Entergy 2012 Annual Report Download - page 24

n resolution of pending and future rate cases and negotiations,
including various performance-based rate discussions, Entergy’s
utility supply plan, and recovery of fuel and purchased power costs;
n the termination of Entergy Arkansas’s and Entergy Mississippi’s
participation in the System Agreement in December 2013 and
November 2015, respectively;
n regulatory and operating challenges and uncertainties associated
with the Utility operating companies’ proposal to move to the
MISO RTO;
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, and the application of
more stringent transmission reliability requirements or market
power criteria by the 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
Entergy Wholesale Commodities business, and the effects of new
or existing safety or environmental concerns regarding nuclear
power plants and nuclear fuel;
n resolution of pending or future applications, and related
regulatory proceedings and litigation, for license renewals
or modifications of nuclear generating facilities;
n the performance of and deliverability of power from Entergy’s
generation resources, including 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 merchant generating
facilities and the ability to hedge, meet credit support
requirements for hedges, sell power forward or otherwise reduce
the market price risk associated with those facilities, including the
Entergy Wholesale Commodities nuclear plants;
n 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
or legislation subjecting energy derivatives used in hedging and
risk management transactions to governmental regulation;
n changes in environmental, tax, and other laws, including
requirements for reduced emissions of sulfur, nitrogen, carbon,
greenhouse gases, mercury, and other regulated air emissions,
and changes in costs of compliance with environmental and other
laws and regulations;
n uncertainty regarding the establishment of interim or permanent
sites for spent nuclear fuel and nuclear waste storage and disposal;
n risks associated with the proposed spin-off and subsequent merger
of Entergy’s electric transmission business into a subsidiary of
ITC Holdings Corp., including the risk that Entergy and the
Utility operating companies may not be able to timely satisfy the
conditions or obtain the approvals required to complete such
transaction or such approvals may contain material restrictions or
conditions, and the risk that if completed, the transaction may not
achieve its anticipated results;
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, ice storms, or
other weather events and the recovery of costs associated with
restoration, including accessing funded storm reserves, federal
and local cost recovery mechanisms, securitization, and insurance;
n effects of climate change;
n changes in the quality and availability of water supplies;
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 economic conditions in
Entergy’s Utility service area and the Northeast United States and
events that could influence economic conditions in those areas;
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 share repurchase programs, 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, cyber
attacks or data security breaches, including increased security
costs, and war or a catastrophic event such as a nuclear accident
or a natural gas pipeline explosion;
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 future wage and employee benefit costs, including changes
in discount rates and returns on benefit plan assets;
n changes in decommissioning trust fund values or earnings or
in the timing of or cost to decommission nuclear plant sites;
n the effectiveness of Entergy’s risk management policies and
procedures and the ability and willingness of its counterparties
to satisfy their financial and performance commitments;
n factors that could lead to impairment of long-lived assets; and
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.
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 contained in the Form 10-K for the year ended December 31, 2012, (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 2012 2011
As-Reported $ 4.76 $ 7.55
Less Special Items:
Transmission business spin-merge expenses $(0.21) $ –
Vermont Yankee asset impairment $(1.26) $(0.07)
Total Special Items $(1.47) $(0.07)
Operational $ 6.23 $ 7. 62
Entergy Corporation and Subsidiaries 2012
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