Entergy Reports Third Quarter Earnings Increase

Entergy Reports Third Quarter Earnings

New Orleans, La. (October 28, 2008) - Entergy
Corporation (NYSE:ETR) today reported third quarter 2008 as-reported earnings of
$470.3 million, or $2.41 per share, and operational earnings of $487.3 million,
or $2.50 per share, compared with as-reported and operational earnings of $461.2
million, or $2.30 per share, for third quarter 2007.

Consolidated
Earnings Reconciliation of GAAP to Non-GAAP Measures

Third Quarter
and Year-to-Date
2008 vs. 2007

(Per share in
U.S.
$)

Third Quarter

Year-to-Date

2008

2007

Change

2008

2007

Change

As-Reported
Earnings

2.41

2.30

0.11

5.33

4.63

0.70

Less Special
Items

(0.09)

-

(0.09)

(0.18)

-

(0.18)

Operational
Earnings

2.50

2.30

0.20

5.51

4.63

0.88

*GAAP refers to
United States generally accepted accounting principles.
Operational
Earnings Highlights for Third Quarter 2008

Utility, Parent & Other earnings
were moderately higher with lower income tax expense and operations and
maintenance expense, largely offset by lower net revenue.

Entergy Nuclear earnings increased
as a result of higher power prices.

Entergys Non-Nuclear Wholesale
Assets business reported lower earnings as a result of higher income tax
expense.

During the quarter we experienced
both the worldwide collapse of the financial market and some of the most
devastating storm activity (Gustav and Ike) to ever hit the Gulf Coast area.
Through sound integrated scenario planning and preparation, the company was able
to meet the operational and financial needs without sacrificing our commitments
to our goals and objectives, said J. Wayne Leonard, Entergys chairman and
chief executive officer. Through superior execution, our utility completed
storm repairs in record time again and more importantly with the safest record,
proving it is unmatched at storm restoration in the country. Through diligent
risk management and financial planning, we preserved our long-standing solid
liquidity position, without resorting to extreme financing measures.
Other Business
Highlights

Entergy was named for a third
consecutive year to the exclusive Dow Jones Sustainability World Index, the
only U.S. utility to be selected.

GovernanceMetrics, an independent
evaluator of corporate governance activities, assigned Entergy an overall
global rating of 10.0 for best-in-class corporate governance.

Entergy Gulf States Louisiana,
L.L.C. and Entergy Louisiana, LLC received nearly $1 billion of storm
financing proceeds.

Entergy Nuclear received approval
from the Nuclear Regulatory Commission for the renewal of the operating
license for the James A. FitzPatrick plant, extending its license into 2034.

Entergy will host a teleconference to
discuss this release at 10 a.m. CDT on Tuesday, Oct. 28, with access by
telephone, 719-457-2080, confirmation code 3834525. The call and presentation
slides can also be accessed via Entergys Web site at www.entergy.com. A replay
of the teleconference will be available for seven days thereafter by dialing
719-457-0820, confirmation code 3834525. The replay will also be available on
Entergys Web site at www.entergy.com.
Utility, Parent &
Other
In third quarter 2008, Utility,
Parent & Other had earnings of $286.0 million, or $1.47 per share, on an
as-reported basis and earnings of $303.0 million, or $1.56 per share, on an
operational basis, compared to $305.7 million, or $1.52 per share, in
as-reported and operational earnings in third quarter 2007. Operational results
for Utility, Parent & Other in third quarter 2008 reflect lower income tax
expense and lower operation and maintenance expense, largely offset by lower net
revenues. The lower income tax expense was due to the liquidation of a
subsidiary which resulted in a tax loss on the companys investment. Lower
operations and maintenance expense was the result of lower payroll-related costs
and the absence of a provision recorded in 2007 related to storm-related bad
debts at Entergy New Orleans, Inc. and Entergy Louisiana, LLC. Operations and
maintenance expense diverted to storm restoration was offset by storm expense
recorded at Entergy Arkansas, Inc. The decrease in net revenues reflects the
effect of milder-than-normal weather which reduced both billed sales and
unbilled sales during the period and reduced customer usage associated with
hurricanes Gustav and Ike during the quarter.
Megawatt-hour sales in the
residential sector in third quarter 2008, on a weather-adjusted basis, showed a
1.5 percent decrease compared to third quarter 2007. Commercial and governmental
sales, after adjusting for weather, were relatively flat year over year.
Industrial sales in the current quarter were essentially the same as one year
ago.
The residential sales sector showed a
decrease quarter to quarter as two major hurricanes affected Entergys service
territory within two weeks of one another. An increase in the number of
customers served to partially offset the decrease in sales growth in the
residential sector, as well as the commercial and governmental sectors. Sales in
the industrial sector for third quarter 2008 were essentially unchanged compared
to the same quarter of 2007. The effect of storm activity during the quarter, an
overall sluggish economy nationally, and continued weakness in the refining
segments fundamentals weighed on the industrial sector where only chemicals and
primary metals faired reasonably well due to continued export activities.
Entergy Nuclear
Entergy Nuclear earned $205.3
million, or $1.05 per share, on as-reported and operational bases in third
quarter 2008, compared to $160.9 million, or 80 cents per share, for as-reported
and operational earnings in third quarter 2007. Entergy Nuclears earnings
increased primarily as a result of higher power prices.
Non-Nuclear
Wholesale Assets
Entergys Non-Nuclear Wholesale
Assets business had a loss of $21.0 million, or 11 cents per share, on both
as-reported and operational bases in third quarter 2008 compared to a loss of
$5.5 million, or 2 cents per share, on as-reported and operational bases in
third quarter 2007. The increased loss reflects higher income tax expense in the
current period resulting from a redemption of an investment at the non-nuclear
wholesale business.
Outlook
Entergy is reaffirming 2008 earnings
guidance in the range of $6.50 to $6.90 per share on both as-reported and
operational bases on a business-as-usual basis. Guidance for 2008 does not
include a special item for expenses, a portion of which were incurred during the
current quarter, anticipated in connection with the plan to pursue separation of
Entergys non-utility nuclear business and to enter into a nuclear services
joint venture, both discussed below.
Business Separation

On November 3, 2007, Entergys Board
of Directors approved a plan to pursue a separation of the non-utility nuclear
business from Entergys regulated utility business through a tax-free spin-off
of the non-utility nuclear business. Enexus Energy Corporation, formerly
referred to as SpinCo, will be a new, independent publicly traded company. In
addition, Entergy and Enexus intend to enter into a nuclear services joint
venture, with equal ownership. EquaGen L.L.C. has been selected as the name for
the joint venture.
Progress achieved since the last
quarter update includes:

Key board and leadership positions
at Enexus and EquaGen continued to be filled.

A private letter ruling finding
that the spin-off qualifies for tax-free treatment for federal income tax
purposes for both Entergy and its shareholders was received from the Internal
Revenue Service on Sept. 10.

Regulatory proceedings continued to
advance

In Vermont, all scheduled
procedural matters have been completed and a decision from the Vermont
Public Service Board is pending.

In New York, all scheduled
procedural matters have been completed and the administrative law judges
issued notification to all parties that from their review of the
submissions, all issues of fact and policy material to the relief requested
by petitioners have been thoroughly addressed by the parties, an adequate
record for decision is available to the Commission, and no further formal
proceedings are warranted.

A second amendment to the Form 10
filing with the U.S. Securities and Exchange Commission was filed on Sept.
12.

Syndication efforts were launched
at the end of August for a $1 billion Enexus senior secured revolving credit
facility, and Enexus obtained over $1 billion of commitment letters.

Documentation for the offering of
pre-spin exchangeable notes by Entergy is substantially complete and Enexus is
positioned to launch an offering of its notes at the first opportunity.

The state regulatory decisions and
financing are now the critical path. Entergy continues to target receiving
regulatory decisions in the fourth quarter. However, due to unprecedented
turmoil in the financial markets, it is uncertain whether or not financing
fundamental to the spin-off transaction can be effected in the near-term.
Entergy and Enexus stand ready to launch the financing when market conditions
are favorable for such an issuance.
Entergy Corporation is an integrated
energy company engaged primarily in electric power production and retail
distribution operations. Entergy owns and operates power plants with
approximately 30,000 megawatts of electric generating capacity, and it is the
second-largest nuclear generator in the United States. Entergy delivers
electricity to 2.7 million utility customers in Arkansas, Louisiana, Mississippi
and Texas. Entergy has annual revenues of more than $11 billion and
approximately 14,300 employees.
Additional information regarding
Entergys quarterly results of operations, regulatory proceedings, and other
operations is available in Entergys investor news release dated Oct. 28, 2008,
a copy of which has been filed today with the Securities Exchange Commission on
Form 8-K and is available on Entergys investor relations Web site at

www.entergy.com/investor_relations.
-30-
In
this press release, and from time to time, Entergy Corporation makes certain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Except to the extent required by the federal
securities laws, Entergy undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events, or otherwise.

Forward-looking statements involve a number of risks and uncertainties. There
are factors that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements, including (a) those
factors discussed in (i) Entergys Form 10-K for the year ended December 31,
2007, (ii) Entergys Form 10-Q for the quarterly periods ended March 31 and June
30, 2008 and (iii) Entergys other reports and filings made under the Securities
Exchange Act of 1934, (b)the uncertainties associated with efforts to remediate
the effects of Hurricanes Gustav and Ike and recovery of costs associated with
restoration, and (c) the following transactional factors (in addition to others
described elsewhere in this press release and in subsequent securities
filings):(i) risks inherent in the contemplated spin-off, joint venture and
related transactions (including the level of debt to be incurred by Enexus
Energy Corporation and the terms and costs related thereto), (ii) legislative
and regulatory actions, and (iii) conditions of the capital markets during the
periods covered by the forward-looking statements. Entergy cannot provide any
assurances that the spin-off or any of the proposed transactions related thereto
will be completed, nor can it give assurances as to the terms on which such
transactions will be consummated. The transaction is subject to certain
conditions precedent, including regulatory approvals and the final approval by
the Board of Directors of Entergy.

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