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behalf of the parties an unopposed motion, which motion was granted by the ALJ with the State Office of Administrative Hearings, to abate the procedural schedule indicating that the parties had reached an agreement in principle. In April 2022, Entergy ~~Arkansas Opportunity Sales Proceeding~~Texas filed on behalf of the parties a unanimous settlement agreement that would adjust its generation cost recovery rider to recover an annual revenue requirement of approximately $92.8 million, which is $4.5 million in incremental annual revenue above the $88.3 million approved in January 2022, related to Entergy Texas’s actual investment in the acquisition of the Hardin County Peaking Facility.

COVID-19 Orders

As discussed in the Form 10-K, in ~~May 2019,~~ March 2020 the PUCT authorized electric utilities to record as a regulatory asset expenses resulting from the effects of the COVID-19 pandemic. In future proceedings, the PUCT will consider whether each utility's request for recovery of these regulatory assets is reasonable and necessary, the appropriate period of recovery, and any amount of carrying costs thereon. As of March 31, 2022, Entergy Texas had a regulatory asset of $10.4 million for costs associated with the COVID-19 pandemic.

Entergy Arkansas ~~filed an application and supporting testimony with~~Opportunity Sales Proceeding

See Note 2 to the ~~APSC requesting approval of a special rider tariff to recover from its retail customers~~financial statements in the ~~costs~~Form 10-K for discussion of the Entergy Arkansas opportunity sales ~~payments made to the other Utility operating companies, and in July 2020 the APSC issued a decision finding that Entergy Arkansas’s application is not~~proceeding. As discussed in the ~~public interest. In~~Form 10-K, in September 2020, Entergy Arkansas filed a complaint in the U.S. District Court for the Eastern District of Arkansas challenging the APSC’s order denying Entergy Arkansas’s request to recover the costs of ~~these payments. The~~the opportunity sales payments made to the other Utility operating companies. In October 2020 the APSC filed a motion to dismiss Entergy Arkansas’s complaint. In March 2022 the court ~~held~~denied the APSC’s motion to dismiss and, in April 2022, issued a ~~hearing~~scheduling order including a trial date in February ~~2021 regarding issues addressed in the pre-trial conference report, and the parties await further instructions from the court.~~2023.

Complaints Against System Energy

See Note 2 to the financial statements in the Form 10-K for information regarding pending complaints against System Energy. The following are updates to that discussion.

Return on Equity and Capital Structure Complaints

As discussed in the Form 10-K, in May 2020 the FERC issued an order on rehearing of Opinion No. 569 (Opinion No. 569-A). In June 2020 the procedural schedule in the System Energy proceeding was further revised in order to allow parties to address the Opinion No. 569-A methodology. The parties and FERC trial staff filed final rounds of testimony in August 2020. The hearing before a FERC ALJ occurred in late-September through early-October 2020, post-hearing briefing took place in November and December 2020.

In March 2021 the FERC ALJ issued an initial ~~decision.~~decision in the proceeding against System Energy regarding the return on equity component of the Unit Power Sales Agreement. With regard to System Energy’s authorized return on equity, the ALJ determined that the existing return on equity of 10.94% is no longer just and reasonable, and that the replacement authorized return on equity, based on application of the Opinion No. 569-A methodology, should be 9.32%. The ALJ further determined that System Energy should pay refunds for a fifteen-month refund period (January 2017-April 2018) based on the difference between the current return on equity and the replacement authorized return on equity. The ALJ determined that the April 2018 complaint concerning the authorized return on equity should be dismissed, and that no refunds for a second fifteen-month refund period should be due. With regard to System Energy’s capital structure, the ALJ determined that System Energy’s actual equity ratio is excessive and that the just and reasonable equity ratio is 48.15% equity, based on the average equity ratio of the proxy group used to evaluate the return on equity for the second complaint. The ALJ further determined that System Energy should pay refunds for a fifteen-month refund period (September 2018-December 2019) based on the difference between the actual equity ratio and the 48.15% equity ratio. If the ALJ’s initial decision is upheld, the estimated refund for this proceeding is approximately ~~$59~~$61 million, which includes interest through March 31, ~~2021,~~2022, and the estimated resulting annual rate reduction would be approximately ~~$46~~$50 million. The estimated refund will continue to accrue interest until a final FERC decision is issued. Based on the course of the proceeding to date, System Energy has recorded a provision of ~~$36~~$38 million, including interest, as of March 31, ~~2021.~~2022.

The ALJ initial decision is an interim step in the FERC litigation process, and an ALJ’s determinations made in an initial decision are not controlling on the FERC. In April 2021, System Energy filed its brief on

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exceptions, in which it challenged the initial decision’s findings on both the return on equity and capital structure issues. Also in April 2021 the LPSC, APSC, MPSC, City Council, and the FERC trial staff filed briefs on exceptions. Reply briefs opposing exceptions ~~are due~~were filed in May ~~2021.~~2021 by System Energy, the FERC trial staff, the LPSC, APSC, MPSC, and the City Council. Refunds, if any, that might be required will only become due after the FERC issues its order reviewing the initial decision.

Grand Gulf Sale-leaseback Renewal Complaint and Uncertain Tax Position Rate Base Issue

As discussed in the Form 10-K, in May 2018 the LPSC filed a complaint against System Energy and Entergy Services related to System Energy’s renewal of a sale-leaseback transaction originally entered into in December 1988 for an 11.5% undivided interest in Grand Gulf Unit 1. A hearing was held before a FERC ALJ in November 2019. In April 2020 the ALJ issued the initial decision. Among other things, the ALJ determined that refunds were due on three main issues. First, with regard to the lease renewal payments, the ALJ determined that

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System Energy is recovering an unjust acquisition premium through the lease renewal payments, and that System Energy’s recovery from customers through rates should be limited to the cost of service based on the remaining net book value of the leased assets, which is approximately $70 million. The ALJ found that the remedy for this issue should be the refund of lease payments (approximately $17.2 million per year since July 2015) with interest determined at the FERC quarterly interest rate, which would be offset by the addition of the net book value of the leased assets in the cost of service. The ALJ did not calculate a value for the refund expected as a result of this remedy. In addition, System Energy would no longer recover the lease payments in rates prospectively. Second, with regard to the liabilities associated with uncertain tax positions, the ALJ determined that the liabilities are accumulated deferred income taxes and that System Energy’s rate base should have been reduced for those liabilities. If the ALJ’s initial decision is upheld, the estimated refund for this issue through March 31, ~~2021,~~2022, is approximately $422 million, plus interest, which is ~~approximately $115~~approximately $135 million through March 31, ~~2021.~~2022. The ALJ also found that System Energy should include liabilities associated with uncertain tax positions as a rate base reduction going forward. Third, with regard to the depreciation expense adjustments, the ALJ found that System Energy should correct for the error in re-billings retroactively and prospectively, but that System Energy should not be permitted to recover interest on any retroactive return on enhanced rate base resulting from such corrections. If the initial decision is affirmed on this issue, System Energy estimates refunds of approximately $19 million, which includes interest through March 31, ~~2021.~~2022.

The ALJ initial decision is an interim step in the FERC litigation process, and an ALJ’s determinations made in an initial decision are not controlling on the FERC. The ALJ in the initial decision acknowledges that these are issues of first impression before the FERC.The case is pending before the FERC, which will review the case and issue an order on the proceeding, and the FERC may accept, reject, or modify the ALJ’s initial decision in whole or in part.Refunds, if any, that might be required will only become due after the FERC issues its order reviewing the initial decision.

Also as discussed in the Form 10-K, in November 2020 the IRS issued a Revenue Agent’s Report (RAR) for the 2014/2015 tax year and in December 2020 Entergy executed it. The RAR contained an adjustment to System Energy’s uncertain nuclear decommissioning tax position. As a result of the RAR, in December 2020, System Energy filed amendments to its new Federal Power Act section 205 filings to establish an ongoing rate base credit for the accumulated deferred income taxes resulting from the decommissioning uncertain tax position and to credit excess accumulated deferred income taxes arising from the successful portion of the decommissioning uncertain tax position. The amendments both propose the inclusion of the RAR as support for the filings. In December 2020 the LPSC, APSC, and City Council filed a protest in response to the amendments, reiterating their prior objections to the filings. In February 2021 the FERC issued an order accepting System Energy’s Federal Power Act section 205 filings subject to refund, setting them for hearing, and holding the hearing in abeyance.

In December 2020, System Energy filed a new Federal Power Act section 205 filing to provide a one-time, historical credit to customers of $25.2 million for the accumulated deferred income taxes that would have been created by the decommissioning uncertain tax position if the IRS’s decision had been known in 2016. In January 2021 the LPSC, APSC, MPSC, and City Council filed a protest to the filing. In February 2021, the FERC issued an order accepting System Energy’s Federal Power Act section 205 filing subject to refund, setting it for hearing, and holding the hearing in abeyance. The one-time credit was made during the first quarter 2021.

LPSC Authorization of Additional Complaints

As discussed in the Form 10-K, in May 2020 the LPSC authorized its staff to file additional complaints at the FERC related to the rates charged by System Energy for Grand Gulf energy and capacity supplied to Entergy Louisiana under the Unit Power Sales Agreement.

Unit Power Sales Agreement ~~and the~~Complaint

The first of the additional complaints was filed by the LPSC, the APSC, the MPSC and the City Council in September 2020. The ~~second~~first complaint raises two sets of rate allegations: violations of the ~~additional complaints was~~ filed atrate and a corresponding request for refunds for prior periods; and elements of the Unit Power Sales Agreement are unjust and unreasonable and a corresponding request for refunds for the 15-month refund period and changes to the Unit Power Sales Agreement prospectively. In May 2021 the FERC ~~in March 2021 by~~issued an order addressing the ~~LPSC, the APSC,~~complaint, establishing a refund effective date of September 21, 2020, establishing hearing procedures, and the City Council against System Energy, Entergy Services, Entergy Operations, and Entergy Corporation. The second complaint contains two primary allegations. First, it alleges that, based on the plant’s capacity factor and alleged safety performance, System Energy and the otherholding those procedures in

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~~respondents imprudently operated~~abeyance pending the FERC’s review of the initial decision in the Grand Gulf ~~during~~sale-leaseback renewal complaint discussed above. System Energy agreed that the hearing should be held in abeyance but sought rehearing of the FERC’s decision as related to matters set for hearing that were beyond the scope of the FERC’s jurisdiction or authority. The complainants sought rehearing of the FERC’s decision to hold the hearing in abeyance and filed a motion to proceed, which motion System Energy subsequently opposed. In June 2021, System Energy’s request for rehearing was denied by operation of law, and System Energy filed an appeal of the FERC’s orders in the Court of Appeals for the Fifth Circuit. The appeal was initially stayed for a period ~~2016-2020,~~of 90 days, but the stay expired. In November 2021 the Fifth Circuit dismissed the appeal as premature.

In November 2021 the LPSC, APSC, and ~~it seeks~~City Council filed direct testimony and requested the FERC to order refunds ~~of at least $360 million in alleged replacement energy~~for prior periods and prospective amendments to the Unit Power Sales Agreement. The LPSC’s refund claims include, among other things, allegations that: (1) System Energy should not have included certain sale-leaseback transaction costs in ~~addition~~prepayments; (2) System Energy should have credited rate base to ~~other~~reflect the time value of money associated with the advance collection of lease payments; (3) System Energy incorrectly included refueling outage costs ~~including those~~ that ~~can only be identified upon further investigation. Second, it alleges that~~were recorded in account 174 in rate base; and (4) System Energy should have excluded several accumulated deferred income tax balances in account 190 from rate base. The LPSC is also seeking a retroactive adjustment to retained earnings and capital structure in conjunction with the ~~performance and/or management~~implementation of ~~the 2012 extended power uprate of Grand Gulf was imprudent, and it seeks refunds of all costs of the 2012 uprate that are determined to result from imprudent planning or management of the project.~~its proposed refunds. In addition, to the ~~requested refunds, the complaint asks that the FERC modify~~LPSC seeks amendments to the Unit Power Sales Agreement going forward to ~~provide for full cost recovery only if certain performance indicators are met~~address below-the-line costs, incentive compensation, the working capital allowance, litigation expenses, and ~~to require pre-authorization~~the 2019 termination of the capital ~~improvement projects in excess of $125 million before related costs may be passed through to customers in rates. In April 2021,~~funds agreement. The APSC argues that: (1) System Energy should have included borrowings from the Entergy System money pool in its determination of short-term debt in its cost of capital; and ~~the other respondents filed their motion to dismiss and answer to the complaint.~~(2) System Energy ~~requested~~should credit customers with System Energy’s allocation of earnings on money pool investments. The City Council alleges that System Energy has maintained excess cash on hand in the money pool and that retention of excess cash was imprudent. Based on this allegation, the City Council’s witness recommends a refund of approximately $98.8 million for the period 2004-September 2021 or other alternative relief. The City Council further recommends that the FERC ~~dismiss~~impose a hypothetical equity ratio such as 48.15% equity to capital on a prospective basis.

In January 2022, System Energy filed answering testimony arguing that the ~~claims within the complaint. With respect~~FERC should not order refunds for prior periods or any prospective amendments to the ~~claim concerning operations,~~Unit Power Sales Agreement. In response to the LPSC’s refund claims, System Energy argues, among other things, that (1) the inclusion of sale-leaseback transaction costs in prepayments was correct; (2) the filed rate doctrine bars the request for a retroactive credit to rate base for the time value of money associated with the advance collection of lease payments; (3) an accounting misclassification for deferred refueling outage costs has been corrected, caused no harm to customers, and requires no refunds; and (4) its accounting and ratemaking treatment of specified accumulated deferred income tax balances in account 190 has been correct. System Energy further responds that no retroactive adjustment to retained earnings or capital structure should be ordered because there is no general policy requiring such a remedy and there was no showing that the retained earnings element of the capital structure was incorrectly implemented. Further, System Energy presented evidence that all of the costs that are being challenged were long known to the retail regulators and were approved by them for inclusion in retail rates, and the attempt to retroactively challenge these costs, some of which have been included in rates for decades, is unjust and unreasonable. In response to the LPSC’s proposed going-forward adjustments, System Energy presents evidence to show that none of the proposed adjustments are needed. On the issue of below-the-line expenses, during discovery procedures, System Energy identified a historical allocation error in certain months and agreed to provide a bill credit to customers to correct the error. In response to the APSC’s claims, System Energy argues that the ~~complaint~~Unit Power Sales Agreement does not ~~meet its legal burden because, among other reasons, it fails to allege any specific imprudent conduct. With respect~~include System Energy’s borrowings from the Entergy System money pool or earnings on deposits to the ~~claim concerning~~Entergy System money pool in the ~~uprate,~~determination of the cost of capital; and accordingly, no refunds are appropriate on those issues. In response to the City Council’s claims, System Energy argues that it has reasonably managed its cash and that the ~~complaint~~City Council’s theory of cash management is defective because it fails ~~because, among other reasons,~~to adequately consider the ~~complainants’ own conduct prevents them from raising a serious doubt as~~relevant cash needs of System Energy and it makes faulty presumptions about the operation of the Entergy System money pool. System Energy further points out that the issue of its capital structure is already subject to pending FERC litigation.

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In March 2022 the FERC trial staff filed direct and answering testimony in response to the ~~prudence of~~LPSC, APSC, and City Council’s direct testimony. In its testimony, the ~~uprate.~~FERC trial staff recommends refunds for two primary reasons: (1) it concluded that System Energy ~~also requests~~should have excluded specified accumulated deferred income tax balances in account 190 associated with rate refunds; and (2) it concluded that System Energy should have excluded specified accumulated deferred income tax balances in account 190 associated with a deemed contract satisfaction and reissuance that occurred in 2005. The FERC trial staff recommends refunds of $84.1 million, exclusive of any tax gross-up or FERC interest. In addition, the FERC ~~dismiss other elements of~~trial staff recommends the ~~complaint, including the proposed~~following prospective modifications to the Unit Power Sales ~~Agreement, because they~~Agreement: (1) inclusion of a rate base credit to recognize the time value of money associated with the advance collection of lease payments; (2) exclusion of executive incentive compensation costs for members of the Office of the Chief Executive and long-term performance unit costs where awards are ~~not warranted.~~based solely or primarily on financial metrics; and (3) exclusion of unvested, accrued amounts for stock options, performance units, and restricted stock awards. With respect to issues that ultimately concern the reasonableness of System Energy’s rate of return, the FERC trial staff states that it is unnecessary to consider such issues in this proceeding, in light of the pending case concerning System Energy’s return on equity and capital structure. On all other material issues raised by the LPSC, APSC, and City Council, the FERC trial staff recommends either no refunds or no modification to the Unit Power Sales Agreement.

System Energy Formula Rate Annual Protocols Formal Challenge Concerning 2020 Calendar Year Bills

System Energy’s Unit Power Sales Agreement includes formula rate protocols that provide for the disclosure of cost inputs, an opportunity for informal discovery procedures, and a challenge process. In February 2022, pursuant to the protocols procedures, the LPSC, the APSC, the MPSC, the City Council, and the Mississippi Public Utilities Staff filed with the FERC a formal challenge to System Energy’s implementation of the formula rate during calendar year 2020. The formal challenge alleges: (1) that it was imprudent for System Energy to accept the IRS’s partial acceptance of a previously uncertain tax position; (2) that System Energy should have delayed recording the result of the IRS’s partial acceptance of the previously uncertain tax position until after internal tax allocation payments were made; (3) that the equity ratio charged in rates was excessive; (4) that sale-leaseback rental payments should have been excluded from rates; and (5) that all issues in the ongoing Unit Power Sales Agreement Complaint proceeding should also be reflected in calendar year 2020 bills. While System Energy disagrees that any refunds are owed for the 2020 calendar year bills, the formal challenge estimates that the financial impact of the first through fourth allegations is approximately $53 million; it does not provide an estimate of the financial impact of the fifth allegation.

In March 2022, System Energy filed an answer to the formal challenge in which it requested that the FERC deny the formal challenge as a matter of law, or else hold the proceeding in abeyance pending the resolution of related dockets.

Storm Cost Recovery Filings with Retail Regulators

See Note 2 to the financial statements in the Form 10-K for discussion regarding storm cost recovery filings. The following are updates to that discussion.

Entergy Louisiana

Hurricane Laura, Hurricane Delta, Hurricane Zeta, ~~and~~ Winter Storm Uri, and Hurricane Ida

InAs discussed in the Form 10-K, in August 2020 and October 2020, Hurricane Laura, Hurricane Delta, and Hurricane Zeta caused significant damage to portions of Entergy Louisiana’s service area. The storms resulted in widespread outages, significant damage to distribution and transmission infrastructure, and the loss of sales during the outages. Additionally, as a result of Hurricane Laura’s extensive damage to the grid infrastructure serving the impacted area, large portions of the underlying transmission system required nearly a complete rebuild.

In October 2020, Entergy Louisiana filed an application at the LPSC seeking approval of certain ratemaking adjustments to facilitate issuance of shorter-term bonds to provide interim financing for restoration costs associated with Hurricane Laura, Hurricane Delta, and Hurricane Zeta. Subsequently, Entergy Louisiana and the LPSC staff filed a joint motion seeking approval to exclude from the derivation of Entergy Louisiana’s capital structure and cost rate of debt for ratemaking purposes, including the allowance for funds used during construction, shorter-term debt up to $1.1 billion issued by Entergy Louisiana to fund costs associated with Hurricane Laura, Hurricane Delta, and Hurricane Zeta costs on an interim basis. In November 2020 the LPSC issued an order approving the joint motion, and Entergy Louisiana issued $1.1 billion of 0.62% Series mortgage bonds due November 2023. Also in November 2020, Entergy Louisiana drew $257 million from its funded storm reserves.

In February 2021 two winter storms (collectively, Winter Storm Uri) brought freezing rain and ice to Louisiana. Ice

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accumulation sagged or downed trees, limbs and power lines, causing damage to Entergy Louisiana’s transmission and distribution systems. The additional weight of ice caused trees and limbs to fall into power lines and other electric equipment. When the ice melted, it affected vegetation and electrical equipment, causing ~~incremental~~additional outages. ~~As discussed above in “Fuel and purchased power recovery,” Entergy Louisiana is recovering the incremental fuel costs associated with Winter Storm Uri over a five-month period from April 2021 through August 2021.~~

In April 2021, Entergy Louisiana filed an application with the LPSC relating to Hurricane Laura, Hurricane Delta, Hurricane Zeta, and Winter Storm Uri restoration costs and in July 2021, Entergy Louisiana made a supplemental filing updating the total restoration costs. Total restoration costs for the repair and/or replacement of Entergy Louisiana’s electric facilities damaged by ~~the~~these storms ~~are currently~~were estimated to be approximately ~~$2.05~~$2.06 billion, including approximately ~~$1.74~~$1.68 billion in capital costs and approximately ~~$310~~$380 million in non-capital costs. Including carrying costs through January 2022, Entergy Louisiana was seeking an LPSC determination that $2.11 billion was prudently incurred and, therefore, was eligible for recovery from customers. Additionally, Entergy Louisiana was requesting that the LPSC determine that re-establishment of a storm escrow account to the previously authorized amount of $290 million was appropriate. In July 2021, Entergy Louisiana supplemented the application with a request regarding the financing and recovery of the recoverable storm restoration costs. Specifically, Entergy Louisiana requested approval to securitize its restoration costs pursuant to Louisiana Act 55 financing, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021.

In August 2021, Hurricane Ida caused extensive damage to Entergy Louisiana’s distribution and, to a lesser extent, transmission systems resulting in widespread power outages. In September 2021, Entergy Louisiana filed an application at the LPSC seeking approval of certain ratemaking adjustments in connection with the issuance of approximately $1 billion of shorter-term mortgage bonds to provide interim financing for restoration costs associated with Hurricane Ida, which bonds were issued in October 2021. Also in September 2021, Entergy Louisiana sought approval for the creation and funding of a $1 billion restricted escrow account for Hurricane Ida restoration costs, subject to a subsequent prudence review.

After filing of testimony by LPSC staff and intervenors, which generally supported or did not oppose Entergy Louisiana’s requests in regard to Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida, the parties negotiated and executed an uncontested stipulated settlement which was filed with the LPSC in February 2022. The settlement agreement contained the following key terms: $2.1 billion of restoration costs from Hurricane Laura, Hurricane Delta, Hurricane Zeta, and Winter Storm Uri were prudently incurred and were eligible for recovery; carrying costs of $51 million were recoverable; a $290 million cash storm reserve should be re-established; a $1 billion reserve should be established to partially pay for Hurricane Ida restoration costs; and Entergy Louisiana was authorized to finance $3.186 billion utilizing the securitization process authorized by Act 55, as supplemented by Act 293. The LPSC issued an order approving the settlement in March 2022. As a result of the financing order, in first quarter 2022, Entergy Louisiana reclassified $1.339 billion from utility plant to other regulatory assets. The securitization process is expected to be completed in second quarter 2022.

In April 2022, Entergy Louisiana filed an application with the LPSC relating to Hurricane Ida restoration costs. Total restoration costs for the repair and/or replacement of Entergy Louisiana’s electric facilities damaged by Hurricane Ida currently are estimated to be approximately $2.54 billion, including approximately $1.96 billion in capital costs and approximately $586 million in non-capital costs. Including carrying costs through December 2022, Entergy Louisiana is seeking an LPSC determination that ~~$2.10~~$2.60 billion was prudently incurred and, therefore, is eligible for recovery from customers. ~~Additionally,~~As part of this filing, Entergy Louisiana also is seeking an LPSC determination that an additional $32 million in restoration costs associated with the restoration of Entergy Louisiana’s electric facilities damaged by Hurricane Laura, Hurricane Delta, and Hurricane Zeta as well as Winter Storm Uri was prudently incurred. This amount is exclusive of the requested $3 million in carrying costs through December 2022. In total, Entergy Louisiana is requesting an LPSC determination that $2.64 billion was prudently incurred and, therefore, is eligible for recovery from customers. As discussed above, in March 2022 the LPSC approved financing of a $1 billion storm escrow that can be withdrawn to finance costs associated with Hurricane Ida restoration. Entergy Louisiana expects to supplement the April 2022 application with a request that the LPSC ~~determine that re-establishment of a~~authorize Entergy Louisiana to finance the remaining storm ~~escrow~~restoration costs included in the April 2022 application,

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~~account~~currently expected to be through the ~~previously~~securitization process authorized ~~amount of $290 million is appropriate. Entergy~~by Louisiana ~~intends to supplement this application with a request regarding the financing and recovery~~Act 55, as supplemented by Act 293 of the ~~recoverable storm restoration costs.~~

~~Entergy New Orleans~~

~~Hurricane Zeta~~

In October 2020, Hurricane Zeta caused significant damage to Entergy New Orleans’s service area. The storm resulted in widespread power outages, significant damage to distribution and transmission infrastructure, and the lossLouisiana Legislature’s Regular Session of sales during the power outages. Total restoration costs for the repair and/or replacement of Entergy New Orleans’s electric facilities damaged by Hurricane Zeta are currently estimated to be approximately $36 million, including approximately $28 million in capital costs and approximately $8 million in non-capital costs. In March 2021, Entergy New Orleans withdrew $44 million from its funded storm reserves. Entergy New Orleans expects to initiate its storm cost recovery proceeding in May 2021.

Entergy Texas

Hurricane Laura, Hurricane Delta, and Winter Storm Uri

InAs discussed in the Form 10-K, in August 2020 and October 2020, Hurricane Laura and Hurricane Delta caused extensive damage to Entergy Texas’s service area. In February 2021, Winter Storm Uri also caused damage to Entergy Texas’s service area. The storms resulted in widespread power outages, significant damage primarily to distribution and transmission infrastructure, and the loss of sales during the power outages. In ~~April~~July 2021, Entergy Texas filed ~~an application~~ with the PUCT ~~requesting~~an application for a ~~determination that its~~financing order to approve the securitization of certain system restoration costs, associated with Hurricane Laura, Hurricane Delta, and Winter Storm Uri of approximately $250 million, including approximately $200 million in capital costs and approximately $50 million in non-capital costswhich were reasonable and necessary to enable Entergy Texas to restore electric service to its customers and Entergy Texas’s electric utility infrastructure. The filing currently includes only a portion of the Winter Storm Uri costs. Entergy Texas expects to initiate a proceeding later in 2021 to securitize the costs approved by the ~~PUCT.~~PUCT as eligible for securitization in December 2021. In November 2021 the parties filed an unopposed settlement agreement supporting the issuance of a financing order consistent with Entergy Texas’s application and with minor adjustments to certain upfront and ongoing costs to be incurred to facilitate the issuance and serving of system restoration bonds. In January 2022 the PUCT issued a financing order consistent with the unopposed settlement. As a result of the financing order, in first quarter 2022, Entergy Texas reclassified $153 million from utility plant to other regulatory assets.

In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned and consolidated by Entergy Texas, issued $290.85 million of senior secured system restoration bonds (securitization bonds). With the proceeds, Entergy Texas Restoration Funding II purchased from Entergy Texas the transition property, which is the right to recover from customers through a system restoration charge amounts sufficient to service the securitization bonds. Entergy Texas began cost recovery through the system restoration charge effective with the first billing cycle of May 2022 and the system restoration charge is expected to remain in place up to 15 years. See Note 4 to the financial statements herein for a discussion of the April 2022 issuance of the securitization bonds.

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NOTE 3. EQUITY (Entergy Corporation and Entergy Louisiana)

Common Stock

Earnings per Share

The following table presents Entergy’s basic and diluted earnings per share calculations included on the consolidated income statements:

For the Three Months Ended March 31,
2021 2020
(In Millions, Except Per Share Data)
Income Shares $/share Income Shares $/share
Basic earnings per share
Net income attributable to Entergy Corporation $334.6 200.5 $1.67 $118.7 199.8 $0.59
Average dilutive effect of:
Stock options 0.4 (0.01) 0.7 0
Other equity plans 0.2 0 0.4 0
Diluted earnings per share $334.6 201.1 $1.66 $118.7 200.9 $0.59


	For the Three Months Ended March 31,
	2022			2021
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings per share
Net income attributable to Entergy Corporation	$276.4	202.9	$1.36	$334.6	200.5	$1.67
Average dilutive effect of:
Stock options		0.5	—		0.4	(0.01)
Other equity plans		0.4	—		0.2	—
Equity forwards		0.1	—		—	—
Diluted earnings per share	$276.4	203.9	$1.36	$334.6	201.1	$1.66

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The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately ~~1.0~~0.9 million for the three months ended March 31, ~~2021~~2022 and approximately ~~0.5~~1 million for the three months ended March 31, ~~2020.~~2021.

Entergy’s stock options and other equity compensation plans are discussed in Note 5 to the financial statements herein and in Note 12 to the financial statements in the Form 10-K.

Dividends declared per common share were $1.01 for the three months ended March 31, 2022 and $0.95 for the three months ended March 31, 2021.

Equity Distribution Program

In January 2021, Entergy entered into an equity distribution sales agreement with several counterparties establishing an at the market equity distribution program, pursuant to which Entergy may offer and ~~$0.93~~sell from time to time shares of its common stock. The sales agreement provides that, in addition to the issuance and sale of shares of Entergy common stock, Entergy may enter into forward sale agreements for the sale of its common stock. The aggregate number of shares of common stock sold under this sales agreement and under any forward sale agreement may not exceed an aggregate gross sales price of $1 billion, of which an aggregate gross sales price of approximately $633 million has been sold through March 31, 2022. See Note 7 to the financial statements in the Form 10-K for discussion of the common stock issued and unsettled forward sale agreements entered into during 2021. For the three months ended March 31, ~~2020.~~2022, there were no shares of common stock issued under the at the market equity distribution program.

In March 2022, Entergy entered into a forward sale agreement for 1,538,010 shares of common stock. No amounts have or will be recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the equity forward sale agreement occur. The forward sale agreement requires Entergy to, at its election prior to September 29, 2023, either (i) physically settle the transactions by issuing the total of 1,538,010 shares of its common stock to the forward counterparty in exchange for net proceeds at the then-applicable forward sale price specified by the agreement (initially approximately $108.14 per share) or (ii) net settle the transaction in whole or in part through the delivery or receipt of cash or shares. The forward sale price is subject to adjustment on a daily basis based on a floating interest rate factor and will decrease by other fixed amounts specified in the agreement. In connection with the forward sale agreement, the forward seller, or its affiliates, borrowed from third parties and sold 1,538,010 shares of Entergy Corporation’s common stock. The gross sales price of these shares totaled approximately $168 million. In connection with the sale of these shares, Entergy paid the forward sellers fees of approximately $1.7 million, which have not been deducted from the gross sales price. Entergy did not receive any proceeds from such sales of borrowed shares.

Until settlement of the forward sale agreement, earnings per share dilution resulting from the agreement, if any, will be determined under the treasury stock method. Share dilution occurs when the average market price of Entergy’s common stock is higher than the average forward sales price. For the three months ended March 31, 2022, 1,775,251 shares under the forward sale agreements were not included in the calculation of diluted earnings per share because their effect would have been antidilutive.

Treasury Stock

During the three months ended March 31, ~~2021,~~2022, Entergy Corporation issued ~~388,330~~503,538 shares of its previously repurchased common stock to satisfy stock option exercises, vesting of shares of restricted stock, and other stock-based awards. Entergy Corporation did not repurchase any of its common stock during the three months ended March 31, ~~2021.~~

~~Retained Earnings~~

~~On April 12, 2021, Entergy Corporation’s Board of Directors declared a common stock dividend of $0.95 per share, payable on June 1, 2021, to holders of record as of May 6, 2021.~~2022.

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

Retained Earnings

On April 11, 2022, Entergy Corporation’s Board of Directors declared a common stock dividend of $1.01 per share, payable on June 1, 2022 to holders of record as of May 5, 2022.

Comprehensive Income

Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana. The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended March 31, 2022 by component:


	Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
	(In Thousands)
Beginning balance, January 1, 2022	($1,035)	($338,647)	$7,154	($332,528)

Other comprehensive income (loss) before reclassifications	(14)	—	(15,875)	(15,889)
Amounts reclassified from accumulated other comprehensive income (loss)	38	8,328	3,473	11,839
Net other comprehensive income (loss) for the period	24	8,328	(12,402)	(4,050)

Ending balance, March 31, 2022	($1,011)	($330,319)	($5,248)	($336,578)

~~Accumulated other comprehensive income (loss) is included in the equity section of the balance sheets of Entergy and Entergy Louisiana.~~ The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended March 31, 2021 by component:

Cash flow
hedges
net
unrealized
gain (loss) Pension
and
other
postretirement
liabilities Net
unrealized
investment
gain (loss) Total
Accumulated
Other
Comprehensive
Income (Loss)
(In Thousands)
Beginning balance, January 1, 2021 $28,719 ($534,576) $56,650 ($449,207)
Other comprehensive income (loss) before reclassifications 1,482 0 (45,301) (43,819)
Amounts reclassified from accumulated other comprehensive income (loss) (31,062) 22,967 614 (7,481)
Net other comprehensive income (loss) for the period (29,580) 22,967 (44,687) (51,300)
Ending balance, March 31, 2021 ($861) ($511,609) $11,963 ($500,507)

~~The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended March 31, 2020 by component:~~


		Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)		Total Accumulated Other Comprehensive Income (Loss)		Cash flow hedges net unrealized gain (loss)	Pension and other postretirement liabilities	Net unrealized investment gain (loss)	Total Accumulated Other Comprehensive Income (Loss)
		(In Thousands)			(In Thousands)

Beginning balance, January 1, 2020		$84,206	($557,072)	$25,946		($446,920)
Beginning balance, January 1, 2021							Beginning balance, January 1, 2021	$28,719	($534,576)	$56,650	($449,207)

Other comprehensive income (loss) before reclassifications	Other comprehensive income (loss) before reclassifications	52,846	34,349	17,713		104,908	Other comprehensive income (loss) before reclassifications	1,482	—	(45,301)	(43,819)
Amounts reclassified from accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)	(74,556)	19,550	(1,969)		(56,975)	Amounts reclassified from accumulated other comprehensive income (loss)	(31,062)	22,967	614	(7,481)
Net other comprehensive income (loss) for the period	Net other comprehensive income (loss) for the period	(21,710)	53,899	15,744		47,933	Net other comprehensive income (loss) for the period	(29,580)	22,967	(44,687)	(51,300)

Ending balance, March 31, 2020		$62,496	($503,173)	$41,690		($398,987)
Ending balance, March 31, 2021							Ending balance, March 31, 2021	($861)	($511,609)	$11,963	($500,507)

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended March 31, ~~2021~~2022 and ~~2020:~~2021:


		Pension and Other Postretirement Liabilities			Pension and Other Postretirement Liabilities
		2021	2020		2022	2021
		(In Thousands)			(In Thousands)
Beginning balance, January 1,	Beginning balance, January 1,	$4,327	$4,562	Beginning balance, January 1,	$8,278	$4,327

Other comprehensive income (loss) before reclassifications		0	10,050

Amounts reclassified from accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)	(407)	(583)	Amounts reclassified from accumulated other comprehensive income (loss)	(613)	(407)
Net other comprehensive income (loss) for the period	Net other comprehensive income (loss) for the period	(407)	9,467	Net other comprehensive income (loss) for the period	(613)	(407)

Ending balance, March 31,	Ending balance, March 31,	$3,920	$14,029	Ending balance, March 31,	$7,665	$3,920

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Management's Financial Discussion and Analysis

~~Billed~~Total electric energy sales for Entergy Louisiana for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 are as follows:


		2021	2020	% Change		2022	2021	% Change
		(GWh)				(GWh)
Residential	Residential	3,500	2,975	18	Residential	3,069	3,197	(4)
Commercial	Commercial	2,409	2,459	(2)	Commercial	2,421	2,395	1
Industrial	Industrial	7,010	7,450	(6)	Industrial	7,606	7,208	6
Governmental	Governmental	197	199	(1)	Governmental	191	196	(3)
Total retail	Total retail	13,116	13,083	—	Total retail	13,287	12,996	2
Sales for resale:	Sales for resale:				Sales for resale:
Associated companies	Associated companies	959	1,341	(28)	Associated companies	1,341	959	40
Non-associated companies	Non-associated companies	386	457	(16)	Non-associated companies	853	386	121
Total	Total	14,461	14,881	(3)	Total	15,481	14,341	8

See Note 13 to the financial statements herein for additional discussion of Entergy Louisiana’s operating revenues.

Other Income Statement Variances

Other operation and maintenance expenses increased primarily due to:

•an increase of ~~$8.9~~$7.3 million in distribution operations expenses primarily due to higher reliability costs, higher safety and training costs, and higher vegetation maintenance costs, partially offset by a decrease in meter reading expenses as a result of the deployment of advanced metering systems;

•an increase of $2.6 million in nuclear generation expenses primarily due to a higher scope of work performed in 2022 as compared to prior year, partially offset by lower spending in 2022 on sanitation and social distancing protocols as a result of the COVID-19 pandemic;

•~~a decrease~~an increase of ~~$4.2~~$2.3 million in ~~nuclear insurance refunds;~~transmission expenses, including an increase in vegetation maintenance costs; and

•an increase of ~~$1.5~~$2.3 million in customer service center support costs primarily due to higher contract costs.

The increase was partially offset by higher nuclear insurance refunds of $2.6 million and a decrease of $2.6 million in non-nuclear generation expenses primarily due to ~~higher expenses associated with the Lake Charles Power Station, which began commercial operation in March 2020, partially offset by~~ a lower scope of work performed ~~during plant outages~~ in ~~2021~~2022 as compared to the ~~prior year.~~same period in 2021.

Taxes other than income taxes increased primarily due to increases in ad valorem taxes resulting from higher assessments and increases in franchise taxes.

Depreciation and amortization expenses increased primarily due to additions to plant in ~~service, including the Lake Charles Power Station, which was placed in service in March 2020.~~

Other regulatory charges (credits) - net include regulatory charges of $29 million recorded in first quarter 2020 due to a settlement with the IRS related to the uncertain tax position regarding Hurricane Isaac Louisiana Act 55 financing because the savings will be shared with customers. See Note 3 in the Form 10-K for further discussion of the settlement and savings obligation.service.

Other income decreased primarily due to a decrease in the allowance for equity funds used during construction due to higher construction work in progress in 2020, including the Lake Charles Power Station project. The decrease was substantially offset by changes in decommissioning trust fund ~~activity.~~activity, including portfolio rebalancing of the Waterford 3 and River Bend decommissioning trust funds in the first quarter of 2021.

Interest expense increased primarily due to:

•the ~~issuance of $350 million of 2.90% Series mortgage bonds in March 2020;~~

•~~the issuance of $1.1 billion of 0.62% Series mortgage bonds, $300 million of 2.90% Series mortgage bonds, and $300 million of 1.60% Series mortgage bonds, each in November 2020;~~

•~~the issuance~~issuances of $500 million of 2.35% Series mortgage bonds and $500 million of 3.10% Series mortgage bonds, each in March 2021;

•the $1.2 billion unsecured term loan proceeds received in January 2022; and

•~~a decrease~~the issuance of $1 billion of 0.95% Series mortgage bonds in ~~the allowance for borrowed funds used during construction due to higher construction work in progress in 2020, including the Lake Charles Power Station project.~~October 2021.

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

The increase was partially offset by the repayment of $200 million of ~~5.25%~~4.8% Series mortgage bonds ~~and $100 million of 4.70% Series mortgage bonds, each~~ in ~~December 2020.~~May 2021.

Income Taxes

The effective income tax ~~rate was~~rates were 16.9% for the first quarter 2022 and 18.5% for the first quarter 2021. The ~~difference~~differences in the effective income tax ~~rate~~rates for the first quarter 2022 and the first quarter 2021 versus the federal statutory rate of 21% ~~was~~were primarily due to book and tax differences related to the non-taxable income distributions earned on preferred membership interests, certain book and tax differences related to utility plant items, and the amortization of excess accumulated deferred income taxes, partially offset by state income taxes. See Note 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.

The effective income tax rate was (36.0%) for the first quarter 2020. The difference in the effective income tax rate for the first quarter 2020 versus the federal statutory rate of 21% was primarily due to the settlement with the IRS on the treatment of funds received in conjunction with the Louisiana Act 55 financing of Hurricane Isaac storm costs, permanent differences related to income tax deductions for stock-based compensation, book and tax differences related to the non-taxable income distributions earned on preferred membership interests, certain book and tax differences related to utility plant items, book and tax differences related to the allowance for equity funds used during construction, and the amortization of excess accumulated deferred income taxes, partially offset by state income taxes. See Note 3 in the Form 10-K for discussion of the IRS settlement and the income tax deductions for stock-based compensation. See Note 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.

Liquidity and Capital Resources

Cash Flow

Cash flows for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 were as follows:

2021 2020
(In Thousands)
Cash and cash equivalents at beginning of period $728,020 $2,006
Cash flow provided by (used in):
    Operating activities (54,598) 313,799
    Investing activities (1,098,466) (373,239)
    Financing activities 1,026,860 522,828
Net increase (decrease) in cash and cash equivalents (126,204) 463,388
Cash and cash equivalents at end of period $601,816 $465,394

~~Table of Contents~~

~~Entergy Louisiana, LLC and Subsidiaries~~

~~Management's~~ ~~Financial Discussion and Analysis~~


	2022	2021
	(In Thousands)
Cash and cash equivalents at beginning of period	$18,573	$728,020

Net cash provided by (used in):
Operating activities	183,126	(54,598)
Investing activities	(1,032,121)	(1,098,466)
Financing activities	987,069	1,026,860
Net increase (decrease) in cash and cash equivalents	138,074	(126,204)

Cash and cash equivalents at end of period	$156,647	$601,816

Operating Activities

Entergy Louisiana’s operating activities ~~used~~provided $183.1 million of cash for the three months ended March 31, 2022 compared to using $54.6 million of cash for the three months ended March 31, 2021 ~~compared to providing $313.8 million of cash for the three months ended March 31, 2020~~ primarily due ~~to:~~to the following activity:

•~~an increase of approximately $170 million in storm spending in 2021, primarily due to Hurricane Laura, Hurricane Delta, and Hurricane Zeta restoration efforts. See “Hurricane Laura, Hurricane Delta, and Hurricane Zeta” above for discussion of storm restoration efforts;~~higher collections from customers;

•~~increased fuel costs as a result~~timing of ~~Winter Storm Uri. See “Winter Storm Uri” above for discussion of the incremental fuel and purchased power costs incurred. See Note 2 to the financial statements herein and in the Form 10-K for a discussion~~recovery of fuel and purchased power ~~cost recovery;~~costs;

•~~an increase~~a decrease of ~~$24~~$20 million in spending on nuclear refueling outages;

•~~income tax refunds of $20.7 million in 2020. Entergy Louisiana had income tax refunds in 2020 as a result of a refund of an overpayment on a prior year state income tax return;~~ and

•~~an increase~~a decrease of ~~$20.5~~$18.9 million in pension contributions in ~~2021.~~2022. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K and Note 6 to the financial statements herein for a discussion of qualified pension and other postretirement benefits funding.

The above activity was partially offset by an increase of approximately $139 million in storm spending in 2022, primarily due to Hurricane Ida restoration efforts. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Hurricane Ida” in the Form 10-K for discussion of storm restoration efforts.

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Investing Activities

Net cash flow used in investing activities ~~increased $725.2~~decreased $66.3 million for the three months ended March 31, ~~2021~~2022 compared to the three months ended March 31, ~~2020~~2021 primarily due to:

•~~an increase~~a decrease of ~~437.9 million in distribution construction expenditures primarily due to storm spending in 2021. See “Hurricane Laura, Hurricane Delta, and Hurricane Zeta” above for discussion of storm restoration efforts;~~

•~~an increase of $162.6~~$60.9 million in transmission construction expenditures primarily due to ~~storm spending in 2021. See “Hurricane Laura, Hurricane Delta, and Hurricane Zeta” above~~higher capital expenditures for ~~discussion of~~ storm restoration ~~efforts;~~in 2021;

•~~an increase~~a decrease of ~~$68.3~~$24.9 million in nuclear decommissioning trust fund activity as a result of a lump sum contribution in 2021 for amounts collected over a 17-month period. See Note 2 in the Form 10-K for a discussion of nuclear decommissioning expense recovery; and

•a decrease of $23.2 million as a result of fluctuations in nuclear fuel activity, primarily due to variations from year to year in the timing and pricing of fuel reload requirements, materials and services deliveries, and the timing of cash payments during the nuclear fuel ~~cycle;~~

•~~$39.5 million in net receipts from storm reserve escrow accounts in the first quarter 2020; and~~

•~~an increase of $19.7 million in nuclear construction expenditures primarily due to increased spending on various projects in 2021.~~cycle.

The ~~increase~~decrease was partially offset by:

•~~a decrease~~an increase of ~~$19.7~~$35.1 million in ~~non-nuclear generation~~distribution construction expenditures primarily due to ahigher capital expenditures for storm restoration in 2022, partially offset by lower ~~scope~~spending in 2022 on advanced metering infrastructure;

•an increase of ~~work performed~~$11.1 million in ~~2021 as compared~~information technology capital expenditures primarily due to ~~2020;~~increased spending on various technology projects in 2022; and

•~~money pool activity.~~an increase of $9 million in nuclear construction expenditures primarily due to higher capital expenditures for storm restoration in 2022.

Increases in Entergy Louisiana’s receivable from the money pool are a use of cash flow, and Entergy Louisiana’s receivable from the money pool increased by $62.3 million for the three months ended March 31, 2021 compared to increasing by $84.5 million for the three months ended March 31, 2020. The money pool is an inter-company borrowing arrangement designed to reduce the Utility subsidiaries’ need for external short-term borrowings.

~~Table of Contents~~

~~Entergy Louisiana, LLC and Subsidiaries~~

~~Management's Financial Discussion and Analysis~~

Financing Activities

Net cash flow provided by financing activities ~~increased $504~~decreased $39.8 million for the three months ended March 31, ~~2021~~2022 compared to the three months ended March 31, ~~2020~~2021 primarily due to:

•the issuance of $500 million of 2.35% Series mortgage bonds and $500 million of 3.10% Series mortgage bonds, each in March ~~2021, as compared to the issuances of $350 million of 2.90% Series mortgage bonds and $300 million of 4.20% Series mortgage bonds, each in March 2020;~~2021;

•net repayments of long-term borrowings of $30.6 million in 2022 compared to net long-term borrowings of $85.5 million in 2021 ~~compared to net repayments of long-term borrowings of $28.5 million in 2020~~ on the nuclear fuel company variable interest entities’ credit facilities;

•~~money pool activity;~~ and

•~~the payment of $11.5~~$125 million in common equity distributions in ~~March 2020 primarily~~2022 to ~~maintain~~return to Entergy ~~Louisiana’s~~Corporation the $125 million capital ~~structure.~~contribution received in December 2021 to assist in paying for costs associated with Hurricane Ida.

The decrease was partially offset by the $1.2 billion of proceeds received from an unsecured term loan in January 2022 and the repayment of Entergy Louisiana Waterford VIE’s $40 million of 3.92% Series H secured notes in February 2021.

Decreases in Entergy Louisiana’s payable to the money pool are a use of cash flow, and Entergy Louisiana’s payable to the money pool decreased by $82.8 million for the three months ended March 31, 2020.

See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Capital Structure

Entergy Louisiana’s debt to capital ratio is shown in the following table. The increase in the debt to capital ratio for Entergy Louisiana is primarily due to the ~~issuance of $1~~$1.2 billion ~~of mortgage bonds~~unsecured term loan proceeds received in ~~March 2021.~~January 2022.

March 31, 2021 December 31, 2020
Debt to capital 56.9 % 54.8 %
Effect of excluding securitization bonds 0.0 % 0.0 %
Debt to capital, excluding securitization bonds (a) 56.9 % 54.8 %
Effect of subtracting cash (1.5 %) (2.1 %)
Net debt to net capital, excluding securitization bonds (a) 55.4 % 52.7 %

~~(a)Calculation excludes the securitization bonds, which are non-recourse to Entergy Louisiana.~~


	March 31, 2022		December 31, 2021
Debt to capital	59.5	%	57.2	%


Effect of subtracting cash	(0.3	%)	0.0	%
Net debt to net capital	59.2	%	57.2	%

Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and common equity. Net capital consists of capital less cash and cash equivalents. Entergy Louisiana uses the debt to capital ~~ratios excluding securitization bonds~~ratio in analyzing its financial condition and believes ~~they provide~~it provides useful information to its investors and creditors in evaluating Entergy Louisiana’s financial ~~condition because the securitization bonds are non-recourse to Entergy Louisiana, as more fully described in Note 5 to the financial statements in the Form 10-K.~~condition. Entergy Louisiana also uses the net debt to net capital ratio ~~excluding securitization bonds~~ in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Louisiana’s financial condition because net debt indicates Entergy Louisiana’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

~~Table of Contents~~

~~Entergy Louisiana, LLC and Subsidiaries~~

~~Management's~~ ~~Financial Discussion and Analysis~~

Uses and Sources of Capital

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Louisiana’s uses and sources of capital. Following are updates to the information provided in the Form 10-K.

Entergy Louisiana’s receivables from or (payables to) the money pool were as follows:

March 31, 2021 December 31, 2020 March 31, 2020 December 31, 2019
(In Thousands)
$75,772 $13,426 $84,466 ($82,826)


March 31, 2022	December 31, 2021	March 31, 2021	December 31, 2020
(In Thousands)
$81,160	$14,539	$75,772	$13,426

See Note 4 to the financial statements in the Form 10-K for a description of the money pool.

Entergy Louisiana has a credit facility in the amount of $350 million scheduled to expire in ~~September 2024.~~June 2026. The credit facility includes fronting commitments for the issuance of letters of credit against $15 million of the borrowing capacity of the facility. As of March 31, ~~2021,~~2022, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy Louisiana is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of March 31, ~~2021, $12.8~~2022, $11 million in letters of credit were outstanding under Entergy Louisiana’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

The Entergy Louisiana nuclear fuel company variable interest entities have two separate credit facilities, each in the amount of $105 million and scheduled to expire in ~~September 2022.~~June 2024. As of March 31, ~~2021, $70.5~~2022, $30.8 million in loans were outstanding under the credit facility for the Entergy Louisiana River Bend nuclear fuel company variable interest entity. As of March 31, ~~2021, $73.2~~2022, $82.1 million in loans were outstanding under the credit facility for the Entergy Louisiana Waterford nuclear fuel company variable interest entity. See Note 4 to the financial statements herein for additional discussion of the nuclear fuel company variable interest entity credit facilities.

~~State~~See the table and ~~Local Rate Regulation and Fuel-Cost Recovery~~

~~See~~discussion in the Form 10-K under “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS –- ~~State~~Liquidity and ~~Local Rate Regulation and Fuel Cost Recovery~~”Capital Resources in- Uses of Capital,” that sets forth the ~~Form 10-K for a discussion~~amounts of ~~state and local rate regulation and fuel cost recovery. The following are updates to that discussion.~~planned

~~Retail Rates - Electric~~

~~2017 Formula Rate Plan Filing~~

As discussed in the Form 10-K, in May 2019, Entergy Louisiana filed an update to its 2017 formula rate plan evaluation report to include the estimated first-year revenue requirement of $109.5 million associated with the J. Wayne Leonard Power Station (formerly St. Charles Power Station). In February 2021, LPSC staff filed testimony that substantially all the costs to construct J. Wayne Leonard Power Station were prudently incurred and eligible for recovery from customers. ~~LPSC s~~taff further recommended that the LPSC consider monitoring the remaining $3.1 million that was estimated to be incurred for completion of the project in the event the final costs exceed the estimated amounts. Settlement discussions are in progress.

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Management's Financial Discussion and Analysis

~~Request~~construction and other capital investments for ~~Extension~~2022 through 2024. While Entergy Louisiana is still assessing the effect on its planned solar projects, a recently commenced investigation by the U.S. Department of Commerce into potential circumvention of duties and ~~Modification~~tariffs may result in increased duties or tariffs on imported solar panels and has created supply chain disruptions which will affect the ultimate timing and could increase the cost of ~~Formula Rate Plan~~completion of these projects.

2021 Solar Certification and the Geaux Green Option

As discussed in the Form 10-K, in ~~May 2020,~~November 2021, Entergy Louisiana filed an application with the LPSC ~~its application~~seeking certification of and approval for ~~authority~~the addition of four new solar photovoltaic resources with a combined nameplate capacity of 475 megawatts (the 2021 Solar Portfolio) and the implementation of a new green tariff, the Geaux Green Option (Rider GGO). The LPSC has established a procedural schedule that is expected to ~~extend its formula rate plan. The parties reached a settlement~~result in ~~April 2021 regarding Entergy Louisiana’s proposed FRP extension. Entergy~~an LPSC decision by the end of 2022. In March 2022 direct testimony from Walmart, the Louisiana Energy Users Group (LEUG) and the LPSC staff ~~filed a joint motion asking~~was filed. Each party recommended that the LPSC ~~to consider and~~ approve the ~~uncontested settlement at~~resources proposed in Entergy Louisiana’s application, and the ~~May 2021~~ LPSC ~~meeting. Key terms of~~staff witness indicated that the ~~settlement include: a three year term (test years 2020, 2021,~~process through which Entergy Louisiana solicited or obtained the proposals for the resources complies with applicable LPSC orders. LPSC staff and ~~2022) covering a rate-effective period of September 2021 through August 2024; a 9.50% return on equity, with a smaller, 50 basis point deadband above~~LEUG’s witnesses made recommendations to modify the proposed Rider GGO and ~~below (9.0%-10.0%); elimination of sharing if earnings are outside~~Entergy Louisiana’s proposed rate relief. In April 2022, LPSC staff and LEUG filed cross-answering testimony concerning the ~~deadband; a $63 million~~other party’s proposed modifications to Rider GGO and the proposed rate increase for test year 2020 (exclusive of riders); continuation of existing riders (transmission, additional capacity, etc.); addition of a distribution recovery mechanism permitting $225 million per year of distribution investment above a baseline level to be recovered dollar for dollar; modification of the tax mechanism to allow timely rate changes in the event the federal corporate income tax raterecovery. Discovery concerning these parties’ testimonies is changed from 21%; a cumulative rate increase limit of $70 million (exclusive of riders) for test years 2021 and 2022; and deferral of up to $7 million per year in 2021 and 2022 of expenditures on vegetation management for outside of right of way hazard trees.ongoing.

Hurricane Laura, Hurricane Delta, Hurricane Zeta, ~~and~~ Winter Storm Uri, and Hurricane Ida

In February 2021 two winter storms (collectively, Winter Storm Uri) brought freezing rain and ice to Louisiana. Ice accumulation sagged or downed trees, limbs and power lines, causing damage to Entergy Louisiana’s transmission and distribution systems. The additional weight of ice caused trees and limbs to fall into power lines and other electric equipment. When the ice melted, it affected vegetation and electrical equipment, causing ~~incremental~~additional outages. ~~As discussed above in “Fuel and purchased power recovery,” Entergy Louisiana is recovering the incremental fuel costs associated with Winter Storm Uri over a five-month period from April 2021 through August 2021.~~

In April 2021, Entergy Louisiana filed an application with the LPSC relating to Hurricane Laura, Hurricane Delta, Hurricane Zeta, and Winter Storm Uri restoration costs and in July 2021, Entergy Louisiana made a supplemental filing updating the total restoration costs. Total restoration costs for the repair and/or replacement of Entergy Louisiana’s electric facilities damaged by ~~the~~these storms ~~are currently~~were estimated to be approximately ~~$2.05~~$2.06 billion, including approximately ~~$1.74~~$1.68 billion in capital costs and approximately ~~$310~~$380 million in non-capital costs. Including carrying costs through January 2022, Entergy Louisiana iswas seeking an LPSC determination that ~~$2.10~~$2.11 billion was prudently incurred and, therefore, iswas eligible for recovery from customers. Additionally, Entergy Louisiana iswas requesting that the LPSC determine that re-establishment of a storm escrow account to the previously authorized amount of $290 million iswas appropriate. In July 2021, Entergy Louisiana ~~intends to supplement this~~supplemented the application with a request regarding the financing and recovery of the recoverable storm restoration costs. Specifically, Entergy Louisiana requested approval to securitize its restoration costs pursuant to Louisiana Act 55 financing, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021.

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

In August 2021, Hurricane Ida caused extensive damage to Entergy Louisiana’s distribution and, to a lesser extent, transmission systems resulting in widespread power outages.

In September 2021, Entergy Louisiana filed an application at the LPSC seeking approval of certain ratemaking adjustments in connection with the issuance of approximately $1 billion of shorter-term mortgage bonds to provide interim financing for restoration costs associated with Hurricane Ida, which bonds were issued in October 2021. Also in September 2021, Entergy Louisiana sought approval for the creation and funding of a $1 billion restricted escrow account for Hurricane Ida restoration costs, subject to a subsequent prudence review.

~~Fuel~~After filing of testimony by LPSC staff and ~~purchased power recovery~~

Inintervenors, which generally supported or did not oppose Entergy Louisiana’s requests in regard to Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida, the parties negotiated and executed an uncontested stipulated settlement which was filed with the LPSC in February ~~2021,~~2022. The settlement agreement contained the following key terms: $2.1 billion of restoration costs from Hurricane Laura, Hurricane Delta, Hurricane Zeta, and Winter Storm Uri were prudently incurred and were eligible for recovery; carrying costs of $51 million were recoverable; a $290 million cash storm reserve should be re-established; a $1 billion reserve should be established to partially pay for Hurricane Ida restoration costs; and Entergy Louisiana ~~incurred extraordinary fuel costs associated with~~was authorized to finance $3.186 billion utilizing the ~~February 2021 winter storms.To mitigate~~securitization process authorized by Act 55, as supplemented by Act 293. The LPSC issued an order approving the ~~effect of these costs on customer bills,~~settlement in March ~~2021~~2022. As a result of the financing order, in first quarter 2022, Entergy Louisiana ~~requested and the LPSC approved the deferral and recovery of $166 million~~reclassified $1.339 billion from utility plant to other regulatory assets. The securitization process is expected to be completed in incremental fuel costs over five months beginning in April 2021. The incremental fuel costs remain subject to review for reasonableness and eligibility for recovery through the fuel adjustment clause mechanism. At its April 2021 meeting, the LPSC authorized its staff to review the prudence of February 2021 fuel costs incurred by all LPSC jurisdictional utilities.second quarter 2022.

In ~~March 2021~~April 2022, Entergy Louisiana filed an application with the LPSC ~~staff provided notice of an audit~~relating to Hurricane Ida restoration costs. Total restoration costs for the repair and/or replacement of Entergy Louisiana’s ~~purchased gas adjustment clause filings covering the period January 2018~~electric facilities damaged by Hurricane Ida currently are estimated to be approximately $2.54 billion, including approximately $1.96 billion in capital costs and approximately $586 million in non-capital costs. Including carrying costs through December ~~2020.~~2022, Entergy Louisiana is seeking an LPSC determination that $2.60 billion was prudently incurred and, therefore, is eligible for recovery from customers. As part of this filing, Entergy Louisiana also is seeking an LPSC determination that an additional $32 million in restoration costs associated with the restoration of Entergy Louisiana’s electric facilities damaged by Hurricane Laura, Hurricane Delta, and Hurricane Zeta as well as Winter Storm Uri was prudently incurred. This amount is exclusive of the requested $3 million in carrying costs through December 2022. In total, Entergy Louisiana is requesting an LPSC determination that $2.64 billion was prudently incurred and, therefore, is eligible for recovery from customers. As discussed above, in March 2022 the LPSC approved financing of a $1 billion storm escrow that can be withdrawn to finance costs associated with Hurricane Ida restoration. Entergy Louisiana expects to supplement the April 2022 application with a request that the LPSC authorize Entergy Louisiana to finance the remaining storm restoration costs included in the April 2022 application, currently expected to be through the securitization process authorized by Louisiana Act 55, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021.

State and Local Rate Regulation and Fuel-Cost Recovery

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – ~~The audit includes a review of the reasonableness of charges flowed through Entergy Louisiana’s purchased gas adjustment clause for that period.~~State and Local Rate Regulation and Fuel Cost Recovery” ~~No audit report has been filed.~~in the Form 10-K for a discussion of state and local rate regulation and fuel cost recovery. The following are updates to that discussion.

COVID-19 Orders

As discussed in the Form 10-K, in April 2020 the LPSC issued an order authorizing utilities to record as a regulatory asset expenses incurred from the suspension of disconnections and collection of late fees imposed by LPSC orders associated with the COVID-19 pandemic. In addition, utilities may seek future recovery, subject to LPSC review and approval, of losses and expenses incurred due to compliance with the LPSC’s COVID-19 orders. ~~The suspension of late fees and disconnects for non-payment was extended until the first billing cycle after July 16, 2020.In January 2021, Entergy Louisiana resumed disconnections for customers in all customer classes with past-due balances that have not made payment arrangements.~~ Utilities seeking to recover the regulatory asset must formally petition the LPSC to do so, identifying the direct and indirect costs for which recovery is sought. Any such request is subject to LPSC review and approval. As of

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

March 31, ~~2021,~~2022, Entergy Louisiana ~~recorded~~had a regulatory asset of $47.8 million for costs associated with the COVID-19 pandemic.

Industrial and Commercial Customers

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Industrial and Commercial Customers” in the Form 10-K for a discussion of industrial and commercial customers.

Federal Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K for a discussion of federal regulation.

Nuclear Matters

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.

Environmental Risks

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Environmental Risks” in the Form 10-K for a discussion of environmental risks.

~~Table of Contents~~

~~Entergy Louisiana, LLC and Subsidiaries~~

~~Management's Financial Discussion and Analysis~~

Critical Accounting Estimates

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy Louisiana’s accounting for nuclear decommissioning costs, utility regulatory accounting, impairment of long-lived assets, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.

New Accounting Pronouncements

See “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three Months Ended March 31, 2022 and 2021
(Unaudited)




	2022	2021
	(In Thousands)
OPERATING REVENUES
Electric	$1,237,237	$1,079,663
Natural gas	28,735	27,981
TOTAL	1,265,972	1,107,644

OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	362,074	145,234
Purchased power	176,197	209,961
Nuclear refueling outage expenses	11,947	13,282
Other operation and maintenance	254,001	237,483
Decommissioning	17,688	16,823
Taxes other than income taxes	61,615	52,484
Depreciation and amortization	169,083	160,813
Other regulatory charges (credits) - net	(20,897)	31,097
TOTAL	1,031,708	867,177

OPERATING INCOME	234,264	240,467

OTHER INCOME
Allowance for equity funds used during construction	6,726	6,101
Interest and investment income	15,900	72,515
Miscellaneous - net	15,517	(34,638)
TOTAL	38,143	43,978

INTEREST EXPENSE
Interest expense	93,784	82,806
Allowance for borrowed funds used during construction	(3,026)	(2,759)
TOTAL	90,758	80,047

INCOME BEFORE INCOME TAXES	181,649	204,398

Income taxes	30,789	37,772

NET INCOME	$150,860	$166,626

See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended March 31, 2022 and 2021
(Unaudited)



	2022	2021
	(In Thousands)

Net Income	$150,860	$166,626
Other comprehensive loss
Pension and other postretirement liabilities (net of tax benefit of $226 and $144)	(613)	(407)
Other comprehensive loss	(613)	(407)
Comprehensive Income	$150,247	$166,219

See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three Months Ended March 31, 2021 and 2020
(Unaudited)
2021 2020
(In Thousands)
OPERATING REVENUES
Electric $1,079,663 $912,541
Natural gas 27,981 18,106
TOTAL 1,107,644 930,647
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale 145,234 144,492
Purchased power 209,961 160,743
Nuclear refueling outage expenses 13,282 13,630
Other operation and maintenance 237,483 222,658
Decommissioning 16,823 16,001
Taxes other than income taxes 52,484 50,077
Depreciation and amortization 160,813 145,135
Other regulatory charges (credits) - net 31,097 11,132
TOTAL 867,177 763,868
OPERATING INCOME 240,467 166,779
OTHER INCOME
Allowance for equity funds used during construction 6,101 14,887
Interest and investment income 72,515 (19,669)
Miscellaneous - net (34,638) 49,601
TOTAL 43,978 44,819
INTEREST EXPENSE
Interest expense 82,806 79,517
Allowance for borrowed funds used during construction (2,759) (7,132)
TOTAL 80,047 72,385
INCOME BEFORE INCOME TAXES 204,398 139,213
Income taxes 37,772 (50,183)
NET INCOME $166,626 $189,396
See Notes to Financial Statements.


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2022 and 2021
(Unaudited)

	2022	2021
	(In Thousands)
OPERATING ACTIVITIES
Net income	$150,860	$166,626
Adjustments to reconcile net income to net cash flow provided by (used in) operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	213,022	198,868
Deferred income taxes, investment tax credits, and non-current taxes accrued	95,785	67,823
Changes in working capital:
Receivables	71,237	(13,080)
Fuel inventory	(46)	1,194
Accounts payable	(262,042)	(126,070)
Taxes accrued	(42,950)	20,619
Interest accrued	(857)	(9,163)
Deferred fuel costs	498	(203,815)
Other working capital accounts	(24,241)	(25,628)
Changes in provisions for estimated losses	2,694	(258)
Changes in other regulatory assets	(1,336,616)	(70,784)
Changes in other regulatory liabilities	(67,164)	22,503
Storm restoration costs approved for securitization recognized as regulatory asset	1,338,559	—
Changes in pension and other postretirement liabilities	(11,608)	(30,745)
Other	55,995	(52,688)
Net cash flow provided by (used in) operating activities	183,126	(54,598)

INVESTING ACTIVITIES
Construction expenditures	(935,692)	(945,831)
Allowance for equity funds used during construction	6,726	6,101


Nuclear fuel purchases	(55,913)	(52,435)
Proceeds from the sale of nuclear fuel	26,681	—




Changes to securitization account	—	(6,050)
Proceeds from nuclear decommissioning trust fund sales	155,269	291,275
Investment in nuclear decommissioning trust funds	(168,283)	(329,180)
Changes in money pool receivable - net	(66,621)	(62,346)

Litigation proceeds from settlement agreement	5,695	—

Other	17	—


Net cash flow used in investing activities	(1,032,121)	(1,098,466)

FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	1,506,637	1,399,245
Retirement of long-term debt	(401,411)	(368,707)




Distributions paid:
Common equity	(125,000)	—

Other	6,843	(3,678)
Net cash flow provided by financing activities	987,069	1,026,860

Net increase (decrease) in cash and cash equivalents	138,074	(126,204)
Cash and cash equivalents at beginning of period	18,573	728,020
Cash and cash equivalents at end of period	$156,647	$601,816

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$91,441	$89,432


See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three Months Ended March 31, 2021 and 2020
(Unaudited)
2021 2020
(In Thousands)
Net Income $166,626 $189,396
Other comprehensive income (loss)
Pension and other postretirement liabilities (net of tax expense (benefit) of ($144) and $3,340) (407) 9,467
Other comprehensive income (loss) (407) 9,467
Comprehensive Income $166,219 $198,863
See Notes to Financial Statements.


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, 2022 and December 31, 2021
(Unaudited)

	2022	2021
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$15,933	$195
Temporary cash investments	140,714	18,378
Total cash and cash equivalents	156,647	18,573

Accounts receivable:
Customer	256,931	355,265
Allowance for doubtful accounts	(11,092)	(29,231)
Associated companies	159,787	96,539
Other	49,735	36,674
Accrued unbilled revenues	174,038	174,768
Total accounts receivable	629,399	634,015

Deferred fuel costs	44,876	45,374
Fuel inventory	43,004	42,958
Materials and supplies - at average cost	490,752	485,325
Deferred nuclear refueling outage costs	33,947	39,582



Prepayments and other	58,384	44,187
TOTAL	1,457,009	1,310,014

OTHER PROPERTY AND INVESTMENTS
Investment in affiliate preferred membership interests	1,390,587	1,390,587
Decommissioning trust funds	2,005,369	2,114,523

Non-utility property - at cost (less accumulated depreciation)	338,365	337,247

Other	13,812	13,744
TOTAL	3,748,133	3,856,101

UTILITY PLANT
Electric	27,252,039	28,055,038

Natural gas	288,820	285,006

Construction work in progress	721,536	847,924
Nuclear fuel	200,163	209,418
TOTAL UTILITY PLANT	28,462,558	29,397,386
Less - accumulated depreciation and amortization	9,940,422	9,860,252
UTILITY PLANT - NET	18,522,136	19,537,134

DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:

Other regulatory assets	4,113,282	2,776,666
Deferred fuel costs	168,122	168,122
Other	39,358	27,801
TOTAL	4,320,762	2,972,589

TOTAL ASSETS	$28,048,040	$27,675,838

See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2021 and 2020
(Unaudited)
2021 2020
(In Thousands)
OPERATING ACTIVITIES
Net income $166,626 $189,396
Adjustments to reconcile net income to net cash flow provided by (used in) operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization 198,868 191,447
Deferred income taxes, investment tax credits, and non-current taxes accrued 67,823 (39,681)
Changes in working capital:
Receivables (13,080) 23,004
Fuel inventory 1,194 (456)
Accounts payable (126,070) (86,317)
Prepaid taxes and taxes accrued 20,619 48,840
Interest accrued (9,163) (2,384)
Deferred fuel costs (203,815) (18,280)
Other working capital accounts (25,628) (3,156)
Changes in provisions for estimated losses (258) (41,113)
Changes in other regulatory assets (70,784) 55,539
Changes in other regulatory liabilities 22,503 (129,370)
Changes in pension and other postretirement liabilities (30,745) (22,806)
Other (52,688) 149,136
Net cash flow provided by (used in) operating activities (54,598) 313,799
INVESTING ACTIVITIES
Construction expenditures (945,831) (344,522)
Allowance for equity funds used during construction 6,101 14,887
Nuclear fuel purchases (52,435) (18,052)
Proceeds from the sale of nuclear fuel 0 33,889
Receipts from storm reserve escrow account 0 40,589
Payments to storm reserve escrow account 0 (1,113)
Changes to securitization account (6,050) (5,348)
Proceeds from nuclear decommissioning trust fund sales 291,275 144,962
Investment in nuclear decommissioning trust funds (329,180) (154,065)
Changes in money pool receivable - net (62,346) (84,466)
Net cash flow used in investing activities (1,098,466) (373,239)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt 1,399,245 1,221,900
Retirement of long-term debt (368,707) (603,607)
Change in money pool payable - net 0 (82,826)
Common equity distributions paid 0 (11,500)
Other (3,678) (1,139)
Net cash flow provided by financing activities 1,026,860 522,828
Net increase (decrease) in cash and cash equivalents (126,204) 463,388
Cash and cash equivalents at beginning of period 728,020 2,006
Cash and cash equivalents at end of period $601,816 $465,394
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized $89,432 $79,794
Income taxes $0 ($20,684)
See Notes to Financial Statements.


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
March 31, 2022 and December 31, 2021
(Unaudited)

	2022	2021
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$200,000	$200,000

Accounts payable:
Associated companies	81,781	183,172
Other	872,120	1,481,902
Customer deposits	153,109	150,697
Taxes accrued	21,298	64,248

Interest accrued	92,195	93,052





Current portion of unprotected excess accumulated deferred income taxes	15,182	24,291
Other	56,709	68,995
TOTAL	1,492,394	2,266,357

NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	2,523,361	2,433,854
Accumulated deferred investment tax credits	101,408	102,588
Regulatory liability for income taxes - net	307,779	313,693

Other regulatory liabilities	990,456	1,042,597
Decommissioning	1,673,809	1,653,198
Accumulated provisions	27,185	24,490
Pension and other postretirement liabilities	516,628	528,213
Long-term debt	11,822,131	10,714,346

Other	387,083	415,930
TOTAL	18,349,840	17,228,909

Commitments and Contingencies

EQUITY

Member's equity	8,198,141	8,172,294
Accumulated other comprehensive income	7,665	8,278
TOTAL	8,205,806	8,180,572

TOTAL LIABILITIES AND EQUITY	$28,048,040	$27,675,838

See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, 2021 and December 31, 2020
(Unaudited)
2021 2020
(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash $233 $1,303
Temporary cash investments 601,583 726,717
Total cash and cash equivalents 601,816 728,020
Accounts receivable:
Customer 326,475 317,905
Allowance for doubtful accounts (46,655) (45,693)
Associated companies 144,640 81,624
Other 39,401 41,760
Accrued unbilled revenues 186,001 178,840
Total accounts receivable 649,862 574,436
Deferred fuel costs 206,065 2,250
Fuel inventory 49,486 50,680
Materials and supplies - at average cost 433,841 437,933
Deferred nuclear refueling outage costs 75,916 48,407
Prepayments and other 41,100 36,813
TOTAL 2,058,086 1,878,539
OTHER PROPERTY AND INVESTMENTS
Investment in affiliate preferred membership interests 1,390,587 1,390,587
Decommissioning trust funds 1,879,332 1,794,042
Non-utility property - at cost (less accumulated depreciation) 335,730 323,110
Other 13,521 13,399
TOTAL 3,619,170 3,521,138
UTILITY PLANT
Electric 25,960,969 25,619,789
Natural gas 268,865 262,744
Construction work in progress 526,575 667,281
Nuclear fuel 252,555 210,128
TOTAL UTILITY PLANT 27,008,964 26,759,942
Less - accumulated depreciation and amortization 9,502,347 9,372,224
UTILITY PLANT - NET 17,506,617 17,387,718
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets (includes securitization property of $0 as of March 31, 2021 and $5,088 as of December 31, 2020) 1,796,850 1,726,066
Deferred fuel costs 168,122 168,122
Other 32,212 23,924
TOTAL 1,997,184 1,918,112
TOTAL ASSETS $25,181,057 $24,705,507
See Notes to Financial Statements.


ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Three Months Ended March 31, 2022 and 2021
(Unaudited)

	Common Equity
	Member’s Equity	Accumulated Other Comprehensive Income	Total
	(In Thousands)

Balance at December 31, 2020	$7,453,361	$4,327	$7,457,688

Net income	166,626	—	166,626
Other comprehensive loss	—	(407)	(407)






Other	(16)	—	(16)
Balance at March 31, 2021	$7,619,971	$3,920	$7,623,891























Balance at December 31, 2021	$8,172,294	$8,278	$8,180,572

Net income	150,860	—	150,860
Other comprehensive loss	—	(613)	(613)


Distributions declared on common equity	(125,000)	—	(125,000)


Other	(13)	—	(13)
Balance at March 31, 2022	$8,198,141	$7,665	$8,205,806























See Notes to Financial Statements.

~~102~~

~~Table of Contents~~

ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
March 31, 2021 and December 31, 2020
(Unaudited)
2021 2020
(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt $200,000 $240,000
Accounts payable:
Associated companies 75,431 103,148
Other 685,493 1,450,008
Customer deposits 151,307 152,612
Taxes accrued 63,236 42,617
Interest accrued 83,086 92,249
Current portion of unprotected excess accumulated deferred income taxes 31,138 31,138
Other 60,652 62,968
TOTAL 1,350,343 2,174,740
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued 2,193,429 2,138,522
Accumulated deferred investment tax credits 106,135 107,317
Regulatory liability for income taxes - net 436,577 447,628
Other regulatory liabilities 951,847 918,293
Decommissioning 1,592,903 1,573,307
Accumulated provisions 24,681 24,939
Pension and other postretirement liabilities 661,999 692,728
Long-term debt (includes securitization bonds of $10,344 as of March 31, 2021 and $10,278 as of December 31, 2020) 9,859,885 8,787,451
Other 379,367 382,894
TOTAL 16,206,823 15,073,079
Commitments and Contingencies
EQUITY
Member's equity 7,619,971 7,453,361
Accumulated other comprehensive income 3,920 4,327
TOTAL 7,623,891 7,457,688
TOTAL LIABILITIES AND EQUITY $25,181,057 $24,705,507
See Notes to Financial Statements.

~~103~~

~~Table of Contents~~

ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Three Months Ended March 31, 2021 and 2020
(Unaudited)
Common Equity
Member’s
Equity Accumulated
Other
Comprehensive
Income Total
(In Thousands)
Balance at December 31, 2019 $6,392,556 $4,562 $6,397,118
Net income 189,396 0 189,396
Other comprehensive income 0 9,467 9,467
Distributions declared on common equity (11,500) 0 (11,500)
Other (10) 0 (10)
Balance at March 31, 2020 $6,570,442 $14,029 $6,584,471
Balance at December 31, 2020 $7,453,361 $4,327 $7,457,688
Net income 166,626 0 166,626
Other comprehensive loss 0 (407) (407)
Other (16) 0 (16)
Balance at March 31, 2021 $7,619,971 $3,920 $7,623,891
See Notes to Financial Statements.

~~104~~102

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ENTERGY MISSISSIPPI, LLC

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

~~The COVID-19 Pandemic~~

~~See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS -~~ ~~The COVID-19 Pandemic” in the Form 10-K for a discussion of the COVID-19 pandemic~~.

~~Winter Storm Uri~~

~~See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS -February 2021 Winter Storms~~” in the Form 10-K for a discussion of the winter storms and extreme cold temperatures experienced in Entergy Mississippi’s service area, in February 2021 (Winter Storm Uri). Fuel and purchased power costs for Entergy Mississippi were approximately $65 million in February 2021 compared to approximately $35 million in February 2020. See Note 2 to the financial statements in the Form 10-K for discussion of storm cost recovery and fuel cost recovery at Entergy Mississippi.

In February 2021 the MPSC announced that it would launch a comprehensive review of the condition and resiliency of the state’s public utility infrastructure in response to the impacts of the February 2021 winter storms. Although the MPSC did not open a formal docket, the MPSC submitted data requests to Entergy Mississippi regarding the actions taken to ensure reliable operations of the electric network during the winter storm events and in anticipation of other future extreme weather events. In April 2021 the MPSC opened a docket to investigate Entergy Mississippi’s membership in MISO. In the order, the MPSC noted the impact of the February 2021 winter storms, stating that it observed “excessive prices of natural gas and electricity” during the winter event. The MPSC has requested comments due 75 days after publication of the order.

Results of Operations

Net Income

Net income increased ~~$3.4~~$4.4 million primarily due to higher retail electric price, ~~and higher volume/weather,~~ partially offset by higher ~~other operation~~depreciation and ~~maintenance~~amortization expenses ~~a higher effective income tax rate,~~ and higher ~~depreciation and amortization~~interest expenses.

Operating Revenues

Following is an analysis of the change in operating revenues comparing the first quarter ~~2021~~2022 to the first quarter ~~2020:~~2021:


			Amount
			(In Millions)
~~2020~~2021 operating revenues			$~~293.9~~336.6
Fuel, rider, and other revenues that do not significantly affect net income			~~22.9~~ (2.2)
Retail electric price			~~12.3~~16.4
Volume/weather			~~7.5~~ (1.8)
~~2021~~2022 operating revenues			$~~336.6~~349.0

Entergy Mississippi’s results include revenues from rate mechanisms designed to recover fuel, purchased power, and other costs such that the revenues and expenses associated with these items generally offset and do not

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affect net income. “Fuel, rider, and other revenues that do not significantly affect net income” includes the revenue variance associated with these items.

The retail electric price variance is primarily due to increases in formula rate plan rates effective ~~with the first billing cycle of~~ April ~~2020~~2021 and ~~the implementation of a vegetation management rider effective with the April 2020 billing cycle.~~July 2021. See Note 2 to the financial statements in the Form 10-K for further discussion of the formula rate plan ~~filings and the vegetation management rider.~~filings.

The volume/weather variance is primarily due to ~~an increase~~a decrease in weather-adjusted residential usage, including the effect of ~~213 GWh, or 7%, in billed electricity usage, including~~the COVID-19 pandemic on first quarter 2021, partially offset by the effect of more favorable weather on residential ~~sales, partially offset by a decrease in industrial usage~~.and commercial sales.

~~Billed~~

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Total electric energy sales for Entergy Mississippi for the three months ended March 31,~~2021~~ 2022 and ~~2020~~2021 are as follows:


		2021	2020	% Change		2022	2021	% Change
		(GWh)				(GWh)
Residential	Residential	1,495	1,250	20	Residential	1,295	1,349	(4)
Commercial	Commercial	1,009	1,006	—	Commercial	1,021	1,004	2
Industrial	Industrial	520	556	(6)	Industrial	561	527	6
Governmental	Governmental	95	94	1	Governmental	96	95	1
Total retail	Total retail	3,119	2,906	7	Total retail	2,973	2,975	—
Sales for resale:	Sales for resale:				Sales for resale:
Non-associated companies	Non-associated companies	1,452	827	76	Non-associated companies	535	1,452	(63)
Total	Total	4,571	3,733	22	Total	3,508	4,427	(21)

See Note 13 to the financial statements herein for additional discussion of Entergy Mississippi’s operating revenues.

Other Income Statement Variances

~~Other operation and maintenance expenses~~Taxes other than income taxes increased primarily due ~~to:~~

•~~an increase of $4.1 million~~to increases in ~~vegetation maintenance costs;~~

•~~an increase of $1.4 million due to bad debt expense as a result of the COVID-19 pandemic;~~ad valorem taxes resulting from higher assessments and

•~~an increase of $1.4 million as a result of the amount of transmission costs allocated by MISO. See Note 2 to the financial statements for further information on the recovery of these costs.~~

~~The increase was partially offset by a decrease of $1.1 million in energy efficiency costs.~~ millage rate increases.

Depreciation and amortization expenses increased primarily ~~as a result of~~due to additions to plant in service.

Interest expense increased primarily due to the issuance of $200 million of 3.50% Series mortgage bonds in March 2021 and the issuance of $200 million of 2.55% Series mortgage bonds in November 2021.

Income Taxes

The effective income tax ~~rate was~~rates were 20.2% for the first quarter 2022 and 22.2% for the first quarter 2021. The ~~difference~~differences in the effective income tax ~~rate~~rates for the first quarter 2022 and the first quarter 2021 versus the federal statutory rate of 21% ~~was primarily~~were primarily due to certain book and tax differences related to utility plant items, partially offset by state income taxes.

The effective income tax rate was 7.7% for the first quarter 2020. The difference in the effective income tax rate for the first quarter 2020 versus the federal statutory rate of 21% was primarily due to certain book and tax differences related to utility plant items and permanent differences related to income tax deductions for stock-based104

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~~compensation, partially offset by state income taxes. See Note 3 to the financial statements in the Form 10-K for a discussion of the income tax deductions for stock-based compensation.~~

Liquidity and Capital Resources

Cash Flow

Cash flows for the three months ended March 31, ~~2021~~2022 and ~~2020~~2021 were as follows:


		2021	2020		2022	2021
		(In Thousands)			(In Thousands)
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	$18	$51,601	Cash and cash equivalents at beginning of period	$47,627	$18

Cash flow provided by (used in):
Net cash provided by (used in):				Net cash provided by (used in):
Operating activities	Operating activities	54,311	33,261	Operating activities	(4,340)	54,311
Investing activities	Investing activities	(162,802)	(103,615)	Investing activities	(61,154)	(162,802)
Financing activities	Financing activities	185,189	18,772	Financing activities	17,895	185,189
Net increase (decrease) in cash and cash equivalents	Net increase (decrease) in cash and cash equivalents	76,698	(51,582)	Net increase (decrease) in cash and cash equivalents	(47,599)	76,698

Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	$76,716	$19	Cash and cash equivalents at end of period	$28	$76,716

Operating Activities

~~Net cash flow provided by~~Entergy Mississippi’s operating activities ~~increased $21.1~~used $4.3 million of cash for the three months ended March 31, 2022 compared to providing $54.3 million of cash for the three months ended March 31, 2021 ~~compared to the three months ended March 31, 2020~~ primarily due to the following activity:

•timing of payments to ~~vendors. The increase was partially offset by increased fuel costs as~~ vendors;

•income tax refunds of $8 million received in 2021 in accordance with an intercompany income tax allocation agreement;

•higher collections from customers; and

•a ~~result~~decrease of $7.2 million in storm spending in 2022 primarily due to spending on Winter Storm Uri ~~and the timing of collections of receivables from customers,~~restoration efforts in ~~part due to the COVID-19 pandemic. See “Winter Storm Uri” above for discussion of the incremental fuel and purchased power costs incurred. See Note 2 to the financial statements in the Form 10-K for a discussion of fuel and purchased power cost recovery.~~2021.

Investing Activities

Net cash flow used in investing activities ~~increased $59.2~~decreased $101.6 million for the three months ended March 31, ~~2021~~2022 compared to the three months ended March 31, ~~2020~~2021 primarily due ~~to money pool activity and an increase~~to:

•a decrease of ~~$43.5~~$51.3 million in distribution construction expenditures primarily due to ~~increased spending on the reliability and infrastructure~~a higher scope of ~~Entergy Mississippi’s distribution system~~work performed in 2021 as compared to ~~2020. The increase was partially offset by $24.6 million in plant upgrades for Choctaw Generating Station in March 2020.~~2022; and

•money pool activity.

~~Increases~~Decreases in Entergy Mississippi’s receivable from the money pool are a ~~use~~source of cash flow, and Entergy Mississippi’s receivable from the money pool ~~increased~~decreased by $40.5 million for the three months ended March 31, 2022 compared to increasing $9.7 million for the three months ended March 31, ~~2021 compared to decreasing $44.7 million for the three months ended March 31, 2020.~~2021. The money pool is an inter-company borrowing arrangement designed to reduce the Utility’s subsidiaries’ need for external short-term borrowings.

Financing Activities

Net cash flow provided by financing activities ~~increased $166.4~~decreased $167.3 million for the three months ended March 31, ~~2021~~2022 compared to the three months ended March 31, ~~2020~~2021 primarily due to the issuance of $200 million of ~~3.5%~~3.50% Series mortgage bonds in March 2021, partially offset by money pool activity.

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Increases in Entergy Mississippi’s payable to the money pool are a source of cash flow and Entergy Mississippi’s payable to the money pool increased by $22.4 million for the three months ended March 31, 2022 compared to decreasing by $16.5 million for the three months ended March 31, 2021.

See Note 4 to the financial statements herein and Note 5 to the financial statements in the Form 10-K for more details on long-term debt.

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Decreases in Entergy Mississippi’s payable to the money pool are a use of cash flow, and Entergy Mississippi’s payable to the money pool decreased by $16.5 million for the three months ended March 31, 2021 compared to increasing by $19 million for the three months ended March 31, 2020.

Capital Structure

Entergy Mississippi’s debt to capital ratio is shown in the following table. ~~The increase in the debt to capital ratio for Entergy Mississippi is primarily due to the issuance of $200 million of mortgage bonds in March 2021.~~


		March 31, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Debt to capital	Debt to capital	54.0	%	51.7	%	Debt to capital	53.9	%	54.3	%
Effect of subtracting cash	Effect of subtracting cash	(1.0	%)	—	%	Effect of subtracting cash	—	%	(0.5	%)
Net debt to net capital	Net debt to net capital	53.0	%	51.7	%	Net debt to net capital	53.9	%	53.8	%

Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, and long-term debt, including the currently maturing portion. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. Entergy Mississippi uses the debt to capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Mississippi’s financial condition. Entergy Mississippi also uses the net debt to net capital ratio in analyzing its financial condition and believes it provides useful information to its investors and creditors in evaluating Entergy Mississippi’s financial condition because net debt indicates Entergy Mississippi’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

Uses and Sources of Capital

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy Mississippi’s uses and sources of capital. Following are updates to the information provided in the Form 10-K.

Entergy Mississippi’s receivables from or (payables to) the money pool were as follows:

March 31, 2021 December 31, 2020 March 31, 2020 December 31, 2019
(In Thousands)
$9,683 ($16,516) ($19,006) $44,693


March 31, 2022	December 31, 2021	March 31, 2021	December 31, 2020
(In Thousands)
($22,386)	$40,456	$9,683	($16,516)

See Note 4 to the financial statements in the Form 10-K for a description of the money pool.

As of March 31, 2022, Entergy Mississippi ~~has~~had three separate credit facilities in the aggregate amount of $82.5 million scheduled to expire in April 2022. No borrowings were outstanding under the credit facilities as of March 31, ~~2021.~~2022. In April 2022, Entergy Mississippi renewed the three separate existing credit facilities and increased the aggregate amount available under the facilities to $95 million, and extended the expiration date of each credit facility to April 2023. Also in April 2022, Entergy Mississippi entered into a credit facility in the amount of $150 million with an expiration date of July 2024. In addition, Entergy Mississippi is a party to an uncommitted letter of credit facility primarily as a means to post collateral to support its obligations to MISO. As of March 31, ~~2021, $1~~2022, $2.3 million ofin MISO letters of credit and $1 million ofin non-MISO letters of credit were outstanding under this facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

~~Entergy Mississippi has $33 million in its storm reserve escrow account at March 31, 2021.~~

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Entergy Mississippi had $33.2 million in its storm reserve escrow account at March 31, 2022.

Sunflower Solar Facility

As discussed in the Form 10-K, in November 2018, Entergy Mississippi announced that it signed an agreement for the purchase of an approximately 100 MW solar photovoltaic facility that will be sited on approximately 1,000 acres in Sunflower County, Mississippi. The estimated total investment, including the base purchase price and other related costs, for Entergy Mississippi to acquire the Sunflower Solar Facility is approximately $153.2 million. Entergy Mississippi will purchase the facility upon mechanical completion and after the other purchase contingencies have been met. In April 2020 the MPSC issued an order approving certification of the Sunflower Solar Facility and its recovery through Entergy Mississippi’s interim capacity rate adjustment mechanism, subject to certain conditions including: (i) that Entergy Mississippi pursue a partnership structure through which the partnership would acquire and own the facility under the build-own-transfer agreement, and (ii) that if Entergy Mississippi does not consummate the partnership structure under the terms of the order, there will be a cap of $136 million on the level of recoverable costs. In April 2022, Entergy Mississippi confirmed mechanical completion of the Sunflower Solar Facility. The initial closing is targeted to occur in May 2022. In conjunction with closing, Entergy Mississippi is executing a partnership structure through which the partnership will acquire and own the Sunflower Solar Facility. Final payment of the purchase price will be made upon substantial completion of the facility, which is currently expected in third quarter 2022.

State and Local Rate Regulation and Fuel-Cost Recovery

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - State and Local Rate Regulation and Fuel-Cost Recovery” in the Form 10-K for a discussion of the formula rate plan and fuel and purchased power cost recovery. The following are updates to that discussion.

~~2021~~2022 Formula Rate Plan Filing

In March ~~2021,~~2022, Entergy Mississippi submitted its formula rate plan ~~2021~~2022 test year filing and ~~2020~~2021 look-back filing showing Entergy Mississippi’s earned return for the historical ~~2020~~2021 calendar year to be below the formula rate plan bandwidth and projected earned return for the ~~2021~~2022 calendar year to be below the formula rate plan bandwidth.The ~~2020~~2022 test year filing shows a ~~$95.4~~$69 million rate increase is necessary to reset Entergy Mississippi’s earned return on common equity to the specified point of adjustment of ~~6.69%~~6.70% return on rate base, within the formula rate plan bandwidth. The change in formula rate plan revenues, however, is capped at 4% of retail revenues, which equates to a revenue change of ~~$44.3~~$48.6 million. The 2021 evaluation report also includes $3.9 million in demand side management costs for which the MPSC approved realignment of recovery from the energy efficiency rider to the formula rate plan. These costs are not subject to the 4% cap and result in a total change in formula rate plan revenues of $48.2 million. The 2020 look-back filing compares actual ~~2020~~2021 results to the approved benchmark return on rate base and reflects the need for a ~~$16.8~~$34.5 million interim increase in formula rate plan revenues. In ~~addition,~~fourth quarter 2021, Entergy Mississippi recorded a regulatory asset of $19 million to reflect the ~~2020 look-back filing includes an interim capacity adjustment true-up for the Choctaw Generating Station, which increases~~then-current estimate in connection with the look-back ~~interim~~feature of the formula rate ~~adjustment by $1.7 million.~~plan. T~~hese interim rate adjustments total $18.5 million.~~ In accordance with the provisions of the formula rate plan, Entergy Mississippi implemented a ~~$22.1~~$24.3 million interim rate increase, reflecting a cap equal to 2% of ~~2020~~2021 retail revenues, effective ~~with the~~in April ~~2021 billing cycle,~~2022, subject to refund, pending a final MPSC order. The $3.9 million of demand side management costs and the Choctaw Generating Station true-up of $1.7 million, which are not subject to the 2% cap of 2020 retail revenues, were included in the April 2021 rate adjustments. A final order is expected in the second quarter ~~2021,~~2022, with the resulting final rates, including amounts above the 2% cap of ~~2020~~2021 retail revenues, effective July ~~2021.~~2022.

COVID-19 Orders

As discussed in the Form 10-K, in April 2020 the MPSC issued an order authorizing utilities to defer incremental costs and expenses associated with COVID-19 compliance and to seek future recovery through rates of the prudently incurred incremental costs and expenses. In December 2020, Entergy Mississippi resumed disconnections for commercial, industrial, and governmental customers with past-due balances that have not made payment arrangements. In January 2021, Entergy Mississippi resumed disconnecting service for residential customers with past-due balances that have not made payment arrangements. As of March 31, ~~2021,~~2022, Entergy Mississippi ~~recorded~~had a regulatory asset of ~~$16.3~~$14.1 million for costs associated with the COVID-19 pandemic.

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Federal Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Federal Regulation” in the Form 10-K for a discussion of federal regulation.

Nuclear Matters

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Nuclear Matters” in the Form 10-K for a discussion of nuclear matters.

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Environmental Risks

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Environmental Risks” in the Form 10-K for a discussion of environmental risks.

Critical Accounting Estimates

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K for a discussion of the estimates and judgments necessary in Entergy Mississippi’s accounting for utility regulatory accounting, impairment of long-lived assets, taxation and uncertain tax positions, qualified pension and other postretirement benefits, and other contingencies.

New Accounting Pronouncements

See “New Accounting Pronouncements” section of Note 1 to the financial statements in the Form 10-K for a discussion of new accounting pronouncements.

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ENTERGY MISSISSIPPI, LLC	ENTERGY MISSISSIPPI, LLC		ENTERGY MISSISSIPPI, LLC
INCOME STATEMENTS	INCOME STATEMENTS		INCOME STATEMENTS
For the Three Months Ended March 31, 2021 and 2020
For the Three Months Ended March 31, 2022 and 2021						For the Three Months Ended March 31, 2022 and 2021
(Unaudited)	(Unaudited)		(Unaudited)

				2021	2020			2022	2021
		(In Thousands)					(In Thousands)
OPERATING REVENUES	OPERATING REVENUES					OPERATING REVENUES
Electric	Electric			$336,619	$293,922	Electric		$349,029	$336,619

OPERATING EXPENSES	OPERATING EXPENSES					OPERATING EXPENSES
Operation and Maintenance:	Operation and Maintenance:					Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	Fuel, fuel-related expenses, and gas purchased for resale			60,197	63,297	Fuel, fuel-related expenses, and gas purchased for resale		67,277	60,197
Purchased power	Purchased power			68,591	52,643	Purchased power		61,212	68,591
Other operation and maintenance	Other operation and maintenance			67,831	62,337	Other operation and maintenance		65,811	67,831

Taxes other than income taxes	Taxes other than income taxes			25,899	27,190	Taxes other than income taxes		32,730	25,899
Depreciation and amortization	Depreciation and amortization			55,036	51,155	Depreciation and amortization		60,084	55,036
Other regulatory charges (credits) - net	Other regulatory charges (credits) - net			8,129	(3,881)	Other regulatory charges (credits) - net		3,907	8,129
TOTAL	TOTAL			285,683	252,741	TOTAL		291,021	285,683

OPERATING INCOME	OPERATING INCOME			50,936	41,181	OPERATING INCOME		58,008	50,936

OTHER DEDUCTIONS	OTHER DEDUCTIONS					OTHER DEDUCTIONS
Allowance for equity funds used during construction	Allowance for equity funds used during construction			1,668	1,439	Allowance for equity funds used during construction		1,078	1,668
Interest and investment income	Interest and investment income			42	120	Interest and investment income		64	42
Miscellaneous - net	Miscellaneous - net			(2,313)	(2,296)	Miscellaneous - net		(1,153)	(2,313)
TOTAL	TOTAL			(603)	(737)	TOTAL		(11)	(603)

INTEREST EXPENSE	INTEREST EXPENSE					INTEREST EXPENSE
Interest expense	Interest expense			17,613	16,583	Interest expense		20,434	17,613
Allowance for borrowed funds used during construction	Allowance for borrowed funds used during construction			(677)	(551)	Allowance for borrowed funds used during construction		(465)	(677)
TOTAL	TOTAL			16,936	16,032	TOTAL		19,969	16,936

INCOME BEFORE INCOME TAXES	INCOME BEFORE INCOME TAXES			33,397	24,412	INCOME BEFORE INCOME TAXES		38,028	33,397

Income taxes	Income taxes			7,425	1,886	Income taxes		7,673	7,425

NET INCOME	NET INCOME			$25,972	$22,526	NET INCOME		$30,355	$25,972

See Notes to Financial Statements.	See Notes to Financial Statements.					See Notes to Financial Statements.

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ENTERGY MISSISSIPPI, LLC	ENTERGY MISSISSIPPI, LLC			ENTERGY MISSISSIPPI, LLC
STATEMENTS OF CASH FLOWS	STATEMENTS OF CASH FLOWS			STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2021 and 2020
For the Three Months Ended March 31, 2022 and 2021				For the Three Months Ended March 31, 2022 and 2021
(Unaudited)	(Unaudited)			(Unaudited)
		2021	2020		2022	2021
		(In Thousands)			(In Thousands)
OPERATING ACTIVITIES	OPERATING ACTIVITIES			OPERATING ACTIVITIES
Net income	Net income	$25,972	$22,526	Net income	$30,355	$25,972
Adjustments to reconcile net income to net cash flow provided by operating activities:
Adjustments to reconcile net income to net cash flow provided by (used in) operating activities:				Adjustments to reconcile net income to net cash flow provided by (used in) operating activities:
Depreciation and amortization	Depreciation and amortization	55,036	51,155	Depreciation and amortization	60,084	55,036
Deferred income taxes, investment tax credits, and non-current taxes accrued	Deferred income taxes, investment tax credits, and non-current taxes accrued	22,593	2,762	Deferred income taxes, investment tax credits, and non-current taxes accrued	3,979	22,593
Changes in assets and liabilities:	Changes in assets and liabilities:			Changes in assets and liabilities:
Receivables	Receivables	4,557	17,971	Receivables	(6,379)	4,557
Fuel inventory	Fuel inventory	1,736	(3,266)	Fuel inventory	23	1,736
Accounts payable	Accounts payable	26,391	(8,125)	Accounts payable	989	26,391
Taxes accrued	Taxes accrued	(75,886)	(58,651)	Taxes accrued	(63,785)	(75,886)
Interest accrued	Interest accrued	4,238	6,201	Interest accrued	10,613	4,238
Deferred fuel costs	Deferred fuel costs	(25,722)	13,406	Deferred fuel costs	(24,076)	(25,722)
Other working capital accounts	Other working capital accounts	(3,425)	7,849	Other working capital accounts	(46,494)	(3,425)
Provisions for estimated losses	Provisions for estimated losses	(7,689)	(47)	Provisions for estimated losses	(179)	(7,689)
Other regulatory assets	Other regulatory assets	11,015	(8,484)	Other regulatory assets	16,301	11,015
Other regulatory liabilities	Other regulatory liabilities	19,147	(5,532)	Other regulatory liabilities	21,689	19,147
Pension and other postretirement liabilities	Pension and other postretirement liabilities	(5,668)	(2,482)	Pension and other postretirement liabilities	(3,906)	(5,668)
Other assets and liabilities	Other assets and liabilities	2,016	(2,022)	Other assets and liabilities	(3,554)	2,016
Net cash flow provided by operating activities		54,311	33,261
Net cash flow provided by (used in) operating activities				Net cash flow provided by (used in) operating activities	(4,340)	54,311

INVESTING ACTIVITIES	INVESTING ACTIVITIES			INVESTING ACTIVITIES
Construction expenditures	Construction expenditures	(154,788)	(124,986)	Construction expenditures	(102,686)	(154,788)
Allowance for equity funds used during construction	Allowance for equity funds used during construction	1,668	1,439	Allowance for equity funds used during construction	1,078	1,668

Changes in money pool receivable - net	Changes in money pool receivable - net	(9,683)	44,693	Changes in money pool receivable - net	40,456	(9,683)
Payment for the purchase of plant or assets		0	(24,633)

Other	Other	1	(128)	Other	(2)	1
Net cash flow used in investing activities	Net cash flow used in investing activities	(162,802)	(103,615)	Net cash flow used in investing activities	(61,154)	(162,802)

FINANCING ACTIVITIES	FINANCING ACTIVITIES			FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	Proceeds from the issuance of long-term debt	200,573	0	Proceeds from the issuance of long-term debt	—	200,573

Changes in money pool payable - net	Changes in money pool payable - net	(16,516)	19,006	Changes in money pool payable - net	22,386	(16,516)

Common equity distributions paid		0	(2,500)

Other	Other	1,132	2,266	Other	(4,491)	1,132
Net cash flow provided by financing activities	Net cash flow provided by financing activities	185,189	18,772	Net cash flow provided by financing activities	17,895	185,189

Net increase (decrease) in cash and cash equivalents	Net increase (decrease) in cash and cash equivalents	76,698	(51,582)	Net increase (decrease) in cash and cash equivalents	(47,599)	76,698
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	18	51,601	Cash and cash equivalents at beginning of period	47,627	18
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	$76,716	$19	Cash and cash equivalents at end of period	$28	$76,716

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:	SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:			SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:	Cash paid (received) during the period for:			Cash paid (received) during the period for:
Interest - net of amount capitalized	Interest - net of amount capitalized	$12,757	$9,800	Interest - net of amount capitalized	$9,160	$12,757
Income taxes	Income taxes	($8,045)	$0	Income taxes	$—	($8,045)

See Notes to Financial Statements.	See Notes to Financial Statements.			See Notes to Financial Statements.

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ENTERGY MISSISSIPPI, LLC	ENTERGY MISSISSIPPI, LLC			ENTERGY MISSISSIPPI, LLC
BALANCE SHEETS	BALANCE SHEETS			BALANCE SHEETS
ASSETS	ASSETS			ASSETS
March 31, 2021 and December 31, 2020
March 31, 2022 and December 31, 2021				March 31, 2022 and December 31, 2021
(Unaudited)	(Unaudited)			(Unaudited)
		2021	2020		2022	2021
		(In Thousands)			(In Thousands)
CURRENT ASSETS	CURRENT ASSETS			CURRENT ASSETS
Cash and cash equivalents:	Cash and cash equivalents:			Cash and cash equivalents:
Cash	Cash	$11	$11	Cash	$26	$29
Temporary cash investments	Temporary cash investments	76,705	7	Temporary cash investments	2	47,598
Total cash and cash equivalents	Total cash and cash equivalents	76,716	18	Total cash and cash equivalents	28	47,627
Accounts receivable:	Accounts receivable:			Accounts receivable:
Customer	Customer	104,649	105,732	Customer	86,389	84,048
Allowance for doubtful accounts	Allowance for doubtful accounts	(16,771)	(19,527)	Allowance for doubtful accounts	(3,396)	(7,209)
Associated companies	Associated companies	13,857	2,740	Associated companies	5,008	42,994
Other	Other	13,596	11,821	Other	17,994	14,609
Accrued unbilled revenues	Accrued unbilled revenues	50,075	59,514	Accrued unbilled revenues	50,404	56,034
Total accounts receivable	Total accounts receivable	165,406	160,280	Total accounts receivable	156,399	190,476
Deferred fuel costs	Deferred fuel costs	11,031	0	Deferred fuel costs	145,954	121,878

Fuel inventory - at average cost	Fuel inventory - at average cost	15,381	17,117	Fuel inventory - at average cost	10,288	10,311
Materials and supplies - at average cost	Materials and supplies - at average cost	61,336	59,542	Materials and supplies - at average cost	75,509	69,639

Prepayments and other	Prepayments and other	3,792	4,876	Prepayments and other	40,847	6,394
TOTAL	TOTAL	333,662	241,833	TOTAL	429,025	446,325

OTHER PROPERTY AND INVESTMENTS	OTHER PROPERTY AND INVESTMENTS			OTHER PROPERTY AND INVESTMENTS
Non-utility property - at cost (less accumulated depreciation)	Non-utility property - at cost (less accumulated depreciation)	4,539	4,543	Non-utility property - at cost (less accumulated depreciation)	4,523	4,527
Escrow accounts	Escrow accounts	64,637	64,635	Escrow accounts	48,888	48,886
TOTAL	TOTAL	69,176	69,178	TOTAL	53,411	53,413

UTILITY PLANT	UTILITY PLANT			UTILITY PLANT
Electric	Electric	6,151,971	6,084,730	Electric	6,650,580	6,613,109

Construction work in progress	Construction work in progress	192,649	134,854	Construction work in progress	120,538	95,452
TOTAL UTILITY PLANT	TOTAL UTILITY PLANT	6,344,620	6,219,584	TOTAL UTILITY PLANT	6,771,118	6,708,561
Less - accumulated depreciation and amortization	Less - accumulated depreciation and amortization	2,046,216	2,005,087	Less - accumulated depreciation and amortization	2,159,949	2,127,590
UTILITY PLANT - NET	UTILITY PLANT - NET	4,298,404	4,214,497	UTILITY PLANT - NET	4,611,169	4,580,971

DEFERRED DEBITS AND OTHER ASSETS	DEFERRED DEBITS AND OTHER ASSETS			DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:	Regulatory assets:			Regulatory assets:

Other regulatory assets	Other regulatory assets	456,326	467,341	Other regulatory assets	446,131	462,432
Other	Other	19,886	14,413	Other	18,880	14,248
TOTAL	TOTAL	476,212	481,754	TOTAL	465,011	476,680

TOTAL ASSETS	TOTAL ASSETS	$5,177,454	$5,007,262	TOTAL ASSETS	$5,558,616	$5,557,389

See Notes to Financial Statements.	See Notes to Financial Statements.			See Notes to Financial Statements.

Table of five unplanned plant scrams during calendar year 2020, some of which were related to upgrades made to the plant’s turbine control system during the spring 2020 refueling outage. The NRC plans to conduct a supplemental inspection of Grand Gulf in accordance with its inspection procedures for nuclear plants in Column 3.Contents

Environmental Regulation

Following are updates to the “Environmental Regulation” section of Part I, Item 1 of the Form 10-K.

~~Clean Air Act and Subsequent Amendments~~

~~See the Form 10-K for discussion of the Clean Air Act and Subsequent Amendments set by the EPA in accordance with the Clean Air Act. Following are updates to that discussion.~~

~~New Source Review~~

As discussed in the Form 10-K, in January and February 2018, Entergy Arkansas, Entergy Mississippi, Entergy Power, and other co-owners received 60-day notice of intent to sue letters from the Sierra Club and the National Parks Conservation Association concerning allegations of violations of new source review and permitting provisions of the Clean Air Act at the Independence and White Bluff coal-burning units, respectively. In November 2018, following extensive negotiations, Entergy Arkansas, Entergy Mississippi, and Entergy Power entered a proposed settlement resolving those claims as well as other issues facing Entergy Arkansas’s fossil generation plants. The settlement, which formally resolves a complaint filed by the Sierra Club and the National Parks Conservation Association, was subject to approval by the U.S. District Court for the Eastern District of Arkansas. In March 2021 the District Court approved and entered the proposed settlement. For further information about the settlement, see “Regional Haze” discussed below.

National Ambient Air Quality Standards

See the Form 10-K for discussion of the National Ambient Air Quality Standards (NAAQS) set by the EPA in accordance with the Clean Air Act. Following are updates to that discussion.

~~156~~

~~Table of Contents~~

Hazardous Air Pollutants

The EPA released the final Mercury and Air Toxics Standard (MATS) rule in December 2011, which had a compliance date, with a widely granted one-year extension, of April 2016. The required controls have been installed and are operational at all affected Entergy units. In May 2020 the EPA finalized a rule that finds that it is not “appropriate and necessary” to regulate hazardous air pollutants from electric steam generating units under the provisions of section 112(n) of the Clean Air Act. This is a reversal of the EPA’s previous finding requiring such regulation. The final appropriate and necessary finding does not revise the underlying MATS rule. Several lawsuits have been filed challenging the appropriate and necessary finding. In February 2021 the D.C. Circuit granted the EPA’s motion to hold the litigation in abeyance pending the agency’s review of the appropriate and necessary rule. In February 2022 the EPA issued a proposed rule revoking the 2020 rule and determining, again, that it is “appropriate and necessary” to regulate hazardous air pollutants. The EPA ~~must file status reports with~~is seeking additional information, which it could use to further tighten the ~~court every 120 days.~~standard. Entergy will continue to monitor this situation.

Cross-State Air Pollution

As discussed in the Form 10-K, ~~for 12 states, including Louisiana,~~the Cross-State Air Pollution Rule (CSAPR) has been remanded to and modified by the EPA ~~proposes additional~~on multiple occasions. In April 2022 the EPA published a rule to address interstate transport for the 2015 ozone NAAQS and which will increase the stringency of the CSAPR program in all four of the states where the Utility operating companies operate. If finalized as proposed, the rule will significantly reduce emission ~~reductions through proposed reductions in~~allowances and would likely require the ~~number~~installation of post-combustion nitrogen oxides (NOx) emissions controls on any coal or large legacy gas units that will operate beyond 2026 and are not currently equipped with such controls, including certain of Entergy’s plants. Additionally the EPA is proposing controls on certain non-electric generating NOx ~~emission~~sources. Since releasing the proposed rule, the price for Group 3 allowances ~~allocated~~has increased to ~~each state. Entergy, through its various trade associations, filed comments~~$8,500 per allowance. Comments on the ~~proposal. In March 2021 the EPA released the prepublication version of the final~~proposed rule ~~which further decreases the Louisiana ozone season emissions budget from that~~are due in ~~the proposed rule.~~June 2022, and Entergy is currently ~~analyzing~~evaluating the ~~potential impact on its facilities in Louisiana. Preliminary analysis indicates that ozone season NO~~x ~~allowances may become significantly more expensive in Louisiana, which could impact the cost of dispatching Entergy’s generating units located in Louisiana.~~publication.

Regional Haze

As discussed in the Form 10-K, ~~in January and February 2018, Entergy Arkansas, Entergy Mississippi, Entergy Power, and other co-owners received 60-day notice of intent to sue letters from~~ the Sierra Club and the National Parks Conservation Association concerning allegations of violations of new source review and permitting provisions of the Clean Air Act at the Independence and White Bluff coal-burning units, respectively. In November 2018, following extensive negotiations, Entergy Arkansas, Entergy Mississippi, and Entergy Power entered a proposed settlement resolving those claims and reducing the risk that Entergy Arkansas, as operator of Independence and White Bluff, might be compelled under the Clean Air Act’s regional haze program to install costly emissions control technologies. Consistent with the terms of the settlement and in many cases also the Part II state implementation plan (SIP), Entergy Arkansas, along with co-owners, will begin using only low-sulfur coal at Independence and White Bluff by mid-2021; cease to use coal at White Bluff and Independence by the end of 2028 and 2030, respectively; cease operation of the remaining gas unit at Lake Catherine by the end of 2027; reserve the option to develop new generating sources at each plant site; and commit to install or propose to regulators at least 800 MWs of renewable generation by the end of 2027, with at least half installed or proposed by the end of 2022 (which includes two existing Entergy Arkansas projects) and with all qualifying co-owner projects counting toward satisfaction of the obligation. Under the settlement, the Sierra Club and the National Parks Conservation Association also waive certain potential existing claims under federal and state environmental law with respect to specified generating plants. The settlement, which formally resolves a complaint filed by the Sierra Club and the National Parks Conservation Association, was subject to approval by the U.S. District Court for the Eastern District of Arkansas. In November 2020 the court denied motions by the Arkansas Attorney General and the Arkansas Affordable Energy Coalition to intervene and to stay the proceedings. The proposed intervenors did not appeal the ruling. The District Court approved and entered the proposed settlement in March 2021.

~~The~~ second planning period (2018-2028) for the regional haze program ~~requires~~required states to examine sources for impacts on visibility and to prepare ~~SIPs~~State Implementation Plans (SIPs) by July 31, ~~2021. Entergy has received information collection requests from~~2021 which the Arkansas Department of Energy and ~~Louisiana requesting an evaluation~~Environment, Division of ~~technical~~Environmental Quality (ADEQ) did not meet. The ADEQ released a draft proposed SIP in February 2022. The ADEQ reviewed Entergy’s Independence plant, but determined that additional air emission controls would not be cost-effective considering the facility’s commitment to cease coal-fired combustion by December 31, 2030. The ADEQ is expected to finalize this SIP and ~~economic feasibility of various NO~~x ~~and SO~~2 ~~control technologies for Independence, Nelson 6, and Ninemile. Responses~~submit to the ~~information requests have been~~EPA for review by the end of 2022.

The Texas Commission on Environmental Quality has completed its second-planning period SIP and submitted it to the ~~respective state agencies.~~EPA for review. There were no Entergy sources selected for additional emission controls. The Mississippi Department of Environmental Quality continues to develop its SIP, but there are no Entergy sources that are expected to be impacted.

~~157~~

153

Table of Contents

~~New and Existing Source Performance Standards for Greenhouse Gas Emissions~~

As discussed in the Form 10-K, in January 2021 the U.S. Court of Appeals for the D.C. Circuit vacated the Affordable Clean Energy Rule (ACE). The court held that ACE relied on an incorrect interpretation of the Clean Air Act that the statute expressly forecloses emission reduction approaches, such as emissions trading and generating shifting, that cannot be applied at and to the individual source. The court remanded ACE to the EPA for further consideration and also vacated the repeal of the Clean Power Plan. In March 2021 the D.C. Circuit issued a partial mandate vacating the ACE rule, but withheld the mandate vacating the repeal of the Clean Power Plan pending the EPA’s new rulemaking to regulate greenhouse gas emissions. Thus, the Clean Power Plan will not take effect during the rulemaking process and there currently is no regulation in place with respect to greenhouse gas emissions from electric generating units and states are not expected to take further action to develop and submit plans at this time.

~~Coal Combustion Residuals~~

As discussed in the Form 10-K, in late 2017, Entergy determined that certain in-ground wastewater treatment system recycle ponds at its White Bluff and Independence facilities require management under the new EPA regulations. Each site has commenced closure of its two recycle ponds (four ponds total), prior to the April 11, 2021 deadline under the finalized CCR rule for unlined recycle ponds.

~~Other Environmental Matters~~

~~Entergy Texas~~

As discussed in the Form 10-K, due to COVID-19 pandemic delays, the Texas Commission on Environmental Quality (TCEQ) extended the Affected Property Assessment Report (APAR) and Ecological Risk Assessment submittal dates to December 2020, which Entergy timely met. Following the TCEQ’s review of the APAR and Ecological Risk Assessment, the TCEQ issued a No Further Action determination for the site in March 2021.

Item 6. Exhibits


			4(a) -			~~Officer’s Certificate for Entergy Corporation relating to 1.90% Senior Notes due June 15, 2028 (4.02(a) to Form 8-K filed March 5, 2021 in 1-11299).~~

			~~4(b) -~~			~~Officer’s Certificate for Entergy Corporation relating to 2.40% Senior Notes due June 15, 20~~3 ~~1 (4.02(b) to Form 8-K filed March 5, 2021 in 1-11299).~~

			~~4(c) -~~			~~Eighty-fourth~~ ~~Supplemental Indenture, dated as of~~ ~~March~~ ~~1, 202~~1 ~~, to Entergy Arkansas Mortgage and Deed of Trust, dated as of October 1, 1944 (4.49 to Form 8-K filed~~ ~~March 30, 202~~1 ~~in 1-10764).~~

			~~4(d) -~~			~~Ninety-fifth Supplemental Indenture, dated as of March 1, 2021, to Entergy Louisiana Mortgage and Deed of Trust,~~Credit Agreement dated as of April ~~1, 1944 (4.53 to Form 8-K filed March 10, 2021 in 1-32718).~~

			~~4(e) -~~			~~Ninety-fourth Supplemental Indenture, dated~~14, 2022, among Entergy Mississippi, as ~~of March 1, 2021, to Entergy Louisiana Indenture of Mortgage, dated September 1, 1926 (4.52 to Form 8-K filed March 10, 2021 in 1-32718).~~

			~~4(f) -~~			~~Fifteenth Supplemental Indenture, dated~~Borrower, the banks and other financial institutions listed on the signature pages thereof, as ~~of March 1, 2021, to Entergy Louisiana Mortgage~~Lenders, and ~~Deed of Trust, dated~~Citibank, N.A., as ~~of November 1, 2015 (4.51 to Form 8-K filed March 10, 2021 in 1-32718).~~

			~~4(g) -~~			~~Sixteenth Supplemental Indenture, dated as of April 1, 2021, to Entergy Louisiana Mortgage and Deed of Trust, dated as of November 1, 2015 (4(b)~~Administrative Agent (4.1 to Form 8-K filed April ~~1, 2021~~14, 2022 in ~~1-32718).~~

~~158~~

~~Table of Contents~~


			~~4(h) -~~			~~Officer’s Certificate No. 2~~1 ~~-B-1~~5 ~~, dated~~ ~~March 1, 2021, supplemental to Mortgage and Deed of Trust of Entergy Louisiana, dated as of November 1, 2015 (4.50(a)~~ ~~to Form 8-K filed~~ ~~March 10,2021~~ ~~in 1-32718~~).

			~~4(i) -~~			~~Officer’s Certificate No. 2~~1 ~~-B-1~~6 ~~, dated~~ ~~March 1, 2021, supplemental to Mortgage and Deed of Trust of Entergy Louisiana, dated as of November 1, 2015 (4.50(b)~~ ~~to Form 8-K filed~~ ~~March 10, 2021~~ ~~in 1-32718).~~

			~~4(j) -~~			~~Officer’s Certificate No. 2~~2 ~~-B-1~~7 ~~, dated~~ ~~April~~ ~~1, 2021, supplemental to Mortgage and Deed of Trust of Entergy Louisiana, dated as of November 1, 2015 (4(a) to Form 8-K filed~~ ~~April~~ 1 ~~, 2021~~ ~~in 1-32718~~).

			~~4(k) -~~			Loan Agreement, dated as of April 1, 2021, between the Louisiana Local Government Environmental Facilities and Community Development Authority and Entergy Louisiana relating to Revenue Refunding Bonds (Entergy Louisiana, LLC Project) Series 2021A (4(c) to Form 8-K filed April 1, 2021 in 1-32718).

			~~4(l) -~~			Trust Indenture, dated as of April 1, 2021, between the Louisiana Local Government Environmental Facilities and Community Development Authority and The Bank of New York Mellon authorizing Revenue Refunding Bonds (Entergy Louisiana, LLC Project) Series 2021A (4(d) to Form 8-K filed April 1, 2021 in 1-32718).

			~~4(m) -~~			Loan Agreement, dated as of April 1, 2021, between the Louisiana Local Government Environmental Facilities and Community Development Authority and Entergy Louisiana relating to Revenue Refunding Bonds (Entergy Louisiana, LLC Project) Series 2021B (4(e) to Form 8-K filed April 1, 2021 in 1-32718).

			~~4(n) -~~			Trust Indenture, dated as of April 1, 2021, between the Louisiana Local Government Environmental Facilities and Community Development Authority and The Bank of New York Mellon authorizing Revenue Refunding Bonds (Entergy Louisiana, LLC Project) Series 2021B (4(f) to Form 8-K filed April 1, 2021 in 1-32718)1-31508).

			*31(a) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Corporation.

			*31(b) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Corporation.

			*31(c) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Arkansas.

			*31(d) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Arkansas.

			*31(e) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Louisiana.

			*31(f) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Louisiana.

			*31(g) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Mississippi.

			*31(h) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Mississippi.

			*31(i) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy New Orleans.

			*31(j) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy New Orleans.

			*31(k) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Texas.

			*31(l) -			Rule 13a-14(a)/15d-14(a) Certification for Entergy Texas.

			*31(m) -			Rule 13a-14(a)/15d-14(a) Certification for System Energy.

			*31(n) -			Rule 13a-14(a)/15d-14(a) Certification for System Energy.

			**32(a) -			Section 1350 Certification for Entergy Corporation.

			**32(b) -			Section 1350 Certification for Entergy Corporation.

			**32(c) -			Section 1350 Certification for Entergy Arkansas.

			**32(d) -			Section 1350 Certification for Entergy Arkansas.

			**32(e) -			Section 1350 Certification for Entergy Louisiana.

~~159~~

~~Table of Contents~~


			**32(f) -			Section 1350 Certification for Entergy Louisiana.

			**32(g) -			Section 1350 Certification for Entergy Mississippi.

			**32(h) -			Section 1350 Certification for Entergy Mississippi.

			**32(i) -			Section 1350 Certification for Entergy New Orleans.

			**32(j) -			Section 1350 Certification for Entergy New Orleans.

			**32(k) -			Section 1350 Certification for Entergy Texas.

			**32(l) -			Section 1350 Certification for Entergy Texas.

			**32(m) -			Section 1350 Certification for System Energy.

			**32(n) -			Section 1350 Certification for System Energy.

			~~99(a) -~~			Equity Distribution Sales Agreement, dated January 11, 2021 by and among Entergy Corporation and BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Wells Fargo Securities, LLC, as sales agents and as forward sellers, and Bank of America, N.A., Citibank, N.A., JPMorgan Chase Bank, National Association, New York Branch, Mizuho Markets Americas LLC (with Mizuho Securities USA LLC acting as agent) and Wells Fargo Bank, National Association, as forward purchasers (1.01 to Form 8-K filed January 11, 2021 in 1-11299).

			~~99(b) -~~			~~Master Forward Confirmation, dated January 11, 2021, between Entergy Corporation and Bank of America, N.A. (99.01 to Form 8-K filed January 11, 2021 in 1-11299).~~

			~~99(c) -~~			~~Master Forward Confirmation, dated January 11, 2021, between Entergy Corporation and Citigroup Global Markets Inc. (99.02 to Form 8-K filed January 11, 2021 in 1-11299).~~

			~~99(d) -~~			~~Master Forward Confirmation, dated January 11, 2021, between Entergy Corporation and JPMorgan Chase Bank, National Association (99.03 to Form 8-K filed January 11, 2021 in 1-11299).~~

			~~99(e) -~~			Master Forward Confirmation, dated January 11, 2021, between Entergy Corporation and Mizuho Markets Americas LLC (with Mizuho Securities USA LLC acting as agent) (99.04 to Form 8-K filed January 11, 2021 in 1-11299).

			~~99(f) -~~			~~Master Forward Confirmation, dated January 11, 2021, between Entergy Corporation and Wells Fargo Bank, National Association (99.05 to Form 8-K filed January 11, 2021 in 1-11299).~~

			*101 INS -			Inline XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

			*101 SCH -			Inline XBRL Schema Document.

			*101 PRE -			Inline XBRL Presentation Linkbase Document.

			*101 LAB -			Inline XBRL Label Linkbase Document.

			*101 CAL -			Inline XBRL Calculation Linkbase Document.

			*101 DEF -			Inline XBRL Definition Linkbase Document.

154

Table of Contents



			*104 -			Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibits 101).

___________________________

Pursuant to Item 601(b)(4)(iii) of Regulation S-K, Entergy Corporation agrees to furnish to the Commission upon request any instrument with respect to long-term debt that is not registered or listed herein as an Exhibit because the total amount of securities authorized under such agreement does not exceed ten percent of the total assets of Entergy Corporation and its subsidiaries on a consolidated basis.


*			Filed herewith.
**			Furnished, not filed, herewith.

~~160~~

155

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. The signature for each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.


ENTERGY CORPORATION ENTERGY ARKANSAS, LLC ENTERGY LOUISIANA, LLC ENTERGY MISSISSIPPI, LLC ENTERGY NEW ORLEANS, LLC ENTERGY TEXAS, INC. SYSTEM ENERGY RESOURCES, INC.


/s/ Kimberly A. Fontan
Kimberly A. Fontan Senior Vice President and Chief Accounting Officer (For each Registrant and for each as Principal Accounting Officer)

Date: May ~~6, 2021~~5, 2022

~~161~~

156


Commission File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.	Commission File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.

1-11299	ENTERGY CORPORATION	1-35747	ENTERGY NEW ORLEANS, LLC
	(a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 576-4000		(a Texas limited liability company) 1600 Perdido Street New Orleans, Louisiana 70112 Telephone (504) 670-3700
	72-1229752		82-2212934


1-10764	ENTERGY ARKANSAS, LLC	1-34360	ENTERGY TEXAS, INC.
	(a Texas limited liability company) 425 West Capitol Avenue Little Rock, Arkansas 72201 Telephone (501) 377-4000		(a Texas corporation) ~~10055 Grogans Mill Road~~2107 Research Forest Drive The Woodlands, Texas 77380 Telephone (409) 981-2000
	83-1918668		61-1435798


1-32718	ENTERGY LOUISIANA, LLC	1-09067	SYSTEM ENERGY RESOURCES, INC.
	(a Texas limited liability company) 4809 Jefferson Highway Jefferson, Louisiana 70121 Telephone (504) 576-4000		(an Arkansas corporation) 1340 Echelon Parkway Jackson, Mississippi 39213 Telephone (601) 368-5000
	47-4469646		72-0752777


1-31508	ENTERGY MISSISSIPPI, LLC
	(a Texas limited liability company) 308 East Pearl Street Jackson, Mississippi 39201 Telephone (601) 368-5000
	83-1950019


Registrant	Title of Class	Trading Symbol	Name of Each Exchange on Which Registered

Entergy Corporation	Common Stock, $0.01 Par Value	ETR	New York Stock Exchange
	Common Stock, $0.01 Par Value	ETR	NYSE Chicago, Inc.

Entergy Arkansas, LLC	Mortgage Bonds, 4.875% Series due September 2066	EAI	New York Stock Exchange

Entergy Louisiana, LLC	Mortgage Bonds, 4.875% Series due September 2066	ELC	New York Stock Exchange

Entergy Mississippi, LLC	Mortgage Bonds, 4.90% Series due October 2066	EMP	New York Stock Exchange

Entergy New Orleans, LLC	Mortgage Bonds, 5.0% Series due December 2052	ENJ	New York Stock Exchange
	Mortgage Bonds, 5.50% Series due April 2066	ENO	New York Stock Exchange

Entergy Texas, Inc.	5.375% Series A Preferred Stock, Cumulative, No Par Value (Liquidation Value $25 Per Share)	ETI/PR	New York Stock Exchange


Common Stock Outstanding		Outstanding at April ~~30, 2021~~29, 2022
Entergy Corporation	($0.01 par value)	~~200,659,948~~203,374,308


			Page Number

Forward-looking Information			iii
Definitions			vi

Part I. Financial Information

Entergy Corporation and Subsidiaries
Management’s Financial Discussion and Analysis			1
Consolidated Income Statements			1615
Consolidated Statements of Comprehensive Income			17
Consolidated Statements of Cash Flows			18
Consolidated Balance Sheets			20
Consolidated Statements of Changes in Equity			22
Notes to Financial Statements
Note 1. Commitments and Contingencies			23
Note 2. Rate and Regulatory Matters			24
Note 3. Equity			3332
Note 4. Revolving Credit Facilities, Lines of Credit, Short-term Borrowings, and Long-term Debt			36
Note 5. Stock-based Compensation			41
Note 6. Retirement and Other Postretirement Benefits			4243
Note 7. Business Segment Information			46
Note 8. Risk Management and Fair Values			4748
Note 9. Decommissioning Trust Funds			6564
Note 10. Income Taxes			70
Note 11. Property, Plant, and Equipment			7170
Note 12. Variable Interest Entities			71
Note 13. Revenue			72

Item 3. Quantitative and Qualitative Disclosures About Market Risk			75
Item 4. Controls and Procedures			75
Entergy Arkansas, LLC and Subsidiaries
Management’s Financial Discussion and Analysis			76
Consolidated Income Statements			83
Consolidated Statements of Cash Flows			85
Consolidated Balance Sheets			86
Consolidated Statements of Changes in Member’s Equity			88
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis			89
Consolidated Income Statements			9997


			Page Number

Consolidated Statements of Comprehensive Income			~~100~~98
Consolidated Statements of Cash Flows			~~101~~99
Consolidated Balance Sheets			~~102~~100
Consolidated Statements of Changes in Equity			~~104~~102
Entergy Mississippi, LLC
Management’s Financial Discussion and Analysis			~~105~~103
Income Statements			~~111~~109
Statements of Cash Flows			~~113~~111
Balance Sheets			~~114~~112
Statements of Changes in Member’s Equity			~~116~~114
Entergy New Orleans, LLC and Subsidiaries
Management’s Financial Discussion and Analysis			~~117~~115
Consolidated Income Statements			~~123~~121
Consolidated Statements of Cash Flows			~~125~~123
Consolidated Balance Sheets			~~126~~124
Consolidated Statements of Changes in Member’s Equity			~~128~~126
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis			~~129~~127
Consolidated Income Statements			~~137~~134
Consolidated Statements of Cash Flows			~~139~~135
Consolidated Balance Sheets			~~140~~136
Consolidated Statements of Changes in Equity			~~142~~138
System Energy Resources, Inc.
Management’s Financial Discussion and Analysis			~~143~~139
Income Statements			~~149~~146
Statements of Cash Flows			~~151~~147
Balance Sheets			~~152~~148
Statements of Changes in Common Equity			~~154~~150

Part II. Other Information

Item 1. Legal Proceedings			~~155~~151
Item 1A. Risk Factors			~~155~~151
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			~~155~~152
Item 5. Other Information			~~156~~152
Item 6. Exhibits			~~158~~154
Signature			~~161~~156


(Mark One)
☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

			For the transition period from ____________ to ____________


Abbreviation or Acronym			Term

ALJ			Administrative Law Judge
ANO 1 and 2			Units 1 and 2 of Arkansas Nuclear One (nuclear), owned by Entergy Arkansas
APSC			Arkansas Public Service Commission
ASU			Accounting Standards Update issued by the FASB
Board			Board of Directors of Entergy Corporation
Cajun			Cajun Electric Power Cooperative, Inc.
capacity factor			Actual plant output divided by maximum potential plant output for the period
City Council			Council of the City of New Orleans, Louisiana
COVID-19			The novel coronavirus disease declared a pandemic by the World Health Organization and the Centers for Disease Control and Prevention in March 2020
D.C. Circuit			U.S. Court of Appeals for the District of Columbia Circuit
DOE			United States Department of Energy
Entergy			Entergy Corporation and its direct and indirect subsidiaries
Entergy Corporation			Entergy Corporation, a Delaware corporation
Entergy Gulf States, Inc.			Predecessor company for financial reporting purposes to Entergy Gulf States Louisiana that included the assets and business operations of both Entergy Gulf States Louisiana and Entergy Texas
Entergy Gulf States Louisiana			Entergy Gulf States Louisiana, L.L.C., a Louisiana limited liability company formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. and the successor company to Entergy Gulf States, Inc. for financial reporting purposes. The term is also used to refer to the Louisiana jurisdictional business of Entergy Gulf States, Inc., as the context requires. Effective October 1, 2015, the business of Entergy Gulf States Louisiana was combined with Entergy Louisiana.
Entergy Louisiana			Entergy Louisiana, LLC, a Texas limited liability company formally created as part of the combination of Entergy Gulf States Louisiana and the company formerly known as Entergy Louisiana, LLC (Old Entergy Louisiana) into a single public utility company and the successor to Old Entergy Louisiana for financial reporting purposes.
Entergy Texas			Entergy Texas, Inc., a Texas corporation formally created as part of the jurisdictional separation of Entergy Gulf States, Inc. The term is also used to refer to the Texas jurisdictional business of Entergy Gulf States, Inc., as the context requires.
Entergy Wholesale Commodities			Entergy’s non-utility business segment primarily comprised of the ownership, operation, and decommissioning of nuclear power plants, the ownership of interests in non-nuclear power plants, and the sale of the electric power produced by its operating power plants to wholesale customers
EPA			United States Environmental Protection Agency
FASB			Financial Accounting Standards Board
FERC			Federal Energy Regulatory Commission
Form 10-K			Annual Report on Form 10-K for the calendar year ended December 31, ~~2020~~2021 filed with the SEC by Entergy Corporation and its Registrant Subsidiaries
Grand Gulf			Unit No. 1 of Grand Gulf Nuclear Station (nuclear), 90% owned or leased by System Energy
GWh			Gigawatt-hour(s), which equals one million kilowatt-hours
~~Independence~~HLBV			~~Independence Steam Electric Station (coal), owned 16% by Entergy Arkansas, 25% by Entergy Mississippi, and 7% by Entergy Power, LLC~~Hypothetical liquidation at book value


Abbreviation or Acronym			Term

Independence			Independence Steam Electric Station (coal), owned 16% by Entergy Arkansas, 25% by Entergy Mississippi, and 7% by Entergy Power, LLC
Indian Point 2			Unit 2 of Indian Point Energy Center (nuclear), previously owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment, which ceased power production in April 2020 and was sold in May 2021
Indian Point 3			Unit 3 of Indian Point Energy Center (nuclear), previously owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment, which ceased power production in April 2021 and was sold in May 2021
IRS			Internal Revenue Service
ISO			Independent System Operator
kW			Kilowatt, which equals one thousand watts
kWh			Kilowatt-hour(s)
LPSC			Louisiana Public Service Commission
MISO			Midcontinent Independent System Operator, Inc., a regional transmission organization
MMBtu			One million British Thermal Units
MPSC			Mississippi Public Service Commission
MW			Megawatt(s), which equals one thousand kilowatts
MWh			Megawatt-hour(s), which equals one thousand kilowatts
Nelson Unit 6			Unit No. 6 (coal) of the Nelson Steam Electric Generating Station, 70% of which is co-owned by Entergy Louisiana (57.5%) and Entergy Texas (42.5%) and 10.9% of which is owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
Net debt to net capital ratio			Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents
~~Net MW in operation~~			~~Installed capacity owned and operated~~
NRC			Nuclear Regulatory Commission
Palisades			Palisades Nuclear Plant (nuclear), owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment
Parent & Other			The portions of Entergy not included in the Utility or Entergy Wholesale Commodities segments, primarily consisting of the activities of the parent company, Entergy Corporation
~~Pilgrim~~			Pilgrim Nuclear Power Station (nuclear), previously owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment, which ceased power production in May 2019 and was sold in August 2019
PPA			Purchased power agreement or power purchase agreement
PUCT			Public Utility Commission of Texas
Registrant Subsidiaries			Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., and System Energy Resources, Inc.
River Bend			River Bend Station (nuclear), owned by Entergy Louisiana
SEC			Securities and Exchange Commission
System Agreement			Agreement, effective January 1, 1983, as modified, among the Utility operating companies relating to the sharing of generating capacity and other power resources. The agreement terminated effective August 2016.
System Energy			System Energy Resources, Inc.
TWh			Terawatt-hour(s), which equals one billion kilowatt-hours


Abbreviation or Acronym			Term

Unit Power Sales Agreement			Agreement, dated as of June 10, 1982, as amended and approved by the FERC, among Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy, relating to the sale of capacity and energy from System Energy’s share of Grand Gulf
Utility			Entergy’s business segment that generates, transmits, distributes, and sells electric power, with a small amount of natural gas distribution
Utility operating companies			Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas
Vermont Yankee			Vermont Yankee Nuclear Power Station (nuclear), previously owned by an Entergy subsidiary in the Entergy Wholesale Commodities business segment, which ceased power production in December 2014 and was disposed of in January 2019
Waterford 3			Unit No. 3 (nuclear) of the Waterford Steam Electric Station, owned by Entergy Louisiana
weather-adjusted usage			Electric usage excluding the effects of deviations from normal weather
White Bluff			White Bluff Steam Electric Generating Station, 57% owned by Entergy Arkansas


		Utility	Entergy Wholesale Commodities	Parent & Other (a)	Entergy		Utility	Entergy Wholesale Commodities	Parent & Other (a)	Entergy
		(In Thousands)					(In Thousands)
2020 Net Income (Loss) Attributable to Entergy Corporation		$319,816	($110,975)	($90,127)	$118,714
2021 Net Income (Loss) Attributable to Entergy Corporation						2021 Net Income (Loss) Attributable to Entergy Corporation	$356,567	$37,577	($59,579)	$334,565

Operating revenues	Operating revenues	501,987	(84,330)	2	417,659	Operating revenues	131,540	(98,442)	(11)	33,087
Fuel, fuel-related expenses, and gas purchased for resale	Fuel, fuel-related expenses, and gas purchased for resale	102,680	1,094	(10)	103,764	Fuel, fuel-related expenses, and gas purchased for resale	160,924	4,836	11	165,771
Purchased power	Purchased power	155,967	7,143	10	163,120	Purchased power	(105,937)	(4,160)	(11)	(110,108)
Other regulatory charges (credits) - net	Other regulatory charges (credits) - net	39,958	—	—	39,958	Other regulatory charges (credits) - net	(60,704)	—	—	(60,704)
Other operation and maintenance	Other operation and maintenance	36,589	(32,049)	162	4,702	Other operation and maintenance	26,207	(57,721)	3,540	(27,974)
Asset write-offs, impairments, and related charges	Asset write-offs, impairments, and related charges	—	(1,822)	—	(1,822)	Asset write-offs, impairments, and related charges	—	(2,529)	—	(2,529)
Taxes other than income taxes	Taxes other than income taxes	(255)	(13,641)	304	(13,592)	Taxes other than income taxes	20,344	3,069	33	23,446
Depreciation and amortization	Depreciation and amortization	37,052	(22,148)	(95)	14,809	Depreciation and amortization	29,121	(4,219)	(449)	24,453

Other income (deductions)	Other income (deductions)	30,046	218,171	6,257	254,474	Other income (deductions)	(46,264)	(47,309)	(1,834)	(95,407)
Interest expense	Interest expense	13,847	(1,106)	(3,013)	9,728	Interest expense	15,442	(3,027)	9,238	21,653
Other expenses	Other expenses	(3,239)	1,718	—	(1,521)	Other expenses	1,698	(39,029)	—	(37,331)
Income taxes	Income taxes	112,683	46,100	(21,647)	137,136	Income taxes	15,625	(12,706)	(2,364)	555
Preferred dividend requirements of subsidiaries and noncontrolling interest						Preferred dividend requirements of subsidiaries and noncontrolling interest	(1,339)	—	(48)	(1,387)

2021 Net Income (Loss) Attributable to Entergy Corporation		$356,567	$37,577	($59,579)	$334,565
2022 Net Income (Loss) Attributable to Entergy Corporation						2022 Net Income (Loss) Attributable to Entergy Corporation	$340,462	$7,312	($71,374)	$276,400


	2021	2020
Owned capacity (MW) (a)	2,246	3,274
GWh billed	4,413	6,757

Entergy Wholesale Commodities Nuclear Fleet
Capacity factor	99%	99%
GWh billed	3,988	6,259
Average energy price ($/MWh)	$51.86	$47.42
Average capacity price ($/kW-month)	$0.23	$1.07


Capacity	Borrowings	Letters of Credit	Capacity Available
(In Millions)
$3,500	$55	$6	$3,439










Balance at December 31, 2020	$35,000	$2,700	($5,074,456)	$6,549,923	$9,897,182	($449,207)	$10,961,142



Consolidated net income (a)	4,580	—	—	—	334,565	—	339,145
Other comprehensive loss	—	—	—	—	—	(51,300)	(51,300)
Common stock issuances related to stock plans	—	—	28,235	(29,871)	—	—	(1,636)
Common stock dividends declared	—	—	—	—	(190,595)	—	(190,595)
Preferred dividend requirements of subsidiaries (a)	(4,580)	—	—	—	—	—	(4,580)
Balance at March 31, 2021	$35,000	$2,700	($5,046,221)	$6,520,052	$10,041,152	($500,507)	$11,052,176


Balance at December 31, 2021	$68,110	$2,720	($5,039,699)	$6,766,239	$10,240,552	($332,528)	$11,705,394

Consolidated net income (a)	3,193	—	—	—	276,400	—	279,593
Other comprehensive loss	—	—	—	—	—	(4,050)	(4,050)
Common stock issuances related to stock plans	—	—	36,612	(31,085)	—	—	5,527
Common stock dividends declared	—	—	—	—	(205,058)	—	(205,058)
Preferred dividend requirements of subsidiaries (a)	(4,580)	—	—	—	—	—	(4,580)
Balance at March 31, 2022	$66,723	$2,720	($5,003,087)	$6,735,154	$10,311,894	($336,578)	$11,776,826

See Notes to Financial Statements.

(a) Consolidated net income and preferred dividend requirements of subsidiaries for first quarter 2022 and first quarter 2021 each includes $4 million of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented as equity.


	2021	2022
Energy
Percent of planned generation under contract (a):
Unit-contingent (b)	98%	99%
Planned generation (TWh) (c) (d)	5.8	2.8
Average revenue per MWh on contracted volumes:
Expected based on market prices as of March 31, 2021	$56.4	$47.1

Capacity
Percent of capacity sold forward (e):
Bundled capacity and energy contracts (f)	86%	98%
Capacity contracts (g)	13%	—%
Total	99%	98%
Planned net MW in operation (average) (d)	1,158	338
Average revenue under contract per kW per month (applies to capacity contracts only)	$0.1	$—

Total Energy and Capacity Revenues (h)
Expected sold and market total revenue per MWh	$55.8	$46.8
Sensitivity: -/+ $10 per MWh market price change	$55.7-$56.0	$46.7-$47.0


ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Three Months Ended March 31, 2021 and 2020
(Unaudited)

		Common Shareholders’ Equity
	Subsidiaries’ Preferred Stock	Common Stock	Treasury Stock	Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
	(In Thousands)
Balance at December 31, 2019	$35,000	$2,700	($5,154,150)	$6,564,436	$9,257,609	($446,920)	$10,258,675
Implementation of accounting standards	0	0	0	0	(419)	0	(419)
Balance at January 1, 2020	35,000	2,700	(5,154,150)	6,564,436	9,257,190	(446,920)	10,258,256

Consolidated net income (a)	4,580	0	0	0	118,714	0	123,294
Other comprehensive income	0	0	0	0	0	47,933	47,933
Common stock issuances related to stock plans	0	0	73,580	(53,753)	0	0	19,827
Common stock dividends declared	0	0	0	0	(185,763)	0	(185,763)
Preferred dividend requirements of subsidiaries (a)	(4,580)	0	0	0	0	0	(4,580)
Balance at March 31, 2020	$35,000	$2,700	($5,080,570)	$6,510,683	$9,190,141	($398,987)	$10,258,967


		Amounts reclassified from AOCI		Income Statement Location		Amounts reclassified from AOCI		Income Statement Location
		2021	2020			2022	2021
		(In Thousands)				(In Thousands)
Cash flow hedges net unrealized gain (loss)	Cash flow hedges net unrealized gain (loss)				Cash flow hedges net unrealized gain (loss)
Power contracts	Power contracts	$39,367	$94,423	Competitive business operating revenues	Power contracts	$—	$39,367	Competitive business operating revenues
Interest rate swaps	Interest rate swaps	(48)	(48)	Miscellaneous - net	Interest rate swaps	(48)	(48)	Miscellaneous - net
Total realized gain (loss) on cash flow hedges	Total realized gain (loss) on cash flow hedges	39,319	94,375		Total realized gain (loss) on cash flow hedges	(48)	39,319
Income taxes	Income taxes	(8,257)	(19,819)	Income taxes	Income taxes	10	(8,257)	Income taxes
Total realized gain (loss) on cash flow hedges (net of tax)	Total realized gain (loss) on cash flow hedges (net of tax)	$31,062	$74,556		Total realized gain (loss) on cash flow hedges (net of tax)	($38)	$31,062

Pension and other postretirement liabilities	Pension and other postretirement liabilities				Pension and other postretirement liabilities
Amortization of prior-service credit	Amortization of prior-service credit	$5,248	$3,719	(a)	Amortization of prior-service credit	$3,837	$5,248	(a)
Amortization of loss	Amortization of loss	(34,529)	(27,318)	(a)	Amortization of loss	(13,925)	(34,529)	(a)

Settlement loss					Settlement loss	(782)	—	(a)
Total amortization	Total amortization	(29,281)	(23,599)		Total amortization	(10,870)	(29,281)
Income taxes	Income taxes	6,314	4,049	Income taxes	Income taxes	2,542	6,314	Income taxes
Total amortization (net of tax)	Total amortization (net of tax)	($22,967)	($19,550)		Total amortization (net of tax)	($8,328)	($22,967)

Net unrealized investment gain (loss)	Net unrealized investment gain (loss)				Net unrealized investment gain (loss)
Realized gain (loss)	Realized gain (loss)	($972)	$3,116	Interest and investment income	Realized gain (loss)	($5,495)	($972)	Interest and investment income
Income taxes	Income taxes	358	(1,147)	Income taxes	Income taxes	2,022	358	Income taxes
Total realized investment gain (loss) (net of tax)	Total realized investment gain (loss) (net of tax)	($614)	$1,969		Total realized investment gain (loss) (net of tax)	($3,473)	($614)

Total reclassifications for the period (net of tax)	Total reclassifications for the period (net of tax)	$7,481	$56,975		Total reclassifications for the period (net of tax)	($11,839)	$7,481


Company	Expiration Date	Amount of Facility	Interest Rate (a)	Amount Drawn as of March 31, 2021	Letters of Credit Outstanding as of March 31, 2021
Entergy Arkansas	April 2022	$25 million (b)	2.75%	$0	$0
Entergy Arkansas	September 2024	$150 million (c)	1.21%	$0	$0
Entergy Louisiana	September 2024	$350 million (c)	1.21%	$0	$0
Entergy Mississippi	April 2022	$37.5 million (d)	1.58%	$0	$0
Entergy Mississippi	April 2022	$35 million (d)	1.58%	$0	$0
Entergy Mississippi	April 2022	$10 million (d)	1.58%	$0	$0
Entergy New Orleans	November 2021	$25 million (c)	1.36%	$0	$0
Entergy Texas	September 2024	$150 million (c)	1.58%	$0	$1.3 million


		Authorized	Borrowings		Authorized	Borrowings
		(In Millions)			(In Millions)
Entergy Arkansas	Entergy Arkansas	$250	$0	Entergy Arkansas	$250	$—
Entergy Louisiana	Entergy Louisiana	$450	$0	Entergy Louisiana	$450	$—
Entergy Mississippi	Entergy Mississippi	$175	$0	Entergy Mississippi	$200	$22
Entergy New Orleans	Entergy New Orleans	$150	$25	Entergy New Orleans	$150	$—
Entergy Texas	Entergy Texas	$200	$31	Entergy Texas	$200	$171
System Energy	System Energy	$200	$0	System Energy	$200	$—


			Amount
			(In Thousands)
Senior Secured Restoration Bonds:
Tranche A-1 (3.051%) due December 2028			$100,000
Tranche A-2 (3.697%) due December 2036			190,850
Total senior secured restoration bonds			$290,850


		Book Value of Long-Term Debt	Fair Value of Long-Term Debt (a)		Book Value of Long-Term Debt	Fair Value of Long-Term Debt (a)
		(In Thousands)			(In Thousands)
Entergy	Entergy	$24,704,475	$25,716,967	Entergy	$27,215,784	$26,731,277
Entergy Arkansas	Entergy Arkansas	$3,958,751	$4,126,514	Entergy Arkansas	$4,163,602	$4,101,516
Entergy Louisiana	Entergy Louisiana	$10,059,885	$10,681,713	Entergy Louisiana	$12,022,131	$11,959,123
Entergy Mississippi	Entergy Mississippi	$1,981,429	$2,084,891	Entergy Mississippi	$2,180,197	$2,152,275
Entergy New Orleans	Entergy New Orleans	$642,412	$584,475	Entergy New Orleans	$788,501	$775,566
Entergy Texas	Entergy Texas	$2,465,827	$2,545,973	Entergy Texas	$2,325,371	$2,254,487
System Energy	System Energy	$768,969	$785,758	System Energy	$805,353	$769,552


2021	Entergy Arkansas	Entergy Louisiana	Entergy Mississippi	Entergy New Orleans	Entergy Texas	System Energy
	(In Thousands)
Service cost - benefits earned during the period	$7,418	$10,043	$2,364	$796	$1,801	$2,314
Interest cost on projected benefit obligation	8,341	9,562	2,462	1,029	1,949	2,142
Expected return on assets	(19,670)	(22,538)	(5,587)	(2,622)	(5,237)	(4,778)

Amortization of net loss	19,303	19,204	5,668	2,270	3,711	5,326

Net pension cost	$15,392	$16,271	$4,907	$1,473	$2,224	$5,004


2021		Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
2022						2022	Qualified Pension Costs	Other Postretirement Costs	Non-Qualified Pension Costs	Total
		(In Thousands)					(In Thousands)
Entergy	Entergy					Entergy
Amortization of prior service (cost) credit	Amortization of prior service (cost) credit	$0	$5,288	($40)	$5,248	Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	Amortization of net loss	(33,439)	(495)	(595)	(34,529)	Amortization of net loss	(12,910)	(596)	(419)	(13,925)

Settlement loss						Settlement loss	—	—	(782)	(782)
		($33,439)	$4,793	($635)	($29,281)		($12,910)	$3,418	($1,378)	($10,870)
Entergy Louisiana	Entergy Louisiana					Entergy Louisiana
Amortization of prior service credit	Amortization of prior service credit	$0	$1,230	$0	$1,230	Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	Amortization of net gain (loss)	(769)	91	(1)	(679)	Amortization of net gain (loss)	(504)	186	(1)	(319)

		($769)	$1,321	($1)	$551		($504)	$1,344	($1)	$839


		Utility	Entergy Wholesale Commodities	All Other	Eliminations	Consolidated		Utility	Entergy Wholesale Commodities	All Other	Eliminations	Consolidated
		(In Thousands)						(In Thousands)
2022							2022
Operating revenues							Operating revenues	$2,728,156	$149,777	$—	($8)	$2,877,925
Income taxes							Income taxes	$75,359	$2,854	($11,716)	$—	$66,497
Consolidated net income (loss)							Consolidated net income (loss)	$343,156	$7,859	($39,476)	($31,946)	$279,593
Total assets as of March 31, 2022							Total assets as of March 31, 2022	$61,684,609	$1,137,843	$601,479	($3,590,405)	$59,833,526
2021	2021						2021
Operating revenues	Operating revenues	$2,596,616	$248,219	$23	($20)	$2,844,838	Operating revenues	$2,596,616	$248,219	$23	($20)	$2,844,838
Income taxes	Income taxes	$59,734	$15,560	($9,352)	$0	$65,942	Income taxes	$59,734	$15,560	($9,352)	$—	$65,942
Consolidated net income (loss)	Consolidated net income (loss)	$360,600	$38,124	($27,680)	($31,899)	$339,145	Consolidated net income (loss)	$360,600	$38,124	($27,680)	($31,899)	$339,145
Total assets as of March 31, 2021		$56,086,185	$3,793,754	$867,301	($2,079,612)	$58,667,628
2020
Operating revenues		$2,094,629	$332,549	$11	($10)	$2,427,179
Income taxes		($52,949)	($30,540)	$12,295	$0	($71,194)
Consolidated net income (loss)		$323,849	($110,428)	($58,228)	($31,899)	$123,294
Total assets as of December 31, 2020		$55,940,153	$3,800,378	$552,632	($2,053,951)	$58,239,212
Total assets as of December 31, 2021							Total assets as of December 31, 2021	$59,733,625	$1,242,675	$561,168	($2,083,226)	$59,454,242


Instrument	Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant	Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant
			(In Millions)						(In Millions)
Assets:	Assets:						Assets:
Natural gas swaps and options	Natural gas swaps and options	Prepayments and other	$0.8	$0	$0.8	Entergy Louisiana	Natural gas swaps and options	Prepayments and other	$5.7	$—	$5.7	Entergy Louisiana
Natural gas swaps and options	Natural gas swaps and options	Other deferred debits and other assets	$0.5	$0	$0.5	Entergy Louisiana	Natural gas swaps and options	Other deferred debits and other assets	$5.3	$—	$5.3	Entergy Louisiana

Financial transmission rights	Financial transmission rights	Prepayments and other	$2.9	($0.2)	$2.7	Entergy Arkansas	Financial transmission rights	Prepayments and other	$2.3	$—	$2.3	Entergy Arkansas
Financial transmission rights	Financial transmission rights	Prepayments and other	$4.3	($0.1)	$4.2	Entergy Louisiana	Financial transmission rights	Prepayments and other	$0.6	$—	$0.6	Entergy Louisiana
Financial transmission rights	Financial transmission rights	Prepayments and other	$0.6	$0	$0.6	Entergy Mississippi	Financial transmission rights	Prepayments and other	$0.3	$—	$0.3	Entergy Mississippi
Financial transmission rights	Financial transmission rights	Prepayments and other	$0.2	($0.1)	$0.1	Entergy New Orleans	Financial transmission rights	Prepayments and other	$0.1	$—	$0.1	Entergy New Orleans
Financial transmission rights	Financial transmission rights	Prepayments and other	$1.6	$0	$1.6	Entergy Texas	Financial transmission rights	Prepayments and other	$0.8	$—	$0.8	Entergy Texas

Liabilities:	Liabilities:						Liabilities:

Natural gas swaps and options		Other current liabilities	$0.3	$0	$0.3	Entergy Louisiana
Natural gas swaps and options		Other non-current liabilities	$1.3	$0	$1.3	Entergy Louisiana

Natural gas swaps	Natural gas swaps	Other current liabilities	$5.0	$0	$5.0	Entergy Mississippi	Natural gas swaps	Other current liabilities	$6.7	$—	$6.7	Entergy Mississippi
Natural gas swaps	Natural gas swaps	Other current liabilities	$0.3	$0	$0.3	Entergy New Orleans	Natural gas swaps	Other current liabilities	$0.5	$—	$0.5	Entergy New Orleans


2021		Level 1	Level 2	Level 3	Total
2022						2022	Level 1	Level 2	Level 3	Total
		(In Millions)					(In Millions)
Assets:	Assets:					Assets:
Temporary cash investments	Temporary cash investments	$1,675	$0	$0	$1,675	Temporary cash investments	$625	$—	$—	$625

Decommissioning trust funds (a):	Decommissioning trust funds (a):					Decommissioning trust funds (a):
Equity securities	Equity securities	807	0	0	807	Equity securities	103	—	—	103
Debt securities (b)	Debt securities (b)	1,489	1,947	0	3,436	Debt securities (b)	736	1,334	—	2,070
Common trusts (c)	Common trusts (c)				3,102	Common trusts (c)				3,040

Securitization recovery trust account	Securitization recovery trust account	44	0	0	44	Securitization recovery trust account	15	—	—	15
Escrow accounts	Escrow accounts	103	0	0	103	Escrow accounts	49	—	—	49
Gas hedge contracts	Gas hedge contracts	1	0	0	1	Gas hedge contracts	54	8	—	62
Financial transmission rights	Financial transmission rights	0	0	4	4	Financial transmission rights	—	—	1	1
		$4,119	$1,947	$4	$9,172		$1,582	$1,342	$1	$5,965

Liabilities:

Gas hedge contracts		$2	$1	$0	$3


	Fair Value	Total Unrealized Gains	Total Unrealized Losses
	(In Millions)
2021
Debt Securities	$3,436	$102	$43

2020
Debt Securities	$2,617	$197	$3


	March 31, 2022		December 31, 2021
	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
	(In Millions)
Less than 12 months	$332.9	$21.3	$183.8	$2.9
More than 12 months	55.8	7.0	39.5	1.8
Total	$388.7	$28.3	$223.3	$4.7


	Three Months Ended March 31,
	2021	2020
	(In Millions)
Entergy	$41	$30
Entergy Arkansas	$8	$13
Entergy Louisiana	$8	$8

Entergy New Orleans	$0	$3
Entergy Texas	$7	$6
System Entergy	$18	$0


March 31, 2021	December 31, 2020	March 31, 2020	December 31, 2019
(In Thousands)
$15,610	$3,110	$24,935	($21,634)


~~ENTERGY ARKANSAS, LLC AND SUBSIDIARIES~~
~~CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY~~
~~For the Three Months Ended March 31, 2021 and 2020~~
~~(Unaudited)~~


						~~Member's Equity~~
						~~(In Thousands)~~

~~Balance at December 31, 2019~~						~~$3,125,937~~

~~Net income~~						~~44,595~~




~~Balance at March 31, 2020~~						~~$3,170,532~~
















~~Balance at December 31, 2020~~						~~$3,276,169~~

~~Net income~~						~~93,037~~






~~Balance at March 31, 2021~~						~~$3,369,206~~



















~~See Notes to Financial Statements.~~


ENTERGY MISSISSIPPI, LLC
STATEMENTS OF CHANGES IN MEMBER'S EQUITY
For the Three Months Ended March 31, ~~2021~~2022 and ~~2020~~2021
(Unaudited)


						Member's Equity
						(In Thousands)

~~Balance at December 31, 2019~~						~~$1,542,151~~

~~Net income~~						~~22,526~~
~~Common equity distributions~~						~~(2,500)~~
~~Balance at March 31, 2020~~						~~$1,562,177~~










Balance at December 31, 2020						$1,672,734

Net income						25,972

Balance at March 31, 2021						$1,698,706










Balance at December 31, 2021						$1,839,568

Net income						30,355

Balance at March 31, 2022						$1,869,923









See Notes to Financial Statements.


Period	Total Number of Shares Purchased	Average Price Paid per Share	Total Number of Shares Purchased as Part of a Publicly Announced Plan	Maximum $ Amount of Shares that May Yet be Purchased Under a Plan (b)

1/01/~~2021-1/~~2022-1/31/~~2021~~2022	—	$—	—	$350,052,918
2/01/~~2021-2/~~2022-2/28/~~2021~~2022	—	$—	—	$350,052,918
3/01/~~2021-3/~~2022-3/31/~~2021~~2022	—	$—	—	$350,052,918
Total	—	$—	—