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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;b&gt;NOTE 1. COMMITMENTS AND CONTINGENCIES
    (Entergy Corporation, Entergy Arkansas, Entergy Gulf States
   Louisiana, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System
   Energy)&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Entergy and the Registrant Subsidiaries are involved in a number of legal, regulatory, and tax
   proceedings before various courts, regulatory commissions, and governmental agencies in the
   ordinary course of business. While management is unable to predict the outcome of such
   proceedings, management does not believe that the ultimate resolution of these matters will have a
   material adverse effect on Entergy&amp;#8217;s results of operations, cash flows, or financial condition.
   Entergy discusses regulatory proceedings in Note 2 to the financial statements in the Form 10-K and
   herein and discusses tax proceedings in Note 3 to the financial statements in the Form 10-K and
   Note 10 to the financial statements herein.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;u&gt;&lt;b&gt;Nuclear Insurance&lt;/b&gt;&lt;/u&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;See Note 8 to the financial statements in the Form 10-K for information on nuclear liability
   and property insurance associated with Entergy&amp;#8217;s nuclear power plants.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;u&gt;&lt;b&gt;Conventional Property Insurance&lt;/b&gt;&lt;/u&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;See Note 8 to the financial statements in the Form 10-K for information on Entergy&amp;#8217;s
   non-nuclear property insurance program.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;u&gt;&lt;b&gt;Employment Litigation &lt;/b&gt;&lt;/u&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The Registrant Subsidiaries and other Entergy subsidiaries are responding to various lawsuits
   in both state and federal courts and to other labor-related proceedings filed by current and former
   employees and third parties not selected for open positions. These actions include, but are not
   limited to, allegations of wrongful employment actions; wage disputes and other claims under the
   Fair Labor Standards Act or its state counterparts; claims of race, gender and disability
   discrimination; disputes arising under collective bargaining agreements; unfair labor practice
   proceedings and other administrative proceedings before the National Labor Relations Board; claims
   of retaliation; and claims for or regarding benefits under various Entergy Corporation sponsored
   plans. Entergy and the Registrant Subsidiaries are responding to these lawsuits and proceedings
   and deny liability to the claimants.
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   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;&lt;u&gt;Asbestos Litigation&lt;/u&gt; (Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana,
   Entergy Mississippi, Entergy New Orleans, and Entergy Texas)&lt;/b&gt;
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   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;See Note 8 to the financial statements in the Form 10-K for information regarding asbestos
   litigation at Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy
   Mississippi, Entergy New Orleans, and Entergy Texas.
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