About Entergy Corporation

Entergy is into energy. The integrated utility holding company's subsidiaries distribute electricity to 2.9 million customers in four southern states (Arkansas, Louisiana, Mississippi, and Texas) and provide natural gas to 200,000 customers in Louisiana. The company has interests in regulated and non-regulated power plants in North America that have a combined generating capacity of about 30,000 MW. Entergy is one of the largest nuclear power generators in the US and nearly 9,000 MW of its power generation is from nuclear sources.

Operations

The company operates two business segments: Utility and Wholesale Commodities.

The Utility segment produces more than 80% of revenue by generating, transmitting, distributing, and selling electric power to customers in its regulated service areas in the US Gulf States region. The segment is composed of several regulated utility companies, including: Entergy Arkansas, Inc., Entergy Louisiana LLC, Entergy Mississippi, Inc., Entergy New Orleans, Inc., and Entergy Texas. Four nuclear power plant sites with capacity of some 5,200 MW are owned and operated by corporations that roll up into this segment. It also runs a small natural gas distribution business. Of its generation capacity about 70% is from gas, oil, and hydroelectric sources, 25% is from nuclear, and the rest comes from coal-fired plants.

Entergy Wholesale Commodities segment produces just less than 20% of total revenue through its ownership and operation of nuclear power plants (3,700 MW of capacity) and fossil fuel plants (400 MW of capacity) and the sale of its electricity on the wholesale market. The segment’s Indian Point nuclear site provides 25% of the electric power used in New York City, distributed there by Entergy’s customer, Con Edison. It also provides management services to Nebraska’s Cooper Nuclear Station (810 MW of capacity). More than 90% of this segment’s generation portfolio is nuclear-sourced.

Geographic Reach

Entergy’s Utility segments operates power plants in Arkansas, Mississippi, and Louisiana. It provides power to customers in those states plus Texas. Its transmission system covers 114,000 square miles and is comprised of nearly 16,000 circuit miles of transmission lines.

The Wholesale Commodities segment has power plants and customers in New York, Michigan, Massachusetts, Nebraska, Arkansas, and Louisiana.

Sales and Marketing

Entergy delivers electricity to 700,000 customers in Arkansas, 1.2 million in Louisiana, 450,000 in Mississippi, and 450,000 in Texas. It provides natural gas to 100,000 people in New Orleans and a further 100,000 throughout the rest of Louisiana. Entergy’s retail business (mostly through the regulated utility companies) generates 40% of sales from industrial businesses, 25% from commercial enterprises, 30% from residential, and the rest from government agencies.

Entergy Wholesale Commodities segment sells both energy and capacity from its nuclear plants to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. These customers include Consolidated Edison and Consumers Energy, companies from which Entergy purchased plants with the promise to continue providing energy to them. It also sells to transmission-sharing entities such as ISO New England, NYISO, and MISO.

The company’s regulated utilities have little retail competition as they are deemed by state regulators as the sole providers of electricity in their service areas.

Financial Performance

In recent years Entergy’s revenue remained steadfast within a range of $10 billion and $12 billion, with a $12.5 billion peak in 2014. Net income over the same period has generally been going down, with extreme decreases in 2015 and 2016.

In 2016 the company generated $10.8 billion in revenue, a 6% decline from the prior year. Electricity sales to residential customers slipped by almost 1,000 GWh (about 3%) and billed energy sales from the Entergy Wholesale Commodities segment fell nearly 4,000 GWh. The sales of a 50% owned wind farm triggered a $200 million hit to revenue.

Income in 2016 fell 130% to a net loss of $583 million, compared to 2015’s loss of $176 million. Despite a significant fall in fuel costs and purchased power expense, the decrease in revenue coupled with a $2.8 billion asset write down charge related to three of Entergy Wholesale Commodities’ nuclear plants pushed income to the biggest loss of the past decade.

Cash on hand at the end of 2016 was $1.2 billion, a decrease of $163 million from the prior year. Financing activities provided $688 million, mainly from issuance of long-term debt. Operating activities added $3.0 billion in cash during the year, while investing activities depleted the supply by $3.8 billion primarily from typical activities and the one-time $1.0 billion purchase cost of the Union Power Station in Arkansas.

Strategy

Entergy’s strategy involves continued investments in its utility firms and winding down the Entergy Wholesale Commodities segment. Following the change in its business portfolio, it is expected that Entergy’s operations will be almost completely associated with its regulated utility firms.

Utility investments are projected to be $10.4 billion between 2017 and 2019. Generation plants will receive about 45% of that amount, distribution & transmission are earmarked for about 50%, and the remaining is for general support of the utility companies. It completed the Ninemile 6 plant at the recently acquired Union Power Station and received approval for work on its St. Charles, Lake Charles, and Montgomery County Power Stations. It is awaiting approval to build its new New Orleans Power Station. It joined and is working with the MISO transmission-sharing entity to expand the transmission network.

Entergy’s Wholesale Commodities business ran into significant headwinds in recent years including competitive pricing pressure from the shale boom (which means the price of its nuclear power is higher than that produced by plants running on shale-sourced natural gas) and to a lesser extent pressure from New York state to decommission its Indian Point Energy Center. The segment is on schedule to retire Indian Point between 2020 and 2021, and already sold its FitzPatrick plants. Entergy’s Vermont Yankee nuclear plant was decommissioned in 2014. Finally, its Palisades nuclear operations are also targeted for closure in 2018 or 2022, depending on input from state regulators.

Mergers and Acquisitions

In early 2017 Entergy sold its FitzPatrick nuclear power plant to Exelon for $110 million.

In 2016, Entergy Arkansas, Entergy Louisiana, and Entergy New Orleans purchased the Union Power Station, a 1,980 MW power generation plant near El Dorado, Arkansas, consisting of four natural gas-fired, combined-cycle gas turbine power blocks. Entergy Louisiana purchased two of the power blocks and a 50% stake, and Entergy Arkansas and Entergy New Orleans each purchased one power block and a 25% undivided ownership interest in such related assets. The price for the Union Power Station was $948 million.

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Entergy Corporation

639 Loyola Ave Ste 300
New Orleans, LA 70113-7106
Phone: 1 (504) 576-4000
Fax: 1 (504) 576-4063

Stats

  • Employer Type: Public
  • Stock Symbol: ETR
  • Stock Exchange: NYSE
  • Chairman and CEO: Leo P. Denault
  • SVP and COO: Paul D. Hinnenkamp
  • EVP and CFO: Andrew S. Marsh
  • 2017 Employees: 13,504

Major Office Locations

  • New Orleans, LA

Other Locations

  • Blytheville, AR
  • El Dorado, AR
  • Forrest City, AR
  • Hot Springs, AR
  • Little Rock, AR
  • Malvern, AR
  • Newark, AR
  • Redfield, AR
  • Rockport, AR
  • Russellville, AR
  • Stamps, AR
  • Stuttgart, AR
  • Warren, AR
  • Wynne, AR
  • Washington, DC
  • Amite, LA
  • Baton Rouge, LA
  • Delhi, LA
  • Destrehan, LA
  • Dubach, LA
  • Gretna, LA
  • Hahnville, LA
  • Hammond, LA
  • Jefferson, LA
  • Killona, LA
  • La Place, LA
  • Lafayette, LA
  • Lake Charles, LA
  • Lockport, LA
  • Metairie, LA
  • Monroe, LA
  • Reserve, LA
  • Sterlington, LA
  • Vidalia, LA
  • West Monroe, LA
  • Westlake, LA
  • Westwego, LA
  • Winnsboro, LA
  • Zachary, LA
  • Plymouth, MA
  • Cleveland, MS
  • Gloster, MS
  • Greenville, MS
  • Indianola, MS
  • Jackson, MS
  • Port Gibson, MS
  • Senatobia, MS
  • Southaven, MS
  • Buchanan, NY
  • White Plains, NY
  • Johnston, RI
  • Austin, TX
  • Beaumont, TX
  • Houston, TX
  • Huntsville, TX
  • New Caney, TX
  • Orange, TX
  • Port Arthur, TX
  • Spring, TX
  • The Woodlands, TX
  • Willis, TX
  • Winnie, TX
  • Brattleboro, VT
  • Vernon, VT
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