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About Entergy Corporation

Entergy is into energy. The integrated utility holding company's subsidiaries distribute electricity to some 2.9 million customers in four southern states (Arkansas, Louisiana, Mississippi, and Texas) and provide natural gas to about 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 also one of the largest nuclear power generators in the US (nearly 9,000 MW). 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.

Operations

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

The Utility segment produces 85% 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 65% is from gas, oil, and hydroelectric sources, about 25% is from nuclear, and the rest comes from coal-fired plants.

Entergy Wholesale Commodities segment produces 15% of total revenue through its ownership and operation of nuclear power plants (nearly 4,200 MW of capacity) and fossil fuel plants (some 400 MW of capacity) and the sale of its electricity on the wholesale market. It also provides management services to Nebraska’s Cooper Nuclear Station (800 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 its headquarters in Louisiana. It provides power to customers in those states plus Texas. Entergy New Orleans distributes and transports natural gas within New Orleans and Louisiana through approximately 2,500 miles of gas pipeline.

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 about 700,000 customers in Arkansas, about 1.3 million in Louisiana, some 450,000 in Mississippi, and some 450,000 in Texas. It provides natural gas to about 100,000 customers in New Orleans and nearly another 100,000 throughout the rest of Louisiana. Entergy’s retail business (mostly through the regulated utility companies) generates some 40% of sales volume from industrial businesses, nearly 25% from commercial enterprises, more than 25% from residential, and the rest from government agencies, wholesale, and other customers.

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 sharp decreases in 2015 and 2016.

In 2017, revenue crept up 2% to $11 billion, thanks to $412 million addition in electric sales increases, offset by a 10% fall in competitive business segment sales. 

Net income improved from a loss of $565 million in 2016 to a profit of $425 million in 2017. The turnaround in performance was primarily due to a YOY reduction of $2.3 billion in special charges relating to asset write-offs. 

Cash holdings at the end of 2017 reduced to $781 million, from $1.2 billion the year prior. Operations generated a net inflow of $2.6 billion in cash, which was more than offset by $3.8 billion used in investing activities. Financial activities brought in a net cash inflow of $810 million, thanks to a net issuance of $1.4 billion in new debt.

Strategy

Entergy wants to expand its investments in regulated utility firms while winding down all its wholesale commodities businesses. The company plans to invest around $10 billion between 2017 and 2019 in utilities, almost half of it earmarked for distribution and transmission upgrades. Generation plants will get some 45% of the pot. 

The company recently completed the Ninemile 6 plant at the Union Power Station and received approval for work on its St. Charles, Lake Charles, and Montgomery County Power Stations. The company also joined the MISO transmission-sharing agreement to expand its own network. Finally, it is awaiting approval to build a new New Orleans Power Station.

Entergy’s Wholesale Commodities business has run into significant headwinds in recent years. The shale boom has resulted in nuclear power being pricier than plants running on shale-sourced natural gas. The New York state is also pressuring the company to decommission its Indian Point Energy Center by 2021. Other nuclear plants await similar fates.

Company Background

Entergy has had a colorful and varied start in the beginning of the 20th Century. Its roots can be traced back to Arkansas Power & Light (1913), New Orleans Public Service Inc (1922), Louisiana Power & Light, and Mississippi Power & Light (both formed in 1927). In 1949, these four companies, along with other utilities, were combined into a Maine holding company, Electric Power and Light. In 1949, after a small phase when the unified company was dissolved, a new holding company, Middle South Utilities, emerged that year to take over the four utilities' assets. In 1989, following a badly botched construction plan of two nuclear facilities (behind schedule and over budget)– whereby Middle South tried to pass on the costs to customers but eventually settled the disputes— the company changed its name to Entergy to distance itself from the controversy. 

Entergy Corporation

639 LOYOLA AVE
New Orleans, LA 70113-7106
Phone: 1 (504) 576-4000

Stats

Employer Type: Publicly Owned
Stock Symbol: ETR
Stock Exchange: , NYSE
Chairman and CEO: Leo P. Denault
SVP and COO: Paul D. Hinnenkamp
EVP and CFO: Andrew S. Marsh
Employees (This Location): 170
Employees (All Locations): 13,688

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
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
Lafayette, LA
Lake Charles, LA
La Place, LA
Metairie, LA
Monroe, LA
New Orleans, LA
Reserve, LA
Sterlington, LA
Vidalia, LA
Westlake, LA
West Monroe, 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
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