Entergy Corporation: Quarterly Handout

Tickers: ETR
Quarterly Handout

( u p d a t e d M a y 1 4 , 2 0 1 9 )

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C r e a t i n g s u s t a i n a b l e v a l u e

1

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 1995. Such forward-looking statements include, among other things, Entergy's 2019 earnings guidance, its current financial and operational outlook, and other statements of Entergy's plans, beliefs or expectations included in this presentation. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. Except to the extent required by the federal securities laws, Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including (a) those factors discussed elsewhere in this presentation and in Entergy's most recent Annual Report on Form 10-K, any subsequent Quarterly Reports on Form 10-Q and Entergy's other reports and filings made under the Securities Exchange Act of 1934; (b) uncertainties associated with (1) rate proceedings, formula rate plans and other cost recovery mechanisms, including the risk that costs may not be recoverable to the extent anticipated by the utilities and (2) implementation of the ratemaking effects of changes in law; (c) uncertainties associated with efforts to remediate the effects of major storms and recover related restoration costs; (d) risks associated with operating nuclear facilities, including plant relicensing, operating and regulatory costs and risks; (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; (i) the effects of technological changes and changes in commodity markets, capital markets or economic conditions; and (j) impacts from a terrorist attack, cybersecurity threats, data security breaches or other attempts to disrupt Entergy's business or operations, and other catastrophic events.

This presentation includes the non-GAAP financial measures of adjusted ROE; parent debt to total debt, excluding securitization debt; FFO to debt, excluding securitization debt; and FFO to debt, excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC 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 www.entergy.comand which contains further information on non-GAAP financial measures.

2

We Power Life

Customers

Employees

Communities

Owners

Deliver

Earn top-quartile

Achieve

Deliver

top-quartile

organizational

top-decile

top-quartile

customer

health score

corporate social

returns

experience

and everyone

responsibility

safe, all day,

performance

every day

3

Our financial objective

Steady, predictable

growth…

…while managing risk

Customer-centric capital plan

Earnings growth

Dividend growth

Progressive regulatory

constructs

Disciplined project

management

Orderly exit of EWC

4

Strategic execution over the past few years

EWC wind-down

Decisions to close or sell merchant nuclear plants

Sales of FitzPatrick and VY

Agreements to sell Pilgrim, Palisades and Indian Point

Revenue price risk reduction

Focus on nuclear operations

Employee support

Investing in the Utility

$15B capital investment over the last five years

Major generation projects under construction

Transmission expansion

Joined MISO Dec. 2013

MTEP 16, 17 and 18 approved

AMI deployment under way

Constructive regulation

Arkansas legislation /E-AR forward test year

FRP

E-LAFRP improvements

E-LAbusiness combination

E-MSFRP with forward- looking features

E-TXDCRF and TCRF

System Agreement termination

5

2019 key deliverables

Executing on our strategy

1Q

2Q

3Q

4Q

E-AR renewable RFP

St. Charles Power

E-MS Choctaw

issuance

Station in service

decision1

E-TX renewable RFP

E-LA annual FRP

E-MS Sunflower

issuance (added 1Q)

filing

Solar Project decision

E-MS annual FRP

E-MS FRP decision

(now expected 4Q)

filing

Western Region

E-AR annual FRP

filing

Pilgrim return to

Phase 1 economic

Column 1 in the NRC

transmission project

E-NO rate case

regulatory oversight

completion

decision

program

Indian Point Unit 3

E-LA FRP rates

final refueling outage

effective

Pilgrim shutdown

Agreement to sell

Indian Point post-

shutdown (added 1Q)

1 million advanced meters installed

E-MSChoctaw acquisition1

Southwest Louisiana Improvement Project completion (transmission)

E-ARFRP decision

SERI ROE decision (FERC)

MTEP 19 approval

Pilgrim sale

Annual dividend review

Note: Estimated timing as of February 2019; regulatory activity or other factors could lead to changes

1Due diligence has identified a potential mechanical issue that may have to be addressed prior to closing; there is a possibility that closing may be delayed to allow time to resolve the issue

6

A clear and robust Utility 2019E-2021E capital plan

~85% ready for execution from a regulatory approval standpoint

Power generation-$2.9B

Nuclear-$1.6B

$11.7B

Transmission-$2.5B

Distribution and utility support-$4.7B

2019E-2021E capital plan as of February 2019; does not reflect potential developments and/or updates since February 2019

7

Generation capital plan

Generation capital plan; cumulative $B

4.5

3.0

1.9

19E

20E

21E

Nuclear

Non-nuclear baseline New generation

Renewables

2019E-2021E capital plan as of February 2019; does not reflect potential developments and/or updates since February 2019

8

Transmission capital plan

Transmission capital plan; cumulative $B

2.5

1.9

1.1

19E

20E

21E

Asset management

Reliability and growth

Economic

2019E-2021E capital plan as of February 2019; does not reflect potential developments and/or updates since February 2019

9

Distribution and utility support capital plan

Distribution and utility support capital plan; cumulative $B

4.7

3.1

1.5

19E

20E

21E

Distribution baseline

Utility support

Grid modernization

2019E-2021E capital plan as of February 2019; does not reflect potential developments and/or updates since February 2019

10

Grid modernization

Next few years, primarily AMI

Highlights of AMI

Latest generation meters

One of the fastest networks

Enhanced information

Tools for tailored customer solutions

Improved operational efficiency

Faster outage identification

11

Low customer rates

Goal to maintain rate advantage

2017 average retail price by parent company; ₵ per kWh

ETR 7.58

Source: S&P Global Market Intelligence Regulated Retail Price of Electricity published 7/19/18

Managing customer bills

Illustrative

Average monthly residential bill; $

<2%

CAGR

Non- fuel

Fuel

18

19E

20E

21E

ETR bill outlook

Without return of unprotected excess ADIT

12

Levers to help control bills

Fuel efficiency

Operational savings

Energy efficiency

Industrial growth

Securitizations rolling off

New products and services

As of April 2019

13

Progressive cost recovery mechanisms

~90% of capital plan recovered through timely mechanisms

Capital plan recovery by mechanism

Illustrative

Rate Rate case cases

Traditional

FRPs

Riders

Forward-looking

FRPs

Chart reflects 2019E-2021E capital investment as of February 2019, not rate base; capital projects will be reflected in rate base when they are closed to plant; for multi-year projects there will be a timing difference

14

Investment plan benefits our stakeholders

Enhanced reliability and resiliency

Catalyst for our region's economic development

Reduced environmental footprint at the Utility

Maintain reasonable rates

Good-paying jobs/ Workforce development

Production cost savings

Greater customer control and options over energy usage

Enablers of tomorrow's

customer solutions

15

Finishing strong at EWC

FitzPatrick Vermont Yankee

Pilgrim

Indian Point

Palisades

Sold (2017)

Sold (2019)

Planned

Planned

Planned

shutdown

shutdown

shutdown

(2019)

(2020 / 2021)

(2022)

Agreement

Agreement

Agreement

to sell

to sell

to sell

(targeted close

(targeted close

(targeted close

in 2019)

in 2021)

in 2022)

16

EWC risk reduction efforts

Revenue price risk reduction

Operational focus

93% reduction

Jan 17

Mar 19

Employee support

Decommissioning

Agreements to

sell Pilgrim,

Palisades and

Indian Point

17

Credit and cash profile

Parent debt to total debt1; %

FFO to debt1; %

15.0% excluding

Target

Target

certain items2

15%

21.7

<25%

11.1

1Q19

19E-22E

1Q19

20E-22E

Credit ratings3(outlook)

E-AR

E-LA

E-MS

E-NO

E-TX

SERI

ETR

S&P

A

A

A

A

A

A

BBB+

(stable)

(stable)

(stable)

(stable)

(stable)

(stable)

(stable)

Moody's

A2

A2

A2

Baa2

Baa1

Baa1

Baa2

(stable)

(stable)

(stable)

(stable)

(stable)

(stable)

(stable)

As of first quarter 2019 teleconference

1LTM, excluding securitization debt; see appendix for Regulation G reconciliation

2Excluding securitization debt, return of unprotected excess ADIT, and severance and retention payments associated with exit of EWC; see appendix for Regulation G reconciliation

3Senior secured ratings for the OpCos and SERI; corporate credit rating for Entergy

18

Meeting environmental objectives

Positioned to operate in a carbon-constrained economy

Environment2020: Voluntary pledge to reduce CO2emissions 20% below year 2000 levels through 2020

Since 2000, 23% reduction in absolute CO2emissions and 28% reduction in CO2emission rates1

New goal to reduce CO2emission rate to 50% below year 2000 levels by 20301

Adopted EEI ESG template

Official supporter of the Task Force onClimate-Related Financial Disclosures

PublishedClimate Scenario Analysis and Evaluation of Risks and Opportunities report

1Utility only

19

Supporting environmental stewardship

One of the cleanest large generating fleets in the U.S.

Renewables and distributed energy resources

~1,000 MW of renewables in various stages of development

Portfolio transformation

New technologies Cleaner, more efficient gas plants

Investment in nuclear fleet

Virtually emissions-free ~35% of Utility generation in 2018

20

Evolving customer expectations

Outcomes

Save

New

Green

Ease

not

money

technology

of use

inputs

21

Shifting from supplier to partner

From supplier

To partner

22

Delivering tailored customer solutions

Technology advances make it possible

23

Thinking of each customer as a segment of one

A different mindset to deliver value

Industrial

A segment of

Commercial

ONE

Residential

24

Strategic investments to further our journey

Building an integrated energy network

Grid infrastructure

Enabling

Distributed

replacements / upgrades

technologies

resources

Generation

Transmission

Distribution

Customer

25

Uniquely positioned to seize growth opportunities

Track record

Efficient

of successful

regulatory

execution

frameworks

Efficient vertical

Low rates

integration

Environmental

Prepared for

and social

change

responsibility

Economic

Clean

generation

development

26

Appendix

27

Utility overview

2018 electric retail sales1; %

2Governmental

E-AR

E-LA

Industrial

Electric utility

• Electric and gas utility

Residential

711,000 customers

Number of customers

41

32

Authorized ROE range:

- Electric 1,084,000

- Gas 93,000

9.25%-10.25%

• Forward test year FRP

Authorized ROE ranges:

- Electric 9.95% (2017

25

test year); 9.2%-10.4%

Commercial

(20182019 test years)

- Gas 9.45%-10.45%

• Electric FRP, gas RSP

2018 generation portfolio2; %

E-MS

E-NO

E-TX

CT/CCGT/

Coal

hydro/solar

Electric utility

Electric and gas utility

Electric utility

Nuclear

10

450,000 customers

Number of customers

454,000 customers

31

24

Authorized ROE range:

- Electric 202,000

Authorized ROE: 9.65%

- Gas 107,000

9.28%-11.36%

Rate case

Authorized ROE ranges:

• FRP with forward-looking

- Electric 10.7%-11.5%

features

35

- Gas 10.25%-11.25%

Legacy gas/

Rate case

oil

Note: Customer counts at the end of period 12/31/18

1Percent of 2018weather-adjusted GWh electric retail sales

2Percent of owned and leased MW capability for generation portfolio as of 12/31/18

28

Entergy Arkansas

E-AR (currently in rates)

Metric

Detail

Authorized ROE

9.25%-10.25%

Rate base

$7.547B retail rate base (2019 test year)

WACC (after-tax)

5.25%

Equity ratio

36.55% (46.38% excl. $1.7B ADIT at 0%

cost rate)

Regulatory

Forward test year FRP (2017-2021 annual

construct

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

Base rate change

$67M increase effective 1/2/19

Riders

MISO, capacity costs, Grand Gulf, tax

adjustment, energy efficiency, fuel and

purchased power

29

Entergy Louisiana

E-LA (currently in rates)

Metric

Detail - electric1

Detail - gas2

Authorized ROE

9.95%3

9.45%-10.45%

Last filed rate base

$9.646B excl. $520M

$0.070B, filed on

transmission plant

1/31/19 (9/30/18 test

through 8/31/18, included

year)

in the transmission rider

(12/31/17 test year)

WACC

7.23% (after-tax)

7.04% (after-tax)

Equity ratio

49.11%

48.26%

Regulatory

FRP, 2017-2019 test

RSP4

construct

years; 60/40

customer/company

sharing outside

bandwidth

Base rate change

Total change from cost of

$3M6

service $60M5

Riders/specific

Capacity, MISO,

Gas infrastructure

recovery

transmission, fuel

1Pending finalization of the 2017 test year filing (docketU-34951)

2Pending implementation of rates in May 2019 for test year 2018 filing (docketU-35118)

32018 and 2019 test years will have an authorized ROE range of9.2%-10.4% (9.8% midpoint)

450 bps dead band, 51bps-200 bps 50% sharing, >200 bps adjust to 200 bps plus 75 bps sharing; for infrastructure costs, 100% sharing above the band

5Does not include MISO/capacity/other or tax reform adjustment mechanism (amount varies over time)

6Includes removal of test year 2017 extraordinary item $(0.7M) forover-collected income taxes and unprotected excess ADIT, partially offset by storm flood restoration costs

30

Entergy Mississippi

E-MS (currently in rates)

Metric

Detail

Authorized ROE

10.32% performance-adjusted midpoint

(9.69% + 0.63% performance factor);

9.28%-11.36% range (annual

redetermination based on formula)

Rate base

$2.413B (2018 forward test year)

WACC (after-tax)

7.13%

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

base rate case)

Base rate change

None requested in 2018 FRP filing

Riders1

Power management rider, Grand Gulf, fuel,

MISO, unit power cost, storm damage,

energy efficiency, ad valorem tax

adjustment, grid modernization,

restructuring credit

1E-MSis seeking a new rider for the cost of Choctaw Generating Station and other new owned capacity

31

Entergy Mississippi

Annual FRP filing

Annual FRP - (docket 2014-UN-132)

Highlights

Category

2019 test year1

2018 lookback

Allowed ROE midpoint, incl. performance factor

10.35%

10.32%

Allowed ROE range

9.35%-11.37%

9.28%-11.36%

Earned ROE

7.67%

11.68%

Rate base

$2.647B

$2.360B

WACC (after-tax)

7.25%

7.13%

Equity ratio

49.67%

48.05%

Includes depreciation rate change

$15M

-

Rate request

$37M rate change

$(10M) refund

Key dates

Date

Event

2Q19

Expected decision

1Includes, among other items, pro forma adjustments to reflect known and measurable changes including but not limited to plant in service, accumulated depreciation, ADIT, O&M expenses, and payroll expenses

32

Entergy New Orleans

E-NO (currently in rates)

Metric

Detail - electric

Detail - gas

Authorized ROE

10.7%-11.5%

10.25%-11.25%

Rate base

$0.299B (12/31/11

$0.089B

(filed on 5/31/12)1

test year) - does not

(12/31/11 test

include $0.228B for

year)

Union (first year

average rate base)

WACC (after-tax)

8.58%

8.40%

Equity ratio

50.08%

50.08%

Regulatory construct

Rate case

Rate case

Riders/specific recovery

Fuel, capacity (e.g.,

Purchased gas

Ninemile 6, Union)

1Rate base does not include Algiers assets transferred toE-NO from E-LA on 9/1/15; net book value of the assets at the time of the transfer was ~$85M

33

Entergy New Orleans

Base rate case filing

Base rate case - (docket UD-18-07)

Highlights

ROE: earned 8.73%, requested 10.50% (electric), 10.75% (gas)

Rate base: $0.889B (12/31/18 test year with known and measurable plant closings through 12/31/19)

WACC(after-tax): 7.79% (electric), 7.92% (gas)

Equity ratio: 52.20%

21% federal tax rate incorporated as a known and measurable change

Requested mechanisms:

Electric and gas FRPs(2019-2021 test years), electric with ±25 bps reliability performance adjustment

Riders for gas infrastructure, grid modernization, incremental capacity and LTSA

Also includes community solar, green pricing options and other new customer offerings

Major drivers of proposed rate change

Category

$M

AMI

8

Rate base

8

Depreciation expense

7

Other O&M

(3)

Income tax expense

(5)

Other revenue changes

(4)

Base rate change (net of

10

realignment from riders)

2019 fuel rates and other riders

(31)

Net rate change

(20)

Key dates

Date

Event

Date

Event

5/24/19

Rejoinder testimony

7/24/19

Reply briefs

6/17-21/19

Hearing

Aug. 2019

Rate effective date

7/12/19

Initial briefs

Calculations may differ due to rounding

34

Entergy Texas

E-TX (currently in rates)

Metric

Detail

Authorized ROE

9.65%

Rate base

$2.446B (12/31/17 test year)

WACC (after-tax)

7.73%

Equity ratio

50.90%

Regulatory construct

Rate case

Base rate change

$53M increase1

Riders

Fuel, capacity, DCRF, TCRF, rate case

expenses, AMI surcharge, Limited-Term

Tax Cuts and Jobs Act, Federal Income

Tax, among others

1Does not include $(122M) from tax riders (first year rate impact)

35

System Energy Resources, Inc.

Grand Gulf

Nuclear Station

SERI - generation company

Metric

Detail

Principal asset

An ownership and leasehold

interest in Grand Gulf

Authorized ROE

10.94%1

Last calculated rate base

$1.418B (3/31/19)

WACC (after-tax)

8.89%

Equity ratio

65.00%2

Regulatory construct

Monthly cost of service

Energy and capacity allocation3; %

E-NO

17

E-AR

36

E-MS

33

14

E-LA

1Ongoing proceeding at FERC challenging SERI's authorized ROE (see slide 36)

2For SERI ratemaking, the sale leaseback obligation is excluded from the capital structure and instead is treated as an operating lease and recovered as an O&M cost

3Reflects percentages under SERI's Unit Power Sales Agreement

36

System Energy Resources, Inc.

FERC proceedings (page 1 of 2)

ROE complaints (dockets EL17-41,EL18-142)

APSC, MPSC, and LPSC filed ROE complaints at FERC; FERC consolidated complaints into one proceeding

Parties were unable to settle the ROE issue, so FERC established hearing procedures

ALJ established procedural schedule

Key dates (consolidated dockets)

Date

Event

Date

Event

6/14/19

Respondent testimony

11/4/19

Initial briefs

7/30/19

Rebuttal testimony by Complainants

12/20/19

Reply briefs

9/16-20/19

Hearing

2/18/20

Initial decision

LPSC complaint regarding SERI equity component (docket EL18-204)

In the LPSC's ROE complaint, the LPSC alleged that SERI's equity component was unjust and unreasonable

FERC initially dismissed LPSC request for cap on equity component, but after LPSC appeal, FERC set the complaint for hearing and settlement

Settlement discussions are ongoing

37

System Energy Resources, Inc.

FERC proceedings (page 2 of 2)

LPSC complaint regarding GGNS sale-leaseback renewal (docket EL18-152)

5/14/18 - Complaint alleging (1) SERI was imprudent in renewing thesale-leaseback, (2) SERI violated the filed rate when it included the cost of capital additions associated with the sale-leaseback interest in UPSA billings, (3) SERI is double-recovering costs by including both the lease payments and the capital additions in UPSA billings, and (4) SERI incorrectly excluded ADIT associated with uncertain tax positions from UPSA billings

6/28/18 - SERI motion to dismiss and answer in opposition to the LPSC's claims

9/20/18 - FERC order setting LPSCsale-leaseback complaint for hearing and settlement

12/14/18 - Procedural schedule adopted

Key dates

Date

Event

Date

Event

6/28/19

SERI answering testimony

11/12/19

Hearing

7/31/19

FERC staff direct/answering testimony

1/6/20

Initial briefs

9/6/19

SERI cross-answering testimony

2/7/20

Reply briefs

10/11/19

FERC staff and LPSC rebuttal testimony

4/6/20

Initial decision

38

Jurisdictional rate filing guidelines

E-AR

E-LA

E-MS

E-NO

E-TX

SERI

Latest filing

FRP filed 7/6/18

FRP filed 6/30/18

FRP filed

Rate case

2018 rate

Monthly cost

3/15/19

filed 9/21/18

case filed

of service1

5/15/18

Next filing

FRP: July 2019

FRP: by 5/31/19

TBD

FRP: in 2020

TBD

Every month

date

(proposed)

Rate

January

September

June

1 year +

35 days after

Immediate

effective date

following filing

following filing

following

15 days after

filing2

filing

filing

Evaluation

Forward test year

Historical test year

Historical test

Historical

12-month

Actual

period

ended 12/31

ended 12/31 except

year ended

and

historical test

current

new generation and

12/31 plus

forecasted

year with

month

transmission closed

certain

test years

available

expense and

to plant above

known and

ended 12/31

updates

prior month-

baseline through

measurable

end balance

8/31 of filing year

changes

sheet

through

12/31

FRP term /

FRP: 5 years

FRP: 3 years

FRP: No

FRP: 3 years

n/a

Monthly cost

post FRP

(2017-2021 test

(20172019 test

specified

(2019-2021

of service

framework

years); option to

years); option to

termination;

test years)

continues

request FRP

request FRP

option to file

(proposed)

until

extension, file rate

extension, file rate

rate case as

terminated

case or do nothing

case or do nothing

needed

by mutual

agreement

1Not required to be filed per FERC order

2May be suspended for an additional 150 days

39

Generation projects

Estimated

Estimated in

Project

Location

OpCo

MW

cost

service

Status

St. Charles

Montz, LA

E-LA

~980

$869M1

2019

Final testing

Power Station

CCGT

Choctaw Generating

French Camp, MS

E-MS

~810

$401M2

20193,4

Filed for regulatory

Station

CCGT

approval

Lake Charles Power

Westlake, LA

E-LA

~994

$872M1

2020

Under construction

Station

CCGT

New Orleans Power

New Orleans, LA

E-NO

~128

$210M1

2020

Under construction

Station

RICE

Washington Parish

Bogalusa, LA

E-LA

~361 CT

$261M1

2021

Under construction

Energy Center

Montgomery County

Willis, TX

E-TX

~993

$937M1

2021

Under construction

Power Station

CCGT

1Includes transmission interconnection and other related costs

2Includes planned improvements

3E-MSestimated acquisition date; original in service date 2003

4Due diligence has identified a potential mechanical issue that may have to be addressed prior to closing; there is a possibility that closing may be delayed to allow time to resolve the issue

40

Renewable projects

Owned /

Estimated

Project

OpCo

Location

MW

PPA

in service

In process

Rooftop solar

E-NO

New Orleans, LA

5

Owned

2019

Solar

E-LA

Various

~30

PPA

2019 / 2020

Chicot Solar

E-AR

Chicot County, AR

100

PPA

2020

LA3 West Baton Rouge Solar

E-LA

Baton Rouge, LA

50

PPA

2020

In regulatory review

New Orleans Solar Station

E-NO

New Orleans, LA

20

Owned

2020

St. James Solar

E-NO

St. James Parish, LA

20

PPA

2021

Sunflower Solar

E-MS

Sunflower County, MS

100

Owned

2021

Iris Solar

E-NO

Washington Parish, LA

50

Owned

2021

Selected / regulatory filing pending

Searcy Solar

E-AR

Searcy, AR

100 (including

Owned

2021

10MW battery)

RFPs

Solar

E-AR

TBD

200

Owned

2022 / 2023

Solar

E-TX

TBD

200

Owned

2022 / 2023

and PPA

41

E-MS - Choctaw Generating Station

Project overview (docket 2018-UA-204)

Item

Details

MW

~810 (summer rating)

Estimated total investment

$401M1

Plant type

CCGT (2003 vintage)

Location

French Camp, MS

Closing date

Targeting 4Q192

Recovery mechanism

Proposing a rider to the FRP for adjustment outside of

sharing, to begin contemporaneously with closing

Status

E-MS filed CCN petition for approval of acquisition

Key dates

Date

Event

3Q192

Targeted decision

1Includes planned improvements

2Due diligence has identified a potential mechanical issue that may have to be addressed prior to closing; there is a possibility that closing may be delayed to allow time to resolve the issue

42

E-MS - Sunflower Solar Project

Project overview (docket 2018-UA-267)

Item

Details

MW

100

Estimated total

$153M1

investment

Plant type

Solar PV

Location

Sunflower County, MS

Closing date

Targeting 4Q21

In-service date

Targeting 4Q21

Recovery mechanism

Proposing a rider to the FRP for adjustment outside of

sharing, to begin contemporaneously with closing

Status

E-MS filed joint CCN petition with Sunflower Solar Project,

LLC for approval of build-own-transfer structured transaction

Key dates

Date Event

4Q19 Targeted decision

1Includes acquisition cost of $138M plus other related costs

43

EWC overview

Region breakdown; % MW as of 12/31/18

EWC nuclear plants

Indian

Indian

Indian

Point 1

Point 2

Point 3

Palisades

Pilgrim

MISO

NYISO

Planned closing date Shut down 4/30/20

4/30/21

5/31/22

5/31/19

30

52

18

NEPOOL

Generation portfolio; % MW as of 12/31/18

Net MW

n/a

1,028

1,041

811

688

Energy market

n/a

NYISO

NYISO

MISO

NEPOOL

(closest hubs)

(Zone G)

(Zone G)

(Indiana)

(Mass Hub)

Net book value

$315M

$280M

$180M

(3/31/19)1

NDT balance

$510M

$645M

$845M

$481M

$1,040M

(3/31/19)

ARO liability balance

$231M

$783M

$765M

$558M3

$829M

Gas

Other

(3/31/19)2

and oil

5 5

90

Nuclear

EWC non-nuclear plants

ISES 2

Nelson 6

RS Cogen

COD

1983

1982

2002

Fuel / technology

Coal

Coal

CCGT cogen

Net MW owned

121

60

213

Market

MISO

MISO

MISO

1Entergy's adjusted investment in the companies being sold

2ARO liability balances are based on most recent estimates and are subject to change

3Includes $40M for Big Rock Point

44

Pilgrim and Palisades transactions

Transaction highlights

Item

Pilgrim

Palisades

Structure

Equity sale of ENGC

Equity sale of ENP

Purchaser

Nuclear Asset Management Co., LLC

Nuclear Asset Management Co., LLC

(Holtec International subsidiary)

(Holtec International subsidiary)

Conditions to

Permanent shutdown and reactor defuel

Permanent shutdown and reactor

close include

NRC approval

defuel

FERC approval (switchyard change of

NRC approval

control)

Minimum NDT balance

Minimum NDT balance

Pilgrim transaction close

Palisades agreement has not been

terminated due to breach by purchaser

Status

Filed license transfer application with NRC

Executed purchase and sale

agreement

Targeted timeline

Event

Pilgrim

Palisades

NRC filing

November 2018

TBD

FERC filing

2Q19

n/a

Targeted close

By the end of 2019

By the end of 2022

45

Indian Point transaction

Transaction highlights

Item

Structure

Equity sale of IPEC owners

Purchaser

Nuclear Asset Management Co., LLC (Holtec International subsidiary)

Conditions to

Permanent shutdown and reactor defuel

close include

NRC approval

NY Public Service Commission action on the ownership transfer

NYS Department of Environmental Conservation action on the

decommissioning plan

NDT

No NDT minimum balance or contribution

Limitations on withdrawals

Controls on investment management between signing and closing

Status

Executed purchase and sale agreement

Targeted timeline

Event

Date

NRC filing

4Q19

New York State filing

4Q19

Targeted close

3Q21

46

Utility book ROE summary

Table 1: Utility book ROE summary

LTM ending March 31, 2019

($ in millions)

E-AR

E-LA

E-MS

E-NO

E-TX

Utility1

As-reported earnings available to common stock

(a)

255

692

118

51

166

1,499

Less adjustments:

2012/2013 IRS audit settlement

(2)

50

(1)

-

(1)

44

Tax item from restructuring of E-AR

170

Reserve for guaranteed sharing with E-AR customers

(40)

Income tax on customer sharing

10

4Q18 E-TX reversal of a portion of the tax reform

38

38

regulatory liability recorded in 2017

Total adjustments

(b)

(2)

50

(1)

-

37

223

Adjusted earnings available to common stock

(c) = (a)-(b)

257

642

119

51

129

1,276

Average common equity

(d)

2,717

5,698

1,254

437

1,361

11,920

As-reported ROE

(a) / (d)

9.4%

12.1%

9.4%

11.7%

12.2%

12.6%

Adjusted ROE

(c) / (d)

9.4%

11.3%

9.5%

11.7%

9.5%

10.7%

Calculations may differ due to rounding

1Utility earnings do not equal the sum of the operating companies due primarily to SERI(as-reported earnings ~$95.4M, adjusted earnings

~$95.7M and average common equity ~$693M) and the tax item from restructuring (net of sharing) adjustment at Entergy Utility Holding Co, as well as preferred dividend requirements

47

Regulation G reconciliations

Table 2: Parent debt to total debt, excluding securitization debt

Reconciliation of GAAP to Non-GAAP measures

($ in millions)

1Q19

Entergy Corporation notes:

Due September 2020

450

Due July 2022

650

Due September 2026

750

Total parent long-term debt

1,850

Revolver draw

320

Commercial paper

1,942

Unamortized debt issuance costs / (discounts)

(9)

Total parent debt

(a)

4,103

Total debt

19,325

Less securitization debt

398

Total debt, excluding securitization debt

(b)

18,927

Parent debt to total debt, excluding securitization debt

(a)/(b)

21.7%

Calculations may differ due to rounding

48

Regulation G reconciliations

Table 3: FFO to debt, excluding securitization debt; FFO to debt, excluding securitization debt, return of unprotected excess ADIT and severance and retention payments associated with exit of EWC

Reconciliation of GAAP to Non-GAAP measures

($ in millions)

1Q19

Total debt

19,325

Less securitization debt

398

Total debt excluding securitization debt

(a)

18,927

OCF (LTM)

2,329

AFUDC-borrowed funds (LTM)

(65)

Less working capital in OCF (LTM):

Receivables

7

Fuel inventory

58

Accounts payable

103

Taxes accrued

51

Interest accrued

(5)

Other working capital accounts

(178)

Securitization regulatory charges

121

Total

157

FFO (LTM)

(b)

2,107

FFO to debt, excluding securitization debt

(b)/(a)

11.1%

Estimated return of unprotected excess ADIT (LTM pre-tax)

(c)

692

Severance and retention payments assoc. with exit of EWC (LTM pre-tax)

(d)

43

FFO to debt, excluding securitization debt, return of unprotected excess ADIT,

(b+c+d)/(a)

15.0%

and severance and retention payments assoc. with exit of EWC

Calculations may differ due to rounding

49

Abbreviations and acronyms

Abbreviations and acronyms

ADIT

Accumulated deferred income taxes

AFUDC-

Allowance for borrowed funds used

borrowed funds during construction

AMI

Advanced metering infrastructure

ANO

Units 1 and 2 of Arkansas Nuclear One

owned by E-AR (nuclear)

APSC

Arkansas Public Service Commission

ARO

Asset retirement obligation

bps

Basis points

CAGR

Compound annual growth rate

CCGT

Combined cycle gas turbine

CCN

Certificate of convenience and

necessity

CCNO

Council of the City of New Orleans,

Louisiana

COD

Commercial operation date

CWIP

Construction work in progress

CT

Simple cycle combustion turbine

DCRF

Distribution cost recovery factor

E-AR

Entergy Arkansas, LLC

E-LA

Entergy Louisiana, LLC

E-MS

Entergy Mississippi, LLC

E-NO

Entergy New Orleans, LLC

E-TX

Entergy Texas, Inc.

Abbreviations and acronyms

EBITDA

Earnings before interest, income taxes,

depreciation and amortization

EEI

Edison Electric Institute

ESG

Environmental, social, and governance

ESL

Entergy Services, LLC

ETR

Entergy Corporation

EWC

Entergy Wholesale Commodities

FERC

Federal Energy Regulatory Commission

FFO

Funds from operations

FitzPatrick

James A. FitzPatrick Nuclear Power Plant

(nuclear, sold March 31, 2017)

FRP

Formula rate plan

GAAP

U.S. generally accepted accounting

principles

Grand Gulf or

Unit 1 of Grand Gulf Nuclear Station

GGNS

(nuclear), 90% owned or leased by SERI

Indian Point 1

Unit 1 of Indian Point Energy Center (shut

down in 1974)

Indian Point 2 or

Unit 2 of Indian Point Energy Center

IP2

(nuclear)

Indian Point 3 or

Unit 3 of Indian Point Energy Center

IP3

(nuclear)

IPEC /

Indian Point Energy Center (nuclear)

Indian Point

50

Abbreviations and acronyms (continued)

Abbreviations and acronyms

ISES 2

Unit 2 of Independence Steam Electric

Station (coal)

LPSC

Louisiana Public Service Commission

LTM

Last twelve months

MISO

Midcontinent Independent System

Operator, Inc.

Moody's

Moody's Investors Service

MPSC

Mississippi Public Service Commission

MTEP

MISO Transmission Expansion Planning

NDT

Nuclear decommissioning trust

Nelson 6

Unit 6 of Roy S. Nelson plant (coal)

NEPOOL

New England Power Pool

Ninemile 6

Ninemile Point Unit 6 (CCGT)

NOPS

New Orleans Power Station (reciprocating

internal combustion engine/natural gas)

NRC

Nuclear Regulatory Commission

NYISO

New York Independent System Operator,

Inc.

NYS

New York State

O&M

Operation and maintenance expense

OCF

Net cash flow provided by operating

activities

OpCo

Utility operating company

Abbreviations and acronyms

Palisades

Palisades Power Plant (nuclear)

Pilgrim

Pilgrim Nuclear Power Station (nuclear)

PPA

Power purchase agreement or purchased

power agreement

PUCT

Public Utility Commission of Texas

PV

Photovoltaic

RFP

Request for proposals

RICE

Reciprocating internal combustion engine

ROE

Return on equity

River Bend

River Bend Station (nuclear)

RS Cogen

RS Cogen facility (CCGT cogeneration)

RSP

Rate stabilization plan

S&P

S&P Global Ratings

SERI

System Energy Resources, Inc.

TCRF

Transmission cost recovery factor

Union

Union Power Station (CCGT)

UPSA

Unit power sales agreement

VPUC

Vermont Public Utility Commission

VY / Vermont

Vermont Yankee Nuclear Power Station

Yankee

(nuclear, sold January 11, 2019)

Waterford

Waterford Steam Electric Station, Unit

No. 3 (nuclear)

WACC

Weighted-average cost of capital

Disclaimer

Entergy Corporation published this content on 14 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 May 2019 07:26:02 UTC