Operational Earnings Highlights for First Quarter 2009

Utility, Parent & Other results were lower due to higher other taxes and depreciation and amortization expenses.

Entergy Nuclear earnings decreased as a result of lower production due to additional planned refueling outage days and impairments recorded on decommissioning trust fund investments.

Entergy’s Non-Nuclear Wholesale Assets results were essentially flat.

“In the current uncertain climate, we have focused significant effort on positioning the company for long-term success while weathering the current economic storm,” said J. Wayne Leonard, Entergy’s chairman and chief executive officer (CEO). “While we cannot predict what will come next in these times, we will be relentless in seeking value and managing risk, and we are prepared to seize opportunities that add value for our stakeholders.”

Entergy’s business highlights include the following:

Leonard was named one of the nation’s “Best CEOs” by Institutional Investor magazine, his sixth consecutive year for achieving the honor.

Entergy received its 12th and 13th industry awards for restoring power after major storms and is the only company recognized 11 years in a row by Edison Electric Institute for its storm restoration work.

Indian Point 3 completed 678 continuous days of operation as it entered its refueling outage in March. This run marked an operating record for Westinghouse pressurized water reactors which account for nearly one-fourth of the commercial nuclear power reactors in US.

Consolidated Net Cash Flow Provided by Operating Activities

Entergy’s net cash flow provided by operating activities in first quarter 2009 was $375 million compared to $448 million in first quarter 2008. The decrease was due primarily to:

Net effect of hurricanes Gustav and Ike and a major Arkansas ice storm which reduced operating cash flow at the Utility by $314 million as a result of costs associated with system repairs.

Higher working capital requirements of $113 million at Utility.

Higher expenses associated with non-utility nuclear spin-off costs and dis-synergies totaling $23 million.

Offsets include:

An increased deferred fuel contribution at the Utility in the current quarter totaling $471 million.

Utility, Parent & Other Results

In first quarter 2009, Utility, Parent & Other had earnings of $0.32 per share on an as-reported basis and $0.37 per share on an operational basis, compared to earnings of $0.48 per share on as-reported and operational bases in first quarter 2008. Operational results for Utility, Parent & Other in first quarter 2009 reflect higher taxes other than income taxes due to the absence of the benefit associated with favorable resolution of tax audit issues that was included in results in first quarter 2008. Higher depreciation and amortization expense also contributed to lower results in the current quarter.

Electricity usage, in gigawatt-hour sales by customer segment, is included in Table 4. Current quarter sales reflect the following:

Residential sales in first quarter 2009, on a weather-adjusted basis, showed a 1.8% decrease compared to first quarter 2008, which was also a leap-year.

Commercial and governmental sales, on a weather-adjusted basis, decreased 1.2% year over year.

Industrial sales in the first quarter were down 13.2% compared to the same quarter of 2008.

The residential and commercial and governmental sales sectors reflected a decrease quarter to quarter as the continued weakening in the economy affected customer usage across these sectors. Sales in the industrial sector for first quarter 2009 decreased significantly compared to the same quarter of 2008 primarily due to a weak economic climate that worsened in the current period. Small and mid-sized industrial customers are also being negatively affected by overseas competition. Despite the lower sales volume, net revenue at the Utility was essentially flat, in part due to the fact that a significant portion of the industrial customer bill is based on a fixed charge basis that does not vary linearly with volume changes.

Entergy Nuclear

Entergy Nuclear earned $0.91 per share on an as-reported basis and $0.95 per share on an operational basis in first quarter 2009, compared to $1.12 per share on as-reported and operational bases in first quarter 2008. Entergy Nuclear’s earnings decreased primarily as a result of lower revenue due to lower generation resulting from additional planned refueling outage days and lower revenue amortization for the Palisades below-market Power Purchase Agreement. Impairments recorded in the current period associated with decommissioning trust fund investments also contributed to lower earnings.

Non-Nuclear Wholesale Assets

Entergy’s Non-Nuclear Wholesale Assets business results were essentially unchanged in first quarter 2009 compared to first quarter 2008 with a loss of $(0.03) per share in the current period compared to $(0.04) per share a year ago.

Other Financial Performance Highlights

Earnings Guidance

Entergy is reaffirming 2009 earnings guidance in the range of $6.70 to $7.30 per share on an operational basis, assuming a business as usual operation for the full year. As-reported guidance ranges from $6.56 to $7.16 and reflects $(0.14) per share of projected dis-synergies associated with the spin-off of Entergy’s non-utility nuclear business and plans to enter into a nuclear services joint venture, both discussed below and in Appendix A. Guidance for 2009 does not include a special item for expenses, which were incurred beginning in 2008 and continuing in first quarter 2009, anticipated in connection with the outside services provided to pursue the spin-off. Entergy has indicated that should the current economic climate and power prices on Entergy Nuclear’s open position persist for the balance of 2009, earnings could approach the lower end of the guidance ranges. Yearover-year changes are shown as point estimates and are applied to 2008 actual results to compute the 2009 guidance midpoint. Because there is a range of possible outcomes associated with each earnings driver, a range is applied to the calculated guidance midpoints to produce Entergy’s guidance ranges for as-reported and operational earnings.

Key assumptions supporting 2009 earnings guidance are as follows:

Utility, Parent & Other

Normal weather.

Retail sales growth just under 3%, considering effects of 2008 hurricanes and industrial expansion; nearly flat on a normalized basis excluding hurricane effect and industrial expansion.

Increased revenue associated with rate actions.

Decreased non-fuel operation and maintenance expense, due to absence of Entergy Arkansas’ 4th quarter 2008 charge associated with non-recovery of storm reserve and removal costs; inflation essentially offset by cost reduction initiatives.

Decreased income taxes due to lower effective tax rate in 2009 compared to 2008.

Accretion/other is primarily driven by carrying costs recorded on unrecovered storm costs in 2009, and lower interest expense at the Parent due to lower debt outstanding and lower interest rate on corporate revolver, partially offset by higher depreciation expense associated with capital additions

Entergy Nuclear

41 TWh of total output, reflecting an approximate 93% capacity factor, including 30 day refueling outages at Pilgrim and Palisades and 38 days at Indian Point 3 in Spring 2009.

86% of energy sold under existing contracts; 14% sold into the spot market.

$61/MWh average energy contract price; $58/MWh average unsold energy price based on published market prices at the end of 2008.

Palisades below-market PPA revenue amortization of $53 million in 2009, down from $76 million in 2008.

Non-fuel O&M/refueling outage expense growth of about 2%.

Increased income taxes due to higher effective tax rate in 2009 compared to 2008.