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, 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 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 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: Utility and Entergy Wholesale Commodities.

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing the second quarter 20182019 to the second quarter 20172018 showing how much the line item increased or (decreased) in comparison to the prior period:

The effective income tax rate was 884.2% for the second quarter 2018. The difference in the effective income tax rate for the second quarter 2018 versus the federal statutory rate of 21% was primarily due to amortization of excess accumulated deferred income taxes and an IRS audit settlement for the 2012-2013 tax returns. See Notes 2 andNote 10 to the financial statements herein and Notes 2 and 3 to the financial statements in the Form 10-K for a discussion of the effects and regulatory activity regarding the Tax Cuts and Jobs Act. See Note 103 to the financial statements hereinin the Form 10-K for a discussion of the IRS audit settlement.

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing the six months ended June 30, 20182019 to the six months ended June 30, 20172018 showing how much the line item increased or (decreased) in comparison to the prior period:

Depreciation and amortization expenses increased primarily due to additions to plant in service, including the St. Charles Power Station, partially offset by updated depreciation rates used in calculating Grand Gulf plant depreciation and amortization expenses under the Unit Power Sales Agreement as part of operationsa settlement approved by the FERC in August 2018. See Note 2 to the financial statements in the Form 10-K for further discussion of the Unit Power Sales Agreement.

The asset write-offs, impairments, and related charges variance is primarily due to impairment charges of $90 million ($71 million net-of-tax) in the six months ended June 30, 2017 include2019 compared to impairment charges of $405$142 million ($263112 million net-of-tax) duein the six months ended June 30, 2018. The impairment charges are primarily related to nuclear refueling outage spending and expenditures for capital assets. These costs beingwere charged directly to expense as incurred

Other expenses decreasedincreased primarily due to the absence of decommissioning expense from the FitzPatrick plant after it was sold to Exelonan increase in March 2017 and a reduction in deferrednuclear refueling outage expenses as a result of the amortization in 2019 of costs relatedassociated with a refueling outage at Palisades.

Interest expense increased due to higher variable interest rates on commercial paper in 2019. See Note 4 to the impairmentsfinancial statements herein and in the Form 10-K for a discussion of Entergy’s commercial paper program.

The effective income tax rate was 8.1% for the six months ended June 30, 2019. The difference in the effective income tax rate for the six months ended June 30, 2019 versus the federal statutory rate of 21% was primarily due to amortization of excess accumulated deferred income taxes, partially offset by the tax effects of the Indian Point 3, Indian Pointdisposition of Vermont Yankee. See Note 10 to the financial statements herein and Notes 2 and Palisades plants and related assets. See Note 143 to the financial statements in the Form 10-K for a discussion of the saleeffects and regulatory activity regarding the Tax Cuts and Jobs Act. See Note 10 to the financial statements herein for a discussion of FitzPatrick and impairments and related charges.the tax effects of the Vermont Yankee disposition.

The effective income tax rate was (160%) for the six months ended June 30, 2018. The difference in the effective income tax rate for the six months ended June 30, 2018 versus the federal statutory rate of 21% was primarily due to amortization of excess accumulated deferred income taxes and an IRS audit settlement for the 2012-2013 tax returns. See Notes 2 andNote 10 to the financial statements herein and Notes 2 and 3 to the financial statements in the Form 10-K for a discussion of the effects and regulatory activity regarding the Tax Cuts and Jobs Act. See Note 10 to the financial statements herein for a discussion of the IRS audit settlement.

As discussed in more detail in Note 16 to the financial statements herein, in January 2019, Entergy transferred 100% of the membership interests in Entergy Nuclear Vermont Yankee, LLC, the owner of the Vermont Yankee plant, to a subsidiary of NorthStar. In March 2018,

As consideration for the transfer to Holtec of its interest in Indian Point, Entergy will receive nominal cash consideration. The Indian Point transaction is expected to result in a loss based on the difference between Entergy’s adjusted net investment in the subsidiaries at closing and the sale price net of any agreed adjustments. As of June 30, 2019, Entergy’s adjusted net investment in the Indian Point units was $265 million. The primary variables in the ultimate loss that Entergy will incur are the values of the nuclear decommissioning trusts and the asset retirement obligations at closing, financial results from the plant until the closing, and any changes in Entergy’s investment in Entergy Nuclear Vermont Yankee before closing.

Entergy expects to incur employee retention and severance expenses associated with management’s strategy to reduce the size ofexit the Entergy Wholesale Commodities’ merchant fleetpower business of approximately $155$120 million in 2018,2019, of which $60$56 million has been incurred as of June 30, 2018,2019, and a total of approximately $215$120 million from 20192020 through mid-2022.2022. In addition, Entergy Wholesale Commodities incurred impairment charges related to nuclear fuel spending, nuclear refueling outage spending, and expenditures for capital assets of $69$16 million for the three months ended June 30, 20182019 and $142$90 million for the six months ended June 30, 2018.2019. These costs were charged to expense as incurred as a result of the impaired value of certain of the Entergy Wholesale Commodities nuclear plants’ long-lived assets due to the

Entergy’s debt to capital ratio is shown in the following table. The increasedecrease in the debt to capital ratio for Entergy as of June 30, 20182019 is primarily due to the net issuancesettlement of debtthe remaining equity forwards in 2018.2019. See Note 3 to the financial statements herein for a discussion of the equity forward sale agreements.

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in August 2022.September 2023.  The facility includes fronting commitments for the issuance of letters of credit against $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 average interest rate for the six months ended June 30, 20182019 was 3.34%4.05% on the drawn portion of the facility. Following is a summary of the borrowings outstanding and capacity available under the facility as of June 30, 2018:2019:

In January 2019, Entergy Nuclear Vermont Yankee has awas transferred to NorthStar and its credit facility guaranteedwas assumed by Vermont Yankee Asset Retirement Management, LLC, Entergy Corporation withNuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $145$139 million thatand expires in November 2020. As of June 30, 2018, $1082019, $139 million in cash borrowings were outstanding under the credit facility.  The weighted average interest rate for the six months ended June 30, 20182019 was

The updated capital plan for 2019-2021 reflects incremental capital investments to improve reliability and enable new customer products and services. The capital plan includes specific investments such as the St. Charles Power Station, Lake Charles Power Station, Washington Parish Energy Center, Choctaw Generating Station, Sunflower Solar Facility, New Orleans Power Station, and Montgomery County Power Station; transmission projects to enhance reliability, reduce congestion, and enable economic growth; distribution spending to enhance reliability and improve service to customers, including advanced meters and related investments; resource planning, including potential

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 July 20182019 meeting, the Board declared a dividend of $0.89$0.91 per share, which is the same quarterly dividend per share that Entergy has paid since the fourththird quarter 2017.2018.

As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the six months ended June 30, 20182019 and 20172018 were as follows:

Net cash flow provided by operating activities increased by $260decreased $27 million for the six months ended June 30, 20182019 compared to the six months ended June 30, 20172018 primarily due to:

Net cash flow used in investing activities increased $159$96 million for the six months ended June 30, 20182019 compared to the six months ended June 30, 20172018 primarily due to:

Net cash flow provided by financing activities increased $184$246 million for the six months ended June 30, 20182019 compared to the six months ended June 30, 20172018 primarily due to:

See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding these proceedings.

See Note 2 to the financial statements herein for updates to the discussion in the Form 10-K regarding federal regulatory proceedings.

As a wholesale generator, Entergy Wholesale Commodities’ core business is selling energy, measured in MWh, to its customers.  Entergy Wholesale Commodities enters into forward contracts with its customers and also sells energy in the day ahead or spot markets.  Entergy Wholesale Commodities also sells unforced capacity, which allows load-serving entities to meet specified reserve and related requirements placed on them by the ISOs in their respective areas.  Entergy Wholesale Commodities’ forward physical power contracts consist of contracts to sell energy only, contracts to sell capacity only, and bundled contracts in which it sells both capacity and energy.  While the terminology and payment mechanics vary in these contracts, each of these types of contracts requires Entergy Wholesale Commodities to deliver MWh of energy, make capacity available, or both. In addition to its forward physical power contracts, Entergy Wholesale Commodities may also usesuse a combination of financial contracts, including swaps, collars, and options, to manage forward commodity price risk.  Certain hedge volumes have price downside and upside relative to market price movement.  The contracted minimum, expected value, and sensitivities are provided in the table below to show potential variations. The sensitivities may not reflect the total maximum upside potential from higher market prices. The information contained in the following table represents projections at a point in time and will vary over time based on numerous factors, such as future market prices, contracting activities, and generation. Following is a summary of Entergy Wholesale Commodities’ current forward capacity and generation contracts as well as total revenue projections based on market prices as of June 30, 2018 (20182019 (2019 represents the remainder of the year):

Some of the agreements to sell the power produced by Entergy Wholesale Commodities’ power plants contain provisions that require an Entergy subsidiary to provide credit support to secure its obligations under the agreements. The Entergy subsidiary is required to provide credit support based upon the difference between the current market prices and contracted power prices in the regions where Entergy Wholesale Commodities sells power. The primary form of credit support to satisfy these requirements is an Entergy Corporation guaranty.guarantee.  Cash and letters of credit are also acceptable forms of credit support. At June 30, 2018,2019, based on power prices at that time, Entergy had liquidity exposure of $117$75 million under the guarantees in place supporting Entergy Wholesale Commodities transactions and $17$21 million of posted cash collateral. In the event of a decrease in Entergy Corporation’s credit rating to below investment grade, based on power prices as of June 30, 2018,2019, Entergy would have been required to provide approximately $48$30 million of additional cash or letters of credit under some of the agreements. As of June 30, 2018,2019, the liquidity exposure associated with Entergy Wholesale Commodities assurance requirements, including return of previously posted collateral from counterparties, would increase by $339$169 million for a $1 per MMBtu increase in gas prices in both the short- and long-term markets.

As of June 30, 2018,2019, substantially all of the credit exposure associated with the planned energy output under contract for Entergy Wholesale Commodities nuclear plants through 2022 is with counterparties or their guarantors that have public investment grade credit ratings.

See Note 1 to the financial statements in the Form 10-K for discussion of new accounting pronouncements. The following is an update to that discussion.