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__________________________________________________________________________________________

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2023

☐	TRANSITION REPORT PURSUANT TO SECTION 13<br>OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________ to ____________		Commission<br><br>File Number	Registrant, State of Incorporation or Organization, Address of Principal Executive Offices, Telephone Number, and IRS Employer Identification No.	Commission<br><br>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)<br><br>639 Loyola Avenue<br><br>New Orleans, Louisiana 70113<br><br>Telephone (504) 576-4000		(a Texas limited liability company)<br><br>1600 Perdido Street<br><br>New Orleans, Louisiana 70112<br><br>Telephone (504) 670-3702
	72-1229752		82-2212934
1-10764	ENTERGY ARKANSAS, LLC	1-34360	ENTERGY TEXAS, INC.
	(a Texas limited liability company)<br><br>425 West Capitol Avenue<br><br>Little Rock, Arkansas 72201<br><br>Telephone (501) 377-4000		(a Texas corporation)<br><br>2107 Research Forest Drive<br><br>The Woodlands, Texas 77380<br><br>Telephone (409) 981-2000
	83-1918668		61-1435798
1-32718	ENTERGY LOUISIANA, LLC	1-09067	SYSTEM ENERGY RESOURCES, INC.
	(a Texas limited liability company)<br><br>4809 Jefferson Highway<br><br>Jefferson, Louisiana 70121<br><br>Telephone (504) 576-4000		(an Arkansas corporation)<br><br>1340 Echelon Parkway<br><br>Jackson, Mississippi 39213<br><br>Telephone (601) 368-5000
	47-4469646		72-0752777
1-31508	ENTERGY MISSISSIPPI, LLC
	(a Texas limited liability company)<br><br>308 East Pearl Street<br><br>Jackson, Mississippi 39201<br><br>Telephone (601) 368-5000
	83-1950019

__________________________________________________________________________________________

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Securities registered pursuant to Section 12(b) of the Act:

Registrant	Title of Class	Trading<br>Symbol	Name of Each Exchange<br>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

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Indicate by check mark whether the registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrants have submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrants were required to submit such files). Yes ☑ No ☐

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.

	Large accelerated filer	Non-accelerated filer
Entergy Corporation	ü
Entergy Arkansas, LLC		ü
Entergy Louisiana, LLC		ü
Entergy Mississippi, LLC		ü
Entergy New Orleans, LLC		ü
Entergy Texas, Inc.		ü
System Energy Resources, Inc.		ü

If an emerging growth company, indicate by check mark if the registrants have elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Common Stock Outstanding		Outstanding at July 31, 2023
Entergy Corporation	($0.01 par value)	211,455,588

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, 2022 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, filed by the individual registrants with the SEC, and should be read in conjunction therewith.

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	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	22
Consolidated Statements of Comprehensive Income	23
Consolidated Statements of Cash Flows	24
Consolidated Balance Sheets	26
Consolidated Statements of Changes in Equity	28
Notes to Financial Statements
Note 1. Commitments and Contingencies	30
Note 2. Rate and Regulatory Matters	31
Note 3. Equity	43
Note 4. Revolving Credit Facilities, Lines of Credit, Short-term Borrowings, and Long-term Debt	51
Note 5. Stock-based Compensation	56
Note 6. Retirement and Other Postretirement Benefits	57
Note 7. Business Segment Information	64
Note 8. Risk Management and Fair Values	66
Note 9. Decommissioning Trust Funds	80
Note 10. Income Taxes	87
Note 11. Property, Plant, and Equipment	88
Note 12. Variable Interest Entities	89
Note 13. Revenue	90
Item 3. Quantitative and Qualitative Disclosures About Market Risk	94
Item 4. Controls and Procedures	94
Entergy Arkansas, LLC and Subsidiaries
Management’s Financial Discussion and Analysis	96
Consolidated Income Statements	107
Consolidated Statements of Cash Flows	109
Consolidated Balance Sheets	110
Consolidated Statements of Changes in Equity	112
Entergy Louisiana, LLC and Subsidiaries
Management’s Financial Discussion and Analysis	113
Consolidated Income Statements	127
Consolidated Statements of Comprehensive Income	128
Consolidated Statements of Cash Flows	129
Consolidated Balance Sheets	130
Consolidated Statements of Changes in Equity	132

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	Page Number
Entergy Mississippi, LLC and Subsidiaries
Management’s Financial Discussion and Analysis	133
Consolidated Income Statements	142
Consolidated Statements of Cash Flows	143
Consolidated Balance Sheets	144
Consolidated Statements of Changes in Equity	146
Entergy New Orleans, LLC and Subsidiaries
Management’s Financial Discussion and Analysis	147
Consolidated Income Statements	156
Consolidated Statements of Cash Flows	157
Consolidated Balance Sheets	158
Consolidated Statements of Changes in Member’s Equity	160
Entergy Texas, Inc. and Subsidiaries
Management’s Financial Discussion and Analysis	161
Consolidated Income Statements	171
Consolidated Statements of Cash Flows	172
Consolidated Balance Sheets	174
Consolidated Statements of Changes in Equity	176
System Energy Resources, Inc.
Management’s Financial Discussion and Analysis	177
Statements of Operations	185
Statements of Cash Flows	187
Balance Sheets	188
Statements of Changes in Common Equity	190
Part II. Other Information
Item 1. Legal Proceedings	191
Item 1A. Risk Factors	191
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	191
Item 5. Other Information	192
Item 6. Exhibits	193
Signature	196

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FORWARD-LOOKING INFORMATION

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

Forward-looking statements involve a number of risks and uncertainties. There are factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including (a) those factors discussed or incorporated by reference in 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):

•resolution of pending and future rate cases and related litigation, formula rate proceedings and related negotiations, including various performance-based rate discussions, Entergy’s utility supply plan, and recovery of fuel and purchased power costs, as well as delays in cost recovery resulting from these proceedings;

•regulatory and operating challenges and uncertainties and economic risks associated with the Utility operating companies’ participation in MISO, including the benefits of continued MISO participation, the effect of current or projected MISO market rules and market and system conditions in the MISO markets, the absence of a minimum capacity obligation for load serving entities in MISO and the consequent ability of some load serving entities to “free ride” on the energy market without paying appropriate compensation for the capacity needed to produce that energy, the allocation of MISO system transmission upgrade costs, the MISO-wide base rate of return on equity allowed or any MISO-related charges and credits required by the FERC, and the effect of planning decisions that MISO makes with respect to future transmission investments by the Utility operating companies;

•changes in utility regulation, including, with respect to retail and wholesale competition, the ability to recover net utility assets and other potential stranded costs, and the application of more stringent return on equity criteria, transmission reliability requirements, or market power criteria by the FERC or the U.S. Department of Justice;

•changes in the regulation or regulatory oversight of Entergy’s owned or operated nuclear generating facilities, nuclear materials and fuel, and the effects of new or existing safety or environmental concerns regarding nuclear power plants and fuel;

•resolution of pending or future applications, and related regulatory proceedings and litigation, for license modifications or other authorizations required of nuclear generating facilities and the effect of public and political opposition on these applications, regulatory proceedings, and litigation;

•the performance of and deliverability of power from Entergy’s generation resources, including the capacity factors at Entergy’s nuclear generating facilities;

•increases in costs and capital expenditures that could result from changing regulatory requirements, changing economic conditions, and emerging operating and industry issues, and the risks related to recovery of these costs and capital expenditures from Entergy’s customers (especially in an increasing cost environment);

•the commitment of substantial human and capital resources required for the safe and reliable operation and maintenance of Entergy’s nuclear generating facilities;

iii

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FORWARD-LOOKING INFORMATION (Continued)

•Entergy’s ability to develop and execute on a point of view regarding future prices of electricity, natural gas, and other energy-related commodities;

•the prices and availability of fuel and power Entergy must purchase for its Utility customers, and Entergy’s ability to meet credit support requirements for fuel and power supply contracts;

•volatility and changes in markets for electricity, natural gas, uranium, emissions allowances, and other energy-related commodities, and the effect of those changes on Entergy and its customers;

•changes in law resulting from federal or state energy legislation or legislation subjecting energy derivatives used in hedging and risk management transactions to governmental regulation;

•changes in environmental laws and regulations, agency positions, or associated litigation, including requirements for reduced emissions of sulfur dioxide, nitrogen oxide, greenhouse gases, mercury, particulate matter and other regulated air emissions, heat and other regulated discharges to water, waste management and disposal, remediation of contaminated sites, wetlands protection and permitting, and reporting, and changes in costs of compliance with environmental laws and regulations;

•changes in laws and regulations, agency positions, or associated litigation related to protected species and associated critical habitat designations;

•the effects of changes in federal, state, or local laws and regulations, and other governmental actions or policies, including changes in monetary, fiscal, tax, environmental, trade/tariff, domestic purchase requirements, or energy policies and related laws, regulations, and other governmental actions;

•the effects of full or partial shutdowns of the federal government or delays in obtaining government or regulatory actions or decisions;

•uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel and nuclear waste storage and disposal and the level of spent fuel and nuclear waste disposal fees charged by the U.S. government or other providers related to such sites;

•variations in weather and the occurrence of hurricanes and other storms and disasters, including uncertainties associated with efforts to remediate the effects of hurricanes, ice storms, or other weather events and the recovery of costs associated with restoration, including accessing funded storm reserves, federal and local cost recovery mechanisms, securitization, and insurance, as well as any related unplanned outages;

•effects of climate change, including the potential for increases in extreme weather events and sea levels or coastal land and wetland loss;

•the risk that an incident at any nuclear generation facility in the U.S. could lead to the assessment of significant retrospective assessments and/or retrospective insurance premiums as a result of Entergy’s participation in a secondary financial protection system and a utility industry mutual insurance company;

•changes in the quality and availability of water supplies and the related regulation of water use and diversion;

•Entergy’s ability to manage its capital projects, including by completing projects timely and within budget, to obtain the anticipated performance or other benefits of such capital projects, and to manage its operation and maintenance costs;

•the effects of supply chain disruptions, including those originating during the COVID-19 global pandemic or driven by trade-related governmental actions, on Entergy’s ability to complete its capital projects in a timely and cost-effective manner;

•Entergy’s ability to purchase and sell assets at attractive prices and on other attractive terms;

•the economic climate, and particularly economic conditions in Entergy’s Utility service area and events and circumstances that could influence economic conditions in those areas, including power prices and inflation, and the risk that anticipated load growth may not materialize;

•changes to federal income tax laws, regulations, and interpretive guidance, including the Inflation Reduction Act of 2022, and the continued impact of the Tax Cuts and Jobs Act of 2017, and any related intended or unintended consequences on financial results and future cash flows;

•the effects of Entergy’s strategies to reduce tax payments;

•actions of rating agencies, including changes in the ratings of debt and preferred stock, changes in general corporate ratings, and changes in the rating agencies’ ratings criteria;

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FORWARD-LOOKING INFORMATION (Concluded)

•changes in the financial markets and regulatory requirements for the issuance of securities, particularly as they affect access to and cost of capital and Entergy’s ability to refinance existing securities and fund investments and acquisitions;

•changes in inflation and interest rates and the impacts of inflation or a recession on our customers;

•the effects of litigation, including the outcome and resolution of the proceedings involving System Energy currently before the FERC and any appeals of FERC decisions in those proceedings;

•the effects of government investigations or proceedings;

•changes in technology, including (i) Entergy’s ability to effectively address and implement new or emerging technologies, (ii) the impact of changes relating to new, developing, or alternative sources of generation such as distributed energy and energy storage, renewable energy, energy efficiency, demand side management, and other measures that reduce load and government policies incentivizing development or utilization of the foregoing, and (iii) competition from other companies offering products and services to Entergy’s customers based on new or emerging technologies or alternative sources of generation;

•Entergy’s ability to effectively formulate and implement plans to reduce its carbon emission rate and aggregate carbon emissions, including its commitment to achieve net-zero carbon emissions by 2050 and the related increasing investment in renewable power generation sources, and the potential impact on its business and financial condition of attempting to achieve such objectives;

•the effects, including increased security costs, of threatened or actual terrorism, cyber-attacks or data security breaches, physical attacks on or other interference with facilities or infrastructure, natural or man-made electromagnetic pulses that affect transmission or generation infrastructure, accidents, and war or a catastrophic event such as a nuclear accident or a natural gas pipeline explosion;

•the effects of a catastrophe, pandemic (or other health related event), or a global or geopolitical event, such as the military activities between Russia and Ukraine, including economic and societal disruptions; volatility in the capital markets (and any related increased cost of capital or any inability to access the capital markets or draw on available bank credit facilities); reduced demand for electricity, particularly from commercial and industrial customers; increased or unrecoverable costs; supply chain, vendor, and contractor disruptions, including as a result of trade-related sanctions; delays in completion of capital or other construction projects, maintenance, and other operations activities, including prolonged or delayed outages; impacts to Entergy’s workforce availability, health, or safety; increased cybersecurity risks as a result of many employees telecommuting; increased late or uncollectible customer payments; regulatory delays; executive orders affecting, or increased regulation of, Entergy’s business; changes in credit ratings or outlooks as a result of any of the foregoing; or other adverse impacts on Entergy’s ability to execute on its business strategies and initiatives or, more generally, on Entergy’s results of operations, financial condition, and liquidity;

•Entergy’s ability to attract and retain talented management, directors, and employees with specialized skills;

•Entergy’s ability to attract, retain, and manage an appropriately qualified workforce;

•changes in accounting standards and corporate governance best practices;

•declines in the market prices of marketable securities and resulting funding requirements and the effects on benefits costs for Entergy’s defined benefit pension and other postretirement benefits plans;

•future wage and employee benefits costs, including changes in discount rates and returns on benefit plan assets;

•changes in decommissioning trust fund values or earnings or in the timing of, requirements for, or cost to decommission Entergy’s nuclear plant sites and the implementation of decommissioning of such sites following shutdown;

•the effectiveness of Entergy’s risk management policies and procedures and the ability and willingness of its counterparties to satisfy their financial and performance commitments; and

•Entergy and its subsidiaries’ ability to successfully execute on their business strategies, including their ability to complete strategic transactions that they may undertake.

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DEFINITIONS

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

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
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 activities 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. In 2022, Entergy completed its multi-year strategy to exit the merchant nuclear power business and upon completion of all transition activities, effective January 1, 2023, Entergy Wholesale Commodifies is no longer a reportable segment.
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, 2022, filed with the SEC by Entergy Corporation and its Registrant Subsidiaries
GAAP	Generally Accepted Accounting Principles
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
HLBV	Hypothetical liquidation at book value

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DEFINITIONS (Continued)

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
IRS	Internal Revenue Service
ISO	Independent System Operator
kW	Kilowatt, which equals one thousand watts
kWh	Kilowatt-hour(s)
LPSC	Louisiana Public Service Commission
LURC	Louisiana Utilities Restoration Corporation
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)
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 EAM Nelson Holding, LLC
Net debt to net capital ratio	Gross debt less cash and cash equivalents divided by total capitalization less cash and cash equivalents, which is a non-GAAP measure
NRC	Nuclear Regulatory Commission
Palisades	Palisades Nuclear Plant (nuclear), previously owned as part of Entergy’s non-utility business, which ceased power production in May 2022 and was sold in June 2022
Parent & Other	The portions of Entergy not included in the Utility segment, primarily consisting of the activities of the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business which owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers and also provides decommissioning services to nuclear power plants owned by non-affiliated entities in the United States
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.
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

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DEFINITIONS (Concluded)

Abbreviation or Acronym	Term
Vermont Yankee	Vermont Yankee Nuclear Power Station (nuclear), previously owned as a part of Entergy’s non-utility business, 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

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ENTERGY CORPORATION AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Entergy operates primarily through a single reportable segment, Utility. The Utility segment includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business in portions of Louisiana.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy completed its multi-year strategy to exit the merchant nuclear power business in 2022 and upon completion of all transition activities, effective January 1, 2023, Entergy Wholesale Commodities is no longer a reportable segment. Remaining business activity previously reported under Entergy Wholesale Commodities is now included under Parent & Other. Historical segment financial information presented herein has been restated for the second quarter 2022 and the six months ended June 30, 2022 to reflect the change in reportable segments. The change in reportable segments had no effect on Entergy’s consolidated financial statements or historical segment financial information for the Utility reportable segment. See Note 7 to the financial statements herein for discussion of and financial information regarding Entergy’s business segments.

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Entergy Corporation and Subsidiaries

Management's Financial Discussion and Analysis

Results of Operations

Second Quarter 2023 Compared to Second Quarter 2022

Following are income statement variances for Utility, Parent & Other, and Entergy comparing the second quarter 2023 to the second quarter 2022 showing how much the line item increased or (decreased) in comparison to the prior period:

	Utility	Parent &<br>Other (a)	Entergy
	(In Thousands)
2022 Net Income Attributable to Entergy Corporation	$152,739	$6,964	$159,703
Operating revenues	(487,522)	(61,648)	(549,170)
Fuel, fuel-related expenses, and gas purchased for resale	(52,733)	(15,496)	(68,229)
Purchased power	(353,755)	(10,336)	(364,091)
Other regulatory charges (credits) - net	(859,564)	—	(859,564)
Other operation and maintenance	(81,596)	(36,225)	(117,821)
Asset write-offs, impairments, and related charges (credits)	—	164,066	164,066
Taxes other than income taxes	13,588	(2,254)	11,334
Depreciation and amortization	25,810	(1,631)	24,179
Other income	78,428	(6,774)	71,654
Interest expense	17,268	6,739	24,007
Other expenses	7,745	(21,584)	(13,839)
Income taxes	516,193	(21,754)	494,439
Preferred dividend requirements of subsidiaries and noncontrolling interests	(3,538)	—	(3,538)
2023 Net Income (Loss) Attributable to Entergy Corporation	$514,227	($122,983)	$391,244

(a)Parent & Other includes eliminations, which are primarily intersegment activity.

Second quarter 2022 results of operations include: 1) a regulatory charge of $551 million ($413 million net-of-tax), recorded at Utility, as a result of System Energy’s partial settlement agreement and offer of settlement related to pending proceedings before the FERC; 2) a $283 million reduction in income tax expense as a result of the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida securitization financing in May 2022, which also resulted in a $224 million ($165 million net-of-tax) regulatory charge, recorded at Utility, to reflect Entergy Louisiana’s obligation to provide credits to its customers as described in an LPSC ancillary order issued as part of the securitization regulatory proceeding; and 3) a gain of $166 million ($130 million net-of-tax), reflected in “Asset write-offs, impairments, and related charges (credits),” as a result of the sale of the Palisades plant in June 2022. See Note 2 to the financial statements in the Form 10-K for further discussion of the System Energy partial settlement agreement. See Notes 2 and 3 to the financial statements in the Form 10-K for further discussion of the Entergy Louisiana May 2022 storm cost securitization. See Note 14 to the financial statements in the Form 10-K for further discussion of the sale of the Palisades plant.

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Entergy Corporation and Subsidiaries

Management's Financial Discussion and Analysis

Operating Revenues

Utility

Following is an analysis of the change in operating revenues comparing the second quarter 2023 to the second quarter 2022:

	Amount
	(In Millions)
2022 operating revenues	$3,306
Fuel, rider, and other revenues that do not significantly affect net income	(510)
Storm restoration carrying costs	(59)
Volume/weather	(47)
Return of unprotected excess accumulated deferred income taxes to customers	16
Retail electric price	113
2023 operating revenues	$2,819

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.

Storm restoration carrying costs, representing the equity component of storm restoration carrying costs, includes $37 million at Entergy Louisiana and $22 million at Entergy Texas, recorded in second quarter 2022, recognized as part of the Entergy Louisiana storm cost securitization in May 2022 and the Entergy Texas storm cost securitization in April 2022. See Note 2 to the financial statements in the Form 10-K for discussion of the storm cost securitizations.

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

The return of unprotected excess accumulated deferred income taxes to customers resulted from activity at the Utility operating companies in response to the enactment of the Tax Cuts and Jobs Act. The return of unprotected excess accumulated deferred income taxes began in second quarter 2018. In the second quarter 2022, $16 million was returned to customers through reductions in operating revenues. There was no return of unprotected excess accumulated deferred income taxes for Entergy or the Utility operating companies for the second quarter 2023. There was no effect on net income as the reductions in operating revenues were offset by 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.

The retail electric price variance is primarily due to:

•an increase in Entergy Arkansas’s formula rate plan rates effective January 2023;

•an increase in Entergy Louisiana’s formula rate plan revenues, including increases in the distribution and transmission recovery mechanisms, effective September 2022;

•increases in Entergy Mississippi’s formula rate plan rates effective August 2022 and April 2023;

•an increase in Entergy New Orleans’s formula rate plan rates effective September 2022; and

•an interim increase in the annual base rate, including the realignment of the costs previously being collected through the distribution and transmission cost recovery factor riders and the generation cost recovery rider to base rates, effective June 2023 and the implementation of the generation cost recovery relate-back rider for the Hardin County Peaking Facility effective May 2023, each at Entergy Texas.

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

Total electric energy sales for Utility for the three months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	9,027	9,493	(5)
Commercial	6,969	7,203	(3)
Industrial	13,301	13,480	(1)
Governmental	608	641	(5)
Total retail	29,905	30,817	(3)
Sales for resale	3,171	3,920	(19)
Total	33,076	34,737	(5)

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

Other Income Statement Items

Utility

Other operation and maintenance expenses decreased from $726 million for the second quarter 2022 to $644 million for the second quarter 2023 primarily due to:

•a decrease of $25 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023 and a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs;

•a decrease of $15 million in transmission costs allocated by MISO. See Note 2 to the financial statements in the Form 10-K for further information on the recovery of these costs;

•a decrease of $11 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2023 as compared to prior year;

•a decrease of $10 million in nuclear generation expenses primarily due to a lower scope of work performed in 2023 as compared to prior year and lower nuclear labor costs;

•a gain of $7 million on the partial sale of a service center at Entergy Texas in April 2023 as part of an eminent domain proceeding; and

•a decrease of $6 million in power delivery expenses primarily due to lower transmission repairs and maintenance costs.

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

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in depreciation rates at Entergy Texas, effective with the approval of an interim increase in the annual base rate in June 2023. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the 2022 base rate case filing at Entergy Texas.

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Other regulatory charges (credits) - net includes:

•a regulatory charge of $224 million, recorded by Entergy Louisiana in second quarter 2022, to reflect its obligation to provide credits to its customers as described in an LPSC ancillary order issued in the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida securitization regulatory proceeding. See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Louisiana May 2022 storm cost securitization; and

•a regulatory charge of $551 million, recorded by System Energy in second quarter 2022, to reflect the effects of the partial settlement agreement and offer of settlement related to pending proceedings before the FERC. See Note 2 to the financial statements in the Form 10-K for discussion of the partial settlement agreement.

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-related costs collected in revenue.

Other income increased primarily due to:

•an increase of $39 million in intercompany dividend income from affiliated preferred membership interests, related to storm cost securitizations;

•changes in decommissioning trust fund activity, including portfolio rebalancing of certain decommissioning trust funds in 2022; and

•an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2023, including the Orange County Advanced Power Station project.

The increase was partially offset by:

•a decrease of $8 million due to the recognition in second quarter 2022 of storm restoration carrying costs, primarily related to Hurricane Ida; and

•an increase in net periodic pension and other postretirement benefits non-service costs as a result of an increase in the discount rates used to value the benefits liabilities and the amortization of 2022 trust asset losses. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Entergy Louisiana storm cost securitizations.

Interest expense increased primarily due to:

•the issuance by Entergy Arkansas of $425 million of 5.15% Series mortgage bonds in January 2023;

•the issuance by Entergy Louisiana of $500 million of 4.75% Series mortgage bonds in August 2022; and

•the issuance by Entergy Texas of $325 million of 5.00% Series mortgage bonds in August 2022.

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Parent and Other

Operating revenues decreased primarily due to the absence of revenues from Palisades, after it was shut down in May 2022.

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

Asset write-offs, impairments, and related charges (credits) for the second quarter 2022 includes a gain of $166 million as a result of the sale of the Palisades plant in June 2022.

Other income decreased primarily due to the elimination for consolidation purposes of intercompany dividend income of $39 million from affiliated preferred membership interests, as discussed above, substantially offset by losses on Palisades decommissioning trust fund investments in 2022 and higher non-service pension income. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs.

Interest expense increased primarily due to higher variable interest rates on commercial paper in 2023, partially offset by the redemption by Entergy, in July 2022, of $650 million of 4.00% Series senior notes. See Note 4 to the financial statements herein for discussion of Entergy’s commercial paper program.

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

See Note 14 to the financial statements in the Form 10-K for a discussion of the shutdown and sale of the Palisades plant.

Income Taxes

The effective income tax rate was 25.6% for the second quarter 2023. The difference in the effective income tax rate for the second quarter 2023 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes.

The effective income tax rate was 183.8% for the second quarter 2022. The difference in the effective income tax rate for the second quarter 2022 versus the federal statutory rate of 21% was primarily due to the reduction in income tax expense as a result of the May 2022 securitization of Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida storm costs pursuant to Louisiana Act 55, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021. The high effective income tax rate was also driven by a loss before income taxes for the second quarter 2022 primarily caused by the regulatory charge recorded by System Energy as a result of the partial settlement agreement and offer of settlement. See Notes 2 and 3 to the financial statements in the Form 10-K for further discussion of the Entergy Louisiana May 2022 storm cost securitization. See Note 2 to the financial statements in the Form 10-K for discussion of the System Energy partial settlement agreement.

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Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Following are income statement variances for Utility, Parent & Other, and Entergy comparing the six months ended June 30, 2023 to the six months ended June 30, 2022 showing how much the line item increased or (decreased) in comparison to the prior period:

	Utility	Parent &<br>Other (a)	Entergy
	(In Thousands)
2022 Net Income (Loss) Attributable to Entergy Corporation	$493,201	($57,098)	$436,103
Operating revenues	(267,687)	(178,350)	(446,037)
Fuel, fuel-related expenses, and gas purchased for resale	194,946	(31,731)	163,215
Purchased power	(390,731)	(4,697)	(395,428)
Other regulatory charges (credits) - net	(807,465)	—	(807,465)
Other operation and maintenance	(90,320)	(74,788)	(165,108)
Asset write-offs, impairments, and related charges (credits)	—	163,321	163,321
Taxes other than income taxes	27,720	(11,097)	16,623
Depreciation and amortization	47,962	(8,838)	39,124
Other income	89,191	(2,142)	87,049
Interest expense	36,272	11,947	48,219
Other expenses	15,451	(46,614)	(31,163)
Income taxes	374,709	(25,743)	348,966
Preferred dividend requirements of subsidiaries and noncontrolling interests	(5,368)	—	(5,368)
2023 Net Income (Loss) Attributable to Entergy Corporation	$911,529	($209,350)	$702,179

(a)Parent & Other includes eliminations, which are primarily intersegment activity.

Results of operations for the six months ended June 30, 2023 include a $129 million reduction in income tax expense as a result of the Hurricane Ida securitization in March 2023, which also resulted in a $103 million ($76 million net-of-tax) regulatory charge, recorded at Utility, to reflect Entergy Louisiana’s obligation to provide credits to its customers as described in an LPSC ancillary order issued as part of the securitization regulatory proceeding. See Note 2 to the financial statements herein for further discussion of the Entergy Louisiana March 2023 storm cost securitization.

Results of operations for the six months ended June 30, 2022 include: 1) a regulatory charge of $551 million ($413 million net-of-tax), recorded at Utility, as a result of System Energy’s partial settlement agreement and offer of settlement related to pending proceedings before the FERC; 2) a $283 million reduction in income tax expense as a result of the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida May 2022 securitization financing, which also resulted in a $224 million ($165 million net-of-tax) regulatory charge, recorded at Utility, to reflect Entergy Louisiana’s obligation to provide credits to its customers as described in an LPSC ancillary order issued as part of the securitization regulatory proceeding; and 3) a gain of $166 million ($130 million net-of-tax), reflected in “Asset write-offs, impairments, and related charges (credits),” as a result of the sale of the Palisades plant in June 2022. See Note 2 to the financial statements in the Form 10-K for further discussion of the System Energy partial settlement agreement. See Notes 2 and 3 to the financial statements in the Form 10-K for further discussion of the Entergy Louisiana May 2022 storm cost securitization. See Note 14 to the financial statements in the Form 10-K for further discussion of the sale of the Palisades plant.

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Operating Revenues

Utility

Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2023 to the six months ended June 30, 2022:

	Amount
	(In Millions)
2022 operating revenues	$6,034
Fuel, rider, and other revenues that do not significantly affect net income	(347)
Volume/weather	(122)
Storm restoration carrying costs	(29)
Return of unprotected excess accumulated deferred income taxes to customers	33
Retail electric price	198
2023 operating revenues	$5,767

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

Storm restoration carrying costs, representing the equity component of storm restoration carrying costs, includes $37 million recorded by Entergy Louisiana in second quarter 2022, recognized as part of the Entergy Louisiana storm cost securitization in May 2022 and $22 million recorded by Entergy Texas in second quarter 2022, recognized as part of the Entergy Texas storm cost securitization in April 2022, partially offset by $31 million recorded by Entergy Louisiana in first quarter 2023, recognized as part of the Entergy Louisiana storm cost securitization in March 2023. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the storm cost securitizations.

The return of unprotected excess accumulated deferred income taxes to customers resulted from activity at the Utility operating companies in response to the enactment of the Tax Cuts and Jobs Act. The return of unprotected excess accumulated deferred income taxes began in second quarter 2018. In the six months ended June 30, 2022, $33 million was returned to customers through reductions in operating revenues. There was no return of unprotected excess accumulated deferred income taxes for Entergy or the Utility operating companies for the six months ended June 30, 2023. There was 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.

The retail electric price variance is primarily due to:

•an increase in Entergy Arkansas’s formula rate plan rates effective January 2023;

•an increase in Entergy Louisiana’s formula rate plan revenues, including increases in the distribution and transmission recovery mechanisms, effective September 2022;

•increases in Entergy Mississippi’s formula rate plan rates effective August 2022 and April 2023;

•an increase in Entergy New Orleans’s formula rate plan rates effective September 2022; and

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•an interim increase in the annual base rate, including the realignment of the costs previously being collected through the distribution and transmission cost recovery factor riders and the generation cost recovery rider to base rates, effective June 2023, the implementation of the generation cost recovery relate-back rider for the Hardin County Peaking Facility effective May 2023, and an increase in the transmission cost recovery factor rider effective March 2022, each at Entergy Texas.

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

Total electric energy sales for Utility for the six months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	16,303	17,946	(9)
Commercial	13,217	13,474	(2)
Industrial	26,041	25,976	—
Governmental	1,185	1,226	(3)
Total retail	56,746	58,622	(3)
Sales for resale	7,674	7,562	1
Total	64,420	66,184	(3)

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

Other Income Statement Items

Utility

Other operation and maintenance expenses decreased from $1,354 million for the six months ended June 30, 2022 to $1,264 million for the six months ended June 30, 2023 primarily due to:

•a decrease of $42 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023, a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities, and a revision to estimated incentive compensation expense in the first quarter 2023. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs;

•a decrease of $27 million in transmission costs allocated by MISO. See Note 2 to the financial statements in the Form 10-K for further information on the recovery of these costs;

•a decrease of $14 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2023 as compared to prior year;

•the effects of recording a final judgment in first quarter 2023 to resolve claims in the ANO damages case against the DOE related to spent nuclear fuel storage costs. The damages awarded include the reimbursement of approximately $10 million of spent nuclear fuel storage costs previously recorded as other operation and maintenance expenses. See Note 1 to the financial statements herein for discussion of the spent nuclear fuel litigation; and

•a gain of $7 million on the partial sale of a service center at Entergy Texas in April 2023 as part of an eminent domain proceeding.

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The decrease was partially offset by an increase of $15 million in insurance expenses primarily due to lower nuclear insurance refunds received in 2023.

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

Other regulatory charges (credits) - net includes:

•a regulatory charge of $103 million, recorded by Entergy Louisiana in first quarter 2023, to reflect its obligation to provide credits to its customers as described in an LPSC ancillary order issued in the Hurricane Ida securitization regulatory proceeding. See Note 2 to the financial statements herein for discussion of the Entergy Louisiana March 2023 storm cost securitization;

Other income increased primarily due to:

•an increase of $62 million in intercompany dividend income from affiliated preferred membership interests related to storm cost securitizations;

•an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2023, including the Orange County Advanced Power Station project;

•changes in decommissioning trust fund activity, including portfolio rebalancing of certain decommissioning trust funds in 2022; and

•a $32 million charge, recorded by Entergy Louisiana in second quarter 2022, for the LURC’s 1% beneficial interest in the storm trust I established as part of the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida May 2022 storm cost securitization as compared to a $15 million charge recorded by Entergy Louisiana in first quarter 2023, for the LURC’s 1% beneficial interest in the storm trust II established as part of the March 2023 storm cost securitization.

The increase was partially offset by:

•a decrease of $13 million due to the recognition in second quarter 2022 of storm restoration carrying costs, primarily related to Hurricane Ida; and

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Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Entergy Louisiana storm cost securitizations.

Interest expense increased primarily due to:

•the issuance by Entergy Arkansas of $425 million of 5.15% Series mortgage bonds in January 2023;

•the issuance by Entergy Louisiana of $500 million of 4.75% Series mortgage bonds in August 2022; and

•the issuance by Entergy Texas of $325 million of 5.00% Series mortgage bonds in August 2022.

Parent and Other

Operating revenues decreased primarily due to the absence of revenues from Palisades, after it was shut down in May 2022.

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

Asset write-offs, impairments, and related charges (credits) for the six months ended June 30, 2022 includes a gain of $166 million as a result of the sale of the Palisades plant in June 2022.

Taxes other than income taxes decreased primarily due to decreases in employment taxes due to the absence of expenses from Palisades, after its sale in June 2022.

Depreciation and amortization expenses decreased primarily due to the absence of depreciation expense from Palisades, after it was shut down in May 2022.

Other income decreased primarily due to the elimination for consolidation purposes of intercompany dividend income of $62 million from affiliated preferred membership interests, as discussed above, substantially offset by losses on Palisades decommissioning trust fund investments in 2022, higher non-service pension income, and higher interest income primarily due to higher interest rates. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs.

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

See Note 14 to the financial statements in the Form 10-K for a discussion of the shutdown and sale of the Palisades plant.

Income Taxes

The effective income tax rate was 7.3% for the six months ended June 30, 2023. The difference in the effective income tax rate for the six months ended June 30, 2023 versus the federal statutory rate of 21% was primarily due to the reduction in income tax expense as a result of the March 2023 securitization of Hurricane Ida

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storm costs pursuant to Louisiana Act 55, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021, partially offset by the accrual for state income taxes. See Notes 2 and 10 to the financial statements herein for a discussion of the Entergy Louisiana March 2023 storm cost securitization under Act 293.

The effective income tax rate was (194.8%) for the six months ended June 30, 2022. The difference in the effective income tax rate for the six months ended June 30, 2022 versus the federal statutory rate of 21% was primarily due to the reduction in income tax expense as a result of the May 2022 securitization of Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida storm costs pursuant to Louisiana Act 55, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021, the amortization of excess accumulated deferred income taxes, and certain book and tax differences related to utility plant items. See Notes 2 and 3 to the financial statements in the Form 10-K for a discussion of the effects of and regulatory activity regarding the Tax Cuts and Jobs Act. See Notes 2 and 3 to the financial statements in the Form 10-K for further discussion of the Entergy Louisiana May 2022 storm cost securitization.

Income Tax Legislation and Regulation

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

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. In June 2023 the IRS issued temporary and proposed regulations related to applicable tax credit transferability and direct pay provisions of the Inflation Reduction Act. Entergy and the Registrant Subsidiaries are closely monitoring any potential impact associated with such federal tax incentives to assess the expected future effects on their results of operations, cash flows, and financial condition. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation” in the Form 10-K for a discussion of the Inflation Reduction Act of 2022, including Entergy’s estimates regarding the new corporate alternative minimum tax. There are no effects on the financial statements of Entergy or the Registrant Subsidiaries as of and for the quarter ended June 30, 2023.

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Liquidity and Capital Resources

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources” in the Form 10-K for a discussion of Entergy’s capital structure, capital expenditure plans and other uses of capital, and sources of capital. Following are updates to that discussion.

Capital Structure and Resources

Entergy’s debt to capital ratio is shown in the following table.

	June 30, <br>2023		December 31,<br>2022
Debt to capital	66.8	%	66.9	%
Effect of excluding securitization bonds	(0.2	%)	(0.3	%)
Debt to capital, excluding securitization bonds (non-GAAP) (a)	66.6	%	66.6	%
Effect of subtracting cash	(1.0	%)	(0.1	%)
Net debt to net capital, excluding securitization bonds (non-GAAP) (a)	65.6	%	66.5	%

(a)Calculation excludes the New Orleans and Texas securitization bonds, which are non-recourse to Entergy New Orleans and Entergy Texas, respectively.

As of June 30, 2023, 19.3% of the debt outstanding is at the parent company, Entergy Corporation, and 80.2% is at the Utility. The remaining 0.5% of the debt outstanding relates to the Vermont Yankee credit facility, as discussed in Note 4 to the financial statements herein. 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. The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures. 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 2028. The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility. The commitment fee is currently 0.225% of the undrawn commitment amount. Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation. The weighted-average interest rate for the six months ended June 30, 2023 was 6.34% on the drawn portion of the facility. As of June 30, 2023, amounts outstanding and capacity available under the $3.5 billion credit facility are:

Capacity	Borrowings	Letters<br>of Credit	Capacity<br>Available
(In Millions)
$3,500	$150	$3	$3,347

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. Entergy is currently in compliance

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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 Subsidiaries (except Entergy New Orleans and System Energy) 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’ credit facilities.

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

Equity Issuances and Equity Distribution Program

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Sources of Capital - Equity Issuances and Equity Distribution Program” in the Form 10-K and Note 3 to the financial statements herein for further discussion of the equity distribution program.

Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida (Entergy Louisiana)

As 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 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 additional outages. 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.

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Hurricane Zeta, and Winter Storm Uri were prudently incurred and eligible for recovery; carrying costs of $59.2 million were recoverable; and Entergy Louisiana was authorized to finance $1.657 billion utilizing the securitization process authorized by Act 55, as supplemented by Act 293. In January 2023, the LPSC approved the stipulated settlement subject to certain modifications. These modifications include the recognition of accumulated deferred income tax benefits related to damaged assets and system restoration costs as a reduction of the amount authorized to be financed utilizing the securitization process authorized by Act 55, as supplemented by Act 293, from $1.657 billion to $1.491 billion. These modifications did not affect the LPSC’s conclusion that all system restoration costs sought by Entergy Louisiana were reasonable and prudent. In February 2023 the Louisiana Bond Commission voted to authorize the Louisiana Local Government Environmental Facilities and Community Development Authority (LCDA), a political subdivision of the State of Louisiana, to issue the bonds authorized in the LPSC’s financing order.

In March 2023 the Hurricane Ida securitization financing closed, resulting in the issuance of approximately $1.491 billion principal amount of bonds by the LCDA and a remaining regulatory asset of $180 million to be recovered through the exclusion of the accumulated deferred income taxes related to the damaged assets and system restoration costs from the determination of future rates. The securitization was authorized pursuant to the Louisiana Utilities Restoration Corporation Act, Part VIII of Chapter 9 of Title 45 of the Louisiana Revised Statutes, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021. The LCDA loaned the proceeds to the LURC. Pursuant to Act 293, the LURC contributed the net bond proceeds to a State legislatively authorized and LURC-sponsored trust, Restoration Law Trust II (the storm trust II).

Pursuant to Act 293, the net proceeds of the bonds were used by the storm trust II to purchase 14,576,757.48 Class B preferred, non-voting membership interest units (the preferred membership interests) issued by Entergy Finance Company, LLC, a majority-owned indirect subsidiary of Entergy. Entergy Finance Company is required to make annual distributions (dividends) commencing on December 15, 2023 on the preferred membership interests issued to the storm trust II. These annual dividends received by the storm trust II will be distributed to Entergy Louisiana and the LURC, as beneficiaries of the storm trust II. Specifically, 1% of the annual dividends received by the storm trust II will be distributed to the LURC for the benefit of customers, and 99% will be distributed to Entergy Louisiana, net of storm trust expenses. The preferred membership interests have a stated annual cumulative cash dividend rate of 7.5% and a liquidation price of $100 per unit. The terms of the preferred membership interests include certain financial covenants to which Entergy Finance Company is subject. Semi-annual redemptions of the preferred membership interests, subject to certain conditions, are expected to occur over the next 15 years.

Entergy and Entergy Louisiana do not report the bonds issued by the LCDA on their balance sheets because the bonds are the obligation of the LCDA. The bonds are secured by system restoration property, which is the right granted by law to the LURC to collect a system restoration charge from customers. The system restoration charge is adjusted at least semi-annually to ensure that it is sufficient to service the bonds. Entergy Louisiana collects the system restoration charge on behalf of the LURC and remits the collections to the bond indenture trustee. Entergy Louisiana began collecting the system restoration charge effective with the first billing cycle of April 2023 and the system restoration charge is expected to remain in place for up to 15 years. Entergy and Entergy Louisiana do not report the collections as revenue because Entergy Louisiana is merely acting as a billing and collection agent for the LCDA and the LURC. In the remote possibility that the system restoration charge, as well as any funds in the excess subaccount and funds in the debt service reserve account, are insufficient to service the bonds resulting in a payment default, the storm trust II is required to liquidate Entergy Finance Company preferred membership interests in an amount equal to what would be required to cure the default. The estimated value of this indirect guarantee is immaterial.

From the proceeds from the issuance of the preferred membership interests, Entergy Finance Company loaned approximately $1.5 billion to Entergy, which was indirectly contributed to Entergy Louisiana as a capital contribution.

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Entergy Corporation and Subsidiaries

Management's Financial Discussion and Analysis

As discussed in Note 10 to the financial statements herein, the securitization resulted in recognition of a net reduction of income tax expense of approximately $133 million, after taking into account a provision for uncertain tax positions, by Entergy Louisiana. Entergy’s recognition of reduced income tax expense was offset by other tax charges resulting in a net reduction of income tax expense of $129 million, after taking into account a provision for uncertain tax positions. In recognition of its obligations related to an LPSC ancillary order issued as part of the securitization regulatory proceeding, Entergy Louisiana recorded in first quarter 2023 a $103 million ($76 million net-of-tax) regulatory charge and a corresponding regulatory liability to reflect its obligation to share the benefits of the securitization with customers.

As discussed in Note 3 and Note 12 to the financial statements herein, Entergy Louisiana consolidates the storm trust II as a variable interest entity and the LURC’s 1% beneficial interest is shown as noncontrolling interest in the financial statements. In first quarter 2023, Entergy Louisiana recorded a charge of $14.6 million in other income to reflect the LURC’s beneficial interest in the storm trust II.

Capital Expenditure Plans and Other Uses of Capital

See the table and discussion in the Form 10-K under “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Capital Expenditure Plans and Other Uses of Capital,” that sets forth the amounts of planned construction and other capital investments for 2023 through 2025. Following are updates to that discussion.

Renewables

Sunflower Solar

As discussed in the Form 10-K, in April 2020 the MPSC issued an order approving certification of the Sunflower Solar facility and its recovery through the interim capacity rate adjustment mechanism, subject to certain conditions. In May 2022 both Entergy Mississippi and the tax equity investor made capital contributions to the tax equity partnership that were then used to make an initial payment of $105 million for acquisition of the facility. Commercial operation at the Sunflower Solar facility commenced in September 2022. In April 2023 both Entergy Mississippi and the tax equity investor made additional capital contributions to the tax equity partnership that were then used to make the substantial completion payment of $30.4 million for acquisition of the facility. See Note 14 to the financial statements in the Form 10-K for a discussion of Entergy Mississippi’s investment in the Sunflower Solar facility.

Walnut Bend Solar

As discussed in the Form 10-K, in July 2021, the APSC directed Entergy Arkansas to file a report within 180 days detailing its efforts to obtain a tax equity partnership for the purpose of acquiring the Walnut Bend Solar facility. In January 2022, Entergy Arkansas filed its tax equity partnership status report and will file subsequent reports until a tax equity partnership is obtained or a tax equity partnership is no longer sought. The counter-party notified Entergy Arkansas that it was terminating the project, though it was willing to consider an alternative for the site. Entergy Arkansas disputed the right of termination. Negotiations were conducted, including with respect to cost and schedule and to updates arising as a result of the Inflation Reduction Act of 2022. In April 2023, Entergy Arkansas filed an application for an amended certificate of environmental compatibility and public need with the APSC seeking approval by June 2023 for the updates to the cost and schedule that were previously approved by the APSC. In June 2023, Entergy Arkansas, the APSC general staff, and the Arkansas Attorney General filed a unanimous settlement supporting that the approval of the Walnut Bend Solar facility is in the public interest based on the terms in the settlement, which relate in part to certain treatment for the production tax credits associated with the facility. In July 2023, after requesting further testimony and purporting to modify several terms in the settlement and upon rehearing, the APSC approved the settlement largely on the terms submitted, including a 30-

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Management's Financial Discussion and Analysis

year amortization period for the production tax credits. The project is currently expected to achieve commercial operation in 2024.

West Memphis Solar

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

2022 Solar Portfolio and Expansion of the Geaux Green Option

In February 2023, Entergy Louisiana filed an application with the LPSC seeking certification of the Iberville/Coastal Prairie facility, which will provide 175 MW of capacity through a PPA with a third party, and the Sterlington facility, a 49 MW self-build project located near the deactivated Sterlington power plant. Entergy Louisiana is seeking to include these within the portfolio supporting the Geaux Green Option (Rider GGO) rate schedule to help fulfill customer interest in access to renewable energy. Entergy Louisiana has requested the costs of these facilities, as offset by Rider GGO revenues, be deemed eligible for recovery in accordance with the terms of the formula rate plan and fuel adjustment clause rate mechanisms that exist at the time the facilities are placed into service. The Louisiana Energy Users Group and the Alliance for Affordable Energy have intervened, and discovery is underway. A procedural schedule has been established with a hearing scheduled for December 2023 and settlement negotiations are ongoing. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Liquidity and Capital Resources - Capital Expenditure Plans and Other Uses of Capital - Renewables - 2021 Solar Certification and the Geaux Green Option” in the Form 10-K for further discussion of the Rider GGO.

Alternative RFP and Certification

In March 2023, Entergy Louisiana made the first phase of a bifurcated filing to seek approval from the LPSC for an alternative to the requests for proposals (RFP) process that would enable the acquisition of up to 3 GW of solar resources on a faster timeline than the current RFP and certification process allows. The initial phase of the filing established the need for the acquisition of additional resources and the need for an alternative to the RFP process. The second phase of the filing, which contains the details of the proposal for the alternative competitive procurement process and the information necessary to support certification, was filed in May 2023. In addition to the acquisition of up to 3 GW of solar resources, the filing also seeks approval of a new renewable energy credits-based tariff. Several parties have intervened, and a procedural schedule was established in May 2023 with a hearing scheduled for March 2024.

System Resilience and Storm Hardening

Entergy Louisiana

As discussed in the Form 10-K, in December 2022, Entergy Louisiana filed an application with the LPSC seeking a public interest finding regarding Phase I of Entergy Louisiana’s Future Ready resilience plan and approval of a rider mechanism to recover the program’s costs. Phase I reflects the first five years of a ten-year resilience plan and includes investment of approximately $5 billion, including hardening investment, transmission dead-end

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Management's Financial Discussion and Analysis

structures, enhanced vegetation management, and telecommunications improvement. In April 2023 a procedural schedule was established with a hearing scheduled for January 2024.

The LPSC had previously opened a formal rulemaking proceeding in December 2021 to investigate efforts to improve resilience of electric utility infrastructure. In April 2023 the LPSC staff issued a draft rule in the rulemaking proceeding related to a requirement to file a grid resilience plan. The procedural schedule entered in the rulemaking proceeding contemplates adoption of a final rule in September 2023.

Entergy New Orleans

As discussed in the Form 10-K, in October 2021 the City Council passed a resolution and order establishing a docket and procedural schedule with respect to system resiliency and storm hardening. In July 2022, Entergy New Orleans filed with the City Council a response identifying a plan for storm hardening and resiliency projects, including microgrids, to be implemented over ten years at an approximate cost of $1.5 billion. In February 2023 the City Council approved a revised procedural schedule requiring Entergy New Orleans to make a filing containing a narrowed list of proposed hardening projects, with final comments on that filing due July 2023. In April 2023, Entergy New Orleans filed the required application and supporting testimony seeking City Council approval of the first phase (five years and approximately $559 million) of a ten-year infrastructure hardening plan totaling approximately $1 billion. Entergy New Orleans also sought, among other relief, City Council approval of a rider to recover from customers the costs of the infrastructure hardening plan. In July 2023, Entergy New Orleans filed comments in support of its application.

Dividends

Declarations of dividends on Entergy’s common stock are made at the discretion of the Board. Among other things, the Board evaluates the level of Entergy’s common stock dividends based upon earnings per share from the Utility operating segment and the Parent and Other portion of the business, financial strength, and future investment opportunities. At its July 2023 meeting, the Board declared a dividend of $1.07 per share, which is the same quarterly dividend per share that Entergy has paid since the third quarter 2022.

Cash Flow Activity

As shown in Entergy’s Consolidated Statements of Cash Flows, cash flows for the six months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Millions)
Cash and cash equivalents at beginning of period	$224	$443
Net cash provided by (used in):
Operating activities	1,826	816
Investing activities	(2,445)	(3,224)
Financing activities	1,589	2,545
Net increase in cash and cash equivalents	970	137
Cash and cash equivalents at end of period	$1,194	$580

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Entergy Corporation and Subsidiaries

Management's Financial Discussion and Analysis

Operating Activities

Net cash flow provided by operating activities increased $1,010 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•lower fuel costs and the timing of recovery of fuel and purchased power costs. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery;

•higher collections from Utility customers; and

•a decrease of $220 million in storm spending primarily due to Hurricane Ida restoration efforts in 2022.

The increase was partially offset by:

•an increase of $36 million in interest paid;

•income tax payments of $31 million in 2023 compared to income tax refunds of $7 million in 2022. Entergy had income tax payments in 2023 as a result of higher estimated income taxes as compared to 2022. Entergy had income tax refunds in 2022 as a result of an overpayment on a prior year state income tax return; and

•a decrease of $28 million in proceeds received from the DOE resulting from litigation regarding spent nuclear fuel storage costs that were previously expensed. See Note 1 to the financial statements herein and Note 8 to the financial statements in the Form 10-K for discussion of the spent nuclear fuel litigation.

Investing Activities

Net cash flow used in investing activities decreased $779 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•a decrease of $544 million in distribution construction expenditures primarily due to lower capital expenditures for storm restoration in 2023, partially offset by increased investment in the reliability and infrastructure of the distribution system;

•a decrease of $281 million in net payments to storm reserve escrow accounts;

•the initial payment of approximately $105 million in May 2022 as compared to the substantial completion payment of approximately $30 million in April 2023 for the purchase of the Sunflower Solar facility by the Entergy Mississippi tax equity partnership. See Note 14 to the financial statements in the Form 10-K for discussion of the Sunflower Solar facility purchase;

•cash collateral of $30 million posted in 2022 to support Entergy Texas’s obligations to MISO; and

•a decrease of $28 million in transmission construction expenditures primarily due to lower capital expenditures for storm restoration in 2023, partially offset by increased investment in the reliability and infrastructure of the transmission system.

The decrease was partially offset by an increase of $105 million in non-nuclear generation construction expenditures primarily due to higher spending on the Orange County Advanced Power Station project and an increase of $75 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2023.

Financing Activities

Net cash flow provided by financing activities decreased $956 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•proceeds from securitization of $1.5 billion received by the storm trust II at Entergy Louisiana in 2023 compared to proceeds from securitization of $3.2 billion received by the storm trust I at Entergy Louisiana in 2022; and

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Management's Financial Discussion and Analysis

•an increase of $42 million in common stock dividends paid in 2023 as a result of an increase in the dividend paid per share and an increase in the number of shares outstanding.

The decrease was partially offset by:

•long-term debt activity providing approximately $216 million of cash in 2023 compared to using approximately $442 million of cash in 2022;

•an increase of $84 million in net issuances of commercial paper in 2023 compared to 2022; and

•an increase of $60 million in prepaid deposits related to contributions-in-aid-of-construction for generation interconnection agreements as a result of higher deposits in 2023 as compared to 2022.

See Note 2 to the financial statements herein and in the Form 10-K for a discussion of the Entergy Louisiana storm cost securitizations. See Note 4 to the financial statements herein and Notes 4 and 5 to the financial statements in the Form 10-K for details of Entergy’s commercial paper program and long-term debt.

Rate, Cost-recovery, and Other Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Rate, Cost-recovery, and Other Regulation” in the Form 10-K for discussions of rate regulation, federal regulation, and related regulatory proceedings.

State and Local Rate Regulation and Fuel-Cost Recovery

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

Federal Regulation

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

Market and Credit Risk Sensitive Instruments

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Market and Credit Risk Sensitive Instruments” in the Form 10-K for a discussion of market and credit risk sensitive instruments. Following is an update to that discussion.

Some of the agreements to sell the power produced by Entergy’s non-utility operations contain provisions that require an Entergy subsidiary to provide credit support to secure its obligations under the agreements. The primary form of credit support to satisfy these requirements is an Entergy Corporation guarantee. Cash and letters of credit are also acceptable forms of credit support. At June 30, 2023, based on power prices at that time, Entergy had liquidity exposure of $11 million under the guarantees in place supporting Entergy’s non-utility operations transactions and $6 million of posted cash collateral.

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Entergy Corporation and Subsidiaries

Management's Financial Discussion and Analysis

Nuclear Matters

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Nuclear Matters” in the Form 10-K for a discussion of nuclear matters. Following is an update to that discussion.

NRC Reactor Oversight Process

As discussed in the Form 10-K, the NRC’s Reactor Oversight Process is a program to collect information about plant performance, assess the information for its safety significance, and provide for appropriate licensee and NRC response. The NRC evaluates plant performance by analyzing two distinct inputs: inspection findings resulting from the NRC’s inspection program and performance indicators reported by the licensee. The evaluations result in the placement of each plant in one of the NRC’s Reactor Oversight Process Action Matrix columns: “licensee response column,” or Column 1, “regulatory response column,” or Column 2, “degraded cornerstone column,” or Column 3, “multiple/repetitive degraded cornerstone column,” or Column 4, and “unacceptable performance,” or Column 5. Plants in Column 1 are subject to normal NRC inspection activities. Plants in Column 2, Column 3, or Column 4 are subject to progressively increasing levels of inspection by the NRC with, in general, progressively increasing levels of associated costs. Continued plant operation is not permitted for plants in Column 5. All of the nuclear generating plants owned and operated by Entergy’s Utility business are currently in Column 1, except River Bend, which is in Column 2.

In September 2022 the NRC placed Waterford 3 in Column 2 based on an error associated with a radiation monitor calibration. Entergy corrected the issue with the radiation monitor in February 2022 and also corrected a subsequent radiation monitor calibration issue. In May 2023 the NRC completed a supplemental inspection of Waterford 3 in accordance with its inspection procedures for nuclear plants in Column 2 and Waterford 3 was returned to Column 1.

In July 2023 the NRC placed River Bend in Column 2, effective April 2023, based on failure to inspect wiring associated with the high pressure core spray system. River Bend will remain in Column 2 pending successful completion of a supplemental inspection.

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’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 Note 1 to the financial statements in the Form 10-K for discussion of new accounting pronouncements.

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands, Except Share Data)
OPERATING REVENUES
Electric	$2,785,244	$3,258,255	$5,668,654	$5,914,031
Natural gas	33,503	48,008	98,084	120,369
Other	27,279	88,933	60,347	238,722
TOTAL	2,846,026	3,395,196	5,827,085	6,273,122
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	583,717	651,946	1,482,100	1,318,885
Purchased power	206,536	570,627	444,823	840,251
Nuclear refueling outage expenses	34,785	36,917	72,018	79,918
Other operation and maintenance	659,894	777,715	1,291,421	1,456,529
Asset write-offs, impairments, and related charges (credits)	—	(164,066)	—	(163,321)
Decommissioning	51,152	62,859	101,644	124,907
Taxes other than income taxes	183,578	172,244	369,015	352,392
Depreciation and amortization	468,938	444,759	922,855	883,731
Other regulatory charges (credits) - net	(98,501)	761,063	(74,827)	732,638
TOTAL	2,090,099	3,314,064	4,609,049	5,625,930
OPERATING INCOME	755,927	81,132	1,218,036	647,192
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction	24,867	13,568	48,013	29,440
Interest and investment income (loss)	45,428	(99,049)	93,687	(120,968)
Miscellaneous - net	(48,544)	35,578	(102,997)	43,182
TOTAL	21,751	(49,903)	38,703	(48,346)
INTEREST EXPENSE
Interest expense	261,349	231,613	516,678	459,235
Allowance for borrowed funds used during construction	(10,481)	(4,752)	(20,072)	(10,848)
TOTAL	250,868	226,861	496,606	448,387
INCOME (LOSS) BEFORE INCOME TAXES	526,810	(195,632)	760,133	150,459
Income taxes	134,796	(359,643)	55,821	(293,145)
CONSOLIDATED NET INCOME	392,014	164,011	704,312	443,604
Preferred dividend requirements of subsidiaries and noncontrolling interests	770	4,308	2,133	7,501
NET INCOME ATTRIBUTABLE TO ENTERGY CORPORATION	$391,244	$159,703	$702,179	$436,103
Earnings per average common share:
Basic	$1.85	$0.79	$3.32	$2.15
Diluted	$1.84	$0.78	$3.31	$2.13
Basic average number of common shares outstanding	211,449,211	203,383,199	211,400,230	203,164,628
Diluted average number of common shares outstanding	212,201,529	204,712,242	212,173,254	204,291,597
See Notes to Financial Statements.

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands)
Net Income	$392,014	$164,011	$704,312	$443,604
Other comprehensive income (loss)
Cash flow hedges net unrealized gain (net of tax expense of $—, $—, $—, and $—)	—	24	—	48
Pension and other postretirement liabilities (net of tax expense (benefit) of ($1,065), $1,642, ($335), and $4,184)	(3,292)	6,045	(1,265)	14,373
Net unrealized investment gain (loss) (net of tax expense (benefit) of $—, $3,768, $—, and ($3,453))	—	6,471	—	(5,931)
Other comprehensive income (loss)	(3,292)	12,540	(1,265)	8,490
Comprehensive Income	388,722	176,551	703,047	452,094
Preferred dividend requirements of subsidiaries and noncontrolling interests	770	4,308	2,133	7,501
Comprehensive Income Attributable to Entergy Corporation	$387,952	$172,243	$700,914	$444,593
See Notes to Financial Statements.

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	2023	2022
	(In Thousands)
OPERATING ACTIVITIES
Consolidated net income	$704,312	$443,604
Adjustments to reconcile consolidated net income to net cash flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	1,116,843	1,113,954
Deferred income taxes, investment tax credits, and non-current taxes accrued	43,502	(274,139)
Asset write-offs, impairments, and related charges (credits)	—	(163,321)
Changes in working capital:
Receivables	65,259	(224,499)
Fuel inventory	(43,493)	16,381
Accounts payable	(267,820)	42,915
Taxes accrued	(25,080)	(420)
Interest accrued	6,807	(11,947)
Deferred fuel costs	563,610	(667,247)
Other working capital accounts	(148,738)	(136,853)
Changes in provisions for estimated losses	(16,564)	295,987
Changes in other regulatory assets	391,188	724,227
Changes in other regulatory liabilities	308,058	15,788
Effect of securitization on regulatory asset	(491,150)	(1,036,955)
Changes in pension and other postretirement liabilities	(128,379)	(167,682)
Other	(252,383)	846,170
Net cash flow provided by operating activities	1,825,972	815,963
INVESTING ACTIVITIES
Construction/capital expenditures	(2,311,465)	(2,720,596)
Allowance for equity funds used during construction	48,013	29,440
Nuclear fuel purchases	(134,698)	(114,843)
Payment for purchase of assets	(30,433)	(105,149)
Net proceeds (payments) from sale of assets	11,000	(7,082)
Insurance proceeds received for property damages	6,184	—
Litigation proceeds from settlement agreement	—	9,829
Changes in securitization account	7,803	337
Payments to storm reserve escrow account	(9,080)	(1,290,314)
Receipts from storm reserve escrow account	—	1,000,218
Decrease (increase) in other investments	262	(36,057)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs	17,933	32,367
Proceeds from nuclear decommissioning trust fund sales	435,903	1,099,503
Investment in nuclear decommissioning trust funds	(486,853)	(1,121,635)
Net cash flow used in investing activities	(2,445,431)	(3,223,982)
See Notes to Financial Statements.

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	2023	2022
	(In Thousands)
FINANCING ACTIVITIES
Proceeds from the issuance of:
Long-term debt	2,489,886	3,851,061
Treasury stock	4,078	26,952
Retirement of long-term debt	(2,273,773)	(4,293,423)
Changes in credit borrowings and commercial paper - net	280,765	196,694
Capital contributions from noncontrolling interest	25,708	9,595
Proceeds received by storm trust related to securitization	1,457,676	3,163,572
Other	66,898	10,523
Dividends paid:
Common stock	(452,442)	(410,466)
Preferred stock	(9,159)	(9,159)
Net cash flow provided by financing activities	1,589,637	2,545,349
Net increase in cash and cash equivalents	970,178	137,330
Cash and cash equivalents at beginning of period	224,164	442,559
Cash and cash equivalents at end of period	$1,194,342	$579,889
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized	$490,201	$454,666
Income taxes	$31,231	($7,485)
See Notes to Financial Statements.

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$67,721	$115,290
Temporary cash investments	1,126,621	108,874
Total cash and cash equivalents	1,194,342	224,164
Accounts receivable:
Customer	646,767	788,552
Allowance for doubtful accounts	(21,840)	(30,856)
Other	213,773	241,702
Accrued unbilled revenues	591,298	495,859
Total accounts receivable	1,429,998	1,495,257
Deferred fuel costs	182,387	710,401
Fuel inventory - at average cost	191,125	147,632
Materials and supplies - at average cost	1,307,737	1,183,308
Deferred nuclear refueling outage costs	163,187	143,653
Prepayments and other	223,838	190,611
TOTAL	4,692,614	4,095,026
OTHER PROPERTY AND INVESTMENTS
Decommissioning trust funds	4,560,006	4,121,864
Non-utility property - at cost (less accumulated depreciation)	416,431	366,405
Storm reserve escrow accounts	411,035	401,955
Other	99,851	102,259
TOTAL	5,487,323	4,992,483
PROPERTY, PLANT, AND EQUIPMENT
Electric	65,268,344	64,646,911
Natural gas	705,566	691,970
Construction work in progress	2,190,958	1,844,171
Nuclear fuel	596,045	582,119
TOTAL PROPERTY, PLANT, AND EQUIPMENT	68,760,913	67,765,171
Less - accumulated depreciation and amortization	25,902,180	25,288,047
PROPERTY, PLANT, AND EQUIPMENT - NET	42,858,733	42,477,124
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets (includes securitization property of $268,738 as of June 30, 2023 and $282,886 as of December 31, 2022)	5,645,209	6,036,397
Deferred fuel costs	241,085	241,085
Goodwill	377,172	377,172
Accumulated deferred income taxes	69,912	84,100
Other	345,188	291,804
TOTAL	6,678,566	7,030,558
TOTAL ASSETS	$59,717,236	$58,595,191
See Notes to Financial Statements.

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$1,849,046	$2,309,037
Notes payable and commercial paper	1,108,386	827,621
Accounts payable	1,523,747	1,777,590
Customer deposits	434,462	424,723
Taxes accrued	399,011	424,091
Interest accrued	202,071	195,264
Deferred fuel costs	35,596	—
Pension and other postretirement liabilities	89,074	104,845
Sale-leaseback/depreciation regulatory liability	—	103,497
Other	239,889	202,779
TOTAL	5,881,282	6,369,447
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	4,871,117	4,818,837
Accumulated deferred investment tax credits	206,966	211,220
Regulatory liability for income taxes - net	1,225,578	1,258,276
Other regulatory liabilities	2,768,843	2,324,590
Decommissioning and asset retirement cost liabilities	4,383,482	4,271,531
Accumulated provisions	514,637	531,201
Pension and other postretirement liabilities	1,100,947	1,213,555
Long-term debt (includes securitization bonds of $278,134 as of June 30, 2023 and $292,760 as of December 31, 2022)	24,321,681	23,623,512
Other	855,748	688,720
TOTAL	40,248,999	38,941,442
Commitments and Contingencies
Subsidiaries' preferred stock without sinking fund	219,410	219,410
EQUITY
Preferred stock, no par value, authorized 1,000,000 shares in 2023 and 2022; issued shares in 2023 and 2022 - none	—	—
Common stock, $.01 par value, authorized 499,000,000 shares in 2023 and 2022; issued 279,653,929 shares in 2023 and 2022	2,797	2,797
Paid-in capital	7,634,305	7,632,895
Retained earnings	10,751,778	10,502,041
Accumulated other comprehensive loss	(193,019)	(191,754)
Less - treasury stock, at cost (68,199,625 shares in 2023 and 68,477,429 shares in 2022)	4,958,795	4,978,994
Total common shareholders' equity	13,237,066	12,966,985
Subsidiaries' preferred stock without sinking fund and noncontrolling interests	130,479	97,907
TOTAL	13,367,545	13,064,892
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$59,717,236	$58,595,191
See Notes to Financial Statements.

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Six Months Ended June 30, 2023
(Unaudited)
	Common Shareholders’ Equity
	Common<br>Stock	Treasury<br>Stock	Paid-in<br>Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total

Balance at December 31, 2022	$2,797	($4,978,994)	$7,632,895	$10,502,041	($191,754)	$13,064,892
Consolidated net income (a)	—	—	—	310,935	—	312,299
Other comprehensive income	—	—	—	—	2,027	2,027
Common stock issuances related to stock plans	—	19,599	(15,118)	—	—	4,481
Common stock dividends declared	—	—	—	(226,194)	—	(226,194)
Beneficial interest in storm trust	—	—	—	—	—	14,577
Distributions to noncontrolling interests	—	—	—	—	—	(574)
Preferred dividend requirements of subsidiaries (a)	—	—	—	—	—	(4,580)
Balance at March 31, 2023	$2,797	($4,959,395)	$7,617,777	$10,586,782	($189,727)	$13,166,928
Consolidated net income (a)	—	—	—	391,244	—	392,014
Other comprehensive loss	—	—	—	—	(3,292)	(3,292)
Common stock issuances related to stock plans	—	600	16,528	—	—	17,128
Common stock dividends declared	—	—	—	(226,248)	—	(226,248)
Capital contribution from noncontrolling interest	—	—	—	—	—	25,708
Distributions to noncontrolling interests	—	—	—	—	—	(113)
Preferred dividend requirements of subsidiaries (a)	—	—	—	—	—	(4,580)
Balance at June 30, 2023	$2,797	($4,958,795)	$7,634,305	$10,751,778	($193,019)	$13,367,545
See Notes to Financial Statements.
(a) Consolidated net income and preferred dividend requirements of subsidiaries for first quarter 2023 and second quarter 2023 each includes 4 million of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented as equity.

All values are in US Dollars.

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ENTERGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Six Months Ended June 30, 2022
(Unaudited)
	Common Shareholders’ Equity
	Common<br>Stock	Treasury<br>Stock	Paid-in<br>Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total

Balance at December 31, 2021	$2,720	($5,039,699)	$6,766,239	$10,240,552	($332,528)	$11,705,394
Consolidated net income (a)	—	—	—	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)
Balance at March 31, 2022	$2,720	($5,003,087)	$6,735,154	$10,311,894	($336,578)	$11,776,826
Consolidated net income (a)	—	—	—	159,703	—	164,011
Other comprehensive income	—	—	—	—	12,540	12,540
Common stock issuances related to stock plans	—	18,927	15,214	—	—	34,141
Common stock dividends declared	—	—	—	(205,408)	—	(205,408)
Beneficial interest in storm trust	—	—	—	—	—	31,636
Capital contribution from noncontrolling interest	—	—	—	—	—	9,595
Distributions to noncontrolling interests	—	—	—	—	—	(190)
Preferred dividend requirements of subsidiaries (a)	—	—	—	—	—	(4,580)
Balance at June 30, 2022	$2,720	($4,984,160)	$6,750,368	$10,266,189	($324,038)	$11,818,571
See Notes to Financial Statements.
(a) Consolidated net income and preferred dividend requirements of subsidiaries for first quarter 2022 and second quarter 2022 each includes 4 million of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented as equity.

All values are in US Dollars.

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ENTERGY CORPORATION AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. COMMITMENTS AND CONTINGENCIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax proceedings before various courts, regulatory authorities, and governmental agencies in the ordinary course of business. While management is unable to predict with certainty the outcome of such proceedings, management does not believe that the ultimate resolution of these matters will have a material adverse effect on Entergy’s results of operations, cash flows, or financial condition, except as otherwise discussed in the Form 10-K or in this report. Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and Note 10 to the financial statements herein.

Vidalia Purchased Power Agreement

See Note 8 to the financial statements in the Form 10-K for information on Entergy Louisiana’s Vidalia purchased power agreement.

ANO Damage, Outage, and NRC Reviews

See Note 8 to the financial statements in the Form 10-K for a discussion of the ANO stator incident, subsequent NRC reviews, and the deferral of replacement power costs.

Spent Nuclear Fuel Litigation

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s spent nuclear fuel litigation.

In March 2023 the DOE submitted an offer of judgment to resolve claims in the fourth round ANO damages case. The $41 million offer was accepted by Entergy Arkansas, and the U.S. Court of Federal Claims issued a judgment in that amount in favor of Entergy Arkansas and against the DOE. Entergy Arkansas received payment from the U.S. Treasury in April 2023. The effects of recording the judgment were reductions to plant, nuclear fuel expense, other operation and maintenance expense, materials and supplies, and taxes other than income taxes. The ANO damages awarded included $18 million related to costs previously recorded as plant, $10 million related to costs previously recorded as other operation and maintenance expense, $8 million related to costs previously recorded as nuclear fuel expense, $3 million related to costs previously recorded as materials and supplies, and $2 million related to costs previously recorded as taxes other than income taxes.

In July 2023 the DOE submitted an offer of judgment to resolve claims in the Indian Point Unit 2 fourth round and Unit 3 third round combined damages case. The $59 million offer was accepted by Entergy and Holtec International, as the current owner. The U.S. Court of Federal Claims issued a final judgment in that amount in favor of Holtec Indian Point 2, LLC and Holtec Indian Point 3, LLC (previously Entergy Nuclear Indian Point 2, LLC and Entergy Nuclear Indian Point 3, LLC) and against the DOE. Holtec received payment from the U.S. Treasury in July 2023. Consistent with certain terms agreed upon in connection with the sale of Indian Point Energy Center in May 2021, Holtec transferred $40 million to Entergy for its pro-rata share of the litigation proceeds in August 2023. The remainder of the judgment was retained by Holtec.

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

Nuclear Insurance

See Note 8 to the financial statements in the Form 10-K for information on nuclear liability and property insurance associated with Entergy’s nuclear power plants.

Non-Nuclear Property Insurance

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s non-nuclear property insurance program.

Employment and Labor-related Proceedings

See Note 8 to the financial statements in the Form 10-K for information on Entergy’s employment and labor-related proceedings.

Asbestos Litigation (Entergy Arkansas, Entergy Louisiana, Entergy New Orleans, and Entergy Texas)

See Note 8 to the financial statements in the Form 10-K for information regarding asbestos litigation.

Grand Gulf - Related Agreements

See Note 8 to the financial statements in the Form 10-K for information regarding Grand Gulf-related agreements.

Nelson Industrial Steam Company

Entergy Louisiana is a partner in the Nelson Industrial Steam Company (NISCO) partnership which owns two petroleum coke generating units. In April 2023 these generating units suspended operations in the MISO market, and Entergy Louisiana currently is working with the partners to wind up the NISCO partnership, which will ultimately result in ownership of the generating units transferring to Entergy Louisiana. In May 2023, Entergy Louisiana filed an application with the FERC for transaction authorization pursuant to Section 203 of the Federal Power Act. In June 2023 the LPSC filed a notice to intervene in the proceeding. Entergy Louisiana is evaluating the effect of the transaction on its results of operations, cash flows, and financial condition, but at this time does not expect the effect to be material.

NOTE 2. RATE AND REGULATORY MATTERS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Regulatory Assets and Regulatory Liabilities

See Note 2 to the financial statements in the Form 10-K for information regarding regulatory assets and regulatory liabilities in the Utility business presented on the balance sheets of Entergy and the Registrant Subsidiaries. The following are updates to that discussion.

Regulatory activity regarding the Tax Cuts and Jobs Act

System Energy

As discussed in the Form 10-K, in a filing made with the FERC in March 2018, System Energy proposed revisions to the Unit Power Sales Agreement to reflect the effects of the Tax Cuts and Jobs Act. In July 2020 the presiding ALJ in the proceeding issued an initial decision finding that there is an additional $147 million in

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

unprotected excess accumulated deferred income taxes related to System Energy’s uncertain decommissioning tax deduction. In December 2022 the FERC issued an order addressing the ALJ’s initial decision and denying System Energy’s motion to vacate the initial decision. The FERC disagreed with the ALJ’s determination that $147 million should be credited to customers in the same manner as the excess accumulated deferred income taxes addressed in System Energy’s March 2018 filing, which had included a stated amount of excess accumulated deferred income taxes to be returned pursuant to a specified methodology and had not included any excess accumulated deferred income taxes associated with the decommissioning tax position. Instead, the FERC ordered System Energy to compute the amount of excess accumulated deferred income taxes associated with the decommissioning tax position with consideration for the resolution of the tax position by the IRS. In February 2023, System Energy made the required filing with the FERC. In June 2023 the FERC issued a deficiency letter requesting additional information about the IRS’s resolution of the tax position for 2016 and 2017. In July 2023, System Energy provided the additional information.

Fuel and purchased power cost recovery

Entergy Arkansas

Energy Cost Recovery Rider

In March 2023, Entergy Arkansas filed its annual redetermination of its energy cost rate pursuant to the energy cost recovery rider, which reflected an increase from $0.01639 per kWh to $0.01883 per kWh. The primary reason for the rate increase is a large under-recovered balance as a result of higher natural gas prices in 2022 and a $32 million deferral related to the 2021 February winter storms consistent with APSC general staff’s request in 2022. The under-recovered balance included in the filing was partially offset by the proceeds of the $41.7 million refund that System Energy made to Entergy Arkansas in January 2023 related to the sale-leaseback renewal costs and depreciation litigation as calculated in System Energy’s January 2023 compliance report filed with the FERC. The redetermined rate of $0.01883 per kWh became effective with the first billing cycle in April 2023 through the normal operation of the tariff. See Note 2 to the financial statements in the Form 10-K for information on the 2021 February winter storm investigation proceeding.

Entergy Mississippi

In June 2023 the MPSC approved the joint stipulation agreement between Entergy Mississippi and the Mississippi Public Utilities Staff for Entergy Mississippi’s 2023 formula rate plan filing. The stipulation directed Entergy Mississippi to make a compliance filing to revise its power management cost adjustment factor, to revise its grid modernization cost adjustment factor, and to include a revision to reduce the net energy cost factor to a level necessary to reflect an average natural gas price of $4.50 per MMBtu. The MPSC approved the compliance filing in June 2023, effective for July 2023 bills. See “Retail Rate Proceedings - Filings with the MPSC (Entergy Mississippi) - Retail Rates - 2023 Formula Rate Plan Filing” below for further discussion of the 2023 formula rate plan filing and the joint stipulation agreement.

Entergy Texas

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

Winter Storm Uri. The PUCT staff proposed no disallowance. Entergy Texas filed rebuttal testimony in April 2023. In May 2023, Entergy Texas filed, and the ALJ with the State Office of Administrative Hearings granted, a joint motion to abate the proceeding to give parties additional time to finalize a settlement and cancelling the hearing on the merits previously scheduled for May 2023. In July 2023, Entergy Texas filed an unopposed settlement, supporting testimony, and an agreed motion to admit evidence and remand the proceeding to the PUCT. Pursuant to the unopposed settlement, Entergy Texas would receive no disallowance of fuel costs incurred over the three-year reconciliation period and retain $9.3 million in margins from off-system sales made during the reconciliation period. In July 2023 the ALJ with the State Office of Administrative Hearings granted the motion to admit evidence and remanded the proceeding to the PUCT for consideration of the unopposed settlement. A PUCT decision is expected in September 2023.

Retail Rate Proceedings

See Note 2 to the financial statements in the Form 10-K for information regarding retail rate proceedings involving the Utility operating companies. The following are updates to that discussion.

Filings with the APSC (Entergy Arkansas)

Retail Rates

2023 Formula Rate Plan Filing

In July 2023, Entergy Arkansas filed with the APSC its 2023 formula rate plan filing to set its formula rate for the 2024 calendar year. The filing contained an evaluation of Entergy Arkansas’s earnings for the projected year 2024 and a netting adjustment for the historical year 2022. The filing showed that Entergy Arkansas’s earned rate of return on common equity for the 2024 projected year is 8.11% resulting in a revenue deficiency of $80.5 million. The earned rate of return on common equity for the 2022 historical year was 7.29% resulting in a $49.8 million netting adjustment. The total proposed revenue change for the 2024 projected year and 2022 historical year netting adjustment is $130.3 million. By operation of the formula rate plan, Entergy Arkansas’s recovery of the revenue requirement is subject to a four percent annual revenue constraint. Because Entergy Arkansas’s revenue requirement in this filing exceeded the constraint, the resulting increase is limited to $88.6 million.

COVID-19 Orders

See Note 2 to the financial statements in the Form 10-K for discussion of APSC orders issued in light of the COVID-19 pandemic. In its 2023 formula rate plan filing, Entergy Arkansas proposed to amortize the COVID-19 regulatory asset over a ten-year period. As of June 30, 2023, Entergy Arkansas had a regulatory asset of $39 million for costs associated with the COVID-19 pandemic.

Filings with the LPSC (Entergy Louisiana)

2022 Formula Rate Plan Filing

In May 2023, Entergy Louisiana filed its formula rate plan evaluation report for its 2022 calendar year operations. The 2022 test year evaluation report produced an earned return on common equity of 8.33%, requiring an approximately $70.7 million increase to base rider revenue. Due to a cap for the 2021 and 2022 test years, however, base rider formula rate plan revenues are only being increased by approximately $4.9 million, leaving an ongoing revenue deficiency of approximately $65.9 million and providing for prospective return on common equity opportunity of approximately 8.38%. Other changes in formula rate plan revenue driven by increases in capacity costs, primarily legacy capacity costs, additions eligible for recovery through the transmission recovery mechanism and distribution recovery mechanism, and higher sales during the test period, are offset by reductions in net MISO costs as well as credits for FERC-ordered refunds. Also included in the 2022 test year distribution recovery

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Notes to Financial Statements

mechanism revenue requirement is a $6 million credit relating to the distribution recovery mechanism performance accountability standards and requirements. In total, the net increase in formula rate plan revenues, including base formula rate plan revenues inside the formula rate plan bandwidth and subject to the cap, as well as other formula rate plan revenues outside of the bandwidth, is $85.2 million.

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 April 2023, Entergy Louisiana filed an application proposing to utilize approximately $1.6 billion in certain low interest debt to generate earnings to apply toward the reduction of the COVID-19 regulatory asset, as well as to conduct additional outside right-of-way vegetation management activities and to apply to the minor storm reserve account. In that filing, Entergy Louisiana proposed to delay repayment of certain shorter-term first mortgage bonds that were issued to finance storm restoration costs until the costs could be securitized and to invest the funds that otherwise would be used to repay those bonds in the money pool to take advantage of the spread between prevailing interest rates on investments in the money pool and the interest rates on the bonds. The LPSC approved Entergy Louisiana’s requested relief in June 2023 and a subsequent filing will be required to permit the LPSC to review the COVID-19 regulatory asset. As of June 30, 2023, Entergy Louisiana had a regulatory asset of $47.8 million for costs associated with the COVID-19 pandemic.

Filings with the MPSC (Entergy Mississippi)

Retail Rates

2023 Formula Rate Plan Filing

In March 2023, Entergy Mississippi submitted its formula rate plan 2023 test year filing and 2022 look-back filing showing Entergy Mississippi’s earned return on rate base for the historical 2022 calendar year to be below the formula rate plan bandwidth and projected earned return for the 2023 calendar year to be below the formula rate plan bandwidth. The 2023 test year filing shows a $39.8 million rate increase is necessary to reset Entergy Mississippi’s earned return on rate base to the specified point of adjustment of 6.67%, within the formula rate plan bandwidth. The 2022 look-back filing compares actual 2022 results to the approved benchmark return on rate base and reflects the need for a $19.8 million temporary increase in formula rate plan revenues, including the refund of a $1.3 million over-recovery resulting from the demand-side management costs true-up for 2022. In fourth quarter 2022, Entergy Mississippi recorded a regulatory asset of $18.2 million in connection with the look-back feature of the formula rate plan to reflect that the 2022 estimated earned return was below the formula rate plan bandwidth. In accordance with the provisions of the formula rate plan, Entergy Mississippi implemented a $27.9 million interim rate increase, reflecting a cap equal to 2% of 2022 retail revenues, effective in April 2023.

In May 2023, Entergy Mississippi and the Mississippi Public Utilities Staff entered into a joint stipulation that confirmed a 2023 test year filing resulting in a total revenue increase of $26.5 million for 2023. Pursuant to the joint stipulation, Entergy Mississippi’s 2022 look-back filing reflected an earned return on rate base of 6.10% in calendar year 2022, which is below the look-back bandwidth, resulting in a $19.0 million increase in the formula rate plan revenues on an interim basis through June 2024. Entergy Mississippi recorded a regulatory credit of $0.8 million in June 2023 to reflect the increase in the look-back regulatory asset. In addition, certain long-term service agreement and conductor handling costs were authorized for realignment from the formula rate plan to the annual power management and grid modernization riders effective January 2023, resulting in regulatory credits recorded in June 2023 of $4.1 million and $4.3 million, respectively. Also, the amortization of Entergy Mississippi’s COVID-19 bad debt deferral was suspended for calendar year 2023 and will resume in 2024. In June 2023 the MPSC approved the joint stipulation with rates effective in July 2023.

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

Filings with the City Council (Entergy New Orleans)

Retail Rates

2023 Formula Rate Plan Filing

In April 2023, Entergy New Orleans submitted to the City Council its formula rate plan 2022 test year filing. The 2022 test year evaluation report produced an electric earned return on equity of 7.34% and a gas earned return on equity of 3.52% compared to the authorized return on equity for each of 9.35%. Entergy New Orleans seeks approval of a $25.6 million rate increase based on the formula set by the City Council in the 2018 rate case. The formula results in an increase in authorized electric revenues of $17.4 million and an increase in authorized gas revenues of $8.2 million. Entergy New Orleans also seeks to commence collecting $3.4 million in electric revenues that were previously approved by the City Council for collection through the formula rate plan. The filing was subject to review by the City Council and other parties over a 75-day review period. In July 2023, Entergy New Orleans filed a report to decrease its requested formula rate plan revenues by approximately $0.5 million to account for minor errors discovered after the filing. The City Council advisors issued a report seeking a reduction in requested formula rate plan revenues of approximately $8.3 million, combined for electric and gas, due to alleged errors. The City Council advisors proposed additional rate mitigation in the amount of $12 million through offsets to the formula rate plan rate increase by certain regulatory liabilities. The parties have until August 9, 2023 to reach an agreement on the final amount of the formula rate plan revenue increase. If no agreement is reached, Entergy New Orleans has the right to implement its requested rate subject to final resolution through a subsequent litigated proceeding. Resulting rates will be effective with the first billing cycle of September 2023 pursuant to the formula rate plan tariff. For any disputed rate adjustments, however, the City Council would set a procedural schedule that would extend the process for City Council approval of disputed rate adjustments.

Filings with the PUCT and Texas Cities (Entergy Texas)

Retail Rates

2022 Base Rate Case

As discussed in the Form 10-K, in July 2022, Entergy Texas filed a base rate case with the PUCT seeking a net increase in base rates of approximately $131.4 million. The base rate case was based on a 12-month test year ending December 31, 2021. Key drivers of the requested increase were changes in depreciation rates as the result of a depreciation study and an increase in the return on equity. In addition, Entergy Texas included capital additions placed into service for the period of January 1, 2018 through December 31, 2021, including those additions reflected in the then-effective distribution and transmission cost recovery factor riders and the generation cost recovery rider, all of which have been reset to zero as a result of this proceeding.

In May 2023, Entergy Texas filed on behalf of the parties an unopposed settlement resolving all issues in the proceeding, except for issues related to electric vehicle charging infrastructure, and Entergy Texas filed an agreed motion for interim rates, subject to refund or surcharge to the extent that the interim rates differ from the final approved rates. The unopposed settlement reflected a base rate increase to be effective and relate back to December 2022 of $54 million, exclusive of, and incremental to, the costs being realigned from the distribution and transmission cost recovery factor riders and the generation cost recovery rider and $4.8 million of rate case expenses to be recovered through a rider over a period of 36 months. The base rate increase of $54 million includes updated depreciation rates and a total annual revenue requirement of $14.5 million for the accrual of a self-insured storm reserve and the recovery of the regulatory assets for the pension and postretirement benefits expense deferral, costs associated with the COVID-19 pandemic, and retired non-advanced metering system electric meters. In May 2023 the ALJ with the State Office of Administrative Hearings granted the motion for interim rates, which became effective in June 2023. Additionally, the ALJ remanded the proceeding, except for the issues related to electric vehicle charging infrastructure, to the PUCT to consider the settlement. In June 2023 the ALJ issued a proposal for

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

decision related to the electric vehicle charging infrastructure issues and which noted recent legislation enacted which permits electric utilities to own and operate such infrastructure. The ALJ’s proposal for decision deferred to the PUCT regarding whether it is appropriate for any vertically integrated electric utility, or Entergy Texas specifically, to own electric vehicle charging infrastructure, and in the event that the PUCT decided ownership is permissible, the ALJ recommended approval of the proposed tariff to charge host customers for utility-owned and operated electric vehicle charging infrastructure sited on customer premises and denial of the proposed tariff to temporarily adjust billing demand charges for separately metered electric vehicle charging infrastructure, citing cost-shifting concerns. In July 2023 the parties filed exceptions and replies to exceptions to the proposal for decision. At its August 3, 2023 open meeting, the PUCT voted to issue a final order approving the unopposed settlement and to consider the issues related to electric vehicle charging infrastructure addressed in the ALJ’s proposal for decision in a separate future proceeding.

Generation Cost Recovery Rider

As discussed in the Form 10-K, in August 2022 the PUCT approved a unanimous settlement agreement adjusting Entergy Texas’s generation cost recovery rider to recover an annual revenue requirement of approximately $92.8 million related to Entergy Texas’s actual investment in the acquisition of the Hardin County Peaking Facility, and rates became effective. In September 2022, Entergy Texas filed a relate-back rider designed to collect over three months an additional approximately $5.7 million, which is the revenue requirement, plus carrying costs, associated with Entergy Texas’s acquisition of Hardin County Peaking Facility from June 2021 through August 2022 when the updated revenue requirement took effect. In April 2023 the PUCT approved Entergy Texas’s as-filed request with rates effective over three months beginning in May 2023.

COVID-19 Orders

As discussed in the Form 10-K, in 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 part of its 2022 base rate case filing, Entergy Texas requested recovery of its regulatory asset over a three-year period beginning December 2022. The base rate increase of $54 million in the unopposed settlement filed in the base rate case proceeding in May 2023, which is awaiting PUCT approval, includes an annual revenue requirement of $3.4 million related to recovery of the regulatory asset for costs associated with the COVID-19 pandemic. Entergy Texas began recovery of the regulatory asset with the interim increase in the annual base rate effective in June 2023.

Entergy Arkansas Opportunity Sales Proceeding

See Note 2 to the financial statements in the Form 10-K for discussion of the Entergy Arkansas opportunity sales proceeding. As discussed in the Form 10-K, in January 2023, Arkansas Electric Energy Consumers, Inc., an industrial customer association, filed a notice of appeal of the U.S. District Court for the Eastern District of Arkansas’s order denying its motion to intervene to the United States Court of Appeals for the Eighth Circuit and a motion with the district court to stay the proceedings pending the appeal, which was denied. In February 2023, Arkansas Electric Energy Consumers, Inc. filed a motion with the United States Court of Appeals for the Eighth District to stay the proceedings pending the appeal, which also was denied. The trial was held in February 2023. Following the trial, Entergy Arkansas filed a motion with the United States Court of Appeals for the Eighth District to expedite the appeal filed by Arkansas Electric Energy Consumers, Inc. The court granted Entergy Arkansas’s request, and oral arguments were held in June 2023. An order from the court is expected in 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. System Energy and the Unit Power Sales Agreement are currently the subject of several

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

litigation proceedings at the FERC, including challenges with respect to System Energy’s authorized return on equity and capital structure, renewal of its sale-leaseback arrangement, treatment of uncertain tax positions, a broader investigation of rates under the Unit Power Sales Agreement, and a prudence complaint challenging the extended power uprate completed at Grand Gulf in 2012 and the operation and management of Grand Gulf, particularly in the 2016-2020 time period. The claims in these proceedings include claims for refunds and claims for rate adjustments; the aggregate amount of refunds claimed in these proceedings substantially exceeds the net book value of System Energy. In the event of an adverse decision in one or more of these proceedings requiring the payment of substantial additional refunds, System Energy would be required to seek financing to pay such refunds which may not be available on terms acceptable to System Energy, or may not be available at all, when required. The following are updates to that discussion.

Return on Equity and Capital Structure Complaints

As discussed in the Form 10-K, in March 2021 the FERC ALJ issued an initial decision in the proceeding initiated by the LPSC, the MPSC, the APSC, and the City Council 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 $39 million, which includes interest through June 30, 2023, and the estimated resulting annual rate reduction would be approximately $28 million. As a result of the 2022 settlement agreement with the MPSC, both the estimated refund and rate reduction exclude Entergy Mississippi's portion. See “System Energy Settlement with the MPSC” in the Form 10-K for discussion of the settlement. The estimated refund will continue to accrue interest until a final FERC decision is issued.

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 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, the APSC, the MPSC, the City Council, and the FERC trial staff filed briefs on exceptions. Reply briefs opposing exceptions were filed in May 2021 by System Energy, the FERC trial staff, the LPSC, the APSC, the 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

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The three refund issues are rental expenses related to the renewal of the sale-leaseback arrangements; refunds, if any, for the revenue requirement impact of including accumulated deferred income taxes resulting from the decommissioning uncertain tax positions from 2004 through the present; and refunds for the net effect of correcting the depreciation inputs for capital additions attributable to the portion of plant subject to the sale-leaseback.

In January 2023, System Energy filed its compliance report with the FERC. With respect to the sale-leaseback renewal costs, System Energy calculated a refund of $89.8 million, which represented all of the sale-leaseback renewal rental costs that System Energy recovered in rates, with interest. With respect to the decommissioning uncertain tax position issue, System Energy calculated that no additional refunds are owed because it had already provided a one-time historical credit (for the period January 2016 through September 2020) of $25.2 million based on the accumulated deferred income taxes that resulted from the IRS’s partial acceptance of the decommissioning tax position, and because it has been providing an ongoing rate base credit for the accumulated deferred income taxes that resulted from the IRS’s partial acceptance of the decommissioning tax position since October 2020. With respect to the depreciation refund, System Energy calculated a refund of $13.7 million, which is the net total of a refund to customers for excess depreciation expense previously collected, plus interest, offset by the additional return on rate base that System Energy previously did not collect, without interest. See “System Energy Settlement with the MPSC” in the Form 10-K for discussion of the regulatory charge and corresponding regulatory liability recorded in June 2022 related to these proceedings. In January 2023, System Energy paid the refunds of $103.5 million, which included refunds of $41.7 million to Entergy Arkansas, $27.8 million to Entergy Louisiana, and $34 million to Entergy New Orleans.

In January 2023, System Energy filed a request for rehearing of the FERC’s determinations in the December 2022 order on sale-leaseback refund issues and future lease cost disallowances, the FERC’s prospective policy on uncertain tax positions, and the proper accounting of System Energy’s accumulated deferred income taxes adjustment for the Tax Cuts and Jobs Act of 2017; and a motion for confirmation of its interpretation of the December 2022 order’s remedy concerning the decommissioning tax position. In January 2023 the retail regulators filed a motion for confirmation of their interpretation of the refund requirement in the December 2022 FERC order and a provisional request for rehearing. In February 2023 the FERC issued a notice that the rehearing requests have been deemed denied by operation of law. The deemed denial of the rehearing request initiates the sixty-day period in which aggrieved parties may petition for federal appellate court review of the underlying FERC orders; however, the FERC may issue a substantive order on rehearing as long as it continues to have jurisdiction over the case. In March 2023, System Energy filed in the United States Court of Appeals for the Fifth Circuit a petition for review of the December 2022 order. In March 2023, System Energy also filed an unopposed motion to stay the proceeding in the Fifth Circuit pending the FERC’s disposition of the pending motions, and the court granted the motion to stay.

In February 2023, System Energy submitted a tariff compliance filing with the FERC to clarify that, consistent with the releases provided in the MPSC settlement, Entergy Mississippi will continue to be charged for its allocation of the sale-leaseback renewal costs under the Unit Power Sales Agreement. See “System Energy Settlement with the MPSC” in the Form 10-K for discussion of the settlement. In March 2023 the MPSC filed a protest to System Energy’s tariff compliance filing. The MPSC argues that the settlement did not specifically address post-settlement sale-leaseback renewal costs and that the sale-leaseback renewal costs may not be recovered under the Unit Power Sales Agreement. Entergy Mississippi’s allocated sale-leaseback renewal costs are estimated at $5.7 million annually for the remaining term of the sale-leaseback renewal.

LPSC 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. The following are updates to that discussion.

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Notes to Financial Statements

Unit Power Sales Agreement Complaint

As discussed in the Form 10-K, the first of the additional complaints was filed by the LPSC, the APSC, the MPSC, and the City Council in September 2020. The first complaint raises two sets of rate allegations: violations of the filed rate 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 issued an order addressing the complaint, establishing a refund effective date of September 21, 2020, establishing hearing procedures, and holding those procedures in abeyance pending the FERC’s review of the initial decision in the Grand Gulf sale-leaseback renewal complaint discussed above.

In November 2021 the LPSC, the APSC, and the City Council filed direct testimony and requested the FERC to order refunds for prior periods and prospective amendments to the Unit Power Sales Agreement. System Energy filed answering testimony in January 2022. In March 2022 the FERC trial staff filed direct and answering testimony recommending refunds and prospective modifications to the Unit Power Sales Agreement.

In April 2022, System Energy filed cross-answering testimony in response to the FERC trial staff’s recommendations. In June 2022 the FERC trial staff submitted revised answering testimony, in which it recommended additional refunds associated with the accumulated deferred income tax balances in account 190. Also in June 2022, System Energy filed revised and supplemental cross-answering testimony to respond to the FERC trial staff’s testimony and to oppose its revised recommendation.

In May 2022 the LPSC, the APSC, and the City Council filed rebuttal testimony and asserted new claims. In June 2022 a new procedural schedule was adopted, providing for additional rounds of testimony and for the hearing to begin in September 2022. The hearing concluded in December 2022. Also in December 2022, a motion to extend the briefing schedule and the May 2023 deadline for the initial decision was granted.

In November 2022, System Energy filed a partial settlement agreement with the APSC, the City Council, and the LPSC that resolves the following issues raised in the Unit Power Sales Agreement complaint: advance collection of lease payments, aircraft costs, executive incentive compensation, money pool borrowings, advertising expenses, deferred nuclear refueling outage costs, industry association dues, and termination of the capital funds agreement. The settlement provides that System Energy will provide a black-box refund of $18 million (inclusive of interest), plus additional refund amounts with interest to be calculated for certain issues to be distributed to Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans as the Utility operating companies other than Entergy Mississippi purchasing under the Unit Power Sales Agreement. The settlement further provides that if the APSC, the City Council, or the LPSC agrees to the global settlement System Energy entered into with the MPSC (see “System Energy Settlement with the MPSC” in the Form 10-K for discussion of the settlement), and such global settlement includes a black-box refund amount, then the black-box refund for this settlement agreement shall not be incremental or in addition to the global black-box refund amount. The settlement agreement addresses other matters as well, including adjustments to rate base beginning in October 2022, exclusion of certain other costs, and inclusion of money pool borrowings, if any, in short-term debt within the cost of capital calculation used in the Unit Power Sales Agreement. In April 2023 the FERC approved the settlement agreement. The refund provided for in the settlement agreement was included in the May 2023 service month bills under the Unit Power Sales Agreement.

In May 2023 the presiding ALJ issued an initial decision finding that System Energy should have excluded multiple identified categories of accumulated deferred income taxes from rate base when calculating Unit Power Sales Agreement bills. Based on this finding, the initial decision recommended refunds; System Energy estimates that those refunds for Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans would total approximately $115 million plus $142 million of interest through June 30, 2023. The initial decision also finds that the Unit Power Sales Agreement should be modified such that a cash working capital allowance of negative $36.4 million is applied prospectively. If the FERC ultimately orders these modifications to cash working capital be implemented, the estimated annual revenue requirement impact is expected to be immaterial. On the other non-settled issues for

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Notes to Financial Statements

which the complainants sought refunds or changes to the Unit Power Sales Agreement, the initial decision ruled against the complainants.

The initial decision is an interim step in the FERC litigation process, and an ALJ’s determination made in an initial decision is not controlling on the FERC. System Energy disagrees with the ALJ’s findings concerning the accumulated deferred income taxes issues and cash working capital. In July 2023, System Energy filed a brief on exceptions to the initial decision’s accumulated deferred income taxes findings. Refunds, if any, that might be required will become due only after the FERC issues its order reviewing the initial decision.

Grand Gulf Prudence Complaint

As discussed in the Form 10-K, in March 2021, the second of the additional complaints was filed at the FERC by the LPSC, the APSC, and the City Council against System Energy, Entergy Services, Entergy Operations, and Entergy Corporation. In November 2022 the FERC issued an order setting the complaint for settlement and hearing procedures. In February 2023 the FERC issued an order denying rehearing and thereby affirming its order setting the complaint for settlement and hearing procedures. In July 2023 the FERC chief ALJ terminated settlement procedures and appointed a presiding ALJ to oversee hearing procedures. The procedural schedule for the hearing has not yet been established.

Based on analysis of the pending litigation, including the May 2023 initial decision in the Unit Power Sales Agreement complaint proceeding, management determined that System Energy’s regulatory liability related to complaints against System Energy as of June 30, 2023 is adequate.

System Energy Formula Rate Annual Protocols Formal Challenge Concerning 2021 Calendar Year Bills

In March 2023, pursuant to the protocols procedures discussed in Note 2 to the financial statements in the Form 10-K, the LPSC, the APSC, and the City Council filed with the FERC a formal challenge to System Energy’s implementation of the formula rate during calendar year 2021. 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 used incorrect inputs for retained earnings that are used to determine the capital structure; (3) that the equity ratio charged in rates was excessive; and (4) that all issues in the ongoing Unit Power Sales Agreement complaint proceeding should also be reflected in calendar year 2021 bills. The first, third, and fourth allegations are identical to issues that were raised in the formal challenge to the calendar year 2020 bills. The formal challenge to the calendar year 2021 bills states that the impact of the first allegation is “tens of millions of dollars,” but it does not provide an estimate of the financial impact of the remaining allegations.

In May 2023, 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.

Unit Power Sales Agreement

As discussed in Note 2 to the financial statements in the Form 10-K, in December 2021, System Energy submitted to the FERC proposed amendments to the Unit Power Sales Agreement to adopt updated rates for use in calculating Grand Gulf plant depreciation and amortization expenses. The proposed amendments would result in higher charges to the Utility operating companies that buy capacity and energy from System Energy under the Unit Power Sales Agreement. In February 2022 the FERC accepted System Entergy’s proposed increased depreciation rates with an effective date of March 1, 2022, subject to refund pending the outcome of the settlement and/or hearing procedures. In June 2023 System Energy filed with the FERC an unopposed offer of settlement that it had negotiated with intervenors to the proceeding. If it is approved by the FERC, the settlement will fully resolve the proceeding.

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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 is an update to that discussion.

Entergy Louisiana

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

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 were 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 of $57 million through December 2022, Entergy Louisiana was seeking an LPSC determination that $2.60 billion was prudently incurred and, therefore, eligible for recovery from customers. As part of this filing, Entergy Louisiana also was seeking an LPSC determination that an additional $32 million in 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 was exclusive of the requested $3 million in carrying costs through December 2022. In total, Entergy Louisiana was requesting an LPSC determination that $2.64 billion was prudently incurred and, therefore, eligible for recovery from customers. As discussed in the Form 10-K, in March 2022 the LPSC approved financing of a $1 billion storm escrow account from which funds were withdrawn to finance costs associated with Hurricane Ida restoration. In June 2022, 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 October 2022 the LPSC staff recommended a finding that the requested storm restoration costs of $2.64 billion, including associated carrying costs of $59.1 million, were prudently incurred and eligible for recovery from customers. The LPSC staff further recommended approval of Entergy Louisiana’s plans to securitize these costs, net of the $1 billion in funds withdrawn from the storm escrow account described above. The parties negotiated and executed an uncontested stipulated settlement which was filed with the LPSC in December 2022. The settlement agreement contains the following key terms: $2.57 billion of restoration costs from Hurricane Ida, Hurricane Laura, Hurricane Delta, Hurricane Zeta, and Winter Storm Uri were prudently incurred and eligible for recovery; carrying costs of $59.2 million were recoverable; and Entergy Louisiana was authorized to finance $1.657 billion utilizing the securitization process authorized by Act 55, as supplemented by Act 293. In January 2023 the LPSC approved the stipulated settlement subject to certain modifications. These modifications include the recognition of accumulated deferred income tax benefits related to damaged assets and system restoration costs as a reduction of the amount authorized to be financed utilizing the securitization process authorized by Act 55, as supplemented by Act 293, from $1.657 billion to $1.491 billion. These modifications did not affect the LPSC’s conclusion that all system restoration costs sought by Entergy Louisiana were reasonable and prudent. In February 2023 the Louisiana Bond Commission voted to authorize the Louisiana Local Government Environmental Facilities and Community

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Notes to Financial Statements

Development Authority (LCDA), a political subdivision of the State of Louisiana, to issue the bonds authorized in the LPSC’s financing order.

In March 2023 the Hurricane Ida securitization financing closed, resulting in the issuance of approximately $1.491 billion principal amount of bonds by the LCDA and a remaining regulatory asset of $180 million to be recovered through the exclusion of the accumulated deferred income taxes related to damaged assets and system restoration costs from the determination of future rates. The securitization was authorized pursuant to the Louisiana Utilities Restoration Corporation Act, Part VIII of Chapter 9 of Title 45 of the Louisiana Revised Statutes, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021. The LCDA loaned the proceeds to the LURC. Pursuant to Act 293, the LURC contributed the net bond proceeds to a State legislatively authorized and LURC-sponsored trust, Restoration Law Trust II (the storm trust II).

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Notes to Financial Statements

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 June 30,
	2023			2022
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings per share
Net income attributable to Entergy Corporation	$391.2	211.4	$1.85	$159.7	203.4	$0.79
Average dilutive effect of:
Stock options		0.3	—		0.5	(0.01)
Other equity plans		0.5	(0.01)		0.5	—
Equity forwards		—	—		0.3	—
Diluted earnings per share	$391.2	212.2	$1.84	$159.7	204.7	$0.78

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.2 million for the three months ended June 30, 2023 and approximately 0.9 million for the three months ended June 30, 2022.

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

	For the Six Months Ended June 30,
	2023			2022
	(In Millions, Except Per Share Data)
	Income	Shares	$/share	Income	Shares	$/share
Basic earnings per share
Net income attributable to Entergy Corporation	$702.2	211.4	$3.32	$436.1	203.2	$2.15
Average dilutive effect of:
Stock options		0.3	—		0.5	(0.01)
Other equity plans		0.5	(0.01)		0.4	(0.01)
Equity forwards		—	—		0.2	—
Diluted earnings per share	$702.2	212.2	$3.31	$436.1	204.3	$2.13

The number of stock options not included in the calculation of diluted common shares outstanding due to their antidilutive effect was approximately 1.1 million for the six months ended June 30, 2023 and approximately 0.9 million for the six months ended June 30, 2022.

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Notes to Financial Statements

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 $1.07 for the three months ended June 30, 2023 and $1.01 for the three months ended June 30, 2022. Dividends declared per common share were $2.14 for the six months ended June 30, 2023 and $2.02 for the six months ended June 30, 2022.

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 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 $2 billion. As of June 30, 2023, shares at an aggregate gross sales price of approximately $1,126 million have been sold under the at the market equity distribution program.

During the six months ended June 30, 2023 and 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 were recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the equity forward sale agreement occurred in November 2022. The forward sale agreement required 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 was 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.

In June 2022, Entergy entered into a forward sale agreement for 2,124,086 shares of common stock. No amounts were recorded on Entergy’s balance sheet with respect to the equity offering until settlements of the equity forward sale agreement occurred in November 2022. The forward sale agreement required Entergy to, at its election prior to December 29, 2023, either (i) physically settle the transactions by issuing the total of 2,124,086 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 $116.94 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 was 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 2,124,086 shares of Entergy Corporation’s common stock. The gross sales price of these shares totaled approximately $250.9 million. In connection with the sale of these shares, Entergy paid the forward sellers fees of approximately $2.5 million, which have not been deducted from the gross sales price. Entergy did not receive any proceeds from such sales of borrowed shares.

In November 2022, Entergy physically settled its obligations under the then-outstanding forward sale agreements by delivering 7,688,419 shares of common stock in exchange for cash proceeds of $853.3 million. See Note 7 to the financial statements in the Form 10-K for discussion of the common stock issued and forward sale agreements settled under the at the market equity distribution program.

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Notes to Financial Statements

In June 2023, Entergy entered into forward sale agreements for 102,995 and 365,307 shares of common stock. No amounts have been or will be recorded on Entergy’s balance sheet with respect to the equity offerings until settlements of the equity forward sale agreements occur. The forward sale agreements require Entergy to, at its election prior to May 31, 2024 or June 28, 2024, respectively, either (i) physically settle the transactions by issuing the total of 102,995 and 365,307 shares, respectively, 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 $101.36 and $101.39 per share, respectively) or (ii) net settle the transaction in whole or in part through the delivery or receipt of cash or shares. Each 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 agreements, the forward seller, or its affiliates, borrowed from third parties and sold 102,995 and 365,307 shares, respectively, of Entergy Corporation’s common stock. The gross sales price of these shares totaled approximately $10.5 million and $37.4 million, respectively. In connection with the sale of these shares, Entergy paid the forward sellers fees of approximately $0.1 million and $0.4 million, respectively, 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 agreements, earnings per share dilution resulting from the agreements, 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 six months ended June 30, 2023 and 2022, 468,302 shares and 956,989 shares, respectively, 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 six months ended June 30, 2023, Entergy Corporation issued 277,804 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 six months ended June 30, 2023.

Retained Earnings

On July 28, 2023, Entergy Corporation’s Board of Directors declared a common stock dividend of $1.07 per share, payable on September 1, 2023 to holders of record as of August 11, 2023.

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 June 30, 2023:

	Pension and Other Postretirement Liabilities
	(In Thousands)
Beginning balance, April 1, 2023	($189,727)
Amounts reclassified from accumulated other comprehensive income (loss)	(3,292)
Net other comprehensive income (loss) for the period	(3,292)
Ending balance, June 30, 2023	($193,019)

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Notes to Financial Statements

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the three months ended June 30, 2022 by component:

	Cash flow<br>hedges<br>net<br>unrealized<br>gain (loss)	Pension<br>and<br>other<br>postretirement<br>liabilities	Net<br>unrealized<br>investment<br>gain (loss)	Total<br>Accumulated<br>Other<br>Comprehensive<br>Income (Loss)
	(In Thousands)
Beginning balance, April 1, 2022	($1,011)	($330,319)	($5,248)	($336,578)
Other comprehensive income (loss) before reclassifications	(14)	—	4,101	4,087
Amounts reclassified from accumulated other comprehensive income	38	6,045	2,370	8,453
Net other comprehensive income (loss) for the period	24	6,045	6,471	12,540
Ending balance, June 30, 2022	($987)	($324,274)	$1,223	($324,038)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2023:

	Pension and Other Postretirement Liabilities
	(In Thousands)
Beginning balance, January 1, 2023	($191,754)
Amounts reclassified from accumulated other comprehensive income (loss)	(1,265)
Net other comprehensive income (loss) for the period	(1,265)
Ending balance, June 30, 2023	($193,019)

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Notes to Financial Statements

The following table presents changes in accumulated other comprehensive income (loss) for Entergy for the six months ended June 30, 2022 by component:

	Cash flow<br>hedges<br>net<br>unrealized<br>gain (loss)	Pension<br>and<br>other<br>postretirement<br>liabilities	Net<br>unrealized<br>investment<br>gain (loss)	Total<br>Accumulated<br>Other<br>Comprehensive<br>Income (Loss)
	(In Thousands)
Beginning balance, January 1, 2022	($1,035)	($338,647)	$7,154	($332,528)
Other comprehensive income (loss) before reclassifications	(29)	—	(11,774)	(11,803)
Amounts reclassified from accumulated other comprehensive income (loss)	77	14,373	5,843	20,293
Net other comprehensive income (loss) for the period	48	14,373	(5,931)	8,490
Ending balance, June 30, 2022	($987)	($324,274)	$1,223	($324,038)

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the three months ended June 30, 2023 and 2022:

	Pension and Other<br>Postretirement Liabilities
	2023	2022
	(In Thousands)
Beginning balance, April 1,	$54,584	$7,665
Amounts reclassified from accumulated other comprehensive income (loss)	(1,773)	(491)
Net other comprehensive income (loss) for the period	(1,773)	(491)
Ending balance, June 30,	$52,811	$7,174

The following table presents changes in accumulated other comprehensive income (loss) for Entergy Louisiana for the six months ended June 30, 2023 and 2022:

	Pension and Other<br>Postretirement Liabilities
	2023	2022
	(In Thousands)
Beginning balance, January 1,	$55,370	$8,278
Amounts reclassified from accumulated other comprehensive income (loss)	(2,559)	(1,104)
Net other comprehensive income (loss) for the period	(2,559)	(1,104)
Ending balance, June 30,	$52,811	$7,174

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Notes to Financial Statements

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the three months ended June 30, 2023 and 2022 were as follows:

	Amounts reclassified <br>from AOCI
	2023	2022
	(In Thousands)
Cash flow hedges net unrealized loss
Interest rate swaps	$—	(48)
Total realized loss on cash flow hedges	—	(48)
Income taxes	—	10
Total realized loss on cash flow hedges (net of tax)	$—	(38)
Pension and other postretirement liabilities
Amortization of prior-service credit	$3,398	3,837
Amortization of net gain (loss)	1,633	(10,979)
Settlement loss	(674)	(545)
Total amortization and settlement loss	4,357	(7,687)
Income taxes	(1,065)	1,642
Total amortization and settlement loss (net of tax)	$3,292	(6,045)
Net unrealized investment loss
Realized loss	$—	(3,750)
Income taxes	—	1,380
Total realized investment loss (net of tax)	$—	(2,370)
Total reclassifications for the period (net of tax)	$3,292	(8,453)

All values are in US Dollars.

(a)These accumulated other comprehensive income (loss) components were included in the computation of net periodic pension and other postretirement cost. See Note 6 to the financial statements herein for additional details.

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Notes to Financial Statements

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy for the six months ended June 30, 2023 and 2022 were as follows:

	Amounts reclassified <br>from AOCI
	2023	2022
	(In Thousands)
Cash flow hedges net unrealized loss
Interest rate swaps	$—	(97)
Total realized loss on cash flow hedges	—	(97)
Income taxes	—	20
Total realized loss on cash flow hedges (net of tax)	$—	(77)
Pension and other postretirement liabilities
Amortization of prior-service credit	$6,795	7,674
Amortization of net gain (loss)	3,295	(24,904)
Settlement loss	(8,490)	(1,327)
Total amortization and settlement loss	1,600	(18,557)
Income taxes	(335)	4,184
Total amortization and settlement loss (net of tax)	$1,265	(14,373)
Net unrealized investment loss
Realized loss	$—	(9,245)
Income taxes	—	3,402
Total realized investment loss (net of tax)	$—	(5,843)
Total reclassifications for the period (net of tax)	$1,265	(20,293)

All values are in US Dollars.

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Notes to Financial Statements

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the three months ended June 30, 2023 and 2022 were as follows:

	Amounts reclassified<br>from AOCI
	2023	2022
	(In Thousands)
Pension and other postretirement liabilities
Amortization of prior-service credit	$951	1,158
Amortization of gain (loss)	1,564	(308)
Settlement loss	(89)	(178)
Total amortization and settlement loss	2,426	672
Income taxes	(653)	(181)
Total amortization and settlement loss (net of tax)	1,773	491
Total reclassifications for the period (net of tax)	$1,773	491

All values are in US Dollars.

Total reclassifications out of accumulated other comprehensive income (loss) (AOCI) into income for Entergy Louisiana for the six months ended June 30, 2023 and 2022 were as follows:

	Amounts reclassified<br>from AOCI
	2023	2022
	(In Thousands)
Pension and other postretirement liabilities
Amortization of prior-service credit	$1,902	2,316
Amortization of gain (loss)	3,129	(627)
Settlement loss	(1,529)	(178)
Total amortization and settlement loss	3,502	1,511
Income taxes	(943)	(407)
Total amortization and settlement loss (net of tax)	2,559	1,104
Total reclassifications for the period (net of tax)	$2,559	1,104

All values are in US Dollars.

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Notes to Financial Statements

Noncontrolling Interests

The dollar value of noncontrolling interests for Entergy Louisiana as of June 30, 2023 and December 31, 2022 is presented below:

	2023	2022
	(In Thousands)
Entergy Louisiana Noncontrolling Interests
Restoration Law Trust I (a)	$32,359	$31,735
Restoration Law Trust II (b)	14,856	—
Total Noncontrolling Interests	$47,215	$31,735

(a)See Note 12 to the financial statements herein and Note 17 to the financial statements in the Form 10-K for discussion of Restoration Law Trust I.

(b)Restoration Law Trust II (the storm trust II) was established as part of the Act 293 securitization of Entergy Louisiana’s Hurricane Ida storm restoration costs in March 2023. The storm trust II holds preferred membership interests issued by Entergy Finance Company, and Entergy Finance Company is required to make annual distributions (dividends) on the preferred membership interests. These annual dividends paid on the Entergy Finance Company preferred membership interests will be distributed 1% to the LURC and 99% to Entergy Louisiana. Entergy Louisiana, as the primary beneficiary, consolidates the storm trust II and the LURC’s 1% beneficial interest in noncontrolling interests in the consolidated financial statements for Entergy Louisiana and Entergy. See Note 2 to the financial statements herein for a discussion of the Entergy Louisiana March 2023 storm cost securitization.

NOTE 4. REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Capacity	Borrowings	Letters<br>of Credit	Capacity<br>Available
(In Millions)
$3,500	$150	$3	$3,347

Entergy Corporation’s credit facility requires Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization. Entergy is in compliance with this covenant. If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur.

Entergy Corporation has a commercial paper program with a Board-approved program limit of up to $2 billion. As of June 30, 2023, Entergy Corporation had $1,108.4 million of commercial paper outstanding. The weighted-average interest rate for the six months ended June 30, 2023 was 5.19%.

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Notes to Financial Statements

Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2023 as follows:

Company	Expiration<br>Date	Amount of<br>Facility	Interest Rate <br>(a)	Amount Drawn<br>as of<br>June 30, 2023	Letters of Credit<br>Outstanding as of <br>June 30, 2023
Entergy Arkansas	April 2024	$25 million (b)	7.02%	$—	$—
Entergy Arkansas	June 2028	$150 million (c)	6.33%	$75.0 million	$—
Entergy Louisiana	June 2028	$350 million (c)	6.45%	$—	$—
Entergy Mississippi	July 2023 (e)	$45 million (d)	6.70%	$—	$—
Entergy Mississippi	July 2023 (e)	$40 million (d)	6.70%	$—	$—
Entergy Mississippi	July 2023 (e)	$10 million (d)	6.70%	$—	$—
Entergy Mississippi	July 2025	$150 million	6.33%	$—	$—
Entergy New Orleans	June 2024	$25 million (c)	6.83%	$—	$—
Entergy Texas	June 2028	$150 million (c)	6.45%	$—	$1.1 million

(a)The interest rate is the estimated interest rate as of June 30, 2023 that would have been applied to outstanding borrowings under the facility.

(b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option.

(c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $10 million for Entergy New Orleans; and $30 million for Entergy Texas.

(d)Borrowings under the short-term Entergy Mississippi credit facilities may be secured by a security interest in its accounts receivable at Entergy Mississippi’s option.

(e)The short-term Entergy Mississippi credit facilities were terminated in July 2023.

The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant.

In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each entered into an uncommitted standby letter of credit facility as a means to post collateral to support its obligations to MISO. Following is a summary of the uncommitted standby letter of credit facilities as of June 30, 2023:

Company	Amount of <br>Uncommitted Facility	Letter of Credit Fee	Letters of Credit<br>Issued as of<br>June 30, 2023 <br>(a) (b)
Entergy Arkansas	$25 million	0.78%	$11.6 million
Entergy Louisiana	$125 million	0.78%	$20 million
Entergy Mississippi	$65 million	0.78%	$6.7 million
Entergy New Orleans	$15 million	1.625%	$1 million
Entergy Texas	$80 million	0.875%	$8.8 million

(a)As of June 30, 2023, letters of credit posted with MISO covered financial transmission right exposure of $5.9 million for Entergy Arkansas. See Note 8 to the financial statements herein for discussion of financial transmission rights.

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Notes to Financial Statements

(b)As of June 30, 2023, in addition to the $6.7 million MISO letters of credit, Entergy Mississippi had $9.2 million in non-MISO letters of credit outstanding under this facility.

The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas have FERC-authorized short-term borrowing limits effective through April 2025. The FERC-authorized short-term borrowing limit for System Energy is effective through March 2025. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy System money pool and from other internal short-term borrowing arrangements. The money pool and the other internal borrowing arrangements are intercompany borrowing arrangements designed to reduce the Utility subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following were the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of June 30, 2023 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:

	Authorized	Borrowings
	(In Millions)
Entergy Arkansas	$250	$152
Entergy Louisiana	$450	$—
Entergy Mississippi	$200	$105
Entergy New Orleans	$150	$—
Entergy Texas	$200	$—
System Energy	$200	$—

Vermont Yankee Credit Facility (Entergy Corporation)

In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. The credit facility has a borrowing capacity of $139 million and expires in December 2024. The commitment fee is currently 0.20% of the undrawn commitment amount. As of June 30, 2023, $139 million in cash borrowings were outstanding under the credit facility. The weighted-average interest rate for the six months ended June 30, 2023 was 6.28% on the drawn portion of the facility.

Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

See Note 17 to the financial statements in the Form 10-K for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of June 30, 2023:

Company	Expiration<br>Date	Amount<br>of<br>Facility	Weighted-<br> Average Interest<br> Rate on<br> Borrowings (a)	Amount<br>Outstanding as of<br>June 30, 2023
		(Dollars in Millions)
Entergy Arkansas VIE	June 2025	$80	5.93%	$22.5
Entergy Louisiana River Bend VIE	June 2025	$105	5.92%	$56.4
Entergy Louisiana Waterford VIE	June 2025	$105	5.82%	$49.8
System Energy VIE	June 2025	$120	5.79%	$37.8

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Notes to Financial Statements

(a)Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company VIEs for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company VIE for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.

The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. Each lessee is in compliance with this covenant.

The nuclear fuel company VIEs had notes payable that were included in debt on the respective balance sheets as of June 30, 2023 as follows:

Company	Description	Amount
Entergy Arkansas VIE	3.17% Series M due December 2023	$40 million
Entergy Arkansas VIE	1.84% Series N due July 2026	$90 million
Entergy Louisiana River Bend VIE	2.51% Series V due June 2027	$70 million
Entergy Louisiana Waterford VIE	3.22% Series I due December 2023	$20 million
System Energy VIE	2.05% Series K due September 2027	$90 million

In accordance with regulatory treatment, interest on the nuclear fuel company VIEs’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense.

As of June 30, 2023, Entergy Arkansas and Entergy Louisiana each had financing authorization from the FERC that extended through April 2025 and System Energy has obtained financing authorization from the FERC that extends through March 2025 for issuances by its nuclear fuel company VIEs.

Debt Issuances and Retirements

(Entergy Arkansas)

In January 2023, Entergy Arkansas issued $425 million of 5.15% Series mortgage bonds due January 2033. Entergy Arkansas used the proceeds, together with other funds, to repay, at maturity, its $250 million of 3.05% Series mortgage bonds due June 2023 and for general corporate purposes.

(Entergy Mississippi)

In May 2023, Entergy Mississippi issued $300 million of 5.0% Series mortgage bonds due September 2033. Entergy Mississippi used the proceeds, together with other funds, to repay, prior to maturity, its $250 million of 3.10% Series mortgage bonds due July 2023 and $50 million of its unsecured term loan due December 2023 and for general corporate purposes.

(Entergy New Orleans)

In May 2023, Entergy New Orleans amended its $70 million unsecured term loan credit agreement, to provide for additional borrowings of $15 million due June 2024. The amended term loan bears interest at a fixed interest rate of 6.25% payable on the unpaid principal amount, compared to the previous rate of 2.5%. Entergy New Orleans used the funds for general corporate purposes.

In July 2023, Entergy New Orleans repaid, at maturity, $100 million of 3.90% Series mortgage bonds.

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Notes to Financial Statements

(System Energy)

In March 2023, System Energy issued $325 million of 6.00% Series mortgage bonds due April 2028. System Energy used the proceeds, together with other funds, to repay, prior to maturity, its $50 million term loan due November 2023, and to repay, at maturity, its $250 million of 4.10% Series mortgage bonds due April 2023, and for general corporate purposes.

Fair Value

The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of June 30, 2023 were as follows:

	Book Value<br>of Long-Term Debt	Fair Value<br>of Long-Term Debt (a)
	(In Thousands)
Entergy	$26,170,727	$23,052,902
Entergy Arkansas	$4,438,803	$3,872,249
Entergy Louisiana	$10,687,807	$9,531,338
Entergy Mississippi	$2,328,900	$2,009,172
Entergy New Orleans	$784,810	$710,894
Entergy Texas	$2,888,075	$2,505,893
System Energy	$752,969	$693,756

(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.

The book value and the fair value of long-term debt for Entergy Corporation and the Registrant Subsidiaries as of December 31, 2022 were as follows:

	Book Value<br>of Long-Term Debt	Fair Value<br>of Long-Term Debt (a)
	(In Thousands)
Entergy	$25,932,549	$22,573,837
Entergy Arkansas	$4,166,500	$3,538,930
Entergy Louisiana	$10,698,922	$9,444,665
Entergy Mississippi	$2,331,096	$1,987,154
Entergy New Orleans	$775,632	$707,872
Entergy Texas	$2,895,913	$2,485,705
System Energy	$777,905	$702,473

(a)Fair values were classified as Level 2 in the fair value hierarchy discussed in Note 8 to the financial statements herein.

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Notes to Financial Statements

NOTE 5. STOCK-BASED COMPENSATION (Entergy Corporation)

Entergy grants stock and stock-based awards, which are described more fully in Note 12 to the financial statements in the Form 10-K. Awards under Entergy’s plans generally vest over three years.

Stock Options

Entergy granted options on 281,874 shares of its common stock under the 2019 Omnibus Incentive Plan during the first quarter 2023 with a fair value of $20.07 per option. As of June 30, 2023, there were options on 2,969,605 shares of common stock outstanding with a weighted-average exercise price of $97.42. The intrinsic value, which has no effect on net income, of the outstanding stock options is calculated by the positive difference between the weighted-average exercise price of the stock options granted and Entergy Corporation’s common stock price as of June 30, 2023. The aggregate intrinsic value of the stock options outstanding as of June 30, 2023 was $24.1 million.

The following table includes financial information for outstanding stock options for the three months ended June 30, 2023 and 2022:

	2023	2022
	(In Millions)
Compensation expense included in Entergy’s consolidated net income	$1.0	$1.2
Tax benefit recognized in Entergy’s consolidated net income	$0.3	$0.3
Compensation cost capitalized as part of fixed assets and materials and supplies	$0.6	$0.4

The following table includes financial information for outstanding stock options for the six months ended June 30, 2023 and 2022:

	2023	2022
	(In Millions)
Compensation expense included in Entergy’s consolidated net income	$2.1	$2.3
Tax benefit recognized in Entergy’s consolidated net income	$0.6	$0.6
Compensation cost capitalized as part of fixed assets and materials and supplies	$1.1	$0.8

Other Equity Awards

In January 2023 the Board approved and Entergy granted 345,983 restricted stock awards and 143,212 long-term incentive awards under the 2019 Omnibus Incentive Plan. The restricted stock awards were made effective on January 26, 2023 and were valued at $108.47 per share, which was the closing price of Entergy’s common stock on that date. Shares of restricted stock have the same dividend and voting rights as other common stock, are considered issued and outstanding shares of Entergy upon vesting, and are expensed ratably over the three-year vesting period. One-third of the restricted stock awards and accrued dividends will vest upon each anniversary of the grant date.

In addition, long-term incentive awards were also granted in the form of performance units that represent the value of, and are settled with, one share of Entergy Corporation common stock at the end of the three-year performance period, plus dividends accrued during the performance period on the number of performance units earned. To emphasize the importance of strong cash generation for the long-term health of its business, a credit measure – adjusted funds from operations/debt ratio – was selected as one of the performance measures for the 2023-2025 performance period. Performance will be measured based eighty percent on relative total shareholder return and twenty percent on the credit measure. The performance units were granted on January 26, 2023 and

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Notes to Financial Statements

eighty percent were valued at $130.65 per share based on various factors, primarily market conditions; and twenty percent were valued at $108.47 per share, the closing price of Entergy’s common stock on that date. Performance units have the same dividend rights as shares of Entergy common stock and are considered issued and outstanding shares of Entergy upon vesting. Performance units are expensed ratably over the three-year vesting period and compensation cost for the portion of the award based on cumulative adjusted earnings per share will be adjusted based on the number of units that ultimately vest. See Note 12 to the financial statements in the Form 10-K for a description of the Long-Term Performance Unit Program.

The following table includes financial information for other outstanding equity awards for the three months ended June 30, 2023 and 2022:

	2023	2022
	(In Millions)
Compensation expense included in Entergy’s consolidated net income	$10.1	$10.6
Tax benefit recognized in Entergy’s consolidated net income	$2.6	$2.7
Compensation cost capitalized as part of fixed assets and materials and supplies	$4.4	$4.3

The following table includes financial information for other outstanding equity awards for the six months ended June 30, 2023 and 2022:

	2023	2022
	(In Millions)
Compensation expense included in Entergy’s consolidated net income	$17.8	$22.0
Tax benefit recognized in Entergy’s consolidated net income	$4.6	$5.6
Compensation cost capitalized as part of fixed assets and materials and supplies	$7.6	$8.7

NOTE 6. RETIREMENT AND OTHER POSTRETIREMENT BENEFITS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Components of Qualified Net Pension Cost

Entergy’s qualified pension costs, including amounts capitalized, for the second quarters of 2023 and 2022, included the following components:

	2023	2022
	(In Thousands)
Service cost - benefits earned during the period	$25,366	$36,977
Interest cost on projected benefit obligation	74,033	52,676
Expected return on assets	(95,752)	(103,085)
Amortization of net loss	21,307	56,413
Settlement charges	7,246	22,653
Net pension costs	$32,200	$65,634

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Notes to Financial Statements

Entergy’s qualified pension costs, including amounts capitalized, for the six months ended June 30, 2023 and 2022, included the following components:

	2023	2022
	(In Thousands)
Service cost - benefits earned during the period	$51,044	$74,637
Interest cost on projected benefit obligation	149,734	103,795
Expected return on assets	(193,885)	(206,692)
Amortization of net loss	43,654	116,992
Settlement charges	145,674	22,653
Net pension costs	$196,221	$111,385

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the second quarters of 2023 and 2022, included the following components:

2023	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br> Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
	(In Thousands)
Service cost - benefits earned during the period	$4,661	$6,199	$1,456	$487	$1,090	$1,445
Interest cost on projected benefit obligation	13,917	14,944	3,824	1,669	3,162	3,435
Expected return on assets	(17,878)	(18,766)	(4,635)	(2,310)	(4,023)	(4,501)
Amortization of net loss	5,763	4,992	1,627	484	1,059	1,274
Settlement charges	1,784	2,232	88	7	592	490
Net pension cost	$8,247	$9,601	$2,360	$337	$1,880	$2,143
2022	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br> Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
---	---	---	---	---	---	---
	(In Thousands)
Service cost - benefits earned during the period	$6,699	$9,007	$2,075	$752	$1,579	$2,001
Interest cost on projected benefit obligation	9,761	10,684	2,796	1,139	2,272	2,394
Expected return on assets	(19,031)	(21,060)	(5,164)	(2,515)	(4,905)	(4,586)
Amortization of net loss	12,848	12,302	3,620	1,368	2,439	3,171
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$21,773	$15,394	$5,535	$744	$3,851	$5,003

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Notes to Financial Statements

The Registrant Subsidiaries’ qualified pension costs, including amounts capitalized, for their current and former employees for the six months ended June 30, 2023 and 2022, included the following components:

2023	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br> Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
	(In Thousands)
Service cost - benefits earned during the period	$9,410	$12,479	$2,938	$978	$2,197	$2,912
Interest cost on projected benefit obligation	28,197	30,323	7,754	3,384	6,404	6,963
Expected return on assets	(35,954)	(37,999)	(9,519)	(4,577)	(8,175)	(9,039)
Amortization of net loss	12,732	9,956	3,392	997	2,049	2,735
Settlement charges	23,958	38,230	11,743	1,700	10,270	5,290
Net pension cost	$38,343	$52,989	$16,308	$2,482	$12,745	$8,861
2022	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br> Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
---	---	---	---	---	---	---
	(In Thousands)
Service cost - benefits earned during the period	$13,557	$18,144	$4,205	$1,504	$3,211	$4,046
Interest cost on projected benefit obligation	19,078	21,183	5,474	2,278	4,447	4,732
Expected return on assets	(38,278)	(42,193)	(10,367)	(5,030)	(9,842)	(9,209)
Amortization of net loss	26,274	24,899	7,430	2,736	4,994	6,437
Settlement charges	11,496	4,461	2,208	—	2,466	2,023
Net pension cost	$32,127	$26,494	$8,950	$1,488	$5,276	$8,029

Non-Qualified Net Pension Cost

Entergy recognized $8.8 million and $7.2 million in pension cost for its non-qualified pension plans in the second quarters of 2023 and 2022, respectively. Reflected in the pension cost for non-qualified pension plans in the second quarters of 2023 and 2022, respectively, were settlement charges of $4.6 million and $2.5 million related to the payment of lump sum benefits out of the plans. Entergy recognized $18 million and $17.4 million in pension cost for its non-qualified pension plans for the six months ended June 30, 2023 and 2022, respectively. Reflected in the pension cost for non-qualified pension plans for the six months ended June 30, 2023 and 2022, respectively, were settlement charges of $9.3 million and $7.8 million related to the payment of lump sum benefits out of the plans.

The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the second quarters of 2023 and 2022:

	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New Orleans	Entergy<br>Texas
	(In Thousands)
2023	$63	$25	$87	$33	$63
2022	$71	$26	$79	$27	$88

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Notes to Financial Statements

The Registrant Subsidiaries recognized the following pension cost for their current and former employees for their non-qualified pension plans for the six months ended June 30, 2023 and 2022:

	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New Orleans	Entergy<br>Texas
	(In Thousands)
2023	$513	$52	$639	$66	$126
2022	$143	$53	$161	$56	$303

Reflected in Entergy Arkansas’ non-qualified pension costs for the six months ended June 30, 2023 were settlement charges of $379 thousand related to the payment of lump sum benefits out of the plan. Reflected in Entergy Mississippi’s non-qualified pension costs for the six months ended June 30, 2023 and 2022 were settlement charges of $453 thousand and $2 thousand, respectively, related to the payment of lump sum benefits out of the plan. Reflected in Entergy Texas’ non-qualified pension costs for the six months ended June 30, 2022 were settlement charges of $119 thousand related to the payment of lump sum benefits out of the plan.

Components of Net Other Postretirement Benefits Cost (Income)

Entergy’s other postretirement benefits income, including amounts capitalized, for the second quarters of 2023 and 2022, included the following components:

	2023	2022
	(In Thousands)
Service cost - benefits earned during the period	$3,664	$6,184
Interest cost on accumulated postretirement benefit obligation (APBO)	10,568	6,827
Expected return on assets	(9,183)	(10,855)
Amortization of prior service credit	(5,640)	(6,388)
Amortization of net (gain) loss	(2,862)	1,083
Net other postretirement benefits income	($3,453)	($3,149)

Entergy’s other postretirement benefits income, including amounts capitalized, for the six months ended June 30, 2023 and 2022, included the following components:

	2023	2022
	(In Thousands)
Service cost - benefits earned during the period	$7,328	$12,368
Interest cost on accumulated postretirement benefit obligation (APBO)	21,136	13,654
Expected return on assets	(18,366)	(21,710)
Amortization of prior service credit	(11,280)	(12,776)
Amortization of net (gain) loss	(5,724)	2,166
Net other postretirement benefits income	($6,906)	($6,298)

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The Registrant Subsidiaries’ other postretirement benefits cost (income), including amounts capitalized, for their current and former employees for the second quarters of 2023 and 2022, included the following components:

2023	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
	(In Thousands)
Service cost - benefits earned during the period	$741	$845	$220	$59	$202	$189
Interest cost on APBO	2,001	2,233	543	290	649	432
Expected return on assets	(3,778)	—	(1,179)	(1,316)	(2,194)	(634)
Amortization of prior service cost (credit)	524	(951)	(239)	(229)	(1,093)	(73)
Amortization of net (gain) loss	43	(1,764)	21	117	229	—
Net other postretirement benefits cost (income)	($469)	$363	($634)	($1,079)	($2,207)	($86)
2022	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
---	---	---	---	---	---	---
	(In Thousands)
Service cost - benefits earned during the period	$1,114	$1,408	$339	$99	$331	$310
Interest cost on APBO	1,263	1,443	350	174	399	279
Expected return on assets	(4,483)	—	(1,394)	(1,499)	(2,568)	(791)
Amortization of prior service cost (credit)	471	(1,158)	(443)	(229)	(1,093)	(80)
Amortization of net (gain) loss	218	(186)	56	(225)	162	30
Net other postretirement benefits cost (income)	($1,417)	$1,507	($1,092)	($1,680)	($2,769)	($252)

The Registrant Subsidiaries’ other postretirement benefits cost (income), including amounts capitalized, for their current and former employees for the six months ended June 30, 2023 and 2022, included the following components:

2023	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
	(In Thousands)
Service cost - benefits earned during the period	$1,482	$1,690	$440	$118	$404	$378
Interest cost on APBO	4,002	4,466	1,086	580	1,298	864
Expected return on assets	(7,556)	—	(2,358)	(2,632)	(4,388)	(1,268)
Amortization of prior service cost (credit)	1,048	(1,902)	(478)	(458)	(2,186)	(146)
Amortization of net (gain) loss	86	(3,528)	42	234	458	—
Net other postretirement benefits cost (income)	($938)	$726	($1,268)	($2,158)	($4,414)	($172)

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2022	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
	(In Thousands)
Service cost - benefits earned during the period	$2,228	$2,816	$678	$198	$662	$620
Interest cost on APBO	2,526	2,886	700	348	798	558
Expected return on assets	(8,966)	—	(2,788)	(2,998)	(5,136)	(1,582)
Amortization of prior service cost (credit)	942	(2,316)	(886)	(458)	(2,186)	(160)
Amortization of net (gain) loss	436	(372)	112	(450)	324	60
Net other postretirement benefits cost (income)	($2,834)	$3,014	($2,184)	($3,360)	($5,538)	($504)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

Entergy and Entergy Louisiana reclassified the following costs out of accumulated other comprehensive income (loss) (before taxes and including amounts capitalized) for the second quarters of 2023 and 2022:

2023	Qualified<br>Pension<br>Costs	Other<br>Postretirement<br>Costs	Non-Qualified<br>Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$3,510	($112)	$3,398
Amortization of net gain (loss)	(1,104)	2,897	(160)	1,633
Settlement loss	(310)	—	(364)	(674)
	($1,414)	$6,407	($636)	$4,357
Entergy Louisiana
Amortization of prior service credit	$—	$951	$—	$951
Amortization of net gain (loss)	(200)	1,764	—	1,564
Settlement loss	(89)	—	—	(89)
	($289)	$2,715	$—	$2,426
2022	Qualified<br>Pension<br>Costs	Other<br>Postretirement<br>Costs	Non-Qualified<br>Pension Costs	Total
---	---	---	---	---
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$4,014	($177)	$3,837
Amortization of net loss	(10,035)	(596)	(348)	(10,979)
Settlement loss	(178)	—	(367)	(545)
	($10,213)	$3,418	($892)	($7,687)
Entergy Louisiana
Amortization of prior service credit	$—	$1,158	$—	$1,158
Amortization of net gain (loss)	(493)	186	(1)	(308)
Settlement loss	(178)	—	(6)	(178)
	($671)	$1,344	($1)	$672

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2023	Qualified<br>Pension<br>Costs	Other<br>Postretirement<br>Costs	Non-Qualified<br>Pension Costs	Total
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$7,020	($225)	$6,795
Amortization of net gain (loss)	(2,144)	5,796	(357)	3,295
Settlement loss	(6,957)	—	(1,533)	(8,490)
	($9,101)	$12,816	($2,115)	$1,600
Entergy Louisiana
Amortization of prior service credit	$—	$1,902	$—	$1,902
Amortization of net gain (loss)	(398)	3,528	(1)	3,129
Settlement loss	(1,529)	—	—	(1,529)
	($1,927)	$5,430	($1)	$3,502
2022	Qualified<br>Pension<br>Costs	Other<br>Postretirement<br>Costs	Non-Qualified<br>Pension Costs	Total
---	---	---	---	---
	(In Thousands)
Entergy
Amortization of prior service (cost) credit	$—	$8,028	($354)	$7,674
Amortization of net loss	(22,945)	(1,192)	(767)	(24,904)
Settlement loss	(178)	—	(1,149)	(1,327)
	($23,123)	$6,836	($2,270)	($18,557)
Entergy Louisiana
Amortization of prior service credit	$—	$2,316	$—	$2,316
Amortization of net gain (loss)	(997)	372	(2)	(627)
	($1,175)	$2,688	($2)	$1,511

Accounting for Pension and Other Postretirement Benefits

In accordance with ASU No. 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” the other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations and are presented by Entergy in miscellaneous - net in other income.

Qualified Pension Settlement Costs

Year-to-date lump sum benefit payments from the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees exceeded the sum of the Plans’ 2023 service and interest cost, resulting in settlement costs. In accordance with accounting standards, settlement accounting requires immediate recognition of the portion of previously unrecognized losses associated with the settled portion of the plan’s pension liability. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy each participate in one or both of the Entergy Corporation Retirement Plan for Bargaining Employees and the Entergy Corporation Retirement Plan for Non-Bargaining Employees and incurred settlement costs. Similar to other pension costs, the settlement costs were

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included with employee labor costs and charged to expense and capital in the same manner that labor costs were charged. Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans each received regulatory approval to defer the expense portion of the settlement costs, with future amortization of the deferred settlement expense over the period in which the expense otherwise would be recorded had the immediate recognition not occurred.

Entergy Texas Reserve

In September 2020, Entergy Texas elected to establish a reserve, in accordance with PUCT regulations, for the difference between the amount recorded for pension and other postretirement benefits expense under generally accepted accounting principles during 2019, the first year that rates from Entergy Texas’s last general rate proceeding were in effect, and the annual amount of actuarially determined pension and other postretirement benefits chargeable to Entergy Texas’s expense. The reserve amounts recorded for 2020 and 2021 were included in the base rate case that was filed with the PUCT in July 2022, and amortization of that amount began in 2023 when interim rates became effective. At June 30, 2023, the balance in this reserve was approximately $39.2 million.

Employer Contributions

Based on current assumptions, Entergy expects to contribute $267 million to its qualified pension plans in 2023. As of June 30, 2023, Entergy had contributed $91.5 million to its pension plans. Based on current assumptions, the Registrant Subsidiaries expect to contribute the following to qualified pension plans for their employees in 2023:

	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New Orleans	Entergy<br>Texas	System<br>Energy
	(In Thousands)
Expected 2023 pension contributions	$54,468	$44,565	$21,110	$1,420	$5,314	$15,543
Pension contributions made through June 2023	$18,444	$13,518	$7,130	$355	$1,438	$5,529
Remaining estimated pension contributions to be made in 2023	$36,024	$31,047	$13,980	$1,065	$3,876	$10,014

NOTE 7. BUSINESS SEGMENT INFORMATION (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy has a single reportable segment, Utility, which includes the generation, transmission, distribution, and sale of electric power in portions of Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans; and operation of a small natural gas distribution business in portions of Louisiana. The Utility segment reflects management’s primary basis of organization with a predominant focus on its utility operations in the Gulf South. Parent & Other includes the parent company, Entergy Corporation, and other business activity, including Entergy’s non-utility operations business which owns interests in non-nuclear power plants that sell the electric power produced by those plants to wholesale customers and also provides decommissioning services to nuclear power plants owned by non-affiliated entities in the United States.

As discussed in Note 13 to the financial statements in the Form 10-K, Entergy completed its multi-year strategy to exit the merchant nuclear power business in 2022 and upon completion of all transition activities, effective January 1, 2023, Entergy Wholesale Commodities is no longer a reportable segment. See Note 13 and Note 14 to the financial statements in the Form 10-K for discussion of the asset impairments and restructuring charges related to the decision to exit the merchant nuclear power business. Remaining business activity previously reported under Entergy Wholesale Commodities is now included under Parent & Other. Historical segment

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financial information presented herein has been restated for the second quarter 2022 and the six months ended June 30, 2022 to reflect the change in reportable segments. The change in reportable segments had no effect on Entergy’s consolidated financial statements or historical segment financial information for the Utility reportable segment.

Entergy’s segment financial information for the second quarters of 2023 and 2022 was as follows:

	Utility	Parent & Other	Eliminations	Consolidated
	(In Thousands)
2023
Operating revenues	$2,818,747	$27,287	($8)	$2,846,026
Income taxes	$144,489	($9,693)	$—	$134,796
Consolidated net income (loss)	$514,498	($40,559)	($81,925)	$392,014
2022
Operating revenues	$3,306,269	$88,933	($6)	$3,395,196
Income taxes	($371,704)	$12,061	$—	($359,643)
Consolidated net income (loss)	$156,548	$50,714	($43,251)	$164,011

Entergy’s segment financial information for the six months ended June 30, 2023 and 2022 was as follows:

	Utility	Parent & Other	Eliminations	Consolidated
	(In Thousands)
2023
Operating revenues	$5,766,738	$60,358	($11)	$5,827,085
Income taxes	$78,363	($22,542)	$—	$55,821
Consolidated net income (loss)	$912,664	($70,953)	($137,399)	$704,312
Total assets as of June 30, 2023	$64,059,477	$855,229	($5,197,470)	$59,717,236
2022
Operating revenues	$6,034,425	$238,711	($14)	$6,273,122
Income taxes	($296,346)	$3,201	$—	($293,145)
Consolidated net income (loss)	$499,704	$19,097	($75,197)	$443,604
Total assets as of December 31, 2022	$61,399,243	$884,442	($3,688,494)	$58,595,191

Eliminations are primarily intersegment activity. Almost all of Entergy’s goodwill is related to the Utility segment.

Registrant Subsidiaries

Each of the Registrant Subsidiaries has one reportable segment, which is an integrated utility business, except for System Energy, which is an electricity generation business. Each of the Registrant Subsidiaries’ operations are managed on an integrated basis by that company because of the substantial effect of cost-based rates and regulatory oversight on the business process, cost structures, and operating results. Management allocates resources and assesses financial performance on a consolidated basis.

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NOTE 8. RISK MANAGEMENT AND FAIR VALUES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Market Risk

In the normal course of business, Entergy is exposed to a number of market risks. Market risk is the potential loss that Entergy may incur as a result of changes in the market or fair value of a particular commodity or instrument. All financial and commodity-related instruments, including derivatives, are subject to market risk including commodity price risk, equity price, and interest rate risk. Entergy uses derivatives primarily to mitigate commodity price risk, particularly power price and fuel price risk.

The Utility has limited exposure to the effects of market risk because it operates primarily under cost-based rate regulation. To the extent approved by their retail regulators, the Utility operating companies use derivative instruments to hedge the exposure to price volatility inherent in their purchased power, fuel, and gas purchased for resale costs, that are recovered from customers.

Entergy’s exposure to market risk is determined by a number of factors, including the size, term, composition, and diversification of positions held, as well as market volatility and liquidity. For instruments such as options, the time period during which the option may be exercised and the relationship between the current market price of the underlying instrument and the option’s contractual strike or exercise price also affects the level of market risk. A significant factor influencing the overall level of market risk to which Entergy is exposed is its use of hedging techniques to mitigate such risk. Hedging instruments and volumes are chosen based on ability to mitigate risk associated with future energy and capacity prices; however, other considerations are factored into hedge product and volume decisions including corporate liquidity, corporate credit ratings, counterparty credit risk, hedging costs, firm settlement risk, and product availability in the marketplace. Entergy manages market risk by actively monitoring compliance with stated risk management policies as well as monitoring the effectiveness of its hedging policies and strategies. Entergy’s risk management policies limit the amount of total net exposure and rolling net exposure during the stated periods. These policies, including related risk limits, are regularly assessed to ensure their appropriateness given Entergy’s objectives.

Derivatives

Some derivative instruments are classified as cash flow hedges due to their financial settlement provisions while others are classified as normal purchase/normal sale transactions due to their physical settlement provisions. Normal purchase/normal sale risk management tools include power purchase and sales agreements, fuel purchase agreements, capacity contracts, and tolling agreements. Financially-settled cash flow hedges can include natural gas and electricity swaps and options. Entergy may enter into financially-settled swap and option contracts to manage market risk that may or may not be designated as hedging instruments.

Entergy manages fuel price volatility for its Louisiana jurisdictions (Entergy Louisiana and Entergy New Orleans) and Entergy Mississippi through the purchase of natural gas swaps and options that financially settle against either the average Henry Hub Gas Daily prices or the NYMEX Henry Hub. These swaps and options are marked-to-market through fuel expense with offsetting regulatory assets or liabilities. All benefits or costs of the program are recorded in fuel costs. The notional volumes of these swaps are based on a portion of projected annual exposure to gas price volatility for electric generation at Entergy Louisiana and Entergy Mississippi and projected winter purchases for gas distribution at Entergy New Orleans. The maximum length of time over which Entergy has executed natural gas swaps and options as of June 30, 2023 is 9 months, for each of Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. The total volume of natural gas swaps and options outstanding as of June 30, 2023 is 21,084,400 MMBtu for Entergy, including 5,500,000 MMBtu for Entergy Louisiana, 15,305,100 MMBtu for Entergy Mississippi, and 279,300 MMBtu for Entergy New Orleans. Credit support for these natural gas swaps and options is covered by master agreements that do not require Entergy to provide collateral based on mark-to-market value, but do carry adequate assurance language that may lead to requests for collateral.

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During the second quarter 2023, Entergy participated in the annual financial transmission rights auction process for the MISO planning year of June 1, 2023 through May 31, 2024. Financial transmission rights are derivative instruments that represent economic hedges of future congestion charges that will be incurred in serving Entergy’s customer load. They are not designated as hedging instruments. Entergy initially records financial transmission rights at their estimated fair value and subsequently adjusts the carrying value to their estimated fair value at the end of each accounting period prior to settlement. Unrealized gains or losses on financial transmission rights held by Entergy’s non-utility operations are included in operating revenues. The Utility operating companies recognize regulatory liabilities or assets for unrealized gains or losses on financial transmission rights. The total volume of financial transmission rights outstanding as of June 30, 2023 is 140,203 GWh for Entergy, including 34,517 GWh for Entergy Arkansas, 60,886 GWh for Entergy Louisiana, 17,426 GWh for Entergy Mississippi, 5,439 GWh for Entergy New Orleans, and 21,597 GWh for Entergy Texas. Credit support for financial transmission rights held by the Utility operating companies is covered by cash and/or letters of credit issued by each Utility operating company as required by MISO. Credit support for financial transmission rights held by Entergy’s non-utility operations is covered by cash. No cash or letters of credit were required to be posted for financial transmission rights exposure for Entergy’s non-utility operations as of June 30, 2023 and December 31, 2022. Letters of credit posted with MISO covered the financial transmission rights exposure for Entergy Arkansas as of June 30, 2023 and for Entergy Mississippi, Entergy New Orleans, and Entergy Texas as of December 31, 2022.

The fair values of Entergy’s derivative instruments not designated as hedging instruments on the consolidated balance sheet as of June 30, 2023 and December 31, 2022 are shown in the tables below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)
		(In Millions)
2023
Assets:
Natural gas swaps and options	Prepayments and other	$2	$—	$2
Financial transmission rights	Prepayments and other	$44	($4)	$40
Liabilities:
Natural gas swaps and options	Other current liabilities	$12	$—	$12
2022
---	---	---	---	---
Assets:
Natural gas swaps and options	Prepayments and other	$13	$—	$13
Natural gas swaps and options	Other deferred debits and other assets	$3	$—	$3
Financial transmission rights	Prepayments and other	$21	($2)	$19
Liabilities:
Natural gas swaps and options	Other current liabilities	$25	$—	$25

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

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(c)Represents the net amounts of assets/liabilities presented on the Entergy Corporation and Subsidiaries’ Consolidated Balance Sheets

(d)Excludes cash collateral in the amount of $8 million posted as of December 31, 2022. Also excludes letters of credit in the amount of $6 million posted as of June 30, 2023 and $3 million posted as of December 31, 2022.

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the three months ended June 30, 2023 and 2022 were as follows:

Instrument	Income Statement<br>location		Amount of gain (loss)<br>recorded in the income statement
			(In Millions)
2023
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	(a)	($1)
Financial transmission rights	Purchased power expense	(b)	$32
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	(a)	$23
Financial transmission rights	Purchased power expense	(b)	$37

The effects of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the six months ended June 30, 2023 and 2022 were as follows:

Instrument	Income Statement<br>location		Amount of gain (loss)<br>recorded in the income statement
			(In Millions)
2023
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	(a)	($38)
Financial transmission rights	Purchased power expense	(b)	$48
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	(a)	$78
Financial transmission rights	Purchased power expense	(b)	$60

(a)Due to regulatory treatment, the natural gas swaps and options are marked-to-market through fuel, fuel-related expenses, and gas purchased for resale and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as fuel expenses when the swaps and options are settled are recovered or refunded through fuel cost recovery mechanisms.

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recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.

The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of June 30, 2023 are shown in the table below. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented in the balance sheet on a net basis in accordance with accounting guidance for derivatives and hedging.

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant
		(In Millions)
Assets:
Natural gas swaps and options	Prepayments and other	$2.1	$—	$2.1	Entergy Louisiana
Financial transmission rights	Prepayments and other	$19.8	($0.2)	$19.6	Entergy Arkansas
Financial transmission rights	Prepayments and other	$16.9	($0.2)	$16.7	Entergy Louisiana
Financial transmission rights	Prepayments and other	$2.0	($0.8)	$1.2	Entergy Mississippi
Financial transmission rights	Prepayments and other	$1.6	($0.1)	$1.5	Entergy New Orleans
Financial transmission rights	Prepayments and other	$3.5	($2.3)	$1.2	Entergy Texas
Liabilities:
Natural gas swaps	Other current liabilities	$12.6	$—	$12.6	Entergy Mississippi

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The fair values of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their balance sheets as of December 31, 2022 were as follows:

Instrument	Balance Sheet Location	Gross Fair Value (a)	Offsetting Position (b)	Net Fair Value (c) (d)	Registrant
		(In Millions)
Assets:
Natural gas swaps and options	Prepayments and other	$13.1	$—	$13.1	Entergy Louisiana
Natural gas swaps and options	Other deferred debits and other assets	$3.4	$—	$3.4	Entergy Louisiana
Financial transmission rights	Prepayments and other	$10.3	$—	$10.3	Entergy Arkansas
Financial transmission rights	Prepayments and other	$7.7	($0.4)	$7.3	Entergy Louisiana
Financial transmission rights	Prepayments and other	$0.6	$—	$0.6	Entergy Mississippi
Financial transmission rights	Prepayments and other	$0.8	$—	$0.8	Entergy New Orleans
Financial transmission rights	Prepayments and other	$1.2	($1.1)	$0.1	Entergy Texas
Liabilities:
Natural gas swaps	Other current liabilities	$24.0	$—	$24.0	Entergy Mississippi
Natural gas swaps	Other current liabilities	$1.5	$—	$1.5	Entergy New Orleans

(a)Represents the gross amounts of recognized assets/liabilities

(b)Represents the netting of fair value balances with the same counterparty

(c)Represents the net amounts of assets/liabilities presented on the Registrant Subsidiaries’ balance sheets

(d)As of June 30, 2023, letters of credit posted with MISO covered financial transmission rights exposure of $5.9 million for Entergy Arkansas. As of December 31, 2022, letters of credit posted with MISO covered financial transmission rights exposure of $0.2 million for Entergy Mississippi, $0.2 million for Entergy New Orleans, and $2.4 million for Entergy Texas.

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The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the three months ended June 30, 2023 and 2022 were as follows:

Instrument	Income Statement Location	Amount of gain<br>(loss) recorded<br>in the income statement		Registrant
		(In Millions)
2023
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$0.8	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($1.2)	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$0.1	(a)	Entergy New Orleans
Financial transmission rights	Purchased power expense	$4.1	(b)	Entergy Arkansas
Financial transmission rights	Purchased power expense	$19.5	(b)	Entergy Louisiana
Financial transmission rights	Purchased power expense	$3.0	(b)	Entergy Mississippi
Financial transmission rights	Purchased power expense	$1.5	(b)	Entergy New Orleans
Financial transmission rights	Purchased power expense	$3.5	(b)	Entergy Texas
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$8.7	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$14.6	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($0.2)	(a)	Entergy New Orleans
Financial transmission rights	Purchased power expense	$16.0	(b)	Entergy Arkansas
Financial transmission rights	Purchased power expense	$16.1	(b)	Entergy Louisiana
Financial transmission rights	Purchased power expense	$2.2	(b)	Entergy Mississippi
Financial transmission rights	Purchased power expense	$1.6	(b)	Entergy New Orleans
Financial transmission rights	Purchased power expense	$1.0	(b)	Entergy Texas

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Notes to Financial Statements

The effects of the Registrant Subsidiaries’ derivative instruments not designated as hedging instruments on their income statements for the six months ended June 30, 2023 and 2022 were as follows:

Instrument	Income Statement Location	Amount of gain<br>(loss) recorded<br>in the income statement		Registrant
		(In Millions)
2023
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	($5.7)	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($29.8)	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	($2.1)	(a)	Entergy New Orleans
Financial transmission rights	Purchased power expense	$8.0	(b)	Entergy Arkansas
Financial transmission rights	Purchased power expense	$28.3	(b)	Entergy Louisiana
Financial transmission rights	Purchased power expense	$4.5	(b)	Entergy Mississippi
Financial transmission rights	Purchased power expense	$2.4	(b)	Entergy New Orleans
Financial transmission rights	Purchased power expense	$4.2	(b)	Entergy Texas
2022
Natural gas swaps and options	Fuel, fuel-related expenses, and gas purchased for resale	$19.8	(a)	Entergy Louisiana
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$57.4	(a)	Entergy Mississippi
Natural gas swaps	Fuel, fuel-related expenses, and gas purchased for resale	$0.9	(a)	Entergy New Orleans
Financial transmission rights	Purchased power expense	$23.5	(b)	Entergy Arkansas
Financial transmission rights	Purchased power expense	$25.5	(b)	Entergy Louisiana
Financial transmission rights	Purchased power expense	$3.2	(b)	Entergy Mississippi
Financial transmission rights	Purchased power expense	$2.4	(b)	Entergy New Orleans
Financial transmission rights	Purchased power expense	$4.9	(b)	Entergy Texas

(b)Due to regulatory treatment, the changes in the estimated fair value of financial transmission rights for the Utility operating companies are recorded through purchased power expense and then such amounts are simultaneously reversed and recorded as an offsetting regulatory asset or liability. The gains or losses recorded as purchased power expense when the financial transmission rights for the Utility operating companies are settled are recovered or refunded through fuel cost recovery mechanisms.

Fair Values

The estimated fair values of Entergy’s financial instruments and derivatives are determined using historical prices, bid prices, market quotes, and financial modeling. Considerable judgment is required in developing the estimates of fair value. Therefore, estimates are not necessarily indicative of the amounts that Entergy could realize

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Notes to Financial Statements

in a current market exchange. Gains or losses realized on financial instruments are reflected in future rates and therefore do not affect net income. Entergy considers the carrying amounts of most financial instruments classified as current assets and liabilities to be a reasonable estimate of their fair value because of the short maturity of these instruments.

Accounting standards define fair value as an exit price, or the price that would be received to sell an asset or the amount that would be paid to transfer a liability in an orderly transaction between knowledgeable market participants at the date of measurement. Entergy and the Registrant Subsidiaries use assumptions or market input data that market participants would use in pricing assets or liabilities at fair value. The inputs can be readily observable, corroborated by market data, or generally unobservable. Entergy and the Registrant Subsidiaries endeavor to use the best available information to determine fair value.

Accounting standards establish a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy establishes the highest priority for unadjusted market quotes in an active market for the identical asset or liability and the lowest priority for unobservable inputs.

The three levels of the fair value hierarchy are:

•Level 1 - Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of individually owned common stocks, cash equivalents (temporary cash investments, securitization recovery trust account, and escrow accounts), debt instruments, and gas swaps traded on exchanges with active markets. Cash equivalents includes all unrestricted highly liquid debt instruments with an original or remaining maturity of three months or less at the date of purchase.

•Level 2 - Level 2 inputs are inputs other than quoted prices included in Level 1 that are, either directly or indirectly, observable for the asset or liability at the measurement date. Assets are valued based on prices derived by independent third parties that use inputs such as benchmark yields, reported trades, broker/dealer quotes, and issuer spreads. Prices are reviewed and can be challenged with the independent parties and/or overridden by Entergy if it is believed such would be more reflective of fair value. Level 2 inputs include the following:

–quoted prices for similar assets or liabilities in active markets;

–quoted prices for identical assets or liabilities in inactive markets;

–inputs other than quoted prices that are observable for the asset or liability; or

–inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 2 consists primarily of individually-owned debt instruments and gas swaps and options valued using observable inputs.

•Level 3 - Level 3 inputs are pricing inputs that are generally less observable or unobservable from objective sources. These inputs are used with internally developed methodologies to produce management’s best estimate of fair value for the asset or liability. Level 3 consists primarily of financial transmission rights.

The values of financial transmission rights are based on unobservable inputs, including estimates of congestion costs in MISO between applicable generation and load pricing nodes based on the 50th percentile of historical prices. They are classified as Level 3 assets and liabilities. The valuations of these assets and liabilities are performed by the Office of Corporate Risk Oversight. The values are calculated internally and verified against the data published by MISO. Entergy’s Accounting group reviews these valuations for reasonableness, with the

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assistance of others within the organization with knowledge of the various inputs and assumptions used in the valuation. The Office of Corporate Risk Oversight reports to the Vice President and Treasurer. The Accounting group reports to the Chief Accounting Officer.

The following tables set forth, by level within the fair value hierarchy, Entergy’s assets and liabilities that are accounted for at fair value on a recurring basis as of June 30, 2023 and December 31, 2022. The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect its placement within the fair value hierarchy levels.

2023	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$1,127	$—	$—	$1,127
Decommissioning trust funds (a):
Equity securities	19	—	—	19
Debt securities	586	1,121	—	1,707
Common trusts (b)				2,834
Securitization recovery trust account	5	—	—	5
Storm reserve escrow accounts	411	—	—	411
Gas hedge contracts	2	—	—	2
Financial transmission rights	—	—	40	40
	$2,150	$1,121	$40	$6,145
Liabilities:
Gas hedge contracts	$12	$—	$—	$12
2022	Level 1	Level 2	Level 3	Total
---	---	---	---	---
	(In Millions)
Assets:
Temporary cash investments	$109	$—	$—	$109
Decommissioning trust funds (a):
Equity securities	24	—	—	24
Debt securities	534	1,122	—	1,656
Common trusts (b)				2,442
Securitization recovery trust account	13	—	—	13
Storm reserve escrow accounts	402	—	—	402
Gas hedge contracts	13	3	—	16
Financial transmission rights	—	—	19	19
	$1,095	$1,125	$19	$4,681
Liabilities:
Gas hedge contracts	$25	$—	$—	$25

(a)The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 9 to the financial statements herein for additional information on the investment portfolios.

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(b)Common trust funds are not publicly quoted and are valued by the fund administrators using net asset value as a practical expedient. Accordingly, these funds are not assigned a level in the fair value table. The fund administrator of these investments allows daily trading at the net asset value and trades settle at a later date.

The following table sets forth a reconciliation of changes in the net assets for the fair value of financial transmission rights classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2023 and 2022:

	2023	2022
	(In Millions)
Balance as of April 1,	$7	$1
Total gains (losses) for the period
Included as a regulatory liability/asset	23	32
Issuances of financial transmission rights	42	16
Settlements	(32)	(37)
Balance as of June 30,	$40	$12

	2023	2022
	(In Millions)
Balance as of January 1,	$19	$4
Total gains (losses) for the period
Included as a regulatory liability/asset	27	52
Issuances of financial transmission rights	42	16
Settlements	(48)	(60)
Balance as of June 30,	$40	$12

The fair values of the Level 3 financial transmission rights are based on unobservable inputs calculated internally and verified against historical pricing data published by MISO.

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Notes to Financial Statements

The following tables set forth, by level within the fair value hierarchy, the Registrant Subsidiaries’ assets and liabilities that are accounted for at fair value on a recurring basis as of June 30, 2023 and December 31, 2022. The assessment of the significance of a particular input to a fair value measurement requires judgment and may affect its placement within the fair value hierarchy levels.

Entergy Arkansas

2023	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$3.9	$—	$—	$3.9
Decommissioning trust funds (a):
Equity securities	1.6	—	—	1.6
Debt securities	135.7	349.1	—	484.8
Common trusts (b)				840.2
Financial transmission rights	—	—	19.6	19.6
	$141.2	$349.1	$19.6	$1,350.1
2022	Level 1	Level 2	Level 3	Total
---	---	---	---	---
	(In Millions)
Assets:
Temporary cash investments	$3.4	$—	$—	$3.4
Decommissioning trust funds (a):
Equity securities	4.5	—	—	4.5
Debt securities	126.8	343.9	—	470.7
Common trusts (b)				724.7
Financial transmission rights	—	—	10.3	10.3
	$134.7	$343.9	$10.3	$1,213.6

Entergy Louisiana

2023	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$856.8	$—	$—	$856.8
Decommissioning trust funds (a):
Equity securities	14.4	—	—	14.4
Debt securities	249.5	503.9	—	753.4
Common trusts (b)				1,205.3
Storm reserve escrow account	300.0	—	—	300.0
Gas hedge contracts	2.1	—	—	2.1
Financial transmission rights	—	—	16.7	16.7
	$1,422.8	$503.9	$16.7	$3,148.7

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2022	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$6.3	$—	$—	$6.3
Decommissioning trust funds (a):
Equity securities	16.8	—	—	16.8
Debt securities	209.4	515.7	—	725.1
Common trusts (b)				1,037.2
Storm reserve escrow account	293.4	—	—	293.4
Gas hedge contracts	13.1	3.4	—	16.5
Financial transmission rights	—	—	7.3	7.3
	$539.0	$519.1	$7.3	$2,102.6

Entergy Mississippi

2023	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$8.4	$—	$—	$8.4
Storm reserve escrow account	34.3	—	—	34.3
Financial transmission rights	—	—	1.2	1.2
	$42.7	$—	$1.2	$43.9
Liabilities:
Gas hedge contracts	$12.6	$—	$—	$12.6
2022	Level 1	Level 2	Level 3	Total
---	---	---	---	---
	(In Millions)
Assets:
Temporary cash investments	$17.0	$—	$—	$17.0
Storm reserve escrow account	33.5	—	—	33.5
Financial transmission rights	—	—	0.6	0.6
	$50.5	$—	$0.6	$51.1
Liabilities:
Gas hedge contracts	$24.0	$—	$—	$24.0

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Notes to Financial Statements

Entergy New Orleans

2023	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$141.3	$—	$—	$141.3
Securitization recovery trust account	1.7	—	—	1.7
Storm reserve escrow account	76.7	—	—	76.7
Financial transmission rights	—	—	1.5	1.5
	$219.7	$—	$1.5	$221.2
2022	Level 1	Level 2	Level 3	Total
---	---	---	---	---
	(In Millions)
Assets:
Temporary cash investments	$4.4	$—	$—	$4.4
Securitization recovery trust account	2.2	—	—	2.2
Storm reserve escrow account	75.0	—	—	75.0
Financial transmission rights	—	—	0.8	0.8
	$81.6	$—	$0.8	$82.4
Liabilities:
Gas hedge contracts	$1.5	$—	$—	$1.5

Entergy Texas

2023	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$2.8	$—	$—	$2.8
Securitization recovery trust account	3.6	—	—	3.6
Financial transmission rights	—	—	1.2	1.2
	$6.4	$—	$1.2	$7.6
2022	Level 1	Level 2	Level 3	Total
---	---	---	---	---
	(In Millions)
Assets:
Temporary cash investments	$3.0	$—	$—	$3.0
Securitization recovery trust account	10.9	—	—	10.9
Financial transmission rights	—	—	0.1	0.1
	$13.9	$—	$0.1	$14.0

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Notes to Financial Statements

System Energy

2023	Level 1	Level 2	Level 3	Total
	(In Millions)
Assets:
Temporary cash investments	$46.2	$—	$—	$46.2
Decommissioning trust funds (a):
Equity securities	2.5	—	—	2.5
Debt securities	200.7	268.4	—	469.1
Common trusts (b)				788.7
	$249.4	$268.4	$—	$1,306.5
2022	Level 1	Level 2	Level 3	Total
---	---	---	---	---
	(In Millions)
Assets:
Temporary cash investments	$2.9	$—	$—	$2.9
Decommissioning trust funds (a):
Equity securities	2.8	—	—	2.8
Debt securities	197.5	262.2	—	459.7
Common trusts (b)				680.4
	$203.2	$262.2	$—	$1,145.8

The following table sets forth a reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2023.

	Entergy <br>Arkansas	Entergy <br>Louisiana	Entergy <br>Mississippi	Entergy <br>New <br>Orleans	Entergy <br>Texas
	(In Millions)
Balance as of April 1,	$4.0	$2.5	$0.2	$0.3	($0.1)
Issuances of financial transmission rights	20.6	18.1	1.4	1.4	0.2
Gains (losses) included as a regulatory liability/asset	(0.9)	15.6	2.6	1.3	4.6
Settlements	(4.1)	(19.5)	(3.0)	(1.5)	(3.5)
Balance as of June 30,	$19.6	$16.7	$1.2	$1.5	$1.2

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Notes to Financial Statements

The following table sets forth a reconciliation of changes in the net assets for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three months ended June 30, 2022.

	Entergy <br>Arkansas	Entergy <br>Louisiana	Entergy <br>Mississippi	Entergy <br>New <br>Orleans	Entergy <br>Texas
	(In Millions)
Balance as of April 1,	$0.4	$0.3	$0.2	$0.1	$0.5
Issuances of financial transmission rights	5.4	5.3	0.8	0.8	3.9
Gains (losses) included as a regulatory liability/asset	14.6	15.2	1.7	1.3	(1.9)
Settlements	(16.0)	(16.1)	(2.2)	(1.6)	(1.0)
Balance as of June 30,	$4.4	$4.7	$0.5	$0.6	$1.5

The following table sets forth a reconciliation of changes in the net assets for the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months ended June 30, 2023.

	Entergy <br>Arkansas	Entergy <br>Louisiana	Entergy <br>Mississippi	Entergy <br>New <br>Orleans	Entergy <br>Texas
	(In Millions)
Balance as of January 1,	$10.3	$7.3	$0.6	$0.8	$0.1
Issuances of financial transmission rights	20.6	18.1	1.4	1.4	0.2
Gains (losses) included as a regulatory liability/asset	(3.3)	19.6	3.7	1.7	5.1
Settlements	(8.0)	(28.3)	(4.5)	(2.4)	(4.2)
Balance as of June 30,	$19.6	$16.7	$1.2	$1.5	$1.2

	Entergy <br>Arkansas	Entergy <br>Louisiana	Entergy <br>Mississippi	Entergy <br>New <br>Orleans	Entergy <br>Texas
	(In Millions)
Balance as of January 1,	$2.3	$0.6	$0.3	$0.1	$0.8
Issuances of financial transmission rights	5.4	5.3	0.8	0.8	3.9
Gains (losses) included as a regulatory liability/asset	20.2	24.3	2.6	2.1	1.7
Settlements	(23.5)	(25.5)	(3.2)	(2.4)	(4.9)
Balance as of June 30,	$4.4	$4.7	$0.5	$0.6	$1.5

NOTE 9. DECOMMISSIONING TRUST FUNDS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)

The NRC requires Entergy subsidiaries to maintain nuclear decommissioning trusts to fund the costs of decommissioning ANO 1, ANO 2, River Bend, Waterford 3, and Grand Gulf. Entergy’s nuclear decommissioning trust funds invest in equity securities, fixed-rate debt securities, and cash and cash equivalents.

Entergy records decommissioning trust funds on the balance sheet at their fair value. Because of the ability of the Registrant Subsidiaries to recover decommissioning costs in rates and in accordance with the regulatory

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treatment for decommissioning trust funds, the Registrant Subsidiaries have recorded an offsetting amount of unrealized gains/(losses) on investment securities in other regulatory liabilities/assets. For the 30% interest in River Bend formerly owned by Cajun, Entergy Louisiana records an offsetting amount in other deferred credits for the unrealized trust earnings not currently expected to be needed to decommission the plant. Decommissioning trust funds for the Palisades non-utility nuclear plant did not meet the criteria for regulatory accounting treatment. Accordingly, unrealized gains/(losses) recorded on the equity securities in the trust funds were recognized in earnings. Unrealized gains recorded on the available-for-sale debt securities in the trust funds are recognized in the accumulated other comprehensive income component of shareholders’ equity. Unrealized losses (where cost exceeds fair market value) on the available-for-sale debt securities in the trust funds are also recorded in the accumulated other comprehensive income component of shareholders’ equity unless the unrealized loss is other than temporary and therefore recorded in earnings. Generally, Entergy records gains and losses on its debt and equity securities using the specific identification method to determine the cost basis of its securities.

As discussed in Note 14 to the financial statements in the Form 10-K, in June 2022, Entergy completed the sale of Palisades to Holtec. As part of the transaction, Entergy transferred the Palisades decommissioning trust fund to Holtec. The disposition-date fair value of the decommissioning trust fund was approximately $552 million.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2023 on equity securities still held as of June 30, 2023 were $211 million and $372 million, respectively. The equity securities are generally held in funds that are designed to approximate or somewhat exceed the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index or the Russell 3000 Index. The debt securities are generally held in individual government and credit issuances.

The available-for-sale securities held as of June 30, 2023 and December 31, 2022 are summarized as follows:

	Fair<br>Value	Total<br>Unrealized<br>Gains	Total<br>Unrealized<br>Losses
	(In Millions)
2023
Debt Securities	$1,707	$5	$172
2022
Debt Securities	$1,655	$4	$201

As of June 30, 2023 and December 31, 2022, there were no deferred taxes on unrealized gains/(losses). The amortized cost of available-for-sale debt securities was $1,874 million as of June 30, 2023 and $1,852 million as of December 31, 2022. As of June 30, 2023, available-for-sale debt securities had an average coupon rate of approximately 3.15%, an average duration of approximately 6.38 years, and an average maturity of approximately 10.81 years.

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Notes to Financial Statements

The fair value and gross unrealized losses of available-for-sale debt securities, summarized by length of time that the securities had been in a continuous loss position, were as follows as of June 30, 2023 and December 31, 2022:

	June 30, 2023		December 31, 2022
	Fair<br>Value	Gross<br>Unrealized<br>Losses	Fair<br>Value	Gross<br>Unrealized<br>Losses
	(In Millions)
Less than 12 months	$583	$21	$840	$63
More than 12 months	922	151	666	138
Total	$1,505	$172	$1,506	$201

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2023 and December 31, 2022 were as follows:

	2023	2022
	(In Millions)
Less than 1 year	$106	$62
1 year - 5 years	490	520
5 years - 10 years	481	461
10 years - 15 years	116	117
15 years - 20 years	156	161
20 years+	358	334
Total	$1,707	$1,655

During the three months ended June 30, 2023 and 2022, proceeds from the dispositions of available-for-sale debt securities amounted to $136 million and $333 million, respectively. During the three months ended June 30, 2023, there were no gross gains and $8 million in gross losses reclassified out of other regulatory liabilities/assets into earnings. During the three months ended June 30, 2022, there were gross gains of $1 million and gross losses of $16 million reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2023 and 2022, proceeds from the dispositions of available-for-sale debt securities amounted to $260 million and $636 million, respectively. During the six months ended June 30, 2023, there were $1 million in gross gains and $17 million in gross losses reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022, there were gross gains of $2 million and gross losses of $28 million reclassified out of other comprehensive income or other regulatory liabilities/assets into earnings.

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Notes to Financial Statements

Entergy Arkansas

Entergy Arkansas holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2023 and December 31, 2022 are summarized as follows:

	Fair<br>Value	Total<br>Unrealized<br>Gains	Total<br>Unrealized<br>Losses
	(In Millions)
2023
Debt Securities	$484.8	$0.4	$62.4
2022
Debt Securities	$470.7	$0.2	$69.3

The amortized cost of available-for-sale debt securities was $546.8 million as of June 30, 2023 and $539.8 million as of December 31, 2022. As of June 30, 2023, the available-for-sale debt securities had an average coupon rate of approximately 2.46%, an average duration of approximately 5.94 years, and an average maturity of approximately 7.43 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2023 on equity securities still held as of June 30, 2023 were $62.1 million and $109.4 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

	June 30, 2023		December 31, 2022
	Fair<br>Value	Gross<br>Unrealized<br>Losses	Fair<br>Value	Gross<br>Unrealized<br>Losses
	(In Millions)
Less than 12 months	$75.0	$2.2	$197.6	$18.8
More than 12 months	379.7	60.2	260.1	50.5
Total	$454.7	$62.4	$457.7	$69.3

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Notes to Financial Statements

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2023 and December 31, 2022 were as follows:

	2023	2022
	(In Millions)
Less than 1 year	$38.9	$21.2
1 year - 5 years	146.7	159.7
5 years - 10 years	194.7	191.7
10 years - 15 years	42.1	38.0
15 years - 20 years	42.1	42.6
20 years+	20.3	17.5
Total	$484.8	$470.7

During the three months ended June 30, 2023 and 2022, proceeds from the dispositions of available-for-sale debt securities amounted to $0.9 million and $8.8 million, respectively. During the three months ended June 30, 2023, there were no gross gains and $0.1 million in gross losses reclassified out of other regulatory liabilities/assets into earnings. During the three months ended June 30, 2022, there were gross gains of $0.03 million and gross losses of $0.3 million reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2023 and 2022, proceeds from the dispositions of available-for-sale debt securities amounted to $16.6 million and $15.9 million, respectively. During the six months ended June 30, 2023, there were no gross gains and $1.7 million in gross losses reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022, there were gross gains of $0.06 million and gross losses of $0.5 million reclassified out of other regulatory liabilities/assets into earnings.

Entergy Louisiana

Entergy Louisiana holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2023 and December 31, 2022 are summarized as follows:

	Fair<br>Value	Total<br>Unrealized<br>Gains	Total<br>Unrealized<br>Losses
	(In Millions)
2023
Debt Securities	$753.4	$3.4	$54.1
2022
Debt Securities	$725.1	$3.5	$67.5

The amortized cost of available-for-sale debt securities was $804 million as of June 30, 2023 and $789.1 million as of December 31, 2022. As of June 30, 2023, the available-for-sale debt securities had an average coupon rate of approximately 3.69%, an average duration of approximately 6.54 years, and an average maturity of approximately 13.10 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2023 on equity securities still held as of June 30, 2023 were $90.3 million and $159.6 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

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	June 30, 2023		December 31, 2022
	Fair<br>Value	Gross<br>Unrealized<br>Losses	Fair<br>Value	Gross<br>Unrealized<br>Losses
	(In Millions)
Less than 12 months	$312.5	$9.5	$409.9	$24.6
More than 12 months	302.5	44.6	207.5	42.9
Total	$615.0	$54.1	$617.4	$67.5

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2023 and December 31, 2022 were as follows:

	2023	2022
	(In Millions)
Less than 1 year	$45.6	$33.6
1 year - 5 years	153.3	159.1
5 years - 10 years	170.0	161.7
10 years - 15 years	68.9	67.1
15 years - 20 years	77.2	83.3
20 years+	238.4	220.3
Total	$753.4	$725.1

During the three months ended June 30, 2023 and 2022, proceeds from the dispositions of available-for-sale securities amounted to $65.2 million and $120.3 million, respectively. During the three months ended June 30, 2023, there were gross gains of $0.1 million and gross losses of $4 million reclassified out of other regulatory liabilities/assets into earnings. During the three months ended June 30, 2022, there were gross gains of $0.2 million, and gross losses of $6.7 million reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2023 and 2022, proceeds from the dispositions of available-for-sale debt securities amounted to $132.6 million and $240.9 million, respectively. During the six months ended June 30, 2023, there were gross gains of $0.5 million and gross losses of $9 million reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022, there were gross gains of $1.1 million, and gross losses of $12.2 million reclassified out of other regulatory liabilities/assets into earnings.

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Notes to Financial Statements

System Energy

System Energy holds equity securities and available-for-sale debt securities in nuclear decommissioning trust accounts. The available-for-sale securities held as of June 30, 2023 and December 31, 2022 are summarized as follows:

	Fair<br>Value	Total<br>Unrealized<br>Gains	Total<br>Unrealized<br>Losses
	(In Millions)
2023
Debt Securities	$469.1	$0.8	$55.1
2022
Debt Securities	$459.7	$0.7	$63.7

The amortized cost of available-for-sale debt securities was $523.4 million as of June 30, 2023 and $522.7 million as of December 31, 2022. As of June 30, 2023, the available-for-sale debt securities had an average coupon rate of approximately 2.97%, an average duration of approximately 6.56 years, and an average maturity of approximately 10.58 years.

The unrealized gains/(losses) recognized during the three and six months ended June 30, 2023 on equity securities still held as of June 30, 2023 were $58.4 million and $102.8 million, respectively. The equity securities are generally held in funds that are designed to approximate the return of the Standard & Poor’s 500 Index. A relatively small percentage of the equity securities are held in funds intended to replicate the return of the Wilshire 4500 Index.

		June 30, 2023		December 31, 2022
		Fair<br>Value	Gross<br>Unrealized<br>Losses	Fair<br>Value	Gross<br>Unrealized<br>Losses
	(In Millions)
Less than 12 months		$195.8	$9.5	$231.9	$19.2
More than 12 months		239.4	45.6	198.0	44.5
Total		$435.2	$55.1	$429.9	$63.7

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Notes to Financial Statements

The fair value of available-for-sale debt securities, summarized by contractual maturities, as of June 30, 2023 and December 31, 2022 were as follows:

	2023	2022
	(In Millions)
Less than 1 year	$21.0	$6.8
1 year - 5 years	190.1	201.7
5 years - 10 years	115.8	107.1
10 years - 15 years	4.8	11.7
15 years - 20 years	36.3	35.0
20 years+	101.1	97.4
Total	$469.1	$459.7

During the three months ended June 30, 2023 and 2022, proceeds from the dispositions of available-for-sale debt securities amounted to $69.9 million and $67.8 million, respectively. During the three months ended June 30, 2023, there were no gross gains and $4.1 million in gross losses reclassified out of other regulatory liabilities/assets into earnings. During the three months ended June 30, 2022, there were gross gains of $0.1 million and gross losses of $4.6 million reclassified out of other regulatory liabilities/assets into earnings.

During the six months ended June 30, 2023 and 2022, proceeds from the dispositions of available-for-sale debt securities amounted to $111.2 million and $104 million, respectively. During the six months ended June 30, 2023, there were no gross gains and $6.3 million in gross losses reclassified out of other regulatory liabilities/assets into earnings. During the six months ended June 30, 2022, there were gross gains of $0.2 million and gross losses of $5.3 million reclassified out of other regulatory liabilities/assets into earnings.

Allowance for expected credit losses

Entergy estimates the expected credit losses for its available-for-sale securities based on the current credit rating and remaining life of the securities. To the extent an individual security is determined to be uncollectible, it is written off against this allowance. Entergy’s available-for-sale securities are held in trusts managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Specifically, available-for-sale securities are subject to credit worthiness restrictions, with requirements for both the average credit rating of the portfolio and minimum credit ratings for individual debt securities. Entergy did not have an allowance for expected credit losses related to available-for-sale securities as of June 30, 2023 and December 31, 2022. Entergy did not record any impairments of available-for-sale debt securities for the three and six months ended June 30, 2023. Entergy did not record any impairments of available-for-sale debt securities for the three months ended June 30, 2022. Entergy recorded $1.5 million in impairments of available-for-sale debt securities for the six months ended June 30, 2022.

NOTE 10. INCOME TAXES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

See “Income Tax Audits” and “Other Tax Matters” in Note 3 to the financial statements in the Form 10-K for a discussion of income tax audits, the Tax Cuts and Jobs Act, and other income tax matters involving Entergy. The following are updates to that discussion.

Tax Cuts and Jobs Act

During the second quarter 2018, the Registrant Subsidiaries began returning unprotected excess accumulated deferred income taxes, associated with the effects of the Tax Cuts and Jobs Act, to their customers

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Notes to Financial Statements

through rate riders and other means approved by their respective regulatory authorities. Return of the unprotected excess accumulated deferred income taxes results in a reduction in the regulatory liability for income taxes and a corresponding reduction in income tax expense. This manner of regulatory accounting affects the effective tax rate for the period as compared to the statutory tax rate. There was no return of unprotected excess accumulated deferred income taxes for Entergy or the Registrant Subsidiaries for the three months ended June 30, 2023 or for the six months ended June 30, 2023. For the three months ended June 30, 2022, the return of unprotected excess accumulated deferred income taxes reduced the regulatory liability for income taxes by $16 million for Entergy, including $9 million for Entergy Louisiana and $7 million for Entergy Texas. For the six months ended June 30, 2022, the return of unprotected excess accumulated deferred income taxes reduced the regulatory liability for income taxes by $33 million for Entergy, including $18 million for Entergy Louisiana, $1 million for Entergy New Orleans, and $14 million for Entergy Texas.

Other Tax Matters

Act 293 Securitization

As described in Note 2 to the financial statements herein, Entergy Louisiana implemented a securitization authorized under Act 293 of the Louisiana Legislature’s Regular Session of 2021 in the first quarter 2023. Act 293 provides that the LURC contribute the net bond proceeds to a LURC-sponsored trust. Over the 15-year term of the Act 293 bonds, the storm trust II will make distributions to Entergy Louisiana, a beneficiary of the storm trust II, that will not be taxable to Entergy Louisiana. Additionally, Entergy Louisiana will not include the receipt of the system restoration charges in taxable income because the right to receive the system restoration charges has been granted directly to the LURC, and Entergy Louisiana only acts as an agent to collect those charges on behalf of the LURC.

Accordingly, the securitization provides for a tax accounting permanent difference resulting in a net reduction of income tax expense of approximately $133 million, after taking into account a provision for uncertain tax positions, by Entergy Louisiana. Entergy’s recognition of reduced income tax expense was offset by other tax charges resulting in a net reduction of income tax expense of $129 million, after taking into account a provision for uncertain tax positions.

In recognition of its obligations related to an LPSC ancillary order issued as part of the securitization regulatory proceeding, Entergy Louisiana recorded in first quarter 2023 a $103 million ($76 million net-of-tax) regulatory charge and a corresponding regulatory liability to reflect its obligation to share the benefits of the securitization with its customers. See Note 2 to the financial statements herein for discussion of the Entergy Louisiana March 2023 storm cost securitization.

Arkansas Corporate Income Tax Rate Change

In April 2023, Arkansas Act 532 reduced the Arkansas corporate income tax rate from 5.3% to 5.1%. As a result of the rate reduction, Entergy Arkansas accrued a regulatory liability for income taxes of approximately $8 million in the second quarter of 2023 including a gross-up for the treatment of income taxes in Entergy Arkansas’s retail and wholesale ratemaking formulas.

NOTE 11. PROPERTY, PLANT, AND EQUIPMENT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Construction Expenditures in Accounts Payable

Construction expenditures included in accounts payable at June 30, 2023 were $499 million for Entergy, $113.2 million for Entergy Arkansas, $136.1 million for Entergy Louisiana, $66.8 million for Entergy Mississippi,

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Notes to Financial Statements

$8.5 million for Entergy New Orleans, $104.6 million for Entergy Texas, and $17.7 million for System Energy. Construction expenditures included in accounts payable at December 31, 2022 were $459 million for Entergy, $93.2 million for Entergy Arkansas, $154.3 million for Entergy Louisiana, $59.5 million for Entergy Mississippi, $11.2 million for Entergy New Orleans, $68.9 million for Entergy Texas, and $29 million for System Energy.

NOTE 12. VARIABLE INTEREST ENTITIES (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

See Note 17 to the financial statements in the Form 10-K for a discussion of variable interest entities (VIEs). See Note 4 to the financial statements herein for details of the nuclear fuel companies’ credit facilities, commercial paper borrowings, and long-term debt. See Note 6 to the financial statements in the Form 10-K and Note 3 to the financial statements herein for discussion of noncontrolling interests.

Restoration Law Trust I (the storm trust I), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. As of June 30, 2023 and December 31, 2022, the primary asset held by the storm trust I was $3.1 billion and $3.2 billion, respectively, of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The LURC’s 1% beneficial interest in the storm trust I is presented as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with balances of $32.4 million as of June 30, 2023 and $31.7 million as of December 31, 2022.

Restoration Law Trust II (the storm trust II), a trust consolidated by Entergy Louisiana, is a VIE and Entergy Louisiana is the primary beneficiary. The storm trust II was established as part of the March 2023 Act 293 securitization of Entergy Louisiana’s Hurricane Ida restoration costs, less Hurricane Ida amounts previously financed in May 2022 in a prior securitization transaction. Entergy Louisiana is the primary beneficiary of the storm trust II because it was created to facilitate the financing of Entergy Louisiana’s storm restoration costs and Entergy Louisiana is entitled to receive a majority of the proceeds received by the storm trust II. As of June 30, 2023, the primary asset held by the storm trust II is the $1.5 billion of outstanding Entergy Finance Company preferred membership interests, which is reflected as an investment in affiliate preferred membership interests on the consolidated balance sheets of Entergy Louisiana. The storm trust II’s investment in affiliate preferred membership interests was purchased with the net bond proceeds of the securitization bonds issued by the LCDA. After the securitization bonds were issued, the LCDA loaned the net bond proceeds to the LURC, and pursuant to Act 293, the LURC contributed the net bond proceeds to the storm trust II. The holders of the securitization bonds do not have recourse to the assets or revenues of the storm trust II or to any Entergy affiliate and the bonds are not reflected in the consolidated balance sheets of Entergy or Entergy Louisiana. The LURC’s 1% beneficial interest in the storm trust II is presented as noncontrolling interest on the consolidated balance sheets of Entergy and Entergy Louisiana, with a balance of $14.9 million as of June 30, 2023. See Note 2 to the financial statements herein for additional discussion of the securitization bonds and the preferred membership interests.

System Energy is considered to hold a variable interest in the lessor from which it leases an undivided interest representing approximately 11.5% of the Grand Gulf nuclear plant. System Energy is the lessee under this arrangement, which is described in more detail in Note 5 to the financial statements in the Form 10-K. System Energy made payments under this arrangement, including interest, of $8.6 million in each of the six months ended June 30, 2023 and the six months ended June 30, 2022.

AR Searcy Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Arkansas is required to consolidate as it is the primary beneficiary. As of June 30, 2023, AR Searcy Partnership, LLC recorded assets equal to $137.6 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $110.8 million. As of December 31, 2022, AR Searcy Partnership, LLC recorded assets equal to $138.3 million, primarily consisting of property, plant,

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

and equipment, and the carrying value of Entergy Arkansas’s ownership interest in the partnership was approximately $109 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest.

MS Sunflower Partnership, LLC is a tax equity partnership that qualifies as a VIE, which Entergy Mississippi is required to consolidate as it is the primary beneficiary. As of June 30, 2023, MS Sunflower Partnership, LLC recorded assets equal to $163.5 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $126.4 million. As of December 31, 2022, MS Sunflower Partnership, LLC recorded assets equal to $154.5 million, primarily consisting of property, plant, and equipment, and the carrying value of Entergy Mississippi’s ownership interest in the partnership was approximately $117.2 million. The tax equity investor’s ownership interest is recorded as noncontrolling interest.

NOTE 13. REVENUE (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Operating Revenues

See Note 19 to the financial statements in the Form 10-K for a discussion of revenue recognition. Entergy’s total revenues for the three months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Thousands)
Utility:
Residential	$951,424	$1,035,063
Commercial	692,788	715,665
Industrial	750,177	878,194
Governmental	63,816	67,101
Total billed retail	2,458,205	2,696,023
Sales for resale (a)	68,262	249,035
Other electric revenues (b)	247,331	302,351
Revenues from contracts with customers	2,773,798	3,247,409
Other Utility revenues (c)	11,446	10,846
Electric revenues	2,785,244	3,258,255
Natural gas revenues	33,503	48,008
Other revenues (d)	27,279	88,933
Total operating revenues	$2,846,026	$3,395,196

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Entergy Corporation and Subsidiaries

Notes to Financial Statements

Entergy’s total revenues for the six months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Thousands)
Utility:
Residential	$1,992,883	$2,021,085
Commercial	1,407,089	1,350,290
Industrial	1,613,899	1,621,828
Governmental	131,153	124,395
Total billed retail	5,145,024	5,117,598
Sales for resale (a)	176,209	377,994
Other electric revenues (b)	291,788	396,231
Revenues from contracts with customers	5,613,021	5,891,823
Other Utility revenues (c)	55,633	22,208
Electric revenues	5,668,654	5,914,031
Natural gas revenues	98,084	120,369
Other revenues (d)	60,347	238,722
Total operating revenues	$5,827,085	$6,273,122

The Utility operating companies’ total revenues for the three months ended June 30, 2023 and 2022 were as follows:

2023	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New<br>Orleans	Entergy<br>Texas
	(In Thousands)
Residential	$204,808	$334,246	$163,001	$68,535	$180,834
Commercial	136,591	253,365	142,997	56,095	103,740
Industrial	153,817	407,045	54,738	7,562	127,015
Governmental	4,945	19,407	14,971	17,896	6,597
Total billed retail	500,161	1,014,063	375,707	150,088	418,186
Sales for resale (a)	48,266	80,248	26,073	11,075	1,986
Other electric revenues (b)	65,807	91,372	40,966	5,667	44,861
Revenues from contracts with customers	614,234	1,185,683	442,746	166,830	465,033
Other revenues (c)	2,113	6,226	2,384	1,386	(603)
Electric revenues	616,347	1,191,909	445,130	168,216	464,430
Natural gas revenues	—	13,703	—	19,800	—
Total operating revenues	$616,347	$1,205,612	$445,130	$188,016	$464,430

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Notes to Financial Statements

2022	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New<br>Orleans	Entergy<br>Texas
	(In Thousands)
Residential	$199,209	$400,915	$143,705	$80,484	$210,750
Commercial	127,230	290,063	118,278	58,801	121,293
Industrial	135,809	536,229	43,738	9,216	153,202
Governmental	5,137	21,841	12,611	20,179	7,333
Total billed retail	467,385	1,249,048	318,332	168,680	492,578
Sales for resale (a)	156,754	123,231	43,524	36,825	18,133
Other electric revenues (b)	70,820	119,847	41,325	17,443	54,259
Revenues from contracts with customers	694,959	1,492,126	403,181	222,948	564,970
Other revenues (c)	1,980	5,816	2,278	1,136	(379)
Electric revenues	696,939	1,497,942	405,459	224,084	564,591
Natural gas revenues	—	17,843	—	30,165	—
Total operating revenues	$696,939	$1,515,785	$405,459	$254,249	$564,591

The Utility operating companies’ total revenues for the six months ended June 30, 2023 and 2022 were as follows:

2023	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New<br>Orleans	Entergy<br>Texas
	(In Thousands)
Residential	$444,307	$694,892	$332,390	$132,101	$389,193
Commercial	261,927	531,543	276,673	110,164	226,782
Industrial	285,053	916,949	106,153	14,975	290,769
Governmental	9,605	42,481	28,854	35,694	14,519
Total billed retail	1,000,892	2,185,865	744,070	292,934	921,263
Sales for resale (a)	114,283	163,484	64,816	35,985	4,431
Other electric revenues (b)	79,524	117,939	43,840	6,084	47,085
Revenues from contracts with customers	1,194,699	2,467,288	852,726	335,003	972,779
Other revenues (c)	4,397	44,373	4,832	2,908	(843)
Electric revenues	1,199,096	2,511,661	857,558	337,911	971,936
Natural gas revenues	—	39,159	—	58,925	—
Total operating revenues	$1,199,096	$2,550,820	$857,558	$396,836	$971,936

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Notes to Financial Statements

2022	Entergy<br>Arkansas	Entergy<br>Louisiana	Entergy<br>Mississippi	Entergy<br>New<br>Orleans	Entergy<br>Texas
	(In Thousands)
Residential	$426,995	$754,483	$296,643	$139,141	$403,823
Commercial	240,469	547,653	228,939	104,373	228,856
Industrial	245,483	988,182	82,895	15,490	289,778
Governmental	9,598	40,857	24,612	35,211	14,117
Total billed retail	922,545	2,331,175	633,089	294,215	936,574
Sales for resale (a)	227,167	230,932	65,165	63,365	35,778
Other electric revenues (b)	101,392	161,329	51,662	18,836	65,709
Revenues from contracts with customers	1,251,104	2,723,436	749,916	376,416	1,038,061
Other revenues (c)	4,791	11,743	4,572	2,314	(988)
Electric revenues	1,255,895	2,735,179	754,488	378,730	1,037,073
Natural gas revenues	—	46,578	—	73,791	—
Total operating revenues	$1,255,895	$2,781,757	$754,488	$452,521	$1,037,073

(a)Sales for resale includes day-ahead sales of energy in a market administered by an ISO. These sales represent financially binding commitments for the sale of physical energy the next day. These sales are adjusted to actual power generated and delivered in the real time market. Given the short duration of these transactions, Entergy does not consider them to be derivatives subject to fair value adjustments and includes them as part of customer revenues.

(b)Other electric revenues consist primarily of transmission and ancillary services provided to participants of an ISO-administered market, unbilled revenue, and certain customer credits as directed by regulators.

(c)Other Utility revenues include the equity component of carrying costs related to securitization, settlement of financial hedges, occasional sales of inventory, alternative revenue programs, provisions for revenue subject to refund, and late fees.

(d)Other revenues include competitive business sales including day-ahead sales of energy in a market administered by an ISO, operation and management services fees, and amortization of a below-market power purchase agreement.

Allowance for doubtful accounts

The allowance for doubtful accounts reflects Entergy’s best estimate of expected losses on its accounts receivable balances. Due to the essential nature of utility services, Entergy has historically experienced a low rate of default on its accounts receivables. The following tables set forth a reconciliation of changes in the allowance for doubtful accounts for the six months ended June 30, 2023 and 2022.

	Entergy	Entergy <br>Arkansas	Entergy <br>Louisiana	Entergy <br>Mississippi	Entergy <br>New <br>Orleans	Entergy <br>Texas
	(In Millions)
Balance as of December 31, 2022	$30.9	$6.5	$7.6	$2.5	$11.9	$2.4
Provisions	15.5	3.2	7.0	2.1	0.7	2.5
Write-offs	(51.5)	(13.2)	(21.4)	(3.7)	(6.5)	(6.7)
Recoveries	26.9	8.7	11.7	1.5	1.5	3.5
Balance as of June 30, 2023	$21.8	$5.2	$4.9	$2.4	$7.6	$1.7

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Notes to Financial Statements

	Entergy	Entergy <br>Arkansas	Entergy <br>Louisiana	Entergy <br>Mississippi	Entergy <br>New <br>Orleans	Entergy <br>Texas
	(In Millions)
Balance as of December 31, 2021	$68.6	$13.1	$29.2	$7.2	$13.3	$5.8
Provisions (a)	11.0	8.2	0.4	0.2	0.9	1.3
Write-offs	(75.5)	(21.8)	(29.8)	(7.4)	(10.4)	(6.1)
Recoveries	21.5	6.7	7.9	2.2	3.1	1.6
Balance as of June 30, 2022	$25.6	$6.2	$7.7	$2.2	$6.9	$2.6

(a)Provisions include estimated incremental bad debt expenses, and revisions to those estimates, resulting from the COVID-19 pandemic of ($8.9) million for Entergy, $3.9 million for Entergy Arkansas, ($8.5) million for Entergy Louisiana, ($3.0) million for Entergy New Orleans, and ($1.3) million for Entergy Texas that have been deferred as regulatory assets. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the COVID-19 orders issued by retail regulators.

The allowance for currently expected credit losses is calculated as the historical rate of customer write-offs multiplied by the current accounts receivable balance, taking into account the length of time the receivable balances have been outstanding. The rate of customer write-offs has historically experienced minimal variation, although general economic conditions, such as the COVID-19 pandemic or other economic hardships, can affect the rate of customer write-offs. Management monitors the current condition of individual customer accounts to manage collections and ensure bad debt expense is recorded in a timely manner.

________________

In the opinion of the management of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy, the accompanying unaudited financial statements contain all adjustments (consisting primarily of normal recurring accruals and reclassification of previously reported amounts to conform to current classifications) necessary for a fair statement of the results for the interim periods presented. Entergy’s business is subject to seasonal fluctuations, however, with peak periods occurring typically during the first and third quarters. The results for the interim periods presented should not be used as a basis for estimating results of operations for a full year.

Part I, Item 3. Quantitative and Qualitative Disclosures About Market Risk

See the “Market and Credit Risk Sensitive Instruments” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis.

Part I, Item 4. Controls and Procedures

Disclosure Controls and Procedures

As of June 30, 2023, evaluations were performed under the supervision and with the participation of Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy (each individually a “Registrant” and collectively the “Registrants”) management, including their respective Principal Executive Officers (PEO) and Principal Financial Officers (PFO). The evaluations assessed the effectiveness of the Registrants’ disclosure controls and procedures. Based on the evaluations, each PEO and PFO has concluded that, as to the Registrant or Registrants for which they serve as PEO or PFO, the Registrant’s or Registrants’ disclosure controls and procedures are effective to ensure that information required to be disclosed by each Registrant in reports that it files or submits under the Securities Exchange Act of

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1934 is recorded, processed, summarized, and reported within the time periods specified in Securities and Exchange Commission rules and forms; and that the Registrant’s or Registrants’ disclosure controls and procedures are also effective in reasonably assuring that such information is accumulated and communicated to the Registrant’s or Registrants’ management, including their respective PEOs and PFOs, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

Under the supervision and with the participation of each Registrant’s management, including its respective PEO and PFO, each Registrant evaluated changes in internal control over financial reporting that occurred during the quarter ended June 30, 2023 and found no change that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.

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ENTERGY ARKANSAS, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Second Quarter 2023 Compared to Second Quarter 2022

Net income increased $3.8 million primarily due to higher retail electric price and lower other operation and maintenance expenses, partially offset by lower volume/weather, higher interest expense, and higher depreciation and amortization expenses.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Net income decreased $2.3 million primarily due to lower volume/weather, higher interest expense, and higher depreciation and amortization expenses, partially offset by higher retail electric price, lower other operation and maintenance expenses, and higher other income.

Operating Revenues

Second Quarter 2023 Compared to Second Quarter 2022

Following is an analysis of the change in operating revenues comparing the second quarter 2023 to the second quarter 2022:

	Amount
	(In Millions)
2022 operating revenues	$696.9
Fuel, rider, and other revenues that do not significantly affect net income	(90.6)
Volume/weather	(8.6)
Retail electric price	18.6
2023 operating revenues	$616.3

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

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

The retail electric price variance is primarily due to an increase in formula rate plan rates effective January 2023. See Note 2 to the financial statements in the Form 10-K for further discussion of the 2022 formula rate plan filing.

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Management's Financial Discussion and Analysis

Total electric energy sales for Entergy Arkansas for the three months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	1,767	1,820	(3)
Commercial	1,374	1,383	(1)
Industrial	2,226	2,135	4
Governmental	49	56	(13)
Total retail	5,416	5,394	—
Sales for resale:
Associated companies	512	450	14
Non-associated companies	811	2,010	(60)
Total	6,739	7,854	(14)

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

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2023 to the six months ended June 30, 2022:

	Amount
	(In Millions)
2022 operating revenues	$1,255.9
Fuel, rider, and other revenues that do not significantly affect net income	(64.8)
Volume/weather	(30.0)
Retail electric price	38.0
2023 operating revenues	$1,199.1

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

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Management's Financial Discussion and Analysis

Total electric energy sales for Entergy Arkansas for the six months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	3,569	3,912	(9)
Commercial	2,613	2,690	(3)
Industrial	4,276	4,106	4
Governmental	95	111	(14)
Total retail	10,553	10,819	(2)
Sales for resale:
Associated companies	1,075	936	15
Non-associated companies	2,379	3,401	(30)
Total	14,007	15,156	(8)

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

Other Income Statement Variances

Second Quarter 2023 Compared to Second Quarter 2022

Other operation and maintenance expenses decreased primarily due to:

•a decrease of $5.6 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023 and a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs;

•a decrease of $4.6 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2023 as compared to prior year; and

•a decrease of $3.4 million in transmission costs allocated by MISO.

The decrease was partially offset by an increase of $3.4 million in power delivery expenses primarily due to higher vegetation maintenance costs.

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

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other income increased primarily due to changes in decommissioning trust fund activity and an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2023.

Interest expense increased primarily due to the issuance of $425 million of 5.15% Series mortgage bonds in January 2023.

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Management's Financial Discussion and Analysis

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Other operation and maintenance expenses decreased primarily due to:

•the effects of recording a final judgment in first quarter 2023 to resolve claims in the ANO damages case against the DOE related to spent nuclear fuel storage costs. The damages awarded include the reimbursement of approximately $10.3 million of spent nuclear fuel storage costs previously recorded as other operation and maintenance expenses. See Note 1 to the financial statements herein for discussion of the spent nuclear fuel litigation;

•a decrease of $10.3 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023, a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities, and a revision to estimated incentive compensation expense in the first quarter 2023. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs;

•a decrease of $5.8 million in transmission costs allocated by MISO; and

•a decrease of $4.4 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2023 as compared to prior year.

The decrease was partially offset by an increase of $10 million in power delivery expenses primarily due to higher vegetation maintenance costs and higher reliability costs and an increase of $7.8 million in insurance expenses primarily due to lower nuclear insurance refunds received in 2023.

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other income increased primarily due to an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2023 and higher interest earned on money pool investments.

Interest expense increased primarily due to the issuance of $425 million of 5.15% Series mortgage bonds in January 2023.

Income Taxes

The effective income tax rate was 22.9% for the second quarter 2023. The difference in the effective income tax rate for the second quarter 2023 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rate was 19.4% for the six months ended June 30, 2023. The difference in the effective income tax rate for the six months ended June 30, 2023 versus the federal statutory rate of 21% was primarily due to the amortization of state accumulated deferred income taxes as a result of tax rate changes and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes.

The effective income tax rates were 21.9% for the second quarter 2022 and 22.3% for the six months ended June 30, 2022. The differences in the effective income tax rates for the second quarter 2022 and the six months ended June 30, 2022 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

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Management's Financial Discussion and Analysis

Income Tax Legislation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Income Tax Legislation” in the Form 10-K for a discussion of the Inflation Reduction Act of 2022. See the “Income Tax Legislation and Regulation” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis herein for updates to the discussion of income tax legislation and regulation.

Liquidity and Capital Resources

Cash Flow

Cash flows for the six months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Thousands)
Cash and cash equivalents at beginning of period	$5,278	$12,915
Net cash provided by (used in):
Operating activities	407,699	386,522
Investing activities	(563,854)	(376,810)
Financing activities	155,090	35,642
Net increase (decrease) in cash and cash equivalents	(1,065)	45,354
Cash and cash equivalents at end of period	$4,213	$58,269

Operating Activities

Net cash flow provided by operating activities increased $21.2 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•higher collections from customers;

•the refund of $41.7 million received from System Energy in January 2023 related to the sale-leaseback renewal costs and depreciation litigation as calculated in System Energy’s January 2023 compliance report filed with the FERC. The refund was subsequently applied to the under-recovered deferred fuel balance. See Note 2 to the financial statements herein and in the Form 10-K for further discussion of these refunds and the related proceedings; and

•$23.2 million in proceeds received from the DOE in April 2023 resulting from litigation regarding spent nuclear fuel storage costs that were previously expensed. See Note 1 to the financial statements herein for discussion of the spent nuclear fuel litigation.

The increase was partially offset by the timing of payments to vendors and an increase in spending of $26.2 million on nuclear refueling outages in 2023.

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Management's Financial Discussion and Analysis

Investing Activities

Net cash flow used in investing activities increased $187 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•an increase of $80.9 million in distribution construction expenditures primarily due to higher capital expenditures for storm restoration in 2023 and increased investment in the reliability and infrastructure of Entergy Arkansas’s distribution system;

•an increase of $57.8 million in transmission construction expenditures primarily due to increased investment in the reliability and infrastructure of Entergy Arkansas’s transmission system;

•an increase of $40.2 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; and

•an increase of $31 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2023.

The increase was partially offset by $17.9 million in proceeds received from the DOE in April 2023 resulting from litigation regarding spent nuclear fuel storage costs that were previously recorded as plant. See Note 1 to the financial statements herein for discussion of the spent nuclear fuel litigation.

Financing Activities

Net cash flow provided by financing activities increased $119.4 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•the issuance of $425 million of 5.15% Series mortgage bonds in January 2023;

•net borrowings of $97.5 million in 2023 compared to net borrowings of $7.2 million in 2022 on the nuclear fuel company variable interest entity’s credit facility; and

•money pool activity.

The increase was partially offset by:

•the repayment, at maturity, of $250 million of 3.05% Series mortgage bonds in June 2023;

•the issuance of $200 million of 4.20% Series mortgage bonds in March 2022; and

•an increase of $53 million in common equity distributions paid in 2023 in order to maintain Entergy Arkansas’s capital structure.

Decreases in Entergy Arkansas’s payable to the money pool are a use of cash flow, and Entergy Arkansas’s payable to the money pool decreased $28.5 million for the six months ended June 30, 2023 compared to decreasing by $139.9 million for the six months ended June 30, 2022. The money pool is an intercompany borrowing arrangement designed to reduce the Utility subsidiaries’ need for external short-term borrowings.

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 Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Capital Structure

Entergy Arkansas’s debt to capital ratio is shown in the following table. The increase in the debt to capital ratio for Entergy Arkansas is primarily due to the net issuance of long-term debt in 2023.

	June 30,<br>2023		December 31,<br>2022
Debt to capital	53.8	%	52.5	%
Effect of subtracting cash	—	%	—	%
Net debt to net capital (non-GAAP)	53.8	%	52.5	%

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 Arkansas 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 Arkansas’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Arkansas 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 Arkansas’s financial condition because net debt indicates Entergy Arkansas’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 Arkansas’s uses and sources of capital. Following are updates to the information provided in the Form 10-K.

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

June 30, <br>2023	December 31, <br>2022	June 30, <br>2022	December 31, <br>2021
(In Thousands)
($152,327)	($180,795)	$6,216	($139,904)

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

Entergy Arkansas has a credit facility in the amount of $150 million scheduled to expire in June 2028. Entergy Arkansas also has a $25 million credit facility scheduled to expire in April 2024. The $150 million credit facility includes fronting commitments for the issuance of letters of credit against $5 million of the borrowing capacity of the facility. As of June 30, 2023, there were $75 million in cash borrowings outstanding under the $150 million credit facility and no letters of credit outstanding under the credit facilities. In addition, Entergy Arkansas is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of June 30, 2023, $11.6 million in letters of credit were outstanding under Entergy Arkansas’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for further discussion of the credit facilities.

The Entergy Arkansas nuclear fuel company variable interest entity has a credit facility in the amount of $80 million scheduled to expire in June 2025. As of June 30, 2023, $22.5 million in loans were outstanding under the credit facility for the Entergy Arkansas nuclear fuel company variable interest entity. See Note 4 to the financial statements herein for further discussion of the nuclear fuel company variable interest entity credit facility.

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Walnut Bend Solar

West Memphis Solar

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 state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.

Retail Rates

2023 Formula Rate Plan Filing

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Entergy Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Energy Cost Recovery Rider

Opportunity Sales Proceeding

Net Metering Legislation

As discussed in the Form 10-K, an Arkansas law was enacted effective July 2019 that, among other things, expands the definition of a “net metering customer” to include two additional types of customers: (1) customers that lease net metering facilities, subject to certain leasing arrangements, and (2) government entities or other entities exempt from state and federal income taxes that enter into a service contract for a net metering facility. The latter provision allows eligible entities, many of whom are small and large general service customers, to purchase renewable energy directly from third party providers and receive bill credits for these purchases. The APSC was given authority under this law to address certain matters, such as cost shifting and the appropriate compensation for net metered energy and initiated proceedings for this purpose. Because of the size and number of customers eligible under this new law, there is a risk of loss of load and the shifting of costs to customers. A hearing was held in December 2019, with utilities, including Entergy Arkansas, cooperatives, the Arkansas Attorney General, and industrial customers advocating the need for establishment of a reasonable rate structure that takes into account impacts to non-net metering customers; an additional hearing was conducted in February 2020 for purposes of public comment only. The APSC issued an order in June 2020, and in July 2020 several parties, including Entergy Arkansas, filed for rehearing on multiple grounds, including for the reasons that it imposes an unreasonable rate structure and allows facilities to net meter that do not meet the statutory definition of net metering facilities. After granting the rehearing requests, the APSC issued an order in September 2020 largely upholding its June 2020 order. In October 2020, Entergy Arkansas and several other parties filed an appeal of the APSC’s September 2020 order. In January 2021, Entergy Arkansas, pursuant to an APSC order, filed an updated net metering tariff, which was approved in February 2021. In May 2021, Entergy Arkansas filed a motion to dismiss its pending judicial appeal of the APSC’s September 2020 order on rehearing in the proceeding addressing its net metering rules. In June 2021 the Arkansas Court of Appeals granted the motion and dismissed Entergy Arkansas’s appeal, although other appeals of the September 2020 APSC order remained before the court. In May 2022 the court issued an order affirming the APSC’s decision in part and reversing in part. In June 2022 the APSC sought rehearing from the court with respect

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Management's Financial Discussion and Analysis

to the court’s ruling on a grid charge, which the court of appeals denied in July 2022. One of the cooperative appellants filed a further appeal to the Arkansas Supreme Court in July 2022, which the court decided not to hear.

In August 2022 the APSC opened a rulemaking concerning proposed amendments to the net metering rules to address the expiration on December 31, 2022 of the automatic grandfathering of the existing net metering rate structure. Entergy Arkansas and other utility parties filed initial briefs and comments setting forth that the statute imposing the expiration of the automatic grandfathering is not ambiguous and that the APSC does not have the authority to extend the grandfathering period, and the hearing was held in October 2022. In December 2022 the APSC issued an order attempting to modify the net metering rules and purporting to allow for the potential for grandfathering after December 31, 2022. More than thirty applicants filed individual net metering applications in December 2022 seeking to be considered under the APSC’s order, although the APSC issued an order in January 2023 holding those applications in abeyance. Several parties, including Entergy Arkansas, sought rehearing, and the Arkansas’s Governor’s executive order limiting new rulemakings calls into question how the APSC’s order to adopt new rules may be effectuated.

Also in September 2022 the APSC opened another proceeding to investigate the issue of potential cost shifting arising as a result of net metering. Investor owned utilities and some cooperatives were required to make and did make filings in October 2022 with supporting documentation as to the amount and extent of cost shifting and the manner in which they would design tariffs to recover those costs on behalf of non-net metering customers. Responses to the utility and cooperative filings were filed in January 2023, and utilities filed their further responses in February 2023.

An Arkansas law was enacted effective March 2023 that revises the billing arrangements for net metering facilities in order to reduce the cost shift to non-net metering customers. The new law also imposes a new limit of 5 MW for future net metering facilities, allows utilities to recover net metering credits in the same manner as fuel, and grandfathers certain net metering facilities that are online or in process to be online by September 2024. Entergy Arkansas joined other utilities in a motion in April 2023 to close the current APSC docket related to potential cost shifting in light of the new law, and the APSC also canceled the remaining procedural schedule in this docket in April 2023. Because of the new law, in May 2023, the APSC also closed the grandfathering rulemaking that it opened in August 2022. Under the new law, the APSC must approve revisions to the utilities’ tariffs to conform to the new law no later than December 2023. The APSC opened a new rulemaking in April 2023 to consider implementation of the new law and tariffs.

COVID-19 Orders

Power Through Program

As discussed in the Form 10-K, in August 2021, Entergy Arkansas filed with the APSC an application seeking authority for a Power Through offering to deploy natural gas-fired distributed generation. In December 2021 the APSC general staff requested briefing, which Entergy Arkansas opposed. In January 2022, Entergy Arkansas filed to support the establishment of a procedural schedule with a hearing in April 2022. Also in January 2022, the APSC granted the general staff’s request for briefing but on an expedited schedule; briefing concluded in February 2022. A paper hearing was held in August and September 2022 with Entergy Arkansas responding to several written commissioner questions. In May 2023 the APSC approved the Power Through offering with some modifications, and in June 2023, Entergy Arkansas sought rehearing or clarification of several issues. See “Property and Other Generation Resources - Other Generation Resources - Power Through Programs” in Part I, Item 1 in the Form 10-K for further discussion related to this program.

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Entergy Arkansas, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Remaining Useful Lives Review

As discussed in the Form 10-K, in response to 2021 legislation, in December 2021 the APSC opened a proceeding to establish a procedure to evaluate life extensions of all utility generation units and in December 2022 opened a separate docket to evaluate life extensions for White Bluff, Independence, and the Lake Catherine plant. In January 2023, Entergy Arkansas and one other party filed for rehearing of the order in the general proceeding, and Entergy Arkansas moved to dismiss the separate docket. In February 2023 the APSC granted rehearing in the general proceeding. A new law passed in April 2023 changed the requirements for the APSC to perform these evaluations, thus eliminating the need for the current APSC proceedings, and the APSC cancelled the procedural schedule in the separate docket. In June 2023 the APSC also closed the general proceeding because of the new law. See “Regulation of Entergy’s Business - Environmental Regulation - National Ambient Air Quality Standards - Regional Haze” in Part I, Item 1 in the Form 10-K for further discussion related to these plants.

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.

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 Arkansas’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 ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$616,347	$696,939	$1,199,096	$1,255,895
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	102,350	202,795	215,859	289,020
Purchased power	57,648	50,209	122,399	107,680
Nuclear refueling outage expenses	15,504	14,210	30,845	28,280
Other operation and maintenance	178,044	187,319	334,863	344,576
Decommissioning	21,667	20,428	43,017	40,557
Taxes other than income taxes	34,743	32,072	67,094	65,274
Depreciation and amortization	99,707	96,548	196,148	192,158
Other regulatory charges (credits) - net	(19,185)	(21,518)	(40,029)	(42,060)
TOTAL	490,478	582,063	970,196	1,025,485
OPERATING INCOME	125,869	114,876	228,900	230,410
OTHER INCOME
Allowance for equity funds used during construction	5,400	3,920	10,243	6,975
Interest and investment income	5,727	2,840	13,206	9,160
Miscellaneous - net	(6,239)	(4,892)	(8,340)	(10,284)
TOTAL	4,888	1,868	15,109	5,851
INTEREST EXPENSE
Interest expense	46,038	37,452	91,405	73,499
Allowance for borrowed funds used during construction	(2,169)	(1,558)	(4,114)	(2,772)
TOTAL	43,869	35,894	87,291	70,727
INCOME BEFORE INCOME TAXES	86,888	80,850	156,718	165,534
Income taxes	19,940	17,740	30,374	36,857
NET INCOME	66,948	63,110	126,344	128,677
Net loss attributable to noncontrolling interest	(1,006)	(529)	(2,635)	(1,916)
EARNINGS APPLICABLE TO MEMBER'S EQUITY	$67,954	$63,639	$128,979	$130,593
See Notes to Financial Statements.

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ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	2023	2022
	(In Thousands)
OPERATING ACTIVITIES
Net income	$126,344	$128,677
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	270,098	268,699
Deferred income taxes, investment tax credits, and non-current taxes accrued	33,572	27,814
Changes in assets and liabilities:
Receivables	21,444	(95,608)
Fuel inventory	(6,830)	7,316
Accounts payable	(43,953)	34,321
Taxes accrued	(4,315)	14,824
Interest accrued	10,421	1,585
Deferred fuel costs	123,264	(2,384)
Other working capital accounts	(30,581)	13,458
Provisions for estimated losses	(26,606)	(4,119)
Other regulatory assets	(51,960)	(30,484)
Other regulatory liabilities	97,349	(267,437)
Pension and other postretirement liabilities	(18,948)	(31,762)
Other assets and liabilities	(91,600)	321,622
Net cash flow provided by operating activities	407,699	386,522
INVESTING ACTIVITIES
Construction expenditures	(524,723)	(351,907)
Allowance for equity funds used during construction	10,243	6,975
Nuclear fuel purchases	(73,912)	(53,256)
Proceeds from sale of nuclear fuel	17,614	37,198
Proceeds from nuclear decommissioning trust fund sales	54,469	101,428
Investment in nuclear decommissioning trust funds	(65,584)	(111,032)
Change in money pool receivable - net	—	(6,216)
Litigation proceeds for reimbursement of spent nuclear fuel storage costs	17,933	—
Other	106	—
Net cash flow used in investing activities	(563,854)	(376,810)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	661,923	223,882
Retirement of long-term debt	(394,810)	(7,511)
Changes in money pool payable - net	(28,468)	(139,904)
Common equity distributions paid	(89,000)	(36,000)
Other	5,445	(4,825)
Net cash flow provided by financing activities	155,090	35,642
Net increase (decrease) in cash and cash equivalents	(1,065)	45,354
Cash and cash equivalents at beginning of period	5,278	12,915
Cash and cash equivalents at end of period	$4,213	$58,269
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$79,716	$70,803
See Notes to Financial Statements.

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ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$352	$1,911
Temporary cash investments	3,861	3,367
Total cash and cash equivalents	4,213	5,278
Accounts receivable:
Customer	138,675	140,513
Allowance for doubtful accounts	(5,236)	(6,528)
Associated companies	38,081	45,336
Other	69,155	101,096
Accrued unbilled revenues	135,114	116,816
Total accounts receivable	375,789	397,233
Deferred fuel costs	16,475	139,739
Fuel inventory - at average cost	57,974	51,144
Materials and supplies - at average cost	318,400	288,260
Deferred nuclear refueling outage costs	65,057	56,443
Prepayments and other	50,866	26,576
TOTAL	888,774	964,673
OTHER PROPERTY AND INVESTMENTS
Decommissioning trust funds	1,326,627	1,199,860
Other	2,306	2,414
TOTAL	1,328,933	1,202,274
UTILITY PLANT
Electric	14,475,635	14,077,844
Construction work in progress	476,253	417,244
Nuclear fuel	177,770	176,174
TOTAL UTILITY PLANT	15,129,658	14,671,262
Less - accumulated depreciation and amortization	5,879,574	5,729,304
UTILITY PLANT - NET	9,250,084	8,941,958
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets	1,862,241	1,810,281
Deferred fuel costs	68,883	68,883
Other	23,784	18,507
TOTAL	1,954,908	1,897,671
TOTAL ASSETS	$13,422,699	$13,006,576
See Notes to Financial Statements.

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ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$415,000	$290,000
Accounts payable:
Associated companies	212,328	276,362
Other	307,962	310,339
Customer deposits	106,383	102,799
Taxes accrued	96,211	100,526
Interest accrued	29,237	18,816
Other	64,726	43,394
TOTAL	1,231,847	1,142,236
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	1,539,103	1,498,234
Accumulated deferred investment tax credits	27,871	28,472
Regulatory liability for income taxes - net	424,591	435,157
Other regulatory liabilities	583,673	475,758
Decommissioning	1,515,753	1,472,736
Accumulated provisions	53,392	79,998
Pension and other postretirement liabilities	99,010	118,020
Long-term debt	4,023,803	3,876,500
Other	104,713	97,650
TOTAL	8,371,909	8,082,525
Commitments and Contingencies
EQUITY
Member's equity	3,793,970	3,753,990
Noncontrolling interest	24,973	27,825
TOTAL	3,818,943	3,781,815
TOTAL LIABILITIES AND EQUITY	$13,422,699	$13,006,576
See Notes to Financial Statements.

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ENTERGY ARKANSAS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Noncontrolling Interest	Member's Equity	Total
	(In Thousands)
Balance at December 31, 2021	$33,110	$3,542,745	$3,575,855
Net income (loss)	(1,387)	66,954	65,567
Balance at March 31, 2022	31,723	3,609,699	3,641,422
Net income (loss)	(529)	63,639	63,110
Common equity distributions	—	(36,000)	(36,000)
Distributions to noncontrolling interest	(190)	—	(190)
Balance at June 30, 2022	$31,004	$3,637,338	$3,668,342
Balance at December 31, 2022	$27,825	$3,753,990	$3,781,815
Net income (loss)	(1,629)	61,026	59,397
Common equity distributions	—	(80,000)	(80,000)
Distributions to noncontrolling interest	(104)	—	(104)
Balance at March 31, 2023	26,092	3,735,016	3,761,108
Net income (loss)	(1,006)	67,954	66,948
Common equity distributions	—	(9,000)	(9,000)
Distributions to noncontrolling interest	(113)	—	(113)
Balance at June 30, 2023	$24,973	$3,793,970	$3,818,943
See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Second Quarter 2023 Compared to Second Quarter 2022

Net income decreased $53.4 million primarily due to the net effects of Entergy Louisiana’s storm cost securitization in May 2022, including a $290 million reduction in income tax expense, partially offset by a $224.4 million ($165.4 million net-of-tax) regulatory charge to reflect its obligation to share the benefits of the securitization with customers. The decrease was partially offset by higher other income, higher retail electric price, and lower other operation and maintenance expenses. See Note 2 to the financial statements in the Form 10-K for discussion of the May 2022 storm cost securitization.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Net income increased $39.8 million primarily due to the net effects of Entergy Louisiana’s storm cost securitization in March 2023, including a $133.4 million reduction in income tax expense, partially offset by a $103.4 million ($76.4 million net-of-tax) regulatory charge to reflect Entergy Louisiana’s obligation to share the benefits of the securitization with customers, higher retail electric price, higher other income, and lower other operation and maintenance expenses. The net income increase was partially offset by the net effects of Entergy Louisiana’s storm cost securitization in May 2022, including a $290 million reduction in income tax expense, partially offset by a $224.4 million ($165.4 million net-of-tax) regulatory charge. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the storm cost securitizations.

Operating Revenues

Second Quarter 2023 Compared to Second Quarter 2022

Following is an analysis of the change in operating revenues comparing the second quarter 2023 to the second quarter 2022:

	Amount
	(In Millions)
2022 operating revenues	$1,515.8
Fuel, rider, and other revenues that do not significantly affect net income	(320.9)
Storm restoration carrying costs	(37.5)
Volume/weather	(7.9)
Return of unprotected excess accumulated deferred income taxes to customers	9.2
Retail electric price	46.9
2023 operating revenues	$1,205.6

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

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Management's Financial Discussion and Analysis

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales and a decrease in commercial and industrial usage. The decreased usage from these commercial and industrial customers has a relatively smaller effect on operating revenues because a larger portion of the revenues from those customers comes from fixed charges.

The return of unprotected excess accumulated deferred income taxes to customers resulted from the return of unprotected excess accumulated deferred income taxes through changes in the formula rate plan effective May 2018 in response to the enactment of the Tax Cuts and Jobs Act. In the second quarter 2022, $9.2 million was returned to customers through reductions in operating revenues. There was no return of unprotected excess accumulated deferred income taxes to customers for the second quarter 2023. There was 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 discussion of regulatory activity regarding the Tax Cuts and Jobs Act.

The retail electric price variance is primarily due to an increase in formula rate plan revenues, including increases in the distribution and transmission recovery mechanisms, effective September 2022. See Note 2 to the financial statements in the Form 10-K for further discussion of the formula rate plan proceeding.

Total electric energy sales for Entergy Louisiana for the three months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	3,694	3,824	(3)
Commercial	2,801	2,879	(3)
Industrial	8,014	8,148	(2)
Governmental	206	208	(1)
Total retail	14,715	15,059	(2)
Sales for resale:
Associated companies	678	1,315	(48)
Non-associated companies	464	467	(1)
Total	15,857	16,841	(6)

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

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Management's Financial Discussion and Analysis

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2023 to the six months ended June 30, 2022:

	Amount
	(In Millions)
2022 operating revenues	$2,781.8
Fuel, rider, and other revenues that do not significantly affect net income	(300.9)
Volume/weather	(29.5)
Storm restoration carrying costs	(6.9)
Return of unprotected excess accumulated deferred income taxes to customers	18.4
Retail electric price	87.9
2023 operating revenues	$2,550.8

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

Storm restoration carrying costs represent the equity component of storm restoration carrying costs, recorded in second quarter 2022, recognized as part of the securitization of Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida restoration costs in May 2022, partially offset by the equity component of storm restoration carrying costs, recorded in first quarter 2023, recognized as part of the securitization of Hurricane Ida restoration costs in March 2023. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the storm cost securitizations.

The return of unprotected excess accumulated deferred income taxes to customers resulted from the return of unprotected excess accumulated deferred income taxes through changes in the formula rate plan effective May 2018 in response to the enactment of the Tax Cuts and Jobs Act. In the six months ended June 30, 2022, $18.4 million was returned to customers through reductions in operating revenues. There was no return of unprotected excess accumulated deferred income taxes to customers for the six months ended June 30, 2023. There was 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 discussion of regulatory activity regarding the Tax Cuts and Jobs Act.

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Total electric energy sales for Entergy Louisiana for the six months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	6,378	6,893	(7)
Commercial	5,248	5,300	(1)
Industrial	15,845	15,754	1
Governmental	400	399	—
Total retail	27,871	28,346	(2)
Sales for resale:
Associated companies	2,355	2,656	(11)
Non-associated companies	688	1,323	(48)
Total	30,914	32,325	(4)

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

Other Income Statement Variances

Second Quarter 2023 Compared to Second Quarter 2022

Other operation and maintenance expenses decreased primarily due to:

•a decrease of $11.8 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023 and a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs;

•a decrease of $7.4 million in power delivery expenses primarily due to lower transmission repairs and maintenance costs;

•a decrease of $7.4 million in transmission costs allocated by MISO. See Note 2 to the financial statements in the Form 10-K for further information on the recovery of these costs;

•a decrease of $6.6 million in nuclear generation expenses primarily due to lower nuclear labor costs; and

•a decrease of $4.9 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2023 as compared to 2022.

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other regulatory charges (credits) - net includes a regulatory charge of $224.4 million, recorded in second quarter 2022, to reflect Entergy Louisiana’s obligation to provide credits to its customers as described in an LPSC ancillary order issued in the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida securitization regulatory proceeding. See Note 2 to the financial statements in the Form 10-K for discussion of the May 2022 storm cost securitization. In addition, Entergy Louisiana records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

Other income increased primarily due to an increase of $38.7 million in affiliated dividend income from affiliated preferred membership interests, related to storm cost securitizations, and a $31.6 million charge, recorded

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Management's Financial Discussion and Analysis

in second quarter 2022, for the LURC’s 1% beneficial interest in the storm trust I established as part of the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida May 2022 storm cost securitization. See Note 2 to the financial statements in the Form 10-K for discussion of the May 2022 storm cost securitization.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Other operation and maintenance expenses decreased primarily due to:

•a decrease of $18.1 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023, a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities, and a revision to estimated incentive compensation expense in the first quarter 2023. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs;

•a decrease of $13 million in transmission costs allocated by MISO. See Note 2 to the financial statements in the Form 10-K for further information on the recovery of these costs;

•a decrease of $9.8 million in power delivery expenses primarily due to lower transmission repairs and maintenance costs and the timing of vegetation maintenance;

•a decrease of $8 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2023 as compared to prior year; and

•a decrease of $6.6 million in nuclear generation expenses primarily due to lower nuclear labor costs and lower costs associated with materials and supplies in 2023 as compared to 2022.

The decrease was partially offset by an increase of $3.2 million in insurance expenses primarily due to lower nuclear insurance refunds received in 2023.

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other regulatory charges (credits) - net includes:

•a regulatory charge of $103.4 million, recorded in first quarter 2023, to reflect Entergy Louisiana’s obligation to provide credits to its customers as described in an LPSC ancillary order issued in the Hurricane Ida securitization regulatory proceeding. See Note 2 to the financial statements herein for discussion of the March 2023 storm cost securitization; and

•a regulatory charge of $224.4 million, recorded in second quarter 2022, to reflect Entergy Louisiana’s obligation to provide credits to its customers as described in an LPSC ancillary order issued in the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida securitization regulatory proceeding. See Note 2 to the financial statements in the Form 10-K for discussion of the May 2022 storm cost securitization.

In addition, Entergy Louisiana records a regulatory charge or credit for the difference between asset retirement obligation-related expenses and nuclear decommissioning trust earnings plus asset retirement obligation-related costs collected in revenue.

Other income increased primarily due to an increase of $62.2 million in affiliated dividend income from affiliated preferred membership interests, related to storm cost securitizations, and a $31.6 million charge, recorded in second quarter 2022, for the LURC’s 1% beneficial interest in the storm trust I established as part of the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida May 2022 storm cost securitization. The increase was partially offset by a $14.6 million charge, recorded in first quarter 2023, for the LURC’s 1% beneficial interest in the storm trust II established as part of the March 2023 Hurricane Ida storm cost

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Management's Financial Discussion and Analysis

securitization. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the storm cost securitizations.

Income Taxes

The effective income tax rate was 20.7% for the second quarter 2023. The difference in the effective income tax rate for the second quarter 2023 versus the federal statutory rate of 21% was primarily due to book and tax differences related to the non-taxable income distributions earned on preferred membership interests, partially offset by the accrual for state income taxes and the amortization of state accumulated deferred income taxes as a result of a tax rate change.

The effective income tax rate was (9.1%) for the six months ended June 30, 2023. The difference in the effective income tax rate for the six months ended June 30, 2023 versus the federal statutory rate of 21% was primarily due to the reduction in income tax expense as a result of the March 2023 securitization of storm costs pursuant to Louisiana Act 55, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021 and book and tax differences related to the non-taxable income distributions earned on preferred membership interests, partially offset by the accrual for state income taxes and the amortization of state accumulated deferred income taxes as a result of a tax rate change. See Notes 2 and 10 to the financial statements herein for a discussion of the March 2023 storm cost securitization under Act 293.

The effective income tax rate was (3,258.7%) for the second quarter 2022. The difference in the effective income tax rate for the second quarter 2022 versus the federal statutory rate of 21% was primarily due to the reduction in income tax expense as a result of the securitization of Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida storm costs pursuant to Louisiana Act 55, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021, 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, the amortization of excess accumulated deferred income taxes, the amortization of investment tax credits, and book and tax differences related to the allowance for equity funds used during construction, partially offset by the accrual for state income taxes. See Notes 2 and 3 to the financial statements in the Form 10-K for a discussion of the May 2022 storm cost securitization under Act 293. 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 of and regulatory activity regarding the Tax Cuts and Jobs Act.

The effective income tax rate was (144.7%) for the six months ended June 30, 2022. The difference in the effective income tax rate for the six months ended June 30, 2022 versus the federal statutory rate of 21% was primarily due to the reduction in income tax expense as a result of the securitization of Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida storm costs pursuant to Louisiana Act 55, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021, 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 the accrual for state income taxes. See Notes 2 and 3 to the financial statements in the Form 10-K for a discussion of the May 2022 storm cost securitization under Act 293. 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 of and regulatory activity regarding the Tax Cuts and Jobs Act.

Income Tax Legislation

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Liquidity and Capital Resources

Cash Flow

Cash flows for the six months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Thousands)
Cash and cash equivalents at beginning of period	$56,613	$18,573
Net cash provided by (used in):
Operating activities	928,060	206,713
Investing activities	(2,658,135)	(3,653,859)
Financing activities	2,530,488	3,494,744
Net increase in cash and cash equivalents	800,413	47,598
Cash and cash equivalents at end of period	$857,026	$66,171

Operating Activities

Net cash flow provided by operating activities increased $721.3 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•the timing of payments to vendors;

•a decrease of $210.8 million in storm spending primarily due to Hurricane Ida restoration efforts in 2022;

•the refund of $27.8 million received from System Energy in January 2023 related to the sale-leaseback renewal costs and depreciation litigation as calculated in System Energy’s January 2023 compliance report filed with the FERC. See Note 2 to the financial statements herein and in the Form 10-K for further discussion of these refunds and related proceedings;

•lower fuel costs and the timing of recovery of fuel and purchased power costs. See Note 2 to the financial statements in the Form 10-K for a discussion of fuel and purchased power cost recovery; and

•higher collections from customers.

Investing Activities

Net cash flow used in investing activities decreased $995.7 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•a decrease in investment in affiliates due to the $3,163.6 million purchase by the storm trust I of preferred membership interests issued by an Entergy affiliate, partially offset by the $1,390.6 million redemption of preferred membership interests. See Note 2 to the financial statements in the Form 10-K for a discussion of the May 2022 storm cost securitization;

•a decrease of $613.7 million in distribution construction expenditures primarily due to lower capital expenditures for storm restoration in 2023;

•a decrease of $283.5 million in net payments to storm reserve escrow accounts;

•a decrease of $162 million in transmission construction expenditures primarily due to lower capital expenditures for storm restoration in 2023 and decreased spending on various transmission projects in 2023; and

•the $46.6 million redemption, in February 2023, of preferred membership interests held by the storm trust I, as part of periodic redemptions that are expected to occur, subject to certain conditions, for the preferred membership interests that were issued in connection with the May 2022 storm cost securitization. See Note

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

2 to the financial statements in the Form 10-K for a discussion of the May 2022 storm cost securitization and the storm trust I’s investment in preferred membership interests.

The decrease was partially offset by:

•an increase in investment in affiliates in 2023 due to the $1,457.7 million purchase by the storm trust II of preferred membership interests issued by an Entergy affiliate. See Note 2 to the financial statements herein for a discussion of the March 2023 storm cost securitization and the storm trust II’s investment in preferred membership interests;

•an increase of $95.2 million in nuclear construction expenditures primarily due to increased spending on various nuclear projects in 2023;

•money pool activity; and

•an increase of $31.7 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.

Increases in Entergy Louisiana’s receivables from the money pool are a use of cash flow, and Entergy Louisiana’s receivable from the money pool increased $275.6 million for the six months ended June 30, 2023 compared to decreasing by $7.2 million for the six months ended June 30, 2022. The money pool is an intercompany borrowing arrangement designed to reduce the Utility subsidiaries’ need for external short-term borrowings.

Financing Activities

Net cash flow provided by financing activities decreased $964.3 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•proceeds from securitization of $1.5 billion received by the storm trust II in 2023 compared to proceeds from securitization of $3.2 billion received by the storm trust I in 2022;

•money pool activity; and

•an increase of $35.3 million in common equity distributions paid in 2023 in order to maintain Entergy Louisiana’s capital structure.

The decrease was partially offset by:

•a capital contribution of approximately $1.5 billion in 2023 as compared to a capital contribution of approximately $1 billion in 2022, both received indirectly from Entergy Corporation and related to the March 2023 storm cost securitization and the May 2022 storm cost securitization, respectively;

•the repayment, prior to maturity, in May 2022 of $435 million, a portion of the outstanding principal, of 0.62% Series mortgage bonds due November 2023; and

•a decrease of $99 million in 2023 in net repayments on Entergy Louisiana’s revolving credit facility.

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 $226.1 million for the six months ended June 30, 2023.

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. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of the storm cost securitizations.

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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 decrease in the debt to capital ratio for Entergy Louisiana is primarily due to the $1.5 billion capital contribution received indirectly from Entergy Corporation in March 2023.

	June 30,<br> 2023		December 31, <br>2022
Debt to capital	48.6	%	53.0	%
Effect of subtracting cash	(2.0	%)	(0.1	%)
Net debt to net capital (non-GAAP)	46.6	%	52.9	%

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 Louisiana 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 Louisiana’s financial condition. The net debt to net capital ratio is a non-GAAP measure. Entergy Louisiana 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 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.

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:

June 30,<br> 2023	December 31, <br>2022	June 30,<br> 2022	December 31, <br>2021
(In Thousands)
$275,559	($226,114)	$7,377	$14,539

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 June 2028. 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 June 30, 2023, 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 June 30, 2023, $20 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 June 2025. As of June 30, 2023, $56.4 million in loans were outstanding under the credit facility for the Entergy Louisiana River Bend nuclear fuel company variable interest entity. As of June 30, 2023, $49.8 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.

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

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

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 were 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 of $57 million through December 2022, Entergy Louisiana was seeking an LPSC determination that $2.60 billion was prudently incurred and, therefore, eligible for recovery from customers. As part of this filing, Entergy Louisiana also was seeking an LPSC determination that an additional $32 million in 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 was exclusive of the requested $3 million in carrying costs through December 2022. In total, Entergy Louisiana was requesting an LPSC determination that $2.64 billion was prudently incurred and, therefore, eligible for recovery from customers. As discussed in the Form 10-K, in March 2022 the LPSC approved financing of a $1 billion storm escrow account from which funds were withdrawn to finance costs associated with Hurricane Ida restoration. In June 2022, 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 October 2022 the LPSC staff recommended a finding that the requested storm restoration costs of $2.64 billion, including associated carrying costs of $59.1 million, were prudently incurred and eligible for recovery from customers. The LPSC staff further recommended approval of Entergy Louisiana’s plans to securitize these costs, net of the $1 billion in funds withdrawn from the storm escrow account described above. The parties negotiated and executed an uncontested stipulated settlement which was filed with the LPSC in December 2022. The settlement agreement contains the following key terms: $2.57 billion of restoration costs from Hurricane Ida, Hurricane Laura, Hurricane Delta, Hurricane Zeta, and Winter Storm Uri were prudently incurred and eligible for recovery; carrying costs of $59.2 million were recoverable; and Entergy Louisiana was authorized to finance $1.657 billion utilizing the securitization process authorized by Act 55, as supplemented by Act 293. In January 2023, the LPSC approved the stipulated settlement subject to certain modifications. These modifications include the recognition of accumulated deferred income tax benefits related to damaged assets and system restoration costs as a reduction of the amount authorized to be financed utilizing the securitization process authorized by Act 55, as supplemented by Act 293, from $1.657 billion to $1.491 billion. These modifications did not affect the LPSC’s conclusion that all system restoration costs sought by Entergy Louisiana were reasonable and prudent. In February 2023 the Louisiana Bond Commission voted to authorize the Louisiana Local Government Environmental Facilities and Community Development Authority (LCDA), a political subdivision of the State of Louisiana, to issue the bonds authorized in the LPSC’s financing order.

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Utilities Restoration Corporation Act, Part VIII of Chapter 9 of Title 45 of the Louisiana Revised Statutes, as supplemented by Act 293 of the Louisiana Legislature’s Regular Session of 2021. The LCDA loaned the proceeds to the LURC. Pursuant to Act 293, the LURC contributed the net bond proceeds to a State legislatively authorized and LURC-sponsored trust, Restoration Law Trust II (the storm trust II).

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

System Resilience and Storm Hardening

2022 Solar Portfolio and Expansion of the Geaux Green Option

In February 2023, Entergy Louisiana filed an application with the LPSC seeking certification of the Iberville/Coastal Prairie facility, which will provide 175 MW of capacity through a PPA with a third party, and the Sterlington facility, a 49 MW self-build project located near the deactivated Sterlington power plant. Entergy Louisiana is seeking to include these within the portfolio supporting the Geaux Green Option (Rider GGO) rate schedule to help fulfill customer interest in access to renewable energy. Entergy Louisiana has requested the costs of these facilities, as offset by Rider GGO revenues, be deemed eligible for recovery in accordance with the terms of the formula rate plan and fuel adjustment clause rate mechanisms that exist at the time the facilities are placed into service. The Louisiana Energy Users Group and the Alliance for Affordable Energy have intervened, and discovery is underway. A procedural schedule has been established with a hearing scheduled for December 2023 and settlement negotiations are ongoing. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Liquidity and Capital Resources - Uses of Capital - 2021 Solar Certification and the Geaux Green Option” in the Form 10-K for further discussion of the Rider GGO.

Alternative RFP and Certification

Nelson Industrial Steam Company

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

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 state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.

Retail Rates

2022 Formula Rate Plan Filing

COVID-19 Orders

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.

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Entergy Louisiana, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Nuclear Matters

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

NRC Reactor Oversight Process

As discussed in the Form 10-K, the NRC’s Reactor Oversight Process is a program to collect information about plant performance, assess the information for its safety significance, and provide for appropriate licensee and NRC response. The NRC evaluates plant performance by analyzing two distinct inputs: inspection findings resulting from the NRC’s inspection program and performance indicators reported by the licensee. The evaluations result in the placement of each plant in one of the NRC’s Reactor Oversight Process Action Matrix columns: “licensee response column,” or Column 1, “regulatory response column,” or Column 2, “degraded cornerstone column,” or Column 3, “multiple/repetitive degraded cornerstone column,” or Column 4, and “unacceptable performance,” or Column 5. Plants in Column 1 are subject to normal NRC inspection activities. Plants in Column 2, Column 3, or Column 4 are subject to progressively increasing levels of inspection by the NRC with, in general, progressively increasing levels of associated costs. Continued plant operation is not permitted for plants in Column 5. Waterford 3 is currently in Column 1, and River Bend is currently in Column 2.

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 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 and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$1,191,909	$1,497,942	$2,511,661	$2,735,179
Natural gas	13,703	17,843	39,159	46,578
TOTAL	1,205,612	1,515,785	2,550,820	2,781,757
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	230,365	253,505	605,635	615,579
Purchased power	133,376	420,549	328,310	596,746
Nuclear refueling outage expenses	12,588	10,029	27,861	21,976
Other operation and maintenance	249,717	293,746	496,088	547,747
Decommissioning	18,820	17,911	37,406	35,599
Taxes other than income taxes	61,663	58,566	125,618	120,181
Depreciation and amortization	181,247	171,719	357,342	340,802
Other regulatory charges (credits) - net	(24,767)	203,461	49,229	182,564
TOTAL	863,009	1,429,486	2,027,489	2,461,194
OPERATING INCOME	342,603	86,299	523,331	320,563
OTHER INCOME
Allowance for equity funds used during construction	8,654	2,859	17,715	9,585
Interest and investment income (loss)	31,880	(68,382)	60,723	(84,380)
Interest and investment income - affiliated	81,877	43,203	137,303	75,101
Miscellaneous - net	(42,583)	36,986	(90,668)	52,503
TOTAL	79,828	14,666	125,073	52,809
INTEREST EXPENSE
Interest expense	94,931	92,755	192,102	186,539
Allowance for borrowed funds used during construction	(4,321)	(1,218)	(8,714)	(4,244)
TOTAL	90,610	91,537	183,388	182,295
INCOME BEFORE INCOME TAXES	331,821	9,428	465,016	191,077
Income taxes	68,561	(307,231)	(42,268)	(276,442)
NET INCOME	263,260	316,659	507,284	467,519
Net income attributable to noncontrolling interests	819	258	1,373	258
EARNINGS APPLICABLE TO MEMBER'S EQUITY	$262,441	$316,401	$505,911	$467,261
See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands)		(In Thousands)
Net Income	$263,260	$316,659	$507,284	$467,519
Other comprehensive loss
Pension and other postretirement liabilities (net of tax benefit of $653, $181, $943, and $407)	(1,773)	(491)	(2,559)	(1,104)
Other comprehensive loss	(1,773)	(491)	(2,559)	(1,104)
Comprehensive Income	261,487	316,168	504,725	466,415
Net income attributable to noncontrolling interests	819	258	1,373	258
Comprehensive Income Applicable to Member’s Equity	$260,668	$315,910	$503,352	$466,157
See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	2023	2022
	(In Thousands)
OPERATING ACTIVITIES
Net income	$507,284	$467,519
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	423,535	414,975
Deferred income taxes, investment tax credits, and non-current taxes accrued	185	(198,525)
Changes in working capital:
Receivables	67,807	(114,357)
Fuel inventory	(14,907)	(183)
Accounts payable	(147,001)	(20,380)
Taxes accrued	48,015	(1,686)
Interest accrued	(5,396)	(3,263)
Deferred fuel costs	188,801	(367,321)
Other working capital accounts	(213,571)	(107,409)
Changes in provisions for estimated losses	3,909	294,067
Changes in other regulatory assets	448,144	859,908
Changes in other regulatory liabilities	217,746	(40,596)
Effect of securitization on regulatory asset	(491,150)	(1,190,338)
Changes in pension and other postretirement liabilities	(12,364)	(17,123)
Other	(92,977)	231,425
Net cash flow provided by operating activities	928,060	206,713
INVESTING ACTIVITIES
Construction expenditures	(889,118)	(1,565,051)
Allowance for equity funds used during construction	17,715	9,585
Nuclear fuel purchases	(88,403)	(77,561)
Proceeds from sale of nuclear fuel	16,733	37,634
Receipts from storm reserve escrow account	—	1,000,217
Payments to storm reserve escrow account	(6,602)	(1,290,282)
Purchase of preferred membership interests of affiliate	(1,457,676)	(3,163,572)
Redemption of preferred membership interests of affiliate	46,643	1,390,587
Proceeds from nuclear decommissioning trust fund sales	229,972	411,600
Investment in nuclear decommissioning trust funds	(258,420)	(419,873)
Changes in money pool receivable - net	(275,559)	7,162
Litigation proceeds from settlement agreement	—	5,695
Insurance proceeds received for property damages	6,184	—
Other	396	—
Net cash flow used in investing activities	(2,658,135)	(3,653,859)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	833,484	1,777,192
Retirement of long-term debt	(851,617)	(2,327,116)
Proceeds received by storm trust related to securitization	1,457,676	3,163,572
Capital contributions from parent	1,457,676	1,000,000
Change in money pool payable - net	(226,114)	—
Common equity distributions paid	(160,250)	(125,000)
Other	19,633	6,096
Net cash flow provided by financing activities	2,530,488	3,494,744
Net increase in cash and cash equivalents	800,413	47,598
Cash and cash equivalents at beginning of period	56,613	18,573
Cash and cash equivalents at end of period	$857,026	$66,171
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest - net of amount capitalized	$192,861	$183,686
Income taxes	($6,037)	$—
See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$260	$50,318
Temporary cash investments	856,766	6,295
Total cash and cash equivalents	857,026	56,613
Accounts receivable:
Customer	246,351	339,291
Allowance for doubtful accounts	(4,871)	(7,595)
Associated companies	349,096	88,896
Other	51,940	53,241
Accrued unbilled revenues	238,146	199,077
Total accounts receivable	880,662	672,910
Deferred fuel costs	—	159,183
Fuel inventory	56,766	41,859
Materials and supplies - at average cost	620,627	555,860
Deferred nuclear refueling outage costs	78,449	53,833
Prepayments and other	208,093	76,646
TOTAL	2,701,623	1,616,904
OTHER PROPERTY AND INVESTMENTS
Investment in affiliate preferred membership interests	4,574,605	3,163,572
Decommissioning trust funds	1,973,128	1,779,090
Storm reserve escrow account	300,008	293,406
Non-utility property - at cost (less accumulated depreciation)	401,134	350,723
Other	14,270	19,679
TOTAL	7,263,145	5,606,470
UTILITY PLANT
Electric	27,191,346	27,498,136
Natural gas	308,598	301,719
Construction work in progress	689,520	736,969
Nuclear fuel	272,045	212,941
TOTAL UTILITY PLANT	28,461,509	28,749,765
Less - accumulated depreciation and amortization	10,261,350	10,087,942
UTILITY PLANT - NET	18,200,159	18,661,823
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets	1,608,035	2,056,179
Deferred fuel costs	168,122	168,122
Other	39,389	35,057
TOTAL	1,815,546	2,259,358
TOTAL ASSETS	$29,980,473	$28,144,555
See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$1,010,000	$1,010,000
Accounts payable:
Associated companies	90,509	356,688
Other	452,457	589,355
Customer deposits	165,813	161,666
Taxes accrued	84,019	36,004
Interest accrued	95,940	101,336
Deferred fuel costs	29,618	—
Other	99,325	72,525
TOTAL	2,027,681	2,327,574
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	2,368,751	2,374,878
Accumulated deferred investment tax credits	95,555	97,868
Regulatory liability for income taxes - net	328,105	337,836
Other regulatory liabilities	1,265,439	1,037,962
Decommissioning	1,780,412	1,736,801
Accumulated provisions	320,223	316,314
Pension and other postretirement liabilities	377,536	389,631
Long-term debt	9,677,807	9,688,922
Other	429,271	343,321
TOTAL	16,643,099	16,323,533
Commitments and Contingencies
EQUITY
Member's equity	11,209,667	9,406,343
Accumulated other comprehensive income	52,811	55,370
Noncontrolling interests	47,215	31,735
TOTAL	11,309,693	9,493,448
TOTAL LIABILITIES AND EQUITY	$29,980,473	$28,144,555
See Notes to Financial Statements.

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ENTERGY LOUISIANA, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Noncontrolling Interests	Member’s<br>Equity	Accumulated <br>Other <br>Comprehensive <br>Income	Total
	(In Thousands)
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
Net income	258	316,401	—	316,659
Other comprehensive loss	—	—	(491)	(491)
Contributions from parent	—	1,000,000	—	1,000,000
Beneficial interest in storm trust	31,636	—	—	31,636
Other	—	(13)	—	(13)
Balance at June 30, 2022	$31,894	$9,514,529	$7,174	$9,553,597
Balance at December 31, 2022	$31,735	$9,406,343	$55,370	$9,493,448
Net income	554	243,470	—	244,024
Other comprehensive loss	—	—	(786)	(786)
Contributions from parent	—	1,457,676	—	1,457,676
Common equity distributions	—	(160,250)	—	(160,250)
Beneficial interest in storm trust	14,577	—	—	14,577
Distribution to LURC	(470)	—	—	(470)
Other	—	(28)	—	(28)
Balance at March 31, 2023	46,396	10,947,211	54,584	11,048,191
Net income	819	262,441	—	263,260
Other comprehensive loss	—	—	(1,773)	(1,773)
Other	—	15	—	15
Balance at June 30, 2023	$47,215	$11,209,667	$52,811	$11,309,693
See Notes to Financial Statements.

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ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Earnings Applicable to Member’s Equity

Second Quarter 2023 Compared to Second Quarter 2022

Earnings increased $12.9 million primarily due to higher retail electric price and lower other operation and maintenance expenses, partially offset by lower volume/weather, higher depreciation and amortization expenses, and higher interest expense.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Earnings increased $5.7 million primarily due to higher retail electric price, partially offset by lower volume/weather, higher depreciation and amortization expenses, and higher interest expense.

Operating Revenues

Second Quarter 2023 Compared to Second Quarter 2022

Following is an analysis of the change in operating revenues comparing the second quarter 2023 to the second quarter 2022:

	Amount
	(In Millions)
2022 operating revenues	$405.5
Fuel, rider, and other revenues that do not significantly affect net income	20.0
Retail electric price	27.7
Volume/weather	(8.1)
2023 operating revenues	$445.1

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 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 August 2022 and April 2023. See Note 2 to the financial statements herein and in the Form 10-K for further discussion of the formula rate plan filings.

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

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Entergy Mississippi, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Total electric energy sales for Entergy Mississippi for the three months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	1,323	1,419	(7)
Commercial	1,105	1,167	(5)
Industrial	565	593	(5)
Governmental	99	106	(7)
Total retail	3,092	3,285	(6)
Sales for resale:
Non-associated companies	1,209	677	79
Total	4,301	3,962	9

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

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2023 to the six months ended June 30, 2022:

	Amount
	(In Millions)
2022 operating revenues	$754.5
Fuel, rider, and other revenues that do not significantly affect net income	85.6
Retail electric price	39.8
Volume/weather	(22.3)
2023 operating revenues	$857.6

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

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Entergy Mississippi, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Total electric energy sales for Entergy Mississippi for the six months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	2,412	2,714	(11)
Commercial	2,120	2,188	(3)
Industrial	1,132	1,154	(2)
Governmental	192	201	(4)
Total retail	5,856	6,257	(6)
Sales for resale:
Non-associated companies	2,773	1,212	129
Total	8,629	7,469	16

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

Other Income Statement Variances

Second Quarter 2023 Compared to Second Quarter 2022

Other operation and maintenance expenses decreased primarily due to:

•a decrease of $2.5 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023 and a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs;

•a decrease of $1.7 million in transmission costs allocated by MISO; and

•a decrease of $1.7 million in non-nuclear generation expenses primarily due to a lower scope of work, including during plant outages, performed in 2023 as compared to 2022 and lower non-nuclear labor costs.

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

Depreciation and amortization expenses increased primarily due to additions to plant in service, including the Sunflower Solar facility, which was placed in service in September 2022.

Other income decreased primarily due to lower interest income from carrying costs related to the deferred fuel balance.

Interest expense increased primarily due to the issuance of $300 million of 5.0% Series mortgage bonds in May 2023 and the $150 million unsecured term loan drawn in June 2022.

Net loss attributable to noncontrolling interest reflects the earnings or losses attributable to the noncontrolling interest partner of the tax equity partnership for the Sunflower Solar facility under HLBV accounting. Entergy Mississippi recorded a regulatory charge of $3.6 million in second quarter 2023 to defer the difference between the losses allocated to the tax equity partner under the HLBV method of accounting and the earnings/losses that would have been allocated to the tax equity partner under its respective ownership percentage in

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Entergy Mississippi, LLC and Subsidiaries

Management's Financial Discussion and Analysis

the partnership. See Note 1 to the financial statements in the Form 10-K for discussion of the HLBV method of accounting.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Other operation and maintenance expenses decreased primarily due to:

•a decrease of $4.4 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023, a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities, and a revision to estimated incentive compensation expense in the first quarter of 2023. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs; and

•a decrease of $3.5 million in transmission costs allocated by MISO.

The decrease was partially offset by:

•an increase of $1.7 million in power delivery expenses primarily due to higher reliability costs and higher vegetation maintenance costs;

•an increase of $1.6 million in non-nuclear generation expenses primarily due to higher long term service agreement expenses; and

•several individually insignificant items.

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

Depreciation and amortization expenses increased primarily due to additions to plant in service, including the Sunflower Solar facility, which was placed in service in September 2022.

Other income decreased primarily due to lower interest income from carrying costs related to the deferred fuel balance.

Interest expense increased primarily due to the $150 million unsecured term loan drawn in June 2022 and the issuance of $300 million of 5.0% Series mortgage bonds in May 2023.

Net loss attributable to noncontrolling interest reflects the earnings or losses attributable to the noncontrolling interest partner of the tax equity partnership for the Sunflower Solar facility under HLBV accounting. Entergy Mississippi recorded a regulatory charge of $5.1 million for the six months ended June 30, 2023 to defer the difference between the losses allocated to the tax equity partner under the HLBV method of accounting and the earnings/losses that would have been allocated to the tax equity partner under its respective ownership percentage in the partnership. See Note 1 to the financial statements in the Form 10-K for discussion of the HLBV method of accounting.

Income Taxes

The effective income tax rates were 25% for the second quarter 2023 and 24.8% for the six months ended June 30, 2023. The differences in the effective income tax rates for the second quarter 2023 and the six months ended June 30, 2023 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

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Entergy Mississippi, LLC and Subsidiaries

Management's Financial Discussion and Analysis

The effective income tax rates were 22% for the second quarter 2022 and 21.3% for the six months ended June 30, 2022. The differences in the effective income tax rates for the second quarter 2022 and the six months ended June 30, 2022 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

Income Tax Legislation

Liquidity and Capital Resources

Cash Flow

Cash flows for the six months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Thousands)
Cash and cash equivalents at beginning of period	$16,979	$47,627
Net cash provided by (used in):
Operating activities	173,548	20,404
Investing activities	(276,717)	(295,818)
Financing activities	94,643	253,895
Net decrease in cash and cash equivalents	(8,526)	(21,519)
Cash and cash equivalents at end of period	$8,453	$26,108

Operating Activities

Net cash flow provided by operating activities increased $153.1 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•the timing of recovery of fuel and purchased power costs. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery;

•higher collections from customers; and

•the timing of payments to vendors.

The increase was partially offset by an increase of $10.8 million in storm spending in 2023 as compared to 2022 and an increase of $9.2 million in interest paid.

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Entergy Mississippi, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Investing Activities

Net cash flow used in investing activities decreased $19.1 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to the initial payment of approximately $105.1 million in May 2022 as compared to the substantial completion payment of approximately $30.4 million in April 2023 for the purchase of the Sunflower Solar facility by a consolidated tax equity partnership. The decrease was partially offset by:

•an increase of $36.7 million in transmission construction expenditures primarily due to increased spending on various transmission projects in 2023;

•an increase of $11.2 million in distribution construction expenditures primarily due to increased investment in the reliability and infrastructure of Entergy Mississippi’s distribution system; and

•money pool activity.

Decreases in Entergy Mississippi’s receivable from the money pool are a source of cash flow, and Entergy Mississippi’s receivable from the money pool decreased $26.9 million for the six months ended June 30, 2023 compared to decreasing by $37.4 million for the six months ended June 30, 2022. The money pool is an intercompany borrowing arrangement designed to reduce the Utility’s subsidiaries’ need for external short-term borrowings.

Financing Activities

Net cash flow provided by financing activities decreased $159.3 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•the repayment, prior to maturity, of $250 million of 3.10% Series mortgage bonds in June 2023;

•proceeds received in June 2022 from a $150 million unsecured term loan due December 2023;

•borrowings of $100 million in 2022 on Entergy Mississippi’s credit facility;

•the repayment, prior to maturity, in May 2023, of $50 million of an unsecured term loan due December 2023; and

•$40 million in common equity distributions paid in 2023 in order to maintain Entergy Mississippi’s capital structure.

The decrease was partially offset by:

•the issuance of $300 million of 5.0% Series mortgage bonds in May 2023;

•capital contributions of $25.7 million received in April 2023 as compared to $9.6 million received in May 2022, both from the noncontrolling tax equity investor in MS Sunflower Partnership, LLC and used by the partnership for payments in the acquisition of the Sunflower Solar facility. See Note 14 to the financial statements in the Form 10-K for discussion of the Sunflower Solar facility purchase; and

•money pool activity.

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 $104.6 million for the six months ended June 30, 2023.

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 Mississippi, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Capital Structure

Entergy Mississippi’s debt to capital ratio is shown in the following table.

	June 30, <br>2023		December 31, <br>2022
Debt to capital	52.7	%	53.4	%
Effect of subtracting cash	(0.1	%)	(0.2	%)
Net debt to net capital (non-GAAP)	52.6	%	53.2	%

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 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. The net debt to net capital ratio is a non-GAAP measure. Entergy Mississippi 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:

June 30, <br>2023	December 31, <br>2022	June 30,<br> 2022	December 31, <br>2021
(In Thousands)
($104,624)	$26,879	$2,984	$40,456

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

As of June 30, 2023, Entergy Mississippi had three separate credit facilities in the aggregate amount of $95 million, each of which expired in July 2023. As of June 30, 2023, there were no cash borrowings outstanding under these credit facilities. Also, Entergy Mississippi has a credit facility in the amount of $150 million scheduled to expire in July 2025. As of June 30, 2023, there were no cash borrowings outstanding under the credit facility. 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 June 30, 2023, $6.7 million in MISO letters of credit and $9.2 million in 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.

Sunflower Solar

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Entergy Mississippi, LLC and Subsidiaries

Management's Financial Discussion and Analysis

then used to make the substantial completion payment of $30.4 million for acquisition of the facility. See Note 14 to the financial statements in the Form 10-K for a discussion of Entergy Mississippi’s investment in the Sunflower Solar facility.

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 state and local rate regulation and fuel-cost recovery. The following are updates to that discussion.

Retail Rates

2023 Formula Rate Plan Filing

In March 2023, Entergy Mississippi submitted its formula rate plan 2023 test year filing and 2022 look-back filing showing Entergy Mississippi’s earned return on rate base for the historical 2022 calendar year to be below the formula rate plan bandwidth and projected earned return for the 2023 calendar year to be below the formula rate plan bandwidth. The 2023 test year filing shows a $39.8 million rate increase is necessary to reset Entergy Mississippi’s earned return on rate base to the specified point of adjustment of 6.67%, within the formula rate plan bandwidth. The 2022 look-back filing compares actual 2022 results to the approved benchmark return on rate base and reflects the need for a $19.8 million temporary increase in formula rate plan revenues, including the refund of a $1.3 million over-recovery resulting from the demand-side management costs true-up in 2022. In fourth quarter 2022, Entergy Mississippi recorded a regulatory asset of $18.2 million in connection with the look-back feature of the formula rate plan to reflect that the 2022 estimated earned return was below the formula rate plan bandwidth. In accordance with the provisions of the formula rate plan, Entergy Mississippi implemented a $27.9 million interim rate increase, reflecting a cap equal to 2% of 2022 retail revenues, effective in April 2023.

Fuel and purchased power recovery

In June 2023 the MPSC approved the joint stipulation agreement between Entergy Mississippi and the Mississippi Public Utilities Staff for Entergy Mississippi’s 2023 formula rate plan filing. The stipulation directed Entergy Mississippi to make a compliance filing to revise its power management cost adjustment factor, to revise its grid modernization cost adjustment factor, and to include a revision to reduce the net energy cost factor to a level necessary to reflect an average natural gas price of $4.50 per MMBtu. The MPSC approved the compliance filing in June 2023, effective for July 2023 bills. See “Retail Rates - 2023 Formula Rate Plan Filing” above for further discussion of the 2023 formula rate plan filing and the joint stipulation agreement.

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Entergy Mississippi, LLC and Subsidiaries

Management's Financial Discussion and Analysis

RenewABLE Community Option

In January 2022, Entergy Mississippi filed its RenewABLE Community Option (Schedule RCO), an offering for qualifying non-residential customers to subscribe to renewable resource capacity to satisfy their environmental, sustainability, and governance goals. The MPSC approved Schedule RCO in December 2022. Registration for the Schedule RCO launched in May 2023 and subscriptions as of June 30, 2023 totaled 16 MW of the 40 MW available.

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.

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 AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$445,130	$405,459	$857,558	$754,488
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	140,530	43,671	301,815	110,948
Purchased power	59,140	89,346	122,954	150,558
Other operation and maintenance	68,600	74,898	138,418	140,709
Taxes other than income taxes	35,301	32,484	71,035	65,214
Depreciation and amortization	65,346	60,618	129,375	120,702
Other regulatory charges (credits) - net	(25,947)	23,853	(58,790)	27,760
TOTAL	342,970	324,870	704,807	615,891
OPERATING INCOME	102,160	80,589	152,751	138,597
OTHER INCOME
Allowance for equity funds used during construction	2,169	1,495	4,053	2,573
Interest and investment income	1,319	34	1,783	98
Miscellaneous - net	(3,438)	990	(5,521)	(164)
TOTAL	50	2,519	315	2,507
INTEREST EXPENSE
Interest expense	25,433	21,003	49,377	41,437
Allowance for borrowed funds used during construction	(902)	(658)	(1,685)	(1,123)
TOTAL	24,531	20,345	47,692	40,314
INCOME BEFORE INCOME TAXES	77,679	62,763	105,374	100,790
Income taxes	19,414	13,808	26,169	21,481
NET INCOME	58,265	48,955	79,205	79,309
Net loss attributable to noncontrolling interest	(3,623)	—	(5,764)	—
EARNINGS APPLICABLE TO MEMBER'S EQUITY	$61,888	$48,955	$84,969	$79,309
See Notes to Financial Statements.

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ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	2023	2022
	(In Thousands)
OPERATING ACTIVITIES
Net income	$79,205	$79,309
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation and amortization	129,375	120,702
Deferred income taxes, investment tax credits, and non-current taxes accrued	26,736	17,628
Changes in assets and liabilities:
Receivables	(6,155)	(38,137)
Fuel inventory	(5,919)	(5,352)
Accounts payable	(32,930)	23,252
Taxes accrued	(45,044)	(36,021)
Interest accrued	(724)	498
Deferred fuel costs	149,189	(124,752)
Other working capital accounts	(25,035)	(36,211)
Provisions for estimated losses	1,731	(194)
Other regulatory assets	(39,846)	3,332
Other regulatory liabilities	(55,443)	15,441
Pension and other postretirement liabilities	(8,261)	(8,004)
Other assets and liabilities	6,669	8,913
Net cash flow provided by operating activities	173,548	20,404
INVESTING ACTIVITIES
Construction expenditures	(276,530)	(230,683)
Allowance for equity funds used during construction	4,053	2,573
Changes in money pool receivable - net	26,879	37,472
Payment for purchase of assets	(30,433)	(105,149)
Increase in other investments	(686)	(31)
Net cash flow used in investing activities	(276,717)	(295,818)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	396,861	249,746
Retirement of long-term debt	(400,000)	—
Capital contributions from noncontrolling interest	25,708	9,595
Change in money pool payable - net	104,624	—
Common equity distributions paid	(40,000)	—
Other	7,450	(5,446)
Net cash flow provided by financing activities	94,643	253,895
Net decrease in cash and cash equivalents	(8,526)	(21,519)
Cash and cash equivalents at beginning of period	16,979	47,627
Cash and cash equivalents at end of period	$8,453	$26,108
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$48,771	$39,620
See Notes to Financial Statements.

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ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$26	$26
Temporary cash investments	8,427	16,953
Total cash and cash equivalents	8,453	16,979
Accounts receivable:
Customer	112,206	99,504
Allowance for doubtful accounts	(2,371)	(2,472)
Associated companies	7,724	37,673
Other	17,369	34,564
Accrued unbilled revenues	87,090	73,473
Total accounts receivable	222,018	242,742
Deferred fuel costs	—	143,211
Fuel inventory - at average cost	21,467	15,548
Materials and supplies - at average cost	95,976	84,346
Prepayments and other	13,735	9,603
TOTAL	361,649	512,429
OTHER PROPERTY AND INVESTMENTS
Non-utility property - at cost (less accumulated depreciation)	4,504	4,512
Storm reserve escrow account	34,304	33,549
Other	841	910
TOTAL	39,649	38,971
UTILITY PLANT
Electric	7,288,046	7,079,849
Construction work in progress	236,022	170,191
TOTAL UTILITY PLANT	7,524,068	7,250,040
Less - accumulated depreciation and amortization	2,351,620	2,264,786
UTILITY PLANT - NET	5,172,448	4,985,254
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets	559,306	519,460
Other	26,680	22,650
TOTAL	585,986	542,110
TOTAL ASSETS	$6,159,732	$6,078,764
See Notes to Financial Statements.

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ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$100,000	$400,000
Accounts payable:
Associated companies	153,510	60,532
Other	162,222	176,162
Customer deposits	90,302	89,668
Taxes accrued	79,861	124,905
Interest accrued	17,484	18,208
Deferred fuel costs	5,978	—
Other	29,338	38,908
TOTAL	638,695	908,383
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	810,639	780,030
Accumulated deferred investment tax credits	14,393	14,591
Regulatory liability for income taxes - net	196,612	202,058
Other regulatory liabilities	29,868	79,865
Asset retirement cost liabilities	8,010	7,797
Accumulated provisions	39,240	37,509
Pension and other postretirement liabilities	15,266	23,742
Long-term debt	2,228,900	1,931,096
Other	72,659	53,156
TOTAL	3,415,587	3,129,844
Commitments and Contingencies
EQUITY
Member's equity	2,082,159	2,037,190
Noncontrolling interest	23,291	3,347
TOTAL	2,105,450	2,040,537
TOTAL LIABILITIES AND EQUITY	$6,159,732	$6,078,764
See Notes to Financial Statements.

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ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Noncontrolling Interest	Member's Equity	Total
		(In Thousands)
Balance at December 31, 2021	$—	$1,839,568	$1,839,568
Net income	—	30,355	30,355
Balance at March 31, 2022	—	1,869,923	1,869,923
Net income	—	48,955	48,955
Capital contribution from noncontrolling interest	9,595	—	9,595
Balance at June 30, 2022	$9,595	$1,918,878	$1,928,473
Balance at December 31, 2022	$3,347	$2,037,190	$2,040,537
Net income (loss)	(2,141)	23,081	20,940
Common equity distributions	—	(12,500)	(12,500)
Balance at March 31, 2023	1,206	2,047,771	2,048,977
Net income (loss)	(3,623)	61,888	58,265
Common equity distributions	—	(27,500)	(27,500)
Capital contribution from noncontrolling interest	25,708	—	25,708
Balance at June 30, 2023	$23,291	$2,082,159	$2,105,450
See Notes to Financial Statements.

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ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Second Quarter 2023 Compared to Second Quarter 2022

Net income decreased $5.7 million primarily due to lower volume/weather, partially offset by higher retail electric price and lower other operation and maintenance expenses.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Net income decreased $10.7 million primarily due to lower volume/weather, a higher effective income tax rate, and higher taxes other than income taxes, partially offset by higher retail electric price, lower other operation and maintenance expenses, and higher other income.

Operating Revenues

Second Quarter 2023 Compared to Second Quarter 2022

Following is an analysis of the change in operating revenues comparing the second quarter 2023 to second quarter 2022:

	Amount
	(In Millions)
2022 operating revenues	$254.2
Fuel, rider, and other revenues that do not significantly affect net income	(57.8)
Volume/weather	(13.6)
Retail electric price	5.2
2023 operating revenues	$188.0

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

The volume/weather variance is primarily due to a decrease in weather-adjusted residential and commercial usage and the effect of less favorable weather on residential and commercial sales.

The retail electric price variance is primarily due to a rate increase effective September 2022 in accordance with the terms of the 2022 formula rate plan filing. See Note 2 to the financial statements in the Form 10-K for further discussion of the formula rate plan filing.

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Entergy New Orleans, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Total electric energy sales for Entergy New Orleans for the three months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	576	669	(14)
Commercial	508	543	(6)
Industrial	97	116	(16)
Governmental	187	206	(9)
Total retail	1,368	1,534	(11)
Sales for resale:
Non-associated companies	551	605	(9)
Total	1,919	2,139	(10)

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

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2023 to the six months ended June 30, 2022:

	Amount
	(In Millions)
2022 operating revenues	$452.5
Fuel, rider, and other revenues that do not significantly affect net income	(46.6)
Volume/weather	(18.3)
Retail electric price	9.2
2023 operating revenues	$396.8

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales and a decrease in weather-adjusted residential usage.

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Entergy New Orleans, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Total electric energy sales for Entergy New Orleans for the six months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	1,030	1,207	(15)
Commercial	995	1,008	(1)
Industrial	196	210	(7)
Governmental	368	383	(4)
Total retail	2,589	2,808	(8)
Sales for resale:
Non-associated companies	1,594	1,321	21
Total	4,183	4,129	1

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

Other Income Statement Variances

Second Quarter 2023 Compared to Second Quarter 2022

Other operation and maintenance expenses decreased primarily due to:

•a decrease of $1.5 million in bad debt expense;

•a decrease of $0.9 million in compensation and benefits costs primarily due to a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities and lower health and welfare costs as a result of higher prescription drug rebates in 2023. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs;

•a decrease of $0.8 million in energy efficiency expenses primarily due to the timing of recovery from customers; and

•several individually insignificant items.

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other income increased primarily due to higher interest earned on money pool investments, partially offset by higher net periodic pension and other postretirement benefits non-service costs as a result of an increase in the discount rates used to value the benefits liabilities and the amortization of 2022 trust asset losses. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs.

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Entergy New Orleans, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Other operation and maintenance expenses decreased primarily due to:

•a decrease of $2.4 million in bad debt expense;

•a decrease of $1.8 million in compensation and benefits costs primarily due to a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities and lower health and welfare costs as a result of higher prescription drug rebates in 2023. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs; and

•a decrease of $1 million in energy efficiency expenses primarily due to the timing of recovery from customers.

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

Depreciation and amortization expenses increased primarily due to additions to plant in service.

Other income increased primarily due to higher interest earned on money pool investments.

Interest expense increased primarily due to interest on the $34 million regulatory liability recorded when Entergy New Orleans received a refund from System Energy in January 2023 related to the sale-leaseback renewal costs and depreciation litigation. See Note 2 to the financial statements herein and in the Form 10-K for further discussion of the refund and the related proceedings.

Income Taxes

The effective income tax rates were 29.4% for second quarter 2023 and 30.5% for the six months ended June 30, 2023. The differences in the effective income tax rates for the second quarter and the six months ended June 30, 2023 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes and the amortization of state accumulated deferred income taxes as a result of tax rate changes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rate was 27.2% for second quarter 2022. The difference in the effective income tax rate for second quarter 2022 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rate was 23.4% for the six months ended June 30, 2022. The difference in the effective income tax rate for the six months ended June 30, 2022 versus the federal statutory rate of 21% was primarily due to the accrual for state income taxes, partially offset by the amortization of excess accumulated deferred income taxes and certain book and tax differences related to utility plant items. 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 of and regulatory activity regarding the Tax Cuts and Jobs Act.

Income Tax Legislation

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Entergy New Orleans, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Liquidity and Capital Resources

Cash Flow

Cash flows for the six months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Thousands)
Cash and cash equivalents at beginning of period	$4,464	$42,862
Net cash provided by (used in):
Operating activities	100,950	55,623
Investing activities	12,900	(81,900)
Financing activities	23,057	9,766
Net increase (decrease) in cash and cash equivalents	136,907	(16,511)
Cash and cash equivalents at end of period	$141,371	$26,351

Operating Activities

Net cash flow provided by operating activities increased $45.3 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•the timing of payments to vendors;

•the timing of recovery of fuel and purchased power costs. See Note 2 to the financial statements in the Form 10-K for a discussion of fuel and purchased power cost recovery;

•higher collections from customers;

•the refund of $34 million received from System Energy in January 2023 related to the sale-leaseback renewal costs and depreciation litigation as calculated in System Energy’s January 2023 compliance report filed with the FERC. See Note 2 to the financial statements herein and in the Form 10-K for further discussion of the refund and the related proceedings; and

•a decrease of $16.9 million in storm spending primarily due to Hurricane Ida restoration efforts in 2022.

The increase was partially offset by higher receipts from associated companies in 2022.

Investing Activities

Entergy New Orleans’s investing activities provided $12.9 million of cash for the six months ended June 30, 2023 compared to using $81.9 million of cash for the six months ended June 30, 2022 primarily due to the following activity:

•money pool activity;

•a decrease of $33.7 million in distribution construction expenditures primarily due to higher capital expenditures for Hurricane Ida storm restoration efforts in 2022, partially offset by increased investment in the reliability and infrastructure of Entergy New Orleans’s distribution system in 2023; and

•an increase of $9.9 million in transmission construction expenditures primarily due to increased investment in the reliability and infrastructure of Entergy New Orleans’s transmission system.

Decreases in Entergy New Orleans’s receivable from the money pool are a source of cash flow, and Entergy New Orleans’s receivable from the money pool decreased $101.8 million for the six months ended June 30, 2023

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Entergy New Orleans, LLC and Subsidiaries

Management's Financial Discussion and Analysis

compared to decreasing by $33.5 million for the six months ended June 30, 2022. The money pool is an intercompany borrowing arrangement designed to reduce the Utility subsidiaries’ need for external short-term borrowings.

Financing Activities

Net cash flow provided by financing activities increased $13.3 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to additional borrowings of $15 million in May 2023 on an unsecured term loan due June 2024. 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.

Capital Structure

Entergy New Orleans’s debt to capital ratio is shown in the following table.

	June 30, <br>2023		December 31, <br>2022
Debt to capital	52.1	%	52.6	%
Effect of excluding securitization bonds	(0.4	%)	(0.6	%)
Debt to capital, excluding securitization bonds (non-GAAP) (a)	51.7	%	52.0	%
Effect of subtracting cash	(5.0	%)	(0.1	%)
Net debt to net capital, excluding securitization bonds (non-GAAP) (a)	46.7	%	51.9	%

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

Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings, finance lease obligations, long-term debt, including the currently maturing portion, and the long-term payable due to an associated company. Capital consists of debt and equity. Net capital consists of capital less cash and cash equivalents. The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures. Entergy New Orleans 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 New Orleans’s financial condition because the securitization bonds are non-recourse to Entergy New Orleans, as more fully described in Note 5 to the financial statements in the Form 10-K. Entergy New Orleans 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 New Orleans’s financial condition because net debt indicates Entergy New Orleans’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 New Orleans’s uses and sources of capital. Following are updates to the information provided in the Form 10-K.

Entergy New Orleans’s receivables from the money pool were as follows:

June 30, <br>2023	December 31, <br>2022	June 30, <br>2022	December 31, <br>2021
(In Thousands)
$45,487	$147,254	$2,937	$36,410

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

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Entergy New Orleans, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Entergy New Orleans has a credit facility in the amount of $25 million scheduled to expire in June 2024. The credit facility includes fronting commitments for the issuance of letters of credit against $10 million of the borrowing capacity of the facility. As of June 30, 2023, there were no cash borrowings and no letters of credit outstanding under the credit facility. In addition, Entergy New Orleans is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of June 30, 2023, a $1 million letter of credit was outstanding under Entergy New Orleans’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

System Resilience and Storm Hardening

State and Local Rate Regulation

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – State and Local Rate Regulation” in the Form 10-K for a discussion of state and local rate regulation. The following are updates to that discussion.

Retail Rates

2023 Formula Rate Plan Filing

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Entergy New Orleans, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Reliability Investigation

As discussed in the Form 10-K, in April 2018 the City Council adopted a resolution directing Entergy New Orleans to demonstrate that it has been prudent in the management and maintenance of the reliability of its distribution system. Entergy New Orleans responded to this resolution in June 2018 and filed a revised reliability plan with the City Council in July 2018. The City Council also approved a resolution that opened a prudence investigation into whether Entergy New Orleans was imprudent for not acting sooner to address outages in New Orleans and whether fines should be imposed. In January 2019, Entergy New Orleans filed testimony in response to the prudence investigation asserting that it had been prudent in managing system reliability. In April 2019 the City Council advisors filed comments and testimony asserting that Entergy New Orleans did not act prudently in maintaining and improving its distribution system reliability in recent years and recommending that a financial penalty in the range of $1.5 million to $2 million should be assessed. Entergy New Orleans disagreed with the recommendation and submitted rebuttal testimony and rebuttal comments in June 2019. In November 2019 the City Council passed a resolution that penalized Entergy New Orleans $1 million for alleged imprudence in the maintenance of its distribution system. In December 2019, Entergy New Orleans filed suit in Louisiana state court seeking judicial review of the City Council’s resolution. In June 2022 the Orleans Civil District Court issued a written judgment that the penalty be set aside, reversed, and vacated. In August 2022 the Orleans Civil District Court issued written reasons for its judgment and also granted a post-judgment motion to remand for the City Council to take actions consistent with its judgment. In April 2023 the City Council approved a resolution that established a procedural schedule to allow for the submission of additional evidence regarding the penalty discussed above. In May 2023, Entergy New Orleans filed with the Orleans Civil District Court a petition for judicial review and (or alternatively) declaratory judgment of, together with a request for injunctive relief from, the City Council’s April 2023 resolution. In June 2023 the City Council filed responsive pleadings requesting the Orleans Civil District Court dismiss the suit as premature. Entergy New Orleans expects to file its opposition to the responsive pleadings by the applicable deadlines.

Also in August 2022 the City Council approved a resolution establishing a 30-day comment period on proposed minimum reliability standards and an associated penalty mechanism. In September 2022, Entergy New Orleans filed comments to the proposed plan including a request for an additional round of comments. In February 2023 the City Council approved a resolution adopting the proposed reliability standards, including a minimum annual performance level for Entergy New Orleans’s distribution system, as well as associated penalty mechanisms. In April 2023, Entergy New Orleans filed the compliance filings required by the resolution for calendar year 2023. The first year for which the City Council may assess a penalty for distribution system reliability performance is calendar year 2024.

Renewable Portfolio Standard Rulemaking

As discussed in the Form 10-K, in May 2021 the City Council approved the draft rule, as amended, establishing the Renewable and Clean Portfolio Standard. In May 2023, Entergy New Orleans submitted its compliance demonstration report to the City Council for the 2022 compliance year, which describes and demonstrates Entergy New Orleans’s compliance with the Renewable and Clean Portfolio Standard in 2022 and satisfies certain informational requirements. Entergy New Orleans requested, among other things, that the City Council determine that Entergy New Orleans achieved the target under the portfolio standard for 2022 and remains within the customer protection cost cap, and that the City Council approve a proposal to recover costs associated with 2022 compliance. In July 2023 intervenors filed comments on the compliance demonstration report, and Entergy New Orleans expects to respond to those comments in August 2023.

Federal Regulation

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

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Entergy New Orleans, LLC and Subsidiaries

Management's Financial Discussion and Analysis

Nuclear Matters

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Nuclear Matters” in the Form 10-K for further 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.

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 New Orleans’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 NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$168,216	$224,084	$337,911	$378,730
Natural gas	19,800	30,165	58,925	73,791
TOTAL	188,016	254,249	396,836	452,521
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	18,974	54,815	70,998	98,212
Purchased power	65,929	83,088	132,549	139,558
Other operation and maintenance	38,961	43,715	72,188	77,367
Taxes other than income taxes	14,480	14,444	30,904	28,433
Depreciation and amortization	20,064	17,951	39,639	37,766
Other regulatory charges (credits) - net	2,288	5,354	1,187	9,539
TOTAL	160,696	219,367	347,465	390,875
OPERATING INCOME	27,320	34,882	49,371	61,646
OTHER INCOME
Allowance for equity funds used during construction	280	(449)	730	(80)
Interest and investment income	2,400	68	4,451	92
Miscellaneous - net	(517)	1,221	(744)	950
TOTAL	2,163	840	4,437	962
INTEREST EXPENSE
Interest expense	10,003	8,698	19,622	17,392
Allowance for borrowed funds used during construction	(136)	159	(355)	(40)
TOTAL	9,867	8,857	19,267	17,352
INCOME BEFORE INCOME TAXES	19,616	26,865	34,541	45,256
Income taxes	5,759	7,319	10,542	10,584
NET INCOME	$13,857	$19,546	$23,999	$34,672
See Notes to Financial Statements.

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ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	2023	2022
	(In Thousands)
OPERATING ACTIVITIES
Net income	$23,999	$34,672
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation and amortization	39,639	37,766
Deferred income taxes, investment tax credits, and non-current taxes accrued	10,247	16,265
Changes in assets and liabilities:
Receivables	23,357	9,240
Fuel inventory	3,868	(844)
Accounts payable	(24,536)	3,909
Taxes accrued	(657)	(2,524)
Interest accrued	194	(361)
Deferred fuel costs	4,315	(31,599)
Other working capital accounts	(14,016)	(9,725)
Provisions for estimated losses	3,550	6,319
Other regulatory assets	2,930	24,541
Other regulatory liabilities	30,722	(15,456)
Pension and other postretirement liabilities	(2,454)	(4,741)
Other assets and liabilities	(208)	(11,839)
Net cash flow provided by operating activities	100,950	55,623
INVESTING ACTIVITIES
Construction expenditures	(88,480)	(115,552)
Allowance for equity funds used during construction	730	(80)
Changes in money pool receivable - net	101,767	33,473
Changes in securitization account	555	259
Increase in other investments	(1,672)	—
Net cash flow provided by (used in) investing activities	12,900	(81,900)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	14,641	—
Retirement of long-term debt	(6,073)	(5,916)
Contributions from customer for construction	15,000	15,000
Other	(511)	682
Net cash flow provided by financing activities	23,057	9,766
Net increase (decrease) in cash and cash equivalents	136,907	(16,511)
Cash and cash equivalents at beginning of period	4,464	42,862
Cash and cash equivalents at end of period	$141,371	$26,351
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$18,719	$17,055
Income taxes	$2	$—
See Notes to Financial Statements.

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ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$26	$27
Temporary cash investments	141,345	4,437
Total cash and cash equivalents	141,371	4,464
Securitization recovery trust account	1,680	2,235
Accounts receivable:
Customer	68,524	93,288
Allowance for doubtful accounts	(7,653)	(11,909)
Associated companies	47,689	149,927
Other	5,992	6,110
Accrued unbilled revenues	35,024	37,284
Total accounts receivable	149,576	274,700
Deferred fuel costs	5,838	10,153
Fuel inventory - at average cost	2,004	5,872
Materials and supplies - at average cost	26,860	22,498
Prepayments and other	19,067	6,312
TOTAL	346,396	326,234
OTHER PROPERTY AND INVESTMENTS
Non-utility property at cost (less accumulated depreciation)	832	1,050
Storm reserve escrow account	76,723	75,000
Other	624	675
TOTAL	78,179	76,725
UTILITY PLANT
Electric	1,989,407	1,934,837
Natural gas	396,968	390,252
Construction work in progress	26,582	39,607
TOTAL UTILITY PLANT	2,412,957	2,364,696
Less - accumulated depreciation and amortization	828,664	808,224
UTILITY PLANT - NET	1,584,293	1,556,472
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Deferred fuel costs	4,080	4,080
Other regulatory assets (includes securitization property of $7,952 as of June 30, 2023 and $13,363 as of December 31, 2022)	199,182	202,112
Other	51,549	46,778
TOTAL	254,811	252,970
TOTAL ASSETS	$2,263,679	$2,212,401
See Notes to Financial Statements.

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ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$185,000	$170,000
Payable due to associated company	1,306	1,306
Accounts payable:
Associated companies	43,126	53,258
Other	40,231	57,291
Customer deposits	32,299	31,826
Taxes accrued	9,651	10,308
Interest accrued	8,274	8,080
Other	9,271	6,560
TOTAL	329,158	338,629
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	391,231	385,259
Accumulated deferred investment tax credits	16,469	16,481
Regulatory liability for income taxes - net	42,162	39,738
Other regulatory liabilities	49,033	20,735
Asset retirement cost liabilities	4,101	—
Accumulated provisions	90,598	87,048
Long-term debt (includes securitization bonds of $11,745 as of June 30, 2023 and $17,697 as of December 31, 2022)	590,225	596,047
Long-term payable due to associated company	8,279	8,279
Other	15,608	17,369
TOTAL	1,207,706	1,170,956
Commitments and Contingencies
EQUITY
Member's equity	726,815	702,816
TOTAL	726,815	702,816
TOTAL LIABILITIES AND EQUITY	$2,263,679	$2,212,401
See Notes to Financial Statements.

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ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN MEMBER'S EQUITY
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Member's Equity
	(In Thousands)
Balance at December 31, 2021	$638,715
Net income	15,126
Balance at March 31, 2022	653,841
Net income	19,546
Balance at June 30, 2022	$673,387
Balance at December 31, 2022	$702,816
Net income	10,142
Balance at March 31, 2023	712,958
Net income	13,857
Balance at June 30, 2023	$726,815
See Notes to Financial Statements.

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ENTERGY TEXAS, INC. AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

Results of Operations

Net Income

Second Quarter 2023 Compared to Second Quarter 2022

Net income decreased $9 million primarily due to the recognition of the equity component of carrying costs as part of the securitization of the Hurricane Laura, Hurricane Delta, and Winter Storm Uri system restoration costs in April 2022, lower volume/weather, and higher taxes other than income taxes. The decrease was partially offset by higher retail electric price and lower other operation and maintenance expenses.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Net income decreased $17.8 million primarily due to the recognition of the equity component of carrying costs as part of the securitization of the Hurricane Laura, Hurricane Delta, and Winter Storm Uri system restoration costs in April 2022, lower volume/weather, higher taxes other than income taxes, and higher interest expense. The decrease was partially offset by higher retail electric price, lower other operation and maintenance expenses, and higher other income.

Operating Revenues

Second Quarter 2023 Compared to Second Quarter 2022

Following is an analysis of the change in operating revenues comparing the second quarter 2023 to the second quarter 2022:

	Amount
	(In Millions)
2022 operating revenues	$564.6
Fuel, rider, and other revenues that do not significantly affect net income	(92.4)
System restoration carrying costs	(21.7)
Volume/weather	(8.8)
Return of unprotected excess accumulated deferred income taxes to customers	7.2
Retail electric price	15.5
2023 operating revenues	$464.4

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

System restoration carrying costs represent the equity component of system restoration carrying costs, recorded in second quarter 2022, recognized as part of the securitization of the Hurricane Laura, Hurricane Delta, and Winter Storm Uri system restoration costs in April 2022. See Note 2 to the financial statements in the Form 10-K for a discussion of the securitization.

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Entergy Texas, Inc. and Subsidiaries

Management's Financial Discussion and Analysis

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

The return of unprotected excess accumulated deferred income taxes to customers resulted from the return of unprotected excess accumulated deferred income taxes through a rider effective October 2018 in response to the enactment of the Tax Cuts and Jobs Act. In the second quarter 2022, $7.2 million was returned to customers through reductions in operating revenues. There was no return of unprotected excess accumulated deferred income taxes to customers for the second quarter 2023. There was 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 discussion of regulatory activity regarding the Tax Cuts and Jobs Act.

The retail electric price variance is primarily due to an interim increase in the annual base rate, including the realignment of the costs previously being collected through the distribution and transmission cost recovery factor riders and the generation cost recovery rider to base rates, effective June 2023 and the implementation of the generation cost recovery relate-back rider for the Hardin County Peaking Facility effective May 2023. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the 2022 base rate case and the generation cost recovery rider filings.

Total electric energy sales for Entergy Texas for the three months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	1,667	1,760	(5)
Commercial	1,181	1,231	(4)
Industrial	2,399	2,489	(4)
Governmental	67	67	—
Total retail	5,314	5,547	(4)
Sales for resale:
Associated companies	—	89	(100)
Non-associated companies	136	161	(16)
Total	5,450	5,797	(6)

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

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Entergy Texas, Inc. and Subsidiaries

Management's Financial Discussion and Analysis

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Following is an analysis of the change in operating revenues comparing the six months ended June 30, 2023 to the six months ended June 30, 2022:

	Amount
	(In Millions)
2022 operating revenues	$1,037.1
Fuel, rider, and other revenues that do not significantly affect net income	(60.3)
System restoration carrying costs	(21.7)
Volume/weather	(21.4)
Return of unprotected excess accumulated deferred income taxes to customers	13.7
Retail electric price	24.5
2023 operating revenues	$971.9

The volume/weather variance is primarily due to the effect of less favorable weather on residential sales.

The return of unprotected excess accumulated deferred income taxes to customers resulted from the return of unprotected excess accumulated deferred income taxes through a rider effective October 2018 in response to the enactment of the Tax Cuts and Jobs Act. In the six months ended June 30, 2022, $13.7 million was returned to customers through reductions in operating revenues. There was no return of unprotected excess accumulated deferred income taxes to customers for the six months ended June 30, 2023. There was 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 discussion of regulatory activity regarding the Tax Cuts and Jobs Act.

The retail electric price variance is primarily due to:

•the implementation of the generation cost recovery relate-back rider for the Hardin County Peaking Facility effective May 2023; and

•an increase in the transmission cost recovery factor rider effective March 2022.

See Note 2 to the financial statements herein and in the Form 10-K for discussion of the 2022 base rate case and the generation cost recovery rider filings. See Note 2 to the financial statements in the Form 10-K for discussion of the transmission cost recovery factor rider filing.

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Entergy Texas, Inc. and Subsidiaries

Management's Financial Discussion and Analysis

Total electric energy sales for Entergy Texas for the six months ended June 30, 2023 and 2022 are as follows:

	2023	2022	% Change
	(GWh)
Residential	2,914	3,220	(10)
Commercial	2,241	2,290	(2)
Industrial	4,592	4,753	(3)
Governmental	130	131	(1)
Total retail	9,877	10,394	(5)
Sales for resale:
Associated companies	—	279	(100)
Non-associated companies	239	305	(22)
Total	10,116	10,978	(8)

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

Other Income Statement Variances

Second Quarter 2023 Compared to Second Quarter 2022

Other operation and maintenance expenses decreased primarily due to:

•a gain of $6.9 million on the partial sale of a service center in April 2023 as part of an eminent domain proceeding;

•a decrease of $3 million in transmission costs allocated by MISO; and

•several individually insignificant items.

The decrease was partially offset by an increase of $2.3 million in non-nuclear generation expenses primarily due to higher long-term service agreement expenses.

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

Depreciation and amortization expenses increased primarily due to additions to plant in service and an increase in depreciation rates effective with the approval of an interim increase in the annual base rate in June 2023. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the 2022 base rate case filing.

Other income increased primarily due to an increase in the allowance for equity funds used during construction due to higher construction work in progress in 2023, including the Orange County Advanced Power Station project.

Interest expense increased primarily due to the issuance of $325 million of 5.00% Series mortgage bonds in August 2022, partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2023, including the Orange County Advanced Power Station project.

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Entergy Texas, Inc. and Subsidiaries

Management's Financial Discussion and Analysis

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

Other operation and maintenance expenses decreased primarily due to:

•a gain of $6.9 million on the partial sale of a service center in April 2023 as part of an eminent domain proceeding;

•a decrease of $5.2 million in transmission costs allocated by MISO;

•a decrease of $2.8 million in power delivery expenses primarily due to a lower scope of work performed in 2023 as compared to prior year and lower transmission repairs and maintenance costs;

•a decrease of $2.8 million in compensation and benefits costs primarily due to lower health and welfare costs as a result of higher prescription drug rebates in 2023, a decrease in net periodic pension and other postretirement benefits service costs as a result of an increase in the discount rates used to value the benefits liabilities, and a revision to estimated incentive compensation expense in the first quarter 2023. See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Critical Accounting Estimates” in the Form 10-K, Note 6 to the financial statements herein, and Note 11 to the financial statements in the Form 10-K for further discussion of pension and other postretirement benefits costs; and

•a decrease of $2.3 million in non-nuclear generation expenses primarily due to a lower scope of work performed in 2023 as compared to prior year.

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

Interest expense increased primarily due to the issuance of $325 million of 5.00% Series mortgage bonds in August 2022 and the issuance of $290.85 million of senior secured system restoration bonds in April 2022, partially offset by an increase in the allowance for borrowed funds used during construction due to higher construction work in progress in 2023, including the Orange County Advanced Power Station project.

Income Taxes

The effective income tax rates were 19.6% for the second quarter 2023 and 19.4% for the six months ended June 30, 2023. The differences in the effective income tax rates for the second quarter 2023 and the six months ended June 30, 2023 versus the federal statutory rate of 21% were primarily due to book and tax differences related to the allowance for equity funds used during construction and certain book and tax differences related to utility plant items, partially offset by the accrual for state income taxes.

The effective income tax rates were 14.5% for the second quarter 2022 and 12.8% for the six months ended June 30, 2022. The differences in the effective income tax rates for the second quarter 2022 and the six months ended June 30, 2022 versus the federal statutory rate of 21% were primarily due to the amortization of excess accumulated deferred income taxes and certain book and tax differences related to utility plant items. 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 of and regulatory activity regarding the Tax Cuts and Jobs Act.

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Entergy Texas, Inc. and Subsidiaries

Management's Financial Discussion and Analysis

Income Tax Legislation

Liquidity and Capital Resources

Cash Flow

Cash flows for the six months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Thousands)
Cash and cash equivalents at beginning of period	$3,497	$28
Net cash provided by (used in):
Operating activities	308,266	171,727
Investing activities	(319,798)	(326,373)
Financing activities	10,857	177,193
Net increase (decrease) in cash and cash equivalents	(675)	22,547
Cash and cash equivalents at end of period	$2,822	$22,575

Operating Activities

Net cash flow provided by operating activities increased $136.5 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to the timing of recovery of fuel and purchased power costs and higher collections from customers. The increase was partially offset by the timing of payments to vendors, an increase of $29.4 million in income taxes paid in 2023 as a result of higher estimated income tax payments in comparison to 2022, and an increase of $12.2 million in interest paid. See Note 2 to the financial statements herein and in the Form 10-K for a discussion of fuel and purchased power cost recovery.

Investing Activities

Net cash flow used in investing activities decreased $6.6 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•money pool activity;

•cash collateral of $30 million posted in 2022 to support Entergy Texas’s obligations to MISO; and

•the partial sale of a service center in April 2023 for $11 million as part of an eminent domain proceeding.

The decrease was partially offset by an increase of $100.1 million in non-nuclear generation construction expenditures primarily due to higher spending on the Orange County Advanced Power Station project and an increase of $31.7 million in transmission construction expenditures primarily due to increased investment in the reliability and infrastructure of Entergy Texas's transmission system and higher capital expenditures for storm restoration in 2023.

Decreases in Entergy Texas’s receivable from the money pool are a source of cash flow, and Entergy Texas’s receivable from the money pool decreased $98.6 million for the six months ended June 30, 2023 compared

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Entergy Texas, Inc. and Subsidiaries

Management's Financial Discussion and Analysis

to increasing by $1.6 million for the six months ended June 30, 2022. The money pool is an intercompany borrowing arrangement designed to reduce the Utility subsidiaries’ need for external short-term borrowings.

Financing Activities

Net cash flow provided by financing activities decreased $166.3 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to the issuance of $290.85 million of senior secured system restoration bonds in April 2022. The activity was partially offset by money pool activity and an increase of $21.1 million in prepaid deposits related to contributions-in-aid-of-construction for generation interconnection agreements as a result of higher deposits in 2023 as compared to 2022.

Decreases in Entergy Texas’s payable to the money pool are a use of cash flow, and Entergy Texas’s payable to the money pool decreased $79.6 million for the six months ended June 30, 2022.

Capital Structure

Entergy Texas’s debt to capital ratio is shown in the following table. The decrease in the debt to capital ratio is primarily due to net income in 2023.

	June 30, <br>2023		December 31, <br>2022
Debt to capital	50.8	%	52.0	%
Effect of excluding securitization bonds	(2.4	%)	(2.5	%)
Debt to capital, excluding securitization bonds (non-GAAP) (a)	48.4	%	49.5	%
Effect of subtracting cash	(0.1	%)	—	%
Net debt to net capital, excluding securitization bonds (non-GAAP) (a)	48.3	%	49.5	%

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

Net debt consists of debt less cash and cash equivalents. Debt consists of 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. The debt to capital ratio excluding securitization bonds and net debt to net capital ratio excluding securitization bonds are non-GAAP measures. Entergy Texas 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 Texas’s financial condition because the securitization bonds are non-recourse to Entergy Texas, as more fully described in Note 5 to the financial statements in the Form 10-K. Entergy Texas 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 Texas’s financial condition because net debt indicates Entergy Texas’s outstanding debt position that could not be readily satisfied by cash and cash equivalents on hand.

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Entergy Texas, Inc. 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 Texas’s uses and sources of capital. Following are updates to information provided in the Form 10-K.

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

June 30, <br>2023	December 31, <br>2022	June 30,<br>2022	December 31, <br>2021
(In Thousands)
$899	$99,468	$1,643	($79,594)

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

Entergy Texas has a credit facility in the amount of $150 million scheduled to expire in June 2028. The credit facility includes fronting commitments for the issuance of letters of credit against $30 million of the borrowing capacity of the facility. As of June 30, 2023, there were no cash borrowings and $1.1 million in letters of credit outstanding under the credit facility. In addition, Entergy Texas is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to MISO. As of June 30, 2023, $8.8 million in letters of credit were outstanding under Entergy Texas’s uncommitted letter of credit facility. See Note 4 to the financial statements herein for additional discussion of the credit facilities.

State and Local Rate Regulation and Fuel-Cost Recovery

Retail Rates

2022 Base Rate Case

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Entergy Texas, Inc. and Subsidiaries

Management's Financial Discussion and Analysis

effective in June 2023. Additionally, the ALJ remanded the proceeding, except for the issues related to electric vehicle charging infrastructure, to the PUCT to consider the settlement. In June 2023 the ALJ issued a proposal for decision related to the electric vehicle charging infrastructure issues and which noted recent legislation enacted which permits electric utilities to own and operate such infrastructure. The ALJ’s proposal for decision deferred to the PUCT regarding whether it is appropriate for any vertically integrated electric utility, or Entergy Texas specifically, to own electric vehicle charging infrastructure, and in the event that the PUCT decided ownership is permissible, the ALJ recommended approval of the proposed tariff to charge host customers for utility-owned and operated electric vehicle charging infrastructure sited on customer premises and denial of the proposed tariff to temporarily adjust billing demand charges for separately metered electric vehicle charging infrastructure, citing cost-shifting concerns. In July 2023 the parties filed exceptions and replies to exceptions to the proposal for decision. At its August 3, 2023 open meeting, the PUCT voted to issue a final order approving the unopposed settlement and to consider the issues related to electric vehicle charging infrastructure addressed in the ALJ’s proposal for decision in a separate future proceeding.

Generation Cost Recovery Rider

COVID-19 Orders

Fuel and purchased power recovery

As discussed in the Form 10-K, in September 2022, Entergy Texas filed an application with the PUCT to reconcile its fuel and purchased power costs for the period from April 2019 through March 2022. During the reconciliation period, Entergy Texas incurred approximately $1.7 billion in eligible fuel and purchased power expenses, net of certain revenues credited to such expenses and other adjustments. As of the end of the reconciliation period, Entergy Texas’s cumulative under-recovery balance was approximately $103.1 million, including interest, which Entergy Texas requested authority to carry over as the beginning balance for the subsequent reconciliation period beginning April 2022, pending future surcharges or refunds as approved by the PUCT. In November 2022 the PUCT referred the proceeding to the State Office of Administrative Hearings. In March 2023 municipal intervenors filed testimony proposing a $5.2 million disallowance for fuel purchased during Winter Storm Uri. The PUCT staff proposed no disallowance. Entergy Texas filed rebuttal testimony in April 2023. In May 2023, Entergy Texas filed, and the ALJ with the State Office of Administrative Hearings granted, a joint motion to abate the proceeding to give parties additional time to finalize a settlement and cancelling the hearing on the merits previously scheduled for May 2023. In July 2023, Entergy Texas filed an unopposed

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Entergy Texas, Inc. and Subsidiaries

Management's Financial Discussion and Analysis

settlement, supporting testimony, and an agreed motion to admit evidence and remand the proceeding to the PUCT. Pursuant to the unopposed settlement, Entergy Texas would receive no disallowance of fuel costs incurred over the three-year reconciliation period and retain $9.3 million in margins from off-system sales made during the reconciliation period. In July 2023 the ALJ with the State Office of Administrative Hearings granted the motion to admit evidence and remanded the proceeding to the PUCT for consideration of the unopposed settlement. A PUCT decision is expected in September 2023.

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 discussion of nuclear matters.

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.

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 Texas’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 TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
For the Three and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$464,430	$564,591	$971,936	$1,037,073
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	63,526	60,855	231,056	134,775
Purchased power	112,883	195,016	220,641	356,106
Other operation and maintenance	63,071	72,589	127,501	147,566
Taxes other than income taxes	28,717	23,482	56,713	43,931
Depreciation and amortization	66,009	57,248	125,400	113,309
Other regulatory charges (credits) - net	1,526	22,399	12,450	35,845
TOTAL	335,732	431,589	773,761	831,532
OPERATING INCOME	128,698	133,002	198,175	205,541
OTHER INCOME
Allowance for equity funds used during construction	6,760	3,163	11,849	5,759
Interest and investment income	846	347	2,263	535
Miscellaneous - net	(1,941)	(409)	(1,502)	(102)
TOTAL	5,665	3,101	12,610	6,192
INTEREST EXPENSE
Interest expense	26,847	23,101	53,809	44,013
Allowance for borrowed funds used during construction	(2,517)	(1,067)	(4,413)	(1,932)
TOTAL	24,330	22,034	49,396	42,081
INCOME BEFORE INCOME TAXES	110,033	114,069	161,389	169,652
Income taxes	21,576	16,584	31,259	21,764
NET INCOME	88,457	97,485	130,130	147,888
Preferred dividend requirements	518	518	1,036	1,036
EARNINGS APPLICABLE TO COMMON STOCK	$87,939	$96,967	$129,094	$146,852
See Notes to Financial Statements.

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ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	2023	2022
	(In Thousands)
OPERATING ACTIVITIES
Net income	$130,130	$147,888
Adjustments to reconcile net income to net cash flow provided by operating activities:
Depreciation and amortization	125,400	113,309
Deferred income taxes, investment tax credits, and non-current taxes accrued	23,480	24,421
Changes in assets and liabilities:
Receivables	12,534	(55,237)
Fuel inventory	(18,082)	16,888
Accounts payable	(5,725)	79,801
Taxes accrued	(45,549)	(7,158)
Interest accrued	(604)	1,923
Deferred fuel costs	98,042	(141,192)
Other working capital accounts	3,129	2,388
Provisions for estimated losses	455	(10)
Other regulatory assets	(19,688)	(143,294)
Other regulatory liabilities	(9,929)	(14,444)
Effect of securitization on regulatory asset	—	153,383
Pension and other postretirement liabilities	(4,191)	(9,475)
Other assets and liabilities	18,864	2,536
Net cash flow provided by operating activities	308,266	171,727
INVESTING ACTIVITIES
Construction expenditures	(448,550)	(304,702)
Allowance for equity funds used during construction	11,849	5,759
Proceeds from sale of assets	11,000	—
Litigation proceeds from settlement agreement	—	4,134
Changes in money pool receivable - net	98,569	(1,643)
Changes in securitization account	7,248	79
Decrease (increase) in other investments	86	(30,000)
Net cash flow used in investing activities	(319,798)	(326,373)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	—	286,842
Retirement of long-term debt	(8,856)	(29,064)
Change in money pool payable - net	—	(79,594)
Preferred stock dividends paid	(1,036)	(1,024)
Other	20,749	33
Net cash flow provided by financing activities	10,857	177,193
Net increase (decrease) in cash and cash equivalents	(675)	22,547
Cash and cash equivalents at beginning of period	3,497	28
Cash and cash equivalents at end of period	$2,822	$22,575
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$53,019	$40,816
Income taxes	$30,500	$1,085
See Notes to Financial Statements.

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ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$26	$500
Temporary cash investments	2,796	2,997
Total cash and cash equivalents	2,822	3,497
Securitization recovery trust account	3,631	10,879
Accounts receivable:
Customer	81,011	115,955
Allowance for doubtful accounts	(1,708)	(2,352)
Associated companies	7,884	115,549
Other	25,733	21,587
Accrued unbilled revenues	95,924	69,208
Total accounts receivable	208,844	319,947
Deferred fuel costs	160,073	258,115
Fuel inventory - at average cost	44,832	26,750
Materials and supplies - at average cost	94,414	93,031
Prepayments and other	13,764	20,568
TOTAL	528,380	732,787
OTHER PROPERTY AND INVESTMENTS
Investments in affiliates - at equity	237	250
Non-utility property - at cost (less accumulated depreciation)	376	376
Other	19,196	18,975
TOTAL	19,809	19,601
UTILITY PLANT
Electric	7,626,619	7,409,461
Construction work in progress	613,969	339,139
TOTAL UTILITY PLANT	8,240,588	7,748,600
Less - accumulated depreciation and amortization	2,257,215	2,135,400
UTILITY PLANT - NET	5,983,373	5,613,200
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets (includes securitization property of $260,786 as of June 30, 2023 and $269,523 as of December 31, 2022)	598,370	578,682
Other	96,391	99,694
TOTAL	694,761	678,376
TOTAL ASSETS	$7,226,323	$7,043,964
See Notes to Financial Statements.

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ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND EQUITY
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT LIABILITIES
Accounts payable:
Associated companies	$57,241	$70,321
Other	245,062	201,982
Customer deposits	39,666	38,764
Taxes accrued	47,484	93,033
Interest accrued	23,324	23,928
Other	14,068	16,963
TOTAL	426,845	444,991
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	774,147	744,227
Accumulated deferred investment tax credits	8,337	8,711
Regulatory liability for income taxes - net	124,742	132,647
Other regulatory liabilities	43,223	45,247
Asset retirement cost liabilities	11,428	11,121
Accumulated provisions	8,048	7,593
Long-term debt (includes securitization bonds of $266,389 as of June 30, 2023 and $275,064 as of December 31, 2022)	2,888,075	2,895,913
Other	132,923	74,053
TOTAL	3,990,923	3,919,512
Commitments and Contingencies
EQUITY
Common stock, no par value, authorized 200,000,000 shares; issued and outstanding 46,525,000 shares in 2023 and 2022	49,452	49,452
Paid-in capital	1,050,125	1,050,125
Retained earnings	1,670,228	1,541,134
Total common shareholder's equity	2,769,805	2,640,711
Preferred stock without sinking fund	38,750	38,750
TOTAL	2,808,555	2,679,461
TOTAL LIABILITIES AND EQUITY	$7,226,323	$7,043,964
See Notes to Financial Statements.

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ENTERGY TEXAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
		Common Equity
	Preferred Stock	Common<br>Stock	Paid-in<br>Capital	Retained<br>Earnings	Total
	(In Thousands)
Balance at December 31, 2021	$38,750	$49,452	$1,050,125	$1,344,879	$2,483,206
Net income	—	—	—	50,403	50,403
Preferred stock dividends	—	—	—	(518)	(518)
Balance at March 31, 2022	38,750	49,452	1,050,125	1,394,764	2,533,091
Net income	—	—	—	97,485	97,485
Preferred stock dividends	—	—	—	(518)	(518)
Balance at June 30, 2022	$38,750	$49,452	$1,050,125	$1,491,731	$2,630,058
Balance at December 31, 2022	$38,750	$49,452	$1,050,125	$1,541,134	$2,679,461
Net income	—	—	—	41,673	41,673
Preferred stock dividends	—	—	—	(518)	(518)
Balance at March 31, 2023	38,750	49,452	1,050,125	1,582,289	2,720,616
Net income	—	—	—	88,457	88,457
Preferred stock dividends	—	—	—	(518)	(518)
Balance at June 30, 2023	$38,750	$49,452	$1,050,125	$1,670,228	$2,808,555
See Notes to Financial Statements.

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SYSTEM ENERGY RESOURCES, INC.

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

System Energy’s principal asset currently consists of an ownership interest and a leasehold interest in Grand Gulf. The capacity and energy from its 90% interest is sold under the Unit Power Sales Agreement to its only four customers, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans. System Energy’s operating revenues are derived from the allocation of the capacity, energy, and related costs associated with its 90% interest in Grand Gulf pursuant to the Unit Power Sales Agreement. Payments under the Unit Power Sales Agreement are System Energy’s only source of operating revenues. As discussed in “Complaints Against System Energy” below and in Note 2 to the financial statements in the Form 10-K, System Energy and the Unit Power Sales Agreement are currently the subject of several litigation proceedings at the FERC, including challenges with respect to System Energy’s authorized return on equity and capital structure, renewal of its sale-leaseback arrangement, treatment of uncertain tax positions, a broader investigation of rates under the Unit Power Sales Agreement, and a prudence complaint challenging the extended power uprate completed at Grand Gulf in 2012 and the operation and management of Grand Gulf, particularly in the 2016-2020 time period. The claims in these proceedings include claims for refunds and claims for rate adjustments; the aggregate amount of refunds claimed in these proceedings substantially exceeds the net book value of System Energy. In the event of an adverse decision in one or more of these proceedings requiring the payment of substantial additional refunds, System Energy would be required to seek financing to pay such refunds which may not be available on terms acceptable to System Energy, or may not be available at all, when required.

Results of Operations

Net Income

Second Quarter 2023 Compared to Second Quarter 2022

System Energy had net income of $25.8 million in the second quarter 2023 compared to a net loss of $380.1 million in the second quarter 2022 primarily due to a regulatory charge of $551 million ($413 million net-of-tax) recorded in the second quarter 2022 to reflect the effects of the partial settlement agreement and offer of settlement related to pending proceedings before the FERC. The increase was partially offset by the disallowance of the recovery of sale-leaseback lease renewal costs from Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans per the December 2022 FERC order related to the Grand Gulf sale-leaseback renewal complaint and the lower authorized rate of return on equity and capital structure limitations on monthly bills issued to Entergy Mississippi per the June 2022 settlement agreement with the MPSC. See Note 2 to the financial statements in the Form 10-K for discussion of the partial settlement agreement. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Grand Gulf sale-leaseback renewal complaint.

Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022

System Energy had net income of $53.3 million for the six months ended June 30, 2023 compared to a net loss of $348.7 million for the six months ended June 30, 2022 primarily due to a regulatory charge of $551 million ($413 million net-of-tax) recorded in the second quarter 2022 to reflect the effects of the partial settlement agreement and offer of settlement related to pending proceedings before the FERC. The increase was partially offset by the disallowance of the recovery of sale-leaseback lease renewal costs from Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans per the December 2022 FERC order related to the Grand Gulf sale-leaseback renewal complaint and the lower authorized rate of return on equity and capital structure limitations on monthly bills issued to Entergy Mississippi per the June 2022 settlement agreement with the MPSC. See Note 2 to the financial statements in the Form 10-K for discussion of the partial settlement agreement. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Grand Gulf sale-leaseback renewal complaint.

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System Energy Resources, Inc.

Management's Financial Discussion and Analysis

Income Taxes

The effective income tax rates were 22.8% for the second quarter 2023 and 23.2% for the six months ended June 30, 2023. The differences in the effective income tax rates for the second quarter 2023 and the six months ended June 30, 2023 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes, partially offset by certain book and tax differences related to utility plant items.

The effective income tax rates were 25.2% for the second quarter 2022 and 25.3% for the six months ended June 30, 2022. The differences in the effective income tax rates for the second quarter 2022 and the six months ended June 30, 2022 versus the federal statutory rate of 21% were primarily due to the accrual for state income taxes.

Income Tax Legislation

Liquidity and Capital Resources

Cash Flow

Cash flows for the six months ended June 30, 2023 and 2022 were as follows:

	2023	2022
	(In Thousands)
Cash and cash equivalents at beginning of period	$2,940	$89,201
Net cash provided by (used in):
Operating activities	60,571	82,645
Investing activities	11,262	(94,001)
Financing activities	(26,518)	56,880
Net increase in cash and cash equivalents	45,315	45,524
Cash and cash equivalents at end of period	$48,255	$134,725

Operating Activities

Net cash flow provided by operating activities decreased $22.1 million for the six months ended June 30, 2023 compared to the six months ended June 30, 2022 primarily due to:

•aggregate refunds of $103.5 million made in January 2023 related to the sale-leaseback renewal costs and depreciation litigation as calculated in System Energy’s January 2023 compliance report filed with the FERC. See Note 2 to the financial statements herein and in the Form 10-K for further discussion of these refunds and the related proceedings; and

•refunds of $19.3 million included in May 2023 service month bills under the Unit Power Sales Agreement to reflect the effects of the partial settlement agreement approved by the FERC in April 2023. See Note 2 to the financial statements herein and in the Form 10-K for discussion of the Unit Power Sales Agreement complaint.

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System Energy Resources, Inc.

Management's Financial Discussion and Analysis

The decrease was partially offset by a decrease in spending of $33.8 million on nuclear refueling outages in 2023 as compared to the same period in 2022 and the timing of collections of receivables.

Investing Activities

System Energy’s investing activities provided $11.3 million of cash for the six months ended June 30, 2023 compared to using $94 million of cash for the six months ended June 30, 2022 primarily due to the following activity:

•a decrease of $52.1 million as a result of fluctuations in nuclear fuel activity because of variations from year to year in the timing and pricing of fuel reload requirements, material and services deliveries, and the timing of cash payments during the nuclear fuel cycle;

•a decrease of $49.8 million in nuclear construction expenditures primarily due to higher spending in 2022 for Grand Gulf outage projects and upgrades;

•money pool activity; and

•a decrease of $12.2 million in decommissioning trust fund investment activity.

Decreases in System Energy’s receivable from the money pool are a source of cash flow and System Energy’s receivable from the money pool decreased $80.1 million for the six months ended June 30, 2023 compared to decreasing by $60.3 million for the six months ended June 30, 2022. The money pool is an intercompany borrowing arrangement designed to reduce the Utility subsidiaries’ need for external short-term borrowings.

Financing Activities

System Energy’s financing activities used $26.5 million of cash for the six months ended June 30, 2023 compared to providing $56.9 million of cash for the six months ended June 30, 2022 primarily due to the following activity:

•the repayment, at maturity, of $250 million of 4.10% Series mortgage bonds in April 2023;

•the issuance of a $50 million term loan in May 2022, which was repaid, prior to maturity, in March 2023;

•net repayments of $34.8 million in 2023 compared to net long-term borrowings of $57.7 million in 2022 on the nuclear fuel company variable interest entity’s credit facilities;

•the repayment, at maturity, of $50.3 million of 2.5% Series governmental bonds in April 2022; and

•the issuance of $325 million of 6.00% Series mortgage bonds in March 2023.

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.

Capital Structure

System Energy’s debt to capital ratio is shown in the following table. The decrease in the debt to capital ratio is primarily due to net income in 2023 and the net retirement of long-term debt in 2023.

	June 30, <br>2023		December 31, <br>2022
Debt to capital	42.9	%	45.0	%
Effect of subtracting cash	(1.6	%)	(0.1	%)
Net debt to net capital (non-GAAP)	41.3	%	44.9	%

Net debt consists of debt less cash and cash equivalents. Debt consists of short-term borrowings 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. System Energy uses the debt to capital ratio in analyzing its financial

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System Energy Resources, Inc.

Management's Financial Discussion and Analysis

condition and believes it provides useful information to its investors and creditors in evaluating System Energy’s financial condition. The net debt to net capital ratio is a non-GAAP measure. System Energy 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 System Energy’s financial condition because net debt indicates System Energy’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 System Energy’s uses and sources of capital. Following are updates to the information provided in the Form 10-K.

System Energy’s receivables from the money pool were as follows:

June 30, <br>2023	December 31, <br>2022	June 30, <br>2022	December 31, 2021
(In Thousands)
$14,880	$94,981	$15,411	$75,745

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

The System Energy nuclear fuel company variable interest entity has a credit facility in the amount of $120 million scheduled to expire in June 2025. As of June 30, 2023, $37.8 million in loans were outstanding under the System Energy nuclear fuel company variable interest entity credit facility. See Note 4 to the financial statements herein for additional discussion of the variable interest entity credit facility.

Federal Regulation

See the “Rate, Cost-recovery, and Other Regulation - Federal Regulation” section of Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis in the Form 10-K and Note 2 to the financial statements herein and in the Form 10-K for a discussion of federal regulation.

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

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Management's Financial Discussion and Analysis

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 $39 million, which includes interest through June 30, 2023, and the estimated resulting annual rate reduction would be approximately $28 million. As a result of the 2022 settlement agreement with the MPSC, both the estimated refund and rate reduction exclude Entergy Mississippi's portion. See “System Energy Settlement with the MPSC” in the Form 10-K for discussion of the settlement. The estimated refund will continue to accrue interest until a final FERC decision is issued.

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. The APSC, the MPSC, and the City Council subsequently intervened in the proceeding. A hearing was held before a FERC ALJ in November 2019. In April 2020 the ALJ issued the initial decision, and in December 2022 the FERC issued an order on the ALJ’s initial decision, which affirmed it in part and modified it in part. The FERC’s order directed System Energy to calculate refunds on three issues, and to provide a compliance report detailing the calculations. The FERC’s order also disallows the future recovery of sale-leaseback renewal costs, which is estimated at approximately $11.5 million annually for purchases from Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans through July 2036. The three refund issues are rental expenses related to the renewal of the sale-leaseback arrangements; refunds, if any, for the revenue requirement impact of including accumulated deferred income taxes resulting from the decommissioning uncertain tax positions from 2004 through the present; and refunds for the net effect of correcting the depreciation inputs for capital additions attributable to the portion of plant subject to the sale-leaseback.

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System Energy Resources, Inc.

Management's Financial Discussion and Analysis

filed a motion for confirmation of their interpretation of the refund requirement in the December 2022 FERC order and a provisional request for rehearing. In February 2023 the FERC issued a notice that the rehearing requests have been deemed denied by operation of law. The deemed denial of the rehearing request initiates the sixty-day period in which aggrieved parties may petition for federal appellate court review of the underlying FERC orders; however, the FERC may issue a substantive order on rehearing as long as it continues to have jurisdiction over the case. In March 2023, System Energy filed in the United States Court of Appeals for the Fifth Circuit a petition for review of the December 2022 order. In March 2023, System Energy also filed an unopposed motion to stay the proceeding in the Fifth Circuit pending the FERC’s disposition of the pending motions, and the court granted the motion to stay.

LPSC Additional Complaints

Unit Power Sales Agreement Complaint

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System Energy Resources, Inc.

Management's Financial Discussion and Analysis

Grand Gulf Prudence Complaint

System Energy Formula Rate Annual Protocols Formal Challenge Concerning 2021 Calendar Year Bills

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System Energy Resources, Inc.

Management's Financial Discussion and Analysis

implementation of the formula rate during calendar year 2021. 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 used incorrect inputs for retained earnings that are used to determine the capital structure; (3) that the equity ratio charged in rates was excessive; and (4) that all issues in the ongoing Unit Power Sales Agreement complaint proceeding should also be reflected in calendar year 2021 bills. The first, third, and fourth allegations are identical to issues that were raised in the formal challenge to the calendar year 2020 bills. The formal challenge to the calendar year 2021 bills states that the impact of the first allegation is “tens of millions of dollars,” but it does not provide an estimate of the financial impact of the remaining allegations.

Unit Power Sales Agreement

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.

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 System Energy’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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SYSTEM ENERGY RESOURCES, INC.
STATEMENTS OF OPERATIONS
For the Three and Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Three Months Ended		Six Months Ended
	2023	2022	2023	2022
	(In Thousands)		(In Thousands)
OPERATING REVENUES
Electric	$138,384	$163,872	$309,956	$305,248
OPERATING EXPENSES
Operation and Maintenance:
Fuel, fuel-related expenses, and gas purchased for resale	18,783	11,610	37,630	19,533
Nuclear refueling outage expenses	6,692	5,320	13,311	11,247
Other operation and maintenance	46,986	54,685	97,186	98,589
Decommissioning	10,391	10,016	20,678	19,933
Taxes other than income taxes	7,728	7,150	15,010	15,001
Depreciation and amortization	35,303	37,777	72,440	67,700
Other regulatory charges (credits) - net	(32,415)	527,515	(38,874)	518,991
TOTAL	93,468	654,073	217,381	750,994
OPERATING INCOME (LOSS)	44,916	(490,201)	92,575	(445,746)
OTHER INCOME (DEDUCTIONS)
Allowance for equity funds used during construction	1,605	2,581	3,423	4,628
Interest and investment income (loss)	1,638	(8,959)	7,402	(3,727)
Miscellaneous - net	(1,613)	(2,741)	(10,691)	(4,380)
TOTAL	1,630	(9,119)	134	(3,479)
INTEREST EXPENSE
Interest expense	13,635	9,112	24,126	18,593
Allowance for borrowed funds used during construction	(436)	(409)	(791)	(736)
TOTAL	13,199	8,703	23,335	17,857
INCOME (LOSS) BEFORE INCOME TAXES	33,347	(508,023)	69,374	(467,082)
Income taxes	7,588	(127,875)	16,070	(118,366)
NET INCOME (LOSS)	$25,759	($380,148)	$53,304	($348,716)
See Notes to Financial Statements.

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SYSTEM ENERGY RESOURCES, INC.
STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	2023	2022
	(In Thousands)
OPERATING ACTIVITIES
Net income (loss)	$53,304	($348,716)
Adjustments to reconcile net income (loss) to net cash flow provided by operating activities:
Depreciation, amortization, and decommissioning, including nuclear fuel amortization	125,741	104,296
Deferred income taxes, investment tax credits, and non-current taxes accrued	17,865	(124,202)
Changes in assets and liabilities:
Receivables	13,558	(14,753)
Accounts payable	(26,332)	(27,368)
Prepaid taxes and taxes accrued	(10,704)	(2,664)
Interest accrued	3,035	(247)
Other working capital accounts	5,569	(41,234)
Other regulatory assets	(16,683)	(22,768)
Other regulatory liabilities	27,611	338,280
Pension and other postretirement liabilities	(4,758)	(7,494)
Other assets and liabilities	(127,635)	229,515
Net cash flow provided by operating activities	60,571	82,645
INVESTING ACTIVITIES
Construction expenditures	(54,140)	(100,953)
Allowance for equity funds used during construction	3,423	4,628
Nuclear fuel purchases	(31,822)	(77,704)
Proceeds from sale of nuclear fuel	25,091	18,845
Increase in other investments	(4)	—
Proceeds from nuclear decommissioning trust fund sales	151,463	177,584
Investment in nuclear decommissioning trust funds	(162,850)	(176,735)
Changes in money pool receivable - net	80,101	60,334
Net cash flow provided by (used in) investing activities	11,262	(94,001)
FINANCING ACTIVITIES
Proceeds from the issuance of long-term debt	585,898	556,696
Retirement of long-term debt	(612,416)	(499,816)
Net cash flow provided by (used in) financing activities	(26,518)	56,880
Net increase in cash and cash equivalents	45,315	45,524
Cash and cash equivalents at beginning of period	2,940	89,201
Cash and cash equivalents at end of period	$48,255	$134,725
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest - net of amount capitalized	$20,289	$19,454
See Notes to Financial Statements.

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SYSTEM ENERGY RESOURCES, INC.
BALANCE SHEETS
ASSETS
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT ASSETS
Cash and cash equivalents:
Cash	$2,015	$78
Temporary cash investments	46,240	2,862
Total cash and cash equivalents	48,255	2,940
Accounts receivable:
Associated companies	65,892	158,601
Other	5,195	6,145
Total accounts receivable	71,087	164,746
Materials and supplies - at average cost	147,318	135,346
Deferred nuclear refueling outage costs	19,681	33,377
Prepaid taxes	3,107	—
Prepayments and other	12,426	9,097
TOTAL	301,874	345,506
OTHER PROPERTY AND INVESTMENTS
Decommissioning trust funds	1,260,251	1,142,914
TOTAL	1,260,251	1,142,914
UTILITY PLANT
Electric	5,461,317	5,425,449
Construction work in progress	99,337	102,987
Nuclear fuel	146,230	193,004
TOTAL UTILITY PLANT	5,706,884	5,721,440
Less - accumulated depreciation and amortization	3,439,474	3,412,257
UTILITY PLANT - NET	2,267,410	2,309,183
DEFERRED DEBITS AND OTHER ASSETS
Regulatory assets:
Other regulatory assets	431,804	415,121
Other	898	1,422
TOTAL	432,702	416,543
TOTAL ASSETS	$4,262,237	$4,214,146
See Notes to Financial Statements.

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SYSTEM ENERGY RESOURCES, INC.
BALANCE SHEETS
LIABILITIES AND EQUITY
June 30, 2023 and December 31, 2022
(Unaudited)
	2023	2022
	(In Thousands)
CURRENT LIABILITIES
Currently maturing long-term debt	$46	$300,037
Accounts payable:
Associated companies	11,431	21,701
Other	30,897	58,178
Taxes accrued	—	7,597
Interest accrued	14,626	11,591
Sale-leaseback/depreciation regulatory liability	—	103,497
Other	4,065	4,071
TOTAL	61,065	506,672
NON-CURRENT LIABILITIES
Accumulated deferred income taxes and taxes accrued	395,069	376,070
Accumulated deferred investment tax credits	44,004	44,692
Regulatory liability for income taxes - net	109,366	110,840
Other regulatory liabilities	797,606	665,024
Decommissioning	1,063,139	1,042,461
Pension and other postretirement liabilities	35,992	40,750
Long-term debt	752,923	477,868
Other	2	2
TOTAL	3,198,101	2,757,707
Commitments and Contingencies
COMMON EQUITY
Common stock, no par value, authorized 1,000,000 shares; issued and outstanding 789,350 shares in 2023 and 2022	1,086,850	1,086,850
Accumulated deficit	(83,779)	(137,083)
TOTAL	1,003,071	949,767
TOTAL LIABILITIES AND EQUITY	$4,262,237	$4,214,146
See Notes to Financial Statements.

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SYSTEM ENERGY RESOURCES, INC.
STATEMENTS OF CHANGES IN COMMON EQUITY
For the Six Months Ended June 30, 2023 and 2022
(Unaudited)
	Common Equity
	Common<br>Stock	Retained<br>Earnings (Accumulated Deficit)	Total
	(In Thousands)
Balance at December 31, 2021	$951,850	$139,510	$1,091,360
Net income	—	31,432	31,432
Balance at March 31, 2022	951,850	170,942	1,122,792
Net loss	—	(380,148)	(380,148)
Balance at June 30, 2022	$951,850	($209,206)	$742,644
Balance at December 31, 2022	$1,086,850	($137,083)	$949,767
Net income	—	27,545	27,545
Balance at March 31, 2023	1,086,850	(109,538)	977,312
Net income	—	25,759	25,759
Balance at June 30, 2023	$1,086,850	($83,779)	$1,003,071
See Notes to Financial Statements.

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ENTERGY CORPORATION AND SUBSIDIARIES

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

See “PART I, Item 1, Litigation” in the Form 10-K for a discussion of legal, administrative, and other regulatory proceedings affecting Entergy. Also see Notes 1 and 2 to the financial statements herein and “Item 5, Other Information, Environmental Regulation” below for updates regarding environmental proceedings and regulation.

Item 1A. Risk Factors

There have been no material changes to the risk factors discussed in "Part I, Item 1A. RISK FACTORS" in the Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities (a)

Period	Total Number of<br>Shares Purchased	Average Price Paid<br>per Share	Total Number of<br>Shares Purchased<br>as Part of a<br>Publicly<br>Announced Plan	Maximum Dollar<br>Amount<br>of Shares that May<br>Yet be Purchased<br>Under a Plan (b)
4/01/2023-4/30/2023	—	$—	—	$350,052,918
5/01/2023-5/31/2023	—	$—	—	$350,052,918
6/01/2023-6/30/2023	—	$—	—	$350,052,918
Total	—	$—	—

In accordance with Entergy’s stock-based compensation plans, Entergy periodically grants stock options to key employees, which may be exercised to obtain shares of Entergy’s common stock. According to the plans, these shares can be newly issued shares, treasury stock, or shares purchased on the open market. Entergy’s management has been authorized by the Board to repurchase on the open market shares up to an amount sufficient to fund the exercise of grants under the plans. In addition to this authority, the Board has authorized share repurchase programs to enable opportunistic purchases in response to market conditions. In October 2010 the Board granted authority for a $500 million share repurchase program. The amount of share repurchases under these programs may vary as a result of material changes in business results or capital spending or new investment opportunities. In addition, in the first quarter 2023, Entergy withheld 71,722 shares of its common stock at $108.71 per share, 27,533 shares of its common stock at $107.69 per share, 12,265 shares of its common stock at $107.59 per share, 551 shares of its common stock at $103.72 per share, 232 shares of its common stock at $106.07 per share, and 100 shares of its common stock at $105.79 per share to pay income taxes due upon vesting of restricted stock granted and payout of performance units as part of its long-term incentive program.

(a)See Note 12 to the financial statements in the Form 10-K for additional discussion of the stock-based compensation plans.

(b)Maximum dollar amount of shares that may yet be repurchased relates only to the $500 million share repurchase program plan and does not include an estimate of the amount of shares that may be purchased to fund the exercise of grants under the stock-based compensation plans.

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Item 5. Other Information

Rule 10b5-1 Trading Agreements

During the three months ended June 30, 2023, no director or officer of Entergy or any of the Registrant Subsidiaries adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” as each term is defined in Item 408(a) of Regulation S-K.

Regulation of the Nuclear Power Industry

Following is an update to the “Regulation of the Nuclear Power Industry” section of Part I, Item 1 of the Form 10-K.

Nuclear Waste Policy Act of 1982

Nuclear Plant Decommissioning

In March 2023 filings with the NRC were made reporting on decommissioning funding for all of Entergy’s subsidiaries’ nuclear plants. Those reports showed that decommissioning funding for each of the nuclear plants met the NRC’s financial assurance requirements.

NRC Reactor Oversight Process

Environmental Regulation

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

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.

Hazardous Air Pollutants

As discussed in the Form 10-K, 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 April 2023 the EPA issued a regulatory proposal to revise portions of the MATS rule, including a proposed reduction to the emission limit for filterable particulate matter. If finalized, the proposed lower filterable particulate matter emission limitation could require additional capital investment and/or additional other operation and maintenance expenditures at Entergy’s coal-fired generating units. Entergy is closely monitoring this rulemaking, in part through its various trade associations.

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Good Neighbor Plan/Cross-State Air Pollution Rule

In March 2023 the EPA released its final Federal Implementation Plan (FIP), known as the Good Neighbor Plan, to address interstate transport for the 2015 ozone NAAQS which will increase the stringency of the Cross-State Air Pollution Rule (CSAPR) program in all four of the states where the Utility operating companies operate. The FIP will significantly reduce ozone season nitrogen oxides (NOx) emission allowance budgets and allocations for electric generating units. Entergy is currently assessing its compliance options for the FIP. This may include the installation of post-combustion NOx emissions controls on certain coal or large legacy gas units that will operate beyond 2026 and are not currently equipped with such controls. Since the release of the proposed rule in April 2022, the price for Group 3 ozone season NOx emission allowances has fluctuated significantly, peaking at over $45,000 per allowance in late August 2022, and has recently ranged between $8,000 to $10,000 per allowance. Prior to issuance of the FIP, in February 2023 the EPA issued related State Implementation Plan (SIP) disapprovals for many states, including the four states in which the Utility operating companies operate, and these SIP disapprovals are the subject of many legal challenges, including a petition for review filed by Entergy Louisiana challenging the disapproval of Louisiana’s SIP. Stays of the SIP disapprovals have been granted in all four states in which the Utility operating companies operate, and the Good Neighbor Plan will not go into effect while the stays are in place. Decisions on the merits regarding the SIP disapprovals are not expected until 2024. The final FIP also is subject to numerous legal challenges.

Greenhouse Gas Emissions

In May 2023 the EPA proposed several rules regulating greenhouse gas emissions from new and existing (coal and gas-fired) power plants. If finalized, the proposed requirements for existing “large and frequently used” gas turbine generating units could require significant investments in carbon dioxide (CO2) emission reduction technologies at certain of Entergy’s existing gas turbine units with a capacity of greater than 300 MW per combustion turbine and which operate at an annual capacity factor of greater than 50 percent. Comments are due in August 2023. Entergy is closely monitoring this rulemaking, in part through its various trade associations.

Coal Combustion Residuals

As discussed in the Form 10-K, in April 2015 the EPA published the final coal combustion residuals (CCR) rule. In May 2023 the EPA released a proposed rule establishing management standards for legacy CCR surface impoundments (i.e., inactive surface impoundments at inactive power plants) and establishing a new class of units referred to as CCR management units (i.e., non-containerized CCR located at a regulated CCR facility). Entergy does not have any legacy impoundments; however, the proposed definition of CCR management units appears to regulate on-site areas where CCR was beneficially used. This is contrary to the current CCR rule which exempts beneficial uses that meet certain criteria. Comments on the proposed rule were due in July 2023 and Entergy is monitoring the rulemaking, in part through its trade associations.

Item 6. Exhibits

3(a) -	Certificate of Amendment to the Restated Certificate of Incorporation of Entergy Co r poration, dated May 9, 2023 (3.1(i) to Form 8-K filed May 10, 2023 in 1-11299).
*3(b) -	Restated Certificate of Incorporation of Entergy Corporation, dated July 28, 2023.
4(a) -	Forty-first Supplemental Indenture, dated as of May 1, 2023, to Mortgage and Deed of Trust of Entergy Mississippi, dated as of February 1, 1988 (4.73 to Form 8-K filed May 12, 2023 in 1-31508).
4(b) -	First Amendment to Credit Agreement ,dated as of May 31, 2023, by and among Entergy New Orleans,as Borrower , th e Lenders party thereto ,and B ank of America, N.A., as Administrative A gent (4(a) to Form 8-K filed June 1 , 2023 in 1-35747 ).

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*4(c) -	Early Opt-In and Conforming Changes Amendment, dated as of June 27, 2023, by and between Entergy New Orleans, as Borrower, and Bank of America, N.A. as Administrative Agent and LC Issuing Bank.
*4(d) -	First Amendment to Credit Agreement, dated as of June 29, 2023, by and among Entergy Corporation, as Borrower, the Lender parties thereto, and Citibank, N.A., as Administrative Agent.
*4(e) -	Second Extension to Credit Agreement, dated as of June 29, 2023, by and among Entergy Corporation, as Borrower, the Lender parties thereto, each LC Issuing Bank, and Citibank, N.A., as Administrative Agent.
*4(f) -	Second Extension to Credit Agreement, dated as of June 29, 2023, by and among Entergy Arkansas, as Borrower, the Lender parties thereto, each LC Issuing Bank, and Citibank, N.A., as Administrative Agent.
*4(g) -	Second Extension to Credit Agreement, dated as of June 29, 2023, by and among Entergy Louisiana, as Borrower, the Lender parties thereto, each LC Issuing Bank, and Citibank, N.A., as Administrative Agent.
*4(h) -	Extension to Credit Agreement, dated as of June 29, 2023, by and among Entergy Mississippi, as Borrower, the Lender parties thereto, and Citibank, N.A., as Administrative Agent.
*4(i) -	Second Extension to Credit Agreement, dated as of June 29, 2023, by and among Entergy Texas, as Borrower, the Lender parties thereto, each LC Issuing Bank, and Citibank, N.A., as Administrative Agent.
+10(a) -	Amendment No. 1 to 2019 Entergy Corporation Omnibus Incentive Plan, dated May 5, 2023 (99.2 to Form 8-K filed May 10, 2023 in 1-11299).
*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.
**32(f) -	Section 1350 Certification for Entergy Louisiana.
**32(g) -	Section 1350 Certification for Entergy Mississippi.

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**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.
*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.
*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.
+	Management contracts or compensatory plans or arrangements

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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<br>ENTERGY ARKANSAS, LLC<br>ENTERGY LOUISIANA, LLC<br>ENTERGY MISSISSIPPI, LLC<br>ENTERGY NEW ORLEANS, LLC<br>ENTERGY TEXAS, INC.<br>SYSTEM ENERGY RESOURCES, INC.
/s/ Reginald T. Jackson
Reginald T. Jackson<br>Senior Vice President and Chief Accounting Officer<br>(For each Registrant and for each as <br>Principal Accounting Officer)

Date: August 3, 2023

196

Document

Exhibit 3(b)

RESTATED

CERTIFICATE OF INCORPORATION

ENTERGY CORPORATION

Entergy Corporation, a corporation organized and existing under the laws of the State of Delaware, hereby certifies as follows:

1.The name of the corporation is Entergy Corporation and the name under which the corporation was originally incorporated is Entergy-GSU Holdings, Inc.

2.The original certificate of incorporation of this corporation was filed with the Secretary of State of Delaware on August 19, 1992.

3.This Restated Certificate of Incorporation was duly adopted by the Board of Directors in accordance with Section 245 of the General Corporation Law of the State of Delaware. This Restated Certificate of Incorporation restates and integrates and does not further amend the provisions of the corporation’s certificate of incorporation as heretofore amended or supplemented, and there is no discrepancy between those provisions and the provisions included in this Restated Certificate of Incorporation.

4.The text of the certificate of incorporation of the corporation is hereby restated to read in its entirety as follows:

FIRST: The name of the Corporation is Entergy Corporation (hereinafter the “Corporation”).

SECOND: The address of the registered office of the Corporation in the State of Delaware is 1209 Orange Street, in the City of Wilmington, County of New Castle. The name of its registered agent at that address is The Corporation Trust Company.

THIRD: The purpose of the Corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of the State of Delaware as set forth in Title 8 of the Delaware Code.

FOURTH:

A.The total number of shares of stock which the Corporation shall have authority to issue is 500,000,000 shares, of which 1,000,000 shares, no par value per share, shall be designated “Preferred Stock” and 499,000,000 shares, par value $.01 per share, of common stock shall be designated “Common Stock.”

B.The authorized Preferred Stock may be issued, in one or more series, from time to time as the Board of Directors may determine. Each series of Preferred Stock shall bear a distinctive designation, shall be issued in such number of shares and shall have such relative voting, distribution, dividend, liquidation and other rights, preferences and limitations and redemption and/or conversion provisions (including provisions for the redemption or conversion of shares at the option of the stockholder or the Corporation or upon the happening of a specified event) as shall be prescribed, provided that no share of Preferred Stock may be entitled to more than one vote per share. The Board of Directors is expressly authorized to fix such terms, by resolution of the Board of Directors and as set forth in a certificate of designation filed pursuant to the General Corporation Law of the State of Delaware (“DGCL”). Such

certificates of designation, when filed, shall constitute amendments to this Certificate of Incorporation to the extent provided by the DGCL.

C.The holders of shares of Common Stock shall be entitled to one vote for each such share on each matter properly submitted to the stockholders of the Corporation on which the holders of shares of Common Stock are entitled to vote. Except as otherwise required by law or this Certificate of Incorporation, and subject to the rights of the holders of shares of Preferred Stock, if any, at any annual or special meeting of the stockholders of the Corporation, the holders of shares of Common Stock shall have the right to vote for the election of directors and on all other matters properly submitted to a vote of the stockholders; provided, however, that, except as otherwise required by law, holders of shares of Common Stock shall not be entitled to vote on any amendment to this Certificate of Incorporation that relates solely to the terms, number of shares, powers, designations, preferences or relative, participating, optional or other special rights (including, without limitation, voting rights), or to qualifications, limitations or restrictions thereof, of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Certificate of Incorporation or pursuant to the DGCL.

FIFTH: The business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors, which shall not be less than nine (9) nor more than nineteen (19) directors, the exact number of directors to be determined from time to time by resolution adopted by affirmative vote of a majority of the entire Board of Directors. A director shall hold office until the next succeeding annual meeting of stockholders and until his successor shall be elected, subject, however, to prior death, resignation, retirement or removal from office. Vacancies occurring in the Board of Directors and newly created directorships resulting from an increase in the authorized number of directors may be filled by a majority of the directors then in office, even if less than a quorum, or by a sole remaining director. Any director elected to fill a vacancy shall serve until the next succeeding annual meeting of stockholders and until his or her successor shall be elected and qualified.

SIXTH: In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to make, adopt, alter, amend, change or repeal the By-Laws of the Corporation. In addition to the powers and authority hereinbefore or by statute expressly conferred upon them, the directors are hereby empowered to exercise all such powers and do all such acts and things as may be exercised or done by the Corporation, subject, nevertheless, to the provisions of the statutes of Delaware, this Certificate of Incorporation, and any By-Laws adopted by the stockholders; provided, however, that no By-Laws hereafter adopted by the stockholders or otherwise shall invalidate any prior act of the directors which would have been valid if such By-Laws had not been adopted.

SEVENTH: Notwithstanding any other provision of this Certificate of Incorporation or the By-Laws of the Corporation to the contrary, except as otherwise expressly provided by the terms of any series of Preferred Stock, no action required to be taken or which may be taken at any annual or special meeting of stockholders of the Corporation may be taken by written consent without such a meeting except any action taken upon the signing of a consent in writing by the holders of not less than the greater of (a) a majority of the outstanding stock of the Corporation entitled to vote thereon and (b) that number of shares of stock of the Corporation that would be required to take such action at a special or annual meeting of stockholders where holders of all outstanding stock of the Corporation were present, setting forth the action to be taken. Except as otherwise expressly provided by the terms of any series of Preferred Stock permitting the holders of such series of Preferred Stock to call a special meeting of the holders of such series, special meetings of stockholders of the Corporation may be called only by the Board of Directors, the Chairman of the Board, the person, if any, designated by the Board of Directors as

the Chief Executive Officer of the Corporation, a majority of the members of the entire Executive Committee of the Board of Directors, if there shall be one, or by the holders of not less than a majority of the outstanding stock of the Corporation entitled to vote at the special meeting.

EIGHTH:

A.To the fullest extent permitted by the General Corporation Law of the State of Delaware, as the same exists or may hereafter be amended, a director or officer of the Corporation shall not be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer.

Any repeal or modification of this Section A of Article EIGHTH shall not have any effect on the liability or alleged liability of any director or officer of this Corporation for any act or omission of such director or officer occurring prior to such repeal or modification, or otherwise adversely affect any right or protection of a director or officer of the Corporation existing at the time of such repeal or modification. For purposes of this Section A of Article EIGHTH, “officer” shall have the meaning provided in Section 102(b)(7) of the General Corporation Law of the State of Delaware, as it presently exists or may hereafter be amended from time to time.

B. The Corporation shall indemnify its directors and officers to the fullest extent authorized or permitted by the General Corporation Law of the State of Delaware, as the same exists or may hereafter be amended, and such right to indemnification shall continue as to a person who has ceased to be a director or officer of the Corporation and shall inure to the benefit of his or her heirs, executors and administrators: provided, however, that, except for proceedings to enforce rights to indemnification, the Corporation shall not be obligated to indemnify any director or officer (or his or her heirs, executors or administrators) in connection with a proceeding (or part thereof) initiated by such person unless such proceeding (or part thereof) was authorized by the Board of Directors of the Corporation. The right to indemnification conferred in this Section B of Article EIGHTH shall include the right to be paid by the Corporation the expenses incurred in defending or otherwise participating in any proceeding in advance of its final disposition.

The Corporation may, to the extent authorized from time to time by the Board of Directors, provide rights to indemnification and to the advancement of expenses to employees and agents of the Corporation who are not directors or officers similar to those conferred in this Section B of Article EIGHTH to directors and officers of the Corporation.

The rights to indemnification and to the advancement of expenses conferred in this Section B of Article EIGHTH shall not be exclusive of any other right which any person may have or hereafter acquire under this Certificate of Incorporation, the By-Laws, any statute, agreement, vote of stockholders or disinterested directors, or otherwise.

Any repeal or modification of this Section B of Article EIGHTH by the stockholders of the Corporation shall not adversely affect any rights to indemnification and advancement of expenses of a director or officer of the Corporation existing pursuant to this Section B of Article EIGHTH with respect to any acts or omissions occurring prior to such repeal or modification.

C. The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the General Corporation Law of the State of Delaware. The Corporation may also obtain a letter of credit, act as self-insurer, create a reserve, trust, escrow, cash collateral or other fund or account, enter into indemnification agreements, pledge or grant a security interest in any assets or properties of the Corporation, or use any other mechanism or arrangement whatsoever in such amounts, at such costs, and upon such other terms and conditions as the Board of Directors shall deem appropriate for the protection of any or all such persons.

NINTH: Each of the directors of the Corporation may be removed from office at any time, with or without cause, by the affirmative vote of the holders of not less than a majority of the outstanding stock of the Corporation then entitled to vote for the election of such director.

TENTH: Meetings of stockholders may be held within or without the State of Delaware, as the By-Laws may provide. The books of the Corporation may be kept (subject to any provision contained in the General Corporation Law of the State of Delaware) outside the State of Delaware at such place or places as may be designated from time to time by the Board of Directors or in the By-Laws of the Corporation.

ELEVENTH: The Corporation reserves the right to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation.

IN WITNESS WHEREOF, said Board of Directors has caused this Certificate to be signed by Marcus V. Brown, its Executive Vice President and General Counsel this 28th day of July 2023.

ENTERGY CORPORATION

By: /s/ Marcus V. Brown

Name: Marcus V. Brown

Title: Executive Vice President and

General Counsel

Attest:

By: /s/ Daniel T. Falstad

Name: Daniel T. Falstad

Title: Secretary

Document

Execution Version

Exhibit 4(c)

EARLY OPT-IN AND CONFORMING CHANGES AMENDMENT

THIS EARLY OPT-IN AND CONFORMING CHANGES AMENDMENT, dated as of June 27, 2023 (this “Agreement” and such date, the “Amendment Effective Date”), is entered into by and between ENTERGY NEW ORLEANS, LLC, a Texas limited liability company (the “Borrower”), and BANK OF AMERICA, N.A., as administrative agent (the “Administrative Agent”), as lender and as letter of credit issuing bank.

RECITALS

WHEREAS, the Borrower and Bank of America, N.A., as Administrative Agent, sole lender and sole letter of credit issuing bank, have entered into that certain Third Amended and Restated Credit Agreement dated as of June 22, 2021 (as amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”);

WHEREAS, certain advances, loans and/or other extensions of credit (the “Loans”) under the Credit Agreement denominated in Dollars incur or are permitted to incur interest, fees, commissions or other amounts based on the London Interbank Offered Rate for deposits denominated in Dollars as administered by the ICE Benchmark Administration (“LIBOR”) in accordance with the terms of the Credit Agreement; and

WHEREAS, the applicable parties under the Credit Agreement have determined in accordance with the Credit Agreement that LIBOR should be replaced with a successor benchmark rate in accordance with Section 2.20 of the Credit Agreement, and in connection therewith, the Administrative Agent has determined that certain conforming changes are necessary or advisable.

NOW, THEREFORE, in accordance with the terms of the Credit Agreement, this Agreement is entered into by the Borrower and Bank of America, N.A., as Administrative Agent, sole lender and sole letter of credit issuing bank:

1. Defined Terms. Capitalized terms used herein but not otherwise defined herein (including on any Appendix attached hereto) shall have the meanings provided to such terms in the Credit Agreement, as amended by this Agreement.

2. Agreement.

(a) This Agreement constitutes the joint election by the Administrative Agent and the Borrower to replace LIBOR with the Benchmark Replacement in paragraph (1)(a) of the definition of “Benchmark Replacement” in the Credit Agreement and the provision by the Administrative Agent of written notice of such election to the Lenders. Notwithstanding any provision of the Credit Agreement or any other Loan Document to the contrary, the terms set forth on Appendix A shall apply to Loans denominated in Dollars that bear interest at the Eurocurrency Rate (as defined in Appendix A). For the avoidance of doubt, to the extent provisions in the Credit Agreement apply to Loans denominated in Dollars and such provisions are not specifically addressed by Appendix A, the provisions in the Credit Agreement shall continue to apply to such Loans denominated in Dollars; and

(b) The Lender party to this Agreement, being the sole Lender under the Credit Agreement and therefore comprising the Majority Lenders, hereby waives any right to object to the Early Opt-in Election pursuant to the definition of “Early Opt-in Effective Date” (as defined in the Credit Agreement) and consents to effectiveness of the

Early Opt-in Election immediately upon the Amendment Effective Date, except as otherwise provided in the second paragraph of Section 2(a) of Appendix A, without any requirement for any additional consent, action or waiting period.

3. Conflict with Loan Documents. In the event of any conflict between the terms of this Agreement and the terms of the Credit Agreement or any other Loan Document, the terms hereof shall control.

4. Condition Precedent. This Agreement shall become effective upon the receipt by the Administrative Agent of counterparts of this Agreement executed by the Borrower, the Majority Lenders and each LC Issuing Bank (and for the avoidance of doubt, Bank of America, N.A. is the sole Lender and sole LC Issuing Bank under the Credit Agreement).

5. Payment of Expenses. The Borrower agrees to reimburse the Administrative Agent for all reasonable fees, charges and disbursements of the Administrative Agent in connection with the preparation, execution and delivery of this Agreement, including all reasonable fees, charges and disbursements of counsel to the Administrative Agent (paid directly to such counsel if requested by the Administrative Agent).

6. Miscellaneous.

(a) The Loan Documents, and the obligations of the Borrower under the Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms. This Agreement is a Loan Document.

(b) The Borrower (i) acknowledges and consents to all of the terms and conditions of this Agreement, (ii) affirms all of its obligations under the Loan Documents and (iii) agrees that this Agreement and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Loan Documents.

(i) The execution, delivery and performance by the Borrower of this Agreement is within the Borrower’s organizational powers and has been duly authorized by all necessary organizational, partnership, member or other action, as applicable, as may be necessary or required.

(ii) This Agreement has been duly executed and delivered by the Borrower and constitutes a valid and binding obligation of the Borrower, enforceable against it in accordance with the terms hereof, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

(iii) The execution and delivery by the Borrower of this Agreement and performance by the Borrower of this Agreement have been duly authorized by all necessary corporate or other organizational action, and do not and will not (i) contravene the terms of its certificate or articles of incorporation or organization or other applicable constitutive documents, (ii) conflict with or result in any breach or contravention of, or the creation of any lien under, or require any payment to be made under (x) any contractual obligation to which such Person is a party or affecting such Person or the properties of such Person or any subsidiary thereof or (y) any order, injunction, writ or decree of any governmental authority

or any arbitral award to which the Borrower or any Subsidiary thereof or its property is subject or (c) violate any law.

(iv) Before and after giving effect to this Agreement, (A) all representations and warranties of the Borrower set forth in the Loan Documents (excluding those contained in the last sentence of subsection (e) and in subsections (f) and (n), in each case in Section 4.01 of the Credit Agreement) are true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality (after giving effect to such materiality qualification)) on and as of the Amendment Effective Date (except to the extent that such representations and warranties specifically refer to an earlier date, in which case they were true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality (after giving effect to such materiality qualification)) as of such earlier date), and (B) no Event of Default exists.

(d) This Agreement may be in the form of an electronic record (in “.pdf” form or otherwise) and may be executed using electronic signatures, which shall be considered as originals and shall have the same legal effect, validity and enforceability as a paper record. This Agreement may be executed in as many counterparts as necessary or convenient, including both paper and electronic counterparts, but all such counterparts shall be one and the same Agreement. For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Administrative Agent of a manually signed Agreement which has been converted into electronic form (such as scanned into “.pdf” format), or an electronically signed Agreement converted into another format, for transmission, delivery and/or retention.

(e) Any provision of this Agreement held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

(f) The terms of the Credit Agreement with respect to governing law, submission to jurisdiction, waiver of venue and waiver of jury trial are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms.

[remainder of page intentionally left blank]

The parties hereto have caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

BORROWER:	ENTERGY NEW ORLEANS, LLC
	By: /s/ Kevin J. Marino
	Name: Kevin J. Marino
	Title: Assistant Treasurer

[SIGNATURE PAGE TO EARLY OPT-IN AND CONFORMING CHANGES AMENDMENT]

ADMINISTRATIVE AGENT, LENDER<br><br>AND LC ISSUING BANK:	BANK OF AMERICA, N.A.,
	as Administrative Agent, Lender and LC Issuing Bank
	By: /s/ Jacqueline G. Margetis
	Name: Jacqueline G. Margetis<br><br>Title: Director

[SIGNATURE PAGE TO EARLY OPT-IN AND CONFORMING CHANGES AMENDMENT]

Appendix A

TERMS APPLICABLE TO TERM SOFR LOANS

1. Defined Terms. The following terms shall have the meanings set forth below:

“Administrative Agent’s Office” means, with respect to Dollars, the Administrative Agent’s address and, as appropriate, account specified in the Credit Agreement with respect to Dollars, or such other address or account with respect to Dollars as the Administrative Agent may from time to time notify the Borrower and the Lenders.

“Applicable Rate” means the Applicable Margin (as defined in the Credit Agreement).

“Base Rate” means the Base Rate (as defined in the Credit Agreement).

“Base Rate Loan” means a Loan (as defined in the Agreement) that bears interest at a rate based on the Base Rate.

“Borrowing” means a Borrowing (as defined in the Credit Agreement).

“Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, the state where the Administrative Agent’s Office is located.

“CME” means CME Group Benchmark Administration Limited.

“Committed Loan Notice” means a Notice of Borrowing or Notice of Conversion (each, as defined in the Credit Agreement), as applicable, and such term shall be deemed to include the Committed Loan Notice attached hereto as Exhibit A.

“Conforming Changes” means, with respect to the use, administration of or any conventions associated with SOFR or any proposed Successor Rate or Term SOFR, as applicable, any conforming changes to the definitions of “Base Rate”, “SOFR”, “Term SOFR” and “Interest Period”, timing and frequency of determining rates and making payments of interest and other technical, administrative or operational matters (including, for the avoidance of doubt, the definitions of “Business Day” and “U.S. Government Securities Business Day”, timing of borrowing requests or prepayment, conversion or continuation notices and length of lookback periods) as may be appropriate, in the discretion of the Administrative Agent (in consultation with the Borrower), to reflect the adoption and implementation of such applicable rate(s) and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent determines that adoption of any portion of such market practice is not administratively feasible or that no market practice for the administration of such rate exists, in such other manner of administration as the Administrative Agent determines is reasonably necessary (in consultation with the Borrower) in connection with the administration of this Agreement and any other Loan Document).

“Daily Simple SOFR” with respect to any applicable determination date means the SOFR published on such date on the Federal Reserve Bank of New York’s website (or any successor source).

“Dollar” and “$” mean lawful money of the United States.

“Eurocurrency Rate” means Eurodollar Rate or LIBOR (each, as defined in the Credit Agreement), as applicable.

Appendix A-1

“Eurocurrency Rate Loan” means a Loan (as defined in the Agreement) that bears interest at a rate based on the Eurocurrency Rate.

“Interest Payment Date” means, as to any Term SOFR Loan, the last day of each Interest Period applicable to such Loan and the applicable maturity date set forth in the Credit Agreement; provided, however, that if any Interest Period for a Term SOFR Loan exceeds three months, the respective dates that fall every three months after the beginning of such Interest Period shall also be Interest Payment Dates.

“Interest Period” means, as to each Term SOFR Loan, the period commencing on the date such Term SOFR Loan is disbursed or converted to or continued as a Term SOFR Loan and ending on the date one, three or six months thereafter, as selected by the Borrower in its Committed Loan Notice, or such other period that is twelve months or less requested by the Borrower and consented to by all the applicable Lenders and the Administrative Agent (in the case of each requested Interest Period, subject to availability); provided that:

(a) any Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless, in the case of a Term SOFR Loan, such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

(b) any Interest Period pertaining to a Term SOFR Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

“Notice of Loan Prepayment” means a notice of prepayment as contemplated by Section 2.11 of the Credit Agreement.

“Required Lenders” means the Majority Lenders (as defined in the Credit Agreement), subject to Section 2(h)(i) of this Appendix A.

“Scheduled Unavailability Date” has the meaning set forth in Section 2(h)(iii)(y) of this Appendix A.

“SOFR” means the Secured Overnight Financing Rate as administered by the Federal Reserve Bank of New York (or a successor administrator).

“SOFR Adjustment” means a percentage equal to 0.10% (10 basis points) for all Interest Periods or payment periods.

“Successor Rate” has the meaning set forth in Section 2(h) of this Appendix A.

“Term SOFR” means:

(a) for any Interest Period with respect to a Term SOFR Loan, the rate per annum equal to the Term SOFR Screen Rate two U.S. Government Securities Business Days prior to the commencement of such Interest Period with a term equivalent to such Interest Period; provided that if the rate is not published prior to 11:00 a.m. on such determination date then Term SOFR means the Term SOFR Screen Rate on the first U.S. Government Securities Business Day immediately prior thereto, in each case, plus the SOFR Adjustment for such Interest Period; and

(b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to the Term SOFR Screen Rate two U.S. Government Securities Business Days prior to such date with a term of one month commencing that day; provided that if the rate is not published prior to 11:00 a.m. on such determination date

Appendix A-2

then Term SOFR means the Term SOFR Screen Rate on the first U.S. Government Securities Business Day immediately prior thereto, in each case, plus the SOFR Adjustment for such term;

provided that if Term SOFR determined in accordance with either of the foregoing provisions (a) or (b) of this definition would otherwise be less than zero (0%), Term SOFR shall be deemed zero (0%) for purposes of this Agreement and the other Loan Documents.

“Term SOFR Loan” means a Loan that bears interest at a rate based on clause (a) of the definition of Term SOFR.

“Term SOFR Screen Rate” means the forward-looking SOFR term rate administered by CME (or any successor administrator satisfactory to the Administrative Agent) and published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time).

“Type” means, with respect to a Loan, its character as a Base Rate Loan or a Term SOFR Loan.

“U.S. Government Securities Business Day” means any Business Day, except any Business Day on which any of the Securities Industry and Financial Markets Association, the New York Stock Exchange or the Federal Reserve Bank of New York is not open for business because such day is a legal holiday under the federal laws of the United States or the laws of the State of New York, as applicable.

2. Terms Applicable to Term SOFR Loans. From and after the Amendment Effective Date, the parties hereto agree as follows with respect to Term SOFR Loans:

(a) LIBOR. (i) Dollars shall not be considered a currency for which there is a published LIBOR rate and (ii) any request for a new Eurocurrency Rate Loan denominated in Dollars, or to continue an existing Eurocurrency Rate Loan denominated in Dollars, shall be deemed to be a request for a new Loan or continued Loan, respectively, bearing interest at Term SOFR.

To the extent any Loan bearing interest at the Eurocurrency Rate is outstanding on the Amendment Effective Date, such Loan shall continue to bear interest at the Eurocurrency Rate until the end of the current Interest Period or payment period applicable to such Loan.

(b) References to Eurocurrency Rate and Eurocurrency Rate Loans in the Credit Agreement and Loan Documents.

(i) References to the Eurocurrency Rate and Eurocurrency Rate Loans in provisions of the Credit Agreement and the other Loan Documents that are not specifically addressed herein (other than the definitions of Eurocurrency Rate and Eurocurrency Rate Loan) shall be deemed to include Term SOFR and Term SOFR Loans, as applicable. In addition, to the extent the definition of Base Rate in the Credit Agreement refers to the Eurocurrency Rate, such reference shall be deemed to refer to Term SOFR.

(ii) For purposes of any requirement for the Borrower to compensate Lenders for losses in the Credit Agreement resulting from any continuation, conversion, payment or prepayment of any Loan on a day other than the last day of any Interest Period (as defined in the Credit Agreement), references to the Interest Period (as defined in the Credit Agreement) shall be deemed to include any relevant interest payment date or payment period for a Term SOFR Loan.

Appendix A-3

(c) Interest Rates. The Administrative Agent does not warrant, nor accept responsibility, nor shall the Administrative Agent have any liability with respect to the administration of, submission of or any other matter related to any reference rate referred to herein or with respect to any rate (including, for the avoidance of doubt, the selection of such rate and any related spread or other adjustment) that is an alternative or replacement for or successor to any such rate (including, without limitation, any Successor Rate) (or any component of any of the foregoing) or the effect of any of the foregoing, or of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions or other activities that affect any reference rate referred to herein, or any alternative, successor or replacement rate (including, without limitation, any Successor Rate) (or any component of any of the foregoing) or any related spread or other adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any reference rate referred to herein or any alternative, successor or replacement rate (including, without limitation, any Successor Rate) (or any component of any of the foregoing), in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or other action or omission related to or affecting the selection, determination, or calculation of any rate (or component thereof) provided by any such information source or service.

(d) Borrowings, Conversions, Continuations and Prepayments of Term SOFR Loans. In addition to any other borrowing or prepayment requirements set forth in the Credit Agreement or any other Loan Document:

(i) Term SOFR Loans. Each Borrowing, each conversion of Loans from one Type to the other, and each continuation of Term SOFR Loans shall be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by (A) telephone or (B) a Committed Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Administrative Agent of a Committed Loan Notice. Each such Committed Loan Notice must be received by the Administrative Agent not later than 11:00 a.m. (Eastern time) two Business Days prior to the requested date of any Borrowing of, conversion to or continuation of Term SOFR Loans or of any conversion of Term SOFR Loans to Base Rate Loans; provided, however, that if the Borrower wishes to request Term SOFR Loans having an Interest Period other than one, three or six months in duration as provided in the definition of “Interest Period,” the applicable notice must be received by the Administrative Agent not later than 11:00 a.m. four Business Days prior to the requested date of such Borrowing, conversion or continuation, whereupon the Administrative Agent shall give prompt notice to the applicable Lenders of such request and determine whether the requested Interest Period is acceptable to all of them. Not later than 11:00 a.m., three Business Days before the requested date of such Borrowing, conversion or continuation, the Administrative Agent shall notify the Borrower (which notice may be by telephone) whether or not the requested Interest Period has been consented to by all the Lenders and the Administrative Agent. Each Borrowing of, conversion to or continuation of Term SOFR Loans shall be in a principal amount of $1,000,000 or a whole multiple of $100,000 in excess thereof. Each Committed Loan Notice shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans from one Type to the other, or a continuation of Term SOFR Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or continued, (iv) the Type

Appendix A-4

of Loans to be borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto. If the Borrower fails to specify a Type of Loan in a Committed Loan Notice or if the Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Loans shall be made as, or converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Term SOFR Loans. If the Borrower requests a Borrowing of, conversion to, or continuation of Term SOFR Loans in any such Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month.

(ii) Conforming Changes. With respect to SOFR or Term SOFR, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document (each determination by the Administrative Agent of a Conforming Change hereunder shall be conclusive and binding for all purposes, absent manifest error); provided that, with respect to any such amendment effected, the Administrative Agent shall post each such amendment implementing such Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

(iii) Committed Loan Notice. For purposes of a Borrowing of Term SOFR Loans, or a continuation of a Term SOFR Loan, the Borrower shall use the Committed Loan Notice attached hereto as Exhibit A.

(iv) Voluntary Prepayments of Term SOFR Loans. The Borrower may, upon notice to the Administrative Agent pursuant to delivery to the Administrative Agent of a Notice of Loan Prepayment, at any time or from time to time voluntarily prepay the Term SOFR Loans in whole or in part without premium or penalty (except as otherwise specified in the Credit Agreement); provided that such notice must be received by the Administrative Agent not later than 11:00 a.m. (Eastern time) two Business Days prior to any date of prepayment of Term SOFR Loans.

(e) Interest.

(i) Subject to the provisions of the Credit Agreement with respect to default interest, each Term SOFR Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the sum of Term SOFR for such Interest Period plus the Applicable Rate.

(ii) Interest on each Term SOFR Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified in the Credit Agreement; provided, that any prepayment of any Term SOFR Loan shall be accompanied by all accrued interest on the amount prepaid, together with any additional amounts required pursuant to Section 8.04(b). Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any debtor relief law.

(f) Computations. All computations of interest for Base Rate Loans (including Base Rate Loans determined by reference to Term SOFR) shall be made on

Appendix A-5

the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest with respect to Term SOFR Loans shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to the provisions in the Credit Agreement addressing payments generally, bear interest for one day. Each determination by the Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest error.

(g) Successor Rates. The provisions in the Credit Agreement addressing the replacement of a current Successor Rate for Dollars shall be deemed to apply to Term SOFR Loans and Term SOFR, as applicable, and the related defined terms shall be deemed to include Dollars and Term SOFR, as applicable.

(h) Inability to Determine Rates; Successor Rates.

(i) Defined Terms. For purposes of this Section 2(h), those Lenders that have not made and do not have an obligation under the Credit Agreement to make, the relevant Loans in Dollars shall be excluded from any determination of Required Lenders.

(ii) Inability to Determine Rate. If in connection with any request for a Term SOFR Loan or a conversion of Base Rate Loans to Term SOFR Loans or a continuation of any of such Loans, as applicable, (x) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that (A) no Successor Rate has been determined in accordance with Section 2(h)(iii), and the circumstances under clause (x) of Section 2(h)(iii) or the Scheduled Unavailability Date has occurred, or (B) adequate and reasonable means do not otherwise exist for determining Term SOFR for any requested Interest Period with respect to a proposed Term SOFR Loan or in connection with an existing or proposed Base Rate Loan, or (y) the Administrative Agent or the Required Lenders determine that for any reason that Term SOFR for any requested Interest Period with respect to a proposed Term SOFR Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.

Thereafter, (x) the obligation of the Lenders to make or maintain Term SOFR Loans, or to convert Base Rate Loans to Term SOFR Loans, shall be suspended (to the extent of the affected Term SOFR Loans or Interest Periods), and (y) in the event of a determination described in the preceding sentence with respect to the Term SOFR component of the Base Rate, the utilization of the Term SOFR component in determining the Base Rate shall be suspended, in each case until the Administrative Agent (or, in the case of a determination by the Required Lenders described in clause (y) of this Section 2(h)(ii), until the Administrative Agent upon instruction of the Required Lenders) revokes such notice.

Upon receipt of such notice, (x) the Borrower may revoke any pending request for a Borrowing of, or conversion to, or continuation of Term SOFR Loans (to the extent of the affected Term SOFR Loans or Interest Periods) or, failing that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein and (y) any outstanding Term SOFR Loans shall be deemed to have been converted to Base Rate Loans at the end of their respective applicable Interest Period.

Appendix A-6

(iii) Replacement of Term SOFR or Successor Rate. Notwithstanding anything to the contrary in this Agreement or any other Loan Documents, if the Administrative Agent determines (which determination shall be conclusive absent manifest error), or the Borrower or Required Lenders notify the Administrative Agent (with, in the case of the Required Lenders, a copy to the Borrower) that the Borrower or Required Lenders (as applicable) have determined, that:

(x) adequate and reasonable means do not exist for ascertaining one month, three month and six month interest periods of Term SOFR, including, without limitation, because the Term SOFR Screen Rate is not available or published on a current basis and such circumstances are unlikely to be temporary; or

(y) CME or any successor administrator of the Term SOFR Screen Rate or a Governmental Authority having jurisdiction over the Administrative Agent or such administrator with respect to its publication of Term SOFR, in each case acting in such capacity, has made a public statement identifying a specific date after which one month, three month and six month interest periods of Term SOFR or the Term SOFR Screen Rate shall or will no longer be representative or made available, or permitted to be used for determining the interest rate of U.S. dollar denominated syndicated loans, or shall or will otherwise cease, provided, that, at the time of such statement, there is no successor administrator that is satisfactory to the Administrative Agent, that will continue to provide such representative interest periods of Term SOFR after such specific date (the latest date on which one month, three month and six month interest periods of Term SOFR or the Term SOFR Screen Rate are no longer representative or available permanently or indefinitely, the “Scheduled Unavailability Date”);

then, on a date and time determined by the Administrative Agent (any such date, the “Term SOFR Replacement Date”), which date shall be at the end of an Interest Period or on the relevant interest payment date, as applicable, for interest calculated and, solely with respect to clause (y) above, no later than the Scheduled Unavailability Date, Term SOFR will be replaced hereunder and under any Loan Document with Daily Simple SOFR plus the SOFR Adjustment for any payment period for interest calculated that can be determined by the Administrative Agent, in each case, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document (the “Successor Rate”).

If the Successor Rate is Daily Simple SOFR plus the SOFR Adjustment, all interest payments will be payable on a monthly basis.

Notwithstanding anything to the contrary herein, (A) if the Administrative Agent determines that Daily Simple SOFR is not available on or prior to the Term SOFR Replacement Date, or (B) if the events or circumstances of the type described in Section 2(h)(iii)(x) or Section 2(h)(iii)(y) have occurred with respect to the Successor Rate then in effect, then in each case, the Administrative Agent and the Borrower may amend this Agreement and the other Loan Documents solely for the purpose of replacing Term SOFR or any then current Successor Rate in accordance with this Section 2(h)(iii) at the end of any Interest Period, relevant interest payment date or payment period for interest calculated, as applicable, with an alternative benchmark rate giving due consideration to any evolving or then existing convention for similar U.S. dollar denominated credit facilities syndicated and agented in the United States for such alternative benchmark. and, in each case, including any mathematical or other adjustments to such benchmark giving due consideration to any evolving or then existing convention for similar U.S. dollar

Appendix A-7

denominated credit facilities syndicated and agented in the United States for such benchmark. For the avoidance of doubt, any such proposed rate and adjustments shall constitute a “Successor Rate”. Any such amendment shall become effective at 5:00 p.m. on the fifth Business Day after the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower unless, prior to such time, Lenders comprising the Required Lenders have delivered to the Administrative Agent written notice that such Required Lenders object to such amendment.

The Administrative Agent will promptly (in one or more notices) notify the Borrower and each Lender of the implementation of any Successor Rate.

Any Successor Rate shall be applied in a manner consistent with market practice; provided that to the extent such market practice is not administratively feasible for the Administrative Agent, such Successor Rate shall be applied in a manner as otherwise reasonably determined by the Administrative Agent.

Notwithstanding anything else herein, if at any time any Successor Rate as so determined would otherwise be less than zero (0%), the Successor Rate will be deemed to be zero (0%) for the purposes of this Agreement and the other Loan Documents.

In connection with the implementation of a Successor Rate, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement; provided that, with respect to any such amendment effected, the Administrative Agent shall post each such amendment implementing such Conforming Changes to the Borrower and the Lenders reasonably promptly after such amendment becomes effective.

For purposes of this Section 2(h)(iii), those Lenders that have not made and do not have an obligation under the Credit Agreement to make, the relevant Loans in Dollars shall be excluded from any determination of Required Lenders.

Appendix A-8

Exhibit A

FORM OF COMMITTED LOAN NOTICE

(Term SOFR Loans)

Date: _______, ________1

To: Bank of America, N.A., as Administrative Agent

Ladies and Gentlemen:

Reference is made to that certain Third Amended and Restated Credit Agreement dated as of June 22, 2021 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Credit Agreement”; the terms defined therein being used herein as therein defined), among Entergy New Orleans, LLC, a Texas limited liability company (the “Borrower”), the Lenders and LC Issuing Banks from time to time party thereto, and Bank of America, N.A., as Administrative Agent.

The undersigned hereby requests2:

Revolving Facility

Indicate: Borrowing, Conversion or Continuation	Indicate: Borrower Name	Indicate: Requested Amount	Indicate: Currency	Indicate: Term SOFR Loans	For Term SOFR Rate Loans Indicate: <br><br>Interest Period (e.g., 1, 3 or 6 month interest period)

The Borrowing, if any, requested herein complies with the requirements set forth in the Credit Agreement.

1 Note to Borrower. All requests submitted under a single Committed Loan Notice must be effective on the same date. If multiple effective dates are needed, multiple Committed Loan Notices will need to be prepared and signed.

2 Note to Borrower. For multiple borrowings, conversions and/or continuations for a particular facility, fill out a new row for each borrowing/conversion and/or continuation.

Exhibit A-1

ENTERGY NEW ORLEANS, LLC

By:

Name: [Type Signatory Name]

Title: [Type Signatory Title]

Exhibit A-2

Document

Execution Version

Exhibit 4(d)

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of June 29, 2023 (this “Amendment”), is made by and among ENTERGY CORPORATION, a Delaware corporation (the “Borrower”), each Lender (as defined in the Credit Agreement referred to below) that is party hereto and CITIBANK, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”) under the Existing Credit Agreement referred to below.

RECITALS

WHEREAS, the Borrower has entered into that certain Third Amended and Restated Credit Agreement dated as of June 3, 2021, as amended and extended (as in effect immediately prior to the effectiveness of this Amendment, the “Existing Credit Agreement”), among the Borrower, the Lenders, the LC Issuing Banks and the Administrative Agent;

WHEREAS, the Borrower has requested that the Lenders agree, on the terms and conditions set forth herein, to amend the Existing Credit Agreement on the terms and conditions set forth herein.

WHEREAS, the Lenders and the Administrative Agent are willing to make the amendment requested by the Borrower, subject to the terms and conditions of this Amendment and effective as of the Effective Date (as defined below).

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree and covenant as follows:

1. Interpretation. Except as otherwise defined in this Amendment, terms defined in the Existing Credit Agreement are used herein (including in the recitals hereof) as defined therein.

2. Amendments to the Existing Credit Agreement. Upon the Effective Date determined in accordance with Section 4 below, the definitions of “Non-Recourse Debt” and “Significant Subsidiary” in Section 1.01 of the Existing Credit Agreement are hereby amended as set forth below to delete the stricken text in red (indicated in the same manner as the following example: stricken text) and to add the double-underlined text in blue (indicated in the same manner as the following example: double-underlined text).

“Non-Recourse Debt” means any Debt of any Subsidiary of the Borrower that does not constitute Debt of the Borrower, any Significant Subsidiary, SERI or Entergy New Orleans.

“Significant Subsidiary” means (i) Entergy Arkansas, Entergy Mississippi, Entergy Louisiana, and Entergy Texas and SERI; and (ii) any other Domestic Regulated Utility Subsidiary of the Borrower whose: (A) total assets (after intercompany eliminations) exceed 10% of the total assets of the Borrower and its Subsidiaries or (B) net worth exceeds 10% of the Consolidated Net Worth of the Borrower and its Subsidiaries, in each case as shown on the most recent audited consolidated balance sheet of the Borrower and its Subsidiaries. In no event shall

“Significant Subsidiary” include any Domestic Regulated Utility Subsidiary that, as of December 31, 20222020, (1) had total assets (after intercompany eliminations) that were 10% or less of the total assets of the Borrower and its Subsidiaries as of such date or (2) had a net worth that was 10% or less of the Consolidated Net Worth of the Borrower and its Subsidiaries as of such date.

3. Representations and Warranties. The Borrower makes the following representations and warranties to the Lenders:

(a) the representations and warranties contained in Section 4.01 of the Credit Agreement, which are incorporated by reference herein, mutatis mutandis (with each reference in such representations and warranties to “this Agreement”, “hereunder” and words of like import referring to the Existing Credit Agreement being deemed to be a reference to the Credit Agreement and each reference therein to one or more “Loan Documents” and words of like import being deemed to be a reference that includes this Amendment and the Credit Agreement); provided that the representations and warranties contained in clause (e) of Section 4.01 of the Credit Agreement shall be deemed to refer to the most recent financial statements delivered pursuant to subclauses (i) and (ii) of Section 5.01(c) of the Credit Agreement; provided further that the references in the representations and warranties to “Disclosure Documents” contained in clauses (e) and (f) of Section 4.01 of the Credit Agreement shall be deemed to refer to the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and Current Reports on Form 8-K filed in 2023 prior to the date hereof; and

(b) SERI’s total assets (after intercompany eliminations) do not exceed 10% of the total assets of the Borrower and its Subsidiaries and (B) SERI’s net worth does not exceed 10% of the Consolidated Net Worth of the Borrower and its Subsidiaries, in each case as shown on the audited consolidated balance sheet of the Borrower and its Subsidiaries as of December 31, 2022.

4. Conditions Precedent. The effectiveness of this Amendment, including the amendments in Section 2 above, is subject to satisfaction of each of the following conditions precedent, and the date of such effectiveness shall be the “Effective Date”:

(a) the Administrative Agent shall have received this Amendment, duly executed by the Borrower and the Majority Lenders on or before the Effective Date;

(b) the representations and warranties in Section 3 shall be true and correct as of the Effective Date; and

(c) the receipt by the Administrative Agent and each Lender party hereto of copies of all the Disclosure Documents referred to in clause (a) of Section 3 (it being agreed that such Disclosure Documents will be deemed to have been delivered under this clause (c) if such documents are publicly available on EDGAR or on the Borrower’s website no later than the third Business Day immediately preceding the Effective Date) in form and substance satisfactory to the recipients.

5. Miscellaneous.

(a) On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the

Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Existing Credit Agreement as amended by this Amendment (the Existing Credit Agreement, as so amended, the “Credit Agreement”). For all purposes of the Credit Agreement and the other Loan Documents, this Amendment shall constitute a “Loan Document”.

(b) Except as specifically provided by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed by all of the parties hereto.

(c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

(d) The Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Amendment and the other documents to be delivered hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to their rights and responsibilities under this Amendment. The Borrower further agrees to pay on demand all reasonable out-of-pocket costs and expenses, if any (including, without limitation, reasonable counsel fees and expenses of counsel), incurred by the Administrative Agent and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Amendment, the Credit Agreement and any other documents to be delivered hereunder, including, without limitation, counsel fees and expenses in connection with the enforcement of rights under this clause.

(e) THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

(f) This Amendment shall be subject to the provisions of Section 8.09 (“Consent to Jurisdiction; Waiver of Jury Trial”) of the Credit Agreement, which is incorporated by reference herein, mutatis mutandis.

(g) This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment. The words “execution,” “signed,” “signature,” and words of like import in this Amendment and any certificate or other instrument delivered pursuant to this Amendment, shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in all applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. In addition, if any Lender or the Administrative

Agent reasonably requests that any party hereto manually execute this Amendment, or any certificate or instrument delivered in connection herewith, that has not been manually executed by such party, such party shall provide a manually executed original to the party making such request promptly following such request.

[Remainder of this page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

ENTERGY CORPORATION

By: /s/ Barrett E. Green

Name: Barrett E. Green

Title: Vice President and Treasurer

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

CITIBANK, N.A.,

as Administrative Agent and a Lender

By: /s/ Richard D. Rivera

Name: Richard Rivera

Title: Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

JPMORGAN CHASE BANK, N.A.,

as a Lender

By: /s/ Khawaja Tariq

Name: Khawaja Tariq

Title: Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By: /s/ Whitney Shellenberg

Name: Whitney Shellenberg

Title: Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

BNP PARIBAS,

as a Lender

By: /s/ Denis O’Meara

Name: Denis O’Meara

Title: Managing Director

By: /s/ Victor Padilla

Name: Victor Padilla

Title: Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

MIZUHO BANK, LTD.,

as a Lender

By: /s/ Edward Sacks

Name: Edward Sacks

Title: Authorized Signatory

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

MUFG BANK, LTD.,

as a Lender

By: /s/ Matthew Bly

Name: Matthew Bly

Title: Director

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

THE BANK OF NOVA SCOTIA,

as a Lender

By: /s/ David Dewar

Name: David Dewar

Title: Director

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

BANK OF AMERICA, N.A.,

as a Lender

By: /s/ Jacqueline G. Margetis

Name: Jacqueline G. Margetis

Title: Director

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

GOLDMAN SACHS BANK USA,

as a Lender

By: /s/ Andrew B. Vernon

Name: Andrew Vernon

Title: Authorized Signature

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

MORGAN STANLEY BANK, N.A.,

as a Lender

By: /s/ Michael King

Name: Michael King

Title: Authorized Signatory

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

KEYBANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ Lisa A. Ryder

Name: Lisa A. Ryder

Title: Senior Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

COBANK, ACB,

as a Lender

By: /s/ Mike Rehmer

Name: Mike Rehmer

Title: Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

BARCLAYS BANK PLC,

as a Lender

By: /s/ Sydney G. Dennis

Name: Sydney G. Dennis

Title: Director

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

THE BANK OF NEW YORK MELLON,

as a Lender

By: /s/ Molly H. Ross

Name: Molly H. Ross

Title: Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

REGIONS BANK,

as a Lender

By: /s/ Daniel Capps

Name: Daniel Capps

Title: Director

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

SUMITOMO MITSUI BANKING CORPORATION, as a Lender

By: /s/ Suela Von Bargen

Name: Suela Von Bargen

Title: Director

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

U.S. BANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ John M. Eyerman

Name: John M. Eyerman

Title: Senior Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

THE NORTHERN TRUST COMPANY,

as a Lender

By: /s/ Keith Burson

Name: Keith L. Burson

Title: Senior Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

HANCOCK WHITNEY BANK,

as a Lender

By: /s/ Jennifer Feske

Name: Jennifer Feske

Title: Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

CAPITAL ONE, NATIONAL ASSOCIATION,

as a Lender

By: /s/ Kyle Fontanille

Name: Kyle Fontanille

Title: Vice President

[First Amendment to Credit Agreement – Entergy Corporation (2023)]

Document

Execution Version

Exhibit 4(e)

SECOND EXTENSION TO CREDIT AGREEMENT

THIS SECOND EXTENSION TO CREDIT AGREEMENT, dated as of June 29, 2023 (this “Extension”), is made by and among ENTERGY CORPORATION, a Delaware corporation (the “Borrower”), each Lender (as defined in the Credit Agreement referred to below) that is party hereto, each LC Issuing Bank (as defined in the Credit Agreement referred to below) and CITIBANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) under that certain Third Amended and Restated Credit Agreement dated as of June 3, 2021, as amended and extended (as in effect immediately prior to the effectiveness of this Extension, the “Credit Agreement”), among the Borrower, the Lenders, the LC Issuing Banks and the Administrative Agent.

RECITALS

WHEREAS, the Borrower has delivered an irrevocable written request dated June 6, 2023 to the Administrative Agent requesting an extension of the existing Termination Date for each Lender to June 3, 2028 pursuant to Section 2.18 of the Credit Agreement (the “Extension Request”).

WHEREAS, the requisite parties to the Credit Agreement have agreed to the Extension Request on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree and covenant as follows:

SECTION I. Definitions.

Except as otherwise defined in this Extension, terms defined in the Credit Agreement are used herein (including in the recitals hereof) as defined therein.

SECTION II. Extension to the Credit Agreement.

(a) Upon the Effective Date (as defined below) determined in accordance with Section IV below, each undersigned Lender agrees to extend the Termination Date applicable to such Lender’s Commitment to June 3, 2028.

(b) The parties hereto acknowledge that the extension provided herein is the second of only two extensions permitted under the Credit Agreement. Notwithstanding anything to the contrary under the Credit Agreement, the Borrower acknowledges and agrees that the Borrower has fully exercised its right to request an extension of the Termination Date according to the terms and conditions set forth in Section 2.18 of the Credit Agreement and, after giving effect to the extension provided herein, no further extensions of the Termination Date pursuant to Section 2.18 of the Credit Agreement shall be allowed.

SECTION III. Representations and Warranties.

The Borrower makes the following representations and warranties to the Lenders, the LC Issuing Banks and the Administrative Agent:

(a) the representations and warranties contained in Section 4.01 of the Credit Agreement, which are incorporated by reference herein, mutatis mutandis; provided that the representations and warranties contained in clause (e) of Section 4.01 of the Credit Agreement shall be deemed to refer to the most recent financial statements delivered pursuant to subclauses (i) and (ii) of Section 5.01(c) of the Credit Agreement; provided further that the references in the representations and warranties to “Disclosure Documents” contained in clauses (e) and (f) of Section 4.01 of the Credit Agreement shall be deemed to refer to the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and Current Reports on Form 8-K filed in 2023 prior to the date hereof; and

(b) this Extension and the Credit Agreement as so extended are the legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms, subject, however, to any applicable bankruptcy, reorganization, rearrangement, moratorium or similar laws affecting generally the enforcement of creditors’ rights and remedies and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

SECTION IV. Conditions Precedent.

The extension in Section II above shall become effective upon the satisfaction of each of the following conditions precedent and the date of such effectiveness shall be the “Effective Date”:

(a) the receipt by the Administrative Agent of counterparts of this Extension executed by the Borrower, the LC Issuing Banks and the Majority Lenders;

(b) no Event of Default has occurred and is continuing;

(d) the receipt by the Administrative Agent and each Lender party hereto of copies of all the Disclosure Documents referred to in clause (a) of Section III (it being agreed that such Disclosure Documents will be deemed to have been delivered under this clause (d) if such documents are publicly available on EDGAR or on the Borrower’s website no later than the third Business Day immediately preceding the Effective Date) in form and substance satisfactory to the recipients;

(e) the receipt by the Administrative Agent of the fees payable pursuant to the Fee Letter dated June 6, 2023 among Citigroup Global Markets Inc., the Borrower and others; and

(f) the receipt by the Administrative Agent of the documents described in Section 2.18 of the Credit Agreement with respect to the Extension Request, including certificates, copies of resolutions and governmental and regulatory approvals and favorable opinions of counsel (including the opinion of in-house counsel and special New York counsel) to the Borrower in form and substance satisfactory to the Administrative Agent.

SECTION V. Miscellaneous.

Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as extended by this Extension. For all purposes of the Credit Agreement and the other Loan Documents, this Extension and the Fee Letter referred to above shall each constitute a “Loan Document”.

(b) Except as specifically provided by this Extension, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed by all of the parties hereto.

(c) The execution, delivery and effectiveness of this Extension shall not operate as a waiver of any right, power or remedy of any Lender, LC Issuing Bank or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

(d) The Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Extension and the other documents to be delivered hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to their rights and responsibilities under this Extension. The Borrower further agrees to pay on demand all reasonable out-of-pocket costs and expenses, if any (including, without limitation, reasonable counsel fees and expenses of counsel), incurred by the Administrative Agent, the LC Issuing Banks and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Extension, the Credit Agreement and any other documents to be delivered hereunder, including, without limitation, counsel fees and expenses in connection with the enforcement of rights under this clause.

(e) THIS EXTENSION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

(f) This Extension shall be subject to the provisions of Section 8.09 (“Consent to Jurisdiction; Waiver of Jury Trial”) of the Credit Agreement, which is incorporated by reference herein, mutatis mutandis.

(g) This Extension may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Extension by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Extension. The words “execution,” “signed,” “signature,” and words of like import in this Extension and any certificate or other instrument delivered pursuant to this Extension, shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in all applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. In addition, if any Lender, any LC Issuing Bank or the Administrative Agent reasonably requests that any party hereto manually execute this Extension, or any certificate or instrument delivered in connection herewith, that has not been manually executed by such party, such party shall provide a manually executed original to the party making such request promptly following such request.

[Remainder of this page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Extension to be executed by their respective officers thereunto duly authorized, as of the date first above written.

ENTERGY CORPORATION

By: /s/ Barrett E. Green

Name: Barrett E. Green

Title: Vice President and Treasurer

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

CITIBANK, N.A.,

as Administrative Agent, a Lender and LC Issuing Bank

By: /s/ Richard D. Rivera

Name: Richard Rivera

Title: Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

JPMORGAN CHASE BANK, N.A.,

as a Lender

By: /s/ Khawaja Tariq

Name: Khawaja Tariq

Title: Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By: /s/ Whitney Shellenberg

Name: Whitney Shellenberg

Title: Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

BNP PARIBAS,

as a Lender

By: /s/ Denis O’Meara

Name: Denis O’Meara

Title: Managing Director

By: /s/ Victor Padilla

Name: Victor Padilla

Title: Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

MIZUHO BANK, LTD.,

as a Lender

By: /s/ Edward Sacks

Name: Edward Sacks

Title: Authorized Signatory

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

MUFG BANK, LTD.,

as a Lender and LC Issuing Bank

By: /s/ Matthew Bly

Name: Matthew Bly

Title: Director

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

THE BANK OF NOVA SCOTIA,

as a Lender

By: /s/ David Dewar

Name: David Dewar

Title: Director

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

BANK OF AMERICA, N.A.,

as a Lender

By: /s/ Jacqueline G. Margetis

Name: Jacqueline G. Margetis

Title: Director

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

GOLDMAN SACHS BANK USA,

as a Lender

By: /s/ Andrew B. Vernon

Name: Andrew Vernon

Title: Authorized Signatory

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

MORGAN STANLEY BANK, N.A.,

as a Lender

By: /s/ Michael King

Name: Michael King

Title: Authorized Signatory

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

KEYBANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ Lisa A. Ryder

Name: Lisa A. Ryder

Title: Senior Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

COBANK, ACB,

as a Lender

By: /s/ Mike Rehmer

Name: Mike Rehmer

Title: Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

BARCLAYS BANK PLC,

as a Lender

By: /s/ Sydney G. Dennis

Name: Sydney G. Dennis

Title: Director

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

THE BANK OF NEW YORK MELLON,

as a Lender

By: /s/ Molly H. Ross

Name: Molly H. Ross

Title: Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

REGIONS BANK,

as a Lender

By: /s/ Daniel Capps

Name: Daniel Capps

Title: Director

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

SUMITOMO MITSUI BANKING CORPORATION, as a Lender

By: /s/ Suela Von Bargen

Name: Suela Von Bargen

Title: Director

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

U.S. BANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ John M. Eyerman

Name: John M. Eyerman

Title: Senior Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

THE NORTHERN TRUST COMPANY,

as a Lender

By: /s/ Keith L. Burson

Name: Keith L. Burson

Title: Senior Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

HANCOCK WHITNEY BANK,

as a Lender

By: /s/ Jennifer Feske

Name: Jennifer Feske

Title: Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

CAPITAL ONE, NATIONAL ASSOCIATION,

as a Lender

By: /s/ Kyle Fontanille

Name: Kyle Fontanille

Title: Vice President

[Second Extension to Credit Agreement – Entergy Corporation (2023)]

Document

Execution Version

Exhibit 4(f)

SECOND EXTENSION TO CREDIT AGREEMENT

THIS SECOND EXTENSION TO CREDIT AGREEMENT, dated as of June 29, 2023 (this “Extension”), is made by and among ENTERGY ARKANSAS, LLC, a Texas limited liability company (the “Borrower”), each Lender (as defined in the Credit Agreement referred to below) that is party hereto, each LC Issuing Bank (as defined in the Credit Agreement referred to below) and CITIBANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) under that certain Third Amended and Restated Credit Agreement dated as of June 3, 2021, as amended and extended (as in effect immediately prior to the effectiveness of this Extension, the “Credit Agreement”), among the Borrower, the Lenders, the LC Issuing Banks and the Administrative Agent.

RECITALS

WHEREAS, the requisite parties to the Credit Agreement have agreed to the Extension Request on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree and covenant as follows:

SECTION I. Definitions.

Except as otherwise defined in this Extension, terms defined in the Credit Agreement are used herein (including in the recitals hereof) as defined therein.

SECTION II. Extension to the Credit Agreement.

(a)Upon the Effective Date (as defined below) determined in accordance with Section IV below, each undersigned Lender agrees to extend the Termination Date applicable to such Lender’s Commitment to June 3, 2028.

(b)The parties hereto acknowledge that the extension provided herein is the second of only two extensions permitted under the Credit Agreement. Notwithstanding anything to the contrary under the Credit Agreement, the Borrower acknowledges and agrees that the Borrower has fully exercised its right to request an extension of the Termination Date according to the terms and conditions set forth in Section 2.18 of the Credit Agreement and, after giving effect to the extension provided herein, no further extensions of the Termination Date pursuant to Section 2.18 of the Credit Agreement shall be allowed.

SECTION III. Representations and Warranties.

The Borrower makes the following representations and warranties to the Lenders, the LC Issuing Banks and the Administrative Agent:

(a)the representations and warranties contained in Section 4.01 of the Credit Agreement, which are incorporated by reference herein, mutatis mutandis; provided that the representations and warranties contained in clause (e) of Section 4.01 of the Credit Agreement shall be deemed to refer to the most recent financial statements delivered pursuant to subclauses (i) and (ii) of Section 5.01(c) of the Credit Agreement; provided further that the references in the representations and warranties to “Disclosure Documents” contained in clauses (e) and (f) of Section 4.01 of the Credit Agreement shall be deemed to refer to the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and Current Reports on Form 8-K filed in 2023 prior to the date hereof; and

(b)this Extension and the Credit Agreement as so extended are the legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms, subject, however, to any applicable bankruptcy, reorganization, rearrangement, moratorium or similar laws affecting generally the enforcement of creditors’ rights and remedies and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).

SECTION IV. Conditions Precedent.

The extension in Section II above shall become effective upon the satisfaction of each of the following conditions precedent and the date of such effectiveness shall be the “Effective Date”:

(a)the receipt by the Administrative Agent of counterparts of this Extension executed by the Borrower, the LC Issuing Banks and the Majority Lenders;

(b)no Event of Default has occurred and is continuing;

(c)the representations and warranties in Section III shall be true and correct as of the Effective Date;

(d)the receipt by the Administrative Agent and each Lender party hereto of copies of all the Disclosure Documents referred to in clause (a) of Section III (it being agreed that such Disclosure Documents will be deemed to have been delivered under this clause (d) if such documents are publicly available on EDGAR or on the Borrower’s website no later than the third Business Day immediately preceding the Effective Date) in form and substance satisfactory to the recipients;

(e)the receipt by the Administrative Agent of the fees payable pursuant to the Fee Letter dated June 6, 2023 among Citigroup Global Markets Inc., the Borrower and others; and

(f)the receipt by the Administrative Agent of the documents described in Section 2.18 of the Credit Agreement with respect to the Extension Request, including certificates, copies of resolutions and governmental and regulatory approvals and favorable opinions of counsel (including the opinion of in-house counsel and special New York, Texas and Arkansas counsel) to the Borrower in form and substance satisfactory to the Administrative Agent.

SECTION V. Miscellaneous.

(a) On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to

the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as extended by this Extension. For all purposes of the Credit Agreement and the other Loan Documents, this Extension and the Fee Letter referred to above shall each constitute a “Loan Document”.

(b)Except as specifically provided by this Extension, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed by all of the parties hereto.

(c)The execution, delivery and effectiveness of this Extension shall not operate as a waiver of any right, power or remedy of any Lender, LC Issuing Bank or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

(d)The Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Extension and the other documents to be delivered hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to their rights and responsibilities under this Extension. The Borrower further agrees to pay on demand all reasonable out-of-pocket costs and expenses, if any (including, without limitation, reasonable counsel fees and expenses of counsel), incurred by the Administrative Agent, the LC Issuing Banks and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Extension, the Credit Agreement and any other documents to be delivered hereunder, including, without limitation, counsel fees and expenses in connection with the enforcement of rights under this clause.

(e)THIS EXTENSION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

(f)This Extension shall be subject to the provisions of Section 8.09 (“Consent to Jurisdiction; Waiver of Jury Trial”) of the Credit Agreement, which is incorporated by reference herein, mutatis mutandis.

(g)This Extension may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Extension by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Extension. The words “execution,” “signed,” “signature,” and words of like import in this Extension and any certificate or other instrument delivered pursuant to this Extension, shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in all applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. In addition, if any Lender, any LC Issuing Bank or the Administrative Agent reasonably requests that any party hereto manually execute this Extension, or any certificate or instrument delivered in connection herewith, that has not

been manually executed by such party, such party shall provide a manually executed original to the party making such request promptly following such request.

[Remainder of this page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Extension to be executed by their respective officers thereunto duly authorized, as of the date first above written.

ENTERGY ARKANSAS, LLC

By: /s/ Kevin J. Marino

Name: Kevin J. Marino

Title: Assistant Treasurer

[Second Extension to Credit Agreement – Entergy Arkansas, LLC (2023)]

CITIBANK, N.A.,

as Administrative Agent and Lender

By: /s/ Richard D. Rivera

Name: Richard Rivera

Title: Vice President

JPMORGAN CHASE BANK, N.A.,

as a Lender and LC Issuing Bank

By: /s/ Khawaja Tariq

Name: Khawaja Tariq

Title: Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By: /s/ Whitney Shellenberg

Name: Whitney Shellenberg

Title: Vice President

BNP PARIBAS,

as a Lender

By: /s/ Denis O’Meara

Name: Denis O’Meara

Title: Managing Director

By: /s/ Victor Padilla

Name: Victor Padilla

Title: Vice President

MIZUHO BANK, LTD.,

as a Lender

By: /s/ Edward Sacks

Name: Edward Sacks

Title: Authorized Signatory

MUFG BANK, LTD.,

as a Lender

By: /s/ Matthew Bly

Name: Matthew Bly

Title: Director

THE BANK OF NOVA SCOTIA,

as a Lender

By: /s/ David Dewar

Name: David Dewar

Title: Director

BANK OF AMERICA, N.A., as Bank

By: /s/ Jacqueline G. Margetis
Name: Jacqueline G. Margetis Title: Director

GOLDMAN SACHS BANK USA, as Bank

By: /s/ Andrew B. Vernon
Name: Andrew Vernon Title: Authorized Signatory

MORGAN STANLEY BANK, N.A., as Bank

By: /s/ Michael King
Name: Michael King Title: Authorized Signatory

KEYBANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ Lisa A. Ryder

Name: Lisa A. Ryder

Title: Senior Vice President

COBANK, ACB,

as a Lender

By: /s/ Mike Rehmer

Name: Mike Rehmer

Title: Vice President

BARCLAYS BANK PLC,

as a Lender

By: /s/ Sydney G. Dennis

Name: Sydney G. Dennis

Title: Director

THE BANK OF NEW YORK MELLON,

as a Lender

By: /s/ Molly H. Ross

Name: Molly H. Ross

Title: Vice President

REGIONS BANK,

as a Lender

By: /s/ Daniel Capps

Name: Daniel Capps

Title: Director

SUMITOMO MITSUI BANKING CORPORATION, as a Lender

By: /s/ Suela Von Bargen

Name: Suela Von Bargen

Title: Director

U.S. BANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ John M. Eyerman

Name: John M. Eyerman

Title: Senior Vice President

Document

Execution Version

Exhibit 4(g)

SECOND EXTENSION TO CREDIT AGREEMENT

THIS SECOND EXTENSION TO CREDIT AGREEMENT, dated as of June 29, 2023 (this “Extension”), is made by and among ENTERGY LOUISIANA, LLC, a Texas limited liability company (the “Borrower”), each Lender (as defined in the Credit Agreement referred to below) that is party hereto, each LC Issuing Bank (as defined in the Credit Agreement referred to below) and CITIBANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) under that certain Third Amended and Restated Credit Agreement dated as of June 3, 2021, as amended and extended (as in effect immediately prior to the effectiveness of this Extension, the “Credit Agreement”), among the Borrower, the Lenders, the LC Issuing Banks and the Administrative Agent.

RECITALS

WHEREAS, the requisite parties to the Credit Agreement have agreed to the Extension Request on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree and covenant as follows:

SECTION I. Definitions.

Except as otherwise defined in this Extension, terms defined in the Credit Agreement are used herein (including in the recitals hereof) as defined therein.

SECTION II. Extension to the Credit Agreement.

SECTION III. Representations and Warranties.

The Borrower makes the following representations and warranties to the Lenders, the LC Issuing Banks and the Administrative Agent:

SECTION IV. Conditions Precedent.

The extension in Section II above shall become effective upon the satisfaction of each of the following conditions precedent and the date of such effectiveness shall be the “Effective Date”:

(a) the receipt by the Administrative Agent of counterparts of this Extension executed by the Borrower, the LC Issuing Banks and the Majority Lenders;

(b) no Event of Default has occurred and is continuing;

(e) the receipt by the Administrative Agent of the fees payable pursuant to the Fee Letter dated June 6, 2023 among Citigroup Global Markets Inc., the Borrower and others; and

(f) the receipt by the Administrative Agent of the documents described in Section 2.18 of the Credit Agreement with respect to the Extension Request, including certificates, copies of resolutions and governmental and regulatory approvals and favorable opinions of counsel (including the opinion of in-house counsel and special New York and Texas counsel) to the Borrower in form and substance satisfactory to the Administrative Agent.

SECTION V. Miscellaneous.

(a) On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as extended by this Extension. For all purposes of the Credit Agreement and the other Loan Documents, this Extension and the Fee Letter referred to above shall each constitute a “Loan Document”.

(d) The Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Extension and the other documents to be delivered hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to their rights and responsibilities under this Extension. The Borrower further agrees to pay on demand all reasonable out-of-pocket costs and expenses, if any (including, without limitation, reasonable counsel fees and expenses of counsel), incurred by the Administrative Agent, the LC Issuing Banks and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Extension, the Credit Agreement and any other documents to be delivered hereunder, including, without limitation, counsel fees and expenses in connection with the enforcement of rights under this clause.

(e) THIS EXTENSION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Uniform Electronic Transactions Act. In addition, if any Lender, any LC Issuing Bank or the Administrative Agent reasonably requests that any party hereto manually execute this Extension, or any certificate or instrument delivered in connection herewith, that has not been manually executed by such party, such party shall provide a manually executed original to the party making such request promptly following such request.

[Remainder of this page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Extension to be executed by their respective officers thereunto duly authorized, as of the date first above written.

ENTERGY LOUISIANA, LLC

By: /s/ Kevin J. Marino

Name: Kevin J. Marino

Title: Assistant Treasurer

[Second Extension to Credit Agreement – Entergy Louisiana, LLC (2023)]

CITIBANK, N.A.,

as Administrative Agent and Lender

By: /s/ Richard D. Rivera

Name: Richard Rivera

Title: Vice President

JPMORGAN CHASE BANK, N.A.,

as a Lender

By: /s/ Khawaja Tariq

Name: Khawaja Tariq

Title: Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender and LC Issuing Bank

By: /s/ Whitney Shellenberg

Name: Whitney Shellenberg

Title: Vice President

BNP PARIBAS,

as a Lender and LC Issuing Bank

By: /s/ Denis O’Meara

Name: Denis O’Meara

Title: Managing Director

By: /s/ Victor Padilla

Name: Victor Padilla

Title: Vice President

MIZUHO BANK, LTD.,

as a Lender

By: /s/ Edward Sacks

Name: Edward Sacks

Title: Authorized Signatory

MUFG BANK, LTD.,

as a Lender

By: /s/ Matthew Bly

Name: Matthew Bly

Title: Director

THE BANK OF NOVA SCOTIA,

as a Lender

By: /s/ David Dewar

Name: David Dewar

Title: Director

BANK OF AMERICA, N.A., as a Lender

By: /s/ Jacqueline G. Margetis

Name: Jacqueline G. Margetis

Title: Director

GOLDMAN SACHS BANK USA, as a Lender

By: /s/ Andrew B. Vernon

Name: Andrew Vernon

Title: Authorized Signatory

MORGAN STANLEY BANK, N.A., as a Lender

By: /s/ Michael King

Name: Michael King

Title: Authorized Signatory

KEYBANK NATIONAL ASSOCIATION, as a Lender

By: /s/ Lisa A. Ryder

Name: Lisa A. Ryder

Title: Senior Vice President

BARCLAYS BANK PLC, as a Lender

By: /s/ Sydney G. Dennis

Name: Sydney G. Dennis

Title: Director

COBANK, ACB, as a Lender

By: /s/ Mike Rehmer

Name: Mike Rehmer

Title: Vice President

THE BANK OF NEW YORK MELLON, as a Lender

By: /s/ Molly H. Ross

Name: Molly H. Ross

Title: Vice President

REGIONS BANK, as a Lender

By: /s/ Daniel Capps

Name: Daniel Capps

Title: Director

SUMITOMO MITSUI BANKING CORPORATION, as a Lender

By: /s/ Suela Von Bargen

Name: Suela Von Bargen

Title: Director

U.S. BANK NATIONAL ASSOCIATION, as a Lender

By: /s/ John M. Eyerman

Name: John M. Eyerman

Title: Senior Vice President

Document

Execution Version

Exhibit 4(h)

EXTENSION TO CREDIT AGREEMENT

THIS EXTENSION TO CREDIT AGREEMENT, dated as of June 29, 2023 (this “Extension”), is made by and among ENTERGY MISSISSIPPI, LLC, a Texas limited liability company (the “Borrower”), each Lender (as defined in the Credit Agreement referred to below) that is party hereto and CITIBANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) under that certain Credit Agreement dated as of April 14, 2022 (as in effect immediately prior to the effectiveness of this Extension, the “Credit Agreement”), among the Borrower, the Lenders and the Administrative Agent.

RECITALS

WHEREAS, the Borrower has delivered an irrevocable written request dated June 6, 2023 to the Administrative Agent requesting an extension of the existing Termination Date for each Lender to July 14, 2025 pursuant to Section 2.16 of the Credit Agreement (the “Extension Request”).

WHEREAS, the requisite parties to the Credit Agreement have agreed to the Extension Request on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree and covenant as follows:

SECTION I. Definitions.

Except as otherwise defined in this Extension, terms defined in the Credit Agreement are used herein (including in the recitals hereof) as defined therein.

SECTION II. Extension to the Credit Agreement.

(b) The parties hereto acknowledge that the extension provided herein is the only extension permitted under the Credit Agreement. Notwithstanding anything to the contrary under the Credit Agreement, the Borrower acknowledges and agrees that the Borrower has fully exercised its right to request an extension of the Termination Date according to the terms and conditions set forth in Section 2.16 of the Credit Agreement and, after giving effect to the extension provided herein, no further extensions of the Termination Date pursuant to Section 2.16 of the Credit Agreement shall be allowed.

SECTION III. Representations and Warranties.

The Borrower makes the following representations and warranties to the Lenders and the Administrative Agent:

Agreement shall be deemed to refer to the most recent financial statements delivered pursuant to subclauses (i) and (ii) of Section 5.01(c) of the Credit Agreement; provided further that the references in the representations and warranties to “Disclosure Documents” contained in clauses (e) and (f) of Section 4.01 of the Credit Agreement shall be deemed to refer to the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and Current Reports on Form 8-K filed in 2023 prior to the date hereof; and

SECTION IV. Conditions Precedent.

The extension in Section II above shall become effective upon the satisfaction of each of the following conditions precedent and the date of such effectiveness shall be the “Effective Date”:

(a) the receipt by the Administrative Agent of counterparts of this Extension executed by the Borrower and the Majority Lenders;

(b) no Event of Default has occurred and is continuing;

(e) the receipt by the Administrative Agent of the fees payable pursuant to the Fee Letter dated June 6, 2023 among Citigroup Global Markets Inc., the Borrower and others; and

(f) the receipt by the Administrative Agent of the documents described in Section 2.16 of the Credit Agreement with respect to the Extension Request, including certificates, copies of resolutions and governmental and regulatory approvals and favorable opinions of counsel (including the opinion of in-house counsel and special New York, Mississippi and Texas counsel) to the Borrower in form and substance satisfactory to the Administrative Agent.

SECTION V. Miscellaneous.

Agreement shall mean and be a reference to the Credit Agreement as extended by this Extension. For all purposes of the Credit Agreement and the other Loan Documents, this Extension and the Fee Letter referred to above shall each constitute a “Loan Document”.

(c) The execution, delivery and effectiveness of this Extension shall not operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

(d) The Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Extension and the other documents to be delivered hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to their rights and responsibilities under this Extension. The Borrower further agrees to pay on demand all reasonable out-of-pocket costs and expenses, if any (including, without limitation, reasonable counsel fees and expenses of counsel), incurred by the Administrative Agent and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Extension, the Credit Agreement and any other documents to be delivered hereunder, including, without limitation, counsel fees and expenses in connection with the enforcement of rights under this clause.

(e) THIS EXTENSION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

(g) This Extension may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Extension by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Extension. The words “execution,” “signed,” “signature,” and words of like import in this Extension and any certificate or other instrument delivered pursuant to this Extension, shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in all applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. In addition, if any Lender or the Administrative Agent reasonably requests that any party hereto manually execute this Extension, or any certificate or instrument delivered in connection herewith, that has not been manually executed by such party, such party shall provide a manually executed original to the party making such request promptly following such request.

[Remainder of this page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Extension to be executed by their respective officers thereunto duly authorized, as of the date first above written.

ENTERGY MISSISSIPPI, LLC

By: /s/ Kevin J. Marino

Name: Kevin J. Marino

Title: Assistant Treasurer

[Extension to Credit Agreement – Entergy Mississippi, LLC (2023)]

CITIBANK, N.A.,

as Administrative Agent and Lender

By: /s/ Richard D. Rivera

Name: Richard Rivera

Title: Vice President

JPMORGAN CHASE BANK, N.A.,

as a Lender

By: /s/ Khawaja Tariq

Name: Khawaja Tariq

Title: Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By: /s/ Whitney Shellenberg

Name: Whitney Shellenberg

Title: Vice President

BNP PARIBAS,

as a Lender

By: /s/ Denis O’Meara

Name: Denis O’Meara

Title: Managing Director

By: /s/ Victor Padilla

Name: Victor Padilla

Title: Vice President

MIZUHO BANK, LTD.,

as a Lender

By: /s/ Edward Sacks

Name: Edward Sacks

Title: Authorized Signatory

MUFG BANK, LTD.,

as a Lender

By: /s/ Matthew Bly

Name: Matthew Bly

Title: Director

THE BANK OF NOVA SCOTIA,

as a Lender

By: /s/ David Dewar

Name: David Dewar

Title: Director

Document

Execution Version

Exhibit 4(i)

SECOND EXTENSION TO CREDIT AGREEMENT

THIS SECOND EXTENSION TO CREDIT AGREEMENT, dated as of June 29, 2023 (this “Extension”), is made by and among ENTERGY TEXAS, INC., a Texas corporation (the “Borrower”), each Lender (as defined in the Credit Agreement referred to below) that is party hereto, each LC Issuing Bank (as defined in the Credit Agreement referred to below) and CITIBANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”) under that certain Third Amended and Restated Credit Agreement dated as of June 3, 2021, as amended and extended (as in effect immediately prior to the effectiveness of this Extension, the “Credit Agreement”), among the Borrower, the Lenders, the LC Issuing Banks and the Administrative Agent.

RECITALS

WHEREAS, the requisite parties to the Credit Agreement have agreed to the Extension Request on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, the parties hereto hereby agree and covenant as follows:

SECTION I. Definitions.

Except as otherwise defined in this Extension, terms defined in the Credit Agreement are used herein (including in the recitals hereof) as defined therein.

SECTION II. Extension to the Credit Agreement.

SECTION III. Representations and Warranties.

The Borrower makes the following representations and warranties to the Lenders, the LC Issuing Banks and the Administrative Agent:

SECTION IV. Conditions Precedent.

The extension in Section II above shall become effective upon the satisfaction of each of the following conditions precedent and the date of such effectiveness shall be the “Effective Date”:

(a) the receipt by the Administrative Agent of counterparts of this Extension executed by the Borrower, the LC Issuing Banks and the Majority Lenders;

(b) no Event of Default has occurred and is continuing;

(e) the receipt by the Administrative Agent of the fees payable pursuant to the Fee Letter dated June 6, 2023 among Citigroup Global Markets Inc., the Borrower and others; and

(f) the receipt by the Administrative Agent of the documents described in Section 2.18 of the Credit Agreement with respect to the Extension Request, including certificates, copies of resolutions and governmental and regulatory approvals and favorable opinions of counsel (including the opinion of in-house counsel and special New York and Texas counsel) to the Borrower in form and substance satisfactory to the Administrative Agent.

SECTION V. Miscellaneous.

(d) The Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Extension and the other documents to be delivered hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with respect to advising the Administrative Agent as to their rights and responsibilities under this Extension. The Borrower further agrees to pay on demand all reasonable out-of-pocket costs and expenses, if any (including, without limitation, reasonable counsel fees and expenses of counsel), incurred by the Administrative Agent, the LC Issuing Banks and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of this Extension, the Credit Agreement and any other documents to be delivered hereunder, including, without limitation, counsel fees and expenses in connection with the enforcement of rights under this clause.

(e) THIS EXTENSION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

[Remainder of this page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Extension to be executed by their respective officers thereunto duly authorized, as of the date first above written.

ENTERGY TEXAS, INC.

By: /s/ Kevin J. Marino

Name: Kevin J. Marino

Title: Assistant Treasurer

[Second Extension to Credit Agreement – Entergy Texas, Inc. (2023)]

CITIBANK, N.A.,

as Administrative Agent and Lender

By: /s/ Richard D. Rivera

Name: Richard Rivera

Title: Vice President

JPMORGAN CHASE BANK, N.A.,

as a Lender and LC Issuing Bank

By: /s/ Khawaja Tariq

Name: Khawaja Tariq

Title: Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender

By: /s/ Whitney Shellenberg

Name: Whitney Shellenberg

Title: Vice President

BNP PARIBAS,

as a Lender and LC Issuing Bank

By: /s/ Denis O’Meara

Name: Denis O’Meara

Title: Managing Director

By: /s/ Victor Padilla

Name: Victor Padilla

Title: Vice President

MIZUHO BANK, LTD.,

as a Lender and LC Issuing Bank

By: /s/ Edward Sacks

Name: Edward Sacks

Title: Authorized Signatory

MUFG BANK, LTD.,

as a Lender

By: /s/ Matthew Bly

Name: Matthew Bly

Title: Director

THE BANK OF NOVA SCOTIA,

as a Lender and LC Issuing Bank

By: /s/ David Dewar

Name: David Dewar

Title: Director

BANK OF AMERICA, N.A.,

as a Lender

By: /s/ Jacqueline G. Margetis

Name: Jacqueline G. Margetis

Title: Director

GOLDMAN SACHS BANK USA,

as a Lender

By: /s/ Andrew B. Vernon

Name: Andrew Vernon

Title: Authorized Signatory

MORGAN STANLEY BANK, N.A.,

as a Lender

By: /s/ Michael King

Name: Michael King

Title: Authorized Signatory

KEYBANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ Lisa A. Ryder

Name: Lisa A. Ryder

Title: Senior Vice President

BARCLAYS BANK PLC,

as a Lender

By: /s/ Sydney G. Dennis

Name: Sydney G. Dennis

Title: Director

COBANK, ACB,

as a Lender

By: /s/ Mike Rehmer

Name: Mike Rehmer

Title: Vice President

THE BANK OF NEW YORK MELLON,

as a Lender

By: /s/ Molly H. Ross

Name: Molly H. Ross

Title: Vice President

REGIONS BANK,

as a Lender

By: /s/ Daniel Capps

Name: Daniel Capps

Title: Director

SUMITOMO MITSUI BANKING CORPORATION, as a Lender

By: /s/ Suela Von Bargen

Name: Suela Von Bargen

Title: Director

U.S. BANK NATIONAL ASSOCIATION,

as a Lender

By: /s/ John M. Eyerman

Name: John M. Eyerman

Title: Senior Vice President

Document

Exhibit 31(a)

CERTIFICATIONS

I, Andrew S. Marsh, certify that:

I have reviewed this quarterly report on Form 10-Q of Entergy Corporation;

1.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

2.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

3.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

4.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Andrew S. Marsh
Andrew S. Marsh
Chairman of the Board and Chief Executive Officer
of Entergy Corporation

Date: August 3, 2023

Document

Exhibit 31(b)

CERTIFICATIONS

I, Kimberly A. Fontan, certify that:

I have reviewed this quarterly report on Form 10-Q of Entergy Corporation;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Corporation

Date: August 3, 2023

Document

Exhibit 31(c)

CERTIFICATIONS

I, Laura R. Landreaux, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy Arkansas, LLC;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Laura R. Landreaux
Laura R. Landreaux
Chair of the Board, President, and
Chief Executive Officer of Entergy Arkansas, LLC

Date: August 3, 2023

Document

Exhibit 31(d)

CERTIFICATIONS

I, Kimberly A. Fontan, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy Arkansas, LLC;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Arkansas, LLC

Date: August 3, 2023

Document

Exhibit 31(e)

CERTIFICATIONS

I, Phillip R. May, Jr., certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy Louisiana, LLC;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Phillip R. May, Jr.
Phillip R. May, Jr.
Chairman of the Board, President, and Chief Executive
Officer of Entergy Louisiana, LLC

Date: August 3, 2023

Document

Exhibit 31(f)

CERTIFICATIONS

I, Kimberly A. Fontan, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy Louisiana, LLC;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Louisiana, LLC

Date: August 3, 2023

Document

Exhibit 31(g)

CERTIFICATIONS

I, Haley R. Fisackerly, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy Mississippi, LLC;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Haley R. Fisackerly
Haley R. Fisackerly
Chairman of the Board, President, and Chief Executive Officer
of Entergy Mississippi, LLC

Date: August 3, 2023

Document

Exhibit 31(h)

CERTIFICATIONS

I, Kimberly A. Fontan, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy Mississippi, LLC;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Mississippi, LLC

Date: August 3, 2023

Document

Exhibit 31(i)

CERTIFICATIONS

I, Deanna D. Rodriguez, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy New Orleans, LLC;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Deanna D. Rodriguez
Deanna D. Rodriguez
Chair of the Board, President, and Chief Executive Officer
of Entergy New Orleans, LLC

Date: August 3, 2023

Document

Exhibit 31(j)

CERTIFICATIONS

I, Kimberly A. Fontan, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy New Orleans, LLC;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy New Orleans, LLC

Date: August 3, 2023

Document

Exhibit 31(k)

CERTIFICATIONS

I, Eliecer Viamontes, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy Texas, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Eliecer Viamontes
Eliecer Viamontes
Chairman of the Board, President, and Chief Executive Officer
of Entergy Texas, Inc.

Date: August 3, 2023

Document

Exhibit 31(l)

CERTIFICATIONS

I, Kimberly A. Fontan, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Entergy Texas, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Texas, Inc.

Date: August 3, 2023

Document

Exhibit 31(m)

CERTIFICATIONS

I, Roderick K. West, certify that:

1.I have reviewed this quarterly report on Form 10-Q of System Energy Resources, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Roderick K. West
Roderick K. West
Chairman of the Board, President, and Chief Executive Officer
of System Energy Resources, Inc.

Date: August 3, 2023

Document

Exhibit 31(n)

CERTIFICATIONS

I, Kimberly A. Fontan, certify that:

1.I have reviewed this quarterly report on Form 10-Q of System Energy Resources, Inc.;

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of System Energy Resources, Inc.

Date: August 3, 2023

Document

Exhibit 32(a)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Andrew S. Marsh, Chairman of the Board and Chief Executive Officer of Entergy Corporation (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2023 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods presented in the Report.

/s/ Andrew S. Marsh
Andrew S. Marsh
Chairman of the Board and Chief Executive Officer
of Entergy Corporation

Date: August 3, 2023

Document

Exhibit 32(b)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kimberly A. Fontan, Executive Vice President and Chief Financial Officer of Entergy Corporation (the “Company”), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Corporation

Date: August 3, 2023

Document

Exhibit 32(c)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Laura R. Landreaux, Chair of the Board, President, and Chief Executive Officer of Entergy Arkansas, LLC (the “Company”), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Laura R. Landreaux
Laura R. Landreaux
Chair of the Board, President, and Chief Executive
Officer of Entergy Arkansas, LLC

Date: August 3, 2023

Document

Exhibit 32(d)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kimberly A. Fontan, Executive Vice President and Chief Financial Officer of Entergy Arkansas, LLC (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Arkansas, LLC

Date: August 3, 2023

Document

Exhibit 32(e)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Phillip R. May, Jr., Chairman of the Board, President, and Chief Executive Officer of Entergy Louisiana, LLC (the “Company”), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Phillip R. May, Jr.
Phillip R. May, Jr.
Chairman of the Board, President, and Chief Executive
Officer of Entergy Louisiana, LLC

Date: August 3, 2023

Document

Exhibit 32(f)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kimberly A. Fontan, Executive Vice President and Chief Financial Officer of Entergy Louisiana, LLC (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Louisiana, LLC

Date: August 3, 2023

Document

Exhibit 32(g)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Haley R. Fisackerly, Chairman of the Board, President, and Chief Executive Officer of Entergy Mississippi, LLC (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Haley R. Fisackerly
Haley R. Fisackerly
Chairman of the Board, President, and Chief Executive
Officer of Entergy Mississippi, LLC

Date: August 3, 2023

Document

Exhibit 32(h)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kimberly A. Fontan, Executive Vice President and Chief Financial Officer of Entergy Mississippi, LLC (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Mississippi, LLC

Date: August 3, 2023

Document

Exhibit 32(i)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Deanna D. Rodriguez, Chair of the Board, President, and Chief Executive Officer of Entergy New Orleans, LLC (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Deanna D. Rodriguez
Deanna D. Rodriguez
Chair of the Board, President, and Chief Executive
Officer of Entergy New Orleans, LLC

Date: August 3, 2023

Document

Exhibit 32(j)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kimberly A. Fontan, Executive Vice President and Chief Financial Officer of Entergy New Orleans, LLC (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy New Orleans, LLC

Date: August 3, 2023

Document

Exhibit 32(k)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Eliecer Viamontes, Chairman of the Board, President, and Chief Executive Officer of Entergy Texas, Inc. (the “Company”), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Eliecer Viamontes
Eliecer Viamontes
Chairman of the Board, President, and Chief Executive Officer
of Entergy Texas, Inc.

Date: August 3, 2023

Document

Exhibit 32(l)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kimberly A. Fontan, Executive Vice President and Chief Financial Officer of Entergy Texas, Inc. (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial Officer
of Entergy Texas, Inc.

Date: August 3, 2023

Document

Exhibit 32(m)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Roderick K. West, Chairman of the Board, President, and Chief Executive Officer of System Energy Resources, Inc. (the “Company”), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Roderick K. West
Roderick K. West
Chairman of the Board, President, and Chief Executive Officer
of System Energy Resources, Inc.

Date: August 3, 2023

Document

Exhibit 32(n)

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kimberly A. Fontan, Executive Vice President and Chief Financial Officer of System Energy Resources, Inc. (the "Company"), certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

/s/ Kimberly A. Fontan
Kimberly A. Fontan
Executive Vice President and Chief Financial
Officer of System Energy Resources, Inc.

Date: August 3, 2023

10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

For the quarterly period ended June 30, 2023

TABLE OF CONTENTS

TABLE OF CONTENTS

FORWARD-LOOKING INFORMATION

iii

FORWARD-LOOKING INFORMATION (Continued)

FORWARD-LOOKING INFORMATION (Concluded)

DEFINITIONS

DEFINITIONS (Continued)

vii

DEFINITIONS (Concluded)

viii

ENTERGY CORPORATION AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

ENTERGY CORPORATION AND SUBSIDIARIES

NOTES TO FINANCIAL STATEMENTS

ENTERGY ARKANSAS, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

ENTERGY LOUISIANA, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

ENTERGY MISSISSIPPI, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

ENTERGY NEW ORLEANS, LLC AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

ENTERGY TEXAS, INC. AND SUBSIDIARIES

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

SYSTEM ENERGY RESOURCES, INC.

MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

ENTERGY CORPORATION AND SUBSIDIARIES

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 5. Other Information

Item 6. Exhibits

SIGNATURE

196