In this combined report and from time to time, Entergy Corporation and the Registrant Subsidiaries each makes statements as a registrant concerning its expectations, beliefs, plans, objectives, goals, projections, 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 each of these registrants 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, these registrants undertake 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 (a) those factors discussed or incorporated by reference in Item 1A. Risk Factors, (b) those factors discussed or incorporated by reference in Management’s Financial Discussion and Analysis, and (c) the following factors (in addition to others described elsewhere in this combined report and in subsequent securities filings):

Certain abbreviations or acronyms used in the text and notes are defined below:

Entergy operates primarily through two business segments: Utility and Entergy Wholesale Commodities.

Following are the percentages of Entergy’s consolidated revenues generated by its operating segments and the percentage of total assets held by them. Net income or loss generated by the operating segments is discussed in the sections that follow.

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing 20172020 to 20162019 showing how much the line item increased or (decreased) in comparison to the prior period.

Following is an analysis of the change in net revenueoperating revenues comparing 20172020 to 2016.

The retail electric price variance is primarily due to:

Following are key performance measures for Entergy Wholesale Commodities nuclear fleet resulting from more outage daysfor 2020 and 2019:

Other regulatory charges (credits) - net for 2020 included a provision of $43.5 million to reflect the 2019 historical year netting adjustment included in March 2016.the APSC’s December 2020 order in Entergy Arkansas’s 2020 formula rate plan proceeding. See Note 142 to the financial statements for discussion of the Union Power Station purchase.Entergy Arkansas’s 2020 formula rate plan proceedings.

Other income increaseddecreased primarily due to higher realized gains in 2017 as compared to the prior year on the decommissioning trust fund investments, including portfolio rebalancing in 2017, and an increaseto:

Other operation and maintenance expenses increaseddecreased from $915$678 million for 20162019 to $929$500 million for 20172020 primarily due to:

Other expenses decreased primarily due to the absence of decommissioning expense from the Pilgrim plant, after it was sold to Exelon in March 2017. See Note 14 to the financial statements for discussion of the sale of FitzPatrick.

Other income increased primarily due to higher realized gains in 2017 as compared to the prior year on the decommissioning trust fund investments, including the result of portfolio rebalancing in 2017, and the increase in value realized upon the receipt from NYPAabsence of the decommissioning trust funds for the Indian Point 3elimination of other income at Entergy Wholesale Commodities after repayment of an intercompany loan in second quarter 2020 and FitzPatrick plantsa $15 million charitable donation made in January 2017. See Note 92019 to the financial statements for discussion of the trust transfer agreement with NYPA.

See Note 3 to the financial statements for a reconciliation of the federal statutory rate of 35%21% to the effective income tax rates, and for additional discussion regarding income taxes.

The effective income tax rate for 20162019 was 59.1%(15.6%). The difference in the effective income tax rate versus the federal statutory rate of 35% for 201621% was primarily due to a change in the tax classificationamortization of excess accumulated deferred income taxes, recognition of a legal entity that owned onedeferred tax asset associated with a previously unrecognized net operating loss carryover, a charitable tax deduction, and the effects of therestructuring transactions within Entergy Wholesale Commodities, nuclear power plants and the reversal of a portion of the provision for uncertain tax positions as a result of the settlement of the 2010-2011 IRS audit, partially offset by state income taxesvaluation allowances recorded against deferred tax assets associated with the disposition of Vermont Yankee and certain bookthe carryover of business interest expense. See Notes 2 and tax differences related3 to utility plant items.the financial statements for a discussion of the effects and regulatory activity regarding the Tax Cuts and Jobs Act. See Note 3 to the financial statements for additionala discussion of the change ininternal restructuring at Entergy Wholesale Commodities. See Note 14 to the financial statements for a discussion of the tax classification andeffects of the tax settlement.Vermont Yankee disposition.

These plant sales and realized a pre-tax gain of $154 million oncontracts to sell are the sale. See Note 14 to the financial statements for further discussion of the Rhode Island State Energy Center sale.