Entergy is into energy. The integrated utility holding company's subsidiaries distribute electricity to 2.8 million customers in four southern states (Arkansas, Louisiana, Mississippi, and Texas) and provide natural gas to 194,000 customers in Louisiana. Entergy operates 15,700 miles of high-voltage transmission lines and 1,300 transmission substations. In addition, the company has interests in regulated and nonregulated power plants in North America that have a combined generating capacity of about 30,000 MW. An advocate of nuclear power, Entergy is one of the largest nuclear power generators in the US.
Entergy performs operations across a 114,000 square mile area in Arkansas, Louisiana, Mississippi, and Texas.
The company's utility segment includes the generation, transmission, distribution, and sale of electric power in Arkansas, Mississippi, Texas, and Louisiana, including the City of New Orleans. It also operates a small natural gas distribution business. Entergy's wholesale commodities segment owns and operates six nuclear power plants (10,000 MW of capacity) in the northern US, and sells power from these plants (and from its interests in non-nuclear power plants) to wholesale customers. It also provides services to other nuclear power plant owners.
Entergy's major subsidiaries include Entergy Arkansas, Inc., Entergy Gulf States Louisiana, L.L.C., Entergy Louisiana LLC, Entergy Mississippi, Inc., Entergy New Orleans, Inc., Entergy Texas, Inc., Entergy Nuclear, Inc., Entergy Wholesale Commodities, Entergy Solutions District Cooling, LP, and Entergy Thermal, LLC.
Entergy's revenues declined by 8% in 2012 due to a 9% drop in utility revenues as the result of retail sales decreases from Entergy New Orleans and Entergy Gulf States Louisiana caused by lower rates. Wholesale commodities segment revenues decreased by 4% due to lower pricing in its contracts to sell power, and lower volume in its nuclear fleet resulting from higher unplanned and refueling outage days in 2012. This was partially offset by the exercise of resupply options (whereby Entergy Wholesale Commodities elected to supply power from another source when a plant was inactive).
The company reported net income of $846.7 million in 2012, a 37% drop on 2011 due to lower revenues and higher interest expenses.
Growing its non-nuclear power assets, in 2013 Entergy Gulf States Louisiana signed a deal with Sempra Energy’s Cameron LNG unit to supply up to 200 MW of additional power to the proposed Cameron LNG liquefaction project in Hackberry.
For better returns, in 2012 Entergy Arkansas, agreed to move to the Midwest Independent System Transmission Operator and reached an agreement with its Arkansas co-owners in coal generating plants regarding how the plants will operate after the move.
In a move to raise cash and to focus on its core utility and power generation businesses, in 2011 the company agreed to merge its electric transmission business into ITC Holdings to create a leading transmission enterprise with more than 30,000 miles of lines.
Earlier, Entergy had increased its generating capacity (to support its utilities and its marketing and trading operations) through domestic nuclear plant acquisitions and new plant construction. It received one of the first early site permits in the US (in 2007) from the US Nuclear Regulatory Commission for a possible new nuclear unit at the Grand Gulf site in Mississippi. It was also the first company to submit two combined Construction and Operating Licenses for new nuclear plants at two different sites -- at Grand Gulf and at River Bend Station near St. Francisville, Louisiana. However, the Japanese nuclear accident in 2011 forced the US nuclear industry to pause and take stock of its existing plants and future development plans.
Mergers and Acquisitions
Growing its traditional wholesale power portfolio, in 2012 Entergy Arkansas acquired the Hot Spring Energy Facility, a modern Arkansas power plant that will boost the utility’s generation capacity; Entergy Mississippi bought Hinds Energy Facility, a 450 MW natural gas-fired power plant located in Jackson, for $206 million.
In 2011 Entergy bought a 583-MW power plant located in Johnston, Rhode Island, from a unit of NextEra Energy, for about $346 million. It also bought Unit 2 of the Acadia Energy Center, a 580 MW generating plant in Louisiana, from an independent power producer for $300 million.