MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS

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


•The Utility business 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.
•The Entergy Wholesale Commodities business segment includes the ownership,
operation, and decommissioning of nuclear power plants located in the northern
United States and the sale of the electric power produced by its operating
plants to wholesale customers. Entergy Wholesale Commodities also provides
services to other nuclear power plant owners and owns interests in non-nuclear
power plants that sell the electric power produced by those plants to wholesale
customers. See "Entergy Wholesale Commodities Exit from the Merchant Power
Business" below and in the Form 10-K for discussion of the shutdown and sale of
each of the Entergy Wholesale Commodities nuclear power plants. With the sale of
Palisades in June 2022, Entergy completed its multi-year strategy to exit the
merchant nuclear power business.

See Note 7 to the financial statements herein for 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 2022 Compared to Second Quarter 2021


Following are income statement variances for Utility, Entergy Wholesale
Commodities, Parent & Other, and Entergy comparing the second quarter 2022 to
the second quarter 2021 showing how much the line item increased or (decreased)
in comparison to the prior period:

                                                                                  Entergy
                                                                                 Wholesale                Parent &
                                                         Utility                Commodities              Other (a)                Entergy
                                                                                          (In Thousands)
2021 Net Income (Loss) Attributable to
Entergy Corporation                                     $325,903                ($275,195)               ($56,682)                ($5,974)

Operating revenues                                       632,884                  (59,723)                    (35)                573,126
Fuel, fuel-related expenses, and gas
purchased for resale                                      18,570                    7,317                      (5)                 25,882
Purchased power                                          310,321                    7,930                       5                 318,256
Other regulatory charges (credits) - net                 816,201                        -                       -                 816,201
Other operation and maintenance                           34,446                  (40,848)                  2,999                  (3,403)
Asset write-offs, impairments, and related
charges (credits)                                              -                 (506,158)                      -                (506,158)
Taxes other than income taxes                             19,567                   (3,239)                      5                  16,333
Depreciation and amortization                             34,891                  (11,172)                   (505)                 23,214

Other income (deductions)                                 (5,315)                 (59,299)                (10,647)                (75,261)
Interest expense                                          10,621                   (2,288)                  5,152                  13,485
Other expenses                                              (596)                 (29,527)                      -                 (30,123)
Income taxes                                            (443,064)                  96,929                   4,908                (341,227)
Preferred dividend requirements of
subsidiaries and noncontrolling interest                    (224)                       -                     (48)                   (272)

2022 Net Income (Loss) Attributable to
Entergy Corporation                                     $152,739                  $86,839                ($79,875)               $159,703


(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, 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 in recognition of obligations related to an LPSC ancillary order
issued as part of the securitization regulatory proceeding; and 3) a gain of
$166 million ($130 million net-of-tax) as a result of the sale of the Palisades
plant in June 2022. See Note 2 to the financial statements herein for further
discussion of the System Energy partial settlement agreement and offer of
settlement. See Notes 2 and 10 to the financial statements herein for further
discussion of the securitization. See Note 14 to the financial statements herein
for further discussion of the sale of the Palisades plant.

Second quarter 2021 results of operations include a charge of $340 million ($268
million net-of-tax) as a result of the sale of the Indian Point Energy Center in
May 2021. See Note 14 to the financial statements in the Form 10-K for further
discussion of the sale of the Indian Point Energy Center.
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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 2022 to the second quarter 2021:

                                                                                 Amount
                                                                              (In Millions)
2021 operating revenues                                                                $2,673

Fuel, rider, and other revenues that do not significantly affect net income

                                                                                    376
Volume/weather                                                                            140
Storm restoration carrying costs                                                           59
Retail electric price                                                                      58
2022 operating revenues                                                                $3,306



The Utility operating companies' results include revenues from rate mechanisms
designed to recover fuel, purchased power, and other costs such that the
revenues and expenses associated with these items generally offset and do not
affect net income. "Fuel, rider, and other revenues that do not significantly
affect net income" includes the revenue variance associated with these items.

The volume/weather variance is primarily due to an increase of 2,343 GWh, or 8%,
in electricity usage across all customer classes, including the effect of more
favorable weather on residential and commercial sales. The increase in
industrial usage was due to an increase in demand from expansion projects,
primarily in the chemicals, transportation, and petroleum refining industries,
an increase in demand from cogeneration customers, and an increase in demand
from existing customers, primarily in the chemicals and pulp and paper
industries as a result of prior year temporary plant shutdowns. The increase in
weather-adjusted commercial usage was primarily due to the effect of the
COVID-19 pandemic on businesses in second quarter 2021.

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 herein for discussion of storm cost securitizations.

The retail electric price variance is primarily due to:


•an increase in Entergy Arkansas's formula rate plan rates effective January
2022;
•an increase in Entergy Louisiana's formula rate plan revenues, including
increases in the distribution and transmission recovery mechanisms, effective
September 2021;
•increases in Entergy Mississippi's formula rate plan rates effective July 2021
and April 2022;
•an increase in Entergy New Orleans's formula rate plan rates effective November
2021; and
•an increase in the transmission cost recovery factor rider effective March 2022
and an increase in the distribution cost recovery factor rider effective January
2022, each at Entergy Texas.

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

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Entergy Corporation and Subsidiaries
Management's Financial Discussion and Analysis

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

                                         2022         2021        % Change
                                               (GWh)
                    Residential          9,493        8,487          12
                    Commercial           7,203        6,731           7
                    Industrial          13,480       12,640           7
                    Governmental           641          616           4
                    Total retail        30,817       28,474           8
                    Sales for resale     3,920        4,716         (17)
                    Total               34,737       33,190           5


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

Entergy Wholesale Commodities


Operating revenues for Entergy Wholesale Commodities decreased from $149 million
for the second quarter 2021 to $89 million for the second quarter 2022 primarily
due to the shutdown of Palisades in May 2022 and Indian Point 3 in April 2021
and lower realized wholesale energy and capacity prices including the effect of
the additional PPA entered into with Consumers Energy covering the period from
April 2022 to final shutdown in May 2022 at a lower rate than the original PPA.
See Note 19 to the financial statements in the Form 10-K for further discussion
of the Palisades PPA.

Following are key performance measures for Entergy Wholesale Commodities for the second quarters 2022 and 2021:

                                                               2022        2021
          Owned capacity (MW) (a)                              394        1,205
          GWh billed                                          1,371       2,687

          Entergy Wholesale Commodities Nuclear Fleet (b)
          Capacity factor                                      81%         94%
          GWh billed                                           975        2,356
          Average energy price ($/MWh)                        $30.50      $48.75
          Average capacity price ($/kW-month)                 $0.15       $0.32


(a)The reduction in owned capacity is due to the shutdown of the 811 MW Palisades plant in May 2022. (B)The Entergy Wholesale Commodities nuclear power plants had no refueling outage days in the second quarters 2022 and 2021.

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                                            Entergy Corporation and Subsidiaries
                                  Management's Financial Discussion and Analysis
Other Income Statement Items

Utility

Other operation and maintenance expenses increased from $691 million for the
second quarter 2021 to $726 million for the second quarter 2022 primarily due
to:

•an increase of $10 million in power delivery expenses primarily due to higher
reliability costs and higher safety and training costs, partially offset by a
decrease in meter reading expenses as a result of the deployment of advanced
metering systems;
•an increase of $6 million in energy efficiency expenses due to the timing of
recovery from customers and higher energy efficiency costs;
•an increase of $5 million in customer service center support costs primarily
due to higher contract costs;
•an increase of $5 million in bad debt expense primarily due to the deferral in
2021 of bad debt expense resulting from the COVID-19 pandemic. See Note 2 to the
financial statements herein and in the Form 10-K for further discussion of
regulatory activity associated with the COVID-19 pandemic; and
•an increase of $2 million in loss provisions.

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

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

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 in
recognition of obligations related to 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 herein for discussion of the storm cost securitization;
•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 herein for discussion of the partial settlement
agreement and offer of settlement; and
•regulatory credits of $20 million, recorded in second quarter 2021 at Entergy
Mississippi, to reflect the effects of the joint stipulation reached in the 2021
formula rate plan filing proceeding. See Note 2 to the financial statements in
the Form 10-K for discussion of the 2021 formula rate plan filing.

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 decreased primarily due to a $32 million charge at Entergy
Louisiana for the LURC's 1% beneficial interest in the storm trust established
as part of the Hurricane Laura, Hurricane Delta, Hurricane Zeta, Winter Storm
Uri, and Hurricane Ida securitization. This decrease was partially offset by:

•an increase of $11 million in intercompany dividend income resulting from the
Entergy Louisiana storm trust's investment of securitization proceeds in
affiliated preferred membership interests, partially offset by the liquidation
of Entergy Louisiana's investment in affiliated preferred membership interests
acquired in connection with previous securitizations of storm restoration costs;
•a decrease of $8 million in non-service pension costs; and

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Management's Financial Discussion and Analysis

•an increase of $6 million due to the recognition of storm restoration carrying costs, primarily related to Hurricane Ida.

See Note 2 to the financial statements herein for discussion of the securitization.

Interest expense increased primarily due to:


•the issuance by Entergy Arkansas of $200 million of 4.20% Series mortgage bonds
in March 2022;
•the issuance by Entergy Louisiana of $1 billion of 0.95% Series mortgage bonds
in October 2021;
•the $1.2 billion unsecured term loan proceeds received by Entergy Louisiana in
January 2022;
•the issuance by Entergy Mississippi of $200 million of 2.55% Series mortgage
bonds in November 2021; and
•the issuances by Entergy New Orleans of $90 million of 4.19% Series mortgage
bonds and $70 million of 4.51% Series mortgage bonds, each in November 2021.

Entergy Wholesale Commodities


Other operation and maintenance expenses decreased from $83 million for the
second quarter 2021 to $42 million for the second quarter 2022 primarily due to
a decrease of $44 million resulting from the absence of expenses from Indian
Point 3, after it was shut down in April 2021, and Palisades, after it was shut
down in May 2022. The decrease was partially offset by an increase of $5 million
in severance and retention expenses. Severance and retention expense was a $1
million credit in the second quarter 2022 as compared to a $6 million credit in
the second quarter 2021, with the credits related to revisions of the estimated
remaining severance and retention costs upon the sales of Palisades and Indian
Point Energy Center. See "Entergy Wholesale Commodities Exit from the Merchant
Power Business" below and in the Form 10-K for a discussion of management's
strategy to shut down and sell all plants in Entergy Wholesale Commodities'
merchant nuclear fleet. See Note 7 to the financial statements herein for
further discussion of severance and retention expenses.

Asset write-offs, impairments, and related charges (credits) for the second
quarter 2022 include a gain of $166 million ($130 million net-of-tax) as a
result of the sale of the Palisades plant in June 2022. Asset write-offs,
impairments, and related charges (credits) for the second quarter 2021 include a
charge of $340 million ($268 million net-of-tax) as a result of the sale of the
Indian Point Energy Center in May 2021. See Note 14 to the financial statements
herein for further discussion of the sale of the Palisades plant. See Note 14 to
the financial statements in the Form 10-K for further discussion of the sale of
the Indian Point Energy Center. See "Entergy Wholesale Commodities Exit from the
Merchant Power Business" below and in the Form 10-K for a discussion of
management's strategy to shut down and sell all of the plants in the Entergy
Wholesale Commodities merchant nuclear fleet.

Depreciation and amortization expenses decreased primarily due to the absence of
depreciation expense from Palisades, after it was shut down in May 2022, and
Indian Point 3, after it was shut down in April 2021.

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


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                                  Management's Financial Discussion and Analysis
Other expenses decreased primarily due to the absence of decommissioning expense
from Indian Point 2 and Indian Point 3, after the sale of the Indian Point
Energy Center in May 2021. See Note 14 to the financial statements in the Form
10-K for further discussion of the sale of the Indian Point Energy Center.

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 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 10 to the
financial statements herein for further discussion of the Entergy Louisiana
securitization. See Note 2 to the financial statements herein for discussion of
the System Energy settlement agreement.

The effective income tax rate was 93% for the second quarter 2021. The
difference in the effective income tax rate for the second quarter 2021 versus
the federal statutory rate of 21% was primarily due to the amortization of
excess accumulated deferred income taxes, a reduction of a valuation allowance,
certain book and tax differences related to utility plant items, and book and
tax differences related to the allowance for equity funds used during
construction, partially offset by state income taxes. 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 and regulatory activity regarding the
Tax Cuts and Jobs Act. See Note 3 to the financial statements in the Form 10-K
for discussion of the valuation allowance reduction.


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Entergy Corporation and Subsidiaries
Management's Financial Discussion and Analysis

Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021

Following are income statement variances for Utility, Entergy Wholesale CommoditiesParent & Other, and Entergy comparing the six months ended June 30, 2022 to the six months ended June 30, 2021 showing how much the line item increased or (decreased) in comparison to the prior period:

                                                                                  Entergy
                                                                                 Wholesale                Parent &
                                                         Utility                Commodities              Other (a)                Entergy
                                                                                          (In Thousands)
2021 Net Income (Loss) Attributable to
Entergy Corporation                                     $682,470                ($237,619)              ($116,260)               $328,591

Operating revenues                                       764,425                 (158,163)                    (47)                606,215
Fuel, fuel-related expenses, and gas
purchased for resale                                     179,494                   12,153                       7                 191,654
Purchased power                                          204,383                    3,770                      (7)                208,146
Other regulatory charges (credits) - net                 755,497                        -                       -                 755,497
Other operation and maintenance                           60,656                  (98,570)                  6,539                 (31,375)
Asset write-offs, impairments, and related
charges (credits)                                              -                 (508,686)                      -                (508,686)
Taxes other than income taxes                             39,911                     (170)                     38                  39,779
Depreciation and amortization                             64,013                  (15,392)                   (954)                 47,667

Other income (deductions)                                (51,580)                (106,607)                (12,480)               (170,667)
Interest expense                                          26,062                   (5,315)                 14,390                  35,137
Other expenses                                             1,101                  (68,555)                      -                 (67,454)
Income taxes                                            (427,440)                  84,224                   2,545                (340,671)
Preferred dividend requirements of
subsidiaries and noncontrolling interest                  (1,563)                       1                     (96)                 (1,658)

2022 Net Income (Loss) Attributable to
Entergy Corporation                                     $493,201                  $94,151               ($151,249)               $436,103


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


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 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 in recognition of obligations
related to an LPSC ancillary order issued as part of the securitization
regulatory proceeding; and 3) a gain of $166 million ($130 million net-of-tax)
as a result of the sale of the Palisades plant in June 2022. See Note 2 to the
financial statements herein for further discussion of the System Energy partial
settlement agreement and offer of settlement. See Notes 2 and 10 to the
financial statements herein for further discussion of the securitization. See
Note 14 to the financial statements herein for further discussion of the sale of
the Palisades plant.

Results of operations for the six months ended June 30, 2021 include a charge of
$340 million ($268 million net-of-tax) as a result of the sale of the Indian
Point Energy Center in May 2021. See Note 14 to the financial statements in the
Form 10-K for further discussion of the sale of Indian Point Energy Center.


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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 six months ended June 30, 2022 to the six months ended June 30, 2021:

                                                                                 Amount
                                                                              (In Millions)
2021 operating revenues                                                                $5,270
Fuel, rider, and other revenues that do not significantly affect net
income                                                                                    409
Retail electric price                                                                     149
Volume/weather                                                                            126
Storm restoration carrying costs                                                           59
Return of unprotected excess accumulated deferred income taxes to
customers                                                                                  21
2022 operating revenues                                                                $6,034



The Utility operating companies' results include revenues from rate mechanisms
designed to recover fuel, purchased power, and other costs such that the
revenues and expenses associated with these items generally offset and do not
affect net income. "Fuel, rider, and other revenues that do not significantly
affect net income" includes the revenue variance associated with these items.

The retail electric price variance is primarily due to:


•increases in Entergy Arkansas's formula rate plan rates effective May 2021 and
January 2022;
•an increase in Entergy Louisiana's formula rate plan revenues, including
increases in the distribution and transmission recovery mechanisms, effective
September 2021;
•increases in Entergy Mississippi's formula rate plan rates effective April
2021, July 2021, and April 2022;
•an increase in Entergy New Orleans's formula rate plan rates effective November
2021; and
•increases in the transmission cost recovery factor rider effective March 2021
and March 2022, an increase in the distribution cost recovery factor rider
effective January 2022, and an increase in the generation cost recovery rider
effective in late January 2021, each at Entergy Texas.

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


The volume/weather variance is primarily due to an increase of 3,055 GWh, or 5%,
in electricity usage across all customer classes, including the effect of more
favorable weather on residential and commercial sales. The increase in
industrial usage was due to an increase in demand from cogeneration customers,
an increase in demand from expansion projects, primarily in the chemicals,
transportation, and petroleum refining industries, an increase in demand from
existing customers, primarily in the chemicals and pulp and paper industries as
a result of prior year temporary plant shutdowns, and an increase in demand from
small industrial customers. The increase in weather-adjusted commercial usage
was primarily due to an increase in customers and the effect of the COVID-19
pandemic on businesses in 2021. The increased usage from these industrial and
commercial customers has a relatively smaller effect on operating revenues
because a larger portion of the revenues from those customers comes from fixed
charges.

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,

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Management's Financial Discussion and Analysis

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 herein for discussion of 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 as compared to $54 million in the six months
ended June 30, 2021. There is no effect on net income as the reductions in
operating revenues were offset by reductions in income tax expense. See Note 2
to the financial statements in the Form 10-K for further discussion of
regulatory activity regarding the Tax Cuts and Jobs Act.

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

                                         2022          2021        % Change
                                               (GWh)
                   Residential          17,946        17,150           5
                   Commercial           13,474        12,842           5
                   Industrial           25,976        24,378           7
                   Governmental          1,226         1,197           2
                   Total retail         58,622        55,567           5
                   Sales for resale      7,562         9,016         (16)
                   Total                66,184        64,583           2


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

Entergy Wholesale Commodities


Operating revenues for Entergy Wholesale Commodities decreased from $397 million
for the six months ended June 30, 2021 to $239 million for the six months ended
June 30, 2022 primarily due to the shutdown of Indian Point 3 in April 2021 and
Palisades in May 2022.

Following are key performance measures for Entergy Wholesale Commodities for the six months ended June 30, 2022 and 2021:

                                                               2022        2021
          Owned capacity (MW) (a)                              394        1,205
          GWh billed                                          3,595       7,099

          Entergy Wholesale Commodities Nuclear Fleet (b)
          Capacity factor                                      93%         97%
          GWh billed                                          2,741       6,344
          Average energy price ($/MWh)                        $48.99      $50.70
          Average capacity price ($/kW-month)                 $0.15       $0.26


(a)The reduction in owned capacity is due to the shutdown of the 811 MW Palisades plant in May 2022. (B)The Entergy Wholesale Commodities nuclear power plants had no refueling outage days in the six months ended June 30, 2022 and 2021.

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                                  Management's Financial Discussion and Analysis

Other Income Statement Items

Utility

Other operation and maintenance expenses increased from $1,294 million for the
six months ended June 30, 2021 to $1,354 million for the six months ended June
30, 2022 primarily due to:

•an increase of $18 million in power delivery expenses primarily due to higher
reliability costs and higher safety and training costs, partially offset by a
decrease in meter reading expenses as a result of the deployment of advanced
metering systems;
•an increase of $11 million in customer service center support costs primarily
due to higher contract costs;
•an increase of $6 million in nuclear generation expenses primarily due to a
higher scope of work performed in 2022 as compared to prior year, partially
offset by lower spending in 2022 on sanitation and social distancing protocols
as a result of the COVID-19 pandemic;
•an increase of $5 million in legal expenses primarily due to an increase in
legal and regulatory activity increasing the use of outside legal services;
•an increase of $4 million in non-nuclear generation expenses primarily due to
higher expenses associated with the Hardin County Peaking Facility, which was
purchased in June 2021;
•an increase of $4 million in energy efficiency expenses due to the timing of
recovery from customers and higher energy efficiency costs;
•an increase of $4 million in loss provisions; and
•several individually insignificant items.

The increase was partially offset by a decrease of $5 million in insurance expenses primarily due to higher nuclear insurance refunds received in 2022, partially offset by higher premium costs.

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

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

Other regulatory charges (credits) – net includes:


•the reversal in first quarter 2021 of the remaining $39 million regulatory
liability for Entergy Arkansas's 2019 historical year netting adjustment as part
of its 2020 formula rate plan proceeding. See Note 2 to the financial statements
in the Form 10-K for discussion of the 2020 formula rate plan filing;
•a regulatory charge of $224 million, recorded by Entergy Louisiana in second
quarter 2022, to reflect its obligation to provide credits to its customers in
recognition of obligations related to 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 herein for discussion of the 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 herein for discussion of the partial settlement
agreement and offer of settlement.

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.


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Management's Financial Discussion and Analysis

Other income decreased primarily due to:


•changes in decommissioning trust fund activity, including portfolio rebalancing
of the decommissioning trust funds in 2022 and 2021; and
•a $32 million charge at Entergy Louisiana for the LURC's 1% beneficial interest
in the storm trust established as part of the Hurricane Laura, Hurricane Delta,
Hurricane Zeta, Winter Storm Uri, and Hurricane Ida securitization.

This decrease was partially offset by:


•an increase of $11 million in intercompany dividend income resulting from the
Entergy Louisiana storm trust's investment of securitization proceeds in
affiliated preferred membership interests, partially offset by the liquidation
of Entergy Louisiana's investment in affiliated preferred membership interests
acquired in connection with previous securitizations of storm restoration costs;
•an increase of $11 million due to the recognition of storm restoration carrying
costs, primarily related to Hurricane Ida; and
•a decrease of $8 million in non-service pension costs.

See Note 2 to the financial statements herein for discussion of the securitization.

Interest expense increased primarily due to:


•the issuance by Entergy Arkansas of $400 million of 3.35% Series mortgage bonds
in March 2021;
•the issuance by Entergy Arkansas of $200 million of 4.20% Series mortgage bonds
in March 2022;
•the issuances by Entergy Louisiana of $500 million of 2.35% Series mortgage
bonds and $500 million of 3.10% Series mortgage bonds, each in March 2021;
•the issuance by Entergy Louisiana of $1 billion of 0.95% Series mortgage bonds
in October 2021;
•the $1.2 billion unsecured term loan proceeds received by Entergy Louisiana in
January 2022;
•the issuance by Entergy Mississippi of $200 million of 3.50% Series mortgage
bonds in March 2021;
•the issuance by Entergy Mississippi of $200 million of 2.55% Series mortgage
bonds in November 2021; and
•the issuances by Entergy New Orleans of $90 million of 4.19% Series mortgage
bonds and $70 million of 4.51% Series mortgage bonds, each in November 2021.

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

Entergy Wholesale Commodities


Other operation and maintenance expenses decreased from $182 million for the six
months ended June 30, 2021 to $84 million for the six months ended June 30, 2022
primarily due to a decrease of $87 million resulting from the absence of
expenses from Indian Point 3, after it was shut down in April 2021, and
Palisades, after it was shut down in May 2022, and a decrease of $5 million in
severance and retention expenses. Severance and retention expenses were incurred
in 2022 and 2021 due to management's strategy to exit the Entergy Wholesale
Commodities merchant power business. See "Entergy Wholesale Commodities Exit
from the Merchant Power Business" below and in the Form 10-K for a discussion of
management's strategy to shut down and sell all plants in Entergy Wholesale
Commodities' merchant nuclear fleet. See Note 7 to the financial statements
herein for further discussion of severance and retention expenses.

Asset write-offs, impairments, and related charges (credits) for the six months
ended June 30, 2022 include a gain of $166 million ($130 million net-of-tax) as
a result of the sale of the Palisades plant in June 2022. Asset

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write-offs, impairments, and related charges (credits) for the six months ended
June 30, 2021 include a charge of $340 million ($268 million net-of-tax) as a
result of the sale of the Indian Point Energy Center in May 2021. See Note 14 to
the financial statements herein for further discussion of the sale of the
Palisades plant. See Note 14 to the financial statements in the Form 10-K for
further discussion of the sale of the Indian Point Energy Center. See "Entergy
Wholesale Commodities Exit from the Merchant Power Business" below and in the
Form 10-K for a discussion of management's strategy to shut down and sell all of
the plants in the Entergy Wholesale Commodities merchant nuclear fleet.

Depreciation and amortization expenses decreased primarily due to the absence of
depreciation expense from Indian Point 3, after it was shut down in April 2021,
and Palisades, after it was shut down in May 2022. The decrease was partially
offset by the effect of recording in 2021 a final judgment to resolve claims in
the Palisades damages case against the DOE related to spent nuclear fuel storage
costs. The damages awarded included $9 million of spent nuclear fuel storage
costs previously recorded as depreciation expense. See Note 8 to the financial
statements in the Form 10-K for discussion of the spent nuclear fuel litigation.

Other income decreased primarily due to the absence of earnings from the nuclear
decommissioning trust funds that were transferred in the sale of the Indian
Point Energy Center in May 2021 and losses on Palisades decommissioning trust
fund investments in the six months ended June 30, 2022 compared to the six
months ended June 30, 2021, partially offset by lower non-service pension costs.
See Notes 8 and 9 to the financial statements herein for a discussion of
decommissioning trust fund investments. See Note 14 to the financial statements
in the Form 10-K for further discussion of the sale of the Indian Point Energy
Center. See Note 6 to the financial statements herein for a discussion of
pension and other postretirement benefits costs.

Other expenses decreased primarily due to the absence of decommissioning expense
from Indian Point 2 and Indian Point 3, after the sale of the Indian Point
Energy Center in May 2021. See Note 14 to the financial statements in the Form
10-K for further discussion of the sale of the Indian Point Energy Center.

Income Taxes


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 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 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 and regulatory activity regarding the Tax Cuts and Jobs Act. See Notes 2
and 10 to the financial statements herein for further discussion of the Entergy
Louisiana securitization.

The effective income tax rate was 12.3% for the six months ended June 30, 2021.
The difference in the effective income tax rate for the six months ended June
30, 2021 versus the federal statutory rate of 21% was primarily due to the
amortization of excess accumulated deferred income taxes, a reduction of a
valuation allowance, certain book and tax differences related to utility plant
items, and book and tax differences related to the allowance for equity funds
used during construction, partially offset by state income taxes. 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 and regulatory activity regarding
the Tax Cuts and Jobs Act. See Note 3 to the financial statements in the Form
10-K for discussion of the valuation allowance reduction.

Entergy Wholesale Commodities Exit from the Merchant Power Business

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Entergy Wholesale Commodities Exit from the Merchant Power Business” in the Form 10-K for a discussion of management’s

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strategy to shut down and sell all plants in the Entergy Wholesale Commodities
nuclear merchant fleet. Following are updates to that discussion.


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

Shutdown and Sale of Palisades


As discussed in the Form 10-K, in July 2018, Entergy entered into a purchase and
sale agreement to sell 100% of the equity interests in the subsidiary that owns
Palisades and the Big Rock Point Site, for $1,000 (subject to adjustment for net
liabilities and other amounts) to a Holtec subsidiary. Palisades was shut down
in May 2022 and defueled in June 2022. The transaction closed in June 2022. The
sale included the transfer of the nuclear decommissioning trust and the asset
retirement obligation for spent fuel management and plant decommissioning. The
transaction resulted in a gain of $166 million ($130 million net-of-tax) in the
second quarter of 2022. See Note 14 to the financial statements herein for
further discussion of the sale of the Palisades plant. In December 2020, Entergy
and Holtec submitted a license transfer application to the NRC requesting
approval to transfer the Palisades and Big Rock Point licenses from Entergy to
Holtec. In February 2021 several parties, including the Michigan Attorney
General, filed with the NRC petitions to intervene and requests for hearing
challenging the license transfer application, and these petitions and requests
for hearing remained pending with the NRC at the time of the closing of the
Palisades transaction. In July 2022 the NRC issued an order granting the
Michigan Attorney General's petition hearing request.

Liquidity and Capital Resources

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS – Liquidity and Capital Resources” in 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. The decrease in
the debt to capital ratio for Entergy as of June 30, 2022 is primarily due to
the net retirement of debt in 2022.

                                                                   June 30,                     December 31,
                                                                     2022                           2021
Debt to capital                                                           69.1  %                          69.5  %
Effect of excluding securitization bonds                                  (0.3  %)                         (0.1  %)
Debt to capital, excluding securitization bonds (a)                       68.8  %                          69.4  %
Effect of subtracting cash                                                (0.4  %)                         (0.3  %)
Net debt to net capital, excluding securitization bonds (a)               68.4  %                          69.1  %



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


As of June 30, 2022, 20.6% of the debt outstanding is at the parent company,
Entergy Corporation, 78.9% is at the Utility, and 0.5% is at Entergy Wholesale
Commodities. Net debt consists of debt less cash and cash equivalents. Debt
consists of notes payable and commercial paper, finance lease obligations, and
long-term debt, including the currently maturing portion. Capital consists of
debt, common shareholders' equity, and subsidiaries' preferred stock without
sinking fund. Net capital consists of capital less cash and cash
equivalents. Entergy uses the debt to capital ratios excluding securitization
bonds in analyzing its financial condition and believes they provide useful
information to its investors and creditors in evaluating Entergy's financial
condition because the securitization bonds are non-recourse to Entergy, as more
fully described in Note 5 to the financial statements in the

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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 2027. The facility includes fronting
commitments for the issuance of letters of credit against $20 million of the
total borrowing capacity of the credit facility. The commitment fee is currently
0.225% of the undrawn commitment amount. Commitment fees and interest rates on
loans under the credit facility can fluctuate depending on the senior unsecured
debt ratings of Entergy Corporation. The weighted average interest rate for the
six months ended June 30, 2022 was 1.96% on the drawn portion of the facility.
As of June 30, 2022, amounts outstanding and capacity available under the $3.5
billion credit facility are:

                                                       Letters       Capacity
                     Capacity        Borrowings       of Credit      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 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 Utility operating companies (except
Entergy New Orleans) defaults on other indebtedness or is in bankruptcy or
insolvency proceedings, an acceleration of the Entergy Corporation credit
facility's maturity date may occur. See Note 4 to the financial statements
herein for additional discussion of the Entergy Corporation credit facility and
discussion of the Utility operating companies' credit facilities.

Entergy Corporation has a commercial paper program with a Board-approved program
limit of up to $2 billion. As of June 30, 2022, Entergy Corporation had $1.398
billion of commercial paper outstanding. The weighted-average interest rate for
the six months ended June 30, 2022 was 0.91%.

Entergy Louisiana had $290 million and Entergy Mississippi had $33 million in their storm reserve escrow accounts at June 30, 2022.


In February 2022, Entergy New Orleans filed with the City Council a
securitization application requesting that the City Council review Entergy New
Orleans's storm reserve and increase the storm reserve funding level to $150
million, to be funded through securitization. A City Council decision is
expected in third quarter 2022.

Equity Issuances and Equity Distribution Program


As discussed in the Form 10-K, in January 2021, Entergy entered into an equity
distribution sales agreement with several counterparties establishing an at the
market equity distribution program, pursuant to which Entergy may offer and sell
from time to time shares of its common stock. The sales agreement provides that,
in addition to the issuance and sale of shares of Entergy common stock, Entergy
may also enter into forward sale agreements for the sale of its common stock.
Initially, the aggregate number of shares of common stock sold under this sales
agreement and under any forward sale agreement could not exceed an aggregate
gross sales price of $1 billion. In May 2022, Entergy increased by $1 billion
the aggregate gross sales price authorized under the at the market equity
distribution program. Through June 30, 2022, Entergy has utilized the equity
distribution program either to sell or to enter into forward sale agreements
with respect to shares of common stock with an aggregate gross sales price of
approximately $880 million, of which approximately $680 million of aggregate
gross sales price is the subject of forward sale agreements that have not been
settled and is subject to adjustment pursuant to the forward sale

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agreements. In addition to settlement of existing forward sale agreements,
Entergy Corporation currently expects to issue approximately $320 million of
equity through 2024. See Note 3 to the financial statements herein for
discussion of the forward sale agreements and common stock issuances and sales
under the equity distribution program.

Hurricane Laura, hurricane deltaHurricane 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 April 2021, Entergy Louisiana filed an application with the LPSC relating to
Hurricane Laura, Hurricane Delta, Hurricane Zeta, and Winter Storm Uri
restoration costs and in July 2021, Entergy Louisiana made a supplemental filing
updating the total restoration costs. Total restoration costs for the repair
and/or replacement of Entergy Louisiana's electric facilities damaged by these
storms were estimated to be approximately $2.06 billion, including approximately
$1.68 billion in capital costs and approximately $380 million in non-capital
costs. Including carrying costs through January 2022, Entergy Louisiana sought
an LPSC determination that $2.11 billion was prudently incurred and, therefore,
was eligible for recovery from customers. Additionally, Entergy Louisiana
requested that the LPSC determine that re-establishment of a storm escrow
account to the previously authorized amount of $290 million was appropriate. In
July 2021, 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 August 2021, Hurricane Ida caused extensive damage to Entergy Louisiana's
distribution and, to a lesser extent, transmission systems resulting in
widespread power outages. In September 2021, Entergy Louisiana filed an
application at the LPSC seeking approval of certain ratemaking adjustments in
connection with the issuance of approximately $1 billion of shorter-term
mortgage bonds to provide interim financing for restoration costs associated
with Hurricane Ida, which bonds were issued in October 2021. Also in September
2021, Entergy Louisiana sought approval for the creation and funding of a $1
billion restricted escrow account for Hurricane Ida restoration costs, subject
to a subsequent prudence review.

After filing of testimony by LPSC staff and intervenors, which generally
supported or did not oppose Entergy Louisiana's requests in regard to Hurricane
Laura, Hurricane Delta, Hurricane Zeta, Winter Storm Uri, and Hurricane Ida, the
parties negotiated and executed an uncontested stipulated settlement which was
filed with the LPSC in February 2022. The settlement agreement contained the
following key terms: $2.1 billion of restoration costs from Hurricane Laura,
Hurricane Delta, Hurricane Zeta, and Winter Storm Uri were prudently incurred
and were eligible for recovery; carrying costs of $51 million were recoverable;
a $290 million cash storm reserve should be re-established; a $1 billion reserve
should be established to partially pay for Hurricane Ida restoration costs; and
Entergy Louisiana was authorized to finance $3.186 billion utilizing the
securitization process authorized by Act 55, as supplemented by Act 293. The
LPSC issued an order approving the settlement in March 2022. As a result of the
financing order, Entergy Louisiana reclassified $1.942 billion from utility
plant to other regulatory assets.

in May 2022 the securitization financing closed, resulting in the guarantee of
$3,194 billion main amount of bonds by Louisiana Local Government Environmental Facilities and Community Development Authority

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(LCDA), a political subdivision of the State of Louisiana. 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 approved in 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 I (the storm trust).

Pursuant to Act 293, the net proceeds of the bonds were used by the storm trust
to purchase 31,635,718.7221 Class A preferred, non-voting membership interest
units (the preferred 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,
2022 on the preferred interests issued to the storm trust. These annual
dividends received by the storm trust will be distributed to Entergy Louisiana
and the LURC, as beneficiaries of the storm trust. Specifically, 1% of the
annual dividends received by the storm trust 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 interests have a stated annual
cumulative cash dividend rate of 7% and a liquidation price of $100 per unit.
The terms of the preferred interests include certain financial covenants to
which Entergy Finance Company is subject.

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 June 2022 and the system
restoration charge is expected to remain in place 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 is required to liquidate Entergy Finance Company preferred
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 distributed $1.4 billion to its parent, Entergy Holdings
Company, LLC. Subsequently, Entergy Holdings Company liquidated, distributing
the $1.4 billion it received from Entergy Finance Company to Entergy Louisiana
as holder of 6,843,780.24 units of Class A, 4,126,940.15 units of Class B, and
2,935,152.69 units of Class C preferred membership interests. Entergy Louisiana
had acquired these preferred membership interests with proceeds from previous
securitizations of storm restoration costs. Entergy Finance Company loaned the
remaining $1.7 billion from the preferred membership interests proceeds to
Entergy which used the cash to redeem $650 million of 4.00% Series senior notes
due July 2022 and indirectly contributed $1 billion to Entergy Louisiana as a
capital contribution.

Entergy Louisiana used the $1 billion capital contribution to fund its Hurricane
Ida escrow account and subsequently withdrew the $1 billion from the escrow
account. With a portion of the $1 billion withdrawn from the escrow account and
the $1.4 billion from the Entergy Holdings Company liquidation, Entergy
Louisiana deposited $290 million in a restricted escrow account as a storm
damage reserve for future storms, used $1.2 billion to repay its unsecured term
loan due June 2023, and used $435 million to redeem a portion of its 0.62%
Series mortgage bonds due November 2023.

As discussed in Note 10 to the financial statements herein, the securitization
resulted in recognition of a reduction of income tax expense of approximately
$290 million 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 $283 million. In recognition of obligations related to an LPSC
ancillary order issued as part of the securitization

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regulatory proceeding, Entergy Louisiana recorded a $224 million ($165 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 12 to the financial statements herein, Entergy Louisiana
consolidates the storm trust as a variable interest entity and the LURC's 1%
beneficial interest is shown as noncontrolling interest in the financial
statements. In second quarter 2022, Entergy Louisiana recorded a charge of $31.6
million in other income to reflect the LURC's beneficial interest in the trust.

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
currently are 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 is seeking an LPSC determination that $2.60 billion was
prudently incurred and, therefore, is eligible for recovery from customers. As
part of this filing, Entergy Louisiana also is 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 is exclusive of the requested $3 million in carrying costs through
December 2022. In total, Entergy Louisiana is requesting an LPSC determination
that $2.64 billion was prudently incurred and, therefore, is eligible for
recovery from customers. As discussed above, 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. A procedural schedule has been
established with a hearing in December 2022.

Hurricane Ida (Entergy New Orleans)


As discussed in the Form 10-K, in August 2021, Hurricane Ida caused significant
damage to Entergy New Orleans's service area, including Entergy's electrical
grid. The storm resulted in widespread power outages, including the loss of 100%
of Entergy New Orleans's load and damage to distribution and transmission
infrastructure, including the loss of connectivity to the eastern
interconnection. In September 2021, Entergy New Orleans withdrew $39 million
from its funded storm reserves. In June 2022, Entergy New Orleans filed an
application with the City Council requesting approval and certification that
storm restoration costs associated with Hurricane Ida of approximately
$170 million were reasonable, necessary, and prudently incurred to enable
Entergy New Orleans to restore electric service to its customers and to repair
Entergy New Orleans's electric utility infrastructure. Carrying costs through
December 2022 related to Hurricane Ida restoration costs were $9 million.
Additionally, Entergy New Orleans is requesting approval that the $39 million
withdrawal from its funded storm reserve in September 2021 and $7 million in
excess storm reserve escrow withdrawals related to Hurricane Zeta and prior
miscellaneous storms are properly applied to Hurricane Ida storm restoration
costs, the application of which reduces the amount to be recovered from Entergy
New Orleans customers by $46 million. The City Council has not yet set a
procedural schedule regarding the requested relief, though Entergy New Orleans
requested resolution by the end of first quarter 2023. Entergy New Orleans
intends to file with the City Council an application proposing a financing
method for recovery of costs deemed eligible for recovery.

Hurricane Laura, hurricane deltaand Winter Storm Uri (Entergy Texas)


As discussed in the Form 10-K, in August 2020 and October 2020, Hurricane Laura
and Hurricane Delta caused extensive damage to Entergy Texas's service area. In
February 2021, Winter Storm Uri also caused damage to Entergy Texas's service
area. The storms resulted in widespread power outages, significant damage
primarily to distribution and transmission infrastructure, and the loss of sales
during the power outages. In July 2021, Entergy Texas filed with the PUCT an
application for a financing order to approve the securitization of certain
system

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restoration costs, which were approved by the PUCT as eligible for
securitization in December 2021. In November 2021 the parties filed an unopposed
settlement agreement supporting the issuance of a financing order consistent
with Entergy Texas's application and with minor adjustments to certain upfront
and ongoing costs to be incurred to facilitate the issuance and serving of
system restoration bonds. In January 2022 the PUCT issued a financing order
consistent with the unopposed settlement. As a result of the financing order, in
first quarter 2022, Entergy Texas reclassified $153 million from utility plant
to other regulatory assets.

In April 2022, Entergy Texas Restoration Funding II, LLC, a company wholly-owned
and consolidated by Entergy Texas, issued $290.85 million of senior secured
system restoration bonds (securitization bonds). With the proceeds, Entergy
Texas Restoration Funding II purchased from Entergy Texas the transition
property, which is the right to recover from customers through a system
restoration charge amounts sufficient to service the securitization bonds.
Entergy Texas began cost recovery through the system restoration charge
effective with the first billing cycle of May 2022 and the system restoration
charge is expected to remain in place up to 15 years. See Note 4 to the
financial statements herein for a discussion of the April 2022 issuance of the
securitization bonds.

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 by operating segment for 2022 through
2024. Following are updates to that discussion.

Following are the current annual amounts of Entergy’s planned construction and other capital investments.

Planned construction and capital investments 2022 2023

     2024
                                                               (In Millions)
Utility:
Generation                                          $1,080        $1,325        $2,320
Transmission                                           835           805         1,025
Distribution                                         1,360         1,520         1,740
Utility Support                                        590           440           315
Total                                                3,865         4,090         5,400
Entergy Wholesale Commodities and Other                 10             -             -
Total                                               $3,875        $4,090        $5,400



The updated capital plan for 2022-2024 reflects incremental capital investments
for potential generation projects, accelerated resilience spending, and
increased capital project costs. The capital plan includes investments in
generation projects to modernize, decarbonize, and diversify Entergy's
portfolio, including Sunflower Solar, West Memphis Solar, Driver Solar, Orange
County Advanced Power Station, and St. Jacques Louisiana Solar; investments in
Entergy's nuclear fleet; transmission spending to drive reliability and
resilience while also supporting renewables expansion; distribution and Utility
support spending to improve reliability, resilience, and customer experience
through projects focused on asset renewals and enhancements and grid stability.

While Entergy is still assessing the effect on its planned solar projects, the
investigation by the U.S. Department of Commerce into potential circumvention of
duties and tariffs may result in increased duties or tariffs on imported solar
panels and has exacerbated previously existing supply chain disruptions, which
have negatively affected the timing and cost of completion of these projects.


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Walnut Bend Solar


As discussed in the Form 10-K, the APSC directed Entergy Arkansas to file a
report within 180 days detailing its efforts to obtain a tax equity partnership.
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. Closing was expected to occur in
2022. The counter-party has notified Entergy Arkansas that it is terminating the
project, though it is willing to consider an alternative for the site. Entergy
Arkansas has disputed the right of termination. Negotiations are ongoing, but at
this time the project is not expected to achieve commercial operation in 2022.

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. 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. Entergy
Arkansas views the progress of the outreach to potential tax equity investors
and the current status of the discussions as consistent with its expectations
for the timeline for achieving a tax equity partnership. Closing had been
expected to occur in 2023. The counter-party has notified Entergy Arkansas that
it is seeking changes to certain terms of the build-own-transfer agreement,
including both cost and schedule. Negotiations are ongoing, but at this time the
project is not expected to achieve commercial operation in 2023.

Solar Driver


In April 2022, Entergy Arkansas filed a petition with the APSC seeking a finding
that the purchase of the 250 MW Driver Solar facility is in the public interest
and requested cost recovery through the formula rate plan rider. The acquisition
of Driver Solar will be contingent upon receiving all necessary regulatory and
Board approvals. The APSC established a procedural schedule with a hearing
scheduled in June 2022, but the parties later agreed to waive the hearing and
submit the matter to the APSC for a decision consistent with the filed record.
The facility is expected to be in service by the end of 2024. Negotiations with
the counter-party are expected to conclude in August 2022, and Entergy Arkansas
has requested an APSC decision by August 31, 2022.

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