(Mark
One)
|
|
X
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
|
For
the Fiscal Year Ended December 31, 2009
|
|
OR
|
|
TRANSITION
REPORT PURSUANT TO SECTION 13
OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For
the transition period from ____________ to
____________
|
Commission
File
Number
|
Registrant,
State of Incorporation or Organization, Address of Principal Executive
Offices, Telephone Number, and IRS Employer Identification
No.
|
Commission
File
Number
|
Registrant,
State of Incorporation or Organization, Address of Principal Executive
Offices, Telephone Number, and IRS Employer Identification
No.
|
|
1-11299
|
ENTERGY
CORPORATION
(a
Delaware corporation)
639
Loyola Avenue
New
Orleans, Louisiana 70113
Telephone
(504) 576-4000
72-1229752
|
1-31508
|
ENTERGY
MISSISSIPPI, INC.
(a
Mississippi corporation)
308
East Pearl Street
Jackson,
Mississippi 39201
Telephone
(601) 368-5000
64-0205830
|
|
1-10764
|
ENTERGY
ARKANSAS, INC.
(an
Arkansas corporation)
425
West Capitol Avenue
Little
Rock, Arkansas 72201
Telephone
(501) 377-4000
71-0005900
|
0-05807
|
ENTERGY
NEW ORLEANS, INC.
(a
Louisiana corporation)
1600
Perdido Street
New
Orleans, Louisiana 70112
Telephone
(504) 670-3700
72-0273040
|
|
0-20371
|
ENTERGY
GULF STATES LOUISIANA, L.L.C.
(a
Louisiana limited liability company)
446
North Boulevard
Baton
Rouge, Louisiana 70802
Telephone
(800) 368-3749
74-0662730
|
1-34360
|
ENTERGY
TEXAS, INC.
(a
Texas corporation)
350
Pine Street
Beaumont,
Texas 77701
Telephone
(409) 981-2000
61-1435798
|
|
1-32718
|
ENTERGY
LOUISIANA, LLC
(a
Texas limited liability company)
446
North Boulevard
Baton
Rouge, Louisiana 70802
Telephone
(800) 368-3749
75-3206126
|
1-09067
|
SYSTEM
ENERGY RESOURCES, INC.
(an
Arkansas corporation)
Echelon
One
1340
Echelon Parkway
Jackson,
Mississippi 39213
Telephone
(601) 368-5000
72-0752777
|
Registrant
|
Title of Class
|
Name
of Each Exchange
on Which Registered
|
Entergy
Corporation
|
Common
Stock, $0.01 Par Value – 189,198,163
shares
outstanding at January 29, 2010
|
New
York Stock Exchange, Inc.
Chicago
Stock Exchange, Inc.
|
Entergy
Arkansas, Inc.
|
Mortgage
Bonds, 6.7% Series due April 2032
Mortgage
Bonds, 6.0% Series due November 2032
|
New
York Stock Exchange, Inc.
New
York Stock Exchange, Inc.
|
Entergy
Louisiana, LLC
|
Mortgage
Bonds, 7.6% Series due April 2032
|
New
York Stock Exchange, Inc.
|
Entergy
Mississippi, Inc.
|
Mortgage
Bonds, 6.0% Series due November 2032
Mortgage
Bonds, 7.25% Series due December 2032
|
New
York Stock Exchange, Inc.
New
York Stock Exchange, Inc.
|
Entergy
Texas, Inc.
|
Mortgage
Bonds, 7.875% Series due June 2039
|
New
York Stock Exchange, Inc.
|
Registrant
|
Title of Class
|
Entergy
Arkansas, Inc.
|
Preferred
Stock, Cumulative, $100 Par Value
Preferred
Stock, Cumulative, $0.01 Par Value
|
Entergy
Gulf States Louisiana, L.L.C.
|
Common
Membership Interests
|
Entergy
Mississippi, Inc.
|
Preferred
Stock, Cumulative, $100 Par Value
|
Entergy
New Orleans, Inc.
|
Preferred
Stock, Cumulative, $100 Par Value
|
Entergy
Texas, Inc.
|
Common
Stock, no par value
|
Yes
|
No
|
||
Entergy
Corporation
|
Ö
|
||
Entergy
Arkansas, Inc.
|
Ö
|
||
Entergy
Gulf States Louisiana, L.L.C.
|
Ö
|
||
Entergy
Louisiana, LLC
|
Ö
|
||
Entergy
Mississippi, Inc.
|
Ö
|
||
Entergy
New Orleans, Inc.
|
Ö
|
||
Entergy
Texas, Inc.
|
Ö
|
||
System
Energy Resources, Inc.
|
Ö
|
Yes
|
No
|
||
Entergy
Corporation
|
Ö
|
||
Entergy
Arkansas, Inc.
|
Ö
|
||
Entergy
Gulf States Louisiana, L.L.C.
|
Ö
|
||
Entergy
Louisiana, LLC
|
Ö
|
||
Entergy
Mississippi, Inc.
|
Ö
|
||
Entergy
New Orleans, Inc.
|
Ö
|
||
Entergy
Texas, Inc.
|
Ö
|
||
System
Energy Resources, Inc.
|
Ö
|
Large
accelerated
filer
|
Accelerated
filer
|
Non-accelerated
filer
|
Smaller
reporting
company
|
||||
Entergy
Corporation
|
Ö
|
||||||
Entergy
Arkansas, Inc.
|
Ö
|
||||||
Entergy
Gulf States Louisiana, L.L.C.
|
Ö
|
||||||
Entergy
Louisiana, LLC
|
Ö
|
||||||
Entergy
Mississippi, Inc.
|
Ö
|
||||||
Entergy
New Orleans, Inc.
|
Ö
|
||||||
Entergy
Texas, Inc.
|
Ö
|
||||||
System
Energy Resources, Inc.
|
Ö
|
SEC
Form 10-K
Reference Number
|
Page
Number
|
|
Definitions
|
i
|
|
Entergy's
Business
|
Part
I. Item 1.
|
1
|
Financial Information for
Utility and Non-Utility Nuclear
|
2
|
|
Strategy
|
3
|
|
Report
of Management
|
4
|
|
Entergy
Corporation and Subsidiaries
|
||
Management's Financial
Discussion and Analysis
|
Part
II. Item 7.
|
5
|
Plan to Pursue Separation of
Non-Utility Nuclear
|
5
|
|
Results of
Operations
|
10
|
|
Liquidity and Capital
Resources
|
20
|
|
Rate, Cost-recovery, and Other
Regulation
|
35
|
|
Market and Credit Risk
Sensitive Instruments
|
44
|
|
Critical Accounting
Estimates
|
47
|
|
New Accounting
Pronouncements
|
54
|
|
Selected Financial Data -
Five-Year Comparison
|
Part
II. Item 6.
|
55
|
Report of Independent
Registered Public Accounting Firm
|
56
|
|
Consolidated Statements of
Income For the Years Ended December 31, 2009,
2008, and 2007
|
Part
II. Item 8.
|
57
|
Consolidated Statements of Cash
Flows For the Years Ended December 31,
2009, 2008, and
2007
|
Part
II. Item 8.
|
58
|
Consolidated Balance Sheets,
December 31, 2009 and 2008
|
Part
II. Item 8.
|
60
|
Consolidated Statements of
Retained Earnings, Comprehensive Income, and
Paid-in Capital for the Years
Ended December 31, 2009, 2008, and 2007
|
Part
II. Item 8.
|
62
|
Notes
to Financial Statements
|
Part
II. Item 8.
|
63
|
Utility
|
Part
I. Item 1.
|
|
Customers
|
194
|
|
Electric Energy
Sales
|
194
|
|
Retail Rate
Regulation
|
196
|
|
Property and Other Generation
Resources
|
200
|
|
Fuel Supply
|
203
|
|
Federal Regulation of the
Utility
|
206
|
|
Service
Companies
|
209
|
|
Jurisdictional Separation of
Entergy Gulf States, Inc. into Entergy Gulf States Louisiana and Entergy
Texas
|
210
|
|
Entergy Louisiana Corporate
Restructuring
|
211
|
|
Earnings Ratios of Registrant
Subsidiaries
|
212
|
|
Non-Utility
Nuclear
|
Part
I. Item 1.
|
212
|
Property
|
212
|
|
Energy and Capacity
Sales
|
214
|
|
Fuel Supply
|
216
|
|
Other Business
Activities
|
216
|
|
Non-Nuclear Wholesale Assets
Business
|
Part
I. Item 1.
|
216
|
Property
|
217
|
|
Entergy-Koch
|
Part
I. Item 1.
|
217
|
Regulation of Entergy's
Business
|
Part
I. Item 1.
|
218
|
Energy Policy Act of
2005
|
218
|
|
Federal Power
Act
|
218
|
|
State
Regulation
|
219
|
|
Regulation of the Nuclear Power
Industry
|
220
|
|
Environmental
Regulation
|
222
|
|
Litigation
|
235
|
|
Employees
|
239
|
|
Risk Factors
|
Part
I. Item 1A.
|
240
|
Unresolved Staff
Comments
|
Part
I. Item 1B.
|
None
|
Entergy
Arkansas, Inc.
|
||
Management's Financial
Discussion and Analysis
|
Part
II. Item 7.
|
258
|
Results of
Operations
|
258
|
|
Liquidity and Capital
Resources
|
261
|
|
State and Local Rate
Regulation
|
266
|
|
Co-Owner-Initiated Proceedings
at the FERC
|
268
|
|
Federal
Regulation
|
269
|
|
Utility
Restructuring
|
269
|
|
Nuclear Matters
|
269
|
|
Environmental
Risks
|
269
|
|
Critical Accounting
Estimates
|
270
|
|
New Accounting
Pronouncements
|
271
|
|
Report of Independent
Registered Public Accounting Firm
|
272
|
|
Income Statements For the Years
Ended December 31, 2009, 2008, and 2007
|
Part
II. Item 8.
|
273
|
Statements of Cash Flows For
the Years Ended December 31, 2009, 2008,
and 2007
|
Part
II. Item 8.
|
275
|
Balance Sheets, December 31,
2009 and 2008
|
Part
II. Item 8.
|
276
|
Statements of Retained Earnings
for the Years Ended December 31, 2009,
2008, and 2007
|
Part
II. Item 8.
|
278
|
Selected Financial Data -
Five-Year Comparison
|
Part
II. Item 6.
|
279
|
Entergy
Gulf States Louisiana, L.L.C.
|
||
Management's Financial
Discussion and Analysis
|
Part
II. Item 7.
|
280
|
Jurisdictional Separation of
Entergy Gulf States, Inc. into Entergy
Gulf States Louisiana and
Entergy Texas
|
280
|
|
Results of
Operations
|
281
|
|
Liquidity and Capital
Resources
|
285
|
|
State and Local Rate
Regulation
|
290
|
|
Federal
Regulation
|
292
|
|
Industrial and Commercial
Customers
|
292
|
|
Nuclear Matters
|
293
|
|
Environmental
Risks
|
293
|
|
Critical Accounting
Estimates
|
293
|
|
New Accounting
Pronouncements
|
294
|
|
Report of Independent
Registered Public Accounting Firm
|
295
|
|
Income Statements For the Years
Ended December 31, 2009, 2008, and 2007
|
Part
II. Item 8.
|
296
|
Statements of Cash Flows For
the Years Ended December 31, 2009, 2008,
and 2007
|
Part
II. Item 8.
|
297
|
Balance Sheets, December 31,
2009 and 2008
|
Part
II. Item 8.
|
298
|
Statements of Members' Equity
and Comprehensive Income for the Years
Ended December 31, 2009, 2008,
and 2007
|
Part
II. Item 8.
|
300
|
Selected Financial Data -
Five-Year Comparison
|
Part
II. Item 6.
|
301
|
Entergy
Louisiana, LLC
|
||
Management's Financial
Discussion and Analysis
|
Part
II. Item 7.
|
302
|
Results of
Operations
|
302
|
|
Liquidity and Capital
Resources
|
305
|
|
State and Local Rate
Regulation
|
312
|
|
Federal
Regulation
|
314
|
|
Industrial and Commercial
Customers
|
314
|
|
Nuclear Matters
|
314
|
|
Environmental
Risks
|
315
|
|
Critical Accounting
Estimates
|
315
|
|
New Accounting
Pronouncements
|
316
|
|
Report of Independent
Registered Public Accounting Firm
|
317
|
|
Income Statements For the
Years Ended December 31, 2009, 2008, and 2007
|
Part
II. Item 8.
|
318
|
Statements of Cash Flows For
the Years Ended December 31, 2009, 2008,
and 2007
|
Part
II. Item 8.
|
319
|
Balance Sheets, December 31,
2009 and 2008
|
Part
II. Item 8.
|
320
|
Statements of Members' Equity
and Comprehensive Income for the Years
Ended December 31, 2009, 2008,
and 2007
|
Part
II. Item 8.
|
322
|
Selected Financial Data -
Five-Year Comparison
|
Part
II. Item 6.
|
323
|
Entergy
Mississippi, Inc.
|
||
Management's Financial
Discussion and Analysis
|
Part
II. Item 7.
|
324
|
Results of
Operations
|
324
|
|
Liquidity and Capital
Resources
|
327
|
|
State and Local Rate
Regulation
|
331
|
|
Federal
Regulation
|
332
|
|
Critical Accounting
Estimates
|
332
|
|
New Accounting
Pronouncements
|
334
|
|
Report of Independent
Registered Public Accounting Firm
|
335
|
|
Income Statements For the Years
Ended December 31, 2009, 2008, and 2007
|
Part
II. Item 8.
|
336
|
Statements of Cash Flows For
the Years Ended December 31, 2009, 2008,
and 2007
|
Part
II. Item 8.
|
337
|
Balance Sheets, December 31,
2009 and 2008
|
Part
II. Item 8.
|
338
|
Statements of Retained Earnings
for the Years Ended December 31, 2009,
2008, and 2007
|
Part
II. Item 8.
|
340
|
Selected Financial Data -
Five-Year Comparison
|
Part
II. Item 6.
|
341
|
Entergy
New Orleans, Inc.
|
||
Management's Financial
Discussion and Analysis
|
Part
II. Item 7.
|
342
|
Results of
Operations
|
342
|
|
Hurricane
Katrina
|
344
|
|
Liquidity and Capital
Resources
|
346
|
|
State and Local Rate
Regulation
|
349
|
|
Federal
Regulation
|
350
|
|
Environmental
Risks
|
351
|
|
Critical Accounting
Estimates
|
351
|
|
New Accounting
Pronouncements
|
352
|
|
Report of Independent
Registered Public Accounting Firm
|
353
|
|
Income Statements For the Years
Ended December 31, 2009, 2008, and
2007
|
Part
II. Item 8.
|
354
|
Statements of Cash Flows For
the Years Ended December 31, 2009, 2008,
and 2007
|
Part
II. Item 8.
|
355
|
Balance Sheets, December 31,
2009 and 2008
|
Part
II. Item 8.
|
356
|
Statements of Retained Earnings
for the Years Ended December 31, 2009,
2008, and 2007
|
Part
II. Item 8.
|
358
|
Selected Financial Data -
Five-Year Comparison
|
Part
II. Item 6.
|
359
|
Entergy
Texas, Inc.
|
||
Management's Financial
Discussion and Analysis
|
Part
II. Item 7.
|
360
|
Jurisdictional Separation of
Entergy Gulf States, Inc. into Entergy
Gulf States Louisiana and
Entergy Texas
|
360
|
|
Results of
Operations
|
361
|
|
Liquidity and Capital
Resources
|
364
|
|
Electric Industry
Restructing
|
369
|
|
State and Local Rate
Regulation
|
370
|
|
Federal
Regulation
|
372
|
|
Industrial and Commercial
Customers
|
372
|
|
Environmental
Risks
|
372
|
|
Critical Accounting
Estimates
|
373
|
|
New Accounting
Pronouncements
|
374
|
|
Report of Independent
Registered Public Accounting Firm
|
375
|
|
Consolidated Income Statements
For the Years Ended December 31, 2009,
2008, and 2007
|
Part
II. Item 8.
|
376
|
Consolidated Statements of Cash
Flows For the Years Ended December 31,
2009, 2008, and
2007
|
Part
II. Item 8.
|
377
|
Consolidated Balance Sheets,
December 31, 2009 and 2008
|
Part
II. Item 8.
|
378
|
Consolidated Statements of
Retained Earnings and
Paid-in Capital for the Years
Ended December 31, 2009, 2008, and 2007
|
Part
II. Item 8.
|
380
|
Selected Financial Data -
Five-Year Comparison
|
Part
II. Item 6.
|
381
|
System
Energy Resources, Inc.
|
||
Management's Financial
Discussion and Analysis
|
Part
II. Item 7.
|
382
|
Results of
Operations
|
382
|
|
Liquidity and Capital
Resources
|
382
|
|
Nuclear Matters
|
385
|
|
Environmental
Risks
|
385
|
|
Critical Accounting
Estimates
|
386
|
|
New Accounting
Pronouncements
|
387
|
|
Report of Independent
Registered Public Accounting Firm
|
388
|
|
Income Statements For the Years
Ended December 31, 2009, 2008, and 2007
|
Part
II. Item 8.
|
389
|
Statements of Cash Flows For
the Years Ended December 31, 2009, 2008,
and 2007
|
Part
II. Item 8.
|
391
|
Balance Sheets, December 31,
2009 and 2008
|
Part
II. Item 8.
|
392
|
Statements of Retained Earnings
for the Years Ended December 31, 2009,
2008, and 2007
|
Part
II. Item 8.
|
394
|
Selected Financial Data -
Five-Year Comparison
|
Part
II. Item 6.
|
395
|
Properties
|
Part
I. Item 2.
|
396
|
Legal
Proceedings
|
Part
I. Item 3.
|
396
|
Submission
of Matters to a Vote of Security Holders
|
Part
I. Item 4.
|
396
|
Executive
Officers of Entergy Corporation
|
Part
I and Part III.
Item
10.
|
396
|
Market
for Registrants' Common Equity and Related Stockholder
Matters
|
Part
II. Item 5.
|
398
|
Selected
Financial Data
|
Part
II. Item 6.
|
399
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
Part
II. Item 7.
|
399
|
Quantitative
and Qualitative Disclosures About Market Risk
|
Part
II. Item 7A.
|
400
|
Financial
Statements and Supplementary Data
|
Part
II. Item 8.
|
400
|
Changes
in and Disagreements with Accountants on Accounting and
Financial
Disclosure
|
Part
II. Item 9.
|
400
|
Controls
and Procedures
|
Part
II. Item 9A.
|
400
|
Attestation
Report of Registered Public Accounting Firm
|
Part
II. Item 9A.
|
402
|
Directors
and Executive Officers of the Registrants
|
Part
III. Item 10.
|
410
|
Executive
Compensation
|
Part
III. Item 11.
|
415
|
Security
Ownership of Certain Beneficial Owners and Management
|
Part
III. Item 12.
|
470
|
Certain
Relationships and Related Transactions and Director
Independence
|
Part
III. Item 13.
|
474
|
Principal
Accountant Fees and Services
|
Part
III. Item 14.
|
475
|
Exhibits
and Financial Statement Schedules
|
Part
IV. Item 15.
|
478
|
Signatures
|
479
|
|
Consents
of Independent Registered Public Accounting Firm
|
487
|
|
Report
of Independent Registered Public Accounting Firm
|
489
|
|
Index
to Financial Statement Schedules
|
S-1
|
|
Exhibit
Index
|
E-1
|
·
|
resolution
of pending and future rate cases and negotiations, including various
performance-based rate discussions and implementation of legislation
ending the Texas transition to competition, and other regulatory
proceedings, including those related to Entergy's System Agreement,
Entergy's utility supply plan, recovery of storm costs, and recovery of
fuel and purchased power costs
|
·
|
changes
in utility regulation, including the beginning or end of retail and
wholesale competition, the ability to recover net utility assets and other
potential stranded costs, the operations of the independent coordinator of
transmission for Entergy's utility service territory, and the application
of more stringent transmission reliability requirements or market power
criteria by the FERC
|
·
|
changes
in regulation of nuclear generating facilities and nuclear materials and
fuel, including possible shutdown of nuclear generating facilities,
particularly those owned or operated by the Non-Utility Nuclear
business
|
·
|
resolution
of pending or future applications for license renewals or modifications of
nuclear generating facilities
|
·
|
the
performance of and deliverability of power from Entergy's generating
plants, including the capacity factors at its nuclear generating
facilities
|
·
|
Entergy's
ability to develop and execute on a point of view regarding future prices
of electricity, natural gas, and other energy-related
commodities
|
·
|
prices
for power generated by Entergy's merchant generating facilities, the
ability to hedge, sell power forward or otherwise reduce the market price
risk associated with those facilities, including the Non-Utility Nuclear
plants, and the prices and availability of fuel and power Entergy must
purchase for its Utility customers, and Entergy's ability to meet credit
support requirements for fuel and power supply
contracts
|
·
|
volatility
and changes in markets for electricity, natural gas, uranium, and other
energy-related commodities
|
·
|
changes
in law resulting from federal or state energy
legislation
|
·
|
changes
in environmental, tax, and other laws, including requirements for reduced
emissions of sulfur, nitrogen, carbon, mercury, and other substances, and
changes in costs of compliance with environmental and other laws and
regulations
|
·
|
uncertainty
regarding the establishment of interim or permanent sites for spent
nuclear fuel and nuclear waste storage and
disposal
|
·
|
variations
in weather and the occurrence of hurricanes and other storms and
disasters, including uncertainties associated with efforts to remediate
the effects of hurricanes and ice storms (including most recently,
Hurricane Gustav and Hurricane Ike and the January 2009 ice storm in
Arkansas) and recovery of costs associated with restoration, including
accessing funded storm reserves, federal and local cost recovery
mechanisms, securitization, and
insurance
|
·
|
effects
of climate change, and environmental and other regulatory obligations
intended to compel reductions in carbon dioxide
emissions
|
·
|
Entergy's
ability to manage its capital projects and operation and maintenance
costs
|
·
|
Entergy's
ability to purchase and sell assets at attractive prices and on other
attractive terms
|
·
|
the
economic climate, and particularly economic conditions in Entergy's
Utility service territory and the Northeast United
States
|
·
|
the
effects of Entergy's strategies to reduce tax
payments
|
·
|
changes
in the financial markets, particularly those affecting the availability of
capital and Entergy's ability to refinance existing debt, execute share
repurchase programs, and fund investments and
acquisitions
|
·
|
actions
of rating agencies, including changes in the ratings of debt and preferred
stock, changes in general corporate ratings, and changes in the rating
agencies' ratings criteria
|
·
|
changes
in inflation and interest rates
|
·
|
the
effect of litigation and government investigations or
proceedings
|
·
|
advances
in technology
|
·
|
the
potential effects of threatened or actual terrorism and
war
|
·
|
Entergy's
ability to attract and retain talented management and
directors
|
·
|
changes
in accounting standards and corporate
governance
|
·
|
declines
in the market prices of marketable securities and resulting funding
requirements for Entergy's defined benefit pension and other
postretirement benefit plans
|
·
|
changes
in decommissioning trust fund earnings or in the timing of or cost to
decommission nuclear plant sites
|
·
|
the
ability to successfully complete merger, acquisition, or divestiture
plans, regulatory or other limitations imposed as a result of merger,
acquisition, or divestiture, and the success of the business following a
merger, acquisition, or divestiture
|
·
|
and
the risks inherent in the contemplated Non-Utility Nuclear spin-off, joint
venture, and related transactions. Entergy Corporation cannot
provide any assurances that the spin-off or any of the proposed
transactions related thereto will be completed, nor can it give assurances
as to the terms on which such transactions will be
consummated. The transaction is subject to certain conditions
precedent, including regulatory approvals and the final approval by the
Board.
|
Abbreviation or Acronym
|
Term
|
AEEC
|
Arkansas
Electric Energy Consumers
|
AFUDC
|
Allowance
for Funds Used During Construction
|
ALJ
|
Administrative
Law Judge
|
ANO
1 and 2
|
Units
1 and 2 of Arkansas Nuclear One Steam Electric Generating Station
(nuclear), owned by Entergy Arkansas
|
APSC
|
Arkansas
Public Service Commission
|
Board
|
Board
of Directors of Entergy Corporation
|
Cajun
|
Cajun
Electric Power Cooperative, Inc.
|
capacity
factor
|
Actual
plant output divided by maximum potential plant output for the
period
|
CDBG
|
Community
Development Block Grant
|
City
Council or Council
|
Council
of the City of New Orleans, Louisiana
|
CPI-U
|
Consumer
Price Index - Urban
|
DOE
|
United
States Department of Energy
|
EITF
|
FASB's
Emerging Issues Task Force
|
Entergy
|
Entergy
Corporation and its direct and indirect subsidiaries
|
Entergy
Corporation
|
Entergy
Corporation, a Delaware corporation
|
Entergy
Gulf States, Inc.
|
Predecessor
company for financial reporting purposes to Entergy Gulf States Louisiana
that included the assets and business operations of both Entergy Gulf
States Louisiana and Entergy Texas
|
Entergy
Gulf States Louisiana
|
Entergy
Gulf States Louisiana, L.L.C., a company formally created as part of the
jurisdictional separation of Entergy Gulf States, Inc. and the successor
company to Entergy Gulf States, Inc. for financial reporting
purposes. The term is also used to refer to the Louisiana
jurisdictional business of Entergy Gulf States, Inc., as the context
requires.
|
Entergy-Koch
|
A
joint venture equally owned by subsidiaries of Entergy and Koch
Industries, Inc. Entergy-Koch's pipeline and trading businesses
were sold in 2004.
|
Entergy
Texas
|
Entergy
Texas, Inc., a company formally created as part of the jurisdictional
separation of Entergy Gulf States, Inc. The term is also used
to refer to the Texas jurisdictional business of Entergy Gulf States,
Inc., as the context requires.
|
EPA
|
United
States Environmental Protection Agency
|
EPDC
|
Entergy
Power Development Corporation, a wholly-owned subsidiary of Entergy
Corporation
|
ERCOT
|
Electric
Reliability Council of Texas
|
FASB
|
Financial
Accounting Standards Board
|
FEMA
|
Federal
Emergency Management Agency
|
FERC
|
Federal
Energy Regulatory Commission
|
firm
LD
|
Transaction
that requires receipt or delivery of energy at a specified delivery point
(usually at a market hub not associated with a specific asset) or settles
financially on notional quantities; if a party fails to deliver or receive
energy, the defaulting party must compensate the other party as specified
in the contract
|
FSP
|
FASB
Staff Position
|
Grand
Gulf
|
Unit
No. 1 of Grand Gulf Steam Electric Generating Station (nuclear), 90% owned
or leased by System Energy
|
GWh
|
Gigawatt-hour(s),
which equals one million kilowatt-hours
|
Independence
|
Independence
Steam Electric Station (coal), owned 16% by Entergy Arkansas, 25% by
Entergy Mississippi, and 7% by Entergy
Power
|
Abbreviation or Acronym | Term |
IRS
|
Internal
Revenue Service
|
ISO
|
Independent
System Operator
|
kV
|
Kilovolt
|
kW
|
Kilowatt
|
kWh
|
Kilowatt-hour(s)
|
LDEQ
|
Louisiana
Department of Environmental Quality
|
LPSC
|
Louisiana
Public Service Commission
|
Mcf
|
1,000
cubic feet of gas
|
MMBtu
|
One
million British Thermal Units
|
MPSC
|
Mississippi
Public Service Commission
|
MW
|
Megawatt(s),
which equals one thousand kilowatt(s)
|
MWh
|
Megawatt-hour(s)
|
Nelson
Unit 6
|
Unit
No. 6 (coal) of the Nelson Steam Electric Generating Station, 70% of which
is co-owned by Entergy Gulf States Louisiana (57.5%) and Entergy Texas
(42.5%)
|
Net
debt ratio
|
Gross
debt less cash and cash equivalents divided by total capitalization less
cash and cash equivalents
|
Net
MW in operation
|
Installed
capacity owned and operated
|
Non-Utility
Nuclear
|
Entergy's
business segment that owns and operates six nuclear power plants and sells
electric power produced by those plants to wholesale
customers
|
NRC
|
Nuclear
Regulatory Commission
|
NYPA
|
New
York Power Authority
|
OASIS
|
Open
Access Same Time Information Systems
|
PPA
|
Purchased
power agreement
|
production
cost
|
Cost
in $/MMBtu associated with delivering gas, excluding the cost of the
gas
|
PRP
|
Potentially
responsible party (a person or entity that may be responsible for
remediation of environmental contamination)
|
PUCT
|
Public
Utility Commission of Texas
|
PUHCA
1935
|
Public
Utility Holding Company Act of 1935, as amended
|
PUHCA
2005
|
Public
Utility Holding Company Act of 2005, which repealed PUHCA 1935, among
other things
|
PURPA
|
Public
Utility Regulatory Policies Act of 1978
|
Registrant
Subsidiaries
|
Entergy
Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C., Entergy Louisiana,
LLC, Entergy Mississippi, Inc., Entergy New Orleans, Inc., Entergy Texas,
Inc., and System Energy Resources, Inc.
|
Ritchie
Unit 2
|
Unit
2 of the R.E. Ritchie Steam Electric Generating Station
(gas/oil)
|
River
Bend
|
River
Bend Steam Electric Generating Station (nuclear), owned by Entergy Gulf
States Louisiana
|
SEC
|
Securities
and Exchange Commission
|
SFAS
|
Statement
of Financial Accounting Standards as promulgated by the
FASB
|
SMEPA
|
South
Mississippi Electric Power Association, which owns a 10% interest in Grand
Gulf
|
spark
spread
|
Dollar
difference between electricity prices per unit and natural gas prices
after assuming a conversion ratio for the number of natural gas units
necessary to generate one unit of electricity
|
System
Agreement
|
Agreement,
effective January 1, 1983, as modified, among the Utility operating
companies relating to the sharing of generating capacity and other power
resources
|
System
Energy
|
System
Energy Resources, Inc.
|
System
Fuels
|
System
Fuels, Inc.
|
Abbreviation or Acronym
|
Term
|
TWh
|
Terawatt-hour(s),
which equals one billion kilowatt-hours
|
unit-contingent
|
Transaction
under which power is supplied from a specific generation asset; if the
asset is not operating, the seller is generally not liable to the buyer
for any damages
|
Unit
Power Sales Agreement
|
Agreement,
dated as of June 10, 1982, as amended and approved by FERC, among Entergy
Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and
System Energy, relating to the sale of capacity and energy from System
Energy's share of Grand Gulf
|
UK
|
The
United Kingdom of Great Britain and Northern Ireland
|
Utility
|
Entergy's
business segment that generates, transmits, distributes, and sells
electric power, with a small amount of natural gas
distribution
|
Utility
operating companies
|
Entergy
Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy
Mississippi, Entergy New Orleans, and Entergy Texas
|
Waterford
3
|
Unit
No. 3 (nuclear) of the Waterford Steam Electric Generating Station, 100%
owned or leased by Entergy Louisiana
|
weather-adjusted
usage
|
Electric
usage excluding the effects of deviations from normal
weather
|
White
Bluff
|
White
Bluff Steam Electric Generating Station, 57% owned by Entergy
Arkansas
|
·
|
Utility generates,
transmits, distributes, and sells electric power in a four-state service
territory that includes portions of Arkansas, Mississippi, Texas, and
Louisiana, including the City of New Orleans; and operates a small natural
gas distribution business.
|
·
|
Non-Utility Nuclear owns
and operates six nuclear power plants located in the northern United
States and sells the electric power produced by those plants primarily to
wholesale customers. This business also provides services to
other nuclear power plant owners. As discussed further in
"Management's Financial
Discussion and Analysis," in November 2007, the Board approved a
plan to pursue a separation of the Non-Utility Nuclear business from
Entergy through a tax-free spin-off of Non-Utility Nuclear to Entergy
shareholders.
|
OPERATING
INFORMATION
|
||||||||||||
For
the Years Ended December 31, 2009, 2008, and 2007
|
||||||||||||
Utility
(a)
|
Non-Utility
Nuclear |
Entergy
Consolidated (a)
|
||||||||||
(In
Thousands)
|
||||||||||||
2009
|
||||||||||||
Operating
revenues
|
$ | 8,055,353 | $ | 2,555,254 | $ | 10,745,650 | ||||||
Operating
expenses
|
$ | 6,731,528 | $ | 1,553,686 | $ | 8,461,124 | ||||||
Other
income
|
$ | 235,968 | $ | 64,603 | $ | 169,708 | ||||||
Interest
and other charges
|
$ | 462,206 | $ | 55,884 | $ | 570,444 | ||||||
Income
taxes
|
$ | 388,682 | $ | 379,266 | $ | 632,740 | ||||||
Net
income
|
$ | 708,905 | $ | 631,020 | $ | 1,251,050 | ||||||
2008
|
||||||||||||
Operating
revenues
|
$ | 10,318,630 | $ | 2,558,378 | $ | 13,093,756 | ||||||
Operating
expenses
|
$ | 9,078,502 | $ | 1,434,425 | $ | 10,810,589 | ||||||
Other
income
|
$ | 161,512 | $ | 46,360 | $ | 169,287 | ||||||
Interest
and other charges
|
$ | 425,216 | $ | 53,926 | $ | 608,921 | ||||||
Income
taxes
|
$ | 371,281 | $ | 319,107 | $ | 602,998 | ||||||
Net
income
|
$ | 605,144 | $ | 797,280 | $ | 1,240,535 | ||||||
2007
|
||||||||||||
Operating
revenues
|
$ | 9,255,075 | $ | 2,029,666 | $ | 11,484,398 | ||||||
Operating
expenses
|
$ | 7,910,659 | $ | 1,312,577 | $ | 9,428,030 | ||||||
Other
income
|
$ | 164,383 | $ | 87,256 | $ | 255,055 | ||||||
Interest
and other charges
|
$ | 422,382 | $ | 34,738 | $ | 637,052 | ||||||
Income
taxes
|
$ | 382,025 | $ | 230,407 | $ | 514,417 | ||||||
Net
income
|
$ | 704,393 | $ | 539,200 | $ | 1,159,954 | ||||||
CASH
FLOW INFORMATION
|
||||||||||||
For
the Years Ended December 31, 2009, 2008, and 2007
|
||||||||||||
Utility
(a)
|
Non-Utility
Nuclear
|
Entergy
Consolidated (a)
|
||||||||||
(In
Thousands)
|
||||||||||||
2009
|
||||||||||||
Net
cash flow provided by operating activities
|
$ | 1,586,020 | $ | 2,434,449 | $ | 2,933,158 | ||||||
Net
cash flow used in investing activities
|
$ | (1,465,824 | ) | $ | (1,978,037 | ) | $ | (2,094,394 | ) | |||
Net
cash flow provided by (used in) financing activities
|
$ | 553,107 | $ | (474,028 | ) | $ | (1,048,388 | ) | ||||
2008
|
||||||||||||
Net
cash flow provided by operating activities
|
$ | 2,379,258 | $ | 1,255,284 | $ | 3,324,328 | ||||||
Net
cash flow used in investing activities
|
$ | (2,845,157 | ) | $ | (471,590 | ) | $ | (2,590,096 | ) | |||
Net
cash flow provided by (used in) financing activities
|
$ | 250,309 | $ | (799,861 | ) | $ | (70,757 | ) | ||||
2007
|
||||||||||||
Net
cash flow provided by operating activities
|
$ | 1,807,769 | $ | 879,940 | $ | 2,559,770 | ||||||
Net
cash flow used in investing activities
|
$ | (1,238,487 | ) | $ | (883,397 | ) | $ | (2,117,731 | ) | |||
Net
cash flow provided by (used in) financing activities
|
$ | (368,909 | ) | $ | 47,705 | $ | (221,586 | ) | ||||
FINANCIAL
POSITION INFORMATION
|
||||||||||||
As
of December 31, 2009 and 2008
|
||||||||||||
Utility
(a)
|
Non-Utility
Nuclear
|
Entergy
Consolidated (a)
|
||||||||||
(In
Thousands)
|
||||||||||||
2009
|
||||||||||||
Current
assets
|
$ | 3,102,516 | $ | 2,625,482 | $ | 4,534,161 | ||||||
Other
property and investments
|
$ | 2,294,191 | $ | 3,229,677 | $ | 3,618,700 | ||||||
Property,
plant and equipment - net
|
$ | 19,253,914 | $ | 3,911,195 | $ | 23,389,402 | ||||||
Deferred
debits and other assets
|
$ | 5,044,111 | $ | 824,455 | $ | 5,822,334 | ||||||
Current
liabilities
|
$ | 2,678,278 | $ | 439,206 | $ | 3,193,997 | ||||||
Non-current
liabilities
|
$ | 19,756,470 | $ | 5,325,411 | $ | 25,245,897 | ||||||
Shareholders'
equity
|
$ | 7,073,474 | $ | 4,826,192 | $ | 8,707,360 | ||||||
2008
|
||||||||||||
Current
assets
|
$ | 3,067,301 | $ | 1,737,474 | $ | 5,160,389 | ||||||
Other
property and investments
|
$ | 2,089,231 | $ | 1,697,893 | $ | 3,237,544 | ||||||
Property,
plant and equipment - net
|
$ | 18,595,892 | $ | 3,592,359 | $ | 22,429,114 | ||||||
Deferred
debits and other assets
|
$ | 5,057,723 | $ | 820,469 | $ | 5,789,771 | ||||||
Current
liabilities
|
$ | 3,635,614 | $ | 318,082 | $ | 3,765,894 | ||||||
Non-current
liabilities
|
$ | 18,217,228 | $ | 3,359,490 | $ | 24,573,303 | ||||||
Shareholders'
equity
|
$ | 6,770,794 | $ | 4,170,623 | $ | 8,060,592 | ||||||
(a)
In addition to the two operating segments presented here, Entergy
Consolidated also includes Entergy Corporation (parent company), other
business activity, and intercompany eliminations, including the
non-nuclear wholesale assets business and earnings on the proceeds of
sales of previously-owned businesses.
|
||||||||||||
Entergy
Corporation
|
||||||||||||||||||||
Utility
|
Non-Utility
Nuclear
|
Other
Businesses
|
||||||||||||||||||
Entergy
Arkansas, Inc.
|
Entergy
Nuclear Operations, Inc.
|
Entergy-Koch,
LP
|
Non-Nuclear
Wholesale Assets
|
|||||||||||||||||
EGS
Holdings, Inc.
|
Entergy
Nuclear Finance, LLC
|
(50%
ownership) (liquidated December 2009)
|
||||||||||||||||||
Entergy
Gulf States Louisiana, L.L.C.
|
Entergy
Nuclear Generation Co. (Pilgrim)
|
|||||||||||||||||||
Entergy
Louisiana Holdings, Inc
|
Entergy
Nuclear FitzPatrick LLC
|
Entergy
Asset Management, Inc.
|
||||||||||||||||||
Entergy
Louisiana, LLC
|
Entergy
Nuclear Indian Point 2, LLC
|
Entergy
Power, Inc.
|
||||||||||||||||||
Entergy
Mississippi, Inc.
|
Entergy
Nuclear Indian Point 3, LLC
|
|||||||||||||||||||
Entergy
New Orleans, Inc.
|
Entergy
Nuclear Palisades, LLC
|
|||||||||||||||||||
Entergy
Texas, Inc.
|
Entergy
Nuclear Vermont Yankee, LLC
|
|||||||||||||||||||
System
Energy Resources, Inc.
|
Entergy
Nuclear, Inc.
|
|||||||||||||||||||
Entergy
Operations, Inc.
|
Entergy
Nuclear Fuels Company
|
|||||||||||||||||||
Entergy
Services, Inc.
|
Entergy
Nuclear Nebraska LLC
|
|||||||||||||||||||
System
Fuels, Inc.
|
Entergy
Nuclear Power Marketing LLC
|
J.
WAYNE LEONARD
Chairman
of the Board and Chief Executive Officer of Entergy
Corporation
|
LEO
P. DENAULT
Executive
Vice President and Chief Financial Officer of Entergy
Corporation
|
HUGH
T. MCDONALD
Chairman
of the Board, President, and Chief Executive Officer of Entergy Arkansas,
Inc.
|
E.
RENAE CONLEY
Chair
of the Board, President, and Chief Executive Officer of Entergy Gulf
States Louisiana, L.L.C. and Entergy Louisiana, LLC
|
HALEY
R. FISACKERLY
Chairman
of the Board, President, and Chief Executive Officer of Entergy
Mississippi, Inc.
|
RODERICK
K. WEST
Chairman,
President, and Chief Executive Officer of Entergy New Orleans,
Inc.
|
JOSEPH
F. DOMINO
Chairman
of the Board, President, and Chief Executive Officer of Entergy Texas,
Inc.
|
JOHN
T. HERRON
Chairman,
President, and Chief Executive Officer of System Energy Resources,
Inc.
|
THEODORE
H. BUNTING, JR.
Senior
Vice President and Chief Accounting Officer (and acting principal
financial officer) of Entergy Arkansas, Inc., Entergy Gulf States
Louisiana, L.L.C., Entergy Louisiana, LLC, Entergy Mississippi, Inc.,
Entergy New Orleans, Inc., and Entergy Texas, Inc.
|
WANDA
C. CURRY
Vice
President and Chief Financial Officer of System Energy Resources,
Inc.
|
·
|
Utility generates,
transmits, distributes, and sells electric power in service territories in
four states that include portions of Arkansas, Mississippi, Texas, and
Louisiana, including the City of New Orleans; and operates a small natural
gas distribution business.
|
·
|
Non-Utility Nuclear owns
and operates six nuclear power plants located in the northern United
States and sells the electric power produced by those plants primarily to
wholesale customers. This business also provides services to
other nuclear power plant owners.
|
%
of Revenue
|
%
of Net Income
|
%
of Total Assets
|
||||||||||||||||
Segment
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
|||||||||
Utility
|
75
|
79
|
80
|
57
|
49
|
61
|
80
|
77
|
78
|
|||||||||
Non-Utility
Nuclear
|
24
|
19
|
18
|
50
|
64
|
46
|
28
|
21
|
21
|
|||||||||
Parent
Company &
Other
Business Segments
|
1
|
2
|
2
|
(7)
|
(13)
|
(7)
|
(8)
|
2
|
1
|
·
|
Enexus
is expected to issue up to $2.0 billion of debt securities in partial
consideration of Entergy's transfer to it of the Non-Utility Nuclear
business.
|
·
|
These
debt securities are expected to be exchanged for up to $2.0 billion of
debt securities that Entergy plans to issue prior to the
spin-off. If the exchange occurs, the holders of the debt
securities that Entergy plans to issue prior to the spin-off would become
holders of up to $2.0 billion of Enexus debt
securities.
|
·
|
Enexus
is expected to issue up to $2.0 billion of debt securities directly to
third party investors.
|
Utility
|
Non-Utility
Nuclear
|
Parent
& Other
|
Entergy
|
|||||
(In
Thousands)
|
||||||||
2008
Consolidated Net Income (Loss)
|
$605,144
|
$797,280
|
($161,889)
|
$1,240,535
|
||||
Net
revenue (operating revenue less fuel expense,
purchased
power, and other regulatory charges/credits)
|
105,167
|
(10,626)
|
2,893
|
97,434
|
||||
Other
operation and maintenance expenses
|
(30,423)
|
76,007
|
(37,536)
|
8,048
|
||||
Taxes
other than income taxes
|
(2,173)
|
8,379
|
701
|
6,907
|
||||
Depreciation
and amortization
|
37,409
|
14,832
|
(326)
|
51,915
|
||||
Other
income
|
74,456
|
18,243
|
(92,278)
|
421
|
||||
Interest
charges
|
36,990
|
1,958
|
(77,425)
|
(38,477)
|
||||
Other
|
16,658
|
12,542
|
5
|
29,205
|
||||
Income
taxes
|
17,401
|
60,159
|
(47,818)
|
29,742
|
||||
2009
Consolidated Net Income (Loss)
|
|
$708,905
|
$631,020
|
($88,875)
|
$1,251,050
|
|
Amount
|
|
|
(In
Millions)
|
|
2008 net
revenue
|
$4,589
|
|
Volume/weather
|
57
|
|
Retail
electric price
|
33
|
|
Fuel
recovery
|
31
|
|
Provision
for regulatory proceedings
|
(26)
|
|
Other
|
10
|
|
2009
net revenue
|
$4,694
|
·
|
rate
increases that were implemented at Entergy Texas in January
2009;
|
·
|
an
increase in the formula rate plan rider at Entergy Gulf States Louisiana
and Entergy Louisiana effective September 2008 and November
2009;
|
·
|
the
recovery of 2008 extraordinary storm costs at Entergy Arkansas as approved
by the APSC, effective January 2009. The recovery of 2008
extraordinary storm costs is discussed in Note 2 to the financial
statements;
|
·
|
an
increase in the capacity acquisition rider related to the Ouachita plant
acquisition at Entergy Arkansas. The net income effect of the
Ouachita plant cost recovery is limited to a portion representing an
allowed return on equity with the remainder offset by Ouachita plant costs
in other operation and maintenance expenses, depreciation expenses and
taxes other than income taxes;
|
·
|
an
increase in the formula rate plan rider at Entergy Mississippi in July
2009;
|
·
|
an
Energy Efficiency rider at Entergy Texas, which was effective December 31,
2008, that is substantially offset in other operation and maintenance
expenses; and
|
·
|
an
increase in the Attala power plant costs recovered through the power
management rider by Entergy Mississippi. The net income effect
of this recovery is limited to a portion representing an allowed return on
equity with the remainder offset by Attala power plant costs in other
operation and maintenance expenses, depreciation expenses, and taxes other
than income taxes.
|
·
|
a
credit passed on to Louisiana retail customers as a result of the Act 55
storm cost financings that began in the third quarter of
2008;
|
·
|
a
formula rate plan refund of $16.6 million to customers in November 2009 in
accordance with a settlement approved by the LPSC. See Note 2
to the financial statements for further discussion of the settlement;
and
|
·
|
a
net decrease in the formula rate plans effective August 2008 at Entergy
Louisiana and Entergy Gulf States Louisiana to remove interim storm cost
recovery upon the Act 55 financing of storm costs as well as the storm
damage accrual. A portion of the decrease is offset in other
operation and maintenance expenses. See Note 2 to the financial
statements for further discussion of the formula rate
plans.
|
|
Amount
|
|
|
(In
Millions)
|
|
2008 net
revenue
|
$2,334
|
|
Volume
variance
|
(53)
|
|
Palisades
purchased power amortization
|
(23)
|
|
Realized
price changes
|
67
|
|
Other
|
(2)
|
|
2009
net revenue
|
$2,323
|
2009
|
2008
|
|||
Net
MW in operation at December 31
|
4,998
|
4,998
|
||
Average
realized price per MWh
|
$61.07
|
$59.51
|
||
GWh
billed
|
40,981
|
41,710
|
||
Capacity
factor
|
93%
|
95%
|
||
Refueling
Outage Days:
|
||||
FitzPatrick
|
-
|
26
|
||
Indian Point 2
|
-
|
26
|
||
Indian Point 3
|
36
|
-
|
||
Palisades
|
41
|
-
|
||
Pilgrim
|
31
|
-
|
||
Vermont Yankee
|
-
|
22
|
·
|
a
decrease due to the write-off in the fourth quarter 2008 of $52 million of
costs previously accumulated in Entergy Arkansas's storm reserve and $16
million of removal costs associated with the termination of a lease, both
in connection with the December 2008 Arkansas Court of Appeals
decision in Entergy Arkansas's base rate case. The base rate case is
discussed in more detail in Note 2 to the financial
statements;
|
·
|
a
decrease due to the capitalization of Ouachita plant service charges of
$12.5 million previously expensed;
|
·
|
a
decrease of $22 million in loss reserves in 2009, including a decrease in
storm damage reserves as a result of the completion of the Act 55 storm
cost financing at Entergy Gulf States Louisiana and Entergy
Louisiana;
|
·
|
a
decrease of $16 million in payroll-related and benefits
costs;
|
·
|
prior
year storm damage charges as a result of several storms hitting Entergy
Arkansas' service territory in 2008, including Hurricane Gustav and
Hurricane Ike in the third quarter 2008. Entergy Arkansas
discontinued regulatory storm reserve accounting beginning July 2007 as a
result of the APSC order issued in Entergy Arkansas' rate
case. As a result, non-capital storm expenses of $41 million
were charged to other operation and maintenance expenses. In
December 2008, $19.4 million of these storm expenses were deferred per an
APSC order and were recovered through revenues in
2009;
|
·
|
an
increase of $35 million in fossil expenses primarily due to higher plant
maintenance costs and plant
outages;
|
·
|
an
increase of $22 million in nuclear expenses primarily due to increased
nuclear labor and contract costs;
|
·
|
an
increase of $14 million due to the reinstatement of storm reserve
accounting at Entergy Arkansas effective January
2009;
|
·
|
an
increase of $14 million due to the Hurricane Ike and Hurricane Gustav
storm cost recovery settlement agreement, as discussed below under "Liquidity
and Capital Resources - Sources of
Capital - Hurricane Gustav and
Hurricane Ike";
|
·
|
an
increase of $8 million in customer service costs primarily as a result of
write-offs of uncollectible customer accounts;
and
|
·
|
a
reimbursement of $7 million of costs in 2008 in connection with a
litigation settlement.
|
·
|
an
increase in distributions of $25 million earned by Entergy Louisiana and
$9 million earned by Entergy Gulf States Louisiana on investments in
preferred membership interests of Entergy Holdings Company. The
distributions on preferred membership interests are eliminated in
consolidation and have no effect on Entergy's net income because the
investment is in another Entergy subsidiary. See Note 2 to the
financial statements for a discussion of these investments in preferred
membership interests;
|
·
|
carrying
charges of $35 million on Hurricane Ike storm restoration costs as
authorized by Texas legislation in the second quarter
2009;
|
·
|
an
increase of $15 million in allowance for equity funds used during
construction due to more construction work in progress primarily as a
result of Hurricane Gustav and Hurricane Ike;
and
|
·
|
a
gain of $16 million recorded on the sale of undeveloped real estate by
Entergy Louisiana Properties, LLC.
|
·
|
an
increase in the elimination for consolidation purposes of interest income
from Entergy subsidiaries; and
|
·
|
increases
in the elimination for consolidation purposes of distributions earned of
$25 million by Entergy Louisiana and $9 million by Entergy Gulf
States Louisiana on investments in preferred membership interests of
Entergy Holdings Company, as discussed
above.
|
·
|
a
tax benefit of approximately $28 million recognized on a capital loss
resulting from the sale of preferred stock of Entergy Asset Management,
Inc., a non-nuclear wholesale subsidiary, to a third
party;
|
·
|
the
recognition of state loss carryovers in the amount of $24.3 million that
had been subject to a valuation
allowance;
|
·
|
the
recognition of a federal capital loss carryover of $16.2 million that had
been subject to a valuation
allowance;
|
·
|
settlements
and agreements with taxing authorities resulting in a release $15.2
million of certain items from the provision for uncertain tax
positions;
|
·
|
an
adjustment to state income taxes of $13.8 million for Non-Utility Nuclear
to reflect the effect of a change in the methodology of computing
Massachusetts state income taxes as required by that state's taxing
authority; and
|
·
|
an
additional deferred tax benefit of approximately $8 million associated
with writedowns on nuclear decommissioning qualified trust
securities.
|
·
|
a
capital loss recognized for income tax purposes on the liquidation of
Entergy Power Generation, LLC in the third quarter 2008, which resulted in
an income tax benefit of approximately $79.5 million. Entergy
Power Generation, LLC was a holding company in Entergy's non-nuclear
wholesale assets business;
|
·
|
recognition
of tax benefits of $44.3 million associated with the loss on sale of stock
of Entergy Asset Management, Inc., a non-nuclear wholesale subsidiary, as
a result of a settlement with the IRS;
and
|
·
|
an
adjustment to state income taxes for Non-Utility Nuclear to reflect the
effect of a change in the methodology of computing Massachusetts state
income taxes resulting from legislation passed in the third quarter 2008,
which resulted in an income tax benefit of approximately $18.8
million.
|
·
|
income
taxes recorded by Entergy Power Generation, LLC, prior to its liquidation,
resulting from the redemption payments it received in connection with its
investment in Entergy Nuclear Power Marketing, LLC during the third
quarter 2008, which resulted in an income tax expense of approximately
$16.1 million; and
|
·
|
book
and tax differences for utility plant items and state income taxes at the
Utility operating companies, including the flow-through treatment of the
Entergy Arkansas write-offs discussed
above.
|
Utility
|
Non-Utility
Nuclear
|
Parent
& Other
|
Entergy
|
|||||
(In
Thousands)
|
||||||||
2007
Consolidated Net Income (Loss)
|
$704,393
|
$539,200
|
($83,639)
|
$1,159,954
|
||||
Net
revenue (operating revenue less fuel expense,
purchased
power, and other regulatory charges/credits)
|
(29,234)
|
495,199
|
(8,717)
|
457,248
|
||||
Other
operation and maintenance expenses
|
10,877
|
13,289
|
68,942
|
93,108
|
||||
Taxes
other than income taxes
|
1,544
|
9,137
|
(2,787)
|
7,894
|
||||
Depreciation
and amortization
|
38,898
|
27,351
|
899
|
67,148
|
||||
Other
income
|
(2,871)
|
(40,896)
|
(42,001)
|
(85,768)
|
||||
Interest
charges
|
2,834
|
19,188
|
(50,153)
|
(28,131)
|
||||
Other
|
23,735
|
38,558
|
6
|
62,299
|
||||
Income
taxes
|
(10,744)
|
88,700
|
10,625
|
88,581
|
||||
2008
Consolidated Net Income (Loss)
|
|
$605,144
|
$797,280
|
($161,889)
|
$1,240,535
|
|
Amount
|
|
|
(In
Millions)
|
|
2007 net
revenue
|
$4,618
|
|
Purchased
power capacity
|
(25)
|
|
Volume/weather
|
(14)
|
|
Retail
electric price
|
9
|
|
Other
|
1
|
|
2008
net revenue
|
$4,589
|
·
|
an
increase in the Attala power plant costs recovered through the power
management rider by Entergy Mississippi. The net income effect
of this recovery is limited to a portion representing an allowed return on
equity with the remainder offset by Attala power plant costs in other
operation and maintenance expenses, depreciation expenses, and taxes other
than income taxes;
|
·
|
a
storm damage rider that became effective in October 2007 at Entergy
Mississippi; and
|
·
|
an
Energy Efficiency rider that became effective in November 2007 at Entergy
Arkansas.
|
·
|
the
absence of interim storm recoveries through the formula rate plans at
Entergy Louisiana and Entergy Gulf States Louisiana which ceased upon the
Act 55 financing of storm costs in the third quarter 2008;
and
|
·
|
a
credit passed on to customers as a result of the Act 55 storm cost
financings.
|
|
Amount
|
|
|
(In
Millions)
|
|
2007 net
revenue
|
$1,839
|
|
Realized
price changes
|
309
|
|
Palisades
acquisition
|
98
|
|
Volume
variance (other than Palisades)
|
73
|
|
Fuel
expenses (other than Palisades)
|
(19)
|
|
Other
|
34
|
|
2008
net revenue
|
$2,334
|
2008
|
2007
|
|||
Net
MW in operation at December 31
|
4,998
|
4,998
|
||
Average
realized price per MWh
|
$59.51
|
$52.69
|
||
GWh
billed
|
41,710
|
37,570
|
||
Capacity
factor
|
95%
|
89%
|
||
Refueling
Outage Days:
|
||||
FitzPatrick
|
26
|
-
|
||
Indian Point 2
|
26
|
-
|
||
Indian Point 3
|
-
|
24
|
||
Palisades
|
-
|
42
|
||
Pilgrim
|
-
|
33
|
||
Vermont Yankee
|
22
|
24
|
·
|
the
write-off in the fourth quarter 2008 of $52 million of costs previously
accumulated in Entergy Arkansas's storm reserve and $16 million of removal
costs associated with the termination of a lease, both in connection with
the December 2008 Arkansas Court of Appeals decision in Entergy
Arkansas's base rate case. The base rate case is discussed in more
detail in Note 2 to the financial
statements;
|
·
|
a
decrease of $39 million in payroll-related and benefits
costs;
|
·
|
a
decrease of $21 million related to expenses recorded in 2007 in connection
with the nuclear operations fleet alignment, as discussed
above;
|
·
|
a
decrease of approximately $23 million as a result of the deferral or
capitalization of storm restoration costs for Hurricane Gustav and
Hurricane Ike, which hit the Utility's service territories in September
2008;
|
·
|
an
increase of $18 million in storm damage charges as a result of several
storms hitting Entergy Arkansas' service territory in 2008, including
Hurricane Gustav and Hurricane Ike in the third quarter
2008. Entergy Arkansas discontinued regulatory storm reserve
accounting beginning July 2007 as a result of the APSC order issued in
Entergy Arkansas' base rate case. As a result, non-capital
storm expenses of $41 million were charged in 2008 to other operation and
maintenance expenses. In December 2008, $19 million of these
storm expenses were deferred per an APSC order and will be recovered
through revenues in 2009. See Note 2 to the financial
statements for discussion of the APSC order;
and
|
·
|
an
increase of $17 million in fossil plant expenses due to the Ouachita plant
acquisition in 2008.
|
·
|
a
revision in the third quarter 2007 related to depreciation on storm
cost-related assets. Recoveries of the costs of those assets
are now through the Act 55 financing of storm costs, as approved by the
LPSC in the third quarter 2007. See "Liquidity and Capital
Resources - Hurricane Katrina and Hurricane Rita" below and Note 2 to the
financial statements for a discussion of the Act 55 storm cost
financing;
|
·
|
a
revision in the fourth quarter 2008 of estimated depreciable lives
involving certain intangible assets in accordance with formula rate plan
treatment; and
|
·
|
an
increase in plant in service.
|
·
|
a
capital loss recognized for income tax purposes on the liquidation of
Entergy Power Generation, LLC in the third quarter 2008, which resulted in
an income tax benefit of approximately $79.5 million. Entergy
Power Generation, LLC was a holding company in Entergy's non-nuclear
wholesale assets business;
|
·
|
recognition
of tax benefits of $44.3 million associated with the loss on sale of stock
of Entergy Asset Management, Inc., a non-nuclear wholesale subsidiary, as
a result of a settlement with the IRS;
and
|
·
|
an
adjustment to state income taxes for Non-Utility Nuclear to reflect the
effect of a change in the methodology of computing Massachusetts state
income taxes resulting from legislation passed in the third quarter 2008,
which resulted in an income tax benefit of approximately $18.8
million.
|
·
|
income
taxes recorded by Entergy Power Generation, LLC, prior to its liquidation,
resulting from the redemption payments it received in connection with its
investment in Entergy Nuclear Power Marketing, LLC during the third
quarter 2008, which resulted in an income tax expense of approximately
$16.1 million; and
|
·
|
book
and tax differences for utility plant items and state income taxes at the
Utility operating companies, including the flow-through treatment of the
Entergy Arkansas write-offs discussed
above.
|
·
|
a
reduction in income tax expense due to a step-up in the tax basis on the
Indian Point 2 non-qualified decommissioning trust fund resulting from
restructuring of the trusts, which reduced deferred taxes on the trust
fund and reduced current tax
expense;
|
·
|
the
resolution of tax audit issues involving the 2002-2003 audit
cycle;
|
·
|
an
adjustment to state income taxes for Non-Utility Nuclear to reflect the
effect of a change in the methodology of computing New York state income
taxes as required by that state's taxing
authority;
|
·
|
book
and tax differences related to the allowance for equity funds used during
construction; and
|
·
|
the
amortization of investment tax
credits.
|
2009
|
2008
|
2007
|
||||
Net
debt to net capital at the end of the year
|
53.5%
|
55.6%
|
54.7%
|
|||
Effect
of subtracting cash from debt
|
3.8%
|
4.1%
|
2.9%
|
|||
Debt
to capital at the end of the year
|
57.3%
|
59.7%
|
57.6%
|
Long-term
debt maturities and estimated interest payments
|
2010
|
2011
|
2012
|
2013-2014
|
after
2014
|
|||||
(In
Millions)
|
||||||||||
Utility
|
$863
|
$796
|
$596
|
$1,590
|
$9,865
|
|||||
Non-Utility
Nuclear
|
36
|
33
|
31
|
41
|
65
|
|||||
Parent
Company and Other
Business
Segments
|
328
|
122
|
2,587
|
-
|
-
|
|||||
Total
|
$1,227
|
$951
|
$3,214
|
$1,631
|
$9,930
|
Capacity
|
Borrowings
|
Letters
of
Credit
|
Capacity
Available
|
|||
(In
Millions)
|
||||||
$3,500
|
$2,566
|
$28
|
$906
|
2010
|
2011
|
2012
|
2013-2014
|
after
2014
|
||||||
(In
Millions)
|
||||||||||
Capital
lease payments, including nuclear fuel leases
|
$212
|
$319
|
$3
|
$4
|
$28
|
Company
|
Expiration
Date
|
Amount
of
Facility
|
Interest
Rate (a)
|
Amount
Drawn as
of
Dec. 31, 2009
|
||||
Entergy
Arkansas
|
April
2010
|
$88
million (b)
|
5.00%
|
-
|
||||
Entergy
Gulf States Louisiana
|
August
2012
|
$100
million (c)
|
0.71%
|
-
|
||||
Entergy
Louisiana
|
August
2012
|
$200
million (d)
|
0.64%
|
-
|
||||
Entergy
Mississippi
|
May
2010
|
$35
million (e)
|
1.98%
|
-
|
||||
Entergy
Mississippi
|
May
2010
|
$25
million (e)
|
1.98%
|
-
|
||||
Entergy
Mississippi
|
May
2010
|
$10
million (e)
|
1.91%
|
-
|
||||
Entergy
Texas
|
August
2012
|
$100
million (f)
|
0.71%
|
-
|
(a)
|
The
interest rate is the weighted average interest rate as of December 31,
2009 applied or that would be applied to the outstanding borrowings under
the facility.
|
(b)
|
The
credit facility requires Entergy Arkansas to maintain a debt ratio of 65%
or less of its total capitalization and contains an interest rate floor of
5%. Borrowings under the Entergy Arkansas credit facility may
be secured by a security interest in its accounts
receivable.
|
(c)
|
The
credit facility allows Entergy Gulf States Louisiana to issue letters of
credit against the borrowing capacity of the facility. As of
December 31, 2009, no letters of credit were outstanding. The
credit facility requires Entergy Gulf States Louisiana to maintain a
consolidated debt ratio of 65% or less of its total
capitalization. Pursuant to the terms of the credit agreement,
the amount of debt assumed by Entergy Texas ($168 million as of December
31, 2009 and $770 million as of December 31, 2008) is excluded from debt
and capitalization in calculating the debt ratio.
|
(d)
|
The
credit facility allows Entergy Louisiana to issue letters of credit
against the borrowing capacity of the facility. As of December
31, 2009, no letters of credit were outstanding. The credit
agreement requires Entergy Louisiana to maintain a consolidated debt ratio
of 65% or less of its total capitalization.
|
(e)
|
Borrowings
under the Entergy Mississippi credit facilities may be secured by a
security interest in its accounts receivable. Entergy
Mississippi is required to maintain a consolidated debt ratio of 65% or
less of its total capitalization.
|
(f)
|
The
credit facility allows Entergy Texas to issue letters of credit against
the borrowing capacity of the facility. As of December 31,
2009, no letters of credit were outstanding. The credit
facility requires Entergy Texas to maintain a consolidated debt ratio of
65% or less of its total capitalization. Pursuant to the terms
of the credit agreement, securitization bonds are excluded from debt and
capitalization in calculating the debt
ratio.
|
2010
|
2011
|
2012
|
2013-2014
|
after
2014
|
||||||
(In
Millions)
|
||||||||||
Operating
lease payments
|
$95
|
$79
|
$66
|
$117
|
$173
|
Contractual
Obligations
|
2010
|
2011-2012
|
2013-2014
|
after
2014
|
Total
|
|||||
(In
Millions)
|
||||||||||
Long-term
debt (1)
|
$1,227
|
$4,165
|
$1,631
|
$9,930
|
$16,953
|
|||||
Capital
lease payments (2)
|
$212
|
$322
|
$4
|
$28
|
$566
|
|||||
Operating
leases (2)
|
$95
|
$145
|
$117
|
$173
|
$530
|
|||||
Purchase
obligations (3)
|
$1,649
|
$2,793
|
$1,689
|
$5,692
|
$11,823
|
(1)
|
Includes
estimated interest payments. Long-term debt is discussed in
Note 5 to the financial statements.
|
(2)
|
Capital
lease payments include nuclear fuel leases. Lease obligations
are discussed in Note 10 to the financial statements.
|
(3)
|
Purchase
obligations represent the minimum purchase obligation or cancellation
charge for contractual obligations to purchase goods or
services. Almost all of the total are fuel and purchased power
obligations.
|
·
|
maintain
System Energy's equity capital at a minimum of 35% of its total
capitalization (excluding short-term
debt);
|
·
|
permit
the continued commercial operation of Grand
Gulf;
|
·
|
pay
in full all System Energy indebtedness for borrowed money when due;
and
|
·
|
enable
System Energy to make payments on specific System Energy debt, under
supplements to the agreement assigning System Energy's rights in the
agreement as security for the specific
debt.
|
Planned
construction and capital investments
|
2010
|
2011
|
2012
|
||||
(In
Millions)
|
|||||||
|
|
|
|||||
Maintenance
Capital:
|
|||||||
Utility
|
$776
|
$783
|
$822
|
||||
Non-Utility
Nuclear
|
92
|
140
|
123
|
||||
Parent
and Other
|
9
|
7
|
8
|
||||
877
|
930
|
953
|
|||||
Capital
Commitments:
|
|||||||
Utility
|
991
|
1,578
|
926
|
||||
Non-Utility
Nuclear
|
349
|
220
|
219
|
||||
1,340
|
1,798
|
1,145
|
|||||
Total
|
$2,217
|
$2,728
|
$2,098
|
·
|
The
currently planned construction or purchase of additional generation supply
sources within the Utility's service territory through the Utility's
portfolio transformation strategy, including Entergy Louisiana's planned
purchase of Acadia Unit 2, which is discussed
below.
|
·
|
Entergy
Louisiana's Waterford 3 steam generators replacement project, which is
discussed below.
|
·
|
System
Energy's planned approximate 178 MW uprate of the Grand Gulf nuclear
plant. The project is currently expected to cost $575 million,
including transmission upgrades. On November 30, 2009, the MPSC
issued a Certificate of Public Convenience and Necessity for
implementation of the uprate.
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Transmission
improvements and upgrades designed to provide greater transmission
flexibility in the Entergy System.
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Initial
development costs for potential new nuclear development at the Grand Gulf
and River Bend sites, including licensing and design
activities. This project is in the early stages, and several
issues remain to be addressed over time before significant additional
capital would be committed to this project. In addition,
Entergy temporarily suspended reviews of the two license applications for
the sites and will explore alternative nuclear technologies for this
project.
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Spending
to comply with current and anticipated North American Electric Reliability
Corporation transmission planning requirements and NRC security
requirements.
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Non-Utility
Nuclear investments including dry cask spent fuel storage, nuclear license
renewal efforts, component replacement across the fleet, NYPA value
sharing, spending in response to the Indian Point Independent Safety
Evaluation and spending to comply with revised NRC security
requirements.
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Environmental
compliance spending, including approximately $420 million for the
2010-2012 period for installation of scrubbers and low NOx burners at
Entergy Arkansas' White Bluff coal plant, which under current
environmental regulations must be operational by September
2013. Entergy Arkansas has requested a variance from that date,
however, because the EPA has recently expressed concerns about Arkansas'
Regional Haze State Implementation Plan and questioned the appropriateness
of issuing an air permit prior to its approval of that
plan. The White Bluff project is currently suspended, but the
latest conceptual cost estimate indicates Entergy Arkansas' share of the
project could cost approximately $465 million. Entergy
continues to review potential environmental spending needs and financing
alternatives for any such spending, and future spending estimates could
change based on the results of this continuing
analysis.
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