Investor Meetings. Aug , 2015

Transcription

1 Investor Meetings Aug ,

2 Caution Regarding Forward-Looking Statements and Regulation G Compliance 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 2015 operational earnings guidance, its current financial and operational outlook, and other statements of Entergy s plans, beliefs or expectations included in 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 rate proceedings, formula rate plans and other cost recovery mechanisms; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) nuclear plant relicensing, operating and regulatory 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 VY or any of Entergy s other 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 proposed acquisition of the Union Power Station near El Dorado, Arkansas and the proposed combination of ELL and EGSL, 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 and (h) economic conditions and conditions in commodity and capital markets during the periods covered by the forward-looking statements. This presentation includes the non-gaap financial measures of normalized ROE and credit metrics (parent debt to total debt, operational FFO to debt and debt to operational adjusted EBITDA) when describing Entergy s results of operations and financial performance. We have prepared reconciliations of these measures to the most directly comparable GAAP measure. These reconciliations can be found on slide Additional information can be found in Entergy s investor earnings releases, which are posted on our website at Definitions of abbreviations and acronyms used in this presentation are provided on slides

3 What Has Changed? Section Slides Changes Utility Investing in infrastructure 9 Updated resources and capacity Cost recovery mechanisms 10 Added percent of investment under constructive regulatory mechanisms Book ROE 12 Information taken from 2Q15 earnings call webcast slides EWC EWC nuclear fleet capacity factors 14 Updated 2Q15 capacity factor Price disclosures 15 and 17 Updated prices through 8/7/15 2

4 Corporate Summary Entergy s Businesses More than $12 billion revenues 13,000 employees Utility 6 electric utilities in 4 contiguous states 2.8 million utility customers 22,000 MW generating capacity 15,500 miles of transmission lines Entergy Wholesale Commodities Nuclear units (4,406 MW) CCGT plants (796 MW) Wind facilities (80 MW) Coal facilities (181 MW) Nuclear plant managed (800 MW) 3

5 2015 To Do List Indicative Timing for Significant Developments 1 (subject to change) 1Q 2Q 3Q 4Q Ninemile 6 ceremony AR rate case filing Lake Charles transmission project announced AR, MS legislation passed Draft AR federal Regional Haze plan Western RFP announcement TX rate case filing (withdrawn) Amite South RFP selection Algiers asset transfer order from CCNO TX legislation passed WOTAB CCGT RFP announcement CZM decision on whether or not to accept appeal (appeal accepted) EGSL/ELL business combination decision Final EPA greenhouse gas rule Union Power Station transaction close TX rate order (withdrawn) AR rate case settlement deadline Final AR federal Regional Haze plan (delayed 2016) 1 Table provides estimated timing for completion of key initiatives, which are subject to regulatory approvals or other requirements 4

6 Utility Overview 2014 Electric Retail Sales; % 1 EAI EGSL ELL Residential Industrial Commercial 2 Governmental 2014 Generation Portfolio; % 1 Coal Nuclear Gas/Oil/Hydro 66 Electric utility 705,000 electric customers Authorized ROE: 9.5% Base rate case filed on 4/24/15 (10 month jurisdictional deadline) Forward test year FRP expected to go into effect in 2017 EMI Electric utility 445,000 electric customers Authorized ROE: 10.07% FRP with forward looking features Electric and gas utility 399,000 electric customers 94,000 gas customers Authorized ROE ranges: Electric % Gas % Electric FRP, Gas Rate Stabilization Plan ENOI Electric and gas utility 175,000 electric customers 106,000 gas customers Authorized ROE ranges: Electric % Gas % Rate cases Electric utility 686,000 electric customers Authorized ROE range: % FRP ETI Electric utility 433,000 electric customers Authorized ROE: 9.8% Rate cases 1 % of 2014 MWhs for electric retail sales and % of owned and leased MW capability for generation portfolio 5

7 Our Opportunity Smart Growth Productive Investments Benefit Customers Investments to modernize infrastructure, strengthen reliability and meet new compliance standards promote better service to customers Earning Authorized Returns Supports Growth Earning authorized returns and constructive regulation help attract capital to make needed investment Sales Growth 1 Helps Control Customer Rates Low rates today and continuing to manage costs help attract new business, which in turn allows us to keep rates low and support further economic growth and prosperity in our region 1 Not affirming previously provided sales growth rate projection through 2017, plan to provide an update at the EEI financial conference 6

8 Productive Investment Opportunity ~$3 to $4B rate base growth through 2017 Projected Rate Base as of November ; $B 30 ~5 7% CAGR (2014 base) ~17 ~20 21 ~ E 19E 1 Internal estimate based on last-approved rate base adjusted for assumed changes in the major rate base components; deferred taxes are deducted from rate base for all Utility Operating Companies, including EAI 7

9 Modernizing Our Fleet ~12,700 MW at least 30 years old Utility Non-Nuclear Plant Capability; MW by Year of Commercial Operation 1 2,500 2,000 Gas 1,500 Gas/Oil 1, Coal Oil 1 ~17,000 MW, excludes hydro units 8

10 Investing in Infrastructure, Supporting Industrial Growth AR Expected ISD (subject to change) Resource Capacity Year-end 2015 Union Power Station 1,980 MW MS 2016 Driver Project and Mud Lake Project lines 230 kv each 2018 Lake Charles* 500 kv TX Madison County line 230 kv Western LA WOTAB Amite South DSG 2019 New Orleans CT ~195 MW St. Charles* CCGT ~980 MW* 2020 WOTAB CCGT* up to 1,000 MW* WOTAB CT ~380 MW 2021 Texas CCGT up to 1,000 MW* Western region line Southeast LA terminal equipment upgrade 230 kv 230 kv * Reflects updates since handout for June investor meetings 9

11 Progressive Cost Recovery Mechanisms Creating shared value for our four key stakeholders Mechanism EAI EGSL ELL EMI ENOI ETI FRP Transmission rider Distribution rider (new legislation) (expired) Capacity rider (FRP) (FRP) FRP alternate ratemaking study (extended) (non-affiliate PPAs) Rider/FRP adjustment for plant acquisition FRP adjustment for major projects Energy efficiency Forward looking (new features in FRP legislation) ~90% of our $8B of planned investment from 2015 through 2017 falls under a formula rate plan, rider or other constructive regulatory mechanism* * Reflects updates since handout for June investor meetings 10

12 Low Customer Rates Our rates across all classes are ~20% below the national average Utility Customer Rates; $/MWh for LTM 3/31/ Residential EMI ETI ENOI EAI ELL EGSL Industrial EMI ENOI EAI EGSL ETI ELL 0 11

13 Book ROE Varies by Jurisdiction LTM 6/30/15 Book ROE 1 ; % 16 FRP Rate Case Filed 2Q Excluding write-off As-Reported EAI EGSL ELL EMI ENOI ETI Utility 1 See slide 37 for calculation Chart reflects GAAP ROE, with adjustments for weather, special items and tax rates; regulatory ROE may vary 12

14 EWC Overview Region Breakdown; % Other 2 MISO 22 NEPOOL 23 NYISO 53 EWC Nuclear Plants Entergy Purchase Date Commercial Operation Date Indian Indian FitzPatrick Point 2 Point 3 Palisades Pilgrim 11/21/00 9/6/01 11/21/00 4/11/07 7/13/99 July 1975 August 1974 August 1976 December 1971 December 1972 License Expiration 10/17/34 9/28/ /12/15 3/24/31 6/8/32 Date Net MW Owned 838 1,028 1, Generation Portfolio; % Gas & Oil 14 Other 5 Nuclear 81 Energy Market NYISO A NYISO G NYISO G MISO (closest hubs) Indiana EWC Non-Nuclear Plants Commercial Operation Date Fuel Type/ Technology ISES 2 Nelson 6 RS Cogen RISEC Top of Iowa NEPOOL Mass Hub White Deer Coal Coal CCGT Cogen CCGT Wind Wind Net MW Owned Market MISO MISO MISO ISO-NE MISO SPP 1 On 9/28/13, Indian Point 2 began operating under timely renewal 13

15 Operational Excellence Is Foundational EWC Nuclear Fleet Capacity Factors; %* Impacts from planned refueling outages and planned coast down for VY Q14 4Q14 1Q15 2Q15 Operational excellence includes: Plant operations Cost management Hedging strategy and execution Constructive participation in regulatory processes * Reflects updates since handout for June investor meetings 14

16 Energy Prices Are Volatile EWC Northeast Nuclear Energy Prices; $/MWh 1* /30/15 (Solid: weighted by capacity) 8/7/15 (Solid: weighted by capacity) 1* /30/15 (Dotted: weighted by open position) Bal 15E 16E 17E 18E 19E 1 Does not take into account unit contingent discounts or hedging costs; Balance of 2015 prices as of Aug. 7, 2015 reflect Day-Ahead Market prices for July 1, 2015 through Aug. 7, 2015 and forwards thereafter * Reflects updates since Aug. 4, 2015 earnings call webcast slides 15

17 Asymmetric Hedging to Capture Price Increases EWC Nuclear Revenue Sensitivity on Contracted Energy 1 Avg. Contracted Revenue Change; $/MWh (5) (10) (20) (10) Market Price Change; $/MWh 2017 Balance of Avg. expected contracted revenue/mwh Balance of 2015: $ : $ : $ Based on market prices and contracted revenue projections as of June 30, 2015; see Aug. 4, 2015 earnings call webcast slides for generation and capacity sold information 16

18 Capacity Markets Working to Provide Market Signals NYISO Cleared Capacity Prices For Delivery January 2014 October 2015; $/kw-mo* Spot LHV Strip Jan-14 Jul-14 Jan-15 Jul Monthly LHV 8 0 Jan-14 Jul-14 Jan-15 Jul-15 FCA9 15 Forward Capacity Auctions SEMARI Zone 10 Reconfiguration Auctions 5 FCA8 0 Monthly Auctions existing resources Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan Spot ISO-NE Capacity Prices For Delivery January 2014 May 2019; $/kw-mo Monthly ROS ROS Strip * Reflects updates since Aug. 4, 2015 earnings call webcast slides 17

19 Advocating for Energy Price Formation Improvements Ensuring long-term health of energy markets Principles Market clearing price set by full cost of marginal decision Transparency required for well-functioning markets Prices should reflect start-up and no-load costs when clearing a generator offer and reflect reliability-driven operator actions in both the day ahead and real time market clearing price Move costs out of uplift (opaque and difficult to hedge) and into locational marginal prices that are visible to all Correct day ahead commitment and pricing Unwarranted mitigation is detrimental to market Co-optimized energy and reserve prices should provide market signals that encourage proper day ahead and real time reliability/reserve planning, unit commitment and system dispatch Absent evidence of market power, participants must be allowed to submit risk-adjusted offers and bids without fear of mitigation 18

20 IPEC License Renewal Proceedings Progressing Expect process to successfully continue through the decade Path NRC CZM WQC/ SPDES Background Track 1 appeals resolved in Entergy s favor; two appeals remain pending, NRC ordered further briefing to assist with final decisions Track 2 hearings scheduled 11/16/15 through 11/20/15 Path 1: IPEC held grandfathered, thus exempt from CZM Act review in 5-0 decision by NYS Appellate Division, December 2014; NY Court of Appeals (highest state court) granted NYSDOS leave to appeal 6/4/15; final party brief due 1/14/16 Path 2: NRC staff is considering filings by ETR, NYSDOS on whether IPEC was previously reviewed under CZM Act; once staff states its position, disappointed party may propose a contention Path 3: Consistency certification withdrawn November 2014; NYSDOS disputes withdrawal; renewed standstill agreement preserves parties positions through 9/28/15, absent any extension NYSDOS indicated it will issue its consistency determination by 10/5/15 Path 1: Per 2/3/15 ALJ ruling, hearings on NYSDEC Staff s alternative BTA proposal (fish protection outages) and other pending issues scheduled for 9/14/15 through 10/2/15 Path 2: Waiver notice pending for WQC before NRC while litigation continues 19

21 Strong Cash and Credit Profile Credit Metrics Metric Target At 2Q15 Credit Ratings (positive outlook in green) Entity S&P Moody s OCF $13 $14B E $5.2B cumulative EAI A- (pos.) A3 (pos.) EGSL A- (pos.) A2 Parent Debt to Total Debt 18 20% 2016E 2017E 20.3% ELL A- (pos.) A2 EMI A- (pos.) A3 FFO to Debt 13 23% 2015E 2017E 28.4% ENOI A- (pos.) Baa3 (pos.) ETI A- (pos.) Baa1 Debt to EBITDA E 2017E 3.9 SERI A- (pos.) Baa1 Entergy BBB (pos.) Baa3 20

22 Conclusions Utility Advancing the Capital Plan Capital investment required to meet resource needs of the operating companies in constructive environment Strong fundamentals support the Industrial Renaissance (low natural gas prices; sophisticated, connected infrastructure and a ready, talented workforce) EWC Reliable, Important Assets Located in Volatile Markets Plants play a critical role in their regions to achieve economic, reliability and environmental objectives Improved regulatory position at Indian Point; believe this asset will operate well into the next decade or beyond Committed to investment grade credit and capital returns 21

23 Appendix I Utility Operating Company Information 22

24 EAI Entergy Arkansas LTM 6/30/15 Book ROE; % Book Normalized 1 EAI Electric Utility Metric Customers 705,000 Authorized ROE 9.5% Capital Investment vs. Depreciation as of February 2015; $M 1, Detail Last Completed Rate Case Approved Rate Base $4.802B retail rate base, as of 12/31/12 on 1/9/14 with known and measurable changes through 12/31/13 WACC (after-tax) 4.35% Equity Ratio 28.98% including $1.74B ADIT at 0% cost (45.02% traditional equity ratio) Regulatory Construct Rate case; proposed forward test year FRP Riders MISO, capacity costs, Grand Gulf, energy efficiency, fuel and purchased power Currently Pending Rate Case Filed rate case on 4/24/15, see Additional Regulatory Highlights for details Depreciation expense E 16E 17E Capital 1 See slide 37 for calculation 23

25 EAI Additional regulatory highlights Base Rate Case APSC Docket U Base rate case filed with the APSC on 4/24/15 Requested newly-approved progressive rate mechanisms designed to reduce regulatory lag, facilitate infrastructure investment and encourage economic development in Arkansas Requested a Formula Rate Review Rider based on a forward test year that includes provisions to allow for known changes in expenses and revenues for the rate effective period Rate base $5.929B based on 3/31/15 test year, including pro-forma adjustments to reflect capital additions to rate base and other known and measurable changes through 3/31/ % WACC (10.2% ROE, 30.4% equity ratio, including $1.9B accumulated deferred income taxes at 0% cost) 44.1% traditional equity ratio Estimated full year net income impact of request ~$120M Key Dates Date Event 9/29/15 Staff/intervenors direct testimony due 10/27/15 Company rebuttal 11/24/15 Staff/intervenors surrebuttal 12/10/15 Company sur-surrebuttal 12/31/15 Settlement filing date 1/19/16-1/22/16 Hearing Select Major Components of Rate Increase Category $M Power Block 2 of Union Power Station 53 Depreciation and amortization 30 Return on rate base 77 Rate schedule revenue decrease 15 Storm reserves and vegetation management 12 ROE (10.2% ask vs. 9.5% current) 21 Payroll and pension costs 21 Incentive compensation 22 Other 18 Sub-total 269 Rider offsets and reductions (102) Total

26 EGSL Entergy Gulf States Louisiana LTM 6/30/15 Book ROE; % Book Normalized 1 See slide 37 for calculation 1 EGSL Electric and Gas Utility Metric Detail Electric Detail Gas Customers 399,000 94,000 Authorized ROE % % Last Filed Rate Base $2.666B, filed on 2/15/13; based on 6/30/12 test year WACC (after-tax) 7.95% 7.24% Equity Ratio 51.72% 51.32% Regulatory 3-year FRP, Construct test years (60/40 customer/company sharing outside bandwidth) Riders/Specific Recovery 1, Capacity, MISO, Ninemile 6 outside sharing, fuel $0.055B, filed on 1/30/15; based on 9/30/14 test year Rate Stabilization Plan (50BP dead band, BP 50% sharing, >200BP adjust to 200BP plus 75BP sharing) Gas infrastructure Capital Investment vs. Depreciation as of February 2015; $M Depreciation expense E 16E 17E Capital 25

27 ELL Entergy Louisiana LTM 6/30/15 Book ROE; % Book Normalized 1 1 See slide 37 for calculation ELL Electric Utility Metric Capital Investment vs. Depreciation as of February 2015; $M 1, Detail Customers 686,000 Authorized ROE Range % Last Filed Rate Base $4.475B, based on 6/30/12 test year; ~$645M on 2/15/13 rate base adj. for Ninemile 6 (2015 average) WACC (after-tax) 7.95% Equity Ratio 52.8% Regulatory Construct 3-year FRP, test years (60/40 customer/company sharing outside bandwidth); $10M rate change effective December 2014 and cumulative $30M cap on increases over the 3-year FRP cycle Ninemile 6 Rate Change Riders/Specific Recovery $99.2M effective January 2015 with billings of $26.6M to EGSL and $21.3M to ENOI Capacity, MISO, Ninemile 6 outside sharing mechanism, fuel Depreciation expense E 16E 17E Capital 26

28 EGSL and ELL Additional regulatory highlights Business Combination LPSC Docket U Transaction is expected to create nearly $140M in customer benefits in the first ten years, including guaranteed customer credits of $107M Proposed rates for the combined company are designed to be revenue neutral and to minimize costshifting among customers On 7/24/15, all parties affirmed their support or non-opposition to the Uncontested Stipulated Settlement filed by EGSL, ELL and the LPSC Staff Approval for business combination received from FERC on 4/3/15 (Docket EC15-47) FERC also approved dockets to allow the new company to issue and sell securities (Docket ES15-11) and assume liabilities and to transfer net operating loss carryovers to the new company (Docket AC15-117) Approval also required from NRC (for direct and indirect license transfers) While not a part of the business combination, on 5/14/15, the CCNO unanimously approved the transfer of Algiers assets to ENOI from ELL; FERC approved Algiers transfer on 4/3/15 (Docket EC ) Key Dates Date Event 8/26/15 LPSC B&E Meeting (decision on business combination requested) 9/1/15 Target date on which Algiers assets will transfer to ENOI from ELL 10/1/15 Target close date for business combination transaction close 27

29 EMI Entergy Mississippi LTM 6/30/15 Book ROE; % Excluding write-off Book Normalized 1 1 See slide 37 for calculation EMI Electric Utility Metric Detail Customers 445,000 Authorized ROE 10.07%; annual redetermination based on formula Rate Base $2.014B, as of 12/31/15 test year WACC (after-tax) 7.51% Equity Ratio 47 48% based on 2015 forecast Regulatory Construct Capital Investment vs. Depreciation as of February 2015; $M FRP with forward looking features; annual redetermination subject to performance based bandwidth calculation Last Rate Change Net rate increase of $16M (base rates and riders) effective 1/30/15, including $16M depreciation increase Riders Power Management Rider, Grand Gulf, Fuel, MISO, Unit Power Cost Depreciation expense E 16E 17E Capital 28

30 ENOI Entergy New Orleans LTM 6/30/15 Book ROE; % Book Normalized 1 ENOI Electric and Gas Utility Metric Detail Electric Detail Gas Customers 175, ,000 Authorized ROE Range % % Last Filed Rate Base on 5/31/12 $0.299B, based on $0.089B, based on 12/31/11 test year 12/31/11 test year WACC (after-tax) 8.58% 8.40% Equity Ratio 50.08% 50.08% Regulatory Construct Rate case Rate case Riders/Specific Recovery Fuel, Capacity (i.e., Ninemile 6) Purchased Gas Capital Investment vs. Depreciation as of February 2015; $M (updated to reflect Union Power Station recent developments) Depreciation expense E 16E 17E Capital 1 See slide 37 for calculation 29

31 ETI Entergy Texas LTM 6/30/15 Book ROE; % ETI Electric Utility Capital Investment vs. Depreciation as of February 2015; $M (updated to reflect Union Power Station recent developments) 400 Metric Detail Customers 433,000 Authorized ROE 9.8% Last Filed Rate Base $1.634B, based on 3/31/13 adjusted test on 9/25/13 year WACC (after-tax) 8.22% Equity Ratio 48.6% Regulatory Construct Rate case Last Rate Change DCRF increase of $3.6M effective 1/1/15 Riders Rate case expenses; RPCE payments; riders in place or available include fuel, capacity, distribution and transmission, among others Depreciation expense Book Normalized 1 See slide 37 for calculation E 16E 17E Capital 30

32 SERI Energy and Capacity Allocation 2 ; % ENOI 17 EMI 33 ELL 14 EAI 36 SERI Generation Company Metric Detail Principal asset An ownership and leasehold interest in the Grand Gulf Nuclear Station Authorized ROE 10.94% Last Calculated Rate $1.341B, as of 6/30/15 Base WACC (after-tax) 8.99% Equity Ratio 65% 1 Regulatory Construct Monthly cost of service Capital Investment vs. Depreciation as of February 2015; $M Depreciation expense GAAP FERC ratemaking treatment (dotted) E 16E 17E Capital 1 Sale/leaseback is 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 31

33 Union Power Station Acquisition Regulatory approval process Transaction Overview OpCo MW Proposed Recovery Method EAI 495 Proposed recovery through Capacity Acquisition Rider starting the month following closing, until rates from EAI base rate case are effective EGSL 990 Proposed recovery through the Additional Capacity Mechanism of the FRP starting the month following closing ENOI 495 Proposed recovery through a capacity rider until next base rate case Procedural Schedules Other Details Purchase price of $948M Contingent on the buyers obtaining necessary regulatory approvals (including full cost recovery) from various federal and state regulatory authorities Currently remains on track for close by the end of 2015 Event EGSL (U-33510) EAI ( U) ENOI (docket TBD) Filing 1/13 1/16 8/15 (target date) Supplemental testimony describing changes 7/31 n/a Staff, Intervenor testimony, cross-answering 8/24 7/2, 8/21 Company rebuttal testimony 9/4 7/31, 8/28 TBD Pre-hearing conference/statements 9/11 n/a Hearing 9/16 9/17 9/15 EGSL filed supplemental testimony regarding changes to the UPS Acquisition now that EGSL is retaining 100% of two power blocks; Staff/Intervenor responsive testimony will be filed prior to the 9/16/15 hearing on the full merits of the case FERC 203 filing made 3/17/15; other FERC filings made on 4/1/15 HSR Antitrust Improvements Act filing made 2/27/15; on 3/30/15, DOJ requested additional information and documentary material from each of the purchasing companies and Union Power Partners, which had the effect of extending the DOJ review period 32

34 Appendix II Regulation G Reconciliations and Abbreviations and Acronyms 33

35 Regulation G Reconciliations Table 1: Parent Debt to Total Debt Reconciliation of GAAP to Non-GAAP Measures As of June 30, 2015 ($ in millions) Entergy Corporation notes: 2Q15 Due September Due January Due September Total parent long-term debt 1,500 Revolver draw 271 Commercial paper 895 Total parent debt (a) 2,666 Total debt 13,858 Less securitization debt 734 Total debt, excluding securitization (b) 13,124 Parent debt to total debt (%) (a)/(b) 20.3% Calculations may differ due to rounding 34

36 Regulation G Reconciliations Table 2: Operational FFO to Debt Reconciliation of GAAP to Non-GAAP Measures As of June 30, 2015 ($ in millions) 2Q15 Net cash flow provided by operating activities (LTM) 3,699 AFUDC borrowed funds (30) Less working capital in OCF: Receivables 45 Fuel inventory (32) Accounts payable (164) Prepaid taxes and taxes accrued (43) Interest accrued 5 Other working capital accounts 104 Securitization regulatory charge 99 Total 14 FFO (LTM) 3,655 FFO specials HCM implementation expenses (pre-tax) 15 Decision to close VY (pre-tax) 57 Operational FFO (LTM) (a) 3,727 Total debt 13,858 Less securitization debt 734 Total debt, excluding securitization (b) 13,124 Operational FFO to Debt (a)/(b) 28.4% Calculations may differ due to rounding 35

37 Regulation G Reconciliations Table 2 (continued): Debt to Operational Adjusted EBITDA Reconciliation of GAAP to Non-GAAP Measures As of June 30, 2015 ($ in millions) 2Q15 As-Reported consolidated net income (LTM) 817 Add back: interest expense 636 Add back: income tax expense 494 Add back: depreciation and amortization 1,331 Add back: regulatory charges (credits) 10 Subtract: securitization proceeds 130 Subtract: interest and investment income 196 Subtract: AFUDC-equity funds 59 Add back: decommissioning expense 278 Adjusted EBITDA (LTM) 3,181 Add back: special item: HCM implementation expenses (pre-tax) 4 Add back: special item: decision to close VY (pre-tax) 143 Operational Adjusted EBITDA (LTM) (c) 3,328 Debt to Operational Adjusted EBITDA (b)/(c) 3.9 Calculations may differ due to rounding 36

38 Regulation G Reconciliations Table 3: Normalized ROE Reconciliation of GAAP to Non-GAAP Measures LTM Ending June 30, 2015 ($ in millions) EAI EGSL ELL EMI ENOI ETI Utility 1 As-reported earnings available to common stock (a) Add back: Preferred dividend requirement (b) Income taxes (c) As-reported income before income taxes (d) = (a)+(b)+(c) ,304.0 Less certain items (pre-tax): Transmission spin-merge expenses (e) HCM implementation expenses (f) 0.5 (0.8) (1.2) (0.7) (0.2) (0.4) (2.9) Weather (g) (10.1) (1.7) 11.0 (0.6) Normalized income before taxes (h) = (d)-(e)-(f)-(g) ,305.2 State-specific standard income tax rate (i) 39.23% 38.48% 38.48% 38.25% 38.48% 35.00% 38.50% Income tax at state-specific standard rate (j) = (h)*(i) Normalized earnings applicable to common stock (k) = (h)-(j)-(b) Affiliated preferred (l) Normalized earnings applicable to common stock, adjusted for affiliate preferred (m) = (h)-[(h)-(l)]*(i)-(b) Average common equity (n) 1, , , ,092.8 As-reported ROE (a)/(n) 5.3% 11.3% 10.2% 7.1% 15.0% 8.3% 9.3% Normalized ROE (m)/(n) 5.5% 11.2% 9.5% 7.8% 12.8% 8.8% 9.2% As-reported regulatory asset write-off (pre-tax) (o) 56.2 Tax affected regulatory asset write-off (o)*(1-i) 34.8 Impact of write-off on ROE [(o)*(1-i)]/(n) 3.5% 1 Utility does not equal the sum of the operating companies due primarily to SERI as-reported income of $93M, normalized income of ~$105M, average common equity of $839M and income taxes recorded at Entergy Louisiana Holdings (parent of ELL) Calculations may differ due to rounding 37

39 Abbreviations and Acronyms Abbreviations and Acronyms ADIT Accumulated deferred income taxes ALJ Administrative law judge APSC Arkansas Public Service Commission BTA Best technology available CAGR Compound annual growth rate CCGT Combined cycle gas turbine CCNO Council of the City of New Orleans, Louisiana CT Simple cycle combustion turbine CZM Coastal zone management DCRF Distribution cost recovery factor rider DSG Downstream of Little Gypsy EAI Entergy Arkansas, Inc. EGSL Entergy Gulf States Louisiana, L.L.C. ELL Entergy Louisiana, LLC EMI Entergy Mississippi, Inc. ENOI Entergy New Orleans, Inc. EPA U.S. Environmental Protection Agency ETI Entergy Texas, Inc. ETR Entergy Corporation EWC Entergy Wholesale Commodities FCA Forward capacity auction Abbreviations and Acronyms FERC Federal Energy Regulatory Commission FitzPatrick James A. FitzPatrick Nuclear Power Plant FRP Formula rate plan GAAP Generally accepted accounting principles HCM Human Capital Management program HSR Hart-Scott-Rodino Indian Point 2 Unit 2 of Indian Point Energy Center (nuclear) Indian Point 3 Unit 3 of Indian Point Energy Center (nuclear) IPEC Indian Point Energy Center (nuclear) ISD In-service date ISES Independence Steam Electric Station (coal) ISO Independent system operator ISO-NE ISO New England LHV Lower Hudson Valley LPSC Louisiana Public Service Commission LTM Last twelve months MISO Midcontinent Independent System Operator, Inc. MPSC Mississippi Public Service Commission NEPOOL New England Power Pool NRC Nuclear Regulatory Commission 38

40 Abbreviations and Acronyms (continued) Abbreviations and Acronyms NYISO New York Independent System Operator, Inc. NYS New York State NYSDEC New York State Department of Environmental Conservation NYSDOS New York State Department of State O&M Operation and maintenance expense OpCo Utility operating company Palisades Palisades Power Plant (nuclear) Pilgrim Pilgrim Nuclear Power Station (nuclear) PPA Purchased power agreement or power purchase agreement PUCT Public Utility Commission of Texas RFP Request for proposal RISEC Rhode Island State Energy Center ROE Return on equity ROS Rest of state RPCE Rough production cost equalization SEMARI Southeast Massachusetts/Rhode Island SERI System Energy Resources, Inc. SPDES State Pollutant Discharge Elimination System SPP Southwest Power Pool VY Vermont Yankee Nuclear Power Station (nuclear) WACC Weighted-average cost of capital WOTAB West of the Atchafalaya Basin WQC Water Quality Certification 39

41 Entergy s Investor Relations App Entergy s IR app provides a convenient way to access the company's latest financial news and information, including financial releases, presentations and Securities and Exchange Commission filings, as well as the ETR stock quote. The mobile web app is available at iretr.com. 40