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,” “goal,” “commitment,” “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 undertakeeach registrant 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 (a) those factors discussed or incorporated by reference in (a) Item 1A. Risk Factors in the Form 10-K and in this report, (b) those factors discussed or incorporated by reference in Management’s Financial Discussion and Analysis in the Form 10-K and in this report, and (c) the following factors (in addition to others described elsewhere in this combined report and in subsequent securities filings):

Entergy operates primarily through two business segments:a single reportable segment, Utility. The Utility and Entergy Wholesale Commodities.

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing the thirdsecond quarter 20172023 to the thirdsecond quarter 20162022 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 the thirdsecond quarter 20172023 to the thirdsecond quarter 2016:

The return of unprotected excess accumulated deferred income taxes to customers resulted from activity at the Utility operating companies in response to the enactment of the Tax Cuts and Jobs Act. The return of unprotected excess accumulated deferred income taxes began in second quarter 2018. In the second quarter 2022, $16 million was returned to customers through reductions in operating revenues. There was no return of unprotected excess accumulated deferred income taxes for Entergy or the Utility operating companies for the second quarter 2023. There was no effect on net income as the reductions in operating revenues were offset by an increasereductions in industrial, residential, and commercial usage. The increase in industrial usage is primarily dueincome tax expense. See Note 2 to new customersthe financial statements in the primary metals industry, expansion projects inForm 10-K for further discussion of regulatory activity regarding the chemicals industry,Tax Cuts and an increase in demand for existing customers in the chemicals, petroleum refining, and industrial gases industries.Jobs Act.

The retail electric price variance is primarily due to:

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in depreciation rates at Entergy Texas, effective with the effectsapproval of recordingan interim increase in the third quarter 2016 final court decisionsannual base rate in several lawsuits against the DOE related to spent nuclear fuel storage costs. The damages awarded included the reimbursement of approximately $8 million of spent nuclear fuel storage costs previously recorded as depreciation expense.June 2023. See Note 82 to the financial statements herein and in the Form 10-K for discussion of the 2022 base rate case filing at Entergy Texas.

Other income increased primarily due to:

Other operation and maintenance expenses decreased from $236 million for the third quarter 2016 to $199 million for the third quarter 2017 primarily due to the absence of other operation and maintenance expenses from the FitzPatrick plantPalisades, after it was soldshut down in May 2022.

Interest expense increased primarily due to higher variable interest rates on commercial paper in 2023, partially offset by the redemption by Entergy, in July 2022, of $650 million of 4.00% Series senior notes. See Note 134 to the financial statements herein for discussion of the sale of FitzPatrick.Entergy’s commercial paper program.

Other income increasedexpenses decreased primarily due to higher realized gainsthe absence of decommissioning expense and nuclear refueling outage expense as a result of the shutdown and sale of Palisades in second quarter 2022.

The effective income tax rate was 37.6%25.6% for the thirdsecond quarter 2017.2023. The difference in the effective income tax rate for the thirdsecond quarter 20172023 versus the federal statutory rate of 35%21% was primarily due to the accrual for state income taxes, partially offset by book and tax differences related to the allowance for equity funds used during construction.taxes.

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing the ninesix months ended SeptemberJune 30, 20172023 to the ninesix months ended SeptemberJune 30, 20162022 showing how much the line item increased or (decreased) in comparison to the prior period:

Total electric energy sales for Utility for the financial statements in the Form 10-K for discussion of the Union Power Station purchase.

Depreciation and amortization expenses increased primarily due to additions to plant in service includingand an increase in depreciation rates at Entergy Texas, effective with the Union Power Station purchasedapproval of an interim increase in March 2016.the annual base rate in June 2023. See Note 142 to the financial statements herein and in the Form 10-K for discussion of the 2022 base rate case filing at Entergy Texas.

Other income increased primarily due to:

Other operation and maintenance expenses decreased primarily due to the absence of expenses from Palisades, after it was shut down in 2016May 2022.

The effective income tax rate was (10.8%)7.3% for the ninesix months ended SeptemberJune 30, 2017.2023. The difference in the effective income tax rate for the ninesix months ended SeptemberJune 30, 20172023 versus the federal statutory rate of 35%21% was primarily due to tax elections to treat as corporations for federalthe reduction in income tax purposes two subsidiaries that each own an Entergy Wholesale Commodities nuclear power plant, which resulted in both permanent and temporary differences under the income tax accounting standards, and the re-determined tax basis of the FitzPatrick plantexpense as a result of its sale onthe March 31, 2017,2023 securitization of Hurricane Ida

In April 2023 the IRS issued Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether expenses to repair, maintain, replace, or improve natural gas transmission and distribution property must be capitalized and provides procedures for taxpayers to obtain automatic consent to change their method of accounting. Entergy intends to adopt this new method of income tax electionaccounting under the safe harbor in accordance with Revenue Procedure 2023-15, which is not expected to have a significant effect on the results of operations, cash flows, or financial condition of Entergy or the Registrant Subsidiaries.

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022.June 2028.  The facility permitsincludes fronting commitments for the issuance of letters of credit against 50%$20 million of the total borrowing capacity of the credit facility.  The commitment fee is currently 0.225% of the undrawn commitment amount.  Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation.  The weighted averageweighted-average interest rate for the ninesix months ended SeptemberJune 30, 20172023 was 2.50%6.34% on the drawn portion of the facility. Following is a summaryAs of the borrowingsJune 30, 2023, amounts outstanding and capacity available under the $3.5 billion credit facility as of September 30, 2017:are:

Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $1.5$2 billion. As of SeptemberJune 30, 2017,2023, Entergy Corporation had $1.3 billion$1,108 million of commercial paper outstanding. The weighted-average interest rate for the ninesix months ended SeptemberJune 30, 20172023 was 1.45%5.19%.

As discussed in the Form 10-K, in July 2021, the APSC directed Entergy Arkansas to file a report within 180 days detailing its efforts to obtain a tax equity partnership for 2018-2020

As discussed in the Form 10-K, in October 2021 the APSC directed Entergy Arkansas to file a report within 180 days detailing its efforts to obtain a tax equity partnership for the purpose of acquiring the West Memphis Solar facility. In November 2016,April 2022, Entergy LouisianaArkansas filed anits tax equity partnership status report and will file subsequent reports until a tax equity partnership is obtained or a tax equity partnership is no longer sought. Closing had been expected to occur in 2023. In March 2022 the counter-party notified Entergy Arkansas that it was seeking changes to certain terms of the build-own-transfer agreement, including both cost and schedule. In January 2023, Entergy Arkansas filed a supplemental application with the LPSCAPSC seeking certificationapproval for a change in the transmission route and updates to the cost and schedule that the public convenience and necessity would be servedwere previously approved by the constructionAPSC. In March 2023 the APSC approved Entergy Arkansas’s supplemental application. The project is currently expected to achieve commercial operation in 2024.

Declarations of dividends on Entergy’s common stock are made at the discretion of the Board.  Among other things, the Board evaluates the level of Entergy’s common stock dividends based upon earnings per share from the Utility operating segment and the Parent and Other portion of the business, financial strength, and future investment opportunities.  At its October 2017July 2023 meeting, the Board declared a dividend of $0.89$1.07 per share, an increase fromwhich is the previous $0.87same quarterly dividend per share that Entergy has paid since the fourththird quarter 2016.2022.

As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the ninesix months ended SeptemberJune 30, 20172023 and 20162022 were as follows: