10-QPeriod: Q1 FY2008

ENTERGY CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2008

Filed May 9, 2008For Securities:ETR

Summary

Entergy Corporation's May 9, 2008, 10-Q filing indicates no material changes to previously disclosed risk factors. The company actively repurchased shares during the first quarter of 2008, totaling 1,468,200 shares at an average price of $107.74. This activity was driven by authorized repurchase programs, including a $1.5 billion program expected to conclude in 2008 and an incremental $500 million program announced in January 2008. The filing also details ongoing regulatory matters, including appeals related to affiliate purchased power agreements and a petition concerning the jurisdictional separation of Entergy Gulf States, Inc. into Entergy Texas and Entergy Gulf States Louisiana. Environmental regulations, particularly concerning ozone non-attainment in Texas and Louisiana, are highlighted, with potential impacts on compliance costs and emission controls. The company is monitoring these developments and developing compliance strategies.

Key Highlights

  • 1Entergy repurchased 1,468,200 shares of common stock in Q1 2008 under authorized programs, demonstrating capital return to shareholders.
  • 2The company is actively managing its share repurchase programs, with expectations to complete a $1.5 billion program in 2008 and utilizing an additional $500 million authorization.
  • 3Ongoing legal and regulatory proceedings related to affiliate purchased power agreements and jurisdictional separation of subsidiaries are being monitored, with potential implications for operations.
  • 4Environmental regulations regarding ozone non-attainment in Texas and Louisiana are evolving, potentially requiring new emission controls and impacting compliance costs.
  • 5The company's subsidiaries continue to maintain healthy ratios of earnings to fixed charges and combined fixed charges and preferred dividends/distributions, indicating financial stability.
  • 6The filing does not report material changes to previously disclosed risk factors, suggesting a stable risk profile as of the reporting date.

Frequently Asked Questions

During the first quarter of 2008 (January 1 to March 31), Entergy repurchased a total of 1,468,200 shares of its common stock at an average price of $107.74 per share. These repurchases were made under existing share repurchase programs authorized by the Board of Directors.

While there are no material changes to risk factors, the filing details ongoing regulatory proceedings. These include an appeal by the LPSC regarding affiliate purchased power agreements and a petition by TIEC concerning the jurisdictional separation of Entergy Gulf States, Inc. The company is actively engaged in these matters and believes the ultimate resolution will not affect the jurisdictional separation.

Entergy is subject to evolving environmental regulations concerning ozone non-attainment in Texas and Louisiana. Several areas where the company operates have been reclassified to higher non-attainment levels, which may necessitate the installation of new NOx controls and could increase compliance costs. The company is monitoring state implementation plan developments and will adjust its compliance strategies accordingly.

The filing includes ratios of earnings to fixed charges and earnings to combined fixed charges and preferred dividends/distributions for its various utility subsidiaries for the twelve months ended March 31, 2008. These ratios remain generally strong across the subsidiaries, indicating a sufficient level of earnings to cover fixed obligations.