ETR Entergy Corp

Consolidated Earnings (GAAP and Non-GAAP Measures)

First Quarter 2017 vs. 2016 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of special items)

First Quarter

2017

2016

Change

As-Reported Earnings ($ in millions)

82.6

230.0

(147.4)

Less Special Items

(95.1)

(12.9)

(82.2)

Operational Earnings

177.7

242.8

(65.1)

Estimated Weather Impact (after-tax)

(29.2)

(25.4)

(3.8)

As-Reported Earnings (per share in $)

0.46

1.28

(0.82)

Less Special Items

(0.53)

(0.07)

(0.46)

Operational Earnings

0.99

1.35

(0.36)

Estimated Weather Impact

(0.16)

(0.14)

(0.02)

Totals may not foot due to rounding

Totals may not foot due to rounding

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

First Quarter 2017 vs. 2016

First Quarter

2017

2016

Change

(Pre-tax except for income tax effects and total, $ in millions)

EWC

EWC Nuclear plant impairments and costs associated with decisions to close or sell plants

(230.9)

(19.9)

(211.0)

Gain on the sale of FitzPatrick

16.3

-

16.3

Income tax effect on adjustments above (a)

75.1

7.0

68.1

Income tax benefit resulting from FitzPatrick transaction

44.5

-

44.5

Total EWC

(95.1)

(12.9)

(82.2)

Total special items

(95.1)

(12.9)

(82.2)

(After-tax, per share in $) (b)

EWC

EWC Nuclear plant impairments and costs associated with decisions to close or sell plants

(0.84)

(0.07)

(0.77)

Gain on the sale of FitzPatrick

0.06

-

0.06

Income tax benefit resulting from FitzPatrick transaction

0.25

-

0.25

Total EWC

(0.53)

(0.07)

(0.46)

Total special items

(0.53)

(0.07)

(0.46)

Totals may not foot due to rounding

(a) 

Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply

(b) 

EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply to each adjustment and then dividing by the fully diluted average shares outstanding for the period

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

First Quarter 2017 vs. 2016

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

First Quarter

2017

2016

Change

EWC

Net revenue

90.6

-

90.6

Non-fuel O&M

(120.3)

(11.5)

(108.8)

Taxes other than income taxes

(4.1)

(1.0)

(3.1)

Asset write-off and impairments

(211.8)

(7.4)

(204.4)

Gain on sale of assets

16.3

-

16.3

Miscellaneous net (other income)

14.6

-

14.6

Income taxes (c)

119.6

7.0

112.6

Total EWC

(95.1)

(12.9)

(82.2)

Total special items (after-tax)

(95.1)

(12.9)

(82.2)

Totals may not foot due to rounding

(c) 

Income taxes include the income tax effect of the special items which were calculated using the estimated income tax rate that is expected to apply to each item as well as an income tax benefit which resulted from the FitzPatrick transaction

Appendix B: As-Reported and Operational EPS Variance Analysis (d)

First Quarter 2017 vs. 2016

(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

2016 earnings

1.09

1.09

(0.25)

(0.25)

0.44

0.51

1.28

1.35

Other income (deductions)-other

0.03

0.03

-

-

0.11

0.06

(e)

0.14

0.09

Preferred dividend requirements

0.01

0.01

-

-

-

-

0.01

0.01

Interest expense and other charges

0.02

0.02

(0.01)

(0.01)

-

-

0.01

0.01

Asset write-offs and impairments

-

-

-

-

(0.74)

-

(f)

(0.74)

-

Gain on sale of assets

-

-

-

-

0.06

-

(g)

0.06

-

Taxes other than income taxes

(0.03)

(0.03)

-

-

0.01

0.02

(0.02)

(0.01)

Depreciation/ amortization expense

(0.05)

(0.05)

(h)

-

-

0.01

0.01

(0.04)

(0.04)

Non-fuel O&M

(0.20)

(0.20)

(i)

-

-

(0.25)

0.15

(j)

(0.45)

(0.05)

Income taxes – other

(0.04)

(0.04)

(0.04)

(0.04)

0.26

0.01

(k)

0.18

(0.07)

Net revenue

0.10

0.10

(l)

-

-

0.10

(0.23)

(m)

0.20

(0.13)

Decommissioning expense

(0.01)

(0.01)

-

-

(0.16)

(0.16)

(n)

(0.17)

(0.17)

2017 earnings

0.92

0.92

(0.30)

(0.30)

(0.16)

0.37

0.46

0.99

Totals may not foot due to rounding

(d) 

EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and then dividing by the fully diluted average shares outstanding for the period; income taxes – other represents income tax differences other than the tax effect of individual line items.

(e) 

The increase was driven largely by realized earnings on decommissioning trust funds. Approximately 5 cents, classified as special item, was from gains on the receipt of nuclear decommissioning trust funds from NYPA in January 2017.

(f) 

The decrease was due to an increase in impairments recorded for refueling outage costs, nuclear fuel purchases and capital expenditures (classified as special items and excluded from operational results).

(g) 

The increase was due to a gain on the sale of FitzPatrick (classified as a special item and excluded from operational results).

(h) 

The decrease was due largely to additions to plant in service, including the Union Power Station acquired in March 2016.

(i) 

The decrease was due to several drivers. In first quarter 2016, EAI recorded a deferral for $18 million (pre-tax) for previously-expensed costs related to post Fukushima and flood barrier compliance. Fossil spending was higher for Union expenses (Union was acquired in March 2016) and overall higher scope of work. Compensation and benefits expense increased due partly to a revision to estimated incentive compensation expense in first quarter 2016. Expense associated with loss reserves also increased. Spending for nuclear operations was higher, but was largely offset by lower spending associated with regulatory compliance costs at ANO.

(j) 

The as-reported decrease reflected higher expenses related to the agreement to sell FitzPatrick and other costs which resulted from decisions to close or sell EWC's nuclear plants (classified as a special item and excluded from operational results). Partially offsetting was lower refueling outage expense, which was affected by impairments.

(k) 

The as-reported increase resulted from the re-determination of FitzPatrick's tax basis as a result of the sale of the plant (classified as a special item and excluded from operational results).

(l) 

The increase reflected full-quarter effects from the first quarter 2016 EAI rate case and rate actions associated with the Union acquisition (a portion of those increases was for Union operating expenses) as well as EAI's FRP rate increase in 2017. EMI's 2016 FRP and ETI's TCRF rate changes also contributed. In addition, in first quarter 2016 EAI recorded a charge to reflect the estimated impact from a FERC order on opportunity sales case. Partially offsetting was lower volume, including the effects of weather.

(m) 

The as-reported increase included cost reimbursements from the buyer related to the FitzPatrick sale (classified as special items and excluded from operational results). Operational revenue from FitzPatrick was also lower. Pricing for nuclear assets was also a factor in the decline. Partially offsetting was lower fuel expense, which was affected by impairments.

(n) 

The decrease resulted primarily from the establishment of decommissioning liabilities at Indian Point 3 and FitzPatrick in August 2016 (resulted from agreement with NYPA to transfer decommissioning liabilities and associated trusts to Entergy). Revisions to the estimated decommissioning cost liabilities for Indian Point and Palisades in the fourth quarter 2016 also contributed to the decrease.

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

First Quarter 2017 vs. 2016 (See Appendix A for details on special items)

First Quarter

2017

2016

Change

($ in millions)

Utility as-reported earnings

164.7

194.9

(30.2)

Parent & Other as-reported earnings (loss)

(54.4)

(44.0)

(10.4)

UP&O as-reported earnings

110.3

151.0

(40.6)

Less:

Special items

-

-

-

Weather

(47.5)

(41.3)

(6.2)

Tax effect of weather (o)

18.3

15.9

2.4

Estimated weather impact (after-tax)

(29.2)

(25.4)

(3.8)

Other income tax items

(9.4)

6.0

(15.4)

UP&O adjusted earnings

148.9

170.3

(21.4)

(After tax, per share in $)

UP&O as-reported earnings

0.62

0.84

(0.22)

Less:

Special items

-

-

-

Weather

(0.16)

(0.14)

(0.02)

Other income tax items

(0.05)

0.03

(0.08)

UP&O adjusted earnings

0.83

0.95

(0.12)

Totals may not foot due to rounding

(o) 

Income tax effect is calculated by multiplying the pre-tax amount by the estimated income tax rates that are expected to apply to those adjustments

Appendix C-2: Utility Operational and Financial Measures

First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

First Quarter

2017

2016

%

Change

% Weather
Adjusted (p)

GWh billed

Residential

7,637

8,137

(6.1)

(4.2)

Commercial

6,439

6,511

(1.1)

(1.7)

Governmental

593

600

(1.1)

(1.6)

Industrial

11,117

11,055

0.6

0.6

Total retail sales

25,786

26,303

(2.0)

(1.6)

Wholesale

3,022

3,140

(3.8)

Total sales

28,808

29,443

(2.2)

Number of electric retail customers

Residential

2,469,879

2,443,022

1.1

Commercial

355,138

350,136

1.4

Governmental

18,229

17,686

3.1

Industrial

41,043

40,823

0.5

Total retail customers

2,884,289

2,851,667

1.1

Net revenue ($ in millions)

1,404

1,375

2.1

Non-fuel O&M per MWh

20.97

$18.56

13.0

Appendix C-3: Utility Operational Measures

Last Twelve Months Retail Sales

First Quarter

2017

2016

%

Change

% Weather
Adjusted (p)

GWh billed

Residential

34,612

34,773

(0.5)

(1.1)

Commercial

29,125

29,138

-

(0.9)

Governmental

2,540

2,522

0.7

0.6

Industrial

45,801

45,031

1.7

1.7

Total retail sales

112,078

111,463

0.6

0.1

Totals may not foot due to rounding

(p) 

The effects of weather were 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.

Appendix D-1: EWC Operational Adjusted EBITDA - Reconciliation of GAAP to Non-GAAP Measures

First Quarter 2017 vs. 2016

($ in millions)

First Quarter

2017

2016

Change

Net income (loss)

(27)

80

(107)

Add back: interest expense

6

6

-

Add back: income taxes

(78)

52

(130)

Add back: depreciation and amortization

53

56

(3)

Subtract: interest and investment income

43

27

16

Add back: decommissioning expense

75

31

44

Adjusted EBITDA

(15)

199

(214)

Add back pre-tax special items for:

EWC Nuclear plant impairments and costs associated with decisions to close or sell plants

231

20

211

Gain on the sale of FitzPatrick

(16)

-

(16)

Operational adjusted EBITDA

200

219

(19)

Totals may not foot due to rounding

Appendix D-2: EWC Operational and Financial Measures

First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

First Quarter

2017

2016

% Change

Owned capacity (MW) (q)

4,800

4,880

(1.6)

GWh billed

8,363

9,246

(9.6)

As-reported net revenue ($ in millions)

494

466

6.0

Operational net revenue ($ in millions)

404

466

(13.3)

EWC Nuclear Fleet

Capacity factor

80%

90%

(11.1)

GWh billed

7,835

8,688

(9.8)

Production cost per MWh

$23.00

$21.91

5.0

Average energy and capacity revenue per MWh (r)

$55.15

$56.16

(1.8)

As-reported net revenue ($ in millions)

491

464

5.8

Operational net revenue ($ in millions)

401

464

(13.6)

Refueling outage days

FitzPatrick

42

-

Indian Point 2

-

25

Indian Point 3

19

-

(q) 

Investments in wind generation were sold in November 2016; includes FitzPatrick, which was sold on 3/31/17

(r) 

Average energy and capacity revenue per MWh excluding FitzPatrick was $55.27 in first quarter 2017 and $63.45 in first quarter 2016

Appendix E: GAAP and Non-GAAP Financial Measures

First Quarter 2017 vs. 2016 (See Appendix G for reconciliation of GAAP to non-GAAP measures)

For 12 months ending March 31

2017

2016

Change

GAAP Measures

ROIC - as-reported

(1.3%)

0.7%

(2.0%)

ROE - as-reported

(8.4%)

(2.5%)

(5.9%)

Book value per share

$44.90

$52.38

($7.48)

End of period shares outstanding (millions)

179.4

178.7

0.7

Non-GAAP Measures

ROIC - operational

6.7%

5.8%

0.9%

ROE - operational

13.9%

10.4%

3.5%

As of March 31 ($ in millions)

2017

2016

Change

GAAP Measures

Cash and cash equivalents

1,083

1,092

(9)

Revolver capacity

4,185

3,794

391

Commercial paper

1,088

578

510

Total debt

15,611

15,092

519

Securitization debt

637

752

(115)

Debt to capital

65.4%

60.9%

4.5%

Off-balance sheet liabilities:

Debt of joint ventures - Entergy's share

71

77

(6)

Leases - Entergy's share

397

359

38

Power purchase agreements accounted for as leases

166

195

(29)

Total off-balance sheet liabilities

634

631

3

Non-GAAP Measures

Debt to capital, excluding securitization debt

64.4%

59.7%

4.7%

Gross liquidity

5,268

4,886

382

Net debt to net capital, excluding securitization debt

62.7%

57.8%

4.9%

Parent debt to total debt, excluding securitization debt

21.1%

19.5%

1.6%

Debt to operational adjusted EBITDA, excluding securitization debt

4.4x

4.6x

(0.2x)

Operational FFO to debt, excluding securitization debt

17.3%

21.0%

(3.7%)

Appendix F-1: Definitions

Utility Operational and Financial Measures

GWh billed

Total number of GWh billed to 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 and Financial Measures

Average revenue under contract per kW-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 New England, 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

Appendix F-1: Definitions

EWC Operational and Financial Measures (continued)

GWh billed

Total number of GWh billed to customers and financially-settled instruments (does not include amounts from investment in wind generation that was accounted for under the equity method of accounting and which was sold in November 2016)

Net revenue

Operating revenue less fuel, fuel-related expenses and purchased power

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; investment in wind generation was sold in November 2016

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 intent to shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021)

Planned TWh of generation

Amount of output expected to be generated by EWC resources considering plant operating characteristics and outage schedules, assuming intent to shutdown Pilgrim (May 31, 2019), Palisades (Oct. 1, 2018), Indian Point 2 (April 30, 2020) and Indian Point 3 (April 30, 2021)

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 a scheduled refueling and maintenance outage during the period

Unit-contingent

Transaction under which power is supplied from a specific generation asset; if the asset is in 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 adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

ROE - as-reported

12-months rolling net income attributable to Entergy Corporation 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

Appendix F-1: Definitions

Financial Measures - Non-GAAP

Total debt

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

Adjusted EBITDA

Earnings before interest, depreciation and amortization and income taxes excluding decommissioning expense; for Entergy consolidated, also excludes AFUDC-equity funds and subtracts securitization proceeds

Adjusted EPS

As-reported EPS 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 operational adjusted EBITDA, excluding securitization debt

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

FFO

OCF less AFUDC-borrowed funds, working capital items in OCF (receivables, fuel inventory, accounts payable, prepaid taxes and taxes accrued, interest accrued and other working capital accounts) and securitization regulatory charges

Operational FFO to debt, excluding securitization 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 EPS

As-reported EPS adjusted to exclude the impact of special items

Operational FFO

FFO excluding effects of special items

Parent debt to total debt ratio, excluding securitization 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 attributable to Entergy Corporation adjusted for preferred dividends and tax-effected interest expense divided by average invested capital

ROE - operational

12-months rolling operational net income attributable to Entergy Corporation divided by average common equity

ADIT

Accumulated deferred income taxes

LPSC

Louisiana Public Service Commission

AFUDC -

Allowance for borrowed funds used during

LTM

Last twelve months

borrowed funds

construction

Michigan PSC

Michigan Public Service Commission

AFUDC -

Allowance for equity funds used during

MISO

Midcontinent Independent System Operator, Inc.

equity funds

construction

Moody's

Moody's Investor Service

ALJ

Administrative law judge

MPSC

Mississippi Public Service Commission

AMI

Advanced metering infrastructure

MTEP

MISO Transmission Expansion Planning

ANO

Arkansas Nuclear One (nuclear)

Nelson 6

Unit 6 of Roy S. Nelson plant (coal)

APSC

Arkansas Public Service Commission

NEPOOL

New England Power Pool

ARO

Asset retirement obligation

Ninemile 6

Ninemile Point Unit 6

ASLB

Atomic Safety and Licensing Board

Non-fuel O&M

Non-fuel operation and maintenance expense

CCGT

Combined cycle gas turbine

NDT

Nuclear decommissioning trust

CCNO

Council of the City of New Orleans, Louisiana

NRC

Nuclear Regulatory Commission

COD

Commercial operation date

NYISO

New York Independent System Operator, Inc.

Cooper

Cooper Nuclear Station

NYS

New York State

CT

Simple cycle combustion turbine

NYSDEC

New York State Department of Environmental

CZM

Coastal zone management

Conservation

DCRF

Distribution cost recovery factor

NYSDOS

New York State Department of State

DOE

U.S. Department of Energy

NYPA

New York Power Authority

EAI

Entergy Arkansas, Inc.

NYSE

New York Stock Exchange

EBITDA

Earnings before interest, income taxes,

O&M

Operation and maintenance expense

depreciation and amortization

OCF

Net cash flow provided by operating activities

EGSL

Entergy Gulf States Louisiana, L.L.C.

OPEB

Other post-employment benefits

ELL

Entergy Louisiana, LLC

Palisades

Palisades Power Plant (nuclear)

EMI

Entergy Mississippi, Inc.

PDSAR

Post-Shutdown Decommissioning Activities Report

ENOI

Entergy New Orleans, Inc.

Pilgrim

Pilgrim Nuclear Power Station (nuclear)

ENVY

Entergy Nuclear Vermont Yankee

PPA

Power purchase agreement or purchased power

ESI

Entergy Services, Inc.

agreement

EPS

Earnings per share

PUCT

Public Utility Commission of Texas

ETI

Entergy Texas, Inc.

RFP

Request for proposal

ETR

Entergy Corporation

RISEC

Rhode Island State Energy Center (CCGT)

EWC

Entergy Wholesale Commodities

ROE

Return on equity

FCA

Forward Capacity Auction

ROIC

Return on invested capital

FERC

Federal Energy Regulatory Commission

RPCE

Rough production cost equalization

FFO

Funds from operations

RS Cogen

RS Cogen facility (CCGT cogen)

Firm LD

Firm liquidated damages

RSP

Rate Stabilization Plan (ELL Gas)

FitzPatrick

James A. FitzPatrick Nuclear Power Plant

SEC

U.S. Securities and Exchange Commission

(nuclear, sold March 31, 2017)

SERI

System Energy Resources, Inc.

FRP

Formula rate plan

SPDES

State Pollutant Discharge Elimination System

GAAP

U.S. generally accepted accounting principles

TCRF

Transmission cost recovery factor

Grand Gulf

Unit 1 of Grand Gulf Nuclear Station (nuclear),

Top Deer

Top Deer Wind Ventures, LLC

90% owned or leased by System Energy

Union

Union Power Station (CCGT)

Indian Point 1

Indian Point Energy Center Unit 1 (nuclear)

UP&O

Utility, Parent & Other

Indian Point 2

Indian Point Energy Center Unit 2 (nuclear)

VPSB

Vermont Public Service Board

Indian Point 3

Indian Point Energy Center Unit 3 (nuclear)

VY

Vermont Yankee Nuclear Power Station (nuclear)

IPEC

Indian Point Energy Center (nuclear)

WACC

Weighted-average cost of capital

ISO

Independent system operator

WQC

Water Quality Certification

ISES

Independence Steam Electric Station (coal)

YOY

Year-over-year

LHV

Lower Hudson Valley

Appendix G-1: Reconciliation of GAAP to Non-GAAP Financial Measures - EWC Operational Net Revenue

($ in thousands except where noted)

First Quarter

2017

2016

As-reported net revenue

(A)

494

466

Special items included in net revenue:

EWC Nuclear costs associated with decisions to close or sell plants

91

-

Total special items included in net revenue

(B)

404

466

Operational net revenue

(A-B)

EWC Nuclear

As-reported EWC Nuclear net revenue

(C)

491

464

Special items included in EWC Nuclear net revenue:

EWC Nuclear costs associated with decisions to close or sell plants

91

-

Total special items included in EWC Nuclear net revenue

(D)

401

464

Operational EWC Nuclear net revenue

(C-D)

Totals may not foot due to rounding

Appendix G-2: Reconciliation of GAAP to Non-GAAP Financial Measures - ROIC, ROE

($ in millions except where noted)

First Quarter

2017

2016

As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months

(A)

(731)

(245)

Preferred dividends

17

20

Tax effected interest expense

409

398

As-reported net income (loss) attributable to Entergy Corporation, rolling 12 months adjusted for preferred dividends and tax effected interest expense

(B)

(305)

173

Special items in prior quarters

(1,842)

(1,248)

EWC Nuclear plant impairments and costs associated with decisions to close or sell plants

(150)

(13)

Gain on the sale of FitzPatrick

11

-

Income tax benefit resulting from FitzPatrick transaction

45

-

Total special items, rolling 12 months

(C)

(1,937)

(1,261)

Operational earnings, rolling 12 months adjusted for preferred dividends and tax effected interest expense

(B-C)

1,632

1,434

Operational earnings, rolling 12 months

(A-C)

1,206

1,016

Average invested capital

(D)

24,321

24,627

Average common equity

(E)

8,709

9,747

ROIC - as-reported

(B/D)

(1.3%)

0.7%

ROIC - operational

[(B-C)/D]

6.7%

5.8%

ROE - as-reported

(A/E)

(8.4%)

(2.5)%

ROE - operational

[(A-C)/E]

13.9%

10.4%

Totals may not foot due to rounding

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt

($ in millions except where noted)

First Quarter

2017

2016

Total debt

(A)

15,611

15,092

Less securitization debt

(B)

637

752

Total debt, excluding securitization debt

(C)

14,974

14,340

Less cash and cash equivalents

(D)

1,083

1,092

Net debt, excluding securitization debt

(E)

13,891

13,248

Total capitalization

(F)

23,871

24,771

Less securitization debt

(B)

637

752

Total capitalization, excluding securitization debt

(G)

23,234

24,019

Less cash and cash equivalents

(D)

1,083

1,092

Net capital, excluding securitization debt

(H)

22,151

22,927

Debt to capital

(A/F)

65.4%

60.9%

Debt to capital, excluding securitization debt

(C/G)

64.4%

59.7%

Net debt to net capital, excluding securitization debt

(E/H)

62.7%

57.8%

Revolver capacity

(I)

4,185

3,794

Gross liquidity

(D+I)

5,268

4,886

Entergy Corporation notes:

Due January 2017

-

500

Due September 2020

450

450

Due July 2022

650

650

Due September 2026

750

-

Total parent long-term debt

(J)

1,850

1,600

Revolver draw

(K)

225

616

Commercial paper

(L)

1,088

578

Total parent debt

(J)+(K)+(L)

3,163

2,794

Parent debt to total debt, excluding securitization debt

[((J)+(K)+(L))/(C)]

21.1%

19.5%

Appendix G-3: Reconciliation of GAAP to Non-GAAP Financial Measures – Debt Ratios excluding Securitization Debt; Gross Liquidity; Debt to Operational Adjusted EBITDA excluding Securitization Debt; Operational FFO to Debt Ratio, excluding Securitization Debt (continued)

($ in millions except where noted)

First Quarter

2017

2016

Total debt

(A)

15,611

15,092

Less securitization debt

(B)

637

752

Total debt, excluding securitization debt

(C)

14,974

14,340

As-reported consolidated net income (loss), rolling 12 months

(714)

(224)

Add back (rolling 12 months):

Interest expense

664

647

Income taxes

(949)

(653)

Depreciation and amortization

1,360

1,340

Regulatory charges (credits)

8

166

Decommissioning expense

373

279

Subtract (rolling 12 months):

Securitization proceeds

143

136

Interest and investment income

169

152

AFUDC-equity funds

68

59

Adjusted EBITDA, rolling 12 months

(D)

362

1,208

Add back special items (rolling 12 months pre-tax):

EWC Nuclear plant impairments and costs associated with decisions to close or sell plants

3,121

2,066

DOE litigation awards for VY and FitzPatrick

(34)

-

Top Deer investment impairment

-

37

Gain on the sale of RISEC

-

(154)

Gain on the sale of FitzPatrick

(16)

-

Operational adjusted EBITDA, rolling 12 months

(E)

3,433

3,157

Debt to operational adjusted EBITDA, excluding securitization debt

(C)/(E)

4.4x

4.6x

Net cash flow provided by operating activities, rolling 12 months

(F)

2,995

3,213

AFUDC-borrowed funds used during construction, rolling 12 months

(G)

(34)

(30)

Working capital items in net cash flow provided by operating activities (rolling 12 months):

Receivables

(17)

92

Fuel inventory

54

1

Accounts payable

194

(49)

Prepaid taxes and taxes accrued

(72)

134

Interest accrued

6

4

Other working capital accounts

119

(118)

Securitization regulatory charges

114

106

Total

(H)

398

170

FFO, rolling 12 months

(F)+(G)-(H)

2,563

3,013

Add back special items (rolling 12 months pre-tax):

EWC Nuclear plant impairments and costs associated with decisions to close or sell plants

24

4

Operational FFO, rolling 12 months

(I)

2,587

3,017

Operational FFO to debt, excluding securitization debt

(I)/(C)

17.3%

21.0%

Totals may not foot due to rounding