Earnings teleconference 2 nd quarter August 1, 2018

Transcription

1 Earnings teleconference 2 nd quarter 208 August, 208

2 Table of contents Section Slides Caution regarding forward-looking statements and Reg. G compliance 2 Strategic execution 3 Quarterly results guidance and longer-term financial outlooks 8 9 Credit profile 0 Appendix and Regulation G reconciliations Utility overview 2 Utility companies regulatory overviews 3 24 Generation projects 25 EWC overview 26 EWC EPS variance details 27 EWC nuclear plant updates EWC hedging and price disclosures 3 33 EWC operational adjusted EBITDA outlook and estimated special items Progress against 208 guidance and sensitivities Second quarter earnings summary 38 Regulation G reconciliations 39 43

3 Caution regarding forward-looking statements and Regulation G compliance 2 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 995. Such forward-looking statements include, among other things, Entergy s 208 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 0-K, any subsequent Quarterly Reports on Form 0-Q and Entergy s other reports and filings made under the Securities Exchange Act of 934; (b) uncertainties associated with () 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 operational EPS; UP&O adjusted EPS; normalized ROE; parent debt to total debt, excluding securitization debt; and operational FFO to debt, excluding securitization debt 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. This presentation should be considered together with the Entergy earnings release to which this teleconference relates, which is posted on the company s website at and which contains further information on non-gaap financial measures.

4 Strategic execution 208 key deliverables Q 2Q 3Q 4Q E-MS annual FRP filing E-NO NOPS decision E-NO AMI decision E-NO renewable RFP selections E-LA renewable RFP selections E-LA FRP extension and modification approval E-LA annual FRP filing E-MS FRP decision E-TX rate case filing Lake Charles transmission project completion (now expected 3Q) ANO Column 4 exit VY certificate of public good decision (VPUC) (now expected 3Q/4Q) Analyst Day (in NYC) E-AR annual FRP filing E-NO rate case filing E-LA annual FRP implementation E-LA WPEC decision E-AR renewable PPA approval (Chicot solar) Southwest Mississippi transmission project completion (now expected 4Q) Agreements to sell Pilgrim and Palisades post shut down (new) VY license transfer application decision (NRC) IPEC license renewal NRC approval (now expected 4Q) Estimated timing as of February 208; regulatory activity or other factors could lead to changes E-AR FRP decision E-TX rate case decision VY sale to NorthStar MTEP 8 approval Annual dividend review 3

5 Second quarter summary 4 EPS summary; $ 2Q8 2Q7 Change ETR Consolidated As-reported (0.93) Operational (.32) Utility, Parent & Other As-reported Operational Adjusted EWC As-reported (0.3).24 (.55) Operational (.94) Key takeaways: Higher retail sales volume, including favorable weather 2Q8 operational results included income tax benefits from settlement of the IRS audit o $0.24 at UP&O o $0.07 at EWC 2Q7 results included a $2.07 income tax item at EWC See slide 38 for a summary of 2Q8 and 2Q7 earnings Excludes special items and normalizes weather and income taxes

6 UP&O second quarter EPS comparison UP&O adjusted earnings; pre-tax $M, except for income taxes (primary drivers noted in italics) (+) Retail volume (incl. unbilled) (+) Retail price (-) Regulatory provisions for lower tax rate (3) (-) Fossil ops. (-) Energy efficiency (-) Storm reserves 50 (+) Lower tax rate (43) (-) Depr n. exp. (-) Interest exp. (-) Other income Q7 Utility net revenue (excl. weather) Utility non-fuel O&M Income taxes Other 2Q8 UP&O adjusted EPS; $ 2Q7 2Q8 Change UP&O as-reported Less: Special items Weather (0.09) Normalize tax UP&O adjusted M and 80.2M average fully diluted shares outstanding for 2Q8 and 2Q7 respectively Excludes $278M of unprotected excess ADIT, which reduced net revenue and income taxes (no earnings impact)

7 EWC second quarter EPS comparison 6 EWC operational earnings; pre-tax $M, except for income taxes (primary drivers noted in italics) (+) Nuclear plant volume (-) Nuclear energy price (365) (-) 2Q7 tax item (7) 25 2Q7 Net revenue Income taxes Other 2Q8 EWC operational EPS; $ 2Q7 2Q8 Change EWC as-reported.24 (0.3) (.55) Less: Special items (0.84) (0.45) 0.39 EWC operational (.94) 83.0M and 80.2M average fully diluted shares outstanding for 2Q8 and 2Q7 respectively

8 Second quarter OCF comparison 7 Consolidated OCF; $M OCF contribution by business; $M Business segment 2Q8 2Q7 Change Utility Parent & Other (58) (5) (7) 290 EWC (45) (228) 83 Total Q8 2Q7 Calculations may differ due to rounding Primary drivers (+) Severance and retention payments at EWC (+) Collections for fuel and purchased power cost recovery (+) Refueling outage costs (EWC and Utility) (-) Return of unprotected excess ADIT to customers

9 208 EPS guidance EPS guidance ; $ (6.55 midpoint) (4.70 midpoint) Entergy consolidated operational Current expectations in the top half of the range Utility, Parent & Other adjusted Current expectations around the midpoint 2 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 208. For those anticipated special items that the company can reasonably estimate at this time, see slide 35 2 Excludes special items and normalizes weather and income taxes

10 Utility, Parent & Other financial outlook 9 UP&O adjusted EPS ; $ E guidance 9E outlook 20E outlook Excludes special items and normalizes weather and income taxes

11 Credit profile 0 Parent debt to total debt ;% FFO to debt ; % 24. Target 25% 5.4 Target 5% 2Q8 8E 22E 2Q8 20E 22E Credit ratings 2 (outlook) S&P Moody s E-AR E-LA E-MS E-NO E-TX SERI ETR A (stable) A2 (stable) A (stable) A2 (stable) A (stable) A2 (stable) A (stable) Baa2 (stable) A (stable) Baa (stable) A (stable) Baa (stable) BBB+ (stable) Baa2 (negative) Excluding securitization debt; see appendix for Regulation G reconciliation 2 Senior secured ratings for the OpCos and SERI; corporate credit rating for Entergy

12 Appendix and Regulation G reconciliations

13 207 electric retail sales ; % Governmental Utility overview E-AR E-LA 2 Industrial 207 generation portfolio 2 ; % Nuclear 42 Coal Commercial CT/CCGT/ hydro/solar Legacy gas/ oil Residential E-MS Electric utility 449,000 customers Electric utility 709,000 customers Authorized ROE range: 9.28%.36% Authorized ROE range: 9.25% 0.25% Forward test year FRP FRP with forward-looking features Electric and gas utility Number of customers Electric 200,000 Gas 06,000 Electric and gas utility Number of customers Electric,078,000 Gas 93,000 Authorized ROE ranges: Electric 9.95% (207 test year); 9.2% 0.4% ( test years) Gas 9.45% 0.45% Electric FRP, gas RSP Authorized ROE ranges: Electric 0.7%.5% Gas 0.25%.25% Rate case E-NO Note: Customer counts at the end of period 2/3/7 Percent of 207 weather-adjusted GWh electric retail sales 2 Percent of owned and leased MW capability for generation portfolio as of 2/3/7 Electric utility 448,000 customers Authorized ROE: 9.8% Rate case E-TX

14 LTM 6/30/8 ROE; % Preliminary subject to change pending 6/30/8 SEC Form 0-Q filing Entergy Arkansas E-AR (currently in rates) Metric Detail Authorized ROE 9.25% 0.25% Rate base $7.095B retail rate base (208 test year) WACC (after-tax) 4.67% Equity ratio 3.69% (45.48% excluding $2.2B of ADIT 2 at 0% cost rate) 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 $7M increase effective /2/ As-reported Normalized Riders MISO, capacity costs, Grand Gulf, tax adjustment, energy efficiency, fuel and purchased power 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

15 Entergy Arkansas Annual FRP filing in process evaluation report docket FR Filing highlights 209 test year 207 test year true-up Earned ROE 7.79% 4.88% Retail rate base (ADIT incl. in WACC, not rate base) $7.547B $6.62B WACC (after-tax) 5.28% 4.64% Equity ratio (traditional equity ratio) 36.85% (46.66% excl. $.7B ADIT at 0% cost rate) 3.6% (43.57% excl. $2.0B ADIT at 0% cost rate) Revenue requirements to midpoint $73.4M $95.6M Rate change requested $65.4M (cap) - Major components of revenue requirement; $M Category 209 TY 207 TY Cost of capital 29 8 Expense items (27) 3 Rate base 50 2 Revenue / sales shortfall 8 74 Other 3 (9) Total Key dates (proposed) Date Event 0/4/8 Staff/intervenor errors and objections 0/9/8 E-AR response to errors and objections 0/3/8 Stipulation or settlement deadline /2/8 Response to settlement /7 8/8 Hearing 2/3/8 Requested decision /2/9 Requested rate adjustment

16 LTM 6/30/8 ROE; % Preliminary subject to change pending 6/30/8 SEC Form 0-Q filing As-reported Normalized 2 Entergy Louisiana E-LA (currently in rates) Metric Detail electric Detail gas Authorized ROE 9.5% 0.75% 9.45% 0.45% Last filed rate base $8.303B, filed on 5/3/7 (2/3/6 test year) $0.0645B, filed on 4/6/8 (9/30/7 test year) WACC 7.35% (after-tax) 7.25% (after-tax) Equity ratio 49.64% 49.53% Regulatory FRP, construct test years; 60/40 customer/ company sharing outside bandwidth Last rate change Riders/specific recovery No base rate change requested in 207 FRP Capacity, MISO, transmission, fuel RSP, 50 bps dead band, 5 bps 200 bps 50% sharing, >200 bps adjust to 200 bps plus 75 bps sharing; for infrastructure costs, 00% sharing above the band $0.85M decrease (largely tax) Gas infrastructure 5 Pending finalization of the 206 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

17 Entergy Louisiana Annual FRP filing in process 6 Annual FRP docket U-3495 Filing highlights ROE: earned 9.88%, allowed 9.95% Rate base: $9.7B (excluding $525M for transmission plant closings through 8/3/8, included in the transmission rider) WACC (after-tax): 7.23% Equity ratio: 49.% Major drivers of proposed rate change, excluding tax reform mechanism Category $M Cost of service 5 Transmission revenue adjustment mechanism 57 Total change from cost of service 62 MISO, capacity and other 4 Total, excluding tax reform mechanism 03 Annualized tax reform mechanism (5) Total (2) Key dates Date Event 9//8 Rate effective date 9/20/8 Deadline for Staff and parties to identify issues with the filing Summary of tax reform mechanism Item $M Timeframe Refund Jan Aug 208 (75) Sept 208 Aug 209 income tax rate difference Refund SERI ADIT (9) Sept 208 Aug 209 Return of unprotected excess ADIT (2) /2 from May Dec 208, remainder over Return of protected (28) Sept 208 Aug 209 excess ADIT 2 Rate base offset 3 9 Sept 208 Aug 209 Refund began in May Total protected excess ADIT to be refunded over ~30 years is $692M; amount will vary by year 3 Annual rate base offset will increase as the regulatory liability for excess ADIT is returned to customers

18 Entergy Mississippi 7 LTM 6/30/8 ROE; % Preliminary subject to change pending 6/30/8 SEC Form 0-Q filing As-reported Normalized E-MS (currently in rates) Metric Detail Authorized 0.32% performance-adjusted midpoint (9.69% ROE % performance factor); 9.28%.36% range (annual redetermination based on formula) Rate base $2.43B (208 forward test year) WACC 7.3% (after-tax) Equity ratio 48.05% Regulatory FRP with forward-looking features; annual construct 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) Rate change None requested in 208 FRP filing Riders Power management rider, Grand Gulf, fuel, MISO, unit power cost, storm damage, energy efficiency, ad valorem tax adjustment Excludes special items and normalizes weather and income taxes; does not reflect regulatory ROE, which includes other adjustments

19 Entergy New Orleans 8 E-NO (currently in rates) Metric Detail electric Detail gas Authorized ROE 0.7%.5% 0.25%.25% Rate base (filed on 5/3/2) $0.299B (2/3/ test year) does not include $0.228B for Union (first year average rate base) WACC (after-tax) 8.58% 8.40% $0.089B (2/3/ test year) LTM 6/30/8 ROE; % Preliminary subject to change pending 6/30/8 SEC Form 0-Q filing Equity ratio 50.08% 50.08% Regulatory construct Rate case Rate case Riders/specific recovery Fuel, capacity (e.g., Ninemile 6, Union) Purchased gas..2 As-reported Normalized 2 Last filed electric rate base does not include Algiers assets transferred to E-NO from E-LA on 9//5; 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

20 Entergy New Orleans Base rate case filing Base rate case CCNO docket TBD Highlights ROE: earned 8.89%, allowed 0.75% Rate base: $0.9B (based on 2/3/8 test year with known and measurable plant closings through 2/3/9) WACC (after-tax): 7.92% Equity ratio: 52.2% 2% federal tax rate incorporated as a known and measurable change Requested mechanisms: o FRP for test years o Riders for gas infrastructure, grid modernization, capacity and long-term service agreements Also includes community solar, green pricing options and new customer offerings Major drivers of proposed rate change (3) Category $M AMI 8 Rate base 9 Depreciation expense 7 Other O&M (4) Income tax expense (4) Other revenue changes (5) Base rate change 209 projected fuel savings and energy efficiency Net rate change (20) Procedural schedule to be determined 9

21 Entergy Texas 20 LTM 6/30/8 ROE; % Preliminary subject to change pending 6/30/8 SEC Form 0-Q filing E-TX (currently in rates) Metric Detail Authorized ROE 9.8% Rate base $.634B (3/3/3 adjusted test year), filed on 9/25/3 does not include ~$0.33B for rate base being recovered through DCRF and TCRF WACC (after-tax) 8.22% Equity ratio 48.6% Regulatory Rate case construct Last rate changes DCRF increase: ~$9.6M effective 9//7 Riders Fuel, capacity, DCRF, TCRF, RPCE payments, rate case expenses, AMI surcharge, among others As-reported Normalized Excludes special items and normalizes weather and income taxes; does not reflect regulatory ROE, which includes other adjustments

22 Base rate case PUCT docket 4837 Highlights ROE: earned 6.54%, allowed 0.65% Rate base: $2.572B (based on 2/3/7 test year, known and measurable adjustments and a post test year adjustment for capital projects closed to plant through 6/30/8) WACC (after-tax): 8.23% Equity ratio: 50.9% 2% federal tax rate incorporated as a known and measurable change Proposed new riders to return $20.7M of unprotected excess ADIT over two years and to recover certain wholesale tariff costs Entergy Texas Base rate case filing Major drivers of proposed rate change Annual Category $M Rate base differences 77 Depreciation changes 60 Other O&M 56 Income tax expense changes (22) Other revenue changes (5) Base rate change 66 Roll riders into base rates (48) Net base rate change 8 Limited-term Tax Cuts and Jobs Act rider ~(0) Net rate change 7 Key dates Date Event 8//8 Intervenors testimony 8/8/8 Staff testimony 8/6/8 E-TX rebuttal testimony 8/23-3/8 Hearings 0/7/8 Rate effective date 2/2/8 Deadline for final order Limited-term Tax Cuts and Jobs Act of 207 rider that is designed to return ~$20.7M of unprotected excess ADIT over a period of two years 2

23 System Energy Resources, Inc. 22 Grand Gulf Nuclear Station SERI generation company Metric Detail Principal asset An ownership and leasehold interest in Grand Gulf Authorized ROE 0.94% Last calculated rate $.373B (6/30/8) base WACC (after-tax) 8.85% Equity ratio 65% Regulatory construct Monthly cost of service Energy and capacity allocation 2 ; % E-NO 7 E-AR 36 E-MS 33 4 E-LA 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

24 System Energy Resources, Inc. 23 FERC proceedings APSC / MPSC ROE complaint (docket EL7-4) /23/7 complaint alleged that SERI s ROE is unjust and unreasonable; APSC / MPSC argue for an ROE range of 8.37% to 8.67% 9/29/7 FERC set the matter for hearing and settlement; refund effective date /23/7 6/8/8 SERI filing indicated that parties were unable to settle ROE issue, so SERI requested the appointment of a FERC hearing judge for that proceeding 7/26/8 Hearing judge appointed Next steps Development of procedural schedule; hearing likely to occur in April 209 LPSC ROE complaint (docket EL8-42) 4/27/8 complaint alleged that SERI s ROE is unjust and unreasonable; LPSC argues for 7.08% ROE; LPSC also requests that SERI s equity component be capped at 49% for ratemaking 5/3/8 SERI filed a motion to dismiss and answer in opposition to the LPSC s claims 5/3/8 CCNO / MPSC / APSC filed a motion to consolidate the LPSC ROE complaint with the APSC / MPSC ROE complaint Next steps FERC order addressing complaint, motion to dismiss and requests to consolidate LPSC complaint re. GGNS sale-leaseback renewal (docket EL8-52) 5/4/8 complaint alleged that () SERI was imprudent in renewing the sale-leaseback, (2) SERI violated the filed rate when it included the cost of capital additions associated with the sale-leaseback interest in UPSA billings and (3) SERI is double-recovering costs by including both the lease payments and the capital additions in UPSA billings 6/28/8 SERI filed a motion to dismiss and answer in opposition to the LPSC s claims Next steps FERC order addressing complaint and motion to dismiss FERC consolidated the ROE complaint with SERI s depreciation and decommissioning filing (docket ER7-229); parties subsequently reached a settlement on the depreciation and decommissioning issues

25 Key milestones Retail filings on tax reform Retail filings summary OpCo Docket Lower federal tax rate in rates Return of unprotected excess ADIT Tax rate change as part of the 208 E-AR FR/ 8-04-TF test year true-up 2 E-LA U-3436 In base rates effective 9//8; reg. liability for Jan Aug 208 benefit $466M returned to customers ($360M in 208, remainder in 209) $22M returned to customers (~half in 208, remainder ) E-MS 204-UN-32 Reflected in 208 FRP $65M ($25M returned to customers in 3Q8, $40M to recover existing rate base items) E-NO 8-38 Assume base rates effective Aug 209; reg. liability for Jan 208 Aug 209 benefit ($7M over high-bill months, $7M Energy Smart, $M grid modernization) $35M ($4M returned to customers, $2M grid modernization funding, $6M Energy Smart, $3M Smart City pilot) E-TX 4837 Reflected in recent rate case filing $200M returned to customers over two years E-AR E-AR Event (6-036-FR) (8-04-TF) E-LA E-MS E-NO E-TX Initial filing 3Q8 2/27/8 4/2/8 3/5/8 3/26/8 5/5/8 Decision/guidance 4Q8 Approved 3/27/8 Approved 4/8/8 Approved 6/5/8 6/2/8 4Q8 24 Represents grossed up amounts 2 See also APSC docket U, the generic investigation docket for tax reform issues

26 Generation projects 25 Project Location OpCo MW St. Charles Power Station Montz, LA E-LA ~980 CCGT Estimated cost Estimated in service Status $869M 209 Under construction New Orleans Power Station New Orleans, LA E-NO ~28 RICE $20M 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 202 Issued full notice to proceed Washington Parish Energy Center Bogalusa, LA E-LA ~36 CT $26M 202 Received regulatory approval Includes transmission interconnection and other related costs 2 Council approval is on appeal and is being challenged in a lawsuit alleging violations of the Open Meetings Law

27 EWC overview 26 Region breakdown; % MW as of 2/3/7 MISO 30 8 NEPOOL Generation portfolio; % MW as of 2/3/7 Gas and oil Nuclear NYISO 52 Other EWC nuclear plants Indian Point Indian Point 2 Indian Point 3 Palisades Pilgrim VY License expiration n/a 9/28/3 2/2/5 3/24/3 6/8/32 n/a Net MW n/a,028, n/a Energy market (closest hubs) n/a NYISO (Zone G) Net book value of plant and related assets (6/30/8) NYISO (Zone G) MISO (Indiana) NEPOOL (Mass Hub) $3M $44M $7M $48M NDT bal. (6/30/8) $49M $62M $80M $460M $,055M $585M ARO liability bal. $223M $738M $723M $528M 3 $676M $344M (6/30/8) 2 Planned closing date Shut down EWC non-nuclear plants n/a 4/30/20 4/30/2 5/3/22 5/3/9 Shut down ISES 2 Nelson 6 RS Cogen COD Fuel / technology Coal Coal CCGT cogen Net MW owned Market MISO MISO MISO 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

28 EWC year-to-date variance details 27 EWC 2Q8 YTD EPS variance details; pre-tax $M Period-over-period variances EWC excl. Line item EWC FitzPatrick FitzPatrick Net revenue (4) 5 Non-fuel O&M (8) 3 (2) Decommissioning expense Taxes other than income taxes () 2 (3) Depreciation/amortization expense Other income (deductions) other (46) (4) (42) Interest expense and other charges (4) - (4) Income taxes (344) (4) (340) Operational variance (358) 7 (365) Add back special items 87 (48) 35 As-reported variance (27) (4) (230) Calculations may differ due to rounding

29 IPEC license renewal 28 NRC license renewal application (NRC dockets (IP2) and (IP3)) Highlights On 2/8/7, Entergy filed with NRC: Notice of intent to shut down in 2020 / 202 and Amendment to license application to shorten license life to 2024 / 2025 Next steps Date 4Q8 Event NRC decision expected

30 Vermont Yankee transaction 29 Transaction highlights Item Details Structure Equity sale of ENVY Purchaser NorthStar Decommissioning Holdings, LLC Transaction close Conditions to close include Status Next steps Targeted by year-end 208 Regulatory approvals: VPUC certificate of public good; NRC license transfer approval Minimum NDT balance Spent fuel in independent spent fuel storage installation VPUC fully briefed, including settlement agreement addressing financial assurances and site restoration standards; certificate of public good decision pending and follows NRC license transfer approval decision Responses to all NRC staff requests for additional information and NorthStar commingled fund exemption submitted; pending decision on license transfer approval and commingled fund exemption VPUC NRC Docket (ADAMS ML7045A40) Decision Targeted 3Q/4Q8 Targeted 3Q8 Timing of regulatory decisions could impact transaction closing

31 Pilgrim and Palisades transactions 30 Transaction highlights Item Pilgrim Palisades Structure Equity sale of ENGC Equity sale of ENP Purchaser Nuclear Asset Management Co., LLC (Holtec International subsidiary) Nuclear Asset Management Co., LLC (Holtec International subsidiary) Conditions to close include Permanent shutdown and reactor defuel NRC approval FERC approval (switchyard change of control) Minimum NDT balance Palisades agreement has not been terminated due to breach by purchaser Permanent shutdown and reactor defuel NRC approval Minimum NDT balance Pilgrim transaction close Status Executed purchase and sale agreement Executed purchase and sale agreement Targeted timeline Pilgrim Palisades NRC filing 4Q8 TBD FERC filing TBD n/a Targeted close By the end of 209 By the end of 2022

32 EWC nuclear capacity and generation table ( of 2) 3 EWC nuclear portfolio (based on market prices as of June 30, 208) Balance of 8E 9E 20E 2E 22E Energy Planned TWh of generation Percent of planned generation under contract Unit-contingent 98% 94% 8% 84% 67% Firm LD 9% Offsetting positions (9)% Total 98% 94% 8% 84% 67% Average revenue per MWh on contracted volumes (in $) Expected based on current market prices See Appendix F in the earnings press release for definitions Reflects shutdown of Pilgrim (5/3/9), IP2 (4/30/20), IP3 (4/30/2) and Palisades (5/3/22)

33 EWC nuclear capacity and generation table (2 of 2) 32 EWC nuclear portfolio (based on market prices as of June 30, 208) Balance of 8E 9E 20E 2E 22E Capacity Planned net MW in operation (average) 3,568 3,67 2,95, Percent of capacity sold forward Bundled capacity and energy contracts 22% 25% 37% 68% 97% Capacity contracts 45% 6% Total 67% 4% 37% 68% 97% Average revenue under contract (applies to capacity contracts only) (in $/kw-month) Total energy and capacity revenues 2 (in $) Expected sold and market total revenue per MWh Sensitivity: -/+ $0 per MWh market price change See Appendix F in the earnings press release for definitions Reflects shutdown of Pilgrim (5/3/9), IP2 (4/30/20), IP3 (4/30/2) and Palisades (5/3/22) 2 Includes assumptions on converting a portion of the portfolio to contracted with fixed price cost or discount and excludes non-cash revenue from the amortization of the Palisades below-market PPA, mark-to-market activity and service revenues

34 Energy prices 33 EWC northeast nuclear energy prices ; $/MWh (weighted by open position) /3/ Bal 8E 9E 20E 2E Excludes Palisades, which is 99% hedged, and reflects shutdown of Pilgrim (5/3/9), IP2 (4/30/20) and IP3 (4/30/2)

35 EWC operational adjusted EBITDA outlook Reflects 6/30/8 market prices 34 EWC operational adjusted EBITDA; $M E 9E 20E 2E 22E Net revenue,35, Non-fuel O&M (735) (660) (505) (340) (30) Other (35) (0) (80) (50) (25) Total /30/

36 Estimated special items 35 Estimated special items; pre-tax $M 8E 9E 20E 2E 22E Asset impairments (capital) (25) (60) (20) (0) - Asset impairments (fuel, refuel / defuel, other) (85) (35) (5) (0) (0) Severance and retention (55) (0) (60) (30) (5) Net loss on sale of assets (65) (500) - - (60) Total (630) (705) (95) (50) (85) Estimated special items, EPS (2.75) Note: The table above reflects 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. Net loss on sale of assets represents our current estimates, which are subject to change. The primary variables in the ultimate loss are the values of the NDTs and the asset retirement obligations, financial results from plant operations and the level of any deferred tax balances prior to the closing of the sale.

37 Progress against guidance Measure 208 guidance YTD result Comments ETR operational EPS $6.25 $6.85 $2.96 Affirmed, current expectation in top half of range UP&O adjusted EPS $4.50 $4.90 $.94 Affirmed, current expectation around midpoint Full year considerations Driver Comments Utility Weather $0.20 YTD; assume normal weather in forecast periods Weather-adj. retail 0.8% YTD; expect quarterly timing variances sales growth Full year expectation generally consistent with guidance of (0.7%) Rate actions/ Incl. rate base actions and rate changes and/or reg. provisions related to tax reform regulatory provisions E-AR FRP increase $7M effective Jan. 208 Base rate filings with rate effective dates in 208 that are pending: E-LA FRP; E-TX rate case Operating expenses Includes non-fuel O&M, depreciation and taxes other than income taxes; expect Income tax EWC Net revenue Other income Income tax item quarterly timing differences Will include lower federal tax rate and amortization of unprotected portion of excess ADIT (offset in net revenue) YTD volume lower-than-planned See Generation and Capacity table on slides 3 32 for balance of year expectation YTD trust performance below guidance assumption (~$0.7 versus planning assumption of approximately $0.50 for YTD) Outlook assumes historical annualized return of ~6.25% for the balance of the year $00M benefit included in guidance currently expected in 3Q 36

38 Variable Utility Retail sales growth for existing customers 208 guidance sensitivities Prepared February 208 Description of sensitivity % change in Residential MWh sold % change in Commercial / Governmental MWh sold % change in Industrial MWh sold Estimated annual EPS impact +/ / / Non-fuel O&M expense % change in expense -/+ 0. Rate base $00M change in rate base +/ ROE 00 bps change in allowed ROE +/ EWC Nuclear capacity factor % change in capacity factor +/ EWC revenue (energy) $0/MWh market price change +/- 0.0 EWC revenue (capacity) $0.50/kW-month change in capacity price on nuclear capacity +/ Non-fuel O&M expense % change in expense -/ Nuclear outage,000 MW plant for 0 days at average portfolio energy price in (0.04) (lost revenue only) 208 (assuming no resupply option exercise) NDT earnings 00 bps change in equity return +/ Consolidated Interest expense % change in interest rate on $B debt -/ Pension and OPEB 25 bps change in discount rate +/

39 Second quarter earnings summary 38 Second quarter earnings summary $ in millions Per share in $ As-reported Utility Parent & Other (73) (57) (0.40) (0.32) EWC (57) 223 (0.3).24 Total Less special items Utility Parent & Other EWC (82) (5) (0.45) (0.84) Total (82) (5) (0.45) (0.84) Operational Utility Parent & Other (73) (57) (0.40) (0.32) EWC Total

40 Regulation G reconciliations 39 Table : Consolidated and EWC EPS Reconciliation of GAAP to Non-GAAP Measures 2Q8 and 2Q7 (Per share in $) Consolidated EWC 2Q8 2Q7 2Q8 2Q7 As-Reported (a) (0.3).24 Less Special Items EWC Items associated with decisions to close or sell EWC Nuclear plants (0.45) (0.84) (0.45) (0.84) Total Special Items (b) (0.45) (0.84) (0.45) (0.84) Operational (a)-(b) Calculations may differ due to rounding 83.0M and 80.2M average fully diluted shares outstanding for 2Q8 and 2Q7 respectively

41 Regulation G reconciliations 40 Table 2: UP&O adjusted earnings and EPS Reconciliation of GAAP to Non-GAAP measures 2Q8 and 2Q7 ($ in millions) 2Q8 2Q7 Utility as-reported earnings (a) Parent & Other as-reported (loss) (b) (73) (57) UP&O as-reported earnings (loss) (c) = (a)+(b) Less: Special items (d) - - Estimated weather (e) 28 (26) Tax effect of estimated weather (f) (7) 0 Estimated weather impact (after-tax) (g) = (e)-(f) 2 (6) Other income tax items (h) 57 - UP&O adjusted earnings (i) = (c)-(d)-(g)-(h) (After-tax, per share in $) Utility as-reported earnings (j) Parent & Other as-reported (loss) (k) (0.40) (0.32) UP&O as-reported earnings (loss) (l) = (j)+(k) Less: Special items (m) - - Estimated weather (n) 0. (0.09) Other income tax items (o) UP&O adjusted earnings (p) = (l)-(m)-(n)-(o).23.2 Calculations may differ due to rounding 83.0M and 80.2M average fully diluted shares outstanding for 2Q8 and 2Q7 respectively For additional details, see Appendix C in the earnings release

42 Regulation G reconciliations 4 Table 3: Normalized ROE Reconciliation of GAAP to Non-GAAP measures LTM ending June 30, 208 ($ in millions) E-AR E-LA E-MS E-NO E-TX Utility As-reported earnings available to common stock (a) Add back: Preferred dividend requirement (b) Income taxes (c) (4.0) (62.7) As-reported income before income taxes (d) = (a)+(b)+(c) ,332.7 Less certain items (pre-tax): Weather (e) (5.4) 6.6 (3.) (5.) Special item (f) Unprotected excess ADIT (g) (07.6) (3.5) (27.2) - - (278.) Normalized income taxes before taxes (h) = (d)-(e)-(f)-(g) ,560.3 Affiliated preferred (i) Normalized income before income taxes, adjusted for affiliate preferred (j) = (h)-(i) ,432.7 State-specific standard income tax rate 2 (k) 33.48% 34.00% 32.93% 32.77% 29.43% 33.30% Income tax at state-specific standard rate (l) = (j)*(k) Normalized earnings (m) = (h)-(l)-(b) ,07.7 Average common equity (n) 2, ,376.3, ,204.6,265.8 As-reported ROE (a)/(n) 7.9% 7.3% 0.5%.% 7.7% 8.4% Normalized ROE 3 (m)/(n) 8.% 9.6% 0.8%.2% 7.8% 9.5% Calculations may differ due to rounding Utility does not equal the sum of the operating companies due primarily to SERI (as-reported income ~$85M, normalized income ~$9M and average common equity ~$736M) and preferred dividend requirements of Entergy Utility Holding Co. 2 Represents a weighted average rate over last twelve months 3 Excludes special items and normalizes weather and income taxes; does not reflect regulatory ROE, which includes other adjustments

43 Regulation G reconciliations 42 Table 4: Parent debt to total debt, excluding securitization debt Reconciliation of GAAP to Non-GAAP measures 2Q8 ($ in millions) 2Q8 Entergy Corporation notes: Due September Due July Due September Total parent long-term debt,850 Revolver draw 390 Commercial paper,945 Total parent debt (a) 4,85 Total debt 7,88 Less securitization debt 483 Total debt, excluding securitization debt (b) 7,398 Parent debt to total debt, excluding securitization debt (a)/(b) 24.% Calculations may differ due to rounding

44 Regulation G reconciliations 43 Table 5: Operational FFO to debt, excluding securitization debt Reconciliation of GAAP to Non-GAAP measures 2Q8 ($ in millions) 2Q8 OCF (LTM) 2,884 AFUDC-borrowed funds (LTM) (53) Less working capital in OCF (LTM): Receivables (49) Fuel inventory () Accounts payable 90 Prepaid taxes and taxes accrued 28 Interest accrued 3 Other working capital accounts (48) Securitization regulatory charge 23 Total 46 FFO (LTM) 2,685 Add back FFO specials (LTM): Items associated with decisions to close or sell EWC nuclear plants (pre-tax) - Operational FFO (LTM) (a) 2,685 Total debt 7,88 Less securitization debt 483 Total debt, excluding securitization debt (b) 7,398 Operational FFO to debt, excluding securitization debt (a)/(b) 5.4% Calculations may differ due to rounding