Entergy 2006 Annual Report Download - page 40

ENTERGY CORPORATION AND SUBSIDIARIES 2
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FORWARD-LOOKING INFORMATION
In this report and from time to time, Entergy makes statements as a registrant 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” and
“estimates” and similar expressions are intended to identify forward-looking statements but are not the only means to identify
these statements. Although Entergy 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, 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. There are factors that could cause actual results to differ
materially from those expressed or implied in the forward-looking statements, including those factors discussed in (a) Item 1A. Risk
Factors, in Entergy’s Form 10-K, (b) Management’s Financial Discussion and Analysis and (c) the following factors (in addition to
others described elsewhere in this report and in subsequent securities filings):
Financial Review
■resolution of pending and future rate cases and
negotiations, including various performance-based rate
discussions and implementation of Texas 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
■Entergy’s and its subsidiaries’ ability to manage their
operation and maintenance costs
■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 implementation of the independent coordinator
of transmission that includes Entergy’s utility service
territory, and the application of market power criteria by
the FERC
■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
■the performance of Entergy’s generating plants,
and particularly the capacity factors at its nuclear
generating facilities
■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, and interest rates
■Entergy’s ability to develop and execute on a point of view
regarding future prices of electricity, natural gas, and
other energy-related commodities
■Entergy’s ability to purchase and sell assets at attractive
prices and on other attractive terms
■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
■volatility and changes in markets for electricity, natural
gas, uranium, and other energy-related commodities
■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
■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 and corporate governance
■Entergy’s ability to attract and retain talented management
and directors
GAAP TO NON-GAAP RECONCILIATION
Earnings Per Share 2006 2005
As-Reported $5.36 $ 4.19
Less Special Items $0.64 $(0.21)
Operational $4.72 $ 4.40