Entergy 2007 Annual Report Download - page 42

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Entergy Corporation and Subsidiaries 2007
Fi nancing Act iv it ie s
2007 Compared to 2006
Net cash used in nancing activities decreased by $862 million in 2007
compared to 2006. e following activity is notable in comparing 2007
to 2006:
n฀ Entergy Corporation increased the net borrowings under its credit
facility by $1,431 million in 2007, compared to increasing the net
borrowings under its credit facilities by $35 million in 2006. See
Note 4 to the nancial statements for a description of the Entergy
Corporation credit facility.
n฀ A subsidiary of Entergy Texas issued $329.5 million of
securitization bonds in June 2007. See Note 5 to the nancial
statements for additional information regarding the securitization
bonds.
n฀ Entergy Mississippi redeemed $100 million of rst mortgage bonds
in 2007 and issued $100 million of rst mortgage bonds in 2006.
n฀ Entergy Corporation repurchased $1,216 million of its common
stock in 2007, and repurchased $584 million of its common stock
in 2006.
n฀ Entergy Louisiana Holdings, Inc. redeemed all $100.5 million of its
outstanding preferred stock in June 2006.
2006 Compared to 2005
Net cash used in nancing activities was $1,084 million in 2006
compared to net cash ow provided by nancing activities of $496
million in 2005. Following is a description of the signicant nancing
activity aecting this comparison:
n฀ Entergy Louisiana Holdings, Inc. redeemed all $100.5 million of its
outstanding preferred stock in June 2006.
n฀ Entergy Corporation increased the net borrowings on its credit
facilities by $35 million in 2006 and increased the net borrowings
by $735 million in 2005. See Note 4 to the nancial statements for
a description of the Entergy Corporation credit facilities.
n฀ Net issuances of long-term debt by the Utility provided $50 million
in 2006 and provided $462 million in 2005. See Note 5 to the
nancial statements for the details of long-term debt.
n฀ Entergy Corporation repurchased $584 million of its common
stock in 2006 and $878 million of its common stock in 2005.
SIGNIFICANT FACTORS AND KNOWN TRENDS
Following are discussions of signicant factors and known trends
aecting Entergy’s business, including rate regulation and fuel-cost
recovery, federal regulation, and market and credit risk sensitive
instruments.
ST A T E A N D LO C A L RA T E RE G U L AT I O N A N D
FU E L -CO S T RE C O V E RY
e rates that the Utility operating companies and System Energy
charge for their services signicantly inuence Entergy’s nancial
position, results of operations, and liquidity. ese companies are
regulated and the rates charged to their customers are determined in
regulatory proceedings. Governmental agencies, including the APSC,
the City Council, the LPSC, the MPSC, the Public Utility Commission
of Texas (PUCT), and the FERC, are primarily responsible for approval
of the rates charged to customers. Following is a summary of base rate
and related proceedings, and proceedings involving Hurricane Katrina
and Hurricane Rita cost recovery. ese proceedings are discussed in
more detail in Note 2 to the nancial statements.
Management’s Financial Discussion and Analysis conti nued