2.2 $3.2 Compensation cost capitalized as part of fixed assets and inventory $2.5 $2.2 The following table includes financial information for other outstanding equity awards for the six months ended June 30, 2018 and 2017 : 2018 2017 (In Millions) Compensation expense included in Entergy’s net income $17.5 $16.4 Tax benefit recognized in Entergy’s net income $4.4 $6.3 Compensation cost capitalized as part of fixed assets and inventory $4.8 $4.2 |
Retirement And Other Postretire
Retirement And Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy implemented ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” effective January 1, 2018. The ASU requires entities to report the service cost component of defined benefit pension cost and postretirement benefit cost (net benefit cost) in the same line item as other compensation costs arising from services rendered during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. The amendment regarding the presentation of net benefit cost was required to be applied retrospectively for all periods presented. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization on a prospective basis. In accordance with the regulatory treatment of net benefit cost of the Registrant Subsidiaries, a regulatory asset/liability will be recorded in other regulatory assets/liabilities for the non-service cost components of net benefit cost that would have been capitalized. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the three months ended June 30, 2017, with no change in net income, of $25 million for Entergy, $3.6 million for Entergy Arkansas, $6.2 million for Entergy Louisiana, $0.5 million for Entergy Mississippi, $0.2 million for Entergy New Orleans, $14 thousand for Entergy Texas, and $2.3 million for System Energy. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the six months ended June 30, 2017, with no change in net income, of $46 million for Entergy, $6.4 million for Entergy Arkansas, $12.3 million for Entergy Louisiana, $1.1 million for Entergy Mississippi, $0.4 million for Entergy New Orleans, ($0.2) million for Entergy Texas, and $3.3 million for System Energy. The retroactive effect of the change for the year ended December 31, 2017 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $108 million for Entergy, $13.7 million for Entergy Arkansas, $27.8 million for Entergy Louisiana, $2.7 million for Entergy Mississippi, $1.3 million for Entergy New Orleans, $0.2 million for Entergy Texas, and $6.2 million for System Energy. The retroactive effect of the change for the year ended December 31, 2016 would be decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income, with no change in net income, of $71 million for Entergy, $13.4 million for Entergy Arkansas, $26.1 million for Entergy Louisiana, $2.4 million for Entergy Mississippi, $1 million for Entergy New Orleans, ($1.1) million for Entergy Texas, and $5.1 million for System Energy. The retroactive effect of the change for the year ended December 31, 2015 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $148 million for Entergy, $30.7 million for Entergy Arkansas, $50.7 million for Entergy Louisiana, $6.3 million for Entergy Mississippi, $4 million for Entergy New Orleans, $4 million for Entergy Texas, and $10.2 million for System Energy. Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $38,752 $33,410 Interest cost on projected benefit obligation 66,854 65,206 Expected return on assets (110,535 ) (102,056 ) Amortization of prior service cost 99 65 Amortization of loss 68,526 56,930 Net pension costs $63,696 $53,555 Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $77,504 $66,820 Interest cost on projected benefit obligation 133,708 130,412 Expected return on assets (221,070 ) (204,112 ) Amortization of prior service cost 198 130 Amortization of loss 137,052 113,860 Net pension costs $127,392 $107,110 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 Non-Qualified Net Pension Cost Entergy recognized $6.6 million and $8.5 million in pension cost for its non-qualified pension plans in the second quarters of 2018 and 2017 , respectively. Reflected in the pension cost for non-qualified pension plans in the second quarters of 2018 and 2017 were settlement charges of $2.4 million and $4 million , respectively, related to the payment of lump sum benefits out of the plan. Entergy recognized $15.5 million and $13.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2018 and 2017, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2018 and 2017 were settlement charges of $6.8 million and $4 million , respectively, related to the payment of lump sum benefits out of this plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 Reflected in Entergy Arkansas’s non-qualified pension costs for the six months ended June 30, 2018 and 2017, were settlement charges of $22 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the six months ended June 30, 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost Entergy’s other postretirement benefit cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $6,782 $6,729 Interest cost on accumulated postretirement benefit obligation (APBO) 12,681 13,960 Expected return on assets (10,373 ) (9,408 ) Amortization of prior service credit (9,251 ) (10,356 ) Amortization of loss 3,432 5,476 Net other postretirement benefit cost $3,271 $6,401 Entergy’s other postretirement benefit cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $13,564 $13,458 Interest cost on accumulated postretirement benefit obligation (APBO) 25,362 27,920 Expected return on assets (20,746 ) (18,816 ) Amortization of prior service credit (18,502 ) (20,712 ) Amortization of loss 6,864 10,952 Net other postretirement benefit cost $6,542 $12,802 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 Employer Contributions Based on current assumptions, Entergy expects to contribute $352.1 million to its qualified pension plans in 2018. As of June 30, 2018 , Entergy had contributed $159.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy Arkansas [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy implemented ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” effective January 1, 2018. The ASU requires entities to report the service cost component of defined benefit pension cost and postretirement benefit cost (net benefit cost) in the same line item as other compensation costs arising from services rendered during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. The amendment regarding the presentation of net benefit cost was required to be applied retrospectively for all periods presented. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization on a prospective basis. In accordance with the regulatory treatment of net benefit cost of the Registrant Subsidiaries, a regulatory asset/liability will be recorded in other regulatory assets/liabilities for the non-service cost components of net benefit cost that would have been capitalized. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the three months ended June 30, 2017, with no change in net income, of $25 million for Entergy, $3.6 million for Entergy Arkansas, $6.2 million for Entergy Louisiana, $0.5 million for Entergy Mississippi, $0.2 million for Entergy New Orleans, $14 thousand for Entergy Texas, and $2.3 million for System Energy. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the six months ended June 30, 2017, with no change in net income, of $46 million for Entergy, $6.4 million for Entergy Arkansas, $12.3 million for Entergy Louisiana, $1.1 million for Entergy Mississippi, $0.4 million for Entergy New Orleans, ($0.2) million for Entergy Texas, and $3.3 million for System Energy. The retroactive effect of the change for the year ended December 31, 2017 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $108 million for Entergy, $13.7 million for Entergy Arkansas, $27.8 million for Entergy Louisiana, $2.7 million for Entergy Mississippi, $1.3 million for Entergy New Orleans, $0.2 million for Entergy Texas, and $6.2 million for System Energy. The retroactive effect of the change for the year ended December 31, 2016 would be decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income, with no change in net income, of $71 million for Entergy, $13.4 million for Entergy Arkansas, $26.1 million for Entergy Louisiana, $2.4 million for Entergy Mississippi, $1 million for Entergy New Orleans, ($1.1) million for Entergy Texas, and $5.1 million for System Energy. The retroactive effect of the change for the year ended December 31, 2015 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $148 million for Entergy, $30.7 million for Entergy Arkansas, $50.7 million for Entergy Louisiana, $6.3 million for Entergy Mississippi, $4 million for Entergy New Orleans, $4 million for Entergy Texas, and $10.2 million for System Energy. Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $38,752 $33,410 Interest cost on projected benefit obligation 66,854 65,206 Expected return on assets (110,535 ) (102,056 ) Amortization of prior service cost 99 65 Amortization of loss 68,526 56,930 Net pension costs $63,696 $53,555 Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $77,504 $66,820 Interest cost on projected benefit obligation 133,708 130,412 Expected return on assets (221,070 ) (204,112 ) Amortization of prior service cost 198 130 Amortization of loss 137,052 113,860 Net pension costs $127,392 $107,110 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 Non-Qualified Net Pension Cost Entergy recognized $6.6 million and $8.5 million in pension cost for its non-qualified pension plans in the second quarters of 2018 and 2017 , respectively. Reflected in the pension cost for non-qualified pension plans in the second quarters of 2018 and 2017 were settlement charges of $2.4 million and $4 million , respectively, related to the payment of lump sum benefits out of the plan. Entergy recognized $15.5 million and $13.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2018 and 2017, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2018 and 2017 were settlement charges of $6.8 million and $4 million , respectively, related to the payment of lump sum benefits out of this plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 Reflected in Entergy Arkansas’s non-qualified pension costs for the six months ended June 30, 2018 and 2017, were settlement charges of $22 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the six months ended June 30, 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost Entergy’s other postretirement benefit cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $6,782 $6,729 Interest cost on accumulated postretirement benefit obligation (APBO) 12,681 13,960 Expected return on assets (10,373 ) (9,408 ) Amortization of prior service credit (9,251 ) (10,356 ) Amortization of loss 3,432 5,476 Net other postretirement benefit cost $3,271 $6,401 Entergy’s other postretirement benefit cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $13,564 $13,458 Interest cost on accumulated postretirement benefit obligation (APBO) 25,362 27,920 Expected return on assets (20,746 ) (18,816 ) Amortization of prior service credit (18,502 ) (20,712 ) Amortization of loss 6,864 10,952 Net other postretirement benefit cost $6,542 $12,802 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 Employer Contributions Based on current assumptions, Entergy expects to contribute $352.1 million to its qualified pension plans in 2018. As of June 30, 2018 , Entergy had contributed $159.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy Louisiana [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy implemented ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” effective January 1, 2018. The ASU requires entities to report the service cost component of defined benefit pension cost and postretirement benefit cost (net benefit cost) in the same line item as other compensation costs arising from services rendered during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. The amendment regarding the presentation of net benefit cost was required to be applied retrospectively for all periods presented. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization on a prospective basis. In accordance with the regulatory treatment of net benefit cost of the Registrant Subsidiaries, a regulatory asset/liability will be recorded in other regulatory assets/liabilities for the non-service cost components of net benefit cost that would have been capitalized. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the three months ended June 30, 2017, with no change in net income, of $25 million for Entergy, $3.6 million for Entergy Arkansas, $6.2 million for Entergy Louisiana, $0.5 million for Entergy Mississippi, $0.2 million for Entergy New Orleans, $14 thousand for Entergy Texas, and $2.3 million for System Energy. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the six months ended June 30, 2017, with no change in net income, of $46 million for Entergy, $6.4 million for Entergy Arkansas, $12.3 million for Entergy Louisiana, $1.1 million for Entergy Mississippi, $0.4 million for Entergy New Orleans, ($0.2) million for Entergy Texas, and $3.3 million for System Energy. The retroactive effect of the change for the year ended December 31, 2017 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $108 million for Entergy, $13.7 million for Entergy Arkansas, $27.8 million for Entergy Louisiana, $2.7 million for Entergy Mississippi, $1.3 million for Entergy New Orleans, $0.2 million for Entergy Texas, and $6.2 million for System Energy. The retroactive effect of the change for the year ended December 31, 2016 would be decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income, with no change in net income, of $71 million for Entergy, $13.4 million for Entergy Arkansas, $26.1 million for Entergy Louisiana, $2.4 million for Entergy Mississippi, $1 million for Entergy New Orleans, ($1.1) million for Entergy Texas, and $5.1 million for System Energy. The retroactive effect of the change for the year ended December 31, 2015 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $148 million for Entergy, $30.7 million for Entergy Arkansas, $50.7 million for Entergy Louisiana, $6.3 million for Entergy Mississippi, $4 million for Entergy New Orleans, $4 million for Entergy Texas, and $10.2 million for System Energy. Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $38,752 $33,410 Interest cost on projected benefit obligation 66,854 65,206 Expected return on assets (110,535 ) (102,056 ) Amortization of prior service cost 99 65 Amortization of loss 68,526 56,930 Net pension costs $63,696 $53,555 Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $77,504 $66,820 Interest cost on projected benefit obligation 133,708 130,412 Expected return on assets (221,070 ) (204,112 ) Amortization of prior service cost 198 130 Amortization of loss 137,052 113,860 Net pension costs $127,392 $107,110 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 Non-Qualified Net Pension Cost Entergy recognized $6.6 million and $8.5 million in pension cost for its non-qualified pension plans in the second quarters of 2018 and 2017 , respectively. Reflected in the pension cost for non-qualified pension plans in the second quarters of 2018 and 2017 were settlement charges of $2.4 million and $4 million , respectively, related to the payment of lump sum benefits out of the plan. Entergy recognized $15.5 million and $13.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2018 and 2017, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2018 and 2017 were settlement charges of $6.8 million and $4 million , respectively, related to the payment of lump sum benefits out of this plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 Reflected in Entergy Arkansas’s non-qualified pension costs for the six months ended June 30, 2018 and 2017, were settlement charges of $22 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the six months ended June 30, 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost Entergy’s other postretirement benefit cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $6,782 $6,729 Interest cost on accumulated postretirement benefit obligation (APBO) 12,681 13,960 Expected return on assets (10,373 ) (9,408 ) Amortization of prior service credit (9,251 ) (10,356 ) Amortization of loss 3,432 5,476 Net other postretirement benefit cost $3,271 $6,401 Entergy’s other postretirement benefit cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $13,564 $13,458 Interest cost on accumulated postretirement benefit obligation (APBO) 25,362 27,920 Expected return on assets (20,746 ) (18,816 ) Amortization of prior service credit (18,502 ) (20,712 ) Amortization of loss 6,864 10,952 Net other postretirement benefit cost $6,542 $12,802 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 Employer Contributions Based on current assumptions, Entergy expects to contribute $352.1 million to its qualified pension plans in 2018. As of June 30, 2018 , Entergy had contributed $159.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy Mississippi [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy implemented ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” effective January 1, 2018. The ASU requires entities to report the service cost component of defined benefit pension cost and postretirement benefit cost (net benefit cost) in the same line item as other compensation costs arising from services rendered during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. The amendment regarding the presentation of net benefit cost was required to be applied retrospectively for all periods presented. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization on a prospective basis. In accordance with the regulatory treatment of net benefit cost of the Registrant Subsidiaries, a regulatory asset/liability will be recorded in other regulatory assets/liabilities for the non-service cost components of net benefit cost that would have been capitalized. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the three months ended June 30, 2017, with no change in net income, of $25 million for Entergy, $3.6 million for Entergy Arkansas, $6.2 million for Entergy Louisiana, $0.5 million for Entergy Mississippi, $0.2 million for Entergy New Orleans, $14 thousand for Entergy Texas, and $2.3 million for System Energy. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the six months ended June 30, 2017, with no change in net income, of $46 million for Entergy, $6.4 million for Entergy Arkansas, $12.3 million for Entergy Louisiana, $1.1 million for Entergy Mississippi, $0.4 million for Entergy New Orleans, ($0.2) million for Entergy Texas, and $3.3 million for System Energy. The retroactive effect of the change for the year ended December 31, 2017 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $108 million for Entergy, $13.7 million for Entergy Arkansas, $27.8 million for Entergy Louisiana, $2.7 million for Entergy Mississippi, $1.3 million for Entergy New Orleans, $0.2 million for Entergy Texas, and $6.2 million for System Energy. The retroactive effect of the change for the year ended December 31, 2016 would be decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income, with no change in net income, of $71 million for Entergy, $13.4 million for Entergy Arkansas, $26.1 million for Entergy Louisiana, $2.4 million for Entergy Mississippi, $1 million for Entergy New Orleans, ($1.1) million for Entergy Texas, and $5.1 million for System Energy. The retroactive effect of the change for the year ended December 31, 2015 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $148 million for Entergy, $30.7 million for Entergy Arkansas, $50.7 million for Entergy Louisiana, $6.3 million for Entergy Mississippi, $4 million for Entergy New Orleans, $4 million for Entergy Texas, and $10.2 million for System Energy. Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $38,752 $33,410 Interest cost on projected benefit obligation 66,854 65,206 Expected return on assets (110,535 ) (102,056 ) Amortization of prior service cost 99 65 Amortization of loss 68,526 56,930 Net pension costs $63,696 $53,555 Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $77,504 $66,820 Interest cost on projected benefit obligation 133,708 130,412 Expected return on assets (221,070 ) (204,112 ) Amortization of prior service cost 198 130 Amortization of loss 137,052 113,860 Net pension costs $127,392 $107,110 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 Non-Qualified Net Pension Cost Entergy recognized $6.6 million and $8.5 million in pension cost for its non-qualified pension plans in the second quarters of 2018 and 2017 , respectively. Reflected in the pension cost for non-qualified pension plans in the second quarters of 2018 and 2017 were settlement charges of $2.4 million and $4 million , respectively, related to the payment of lump sum benefits out of the plan. Entergy recognized $15.5 million and $13.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2018 and 2017, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2018 and 2017 were settlement charges of $6.8 million and $4 million , respectively, related to the payment of lump sum benefits out of this plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 Reflected in Entergy Arkansas’s non-qualified pension costs for the six months ended June 30, 2018 and 2017, were settlement charges of $22 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the six months ended June 30, 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost Entergy’s other postretirement benefit cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $6,782 $6,729 Interest cost on accumulated postretirement benefit obligation (APBO) 12,681 13,960 Expected return on assets (10,373 ) (9,408 ) Amortization of prior service credit (9,251 ) (10,356 ) Amortization of loss 3,432 5,476 Net other postretirement benefit cost $3,271 $6,401 Entergy’s other postretirement benefit cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $13,564 $13,458 Interest cost on accumulated postretirement benefit obligation (APBO) 25,362 27,920 Expected return on assets (20,746 ) (18,816 ) Amortization of prior service credit (18,502 ) (20,712 ) Amortization of loss 6,864 10,952 Net other postretirement benefit cost $6,542 $12,802 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 Employer Contributions Based on current assumptions, Entergy expects to contribute $352.1 million to its qualified pension plans in 2018. As of June 30, 2018 , Entergy had contributed $159.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy New Orleans [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy implemented ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” effective January 1, 2018. The ASU requires entities to report the service cost component of defined benefit pension cost and postretirement benefit cost (net benefit cost) in the same line item as other compensation costs arising from services rendered during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. The amendment regarding the presentation of net benefit cost was required to be applied retrospectively for all periods presented. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization on a prospective basis. In accordance with the regulatory treatment of net benefit cost of the Registrant Subsidiaries, a regulatory asset/liability will be recorded in other regulatory assets/liabilities for the non-service cost components of net benefit cost that would have been capitalized. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the three months ended June 30, 2017, with no change in net income, of $25 million for Entergy, $3.6 million for Entergy Arkansas, $6.2 million for Entergy Louisiana, $0.5 million for Entergy Mississippi, $0.2 million for Entergy New Orleans, $14 thousand for Entergy Texas, and $2.3 million for System Energy. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the six months ended June 30, 2017, with no change in net income, of $46 million for Entergy, $6.4 million for Entergy Arkansas, $12.3 million for Entergy Louisiana, $1.1 million for Entergy Mississippi, $0.4 million for Entergy New Orleans, ($0.2) million for Entergy Texas, and $3.3 million for System Energy. The retroactive effect of the change for the year ended December 31, 2017 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $108 million for Entergy, $13.7 million for Entergy Arkansas, $27.8 million for Entergy Louisiana, $2.7 million for Entergy Mississippi, $1.3 million for Entergy New Orleans, $0.2 million for Entergy Texas, and $6.2 million for System Energy. The retroactive effect of the change for the year ended December 31, 2016 would be decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income, with no change in net income, of $71 million for Entergy, $13.4 million for Entergy Arkansas, $26.1 million for Entergy Louisiana, $2.4 million for Entergy Mississippi, $1 million for Entergy New Orleans, ($1.1) million for Entergy Texas, and $5.1 million for System Energy. The retroactive effect of the change for the year ended December 31, 2015 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $148 million for Entergy, $30.7 million for Entergy Arkansas, $50.7 million for Entergy Louisiana, $6.3 million for Entergy Mississippi, $4 million for Entergy New Orleans, $4 million for Entergy Texas, and $10.2 million for System Energy. Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $38,752 $33,410 Interest cost on projected benefit obligation 66,854 65,206 Expected return on assets (110,535 ) (102,056 ) Amortization of prior service cost 99 65 Amortization of loss 68,526 56,930 Net pension costs $63,696 $53,555 Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $77,504 $66,820 Interest cost on projected benefit obligation 133,708 130,412 Expected return on assets (221,070 ) (204,112 ) Amortization of prior service cost 198 130 Amortization of loss 137,052 113,860 Net pension costs $127,392 $107,110 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 Non-Qualified Net Pension Cost Entergy recognized $6.6 million and $8.5 million in pension cost for its non-qualified pension plans in the second quarters of 2018 and 2017 , respectively. Reflected in the pension cost for non-qualified pension plans in the second quarters of 2018 and 2017 were settlement charges of $2.4 million and $4 million , respectively, related to the payment of lump sum benefits out of the plan. Entergy recognized $15.5 million and $13.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2018 and 2017, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2018 and 2017 were settlement charges of $6.8 million and $4 million , respectively, related to the payment of lump sum benefits out of this plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 Reflected in Entergy Arkansas’s non-qualified pension costs for the six months ended June 30, 2018 and 2017, were settlement charges of $22 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the six months ended June 30, 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost Entergy’s other postretirement benefit cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $6,782 $6,729 Interest cost on accumulated postretirement benefit obligation (APBO) 12,681 13,960 Expected return on assets (10,373 ) (9,408 ) Amortization of prior service credit (9,251 ) (10,356 ) Amortization of loss 3,432 5,476 Net other postretirement benefit cost $3,271 $6,401 Entergy’s other postretirement benefit cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $13,564 $13,458 Interest cost on accumulated postretirement benefit obligation (APBO) 25,362 27,920 Expected return on assets (20,746 ) (18,816 ) Amortization of prior service credit (18,502 ) (20,712 ) Amortization of loss 6,864 10,952 Net other postretirement benefit cost $6,542 $12,802 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 Employer Contributions Based on current assumptions, Entergy expects to contribute $352.1 million to its qualified pension plans in 2018. As of June 30, 2018 , Entergy had contributed $159.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy Texas [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy implemented ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” effective January 1, 2018. The ASU requires entities to report the service cost component of defined benefit pension cost and postretirement benefit cost (net benefit cost) in the same line item as other compensation costs arising from services rendered during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. The amendment regarding the presentation of net benefit cost was required to be applied retrospectively for all periods presented. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization on a prospective basis. In accordance with the regulatory treatment of net benefit cost of the Registrant Subsidiaries, a regulatory asset/liability will be recorded in other regulatory assets/liabilities for the non-service cost components of net benefit cost that would have been capitalized. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the three months ended June 30, 2017, with no change in net income, of $25 million for Entergy, $3.6 million for Entergy Arkansas, $6.2 million for Entergy Louisiana, $0.5 million for Entergy Mississippi, $0.2 million for Entergy New Orleans, $14 thousand for Entergy Texas, and $2.3 million for System Energy. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the six months ended June 30, 2017, with no change in net income, of $46 million for Entergy, $6.4 million for Entergy Arkansas, $12.3 million for Entergy Louisiana, $1.1 million for Entergy Mississippi, $0.4 million for Entergy New Orleans, ($0.2) million for Entergy Texas, and $3.3 million for System Energy. The retroactive effect of the change for the year ended December 31, 2017 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $108 million for Entergy, $13.7 million for Entergy Arkansas, $27.8 million for Entergy Louisiana, $2.7 million for Entergy Mississippi, $1.3 million for Entergy New Orleans, $0.2 million for Entergy Texas, and $6.2 million for System Energy. The retroactive effect of the change for the year ended December 31, 2016 would be decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income, with no change in net income, of $71 million for Entergy, $13.4 million for Entergy Arkansas, $26.1 million for Entergy Louisiana, $2.4 million for Entergy Mississippi, $1 million for Entergy New Orleans, ($1.1) million for Entergy Texas, and $5.1 million for System Energy. The retroactive effect of the change for the year ended December 31, 2015 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $148 million for Entergy, $30.7 million for Entergy Arkansas, $50.7 million for Entergy Louisiana, $6.3 million for Entergy Mississippi, $4 million for Entergy New Orleans, $4 million for Entergy Texas, and $10.2 million for System Energy. Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $38,752 $33,410 Interest cost on projected benefit obligation 66,854 65,206 Expected return on assets (110,535 ) (102,056 ) Amortization of prior service cost 99 65 Amortization of loss 68,526 56,930 Net pension costs $63,696 $53,555 Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $77,504 $66,820 Interest cost on projected benefit obligation 133,708 130,412 Expected return on assets (221,070 ) (204,112 ) Amortization of prior service cost 198 130 Amortization of loss 137,052 113,860 Net pension costs $127,392 $107,110 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 Non-Qualified Net Pension Cost Entergy recognized $6.6 million and $8.5 million in pension cost for its non-qualified pension plans in the second quarters of 2018 and 2017 , respectively. Reflected in the pension cost for non-qualified pension plans in the second quarters of 2018 and 2017 were settlement charges of $2.4 million and $4 million , respectively, related to the payment of lump sum benefits out of the plan. Entergy recognized $15.5 million and $13.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2018 and 2017, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2018 and 2017 were settlement charges of $6.8 million and $4 million , respectively, related to the payment of lump sum benefits out of this plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 Reflected in Entergy Arkansas’s non-qualified pension costs for the six months ended June 30, 2018 and 2017, were settlement charges of $22 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the six months ended June 30, 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost Entergy’s other postretirement benefit cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $6,782 $6,729 Interest cost on accumulated postretirement benefit obligation (APBO) 12,681 13,960 Expected return on assets (10,373 ) (9,408 ) Amortization of prior service credit (9,251 ) (10,356 ) Amortization of loss 3,432 5,476 Net other postretirement benefit cost $3,271 $6,401 Entergy’s other postretirement benefit cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $13,564 $13,458 Interest cost on accumulated postretirement benefit obligation (APBO) 25,362 27,920 Expected return on assets (20,746 ) (18,816 ) Amortization of prior service credit (18,502 ) (20,712 ) Amortization of loss 6,864 10,952 Net other postretirement benefit cost $6,542 $12,802 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 Employer Contributions Based on current assumptions, Entergy expects to contribute $352.1 million to its qualified pension plans in 2018. As of June 30, 2018 , Entergy had contributed $159.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
System Energy [Member] | |
Retirement And Other Postretirement Benefits | RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy implemented ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” effective January 1, 2018. The ASU requires entities to report the service cost component of defined benefit pension cost and postretirement benefit cost (net benefit cost) in the same line item as other compensation costs arising from services rendered during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income. The amendment regarding the presentation of net benefit cost was required to be applied retrospectively for all periods presented. In addition, the ASU allows only the service cost component of net benefit cost to be eligible for capitalization on a prospective basis. In accordance with the regulatory treatment of net benefit cost of the Registrant Subsidiaries, a regulatory asset/liability will be recorded in other regulatory assets/liabilities for the non-service cost components of net benefit cost that would have been capitalized. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the three months ended June 30, 2017, with no change in net income, of $25 million for Entergy, $3.6 million for Entergy Arkansas, $6.2 million for Entergy Louisiana, $0.5 million for Entergy Mississippi, $0.2 million for Entergy New Orleans, $14 thousand for Entergy Texas, and $2.3 million for System Energy. The retroactive presentation changes resulted in decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income for the six months ended June 30, 2017, with no change in net income, of $46 million for Entergy, $6.4 million for Entergy Arkansas, $12.3 million for Entergy Louisiana, $1.1 million for Entergy Mississippi, $0.4 million for Entergy New Orleans, ($0.2) million for Entergy Texas, and $3.3 million for System Energy. The retroactive effect of the change for the year ended December 31, 2017 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $108 million for Entergy, $13.7 million for Entergy Arkansas, $27.8 million for Entergy Louisiana, $2.7 million for Entergy Mississippi, $1.3 million for Entergy New Orleans, $0.2 million for Entergy Texas, and $6.2 million for System Energy. The retroactive effect of the change for the year ended December 31, 2016 would be decreases (increases) in other operation and maintenance expenses and decreases (increases) in other income, with no change in net income, of $71 million for Entergy, $13.4 million for Entergy Arkansas, $26.1 million for Entergy Louisiana, $2.4 million for Entergy Mississippi, $1 million for Entergy New Orleans, ($1.1) million for Entergy Texas, and $5.1 million for System Energy. The retroactive effect of the change for the year ended December 31, 2015 would be decreases in other operation and maintenance expenses and decreases in other income, with no change in net income, of $148 million for Entergy, $30.7 million for Entergy Arkansas, $50.7 million for Entergy Louisiana, $6.3 million for Entergy Mississippi, $4 million for Entergy New Orleans, $4 million for Entergy Texas, and $10.2 million for System Energy. Components of Qualified Net Pension Cost Entergy’s qualified pension cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $38,752 $33,410 Interest cost on projected benefit obligation 66,854 65,206 Expected return on assets (110,535 ) (102,056 ) Amortization of prior service cost 99 65 Amortization of loss 68,526 56,930 Net pension costs $63,696 $53,555 Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $77,504 $66,820 Interest cost on projected benefit obligation 133,708 130,412 Expected return on assets (221,070 ) (204,112 ) Amortization of prior service cost 198 130 Amortization of loss 137,052 113,860 Net pension costs $127,392 $107,110 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 Non-Qualified Net Pension Cost Entergy recognized $6.6 million and $8.5 million in pension cost for its non-qualified pension plans in the second quarters of 2018 and 2017 , respectively. Reflected in the pension cost for non-qualified pension plans in the second quarters of 2018 and 2017 were settlement charges of $2.4 million and $4 million , respectively, related to the payment of lump sum benefits out of the plan. Entergy recognized $15.5 million and $13.1 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2018 and 2017, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2018 and 2017 were settlement charges of $6.8 million and $4 million , respectively, related to the payment of lump sum benefits out of this plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the second quarters of 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 Reflected in Entergy Arkansas’s non-qualified pension costs for the six months ended June 30, 2018 and 2017, were settlement charges of $22 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs for the six months ended June 30, 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. Components of Net Other Postretirement Benefit Cost Entergy’s other postretirement benefit cost, including amounts capitalized, for the second quarters of 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $6,782 $6,729 Interest cost on accumulated postretirement benefit obligation (APBO) 12,681 13,960 Expected return on assets (10,373 ) (9,408 ) Amortization of prior service credit (9,251 ) (10,356 ) Amortization of loss 3,432 5,476 Net other postretirement benefit cost $3,271 $6,401 Entergy’s other postretirement benefit cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $13,564 $13,458 Interest cost on accumulated postretirement benefit obligation (APBO) 25,362 27,920 Expected return on assets (20,746 ) (18,816 ) Amortization of prior service credit (18,502 ) (20,712 ) Amortization of loss 6,864 10,952 Net other postretirement benefit cost $6,542 $12,802 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the second quarters of 2018 and 2017, included the following components: 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 Reclassification out of Accumulated Other Comprehensive Income (Loss) Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 Employer Contributions Based on current assumptions, Entergy expects to contribute $352.1 million to its qualified pension plans in 2018. As of June 30, 2018 , Entergy had contributed $159.7 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Business Segment Information | BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation Entergy’s reportable segments as of June 30, 2018 are Utility and Entergy Wholesale Commodities. Utility 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 operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity. Entergy’s segment financial information for the second quarters of 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $2,360,208 $308,602 $— ($40 ) $2,668,770 Income taxes ($240,324 ) ($30,144 ) ($10,128 ) $— ($280,596 ) Consolidated net income (loss) $378,394 ($56,337 ) ($41,299 ) ($31,898 ) $248,860 2017 Operating revenues $2,301,332 $317,255 $— ($37 ) $2,618,550 Income taxes $130,851 ($454,944 ) ($13,019 ) $— ($337,112 ) Consolidated net income (loss) $246,382 $223,886 ($25,001 ) ($31,899 ) $413,368 Entergy’s segment financial information for the six months ended June 30, 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $4,665,197 $727,526 $— ($73 ) $5,392,650 Income taxes ($188,100 ) ($31,222 ) ($17,611 ) $— ($236,933 ) Consolidated net income (loss) $596,333 ($74,116 ) ($73,361 ) ($63,797 ) $385,059 Total assets as of June 30, 2018 $44,117,784 $5,433,618 $1,240,106 ($3,168,859 ) $47,622,649 2017 Operating revenues $4,336,444 $870,622 $— ($58) $5,207,008 Income taxes $229,343 ($533,281) ($25,412) $— ($329,350) Consolidated net income (loss) $414,005 $196,689 ($47,477 ) ($63,797 ) $499,420 Total assets as of December 31, 2017 $42,978,669 $5,638,009 $1,011,612 ($2,921,141) $46,707,149 The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment. As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions. Total restructuring charges for the second quarters of 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance expenses and other benefits-related costs Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of April 1, $109 $14 $123 $94 $21 $115 Restructuring costs accrued 34 — 34 42 — 42 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $69 million in the second quarter 2018 and $194 million in the second quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged 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. Total restructuring charges for the six months ended June 30, 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of January 1, $83 $14 $97 $70 $21 $91 Restructuring costs accrued 60 — 60 66 — 66 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $142 million in the six months ended June 30, 2018 and $405 million in the six months ended June 30, 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $155 million in 2018, of which $60 million has been incurred as of June 30, 2018, and a total of approximately $215 million from 2019 through mid-2022. Registrant Subsidiaries Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. |
Entergy Arkansas [Member] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation Entergy’s reportable segments as of June 30, 2018 are Utility and Entergy Wholesale Commodities. Utility 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 operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity. Entergy’s segment financial information for the second quarters of 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $2,360,208 $308,602 $— ($40 ) $2,668,770 Income taxes ($240,324 ) ($30,144 ) ($10,128 ) $— ($280,596 ) Consolidated net income (loss) $378,394 ($56,337 ) ($41,299 ) ($31,898 ) $248,860 2017 Operating revenues $2,301,332 $317,255 $— ($37 ) $2,618,550 Income taxes $130,851 ($454,944 ) ($13,019 ) $— ($337,112 ) Consolidated net income (loss) $246,382 $223,886 ($25,001 ) ($31,899 ) $413,368 Entergy’s segment financial information for the six months ended June 30, 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $4,665,197 $727,526 $— ($73 ) $5,392,650 Income taxes ($188,100 ) ($31,222 ) ($17,611 ) $— ($236,933 ) Consolidated net income (loss) $596,333 ($74,116 ) ($73,361 ) ($63,797 ) $385,059 Total assets as of June 30, 2018 $44,117,784 $5,433,618 $1,240,106 ($3,168,859 ) $47,622,649 2017 Operating revenues $4,336,444 $870,622 $— ($58) $5,207,008 Income taxes $229,343 ($533,281) ($25,412) $— ($329,350) Consolidated net income (loss) $414,005 $196,689 ($47,477 ) ($63,797 ) $499,420 Total assets as of December 31, 2017 $42,978,669 $5,638,009 $1,011,612 ($2,921,141) $46,707,149 The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment. As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions. Total restructuring charges for the second quarters of 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance expenses and other benefits-related costs Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of April 1, $109 $14 $123 $94 $21 $115 Restructuring costs accrued 34 — 34 42 — 42 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $69 million in the second quarter 2018 and $194 million in the second quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged 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. Total restructuring charges for the six months ended June 30, 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of January 1, $83 $14 $97 $70 $21 $91 Restructuring costs accrued 60 — 60 66 — 66 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $142 million in the six months ended June 30, 2018 and $405 million in the six months ended June 30, 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $155 million in 2018, of which $60 million has been incurred as of June 30, 2018, and a total of approximately $215 million from 2019 through mid-2022. Registrant Subsidiaries Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. |
Entergy Louisiana [Member] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation Entergy’s reportable segments as of June 30, 2018 are Utility and Entergy Wholesale Commodities. Utility 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 operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity. Entergy’s segment financial information for the second quarters of 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $2,360,208 $308,602 $— ($40 ) $2,668,770 Income taxes ($240,324 ) ($30,144 ) ($10,128 ) $— ($280,596 ) Consolidated net income (loss) $378,394 ($56,337 ) ($41,299 ) ($31,898 ) $248,860 2017 Operating revenues $2,301,332 $317,255 $— ($37 ) $2,618,550 Income taxes $130,851 ($454,944 ) ($13,019 ) $— ($337,112 ) Consolidated net income (loss) $246,382 $223,886 ($25,001 ) ($31,899 ) $413,368 Entergy’s segment financial information for the six months ended June 30, 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $4,665,197 $727,526 $— ($73 ) $5,392,650 Income taxes ($188,100 ) ($31,222 ) ($17,611 ) $— ($236,933 ) Consolidated net income (loss) $596,333 ($74,116 ) ($73,361 ) ($63,797 ) $385,059 Total assets as of June 30, 2018 $44,117,784 $5,433,618 $1,240,106 ($3,168,859 ) $47,622,649 2017 Operating revenues $4,336,444 $870,622 $— ($58) $5,207,008 Income taxes $229,343 ($533,281) ($25,412) $— ($329,350) Consolidated net income (loss) $414,005 $196,689 ($47,477 ) ($63,797 ) $499,420 Total assets as of December 31, 2017 $42,978,669 $5,638,009 $1,011,612 ($2,921,141) $46,707,149 The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment. As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions. Total restructuring charges for the second quarters of 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance expenses and other benefits-related costs Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of April 1, $109 $14 $123 $94 $21 $115 Restructuring costs accrued 34 — 34 42 — 42 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $69 million in the second quarter 2018 and $194 million in the second quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged 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. Total restructuring charges for the six months ended June 30, 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of January 1, $83 $14 $97 $70 $21 $91 Restructuring costs accrued 60 — 60 66 — 66 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $142 million in the six months ended June 30, 2018 and $405 million in the six months ended June 30, 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $155 million in 2018, of which $60 million has been incurred as of June 30, 2018, and a total of approximately $215 million from 2019 through mid-2022. Registrant Subsidiaries Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. |
Entergy Mississippi [Member] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation Entergy’s reportable segments as of June 30, 2018 are Utility and Entergy Wholesale Commodities. Utility 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 operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity. Entergy’s segment financial information for the second quarters of 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $2,360,208 $308,602 $— ($40 ) $2,668,770 Income taxes ($240,324 ) ($30,144 ) ($10,128 ) $— ($280,596 ) Consolidated net income (loss) $378,394 ($56,337 ) ($41,299 ) ($31,898 ) $248,860 2017 Operating revenues $2,301,332 $317,255 $— ($37 ) $2,618,550 Income taxes $130,851 ($454,944 ) ($13,019 ) $— ($337,112 ) Consolidated net income (loss) $246,382 $223,886 ($25,001 ) ($31,899 ) $413,368 Entergy’s segment financial information for the six months ended June 30, 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $4,665,197 $727,526 $— ($73 ) $5,392,650 Income taxes ($188,100 ) ($31,222 ) ($17,611 ) $— ($236,933 ) Consolidated net income (loss) $596,333 ($74,116 ) ($73,361 ) ($63,797 ) $385,059 Total assets as of June 30, 2018 $44,117,784 $5,433,618 $1,240,106 ($3,168,859 ) $47,622,649 2017 Operating revenues $4,336,444 $870,622 $— ($58) $5,207,008 Income taxes $229,343 ($533,281) ($25,412) $— ($329,350) Consolidated net income (loss) $414,005 $196,689 ($47,477 ) ($63,797 ) $499,420 Total assets as of December 31, 2017 $42,978,669 $5,638,009 $1,011,612 ($2,921,141) $46,707,149 The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment. As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions. Total restructuring charges for the second quarters of 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance expenses and other benefits-related costs Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of April 1, $109 $14 $123 $94 $21 $115 Restructuring costs accrued 34 — 34 42 — 42 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $69 million in the second quarter 2018 and $194 million in the second quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged 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. Total restructuring charges for the six months ended June 30, 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of January 1, $83 $14 $97 $70 $21 $91 Restructuring costs accrued 60 — 60 66 — 66 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $142 million in the six months ended June 30, 2018 and $405 million in the six months ended June 30, 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $155 million in 2018, of which $60 million has been incurred as of June 30, 2018, and a total of approximately $215 million from 2019 through mid-2022. Registrant Subsidiaries Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. |
Entergy New Orleans [Member] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation Entergy’s reportable segments as of June 30, 2018 are Utility and Entergy Wholesale Commodities. Utility 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 operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity. Entergy’s segment financial information for the second quarters of 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $2,360,208 $308,602 $— ($40 ) $2,668,770 Income taxes ($240,324 ) ($30,144 ) ($10,128 ) $— ($280,596 ) Consolidated net income (loss) $378,394 ($56,337 ) ($41,299 ) ($31,898 ) $248,860 2017 Operating revenues $2,301,332 $317,255 $— ($37 ) $2,618,550 Income taxes $130,851 ($454,944 ) ($13,019 ) $— ($337,112 ) Consolidated net income (loss) $246,382 $223,886 ($25,001 ) ($31,899 ) $413,368 Entergy’s segment financial information for the six months ended June 30, 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $4,665,197 $727,526 $— ($73 ) $5,392,650 Income taxes ($188,100 ) ($31,222 ) ($17,611 ) $— ($236,933 ) Consolidated net income (loss) $596,333 ($74,116 ) ($73,361 ) ($63,797 ) $385,059 Total assets as of June 30, 2018 $44,117,784 $5,433,618 $1,240,106 ($3,168,859 ) $47,622,649 2017 Operating revenues $4,336,444 $870,622 $— ($58) $5,207,008 Income taxes $229,343 ($533,281) ($25,412) $— ($329,350) Consolidated net income (loss) $414,005 $196,689 ($47,477 ) ($63,797 ) $499,420 Total assets as of December 31, 2017 $42,978,669 $5,638,009 $1,011,612 ($2,921,141) $46,707,149 The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment. As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions. Total restructuring charges for the second quarters of 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance expenses and other benefits-related costs Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of April 1, $109 $14 $123 $94 $21 $115 Restructuring costs accrued 34 — 34 42 — 42 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $69 million in the second quarter 2018 and $194 million in the second quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged 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. Total restructuring charges for the six months ended June 30, 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of January 1, $83 $14 $97 $70 $21 $91 Restructuring costs accrued 60 — 60 66 — 66 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $142 million in the six months ended June 30, 2018 and $405 million in the six months ended June 30, 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $155 million in 2018, of which $60 million has been incurred as of June 30, 2018, and a total of approximately $215 million from 2019 through mid-2022. Registrant Subsidiaries Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. |
Entergy Texas [Member] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation Entergy’s reportable segments as of June 30, 2018 are Utility and Entergy Wholesale Commodities. Utility 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 operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity. Entergy’s segment financial information for the second quarters of 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $2,360,208 $308,602 $— ($40 ) $2,668,770 Income taxes ($240,324 ) ($30,144 ) ($10,128 ) $— ($280,596 ) Consolidated net income (loss) $378,394 ($56,337 ) ($41,299 ) ($31,898 ) $248,860 2017 Operating revenues $2,301,332 $317,255 $— ($37 ) $2,618,550 Income taxes $130,851 ($454,944 ) ($13,019 ) $— ($337,112 ) Consolidated net income (loss) $246,382 $223,886 ($25,001 ) ($31,899 ) $413,368 Entergy’s segment financial information for the six months ended June 30, 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $4,665,197 $727,526 $— ($73 ) $5,392,650 Income taxes ($188,100 ) ($31,222 ) ($17,611 ) $— ($236,933 ) Consolidated net income (loss) $596,333 ($74,116 ) ($73,361 ) ($63,797 ) $385,059 Total assets as of June 30, 2018 $44,117,784 $5,433,618 $1,240,106 ($3,168,859 ) $47,622,649 2017 Operating revenues $4,336,444 $870,622 $— ($58) $5,207,008 Income taxes $229,343 ($533,281) ($25,412) $— ($329,350) Consolidated net income (loss) $414,005 $196,689 ($47,477 ) ($63,797 ) $499,420 Total assets as of December 31, 2017 $42,978,669 $5,638,009 $1,011,612 ($2,921,141) $46,707,149 The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment. As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions. Total restructuring charges for the second quarters of 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance expenses and other benefits-related costs Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of April 1, $109 $14 $123 $94 $21 $115 Restructuring costs accrued 34 — 34 42 — 42 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $69 million in the second quarter 2018 and $194 million in the second quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged 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. Total restructuring charges for the six months ended June 30, 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of January 1, $83 $14 $97 $70 $21 $91 Restructuring costs accrued 60 — 60 66 — 66 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $142 million in the six months ended June 30, 2018 and $405 million in the six months ended June 30, 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $155 million in 2018, of which $60 million has been incurred as of June 30, 2018, and a total of approximately $215 million from 2019 through mid-2022. Registrant Subsidiaries Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. |
System Energy [Member] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Entergy Corporation Entergy’s reportable segments as of June 30, 2018 are Utility and Entergy Wholesale Commodities. Utility 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 operation of a small natural gas distribution business. Entergy Wholesale Commodities includes the ownership, operation, and decommissioning of nuclear power plants located in the northern United States and the sale of the electric power produced by its operating plants to wholesale customers. Entergy Wholesale Commodities also provides services to other nuclear power plant owners and owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. “All Other” includes the parent company, Entergy Corporation, and other business activity. Entergy’s segment financial information for the second quarters of 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $2,360,208 $308,602 $— ($40 ) $2,668,770 Income taxes ($240,324 ) ($30,144 ) ($10,128 ) $— ($280,596 ) Consolidated net income (loss) $378,394 ($56,337 ) ($41,299 ) ($31,898 ) $248,860 2017 Operating revenues $2,301,332 $317,255 $— ($37 ) $2,618,550 Income taxes $130,851 ($454,944 ) ($13,019 ) $— ($337,112 ) Consolidated net income (loss) $246,382 $223,886 ($25,001 ) ($31,899 ) $413,368 Entergy’s segment financial information for the six months ended June 30, 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $4,665,197 $727,526 $— ($73 ) $5,392,650 Income taxes ($188,100 ) ($31,222 ) ($17,611 ) $— ($236,933 ) Consolidated net income (loss) $596,333 ($74,116 ) ($73,361 ) ($63,797 ) $385,059 Total assets as of June 30, 2018 $44,117,784 $5,433,618 $1,240,106 ($3,168,859 ) $47,622,649 2017 Operating revenues $4,336,444 $870,622 $— ($58) $5,207,008 Income taxes $229,343 ($533,281) ($25,412) $— ($329,350) Consolidated net income (loss) $414,005 $196,689 ($47,477 ) ($63,797 ) $499,420 Total assets as of December 31, 2017 $42,978,669 $5,638,009 $1,011,612 ($2,921,141) $46,707,149 The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment. As discussed in Note 13 to the financial statements in the Form 10-K, Entergy management has undertaken a strategy to manage and reduce the risk of the Entergy Wholesale Commodities business, which includes taking actions to reduce the size of the merchant fleet. These decisions and transactions resulted in asset impairments; employee retention and severance expenses and other benefits-related costs; and contracted economic development contributions. Total restructuring charges for the second quarters of 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance expenses and other benefits-related costs Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of April 1, $109 $14 $123 $94 $21 $115 Restructuring costs accrued 34 — 34 42 — 42 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $69 million in the second quarter 2018 and $194 million in the second quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged 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. Total restructuring charges for the six months ended June 30, 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of January 1, $83 $14 $97 $70 $21 $91 Restructuring costs accrued 60 — 60 66 — 66 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $142 million in the six months ended June 30, 2018 and $405 million in the six months ended June 30, 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. Going forward, Entergy Wholesale Commodities expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size of the Entergy Wholesale Commodities’ merchant fleet of approximately $155 million in 2018, of which $60 million has been incurred as of June 30, 2018, and a total of approximately $215 million from 2019 through mid-2022. Registrant Subsidiaries Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations is managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. |
Risk Management And Fair Values
Risk Management And Fair Values | 6 Months Ended |
Jun. 30, 2018 | |
Risk Management And Fair Values | RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Market Risk In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk, particularly power price and fuel price risk. The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use derivative instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs that are recovered from customers. 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 and capacity in the day ahead or spot markets. In addition to its forward physical power and gas contracts, Entergy Wholesale Commodities also uses a combination of financial contracts, including swaps, collars, and options, to mitigate commodity price risk. When the market price falls, the combination of instruments is expected to settle in gains that offset lower revenue from generation, which results in a more predictable cash flow. Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Hedging instruments and volumes are chosen based on ability to mitigate risk associated with future energy and capacity prices; however, other considerations are factored into hedge product and volume decisions including corporate liquidity, corporate credit ratings, counterparty credit risk, hedging costs, firm settlement risk, and product availability in the marketplace. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives. Derivatives Some derivative instruments are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sale transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity swaps and options and interest rate swaps. Entergy may enter into financially-settled swap and option contracts to manage market risk that may or may not be designated as hedging instruments. Entergy enters into derivatives to manage natural risks inherent in its physical or financial assets or liabilities. Electricity over-the-counter instruments and futures contracts that financially settle against day-ahead power pool prices are used to manage price exposure for Entergy Wholesale Commodities generation. The maximum length of time over which Entergy Wholesale Commodities is currently hedging the variability in future cash flows with derivatives for forecasted power transactions at June 30, 2018 is approximately 2.5 years. Planned generation currently under contract from Entergy Wholesale Commodities nuclear power plants is 98% for the remainder of 2018 , of which approximately 82% is sold under financial derivatives and the remainder under normal purchase/normal sale contracts. Total planned generation for the remainder of 2018 is 14.1 TWh. Entergy may use standardized master netting agreements to help mitigate the credit risk of derivative instruments. These master agreements facilitate the netting of cash flows associated with a single counterparty and may include collateral requirements. Cash, letters of credit, and parental/affiliate guarantees may be obtained as security from counterparties in order to mitigate credit risk. The collateral agreements require a counterparty to post cash or letters of credit in the event an exposure exceeds an established threshold. The threshold represents an unsecured credit limit, which may be supported by a parental/affiliate guaranty, as determined in accordance with Entergy’s credit policy. In addition, collateral agreements allow for termination and liquidation of all positions in the event of a failure or inability to post collateral. Certain 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 depending on the mark-to-market values of the contracts. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee. As of June 30, 2018 , derivative contracts with seven counterparties were in a liability position (approximately $30 million total). In addition to the corporate guarantee, $5 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $3 million in cash collateral and $3 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. As of December 31, 2017 , derivative contracts with eight counterparties were in a liability position (approximately $65 million total). In addition to the corporate guarantee, $1 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $4 million in cash collateral and $34 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. If the Entergy Corporation credit rating falls below investment grade, Entergy would have to post collateral equal to the estimated outstanding liability under the contract at the applicable date. Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of short-term natural gas swaps that financially settle against NYMEX futures. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy Louisiana and Entergy New Orleans. The total volume of natural gas swaps outstanding as of June 30, 2018 is 39,670,000 MMBtu for Entergy, including 32,100,000 MMBtu for Entergy Louisiana and 7,570,000 MMBtu for Entergy Mississippi. Credit support for these natural gas swaps is covered by master agreements that do not require collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. During the second quarter 2018, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2018 through May 31, 2019. Financial transmission rights are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by Entergy Wholesale Commodities are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2018 is 108,294 GWh for Entergy, including 24,646 GWh for Entergy Arkansas, 46,135 GWh for Entergy Louisiana, 14,368 GWh for Entergy Mississippi, 5,184 GWh for Entergy New Orleans, and 17,512 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy Wholesale Commodities is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for Entergy Wholesale Commodities as of June 30, 2018 and December 31, 2017. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas and Entergy Mississippi as of June 30, 2018 and Entergy Arkansas, Entergy Mississippi, and Entergy Texas as of December 31, 2017. The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of June 30, 2018 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $29 ($21) $8 Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $11 ($11) $— Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $34 ($21) $13 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $30 ($10) $20 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $2 ($2) $— Entergy Wholesale Commodities Natural gas swaps Prepayments and other $3 $— $3 Utility Financial transmission rights Prepayments and other $42 $1 $41 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $2 ($2) $— Entergy Wholesale Commodities The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $19 ($19) $— Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $19 ($14) $5 Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $86 ($20) $66 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $17 ($14) $3 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $9 ($9) $— Entergy Wholesale Commodities Financial transmission rights Prepayments and other $22 ($1) $21 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $9 ($8) $1 Entergy Wholesale Commodities Natural gas swaps Other current liabilities $6 $— $6 Utility (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet (d) Excludes cash collateral in the amount of $5 million posted and $3 million held as of June 30, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $1 million posted and $3 million held as of June 30, 2018 and $34 million in letters of credit held as of December 31, 2017. The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain (loss) recognized in other comprehensive income Income Statement location Amount of gain reclassified from accumulated other comprehensive income into income (a) (In Millions) (In Millions) 2018 Electricity swaps and options ($80) Competitive businesses operating revenues $3 2017 Electricity swaps and options $43 Competitive businesses operating revenues $13 (a) Before taxes of $1 million and $4 million for the three months ended June 30, 2018 and 2017, respectively The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in other Income Statement location Amount of gain (loss) (In Millions) (In Millions) 2018 Electricity swaps and options $11 Competitive businesses operating revenues ($27) 2017 Electricity swaps and options $93 Competitive businesses operating revenues $64 (a) Before taxes of ($6) million and $22 million for the six months ended June 30, 2018 and 2017, respectively At each reporting period, Entergy measures its hedges for ineffectiveness. Any ineffectiveness is recognized in earnings during the period. The ineffective portion of cash flow hedges is recorded in competitive business operating revenues. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the three months ended June 30, 2018 and 2017 was ($15) million and $5 million , respectively. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the six months ended June 30, 2018 and 2017 was ($2) million and $4 million , respectively. Based on market prices as of June 30, 2018 , unrealized gains (losses) recorded in accumulated other comprehensive income on cash flow hedges relating to power sales totaled ($17) million of net unrealized losses. Approximately ($2) million is expected to be reclassified from accumulated other comprehensive income to operating revenues in the next twelve months. The actual amount reclassified from accumulated other comprehensive income, however, could vary due to future changes in market prices. Entergy may effectively liquidate a cash flow hedge instrument by entering into a contract offsetting the original hedge, and then de-designating the original hedge in this situation. Gains or losses accumulated in other comprehensive income prior to de-designation continue to be deferred in other comprehensive income until they are included in income as the original hedged transaction occurs. From the point of de-designation, the gains or losses on the original hedge and the offsetting contract are recorded as assets or liabilities on the balance sheet and offset as they flow through to earnings. The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of loss recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $41 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($9) Financial transmission rights $— Purchased power expense (b) $44 Electricity swaps and options ($5) (c) Competitive business operating revenues $— The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $73 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($16) Financial transmission rights $— Purchased power expense (b) $75 Electricity swaps and options $4 (c) Competitive business operating revenues $— (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items. The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. Fair Values The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments other than those instruments held by the Entergy Wholesale Commodities business are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments. Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are: • Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas hedge contracts. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase. • Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following: – quoted prices for similar assets or liabilities in active markets; – quoted prices for identical assets or liabilities in inactive markets; – inputs other than quoted prices that are observable for the asset or liability; or – inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 consists primarily of individually-owned debt instruments. • Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights and derivative power contracts used as cash flow hedges of power sales at merchant power plants. The values for power contract assets or liabilities are based on both observable inputs including public market prices and interest rates, and unobservable inputs such as implied volatilities, unit contingent discounts, expected basis differences, and credit adjusted counterparty interest rates. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Business Unit Risk Control group and the Accounting Policy and Entergy Wholesale Commodities Accounting group. The primary functions of the Business Unit Risk Control group include: gathering, validating and reporting market data, providing market risk analyses and valuations in support of Entergy Wholesale Commodities’ commercial transactions, developing and administering protocols for the management of market risks, and implementing and maintaining controls around changes to market data in the energy trading and risk management system. The Business Unit Risk Control group is also responsible for managing the energy trading and risk management system, forecasting revenues, forward positions and analysis. The Accounting Policy and Entergy Wholesale Commodities Accounting group performs functions related to market and counterparty settlements, revenue reporting and analysis and financial accounting. The Business Unit Risk Control group reports to the Vice President and Treasurer while the Accounting Policy and Entergy Wholesale Commodities Accounting group reports to the Chief Accounting Officer. The amounts reflected as the fair value of electricity swaps are based on the estimated amount that the contracts are in-the-money at the balance sheet date (treated as an asset) or out-of-the-money at the balance sheet date (treated as a liability) and would equal the estimated amount receivable to or payable by Entergy if the contracts were settled at that date. These derivative contracts include cash flow hedges that swap fixed for floating cash flows for sales of the output from the Entergy Wholesale Commodities business. The fair values are based on the mark-to-market comparison between the fixed contract prices and the floating prices determined each period from quoted forward power market prices. The differences between the fixed price in the swap contract and these market-related prices multiplied by the volume specified in the contract and discounted at the counterparties’ credit adjusted risk free rate are recorded as derivative contract assets or liabilities. For contracts that have unit contingent terms, a further discount is applied based on the historical relationship between contract and market prices for similar contract terms. The amounts reflected as the fair values of electricity options are valued based on a Black Scholes model, and are c |
Entergy Arkansas [Member] | |
Risk Management And Fair Values | RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Market Risk In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk, particularly power price and fuel price risk. The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use derivative instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs that are recovered from customers. 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 and capacity in the day ahead or spot markets. In addition to its forward physical power and gas contracts, Entergy Wholesale Commodities also uses a combination of financial contracts, including swaps, collars, and options, to mitigate commodity price risk. When the market price falls, the combination of instruments is expected to settle in gains that offset lower revenue from generation, which results in a more predictable cash flow. Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Hedging instruments and volumes are chosen based on ability to mitigate risk associated with future energy and capacity prices; however, other considerations are factored into hedge product and volume decisions including corporate liquidity, corporate credit ratings, counterparty credit risk, hedging costs, firm settlement risk, and product availability in the marketplace. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives. Derivatives Some derivative instruments are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sale transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity swaps and options and interest rate swaps. Entergy may enter into financially-settled swap and option contracts to manage market risk that may or may not be designated as hedging instruments. Entergy enters into derivatives to manage natural risks inherent in its physical or financial assets or liabilities. Electricity over-the-counter instruments and futures contracts that financially settle against day-ahead power pool prices are used to manage price exposure for Entergy Wholesale Commodities generation. The maximum length of time over which Entergy Wholesale Commodities is currently hedging the variability in future cash flows with derivatives for forecasted power transactions at June 30, 2018 is approximately 2.5 years. Planned generation currently under contract from Entergy Wholesale Commodities nuclear power plants is 98% for the remainder of 2018 , of which approximately 82% is sold under financial derivatives and the remainder under normal purchase/normal sale contracts. Total planned generation for the remainder of 2018 is 14.1 TWh. Entergy may use standardized master netting agreements to help mitigate the credit risk of derivative instruments. These master agreements facilitate the netting of cash flows associated with a single counterparty and may include collateral requirements. Cash, letters of credit, and parental/affiliate guarantees may be obtained as security from counterparties in order to mitigate credit risk. The collateral agreements require a counterparty to post cash or letters of credit in the event an exposure exceeds an established threshold. The threshold represents an unsecured credit limit, which may be supported by a parental/affiliate guaranty, as determined in accordance with Entergy’s credit policy. In addition, collateral agreements allow for termination and liquidation of all positions in the event of a failure or inability to post collateral. Certain 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 depending on the mark-to-market values of the contracts. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee. As of June 30, 2018 , derivative contracts with seven counterparties were in a liability position (approximately $30 million total). In addition to the corporate guarantee, $5 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $3 million in cash collateral and $3 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. As of December 31, 2017 , derivative contracts with eight counterparties were in a liability position (approximately $65 million total). In addition to the corporate guarantee, $1 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $4 million in cash collateral and $34 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. If the Entergy Corporation credit rating falls below investment grade, Entergy would have to post collateral equal to the estimated outstanding liability under the contract at the applicable date. Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of short-term natural gas swaps that financially settle against NYMEX futures. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy Louisiana and Entergy New Orleans. The total volume of natural gas swaps outstanding as of June 30, 2018 is 39,670,000 MMBtu for Entergy, including 32,100,000 MMBtu for Entergy Louisiana and 7,570,000 MMBtu for Entergy Mississippi. Credit support for these natural gas swaps is covered by master agreements that do not require collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. During the second quarter 2018, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2018 through May 31, 2019. Financial transmission rights are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by Entergy Wholesale Commodities are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2018 is 108,294 GWh for Entergy, including 24,646 GWh for Entergy Arkansas, 46,135 GWh for Entergy Louisiana, 14,368 GWh for Entergy Mississippi, 5,184 GWh for Entergy New Orleans, and 17,512 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy Wholesale Commodities is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for Entergy Wholesale Commodities as of June 30, 2018 and December 31, 2017. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas and Entergy Mississippi as of June 30, 2018 and Entergy Arkansas, Entergy Mississippi, and Entergy Texas as of December 31, 2017. The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of June 30, 2018 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $29 ($21) $8 Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $11 ($11) $— Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $34 ($21) $13 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $30 ($10) $20 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $2 ($2) $— Entergy Wholesale Commodities Natural gas swaps Prepayments and other $3 $— $3 Utility Financial transmission rights Prepayments and other $42 $1 $41 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $2 ($2) $— Entergy Wholesale Commodities The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $19 ($19) $— Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $19 ($14) $5 Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $86 ($20) $66 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $17 ($14) $3 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $9 ($9) $— Entergy Wholesale Commodities Financial transmission rights Prepayments and other $22 ($1) $21 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $9 ($8) $1 Entergy Wholesale Commodities Natural gas swaps Other current liabilities $6 $— $6 Utility (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet (d) Excludes cash collateral in the amount of $5 million posted and $3 million held as of June 30, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $1 million posted and $3 million held as of June 30, 2018 and $34 million in letters of credit held as of December 31, 2017. The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain (loss) recognized in other comprehensive income Income Statement location Amount of gain reclassified from accumulated other comprehensive income into income (a) (In Millions) (In Millions) 2018 Electricity swaps and options ($80) Competitive businesses operating revenues $3 2017 Electricity swaps and options $43 Competitive businesses operating revenues $13 (a) Before taxes of $1 million and $4 million for the three months ended June 30, 2018 and 2017, respectively The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in other Income Statement location Amount of gain (loss) (In Millions) (In Millions) 2018 Electricity swaps and options $11 Competitive businesses operating revenues ($27) 2017 Electricity swaps and options $93 Competitive businesses operating revenues $64 (a) Before taxes of ($6) million and $22 million for the six months ended June 30, 2018 and 2017, respectively At each reporting period, Entergy measures its hedges for ineffectiveness. Any ineffectiveness is recognized in earnings during the period. The ineffective portion of cash flow hedges is recorded in competitive business operating revenues. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the three months ended June 30, 2018 and 2017 was ($15) million and $5 million , respectively. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the six months ended June 30, 2018 and 2017 was ($2) million and $4 million , respectively. Based on market prices as of June 30, 2018 , unrealized gains (losses) recorded in accumulated other comprehensive income on cash flow hedges relating to power sales totaled ($17) million of net unrealized losses. Approximately ($2) million is expected to be reclassified from accumulated other comprehensive income to operating revenues in the next twelve months. The actual amount reclassified from accumulated other comprehensive income, however, could vary due to future changes in market prices. Entergy may effectively liquidate a cash flow hedge instrument by entering into a contract offsetting the original hedge, and then de-designating the original hedge in this situation. Gains or losses accumulated in other comprehensive income prior to de-designation continue to be deferred in other comprehensive income until they are included in income as the original hedged transaction occurs. From the point of de-designation, the gains or losses on the original hedge and the offsetting contract are recorded as assets or liabilities on the balance sheet and offset as they flow through to earnings. The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of loss recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $41 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($9) Financial transmission rights $— Purchased power expense (b) $44 Electricity swaps and options ($5) (c) Competitive business operating revenues $— The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $73 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($16) Financial transmission rights $— Purchased power expense (b) $75 Electricity swaps and options $4 (c) Competitive business operating revenues $— (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items. The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. Fair Values The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments other than those instruments held by the Entergy Wholesale Commodities business are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments. Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are: • Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas hedge contracts. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase. • Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following: – quoted prices for similar assets or liabilities in active markets; – quoted prices for identical assets or liabilities in inactive markets; – inputs other than quoted prices that are observable for the asset or liability; or – inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 consists primarily of individually-owned debt instruments. • Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights and derivative power contracts used as cash flow hedges of power sales at merchant power plants. The values for power contract assets or liabilities are based on both observable inputs including public market prices and interest rates, and unobservable inputs such as implied volatilities, unit contingent discounts, expected basis differences, and credit adjusted counterparty interest rates. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Business Unit Risk Control group and the Accounting Policy and Entergy Wholesale Commodities Accounting group. The primary functions of the Business Unit Risk Control group include: gathering, validating and reporting market data, providing market risk analyses and valuations in support of Entergy Wholesale Commodities’ commercial transactions, developing and administering protocols for the management of market risks, and implementing and maintaining controls around changes to market data in the energy trading and risk management system. The Business Unit Risk Control group is also responsible for managing the energy trading and risk management system, forecasting revenues, forward positions and analysis. The Accounting Policy and Entergy Wholesale Commodities Accounting group performs functions related to market and counterparty settlements, revenue reporting and analysis and financial accounting. The Business Unit Risk Control group reports to the Vice President and Treasurer while the Accounting Policy and Entergy Wholesale Commodities Accounting group reports to the Chief Accounting Officer. The amounts reflected as the fair value of electricity swaps are based on the estimated amount that the contracts are in-the-money at the balance sheet date (treated as an asset) or out-of-the-money at the balance sheet date (treated as a liability) and would equal the estimated amount receivable to or payable by Entergy if the contracts were settled at that date. These derivative contracts include cash flow hedges that swap fixed for floating cash flows for sales of the output from the Entergy Wholesale Commodities business. The fair values are based on the mark-to-market comparison between the fixed contract prices and the floating prices determined each period from quoted forward power market prices. The differences between the fixed price in the swap contract and these market-related prices multiplied by the volume specified in the contract and discounted at the counterparties’ credit adjusted risk free rate are recorded as derivative contract assets or liabilities. For contracts that have unit contingent terms, a further discount is applied based on the historical relationship between contract and market prices for similar contract terms. The amounts reflected as the fair values of electricity options are valued based on a Black Scholes model, and are c |
Entergy Louisiana [Member] | |
Risk Management And Fair Values | RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Market Risk In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk, particularly power price and fuel price risk. The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use derivative instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs that are recovered from customers. 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 and capacity in the day ahead or spot markets. In addition to its forward physical power and gas contracts, Entergy Wholesale Commodities also uses a combination of financial contracts, including swaps, collars, and options, to mitigate commodity price risk. When the market price falls, the combination of instruments is expected to settle in gains that offset lower revenue from generation, which results in a more predictable cash flow. Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Hedging instruments and volumes are chosen based on ability to mitigate risk associated with future energy and capacity prices; however, other considerations are factored into hedge product and volume decisions including corporate liquidity, corporate credit ratings, counterparty credit risk, hedging costs, firm settlement risk, and product availability in the marketplace. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives. Derivatives Some derivative instruments are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sale transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity swaps and options and interest rate swaps. Entergy may enter into financially-settled swap and option contracts to manage market risk that may or may not be designated as hedging instruments. Entergy enters into derivatives to manage natural risks inherent in its physical or financial assets or liabilities. Electricity over-the-counter instruments and futures contracts that financially settle against day-ahead power pool prices are used to manage price exposure for Entergy Wholesale Commodities generation. The maximum length of time over which Entergy Wholesale Commodities is currently hedging the variability in future cash flows with derivatives for forecasted power transactions at June 30, 2018 is approximately 2.5 years. Planned generation currently under contract from Entergy Wholesale Commodities nuclear power plants is 98% for the remainder of 2018 , of which approximately 82% is sold under financial derivatives and the remainder under normal purchase/normal sale contracts. Total planned generation for the remainder of 2018 is 14.1 TWh. Entergy may use standardized master netting agreements to help mitigate the credit risk of derivative instruments. These master agreements facilitate the netting of cash flows associated with a single counterparty and may include collateral requirements. Cash, letters of credit, and parental/affiliate guarantees may be obtained as security from counterparties in order to mitigate credit risk. The collateral agreements require a counterparty to post cash or letters of credit in the event an exposure exceeds an established threshold. The threshold represents an unsecured credit limit, which may be supported by a parental/affiliate guaranty, as determined in accordance with Entergy’s credit policy. In addition, collateral agreements allow for termination and liquidation of all positions in the event of a failure or inability to post collateral. Certain 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 depending on the mark-to-market values of the contracts. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee. As of June 30, 2018 , derivative contracts with seven counterparties were in a liability position (approximately $30 million total). In addition to the corporate guarantee, $5 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $3 million in cash collateral and $3 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. As of December 31, 2017 , derivative contracts with eight counterparties were in a liability position (approximately $65 million total). In addition to the corporate guarantee, $1 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $4 million in cash collateral and $34 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. If the Entergy Corporation credit rating falls below investment grade, Entergy would have to post collateral equal to the estimated outstanding liability under the contract at the applicable date. Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of short-term natural gas swaps that financially settle against NYMEX futures. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy Louisiana and Entergy New Orleans. The total volume of natural gas swaps outstanding as of June 30, 2018 is 39,670,000 MMBtu for Entergy, including 32,100,000 MMBtu for Entergy Louisiana and 7,570,000 MMBtu for Entergy Mississippi. Credit support for these natural gas swaps is covered by master agreements that do not require collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. During the second quarter 2018, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2018 through May 31, 2019. Financial transmission rights are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by Entergy Wholesale Commodities are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2018 is 108,294 GWh for Entergy, including 24,646 GWh for Entergy Arkansas, 46,135 GWh for Entergy Louisiana, 14,368 GWh for Entergy Mississippi, 5,184 GWh for Entergy New Orleans, and 17,512 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy Wholesale Commodities is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for Entergy Wholesale Commodities as of June 30, 2018 and December 31, 2017. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas and Entergy Mississippi as of June 30, 2018 and Entergy Arkansas, Entergy Mississippi, and Entergy Texas as of December 31, 2017. The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of June 30, 2018 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $29 ($21) $8 Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $11 ($11) $— Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $34 ($21) $13 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $30 ($10) $20 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $2 ($2) $— Entergy Wholesale Commodities Natural gas swaps Prepayments and other $3 $— $3 Utility Financial transmission rights Prepayments and other $42 $1 $41 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $2 ($2) $— Entergy Wholesale Commodities The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $19 ($19) $— Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $19 ($14) $5 Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $86 ($20) $66 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $17 ($14) $3 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $9 ($9) $— Entergy Wholesale Commodities Financial transmission rights Prepayments and other $22 ($1) $21 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $9 ($8) $1 Entergy Wholesale Commodities Natural gas swaps Other current liabilities $6 $— $6 Utility (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet (d) Excludes cash collateral in the amount of $5 million posted and $3 million held as of June 30, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $1 million posted and $3 million held as of June 30, 2018 and $34 million in letters of credit held as of December 31, 2017. The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain (loss) recognized in other comprehensive income Income Statement location Amount of gain reclassified from accumulated other comprehensive income into income (a) (In Millions) (In Millions) 2018 Electricity swaps and options ($80) Competitive businesses operating revenues $3 2017 Electricity swaps and options $43 Competitive businesses operating revenues $13 (a) Before taxes of $1 million and $4 million for the three months ended June 30, 2018 and 2017, respectively The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in other Income Statement location Amount of gain (loss) (In Millions) (In Millions) 2018 Electricity swaps and options $11 Competitive businesses operating revenues ($27) 2017 Electricity swaps and options $93 Competitive businesses operating revenues $64 (a) Before taxes of ($6) million and $22 million for the six months ended June 30, 2018 and 2017, respectively At each reporting period, Entergy measures its hedges for ineffectiveness. Any ineffectiveness is recognized in earnings during the period. The ineffective portion of cash flow hedges is recorded in competitive business operating revenues. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the three months ended June 30, 2018 and 2017 was ($15) million and $5 million , respectively. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the six months ended June 30, 2018 and 2017 was ($2) million and $4 million , respectively. Based on market prices as of June 30, 2018 , unrealized gains (losses) recorded in accumulated other comprehensive income on cash flow hedges relating to power sales totaled ($17) million of net unrealized losses. Approximately ($2) million is expected to be reclassified from accumulated other comprehensive income to operating revenues in the next twelve months. The actual amount reclassified from accumulated other comprehensive income, however, could vary due to future changes in market prices. Entergy may effectively liquidate a cash flow hedge instrument by entering into a contract offsetting the original hedge, and then de-designating the original hedge in this situation. Gains or losses accumulated in other comprehensive income prior to de-designation continue to be deferred in other comprehensive income until they are included in income as the original hedged transaction occurs. From the point of de-designation, the gains or losses on the original hedge and the offsetting contract are recorded as assets or liabilities on the balance sheet and offset as they flow through to earnings. The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of loss recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $41 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($9) Financial transmission rights $— Purchased power expense (b) $44 Electricity swaps and options ($5) (c) Competitive business operating revenues $— The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $73 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($16) Financial transmission rights $— Purchased power expense (b) $75 Electricity swaps and options $4 (c) Competitive business operating revenues $— (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items. The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. Fair Values The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments other than those instruments held by the Entergy Wholesale Commodities business are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments. Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are: • Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas hedge contracts. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase. • Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following: – quoted prices for similar assets or liabilities in active markets; – quoted prices for identical assets or liabilities in inactive markets; – inputs other than quoted prices that are observable for the asset or liability; or – inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 consists primarily of individually-owned debt instruments. • Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights and derivative power contracts used as cash flow hedges of power sales at merchant power plants. The values for power contract assets or liabilities are based on both observable inputs including public market prices and interest rates, and unobservable inputs such as implied volatilities, unit contingent discounts, expected basis differences, and credit adjusted counterparty interest rates. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Business Unit Risk Control group and the Accounting Policy and Entergy Wholesale Commodities Accounting group. The primary functions of the Business Unit Risk Control group include: gathering, validating and reporting market data, providing market risk analyses and valuations in support of Entergy Wholesale Commodities’ commercial transactions, developing and administering protocols for the management of market risks, and implementing and maintaining controls around changes to market data in the energy trading and risk management system. The Business Unit Risk Control group is also responsible for managing the energy trading and risk management system, forecasting revenues, forward positions and analysis. The Accounting Policy and Entergy Wholesale Commodities Accounting group performs functions related to market and counterparty settlements, revenue reporting and analysis and financial accounting. The Business Unit Risk Control group reports to the Vice President and Treasurer while the Accounting Policy and Entergy Wholesale Commodities Accounting group reports to the Chief Accounting Officer. The amounts reflected as the fair value of electricity swaps are based on the estimated amount that the contracts are in-the-money at the balance sheet date (treated as an asset) or out-of-the-money at the balance sheet date (treated as a liability) and would equal the estimated amount receivable to or payable by Entergy if the contracts were settled at that date. These derivative contracts include cash flow hedges that swap fixed for floating cash flows for sales of the output from the Entergy Wholesale Commodities business. The fair values are based on the mark-to-market comparison between the fixed contract prices and the floating prices determined each period from quoted forward power market prices. The differences between the fixed price in the swap contract and these market-related prices multiplied by the volume specified in the contract and discounted at the counterparties’ credit adjusted risk free rate are recorded as derivative contract assets or liabilities. For contracts that have unit contingent terms, a further discount is applied based on the historical relationship between contract and market prices for similar contract terms. The amounts reflected as the fair values of electricity options are valued based on a Black Scholes model, and are c |
Entergy Mississippi [Member] | |
Risk Management And Fair Values | RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Market Risk In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk, particularly power price and fuel price risk. The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use derivative instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs that are recovered from customers. 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 and capacity in the day ahead or spot markets. In addition to its forward physical power and gas contracts, Entergy Wholesale Commodities also uses a combination of financial contracts, including swaps, collars, and options, to mitigate commodity price risk. When the market price falls, the combination of instruments is expected to settle in gains that offset lower revenue from generation, which results in a more predictable cash flow. Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Hedging instruments and volumes are chosen based on ability to mitigate risk associated with future energy and capacity prices; however, other considerations are factored into hedge product and volume decisions including corporate liquidity, corporate credit ratings, counterparty credit risk, hedging costs, firm settlement risk, and product availability in the marketplace. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives. Derivatives Some derivative instruments are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sale transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity swaps and options and interest rate swaps. Entergy may enter into financially-settled swap and option contracts to manage market risk that may or may not be designated as hedging instruments. Entergy enters into derivatives to manage natural risks inherent in its physical or financial assets or liabilities. Electricity over-the-counter instruments and futures contracts that financially settle against day-ahead power pool prices are used to manage price exposure for Entergy Wholesale Commodities generation. The maximum length of time over which Entergy Wholesale Commodities is currently hedging the variability in future cash flows with derivatives for forecasted power transactions at June 30, 2018 is approximately 2.5 years. Planned generation currently under contract from Entergy Wholesale Commodities nuclear power plants is 98% for the remainder of 2018 , of which approximately 82% is sold under financial derivatives and the remainder under normal purchase/normal sale contracts. Total planned generation for the remainder of 2018 is 14.1 TWh. Entergy may use standardized master netting agreements to help mitigate the credit risk of derivative instruments. These master agreements facilitate the netting of cash flows associated with a single counterparty and may include collateral requirements. Cash, letters of credit, and parental/affiliate guarantees may be obtained as security from counterparties in order to mitigate credit risk. The collateral agreements require a counterparty to post cash or letters of credit in the event an exposure exceeds an established threshold. The threshold represents an unsecured credit limit, which may be supported by a parental/affiliate guaranty, as determined in accordance with Entergy’s credit policy. In addition, collateral agreements allow for termination and liquidation of all positions in the event of a failure or inability to post collateral. Certain 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 depending on the mark-to-market values of the contracts. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee. As of June 30, 2018 , derivative contracts with seven counterparties were in a liability position (approximately $30 million total). In addition to the corporate guarantee, $5 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $3 million in cash collateral and $3 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. As of December 31, 2017 , derivative contracts with eight counterparties were in a liability position (approximately $65 million total). In addition to the corporate guarantee, $1 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $4 million in cash collateral and $34 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. If the Entergy Corporation credit rating falls below investment grade, Entergy would have to post collateral equal to the estimated outstanding liability under the contract at the applicable date. Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of short-term natural gas swaps that financially settle against NYMEX futures. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy Louisiana and Entergy New Orleans. The total volume of natural gas swaps outstanding as of June 30, 2018 is 39,670,000 MMBtu for Entergy, including 32,100,000 MMBtu for Entergy Louisiana and 7,570,000 MMBtu for Entergy Mississippi. Credit support for these natural gas swaps is covered by master agreements that do not require collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. During the second quarter 2018, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2018 through May 31, 2019. Financial transmission rights are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by Entergy Wholesale Commodities are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2018 is 108,294 GWh for Entergy, including 24,646 GWh for Entergy Arkansas, 46,135 GWh for Entergy Louisiana, 14,368 GWh for Entergy Mississippi, 5,184 GWh for Entergy New Orleans, and 17,512 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy Wholesale Commodities is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for Entergy Wholesale Commodities as of June 30, 2018 and December 31, 2017. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas and Entergy Mississippi as of June 30, 2018 and Entergy Arkansas, Entergy Mississippi, and Entergy Texas as of December 31, 2017. The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of June 30, 2018 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $29 ($21) $8 Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $11 ($11) $— Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $34 ($21) $13 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $30 ($10) $20 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $2 ($2) $— Entergy Wholesale Commodities Natural gas swaps Prepayments and other $3 $— $3 Utility Financial transmission rights Prepayments and other $42 $1 $41 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $2 ($2) $— Entergy Wholesale Commodities The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $19 ($19) $— Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $19 ($14) $5 Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $86 ($20) $66 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $17 ($14) $3 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $9 ($9) $— Entergy Wholesale Commodities Financial transmission rights Prepayments and other $22 ($1) $21 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $9 ($8) $1 Entergy Wholesale Commodities Natural gas swaps Other current liabilities $6 $— $6 Utility (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet (d) Excludes cash collateral in the amount of $5 million posted and $3 million held as of June 30, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $1 million posted and $3 million held as of June 30, 2018 and $34 million in letters of credit held as of December 31, 2017. The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain (loss) recognized in other comprehensive income Income Statement location Amount of gain reclassified from accumulated other comprehensive income into income (a) (In Millions) (In Millions) 2018 Electricity swaps and options ($80) Competitive businesses operating revenues $3 2017 Electricity swaps and options $43 Competitive businesses operating revenues $13 (a) Before taxes of $1 million and $4 million for the three months ended June 30, 2018 and 2017, respectively The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in other Income Statement location Amount of gain (loss) (In Millions) (In Millions) 2018 Electricity swaps and options $11 Competitive businesses operating revenues ($27) 2017 Electricity swaps and options $93 Competitive businesses operating revenues $64 (a) Before taxes of ($6) million and $22 million for the six months ended June 30, 2018 and 2017, respectively At each reporting period, Entergy measures its hedges for ineffectiveness. Any ineffectiveness is recognized in earnings during the period. The ineffective portion of cash flow hedges is recorded in competitive business operating revenues. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the three months ended June 30, 2018 and 2017 was ($15) million and $5 million , respectively. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the six months ended June 30, 2018 and 2017 was ($2) million and $4 million , respectively. Based on market prices as of June 30, 2018 , unrealized gains (losses) recorded in accumulated other comprehensive income on cash flow hedges relating to power sales totaled ($17) million of net unrealized losses. Approximately ($2) million is expected to be reclassified from accumulated other comprehensive income to operating revenues in the next twelve months. The actual amount reclassified from accumulated other comprehensive income, however, could vary due to future changes in market prices. Entergy may effectively liquidate a cash flow hedge instrument by entering into a contract offsetting the original hedge, and then de-designating the original hedge in this situation. Gains or losses accumulated in other comprehensive income prior to de-designation continue to be deferred in other comprehensive income until they are included in income as the original hedged transaction occurs. From the point of de-designation, the gains or losses on the original hedge and the offsetting contract are recorded as assets or liabilities on the balance sheet and offset as they flow through to earnings. The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of loss recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $41 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($9) Financial transmission rights $— Purchased power expense (b) $44 Electricity swaps and options ($5) (c) Competitive business operating revenues $— The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $73 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($16) Financial transmission rights $— Purchased power expense (b) $75 Electricity swaps and options $4 (c) Competitive business operating revenues $— (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items. The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. Fair Values The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments other than those instruments held by the Entergy Wholesale Commodities business are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments. Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are: • Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas hedge contracts. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase. • Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following: – quoted prices for similar assets or liabilities in active markets; – quoted prices for identical assets or liabilities in inactive markets; – inputs other than quoted prices that are observable for the asset or liability; or – inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 consists primarily of individually-owned debt instruments. • Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights and derivative power contracts used as cash flow hedges of power sales at merchant power plants. The values for power contract assets or liabilities are based on both observable inputs including public market prices and interest rates, and unobservable inputs such as implied volatilities, unit contingent discounts, expected basis differences, and credit adjusted counterparty interest rates. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Business Unit Risk Control group and the Accounting Policy and Entergy Wholesale Commodities Accounting group. The primary functions of the Business Unit Risk Control group include: gathering, validating and reporting market data, providing market risk analyses and valuations in support of Entergy Wholesale Commodities’ commercial transactions, developing and administering protocols for the management of market risks, and implementing and maintaining controls around changes to market data in the energy trading and risk management system. The Business Unit Risk Control group is also responsible for managing the energy trading and risk management system, forecasting revenues, forward positions and analysis. The Accounting Policy and Entergy Wholesale Commodities Accounting group performs functions related to market and counterparty settlements, revenue reporting and analysis and financial accounting. The Business Unit Risk Control group reports to the Vice President and Treasurer while the Accounting Policy and Entergy Wholesale Commodities Accounting group reports to the Chief Accounting Officer. The amounts reflected as the fair value of electricity swaps are based on the estimated amount that the contracts are in-the-money at the balance sheet date (treated as an asset) or out-of-the-money at the balance sheet date (treated as a liability) and would equal the estimated amount receivable to or payable by Entergy if the contracts were settled at that date. These derivative contracts include cash flow hedges that swap fixed for floating cash flows for sales of the output from the Entergy Wholesale Commodities business. The fair values are based on the mark-to-market comparison between the fixed contract prices and the floating prices determined each period from quoted forward power market prices. The differences between the fixed price in the swap contract and these market-related prices multiplied by the volume specified in the contract and discounted at the counterparties’ credit adjusted risk free rate are recorded as derivative contract assets or liabilities. For contracts that have unit contingent terms, a further discount is applied based on the historical relationship between contract and market prices for similar contract terms. The amounts reflected as the fair values of electricity options are valued based on a Black Scholes model, and are c |
Entergy New Orleans [Member] | |
Risk Management And Fair Values | RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Market Risk In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk, particularly power price and fuel price risk. The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use derivative instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs that are recovered from customers. 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 and capacity in the day ahead or spot markets. In addition to its forward physical power and gas contracts, Entergy Wholesale Commodities also uses a combination of financial contracts, including swaps, collars, and options, to mitigate commodity price risk. When the market price falls, the combination of instruments is expected to settle in gains that offset lower revenue from generation, which results in a more predictable cash flow. Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Hedging instruments and volumes are chosen based on ability to mitigate risk associated with future energy and capacity prices; however, other considerations are factored into hedge product and volume decisions including corporate liquidity, corporate credit ratings, counterparty credit risk, hedging costs, firm settlement risk, and product availability in the marketplace. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives. Derivatives Some derivative instruments are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sale transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity swaps and options and interest rate swaps. Entergy may enter into financially-settled swap and option contracts to manage market risk that may or may not be designated as hedging instruments. Entergy enters into derivatives to manage natural risks inherent in its physical or financial assets or liabilities. Electricity over-the-counter instruments and futures contracts that financially settle against day-ahead power pool prices are used to manage price exposure for Entergy Wholesale Commodities generation. The maximum length of time over which Entergy Wholesale Commodities is currently hedging the variability in future cash flows with derivatives for forecasted power transactions at June 30, 2018 is approximately 2.5 years. Planned generation currently under contract from Entergy Wholesale Commodities nuclear power plants is 98% for the remainder of 2018 , of which approximately 82% is sold under financial derivatives and the remainder under normal purchase/normal sale contracts. Total planned generation for the remainder of 2018 is 14.1 TWh. Entergy may use standardized master netting agreements to help mitigate the credit risk of derivative instruments. These master agreements facilitate the netting of cash flows associated with a single counterparty and may include collateral requirements. Cash, letters of credit, and parental/affiliate guarantees may be obtained as security from counterparties in order to mitigate credit risk. The collateral agreements require a counterparty to post cash or letters of credit in the event an exposure exceeds an established threshold. The threshold represents an unsecured credit limit, which may be supported by a parental/affiliate guaranty, as determined in accordance with Entergy’s credit policy. In addition, collateral agreements allow for termination and liquidation of all positions in the event of a failure or inability to post collateral. Certain 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 depending on the mark-to-market values of the contracts. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee. As of June 30, 2018 , derivative contracts with seven counterparties were in a liability position (approximately $30 million total). In addition to the corporate guarantee, $5 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $3 million in cash collateral and $3 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. As of December 31, 2017 , derivative contracts with eight counterparties were in a liability position (approximately $65 million total). In addition to the corporate guarantee, $1 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $4 million in cash collateral and $34 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. If the Entergy Corporation credit rating falls below investment grade, Entergy would have to post collateral equal to the estimated outstanding liability under the contract at the applicable date. Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of short-term natural gas swaps that financially settle against NYMEX futures. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy Louisiana and Entergy New Orleans. The total volume of natural gas swaps outstanding as of June 30, 2018 is 39,670,000 MMBtu for Entergy, including 32,100,000 MMBtu for Entergy Louisiana and 7,570,000 MMBtu for Entergy Mississippi. Credit support for these natural gas swaps is covered by master agreements that do not require collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. During the second quarter 2018, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2018 through May 31, 2019. Financial transmission rights are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by Entergy Wholesale Commodities are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2018 is 108,294 GWh for Entergy, including 24,646 GWh for Entergy Arkansas, 46,135 GWh for Entergy Louisiana, 14,368 GWh for Entergy Mississippi, 5,184 GWh for Entergy New Orleans, and 17,512 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy Wholesale Commodities is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for Entergy Wholesale Commodities as of June 30, 2018 and December 31, 2017. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas and Entergy Mississippi as of June 30, 2018 and Entergy Arkansas, Entergy Mississippi, and Entergy Texas as of December 31, 2017. The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of June 30, 2018 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $29 ($21) $8 Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $11 ($11) $— Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $34 ($21) $13 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $30 ($10) $20 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $2 ($2) $— Entergy Wholesale Commodities Natural gas swaps Prepayments and other $3 $— $3 Utility Financial transmission rights Prepayments and other $42 $1 $41 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $2 ($2) $— Entergy Wholesale Commodities The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $19 ($19) $— Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $19 ($14) $5 Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $86 ($20) $66 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $17 ($14) $3 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $9 ($9) $— Entergy Wholesale Commodities Financial transmission rights Prepayments and other $22 ($1) $21 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $9 ($8) $1 Entergy Wholesale Commodities Natural gas swaps Other current liabilities $6 $— $6 Utility (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet (d) Excludes cash collateral in the amount of $5 million posted and $3 million held as of June 30, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $1 million posted and $3 million held as of June 30, 2018 and $34 million in letters of credit held as of December 31, 2017. The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain (loss) recognized in other comprehensive income Income Statement location Amount of gain reclassified from accumulated other comprehensive income into income (a) (In Millions) (In Millions) 2018 Electricity swaps and options ($80) Competitive businesses operating revenues $3 2017 Electricity swaps and options $43 Competitive businesses operating revenues $13 (a) Before taxes of $1 million and $4 million for the three months ended June 30, 2018 and 2017, respectively The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in other Income Statement location Amount of gain (loss) (In Millions) (In Millions) 2018 Electricity swaps and options $11 Competitive businesses operating revenues ($27) 2017 Electricity swaps and options $93 Competitive businesses operating revenues $64 (a) Before taxes of ($6) million and $22 million for the six months ended June 30, 2018 and 2017, respectively At each reporting period, Entergy measures its hedges for ineffectiveness. Any ineffectiveness is recognized in earnings during the period. The ineffective portion of cash flow hedges is recorded in competitive business operating revenues. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the three months ended June 30, 2018 and 2017 was ($15) million and $5 million , respectively. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the six months ended June 30, 2018 and 2017 was ($2) million and $4 million , respectively. Based on market prices as of June 30, 2018 , unrealized gains (losses) recorded in accumulated other comprehensive income on cash flow hedges relating to power sales totaled ($17) million of net unrealized losses. Approximately ($2) million is expected to be reclassified from accumulated other comprehensive income to operating revenues in the next twelve months. The actual amount reclassified from accumulated other comprehensive income, however, could vary due to future changes in market prices. Entergy may effectively liquidate a cash flow hedge instrument by entering into a contract offsetting the original hedge, and then de-designating the original hedge in this situation. Gains or losses accumulated in other comprehensive income prior to de-designation continue to be deferred in other comprehensive income until they are included in income as the original hedged transaction occurs. From the point of de-designation, the gains or losses on the original hedge and the offsetting contract are recorded as assets or liabilities on the balance sheet and offset as they flow through to earnings. The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of loss recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $41 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($9) Financial transmission rights $— Purchased power expense (b) $44 Electricity swaps and options ($5) (c) Competitive business operating revenues $— The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $73 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($16) Financial transmission rights $— Purchased power expense (b) $75 Electricity swaps and options $4 (c) Competitive business operating revenues $— (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items. The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. Fair Values The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments other than those instruments held by the Entergy Wholesale Commodities business are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments. Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are: • Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas hedge contracts. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase. • Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following: – quoted prices for similar assets or liabilities in active markets; – quoted prices for identical assets or liabilities in inactive markets; – inputs other than quoted prices that are observable for the asset or liability; or – inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 consists primarily of individually-owned debt instruments. • Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights and derivative power contracts used as cash flow hedges of power sales at merchant power plants. The values for power contract assets or liabilities are based on both observable inputs including public market prices and interest rates, and unobservable inputs such as implied volatilities, unit contingent discounts, expected basis differences, and credit adjusted counterparty interest rates. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Business Unit Risk Control group and the Accounting Policy and Entergy Wholesale Commodities Accounting group. The primary functions of the Business Unit Risk Control group include: gathering, validating and reporting market data, providing market risk analyses and valuations in support of Entergy Wholesale Commodities’ commercial transactions, developing and administering protocols for the management of market risks, and implementing and maintaining controls around changes to market data in the energy trading and risk management system. The Business Unit Risk Control group is also responsible for managing the energy trading and risk management system, forecasting revenues, forward positions and analysis. The Accounting Policy and Entergy Wholesale Commodities Accounting group performs functions related to market and counterparty settlements, revenue reporting and analysis and financial accounting. The Business Unit Risk Control group reports to the Vice President and Treasurer while the Accounting Policy and Entergy Wholesale Commodities Accounting group reports to the Chief Accounting Officer. The amounts reflected as the fair value of electricity swaps are based on the estimated amount that the contracts are in-the-money at the balance sheet date (treated as an asset) or out-of-the-money at the balance sheet date (treated as a liability) and would equal the estimated amount receivable to or payable by Entergy if the contracts were settled at that date. These derivative contracts include cash flow hedges that swap fixed for floating cash flows for sales of the output from the Entergy Wholesale Commodities business. The fair values are based on the mark-to-market comparison between the fixed contract prices and the floating prices determined each period from quoted forward power market prices. The differences between the fixed price in the swap contract and these market-related prices multiplied by the volume specified in the contract and discounted at the counterparties’ credit adjusted risk free rate are recorded as derivative contract assets or liabilities. For contracts that have unit contingent terms, a further discount is applied based on the historical relationship between contract and market prices for similar contract terms. The amounts reflected as the fair values of electricity options are valued based on a Black Scholes model, and are c |
Entergy Texas [Member] | |
Risk Management And Fair Values | RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Market Risk In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk, particularly power price and fuel price risk. The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use derivative instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs that are recovered from customers. 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 and capacity in the day ahead or spot markets. In addition to its forward physical power and gas contracts, Entergy Wholesale Commodities also uses a combination of financial contracts, including swaps, collars, and options, to mitigate commodity price risk. When the market price falls, the combination of instruments is expected to settle in gains that offset lower revenue from generation, which results in a more predictable cash flow. Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Hedging instruments and volumes are chosen based on ability to mitigate risk associated with future energy and capacity prices; however, other considerations are factored into hedge product and volume decisions including corporate liquidity, corporate credit ratings, counterparty credit risk, hedging costs, firm settlement risk, and product availability in the marketplace. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives. Derivatives Some derivative instruments are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sale transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity swaps and options and interest rate swaps. Entergy may enter into financially-settled swap and option contracts to manage market risk that may or may not be designated as hedging instruments. Entergy enters into derivatives to manage natural risks inherent in its physical or financial assets or liabilities. Electricity over-the-counter instruments and futures contracts that financially settle against day-ahead power pool prices are used to manage price exposure for Entergy Wholesale Commodities generation. The maximum length of time over which Entergy Wholesale Commodities is currently hedging the variability in future cash flows with derivatives for forecasted power transactions at June 30, 2018 is approximately 2.5 years. Planned generation currently under contract from Entergy Wholesale Commodities nuclear power plants is 98% for the remainder of 2018 , of which approximately 82% is sold under financial derivatives and the remainder under normal purchase/normal sale contracts. Total planned generation for the remainder of 2018 is 14.1 TWh. Entergy may use standardized master netting agreements to help mitigate the credit risk of derivative instruments. These master agreements facilitate the netting of cash flows associated with a single counterparty and may include collateral requirements. Cash, letters of credit, and parental/affiliate guarantees may be obtained as security from counterparties in order to mitigate credit risk. The collateral agreements require a counterparty to post cash or letters of credit in the event an exposure exceeds an established threshold. The threshold represents an unsecured credit limit, which may be supported by a parental/affiliate guaranty, as determined in accordance with Entergy’s credit policy. In addition, collateral agreements allow for termination and liquidation of all positions in the event of a failure or inability to post collateral. Certain 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 depending on the mark-to-market values of the contracts. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee. As of June 30, 2018 , derivative contracts with seven counterparties were in a liability position (approximately $30 million total). In addition to the corporate guarantee, $5 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $3 million in cash collateral and $3 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. As of December 31, 2017 , derivative contracts with eight counterparties were in a liability position (approximately $65 million total). In addition to the corporate guarantee, $1 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $4 million in cash collateral and $34 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. If the Entergy Corporation credit rating falls below investment grade, Entergy would have to post collateral equal to the estimated outstanding liability under the contract at the applicable date. Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of short-term natural gas swaps that financially settle against NYMEX futures. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy Louisiana and Entergy New Orleans. The total volume of natural gas swaps outstanding as of June 30, 2018 is 39,670,000 MMBtu for Entergy, including 32,100,000 MMBtu for Entergy Louisiana and 7,570,000 MMBtu for Entergy Mississippi. Credit support for these natural gas swaps is covered by master agreements that do not require collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. During the second quarter 2018, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2018 through May 31, 2019. Financial transmission rights are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by Entergy Wholesale Commodities are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2018 is 108,294 GWh for Entergy, including 24,646 GWh for Entergy Arkansas, 46,135 GWh for Entergy Louisiana, 14,368 GWh for Entergy Mississippi, 5,184 GWh for Entergy New Orleans, and 17,512 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy Wholesale Commodities is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for Entergy Wholesale Commodities as of June 30, 2018 and December 31, 2017. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas and Entergy Mississippi as of June 30, 2018 and Entergy Arkansas, Entergy Mississippi, and Entergy Texas as of December 31, 2017. The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of June 30, 2018 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $29 ($21) $8 Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $11 ($11) $— Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $34 ($21) $13 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $30 ($10) $20 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $2 ($2) $— Entergy Wholesale Commodities Natural gas swaps Prepayments and other $3 $— $3 Utility Financial transmission rights Prepayments and other $42 $1 $41 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $2 ($2) $— Entergy Wholesale Commodities The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $19 ($19) $— Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $19 ($14) $5 Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $86 ($20) $66 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $17 ($14) $3 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $9 ($9) $— Entergy Wholesale Commodities Financial transmission rights Prepayments and other $22 ($1) $21 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $9 ($8) $1 Entergy Wholesale Commodities Natural gas swaps Other current liabilities $6 $— $6 Utility (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet (d) Excludes cash collateral in the amount of $5 million posted and $3 million held as of June 30, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $1 million posted and $3 million held as of June 30, 2018 and $34 million in letters of credit held as of December 31, 2017. The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain (loss) recognized in other comprehensive income Income Statement location Amount of gain reclassified from accumulated other comprehensive income into income (a) (In Millions) (In Millions) 2018 Electricity swaps and options ($80) Competitive businesses operating revenues $3 2017 Electricity swaps and options $43 Competitive businesses operating revenues $13 (a) Before taxes of $1 million and $4 million for the three months ended June 30, 2018 and 2017, respectively The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in other Income Statement location Amount of gain (loss) (In Millions) (In Millions) 2018 Electricity swaps and options $11 Competitive businesses operating revenues ($27) 2017 Electricity swaps and options $93 Competitive businesses operating revenues $64 (a) Before taxes of ($6) million and $22 million for the six months ended June 30, 2018 and 2017, respectively At each reporting period, Entergy measures its hedges for ineffectiveness. Any ineffectiveness is recognized in earnings during the period. The ineffective portion of cash flow hedges is recorded in competitive business operating revenues. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the three months ended June 30, 2018 and 2017 was ($15) million and $5 million , respectively. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the six months ended June 30, 2018 and 2017 was ($2) million and $4 million , respectively. Based on market prices as of June 30, 2018 , unrealized gains (losses) recorded in accumulated other comprehensive income on cash flow hedges relating to power sales totaled ($17) million of net unrealized losses. Approximately ($2) million is expected to be reclassified from accumulated other comprehensive income to operating revenues in the next twelve months. The actual amount reclassified from accumulated other comprehensive income, however, could vary due to future changes in market prices. Entergy may effectively liquidate a cash flow hedge instrument by entering into a contract offsetting the original hedge, and then de-designating the original hedge in this situation. Gains or losses accumulated in other comprehensive income prior to de-designation continue to be deferred in other comprehensive income until they are included in income as the original hedged transaction occurs. From the point of de-designation, the gains or losses on the original hedge and the offsetting contract are recorded as assets or liabilities on the balance sheet and offset as they flow through to earnings. The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of loss recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $41 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($9) Financial transmission rights $— Purchased power expense (b) $44 Electricity swaps and options ($5) (c) Competitive business operating revenues $— The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $73 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($16) Financial transmission rights $— Purchased power expense (b) $75 Electricity swaps and options $4 (c) Competitive business operating revenues $— (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items. The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. Fair Values The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments other than those instruments held by the Entergy Wholesale Commodities business are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments. Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are: • Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas hedge contracts. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase. • Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following: – quoted prices for similar assets or liabilities in active markets; – quoted prices for identical assets or liabilities in inactive markets; – inputs other than quoted prices that are observable for the asset or liability; or – inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 consists primarily of individually-owned debt instruments. • Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights and derivative power contracts used as cash flow hedges of power sales at merchant power plants. The values for power contract assets or liabilities are based on both observable inputs including public market prices and interest rates, and unobservable inputs such as implied volatilities, unit contingent discounts, expected basis differences, and credit adjusted counterparty interest rates. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Business Unit Risk Control group and the Accounting Policy and Entergy Wholesale Commodities Accounting group. The primary functions of the Business Unit Risk Control group include: gathering, validating and reporting market data, providing market risk analyses and valuations in support of Entergy Wholesale Commodities’ commercial transactions, developing and administering protocols for the management of market risks, and implementing and maintaining controls around changes to market data in the energy trading and risk management system. The Business Unit Risk Control group is also responsible for managing the energy trading and risk management system, forecasting revenues, forward positions and analysis. The Accounting Policy and Entergy Wholesale Commodities Accounting group performs functions related to market and counterparty settlements, revenue reporting and analysis and financial accounting. The Business Unit Risk Control group reports to the Vice President and Treasurer while the Accounting Policy and Entergy Wholesale Commodities Accounting group reports to the Chief Accounting Officer. The amounts reflected as the fair value of electricity swaps are based on the estimated amount that the contracts are in-the-money at the balance sheet date (treated as an asset) or out-of-the-money at the balance sheet date (treated as a liability) and would equal the estimated amount receivable to or payable by Entergy if the contracts were settled at that date. These derivative contracts include cash flow hedges that swap fixed for floating cash flows for sales of the output from the Entergy Wholesale Commodities business. The fair values are based on the mark-to-market comparison between the fixed contract prices and the floating prices determined each period from quoted forward power market prices. The differences between the fixed price in the swap contract and these market-related prices multiplied by the volume specified in the contract and discounted at the counterparties’ credit adjusted risk free rate are recorded as derivative contract assets or liabilities. For contracts that have unit contingent terms, a further discount is applied based on the historical relationship between contract and market prices for similar contract terms. The amounts reflected as the fair values of electricity options are valued based on a Black Scholes model, and are c |
System Energy [Member] | |
Risk Management And Fair Values | RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Market Risk In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk, particularly power price and fuel price risk. The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use derivative instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs that are recovered from customers. 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 and capacity in the day ahead or spot markets. In addition to its forward physical power and gas contracts, Entergy Wholesale Commodities also uses a combination of financial contracts, including swaps, collars, and options, to mitigate commodity price risk. When the market price falls, the combination of instruments is expected to settle in gains that offset lower revenue from generation, which results in a more predictable cash flow. Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Hedging instruments and volumes are chosen based on ability to mitigate risk associated with future energy and capacity prices; however, other considerations are factored into hedge product and volume decisions including corporate liquidity, corporate credit ratings, counterparty credit risk, hedging costs, firm settlement risk, and product availability in the marketplace. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives. Derivatives Some derivative instruments are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sale transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity swaps and options and interest rate swaps. Entergy may enter into financially-settled swap and option contracts to manage market risk that may or may not be designated as hedging instruments. Entergy enters into derivatives to manage natural risks inherent in its physical or financial assets or liabilities. Electricity over-the-counter instruments and futures contracts that financially settle against day-ahead power pool prices are used to manage price exposure for Entergy Wholesale Commodities generation. The maximum length of time over which Entergy Wholesale Commodities is currently hedging the variability in future cash flows with derivatives for forecasted power transactions at June 30, 2018 is approximately 2.5 years. Planned generation currently under contract from Entergy Wholesale Commodities nuclear power plants is 98% for the remainder of 2018 , of which approximately 82% is sold under financial derivatives and the remainder under normal purchase/normal sale contracts. Total planned generation for the remainder of 2018 is 14.1 TWh. Entergy may use standardized master netting agreements to help mitigate the credit risk of derivative instruments. These master agreements facilitate the netting of cash flows associated with a single counterparty and may include collateral requirements. Cash, letters of credit, and parental/affiliate guarantees may be obtained as security from counterparties in order to mitigate credit risk. The collateral agreements require a counterparty to post cash or letters of credit in the event an exposure exceeds an established threshold. The threshold represents an unsecured credit limit, which may be supported by a parental/affiliate guaranty, as determined in accordance with Entergy’s credit policy. In addition, collateral agreements allow for termination and liquidation of all positions in the event of a failure or inability to post collateral. Certain 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 depending on the mark-to-market values of the contracts. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee. As of June 30, 2018 , derivative contracts with seven counterparties were in a liability position (approximately $30 million total). In addition to the corporate guarantee, $5 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $3 million in cash collateral and $3 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. As of December 31, 2017 , derivative contracts with eight counterparties were in a liability position (approximately $65 million total). In addition to the corporate guarantee, $1 million in cash collateral was required to be posted by the Entergy subsidiary to its counterparties and $4 million in cash collateral and $34 million in letters of credit were required to be posted by its counterparties to the Entergy subsidiary. If the Entergy Corporation credit rating falls below investment grade, Entergy would have to post collateral equal to the estimated outstanding liability under the contract at the applicable date. Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of short-term natural gas swaps that financially settle against NYMEX futures. These swaps are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy Louisiana and Entergy New Orleans. The total volume of natural gas swaps outstanding as of June 30, 2018 is 39,670,000 MMBtu for Entergy, including 32,100,000 MMBtu for Entergy Louisiana and 7,570,000 MMBtu for Entergy Mississippi. Credit support for these natural gas swaps is covered by master agreements that do not require collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral. During the second quarter 2018, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2018 through May 31, 2019. Financial transmission rights are derivative instruments which represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by Entergy Wholesale Commodities are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2018 is 108,294 GWh for Entergy, including 24,646 GWh for Entergy Arkansas, 46,135 GWh for Entergy Louisiana, 14,368 GWh for Entergy Mississippi, 5,184 GWh for Entergy New Orleans, and 17,512 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy Wholesale Commodities is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for Entergy Wholesale Commodities as of June 30, 2018 and December 31, 2017. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas and Entergy Mississippi as of June 30, 2018 and Entergy Arkansas, Entergy Mississippi, and Entergy Texas as of December 31, 2017. The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of June 30, 2018 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $29 ($21) $8 Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $11 ($11) $— Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $34 ($21) $13 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $30 ($10) $20 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $2 ($2) $— Entergy Wholesale Commodities Natural gas swaps Prepayments and other $3 $— $3 Utility Financial transmission rights Prepayments and other $42 $1 $41 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $2 ($2) $— Entergy Wholesale Commodities The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $19 ($19) $— Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $19 ($14) $5 Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $86 ($20) $66 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $17 ($14) $3 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $9 ($9) $— Entergy Wholesale Commodities Financial transmission rights Prepayments and other $22 ($1) $21 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $9 ($8) $1 Entergy Wholesale Commodities Natural gas swaps Other current liabilities $6 $— $6 Utility (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet (d) Excludes cash collateral in the amount of $5 million posted and $3 million held as of June 30, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $1 million posted and $3 million held as of June 30, 2018 and $34 million in letters of credit held as of December 31, 2017. The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain (loss) recognized in other comprehensive income Income Statement location Amount of gain reclassified from accumulated other comprehensive income into income (a) (In Millions) (In Millions) 2018 Electricity swaps and options ($80) Competitive businesses operating revenues $3 2017 Electricity swaps and options $43 Competitive businesses operating revenues $13 (a) Before taxes of $1 million and $4 million for the three months ended June 30, 2018 and 2017, respectively The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in other Income Statement location Amount of gain (loss) (In Millions) (In Millions) 2018 Electricity swaps and options $11 Competitive businesses operating revenues ($27) 2017 Electricity swaps and options $93 Competitive businesses operating revenues $64 (a) Before taxes of ($6) million and $22 million for the six months ended June 30, 2018 and 2017, respectively At each reporting period, Entergy measures its hedges for ineffectiveness. Any ineffectiveness is recognized in earnings during the period. The ineffective portion of cash flow hedges is recorded in competitive business operating revenues. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the three months ended June 30, 2018 and 2017 was ($15) million and $5 million , respectively. The change in fair value of Entergy’s cash flow hedges due to ineffectiveness during the six months ended June 30, 2018 and 2017 was ($2) million and $4 million , respectively. Based on market prices as of June 30, 2018 , unrealized gains (losses) recorded in accumulated other comprehensive income on cash flow hedges relating to power sales totaled ($17) million of net unrealized losses. Approximately ($2) million is expected to be reclassified from accumulated other comprehensive income to operating revenues in the next twelve months. The actual amount reclassified from accumulated other comprehensive income, however, could vary due to future changes in market prices. Entergy may effectively liquidate a cash flow hedge instrument by entering into a contract offsetting the original hedge, and then de-designating the original hedge in this situation. Gains or losses accumulated in other comprehensive income prior to de-designation continue to be deferred in other comprehensive income until they are included in income as the original hedged transaction occurs. From the point of de-designation, the gains or losses on the original hedge and the offsetting contract are recorded as assets or liabilities on the balance sheet and offset as they flow through to earnings. The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of loss recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $41 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($9) Financial transmission rights $— Purchased power expense (b) $44 Electricity swaps and options ($5) (c) Competitive business operating revenues $— The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $73 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($16) Financial transmission rights $— Purchased power expense (b) $75 Electricity swaps and options $4 (c) Competitive business operating revenues $— (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items. The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. Fair Values The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize in a current market exchange. Gains or losses realized on financial instruments other than those instruments held by the Entergy Wholesale Commodities business are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments. Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value. Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs. The three levels of the fair value hierarchy are: • Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas hedge contracts. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase. • Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following: – quoted prices for similar assets or liabilities in active markets; – quoted prices for identical assets or liabilities in inactive markets; – inputs other than quoted prices that are observable for the asset or liability; or – inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 consists primarily of individually-owned debt instruments. • Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights and derivative power contracts used as cash flow hedges of power sales at merchant power plants. The values for power contract assets or liabilities are based on both observable inputs including public market prices and interest rates, and unobservable inputs such as implied volatilities, unit contingent discounts, expected basis differences, and credit adjusted counterparty interest rates. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Business Unit Risk Control group and the Accounting Policy and Entergy Wholesale Commodities Accounting group. The primary functions of the Business Unit Risk Control group include: gathering, validating and reporting market data, providing market risk analyses and valuations in support of Entergy Wholesale Commodities’ commercial transactions, developing and administering protocols for the management of market risks, and implementing and maintaining controls around changes to market data in the energy trading and risk management system. The Business Unit Risk Control group is also responsible for managing the energy trading and risk management system, forecasting revenues, forward positions and analysis. The Accounting Policy and Entergy Wholesale Commodities Accounting group performs functions related to market and counterparty settlements, revenue reporting and analysis and financial accounting. The Business Unit Risk Control group reports to the Vice President and Treasurer while the Accounting Policy and Entergy Wholesale Commodities Accounting group reports to the Chief Accounting Officer. The amounts reflected as the fair value of electricity swaps are based on the estimated amount that the contracts are in-the-money at the balance sheet date (treated as an asset) or out-of-the-money at the balance sheet date (treated as a liability) and would equal the estimated amount receivable to or payable by Entergy if the contracts were settled at that date. These derivative contracts include cash flow hedges that swap fixed for floating cash flows for sales of the output from the Entergy Wholesale Commodities business. The fair values are based on the mark-to-market comparison between the fixed contract prices and the floating prices determined each period from quoted forward power market prices. The differences between the fixed price in the swap contract and these market-related prices multiplied by the volume specified in the contract and discounted at the counterparties’ credit adjusted risk free rate are recorded as derivative contract assets or liabilities. For contracts that have unit contingent terms, a further discount is applied based on the historical relationship between contract and market prices for similar contract terms. The amounts reflected as the fair values of electricity options are valued based on a Black Scholes model, and are c |
Decommissioning Trust Funds
Decommissioning Trust Funds | 6 Months Ended |
Jun. 30, 2018 | |
Decommissioning Trust Funds | DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) Entergy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The NRC requires Entergy subsidiaries to maintain trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Pilgrim, Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, and Palisades. The funds are invested primarily in equity securities, fixed-rate debt securities, and cash and cash equivalents. Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this ASU using a modified retrospective method, and Entergy recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. Going forward, unrealized gains and losses on investments in equity securities held by the nuclear decommissioning trust funds will be recorded in earnings as they occur rather than in other comprehensive income. In accordance with the regulatory treatment of the decommissioning trust funds of the Registrant Subsidiaries, an offsetting amount of unrealized gains/(losses) will continue to be recorded in other regulatory liabilities/assets. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the excess trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for Pilgrim, Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, and Palisades do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $100 million and $33 million , respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $2,620 $20 $53 2017 Equity Securities $4,662 $2,131 $1 Debt Securities 2,550 44 16 Total $7,212 $2,175 $17 The unrealized gains/(losses) above are reported before deferred taxes of $472 million as of December 31, 2017 for equity securities, and ($5) million as of June 30, 2018 and $7 million as of December 31, 2017 for debt securities. The amortized cost of debt securities was $2,653 million as of June 30, 2018 and $2,539 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 3.31% , an average duration of approximately 6.77 years, and an average maturity of approximately 10.06 years. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $1,624 $40 More than 12 months 229 13 Total $1,853 $53 The fair value and gross unrealized losses of available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $8 $1 $1,099 $7 More than 12 months — — 265 9 Total $8 $1 $1,364 $16 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $131 $74 1 year - 5 years 963 902 5 years - 10 years 693 812 10 years - 15 years 148 147 15 years - 20 years 105 100 20 years+ 580 515 Total $2,620 $2,550 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $710 million and $949 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $1 million and $61 million , respectively, and gross losses of $15 million and $2 million , respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $1,801 million and $1,463 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $2 million and $70 million , respectively, and gross losses of $22 million and $7 million , respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of June 30, 2018 are $491 million for Indian Point 1, $621 million for Indian Point 2, $801 million for Indian Point 3, $460 million for Palisades, $1,055 million for Pilgrim, and $585 million for Vermont Yankee. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2017 are $491 million for Indian Point 1, $621 million for Indian Point 2, $798 million for Indian Point 3, $458 million for Palisades, $1,068 million for Pilgrim, and $613 million for Vermont Yankee. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $341.7 $0.4 $9.9 2017 Equity Securities $596.7 $354.9 $— Debt Securities 348.2 2.1 3.0 Total $944.9 $357.0 $3.0 The amortized cost of debt securities was $351.2 million as of June 30, 2018 and $349.1 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 2.64% , an average duration of approximately 4.72 years, and an average maturity of approximately 6.38 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $16.8 million and $8.9 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $266.6 $7.9 More than 12 months 34.4 2.0 Total $301.0 $9.9 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $168.0 $1.2 More than 12 months — — 41.4 1.8 Total $— $— $209.4 $3.0 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $13.0 1 year - 5 years 161.6 123.4 5 years - 10 years 115.4 180.6 10 years - 15 years 3.4 4.8 15 years - 20 years 5.9 3.4 20 years+ 25.9 23.0 Total $341.7 $348.2 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $86.5 million and $131.3 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.01 million and $11.2 million , respectively, and gross losses of $2.3 million and $0.1 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $121.4 million and $167.3 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.1 million and $11.7 million , respectively, and gross losses of $2.4 million and $0.2 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $513.8 $4.7 $10.3 2017 Equity Securities $818.3 $461.2 $— Debt Securities 493.8 10.9 3.6 Total $1,312.1 $472.1 $3.6 The amortized cost of debt securities was $519.3 million as of June 30, 2018 and $490 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 3.79% , an average duration of approximately 5.86 years, and an average maturity of approximately 11.64 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $22.2 million and $11.5 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $287.6 $6.3 More than 12 months 75.5 4.0 Total $363.1 $10.3 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $135.3 $1.1 More than 12 months — — 84.4 2.5 Total $— $— $219.7 $3.6 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $23.2 1 year - 5 years 140.5 122.8 5 years - 10 years 101.7 109.3 10 years - 15 years 53.7 52.7 15 years - 20 years 45.0 50.7 20 years+ 143.4 135.1 Total $513.8 $493.8 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $43.9 million and $85 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.01 million and $5 million , respectively, and gross losses of $0.4 million and 0.1 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $169.4 million and $125.6 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.5 million and $5 million , respectively, and gross losses of $1.2 million and $0.3 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $324.2 $1.6 $5.7 2017 Equity Securities $575.2 $308.6 $— Debt Securities 330.5 4.2 1.2 Total $905.7 $312.8 $1.2 The amortized cost of debt securities was $328.3 million as of June 30, 2018 and $327.5 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 2.93% , an average duration of approximately 6.22 years, and an average maturity of approximately 9.12 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $16.3 million and $8.5 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $187.0 $5.1 More than 12 months 9.2 0.6 Total $196.2 $5.7 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $196.9 $1.0 More than 12 months — — 10.4 0.2 Total $— $— $207.3 $1.2 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $9.7 $4.1 1 year - 5 years 169.2 173.0 5 years - 10 years 71.6 78.5 10 years - 15 years 2.7 1.0 15 years - 20 years 11.3 6.9 20 years+ 59.7 67.0 Total $324.2 $330.5 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $145.2 million and $177.7 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.2 million and $0.4 million , respectively, and gross losses of $3.9 million and $0.6 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $199.4 million and $253.5 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.3 million and $0.5 million , respectively, and gross losses of $4.5 million and $1.3 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Other-than-temporary impairments and unrealized gains and losses Entergy evaluates the available-for-sale debt securities in the Entergy Wholesale Commodities’ nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment has occurred. The assessment of whether an investment in a debt security has suffered an other-than-temporary impairment is based on whether Entergy has the intent to sell or more likely than not will be required to sell the debt security before recovery of its amortized costs. Further, if Entergy does not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment is considered to have occurred and it is measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the three and six months ended June 30, 2018 and 2017 . Entergy’s trusts are managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. |
Entergy Arkansas [Member] | |
Decommissioning Trust Funds | DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) Entergy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The NRC requires Entergy subsidiaries to maintain trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Pilgrim, Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, and Palisades. The funds are invested primarily in equity securities, fixed-rate debt securities, and cash and cash equivalents. Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this ASU using a modified retrospective method, and Entergy recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. Going forward, unrealized gains and losses on investments in equity securities held by the nuclear decommissioning trust funds will be recorded in earnings as they occur rather than in other comprehensive income. In accordance with the regulatory treatment of the decommissioning trust funds of the Registrant Subsidiaries, an offsetting amount of unrealized gains/(losses) will continue to be recorded in other regulatory liabilities/assets. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the excess trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for Pilgrim, Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, and Palisades do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $100 million and $33 million , respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $2,620 $20 $53 2017 Equity Securities $4,662 $2,131 $1 Debt Securities 2,550 44 16 Total $7,212 $2,175 $17 The unrealized gains/(losses) above are reported before deferred taxes of $472 million as of December 31, 2017 for equity securities, and ($5) million as of June 30, 2018 and $7 million as of December 31, 2017 for debt securities. The amortized cost of debt securities was $2,653 million as of June 30, 2018 and $2,539 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 3.31% , an average duration of approximately 6.77 years, and an average maturity of approximately 10.06 years. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $1,624 $40 More than 12 months 229 13 Total $1,853 $53 The fair value and gross unrealized losses of available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $8 $1 $1,099 $7 More than 12 months — — 265 9 Total $8 $1 $1,364 $16 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $131 $74 1 year - 5 years 963 902 5 years - 10 years 693 812 10 years - 15 years 148 147 15 years - 20 years 105 100 20 years+ 580 515 Total $2,620 $2,550 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $710 million and $949 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $1 million and $61 million , respectively, and gross losses of $15 million and $2 million , respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $1,801 million and $1,463 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $2 million and $70 million , respectively, and gross losses of $22 million and $7 million , respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of June 30, 2018 are $491 million for Indian Point 1, $621 million for Indian Point 2, $801 million for Indian Point 3, $460 million for Palisades, $1,055 million for Pilgrim, and $585 million for Vermont Yankee. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2017 are $491 million for Indian Point 1, $621 million for Indian Point 2, $798 million for Indian Point 3, $458 million for Palisades, $1,068 million for Pilgrim, and $613 million for Vermont Yankee. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $341.7 $0.4 $9.9 2017 Equity Securities $596.7 $354.9 $— Debt Securities 348.2 2.1 3.0 Total $944.9 $357.0 $3.0 The amortized cost of debt securities was $351.2 million as of June 30, 2018 and $349.1 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 2.64% , an average duration of approximately 4.72 years, and an average maturity of approximately 6.38 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $16.8 million and $8.9 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $266.6 $7.9 More than 12 months 34.4 2.0 Total $301.0 $9.9 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $168.0 $1.2 More than 12 months — — 41.4 1.8 Total $— $— $209.4 $3.0 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $13.0 1 year - 5 years 161.6 123.4 5 years - 10 years 115.4 180.6 10 years - 15 years 3.4 4.8 15 years - 20 years 5.9 3.4 20 years+ 25.9 23.0 Total $341.7 $348.2 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $86.5 million and $131.3 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.01 million and $11.2 million , respectively, and gross losses of $2.3 million and $0.1 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $121.4 million and $167.3 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.1 million and $11.7 million , respectively, and gross losses of $2.4 million and $0.2 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $513.8 $4.7 $10.3 2017 Equity Securities $818.3 $461.2 $— Debt Securities 493.8 10.9 3.6 Total $1,312.1 $472.1 $3.6 The amortized cost of debt securities was $519.3 million as of June 30, 2018 and $490 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 3.79% , an average duration of approximately 5.86 years, and an average maturity of approximately 11.64 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $22.2 million and $11.5 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $287.6 $6.3 More than 12 months 75.5 4.0 Total $363.1 $10.3 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $135.3 $1.1 More than 12 months — — 84.4 2.5 Total $— $— $219.7 $3.6 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $23.2 1 year - 5 years 140.5 122.8 5 years - 10 years 101.7 109.3 10 years - 15 years 53.7 52.7 15 years - 20 years 45.0 50.7 20 years+ 143.4 135.1 Total $513.8 $493.8 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $43.9 million and $85 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.01 million and $5 million , respectively, and gross losses of $0.4 million and 0.1 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $169.4 million and $125.6 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.5 million and $5 million , respectively, and gross losses of $1.2 million and $0.3 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $324.2 $1.6 $5.7 2017 Equity Securities $575.2 $308.6 $— Debt Securities 330.5 4.2 1.2 Total $905.7 $312.8 $1.2 The amortized cost of debt securities was $328.3 million as of June 30, 2018 and $327.5 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 2.93% , an average duration of approximately 6.22 years, and an average maturity of approximately 9.12 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $16.3 million and $8.5 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $187.0 $5.1 More than 12 months 9.2 0.6 Total $196.2 $5.7 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $196.9 $1.0 More than 12 months — — 10.4 0.2 Total $— $— $207.3 $1.2 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $9.7 $4.1 1 year - 5 years 169.2 173.0 5 years - 10 years 71.6 78.5 10 years - 15 years 2.7 1.0 15 years - 20 years 11.3 6.9 20 years+ 59.7 67.0 Total $324.2 $330.5 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $145.2 million and $177.7 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.2 million and $0.4 million , respectively, and gross losses of $3.9 million and $0.6 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $199.4 million and $253.5 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.3 million and $0.5 million , respectively, and gross losses of $4.5 million and $1.3 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Other-than-temporary impairments and unrealized gains and losses Entergy evaluates the available-for-sale debt securities in the Entergy Wholesale Commodities’ nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment has occurred. The assessment of whether an investment in a debt security has suffered an other-than-temporary impairment is based on whether Entergy has the intent to sell or more likely than not will be required to sell the debt security before recovery of its amortized costs. Further, if Entergy does not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment is considered to have occurred and it is measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the three and six months ended June 30, 2018 and 2017 . Entergy’s trusts are managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. |
Entergy Louisiana [Member] | |
Decommissioning Trust Funds | DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) Entergy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The NRC requires Entergy subsidiaries to maintain trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Pilgrim, Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, and Palisades. The funds are invested primarily in equity securities, fixed-rate debt securities, and cash and cash equivalents. Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this ASU using a modified retrospective method, and Entergy recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. Going forward, unrealized gains and losses on investments in equity securities held by the nuclear decommissioning trust funds will be recorded in earnings as they occur rather than in other comprehensive income. In accordance with the regulatory treatment of the decommissioning trust funds of the Registrant Subsidiaries, an offsetting amount of unrealized gains/(losses) will continue to be recorded in other regulatory liabilities/assets. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the excess trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for Pilgrim, Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, and Palisades do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $100 million and $33 million , respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $2,620 $20 $53 2017 Equity Securities $4,662 $2,131 $1 Debt Securities 2,550 44 16 Total $7,212 $2,175 $17 The unrealized gains/(losses) above are reported before deferred taxes of $472 million as of December 31, 2017 for equity securities, and ($5) million as of June 30, 2018 and $7 million as of December 31, 2017 for debt securities. The amortized cost of debt securities was $2,653 million as of June 30, 2018 and $2,539 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 3.31% , an average duration of approximately 6.77 years, and an average maturity of approximately 10.06 years. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $1,624 $40 More than 12 months 229 13 Total $1,853 $53 The fair value and gross unrealized losses of available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $8 $1 $1,099 $7 More than 12 months — — 265 9 Total $8 $1 $1,364 $16 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $131 $74 1 year - 5 years 963 902 5 years - 10 years 693 812 10 years - 15 years 148 147 15 years - 20 years 105 100 20 years+ 580 515 Total $2,620 $2,550 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $710 million and $949 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $1 million and $61 million , respectively, and gross losses of $15 million and $2 million , respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $1,801 million and $1,463 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $2 million and $70 million , respectively, and gross losses of $22 million and $7 million , respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of June 30, 2018 are $491 million for Indian Point 1, $621 million for Indian Point 2, $801 million for Indian Point 3, $460 million for Palisades, $1,055 million for Pilgrim, and $585 million for Vermont Yankee. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2017 are $491 million for Indian Point 1, $621 million for Indian Point 2, $798 million for Indian Point 3, $458 million for Palisades, $1,068 million for Pilgrim, and $613 million for Vermont Yankee. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $341.7 $0.4 $9.9 2017 Equity Securities $596.7 $354.9 $— Debt Securities 348.2 2.1 3.0 Total $944.9 $357.0 $3.0 The amortized cost of debt securities was $351.2 million as of June 30, 2018 and $349.1 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 2.64% , an average duration of approximately 4.72 years, and an average maturity of approximately 6.38 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $16.8 million and $8.9 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $266.6 $7.9 More than 12 months 34.4 2.0 Total $301.0 $9.9 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $168.0 $1.2 More than 12 months — — 41.4 1.8 Total $— $— $209.4 $3.0 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $13.0 1 year - 5 years 161.6 123.4 5 years - 10 years 115.4 180.6 10 years - 15 years 3.4 4.8 15 years - 20 years 5.9 3.4 20 years+ 25.9 23.0 Total $341.7 $348.2 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $86.5 million and $131.3 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.01 million and $11.2 million , respectively, and gross losses of $2.3 million and $0.1 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $121.4 million and $167.3 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.1 million and $11.7 million , respectively, and gross losses of $2.4 million and $0.2 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $513.8 $4.7 $10.3 2017 Equity Securities $818.3 $461.2 $— Debt Securities 493.8 10.9 3.6 Total $1,312.1 $472.1 $3.6 The amortized cost of debt securities was $519.3 million as of June 30, 2018 and $490 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 3.79% , an average duration of approximately 5.86 years, and an average maturity of approximately 11.64 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $22.2 million and $11.5 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $287.6 $6.3 More than 12 months 75.5 4.0 Total $363.1 $10.3 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $135.3 $1.1 More than 12 months — — 84.4 2.5 Total $— $— $219.7 $3.6 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $23.2 1 year - 5 years 140.5 122.8 5 years - 10 years 101.7 109.3 10 years - 15 years 53.7 52.7 15 years - 20 years 45.0 50.7 20 years+ 143.4 135.1 Total $513.8 $493.8 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $43.9 million and $85 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.01 million and $5 million , respectively, and gross losses of $0.4 million and 0.1 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $169.4 million and $125.6 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.5 million and $5 million , respectively, and gross losses of $1.2 million and $0.3 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $324.2 $1.6 $5.7 2017 Equity Securities $575.2 $308.6 $— Debt Securities 330.5 4.2 1.2 Total $905.7 $312.8 $1.2 The amortized cost of debt securities was $328.3 million as of June 30, 2018 and $327.5 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 2.93% , an average duration of approximately 6.22 years, and an average maturity of approximately 9.12 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $16.3 million and $8.5 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $187.0 $5.1 More than 12 months 9.2 0.6 Total $196.2 $5.7 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $196.9 $1.0 More than 12 months — — 10.4 0.2 Total $— $— $207.3 $1.2 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $9.7 $4.1 1 year - 5 years 169.2 173.0 5 years - 10 years 71.6 78.5 10 years - 15 years 2.7 1.0 15 years - 20 years 11.3 6.9 20 years+ 59.7 67.0 Total $324.2 $330.5 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $145.2 million and $177.7 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.2 million and $0.4 million , respectively, and gross losses of $3.9 million and $0.6 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $199.4 million and $253.5 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.3 million and $0.5 million , respectively, and gross losses of $4.5 million and $1.3 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Other-than-temporary impairments and unrealized gains and losses Entergy evaluates the available-for-sale debt securities in the Entergy Wholesale Commodities’ nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment has occurred. The assessment of whether an investment in a debt security has suffered an other-than-temporary impairment is based on whether Entergy has the intent to sell or more likely than not will be required to sell the debt security before recovery of its amortized costs. Further, if Entergy does not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment is considered to have occurred and it is measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the three and six months ended June 30, 2018 and 2017 . Entergy’s trusts are managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. |
System Energy [Member] | |
Decommissioning Trust Funds | DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy) Entergy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The NRC requires Entergy subsidiaries to maintain trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, Grand Gulf, Pilgrim, Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, and Palisades. The funds are invested primarily in equity securities, fixed-rate debt securities, and cash and cash equivalents. Entergy implemented ASU No. 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” effective January 1, 2018. The ASU requires investments in equity securities, excluding those accounted for under the equity method or resulting in consolidation of the investee, to be measured at fair value with changes recognized in net income. Entergy implemented this ASU using a modified retrospective method, and Entergy recorded an adjustment increasing retained earnings and increasing accumulated other comprehensive loss by $633 million as of January 1, 2018 for the cumulative effect of the unrealized gains and losses on investments in equity securities held by the decommissioning trust funds that do not meet the criteria for regulatory accounting treatment. Going forward, unrealized gains and losses on investments in equity securities held by the nuclear decommissioning trust funds will be recorded in earnings as they occur rather than in other comprehensive income. In accordance with the regulatory treatment of the decommissioning trust funds of the Registrant Subsidiaries, an offsetting amount of unrealized gains/(losses) will continue to be recorded in other regulatory liabilities/assets. Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the excess trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for Pilgrim, Indian Point 1, Indian Point 2, Indian Point 3, Vermont Yankee, and Palisades do not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds are recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $100 million and $33 million , respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $2,620 $20 $53 2017 Equity Securities $4,662 $2,131 $1 Debt Securities 2,550 44 16 Total $7,212 $2,175 $17 The unrealized gains/(losses) above are reported before deferred taxes of $472 million as of December 31, 2017 for equity securities, and ($5) million as of June 30, 2018 and $7 million as of December 31, 2017 for debt securities. The amortized cost of debt securities was $2,653 million as of June 30, 2018 and $2,539 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 3.31% , an average duration of approximately 6.77 years, and an average maturity of approximately 10.06 years. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $1,624 $40 More than 12 months 229 13 Total $1,853 $53 The fair value and gross unrealized losses of available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $8 $1 $1,099 $7 More than 12 months — — 265 9 Total $8 $1 $1,364 $16 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $131 $74 1 year - 5 years 963 902 5 years - 10 years 693 812 10 years - 15 years 148 147 15 years - 20 years 105 100 20 years+ 580 515 Total $2,620 $2,550 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $710 million and $949 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $1 million and $61 million , respectively, and gross losses of $15 million and $2 million , respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $1,801 million and $1,463 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $2 million and $70 million , respectively, and gross losses of $22 million and $7 million , respectively, related to available-for-sale securities were reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of June 30, 2018 are $491 million for Indian Point 1, $621 million for Indian Point 2, $801 million for Indian Point 3, $460 million for Palisades, $1,055 million for Pilgrim, and $585 million for Vermont Yankee. The fair values of the decommissioning trust funds related to the Entergy Wholesale Commodities nuclear plants as of December 31, 2017 are $491 million for Indian Point 1, $621 million for Indian Point 2, $798 million for Indian Point 3, $458 million for Palisades, $1,068 million for Pilgrim, and $613 million for Vermont Yankee. The fair values of the decommissioning trust funds for the Registrant Subsidiaries’ nuclear plants are detailed below. Entergy Arkansas Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $341.7 $0.4 $9.9 2017 Equity Securities $596.7 $354.9 $— Debt Securities 348.2 2.1 3.0 Total $944.9 $357.0 $3.0 The amortized cost of debt securities was $351.2 million as of June 30, 2018 and $349.1 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 2.64% , an average duration of approximately 4.72 years, and an average maturity of approximately 6.38 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $16.8 million and $8.9 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $266.6 $7.9 More than 12 months 34.4 2.0 Total $301.0 $9.9 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $168.0 $1.2 More than 12 months — — 41.4 1.8 Total $— $— $209.4 $3.0 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $13.0 1 year - 5 years 161.6 123.4 5 years - 10 years 115.4 180.6 10 years - 15 years 3.4 4.8 15 years - 20 years 5.9 3.4 20 years+ 25.9 23.0 Total $341.7 $348.2 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $86.5 million and $131.3 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.01 million and $11.2 million , respectively, and gross losses of $2.3 million and $0.1 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $121.4 million and $167.3 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.1 million and $11.7 million , respectively, and gross losses of $2.4 million and $0.2 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Entergy Louisiana Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $513.8 $4.7 $10.3 2017 Equity Securities $818.3 $461.2 $— Debt Securities 493.8 10.9 3.6 Total $1,312.1 $472.1 $3.6 The amortized cost of debt securities was $519.3 million as of June 30, 2018 and $490 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 3.79% , an average duration of approximately 5.86 years, and an average maturity of approximately 11.64 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $22.2 million and $11.5 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $287.6 $6.3 More than 12 months 75.5 4.0 Total $363.1 $10.3 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $135.3 $1.1 More than 12 months — — 84.4 2.5 Total $— $— $219.7 $3.6 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $23.2 1 year - 5 years 140.5 122.8 5 years - 10 years 101.7 109.3 10 years - 15 years 53.7 52.7 15 years - 20 years 45.0 50.7 20 years+ 143.4 135.1 Total $513.8 $493.8 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $43.9 million and $85 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.01 million and $5 million , respectively, and gross losses of $0.4 million and 0.1 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $169.4 million and $125.6 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.5 million and $5 million , respectively, and gross losses of $1.2 million and $0.3 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. System Energy System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $324.2 $1.6 $5.7 2017 Equity Securities $575.2 $308.6 $— Debt Securities 330.5 4.2 1.2 Total $905.7 $312.8 $1.2 The amortized cost of debt securities was $328.3 million as of June 30, 2018 and $327.5 million as of December 31, 2017 . As of June 30, 2018 , the debt securities have an average coupon rate of approximately 2.93% , an average duration of approximately 6.22 years, and an average maturity of approximately 9.12 years. The unrealized gains/(losses) recognized during the three and six months ended June 30, 2018 on equity securities still held as of June 30, 2018 were $16.3 million and $8.5 million , respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index. The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $187.0 $5.1 More than 12 months 9.2 0.6 Total $196.2 $5.7 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $196.9 $1.0 More than 12 months — — 10.4 0.2 Total $— $— $207.3 $1.2 The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $9.7 $4.1 1 year - 5 years 169.2 173.0 5 years - 10 years 71.6 78.5 10 years - 15 years 2.7 1.0 15 years - 20 years 11.3 6.9 20 years+ 59.7 67.0 Total $324.2 $330.5 During the three months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $145.2 million and $177.7 million , respectively. During the three months ended June 30, 2018 and 2017 , gross gains of $0.2 million and $0.4 million , respectively, and gross losses of $3.9 million and $0.6 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2018 and 2017 , proceeds from the dispositions of securities amounted to $199.4 million and $253.5 million , respectively. During the six months ended June 30, 2018 and 2017 , gross gains of $0.3 million and $0.5 million , respectively, and gross losses of $4.5 million and $1.3 million , respectively, related to available-for-sale securities were reclassified out of other regulatory liabilities/assets into earnings. Other-than-temporary impairments and unrealized gains and losses Entergy evaluates the available-for-sale debt securities in the Entergy Wholesale Commodities’ nuclear decommissioning trust funds with unrealized losses at the end of each period to determine whether an other-than-temporary impairment has occurred. The assessment of whether an investment in a debt security has suffered an other-than-temporary impairment is based on whether Entergy has the intent to sell or more likely than not will be required to sell the debt security before recovery of its amortized costs. Further, if Entergy does not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment is considered to have occurred and it is measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities for the three and six months ended June 30, 2018 and 2017 . Entergy’s trusts are managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes | INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion. 2012-2013 IRS Audit The IRS has completed its examination of the 2012 and 2013 tax years and issued its 2012-2013 Revenue Agent Report (RAR) in June 2018. Entergy has agreed to all proposed adjustments contained in the RAR. Entergy and the Registrant Subsidiaries recorded the effects of these adjustments in June 2018. As a result of the issuance of the RAR, Entergy Louisiana was able to recognize previously unrecognized tax benefits of $52 million related to the Hurricane Katrina and Hurricane Rita contingent sharing obligation associated with the Louisiana Act 55 financing. The settlement of the above-described item, along with other minor recorded adjustments, decreased Entergy Louisiana’s balance of unrecognized tax benefits from $926 million as of December 31, 2017 to $856 million as of June 30, 2018, net of carryovers for losses and credits. Tax Cuts and Jobs Act As discussed in the Form 10-K, the Tax Cuts and Jobs Act limits the deduction for net business interest expense in certain circumstances. The limitation does not apply to interest expense allocable to the Utility. In Notice 2018-28 released on April 2, 2018, the IRS announced that it intends to issue proposed regulations that will provide guidance to assist taxpayers in complying with the new interest provisions under the Tax Cuts and Jobs Act. The notice provides general and limited information of the IRS’s interpretation regarding methodologies that could be used for the allocation of the interest expense limitation. As a result of the new provision contained in the Tax Cuts and Jobs Act, Entergy recorded limitations in 2018 which did not have a material effect on financial position, results of operations, or cash flows. For a discussion of proceedings commenced or other responses by Entergy’s regulators to the Tax Cuts and Jobs Act, see Note 2 to the financial statements herein and in the Form 10-K. During the second quarter 2018, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and System Energy began returning unprotected excess accumulated deferred income taxes, associated with the effects of the Tax Cuts and Jobs Act, to their customers through rate riders and other means approved by each operating company’s respective regulatory commission. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. In the second quarter 2018 the return of unprotected excess accumulated deferred income taxes reduced the Registrant Subsidiaries’ regulatory liability for income taxes as follows: Entergy Arkansas, $108 million ; Entergy Louisiana, $31 million ; Entergy Mississippi, $129 million ; and System Entergy, $11 million . |
Entergy Arkansas [Member] | |
Income Taxes | INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion. 2012-2013 IRS Audit The IRS has completed its examination of the 2012 and 2013 tax years and issued its 2012-2013 Revenue Agent Report (RAR) in June 2018. Entergy has agreed to all proposed adjustments contained in the RAR. Entergy and the Registrant Subsidiaries recorded the effects of these adjustments in June 2018. As a result of the issuance of the RAR, Entergy Louisiana was able to recognize previously unrecognized tax benefits of $52 million related to the Hurricane Katrina and Hurricane Rita contingent sharing obligation associated with the Louisiana Act 55 financing. The settlement of the above-described item, along with other minor recorded adjustments, decreased Entergy Louisiana’s balance of unrecognized tax benefits from $926 million as of December 31, 2017 to $856 million as of June 30, 2018, net of carryovers for losses and credits. Tax Cuts and Jobs Act As discussed in the Form 10-K, the Tax Cuts and Jobs Act limits the deduction for net business interest expense in certain circumstances. The limitation does not apply to interest expense allocable to the Utility. In Notice 2018-28 released on April 2, 2018, the IRS announced that it intends to issue proposed regulations that will provide guidance to assist taxpayers in complying with the new interest provisions under the Tax Cuts and Jobs Act. The notice provides general and limited information of the IRS’s interpretation regarding methodologies that could be used for the allocation of the interest expense limitation. As a result of the new provision contained in the Tax Cuts and Jobs Act, Entergy recorded limitations in 2018 which did not have a material effect on financial position, results of operations, or cash flows. For a discussion of proceedings commenced or other responses by Entergy’s regulators to the Tax Cuts and Jobs Act, see Note 2 to the financial statements herein and in the Form 10-K. During the second quarter 2018, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and System Energy began returning unprotected excess accumulated deferred income taxes, associated with the effects of the Tax Cuts and Jobs Act, to their customers through rate riders and other means approved by each operating company’s respective regulatory commission. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. In the second quarter 2018 the return of unprotected excess accumulated deferred income taxes reduced the Registrant Subsidiaries’ regulatory liability for income taxes as follows: Entergy Arkansas, $108 million ; Entergy Louisiana, $31 million ; Entergy Mississippi, $129 million ; and System Entergy, $11 million . |
Entergy Louisiana [Member] | |
Income Taxes | INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion. 2012-2013 IRS Audit The IRS has completed its examination of the 2012 and 2013 tax years and issued its 2012-2013 Revenue Agent Report (RAR) in June 2018. Entergy has agreed to all proposed adjustments contained in the RAR. Entergy and the Registrant Subsidiaries recorded the effects of these adjustments in June 2018. As a result of the issuance of the RAR, Entergy Louisiana was able to recognize previously unrecognized tax benefits of $52 million related to the Hurricane Katrina and Hurricane Rita contingent sharing obligation associated with the Louisiana Act 55 financing. The settlement of the above-described item, along with other minor recorded adjustments, decreased Entergy Louisiana’s balance of unrecognized tax benefits from $926 million as of December 31, 2017 to $856 million as of June 30, 2018, net of carryovers for losses and credits. Tax Cuts and Jobs Act As discussed in the Form 10-K, the Tax Cuts and Jobs Act limits the deduction for net business interest expense in certain circumstances. The limitation does not apply to interest expense allocable to the Utility. In Notice 2018-28 released on April 2, 2018, the IRS announced that it intends to issue proposed regulations that will provide guidance to assist taxpayers in complying with the new interest provisions under the Tax Cuts and Jobs Act. The notice provides general and limited information of the IRS’s interpretation regarding methodologies that could be used for the allocation of the interest expense limitation. As a result of the new provision contained in the Tax Cuts and Jobs Act, Entergy recorded limitations in 2018 which did not have a material effect on financial position, results of operations, or cash flows. For a discussion of proceedings commenced or other responses by Entergy’s regulators to the Tax Cuts and Jobs Act, see Note 2 to the financial statements herein and in the Form 10-K. During the second quarter 2018, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and System Energy began returning unprotected excess accumulated deferred income taxes, associated with the effects of the Tax Cuts and Jobs Act, to their customers through rate riders and other means approved by each operating company’s respective regulatory commission. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. In the second quarter 2018 the return of unprotected excess accumulated deferred income taxes reduced the Registrant Subsidiaries’ regulatory liability for income taxes as follows: Entergy Arkansas, $108 million ; Entergy Louisiana, $31 million ; Entergy Mississippi, $129 million ; and System Entergy, $11 million . |
Entergy Mississippi [Member] | |
Income Taxes | INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion. 2012-2013 IRS Audit The IRS has completed its examination of the 2012 and 2013 tax years and issued its 2012-2013 Revenue Agent Report (RAR) in June 2018. Entergy has agreed to all proposed adjustments contained in the RAR. Entergy and the Registrant Subsidiaries recorded the effects of these adjustments in June 2018. As a result of the issuance of the RAR, Entergy Louisiana was able to recognize previously unrecognized tax benefits of $52 million related to the Hurricane Katrina and Hurricane Rita contingent sharing obligation associated with the Louisiana Act 55 financing. The settlement of the above-described item, along with other minor recorded adjustments, decreased Entergy Louisiana’s balance of unrecognized tax benefits from $926 million as of December 31, 2017 to $856 million as of June 30, 2018, net of carryovers for losses and credits. Tax Cuts and Jobs Act As discussed in the Form 10-K, the Tax Cuts and Jobs Act limits the deduction for net business interest expense in certain circumstances. The limitation does not apply to interest expense allocable to the Utility. In Notice 2018-28 released on April 2, 2018, the IRS announced that it intends to issue proposed regulations that will provide guidance to assist taxpayers in complying with the new interest provisions under the Tax Cuts and Jobs Act. The notice provides general and limited information of the IRS’s interpretation regarding methodologies that could be used for the allocation of the interest expense limitation. As a result of the new provision contained in the Tax Cuts and Jobs Act, Entergy recorded limitations in 2018 which did not have a material effect on financial position, results of operations, or cash flows. For a discussion of proceedings commenced or other responses by Entergy’s regulators to the Tax Cuts and Jobs Act, see Note 2 to the financial statements herein and in the Form 10-K. During the second quarter 2018, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and System Energy began returning unprotected excess accumulated deferred income taxes, associated with the effects of the Tax Cuts and Jobs Act, to their customers through rate riders and other means approved by each operating company’s respective regulatory commission. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. In the second quarter 2018 the return of unprotected excess accumulated deferred income taxes reduced the Registrant Subsidiaries’ regulatory liability for income taxes as follows: Entergy Arkansas, $108 million ; Entergy Louisiana, $31 million ; Entergy Mississippi, $129 million ; and System Entergy, $11 million . |
Entergy New Orleans [Member] | |
Income Taxes | INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion. 2012-2013 IRS Audit The IRS has completed its examination of the 2012 and 2013 tax years and issued its 2012-2013 Revenue Agent Report (RAR) in June 2018. Entergy has agreed to all proposed adjustments contained in the RAR. Entergy and the Registrant Subsidiaries recorded the effects of these adjustments in June 2018. As a result of the issuance of the RAR, Entergy Louisiana was able to recognize previously unrecognized tax benefits of $52 million related to the Hurricane Katrina and Hurricane Rita contingent sharing obligation associated with the Louisiana Act 55 financing. The settlement of the above-described item, along with other minor recorded adjustments, decreased Entergy Louisiana’s balance of unrecognized tax benefits from $926 million as of December 31, 2017 to $856 million as of June 30, 2018, net of carryovers for losses and credits. Tax Cuts and Jobs Act As discussed in the Form 10-K, the Tax Cuts and Jobs Act limits the deduction for net business interest expense in certain circumstances. The limitation does not apply to interest expense allocable to the Utility. In Notice 2018-28 released on April 2, 2018, the IRS announced that it intends to issue proposed regulations that will provide guidance to assist taxpayers in complying with the new interest provisions under the Tax Cuts and Jobs Act. The notice provides general and limited information of the IRS’s interpretation regarding methodologies that could be used for the allocation of the interest expense limitation. As a result of the new provision contained in the Tax Cuts and Jobs Act, Entergy recorded limitations in 2018 which did not have a material effect on financial position, results of operations, or cash flows. For a discussion of proceedings commenced or other responses by Entergy’s regulators to the Tax Cuts and Jobs Act, see Note 2 to the financial statements herein and in the Form 10-K. During the second quarter 2018, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and System Energy began returning unprotected excess accumulated deferred income taxes, associated with the effects of the Tax Cuts and Jobs Act, to their customers through rate riders and other means approved by each operating company’s respective regulatory commission. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. In the second quarter 2018 the return of unprotected excess accumulated deferred income taxes reduced the Registrant Subsidiaries’ regulatory liability for income taxes as follows: Entergy Arkansas, $108 million ; Entergy Louisiana, $31 million ; Entergy Mississippi, $129 million ; and System Entergy, $11 million . |
Entergy Texas [Member] | |
Income Taxes | INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion. 2012-2013 IRS Audit The IRS has completed its examination of the 2012 and 2013 tax years and issued its 2012-2013 Revenue Agent Report (RAR) in June 2018. Entergy has agreed to all proposed adjustments contained in the RAR. Entergy and the Registrant Subsidiaries recorded the effects of these adjustments in June 2018. As a result of the issuance of the RAR, Entergy Louisiana was able to recognize previously unrecognized tax benefits of $52 million related to the Hurricane Katrina and Hurricane Rita contingent sharing obligation associated with the Louisiana Act 55 financing. The settlement of the above-described item, along with other minor recorded adjustments, decreased Entergy Louisiana’s balance of unrecognized tax benefits from $926 million as of December 31, 2017 to $856 million as of June 30, 2018, net of carryovers for losses and credits. Tax Cuts and Jobs Act As discussed in the Form 10-K, the Tax Cuts and Jobs Act limits the deduction for net business interest expense in certain circumstances. The limitation does not apply to interest expense allocable to the Utility. In Notice 2018-28 released on April 2, 2018, the IRS announced that it intends to issue proposed regulations that will provide guidance to assist taxpayers in complying with the new interest provisions under the Tax Cuts and Jobs Act. The notice provides general and limited information of the IRS’s interpretation regarding methodologies that could be used for the allocation of the interest expense limitation. As a result of the new provision contained in the Tax Cuts and Jobs Act, Entergy recorded limitations in 2018 which did not have a material effect on financial position, results of operations, or cash flows. For a discussion of proceedings commenced or other responses by Entergy’s regulators to the Tax Cuts and Jobs Act, see Note 2 to the financial statements herein and in the Form 10-K. During the second quarter 2018, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and System Energy began returning unprotected excess accumulated deferred income taxes, associated with the effects of the Tax Cuts and Jobs Act, to their customers through rate riders and other means approved by each operating company’s respective regulatory commission. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. In the second quarter 2018 the return of unprotected excess accumulated deferred income taxes reduced the Registrant Subsidiaries’ regulatory liability for income taxes as follows: Entergy Arkansas, $108 million ; Entergy Louisiana, $31 million ; Entergy Mississippi, $129 million ; and System Entergy, $11 million . |
System Energy [Member] | |
Income Taxes | INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See “ Income Tax Audits ” and “ Other Tax Matters ” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion. 2012-2013 IRS Audit The IRS has completed its examination of the 2012 and 2013 tax years and issued its 2012-2013 Revenue Agent Report (RAR) in June 2018. Entergy has agreed to all proposed adjustments contained in the RAR. Entergy and the Registrant Subsidiaries recorded the effects of these adjustments in June 2018. As a result of the issuance of the RAR, Entergy Louisiana was able to recognize previously unrecognized tax benefits of $52 million related to the Hurricane Katrina and Hurricane Rita contingent sharing obligation associated with the Louisiana Act 55 financing. The settlement of the above-described item, along with other minor recorded adjustments, decreased Entergy Louisiana’s balance of unrecognized tax benefits from $926 million as of December 31, 2017 to $856 million as of June 30, 2018, net of carryovers for losses and credits. Tax Cuts and Jobs Act As discussed in the Form 10-K, the Tax Cuts and Jobs Act limits the deduction for net business interest expense in certain circumstances. The limitation does not apply to interest expense allocable to the Utility. In Notice 2018-28 released on April 2, 2018, the IRS announced that it intends to issue proposed regulations that will provide guidance to assist taxpayers in complying with the new interest provisions under the Tax Cuts and Jobs Act. The notice provides general and limited information of the IRS’s interpretation regarding methodologies that could be used for the allocation of the interest expense limitation. As a result of the new provision contained in the Tax Cuts and Jobs Act, Entergy recorded limitations in 2018 which did not have a material effect on financial position, results of operations, or cash flows. For a discussion of proceedings commenced or other responses by Entergy’s regulators to the Tax Cuts and Jobs Act, see Note 2 to the financial statements herein and in the Form 10-K. During the second quarter 2018, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and System Energy began returning unprotected excess accumulated deferred income taxes, associated with the effects of the Tax Cuts and Jobs Act, to their customers through rate riders and other means approved by each operating company’s respective regulatory commission. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This has a significant effect on the effective tax rate for the period as compared to the statutory tax rate. In the second quarter 2018 the return of unprotected excess accumulated deferred income taxes reduced the Registrant Subsidiaries’ regulatory liability for income taxes as follows: Entergy Arkansas, $108 million ; Entergy Louisiana, $31 million ; Entergy Mississippi, $129 million ; and System Entergy, $11 million . |
Property, Plant, And Equipment
Property, Plant, And Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant, And Equipment | PROPERTY, PLANT, AND EQUIPMENT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Construction Expenditures in Accounts Payable Construction expenditures included in accounts payable at June 30, 2018 are $280 million for Entergy, $30.3 million for Entergy Arkansas, $113.5 million for Entergy Louisiana, $15.2 million for Entergy Mississippi, $4.8 million for Entergy New Orleans, $7.1 million for Entergy Texas, and $53 million for System Energy. Construction expenditures included in accounts payable at December 31, 2017 are $368 million for Entergy, $58.8 million for Entergy Arkansas, $160.4 million for Entergy Louisiana, $17.1 million for Entergy Mississippi, $2.5 million for Entergy New Orleans, $32.8 million for Entergy Texas, and $33.9 million for System Energy. |
Entergy Arkansas [Member] | |
Property, Plant, And Equipment | PROPERTY, PLANT, AND EQUIPMENT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Construction Expenditures in Accounts Payable Construction expenditures included in accounts payable at June 30, 2018 are $280 million for Entergy, $30.3 million for Entergy Arkansas, $113.5 million for Entergy Louisiana, $15.2 million for Entergy Mississippi, $4.8 million for Entergy New Orleans, $7.1 million for Entergy Texas, and $53 million for System Energy. Construction expenditures included in accounts payable at December 31, 2017 are $368 million for Entergy, $58.8 million for Entergy Arkansas, $160.4 million for Entergy Louisiana, $17.1 million for Entergy Mississippi, $2.5 million for Entergy New Orleans, $32.8 million for Entergy Texas, and $33.9 million for System Energy. |
Entergy Louisiana [Member] | |
Property, Plant, And Equipment | PROPERTY, PLANT, AND EQUIPMENT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Construction Expenditures in Accounts Payable Construction expenditures included in accounts payable at June 30, 2018 are $280 million for Entergy, $30.3 million for Entergy Arkansas, $113.5 million for Entergy Louisiana, $15.2 million for Entergy Mississippi, $4.8 million for Entergy New Orleans, $7.1 million for Entergy Texas, and $53 million for System Energy. Construction expenditures included in accounts payable at December 31, 2017 are $368 million for Entergy, $58.8 million for Entergy Arkansas, $160.4 million for Entergy Louisiana, $17.1 million for Entergy Mississippi, $2.5 million for Entergy New Orleans, $32.8 million for Entergy Texas, and $33.9 million for System Energy. |
Entergy Mississippi [Member] | |
Property, Plant, And Equipment | PROPERTY, PLANT, AND EQUIPMENT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Construction Expenditures in Accounts Payable Construction expenditures included in accounts payable at June 30, 2018 are $280 million for Entergy, $30.3 million for Entergy Arkansas, $113.5 million for Entergy Louisiana, $15.2 million for Entergy Mississippi, $4.8 million for Entergy New Orleans, $7.1 million for Entergy Texas, and $53 million for System Energy. Construction expenditures included in accounts payable at December 31, 2017 are $368 million for Entergy, $58.8 million for Entergy Arkansas, $160.4 million for Entergy Louisiana, $17.1 million for Entergy Mississippi, $2.5 million for Entergy New Orleans, $32.8 million for Entergy Texas, and $33.9 million for System Energy. |
Entergy New Orleans [Member] | |
Property, Plant, And Equipment | PROPERTY, PLANT, AND EQUIPMENT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Construction Expenditures in Accounts Payable Construction expenditures included in accounts payable at June 30, 2018 are $280 million for Entergy, $30.3 million for Entergy Arkansas, $113.5 million for Entergy Louisiana, $15.2 million for Entergy Mississippi, $4.8 million for Entergy New Orleans, $7.1 million for Entergy Texas, and $53 million for System Energy. Construction expenditures included in accounts payable at December 31, 2017 are $368 million for Entergy, $58.8 million for Entergy Arkansas, $160.4 million for Entergy Louisiana, $17.1 million for Entergy Mississippi, $2.5 million for Entergy New Orleans, $32.8 million for Entergy Texas, and $33.9 million for System Energy. |
Entergy Texas [Member] | |
Property, Plant, And Equipment | PROPERTY, PLANT, AND EQUIPMENT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Construction Expenditures in Accounts Payable Construction expenditures included in accounts payable at June 30, 2018 are $280 million for Entergy, $30.3 million for Entergy Arkansas, $113.5 million for Entergy Louisiana, $15.2 million for Entergy Mississippi, $4.8 million for Entergy New Orleans, $7.1 million for Entergy Texas, and $53 million for System Energy. Construction expenditures included in accounts payable at December 31, 2017 are $368 million for Entergy, $58.8 million for Entergy Arkansas, $160.4 million for Entergy Louisiana, $17.1 million for Entergy Mississippi, $2.5 million for Entergy New Orleans, $32.8 million for Entergy Texas, and $33.9 million for System Energy. |
System Energy [Member] | |
Property, Plant, And Equipment | PROPERTY, PLANT, AND EQUIPMENT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Construction Expenditures in Accounts Payable Construction expenditures included in accounts payable at June 30, 2018 are $280 million for Entergy, $30.3 million for Entergy Arkansas, $113.5 million for Entergy Louisiana, $15.2 million for Entergy Mississippi, $4.8 million for Entergy New Orleans, $7.1 million for Entergy Texas, and $53 million for System Energy. Construction expenditures included in accounts payable at December 31, 2017 are $368 million for Entergy, $58.8 million for Entergy Arkansas, $160.4 million for Entergy Louisiana, $17.1 million for Entergy Mississippi, $2.5 million for Entergy New Orleans, $32.8 million for Entergy Texas, and $33.9 million for System Energy. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2018 | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities. See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities and commercial paper borrowings and long-term debt. System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest representing approximately 11.5% of the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 10 to the financial statements in the Form 10-K. System Energy made payments on its lease, including interest, of $8.6 million in the six months ended June 30, 2018 and $8.6 million in the six months ended June 30, 2017 . |
Entergy Arkansas [Member] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities. See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities and commercial paper borrowings and long-term debt. System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest representing approximately 11.5% of the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 10 to the financial statements in the Form 10-K. System Energy made payments on its lease, including interest, of $8.6 million in the six months ended June 30, 2018 and $8.6 million in the six months ended June 30, 2017 . |
Entergy Louisiana [Member] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities. See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities and commercial paper borrowings and long-term debt. System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest representing approximately 11.5% of the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 10 to the financial statements in the Form 10-K. System Energy made payments on its lease, including interest, of $8.6 million in the six months ended June 30, 2018 and $8.6 million in the six months ended June 30, 2017 . |
Entergy Mississippi [Member] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities. See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities and commercial paper borrowings and long-term debt. System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest representing approximately 11.5% of the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 10 to the financial statements in the Form 10-K. System Energy made payments on its lease, including interest, of $8.6 million in the six months ended June 30, 2018 and $8.6 million in the six months ended June 30, 2017 . |
Entergy New Orleans [Member] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities. See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities and commercial paper borrowings and long-term debt. System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest representing approximately 11.5% of the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 10 to the financial statements in the Form 10-K. System Energy made payments on its lease, including interest, of $8.6 million in the six months ended June 30, 2018 and $8.6 million in the six months ended June 30, 2017 . |
Entergy Texas [Member] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities. See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities and commercial paper borrowings and long-term debt. System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest representing approximately 11.5% of the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 10 to the financial statements in the Form 10-K. System Energy made payments on its lease, including interest, of $8.6 million in the six months ended June 30, 2018 and $8.6 million in the six months ended June 30, 2017 . |
System Energy [Member] | |
Variable Interest Entities | VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities. See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities and commercial paper borrowings and long-term debt. System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest representing approximately 11.5% of the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 10 to the financial statements in the Form 10-K. System Energy made payments on its lease, including interest, of $8.6 million in the six months ended June 30, 2018 and $8.6 million in the six months ended June 30, 2017 . |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition | REVENUE RECOGNITION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Revenue Recognition Entergy implemented ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” effective January 1, 2018. Topic 606 requires entities to “recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU details a five-step model that should be followed to achieve the core principle. This accounting was applied to all contracts using the modified retrospective method, which requires an adjustment to retained earnings for the cumulative effect of adopting the standard as of the effective date. Because the standard did not result in any material change in how Entergy recognizes revenue, however, no adjustment to retained earnings was required. Similarly, there was no effect on revenues recognized under Topic 606 for the three or six months ended June 30, 2018. Revenues from electric service and the sale of natural gas are recognized when services are transferred to the customer in an amount equal to what Entergy has the right to bill the customer because this amount represents the value of services provided to customers. Entergy’s total revenues for the three and six months ended June 30, 2018 were as follows: 2018 Three Months Ended Six Months Ended (In Thousands) Utility: Residential $768,710 $1,660,795 Commercial 581,899 1,177,620 Industrial 624,818 1,222,004 Governmental 56,823 113,301 Total billed retail 2,032,250 4,173,720 Sales for resale (a) 69,212 138,738 Other electric revenues (b) 219,391 246,822 Non-customer revenues (c) 9,372 19,206 Total electric revenues 2,330,225 4,578,486 Natural gas 29,943 86,638 Entergy Wholesale Commodities: Competitive businesses sales (a) 331,562 740,697 Non-customer revenues (c) (22,960 ) (13,171 ) Total competitive businesses 308,602 727,526 Total operating revenues $2,668,770 $5,392,650 The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 (a) Sales for resale and competitive businesses sales include day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments, and includes them as part of customer revenues. (b) Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market and unbilled revenue. (c) Non-customer revenues include the settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees. Electric Revenues Entergy’s primary source of revenue is from retail electric sales sold under tariff rates approved by regulators in its various jurisdictions. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, Mississippi, and Texas. Energy is provided on demand throughout the month, measured by a meter located at the customer’s property. Approved rates vary by customer class due to differing requirements of the customers and market factors involved in fulfilling those requirements. Entergy issues monthly bills to customers at rates approved by regulators for power and related services provided during the previous billing cycle. To the extent that deliveries have occurred but a bill has not been issued, Entergy’s Utility operating companies record an estimate for energy delivered since the latest billings. The Utility operating companies calculate the estimate based upon several factors including billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and market prices of power in the respective jurisdiction. The inputs are revised as needed to approximate actual usage and cost. Each month, estimated unbilled amounts are recorded as unbilled revenue and accounts receivable, and the prior month’s estimate is reversed. Price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the other. This may result in variability of reported revenues from one period to the next as prior estimates are reversed and new estimates recorded. Entergy may record revenue based on rates that are subject to refund. Such revenues are reduced by estimated refund amounts when Entergy believes refunds are probable based on the status of rate proceedings as of the date financial statements are prepared. Because these refunds will be made through a reduction in future rates, and not as a reduction in bills previously issued, they are presented as non-customer revenue in the table above. System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC. Entergy’s Utility operating companies also sell excess power not needed for its own customers, primarily through transactions with MISO, a regional transmission organization that maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. In the MISO market, Entergy offers its generation and bids its load into the market. MISO settles these offers and bids based on locational marginal prices. These represent pricing for energy at a given location based on a market clearing price that takes into account physical limitations on the transmission system, generation, and demand throughout the MISO region. MISO evaluates each market participant’s energy offers and demand bids to economically and reliably dispatch the entire MISO system. Entergy nets purchases and sales within the MISO market and reports in operating revenues when in a net selling position and in operating expenses when in a net purchasing position. Natural Gas Entergy Louisiana and Entergy New Orleans also distribute natural gas to retail customers in and around Baton Rouge, Louisiana, and the City of New Orleans, including Algiers, respectively. Gas transferred to customers is measured by a meter at the customer’s property. Entergy issues monthly invoices to customers at rates approved by regulators for the volume of gas transferred to date. Competitive Businesses Revenues The Entergy Wholesale Commodities segment derives almost all of its revenue from sales of electric power and capacity produced by its operating plants to wholesale customers. The majority of Entergy Wholesale Commodities revenues are from Entergy’s nuclear power plants located in the northern United States. Entergy issues monthly invoices to the counterparties for these electric sales at the respective contracted or ISO market rate of electricity and related services provided during the previous month. Most of the Palisades nuclear plant output is sold under a 15-year PPA with Consumers Energy, executed as part of the acquisition of the plant in 2007 and expiring in 2022. The PPA prices are for a set price per MWh and escalate each year, up to $61.50 /MWh in 2022. Entergy issues monthly invoices to Consumers Energy for electric sales based on the actual output of electricity and related services provided during the previous month at the contract price. Additionally, as the PPA pricing was considered below-market at the time of acquisition, a liability was recorded for the fair value of the below-market PPA, and is being amortized to revenue over the life of the agreement. Practical Expedients and Exceptions Entergy has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less, or for revenue recognized in an amount equal to what Entergy has the right to bill the customer for services performed. Most of Entergy’s contracts, except in a few cases where there are defined minimums or stated terms, are on demand. This results in customer bills that vary each month based on an approved tariff and usage. Entergy imposes monthly or annual minimum requirements on some customers primarily as credit and cost recovery guarantees and not as pricing for unsatisfied performance obligations. These minimums typically expire after the initial term or when specified costs have been recovered. The minimum amounts are part of each month’s bill and recognized as revenue accordingly. Some of the subsidiaries within the Entergy Wholesale Commodities segment have operations and maintenance services contracts that have fixed components and terms longer than one year. The total fixed consideration related to these unsatisfied performance obligations, however, is not material to Entergy revenues. Recovery of Fuel Costs Entergy’s Utility operating companies’ rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of fuel costs until the costs are billed to customers. Where the fuel component of revenues is based on a pre-determined fuel cost (fixed fuel factor), the fuel factor remains in effect until changed as part of a general rate case, fuel reconciliation, or fixed fuel factor filing. System Energy’s operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf. The capital costs are based on System Energy’s common equity funds allocable to its net investment in Grand Gulf, plus System Energy’s effective interest cost for its debt allocable to its investment in Grand Gulf. Taxes Imposed on Revenue-Producing Transactions Governmental authorities assess taxes that are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer, including, but not limited to, sales, use, value added, and some excise taxes. Entergy presents these taxes on a net basis, excluding them from revenues. |
Entergy Arkansas [Member] | |
Revenue Recognition | REVENUE RECOGNITION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Revenue Recognition Entergy implemented ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” effective January 1, 2018. Topic 606 requires entities to “recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU details a five-step model that should be followed to achieve the core principle. This accounting was applied to all contracts using the modified retrospective method, which requires an adjustment to retained earnings for the cumulative effect of adopting the standard as of the effective date. Because the standard did not result in any material change in how Entergy recognizes revenue, however, no adjustment to retained earnings was required. Similarly, there was no effect on revenues recognized under Topic 606 for the three or six months ended June 30, 2018. Revenues from electric service and the sale of natural gas are recognized when services are transferred to the customer in an amount equal to what Entergy has the right to bill the customer because this amount represents the value of services provided to customers. Entergy’s total revenues for the three and six months ended June 30, 2018 were as follows: 2018 Three Months Ended Six Months Ended (In Thousands) Utility: Residential $768,710 $1,660,795 Commercial 581,899 1,177,620 Industrial 624,818 1,222,004 Governmental 56,823 113,301 Total billed retail 2,032,250 4,173,720 Sales for resale (a) 69,212 138,738 Other electric revenues (b) 219,391 246,822 Non-customer revenues (c) 9,372 19,206 Total electric revenues 2,330,225 4,578,486 Natural gas 29,943 86,638 Entergy Wholesale Commodities: Competitive businesses sales (a) 331,562 740,697 Non-customer revenues (c) (22,960 ) (13,171 ) Total competitive businesses 308,602 727,526 Total operating revenues $2,668,770 $5,392,650 The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 (a) Sales for resale and competitive businesses sales include day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments, and includes them as part of customer revenues. (b) Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market and unbilled revenue. (c) Non-customer revenues include the settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees. Electric Revenues Entergy’s primary source of revenue is from retail electric sales sold under tariff rates approved by regulators in its various jurisdictions. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, Mississippi, and Texas. Energy is provided on demand throughout the month, measured by a meter located at the customer’s property. Approved rates vary by customer class due to differing requirements of the customers and market factors involved in fulfilling those requirements. Entergy issues monthly bills to customers at rates approved by regulators for power and related services provided during the previous billing cycle. To the extent that deliveries have occurred but a bill has not been issued, Entergy’s Utility operating companies record an estimate for energy delivered since the latest billings. The Utility operating companies calculate the estimate based upon several factors including billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and market prices of power in the respective jurisdiction. The inputs are revised as needed to approximate actual usage and cost. Each month, estimated unbilled amounts are recorded as unbilled revenue and accounts receivable, and the prior month’s estimate is reversed. Price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the other. This may result in variability of reported revenues from one period to the next as prior estimates are reversed and new estimates recorded. Entergy may record revenue based on rates that are subject to refund. Such revenues are reduced by estimated refund amounts when Entergy believes refunds are probable based on the status of rate proceedings as of the date financial statements are prepared. Because these refunds will be made through a reduction in future rates, and not as a reduction in bills previously issued, they are presented as non-customer revenue in the table above. System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC. Entergy’s Utility operating companies also sell excess power not needed for its own customers, primarily through transactions with MISO, a regional transmission organization that maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. In the MISO market, Entergy offers its generation and bids its load into the market. MISO settles these offers and bids based on locational marginal prices. These represent pricing for energy at a given location based on a market clearing price that takes into account physical limitations on the transmission system, generation, and demand throughout the MISO region. MISO evaluates each market participant’s energy offers and demand bids to economically and reliably dispatch the entire MISO system. Entergy nets purchases and sales within the MISO market and reports in operating revenues when in a net selling position and in operating expenses when in a net purchasing position. Natural Gas Entergy Louisiana and Entergy New Orleans also distribute natural gas to retail customers in and around Baton Rouge, Louisiana, and the City of New Orleans, including Algiers, respectively. Gas transferred to customers is measured by a meter at the customer’s property. Entergy issues monthly invoices to customers at rates approved by regulators for the volume of gas transferred to date. Competitive Businesses Revenues The Entergy Wholesale Commodities segment derives almost all of its revenue from sales of electric power and capacity produced by its operating plants to wholesale customers. The majority of Entergy Wholesale Commodities revenues are from Entergy’s nuclear power plants located in the northern United States. Entergy issues monthly invoices to the counterparties for these electric sales at the respective contracted or ISO market rate of electricity and related services provided during the previous month. Most of the Palisades nuclear plant output is sold under a 15-year PPA with Consumers Energy, executed as part of the acquisition of the plant in 2007 and expiring in 2022. The PPA prices are for a set price per MWh and escalate each year, up to $61.50 /MWh in 2022. Entergy issues monthly invoices to Consumers Energy for electric sales based on the actual output of electricity and related services provided during the previous month at the contract price. Additionally, as the PPA pricing was considered below-market at the time of acquisition, a liability was recorded for the fair value of the below-market PPA, and is being amortized to revenue over the life of the agreement. Practical Expedients and Exceptions Entergy has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less, or for revenue recognized in an amount equal to what Entergy has the right to bill the customer for services performed. Most of Entergy’s contracts, except in a few cases where there are defined minimums or stated terms, are on demand. This results in customer bills that vary each month based on an approved tariff and usage. Entergy imposes monthly or annual minimum requirements on some customers primarily as credit and cost recovery guarantees and not as pricing for unsatisfied performance obligations. These minimums typically expire after the initial term or when specified costs have been recovered. The minimum amounts are part of each month’s bill and recognized as revenue accordingly. Some of the subsidiaries within the Entergy Wholesale Commodities segment have operations and maintenance services contracts that have fixed components and terms longer than one year. The total fixed consideration related to these unsatisfied performance obligations, however, is not material to Entergy revenues. Recovery of Fuel Costs Entergy’s Utility operating companies’ rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of fuel costs until the costs are billed to customers. Where the fuel component of revenues is based on a pre-determined fuel cost (fixed fuel factor), the fuel factor remains in effect until changed as part of a general rate case, fuel reconciliation, or fixed fuel factor filing. System Energy’s operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf. The capital costs are based on System Energy’s common equity funds allocable to its net investment in Grand Gulf, plus System Energy’s effective interest cost for its debt allocable to its investment in Grand Gulf. Taxes Imposed on Revenue-Producing Transactions Governmental authorities assess taxes that are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer, including, but not limited to, sales, use, value added, and some excise taxes. Entergy presents these taxes on a net basis, excluding them from revenues. |
Entergy Louisiana [Member] | |
Revenue Recognition | REVENUE RECOGNITION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Revenue Recognition Entergy implemented ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” effective January 1, 2018. Topic 606 requires entities to “recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU details a five-step model that should be followed to achieve the core principle. This accounting was applied to all contracts using the modified retrospective method, which requires an adjustment to retained earnings for the cumulative effect of adopting the standard as of the effective date. Because the standard did not result in any material change in how Entergy recognizes revenue, however, no adjustment to retained earnings was required. Similarly, there was no effect on revenues recognized under Topic 606 for the three or six months ended June 30, 2018. Revenues from electric service and the sale of natural gas are recognized when services are transferred to the customer in an amount equal to what Entergy has the right to bill the customer because this amount represents the value of services provided to customers. Entergy’s total revenues for the three and six months ended June 30, 2018 were as follows: 2018 Three Months Ended Six Months Ended (In Thousands) Utility: Residential $768,710 $1,660,795 Commercial 581,899 1,177,620 Industrial 624,818 1,222,004 Governmental 56,823 113,301 Total billed retail 2,032,250 4,173,720 Sales for resale (a) 69,212 138,738 Other electric revenues (b) 219,391 246,822 Non-customer revenues (c) 9,372 19,206 Total electric revenues 2,330,225 4,578,486 Natural gas 29,943 86,638 Entergy Wholesale Commodities: Competitive businesses sales (a) 331,562 740,697 Non-customer revenues (c) (22,960 ) (13,171 ) Total competitive businesses 308,602 727,526 Total operating revenues $2,668,770 $5,392,650 The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 (a) Sales for resale and competitive businesses sales include day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments, and includes them as part of customer revenues. (b) Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market and unbilled revenue. (c) Non-customer revenues include the settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees. Electric Revenues Entergy’s primary source of revenue is from retail electric sales sold under tariff rates approved by regulators in its various jurisdictions. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, Mississippi, and Texas. Energy is provided on demand throughout the month, measured by a meter located at the customer’s property. Approved rates vary by customer class due to differing requirements of the customers and market factors involved in fulfilling those requirements. Entergy issues monthly bills to customers at rates approved by regulators for power and related services provided during the previous billing cycle. To the extent that deliveries have occurred but a bill has not been issued, Entergy’s Utility operating companies record an estimate for energy delivered since the latest billings. The Utility operating companies calculate the estimate based upon several factors including billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and market prices of power in the respective jurisdiction. The inputs are revised as needed to approximate actual usage and cost. Each month, estimated unbilled amounts are recorded as unbilled revenue and accounts receivable, and the prior month’s estimate is reversed. Price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the other. This may result in variability of reported revenues from one period to the next as prior estimates are reversed and new estimates recorded. Entergy may record revenue based on rates that are subject to refund. Such revenues are reduced by estimated refund amounts when Entergy believes refunds are probable based on the status of rate proceedings as of the date financial statements are prepared. Because these refunds will be made through a reduction in future rates, and not as a reduction in bills previously issued, they are presented as non-customer revenue in the table above. System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC. Entergy’s Utility operating companies also sell excess power not needed for its own customers, primarily through transactions with MISO, a regional transmission organization that maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. In the MISO market, Entergy offers its generation and bids its load into the market. MISO settles these offers and bids based on locational marginal prices. These represent pricing for energy at a given location based on a market clearing price that takes into account physical limitations on the transmission system, generation, and demand throughout the MISO region. MISO evaluates each market participant’s energy offers and demand bids to economically and reliably dispatch the entire MISO system. Entergy nets purchases and sales within the MISO market and reports in operating revenues when in a net selling position and in operating expenses when in a net purchasing position. Natural Gas Entergy Louisiana and Entergy New Orleans also distribute natural gas to retail customers in and around Baton Rouge, Louisiana, and the City of New Orleans, including Algiers, respectively. Gas transferred to customers is measured by a meter at the customer’s property. Entergy issues monthly invoices to customers at rates approved by regulators for the volume of gas transferred to date. Competitive Businesses Revenues The Entergy Wholesale Commodities segment derives almost all of its revenue from sales of electric power and capacity produced by its operating plants to wholesale customers. The majority of Entergy Wholesale Commodities revenues are from Entergy’s nuclear power plants located in the northern United States. Entergy issues monthly invoices to the counterparties for these electric sales at the respective contracted or ISO market rate of electricity and related services provided during the previous month. Most of the Palisades nuclear plant output is sold under a 15-year PPA with Consumers Energy, executed as part of the acquisition of the plant in 2007 and expiring in 2022. The PPA prices are for a set price per MWh and escalate each year, up to $61.50 /MWh in 2022. Entergy issues monthly invoices to Consumers Energy for electric sales based on the actual output of electricity and related services provided during the previous month at the contract price. Additionally, as the PPA pricing was considered below-market at the time of acquisition, a liability was recorded for the fair value of the below-market PPA, and is being amortized to revenue over the life of the agreement. Practical Expedients and Exceptions Entergy has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less, or for revenue recognized in an amount equal to what Entergy has the right to bill the customer for services performed. Most of Entergy’s contracts, except in a few cases where there are defined minimums or stated terms, are on demand. This results in customer bills that vary each month based on an approved tariff and usage. Entergy imposes monthly or annual minimum requirements on some customers primarily as credit and cost recovery guarantees and not as pricing for unsatisfied performance obligations. These minimums typically expire after the initial term or when specified costs have been recovered. The minimum amounts are part of each month’s bill and recognized as revenue accordingly. Some of the subsidiaries within the Entergy Wholesale Commodities segment have operations and maintenance services contracts that have fixed components and terms longer than one year. The total fixed consideration related to these unsatisfied performance obligations, however, is not material to Entergy revenues. Recovery of Fuel Costs Entergy’s Utility operating companies’ rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of fuel costs until the costs are billed to customers. Where the fuel component of revenues is based on a pre-determined fuel cost (fixed fuel factor), the fuel factor remains in effect until changed as part of a general rate case, fuel reconciliation, or fixed fuel factor filing. System Energy’s operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf. The capital costs are based on System Energy’s common equity funds allocable to its net investment in Grand Gulf, plus System Energy’s effective interest cost for its debt allocable to its investment in Grand Gulf. Taxes Imposed on Revenue-Producing Transactions Governmental authorities assess taxes that are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer, including, but not limited to, sales, use, value added, and some excise taxes. Entergy presents these taxes on a net basis, excluding them from revenues. |
Entergy Mississippi [Member] | |
Revenue Recognition | REVENUE RECOGNITION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Revenue Recognition Entergy implemented ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” effective January 1, 2018. Topic 606 requires entities to “recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU details a five-step model that should be followed to achieve the core principle. This accounting was applied to all contracts using the modified retrospective method, which requires an adjustment to retained earnings for the cumulative effect of adopting the standard as of the effective date. Because the standard did not result in any material change in how Entergy recognizes revenue, however, no adjustment to retained earnings was required. Similarly, there was no effect on revenues recognized under Topic 606 for the three or six months ended June 30, 2018. Revenues from electric service and the sale of natural gas are recognized when services are transferred to the customer in an amount equal to what Entergy has the right to bill the customer because this amount represents the value of services provided to customers. Entergy’s total revenues for the three and six months ended June 30, 2018 were as follows: 2018 Three Months Ended Six Months Ended (In Thousands) Utility: Residential $768,710 $1,660,795 Commercial 581,899 1,177,620 Industrial 624,818 1,222,004 Governmental 56,823 113,301 Total billed retail 2,032,250 4,173,720 Sales for resale (a) 69,212 138,738 Other electric revenues (b) 219,391 246,822 Non-customer revenues (c) 9,372 19,206 Total electric revenues 2,330,225 4,578,486 Natural gas 29,943 86,638 Entergy Wholesale Commodities: Competitive businesses sales (a) 331,562 740,697 Non-customer revenues (c) (22,960 ) (13,171 ) Total competitive businesses 308,602 727,526 Total operating revenues $2,668,770 $5,392,650 The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 (a) Sales for resale and competitive businesses sales include day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments, and includes them as part of customer revenues. (b) Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market and unbilled revenue. (c) Non-customer revenues include the settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees. Electric Revenues Entergy’s primary source of revenue is from retail electric sales sold under tariff rates approved by regulators in its various jurisdictions. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, Mississippi, and Texas. Energy is provided on demand throughout the month, measured by a meter located at the customer’s property. Approved rates vary by customer class due to differing requirements of the customers and market factors involved in fulfilling those requirements. Entergy issues monthly bills to customers at rates approved by regulators for power and related services provided during the previous billing cycle. To the extent that deliveries have occurred but a bill has not been issued, Entergy’s Utility operating companies record an estimate for energy delivered since the latest billings. The Utility operating companies calculate the estimate based upon several factors including billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and market prices of power in the respective jurisdiction. The inputs are revised as needed to approximate actual usage and cost. Each month, estimated unbilled amounts are recorded as unbilled revenue and accounts receivable, and the prior month’s estimate is reversed. Price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the other. This may result in variability of reported revenues from one period to the next as prior estimates are reversed and new estimates recorded. Entergy may record revenue based on rates that are subject to refund. Such revenues are reduced by estimated refund amounts when Entergy believes refunds are probable based on the status of rate proceedings as of the date financial statements are prepared. Because these refunds will be made through a reduction in future rates, and not as a reduction in bills previously issued, they are presented as non-customer revenue in the table above. System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC. Entergy’s Utility operating companies also sell excess power not needed for its own customers, primarily through transactions with MISO, a regional transmission organization that maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. In the MISO market, Entergy offers its generation and bids its load into the market. MISO settles these offers and bids based on locational marginal prices. These represent pricing for energy at a given location based on a market clearing price that takes into account physical limitations on the transmission system, generation, and demand throughout the MISO region. MISO evaluates each market participant’s energy offers and demand bids to economically and reliably dispatch the entire MISO system. Entergy nets purchases and sales within the MISO market and reports in operating revenues when in a net selling position and in operating expenses when in a net purchasing position. Natural Gas Entergy Louisiana and Entergy New Orleans also distribute natural gas to retail customers in and around Baton Rouge, Louisiana, and the City of New Orleans, including Algiers, respectively. Gas transferred to customers is measured by a meter at the customer’s property. Entergy issues monthly invoices to customers at rates approved by regulators for the volume of gas transferred to date. Competitive Businesses Revenues The Entergy Wholesale Commodities segment derives almost all of its revenue from sales of electric power and capacity produced by its operating plants to wholesale customers. The majority of Entergy Wholesale Commodities revenues are from Entergy’s nuclear power plants located in the northern United States. Entergy issues monthly invoices to the counterparties for these electric sales at the respective contracted or ISO market rate of electricity and related services provided during the previous month. Most of the Palisades nuclear plant output is sold under a 15-year PPA with Consumers Energy, executed as part of the acquisition of the plant in 2007 and expiring in 2022. The PPA prices are for a set price per MWh and escalate each year, up to $61.50 /MWh in 2022. Entergy issues monthly invoices to Consumers Energy for electric sales based on the actual output of electricity and related services provided during the previous month at the contract price. Additionally, as the PPA pricing was considered below-market at the time of acquisition, a liability was recorded for the fair value of the below-market PPA, and is being amortized to revenue over the life of the agreement. Practical Expedients and Exceptions Entergy has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less, or for revenue recognized in an amount equal to what Entergy has the right to bill the customer for services performed. Most of Entergy’s contracts, except in a few cases where there are defined minimums or stated terms, are on demand. This results in customer bills that vary each month based on an approved tariff and usage. Entergy imposes monthly or annual minimum requirements on some customers primarily as credit and cost recovery guarantees and not as pricing for unsatisfied performance obligations. These minimums typically expire after the initial term or when specified costs have been recovered. The minimum amounts are part of each month’s bill and recognized as revenue accordingly. Some of the subsidiaries within the Entergy Wholesale Commodities segment have operations and maintenance services contracts that have fixed components and terms longer than one year. The total fixed consideration related to these unsatisfied performance obligations, however, is not material to Entergy revenues. Recovery of Fuel Costs Entergy’s Utility operating companies’ rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of fuel costs until the costs are billed to customers. Where the fuel component of revenues is based on a pre-determined fuel cost (fixed fuel factor), the fuel factor remains in effect until changed as part of a general rate case, fuel reconciliation, or fixed fuel factor filing. System Energy’s operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf. The capital costs are based on System Energy’s common equity funds allocable to its net investment in Grand Gulf, plus System Energy’s effective interest cost for its debt allocable to its investment in Grand Gulf. Taxes Imposed on Revenue-Producing Transactions Governmental authorities assess taxes that are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer, including, but not limited to, sales, use, value added, and some excise taxes. Entergy presents these taxes on a net basis, excluding them from revenues. |
Entergy New Orleans [Member] | |
Revenue Recognition | REVENUE RECOGNITION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Revenue Recognition Entergy implemented ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” effective January 1, 2018. Topic 606 requires entities to “recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU details a five-step model that should be followed to achieve the core principle. This accounting was applied to all contracts using the modified retrospective method, which requires an adjustment to retained earnings for the cumulative effect of adopting the standard as of the effective date. Because the standard did not result in any material change in how Entergy recognizes revenue, however, no adjustment to retained earnings was required. Similarly, there was no effect on revenues recognized under Topic 606 for the three or six months ended June 30, 2018. Revenues from electric service and the sale of natural gas are recognized when services are transferred to the customer in an amount equal to what Entergy has the right to bill the customer because this amount represents the value of services provided to customers. Entergy’s total revenues for the three and six months ended June 30, 2018 were as follows: 2018 Three Months Ended Six Months Ended (In Thousands) Utility: Residential $768,710 $1,660,795 Commercial 581,899 1,177,620 Industrial 624,818 1,222,004 Governmental 56,823 113,301 Total billed retail 2,032,250 4,173,720 Sales for resale (a) 69,212 138,738 Other electric revenues (b) 219,391 246,822 Non-customer revenues (c) 9,372 19,206 Total electric revenues 2,330,225 4,578,486 Natural gas 29,943 86,638 Entergy Wholesale Commodities: Competitive businesses sales (a) 331,562 740,697 Non-customer revenues (c) (22,960 ) (13,171 ) Total competitive businesses 308,602 727,526 Total operating revenues $2,668,770 $5,392,650 The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 (a) Sales for resale and competitive businesses sales include day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments, and includes them as part of customer revenues. (b) Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market and unbilled revenue. (c) Non-customer revenues include the settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees. Electric Revenues Entergy’s primary source of revenue is from retail electric sales sold under tariff rates approved by regulators in its various jurisdictions. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, Mississippi, and Texas. Energy is provided on demand throughout the month, measured by a meter located at the customer’s property. Approved rates vary by customer class due to differing requirements of the customers and market factors involved in fulfilling those requirements. Entergy issues monthly bills to customers at rates approved by regulators for power and related services provided during the previous billing cycle. To the extent that deliveries have occurred but a bill has not been issued, Entergy’s Utility operating companies record an estimate for energy delivered since the latest billings. The Utility operating companies calculate the estimate based upon several factors including billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and market prices of power in the respective jurisdiction. The inputs are revised as needed to approximate actual usage and cost. Each month, estimated unbilled amounts are recorded as unbilled revenue and accounts receivable, and the prior month’s estimate is reversed. Price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the other. This may result in variability of reported revenues from one period to the next as prior estimates are reversed and new estimates recorded. Entergy may record revenue based on rates that are subject to refund. Such revenues are reduced by estimated refund amounts when Entergy believes refunds are probable based on the status of rate proceedings as of the date financial statements are prepared. Because these refunds will be made through a reduction in future rates, and not as a reduction in bills previously issued, they are presented as non-customer revenue in the table above. System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC. Entergy’s Utility operating companies also sell excess power not needed for its own customers, primarily through transactions with MISO, a regional transmission organization that maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. In the MISO market, Entergy offers its generation and bids its load into the market. MISO settles these offers and bids based on locational marginal prices. These represent pricing for energy at a given location based on a market clearing price that takes into account physical limitations on the transmission system, generation, and demand throughout the MISO region. MISO evaluates each market participant’s energy offers and demand bids to economically and reliably dispatch the entire MISO system. Entergy nets purchases and sales within the MISO market and reports in operating revenues when in a net selling position and in operating expenses when in a net purchasing position. Natural Gas Entergy Louisiana and Entergy New Orleans also distribute natural gas to retail customers in and around Baton Rouge, Louisiana, and the City of New Orleans, including Algiers, respectively. Gas transferred to customers is measured by a meter at the customer’s property. Entergy issues monthly invoices to customers at rates approved by regulators for the volume of gas transferred to date. Competitive Businesses Revenues The Entergy Wholesale Commodities segment derives almost all of its revenue from sales of electric power and capacity produced by its operating plants to wholesale customers. The majority of Entergy Wholesale Commodities revenues are from Entergy’s nuclear power plants located in the northern United States. Entergy issues monthly invoices to the counterparties for these electric sales at the respective contracted or ISO market rate of electricity and related services provided during the previous month. Most of the Palisades nuclear plant output is sold under a 15-year PPA with Consumers Energy, executed as part of the acquisition of the plant in 2007 and expiring in 2022. The PPA prices are for a set price per MWh and escalate each year, up to $61.50 /MWh in 2022. Entergy issues monthly invoices to Consumers Energy for electric sales based on the actual output of electricity and related services provided during the previous month at the contract price. Additionally, as the PPA pricing was considered below-market at the time of acquisition, a liability was recorded for the fair value of the below-market PPA, and is being amortized to revenue over the life of the agreement. Practical Expedients and Exceptions Entergy has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less, or for revenue recognized in an amount equal to what Entergy has the right to bill the customer for services performed. Most of Entergy’s contracts, except in a few cases where there are defined minimums or stated terms, are on demand. This results in customer bills that vary each month based on an approved tariff and usage. Entergy imposes monthly or annual minimum requirements on some customers primarily as credit and cost recovery guarantees and not as pricing for unsatisfied performance obligations. These minimums typically expire after the initial term or when specified costs have been recovered. The minimum amounts are part of each month’s bill and recognized as revenue accordingly. Some of the subsidiaries within the Entergy Wholesale Commodities segment have operations and maintenance services contracts that have fixed components and terms longer than one year. The total fixed consideration related to these unsatisfied performance obligations, however, is not material to Entergy revenues. Recovery of Fuel Costs Entergy’s Utility operating companies’ rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of fuel costs until the costs are billed to customers. Where the fuel component of revenues is based on a pre-determined fuel cost (fixed fuel factor), the fuel factor remains in effect until changed as part of a general rate case, fuel reconciliation, or fixed fuel factor filing. System Energy’s operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf. The capital costs are based on System Energy’s common equity funds allocable to its net investment in Grand Gulf, plus System Energy’s effective interest cost for its debt allocable to its investment in Grand Gulf. Taxes Imposed on Revenue-Producing Transactions Governmental authorities assess taxes that are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer, including, but not limited to, sales, use, value added, and some excise taxes. Entergy presents these taxes on a net basis, excluding them from revenues. |
Entergy Texas [Member] | |
Revenue Recognition | REVENUE RECOGNITION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Revenue Recognition Entergy implemented ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” effective January 1, 2018. Topic 606 requires entities to “recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU details a five-step model that should be followed to achieve the core principle. This accounting was applied to all contracts using the modified retrospective method, which requires an adjustment to retained earnings for the cumulative effect of adopting the standard as of the effective date. Because the standard did not result in any material change in how Entergy recognizes revenue, however, no adjustment to retained earnings was required. Similarly, there was no effect on revenues recognized under Topic 606 for the three or six months ended June 30, 2018. Revenues from electric service and the sale of natural gas are recognized when services are transferred to the customer in an amount equal to what Entergy has the right to bill the customer because this amount represents the value of services provided to customers. Entergy’s total revenues for the three and six months ended June 30, 2018 were as follows: 2018 Three Months Ended Six Months Ended (In Thousands) Utility: Residential $768,710 $1,660,795 Commercial 581,899 1,177,620 Industrial 624,818 1,222,004 Governmental 56,823 113,301 Total billed retail 2,032,250 4,173,720 Sales for resale (a) 69,212 138,738 Other electric revenues (b) 219,391 246,822 Non-customer revenues (c) 9,372 19,206 Total electric revenues 2,330,225 4,578,486 Natural gas 29,943 86,638 Entergy Wholesale Commodities: Competitive businesses sales (a) 331,562 740,697 Non-customer revenues (c) (22,960 ) (13,171 ) Total competitive businesses 308,602 727,526 Total operating revenues $2,668,770 $5,392,650 The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 (a) Sales for resale and competitive businesses sales include day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments, and includes them as part of customer revenues. (b) Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market and unbilled revenue. (c) Non-customer revenues include the settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees. Electric Revenues Entergy’s primary source of revenue is from retail electric sales sold under tariff rates approved by regulators in its various jurisdictions. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, Mississippi, and Texas. Energy is provided on demand throughout the month, measured by a meter located at the customer’s property. Approved rates vary by customer class due to differing requirements of the customers and market factors involved in fulfilling those requirements. Entergy issues monthly bills to customers at rates approved by regulators for power and related services provided during the previous billing cycle. To the extent that deliveries have occurred but a bill has not been issued, Entergy’s Utility operating companies record an estimate for energy delivered since the latest billings. The Utility operating companies calculate the estimate based upon several factors including billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and market prices of power in the respective jurisdiction. The inputs are revised as needed to approximate actual usage and cost. Each month, estimated unbilled amounts are recorded as unbilled revenue and accounts receivable, and the prior month’s estimate is reversed. Price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the other. This may result in variability of reported revenues from one period to the next as prior estimates are reversed and new estimates recorded. Entergy may record revenue based on rates that are subject to refund. Such revenues are reduced by estimated refund amounts when Entergy believes refunds are probable based on the status of rate proceedings as of the date financial statements are prepared. Because these refunds will be made through a reduction in future rates, and not as a reduction in bills previously issued, they are presented as non-customer revenue in the table above. System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC. Entergy’s Utility operating companies also sell excess power not needed for its own customers, primarily through transactions with MISO, a regional transmission organization that maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. In the MISO market, Entergy offers its generation and bids its load into the market. MISO settles these offers and bids based on locational marginal prices. These represent pricing for energy at a given location based on a market clearing price that takes into account physical limitations on the transmission system, generation, and demand throughout the MISO region. MISO evaluates each market participant’s energy offers and demand bids to economically and reliably dispatch the entire MISO system. Entergy nets purchases and sales within the MISO market and reports in operating revenues when in a net selling position and in operating expenses when in a net purchasing position. Natural Gas Entergy Louisiana and Entergy New Orleans also distribute natural gas to retail customers in and around Baton Rouge, Louisiana, and the City of New Orleans, including Algiers, respectively. Gas transferred to customers is measured by a meter at the customer’s property. Entergy issues monthly invoices to customers at rates approved by regulators for the volume of gas transferred to date. Competitive Businesses Revenues The Entergy Wholesale Commodities segment derives almost all of its revenue from sales of electric power and capacity produced by its operating plants to wholesale customers. The majority of Entergy Wholesale Commodities revenues are from Entergy’s nuclear power plants located in the northern United States. Entergy issues monthly invoices to the counterparties for these electric sales at the respective contracted or ISO market rate of electricity and related services provided during the previous month. Most of the Palisades nuclear plant output is sold under a 15-year PPA with Consumers Energy, executed as part of the acquisition of the plant in 2007 and expiring in 2022. The PPA prices are for a set price per MWh and escalate each year, up to $61.50 /MWh in 2022. Entergy issues monthly invoices to Consumers Energy for electric sales based on the actual output of electricity and related services provided during the previous month at the contract price. Additionally, as the PPA pricing was considered below-market at the time of acquisition, a liability was recorded for the fair value of the below-market PPA, and is being amortized to revenue over the life of the agreement. Practical Expedients and Exceptions Entergy has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less, or for revenue recognized in an amount equal to what Entergy has the right to bill the customer for services performed. Most of Entergy’s contracts, except in a few cases where there are defined minimums or stated terms, are on demand. This results in customer bills that vary each month based on an approved tariff and usage. Entergy imposes monthly or annual minimum requirements on some customers primarily as credit and cost recovery guarantees and not as pricing for unsatisfied performance obligations. These minimums typically expire after the initial term or when specified costs have been recovered. The minimum amounts are part of each month’s bill and recognized as revenue accordingly. Some of the subsidiaries within the Entergy Wholesale Commodities segment have operations and maintenance services contracts that have fixed components and terms longer than one year. The total fixed consideration related to these unsatisfied performance obligations, however, is not material to Entergy revenues. Recovery of Fuel Costs Entergy’s Utility operating companies’ rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of fuel costs until the costs are billed to customers. Where the fuel component of revenues is based on a pre-determined fuel cost (fixed fuel factor), the fuel factor remains in effect until changed as part of a general rate case, fuel reconciliation, or fixed fuel factor filing. System Energy’s operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf. The capital costs are based on System Energy’s common equity funds allocable to its net investment in Grand Gulf, plus System Energy’s effective interest cost for its debt allocable to its investment in Grand Gulf. Taxes Imposed on Revenue-Producing Transactions Governmental authorities assess taxes that are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer, including, but not limited to, sales, use, value added, and some excise taxes. Entergy presents these taxes on a net basis, excluding them from revenues. |
System Energy [Member] | |
Revenue Recognition | REVENUE RECOGNITION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Revenue Recognition Entergy implemented ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” effective January 1, 2018. Topic 606 requires entities to “recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU details a five-step model that should be followed to achieve the core principle. This accounting was applied to all contracts using the modified retrospective method, which requires an adjustment to retained earnings for the cumulative effect of adopting the standard as of the effective date. Because the standard did not result in any material change in how Entergy recognizes revenue, however, no adjustment to retained earnings was required. Similarly, there was no effect on revenues recognized under Topic 606 for the three or six months ended June 30, 2018. Revenues from electric service and the sale of natural gas are recognized when services are transferred to the customer in an amount equal to what Entergy has the right to bill the customer because this amount represents the value of services provided to customers. Entergy’s total revenues for the three and six months ended June 30, 2018 were as follows: 2018 Three Months Ended Six Months Ended (In Thousands) Utility: Residential $768,710 $1,660,795 Commercial 581,899 1,177,620 Industrial 624,818 1,222,004 Governmental 56,823 113,301 Total billed retail 2,032,250 4,173,720 Sales for resale (a) 69,212 138,738 Other electric revenues (b) 219,391 246,822 Non-customer revenues (c) 9,372 19,206 Total electric revenues 2,330,225 4,578,486 Natural gas 29,943 86,638 Entergy Wholesale Commodities: Competitive businesses sales (a) 331,562 740,697 Non-customer revenues (c) (22,960 ) (13,171 ) Total competitive businesses 308,602 727,526 Total operating revenues $2,668,770 $5,392,650 The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 (a) Sales for resale and competitive businesses sales include day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments, and includes them as part of customer revenues. (b) Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market and unbilled revenue. (c) Non-customer revenues include the settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees. Electric Revenues Entergy’s primary source of revenue is from retail electric sales sold under tariff rates approved by regulators in its various jurisdictions. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, Mississippi, and Texas. Energy is provided on demand throughout the month, measured by a meter located at the customer’s property. Approved rates vary by customer class due to differing requirements of the customers and market factors involved in fulfilling those requirements. Entergy issues monthly bills to customers at rates approved by regulators for power and related services provided during the previous billing cycle. To the extent that deliveries have occurred but a bill has not been issued, Entergy’s Utility operating companies record an estimate for energy delivered since the latest billings. The Utility operating companies calculate the estimate based upon several factors including billings through the last billing cycle in a month, actual generation in the month, historical line loss factors, and market prices of power in the respective jurisdiction. The inputs are revised as needed to approximate actual usage and cost. Each month, estimated unbilled amounts are recorded as unbilled revenue and accounts receivable, and the prior month’s estimate is reversed. Price and volume differences resulting from factors such as weather affect the calculation of unbilled revenues from one period to the other. This may result in variability of reported revenues from one period to the next as prior estimates are reversed and new estimates recorded. Entergy may record revenue based on rates that are subject to refund. Such revenues are reduced by estimated refund amounts when Entergy believes refunds are probable based on the status of rate proceedings as of the date financial statements are prepared. Because these refunds will be made through a reduction in future rates, and not as a reduction in bills previously issued, they are presented as non-customer revenue in the table above. System Energy’s only source of revenue is the sale of electric power and capacity generated from its 90% interest in the Grand Gulf nuclear plant to Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy issues monthly bills to its affiliated customers equal to its actual operating costs plus a return on common equity approved by the FERC. Entergy’s Utility operating companies also sell excess power not needed for its own customers, primarily through transactions with MISO, a regional transmission organization that maintains functional control over the combined transmission systems of its members and manages one of the largest energy markets in the U.S. In the MISO market, Entergy offers its generation and bids its load into the market. MISO settles these offers and bids based on locational marginal prices. These represent pricing for energy at a given location based on a market clearing price that takes into account physical limitations on the transmission system, generation, and demand throughout the MISO region. MISO evaluates each market participant’s energy offers and demand bids to economically and reliably dispatch the entire MISO system. Entergy nets purchases and sales within the MISO market and reports in operating revenues when in a net selling position and in operating expenses when in a net purchasing position. Natural Gas Entergy Louisiana and Entergy New Orleans also distribute natural gas to retail customers in and around Baton Rouge, Louisiana, and the City of New Orleans, including Algiers, respectively. Gas transferred to customers is measured by a meter at the customer’s property. Entergy issues monthly invoices to customers at rates approved by regulators for the volume of gas transferred to date. Competitive Businesses Revenues The Entergy Wholesale Commodities segment derives almost all of its revenue from sales of electric power and capacity produced by its operating plants to wholesale customers. The majority of Entergy Wholesale Commodities revenues are from Entergy’s nuclear power plants located in the northern United States. Entergy issues monthly invoices to the counterparties for these electric sales at the respective contracted or ISO market rate of electricity and related services provided during the previous month. Most of the Palisades nuclear plant output is sold under a 15-year PPA with Consumers Energy, executed as part of the acquisition of the plant in 2007 and expiring in 2022. The PPA prices are for a set price per MWh and escalate each year, up to $61.50 /MWh in 2022. Entergy issues monthly invoices to Consumers Energy for electric sales based on the actual output of electricity and related services provided during the previous month at the contract price. Additionally, as the PPA pricing was considered below-market at the time of acquisition, a liability was recorded for the fair value of the below-market PPA, and is being amortized to revenue over the life of the agreement. Practical Expedients and Exceptions Entergy has elected not to disclose the value of unsatisfied performance obligations for contracts with an original expected term of one year or less, or for revenue recognized in an amount equal to what Entergy has the right to bill the customer for services performed. Most of Entergy’s contracts, except in a few cases where there are defined minimums or stated terms, are on demand. This results in customer bills that vary each month based on an approved tariff and usage. Entergy imposes monthly or annual minimum requirements on some customers primarily as credit and cost recovery guarantees and not as pricing for unsatisfied performance obligations. These minimums typically expire after the initial term or when specified costs have been recovered. The minimum amounts are part of each month’s bill and recognized as revenue accordingly. Some of the subsidiaries within the Entergy Wholesale Commodities segment have operations and maintenance services contracts that have fixed components and terms longer than one year. The total fixed consideration related to these unsatisfied performance obligations, however, is not material to Entergy revenues. Recovery of Fuel Costs Entergy’s Utility operating companies’ rate schedules include either fuel adjustment clauses or fixed fuel factors, which allow either current recovery in billings to customers or deferral of fuel costs until the costs are billed to customers. Where the fuel component of revenues is based on a pre-determined fuel cost (fixed fuel factor), the fuel factor remains in effect until changed as part of a general rate case, fuel reconciliation, or fixed fuel factor filing. System Energy’s operating revenues are intended to recover from Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans operating expenses and capital costs attributable to Grand Gulf. The capital costs are based on System Energy’s common equity funds allocable to its net investment in Grand Gulf, plus System Energy’s effective interest cost for its debt allocable to its investment in Grand Gulf. Taxes Imposed on Revenue-Producing Transactions Governmental authorities assess taxes that are both imposed on and concurrent with a specific revenue-producing transaction between a seller and a customer, including, but not limited to, sales, use, value added, and some excise taxes. Entergy presents these taxes on a net basis, excluding them from revenues. |
Asset Retirement Obligations As
Asset Retirement Obligations Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2018 | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 9 to the financial statements in the Form 10-K for a discussion of asset retirement obligations. The following is an update to that discussion. In the first quarter 2018, Entergy Louisiana recorded a revision to its estimated decommissioning cost liability for River Bend as a result of a revised decommissioning cost study. The revised estimate resulted in an $85.4 million increase in its decommissioning cost liability, along with a corresponding increase in the related asset retirement cost asset that will be depreciated over the remaining life of the unit. |
Entergy Arkansas [Member] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 9 to the financial statements in the Form 10-K for a discussion of asset retirement obligations. The following is an update to that discussion. In the first quarter 2018, Entergy Louisiana recorded a revision to its estimated decommissioning cost liability for River Bend as a result of a revised decommissioning cost study. The revised estimate resulted in an $85.4 million increase in its decommissioning cost liability, along with a corresponding increase in the related asset retirement cost asset that will be depreciated over the remaining life of the unit. |
Entergy Louisiana [Member] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 9 to the financial statements in the Form 10-K for a discussion of asset retirement obligations. The following is an update to that discussion. In the first quarter 2018, Entergy Louisiana recorded a revision to its estimated decommissioning cost liability for River Bend as a result of a revised decommissioning cost study. The revised estimate resulted in an $85.4 million increase in its decommissioning cost liability, along with a corresponding increase in the related asset retirement cost asset that will be depreciated over the remaining life of the unit. |
Entergy Mississippi [Member] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 9 to the financial statements in the Form 10-K for a discussion of asset retirement obligations. The following is an update to that discussion. In the first quarter 2018, Entergy Louisiana recorded a revision to its estimated decommissioning cost liability for River Bend as a result of a revised decommissioning cost study. The revised estimate resulted in an $85.4 million increase in its decommissioning cost liability, along with a corresponding increase in the related asset retirement cost asset that will be depreciated over the remaining life of the unit. |
Entergy New Orleans [Member] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 9 to the financial statements in the Form 10-K for a discussion of asset retirement obligations. The following is an update to that discussion. In the first quarter 2018, Entergy Louisiana recorded a revision to its estimated decommissioning cost liability for River Bend as a result of a revised decommissioning cost study. The revised estimate resulted in an $85.4 million increase in its decommissioning cost liability, along with a corresponding increase in the related asset retirement cost asset that will be depreciated over the remaining life of the unit. |
Entergy Texas [Member] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 9 to the financial statements in the Form 10-K for a discussion of asset retirement obligations. The following is an update to that discussion. In the first quarter 2018, Entergy Louisiana recorded a revision to its estimated decommissioning cost liability for River Bend as a result of a revised decommissioning cost study. The revised estimate resulted in an $85.4 million increase in its decommissioning cost liability, along with a corresponding increase in the related asset retirement cost asset that will be depreciated over the remaining life of the unit. |
System Energy [Member] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) See Note 9 to the financial statements in the Form 10-K for a discussion of asset retirement obligations. The following is an update to that discussion. In the first quarter 2018, Entergy Louisiana recorded a revision to its estimated decommissioning cost liability for River Bend as a result of a revised decommissioning cost study. The revised estimate resulted in an $85.4 million increase in its decommissioning cost liability, along with a corresponding increase in the related asset retirement cost asset that will be depreciated over the remaining life of the unit. |
Rate And Regulatory Matters Rat
Rate And Regulatory Matters Rate and Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Entergy Arkansas [Member] | |
System Agreement Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | The filing shows the additional following payments and receipts among the Utility operating companies: Payments (Receipts) (In Millions) Entergy Arkansas ($4) Entergy Louisiana ($23) Entergy Mississippi $16 Entergy New Orleans $5 Entergy Texas $6 |
Rough Production Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | Entergy filed in May 2018 the bandwidth true-up payments and receipts for the 2011-2014 rate filings (table does not net to zero due to rounding): Payments (Receipts) (In Millions) Entergy Arkansas $3 Entergy Louisiana $3 Entergy Mississippi ($1) Entergy New Orleans $1 Entergy Texas ($5) |
Entergy Louisiana [Member] | |
System Agreement Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | The filing shows the additional following payments and receipts among the Utility operating companies: Payments (Receipts) (In Millions) Entergy Arkansas ($4) Entergy Louisiana ($23) Entergy Mississippi $16 Entergy New Orleans $5 Entergy Texas $6 |
Rough Production Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | Entergy filed in May 2018 the bandwidth true-up payments and receipts for the 2011-2014 rate filings (table does not net to zero due to rounding): Payments (Receipts) (In Millions) Entergy Arkansas $3 Entergy Louisiana $3 Entergy Mississippi ($1) Entergy New Orleans $1 Entergy Texas ($5) |
Entergy Mississippi [Member] | |
System Agreement Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | The filing shows the additional following payments and receipts among the Utility operating companies: Payments (Receipts) (In Millions) Entergy Arkansas ($4) Entergy Louisiana ($23) Entergy Mississippi $16 Entergy New Orleans $5 Entergy Texas $6 |
Rough Production Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | Entergy filed in May 2018 the bandwidth true-up payments and receipts for the 2011-2014 rate filings (table does not net to zero due to rounding): Payments (Receipts) (In Millions) Entergy Arkansas $3 Entergy Louisiana $3 Entergy Mississippi ($1) Entergy New Orleans $1 Entergy Texas ($5) |
Entergy New Orleans [Member] | |
System Agreement Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | The filing shows the additional following payments and receipts among the Utility operating companies: Payments (Receipts) (In Millions) Entergy Arkansas ($4) Entergy Louisiana ($23) Entergy Mississippi $16 Entergy New Orleans $5 Entergy Texas $6 |
Rough Production Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | Entergy filed in May 2018 the bandwidth true-up payments and receipts for the 2011-2014 rate filings (table does not net to zero due to rounding): Payments (Receipts) (In Millions) Entergy Arkansas $3 Entergy Louisiana $3 Entergy Mississippi ($1) Entergy New Orleans $1 Entergy Texas ($5) |
Entergy Texas [Member] | |
System Agreement Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | The filing shows the additional following payments and receipts among the Utility operating companies: Payments (Receipts) (In Millions) Entergy Arkansas ($4) Entergy Louisiana ($23) Entergy Mississippi $16 Entergy New Orleans $5 Entergy Texas $6 |
Rough Production Cost Equalization Payments (Receipts) Among Utility Operating Companies [Table Text Block] | Entergy filed in May 2018 the bandwidth true-up payments and receipts for the 2011-2014 rate filings (table does not net to zero due to rounding): Payments (Receipts) (In Millions) Entergy Arkansas $3 Entergy Louisiana $3 Entergy Mississippi ($1) Entergy New Orleans $1 Entergy Texas ($5) |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule Of Earnings Per Share Basic And Diluted | The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements: For the Three Months Ended June 30, 2018 2017 (In Millions, Except Per Share Data) Basic earnings per share Income Shares $/share Income Shares $/share Net income attributable to Entergy Corporation $245.4 180.8 $1.36 $409.9 179.5 $2.28 Average dilutive effect of: Stock options 0.3 — 0.2 — Other equity plans 0.7 (0.01 ) 0.5 (0.01 ) Equity forwards 1.2 (0.01 ) — — Diluted earnings per share $245.4 183.0 $1.34 $409.9 180.2 $2.27 The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the three months ended June 30, 2018 and approximately 2.5 million for the three months ended June 30, 2017 . For the Six Months Ended June 30, 2018 2017 (In Millions, Except Per Share Data) Basic earnings per share Income Shares $/share Income Shares $/share Net income attributable to Entergy Corporation $378.2 180.8 $2.09 $492.5 179.4 $2.75 Average dilutive effect of: Stock options 0.3 — 0.2 — Other equity plans 0.5 — 0.4 (0.01 ) Equity forwards 0.6 (0.01 ) — — Diluted earnings per share $378.2 182.2 $2.08 $492.5 180.0 $2.74 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2018 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, April 1, 2018 $50,194 ($605,491 ) ($6,201 ) ($561,498 ) Other comprehensive income (loss) before reclassifications (62,981 ) — (7,509 ) (70,490 ) Amounts reclassified from accumulated other comprehensive income (loss) (2,087 ) 15,565 4,868 18,346 Net other comprehensive income (loss) for the period (65,068 ) 15,565 (2,641 ) (52,144 ) Ending balance, June 30, 2018 ($14,874 ) ($589,926 ) ($8,842 ) ($613,642 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2017 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Foreign currency translation Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, April 1, 2017 $3,465 ($460,814 ) $467,561 $748 $10,960 Other comprehensive income (loss) before reclassifications 28,057 — 33,870 (748 ) 61,179 Amounts reclassified from accumulated other comprehensive income (loss) (8,108 ) 10,916 (22,174 ) — (19,366 ) Net other comprehensive income (loss) for the period 19,949 10,916 11,696 (748 ) 41,813 Ending balance, June 30, 2017 $23,414 ($449,898 ) $479,257 $— $52,773 The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2018 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Ending balance, December 31, 2017 ($37,477 ) ($531,099 ) $545,045 ($23,531 ) Implementation of accounting standards — — (632,617 ) (632,617 ) Beginning balance, January 1, 2018 ($37,477 ) ($531,099 ) ($87,572 ) ($656,148 ) Other comprehensive income (loss) before reclassifications 8,585 — (43,785 ) (35,200 ) Amounts reclassified from accumulated other comprehensive income (loss) 21,774 32,139 8,288 62,201 Net other comprehensive income (loss) for the period 30,359 32,139 (35,497 ) 27,001 Reclassification pursuant to ASU 2018-02 (7,756 ) (90,966 ) 114,227 15,505 Ending balance, June 30, 2018 ($14,874 ) ($589,926 ) ($8,842 ) ($613,642 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2017 by component: Cash flow hedges net unrealized gain (loss) Pension and other postretirement liabilities Net unrealized investment gain (loss) Foreign currency translation Total Accumulated Other Comprehensive Income (Loss) (In Thousands) Beginning balance, January 1, 2017 $3,993 ($469,446 ) $429,734 $748 ($34,971 ) Other comprehensive income (loss) before reclassifications 60,665 — 73,742 (748 ) 133,659 Amounts reclassified from accumulated other comprehensive income (loss) (41,244 ) 19,548 (24,219 ) — (45,915 ) Net other comprehensive income (loss) for the period 19,421 19,548 49,523 (748 ) 87,744 Ending balance, June 30, 2017 $23,414 ($449,898 ) $479,257 $— $52,773 |
Reclassification out of Accumulated Other Comprehensive Income | Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Cash flow hedges net unrealized gain (loss) Power contracts $2,735 $12,695 Competitive business operating revenues Interest rate swaps (93 ) (219 ) Miscellaneous - net Total realized gain (loss) on cash flow hedges 2,642 12,476 (555 ) (4,368 ) Income taxes Total realized gain (loss) on cash flow hedges (net of tax) $2,087 $8,108 Pension and other postretirement liabilities Amortization of prior-service credit $5,424 $6,564 (a) Amortization of loss (24,808 ) (21,554 ) (a) Settlement loss (406 ) (1,765 ) (a) Total amortization (19,790 ) (16,755 ) 4,225 5,839 Income taxes Total amortization (net of tax) ($15,565 ) ($10,916 ) Net unrealized investment gain (loss) Realized gain (loss) ($7,702 ) $43,479 Interest and investment income 2,834 (21,305 ) Income taxes Total realized investment gain (loss) (net of tax) ($4,868 ) $22,174 Total reclassifications for the period (net of tax) ($18,346 ) $19,366 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the six months ended June 30, 2018 and 2017 are as follows: Amounts reclassified from AOCI Income Statement Location 2018 2017 (In Thousands) Cash flow hedges net unrealized gain (loss) Power contracts ($27,347 ) $63,922 Competitive business operating revenues Interest rate swaps (215 ) (469 ) Miscellaneous - net Total realized gain (loss) on cash flow hedges (27,562 ) 63,453 5,788 (22,209 ) Income taxes Total realized gain (loss) on cash flow hedges (net of tax) ($21,774 ) $41,244 Pension and other postretirement liabilities Amortization of prior-service credit $10,850 $13,126 (a) Amortization of loss (49,760 ) (43,125 ) (a) Settlement loss (2,022 ) (1,765 ) (a) Total amortization (40,932 ) (31,764 ) 8,793 12,216 Income taxes Total amortization (net of tax) ($32,139 ) ($19,548 ) Net unrealized investment gain (loss) Realized gain (loss) ($13,114 ) $47,489 Interest and investment income 4,826 (23,270 ) Income taxes Total realized investment gain (loss) (net of tax) ($8,288 ) $24,219 Total reclassifications for the period (net of tax) ($62,201 ) $45,915 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. |
Entergy Louisiana [Member] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended June 30, 2018 and 2017: Pension and Other 2018 2017 (In Thousands) Beginning balance, April 1, ($56,950 ) ($48,812 ) Amounts reclassified from accumulated other (501 ) (310 ) Net other comprehensive income (loss) for the period (501 ) (310 ) Ending balance, June 30, ($57,451 ) ($49,122 ) The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the six months ended June 30, 2018 and 2017: Pension and Other 2018 2017 (In Thousands) Beginning balance, January 1, ($46,400 ) ($48,442 ) Amounts reclassified from accumulated other (1,002 ) (680 ) Net other comprehensive income (loss) for the period (1,002 ) (680 ) Reclassification pursuant to ASU 2018-02 (10,049 ) — Ending balance, June 30, ($57,451 ) ($49,122 ) |
Reclassification out of Accumulated Other Comprehensive Income | Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Pension and other postretirement liabilities Amortization of prior-service credit $1,934 $1,934 (a) Amortization of loss (1,256 ) (1,332 ) (a) Total amortization 678 602 (177 ) (292 ) Income taxes Total amortization (net of tax) 501 310 Total reclassifications for the period (net of tax) $501 $310 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the six months ended June 30, 2018 and 2017 are as follows: Amounts reclassified Income Statement Location 2018 2017 (In Thousands) Pension and other postretirement liabilities Amortization of prior-service credit $3,868 $3,868 (a) Amortization of loss (2,513 ) (2,664 ) (a) Total amortization 1,355 1,204 (353 ) (524 ) Income taxes Total amortization (net of tax) 1,002 680 Total reclassifications for the period (net of tax) $1,002 $680 (a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details. |
Revolving Credit Facilities, 26
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary Of The Borrowings Outstanding And Capacity Available Under The Facility | Following is a summary of the borrowings outstanding and capacity available under the facility as of June 30, 2018 . Capacity Borrowings Letters of Credit Capacity Available (In Millions) $3,500 $390 $6 $3,104 |
Credit Facilities | Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. |
Uncommitted Standby Letter of Credit Facilities to Support MISO Obligations [Table Text Block] | Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. |
Short-Term Borrowings And The Outstanding Short-Term Borrowings | The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— |
Issuance Of Commercial Paper To Finance Acquisition And Ownership Of Nuclear Fuel | To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. |
Notes Payable By Variable Interest Entities | The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million |
Book Value And The Fair Value Of Long-Term Debt | The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy Arkansas [Member] | |
Credit Facilities | Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. |
Uncommitted Standby Letter of Credit Facilities to Support MISO Obligations [Table Text Block] | Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. |
Short-Term Borrowings And The Outstanding Short-Term Borrowings | The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— |
Issuance Of Commercial Paper To Finance Acquisition And Ownership Of Nuclear Fuel | To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. |
Notes Payable By Variable Interest Entities | The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million |
Book Value And The Fair Value Of Long-Term Debt | The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy Louisiana [Member] | |
Credit Facilities | Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. |
Uncommitted Standby Letter of Credit Facilities to Support MISO Obligations [Table Text Block] | Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. |
Short-Term Borrowings And The Outstanding Short-Term Borrowings | The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— |
Issuance Of Commercial Paper To Finance Acquisition And Ownership Of Nuclear Fuel | To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. |
Notes Payable By Variable Interest Entities | The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million |
Book Value And The Fair Value Of Long-Term Debt | The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy Mississippi [Member] | |
Credit Facilities | Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. |
Uncommitted Standby Letter of Credit Facilities to Support MISO Obligations [Table Text Block] | Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. |
Short-Term Borrowings And The Outstanding Short-Term Borrowings | The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— |
Book Value And The Fair Value Of Long-Term Debt | The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy New Orleans [Member] | |
Credit Facilities | Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. |
Uncommitted Standby Letter of Credit Facilities to Support MISO Obligations [Table Text Block] | Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. |
Short-Term Borrowings And The Outstanding Short-Term Borrowings | The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— |
Book Value And The Fair Value Of Long-Term Debt | The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Entergy Texas [Member] | |
Credit Facilities | Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Interest Rate (a) Amount Drawn as of June 30, 2018 Letters of Credit Outstanding as of June 30, 2018 Entergy Arkansas April 2019 $20 million (b) 3.34% $— $— Entergy Arkansas August 2022 $150 million (c) 3.34% $— $— Entergy Louisiana August 2022 $350 million (c) 3.34% $— $9.1 million Entergy Mississippi May 2019 $37.5 million (d) 3.59% $— $— Entergy Mississippi May 2019 $35 million (d) 3.59% $— $— Entergy Mississippi May 2019 $10 million (d) 3.59% $— $— Entergy New Orleans November 2018 $25 million (c) 3.57% $— $0.8 million Entergy Texas August 2022 $150 million (c) 3.59% $— $24.4 million (a) For credit facilities with no borrowings as of June 30, 2018, the interest rate is the estimated interest rate as of June 30, 2018 that would have been applied to outstanding borrowings under the facility. (b) Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option. (c) The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas. (d) Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option. |
Uncommitted Standby Letter of Credit Facilities to Support MISO Obligations [Table Text Block] | Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2018 : Company Amount of Uncommitted Facility Letter of Credit Fee Letters of Credit Issued as of June 30, 2018 (a) Entergy Arkansas $25 million 0.70% $1 million Entergy Louisiana $125 million 0.70% $37.8 million Entergy Mississippi $40 million 0.70% $20.2 million Entergy New Orleans $15 million 1.00% $7.4 million Entergy Texas $50 million 0.70% $12.5 million (a) As of June 30, 2018 , letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. See Note 8 to the financial statements herein for discussion of financial transmission rights. |
Short-Term Borrowings And The Outstanding Short-Term Borrowings | The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— |
Book Value And The Fair Value Of Long-Term Debt | The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
System Energy [Member] | |
Short-Term Borrowings And The Outstanding Short-Term Borrowings | The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2018 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries: Authorized Borrowings (In Millions) Entergy Arkansas $250 $— Entergy Louisiana $450 $— Entergy Mississippi $175 $63 Entergy New Orleans $150 $23 Entergy Texas $200 $— System Energy $200 $— |
Issuance Of Commercial Paper To Finance Acquisition And Ownership Of Nuclear Fuel | To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issued commercial paper as of June 30, 2018 as follows: Company Expiration Date Amount of Facility Weighted Average Interest Rate on Borrowings (a) Amount Outstanding as of June 30, 2018 (Dollars in Millions) Entergy Arkansas VIE May 2019 $80 3.08% $41.7 Entergy Louisiana River Bend VIE May 2019 $105 3.09% $44.8 Entergy Louisiana Waterford VIE May 2019 $85 3.07% $45.4 System Energy VIE May 2019 $120 3.79% $38.9 (b) (a) Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility. (b) The total amount outstanding as of June 30, 2018 is commercial paper, and is classified as a current liability. |
Notes Payable By Variable Interest Entities | The nuclear fuel company variable interest entities had notes payable that are included in debt on the respective balance sheets as of June 30, 2018 as follows: Company Description Amount Entergy Arkansas VIE 3.65% Series L due July 2021 $90 million Entergy Arkansas VIE 3.17% Series M due December 2023 $40 million Entergy Louisiana River Bend VIE 3.38% Series R due August 2020 $70 million Entergy Louisiana Waterford VIE 3.92% Series H due February 2021 $40 million Entergy Louisiana Waterford VIE 3.22% Series I due December 2023 $20 million System Energy VIE 3.78% Series I due October 2018 $85 million System Energy VIE 3.42% Series J due April 2021 $100 million |
Book Value And The Fair Value Of Long-Term Debt | The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2018 are as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,874,594 $15,521,205 Entergy Arkansas $3,212,424 $2,991,503 Entergy Louisiana $6,491,723 $6,406,225 Entergy Mississippi $1,270,559 $1,240,643 Entergy New Orleans $431,795 $441,342 Entergy Texas $1,548,180 $1,581,882 System Energy $601,662 $571,461 (a) The values exclude lease obligations of $34 million at System Energy and long-term DOE obligations of $185 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2017 were as follows: Book Value of Long-Term Debt Fair Value of Long-Term Debt (a) (b) (In Thousands) Entergy $15,075,266 $15,367,453 Entergy Arkansas $2,952,399 $2,865,844 Entergy Louisiana $6,144,071 $6,389,774 Entergy Mississippi $1,270,122 $1,285,741 Entergy New Orleans $436,870 $455,968 Entergy Texas $1,587,150 $1,661,902 System Energy $551,488 $529,119 (a) The values exclude the lease obligations of $34 million at System Energy and long-term DOE obligations of $183 million at Entergy Arkansas, and include debt due within one year. (b) Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |
Financial Information For Stock Options | The following table includes financial information for outstanding stock options for the three months ended June 30, 2018 and 2017 : 2018 2017 (In Millions) Compensation expense included in Entergy’s net income $1.1 $1.1 Tax benefit recognized in Entergy’s net income $0.3 $0.4 Compensation cost capitalized as part of fixed assets and inventory $0.2 $0.2 The following table includes financial information for outstanding stock options for the six months ended June 30, 2018 and 2017 : 2018 2017 (In Millions) Compensation expense included in Entergy’s net income $2.2 $2.2 Tax benefit recognized in Entergy’s net income $0.6 $0.8 Compensation cost capitalized as part of fixed assets and inventory $0.4 $0.4 |
Financial Information For Restricted Stock | The following table includes financial information for other outstanding equity awards for the three months ended June 30, 2018 and 2017: 2018 2017 (In Millions) Compensation expense included in Entergy’s net income $8.7 $8.2 Tax benefit recognized in Entergy’s net income $2.2 $3.2 Compensation cost capitalized as part of fixed assets and inventory $2.5 $2.2 The following table includes financial information for other outstanding equity awards for the six months ended June 30, 2018 and 2017 : 2018 2017 (In Millions) Compensation expense included in Entergy’s net income $17.5 $16.4 Tax benefit recognized in Entergy’s net income $4.4 $6.3 Compensation cost capitalized as part of fixed assets and inventory $4.8 $4.2 |
Retirement And Other Postreti28
Retirement And Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |
Reclassification out of Accumulated Other Comprehensive Income, amortization | 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 |
Pension Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 2017 (In Thousands) Service cost - benefits earned during the period $38,752 $33,410 Interest cost on projected benefit obligation 66,854 65,206 Expected return on assets (110,535 ) (102,056 ) Amortization of prior service cost 99 65 Amortization of loss 68,526 56,930 Net pension costs $63,696 $53,555 Entergy’s qualified pension cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $77,504 $66,820 Interest cost on projected benefit obligation 133,708 130,412 Expected return on assets (221,070 ) (204,112 ) Amortization of prior service cost 198 130 Amortization of loss 137,052 113,860 Net pension costs $127,392 $107,110 |
Other Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 2017 (In Thousands) Service cost - benefits earned during the period $6,782 $6,729 Interest cost on accumulated postretirement benefit obligation (APBO) 12,681 13,960 Expected return on assets (10,373 ) (9,408 ) Amortization of prior service credit (9,251 ) (10,356 ) Amortization of loss 3,432 5,476 Net other postretirement benefit cost $3,271 $6,401 Entergy’s other postretirement benefit cost, including amounts capitalized, for the six months ended June 30, 2018 and 2017, included the following components: 2018 2017 (In Thousands) Service cost - benefits earned during the period $13,564 $13,458 Interest cost on accumulated postretirement benefit obligation (APBO) 25,362 27,920 Expected return on assets (20,746 ) (18,816 ) Amortization of prior service credit (18,502 ) (20,712 ) Amortization of loss 6,864 10,952 Net other postretirement benefit cost $6,542 $12,802 |
Entergy Arkansas [Member] | Pension Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 |
Expected Employer Contributions | Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy Arkansas [Member] | Other Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 |
Entergy Arkansas [Member] | Non Qualified Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 |
Entergy Louisiana [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Reclassification out of Accumulated Other Comprehensive Income, amortization | 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($99 ) $5,594 ($71 ) $5,424 Amortization of loss (21,957 ) (1,933 ) (918 ) (24,808 ) Settlement loss — — (406 ) (406 ) ($22,056 ) $3,661 ($1,395 ) ($19,790 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (867 ) (387 ) (2 ) (1,256 ) ($867 ) $1,547 ($2 ) $678 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($65 ) $6,718 ($89 ) $6,564 Amortization of loss (18,450 ) (2,202 ) (902 ) (21,554 ) Settlement loss — — (1,765 ) (1,765 ) ($18,515 ) $4,516 ($2,756 ) ($16,755 ) Entergy Louisiana Amortization of prior service credit $— $1,934 $— $1,934 Amortization of loss (865 ) (465 ) (2 ) (1,332 ) ($865 ) $1,469 ($2 ) $602 Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the six months ended June 30, 2018 and 2017: 2018 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($198 ) $11,189 ($141 ) $10,850 Amortization of loss (43,914 ) (3,865 ) (1,981 ) (49,760 ) Settlement loss — — (2,022 ) (2,022 ) ($44,112 ) $7,324 ($4,144 ) ($40,932 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,734 ) (775 ) (4 ) (2,513 ) ($1,734 ) $3,093 ($4 ) $1,355 2017 Qualified Other Non-Qualified Total (In Thousands) Entergy Amortization of prior service (cost)/credit ($130 ) $13,435 ($179 ) $13,126 Amortization of loss (36,899 ) (4,404 ) (1,822 ) (43,125 ) Settlement loss — — (1,765 ) (1,765 ) ($37,029 ) $9,031 ($3,766 ) ($31,764 ) Entergy Louisiana Amortization of prior service credit $— $3,868 $— $3,868 Amortization of loss (1,730 ) (930 ) (4 ) (2,664 ) ($1,730 ) $2,938 ($4 ) $1,204 |
Entergy Louisiana [Member] | Pension Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 |
Expected Employer Contributions | Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy Louisiana [Member] | Other Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 |
Entergy Louisiana [Member] | Non Qualified Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 |
Entergy Mississippi [Member] | Pension Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 |
Expected Employer Contributions | Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy Mississippi [Member] | Other Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 |
Entergy Mississippi [Member] | Non Qualified Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 |
Entergy New Orleans [Member] | Pension Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 |
Expected Employer Contributions | Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy New Orleans [Member] | Other Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 |
Entergy New Orleans [Member] | Non Qualified Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 |
Entergy Texas [Member] | Pension Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 |
Expected Employer Contributions | Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
Entergy Texas [Member] | Other Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 |
Entergy Texas [Member] | Non Qualified Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $122 $46 $77 $21 $270 2017 $267 $47 $63 $18 $126 Reflected in Entergy Arkansas’s non-qualified pension costs in the second quarters of 2018 and 2017, were settlement charges of $10 thousand and $163 thousand , respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’s non-qualified pension costs in the second quarter of 2018 were settlement charges of $139 thousand related to the payment of lump sum benefits out of the plan. The Registrant Subsidiaries recognized the following pension cost for their employees for their non-qualified pension plans for the six months ended June 30, 2018 and 2017: Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) 2018 $254 $96 $157 $42 $407 2017 $372 $96 $127 $36 $253 |
System Energy [Member] | Pension Plans Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $6,189 $8,446 $1,822 $673 $1,589 $1,776 Interest cost on projected benefit obligation 13,004 14,940 3,769 1,813 3,348 3,227 Expected return on assets (21,851 ) (24,809 ) (6,502 ) (2,993 ) (6,523 ) (4,991 ) Amortization of loss 13,412 14,450 3,610 1,954 2,626 3,715 Net pension cost $10,754 $13,027 $2,699 $1,447 $1,040 $3,727 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $5,090 $6,925 $1,472 $625 $1,364 $1,536 Interest cost on projected benefit obligation 12,944 14,809 3,732 1,791 3,392 3,091 Expected return on assets (20,427 ) (23,017 ) (6,131 ) (2,800 ) (6,180 ) (4,663 ) Amortization of loss 11,640 12,354 3,053 1,658 2,310 2,964 Net pension cost $9,247 $11,071 $2,126 $1,274 $886 $2,928 The Registrant Subsidiaries’ qualified pension cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $12,378 $16,892 $3,644 $1,346 $3,178 $3,552 Interest cost on projects benefit obligation 26,008 29,880 7,538 3,626 6,696 6,454 Expected return on assets (43,702 ) (49,618 ) (13,004 ) (5,986 ) (13,046 ) (9,982 ) Amortization of loss 26,824 28,900 7,220 3,908 5,252 7,430 Net pension cost $21,508 $26,054 $5,398 $2,894 $2,080 $7,454 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $10,180 $13,850 $2,944 $1,250 $2,728 $3,072 Interest cost on projected benefit obligation 25,888 29,618 7,464 3,582 6,784 6,182 Expected return on assets (40,854 ) (46,034 ) (12,262 ) (5,600 ) (12,360 ) (9,326 ) Amortization of loss 23,280 24,708 6,106 3,316 4,620 5,928 Net pension cost $18,494 $22,142 $4,252 $2,548 $1,772 $5,856 |
Expected Employer Contributions | Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2018 : Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Expected 2018 pension contributions $64,062 $71,917 $14,933 $7,250 $10,883 $13,786 Pension contributions made through June 2018 $29,453 $33,066 $6,924 $3,373 $5,433 $6,349 Remaining estimated pension contributions to be made in 2018 $34,609 $38,851 $8,009 $3,877 $5,450 $7,437 |
System Energy [Member] | Other Postretirement [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Components Of Net Pension Cost | 2018 Entergy Entergy Entergy Entergy Entergy System (In Thousands) Service cost - benefits earned during the period $793 $1,556 $321 $129 $330 $306 Interest cost on APBO 1,997 2,789 683 417 939 500 Expected return on assets (4,342 ) — (1,303 ) (1,313 ) (2,446 ) (783 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 289 388 377 34 206 233 Net other postretirement benefit cost ($2,541 ) $2,799 ($378 ) ($919 ) ($1,550 ) ($122 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $863 $1,593 $290 $142 $372 $320 Interest cost on APBO 2,255 3,025 690 469 1,124 559 Expected return on assets (3,959 ) — (1,200 ) (1,159 ) (2,180 ) (717 ) Amortization of prior service credit (1,278 ) (1,934 ) (456 ) (186 ) (579 ) (378 ) Amortization of loss 1,115 465 419 105 826 390 Net other postretirement benefit cost ($1,004 ) $3,149 ($257 ) ($629 ) ($437 ) $174 The Registrant Subsidiaries’ other postretirement benefit cost, including amounts capitalized, for their employees for the six months ended June 30, 2018 and 2017, included the following components: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,586 $3,112 $642 $258 $660 $612 Interest cost on APBO 3,994 5,578 1,366 834 1,878 1,000 Expected return on assets (8,684 ) — (2,606 ) (2,626 ) (4,892 ) (1,566 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 578 776 754 68 412 466 Net other postretirement benefit cost ($5,082 ) $5,598 ($756 ) ($1,838 ) ($3,100 ) ($244 ) 2017 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy (In Thousands) Service cost - benefits earned during the period $1,726 $3,186 $580 $284 $744 $640 Interest cost on APBO 4,510 6,050 1,380 938 2,248 1,118 Expected return on assets (7,918 ) — (2,400 ) (2,318 ) (4,360 ) (1,434 ) Amortization of prior service credit (2,556 ) (3,868 ) (912 ) (372 ) (1,158 ) (756 ) Amortization of loss 2,230 930 838 210 1,652 780 Net other postretirement benefit cost ($2,008 ) $6,298 ($514 ) ($1,258 ) ($874 ) $348 |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Financial Information | Entergy’s segment financial information for the second quarters of 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $2,360,208 $308,602 $— ($40 ) $2,668,770 Income taxes ($240,324 ) ($30,144 ) ($10,128 ) $— ($280,596 ) Consolidated net income (loss) $378,394 ($56,337 ) ($41,299 ) ($31,898 ) $248,860 2017 Operating revenues $2,301,332 $317,255 $— ($37 ) $2,618,550 Income taxes $130,851 ($454,944 ) ($13,019 ) $— ($337,112 ) Consolidated net income (loss) $246,382 $223,886 ($25,001 ) ($31,899 ) $413,368 Entergy’s segment financial information for the six months ended June 30, 2018 and 2017 is as follows: Utility Entergy Wholesale Commodities All Other Eliminations Entergy (In Thousands) 2018 Operating revenues $4,665,197 $727,526 $— ($73 ) $5,392,650 Income taxes ($188,100 ) ($31,222 ) ($17,611 ) $— ($236,933 ) Consolidated net income (loss) $596,333 ($74,116 ) ($73,361 ) ($63,797 ) $385,059 Total assets as of June 30, 2018 $44,117,784 $5,433,618 $1,240,106 ($3,168,859 ) $47,622,649 2017 Operating revenues $4,336,444 $870,622 $— ($58) $5,207,008 Income taxes $229,343 ($533,281) ($25,412) $— ($329,350) Consolidated net income (loss) $414,005 $196,689 ($47,477 ) ($63,797 ) $499,420 Total assets as of December 31, 2017 $42,978,669 $5,638,009 $1,011,612 ($2,921,141) $46,707,149 The Entergy Wholesale Commodities business is sometimes referred to as the “competitive businesses.” Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment. |
Restructuring and Related Costs [Table Text Block] | Total restructuring charges for the second quarters of 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance expenses and other benefits-related costs Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of April 1, $109 $14 $123 $94 $21 $115 Restructuring costs accrued 34 — 34 42 — 42 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 In addition, Entergy incurred $69 million in the second quarter 2018 and $194 million in the second quarter 2017 of impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets. These costs are charged 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. Total restructuring charges for the six months ended June 30, 2018 and 2017 were comprised of the following: 2018 2017 Employee retention and severance Contracted economic development costs Total Employee retention and severance Contracted economic development costs Total (In Millions) Balance as of January 1, $83 $14 $97 $70 $21 $91 Restructuring costs accrued 60 — 60 66 — 66 Cash paid out — — — 100 — 100 Balance as of June 30, $143 $14 $157 $36 $21 $57 |
Risk Management And Fair Valu30
Risk Management And Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Values Of Derivative Instruments | The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of June 30, 2018 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $29 ($21) $8 Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $11 ($11) $— Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $34 ($21) $13 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $30 ($10) $20 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $2 ($2) $— Entergy Wholesale Commodities Natural gas swaps Prepayments and other $3 $— $3 Utility Financial transmission rights Prepayments and other $42 $1 $41 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities $2 ($2) $— Entergy Wholesale Commodities The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2017 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Business (In Millions) Derivatives designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $19 ($19) $— Entergy Wholesale Commodities Electricity swaps and options Other deferred debits and other assets (non-current portion) $19 ($14) $5 Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $86 ($20) $66 Entergy Wholesale Commodities Electricity swaps and options Other non-current liabilities (non-current portion) $17 ($14) $3 Entergy Wholesale Commodities Derivatives not designated as hedging instruments Assets: Electricity swaps and options Prepayments and other (current portion) $9 ($9) $— Entergy Wholesale Commodities Financial transmission rights Prepayments and other $22 ($1) $21 Utility and Entergy Wholesale Commodities Liabilities: Electricity swaps and options Other current liabilities (current portion) $9 ($8) $1 Entergy Wholesale Commodities Natural gas swaps Other current liabilities $6 $— $6 Utility (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheet (d) Excludes cash collateral in the amount of $5 million posted and $3 million held as of June 30, 2018 and $1 million posted and $4 million held as of December 31, 2017. Also excludes letters of credit in the amount of $1 million posted and $3 million held as of June 30, 2018 and $34 million in letters of credit held as of December 31, 2017. |
Derivative Instruments Designated As Cash Flow Hedges On Consolidated Statements Of Income | The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain (loss) recognized in other comprehensive income Income Statement location Amount of gain reclassified from accumulated other comprehensive income into income (a) (In Millions) (In Millions) 2018 Electricity swaps and options ($80) Competitive businesses operating revenues $3 2017 Electricity swaps and options $43 Competitive businesses operating revenues $13 (a) Before taxes of $1 million and $4 million for the three months ended June 30, 2018 and 2017, respectively The effects of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in other Income Statement location Amount of gain (loss) (In Millions) (In Millions) 2018 Electricity swaps and options $11 Competitive businesses operating revenues ($27) 2017 Electricity swaps and options $93 Competitive businesses operating revenues $64 (a) Before taxes of ($6) million and $22 million for the six months ended June 30, 2018 and 2017, respectively |
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income | The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Amount of loss recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $41 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($9) Financial transmission rights $— Purchased power expense (b) $44 Electricity swaps and options ($5) (c) Competitive business operating revenues $— The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Amount of gain recognized in accumulated other comprehensive income Income Statement Amount of gain (loss) (In Millions) (In Millions) 2018 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) $6 Financial transmission rights $— Purchased power expense (b) $73 Electricity swaps and options $— (c) Competitive business operating revenues $1 2017 Natural gas swaps $— Fuel, fuel-related expenses, and gas purchased for resale (a) ($16) Financial transmission rights $— Purchased power expense (b) $75 Electricity swaps and options $4 (c) Competitive business operating revenues $— (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. (c) Amount of gain recognized in accumulated other comprehensive income from electricity swaps and options de-designated as hedged items. |
Assets and liabilities at fair value on a recurring basis | The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 . The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect its placement within the fair value hierarchy levels. 2018 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $758 $— $— $758 Decommissioning trust funds (a): Equity securities 562 — — 562 Debt securities 1,064 1,556 — 2,620 Common trusts (b) 4,035 Power contracts — — 8 8 Securitization recovery trust account 40 — — 40 Escrow accounts 399 — — 399 Gas hedge contracts 3 — — 3 Financial transmission rights — — 41 41 $2,826 $1,556 $49 $8,466 Liabilities: Power contracts $— $— $33 $33 2017 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $725 $— $— $725 Decommissioning trust funds (a): Equity securities 526 — — 526 Debt securities 1,125 1,425 — 2,550 Common trusts (b) 4,136 Power contracts — — 5 5 Securitization recovery trust account 45 — — 45 Escrow accounts 406 — — 406 Financial transmission rights — — 21 21 $2,827 $1,425 $26 $8,414 Liabilities: Power contracts $— $— $70 $70 Gas hedge contracts 6 — — 6 $6 $— $70 $76 (a) The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 to the financial statements for additional information on the investment portfolios. (b) Common trust funds are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date. |
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy | The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2018 and 2017 : 2018 2017 Power Contracts Financial transmission rights Power Contracts Financial transmission rights (In Millions) Balance as of April 1, $75 $8 $5 $8 Total gains (losses) for the period (a) Included in earnings (15 ) — 4 — Included in other comprehensive income (80 ) — 43 — Included as a regulatory liability/asset — 28 — 31 Issuances of financial transmission rights — 46 — 62 Settlements (5 ) (41 ) (14 ) (44 ) Balance as of June 30, ($25 ) $41 $38 $57 (a) Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period is ($0.8) million for the three months ended June 30, 2018 and ($0.1) million for the three months ended June 30, 2017. The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2018 and 2017 : 2018 2017 Power Contracts Financial transmission rights Power Contracts Financial transmission rights (In Millions) Balance as of January 1, ($65 ) $21 $5 $21 Total gains (losses) for the period (a) Included in earnings (1 ) (1 ) 4 — Included in other comprehensive income 11 — 93 — Included as a regulatory liability/asset — 48 — 48 Issuances of financial transmission rights — 46 — 62 Settlements 30 (73 ) (64 ) (74 ) Balance as of June 30, ($25 ) $41 $38 $57 (a) Change in unrealized gains or losses for the period included in earnings for derivatives held at the end of the reporting period is ($0.7) million for the six months ended June 30, 2018 and $0.3 million for the six months ended June 30, 2017. |
Fair Value Inputs Liabilities Quantitative Information | The following table sets forth a description of the types of transactions classified as Level 3 in the fair value hierarchy and significant unobservable inputs to each which cause that classification as of June 30, 2018 : Transaction Type Fair Value as of June 30, 2018 Significant Unobservable Inputs Range from Average % Effect on Fair Value (In Millions) (In Millions) Power contracts - electricity swaps ($25) Unit contingent discount +/- 4% - 4.75% ($3) |
Entergy Arkansas [Member] | |
Fair Values Of Derivative Instruments | The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. |
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income | The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. |
Assets and liabilities at fair value on a recurring basis | Entergy Arkansas 2018 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $232.8 $— $— $232.8 Decommissioning trust funds (a): Equity securities $11.3 $— $— $11.3 Debt securities 89.1 252.6 — 341.7 Common trusts (b) 601.4 Securitization recovery trust account 4.1 — — 4.1 Financial transmission rights — — 10.5 10.5 $337.3 $252.6 $10.5 $1,201.8 2017 Level 1 Level 2 Level 3 Total (In Millions) Assets: Decommissioning trust funds (a): Equity securities $11.7 $— $— $11.7 Debt securities 115.8 232.4 — 348.2 Common trusts (b) 585.0 Securitization recovery trust account 3.7 — — 3.7 Escrow accounts 2.4 — — 2.4 Financial transmission rights — — 3.0 3.0 $133.6 $232.4 $3.0 $954.0 |
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy | The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2018 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2018 $1.8 $3.4 $0.9 $0.7 $1.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset (1.0 ) 20.6 8.8 3.8 (4.6 ) Settlements (2.1 ) (25.8 ) (9.8 ) (5.2 ) 1.8 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2017 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2017 $0.9 $4.1 $1.3 $0.5 $1.0 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains included as a regulatory liability/asset 9.0 7.5 6.7 3.1 4.3 Settlements (10.5 ) (14.3 ) (8.5 ) (3.4 ) (6.9 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2018 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2018 $3.0 $10.2 $2.1 $2.2 $3.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset 5.8 31.4 15.4 5.5 (10.1 ) Settlements (10.1 ) (43.4 ) (17.6 ) (8.4 ) 5.3 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2017 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2017 $5.4 $8.5 $3.2 $1.1 $3.1 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains (losses) included as a regulatory liability/asset 9.1 18.3 7.9 4.8 7.4 Settlements (15.1 ) (29.5 ) (11.6 ) (5.7 ) (12.1 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 |
Entergy Louisiana [Member] | |
Fair Values Of Derivative Instruments | The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. |
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income | The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. |
Assets and liabilities at fair value on a recurring basis | Entergy Louisiana 2018 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $28.8 $— $— $28.8 Decommissioning trust funds (a): Equity securities 18.1 — — 18.1 Debt securities 141.5 372.3 — 513.8 Common trusts (b) 803.0 Escrow accounts 286.7 — — 286.7 Securitization recovery trust account 3.4 — — 3.4 Gas hedge contracts 2.7 — — 2.7 Financial transmission rights — — 18.2 18.2 $481.2 $372.3 $18.2 $1,674.7 2017 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $30.1 $— $— $30.1 Decommissioning trust funds (a): Equity securities 15.2 — — 15.2 Debt securities 143.3 350.5 — 493.8 Common trusts (b) 803.1 Escrow accounts 289.5 — — 289.5 Securitization recovery trust account 2.0 — — 2.0 Financial transmission rights — — 10.2 10.2 $480.1 $350.5 $10.2 $1,643.9 Liabilities: Gas hedge contracts $5.0 $— $— $5.0 |
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy | The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2018 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2018 $1.8 $3.4 $0.9 $0.7 $1.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset (1.0 ) 20.6 8.8 3.8 (4.6 ) Settlements (2.1 ) (25.8 ) (9.8 ) (5.2 ) 1.8 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2017 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2017 $0.9 $4.1 $1.3 $0.5 $1.0 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains included as a regulatory liability/asset 9.0 7.5 6.7 3.1 4.3 Settlements (10.5 ) (14.3 ) (8.5 ) (3.4 ) (6.9 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2018 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2018 $3.0 $10.2 $2.1 $2.2 $3.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset 5.8 31.4 15.4 5.5 (10.1 ) Settlements (10.1 ) (43.4 ) (17.6 ) (8.4 ) 5.3 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2017 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2017 $5.4 $8.5 $3.2 $1.1 $3.1 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains (losses) included as a regulatory liability/asset 9.1 18.3 7.9 4.8 7.4 Settlements (15.1 ) (29.5 ) (11.6 ) (5.7 ) (12.1 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 |
Entergy Mississippi [Member] | |
Fair Values Of Derivative Instruments | The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. |
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income | The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. |
Assets and liabilities at fair value on a recurring basis | Entergy Mississippi 2018 Level 1 Level 2 Level 3 Total (In Millions) Assets: Escrow accounts $32.2 $— $— $32.2 Gas hedge contracts 0.5 — — 0.5 Financial transmission rights — — 4.4 4.4 $32.7 $— $4.4 $37.1 2017 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $4.5 $— $— $4.5 Escrow accounts 32.0 — — 32.0 Financial transmission rights — — 2.1 2.1 $36.5 $— $2.1 $38.6 Liabilities: Gas hedge contracts $1.2 $— $— $1.2 |
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy | The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2018 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2018 $1.8 $3.4 $0.9 $0.7 $1.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset (1.0 ) 20.6 8.8 3.8 (4.6 ) Settlements (2.1 ) (25.8 ) (9.8 ) (5.2 ) 1.8 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2017 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2017 $0.9 $4.1 $1.3 $0.5 $1.0 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains included as a regulatory liability/asset 9.0 7.5 6.7 3.1 4.3 Settlements (10.5 ) (14.3 ) (8.5 ) (3.4 ) (6.9 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2018 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2018 $3.0 $10.2 $2.1 $2.2 $3.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset 5.8 31.4 15.4 5.5 (10.1 ) Settlements (10.1 ) (43.4 ) (17.6 ) (8.4 ) 5.3 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2017 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2017 $5.4 $8.5 $3.2 $1.1 $3.1 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains (losses) included as a regulatory liability/asset 9.1 18.3 7.9 4.8 7.4 Settlements (15.1 ) (29.5 ) (11.6 ) (5.7 ) (12.1 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 |
Entergy New Orleans [Member] | |
Fair Values Of Derivative Instruments | The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. |
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income | The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. |
Assets and liabilities at fair value on a recurring basis | Entergy New Orleans 2018 Level 1 Level 2 Level 3 Total (In Millions) Assets: Securitization recovery trust account $1.5 $— $— $1.5 Escrow accounts 80.1 — — 80.1 Financial transmission rights — — 3.0 3.0 $81.6 $— $3.0 $84.6 2017 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $32.7 $— $— $32.7 Securitization recovery trust account 1.5 — — 1.5 Escrow accounts 81.9 — — 81.9 Financial transmission rights — — 2.2 2.2 $116.1 $— $2.2 $118.3 Liabilities: Gas hedge contracts $0.2 $— $— $0.2 |
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy | The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2018 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2018 $1.8 $3.4 $0.9 $0.7 $1.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset (1.0 ) 20.6 8.8 3.8 (4.6 ) Settlements (2.1 ) (25.8 ) (9.8 ) (5.2 ) 1.8 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2017 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2017 $0.9 $4.1 $1.3 $0.5 $1.0 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains included as a regulatory liability/asset 9.0 7.5 6.7 3.1 4.3 Settlements (10.5 ) (14.3 ) (8.5 ) (3.4 ) (6.9 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2018 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2018 $3.0 $10.2 $2.1 $2.2 $3.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset 5.8 31.4 15.4 5.5 (10.1 ) Settlements (10.1 ) (43.4 ) (17.6 ) (8.4 ) 5.3 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2017 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2017 $5.4 $8.5 $3.2 $1.1 $3.1 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains (losses) included as a regulatory liability/asset 9.1 18.3 7.9 4.8 7.4 Settlements (15.1 ) (29.5 ) (11.6 ) (5.7 ) (12.1 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 |
Entergy Texas [Member] | |
Fair Values Of Derivative Instruments | The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2018 are shown in the table below. Certain investments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with accounting guidance for derivatives and hedging. Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Natural gas swaps Prepayments and other $2.7 $— $2.7 Entergy Louisiana Natural gas swaps Prepayments and other $0.5 $— $0.5 Entergy Mississippi Financial transmission rights Prepayments and other $11.1 ($0.6) $10.5 Entergy Arkansas Financial transmission rights Prepayments and other $18.5 ($0.3) $18.2 Entergy Louisiana Financial transmission rights Prepayments and other $4.4 $— $4.4 Entergy Mississippi Financial transmission rights Prepayments and other $3.0 $— $3.0 Entergy New Orleans Financial transmission rights Prepayments and other $5.3 ($0.6) $4.7 Entergy Texas The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2017 are as follows: Instrument Balance Sheet Location Gross Fair Value (a) Offsetting Position (b) Net Fair Value (c) (d) Registrant (In Millions) Assets: Financial transmission rights Prepayments and other $3.2 ($0.2) $3.0 Entergy Arkansas Financial transmission rights Prepayments and other $11.0 ($0.8) $10.2 Entergy Louisiana Financial transmission rights Prepayments and other $2.1 $— $2.1 Entergy Mississippi Financial transmission rights Prepayments and other $2.2 $— $2.2 Entergy New Orleans Financial transmission rights Prepayments and other $3.6 ($0.2) $3.4 Entergy Texas Liabilities: Natural gas swaps Other current liabilities $5.0 $— $5.0 Entergy Louisiana Natural gas swaps Other current liabilities $1.2 $— $1.2 Entergy Mississippi Natural gas swaps Other current liabilities $0.2 $— $0.2 Entergy New Orleans (a) Represents the gross amounts of recognized assets/liabilities (b) Represents the netting of fair value balances with the same counterparty (c) Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets (d) As of June 30, 2018, letters of credit posted with MISO covered financial transmission rights exposure of $0.6 million for Entergy Arkansas and $0.2 million for Entergy Mississippi. As of December 31, 2017, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Arkansas, $0.1 million for Entergy Mississippi, and $0.05 million for Entergy Texas. |
Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income | The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.9 (a) Entergy Mississippi Financial transmission rights Purchased power expense $2.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $25.8 (b) Entergy Louisiana Financial transmission rights Purchased power expense $9.8 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.2 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($1.8) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($7.6) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($1.4) (a) Entergy Mississippi Financial transmission rights Purchased power expense $10.5 (b) Entergy Arkansas Financial transmission rights Purchased power expense $14.3 (b) Entergy Louisiana Financial transmission rights Purchased power expense $8.5 (b) Entergy Mississippi Financial transmission rights Purchased power expense $3.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense $6.9 (b) Entergy Texas The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2018 and 2017 are as follows: Instrument Income Statement Location Amount of gain Registrant (In Millions) 2018 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $4.9 (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale $0.7 (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $10.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $43.4 (b) Entergy Louisiana Financial transmission rights Purchased power expense $17.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $8.4 (b) Entergy New Orleans Financial transmission rights Purchased power expense ($5.3) (b) Entergy Texas 2017 Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($13.7) (a) Entergy Louisiana Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($2.5) (a) Entergy Mississippi Natural gas swaps Fuel, fuel-related expenses, and gas purchased for resale ($0.1) (a) Entergy New Orleans Financial transmission rights Purchased power expense $15.1 (b) Entergy Arkansas Financial transmission rights Purchased power expense $29.5 (b) Entergy Louisiana Financial transmission rights Purchased power expense $11.6 (b) Entergy Mississippi Financial transmission rights Purchased power expense $5.7 (b) Entergy New Orleans Financial transmission rights Purchased power expense $12.1 (b) Entergy Texas (a) Due to regulatory treatment, the natural gas swaps are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps are settled are recovered or refunded through fuel cost recovery mechanisms. (b) Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms. |
Assets and liabilities at fair value on a recurring basis | Entergy Texas 2018 Level 1 Level 2 Level 3 Total (In Millions) Assets : Temporary cash investments $40.4 $— $— $40.4 Securitization recovery trust account 31.2 — — 31.2 Financial transmission rights — — 4.7 4.7 $71.6 $— $4.7 $76.3 2017 Level 1 Level 2 Level 3 Total (In Millions) Assets : Temporary cash investments $115.5 $— $— $115.5 Securitization recovery trust account 37.7 — — 37.7 Financial transmission rights — — 3.4 3.4 $153.2 $— $3.4 $156.6 |
Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy | The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2018 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2018 $1.8 $3.4 $0.9 $0.7 $1.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset (1.0 ) 20.6 8.8 3.8 (4.6 ) Settlements (2.1 ) (25.8 ) (9.8 ) (5.2 ) 1.8 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2017 . Entergy Entergy Entergy Entergy Entergy (In Millions) Balance as of April 1, 2017 $0.9 $4.1 $1.3 $0.5 $1.0 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains included as a regulatory liability/asset 9.0 7.5 6.7 3.1 4.3 Settlements (10.5 ) (14.3 ) (8.5 ) (3.4 ) (6.9 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2018 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2018 $3.0 $10.2 $2.1 $2.2 $3.4 Issuances of financial transmission rights 11.8 20.0 4.5 3.7 6.1 Gains included as a regulatory liability/asset 5.8 31.4 15.4 5.5 (10.1 ) Settlements (10.1 ) (43.4 ) (17.6 ) (8.4 ) 5.3 Balance as of June 30, 2018 $10.5 $18.2 $4.4 $3.0 $4.7 The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2017 . Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Millions) Balance as of January 1, 2017 $5.4 $8.5 $3.2 $1.1 $3.1 Issuances of financial transmission rights 8.9 31.0 9.6 5.0 7.1 Gains (losses) included as a regulatory liability/asset 9.1 18.3 7.9 4.8 7.4 Settlements (15.1 ) (29.5 ) (11.6 ) (5.7 ) (12.1 ) Balance as of June 30, 2017 $8.3 $28.3 $9.1 $5.2 $5.5 |
System Energy [Member] | |
Assets and liabilities at fair value on a recurring basis | System Energy 2018 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $258.7 $— $— $258.7 Decommissioning trust funds (a): Equity securities 5.0 — — 5.0 Debt securities 178.7 145.5 — 324.2 Common trusts (b) 585.2 $442.4 $145.5 $— $1,173.1 2017 Level 1 Level 2 Level 3 Total (In Millions) Assets: Temporary cash investments $287.1 $— $— $287.1 Decommissioning trust funds (a): Equity securities 3.1 — — 3.1 Debt securities 187.2 143.3 — 330.5 Common trusts (b) 572.1 $477.4 $143.3 $— $1,192.8 |
Decommissioning Trust Funds (Ta
Decommissioning Trust Funds (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Securities Held | The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $2,620 $20 $53 2017 Equity Securities $4,662 $2,131 $1 Debt Securities 2,550 44 16 Total $7,212 $2,175 $17 |
Available For Sale Securities Continuous Unrealized Loss Position Fair Value | The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $1,624 $40 More than 12 months 229 13 Total $1,853 $53 The fair value and gross unrealized losses of available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $8 $1 $1,099 $7 More than 12 months — — 265 9 Total $8 $1 $1,364 $16 |
Fair Value Of Debt Securities By Contractual Maturities | The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $131 $74 1 year - 5 years 963 902 5 years - 10 years 693 812 10 years - 15 years 148 147 15 years - 20 years 105 100 20 years+ 580 515 Total $2,620 $2,550 |
Entergy Arkansas [Member] | |
Securities Held | The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $341.7 $0.4 $9.9 2017 Equity Securities $596.7 $354.9 $— Debt Securities 348.2 2.1 3.0 Total $944.9 $357.0 $3.0 |
Available For Sale Securities Continuous Unrealized Loss Position Fair Value | The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $266.6 $7.9 More than 12 months 34.4 2.0 Total $301.0 $9.9 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $168.0 $1.2 More than 12 months — — 41.4 1.8 Total $— $— $209.4 $3.0 |
Fair Value Of Debt Securities By Contractual Maturities | The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $13.0 1 year - 5 years 161.6 123.4 5 years - 10 years 115.4 180.6 10 years - 15 years 3.4 4.8 15 years - 20 years 5.9 3.4 20 years+ 25.9 23.0 Total $341.7 $348.2 |
Entergy Louisiana [Member] | |
Securities Held | The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $513.8 $4.7 $10.3 2017 Equity Securities $818.3 $461.2 $— Debt Securities 493.8 10.9 3.6 Total $1,312.1 $472.1 $3.6 |
Available For Sale Securities Continuous Unrealized Loss Position Fair Value | The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $287.6 $6.3 More than 12 months 75.5 4.0 Total $363.1 $10.3 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $135.3 $1.1 More than 12 months — — 84.4 2.5 Total $— $— $219.7 $3.6 |
Fair Value Of Debt Securities By Contractual Maturities | The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $29.5 $23.2 1 year - 5 years 140.5 122.8 5 years - 10 years 101.7 109.3 10 years - 15 years 53.7 52.7 15 years - 20 years 45.0 50.7 20 years+ 143.4 135.1 Total $513.8 $493.8 |
System Energy [Member] | |
Securities Held | The available-for-sale securities held as of June 30, 2018 and December 31, 2017 are summarized as follows: Fair Value Total Unrealized Gains Total Unrealized Losses (In Millions) 2018 Debt Securities $324.2 $1.6 $5.7 2017 Equity Securities $575.2 $308.6 $— Debt Securities 330.5 4.2 1.2 Total $905.7 $312.8 $1.2 |
Available For Sale Securities Continuous Unrealized Loss Position Fair Value | The fair value and gross unrealized losses of the available-for-sale debt securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of June 30, 2018 : Debt Securities Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $187.0 $5.1 More than 12 months 9.2 0.6 Total $196.2 $5.7 The fair value and gross unrealized losses of the available-for-sale securities, summarized by investment type and length of time that the securities have been in a continuous loss position, are as follows as of December 31, 2017 : Equity Securities Debt Securities Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses (In Millions) Less than 12 months $— $— $196.9 $1.0 More than 12 months — — 10.4 0.2 Total $— $— $207.3 $1.2 |
Fair Value Of Debt Securities By Contractual Maturities | The fair value of debt securities, summarized by contractual maturities, as of June 30, 2018 and December 31, 2017 are as follows: 2018 2017 (In Millions) less than 1 year $9.7 $4.1 1 year - 5 years 169.2 173.0 5 years - 10 years 71.6 78.5 10 years - 15 years 2.7 1.0 15 years - 20 years 11.3 6.9 20 years+ 59.7 67.0 Total $324.2 $330.5 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation of Revenue [Table Text Block] | Entergy’s total revenues for the three and six months ended June 30, 2018 were as follows: 2018 Three Months Ended Six Months Ended (In Thousands) Utility: Residential $768,710 $1,660,795 Commercial 581,899 1,177,620 Industrial 624,818 1,222,004 Governmental 56,823 113,301 Total billed retail 2,032,250 4,173,720 Sales for resale (a) 69,212 138,738 Other electric revenues (b) 219,391 246,822 Non-customer revenues (c) 9,372 19,206 Total electric revenues 2,330,225 4,578,486 Natural gas 29,943 86,638 Entergy Wholesale Commodities: Competitive businesses sales (a) 331,562 740,697 Non-customer revenues (c) (22,960 ) (13,171 ) Total competitive businesses 308,602 727,526 Total operating revenues $2,668,770 $5,392,650 |
Entergy Arkansas [Member] | |
Disaggregation of Revenue [Table Text Block] | The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 |
Entergy Louisiana [Member] | |
Disaggregation of Revenue [Table Text Block] | The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 |
Entergy Mississippi [Member] | |
Disaggregation of Revenue [Table Text Block] | The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 |
Entergy New Orleans [Member] | |
Disaggregation of Revenue [Table Text Block] | The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 |
Entergy Texas [Member] | |
Disaggregation of Revenue [Table Text Block] | The Registrant Subsidiaries’ total revenues for the three months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $159,130 $267,915 $132,730 $58,232 $150,703 Commercial 93,741 221,740 117,351 54,524 94,544 Industrial 97,973 368,678 46,129 9,267 102,771 Governmental 3,766 16,705 11,452 18,448 6,452 Total billed retail 354,610 875,038 307,662 140,471 354,470 Sales for resale (a) 53,195 111,801 11,776 6,190 25,177 Other electric revenues (b) 84,102 70,027 31,696 11,623 23,468 Non-customer revenues (c) 2,698 4,823 2,555 1,318 371 Total electric revenues 494,605 1,061,689 353,689 159,602 403,486 Natural gas — 11,099 — 18,844 — Total operating revenues $494,605 $1,072,788 $353,689 $178,446 $403,486 The Registrant Subsidiaries’ total revenues for the six months ended June 30, 2018 were as follows: 2018 Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas (In Thousands) Residential $394,654 $563,433 $281,073 $122,807 $298,828 Commercial 214,375 446,667 227,811 108,796 179,971 Industrial 209,450 721,014 88,629 16,838 186,073 Governmental 8,414 34,015 22,300 36,139 12,433 Total billed retail 826,893 1,765,129 619,813 284,580 677,305 Sales for resale (a) 119,299 201,056 13,769 19,527 48,538 Other electric revenues (b) 94,125 90,529 30,977 8,511 25,733 Non-customer revenues (c) 5,312 10,081 4,873 2,802 850 Total electric revenues 1,045,629 2,066,795 669,432 315,420 752,426 Natural gas — 35,337 — 51,301 — Total operating revenues $1,045,629 $2,102,132 $669,432 $366,721 $752,426 |
Rate And Regulatory Matters (Na
Rate And Regulatory Matters (Narrative) (Details) | 1 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
Aug. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Jun. 30, 2018USD ($) | May 31, 2018USD ($) | Apr. 30, 2018USD ($) | Mar. 31, 2018USD ($)$ / kWh | Jan. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 31, 2017 | Jan. 31, 2017 | Jul. 31, 2015USD ($) | Oct. 31, 2016USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | |
Regulatory Assets [Line Items] | ||||||||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 51,503,000 | $ 220,828,000 | ||||||||||||||
Deferred Fuel Cost | $ 114,293,000 | $ 95,746,000 | 114,293,000 | $ 95,746,000 | ||||||||||||
Entergy Louisiana [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Earned return on common equity | 10.79% | 9.06% | ||||||||||||||
Public Utilities, proposed customer credits | $ 700,000 | |||||||||||||||
Proposed prospective reduction in the gas infrastructure rider | $ 200,000 | |||||||||||||||
Authorized return on common equity | 9.95% | 9.95% | ||||||||||||||
Earned Return on Common Equity Resulting From Revenue-Neutral Realignments to Other Recovery Mechanisms | 8.16% | |||||||||||||||
Earnings bandwidth basis points | 16000.00% | |||||||||||||||
Reduced earnings bandwidth basis points | 8000.00% | |||||||||||||||
Public Utilities, Requested Increase in Revenue Requirement | $ 100,000 | |||||||||||||||
Monthly increase in regulatory liability related to Tax Act | $ 9,100,000 | |||||||||||||||
Regulatory liability related to Tax Act | $ 55,000,000 | 55,000,000 | ||||||||||||||
Target earned return on common equity | 9.80% | |||||||||||||||
Common equity basis point bandwidth | $ 60 | |||||||||||||||
Cap on potential revenue increase for 2018 rate case evaluation period | 35,000,000 | |||||||||||||||
Cap on potential revenue increase for 2018 and 2019 rate case evaluation periods | 70,000,000 | |||||||||||||||
Requirement for excess transmission project costs eligible for costs recovery mechanism | $ 100,000,000 | |||||||||||||||
Earned Return on Common Equity Excluding Realignments | 9.88% | |||||||||||||||
Rate Increase Included in Formula Rate Plan | $ 4,800,000 | |||||||||||||||
Formula rate plan increase excluding Tax Cuts and Jobs Act Credits | 98,000,000 | |||||||||||||||
Entergy Louisiana [Member] | Subsequent Event [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Reduction in Revenue Requirement | $ 3,500,000 | |||||||||||||||
Entergy Mississippi [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Authorized Storm Damage Reserve Balance | 15,000,000 | 15,000,000 | ||||||||||||||
Balance At Which Storm Damage Accrual Will Return To Current Level | 10,000,000 | |||||||||||||||
Deferred Fuel Cost | 25,912,000 | 32,444,000 | 25,912,000 | 32,444,000 | ||||||||||||
System Agreement Bandwidth Remedy Payments | 16,000,000 | |||||||||||||||
Monthly storm damage provision | 1,750,000 | |||||||||||||||
Offset of Unprotected Excess ADIT Against Net Utility Plant Approved in Stipulation | 127,200,000 | 127,200,000 | ||||||||||||||
Offset of Unprotected Excess ADIT Against Other Regulatory Assets Approved in Stipulation | 2,200,000 | 2,200,000 | ||||||||||||||
Proposed customer credits due to internal restructuring | $ 27,000,000 | |||||||||||||||
Preferred Stock, Redemption Amount | 21,200,000 | |||||||||||||||
Entergy Mississippi [Member] | Subsequent Event [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Monthly storm damage provision | $ 0 | |||||||||||||||
Entergy New Orleans [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Deferred Fuel Cost | 19,282,000 | 0 | 19,282,000 | 0 | ||||||||||||
System Agreement Bandwidth Remedy Payments | 5,000,000 | |||||||||||||||
Benefit to electric customers related to reduction in income tax expense under Tax Act | 8,200,000 | |||||||||||||||
Benefit to gas customers related to reduction in income tax expense under Tax Act | $ 1,300,000 | |||||||||||||||
Allocation of benefits resulting from Tax Cuts and Jobs Act to Energy Smart Programs | 13,500,000 | |||||||||||||||
Incremental costs related to one year acceleration of implementation of advanced metering infrastructure | 4,400,000 | |||||||||||||||
Estimated implementation costs for advanced metering infrastructure (AMI) | 79,400,000 | |||||||||||||||
Entergy New Orleans [Member] | Subsequent Event [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Reduction in Revenue Requirement | $ 20,000,000 | |||||||||||||||
Earned return on common equity | 10.75% | |||||||||||||||
Earnings bandwidth basis points | 10000.00% | |||||||||||||||
Proposed Reduction in Revenue Requirement for Electric Rates | $ 20,000,000 | |||||||||||||||
Proposed Reduction in Revenue Requirement for Gas Rates | $ 129,000 | |||||||||||||||
Entergy New Orleans [Member] | Subsequent Event [Member] | Minimum [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Earnings bandwidth basis points | 5000.00% | |||||||||||||||
Entergy New Orleans [Member] | Subsequent Event [Member] | Maximum [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Earnings bandwidth basis points | 5000.00% | |||||||||||||||
Entergy Texas [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
System Agreement Bandwidth Remedy Payments | $ 10,900,000 | $ 10,900,000 | 6,000,000 | |||||||||||||
Refund for fuel cost recovery | 30,500,000 | |||||||||||||||
Public Utilities, Requested Increase in Revenue Requirement | $ 118,000,000 | |||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | 166,000,000 | |||||||||||||||
Portion of requested increase in base rates associated with moving costs | 48,000,000 | |||||||||||||||
Portion of unprotected excess ADIT included in proposed rates | $ 202,000,000 | |||||||||||||||
Entergy Arkansas [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Deferred Fuel Cost | $ 69,099,000 | $ 63,302,000 | $ 69,099,000 | 63,302,000 | ||||||||||||
Rate At Which Electricity Sold To Retail Customers | $ / kWh | 0.01547 | |||||||||||||||
Increase in Rate At Which Electricity Sold To Retail Customers | $ / kWh | 0.01882 | |||||||||||||||
Projected Revenue Deficiency | $ 95,600,000 | |||||||||||||||
Entergy Arkansas [Member] | Subsequent Event [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Projected Revenue Deficiency | $ 73,400,000 | |||||||||||||||
Projected Increase in Revenue Requirement | $ 169,000,000 | |||||||||||||||
Annual revenue constraint per rate class percentage | 400.00% | |||||||||||||||
Reduced proposed increase in revenue requirement to comply with annual revenue constraint | $ 65,400,000 | |||||||||||||||
System Energy [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Earned return on common equity | 10.94% | |||||||||||||||
Percent Interest in Grand Gulf | 11.50% | 90.00% | ||||||||||||||
System Energy [Member] | Minimum [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Earned return on common equity | 8.37% | |||||||||||||||
System Energy [Member] | Maximum [Member] | ||||||||||||||||
Regulatory Assets [Line Items] | ||||||||||||||||
Earned return on common equity | 8.67% |
Rate And Regulatory Matters Sys
Rate And Regulatory Matters System Agreement Cost Equalization Payments (Receipts) Among Utility Operating Companies (Details) - USD ($) $ in Millions | 1 Months Ended | 4 Months Ended | 6 Months Ended |
Jul. 31, 2015 | Oct. 31, 2016 | Jun. 30, 2018 | |
Entergy Arkansas [Member] | |||
System Agreement Bandwidth Remedy Receipts | $ (4) | ||
Entergy Louisiana [Member] | |||
System Agreement Bandwidth Remedy Receipts | (23) | ||
Entergy Mississippi [Member] | |||
System Agreement Bandwidth Remedy Payments | 16 | ||
Entergy New Orleans [Member] | |||
System Agreement Bandwidth Remedy Payments | 5 | ||
Entergy Texas [Member] | |||
System Agreement Bandwidth Remedy Payments | $ 10.9 | $ 10.9 | $ 6 |
Rate And Regulatory Matters Rou
Rate And Regulatory Matters Rough Production Cost Equalization Payments (Receipts) Among Utility Operating Companies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Entergy Arkansas [Member] | |
Rough production cost equalization payments | $ 3 |
Entergy Louisiana [Member] | |
Rough production cost equalization payments | 3 |
Entergy Mississippi [Member] | |
Rough production cost equalization receipts | (1) |
Entergy New Orleans [Member] | |
Rough production cost equalization payments | 1 |
Entergy Texas [Member] | |
Rough production cost equalization receipts | $ (5) |
Equity (Narrative) (Details)
Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 27, 2018 | Jun. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | |
Equity [Abstract] | |||||||||
Stock Options Excluded From Diluted Common Shares Outstanding Calculation | 1,100,000 | 2,500,000 | 1,100,000 | 3,700,000 | |||||
Forward Contract Indexed to Issuer's Equity, Indexed Shares | 15,300,000 | 15,300,000 | 15,300,000 | ||||||
Forward Contract Indexed to Issuer's Equity, Shares | 1,200,000 | ||||||||
Forward Contract Indexed to Issuer's Equity, Forward Rate Per Share | $ 74.45 | ||||||||
Shares, Issued | 323,364 | 323,364 | 323,364 | ||||||
Common stock dividend (in dollars per share) | $ 0.89 | $ 0.87 | $ 1.78 | $ 1.74 | |||||
Accumulated Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax | $ 632,617 | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | [1] | $ 56,360 | |||||||
Tax Cuts and Jobs Act, Reclassification from AOCI resulting from stranded tax effects | $ 15,500 | $ 15,505 | |||||||
Tax Cuts and Jobs Act, Portion Reclassified from AOCI to Retained Earnings | 32,000 | ||||||||
Tax Cuts and Jobs Act, Portion Reclassified from AOCI to Regulatory Liability for Income Taxes | $ 16,500 | ||||||||
Subsequent Event [Member] | |||||||||
Equity [Abstract] | |||||||||
Common stock dividend (in dollars per share) | $ 0.89 | ||||||||
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |
Equity (Schedule Of Earnings Pe
Equity (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Incremental Weighted Average Shares Attributable to Dilutive Effect [Abstract] | ||||
Stock options, Shares | 300,000 | 200,000 | 300,000 | 200,000 |
Stock options $/share | $ 0 | $ 0 | $ 0 | $ 0 |
Restricted stock, Shares | 500,000 | 400,000 | ||
Restricted stock $/share | $ (0.01) | $ (0.01) | $ 0 | $ 0 |
Incremental Common Shares Attributable to Dilutive Effect of Equity Forward Agreements | 1,200,000 | 0 | 600,000 | 0 |
Average Dilutive Effect Of Equity Forwards | $ (0.01) | $ 0 | $ (0.01) | $ 0 |
Basic earnings per share | ||||
Net income (loss) attributable to Entergy Corporation, Income | $ 245,421 | $ 409,922 | $ 378,181 | $ 492,528 |
Net Income Attributable to Entergy Corporation, Shares | 180,823,203 | 179,475,346 | 180,765,708 | 179,405,592 |
Net Income Attributable to Entergy Corporation, $/share | $ 1.36 | $ 2.28 | $ 2.09 | $ 2.75 |
Diluted earnings per share, Shares | 182,982,630 | 180,234,694 | 182,208,328 | 180,032,233 |
Diluted earnings per share $/share | $ 1.34 | $ 2.27 | $ 2.08 | $ 2.74 |
Equity (Accumulated Other Compr
Equity (Accumulated Other Comprehensive Income (Loss))(Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax | $ (632,617) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | $ (613,642) | $ (561,498) | $ 52,773 | $ (613,642) | $ 52,773 | $ (23,531) | $ 10,960 | $ (34,971) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (70,490) | 61,179 | (35,200) | 133,659 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 18,346 | (19,366) | 62,201 | (45,915) | ||||||
Other comprehensive income (loss) | (52,144) | 41,813 | 27,001 | 87,744 | ||||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | [1] | (16,538) | ||||||||
Tax Cuts and Jobs Act, Reclassification from AOCI resulting from stranded tax effects | 15,500 | 15,505 | ||||||||
Restatement Adjustment [Member] | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | (656,148) | |||||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | 0 | 0 | 748 | 748 | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (748) | (748) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | ||||||||
Other comprehensive income (loss) | (748) | (748) | ||||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax | (632,617) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | (8,842) | (6,201) | 479,257 | (8,842) | 479,257 | 545,045 | 467,561 | 429,734 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (7,509) | 33,870 | (43,785) | 73,742 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 4,868 | (22,174) | 8,288 | (24,219) | ||||||
Other comprehensive income (loss) | (2,641) | 11,696 | (35,497) | 49,523 | ||||||
Tax Cuts and Jobs Act, Reclassification from AOCI resulting from stranded tax effects | 114,227 | |||||||||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Restatement Adjustment [Member] | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | (87,572) | |||||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | (589,926) | (605,491) | (449,898) | (589,926) | (449,898) | (531,099) | (460,814) | (469,446) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 | 0 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 15,565 | 10,916 | 32,139 | 19,548 | ||||||
Other comprehensive income (loss) | 15,565 | 10,916 | 32,139 | 19,548 | ||||||
Tax Cuts and Jobs Act, Reclassification from AOCI resulting from stranded tax effects | (90,966) | |||||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Restatement Adjustment [Member] | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | (531,099) | |||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax | 0 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | (14,874) | 50,194 | 23,414 | (14,874) | 23,414 | (37,477) | 3,465 | 3,993 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (62,981) | 28,057 | 8,585 | 60,665 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (2,087) | (8,108) | 21,774 | (41,244) | ||||||
Other comprehensive income (loss) | (65,068) | 19,949 | 30,359 | 19,421 | ||||||
Tax Cuts and Jobs Act, Reclassification from AOCI resulting from stranded tax effects | (7,756) | |||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Restatement Adjustment [Member] | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | $ (37,477) | |||||||||
Entergy Louisiana [Member] | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | (57,451) | (57,451) | (46,400) | |||||||
Other comprehensive income (loss) | (501) | (310) | (1,002) | (680) | ||||||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | (3,787) | |||||||||
Entergy Louisiana [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accumulated other comprehensive loss | (57,451) | $ (56,950) | (49,122) | (57,451) | (49,122) | $ (46,400) | $ (48,812) | $ (48,442) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (501) | (310) | (1,002) | (680) | ||||||
Other comprehensive income (loss) | $ (501) | $ (310) | (1,002) | (680) | ||||||
Tax Cuts and Jobs Act, Reclassification from AOCI resulting from stranded tax effects | $ (10,049) | $ 0 | ||||||||
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |
Equity (Reclassification out of
Equity (Reclassification out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Competitive Energy Revenue | $ 308,602 | $ 317,255 | $ 727,526 | $ 870,622 | ||
Other Nonoperating Income (Expense) | (48,491) | (32,202) | (79,849) | (47,391) | ||
INCOME (LOSS) BEFORE INCOME TAXES | (31,736) | 76,256 | 148,126 | 170,070 | ||
Income taxes (benefits) | 280,596 | 337,112 | 236,933 | 329,350 | ||
Consolidated net income | 248,860 | 413,368 | 385,059 | [1] | 499,420 | [1] |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Consolidated net income | (18,346) | 19,366 | (62,201) | 45,915 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Consolidated net income | (4,868) | 22,174 | (8,288) | 24,219 | ||
Parent Company [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Competitive Energy Revenue | 2,735 | 12,695 | (27,347) | 63,922 | ||
Other Nonoperating Income (Expense) | (93) | (219) | (215) | (469) | ||
INCOME (LOSS) BEFORE INCOME TAXES | 2,642 | 12,476 | (27,562) | 63,453 | ||
Income taxes (benefits) | (555) | (4,368) | 5,788 | (22,209) | ||
Consolidated net income | 2,087 | 8,108 | (21,774) | 41,244 | ||
Parent Company [Member] | Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Realized gain (loss) | (7,702) | 43,479 | (13,114) | 47,489 | ||
Income taxes (benefits) | 2,834 | (21,305) | 4,826 | (23,270) | ||
Parent Company [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of prior-service credit | 5,424 | 6,564 | 10,850 | 13,126 | ||
Amortization of loss | (24,808) | (21,554) | (49,760) | (43,125) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (406) | (1,765) | (2,022) | (1,765) | ||
INCOME (LOSS) BEFORE INCOME TAXES | (19,790) | (16,755) | (40,932) | (31,764) | ||
Income taxes (benefits) | 4,225 | 5,839 | 8,793 | 12,216 | ||
Consolidated net income | (15,565) | (10,916) | (32,139) | (19,548) | ||
Entergy Louisiana [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other Nonoperating Income (Expense) | (22,770) | (8,889) | (30,435) | (18,031) | ||
INCOME (LOSS) BEFORE INCOME TAXES | 129,236 | 181,215 | 262,578 | 318,518 | ||
Income taxes (benefits) | 55,122 | (56,736) | 33,374 | (99,661) | ||
Consolidated net income | 184,358 | 124,479 | 295,952 | 218,857 | ||
Entergy Louisiana [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Amortization of prior-service credit | 1,934 | 1,934 | 3,868 | 3,868 | ||
Amortization of loss | (1,256) | (1,332) | (2,513) | (2,664) | ||
INCOME (LOSS) BEFORE INCOME TAXES | 678 | 602 | 1,355 | 1,204 | ||
Income taxes (benefits) | (177) | (292) | (353) | (524) | ||
Consolidated net income | $ 501 | $ 310 | $ 1,002 | $ 680 | ||
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |
Revolving Credit Facilities, 40
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
May 31, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Amount of Facility | $ 3,500,000 | |||
Amount of total borrowing capacity against which fronting commitments exist | $ 20,000 | |||
Line of credit facility, commitment fee percentage | 0.225% | |||
Amount Drawn/ Outstanding | $ 390,000 | |||
Commercial Paper program limit | 2,000,000 | |||
Commercial Paper Amount Outstanding | $ 1,945,000 | |||
Commercial Paper Program [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, weighted average interest rate | 2.31% | |||
Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, weighted average interest rate | 3.34% | |||
Entergy Arkansas [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | $ 0 | $ 49,974 | ||
Authorized Short Term Borrowings | 250,000 | |||
Amount of total borrowing capacity against which fronting commitments exist | 5,000 | |||
Letters of Credit Outstanding, Amount | 600 | 200 | ||
Entergy Arkansas [Member] | Mortgage Bonds Four Point Zero Percent Series Due June 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance Of Debt | $ 250,000 | |||
Debt instrument, interest rate, stated percentage | 4.00% | |||
Entergy Arkansas [Member] | Preferred Stock 4.72% Series [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption of debt instrument | $ 9,400 | |||
Debt instrument, interest rate, stated percentage | 4.72% | |||
Entergy Arkansas [Member] | Preferred Stock 4.32% Series [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption of debt instrument | $ 7,000 | |||
Debt instrument, interest rate, stated percentage | 4.32% | |||
Entergy Arkansas [Member] | Preferred Stock 4.56% Series [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption of debt instrument | $ 15,000 | |||
Debt instrument, interest rate, stated percentage | 4.56% | |||
Entergy Louisiana [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | 0 | 43,540 | ||
Authorized Short Term Borrowings | 450,000 | |||
Amount of total borrowing capacity against which fronting commitments exist | 15,000 | |||
Entergy Louisiana [Member] | Mortgage Bonds, Four Point Zero Zero Percent due March Twenty Thirty Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance Of Debt | $ 750,000 | |||
Debt instrument, interest rate, stated percentage | 4.00% | |||
Entergy Louisiana [Member] | Mortgage Bonds Six Point Zero Percent Series Due May Twenty Eighteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption of debt instrument | $ 375,000 | |||
Debt instrument, interest rate, stated percentage | 6.00% | |||
Entergy Mississippi [Member] | ||||
Debt Instrument [Line Items] | ||||
Authorized Short Term Borrowings | 175,000 | |||
Letters of Credit Outstanding, Amount | 200 | 100 | ||
Entergy Texas [Member] | ||||
Debt Instrument [Line Items] | ||||
Authorized Short Term Borrowings | 200,000 | |||
Amount of total borrowing capacity against which fronting commitments exist | 30,000 | |||
Letters of Credit Outstanding, Amount | 50 | |||
System Energy [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term borrowings | 38,873 | $ 17,830 | ||
Authorized Short Term Borrowings | 200,000 | |||
Entergy Nuclear Vermont Yankee [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of Facility | $ 145,000 | |||
Line of credit facility, commitment fee percentage | 0.20% | |||
Amount Drawn/ Outstanding | $ 108,000 | |||
Line of Credit Facility, Interest Rate During Period | 3.26% | |||
Entergy New Orleans [Member] | ||||
Debt Instrument [Line Items] | ||||
Authorized Short Term Borrowings | $ 150,000 | |||
Amount of total borrowing capacity against which fronting commitments exist | 10,000 | |||
System Energy VIE [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount Drawn/ Outstanding | $ 38,900 | |||
Line of credit facility commitment fee as a percentage of undrawn commitment amount | 0.10% | |||
System Energy VIE [Member] | Three Point Seven Eight Percent Series I Notes Due October Two Thousand Eighteen [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.78% | |||
System Energy VIE [Member] | Three Point Four Two Percent Series J Notes Due April Two Thousand Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Issuance Of Debt | $ 100,000 | |||
Debt instrument, interest rate, stated percentage | 3.42% | 3.42% | ||
Entergy Arkansas VIE [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount Drawn/ Outstanding | $ 41,700 | |||
Line of credit facility commitment fee as a percentage of undrawn commitment amount | 0.10% | |||
Entergy Arkansas VIE [Member] | Three Point Six Five Percent Series L Notes Due July Two Thousand Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.65% | |||
Entergy Louisiana Waterford VIE [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount Drawn/ Outstanding | $ 45,400 | |||
Line of credit facility commitment fee as a percentage of undrawn commitment amount | 0.10% | |||
Entergy Louisiana Waterford VIE [Member] | Three Point Nine Two Percent Series H Dues February Two Thousand Twenty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.92% | |||
Entergy Louisiana River Bend VIE [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount Drawn/ Outstanding | $ 44,800 | |||
Line of credit facility commitment fee as a percentage of undrawn commitment amount | 0.10% | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, commitment fee percentage | 0.275% | |||
Consolidated debt ratio | 0.65 | |||
Maximum [Member] | Entergy Arkansas [Member] | ||||
Debt Instrument [Line Items] | ||||
Consolidated debt ratio | 0.65 | |||
Consolidated debt ratio of total capitalization | 70.00% | |||
Maximum [Member] | Entergy Louisiana [Member] | ||||
Debt Instrument [Line Items] | ||||
Consolidated debt ratio | 0.65 | |||
Consolidated debt ratio of total capitalization | 70.00% | |||
Maximum [Member] | Entergy Mississippi [Member] | ||||
Debt Instrument [Line Items] | ||||
Consolidated debt ratio | 0.65 | |||
Maximum [Member] | Entergy Texas [Member] | ||||
Debt Instrument [Line Items] | ||||
Consolidated debt ratio | 0.65 | |||
Maximum [Member] | System Energy [Member] | ||||
Debt Instrument [Line Items] | ||||
Consolidated debt ratio of total capitalization | 70.00% | |||
Maximum [Member] | Entergy New Orleans [Member] | ||||
Debt Instrument [Line Items] | ||||
Consolidated debt ratio | 0.65 | |||
Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, commitment fee percentage | 0.075% | |||
Credit Facility Of Three Hundred Fifty Million [Member] | Entergy Louisiana [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of Facility | $ 350,000 | $ 350,000 | ||
Letters of Credit Outstanding, Amount | 9,100 | |||
Amount Drawn/ Outstanding | $ 0 | |||
Line of Credit Facility, Interest Rate During Period | 3.34% | |||
Credit Facility Of One Hundred And Fifty Million [Member] | Entergy Arkansas [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of Facility | $ 150,000 | |||
Letters of Credit Outstanding, Amount | 0 | |||
Amount Drawn/ Outstanding | $ 0 | |||
Line of Credit Facility, Interest Rate During Period | 3.34% | |||
Credit Facility Of One Hundred And Fifty Million [Member] | Entergy Texas [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount of Facility | $ 150,000 | |||
Letters of Credit Outstanding, Amount | 24,400 | |||
Amount Drawn/ Outstanding | $ 0 | |||
Line of Credit Facility, Interest Rate During Period | 3.59% |
Revolving Credit Facilities, 41
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Summary Of The Borrowings Outstanding And Capacity Available Under The Facility) (Details) $ in Millions | Jun. 30, 2018USD ($) |
Summary of the borrowings outstanding and capacity available under the facility | |
Capacity | $ 3,500 |
Amount Drawn/ Outstanding | 390 |
Letters of Credit | 6 |
Capacity Available | $ 3,104 |
Revolving Credit Facilities, 42
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Credit Facilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Amount of total borrowing capacity against which fronting commitments exist | $ 20,000 | ||
Amount of Facility | 3,500,000 | ||
Amount Drawn/ Outstanding | 390,000 | ||
Entergy Arkansas [Member] | |||
Amount of total borrowing capacity against which fronting commitments exist | 5,000 | ||
Letters of Credit Outstanding, Amount | $ 600 | $ 200 | |
Entergy Arkansas [Member] | Credit Facility Of One Hundred And Fifty Million [Member] | |||
Expiration Date | Aug. 14, 2022 | ||
Amount of Facility | $ 150,000 | ||
Interest Rate | 3.34% | ||
Amount Drawn/ Outstanding | $ 0 | ||
Letters of Credit Outstanding, Amount | $ 0 | ||
Entergy Arkansas [Member] | Credit Facility Of Twenty Million [Member] | |||
Expiration Date | Apr. 30, 2019 | ||
Amount of Facility | $ 20,000 | ||
Interest Rate | 3.34% | ||
Amount Drawn/ Outstanding | $ 0 | ||
Letters of Credit Outstanding, Amount | 0 | ||
Entergy Louisiana [Member] | |||
Amount of total borrowing capacity against which fronting commitments exist | $ 15,000 | ||
Entergy Louisiana [Member] | Credit Facility Of Three Hundred Fifty Million [Member] | |||
Expiration Date | Aug. 14, 2022 | ||
Amount of Facility | $ 350,000 | $ 350,000 | |
Interest Rate | 3.34% | ||
Amount Drawn/ Outstanding | $ 0 | ||
Letters of Credit Outstanding, Amount | 9,100 | ||
Entergy Mississippi [Member] | |||
Letters of Credit Outstanding, Amount | $ 200 | 100 | |
Entergy Mississippi [Member] | Credit Facility Of Thirty Seven Point Five Million [Member] | |||
Expiration Date | May 31, 2019 | ||
Amount of Facility | $ 37,500 | ||
Interest Rate | 3.59% | ||
Amount Drawn/ Outstanding | $ 0 | ||
Letters of Credit Outstanding, Amount | $ 0 | ||
Entergy Mississippi [Member] | Credit Facility Of Thirty Five Million [Member] | |||
Expiration Date | May 31, 2019 | ||
Amount of Facility | $ 35,000 | ||
Interest Rate | 3.59% | ||
Amount Drawn/ Outstanding | $ 0 | ||
Letters of Credit Outstanding, Amount | $ 0 | ||
Entergy Mississippi [Member] | Credit Facility Of Ten Million [Member] | |||
Expiration Date | May 31, 2019 | ||
Amount of Facility | $ 10,000 | ||
Interest Rate | 3.59% | ||
Amount Drawn/ Outstanding | $ 0 | ||
Letters of Credit Outstanding, Amount | 0 | ||
Entergy New Orleans [Member] | |||
Amount of total borrowing capacity against which fronting commitments exist | $ 10,000 | ||
Entergy New Orleans [Member] | Credit Facility Of Twenty Five Million [Member] | |||
Expiration Date | Nov. 20, 2018 | ||
Amount of Facility | $ 25,000 | ||
Interest Rate | 3.57% | ||
Amount Drawn/ Outstanding | $ 0 | ||
Letters of Credit Outstanding, Amount | 800 | ||
Entergy Texas [Member] | |||
Amount of total borrowing capacity against which fronting commitments exist | $ 30,000 | ||
Letters of Credit Outstanding, Amount | $ 50 | ||
Entergy Texas [Member] | Credit Facility Of One Hundred And Fifty Million [Member] | |||
Expiration Date | Aug. 14, 2022 | ||
Amount of Facility | $ 150,000 | ||
Interest Rate | 3.59% | ||
Amount Drawn/ Outstanding | $ 0 | ||
Letters of Credit Outstanding, Amount | $ 24,400 |
Revolving Credit Facilities, 43
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Short-Term Borrowings And The Outstanding Short-Term Borrowings) (Details) $ in Millions | Jun. 30, 2018USD ($) |
Entergy Arkansas [Member] | |
Short-term borrowings and the outstanding short-term borrowings | |
Authorized | $ 250 |
Borrowings | 0 |
Entergy Louisiana [Member] | |
Short-term borrowings and the outstanding short-term borrowings | |
Authorized | 450 |
Borrowings | 0 |
Entergy Mississippi [Member] | |
Short-term borrowings and the outstanding short-term borrowings | |
Authorized | 175 |
Borrowings | 63 |
Entergy New Orleans [Member] | |
Short-term borrowings and the outstanding short-term borrowings | |
Authorized | 150 |
Borrowings | 23 |
Entergy Texas [Member] | |
Short-term borrowings and the outstanding short-term borrowings | |
Authorized | 200 |
Borrowings | 0 |
System Energy [Member] | |
Short-term borrowings and the outstanding short-term borrowings | |
Authorized | 200 |
Borrowings | $ 0 |
Revolving Credit Facilities, 44
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Issuance Of Commercial Paper To Finance Acquisition And Ownership Of Nuclear Fuel) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Issuance of commercial paper to finance the acquisition and ownership of nuclear fuel | |
Amount Drawn/ Outstanding | $ 390 |
Entergy Arkansas VIE [Member] | |
Issuance of commercial paper to finance the acquisition and ownership of nuclear fuel | |
Expiration Date | May 16, 2019 |
Amount of Facility | $ 80 |
Weighted Average Interest Rate on Borrowings | 3.08% |
Amount Drawn/ Outstanding | $ 41.7 |
Line of credit facility commitment fee as a percentage of undrawn commitment amount | 0.10% |
System Energy VIE [Member] | |
Issuance of commercial paper to finance the acquisition and ownership of nuclear fuel | |
Expiration Date | May 16, 2019 |
Amount of Facility | $ 120 |
Weighted Average Interest Rate on Borrowings | 3.79% |
Amount Drawn/ Outstanding | $ 38.9 |
Line of credit facility commitment fee as a percentage of undrawn commitment amount | 0.10% |
Entergy Louisiana River Bend VIE [Member] | |
Issuance of commercial paper to finance the acquisition and ownership of nuclear fuel | |
Expiration Date | May 16, 2019 |
Amount of Facility | $ 105 |
Weighted Average Interest Rate on Borrowings | 3.09% |
Amount Drawn/ Outstanding | $ 44.8 |
Line of credit facility commitment fee as a percentage of undrawn commitment amount | 0.10% |
Entergy Louisiana Waterford VIE [Member] | |
Issuance of commercial paper to finance the acquisition and ownership of nuclear fuel | |
Expiration Date | May 16, 2019 |
Amount of Facility | $ 85 |
Weighted Average Interest Rate on Borrowings | 3.07% |
Amount Drawn/ Outstanding | $ 45.4 |
Line of credit facility commitment fee as a percentage of undrawn commitment amount | 0.10% |
Revolving Credit Facilities, 45
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Notes Payable By Variable Interest Entities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Mar. 31, 2018 |
Three Point Six Five Percent Series L Notes Due July Two Thousand Twenty One [Member] | Entergy Arkansas VIE [Member] | ||
Notes payable by variable interest entities | ||
Stated interest rate (percentage) | 3.65% | |
Amount | $ 90 | |
Three Point One Seven Percent Series M Notes Due December Two Thousand Twenty Three [Member] | Entergy Arkansas VIE [Member] | ||
Notes payable by variable interest entities | ||
Stated interest rate (percentage) | 3.17% | |
Amount | $ 40 | |
Three Point Three Eight Percent Series R Notes Due August Two Thousand Twenty [Member] | Entergy Louisiana River Bend VIE [Member] | ||
Notes payable by variable interest entities | ||
Stated interest rate (percentage) | 3.38% | |
Amount | $ 70 | |
Three Point Nine Two Percent Series H Dues February Two Thousand Twenty One [Member] | Entergy Louisiana Waterford VIE [Member] | ||
Notes payable by variable interest entities | ||
Stated interest rate (percentage) | 3.92% | |
Amount | $ 40 | |
Three Point Two Two Percent Series I Notes Due December Two Thousand Twenty Three [Domain] | Entergy Louisiana Waterford VIE [Member] | ||
Notes payable by variable interest entities | ||
Stated interest rate (percentage) | 3.22% | |
Amount | $ 20 | |
Three Point Seven Eight Percent Series I Notes Due October Two Thousand Eighteen [Member] | System Energy VIE [Member] | ||
Notes payable by variable interest entities | ||
Stated interest rate (percentage) | 3.78% | |
Amount | $ 85 | |
Three Point Four Two Percent Series J Notes Due April Two Thousand Twenty One [Member] | System Energy VIE [Member] | ||
Notes payable by variable interest entities | ||
Stated interest rate (percentage) | 3.42% | 3.42% |
Amount | $ 100 |
Revolving Credit Facilities, 46
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Book Value And The Fair Value Of Long-Term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Long-term Debt, Fair Value | $ 15,521,205 | $ 15,367,453 |
Long-term Debt, Book Value | 15,874,594 | 15,075,266 |
Entergy Arkansas [Member] | ||
Long-term Debt, Fair Value | 2,991,503 | 2,865,844 |
Long-term Debt, Book Value | 3,212,424 | 2,952,399 |
Long term DOE obligations | 185,000 | 183,000 |
Entergy Louisiana [Member] | ||
Long-term Debt, Fair Value | 6,406,225 | 6,389,774 |
Long-term Debt, Book Value | 6,491,723 | 6,144,071 |
Entergy Mississippi [Member] | ||
Long-term Debt, Fair Value | 1,240,643 | 1,285,741 |
Long-term Debt, Book Value | 1,270,559 | 1,270,122 |
Entergy New Orleans [Member] | ||
Long-term Debt, Fair Value | 441,342 | 455,968 |
Long-term Debt, Book Value | 431,795 | 436,870 |
Entergy Texas [Member] | ||
Long-term Debt, Fair Value | 1,581,882 | 1,661,902 |
Long-term Debt, Book Value | 1,548,180 | 1,587,150 |
System Energy [Member] | ||
Long-term Debt, Fair Value | 571,461 | 529,119 |
Long-term Debt, Book Value | 601,662 | 551,488 |
Capital Lease Obligations | $ 34,000 | $ 34,000 |
Revolving Credit Facilities, 47
Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt Revolving Credit Facilities, Lines Of Credit, Short-Term Borrowings, And Long-Term Debt (Uncommitted Standby Letter of Credit Facilities to Support MISO Obligations) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Entergy Arkansas [Member] | ||
Letters of Credit Outstanding, Amount | $ 600 | $ 200 |
Entergy Mississippi [Member] | ||
Letters of Credit Outstanding, Amount | 200 | 100 |
Entergy Texas [Member] | ||
Letters of Credit Outstanding, Amount | $ 50 | |
Credit Facility Of Twenty Five Million [Member] | Entergy Arkansas [Member] | ||
Uncommitted Credit Facility | $ 25,000 | |
Letter of Credit Fee, Percentage | 0.70% | |
Letters of Credit Outstanding, Amount | $ 1,000 | |
Credit Facility of Fifty Million [Member] | Entergy Texas [Member] | ||
Uncommitted Credit Facility | $ 50,000 | |
Letter of Credit Fee, Percentage | 0.70% | |
Letters of Credit Outstanding, Amount | $ 12,500 | |
Credit Facility of Forty Million [Member] | Entergy Mississippi [Member] | ||
Uncommitted Credit Facility | $ 40,000 | |
Letter of Credit Fee, Percentage | 0.70% | |
Letters of Credit Outstanding, Amount | $ 20,200 | |
Credit Facility of Fifteen Million [Member] | Entergy New Orleans [Member] | ||
Uncommitted Credit Facility | $ 15,000 | |
Letter of Credit Fee, Percentage | 1.00% | |
Letters of Credit Outstanding, Amount | $ 7,400 | |
Credit Facility Of One Hundred Twenty Five Million [Member] | Entergy Louisiana [Member] | ||
Uncommitted Credit Facility | $ 125,000 | |
Letter of Credit Fee, Percentage | 0.70% | |
Letters of Credit Outstanding, Amount | $ 37,800 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 25, 2018 | Jun. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option granted (in shares) | 687,400 | |
Weighted-average grant-date fair value of options granted (in dollars per share) | $ 6.99 | |
Stock options outstanding | 4,370,733 | |
Weighted-average exercise price of stock options outstanding (in dollars per share) | $ 74.40 | |
Intrinsic value in the money stock options | $ 27.9 | |
Vesting period of awards under Entergy's plans, years | 3 years | |
Restricted Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of awards under Entergy's plans, years | 3 years | |
Restricted Awards [Member] | Equity Ownership And Long Term Cash Incentive Plan Two Thousand Fifteen [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock awards granted | 333,850 | |
Restricted stock awards granted value (in dollars per share) | $ 78.08 | |
Long Term Incentive Plan [Member] | Equity Ownership And Long Term Cash Incentive Plan Two Thousand Fifteen [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Long-term incentive plan awards | 182,408 | |
LTIP awards granted value (in dollars per share) | $ 86.75 | |
LTIP awards granted value based on stock price (in dollars per share) | $ 78.08 |
Stock-Based Compensation (Finan
Stock-Based Compensation (Financial Information For Stock Options) (Details) - Employee Stock Option [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee service share-based compensation, aggregate disclosures | ||||
Compensation expense included in Entergy's net income | $ 1.1 | $ 1.1 | $ 2.2 | $ 2.2 |
Tax benefit recognized in Entergy's net income | 0.3 | 0.4 | 0.6 | 0.8 |
Compensation cost capitalized as part of fixed assets and inventory | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.4 |
Stock-Based Compensation (Fin50
Stock-Based Compensation (Financial Information For Other Equity Plans) (Details) - Other Equity Awards [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee service share-based compensation, aggregate disclosures | ||||
Compensation expense included in Entergy's net income | $ 8.7 | $ 8.2 | $ 17.5 | $ 16.4 |
Tax benefit recognized in Entergy's net income | 2.2 | 3.2 | 4.4 | 6.3 |
Compensation cost capitalized as part of fixed assets and inventory | $ 2.5 | $ 2.2 | $ 4.8 | $ 4.2 |
Retirement And Other Postreti51
Retirement And Other Postretirement Benefits (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ 25,000 | $ 46,000 | $ 108,000 | $ 71,000 | $ 148,000 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 159,700 | |||||||
Entergy Arkansas [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 3,600 | 6,400 | 13,700 | 13,400 | 30,700 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 29,453 | |||||||
Entergy Louisiana [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 6,200 | 12,300 | 27,800 | 26,100 | 50,700 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 33,066 | |||||||
Entergy Mississippi [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 500 | 1,100 | 2,700 | 2,400 | 6,300 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 6,924 | |||||||
Entergy New Orleans [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 200 | 400 | 1,300 | 1,000 | 4,000 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 3,373 | |||||||
Entergy Texas [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 14 | (200) | 200 | (1,100) | 4,000 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 5,433 | |||||||
System Energy [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | 2,300 | 3,300 | $ 6,200 | $ 5,100 | $ 10,200 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 6,349 | |||||||
Subsequent Event [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 352,100 | |||||||
Subsequent Event [Member] | Entergy Arkansas [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 64,062 | |||||||
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 34,609 | |||||||
Subsequent Event [Member] | Entergy Louisiana [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 71,917 | |||||||
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 38,851 | |||||||
Subsequent Event [Member] | Entergy Mississippi [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 14,933 | |||||||
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 8,009 | |||||||
Subsequent Event [Member] | Entergy New Orleans [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 7,250 | |||||||
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 3,877 | |||||||
Subsequent Event [Member] | Entergy Texas [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 10,883 | |||||||
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 5,450 | |||||||
Subsequent Event [Member] | System Energy [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 13,786 | |||||||
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | $ 7,437 | |||||||
Non Qualified Pension Plans [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Net periodic benefit costs | $ 6,600 | 8,500 | 15,500 | 13,100 | ||||
Settlement Charge Associated With Out Of Plan Payment Of Lump Sum Benefits | 2,400 | 4,000 | 6,800 | 4,000 | ||||
Non Qualified Pension Plans [Member] | Entergy Arkansas [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Net periodic benefit costs | 122 | 267 | 254 | 372 | ||||
Settlement Charge Associated With Out Of Plan Payment Of Lump Sum Benefits | 10 | 163 | 22 | 163 | ||||
Non Qualified Pension Plans [Member] | Entergy Louisiana [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Net periodic benefit costs | 46 | 47 | 96 | 96 | ||||
Non Qualified Pension Plans [Member] | Entergy Mississippi [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Net periodic benefit costs | 77 | 63 | 157 | 127 | ||||
Non Qualified Pension Plans [Member] | Entergy New Orleans [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Net periodic benefit costs | 21 | 18 | 42 | 36 | ||||
Non Qualified Pension Plans [Member] | Entergy Texas [Member] | ||||||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||||||
Net periodic benefit costs | 270 | $ 126 | 407 | $ 253 | ||||
Settlement Charge Associated With Out Of Plan Payment Of Lump Sum Benefits | $ 139 | $ 139 |
Retirement And Other Postreti52
Retirement And Other Postretirement Benefits (Components Of Qualified Net Pension Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Plans Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | $ 38,752 | $ 33,410 | $ 77,504 | $ 66,820 |
Interest cost on projected benefit obligation | 66,854 | 65,206 | 133,708 | 130,412 |
Expected return on assets | (110,535) | (102,056) | (221,070) | (204,112) |
Amortization of prior service cost (credit) | 99 | 65 | 198 | 130 |
Amortization of loss | 68,526 | 56,930 | 137,052 | 113,860 |
Net other postretirement benefit cost | 63,696 | 53,555 | 127,392 | 107,110 |
Pension Plans Defined Benefit [Member] | Entergy Arkansas [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 6,189 | 5,090 | 12,378 | 10,180 |
Interest cost on projected benefit obligation | 13,004 | 12,944 | 26,008 | 25,888 |
Expected return on assets | (21,851) | (20,427) | (43,702) | (40,854) |
Amortization of loss | 13,412 | 11,640 | 26,824 | 23,280 |
Net other postretirement benefit cost | 10,754 | 9,247 | 21,508 | 18,494 |
Pension Plans Defined Benefit [Member] | Entergy Louisiana [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 8,446 | 6,925 | 16,892 | 13,850 |
Interest cost on projected benefit obligation | 14,940 | 14,809 | 29,880 | 29,618 |
Expected return on assets | (24,809) | (23,017) | (49,618) | (46,034) |
Amortization of loss | 14,450 | 12,354 | 28,900 | 24,708 |
Net other postretirement benefit cost | 13,027 | 11,071 | 26,054 | 22,142 |
Pension Plans Defined Benefit [Member] | Entergy Mississippi [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 1,822 | 1,472 | 3,644 | 2,944 |
Interest cost on projected benefit obligation | 3,769 | 3,732 | 7,538 | 7,464 |
Expected return on assets | (6,502) | (6,131) | (13,004) | (12,262) |
Amortization of loss | 3,610 | 3,053 | 7,220 | 6,106 |
Net other postretirement benefit cost | 2,699 | 2,126 | 5,398 | 4,252 |
Pension Plans Defined Benefit [Member] | Entergy New Orleans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 673 | 625 | 1,346 | 1,250 |
Interest cost on projected benefit obligation | 1,813 | 1,791 | 3,626 | 3,582 |
Expected return on assets | (2,993) | (2,800) | (5,986) | (5,600) |
Amortization of loss | 1,954 | 1,658 | 3,908 | 3,316 |
Net other postretirement benefit cost | 1,447 | 1,274 | 2,894 | 2,548 |
Pension Plans Defined Benefit [Member] | Entergy Texas [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 1,589 | 1,364 | 3,178 | 2,728 |
Interest cost on projected benefit obligation | 3,348 | 3,392 | 6,696 | 6,784 |
Expected return on assets | (6,523) | (6,180) | (13,046) | (12,360) |
Amortization of loss | 2,626 | 2,310 | 5,252 | 4,620 |
Net other postretirement benefit cost | 1,040 | 886 | 2,080 | 1,772 |
Pension Plans Defined Benefit [Member] | System Energy [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 1,776 | 1,536 | 3,552 | 3,072 |
Interest cost on projected benefit obligation | 3,227 | 3,091 | 6,454 | 6,182 |
Expected return on assets | (4,991) | (4,663) | (9,982) | (9,326) |
Amortization of loss | 3,715 | 2,964 | 7,430 | 5,928 |
Net other postretirement benefit cost | 3,727 | 2,928 | 7,454 | 5,856 |
Other Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 6,782 | 6,729 | 13,564 | 13,458 |
Interest cost on projected benefit obligation | 12,681 | 13,960 | 25,362 | 27,920 |
Expected return on assets | (10,373) | (9,408) | (20,746) | (18,816) |
Amortization of prior service cost (credit) | (9,251) | (10,356) | (18,502) | (20,712) |
Amortization of loss | 3,432 | 5,476 | 6,864 | 10,952 |
Net other postretirement benefit cost | 3,271 | 6,401 | 6,542 | 12,802 |
Other Postretirement [Member] | Entergy Arkansas [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 793 | 863 | 1,586 | 1,726 |
Interest cost on projected benefit obligation | 1,997 | 2,255 | 3,994 | 4,510 |
Expected return on assets | (4,342) | (3,959) | (8,684) | (7,918) |
Amortization of prior service cost (credit) | (1,278) | (1,278) | (2,556) | (2,556) |
Amortization of loss | 289 | 1,115 | 578 | 2,230 |
Net other postretirement benefit cost | (2,541) | (1,004) | (5,082) | (2,008) |
Other Postretirement [Member] | Entergy Louisiana [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 1,556 | 1,593 | 3,112 | 3,186 |
Interest cost on projected benefit obligation | 2,789 | 3,025 | 5,578 | 6,050 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (1,934) | (1,934) | (3,868) | (3,868) |
Amortization of loss | 388 | 465 | 776 | 930 |
Net other postretirement benefit cost | 2,799 | 3,149 | 5,598 | 6,298 |
Other Postretirement [Member] | Entergy Mississippi [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 321 | 290 | 642 | 580 |
Interest cost on projected benefit obligation | 683 | 690 | 1,366 | 1,380 |
Expected return on assets | (1,303) | (1,200) | (2,606) | (2,400) |
Amortization of prior service cost (credit) | (456) | (456) | (912) | (912) |
Amortization of loss | 377 | 419 | 754 | 838 |
Net other postretirement benefit cost | (378) | (257) | (756) | (514) |
Other Postretirement [Member] | Entergy New Orleans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 129 | 142 | 258 | 284 |
Interest cost on projected benefit obligation | 417 | 469 | 834 | 938 |
Expected return on assets | (1,313) | (1,159) | (2,626) | (2,318) |
Amortization of prior service cost (credit) | (186) | (186) | (372) | (372) |
Amortization of loss | 34 | 105 | 68 | 210 |
Net other postretirement benefit cost | (919) | (629) | (1,838) | (1,258) |
Other Postretirement [Member] | Entergy Texas [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 330 | 372 | 660 | 744 |
Interest cost on projected benefit obligation | 939 | 1,124 | 1,878 | 2,248 |
Expected return on assets | (2,446) | (2,180) | (4,892) | (4,360) |
Amortization of prior service cost (credit) | (579) | (579) | (1,158) | (1,158) |
Amortization of loss | 206 | 826 | 412 | 1,652 |
Net other postretirement benefit cost | (1,550) | (437) | (3,100) | (874) |
Other Postretirement [Member] | System Energy [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the period | 306 | 320 | 612 | 640 |
Interest cost on projected benefit obligation | 500 | 559 | 1,000 | 1,118 |
Expected return on assets | (783) | (717) | (1,566) | (1,434) |
Amortization of prior service cost (credit) | (378) | (378) | (756) | (756) |
Amortization of loss | 233 | 390 | 466 | 780 |
Net other postretirement benefit cost | (122) | 174 | (244) | 348 |
Non Qualified Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net other postretirement benefit cost | 6,600 | 8,500 | 15,500 | 13,100 |
Non Qualified Pension Plans [Member] | Entergy Arkansas [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net other postretirement benefit cost | 122 | 267 | 254 | 372 |
Non Qualified Pension Plans [Member] | Entergy Louisiana [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net other postretirement benefit cost | 46 | 47 | 96 | 96 |
Non Qualified Pension Plans [Member] | Entergy Mississippi [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net other postretirement benefit cost | 77 | 63 | 157 | 127 |
Non Qualified Pension Plans [Member] | Entergy New Orleans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net other postretirement benefit cost | 21 | 18 | 42 | 36 |
Non Qualified Pension Plans [Member] | Entergy Texas [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net other postretirement benefit cost | $ 270 | $ 126 | $ 407 | $ 253 |
Retirement And Other Postreti53
Retirement And Other Postretirement Benefits (Expected Employer Contributions) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2018 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 159,700 | |
Subsequent Event [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 352,100 | |
Entergy Louisiana [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 33,066 | |
Entergy Louisiana [Member] | Subsequent Event [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 71,917 | |
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 38,851 | |
Entergy Mississippi [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 6,924 | |
Entergy Mississippi [Member] | Subsequent Event [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 14,933 | |
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 8,009 | |
Entergy New Orleans [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 3,373 | |
Entergy New Orleans [Member] | Subsequent Event [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 7,250 | |
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 3,877 | |
Entergy Texas [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 5,433 | |
Entergy Texas [Member] | Subsequent Event [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 10,883 | |
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 5,450 | |
System Energy [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 6,349 | |
System Energy [Member] | Subsequent Event [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 13,786 | |
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | 7,437 | |
Entergy Arkansas [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 29,453 | |
Entergy Arkansas [Member] | Subsequent Event [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 64,062 | |
Defined Benefit Plan Remaining Contributions To Be Made In Current Fiscal Year | $ 34,609 |
Retirement And Other Postreti54
Retirement And Other Postretirement Benefits (Reclassification Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | $ 5,424 | $ 6,564 | $ 10,850 | $ 13,126 |
Amortization of loss | (24,808) | (21,554) | (49,760) | (43,125) |
Recognized Net Gain (Loss) Due To Settlements, Pre Tax | (406) | (1,765) | (2,022) | (1,765) |
Total | (19,790) | (16,755) | (40,932) | (31,764) |
Entergy Louisiana [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | 1,934 | 1,934 | 3,868 | 3,868 |
Amortization of loss | (1,256) | (1,332) | (2,513) | (2,664) |
Total | 678 | 602 | 1,355 | 1,204 |
Pension Plans Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | (99) | (65) | (198) | (130) |
Amortization of loss | (21,957) | (18,450) | (43,914) | (36,899) |
Recognized Net Gain (Loss) Due To Settlements, Pre Tax | 0 | 0 | ||
Total | (22,056) | (18,515) | (44,112) | (37,029) |
Pension Plans Defined Benefit [Member] | Parent Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognized Net Gain (Loss) Due To Settlements, Pre Tax | 0 | 0 | ||
Pension Plans Defined Benefit [Member] | Entergy Louisiana [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of loss | (867) | (865) | (1,734) | (1,730) |
Total | (867) | (865) | (1,734) | (1,730) |
Other Postretirement [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | 5,594 | 6,718 | 11,189 | 13,435 |
Amortization of loss | (1,933) | (2,202) | (3,865) | (4,404) |
Recognized Net Gain (Loss) Due To Settlements, Pre Tax | 0 | 0 | ||
Total | 3,661 | 4,516 | 7,324 | 9,031 |
Other Postretirement [Member] | Parent Company [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Recognized Net Gain (Loss) Due To Settlements, Pre Tax | 0 | 0 | ||
Other Postretirement [Member] | Entergy Louisiana [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | 1,934 | 1,934 | 3,868 | 3,868 |
Amortization of loss | (387) | (465) | (775) | (930) |
Total | 1,547 | 1,469 | 3,093 | 2,938 |
Non Qualified Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | (71) | (89) | (141) | (179) |
Amortization of loss | (918) | (902) | (1,981) | (1,822) |
Recognized Net Gain (Loss) Due To Settlements, Pre Tax | (406) | (1,765) | (2,022) | (1,765) |
Total | (1,395) | (2,756) | (4,144) | (3,766) |
Non Qualified Pension Plans [Member] | Entergy Louisiana [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of loss | (2) | (2) | (4) | (4) |
Total | $ (2) | $ (2) | $ (4) | $ (4) |
Business Segment Information Bu
Business Segment Information Business Segment Information (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 48 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||||
Asset Write-Offs, Impairments, And Related Charges | $ 68,943 | $ 193,571 | $ 141,867 | $ 405,362 | ||
Restructuring Charges | 34,000 | 42,000 | 60,000 | 66,000 | ||
Employee Retention and Severances Expenses and Other Benefits-Related Costs [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Charges | $ 34,000 | $ 42,000 | $ 60,000 | $ 66,000 | ||
Employee Retention and Severances Expenses and Other Benefits-Related Costs [Member] | Subsequent Event [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring Charges | $ 155,000 | $ 215,000 |
Business Segment Information (S
Business Segment Information (Segment Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |||
Segment Financial Information | |||||||
Operating revenues | $ 2,668,770 | $ 2,618,550 | $ 5,392,650 | $ 5,207,008 | |||
Income taxes (benefits) | (280,596) | (337,112) | (236,933) | (329,350) | |||
Consolidated net income | 248,860 | 413,368 | 385,059 | [1] | 499,420 | [1] | |
Assets | 47,622,649 | 47,622,649 | $ 46,707,149 | ||||
Utility [Member] | |||||||
Segment Financial Information | |||||||
Operating revenues | 2,360,208 | 2,301,332 | 4,665,197 | 4,336,444 | |||
Income taxes (benefits) | (240,324) | 130,851 | (188,100) | 229,343 | |||
Consolidated net income | 378,394 | 246,382 | 596,333 | 414,005 | |||
Assets | 44,117,784 | 44,117,784 | 42,978,669 | ||||
Entergy Wholesale Commodities [Member] | |||||||
Segment Financial Information | |||||||
Operating revenues | 308,602 | 317,255 | 727,526 | 870,622 | |||
Income taxes (benefits) | (30,144) | (454,944) | (31,222) | (533,281) | |||
Consolidated net income | (56,337) | 223,886 | (74,116) | 196,689 | |||
Assets | 5,433,618 | 5,433,618 | 5,638,009 | ||||
All Other [Member] | |||||||
Segment Financial Information | |||||||
Operating revenues | 0 | 0 | 0 | 0 | |||
Income taxes (benefits) | (10,128) | (13,019) | (17,611) | (25,412) | |||
Consolidated net income | (41,299) | (25,001) | (73,361) | (47,477) | |||
Assets | 1,240,106 | 1,240,106 | 1,011,612 | ||||
Eliminations [Member] | |||||||
Segment Financial Information | |||||||
Operating revenues | (40) | (37) | (73) | (58) | |||
Income taxes (benefits) | 0 | 0 | 0 | 0 | |||
Consolidated net income | (31,898) | $ (31,899) | (63,797) | $ (63,797) | |||
Assets | $ (3,168,859) | $ (3,168,859) | $ (2,921,141) | ||||
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |
Business Segment Information 57
Business Segment Information Business Segment Information (Restructuring Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||||||||
Restructuring Charges | $ 34 | $ 42 | $ 60 | $ 66 | ||||
Restructuring Reserve | 157 | 57 | 157 | 57 | $ 123 | $ 97 | $ 115 | $ 91 |
Payments for Restructuring | 0 | 100 | 0 | 100 | ||||
Employee Retention and Severances Expenses and Other Benefits-Related Costs [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring Charges | 34 | 42 | 60 | 66 | ||||
Restructuring Reserve | 143 | 36 | 143 | 36 | 109 | 83 | 94 | 70 |
Payments for Restructuring | 0 | 100 | 0 | 100 | ||||
Economic Development Costs [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Restructuring Charges | 0 | 0 | 0 | 0 | ||||
Restructuring Reserve | 14 | 21 | 14 | 21 | $ 14 | $ 14 | $ 21 | $ 21 |
Payments for Restructuring | $ 0 | $ 0 | $ 0 | $ 0 |
Risk Management and Fair Valu58
Risk Management and Fair Values (Narrative) (Details) $ in Thousands, TWh in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018USD ($)GWhMMBTU | Jun. 30, 2017USD ($) | Dec. 31, 2018TWh | Jun. 30, 2018USD ($)GWhMMBTUcounterparty | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)counterparty | |
Risk Management and Fair Values [Abstract] | ||||||
Cash flow hedges relating to power sales as part of net unrealized gains | $ (17,000) | |||||
Reclassified from accumulated other comprehensive income (OCI) to operating revenues | (2,000) | |||||
Maturity of cash flow hedges, Tax | $ 1,000 | $ 4,000 | $ (6,000) | $ 22,000 | ||
Maximum length of time over which Company is currently hedging the variability in future cash flows for forecasted power transactions, years | 2 years 6 months | |||||
Total volume of natural gas swaps outstanding (MMBtu) | MMBTU | 39,670,000 | 39,670,000 | ||||
Total volume of fixed transmission rights outstanding | GWh | 108,294 | 108,294 | ||||
Change in cash flow hedges due to ineffectiveness | $ (15,000) | 5,000 | $ (2,000) | 4,000 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset and Liability Unrealized Gains (Loss) Included in Earnings | (800) | $ (100) | (700) | $ 300 | ||
Entergy Arkansas [Member] | ||||||
Risk Management and Fair Values [Abstract] | ||||||
Letters of Credit Outstanding, Amount | $ 600 | $ 600 | $ 200 | |||
Total volume of fixed transmission rights outstanding | GWh | 24,646 | 24,646 | ||||
Entergy Louisiana [Member] | ||||||
Risk Management and Fair Values [Abstract] | ||||||
Total volume of natural gas swaps outstanding (MMBtu) | MMBTU | 32,100,000 | 32,100,000 | ||||
Total volume of fixed transmission rights outstanding | GWh | 46,135 | 46,135 | ||||
Entergy Mississippi [Member] | ||||||
Risk Management and Fair Values [Abstract] | ||||||
Letters of Credit Outstanding, Amount | $ 200 | $ 200 | 100 | |||
Total volume of natural gas swaps outstanding (MMBtu) | MMBTU | 7,570,000 | 7,570,000 | ||||
Total volume of fixed transmission rights outstanding | GWh | 14,368 | 14,368 | ||||
Entergy New Orleans [Member] | ||||||
Risk Management and Fair Values [Abstract] | ||||||
Total volume of fixed transmission rights outstanding | GWh | 5,184 | 5,184 | ||||
Entergy Texas [Member] | ||||||
Risk Management and Fair Values [Abstract] | ||||||
Letters of Credit Outstanding, Amount | 50 | |||||
Total volume of fixed transmission rights outstanding | GWh | 17,512 | 17,512 | ||||
Entergy Wholesale Commodities [Member] | ||||||
Risk Management and Fair Values [Abstract] | ||||||
Cash collateral posted | $ 5,000 | $ 5,000 | 1,000 | |||
Derivative, Collateral, Obligation to Return Cash | 3,000 | 3,000 | 4,000 | |||
Letters of Credit Held | 3,000 | $ 3,000 | $ 34,000 | |||
Number of Derivative Contract Counterparties in a Liability Position | counterparty | 7 | 8 | ||||
Dollar amount of hedge contract in a liability position | 30,000 | $ 30,000 | $ 65,000 | |||
Utility [Member] | ||||||
Risk Management and Fair Values [Abstract] | ||||||
Letters of Credit Outstanding, Amount | $ 1,000 | $ 1,000 | ||||
Subsequent Event [Member] | ||||||
Risk Management and Fair Values [Abstract] | ||||||
Planned generation sold forward from non utility nuclear power plants for the remainder of the period | 98.00% | |||||
Planned Generation From Non Nuclear Power Plants Sold Forward Under Financial Hedges | 82.00% | |||||
Total planned generation for remainder of the period | TWh | 14.1 |
Risk Management and Fair Valu59
Risk Management and Fair Values (Fair Values Of Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Utility [Member] | ||
Liabilities: | ||
Letters of Credit Outstanding, Amount | $ 1,000 | |
Entergy Wholesale Commodities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Cash collateral posted | 5,000 | $ 1,000 |
Assets: | ||
Derivative, Collateral, Obligation to Return Cash | 3,000 | 4,000 |
Liabilities: | ||
Letters of Credit Held | 3,000 | 34,000 |
Other Non-Current Liabilities [Member] | Electricity Swaps And Options [Member] | Entergy Wholesale Commodities [Member] | Designated As Hedging Instrument [Member] | ||
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 30,000 | 17,000 |
Derivative, Collateral, Right to Reclaim Cash | 10,000 | 14,000 |
Derivative Liability | 20,000 | 3,000 |
Other Deferred Debits And Other Assets [Member] | Electricity Swaps And Options [Member] | Entergy Wholesale Commodities [Member] | Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 0 | 5,000 |
Derivative Asset, Fair Value, Gross Asset | 11,000 | 19,000 |
Derivative, Collateral, Obligation to Return Cash | 11,000 | 14,000 |
Prepayments And Other [Member] | Electricity Swaps And Options [Member] | Entergy Wholesale Commodities [Member] | Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 8,000 | 0 |
Derivative Asset, Fair Value, Gross Asset | 29,000 | 19,000 |
Derivative, Collateral, Obligation to Return Cash | 21,000 | 19,000 |
Prepayments And Other [Member] | Electricity Swaps And Options [Member] | Entergy Wholesale Commodities [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 0 | 0 |
Derivative Asset, Fair Value, Gross Asset | 2,000 | 9,000 |
Derivative, Collateral, Obligation to Return Cash | 2,000 | 9,000 |
Prepayments And Other [Member] | Natural Gas Swaps [Member] | Utility [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 3,000 | |
Derivative Asset, Fair Value, Gross Asset | 3,000 | |
Prepayments And Other [Member] | Fixed Transmission Rights (FTRs) [Member] | Utility and Entergy Wholesale Commodities [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 41,000 | 21,000 |
Derivative Asset, Fair Value, Gross Asset | 42,000 | 22,000 |
Derivative, Collateral, Obligation to Return Cash | (1,000) | 1,000 |
Other Current Liabilities [Member] | Electricity Swaps And Options [Member] | Entergy Wholesale Commodities [Member] | Designated As Hedging Instrument [Member] | ||
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 34,000 | 86,000 |
Derivative, Collateral, Right to Reclaim Cash | 21,000 | 20,000 |
Derivative Liability | 13,000 | 66,000 |
Other Current Liabilities [Member] | Electricity Swaps And Options [Member] | Entergy Wholesale Commodities [Member] | Not Designated As Hedging Instrument [Member] | ||
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 2,000 | 9,000 |
Derivative, Collateral, Right to Reclaim Cash | 2,000 | 8,000 |
Derivative Liability | 0 | 1,000 |
Other Current Liabilities [Member] | Natural Gas Swaps [Member] | Utility [Member] | Not Designated As Hedging Instrument [Member] | ||
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 6,000 | |
Derivative, Collateral, Right to Reclaim Cash | 0 | |
Derivative Liability | 6,000 | |
Entergy Louisiana [Member] | Prepayments And Other [Member] | Natural Gas Swaps [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 2,700 | |
Derivative Asset, Fair Value, Gross Asset | 2,700 | |
Derivative, Collateral, Obligation to Return Cash | 0 | |
Entergy Louisiana [Member] | Prepayments And Other [Member] | Fixed Transmission Rights (FTRs) [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 18,200 | 10,200 |
Derivative Asset, Fair Value, Gross Asset | 18,500 | 11,000 |
Derivative, Collateral, Obligation to Return Cash | (300) | (800) |
Entergy Louisiana [Member] | Other Current Liabilities [Member] | Natural Gas Swaps [Member] | Not Designated As Hedging Instrument [Member] | ||
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 5,000 | |
Derivative, Collateral, Right to Reclaim Cash | 0 | |
Derivative Liability | 5,000 | |
Entergy Mississippi [Member] | ||
Liabilities: | ||
Letters of Credit Outstanding, Amount | 200 | 100 |
Entergy Mississippi [Member] | Prepayments And Other [Member] | Natural Gas Swaps [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 500 | |
Derivative Asset, Fair Value, Gross Asset | 500 | |
Derivative, Collateral, Obligation to Return Cash | 0 | |
Entergy Mississippi [Member] | Prepayments And Other [Member] | Fixed Transmission Rights (FTRs) [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 4,400 | 2,100 |
Derivative Asset, Fair Value, Gross Asset | 4,400 | 2,100 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Entergy Mississippi [Member] | Other Current Liabilities [Member] | Natural Gas Swaps [Member] | Not Designated As Hedging Instrument [Member] | ||
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 1,200 | |
Derivative, Collateral, Right to Reclaim Cash | 0 | |
Derivative Liability | 1,200 | |
Entergy New Orleans [Member] | Prepayments And Other [Member] | Fixed Transmission Rights (FTRs) [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 3,000 | 2,200 |
Derivative Asset, Fair Value, Gross Asset | 3,000 | 2,200 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Entergy New Orleans [Member] | Other Current Liabilities [Member] | Natural Gas Swaps [Member] | Not Designated As Hedging Instrument [Member] | ||
Liabilities: | ||
Derivative Liability, Fair Value, Gross Liability | 200 | |
Derivative, Collateral, Right to Reclaim Cash | 0 | |
Derivative Liability | 200 | |
Entergy Arkansas [Member] | ||
Liabilities: | ||
Letters of Credit Outstanding, Amount | 600 | 200 |
Entergy Arkansas [Member] | Prepayments And Other [Member] | Fixed Transmission Rights (FTRs) [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 10,500 | 3,000 |
Derivative Asset, Fair Value, Gross Asset | 11,100 | 3,200 |
Derivative, Collateral, Obligation to Return Cash | (600) | (200) |
Entergy Texas [Member] | ||
Liabilities: | ||
Letters of Credit Outstanding, Amount | 50 | |
Entergy Texas [Member] | Prepayments And Other [Member] | Fixed Transmission Rights (FTRs) [Member] | Not Designated As Hedging Instrument [Member] | ||
Assets: | ||
Derivative Asset | 4,700 | 3,400 |
Derivative Asset, Fair Value, Gross Asset | 5,300 | 3,600 |
Derivative, Collateral, Obligation to Return Cash | $ (600) | $ (200) |
Risk Management and Fair Valu60
Risk Management and Fair Values (Derivative Instruments Designated as Cash Flow Hedges On Consolidated Statements Of Income) (Details) - Competitive Businesses Operating Revenues [Member] - Electricity Swaps And Options [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Effect of Derivative instruments designated as cash flow hedges on consolidated statements of income | ||||
Amount of gain (loss) recognized in AOCI (effective portion) | $ (80) | $ 43 | $ 11 | $ 93 |
Amount of gain reclassified from accumulated OCI into income (effective portion) | $ 3 | $ 13 | $ (27) | $ 64 |
Risk Management and Fair Valu61
Risk Management and Fair Values (Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income) (Details) - Not Designated As Hedging Instrument [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Competitive Businesses Operating Revenues [Member] | Electricity Swaps And Options [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recognized in AOCI | $ 0 | $ (5) | $ 0 | $ 4 |
Amount of gain (loss) recorded in income | 1 | 0 | 1 | 0 |
Fuel, Fuel Related Expenses And Gas Purchased For Resale [Member] | Natural Gas Swaps [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain (loss) recorded in income | 6 | (9) | 6 | (16) |
Purchased Power Expense [Member] | Fixed Transmission Rights (FTRs) [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recognized in AOCI | 0 | 0 | 0 | 0 |
Amount of gain (loss) recorded in income | 41 | 44 | 73 | 75 |
Entergy Arkansas [Member] | Purchased Power Expense [Member] | Fixed Transmission Rights (FTRs) [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recorded in income | 2.1 | 10.5 | 10.1 | 15.1 |
Entergy Louisiana [Member] | Fuel, Fuel Related Expenses And Gas Purchased For Resale [Member] | Natural Gas Swaps [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recorded in income | 4.9 | (7.6) | 4.9 | (13.7) |
Entergy Louisiana [Member] | Purchased Power Expense [Member] | Fixed Transmission Rights (FTRs) [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recorded in income | 25.8 | 14.3 | 43.4 | 29.5 |
Entergy Mississippi [Member] | Fuel, Fuel Related Expenses And Gas Purchased For Resale [Member] | Natural Gas Swaps [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recorded in income | 0.9 | (1.4) | 0.7 | (2.5) |
Entergy Mississippi [Member] | Purchased Power Expense [Member] | Fixed Transmission Rights (FTRs) [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recorded in income | 9.8 | 8.5 | 17.6 | 11.6 |
Entergy New Orleans [Member] | Fuel, Fuel Related Expenses And Gas Purchased For Resale [Member] | Natural Gas Swaps [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recorded in income | (0.1) | (0.1) | ||
Entergy New Orleans [Member] | Purchased Power Expense [Member] | Fixed Transmission Rights (FTRs) [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recorded in income | 5.2 | 3.4 | 8.4 | 5.7 |
Entergy Texas [Member] | Purchased Power Expense [Member] | Fixed Transmission Rights (FTRs) [Member] | ||||
Effect Of Derivative Instruments Not Designated As Hedging Instruments On The Consolidated Statements Of Income [Line Items] | ||||
Amount of gain (loss) recorded in income | $ (1.8) | $ 6.9 | $ (5.3) | $ 12.1 |
Risk Management and Fair Valu62
Risk Management and Fair Values (Assets And Liabilities At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Assets at fair value on a recurring basis | |||
Temporary cash investments | $ 758 | $ 725 | |
Assets other than temporary cash investments | 7,212 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 8,466 | 8,414 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 76 | ||
Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 6 | ||
Power Contracts Liabilities [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 70 | ||
Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | 562 | 526 | |
Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 2,620 | 2,550 | |
Common trust funds valued using Net Asset Value [Domain] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 4,035 | 4,136 | |
Power Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 8 | 5 | |
Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 399 | 406 | |
Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 40 | 45 | |
Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 41 | 21 | |
Fair Value Inputs Level 1 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 758 | 725 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 2,826 | 2,827 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 6 | ||
Fair Value Inputs Level 1 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 6 | ||
Fair Value Inputs Level 1 [Member] | Power Contracts Liabilities [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | 562 | 526 | |
Fair Value Inputs Level 1 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 1,064 | 1,125 | |
Fair Value Inputs Level 1 [Member] | Power Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value Inputs Level 1 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 399 | 406 | |
Fair Value Inputs Level 1 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 40 | 45 | |
Fair Value Inputs Level 1 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | 0 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 1,556 | 1,425 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Power Contracts Liabilities [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 1,556 | 1,425 | |
Fair Value, Inputs, Level 2 [Member] | Power Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | 0 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 49 | 26 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 70 | ||
Fair Value, Inputs, Level 3 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Power Contracts Liabilities [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 33 | 70 | |
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Power Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 8 | 5 | |
Fair Value, Inputs, Level 3 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 41 | 21 | |
Entergy Mississippi [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 4.5 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 37.1 | 38.6 | |
Entergy Mississippi [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 1.2 | ||
Entergy Mississippi [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 32.2 | 32 | |
Entergy Mississippi [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 4.4 | 2.1 | |
Entergy Mississippi [Member] | Fair Value Inputs Level 1 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 4.5 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 32.7 | 36.5 | |
Entergy Mississippi [Member] | Fair Value Inputs Level 1 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 1.2 | ||
Entergy Mississippi [Member] | Fair Value Inputs Level 1 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 32.2 | 32 | |
Entergy Mississippi [Member] | Fair Value Inputs Level 1 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Mississippi [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Entergy Mississippi [Member] | Fair Value, Inputs, Level 2 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | ||
Entergy Mississippi [Member] | Fair Value, Inputs, Level 2 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Mississippi [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Mississippi [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 4.4 | 2.1 | |
Entergy Mississippi [Member] | Fair Value, Inputs, Level 3 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | ||
Entergy Mississippi [Member] | Fair Value, Inputs, Level 3 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Mississippi [Member] | Fair Value, Inputs, Level 3 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 4.4 | 2.1 | |
Entergy Louisiana [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 28.8 | 30.1 | |
Assets other than temporary cash investments | 1,312.1 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 1,674.7 | 1,643.9 | |
Entergy Louisiana [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 5 | ||
Entergy Louisiana [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 18.1 | 15.2 |
Entergy Louisiana [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 513.8 | 493.8 |
Entergy Louisiana [Member] | Common trust funds valued using Net Asset Value [Domain] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 803 | 803.1 |
Entergy Louisiana [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 286.7 | 289.5 | |
Entergy Louisiana [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 3.4 | 2 | |
Entergy Louisiana [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 18.2 | 10.2 | |
Entergy Louisiana [Member] | Fair Value Inputs Level 1 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 28.8 | 30.1 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 481.2 | 480.1 | |
Entergy Louisiana [Member] | Fair Value Inputs Level 1 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 5 | ||
Entergy Louisiana [Member] | Fair Value Inputs Level 1 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 18.1 | 15.2 |
Entergy Louisiana [Member] | Fair Value Inputs Level 1 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 141.5 | 143.3 |
Entergy Louisiana [Member] | Fair Value Inputs Level 1 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 286.7 | 289.5 | |
Entergy Louisiana [Member] | Fair Value Inputs Level 1 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 3.4 | 2 | |
Entergy Louisiana [Member] | Fair Value Inputs Level 1 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | 0 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 372.3 | 350.5 | |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 2 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | ||
Entergy Louisiana [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 0 | 0 |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 372.3 | 350.5 |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 2 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 2 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | 0 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 18.2 | 10.2 | |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 3 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | ||
Entergy Louisiana [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 0 | 0 |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 0 | 0 |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 3 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 3 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Louisiana [Member] | Fair Value, Inputs, Level 3 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 18.2 | 10.2 | |
Entergy Arkansas [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 944.9 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 1,201.8 | 954 | |
Entergy Arkansas [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 11.3 | 11.7 |
Entergy Arkansas [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 341.7 | 348.2 |
Entergy Arkansas [Member] | Common trust funds valued using Net Asset Value [Domain] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 601.4 | 585 |
Entergy Arkansas [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 2.4 | ||
Entergy Arkansas [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 4.1 | 3.7 | |
Entergy Arkansas [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 10.5 | 3 | |
Entergy Arkansas [Member] | Fair Value Inputs Level 1 [Member] | |||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 337.3 | 133.6 | |
Entergy Arkansas [Member] | Fair Value Inputs Level 1 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 11.3 | 11.7 |
Entergy Arkansas [Member] | Fair Value Inputs Level 1 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 89.1 | 115.8 |
Entergy Arkansas [Member] | Fair Value Inputs Level 1 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 2.4 | ||
Entergy Arkansas [Member] | Fair Value Inputs Level 1 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 4.1 | 3.7 | |
Entergy Arkansas [Member] | Fair Value Inputs Level 1 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 252.6 | 232.4 | |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 0 | 0 |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 252.6 | 232.4 |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 2 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | ||
Entergy Arkansas [Member] | Fair Value, Inputs, Level 2 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 10.5 | 3 | |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 0 | 0 |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 0 | 0 |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 3 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | ||
Entergy Arkansas [Member] | Fair Value, Inputs, Level 3 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Arkansas [Member] | Fair Value, Inputs, Level 3 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 10.5 | 3 | |
Entergy New Orleans [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 32.7 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 84.6 | 118.3 | |
Entergy New Orleans [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0.2 | ||
Entergy New Orleans [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 80.1 | 81.9 | |
Entergy New Orleans [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 1.5 | 1.5 | |
Entergy New Orleans [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 3 | 2.2 | |
Entergy New Orleans [Member] | Fair Value Inputs Level 1 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 32.7 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 81.6 | 116.1 | |
Entergy New Orleans [Member] | Fair Value Inputs Level 1 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0.2 | ||
Entergy New Orleans [Member] | Fair Value Inputs Level 1 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 80.1 | 81.9 | |
Entergy New Orleans [Member] | Fair Value Inputs Level 1 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 1.5 | 1.5 | |
Entergy New Orleans [Member] | Fair Value Inputs Level 1 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy New Orleans [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Entergy New Orleans [Member] | Fair Value, Inputs, Level 2 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | ||
Entergy New Orleans [Member] | Fair Value, Inputs, Level 2 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy New Orleans [Member] | Fair Value, Inputs, Level 2 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy New Orleans [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy New Orleans [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 3 | 2.2 | |
Entergy New Orleans [Member] | Fair Value, Inputs, Level 3 [Member] | Gas Hedge Contracts [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 0 | ||
Entergy New Orleans [Member] | Fair Value, Inputs, Level 3 [Member] | Storm Reserve Escrow Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy New Orleans [Member] | Fair Value, Inputs, Level 3 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy New Orleans [Member] | Fair Value, Inputs, Level 3 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 3 | 2.2 | |
Entergy Texas [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 40.4 | 115.5 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 76.3 | 156.6 | |
Entergy Texas [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 31.2 | 37.7 | |
Entergy Texas [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 4.7 | 3.4 | |
Entergy Texas [Member] | Fair Value Inputs Level 1 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 40.4 | 115.5 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 71.6 | 153.2 | |
Entergy Texas [Member] | Fair Value Inputs Level 1 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 31.2 | 37.7 | |
Entergy Texas [Member] | Fair Value Inputs Level 1 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Texas [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | 0 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Entergy Texas [Member] | Fair Value, Inputs, Level 2 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Texas [Member] | Fair Value, Inputs, Level 2 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Texas [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | 0 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 4.7 | 3.4 | |
Entergy Texas [Member] | Fair Value, Inputs, Level 3 [Member] | Securitization Recovery Trust Account [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | 0 | |
Entergy Texas [Member] | Fair Value, Inputs, Level 3 [Member] | Fixed Transmission Rights (FTRs) [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 4.7 | 3.4 | |
System Energy [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 258.7 | 287.1 | |
Assets other than temporary cash investments | 905.7 | ||
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 1,173.1 | 1,192.8 | |
System Energy [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 5 | 3.1 |
System Energy [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 324.2 | 330.5 |
System Energy [Member] | Common trust funds valued using Net Asset Value [Domain] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 585.2 | 572.1 |
System Energy [Member] | Fair Value Inputs Level 1 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 258.7 | 287.1 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 442.4 | 477.4 | |
System Energy [Member] | Fair Value Inputs Level 1 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 5 | 3.1 |
System Energy [Member] | Fair Value Inputs Level 1 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 178.7 | 187.2 |
System Energy [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | 0 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 145.5 | 143.3 | |
System Energy [Member] | Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 0 | 0 |
System Energy [Member] | Fair Value, Inputs, Level 2 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 145.5 | 143.3 |
System Energy [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | 0 | |
Liabilities at fair value on a recurring basis | |||
Assets, Fair Value Disclosure | 0 | 0 | |
System Energy [Member] | Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Equity Securities, FV-NI | [1] | 0 | 0 |
System Energy [Member] | Fair Value, Inputs, Level 3 [Member] | Debt Securities [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | [1] | 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | Power Contracts Liabilities [Member] | |||
Liabilities at fair value on a recurring basis | |||
Liabilities, Fair Value Disclosure on Recurring Basis | 33 | ||
Fair Value, Measurements, Recurring [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 3 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 1 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 3 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Mississippi [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0.5 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Mississippi [Member] | Fair Value Inputs Level 1 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0.5 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Mississippi [Member] | Fair Value, Inputs, Level 2 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Mississippi [Member] | Fair Value, Inputs, Level 3 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Louisiana [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 2.7 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Louisiana [Member] | Fair Value Inputs Level 1 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 2.7 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Louisiana [Member] | Fair Value, Inputs, Level 2 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Louisiana [Member] | Fair Value, Inputs, Level 3 [Member] | Gas Hedge Contracts Assets [Member] | |||
Assets at fair value on a recurring basis | |||
Assets other than temporary cash investments | 0 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Arkansas [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 232.8 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Arkansas [Member] | Fair Value Inputs Level 1 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 232.8 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Arkansas [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | 0 | ||
Fair Value, Measurements, Recurring [Member] | Entergy Arkansas [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Assets at fair value on a recurring basis | |||
Temporary cash investments | $ 0 | ||
[1] | (a)The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 to the financial statements herein for additional information on the investment portfolios.(b)Common trust funds are not publicly quoted, and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date. |
Risk Management and Fair Valu63
Risk Management and Fair Values (Reconciliation Of Changes In The Net Assets (Liabilities) For The Fair Value Of Derivatives Classified As Level 3 In The Fair Value Hierarchy) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 25 | $ 25 | ||||||
Issuance of Financial Transmission Rights | 0 | $ 0 | 0 | $ 0 | ||||
Electricity Swaps And Options [Member] | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 38 | 38 | $ 75 | $ 5 | $ 5 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | (25) | (25) | $ (65) | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 4 | 4 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (15) | (1) | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 43 | 93 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | (80) | 11 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included as Regulatory Liability/Asset | 0 | 0 | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 14 | 64 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 5 | (30) | ||||||
Fixed Transmission Rights (FTRs) [Member] | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 41 | 57 | 41 | 57 | 8 | 21 | 8 | 21 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 0 | 0 | (1) | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included as Regulatory Liability/Asset | 28 | 31 | 48 | 48 | ||||
Issuance of Financial Transmission Rights | 46 | 62 | 46 | 62 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 41 | 44 | 73 | 74 | ||||
Fixed Transmission Rights (FTRs) [Member] | Entergy Arkansas [Member] | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 10.5 | 8.3 | 10.5 | 8.3 | 1.8 | 3 | 0.9 | 5.4 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 9.1 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included as Regulatory Liability/Asset | 9 | 5.8 | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included as Regulatory Liability/Asset | (1) | |||||||
Issuance of Financial Transmission Rights | 11.8 | 8.9 | 11.8 | 8.9 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 2.1 | 10.5 | 10.1 | 15.1 | ||||
Fixed Transmission Rights (FTRs) [Member] | Entergy Louisiana [Member] | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 18.2 | 28.3 | 18.2 | 28.3 | 3.4 | 10.2 | 4.1 | 8.5 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 18.3 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included as Regulatory Liability/Asset | 20.6 | 7.5 | 31.4 | |||||
Issuance of Financial Transmission Rights | 20 | 31 | 20 | 31 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 25.8 | 14.3 | 43.4 | 29.5 | ||||
Fixed Transmission Rights (FTRs) [Member] | Entergy Mississippi [Member] | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 4.4 | 9.1 | 4.4 | 9.1 | 0.9 | 2.1 | 1.3 | 3.2 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 7.9 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included as Regulatory Liability/Asset | 8.8 | 6.7 | 15.4 | |||||
Issuance of Financial Transmission Rights | 4.5 | 9.6 | 4.5 | 9.6 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 9.8 | 8.5 | 17.6 | 11.6 | ||||
Fixed Transmission Rights (FTRs) [Member] | Entergy New Orleans [Member] | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 3 | 5.2 | 3 | 5.2 | 0.7 | 2.2 | 0.5 | 1.1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 4.8 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included as Regulatory Liability/Asset | 3.8 | 3.1 | 5.5 | |||||
Issuance of Financial Transmission Rights | 3.7 | 5 | 3.7 | 5 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | 5.2 | 3.4 | 8.4 | 5.7 | ||||
Fixed Transmission Rights (FTRs) [Member] | Entergy Texas [Member] | ||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 4.7 | 5.5 | 4.7 | 5.5 | $ 1.4 | $ 3.4 | $ 1 | $ 3.1 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 7.4 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included as Regulatory Liability/Asset | 4.3 | |||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included as Regulatory Liability/Asset | (4.6) | (10.1) | ||||||
Issuance of Financial Transmission Rights | 6.1 | 7.1 | 6.1 | 7.1 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | $ 1.8 | $ 6.9 | $ 5.3 | $ 12.1 |
Risk Management and Fair Valu64
Risk Management and Fair Values (Schedules Of Valuation Techniques) (Details) $ in Millions | Jun. 30, 2018USD ($) |
Effect of Significant Unobservable Inputs on Fair Value of Electricity Swaps | $ (3) |
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ (25) |
Maximum [Member] | |
Range from Average Percentage for Fair Value of Electricity Swaps | 4.75% |
Minimum [Member] | |
Range from Average Percentage for Fair Value of Electricity Swaps | 4.00% |
Decommissioning Trust Funds (Na
Decommissioning Trust Funds (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jan. 01, 2018 | |
Decommissioning Trust Funds [Abstract] | ||||||
Accumulated Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax | $ (632,617) | |||||
Amortized cost of debt securities | $ 2,653,000 | $ 2,653,000 | $ 2,539,000 | |||
Average coupon rate of debt securities | 3.31% | 3.31% | ||||
Average duration of debt securities, years | 6 years 281 days | |||||
Average maturity of debt securities, years | 10 years 22 days | |||||
Proceeds from the dispositions of debt securities | $ 710,000 | $ 949,000 | $ 1,801,000 | $ 1,463,000 | ||
Gains from dispositions of debt securities, gross | 1,000 | 61,000 | 2,000 | 70,000 | ||
Losses from dispositions of debt securities, gross | 15,000 | 2,000 | 22,000 | 7,000 | ||
Equity Securities, FV-NI, Unrealized Gain | 100,000 | 33,000 | ||||
Equity Securities [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Deferred taxes on unrealized gains/(losses) recorded in OCI for non-regulated decommissioning trusts | 472,000 | |||||
Debt Securities [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Deferred taxes on unrealized gains/(losses) recorded in OCI for non-regulated decommissioning trusts | (5,000) | 7,000 | ||||
Entergy Arkansas [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Amortized cost of debt securities | $ 351,200 | $ 351,200 | 349,100 | |||
Average coupon rate of debt securities | 2.64% | 2.64% | ||||
Average duration of debt securities, years | 4 years 263 days | |||||
Average maturity of debt securities, years | 6 years 139 days | |||||
Proceeds from the dispositions of debt securities | $ 86,500 | 131,300 | $ 121,400 | 167,300 | ||
Gains from dispositions of debt securities, gross | 10 | 11,200 | 100 | 11,700 | ||
Losses from dispositions of debt securities, gross | 2,300 | 100 | 2,400 | 200 | ||
Equity Securities, FV-NI, Unrealized Gain | 16,800 | 8,900 | ||||
Entergy Louisiana [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Amortized cost of debt securities | $ 519,300 | $ 519,300 | 490,000 | |||
Average coupon rate of debt securities | 3.79% | 3.79% | ||||
Average duration of debt securities, years | 5 years 314 days | |||||
Average maturity of debt securities, years | 11 years 234 days | |||||
Proceeds from the dispositions of debt securities | $ 43,900 | 85,000 | $ 169,400 | 125,600 | ||
Gains from dispositions of debt securities, gross | 10 | 5,000 | 500 | 5,000 | ||
Losses from dispositions of debt securities, gross | 400 | 100 | $ 1,200 | 300 | ||
Percentage Interest in River Bend | 30.00% | |||||
Equity Securities, FV-NI, Unrealized Gain | 22,200 | $ 11,500 | ||||
System Energy [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Amortized cost of debt securities | $ 328,300 | $ 328,300 | 327,500 | |||
Average coupon rate of debt securities | 2.93% | 2.93% | ||||
Average duration of debt securities, years | 6 years 80 days | |||||
Average maturity of debt securities, years | 9 years 44 days | |||||
Proceeds from the dispositions of debt securities | $ 145,200 | 177,700 | $ 199,400 | 253,500 | ||
Gains from dispositions of debt securities, gross | 200 | 400 | 300 | 500 | ||
Losses from dispositions of debt securities, gross | 3,900 | $ 600 | 4,500 | $ 1,300 | ||
Equity Securities, FV-NI, Unrealized Gain | 16,300 | 8,500 | ||||
Indian Point 3 [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Decommissioning Fund Investments, Fair Value | 801,000 | 801,000 | 798,000 | |||
Indian Point 1 [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Decommissioning Fund Investments, Fair Value | 491,000 | 491,000 | 491,000 | |||
Indian Point 2 [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Decommissioning Fund Investments, Fair Value | 621,000 | 621,000 | 621,000 | |||
Palisades [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Decommissioning Fund Investments, Fair Value | 460,000 | 460,000 | 458,000 | |||
Pilgrim [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Decommissioning Fund Investments, Fair Value | 1,055,000 | 1,055,000 | 1,068,000 | |||
Vermont Yankee [Member] | ||||||
Decommissioning Trust Funds [Abstract] | ||||||
Decommissioning Fund Investments, Fair Value | $ 585,000 | $ 585,000 | $ 613,000 |
Decommissioning Trust Funds (Se
Decommissioning Trust Funds (Securities Held) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 7,212 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,175 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 17 | |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 4,662 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 2,131 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1 | |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | $ 2,620 | 2,550 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 20 | 44 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 53 | 16 |
Entergy Arkansas [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 944.9 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 357 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 3 | |
Entergy Arkansas [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 596.7 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 354.9 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Entergy Arkansas [Member] | Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 341.7 | 348.2 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 0.4 | 2.1 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 9.9 | 3 |
Entergy Louisiana [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 1,312.1 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 472.1 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 3.6 | |
Entergy Louisiana [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 818.3 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 461.2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
Entergy Louisiana [Member] | Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 513.8 | 493.8 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 4.7 | 10.9 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 10.3 | 3.6 |
System Energy [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 905.7 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 312.8 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1.2 | |
System Energy [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 575.2 | |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 308.6 | |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | |
System Energy [Member] | Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value | 324.2 | 330.5 |
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax | 1.6 | 4.2 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | $ 5.7 | $ 1.2 |
Decommissioning Trust Funds (Av
Decommissioning Trust Funds (Available For Sale Securities Continuous Unrealized Loss Position Fair Value) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | $ 8 | |
More than 12 months Fair Value | 0 | |
Total Fair Value | 8 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 1 | |
Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | $ 1,624 | 1,099 |
More than 12 months Fair Value | 229 | 265 |
Total Fair Value | 1,853 | 1,364 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 40 | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 13 | 9 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 53 | 16 |
Entergy Arkansas [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 0 | |
More than 12 months Fair Value | 0 | |
Total Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | |
Entergy Arkansas [Member] | Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 266.6 | 168 |
More than 12 months Fair Value | 34.4 | 41.4 |
Total Fair Value | 301 | 209.4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 7.9 | 1.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2 | 1.8 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 9.9 | 3 |
Entergy Louisiana [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 0 | |
More than 12 months Fair Value | 0 | |
Total Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | |
Entergy Louisiana [Member] | Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 287.6 | 135.3 |
More than 12 months Fair Value | 75.5 | 84.4 |
Total Fair Value | 363.1 | 219.7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 6.3 | 1.1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 4 | 2.5 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 10.3 | 3.6 |
System Energy [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 0 | |
More than 12 months Fair Value | 0 | |
Total Fair Value | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | |
System Energy [Member] | Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months Fair Value | 187 | 196.9 |
More than 12 months Fair Value | 9.2 | 10.4 |
Total Fair Value | 196.2 | 207.3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 5.1 | 1 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0.6 | 0.2 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 5.7 | $ 1.2 |
Decommissioning Trust Funds (Fa
Decommissioning Trust Funds (Fair Value Of Debt Securities By Contractual Maturities) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair value of debt securities by contractual maturities | ||
Less than 1 year | $ 131 | $ 74 |
1 year - 5 years | 963 | 902 |
5 years - 10 years | 693 | 812 |
10 years - 15 years | 148 | 147 |
15 years - 20 years | 105 | 100 |
20 years+ | 580 | 515 |
Total | 2,620 | 2,550 |
Entergy Arkansas [Member] | ||
Fair value of debt securities by contractual maturities | ||
Less than 1 year | 29.5 | 13 |
1 year - 5 years | 161.6 | 123.4 |
5 years - 10 years | 115.4 | 180.6 |
10 years - 15 years | 3.4 | 4.8 |
15 years - 20 years | 5.9 | 3.4 |
20 years+ | 25.9 | 23 |
Total | 341.7 | 348.2 |
Entergy Louisiana [Member] | ||
Fair value of debt securities by contractual maturities | ||
Less than 1 year | 29.5 | 23.2 |
1 year - 5 years | 140.5 | 122.8 |
5 years - 10 years | 101.7 | 109.3 |
10 years - 15 years | 53.7 | 52.7 |
15 years - 20 years | 45 | 50.7 |
20 years+ | 143.4 | 135.1 |
Total | 513.8 | 493.8 |
System Energy [Member] | ||
Fair value of debt securities by contractual maturities | ||
Less than 1 year | 9.7 | 4.1 |
1 year - 5 years | 169.2 | 173 |
5 years - 10 years | 71.6 | 78.5 |
10 years - 15 years | 2.7 | 1 |
15 years - 20 years | 11.3 | 6.9 |
20 years+ | 59.7 | 67 |
Total | $ 324.2 | $ 330.5 |
Income Taxes Income Taxes (Narr
Income Taxes Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Entergy Arkansas [Member] | |||
Reduction to regulatory liability for income taxes resulting from return of unprotected excess ADIT | $ 108 | ||
Entergy Louisiana [Member] | |||
Tax benefits related to Hurricane Katrina and Hurricane Rita contingent sharing obligation | $ 52 | ||
Unrecognized Tax Benefits | $ 856 | 856 | $ 926 |
Reduction to regulatory liability for income taxes resulting from return of unprotected excess ADIT | 31 | ||
Entergy Mississippi [Member] | |||
Reduction to regulatory liability for income taxes resulting from return of unprotected excess ADIT | 129 | ||
System Energy [Member] | |||
Reduction to regulatory liability for income taxes resulting from return of unprotected excess ADIT | $ 11 |
Property, Plant, And Equipment
Property, Plant, And Equipment (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Construction expenditures in accounts payable | $ 280 | $ 368 |
Entergy Arkansas [Member] | ||
Construction expenditures in accounts payable | 30.3 | 58.8 |
Entergy Louisiana [Member] | ||
Construction expenditures in accounts payable | 113.5 | 160.4 |
Entergy Mississippi [Member] | ||
Construction expenditures in accounts payable | 15.2 | 17.1 |
Entergy New Orleans [Member] | ||
Construction expenditures in accounts payable | 4.8 | 2.5 |
Entergy Texas [Member] | ||
Construction expenditures in accounts payable | 7.1 | 32.8 |
System Energy [Member] | ||
Construction expenditures in accounts payable | $ 53 | $ 33.9 |
Variable Interest Entities (Nar
Variable Interest Entities (Narrative) (Details) - Grand Gulf [Member] - System Energy [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 11.50% | |
Payments on lease, including interest | $ 8.6 | $ 8.6 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Electric Revenue | $ 2,330,225 | $ 2,271,220 | $ 4,578,486 | $ 4,262,960 | |
Gas Domestic Regulated Revenue | 29,943 | 30,075 | 86,638 | 73,426 | |
Competitive Energy Revenue | 308,602 | 317,255 | 727,526 | 870,622 | |
TOTAL | 2,668,770 | 2,618,550 | 5,392,650 | 5,207,008 | |
Residential [Member] | |||||
Electric Revenue | 768,710 | 1,660,795 | |||
Commercial [Member] | |||||
Electric Revenue | 581,899 | 1,177,620 | |||
Industrial [Member] | |||||
Electric Revenue | 624,818 | 1,222,004 | |||
Governmental [Member] | |||||
Electric Revenue | 56,823 | 113,301 | |||
Sales for Resale [Member] | |||||
Electric Revenue | [1] | 69,212 | 138,738 | ||
Other Electric [Member] | |||||
Electric Revenue | [2] | 219,391 | 246,822 | ||
Non-Customer [Member] | |||||
Electric Revenue | [3] | 9,372 | 19,206 | ||
Competitive Energy Revenue | [3] | (22,960) | (13,171) | ||
Competitive Business Sales [Member] | |||||
Competitive Energy Revenue | [1] | 331,562 | 740,697 | ||
Retail [Member] | |||||
Electric Revenue | 2,032,250 | 4,173,720 | |||
Entergy Arkansas [Member] | |||||
Electric Revenue | 494,605 | 496,662 | 1,045,629 | 971,013 | |
Gas Domestic Regulated Revenue | 0 | 0 | |||
Entergy Arkansas [Member] | Residential [Member] | |||||
Electric Revenue | 159,130 | 394,654 | |||
Entergy Arkansas [Member] | Commercial [Member] | |||||
Electric Revenue | 93,741 | 214,375 | |||
Entergy Arkansas [Member] | Industrial [Member] | |||||
Electric Revenue | 97,973 | 209,450 | |||
Entergy Arkansas [Member] | Governmental [Member] | |||||
Electric Revenue | 3,766 | 8,414 | |||
Entergy Arkansas [Member] | Sales for Resale [Member] | |||||
Electric Revenue | [1] | 53,195 | 119,299 | ||
Entergy Arkansas [Member] | Other Electric [Member] | |||||
Electric Revenue | [2] | 84,102 | 94,125 | ||
Entergy Arkansas [Member] | Non-Customer [Member] | |||||
Electric Revenue | [3] | 2,698 | 5,312 | ||
Entergy Arkansas [Member] | Retail [Member] | |||||
Electric Revenue | 354,610 | 826,893 | |||
Entergy Louisiana [Member] | |||||
Electric Revenue | 1,061,689 | 1,072,126 | 2,066,795 | 1,936,202 | |
Gas Domestic Regulated Revenue | 11,099 | 11,308 | 35,337 | 28,015 | |
TOTAL | 1,072,788 | 1,083,434 | 2,102,132 | 1,964,217 | |
Entergy Louisiana [Member] | Residential [Member] | |||||
Electric Revenue | 267,915 | 563,433 | |||
Entergy Louisiana [Member] | Commercial [Member] | |||||
Electric Revenue | 221,740 | 446,667 | |||
Entergy Louisiana [Member] | Industrial [Member] | |||||
Electric Revenue | 368,678 | 721,014 | |||
Entergy Louisiana [Member] | Governmental [Member] | |||||
Electric Revenue | 16,705 | 34,015 | |||
Entergy Louisiana [Member] | Sales for Resale [Member] | |||||
Electric Revenue | [1] | 111,801 | 201,056 | ||
Entergy Louisiana [Member] | Other Electric [Member] | |||||
Electric Revenue | [2] | 70,027 | 90,529 | ||
Entergy Louisiana [Member] | Non-Customer [Member] | |||||
Electric Revenue | [3] | 4,823 | 10,081 | ||
Entergy Louisiana [Member] | Retail [Member] | |||||
Electric Revenue | 875,038 | 1,765,129 | |||
Entergy Mississippi [Member] | |||||
Electric Revenue | 353,689 | 291,212 | 669,432 | 549,655 | |
Gas Domestic Regulated Revenue | 0 | 0 | |||
Entergy Mississippi [Member] | Residential [Member] | |||||
Electric Revenue | 132,730 | 281,073 | |||
Entergy Mississippi [Member] | Commercial [Member] | |||||
Electric Revenue | 117,351 | 227,811 | |||
Entergy Mississippi [Member] | Industrial [Member] | |||||
Electric Revenue | 46,129 | 88,629 | |||
Entergy Mississippi [Member] | Governmental [Member] | |||||
Electric Revenue | 11,452 | 22,300 | |||
Entergy Mississippi [Member] | Sales for Resale [Member] | |||||
Electric Revenue | [1] | 11,776 | 13,769 | ||
Entergy Mississippi [Member] | Other Electric [Member] | |||||
Electric Revenue | [2] | 31,696 | 30,977 | ||
Entergy Mississippi [Member] | Non-Customer [Member] | |||||
Electric Revenue | [3] | 2,555 | 4,873 | ||
Entergy Mississippi [Member] | Retail [Member] | |||||
Electric Revenue | 307,662 | 619,813 | |||
Entergy New Orleans [Member] | |||||
Electric Revenue | 159,602 | 157,455 | 315,420 | 299,800 | |
Gas Domestic Regulated Revenue | 18,844 | 18,767 | 51,301 | 45,411 | |
TOTAL | 178,446 | 176,222 | 366,721 | 345,211 | |
Entergy New Orleans [Member] | Residential [Member] | |||||
Electric Revenue | 58,232 | 122,807 | |||
Entergy New Orleans [Member] | Commercial [Member] | |||||
Electric Revenue | 54,524 | 108,796 | |||
Entergy New Orleans [Member] | Industrial [Member] | |||||
Electric Revenue | 9,267 | 16,838 | |||
Entergy New Orleans [Member] | Governmental [Member] | |||||
Electric Revenue | 18,448 | 36,139 | |||
Entergy New Orleans [Member] | Sales for Resale [Member] | |||||
Electric Revenue | [1] | 6,190 | 19,527 | ||
Entergy New Orleans [Member] | Other Electric [Member] | |||||
Electric Revenue | [2] | 11,623 | 8,511 | ||
Entergy New Orleans [Member] | Non-Customer [Member] | |||||
Electric Revenue | [3] | 1,318 | 2,802 | ||
Entergy New Orleans [Member] | Retail [Member] | |||||
Electric Revenue | 140,471 | 284,580 | |||
Entergy Texas [Member] | |||||
Electric Revenue | 403,486 | 378,488 | 752,426 | 742,415 | |
Gas Domestic Regulated Revenue | 0 | 0 | |||
Entergy Texas [Member] | Residential [Member] | |||||
Electric Revenue | 150,703 | 298,828 | |||
Entergy Texas [Member] | Commercial [Member] | |||||
Electric Revenue | 94,544 | 179,971 | |||
Entergy Texas [Member] | Industrial [Member] | |||||
Electric Revenue | 102,771 | 186,073 | |||
Entergy Texas [Member] | Governmental [Member] | |||||
Electric Revenue | 6,452 | 12,433 | |||
Entergy Texas [Member] | Sales for Resale [Member] | |||||
Electric Revenue | [1] | 25,177 | 48,538 | ||
Entergy Texas [Member] | Other Electric [Member] | |||||
Electric Revenue | [2] | 23,468 | 25,733 | ||
Entergy Texas [Member] | Non-Customer [Member] | |||||
Electric Revenue | [3] | 371 | 850 | ||
Entergy Texas [Member] | Retail [Member] | |||||
Electric Revenue | 354,470 | 677,305 | |||
System Energy [Member] | |||||
Electric Revenue | $ 112,456 | $ 164,956 | $ 260,899 | $ 319,743 | |
[1] | Sales for resale and competitive businesses sales include day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments, and includes them as part of customer revenues. | ||||
[2] | Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market and unbilled revenue. | ||||
[3] | Non-customer revenues include the settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees. |
Revenue Recognition Revenue R73
Revenue Recognition Revenue Recognition (Narrative) (Details) - $ / MWh | 1 Months Ended | 6 Months Ended | 192 Months Ended |
May 31, 2018 | Jun. 30, 2018 | Dec. 31, 2022 | |
System Energy [Member] | |||
Percent Interest in Grand Gulf | 11.50% | 90.00% | |
Palisades [Member] | Subsequent Event [Member] | |||
Maximum escalated power purchase agreement price per megawatt hour | 61.50 |
Asset Retirement Obligations 74
Asset Retirement Obligations Asset Retirement Obligations (Narrative) (Details) $ in Millions | Mar. 31, 2018USD ($) |
Entergy Louisiana [Member] | |
Increase in decommissioning liability | $ 85.4 |
Uncategorized Items - etr-20180
Label | Element | Value | |
Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 7,936,155,000 | |
Additional Paid-in Capital [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 | |
Additional Paid-in Capital [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 5,433,433,000 | |
Common Stock [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 | |
Common Stock [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 2,548,000 | |
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax | us-gaap_AccumulatedOtherComprehensiveIncomeLossFinancialLiabilityFairValueOptionAfterTax | (632,617,000) | |
AOCI Attributable to Parent [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (656,148,000) | |
Treasury Stock [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 | |
Treasury Stock [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (5,397,637,000) | |
Retained Earnings [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 576,257,000 | [1] |
Retained Earnings [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 8,553,959,000 | |
Subsidiaries Preferred Stock [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | us-gaap_NewAccountingPronouncementOrChangeInAccountingPrincipleCumulativeEffectOfChangeOnEquityOrNetAssets1 | 0 | [1] |
Subsidiaries Preferred Stock [Member] | Restatement Adjustment [Member] | |||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 0 | |
[1] | (a) Consolidated net income and preferred dividend requirements of subsidiaries for 2018 and 2017 include $6.9 million and $6.9 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented within equity. |