8-KOther Events

ENTERGY CORP /DE/ 8-K Report, Corporate Update (Nov 26, 2012)

Filed November 26, 2012For Securities:ETR

Summary

This Form 8-K filing from Entergy Corp. on November 26, 2012, primarily announces the resolution of a U.S. Department of Justice (DOJ) investigation concerning the proposed acquisitions of the Hot Spring Energy Facility by Entergy Arkansas and the Hinds Energy Facility by Entergy Mississippi. The DOJ has stated it will not challenge these acquisitions and is closing its investigation into them, allowing Entergy Arkansas and Entergy Mississippi to proceed with closing these deals in 2012. This represents a significant de-risking event for these specific transactions. Furthermore, the filing details Entergy's progress in its strategic plan to join the Midwest Independent Transmission Operator (MISO) and spin off its transmission business to ITC Holdings Corp. Key retail regulatory approvals have been secured, including a settlement agreement approved by the Council of the City of New Orleans for Entergy New Orleans and Entergy Louisiana, and an order from the Mississippi Public Service Commission for Entergy Mississippi. These approvals are critical steps towards realizing the benefits of operational integration and potential efficiencies associated with joining MISO.

Key Highlights

  • 1DOJ will not challenge proposed acquisitions of Hot Spring and Hinds Energy Facilities, allowing Entergy Arkansas and Entergy Mississippi to close these deals in 2012.
  • 2DOJ is closing its investigation into the specific acquisitions mentioned above.
  • 3DOJ's broader civil investigation into generation procurement, dispatch, and transmission practices remains open but may be resolved by Entergy's MISO and ITC transaction plans.
  • 4Entergy's utility operating companies have received key retail regulatory approvals to join MISO.
  • 5Council of the City of New Orleans approved a settlement for Entergy New Orleans and Entergy Louisiana to join MISO.
  • 6Mississippi Public Service Commission approved Entergy Mississippi's transfer of functional control of transmission facilities to join MISO.
  • 7These approvals signify that Entergy has obtained all sought-after retail regulatory approvals to proceed with joining MISO.

Frequently Asked Questions

The DOJ announced it will not challenge Entergy's proposed acquisitions of the Hot Spring Energy Facility (by Entergy Arkansas) and the Hinds Energy Facility (by Entergy Mississippi). The DOJ is closing its investigation into these specific acquisitions, allowing Entergy to proceed with closing them in 2012.

No, the DOJ's civil investigation concerning certain generation procurement, dispatch, and transmission system practices of Entergy's utility operating companies remains open. However, the DOJ noted that Entergy's plans to join MISO and spin off its transmission business to ITC Holdings Corp. would likely resolve their concerns.

Entergy has secured critical retail regulatory approvals necessary to join MISO. The Council of the City of New Orleans approved a settlement for Entergy New Orleans and Entergy Louisiana, and the Mississippi Public Service Commission approved Entergy Mississippi's functional control transfer. These approvals mean Entergy has obtained all the retail regulatory consents required to move forward with joining MISO.

Joining MISO and spinning off the transmission business to ITC are strategic moves intended to resolve the DOJ's concerns regarding operational practices. These actions are expected to lead to potential efficiencies and integration benefits for Entergy's operations.