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   &lt;!-- Begin Block Tagged Note 2 - us-gaap:PublicUtilitiesDisclosureTextBlock--&gt;
   &lt;div style="font-family: 'Times New Roman',Times,serif"&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;NOTE 2. RATE AND REGULATORY MATTERS&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Regulatory Assets&lt;/b&gt;&lt;/u&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;See Note 2 to the financial statements in the Form 10-K for information regarding regulatory
   assets in the Utility business presented on the balance sheets of Entergy and the Registrant
   Subsidiaries. Following is an update to that information.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Fuel and Purchased Power Cost Recovery&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;Entergy Gulf States Louisiana&lt;/u&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In January&amp;#160;2003 the LPSC authorized its staff to initiate a proceeding to audit the fuel
   adjustment clause filings of Entergy Gulf States Louisiana and its affiliates. The audit includes
   a review of the reasonableness of charges flowed by Entergy Gulf States Louisiana through its fuel
   adjustment clause for the period 1995 through 2004. The LPSC Staff issued its audit report in
   December&amp;#160;2010. The report recommends the disallowance of $23&amp;#160;million of costs which, with
   interest, will total $43&amp;#160;million. $2.3&amp;#160;million of this total relates to a realignment to and
   recovery through base rates of certain SO&lt;sub style="font-size: 85%; vertical-align: text-bottom"&gt;2&lt;/sub&gt; costs. Entergy Gulf States Louisiana filed
   comments disputing the findings in the report. A hearing on the merits is scheduled to begin in
   November&amp;#160;2011. Entergy Gulf States Louisiana has recorded provisions for the estimated effect of
   this proceeding.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;Entergy Texas&lt;/u&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In December&amp;#160;2010, Entergy Texas filed with the PUCT a request to refund fuel cost recovery
   over-collections through October&amp;#160;2010. Pursuant to a stipulation among the parties that was
   approved by the PUCT in March&amp;#160;2011, Entergy Texas will refund over-collections through November
   2010 of approximately $72.7&amp;#160;million, including interest through the refund period. The refund will
   be made for most customers over a three-month period that began with the February&amp;#160;2011 billing
   cycle.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Little Gypsy Repowering Project&lt;/b&gt;&lt;/u&gt; (Entergy and Entergy Louisiana)
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;See the Form 10-K for a discussion of the Little Gypsy repowering project. As of March&amp;#160;2011,
   $207.6&amp;#160;million of costs, including carrying costs, had been incurred by Entergy Louisiana for the
   project. As discussed in the Form 10-K, in January&amp;#160;2011 all parties conducted a mediation on the
   disputed issues, and thereafter, reached agreement on a settlement of all disputed issues,
   including cost recovery and cost allocation. The proposed settlement, which provides for Entergy
   Louisiana to recover $200&amp;#160;million as of March&amp;#160;31, 2011, and carrying costs on that amount on
   specified terms thereafter, is expected to be presented to the LPSC for approval at its May&amp;#160;2011
   meeting. The proposed settlement also provides for Entergy Louisiana to recover the approved
   project costs by securitization. In April&amp;#160;2011, Entergy Louisiana filed an application with the
   LPSC to recover the project costs by securitization. The LPSC is expected to consider Entergy
   Louisiana&amp;#8217;s application for securitization during the second quarter 2011.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;Retail Rate Proceedings&lt;/b&gt;&lt;/u&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;See Note 2 to the financial statements in the Form 10-K for detailed information regarding
   retail rate proceedings involving the Utility operating companies. The following are updates to
   the Form 10-K.
   &lt;/div&gt;
   &lt;!-- Folio --&gt;
   &lt;!-- /Folio --&gt;
   &lt;/div&gt;
   &lt;!-- PAGEBREAK --&gt;
   &lt;div style="font-family: 'Times New Roman',Times,serif"&gt;
   &lt;div align="right" style="font-size: 10pt; margin-top: 0pt"&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Filings with the LPSC&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;(Entergy Gulf States Louisiana)
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In January&amp;#160;2011, Entergy Gulf States Louisiana filed with the LPSC its gas rate stabilization
   plan for the test year ended September&amp;#160;30, 2010. The filing showed an earned return on common
   equity of 8.84% and a revenue deficiency of $0.3&amp;#160;million. In March&amp;#160;2011, the LPSC staff filed its
   findings, suggesting an adjustment that will produce an 11.76% earned return on common equity for
   the test year and a $0.2&amp;#160;million rate reduction. Entergy Gulf States Louisiana will implement the
   $0.2&amp;#160;million rate reduction effective with the May&amp;#160;2011 billing cycle.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Filings with the MPSC&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In March&amp;#160;2011, Entergy Mississippi submitted its formula rate plan 2010 test year filing. The
   filing shows an earned return on common equity of 10.65% for the test year, which is within the
   earnings bandwidth and results in no change in rates. The filing is currently subject to MPSC
   review.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;&lt;b&gt;System Agreement Cost Equalization Proceedings&lt;/b&gt;&lt;/u&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;See Note 2 to the financial statements in the Form 10-K for detailed information regarding the
   System Agreement Cost Equalization Proceedings. The following are updates to the Form 10-K.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Rough Production Cost Equalization Rates&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&lt;u&gt;2010 Rate Filing Based on Calendar Year 2009 Production Costs&lt;/u&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;In May&amp;#160;2010, Entergy filed with the FERC the 2010 rates in accordance with the FERC&amp;#8217;s orders
   in the System Agreement proceeding, and supplemented the filing in September&amp;#160;2010. Several parties
   intervened in the proceeding at the FERC, including the LPSC and the City Council, which have also
   filed protests. In July&amp;#160;2010 the FERC accepted Entergy&amp;#8217;s proposed rates for filing, effective June
   1, 2010, subject to refund, and set the proceeding for hearing and settlement procedures.
   Settlement procedures have been terminated, and the ALJ scheduled hearings to begin in March&amp;#160;2011.
   Subsequently, in January&amp;#160;2011 the ALJ issued an order directing the parties and FERC staff to show
   cause why this proceeding should not be stayed pending the issuance of FERC decisions in the prior
   production cost proceedings currently before the FERC on review. In March&amp;#160;2011 the ALJ issued an
   order placing this proceeding in abeyance. The LPSC&amp;#8217;s requests for rehearing and interlocutory
   appeal of the abeyance order have been denied.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;Interruptible Load Proceeding&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;See the Form 10-K for a discussion of the interruptible load proceeding. In September&amp;#160;2010,
   the FERC set for hearing and settlement judge procedures the Utility operating companies&amp;#8217;
   calculation of the refunds for the 15-month refund period of May&amp;#160;14, 1995 through August&amp;#160;13, 1996,
   as contained in the November&amp;#160;2007 refund report. The purpose of the hearing is to determine
   whether the refund amounts for such period were calculated in a just and reasonable manner. The
   settlement proceedings are ongoing. In the first quarter 2011 the Utility operating companies
   recorded regulatory assets or liabilities for the potential outcome of this proceeding. The
   Utility operating companies recorded regulatory assets because under the Federal Power Act the FERC
   can order the refunds among the companies only if they are recoverable from customers.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;Entergy Arkansas filed a request with the APSC for recovery of the refund that it paid and the
   APSC staff has filed a motion to dismiss the request. A procedural schedule has not been set in
   the proceeding.
   &lt;/div&gt;
   &lt;!-- Folio --&gt;
   &lt;!-- /Folio --&gt;
   &lt;/div&gt;
   &lt;!-- PAGEBREAK --&gt;
   &lt;div style="font-family: 'Times New Roman',Times,serif"&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 0pt"&gt;
   &lt;/div&gt;
   &lt;/div&gt;
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 -Publisher FASB
 -Name Statement of Financial Accounting Standard (FAS)
 -Number 71

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