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Entergy 2005 Annual Report
Tested
DEDICATED TO THE EMPLOYEES OF ENTERGY CORPORATION

Table of contents

  • Page 1
    E n t e r g y 2 0 0 5 A n n u a l R e p o r t Tested D EDICATED TO THE E MPLOYEES OF E NTERGY C ORPORATION

  • Page 2
    ... Chalmette, Louisiana - one of the hardest-hit communities on the Gulf Coast. Like most of our employees, customers, and neighbors, the flag was beaten and battered by the storm, but it survived. We celebrate the spirit of all those who were tested to their limits by Hurricanes Katrina and Rita, yet...

  • Page 3
    ... ever to hit the United States. We faced the highest number of customer outages ever in our company's history - twice. Our heroic employees overcame personal loss and widespread devastation in the coastal areas of Louisiana, Mississippi, and Texas to restore power to all customers who could...

  • Page 4
    ... operates power plants with approximately 30,000 megawatts of electric generating capacity, and it is the second-largest nuclear generator in the United States. Entergy delivers electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. Entergy has annual revenues...

  • Page 5
    On August 29, Hurricane Katrina literally blew apart thousands of lives and much of our infrastructure in Louisiana and Mississippi with strong winds and severe flooding. Twenty-six days later, Hurricane Rita stormed ashore at the Texas-Louisiana border, inflicting massive property damage to the ...

  • Page 6
    becoming more > L E T T E R T O S T A K E H O L D E R S

  • Page 7
    ... size, Katrina leveled much of a 400-mile section of coastline stretching from central Louisiana, across Mississippi, into Alabama and western Florida; and devastated the city of New Orleans. With damage estimates topping $75 billion, Katrina ranks as the costliest natural disaster in U.S. history...

  • Page 8
    ... and signed into law. The GO Zone legislation permits public utilities to accelerate the realization of tax benefits for Hurricane Katrina casualty losses and repair costs. The Katrina Relief Bill provides $11.5 billion of Community Development Block Grants and includes language that permits funding...

  • Page 9
    ... costs in Louisiana and Mississippi. And in Texas, the public utility commission has initiated a project to review exceptional storm damage costs caused by Hurricane Rita. We are also working with state regulators to possibly securitize our restoration costs - essentially spread the impact on rates...

  • Page 10
    ...Northeast fleet and see opportunities to improve productivity further. We always put safety first and seven of our nuclear sites have achieved OSHA VPP Star status - the highest industrial safety rating for a work site. Our employees delivered a heroic storm recovery effort in 2005 - restoring power...

  • Page 11
    ... a financially viable entity as required by the law. We are also redefining our corporate headquarters. Previously we had 1,500 employees and multiple functions operating out of the city of New Orleans. Given the failure of the levees to withstand Category 3 hurricane strengths and the time required...

  • Page 12
    ... Entergy New Orleans. By 2007, we expect our utility business to be back on track. â- In our nuclear business, we continue to see strong upside potential for efficient nuclear generators which can deliver reliable power. Faced with the alternative supplies from expensive natural gas-fueled plants...

  • Page 13
    ...- one Entergy employee and five fellow industry employees - in the service of our customers. Three of these fatalities occurred during storm restoration efforts. Nineteen of our employees and 35 contractors experienced a lost-time accident in 2005 - far too many. Again, a substantial number occurred...

  • Page 14
    expecting the unexpected solving for

  • Page 15
    x

  • Page 16
    ... from central Louisiana, across Mississippi and Alabama to western Florida. Roughly 90,000 square miles were affected by Katrina - an area approximately the size of Great Britain. Winds caused extensive damage to southeastern Louisiana and the Mississippi Gulf Coast. The city of New Orleans survived...

  • Page 17
    ...-tested plan, crews began restoring power to essential customers first, like hospitals, police, fire, communications, water, sanitary services, and transportation providers. Employees from all parts of our company staffed the phones to answer calls and we maintained frequent contact with the news...

  • Page 18
    ... care options for employees and their families from the Greater New Orleans area. Within days, the team had secured temporary headquarters facilities in Clinton, Mississippi. The decision was made to suspend all disconnect procedures and notices and work out payment plans with individuals with high...

  • Page 19
    ... preparations for Rita. Eventually, more than 4,000 people were recruited and committed for response and plans made for locating command centers and staging sites. SEPTEMBER 23 Entergy New Orleans, Inc. filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. To...

  • Page 20
    30,000 When do

  • Page 21
    function as 1

  • Page 22
    ... circuits were out and nearly 11,500 distribution poles were down. All transmission connections from Lafayette, Louisiana west to Conroe, Texas were severed. At peak outages, more than 800,000 customers were without power due to Rita. Three days of rolling blackouts began for 142,000 customers in...

  • Page 23
    ... suffered losses in Katrina and Rita. Among the recipients were 293 Entergy employees. We also launched Operation ReStore Hope in the midst of the restoration effort. At centers in Jackson, Little Rock, Beaumont, and Baton Rouge, and through an online store, employees received donated goods ranging...

  • Page 24
    ...for Hurricane Katrina casualty losses and repair costs. Congress also passed and the President signed into law the Katrina Relief Bill - providing $11.5 billion of Community Development Block Grants for states affected by Hurricanes Katrina, Rita, and Wilma. Language in the bill permits funding for...

  • Page 25
    ...million of operating company debt, and marketed $500 million of equity units. In addition, we infused $300 million of equity into Entergy Gulf States - our subsidiary with the highest overall restoration costs - enabling it to maintain its liquidity and investment grade credit rating in anticipation...

  • Page 26
    25 When are there

  • Page 27
    hours in a day

  • Page 28
    ... was rolled into Entergy Louisiana and Entergy Gulf States rates following the transaction close on June 30. â- Entergy Mississippi filed for rate recovery of the Attala Plant acquisition that we announced pursuant to our Generation Supply Plan. Like Perryville, the Attala Plant is a highly...

  • Page 29
    ... of our nuclear team, and new federal policies all combined to produce a year of significant milestones and excellent performance. Rising market prices for natural gas created opportunity for our Northeast fleet. As the fundamentals driving gas pricing became clear, we adjusted our hedging strategy...

  • Page 30
    ... were open and emergency sirens operational. Following regulatory approval, Waterford 3 would be ready to generate power. Two nearby Entergy nuclear units - Grand Gulf near Vicksburg, Mississippi, and River Bend near Baton Rouge, Louisiana - were unaffected by Katrina. They subsequently operated at...

  • Page 31
    ... Katrina, Entergy retirees began reporting to work again. Across Louisiana and Mississippi, retirees worked long hours and filled critical positions in customer service and outage response. Some acted as scouts - covering hundreds of miles to assess damage and identify repair locations. Others...

  • Page 32
    ... in New Orleans. >2,200 The number of individuals and families who received grants from The Power of Hope Fund to assist them in rebuilding their lives. 1.1 million The peak number of customers without power following Hurricane Katrina. Another 800,000 customers would lose power four weeks later...

  • Page 33
    ...E W Five-Year Summary of Selected Financial and Operating Data Management's Financial Discussion and Analysis Report of Management Reports of Independent Registered Public Accounting Firm Internal Control Over Financial Reporting Consolidated Statements of Income Consolidated Statements of Retained...

  • Page 34
    ... to meet credit support requirements for fuel and power supply contracts 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...

  • Page 35
    ... debt), preferred stock with sinking fund, and non-current capital lease obligations. (b) Includes sales to Entergy New Orleans, which was deconsolidated in 2005. See Note 16 to the consolidated financial statements. (c) 2001 includes the effect of a reserve for rate refund at System Energy. 31...

  • Page 36
    ...sells electric power in a four-state service territory that includes portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operates a small natural gas distribution business. â- N O N - U T I L I T Y N U C L E A R owns and operates five nuclear power plants...

  • Page 37
    ... Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. There is an aggregation limit of $1 billion for all parties insured by OIL for any one occurrence, and Entergy has been notified by OIL that it expects claims for Hurricane...

  • Page 38
    ... Accounting Estimates - Nuclear Decommissioning Costs" below for discussion of the implementation of SFAS 143; 34 Net revenue, which is Entergy's measure of gross margin, consists of operating revenues net of: 1) fuel, fuel-related expenses and gas purchased for resale, 2) purchased power expenses...

  • Page 39
    ...the formula rate plan filings that will be effective in 2006 for the 2005 test year for Entergy Louisiana and the Louisiana jurisdiction of Entergy Gulf States. 2004 Compared to 2003 Gross operating revenues, fuel and purchased power expenses, and other regulatory credits - Gross operating revenues...

  • Page 40
    ... for River Bend in accordance with a new decommissioning cost study that reflected a life extension for the plant. For the portion of River Bend not subject to cost-based ratemaking, the revised estimate resulted in the elimination of the asset retirement cost that had been recorded at the time of...

  • Page 41
    ... Rita. As a result, some suppliers began requiring accelerated payments and decreased credit lines. In addition, the hurricanes damaged certain gas supply lines, thereby decreasing the number of potential suppliers. The hurricanes also exacerbated a market run-up in natural gas and power prices...

  • Page 42
    ..., including employee wages and benefits and payments under power purchase and gas supply agreements, and to continue its efforts to repair and restore the facilities needed to serve its electric and gas customers. The facility enables Entergy New Orleans to request funding from Entergy Corporation...

  • Page 43
    ... of business through various fuel cost recovery mechanisms in the U.S. Utility business. In addition to the planned spending in the table above, the U.S. Utility, excluding Entergy New Orleans, also expects to pay for $310 million of capital investments in 2006 related to Hurricane Katrina and Rita...

  • Page 44
    ... supply sources within the U.S. Utility's service territory, including Entergy Mississippi's January 2006 purchase of the 480 MW, natural gas-fired Attala power plant. Nuclear site dry cask spent fuel storage and license renewals. From time to time, Entergy considers other capital investments as...

  • Page 45
    ...the full accumulation of nuclear decommissioning funds on a tax deductible basis, shortens the depreciation recovery period for certain transmission capital expenditures, provides a production credit for electricity generated by new nuclear plants, and expands the net operating loss carryback period...

  • Page 46
    ... by Hurricanes Katrina and Rita. â- The non-nuclear wholesale assets business realized $75 million in net proceeds from sales of portions of three of its power plants in 2004. â- Entergy Louisiana purchased the 718 MW Perryville power plant in June 2005 for $162 million. â- Entergy received net...

  • Page 47
    ... place. Entergy Mississippi made its annual formula rate plan filing in March 2005 based on a 2004 test year. There was no change in rates based on an adjusted ROE midpoint of 10.50%. Entergy New Orleans made a formula rate plan filing in April 2005. The midpoint ROE of the electric and gas plans is...

  • Page 48
    ... fuel and gas-fired generation available to each company and the costs of natural gas and purchased power. Entergy Louisiana, Entergy Gulf States, and Entergy Mississippi are more dependent upon gas-fired generation sources than Entergy Arkansas or Entergy New Orleans. Of these, Entergy Arkansas...

  • Page 49
    ... 2005, and Entergy Louisiana and Entergy Gulf States await the ALJ's initial decision. Market-based Rate Authority On May 5, 2005, the FERC instituted a proceeding under Section 206 of the Federal Power Act to investigate whether Entergy satisfies the FERC's transmission market power and affiliate...

  • Page 50
    ... Entergy Arkansas, $28 million for Entergy Gulf States, $24 million for Entergy Louisiana, and $29 million for Entergy Mississippi. The refunds will be in the form of transmission credits that will be utilized over time as the GenCos take transmission service from Entergy. There are other complaints...

  • Page 51
    ...required by generators who seek to deliver power to other regions. Provides financing benefits, including loan guarantees and production tax credits, for new nuclear plant construction, and reauthorizes the Price-Anderson Act, the law that provides an umbrella of insurance protection for the payment...

  • Page 52
    ... exceeds specified strike prices, the Non-Utility Nuclear business will pay 50% of the amount exceeding the strike prices to NYPA. These payments, if required, will be recorded as adjustments to the purchase price of the plants. The annual energy sales subject to the value sharing agreements are...

  • Page 53
    ... in equity prices and interest rates. The Nuclear Regulatory Commission (NRC) requires Entergy to maintain trusts to fund the costs of decommissioning Arkansas Nuclear One Unit 1 (ANO 1), Arkansas Nuclear One Unit 2 (ANO 2), River Bend, Waterford 3, Grand Gulf, Pilgrim, Indian Point 1 and 2, and...

  • Page 54
    ... reduction in the related regulatory asset. In the third quarter of 2004, Entergy Gulf States recorded a revision to its estimated decommissioning cost liability in accordance with a new decommissioning cost study for River Bend that reflected an expected life extension for the plant. The revised...

  • Page 55
    ...: â- Discount rates used in determining the future benefit obligations; â- Projected health care cost trend rates; â- Expected long-term rate of return on plan assets; and â- Rate of increase in future compensation levels. Entergy reviews these assumptions on an annual basis and adjusts them as...

  • Page 56
    ... unrecognized prior service cost, amounts recoverable in rates, and taxes. Net income for 2005, 2004, and 2003 was not affected. Total postretirement health care and life insurance benefit costs for Entergy in 2005 were $83.7 million, including $24.3 million in savings due to the estimated effect of...

  • Page 57
    ... N AND SUBSIDIARIES 2005 MANAGEMENT'S FINANCIAL DISCUSSION and ANALYSIS concluded OTHER CONTINGENCIES As a company with multi-state domestic utility operations and a history of international investments, Entergy is subject to a number of federal, state, and international laws and regulations and...

  • Page 58
    ...(SFAS) No. 143, Accounting for Asset Retirement Obligations. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of the Corporation's internal control over financial reporting as of December 31, 2005, based on the...

  • Page 59
    ... effectiveness of the Corporation's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable...

  • Page 60
    ...: Fuel, fuel-related expenses, and gas purchased for resale Purchased power Nuclear refueling outage expenses Provision for asset impairments and restructuring charges Other operation and maintenance Decommissioning Taxes other than income taxes Depreciation and amortization Other regulatory credits...

  • Page 61
    ... 2005 2004 2003 Retained Earnings - Beginning of period Add: Earnings applicable to common stock Deduct: Dividends declared on common stock Capital stock...equity units Common stock issuances related to stock plans Paid-in Capital - End of period See Notes to Consolidated Financial Statements. $4,835...

  • Page 62
    ... trust funds Non-utility property - at cost (less accumulated depreciation) Other Total P R O P E RT Y , P L A N T A N D E Q U I P M E N T : Electric Property under capital lease Natural gas Construction work in progress Nuclear fuel under capital lease Nuclear fuel Total property, plant and...

  • Page 63
    ... provisions Long-term debt Preferred stock with sinking fund Other Total Commitments and Contingencies Preferred stock without sinking fund S H A R E H O L D E R S ' E Q U I T Y: Common stock, $.01 par value, authorized 500,000,000 shares; issued 248,174,087 shares in 2005 and in 2004 Paid...

  • Page 64
    ... taxes and investment tax credits Cumulative effect of accounting changes Equity in earnings (loss) of unconsolidated equity affiliates - net of dividends Provision for asset impairments and restructuring charges Changes in working capital: Receivables Fuel inventory Accounts payable Taxes accrued...

  • Page 65
    ... 2005 2005 2004 2003 Proceeds from the issuance of: Long-term debt Preferred stock Common stock and treasury stock Retirement of long-term debt Repurchase of common stock Redemption of preferred stock Changes in credit line borrowings - net Dividends paid: Common stock Preferred stock...

  • Page 66
    ... FUEL COSTS The domestic utility companies generate, transmit, and distribute electric power primarily to retail customers in Arkansas, Louisiana, including the City of New Orleans, Mississippi, and Texas. Entergy Gulf States distributes gas to retail customers in and around Baton Rouge, Louisiana...

  • Page 67
    ... Generating Stations Fuel-Type Ownership Investment U.S. Utility: Grand Gulf Independence White Bluff Roy S. Nelson Big Cajun 2 Energy Commodity Services: Harrison County Warren Gas Gas 550 300 60.90% 75.00% $ 179 $ 24 $ $ 10 9 Unit 1 Units 1 and 2 Units 1 and 2 Unit 6 Unit 3 Nuclear...

  • Page 68
    ... next outage. In accordance with the regulatory treatment of the River Bend plant, River Bend's costs are accrued in advance and included in the cost of service used to establish retail rates. Entergy Gulf States relieves the accrued liability when it incurs costs during the next River Bend outage...

  • Page 69
    ... empowered to set rates that bind customers (its regulator); (ii) are cost-based; and (iii) can be charged to and collected from customers. These criteria may also be applied to separable portions of a utility's business, such as the generation or transmission functions, or to specific classes of...

  • Page 70
    ... asset impairments recognized by Entergy in 2005 and 2004. RIVER BEND AFUDC The River Bend AFUDC gross-up is a regulatory asset that represents the incremental difference imputed by the Louisiana Public Service Commission (LPSC) between the AFUDC actually recorded by Entergy Gulf States on a net-of...

  • Page 71
    ...is expected in April 2006. Entergy Mississippi plans to make a second filing in late spring of 2006 to recover additional restoration costs associated with the hurricanes incurred after November 30, 2005 and to reflect receipt of insurance and federal aid. In December 2005, Entergy Gulf States filed...

  • Page 72
    ... a fixed fuel factor to recover fuel and purchased power costs, including carrying charges, not recovered in base rates. Under the current methodology, semi-annual revisions of the fixed fuel factor may be made in March and September based on the market price of natural gas. Entergy Gulf States will...

  • Page 73
    ... 31, 2005. Entergy Mississippi In Louisiana, Entergy Gulf States and Entergy Louisiana recover electric fuel and purchased power costs for the upcoming month based upon the level of such costs from the prior month. In Louisiana, Entergy Gulf States' purchased gas adjustments include estimates for...

  • Page 74
    ...annual earnings reviews, Entergy Gulf States' ninth post-merger earnings review and revenue requirement analysis, the continuation of a fuel review for Entergy Gulf States, dockets established to consider issues concerning power purchases for Entergy Gulf States and Entergy Louisiana for the summers...

  • Page 75
    ...recovery of the Hurricane Katrina restoration costs or July 1, 2006, whichever is earlier. On December 9, 2005, Entergy Mississippi filed a compliance rider. Filings with the City Council Formula Rate Plans In April 2005, Entergy New Orleans made its annual scheduled formula rate plan filings with...

  • Page 76
    ...denied Entergy's application to certify Entergy's transmission organization as an independent organization under Texas law. In its order, the PUCT also ordered: the cessation of efforts to develop an interim solution for retail open access in Entergy Gulf States' Texas service territory, termination...

  • Page 77
    ... the cost and time related to the construction of facilities to interconnect Entergy Gulf States' Texas operations with ERCOT, while addressing the interest of Entergy Gulf States' retail customers and certain wholesale customers in access to generation outside of Texas. With respect to the SPP, the...

  • Page 78
    ...street lighting depreciation in litigation. Entergy Gulf States was not part of the settlement and did not change its accounting method for these certain assets until 1999. The total cash concession related to these deductions for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New...

  • Page 79
    ... $25 million - $40 million - - The 364-day credit facilities have variable interest rates and the average commitment fee is 0.13%. The $85 million Entergy Arkansas and Entergy Louisiana credit facilities each require the respective company to maintain total shareholders' equity of at least 25% of...

  • Page 80
    ...Entergy New Orleans(g) Entergy Gulf States System Energy Entergy Mississippi Entergy Gulf States Entergy New Orleans(g) Entergy Gulf States Entergy Gulf States Entergy Arkansas Entergy Louisiana Entergy Gulf States Entergy Louisiana Entergy Mississippi Entergy Gulf States Entergy Gulf States Entergy...

  • Page 81
    ... Louisiana West Feliciana Parish - Louisiana West Feliciana Parish - Louisiana Pope County - Arkansas(f) Jefferson County - Arkansas Jefferson County - Arkansas(f) Pope County - Arkansas Independence County - Arkansas St. Charles Parish - Louisiana Independence County - Arkansas Mississippi Business...

  • Page 82
    ... Department of Energy (DOE) for spent nuclear fuel disposal service. The contracts include a one-time fee for generation prior to April 7, 1983. Entergy Arkansas is the only Entergy company that generated electric power with nuclear fuel prior to that date and includes the one-time fee, plus accrued...

  • Page 83
    ... exceeds specified strike prices, the Non-Utility Nuclear business will pay 50% of the amount exceeding the strike prices to NYPA. These payments, if required, will be recorded as adjustments to the purchase price of the plants. The annual energy sales subject to the value sharing agreements are...

  • Page 84
    ... in Note 14 to the consolidated financial statements. All outstanding preferred stock is cumulative. Entergy Gulf States' preferred stock with sinking fund retirements were 34,500 shares in 2005, 2004, and 2003. Entergy Gulf States has annual sinking fund requirements of $3.45 million through 2008...

  • Page 85
    ... Plan of Entergy Corporation and Subsidiaries, and certain other stock benefit plans. The Directors' Plan awards to non-employee directors a portion of their compensation in the form of a fixed number of shares of Entergy Corporation common stock. Equity Compensation Plan Information Entergy grants...

  • Page 86
    ... would require estimated payments of approximately $130.4 million in 2006, and a total of $3.4 billion for the years 2006 through 2031. Entergy Louisiana currently recovers the costs of the purchased energy through its fuel adjustment clause. In an LPSC-approved settlement related to tax benefits...

  • Page 87
    ... for Entergy Corporation, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. In addition to the OIL program, Entergy has purchased additional coverage for some of its non-regulated, non-generation assets through Zurich American. This policy serves...

  • Page 88
    ... may vary from the estimates because of regulatory requirements, changes in technology, and increased costs of labor, materials, and equipment. During 2004 and 2005, Entergy updated decommissioning cost studies for ANO 1 and 2, River Bend, Grand Gulf, Waterford, and a non-utility plant. In the first...

  • Page 89
    ... that assesses domestic nuclear utilities with fees for the decontamination and decommissioning (D&D) of the DOE's past uranium enrichment operations. Annual assessments in 2005 were $4.5 million for Entergy Arkansas, $1.1 million for Entergy Gulf States, $1.7 million for Entergy Louisiana, and...

  • Page 90
    ... As of December 31, 2005, Entergy had capital leases and non-cancelable operating leases for equipment, buildings, vehicles, and fuel storage facilities (excluding nuclear fuel leases and the Grand Gulf and Waterford 3 sale and leaseback transactions) with minimum lease payments as follows (in...

  • Page 91
    .... Entergy Corporation and its subsidiaries fund pension costs in accordance with contribution guidelines established by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. The assets of the plans include common and preferred stocks...

  • Page 92
    ...million for Entergy Gulf States. Such obligations are being amortized over a 20-year period that began in 1993. For the most part, the domestic utility companies and System Energy recover SFAS 106 costs from customers and are required to fund postretirement benefits collected in rates to an external...

  • Page 93
    ...349 million (excluding about $1 million in employee contributions) to its qualified pension plans in 2006. $107 million of this contribution was originally planned for 2005, however it was delayed as a result of the Katrina Emergency Tax Relief Act. Entergy expects to contribute $60 million to other...

  • Page 94
    ... O N Entergy's reportable segments as of December 31, 2005 are U.S. Utility and Non-Utility Nuclear. U.S. Utility generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, and provides natural gas utility service in portions of Louisiana...

  • Page 95
    ... (loss) of unconsolidated equity affiliates Interest and other charges Income taxes Loss from discontinued operations Cumulative effect of accounting change Net income Preferred dividend requirements Earnings applicable to common stock Total assets Investments in affiliates - at equity Cash paid...

  • Page 96
    ...through Gulf South Pipeline. Entergy-Koch sold both of these businesses in the fourth quarter of 2004, and Entergy-Koch is no longer an operating entity. Co-generation project that produces power and steam on an industrial and merchant basis in the Lake Charles, Louisiana area. Wind-powered electric...

  • Page 97
    ... for electricity and natural gas. The total cost of such services in 2004 and 2003 was approximately $9.5 million and $15.9 million, respectively. There were no related party transactions between Entergy-Koch and Entergy in 2005. Entergy Louisiana and Entergy New Orleans entered into purchase power...

  • Page 98
    ... of time that a security has been in a loss position, the current performance of that security, and whether decommissioning costs are recovered in rates. Due to the regulatory treatment of decommissioning collections and trust fund earnings, Entergy Arkansas, Entergy Gulf States, Entergy Louisiana...

  • Page 99
    ... owns 100 percent of the common stock of Entergy New Orleans, has continued to supply general and administrative services, and has provided debtor-in-possession financing to Entergy New Orleans. Uncertainties surrounding the nature, timing, and specifics of the bankruptcy proceedings, however, have...

  • Page 100
    ... East County Line Road, Jackson, Mississippi. The meeting will begin at 10 a.m. (CDT). SHAREHOLDER NEWS D I V I D E N D PAY M E N T S The entire amount of dividends paid during 2005 is taxable as ordinary income. The Board of Directors declares dividends quarterly and sets the record and payment...

  • Page 101
    ... of Conoco, Houston, Texas. Joined the Entergy Board in 2005. Age, 64 Claiborne P. Deming* President and Chief Executive Officer and Director of Murphy Oil Corporation, El Dorado, Arkansas. An Entergy director since 2002. Age, 51 Alexis Herman Chair and Chief Executive Officer of New Ventures, Inc...

  • Page 102
    Enduring O UR C OMMITMENT TO S AFELY G ENERATE C LEAN , R ELIABLE , A FFORDABLE P OWER FOR O UR C USTOMERS E N T E R G Y C O R P O R AT I O N 500 CLINTON CENTER DRIVE CLINTON, MS 39056 W W W. E N T E R G Y. C O M