Summary
This 8-K filing from Entergy Corporation (ETR) and its subsidiary Entergy Gulf States, Inc. reports on the financial implications of a Texas court decision regarding the recovery of River Bend nuclear power plant costs. The Texas Third District Court of Appeals affirmed a prior ruling disallowing Entergy Gulf States to recover approximately $107.7 million in River Bend plant costs that have been held in abeyance since 1988. Consequently, Entergy Gulf States has accrued for the entire potential loss. This accrual will reduce Entergy Corporation's second quarter 2003 net income by $65.6 million and diluted earnings per share by $0.28. Importantly, this charge is considered a "special item" and will not impact the operational earnings per share reported by the company, allowing for a clearer comparison of ongoing business performance.
Key Highlights
- 1Texas court affirms disallowance of $107.7 million in River Bend nuclear plant costs for Entergy Gulf States.
- 2Entergy Gulf States will accrue the full potential loss related to these abeyed plant costs.
- 3Accrual to reduce Entergy Corporation's Q2 2003 net income by $65.6 million.
- 4Accrual to reduce Entergy Corporation's Q2 2003 diluted EPS by $0.28.
- 5The $0.28 EPS reduction is classified as a 'special item' and will not affect operational EPS.
- 6This item relates to contested construction costs incurred by Entergy Gulf States prior to 1986.
- 7Entergy Gulf States is considering further judicial actions, including potential appeals.