Entergy reports third quarter earnings

Consolidated earnings (GAAP and non-GAAP measures)

Third quarter and year-to-date 2023 vs. 2022 (See Appendix A for reconciliation of GAAP to non-GAAP measures and description of adjustments)

Third quarter

Year-to-date

2023

2022

Change

2023

2022

Change

(After-tax, $ in millions)

As-reported earnings

667

561

106

1,369

997

372

Less adjustments

(27)

(19)

(8)

42

(216)

258

Adjusted earnings (non-GAAP)

694

580

114

1,327

1,213

114

  Estimated weather impact

135

21

115

103

86

17

(After-tax, per share in $)

As-reported earnings

3.14

2.74

0.40

6.45

4.88

1.57

Less adjustments

(0.13)

(0.10)

(0.03)

0.20

(1.06)

1.26

Adjusted earnings (non-GAAP)

3.27

2.84

0.43

6.25

5.94

0.32

  Estimated weather impact

0.64

0.10

0.54

0.48

0.42

0.06

Calculations may differ due to rounding

Appendix A-1: Consolidated earnings - reconciliation of GAAP to non-GAAP measures

Third quarter and year-to-date 2023 vs. 2022 (See Appendix A-2 and Appendix A-3 for details on adjustments)

Third quarter

Year-to-date

2023

2022

Change

2023

2022

Change

(After-tax, $ in millions)

As-reported earnings (loss)

Utility

752

672

79

1,663

1,166

498

Parent & Other

2022 EWC

-

(19)

19

-

75

(75)

All other

(85)

(92)

8

(294)

(244)

(50)

Total Parent & Other

(85)

(112)

27

(294)

(169)

(125)

Consolidated

667

561

106

1,369

997

372

Less adjustments

Utility

(59)

-

(59)

10

(291)

301

Parent & Other

2022 EWC

-

(19)

19

-

75

(75)

All other

32

-

32

32

-

32

Total Parent & Other

32

(19)

51

32

75

(43)

Consolidated

(27)

(19)

(8)

42

(216)

258

Adjusted earnings (loss) (non-GAAP)

Utility

810

672

138

1,653

1,457

196

Parent & Other

2022 EWC

-

-

-

-

-

-

All other

(117)

(92)

(24)

(326)

(244)

(82)

Total Parent & Other

(117)

(92)

(24)

(326)

(244)

(82)

Consolidated

694

580

114

1,327

1,213

114

Estimated weather impact

135

21

115

103

86

17

Diluted average number of common shares outstanding (in millions)

212

205

8

212

204

8

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

As-reported earnings (loss)

Utility

3.54

3.29

0.25

7.84

5.70

2.13

Parent & Other

2022 EWC

-

(0.10)

0.10

-

0.37

(0.37)

All other

(0.40)

(0.45)

0.05

(1.39)

(1.19)

(0.19)

Total Parent & Other

(0.40)

(0.55)

0.15

(1.39)

(0.83)

(0.56)

Consolidated

3.14

2.74

0.40

6.45

4.88

1.57

Less adjustments

Utility

(0.28)

-

(0.28)

0.05

(1.43)

1.47

Parent & Other

2022 EWC

-

(0.10)

0.10

-

0.37

(0.37)

All other

0.15

-

0.15

0.15

-

0.15

Total Parent & Other

0.15

(0.10)

0.25

0.15

0.37

(0.22)

Consolidated

(0.13)

(0.10)

(0.03)

0.20

(1.06)

1.26

Adjusted earnings (loss) (non-GAAP)

Utility

3.82

3.29

0.53

7.79

7.13

0.66

Parent & Other

2022 EWC

-

-

-

-

-

-

All other

(0.55)

(0.45)

(0.10)

(1.54)

(1.19)

(0.34)

Total Parent & Other

(0.55)

(0.45)

(0.10)

(1.54)

(1.19)

(0.34)

Consolidated

3.27

2.84

0.43

6.25

5.94

0.32

Estimated weather impact

0.64

0.10

0.54

0.48

0.42

0.06

Calculations may differ due to rounding

(a)

Per share amounts are calculated by dividing the corresponding earnings (loss) by the diluted average number of common shares outstanding for the period.

Appendix A-2: Adjustments by driver (shown as positive/(negative) impact on earnings or EPS)

Third quarter and year-to-date 2023 vs. 2022

Third quarter

Year-to-date

2023

2022

Change

2023

2022

Change

(Pre-tax except for income taxes and totals; $ in millions)

Utility

E-AR write-off of assets related to the ANO stator incident

(78)

-

(78)

(78)

-

(78)

E-LA and E-TX true-up for carrying costs on storm expenditures

-

-

-

31

41

(10)

E-LA contribution to the LURC related to securitization

-

-

-

(15)

(32)

17

E-LA customer-sharing of securitization benefit

-

-

-

(103)

(224)

121

SERI regulatory charge resulting from partial settlement and offer of settlement for pending litigation

-

-

-

-

(551)

551

Income tax effect on Utility adjustments above

20

-

20

47

192

(145)

E-LA income tax benefit resulting from securitization

-

-

-

129

283

(154)

Total Utility

(59)

-

(59)

10

(291)

301

Parent & Other

2022 EWC

Income before income taxes

-

-

-

-

123

(123)

Income taxes

-

(18)

18

-

(46)

46

Preferred dividend requirement

-

(1)

1

-

(2)

2

Total 2022 EWC

-

(19)

19

-

75

(75)

All Other

DOE spent nuclear fuel litigation settlement – IPEC

40

-

40

40

-

40

Income tax effect on adjustments above

(9)

-

(9)

(9)

-

(9)

Total Parent & Other

32

(19)

51

32

75

(43)

Total adjustments

(27)

(19)

(8)

42

(216)

258

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

Utility

E-AR write-off of assets related to the ANO stator incident

(0.28)

-

(0.28)

(0.28)

-

(0.28)

E-LA and E-TX true-up for carrying costs on storm expenditures

-

-

-

0.14

0.17

(0.03)

E-LA contribution to the LURC related to securitization

-

-

-

(0.07)

(0.15)

0.09

E-LA customer-sharing of securitization benefit

-

-

-

(0.36)

(0.81)

0.45

SERI regulatory charge resulting from partial settlement and offer of settlement for pending litigation

-

-

-

-

(2.02)

2.02

E-LA income tax benefit resulting from securitization

-

-

-

0.61

1.38

(0.77)

Total Utility

(0.28)

-

(0.28)

0.05

(1.43)

1.48

Parent & Other

Total 2022 EWC

-

(0.10)

0.10

-

0.37

(0.37)

DOE spent nuclear fuel litigation settlement – IPEC

0.15

-

0.15

0.15

-

0.15

Total Parent & Other

0.15

(0.10)

0.25

0.15

0.37

(0.22)

Total adjustments

(0.13)

(0.10)

(0.03)

0.20

(1.06)

1.26

Calculations may differ due to rounding

(b)

Per share amounts are calculated by multiplying the corresponding earnings (loss) by the estimated income tax rate that is expected to apply and dividing by the diluted average number of common shares outstanding for the period.

Appendix A-3: Adjustments by income statement line item (shown as positive/(negative) impact on earnings)

Third quarter and year-to-date 2023 vs. 2022

(Pre-tax except for income taxes, preferred dividend requirements, and totals; $ in millions)

Third quarter

Year-to-date

2023

2022

Change

2023

2022

Change

Utility

Operating revenues

-

-

-

31

46

(16)

Asset write-offs and impairments

(78)

-

(78)

(78)

-

(78)

Other regulatory charges (credits)–net

-

-

-

(103)

(775)

672

Other income (deductions)

-

-

-

(15)

(37)

22

Income taxes

20

-

20

176

474

(299)

Total Utility

(59)

-

(59)

10

(291)

301

Parent & Other

2022 EWC

  Operating revenues

-

62

(62)

-

301

(301)

  Fuel and fuel-related expenses

-

(30)

30

-

(81)

81

  Purchased power

-

(24)

24

-

(64)

64

  Nuclear refueling outage expenses

-

-

-

-

(18)

18

  Other O&M

-

(10)

10

-

(94)

94

  Asset write-offs and impairments

-

-

-

-

163

(163)

  Decommissioning

-

-

-

-

(28)

28

  Taxes other than income taxes

-

(1)

1

-

(13)

13

  Depreciation and amortization

-

(1)

1

-

(13)

13

  Other income (deductions)

-

6

(6)

-

(26)

26

  Interest expense

-

(2)

2

-

(5)

5

  Income taxes

-

(18)

18

-

(46)

46

  Preferred dividend requirements

-

(1)

1

-

(2)

2

Total 2022 EWC

-

(19)

19

-

75

(75)

All Other

  Asset write-offs and impairments

40

-

40

40

-

40

  Income taxes

(9)

-

(9)

(9)

-

(9)

Total Parent & Other

32

(19)

51

32

75

(43)

Total adjustments

(27)

(19)

(8)

42

(216)

258

Calculations may differ due to rounding

Appendix A-4: Consolidated operating cash flow

Third quarter and year-to-date 2023 vs. 2022

($ in millions)

Third quarter

Year-to-date

2023

2022

Change

2023

2022

Change

Utility

1,387

1,086

301

3,301

1,942

1,360

Parent & Other

2022 EWC

-

(56)

56

-

22

(22)

All other

18

(36)

54

(70)

(155)

84

Total Parent & Other

18

(93)

111

(70)

(132)

62

Consolidated

1,405

993

412

3,231

1,809

1,422

Calculations may differ due to rounding

Appendix B-1: As-reported and adjusted earnings per share variance analysis (c), (d), (e)

Third quarter 2023 vs. 2022

(After-tax, per share in $)

Parent & Other

Utility

2022 EWC (f)

All other

Consolidated

As-

reported

Adjusted

As-

reported

As-

reported

Adjusted

As-

reported

Adjusted

2022 earnings (loss)

3.29

3.29

(0.10)

(0.45)

(0.45)

2.74

2.84

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

0.57

0.57

(g)

(0.03)

0.02

0.02

0.56

0.59

Other O&M

0.12

0.12

(h)

0.04

-

-

0.15

0.11

Asset write-offs and impairments

(0.29)

-

(i)

-

0.16

-

(j)

(0.13)

-

Decommissioning expense

(0.01)

(0.01)

-

-

-

(0.01)

(0.01)

Taxes other than income taxes

(0.03)

(0.03)

-

-

-

(0.03)

(0.03)

Depreciation/amortization exp.

0.05

0.05

(k)

0.01

-

-

0.05

0.04

Other income (deductions)

0.08

0.08

(l)

(0.02)

(0.06)

(0.06)

(m)

(0.01)

0.02

Interest expense

(0.07)

(0.07)

(n)

0.01

(0.05)

(0.05)

(o)

(0.10)

(0.11)

Income taxes–other

(0.03)

(0.03)

0.09

(0.02)

(0.02)

0.04

(0.05)

Share effect

(0.13)

(0.14)

(p)

-

0.01

0.02

(0.12)

(0.12)

2023 earnings (loss)

3.54

3.82

-

(0.40)

(0.55)

3.14

3.27

Calculations may differ due to rounding

Appendix B-2: As-reported and adjusted earnings per share variance analysis (c), (d), (e)

Year-to-date 2023 vs. 2022

(After-tax, per share in $)

Parent & Other

Utility

2022 EWC (f)

All other

Consolidated

As-

reported

Adjusted

As-

reported

As-

reported

Adjusted

As-

reported

Adjusted

2022 earnings (loss)

5.70

7.13

0.37

(1.19)

(1.19)

4.88

5.94

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

3.15

0.75

(g)

(0.60)

0.04

0.04

2.59

0.79

Nuclear refueling outage expense

(0.04)

(0.04)

0.07

-

-

0.04

(0.04)

Other O&M

0.45

0.45

(h)

0.36

(0.04)

(0.04)

0.77

0.41

Asset write-offs and impairments

(0.29)

-

(i)

(0.63)

0.16

-

(j)

(0.76)

-

Decommissioning expense

(0.03)

(0.03)

0.11

-

-

0.08

(0.03)

Taxes other than income taxes

(0.13)

(0.13)

(q)

0.05

(0.01)

(0.01)

(0.09)

(0.14)

Depreciation/amortization exp.

(0.13)

(0.13)

(k)

0.05

(0.02)

(0.02)

(0.09)

(0.14)

Other income (deductions)

0.50

0.39

(l)

0.10

(0.25)

(0.25)

(m)

0.35

0.14

Interest expense

(0.20)

(0.20)

(n)

0.02

(0.10)

(0.10)

(o)

(0.28)

(0.30)

Income taxes–other

(0.86)

(0.10)

(r)

0.10

(0.02)

(0.02)

(0.78)

(0.12)

Preferred dividend requirements and noncontrolling interest

-

-

0.01

(0.01)

(0.01)

-

(0.01)

Share effect

(0.30)

(0.30)

(p)

-

0.05

0.06

(p)

(0.25)

(0.24)

2023 earnings (loss)

7.84

7.79

-

(1.39)

(1.54)

6.45

6.25

Calculations may differ due to rounding

(c) Utility operating revenue and Utility income taxes-other exclude the following for the amortization of unprotected excess 
ADIT affecting customers' bills (net effect is neutral to earnings) ($ in millions):

3Q23

3Q22

YTD23

YTD22

Utility operating revenue

5

(16)

8

(50)

Utility income taxes-other

(5)

16

(8)

50

(d) Utility regulatory charges (credits) and Utility preferred dividend requirements and noncontrolling interest exclude the
following for the effects of HLBV accounting and the approved deferral (net effect is neutral to earnings) ($ millions): 

3Q23

3Q22

YTD23

YTD22

Utility regulatory charges (credits)

3

10

10

12

Utility preferred dividend requirements and noncontrolling interest

(3)

(10)

(10)

(12)

(e)

EPS effect is calculated by multiplying the pre-tax amount by the estimated income tax rate that is expected to apply and dividing by diluted average number of common shares outstanding for the prior period. Income taxes–other represents income tax differences other than the tax effect of individual line items. Share effect captures the impact from the change in diluted average number of common shares outstanding.

(f)

In 2022, the wind down of EWC was completed and that business is no longer a reportable segment. Starting in 2023, the remaining activity from EWC is included in Parent & Other "All other." EWC 2022 results were largely attributable to Palisades nuclear plant, which was shut down and sold in second quarter 2022. Financial results in 2022 included revenue and operating expenses from Palisades until the plant was shut down in May 2022, and decommissioning expense and earnings on the decommissioning trust until the plant was sold in June 2022. Second quarter 2022 results also included a gain of $166 million ($130 million after tax) as a result of the sale of Palisades. Third quarter 2022 results included the accrual of an uncertain tax position as a result of a state tax audit.

3Q

YTD

Electric volume / weather

0.52

0.08

Retail electric price

0.28

0.94

3Q23 E-TX adjustments to regulatory provisions

0.11

0.11

3Q23 E-TX base rate case relate-back

(0.03)

(0.03)

3Q23 SERI depreciation rate settlement

(0.15)

(0.15)

3Q22 reg. credit for E-MS 2021 FRP lookback in excess of previous provision

(0.05)

(0.05)

3Q22 reg. credit for E-MS 2022 FRP rate change retroactive to 4/1/2022

(0.03)

(0.03)

2Q22 increase in provision for potential refunds in SERI complaints

-

2.02

2Q22 provision for customer sharing of securitization benefits

-

0.81

2Q22 reg. provisions for true-up of E-LA and
E-TX equity carrying costs on 2020 storms

-

(0.26)

2022 reg. provisions for true-up of E-LA and
E-TX cost of debt from 2020 storms

-

(0.07)

1Q23 provision for customer sharing of securitization benefits

-

(0.37)

1Q23 E-LA true-up of carrying charges on storm costs

-

0.15

Reg. provisions for decommissioning items

0.03

(0.02)

Grand Gulf recovery

(0.08)

(0.07)

Other

(0.03)

0.09

Total

0.57

3.15

(g)

The third quarter and year-to-date increases included the effects of weather on retail volume. Variances also reflect regulatory actions including E-AR's FRP, E-LA's FRP (including riders), E-MS's FRP, E-NO's FRP, and E-TX's base rate increase. In third quarter 2022, E-MS recorded regulatory credits for the true up of the 2021 FRP lookback as well as the retroactive portion of its FRP rate change. In third quarter 2023, E-TX recorded adjustments to existing regulatory provisions and a new regulatory provision for the relate-back portion of its base rate case. In third quarter 2023, SERI recorded a regulatory provision to refund excess depreciation collected from customers as a result of FERC approving lower depreciation rates retroactive to March 2022 (largely offset by a retroactive reduction in depreciation expense). The variances also reflected a change in regulatory provisions for decommissioning items (the difference between expense and trust earnings plus costs collected in revenue, largely earnings neutral). The year-to-date variance included several second quarter 2022 items: SERI recorded a $551 million ($413 million after-tax) regulatory charge to reflect the effects of a partial settlement agreement and offer of settlement related to pending proceedings before the FERC (this item was considered an adjustment and excluded from adjusted earnings); a regulatory provision for the true-up of E-LA and E-TX cost of debt from 2020 storms was recorded, as well as $59 million in revenues ($54 million after-tax) for the equity component of carrying charges on those storm costs ($46 million ($42 million after tax) associated with prior years was considered an adjustment and excluded from adjusted earnings); and E-LA recorded a $224 million ($165 million after-tax) regulatory provision for sharing the benefits of E-LA's securitization with customers (considered an adjustment and excluded from adjusted earnings). The year-to-date variance also reflected items resulting from securitization approvals: in the first quarter 2023, E-LA recorded a regulatory provision for $103 million ($76 million after tax) for sharing the benefits of E-LA's securitization with customers and $31 million for the true-up of carrying charges on storm costs (both were considered adjustments and excluded from adjusted earnings).

(h)

The third quarter and year-to-date earnings increases from lower Utility other O&M included lower nuclear generation expenses primarily due to a lower scope of work, and lower MISO costs as a result of MISO changing its ancillary generator services market structure (largely offset by lower ancillary generator revenues). The increases also reflected lower compensation and benefits costs including lower pension and other postretirement benefits service costs and healthcare claims. The year-to-date increase also reflected higher prescription drug rebates in 2023, lower non-nuclear generation expenses primarily due to a lower scope of work, the recognition of a DOE award for spent fuel litigation, and a gain on sale of an asset, partially offset by lower nuclear insurance refunds. 

(i)

The third quarter and year-to-date as-reported earnings decreases from higher asset write-offs and impairments were due to a third quarter 2023 E-AR write-off totaling $78 million ($59 million after tax) for a $69 million regulatory asset for deferred fuel and a $10 million undepreciated balance in capital costs, which resulted from the ANO stator incident in 2013 (considered an adjustment and excluded from adjusted earnings). 

(j)

The third quarter and year-to-date as-reported earnings increases from Parent & Other asset write-offs and impairments were due to recording a spent fuel litigation settlement related to IPEC in third quarter 2023 (considered an adjustment and excluded from adjusted earnings). 

(k)

The third quarter earnings increase from lower Utility depreciation/amortization expense was due to a reduction in depreciation expense resulting from FERC approval of lower depreciation rates at SERI retroactive to March 2022 (largely offset by a regulatory provision to refund the excess depreciation collected from customers). The increase was partially offset by higher plant in service and updated depreciation rates for E-TX. The year-to-date earnings decrease reflected the same drivers. 

(l)

The third quarter and year-to-date earnings increases from higher Utility other income (deductions) were due to higher intercompany dividend income from affiliated preferred membership interests related to storm cost securitizations (largely offset in P&O). The increases were partially offset by lower carrying costs on deferred fuel balances, an increase in non-service pension settlement costs, and lower donations. The third quarter increase was partially offset by changes in nuclear decommissioning trust returns (based on regulatory treatment, decommissioning-related variances are largely earnings neutral). The year-to-date earnings increase also reflected an increase in allowance for equity funds used during construction due to higher construction work in progress in 2023, partially offset by lower storm restoration carrying costs. Additionally, a $32 million charge recorded in second quarter 2022 to account for LURC's 1% beneficial interest in the trust established as part of E-LA's 2022 securitization as compared to a $15 million dollar charge recorded in first quarter 2023 to account for LURC's 1% beneficial interest in the trust established as part of E-LA's 2023 securitization (both items were considered an adjustment and excluded from adjusted earnings) contributed to the increase.

(m)

The third quarter and year-to-date earnings decreases from lower Parent & Other other income (deductions) were due to changes in the new intercompany investment in preferred stock resulting from E-LA's securitizations (largely offset in Utility), partially offset by higher non-service pension income.

(n)

The third quarter and year-to-date earnings decreases from higher Utility interest expense were due primarily to higher debt balances as well as a higher weighted-average interest rate.

(o)

The third quarter and year-to-date earnings decreases from higher Parent & Other interest expense were due primarily to higher interest rates on commercial paper. The year-to-date decrease was partially offset by lower long-term debt balances.

(p)

The third quarter and year-to-date earnings per share impacts from share effect were due to settlement of equity forward sales in November 2022 under the company's ATM program.

(q)

The year-to-date earnings decrease from higher Utility taxes other than income taxes was due to higher ad valorem and franchise taxes. 

(r)

The year-to-date earnings decrease from Utility income taxes-other was due largely to a second quarter 2022 $283 million income tax benefit related to securitization financing (this item was considered an adjustment and excluded from adjusted earnings). Other miscellaneous income tax items also contributed to the year-to-date decrease, partially offset by a $129 million income tax benefit recorded in first quarter 2023 related to storm cost securitization financing (this item was considered an adjustment and excluded from adjusted earnings). 

Appendix C: Utility operating and financial measures

Third quarter and year-to-date 2023 vs. 2022

Third quarter

Year-to-date

2023

2022

% Change

% Weather
adjusted (s)

2023

2022

% Change

% Weather
adjusted (s)

GWh sold

Residential

12,661

11,272

12.3

(1.1)

28,963

29,218

(0.9)

(0.1)

Commercial

8,648

8,223

5.2

(1.1)

21,865

21,697

0.8

(1.0)

Governmental

700

702

(0.3)

(3.2)

1,887

1,928

(2.1)

(3.2)

Industrial

13,781

13,926

(1.0)

(1.0)

39,823

39,903

(0.2)

(0.2)

Total retail sales

35,790

34,123

4.9

(1.1)

92,538

92,746

(0.2)

(0.4)

Wholesale

3,916

4,809

(18.6)

11,589

12,371

(6.3)

Total sales

39,706

38,932

2.0

104,127

105,117

(0.9)

Number of electric retail customers

Residential

2,581,652

2,561,441

0.8

Commercial

370,966

366,351

1.3

Governmental

18,008

18,055

(0.3)

Industrial

50,380

50,721

(0.7)

Total retail customers

3,021,006

2,996,568

0.8

Other O&M and nuclear refueling outage exp. per MWh

$19.70

$20.95

(6.0)

$20.34

$21.23

(4.2)

Calculations may differ due to rounding

(s)

The effects of weather were estimated using heating degree days and cooling degree days for the period 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 are subject to change.

Appendix D: GAAP and non-GAAP financial measures

Third quarter 2023 vs. 2022 (See Appendix F for reconciliation of GAAP to non-GAAP financial measures)

For 12 months ending September 30

2023

2022

Change

GAAP measure

As-reported ROE

11.4 %

10.8 %

0.6 %

Non-GAAP financial measure

Adjusted ROE

11.1 %

11.7 %

(0.6) %

As of September 30 ($ in millions, except where noted)

2023

2022

Change

GAAP measures

Cash and cash equivalents

1,520

1,003

517

Available revolver capacity 

4,346

4,191

154

Commercial paper

1,351

1,386

(35)

Total debt

27,619

27,677

(58)

Securitization debt

278

311

(33)

Debt to capital

66.3 %

69.0 %

(2.7) %

Storm escrows

416

325

91

Non-GAAP financial measures ($ in millions, except where noted)

Debt to capital, excluding securitization debt

66.1 %

68.8 %

(2.7) %

Net debt to net capital, excluding securitization debt

64.8 %

68.0 %

(3.2) %

Gross liquidity

5,865

5,195

670

Net liquidity

4,514

3,809

705

Net liquidity, including storm escrows

4,930

4,133

797

Parent debt to total debt, excluding securitization debt

19.6 %

20.3 %

(0.7) %

FFO to debt, excluding securitization debt

12.4 %

12.2 %

0.2 %

Calculations may differ due to rounding

Utility operating and financial measures

GWh sold

Total number of GWh sold to retail and wholesale customers

Number of electric retail customers

Average number of electric customers over the period

Other O&M and refueling outage expense per MWh

Other operation and maintenance expense plus nuclear refueling outage expense per MWh of total sales

Financial measures – GAAP

As-reported ROE

12-months rolling net income attributable to Entergy Corp. divided by avg. common equity

Debt to capital

Total debt divided by total capitalization

Available revolver capacity

Amount of undrawn capacity remaining on corporate and subsidiary revolvers

Securitization debt

Debt on the balance sheet associated with securitization bonds that is secured by certain future customer collections

Total debt

Sum of short-term and long-term debt, notes payable, and commercial paper

Financial measures – non-GAAP

Adjusted EPS

As-reported EPS excluding adjustments

Adjusted ROE

12-months rolling adjusted net income attributable to Entergy Corp. divided by avg. common equity

Adjustments

Unusual or non-recurring items or events or other items or events that management believes do not reflect the ongoing business of Entergy, such as significant tax items, and other items such as certain costs, expenses, or other specified items. In 2022, the results of the EWC segment were considered an adjustment in light of the company's exit from the merchant nuclear power business.

Debt to capital, excluding securitization debt

Total debt divided by total capitalization, excluding securitization debt

FFO

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

FFO to debt, excluding securitization debt

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

Gross liquidity

Sum of cash and available revolver capacity

Net debt to net capital, excl. securitization debt

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

Net liquidity

Sum of cash and available revolver capacity less commercial paper borrowing

Net liquidity, including storm escrows

Sum of cash, available revolver capacity, and escrow accounts available for certain storm expenses, less commercial paper borrowing

Parent debt to total debt, excl. securitization debt

Entergy Corp. debt, including amounts drawn on credit revolver and commercial paper facilities, as a percent of consolidated total debt, excluding securitization debt

ADIT

AFUDC

AFUDC –
 borrowed funds

ALJ

AMI

ANO

APSC

ATM

bbl

Bcf/D

bps

CAGR

CCGT

CCN

CCNO

CFO

COD

DCRF

DOE

DTA

E-AR

E-LA

E-MS

E-NO

E-TX

EEI

EPS

ESG

ETR

EWC

FERC

FFO

FIN 48

FRP

GAAP

GCRR

Grand Gulf or GGNS

Accumulated deferred income taxes

Allowance for funds used during construction

Allowance for borrowed funds used during
 construction

Administrative law judge

Advanced metering infrastructure

Arkansas Nuclear One (nuclear)

Arkansas Public Service Commission

At the market equity issuance program

Barrels

Billion cubic feet per day

Basis points

Compound annual growth rate

Combined cycle gas turbine

Certificate for convenience and necessity

Council of the City of New Orleans

Cash from operations

Commercial operation date

Distribution cost recovery factor

U.S. Department of Energy

Deferred tax asset

Entergy Arkansas, LLC

Entergy Louisiana, LLC

Entergy Mississippi, LLC

Entergy New Orleans, LLC

Entergy Texas, Inc.

Edison Electric Institute

Earnings per share

Environmental, social, and governance

Entergy Corporation

Entergy Wholesale Commodities

Federal Energy Regulatory Commission

Funds from operations

FASB Interpretation No.48, "Accounting for
 Uncertainty in Income Taxes"

Formula rate plan

U.S. generally accepted accounting principles

Generation Cost Recovery Rider

Unit 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by SERI

HLBV

IPEC

LNG

LPSC

LTM

LURC

MISO

MMBtu

Moody's

MOU

MPSC

MTEP

NBP

NDT

NYSE

O&M

OCAPS

OCF

OpCo

OPEB

Other  O&M

P&O

Palisades

PMR

PPA

PUCT

RFP

ROE

RSP

S&P

SEC

SERI

TCRF

TRAM

UPSA

WACC

Hypothetical liquidation at book value

Indian Point Energy Center (nuclear)
(sold 5/28/21)

Liquified natural gas

Louisiana Public Service Commission

Last twelve months

Louisiana Utility Restoration Corporation

Midcontinent Independent System Operator, Inc.

Million British thermal units

Moody's Investor Service

Memorandum of understanding

Mississippi Public Service Commission

MISO Transmission Expansion Plan

National Balancing Point

Nuclear decommissioning trust

New York Stock Exchange

Operations and maintenance

Orange County Advanced Power Station

Net cash flow provided by operating activities

Utility operating company

Other post-employment benefits

Other non-fuel operation and maintenance expense

Parent & Other

Palisades Power Plant (nuclear) (shut down May 2022, sold June 2022)

Performance Management Rider

Power purchase agreement or purchased power agreement

Public Utility Commission of Texas

Request for proposals

Return on equity

Rate Stabilization Plan (E-LA Gas)

Standard & Poor's

U.S. Securities and Exchange Commission

System Energy Resources, Inc.

Transmission cost recovery factor

Tax reform adjustment mechanism

Unit Power Sales Agreement

Weighted-average cost of capital

Appendix F-1: Reconciliation of GAAP to non-GAAP financial measures – ROE

Third quarter

2023

2022

As-reported net income (loss) attributable to Entergy Corporation

(A)

1,475

1,256

Adjustments

(B)

41

(112)

Adjusted earnings (non-GAAP)

(A-B)

1,434

1,368

Average common equity (average of beginning and ending balances)

(C)

12,894

11,674

As-reported ROE

(A/C)

11.4 %

10.8 %

Adjusted ROE (non-GAAP)

[(A-B)/C]

11.1 %

11.7 %

Calculations may differ due to rounding

Appendix F-2: Reconciliation of GAAP to non-GAAP financial measures – debt ratios excluding securitization debt; gross
liquidity; net liquidity; net liquidity, including storm escrows

($ in millions except where noted)

Third quarter

2023

2022

Total debt

(A)

27,619

27,677

Less securitization debt

(B)

278

311

Total debt, excluding securitization debt

(C)

27,341

27,366

Less cash and cash equivalents

(D)

1,520

1,003

Net debt, excluding securitization debt

(E)

25,821

26,362

Commercial paper

(F)

1,351

1,386

Total capitalization

(G)

41,657

40,091

Less securitization debt

(B)

278

311

Total capitalization, excluding securitization debt

(H)

41,379

39,780

Less cash and cash equivalents

(D)

1,520

1,003

Net capital, excluding securitization debt

(I)

39,859

38,776

Debt to capital

(A/G)

66.3 %

69.0 %

Debt to capital, excluding securitization debt (non-GAAP)

(C/H)

66.1 %

68.8 %

Net debt to net capital, excluding securitization debt (non-GAAP)

(E/I)

64.8 %

68.0 %

Available revolver capacity

(J)

4,346

4,191

Storm escrows

(K)

416

325

Gross liquidity (non-GAAP)

(D+J)

5,865

5,195

Net liquidity (non-GAAP)

(D+J-F)

4,514

3,809

Net liquidity, including storm escrows (non-GAAP)

(D+J-F+K)

4,930

4,133

Entergy Corporation notes:

Due September 2025

800

800

Due September 2026

750

750

Due June 2028

650

650

Due June 2030

600

600

Due June 2031

650

650

Due June 2050

600

600

Total Entergy Corporation notes

(L)

4,050

4,050

Revolver draw

(M)

-

150

Unamortized debt issuance costs and discounts

(N)

(39)

(44)

Total parent debt

(F+L+M+N)

5,363

5,542

Parent debt to total debt, excluding securitization debt (non-GAAP)

[(F+L+M+N)/C]

19.6 %

20.3 %

Calculations may differ due to rounding

Appendix F-3: Reconciliation of GAAP to non-GAAP financial measures – FFO to debt, excluding securitization debt

($ in millions except where noted)

Third quarter

2023

2022

Total debt

(A)

27,619

27,677

Less securitization debt

(B)

278

311

Total debt, excluding securitization debt

(C)

27,341

27,366

Net cash flow provided by operating activities, LTM

(D)

4,007

2,099

AFUDC – borrowed funds, LTM

(E)

(39)

(28)

Working capital items in net cash flow provided by operating activities, LTM:

Receivables

(6)

(208)

Fuel inventory

(47)

(9)

Accounts payable

(346)

(153)

Taxes accrued

23

49

Interest accrued

32

(2)

Deferred fuel costs

1,048

(931)

Other working capital accounts

(170)

(84)

Securitization regulatory charges, LTM

32

67

Total

(F)

566

(1,271)

FFO, LTM (non-GAAP)

(G)=(D+E-F)

3,402

3,342

FFO to debt, excluding securitization debt (non-GAAP)

(G/C)

12.4 %

12.2 %

Calculations may differ due to rounding