Entergy 2007 Annual Report Download - page 28

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Entergy Corporation and Subsidiaries 2007
Forward-Looking Information
In this combined report and from time to time, Entergy Corporation and the Registrant Subsidiaries (Entergy Arkansas, Inc., Entergy Gulf States
Louisiana, L.L.C., Entergy Louisiana, LLC, Entergy Mississippi, Inc., Entergy New Orleans, Inc., and System Energy Resources, Inc.) each makes
statements as a reporting company concerning its expectations, beliefs, plans, objectives, goals, strategies, and future events or performance. Such
statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believes,”
“intends,” “plans,” “predicts,” “estimates,” and similar expressions are intended to identify forward-looking statements but are not the only means
to identify these statements. Although each of these reporting companies believes that these forward-looking statements and the underlying
assumptions are reasonable, it cannot provide assurance that they will prove correct. Any forward-looking statement is based on information
current as of the date of this combined report and speaks only as of the date on which such statement is made. Except to the extent required by the
federal securities laws, these reporting companies undertake no obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
Forward-looking statements involve a number of risks and uncertainties. ere are factors that could cause actual results to dier materially
from those expressed or implied in the forward-looking statements, including those factors discussed or incorporated by reference in (a) Item 1A.
Risk Factors, (b) Management’s Financial Discussion and Analysis, and (c) the following factors (in addition to others described elsewhere in this
combined report and in subsequent securities lings):
n resolution of pending and future rate cases and negotiations,
including various performance-based rate discussions and
implementation of Texas restructuring legislation, and other
regulatory proceedings, including those related to Entergy’s System
Agreement, Entergy’s utility supply plan, recovery of storm costs,
and recovery of fuel and purchased power costs
n changes in utility regulation, including the beginning or end of
retail and wholesale competition, the ability to recover net utility
assets and other potential stranded costs, the operations of the
independent coordinator of transmission that includes Entergy’s
utility service territory, and the application of more stringent
transmission reliability requirements or market power criteria by
the FERC (Federal Energy Regulatory Commission)
n changes in regulation of nuclear generating facilities and nuclear
materials and fuel, including possible shutdown of nuclear
generating facilities, particularly those in the Non-Utility
Nuclear business
n resolution of pending or future applications for license extensions
or modications of nuclear generating facilities
n the performance of Entergy’s generating plants, and particularly
the capacity factors at its nuclear generating facilities
n Entergy’s ability to develop and execute on a point of view
regarding future prices of electricity, natural gas, and other energy-
related commodities
n prices for power generated by Entergy’s unregulated generating
facilities, the ability to hedge, sell power forward or otherwise
reduce the market price risk associated with those facilities,
including the Non-Utility Nuclear plants, and the prices and
availability of fuel and power Entergy must purchase for its
utility customers, and Entergy’s ability to meet credit support
requirements for fuel and power supply contracts
n volatility and changes in markets for electricity, natural gas,
uranium, and other energy-related commodities
n changes in law resulting from federal energy legislation
n changes in environmental, tax, and other laws, including
requirements for reduced emissions of sulfur, nitrogen, carbon,
mercury, and other substances
n uncertainty regarding the establishment of interim or permanent
sites for spent nuclear fuel and nuclear waste storage and disposal
n variations in weather and the occurrence of hurricanes and other
storms and disasters, including uncertainties associated with
eorts to remediate the eects of Hurricanes Katrina and Rita and
recovery of costs associated with restoration
n Entergy’s and its subsidiaries’ ability to manage their operation
and maintenance costs
n Entergy’s ability to purchase and sell assets at attractive prices
and on other attractive terms
n the economic climate, and particularly growth in Entergy’s
service territory
n the eects of Entergy’s strategies to reduce tax payments
n changes in the nancial markets, particularly those aecting the
availability of capital and Entergy’s ability to renance existing
debt, execute its share repurchase program, and fund investments
and acquisitions
n actions of rating agencies, including changes in the ratings of debt
and preferred stock, changes in general corporate ratings, and
changes in the rating agencies’ ratings criteria
n changes in ination and interest rates
n the eect of litigation and government investigations
n advances in technology
n the potential eects of threatened or actual terrorism and war
n Entergy’s ability to attract and retain talented management
and directors
n changes in accounting standards and corporate governance
n And the following transactional factors (in addition to others
described elsewhere in this and in subsequent securities lings):
(i) risks inherent in the contemplated Non-Utility Nuclear spin-o,
joint venture and related transactions (including the level of debt
incurred by the spun-o company and the terms and costs related
thereto); (ii) legislative and regulatory actions; and (iii) conditions
of the capital markets during the periods covered by the forward-
looking statements. Entergy Corporation cannot provide any
assurances that the spin-o or any of the proposed transactions
related thereto will be completed, nor can it give assurances as to
the terms on which such transactions will be consummated. e
transaction is subject to certain conditions precedent, including
regulatory approvals and the nal approval by the Board.
GAAP TO NON-GAAP RECONCILIATION
Earnings Per Share 2007 2006
As-Reported $ 5.60 $5.36
Less Special Items $(0.16) $0.64
Operational $ 5.76 $4.72
Financial Review