deliver - entergy · 2017. 3. 21. · clear vision, clear progress. 2015 integrated report 2...

Deliver

Serve

Align

Clear vision, clear progress.

2015 Integrated Report

What progress looks like at Entergy

Clear vision, clear progress.2015 Integrated Report

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Deliver

Deliver Power Reliably and Efficiently

The electricity and natural gas we provide to our utility and Entergy Wholesale Commodities customers fuel daily life for families, businesses and communities. We are investing to modernize our utility infrastructure and enhance reliability, and we are focused on the safe and secure operation of our EWC fleet.

Serve

Align

Serve Our Customers With Excellence

Providing excellent service is the foundation of our success. We are investing to enhance reliability, improve efficiency and lower our environmental impact, while exploring new technologies to improve our customers’ experience. We also continually seek out opportunities to improve productivity and promote economic growth, which helps maintain low rates and enhances our communities.

Align With Our Stakeholders’ Expectations

To deliver electricity and natural gas reliably and efficiently, it is essential we remain aligned with the expectations of our owners, customers, employees and communities. The support and flexibility we need to invest and operate effectively to meet our stakeholders’ needs and expectations come from actively working with our local, state and federal regulators.

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The following icons in this report indicate an economic, environmental, social or governance performance

indicator or recognition received that is indicative of the progress we have made.

ECONOMIC

ENVIRONMENTAL

SOCIAL

GOVERNANCE

RECOGNITION

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Table of Contents

4 Letter to Stakeholders

14 Our Leadership

15 Our Company

18 Utility

29 Entergy Wholesale Commodities

32 Workplace

40 Governance

51 Financial Highlights

61 Key Performance Indicators

65 About Entergy

68 Forward-Looking Information and Regulation G Compliance

72 Investor Information

74 Business Fact Sheets


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Letter to Stakeholders

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To Our Stakeholders

At Entergy, we take a lot of pride in what we do. Powering life for our customers, owners, employees and

communities is important work that holds tremendous opportunity. We are on a journey to capture that

opportunity and create value for our stakeholders. Two years ago, we set a clear vision for our company:

We Power Life; and a clear mission: create sustainable value for our customers, owners, employees and

communities. In 2015, we made clear progress on numerous operational and regulatory priorities that are

critical to creating sustainable value. Employees across our company pulled together as one team to achieve

an aggressive to-do list and respond to multiple challenges. It was a terrific effort that demonstrates our

commitment to aim high and act in the long-term interests of all our stakeholders.

Much of our work in 2015 was focused on building a foundation to become more predictable and deliver

stable utility, parent and other earnings growth. Our ability to operate successfully as a company is

predicated on delivering steady earnings and dividend growth and reducing risk. It is how we will continue

to power life and create sustainable value for our stakeholders. We have developed strategies that will

help us achieve this objective.

Our utility strategy includes aggressive investment plans to modernize our infrastructure and enhance

reliability. We made significant progress in 2015 to meet our customers’ long-term need for clean, reliable

power at reasonable rates. In generation, we pursued approvals for the acquisition of Union Power Station

and selected the self-build option for a new combined-cycle gas turbine unit in Louisiana. The Union Power

Station acquisition successfully closed in early March 2016. We launched utility-scale solar projects to provide

access to renewable energy sources to customers in Arkansas, Mississippi and New Orleans. In transmission

and distribution, we invested in projects to improve reliability and resiliency, connect new customers and

better handle flow patterns made possible by our move to the Midcontinent Independent System Operator,

Inc., or MISO. We initiated one of the largest transmission projects in our history and are moving forward with

steps toward the installation of smart meters to benefit our customers and lay the foundation for the next

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generation of grid technologies on our system. We will continue to work to be more agile and efficient so that

we are positioned to meet the technological and other developments that are changing the utility industry.

To facilitate our ability to make these types of productive investments for our customers, we work to mitigate

the impact on customer bills. Our average monthly bills are more than 20 to 25 percent below the national

average, a significant advantage for our customers and communities. We completed our second year in

MISO, a move that resulted in immediate benefits and will continue to have meaningful long-term

benefits in lowering costs for our customers through participation in a broader market. We advanced

efforts to support industrial growth in our region, which drives demand for power and helps us maintain

favorable rates. We also strengthened our ability to access capital to make investments through

progressive regulatory mechanisms, a stronger balance sheet and financial flexibility. Positive

developments in 2015 include the passage of legislation in Arkansas, Texas and Mississippi that supports

our ability to meet our customers’ needs when and how they want us to; the combination of our two

Louisiana companies into one utility to facilitate future investment; improved regulatory frameworks in

Arkansas and Texas that are better aligned to facilitate future investments and the transfer of Algiers,

Louisiana, assets to Entergy New Orleans, Inc. from Entergy Louisiana, LLC.

We took significant steps in 2015 to provide greater certainty around our Entergy Wholesale

Commodities business and its ability to generate positive cash flows. EWC faces continued pressure –

particularly in the Northeast – from low wholesale power prices, which further declined last year. We

announced in the fourth quarter of 2015 difficult, but necessary, decisions to close two nuclear plants that

are no longer financially viable – Pilgrim Nuclear Power Station in Massachusetts and James A. FitzPatrick

Nuclear Power Plant in New York. These decisions affect more than 1,000 dedicated Entergy employees,

as well as the communities that have been home to the plants’ operations for more than 40 years. We are

committed to supporting our employees and communicating openly and honestly with all stakeholders

affected by these closures.


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We continue to focus on safe, secure, reliable

operation of our remaining EWC nuclear assets.

The three remaining nuclear units are financially

viable at this time. Palisades Power Plant, a single-

unit plant in Michigan, operates under a favorable

power purchase agreement that expires in 2022.

Indian Point Energy Center, a low-cost, two-unit

plant in New York, is in an attractive market and

expected to operate at least into the next decade as

we work to secure license renewal from the Nuclear

Regulatory Commission. We also have interests in

several fossil and wind assets, and we continue to

provide management services to the Nebraska

Public Power District’s Cooper Nuclear Station.

We strengthened the foundation for a safe work

environment and a healthy, engaged organization.

We continue to evaluate our approach to safety

and make improvements to ensure our employees

and contractors work safely and go home safely every day after work. We launched a new companywide

system to track and report safety-related incidents, developed a new safety manual based on input from

more than 600 field personnel and created a new team within the utility organization to drive consistency

and focus.

We also continue to emphasize throughout the organization the need and benefits of improving our

organizational health. We are pushing culture change deeper in the organization and monitoring progress

through regular employee surveys. Our emphasis is on working more effectively as a team across

organizational boundaries to respond to challenges and achieve better outcomes.

We also continued to invest in the strong foundation we are building with our communities. Our efforts

are directed toward education with an emphasis on workforce development. In 2015, we initiated a

$5 million, five-year initiative to address workforce development issues and create competitive advantage

in the communities we serve. In addition, we invested approximately $3 million with organizations such

as Teach For America, STEM NOLA, Jobs for America’s Graduates and City Year to help ensure students,

particularly in underserved communities, stay in school and graduate with the skills to achieve their goals.

Our Commitment to Operational Excellence

Operational excellence is integral to who we are at Entergy. We are committed to maximizing the value

of our assets for our customers, owners, employees and communities through industry-leading operational

performance. We did not meet this commitment in 2015. Two of our nuclear facilities – Arkansas Nuclear

One in our utility business and Pilgrim Nuclear Power Station in EWC – were placed by the NRC in Column

4 of the Reactor Oversight Process Action Matrix, which is based on a scale of 1 to 5. As a result, both ANO

and Pilgrim are currently under additional NRC oversight. As we work through the evaluation and inspection

processes associated with returning these plants to Column 1, we are evaluating nuclear operations across

our fleet from top to bottom to identify any systemic issues. We are disappointed in our performance and

committed to strengthening a culture of operational excellence throughout our organization.

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We strengthened our leadership, refreshing our board of directors in 2015 and adding new members to

our executive team. We welcomed three new board members in anticipation of the retirement of two

valued members in 2016. By design, our board is diverse and balanced in terms of expertise and skills,

gender and tenure. We believe this helps ensure ideas are critically evaluated from multiple perspectives.

We also welcomed new members to our executive team. These seamless transitions are evidence of

the strong and deep leadership team at Entergy plus our willingness to gain outside expertise where

it is needed. At all levels of our organization, leaders are aligned to achieve our mission.

While much of our 2015 progress was focused on building a foundation for future growth, we also

delivered solid results for the year. Our 2015 operational earnings per share grew nearly 3 percent over

prior year. In 2015, our board of directors approved a 2.4 percent increase in our dividend, the first

increase in more than five years. Our objective is a steady, predictable trajectory in our dividend payout

going forward. Credit metrics remain strong across our operating companies. We focus on maintaining

investment-grade ratings, which helps ensure we have access to the capital we need to invest in our

business. Unfortunately, the progress we made in 2015 did not translate into returns for our shareholders.

Our total shareholder return was -18.2 percent, which ranked in the fourth quartile of our peer group.

However, following progress we made late in 2015, our total shareholder return improved to the top

quartile for fourth quarter, which validates the momentum we see moving into 2016.

A more complete list of our 2015 accomplishments follows. Suffice it to say, it was a busy year. Not only

did our employees address the items on our to-do list, they also responded quickly and effectively to

numerous challenges that arose during the year. Their commitment to doing what’s right for our stakeholders

is inspiring. And of course, we are already tackling an equally aggressive to-do list for 2016. We expect

to build on the foundational accomplishments of 2015 with another year of clear progress. We are on a

journey to power life and create sustainable value for our customers, owners, employees and

communities. We have important work to do.

Leo P. Denault

Chairman of the Board and Chief Executive Officer

March 23, 2016


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To Our Retiring Board Members: Thank You

Lead director Gary Edwards will retire from the Entergy board of

directors upon reaching mandatory retirement age. A member of

our board since 2005 and lead director since 2006, Gary helped guide

Entergy during a transformative period, when electric utilities adapted

to technological innovations, proposed regulatory changes and dramatic

shifts in commodities markets. Gary leads with confidence, experience

and a commitment to creating sustainable value for all stakeholders.

His contributions have helped position Entergy to operate successfully

as a company in the years ahead. Gary’s influence has been recognized

inside and outside our company. In 2015, he was named by the National

Association of Corporate Directors to the NACD Directorship 100, a list

of the most influential people in the boardroom and corporate governance

community who play a significant role in shaping the greater boardroom

agenda. We thank Gary for his service to the board and Entergy, and for

the lasting impact he has had on our company.

Board member Steve Wilkinson will retire from the Entergy board of

directors upon reaching mandatory retirement age. Steve’s extensive

public utilities, accounting and auditing expertise benefited our board

and all of Entergy’s stakeholders. Steve served on the Entergy board

since 2003 and as the audit committee chair since 2004. Previously, he

was an audit partner with Arthur Andersen for almost 25 years until his

retirement in 1998, serving as director of the firm’s North American utility

practice. He has played a critical role in helping Entergy meet its objective

of presenting information that is accurate, compliant and meaningful to

users of financial statements, and provided valuable guidance to our

management team. We thank Steve for his contributions to our board

and our company.

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To Our Retiring Team Members: Thank You

We thank our retiring executives for their many contributions to our company. Jeff Forbes retired as executive

vice president and chief nuclear officer in early 2016 after serving more than 12 years in the Entergy nuclear

organization. Jeff oversaw 11 nuclear units before moving into the role of chief nuclear officer and directed

regional operations for our utility nuclear plants. Mark Savoff retired as executive vice president and chief

operating officer following 12 years of service in operations at Entergy. He led the company’s transition

to MISO, the construction of the Ninemile Point Unit 6 plant ahead of schedule and under budget, and the

optimization of the utility fossil generation fleet. Hugh McDonald will retire as president and chief executive

officer of Entergy Arkansas, Inc. in 2016, following a 34-year career with Entergy. Hugh’s vision and leadership

have been instrumental in making the right decisions on many critical issues, and he has been a passionate

voice for our Arkansas customers and employees.

To Our New Executive Team Members: Welcome

We welcomed several new members to our executive team following retirements announced in 2015.

Chris Bakken III will join our organization as executive vice president and chief nuclear officer in early 2016.

He brings a unique combination of skills to our nuclear organization to help us perform at a sustained level

of operational excellence. Paul Hinnenkamp, previously Entergy senior vice president, capital project

management and technology, was named senior vice president and chief operating officer. Paul is responsible

for supporting the utility’s growth strategy with safe and reliable operations and disciplined fiscal and project

planning for our capital spending plans. Rick Riley, currently group vice president of customer service and

operations for Entergy Arkansas, will become president and chief executive officer of Entergy Arkansas in

2016. In that role, he will be responsible for customer service, economic development and resource planning

to meet the needs of Entergy Arkansas’ stakeholders.

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What Progress Looks Like at Entergy

• Dedicated Ninemile Point Unit 6 into service, the first utility plant Entergy has built in approximately

30 years

• Completed the Union Power Station acquisition

• Selected self-build option for St. Charles Power Station in Louisiana in a competitive bid process

• Issued request for proposals for long-term generation capacity in southeastern Louisiana

• Issued request for proposals for long-term generation capacity in the western region of

our Texas service area

• Pursued utility-scale solar projects in Arkansas, Mississippi and New Orleans

• Announced Lake Charles transmission project and received required certification

• Secured approval for more than $700 million of transmission investments

• Advocated for favorable legislation in Arkansas, Mississippi and Texas

• Secured an improved framework and settlement of Entergy Arkansas rate case

• Combined Entergy Gulf States Louisiana, L.L.C. and Entergy Louisiana, LLC into one utility

after receiving final approval

• Transferred Algiers, Louisiana, assets to Entergy New Orleans from Entergy Louisiana

• Utilized distribution cost recovery factor and transmission cost recovery factor mechanisms

in filings by Entergy Texas, Inc.

• Received approvals to end the Entergy System Agreement

• Announced decision to close Pilgrim Nuclear Power Station

• Announced decision to close James A. FitzPatrick Nuclear Power Plant

• Sold Rhode Island State Energy Center

• Improved 2015 safety performance over prior year

• Implemented new workforce safety system, manual and team

• Launched $5 million, five-year initiative to support workforce development in our communities

• Improved organizational health scores

• Achieved nearly 3 percent growth in 2015 operational earnings per share over 2014

• Increased dividend by 2.4 percent, first increase in five years

• Added three members to our board of directors in anticipation of 2016 retirements



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Our Leadership

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Board of Directors As of Dec. 31, 2015

MAUREEN SCANNELL BATEMAN Attorney, Former Executive Vice

President and General Counsel,

State Street Corporation

New York, New York

An Entergy director since 2000. Age 72

PATRICK J. CONDON

Retired Audit Partner,

Deloitte & Touche LLP

Frankfort, Illinois

Joined the Entergy Board in 2015. Age 66

LEO P. DENAULT

Chairman of the Board

and Chief Executive Officer,

Entergy Corporation

New Orleans, Louisiana

Chairman and Chief Executive Officer since 2013. Age 56

ADMIRAL KIRKLAND H. DONALD, USN (RET.) Former President and Chief

Executive Officer, Systems

Planning and Analysis, Inc.

Alexandria, Virginia


GARY W. EDWARDS

Former Senior Executive

Vice President, Conoco Inc.

Houston, Texas

Lead director of Entergy. An Entergy director since 2005. Age 74

PHILIP L. FREDERICKSON

Former Executive Vice President,

Planning, Strategy and Corporate

Affairs, ConocoPhillips

Horseshoe Bay, Texas


ALEXIS M. HERMAN Chair and Chief Executive Officer,

New Ventures, LLC

McLean, Virginia


DONALD C. HINTZ

Former President, Entergy

Corporation and Entergy

Services, Inc.

Punta Gorda, Florida


STUART L. LEVENICK

Former Group President

and Executive Office Member,

Caterpillar Inc.

Peoria, Illinois


BLANCHE LAMBERT LINCOLN

Founder and Principal,

Lincoln Policy Group

Arlington, Virginia


KAREN A. PUCKETT

President and Chief Executive

Officer, Harte Hanks, Inc.

Monroe, Louisiana


W. J. “BILLY” TAUZIN

Owner, Tauzin Strategic Networks

Washington, D.C.


STEVEN V. WILKINSON

Retired Audit Partner,

Arthur Andersen LLP

Watersmeet, Michigan


(left to right) Steven V. Wilkinson; Blanche Lambert Lincoln; W. J. “Billy” Tauzin; Philip L. Frederickson; Stuart L. Levenick; Maureen Scannell Bateman; Leo P. Denault; Gary W. Edwards; Alexis M. Herman; Donald C. Hintz; Admiral Kirkland H. Donald, USN (Ret.); Patrick J. Condon; Karen A. Puckett

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Maintaining an Effective Board

By design, our board is diverse and balanced from a variety of perspectives. We have significant diversity

in gender or ethnicity as well as directors from a wide variety of professional backgrounds including utility

and general business experience, nuclear industry experience, government and public policy experience

and finance and accounting experience. Some of our board members have successfully navigated their

companies through periods of transformational change stemming from technological advances and

changing competitive dynamics. We need expertise in each of these areas to ensure our board can provide

oversight and guidance on Entergy’s business portfolio. We also believe our board is a good example of

how the whole can exceed the sum of its parts. Our board members actively engage each other to assure

that all ideas are evaluated critically from a number of perspectives.

Our mandatory retirement age policy calls for the retirement of two valued board members in 2016:

Gary Edwards, our lead director, and Steve Wilkinson, chair of our audit committee. In anticipation of

these retirements, our corporate governance committee and board, assisted by a leading executive

recruiting firm, conducted a lengthy search process. The goal was to identify and recruit new directors

with the skills and background to replace those retiring and enhance the current board to face the future

challenges of an evolving industry. We needed at least one new director with a solid auditing background

and one with experience as a business leader in a company or industry undergoing transformational

change. The committee identified three outstanding candidates: Pat Condon, a retired audit partner at

Deloitte & Touche LLP with experience as an audit committee member on other boards, Karen Puckett,

a former executive at one of the nation’s largest telecommunications companies, and Phil Frederickson,

a former executive at ConocoPhillips who led the merger of Conoco and Phillips a number of years ago.

All three candidates joined our board in 2015.

With these additions and retirements, our board will be balanced in terms of tenure. Half of our non-

employee directors have fewer than five years of experience on our board and half have more than five

years. We are committed to maintaining an effective board structure that includes a lead independent

director appointed by a majority of the independent board members for a three-year term.

14 TIMES ENTERGY’S BOARD MET IN 2015

31% OF OUR BOARD WAS DIVERSE IN GENDER OR ETHNICITY

12 OF OUR 13 DIRECTORS WERE

INDEPENDENT

Our Leadership

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Entergy’s board met 14 times in 2015. All board members then in office attended approximately

95 percent of the total number of meetings of the board and the committees on which he or she served.

Board responsibility for sustainable economic, environmental and social practices is maintained by various

committees as part of their charters. The board’s six standing committees (and their meeting frequency

in 2015) are: audit (12), corporate governance (9), personnel (9), finance (8), nuclear (6) and executive (0).

Board Committees as of Dec. 31, 2015

NAME AUDITCORPORATE

GOVERNANCE PERSONNEL FINANCE NUCLEAR EXECUTIVE

Maureen S. Bateman (c)

Patrick J. Condon

Leo P. Denault (c)

Kirkland H. Donald

Gary W. Edwards

Philip L. Frederickson

Alexis M. Herman (c)

Donald C. Hintz (c)

Stuart L. Levenick (c)

Blanche L. Lincoln

Karen A. Puckett

W.J. “Billy” Tauzin

Steven V. Wilkinson (c)

(c) Chair

Our Leadership


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Entergy Corporation Executive OfficersAs of Dec. 31, 2015

LEO P. DENAULT Chairman and Chief Executive Officer

Joined Entergy in 1999 as vice president of corporate development and strategic planning. Became chairman and chief executive officer in 2013, after serving as executive vice president and chief financial officer. Age 56

THEODORE H. BUNTING, JR. Group President, Utility Operations

Joined Entergy in 1983. Became group president, utility operations in 2012, after serving as senior vice president and chief accounting officer. Age 57

WILLIAM M. MOHL President, Entergy Wholesale Commodities

Joined Entergy in 2002. Became president of Entergy Wholesale Commodities in 2013, after serving as president and chief executive officer of Entergy Gulf States Louisiana and Entergy Louisiana. Age 56

ANDREW S. MARSH Executive Vice President and Chief Financial Officer

Joined Entergy in 1998. Became executive vice president and chief financial officer in 2013, after serving as vice president of system planning. Age 44

RODERICK K. WEST Executive Vice President and Chief Administrative Officer

Joined Entergy in 1999. Became executive vice president and chief administrative officer in 2010, after serving as president and chief executive officer of Entergy New Orleans. Age 47

MARCUS V. BROWN Executive Vice President and General Counsel

Joined Entergy in 1995. Became executive vice president and general counsel in 2013, after serving as senior vice president and general counsel. Age 54

PAUL D. HINNENKAMP Senior Vice President and Chief Operating Officer

Joined Entergy in 2001. Became senior vice president and chief operating officer in 2015, after serving as senior vice president, capital project management and technology. Age 54

ALYSON M. MOUNT Senior Vice President and Chief Accounting Officer

Joined Entergy in 2002. Became senior vice president and chief accounting officer in 2012, after serving as vice president and corporate controller. Age 45

DONALD W. VINCI Senior Vice President, Human Resources and Chief Diversity Officer

Joined Entergy in 1985. Became senior vice president, human resources and chief diversity officer in 2013, after serving as vice president, human capital management. Age 57

Our Leadership

(left to right) Donald W. Vinci; Alyson M. Mount; Paul D. Hinnenkamp; Theodore H. Bunting, Jr.; Leo P. Denault; Andrew S. Marsh; Roderick K. West; William M. Mohl; Marcus V. Brown

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Our Company

Our Company

Entergy has a clear purpose, well-defined strategy and plan for execution of that strategy along with strong governance policies and practices. We strive to clearly communicate with our stakeholders to build understanding and support for our objectives and enable our long-term success.

Our Vision and Mission

We power life. This is our vision. It goes much further than powering the grid. Together, we help improve

lives, build businesses and create prosperity. “We power life” is Entergy’s promise to create a better

future for us all.

We exist to operate a world-class energy business that creates sustainable value for our four stakeholders –

owners, customers, employees and the communities in which we operate. This is our mission.

• For our owners, we create value by aspiring to provide top-quartile returns through the relentless

pursuit of opportunities to optimize our business.

• For our customers, we create value by delivering top-quartile customer satisfaction through

anticipating customer needs and exceeding their expectations while keeping rates reasonable.

• For our employees, we create value by achieving top-quartile organizational health; providing a safe,

rewarding, engaging, diverse and inclusive work environment, fair compensation and benefits; and

opportunities to advance their careers.

• For our communities, we create value through economic development, philanthropy, volunteerism

and advocacy and by operating our business safely and in a socially and environmentally

responsible way.

RECOGNITION

Entergy was named to the Dow Jones Sustainability Indices North America Index in 2015, our 14th

consecutive year to appear on the World or North America Index or both. We earned top scores

in economic, environmental and social responsibility areas – validating our approach to creating

sustainable value.

RECOGNITION

In 2015, Entergy earned the highest ranking for electric utilities on Corporate Responsibility Magazine’s annual list of 100 Best Corporate Citizens, consistent with our mission to operate

a world-class energy business.


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Our Business Model

Our business model includes operational excellence and asset management. Our business strategy is driven by detailed

analysis that informs our views of material economic, environmental and social issues, which we analyze on an ongoing

basis. Each year, we set clear areas of focus to align and empower our employees on the personal role each of them has in

achieving Entergy’s vision and business objectives. We also engage with other stakeholders to inform our business analysis

and strategies.

Our Company

KEY DRIVERS

Ongoing analyses in an ever dynamic market of material economic, environmental and social issues

SPECIFIC AREAS OF FOCUS DEFINED ANNUALLY

OUR STRATEGIC IMPERATIVES

ENTERGY’S BUSINESS MODEL

OPERATIONAL EXCELLENCESafely operating our assets and maximizing value of our existing assets and businesses

ASSET MANAGEMENTCreating sustainable value through modernizing or managing risk in our existing assets and by strategically planning to meet future power needs


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Our Value Creation Process

Our Company

INPUTS

Human Resources

Financial Capital

Intellectual Capital

Manufactured Resources

Natural Resources

Social/Relationships

OUTPUTS

Deliver value to our owners through top-quartile returns

Deliver top quartile customer satisfaction through anticipating customer needs and exceeding their expectations while keeping rates reasonable

Achieve top-quartile organizational health and provide a safe, inclusive work environment, fair compensa-tion and development opportunities for our employees

Support our communities through economic development, strategic giving and volunteerism

Operate in a socially and environmentally responsible way

ENTERGY

OUR VISIONWe Power Life

OUR MISSIONWe exist to operate a world-class energy business that creates sustainable value for our four stakeholders — owners, customers, employees and the communities in which we operate

OUR CORE COMPETENCIESCorporate Governance, Operational Execution, Financial Management, Emergency Preparedness/Response, Sustainability Strategies

OUR VALUES• Above All, Act with Integrity• Create and Sustain a Safe and

Healthy Life• Cultivate a Diverse and Inclusive

Work Culture• Possess a Winning Spirit• Focus on Our Customers• Grow the Business• Be Active Team Players• Treat People with Respect• Aggressively Look for Better Ways• Take Actions to Achieve Results

OUR STRATEGIC IMPERATIVES• Aggressively Grow the Utility Business• Manage EWC Transition• Transform the Organization


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Utility

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Utility

Our utility business provides power at favorable rates to residential, commercial, industrial and governmental customers in Arkansas, Louisiana, Mississippi and Texas. We also deliver natural gas to customers in New Orleans and parts of Baton Rouge, Louisiana. Our strategic imperative is to aggressively grow our utility business. We made clear progress in 2015, executing our plans to invest to deliver power safely, reliably and efficiently; align with our stakeholders’ expectations; and serve our customers with excellence.

Invest to Deliver Power Safely, Reliably and Efficiently

In 2015, we provided power and natural gas safely, reliably and efficiently to

existing customers and invested to serve future demand. Investments in our

generation, transmission and distribution infrastructure help us manage our

production costs and maintain low rates while meeting reliability goals and

environmental regulations.

ENVIRONMENTAL

Environment2020, the holistic, 10-year environmental strategy we adopted in 2011, is driven by

stakeholder concerns, potential new regulatory requirements, environmental resource limitations,

financial considerations and Entergy’s commitment to the environment. We have made clear progress

in each of the six areas of strategic focus. For further information visit entergy.com/environment.

Generation

Ongoing portfolio transformation is a key strategy for Entergy. We engage stakeholders and anticipate

future environmental requirements in our planning process. This process guides our investments

in long-term generation resources to plan for the retirement of aging assets and meet growing load

demands while reducing our environmental footprint. Modernizing our fleet creates meaningful benefits

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The Benefits of MISO Membership

The utility generation assets we own and acquire are now operated within MISO – an evolution of our

operating model that is creating even greater efficiencies, lower operating and fuel costs, lower electricity

costs for customers and significant benefits in deferred generation costs for our business. MISO’s real-

time and day-ahead energy markets use centralized economic dispatch and security constrained unit

commitment to optimize all resources within the region based on bids and offers provided by market

participants. The shift to regional use from localized use of the electrical system allows more efficient

and effective deployment of generation assets. In 2015, Entergy’s CCGT units set all-time production

records due to MISO operations and low natural gas prices.

Utility

for our customers through improved efficiency, reliability and

resiliency. Our strategy calls for the evaluation of acquisitions,

long-term power purchases and new-build options to develop

a modern and efficient generation portfolio capable of providing

reliable, cost-effective power. Our resource decisions are informed

by many factors such as prospective environmental regulations,

including CO2, energy efficiency and demand-side management

programs, as well as the preferences and expectations of our

customers. As a result, since establishing our portfolio transformation

strategy in 2002, we have replaced nearly 20 percent of our generation

resources with cleaner, more efficient resources.

In early 2016, we completed our acquisition of Union Power Station, a 1,980-megawatt generating

facility near El Dorado, Arkansas. The facility consists of four highly efficient, combined-cycle natural

gas-fired generating units. We acquired Union Power Station, which went into commercial service in 2003,

at a purchase price that was approximately half the cost to build a comparable new CCGT facility.

In order to provide additional generation for our Louisiana customers, we

selected in 2015 the self-build option in a competitive process with an

independent monitor. We have requested approval from the Louisiana Public

Service Commission to proceed with the construction on the St. Charles Power

Station, a 980-megawatt CCGT in Montz, Louisiana. With a targeted in-service

date of June 2019, this plant will provide economic and reliable power to our

customers for many years. We are planning for additional resource needs with

similar units in the Lake Charles area of Louisiana and the western region of our

Texas service territory through self-build or other agreements to be determined

in competitive bid processes. Our long-term plans also call for the addition of

smaller, more flexible combustion turbine units in New Orleans and Arkansas.

Since 2002, we have replaced nearly 20 percent of our generation resources with cleaner, more efficient resources.

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Utility

We have pilot projects underway in multiple utility operating companies to study the feasibility of

utility-scale solar generation. Together, these projects will help us assess geographic differences and

capacity factors while providing our customers with access to a renewable energy source. Entergy

Mississippi, Inc. launched three solar pilot installations in three different locations, each capable of

generating 500 KW from fixed-tilt solar arrays. Entergy New Orleans selected a contractor to begin

construction in 2016 of a 1 MW solar generation project with state-of-the-art battery storage technology

to help compensate for cloud cover. Entergy Arkansas entered into a power purchase agreement to

facilitate construction of an 81 MW photovoltaic solar energy generating facility that is expected to be

connected to the grid in mid-2019. When complete, the 500-acre project will be capable of generating

enough clean energy to power approximately 13,000 homes.

ECONOMIC

In March 2015, the Nuclear Regulatory Commission moved

Arkansas Nuclear One into Column 4 of the Reactor Oversight

Process Action Matrix, resulting in a substantial increase in

regulatory oversight. The move came after two years of

review following the lift failure and subsequent stator drop in

March 2013, as well as flood protection problems. Since then,

we have assembled a team of experts to focus on the event

causes and ensure proper implementation of corrective

actions to ensure ANO’s recovery to Column 1 in regulatory

oversight.

Transmission

Our move to MISO enhances reliability by informing all market participants on the state of grid conditions

and market operations through the public posting of electricity prices and other key system information.

MISO mitigates transmission congestion on a least-cost basis, allowing for more timely and efficient

congestion management. Integrating MISO into our business model also has created different flow

Utility Nuclear FleetCapability Factor

‘11 ‘12 ‘13 ‘14 ‘15

9288

8190 90

Capability factor: percentage of the maximum energy generation a plant is capable of supplying to the grid, limited only by factors within control of plant management

28%

13%

34%

25%

29%

11%

33%

27%

25%

10%

39%

26%

28%

11%

33%

28%

27%

7%31%

35%

Generation Sources Usedto Meet Utility Demand

PURCHASED POWER COAL

NUCLEARGAS

‘11 ‘12 ‘13 ‘14 ‘15

21


Utility

patterns on our transmission system and highlighted where new transmission

facilities and upgrades are economic. In 2015, we invested more than $630

million in transmission infrastructure. Highlights include:

Entergy Arkansas began construction on a 24-mile transmission line in southeast

Arkansas to support economic growth in the region and improve reliability.

The $62 million investment is in addition to the $25 million investment already

underway in a 27-mile transmission line in southeast Arkansas.

Entergy Louisiana received certification for the Lake Charles project, a $159 million

project, excluding contingency, that includes the construction of two new

substations, the expansion of a third and the addition of about 25 miles of high-voltage transmission

lines to move power reliably and efficiently into this fast-growing region. Construction begins in 2016.

Entergy Mississippi will begin construction of the $132 million Southwest Mississippi Reliability Improvement

Project in the spring of 2016, which includes a new 65-mile transmission line and the rebuilding of several

sections of existing transmission lines. The project is needed to maintain compliance with industry standards

and support growth in the Natchez area.

Entergy New Orleans began a $30 million transmission upgrade to enhance reliability and increase capacity.

This is an important step in preparation for our future generation landscape, such as the retirement of our

Michoud generating facility in coming months.

Three important projects will go into service in Entergy Texas, Inc. in early to mid-2016. The Ponderosa–Grimes

230 kV line, the Orange County Project and the China–Amelia 230 kV line together represent nearly

$150 million of transmission investment and will provide reliability benefits throughout the Entergy

Texas footprint.

Two new Transmission Control Centers are under construction and on track for completion in 2016

in Arkansas and Mississippi. Each center represents a $23 million investment and is being built to

withstand an EF5 tornado. The centers will share sophisticated communications technology to enable

close coordination of operations and enhance training and development.

ENVIRONMENTAL

We use integrated mapping systems to locate and avoid

as practical impact on habitats, threatened and endangered

species, avian species and wetlands with our transmission

and distribution projects, which helps limit our operational

impact on biodiversity. In addition, we actively participate

in avian monitoring programs such as those for eagles. We

also have an avian and wildlife protection standard and an

avian protection plan that promotes compliance with wildlife

conservation and avian protection laws. Reducing electrical

system impacts on wildlife also contributes to improved

service reliability.

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Utility

ENVIRONMENTAL/RECOGNITION

Entergy was named a 2015 Tree Line USA utility by the Arbor Day Foundation, which helps promote

the dual goals of delivering safe, reliable electricity while maintaining healthy community forests.

We also educate customers on the important role trees play in their personal energy efficiency

efforts by providing shade in high power demand months.

Electric Distribution

We are exploring new grid technologies to improve resilience, enhance reliability, lower cost and improve

customer service. We are moving forward with steps toward the installation of smart meters to benefit

our customers and expect to begin to make regulatory filings in 2016, where necessary. Smart meters

facilitate operational efficiencies, enable faster outage response and empower customers with information

to better understand and control their usage. In addition, smart meters lay the foundation for the next

generation of grid technologies on our system. We are evaluating broader grid modernization initiatives,

engaging with our stakeholders and bringing forward further proposals as appropriate.

We are also exploring technologies to improve grid reliability and resilience through storm hardening

and wildlife protection, as well as technologies and devices that enable deployment of distributed energy

resources and micro grids. Our goal is to meet customer expectations for service now and in the future

while managing the required investments to maintain our rate advantage.

Gas Distribution

Our gas distribution business delivers natural gas to about 199,000

retail customers in Baton Rouge and New Orleans. In New Orleans,

in the 10 years since the devastation of Hurricane Katrina, we have

replaced more than 300 miles of pipe as of 2015, and rebuilding

continues. In Baton Rouge, we began a gas pipeline replacement

program in 2015 to replace 100 miles of pipe over the next 10 years

to improve safety and reliability.

Commercial Development and Innovation

To bring a constant focus on evaluating and integrating new technologies into our operating model,

we have created a team dedicated to this vision. Our Commercial Development and Innovation team will

focus on addressing customer needs through product and service innovation, technology deployment and

alternative service models. Work will focus on evaluating and integrating rapidly evolving technologies

such as distributed generation, utility and community solar, micro-grids and battery storage, among others.

In addition, the new department will also research and develop the enabling technologies that enhance the

distribution grid and provide higher service and reliability to customers, such as smart meters, advanced

grid automation and grid infrastructure hardening.


23

Utility

Align With Our Stakeholders’ Expectations

We engage with our stakeholders to better understand their needs. Aligning

our objectives with the expectations of our owners, customers, employees and

communities helps us make better business decisions. We engage regularly

with our stakeholders to communicate our strategies and plans, gather feedback

and gain support to help us achieve our goals. We communicate face-to-face at

stakeholder events and through numerous other channels including e-newsletters,

social media and bill inserts.

Through our outreach efforts, we also are able to make our perspectives known to and understood by

policymakers. We work with the NRC to ensure continued safe and secure operation of our nuclear fleet.

On the state and local levels, we work constructively with our regulators to secure regulatory frameworks

that support our ability to make productive investments to benefit our customers. Roughly 90 percent

of the investments in our utility capital investment plan are under some form of progressive regulatory

framework. Earning a reasonable return on our investments allows us to maintain low rates through

operational and service excellence, which in turn helps us attract and retain customers. We made significant

progress across our utility operating companies. For example:

• Legislation facilitating future investment was passed in Arkansas, Mississippi and Texas.

• The Mississippi Public Service Commission approved a rate modernization plan with forward-

looking features.

• The Arkansas Public Service Commission approved a net $128 million base rate increase and

9.75 percent return on equity and established a framework for the forward test year formula

rate plan.

• The Public Utility Commission of Texas allows rider mechanisms to facilitate investments

in transmission and distribution infrastructure. Use of the distribution cost recovery rider was

approved and the filing for the transmission cost recovery rider is in progress.

We also received approvals to end the Entergy System Agreement. The agreement will end in third

quarter 2016, simplifying our regulatory structure and reducing risk and uncertainty for us and our

customers. It will allow us to put greater focus on the distinct opportunities of each of our retail regulatory

jurisdictions as well as our core operations without the distractions from the near constant inter-regional

litigation associated with this agreement.

VIDEO >

24


Utility

ECONOMIC

In 2015, the utility return on equity, normalizing for weather and tax items and excluding the

impact of regulatory charges, was 8.9 percent. This is below our average allowed return levels of

around 10 percent. With the expectations for load growth and cost management combined with

the regulatory outcomes to facilitate investment for our customers, we expect to significantly

close the gap to our average allowed return levels in the coming years.

ECONOMIC

On Oct. 1, 2015, Entergy Gulf States Louisiana and Entergy Louisiana combined into a single utility,

which is expected to provide up to $140 million in customer benefits over the first decade from improved

financial and operating structures, enhanced economic development efforts and reduced regulatory

costs. Entergy Louisiana also transferred its Algiers, Louisiana, assets and some 22,500 electric

customers in Orleans Parish to Entergy New Orleans. Electric service to all Orleans Parish customers

is now consolidated in one company, simplifying regulatory processes and making Entergy New

Orleans a larger company with greater financial flexibility and opportunities to generate long-term

customer savings through economies of scale.

ECONOMIC

ECONOMIC/ENVIRONMENTAL

Our targets for environmental charitable investments include acres of land restored or placed under

conservation, improved biodiversity and improved community resiliency and flood protection.

Between 2010 and 2015 Entergy’s partnership with The Nature Conservancy resulted in:

• Reforestation of 500 acres of bottomland hardwood in the Big Woods/Cache River in Arkansas.

• 70,000 seedlings planted and 60 acres of long leaf pine forest restored in the Sandyland

Sanctuary in Texas.

• Creation of a public-private partnership to provide incentives to private landowners in

Mississippi to enroll their property in state conservation programs. Entergy provided seed

funding that was leveraged 4:1 by federal and other funds.

• 85,000 trees planted and 135-acre restoration of Mollicy Bayou in Louisiana.

“ Entergy Arkansas is considered a valuable partner to the state’s economic development efforts. Their competitive rates and willingness to step forward are vital to job creation in Arkansas.”

– Grant Tennille, former Executive Director of the Arkansas Economic Development Commission

“ We appreciate Entergy Louisiana’s advice throughout our early design and now the close working relationship as we enter into our final construction with the actual physical power connection.”

– Vianney Vales, Chief Executive Officer of Juniper GTL


25

Utility

25

Serve Our Customers With Excellence

Excellent service that meets our customers’ expectations is the foundation

for our business success. All of our utilities improved by several points in the

J.D. Power 2015 Electric Utility Residential Customer Satisfaction Study. In

the Cogent Reports 2015 Utility Trusted Brand & Customer Engagement™:

Residential Study, Entergy ranked fifth among 125 of the nation’s largest

electric and natural gas utilities for engaged customer relationships. We also

track our performance in the Bellomy Perception Survey, monitoring the

percentage of randomly selected customers who respond with a score of 8, 9 or

10 when asked how satisfied they are with Entergy as a utility company on a 10-point scale, with 10 being

most satisfied. For the past three years, Entergy has achieved more than a 70 percent positive response.

Reliability

While we improved along many dimensions of customer service in 2015, our reliability performance fell

short of our targets. Outage frequency and outage duration both increased in 2015. We are evaluating our

system performance and response procedures to improve our reliability going forward.

Emergency preparedness and response are key components of reliability at Entergy. In 2015, we restored

power safely and quickly following significant storms in Arkansas and Louisiana. We prepare for extreme

weather events year-round, conducting robust emergency response drills and business continuity

planning. We invest in and harden our systems to improve resilience and reduce the time it takes to

restore service. We engage with our communities and customers to prioritize our investments and

minimize business disruptions.

Customer Cost

Our average monthly bills to our residential customers are more than 20 to 25 percent below the national

average. We strive to maintain that bill advantage for our customers and to support growth in the

communities we serve. In addition to our efforts to manage our costs, we strive to lower customer costs

through economic development activities and energy efficiency and demand-side management programs.

VIDEO >

26


Utility

All classes of customers – residential, commercial, industrial and governmental –

continue to benefit from our membership in MISO. We also continue to focus

on gaining efficiencies through generation and transmission projects that

reduce production costs, investments to improve productivity and predictability

and distribution investments that lower cost and usage. For example, we

installed telemetry on our vehicle fleet to optimize fleet size and deployment.

By measuring, tracking and reporting vehicle data, we have saved more than

400,000 gallons of fuel and $400,000 in maintenance costs.

Economic growth generates additional demand for power, which helps us maintain

favorable rates. We enable economic growth by maintaining low rates and reliable

service, investing in our local communities and meeting regularly with local and state leaders and with

existing and prospective customers. We continued our extensive outreach efforts and made upgrades to

our site selection websites to help businesses considering an expansion or relocation to the region.

We offer energy efficiency programs as well as tools to help our customers reduce their energy bills. The

objectives of Entergy’s demand-side management and energy efficiency programs for residential and

commercial customers are to reduce the overall cost of meeting energy resource needs; provide customers

with attractive options to reduce their energy consumption; educate customers on the value of energy

efficiency; and support low-income and sustainability initiatives. For industrial customers, objectives

of Entergy’s programs include reducing energy-related costs and maximizing energy reliability.

Across our utilities, we have invested more than $345 million from

2002 to 2015 to deliver approximately 428 MW of load reduction

and approximately 1.36 million MWh of cumulative energy savings.

Currently we offer more than 30 energy efficiency and demand-side

management programs across our four utility states. Benefits of these

programs are reduced energy costs, deferred generation investment

and reduced environmental footprint. We offer a variety of tools to all

classes of customers based on their needs. For residential customers,

these include resources to encourage energy efficiency including DIY

videos, online advisors and home energy calculators that offer online

energy audits. We promote these tools through a monthly customer

e-newsletter. A web page, myResources, serves as a starting point for

customers to research and identify actions to reduce consumption and

lower their utility bills. Through myResources, customers can access

myAdvisor, myHome, myPaymentOptions and myAccount Online. In

2015, there were nearly 160,000 visits to Entergy’s website to perform

online energy audits and access energy efficiency information.

SOCIAL

Seventy percent of companies considering relocation to Louisiana cite education and workforce

readiness as a top concern. Entergy launched a $5 million, five-year initiative to address workforce

development issues in our region.

Currently we offer more than 30 energy efficiency and demand-side management programs across our four utility states. Benefits of these programs are reduced energy costs, deferred generation investment and reduced environmental footprint.

VIDEO >

27


Utility

Customer Experience

Our customers expect the same seamless service from Entergy as they receive from other service

providers. In early 2015, we announced our customer digital roadmap, a major plan to design, integrate and

implement new digital customer-facing technologies over the next three to five years to meet and exceed

customers’ expectations and transform the customer experience. We have developed a comprehensive

roadmap to transform our operations with more streamlined, efficient and data-driven ways of serving

our customers that give customers more choice, control and personalized service. Advanced metering

infrastructure, new digital self-service and social media options and customer relationship management

tools that enable personalized service are examples of investments we are evaluating to transform the

customer experience provided by Entergy.

ECONOMIC

Like all of Entergy’s utilities, Entergy Mississippi has a business and economic development team tasked

with growing the business by recruiting new industry to the service territory. In this way, the team helps

attain Entergy’s strategic imperative to aggressively grow the utility business. One of the Mississippi team’s

targeted industrial sectors for economic growth is the automotive industry. By collaborating with community

partners to attract Continental Tire – the world’s fourth largest tire manufacturer – to Mississippi, Entergy

Mississippi has helped to bring a $1.45 billion investment to Hinds County. This is not only the largest

economic development announcement for central Mississippi in decades, it is also one of the largest

projects of its kind in North America. The plant will create 2,500 new jobs with an average annual salary

of $40,000.

ECONOMIC/SOCIAL

It’s been 10 years since Hurricane Katrina devastated the Gulf Coast. At Entergy, 1.1 million customers were

impacted, power plants were knocked off line and countless transmission and distribution lines went

down. Since then, we have invested more than $1 billion in upgrading plants and substations, and nearly

$300 million in hardening transmission and distribution systems. We have also invested $37 million in

community efforts to create a stronger, more prosperous and sustainable Gulf Coast region. Today, the

Gulf Coast and the people who call it home are one of the great comeback stories of our time.

System average interruption duration index: average minutes per customer per year, excluding the impact of major storm activity

‘11 ‘12 ‘13 ‘14 ‘15

196 196181

194214

Outage Duration

Entergy utility system weighted average; varies by utility operating company

‘11 ‘12 ‘13 ‘14 ‘15

96.4691.58

101.02 104.26 102.15

Average Monthly Residential Bill1,000 kWh Usage/Month

In Dollars

System average interruption frequency index: average number per customer per year, excluding the impact of major storm activity

‘11 ‘12 ‘13 ‘14 ‘15

1.611.68

1.52 1.581.69

Outage Frequency

28


Utility

SOCIAL

Many people live in poverty in the states served by our utilities. We created our low-income customer

assistance initiatives both to help our customers in need and to manage the financial risk to Entergy

when customers can’t pay their bills. The goals of these initiatives are to increase the flow of funds

from all sources to help low-income customers achieve economic self-sufficiency, to educate low-

income customers on managing their bills and to help low-income customers pay their bills. Through

fundraising and advocacy efforts in 2015, we helped our customers pay more than 200,000 bills, avoid

disconnections and reduce write-offs.

ENVIRONMENTAL

Our utilities own 21 GW of generation, 15,500 miles of transmission and 100,000 circuit miles of

distribution lines in the Gulf Coast region – susceptible to storms potentially made worse by coastal

wetlands loss. Entergy manages physical risks by storm-hardening of its transmission and distribution

system, technical conferences with customers on resilience, investment in emergency preparedness

and research into adaptation. For example, we are partnering with Tierra Resources to help restore

and preserve more of Louisiana’s wetlands through aerial planting of mangroves. Wetlands play a

crucial role in storm protection and economic prosperity for many Entergy communities. Entergy is

also engaged with The Lowlander Center to revisit the 2010 Building a Resilient Energy Gulf Coast

report and data, and the recommendations of the Blue Ribbon Resilient Community Forums conducted

in 2011-2012 in partnership with America’s WETLAND Foundation. Recent reports and data on

businesses in coastal communities are being reviewed to ascertain the impacts of the previous

efforts, as well as to identify additional opportunities to promote resilience.

RECOGNITION

The Edison Electric Institute honored Entergy with the EEI Emergency Recovery Award and the

Emergency Assistance Award, recognizing outstanding power restoration efforts on behalf of our

customers and for assisting a neighboring utility company in recovering from severe summer

storms. This is the 18th consecutive year Entergy has received an EEI storm restoration award.

Including this year’s honor, Entergy has received 24 awards from EEI for our restoration and mutual

assistance work, and we are the only utility in the country to be recognized every year since the

inception of the awards.

ECONOMIC/ENVIRONMENTAL

We are benefiting our customers in our local communities through our online, self-service tools.

Self-serve transactions now represent 55 percent of our customers’ transactions. In 2015, we met

our target goal of approximately 450,000 customers opting for paper-free electronic billing, meeting

customers’ needs, reducing environmental impact and representing more than $13 million in

operational savings.


29

Entergy Wholesale Commodities


Our Entergy Wholesale Commodities generation fleet provides safe, reliable power for our wholesale customers. In recent years, wholesale power generators have been challenged by persistent low prices due to abundant shale gas. Our strategic imperative is to transition to a smaller merchant fleet while properly managing all risks and safely and reliably operating our facilities. We made clear progress in 2015, managing the EWC transition while continuing to engage with our stakeholders.

Manage Risk and Operate Our Facilities Safely and Reliably

Power prices declined significantly in 2015 and our long-term outlook is for continued low wholesale power

prices, particularly in the Northeast. Based on that outlook, we took aggressive steps to reduce price risk

in 2015. At the same time, we maintained our hedging activities to ensure we are well-positioned to capture

upside from any future price volatility.

In late December, we sold the 583-megawatt Rhode Island State Energy

Center – a dispatchable CCGT plant with a favorable competitive position

in the region in which it operates. The base sales price was approximately

$490 million, well above the purchase price Entergy paid in December

2011. The transaction is consistent with our strategy to reduce wholesale

market price risk and free up financial resources for other opportunities.

We announced the closure of two single-unit nuclear plants – Pilgrim

Nuclear Power Station in Massachusetts and James A. FitzPatrick Nuclear

Power Plant in New York. We made the difficult decisions to close these

plants based on the continued deteriorating economics of each facility. Among the primary factors driving

the plant closures were low natural gas prices, market designs that fail to properly compensate nuclear

generators for fuel diversity, reliability, environmental and other benefits, as well as high operating costs.

Pilgrim is expected to shut down no later than June 1, 2019, while FitzPatrick is planned to shut down

on January 27, 2017. While closing Pilgrim and FitzPatrick makes financial sense for our company and our

owners, we recognize the consequences of shutdowns on plant employees and the surrounding communities.

We are committed to supporting both groups during the transition.

Indian Point is a low-cost plant located in a favorable market. It supplies on average 25 percent of the power for New York City and the Westchester County area.

30


We formed a nuclear decommissioning organization in late 2015 to

focus on the safe transition to full dormancy of Pilgrim, FitzPatrick

and Vermont Yankee Nuclear Power Station, which transitioned to

a SAFSTOR organization at the end of 2014. The model for success at

Vermont Yankee and best practices from other decommissioning efforts

outside the company will be followed to ensure strong linkage among

site-specific decommissioning plans, application of best practices and

risk management.

The remaining EWC fleet includes three financially viable units – Palisades

Power Plant in Michigan and Indian Point Energy Center Units 2 and 3

in New York – as well as interests in several fossil and wind power plants.

We also provide management services to the Cooper Nuclear Power

Station in Nebraska. Palisades operates under a favorable power

purchase agreement that expires in 2022. Indian Point is a low-cost plant

located in a favorable market. It supplies on average 25 percent of the power for New York City and the

Westchester County area. We continue to pursue license renewal from the NRC for Indian Point Energy

Center through a multi-year process during which the plant continues to operate.

In addition to addressing market risks, we manage risks by operating safely and reliably. We were

disappointed in our operating performance in 2015. While Palisades successfully moved to Column 1

of the reactor oversight process, the NRC moved Pilgrim to Column 4, resulting in a substantial increase

in regulatory oversight. We also experienced several unplanned outages at Indian Point 3 during the year,

and in early 2016 the unit was moved down to Column 2 of the Reactor Oversight Process Action Matrix.

We are committed to resolving performance deficiencies and ensuring recovery in plant performance.

ECONOMIC

Indian Point Energy Center contributed $1.6 billion in 2014 to the New York economy, according to a

Nuclear Energy Institute study. The plant’s nearly 1,000 employees stimulate almost 4,400 additional

jobs in other businesses in New York.


Capacity factor: normalized percentage of the period that the nuclear plants generate power

‘11 ‘12 ‘13 ‘14 ‘15

9389 89 91 91

EWC Nuclear FleetCapacity Factor


31

Engage With Our Stakeholders

We regularly engage with community stakeholders affected by our operations. For example, Entergy and

New York State officials engaged in extensive discussions in 2015 to reach a constructive and mutually

beneficial agreement to avoid a shutdown of FitzPatrick, but were ultimately unsuccessful. Despite the

plant’s solid operational performance, the economics simply do not support its continued operation. We

are thankful for the pledge of support for the plant, and the nuclear industry as a whole, by our regional

representatives. We will continue to be a good corporate citizen, recognizing that this is a significant event

for the local economy and for surrounding communities. We continue our stakeholder engagement, as we

have done in Vermont, with the employees and communities affected by these decisions. We will also have

continued outreach in the communities where we are decommissioning facilities.

We also engage with state, regional and federal stakeholders and regulators on material issues that

affect our operations. We are engaged with multiple organizations and agencies as part of the license

renewal process for Indian Point Energy Center. We also continue to encourage discussions with key

stakeholders on market design issues to ensure generators are fairly compensated for the value these

assets provide in terms of system reliability and both environmental and economic sustainability.

ECONOMIC/ENVIRONMENTAL/SOCIAL

U.S. nuclear energy facilities provide approximately $60 billion annually to the U.S. economy.

Nationwide, nuclear power saves consumers an average of 6 percent on their electric bills and

avoids the emission of more than 500 million tons of CO2, according to The Brattle Group.



32

Workplace

Workplace

We are investing in our organization to forge a healthy culture. Our strategic imperative is to transform our organization by sustaining workforce safety and wellness; driving organizational health; and recruiting, retaining and developing our workforce.

Sustain Workforce Safety and Wellness

There is nothing more important at Entergy than working safely and going home safely every day after work. In addition to protecting our employees’ well-being, strong operational safety and top-tier safety practices are fundamental drivers of our business performance. We continue to evaluate our approach to safety and make ongoing improvements to achieve our goal of top-decile safety performance.

In 2014, when our safety performance fell short, we engaged our leaders to be in the field observing and coaching, instituted hazard recognition programs and reinforced the use of human performance tools. As a result, accident rates dropped significantly by year-end. We continued these efforts in 2015 and made a number of changes to our safety practices and systems. We created a special safety team to work closely with safety advisory boards, provide field safety support, develop targeted training and coordinate third-party reviews. We launched a new accident and incident reporting system (AirsWeb) companywide to track and report safety-related incidents, audits and observations. We also introduced a new safety manual, developed with input and feedback from more than 600 field personnel.

Workforce safety performance improved in 2015, reducing the employee recordable accident index rate by 11 percent. Entergy employees had 111 recordable accidents, down from 120 in 2014, and there were no fatalities for the second year in a row. Our 2015 employee safety performance ranked in the second quartile of the Southeastern Electric Exchange benchmarking survey of investor-owned utilities.

After a recordable accident rate for contractors of 1.22 in 2013, measures including a contractor safety summit were implemented. Contractor injuries in 2014 decreased to a rate of .91, and in 2015, the rate dropped to .85, tying our lowest-ever recorded injury rate for contractors since recordkeeping began in 2001. Entergy contractors had 72 recordable accidents in 2015, down from 85 in 2014, and there were no

33


fatalities. We held the 2015 contractor safety summit in June, bringing together more than 70 contract partners in Houston, Texas, to share best practices.

Improving workforce wellness benefits our employees and helps Entergy better control health care costs. Our HealthStrides long-term health care strategy has yielded savings for both employees and the company by holding medical plan cost increases to less than the national average. Factors that have helped slow the increase in costs include intentional consumerism by employees in making health care choices, greater participation in Entergy’s ENSHAPE wellness program and preventive health care and vendor improvements. Participating employees use the ENSHAPE program to monitor health through health screenings, health risk assessments and participation in walking, health maintenance, nutritional and other informational, educational and peer support programs. In 2015, our goal was for 18 percent of employees to complete the Triathlon of Wellness. The triathlon is led by our executive leadership team and encourages employees to engage in health screenings, health risk assessments and health action programs. We achieved 18.2 percent participation. Positive results of wellness are far-reaching and include stronger teamwork and engagement from participating in group wellness events as well as improved fitness, which facilitates working safely and productively.

ENVIRONMENTAL/SOCIAL

Cycling to work can play a significant role in reducing employee vehicle trips to the office, helping lower air emissions and reducing roadway congestion. Entergy continually encourages our employees to adopt lifestyles such as cycling for fitness as a foundation to working more safely. The inaugural Entergy Bike the Big Easy event attracted nearly 1,400 cycling enthusiasts, promoting a healthier, eco-friendly lifestyle and helping to boost local tourism. Riders, including more than 100 Entergy employees, cycled 20-mile and 40-mile courses along some of the more than 100 miles of urban bike paths built through Entergy’s partnership with the city of New Orleans and the Louisiana Public Health Institute.

ECONOMIC/SOCIAL

Entergy’s Navasota network in Texas last experienced a lost-time accident in October 1972. The linemen and servicemen who maintain this remarkable record attribute it to working side by side, questioning anything that doesn’t look right and providing hands-on training to new employees.

‘11 ‘12 ‘13 ‘14 ‘15

0.990.85

1.22

0.91 0.85

Contractor Year-Ending Recordable Accident Index

‘11 ‘12 ‘13 ‘14 ‘15

0.57

0.78

0.53

0.880.78

Employee Year-Ending Recordable Accident Index

Workplace

Recordable accident index: number of recordable accidents per 100 full-time equivalents Recordable accidents include fatalities, lost-time accidents, restricted duty accidents and medical attentions


34

Drive Organizational Health

We are committed to building an aligned, engaged culture to meet our company objectives and help our

employees grow and develop. Driving employee engagement helps us create a healthy organization that

can respond quickly and effectively to external challenges. Engaged employees are motivated and look

for new and better ways to create value for our stakeholders.

We are committed to instilling best practice behaviors that drive greater employee engagement and

improved organizational health, and on continually measuring progress. In 2015, response rates to

organizational health surveys were high as employees shared candid and constructive feedback. High

participation rates and improved scores in the categories of “open and trusting” and “engaged leadership

practices” indicate we are building a solid foundation of trust, and trust is essential to transforming our

organization. The executive team continues processing the results and working together with the organizational

health and diversity team to identify additional actions needed to continue improving our organizational

Workplace

Employee Resource Groups in Action

• Veterans comprise 14 percent of Entergy’s workforce, bringing extensive training and unique

experiences that embody the types of leadership behaviors and attitudes that are key to Entergy’s

success. Members of the Veterans ERG are doing their part to cultivate these diverse sources of

talent by participating in veteran recruiting events and other activities. In 2015, Veterans ERG members

participated in more than 11 recruiting events, reaching more than 1,500 potential veteran job-seekers.

• Entergy engineers, including Ethnically Diverse/Women ERG members, joined the social media

campaign #ilooklikeanengineer to represent their profession and company in fighting gender

stereotypes.

• Recognizing the value of Generational ERG members’ diverse perspectives, the team upgrading

our human resource and financial systems invited ERG members to participate as testers and to

provide insight on the user experience.

35


health. Our emphasis going forward is on improving the culture deeper in the organization by helping

middle managers develop leadership practices.

In 2015, we merged our organizational health efforts and diversity and inclusion programs under one

oversight group. Diversity and inclusion are key elements of the engaged culture we are building at

Entergy. We encourage employees to join one of Entergy’s three employee resource groups and help

bring about positive change in our organization. ERGs are employee-led groups that provide opportunities

to connect with others who share similar interests and backgrounds: generational, veterans and ethnically

diverse/women. Input from our ERGs helps inform decisions on recruiting, onboarding, retention, work/life

balance and leadership development.

We continually evaluate and enhance our approach to diversity in the context of an evolving business

environment. On June 30, 2015, Entergy CEO Leo Denault issued a statement on diversity to employees

following events in Ferguson, Missouri. Denault asked employees; “Help us make this a place where

we respect the differences in those around us and where we band together to be the kind of company

with which we are all proud to be associated.” The following day, all Entergy locations and worksites

participated simultaneously in a two-minute diversity moment of reflection to bring additional awareness

and focus to the importance of diversity. In addition, a 30-minute webcast on diversity featuring executive

leadership was broadcast following the regular employee webcast on second-quarter performance.

ECONOMIC/SOCIAL

Our employee surveys indicate that employees who

participate in corporate volunteer programs are more

engaged. During 2015, employees participated in more

than 260 company-sponsored group volunteer events

in communities served by Entergy. We also encourage

employee volunteerism through our Community Connectors

program, which lets Entergy employees earn grants for their

favorite nonprofit organization by volunteering 20 hours of

their time. In 2015, employees and retirees logged 95,000

hours of volunteer service valued at more than $2.1 million.

ENVIRONMENTAL

A survey of Entergy employees showed nearly 90 percent of employees drive to work alone in their

own vehicle. As part of Entergy’s commitment to clean communities, in 2015, Entergy employees

logged more than 15,000 greener trips through NuRide, the nation’s largest rewards program for

workers who practice green commutes. Green or alternative means of transportation include walking,

cycling, carpooling, vanpooling and public transportation. An estimated 100 tons of emissions were

prevented through employee engagement in this program.

ENVIRONMENTAL

Entergy reduces waste by repurposing unused or obsolete material such as scrap wire and metal that

is recycled, on-road and off-road vehicles and trailers sold through auctions, and miscellaneous stored

materials deemed obsolete such as pumps, valves, electronic parts, office equipment, and more

through investment recovery sales. In 2015, these sales totaled $11 million.

Workplace


36

Recruit, Retain and Develop Our Workforce

Our business is only as good as our people, and at Entergy, we

are fortunate to work with the best in the business. Our talent and

performance management practices are closely aligned with our

business strategy and are designed to recruit and retain a skilled

workforce and to train, develop and promote individuals to achieve

our business objectives. Talent and performance management

supports organizational health improvement by emphasizing key

leadership and employee practices. We have an integrated talent

management system that helps manage recruiting, onboarding,

performance management and succession planning. We use

performance and talent management processes to help employees

develop their capabilities, achieve career goals and contribute to the company’s goals and objectives. Our

employee development strategy includes training and a variety of other resources to support developmental

opportunities. We also engage with external partners to supplement employee development. In 2015, we

completed an effort to align and standardize several key talent management processes, including goal

setting, performance reviews, individual development plans, talent assessment and succession planning.

We continued to enhance our recruiting and development initiatives in 2015. For example, our transmission

group recruited new engineering, project management and construction employees to support its growing

number of infrastructure projects to enhance reliability and serve

new customers. Recruiting efforts included targeting college

recruiting at several universities and an Entergy Interview Day in

New Orleans. Additionally, major training efforts are underway

throughout the transmission group. A new transmission boot camp

that provides craft training graduated 42 employees in 2015, its

second year of operation. Graduates return to their home offices,

where they begin on-the-job training and the certification process.

Competitive total compensation programs are also important

to recruiting and retaining employees. In addition to salary and

benefits, our comprehensive Total Rewards package gives eligible

employees access to a defined contribution savings plan, with

company matching and numerous investment options. Retirement

Workplace

A new transmission boot camp that provides craft training graduated 42 employees in 2015, its second year of operation. Graduates return to their home offices, where they begin on-the-job training and the certification process.

37


plans allow employees to plan for their future. Health and welfare benefits include medical, dental and

vision coverage options, as well as employee assistance, including work-life balance programs. Through

our annual incentive pay plan, we reinforce high levels of individual and company performance through

bonus programs for eligible employees, in addition to annual merit pay increases.

SOCIAL

Entergy is committed to making transformative investments in public education in communities that

we serve. We work with our partners toward specific targets and goals in each of our communities.

In New Orleans, we have invested more than $10 million in charitable contributions and partnering

with schools and nonprofits, educators and administrators to reduce the number of failing public

high schools to none in 2015 from 38 percent in 2011. Despite this achievement, there is much work to

do, but we continue to make progress. In Baton Rouge, we have embarked on a goal with our partners

to create 12,000 high-quality slots for underserved students. The result has been the creation of the

Baton Rouge, Achievement Zone. The first of four schools serving 2,000 was launched in 2014. In 2014,

Entergy pledged $1 million in local match funds necessary to attract $3 million in national foundation

funds to continue the work. Kindergartners who started at these schools were barely able to recognize

10 letters. More than half ended the school year reading at first-grade level.

WHITE – 81% OTHER – 1%ASIAN – 1%

BLACK OR AFRICAN AMERICAN – 15% HISPANIC OR LATINO – 2%

2015 Entergy WorkforceEthnicity

20% FEMALE 80% MALE

2015 Entergy WorkforceGender

U.S. Bureau of Labor Statistics 2015 average for U.S. utilities: Female 22% / Male 78%

BABY BOOMERS BORN 1943-1960 – 28% GENERATION X BORN 1961-1981 – 52%MILLENNIALS BORN 1982 AND AFTER – 20%

2015 Entergy WorkforceAge

13% FEMALE 87% MALE

2015 Entergy Management WorkforceGender

Based on EEQ-1 Code

Workplace

38


RECOGNITION

Entergy received the “Champions of Student Success” award from

City Year, a national educational organization, for our commitment

to helping students and schools succeed.

RECOGNITION

Entergy earned an 85 percent rating on the 2016 Corporate Equality

Index by the Human Rights Campaign Foundation, which ranked us

in the top 20 of energy and utility companies surveyed.

Workplace

2015 PhilanthropyInvested More than $15 Million

ARTS & CULTURE – 8% COMMUNITY IMPROVEMENT – 17%EDUCATION/LITERACY – 35%ENVIRONMENT – 9%POVERTY SOLUTIONS/SOCIAL SERVICES – 28%OTHER – 3%

39


OUR VALUES

Create and Sustain a Safe and Healthy Life Cultivate a Diverse and

Inclusive Work Culture Possess a Winning Spirit

Focus on Our Customers

Grow the Business Be Active

Team Players

Treat People with Respect Aggressively Look for

Better WaysTake Actions to Achieve Results

ABOVE ALL, ACT WITH INTEGRITY

Workplace


40

Governance

Governance

We operate our business with transparency, accountability and integrity. Strong governance enables us to deliver on our commitments and create sustainable value for our stakeholders.

2015 Material Issues and Strategic Imperatives

On an ongoing basis, we analyze material economic, environmental and social issues that impact our

ability to create value for our stakeholders. We use stakeholder input to help identify the most material

issues and guide our strategic imperatives. We engage in a variety of informal and formal communications

with our key stakeholders and other important groups, including owners, lenders and other members

of the financial community, regulators, suppliers, nongovernmental and nonprofit organizations and

professionals in industry, government, labor and education. In 2015, we engaged a third party to assess

our materiality process against five peer companies. Several strengths were identified, including the

detailed description provided for each identified material issue and the clearly articulated link between

material issues, Entergy’s strategic imperatives and the company’s enterprise risk management processes.

Additionally, the assessment noted discussion topics that should be included in the company’s material

issues. Examples of topics added are cybersecurity and climate resiliency.

Material economic issues are identified by monitoring developments in energy demand; energy supply,

including generation technologies and fuels; as well as industry and general business regulation; and

economic conditions. Local, state, regional, national and global economic conditions all impact our

business, and we monitor these conditions. Our material economic issues for 2015 follow:

41


ISSUE WHY IT MATTERS

Financial performance Generating strong, competitive financial returns for our owners affords

us ongoing access to capital needed to invest in our business and provide

low-cost, reliable power for our customers, compensate employees and

invest in our communities.

Economic development Promoting economic development generates energy demand growth

and helps us strengthen our communities; maintain rate stability; fund

investments to modernize our operations, increase efficiency, enhance

reliability and serve new demand; and earn authorized returns.

Energy affordability Maintaining favorable power prices supports growing energy needs and

attracts new economic development to our service areas. Low rates are

particularly important in the states served by Entergy utilities where many

customers live in poverty.

Energy reliability Meeting customers’ expectations for service to be available on demand

requires robust supply solutions, up-to-date technologies and the ability

to invest for the future.

Energy efficiency Complying with local and state regulators’ requirements for Entergy to offer

energy efficiency programs helps customers manage their bills and supports

environmental goals. Select amounts of cost-effective energy efficiency can

free up capital for other productive investment while keeping rates low. Our

financial performance depends on the number of energy efficiency programs

and on our ability to respond to the impact on load growth or obtain cost

recovery mechanisms.

Fuel diversity Balancing fuel diversity and other resource attributes supports price stability,

energy affordability and reliability. Nuclear energy plays an important role in

fuel diversity.

Customer satisfaction Meeting customers’ expectations for affordability, reliability and other

needs, such as outage communications and storm restoration, is a key

component of our mission and may affect approved rates of return and

other regulations.

Security Maintaining continuous business operations depends on our ability to

maintain the safety and security of all Entergy assets and operations.

Cybersecurity Protecting data is critical to our stakeholders but goes beyond data privacy

concerns of most enterprises. Entergy’s complex, interconnected network

of generation, transmission, distribution, control and communication

technologies is part of a national critical infrastructure, demanding even

greater vigilance against cyberattacks.

Regulatory policies Complying with existing regulations, encouraging development of

constructive new regulations and advocating for wholesale market

reform impact numerous operational and investment decisions,

continued operation of nuclear plants and our financial results.

Commodity price risk Delivering on financial performance objectives is impacted by our ability

to accurately identify and quantify underlying commodity price risk in our

business and mitigate it through effective hedging programs and strategies.

Governance

42


Material environmental issues are identified by monitoring developments in environmental legislation,

regulation, case law, agency guidance, industry trends, best management practices and other actions. In

addition, peer groups for air, water, waste and biodiversity facilitate the identification and transfer of

information on material issues. Our material environmental issues for 2015 were:


Climate resiliency Identifying and mitigating climate change financial and physical risks

guides operational and investment decision-making and helps to ensure

more resilient customers and communities. These risks include increased

operational costs due to carbon regulation, increased weather-driven

volatility of business results and adaptation impacts to our facilities and

to our customers.

Air emissions Complying with increased federal and state regulation of various air

pollutants continues to be a driver of business decisions regarding

generation dispatch and design and the location, retirement, purchase,

operation and construction of electric generating units.

Water quality

and quantity

Complying with increased federal and state regulation of water pollutant

discharges, cooling water intake structures for electric generating units

and other water regulations, including the Waters of the United States

rule, continues to be a driver of business decisions regarding generation

dispatch, the design, location, purchase and construction of electric

generating units, transmission and distribution projects and regional

economic development. Identifying future water supply constraints also

impacts these decisions.

Material social issues are identified by monitoring trends and developments such as those among our

employees, owners, regulators, communities and markets, as well as from our own activities in operations,

financial, legal, compliance and supply chain. Our material social issues for 2015 were:


Safety and health Ensuring strong operational safety and top-tier workforce safety practices

are fundamental drivers of our business performance.

Human resource

management

Relying on an aligned, engaged and capable employee culture is

fundamental to meeting our company objectives. Diverse cultural

backgrounds and perspectives of employees and supply chain

partners provide us with a strategic advantage.

Local communities Sustaining business growth depends on healthy and vibrant communities.

Entergy support of local communities through employment, tax base and

community outreach is reciprocated by community support for ongoing

Entergy operations. Community engagement in areas such as emergency

planning is especially important where we have nuclear generating facilities.

Governance

43


Material economic, environmental and social issues are integrated into Entergy’s enterprise risk

management processes. Our ERM processes identify, capture and mitigate risks that have the potential

to impact Entergy’s ability to meet our objectives. More information on ERM is available in the Risk

Management section of this report.

Each year we set clear areas of focus to align and empower our employees and inform other stakeholders.

We use our analyses of material issues to define a limited number of strategic imperatives that we must

accomplish, in addition to the fundamental daily operation of the business, in order to be successful over

the long term. Our strategic imperatives are:

Governance

Aggressively Grow the Utility Business

• Control customer bills

• Make productive investments

• Earn reasonable returns

Manage EWC Transition

• Improve merchant fleet operations

• Manage risk

• Transition to smaller footprint

• Extend Indian Point Energy

Center operation

• Decommission nuclear plants

Transform the Organization

• Improve our culture by leveraging

organizational health and diversity

• Streamline and standardize work

processes, reduce costs and improve

efficiency and effectiveness

• Enable our workforce through

enhanced talent and performance

management

44


Opportunities and Risks

We manage opportunities and risks inherent in our material issues through our strategies, management

policies, procedures and processes and stakeholder engagement.

OPPORTUNITIES AND RISKS

ENTERGY’S MANAGEMENT APPROACH

Ensure nuclear

operations meet highest

standards for safe,

secure operations

Understand event causes leading the NRC to move Arkansas Nuclear One

and Pilgrim Nuclear Power Station to Column 4 of the Reactor Oversight

Process Action Matrix as well as other nuclear performance shortfalls.

Ensure proper implementation of corrective actions to ensure recovery to

Column 1 in regulatory oversight.

Increase utility sales

and revenue

Aggressively pursue economic development and customer sales growth

opportunities at all levels of the organization, which will ultimately help

to mitigate bill effects by spreading fixed costs over a larger customer base.

Helping lift customers out of poverty also supports economic growth in

our region while minimizing utility write-offs.

Develop supply solutions

to meet utility demand

Meet growing load needs with safe, reliable, efficient generation and

transmission, and maximize value of existing assets through operational

excellence. Explore emerging technologies.

Invest and modernize

our utility assets

Streamline processes and deliver long-term savings and customer

satisfaction. Explore new technologies to modernize and digitize the

business and further harden infrastructure.

Integrate external

outreach

Engage with regulators and stakeholders to obtain input on key issues

and secure effective regulatory constructs.

Manage the physical

risks associated with

climate change and

environmental regulation

Implement a comprehensive environmental strategy that includes partnering

with communities and customers to implement adaptation measures and

meeting our voluntary cumulative CO2 stabilization commitment, while

engaging in the regulatory process on applicable environmental issues.

When extreme weather threatens our infrastructure, be prepared with

industry-leading emergency response capabilities.

Manage EWC

fleet operations

Continuously improve operations to achieve industry-leading results

in operations, reliability and safety.

Ensure continued

Indian Point operation

Aggressively pursue Indian Point’s continued operation through all

appropriate regulatory, legal and governmental processes to preserve this

critical asset’s underlying value.

Decommission

nuclear plants

Maintain safety as a top priority while following established NRC-approved

methods for decommissioning nuclear plants. Support employees and

communities through the transition to decommissioning from operating state.

Manage price and

other EWC risks

Implement a dynamic hedging strategy based on informed views on

wholesale power prices. Engage with key stakeholders to achieve desired

regulatory outcomes.

Governance

45


OPPORTUNITIES AND RISKS

ENTERGY’S MANAGEMENT APPROACH

Advocate for wholesale

market improvements

Utilize a principle-based approach to identify flaws or uncompetitive

structures and practices in the wholesale markets in which we operate

and champion constructive changes.

Ensure a safe work

environment

Continuously improve our processes and systems to support employee

and contractor safety.

Operate effectively

as an organization

Make long-term, fundamental improvements in the way we work to ensure

efficient, cost-effective and sustainable practices, including end-to-end

business processes that are aligned with strategic goals and customer needs.

Drive organizational

health

Sustain a work culture that is aligned, adaptable, engaged and able to

get the right things done.

Recruit, retain and

develop a skilled,

engaged workforce

Ensure our approach for training, developing and promoting employees is

aligned to meet current and future business needs; develop human resource

programs to recruit and retain a workforce that has the knowledge, skills

and abilities to achieve our strategic imperatives.

Create a skilled

workforce pipeline

Invest in education and workforce development, including working

with community partners to support regional workforce readiness.

Governance

46


Financial Performance Management

Generating strong financial returns allows us to provide safe and

reliable power to customers over the long term, compensate

employees, invest in our communities and satisfy our owners.

Our overarching financial goal is to deliver top-quartile returns

to our owners, which enables us to attract the capital we need to

serve customers and grow our business. We also strive to maintain

investment-grade ratings at our utilities and Entergy Corporation.

A strong financial and credit position gives us the financial flexibility

to respond to changing market conditions in ways that create

sustainable value for our stakeholders. In addition to investing in

our business, we also put a high priority on providing a dividend

payout comparable to that of our industry peers while maintaining strong credit metrics. Our board sets

our dividend-payout guideline and regularly reviews the guideline and payout. In 2015, our board raised

the dividend 2.4 percent for the first time since 2010 and indicated the objective to maintain a steady,

predictable trajectory in the dividend payout going forward.

Our finance organization, led by our chief financial officer and governed by the finance committee of the

board of directors, oversees our financial performance using prudent policies, strategies, procedures and

investment processes. We proactively manage our tax strategy to ensure we are in compliance with all

laws and regulations.

Governance

47


Risk Management

We use an integrated risk management framework that extends from board oversight to risk identification and

assessment at the business unit level. The framework ensures risks are consistently identified, thoroughly

assessed and effectively managed throughout our business. The audit committee of the board of directors

has primary responsibility for risk management at Entergy at the board level. Our management team provides

regular reports to the committee on compliance, significant legal matters, insurance programs, environmental

risks, and credit and market risks. Within our utility and EWC businesses, we analyze and monitor a full range

of economic, environmental and social risks using our enterprise risk management process.

We use business continuity planning to establish actions that would

ensure continuity and eventual full restoration following a business

disruption. Continuous operation of our business depends on our

ability to maintain the safety and security of all Entergy assets,

employees and operations. We continue to take steps to harden

assets against security threats and engage with local, state and

federal law enforcement agencies on initiatives to share threat

information. We have a cyber incident response plan in place to

help mitigate threats that place sensitive business and customer

information at risk. To mitigate the physical risks associated with

extreme weather events, we have a storm hardening process in

place to prioritize investments. We also use proven emergency

preparedness and response and stakeholder outreach processes.

Our enterprise risk process for major initiatives provides a disciplined approach to the identification,

monitoring and mitigation of top-tier risks to achieving our strategic imperatives, as well as the

aggregation of these risks at an enterprise level.

ENVIRONMENTAL

We account for risks related to greenhouse gas emissions in our business

planning process, using our expectations on future carbon prices and

compliance costs for other potential environmental requirements to

test business planning decisions. Since 2001, Entergy has operated

under voluntary commitments to stabilize our CO2 emissions as part of

our efforts to reduce our environmental footprint, manage the physical

risks of climate change and gain valuable experience in carbon

accounting in anticipation of federal regulation of carbon emissions. Our

current commitment is to maintain CO2 emissions from Entergy-owned

power plants and controllable power purchases through 2020 at

20 percent below year 2000 levels. Our greenhouse gas inventory

is verified by a third party. Through 2015, our cumulative emissions

are more than 9 percent below our 2001–2015 target.

ENVIRONMENTAL/RECOGNITION

Entergy was named to the 2015 Climate “A” List of S&P 500 leaders in climate performance –

the only U.S. utility on the CDP list.

Governance

629.9 691.6

1,094.5

904.4

1,647.6

Cumulative CO2 Emissionsfrom Entergy-Owned Plantsand Controllable Purchases

Million Tons

CUMULATIVE EMISSIONS 2001-2015 CUMULATIVE GOAL 2001-2015“BUSINESS AS USUAL” CASE 2001-2015CUMULATIVE GOAL 2001-2020“BUSINESS AS USUAL” CASE 2001-2020

48


Ethics and Compliance

Our ethics and compliance culture is based on our core value

of Above All, Act with Integrity. This is more than a culture of

compliance, following laws and regulations relevant to our

operations. It includes a culture of integrity, where our employees

are trusted to take the right actions even when there are no rules.

Our ethics and compliance program includes a Code of Entegrity

with guidelines for business ethics and compliance. We also have

codes of business conduct for non-employees and suppliers. We

identify applicable laws and risks of non-compliance. We then

mitigate those risks through preventive and detective measures

and corrective action.

Our practices include addressing compliance issues as they arise. The Entergy Ethics line (toll-free

telephone line or via internet) is available for all employees. It is managed by a third party and permits

anonymous reporting of any ethics violations or concerns.

ENVIRONMENTAL

Environmental compliance is a basic tenet of our comprehensive environmental strategy and our

environmental management system. Our EMS connects overall company objectives to all operating

sites through a common policy and strategy, identification of compliance requirements, a risk

assessment, clear objectives, programs and procedures, training and an annual senior management

review. We validate our EMS and our environmental performance through annual third-party audits

and provide transparency to our stakeholders through extensive environmental performance reporting.

Governance

49


Supply Chain Management

We purchase approximately $3.4 billion annually in materials and services. A robust, sustainable supply

chain is essential to our ability to serve our customers. We manage our supply chain using a defined

supplier code of conduct, initiatives to build a more sustainable supply chain and a program for encouraging

and facilitating greater supplier diversity and programs.

All suppliers are expected to conduct business in a manner

consistent with our supplier code of conduct. We have incentive and

non-incentive scorecards that target multiple performance indicators

for the company and our key suppliers, including sustainability-

related measures. Although specific scorecard measures differ

based on the services and products provided, standard metrics

used to align contractor performance with company objectives

include safety, budget, radiation protection, schedule, reliability

and human performance. Entergy is very active in the Electric

Utility Industry Sustainable Supply Chain Alliance, serving on

the executive committee and key subcommittees. EUISSCA is

known as the leader in establishing a robust and sustainable

electric utility industry supply chain.

Our Entergy supplier diversity and development initiative is designed to secure a diverse base of suppliers

capable of meeting the company’s various procurement needs. In 2014 and 2015, our supplier diversity and

development team hosted a series of diverse supplier forums in Arkansas, Louisiana, Mississippi and Texas

to communicate what Entergy looks for in suppliers and to reaffirm our commitment to local suppliers.

Since its inception in 1987, Entergy’s supplier diversity initiative has accounted for more than $3.5 billion

in contracts and purchase orders awarded to diverse suppliers.

ECONOMIC

We are partnering with a variety of diverse suppliers on several large transmission projects. Our

diverse suppliers often agree to mentor and coach other diverse suppliers through subcontracting,

which helps establish and solidify a pipeline of talented contractors to support our aggressive utility

capital investment plan.

RECOGNITION

Entergy was named one of the top corporations for women-owned businesses by the Women’s

Business Enterprise National Council. The award honors organizations with supplier diversity

programs that create level playing fields for women’s business enterprises.

Governance

50


Advocacy and Political Accountability

We are involved in a number of legislative and regulatory initiatives across a broad spectrum of policy

areas that can immediately and dramatically affect our operations. We take positions on key economic,

environmental, regulatory and social policy issues affecting our business, such as wholesale market

structures, potential environmental regulations and poverty. We also participate in legislative and

regulatory processes through trade organizations.

We encourage employee participation in the political process through the Entergy Corporation Political

Action Committee. ENPAC contributions directly support state and federal political candidates. Entergy

procedures ensure corporate political contributions are made in compliance with all applicable laws and

reported in a timely manner. More than a third of Entergy’s employees are members of EnPower, Entergy’s

grassroots advocacy effort. The organization educates members on issues of importance to the company

and encourages members to get personally involved, including reaching out to public officials.

ENVIRONMENTAL

In 2015, Entergy joined with 27 states – including those in our utility service territory – and many

other companies, trade organizations and unions in filing a legal challenge to EPA’s Clean Power Plan.

We believe this rule reaches beyond EPA’s statutory authority, and that therefore joining this challenge

is the best way to represent the interests of our owners, customers, employees and communities. At

the same time, we are working with states and other stakeholders to develop efficient methods to

comply with the rule, if it survives litigation. Entergy has one of the cleanest generation portfolios in

the country, producing fewer CO2 emissions than 79 of the other top 100 power producers while

ranking number seven for total generation.

SOCIAL

The Earned Income Tax Credit is one of the most effective tools in the fight against poverty, lifting

some 6 million Americans above the poverty level each year. Entergy partners annually with the IRS,

United Way and community organizations to help low-income customers file for and receive their EITC.

In 2015, our goal was to help customers file for and receive $35 million in EITC refunds. We helped

more than 18,000 customers receive $35,113,238 in EITC refunds.

GOVERNANCE/RECOGNITION

Entergy was recognized as a top scorer among companies new to the 2015 CPA-Zicklin Index of

Corporate Political Disclosure and Accountability and placed in the top tier of all companies in

the index. The index provides a comprehensive portrait of how S&P 500 companies are navigating

political spending through disclosure and board oversight.

Governance

51


Financial Highlights


Summary of 2015 Financial Performance

In 2015, we delivered earnings and dividend growth. Our operational earnings

were $6.00 per share, compared with $5.83 per share in 2014 — an increase of

nearly 3 percent. Our utility business delivered strong results in 2015, driven

primarily by productive investments, favorable weather and tax benefits. However,

our EWC business was challenged by persistent low wholesale power prices,

particularly in the Northeast. More information on the strategy and operational

performance of our businesses can be found in the Utility, EWC and Workplace

sections of this report. In 2015, our board of directors approved a 2.4 percent

increase in our dividend, the first increase in more than five years. Our objective

is a steady, predictable trajectory in our dividend payout going forward.

While we made significant progress in 2015, it did not translate into top-quartile

returns for our shareholders. Our 2015 total shareholder return was -18.2 percent,

which ranked in the fourth quartile of our peer group. Positive reaction to

successes and other actions toward the end of 2015 validates the momentum we

see moving into 2016. Positive credit rating actions in 2015 also acknowledge the

strong financial footing of the company. Moody’s assigned the combined Entergy Louisiana a rating of

A2 for its senior secured first mortgage bonds and upgraded its ratings for Entergy New Orleans. At the

same time, Moody’s affirmed its rating for Entergy Corporation and raised the outlook to positive. We are

committed to generating strong financial returns for our owners, as it affords us ongoing access to capital

needed to provide reliable power at reasonable costs for our customers, to compensate our employees

and to invest in our communities.

-18.2%

-6.3%

1.4%

2015 Total Shareholder Return

Source: Bloomberg

ETR PHILADELPHIA UTILITY INDEXS&P 500 INDEX

52



ENTITY STANDARD & POOR’S MOODY’S

RATING OUTLOOK RATING OUTLOOK

Entergy Arkansas 1 A- Positive A2 Stable

Entergy Louisiana 1 A- Positive A2 Stable

Entergy Mississippi 1 A- Positive A3 Stable

Entergy New Orleans 1 A- Positive Baa2 Stable

Entergy Texas 1 A- Positive Baa1 Stable

System Energy Resources 1 A- Positive Baa1 Stable

Entergy Corporation 2 BBB Positive Baa3 Positive

1 Senior secured ratings2 Corporate credit rating

Comparison of Five-Year Cumulative Return

The following graph compares the performance of the common stock of Entergy

Corporation with the Philadelphia Utility Index and the S&P 500 Index (each of

which includes Entergy Corporation) for the last five years ended December 31.

2013 20152014201220112010$ 50

$100

$150

$200

ENTERGY CORPORATIONPHILADELPHIA UTILITY INDEXS&P 500 INDEX

2010 2011 2012 2013 2014 2015

ENTERGY CORPORATION $100.00 $108.29 $ 99.23 $103.54 $149.88 $122.66PHILADELPHIA UTILITY INDEX $100.00 $119.24 $118.57 $131.59 $169.66 $159.05S&P 500 INDEX $100.00 $102.11 $118.44 $156.78 $178.22 $180.67

Assumes $100 invested at the closing price on Dec. 31, 2010, in Entergy Corporation common stock, the Philadelphia Utility Index and the S&P 500 Index, and reinvestment of all dividends.

Source: Bloomberg

Credit Ratings as of March 18, 2016

53



2015 2014 2013 2012 2011

Selected Financial Data:In Thousands, Except Percentages and Per Share Amounts

Operating revenues $ 11,513,251 $ 12,494,921 $ 11,390,947 $ 10,302,079 $ 11,229,073 Net income (loss) $ (156,734) $ 960,257 $ 730,572 $ 868,363 $ 1,367,372 Earnings (loss) per share: Basic $ (0.99) $ 5.24 $ 3.99 $ 4.77 $ 7.59 Diluted $ (0.99) $ 5.22 $ 3.99 $ 4.76 $ 7.55 Dividends declared per share $ 3.34 $ 3.32 $ 3.32 $ 3.32 $ 3.32 Return on common equity (1.83)% 9.58% 7.56% 9.33% 15.43%Book value per share, year-end $ 51.89 $ 55.83 $ 54.00 $ 51.72 $ 50.81 Total assets $ 44,647,681 $ 46,414,455 $ 43,290,290 $ 43,087,339 $ 40,597,676 Long-term obligations (a) $ 13,456,742 $ 12,627,180 $ 12,265,971 $ 12,026,207 $ 10,164,622

Utility Electric Operating Revenues: In Millions

Residential $ 3,518 $ 3,555 $ 3,396 $ 3,022 $ 3,369 Commercial 2,516 2,553 2,415 2,174 2,333 Industrial 2,462 2,623 2,405 2,034 2,307 Governmental 223 227 218 198 205

Total retail 8,719 8,958 8,434 7,428 8,214 Sales for resale 249 330 210 179 216 Other 341 304 298 264 244

Total $ 9,309 $ 9,592 $ 8,942 $ 7,871 $ 8,674

Utility Billed Electric Energy Sales: In GWh

Residential 36,068 35,932 35,169 34,664 36,684 Commercial 29,348 28,827 28,547 28,724 28,720 Industrial 44,382 43,723 41,653 41,181 40,810 Governmental 2,514 2,428 2,412 2,435 2,474

Total retail 112,312 110,910 107,781 107,004 108,688 Sales for resale 9,274 9,462 3,020 3,200 4,111

Total 121,586 120,372 110,801 110,204 112,799

Entergy Wholesale Commodities: Operating Revenues (In Millions) $ 2,062 $ 2,719 $ 2,313 $ 2,326 $ 2,414

Billed Electric Energy Sales (GWh) 39,745 44,424 45,127 46,178 43,497

(a) Includes long-term debt (excluding currently maturing debt), non-current capital lease obligations and subsidiary preferred stock without sinking fund that is not presented as equity on the balance sheet.

Five-Year Summary of Selected Financial and Operating Data

54


For the Years Ended December 31,

In Thousands, Except Share Data 2015 2014 2013

Operating Revenues

Electric $ 9,308,678 $ 9,591,902 $ 8,942,360 Natural gas 142,746 181,794 154,353 Competitive businesses 2,061,827 2,721,225 2,294,234

Total 11,513,251 12,494,921 11,390,947

Operating Expenses

Operating and Maintenance: Fuel, fuel-related expenses, and gas purchased for resale 2,452,171 2,632,558 2,445,818 Purchased power 1,390,805 1,915,414 1,554,332 Nuclear refueling outage expenses 251,316 267,679 256,801 Other operation and maintenance 3,354,981 3,310,536 3,331,934 Asset write-offs, impairments, and related charges 2,104,906 179,752 341,537 Decommissioning 280,272 272,621 242,104 Taxes other than income taxes 619,422 604,606 600,350 Depreciation and amortization 1,337,276 1,318,638 1,261,044 Other regulatory charges (credits) – net 175,304 (13,772) 45,597

Total 11,966,453 10,488,032 10,079,517

Gain on sale of asset / business 154,037 – 43,569

Operating Income (Loss) (299,165) 2,006,889 1,354,999

Other Income

Allowance for equity funds used during construction 51,908 64,802 66,053 Interest and investment income 187,062 147,686 199,300 Miscellaneous – net (95,997) (42,016) (59,762)

Total 142,973 170,472 205,591

Interest Expense

Interest expense 670,096 661,083 629,537 Allowance for borrowed funds used during construction (26,627) (33,576) (25,500)

Total 643,469 627,507 604,037

Income (Loss) Before Income Taxes (799,661) 1,549,854 956,553 Income taxes (642,927) 589,597 225,981

Consolidated Net Income (Loss) (156,734) 960,257 730,572 Preferred dividend requirements of subsidiaries 19,828 19,536 18,670

Net Income (Loss) Attributable to Entergy Corporation $ (176,562) $ 940,721 $ 711,902

Earnings (loss) per average common share: Basic $ (0.99) $ 5.24 $ 3.99 Diluted $ (0.99) $ 5.22 $ 3.99 Basic average number of common shares outstanding 179,176,356 179,506,151 178,211,192Diluted average number of common shares outstanding 179,176,356 180,296,885 178,570,400

Consolidated Statements of Operations (unaudited)


55



In Thousands 2015 2014 2013

Net Income (Loss) $ (156,734) $ 960,257 $ 730,572 Other Comprehensive Income (Loss) Cash flow hedges net unrealized gain (loss) (net of tax expense (benefit)

of $3,752, $96,141, and ($87,940)) 7,852 179,895 (161,682) Pension and other postretirement liabilities (net of tax expense (benefit)

of $61,576, ($152,763), and $220,899) 103,185 (281,566) 302,489 Net unrealized investment gains (losses) (net of tax expense (benefit)

of ($45,904), $66,594, and $118,878) (59,138) 89,439 122,709 Foreign currency translation (net of tax expense (benefit) of ($345), ($404), and ($131)) (641) (751) 243

Other comprehensive income (loss) 51,258 (12,983) 263,759

Comprehensive Income (Loss) (105,476) 947,274 994,331 Preferred dividend requirements of subsidiaries 19,828 19,536 18,670

Comprehensive Income (Loss) Attributable to Entergy Corporation $ (125,304) $ 927,738 $ 975,661

Consolidated Statements of Comprehensive Income (Loss) (unaudited)


56




Operating Activities

Consolidated net income (loss) $ (156,734) $ 960,257 $ 730,572 Adjustments to reconcile consolidated net income (loss) to net cash flow provided by operating activities: Depreciation, amortization, and decommissioning, including nuclear fuel amortization 2,117,236 2,127,892 2,012,076 Deferred income taxes, investment tax credits, and non-current taxes accrued (820,350) 596,935 311,789 Asset write-offs, impairments and related charges 2,104,906 123,527 341,537 Gain on sale of asset / business (154,037) – (43,569) Changes in working capital: Receivables 38,152 98,493 (180,648) Fuel inventory (12,376) 3,524 4,873 Accounts payable (135,211) (12,996) 94,436 Prepaid taxes and taxes accrued 81,969 (62,985) (142,626) Interest accrued (11,445) 25,013 (3,667) Deferred fuel costs 298,725 (70,691) (4,824) Other working capital accounts (113,701) 112,390 (66,330) Changes in provisions for estimated losses 42,566 301,871 (248,205) Changes in other regulatory assets 262,317 (1,061,537) 1,105,622 Changes in other regulatory liabilities 61,241 87,654 397,341 Changes in pensions and other postretirement liabilities (446,418) 1,308,166 (1,433,663) Other 134,344 (647,952) 314,505

Net cash flow provided by operating activities 3,291,184 3,889,561 3,189,219

Investing Activities

Construction/capital expenditures (2,500,860) (2,119,191) (2,287,593)Allowance for equity funds used during construction 53,635 68,375 69,689 Nuclear fuel purchases (493,604) (537,548) (517,825)Payment for purchase of plant – – (17,300)Proceeds from sale of assets and businesses 487,406 10,100 147,922 Insurance proceeds received for property damages 24,399 40,670 –Changes in securitization account (5,806) 1,511 155 NYPA value sharing payment (70,790) (72,000) (71,736)Payments to storm reserve escrow account (69,163) (276,057) (7,716)Receipts from storm reserve escrow account 5,916 – 260,279 Decrease (increase) in other investments 571 46,983 (82,955)Litigation proceeds for reimbursement of spent nuclear fuel storage costs 18,296 – 21,034 Proceeds from nuclear decommissioning trust fund sales 2,492,176 1,872,115 2,031,552 Investment in nuclear decommissioning trust funds (2,550,958) (1,989,446) (2,147,099)

Net cash flow used in investing activities (2,608,782) (2,954,488) (2,601,593)

Consolidated Statements of Cash Flows (unaudited)


57


Consolidated Statements of Cash Flows (unaudited) (continued)



Financing Activities

Proceeds from the issuance of: Long-term debt $ 3,502,189 $ 3,100,069 $ 3,746,016 Preferred stock of subsidiary 107,426 – 24,249 Treasury stock 24,366 194,866 24,527 Retirement of long-term debt (3,461,518) (2,323,313) (3,814,666)Repurchase of common stock (99,807) (183,271) –Repurchase/redemptions of preferred stock (94,285) – –Changes in credit borrowings and commercial paper – net (104,047) (448,475) 250,889 Other (9,136) 23,579 –Dividends paid: Common stock (598,897) (596,117) (593,037) Preferred stock (19,758) (19,511) (18,802)Net cash flow used in financing activities (753,467) (252,173) (380,824)Effect of exchange rates on cash and cash equivalents – – (245)

Net increase (decrease) in cash and cash equivalents (71,065) 682,900 206,557 Cash and cash equivalents at beginning of period 1,422,026 739,126 532,569

Cash and cash equivalents at end of period $ 1,350,961 $ 1,422,026 $ 739,126

Supplemental Disclosure of Cash Flow Information:

Cash paid during the period for: Interest – net of amount capitalized $ 663,630 $ 611,376 $ 570,212 Income taxes $ 103,589 $ 77,799 $ 127,735


58


December 31,

In Thousands 2015 2014

Current Assets Cash and cash equivalents: Cash $ 63,497 $ 131,327 Temporary cash investments 1,287,464 1,290,699

Total cash and cash equivalents 1,350,961 1,422,026

Accounts receivable: Customer 608,491 596,917 Allowance for doubtful accounts (39,895) (35,663) Other 178,364 220,342 Accrued unbilled revenues 321,940 321,659

Total accounts receivable 1,068,900 1,103,255

Deferred fuel costs – 155,140 Accumulated deferred income taxes – 27,783 Fuel inventory – at average cost 217,810 205,434 Materials and supplies – at average cost 873,357 918,584 Deferred nuclear refueling outage costs 211,512 214,188 Prepayments and other 344,872 343,223

Total 4,067,412 4,389,633

Other Property and Investments Investment in affiliates – at equity 4,341 36,234 Decommissioning trust funds 5,349,953 5,370,932 Non-utility property – at cost (less accumulated depreciation) 219,999 213,791 Other 468,704 405,169

Total 6,042,997 6,026,126

Property, Plant, and Equipment Electric 44,467,159 44,881,419 Property under capital lease 952,465 945,784 Natural gas 392,032 377,565 Construction work in progress 1,456,735 1,425,981 Nuclear fuel 1,345,422 1,542,055

Total Property, Plant, and Equipment 48,613,813 49,172,804 Less – accumulated depreciation and amortization 20,789,452 20,449,858

Property, Plant, and Equipment – Net 27,824,361 28,722,946

Deferred Debits and Other Assets Regulatory assets: Regulatory asset for income taxes – net 775,528 836,064 Other regulatory assets (includes securitization property of $714,044 as of December 31, 2015,

and $724,839 as of December 31, 2014) 4,704,796 4,968,553 Deferred fuel costs 238,902 238,102 Goodwill 377,172 377,172 Accumulated deferred income taxes 54,903 48,351 Other 561,610 807,508

Total 6,712,911 7,275,750

Total Assets $ 44,647,681 $ 46,414,455

Consolidated Balance Sheets – Assets (unaudited)


59


Consolidated Balance Sheets – Liabilities and Equity (unaudited)

December 31,

In Thousands 2015 2014

Current Liabilities

Currently maturing long-term debt $ 214,374 $ 899,375 Notes payable and commercial paper 494,348 598,407 Accounts payable 1,071,798 1,166,431 Customer deposits 419,407 412,166 Taxes accrued 210,077 128,108 Accumulated deferred income taxes – 38,039 Interest accrued 194,565 206,010 Deferred fuel costs 235,986 91,602 Obligations under capital leases 2,709 2,508 Pension and other postretirement liabilities 62,513 57,994 Other 184,181 248,251

Total 3,089,958 3,848,891

Non-Current Liabilities

Accumulated deferred income taxes and taxes accrued 8,306,865 9,133,161 Accumulated deferred investment tax credits 234,300 247,521 Obligations under capital leases 27,001 29,710 Other regulatory liabilities 1,414,898 1,383,609 Decommissioning and asset retirement cost liabilities 4,790,187 4,458,296 Accumulated provisions 460,727 418,128 Pension and other postretirement liabilities 3,187,357 3,638,295 Long-term debt (includes securitization bonds of $774,696 as of December 31, 2015,

and $776,817 as of December 31, 2014) 13,111,556 12,386,710 Other 449,856 557,649

Total 31,982,747 32,253,079

Commitments and Contingencies

Subsidiaries’ preferred stock without sinking fund 318,185 210,760

Equity

Common Shareholders’ Equity: Common stock, $.01 par value, authorized 500,000,000 shares; issued 254,752,788 shares in 2015 and in 2014 2,548 2,548 Paid-in capital 5,403,758 5,375,353 Retained earnings 9,393,913 10,169,657 Accumulated other comprehensive income (loss) 8,951 (42,307)Less – treasury stock, at cost (76,363,763 shares in 2015 and 75,512,079 shares in 2014) 5,552,379 5,497,526

Total common shareholders’ equity 9,256,791 10,007,725

Subsidiaries’ preferred stock without sinking fund – 94,000

Total 9,256,791 10,101,725

Total Liabilities and Equity $ 44,647,681 $ 46,414,455


60


Common Shareholders’ Equity

Accumulated Subsidiaries’ OtherFor the Years Ended Preferred Common Treasury Paid-in Retained ComprehensiveDecember 31, 2015, 2014, and 2013 Stock Stock Stock Capital Earnings Income (Loss) Total

In thousands

Balance at December 31, 2012 $ 94,000 $ 2,548 $ (5,574,819) $ 5,357,852 $ 9,704,591 $ (293,083) $ 9,291,089

Consolidated net income (a) 18,670 – – – 711,902 – 730,572 Other comprehensive income – – – – – 263,759 263,759 Common stock issuances related

to stock plans – – $40,877 10,279 – – 51,156 Common stock dividends declared – – – – (591,440) – (591,440)Preferred dividend requirements

of subsidiaries (a) (18,670) – – – – – (18,670)


Consolidated net income (a) 19,536 – – – 940,721 – 960,257 Other comprehensive loss – – – – – (12,983) (12,983)Common stock repurchases – – (183,271) – – – (183,271)Common stock issuances related

to stock plans – – $219,687 7,222 – – 226,909 Common stock dividends declared – – – – (596,117) – (596,117)Preferred dividend requirements



Consolidated net income (loss) (a) 19,828 – – – (176,562) – (156,734)Other comprehensive income – – – – – 51,258 51,258 Common stock repurchases – – (99,807) – – – (99,807)Preferred stock repurchases/

redemptions (94,000) – – – (285) – (94,285)Common stock issuances related

to stock plans – – 44,954 28,405 – – 73,359Common stock dividends declared – – – – (598,897) – (598,897)Preferred dividend requirements


Balance at December 31, 2015 – $ 2,548 $ (5,552,379) $ 5,403,758 $ 9,393,913 $ 8,951 $ 9,256,791

(a) Consolidated net income and preferred dividend requirements of subsidiaries for 2015, 2014, and 2013 include $14.9 million, $12.9 million, and $12.0 million, respectively, of preferred dividends on subsidiaries’ preferred stock without sinking fund that is not presented as equity.

Consolidated Statements of Changes in Equity (unaudited)


61


Key Performance Indicators


ECONOMIC/OPERATIONAL

-18.2%

-6.3%

1.4%

2015 Total Shareholder Return

Source: Bloomberg

ETR PHILADELPHIA UTILITY INDEXS&P 500 INDEX

ENTITY STANDARD & POOR’S MOODY’S

RATING OUTLOOK RATING OUTLOOK

Entergy Arkansas 1 A- Positive A2 Stable

Entergy Louisiana 1 A- Positive A2 Stable

Entergy Mississippi 1 A- Positive A3 Stable

Entergy New Orleans 1 A- Positive Baa2 Stable

Entergy Texas 1 A- Positive Baa1 Stable

System Energy Resources 1 A- Positive Baa1 Stable

Entergy Corporation 2 BBB Positive Baa3 Positive

1 Senior secured ratings2 Corporate credit rating

Comparison of Five-Year Cumulative Return

The following graph compares the performance of the common stock of Entergy

Corporation with the Philadelphia Utility Index and the S&P 500 Index (each of

which includes Entergy Corporation) for the last five years ended December 31.

2013 20152014201220112010$ 50

$100

$150

$200

ENTERGY CORPORATIONPHILADELPHIA UTILITY INDEXS&P 500 INDEX

2010 2011 2012 2013 2014 2015

ENTERGY CORPORATION $100.00 $108.29 $ 99.23 $103.54 $149.88 $122.66PHILADELPHIA UTILITY INDEX $100.00 $119.24 $118.57 $131.59 $169.66 $159.05S&P 500 INDEX $100.00 $102.11 $118.44 $156.78 $178.22 $180.67

Assumes $100 invested at the closing price on Dec. 31, 2010, in Entergy Corporation common stock, the Philadelphia Utility Index and the S&P 500 Index, and reinvestment of all dividends.

Source: Bloomberg

Credit Ratings as of March 18, 2016

62




Percent of randomly selected customers whoresponded to the Bellomy Perception Survey with a score of 8, 9 or 10 when asked how satisfied they are with Entergy as a utility company on a scale of 0-10, 10 being the highest

‘13 ‘14 ‘15

77% 75% 74%

Bellomy Perception Survey

System average interruption frequency index: average number per customer per year, excluding the impact of major storm activity

‘11 ‘12 ‘13 ‘14 ‘15

1.611.68

1.52 1.581.69

Outage Frequency

Entergy utility system weighted average; varies by utility operating company

‘11 ‘12 ‘13 ‘14 ‘15

96.4691.58

101.02 104.26 102.15

Average Monthly Residential Bill1,000 kWh Usage/Month

In Dollars

‘11 ‘12 ‘13 ‘14 ‘15

0.57

0.78

0.53

0.880.78

Employee Year-Ending Recordable Accident Index

‘11 ‘12 ‘13 ‘14 ‘15

0.990.85

1.22

0.91 0.85

Contractor Year-Ending Recordable Accident Index

System average interruption duration index: average minutes per customer per year, excluding the impact of major storm activity

‘11 ‘12 ‘13 ‘14 ‘15

196 196181

194214

Outage Duration

70%99%

2015 MISO Performance

ON-TIME STARTS: Percentage of generating unit starts that were within or equal to +/-30 minutes of the time instructed by MISO

ON-TIME STARTS: Percentage of generating unit starts that were within or equal to +/-30 minutes of the time instructed by MISO

WITHIN TRAMLINES: Percentage of time fossil generating units remained within the desired MW load bandwidth as set by MISO

WITHIN TRAMLINES: Percentage of time fossil generating units remained within the desired MW load bandwidth as set by MISO

Recordable accident index: number of recordable accidents per 100 full-time equivalents Recordable accidents include fatalities, lost-time accidents, restricted duty accidents and medical attentions

63




Capacity factor: normalized percentage of the period that the nuclear plants generate power

‘11 ‘12 ‘13 ‘14 ‘15

9389 89 91 91

EWC Nuclear FleetCapacity Factor

ENVIRONMENTAL

Average CO2 Emission Rate from Entergy-Owned Plants

Pounds per kWh

‘11 ‘12 ‘13 ‘14 ‘15

0.60 0.59 0.58 0.56 0.54

629.9 691.6

1,094.5

904.4

1,647.6

Cumulative CO2 Emissionsfrom Entergy-Owned Plantsand Controllable Purchases

Million Tons

CUMULATIVE EMISSIONS 2001-2015 CUMULATIVE GOAL 2001-2015“BUSINESS AS USUAL” CASE 2001-2015CUMULATIVE GOAL 2001-2020“BUSINESS AS USUAL” CASE 2001-2020

Utility Nuclear FleetCapability Factor

‘11 ‘12 ‘13 ‘14 ‘15

9288

8190 90

Capability factor: percentage of the maximum energy generation a plant is capable of supplying to the grid, limited only by factors within control of plant management

Number of NPDES* Exceedances

* National Pollutant Discharge Elimination System

‘11 ‘12 ‘13 ‘14 ‘15

1916

47

20

29

28%

13%

34%

25%

29%

11%

33%

27%

25%

10%

39%

26%

28%

11%

33%

28%

27%

7%31%

35%

Generation Sources Usedto Meet Utility Demand

PURCHASED POWER COAL

NUCLEARGAS

‘11 ‘12 ‘13 ‘14 ‘15

64


SOCIAL


WHITE – 81% OTHER – 1%ASIAN – 1%

BLACK OR AFRICAN AMERICAN – 15% HISPANIC OR LATINO – 2%

2015 Entergy WorkforceEthnicity

BABY BOOMERS BORN 1943-1960 – 28% GENERATION X BORN 1961-1981 – 52%MILLENNIALS BORN 1982 AND AFTER – 20%

2015 Entergy WorkforceAge

2015 PhilanthropyInvested More than $15 Million

ARTS & CULTURE – 8% COMMUNITY IMPROVEMENT – 17%EDUCATION/LITERACY – 35%ENVIRONMENT – 9%POVERTY SOLUTIONS/SOCIAL SERVICES – 28%OTHER – 3%

Employee andRetiree Volunteerism

Hours in Thousands

‘11 ‘12 ‘13 ‘14 ‘15

49

85

100

65

95

20% FEMALE 80% MALE

2015 Entergy WorkforceGender

U.S. Bureau of Labor Statistics 2015 average for U.S. utilities: Female 22% / Male 78%

13% FEMALE 87% MALE

2015 Entergy Management WorkforceGender

Based on EEQ-1 Code

65


About Entergy

About Entergy

Entergy Corporation (NYSE: ETR) is an integrated energy company engaged primarily in electric power

production and retail distribution operations. Entergy owns and operates power plants with approximately

30,000 megawatts of electric generating capacity, including nearly 10,000 megawatts of nuclear power.

Entergy delivers electricity to 2.8 million utility customers in Arkansas, Louisiana, Mississippi and Texas.

Entergy has annual revenues of approximately $11.5 billion and more than 13,000 employees.

Utility

Entergy provides retail and wholesale power to customers in four states through five utility operating

companies: Entergy Arkansas, Inc.; Entergy Louisiana, LLC; Entergy Mississippi, Inc.; Entergy New

Orleans, Inc.; and Entergy Texas, Inc. We also deliver natural gas services to 199,000 customers in

or around New Orleans and Baton Rouge, Louisiana, through two of our utility companies.

Wholesale Generation

Entergy provides power to wholesale customers from five nuclear units located in the northern United

States and from several fossil and wind power plants through our EWC business. This business also

provides services to other nuclear power plant owners.

Utility – A traditional regulated utility

• 5 electric utilities in 4 contiguous states

• 2.8 million utility customers

• 21,000 MW generating capacity

• 15,500 miles of transmission lines

Utility service territory

Entergy Wholesale Commodities – A primarily nuclear commodity-sensitive wholesale power generation business

Nuclear units

66


ENTERGY BY THE NUMBERS IN 2015

GAAP Revenues $11.5 billion

GAAP Net Income (Loss) $(156.7) million

GAAP Earnings (Loss) Per Share $(0.99)

Total Assets $44.6 billion

Employees at Year-end 13,579

Utility Retail Electric Customers 2.8 million

Utility Billed Retail Electric Energy Sales 121,586 GWh

Interconnected High-Voltage Transmission Lines 15,500 circuit miles

EWC Billed Electric Energy Sales 39,745 GWh

Total Owned and Leased Generating Capability By Fuel Source in Megawatts:

Nuclear 9,604

Gas/Oil 14,004

Coal 2,429

Hydro 73

Wind 80

Awards and Recognition

Entergy’s work to create value for our owners, customers, employees and communities received widespread

recognition in 2015, including:

Arbor Day Foundation – Tree Line USA UtilityThe Arbor Day Foundation named Entergy Corporation a Tree Line USA utility for the 10th consecutive

year. Tree Line USA, a partnership between the foundation and the National Association of State Foresters,

recognizes public and private utilities for pursuing practices that protect and enhance America’s urban trees.

CDP S&P 500 Climate “A” List and Climate Disclosure Leadership IndexEntergy was recognized as a leader among S&P 500 companies by CDP for our actions to address climate

change. Entergy was the only U.S. utility included on the Climate “A” list, and this was the third consecutive

year Entergy was named to this list. Entergy was also one of four U.S. utilities named to the CDP U.S. Climate

Disclosure Leadership Index. Since 2008, Entergy has been included on the disclosure index seven times.

City Year – Champions of Student Success AwardEntergy received the inaugural Champions of Student Success Award from City Year, a national educational

organization, in recognition of our commitment to helping students and schools succeed. The annual award

is designed to recognize extraordinary efforts of champions and partners who have generated transformative

impact on the schools and students that City Year serves.

Corporate Responsibility Magazine – 100 Best Corporate CitizensCorporate Responsibility Magazine named Entergy one of the country’s 100 best corporate citizens. The

publication’s 100 Best Corporate Citizens list includes companies who meet more than 300 criteria in seven

categories of business performance. Entergy ranked 36, the highest rating for electric utilities. It was the

sixth time Entergy has been included on the list.

About Entergy

67


Dow Jones Sustainability North America IndexEntergy was named to the Dow Jones Sustainability North America Index, one of four U.S. electric utility

companies designated a sustainability leader on the index. This is the 14th consecutive year the Dow

Jones Sustainability Index has included Entergy on either its World or North America index or both.

Entergy earned top scores in five of the 25 evaluated areas: antitrust policy, scorecards/measurement

systems, climate strategy, water-related risks and corporate citizenship/philanthropy.

Edison Electric Institute – Emergency Assistance and Emergency Recovery AwardsThe Edison Electric Institute honored Entergy with the EEI Emergency Assistance and Recovery Awards,

recognizing our restoration efforts on behalf of our customers and assistance provided to a neighboring

utility company recovering from severe summer storms in 2015. This is the 18th consecutive year Entergy

has received an EEI storm restoration award. Including this year’s honors, Entergy has received 24 awards

from EEI for our restoration and mutual assistance work, and we are the only utility in the country to be

recognized every year since the inception of the awards.

Site Selection Magazine – Top 10 Utilities in Economic DevelopmentEntergy was named one of the nation’s top 10 utilities in economic development by Site Selection magazine

for our efforts to help attract nearly $14.4 billion in projects that could result in as many as 7,200 jobs

across our four-state utility service territory. It was the eighth straight year Entergy was named to the

magazine’s list.

Women’s Business Enterprise National Council – A Top Corporation for Women-Owned BusinessesEntergy was named one of the top corporations for women-owned businesses by the Women’s Business

Enterprise National Council. The national award honors organizations with supplier diversity programs

that create level playing fields for women’s business enterprises.

Our Reporting

This integrated report presents Entergy’s 2015 economic, environmental and social performance. Further

detail is provided in Entergy’s GRI index and performance data table, which are available at entergy.com/

sustainability. In 2015, we applied for and received Application Level A verification from GRI, the highest

compliance level. We continue to review our reporting and disclosures and make improvements as

appropriate to offer greater transparency on Entergy’s performance to our stakeholders.

This report includes 2015 data from Entergy’s two primary business segments: utility and Entergy

Wholesale Commodities, both of which operate entirely within the United States. Assurance of financial

data in this report comes from our internal controls over financial reporting, which Entergy management

assesses annually using criteria set forth by the Committee of Sponsoring Organizations of the Treadway

Commission in Internal Control—Integrated Framework. Deloitte & Touche LLP has issued an attestation

report on the effectiveness of Entergy’s internal control over financial reporting as of Dec. 31, 2015.

Our 2015 greenhouse gas inventory was verified by an independent third party in accordance

with international standards (ISO 14064.1) in early 2016. The GHG inventory is available at

americancarbonregistry.org and entergy.com/environment.

We invite you to engage with us by visiting entergy.com/integratedcontact. We welcome your feedback

and suggestions to help us continue to improve our reporting.

About Entergy

68


Forward-Looking Information and Regulation G Compliance

In this report and from time to time, Entergy Corporation makes statements as a registrant concerning

its expectations, beliefs, plans, objectives, goals, strategies and future events or performance. Such

statements are “forward-looking statements” within the meaning of the Private Securities Litigation

Reform Act of 1995. Words such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “intend,”

“expect,” “estimate,” “continue,” “potential,” “plan,” “predict,” “forecast,” and other similar words or

expressions are intended to identify forward-looking statements but are not the only means to identify

these statements. Although Entergy believes that these forward-looking statements and the underlying

assumptions are reasonable, it cannot provide assurance that they will prove correct. Any forward-

looking statement is based on information current as of the date of this report and speaks only as of

the date on which such statement is made. Except to the extent required by the federal securities laws,

Entergy undertakes no obligation to publicly update or revise any forward-looking statements, whether

as a result of new information, future events or otherwise.

Forward-looking statements involve a number of risks and uncertainties. There are factors that could

cause actual results to differ materially from those expressed or implied in the forward-looking statements,

including (a) those factors discussed or incorporated by reference in Item 1A. Risk Factors contained in

the Form 10-K for the year ended Dec. 31, 2015, (b) those factors discussed or incorporated by reference

in Management’s Financial Discussion and Analysis and (c) the following factors (in addition to others

described elsewhere in this report and in subsequent securities filings):

• resolution of pending and future rate cases and negotiations, including various performance-based

rate discussions, Entergy’s utility supply plan and recovery of fuel and purchased power costs;

• the termination of Entergy Arkansas’ participation in the System Agreement, which occurred in

December 2013, the termination of Entergy Mississippi’s participation in the System Agreement,

which occurred in November 2015, and the termination of Entergy Texas’, Entergy New Orleans’

and Entergy Louisiana’s participation in the System Agreement, which will occur on August 31, 2016,

and will result in the termination of the System Agreement in its entirety pursuant to a settlement

agreement approved by FERC in December 2015;

• regulatory and operating challenges and uncertainties and economic risks associated with the

Utility operating companies’ move to MISO, which occurred in December 2013, including the effect

of current or projected MISO market rules and market and system conditions in the MISO markets,

the allocation of MISO system transmission upgrade costs, and the effect of planning decisions that

MISO makes with respect to future transmission investments by the Utility operating companies;

• changes in utility regulation, including the beginning or end of retail and wholesale competition,

the ability to recover net utility assets and other potential stranded costs, and the application of

more stringent transmission reliability requirements or market power criteria by the FERC;

• changes in the regulation or regulatory oversight of Entergy’s nuclear generating facilities and nuclear

materials and fuel, including with respect to the planned potential or actual shutdown of nuclear

generating facilities owned or operated by Entergy Wholesale Commodities, and the effects of new

or existing safety or environmental concerns regarding nuclear power plants and nuclear fuel;

• resolution of pending or future applications, and related regulatory proceedings and litigation, for

license renewals or modifications or other authorizations required of nuclear generating facilities;

and the effect of public and political opposition on these applications, regulatory proceedings

and litigation;

About Entergy

69


• the performance of and deliverability of power from Entergy’s generation resources, including the

capacity factors at its nuclear generating facilities;

• Entergy’s ability to develop and execute on a point of view regarding future prices of electricity,

natural gas and other energy-related commodities;

• prices for power generated by Entergy’s merchant generating facilities and the ability to hedge, meet

credit support requirements for hedges, sell power forward or otherwise reduce the market price risk

associated with those facilities, including the Entergy Wholesale Commodities nuclear plants;

• the prices and availability of fuel and power Entergy must purchase for its Utility customers,

and Entergy’s ability to meet credit support requirements for fuel and power supply contracts;

• volatility and changes in markets for electricity, natural gas, uranium, emissions allowances and

other energy-related commodities, and the effect of those changes on Entergy and its customers;

• changes in law resulting from federal or state energy legislation or legislation subjecting energy

derivatives used in hedging and risk management transactions to governmental regulation;

• changes in environmental, tax and other laws and regulations, including requirements for reduced

emissions of sulfur dioxide, nitrogen oxide, greenhouse gases, mercury, thermal energy and other

regulated air and water emissions, and changes in costs of compliance with environmental and

other laws and regulations;

• uncertainty regarding the establishment of interim or permanent sites for spent nuclear fuel and

nuclear waste storage and disposal and the level of spent fuel and nuclear waste disposal fees

charged by the U.S. government or other providers related to such sites;

• variations in weather and the occurrence of hurricanes and other storms and disasters, including

uncertainties associated with efforts to remediate the effects of hurricanes, ice storms or other

weather events and the recovery of costs associated with restoration, including accessing funded

storm reserves, federal and local cost recovery mechanisms, securitization and insurance;

• effects of climate change;

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

and diversion;

• Entergy’s ability to manage its capital projects and operation and maintenance costs;

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

• the economic climate, and particularly economic conditions in Entergy’s Utility service area and the

Northeast United States and events and circumstances that could influence economic conditions in

those areas, including power prices, and the risk that anticipated load growth may not materialize;

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

• changes in the financial markets, particularly those affecting the availability of capital and Entergy’s

ability to refinance existing debt, execute share repurchase programs and fund investments

and acquisitions;

• actions of rating agencies, including changes in the ratings of debt and preferred stock, changes

in general corporate ratings and changes in the rating agencies’ ratings criteria;

About Entergy

70


• changes in inflation and interest rates;

• the effect of litigation and government investigations or proceedings;

• changes in technology, including with respect to new, developing or alternative sources of generation;

• the effects of threatened or actual terrorism, cyberattacks or data security breaches, including

increased security costs, accidents and war or a catastrophic event such as a nuclear accident

or a natural gas pipeline explosion;

• Entergy’s ability to attract and retain talented management and directors;

• changes in accounting standards and corporate governance;

• declines in the market prices of marketable securities and resulting funding requirements and the

effects on benefit costs for Entergy’s defined benefit pension and other postretirement benefit plans;

• future wage and employee benefit costs, including changes in discount rates and returns on benefit

plan assets;

• changes in decommissioning trust fund values or earnings or in the timing of, requirements for,

or cost to decommission nuclear plant sites;

• the implementation of the shutdown of Pilgrim and FitzPatrick and the related decommissioning

of those plants and Vermont Yankee;

• the effectiveness of Entergy’s risk management policies and procedures and the ability and

willingness of its counterparties to satisfy their financial and performance commitments;

• factors that could lead to impairment of long-lived assets and

• the ability to successfully complete merger, acquisition or divestiture plans, regulatory or other

limitations imposed as a result of a merger, acquisition or divestiture and the success of the business

following a merger, acquisition or divestiture.

About Entergy

71


Regulation G

This report includes the non-GAAP financial measures of operational earnings per share and utility

normalized return on equity. The reconciliation of these measures to the most directly comparable

GAAP measures are below.

GAAP to Non-GAAP Reconciliation

Earnings (Loss) Per Share 2015 2014

(per share in dollars)As-reported (0.99) 5.22Less special items: HCM implementation expenses – (0.05) Decisions to close Vermont Yankee, FitzPatrick and Pilgrim (5.99) (0.56) Palisades asset impairment and related write-offs (1.43) – Top Deer investment impairment (0.13) – Gain on the sale of Rhode Island State Energy Center 0.56 –Total special items (6.99) (0.61)Operational 6.00 5.83

GAAP to Non-GAAP Reconciliation

Utility Normalized Return on Equity, Excluding Impact of Regulatory Charges 2015

(dollars in millions)As-reported earnings available to common stock (a) 1,096.9 Add back: Preferred dividend requirement (b) 17.6 Income taxes (c) 16.8 As-reported income before income taxes (d) = (a)+(b)+(c) 1,131.3 Less certain items (pre-tax): Weather (e) 56.3 Regulatory credit for tax sharing agreement (f) (107.0) Normalized income before taxes (g) = (d)-(e)-(f) 1,182.0 State-specific standard income tax rate (h) 38.50% Income tax at state-specific standard rate (i) = (g)*(h) 455.1 Normalized earnings applicable to common stock (j) = (g)-(i)-(b) 709.3 Affiliated preferred (k) 131.2 Normalized earnings applicable to common stock, adjusted for affiliate preferred (l) = (g)-[(g)-(k)]*(h)-(b) 759.8 Average common equity (m) 9,241.2 As-reported ROE (a)/(m) 11.9% Normalized ROE (o) = (l)/(m) 8.2% As-reported regulatory charges (pre-tax) (n) 100.5Tax affected regulatory charges (n)*(1-h) 61.8 Impact of regulatory charges on ROE (p) = [(n)*(1-h)]/(m) 0.7% Normalized ROE, excluding impact of regulatory charges (o)+(p) 8.9%

About Entergy

72


Shareholder NewsEntergy’s quarterly earnings results, dividend action and other news and information of investor interest

may be obtained by calling Entergy’s investor relations information line at 1-888-ENTERGY (368-3749).

In addition to hearing recorded announcements, you can request information to be sent via fax or mail.

Visit our investor relations website at entergy.com/investor for earnings reports, financial releases,

SEC filings and other investor information, including Entergy’s Corporate Governance Guidelines, Board

Committee Charters for the Audit, Corporate Governance and Personnel Committees and Entergy’s Code

of Conduct. You can also request and receive information via email. Printed copies of the above are also

available without charge by calling 1-888-ENTERGY or writing to:

Entergy Corporation

Investor Relations

P.O. Box 61000

New Orleans, LA 70161

Investor Relations materials are also available on the Entergy Investor Relations mobile web app. The

app provides a convenient way to access the company’s latest financial news and information, including

financial releases, presentations and SEC filings, as well as the ETR stock quote. The mobile web app

is available at enter.gy/ir.

Institutional Investor Inquiries

Securities analysts and representatives of financial institutions may contact David Borde, vice president,

investor relations, at 504-576-5668 or [email protected].

Shareholder Account Information

Wells Fargo Shareowner Services is Entergy’s transfer agent, registrar, dividend disbursing agent and

dividend reinvestment and stock purchase plan agent. Shareholders of record with questions about lost

certificates, lost or missing dividend checks, or notifications of change of address should contact:

Wells Fargo Shareowner Services

P.O. Box 64874

St. Paul, MN 55164-0874

Phone: 1-855-854-1360

Internet: www.shareholderonline.com

Common Stock Information

The company’s common stock is listed on the New York and Chicago exchanges under the symbol “ETR.”

The Entergy share price is reported daily in the financial press under “Entergy” in most listings of New

York Stock Exchange securities. Entergy common stock is a component of the following indices: S&P 500,

S&P Utilities Index, Philadelphia Utility Index and the NYSE Composite Index, among others.

As of Jan. 29, 2016, there were 179,071,731 shares of Entergy common stock outstanding. Shareholders

of record totaled 28,602, and approximately 138,431 investors held Entergy stock in “street name”

through a broker.

Investor Information

73


Certifications

In May 2015, Entergy’s chief executive officer certified to the New York Stock Exchange that he was not

aware of any violation of the NYSE corporate governance listing standards. Also, Entergy filed certifications

regarding the quality of the company’s public disclosure, required by Section 302 of the Sarbanes-Oxley

Act of 2002, as exhibits to our Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2015.

Dividend Payments

All of Entergy’s 2015 distributions were taxable as dividend distributions. The board of directors declares

dividends quarterly and sets the record and payment dates. Subject to board discretion, those dates for

2016 are:

Declaration Date Record Date Payment Date

January 29 February 11 March 1 April 6 May 12 June 1 July 29 August 11 September 1 October 28 November 10 December 1

Quarterly Dividend Payments (in cents-per-share): Quarter 2016 2015 2014 2013 2012

1 85 83 83 83 832 83 83 83 833 83 83 83 83 4 85 83 83 83

Dividend Reinvestment/Stock Purchase

Entergy offers an automatic Dividend Reinvestment and Stock Purchase Plan administered by Wells Fargo

Shareowner Services. The plan is designed to provide Entergy shareholders and other investors with a

convenient and economical method to purchase shares of the company’s common stock. The plan also

accommodates payments of up to $10,000 per month for the purchase of Entergy common shares. First-

time investors may make an initial minimum purchase of $250. Contact Wells Fargo Shareowner Services

by telephone or internet for information and an enrollment form.

Direct Registration System

Entergy has elected to participate in a Direct Registration System that provides investors with an alternative

method for holding shares. DRS will permit investors to move shares between the company’s records and

the broker/dealer of their choice.

Entergy Common Stock Prices

The high and low trading prices for each quarterly period in 2015 and 2014 were as follows (in dollars):

2015 2014

Quarter High Low High Low

1 90.33 73.88 67.02 60.402 79.84 69.06 82.30 66.413 74.09 61.27 82.48 70.704 70.67 63.90 92.02 76.51

Investor Information

74


Business Fact Sheets

Business Fact Sheets

Entergy in:

ArkansasLouisiana

MississippiNew Orleans

Texas

With rates 25 percent below the national average, Entergy Arkansas partners with government, business and community partners to attract new investment and continued economic growth.

ENTERGY in ARKANSAS

43,587

$383 million

MILES OF TRANSMISSION AND DISTRIBUTION LINES

INFUSED BY ENTERGY into the Arkansas economy

700,000CUSTOMERS

63ARKANSAS COUNTIES

Serving

IN

$1.7 million

organizations in 2015

430IN CHARITABLE DONATIONS to more than

ARKANSAS EMPLOYEES

14,000 hoursof volunteer service in 2015

logged more than

$1.4 billionIN CAPITAL INFRASTRUCTURE IMPROVEMENTS over the next two years, reducing power outages while stimulating economic growth

Investing more than

More than

2500 EMPLOYEES STATEWIDE

We Power LifeSM

www.entergy.com 1-800-ENTERGY

(source: The Economic Contribution of Entergy Arkansas, Inc. to the Arkansas Economy” © 2014 IHS)

Entergy ArkansasFUEL MIX

Nuclear 54%Natural Gas 18%Coal 14%Purchased Power 14%

Entergy’s operations in Louisiana include total assets of $16.4 billion and sales over 62,800 GWh, which play a major role in economic and community development. Entergy has helped bring hundreds of industrial and commercial customers to the state, generating thousands of jobs, millions of dollars in tax revenue and improved overall quality of life for our customers.

ENTERGY in LOUISIANA

62 of Louisiana’s 64 Parishes


*Source: This information is from “The Economic Impact of Entergy Louisiana, LLC; Entergy New Orleans, Inc.; and Entergy Corporation Headquarters on the Louisiana Economy and Entergy’s Asset Regions in the State,” a report produced by Loren C. Scott & Associates, Inc., Baton Rouge, 2015.

ENTERGY Has operations in

Home to more than

1.26 millionELECTRICITY CUSTOMERS

statewide, with a payroll of over

Half a Billion Dollars

4,700

EMPLOYEES

ENTERGY PLANS TO INVEST

$5.2 billion in Louisiana projects over the next three years (2016-2018)

INDIRECT JOBS ARE CREATED ELSEWHERE IN THE STATE*

For every5

16

direct jobs Entergy creates, another

We Power LifeSM

• 33,230 distribution line miles

• 5,260 transmission line miles

• 670 substations

over 35,000 square miles and approximately 199,000 Gas Customers in Baton Rouge and New Orleans

Entergy Louisiana’s CO2 EMISSION RATE beats EPA standards by

35% for new CCGT units of 1,000 pounds/MWh

Entergy Louisiana, LLC’s

RESIDENTIAL CUSTOMERS enjoy

RATES 32% BELOW the U.S. average

Entergy serves 445,000 business and residential customers in 45 counties in the western portion of the state, including Mississippi’s capital and largest city, Jackson. Rates more than 20 percent below the national average contribute to the area’s appeal for new economic development.

ENTERGY in MISSISSIPPI

Mississippi

7,250JOBS CREATED

$1billion ENTERGY MISSISSIPPI has invested more than

in the past 5 years

ENTERGY HAS ANNUAL ECONOMIC IMPACT IN MISSISSIPPI of nearly

Utility rates help Mississippi

RANK NUMBER

2 in best overall cost of doing business in USA (source: CNBC, 2015)

ENTERGY partners with many Mississippi schools in support of workforce training; the state has the

1

NUMBER ranked community college system in the USA(source: WalletHub, 2015)

ENTERGY PARTNERS WITH economic development allies to attract projects including: • Nissan • Continental Tire • Nucor Steel • Wal-Mart Distribution Center • Mars Foods• Dollar General

(source: Global Strategies, Inc., 2012 study)

$1billionin utility infrastructure in the past five years

EMPLOYEES logged more than 10,000volunteer hours in the past year

We Power LifeSM


A strong community partner to one of America’s most historic and beloved cities, Entergy New Orleans serves Louisiana’s Orleans Parish, providing electricity to more than 197,000 customers and natural gas to 105,000 homes and businesses.

ENTERGY in NEW ORLEANS

ELECTRIC POWER TRANSMISSION SYSTEM UPGRADE project includes

$30 millioninvestment in improved capacity and reliability

ENTERGY NEW ORLEANS CUSTOMERS =

90 percentof pre-Katrina customers … and that number is climbing

donated in Orleans Parish to help teachers, schools and non-profits transform educational opportunities for 1000s of local children

SINCE HURRICANE KATRINA,

> $10 million Broke ground for a 1-megawatt solar pilot project, with more than

REPLACED

of gas delivery system, receiving national recognition for cost control, schedule adherence, design innovation

4,000SOLAR PANELS producing electricity to power approximately 160 average homes

328 miles

We partner with ECONOMIC DEVELOPMENT allies to attract many projects:

• Construction of the Costco Warehouse Club

• Expansion and consolidation of Folgers Coffee

• Return of Chiquita Bananas to Port of New Orleans

INVESTMENT in New Orleans power infrastructure includes the Midtown substation, powering a

NEW HOSPITAL COMPLEX

We Power LifeSM


Entergy delivers safe, reliable and affordable energy to homes, businesses and communities in southeast Texas. Entergy Texas serves a population of nearly 2 million people in a growing area that includes some of the largest industrial complexes in the nation as well the major communities of The Woodlands, Beaumont, Port Arthur, Conroe, Huntsville and Orange.

ENTERGY in TEXAS

7,300

$220 million 15,941

Since 2013,

WE HAVE ASSISTED in the creation of over

jobs in southeast Texas

IN TRANSMISSION CAPITAL IMPROVEMENTSover the past five years

MILES OF TRANSMISSION AND DISTRIBUTION LINES

$3.7 millionIN CHARITABLE GIVING over the past five years

In 2015 EMPLOYEES ACHIEVED

3 million worker hours without a lost time accident

ENTERGY TEXAS industrial sales have grown by a compound annual growth rate of

4.5%430,000CUSTOMERS IN27COUNTIES

We Power LifeSM


More than

More than

over the past five years

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