Entergy 2008 Annual Report Download - page 28

ENTERGY CORPORATION AND SUBSIDIARIES 2008
n resolution of pending and future rate cases and negotiations,
including various performance-based rate discussions and
implementation of Texas restructuring 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
n 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 operations
of the independent coordinator of transmission that includes
Entergy’s utility service territory, and the application of more
stringent transmission reliability requirements or market power
criteria by the Federal Energy Regulatory Commission (FERC)
n changes in regulation of nuclear generating facilities and
nuclear materials and fuel, including possible shutdown of
nuclear generating facilities, particularly those owned or
operated by the Non-Utility Nuclear business
n resolution of pending or future applications for license
extensions or modifications of nuclear generating facilities
n the performance of Entergy’s generating plants, and
particularly the capacity factors at its nuclear generating
facilities
n Entergy’s ability to develop and execute on a point of view
regarding future prices of electricity, natural gas, and other
energy-related commodities
n prices for power generated by Entergy’s non-utility 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
n volatility and changes in markets for electricity, natural gas,
uranium, and other energy-related commodities
n changes in law resulting from federal or state energy legislation
n changes in environmental, tax, and other laws, including
requirements for reduced emissions of sulfur, nitrogen, carbon,
mercury, and other substances
n uncertainty regarding the establishment of interim or
permanent sites for spent nuclear fuel and nuclear waste
storage and disposal
n variations in weather and the occurrence of hurricanes and
other storms and disasters, including uncertainties associated
with efforts to remediate the effects of hurricanes and ice
storms (including most recently, Hurricane Gustav and
Hurricane Ike and the January 2009 ice storm in Arkansas)
and recovery of costs associated with restoration, including
accessing funded storm reserves, federal and local cost recovery
mechanisms, securitization, and insurance
n Entergy’s ability to manage its capital projects and operation
and maintenance costs
n Entergy’s ability to purchase and sell assets at attractive prices
and on other attractive terms
n the economic climate, and particularly growth in Entergy’s
Utility service territory and the Northeast United States
n the effects of Entergy’s strategies to reduce tax payments
n 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
n 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
n changes in inflation and interest rates
n the effect of litigation and government investigations or
proceedings
n advances in technology
n the potential effects of threatened or actual terrorism and war
n Entergy’s ability to attract and retain talented management
and directors
n changes in accounting standards and corporate governance
n declines in the market prices of marketable securities and
resulting funding requirements for Entergy’s defined benefit
pension and other postretirement benefit plans
n changes in the results of decommissioning trust fund earnings
or in the timing of or cost to decommission nuclear plant sites
n the ability to successfully complete merger, acquisition, or
divestiture plans, regulatory or other limitations imposed as a
result of merger, acquisition, or divestiture, and the success of
the business following a merger, acquisition, or divestiture
n and the risks inherent in the contemplated Non-Utility Nuclear
spin-off, joint venture, and related transactions. Entergy
Corporation cannot provide any assurances that the spin-off
or any of the proposed transactions related thereto will be
completed, nor can it give assurances as to the terms on which
such transactions will be consummated. The transaction is
subject to certain conditions precedent, including regulatory
approvals and the final approval by the Board.
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Forward-Looking Information
In this report and from time to time, Entergy Corporation 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 “may,” “will,” “could,” “project,” “believe,” “anticipate,” “intend,”
“expect,” “estimate,” “continue,” “potential,” “plan,” “predict,” “forecast,” and other similar words or 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 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 or incorporated by
reference in (a) Item 1A. Risk Factors, in the 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):
GAAP TO NON-GAAP RECONCILIATION
Earnings Per Share 2008 2007
As-Reported $ 6.20 $ 5.60
Less Special Items $(0.31) $(0.16)
Operational $ 6.51 $ 5.76
ENTERGY CORPORATION AND SUBSIDIARIES 2008