Welcome. Leo Denault Chairman and Chief Executive Officer. Analyst Day June 21, 2018

Transcription

1 Welcome Leo Denault Chairman and Chief Executive Officer Analyst Day June 21, 2018

2 Caution regarding forward-looking statements and Regulation G compliance 1 In this presentation, and from time to time, Entergy Corporation makes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Such forward-looking statements include, among other things, Entergy s 2018 earnings guidance, its current financial and operational outlook, and other statements of Entergy s plans, beliefs or expectations included in this presentation. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this presentation and in Entergy s most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy s other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory costs and risks, including any changes resulting from the nuclear crisis in Japan following its catastrophic earthquake and tsunami; (e) changes in decommissioning trust fund values or earnings or in the timing or cost of decommissioning Entergy s nuclear plant sites; (f) legislative and regulatory actions and risks and uncertainties associated with claims or litigation by or against Entergy and its subsidiaries; (g) risks and uncertainties associated with strategic transactions that Entergy or its subsidiaries may undertake, including the risk that any such transaction may not be completed as and when expected and the risk that the anticipated benefits of the transaction may not be realized; (h) effects of changes in federal, state or local laws and regulations and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental or energy policies; and (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions, during the periods covered by the forward-looking statements. This presentation includes the non-gaap financial measures of UP&O adjusted EPS; normalized ROE; parent debt to total debt, excluding securitization debt; and operational FFO to debt, excluding securitization when describing Entergy s results of operations and financial performance. We have prepared reconciliations of these financial measures to the most directly comparable GAAP measure, which can be found in the appendix of this presentation.

3 2 Today s agenda Clear investment plan Successful execution Strong financial growth Clear long-term vision Rod West Paul Hinnenkamp Drew Marsh Leo Denault Break Break Q&A Chris Bakken

4 Clear investment plan Rod West Group President, Utility Operations Analyst Day June 21, 2018

5 1 Discussion outline Clear investment plan Successful execution Strong financial growth Clear long-term vision

6 2 We Power Life Customers Employees Communities Owners Deliver Earn top-quartile Achieve Deliver top-quartile organizational top-decile top-quartile customer health score corporate social returns satisfaction and top-decile responsibility safety performance performance

7 3 Our customer-centric strategy to grow the Utility Investing in a more robust and modernized grid and fleet in response to evolving customer demands with regulatory support and timely cost recovery.

8 4 Strategic execution over the past few years Investing in the Utility $13B capital investment over the last five years Major generation projects approved Transmission expansion Joined MISO in 2014 MTEP 15, 16 and 17 completed AMI under way Constructive regulation Arkansas legislation / E-AR forward test year FRP E-LA FRP improvements E-LA business combination E-MS FRP with forwardlooking features E-TX DCRF and TCRF System Agreement termination

9 5 A clear and robust five-year plan ~85% ready for execution from a regulatory approval standpoint Power generation $4.8B $17.7B Nuclear $2.7B Transmission $3.6B Distribution and utility support $6.6B Note: five-year plan for 2018E 2022E

10 6 Generation capital plan Generation five-year capital plan; cumulative $B E 19E 20E 21E 22E Nuclear Non-nuclear baseline New generation Renewables

11 7 Five major generation projects in process Will provide environmental and economic benefits St. Charles Power Station Lake Charles Power Station Montgomery County Power Station New Orleans Power Station Washington Parish Energy Center ~980 MW CCGT ~994 MW CCGT ~993 MW CCGT ~128 MW RICE ~361 MW CT 2019 in service 2020 in service 2021 in service 2020 in service 2021 in service

12 8 Renewables ~1,000 MW in various stages of development

13 9 Transmission capital plan Transmission five-year capital plan; cumulative $B E 19E 20E 21E 22E Asset management Reliability and growth Economic

14 10 Transmission plan comprised of many projects Projects by size (18E 22E); # Active projects >$20M Illustrative 78 projects >$20M 314 projects <$20M

15 11 Distribution and utility support capital plan Distribution and utility support five-year capital plan; cumulative $B E 19E 20E 21E 22E Distribution baseline Utility support Grid modernization

16 12 Grid modernization $1.3B (18E 22E), primarily AMI Highlights of AMI Latest generation meters One of the fastest networks Enhanced information Tools for tailored customer solutions Improved operational efficiency

17 13 Low customer rates Goal to maintain rate advantage 2017 average retail price by parent company; per kwh ETR 7.58 Source: internal analysis based on EIA-861M data

18 14 Managing customer bills Average monthly residential bill; $ Illustrative Levers to help control bills Nonfuel Fuel <2% CAGR Fuel efficiency Operational savings Energy efficiency Industrial growth Securitizations rolling off 17 18E 19E 20E 21E 22E ETR bill outlook Without return of unprotected excess ADIT New products and services

19 15 Progressive cost recovery mechanisms ~90% of capital plan recovered through timely mechanisms Capital plan recovery by mechanism Illustrative Rate cases Riders Forward-looking FRPs Traditional FRPs Note: chart reflects capital investment, not rate base; capital projects will be reflected in rate base when they are closed to plant; for multi-year projects there will be a timing difference

20 16 Regulatory mechanisms support improved ROEs ROE by operating company, LTM 3/31/18; % E-AR 7.5 Expect to earn close to allowed ROE in 2018 E-LA Updated FRP provides opportunity to earn allowed ROE E-MS 10.4 FRP provides opportunity to earn allowed ROE E-NO 11.1 Plan to file base rate case in 3Q18 E-TX rate case expected to improve earned ROE Book normalized 2 Regulatory allowed 1 For 2017 test year, E-LA will reset to 9.95% ROE; allowed range for 2018 and 2019 test years will be 9.2% 10.4% 2 Normalizes weather and income taxes (see slide 36 in the appendix for Regulation G reconciliation); does not reflect regulatory ROE, which includes other adjustments

21 17 Investment plan benefits our stakeholders Enhanced reliability and resiliency Good-paying jobs Catalyst for our region s economic development Production cost savings Reduced environmental footprint at the Utility Greater customer control and options over energy usage Maintain reasonable rates Enablers of tomorrow s customer solutions

22 18 Clear investment plan $17.7B customer-centric plan Among the lowest rates in the country Constructive regulation

23 Successful execution Paul Hinnenkamp Executive Vice President and Chief Operating Officer Analyst Day June 21, 2018

24 1 Discussion outline Clear investment plan Successful execution Strong financial growth Clear long-term vision

25 2 Strong capital projects management organization Established capital projects management organization with ~25 employees Decision to develop in-house major project management expertise, recognizing significant self-build projects on the horizon >100 employees engaged in project management, project controls, governance and oversight

26 3 Disciplined process to ensure success Stage gate process Deep dive assessments Project execution Schedule, estimates Risk register Risk management Mitigate Avoid Risk Accept Transfer Monthly reporting Ongoing review Safety Sched Cost Risk Entergy s processes and controls are considered top tier. There is a fine line between too much control and not enough control you have struck the right balance. KPMG assessment

27 4 Rigorous project management and oversight Executive oversight EPC partnering program Project management Detailed project reviews Intrusive project management Portfolio controls experts In KPMG s experience, it s very rare for an owner to have this level of project delivery capability. KPMG assessment

28 5 Successful execution since 2014 Placed over $2.5B power generation and transmission investment in service Ninemile 6 Madison-Hinds project ELL acted prudently in its management of the construction of the Ninemile 6 project. Entergy put in place an extensive system for project oversight Key highlights: Ninemile 6 (under budget and two months ahead of schedule) 255 transmission projects to support reliability and growth LPSC Staff testimony, November 2015

29 6 Five major generation projects in process Will provide environmental and economic benefits St. Charles Power Station Lake Charles Power Station Montgomery County Power Station New Orleans Power Station Washington Parish Energy Center All on budget All on schedule

30 7 Three identical CCGT projects in process St. Charles Power Station site rendition

31 8 Long-term planning to meet customer needs Replacing aging generation beyond Utility generation portfolio 1 Investment to support filling the gap Legacy assets (pre-1985) CT/ CCGT/ hydro/ solar New utility-scale generation Renewables and batteries Nuclear Grid infrastructure Local solutions 1 Percent of owned and leased MW capability for Utility generation portfolio as of 12/31/17

32 9 Supporting environmental stewardship Positioned to operate in a carbon-constrained economy One of the cleanest large generating fleets in the U.S. Environment 2020 : Voluntary pledge to reduce CO 2 emissions 20% below year 2000 levels through 2020 ~1,000 MW of renewables in various stages of development Meeting objectives through Portfolio transformation Investment in nuclear fleet New technologies Renewables and distributed energy resources Planning to prepare and publish a two-degree scenario analysis

33 10 Transmission plan comprised of many projects Portfolio of ~400 projects on target Projects by size (18E-22E); # 314 projects <$20M 78 projects >$20M Key performance indicators >$20M Metric projects Cost 100% on budget Schedule 95% on schedule <$20M projects 96% on budget 97% on schedule

34 11 Successful execution Strong track record of execution Major projects on budget and on schedule Organization, processes and oversight for continued success

35 Successful execution Chris Bakken Executive Vice President Nuclear Operations and Chief Nuclear Officer Analyst Day June 21, 2018

36 1 Discussion outline Clear investment plan Successful execution Strong financial growth Clear long-term vision

37 2 Nuclear operations roadmap to excellence Safe, conservative and deliberate operations beyond Building our foundation Changing our behaviors Shared culture and processes Predictable and sustainable performance ANO Column 1 Pilgrim Column 1 (targeted)

38 3 Our operating framework Same framework we laid out in 2016 PEOPLE: Be professional PLANT: Fix the plant PROCESS: Operate as a fleet

39 4 Accomplishments over the last two years ANO to Column 1 Eleven successful refueling outages New leadership with experience from NRC, INPO, U.S. Navy and other nuclear operators Major equipment improvement projects successfully completed Significant employee training Strengthened corporate governance and oversight capabilities

40 5 Updating technology, improving reliability Key projects in five-year plan Replacements Analog systems with digital Nuclear instrumentation Turbine control systems Main condensers Large pumps and motors Transformers Heat exchangers Major piping Main generator stator or rotor rewinds Cooling tower refurbishments

41 6 Successful execution Nuclear operations on track Accomplishments over the last two years in line with expectations Investments in people, plants and processes support operational excellence

42 Strong financial growth Drew Marsh Executive Vice President and Chief Financial Officer Analyst Day June 21, 2018

43 1 Discussion outline Clear investment plan Successful execution Strong financial growth Clear long-term vision

44 2 Our financial objectives Steady, predictable growth at the Utility Earnings growth at our Utility, Parent & Other segment Dividend growth while managing risk Customer-centric capital plan Progressive regulatory constructs Disciplined project management Orderly wind-down of EWC

45 3 Finishing strong at EWC FitzPatrick Vermont Yankee Pilgrim Indian Point Palisades Sold (2017) Shutdown (2014) Agreement to sell (targeted 2018) Planned shutdown (2019) Shutdown less than 12 months away Planned shutdown (2020 / 2021) IP2 in final operating cycle Planned shutdown (2022)

46 4 Progress on Vermont Yankee First-of-a-kind transaction, targeting close by year-end Regulatory approvals VPUC NRC NorthStar technical and financial capability Largest demolition and remediation company in the U.S. 1 Partnerships with leading nuclear industry experts (e.g., Orano, Waste Control Specialists) Financial assurance $60M ~$600M $400M $140M ~$175M Sufficient to decommission under NorthStar plan ~$1.4B NDT + site restoration trust Performance bonds NorthStar guarantee Other financial support Total financial assurance 1 Source: 2016 Engineering New Record rankings

47 5 EWC risk reduction efforts Revenue price risk reduction Operational focus 80% reduction Jan 17 June 18 Employee support Decommissioning Focus on VY as blueprint for other transactions

48 6 EWC wind-down Positive net cash to Parent through 2022 EWC net cash to Parent drivers Capital and non-fuel O&M Fuel Severance and retention Spent fuel Potential NDT contributions Pension contributions Cash taxes Revenues Spent fuel reimbursements Working capital Parent NOLs

49 7 Customer-centric Utility capital plan Utility five-year capital plan; cumulative $B Depreciation expense 18E 19E 20E 21E 22E

50 8 results in steady rate base growth Projected rate base 1 ; $B E 19E 20E 21E 22E 1 Internal estimates based on last-approved rate base adjusted for assumed changes in the major rate base components and includes CWIP; deferred taxes are deducted from rate base for all OpCos, including E-AR

51 9 which drives UP&O earnings growth Targeting 5% 7% long-term growth UP&O adjusted EPS 1 ; $ E guidance As-reported E outlook 20E outlook 21E outlook 22E outlook 1 Excludes special items and normalizes weather and income taxes; see slide 35 in appendix for Regulation G reconciliation : 4.60 Utility + (1.00) Parent & Other; 2015: 6.12 Utility + (1.15) Parent & Other; 2016: 6.34 Utility + (1.24) Parent & Other; 2017: 4.22 Utility + (0.97) Parent & Other

52 10 Credit ratings (outlooks) 1 Improved credit ratings Continuing the momentum S&P Moody s Two years ago BBB Baa3 Today BBB+ (stable) Baa2 (negative) Parent debt to total debt 2 ;% FFO to debt 2 ; % 21.2 Target 25% 15.4 Target 15% 1Q18 18E 22E 1Q18 20E 22E 1 Corporate credit ratings for Entergy 2 Excluding securitization debt; see slides in appendix for Regulation G reconciliation

53 11 Key forecast assumptions Expect Utility book ROEs of ~9.5% Utility, Parent & Other Utility sales growth: total retail ~0.5% 1% CAGR over forecast period Industrial sales growth, partially offset by flat to declining residential sales Utility non-fuel O&M: ~2% 2.5% CAGR over forecast period Utility book equity ratio: ~47% in 2018E, growing to ~49% in 2022E Parent & Other operational loss: ~$(1.50) per year UP&O statutory tax rate: ~25.5% Entergy Consolidated Pension discount rate: 3.78% in 2018, growing to 4.25% for 2019E 2022E Pension contributions: ~$1.1B over 2018E 2022E Equity: no incremental issuance through 2020; assumed 2021 and beyond Share count: ~182M in 2018E, increasing to ~199M in 2020E

54 12 Financing growth 2021E 2022E Sources 1 Illustrative Financing guiding principles Net cash flow from operations Maintain UP&O adjusted EPS growth trajectory Focus on balance sheet strength Maintain parent debt to total debt at or below 25% Maintain FFO to debt at or above 15% by Preliminary and subject to change 2 Current plan assumes new equity of ~5% 10% of 2021E 2022E Utility capital spend

55 13 Dividend growth from UP&O earnings UP&O adjusted EPS 1 ; $ Actual dividend E guidance As-reported E outlook 20E outlook 21E outlook 22E outlook 1 Excludes special items and normalizes weather and income taxes; see slide 35 in appendix for Regulation G reconciliation : 4.60 Utility + (1.00) Parent & Other; 2015: 6.12 Utility + (1.15) Parent & Other; 2016: 6.34 Utility + (1.24) Parent & Other; 2017: 4.22 Utility + (0.97) Parent & Other

56 14 Strong financial growth EWC finishing strong 5% 7% EPS growth at UP&O Focus on balance sheet health

57 Clear long-term vision Leo Denault Chairman and Chief Executive Officer Analyst Day June 21, 2018

58 1 Discussion outline Clear investment plan Successful execution Strong financial growth Clear long-term vision

59 2 Sustainable value for our stakeholders Customers Employees Communities Owners

60 3 Evolving customer expectations No interruptions Save money New technology Green Ease of use

61 4 Shifting from supplier to partner From supplier To partner

62 5 Delivering tailored customer solutions Technology advances make it possible

63 6 Thinking of each customer as a segment of one A different mindset to deliver value Industrial A segment of Commercial ONE Residential

64 7 Strategic investments to further our journey Building an integrated energy network Grid infrastructure replacements / upgrades Enabling technologies Distributed resources Generation Distribution Customer Transmission

65 8 Pipeline of potential investments Enables continued 5% 7% growth beyond 2022 Illustrative Baseline investments Grid infrastructure Enabling technologies Distributed resources ~$20B estimated through 2030 ~$17B potential through 2030 ~$3B potential through 2030 ~$6B potential through 2030

66 9 Adapting our investment strategy IEN is not a one-time investment in Keep lights on with distribution automation Upgrade existing infrastructure Integrate distributed energy resources Deliver information and choice to customers a portfolio of projects. It s a fundamental change to our approach and Fuel tomorrow s technology philosophy on how to invest in our infrastructure. Open gateways to smart appliances

67 10 Doing our part to control customer bills Fuel efficiency Operational savings Technology cost curves Cost management efforts Consumption optimization Industrial growth New products and services Efficient cost recovery

68 11 Uniquely positioned to seize growth opportunities Track record of successful execution Efficient vertical integration Low rates Efficient regulatory frameworks Clean generation Environmental and social responsibility Economic development Prepared for change

69 12 Transforming our organization Organizing for the next wave of capital Organizational changes Innovation and transformation Objectives Develop customer solutions and commercial mindset Organize and evaluate opportunities Distribution operations Identify and execute investments in Grid infrastructure Grid modernization Enabling technologies Distributed resources

70 13 Illustrations of customer solutions Digital navigation solutions Customer-sited generation Customized outage prediction and notification

71 It s the Utility. Reimagined and we re doing it today

72 2018 Analyst Day Appendix and Regulation G reconciliations June 21, 2018

73 2017 electric retail sales 1 ; % Utility overview 1 Governmental E-AR E-LA Industrial 2017 generation portfolio 2 ; % Nuclear 42 Coal Commercial CT/CCGT/ hydro/solar 30 Legacy gas/ oil Residential 1 Percent of 2017 weather-adjusted GWh electric retail sales 2 Percent of owned and leased MW capability for generation portfolio as of 12/31/17 Electric utility 709,000 customers Authorized ROE range: 9.25% 10.25% Forward test year FRP E-MS Electric utility 449,000 customers Authorized ROE range: 9.28% 11.36% FRP with forward-looking features Electric and gas utility Number of customers Electric 1,078,000 Gas 93,000 Authorized ROE ranges: Electric 9.95% (2017 test year); 9.2% 10.4% ( test years) Gas 9.45% 10.45% Electric FRP, gas RSP E-NO Electric and gas utility Number of customers Electric 200,000 Gas 106,000 Authorized ROE ranges: Electric 10.7% 11.5% Gas 10.25% 11.25% Rate case E-TX Electric utility 448,000 customers Authorized ROE: 9.8% Rate case

74 LTM 3/31/18 ROE; % Book Normalized 1 Entergy Arkansas E-AR electric utility Metric Detail Customers 709,000 Authorized ROE 9.25% 10.25% Rate base $7.095B retail rate base (2018 test year) WACC (after-tax) 4.67% Equity ratio 31.69%, including $2.2B of ADIT 2 (45.48% traditional equity ratio) Regulatory construct Forward test year FRP ( annual test years); result outside authorized ROE range resets to midpoint; maximum rate change 4% of filing year total retail revenue; true-up of projection to actuals netted with future projection Last rate change $71M increase effective 1/2/18 Riders MISO, capacity costs, Grand Gulf, tax adjustment, energy efficiency, fuel and purchased power 2 1 Excludes special items and normalizes weather and income taxes; does not reflect regulatory ROE, which includes other adjustments 2 The $2.2B of ADIT reflects the pre-tax reform federal tax rate (35%); will continue to reflect that amount in its cost of capital calculation by including the regulatory liability for the excess ADIT until the value of the excess ADIT has been refunded to customers

75 LTM 3/31/18 ROE; % Book Normalized 2 Entergy Louisiana E-LA electric and gas utility Metric Detail electric 1 Detail gas Customers 1,078,000 93,000 Authorized 9.15% 10.75% 9.45% 10.45% ROE Last filed rate base $8.303B, filed on 5/31/17 (12/31/16 test year) WACC 7.35% 7.54% (after-tax) Equity ratio 49.64% 51.63% Regulatory construct Proposed rate change Riders/specific recovery FRP, test years; 60/40 customer/company sharing outside bandwidth 1 Pending finalization of the 2016 test year filing (docket U-34475) 2 Excludes special items and normalizes weather and income taxes; does not reflect regulatory ROE, which includes other adjustments $0.059B, filed on 1/31/17 (9/30/16 test year) RSP (50 bps dead band, 51 bps 200 bps 50% sharing, >200 bps adjust to 200 bps plus 75 bps sharing) $1.18M RSP increase No FRP change requested Capacity, MISO, fuel Gas infrastructure Table reflects prior FRP framework; on 4/18/18, LPSC approved extension of FRP with certain modifications (see slide 4) 3

76 Entergy Louisiana Additional regulatory highlights 4 Approved FRP (docket U-34631) Highlights Three-year extension ( test years) 9.95% ROE reset for the 2017 test year filing St. Charles Power Station placed in rates at 9.95% when in-service 9.2% 10.4% ROE (9.8% midpoint) for 2018 and 2019 test year filings with 60/40 sharing outside of band New mechanism to recover incremental transmission plant in-service above baseline transmission investment (estimated at $100M annually), using plant inservice through August 31 (eight months beyond test year) Customers to receive benefits of tax reform retroactive to 1/1/18 Cap on revenue increase of $35M for 2018 test year, and $70M for the cumulative 2018 and 2019 test years; cap excludes capacity additions, transmission riders and AMI

77 Entergy Louisiana - Washington Parish Energy Center Regulatory approval process 5 Project overview (docket U-34472) Item Details MW ~361 Estimated total $261M 1 investment Plant type / fuel CT / natural gas Location Bogalusa, LA In-service date 2021 Recovery mechanism Recovery of first year revenue requirement through FRP outside of sharing on dollar-for-dollar basis Status Approved by the LPSC 1 Includes transmission interconnection and other related costs

78 Entergy Mississippi 6 LTM 3/31/18 ROE; % Book Normalized 1 E-MS electric utility Metric Detail Customers 449,000 Authorized ROE Rate base WACC (after-tax) Equity ratio 48.05% Regulatory construct Last rate change Riders 10.32% performance-adjusted midpoint (9.69% % performance factor); 9.28% 11.36% range (annual redetermination based on formula) $2.413B (2018 forward test year) 7.13% FRP with forward-looking features; annual redetermination subject to performance-based bandwidth calculation and subject to annual look-back evaluation; maximum rate increase 4% of test year retail revenue (higher rate increase requires filing of a general rate case) No change requested Power management rider, Grand Gulf, fuel, MISO, unit power cost, storm damage, energy efficiency, ad valorem tax adjustment 1 Excludes special items and normalizes weather and income taxes; does not reflect regulatory ROE, which includes other adjustments

79 Entergy Mississippi Additional regulatory highlights FRP - future test year (docket 2014-UN-132) Highlights Authorized ROE: 10.32% performance adjusted midpoint (9.69% % performance factor); 9.28% 11.36% range (annual redetermination based on formula) Rate base: $2.413B WACC (after tax): 7.13% Equity ratio: 48.05% based on year-end 2017 Earned ROE: 9.96% Rate change requested: None Tax reform implementation incorporated as a known and measurable change Status: approved by MPSC (rates effective first billing cycle June 2018, $25M credit to customers for return of unprotected excess ADIT over three months commencing first billing cycle July 2018)

80 Entergy New Orleans 8 E-NO electric and gas utility Metric Detail electric Detail gas Customers 200, ,000 LTM 3/31/18 ROE; % Authorized ROE 10.7% 11.5% 10.25% 11.25% Rate base (filed on 5/31/12) 1 $0.299B (12/31/11 test year) does not include $0.228B for Union (first year average rate base) WACC (after-tax) 8.58% 8.40% $0.089B (12/31/11 test year) Equity ratio 50.08% 50.08% Regulatory construct Rate case Rate case Riders/specific recovery Fuel, capacity (e.g., Ninemile 6, Union) Purchased gas Book Normalized 2 1 Last filed electric rate base does not include Algiers assets transferred to E-NO from E-LA on 9/1/15; net book value of the assets at the time of the transfer was ~$85M 2 Excludes special items and normalizes weather and income taxes; does not reflect regulatory ROE, which includes other adjustments

81 Entergy Texas 9 LTM 3/31/18 ROE; % Book Normalized 1 E-TX electric utility Metric Detail Customers 448,000 Authorized ROE 9.8% Rate base $1.634B (3/31/13 adjusted test year), filed on 9/25/13 does not include ~$0.331B for rate base being recovered through DCRF and TCRF WACC (aftertax) 8.22% Equity ratio 48.6% Regulatory construct Last rate changes Riders Rate case TCRF increase: ~$19M effective 3/20/17 DCRF increase: ~$9.6M effective 9/1/17 Fuel, capacity, DCRF, TCRF, RPCE payments, rate case expenses, AMI surcharge, among others Table reflects last approved rate case; E-TX filed base rate case on 5/15/18 (see slide 10) 1 Excludes special items and normalizes weather and income taxes; does not reflect regulatory ROE, which includes other adjustments

82 Entergy Texas Additional regulatory highlights 10 Base rate case PUCT docket Highlights Allowed ROE: 10.65% Earned ROE: 6.54% Rate base: $2.572B (based on 12/31/17 test year, known and measurable adjustments and a post-test year adjustment for capital projects closed to plant through 6/30/18) WACC (after-tax): 8.23% Equity ratio: 50.9% 21% federal tax rate incorporated as a known and measurable change Proposed new riders to return $201.7M of unprotected excess ADIT over two years and to recover certain wholesale tariff costs Major drivers of proposed rate change Category $M Rate base differences 77 Depreciation changes 60 Other O&M 56 Income tax expense changes (21.5) Other revenue changes (7.3) Base rate change Roll riders into base rates (48.1) Net rate change Key dates Date Event 8/1/18 Intervenors testimony 8/8/18 Staff testimony 8/16/18 E-TX rebuttal testimony 8/23-31/18 Hearings 10/17/18 Rate effective date 12/21/18 Deadline for final order

83 System Energy Resources, Inc. 11 Grand Gulf Nuclear Station SERI generation company Metric Detail Principal asset An ownership and leasehold interest in Grand Gulf Authorized ROE 10.94% Last calculated rate $1.248B (3/31/18) base WACC (after-tax) 8.81% Equity ratio 65% 1 Regulatory construct Monthly cost of service Energy and capacity allocation 2 ; % E-NO 17 E-AR 36 E-MS E-LA 1 Sale leaseback obligation excluded from capital structure, treated as an operating lease and recovered as an O&M cost 2 Reflects percentages under SERI s Unit Power Sales Agreement

84 System Energy Resources, Inc. Additional Highlights Consolidated proceeding: ROE complaint (FERC docket EL17-41) and depreciation and decommissioning (FERC dockets EL17-93 and ER ) On 1/23/17, the APSC and MPSC filed a complaint alleging that SERI s 10.94% ROE is unjust and unreasonable; the LPSC and CCNO intervened in support of the complaint The MPSC and APSC argue for an ROE range of 8.37% to 8.67% FERC consolidated the complaint with the existing depreciation and decommissioning proceeding FERC set a refund effective date of 1/23/17 On 6/18/18, SERI filed a settlement related to depreciation rates and decommissioning costs SERI also filed a motion to sever / unconsolidate the ROE complaint from the depreciation and decommissioning case Parties were unable to settle the ROE issue, so SERI requested the appointment of a FERC hearing judge LPSC Complaints: ROE (FERC docket EL18-142) and sale leaseback (FERC docket EL18-152) On 4/27/18, the LPSC filed a complaint alleging that SERI s ROE is unjust and unreasonable; the LPSC also requested that for ratemaking purposes, FERC cap SERI s equity component at 49% The LPSC argued for an ROE of 7.08% On 5/31/18, SERI filed a Motion to Dismiss the LPSC ROE Complaint and Answer in opposition to the LPSC s ROE and equity component claims On 5/14/18, the LPSC filed another complaint alleging that SERI was imprudent in entering into the GGNS sale-leaseback renewals and that SERI violated the UPSA formula by including the plant associated with the GGNS sale-leaseback and any associated capital additions in UPSA billings since July 2015 SERI disputes the allegations in the sale-leaseback complaint and plans to file an Answer on 6/28/18 Next steps Date Event 6/28/18 Answer to LPSC sale-leaseback imprudence complaint 12 1 Requested extension until 6/28/18 to file answer to LPSC complaint; waiting for FERC to rule on extension request

85 Key milestones Retail filings on tax reform Retail filings summary OpCo Docket Lower federal tax rate in rates Return of unprotected excess ADIT 1 E-AR FR/ U To be addressed in 2018 FRP filing E-LA U In base rates effective 9/1/18; Reg. liability for Jan Aug 2018 benefit $466M returned to customers ($360M in 2018, remainder in 2019) $212M returned to customers (~half in 2018, remainder ) E-MS 2014-UN-132 Reflected in 2018 FRP $165M ($25M returned to customers in 3Q18, $140M to recover existing rate base items) E-NO Assume base rates effective Aug 2019; Reg. liability for Jan 2018 Aug 2019 benefit ($7M over high-bill months, Energy Smart $8M, grid modernization $1M) $35M ($14M returned to customers, $12M grid modernization funding, $6M Energy Smart, $3M Smart City pilot) E-TX Reflected in recent rate case filing $200M returned to customers over two years Event E-AR ( FR) E-AR ( U) E-LA E-MS E-NO E-TX Initial filing 3Q18 2/27/18 4/12/18 3/15/18 3/26/18 5/15/18 Decision / guidance 4Q18 Approved 3/27/18 Approved 4/18/18 Approved 6/5/18 TBD 3 4Q Represents grossed up amount 2 Council resolution no ; no assigned docket number; Council decision pending 3 Council resolution no ; the Utility, Cable, Telecommunications and Technology Committee approved the agreement-in-principle on 6/14/18; Council decision pending

86 Generation projects 14 Project Location OpCo MW St. Charles Power Station Montz, LA E-LA ~980 CCGT Estimated cost 1 Estimated in service Status $869M 2019 Under construction New Orleans Power Station New Orleans, LA E-NO ~128 RICE $210M 2020 Issued notice to proceed 2 Lake Charles Power Station Westlake, LA E-LA ~994 CCGT $872M 2020 Under construction Montgomery County Power Station Willis, TX E-TX ~993 CCGT $937M 2021 Issued limited notice to proceed Washington Parish Energy Center Bogalusa, LA E-LA ~361 CT $261M 2021 Received regulatory approval 1 Includes transmission interconnection and other related costs 2 Certificate for convenience and necessity on appeal; pending request for rehearing

87 St. Charles Power Station On budget, on schedule 15 Project status Engineering Procurement 98% 94% Construction 54% Site overview March 2018 Project 78% Notice to proceed Foundation work complete Set major equipment First fire Site prep Major equipment deliveries today Backfeed In service 2019

88 Lake Charles Power Station On budget, on schedule 16 Project status Engineering Procurement 49% 59% Construction 9% Site overview June 2018 Project 35% Notice to proceed Foundation work complete Set major equipment First fire Site prep today Major equipment deliveries Backfeed In service 2020

89 Montgomery County Power Station On budget, on schedule 17 Site graphic Existing Lewis Creek plant 2018 major areas of focus Orders for major equipment Gas supply agreement Final air permit Full notice to proceed (3Q) Site mobilization (4Q) Notice to proceed Foundation work complete Set major equipment First fire today Site prep Major equipment deliveries Backfeed In service 2021

90 New Orleans Power Station On budget, on schedule 18 Project status Project rendering Engineering Procurement Construction Project 17% 13% 0% 2% Notice to proceed Foundation work complete Set major equipment First fire today Site prep Major equipment deliveries Backfeed In service 2020

91 Washington Parish Energy Center Acquisition on track major areas of focus Regulatory approval Full notice to proceed (3Q) Demolition of existing structures (4Q) Project rendering Purchase and sale agreement with a subsidiary of Calpine Corporation Acquisition 2021

92 Jurisdictional rate filing guidelines 20 E-AR E-LA E-MS E-NO E-TX SERI Latest filing FRP filed 7/7/17 FRP filed 5/31/17 FRP filed 3/15/18 Next filing date Rate effective date Evaluation period FRP term/ post FRP framework FRP: July 2018 FRP: by 6/30/18 FRP: by 3/15/19 January following filing Forward test year ended 12/31 FRP: 5 years ( test years); option to request FRP extension, file rate case or do nothing September following filing Historical test year ended 12/31 except new generation and transmission closed to plant above baseline through 8/31 of filing year FRP: 3 years ( test years) June following filing Historical test year ended 12/31 plus certain items from forward test year ended 12/31 FRP: no stated term; review scheduled in /31/11 test year FRP (FRP expired) 2018 rate case Monthly cost of service calculation 1 Rate case: 3Q18 n/a n/a 1 year + 35 days after Immediate 15 days after filing 2 filing Historical and forecasted test years ended 12/31 12-month historical test year with available updates Actual current month expense and prior monthend balance sheet n/a n/a Continues until terminated by mutual agreement 1 Not required to be filed per FERC order 2 May be suspended for an additional 150 days

93 E-AR 2018E 2019E 2020E Generation Transmission Distribution Utility support Total Depreciation expense E-LA Generation Transmission Distribution Utility support Total 1,840 1,440 1,130 Depreciation expense E-MS Generation Transmission Distribution Utility support Total Depreciation expense E-NO Generation Transmission Distribution Utility support Total Depreciation expense Utility capital plan; $M E-TX 2018E 2019E 2020E Generation Transmission Distribution Utility support Total Depreciation expense SERI Generation Transmission Distribution Utility support Total Depreciation expense ESI Generation Transmission Distribution Utility support Total Depreciation expense 1 n/a n/a n/a Total Generation 1,605 1,395 1,180 Transmission Distribution 850 1, Utility support Total 3,945 3,765 3,320 Depreciation expense 1,265 1,355 1, Note: Distribution includes capital investment for E-NO s and E-LA s gas distribution business 1 Depreciation for ESI is allocated to each OpCo

94 Region breakdown; % MW as of 12/31/17 MISO NEPOOL Generation portfolio; % MW as of 12/31/17 Gas and oil Nuclear Other 1 Initial expiration dates; Indian Point 2 and 3 are operating under timely renewal doctrine 2 ARO liability balances are based on most recent estimates and are subject to change 3 Includes $39M for Big Rock Point NYISO 52 EWC nuclear plants EWC overview Indian Point 1 Indian Point 2 Indian Point 3 Palisades Pilgrim VY License expiration n/a 9/28/ /12/15 1 3/24/31 6/8/32 n/a Net MW n/a 1,028 1, n/a Energy market (closest hubs) n/a NYISO (Zone G) Net book value of plant and related assets (3/31/18) NYISO (Zone G) MISO (Indiana) NEPOOL (Mass Hub) $124M $155M $55M $51M NDT bal. (3/31/18) $485M $614M $789M $453M $1,048M $591M ARO liability bal. $220M $723M $708M $518M 3 $664M $368M (3/31/18 2 ) Planned closing date Shut down EWC non-nuclear plants n/a 4/30/20 4/30/21 5/31/22 5/31/19 Shut down ISES 2 Nelson 6 RS Cogen COD Fuel / technology Coal Coal CCGT cogen Net MW owned Market MISO MISO MISO 22

95 IPEC license renewal 23 NRC license renewal application (NRC dockets (IP2) and (IP3)) Highlights On 2/8/17, Entergy filed with NRC: Notice of intent to shut down in 2020 / 2021 and Amendment to license application to shorten license life to 2024 / 2025 Next steps Date 4Q18 Event NRC decision expected

96 Vermont Yankee transaction 24 Transaction highlights Item Structure Purchaser Transaction close Conditions to close include Status Next steps Details Equity sale of ENVY NorthStar Decommissioning Holdings, LLC Targeted by year-end VPUC certificate of public good; NRC license transfer application Minimum NDT balance Spent fuel in independent spent fuel storage installation VPUC: On 3/2/18 the Vermont agencies and several parties entered into a memorandum of understanding, which addresses financial assurances and site restoration standards; evidentiary hearing held 5/10 14/18 NRC: Responded to second set of requests for additional information VPUC NRC Docket (ADAMS ML17045A140) Post hearing reply briefs 6/25/18 N/A Decision Targeted 4Q18 Targeted 4Q18 1 Timing of regulatory decisions could impact transaction closing

97 EWC operational adjusted EBITDA outlook Reflects 4/30/18 market prices 25 EWC operational adjusted EBITDA; $M E 19E 20E 21E 22E Net revenue 1,310 1, Non-fuel O&M (730) (660) (500) (340) (130) Other (135) (115) (85) (50) (20) Total /31/

98 Estimated special items 26 Estimated special items; pre-tax $M 18E 19E 20E 21E 22E Asset impairments (capital) (130) (60) (20) (10) - Asset impairments (fuel, refuel / defuel, other) (125) (95) (10) (10) (10) Severance and retention (165) (100) (60) (30) (15) Net gain or loss on sale of assets (165) Total (585) (255) (90) (50) (25) Estimated special items, EPS (2.55) Note: Estimates for expected special items resulting from decisions to close or sell EWC nuclear plants. Other special items may occur during the periods presented, the impact of which cannot reasonably be estimated at this time.

99 EWC capital plan 27 EWC capital plan; $M 18E 19E 20E 21E 22E Pilgrim Indian Point Expected to be impaired as incurred and classified as a special item Palisades / other Total EWC capital Estimated depreciation expense

100 DOE litigation 28 Total awards to date ~$550M Plant Date filed Date resolved Claim ($M) Award ($M) Award as a % of claim Pilgrim round 1 Nov 2003 April % IP1 / IP2 round 1 Nov 2003 June % VY round 1 Nov 2003 March % ANO round 1 Nov 2003 April % GGNS round 1 Nov 2003 April % FitzPatrick / IP3 round 1 Nov 2003 May % ANO round 2 June 2012 June % GGNS round 2 Aug 2011 June % Palisades round 1 Sept 2012 Sept % River Bend round 1 Nov 2003 June % Waterford round 1 Nov 2003 Aug % IP1 / IP2 round 2 Aug 2013 Oct % VY round 2 April 2014 May % Pilgrim round 2 Dec 2014 TBD 65.1 TBD TBD River Bend round 2 Dec 2016 TBD 23.8 TBD TBD ANO round 3 June 2017 TBD 85.9 TBD TBD GGNS round 3 Dec 2017 TBD TBD 1 TBD TBD Waterford round 2 Jan 2018 TBD TBD 1 TBD TBD 1 Damage claim amount not yet filed

101 2018 EPS guidance Affirmed EPS guidance 1 ; $ midpoint midpoint Entergy consolidated operational Utility, Parent & Other adjusted 2 1 The company has not provided a reconciliation of non-gaap guidance to guidance presented on a GAAP basis because it cannot predict and quantify with a reasonable degree of confidence all of the special items that may occur during For those anticipated special items that the company can reasonably estimate at this time, see slide Excludes special items and normalizes weather and income taxes

102 Debt maturity schedule 30 Debt maturity schedule as of March 31, ; $M Company RoY E-AR ,250 E-LA ,334 E-MS ,135 E-NO E-TX SERI Total Utility , ,829 EWC ETR Corp , Total 1, ,025 2,259 10,579 Utility financing activity since March 31, 2018 OpCo Date Amount Coupon Maturity Use of proceeds E-AR 5/8 $250M 4.00% 6/1/28 Redeem ~$31.4M of preferred stock paying dividends at 4.32% 4.72% per year and general corporate purposes 1 Excludes ~$183M long-term DOE obligation, $34M lease obligations for Grand Gulf, $520M of securitization bonds, $13M of OpCo debt related to KIDCO and military bases and $(140M) of unamortized debt expense 2 Revolver draw or commercial paper borrowings as of 3/31/18 3 Includes $100M revolver draw as of 3/31/18 4 Includes $1,125M revolver draw as of 3/31/18

103 2018E 2020E projected financing plan 31 Projected financing plan 1 ; $M 2018E Company YTD 5/31 Rest of year Total 2019E 2020E Long-term debt E-AR E-LA , E-MS E-NO E-TX SERI Total Utility debt 1, ,880 2, ETR Corp Total debt 1, ,880 2,090 1,490 Equity ETR Corp. 1,150 1 Current estimates as of 5/31/18, subject to change; does not include short-term borrowings or potential future economic refinancing activities

104 Agency-published credit metrics 32 Entergy Corp. and Utility operating company credit metrics Moody s (CFO pre-w/c + interest) / interest expense ETR LTM 9/30/17 E-AR LTM 12/31/17 E-LA LTM 9/30/17 E-MS LTM 12/31/17 E-NO LTM 6/30/17 E-TX LTM 6/30/17 4.8x 4.8x 5.6x 5.5x 12.0x 4.5x (CFO pre-w/c) / debt 15.2% 13.8% 19.6% 17.8% 49.6% 20.2% (CFO pre-w/c dividends) / debt 11.9% 13.3% 17.2% 16.0% 42.6% 20.2% Debt / cap 54.2% 54.1% 44.4% 47.1% 40.7% 43.9% S&P (LTM 12/31/17) ETR E-AR E-LA E-MS E-NO E-TX FFO / debt 18.3% 17.8% 23.0% 22.1% 36.4% 11.7% Debt / EBITDA 4.2x 4.3x 4.0x 3.9x 2.9x 5.4x FFO cash interest coverage 6.4x 6.5x 6.8x 7.4x 8.2x 2.7x EBITDA interest coverage 3.4x 3.9x 4.6x 6.2x 5.7x 3.0x OCF / debt 12.1% 15.3% 17.9% 16.0% 31.1% 18.4% Free OCF / debt (8.9)% (10.5)% (8.2)% (12.8)% 2.5% (7.9)% The information on this page has been calculated and published by Moody s or S&P, as indicated, and was not generated by Entergy; such information is being reproduced solely for informational purposes

105 Abbreviations and acronyms 33 Abbreviations and acronyms ADIT Accumulated deferred income taxes AFUDCborrowed Allowance for borrowed funds used funds during construction AFUDC-equity funds Allowance for equity funds used during construction AMI Advanced metering infrastructure ANO Units 1 and 2 of Arkansas Nuclear One owned by E-AR (nuclear) APSC Arkansas Public Service Commission ARO Asset retirement obligation bps Basis points CCGT Combined cycle gas turbine CAGR Compound annual growth rate CCNO Council of the City of New Orleans, Louisiana COD Commercial operation date CWIP Construction work in progress CT Simple cycle combustion turbine DCRF Distribution cost recovery factor E-AR Entergy Arkansas, Inc. E-LA Entergy Louisiana, LLC E-MS E-NO E-TX EBITDA Entergy Mississippi, Inc. Entergy New Orleans, LLC Entergy Texas, Inc. Earnings before interest, income taxes, depreciation and amortization Abbreviations and acronyms EPC ENVY ESI ETR EWC FERC FFO FitzPatrick FRP GAAP Grand Gulf or GGNS Indian Point 1 Indian Point 2 or IP2 Indian Point 3 or IP3 IPEC / Indian Point IEN ISES 2 Engineering, procurement and construction Entergy Nuclear Vermont Yankee, LLC Entergy Services, Inc. Entergy Corporation Entergy Wholesale Commodities Federal Energy Regulatory Commission Funds from operations James A. FitzPatrick Nuclear Power Plant (nuclear, sold March 31, 2017) Formula rate plan U.S. generally accepted accounting principles Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI Unit 1 of Indian Point Energy Center (shut down in 1974) Unit 2 of Indian Point Energy Center (nuclear) Unit 3 of Indian Point Energy Center (nuclear) Indian Point Energy Center (nuclear) Integrated energy network Unit 2 of Independence Steam Electric Station (coal)

106 Abbreviations and acronyms (continued) 34 Abbreviations and acronyms LPSC Louisiana Public Service Commission LTM Last twelve months MISO Midcontinent Independent System Operator, Inc. Moody s Moody s Investors Service MPSC Mississippi Public Service Commission MTEP MISO Transmission Expansion Planning NDT Nuclear decommissioning trust Nelson 6 Unit 6 of Roy S. Nelson plant (coal) NEPOOL New England Power Pool Ninemile 6 Ninemile Point Unit 6 (CCGT) NOL Net operating loss NOPS New Orleans Power Station (reciprocating internal combustion engine/natural gas) NorthStar NorthStar Decommissioning Holdings, LLC NRC Nuclear Regulatory Commission NYISO New York Independent System Operator, Inc. O&M Operation and maintenance expense OCF Net cash flow provided by operating activities OpCo Utility operating company Palisades Palisades Power Plant (nuclear) Pilgrim Pilgrim Nuclear Power Station (nuclear) PUCT Public Utility Commission of Texas Abbreviations and acronyms RICE Reciprocating internal combustion engine ROE Return on equity River Bend River Bend Station (nuclear) RPCE Rough production cost equalization RS Cogen RS Cogen facility (CCGT cogeneration) RSP Rate stabilization plan S&P S&P Global Ratings SERI System Energy Resources, Inc. TCRF Transmission cost recovery factor Union Union Power Station (CCGT) UPSA Unit power sales agreement VPUC Vermont Public Utility Commission VY / Vermont Vermont Yankee Nuclear Power Station Yankee (nuclear) Waterford Waterford Steam Electric Station, Unit No. 3 (nuclear) WACC Weighted-average cost of capital

107 Regulation G reconciliations 35 Table 1: UP&O adjusted EPS Reconciliation of GAAP to Non-GAAP measures 2017, 2016, 2015 and 2014 ($ in millions) Utility earnings (a) , , Parent & Other earnings (loss) (b) (175.5) (222.5) (205.6) (180.8) UP&O earnings (loss) (c) = (a)+(b) Less: Special items (d) (128.5) - - (7.6) Estimated weather (e) (127.8) Tax effect of estimated weather 1 (f) 49.2 (7.0) Estimated weather (after-tax) (g) = (e)-(f) (78.6) Customer sharing (h) - (16.1) (107.0) - Tax effect of customer sharing (i) Other income tax items (j) (31.0) Tax items, net of customer sharing (k) = (h)+(i)+(j) (31.0) UP&O adjusted earnings (l) = (c)-(d)-(g)-(k) (After-tax, per share in $) 2 Utility earnings (m) Parent & Other earnings (loss) (n) (0.97) (1.24) (1.15) (1.00) UP&O earnings (loss) (o) = (m)+(n) Less: Special items (p) (0.71) - - (0.04) Estimated weather (q) (0.44) Other income tax items, net of customer sharing (r) (0.17) UP&O adjusted earnings (s) = (o)-(p)-(q)-(r) Calculations may differ due to rounding 1 Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply to those adjustments 2 Per share amounts are calculated by dividing the corresponding line item in the chart above by the diluted average number of common shares outstanding for the period