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Entergy Annual Report, Year Ended Dec 31, 2000

Filing Date
Filed March 16, 2001
Period End
December 31, 2000
Security
ETR
In the record · 2016–202610-K1110-Q338-K146

ETR filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 146 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Jan ’17Jan ’17
  2. Leadership change8-K · May ’19May ’19
  3. Leadership change8-K · May ’21May ’21
  4. Material agreement8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed March 16, 2001. Cited figures are marked; the original filing is the authoritative source.

Entergy Corporation (ETR), a Delaware holding company, reported in its combined 2000 Form 10-K that its domestic utility companies provided 74%a of 2000 revenue and 87% of net income, while its competitive businesses (power marketing and trading, global power development, and domestic non-utility nuclear) are a growing focus.

Consolidated 2000 operating revenues were $10.02 billionb and consolidated net income was $710.9 million, with earnings applicable to common stock of $679.3 million, or $2.97 diluted EPS, compared with $2.25 in 1999. The filing discloses that Entergy has agreed to a business combination with FPL Group, under which FPL Group shareholders would own about 57% of the new company and Entergy shareholders about 43%, with the objective of closing by late 2001 and a $215 million termination fee in certain circumstances. The company plans $8.2 billion of capital investment for 2001 through 2003, of which $2.6 billion is for the domestic utilities, $3.6 billion for global power development and $2.0 billion for the nuclear business.

Major recent steps include the January 2001 formation of Entergy-Koch, L.P. with Koch Industries, the November 2000 purchase of the FitzPatrick and Indian Point 3 nuclear plants from the New York Power Authority, and a pending purchase of Indian Point 2. Risks highlighted include unresolved transition to retail competition in Arkansas, Texas and other jurisdictions, stranded cost exposure, pending FERC proceedings on the System Agreement, the December 2000 Arkansas ice storms (estimated storm costs of $195 millionc), and a range of litigation including a $544 million Louisiana fuel-clause claim that Entergy Louisiana has settled for about $72 million in refunds. For investors, the key questions are the timing and conditions of the FPL Group merger, the ability to fund the large capital program while managing fuel-cost recovery, and how the competitive businesses and regulatory outcomes will affect earnings.

02—Key points

Key Highlights

  1. Consolidated 2000 operating revenues of $10.02 billion, up from $8.77 billion in 1999; consolidated net income of $710.9 million versus $595.0 million.
  2. Diluted earnings per share of $2.97 in 2000, compared with $2.25 in 1999; basic EPS of $3.00.
  3. Domestic utility segment provided 74% of revenue and 87% of net income in 2000; the company serves about 2.6 million retail customers in Arkansas, Louisiana, Mississippi and Texas.
  4. Pending business combination with FPL Group: Entergy shareholders to receive 0.585 of a share of the new company per share and own about 43%; objective to close by late 2001.
  5. Capital investment plan of $8.2 billion for 2001 through 2003, with significant borrowings possibly required.
  6. Acquired FitzPatrick and Indian Point 3 nuclear plants in November 2000; agreed to buy Indian Point 2 for $600 million cash, pending approvals, with closing expected by mid-2001.
  7. Entergy-Koch, L.P. formed January 31, 2001 with Koch Industries; Entergy contributed its power marketing and trading business and about $414 million in cash, equity and loans.

03—Questions

Frequently Asked Questions

  1. What happens to Entergy shareholders if the FPL Group merger closes?

    Each Entergy common share would convert into 0.585 of a share of the new company, and Entergy shareholders are expected to own about 43% of the new company's common equity. FPL Group shareholders would own about 57%, and each FPL Group share converts into one share of the new company.

  2. How did Entergy perform financially in 2000?

    Consolidated net income rose to $710.9 million from $595.0 million, and earnings applicable to common stock were $679.3 million, or $2.97 per diluted share, versus $2.25 in 1999. Operating revenues increased to $10.02 billion from $8.77 billion, with higher fuel and purchased power costs passed through to customers.

  3. What are the main risks to earnings disclosed in the filing?

    The filing cites uncertain transition to retail competition in Arkansas and Texas, potential write-offs of regulatory assets if SFAS 71 is discontinued, stranded cost recovery, pending FERC proceedings on the System Agreement and Transco formation, and litigation in Louisiana, Mississippi and Texas. It also notes the December 2000 ice storms in Arkansas, with about $195 million of estimated storm-related costs.

  4. How large is Entergy's planned investment and how will it be funded?

    Entergy plans $8.2 billion of capital investment for 2001 through 2003, including $2.6 billion for domestic utilities, $3.6 billion for global power development and $2.0 billion for the domestic non-utility nuclear business. The filing says the plan depends on access to capital, and significant borrowings may be necessary, with internally generated funds, debt, bank facilities and project financing as sources.

  5. What is the status of the Louisiana fuel-clause lawsuit?

    Entergy Louisiana reached a settlement under which it agrees to refund approximately $72 million to customers for fuel adjustment clause filings from 1975 through 1999. The LPSC approved the settlement after a hearing in November 2000, and a state court hearing on class certification and approval was scheduled for April 2001.

04—Continue

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