(Mark One)
|
|
X
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
|
For the Quarterly Period Ended September 30, 2012
|
|
OR
|
|
TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the transition period from ____________ to ____________
|
Commission
File Number
|
Registrant, State of Incorporation or Organization,
Address of Principal Executive Offices, Telephone
Number, and IRS Employer Identification No.
|
Commission
File Number
|
Registrant, State of Incorporation or Organization,
Address of Principal Executive Offices, Telephone
Number, and IRS Employer Identification No.
|
|
1-11299
|
ENTERGY CORPORATION
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 576-4000
72-1229752
|
1-31508
|
ENTERGY MISSISSIPPI, INC.
(a Mississippi corporation)
308 East Pearl Street
Jackson, Mississippi 39201
Telephone (601) 368-5000
64-0205830
|
|
1-10764
|
ENTERGY ARKANSAS, INC.
(an Arkansas corporation)
425 West Capitol Avenue
Little Rock, Arkansas 72201
Telephone (501) 377-4000
71-0005900
|
0-05807
|
ENTERGY NEW ORLEANS, INC.
(a Louisiana corporation)
1600 Perdido Street
New Orleans, Louisiana 70112
Telephone (504) 670-3700
72-0273040
|
|
0-20371
|
ENTERGY GULF STATES LOUISIANA, L.L.C.
(a Louisiana limited liability company)
446 North Boulevard
Baton Rouge, Louisiana 70802
Telephone (800) 368-3749
74-0662730
|
1-34360
|
ENTERGY TEXAS, INC.
(a Texas corporation)
350 Pine Street
Beaumont, Texas 77701
Telephone (409) 981-2000
61-1435798
|
|
1-32718
|
ENTERGY LOUISIANA, LLC
(a Texas limited liability company)
446 North Boulevard
Baton Rouge, Louisiana 70802
Telephone (800) 368-3749
75-3206126
|
1-09067
|
SYSTEM ENERGY RESOURCES, INC.
(an Arkansas corporation)
Echelon One
1340 Echelon Parkway
Jackson, Mississippi 39213
Telephone (601) 368-5000
72-0752777
|
|
Large
accelerated
filer
|
Accelerated
filer
|
Non-
accelerated
filer
|
Smaller
reporting
company
|
||||
Entergy Corporation
|
Ö
|
||||||
Entergy Arkansas, Inc.
|
Ö
|
||||||
Entergy Gulf States Louisiana, L.L.C.
|
Ö
|
||||||
Entergy Louisiana, LLC
|
Ö
|
||||||
Entergy Mississippi, Inc.
|
Ö
|
||||||
Entergy New Orleans, Inc.
|
Ö
|
||||||
Entergy Texas, Inc.
|
Ö
|
||||||
System Energy Resources, Inc.
|
Ö
|
Common Stock Outstanding
|
Outstanding at October 31, 2012
|
|
Entergy Corporation
|
($0.01 par value)
|
177,732,990
|
Page Number
|
|
iii
|
|
v
|
|
Entergy Corporation and Subsidiaries
|
|
1
|
|
24
|
|
25
|
|
26
|
|
28
|
|
30
|
|
31
|
|
32
|
|
83
|
|
Entergy Arkansas, Inc. and Subsidiaries
|
|
84
|
|
90
|
|
91
|
|
92
|
|
94
|
|
95
|
|
Entergy Gulf States Louisiana, L.L.C.
|
|
96
|
|
105
|
|
106
|
|
107
|
|
108
|
|
110
|
|
111
|
|
Entergy Louisiana, LLC and Subsidiaries
|
|
112
|
|
121
|
|
122
|
|
123
|
|
124
|
|
126
|
|
127
|
|
Entergy Mississippi, Inc.
|
|
128
|
|
135
|
|
137
|
|
138
|
|
140
|
|
141
|
Page Number
|
|
Entergy New Orleans, Inc.
|
|
142
|
|
148
|
|
149
|
|
150
|
|
152
|
|
153
|
|
Entergy Texas, Inc. and Subsidiaries
|
|
154
|
|
161
|
|
163
|
|
164
|
|
166
|
|
167
|
|
System Energy Resources, Inc.
|
|
168
|
|
171
|
|
173
|
|
174
|
|
176
|
|
177
|
|
177
|
|
177
|
|
178
|
|
183
|
|
186
|
·
|
resolution of pending and future rate cases and negotiations, including various performance-based rate discussions, Entergy's utility supply plan, and recovery of fuel and purchased power costs;
|
·
|
the termination of Entergy Arkansas’s and Entergy Mississippi’s participation in the System Agreement in December 2013 and November 2015, respectively;
|
·
|
regulatory and operating challenges and uncertainties associated with the Utility operating companies’ proposal to move to the MISO RTO and the operations of the independent coordinator of transmission for Entergy's Utility service area;
|
·
|
risks associated with the proposed spin-off and subsequent merger of Entergy’s electric transmission business into a subsidiary of ITC Holdings Corp., including the risk that Entergy and the Utility operating companies may not be able to timely satisfy the conditions or obtain the approvals required to complete such transaction or such approvals may contain material restrictions or conditions, and the risk that if completed, the transaction may not achieve its anticipated results;
|
·
|
changes in utility regulation, including the beginning or 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;
|
·
|
changes in regulation of nuclear generating facilities and nuclear materials and fuel, including possible shutdown of nuclear generating facilities, particularly those owned or operated by the Entergy Wholesale Commodities business, and the effects of new or existing safety or environmental concerns regarding nuclear power plants and nuclear fuel;
|
·
|
resolution of pending or future applications, and related regulatory proceedings and litigation, for license renewals or modifications of nuclear generating facilities;
|
·
|
the performance of and deliverability of power from Entergy's generation resources, including the capacity factors at its nuclear generating facilities;
|
·
|
Entergy's ability to develop and execute on a point of view regarding future prices of electricity, natural gas, and other energy-related commodities;
|
·
|
prices for power generated by Entergy's merchant 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 those facilities, including the Entergy Wholesale Commodities nuclear plants;
|
·
|
the prices and availability of fuel and power Entergy must purchase for its Utility customers, and Entergy's ability to meet credit support requirements for fuel and power supply contracts;
|
·
|
volatility and changes in markets for electricity, natural gas, uranium, and other energy-related commodities;
|
·
|
changes in law resulting from federal or state energy legislation or legislation subjecting energy derivatives used in hedging and risk management transactions to governmental regulation;
|
·
|
changes in environmental, tax, and other laws, including requirements for reduced emissions of sulfur, nitrogen, carbon, mercury, and other substances, and changes in costs of compliance with environmental and other laws and regulations;
|
·
|
uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel and nuclear waste storage and disposal;
|
·
|
variations in weather and the occurrence of hurricanes and 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, federal and local cost recovery mechanisms, securitization, and insurance;
|
·
|
effects of climate change;
|
·
|
Entergy's ability to manage its capital projects and operation and maintenance costs;
|
·
|
Entergy's ability to purchase and sell assets at attractive prices and on other attractive terms;
|
·
|
the economic climate, and particularly economic conditions in Entergy's Utility service area and the Northeast United States and events that could influence economic conditions in those areas;
|
·
|
the effects of Entergy's strategies to reduce tax payments;
|
·
|
changes in the financial markets, particularly those affecting the availability of capital and Entergy's ability to refinance existing debt, execute share repurchase programs, and fund investments and acquisitions;
|
·
|
actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies' ratings criteria;
|
·
|
changes in inflation and interest rates;
|
·
|
the effect of litigation and government investigations or proceedings;
|
·
|
advances in technology;
|
·
|
the potential effects of threatened or actual terrorism, cyber-attacks or data security breaches, and war or a catastrophic event such as a nuclear accident or a natural gas pipeline explosion;
|
·
|
Entergy's ability to attract and retain talented management and directors;
|
·
|
changes in accounting standards and corporate governance;
|
·
|
declines in the market prices of marketable securities and resulting funding requirements for Entergy's defined benefit pension and other postretirement benefit plans;
|
·
|
changes in decommissioning trust fund values or earnings or in the timing of or cost to decommission nuclear plant sites;
|
·
|
factors that could lead to impairment of long-lived assets; and
|
·
|
the ability to successfully complete merger, acquisition, or 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.
|
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
|
|
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
|
|
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 Gulf States Louisiana, L.L.C., a company created in connection with 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
|
Entergy Texas, Inc., a company created in connection with 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 Wholesale
Commodities (EWC)
|
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
|
|
EPA
|
United States Environmental Protection Agency
|
|
ERCOT
|
Electric Reliability Council of Texas
|
|
FASB
|
Financial Accounting Standards Board
|
|
FERC
|
Federal Energy Regulatory Commission
|
|
FitzPatrick
|
James A. FitzPatrick Nuclear Power Plant (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
|
|
Form 10-K
|
Annual Report on Form 10-K for the calendar year ended December 31, 2011 filed with the SEC by Entergy Corporation and its Registrant Subsidiaries
|
|
Grand Gulf
|
Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy
|
|
GWh
|
Gigawatt-hour(s), which equals one million kilowatt-hours
|
|
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
|
|
Indian Point 3
|
Unit 3 of Indian Point Energy Center (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
|
|
IRS
|
Internal Revenue Service
|
|
ISO
|
Independent System Operator
|
Abbreviation or Acronym
|
Term
|
kW
|
Kilowatt, which equals one thousand watts
|
kWh
|
Kilowatt-hour(s)
|
LPSC
|
Louisiana Public Service Commission
|
MISO
|
Midwest Independent Transmission System Operator, Inc., a regional transmission organization
|
MMBtu
|
One million British Thermal Units
|
MPSC
|
Mississippi Public Service Commission
|
MW
|
Megawatt(s), which equals one thousand kilowatts
|
MWh
|
Megawatt-hour(s)
|
Net MW in operation
|
Installed capacity owned and operated
|
NRC
|
Nuclear Regulatory Commission
|
NYPA
|
New York Power Authority
|
Palisades
|
Palisades Power Plant (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
|
Pilgrim
|
Pilgrim Nuclear Power Station (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
|
PPA
|
Purchased power agreement or power purchase agreement
|
PUCT
|
Public Utility Commission of Texas
|
Registrant Subsidiaries
|
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.
|
River Bend
|
River Bend Station (nuclear), owned by Entergy Gulf States Louisiana
|
RTO
|
Regional transmission organization
|
SEC
|
Securities and Exchange Commission
|
SPP
|
Southwest Power Pool
|
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.
|
TWh
|
Terawatt-hour(s), which equals one billion kilowatt-hours
|
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
|
·
|
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. As discussed in more detail in “Plan to Spin Off the Utility’s Transmission Business,” in the Form 10-K, in December 2011, Entergy entered into an agreement to spin off its transmission business and merge it with a newly-formed subsidiary of ITC Holdings Corp.
|
·
|
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. 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.
|
Company
|
Hurricane Isaac
Restoration Costs |
|
(In Millions)
|
||
Entergy Arkansas
|
$10
|
|
Entergy Gulf States Louisiana
|
70-90
|
|
Entergy Louisiana
|
240-300
|
|
Entergy Mississippi
|
30-40
|
|
Entergy New Orleans
|
50-60
|
|
Total
|
$400-500
|
Utility
|
Entergy
Wholesale
Commodities |
Parent &
Other (1)
|
Entergy
|
|||||
(In Thousands)
|
||||||||
3rd Qtr 2011 Consolidated Net Income
|
$528,459
|
$130,862
|
($26,252)
|
$633,069
|
||||
Net revenue (operating revenue less fuel
expense, purchased power, and other
regulatory charges/credits)
|
189,220
|
(46,721)
|
(2,626)
|
139,873
|
||||
Other operation and maintenance expenses
|
40,964
|
16,059
|
(602)
|
56,421
|
||||
Taxes other than income taxes
|
(2,248)
|
(617)
|
(130)
|
(2,995)
|
||||
Depreciation and amortization
|
13,902
|
(15,664)
|
(79)
|
(1,841)
|
||||
Other income
|
(5,287)
|
(2,847)
|
(365)
|
(8,499)
|
||||
Interest expense
|
9,485
|
(2,227)
|
12,951
|
20,209
|
||||
Other expenses
|
3,442
|
(5,097)
|
-
|
(1,655)
|
||||
Income taxes
|
346,341
|
(29,926)
|
35,219
|
351,634
|
||||
3rd Qtr 2012 Consolidated Net Income
|
$300,506
|
$118,766
|
($76,602)
|
$342,670
|
(1)
|
Parent & Other include eliminations, which are primarily intersegment activity.
|
|
Amount
|
|
|
(In Millions)
|
|
2011 net revenue
|
$1,319
|
|
Mark-to-market tax settlement sharing
|
200
|
|
Grand Gulf recovery
|
31
|
|
Retail electric price
|
26
|
|
Purchased power capacity
|
(12)
|
|
Net wholesale revenue
|
(15)
|
|
Volume/weather
|
(35)
|
|
Other
|
(6)
|
|
2012 net revenue
|
$1,508
|
|
Amount
|
|
|
(In Millions)
|
|
2011 net revenue
|
$542
|
|
Nuclear realized price changes
|
(48)
|
|
Nuclear volume
|
(22)
|
|
Other
|
23
|
|
2012 net revenue
|
$495
|
2012
|
2011
|
|||
Owned capacity
|
6,612
|
6,016
|
||
GWh billed
|
12,002
|
11,255
|
||
Average realized revenue per MWh
|
$51.88
|
$56.02
|
||
Entergy Wholesale Commodities Nuclear Fleet
|
||||
Capacity factor
|
90%
|
98%
|
||
GWh billed
|
10,480
|
10,645
|
||
Average realized revenue per MWh
|
$52.27
|
$56.07
|
||
Refueling Outage Days:
|
||||
FitzPatrick
|
15
|
-
|
·
|
the deferral in 2011 of $13 million of 2010 Michoud plant maintenance costs pursuant to the settlement of Entergy New Orleans’ 2010 test year formula rate plan filing approved by the City Council in September 2011. See Note 2 to the financial statements in the Form 10-K for further discussion of the Entergy New Orleans 2010 test year formula rate plan filing and settlement;
|
·
|
$11 million of costs incurred in 2012 related to the planned spin-off and merger of the Utility’s transmission business;
|
·
|
an increase of $10 million resulting from a temporary increase in the Entergy Mississippi storm damage reserve authorized by the MPSC effective August 2012;
|
·
|
an increase of $7 million in energy efficiency costs at Entergy Arkansas. These costs are recovered through the energy efficiency rider and have no effect on net income;
|
·
|
an increase of $7 million in compensation and benefits costs primarily due to decreasing discount rates and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs; and
|
·
|
the amortization of $4 million of Hurricane Rita storm costs in accordance with a rate order from the PUCT effective September 2012. See Note 2 to the financial statements for discussion of the PUCT order.
|
·
|
an increase of $5 million in compensation and benefits costs primarily due to decreasing discount rates and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs;
|
·
|
an increase of $4 million due to the operations of the Rhode Island State Energy Center, which was acquired in December 2011; and
|
·
|
other items, including additional material and supply costs.
|
Utility
|
Entergy
Wholesale
Commodities
|
Parent &
Other (1)
|
Entergy
|
|||||
(In Thousands)
|
||||||||
2011 Consolidated Net Income
|
$949,854
|
$319,651
|
($62,159)
|
$1,207,346
|
||||
Net revenue (operating revenue less fuel
expense, purchased power, and other
regulatory charges/credits)
|
(6,473)
|
(149,942)
|
(4,871)
|
(161,286)
|
||||
Other operation and maintenance expenses
|
120,313
|
56,486
|
5,893
|
182,692
|
||||
Asset impairment
|
-
|
355,524
|
-
|
355,524
|
||||
Taxes other than income taxes
|
3,684
|
14,297
|
(145)
|
17,836
|
||||
Depreciation and amortization
|
28,061
|
(3,931)
|
(91)
|
24,039
|
||||
Other income
|
1,102
|
8,098
|
(207)
|
8,993
|
||||
Interest expense
|
17,546
|
1,346
|
23,306
|
42,198
|
||||
Other expenses
|
6,288
|
(54,105)
|
-
|
(47,817)
|
||||
Income taxes
|
92,347
|
(223,380)
|
45,101
|
(85,932)
|
||||
2012 Consolidated Net Income
|
$676,244
|
$31,570
|
($141,301)
|
$566,513
|
(1)
|
Parent & Other include eliminations, which are primarily intersegment activity.
|
|
Amount
|
|
|
(In Millions)
|
|
2011 net revenue
|
$3,772
|
|
Louisiana Act 55 financing tax settlement sharing
|
(163)
|
|
Volume/weather
|
(84)
|
|
Purchased power capacity
|
(25)
|
|
Net wholesale revenue
|
(24)
|
|
Grand Gulf recovery
|
31
|
|
Retail electric price
|
43
|
|
Mark-to-market tax settlement sharing
|
201
|
|
Other
|
14
|
|
2012 net revenue
|
$3,765
|
·
|
an increase in the energy efficiency rider at Entergy Arkansas, as approved by the APSC, effective July 2012. This increase is offset by costs included in other operation and maintenance expenses and has no effect on net income;
|
·
|
an increase in the storm cost recovery rider at Entergy Mississippi, as approved by the MPSC for a five-month period effective August 2012. This increase is offset by costs included in other operation and maintenance expenses and has no effect on net income;
|
·
|
a special formula rate plan rate increase at Entergy Louisiana effective May 2011 in accordance with a previous LPSC order relating to the acquisition of Unit 2 of the Acadia Energy Center; and
|
·
|
a base rate increase at Entergy Texas beginning May 2011 as a result of the settlement of the December 2009 rate case.
|
|
Amount
|
|
|
(In Millions)
|
|
2011 net revenue
|
$1,541
|
|
Nuclear realized price changes
|
(162)
|
|
Nuclear volume
|
(30)
|
|
Other
|
42
|
|
2012 net revenue
|
$1,391
|
2012
|
2011
|
|||
Owned capacity
|
6,612
|
6,016
|
||
GWh billed
|
34,957
|
32,376
|
||
Average realized revenue per MWh
|
$49.84
|
$55.20
|
||
Entergy Wholesale Commodities Nuclear Fleet
|
||||
Capacity factor
|
88%
|
93%
|
||
GWh billed
|
30,744
|
30,551
|
||
Average realized revenue per MWh
|
$50.42
|
$55.31
|
||
Refueling Outage Days:
|
||||
FitzPatrick
|
15
|
-
|
||
Indian Point 2
|
28
|
-
|
||
Indian Point 3
|
-
|
30
|
||
Palisades
|
34
|
-
|
||
Pilgrim
|
-
|
25
|
·
|
an increase of $42 million in compensation and benefits costs primarily due to decreasing discount rates and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs;
|
·
|
$27 million of costs incurred in 2012 related to the planned spin-off and merger of the Utility’s transmission business;
|
·
|
an increase of $17 million in fossil-fueled generation expenses resulting from higher outage costs primarily because of the timing of the outages and increased scope of outages compared to the same period in the prior year;
|
·
|
the deferral in 2011 of $13 million of 2010 Michoud plant maintenance costs pursuant to the settlement of Entergy New Orleans’ 2010 test year formula rate plan filing approved by the City Council in September 2011. See Note 2 to the financial statements in the Form 10-K for further discussion of the Entergy New Orleans 2010 test year formula rate plan filing and settlement;
|
·
|
an increase of $10 million resulting from a temporary increase in the Entergy Mississippi storm damage reserve authorized by the MPSC effective August 2012;
|
·
|
an increase of $9 million in energy efficiency costs at Entergy Arkansas. These costs are recovered through the energy efficiency rider and have no effect on net income;
|
·
|
nuclear insurance refunds of $5 million received in 2011; and
|
·
|
the amortization of $4 million of Hurricane Rita storm costs in accordance with a rate order from the PUCT effective September 2012. See Note 2 to the financial statements for discussion of the PUCT order.
|
·
|
a decrease of approximately $7 million as a result of the deferral or capitalization of storm restoration costs for Hurricane Isaac, which hit the Utility's service area in August 2012; and
|
·
|
the effect of the deferral, as approved by the FERC, and the LPSC for the Louisiana jurisdictions, of costs related to the transition and implementation of joining the MISO RTO, which reduced expenses by $10 million.
|
·
|
an increase of $23 million in compensation and benefits costs primarily due to decreasing discount rates and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs;
|
·
|
an increase of $15 million due to the operations of the Rhode Island State Energy Center, which was acquired in December 2011; and
|
·
|
other items, including additional material and supply costs.
|
September 30,
2012
|
December 31,
2011
|
|||
Debt to capital
|
57.7 %
|
57.3 %
|
||
Effect of excluding the securitization bonds
|
(2.0)%
|
(2.3)%
|
||
Debt to capital, excluding securitization bonds (1)
|
55.7 %
|
55.0 %
|
||
Effect of subtracting cash
|
(1.6)%
|
(1.5)%
|
||
Net debt to net capital, excluding securitization bonds (1)
|
54.1 %
|
53.5 %
|
(1)
|
Calculation excludes the Arkansas, Louisiana, and Texas securitization bonds, which are non-recourse to Entergy Arkansas, Entergy Louisiana, and Entergy Texas, respectively.
|
Capacity
|
Borrowings
|
Letters
of Credit
|
Capacity
Available
|
|||
(In Millions)
|
||||||
$3,500
|
$1,315
|
$8
|
$2,177
|
2012
|
2011
|
|||
(In Millions)
|
||||
Cash and cash equivalents at beginning of period
|
$694
|
$1,294
|
||
Cash flow provided by (used in):
|
||||
Operating activities
|
2,220
|
2,130
|
||
Investing activities
|
(2,323)
|
(2,395)
|
||
Financing activities
|
159
|
(42)
|
||
Net increase (decrease) in cash and cash equivalents
|
56
|
(307)
|
||
Cash and cash equivalents at end of period
|
$750
|
$987
|
·
|
a decrease of $167 million in pension contributions. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for a discussion of qualified pension and other postretirement benefits funding; and
|
·
|
an increase in deferred fuel cost collections.
|
·
|
the decrease in Entergy Wholesale Commodities net revenue that is discussed above;
|
·
|
an increase of $42 million in income tax payments; and
|
·
|
a refund of $30.6 million, including interest, paid to AmerenUE in June 2012. The FERC ordered Entergy Arkansas to refund to AmerenUE the rough production cost equalization payments previously collected. See Note 2 to the financial statements for further discussion of the FERC order.
|
·
|
the purchase of the Acadia Unit 2 by Entergy Louisiana for approximately $300 million in April 2011;
|
·
|
a decrease in nuclear fuel purchases because of variations from year to year in the timing and pricing of fuel reload requirements, material and services deliveries, and the timing of cash payments during the nuclear fuel cycle; and
|
·
|
proceeds received from the U.S. Department of Energy resulting from litigation regarding the storage of spent nuclear fuel. The litigation is discussed in more detail in Part II, Item 5, “Spent Nuclear Fuel.”
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
|||||||
Energy
|
||||||||||||
Percent of planned generation under contract (a):
|
||||||||||||
Unit-contingent (b)
|
65%
|
41%
|
22%
|
12%
|
12%
|
13%
|
||||||
Unit-contingent with availability guarantees (c)
|
13%
|
19%
|
15%
|
13%
|
13%
|
13%
|
||||||
Firm LD (d)
|
24%
|
24%
|
55%
|
-%
|
-%
|
-%
|
||||||
Offsetting positions (e)
|
(13)%
|
-%
|
(19)%
|
-%
|
-%
|
-%
|
||||||
Total
|
89%
|
84%
|
73%
|
25%
|
25%
|
26%
|
||||||
Planned generation (TWh) (f) (g)
|
11
|
40
|
41
|
41
|
40
|
41
|
||||||
Average revenue per MWh on contracted volumes:
|
||||||||||||
Minimum
|
$47
|
$45
|
$44
|
$48
|
$50
|
$51
|
||||||
Expected based on market prices as of September 30, 2012
|
$47
|
$45
|
$45
|
$49
|
$51
|
$52
|
||||||
Sensitivity: -/+ $10 per MWh market price change
|
$47
|
$45-$47
|
$44-$48
|
$48-$52
|
$50-$54
|
$51-$55
|
||||||
Capacity
(n)
|
||||||||||||
Percent of capacity sold forward (h):
|
||||||||||||
Bundled capacity and energy contracts (i)
|
16%
|
16%
|
16%
|
16%
|
16%
|
16%
|
||||||
Capacity contracts (j)
|
59%
|
28%
|
13%
|
12%
|
5%
|
-%
|
||||||
Total
|
75%
|
44%
|
29%
|
28%
|
21%
|
16%
|
||||||
Planned net MW in operation (g) (k)
|
5,011
|
5,011
|
5,011
|
5,011
|
5,011
|
5,011
|
||||||
Average revenue under contract per kW per month
(applies to Capacity contracts only)
|
$2.2
|
$2.3
|
$2.9
|
$3.3
|
$3.4
|
$-
|
||||||
Total Nuclear Energy and Capacity Revenues
|
||||||||||||
Expected sold and market total revenue per MWh
|
$48
|
$47
|
$45
|
$45
|
$47
|
$48
|
||||||
Sensitivity: -/+ $10 per MWh market price change
|
$47-$49
|
$46-$51
|
$42-$51
|
$38-$53
|
$40-$55
|
$41-$56
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
|||||||
Energy
|
||||||||||||
Percent of planned generation under contract (a):
|
||||||||||||
Cost-based contracts (l)
|
42%
|
39%
|
32%
|
35%
|
32%
|
32%
|
||||||
Firm LD (d)
|
5%
|
5%
|
5%
|
7%
|
6%
|
6%
|
||||||
Total
|
47%
|
44%
|
37%
|
42%
|
38%
|
38%
|
||||||
Planned generation (TWh) (f) (m)
|
1
|
6
|
6
|
6
|
6
|
6
|
||||||
Capacity
|
||||||||||||
Percent of capacity sold forward (h):
|
||||||||||||
Cost-based contracts (l)
|
35%
|
29%
|
24%
|
24%
|
24%
|
24%
|
||||||
Bundled capacity and energy contracts (i)
|
8%
|
8%
|
8%
|
8%
|
8%
|
8%
|
||||||
Capacity contracts (j)
|
53%
|
47%
|
47%
|
48%
|
20%
|
-%
|
||||||
Total
|
96%
|
84%
|
79%
|
80%
|
52%
|
32%
|
||||||
Planned net MW in operation (k) (m)
|
1,052
|
1,052
|
1,052
|
1,052
|
1,052
|
1,052
|
(a)
|
Percent of planned generation output sold or purchased forward under contracts, forward physical contracts, forward financial contracts, or options that mitigate price uncertainty that may require regulatory approval or approval of transmission rights
|
(b)
|
Transaction under which power is supplied from a specific generation asset; if the asset is not operating, seller is generally not liable to buyer for any damages
|
(c)
|
A sale of power on a unit-contingent basis coupled with a guarantee of availability provides for the payment to the power purchaser of contract damages, if incurred, in the event the seller fails to deliver power as a result of the failure of the specified generation unit to generate power at or above a specified availability threshold. All of Entergy’s outstanding guarantees of availability provide for dollar limits on Entergy’s maximum liability under such guarantees.
|
(d)
|
Transaction that requires receipt or delivery of energy at a specified delivery point (usually at a market hub not associated with a specific asset) or settles financially on notional quantities; if a party fails to deliver or receive energy, defaulting party must compensate the other party as specified in the contract, a portion of which may be capped through the use of risk management products
|
(e)
|
Transactions for the purchase of energy, generally to offset a Firm LD transaction
|
(f)
|
Amount of output expected to be generated by Entergy Wholesale Commodities resources considering plant operating characteristics, outage schedules, and expected market conditions that effect dispatch
|
(g)
|
Assumes NRC license renewal for plants whose current licenses expire within five years and uninterrupted normal operation at all plants. NRC license renewal applications are in process for two units, as follows (with current license expirations in parentheses): Indian Point 2 (September 2013) and Indian Point 3 (December 2015). For a discussion regarding the continued operation of the Vermont Yankee plant, see “
Impairment of Long-Lived Assets
” in Note 1 to the financial statements in the Form 10-K and “
Vermont Yankee
” in Note 11 to the financial statements herein. For a discussion regarding the license renewals for Indian Point 2 and Indian Point 3, see “
Entergy Wholesale Commodities Authorizations to Operate Its Nuclear Power Plants
” above.
|
(h)
|
Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions
|
(i)
|
A contract for the sale of installed capacity and related energy, priced per megawatt-hour sold
|
(j)
|
A contract for the sale of an installed capacity product in a regional market
|
(k)
|
Amount of capacity to be available to generate power and/or sell capacity considering uprates planned to be completed during the year. The increased capacity figure for the nuclear portfolio from the 10-K reflects the final testing and confirmation of a small incremental increase in output associated with equipment replacements at Palisades.
|
(l)
|
Contracts priced in accordance with cost-based rates, a ratemaking concept used for the design and development of rate schedules to ensure that the filed rate schedules recover only the cost of providing the service; these contracts are on owned non-utility resources located within Entergy’s Utility service area, which do not operate under market-based rate authority. The percentage sold assumes approval of long-term transmission rights. Includes sales to the Utility through 2013 of 121 MW of capacity and energy from Entergy Power sourced from Independence Steam Electric Station Unit 2.
|
(m)
|
Non-nuclear planned generation and net MW in operation include purchases from affiliated and non-affiliated counterparties under long-term contracts and exclude energy and capacity from Entergy Wholesale Commodities’ wind investment accounted for under the equity method of accounting and from the 544 MW Ritchie plant that is not planned to operate.
|
(n)
|
Reflects effect of ISO New England’s acceptance in the second quarter 2012 of Vermont Yankee’s bid to delist for the June 2015 through May 2016 forward capacity auction #6 and retroactively for the June 2013 through May 2014 forward capacity auction #4. ISO New England has until May 2013 to consider Vermont Yankee’s delist bid for forward capacity auction #5.
|
ENTERGY CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands, Except Share Data) | ||||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 2,320,360 | $ | 2,733,601 | $ | 6,039,752 | $ | 6,811,538 | ||||||||
Natural gas
|
23,557 | 26,439 | 93,444 | 126,453 | ||||||||||||
Competitive businesses
|
619,643 | 635,513 | 1,732,624 | 1,802,050 | ||||||||||||
TOTAL
|
2,963,560 | 3,395,553 | 7,865,820 | 8,740,041 | ||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operating and Maintenance:
|
||||||||||||||||
Fuel, fuel-related expenses, and
|
||||||||||||||||
gas purchased for resale
|
596,270 | 849,982 | 1,572,265 | 1,921,007 | ||||||||||||
Purchased power
|
336,552 | 475,335 | 966,816 | 1,289,180 | ||||||||||||
Nuclear refueling outage expenses
|
62,582 | 64,566 | 184,288 | 191,517 | ||||||||||||
Asset impairment
|
- | - | 355,524 | - | ||||||||||||
Other operation and maintenance
|
765,242 | 708,821 | 2,259,758 | 2,077,066 | ||||||||||||
Decommissioning
|
56,796 | 56,467 | 126,641 | 167,229 | ||||||||||||
Taxes other than income taxes
|
149,049 | 152,044 | 424,329 | 406,493 | ||||||||||||
Depreciation and amortization
|
281,740 | 283,581 | 836,711 | 812,672 | ||||||||||||
Other regulatory charges
|
24,477 | 203,848 | 162,509 | 204,338 | ||||||||||||
TOTAL
|
2,272,708 | 2,794,644 | 6,888,841 | 7,069,502 | ||||||||||||
OPERATING INCOME
|
690,852 | 600,909 | 976,979 | 1,670,539 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Allowance for equity funds used during construction
|
18,396 | 21,516 | 70,986 | 59,558 | ||||||||||||
Interest and investment income
|
24,490 | 33,238 | 94,767 | 95,906 | ||||||||||||
Miscellaneous - net
|
(10,768 | ) | (14,137 | ) | (41,794 | ) | (40,498 | ) | ||||||||
TOTAL
|
32,118 | 40,617 | 123,959 | 114,966 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
155,800 | 137,301 | 452,162 | 409,484 | ||||||||||||
Allowance for borrowed funds used during construction
|
(8,003 | ) | (9,713 | ) | (27,877 | ) | (27,397 | ) | ||||||||
TOTAL
|
147,797 | 127,588 | 424,285 | 382,087 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
575,173 | 513,938 | 676,653 | 1,403,418 | ||||||||||||
Income taxes
|
232,503 | (119,131 | ) | 110,140 | 196,072 | |||||||||||
CONSOLIDATED NET INCOME
|
342,670 | 633,069 | 566,513 | 1,207,346 | ||||||||||||
Preferred dividend requirements of subsidiaries
|
5,582 | 5,015 | 16,108 | 15,046 | ||||||||||||
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION
|
$ | 337,088 | $ | 628,054 | $ | 550,405 | $ | 1,192,300 | ||||||||
Earnings per average common share:
|
||||||||||||||||
Basic
|
$ | 1.90 | $ | 3.55 | $ | 3.11 | $ | 6.70 | ||||||||
Diluted
|
$ | 1.89 | $ | 3.53 | $ | 3.10 | $ | 6.67 | ||||||||
Dividends declared per common share
|
$ | 0.83 | $ | 0.83 | $ | 2.49 | $ | 2.49 | ||||||||
Basic average number of common shares outstanding
|
177,517,846 | 176,950,469 | 177,184,464 | 177,857,667 | ||||||||||||
Diluted average number of common shares outstanding
|
177,975,075 | 177,723,020 | 177,636,549 | 178,805,215 | ||||||||||||
See Notes to Financial Statements.
|
ENTERGY CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands) | ||||||||||||||||
Net Income
|
$ | 342,670 | $ | 633,069 | $ | 566,513 | $ | 1,207,346 | ||||||||
Other comprehensive income (loss)
|
||||||||||||||||
Cash flow hedges net unrealized loss
|
||||||||||||||||
(net of tax benefit of ($57,231), ($9,041), ($40,012) and ($50,884))
|
(106,138 | ) | (12,598 | ) | (68,793 | ) | (84,321 | ) | ||||||||
Pension and other postretirement liabilities
|
||||||||||||||||
(net of tax expense of $3,643, $1,647, $17,998 and $4,704)
|
6,197 | 2,657 | 29,524 | 9,255 | ||||||||||||
Net unrealized investment gains (losses)
|
||||||||||||||||
(net of tax expense (benefit) of $29,657, ($52,740), $67,046 and ($24,014))
|
38,430 | (53,349 | ) | 70,512 | (25,478 | ) | ||||||||||
Foreign currency translation
|
||||||||||||||||
(net of tax expense of $170, $59, $224 and $226)
|
315 | 109 | 416 | 419 | ||||||||||||
Other comprehensive income (loss)
|
(61,196 | ) | (63,181 | ) | 31,659 | (100,125 | ) | |||||||||
Comprehensive Income
|
281,474 | 569,888 | 598,172 | 1,107,221 | ||||||||||||
Preferred dividend requirements of subsidiaries
|
5,582 | 5,015 | 16,108 | 15,046 | ||||||||||||
Comprehensive Income Attributable to Entergy Corporation
|
$ | 275,892 | $ | 564,873 | $ | 582,064 | $ | 1,092,175 | ||||||||
See Notes to Financial Statements.
|
ENTERGY CORPORATION AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Consolidated net income
|
$ | 566,513 | $ | 1,207,346 | ||||
Adjustments to reconcile consolidated net income to net cash flow
|
||||||||
provided by operating activities:
|
||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
1,293,667 | 1,315,730 | ||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
111,228 | (5,979 | ) | |||||
Asset impairment
|
355,524 | - | ||||||
Changes in working capital:
|
||||||||
Receivables
|
(162,015 | ) | (213,524 | ) | ||||
Fuel inventory
|
(9,063 | ) | 12,677 | |||||
Accounts payable
|
143,596 | (238,879 | ) | |||||
Prepaid taxes and taxes accrued
|
44,625 | 245,242 | ||||||
Interest accrued
|
(24,752 | ) | (53,307 | ) | ||||
Deferred fuel costs
|
(40,192 | ) | (119,481 | ) | ||||
Other working capital accounts
|
(131,374 | ) | (31,319 | ) | ||||
Changes in provisions for estimated losses
|
(17,479 | ) | (4,608 | ) | ||||
Changes in other regulatory assets
|
49,250 | 250,747 | ||||||
Changes in pensions and other postretirement liabilities
|
(75,104 | ) | (275,690 | ) | ||||
Other
|
115,364 | 40,801 | ||||||
Net cash flow provided by operating activities
|
2,219,788 | 2,129,756 | ||||||
INVESTING ACTIVITIES
|
||||||||
Construction/capital expenditures
|
(1,868,690 | ) | (1,460,668 | ) | ||||
Allowance for equity funds used during construction
|
73,497 | 61,096 | ||||||
Nuclear fuel purchases
|
(412,912 | ) | (475,418 | ) | ||||
Payment for purchase of plant
|
(645 | ) | (299,590 | ) | ||||
Proceeds from sale of assets and businesses
|
- | 6,531 | ||||||
Changes in securitization account
|
(2,036 | ) | (443 | ) | ||||
NYPA value sharing payment
|
(72,000 | ) | (72,000 | ) | ||||
Payments to storm reserve escrow account
|
(7,009 | ) | (5,043 | ) | ||||
Receipts from storm reserve escrow account
|
17,884 | - | ||||||
Decrease (increase) in other investments
|
(69,995 | ) | (60,693 | ) | ||||
Litigation proceeds for reimbursement of spent nuclear fuel storage costs
|
109,105 | - | ||||||
Proceeds from nuclear decommissioning trust fund sales
|
1,416,697 | 1,053,089 | ||||||
Investment in nuclear decommissioning trust funds
|
(1,507,123 | ) | (1,142,364 | ) | ||||
Net cash flow used in investing activities
|
(2,323,227 | ) | (2,395,503 | ) | ||||
See Notes to Financial Statements.
|
||||||||
ENTERGY CORPORATION AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of:
|
||||||||
Long-term debt
|
2,289,494 | 1,535,634 | ||||||
Preferred stock
|
51,000 | - | ||||||
Treasury stock
|
56,602 | 32,889 | ||||||
Retirement of long-term debt
|
(2,029,016 | ) | (947,401 | ) | ||||
Repurchase of common stock
|
- | (234,632 | ) | |||||
Changes in credit borrowings - net
|
247,845 | 30,036 | ||||||
Dividends paid:
|
||||||||
Common stock
|
(441,292 | ) | (443,290 | ) | ||||
Preferred stock
|
(15,497 | ) | (15,046 | ) | ||||
Net cash flow provided by (used in) financing activities
|
159,136 | (41,810 | ) | |||||
Effect of exchange rates on cash and cash equivalents
|
(416 | ) | 225 | |||||
Net increase (decrease) in cash and cash equivalents
|
55,281 | (307,332 | ) | |||||
Cash and cash equivalents at beginning of period
|
694,438 | 1,294,472 | ||||||
Cash and cash equivalents at end of period
|
$ | 749,719 | $ | 987,140 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid (received) during the period for:
|
||||||||
Interest - net of amount capitalized
|
$ | 422,142 | $ | 413,525 | ||||
Income taxes
|
$ | 42,472 | $ | (11 | ) | |||
See Notes to Financial Statements.
|
||||||||
ENTERGY CORPORATION AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 96,996 | $ | 81,468 | ||||
Temporary cash investments
|
652,723 | 612,970 | ||||||
Total cash and cash equivalents
|
749,719 | 694,438 | ||||||
Securitization recovery trust account
|
52,340 | 50,304 | ||||||
Accounts receivable:
|
||||||||
Customer
|
693,022 | 568,558 | ||||||
Allowance for doubtful accounts
|
(31,525 | ) | (31,159 | ) | ||||
Other
|
155,039 | 166,186 | ||||||
Accrued unbilled revenues
|
330,744 | 298,283 | ||||||
Total accounts receivable
|
1,147,280 | 1,001,868 | ||||||
Deferred fuel costs
|
92,763 | 209,776 | ||||||
Accumulated deferred income taxes
|
4,533 | 9,856 | ||||||
Fuel inventory - at average cost
|
211,195 | 202,132 | ||||||
Materials and supplies - at average cost
|
925,201 | 894,756 | ||||||
Deferred nuclear refueling outage costs
|
235,344 | 231,031 | ||||||
System agreement cost equalization
|
17,689 | 36,800 | ||||||
Prepayments and other
|
371,686 | 291,742 | ||||||
TOTAL
|
3,807,750 | 3,622,703 | ||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||
Investment in affiliates - at equity
|
47,758 | 44,876 | ||||||
Decommissioning trust funds
|
4,175,825 | 3,788,031 | ||||||
Non-utility property - at cost (less accumulated depreciation)
|
259,525 | 260,436 | ||||||
Other
|
409,025 | 416,423 | ||||||
TOTAL
|
4,892,133 | 4,509,766 | ||||||
PROPERTY, PLANT AND EQUIPMENT
|
||||||||
Electric
|
40,489,162 | 39,385,524 | ||||||
Property under capital lease
|
811,533 | 809,449 | ||||||
Natural gas
|
351,239 | 343,550 | ||||||
Construction work in progress
|
1,965,524 | 1,779,723 | ||||||
Nuclear fuel
|
1,545,263 | 1,546,167 | ||||||
TOTAL PROPERTY, PLANT AND EQUIPMENT
|
45,162,721 | 43,864,413 | ||||||
Less - accumulated depreciation and amortization
|
18,731,190 | 18,255,128 | ||||||
PROPERTY, PLANT AND EQUIPMENT - NET
|
26,431,531 | 25,609,285 | ||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||
Regulatory assets:
|
||||||||
Regulatory asset for income taxes - net
|
730,526 | 799,006 | ||||||
Other regulatory assets (includes securitization property of
|
||||||||
$935,517 as of September 30, 2012 and $1,009,103 as of
|
||||||||
December 31, 2011)
|
4,587,122 | 4,636,871 | ||||||
Deferred fuel costs
|
201,118 | 172,202 | ||||||
Goodwill
|
377,172 | 377,172 | ||||||
Accumulated deferred income taxes
|
30,122 | 19,003 | ||||||
Other
|
966,206 | 955,691 | ||||||
TOTAL
|
6,892,266 | 6,959,945 | ||||||
TOTAL ASSETS
|
$ | 42,023,680 | $ | 40,701,699 | ||||
See Notes to Financial Statements.
|
ENTERGY CORPORATION AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT LIABILITIES
|
||||||||
Currently maturing long-term debt
|
$ | 787,711 | $ | 2,192,733 | ||||
Notes payable
|
356,172 | 108,331 | ||||||
Accounts payable
|
1,362,702 | 1,069,096 | ||||||
Customer deposits
|
361,174 | 351,741 | ||||||
Taxes accrued
|
322,860 | 278,235 | ||||||
Accumulated deferred income taxes
|
73,690 | 99,929 | ||||||
Interest accrued
|
158,761 | 183,512 | ||||||
Deferred fuel costs
|
127,551 | 255,839 | ||||||
Obligations under capital leases
|
3,816 | 3,631 | ||||||
Pension and other postretirement liabilities
|
50,874 | 44,031 | ||||||
System agreement cost equalization
|
55,094 | 80,090 | ||||||
Other
|
263,863 | 283,531 | ||||||
TOTAL
|
3,924,268 | 4,950,699 | ||||||
NON-CURRENT LIABILITIES
|
||||||||
Accumulated deferred income taxes and taxes accrued
|
8,173,216 | 8,096,452 | ||||||
Accumulated deferred investment tax credits
|
276,413 | 284,747 | ||||||
Obligations under capital leases
|
35,531 | 38,421 | ||||||
Other regulatory liabilities
|
965,820 | 728,193 | ||||||
Decommissioning and asset retirement cost liabilities
|
3,456,685 | 3,296,570 | ||||||
Accumulated provisions
|
369,286 | 385,512 | ||||||
Pension and other postretirement liabilities
|
3,051,709 | 3,133,657 | ||||||
Long-term debt (includes securitization bonds of $1,003,081 as of
|
||||||||
September 30, 2012 and $1,070,556 as of December 31, 2011)
|
11,748,153 | 10,043,713 | ||||||
Other
|
551,567 | 501,954 | ||||||
TOTAL
|
28,628,380 | 26,509,219 | ||||||
Commitments and Contingencies
|
||||||||
Subsidiaries' preferred stock without sinking fund
|
186,510 | 186,511 | ||||||
EQUITY
|
||||||||
Common Shareholders' Equity:
|
||||||||
Common stock, $.01 par value, authorized 500,000,000 shares;
|
||||||||
issued 254,752,788 shares in 2012 and in 2011
|
2,548 | 2,548 | ||||||
Paid-in capital
|
5,353,519 | 5,360,682 | ||||||
Retained earnings
|
9,555,859 | 9,446,960 | ||||||
Accumulated other comprehensive loss
|
(136,793 | ) | (168,452 | ) | ||||
Less - treasury stock, at cost (77,080,297 shares in 2012 and
|
||||||||
78,396,988 shares in 2011)
|
5,584,611 | 5,680,468 | ||||||
Total common shareholders' equity
|
9,190,522 | 8,961,270 | ||||||
Subsidiaries' preferred stock without sinking fund
|
94,000 | 94,000 | ||||||
TOTAL
|
9,284,522 | 9,055,270 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 42,023,680 | $ | 40,701,699 | ||||
See Notes to Financial Statements.
|
||||||||
ENTERGY CORPORATION AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||||||||||||||
(Unaudited) (In Thousands)
|
||||||||||||||||||||||||||||
Common Shareholders' Equity
|
||||||||||||||||||||||||||||
Subsidiaries' Preferred Stock
|
Common Stock
|
Treasury Stock
|
Paid-in Capital
|
Retained Earnings
|
Accumulated Other Comprehensive Loss
|
Total
|
||||||||||||||||||||||
Balance at December 31, 2010
|
$ | 94,000 | $ | 2,548 | $ | (5,524,811 | ) | $ | 5,367,474 | $ | 8,689,401 | $ | (38,212 | ) | $ | 8,590,400 | ||||||||||||
Consolidated net income (a)
|
15,046 | - | - | - | 1,192,300 | - | 1,207,346 | |||||||||||||||||||||
Other comprehensive loss
|
- | - | - | - | - | (100,125 | ) | (100,125 | ) | |||||||||||||||||||
Common stock repurchases
|
- | - | (234,632 | ) | - | - | - | (234,632 | ) | |||||||||||||||||||
Common stock issuances related to stock plans
|
- | - | 58,635 | (4,515 | ) | - | - | 54,120 | ||||||||||||||||||||
Common stock dividends declared
|
- | - | - | - | (442,701 | ) | - | (442,701 | ) | |||||||||||||||||||
Preferred dividend requirements of subsidiaries (a)
|
(15,046 | ) | - | - | - | - | - | (15,046 | ) | |||||||||||||||||||
Balance at September 30, 2011
|
$ | 94,000 | $ | 2,548 | $ | (5,700,808 | ) | $ | 5,362,959 | $ | 9,439,000 | $ | (138,337 | ) | $ | 9,059,362 | ||||||||||||
Balance at December 31, 2011
|
$ | 94,000 | $ | 2,548 | $ | (5,680,468 | ) | $ | 5,360,682 | $ | 9,446,960 | $ | (168,452 | ) | $ | 9,055,270 | ||||||||||||
Consolidated net income (a)
|
16,108 | - | - | - | 550,405 | - | 566,513 | |||||||||||||||||||||
Other comprehensive income
|
- | - | - | - | - | 31,659 | 31,659 | |||||||||||||||||||||
Common stock issuances related to stock plans
|
- | - | 95,857 | (7,163 | ) | - | - | 88,694 | ||||||||||||||||||||
Common stock dividends declared
|
- | - | - | - | (441,506 | ) | - | (441,506 | ) | |||||||||||||||||||
Preferred dividend requirements of subsidiaries (a)
|
(16,108 | ) | - | - | - | - | - | (16,108 | ) | |||||||||||||||||||
Balance at September 30, 2012
|
$ | 94,000 | $ | 2,548 | $ | (5,584,611 | ) | $ | 5,353,519 | $ | 9,555,859 | $ | (136,793 | ) | $ | 9,284,522 | ||||||||||||
See Notes to Financial Statements.
|
||||||||||||||||||||||||||||
(a) Consolidated net income and preferred dividend requirements of subsidiaries for 2012 and 2011 include $11.1 million and $10.1 million, respectively, of preferred dividends on subsidiaries' preferred stock without sinking fund that is not presented within equity.
|
ENTERGY CORPORATION AND SUBSIDIARIES
|
||||||||||||||||
SELECTED OPERATING RESULTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012
|
2011
|
(Decrease)
|
%
|
||||||||||||
(Dollars in Millions)
|
||||||||||||||||
Utility Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 1,019 | $ | 1,195 | $ | (176 | ) | (15 | ) | |||||||
Commercial
|
627 | 718 | (91 | ) | (13 | ) | ||||||||||
Industrial
|
536 | 674 | (138 | ) | (20 | ) | ||||||||||
Governmental
|
54 | 59 | (5 | ) | (8 | ) | ||||||||||
Total retail
|
2,236 | 2,646 | (410 | ) | (15 | ) | ||||||||||
Sales for resale
|
45 | 70 | (25 | ) | (36 | ) | ||||||||||
Other
|
39 | 18 | 21 | 117 | ||||||||||||
Total
|
$ | 2,320 | $ | 2,734 | $ | (414 | ) | (15 | ) | |||||||
Utility Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
11,605 | 12,376 | (771 | ) | (6 | ) | ||||||||||
Commercial
|
8,433 | 8,655 | (222 | ) | (3 | ) | ||||||||||
Industrial
|
10,748 | 11,024 | (276 | ) | (3 | ) | ||||||||||
Governmental
|
668 | 689 | (21 | ) | (3 | ) | ||||||||||
Total retail
|
31,454 | 32,744 | (1,290 | ) | (4 | ) | ||||||||||
Sales for resale
|
834 | 1,038 | (204 | ) | (20 | ) | ||||||||||
Total
|
32,288 | 33,782 | (1,494 | ) | (4 | ) | ||||||||||
Entergy Wholesale Commodities:
|
||||||||||||||||
Operating Revenues
|
$ | 627 | $ | 641 | $ | (14 | ) | (2 | ) | |||||||
Billed Electric Energy Sales (GWh)
|
12,002 | 11,255 | 747 | 7 | ||||||||||||
Nine Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012 | 2011 |
(Decrease)
|
%
|
||||||||||||
(Dollars in Millions)
|
||||||||||||||||
Utility Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 2,366 | $ | 2,703 | $ | (337 | ) | (12 | ) | |||||||
Commercial
|
1,653 | 1,794 | (141 | ) | (8 | ) | ||||||||||
Industrial
|
1,531 | 1,742 | (211 | ) | (12 | ) | ||||||||||
Governmental
|
149 | 158 | (9 | ) | (6 | ) | ||||||||||
Total retail
|
5,699 | 6,397 | (698 | ) | (11 | ) | ||||||||||
Sales for resale
|
105 | 198 | (93 | ) | (47 | ) | ||||||||||
Other
|
236 | 217 | 19 | 9 | ||||||||||||
Total
|
$ | 6,040 | $ | 6,812 | $ | (772 | ) | (11 | ) | |||||||
Utility Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
27,305 | 29,411 | (2,106 | ) | (7 | ) | ||||||||||
Commercial
|
21,994 | 22,048 | (54 | ) | - | |||||||||||
Industrial
|
31,114 | 30,681 | 433 | 1 | ||||||||||||
Governmental
|
1,852 | 1,875 | (23 | ) | (1 | ) | ||||||||||
Total retail
|
82,265 | 84,015 | (1,750 | ) | (2 | ) | ||||||||||
Sales for resale
|
2,402 | 3,021 | (619 | ) | (20 | ) | ||||||||||
Total
|
84,667 | 87,036 | (2,369 | ) | (3 | ) | ||||||||||
Entergy Wholesale Commodities:
|
||||||||||||||||
Operating Revenues
|
$ | 1,755 | $ | 1,819 | $ | (64 | ) | (4 | ) | |||||||
Billed Electric Energy Sales (GWh)
|
34,957 | 32,376 | 2,581 | 8 | ||||||||||||
Three Months Ended
September 30, 2011
|
|||
As
previously
reported
|
As
corrected
|
||
(In Thousands)
|
|||
Income Statement
|
|||
Income taxes
|
$38,429
|
$37,205
|
|
Net income
|
$51,946
|
$53,170
|
|
Earnings applicable to common equity
|
$51,740
|
$52,964
|
|
Nine Months Ended
September 30, 2011
|
|||
As
previously
reported
|
As
corrected
|
||
(In Thousands)
|
|||
Income Statement
|
|||
Income taxes
|
$95,352
|
$92,083
|
|
Net income
|
$146,928
|
$150,197
|
|
Earnings applicable to common equity
|
$146,309
|
$149,578
|
|
Statement of Cash Flows
|
|||
Net income
|
$146,928
|
$150,197
|
|
Deferred income taxes, investment tax credits,
and non-current taxes accrued
|
($21,223)
|
($24,492)
|
|
Changes in other regulatory assets
|
$27,171
|
$21,858
|
|
Other operating activities
|
$1,814
|
$7,127
|
December 31, 2011
|
|||
As
previously
reported
|
As
corrected
|
||
(In Thousands)
|
|||
Balance Sheet
|
|||
Regulatory asset for income taxes - net
|
$249,058
|
$173,724
|
|
Accumulated deferred income taxes - current
|
$5,427
|
$5,107
|
|
Accumulated deferred income taxes and taxes accrued
|
$1,397,230
|
$1,368,563
|
|
Member’s equity
|
$1,439,733
|
$1,393,386
|
Nine Months Ended
September 30, 2011
|
|||||||
Member’s Equity
|
Total Equity
|
||||||
As
previously
reported
|
As
corrected
|
As
previously
reported
|
As
corrected
|
||||
(In Thousands)
|
|||||||
Statement of Changes in Equity
|
|||||||
Balance at December 31, 2010
|
$1,539,517
|
$1,494,593
|
$1,509,213
|
$1,464,289
|
|||
Net income
|
$146,928
|
$150,197
|
$146,928
|
$150,197
|
|||
Balance at September 30, 2011
|
$1,403,857
|
$1,362,202
|
$1,375,268
|
$1,333,613
|
Company
|
Hurricane Isaac
Restoration Costs
|
|
(In Millions)
|
||
Entergy Arkansas
|
$10
|
|
Entergy Gulf States Louisiana
|
70-90
|
|
Entergy Louisiana
|
240-300
|
|
Entergy Mississippi
|
30-40
|
|
Entergy New Orleans
|
50-60
|
|
Total
|
$400-500
|
Payments or
(Receipts)
|
|
(In Millions)
|
|
Entergy Arkansas
|
$41
|
Entergy Gulf States Louisiana
|
$-
|
Entergy Louisiana
|
($41)
|
Entergy Mississippi
|
$-
|
Entergy New Orleans
|
$-
|
Entergy Texas
|
$-
|
For the Three Months Ended September 30,
|
||||||||||||
2012
|
2011
|
|||||||||||
(In Millions, Except Per Share Data)
|
||||||||||||
Basic earnings per share
|
Income
|
Shares
|
$/share
|
Income
|
Shares
|
$/share
|
||||||
Net income attributable to
Entergy Corporation
|
$337.1
|
177.5
|
$1.90
|
$628.1
|
177.0
|
$3.55
|
||||||
Average dilutive effect of:
|
||||||||||||
Stock options
|
0.4
|
(0.01)
|
0.7
|
(0.02)
|
||||||||
Other equity plans
|
|
0.1
|
-
|
|
-
|
-
|
||||||
Diluted earnings per share
|
$337.1
|
178.0
|
$1.89
|
$628.1
|
177.7
|
$3.53
|
For the Nine Months Ended September 30,
|
||||||||||||
2012
|
2011
|
|||||||||||
(In Millions, Except Per Share Data)
|
||||||||||||
Basic earnings per share
|
Income
|
Shares
|
$/share
|
Income
|
Shares
|
$/share
|
||||||
Net income attributable to
Entergy Corporation
|
$550.4
|
177.2
|
$3.11
|
$1,192.3
|
177.9
|
$6.70
|
||||||
Average dilutive effect of:
|
||||||||||||
Stock options
|
|
0.3
|
(0.01)
|
|
0.9
|
(0.03)
|
||||||
Other equity plans
|
|
0.1
|
-
|
|
-
|
-
|
||||||
Diluted earnings per share
|
$550.4
|
177.6
|
$3.10
|
$1,192.3
|
178.8
|
$6.67
|
Entergy
|
Entergy
Gulf States Louisiana
|
Entergy
Louisiana
|
||||||||||
September 30,
2012
|
December 31,
2011
|
September 30,
2012
|
December 31,
2011
|
September 30,
2012
|
December 31,
2011
|
|||||||
(In Thousands)
|
||||||||||||
Cash flow hedges net
unrealized gain
|
$108,704
|
$177,497
|
$-
|
$-
|
$-
|
$-
|
||||||
Pension and other
postretirement liabilities
|
(470,032)
|
(499,556)
|
(57,213)
|
(69,610)
|
(37,617)
|
(39,507)
|
||||||
Net unrealized investment
gains
|
221,450
|
150,939
|
-
|
-
|
-
|
-
|
||||||
Foreign currency translation
|
3,085
|
2,668
|
-
|
-
|
-
|
-
|
||||||
Total
|
($136,793)
|
($168,452)
|
($57,213)
|
($69,610)
|
($37,617)
|
($39,507)
|
Capacity
|
Borrowings
|
Letters
of Credit
|
Capacity
Available
|
|||
(In Millions)
|
||||||
$3,500
|
$1,315
|
$8
|
$2,177
|
Company
|
Expiration Date |
Amount of
Facility
|
Interest Rate (a)
|
Amount Drawn
as of
September 30,
2012
|
||||
Entergy Arkansas
|
April 2013
|
$20 million (b)
|
1.86%
|
-
|
||||
Entergy Arkansas
|
March 2017
|
$150 million (c)
|
1.72%
|
-
|
||||
Entergy Gulf States Louisiana
|
March 2017
|
$150 million (d)
|
1.72%
|
-
|
||||
Entergy Louisiana
|
March 2017
|
$200 million (e)
|
1.72%
|
-
|
||||
Entergy Mississippi
|
May 2013
|
$35 million (f)
|
1.97%
|
-
|
||||
Entergy Mississippi
|
May 2013
|
$25 million (f)
|
1.97%
|
-
|
||||
Entergy Mississippi
|
May 2013
|
$10 million (f)
|
1.97%
|
-
|
||||
Entergy Texas
|
March 2017
|
$150 million (g)
|
1.97%
|
-
|
(a)
|
The interest rate is the rate as of September 30, 2012 that would be applied to outstanding borrowings under the facility.
|
(b)
|
The credit facility requires Entergy Arkansas to maintain a debt ratio of 65% or less of its total capitalization. Borrowings under the Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable.
|
(c)
|
The credit facility allows Entergy Arkansas to issue letters of credit against 50% of the borrowing capacity of the facility. As of September 30, 2012, no letters of credit were outstanding. The credit facility requires Entergy Arkansas to maintain a consolidated debt ratio of 65% or less of its total capitalization.
|
(d)
|
The credit facility allows Entergy Gulf States Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility. As of September 30, 2012, no letters of credit were outstanding. The credit facility requires Entergy Gulf States Louisiana to maintain a consolidated debt ratio of 65% or less of its total capitalization.
|
(e)
|
The credit facility allows Entergy Louisiana to issue letters of credit against 50% of the borrowing capacity of the facility. As of September 30, 2012, no letters of credit were outstanding. The credit facility requires Entergy Louisiana to maintain a consolidated debt ratio of 65% or less of its total capitalization.
|
(f)
|
Borrowings under the Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable. Entergy Mississippi is required to maintain a consolidated debt ratio of 65% or less of its total capitalization.
|
(g)
|
The credit facility allows Entergy Texas to issue letters of credit against 50% of the borrowing capacity of the facility. As of September 30, 2012, no letters of credit were outstanding. The credit facility requires Entergy Texas to maintain a consolidated debt ratio of 65% or less of its total capitalization.
|
Authorized
|
Borrowings
|
|||
(In Millions)
|
||||
Entergy Arkansas
|
$250
|
-
|
||
Entergy Gulf States Louisiana
|
$200
|
-
|
||
Entergy Louisiana
|
$250
|
-
|
||
Entergy Mississippi
|
$175
|
-
|
||
Entergy New Orleans
|
$100
|
$16
|
||
Entergy Texas
|
$200
|
-
|
||
System Energy
|
$200
|
-
|
Company
|
Expiration
Date
|
Amount
of
Facility
|
Weighted
Average
Interest
Rate on
Borrowings
(a)
|
Amount
Outstanding
as of
September 30,
2012
|
||||
(Dollars in Millions)
|
||||||||
Entergy Arkansas VIE
|
July 2013
|
$85
|
2.30%
|
$52.7
|
||||
Entergy Gulf States Louisiana VIE
|
July 2013
|
$85
|
n/a
|
$-
|
||||
Entergy Louisiana VIE
|
July 2013
|
$90
|
2.32%
|
$56.5
|
||||
System Energy VIE
|
July 2013
|
$100
|
2.36%
|
$62.8
|
(a)
|
Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company variable interest entities for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company variable interest entity for Entergy Gulf States Louisiana does not issue commercial paper, but borrows directly on its bank credit facility.
|
Company
|
Description
|
Amount
|
||
Entergy Arkansas VIE
|
9% Series H due June 2013
|
$30 million
|
||
Entergy Arkansas VIE
|
5.69% Series I due July 2014
|
$70 million
|
||
Entergy Arkansas VIE
|
3.23% Series J due July 2016
|
$55 million
|
||
Entergy Gulf States Louisiana VIE
|
5.56% Series N due May 2013
|
$75 million
|
||
Entergy Gulf States Louisiana VIE
|
3.25% Series Q due July 2017
|
$75 million
|
||
Entergy Louisiana VIE
|
5.69% Series E due July 2014
|
$50 million
|
||
Entergy Louisiana VIE
|
3.30% Series F due March 2016
|
$20 million
|
||
Entergy Louisiana VIE
|
3.25% Series G due July 2017
|
$25 million
|
||
System Energy VIE
|
6.29% Series F due September 2013
|
$70 million
|
||
System Energy VIE
|
5.33% Series G due April 2015
|
$60 million
|
||
System Energy VIE
|
4.02% Series H due February 2017
|
$50 million
|
Book Value
of Long-Term Debt
|
Fair Value
of Long-Term Debt (a) (b)
|
|||
(In Thousands)
|
||||
Entergy
|
$12,535,864
|
$12,946,166
|
||
Entergy Arkansas
|
$1,870,076
|
$1,776,893
|
||
Entergy Gulf States Louisiana
|
$1,517,369
|
$1,670,740
|
||
Entergy Louisiana
|
$2,639,714
|
$2,781,584
|
||
Entergy Mississippi
|
$920,484
|
$998,493
|
||
Entergy New Orleans
|
$166,322
|
$172,182
|
||
Entergy Texas
|
$1,628,270
|
$1,887,539
|
||
System Energy
|
$853,771
|
$735,626
|
(a)
|
The values exclude lease obligations of $163 million at Entergy Louisiana and $139 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $126 million at Entergy, and include debt due within one year.
|
(b)
|
Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
|
Book Value
of Long-Term Debt
|
Fair Value
of Long-Term Debt (a) (b)
|
|||
(In Thousands)
|
||||
Entergy
|
$12,236,446
|
$12,176,251
|
||
Entergy Arkansas
|
$1,875,921
|
$1,756,361
|
||
Entergy Gulf States Louisiana
|
$1,542,430
|
$1,642,388
|
||
Entergy Louisiana
|
$2,252,312
|
$2,211,355
|
||
Entergy Mississippi
|
$920,439
|
$985,600
|
||
Entergy New Orleans
|
$166,537
|
$169,270
|
||
Entergy Texas
|
$1,677,127
|
$1,906,081
|
||
System Energy
|
$747,048
|
$582,952
|
(a)
|
The values exclude lease obligations of $188 million at Entergy Louisiana and $179 million at System Energy, long-term DOE obligations of $181 million at Entergy Arkansas, and the note payable to NYPA of $133 million at Entergy, and include debt due within one year.
|
(b)
|
Fair values are classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades.
|
2012
|
2011
|
||
(In Millions)
|
|||
Compensation expense included in Entergy’s net income
|
$1.9
|
$2.5
|
|
Tax benefit recognized in Entergy’s net income
|
$0.7
|
$0.9
|
|
Compensation cost capitalized as part of fixed assets and inventory
|
$0.3
|
$0.5
|
2012
|
2011
|
||
(In Millions)
|
|||
Compensation expense included in Entergy’s net income
|
$5.8
|
$8.0
|
|
Tax benefit recognized in Entergy’s net income
|
$2.2
|
$3.1
|
|
Compensation cost capitalized as part of fixed assets and inventory
|
$1.1
|
$1.5
|
2012
|
2011
|
||
(In Millions)
|
|||
Compensation expense included in Entergy’s net income
|
$3.7
|
$1.0
|
|
Tax benefit recognized in Entergy’s net income
|
$1.4
|
$0.4
|
|
Compensation cost capitalized as part of fixed assets and inventory
|
$0.6
|
$0.2
|
2012
|
2011
|
||
(In Millions)
|
|||
Compensation expense included in Entergy’s net income
|
$11.0
|
$2.9
|
|
Tax benefit recognized in Entergy’s net income
|
$4.2
|
$1.1
|
|
Compensation cost capitalized as part of fixed assets and inventory
|
$1.9
|
$0.5
|
2012
|
2011
|
|||
(In Thousands)
|
||||
Service cost - benefits earned during the period
|
$37,691
|
$30,490
|
||
Interest cost on projected benefit obligation
|
65,232
|
59,248
|
||
Expected return on assets
|
(79,356)
|
(75,319)
|
||
Amortization of prior service cost
|
683
|
838
|
||
Amortization of loss
|
41,820
|
23,244
|
||
Net pension costs
|
$66,070
|
$38,501
|
2012
|
2011
|
|||
(In Thousands)
|
||||
Service cost - benefits earned during the period
|
$113,073
|
$91,470
|
||
Interest cost on projected benefit obligation
|
195,696
|
177,744
|
||
Expected return on assets
|
(238,068)
|
(225,957)
|
||
Amortization of prior service cost
|
2,049
|
2,514
|
||
Amortization of loss
|
125,460
|
69,732
|
||
Net pension costs
|
$198,210
|
$115,503
|
2012
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
|||||||
(In Thousands)
|
||||||||||||||
Service cost - benefits earned
|
||||||||||||||
during the period
|
$5,542
|
$3,068
|
$3,669
|
$1,602
|
$706
|
$1,421
|
$1,480
|
|||||||
Interest cost on projected
|
||||||||||||||
benefit obligation
|
13,922
|
6,420
|
8,800
|
4,070
|
1,902
|
4,206
|
3,247
|
|||||||
Expected return on assets
|
(16,441)
|
(8,593)
|
(10,209)
|
(5,236)
|
(2,215)
|
(5,581)
|
(4,109)
|
|||||||
Amortization of prior service
|
||||||||||||||
cost
|
50
|
5
|
52
|
7
|
2
|
4
|
3
|
|||||||
Amortization of loss
|
10,193
|
4,043
|
7,050
|
2,633
|
1,719
|
2,544
|
2,251
|
|||||||
Net pension cost
|
$13,266
|
$4,943
|
$9,362
|
$3,076
|
$2,114
|
$2,594
|
$2,872
|
2011
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
|||||||
(In Thousands)
|
||||||||||||||
Service cost - benefits earned
|
||||||||||||||
during the period
|
$4,518
|
$2,462
|
$2,886
|
$1,327
|
$561
|
$1,197
|
$1,235
|
|||||||
Interest cost on projected
|
||||||||||||||
benefit obligation
|
12,991
|
5,928
|
8,159
|
3,909
|
1,762
|
3,993
|
2,939
|
|||||||
Expected return on assets
|
(15,609)
|
(8,339)
|
(9,716)
|
(5,038)
|
(2,114)
|
(5,501)
|
(3,784)
|
|||||||
Amortization of prior service
|
||||||||||||||
cost
|
115
|
20
|
70
|
38
|
9
|
16
|
4
|
|||||||
Amortization of loss
|
6,421
|
2,279
|
4,497
|
1,680
|
1,166
|
1,394
|
1,321
|
|||||||
Net pension cost
|
$8,436
|
$2,350
|
$5,896
|
$1,916
|
$1,384
|
$1,099
|
$1,715
|
2012
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
|||||||
(In Thousands)
|
||||||||||||||
Service cost - benefits earned
|
||||||||||||||
during the period
|
$16,626
|
$9,204
|
$11,007
|
$4,806
|
$2,118
|
$4,263
|
$4,440
|
|||||||
Interest cost on projected
|
||||||||||||||
benefit obligation
|
41,766
|
19,260
|
26,400
|
12,210
|
5,706
|
12,618
|
9,741
|
|||||||
Expected return on assets
|
(49,323)
|
(25,779)
|
(30,627)
|
(15,708)
|
(6,645)
|
(16,743)
|
(12,327)
|
|||||||
Amortization of prior service
|
||||||||||||||
cost
|
150
|
15
|
156
|
21
|
6
|
12
|
9
|
|||||||
Amortization of loss
|
30,579
|
12,129
|
21,150
|
7,899
|
5,157
|
7,632
|
6,753
|
|||||||
Net pension cost
|
$39,798
|
$14,829
|
$28,086
|
$9,228
|
$6,342
|
$7,782
|
$8,616
|
2011
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
|||||||
(In Thousands)
|
||||||||||||||
Service cost - benefits earned
|
||||||||||||||
during the period
|
$13,554
|
$7,386
|
$8,658
|
$3,981
|
$1,683
|
$3,591
|
$3,705
|
|||||||
Interest cost on projected
|
||||||||||||||
benefit obligation
|
38,973
|
17,784
|
24,477
|
11,727
|
5,286
|
11,979
|
8,817
|
|||||||
Expected return on assets
|
(46,827)
|
(25,017)
|
(29,148)
|
(15,114)
|
(6,342)
|
(16,503)
|
(11,352)
|
|||||||
Amortization of prior service
|
||||||||||||||
cost
|
345
|
60
|
210
|
114
|
27
|
48
|
12
|
|||||||
Amortization of loss
|
19,263
|
6,837
|
13,491
|
5,040
|
3,498
|
4,182
|
3,963
|
|||||||
Net pension cost
|
$25,308
|
$7,050
|
$17,688
|
$5,748
|
$4,152
|
$3,297
|
$5,145
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
|||||||
(In Thousands)
|
||||||||||||
Non-qualified pension cost
third quarter 2012
|
$107
|
$39
|
$3
|
$46
|
$19
|
$163
|
||||||
Non-qualified pension cost
third quarter 2011
|
$115
|
$42
|
$4
|
$48
|
$16
|
$192
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
|||||||
(In Thousands)
|
||||||||||||
Non-qualified pension cost
nine months ended
September 30, 2012
|
$321
|
$117
|
$9
|
$138
|
$57
|
$489
|
||||||
Non-qualified pension cost
nine months ended
September 30, 2011
|
$345
|
$126
|
$12
|
$144
|
$48
|
$576
|
2012
|
2011
|
|||
(In Thousands)
|
||||
Service cost - benefits earned during the period
|
$17,221
|
$14,835
|
||
Interest cost on accumulated postretirement benefit
obligation (APBO)
|
20,640
|
18,631
|
||
Expected return on assets
|
(8,626)
|
(7,369)
|
||
Amortization of transition obligation
|
794
|
796
|
||
Amortization of prior service cost
|
(4,541)
|
(3,518)
|
||
Amortization of loss
|
9,113
|
5,298
|
||
Net other postretirement benefit cost
|
$34,601
|
$28,673
|
2012
|
2011
|
|||
(In Thousands)
|
||||
Service cost - benefits earned during the period
|
$51,663
|
$44,505
|
||
Interest cost on APBO
|
61,920
|
55,893
|
||
Expected return on assets
|
(25,878)
|
(22,107)
|
||
Amortization of transition obligation
|
2,382
|
2,388
|
||
Amortization of prior service cost
|
(13,623)
|
(10,554)
|
||
Amortization of loss
|
27,339
|
15,894
|
||
Net other postretirement benefit cost
|
$103,803
|
$86,019
|
2012
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
|||||||
(In Thousands)
|
||||||||||||||
Service cost - benefits earned
|
||||||||||||||
during the period
|
$2,272
|
$1,880
|
$1,949
|
$773
|
$422
|
$913
|
$823
|
|||||||
Interest cost on APBO
|
3,613
|
2,398
|
2,445
|
1,179
|
856
|
1,663
|
757
|
|||||||
Expected return on assets
|
(3,507)
|
-
|
-
|
(1,130)
|
(928)
|
(2,104)
|
(650)
|
|||||||
Amortization of transition
|
||||||||||||||
obligation
|
205
|
60
|
96
|
88
|
297
|
47
|
2
|
|||||||
Amortization of prior service
|
||||||||||||||
cost
|
(133)
|
(206)
|
(62)
|
(35)
|
10
|
(107)
|
(16)
|
|||||||
Amortization of loss
|
2,077
|
1,184
|
1,090
|
730
|
390
|
1,079
|
493
|
|||||||
Net other postretirement
|
||||||||||||||
benefit cost
|
$4,527
|
$5,316
|
$5,518
|
$1,605
|
$1,047
|
$1,491
|
$1,409
|
2011
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
|||||||
(In Thousands)
|
||||||||||||||
Service cost - benefits earned
|
||||||||||||||
during the period
|
$2,013
|
$1,540
|
$1,635
|
$658
|
$362
|
$769
|
$661
|
|||||||
Interest cost on APBO
|
3,436
|
2,075
|
2,192
|
1,093
|
806
|
1,486
|
667
|
|||||||
Expected return on assets
|
(2,882)
|
-
|
-
|
(977)
|
(800)
|
(1,874)
|
(529)
|
|||||||
Amortization of transition
|
||||||||||||||
obligation
|
205
|
60
|
96
|
88
|
298
|
47
|
2
|
|||||||
Amortization of prior service
|
||||||||||||||
cost
|
(133)
|
(206)
|
(62)
|
(35)
|
10
|
(107)
|
(147)
|
|||||||
Amortization of loss
|
1,610
|
723
|
698
|
540
|
241
|
700
|
369
|
|||||||
Net other postretirement
|
||||||||||||||
benefit cost
|
$4,249
|
$4,192
|
$4,559
|
$1,367
|
$917
|
$1,021
|
$1,023
|
2012
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
|||||||
(In Thousands)
|
||||||||||||||
Service cost - benefits earned
|
||||||||||||||
during the period
|
$6,816
|
$5,640
|
$5,847
|
$2,319
|
$1,266
|
$2,739
|
$2,469
|
|||||||
Interest cost on APBO
|
10,839
|
7,194
|
7,335
|
3,537
|
2,568
|
4,989
|
2,271
|
|||||||
Expected return on assets
|
(10,521)
|
-
|
-
|
(3,390)
|
(2,784)
|
(6,312)
|
(1,950)
|
|||||||
Amortization of transition
|
||||||||||||||
obligation
|
615
|
180
|
288
|
264
|
891
|
141
|
6
|
|||||||
Amortization of prior service
|
||||||||||||||
cost
|
(399)
|
(618)
|
(186)
|
(105)
|
30
|
(321)
|
(48)
|
|||||||
Amortization of loss
|
6,231
|
3,552
|
3,270
|
2,190
|
1,170
|
3,237
|
1,479
|
|||||||
Net other postretirement
|
||||||||||||||
benefit cost
|
$13,581
|
$15,948
|
$16,554
|
$4,815
|
$3,141
|
$4,473
|
$4,227
|
2011
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
|||||||
(In Thousands)
|
||||||||||||||
Service cost - benefits earned
|
||||||||||||||
during the period
|
$6,039
|
$4,620
|
$4,905
|
$1,974
|
$1,086
|
$2,307
|
$1,983
|
|||||||
Interest cost on APBO
|
10,308
|
6,225
|
6,576
|
3,279
|
2,418
|
4,458
|
2,001
|
|||||||
Expected return on assets
|
(8,646)
|
-
|
-
|
(2,931)
|
(2,400)
|
(5,622)
|
(1,587)
|
|||||||
Amortization of transition
|
||||||||||||||
obligation
|
615
|
180
|
288
|
264
|
894
|
141
|
6
|
|||||||
Amortization of prior service
|
||||||||||||||
cost
|
(399)
|
(618)
|
(186)
|
(105)
|
30
|
(321)
|
(441)
|
|||||||
Amortization of loss
|
4,830
|
2,169
|
2,094
|
1,620
|
723
|
2,100
|
1,107
|
|||||||
Net other postretirement
|
||||||||||||||
benefit cost
|
$12,747
|
$12,576
|
$13,677
|
$4,101
|
$2,751
|
$3,063
|
$3,069
|
Entergy
Arkansas
|
Entergy
Gulf States
Louisiana
|
Entergy
Louisiana
|
Entergy
Mississippi
|
Entergy
New Orleans
|
Entergy
Texas
|
System
Energy
|
||||||||
(In Thousands)
|
||||||||||||||
Expected 2012 pension
contributions
|
$37,163
|
$13,569
|
$28,816
|
$9,665
|
$5,811
|
$9,091
|
$9,771
|
|||||||
Pension contributions made
through September 2012
|
$37,163
|
$13,569
|
$28,816
|
$9,665
|
$5,811
|
$9,091
|
$9,771
|
|||||||
Remaining estimated pension
contributions to be made in 2012
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
Utility
|
Entergy
Wholesale
Commodities*
|
All Other
|
Eliminations
|
Entergy
|
|||||
(In Thousands)
|
|||||||||
2012
|
|||||||||
Operating revenues
|
$2,344,885
|
$626,849
|
$1,060
|
($9,234)
|
$2,963,560
|
||||
Income taxes
|
$187,668
|
$34,153
|
$10,682
|
$-
|
$232,503
|
||||
Consolidated net income (loss)
|
$300,506
|
$118,766
|
($50,207)
|
($26,395)
|
$342,670
|
||||
2011
|
|||||||||
Operating revenues
|
$2,760,631
|
$641,216
|
$1,015
|
($7,309)
|
$3,395,553
|
||||
Income taxes
|
($158,673)
|
$64,079
|
($24,537)
|
$-
|
($119,131)
|
||||
Consolidated net income
|
$528,459
|
$130,862
|
$1,393
|
($27,645)
|
$633,069
|
Utility
|
Entergy
Wholesale
Commodities*
|
All Other
|
Eliminations
|
Consolidated
|
|||||
(In Thousands)
|
|||||||||
2012
|
|||||||||
Operating revenues
|
$6,136,101
|
$1,754,774
|
$3,027
|
($28,082)
|
$7,865,820
|
||||
Income taxes
|
$162,914
|
($10,036)
|
($42,738)
|
$-
|
$110,140
|
||||
Consolidated net income (loss)
|
$676,244
|
$31,570
|
($61,477)
|
($79,824)
|
$566,513
|
||||
2011
|
|||||||||
Operating revenues
|
$6,939,724
|
$1,819,439
|
$3,153
|
($22,275)
|
$8,740,041
|
||||
Income taxes
|
$70,567
|
$213,344
|
($87,839)
|
$-
|
$196,072
|
||||
Consolidated net income
|
$949,854
|
$319,651
|
$20,776
|
($82,935)
|
$1,207,346
|
Type of Risk
|
Affected Businesses
|
|
Power price risk
|
Utility, Entergy Wholesale Commodities
|
|
Fuel price risk
|
Utility, Entergy Wholesale Commodities
|
|
Equity price and interest rate risk - investments
|
Utility, Entergy Wholesale Commodities
|
Instrument
|
Balance Sheet Location
|
Fair Value (a)
|
Offset (a)
|
Business
|
||||
Derivatives designated as hedging instruments
|
||||||||
Assets:
|
||||||||
Electricity swaps and options
|
Prepayments and other (current portion)
|
$140 million
|
($9) million
|
Entergy Wholesale Commodities
|
||||
Electricity swaps and options
|
Other deferred debits and other assets (non-current portion)
|
$69 million
|
($13) million
|
Entergy Wholesale Commodities
|
||||
Liabilities:
|
||||||||
Electricity swaps and options
|
Other non-current liabilities (non-current portion)
|
$12 million
|
($10) million
|
Entergy Wholesale Commodities
|
||||
Derivatives not designated as hedging instruments
|
||||||||
Assets:
|
||||||||
Electricity swaps and options
|
Prepayments and other (current portion)
|
$25 million
|
($2) million
|
Entergy Wholesale Commodities
|
||||
Electricity swaps and options
|
Other deferred debits and other assets (non-current portion)
|
$23 million
|
($11) million
|
Entergy Wholesale Commodities
|
||||
Natural gas swaps
|
Prepayments and other (current portion)
|
$10 million
|
($-)
|
Utility
|
||||
Liabilities:
|
||||||||
Electricity swaps and options
|
Other current liabilities (current portion)
|
$11 million
|
($11) million
|
Entergy Wholesale Commodities
|
||||
Electricity swaps and options
|
Other non-current liabilities (non-current portion)
|
$15 million
|
($13) million
|
Entergy Wholesale Commodities
|
Instrument
|
Balance Sheet Location
|
Fair Value (a)
|
Offset (a)
|
Business
|
||||
Derivatives designated as hedging instruments
|
||||||||
Assets:
|
||||||||
Electricity swaps and options
|
Prepayments and other (current portion)
|
$197 million
|
($25) million
|
Entergy Wholesale Commodities
|
||||
Electricity swaps and options
|
Other deferred debits and other assets (non-current portion)
|
$112 million
|
($1) million
|
Entergy Wholesale Commodities
|
||||
Liabilities:
|
||||||||
Electricity swaps and options
|
Other non-current liabilities (non-current portion)
|
$1 million
|
($1) million
|
Entergy Wholesale Commodities
|
Derivatives not designated as hedging instruments
|
||||||||
Assets:
|
||||||||
Electricity swaps and options
|
Prepayments and other (current portion)
|
$37 million
|
($8) million
|
Entergy Wholesale Commodities
|
||||
Liabilities:
|
||||||||
Electricity swaps and options
|
Other current liabilities (current portion)
|
$33 million
|
($33) million
|
Entergy Wholesale Commodities
|
||||
Natural gas swaps
|
Other current liabilities
|
$30 million
|
($-)
|
Utility
|
(a)
|
The balances of derivative assets and liabilities in these tables are presented gross. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented on the Entergy Consolidated Balance Sheets on a net basis in accordance with accounting guidance for Derivatives and Hedging.
|
Instrument
|
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion)
|
Income Statement location
|
Amount of gain
reclassified from
AOCI into
income (effective portion)
|
|||
2012
|
||||||
Electricity swaps and options
|
($108) million
|
Competitive businesses operating revenues
|
$61 million
|
|||
2011
|
||||||
Electricity swaps and options
|
$40 million
|
Competitive businesses operating revenues
|
$48 million
|
Instrument
|
Amount of gain (loss)
recognized in other
comprehensive income
(effective portion)
|
Income Statement location
|
Amount of gain
reclassified from
AOCI into
income (effective portion)
|
|||
2012
|
||||||
Electricity swaps and options
|
$120 million
|
Competitive businesses operating revenues
|
$232 million
|
|||
2011
|
||||||
Electricity swaps and options
|
($14) million
|
Competitive businesses operating revenues
|
$109 million
|
Instrument
|
Amount of gain (loss)
recognized in AOCI
|
Income Statement
location
|
Amount of gain (loss)
recorded in income
|
|||
2012
|
||||||
Natural gas swaps
|
$-
|
Fuel, fuel-related expenses, and gas purchased for resale
|
$7 million
|
|||
Electricity swaps and options de-designated as hedged items
|
$3 million
|
Competitive business operating revenues
|
($2) million
|
|||
2011
|
||||||
Natural gas swaps
|
$-
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($19) million
|
|||
Electricity swaps and options de-designated as hedged items
|
($2) million
|
Competitive business operating revenues
|
$2 million
|
Instrument
|
Amount of gain
recognized in AOCI
|
Income Statement
location
|
Amount of gain (loss)
recorded in income
|
|||
2012
|
||||||
Natural gas swaps
|
$-
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($28) million
|
|||
Electricity swaps and options de-designated as hedged items
|
$2 million
|
Competitive business operating revenues
|
($1) million
|
|||
2011
|
||||||
Natural gas swaps
|
$-
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($31) million
|
|||
Electricity swaps and options de-designated as hedged items
|
$4 million
|
Competitive business operating revenues
|
$8 million
|
Instrument
|
Balance Sheet Location
|
Fair Value
|
Registrant
|
|||
Derivatives not designated as hedging instruments
|
||||||
Assets:
|
||||||
Natural gas swaps
|
Gas hedge contracts
|
$3.0 million
|
Entergy Gulf States Louisiana
|
|||
Natural gas swaps
|
Prepayments and other
|
$4.8 million
|
Entergy Louisiana
|
|||
Natural gas swaps
|
Prepayments and other
|
$2.3 million
|
Entergy Mississippi
|
Instrument
|
Balance Sheet Location
|
Fair Value
|
Registrant
|
|||
Derivatives not designated as hedging instruments
|
||||||
Liabilities:
|
||||||
Natural gas swaps
|
Gas hedge contracts
|
$8.6 million
|
Entergy Gulf States Louisiana
|
|||
Natural gas swaps
|
Gas hedge contracts
|
$12.4 million
|
Entergy Louisiana
|
|||
Natural gas swaps
|
Other current liabilities
|
$7.8 million
|
Entergy Mississippi
|
|||
Natural gas swaps
|
Other current liabilities
|
$1.5 million
|
Entergy New Orleans
|
Instrument
|
Statement of Income Location
|
Amount of gain
(loss) recorded
in income
|
Registrant
|
|||
2012
|
||||||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
$2.0 million
|
Entergy Gulf States Louisiana
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
$3.8 million
|
Entergy Louisiana
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
$1.4 million
|
Entergy Mississippi
|
|||
2011
|
||||||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($5.0) million
|
Entergy Gulf States Louisiana
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($7.5) million
|
Entergy Louisiana
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($4.4) million
|
Entergy Mississippi
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($1.1) million
|
Entergy New Orleans
|
Instrument
|
Statement of Income Location
|
Amount of loss
recorded
in income
|
Registrant
|
|||
2012
|
||||||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($8.3) million
|
Entergy Gulf States Louisiana
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($10.4) million
|
Entergy Louisiana
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($7.5) million
|
Entergy Mississippi
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($1.5) million
|
Entergy New Orleans
|
|||
2011
|
||||||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($9.2) million
|
Entergy Gulf States Louisiana
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($12.5) million
|
Entergy Louisiana
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($6.9) million
|
Entergy Mississippi
|
|||
Natural gas swaps
|
Fuel, fuel-related expenses, and gas purchased for resale
|
($2.0) million
|
Entergy New Orleans
|
·
|
Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents, debt instruments, and gas hedge contracts.
|
·
|
Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following:
|
-
|
quoted prices for similar assets or liabilities in active markets;
|
-
|
quoted prices for identical assets or liabilities in inactive markets;
|
-
|
inputs other than quoted prices that are observable for the asset or liability; or
|
-
|
inputs that are derived principally from or corroborated by observable market data by correlation or other means.
|
·
|
Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of derivative power contracts used as cash flow hedges of power sales at merchant power plants.
|
2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$653
|
$-
|
$-
|
$653
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
421
|
2,032
|
-
|
2,453
|
||||
Debt securities
|
707
|
1,016
|
-
|
1,723
|
||||
Power contracts
|
-
|
-
|
218
|
218
|
||||
Securitization recovery trust account
|
52
|
-
|
-
|
52
|
||||
Storm reserve escrow account
|
324
|
-
|
-
|
324
|
||||
Gas hedge contracts
|
10
|
-
|
-
|
10
|
||||
$2,167
|
$3,048
|
$218
|
$5,433
|
2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$613
|
$-
|
$-
|
$613
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
397
|
1,732
|
-
|
2,129
|
||||
Debt securities
|
639
|
1,020
|
-
|
1,659
|
||||
Power contracts
|
-
|
-
|
312
|
312
|
||||
Securitization recovery trust account
|
50
|
-
|
-
|
50
|
||||
Storm reserve escrow account
|
335
|
-
|
-
|
335
|
||||
$2,034
|
$2,752
|
$312
|
$5,098
|
|||||
Liabilities:
|
||||||||
Gas hedge contracts
|
$30
|
$-
|
$-
|
$30
|
(a)
|
The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indexes. Fixed income securities are held in various governmental and corporate securities. See Note 9 for additional information on the investment portfolios.
|
2012
|
2011
|
|||
(In Millions)
|
||||
Balance as of beginning of period,
|
$375
|
$98
|
||
Unrealized gains/(losses) from price changes
|
(96)
|
3
|
||
Unrealized gains on originations
|
-
|
17
|
||
Realized gains on settlements
|
(61)
|
(48)
|
||
Balance as of September 30,
|
$218
|
$70
|
2012
|
2011
|
|||
(In Millions)
|
||||
Balance as of January 1,
|
$312
|
$197
|
||
Unrealized gains/(losses) from price changes
|
131
|
(33)
|
||
Unrealized gains on originations
|
7
|
15
|
||
Realized gains on settlements
|
(232)
|
(109)
|
||
Balance as of September 30,
|
$218
|
$70
|
Transaction Type
|
Fair Value
as of
September 30,
2012 |
Significant
Unobservable Inputs
|
Range
from
Average
%
|
Effect on
Fair Value
|
||||
Electricity swaps
|
$140 million
|
Unit contingent discount
|
+/-3%
|
$7 million
|
||||
Electricity options
|
$78 million
|
Implied volatility
|
+/-9%
|
$39 million
|
Significant
Unobservable
Input
|
Transaction Type
|
Position
|
Change to Input
|
Effect on
Fair Value
|
||||
Unit contingent
discount
|
Electricity swaps
|
Sell
|
Increase (Decrease)
|
Decrease (Increase)
|
||||
Implied volatility
|
Electricity options
|
Sell
|
Increase (Decrease)
|
Increase (Decrease)
|
||||
Implied volatility
|
Electricity options
|
Buy
|
Increase (Decrease)
|
Increase (Decrease)
|
2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$36.2
|
$-
|
$-
|
$36.2
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
5.0
|
373.8
|
-
|
378.8
|
||||
Debt securities
|
95.6
|
125.5
|
-
|
221.1
|
||||
Securitization recovery trust account
|
8.4
|
-
|
-
|
8.4
|
||||
$145.2
|
$499.3
|
$-
|
$644.5
|
2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$17.9
|
$-
|
$-
|
$17.9
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
6.3
|
323.1
|
-
|
329.4
|
||||
Debt securities
|
82.8
|
129.5
|
-
|
212.3
|
||||
Securitization recovery trust account
|
3.9
|
-
|
-
|
3.9
|
||||
$110.9
|
$452.6
|
$-
|
$563.5
|
2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$156.3
|
$-
|
$-
|
$156.3
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
7.8
|
281.6
|
-
|
289.4
|
||||
Debt securities
|
39.7
|
145.9
|
-
|
185.6
|
||||
Storm reserve escrow account
|
87.0
|
-
|
-
|
87.0
|
||||
Gas hedge contracts
|
3.0
|
-
|
-
|
3.0
|
||||
$293.8
|
$427.5
|
$-
|
$721.3
|
2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$24.6
|
$-
|
$-
|
$24.6
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
5.1
|
233.6
|
-
|
238.7
|
||||
Debt securities
|
39.5
|
142.7
|
-
|
182.2
|
||||
Storm reserve escrow account
|
90.2
|
-
|
-
|
90.2
|
||||
$159.4
|
$376.3
|
$-
|
$535.7
|
|||||
Liabilities:
|
||||||||
Gas hedge contracts
|
$8.6
|
$-
|
$-
|
$8.6
|
2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$148.5
|
$-
|
$-
|
$148.5
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
1.3
|
172.7
|
-
|
174.0
|
||||
Debt securities
|
52.9
|
58.6
|
-
|
111.5
|
||||
Securitization recovery trust account
|
11.8
|
-
|
-
|
11.8
|
||||
Storm reserve escrow account
|
186.9
|
-
|
-
|
186.9
|
||||
Gas hedge contracts
|
4.8
|
-
|
-
|
4.8
|
||||
$406.2
|
$231.3
|
$-
|
$637.5
|
2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
$2.9
|
$146.3
|
$-
|
$149.2
|
||||
Debt securities
|
51.6
|
53.2
|
-
|
104.8
|
||||
Securitization recovery trust account
|
5.2
|
-
|
-
|
5.2
|
||||
Storm reserve escrow account
|
201.2
|
-
|
-
|
201.2
|
||||
$260.9
|
$199.5
|
$-
|
$460.4
|
|||||
Liabilities:
|
||||||||
Gas hedge contracts
|
$12.4
|
$-
|
$-
|
$12.4
|
2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$26.6
|
$-
|
$-
|
$26.6
|
||||
Storm reserve escrow account
|
31.8
|
-
|
-
|
31.8
|
||||
Gas hedge contracts
|
2.3
|
-
|
-
|
2.3
|
||||
$60.7
|
$-
|
$-
|
$60.7
|
2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Storm reserve escrow account
|
$31.8
|
$-
|
$-
|
$31.8
|
||||
Liabilities:
|
||||||||
Gas hedge contracts
|
$7.8
|
$-
|
$-
|
$7.8
|
2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Storm reserve escrow account
|
$18.8
|
$-
|
$-
|
$18.8
|
2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$9.3
|
$-
|
$-
|
$9.3
|
||||
Storm reserve escrow account
|
12.0
|
-
|
-
|
12.0
|
||||
$21.3
|
$-
|
$-
|
$21.3
|
|||||
Liabilities:
|
||||||||
Gas hedge contracts
|
$1.5
|
$-
|
$-
|
$1.5
|
2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets
:
|
||||||||
Temporary cash investments
|
$62.8
|
$-
|
$-
|
$62.8
|
||||
Securitization recovery trust account
|
32.1
|
-
|
-
|
32.1
|
||||
$94.9
|
$-
|
$-
|
$94.9
|
2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets
:
|
||||||||
Temporary cash investments
|
$65.1
|
$-
|
$-
|
$65.1
|
||||
Securitization recovery trust account
|
41.2
|
-
|
-
|
41.2
|
||||
$106.3
|
$-
|
$-
|
$106.3
|
2012
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$19.8
|
$-
|
$-
|
$19.8
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
0.5
|
279.5
|
-
|
280.0
|
||||
Debt securities
|
138.5
|
65.7
|
-
|
204.2
|
||||
$158.8
|
$345.2
|
$-
|
$504.0
|
2011
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||
(In Millions)
|
||||||||
Assets:
|
||||||||
Temporary cash investments
|
$154.2
|
$-
|
$-
|
$154.2
|
||||
Decommissioning trust funds (a):
|
||||||||
Equity securities
|
2.7
|
234.5
|
-
|
237.2
|
||||
Debt securities
|
123.2
|
63.0
|
-
|
186.2
|
||||
$280.1
|
$297.5
|
$-
|
$577.6
|
(a)
|
The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 for additional information on the investment portfolios.
|
Fair
Value
|
Total
Unrealized
Gains
|
Total
Unrealized
Losses
|
||||
(In Millions)
|
||||||
2012
|
||||||
Equity Securities
|
$2,453
|
$673
|
$2
|
|||
Debt Securities
|
1,723
|
126
|
4
|
|||
Total
|
$4,176
|
$799
|
$6
|
|||
2011
|
||||||
Equity Securities
|
$2,129
|
$423
|
$14
|
|||
Debt Securities
|
1,659
|
115
|
5
|
|||
Total
|
$3,788
|
$538
|
$19
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$24
|
$2
|
$81
|
$1
|
||||
More than 12 months
|
13
|
-
|
50
|
3
|
||||
Total
|
$37
|
$2
|
$131
|
$4
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$130
|
$9
|
$123
|
$3
|
||||
More than 12 months
|
43
|
5
|
60
|
2
|
||||
Total
|
$173
|
$14
|
$183
|
$5
|
2012
|
2011
|
|||
(In Millions)
|
||||
Less than 1 year
|
$46
|
$69
|
||
1 year - 5 years
|
666
|
566
|
||
5 years - 10 years
|
557
|
583
|
||
10 years - 15 years
|
188
|
187
|
||
15 years - 20 years
|
53
|
42
|
||
20 years+
|
213
|
212
|
||
Total
|
$1,723
|
$1,659
|
Fair
Value
|
Total
Unrealized
Gains
|
Total
Unrealized
Losses
|
||||
(In Millions)
|
||||||
2012
|
||||||
Equity Securities
|
$378.8
|
$117.2
|
$-
|
|||
Debt Securities
|
221.1
|
16.2
|
0.1
|
|||
Total
|
$599.9
|
$133.4
|
$0.1
|
|||
2011
|
||||||
Equity Securities
|
$329.4
|
$70.9
|
$0.4
|
|||
Debt Securities
|
212.3
|
15.2
|
0.4
|
|||
Total
|
$541.7
|
$86.1
|
$0.8
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$0.1
|
$-
|
$10.1
|
$0.1
|
||||
More than 12 months
|
-
|
-
|
1.0
|
-
|
||||
Total
|
$0.1
|
$-
|
$11.1
|
$0.1
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$13.7
|
$0.4
|
$14.3
|
$0.4
|
||||
More than 12 months
|
-
|
-
|
1.0
|
-
|
||||
Total
|
$13.7
|
$0.4
|
$15.3
|
$0.4
|
2012
|
2011
|
|||
(In Millions)
|
||||
Less than 1 year
|
$12.6
|
$7.8
|
||
1 year - 5 years
|
101.0
|
86.5
|
||
5 years - 10 years
|
95.7
|
109.1
|
||
10 years - 15 years
|
4.8
|
2.7
|
||
20 years+
|
7.0
|
6.2
|
||
Total
|
$221.1
|
$212.3
|
Fair
Value
|
Total
Unrealized
Gains
|
Total
Unrealized
Losses
|
||||
(In Millions)
|
||||||
2012
|
||||||
Equity Securities
|
$289.4
|
$71.4
|
$-
|
|||
Debt Securities
|
185.6
|
16.8
|
-
|
|||
Total
|
$475.0
|
$88.2
|
$-
|
|||
2011
|
||||||
Equity Securities
|
$238.7
|
$40.9
|
$0.8
|
|||
Debt Securities
|
182.2
|
15.2
|
0.3
|
|||
Total
|
$420.9
|
$56.1
|
$1.1
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$0.1
|
$-
|
$1.8
|
$-
|
||||
More than 12 months
|
0.5
|
-
|
-
|
-
|
||||
Total
|
$0.6
|
$-
|
$1.8
|
$-
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$14.0
|
$0.5
|
$9.3
|
$0.2
|
||||
More than 12 months
|
2.7
|
0.3
|
1.1
|
0.1
|
||||
Total
|
$16.7
|
$0.8
|
$10.4
|
$0.3
|
2012
|
2011
|
|||
(In Millions)
|
||||
Less than 1 year
|
$6.3
|
$7.1
|
||
1 year - 5 years
|
42.1
|
40.8
|
||
5 years - 10 years
|
56.3
|
53.5
|
||
10 years - 15 years
|
65.6
|
62.9
|
||
15 years - 20 years
|
6.0
|
3.2
|
||
20 years+
|
9.3
|
14.7
|
||
Total
|
$185.6
|
$182.2
|
Fair
Value
|
Total
Unrealized
Gains
|
Total
Unrealized
Losses
|
||||
(In Millions)
|
||||||
2012
|
||||||
Equity Securities
|
$174.0
|
$49.3
|
$-
|
|||
Debt Securities
|
111.5
|
10.1
|
0.1
|
|||
Total
|
$285.5
|
$59.4
|
$0.1
|
|||
2011
|
||||||
Equity Securities
|
$149.2
|
$29.7
|
$1.6
|
|||
Debt Securities
|
104.8
|
8.8
|
0.2
|
|||
Total
|
$254.0
|
$38.5
|
$1.8
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$0.1
|
$-
|
$1.4
|
$-
|
||||
More than 12 months
|
2.8
|
-
|
0.6
|
0.1
|
||||
Total
|
$2.9
|
$-
|
$2.0
|
$0.1
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$11.6
|
$0.3
|
$5.5
|
$0.2
|
||||
More than 12 months
|
10.0
|
1.3
|
0.2
|
-
|
||||
Total
|
$21.6
|
$1.6
|
$5.7
|
$0.2
|
2012
|
2011
|
|||
(In Millions)
|
||||
Less than 1 year
|
$2.6
|
$3.9
|
||
1 year - 5 years
|
40.6
|
39.8
|
||
5 years - 10 years
|
24.9
|
22.2
|
||
10 years - 15 years
|
19.7
|
18.9
|
||
15 years - 20 years
|
1.0
|
2.2
|
||
20 years+
|
22.7
|
17.8
|
||
Total
|
$111.5
|
$104.8
|
Fair
Value
|
Total
Unrealized
Gains
|
Total
Unrealized
Losses
|
||||
(In Millions)
|
||||||
2012
|
||||||
Equity Securities
|
$280.0
|
$64.5
|
$0.1
|
|||
Debt Securities
|
204.2
|
9.9
|
-
|
|||
Total
|
$484.2
|
$74.4
|
$0.1
|
|||
2011
|
||||||
Equity Securities
|
$237.2
|
$35.4
|
$5.4
|
|||
Debt Securities
|
186.2
|
9.5
|
0.1
|
|||
Total
|
$423.4
|
$44.9
|
$5.5
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$0.7
|
$-
|
$11.6
|
$-
|
||||
More than 12 months
|
8.3
|
0.1
|
-
|
-
|
||||
Total
|
$9.0
|
$0.1
|
$11.6
|
$-
|
Equity Securities
|
Debt Securities
|
|||||||
Fair
Value
|
Gross
Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized
Losses
|
|||||
(In Millions)
|
||||||||
Less than 12 months
|
$41.3
|
$1.8
|
$10.5
|
$0.1
|
||||
More than 12 months
|
30.0
|
3.6
|
-
|
-
|
||||
Total
|
$71.3
|
$5.4
|
$10.5
|
$0.1
|
2012
|
2011
|
|||
(In Millions)
|
||||
Less than 1 year
|
$5.5
|
$10.2
|
||
1 year - 5 years
|
121.0
|
94.6
|
||
5 years - 10 years
|
53.8
|
57.9
|
||
10 years - 15 years
|
1.6
|
2.6
|
||
15 years - 20 years
|
2.2
|
2.9
|
||
20 years+
|
20.1
|
18.0
|
||
Total
|
$204.2
|
$186.2
|
·
|
Declared that Vermont’s laws requiring Vermont Yankee to cease operation in March 2012 and prohibiting the storage of spent nuclear fuel from operation after that date, absent approval by the General Assembly, were based on radiological safety concerns and are preempted by the Atomic Energy Act;
|
·
|
Permanently enjoined Vermont from enforcing these preempted requirements of the state’s laws; and
|
·
|
Permanently enjoined Vermont under the Commerce Clause of the United States Constitution from conditioning the issuance of a new Certificate of Public Good upon the existence of a below wholesale market power sale agreement with Vermont utilities or Vermont Yankee’s selling power to Vermont utilities at rates below those available to wholesale customers in other states.
|
Significant Unobservable Inputs
|
Range
|
Weighted Average
|
Weighted average cost of capital
|
7.5%-8.0%
|
7.8%
|
Long-term pre-tax operating margin (cash basis)
|
6.1%-7.8%
|
7.2%
|
|
Amount
|
|
(In Millions)
|
||
2011 net revenue
|
$394.4
|
|
Retail electric price
|
8.9
|
|
Reserve equalization
|
(2.3)
|
|
Net wholesale revenue
|
(2.6)
|
|
Volume/weather
|
(6.3)
|
|
Other
|
5.3
|
|
2012 net revenue
|
$397.4
|
|
Amount
|
|
(In Millions)
|
||
2011 net revenue
|
$985.6
|
|
Volume/weather
|
(16.0)
|
|
Reserve equalization
|
(8.0)
|
|
Energy cost recovery
|
3.4
|
|
Retail electric price
|
15.7
|
|
Other
|
6.8
|
|
2012 net revenue
|
$987.5
|
·
|
an increase of $7.0 million in energy efficiency costs. These costs are recovered through the energy efficiency rider and have no effect on net income;
|
·
|
$3.8 million of costs incurred in 2012 related to the planned spin-off and merger of the Utility’s transmission business;
|
·
|
an increase of $2.4 million in compensation and benefits costs resulting from a decrease in the discount rate and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs; and
|
·
|
an increase of $4.3 million in nuclear generation expenses primarily due to higher contract costs.
|
·
|
an increase of $11.4 million in compensation and benefits costs resulting from a decrease in the discount rate and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs;
|
·
|
$9.5 million of costs incurred in 2012 related to the planned spin-off and merger of the Utility’s transmission business;
|
·
|
an increase of $9 million in energy efficiency costs. These costs are recovered through the energy efficiency rider and have no effect on net income;
|
·
|
an increase of $7.8 million in nuclear generation expenses primarily due to higher contract costs; and
|
·
|
nuclear insurance refunds of $2.4 million received in 2011.
|
2012
|
2011
|
||||
(In Thousands)
|
|||||
Cash and cash equivalents at beginning of period
|
$22,599
|
$106,102
|
|||
Cash flow provided by (used in):
|
|||||
Operating activities
|
337,920
|
334,762
|
|||
Investing activities
|
(324,656)
|
(359,111)
|
|||
Financing activities
|
6,759
|
(78,971)
|
|||
Net increase (decrease) in cash and cash equivalents
|
20,023
|
(103,320)
|
|||
Cash and cash equivalents at end of period
|
$42,622
|
$2,782
|
·
|
$117.1 million in dividends paid on common stock in 2011;
|
·
|
the repayment, at maturity, of a $35 million 5.60% Series G note by the nuclear fuel company variable interest entity in September 2011; and
|
·
|
an increase of borrowings of $16.8 million on the nuclear fuel company variable interest entity’s credit facility in 2012 compared to a decrease in borrowings of $2.5 million on the nuclear fuel company variable interest entity’s credit facility in 2011.
|
September 30,
2012
|
December 31,
2011
|
|||
Debt to capital
|
53.1%
|
55.0%
|
||
Effect of excluding the securitization bonds
|
(1.4)%
|
(1.5)%
|
||
Debt to capital, excluding securitization bonds (1)
|
51.7%
|
53.5%
|
||
Effect of subtracting cash
|
(0.6)%
|
(0.3)%
|
||
Net debt to net capital, excluding securitization bonds (1)
|
51.1%
|
53.2%
|
(1)
|
Calculation excludes the securitization bonds, which are non-recourse to Entergy Arkansas.
|
September 30,
2012
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|||
(In Thousands)
|
||||||
$7,487
|
$17,362
|
($32,102)
|
$41,463
|
ENTERGY ARKANSAS, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED INCOME STATEMENTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 656,201 | $ | 658,356 | $ | 1,633,401 | $ | 1,618,687 | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operation and Maintenance:
|
||||||||||||||||
Fuel, fuel-related expenses, and
|
||||||||||||||||
gas purchased for resale
|
116,026 | 100,381 | 362,954 | 269,494 | ||||||||||||
Purchased power
|
145,305 | 164,901 | 318,474 | 373,244 | ||||||||||||
Nuclear refueling outage expenses
|
11,891 | 11,172 | 35,441 | 31,391 | ||||||||||||
Other operation and maintenance
|
140,730 | 129,300 | 406,561 | 373,530 | ||||||||||||
Decommissioning
|
10,198 | 9,588 | 30,128 | 28,327 | ||||||||||||
Taxes other than income taxes
|
26,676 | 24,989 | 69,073 | 63,520 | ||||||||||||
Depreciation and amortization
|
55,092 | 54,483 | 165,697 | 163,993 | ||||||||||||
Other regulatory credits - net
|
(2,553 | ) | (1,280 | ) | (35,478 | ) | (9,611 | ) | ||||||||
TOTAL
|
503,365 | 493,534 | 1,352,850 | 1,293,888 | ||||||||||||
OPERATING INCOME
|
152,836 | 164,822 | 280,551 | 324,799 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Allowance for equity funds used during construction
|
2,258 | 2,033 | 6,491 | 4,913 | ||||||||||||
Interest and investment income
|
3,861 | 3,938 | 11,233 | 13,099 | ||||||||||||
Miscellaneous - net
|
(496 | ) | (1,213 | ) | (3,139 | ) | (3,102 | ) | ||||||||
TOTAL
|
5,623 | 4,758 | 14,585 | 14,910 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
20,532 | 20,726 | 61,707 | 62,749 | ||||||||||||
Allowance for borrowed funds used during construction
|
(648 | ) | (818 | ) | (1,724 | ) | (1,919 | ) | ||||||||
TOTAL
|
19,884 | 19,908 | 59,983 | 60,830 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
138,575 | 149,672 | 235,153 | 278,879 | ||||||||||||
Income taxes
|
56,024 | 68,727 | 92,973 | 122,028 | ||||||||||||
NET INCOME
|
82,551 | 80,945 | 142,180 | 156,851 | ||||||||||||
Preferred dividend requirements
|
1,718 | 1,718 | 5,155 | 5,155 | ||||||||||||
EARNINGS APPLICABLE TO
|
||||||||||||||||
COMMON STOCK
|
$ | 80,833 | $ | 79,227 | $ | 137,025 | $ | 151,696 | ||||||||
See Notes to Financial Statements.
|
ENTERGY ARKANSAS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 142,180 | $ | 156,851 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities:
|
||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
266,755 | 255,051 | ||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
97,641 | (17,536 | ) | |||||
Changes in assets and liabilities:
|
||||||||
Receivables
|
(86,046 | ) | (69,699 | ) | ||||
Fuel inventory
|
3,130 | (8,904 | ) | |||||
Accounts payable
|
(144,562 | ) | 134,019 | |||||
Taxes accrued and prepaid taxes
|
(9,302 | ) | 126,029 | |||||
Interest accrued
|
(11,061 | ) | (5,716 | ) | ||||
Deferred fuel costs
|
88,097 | 8,112 | ||||||
Other working capital accounts
|
32,465 | (129,416 | ) | |||||
Provisions for estimated losses
|
171 | (2,491 | ) | |||||
Other regulatory assets
|
51,089 | 23,478 | ||||||
Pension and other postretirement liabilities
|
(40,976 | ) | (110,423 | ) | ||||
Other assets and liabilities
|
(51,661 | ) | (24,593 | ) | ||||
Net cash flow provided by operating activities
|
337,920 | 334,762 | ||||||
INVESTING ACTIVITIES
|
||||||||
Construction expenditures
|
(273,010 | ) | (271,443 | ) | ||||
Allowance for equity funds used during construction
|
9,002 | 6,451 | ||||||
Nuclear fuel purchases
|
(134,928 | ) | (127,978 | ) | ||||
Proceeds from sale of nuclear fuel
|
76,042 | - | ||||||
Proceeds from nuclear decommissioning trust fund sales
|
103,394 | 82,655 | ||||||
Investment in nuclear decommissioning trust funds
|
(110,520 | ) | (95,723 | ) | ||||
Change in money pool receivable - net
|
9,875 | 41,463 | ||||||
Investment in affiliates
|
- | 10,994 | ||||||
Remittances to transition charge account
|
(11,987 | ) | (11,866 | ) | ||||
Payments from transition charge account
|
7,476 | 6,336 | ||||||
Net cash flow used in investing activities
|
(324,656 | ) | (359,111 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of long-term debt
|
- | 54,804 | ||||||
Retirement of long-term debt
|
(5,990 | ) | (39,145 | ) | ||||
Changes in short-term borrowings - net
|
18,776 | (4,477 | ) | |||||
Changes in money pool payable - net
|
- | 32,102 | ||||||
Dividends paid:
|
||||||||
Common stock
|
- | (117,100 | ) | |||||
Preferred stock
|
(5,155 | ) | (5,155 | ) | ||||
Other
|
(872 | ) | - | |||||
Net cash flow provided by (used in) financing activities
|
6,759 | (78,971 | ) | |||||
Net increase (decrease) in cash and cash equivalents
|
20,023 | (103,320 | ) | |||||
Cash and cash equivalents at beginning of period
|
22,599 | 106,102 | ||||||
Cash and cash equivalents at end of period
|
$ | 42,622 | $ | 2,782 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid (received) during the period for:
|
||||||||
Interest - net of amount capitalized
|
$ | 68,990 | $ | 64,670 | ||||
Income taxes
|
$ | (6,897 | ) | $ | - | |||
See Notes to Financial Statements.
|
ENTERGY ARKANSAS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 6,423 | $ | 4,712 | ||||
Temporary cash investments
|
36,199 | 17,887 | ||||||
Total cash and cash equivalents
|
42,622 | 22,599 | ||||||
Securitization recovery trust account
|
8,401 | 3,890 | ||||||
Accounts receivable:
|
||||||||
Customer
|
150,964 | 90,940 | ||||||
Allowance for doubtful accounts
|
(26,948 | ) | (26,155 | ) | ||||
Associated companies
|
64,013 | 58,030 | ||||||
Other
|
66,002 | 66,838 | ||||||
Accrued unbilled revenues
|
82,508 | 70,715 | ||||||
Total accounts receivable
|
336,539 | 260,368 | ||||||
Deferred fuel costs
|
92,763 | 209,776 | ||||||
Fuel inventory - at average cost
|
45,759 | 48,889 | ||||||
Materials and supplies - at average cost
|
146,037 | 143,343 | ||||||
Deferred nuclear refueling outage costs
|
43,348 | 49,047 | ||||||
System agreement cost equalization
|
17,689 | 36,800 | ||||||
Prepayments and other
|
12,180 | 8,562 | ||||||
TOTAL
|
745,338 | 783,274 | ||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||
Decommissioning trust funds
|
599,857 | 541,657 | ||||||
Non-utility property - at cost (less accumulated depreciation)
|
1,672 | 1,677 | ||||||
Other
|
3,182 | 3,182 | ||||||
TOTAL
|
604,711 | 546,516 | ||||||
UTILITY PLANT
|
||||||||
Electric
|
8,260,030 | 8,079,732 | ||||||
Property under capital lease
|
1,175 | 1,234 | ||||||
Construction work in progress
|
172,918 | 120,211 | ||||||
Nuclear fuel
|
272,041 | 272,593 | ||||||
TOTAL UTILITY PLANT
|
8,706,164 | 8,473,770 | ||||||
Less - accumulated depreciation and amortization
|
3,964,741 | 3,833,596 | ||||||
UTILITY PLANT - NET
|
4,741,423 | 4,640,174 | ||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||
Regulatory assets:
|
||||||||
Deferred fuel costs
|
28,916 | - | ||||||
Regulatory asset for income taxes - net
|
77,768 | 87,357 | ||||||
Other regulatory assets (includes securitization property of
|
||||||||
$95,755 as of September 30, 2012 and $105,762 as of
|
||||||||
December 31, 2011)
|
1,085,411 | 1,126,911 | ||||||
Other
|
27,082 | 27,980 | ||||||
TOTAL
|
1,219,177 | 1,242,248 | ||||||
TOTAL ASSETS
|
$ | 7,310,649 | $ | 7,212,212 | ||||
See Notes to Financial Statements.
|
ENTERGY ARKANSAS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT LIABILITIES
|
||||||||
Currently maturing long-term debt
|
$ | 330,000 | $ | - | ||||
Short-term borrowings
|
52,690 | 33,914 | ||||||
Accounts payable:
|
||||||||
Associated companies
|
61,481 | 228,163 | ||||||
Other
|
158,494 | 138,054 | ||||||
Customer deposits
|
85,336 | 81,074 | ||||||
Taxes accrued
|
26,979 | 36,281 | ||||||
Accumulated deferred income taxes
|
40,571 | 124,267 | ||||||
Interest accrued
|
18,820 | 29,881 | ||||||
Other
|
32,984 | 23,305 | ||||||
TOTAL
|
807,355 | 694,939 | ||||||
NON-CURRENT LIABILITIES
|
||||||||
Accumulated deferred income taxes and taxes accrued
|
1,886,459 | 1,708,760 | ||||||
Accumulated deferred investment tax credits
|
41,445 | 42,939 | ||||||
Other regulatory liabilities
|
152,954 | 133,960 | ||||||
Decommissioning
|
670,356 | 640,228 | ||||||
Accumulated provisions
|
5,811 | 5,640 | ||||||
Pension and other postretirement liabilities
|
498,066 | 539,016 | ||||||
Long-term debt (includes securitization bonds of $107,783 as of
|
||||||||
September 30, 2012 and $113,761 as of December 31, 2011)
|
1,540,076 | 1,875,921 | ||||||
Other
|
10,628 | 10,335 | ||||||
TOTAL
|
4,805,795 | 4,956,799 | ||||||
Commitments and Contingencies
|
||||||||
Preferred stock without sinking fund
|
116,350 | 116,350 | ||||||
COMMON EQUITY
|
||||||||
Common stock, $0.01 par value, authorized 325,000,000
|
||||||||
shares; issued and outstanding 46,980,196 shares in 2012
|
||||||||
and 2011
|
470 | 470 | ||||||
Paid-in capital
|
588,444 | 588,444 | ||||||
Retained earnings
|
992,235 | 855,210 | ||||||
TOTAL
|
1,581,149 | 1,444,124 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 7,310,649 | $ | 7,212,212 | ||||
See Notes to Financial Statements.
|
ENTERGY ARKANSAS, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN COMMON EQUITY
|
||||||||||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited) (In Thousands)
|
||||||||||||||||
Common Equity
|
||||||||||||||||
Common Stock
|
Paid-in Capital
|
Retained Earnings
|
Total
|
|||||||||||||
Balance at December 31, 2010
|
$ | 470 | $ | 588,444 | $ | 814,992 | $ | 1,403,906 | ||||||||
Net income
|
- | - | 156,851 | 156,851 | ||||||||||||
Common stock dividends
|
- | - | (117,100 | ) | (117,100 | ) | ||||||||||
Preferred stock dividends
|
- | - | (5,155 | ) | (5,155 | ) | ||||||||||
Balance at September 30, 2011
|
$ | 470 | $ | 588,444 | $ | 849,588 | $ | 1,438,502 | ||||||||
Balance at December 31, 2011
|
$ | 470 | $ | 588,444 | $ | 855,210 | $ | 1,444,124 | ||||||||
Net income
|
- | - | 142,180 | 142,180 | ||||||||||||
Preferred stock dividends
|
- | - | (5,155 | ) | (5,155 | ) | ||||||||||
Balance at September 30, 2012
|
$ | 470 | $ | 588,444 | $ | 992,235 | $ | 1,581,149 | ||||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY ARKANSAS, INC. AND SUBSIDIARIES
|
||||||||||||||||
SELECTED OPERATING RESULTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012
|
2011
|
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 276 | $ | 280 | $ | (4 | ) | (1 | ) | |||||||
Commercial
|
148 | 146 | 2 | 1 | ||||||||||||
Industrial
|
137 | 134 | 3 | 2 | ||||||||||||
Governmental
|
4 | 6 | (2 | ) | (33 | ) | ||||||||||
Total retail
|
565 | 566 | (1 | ) | - | |||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
71 | 75 | (4 | ) | (5 | ) | ||||||||||
Non-associated companies
|
19 | 22 | (3 | ) | (14 | ) | ||||||||||
Other
|
1 | (5 | ) | 6 | 120 | |||||||||||
Total
|
$ | 656 | $ | 658 | $ | (2 | ) | - | ||||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
2,646 | 2,769 | (123 | ) | (4 | ) | ||||||||||
Commercial
|
1,859 | 1,905 | (46 | ) | (2 | ) | ||||||||||
Industrial
|
1,967 | 2,003 | (36 | ) | (2 | ) | ||||||||||
Governmental
|
72 | 81 | (9 | ) | (11 | ) | ||||||||||
Total retail
|
6,544 | 6,758 | (214 | ) | (3 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
1,581 | 1,937 | (356 | ) | (18 | ) | ||||||||||
Non-associated companies
|
292 | 267 | 25 | 9 | ||||||||||||
Total
|
8,417 | 8,962 | (545 | ) | (6 | ) | ||||||||||
Nine Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012 | 2011 |
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 613 | $ | 612 | $ | 1 | - | |||||||||
Commercial
|
364 | 345 | 19 | 6 | ||||||||||||
Industrial
|
335 | 318 | 17 | 5 | ||||||||||||
Governmental
|
15 | 15 | - | - | ||||||||||||
Total retail
|
1,327 | 1,290 | 37 | 3 | ||||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
221 | 212 | 9 | 4 | ||||||||||||
Non-associated companies
|
28 | 69 | (41 | ) | (59 | ) | ||||||||||
Other
|
57 | 48 | 9 | 19 | ||||||||||||
Total
|
$ | 1,633 | $ | 1,619 | $ | 14 | 1 | |||||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
6,270 | 6,674 | (404 | ) | (6 | ) | ||||||||||
Commercial
|
4,682 | 4,690 | (8 | ) | - | |||||||||||
Industrial
|
5,248 | 5,320 | (72 | ) | (1 | ) | ||||||||||
Governmental
|
198 | 210 | (12 | ) | (6 | ) | ||||||||||
Total retail
|
16,398 | 16,894 | (496 | ) | (3 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
5,450 | 5,318 | 132 | 2 | ||||||||||||
Non-associated companies
|
800 | 892 | (92 | ) | (10 | ) | ||||||||||
Total
|
22,648 | 23,104 | (456 | ) | (2 | ) | ||||||||||
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$253.8
|
|
Net wholesale revenue
|
(5.7)
|
|
Retail electric price
|
(4.6)
|
|
Asset retirement obligation
|
(3.6)
|
|
Volume/weather
|
(2.0)
|
|
Other
|
1.4
|
|
2012 net revenue
|
$239.3
|
·
|
a decrease in the average market price of purchased power and decreased demand; and
|
·
|
a decrease in deferred fuel expense due to the timing of receipt of System Agreement payments and credits to customers and lower fuel cost recovery revenues in 2012.
|
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$718.6
|
|
Louisiana Act 55 financing tax settlement sharing
|
(27.2)
|
|
Volume/weather
|
(13.0)
|
|
Retail electric price
|
(10.8)
|
|
Net wholesale revenue
|
(10.2)
|
|
Other
|
(3.7)
|
|
2012 net revenue
|
$653.7
|
·
|
a decrease in the average market prices of purchased power and natural gas; and
|
·
|
a decrease in deferred fuel expense due to the timing of receipt of System Agreement payments and credits to customers and lower fuel cost recovery revenues in 2012.
|
·
|
an increase of $7.7 million in compensation and benefits costs primarily due to decreasing discount rates and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs;
|
·
|
an increase of $5.1 million in nuclear generation expenses primarily due to higher labor costs, including higher contract labor;
|
·
|
an increase of $4.6 million in fossil-fueled generation expenses resulting primarily from increased plant outages and an increased scope of work as compared to the prior year; and
|
·
|
$3.4 million of costs incurred in 2012 related to the planned spin-off and merger of the transmission business.
|
2012
|
2011
|
||||
(In Thousands)
|
|||||
Cash and cash equivalents at beginning of period
|
$24,845
|
$155,173
|
|||
Cash flow provided by (used in):
|
|||||
Operating activities
|
391,711
|
314,457
|
|||
Investing activities
|
(145,984)
|
(179,431)
|
|||
Financing activities
|
(94,008)
|
(264,335)
|
|||
Net increase (decrease) in cash and cash equivalents
|
151,719
|
(129,309)
|
|||
Cash and cash equivalents at end of period
|
$176,564
|
$25,864
|
·
|
an increase in the recovery of fuel and purchased power costs due to System Agreement bandwidth remedy payments of $75 million received in January 2012 as a result of receipts required to implement the FERC’s remedy in an October 2011 order for the period June – December 2005. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of the System Agreement proceedings; and
|
·
|
a decrease of $9.1 million in pension contributions. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for a discussion of qualified pension and other postretirement benefits.
|
·
|
fluctuations in nuclear fuel activity because of variations from year to year in the timing and pricing of fuel reload requirements in the Utility business, material and services deliveries, and the timing of cash payments during the nuclear fuel cycle;
|
·
|
$51 million in proceeds from the sale of a portion of Entergy Gulf States Louisiana’s investment in Entergy Holdings Company’s Class A preferred membership interests to a third party in 2012; and
|
·
|
a decrease in nuclear construction expenditures as a result of the River Bend refueling outage in 2011. River Bend had a refueling outage in 2011 and did not have one in 2012.
|
·
|
money pool activity;
|
·
|
higher distribution construction expenses due to Hurricane Isaac and increased reliability work performed in 2012; and
|
·
|
an increase in fossil-fueled generation construction expenses due to an increased scope of work in 2012.
|
·
|
the repayment, at maturity, of $60 million 5.41% Series O notes by the nuclear fuel company variable interest entity in July 2012;
|
·
|
the redemption of $10.84 million of 5.8% Series pollution control revenue bonds in April 2012; and
|
·
|
payments of $29.4 million on credit borrowings for the nine months ended September 30, 2012 compared to an increase of $18.5 million in credit borrowings for the nine months ended September 30, 2011 against the nuclear fuel company variable interest entity credit facility.
|
September 30,
2012
|
December 31,
2011
|
|||
Debt to capital
|
51.9%
|
53.6%
|
||
Effect of subtracting cash
|
(3.1)%
|
(0.4)%
|
||
Net debt to net capital
|
48.8%
|
53.2%
|
September 30,
2012
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|||
(In Thousands)
|
||||||
$32,161
|
$23,596
|
$13,280
|
$63,003
|
ENTERGY GULF STATES LOUISIANA, L.L.C.
|
||||||||||||||||
INCOME STATEMENTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 425,999 | $ | 587,275 | $ | 1,201,178 | $ | 1,565,964 | ||||||||
Natural gas
|
8,452 | 9,673 | 34,251 | 49,444 | ||||||||||||
TOTAL
|
434,451 | 596,948 | 1,235,429 | 1,615,408 | ||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operation and Maintenance:
|
||||||||||||||||
Fuel, fuel-related expenses, and
|
||||||||||||||||
gas purchased for resale
|
34,821 | 135,034 | 131,248 | 291,592 | ||||||||||||
Purchased power
|
156,398 | 224,452 | 417,909 | 622,949 | ||||||||||||
Nuclear refueling outage expenses
|
4,415 | 4,454 | 13,147 | 13,796 | ||||||||||||
Other operation and maintenance
|
89,446 | 89,081 | 267,505 | 255,566 | ||||||||||||
Decommissioning
|
3,783 | 3,572 | 11,187 | 10,565 | ||||||||||||
Taxes other than income taxes
|
19,141 | 20,668 | 55,728 | 58,246 | ||||||||||||
Depreciation and amortization
|
36,958 | 35,784 | 109,345 | 107,183 | ||||||||||||
Other regulatory charges (credits) - net
|
3,928 | (16,373 | ) | 32,536 | (17,695 | ) | ||||||||||
TOTAL
|
348,890 | 496,672 | 1,038,605 | 1,342,202 | ||||||||||||
OPERATING INCOME
|
85,561 | 100,276 | 196,824 | 273,206 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Allowance for equity funds used during construction
|
1,760 | 2,273 | 6,512 | 6,176 | ||||||||||||
Interest and investment income
|
13,442 | 10,269 | 33,350 | 30,100 | ||||||||||||
Miscellaneous - net
|
(1,615 | ) | (2,643 | ) | (6,727 | ) | (6,515 | ) | ||||||||
TOTAL
|
13,587 | 9,899 | 33,135 | 29,761 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
20,406 | 20,731 | 62,297 | 63,311 | ||||||||||||
Allowance for borrowed funds used during construction
|
(652 | ) | (931 | ) | (2,516 | ) | (2,624 | ) | ||||||||
TOTAL
|
19,754 | 19,800 | 59,781 | 60,687 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
79,394 | 90,375 | 170,178 | 242,280 | ||||||||||||
Income taxes
|
29,184 | 37,205 | 41,220 | 92,083 | ||||||||||||
NET INCOME
|
50,210 | 53,170 | 128,958 | 150,197 | ||||||||||||
Preferred distribution requirements and other
|
206 | 206 | 619 | 619 | ||||||||||||
EARNINGS APPLICABLE TO COMMON EQUITY
|
$ | 50,004 | $ | 52,964 | $ | 128,339 | $ | 149,578 | ||||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY GULF STATES LOUISIANA, L.L.C.
|
||||||||||||||||
STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
Net Income
|
$ | 50,210 | $ | 53,170 | $ | 128,958 | $ | 150,197 | ||||||||
Other comprehensive income
|
||||||||||||||||
Pension and other postretirement liabilities
|
||||||||||||||||
(net of tax expense of $703, $507, $8,247, and $1,522)
|
862 | 486 | 12,397 | 1,715 | ||||||||||||
Other comprehensive income
|
862 | 486 | 12,397 | 1,715 | ||||||||||||
Comprehensive Income
|
$ | 51,072 | $ | 53,656 | $ | 141,355 | $ | 151,912 | ||||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY GULF STATES LOUISIANA, L.L.C.
|
||||||||
STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 128,958 | $ | 150,197 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities:
|
||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
158,577 | 154,739 | ||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
51,415 | (24,492 | ) | |||||
Changes in working capital:
|
||||||||
Receivables
|
63,699 | (153,380 | ) | |||||
Fuel inventory
|
(7,747 | ) | 9,427 | |||||
Accounts payable
|
42,149 | (64,105 | ) | |||||
Prepaid taxes and taxes accrued
|
67,987 | 148,158 | ||||||
Interest accrued
|
5,696 | 5,877 | ||||||
Deferred fuel costs
|
(91,354 | ) | (1,596 | ) | ||||
Other working capital accounts
|
(11,434 | ) | 75,582 | |||||
Changes in provisions for estimated losses
|
(3,100 | ) | 1,670 | |||||
Changes in other regulatory assets
|
(5,648 | ) | 21,858 | |||||
Changes in pension and other postretirement liabilities
|
(3,459 | ) | (16,605 | ) | ||||
Other
|
(4,028 | ) | 7,127 | |||||
Net cash flow provided by operating activities
|
391,711 | 314,457 | ||||||
INVESTING ACTIVITIES
|
||||||||
Construction expenditures
|
(198,785 | ) | (156,944 | ) | ||||
Allowance for equity funds used during construction
|
6,512 | 6,176 | ||||||
Nuclear fuel purchases
|
(41,592 | ) | (73,853 | ) | ||||
Proceeds from the sale of nuclear fuel
|
56,579 | 9,647 | ||||||
Proceeds from nuclear decommissioning trust fund sales
|
96,653 | 56,543 | ||||||
Investment in nuclear decommissioning trust funds
|
(111,084 | ) | (70,623 | ) | ||||
Change in money pool receivable - net
|
(8,565 | ) | 49,723 | |||||
Proceeds from the sale of investment
|
51,000 | - | ||||||
Receipts from storm reserve escrow account
|
3,364 | - | ||||||
Other
|
(66 | ) | (100 | ) | ||||
Net cash flow used in investing activities
|
(145,984 | ) | (179,431 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of long-term debt
|
74,251 | - | ||||||
Retirement of long-term debt
|
(70,840 | ) | - | |||||
Changes in credit borrowings - net
|
(29,400 | ) | 18,500 | |||||
Dividends/distributions paid:
|
||||||||
Common equity
|
(67,400 | ) | (281,950 | ) | ||||
Preferred membership interests
|
(619 | ) | (619 | ) | ||||
Other
|
- | (266 | ) | |||||
Net cash flow used in financing activities
|
(94,008 | ) | (264,335 | ) | ||||
Net increase (decrease) in cash and cash equivalents
|
151,719 | (129,309 | ) | |||||
Cash and cash equivalents at beginning of period
|
24,845 | 155,173 | ||||||
Cash and cash equivalents at end of period
|
$ | 176,564 | $ | 25,864 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid/(received) during the period for:
|
||||||||
Interest - net of amount capitalized
|
$ | 54,291 | $ | 55,073 | ||||
Income taxes
|
$ | - | $ | (7 | ) | |||
See Notes to Financial Statements.
|
||||||||
ENTERGY GULF STATES LOUISIANA, L.L.C.
|
||||||||
BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 20,295 | $ | 217 | ||||
Temporary cash investments
|
156,269 | 24,628 | ||||||
Total cash and cash equivalents
|
176,564 | 24,845 | ||||||
Accounts receivable:
|
||||||||
Customer
|
64,723 | 61,648 | ||||||
Allowance for doubtful accounts
|
(749 | ) | (843 | ) | ||||
Associated companies
|
110,558 | 171,431 | ||||||
Other
|
18,710 | 22,082 | ||||||
Accrued unbilled revenues
|
57,097 | 51,155 | ||||||
Total accounts receivable
|
250,339 | 305,473 | ||||||
Fuel inventory - at average cost
|
30,996 | 23,249 | ||||||
Materials and supplies - at average cost
|
120,566 | 114,075 | ||||||
Deferred nuclear refueling outage costs
|
8,474 | 21,066 | ||||||
Gas hedge contracts
|
2,971 | - | ||||||
Prepayments and other
|
9,053 | 5,180 | ||||||
TOTAL
|
598,963 | 493,888 | ||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||
Investment in affiliate preferred membership interests
|
289,664 | 339,664 | ||||||
Decommissioning trust funds
|
474,976 | 420,917 | ||||||
Non-utility property - at cost (less accumulated depreciation)
|
164,898 | 164,712 | ||||||
Storm reserve escrow account
|
86,951 | 90,249 | ||||||
Other
|
13,310 | 12,701 | ||||||
TOTAL
|
1,029,799 | 1,028,243 | ||||||
UTILITY PLANT
|
||||||||
Electric
|
7,206,302 | 7,068,657 | ||||||
Natural gas
|
133,893 | 129,950 | ||||||
Construction work in progress
|
172,141 | 122,051 | ||||||
Nuclear fuel
|
151,729 | 206,031 | ||||||
TOTAL UTILITY PLANT
|
7,664,065 | 7,526,689 | ||||||
Less - accumulated depreciation and amortization
|
3,983,405 | 3,906,353 | ||||||
UTILITY PLANT - NET
|
3,680,660 | 3,620,336 | ||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||
Regulatory assets:
|
||||||||
Regulatory asset for income taxes - net
|
172,995 | 173,724 | ||||||
Other regulatory assets
|
340,275 | 333,898 | ||||||
Deferred fuel costs
|
100,124 | 100,124 | ||||||
Other
|
15,768 | 13,506 | ||||||
TOTAL
|
629,162 | 621,252 | ||||||
TOTAL ASSETS
|
$ | 5,938,584 | $ | 5,763,719 | ||||
See Notes to Financial Statements.
|
ENTERGY GULF STATES LOUISIANA, L.L.C.
|
||||||||
BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT LIABILITIES
|
||||||||
Currently maturing long-term debt
|
$ | 75,000 | $ | 60,000 | ||||
Accounts payable:
|
||||||||
Associated companies
|
87,451 | 73,305 | ||||||
Other
|
154,731 | 101,009 | ||||||
Customer deposits
|
48,146 | 49,734 | ||||||
Taxes accrued
|
175,354 | 107,367 | ||||||
Accumulated deferred income taxes
|
20,634 | 5,107 | ||||||
Interest accrued
|
31,780 | 26,084 | ||||||
Deferred fuel costs
|
5,824 | 97,178 | ||||||
Pension and other postretirement liabilities
|
8,295 | 7,911 | ||||||
Gas hedge contracts
|
- | 8,572 | ||||||
Other
|
14,763 | 15,294 | ||||||
TOTAL
|
621,978 | 551,561 | ||||||
NON-CURRENT LIABILITIES
|
||||||||
Accumulated deferred income taxes and taxes accrued
|
1,371,292 | 1,368,563 | ||||||
Accumulated deferred investment tax credits
|
79,114 | 81,520 | ||||||
Other regulatory liabilities
|
117,007 | 75,721 | ||||||
Decommissioning and asset retirement cost liabilities
|
375,452 | 359,792 | ||||||
Accumulated provisions
|
96,351 | 99,033 | ||||||
Pension and other postretirement liabilities
|
328,829 | 332,672 | ||||||
Long-term debt
|
1,442,369 | 1,482,430 | ||||||
Long-term payables - associated companies
|
29,912 | 31,254 | ||||||
Other
|
68,282 | 47,397 | ||||||
TOTAL
|
3,908,608 | 3,878,382 | ||||||
Commitments and Contingencies
|
||||||||
EQUITY
|
||||||||
Preferred membership interests without sinking fund
|
10,000 | 10,000 | ||||||
Member's equity
|
1,455,211 | 1,393,386 | ||||||
Accumulated other comprehensive loss
|
(57,213 | ) | (69,610 | ) | ||||
TOTAL
|
1,407,998 | 1,333,776 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 5,938,584 | $ | 5,763,719 | ||||
See Notes to Financial Statements.
|
ENTERGY GULF STATES LOUISIANA, L.L.C.
|
||||||||||||||||
STATEMENTS OF CHANGES IN EQUITY
|
||||||||||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited) (In Thousands)
|
||||||||||||||||
Common Equity
|
||||||||||||||||
Preferred Membership Interests
|
Member's Equity
|
Accumulated Other Comprehensive Income (Loss)
|
Total
|
|||||||||||||
Balance at December 31, 2010
|
$ | 10,000 | $ | 1,494,593 | $ | (40,304 | ) | $ | 1,464,289 | |||||||
Net income
|
- | 150,197 | - | 150,197 | ||||||||||||
Other comprehensive income
|
- | - | 1,715 | 1,715 | ||||||||||||
Dividends/distributions declared on common equity
|
- | (281,950 | ) | - | (281,950 | ) | ||||||||||
Dividends/distributions declared on preferred membership interests
|
- | (619 | ) | - | (619 | ) | ||||||||||
Other
|
- | (19 | ) | - | (19 | ) | ||||||||||
Balance at September 30, 2011
|
$ | 10,000 | $ | 1,362,202 | $ | (38,589 | ) | $ | 1,333,613 | |||||||
Balance at December 31, 2011
|
$ | 10,000 | $ | 1,393,386 | $ | (69,610 | ) | $ | 1,333,776 | |||||||
Net income
|
- | 128,958 | - | 128,958 | ||||||||||||
Member contribution
|
- | 1,000 | - | 1,000 | ||||||||||||
Other comprehensive income
|
- | - | 12,397 | 12,397 | ||||||||||||
Dividends/distributions declared on common equity
|
- | (67,400 | ) | - | (67,400 | ) | ||||||||||
Dividends/distributions declared on preferred membership interests
|
- | (619 | ) | - | (619 | ) | ||||||||||
Other
|
- | (114 | ) | - | (114 | ) | ||||||||||
Balance at September 30, 2012
|
$ | 10,000 | $ | 1,455,211 | $ | (57,213 | ) | $ | 1,407,998 | |||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY GULF STATES LOUISIANA, L.L.C.
|
||||||||||||||||
SELECTED OPERATING RESULTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012
|
2011
|
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 119 | $ | 166 | $ | (47 | ) | (28 | ) | |||||||
Commercial
|
90 | 125 | (35 | ) | (28 | ) | ||||||||||
Industrial
|
89 | 136 | (47 | ) | (35 | ) | ||||||||||
Governmental
|
5 | 5 | 0 | - | ||||||||||||
Total retail
|
303 | 432 | (129 | ) | (30 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
103 | 136 | (33 | ) | (24 | ) | ||||||||||
Non-associated companies
|
9 | 14 | (5 | ) | (36 | ) | ||||||||||
Other
|
11 | 5 | 6 | 120 | ||||||||||||
Total
|
$ | 426 | $ | 587 | $ | (161 | ) | (27 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
1,718 | 1,802 | (84 | ) | (5 | ) | ||||||||||
Commercial
|
1,500 | 1,516 | (16 | ) | (1 | ) | ||||||||||
Industrial
|
2,210 | 2,299 | (89 | ) | (4 | ) | ||||||||||
Governmental
|
61 | 61 | 0 | - | ||||||||||||
Total retail
|
5,489 | 5,678 | (189 | ) | (3 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
2,295 | 2,462 | (167 | ) | (7 | ) | ||||||||||
Non-associated companies
|
229 | 243 | (14 | ) | (6 | ) | ||||||||||
Total
|
8,013 | 8,383 | (370 | ) | (4 | ) | ||||||||||
Nine Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012 | 2011 |
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 295 | $ | 386 | $ | (91 | ) | (24 | ) | |||||||
Commercial
|
258 | 325 | (67 | ) | (21 | ) | ||||||||||
Industrial
|
287 | 379 | (92 | ) | (24 | ) | ||||||||||
Governmental
|
14 | 16 | (2 | ) | (13 | ) | ||||||||||
Total retail
|
854 | 1,106 | (252 | ) | (23 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
281 | 381 | (100 | ) | (26 | ) | ||||||||||
Non-associated companies
|
23 | 42 | (19 | ) | (45 | ) | ||||||||||
Other
|
43 | 37 | 6 | 16 | ||||||||||||
Total
|
$ | 1,201 | $ | 1,566 | $ | (365 | ) | (23 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
4,019 | 4,278 | (259 | ) | (6 | ) | ||||||||||
Commercial
|
4,003 | 4,004 | (1 | ) | - | |||||||||||
Industrial
|
6,741 | 6,819 | (78 | ) | (1 | ) | ||||||||||
Governmental
|
174 | 168 | 6 | 4 | ||||||||||||
Total retail
|
14,937 | 15,269 | (332 | ) | (2 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
5,858 | 6,598 | (740 | ) | (11 | ) | ||||||||||
Non-associated companies
|
673 | 753 | (80 | ) | (11 | ) | ||||||||||
Total
|
21,468 | 22,620 | (1,152 | ) | (5 | ) | ||||||||||
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$130.3
|
|
Mark-to-market tax settlement sharing
|
199.6
|
|
Volume/weather
|
(16.7)
|
|
Other
|
(1.1)
|
|
2012 net revenue
|
$312.1
|
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$650.1
|
|
Mark-to-market tax settlement sharing
|
201.4
|
|
Retail electric price
|
13.7
|
|
Volume/weather
|
(25.5)
|
|
Louisiana Act 55 financing tax settlement sharing
|
(135.6)
|
|
Other
|
(1.6)
|
|
2012 net revenue
|
$702.5
|
·
|
a decrease of $270.2 million in fuel cost recovery revenues primarily due to lower fuel rates. Entergy Louisiana’s fuel and purchased power recovery mechanism is discussed in Note 2 to the financial statements in the Form 10-K;
|
·
|
the decrease related to volume/weather, as discussed above; and
|
·
|
a decrease of $15.9 million in gross wholesale revenues due to a decrease in sales to affiliated customers.
|
·
|
cessation in 2011 of interest on transmission credits per a FERC order relating to an interconnection and operating agreement between a power producer and Entergy Louisiana;
|
·
|
the issuance by Entergy Louisiana Investment Recovery Funding, L.L.C., a wholly owned subsidiary of Entergy Louisiana, of $207.2 million of senior secured investment recovery bonds with a coupon rate of 2.04% in September 2011;
|
·
|
the issuance of $250 million of 1.875% Series first mortgage bonds in January 2012; and
|
·
|
the issuance of $200 million of 5.25% Series first mortgage bonds in July 2012.
|
·
|
an increase of $8 million in compensation and benefits costs primarily due to decreasing discount rates and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs;
|
·
|
an increase of $8.6 million in fossil-fueled generation expenses due to an overall higher scope of outages compared to prior year and the addition of Acadia Unit 2 in April 2011; and
|
·
|
$4.8 million of costs incurred in 2012 related to the planned spin-off and merger of the transmission business.
|
·
|
cessation in 2011 of interest on transmission credits per a FERC order relating to an interconnection and operating agreement between a power producer and Entergy Louisiana;
|
·
|
the issuance of $200 million of 4.8% Series first mortgage bonds in March 2011;
|
·
|
the issuance by Entergy Louisiana Investment Recovery Funding, L.L.C., a wholly owned subsidiary of Entergy Louisiana, of $207.2 million of senior secured investment recovery bonds with a coupon rate of 2.04% in September 2011;
|
·
|
the issuance of $250 million of 1.875% Series first mortgage bonds in January 2012; and
|
·
|
the issuance of $200 million of 5.25% Series first mortgage bonds in July 2012.
|
2012
|
2011
|
||||
(In Thousands)
|
|||||
Cash and cash equivalents at beginning of period
|
$878
|
$123,254
|
|||
Cash flow provided by (used in):
|
|||||
Operating activities
|
401,672
|
248,173
|
|||
Investing activities
|
(519,816)
|
(699,523)
|
|||
Financing activities
|
266,171
|
381,593
|
|||
Net increase (decrease) in cash and cash equivalents
|
148,027
|
(69,757)
|
|||
Cash and cash equivalents at end of period
|
$148,905
|
$53,497
|
·
|
the purchase of the Acadia Unit 2 for approximately $300 million in April 2011;
|
·
|
a decrease in nuclear fuel activity because of variations from year to year in the timing and pricing of fuel reload requirements in the Utility business, material and services deliveries, and the timing of cash payments during the nuclear fuel cycle;
|
·
|
a decrease in transmission construction expenditures due to increased work performed in 2011; and
|
·
|
receipts of $13.7 million in 2012 from the storm reserve escrow account.
|
·
|
an increase in fossil construction expenditures due to spending on the Ninemile Unit 6 self-build project;
|
·
|
an increase in nuclear construction expenditures due to the Waterford 3 steam generator replacement project in 2012. The increase is partially offset by various nuclear projects in 2011; and
|
·
|
money pool activity.
|
·
|
money pool activity;
|
·
|
the payment on credit borrowings of $50 million on Entergy Louisiana’s credit facility in 2012;
|
·
|
a principal payment of $12.3 million in 2012 for the Senior Secured Investment Recovery bonds;
|
·
|
the issuances of $250 million of 1.875% Series first mortgage bonds in January 2012 and $200 million of 5.25% Series first mortgage bonds in July 2012 compared to the issuance of $200 million of 4.8% Series first mortgage bonds in March 2011;
|
·
|
the issuance by Entergy Louisiana Investment Recovery Funding, L.L.C., a wholly owned subsidiary of Entergy Louisiana, of $207.2 million of senior secured investment recovery bonds with a coupon rate of 2.04% in September 2011;
|
·
|
an increase in borrowings of $12.1 million on the nuclear fuel company variable interest entity’s credit facility in 2012 compared to an increase in borrowings of $33.5 million on the nuclear fuel company variable interest entity’s credit facility in 2011;
|
·
|
the issuance of the $25 million 3.25% Series G note by the nuclear fuel company variable interest entity in August 2012;
|
·
|
the issuance of the $20 million 3.30% Series F note by the nuclear fuel company variable interest entity in March 2011;
|
·
|
a principal payment of $25.3 million in 2012 for the Waterford 3 sale-leaseback obligation compared to a principal payment of $35.5 million in 2011; and
|
·
|
a decrease of $30.6 million in common equity dividends in 2012.
|
September 30,
2012
|
December 31,
2011
|
|||
Debt to capital
|
49.0%
|
47.2%
|
||
Effect of excluding securitization bonds
|
(1.9)%
|
(2.3)%
|
||
Debt to capital, excluding securitization bonds (1)
|
47.1%
|
44.9%
|
||
Effect of subtracting cash
|
(1.5)%
|
-%
|
||
Net debt to net capital, excluding securitization bonds (1)
|
45.6%
|
44.9%
|
(1)
|
Calculation excludes the securitization bonds, which are non-recourse to Entergy Louisiana.
|
September 30,
2012
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|||
(In Thousands)
|
||||||
$30,710
|
($118,415)
|
$27,107
|
$49,887
|
ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED INCOME STATEMENTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 614,044 | $ | 786,814 | $ | 1,658,189 | $ | 1,954,095 | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operation and Maintenance:
|
||||||||||||||||
Fuel, fuel-related expenses, and
|
||||||||||||||||
gas purchased for resale
|
134,108 | 221,832 | 320,991 | 450,589 | ||||||||||||
Purchased power
|
168,817 | 239,484 | 505,935 | 670,408 | ||||||||||||
Nuclear refueling outage expenses
|
6,103 | 6,861 | 18,573 | 21,042 | ||||||||||||
Other operation and maintenance
|
106,523 | 107,740 | 334,559 | 320,544 | ||||||||||||
Decommissioning
|
5,169 | 6,219 | 18,172 | 18,328 | ||||||||||||
Taxes other than income taxes
|
17,913 | 18,232 | 52,122 | 53,316 | ||||||||||||
Depreciation and amortization
|
54,642 | 52,991 | 162,474 | 154,414 | ||||||||||||
Other regulatory charges (credits) - net
|
(956 | ) | 195,161 | 128,749 | 182,951 | |||||||||||
TOTAL
|
492,319 | 848,520 | 1,541,575 | 1,871,592 | ||||||||||||
OPERATING INCOME (LOSS)
|
121,725 | (61,706 | ) | 116,614 | 82,503 | |||||||||||
OTHER INCOME
|
||||||||||||||||
Allowance for equity funds used during construction
|
9,981 | 8,278 | 27,032 | 23,929 | ||||||||||||
Interest and investment income
|
21,566 | 21,975 | 63,178 | 66,101 | ||||||||||||
Miscellaneous - net
|
519 | (1,353 | ) | (1,680 | ) | (2,007 | ) | |||||||||
TOTAL
|
32,066 | 28,900 | 88,530 | 88,023 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
35,731 | 25,363 | 101,434 | 84,698 | ||||||||||||
Allowance for borrowed funds used during construction
|
(4,776 | ) | (4,373 | ) | (12,530 | ) | (12,776 | ) | ||||||||
TOTAL
|
30,955 | 20,990 | 88,904 | 71,922 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES
|
122,836 | (53,796 | ) | 116,240 | 98,604 | |||||||||||
Income taxes (benefit)
|
42,628 | (391,518 | ) | (127,977 | ) | (354,521 | ) | |||||||||
NET INCOME
|
80,208 | 337,722 | 244,217 | 453,125 | ||||||||||||
Preferred dividend requirements and other
|
1,738 | 1,738 | 5,213 | 5,213 | ||||||||||||
EARNINGS APPLICABLE TO
|
||||||||||||||||
COMMON EQUITY
|
$ | 78,470 | $ | 335,984 | $ | 239,004 | $ | 447,912 | ||||||||
See Notes to Financial Statements.
|
ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
Net Income
|
$ | 80,208 | $ | 337,722 | $ | 244,217 | $ | 453,125 | ||||||||
Other comprehensive income
|
||||||||||||||||
Pension and other postretirement liabilities
|
||||||||||||||||
(net of tax expense of $493, $366, $1,480, and $1,097)
|
630 | 366 | 1,890 | 1,467 | ||||||||||||
Other comprehensive income
|
630 | 366 | 1,890 | 1,467 | ||||||||||||
Comprehensive Income
|
$ | 80,838 | $ | 338,088 | $ | 246,107 | $ | 454,592 | ||||||||
See Notes to Financial Statements.
|
ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 244,217 | $ | 453,125 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities:
|
||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
299,745 | 212,963 | ||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
(94,765 | ) | (273,339 | ) | ||||
Changes in working capital:
|
||||||||
Receivables
|
(37,610 | ) | (110,234 | ) | ||||
Fuel inventory
|
(3 | ) | (25,623 | ) | ||||
Accounts payable
|
65,772 | (72 | ) | |||||
Prepaid taxes and taxes accrued
|
6,383 | 17,526 | ||||||
Interest accrued
|
(1,557 | ) | 1,342 | |||||
Deferred fuel costs
|
(30,132 | ) | (41,969 | ) | ||||
Other working capital accounts
|
(29,490 | ) | (13,528 | ) | ||||
Changes in provisions for estimated losses
|
(17,392 | ) | (7,802 | ) | ||||
Changes in other regulatory assets
|
(42,781 | ) | 84,811 | |||||
Changes in other regulatory liabilities
|
139,624 | 193,034 | ||||||
Changes in pension and other postretirement liabilities
|
(17,361 | ) | (42,095 | ) | ||||
Other
|
(82,978 | ) | (199,966 | ) | ||||
Net cash flow provided by operating activities
|
401,672 | 248,173 | ||||||
INVESTING ACTIVITIES
|
||||||||
Construction expenditures
|
(429,820 | ) | (314,799 | ) | ||||
Allowance for equity funds used during construction
|
27,032 | 23,929 | ||||||
Nuclear fuel purchases
|
(134,413 | ) | (135,404 | ) | ||||
Proceeds from the sale of nuclear fuel
|
48,990 | 11,570 | ||||||
Payment for purchase of plant
|
- | (299,589 | ) | |||||
Receipts from storm reserve escrow account
|
13,669 | - | ||||||
Remittances to transition charge account
|
(22,113 | ) | - | |||||
Payments from transition charge account
|
15,472 | - | ||||||
Proceeds from nuclear decommissioning trust fund sales
|
19,833 | 11,491 | ||||||
Investment in nuclear decommissioning trust funds
|
(28,422 | ) | (19,279 | ) | ||||
Changes in money pool receivable - net
|
(30,710 | ) | 22,780 | |||||
Other
|
666 | (222 | ) | |||||
Net cash flow used in investing activities
|
(519,816 | ) | (699,523 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of long-term debt
|
465,997 | 420,076 | ||||||
Retirement of long-term debt
|
(37,649 | ) | (35,547 | ) | ||||
Changes in short-term borrowings - net
|
(37,949 | ) | 33,477 | |||||
Change in money pool payable - net
|
(118,415 | ) | - | |||||
Distributions paid:
|
||||||||
Common equity
|
(600 | ) | (31,200 | ) | ||||
Preferred membership interests
|
(5,213 | ) | (5,213 | ) | ||||
Net cash flow provided by financing activities
|
266,171 | 381,593 | ||||||
Net increase (decrease) in cash and cash equivalents
|
148,027 | (69,757 | ) | |||||
Cash and cash equivalents at beginning of period
|
878 | 123,254 | ||||||
Cash and cash equivalents at end of period
|
$ | 148,905 | $ | 53,497 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid (received) during the period for:
|
||||||||
Interest - net of amount capitalized
|
$ | 98,979 | $ | 80,354 | ||||
Income taxes
|
$ | (3,601 | ) | $ | (77 | ) | ||
See Notes to Financial Statements.
|
ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 435 | $ | 878 | ||||
Temporary cash investments
|
148,470 | - | ||||||
Total cash and cash equivalents
|
148,905 | 878 | ||||||
Securitization recovery trust account
|
11,840 | 5,200 | ||||||
Accounts receivable:
|
||||||||
Customer
|
140,270 | 102,379 | ||||||
Allowance for doubtful accounts
|
(1,184 | ) | (1,147 | ) | ||||
Associated companies
|
82,752 | 60,661 | ||||||
Other
|
7,663 | 10,945 | ||||||
Accrued unbilled revenues
|
90,087 | 78,430 | ||||||
Total accounts receivable
|
319,588 | 251,268 | ||||||
Fuel inventory
|
23,922 | 23,919 | ||||||
Materials and supplies - at average cost
|
150,411 | 140,561 | ||||||
Deferred nuclear refueling outage costs
|
10,504 | 24,197 | ||||||
Prepayments and other
|
18,083 | 13,171 | ||||||
TOTAL
|
683,253 | 459,194 | ||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||
Investment in affiliate preferred membership interests
|
807,423 | 807,424 | ||||||
Decommissioning trust funds
|
285,500 | 253,968 | ||||||
Storm reserve escrow account
|
186,914 | 201,249 | ||||||
Non-utility property - at cost (less accumulated depreciation)
|
624 | 760 | ||||||
TOTAL
|
1,280,461 | 1,263,401 | ||||||
UTILITY PLANT
|
||||||||
Electric
|
8,045,081 | 7,859,136 | ||||||
Property under capital lease
|
278,421 | 274,334 | ||||||
Construction work in progress
|
954,983 | 559,437 | ||||||
Nuclear fuel
|
182,115 | 165,380 | ||||||
TOTAL UTILITY PLANT
|
9,460,600 | 8,858,287 | ||||||
Less - accumulated depreciation and amortization
|
3,717,442 | 3,606,706 | ||||||
UTILITY PLANT - NET
|
5,743,158 | 5,251,581 | ||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||
Regulatory assets:
|
||||||||
Regulatory asset for income taxes - net
|
184,770 | 175,952 | ||||||
Other regulatory assets (includes securitization property of
|
||||||||
$178,664 as of September 30, 2012 and
|
||||||||
$198,445 as of December 31, 2011)
|
848,435 | 814,472 | ||||||
Deferred fuel costs
|
67,998 | 67,998 | ||||||
Other
|
42,252 | 31,269 | ||||||
TOTAL
|
1,143,455 | 1,089,691 | ||||||
TOTAL ASSETS
|
$ | 8,850,327 | $ | 8,063,867 | ||||
See Notes to Financial Statements.
|
ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT LIABILITIES
|
||||||||
Currently maturing long-term debt
|
$ | 14,236 | $ | 75,309 | ||||
Short-term borrowings
|
56,444 | 44,392 | ||||||
Accounts payable:
|
||||||||
Associated companies
|
82,472 | 218,001 | ||||||
Other
|
371,996 | 130,295 | ||||||
Customer deposits
|
87,943 | 86,099 | ||||||
Accumulated deferred income taxes
|
13,879 | 4,690 | ||||||
Taxes accrued
|
37,721 | 31,338 | ||||||
Interest accrued
|
34,978 | 36,535 | ||||||
Deferred fuel costs
|
36,403 | 66,535 | ||||||
Pension and other postretirement liabilities
|
9,348 | 9,161 | ||||||
System agreement cost equalization
|
17,689 | 36,800 | ||||||
Gas hedge contracts
|
- | 12,397 | ||||||
Other
|
20,521 | 19,278 | ||||||
TOTAL
|
783,630 | 770,830 | ||||||
NON-CURRENT LIABILITIES
|
||||||||
Accumulated deferred income taxes and taxes accrued
|
1,011,483 | 1,098,690 | ||||||
Accumulated deferred investment tax credits
|
70,964 | 73,283 | ||||||
Other regulatory liabilities
|
435,166 | 295,542 | ||||||
Decommissioning
|
412,887 | 345,834 | ||||||
Accumulated provisions
|
195,668 | 213,060 | ||||||
Pension and other postretirement liabilities
|
442,137 | 459,685 | ||||||
Long-term debt (includes securitization bonds of
|
||||||||
$194,797 as of September 30, 2012 and
|
||||||||
$207,123 as of December 31, 2011)
|
2,625,478 | 2,177,003 | ||||||
Other
|
67,691 | 65,011 | ||||||
TOTAL
|
5,261,474 | 4,728,108 | ||||||
Commitments and Contingencies
|
||||||||
EQUITY
|
||||||||
Preferred membership interests without sinking fund
|
100,000 | 100,000 | ||||||
Member's equity
|
2,742,840 | 2,504,436 | ||||||
Accumulated other comprehensive loss
|
(37,617 | ) | (39,507 | ) | ||||
TOTAL
|
2,805,223 | 2,564,929 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 8,850,327 | $ | 8,063,867 | ||||
See Notes to Financial Statements.
|
ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
||||||||||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited) (In Thousands)
|
||||||||||||||||
Common Equity
|
||||||||||||||||
Preferred Membership Interests
|
Member's Equity
|
Accumulated Other Comprehensive Income (Loss)
|
Total
|
|||||||||||||
Balance at December 31, 2010
|
$ | 100,000 | $ | 2,061,833 | $ | (24,962 | ) | $ | 2,136,871 | |||||||
Net income
|
- | 453,125 | - | 453,125 | ||||||||||||
Additional non-cash contribution resulting from tax settlement
|
- | 333,830 | - | 333,830 | ||||||||||||
Other comprehensive income
|
- | - | 1,467 | 1,467 | ||||||||||||
Dividends/distributions declared on common equity
|
- | (31,200 | ) | - | (31,200 | ) | ||||||||||
Dividends/distributions declared on preferred membership interests
|
- | (5,213 | ) | - | (5,213 | ) | ||||||||||
Balance at September 30, 2011
|
$ | 100,000 | $ | 2,812,375 | $ | (23,495 | ) | $ | 2,888,880 | |||||||
Balance at December 31, 2011
|
$ | 100,000 | $ | 2,504,436 | $ | (39,507 | ) | $ | 2,564,929 | |||||||
Net income
|
- | 244,217 | - | 244,217 | ||||||||||||
Other comprehensive income
|
- | - | 1,890 | 1,890 | ||||||||||||
Dividends/distributions declared on common equity
|
- | (600 | ) | - | (600 | ) | ||||||||||
Dividends/distributions declared on preferred membership interests
|
- | (5,213 | ) | - | (5,213 | ) | ||||||||||
Balance at September 30, 2012
|
$ | 100,000 | $ | 2,742,840 | $ | (37,617 | ) | $ | 2,805,223 | |||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
|
||||||||||||||||
SELECTED OPERATING RESULTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012
|
2011
|
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 227 | $ | 296 | $ | (69 | ) | (23 | ) | |||||||
Commercial
|
136 | 169 | (33 | ) | (20 | ) | ||||||||||
Industrial
|
180 | 256 | (76 | ) | (30 | ) | ||||||||||
Governmental
|
11 | 12 | (1 | ) | (8 | ) | ||||||||||
Total retail
|
554 | 733 | (179 | ) | (24 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
46 | 40 | 6 | 15 | ||||||||||||
Non-associated companies
|
1 | 1 | - | - | ||||||||||||
Other
|
13 | 13 | - | - | ||||||||||||
Total
|
$ | 614 | $ | 787 | $ | (173 | ) | (22 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
2,866 | 3,089 | (223 | ) | (7 | ) | ||||||||||
Commercial
|
1,786 | 1,833 | (47 | ) | (3 | ) | ||||||||||
Industrial
|
4,157 | 4,305 | (148 | ) | (3 | ) | ||||||||||
Governmental
|
125 | 124 | 1 | 1 | ||||||||||||
Total retail
|
8,934 | 9,351 | (417 | ) | (4 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
682 | 669 | 13 | 2 | ||||||||||||
Non-associated companies
|
21 | 35 | (14 | ) | (40 | ) | ||||||||||
Total
|
9,637 | 10,055 | (418 | ) | (4 | ) | ||||||||||
Nine Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012 | 2011 |
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 541 | $ | 667 | $ | (126 | ) | (19 | ) | |||||||
Commercial
|
368 | 422 | (54 | ) | (13 | ) | ||||||||||
Industrial
|
554 | 649 | (95 | ) | (15 | ) | ||||||||||
Governmental
|
29 | 32 | (3 | ) | (9 | ) | ||||||||||
Total retail
|
1,492 | 1,770 | (278 | ) | (16 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
99 | 109 | (10 | ) | (9 | ) | ||||||||||
Non-associated companies
|
1 | 6 | (5 | ) | (83 | ) | ||||||||||
Other
|
66 | 69 | (3 | ) | (4 | ) | ||||||||||
Total
|
$ | 1,658 | $ | 1,954 | $ | (296 | ) | (15 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
6,844 | 7,441 | (597 | ) | (8 | ) | ||||||||||
Commercial
|
4,675 | 4,729 | (54 | ) | (1 | ) | ||||||||||
Industrial
|
12,448 | 11,720 | 728 | 6 | ||||||||||||
Governmental
|
362 | 358 | 4 | 1 | ||||||||||||
Total retail
|
24,329 | 24,248 | 81 | - | ||||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
1,749 | 1,772 | (23 | ) | (1 | ) | ||||||||||
Non-associated companies
|
39 | 118 | (79 | ) | (67 | ) | ||||||||||
Total
|
26,117 | 26,138 | (21 | ) | - | |||||||||||
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$155.9
|
|
Retail electric price
|
12.1
|
|
Other
|
(0.1)
|
|
2012 net revenue
|
$167.9
|
·
|
a decrease of $40.3 million in fuel cost recovery revenues primarily attributable to lower fuel rates. Entergy Mississippi’s fuel recovery mechanism is discussed in Note 2 to the financial statements in the Form 10-K; and
|
·
|
a decrease of $24.3 million in gross wholesale revenues due to a decrease in sales to affiliated customers.
|
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$427.5
|
|
Retail electric price
|
10.2
|
|
Reserve equalization
|
(3.4)
|
|
Volume/weather
|
(3.6)
|
|
Other
|
1.7
|
|
2012 net revenue
|
$432.4
|
·
|
a decrease of $56.9 million in fuel cost recovery revenues primarily attributable to lower fuel rates. Entergy Mississippi’s fuel recovery mechanism is discussed in Note 2 to the financial statements in the Form 10-K;
|
·
|
a decrease of $44.3 million in gross wholesale revenues due to a decrease in sales to affiliated customers; and
|
·
|
a decrease of $9.4 million in power management rider revenue. See Note 2 to the financial statements in the Form 10-K for additional discussion of the power management rider.
|
·
|
an increase of $9.9 million resulting from a temporary increase in the storm damage reserve authorized by the MPSC effective August 2012;
|
·
|
$5.4 million of costs incurred in 2012 related to the planned spin-off and merger of the transmission business; and
|
·
|
an increase of $3.9 million in compensation and benefits costs resulting from decreasing discount rates and changes in certain actuarial assumptions resulting from a recent experience study. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs.
|
2012
|
2011
|
||||
(In Thousands)
|
|||||
Cash and cash equivalents at beginning of period
|
$16
|
$1,216
|
|||
Cash flow provided by (used in):
|
|||||
Operating activities
|
156,020
|
43,148
|
|||
Investing activities
|
(124,165)
|
(109,146)
|
|||
Financing activities
|
(4,214)
|
65,761
|
|||
Net increase (decrease) in cash and cash equivalents
|
27,461
|
(237)
|
|||
Cash and cash equivalents at end of period
|
$27,657
|
$979
|
·
|
the purchase in 2011 of $42.6 million of fuel oil from System Fuels because System Fuels will no longer procure fuel oil for the Utility companies;
|
·
|
an increase in the recovery of fuel costs due to System Agreement bandwidth remedy payments of $33 million received in January 2012 to implement the FERC’s remedy in an October 2011 order for the period June-December 2005. See Note 2 to the financial statements in the Form 10-K for a discussion of the System Agreement proceedings; and
|
·
|
a decrease of $15.5 million in pension contributions. See
“MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
”
in the Form 10-K and Note 6 to the financial statements herein for a discussion of qualified pension and other postretirement benefits.
|
September 30,
2012
|
December 31,
2011
|
|||
Debt to capital
|
49.8%
|
51.2%
|
||
Effect of subtracting cash
|
(0.7)%
|
-%
|
||
Net debt to net capital
|
49.1%
|
51.2%
|
September 30,
2012
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|||
(In Thousands)
|
||||||
$5,497
|
($1,999)
|
($15,617)
|
($33,255)
|
ENTERGY MISSISSIPPI, INC.
|
||||||||||||||||
INCOME STATEMENTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 321,771 | $ | 365,569 | $ | 860,735 | $ | 956,746 | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operation and Maintenance:
|
||||||||||||||||
Fuel, fuel-related expenses, and
|
||||||||||||||||
gas purchased for resale
|
57,230 | 111,804 | 204,703 | 243,674 | ||||||||||||
Purchased power
|
93,817 | 95,319 | 232,140 | 270,823 | ||||||||||||
Other operation and maintenance
|
64,446 | 53,231 | 173,043 | 156,577 | ||||||||||||
Taxes other than income taxes
|
19,742 | 18,279 | 56,980 | 52,841 | ||||||||||||
Depreciation and amortization
|
24,377 | 23,476 | 72,451 | 69,630 | ||||||||||||
Other regulatory charges (credits) - net
|
2,828 | 2,525 | (8,476 | ) | 14,700 | |||||||||||
TOTAL
|
262,440 | 304,634 | 730,841 | 808,245 | ||||||||||||
OPERATING INCOME
|
59,331 | 60,935 | 129,894 | 148,501 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Allowance for equity funds used during construction
|
760 | 1,927 | 2,950 | 6,246 | ||||||||||||
Interest and investment income
|
19 | 120 | 43 | 187 | ||||||||||||
Miscellaneous - net
|
(806 | ) | (742 | ) | (2,916 | ) | (2,579 | ) | ||||||||
TOTAL
|
(27 | ) | 1,305 | 77 | 3,854 | |||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
14,113 | 10,155 | 42,761 | 38,604 | ||||||||||||
Allowance for borrowed funds used during construction
|
(405 | ) | (1,072 | ) | (1,568 | ) | (3,474 | ) | ||||||||
TOTAL
|
13,708 | 9,083 | 41,193 | 35,130 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
45,596 | 53,157 | 88,778 | 117,225 | ||||||||||||
Income taxes
|
18,516 | 19,988 | 37,102 | 42,913 | ||||||||||||
NET INCOME
|
27,080 | 33,169 | 51,676 | 74,312 | ||||||||||||
Preferred dividend requirements and other
|
707 | 707 | 2,121 | 2,121 | ||||||||||||
EARNINGS APPLICABLE TO
|
||||||||||||||||
COMMON STOCK
|
$ | 26,373 | $ | 32,462 | $ | 49,555 | $ | 72,191 | ||||||||
See Notes to Financial Statements.
|
ENTERGY MISSISSIPPI, INC.
|
||||||||
STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 51,676 | $ | 74,312 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities:
|
||||||||
Depreciation and amortization
|
72,451 | 69,630 | ||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
39,703 | 34,947 | ||||||
Changes in assets and liabilities:
|
||||||||
Receivables
|
23,552 | (19,554 | ) | |||||
Fuel inventory
|
(3,377 | ) | (43,219 | ) | ||||
Accounts payable
|
12,637 | (2,248 | ) | |||||
Taxes accrued
|
(15,150 | ) | (1,665 | ) | ||||
Interest accrued
|
(3,683 | ) | 774 | |||||
Deferred fuel costs
|
(12,249 | ) | (30,750 | ) | ||||
Other working capital accounts
|
(10,977 | ) | 4,518 | |||||
Provisions for estimated losses
|
(2,496 | ) | (693 | ) | ||||
Other regulatory assets
|
10,526 | (2,311 | ) | |||||
Pension and other postretirement liabilities
|
(10,438 | ) | (26,110 | ) | ||||
Other assets and liabilities
|
3,845 | (14,483 | ) | |||||
Net cash flow provided by operating activities
|
156,020 | 43,148 | ||||||
INVESTING ACTIVITIES
|
||||||||
Construction expenditures
|
(121,634 | ) | (121,813 | ) | ||||
Allowance for equity funds used during construction
|
2,950 | 6,246 | ||||||
Proceeds from sale of assets
|
- | 868 | ||||||
Investments in affiliates
|
- | 5,527 | ||||||
Change in money pool receivable - net
|
(5,497 | ) | - | |||||
Other
|
16 | 26 | ||||||
Net cash flow used in investing activities
|
(124,165 | ) | (109,146 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of long-term debt
|
- | 268,820 | ||||||
Retirement of long-term debt
|
- | (180,000 | ) | |||||
Change in money pool payable - net
|
(1,999 | ) | (17,638 | ) | ||||
Dividends paid:
|
||||||||
Common stock
|
- | (3,300 | ) | |||||
Preferred stock
|
(2,121 | ) | (2,121 | ) | ||||
Other
|
(94 | ) | - | |||||
Net cash flow provided by (used in) financing activities
|
(4,214 | ) | 65,761 | |||||
Net increase (decrease) in cash and cash equivalents
|
27,641 | (237 | ) | |||||
Cash and cash equivalents at beginning of period
|
16 | 1,216 | ||||||
Cash and cash equivalents at end of period
|
$ | 27,657 | $ | 979 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest - net of amount capitalized
|
$ | 44,481 | $ | 35,861 | ||||
Income taxes
|
$ | 2,118 | $ | - | ||||
See Notes to Financial Statements.
|
ENTERGY MISSISSIPPI, INC.
|
||||||||
BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 1,072 | $ | 7 | ||||
Temporary cash investments
|
26,585 | 9 | ||||||
Total cash and cash equivalents
|
27,657 | 16 | ||||||
Accounts receivable:
|
||||||||
Customer
|
73,933 | 51,026 | ||||||
Allowance for doubtful accounts
|
(1,112 | ) | (756 | ) | ||||
Associated companies
|
12,844 | 51,329 | ||||||
Other
|
9,252 | 13,924 | ||||||
Accrued unbilled revenues
|
40,919 | 38,368 | ||||||
Total accounts receivable
|
135,836 | 153,891 | ||||||
Accumulated deferred income taxes
|
8,850 | 11,694 | ||||||
Fuel inventory - at average cost
|
45,876 | 42,499 | ||||||
Materials and supplies - at average cost
|
37,919 | 35,716 | ||||||
Prepayments and other
|
8,136 | 4,666 | ||||||
TOTAL
|
264,274 | 248,482 | ||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||
Non-utility property - at cost (less accumulated depreciation)
|
4,705 | 4,725 | ||||||
Storm reserve escrow account
|
31,828 | 31,844 | ||||||
TOTAL
|
36,533 | 36,569 | ||||||
UTILITY PLANT
|
||||||||
Electric
|
3,413,589 | 3,274,031 | ||||||
Property under capital lease
|
8,777 | 10,721 | ||||||
Construction work in progress
|
78,328 | 105,083 | ||||||
TOTAL UTILITY PLANT
|
3,500,694 | 3,389,835 | ||||||
Less - accumulated depreciation and amortization
|
1,265,248 | 1,210,092 | ||||||
UTILITY PLANT - NET
|
2,235,446 | 2,179,743 | ||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||
Regulatory assets:
|
||||||||
Regulatory asset for income taxes - net
|
63,833 | 65,196 | ||||||
Other regulatory assets
|
384,224 | 393,387 | ||||||
Other
|
19,149 | 20,017 | ||||||
TOTAL
|
467,206 | 478,600 | ||||||
TOTAL ASSETS
|
$ | 3,003,459 | $ | 2,943,394 | ||||
See Notes to Financial Statements.
|
ENTERGY MISSISSIPPI, INC.
|
||||||||
BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
|
||||||||
CURRENT LIABILITIES
|
||||||||
Currently maturing long-term debt
|
$ | 100,000 | $ | - | ||||
Accounts payable:
|
||||||||
Associated companies
|
49,365 | 46,311 | ||||||
Other
|
59,749 | 41,489 | ||||||
Customer deposits
|
70,805 | 68,610 | ||||||
Taxes accrued
|
30,386 | 45,536 | ||||||
Interest accrued
|
17,867 | 21,550 | ||||||
Deferred fuel costs
|
3,592 | 15,841 | ||||||
Other
|
10,149 | 17,474 | ||||||
TOTAL
|
341,913 | 256,811 | ||||||
NON-CURRENT LIABILITIES
|
||||||||
Accumulated deferred income taxes and taxes accrued
|
709,322 | 672,129 | ||||||
Accumulated deferred investment tax credits
|
6,961 | 6,372 | ||||||
Obligations under capital lease
|
6,038 | 8,112 | ||||||
Other regulatory liabilities
|
2,260 | - | ||||||
Asset retirement cost liabilities
|
5,952 | 5,697 | ||||||
Accumulated provisions
|
35,793 | 38,289 | ||||||
Pension and other postretirement liabilities
|
133,606 | 144,088 | ||||||
Long-term debt
|
820,484 | 920,439 | ||||||
Other
|
5,488 | 5,370 | ||||||
TOTAL
|
1,725,904 | 1,800,496 | ||||||
Commitments and Contingencies
|
||||||||
Preferred stock without sinking fund
|
50,381 | 50,381 | ||||||
COMMON EQUITY
|
||||||||
Common stock, no par value, authorized 12,000,000
|
||||||||
shares; issued and outstanding 8,666,357 shares in 2012 and 2011
|
199,326 | 199,326 | ||||||
Capital stock expense and other
|
(690 | ) | (690 | ) | ||||
Retained earnings
|
686,625 | 637,070 | ||||||
TOTAL
|
885,261 | 835,706 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 3,003,459 | $ | 2,943,394 | ||||
See Notes to Financial Statements.
|
ENTERGY MISSISSIPPI, INC.
|
||||||||||||||||
STATEMENTS OF CHANGES IN COMMON EQUITY
|
||||||||||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited) (In Thousands)
|
||||||||||||||||
Common Equity
|
||||||||||||||||
Common Stock
|
Capital Stock Expense and Other
|
Retained Earnings
|
Total
|
|||||||||||||
Balance at December 31, 2010
|
$ | 199,326 | $ | (690 | ) | $ | 534,469 | $ | 733,105 | |||||||
Net income
|
- | - | 74,312 | 74,312 | ||||||||||||
Common stock dividends
|
- | - | (3,300 | ) | (3,300 | ) | ||||||||||
Preferred stock dividends
|
- | - | (2,121 | ) | (2,121 | ) | ||||||||||
Balance at September 30, 2011
|
$ | 199,326 | $ | (690 | ) | $ | 603,360 | $ | 801,996 | |||||||
Balance at December 31, 2011
|
$ | 199,326 | $ | (690 | ) | $ | 637,070 | $ | 835,706 | |||||||
Net income
|
- | - | 51,676 | 51,676 | ||||||||||||
Preferred stock dividends
|
- | - | (2,121 | ) | (2,121 | ) | ||||||||||
Balance at September 30, 2012
|
$ | 199,326 | $ | (690 | ) | $ | 686,625 | $ | 885,261 | |||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY MISSISSIPPI, INC.
|
||||||||||||||||
SELECTED OPERATING RESULTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012
|
2011
|
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 144 | $ | 159 | $ | (15 | ) | (9 | ) | |||||||
Commercial
|
108 | 117 | (9 | ) | (8 | ) | ||||||||||
Industrial
|
36 | 37 | (1 | ) | (3 | ) | ||||||||||
Governmental
|
10 | 10 | - | - | ||||||||||||
Total retail
|
298 | 323 | (25 | ) | (8 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
5 | 28 | (23 | ) | (82 | ) | ||||||||||
Non-associated companies
|
7 | 9 | (2 | ) | (22 | ) | ||||||||||
Other
|
12 | 5 | 7 | 140 | ||||||||||||
Total
|
$ | 322 | $ | 365 | $ | (43 | ) | (12 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
1,917 | 2,020 | (103 | ) | (5 | ) | ||||||||||
Commercial
|
1,468 | 1,522 | (54 | ) | (4 | ) | ||||||||||
Industrial
|
651 | 641 | 10 | 2 | ||||||||||||
Governmental
|
117 | 120 | (3 | ) | (3 | ) | ||||||||||
Total retail
|
4,153 | 4,303 | (150 | ) | (3 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
54 | 111 | (57 | ) | (51 | ) | ||||||||||
Non-associated companies
|
109 | 122 | (13 | ) | (11 | ) | ||||||||||
Total
|
4,316 | 4,536 | (220 | ) | (5 | ) | ||||||||||
Nine Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012 | 2011 |
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 355 | $ | 394 | $ | (39 | ) | (10 | ) | |||||||
Commercial
|
292 | 311 | (19 | ) | (6 | ) | ||||||||||
Industrial
|
107 | 111 | (4 | ) | (4 | ) | ||||||||||
Governmental
|
28 | 28 | - | - | ||||||||||||
Total retail
|
782 | 844 | (62 | ) | (7 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
15 | 56 | (41 | ) | (73 | ) | ||||||||||
Non-associated companies
|
18 | 22 | (4 | ) | (18 | ) | ||||||||||
Other
|
46 | 35 | 11 | 31 | ||||||||||||
Total
|
$ | 861 | $ | 957 | $ | (96 | ) | (10 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
4,387 | 4,715 | (328 | ) | (7 | ) | ||||||||||
Commercial
|
3,785 | 3,834 | (49 | ) | (1 | ) | ||||||||||
Industrial
|
1,801 | 1,745 | 56 | 3 | ||||||||||||
Governmental
|
311 | 316 | (5 | ) | (2 | ) | ||||||||||
Total retail
|
10,284 | 10,610 | (326 | ) | (3 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
153 | 316 | (163 | ) | (52 | ) | ||||||||||
Non-associated companies
|
201 | 274 | (73 | ) | (27 | ) | ||||||||||
Total
|
10,638 | 11,200 | (562 | ) | (5 | ) | ||||||||||
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$71.5
|
|
Retail electric price
|
(2.5)
|
|
Volume/weather
|
(2.0)
|
|
Other
|
2.4
|
|
2012 net revenue
|
$69.4
|
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$199.2
|
|
Retail electric price
|
(6.2)
|
|
Volume/weather
|
(5.8)
|
|
Net gas revenue
|
(1.7)
|
|
Other
|
0.4
|
|
2012 net revenue
|
$185.9
|
·
|
a decrease of $45.5 million in gross wholesale revenue primarily due to decreased sales to affiliate customers;
|
·
|
a decrease of $17.8 million in gross gas revenues primarily due to lower fuel cost recovery revenues as a result of lower fuel rates and the effect of milder weather. Entergy New Orleans’s fuel and purchased power recovery mechanism is discussed in Note 2 to the financial statements in the Form 10-K; and
|
·
|
less favorable volume/weather, as discussed above.
|
·
|
the deferral in 2011 of $13.4 million of 2010 Michoud plant maintenance costs pursuant to the settlement of Entergy New Orleans’s 2010 test year formula rate plan filing approved by the City Council in September 2011. See Note 2 to the financial statements in the Form 10-K for more discussion of the 2010 test year formula rate plan filing and settlement; and
|
·
|
an increase of $6.1 million in fossil-fueled generation expenses due to higher plant outage costs in 2012 due to a greater scope of work at the Michoud plant.
|
2012
|
2011
|
||||
(In Thousands)
|
|||||
Cash and cash equivalents at beginning of period
|
$9,834
|
$54,986
|
|||
Cash flow provided by (used in):
|
|||||
Operating activities
|
23,160
|
60,952
|
|||
Investing activities
|
(44,538)
|
(43,019)
|
|||
Financing activities
|
12,716
|
(29,554)
|
|||
Net decrease in cash and cash equivalents
|
(8,662)
|
(11,621)
|
|||
Cash and cash equivalents at end of period
|
$1,172
|
$43,365
|
·
|
higher distribution construction expenditures due to Hurricane Isaac;
|
·
|
higher transmission construction expenditures due to increased work performed in 2012;
|
·
|
the repayment by System Fuels of Entergy New Orleans’s $3.3 million investment in System Fuels in 2011; and
|
·
|
an increase of $2.0 million in payments to the storm reserve escrow account in 2012 compared to 2011.
|
September 30,
2012
|
December 31,
2011
|
|||
Debt to capital
|
43.5%
|
45.3%
|
||
Effect of subtracting cash
|
(0.2)%
|
(1.5)%
|
||
Net debt to net capital
|
43.3%
|
43.8%
|
September 30,
2012
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|||
(In Thousands)
|
||||||
($15,719)
|
$9,074
|
$22,110
|
$21,820
|
ENTERGY NEW ORLEANS, INC.
|
||||||||||||||||
INCOME STATEMENTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 146,459 | $ | 165,266 | $ | 360,772 | $ | 413,777 | ||||||||
Natural gas
|
15,106 | 16,766 | 59,193 | 77,009 | ||||||||||||
TOTAL
|
161,565 | 182,032 | 419,965 | 490,786 | ||||||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operation and Maintenance:
|
||||||||||||||||
Fuel, fuel-related expenses, and
|
||||||||||||||||
gas purchased for resale
|
29,298 | 53,013 | 68,585 | 133,698 | ||||||||||||
Purchased power
|
62,410 | 57,052 | 164,042 | 156,433 | ||||||||||||
Other operation and maintenance
|
28,671 | 14,850 | 92,475 | 70,888 | ||||||||||||
Taxes other than income taxes
|
11,941 | 11,564 | 33,110 | 32,716 | ||||||||||||
Depreciation and amortization
|
9,178 | 8,473 | 27,446 | 26,371 | ||||||||||||
Other regulatory charges - net
|
502 | 477 | 1,483 | 1,434 | ||||||||||||
TOTAL
|
142,000 | 145,429 | 387,141 | 421,540 | ||||||||||||
OPERATING INCOME
|
19,565 | 36,603 | 32,824 | 69,246 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Allowance for equity funds used during construction
|
185 | 147 | 487 | 369 | ||||||||||||
Interest and investment income
|
8 | 59 | 29 | 122 | ||||||||||||
Miscellaneous - net
|
(385 | ) | (317 | ) | (1,147 | ) | (848 | ) | ||||||||
TOTAL
|
(192 | ) | (111 | ) | (631 | ) | (357 | ) | ||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
2,738 | 2,768 | 8,366 | 8,321 | ||||||||||||
Allowance for borrowed funds used during construction
|
(88 | ) | (67 | ) | (230 | ) | (167 | ) | ||||||||
TOTAL
|
2,650 | 2,701 | 8,136 | 8,154 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
16,723 | 33,791 | 24,057 | 60,735 | ||||||||||||
Income taxes
|
6,168 | 14,848 | 6,276 | 24,658 | ||||||||||||
NET INCOME
|
10,555 | 18,943 | 17,781 | 36,077 | ||||||||||||
Preferred dividend requirements and other
|
241 | 241 | 724 | 724 | ||||||||||||
EARNINGS APPLICABLE TO
|
||||||||||||||||
COMMON STOCK
|
$ | 10,314 | $ | 18,702 | $ | 17,057 | $ | 35,353 | ||||||||
See Notes to Financial Statements.
|
ENTERGY NEW ORLEANS, INC.
|
||||||||
STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 17,781 | $ | 36,077 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities:
|
||||||||
Depreciation and amortization
|
27,446 | 26,371 | ||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
12,269 | (9,129 | ) | |||||
Changes in assets and liabilities:
|
||||||||
Receivables
|
(17,721 | ) | 4,073 | |||||
Fuel inventory
|
1,977 | (1,171 | ) | |||||
Accounts payable
|
11,175 | (8,504 | ) | |||||
Prepaid taxes and taxes accrued
|
(10,826 | ) | 28,076 | |||||
Interest accrued
|
(740 | ) | (773 | ) | ||||
Deferred fuel costs
|
(6,095 | ) | (769 | ) | ||||
Other working capital accounts
|
(6,628 | ) | (1,489 | ) | ||||
Provisions for estimated losses
|
6,015 | 6,571 | ||||||
Other regulatory assets
|
(10,748 | ) | (6,769 | ) | ||||
Pension and other postretirement liabilities
|
(6,597 | ) | (11,200 | ) | ||||
Other assets and liabilities
|
5,852 | (412 | ) | |||||
Net cash flow provided by operating activities
|
23,160 | 60,952 | ||||||
INVESTING ACTIVITIES
|
||||||||
Construction expenditures
|
(47,325 | ) | (41,607 | ) | ||||
Allowance for equity funds used during construction
|
487 | 369 | ||||||
Change in money pool receivable - net
|
9,074 | (290 | ) | |||||
Investment in affiliates
|
- | 3,256 | ||||||
Payments to storm reserve escrow account
|
(6,774 | ) | (4,747 | ) | ||||
Net cash flow used in investing activities
|
(44,538 | ) | (43,019 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Change in money pool payable - net
|
15,719 | - | ||||||
Dividends paid:
|
||||||||
Common stock
|
(1,700 | ) | (27,800 | ) | ||||
Preferred stock
|
(724 | ) | (724 | ) | ||||
Other
|
(579 | ) | (1,030 | ) | ||||
Net cash flow provided by (used in) financing activities
|
12,716 | (29,554 | ) | |||||
Net decrease in cash and cash equivalents
|
(8,662 | ) | (11,621 | ) | ||||
Cash and cash equivalents at beginning of period
|
9,834 | 54,986 | ||||||
Cash and cash equivalents at end of period
|
$ | 1,172 | $ | 43,365 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest - net of amount capitalized
|
$ | 8,431 | $ | 8,343 | ||||
See Notes to Financial Statements.
|
ENTERGY NEW ORLEANS, INC.
|
||||||||
BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
||||||||
Cash
|
$ | 1,171 | $ | 486 | ||||
Temporary cash investments
|
1 | 9,348 | ||||||
Total cash and cash equivalents
|
1,172 | 9,834 | ||||||
Accounts receivable:
|
||||||||
Customer
|
46,283 | 29,038 | ||||||
Allowance for doubtful accounts
|
(417 | ) | (465 | ) | ||||
Associated companies
|
4,332 | 12,167 | ||||||
Other
|
1,299 | 2,603 | ||||||
Accrued unbilled revenues
|
17,516 | 17,023 | ||||||
Total accounts receivable
|
69,013 | 60,366 | ||||||
Accumulated deferred income taxes
|
4,862 | 6,419 | ||||||
Fuel inventory - at average cost
|
1,829 | 3,806 | ||||||
Materials and supplies - at average cost
|
10,750 | 9,392 | ||||||
Prepaid taxes
|
10,826 | - | ||||||
Prepayments and other
|
6,591 | 2,679 | ||||||
TOTAL
|
105,043 | 92,496 | ||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||
Non-utility property at cost (less accumulated depreciation)
|
1,016 | 1,016 | ||||||
Storm reserve escrow account
|
18,770 | 11,996 | ||||||
TOTAL
|
19,786 | 13,012 | ||||||
UTILITY PLANT
|
||||||||
Electric
|
832,998 | 812,329 | ||||||
Natural gas
|
216,906 | 213,160 | ||||||
Construction work in progress
|
36,590 | 13,610 | ||||||
TOTAL UTILITY PLANT
|
1,086,494 | 1,039,099 | ||||||
Less - accumulated depreciation and amortization
|
542,653 | 525,621 | ||||||
UTILITY PLANT - NET
|
543,841 | 513,478 | ||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||
Regulatory assets:
|
||||||||
Deferred fuel costs
|
4,080 | 4,080 | ||||||
Other regulatory assets
|
189,564 | 178,815 | ||||||
Other
|
5,650 | 4,154 | ||||||
TOTAL
|
199,294 | 187,049 | ||||||
TOTAL ASSETS
|
$ | 867,964 | $ | 806,035 | ||||
See Notes to Financial Statements.
|
ENTERGY NEW ORLEANS, INC.
|
||||||||
BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT LIABILITIES
|
||||||||
Currently maturing long-term debt
|
$ | 70,000 | $ | - | ||||
Accounts payable:
|
||||||||
Associated companies
|
46,572 | 27,042 | ||||||
Other
|
57,121 | 28,098 | ||||||
Customer deposits
|
21,988 | 21,878 | ||||||
Interest accrued
|
2,100 | 2,840 | ||||||
Deferred fuel costs
|
5,526 | 11,621 | ||||||
Other
|
2,729 | 4,197 | ||||||
TOTAL CURRENT LIABILITIES
|
206,036 | 95,676 | ||||||
NON-CURRENT LIABILITIES
|
||||||||
Accumulated deferred income taxes and taxes accrued
|
162,687 | 144,405 | ||||||
Accumulated deferred investment tax credits
|
1,360 | 1,539 | ||||||
Regulatory liability for income taxes - net
|
26,904 | 33,258 | ||||||
Other regulatory liabilities
|
10,211 | 5,726 | ||||||
Asset retirement cost liabilities
|
2,156 | 2,893 | ||||||
Accumulated provisions
|
21,858 | 15,843 | ||||||
Pension and other postretirement liabilities
|
67,420 | 74,017 | ||||||
Long-term debt
|
96,322 | 166,537 | ||||||
Gas system rebuild insurance proceeds
|
47,765 | 55,707 | ||||||
Other
|
8,943 | 9,489 | ||||||
TOTAL NON-CURRENT LIABILITIES
|
445,626 | 509,414 | ||||||
Commitments and Contingencies
|
||||||||
Preferred stock without sinking fund
|
19,780 | 19,780 | ||||||
COMMON EQUITY
|
||||||||
Common stock, $4 par value, authorized 10,000,000
|
||||||||
shares; issued and outstanding 8,435,900 shares in 2012
|
||||||||
and 2011
|
33,744 | 33,744 | ||||||
Paid-in capital
|
36,294 | 36,294 | ||||||
Retained earnings
|
126,484 | 111,127 | ||||||
TOTAL
|
196,522 | 181,165 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 867,964 | $ | 806,035 | ||||
See Notes to Financial Statements.
|
ENTERGY NEW ORLEANS, INC.
|
||||||||||||||||
STATEMENTS OF CHANGES IN COMMON EQUITY
|
||||||||||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited) (In Thousands)
|
||||||||||||||||
Common Equity
|
||||||||||||||||
Common Stock
|
Paid-in Capital
|
Retained Earnings
|
Total
|
|||||||||||||
Balance at December 31, 2010
|
$ | 33,744 | $ | 36,294 | $ | 118,116 | $ | 188,154 | ||||||||
Net income
|
- | - | 36,077 | 36,077 | ||||||||||||
Common stock dividends
|
- | - | (27,800 | ) | (27,800 | ) | ||||||||||
Preferred stock dividends
|
- | - | (724 | ) | (724 | ) | ||||||||||
Balance at September 30, 2011
|
$ | 33,744 | $ | 36,294 | $ | 125,669 | $ | 195,707 | ||||||||
Balance at December 31, 2011
|
$ | 33,744 | $ | 36,294 | $ | 111,127 | $ | 181,165 | ||||||||
Net income
|
- | - | 17,781 | 17,781 | ||||||||||||
Common stock dividends
|
- | - | (1,700 | ) | (1,700 | ) | ||||||||||
Preferred stock dividends
|
- | - | (724 | ) | (724 | ) | ||||||||||
Balance at September 30, 2012
|
$ | 33,744 | $ | 36,294 | $ | 126,484 | $ | 196,522 | ||||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY NEW ORLEANS, INC.
|
||||||||||||||||
SELECTED OPERATING RESULTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012
|
2011
|
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 58 | $ | 61 | $ | (3 | ) | (5 | ) | |||||||
Commercial
|
47 | 47 | - | - | ||||||||||||
Industrial
|
9 | 9 | - | - | ||||||||||||
Governmental
|
18 | 18 | - | - | ||||||||||||
Total retail
|
132 | 135 | (3 | ) | (2 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
10 | 27 | (17 | ) | (63 | ) | ||||||||||
Other
|
4 | 3 | 1 | 33 | ||||||||||||
Total
|
$ | 146 | $ | 165 | $ | (19 | ) | (12 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
579 | 620 | (41 | ) | (7 | ) | ||||||||||
Commercial
|
553 | 561 | (8 | ) | (1 | ) | ||||||||||
Industrial
|
130 | 140 | (10 | ) | (7 | ) | ||||||||||
Governmental
|
219 | 223 | (4 | ) | (2 | ) | ||||||||||
Total retail
|
1,481 | 1,544 | (63 | ) | (4 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
246 | 269 | (23 | ) | (9 | ) | ||||||||||
Non-associated companies
|
1 | 3 | (2 | ) | (67 | ) | ||||||||||
Total
|
1,728 | 1,816 | (88 | ) | (5 | ) | ||||||||||
Nine Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012 | 2011 |
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 135 | $ | 143 | $ | (8 | ) | (6 | ) | |||||||
Commercial
|
123 | 121 | 2 | 2 | ||||||||||||
Industrial
|
23 | 24 | (1 | ) | (4 | ) | ||||||||||
Governmental
|
47 | 47 | - | - | ||||||||||||
Total retail
|
328 | 335 | (7 | ) | (2 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
21 | 66 | (45 | ) | (68 | ) | ||||||||||
Other
|
12 | 13 | (1 | ) | (8 | ) | ||||||||||
Total
|
$ | 361 | $ | 414 | $ | (53 | ) | (13 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
1,398 | 1,511 | (113 | ) | (7 | ) | ||||||||||
Commercial
|
1,507 | 1,480 | 27 | 2 | ||||||||||||
Industrial
|
365 | 381 | (16 | ) | (4 | ) | ||||||||||
Governmental
|
598 | 602 | (4 | ) | (1 | ) | ||||||||||
Total retail
|
3,868 | 3,974 | (106 | ) | (3 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
436 | 867 | (431 | ) | (50 | ) | ||||||||||
Non-associated companies
|
4 | 14 | (10 | ) | (71 | ) | ||||||||||
Total
|
4,308 | 4,855 | (547 | ) | (11 | ) | ||||||||||
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$181.8
|
|
Volume/weather
|
(8.7)
|
|
Fuel recovery
|
(7.0)
|
|
Purchased power capacity
|
(5.8)
|
|
Net wholesale revenue
|
(4.2)
|
|
Reserve equalization
|
7.6
|
|
Other
|
(2.0)
|
|
2012 net revenue
|
$161.7
|
Amount
|
||
(In Millions)
|
||
2011 net revenue
|
$451.1
|
|
Purchased power capacity
|
(16.7)
|
|
Volume/weather
|
(19.9)
|
|
Fuel recovery
|
(6.1)
|
|
Reserve equalization
|
14.3
|
|
Other
|
(1.1)
|
|
2012 net revenue
|
$421.6
|
·
|
a decrease of $133.2 million in fuel cost recovery revenues primarily attributable to lower fuel rates and lower usage, offset by lower interim fuel refunds in 2012 versus 2011. Entergy Texas’s fuel and purchased power recovery mechanism is discussed in Note 2 to the financial statements in the Form 10-K. The interim fuel refunds and the PUCT approvals are discussed in Note 2 to the financial statements herein and in the Form 10-K;
|
·
|
a decrease of $33.8 million in gross wholesale revenues as a result of a decrease in sales volume to municipal and co-op customers and to affiliated customers; and
|
·
|
less favorable volume/weather, as discussed above.
|
·
|
an increase of $7.5 million in fossil-fueled generation expenses due to a greater scope of work and an additional outage in 2012 compared to 2011;
|
·
|
the amortization of $4.3 million of Hurricane Rita storm costs in accordance with a rate order from the PUCT issued in September 2012. See Note 2 to the financial statements for further discussion of the PUCT rate order;
|
·
|
an increase of $3.8 million in compensation and benefit costs primarily due to decreasing discount rates and changes in certain actuarial assumptions resulting from a recent experience study. See "
MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
" in the Form 10-K and Note 6 to the financial statements herein for further discussion of benefits costs;
|
·
|
an increase of $3.9 million in transmission expenses primarily due to higher transmission equalization expenses in 2012; and
|
·
|
$3.3 million of costs incurred in 2012 related to the planned spin-off and merger of the Utility’s transmission business.
|
2012
|
2011
|
||||
(In Thousands)
|
|||||
Cash and cash equivalents at beginning of period
|
$65,289
|
$35,342
|
|||
Cash flow provided by (used in):
|
|||||
Operating activities
|
171,985
|
105,955
|
|||
Investing activities
|
(65,518)
|
(120,682)
|
|||
Financing activities
|
(107,340)
|
20,631
|
|||
Net increase (decrease) in cash and cash equivalents
|
(873)
|
5,904
|
|||
Cash and cash equivalents at end of period
|
$64,416
|
$41,246
|
·
|
an increase in the recovery of fuel costs due to System Agreement bandwidth remedy payments of $43 million received in January 2012 as a result of receipts required to implement the FERC’s remedy in an October 2011 order for the period June-December 2005. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of the System Agreement proceedings;
|
·
|
$67.2 million of fuel cost refunds for the nine months ended September 30, 2012 compared to $73.4 million of fuel cost refunds for the nine months ended September 30, 2011. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the fuel cost refunds; and
|
·
|
a decrease of $5.9 million in pension contributions. See
"MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –
Critical Accounting Estimates
"
in the Form 10-K and Note 6 to the financial statements herein for a discussion of qualified pension and other postretirement benefits.
|
September 30,
2012
|
December 31,
2011
|
|||
Debt to capital
|
64.9%
|
65.1%
|
||
Effect of excluding the securitization bonds
|
(13.6)%
|
(14.3)%
|
||
Debt to capital, excluding securitization bonds (1)
|
51.3%
|
50.8%
|
||
Effect of subtracting cash
|
(1.8)%
|
(1.9)%
|
||
Net debt to net capital, excluding securitization bonds (1)
|
49.5%
|
48.9%
|
(1)
|
Calculation excludes the securitization bonds, which are non-recourse to Entergy Texas.
|
September 30,
2012
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|||
(In Thousands)
|
||||||
$12,981
|
$63,191
|
$20,942
|
$13,672
|
ENTERGY TEXAS, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED INCOME STATEMENTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 489,078 | $ | 556,955 | $ | 1,174,069 | $ | 1,350,262 | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operation and Maintenance:
|
||||||||||||||||
Fuel, fuel-related expenses, and
|
||||||||||||||||
gas purchased for resale
|
103,542 | 127,745 | 178,473 | 247,568 | ||||||||||||
Purchased power
|
200,483 | 222,283 | 523,208 | 613,794 | ||||||||||||
Other operation and maintenance
|
58,343 | 52,455 | 170,791 | 149,373 | ||||||||||||
Taxes other than income taxes
|
19,031 | 22,680 | 50,640 | 52,567 | ||||||||||||
Depreciation and amortization
|
23,043 | 19,823 | 64,887 | 59,059 | ||||||||||||
Other regulatory charges - net
|
23,402 | 25,159 | 50,791 | 37,816 | ||||||||||||
TOTAL
|
427,844 | 470,145 | 1,038,790 | 1,160,177 | ||||||||||||
OPERATING INCOME
|
61,234 | 86,810 | 135,279 | 190,085 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Allowance for equity funds used during construction
|
1,281 | 946 | 3,355 | 2,493 | ||||||||||||
Interest and investment income
|
(5,566 | ) | 1,374 | (2,648 | ) | 4,112 | ||||||||||
Miscellaneous - net
|
(1,520 | ) | (730 | ) | (3,164 | ) | (1,700 | ) | ||||||||
TOTAL
|
(5,805 | ) | 1,590 | (2,457 | ) | 4,905 | ||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
24,246 | 24,616 | 71,510 | 69,657 | ||||||||||||
Allowance for borrowed funds used during construction
|
(1,033 | ) | (653 | ) | (2,417 | ) | (1,721 | ) | ||||||||
TOTAL
|
23,213 | 23,963 | 69,093 | 67,936 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
32,216 | 64,437 | 63,729 | 127,054 | ||||||||||||
Income taxes
|
12,982 | 23,562 | 26,547 | 47,356 | ||||||||||||
NET INCOME
|
$ | 19,234 | $ | 40,875 | $ | 37,182 | $ | 79,698 | ||||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY TEXAS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 37,182 | $ | 79,698 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities:
|
||||||||
Depreciation and amortization
|
64,887 | 59,059 | ||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
28,140 | 51,650 | ||||||
Changes in assets and liabilities:
|
||||||||
Receivables
|
(15,544 | ) | (123,024 | ) | ||||
Fuel inventory
|
(2,650 | ) | 4,694 | |||||
Accounts payable
|
11,930 | 20,369 | ||||||
Taxes accrued
|
(8,545 | ) | (2,408 | ) | ||||
Interest accrued
|
(9,032 | ) | (8,542 | ) | ||||
Deferred fuel costs
|
11,543 | (51,985 | ) | |||||
Other working capital accounts
|
(10,244 | ) | 51,410 | |||||
Provisions for estimated losses
|
3,172 | (113 | ) | |||||
Other regulatory assets
|
72,559 | 55,428 | ||||||
Pension and other postretirement liabilities
|
(11,158 | ) | (18,260 | ) | ||||
Other assets and liabilities
|
(255 | ) | (12,021 | ) | ||||
Net cash flow provided by operating activities
|
171,985 | 105,955 | ||||||
INVESTING ACTIVITIES
|
||||||||
Construction expenditures
|
(128,199 | ) | (120,992 | ) | ||||
Allowance for equity funds used during construction
|
3,355 | 2,493 | ||||||
Change in money pool receivable - net
|
50,210 | (7,270 | ) | |||||
Remittances to transition charge account
|
(65,325 | ) | (69,607 | ) | ||||
Payments from transition charge account
|
74,441 | 74,694 | ||||||
Net cash flow used in investing activities
|
(65,518 | ) | (120,682 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of long-term debt
|
- | 74,264 | ||||||
Retirement of long-term debt
|
(49,192 | ) | (47,853 | ) | ||||
Dividends paid:
|
||||||||
Common stock
|
(57,420 | ) | (5,780 | ) | ||||
Other
|
(728 | ) | - | |||||
Net cash flow provided by (used in) financing activities
|
(107,340 | ) | 20,631 | |||||
Net increase (decrease) in cash and cash equivalents
|
(873 | ) | 5,904 | |||||
Cash and cash equivalents at beginning of period
|
65,289 | 35,342 | ||||||
Cash and cash equivalents at end of period
|
$ | 64,416 | $ | 41,246 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest - net of amount capitalized
|
$ | 77,264 | $ | 74,937 | ||||
Income taxes
|
$ | 6,000 | $ | - | ||||
See Notes to Financial Statements.
|
ENTERGY TEXAS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 1,621 | $ | 150 | ||||
Temporary cash investments
|
62,795 | 65,139 | ||||||
Total cash and cash equivalents
|
64,416 | 65,289 | ||||||
Securitization recovery trust account
|
32,099 | 41,215 | ||||||
Accounts receivable:
|
||||||||
Customer
|
83,954 | 68,290 | ||||||
Allowance for doubtful accounts
|
(912 | ) | (1,461 | ) | ||||
Associated companies
|
74,811 | 129,561 | ||||||
Other
|
12,730 | 9,573 | ||||||
Accrued unbilled revenues
|
42,287 | 41,573 | ||||||
Total accounts receivable
|
212,870 | 247,536 | ||||||
Accumulated deferred income taxes
|
56,530 | 88,436 | ||||||
Fuel inventory - at average cost
|
56,534 | 53,884 | ||||||
Materials and supplies - at average cost
|
30,983 | 29,810 | ||||||
Prepayments and other
|
19,948 | 15,203 | ||||||
TOTAL
|
473,380 | 541,373 | ||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||
Investments in affiliates - at equity
|
669 | 783 | ||||||
Non-utility property - at cost (less accumulated depreciation)
|
711 | 930 | ||||||
Other
|
18,587 | 17,969 | ||||||
TOTAL
|
19,967 | 19,682 | ||||||
UTILITY PLANT
|
||||||||
Electric
|
3,429,389 | 3,338,608 | ||||||
Construction work in progress
|
95,876 | 90,856 | ||||||
TOTAL UTILITY PLANT
|
3,525,265 | 3,429,464 | ||||||
Less - accumulated depreciation and amortization
|
1,323,423 | 1,289,166 | ||||||
UTILITY PLANT - NET
|
2,201,842 | 2,140,298 | ||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||
Regulatory assets:
|
||||||||
Regulatory asset for income taxes - net
|
128,118 | 129,924 | ||||||
Other regulatory assets (includes securitization property
of $661,097 as of September 30, 2012 and
$704,896 as of December 31, 2011)
|
1,107,312 | 1,178,067 | ||||||
Long-term receivables - associated companies
|
29,912 | 31,254 | ||||||
Other
|
18,810 | 18,408 | ||||||
TOTAL
|
1,284,152 | 1,357,653 | ||||||
TOTAL ASSETS
|
$ | 3,979,341 | $ | 4,059,006 | ||||
See Notes to Financial Statements.
|
ENTERGY TEXAS, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT LIABILITIES
|
||||||||
Accounts payable:
|
||||||||
Associated companies
|
$ | 86,418 | $ | 60,583 | ||||
Other
|
54,408 | 69,160 | ||||||
Customer deposits
|
42,170 | 38,294 | ||||||
Taxes accrued
|
31,766 | 40,311 | ||||||
Interest accrued
|
24,063 | 33,095 | ||||||
Deferred fuel costs
|
76,207 | 64,664 | ||||||
Pension and other postretirement liabilities
|
1,010 | 1,029 | ||||||
System agreement cost equalization
|
37,405 | 43,290 | ||||||
Other
|
2,530 | 4,847 | ||||||
TOTAL
|
355,977 | 355,273 | ||||||
NON-CURRENT LIABILITIES
|
||||||||
Accumulated deferred income taxes and taxes accrued
|
932,592 | 934,990 | ||||||
Accumulated deferred investment tax credits
|
18,142 | 19,339 | ||||||
Other regulatory liabilities
|
7,455 | 11,710 | ||||||
Asset retirement cost liabilities
|
4,043 | 3,870 | ||||||
Accumulated provisions
|
8,196 | 5,024 | ||||||
Pension and other postretirement liabilities
|
126,596 | 137,735 | ||||||
Long-term debt (includes securitization bonds of
$700,501 as of September 30, 2012 and
$749,673 as of December 31, 2011)
|
1,628,270 | 1,677,127 | ||||||
Other
|
18,953 | 14,583 | ||||||
TOTAL
|
2,744,247 | 2,804,378 | ||||||
Commitments and Contingencies
|
||||||||
COMMON EQUITY
|
||||||||
Common stock, no par value, authorized 200,000,000 shares;
|
||||||||
issued and outstanding 46,525,000 shares in 2012 and 2011
|
49,452 | 49,452 | ||||||
Paid-in capital
|
481,994 | 481,994 | ||||||
Retained earnings
|
347,671 | 367,909 | ||||||
TOTAL
|
879,117 | 899,355 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 3,979,341 | $ | 4,059,006 | ||||
See Notes to Financial Statements.
|
ENTERGY TEXAS, INC. AND SUBSIDIARIES
|
||||||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN COMMON EQUITY
|
||||||||||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited) (In Thousands)
|
||||||||||||||||
Common Equity
|
||||||||||||||||
Common Stock
|
Paid-in Capital
|
Retained Earnings
|
Total
|
|||||||||||||
Balance at December 31, 2010
|
$ | 49,452 | $ | 481,994 | $ | 292,844 | $ | 824,290 | ||||||||
Net income
|
- | - | 79,698 | 79,698 | ||||||||||||
Common stock dividends
|
- | - | (5,780 | ) | (5,780 | ) | ||||||||||
Balance at September 30, 2011
|
$ | 49,452 | $ | 481,994 | $ | 366,762 | $ | 898,208 | ||||||||
Balance at December 31, 2011
|
$ | 49,452 | $ | 481,994 | $ | 367,909 | $ | 899,355 | ||||||||
Net income
|
- | - | 37,182 | 37,182 | ||||||||||||
Common stock dividends
|
- | - | (57,420 | ) | (57,420 | ) | ||||||||||
Balance at September 30, 2012
|
$ | 49,452 | $ | 481,994 | $ | 347,671 | $ | 879,117 | ||||||||
See Notes to Financial Statements.
|
||||||||||||||||
ENTERGY TEXAS, INC. AND SUBSIDIARIES
|
||||||||||||||||
SELECTED OPERATING RESULTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012
|
2011
|
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 192 | $ | 233 | $ | (41 | ) | (18 | ) | |||||||
Commercial
|
98 | 114 | (16 | ) | (14 | ) | ||||||||||
Industrial
|
87 | 102 | (15 | ) | (15 | ) | ||||||||||
Governmental
|
6 | 7 | (1 | ) | (14 | ) | ||||||||||
Total retail
|
383 | 456 | (73 | ) | (16 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
92 | 76 | 16 | 21 | ||||||||||||
Non-associated companies
|
8 | 23 | (15 | ) | (65 | ) | ||||||||||
Other
|
6 | 2 | 4 | 200 | ||||||||||||
Total
|
$ | 489 | $ | 557 | $ | (68 | ) | (12 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
1,879 | 2,076 | (197 | ) | (9 | ) | ||||||||||
Commercial
|
1,267 | 1,318 | (51 | ) | (4 | ) | ||||||||||
Industrial
|
1,634 | 1,635 | (1 | ) | - | |||||||||||
Governmental
|
74 | 80 | (6 | ) | (8 | ) | ||||||||||
Total retail
|
4,854 | 5,109 | (255 | ) | (5 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
1,982 | 1,238 | 744 | 60 | ||||||||||||
Non-associated companies
|
179 | 370 | (191 | ) | (52 | ) | ||||||||||
Total
|
7,015 | 6,717 | 298 | 4 | ||||||||||||
Nine Months Ended
|
Increase/
|
|||||||||||||||
Description
|
2012 | 2011 |
(Decrease)
|
%
|
||||||||||||
(Dollars In Millions)
|
||||||||||||||||
Electric Operating Revenues:
|
||||||||||||||||
Residential
|
$ | 425 | $ | 501 | $ | (76 | ) | (15 | ) | |||||||
Commercial
|
248 | 276 | (28 | ) | (10 | ) | ||||||||||
Industrial
|
226 | 261 | (35 | ) | (13 | ) | ||||||||||
Governmental
|
17 | 18 | (1 | ) | (6 | ) | ||||||||||
Total retail
|
916 | 1,056 | (140 | ) | (13 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
201 | 205 | (4 | ) | (2 | ) | ||||||||||
Non-associated companies
|
28 | 59 | (31 | ) | (53 | ) | ||||||||||
Other
|
29 | 30 | (1 | ) | (3 | ) | ||||||||||
Total
|
$ | 1,174 | $ | 1,350 | $ | (176 | ) | (13 | ) | |||||||
Billed Electric Energy
|
||||||||||||||||
Sales (GWh):
|
||||||||||||||||
Residential
|
4,386 | 4,790 | (404 | ) | (8 | ) | ||||||||||
Commercial
|
3,342 | 3,392 | (50 | ) | (1 | ) | ||||||||||
Industrial
|
4,512 | 4,696 | (184 | ) | (4 | ) | ||||||||||
Governmental
|
209 | 222 | (13 | ) | (6 | ) | ||||||||||
Total retail
|
12,449 | 13,100 | (651 | ) | (5 | ) | ||||||||||
Sales for resale:
|
||||||||||||||||
Associated companies
|
4,145 | 3,227 | 918 | 28 | ||||||||||||
Non-associated companies
|
683 | 971 | (288 | ) | (30 | ) | ||||||||||
Total
|
17,277 | 17,298 | (21 | ) | - | |||||||||||
2012
|
2011
|
||||
(In Thousands)
|
|||||
Cash and cash equivalents at beginning of period
|
$185,157
|
$263,772
|
|||
Cash flow provided by (used in):
|
|||||
Operating activities
|
217,040
|
233,804
|
|||
Investing activities
|
(513,256)
|
(177,322)
|
|||
Financing activities
|
131,297
|
(142,564)
|
|||
Net decrease in cash and cash equivalents
|
(164,919)
|
(86,082)
|
|||
Cash and cash equivalents at end of period
|
$20,238
|
$177,690
|
·
|
an increase in construction expenditures resulting from the uprate project at Grand Gulf;
|
·
|
an increase of $114.9 million in nuclear fuel activity primarily due to the 2012 Grand Gulf refueling outage; and
|
·
|
$72.2 million of bond proceeds deposited with a trustee in September 2012. System Energy issued $250 million of 4.10% Series first mortgage bonds in September 2012 and used a portion of the proceeds to redeem, at maturity, its $70 million 6.2% Series first mortgage bonds due October 2012. The funds were held by trustee until the redemption of the bonds on October 1, 2012.
|
·
|
the issuance of $250 million of 4.10% Series first mortgage bonds in September 2012;
|
·
|
the issuance of $50 million of 4.02% Series H notes by the nuclear fuel company variable interest entity in February 2012;
|
·
|
an increase in borrowings of $62.8 million on the nuclear fuel company variable interest entity’s credit facility in 2012 compared to the repayment on borrowings of $38.3 million on the nuclear fuel company variable interest entity’s credit facility in 2011;
|
·
|
a decrease of $29.3 million in common equity dividends in 2012; and
|
·
|
the redemption of $152.975 million of pollution control revenue bonds in 2012.
|
September 30,
2012
|
December 31,
2011
|
|||
Debt to capital
|
49.8%
|
48.3%
|
||
Effect of subtracting cash
|
(0.6)%
|
(7.1)%
|
||
Net debt to net capital
|
49.2%
|
41.2%
|
September 30,
2012
|
December 31,
2011
|
September 30,
2011
|
December 31,
2010
|
|||
(In Thousands)
|
||||||
$4,103
|
$120,424
|
$73,570
|
$97,948
|
SYSTEM ENERGY RESOURCES, INC.
|
||||||||||||||||
INCOME STATEMENTS
|
||||||||||||||||
For the Three and Nine Months Ended September 30, 2012 and 2011
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
OPERATING REVENUES
|
||||||||||||||||
Electric
|
$ | 188,680 | $ | 152,431 | $ | 428,413 | $ | 409,946 | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Operation and Maintenance:
|
||||||||||||||||
Fuel, fuel-related expenses, and
|
||||||||||||||||
gas purchased for resale
|
25,538 | 19,698 | 38,976 | 58,873 | ||||||||||||
Nuclear refueling outage expenses
|
7,304 | 4,115 | 14,352 | 12,204 | ||||||||||||
Other operation and maintenance
|
38,029 | 36,493 | 105,754 | 100,336 | ||||||||||||
Decommissioning
|
8,327 | 7,752 | 24,541 | 23,568 | ||||||||||||
Taxes other than income taxes
|
5,230 | 5,312 | 16,262 | 16,525 | ||||||||||||
Depreciation and amortization
|
47,991 | 42,362 | 102,989 | 96,608 | ||||||||||||
Other regulatory credits - net
|
(2,673 | ) | (1,821 | ) | (7,096 | ) | (7,071 | ) | ||||||||
TOTAL
|
129,746 | 113,911 | 295,778 | 301,043 | ||||||||||||
OPERATING INCOME
|
58,934 | 38,520 | 132,635 | 108,903 | ||||||||||||
OTHER INCOME
|
||||||||||||||||
Allowance for equity funds used during construction
|
2,171 | 5,912 | 24,158 | 15,433 | ||||||||||||
Interest and investment income
|
2,506 | 3,054 | 8,108 | 8,103 | ||||||||||||
Miscellaneous - net
|
(146 | ) | (253 | ) | (446 | ) | (502 | ) | ||||||||
TOTAL
|
4,531 | 8,713 | 31,820 | 23,034 | ||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Interest expense
|
12,631 | 14,548 | 34,076 | 33,673 | ||||||||||||
Allowance for borrowed funds used during construction
|
(401 | ) | (1,800 | ) | (6,892 | ) | (4,716 | ) | ||||||||
TOTAL
|
12,230 | 12,748 | 27,184 | 28,957 | ||||||||||||
INCOME BEFORE INCOME TAXES
|
51,235 | 34,485 | 137,271 | 102,980 | ||||||||||||
Income taxes
|
20,619 | 20,222 | 44,751 | 47,395 | ||||||||||||
NET INCOME
|
$ | 30,616 | $ | 14,263 | $ | 92,520 | $ | 55,585 | ||||||||
See Notes to Financial Statements.
|
SYSTEM ENERGY RESOURCES, INC.
|
||||||||
STATEMENTS OF CASH FLOWS
|
||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
OPERATING ACTIVITIES
|
||||||||
Net income
|
$ | 92,520 | $ | 55,585 | ||||
Adjustments to reconcile net income to net cash flow provided by operating activities:
|
||||||||
Depreciation, amortization, and decommissioning, including nuclear fuel amortization
|
157,070 | 162,492 | ||||||
Deferred income taxes, investment tax credits, and non-current taxes accrued
|
106,167 | (53,032 | ) | |||||
Changes in assets and liabilities:
|
||||||||
Receivables
|
(8,224 | ) | (2,916 | ) | ||||
Accounts payable
|
(9,070 | ) | 1,449 | |||||
Taxes accrued and prepaid taxes
|
(63,879 | ) | 94,285 | |||||
Interest accrued
|
(1,636 | ) | (35,671 | ) | ||||
Other working capital accounts
|
(30,126 | ) | 6,928 | |||||
Other regulatory assets
|
(38,909 | ) | 53,727 | |||||
Pension and other postretirement liabilities
|
(9,375 | ) | (23,598 | ) | ||||
Other assets and liabilities
|
22,502 | (25,445 | ) | |||||
Net cash flow provided by operating activities
|
217,040 | 233,804 | ||||||
INVESTING ACTIVITIES
|
||||||||
Construction expenditures
|
(415,013 | ) | (164,013 | ) | ||||
Allowance for equity funds used during construction
|
24,158 | 15,433 | ||||||
Nuclear fuel purchases
|
(182,619 | ) | (41,717 | ) | ||||
Proceeds from the sale of nuclear fuel
|
38,413 | 12,420 | ||||||
Changes in other investments - net
|
(72,170 | ) | - | |||||
Proceeds from nuclear decommissioning trust fund sales
|
315,006 | 166,890 | ||||||
Investment in nuclear decommissioning trust funds
|
(337,352 | ) | (190,713 | ) | ||||
Changes in money pool receivable - net
|
116,321 | 24,378 | ||||||
Net cash flow used in investing activities
|
(513,256 | ) | (177,322 | ) | ||||
FINANCING ACTIVITIES
|
||||||||
Proceeds from the issuance of long-term debt
|
297,908 | - | ||||||
Retirement of long-term debt
|
(192,867 | ) | (38,161 | ) | ||||
Changes in credit borrowings - net
|
62,772 | (38,264 | ) | |||||
Dividends paid:
|
||||||||
Common stock
|
(32,750 | ) | (62,000 | ) | ||||
Other
|
(3,766 | ) | (4,139 | ) | ||||
Net cash flow provided by (used in) financing activities
|
131,297 | (142,564 | ) | |||||
Net decrease in cash and cash equivalents
|
(164,919 | ) | (86,082 | ) | ||||
Cash and cash equivalents at beginning of period
|
185,157 | 263,772 | ||||||
Cash and cash equivalents at end of period
|
$ | 20,238 | $ | 177,690 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid (received) during the period for:
|
||||||||
Interest - net of amount capitalized
|
$ | 27,667 | $ | 28,409 | ||||
Income taxes
|
$ | (3,873 | ) | $ | - | |||
See Notes to Financial Statements.
|
SYSTEM ENERGY RESOURCES, INC.
|
||||||||
BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents:
|
||||||||
Cash
|
$ | 401 | $ | 30,961 | ||||
Temporary cash investments
|
19,837 | 154,196 | ||||||
Total cash and cash equivalents
|
20,238 | 185,157 | ||||||
Accounts receivable:
|
||||||||
Associated companies
|
67,144 | 172,943 | ||||||
Other
|
4,996 | 7,294 | ||||||
Total accounts receivable
|
72,140 | 180,237 | ||||||
Materials and supplies - at average cost
|
80,983 | 86,333 | ||||||
Deferred nuclear refueling outage costs
|
41,544 | 9,479 | ||||||
Funds held on deposit
|
72,170 | - | ||||||
Prepayments and other
|
4,267 | 1,111 | ||||||
TOTAL
|
291,342 | 462,317 | ||||||
OTHER PROPERTY AND INVESTMENTS
|
||||||||
Decommissioning trust funds
|
484,188 | 423,409 | ||||||
TOTAL
|
484,188 | 423,409 | ||||||
UTILITY PLANT
|
||||||||
Electric
|
4,031,332 | 3,438,424 | ||||||
Property under capital lease
|
491,023 | 491,023 | ||||||
Construction work in progress
|
50,209 | 357,826 | ||||||
Nuclear fuel
|
271,496 | 157,967 | ||||||
TOTAL UTILITY PLANT
|
4,844,060 | 4,445,240 | ||||||
Less - accumulated depreciation and amortization
|
2,537,005 | 2,518,190 | ||||||
UTILITY PLANT - NET
|
2,307,055 | 1,927,050 | ||||||
DEFERRED DEBITS AND OTHER ASSETS
|
||||||||
Regulatory assets:
|
||||||||
Regulatory asset for income taxes - net
|
129,945 | 124,777 | ||||||
Other regulatory assets
|
321,536 | 287,796 | ||||||
Other
|
17,445 | 20,016 | ||||||
TOTAL
|
468,926 | 432,589 | ||||||
TOTAL ASSETS
|
$ | 3,551,511 | $ | 3,245,365 | ||||
See Notes to Financial Statements.
|
SYSTEM ENERGY RESOURCES, INC.
|
||||||||
BALANCE SHEETS
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
September 30, 2012 and December 31, 2011
|
||||||||
(Unaudited)
|
||||||||
2012
|
2011
|
|||||||
(In Thousands)
|
||||||||
CURRENT LIABILITIES
|
||||||||
Currently maturing long-term debt
|
$ | 181,854 | $ | 110,163 | ||||
Short-term borrowings
|
62,772 | - | ||||||
Accounts payable:
|
||||||||
Associated companies
|
5,153 | 8,032 | ||||||
Other
|
46,459 | 63,331 | ||||||
Taxes accrued
|
28,576 | 92,455 | ||||||
Accumulated deferred income taxes
|
16,082 | 3,428 | ||||||
Interest accrued
|
16,140 | 17,776 | ||||||
Other
|
2,336 | 2,591 | ||||||
TOTAL
|
359,372 | 297,776 | ||||||
NON-CURRENT LIABILITIES
|
||||||||
Accumulated deferred income taxes and taxes accrued
|
762,227 | 652,418 | ||||||
Accumulated deferred investment tax credits
|
56,638 | 57,865 | ||||||
Other regulatory liabilities
|
240,767 | 214,745 | ||||||
Decommissioning
|
469,893 | 445,352 | ||||||
Pension and other postretirement liabilities
|
130,344 | 139,719 | ||||||
Long-term debt
|
671,917 | 636,885 | ||||||
Other
|
20 | 42 | ||||||
TOTAL
|
2,331,806 | 2,147,026 | ||||||
Commitments and Contingencies
|
||||||||
COMMON EQUITY
|
||||||||
Common stock, no par value, authorized 1,000,000 shares;
|
||||||||
issued and outstanding 789,350 shares in 2012 and 2011
|
789,350 | 789,350 | ||||||
Retained earnings
|
70,983 | 11,213 | ||||||
TOTAL
|
860,333 | 800,563 | ||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 3,551,511 | $ | 3,245,365 | ||||
See Notes to Financial Statements.
|
SYSTEM ENERGY RESOURCES, INC.
|
||||||||||||
STATEMENTS OF CHANGES IN COMMON EQUITY
|
||||||||||||
For the Nine Months Ended September 30, 2012 and 2011
|
||||||||||||
(Unaudited) (In Thousands)
|
||||||||||||
Common Equity
|
||||||||||||
Common Stock
|
Retained Earnings
|
Total
|
||||||||||
Balance at December 31, 2010
|
$ | 789,350 | $ | 23,016 | $ | 812,366 | ||||||
Net income
|
- | 55,585 | 55,585 | |||||||||
Common stock dividends
|
- | (62,000 | ) | (62,000 | ) | |||||||
Balance at September 30, 2011
|
$ | 789,350 | $ | 16,601 | $ | 805,951 | ||||||
Balance at December 31, 2011
|
$ | 789,350 | $ | 11,213 | $ | 800,563 | ||||||
Net income
|
- | 92,520 | 92,520 | |||||||||
Common stock dividends
|
- | (32,750 | ) | (32,750 | ) | |||||||
Balance at September 30, 2012
|
$ | 789,350 | $ | 70,983 | $ | 860,333 | ||||||
See Notes to Financial Statements.
|
Period
|
Total Number of
Shares Purchased
|
Average Price Paid
per Share
|
Total Number of
Shares Purchased
as Part of a
Publicly
Announced Plan
|
Maximum $
Amount
of Shares that May
Yet be Purchased
Under a Plan (2)
|
||||
7/01/2012-7/31/2012
|
-
|
$-
|
-
|
$350,052,918
|
||||
8/01/2012-8/31/2012
|
-
|
$-
|
-
|
$350,052,918
|
||||
9/01/2012-9/30/2012
|
-
|
$-
|
-
|
$350,052,918
|
||||
Total
|
-
|
$-
|
-
|
(1)
|
In accordance with Entergy’s stock-based compensation plans, Entergy periodically grants stock options to key employees, which may be exercised to obtain shares of Entergy’s common stock. According to the plans, these shares can be newly issued shares, treasury stock, or shares purchased on the open market. Entergy’s management has been authorized by the Board to repurchase on the open market shares up to an amount sufficient to fund the exercise of grants under the plans. See Note 12 to the financial statements in the Form 10-K for additional discussion of the stock-based compensation plans. In addition to this authority, in October 2010 the Board granted authority for an additional $500 million share repurchase program. The amount of share repurchases under these programs may vary as a result of material changes in business results or capital spending or new investment opportunities. In addition, in the first quarter 2012, Entergy withheld 20,110 shares of its common stock at $70.62 per share to pay taxes due upon vesting of restricted stock granted as part of its long-term incentive program.
|
(2)
|
Maximum amount of shares that may yet be repurchased does not include an estimate of the amount of shares that may be purchased to fund the exercise of grants under the stock-based compensation plans.
|
Years Ended December 31,
|
|||||||||||
2011
|
2010
|
2009
|
|||||||||
As
previously
reported
|
As
corrected
|
As
previously
reported
|
As
corrected
|
As
previously
reported
|
As
corrected
|
||||||
(In Thousands)
|
|||||||||||
Income Statement
|
|||||||||||
Income taxes
|
$88,313
|
$89,736
|
$75,878
|
$92,297
|
$89,185
|
$88,951
|
|||||
Net income
|
$203,027
|
$201,604
|
$190,738
|
$174,319
|
$153,047
|
$153,281
|
|||||
Earnings applicable to
common equity
|
$202,202
|
$200,779
|
$189,911
|
$173,492
|
$152,222
|
$152,456
|
|||||
Statement of Cash Flows
|
|||||||||||
Net income
|
$203,027
|
$201,604
|
$190,738
|
$174,319
|
$153,047
|
$153,281
|
|||||
Deferred income taxes,
investment tax credits,
and non-current taxes
accrued
|
($6,268)
|
($4,845)
|
$87,920
|
$104,339
|
$138,817
|
$138,583
|
|||||
Changes in other
regulatory assets
|
($80,027)
|
($77,713)
|
$114,528
|
$141,216
|
($44,612)
|
($44,993)
|
|||||
Other operating
activities
|
($35,248)
|
($37,562)
|
$30,717
|
$4,029
|
($86,474)
|
($86,093)
|
|||||
December 31,
|
|||||||
2011
|
2010
|
||||||
As
previously
reported
|
As
corrected
|
As
previously
reported
|
As
corrected
|
||||
(In Thousands)
|
|||||||
Balance Sheet
|
|||||||
Regulatory asset for income taxes - net
|
$249,058
|
$173,724
|
$234,406
|
$161,386
|
|||
Accumulated deferred income taxes -
current
|
$5,427
|
$5,107
|
$1,749
|
$1,255
|
|||
Accumulated deferred income taxes
and taxes accrued
|
$1,397,230
|
$1,368,563
|
$1,405,374
|
$1,377,772
|
|||
Member’s equity
|
$1,439,733
|
$1,393,386
|
$1,539,517
|
$1,494,593
|
Years Ended December 31, 2011, 2010, and 2009
|
|||||||
Member’s Equity
|
Total Equity
|
||||||
As
previously
reported
|
As
corrected
|
As
previously
reported
|
As
corrected
|
||||
(In Thousands)
|
|||||||
Statement of Changes in Equity
|
|||||||
Balance at December 31, 2008
|
$1,352,408
|
$1,323,669
|
$1,332,143
|
$1,303,404
|
|||
2009 Net income
|
$153,047
|
$153,281
|
$153,047
|
$153,281
|
|||
Balance at December 31, 2009
|
$1,473,930
|
$1,445,425
|
$1,441,759
|
$1,413,254
|
|||
2010 Net income
|
$190,738
|
$174,319
|
$190,738
|
$174,319
|
|||
Balance at December 31, 2010
|
$1,539,517
|
$1,494,593
|
$1,509,213
|
$1,464,289
|
|||
2011 Net income
|
$203,027
|
$201,604
|
$203,027
|
$201,604
|
|||
Balance at December 31, 2011
|
$1,439,733
|
$1,393,386
|
$1,380,123
|
$1,333,776
|
Ratios of Earnings to Fixed Charges
|
|||||||||||
Twelve Months Ended
|
|||||||||||
December 31,
|
September 30,
|
||||||||||
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
||||||
Entergy Arkansas
|
3.19
|
2.33
|
2.39
|
3.91
|
4.31
|
3.87
|
|||||
Entergy Gulf States Louisiana
|
2.84
|
2.44
|
2.99
|
3.58
|
4.36
|
3.57
|
|||||
Entergy Louisiana
|
3.44
|
3.14
|
3.52
|
3.41
|
1.86
|
1.88
|
|||||
Entergy Mississippi
|
3.22
|
2.92
|
3.31
|
3.35
|
3.55
|
2.88
|
|||||
Entergy New Orleans
|
2.74
|
3.71
|
3.61
|
4.43
|
5.37
|
2.28
|
|||||
Entergy Texas
|
2.07
|
2.04
|
1.92
|
2.10
|
2.34
|
1.67
|
|||||
System Energy
|
3.95
|
3.29
|
3.73
|
3.64
|
3.85
|
4.53
|
Ratios of Earnings to Combined Fixed Charges
and Preferred Dividends/Distributions
|
||||||||||||
Twelve Months Ended
|
||||||||||||
December 31,
|
September 30,
|
|||||||||||
2007
|
2008
|
2009
|
2010
|
2011
|
2012
|
|||||||
Entergy Arkansas
|
2.88
|
1.95
|
2.09
|
3.60
|
3.83
|
3.43
|
||||||
Entergy Gulf States Louisiana
|
2.73
|
2.42
|
2.95
|
3.54
|
4.30
|
3.51
|
||||||
Entergy Louisiana
|
3.08
|
2.87
|
3.27
|
3.19
|
1.70
|
1.74
|
||||||
Entergy Mississippi
|
2.97
|
2.67
|
3.06
|
3.16
|
3.27
|
2.67
|
||||||
Entergy New Orleans
|
2.54
|
3.45
|
3.33
|
4.08
|
4.74
|
2.01
|
*
|
4(a) -
|
Twenty-fourth Supplemental Indenture, dated as of September 1, 2012, to System Energy Resources, Inc. Mortgage and Deed of Trust, dated as of June 15, 1977 (4.42 to Form 8-K dated September 25, 2012 in 1-09067).
|
10(a) -
|
Entergy Corporation Service Recognition Program for Non-Employee Outside Directors (As Amended and Restated effective June 1, 2012).
|
|
10(b) -
|
First Amendment to The Entergy Corporation Outside Director Stock Program Established under the 2011 Equity Ownership and Long Term Cash Incentive Plan of Entergy Corporation and Subsidiaries.
|
|
12(a) -
|
Entergy Arkansas’s Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Dividends, as defined.
|
|
12(b) -
|
Entergy Gulf States Louisiana’s Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Distributions, as defined.
|
|
12(c) -
|
Entergy Louisiana’s Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Distributions, as defined.
|
|
12(d) -
|
Entergy Mississippi’s Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Dividends, as defined.
|
|
12(e) -
|
Entergy New Orleans’s Computation of Ratios of Earnings to Fixed Charges and of Earnings to Combined Fixed Charges and Preferred Dividends, as defined.
|
|
12(f) -
|
Entergy Texas’s Computation of Ratios of Earnings to Fixed Charges, as defined.
|
|
12(g) -
|
System Energy’s Computation of Ratios of Earnings to Fixed Charges, as defined.
|
|
31(a) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Corporation.
|
|
31(b) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Corporation.
|
|
31(c) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Arkansas.
|
|
31(d) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Arkansas.
|
|
31(e) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Gulf States Louisiana.
|
|
31(f) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Gulf States Louisiana.
|
31(g) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Louisiana.
|
|
31(h) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Louisiana.
|
|
31(i) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Mississippi.
|
|
31(j) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Mississippi.
|
|
31(k) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy New Orleans.
|
|
31(l) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy New Orleans.
|
|
31(m) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Texas.
|
|
31(n) -
|
Rule 13a-14(a)/15d-14(a) Certification for Entergy Texas.
|
|
31(o) -
|
Rule 13a-14(a)/15d-14(a) Certification for System Energy.
|
|
31(p) -
|
Rule 13a-14(a)/15d-14(a) Certification for System Energy.
|
|
32(a) -
|
Section 1350 Certification for Entergy Corporation.
|
|
32(b) -
|
Section 1350 Certification for Entergy Corporation.
|
|
32(c) -
|
Section 1350 Certification for Entergy Arkansas.
|
|
32(d) -
|
Section 1350 Certification for Entergy Arkansas.
|
|
32(e) -
|
Section 1350 Certification for Entergy Gulf States Louisiana.
|
|
32(f) -
|
Section 1350 Certification for Entergy Gulf States Louisiana.
|
|
32(g) -
|
Section 1350 Certification for Entergy Louisiana.
|
|
32(h) -
|
Section 1350 Certification for Entergy Louisiana.
|
|
32(i) -
|
Section 1350 Certification for Entergy Mississippi.
|
|
32(j) -
|
Section 1350 Certification for Entergy Mississippi.
|
|
32(k) -
|
Section 1350 Certification for Entergy New Orleans.
|
|
32(l) -
|
Section 1350 Certification for Entergy New Orleans.
|
|
32(m) -
|
Section 1350 Certification for Entergy Texas.
|
|
32(n) -
|
Section 1350 Certification for Entergy Texas.
|
|
32(o) -
|
Section 1350 Certification for System Energy.
|
|
32(p) -
|
Section 1350 Certification for System Energy.
|
|
101 INS -
|
XBRL Instance Document.
|
|
101 SCH -
|
XBRL Taxonomy Extension Schema Document.
|
|
101 PRE -
|
XBRL Taxonomy Presentation Linkbase Document.
|
|
101 LAB -
|
XBRL Taxonomy Label Linkbase Document.
|
101 CAL -
|
XBRL Taxonomy Calculation Linkbase Document.
|
|
101 DEF -
|
XBRL Definition Linkbase Document.
|
*
|
Incorporated herein by reference as indicated.
|
ENTERGY CORPORATION
ENTERGY ARKANSAS, INC.
ENTERGY GULF STATES LOUISIANA, L.L.C.
ENTERGY LOUISIANA, LLC
ENTERGY MISSISSIPPI, INC.
ENTERGY NEW ORLEANS, INC.
ENTERGY TEXAS, INC.
SYSTEM ENERGY RESOURCES, INC.
|
/s/ Alyson M. Mount
Alyson M. Mount
Senior Vice President and Chief Accounting Officer
(For each Registrant and for each as
Principal Accounting Officer)
|