Entergy 2005 Annual Report Download - page 34

ENTERGY CORPORATION AND SUBSIDIARIES 2005
■resolution of pending and future rate cases and
negotiations, including various performance-based
rate discussions and implementation of new Texas
legislation, and other regulatory proceedings, including
those related to Entergy’s System Agreement and
Entergy’s utility supply plan, recovery of storm costs, and
recovery of fuel and purchased power costs
■Entergy’s ability to manage its operation and
maintenance costs
■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 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 require-
ments 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 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, changes in general
corporate ratings, and changes in the rating agencies’
ratings criteria
■changes in inflation, interest rates, and foreign currency
exchange rates
■Entergy’s ability to purchase and sell assets at attractive
prices and on other attractive terms
■volatility and changes in markets for electricity, natural
gas, uranium, and other energy-related commodities
■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 establishment of a regional transmission
organization that includes Entergy’s utility service
territory, and the application of market power criteria
by the FERC
■changes in regulation of nuclear generating facilities and
nuclear materials and fuel, including possible shutdown of
nuclear generating facilities, particularly those in the
northeastern United States
■uncertainty regarding the establishment of interim or
permanent sites for spent nuclear fuel storage
and disposal
■resolution of pending or future applications for
license extensions or modifications of nuclear
generating facilities
■changes in law resulting from the new federal energy
legislation, including the effects of PUHCA repeal
■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, including uncertainties
associated with efforts to remediate the effects of
Hurricanes Katrina and Rita and recovery of costs
associated with restoration including Entergy’s ability to
obtain financial assistance from governmental authorities
in connection with these storms
■the outcome of the Chapter 11 bankruptcy proceeding
of Entergy New Orleans, and the impact of this
proceeding on other Entergy companies
■advances in technology
■the potential effects of threatened or actual terrorism
and war
■the effects of Entergy’s strategies to reduce
tax payments
■the effects of litigation and government investigations
■changes in accounting standards, corporate
governance, and securities law requirements
■Entergy’s ability to attract and retain talented
management and directors
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FORWARD-LOOKING INFORMATION
In this filing and 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:
FINANCIAL REVIEW
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GAAP TO NON-GAAP RECONCILIATION
Earnings Per Share 2005 2004
As-Reported $4.19 $ 3.93
Special Items $0.21 $(0.13)
Operational $4.40 $ 3.80