Entergy 2009 Annual Report Download - page 9

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5
ENTERGY CORPORATION AND SUBSIDIARIES
MANAGEMENT'S FINANCIAL DISCUSSION AND ANALYSIS
Entergy operates primarily through two business segments: Utility and Non-Utility Nuclear.
Utility generates, transmits, distributes, and sells electric power in service territories in four states that
include portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and
operates a small natural gas distribution business.
Non-Utility Nuclear owns and operates six nuclear power plants located in the northern United States and
sells the electric power produced by those plants primarily to wholesale customers. This business also
provides services to other nuclear power plant owners.
In addition to its two primary, reportable, operating segments, Entergy also operates the non-nuclear wholesale assets
business. The non-nuclear wholesale assets business sells to wholesale customers the electric power produced by
power plants that it owns while it focuses on improving performance and exploring sales or restructuring
opportunities for its power plants. Such opportunities are evaluated consistent with Entergy's market-based point-of-
view.
Following are the percentages of Entergy's consolidated revenues and net income generated by its operating
segments and the percentage of total assets held by them:
% of Revenue % of Net Income % of Total Assets
Segment 2009 2008 2007 2009 2008 2007 2009 2008 2007
Utility 75 79 80 57 49 61 80 77 78
Non-Utility Nuclear 24 19 18 50 64 46 28 21 21
Parent Company &
Other Business Segments 1 2 2 (7) (13) (7) (8) 2 1
Plan to Pursue Separation of Non-Utility Nuclear
In November 2007, the Board approved a plan to pursue a separation of the Non-Utility Nuclear business
from Entergy through a tax-free spin-off of the Non-Utility Nuclear business to Entergy shareholders. Upon
completion of the Board-approved spin-off plan, Enexus Energy Corporation, a wholly-owned subsidiary of Entergy,
would be a new, separate, and publicly-traded company. In addition, under the plan, Enexus and Entergy are
expected to enter into a nuclear services business joint venture, EquaGen LLC, with 50% ownership by Enexus and
50% ownership by Entergy. The EquaGen board of managers would be comprised of equal membership from both
Entergy and Enexus.
Once the spin-off transaction is complete, Entergy Corporation's shareholders will own all Entergy common
stock and will receive a distribution of 80.1 percent of the Enexus common shares. Entergy will transfer the
remaining Enexus common shares to a trust. While held by the trust, the Enexus common shares will be voted by the
trustee in the same proportion as the other Enexus common shares on any matter submitted to a vote of the Enexus
shareholders. Within a period of up to 18 months after the spin-off, Entergy is expected to exchange the Enexus
common shares retained in the trust for Entergy common shares. Enexus common shares not ultimately exchanged, if
any, will be distributed to Entergy shareholders.
Enexus' business would be substantially comprised of Non-Utility Nuclear's assets, including its six nuclear
power plants, and Non-Utility Nuclear's power marketing operation. Entergy Corporation's remaining business
would primarily be comprised of the Utility business. EquaGen would operate the nuclear assets owned by Enexus
under the Board-approved plan, and provide certain services to the Utility's nuclear operations. EquaGen would also
be expected to offer nuclear services to third parties, including decommissioning, plant relicensing, plant operations,
and ancillary services.
7