Entergy Reports Fourth Quarter And Full Year Earnings, Initiates 2016 Operational Earnings Guidance

Totals may not foot due to rounding

Totals may not foot due to rounding

Appendix A-1: Consolidated Earnings - Reconciliation of GAAP to Non-GAAP Measures

Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix A-3 and Appendix A-4 for details on special items)

(Per share in $)

Fourth Quarter

Year-to-Date

2015

2014

Change

2015

2014

Change

As-Reported

Utility

1.75

0.60

1.15

6.12

4.60

1.52

Parent & Other

(0.33)

(0.25)

(0.08)

(1.15)

(1.00)

(0.15)

EWC

(0.86)

0.31

(1.17)

(5.96)

1.62

(7.58)

  Consolidated As-Reported Earnings (Loss)

0.56

0.66

(0.10)

(0.99)

5.22

(6.21)

Less Special Items

Utility

-

(0.01)

0.01

-

(0.04)

0.04

Parent & Other

-

-

-

-

-

-

EWC

(1.02)

(0.08)

(0.94)

(6.99)

(0.57)

(6.42)

  Consolidated Special Items

(1.02)

(0.09)

(0.93)

(6.99)

(0.61)

(6.38)

Operational

Utility

1.75

0.61

1.14

6.12

4.64

1.48

Parent & Other

(0.33)

(0.25)

(0.08)

(1.15)

(1.00)

(0.15)

EWC

0.16

0.39

(0.23)

1.03

2.19

(1.16)

  Consolidated Operational Earnings

1.58

0.75

0.83

6.00

5.83

0.17

Weather Impact

(0.03)

0.05

(0.08)

0.19

0.07

0.12

Appendix A-2: Consolidated Operating Cash Flow

Fourth Quarter and Year-to-Date 2015 vs. 2014

($ in millions)

Fourth Quarter

Year-to-Date

2015

2014

Change

2015

2014

Change

Utility

858

1,076

(218)

2,907

3,319

(412)

Parent & Other

3

(256)

259

(78)

(463)

385

EWC

81

178

(97)

462

1,034

(572)

  Total Operating Cash Flow

942

998

(56)

3,291

3,890

(599)

Appendix A-3: Special Items by Driver (shown as positive/(negative) impact on EPS)

Fourth Quarter and Year-to-Date 2015 vs. 2014

(After-tax, per share in $)

Fourth Quarter

Year-to-Date

2015

2014

Change

2015

2014

Change

Utility

HCM implementation expenses

-

(0.01)

0.01

-

(0.04)

0.04

  Total Utility

-

(0.01)

0.01

-

(0.04)

0.04

EWC

HCM implementation expenses

-

-

-

-

(0.01)

0.01

Decisions to close VY, FitzPatrick and Pilgrim

(0.02)

(0.08)

0.06

(5.99)

(0.56)

(5.43)

Palisades asset impairment and related write-offs

(1.43)

-

(1.43)

(1.43)

-

(1.43)

Top Deer investment impairment

(0.13)

-

(0.13)

(0.13)

-

(0.13)

Gain on the sale of RISEC

0.56

-

0.56

0.56

-

0.56

  Total EWC

(1.02)

(0.08)

(0.94)

(6.99)

(0.57)

(6.42)

Total Special Items

(1.02)

(0.09)

(0.93)

(6.99)

(0.61)

(6.38)

Appendix A-4: Special Items by Income Statement Line Item (shown as positive/(negative) impact on earnings)

Fourth Quarter and Year-to-Date 2015 vs. 2014

(Pre-tax except for Income taxes - other, $ in millions)

Fourth  Quarter

Year-to-Date

2015

2014

Change

2015

2014

Change

Utility

Non-fuel O&M

-

(2.4)

2.4

-

(12.6)

12.6

Taxes other than income taxes

-

(0.1)

0.1

-

(0.6)

0.6

Income taxes - other

-

1.0

(1.0)

-

5.6

(5.6)

  Total Utility

-

(1.5)

1.5

-

(7.6)

7.6

EWC

Non-fuel O&M

(6.2)

(19.1)

12.9

(17.0)

(46.8)

29.8

Taxes other than income taxes

(0.5)

(1.4)

0.9

(0.3)

(3.6)

3.3

Asset write-off and impairments

(394.0)

(0.6)

(393.4)

(2,036.2)

(107.5)

(1,928.7)

Gain on sale of asset

154.0

-

154.0

154.0

-

154.0

Miscellaneous net (other income)

(36.8)

-

(36.8)

(36.8)

-

(36.8)

Income taxes - other

100.4

7.4

93.0

683.8

56.1

627.7

  Total EWC

(183.0)

(13.7)

(169.3)

(1,252.4)

(101.8)

(1,150.6)

Total Special Items

(183.0)

(15.2)

(167.8)

(1,252.4)

(109.4)

(1,143.0)

Totals may not foot due to rounding

Appendix B-1: As-Reported and Operational EPS Variance Analysis

Fourth Quarter 2015 vs. 2014

(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)

Utility

Parent & Other

EWC

Consolidated

As-Reported

Opera-tional

As-Reported

Opera-tional

As- Reported

Opera-tional

As- Reported

Opera-tional

2014 earnings

0.60

0.61

(0.25)

(0.25)

0.31

0.39

0.66

0.75

Income taxes - other

1.96

1.96

(a)

(0.04)

(0.04)

0.14

0.14

(b)

2.06

2.06

Non-fuel O&M

(0.01)

(0.02)

-

-

0.13

0.08

(c)

0.12

0.06

Share effect

0.03

0.03

(0.01)

(0.01)

-

-

0.02

0.02

Gain on sale of asset

-

-

-

-

0.56

-

(d)

0.56

-

Interest expense and other charges

0.01

0.01

-

-

(0.01)

(0.01)

-

-

Decommissioning expense

(0.01)

(0.01)

-

-

-

-

(0.01)

(0.01)

Depreciation/amortization expense

(0.05)

(0.05)

(e)

-

-

0.04

0.04

(0.01)

(0.01)

Taxes other than income taxes

(0.05)

(0.05)

(f)

-

-

0.02

0.01

(0.03)

(0.04)

Other income (deductions)-other

(0.02)

(0.02)

(0.03)

(0.03)

(0.14)

(0.01)

(g)

(0.19)

(0.06)

Asset write-offs and impairments

(0.19)

(0.19)

(h)

-

-

(1.43)

-

(i)

(1.62)

(0.19)

Net revenue

(0.52)

(0.52)

(j)

-

-

(0.48)

(0.48)

(k)

(1.00)

(1.00)

2015 earnings

1.75

1.75

(0.33)

(0.33)

(0.86)

0.16

0.56

1.58

Appendix B-2: As-Reported and Operational EPS Variance Analysis

Year-to-Date 2015 vs. 2014

(After-tax, per share in $, sorted in consolidated operational column, most to least favorable)

Utility

Parent & Other

EWC

Consolidated

As-Reported

Opera-tional

As-Reported

Opera-tional

As- Reported

Opera-tional

As- Reported

Opera-tional

2014 earnings

4.60

4.64

(1.00)

(1.00)

1.62

2.19

5.22

5.83

Income taxes - other

2.08

2.08

(a)

(0.07)

(0.07)

(l)

0.11

0.11

(b)

2.12

2.12

Asset write-offs and impairments

0.04

0.04

-

-

(6.97)

-

(i)

(6.93)

0.04

Other income (deductions) - other

0.01

0.01

(0.09)

(0.09)

(m)

(0.02)

0.11

(g)

(0.10)

0.03

Share effect

0.03

0.03

-

-

-

-

0.03

0.03

Gain on sale of asset

-

-

-

-

0.56

-

(d)

0.56

-

Decommissioning expense

(0.04)

(0.04)

-

-

0.01

0.01

(0.03)

(0.03)

Taxes other than income taxes

(0.12)

(0.12)

(f)

-

-

0.07

0.06

(n)

(0.05)

(0.06)

Depreciation/amortization expense

(0.19)

(0.19)

(e)

0.01

0.01

0.12

0.12

(o)

(0.06)

(0.06)

Interest expense and other charges

(0.04)

(0.04)

0.02

0.02

(0.04)

(0.04)

(0.06)

(0.06)

Non-fuel O&M

(0.57)

(0.61)

(p)

(0.01)

(0.01)

0.48

0.37

(c)

(0.10)

(0.25)

Net revenue

0.32

0.32

(j)

(0.01)

(0.01)

(1.90)

(1.90)

(k)

(1.59)

(1.59)

2015 earnings

6.12

6.12

(1.15)

(1.15)

(5.96)

1.03

(0.99)

6.00

See appendix in the webcast slide presentation for more details on the effects of the VY closure on EWC line item variances.

(a) 

The current quarter and year-to-date increases were due primarily to the income tax item of approximately $334 million resulting from the ELL business combination; this was partly offset by customer sharing recorded as a regulatory charge (included in net revenue in (j)). An audit settlement in Mississippi of $15 million also contributed to the increases. The year-to-date increase also reflected a first quarter 2015 adjustment of $24 million involving the reversal of a portion of the provision for uncertain tax provisions related to interest accrual. Partially offsetting was a state income tax item of $10 million in third quarter 2014.

(b) 

The increases in the current quarter and year-to-date periods were due largely to state tax effects from the 2015 settlement on the 2008/2009 audit.

(c) 

The current quarter and year-to-date increases were attributable to the closure of VY at the end of 2014.

(d) 

The as-reported increases in the current quarter and year-to-date periods reflect the gain on sale of the RISEC facility.

(e) 

The current quarter and year-to-date decreases were due primarily to additions to plant, including Ninemile 6 placed in service in December 2014, as well as higher depreciation rates implemented at EMI for 2015.

(f) 

The decreases in the current quarter and year-to-date periods were due partly to higher ad valorem taxes. In addition, fourth quarter 2014 results reflected the franchise tax settlement in Louisiana.

(g) 

The as-reported decrease in the current quarter was due largely to the asset impairment on EWC's 50% ownership interest in the Top Deer wind generation investment (accounted for under the equity method of accounting). The year-to-date operational increase was due primarily to higher realized gains on decommissioning trusts, including the rebalancing of VY's decommissioning trust portfolio.

(h) 

The current quarter decrease was driven by regulatory charges arising from the Waterford 3 replacement steam generator prudence review proceeding and the System Agreement termination settlement agreement. Partially offsetting was an earlier regulatory charge in 2014 for the Waterford 3 prudence review proceeding.

(i) 

The as-reported current quarter and year-to-date decreases reflected the fourth quarter 2015 non-cash impairment charges and related write-offs for the Palisades nuclear plant. The year-to date decrease also reflected third quarter 2015 impairment charges and related write-offs for the Pilgrim and FitzPatrick plants. Partially offsetting the year-to-date decrease was a third quarter 2014 charge for an updated VY decommissioning cost study.

(j) 

The current quarter decrease was attributable to the fourth quarter 2015 ELL business combination regulatory charge for customer sharing of $0.37 per share and the regulatory charge for the Waterford 3 prudence review proceeding of $0.09 per share (a portion of which is reflected in asset impairment in (h)). The effects of weather, which was milder-than-normal in the current quarter compared to colder-than-normal in fourth quarter 2014, also contributed. Weather for the full year was positive in both periods, but more favorable in 2015 compared to 2014. Annual net revenue was higher due to increased weather-adjusted sales volume and the Louisiana FRP rate adjustments for placing Ninemile 6 in rates and the EMI rate case.

(k) 

The current quarter and year-to-date decreases were largely due to the retirement of VY at the end of 2014 along with lower realized nuclear capacity and energy pricing on the operating plants.

(l) 

The decrease in the year-to-date period was primarily the result of a Louisiana tax law change effective July 1, 2015.

(m) 

The year-to-date decrease is due to the elimination of intersegment activity, primarily higher affiliate dividend income resulting from Hurricane Isaac Act 55 financing (offset at Utility).

(n) 

The increase year-to-date is attributable largely to lower VY property taxes due to the plant's closure in late 2014.

(o) 

The year-to-date increase was mainly attributable to the absence of VY depreciation. Lower depreciation expense resulting from the third quarter 2015 nuclear plant impairments also contributed.

(p) 

The year-to-date decrease reflected higher nuclear expenses, including regulatory compliance costs resulting from the NRC's decision to move ANO into Column 4 of the reactor oversight process action matrix ($53 million pre-tax). Pension and OPEB and distribution reliability expenses were also higher. Other non-fuel O&M changes with offsets in net revenue in the current and year-to date periods included transmission costs allocated by MISO and energy efficiency program costs.

Appendix C-1: Utility, Parent & Other Adjusted EPS - Reconciliation of GAAP to Non-GAAP Measures

Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix A for details on special items)

(per share in $)

Fourth Quarter

Year-to-Date

2015

2014

Change

2015

2014

Change

As-Reported Earnings

1.42

0.35

1.07

4.97

3.60

1.37

Less:

  Special Items

-

(0.01)

0.01

-

(0.04)

0.04

  Weather

(0.03)

0.05

(0.08)

0.19

0.07

0.12

  Tax Items, net of customer sharing

1.57

0.03

1.54

1.70

0.09

1.61

Adjusted Earnings (Loss)

(0.12)

0.28

(0.40)

3.08

3.48

(0.40)

Less: Regulatory Charges

(0.35)

(0.05)

(0.30)

(0.35)

(0.28)

(0.07)

Adjusted Earnings, excluding Regulatory Charges (q)

0.23

0.33

(0.10)

3.43

3.76

(0.33)

(q) 

Reflects charges for System Agreement termination settlement agreement (fourth quarter and year-to-date 2015), the Waterford 3 replacement steam generator prudence review proceeding (fourth quarter and year-to-date 2014 and fourth quarter and year-to-date 2015) and the EMI rate case settlement (2014), accounted for on multiple income statement line items.

Appendix C-2: Utility Operational Performance Measures

Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

Fourth Quarter

Year-to-Date

2015

2014

% Change

% Weather Adjusted (r)

2015

2014

% Change

GWh billed

Residential

7,385

7,770

(4.9)

1.6

36,068

35,932

0.4

Commercial

6,979

6,984

(0.1)

(0.1)

29,348

28,827

1.8

Governmental

627

599

4.7

4.2

2,514

2,428

3.5

Industrial

11,152

11,087

0.6

0.6

44,382

43,723

1.5

Total Retail Sales

26,143

26,440

(1.1)

0.8

112,312

110,910

1.3

Wholesale

1,739

3,105

(44.0)

9,274

9,462

(2.0)

Total Sales

27,882

29,545

(5.6)

121,586

120,372

1.0

Weather-adjusted GWh billed (r)

Residential

35,413

35,188

0.6

Commercial

29,022

28,907

0.4

Governmental

2,509

2,430

3.2

Industrial

44,382

43,723

1.5

Total Retail Sales

111,326

110,248

1.0

Number of electric retail customers

Residential

2,431,984

2,409,732

0.9

Commercial

348,840

345,008

1.1

Governmental

17,899

17,373

3.0

Industrial

46,572

46,177

0.9

Total Retail Customers

2,845,295

2,818,290

1.0

Net Revenue ($ millions)

1,181

1,334

(11.5)

5,829

5,735

1.6

As-reported non-fuel O&M per MWh

$24.05

$22.57

6.6

$21.06

$19.89

5.9

Operational non-fuel O&M per MWh

$24.05

$22.48

7.0

$21.06

$19.79

6.4

(r) 

The effects of weather are estimated using monthly heating degree days and cooling degree days from certain locations within each jurisdiction and comparing to "normal" weather based on 20 year historical data. The models used to estimate weather are updated periodically and subject to change.

See appendix in the webcast slide presentation for information on select regulatory cases.

Appendix D-1: EWC Operational Performance Measures

Fourth Quarter and Year-to-Date 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

Fourth Quarter

Year-to-Date

2015

2014

% Change

2015

2014

% Change

Owned capacity (MW) (s)

4,880

6,068

(19.6)

4,880

6,068

(19.6)

GWh billed

10,135

11,550

(12.3)

39,745

44,424

(10.5)

As-reported average total revenue per MWh

$45.21

$54.00

(16.3)

$51.88

$61.21

(15.2)

Adjusted average total revenue per MWh (t)

$44.83

$53.64

(16.4)

$51.49

$60.84

(15.4)

Net revenue ($ millions)

379

521

(27.3)

1,666

2,224

(25.1)

As-reported non-fuel O&M per MWh

$27.67

$27.44

0.8

$25.99

$26.39

(1.5)

Operational non-fuel O&M per MWh (u)

$27.06

$25.78

5.0

$25.57

$25.34

0.9

EWC Nuclear Fleet

Capacity factor

94%

95%

(1.1)

91%

91%

-

GWh billed

9,561

10,635

(10.1)

35,859

40,253

(10.9)

As-reported average total revenue per MWh

$44.71

$53.56

(16.5)

$51.49

$60.76

(15.3)

Adjusted average total revenue per MWh (v)

$44.31

$53.17

(16.7)

$51.07

$60.35

(15.4)

Production cost per MWh

$22.63

$26.18

(13.6)

$25.30

$26.44

(4.3)

Net revenue ($ millions)

371

506

(26.7)

1,613

2,166

(25.5)

Refueling outage days

  FitzPatrick

-

7

-

44

  Indian Point 2

-

-

-

24

  Indian Point 3

-

-

23

-

  Palisades

19

-

32

56

  Pilgrim

-

-

34

-

(s)

Fourth quarter and year-to-date 2015 exclude VY (605 MW) that was shut down in December 2014 and RISEC (583 MW) that was sold in December 2015.

(t) 

Excluding VY, $54.26/MWh and $60.65/MWh in fourth quarter and year-to-date 2014 periods, respectively.

(u) 

Excluding VY, $25.45/MWh and $24.80/MWh in fourth quarter and year-to-date 2014 periods, respectively.

(v) 

Excluding VY, $53.79/MWh and $60.07/MWh in fourth quarter and year-to-date 2014 periods, respectively.

See appendix in the webcast slide presentation for EWC hedging and price disclosures.

Appendix E: GAAP and Non-GAAP Financial Performance Measures

Fourth Quarter 2015 vs. 2014 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

For 12 months ending Dec. 31

2015

2014

Change

GAAP Measures

ROIC - as-reported

1.0%

5.6%

(4.6%)

ROE - as-reported

(1.8%)

9.6%

(11.4%)

Book value per share

$51.89

$55.83

($3.94)

End of period shares outstanding (millions)

178.4

179.2

(0.8)

Non-GAAP Measures

ROIC - operational

6.3%

6.1%

0.2%

ROE - operational

11.2%

10.7%

0.5%

As of Dec. 31 ($ in millions)

2015

2014

Change

GAAP Measures

Cash and cash equivalents

1,351

1,422

(71)

Revolver capacity

3,582

3,592

(10)

Commercial paper outstanding

422

484

(62)

Total debt

13,850

13,917

(67)

Securitization debt

775

777

(2)

Debt to capital ratio

59.1%

57.4%

1.7%

Off-balance sheet liabilities:

Debt of joint ventures - Entergy's share

77

81

(4)

Leases - Entergy's share

359

422

(63)

Power purchase agreements accounted for as leases

195

224

(29)

Total off-balance sheet liabilities

631

727

(96)

Non-GAAP Measures

Debt to capital ratio, excluding securitization debt

57.7%

56.0%

1.7%

Gross liquidity

4,933

5,014

(81)

Net debt to net capital ratio, excluding securitization debt

55.0%

53.2%

1.8%

Parent debt to total debt ratio, excluding securitization debt

21.9%

20.4%

1.5%

Debt to operational adjusted EBITDA, excluding securitization debt

4.1

3.7

0.4

Operational FFO to debt ratio, excluding securitization debt

25.7%

27.8%

Appendix F-1: Definitions

Utility Operational Performance Measures

GWh billed

Total number of GWh billed to all retail and wholesale customers

Net revenue

Operating revenue less fuel, fuel related expenses and gas purchased for resale, purchased power and other regulatory charges (credits) - net

Non-fuel O&M

Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale and purchased power

Non-fuel O&M per MWh

Non-fuel O&M per MWh of billed sales

Number of retail customers

Number of customers at end of period

EWC Operational Performance Measures

As-reported average total revenue per MWh

As-reported revenue per MWh billed, excluding revenue from investments in wind generation accounted for under the equity method of accounting

Adjusted average total revenue per MWh

As-reported average total revenue per MWh, excluding revenue from the amortization of the Palisades below-market PPA

Average revenue under contract per kW per month (applies to capacity contracts only)

Revenue on a per unit basis at which capacity is expected to be sold to third parties, given existing contract prices and/or auction awards

Average revenue per MWh on contracted volumes

Revenue on a per unit basis at which generation output reflected in contracts is expected to be sold to third parties (including offsetting positions) at the minimum contract prices and at forward market prices at a point in time, given existing contract or option exercise prices based on expected dispatch or capacity, excluding the revenue associated with the amortization of the below-market PPA for Palisades; revenue will fluctuate due to factors including market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at the time of option expiration, costs to convert firm LD to unit-contingent and other risk management costs

Bundled capacity and energy contracts

A contract for the sale of installed capacity and related energy, priced per MWh sold

Capacity contracts

A contract for the sale of the installed capacity product in regional markets managed by ISO-NE, the NYISO and MISO

Capacity factor

Normalized percentage of the period that the nuclear plants generate power

Expected sold and market total revenue per MWh

Total energy and capacity revenue on a per unit basis at which total planned generation output and capacity is expected to be sold given contract terms and market prices at a point in time, including estimates for market price changes affecting revenue received on puts, collars and call options, positive or negative basis differentials, option premiums and market prices at time of option expiration, costs to convert Firm LD to unit-contingent and other risk management costs, divided by total planned MWh of generation, excluding the revenue associated with the amortization of the Palisades below-market PPA

Firm LD

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

GWh billed

Total number of GWh billed to customers, excluding investments in wind generation accounted for under the equity method of accounting and financially-settled instruments

Appendix F-1: Definitions

EWC Operational Performance Measures (continued)

Net revenue

Operating revenue less fuel, fuel related expenses and purchased power

Non-fuel O&M

Operation and maintenance expenses excluding fuel, fuel-related expenses and gas purchased for resale, purchased power and investments in wind generation accounted for under the equity method of accounting

Non-fuel O&M per MWh

Non-fuel O&M per MWh billed

Offsetting positions

Transactions for the purchase of energy, generally to offset a Firm LD transaction

Owned capacity (MW)

Installed capacity owned and operated by EWC, including investments in wind generation accounted for under the equity method of accounting; VY (nuclear) was retired on Dec. 29, 2014, and RISEC (non-nuclear) was sold on Dec. 17, 2015

Percent of capacity sold forward

Percent of planned qualified capacity sold to mitigate price uncertainty under physical or financial transactions

Percent of planned generation under contract

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 or may not require regulatory approval or approval of transmission rights or other conditions precedent; positions that are no longer classified as hedges are netted in the planned generation under contract

Planned net MW in operation

Amount of installed capacity to generate power and/or sell capacity, assuming shutdown of Pilgrim June 1, 2019 and FitzPatrick planned for Jan. 27, 2017

Planned TWh of generation

Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming shutdown of Pilgrim June 1, 2019 and FitzPatrick planned for Jan. 27, 2017, uninterrupted normal plant operation and timely renewal of plant operating licenses at IPEC

Production cost per MWh

Fuel and non-fuel O&M expenses according to accounting standards that directly relate to the production of electricity per MWh (based on net generation), excluding special items

Refueling outage days

Number of days lost for scheduled refueling outage during the period

Unit-contingent

Transaction under which power is supplied from a specific generation asset; if the asset is on operational outage, seller is generally not liable to buyer for any damages, unless the contract specifies certain conditions such as an availability guarantee

Financial Measures – GAAP

Book value per share

End of period common equity divided by end of period shares outstanding

Debt of joint ventures - Entergy's share

Entergy's share of debt issued by business joint ventures at EWC

Debt to capital ratio

Total debt divided by total capitalization

Leases - Entergy's share

Operating leases held by subsidiaries capitalized at implicit interest rate

Revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers, including Entergy Nuclear Vermont Yankee

ROIC - as-reported

12-months rolling net income attributable to Entergy Corporation or Subsidiary (Net Income) adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

ROE - as-reported

12-months rolling Net Income divided by average common equity

Securitization debt

Debt associated with securitization bonds issued to recover storm costs from hurricanes Rita, Ike and Gustav at ETI and Hurricane Isaac at ENOI; the 2009 ice storm at EAI and investment recovery of costs associated with the cancelled Little Gypsy repowering project at ELL

Total debt

Sum of short-term and long-term debt, notes payable and commercial paper and capital leases on the balance sheet

Appendix F-1: Definitions

Financial Measures - Non-GAAP

Adjusted EBITDA

Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense and other than temporary impairment losses on decommissioning trust fund assets; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds

Adjusted EPS

As-reported earnings per share excluding special items and weather and normalizing for income tax

Debt to capital ratio, excluding securitization debt

Total debt divided by total capitalization, excluding securitization debt

Debt to EBITDA

End of period total debt excluding securitization debt divided by 12-months rolling operational adjusted EBITDA

FFO

Net cash flow provided by operations less AFUDC-borrowed funds, working capital items in operating cash flow (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charge

FFO to debt

12-months rolling operational FFO as a percentage of end of period total debt excluding securitization debt

Gross liquidity

Sum of cash and revolver capacity

Operational adjusted EBITDA

Adjusted EBITDA excluding effects of special items

Operational earnings

As-reported Net Income adjusted to exclude the impact of special items

Operational FFO

FFO excluding effects of special items

Parent debt to total debt

End of period Entergy Corporation debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of total debt excluding securitization debt

Net debt to net capital ratio, excluding securitization debt

Total debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, excluding securitization debt

ROIC - operational

12-months rolling operational Net Income adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

ROE - operational

12-months rolling operational Net Income divided by average common equity

Appendix F-2: Abbreviations and Acronyms

AFUDC-

borrowed funds

Allowance for borrowed funds used during construction

LPSC

Louisiana Public Service Commission

LTM

Last twelve months

MISO

Midcontinent Independent System Operator, Inc.

AFUDC-

equity funds

Allowance for equity funds used during

   construction

MPSC

Mississippi Public Service Commission

NEPOOL

New England Power Pool

ADIT

Accumulated deferred income taxes

Ninemile 6

Ninemile Point Unit 6

ANO

Arkansas Nuclear One (nuclear)

NOAA

National Oceanic and Atmosphere Administration

APSC

Arkansas Public Service Commission

Non-fuel O&M

Non-fuel operation and maintenance expense

ARO

Asset retirement obligation

NRC

Nuclear Regulatory Commission

BP

Basis point

NYISO

New York Independent System Operator, Inc.

CCGT

Combined cycle gas turbine

NYPA

New York Power Authority

CCNO

Council of the City of New Orleans, Louisiana

NYS

New York State

COD

Commercial operation date

Cooper

Cooper Nuclear Station

NYSDOS

New York State Department of State

CT

Simple cycle combustion turbine

NYSE

New York Stock Exchange

CZM

Coastal zone management

O&M

Operation and maintenance expense

DCRF

Distribution cost recovery factor

OCF

Operating cash flow

DOJ

U.S. Department of Justice

OPEB

Other post-employment benefits

EAI

Entergy Arkansas, Inc.

Palisades

Palisades Power Plant (nuclear)

EBITDA

Earnings before interest, income taxes, depreciation and amortization

Pilgrim

Pilgrim Nuclear Power Station (nuclear)

EEI

Edison Electric Institute

EGSL

Entergy Gulf States Louisiana, L.L.C.

ELL

Entergy Louisiana, LLC

PPA

Power purchase agreement

EMI

Entergy Mississippi, Inc.

PUCT

Public Utility Commission of Texas

ENOI

Entergy New Orleans, Inc.

RFO

Refueling outage

ESI

Entergy Services, Inc.

RFP

Request for proposal

EPS

Earnings per share

RISEC

Rhode Island State Energy Center (CCGT)

ETI

Entergy Texas, Inc.

ROE

Return on equity

ETR

Entergy Corporation

ROIC

Return on invested capital

EWC

Entergy Wholesale Commodities

ROS

Rest of state

FCA

Forward capacity auction

RPCE

Rough production cost equalization

FERC

Federal Energy Regulatory Commission

SEC

U.S. Securities and Exchange Commission

FFO

Funds from operations

SEMARI

Southeast Massachusetts/Rhode Island

Firm LD

Firm liquidated damages

SERI

System Energy Resources, Inc.

FitzPatrick

James A. FitzPatrick Nuclear Power Plant

SPDES

State Pollutant Discharge Elimination System

FRP

Formula rate plan

SPP

Southwest Power Pool

GAAP

Generally accepted accounting principles

TCRF

Transmission cost recovery factor

Grand Gulf

Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy

Top Deer

Top Deer Wind Ventures, LLC

HCM

Human Capital Management program

Union

Union Power Station

HSR

Hart-Scott-Rodino

UP&O

Utility, Parent & Other

Indian Point 2

Indian Point Energy Center Unit 2 (nuclear)

VY

Vermont Yankee Nuclear Power Station (nuclear)

Indian Point 3

Indian Point Energy Center Unit 3 (nuclear)

WACC

Weighted-average cost of capital

IPEC

Indian Point Energy Center (nuclear)

WOTAB

West of the Atchafalaya Basin

ISES

Independence Steam Electric Station (coal)

Waterford 3

Unit No. 3 (nuclear) of the Waterford Steam Electric Station, 100% owned or leased by Entergy Louisiana

ISO-NE

ISO New England

WQC

Water Quality Certification

LHV

Lower Hudson Valley

YOY

Year-over-year

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - Utility and EWC Non-fuel O&M per MWh, EWC and EWC Nuclear Average Total Revenue per MWh

($ in thousands except where noted)

Fourth Quarter

Year-to-Date

2015

2014

2015

2014

Utility

As-reported Utility non-fuel O&M

(A)

670,638

666,742

2,560,620

2,394,621

Special Items included in non-fuel O&M:

  HCM implementation expenses

-

2,423

-

12,625

     Total special items included in non-fuel O&M

(B)

-

2,423

-

12,625

Operational Utility non-fuel O&M

(A-B)

670,638

664,319

2,560,620

2,381,996

Utility billed sales (GWh)

(C)

27,882

29,545

121,586

120,372

As-reported Utility non-fuel O&M per MWh

(A/C)

24.05

22.57

21.06

19.89

Operational Utility non-fuel O&M per MWh

[(A-B)/(C)]

24.05

22.48

21.06

19.79

EWC

As-reported EWC non-fuel O&M

(D)

280,425

316,917

1,033,144

1,172,339

Special Items included in non-fuel O&M:

 Decisions to close VY, FitzPatrick and Pilgrim

6,205

18,402

16,979

43,516

  HCM implementation expenses

-

736

-

3,261

     Total special items included in non-fuel O&M

(E)

6,205

19,138

16,979

46,777

Operational EWC non-fuel O&M

(D-E)

274,220

297,779

1,016,165

1,125,562

EWC billed sales (GWh)

(F)

10,135

11,550

39,745

44,424

As-reported EWC non-fuel O&M per MWh

(D/F)

27.67

27.44

25.99

26.39

Operational EWC non-fuel O&M per MWh

[(D-E)/(F)]

27.06

25.78

25.57

25.34

As-reported EWC operating revenue

(G)

458,184

623,652

2,061,827

2,719,404

Less Palisades below-market PPA amortization

(H)

3,800

4,124

15,200

16,496

Adjusted EWC operating revenue

(G-H)

454,384

619,528

2,046,627

2,702,908

As-reported EWC nuclear operating revenue

(I)

427,447

569,581

1,846,508

2,445,695

Less Palisades below-market PPA amortization

(H)

3,800

4,124

15,200

16,496

Adjusted EWC nuclear operating revenue

(I-H)

423,647

565,457

1,831,308

2,429,199

As-reported EWC average total revenue per MWh

(G)/(F)

45.21

54.00

51.88

61.21

Adjusted EWC average total revenue per MWh

[(G-H)/(F)]

44.83

53.64

51.49

60.84

EWC nuclear billed sales (GWh)

(J)

9,561

10,635

35,859

40,253

As-reported EWC nuclear average total revenue per MWh

(I)/(J)

44.71

53.56

51.49

60.76

Adjusted EWC nuclear average total revenue per MWh

[(I-H)/(J)]

44.31

53.17

51.07

60.35

VY operational non-fuel O&M

(K)

32,054

149,527

VY operating revenue

(L)

52,981

315,293

VY billed sales

(M)

1,108

5,061

Operational EWC non-fuel O&M per MWh excluding VY

[(D-E)-(K)]/[(F)-(M)]

25.45

24.80

Adjusted EWC average total revenue per MWh excluding VY

[(G-H)-(L)]/(F)-(M)]

54.26

60.65

Adjusted EWC nuclear average total revenue per MWh excluding VY

[(I-H)-(L)]/(J)-(M)]

53.79