Entergy 2004 Annual Report Download - page 23

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CONTENTS
22 Five-Year Summaryof
Selected Financial and
Operating Data
23 Management’sFinancial
Discussion and Analysis
46 Report of Management
46 Report of Independent
Registered Public
Accounting Firm
47 Report of Independent
Registered Public
Accounting Firm
47 Internal Control Over
Financial Reporting
48 Consolidated Statements
of Income
49 Consolidated Statements
of Retained Earnings,
Comprehensive Income,
and Paid-In Capital
52 Consolidated Statements
of Cash Flows
54 Notes to Consolidated
Financial Statements
Financial Review
s
FORWARD-LOOKING INFORMATION
From time to time, Entergy makes statements 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.
Although Entergy believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that
they will prove correct. Except to the extent required by the federal securities laws, Entergy undertakes 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, and there are factors that could cause actual results to differ
materially from those expressed or implied in the statements. Some of those factors (in addition to others described elsewhere in this report
and in subsequent securities filings) include:
Entergy Corporation and Subsidiaries 2004
• resolution of pending and future rate cases and
negotiations, including various performance-based
rate discussions, and other regulatory proceedings,
including those related to Entergy’s System
Agreement and Entergy’s utility supply plan
•Entergy’sabilityto manage its operation and
maintenance costs, particularly at its Non-Utility
Nuclear generating facilities
•the performance of Entergy’s generating plants,
and particularly the capacity factors at its nuclear
generating facilities
•prices for power generated by Entergy’s
unregulated generating facilities, the abilityto
extend or replace the existing purchased power
agreements for those facilities, including the
Non-Utility Nuclear plants, and the prices and
availability of power Entergy must purchase for its
utilitycustomers
• Entergy’s ability to develop and execute on a point
of view regarding prices of electricity, natural gas,
and other energy-related commodities
• changes in the financial markets, particularly those
affecting the availability of capital and Entergy’s
ability to refinance existing debt, execute its share
repurchase program, and fund investments and
acquisitions
• actions of rating agencies, including changes in the
ratings of debt and preferred stock, and changes in
the rating agencies’ ratings criteria
• changes in inflation and interest rates
•Entergy’sabilityto purchase and sell assets at
attractive prices and on other attractive terms
•volatilityand changes in markets for electricity,
natural gas, uranium, and other energy-
related commodities
• changes in utility regulation, including the begin-
ning or end of retail and wholesale competition,
the ability to recover net utility assets and other
potential stranded costs, the establishment of a
regional transmission organization that includes
Entergy’s utility service territory, and the
application of market power criteria by FERC
• changes in regulation of nuclear generating
facilities and nuclear materials and fuel, including
possible shutdown of Indian Point or other
nuclear generating facilities
•uncertainty regarding the establishment of interim
or permanent sites for spent nuclear fuel storage
and disposal
• resolutionof pending or futureapplications for
license extensions or modifications of nuclear
generating facilities
• changes in law resulting from proposed
energylegislation
• changes in environmental, tax, and other laws,
including requirements for reduced emissions
of sulfur, nitrogen, carbon, mercury, and
other substances
•the economic climate, and particularly growth in
Entergy’s service territory
• variations in weather and the occurrence of
hurricanes and other storms and disasters
• advances in technology
• the potential effects of threatened or actual
terrorism and war
• the effects of Entergy’s strategies to reduce current
tax payments
• the effects of litigation and government
investigations
•changes in accounting standards, corporate
governance,and securities law requirements
•Entergy’sability to attract and retain talented
management and directors
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