Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Securities Exchange Act of 1934.

Entergy Corporation, Entergy Arkansas, LLC, Entergy Louisiana, LLC, Entergy Mississippi, LLC, Entergy New Orleans, LLC, Entergy Texas, Inc., and System Energy Resources, Inc. separately file this combined Quarterly Report on Form 10-Q.  Information contained herein relating to any individual company is filed by such company on its own behalf.  Each company reports herein only as to itself and makes no other representations whatsoever as to any other company.  This combined Quarterly Report on Form 10-Q supplements and updates the Annual Report on Form 10-K for the calendar year ended December 31, 20202021 and the Quarterly Reports on Form 10-Q for the quarters ended March 31, 20212022 and June 30, 2021,2022, filed by the individual registrants with the SEC, and should be read in conjunction therewith.

In this combined report and from time to time, Entergy Corporation and the Registrant Subsidiaries each makes statements as a registrant concerning its expectations, beliefs, plans, objectives, goals, projections, strategies, and future events or performance.  Such statements are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “intend,” “expect,” “estimate,” “continue,” “potential,” “plan,” “predict,” “forecast,” and other similar words or expressions are intended to identify forward-looking statements but are not the only means to identify these statements.  Although each of these registrants believes that these forward-looking statements and the underlying assumptions are reasonable, it cannot provide assurance that they will prove correct.  Any forward-looking statement is based on information current as of the date of this combined report and speaks only as of the date on which such statement is made.  Except to the extent required by the federal securities laws, these registrants undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Forward-looking statements involve a number of risks and uncertainties.  There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed or incorporated by reference in (a) Item 1A. Risk Factors in the Form 10-K and in this report, (b) those factors discussed or incorporated by reference in Management’s Financial Discussion and Analysis in the Form 10-K and in this report, and (c) the following factors (in addition to others described elsewhere in this combined report and in subsequent securities filings):

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

Following are income statement variances for Utility, Entergy Wholesale Commodities, Parent & Other, and Entergy comparing the third quarter 20212022 to the third quarter 20202021 showing how much the line item increased or (decreased) in comparison to the prior period:

Utility

Following is an analysis of the change in operating revenues comparing the nine months ended September 30, 2021third quarter 2022 to the nine months ended September 30, 2020:

The Utility operating companies’ 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 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:

Total electric energy sales for Utility for the three months ended September 30, 2022 and 2021 are as follows:

Following are key performance measures for Entergy Wholesale Commodities for the third quarters 2022 and July2021:

See Note 2 to the financial statements herein and in the Form 10-K for further discussion of the regulatory proceedings discussed above.

The return of unprotected excess accumulated deferred income taxes to customers resulted from activity at the Utility operating companies in response to the enactment of the Tax Cuts and Jobs Act. The return of unprotected excess accumulated deferred income taxes began in the second quarter 2018. In the nine months ended September 30, 2021, $712022, $50 million was returned to customers through reductions in operating revenues as compared to $55$71 million in the nine months ended September 30, 2020.2021. There is no effect on net income as the reductions in operating revenues were offset by reductions in income tax expense. See Note 2 to the financial statements in the Form 10-K for further discussion of regulatory activity regarding the Tax Cuts and Jobs Act.

Total electric energy sales for Utility for the nine months ended September 30,2021 2022 and 20202021 are as follows:

See Note 13 to the financial statements herein for additional discussion of operating revenues.

Entergy Wholesale Commodities

Operating revenues for Entergy Wholesale Commodities decreased from $746 million for the nine months ended September 30, 2020 to $559 million for the nine months ended September 30, 2021 to $301 million for the nine months ended September 30, 2022 primarily due to the shutdown of Indian Point 2 in April 2020 and the shutdown of Indian Point 3 in April 2021.

Depreciation and amortization expenses increased primarily due to additions to plant in service, including the Lake Charles Power Station and the Montgomery County Power Station.service.

Other regulatory charges (credits) - net includes:

In addition, Entergy records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation relatedobligation-related costs collected in revenue. Entergy Arkansas recorded regulatory charges in the third quarter 2021 as a result of portfolio rebalancing for the ANO 1 and ANO 2 decommissioning trust funds.

Other income increaseddecreased primarily due to to:

See Note 2 to the Montgomery County Power Station project.financial statements herein for discussion of the securitization.

Interest expense increased primarily due to:

The increase was partially offset by the repayment by Entergy Arkansas of $350 million of 3.75% Series mortgage bonds in February 2021 and the repayment by Entergy Louisiana of $200 million of 4.8% Series mortgage bonds in May 2021.

Entergy Wholesale Commodities

Depreciation and amortization expenses decreased primarily due to:

Other income decreased primarily due to lower gains on decommissioning trust fund investments including the absence of earnings from the nuclear decommissioning trust funds that were transferred in the sale of the Indian Point Energy Center in May 2021. The decrease was2021 and the sale of Palisades in June 2022, partially offset by lower non-service pension costs. See Notes 8 and 9 to the financial statements herein for a discussion of decommissioning trust fund investments. See Note 14 to the financial statements hereinin the Form 10-K for further discussion of the sale of the Indian Point Energy Center. See Note 14 to the financial statements herein for discussion of the sale of Palisades. See Note 6 to the financial statements herein and Note 11 to the financial statements in the Form 10-K for furthera discussion of pension and other postretirement benefits costs.

Other expenses decreased primarily due to the absence of decommissioning expense from Indian Point 2 and Indian Point 3, after the sale of the Indian Point Energy Center in May 2021.2021, and from Palisades, after the sale of Palisades in June 2022. See Note 14 to the financial statements in the Form 10-K for discussion of the sale of the Indian Point Energy Center. See Note 14 to the financial statements herein for further discussion of the sale of Palisades.

Other income decreased primarily due to the Indian Point Energy Center.elimination for consolidation purposes of intercompany dividend income, as discussed above.

The effective income tax rate was 19.1% for the nine months ended September 30, 2021. The difference in the effective income tax rate for the nine months ended September 30, 2021 versus the federal statutory rate of 21%

The Inflation Reduction Act of 2022, signed into law on August 16, 2022, significantly expanded federal tax incentives for clean energy production, including the extension of production tax credits to solar projects and certain qualified nuclear power plants. Additionally, the Inflation Reduction Act of 2022 enacted a 1% excise tax on the buyback of public company stock and a new corporate alternative minimum tax (CAMT). Effective for tax years beginning after December 31, 2022, the CAMT imposes a 15% tax on the Adjusted Financial Statement Income (AFSI) on each corporation in a group of corporations that averages greater than $1 billion in AFSI over a three-year period. Taxpayers subject to the CAMT regime must pay the greater of 15% of AFSI or their regular federal tax liability. Entergy and the incomeRegistrant Subsidiaries are closely monitoring any potential impact associated with the expansion of federal tax deductions for stock-based compensation. See Note 10incentives, the 1% excise tax, and CAMT. Based on current information and forecasts, Entergy and the Registrant Subsidiaries may be subject to the CAMT beginning in 2026. The United States Treasury Department is expected to issue guidance beginning later this year that will further clarify how the tax credit provisions and CAMT provisions will be interpreted and applied. This guidance will determine the amount of tax credits and incremental cash tax payments Entergy expects in the future as a result of the legislation. Prior to receiving this guidance, Entergy cannot adequately assess the expected future effects on its results of operations, financial position and cash flows. There are no expected effects on the financial statements hereinas of and Notes 2 and 3 tofor the financial statements in the Form 10-K for a discussion of the effects and regulatory activity regarding the Tax Cuts and Jobs Act.year ended December 31, 2022.

ShutdownIn April 2022, Entergy and Sale of Indian Point 2 and Indian Point 3Nebraska Public Power District signed an agreement to mutually terminate the management support services contract, under which Entergy provided plant operation support services for the 800 MW Cooper Nuclear Station located near Brownville, Nebraska, effective July 31, 2022.

As discussedIn October 2022, Entergy sold its 50% membership interest in RS Cogen LLC, an unconsolidated joint venture which owns the Form 10-K, in April 2019, Entergy entered into an agreementRS Cogen plant, to sell, directly or indirectly, 100%a subsidiary of the other 50% equity interestspartner. Entergy sold its 50% membership interest in the subsidiaries that own Indian Point 1, Indian Point 2, and Indian Point 3 to a Holtec subsidiaryRS Cogen, LLC for decommissioning the plants.approximately $5 million with no resulting income statement effect.

As of September 30, 2021, 23.3%2022, 20% of the debt outstanding is at the parent company, Entergy Corporation, 76.2%79.5% is at the Utility, and 0.5% is at Entergy Wholesale Commodities. Net debt consists of debt less cash and cash equivalents.  Debt consists of notes payable and commercial paper, finance lease obligations, and long-term debt, including the currently maturing portion.  Capital consists of debt, common shareholders’ equity, and subsidiaries’ preferred stock without sinking fund.  Net capital consists of capital less cash and cash equivalents.  Entergy uses the debt to capital ratios excluding securitization bonds in analyzing its financial condition and believes they provide useful information to its investors and creditors in evaluating Entergy’s financial condition because the securitization bonds are non-recourse to Entergy, as more fully described in Note 5 to the financial statements in the Form 10-K.  Entergy 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’s financial condition because net debt indicates Entergy’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3.5 billion and expires in June 2026.2027.  The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility.  The commitment fee is currently 0.225% of the undrawn commitment amount.  Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation.  The weighted average interest rate for the nine months ended September 30, 20212022 was 1.60%2.39% on the drawn portion of the facility. Following is a summaryAs of the borrowingsSeptember 30, 2022, amounts outstanding and capacity available under the $3.5 billion credit facility as of September 30, 2021:are:

A covenant in Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization.  The calculation of this debt ratio under Entergy Corporation’s credit facility is different than the calculation of the debt to capital ratio above.  One such difference is that it excludes the effects, among other things, of certain impairments related to the Entergy Wholesale Commodities nuclear generation assets.  Entergy is currently in compliance with the covenant and expects to remain in compliance with this covenant.  If Entergy fails to meet this ratio, or if Entergy or one of the Registrant SubsidiariesUtility operating companies (except Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur.  See Note 4 to the financial statements herein for additional discussion of the Entergy Corporation credit facility and discussion of the Registrant Subsidiaries’Utility operating companies’ credit facilities.

Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2

Entergy Louisiana had $291 million and Entergy Mississippi had a total of $33 million in their storm reserve escrow accounts at September 30, 2021.2022.

Entergy Corporation currently expects to issue approximately $1.5 billion of equity from 2021 through 2024. Entergy is considering various methods, including, among others, atAs discussed in the market distributions, block trades, and preferred equity issuances. InForm 10-K, 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 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 also enter into forward sale agreements for the sale of its common stock. TheInitially, the aggregate number of shares of common stock sold under this sales agreement and under any forward sale agreement maycould not exceed an aggregate gross sales price of $1 billion. In May 2022, Entergy increased the aggregate gross sales price authorized under the at the market equity distribution program by $1 billion. Through September 30, 2022, Entergy has utilized the equity distribution program either to sell or to enter into forward sale agreements with respect to shares of common stock with an aggregate gross sales price of approximately $1 billion, of which approximately $870 million of aggregate gross sales price is the subject of forward sale agreements that have not been settled and is subject to adjustment pursuant to the forward sale agreements. Entergy currently expects to settle the forward sales agreements by December 31, 2022. In addition to settlement of existing forward sale agreements, Entergy Corporation currently expects to issue approximately $130 million of equity through 2024. See Note 3 to the financial statements herein for discussion of the forward salessale agreements and common stock issuances and sales under the equity distribution program.

As discussed in the Form 10-K, in April 2020 the APSC issued an order approving Entergy Arkansas’s acquisition of the Searcy Solar facility as being in the public interest. In May 2021, Entergy Arkansas filed with the APSC an application seeking to amend its certificate for the Searcy Solar facility to allow for the use of a tax equity partnership. The tax equity partnership structure is expected to reduce costs and yield incremental net benefits to customers beyond those expected under the build-own-transfer structure alone. The APSC approved Entergy Arkansas’s tax equity partnership request in September 2021. Subject to the terms of the tax equity partnership, Entergy Arkansas will purchase the facility upon mechanical completion and after the other purchase contingencies have been met. Closing is expected to occur by the end of 2021.

As discussed in the Form 10-K, in November 2018,2021, Entergy Mississippi announced that it signedLouisiana filed an agreementapplication with the LPSC seeking certification of and approval for the purchaseaddition of an approximately 100 MWfour 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). These resources, all of which would be constructed in Louisiana, include (i) Vacherie Solar Energy Center, a 150 megawatt resource in St. James Parish; (ii) Sunlight Road Solar, a 50 megawatt resource in Washington Parish; (iii) St. Jacques Louisiana Solar, a 150 megawatt resource in St. James Parish; and (iv) Elizabeth Solar facility, a 125 megawatt resource in Allen Parish. St. Jacques Louisiana Solar would be acquired through a build-own-transfer agreement; the remaining resources involve power purchase agreements. Sunlight Road Solar and Elizabeth Solar facility have estimated in service dates in 2024, and Vacherie Solar Energy Center and St. Jacques Louisiana Solar have estimated in service dates in 2025. In March 2022 direct testimony from Walmart, the Louisiana Energy Users Group (LEUG), and the LPSC staff was filed. Each party recommended that will be sited on approximately 1,000 acresthe LPSC approve the resources proposed in Sunflower County, Mississippi.Entergy Louisiana’s application, and the LPSC staff witness indicated that the process through which Entergy Louisiana solicited or obtained the proposals for the resources complied with applicable LPSC orders. The estimated base purchase price is approximately $138.4 million. The estimated total investment, includingLPSC staff and LEUG’s witnesses made recommendations to modify the base purchase priceproposed Rider GGO and Entergy Louisiana’s proposed rate relief. In April 2022 the LPSC staff and LEUG filed cross-answering testimony concerning the other related costs, forparty’s proposed modifications to Rider GGO and the proposed rate recovery. Entergy Mississippi to acquireLouisiana filed rebuttal testimony in June 2022. In August 2022 the parties reached a settlement certifying the 2021 Solar Portfolio and approving implementation of Rider GGO. In September 2022 the LPSC approved the settlement.

As discussed in the MPSC approved Entergy Mississippi’s proposed revisions to its formula rate plan to provide for an interim capacity rate adjustment mechanism to recover the non-fuel related costs of additional owned capacity owned by Entergy Mississippi, including the annual ownership costs of the Sunflower Solar Facility. Recovery through the interim capacity rate adjustment requires MPSC approval for each new resource. InForm 10-K, in April 2020 the MPSC issued an order approving certification of the Sunflower Solar Facilityfacility and its recovery through the interim capacity rate adjustment mechanism, subject to certain conditions including: (i) thatconditions. In May 2022 both Entergy Mississippi pursue aand the tax equity investor made capital contributions to the tax equity partnership structure through whichthat were then used to make an initial payment of $105 million for acquisition of the partnership would acquire and ownfacility. In July 2022, pursuant to the facility under the build-own-transfer agreement and (ii) that ifMPSC’s April 2020 order, Entergy Mississippi does not consummatesubmitted a compliance filing to the partnership structure under the termsMPSC with updated calculations of the order, there will be a capimpact of $136 millionthe Sunflower Solar facility on rate base and revenue requirement for the levelSunflower Solar facility and benefits of recoverable costs. Closingthe tax equity partnership. In November 2022 the MPSC approved Entergy Mississippi’s July 2022 compliance filing and authorized the recovery of the costs of the Sunflower Solar facility through the interim capacity rate adjustment mechanism in the formula rate plan with rates effective in December 2022. Substantial completion of the Sunflower Solar facility was accepted by Entergy Mississippi in September 2022. A final payment is targeted to occur by the end of secondcurrently expected in fourth quarter 2022. Commercial operation at the Sunflower Solar facility commenced in September 2022. See Note 14 to the financial statements herein for discussion of Entergy Mississippi’s purchase of the Sunflower Solar facility.