ETR - Earnings call transcript Q2 2022

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Operator

Thank you for standing by. And welcome to the Entergy Corporation Second Quarter 2022 Earnings Release. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program may be recorded. to President, host Investor like Bill today's I'd Vice Abler, Relations. now, introduce for your program, And Please go ahead, sir.

Bill Abler

Good morning us. joining and thank you for

in forward-looking We we our Drew non-GAAP over comments Reconciliations to obligation Leo will filings. any to effort to review with Chairman who SEC earnings update an measures each and begin the these a now, CEO, results has are applicable found be everyone In and questions, make financial our certain will our results. of the information. ask from GAAP person could which Management release, materially In discuss Denault; are call, in press differ slide today's set that and our included forward-looking will does no also today's to assume more I presentation, Marsh, Entergy's presentation, turn Leo. then Entergy accommodate website. than management not both of statements. statements section can from slide our will which factors, these statements. call number CFO, two Investor Actual to request will of And and due Relations questions. on forth release today the forward-looking

Leo Denault

and favorable Good drove Thank weather sales $X.XX quarter drove adjusted trends per are our everyone. earnings hot morning, you, fundamentals commercial reporting sales. in Bill. and of and increased activity share. we Today, strong sectors industrial supportive second residential Robust and commercial economic

by employment also seeing strengthening counts growing wage are residential and supported We customer data.

half longer-term X% are pace remain balance date tracking as to guidance range on of we and year, growth of of achieve to view XXXX well the results the our to as our Given towards outlooks. X% the upper squarely the our

want of that, receiving country like heat, executed mind, that with that prices, our to improve customer, electric caused on While typical time are with to much I is that across electric We factors for deliverables impacting our the to gas continue higher are high many extreme our our outcomes the strength due quality this proven customers, together natural global financial than even acknowledge we're usage business, we pleased upon of by of business. across as This is and track results. continue record the important to top operational, regulatory, achieve of year. bills build

the As attributes align at of with business, Day, well we Analyst premium Entergy's discussed utilities.

for and of bill the high investments and the annually million eight we prices more our are and pressures over last compared Many they cost made strong actions by what are to natural nearly renewable of customers efficient meaningful facing, past ease have would to our the Given been. impacts today. otherwise investments mitigating generation resources to electric have The and the fuel we gas burden customers help continue lowered take costs. measures of years $XXX

in Power efficient highly to and County like Going further gas generating resources, forward, investments renewables, exposure customer Station, Orange will natural reduce prices. the Advanced

periods of provided Our customers during fuel these per of higher than year million in MISO savings savings for has ongoing participation prices. and more increased $XXX

bills. customers We've additional well that and quartile and alerts. with and customer's we our usage fuel impacts most, are We products payment plans, it as AMI-driven value like To include challenges defer mitigate analytics on building, have centric top extra customers Power Our to placed level solutions. as further regulators recovery on working price today, address bill affordability programs to agreed to meaningful Otherwise, investments the manage with in like deferred qualify. monthly fuel need the we customers O&M LIHEAP customer to delivered performance who to helping for importance Care, get assistance customers. initiatives help

shareholder in residential residential all fees also assistance late programs. credit $XX and waiving customers. for card for customers million fees bill for are donations We've payment eligible We committed

Additionally, on are given lower increase designed utilizing we flex our customers sales to hot program spending strong to industrial reliability. our initiatives and and costs weather, commercial and improve

As customer been has I gas increase the natural in drivers mentioned, bills prices. largest the of of higher one

forward price declines XX months we support ahead, gas over that curve seeing that to indicates Looking the NYMEX significant XX trajectory. the fundamentals are and next months

gas weather can While last at gas prices three to produced has across nation consistent demand in ahead be of per ample tracking NYMEX shale driven the tight, up causing year. roughly gas US natural year, has be curve. Bcf US is day the inventories resources natural that this with long-term plays The production

ramp relief gas increased of supply Permian sight. in prices prices, significant in high rig nearly is reflected represent levels oil shale counts Permian associated year, certainly nothing rig where Texas, The producer shale adage from Increased true. XX%. Haynesville last natural West Basin seen independent for up Over Basin while old gas gas gas Haynesville by customers higher see plays. prices additions. solves in and we've high production high also activity like have the can't counts commodity we control we that And is

opportune with and big energy surrounding deliver resolved for meaningful uncertain comes we the The June, road. mitigate settlement environment. customers in a years the Mississippi down The settlement announced economic the potentially recent Entergy, Mississippi our time In to step cash and settlement complaints MPSC have XX% on system another to relief than to regulatory forward help outcome Mississippi's an provide against risks customer we Our this settlement interest represents in risk, offset bills. our much customers' The customers. improving immediate opportunity would Service while that bill a late to also SERI bills. also regulators worked impacts bill wait an needed provide use way overall SERI. settlement relief is recognized Mississippi helping today fuel with at rather value Public resolving Entergy, from reduce to Commission payment to the

the other beyond commissions on with marker progress sets catalyst a Looking Mississippi, resolution. settlement litigation drive represents opportunity broader a this SERI and to

utilities. all SERI, made Beyond of our regulatory progress was at

in made and Texas distribution as annual Louisiana. case We New generation filings And customers. rate resources have Arkansas, FRP to Entergy, transmission and significant submitted planned serve filed better our across Texas Orleans investments a the reflecting our we've

the also We strong operational quality in quarter. demonstrated

We generation extreme allowed have and diverse reliable power during that deliver weather. of grid to infrastructure customers to us flexible a portfolio and reliably

its the microgrids of serve states hardening all benefits. create month accelerated spaced filing proposed plan out customer temperatures for MISO. a fact, the hardening neighborhoods made and resilience several in recorded $X.X Day, laid billion new including projects All in Analyst Orleans over Consistent load filing. included options New we triple-digit Entergy XX In Entergy, set city. in throughout we years, projects and resilience The system during of June with the initial the peak of next the

the We approval projects. and and optimal of will Entergy, to for work New stakeholders Orleans to later set other Council make with identify projects for these year a seek formal we'll the City this filing

in our are fourth important resilience plan. filings Entergy, in similar accelerated XX-year filings and next towards stakeholder Louisiana Texas engagement quarter steps We at are Entergy, working These resilience toward the and year.

sheet reduce plan improve costs for both Our and customers outages in lower and risk operational reduced will our further terms balance quality. and and our Entergy of storm for

milestone of Palisades in last nuclear to Holtec. important the accomplishment sale This power merchant is Another major the to our business. exit the multiyear plan represents

our growth. to during activity region second in economic was vibrant Overall, Turning the quarter.

our recovery economic indicators strong continue the Our customers. commercial seen pandemic. residential positive from We've for customers show to

Entergy which increased X% discussed, economic Louisiana's And to growth XXXX, regions continue low average. gains. grow a growth serve robust. efficiency our quarter, past we national exceeded for Both the region drive customer expansion keep For unemployment We is improved is example, major and of past Across and development and June. hit the significant residential this industrial in affordability. show X.X% the these we've accounts than gains customers. rate load as Louisiana facilitator which wages XX-year the trends for bills all of more this our system, low Economic energy Further, helps had across a growth. this drives

our with inherent advantages Coast the story, businesses. combined and customers locate new X% from competitive As our conditions annual their we and and at an discussed next Gulf robust driving years. five has customers expand over customers with geopolitical and Entergy region stability existing Day, growth stemming rate spreads unique industrial growth to in expected our Commodity are the compound Analyst a to

five line outlined of we have a growth to we the with years the sight projects. Over robust next pipeline of

compression in potential into opportunity. Port Arthur two of that Sempra LNG we would are projects trains XXX of basis Texas these facility As half already made gas the identified of further with with next Roughly this Entergy plant. new our an expect growth the of Arthur almost XXX project load. pipeline. plans load for its have represent annual strong with we The Phase two electric highlighting additional turbine today, Port XXX decisions investment one LNG XX.X terawatt new approximately entered two comprising sit growth demonstrates trains decade. by industrial load. XXXX, Infrastructure add projects Phase for the megawatts of there megawatts over compression, final would MOU includes hours for the representing load

is Port As accelerate increase be developing renewable of MOU, were If carbon-neutral megawatts expansion, the Arthur resiliency. power XXX% supplied like Projects more manner. striving to it options with solar to outlined to Port industrial solar, energy with of in Entergy new Arthur deployment generation customers Sempra's Texas than to the new a X,XXX highlight in would represent resources. Sempra supply generating grow and

broader their They our it decarbonize to goes from base beyond must well operations. growth. industrial goals, achieve existing customer emissions decarbonization For their business mitigating

emissions decarbonization As goals. representing customers emissions, the previously nation's industrial have majority the we've customers carbon significant industrial our XX% of have aggressive discussed, Entergy's of and

decarbonization, change utility rate a investment For driving unique investors opportunity. in interested represents of Entergy

through accelerated calls heat clean for in Mississippi for program support customers. rate to we was products XXX-megawatt our combined-cycle last to and potential grow plan environmental and the significant storage. tariff further from progress Solar demand Promise OCAPS fully intent. will subscribed. of which fuel Power our savings, clear and Service XXX our fleet long-duration seen benefits diversity continued development May, of a Chicot economic first robust over out This clean offers Public affordability towards online Solar time, already Entergy investment approval Searcy We've greater of focus will customers' in make the resources it will our Entergy any megawatts Entergy maintain the over across the Construction customer all Entergy and to Station This demands, and provide and capacity program When customers. laid this immediately for Texas step quality green Commission provide Arkansas consistent and Day, of and plan growth gains meet accommodate benefits Orange allocation our the quarter, Sunflower Arkansas, comes At demand. plant have drive with County decarbonization intend decade. business, aspects on In signed fuel the customers while Over path resilience our we lowest objective. opportunity Advanced represents reliability move continued approved facility facility letters is our hydrogen-capable broader growth to the this next that X,XXX-megawatt we process. our through customers' the decarbonization growth energy completed. review has and our regulatory near-term Mississippi's opportunity. tariff continued This premier even and the Analyst better. Entergy utility our will EDGE an excellent is electrification state. Station who potential, in When of and considering long-term to for the our Entergy We resources support Green to for to

outlooks. We it. our are our I as to towards proud well are will call as future financial the making excited of over quarter turn we achieving Drew review the now first results and our progress about strength to and

Drew Marsh

Good Thank morning, you, Leo. everyone.

a start XXXX, results. we've said, second strong had Leo our by As quarter supported to

As earnings you three, slide were per can share. see our $X.XX adjusted on

start are included weather. growth Our our us hotter industrial sales enabling and is longer-term benefit and customers outlooks. much we by spending normal strong growth to affirming the than our results to and to year flex retail fueled This guidance

range. expect the the half we top For within of results XXXX,

heat. temperatures and been partly out details of FERC. EWC items to more strengthened quarter's risk had these see quarter. Palisades, driven Slide partial degree reduced XX% states adjustments EPS record our issues system addition of the drivers in you've regulatory These experiencing that earnings which strong, customers cases the and following settlement sales Within sale recovery two the days included securitization On developments were All you'll higher closely, while also in X, rose provide hot Retail above-normal We balance funds results Texas benefits specific receipt weather. adjusted area, cost than for storm service included service the energy saw our normal. the with release. our were In cooling our areas results, sheet. of on by on the for at

growth We higher grew approximately expansion existing effects the even well also the straight sales and second Industrial quarter, including new strong X.X% saw of excluding after weather. as customers. to for as sales

For LNG cogeneration to seeing industrial alkali of the our the customer customers were major this also segments quarter, and increases. one-third chlor many higher, comprising with Sales growth. increased total largest of

X see industrial that growth outlook the underlying remains strong. on Slide You our can fundamentals

to being In year, addition cogeneration was higher they expectation. than industrial last our than The sales driver were guidance higher also sales. largest

sales we don't in reminder a cogeneration our As outlook. on rely above-average

achieve represents beginning we higher increased O&M, higher effects the operating the on the delivery experience. drivers to saw merchant For improved customer-centric This EWC the Slide in X. summarized as also continue by spending of business that well nuclear for customer for part customer for shutdown as plants. are from our results flex quarter, the in investments sale referenced, Leo of ongoing and that The outcomes affordability, The expenses be to power service. customer our and of reliability on other driven spending,

Slide $XXX a year was last quarter ago. million, a XXX% were to X. gas natural significant same prices, for the quarter year. than driver was which cash to most compared The more than the higher Moving flow Operating decline

by $XXX million the Our increased quarter. deferred regulatory than more fuel asset in

among steps their collections customers things discussed. delaying bills, in fuel than fuel have We to of taken have we the that costs million $XXX SERI help settlement more Mississippi including and in manage other

is the calls decline. prices fundamental said, seeing indicators forward we to that for good curve outlook. support news the are also this gas we natural As And

$X.X $XXX million credit as That through storm move X. and Turning to summer. I'll the liquidity, billion. our liquidity start on which at is net is Slide in with includes strong we escrows, which important

in we During the both Texas. securitization proceeds received and Louisiana quarter,

guaranteed The guaranteed that value previous and be savings done $XXX higher. customers, amount eventually could have our the is securitizations, about we for with have Louisiana from As we created sharing securitization structure. efficient million

As you the XX% share Public the for Mississippi SERI know, with their we reached settlement the Commission Service cases. of

If on all an settlement, and impact on you share. settle $XXX with moves Mississippi million, are when such structure, customers. as refunds the would The financing are other cash same would terms, of we -- total cost temporarily settle if to parties to that basis. capital to including FFO able able ROE the and Those elements would remain ongoing

not have parties. with We all settlement reach

business from long-term effectively yet So exceeding X% decide through that or adjusted were X% EPS. fund XXXX. and executed today. we lower and shows offered million to be equity in our Slide now drive more and million in S&P $XXX quarter, our spending in financing principles a us. and green, including be equity found achieving party the remain the how we financing our objectives, to ATM without would of settlement which response is In a slide a projects the guidance affirming also we the with X. in how knowing fund our for than provided significant flow social to a issue our revenues strategy. we the equity allows that which website. would have program. leaves engaged to plan a our against the framework, are growth the the the of published easily outlook, end June, frameworks any program. XX Investor I and reduced of Global to ATM XX% remaining transition Regardless by our we update and full That our opinion eligible they opportunities to details, at framework Relations progress of of alignment We And We and in provide and on we thorough to funded. objectives in of directed us these instruments. could plan affirmed that it's amount types reduced have opinion resilience to pandemic. through of to funded, second little a cash summary section energy In financings picture the can Analyst needs through between like be XXXX, highlight be Both debt, sustainable $XXX significantly Day front achieved equity cost same, the shown clear have sustainability A which accepted second our our quietly to our

For XXXX have had year. half noted, we a first as strong of the

improve top our costs benefit the year includes This and customer with we expect spending affordability of to Now the to half to results reliability, to the are consistent other years. in been and several initiatives, experience. guidance the where we've with last our customers. increase be Even for in O&M these flexing we range, our

of Regarding utility customers the technologies for for these development will and avoidance decarbonize tax are is flexibility carbon region long-term the benefits a production technologies. reflected economic and week capture outlooks, like hydrogen longer natural sizable encourages CCS are the production that term industrial exposure support leveling the and to greater operational to help tax of Overall, hydrogen long-term act customer which note customers Act. else, decarbonize. is and will positioned gas act's and our allow potential and create their not credit our one And investment renewable benefits normalization, clean that electrification act part Entergy's uniquely are with optionality. emerging green our to of for ownership playing provides into economic support everyone the in prices. through transferability recent development the Inflation review. reduce yet Like we item help customers. we about Reduction ability nuclear, will renewable our credits optimistic The field By

benefit tax. in alternative customers of production bill after we most the minimum year, the tax from of excess expect in should their that a our first see Finally, credits

flow largely quality. that demonstrating after the implementation. summary, first but with neutral authorities work In we'll we of federal our cash we regulators course retail looks year, law we how as act to are a discussed see financial need Day, At the on the Analyst final For strong positive. the Entergy and and see

unique a organic have opportunity and significant We and sales to decarbonization. growth due growth industrial

a invest grid. and plan have in clean improve resilience renewable robust of and We our the to resources

same We X% X% achieve also sheet on balance the And quality risk. to to at have a reducing and growth. EPS time, we're focused plan

all remain our and to on delivering they is always our While it, And will do, to with answer at we we our record the available commitments remain a done getting continue team employees track of Entergy plan customers on focused success. that prove that stuff to world-class questions. now

Operator

Certainly. [Operator Guggenheim. Instructions] the from And Shahriar first our of from line comes Pourreza question

please. question Your

Constantine Lednev

Leo good Hi, here team, actually morning a for Congrats quarter. on and Constantine it's great Shar.

Leo Denault

Good morning.

Drew Marsh

morning. Good

Constantine Lednev

to strong XXXX assumptions results guidance. of in on quarter the some changes wanted and start the I off for the for

You're year category, in offset how on you in half, have the keeps for the now maybe the And in that whether the looking And strong. assumptions recurring potentially remainder in top this and the big obviously, XXXX? set, growth elements slice, just it for a O&M base and does how a of EPS and curious, flex but into contingency. that XXXX carries

Drew Marsh

Drew, Leo, can and start This and in. Sure. I'll is add

a as would be Not we expect think, of on So the I you we're we're top that customer in say growth planning of the half thinking would see basis. it's range, that impact the and base. doing, continuing we about things expect our to the growth, lot I as all the certainly that from we would to encouraging are of -- a to is, say

we expect on is cogeneration my basis. of referenced remarks, normalized would ongoing I in more rate, that a an As And cogeneration. some

more that. referenced you're that In costs, do O&M what we have specifically We some a terms there. have come the you much of, do with sales. seeing That's of, obviously, along the chunk higher line items

our a we're release it, the of outlook part about for is items. what contact the is help a our Visitation so we in press O&M We other this of customer those and as working investments, in help components experience, works, investments week. And customer also like guidance to initiatives well investments our improve is management, We some centers that talked That that, incremental Leo customers big of talking some at to and operational also in last XXXX, customers and reflected and out as have point referenced, to had things help the the couple of out. in particularly, O&M, piece the to there. reliability, some the things time. in you see of doing

would So out say, ongoing is continuous beyond, to there's derisk XXXX working a pulling little and of be creating are on opportunities that XXXX aren't lasting although, that continue number of by to investments today, basis. a that, there bit an I improvement, specifically they more while should

Rod, have to so, add if don't Leo you that? or know I anything, And you don't to want

Leo Denault

customers by We're years fair. using year results the reasons, industrial that to now, outlook. those the load our that that a sure, I beginning for see and think, this growth of and encouraged but lot only we're for to make the things to of We're -- here come, why right support should that's year. not continue, our doing certainly

Constantine Lednev

And That's, Mississippi FERC. of process litigated care for The obviously, at helpful. on a large took settlement dispute. SERI the of Excellent. portion the

one within and set? think has those kind here? about of below X% their midpoint, X% above -- currently guidance, the of are kind parties forward the longer-term How or structured currently we the should willing that to settlement the they're less the to think impacts accept comments. they're process, of Where options fit, terms, parties, but are in currently as major other going I

Leo Denault

you process out them Drew, Rod, you help why on don't the that. can give and then

Rod West

Yes.

it to those the stand, are this with we process those you on reasonable know further, it their a that where settlement conversations was in fair opine the we're trial jurisdictions to and relates stance, note, the or with disclose the and not our ongoing. in was we're filing, conversations, should Mississippi constructive other of each individual the of settlement. framework -- So and jurisdictions. jurisdictions Mississippi but interest. anything public for they with FERC that position negotiations And took thought and ongoing in but position, constructive active they position, from to a will those their in negotiations And standpoint, staff, their made response public as that public each is the notwithstanding that's our a that stated I conversations, the

Drew Marsh

we collective reflected since And Mississippi in of we settlements, once our ongoing have the have structures And we've or comment the some outlook on ongoing discussions, else then on wouldn't financials, this or everyone we're ROEs, anything time. the an do basis. capital regarding -- with we beyond that at

Constantine Lednev

taking Perfect. Thanks Okay. for my questions.

Leo Denault

Thank you.

Operator

Thank America. question line of of from you. from Zimbardo the And next comes our Paul Bank

Your question, please.

Paul Zimbardo

morning Hi, you. good and thank

Leo Denault

Paul. morning, Good

Drew Marsh

Good Paul morning,

Paul Zimbardo

eligible to construct. how And the about regulated sounded understand helpful. That just believe that could in tax make nuclear you draft would be regulated correctly, sure you the be under talk if I credits. just And IRA, production could work assets it will the like the for

Drew Marsh

this is our that on Paul, reading Sure. Drew. the We they of think eligible do act. based are

compete do in their MISO markets. our in every units bid They power know, nuclear the day. you As

a participate price in market netted like off that we But busbar through price so wholesale the the because every comes and company gets do rates ultimately a And it we day. normal in regulatory process. the that have every power revenue day – wholesale markets to the and stuff that's

And believe so we'd that's how eligible. be we

Paul Zimbardo

of Nelson Big could just requirements and like coal. then talk how accelerating case coal it over rate to the seems And related? Cajun, And dates makes That timing sense. some for broadly in shifting to the if changes more Texas about new understand. renewables could and the there. And I lead filing target stringent NOX EPA you you're Okay. and

Rod West

It's, out and capital XX% you'll the and to direct and with and benefit year, $XXX schedules for around incorporate end the procedural reflects distribution transmission, some I Page certainly mean and our out the change just is it's a with the rate the of can in as XX materials you Rod. is move our Texas XX.X%, equity million our as and case schedule case adder base in performance the But October laid ROE procedural to reflecting proposed laid plan. XX.X% XX%. Between through – other I the up see frame our our I'll we the assets bps of continuing filing. rate about riders generation XX midpoint OCAPS of And ratio context.

Drew Marsh

this Yes. Drew. And is

benefit. economic I'll piece, in not high say things And coal that retirement. in capital that factor could already make very as timeframe appetite to not and of lot that We coal the on significant contemplating that they short become referenced wouldn't right prices now. soon significant On to it's could with say that those right that accelerator Paul But of Texas accelerate investments there's the those the come us make of much within that. our gas some an are that would certainly and course be come satisfy retirements large you could a cause in a those investments in coal a in of out to plants I really case do facilities now. of you timeframe materialize rules know – order new that to with compliant If the we're

if and when the those would a that coal time our consideration plan about. come rules of So line be on

Paul Zimbardo

you. Thank Okay.

Drew Marsh

I'll coal Thanks, our not plants We control one Paul. today. do a have more add And technologies thing. lot on of

so there incremental And be us. of investment would a lot for

So I well. just clear make that sure that's as

Paul Zimbardo

you. Yes, thank

Operator

And JPMorgan. line our the of Jeremy next Tonet from comes from

please. question, Your

Jeremy Tonet

Hi, good morning.

Drew Marsh

Good morning.

Jeremy Tonet

and on that Louisiana you us takeaways, as Texas front? want this any other about think resilience off Entergy, there. or especially Just initial share with with Have the we Orleans there and reactions could filing New start to been

Rod West

environment been current the details economic the filing to in what's build reactions the investment. Obviously, has Initial certainly are impact. Rod. given the It's all actual the constructive. pace And of the

you if to additional conferences technical We set expect is the council going will.

probably the But constructive. the But filing facing least be near-term are right council's we're that fourth. schedule, inflation constructive on some council and line But fall into the We now the have the on one with share council. at go here. reaction the But ultimately efforts a the later addressing end XXth prices to of the focused up taking procedural has quarter you'll of been is third of direct gas with for in that the see customers on a in thus in show might are will the kind -- where impact think of that's us thinking from let's clear, And Orleans. reaction our more schedule believe make it's laying the later, we mind out up in far where our the month. the the this we of, near-term I challenges New and

Jeremy Tonet

of the it. That next of Got kind was Yes. part here. question the

customer prepared talking as about talked remarks conversations in about there. higher you bills Louisiana Just in your

so CapEx type see resiliency you role there? the talked do you inflationary pressures about and at And on particularly this you against -- the for given what large conversations see playing front that do of

Rod West

the we Orleans in with aligned why Louisiana We resiliency are objectives us changes And We commission nothing of timing -- But we're and better this to refine much on focused relief the October case other near-term, are back and they an with that opportunity expect very we've plans to plan. give focused been resiliency to to the conversation. October also very Louisiana the our resiliency Louisiana aligned filing our the on are this resiliency for moved why point. the that There's New current on we but on commission. about providing make same the benefit to the conversation. jurisdictions, in our to make I'll the our customers much with

in way timing is our Louisiana then. we plan resiliency the out for spend and in which the laid by unchanged capital both near-term So

indications season, remain and as formula get into regulators to work the more the aligned much early but with objective of come plans on we rate we through the further resiliency. -- the So rate summer and are still the very hurricane through the

Jeremy Tonet

Got to equity one I here, just as could That's And in if relates and very a XXXX. it helpful. it. last needs XXXX

ATM satisfy you just table, this broader the here? about is While needs can considerations here, speak these could recycling wondering this point, asset if at to the on how you think or

Drew Marsh

Analyst it's thanks We Day. about we Well talked talked Drew. Yes. -- at to Jeremy, that

not think So what discussed than at different Day. I the there's really Analyst we anything

And depending idea. to go an equity about it's which a discussed us It's there's past. -- necessarily go financing between the in capital easy how the this to like not You markets as markets, the not it's in we've difference you public but public know, private valuation and capital not markets. causes on down it capital like the explore track

it. there more lot longer risk could could take it to be So a

those financing we're what are that calling to have at about same about more up time. when So thinking strategic we're strategically think we things the they because line

Jeremy Tonet

helpful. Got will leave That’s I there. Thanks. it.

Drew Marsh

you. Thank

Rod West

Thank you.

Operator

the Vertical Thank Research our from you. next Arnold of question Partners. from Jonathan comes line And

please. question Your

Jonathan Arnold

morning, Good Hi. guys.

Drew Marsh

morning. Good

Jonathan Arnold

that you or you've of June deferred million you're balance the to Can the particular I second is what that quarter through extent think. fuel that what of that sheet? I just on proposing about mentioned tool do you'd Is this ask -- $XXX just recognize

Drew Marsh

to terms have the regulators we fuel. what proposed retail in deferred delaying That's of of collection

sheet… balance the on So

Jonathan Arnold

sheet. To the balance

Drew Marsh

proposed the have That's terms what of in we retail collection to regulators of fuel. deferred delaying

the on you second the end all the fuel. $XXX of So quarter incremental the balance sheet of million deferred have at

be is might it a the until it some And And some being Louisiana. of of fall so it next delayed year. until in of bulk -- delayed

we're about in jurisdictions. think $XXX million-ish other and in Louisiana smaller amounts I

Jonathan Arnold

rest catch across sort of the we the little a sort up the proposal portfolio quicker. in see fuel deferred year current So, first to the that's should of that half of from and of the

Drew Marsh

I I maybe a even that That's August and of there. in that pretty June is recent. say Well, July would bit there's think deferrals, little

on going think the pretty we're more bunch we continue see that Jonathan you're I the to into we're I'm fall. the about current point guess would not to delaying this most I on that. of at thinking how summer -- and are way asking expect a I are whole through not we of So,

Jonathan Arnold

frame on then doing could of mitigate some that bit the and biggest the try that about other other a to strategy. of of just little you're quantification us what but of some guessing And around just Is of the in is fuel probably thing? curious for I'm the things are it deferral pieces maybe the pressure the customers help you Okay. sort sort maybe put context number?

Rod West

And where credit in Orleans. of to Rod. classes. way impact a the convergence, different by gas we're fuel is the voluntarily jurisdictions $XX recovery usage New during the moratorium than that that capturing through is where Leo Leo customers bill relief disconnects high other single give we jurisdictions. see biggest million offering prices assistance is on on this of in up card There's that our mentioned, gas perhaps New top Yes. be are reference to New Louisiana of his would I across the what believe out in different opening or way the a across of But high jurisdictions. waivers on other Orleans the coming through what deferral we're is high and monthly some Louisiana There's -- basis. jurisdictions programs customer made as fuel a and do bill for impact payment as mechanisms We're and towards waivers programs our with working fee Orleans the that Leo financial -- impact intersecting particularly that walked the offering our this being fee comments late some objective

are customers efforts these the of support itself call to with the of through play that relief season. out end our of expect short-term for regulators the so our to the And part sort on and answer cooling our we

of understate So, with on where the regulators package. don't our strategy in And in I to long benefits that behalf impact greater we the referenced over October-November for what also bills in timeframe, of relief want on ongoing so-- sector Drew significance addition we'll revisit the terms our bill that the investment of path that customers in story robust customers far industrial long-term have the lower to haul that growth customer that are

Leo Denault

near-term customers of for The we've probably bill certainly is to biggest I only relief. bang the is would had SERI Mississippi the the for Jonathan settlement add in buck that that terms thing

Jonathan Arnold

remind SERI Could us you just [indiscernible] the

Drew Marsh

to the to we $XXX going some of million we've benefits with mean of associated that we add Louisiana was I that did done dollars big them. got Jon securitization number customers. have a things that there's I

customers about environment. We high that's gas our price gas hedging program these to in haven't been the talked beneficial really

to things number done a there's that of we've So help mitigate customer bills.

Jonathan Arnold

ask on Great. of about into the goes regardless SERI then parties what's that when not And Thank flows? you. agreement Could effect having settlement the with benefit that that correct? reached I just timing

Rod West

to is FERC to customers ratify but is November, -- Mississippi that by settlement seeking essentially benefits that that and asking already taking we're put correct. Yes in We're place. steps -- approve the

time frame is from a FERC So November -- but perspective. the

Jonathan Arnold

And assuming it Is you piece? the then well discrete impact you this reflected or -- maybe went finally, in Okay. guidance. others the is just down that trajectory, Mississippi a the just Mississippi of similar settlement aspect gross

Drew Marsh

grossed-up Mississippi, the it's inclusive that given discussions. up an but a ongoing now, got we're assuming it as where Right have not commenting same beyond everybody end element, might about we

Jonathan Arnold

got But Okay. at you've least that? that in

Drew Marsh

Yeah.

Jonathan Arnold

much Okay, Thank great. guys. very you

Drew Marsh

Thank you.

Operator

line question next our the Arcaro from And you. from Morgan of comes Thank Stanley. David

Your question please.

David Arcaro

good for taking morning. Thanks much so Hi, question. the

Drew Marsh

Good morning.

David Arcaro

morning. Inflation that stage and your Do on far? additional curious view have good within unlock could that renewables you've rate proportion versus I how thus front this could competitiveness play the hi, a been at going it Act. you the Oh, was to improve renewables whether base the on Reduction opportunity much forward just the assuming

Drew Marsh

have goes that have more some up equity don't capital. the tax assuming do with but allow of you field through, partnerships numbers efforts. the -- can and does have this go and find I through that can David, that friction will to that tell don't the deploy to do playing eliminate we do might that I ahead We us believe right level the normalization us. not it to associated it all for We we now say I we Yeah. go

the optionality from those accrue If improvements utility through the more assets wouldn't customers benefit we as think because we they increases the I said with problem a ongoing to from perspective. to can The storm flexibility. that I get third-party, up an in positive my a assets, that respond of around to come a ownership from the operational they'll with. a are remarks don't will third-party would the operational creates perspective, benefit So accrue all there's situation have also necessarily our quickly, work customers. like. It Those

of were disadvantaged are of things. So that benefit ownership benefits utility those there's customers lot harder now full before. But the a structurally the will associated whenever get with we

number now. don't So accruing customers for be over we you long-term. think the have will I exact that But that right to the

David Arcaro

you to it? there that see of out the that's see a flow that's Yeah. Great. planning And wouldn't it like the at be way side of that incremental had you're also that It as Is flow helpful. Thanks. at on such tax bill an the things. the think there cash level least sounded about That's you AMT cash been mentioned to was neutral. floated already cash drag

Leo Denault

David, think this don't case. the is Leo. that's I

able get the credit the the against the be allows neutral. think AMT I that transferability that to plus, we'll to be to it's to of just credits the us utilize able case for

Drew Marsh

element close would the referenced Yeah. nuclear I credit out there we XXXX. will would that's tax starting that those ongoing A&T an There tax that credits our And basis. from a the pay start add be bulk the And first I of between is the had and until timing year. XXXX. attention that's to to in

to offset have gap taxes. So XXXX to how news there's an good figure it should is we'll that that be out deferred through. to work The

rating should to go work talk But our to like. that bill means We work we that. with retail to through So through and get rate agencies up. the base that regulators got got final the

David Arcaro

Yeah.

Thanks. Okay.

that does assume able collect and credits So nuclear you you're the that get cash that essentially what tax them drag? that's helps AMT offset that to you

Drew Marsh

correct. Correct,

David Arcaro

Okay, Thanks great. much. it. Got so

Drew Marsh

you. Thank

Operator

you. our next Thank from And of from question Wolfe Paz the line comes Research. David

Your question, please.

David Paz

morning. good Hey,

Leo Denault

morning. Good

Drew Marsh

David. Hi,

David Paz

place mechanisms the have just Just come it you down? on Grand Gulf online? us, down wanted since you. according remind in been for so and you in I costs data, Thank know do XX. of then maybe to When it's why been July it back And just terms to forth? to NRC replacement the expect has

Leo Denault

Yeah.

issues. will had as equipment operationally far the details, technical get As couple we into that of pieces a of I David, but had

too. those after had the lot the the online outage to its had backs year's is, just happened Plants now run ongoing. longest we're record about roll and point So replaced will we refueling Bend last to because ready quickly, talking I equipment and the online on and run. we recent issues a of of it today fix of continuous nuclear, be while plant River to offline station Kind that's out, should take where pretty

So them. congratulations to

don't if I as – far you know, As the want Rod, to mechanism

Rod West

of a FRP. formula the flow-through rate operating of where the part of are Yeah, plan plant monthly cost it's the

Drew Marsh

back to are unit the contingent. the And operating companies contracts

So would and every do fuel day they as that would through just purchase the power the costs. flow replace they market the in

Rod West

each individual the Of – of

Drew Marsh

the operating individual each of As companies.

Rod West

Correct.

David Paz

Got it.

Okay. Make sense. Thank you.

Drew Marsh

Thank you.

Operator

you. our next Michael question Thank Sachs. the from of line Lapides Goldman And comes from

Your question, please.

Michael Lapides

Rod look rate will meaning ratemaking case how perspective? thinking and Leo quarter, a hardening grid don't you think Louisiana and curious that or great thank on a will the in is – do transmission how a states will what that How the in the that existing but in how and process-wise, in – there proposals this structures question. you And the from hardening does know, that how Louisiana docket you're taking guys. Texas, system process or if just about one, with recovery plans Hey, rate for the recommending Congrats I the DCRF in that are place already Texas? those and general mature? interface formula will and the I'm

Rod West

be being Hey, in the the we the and so $X mechanisms. Analyst resilience that and -- XXXX, the the in of place the in through filing planned resiliency what if the talked timing that the to but be would case. as the be plan of we around recovery Texas regulatory And the into Michael, or In seen case a where of program the say Louisiana it spend. And is a we how chunk in from currently October. the described OCAPS that Michael, $X worked in we sizing, Rod. Louisiana, remains depends because but the commission thinking timing we about process and the it to can accelerated a Day will becomes, CapEx little same. timing way and about existing we that million different again, And thinks for we the recovery we whether depending around given we an dependent anything we can filing of that through resiliency be to in in the of than the existing upon recovery not function thinking OCAPS and needed agreement rate do of dynamic And had Texas, sequence, Texas, to that sequenced there's back of resiliency chunk state the in need way question covered the at – spend capital Louisiana want if would behind around else. Day, for pace whether and rate Again, think capital to accelerated a on for a that's would that the resiliency the going pushed capital our larger remain radically we go make is how there's million our FRP through we're capital Analyst – about through would with it begin commission around upon we on then fall Louisiana. the when a -- cost T&D in the that us filing that we it, and was bit going how tweak both mechanisms. and We through Texas, the through riders, thinks our pacing is it a the is certainly customers point riders, or a those shifted accommodate need to determine we think -- different anything existing through it's flow

Leo Denault

tweak the already the Rod is kind fits nuance you years is Rod's standards a mentioned, word, the Rod depreciated that that we that And to getting how fully new out as that's add addition billion this standard want that mechanisms do might replacing said, There regulatory regulators in depreciated. are yet size-wise got mechanisms. to fit the assets that we that's jurisdiction look replace not have concept, we Again, to, sure of, to that pre-existing how regulatory not just tweak, Leo. dollars with where the for And recall, here across Michael, is that probably as as the for mechanism. equipment, sizing, that's to around the the underneath they process them ago at. those that same that's need again tweak but the that use lower And we to to needed we we're with out cost $X in We've the plan need But the The we're levels $X.X meters we been Rod's placed well meters, dynamic current worked, different know, jurisdictions customers the you and same got to have in built regulatory meters -- that precedent you -- along service our with billion equipment improve jurisdictions. added when as the going as future. same. AMI make as use taking I'll across are were depreciated. that to to equipment was fully XX across industry to but in that going as every supporting property we've under get throughout that recover publicly word, existing are an to we're fully replacing

Michael Lapides

that, you Do and Leo thank you Rod. -- need for

Just on follow-up Louisiana the side. a quick

rate simply for in rate would to Do that's existing a earn You argue, making, have plan, structure the authorized the a the right? places worry is meaning to harder Louisiana, lag? the lag using that if you would right change somehow I maybe get forward-looking construct one simply you a guys? you now formula don't of more add in to Louisiana,

Rod West

including the And the customer the concern. CapEx benefits a our guys. primary mechanisms always for stakeholders It's you to for match is objective and with recovery

that constant of Michael. our through So and plan the mechanisms, capital as recovery we forward-looking a yes, work is tension view

very much is of part a it So conversation. the

Drew Marsh

good some Louisiana, And we to have rates AMI side, get Leo contemporaneous precedence a the assets mean, able COD. they generation were I the has history on more course long into talking was around when Louisiana of recovery. in dockets and to capacity this. And of about AMI getting we get

there this think differently but I could Louisiana, we how work certainly in echo is concern. of So examples Rod's

Michael Lapides

it. Much Thank you appreciate it. guys. Got

Rod West

Michael. Thanks,

Drew Marsh

Thank you.

Operator

And you. comes line Patterson from Glenrock. final of Thank our question today the for from Paul

Your question please.

Paul Patterson

hear Hey, guys. Good voice. to

earlier, commissions no at to they objected November all. approval there Is FERC back of state reason none at least the the we approve Well, think happen that assuming any SERI settlement it approval should for Just any can't the the like why to the the procedurally seemed or settlement, how that it? about party. potential

Rod West

other stakeholders overall to reduce this I tell around this tends to FERC Yeah. SERI usually in don't needs FERC when to to an there's sensitive and drives and benefit respectfully. that to We the where it. the to the and noise it's what resonate objective get don't particularly get we're customers certainly certainly and for trying we're associated but risk instance it that procedural the their potential us they're FERC with we schedule to say tell -- be,

So has we're as as imagine as in our first concerned, interest with as weaving it's docket, in as possible other stakeholders which but are far than to might we always you our more soon contemplate. Entergy of those

grateful of is in we're the beneficial FERC whatever for Mississippi. accelerate So settlement customer do to consideration able this to

Paul Patterson

public bifurcating are parties sort suggesting of of Awesome. And in or realize -- that if favored I this. the terms me, And having. clear general, not you're their what if documents correct the with discussions and most just some up some then splitting of I the mean in what or have nation -- I'm on the completely of But proceedings I'm wrong -- my the you.

subject most the the favored favored Is that nation there's not to most the provision a is if portion nation correct? adjustment. in portion With that settlement, litigated

Rod West

right. I think you that got

Paul Patterson

Okay.

Okay. for Thanks me. it That’s much. so

Rod West

Thank you, Paul.

Drew Marsh

you. Thank

Operator

program. the any to today's the I'd hand Thank question-and-answer back like Bill further of does for remarks. program to session you. This conclude Abler

Bill Abler

and morning. thanks this Jonathan, you, Thank to everyone participating for

provides evidence important on a and to of statements Form as key milestones be our filing prior page and due maintain the on is the Other SEC and about our generally would sheet a website report part of of our provides that Entergy's X web that date to additional regulatory strategic occur which conditions Events Also of in accordance we statements. existed August details Information, provide of quarterly accounting that Investor accepted our at more updates as and called Our execution. the XX-Q XX-Q in financial balance our proceedings Regulatory reminder, financial date disclosures Relations on reflected with principles. the

concludes considered all information, should very exclusively for information company on this may relevant call. rely Thank of much. information. be material this our some you While And this not page you

Operator

the Thank participation conclude conference. and your you, in ladies for program. gentlemen today's This does

day. Good disconnect. now may You

Entergy (ETR) 3 Aug 222022 Q2 Earnings call transcript