A N N U A L R E P O R T

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1 E N T E R G Y C O R P O R A T I O N A N D S U B S I D I A R I E S 2013 ANNUAL REPORT

2 2013 Entergy Corporation (NYSE: ETR), which celebrated its 100th birthday in 2013, is a Fortune 500 integrated energy company engaged primarily in electric power production and retail distribution operations. Entergy owns and operates power plants with approximately 30,000 megawatts of electric generating capacity, including more than 10,000 megawatts of nuclear power, making it one of the nation s leading nuclear generators. Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas. Entergy has annual revenues of more than $11 billion and approximately 14,000 employees. This year, in addition to our Annual Report to Shareholders, Entergy is producing an online-only Integrated Report for 2013 that combines material previously presented in our annual report to shareholders and sustainability report. Producing one integrated report reinforces our belief that our stakeholders owners, customers, employees and communities are linked and that we must deliver sustainable value to all stakeholders in order to succeed. We encourage you to visit our 2013 Integrated Report website. It presents an interactive version of our 2013 economic, environmental and social performance that includes videos, feature stories and other material. The website can be found at integratedreport.entergy.com. Contents 1 Letter To Our Stakeholders 4 Forward-Looking Information and Regulation G Compliance 6 Five-Year Summary of Selected Financial and Operating Data 6 Comparison of Five-Year Cumulative Return 10 Management s Financial Discussion and Analysis 55 Report of Management 56 Report of Independent Public Accounting Firm 57 Internal Control Over Financial Reporting 58 Consolidated Income Statements 59 Consolidated Statements of Comprehensive Income 60 Consolidated Statements of Cash Flows 62 Consolidated Balance Sheets 64 Consolidated Statements of Changes in Equity Investor Information

3 Letter to Our Stakeholders: 2013 was a year of continuing change and transition for Entergy. That was the expectation I described in my first letter to you, and it certainly lived up to the billing. In 2013, we defined our vision and mission and set seven strategic imperatives. We pursued transformational strategies in our transmission and our merchant generation businesses. We restructured and restaffed our organization. At a time when many of these major initiatives involved retail and federal regulatory proceedings, we had a full slate of the business-as-usual rate cases, license renewal and other regulatory activity underway. In a normal year, just a few or even any single initiative would be a significant undertaking. All combined, it made for a complex and challenging year for all our stakeholders. If there is one word that describes what we were working toward, it would be clarity. We worked to bring clarity to our purpose, our priorities and our structure. Clarity helps sharpen our focus and improve our performance. Clarity makes it easier for all of our stakeholders our owners, customers, employees and communities to support our company and help drive our success. Our many accomplishments in 2013 set the stage for exciting opportunity in the years ahead. With a lower cost position, an improved risk profile and clarity, we believe Entergy is positioned to fulfill our mission to deliver sustainable value to our four stakeholder groups. 2013: A Complex and Challenging Year On balance, we largely accomplished what we set out to do in We joined MISO. We transferred functional control of our transmission system to the Midcontinent Independent System Operator, Inc. or MISO, in December It was the culmination of extensive efforts by more than 600 Entergy employees over many years. We project the move will provide approximately $1.4 billion in customer savings in the first decade in MISO. We obtained new regulatory mechanisms. We established or renewed several regulatory mechanisms that align our customers and the company s success. The settlement in the Louisiana rate case filings extended longstanding formula rate plans for three years. The Public Utility Commission of Texas approved a new capacity rider mechanism, adding to the existing distribution and transmission riders already approved. New riders were also approved for MISO costs in Arkansas and Louisiana. We received a formula rate plan adjustment in Mississippi. These progressive mechanisms all structurally link returns to our ability to manage costs within our control. We changed the way we work. Through our human capital management initiative, we redesigned and restaffed our organization to improve efficiency and effectiveness, and lower costs. The process was particularly arduous for our employees. We expect to realize significant cost savings beginning in 2014 through the elimination of positions, changes to our compensation and benefit practices, and renegotiation of major contracts. We took action to improve EWC results. We applied, with urgency, our efforts to improve results at Entergy Wholesale Commodities, which has been struggling in a low wholesale power price environment. For the last few years, our business plan focus has been aimed at improving our equipment reliability and improving our outage performance. We began to see results from those efforts in the second half of 2013 when we had no extended forced outages, compared to extended outages at Palisades and Pilgrim nuclear plants in the first half of We accelerated the human capital management initiative to obtain the results faster in this business. We made the decision to close or retire one nuclear and one fossil unit based on economics and sold a small business that was better suited to grow with another company. The decision to close the Vermont Yankee Nuclear Power Station at the end of its current fuel cycle in 2014 was a difficult one. We know all our stakeholders are affected by this decision, but hit hardest are Vermont Yankee employees and the local communities. Making the decision when we did allowed time to plan for a safe and orderly shutdown. The decision also paved the way to improve relations within the state of Vermont. In December, we reached a settlement agreement that helps resolve certain longstanding issues and sets a path for a constructive and transparent working relationship to facilitate the resolution of longer-term issues.

4 Entergy Corporation and Subsidiaries We contributed to our communities. In 2013, Entergy and the Entergy Charitable Foundation invested more than $15 million in our communities. Entergy employees and retirees logged a record 100,477 hours of volunteer service valued at $2.2 million. These efforts enhanced the quality of life and improved the economic viability of our communities and supported our commitment to the environment. Most importantly, our employees were safe. Entergy employees turned in their best-ever safety performance. Our employees reduced the OSHA recordable accident index by more than 30 percent from 2012 to a record low level for our company. However, our contractor safety did not match our employee results. On March 31, 2013, we experienced a major industrial accident at our Arkansas Nuclear One plant when a contractor s crane collapsed while moving a generator stator. One contractor was killed and several others were injured. In a remarkable effort, ANO and Entergy employees, along with retirees, multiple third-party experts and others came together and restored the plant to operation in less than six months. Unfortunately, this was one of four contractor fatalities we experienced in We will continue to focus our efforts to raise safety awareness and identify and reduce risks for our workforce. But challenges remain. While we made excellent progress in 2013, all did not go as planned. In December, Entergy and ITC Holdings Corp. mutually agreed to end our pursuit of the spin-off and merger of Entergy s transmission business. We strongly believe this transaction would have been in the best interest of all stakeholders, but by the end of the year, it was clear we did not have the regulatory support necessary to close the transaction. Our utility operating companies have operated our transmission system for over 100 years and now, alongside MISO and under its independent oversight, will plan for new transmission facilities to meet reliability standards and the needs of a vibrant, growing service territory. We were also disappointed in the rate case outcome in Arkansas given the implications the order has on our ability to create sustainable value for our stakeholders. Not only does it affect the returns we can deliver to our owners, it also affects our ability to help grow the state economy, invest in our local communities and provide engaging opportunities for our employees. The rate case decision by the Arkansas Public Service Commission did give us some tools to prepare for the future, particularly those mechanisms designed to help us operate in MISO and facilitate Entergy Arkansas exit from the System Agreement. However, other portions of the decision such as the low authorized return on equity and a construction financing formula that does not fully compensate us for our costs will make it more challenging for Entergy Arkansas to invest in expansion opportunities and technologies that foster the state s economic growth and public policy objectives. And because the Entergy Charitable Foundation and other strategic giving are funded by shareholders, lower earnings reduce the pool of dollars available for us to invest in local communities. Entergy Arkansas requested, and the Arkansas Public Service Commission granted, a rehearing on several issues and we hope for an improved outcome. Lastly, while our 2013 operational earnings performance was strong, near the top of our earnings guidance range in place at the beginning of the year, our total shareholder return based on stock price performance and dividends fell short of our goal. Entergy delivered total shareholder return of 4.4 percent in 2013 compared to a return of 11 percent for the Philadelphia Utility Index. This TSR performance ranked in the third quartile of our peer group due primarily to sustained low wholesale power prices, despite some improvement in spot and near-term power prices during the year, and licensing and regulatory issues related to our nuclear plants raising concerns over how long our plants will operate. Nevertheless, our overarching financial goal remains to deliver top-quartile total shareholder return over the long term, and the steps we took in 2013 to lower costs and improve our risk profile will help us achieve our goal. 2014: A Year of Opportunity With the progress we made in 2013, we are well-positioned to execute on our strategy. Grow Our Utility Business. We have a unique opportunity in our utility business to power the industrial renaissance that is occurring in the Gulf South region. The advent of shale gas has led to a disparity in worldwide energy prices favoring U.S. production facilities. The region we serve is poised to capitalize on a window of opportunity given our access to natural resources, infrastructure and receptive communities. In our organization redesign, we added to our economic development staff so that we can better partner with local officials to identify and capture growth opportunities. 2

5 Entergy Corporation and Subsidiaries We currently have in our potential pipeline approximately 85 industrial development projects in the region, totaling $65 billion in investment. The projects represent 2,400 megawatts of potential sales, not including incremental residential and commercial sales due to more than 42,000 jobs that could be created both directly and indirectly as a result of this development. Including only projects that are in our line of sight or the late stages of negotiation, we estimate compound annual weather-adjusted utility sales growth will be 2 to 2.25 percent over the period, or approximately 1 percent more than we would have projected without this industrial development activity. The rate advantage provided by Entergy utilities is an important factor helping to attract economic development to our region and capturing incremental sales growth. Our residential, commercial and industrial rates remain among the lowest in the nation. Our lower cost position and continued focus on operational excellence support our rate advantage and are key elements of our utility growth strategy, helping us to fund investment to improve reliability, meet sales growth, replace aging infrastructure and comply with new environmental or other regulatory requirements. Another key element is our focus on customer satisfaction. Last year, we lowered our customers outage duration and frequency measures, delivering our best performance in the past five years. We are now engaging with our customers in new and innovative ways online and through social media, text messaging and proactive phone messaging to improve their experience. Our residential customer satisfaction scores were the highest Entergy has ever earned, placing us in the top quartile. Preserve Optionality and Manage Risk at EWC. Our merchant business is currently challenged by sustained low wholesale power prices and regulatory uncertainty, particularly surrounding license renewal at Indian Point Energy Center. Our strategy is to preserve optionality the value of future investment opportunities in this business and manage risk. Key elements include a continued focus on excellence in our operations, effective hedging and constructive regulatory efforts most notably in the Indian Point license renewal process. While we accept the reality of where market prices are today, we have a point of view based on detailed fundamental market analysis that implies prices should be higher than currently anticipated. We are also active in advocating for change in wholesale market policies to adequately compensate operators for the value of reliability, fuel diversity and environmental benefits. Our EWC strategy is designed to position us to benefit if our point of view becomes the new reality, while maintaining downside risk protection for alternative scenarios. Keeping It Simple Clarity can be hard to find in a very dynamic industry where much is changing and uncertain. In this context, we will continue to push ourselves to clarify our strategy, processes and priorities as much as possible. Defining what we expect to achieve and how we will achieve it in a simple and clear way is essential for our stakeholders and our success. I want to personally express my thanks and awe of our employees for their hard work in 2013, their dedication to Entergy and their belief in our future. I also want to thank Renae Conley, who retired in 2013 after 14 years of service at Entergy, most recently as executive vice president of human resources and administration and formerly as president and chief executive officer of Entergy Gulf States Louisiana and Entergy Louisiana. Renae s many contributions to Entergy are too numerous to list. We wish her all the best. In 2013, we expanded the expertise of our board of directors, adding Retired Admiral Kirkland Donald. Admiral Donald s 37 years of honorable service culminated with his eight-year assignment as Director, Naval Nuclear Propulsion Program. His advice and counsel on a wide range of issues, including nuclear, will be extremely valuable as we navigate through dynamic times and work to achieve our mission. We thank all of you for your steadfast confidence in Entergy. With your continued support, we look forward to executing our strategy and delivering strong performance in 2014 clear and simple. Leo Denault Chairman of the Board and Chief Executive Officer March 18, 2014

6 Forward-Looking Information and Regulation G In this report and from time to time, Entergy Corporation makes statements as a registrant concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such statements are forward-looking could, project, believe, anticipate, intend, expect, estimate, continue, potential, plan, predict, forecast, and other similar words or expressions are intended to identify forward-looking statements but are not the only means to identify these statements. Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct. Any forward-looking statement is based on information current as of the date of this report and speaks only as of the date on which such statement is made. 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 involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed or incorporated by reference in Item 1A. Risk Factors contained in the Form 10-K for the year ended Dec. 31, 2013, (b) those factors discussed or incorporated by reference in Management s Financial Discussion and Analysis, and (c) negotiations, including various performance-based rate discussions, Entergy s utility supply plan, and recovery of fuel and purchased power costs; System Agreement, which occurred in December 2013, the termination of Entergy Mississippi s participation in the System Agreement in November 2015, the termination of Entergy Texas, Entergy Gulf States Louisiana s, and Entergy Louisiana s participation in the System Agreement after expiration of the recently proposed 60-month notice period or such other period as approved by the FERC; associated with the Utility operating companies move to the MISO RTO, which occurred in December 2013; end of retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, and the application of more stringent transmission reliability requirements or market power criteria by the FERC; nuclear materials and fuel, including with respect to the planned or potential shutdown of nuclear generating Commodities business, and the effects of new or existing safety or environmental concerns regarding nuclear power plants and nuclear fuel; regulatory proceedings and litigation, for license renewals Entergy s generation resources, including the capacity factors at its nuclear generating facilities; regarding future prices of electricity, natural gas, and other energy-related commodities; generating facilities and the ability to hedge, meet credit support requirements for hedges, sell power forward or otherwise reduce the market price risk associated with Commodities nuclear plants; purchase for its Utility customers, and Entergy s ability to meet credit support requirements for fuel and power supply contracts; gas, uranium, and other energy-related commodities; legislation or legislation subjecting energy derivatives used in hedging and risk management transactions to governmental regulation;

7 requirements for reduced emissions of sulfur, nitrogen, carbon, greenhouse gases, mercury, and other regulated air and water emissions, and changes in costs of compliance with environmental and other laws and regulations; permanent sites for spent nuclear fuel and nuclear waste storage and disposal; other storms and disasters, including uncertainties associated with efforts to remediate the effects of hurricanes, ice storms, or other weather events and the recovery of costs associated with restoration, including accessing funded storm reserves, and insurance; the related regulation of water use and diversion; and maintenance costs; prices and on other attractive terms; in Entergy s Utility service area and the Northeast United those areas; existing debt, execute share repurchase programs, and fund investments and acquisitions; debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies ratings criteria; proceedings; developing, or alternative sources of generation; attacks or data security breaches, including increased security costs, and war or a catastrophic event such as a nuclear accident or a natural gas pipeline explosion; and directors; in the timing of or cost to decommission nuclear plant sites; the end of 2014 and the related decommissioning of Vermont Yankee; procedures and the ability and willingness of its commitments; divestiture plans, regulatory or other limitations imposed as a result of merger, acquisition, or divestiture, and the success of the business following a merger, acquisition, or divestiture. Regulation G operational earnings per share. The reconciliation of this measure to the most directly comparable GAAP measure is below. GAAP TO NON-GAAP RECONCILIATION Earnings Per Share Transmission business Vermont Yankee asset impairments /

8 Five-Year Summary Of Selected Financial And Operating Data Selected Financial Data: (In Thousands, Except Percentages and Per Share Amounts) Operating revenues $ 11,390,947 $ 10,302,079 $ 11,229,073 $ 11,487,577 $ 10,745,650 Income from continuing operations $ 730,572 $ 868,363 $ 1,367,372 $ 1,270,305 $ 1,251,050 Earnings per share from continuing operations: Basic $ 3.99 $ 4.77 $ 7.59 $ 6.72 $ 6.39 Diluted $ 3.99 $ 4.76 $ 7.55 $ 6.66 $ 6.30 Dividends declared per share $ 3.32 $ 3.32 $ 3.32 $ 3.24 $ 3.00 Return on common equity 7.56% 9.33% 15.43% 14.61% 14.85% Book value per share, year-end $ $ $ $ $ Total assets $ 43,406,446 $ 43,202,502 $ 40,701,699 $ 38,685,276 $ 37,561,953 Long-term obligations (a) $ 12,382,127 $ 12,141,370 $ 10,268,645 $ 11,575,973 $ 11,277,314 Utility Electric Operating Revenues: (In Millions) Residential $ 3,396 $ 3,022 $ 3,369 $ 3,375 $ 2,999 Commercial 2,415 2,174 2,333 2,317 2,184 Industrial 2,405 2,034 2,307 2,207 1,997 Governmental Total retail 8,434 7,428 8,214 8,111 7,384 Sales for resale Other Total $ 8,942 $ 7,871 $ 8,674 $ 8,741 $ 7,880 Utility Billed Electric Energy Sales: (GWh) Residential 35,169 34,664 36,684 37,465 33,626 Commercial 28,547 28,724 28,720 28,831 27,476 Industrial 41,653 41,181 40,810 38,751 35,638 Governmental 2,412 2,435 2,474 2,463 2,408 Total retail 107, , , ,510 99,148 Sales for resale 3,020 3,200 4,111 4,372 4,862 Total 110, , , , ,010 Entergy Wholesale Commodities: Operating revenues (in millions) $ 2,313 $ 2,326 $ 2,414 $ 2,566 $ 2,711 Billed electric energy sales (GWh) 45,127 46,178 43,497 42,934 43,743 (a) Includes long-term debt (excluding currently maturing debt), noncurrent capital lease obligations and subsidiary preferred stock without sinking fund that is not presented as equity on the balance sheet. Comparison Of Five-Year Cumulative Return (a) The following graph compares the performance of the common stock of Entergy Corporation to the S&P 500 Index and the Philadelphia Utility Index COMPARISON OF FIVE-YEAR CUMULATIVE RETURN (a) $250 $200 $150 $100 $ Entergy Corporation S&P 500 Index Philadelphia Utility Index Entergy Corporation $ $ $ $ $ $ S&P 500 Index $ $ $ $ $ $ Philadelphia Utility Index $ $ $ $ $ $ (a) Assumes $100 invested at the closing price on Dec. 31, 2008, in Entergy Corporation common stock, the S&P 500 Index, and the Philadelphia Utility Index, and reinvestment of all dividends.

9 DEFINITIONS Entergy Corporation and Subsidiaries Certain abbreviations or acronyms used in the text and notes are defined below: Abbreviation or Acronym Term AFUDC Allowance for Funds Used During Construction ALJ Administrative Law Judge ANO 1 and 2 Units 1 and 2 of Arkansas Nuclear One (nuclear), owned by Entergy Arkansas APSC Arkansas Public Service Commission ASLB Atomic Safety and Licensing Board, the board within the NRC that conducts hearings and performs other regulatory functions that the NRC authorizes ASU Accounting Standards Update issued by the FASB Board Board of Directors of Entergy Corporation Cajun Cajun Electric Power Cooperative, Inc. capacity factor Actual plant output divided by maximum potential plant output for the period City Council or Council Council of the City of New Orleans, Louisiana DOE United States Department of Energy D. C. Circuit U.S. Court of Appeals for the District of Columbia Circuit Entergy Entergy Corporation and its direct and indirect subsidiaries Entergy Corporation Entergy Corporation, a Delaware corporation Entergy Gulf States, Inc. Predecessor company for financial reporting purposes to Entergy Gulf States Louisiana that included the assets and business operations of both Entergy Gulf States Louisiana and Entergy Texas Entergy Gulf States Louisiana Entergy Texas Entergy Wholesale Commodities (EWC) EPA ERCOT FASB FERC FitzPatrick FTR Grand Gulf Entergy Gulf States Louisiana, L.L.C., a company formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. and the successor company to Entergy Gulf States, Inc. for financial reporting purposes. The term is also used to refer to the Louisiana jurisdictional business of Entergy Gulf States, Inc., as the context requires. Entergy Texas, Inc., a company formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. The term is also used to refer to the Texas jurisdictional business of Entergy Gulf States, Inc., as the context requires. Entergy s non-utility business segment primarily comprised of the ownership and operation of six nuclear power plants, the ownership of interests in non-nuclear power plants, and the sale of the electric power produced by those plants to wholesale customers United States Environmental Protection Agency Electric Reliability Council of Texas Financial Accounting Standards Board Federal Energy Regulatory Commission James A. FitzPatrick Nuclear Power Plant (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment Financial transmission right Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy Gigawatt-hour(s), which equals one million kilowatt-hours GWh Independence Independence Steam Electric Station (coal), owned 16% by Entergy Arkansas, 25% by Entergy Mississippi, and 7% by Entergy Power Indian Point 2 Unit 2 of Indian Point Energy Center (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment

10 DEFINITIONS (Continued) Abbreviation or Acronym Indian Point 3 IRS ISO kv kw kwh LDEQ LPSC Mcf MISO MMBtu MPSC MW MWh Nelson Unit 6 Net debt to net capital ratio Net MW in operation NRC NYPA OASIS Palisades Pilgrim PPA PRP PUCT Registrant Subsidiaries Ritchie Unit 2 River Bend RTO SEC SMEPA Term Unit 3 of Indian Point Energy Center (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment Internal Revenue Service Independent System Operator Kilovolt Kilowatt, which equals one thousand watts Kilowatt-hour(s) Louisiana Department of Environmental Quality Louisiana Public Service Commission 1,000 cubic feet of gas Midcontinent Independent System Operator, Inc., a regional transmission organization One million British Thermal Units Mississippi Public Service Commission Megawatt(s), which equals one thousand kilowatt(s) Megawatt-hour(s) Unit No. 6 (coal) of the Nelson Steam Electric Generating Station, 70% of which is co-owned by Entergy Gulf States Louisiana (57.5%) and Entergy Texas (42.5%), and 10.9% of which is owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents Installed capacity owned and operated Nuclear Regulatory Commission New York Power Authority Open Access Same Time Information Systems Palisades Power Plant (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment Pilgrim Nuclear Power Station (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment Purchased power agreement or power purchase agreement Potentially responsible party (a person or entity that may be responsible for remediation of environmental contamination) Public Utility Commission of Texas Entergy Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C., Entergy Louisiana, LLC, Entergy Mississippi, Inc., Entergy New Orleans, Inc., Entergy Texas, Inc., and System Energy Resources, Inc. Unit 2 of the R.E. Ritchie Steam Electric Generating Station (gas/oil) River Bend Station (nuclear), owned by Entergy Gulf States Louisiana Regional transmission organization Securities and Exchange Commission South Mississippi Electric Power Association, which owns a 10% interest in Grand Gulf

11 DEFINITIONS (Concluded) Entergy Corporation and Subsidiaries Abbreviation or Acronym Term System Agreement Agreement, effective January 1, 1983, as modified, among the Utility operating companies relating to the sharing of generating capacity and other power resources System Energy System Energy Resources, Inc. System Fuels System Fuels, Inc. TWh Terawatt-hour(s), which equals one billion kilowatt-hours U.K. United Kingdom of Great Britain and Northern Ireland Unit Power Sales Agreement Agreement, dated as of June 10, 1982, as amended and approved by FERC, among Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy, relating to the sale of capacity and energy from System Energy s share of Grand Gulf Utility Entergy s business segment that generates, transmits, distributes, and sells electric power, with a small amount of natural gas distribution Utility operating companies Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas Vermont Yankee Vermont Yankee Nuclear Power Station (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment Waterford 3 Unit No. 3 (nuclear) of the Waterford Steam Electric Station, 100% owned or leased by Entergy Louisiana weather-adjusted usage Electric usage excluding the effects of deviations from normal weather White Bluff White Bluff Steam Electric Generating Station, 57% owned by Entergy Arkansas

12 ENTERGY CORPORATION AND SUBSIDIARIES MANAGEMENT S FINANCIAL DISCUSSION AND ANALYSIS Entergy operates primarily through two business segments: Utility and Entergy Wholesale Commodities. The Utility business segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operates a small natural gas distribution business. The Entergy Wholesale Commodities business segment includes the ownership and operation of six nuclear power plants located in the northern United States and the sale of the electric power produced by those plants to wholesale customers. In August 2013, Entergy announced plans to close and decommission Vermont Yankee. The plant is expected to cease power production in the fourth quarter 2014 after its current fuel cycle. This business also provides services to other nuclear power plant owners. Entergy Wholesale Commodities also owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers. On December 5, 2011, Entergy announced that it would spin off its transmission business and merge it with a newly formed subsidiary of ITC Holdings Corp. (ITC). On December 13, 2013, Entergy and ITC mutually agreed to terminate the transaction following denial by the MPSC of the joint application related to the transaction. Entergy and ITC have withdrawn transaction-related filings submitted to Entergy's retail regulators and the FERC. Following are the percentages of Entergy s consolidated revenues and net income generated by its operating segments and the percentage of total assets held by them. % of Revenue % of Net Income % of Total Assets Segment Utility Entergy Wholesale Commodities Parent & Other (22) (15) (18) (4) (4) (4) See Note 13 to the financial statements for further financial information regarding Entergy's business segments.

13 Results of Operations Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis 2013 Compared to 2012 Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing 2013 to 2012 showing how much the line item increased or (decreased) in comparison to the prior period. Entergy Utility Wholesale Commodities Parent & Other Entergy (In Thousands) 2012 Consolidated Net Income (Loss) $960,322 $40,427 ($132,386) $868,363 Net revenue (operating revenue less fuel expense, purchased power, and other regulatory charges/credits) 555,233 (51,509) 7, ,860 Other operation and maintenance 184,374 90,222 11, ,542 Asset impairment and related charges 9,411 (26,188) 2,790 (13,987) Taxes other than income taxes 37,547 5, ,052 Depreciation and amortization 76,850 39,824 (215) 116,459 Gain on sale of business 43,569 43,569 Other income 6,378 29,624 2,268 38,270 Interest expense 32,688 (1,577) 3,642 34,753 Other expenses 18,271 50,274 68,545 Income taxes 316,577 (138,800) 17, , Consolidated Net Income (Loss) $846,215 $42,976 ($158,619) $730,572 Refer to SELECTED FINANCIAL DATA - FIVE-YEAR COMPARISON OF ENTERGY CORPORATION AND SUBSIDIARIES which accompanies Entergy Corporation s financial statements in this report for further information with respect to operating statistics. As discussed in more detail in Note 1 to the financial statements, results of operations include $321.5 million ($202.2 million after-tax) in 2013 and $355.5 million ($223.5 million after-tax) in 2012 of impairment and other related charges to write down the carrying value of Vermont Yankee and related assets to their fair values. Also, net income for Utility in 2012 was significantly affected by a settlement with the IRS related to the income tax treatment of the Louisiana Act 55 financing of the Hurricane Katrina and Hurricane Rita storm costs, which resulted in a reduction in income tax expense. The net income effect was partially offset by a regulatory charge, which reduced net revenue in 2012, associated with the storm costs settlement to reflect the obligation to customers with respect to the settlement. See Note 3 to the financial statements for additional discussion of the tax settlement. Also, earnings were negatively affected in 2013 by expenses, including other operation and maintenance expenses and taxes other than income taxes, of approximately $110 million ($70 million after-tax), including approximately $85 million ($55 million after-tax) for Utility and $25 million ($15 million after-tax) for Entergy Wholesale Commodities, recorded in connection with a strategic imperative intended to optimize the organization through a process known as human capital management. In December 2013, Entergy deferred for future collection approximately $45 million ($30 million after-tax) of these costs in the Arkansas and Louisiana jurisdictions at the Utility, as approved by the APSC and the LPSC, respectively. See "Human Capital Management Strategic Initiative" below for further discussion.

14 Management's Financial Discussion and Analysis Net Revenue Utility Following is an analysis of the change in net revenue comparing 2013 to Amount (In Millions) 2012 net revenue $4,969 Retail electric price 236 Louisiana Act 55 financing savings obligation 165 Grand Gulf recovery 75 Volume/weather 40 Fuel recovery 35 MISO deferral 12 Decommissioning trusts (23) Other net revenue $5,524 The retail electric price variance is primarily due to: a formula rate plan increase at Entergy Louisiana, effective January 2013, which includes an increase relating to the Waterford 3 steam generator replacement project, which was placed in service in December The net income effect of the formula rate plan increase is limited to a portion representing an allowed return on equity with the remainder offset by costs included in other operation and maintenance expenses, depreciation expenses, and taxes other than income taxes; the recovery of Hinds plant costs through the power management rider at Entergy Mississippi, as approved by the MPSC, effective with the first billing cycle of The net income effect of the Hinds plant cost recovery is limited to a portion representing an allowed return on equity on the net plant investment with the remainder offset by the Hinds plant costs in other operation and maintenance expenses, depreciation expenses, and taxes other than income taxes; an increase in the capacity acquisition rider at Entergy Arkansas, as approved by the APSC, effective with the first billing cycle of December 2012, relating to the Hot Spring plant acquisition. The net income effect of the Hot Spring plant cost recovery is limited to a portion representing an allowed return on equity on the net plant investment with the remainder offset by the Hot Spring plant costs in other operation and maintenance expenses, depreciation expenses, and taxes other than income taxes; increases in the energy efficiency rider, as approved by the APSC, effective July 2013 and July Energy efficiency revenues are offset by costs included in other operation and maintenance expenses and have no effect on net income; an annual base rate increase at Entergy Texas, effective July 2012, as a result of the PUCT s order that was issued in September 2012 in the November 2011 rate case; and a formula rate plan increase at Entergy Mississippi, effective September See Note 2 to the financial statements for a discussion of rate proceedings. The Louisiana Act 55 financing savings obligation variance results from a regulatory charge recorded in the second quarter 2012 because Entergy Gulf States Louisiana and Entergy Louisiana agreed to share with customers the savings from an IRS settlement related to the uncertain tax position regarding the Hurricane Katrina and Hurricane Rita Louisiana Act 55 financing. See Note 3 to the financial statements for additional discussion of the tax settlement.

15 The Grand Gulf recovery variance is primarily due to increased recovery of higher costs resulting from the Grand Gulf uprate. The volume/weather variance is primarily due to the effects of more favorable weather on residential sales and an increase in industrial sales primarily due to growth in the refining segment. The fuel recovery variance is primarily due to: the deferral of increased capacity costs that will be recovered through fuel adjustment clauses; the expiration of the Evangeline gas contract on January 1, 2013; and an adjustment to deferred fuel costs recorded in the third quarter 2012 in accordance with a rate order from the PUCT issued in September See Note 2 to the financial statements for further discussion of this PUCT order issued in Entergy Texas's 2011 rate case. The MISO deferral variance is primarily due to the deferral in April 2013, as approved by the APSC, of costs incurred since March 2010 related to the transition and implementation of joining the MISO RTO. The decommissioning trusts variance is primarily due to lower regulatory credits resulting from higher realized income on decommissioning trust fund investments. There is no effect on net income as the credits are offset by interest and investment income. Entergy Wholesale Commodities Following is an analysis of the change in net revenue comparing 2013 to Amount (In Millions) 2012 net revenue $1,854 Mark-to-market (58) Nuclear volume (24) Nuclear fuel expenses (20) Nuclear realized price changes 58 Other (8) 2013 net revenue $1,802 Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis As shown in the table above, net revenue for Entergy Wholesale Commodities decreased by approximately $52 million in 2013 primarily due to: the effect of rising forward power prices on electricity derivative instruments that are not designated as hedges, including additional financial power sales conducted in the fourth quarter 2013 to offset the planned exercise of in-the-money protective call options and to lock in margins. These additional sales did not qualify for hedge accounting treatment, and increases in forward prices after those sales were made accounted for the majority of the negative mark-to-market variance. It is expected that the underlying transactions will result in earnings in first quarter 2014 as these positions settle. See Note 16 to the financial statements for discussion of derivative instruments; the decrease in net revenue compared to prior year resulting from the exercise of resupply options provided for in purchase power agreements where Entergy Wholesale Commodities may elect to supply power from another source when the plant is not running. Amounts related to the exercise of resupply options are included in the GWh billed in the table below; and

16 Management's Financial Discussion and Analysis higher nuclear fuel expenses primarily resulting from the effect of the write-down in March 2012 of the carrying value of Vermont Yankee's nuclear fuel, which resulted in a lower level of nuclear fuel amortization in 2012, and the subsequent purchase of additional nuclear fuel in early These decreases were partially offset by higher capacity prices. Following are key performance measures for Entergy Wholesale Commodities for 2013 and Owned capacity (MW) (a) 6,068 6,612 GWh billed 45,127 46,178 Average realized price per MWh $50.86 $50.02 Entergy Wholesale Commodities Nuclear Fleet Capacity factor 89% 89% GWh billed 40,167 41,042 Average realized revenue per MWh $50.15 $50.29 Refueling Outage Days: FitzPatrick 34 Indian Point 2 28 Indian Point 3 28 Palisades 34 Pilgrim 45 Vermont Yankee 27 (a) The reduction in owned capacity is due to the retirement of the 544 MW Ritchie Unit 2 in November Realized Revenue per MWh for Entergy Wholesale Commodities Nuclear Plants The effects of sustained low natural gas prices and power market structure challenges have resulted in lower market prices for electricity in the New York and New England power regions, which is where five of the six Entergy Wholesale Commodities nuclear power plants are located. Entergy Wholesale Commodities s nuclear business experienced a decrease in realized price per MWh to $50.15 in 2013 from $50.29 in 2012 and $54.73 in The annual realized price per MWh for Entergy Wholesale Commodities reached a peak of $61.07 in As shown in the contracted sale of energy table in Market and Credit Risk Sensitive Instruments, Entergy Wholesale Commodities has sold forward 74% of its planned nuclear energy output for 2014 for an expected average contracted energy price of $50 per MWh based on market prices at December 31, In addition, Entergy Wholesale Commodities has sold forward 74% of its planned nuclear energy output for 2015 for an expected average contracted energy price of $49 per MWh based on market prices at December 31, These price trends present a challenging economic situation for the Entergy Wholesale Commodities plants. The challenge is greater for some of these plants based on a variety of factors such as their market for both energy and capacity, their size, their contracted positions, and the investment required to maintain the safety and integrity of the plants. If, in the future, economic conditions or regulatory activity no longer support the continued operation of a plant it could adversely affect Entergy s results of operations through loss of revenue, impairment charges, increased depreciation rates, transitional costs, or accelerated decommissioning costs. On August 27, 2013, Entergy announced its plan to close and decommission Vermont Yankee. Vermont Yankee is expected to cease power production in the fourth quarter 2014 after its current fuel cycle. This decision was approved by the Board in August The decision to shut down the plant was primarily due to sustained low natural gas and

17 wholesale energy prices, the high cost structure of the plant, and lack of a market structure that adequately compensates merchant nuclear plants for their environmental and fuel diversity benefits in the region in which the plant operates. See Note 1 to the financial statements for discussion of impairment of long-lived assets. Impairment of long-lived assets and nuclear decommissioning costs, and the factors that influence these items, are both discussed below in Critical Accounting Estimates. See also the discussion below in Entergy Wholesale Commodities Authorizations to Operate Its Nuclear Power Plants regarding Entergy Wholesale Commodities nuclear plant operating license and related activity. Other Income Statement Items Utility Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis Other operation and maintenance expenses increased from $2,080 million for 2012 to $2,264 million for 2013 primarily due to: an increase of $83 million in compensation and benefits costs primarily due to a decrease in the discount rates used to determine net periodic pension and other postretirement benefit costs and a settlement charge, recognized in September 2013, related to the payment of lump sum benefits out of the non-qualified pension plan. See "Critical Accounting Estimates" below and Note 11 to the financial statements for further discussion of benefits costs; an increase of $46 million in fossil-fueled generation expenses primarily due to the acquisitions of the Hot Spring plant by Entergy Arkansas and the Hinds plant by Entergy Mississippi in November Costs related to the Hot Spring and Hinds plants are recovered through the capacity acquisition rider and power management rider, respectively, as previously discussed. Also contributing to the increases is an overall higher scope of work done during plant outages as compared to the prior year; an increase of $72 million resulting from implementation costs, severance costs, and curtailment and special termination benefits in 2013 related to the human capital management strategic imperative, partially offset by the deferral of approximately $44 million of these costs. See the "Human Capital Management Strategic Imperative" below for further discussion; an increase of $16 million in energy efficiency costs at Entergy Arkansas. These costs are recovered through an energy efficiency rider and have no effect on net income; an increase of $13 million in nuclear expenses, primarily due to higher labor costs, including higher contract labor; the deferral in 2012, as approved by the LPSC and the FERC, of costs related to the transition and implementation of joining the MISO RTO, which reduced 2012 expenses by $10 million; and an increase of $9 million resulting from costs related to the generator stator incident at ANO, including an offset for expected insurance proceeds. See ANO Damage and Outage below for further discussion of the incident. Also, other operation and maintenance expenses include $36 million in 2013 and $38 million in 2012 of costs incurred related to the now terminated plan to spin off and merge the Utility's transmission business. Taxes other than income taxes increased primarily due to an increase in ad valorem taxes, primarily due to the Hot Spring and Hinds plant acquisitions in 2012, as well as an increase in local franchise taxes resulting from higher residential and commercial revenues as compared with prior year. Depreciation and amortization expenses increased primarily due to additions to plant in service, including the Hot Spring and Hinds plant acquisitions in 2012 and the completion of the Waterford 3 steam generator replacement project and the Grand Gulf uprate project in Also contributing to the increase is an increase in depreciation rates as a result of the 2011 rate case order issued by the PUCT in September 2012.

18 Management's Financial Discussion and Analysis Interest expense increased primarily due to net debt issuances in 2013 of $520 million by the Utility operating companies and System Energy and lower AFUDC due to the completion of several major projects in See Note 5 to the financial statements for more details of long-term debt. Entergy Wholesale Commodities Other operation and maintenance expenses increased from $958 million for 2012 to $1,048 million for 2013 primarily due to: an increase of $43 million in compensation and benefits costs primarily due to a decrease in the discount rates used to determine net periodic pension and other postretirement benefit costs and a settlement charge, recognized in September 2013, related to the payment of lump sum benefits out of the non-qualified pension plan. See "Critical Accounting Estimates" below and Note 11 to the financial statements for further discussion of benefits costs; an increase of $23 million primarily due to the effect of the final court decisions in the Vermont Yankee and Indian Point 2 lawsuits against the U.S. Department of Energy related to spent nuclear fuel disposal recorded in The damages awarded included the reimbursement of approximately $25 million of spent nuclear fuel storage costs previously recorded as operation and maintenance expenses; an increase of $16 million resulting from implementation and severance costs in 2013 related to the human capital management strategic imperative. See "Human Capital Management Strategic Imperative" below for further discussion; and approximately $15 million in commitments recorded in connection with the settlement agreement with parties in Vermont regarding the operation and decommissioning of Vermont Yankee. See "Impairment of Long-Lived Assets" in Note 1 to the financial statements for further discussion of the settlement agreement. The asset impairment variance is primarily due to $321.5 million ($202.2 million after-tax) in 2013 and $355.5 million ($223.5 million after-tax) in 2012 of impairment and other related charges primarily to write down the carrying value of Vermont Yankee and related assets to their fair values. See Note 1 to the financial statements for further discussion of these charges. Depreciation and amortization expenses increased primarily due to an adjustment in 2012 resulting from final court decisions in the Indian Point 2 and Vermont Yankee lawsuits against the U.S. Department of Energy related to spent nuclear fuel disposal. The effects of recording the proceeds from the judgment reduced the plant in service balances and included a $25 million reduction to previously-recorded depreciation expense. The gain on sale of business resulted from the sale in November 2013 of Entergy Solutions District Energy, a business wholly-owned by Entergy in the Entergy Wholesale Commodities segment that owns and operates district energy assets serving the business districts in Houston and New Orleans. Entergy sold Entergy Solutions District Energy for $140 million and realized a pre-tax gain of $44 million on the sale. Other income increased primarily due to realized decommissioning trust gains that resulted from portfolio reallocations for Indian Point 2 and Palisades. Other expenses increased primarily due to a credit to decommissioning expense of $49 million in the second quarter 2012 resulting from a reduction in the decommissioning cost liability for a plant as a result of a revised decommissioning cost study. See Critical Accounting Estimates - Nuclear Decommissioning Costs for further discussion of nuclear decommissioning costs. Parent & Other Other operation and maintenance expenses increased primarily due to the elimination of intersegment activity.